The Inter-American Development Bank (IDB) approved a USD 960-million conditional loan, with a first stage of USD 305 million. The project is aimed at improving the access to sanitation, increasing potable water availability, supporting the sustainability and strengthening of the Argentine water provider (AySA) and improving treatment conditions and disposition of waste water for more than 11 million people who live in the first, second and third strip of the metropolitan area of Buenos Aires.

The first stage of the credit line will be used to finance the extension of the sewing system in Moreno and San Miguel, which will benefit 19,000 households with the construction of La Catonas and Marilo sewer pipes, and which will enable to treat waste water generated by more than 210,000 inhabitants.

In addition, the project foresees the construction of the sewage pipe of Berazategui, which will guarantee the correct disposition of waste water generated by 5.1 million inhabitants and which is thrown to La Plata River.
The project also includes the purchase of equipment to reduce physical water losses and decrease the unsatisfied demand of potable water for nearly 130,000 people.

Finally, the loan covers the financing of institutional strengthening actions through the improvement of the regulatory framework of AySA, of the capabilities and competence of the company’s staff and the operational reorganization to face the extension of the area where the service is provided.

The Minister of Finance, Luis Caputo, was appointed President of the Board of Governors of the Financial Fund for the Development of La Plata Basin (FONPLATA, for its acronym in Spanish) at the XVI Annual Meeting of the multilateral organization developed this morning at the Intercontinental Hotel.

During his speech before the Board, Caputo recognized the worth of the relation with the organization as strategic partner in the process of regional development and he said: “FONPLATA commitment helps us overtake structural gaps of the region. Every project financed by this institution has been a step forward in getting over said gaps, in making progress in the development of our countries and in the opportunities of our citizens”.

In addition, the Minister of Finance ratified the mission and strategic point of view of this multilateral organization: to support the integration of the countries that are part of the Fund and reduce socio-economic inequalities among their citizens; to achieve more loan capacity for FONPLATA and effectiveness for borrowers; and to work for the reduction of poverty.

The Institutional Strategic Plan for the next years was also approved at the meeting where the Minister of Development Planning of Bolivia, Mariana Prado; the Secretary of International Affairs of the Ministry of Planning, Development and Management of Brazil, Jorge Arbache; the Minister of Treasury of Paraguay, Lea Gimenez; and the Minister of Economy and Finance of Uruguay, Danilo Astori, attended.

The Board of Governors is the governing body of the Fund and it is comprised by 5 permanent governors and 5 alternate governors designated by the member countries. Ordinary meetings are held once a year and special meetings whenever it is deemed necessary. The Board’s main duties are the following: to allocate FONPLATA’s profits, to approve the Board of Director’s annual report and duly audited financial statements; to appoint the President of the Board of Governors according to the rules contained in the Articles of Agreement and to appoint external auditors.

FONPLATA is a multilateral organization comprised by 5 countries: Argentina, Bolivia, Brazil, Paraguay and Uruguay, which main purpose is to support the integration of member countries to achieve an inclusive development within the geographical areas of influence of La Plata Basin through credit operations and non-refundable resources of the public sector.

The Inter-American Development Bank (IDB) approved a USD 400-million financing for Argentina, aimed at the readjustment and electrification of Buenos Aires General San Martin Railway, between the stations Retiro and Pilar. The total amount of this project is USD 522 million and it will include a local contribution of USD 122 million.

In this sense, Minister Luis Caputo said: “We are working to guarantee financing for infrastructure investment, necessary for the growth and creation of jobs in the country and for making Argentina a competitive country”.

The project will finance the readjustment and electrification of the line, including the renovation of tracks between stations Retiro-Palermo and Paternal-Pilar, the electrification and construction of a transformer substation and autotransformer centers.

The project will also finance the installation of new signaling and communication systems, the acquisition of equipment for cabling and maintenance of catenary, the transformation of Playa de Alianza into a maintenance shop and the restructuring of Pilar station.

The installation of a modern signaling system will contribute to more security in transportation and efficiency in the operation of the line. In addition, the effects of climate change will be mitigated through the modification of trains’ traction systems, which will allow the reduction of carbon.

This way, travel times will be reduced and confidentiality, quality and capacity of the railway system will improve in the Northwest corridor of the Metropolitan area.

San Martin Line has an extension of 76.3 km and transports 51 million passengers every year, which makes it one of the main lines of railways in the Metropolitan area.

The President of the World Bank, Kim Yong Kim, agreed today with the Argentine Government to finance new projects for 2018 for 2 billion dollars. The financing will be divided in two stages of 1 billion for the public sector and 1 billion for the private sector.

In addition, the Minister of Finance, Luis Caputo, and the President of the World Bank signed three loans of the International Bank for Reconstruction and Development (IBRD), one of the member institutions that compose the World Bank Group, for more than 400 million dollars aimed at the improvement of access to housing, the improvement of administrative services for the citizenship and at the increase of financing for Belgrano Plan.

The Comprehensive Housing Project, financed by the International Bank for Reconstruction and Development (IBRD) for 200 million dollars, shall be aimed at the increase of access to formal housing and to the improvement of living conditions in selected urban informal settlements.

The project of Modernization and Innovation to Improve Public Services in Argentina, also financed by the IBRD for 80 million dollars, shall be aimed at the improvement of quality and access of some selected governmental administrative services and at the increase of transparency within public administration. The additional financing for the Belgrano Plan shall be aimed at the development of water-provision and sanitation services for 125 million dollars.

Kim began today his visit to Argentina with a working agenda of meetings with Government officials. It is the first time in 25 years that a President of the World Bank visits Argentina.

The President of the WB had a working meeting at Quinta de Olivos with President Mauricio Macri at which Minister of Finance Luis Caputo also attended. The last time Kim and Macri met was in China, during the Argentine President visit last May.

The President of the multilateral credit organization ratified his support to the reform process undertaken by the Government of President Macri: “At the World Bank we are enthusiastic about the reforms made by Mr. President. They are in the right path and we invest where we see we have to invest. We have increased our programs in Argentina because they have a very promising future”, Kim said.

The Minister of Finance, Luis Caputo, Argentine Governor before the WB, highlighted the role of the credit organization as an ally: “The World Bank is a strategic partner in our program of economic reforms and in the process of recovering the world’s confidence in our country. The World Bank’s support is a key element to modernize and improve infrastructure. We need better routes, better trains, better communications to grow and to create sustainable employment. For more than 60 years, Argentina and the World Bank have been partners”.

In that sense, Macri and Kim ratified the importance of developing infrastructure, connectivity, entrepreneurship and social assistance.

The agenda continued with a speech of the president of the multilateral organization at the Congress. The speech was introduced by Minister Luis Caputo. Both officials highlighted the importance of investment and the creation of jobs. Kim was accompanied by the acting president of the Senate, Federico Pinedo, and by the head of the Chamber of Deputies, Emilio Monzo. Before the legislators, the representative of the WB gave a positive opinion about Argentina’s presidency at next-year G20: “The world needs a strong leadership and Argentina is ready for that”.

Since the beginning of this Government, the World Bank has lent Argentina USD 2.325 billion and USD 1.7 billion by the International Finance Corporation (IFC), focused on the private sector. Between January 2016 and April 2017, 12 projects for the public sector were approved for a total amount of USD 2.325 billion for production innovation, social security (Universal Benefit per Child, AUH for its acronym in Spanish), energy, transportation, water and sanitation and housing.