The directory of CAF (Development Bank of Latin America and the Caribbean) approved a Loan for up to US $ 1550 million to finance the “Sustainable Aqueduct System of the Province of Chubut”an initiative that will directly benefit the cities of Sarmiento, Comodoro Rivadavia, Rada Tilly and Caleta Olivia. The credit agency’s decision is part of a financing plan for U $ S5.2 billion for several countries in the region.
The loan that the province of Chubut achieved aims to ensure the supply of drinking water in the Senguer river basin, optimizing the efficiency of the system and promoting the conditions for the sustainable development of the Patagonian province.
Chubut gets coffee loan of $ S150 million for aqueduct works
The aqueducts that run between Lake Musters and Comodoro Rivadavia and surrounding populations, with a total length of more than 200 kilometers, need to be optimized. The system combines an old aqueduct, erected in 1966 and a new one, from 1999, operating in parallel to transport drinking water to the distribution centers.
Within the framework of this sustainable and resilient intervention, it is planned to undertake resilient infrastructure works, which include the construction of a new conduction of approximately 41 kilometers in length, a new high voltage area line, the rehabilitation of pumping stations and the construction of two water reservoirs, among others. Additionally, a component aimed at strengthening the capacities of provincial entities linked to the sector and to accompany the executing agency in the development of the necessary capacities for the correct execution of the operation is structured.
Among some of the expected benefits, improvements in continuous, safe and quality access to drinking water, the revitalization of local economies, territorial roots, the reduction of water losses and the reduction of the carbon footprint of the system are improved. Additionally, this operation is eligible as green financing, in about 70%.
The province of Chubut, recognized for its strategic position in the Argentine Energy Matrix in its hydrocarbon resources and wind and solar energies within the framework of its Chubut 2050 plan, will significantly strengthen its water infrastructure with this investment.
“This program represents a fundamental step towards the water security of a strategic region for Argentina,” said Sergio Díaz-Granados, executive president of CAF. “The modernization of the Aqueduct System will not only improve the quality of life of hundreds of thousands of people, but also strengthen the productive capacities of a key province in the country’s energy matrix. In CAF we firmly believe that continuous and safe access to drinking water is a fundamental right and an engine of sustainable development,” he added.
The Corporate Vice President of Strategic Programming of CAF, Christian Asinelli also participated in the board of directors.
CAF approves US $ 5,200 million for sustainable development and incorporates two new countries
In a historic Board Meeting of the CAF, a record of US $ 5,200 million for 16 operations in 10 countries in the region was approved, which will be used for infrastructure projects, climate action, human development, urban mobility and energy transition. The institution continues to expand in Central America and the Caribbean with the inclusion of Guatemala and Santa Lucía, the conversion of Barbados to a Member Country and the expansion of Capital of Antigua and Barbuda.
Funds approved by CAF will be allocated, among others, to the modernization of critical infrastructure, such as the Chilean rail network and aqueduct systems in Argentina; to the impulse of the energy transition, with projects such as the Chichas Solar Plant in Bolivia and the modernization of the electricity sector in Bahamas; to the strengthening of climate action and environmental conservation, such as the biodiversity program in Colombia and forest management in Panama; to the improvement of essential social services, including mental health in Colombia and prison systems in Peru; to the promotion of sustainable mobility, with investments in Bogotá and Lima; and to support SMEs in Paraguay, facilitating their access to financing.
“This has been a historical directory. Never before had CAF approved as many credit operations, or such a high amount to finance the integral development of Latin America and the Caribbean. This shows that the institution is filling financing gaps and is consolidating as the multilateral leader in the promotion of progress and well -being for all citizens. In addition, the incorporation of Guatemala and Santa Lucía expands our geographical scope deepen regional integration, “said Sergio Díaz-Granados, executive president of CAF.
Regarding the incorporation of new countries, the approval of the Board of Directors marks the beginning of the formal process so that Guatemala and Santa Lucía become shareholders. As shareholders of the “C” series, both countries will have access to financial, technical and knowledge services of CAF, designed to support their development priorities and improve the quality of life of the population. This further reinforces the relationship of CAF with Central America and the Caribbean, and reaffirms the bank’s commitment to the sustainable and inclusive development of the region.
These are some of the operations approved in the CAF Board of Directors:
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Improvement of the Aqueduct System of the province of Chubut. CAF approved a 150 million loan to finance the “Sustainable Aqueduct System program of the province of Chubut”, an initiative that will directly benefit the cities of Sarmiento, Comodoro Rivadavia, Rada Tilly and Caleta Olivia.
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Construction of the Chichas Solar Plant in Bolivia. CAF approved USD 110 million financing for the development of the Chichas Solar Plant, a renewable energy project that reinforces Bolivia’s commitment to energy transition and environmental sustainability.
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Modernization and expansion of the Chilean Railway Network. In a decision that reaffirms its long-term commitment to the development of sustainable infrastructure in Chile, the CAF-Banco de Development Board of Latin America and the Caribbean approved a second phase of financing for up to USD 700 million to the company of the State Railways (EFE).
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Support to reform the energy sector in Bahamas. This is the first financing (USD 100 million) that the country receives since it became a CAF shareholder and will support the modernization of electrical infrastructure, the expansion of renewable energy, and will improve the affordability and energy resilience for households and bahameñas companies.
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Impulse to climate action in Colombia. CAF approved a loan of USD 350 million to finance the “Program for the Support for Climate Action, Sustainability and Biodiversity” and accompany the Colombian government in its comprehensive strategy against climate change, environmental and biodiversity protection, as well as the promotion of sustainable finance. This program will strengthen the country’s capabilities to face climate challenges while preserving its invaluable natural heritage.
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Improvement of access to mental health services in Colombia. CAF approved a 150 million loan for Colombia to improve access and quality of mental health services, to prioritize primary care and reduce gaps in the guarantee of the right to health in vulnerable populations, rural areas and historically excluded communities.
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Support to the Aerocivil Investment Plan in Colombia. CAF approved a USD 240 million corporate loan to support the financing of the Aerocivil Aerocivil Strategic Investment Plan in Colombia, which aims to modernize the air navigation infrastructure and airport services in priority regions of the country. The new infrastructure will strengthen the key role that Colombia plays in the intra -regional connection of flight operations and strengthen the area of the Latin American countries.
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Improvement of urban mobility in Bogotá. CAF approved a loan of USD 200 million to finance sustainable mobility projects in Bogotá, as part of the Capital District Investment Plan. These resources will specifically support the initiatives of the District Development Plan 2024-2027 “Bogotá Safe”, which seeks to improve the quality of life of citizens through a safer, inclusive and sustainable mobility system.
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Improvement of the management of Panama forests. CAF approved a Credit of USD 300 million for Panama with the aim of improving forest management and supporting the continuity of policies that promote sustainable management of forests, conservation of ecosystems and green financing.
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Sustainable infrastructure projects throughout the region. CAF approved a non -revolving credit line of USD 250 million to partially finance the Sacyr Group Investment Plan in Sustainable Development Projects in CAF member countries. Financing may be used for various initiatives such as sustainable infrastructure construction, drinking water and basic sanitation, social infrastructure (hospitals and educational centers), waste management solutions, circular economy, green businesses and financial inclusion, among others.
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FIRST GREEN CREDIT OF CAF, FOR COSTA RICA. CAF approved a contingent, revolving and not compromised credit line in favor of the Republic of Costa Rica for up to USD 500 million. This operation is the first green liquidity line approved by the institution and the first operation of this type for Costa Rica as a member country.
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Historical program to modernize the Justice and Penitentiary System of Peru. CAF approved a credit line for USD 800 million to finance the “Program for the Improvement and Closing of the National Penitentiary System” of Peru, the most ambitious in its kind in South America, which seeks to radically transform the conditions of people deprived of liberty in the country.
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Support for SMEs in Paraguay. CAF approved the renewal and increase of the revolvent credit line and not compromised in favor of the Financial Development Agency of Paraguay (AFD) for up to USD 100 million, doubling the current amount of USD 50 million. This decision, taken by the Board of the Institution, seeks to strengthen economic development and productive investment in Paraguay, with special emphasis on financing to small and medium enterprises.
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Expansion of access to natural gas in Lima and Callao. CAF approved an A/B loan up to USD 500 million for natural gas from Lima and Callao (Calidda). Calidda is the main natural gas distribution company in Peru, and currently facilitates access to a cleaner, safer and economical energy source for approximately 9 million people in Peru.
Source: Ambito
