CAF Approves USD 150 Million for Argentine Energy Project

(Lima, July 2, 2013).-To support Argentina's National Energy Plan, CAF-development bank of Latin America- has approved a USD 150 million loan for the Rincón Santa María-Resistencia Electricity Interconnection Project to strengthen power transmission.

CAF's Executive President Enrique García said the institution's investments in Argentina aim to support key sectors of the economy and contribute to the country's development and improve the quality of life of its inhabitants.

"This project will result in greater efficiency in Argentina's interconnection system and enable better use of electricity supply from the country's power generators," said García.

The Rincón Santa María-Resistencia Electricity Interconnection Project seeks to strengthen electricity connectivity between Argentina's Northwest Electricity System and northeastern power grids with the aim of improving reliability and capacity in infrastructure involved in power transmission.

The project's total cost comes to USD 246 million, of which CAF will provide USD 150 million to finance the installation of an extra high-tension, 500 kV power line between the Rincón Santa María transformer substation and the Resistencia transformer substation that will cross the Paraná River and expand capacity at both locations.

Over the last five years (2008-2012), the multilateral financial institution approved USD 4.851 billion towards development projects in Argentina, including USD 1.637 billion in the country's national energy sector during that time.