US$275 million for potable water and sanitation systems in Greater Buenos Aires

(Caracas, August 18, 2009).- With the objective of improving access to the water and sewage services by the low-income population of Greater Buenos Aires, CAF today approved a US$275 million loan in favor of the Republic of Argentina to finance the Plan for Expansion and Improvement of Potable Water and Sewerage Services 2008-2020, executed by Agua y Saneamientos Argentinos (AySA).

"The objective of the plan promoted by the Argentine government is to improve the coverage and quality of these services in the city of Buenos Aires and 17 municipalities of Buenos Aires Province, with a population of 10 million, about 26% of the country's population," CAF President & CEO Enrique Garc�a said. The approval is part of the anti-cyclical actions which the Corporation is taking to help the region confront the crisis in the international economy."

"In the Corporation we are aware - Garc�a added - that an effective strategy for moving toward universal access to potable water and sanitation services requires better use of the existing infrastructure, a more progressive allocation of public resources, and strengthening of the work of the operating companies, which is the reason for the support we are granting to this important Plan."

On completion of this Program by the end of 2011, the government will have expanded coverage of the potable water service in the concession area of AySA from 80% to 95%, coverage of the sewage network from 60% to 75%, and improved health conditions in the metropolitan area and the quality of the environment of R�o de la Plata.

The projection for investments under the plan for the 2008-2011 period totals US$3.19 billion. The CAF loan covers 9% of this amount; the difference will be covered by funds from the National Treasury and the AySA company.