Argentina gives backing for Santa Fe waterworks loan

Argentina's federal government has given the green light to the Santa Fe provincial government to proceed with negotiations for a US$100mn loan from the Abu Dhabi Fund for Development (ADFD), local newspaper El Ciudadano reported.

The financing will go towards the second stage of the Desvío Arijón water system, an interconnected network of water pipelines that draw from the Paraná river and which supplies over 360 population centers.

The approval from Argentina's federal government is not the final guarantee needed to secure the loan, although it is a concrete step needed to continue the negotiation process, Santa Fe's finance minister Gonzalo Saglioni was quoted as saying by the daily.

Once the loan conditions are agreed, Santa Fe's finance ministry will then give final approval, the daily said.

The first stage of Desvío Arijón, which was completed in late-2015 and began ramping up shortly thereafter, entailed construction of the system's pumping stations, water intake, a potable water treatment plant and water transfer lines.

The investment in the first stage was roughly 500mn pesos (US$32.5mn), where local companies Brajkovic, Semac Construcciones and Pecam carried out the works as a temporary business union.

The second phase consists of extending pipelines to further localities, including Matilde, Sa Pereyra, Angélica, Susana, Sunchales, Rafaela and San Carlos.

ADFD is a bilateral institution established by the OPEC Fund for International Development (OFID).

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