Program will promote development and competitiveness

The Inter-American Development Bank today announced the approval of a US$100 million loan for a multiphase program for the development of basic infrastructure  to support production in province of Entre Ríos, Argentina.

This program will promote the development and competitiveness of the economy of Entre Ríos, situated etween the Paraná and Uruguay rivers in the Argentine Mesopotamia.

The first phase of the program will focus on basic economic infrastructure -roads, electricity and ports-- to support production and related activities to promote development of the local productive sector. The program will also finance institutional strengthening and improvements in the management capacity of sector agencies.

"The project will help increase the competitiveness of the productive sector due to lower transaction costs associated with road transportation; increased production due to greater regional connectivity; and availability of electric power in areas in agroindustrial expansion," said IDB project team leader Vera Lucia Vicentini. "The consolidation of supply chains will allow a change in the productive profile and the growth of business opportunities."  The Ministry of Economy of Entre Ríos will carry out the program.

The loan is for a 25-year term, with a four and a half year grace period, at a variable interest rate. Local counterpart funds will total US$25 million.