European Investment Bank and French Development Agency Financing for USD 322 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.