CAF-led Digital Inclusion, Education Reform and Urban Infrastructure to Benefit 12 million Argentines

In an effort to improve the quality of life of more than 12 million Argentines with initiatives that promote digital inclusion and modernization, educational transformation and development of local urban infrastructure, the Board of CAF—development bank of Latin America—approved three credit operations in favor of Argentina totaling USD 544 million.

“Investment in high-capacity, high-quality digital connectivity infrastructure to move towards the effective closure of the digital divide and open up opportunities for digitalization in remote areas, technological equipment, roads, sewerage, wastewater treatment, and in improving the development of human capital, strengthening the education system from early childhood, basic and middle education, to occupational training and its links to the innovation ecosystem; represent an important opportunity to enhance Argentina’s development by promoting inclusion and equality,” said CAF executive president Luis Carranza Ugarte.

The first operation, for USD 243.8 million, will help complete satellite broadband Internet coverage in hard-to-reach areas in Argentina and partially in neighboring countries based on the development, manufacturing, launch and orbiting, as well as the investment needed for the proper operation of the ARSAT-SG1 geostationary satellite. This operation is expected to benefit 200,000 rural households in Argentina and 80,000 rural households in Bolivia, Chile and Paraguay, which translates into reliable and high-quality internet access for approximately 996,000 residents.

ARSAT-SG1 will be the first Argentinian Ka-band high-throughput satellite (HTS), which will have a data traffic capacity greater than 50 Gbps. In addition, the new platform will incorporate the main global technological trends of the space industry for telecommunications, such as electric propulsion. Some 80 technology-based SMEs located mainly in Bariloche, Córdoba, Buenos Aires, Bahía Blanca and Mendoza are expected to participate in the implementation of this initiative.

Its launch is scheduled for 2023, and when fully operational, it will provide high quality satellite broadband connection in remote sites with full coverage in Argentina and partial coverage in neighboring countries, at affordable prices, providing benefits in access to public services, and revenues derived from greater efficiency and the use of digitalization for competitiveness and productivity, among others.

During the 170th CAF Board meeting, held online, a credit was also approved for USD 100 million for the “Santa Fe + Conectada” Digital Inclusion and Educational Transformation Program, which calls for expanding and modernizing the infrastructure of the connectivity system of the Province of Santa Fe to provide a high-quality internet service promoting digital inclusion, educational transformation, bridging technological gaps and the efficient provision of public services.

The “Santa Fe + Conectada” Program will help extend 3,400 kilometers in the provincial fiber optic network, providing broadband coverage to 53% of all municipalities and benefiting approximately 95% of Province residents; the modernization of the infrastructure of the provincial education system through the construction and furnishing of 17 kindergartens, 7 primary schools and 17 secondary schools; the construction and furnishing of 15 “Fablabs” digital manufacturing laboratories; and the development of skills and competencies for digital appropriation and transformation; among others.

The main direct beneficiaries are divided into three groups: more than 3 million Santa Fe residents who will have a better internet connection; more than 48,661 families residing in 164 low-income neighborhoods that today lack internet connectivity and will have it for free thanks to the Program; and more than 25,000 students and 35,000 teachers trained. Through an appropriate combination of connectivity infrastructure that ensures access to high-quality internet, modern school infrastructure and technology equipment for digital inclusion, together with building capacities for use for digital skills, “Santa Fe + Conectada” aims to lay the foundations for inclusive digital transformation in the Province in terms of access and skills development for the 21st century.

Lastly, the Municipal Infrastructure Development Program – Stage I will receive funding for
USD 200 million to benefit more than 8.3 million people from 67 municipalities in Argentina’s provinces with the execution of 34 km of urban roads; 30 km of sewerage networks with at least 5,500 household connections; and the construction of 5,500 m2 improved urban area; among others.

The projects under the Program focus on substantially improving investments in infrastructure and urban facilities in municipalities to contribute to inclusive and sustainable development by providing social infrastructure in drinking water, sanitation, education, comprehensive habitat improvement and mobility. Initiatives will also be developed as part of CAF’s digital agenda to improve management of local public investment.

In the context of the current pandemic, an additional element in this initiative is the contribution that investments can make to job creation and the economic recovery of cities in Argentina.