Argentina: EIB to support sustainable infrastructure projects in Buenos Aires and a Waste Management programme in the Jujuy province
- Nov 29, 2018
The EIB signed three contracts providing for financing totaling USD 229 million, including a USD 104 million loan for upgrading the Metro de Buenos Aires, a USD 80 million loan for a Water and Sanitation project and a guarantee for an Integrated Waste Management project in Jujuy (USD 45m).
- The European Investment Bank (EIB) signed three contracts providing for financing totaling USD 229 million, including a USD 104 million loan for upgrading the Metro de Buenos Aires, a USD 80 million loan for a Water and Sanitation project and a guarantee for an Integrated Waste Management project in Jujuy (USD 45m).
The European Investment Bank (EIB) signed three agreements today to support infrastructure projects across the country, including investments for water and sanitation services, sustainable transport, and waste management.
Today in Buenos Aires, EIB President, Werner Hoyer, signed the finance contract for a Water and Sanitation Project as well as a Guarantee Agreement for a waste management project in Jujuy with Minister of Finance Nicolas Dujovne. In addition, President Hoyer signed the finance contract for a loan to support the Metro de Buenos Aires project with Minister Martin Mura from the City of Buenos Aires.
Commenting on the projects during the G20 Summit in Argentina, EIB President, Werner Hoyer said: “Investing in sustainable infrastructure is crucial for tackling climate change. The European Investment Bank is delighted to support these sustainable projects in Argentina which will improve people’s lives by providing better urban transport, improved water and sanitation services and solid waste management. These projects will also contribute to climate change mitigation - one of the EIB’s strategic operational priorities, demonstrating the role that we can play together to create sustainable futures in the region.”
Commenting on the financing operation, Argentinian Minister of Finance, Nicolas Dujovne said: “This type of financing allows Argentina to continue on the road to development. Since we made this commitment we have kept our promise to improve the quality of life of Argentinians and with the signature of these agreements we are confirming this again.”
Commenting on the financing operation, European Union Ambassador to Argentina, Aude Maio-Coliche said: “The interest of the European Union in Argentina is evidenced by concrete facts for the people: the European Investment Bank finances the optimization of solid waste management in Jujuy, the improvement of water treatment in Buenos Aires and the modernization of the subway. In addition, to address the social component of these projects, the European Union accompanies the investment with a grant of EUR 11 million.”
The Water and Sanitation project loan will support water and sanitation investments in Buenos Aires, which will bring about significant social and environmental benefits and contribute to mitigate climate change through the reduction of greenhouse emissions. The project includes the extension of a sewer network and a wastewater treatment plant as well as the upgrade of a water treatment plant in the metropolitan area of Buenos Aires. By increasing access to sanitation and the reuse of biogas, the project will improve public health, especially for low-income and vulnerable groups and protect the environment by reducing discharges of untreated effluents in surface waters.
The Metro de Buenos Aires rehabilitation loan will support investments aimed at improving the metro network, including upgrades in signaling system, the power supply and improvements in the station ‘9 de Julio’. The ambitious modernisation programme will contribute to improving public transport, environmental sustainability and mitigation of climate change.
The EIB also signed a guarantee contract which unlocks EIB financing of USD 45 million for an Integrated Waste Management Programme to improve the collection, treatment and safe disposal of municipal solid waste, whilst helping to create employment opportunities for waste pickers.
The EIB also signed, together with Agence Française de Développement, a letter of intent whereby it signaled its interest in starting its due diligence on a Distributed Solar Power Generation Programme in the Jujuy Province, involving the construction of 15 photovoltaic parks providing a cleaner source of energy.
The EIB in Latin America
The European Union is the main partner for the development of the Latin American region, its number one investor and second biggest trade partner. The EIB, as the EU bank, provides economic support for projects in Latin America by facilitating long-term investment with favorable conditions and by providing the technical support needed to ensure that these projects deliver positive social, economic and environmental results.
Since the EIB began operating in Latin America in 1993, it has provided total financing of EUR 8.2 billion to support 110 projects in 14 countries in the region. In 2017, the EU bank provided EUR 642 million in Latin American funds which have facilitated the development of 9 projects in Argentina, Bolivia, Nicaragua, Paraguay, Mexico, Panama, and Peru, in sectors as diverse as energy, transport, water infrastructure, climate action and assistance for small and medium-sized enterprises.
The EIB operates in Latin America primarily under the “External Lending Mandate (ELM)” which benefits from an EU guarantee to support EIB financing operations for projects outside the Union. The EU guarantee covers risks of sovereign or sub-sovereign nature and defines three high-level objectives in Latin America: local private sector development, development of social and economic infrastructure, and climate change mitigation and adaptation.