CAF approves US $400M for road development, water infrastructure in Argentina

(Montevideo, July 3, 2012).- CAF –development bank of Latin America– announced the approval of US$400 million for programs that boost Argentina’s development agenda.

The first, US$250 million loan will be allocated to the Regional Road Development Program II. The second, US$150 million loan will support the Norte Grande Cleanup Infrastructure Program.

The goal of Regional Road Development Program II is expanding and optimizing provincial road networks’ roadworthiness in the country’s north, contributing to integrate the economies of Argentina’s different regions.

“This program’s final goal is to promote better access and safety conditions through roads that contribute to integrating the country’s different regions, favoring economic development as well as social and economic inclusion in Argentina,” said CAF President Enrique García.

García also stressed the program’s regional nature, saying, “It favors Latin American integration by participating in three of the IIRSA Axes,” in reference to the South American Regional Infrastructure Integration Initiative (by its Spanish acronym.) It also contributes, he added, to improving links with neighboring countries, and he pointed out the institution’s consistent support to Argentina’s development. “CAF has participated in the rehabilitation and construction of more than 1,000 kilometers of roads, road and railway feasibility studies, as well as contributing to agencies’ institutional strengthening.”

The approved program includes more than 125 miles of roadwork in the provinces of Formosa (Ruta Provincial N° 24, 60 miles); Misiones (Ruta Provincial N° 8, 22 miles); and Santiago del Estero (Ruta Provincial N° 116, 40 miles), as well as other roads contemplated in Argentina’s Regional Road Development Plan.

Water treatment in Norte Grande The second, US$150 million loan approved today for Argentina is intended to contribute to Norte Grande region’s sustainable economic development by building drinking water and cleanup infrastructure.

The project seeks to expand drinking water and sewer coverage for low income users; achieve a more efficient use of water systems and regulation; improve urban drainage systems; increase sanitary and hygiene conditions by treating waste waters; and improve environmental conditions in order to avoid water courses’ pollution.

“The program is part of the investments pursued by the national government in order to improve Argentines’ quality of life by making progress in water and cleanup services,” García said.

“CAF has been collaborating with the country on different projects linked to Argentina’s Norte Grande’s improvements,” he added. “In regards to water and treatment, the institution has approved more than US$2 billion in the 2007-2011 period for financing investment in that sector in the region.”

The loan approved by CAF will be used to build a wastewater treatment plant in Corrientes; improvements in Sistema La Salada - Riacho El Porteño - Riacho He He waterworks system, in Formosa province; and drinking water supply in El Colorado y Los Juríes, Santiago del Estero province.