CAF approves USD 150 million to strengthen Chubut Province's aqueduct system

The Board of Directors of CAF, Development Bank of Latin America and the Caribbean, approved a loan of USD 150 million to finance the "Sustainable Aqueduct System Program in the Province of Chubut", Argentina, an initiative that will directly benefit the cities of Sarmiento, Comodoro Rivadavia, Rada Tilly, and Caleta Olivia.

The purpose of the program is to ensure the supply of drinking water in the Senguer River Basin, optimizing the efficiency of the system and enhancing the conditions for the sustainable development of the Patagonian province.

The aqueducts that run between Musters Lake and Comodoro Rivadavia and surrounding towns, with a total length of more than 200 kilometers, need to be optimized. The system combines an old aqueduct, built in 1966, and a new one, built in 1999, operating in parallel to transport drinking water to the distribution centers.

As part of this sustainable and resilient intervention, resilient infrastructure works are planned, including the construction of a new pipeline of approximately 41 kilometers in length, a new high-voltage overhead line, the rehabilitation of pumping stations and the construction of two water reservoirs, among others. In addition, there is a component aimed at strengthening the capacities of the provincial entities linked to the sector and to accompany the executing agency in the development of the necessary capacities for the correct execution of the operation.

Some of the expected benefits include:

• Improvements in continuous, safe and quality access to drinking water.
• The dynamization of local economies
• Territorial rooting
• Reduction of water losses
• Reduction of the system's carbon footprint.

In addition, this operation is eligible as green financing, at around 70%.

The Province of Chubut, recognized for its strategic position in the Argentine energy matrix based on its hydrocarbon resources and wind and solar energy within the framework of its Chubut 2050 Plan, will significantly strengthen its water infrastructure with this investment.

"This Program represents a fundamental step towards water security in a strategic region for Argentina," said Sergio Diaz-Granados, CAF's Executive President. "The modernization of the aqueduct system will not only improve the quality of life for hundreds of thousands of people, but will also strengthen the productive capacities of a key province in the country's energy matrix. At CAF, we firmly believe that continuous and safe access to drinking water is a fundamental right and a driver of sustainable development," he added.