IDB Inter American Development Bank : Argentina’s metropolitan area to improve drinking water and sanitation services with IDB support

$320 million loan to benefit 11 million people living in Buenos Aires and its environs

The Inter-American Development Bank (IDB) has approved a $320 million loan to support Argentina's efforts to improve and enhance drinking water and sanitation services in the metropolitan area comprising Buenos Aires City and its suburbs, benefiting 11 million people.

This third operation for the metropolitan area -which includes the country's capital and 17 adjacent municipalities- will help enhance the water potability and distribution system's reliability, reduce leaks, and expand sewerage services and the wastewater treatment capacity.

The works, to take place in the area covered by the state-run company Agua y Saneamientos Argentinos, S.A. (AySA), will include:

• Renovating and improving the General San Martin drinking water treatment plant in the northern suburbs, which will require a $75 million investment.
• Renovating 130 km of water pipes ($35 million).
• Enhancing the Planta Norte wastewater treatment plant ($99 million).
• Expanding the Hurlingham, Moron and Ituzaingo districts' sewer network by 170 km ($90 million).
• Installing an 80 km sewage pipeline in the north western district of Escobar ($45 million).

The project will provide new or improved drinking water services to 120,000 homes, whereas the population equivalent of 100,000 households will receive wastewater treatment services.

The program will also include the installation of water meters in five high population density districts, a move expected to produce major consumption savings. Metering, combined with water pressure regulation in the five districts, is expected to cause a 40 percent decline in water loss, resulting in savings to the tune of 5,900 cubic meters a day.

The $320 million loan, from the Bank's ordinary capital, is for a 25-year term, with a 4.5-year grace period and Libor-based interest rate. The Government of Argentina will provide an additional $80 million in local counterpart funds.

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-term financing for economic, social and institutional development in Latin America and the Caribbean.The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.