ARGENTINA - INTEGRATED WASTE MANAGEMENT FL

The operation, structured as a Framework Loan (FL), will finance an integrated waste management programme including the collection, treatment and disposal of municipal waste generated and the rehabilitation of dumpsites in several provinces throughout the Republic of Argentina, presumably in Santiago del Estero, Buenos Aires, Rio Negro, Salta and Santa Cruz.

The overall objective of this project is to improve the actual waste management system in Argentina. Precisely, it aims to develop the solid waste management system of several provinces and to strengthen the material recovery (recycling and composting) of solid waste generated in those provinces including social inclusion of the waste pickers. Furthermore, it will contribute to close / rehabilitate the unsanitary dumpsites. The project is aligned with the principles of the Paris Agreement and will contribute to achieving the UN Sustainable Development Goals.

The EIB loan will provide long-term finance for an integrated waste management programme in the Republic of Argentina. The programme comprises the collection, treatment and disposal of municipal waste; as well as the rehabilitation of dumpsites in several provinces.

The fact that the service is not delivered through a network limits the Promoter's ability to recover full costs. The EIB will provide long-term financing for the economic life of the assets that would not be available on the market. The EIB's contribution is an important element of the overall financing plan in terms of additionality, diversification as well as duration and pricing. The EIB financing will help to reduce negative externalities affecting environmental protection and public health, while strengthening the recycling performance of the targeted regions. Negative externalities related to waste management activities concern pollutants and greenhouse gas emissions, as well as costs related to damage to environmental protection and public health.

EIB's involvement will complement the financing provided by other International Financial Institutions, therefore facilitating the financing of the full programme. Furthermore, the Promoter will apply EIB's policy standards in terms of procurement, and environmental and social aspects, thus ensuring compliance with best international practice. In partnership with the Inter-American Development Bank, EIB will undertake efforts to deliver advice to the Promoter with a view to achieving sound project implementation and operation of the assets to be financed.

This operation is in line with the strategic priorities of the Republic of Argentina, as well as with the European Union's priorities for Argentina (the Team Europe Initiative refers to Sustainable waste management as one of its objectives). Therefore, it is eligible under the NDICI Global Europe mandate as it contributes to climate action and to the development of social and economic infrastructure.

The EIB will require the Promoter to ensure that the implementation of the project will be done in accordance with the EIB's Environmental and Social Principles and Standards.

The EIB will require the Promoter to ensure that the implementation of the project is carried out in accordance with the EIB's Guide to Procurement.

This operation is in line with EU priorities for Argentina and eligible under the Neighbourhood, Development and International Cooperation Instrument (NDICI).