Loan worth US$ 110 million proposed for South American road scheme

Argentine president Cristina Fernández and the Andean Development Corporation (CAF) have signed a US$ 110 million loan for the Argentina-Paraguay road integration programme, the government said in a statement.

The initiative is part of the Yacyretá conclusion plan, which includes the construction of the Encarnación-Posadas international bridge and its respective access roads.

CAF executive president Enrique García, said in the statement, "The US$ 110 million loan is for a project with an estimated cost of US$ 185 million. It has a 15 year term, with a five-year grace period."

According to a local news report, the project will enable the Yacyretá dam to increase hydroelectric production by permitting an increase in the dam's water level, and generating more energy for the country.

Yacyretá executive director Oscar Thomas told local media the water level increase will lead to an extra production of 6000 GWh/year.

"We have a firm commitment to supporting the country's infrastructure, social development and private sector development, among others," Mr García said in the report.