The Inter-American Development Bank (IDB) has approved a Conditional Credit Line for Investment Projects of up to $524.3 million for Argentina, which will finance a program designed to boost capacity and improve safety on the Cristo Redentor System Corridor on the border with Chile.
As part of this credit line, the IDB has approved a first individual loan of up to $200 million that will finance a capacity increase and improved safety on the Cristo Redentor border crossing, including a variant in the Mendoza region.
The goal of the credit line is to help enhance cross-border integration between Argentina and Chile by reducing travel time and costs along the Cristo Redentor System Corridor. The idea is to provide transport infrastructure and a border integration system that facilitates regional connectivity.
The Cristo Redentor border crossing connects Mendoza with region V of Valparaiso in Chile. It sees the largest volume of heavy goods vehicles with 40 percent trucks and accounts for 77 percent of all highway trade along the border with Chile.
The viability of the system is affected by frequent interruptions caused by bad weather and heavy traffic in urban areas and at border crossings. The system is also hampered by a large number of serious road accidents, some of them causing fatalities.
The first operation will finance construction of public works, mitigation of socio-environmental factors and the acquisition of land, including the building of variants to urban areas, the boosting of road capacity, rectification of curves and safety-oriented works. It will also finance development of capacity and pre-investment, as well as strengthen the National Highway Directorate in areas related to inspection and oversight of construction projects.
The program will provide direct benefits to 2.3 million people a year, including those traveling by car, truck drivers and others involved in the logistics chain of exports and imports along the Cristo Redentor System Corridor. It will also benefit indirectly 920,896 inhabitants of cities in Mendoza though the socioeconomic impact of the project.
The credit line of up to $524.3 million is being matched by a local contribution of $222.6 million.
The first loan as part of the credit line – up to $200 million – is over 25 years, with a grace period of five and a half years and an interest rate based on the LIBOR. The local contribution is $15 million.
About the IDB
The mission of the Inter-American Development Bank is to improve lives. Founded in 1959, the IDB is one of the main sources of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides consulting services about policies, technical assistance and training to public and private clients across the region.
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