- The agreement signed with the Government of Jujuy will make it possible to provide new integrated solid urban waste management services in the province
- The project, which is the second to be financed by the EIB in Argentina in the last year, will help combat climate change and will also finance social and labour integration initiatives
- The EUR 53.5m of European Union assistance (including a significant EUR 11.3m in the form of a grant) confirm the EU's commitment to the development of the interior of Argentina
The Argentine province of Jujuy will be able to access new infrastructure for the integrated management of solid urban waste produced in the region. The European Investment Bank (EIB) and the Government of the Province of Jujuy today signed an agreement enabling the EU bank to contribute over EUR 42m to finance the investment needed for the treatment of 200 000 tonnes of waste generated in the region and that, until now, has been sent to open-air landfill sites with no selective treatment capabilities.
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 EUR 11.3m 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 Director for Operations in Latin America 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.”
Governor of Jujuy Gerardo Morales also welcomed the launch of this initiative, commenting: “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.
The EIB in Latin America
The European Union is the main partner for the development of the Latin America region, its number one investor and second biggest trade partner. The EIB, as the EU bank, provides economic support for projects in Latin America by facilitating long-term investment with favourable conditions and by providing the technical support needed to ensure that these projects deliver positive social, economic and environmental results.
Since the EIB began operating in Latin America in 1993, it has provided total financing of EUR 7.8bn to support 105 projects in 14 countries in the region. The EU bank's operations in the Caribbean started in 1978. Since then, the EIB has granted EUR 1.8bn to support various projects in the region.
In 2017, the EU bank provided EUR 759m in Latin America and the Caribbean, funds that have facilitated the development of 12 projects in Bolivia, Nicaragua, Paraguay, Mexico, Argentina, Panama, Peru and the Caribbean region, in sectors as diverse as energy, transport, water infrastructure, climate action and assistance for small and medium-sized enterprises.
The Latin America Investment Facility (LAIF) provides non-repayable grants to raise the additional financial resources needed to fund investment projects in sectors such as transport infrastructure, energy, the environment, climate change, and private sector development in Latin American countries. LAIF was officially launched during the EU-LAC Summit in May 2010 with a view to making the most of additional financing and increasing the impact of EU assistance.
https://ec.europa.eu/europeaid/regions/latin-america/laif-latin-america-investment-facility_en
EU strategy for combating climate change:
https://ec.europa.eu/clima/policies/strategies_en
https://ec.europa.eu/clima/policies/strategies/2030_en
https://ec.europa.eu/clima/policies/adaptation_en
