The Inter-American Development Bank (IDB) approved a USD 150-million loan for sewage works and flood mitigation that will benefit the Cities of Pergamino, San Antonio de Areco, General Villegas, Rivadavia, Pehuajo, Carlos Casares, Carlos Tejedor, 9 de Julio and Trenque Lauquen in the Province of Buenos Aires.
In that regard, the Minister of Finance, Luis Caputo, highlighted “IDB support to execute the ambitious infrastructure plan the country needs”.
The project will finance irrigation works, the replacement and extension of bridges and floodgates, and the construction of flood dams. This will increase the driving ability of the river Areco and the stream Pergamino, as well as the channel Mercante-Jauretche.
Likewise, the project will finance the strengthening of the institutional background of the municipalities and the Province of Buenos Aires to prevent, manage and mitigate flood risks.
The execution of the works will improve the quality of life of 340,000 inhabitants and the reduction of economic damages caused by floods would be of USD 32.2 million per year (currently it is of USD 38 million per year).
The loan will be paid during the next 5 years and it will have a 25-year amortization period with a 5.5-year grace period and a LIBOR interest rate.