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Argentina and China signed the first agreement at a preferential rate of 3%

The USD 331.5-million loan will finance the “Parque Fotovoltaico Cauchari Solar I, II and III” solar park that will generate 300 MW and will benefit more than 300,000 households.

The Undersecretary of International Financial Relations, Martin Soto, and representatives of the Export-Import Bank of China signed today in Beijing a 15-year financing agreement for USD 331.5 million at a preferential rate of 3% (with a 5-year grace period) aimed at the construction of “Parque Fotovoltaico Cauchari Solar I, II and III” solar parks in the Province of Jujuy.

This agreement is entered into within the framework of the Cooperation Agreement for Economic and Investment Affairs between the Argentine Republic and the People’s Republic of China approved by Argentine Law No. 27122 and contemplated in the 2017-2021 China-Argentina Comprehensive Five-year Project for Cooperation in Infrastructure. It is the first project financed with a concessionary line of credit granted by the Export-Import Bank of China, bank appointed by the Government of the People’s Republic of China to grant said credits.

The Project will enable to increase the availability and access to renewable energy sources to the Argentine Interconnection System (SADI, for its acronym in Spanish), through the construction of three solar parks of 100 MW each. Likewise, it will foster economic development with a positive environmental impact, creating jobs for the inhabitants of the region and the entire Province.

The project will take place in the region of La Puna, Cauchari, District of Susques, Province of Jujuy, at 278 km from the City of San Salvador de Jujuy, a strategic location from the solar resource point of view.

The Government of the Province of Jujuy, in line with the national energy policy and taking into account the objectives of the Presidency of the Nation, has undertaken the challenge of developing a solar park that contributes to the national energy development, to the reduction of generation costs, and to the moderation of climate change taking advantage of the excellent available solar energy.

In this sense, considering that around 300,000 households will be provided with the plant’s energy, it can be estimated that 1,200,000 people will be benefited by the electricity generated. In addition, this project will foster the region’s economy, creating approximately 600 jobs and during its operation around 100 jobs.

During his visit to Beijing, Soto also met with representatives of the Concessional Exim Bank to work on the project to improve San Martin Railway and with authorities of the Commercial Exim Bank to make progress on the “Río Subterráneo Sur y Estación Elevadora – Tramo II” Project. Likewise, he met with representatives of the Industrial and Commercial Bank of China (ICBC) to work on the Project of Nuclear Plants IV and VI and with authorities of SINOSURE to improve the financial conditions and risk premium for future projects.

Soto’s agenda in China also included a meeting with representatives of the company Gezhouba to analyze hydroelectric projects of Santa Cruz River, Condor Cliff Stage II. In order to make progress on the first project, this Friday he will be working with authorities of the China Development Bank, with whom he will also discuss the agenda of the Financing Agreement of the Project to improve Belgrano Cargas Railway and the Project to acquire rolling stock for Electric Roca Railway. Finally, Soto will analyze the Project “Termoeléctrica Manuel Belgrano II” together with representatives of the China National Technical Import & Export Corporation.