The Inter-American Development Bank approved a $ 300 million line of credit improve the integration of the countries located in the Cuenca del Plata, through actions in sustainable infrastructure, trade facilitation and urban development in border areas.
La Cuenca del Plata includes the basins of the Paraná, Paraguay, Uruguay and La Plata rivers. It covers 3.2 million square kilometers and is home to more than 130 million people in Argentina, Bolivia, Brazil, Paraguay and Uruguay. The region’s hydrocarbon and mining operations, retail and agro-industry generate nearly 80 percent of the country’s GDP.
the Conditional line of credit for projects (CCLIP) is an instrument for financing one or more sectors with the aim of making loan preparation and approval processes more agile.
The line of credit will start with a first transaction of $ 100 million. Its objective is to improve the capacities of the logistics and transport infrastructures of the Cuenca countries, by improving urban development in border areas and by strengthening the capacity of the Financial Fund for the Development of the Plata Basin (FONPLATA, for its Spanish acronym. ), among others.
This first CCLIP operation will aim to reduce vehicle operating costs and travel times, and increase the number of loan executing agencies trained in project design and supervision, and integration. cross-cutting themes of gender, diversity and climate change.
The vast majority of integration projects of multilateral development banks respond to national programs. CCLIP will exploit the comparative advantages of FONPLATA to design and implement small-scale projects, preferably by sub-national entities, with the aim of facilitating the integration of countries into the global economy.
FONPLATA will be responsible for supervising the sub-loans, which will be granted according to the eligibility standards previously agreed with the IDB. For example, eligible projects cannot exceed $ 50 million for infrastructure, $ 30 million for urban development and $ 10 million for integration, rural development and tourism.