December 4, 2018

The Development Bank of Latin America approved a USD 100-million loan for the social and urban integration of villa Rodrigo Bueno, villa 20 and villa Fraga, poor neighborhoods of the City of Buenos Aires.

The Board of Directors of the Development Bank of Latin America (CAF) will grant a loan for USD 100 million for Argentina’s Program for the social and urban integration of Villa 20, Villa Rodrigo Bueno and Villa Fraga, poor neighborhoods of the City of Buenos Aires.

The Program is aimed at developing and implementing urbanization projects to improve the social, economic and physical integration of 50,000 inhabitants of these neighborhoods. Specifically, the Program includes the improvement of houses, the creation of new houses and the opening of roads. It also includes the improvement of public spaces, the supply of equipment and basic infrastructure of urban services such as drinking water, sewage, and electricity, among others.

The CLXIV Board of Directors Meeting was held at Montevideo, Uruguay and included the participation of the Undersecretary of International Financial Relations of the Ministry of Treasury, Martín Soto.

The Bank expects for 2019 approvals for USD 1.86 billion and disbursements for USD 8.04 billion, with a portfolio of loans and investment for USD 26.88 billion, representing a positive variation of 5.5% compared with the previous year. Argentina is the main beneficiary of CAF financing, with the 14% of the organization’s portfolio in investment projects in strategic sectors for the growth of the country and the generation of quality jobs. In 2018, Argentina has received approvals for a total of USD 1.3 billion and the amount of expected disbursements is of USD 775 million.

• The European Investment Bank signed a financing agreement for USD 125 million for water and sanitation works in the metropolitan area and for the provincial waste management. The institution also committed to allocate USD 63 million for solar energy development in Jujuy.
• The French Development Agency committed to allocate USD 134 million to strengthen provincial water and energy infrastructure management.

The Minister of Treasury, Nicolás Dujovne, signed financing agreements with the president of the European Investment Bank (EIB), Werner Hoyer, and with the Argentine director of the French Development Agency (AFD, for its acronym in French), Juliette Grundman, for water and sanitation works and sun energy projects in Jujuy.

The EIB will finance works to improve and broaden drinking water and sanitation services in the metropolitan area and Greater Buenos Aires and to strengthen the Comprehensive Management of Solid Urban Waste and Energy Valorization in the Province of Jujuy for a total amount of USD 125 million. The French Development Agency (AFD) will allocate more than USD 134 million for water works to prevent floods in the Province of Buenos Aires and to strengthen the provincial management for the development of solar energy projects.

“This financing enables Argentina to continue in the path of development. Since we took office we have remained committed to the improvement of the quality of life of Argentine people and signing these agreements confirms our commitment”, Dujovne said.

European Investment Bank Financing

The loan will contribute to the “Drinking Water and Sanitation Program for the Metropolitan Area of the City of Buenos Aires and Greater Buenos Aires” and to the “Drinking Water and Sanitation Program for the Metropolitan Area of the City of Buenos Aires and the First, Second and Third Area of Greater Buenos Aires – First Stage”, for USD 80 million.

The officials also signed a guarantee agreement for a financing agreement between the Province of Jujuy and the EIB for USD 45 million, aimed at the strengthening of the provincial environmental policy through the Program of Comprehensive Management of Solid Urban Waste and Energy Valorization (GIRSU, for its acronym in Spanish).

The meeting, held in Casa Rosada within the framework of the G20 Summit, was attended by the Governor of the Province of Jujuy, Gerardo Morales; the Undersecretary of International Financial Relations, Martín Soto; the national director of Projects with Bilateral External Financing, Matías Mana; and other authorities of the European Union and the EIB.

The EIB is the credit organization of the European Union that offers financing and technical assistance for innovation projects, SMEs, infrastructure and environment.

French Development Agency Financing for more than USD 139 million

Two loans were signed. The first one will be aimed at the second stage of the Program to Strengthen the Provincial Management, for an amount of up to USD 50 million, to contribute to the provincial growth and sustainability through the improvement of income management and to enable the implementation of investment projects. For this loan it is expected a co-financing agreement with the Inter-American Development Bank (IDB).
The second loan, for USD 40 million, co-financed by the Development Bank of Latin America (CAF), provides support for the Comprehensive Management Plan of Luján River Basin, aimed at fighting floods in the Province of Buenos Aires. This program will be developed in the districts of Chacabuco, Luján, Mercedes, San Andrés de Giles and Suipacha.

The AFD, the development bank of the French Government, has been contributing since 2017 to the strengthening of the bilateral relations between both countries, investing in new cooperation areas such as structural reforms, the development of sustainable cities, the adaptation to the climate change, and cultural and creative industries.

Financing for Solar Energy Projects in Jujuy

In addition, an Intention Letter was signed among the AFD, the EIB and the Province of Jujuy, represented by its Governor Gerardo Morales. This intention letter opens the possibility of carrying out, in 2019, a solar energy project for the Province for an amount of up to USD 126 million. The EIB will contribute with the 50% and AFD with the 35% approximately. The energy project foresees the construction of solar parks to increase the production of clean and renewable energy (with no CO2 emission) for the system of distribution of electric energy in the Province.

The event took place at the bilateral meeting, within the framework of the G20 summit, with the Minister of Treasury of France, Bruno Le Maire, and the Minister of Foreign and European Relations, Jean-Yves Le Drian. The event was also attended by the general director of the Treasury of France, Odile Renaud-Basso, and the Undersecretary of International Financial Relations of the Argentine Ministry of Treasury, Martín Soto.

The multilateral organization also approved the amendment of its Articles of Agreement which will enable the inclusion of new partners and the creation of strategic alliances

The Financial Fund for the Development of the River Plate Basin (FONPLATA) approved a financing agreement for the project of Provincial Highway No. 13 of the Province of Chaco for more than USD 37 million at the 161st Board of Directors Meeting held in Santa Cruz de las Sierras (Bolivia). The meeting was attended by the National Director of Financing with Credit Regional Organizations of the Ministry of Treasury, Héctor Dottore.

The project, amounting to USD 45.75 million, is aimed at the improvement of productivity and the economic integration of the Province. It will also include the paving of the Provincial road infrastructure.

Likewise, FONPLATA Board of Governors approved the amendment of its Articles of Agreement to become a multilateral development bank and enable the inclusion of new partners.

Currently, the ongoing projects between Argentina and FONPLATA amount to USD 430 million. The loans are mainly aimed at infrastructure, transportation and production.

FONPLATA is a multilateral organization whose member countries are Argentina, Bolivia, Brazil, Paraguay and Uruguay. Its main purpose is to support the integration of member countries to achieve an inclusive development.

The Inter-American Development Bank (IDB) approved today a USD 900-million credit line for Argentina aimed at the sustainability of the programs “Hacemos Futuro”, “Progresar” Scholarships and the Social Tariff for Public Transportation. The loan will benefit more than 4 million people. This is the first operation of a multi-phase credit line for USD 1.5 billion to foster education, job training and access to public transportation.

More specifically, this program will benefit 235,000 people of the program “Hacemos Futuro” carried out by the Ministry of Health and Social Development; 653,723 young adults between the ages of 18 and 30 beneficiaries of “Progresar” Scholarships granted by the Ministry of Education, Culture, Science and Technology; and 3.8 million beneficiaries of the social tariff for public transportation. In addition, 360,000 beneficiaries will have an extension on the tariff promoted by the Ministry of Transportation.

IDB – Inter-American Development Bank is a multilateral organization and a strategic ally for Argentina. Since 2016, IDB has increased a 122% its participation compared with the 2013-2015 period in the financing of development projects aimed at improving the health, education and infrastructure sectors.