$200 million loan will benefit more than 150,000 households in northern provinces included in the “Plan Belgrano” anti-poverty program
Argentina needs to improve access to drinking water and sanitation services for citizens living in the northern provinces of Catamarca, Chaco, Corrientes, Formosa, Jujuy, La Rioja, Misiones, Santiago del Estero, Salta and Tucuman.
The IDB has approved a $200 million loan to finance drinking water and sewerage services enhancement, improve environmental sanitation and hygiene conditions through wastewater treatment, and boost the management capacity of water and sanitation service providers in the country’s northwest and northeast regions. Argentina will provide an additional $70 million in local counterpart funds for the project.
Improving basic services is one of the goals of the Plan Belgrano, which aims to tackle the historically high poverty, marginalization and low-development indices in northeastern and northwestern provinces.
The project will finance construction, enhancement and improvement of drinking water and sewerage systems in assisted areas. Planned works include groundwater extraction, surface water collection, potabilization plants, aqueducts, distribution networks, pumping stations with their respective electromechanical equipment, sewers, main and secondary collectors, sewage fluids treatment plants and systems, and ancillary works. This operation will also improve institutional organization, investment planning, and the operational, commercial and financial capabilities of water and sanitation operators, which are key elements to ensure investment sustainability.
“Argentina is giving priority to increasing access to and improving the quality of water and sewerage services in the provinces covered by the Plan Belgrano,” IDB Project Team Leader Henry Moreno said. “This program will provide sewerage services to 19,000 homes and wastewater treatment services to 130,000 homes.”
The IDB loan will be disbursed over a 5-year periodandhave a 25-year amortization term, with a 5.5-year grace period and a LIBOR-based interest rate.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.