WB approves US$200mn BA infra. loan

The World Bank (WB) has approved a US$200mn loan for Argentina to improve the provision of transport and water infrastructure services in Buenos Aires province, the bank announced. The money will support the Buenos Aires infrastructure sustainable investment development project, which funds key investments in the roads sector to enhance the province's productivity. Further, the program supports high social priority projects in the water, sewerage and drainage sectors targeted toward areas of low income and high vulnerability. "This project is the bank's first direct loan for infrastructure investments to a province in Argentina and represents a strategically important milestone in our dialogue with sub-national authorities in the country," said Axel van Trotsenburg, WB country director for Argentina, Chile, Paraguay and Uruguay. The project will be executed over 2005-2008 and specifically targets rehabilitation works in high priority provincial roads along the interurban primary paved network. Works also include widening provincial roads that connect industrial zones with production and consumption centers; rehabilitating access roads to some ports and localities; enhancing intersections in high-traffic roads; and implementing a maintenance program for provincial roads. Works aim to expand water and sewerage service to approximately 500,000 low-income people living within Buenos Aires' greater metropolitan area. Money will help finance a series of drainage projects in urban and periurban areas to mitigate the effects of flooding. "With 50% of the people lacking access to potable water and only 25% being connected to a proper sewerage system, it is key to implement this loan in order to improve the provision of basic services and enhance living conditions in the province," said Maria Marcela Silva, WB co-task manager for the project. "The project also tackles inadequate urban and drainage planning... that generates recurring flooding problems in urban areas with high social and economic costs," Silva said. The US$200 million single-currency, fixed spread loan has a repayment period of 12 years, including four years of grace.