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EIB to offer EUR42.2m loan for Jujuy's urban waste management plan

CTBR Staff Writer Published 26 March 2018

The European Investment Bank (EIB) has agreed to provide the Argentine province of Jujuy with EUR42.2m in loan and EUR11.3m in grants for the treatment of 200 000 tonnes of waste generated in the region.

This loan is covered by the EU guarantee agreement and has been provided under the Latin America lending mandate 2014-2020, making it possible for the EIB financing to be granted with favourable conditions in terms of both maturity and interest rates. The total financing of Jujuy's integrated waste management project includes EUR11.3m in the form of a non-repayable grant from the European Commission's Latin America Investment Facility (LAIF).

The investment also includes contributions from the Province of Jujuy and resources from an Inter-American Development Bank (IDB) loan managed by the national Ministry for the Environment and Sustainable Development, amounting to EUR 14m and relating to the Chanchillos I and II projects currently being finalised.

The project is part of the Jujuy Verde Carbono Neutral 2030 (Green Jujuy Carbon Neutral 2030) initiative launched by the Provincial Government, and covers the development of new infrastructure such as a composting centre, a biogas plant, collection and environmental centres, and the purchase of the equipment needed for the collection, sorting and recycling of waste, such as containers and refuse collection vehicles.

The implementation phase of the Jujuy integrated urban waste management plan will last until 2021, by which time the finished project will make it possible to provide solid urban waste services to approximately 800 000 people. It will also have a positive impact on employment, enabling the creation of jobs during the implementation phase and permanent employment via the new waste management system.

At the signing ceremony, EIB Latin America operations director María Shaw-Barragán emphasised the importance of this agreement for helping to meet the EU's objectives and priorities in the region: “Today we are delighted to support a project that will provide environmental – but also economic and social – benefits in Jujuy.

“The new waste collection and treatment infrastructure will create new economic opportunities in the region. Part of the EU financing will be used to support initiatives to train those already working at the landfill sites, and particularly the social integration of women via new job opportunities. At the same time, the project will contribute to combating climate change by considerably reducing greenhouse gas emissions from landfill.”

Jujuy Governor Gerardo Morales also welcomed the launch of this initiative saying: “We are delighted to have reached this milestone with the EIB. The loan we are receiving will enable us to implement a fair project with a great reach, as we will be providing waste management services to every corner of the province.

“Our challenge is to solve the historic environmental issue of solid urban waste as part of our Jujuy Verde policy, and we know that we will succeed with the help of the EIB and European Union. We also hope that this milestone is the beginning of a partnership with the EIB and EU enabling us to secure assistance for other strategic projects such as energy and lithium.”

Provincial Environment Minister María Inés Zigarán provided her thanks for the efforts of the teams at her ministry; as well as of the Office of the Chief of the Cabinet of Ministers and the national Ministry of Finance, via the Under-secretariat for International Financial Relations; the GIRSU S.E. company; the Jujuy Ministry of Finance; and the Development Bank, all of whom had worked hard to reach this point. She also highlighted the work of the EIB and EU teams that had trusted and believed in this project.

She said: “We have been presented with a historic opportunity. To this end, we will make every effort to get the best results possible enabling us to meet the requirements of the municipalities managing solid urban waste, with a focus on development and social inclusion. The resources provided by this loan will help us to implement the paradigm shift of Law 5.954, which establishes a cooperative model between the Province and local governments, and that sees waste as a development opportunity.”

This operation is the EIB's second with the Argentine public sector in the last year. Last November, the EIB granted a EUR 60m loan to Argentina for the Bank of Investment and Foreign Trade (BICE), with the goal of providing liquidity to finance the investments of Argentine small and medium-sized enterprises.

The EIB began operations in Argentina in 1995, and since then has signed 14 operations in the public and private sectors aiming to support the country's economic growth.

Source: Company Press Release