US$ 100 million for Argentina

(Buenos Aires, July 8, 2009).- With President of the Republic of Argentina Cristina Fernández de Kirchner and Minister for Federal Planning, Public Investment, and Services Julio De Vido attending as guests of honor, the executive president of the Corporación Andina de Fomento (CAF), Enrique García, and Argentina’s minister of economy and public finance, Carlos Fernández, signed a loan contract for US$ 100 million yesterday, which will partly finance the implementation of the Argentina-Paraguay Integration Railway Works Program. The project will be executed by Yacyretá, a bi-national agency, under an agreement with the Undersecretariat for National Railway Transportation.

Enrique García, CAF’s executive president, explained that “this approval reflects the Corporation’s integrationist dynamic, which has been consolidated by a Latin American vision and agenda, with an ever growing operational presence in the region, and an active, prominent role in regional integration.” He also emphasized that this loan is in addition to the US$ 110 billion granted by CAF for the Road Works and Urban Improvements Program to be implemented in areas on the outskirts of the border towns of Posadas (Argentina) and Encarnación (Paraguay) and access roads to the International Encarnación-Posadas Bridge.

The total cost of the program is approximately US$ 166 million, which means that CAF’s financing is equivalent to 60%, with the remaining 40% being provided from local contributions by the Argentine State.

The purpose of this program is to support the execution of investments committed by the Argentine Government to replacing 29 kilometers of railway infrastructure that will be affected by the raising of the Yacyretá Reservoir, in addition to other investments intended to improve the efficiency and operating capacity of the General Urquiza Railwy in Posadas and its interconnection with Encarnación.