The World Bank Board of Directors approved two loans totaling US$395 million today to continue with the construction of sanitation infrastructure in the Matanza-Riachuelo river basin and to support Buenos Aires Province in the implementation of the social tariff for electricity.
"With these loans, the World Bank is reaffirming its long-term commitment to Argentina supporting initiatives that improve the living conditions of vulnerable people. In difficult times, it is especially important to protect poor households by ensuring that families in need have access to affordable basic services, such as electricity," said Jordan Schwartz, World Bank Director for Argentina, Paraguay, and Uruguay. "At the same time, we continue to support the infrastructure works in the Matanza-Riachuelo river basin, the largest sanitation project in Latin America, which will reduce pollution and improve the quality of life of residents of the basin."
The Sustainable Development Project of the Matanza-Riachuelo River Basin will receive financing of US$245 million to complete construction of the sewer on the left bank of the river, the Rio de la Plata river sewer line and the Sudoeste sewage treatment plant. The project will also support other works to ensure that 50,000 vulnerable individuals in the basin can access basic water and sanitation services.
The project Support to the Transition of the Social Tariff for Electricity in Buenos Aires Province, for US$ 150 million, will guide the transition of the subsidy from the national to the provincial level as well as improve the identification and monitoring of beneficiaries to guarantee that the most vulnerable population is covered. Currently, the social tariff reaches 1.4 million users in the province. One project objective is to complete the registration of 28 percent of users in Buenos Aires, or some 1.7 million people, to determine their eligibility for the social tariff program. The project will also implement energy efficiency measures and strengthen institutional capacities at the provincial level.
The additional financing of the Sustainable Development Project of the Matanza-Riachuelo River Basin is a flexible loan with a variable spread, which matures in 31.5 years and has a seven-year grace period.
The Support to the Transition of the Social Tariff for Electricity in Buenos Aires Province has a flexible loan with a variable spread, which matures in 31.5 years and has a five-year grace period.