IDB Supports Strengthening Water Security and Services in the Argentine Province of Mendoza

WASHINGTON — The Board of Executive Directors of the Inter-American Development Bank (IDB) approved $150 million in financing to improve drinking water and sanitation services and water security, and to strengthen agricultural production in the province of Mendoza, Argentina, directly and indirectly benefiting more than 1.6 million people.

The operation will increase water availability and quality by expanding and optimizing wastewater treatment services, and it will strengthen the public management of water resources, which are vital to the provincial economy.

“Water is a fundamental driver of Mendoza’s development,” said Viviana Alva Hart, IDB Group representative in Argentina. “This operation will help strengthen the province’s water infrastructure, improve water and sanitation services for thousands of people, and support the growth of strategic productive activities for its economy. At the IDB, we continue to support projects that generate well-being, expand opportunities, and contribute to the development of Argentina’s provinces,” she added.

The program will support the metering and renewal of household drinking water connections, the modernization and automation of wells, the development of new projects, the construction and optimization of wastewater treatment plants, and the implementation of interventions in drinking water treatment plants and technological innovation pilot plans.

Among the main investments planned are the construction of an effluent collection and treatment system in Villa Tulumaya, Lavalle; the rehabilitation of the Campo Espejo and Paramillo wastewater treatment plants; the expansion and optimization of the Uspallata treatment facility; and the construction of phases II and III of the Colonia Segovia wastewater collector.

Improvements in wastewater collection and conveyance, along with expanded proper treatment and reuse, will directly benefit 858,000 people. Increased quality and efficiency of drinking water services will directly benefit 73,500 people and indirectly benefit another 690,000.

The continuous provision of reuse water that meets design quality standards will sustain the irrigation of 7,000 hectares currently in production.

The program will also strengthen the management and governance of Agua y Saneamiento Mendoza (AySAM), the main provincial operator.

This is the first operation under a new Conditional Credit Line for Investment Projects (CCLIP) of $1 billion to improve water security in Argentina’s provinces.

The $150 million financing has a 25-year maturity, a 5.5-year grace period, and an interest rate based on SOFR.