The Minister of Finance, Luis Caputo, together with the Chief of Cabinet of the Ministry of Finance, Pablo Quirno, and the Secretary of Finance, Santiago Bausili, met this morning with Tharman Shanmugaratnam, Deputy Prime Minister and Coordinating Minister for Economic and Social Policies of Singapore.

At the meeting, they talked about Argentina as a potential destination for infrastructure investment, taking into account that Singapore invests almost every international reserve abroad.

The Assistant Managing Director, Der Jiun Joseph Chia; the Director of the Ministry of Finance, Chng Thien Alvin Lim; the Deputy Prime Minister’s Special Advisor, Zhang Yang Lim; the Senior Associate of the Ministry of Finance, Shan Ming Kenneth Kwan; and the Advisor Mei Chan Trina Chuang, attended the meeting representing Singapore.

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.