Project will improve urban services and infrastructure in metropolitan areas, boosting living conditions for 19.5 million people
Argentina will implement a management support program in 21 metropolitan areas, improving the living conditions of 19.5 million people with help from a $240 million credit line for investment projects and of a first individual loan of $80 million approved by the Inter-American Development Bank (IDB).
The specific goal of the initial individual operation will be to improve urban services and infrastructure in metropolitan areas belonging to two or more territorial jurisdictions.
“Urban growth is creating cities where one single metropolis is covered by several local governments. Effective management of these areas requires coordinated actions that tackle critical issues such as transportation and climate change adaptation,” said Francisca Rojas, IDB project team leader. “The program promotes political agreements and generates technical abilities to implement metropolitan development projects and the institutions needed to manage them.”
The initial individual operation will implement actions to improve understanding of the problems that metropolises face and promote agreements on interventions requiring coordination among different municipal or provincial authorities with jurisdiction over one single metropolitan area.
It will also help create the institutions needed to provide services and infrastructure in multi-jurisdictional metropolitan areas and finance urban infrastructure and equipment investments.
In this sense, it will support the execution of projects that require coordinated action among different territorial jurisdictions, such as parks and public spaces systems; integrated watershed management; integrated management of urban solid waste and sustainable mobility systems, including pedestrian and bicycle lanes; and other climate change mitigation and adaptation interventions.
Additionally, the program will support the development and institutional strengthening of metropolitan entities needed to design, implement and manage investment projects, as well as the consolidation of provincial and municipal associative abilities necessary to handle metropolitan area issues.
The project will also provide assistance to the sharing of knowledge of metropolitan areas policies and to the development of technical capabilities to ensure coordinated urban investments.
The $240 million credit line for investment projects and the single, initial loan of US$80 million are both for a 25-year term, with a 5.5-year grace period, at a LIBOR-based interest rate. They include $60 million and $20 million in local counterpart funds, respectively.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-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.