New loan for $200 million from investment project credit line seeks to increase country’s economic and social development
The Inter-American Development Bank (IDB) approved a loan for $200 million to finance the upgrading of priority roads in Argentina’s provincial roads network and their links to the national road network, a project that will help improve competitiveness and economic and social development, as well as reduce accidents.
The Productive Road Infrastructure Program II is the second operation financed with funds from a $2.5 billion credit line for investment projects for the country that was approved in September 2009. The credit line’s purpose was to finance road infrastructure in all of the country’s provinces through construction, maintenance, institutional strengthening, and better road safety.
The first operation, totaling $120 million, was signed in March 2010 and it is financing the Productive Road Infrastructure Program I. The new loan will finance road infrastructure in the provinces of Mendoza, Buenos Aires, San Juan and Entre Rios, among others.
Objectives include: improvement, maintenance and rehabilitation of roads, reduced travel time and transport costs, improved road safety and reduction of accidents, and development of management plans and institutional strengthening for provincial transport agencies.
Road safety support will include the identification of critical points and the implementation of design and construction of safety features in a pilot corridor.Other actions could include outreach and community awareness and training and interaction with other provincial entities that have responsibility for road safety.
"Due to the large number of accidents that take place on the country’s highways, the Argentine government has made road safety a priority with the creation of the National Highway Traffic Safety Agency," said Fernando Orduz, IDB project team leader."Through this program and other support for the country’s roads, the Bank is promoting actions to improve road safety conditions and ensure compliance with appropriate standards in all new investments.These actions are consistent with the United Nation’s launch of the Decade of Action for Road Safety."
The $200 million IDB loan is for a 25-year term, with a four-year grace period, and a variable interest rate based on LIBOR. Local counterpart funding totals $10.5 million.
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