Major Investment in Mendoza's Water Infrastructure
Argentina has successfully secured a USD 75 million loan from FONPLATA (Development Bank for the Plata Basin) to significantly improve and expand drinking water services in the province of Mendoza. The loan, approved by FONPLATA's Board of Directors on July 31, 2025, and officially authorized on November 14, 2025, through its publication in the Official Gazette, is designated for the 'Drinking Water Services Optimization and Expansion Program'.
This substantial investment is projected to directly benefit more than 980,000 people and facilitate the connection of approximately 100,000 new residents to the drinking water system, thereby boosting inclusion and well-being across the province. Governor Alfredo Cornejo announced the authorization during a press conference, highlighting the importance of the funding for ongoing and future projects.
Program Scope and Key Projects
The program, managed by the Ministry of Treasury and Finances of the Province of Mendoza with a guarantee from the Ministry of Economy of Argentina, encompasses crucial infrastructure investments. These include:
- Construction and modernization of water treatment plants.
- Expansion of distribution networks.
- Development of new reservoirs and pumping stations.
Among the primary works are the expansion of the Alto Godoy plant in Greater Mendoza and the Balloffet plant in the Department of San Rafael. These projects are designed to address the structural challenges Mendoza faces, such as aging infrastructure, service deficiencies, and water stress exacerbated by climate change and aquifer overexploitation. The program has a four-year completion period.
Institutional Strengthening and Sustainable Development Goals
Beyond physical infrastructure, the loan also supports initiatives aimed at strengthening the service provider, AySAM S.A.. These actions include a pilot project focused on reducing water leaks and the implementation of a gender and diversity plan. These efforts align with FONPLATA's commitment to gender and youth equity, as well as its green credit lines.
The 'Drinking Water Services Optimization and Expansion Program' is consistent with several Sustainable Development Goals (SDGs), specifically contributing to SDG 6 (clean water and sanitation), SDG 11 (sustainable cities and communities), SDG 5 (gender equality), and SDG 7 (affordable and clean energy). This comprehensive approach underscores a commitment to sustainable development, water resilience, and an improved quality of life for the region's inhabitants.
8 Comments
anubis
Connecting 100,000 new residents and strengthening AySAM is a commendable goal for inclusion. But the four-year timeline seems ambitious for such complex projects, and consistent political will beyond this administration will be needed for success.
paracelsus
75 million? Watch how much of that actually reaches the projects, not pockets.
anubis
While this loan is a necessary step to address critical water shortages, the long-term debt burden on Argentine taxpayers needs to be carefully managed. Transparency in project execution will be crucial.
paracelsus
Finally, a real solution to Mendoza's water problems. This is essential!
eliphas
The focus on modernizing plants and reducing leaks is positive and addresses key problems. Still, relying on foreign loans for such basic services highlights underlying economic fragilities that also need to be addressed domestically.
paracelsus
Millions will benefit from this. A truly impactful investment.
eliphas
This loan will modernize critical infrastructure. Long overdue and much needed!
paracelsus
Water issues are deep-seated; a loan won't fix systemic mismanagement.