Argentina Boosts Agricultural Productivity in Río Negro with IDB Support

WASHINGTON – The Inter-American Development Bank (IDB) Board of Executive Directors approved an $80 million operation to boost agricultural productivity in the Province of Río Negro, Argentina, through investments in irrigation, rural electrification, and productive infrastructure.

The operation will finance the Rural Productive Development Program for the Province of Río Negro, which seeks to increase agricultural productivity, improve the efficiency of rural infrastructure, and strengthen production resilience. The initiative will help advance water-use efficiency, expand access to electricity, and strengthen the capacity of producers and institutions to prevent and respond to extreme events such as wildfires, droughts, and hailstorms.

"Río Negro has enormous potential to further strengthen its agricultural production. Through this operation, the IDB is supporting strategic investments that will improve access to water and energy, strengthen risk management, and create better conditions for producers. This initiative reflects our commitment to more productive and resilient growth for Argentina’s regional economies," said Viviana Alva Hart, IDB Group Representative in Argentina.

"The approval of this loan reflects the confidence that international organizations place in the way we manage the province. That confidence is built through responsibility, predictability, and keeping our commitments. This is the path we have chosen and will continue to strengthen," said Alberto Weretilneck, Governor of Río Negro Province.

This operation is the first under the Conditional Credit Line for Investment Projects (CCLIP) titled “Strategic Provincial Investments Program for Rural Productive Development,” which provides for up to $600 million to finance future investments in Argentina’s provinces. Through this credit line, the IDB will support projects aimed at strengthening rural infrastructure, promoting innovation and the adoption of new technologies, increasing agricultural productivity and developing more resilient and competitive production systems.

The program is expected to directly benefit nearly 7,000 agricultural producers in Río Negro Province. In addition, 566 households in Guardia Mitre will gain access to higher-quality electricity service. Indirectly, more than 275,000 people in the areas of intervention will benefit from improvements in the province’s water, energy, and productive infrastructure.

The loan has a 25-year repayment period, a 5.5-year grace period, and an interest rate based on SOFR. The financing will be complemented by $5 million in local counterpart funding, bringing the total program cost to $85 million.