US$240 million for Argentine energy sector

(Caracas, March 8, 2010).- CAF today announced approval of US$250 million in favor of the Argentine Republic to partially finance the Project to Extend the Useful Life of the Embalse Nuclear Plant (CNE).

The executing body is the Ministry of Federal Planning, Public Investment and Services through Nucleoeléctrica Argentina S.A. (NASA). The total cost of the project is US$1.03 billion, of which the CAF loan equivalent to 23%.

CAF President & CEO Enrique García said, "the loan will lengthen the life of the Embalse Plant. We are supporting the plans of the Argentine government in energy generation, as well as contributing to improving the quality of life of approximately 3.5 million people who will use the service generated by this plant, at the same time as favoring development of the science and technology system in Argentina."

Embalse, the second largest nuclear plant in Argentina, has a capacity of 648 MW and supplies the northeast region of the country which covers Cuyo, Centro and Greater Buenos Aires. Since the plant will complete its useful life at the end of 2011, the Argentine government decided to rehabilitate the facility to provide service for a further 25 years by conditioning and replacing components of the reactor and other basic systems.

The plant generates thermoelectricity of nuclear origin based on Canadian CANDU technology, which uses natural non-enriched uranium as energy source. The Canadian state company, Atomic Energy of Canada Limited (AECL), owner of the CANDU patent, will be the main adviser of NASA in executing the project to extend the plant’s useful life.

The valuable experience provided by the various electro-nuclear reactors of CANDU technology which are in process or have been rehabilitated will facilitate and speed up the project in Argentina.

The CAF chief added, "generation of electricity from nuclear energy is receiving a new stimulus around the world because of its contribution to mitigating global warming caused by emissions of carbon and other greenhouse gases. China and India, several European countries and the United States have announced plans to increase the use of this source in their energy mixes. Latin America has following this trend and Argentina has been in the vanguard of electro-nuclear development in our region."

Integrated development agenda

The Agenda for Integrated Development proposed by CAF aims to achieve high, sustained, sustainable and quality growth for which it is necessary to have a base of productive infrastructure and adequate services, including - naturally - energy. In this respect, CAF gives priority to national, regional and local projects and programs which promote investment in sustainable infrastructure and which, in this particular case, also strengthen the science and technology systems of Argentina and Latin America.

Since the 2000-02 crisis, Argentina has enjoyed sustained economic growth, which has let to a considerable increase in energy consumption. To meet this demand various projects have been executed to increase supply, especially from hydroelectric sources, at the same time as increasing the transport capacity of electricity transmission lines and gas pipelines. In this respect, CAF has given permanent backing to the Argentine effort in this sector.

Argentina was a pioneer in the region in nuclear energy. In 1964 studies began for the Atucha I nuclear plant, which began operations in 1970. The second Embalse plant began operations in 1984. Now a third nuclear plant is under construction (Atucha II) and operations are planned to begin late next year.

The Argentine experience in the operation, maintenance and integrated management of the electro-nuclear industry is impeccable and fully backed and endorsed by national, regional and international organizations, such as the International Atomic Energy Agency. This experience has contributed to the development of important scientific and technological activity in the country.