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July 11 2006 - The World Bank's Board of Executive Directors today approved a US$75 million road infrastructure and maintenance loan for the Province of Cordoba in Argentina.
The loan will support road infrastructure improvements and finance road asset maintenance in the Province, thereby boosting competitiveness and economic growth. Likewise, it will strengthen local institutional capacity in strategic planning, especially in the road sector, by promoting the efficient use of financial and economic resources. The project will also ensure the sustainability of road investments and the preservation and maintenance of the existing road network.
"This loan introduces the implementation of rehabilitation and maintenancecontracts by means of service level contracts," said Pierre Graftieaux, World Bank task manager for the project. "The project is consistent with Argentina's road infrastructure funding policy developed with World Bank support."
Currently, the Bank funds several operations that are promoting greater public expenditure efficiency and sustainability in road infrastructure, including, among others:
--National Highway Asset Management Project - US$200 million, at the country level.
--Provincial Roads II Project - US$150 million.
--Buenos Aires Province Sustainable Investment Development Project - US$200 million.
The Government and the World Bank are placing high emphasis on infrastructure projects - including those in the road infrastructure area¡ª within the project portfolio of the new World Bank country strategy for Argentina (Country Assistance Strategy or CAS) for the 2006-2009 period.
The US$75 million fixed-spread loan for the Province of Cordoba is repayable in 13.5 years, including a six-year grace period. The project's total cost is US$96.27 million and includes matching funds amounting to US$21.27 million provided by the Province of Cordoba.
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