Over 4 Million Argentines to Benefit from USD 645 Million CAF Loans in Nutrition, Water and Roads

Promoting the well-being of the population, enhancing economic recovery, job creation and competitiveness in Argentina is a priority for CAF—development bank of Latin America—whose Board of Directors approved three credit operations for a total of USD 645 million for nutrition and social protection programs, water and sanitation, and roads, which will benefit more than 4 million Argentines in the coming years.

“At CAF we offer comprehensive support to member countries and the operations approved today in favor of Argentina are a good example of this support, by (i) underpinning the AlimentAR Card to improve food security of the most vulnerable groups, with emphasis on early childhood; (ii) the contribution to the expansion and improvement of efficiency of clean water supply services in the south-west region of Greater Buenos Aires; and (iii) the strengthening of the national road system to improve connectivity and competitiveness,” said CAF interim executive president Renny López.

At the 172nd Board meeting held in Mexico City, a USD 300 million loan was approved for phase II of the Support Program for the “Argentina against Hunger” Plan, which so far has benefited 2.9 million children aged 0 to 6 years, pregnant women and disabled persons, who also receive benefits from another consolidated social program called the “Universal Child Allowance” (AUH). This initiative aims to mitigate the effects of poverty and vulnerability, aggravated as a result of the COVID-19 pandemic, and has received additional CAF funding for USD 300 million approved in 2020, disbursed at 98%.

Argentina will also receive a USD 245 million loan for the AySA Clean Water Basic Works Program – Phase IV, which calls for projects that integrate the Southern Water System managed by the company. These include a new intake of raw water in Río de la Plata, with a 3,000 meter adduction pipe, the second stage of a pumping station at the General Belgrano water treatment plant, to reach a final pumping capacity of 3 million m3/day; and the construction of drive pipes and accessory equipment in a total length of 31,253 meters .

This Program is expected to benefit approximately 2 million residents (and a projected 2.5 million in 2040) of the regions of Almirante Brown, Lomas de Zamora, Ezeiza, Esteban Echeverría and La Matanza, providing them with cleaner water.

Lastly, the Board of Directors approved USD 100 million for the Argentine Road System Support Program, under a broad-based sectoral loan, aimed at reimbursing investments and expenses in the road sector, including expenditures on road conservation and capacity expansion through the establishment of corridors and duplication of lanes.