AR-PROVINCIAL AGRICULTURAL SERVICES PROGRAMME FL

Promoter – Financial Intermediary

PUBLIC ENTITY(IES)

Location

• Argentina

Description

The project consists in a framework loan to Argentina to support climate action projects that facilitate the adaptation of agricultural production to market demands and promote the increase in added value of the sector's productive value chains.

Additionality and Impact

The Provincial Agricultural Services Program (PROSAP V) will implement, at the provincial and national level, socially and environmentally sustainable public investment projects, increasing the coverage and quality of rural infrastructure and agri-food services. Within this framework, PROSAP carries out projects that facilitate the adaptation of agricultural production to market demands and that promote the increase in added value of the sector's productive value chains. The Program will have a special impact on the modernization and competitiveness of agricultural SMEs, sustainability of natural resources, and improvement of rural infrastructure and services. The Program is designed to achieve a broader outreach across population groups with different gender, age, interculturality and disability characteristics.

The EIB additionality thereby refers to the financing of investments delivering strong impacts on a) climate adaptation and mitigation as well as environmental sustainability; b) modernization and competitiveness of agricultural SMEs; c) improved rural infrastructure and services. EIB's involvement will complement the financing provided by other International Financial Institutions, therefore facilitating the financing of the full programme, also the EIB´s cooperation will allow the Republic of Argentina to access to sufficient long term finance that allows it to deliver these public goods. The EIB's contribution is a significant element of the overall financing plan in terms of diversification as well as tenor and pricing.

The PROSAP V is aligned with the National Strategy for Sustainable Consumption and Production (2021), the National Plan for Adaptation and Mitigation to Climate Change (2022), and the National Plan for the Reduction of Food Losses and Waste (2018). The program is fully in line with the key objectives of Global Europe Programme outlined in the Neighbourhood, Development and International Cooperation Instrument (NDICI), as laid down in Article 3(5), Articles 8 and 21 of the Treaty on European Union. The Program will follow the EIB's Environmental, Climate and Social standards and the standards of the Interamerican Development Bank (lead financier).

Objectives

The overall objective is to develop regional economies and contribute to improve he competitiveness of the agro-industrial sector, in particular small and medium-sized producers and entrepreneurs, through strategic sector investments that increase productivity and improve the quality and access to new markets, with a focus on strengthening resilience to climate change.

Comments

The Program will be implemented between 2023 and 2027 in different provinces of Argentina.

Sector(s)

• Agriculture, fisheries, forestry - Agriculture, forestry and fishing
• Water, sewerage - Agriculture, forestry and fishing
• Credit lines - Credit lines

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 150 million

Total cost (Approximate amount)

EUR 300 million

Environmental aspects

The EIB will require the Promoter to ensure that the implementation of the project will be done in accordance with the EIB's Environmental and Social Standards.

Procurement

The EIB will require the Promoter to ensure that the implementation of the project is carried out in accordance with the EIB's Guide to Procurement.

Status

Signed - 22/10/2023