IDB Signs Peru, Argentina Loans

The IDB has agreed just over $500m in loans for Peru and Argentina. The package includes a $200m loan to expand potable water and sanitation services in the Buenos Aires metropolitan area and suburbs, to be executed by Agua y Saneamientos Argentinos. It is the first loan from a $720m conditional credit line for investment projects, and the project is part of a wider expansion program which seeks to add 1.5m users to the water service and 1.4m to the sewer system between now and 2011. Separately, the IDB is helping Peru’s SENASA plant and animal health service carry out a $305m investment program designed to raise the competitiveness of agriculture. The deal includes a $175m 15-year conditional credit line, including an initial loan of $15m and Peru’s government will contribute $130m.