The Inter-American Development Bank (IDB) has approved a Conditional Credit Line for Investment Projects of up to $700 million to support Argentina in improving urban living conditions and promoting sustainable development in its cities. The program aims to expand access to basic services and foster territorial cohesion across provinces, supporting more productive and orderly urban growth while enhancing the quality of life for residents. It is expected to directly benefit over 100,000 households and indirectly reach more than two million people nationwide.
An initial $150 million loan under this credit line will finance urban development in the Province of Neuquén, selected due to challenges arising from rapid population growth that have increased gaps in access to essential services and driven informal urban development. The loan will fund the expansion of basic services such as water, sewerage, and electricity, as well as urban infrastructure including roads, public spaces, and community facilities. The program also aims to formalize low-income informal neighborhoods, improve land ownership, and strengthen local institutions by training personnel in urban planning and management.
In Neuquén, the project will directly benefit 23,000 households and indirectly support over 98,000 households across both informal and established neighborhoods with infrastructure deficiencies. By improving urban planning, infrastructure, and services, the program seeks to enhance the well-being of residents and reduce disparities in access to essential amenities.
This initiative forms part of the IDB’s 2025–2028 Country Strategy for Argentina, which focuses on supporting vulnerable populations and reducing poverty through improved urban conditions and access to essential services. The loan has a 25-year repayment term, including a 5.5-year grace period, and carries an interest rate based on the Secured Overnight Financing Rate (SOFR).
