News Releases

Aug 2, 2006

IDB approves $180 million loan to province of Cordoba, Argentina for social development program

Will improve education, housing and hospital system

The Inter-American Development Bank announced today a $180 million loan to the Argentine province of Córdoba for a social development program to improve education, housing and the hospital system. 

Located in the center of the country, Córdoba is an important center of agribusiness and export industries. Most of its population lives in urban areas, half of it in its capital city.

The program will improve and expand public education and hospital services and address the housing needs of families in areas subject to flooding or other environmental hazards. The current program builds on the gains obtained by a previous IDB loan to Córdoba.

Financing for this project will be distributed as follows:  $60 million for education, $52 million for the hospital system, $63.5 million for housing, $3 million for administration and $1.5 million to consolidate a management by objectives model in the provincial government institutions.

The coverage and internal efficiency of Cordoba’s educational system are above the national average and among the highest in Latin America, but it requires reinforcement in order to reach low-income students more effectively.  School infrastructure and equipment will be upgraded and teaching conditions in poor areas will be improved at the preschool, primary and middle school levels.

Also, better resolution capacity, coverage and efficiency in the hospital system will be achieved by the renovation and expansion of the Cordoba and Misericordia hospitals and by strengthening provincial hospital management.

Approximately 2,500 families currently living in high risk areas in the city of Cordoba will be provided with housing solutions and steps will be taken to protect the cleared areas.

“The coverage and quality of education and housing, and the improved resolution capability of the provincial hospital system will benefit primarily low-income groups,” said IDB Team Leader Jorge Tejada. “Also, the province’s management by objectives system will be implemented to monitor government ministries and agencies.”

The executing agency will be the Córdoba Investment and Finance Agency that reports directly to the provincial executive and is responsible for planning, administration, coordination, execution, monitoring and evaluation of nationally- and internationally-financed projects.

The loan is for a 25-year term, with a four-year grace period at a variable interest rate. Local counterpart funds will total $35 million. The loan will also have the national government guarantee.

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