Loan for road program to upgrade road communications in Argentina and favor regional integration

(Caracas, November 29, 2011).- CAF - Latin American development bank - today announced approval of a US$168 million loan for the Road Development Phase II: National Route 40 Program, being implemented by the government of Argentina.

"It is – CAF President & CEO Enrique Garc�a said - a program to improve the country's longest highway near the border with Chile benefiting not only the connectivity of a large part of Argentine territory, but also serving regional integration and strengthening links with the neighboring country."

He added that with the new approval, more than US$640 million has been granted by CAF for road development in Argentina."The funds approved for this sector have been used for construction and upgrading of over one thousand kilometers of roads, with a total investment of over one billion dollars," García said.

The Road Development Phase II Program, implemented by the national government at a total cost of US$240 million, is also a commitment to stimulating sectors with high growth in recent years such as tourism and agriculture, mining and industry. "The Program – García concluded – promotes the economic and social integration of the regions and the most backward social sectors in the country."

National Route 40, running parallel to the Andes Cordillera, crosses Argentina's 11 provinces from south to north. It is the longest highway in the country and connects a number of tourism regions and some of the country’s most important attractions.

The CAF funds will be allocated to road works and technical and environmental supervision of the Mendoza section (161 kilometers between Malargue and Barrancas town) and the Chubut section (41 kilometers from the town of Río Mayo to the border with Santa Cruz province), as well as other sections under analysis.

The loan will also finance pre-investment studies for projects on other sections of National Route No. 40 pending action, and a strategic environmental and social assessment study for the entire corridor, along with institutional strengthening of the National Roads Department.