World Bank loan to improve road network Argentina
Argentina: World Bank Approves US$126.7 Million to Improve Vital Road Network in the Province of Santa Fe
Washington, United States of America – The World Bank’s Board of Directors 2007-02-13 approved a US$126.7 million loan to Argentina to improve transport conditions of a strategic road network that links the Province of Santa Fe with regional and international markets.
“Roads are a critical element of the transportation network in the Province of Santa Fe, accounting for nearly 80 percent of total freight volumes. Limited capacity of key road corridors affects the competitiveness of the agro-businesses industry and other exports from the province. This has significant relevance given that Santa Fe accounts for 42 percent of Argentina’s agro-industrial exports,” said Axel van Trotsenburg, World Bank Director for Argentina, Chile, Paraguay and Uruguay. “Improving efficiency in the road sector is crucial. This project will improve National Road 19, reducing logistics costs and facilitating access to major regional consumption and export markets.”
The project will also foster the effective economic integration of the provinces in Argentina’s Center Region. This region, which includes the provinces of Córdoba, Entre Ríos and Santa Fe, currently accounts for 20 percent of the Argentine population, 30 percent of exports, 40 percent of total agricultural and livestock activity, and 25 percent of Argentina’s GDP.
The Province of Santa Fe Road Infrastructure Project will support the following activities:
- 1. Upgrading of National Road 19: This component will transform 130 kilometers of National Road 19 in the Province of Santa Fe into a four lane highway with separate two lane carriageway in each traffic direction to expand the capacity and road safety of this heavily traveled corridor;
- 2. Institutional strengthening: This component will support road safety and capacity building efforts under the Project Implementation Unit, Ministry of Finance, Ministry of Public Works and Provincial Road Agency, as well as logistics, planning and environmental studies.
“Traffic levels along National Road 19 in the territory of the Province of Santa Fe have grown by 40 percent between 2003 and 2006,” said Tomás Serebrisky, World Bank task manager for the project. “This project will directly support the province’s strategy to improve the condition of the road network by facilitating traffic flows along one of the major regional road corridors crossing the province.”
The US$126.7 million single currency, fixed-spread loan is repayable in 15 years, with five years of grace.
For more information on the Province of Santa Fe Road Infrastructure Project, please visit: web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P099051
For more on the World Bank’s work in Argentina, please visit: www.worldbank.org/ar