Buenos Aires asks Milei to approve World Bank loan for Río de la Plata sanitation

The Province of Buenos Aires' State Prosecutor's Office has formally requested a federal court to order the national government to respond within ten days on whether it will guarantee a pre-approved $270 million loan from the World Bank. This funding is earmarked for crucial sanitation projects aimed at treating pollutant effluents in the Río de la Plata basin.

The legal action follows a meeting between President Javier Milei and Susana Cordeiro Guerra, the World Bank's Vice President for Latin America and the Caribbean, which was also attended by Economy Minister Luis Caputo. The request is directed at Caputo's ministry, seeking a national guarantee that would enable the province to secure the debt.

Governor Axel Kicillof's administration initially submitted the request to the Ministry of Economy in 2024 and has reiterated it in April and May of the current year without receiving a definitive response. The State Prosecutor's Office highlighted in its filing that "to date, more than a year and a half after the first request, the national government has not responded to these requirements."

According to the Buenos Aires Minister of Infrastructure, Gabriel Katopodis, ten other provinces have successfully obtained national guarantees for international credits, totaling $180 million. These funds have been allocated to various projects, including drinking water, infrastructure, logistics, production, and urban development. The provinces that have received these approvals include Salta, Entre Ríos, Jujuy, Córdoba, Santa Fe, Neuquén, Chaco, Río Negro, Mendoza, and Misiones.

The proposed sanitation project for Buenos Aires includes a Primary Advanced Treatment Plant in Berisso, an underground emissary pipe, a sub-fluvial emissary, and a diffuser. This infrastructure aims to manage wastewater from La Plata, Berisso, and Ensenada. However, the province cannot proceed with the project without the national government's guarantee, leaving this and other development programs stalled.

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To date, more than a year and a half after the first request, the national government has not responded to these requirements.