2023-08-10 16:26:56
The Government approved the model loan contracts from international organizations for US$300 million, which will be used to finance infrastructure works. These are credits granted by the International Bank for Reconstruction and Development (BIRF) for US$200 million and the Development Bank of Latin America (CAF) for US$100 million, whose approval was formalized through two decrees published this Thursday in the Official bulletin.
Through Decree 410/2023, the Government approved the CAF loan to partially finance the Productive Rural Roads Program, intended to contribute to the connectivity of the Provincial Road Network or the Municipal Road Network and thus facilitate territorial integration of the country and the federal connection.
This loan will have a term of 15 years, including a grace period of 66 months (four and a half years) and a rate equivalent to the SOFR -published by the New York Federal Reserve- currently at 4.96% per year, plus a margin of two percentage points.
Meanwhile, Decree 411/2023 authorized the IBRD loan to finance the Climate Resilient Infrastructure Project for Urban Flood Risk Management, which aims to reduce the risk of flooding in selected cities and act effectively in the event of of a crisis or emergency.
It is a loan with a term of 25 years and will begin to be paid from 2030, with a rate to be defined. The project foresees the execution of four parts: Climate-resilient infrastructure for flood risk mitigation and adaptation in critical cities, Institutional Capacity Improvement and Vulnerability Reduction, Project Management and Emergency Response Contingent Component.
Its execution and the use of the resources of the loan granted by the Bank will be carried out by the Ministry of Public Works, in accordance with the official text.
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