US$640 Million for Energy and Road Infrastructure in Argentina

(Mar del Plata, December 3, 2010).- In the presence of the President of Argentina, Cristina Fernández de Kirchner, Enrique García, executive president of CAF—development bank of Latin America—, and Amado Boudou, Minister of Economy and Finance signed two loan agreements for projects amounting to US$640 million during 20th Ibero-American Summit of Heads of State and Government. The first US$500-million tranche is aimed at funding a 500 KV Extra High Voltage Line project in Pico Truncado – Río Turbio – Río Gallegos – Calafate; and a second, $140-million tranche for the Regional Road Development Program.

CAF executive president Enrique García stated that the multilateral financial institution has supported the Argentine government’s investment strategy in growth-boosting sectors of the nation. “We have approved $3.7 billion between 2005 and 2010,” he said.

Supporting power supply

In an effort to address the power transmission needs provided for in the Federal Transportation Plan, helping provide stability, security and reliability to the system and connection between the Patagonian and Argentine Systems, CAF approved US$500 million for the Pico Truncado – Río Turbio – Río Gallegos – Calafate 500 KV Extra High Voltage Line project.

The project will be implemented by the Ministry of Energy of the Ministry of Federal Planning, Public Investment and Services, through the Trust Fund Management Committee for Federal Electric Transportation.

The executive president of CAF noted that “Argentina’s economic growth is driving a significant spike in energy consumption. To meet this demand, the government has completed several projects to expand power supply, while increasing generation and transmission capacity, and CAF has been regularly supporting the nation’s effort in this sector,” García noted.

Better roads in more vulnerable populations

In an effort to expand and optimize the condition of provincial road networks, in the interest of promoting productive and social integration between the different regions of the country, CAF allocated US$140 million for the Regional Road Development Program.

“These operations include programs aimed at furthering competitiveness of geographically remote areas, which helps boost economic growth and improve the quality of life of low-income, vulnerable groups in these regions,” Enrique García said.

The loan will be used as investment in road infrastructure in the provinces of Misiones, Formosa and Chaco, pre-investment expenses for studies and projects, as well as to help strengthen Provincial Road Directorates of these provinces.