CAF Approves USD90 million to Develop Highway Infrastructure in Argentina
CAF financing will help facilitate the flow of traffic on highway networks in Argentina's Jujuy and Santiago del Estero provinces.
(Lima, Dec. 3, 2013).-CAF-development bank of Latin America-recently voted as Best Multilateral Development Bank of The Year by Latin Finance Magazine, approved a USD90 million loan for the Republic of Argentina to improve provincial roads and highways.
The loan will finance projects in the Jujuy and Santiago del Estero provinces under the framework of the Regional Highway Development Program, which seeks to promote and integrate productive sectors of the regional economy via investments in highway infrastructure.
"The objective is to support investments that improve, expand or refurbish provincial highways with the aim of promoting greater provincial and regional economic competitiveness," said CAF Executive President Enrique García.
García added that improvements made on Argentine road and highways "are crucial to optimizing the performance of the entire transportation sector and to promoting and developing local tourism industries as well as greater productive integration among the country's different regions."
Roads serve as Argentina's chief mode of transportation, handling approximately 81 percent of the country's total freight volume, with the remaining 19 percent transported by rail (6 percent), pipelines (7 percent), rivers (5.5 percent) and by air (0.5 percent).
Investments will refurbish, build or pave approximately 102 kilometers of roads and highways over 24-month timeframes. Work will take place on Provincial Route N°4 in Jujuy, which runs 25 kilometers from Yala to Termas de Reyes, and Provincial Route N°116 in Santiago del Estero, which will cover a 36.8-kilometer stretch of highway linking El Colorado with Quimilí and another 40.1 kilometers connecting Quimilí with El Bravo.
Total investments in the program are pegged at USD128 million, of which USD38 million (30 percent) will come from Argentina and USD90 million (70 percent) from the CAF loan, which will be used to finance roadwork as well as environmental and social impact studies, inspection costs and fees, management operations, safety audits, due diligence and other activities.
Upgraded highway networks covered in the program will lead to significant improvements to the regional economy, especially by cutting operating costs for vehicles using the improved routes by speeding up the flow of traffic on rehabilitated roads.
Reduced travel time for freight transporters using the upgraded roads traveling at faster speeds will cut transportation costs even further and help contribute to economic and tourism development in the Jujuy and Santiago del Estero provinces.
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