Sep 13, 2007
IDB approves US$60 million conditional credit line to improve allocation of public investment funds in Argentina
First individual loan under credit line also approved for US$20 million
The Inter-American Development Bank announced today the approval of a US$60 million Conditional Credit Line for Investment Projects (CCLIP) to Argentina to improve the allocation of public investment funds in support of the country's economic and social development. The Bank also approved the first individual loan under the CCLIP, a US$20 million operation.
The CCLIP will support consulting services and technical assistance; training; travel, per diems and logistical expenses; IT systems and equipment for the project cycle; and program administration and supervision. It will also support the development of subnational investment systems, mainly at preinvestment stage, including the creation of preinvestment units and the introduction of management by results.
The objective of the first individual loan, the Multisector Preinvestment Program III, is to enhance the return on public investments at national, provincial and municipal levels through three areas of activity: preinvestment studies; management and evaluation of studies; and building capacity to manage the project cycle and disseminate the program locally.
“The program will contribute to the process of setting priorities for public investment projects in order to maximize the impact of funds earmarked for investment in the coming years,” said IDB project team leader Dino Caprirolo. “Feasibility studies prepared under the program will result in approved investment projects for more than US$1.7 billion, a monitoring system and a methodology for quantifying the impact of the studies and drawing lessons learned, and a culture that recognizes the importance of the project cycle”, he added.
The CCLIP and its first multisector preinvestment program will support the IDB country strategy with Argentina by strengthening the environment for boosting investment and productivity and enhancing governance and fiscal sustainability.
The Economic Policy Secretariat of the Ministry of Economy and Production will execute the program through its Preinvestment Unit (UNPRE). The Bank has previously supported two successive multisector credit programs with UNPRE, and is also financing preinvestment activities through its Project Preparation and Execution Facility (PROPEF).
The first individual loan is for a 25-year term, with a five-year grace period at an adjustable interest rate. Local counterpart funds total US$5 million dollars.