Argentina to Advance Sustainable Urban Development with IDB Support

WASHINGTON - The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved a Conditional Credit Line for Investment Projects for up to $700 million to help Argentina improve the living environment and sustainable development of its cities.

The program will expand access to basic services and promote territorial cohesion in the provinces for more productive, orderly urban development centered on improving living conditions for the population. The credit line will directly benefit over 100,000 households throughout the country, and indirectly benefit over two million people.

The Board has approved an initial $150 million individual loan under this credit line to support urban development in the Province of Neuquén. Neuquén was chosen for the first operation because of its challenges from rapid population growth, which has deepened gaps in access to basic services for its residents and drives informal urban development.

The first loan will finance works to expand basic services such as water, sewerage, and electricity, as well as urban infrastructure such as roads, public spaces, and community facilities. The program will also bring formal planning to low-income informal neighborhoods and land ownership. Additionally, it will bolster local institutions and governments by training specialized personnel in urban planning, among other measures.

The operation in the Province of Neuquén will contribute directly to the well-being of 23,000 households, while benefiting over 98,000 households indirectly, in both informal, working-class neighborhoods and more established neighborhoods with infrastructure gaps.

This project is part of the Bank's support outlined in the new 2025-2028 Country Strategy for Argentina, whose third pillar seeks to support vulnerable populations in reducing poverty, with an emphasis on improving urban conditions and access to essential services.

The IDB loan has a 25-year repayment term, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).