US$275 million for Argentina

(Buenos Aires November 4, 2009).- In the Ministry of Economy and Public Finance, CAF President & García Enrique García and Minister Amado Boudou signed a loan agreement for US$275 million in favor of the Argentine Republic to finance the Potable Water and Sewerage Services Expansion and Improvement Plan 2008-2010, executed by the state utility Agua y Saneamientos Argentinos S.A. (AySA). The project will improve the potable water and sewerage service of the city of Buenos Aires and some areas of the conurbation where a large part of the country's inhabitants are concentrated. The signing was attended by Planning Minister Julio De Vido as witness of honor.

After the signing Garc�a, who is on an official visit to Argentina, said, "CAF wants to collaborate with the national government's efforts to execute an agenda for financing investment projects which optimize and expand the physical infrastructure required for guaranteeing adequate provision of potable water and sewerage services in the Buenos Aires metropolitan area." The objective of these funds is to improve the living and health conditions of the most vulnerable population, Garcíaa said.

For the 2008-2011 period total investments of US$3.19 billion are projected under the plan. The CAF loan represents 9% of this amount; the difference will be covered by funds from the National Treasury, other multilaterals and AySA itself.

With execution of the investments covered by the expansion plan, AySA will increase coverage of the potable water service in the area of its jurisdiction from 80% to 95%, and sewerage service from 60% to 75%.