Argentine capital to invest US$1bn in infrastructure in 2017-19

Argentine capital Buenos Aires will invest US$1bn to carry out a range of infrastructure projects in 2017-2019, the city's finance minister, Martín Mura was reported as saying by local daily La Nación.

The projects to be carried out under this initiative include the Arroyo Vega basin project (US$200mn), which is aimed at preventing flooding in the Belgrano neighborhood of the city. This initiative is being partially financed by the World Bank and is expected to be completed by 2019.

Other initiatives include the US$170mn urbanization plans for the Villa 31 slum, the US$400mn Paseo El Bajo highway, a US$100mn project to build a school in Villa 31 and construction of new head offices for the education ministry, the US$50mn village for the Youth Olympic Games and a US$50mn bus corridor between Alem and Paseo Colón avenues.

Funding for these projects will come mostly from the Inter-American Development Bank (IDB) and the Latin American Development Bank (CAF).

DEBT

In addition to this, authorities will work to improve the city's finances by reducing the proportion of its debt denominated in US dollars, according to Mura.

The minister said that the city will aim to have 50% of its debt denominated in Argentine pesos and 50% in US dollars by 2019. Currently, bonds issued in dollars make up 95% of the total.

Buenos Aires bonds have an 'AA+' rating from agency Fitch Ratings. The city's total debt is close to US$2.8bn.