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CAF approved USD-130 million financing for Río Colorado-Bahía Blanca Aqueduct

With the presence of the Finance Ministry officials, the Organization approved a project that will benefit 450,000 people in the South of the Province of Buenos Aires and will promote industrial development.

March 14, 2017

The Council of the Andean Development Corporation (CAF, for its acronym in Spanish) approved this Tuesday in Panama the financing for 130 million dollars for the second stage of the Río Colorado – Bahía Blanca Aqueduct Project. The Chief of Cabinet, Pablo Quirno, and the Undersecretary of International Financial Relations, Félix Martín Soto, participated in the CLIX Board of Directors Meeting.

The approved Project will be executed by the Province of Buenos Aires and the CAF will be financing the 80%. The local contribution will be of 32.22 million dollars, amounting to a total of 162.22 million dollars. In addition, the 15-year loan includes a 54-month grace period.

This infrastructure investment consists in the building of a new system of water provision for the population and industry of Bahía Blanca and nine nearby locations. This way, this second stage completes the first stage of the project which has already been financed by the CAF with 150 million dollars.

Likewise, the comprehensive Project is comprised by a 140-km aqueduct that connects the cities of Pedro Luro and Bahía Blanca. It also includes an intake work and a purification plant in Pedro Luro, four cistern tanks and two pumping stations. According to the data calculated by the Province of Buenos Aires, the agreement will benefit 450 thousand residents of the region and it will provide the necessary infrastructure for sustainable growth in the industrial sector.

In addition, the CAF Board of Directors Meeting held this week in Panama was the last one presided over by Enrique García, Executive President of the organization as from 1991, and he will be replaced by the new elected President, the Peruvian Luis Carranza.

The CAF is a development bank, founded in 1970 and comprised by 19 countries and 13 private banks of the region, that promotes a sustainable growth model through the support of public and private-sector projects in Latin America. Within this framework, the Shareholders Meeting is its governing body, in charge of approving the annual report of the Board of Directors, the financial statements properly audited, and determining the allocation of the profits earned.