USD 500 million approved for Argentina’s electricity system

(Caracas, October 13, 2010).- CAF (Latin America’s development bank) approved USSD 500 million for the Argentine Republic earmarked for the country’s power transmission needs, specifically for the Pico Truncado – Río Turbio – Río Gallegos – Calafate 500 kV Extra High Voltage Line project.

Enrique García, CAF’s executive president, stated that the multilateral financial institution had accompanied the Argentine Government’s strategy of investing in sectors that promote the country’s growth. “Between 2005 and 2009, more than USD 2.4 billion were approved,” he noted.

Referring specifically to the funds approved for Pico Truncado – Río Turbio – Río Gallegos – Calafate 500 kV Extra High Voltage Line project, García explained, “Since the 2000-2002 crisis, Argentina has posted a level of economic growth that has generated a considerable increase in energy consumption.”

“With the purpose of catering to this demand, the Argentine Government has executed a number of projects to increase the supply of electricity, while increasing both generation capacity and transmission capacity, and CAF has consistently supported Argentina’s efforts in this sector,” pointed out García.

The funds that have been announced seek to meet the power transmission needs contemplated in the Federal Transport Plan, so contributing to the stability, safety, and reliability of the system and also permitting the link-up between the Patagonia Grid and Argentina’s National Grid. CAF’s Executive President highlighted that the project will link up the province of Santa Cruz with the rest of the country, “contributing, besides, to that region’s economic development.”

The project is to be executed by the Federal Planning, Public Investment, and Services Ministry’s Energy Secretariat through the Administrative Committee of the Federal Power Transmission Trust Fund.