IDB Approves $75 Million to Improve the Drinking Water Service in the Province of Buenos Aires

The Inter-American Development Bank (IDB) approved a $75 million loan to Argentina to enhance the quality of life of people in the Province of Buenos Aires by improving the drinking water services.

The IDB Group remains committed to supporting Argentina's development agenda with projects that have a direct impact on development. The Province of Buenos Aires will also invest $18.75 million of its own funds in the program, for a total of $92.75 million to be disbursed over the course of five years.

From 2010 to 2019, the province significantly expanded its sanitation services and also slightly broadened its drinking water coverage. However, the province still has access gaps and lingering water quality problems, especially in cities and suburban areas with fewer than 100,000 inhabitants, where poverty levels are higher.

The program will invest in overhauling and building distribution systems, wells, purification plants and complementary infrastructure that will help improve the quality and operational capacity of drinking water systems.

The program will also focus on reinforcing Aguas Bonaerenses S.A.’s management of water and sanitation services. These aspects will include equipment for operating and maintaining infrastructure, a plan for upgrading technology, equipment for enhancing water quality laboratories and studies and projects. It will also fund the implementation of AquaRating, a system for evaluating water and sanitation utilities based on an international standard.

The program will also help different areas of the province develop water and sanitation master plans, which will include criteria for managing climate change risk and ways to help reduce greenhouse gas emissions. There are also plans for hydrogeological studies, equipment, training and consulting to reinforce new projects; technical, environmental and social oversight for water and sanitation projects; and support for policies for gender equity and inclusion of people with disabilities.

The program is expected to benefit approximately 1.1 million people (256,509 households) in the Province of Buenos Aires by delivering higher-quality drinking water.

This operation aligns with Vision 2025 – Reinvest in the Americas: A Decade of Opportunities, in which the IDB maps out the path to recovery and inclusive growth in Latin America and the Caribbean. Of the various pillars of the Vision 2025, this specific program focuses on economic integration; micro, small, and medium enterprises; gender and inclusion; and climate change..

The IDB’s $75 million loan to the Province of Buenos Aires has a repayment term of 24.5 years, a grace period of six and a half years, and an interest rate based on the SOFR.