The Inter-American Development Bank (IDB) approved a line of credit of up to $810 million for Argentina's water resources management and water security program.
The IDB credit line provides for three individual loan operations over a 12-year period. Its multipurpose approach covers water for human consumption, industry, energy, irrigation and livestock, as well as adaptation to the impacts of climate change.
The first operation will finance a project to improve access to drinking water for 456,000 people in priority watersheds and supply drinking water to 122,000 households in Argentina's provinces. The IDB will lend as much as $210 million under this first operation, with a local partner contribution of up to $40 million.
This first loan is also designed to benefit farmers and ranchers by supplying them with water. It also includes support for five water management agencies to ensure long-term water security in areas benefitting from the operation.
The loan is aligned with several pillars of the IDB Group's 2021–2023 Strategy with Argentina: climate change, poverty reduction, protection of the most vulnerable, economic recovery, and productive development. It contributes to these pillars by improving access to and delivery of basic services and streamlining natural disaster risk management.
This operation is also in keeping with the Vision 2025 - Reinvesting in the Americas: A Decade of Opportunity, which is the IDB’s roadmap to recovery and inclusive growth in Latin America and the Caribbean. The Vision 2025 priorities addressed by the loan are economic integration; micro-, small-, and medium-sized enterprise development; gender and inclusion; and climate change.
The IDB has extensive experience in integrated water resources management programs in Argentina, with a current portfolio of 10 operations worth a total of $2.199 billion, of which 40% has been disbursed.
The IDB's $210 million loan to Argentina has a 25-year repayment term, a 5.5-year grace period, and an interest rate based on SOFR.