The World Bank
Matanza-Riachuelo Basin Sustainable Development Project (P105680)
REPORT NO.: RES56825
DOCUMENT OF THE WORLD BANK
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
MATANZA-RIACHUELO BASIN SUSTAINABLE DEVELOPMENT PROJECT
APPROVED ON JUNE 9, 2009
TO
ARGENTINE REPUBLIC
ENVIRONMENT, NATURAL RESOURCES & THE BLUE ECONOMY
LATIN AMERICA AND CARIBBEAN
Regional Vice President: Carlos Felipe Jaramillo
Country Director: Marianne Fay
Regional Director: Anna Wellenstein
Practice Manager/Manager: Genevieve Connors
Task Team Leader(s): Jiang Ru, Maria Catalina Ramirez
The World Bank
Matanza-Riachuelo Basin Sustainable Development Project (P105680)
I. BASIC DATA
Product Information
Project ID Financing Instrument
P105680 Investment Project Financing
Original EA Category Current EA Category
Full Assessment (A) Full Assessment (A)
Approval Date Current Closing Date
09-Jun-2009 30-Sep-2024
Organizations
Borrower Responsible Agency
Ministry of Interior, Public Works and Housing,Unidad
Argentine Republic
Coordinadora General del Proyecto (UCGP)
Project Development Objective (PDO)
Original PDO
The overall development objective of the proposed APL program supports the Government's Integrated Basin Cleanup
whilesimultaneously improving sanitary conditions along the banks of La Plata River and providing a long-term and
cost-effectivesolution for safe disposal of wastewater from the Buenos Aires Metropolitan Area (AySAs concession
area). The two stage APL programthat contributes to this objective and the allocation of works and activities under
each APL has been specifically designed toensure that APL-1 can be free-standing, with no stranded assets at the end
of the first stage.
The project (APL-1) development objectives contribute to the overall program development objective by (i) improving
sewerageservices in the M-R River Basin and other parts of the Province and City of Buenos Aires by expanding
transport and treatmentcapacity; (ii) supporting a reduction of industrial discharges to the M-R River, through the
provision of industrial conversiongrants to small and medium enterprises; (iii) promoting improved decision-making for
environmentally-sustainable land use anddrainage planning, and piloting urban drainage and land use investments, in
the M-R River Basin; and (iv) strengthening ACUMAR#sinstitutional framework for ongoing and sustainable clean-up of
the M-R River Basin.
Summary Status of Financing (US$, Millions)
The World Bank
Matanza-Riachuelo Basin Sustainable Development Project (P105680)
Net
Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed
IBRD-92520 01-Jun-2021 28-Sep-2021 20-Jan-2022 30-Sep-2024 265.00 171.26 93.74
IBRD-90080 05-Sep-2019 12-Nov-2019 09-Dec-2019 30-Sep-2024 245.00 237.82 7.18
IBRD-77060 09-Jun-2009 25-Aug-2009 20-Jul-2010 30-Sep-2024 718.03 716.02 2.01
Policy Waiver(s)
Does this restructuring trigger the need for any policy waiver(s)?
No
II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
The project has a moderately satisfactory rating for its overall implementation progress and its progress towards
achievement of its PDO. The project is expected to complete most of its activities before its current closing date
(September 30, 2024) and thus achieve most of PDOs.
Two ongoing contracts facing implementation delays are the Riachuelo Wastewater Treatment Plant (WWTP) and the
industrial WWTP. Current delays of these two contracts are mainly caused by difficulties in the payment,
transportation, and customs clearance of imported electromechanical equipment. Of the two, the Riachuelo WWTP
contract is expected to be completed before the project's current closing date but the industrial WWTP contract is
expected to be completed shortly after the project's current closing date. Delay in the industrial WWTP contract puts
at risk the achievement of the PDO of reducing pollution load discharges. The Bank has been working with the Project
Implementation Unit (PIU) and AySA to find practical solutions to address the import challenges, to ensure timely
completion of the Riachuelo WWTP, and to avoid any further implementation delays of the Industrial WWTP contract.
In April 2023, the Bank's supervision mission confirmed that (a) there would be savings from the Riachuelo WWTP
contract financed by the Second Additional Financing (AF) Loan of the project; and (b) there are additional funding
requirements for remaining contracts under Component 2 Industrial Pollution Abatement and Component 3
Environmental Territorial Management. As such, the PIU proposed that such saving be relocated to cover financial
gaps for the remaining contracts under Components 2 and 3.
On May 12, 2023, the Government of Argentina sent the Bank its official request (see the attachment) to restructure
the project by expanding one disbursement category (Category 1) of the Second AF Loan to support the remaining
contracts of Components 2 and 3. The proposed restructuring, entails a change in disbursement Category 1 by
changing what this category financing, as it was limited to fund some activities under Component 1, by including the
possibility to fund Works under Components 2 and 3. No reallocation of loan proceeds, or changnes to funding
percentages are foreseen.
The World Bank
Matanza-Riachuelo Basin Sustainable Development Project (P105680)
The change will enable the government to utilize expected savings of the Second AF Loan to cover financing gaps, and
ensure timely completion, of the remaining contracts of Components 2 and 3. This proposed restructuring will have no
impacts on other aspects of project implementation.
III. DETAILED CHANGES
REALLOCATION BETWEEN DISBURSEMENT CATEGORIES
Current
Current Actuals + Proposed Disbursement %
Ln/Cr/TF Expenditure
Allocation Committed Allocation (Type Total)
Category
Current Proposed
IBRD- CW Parts 1
92520-001 (except Parts
Currency: 1(a)(v), 1(a)(vi)), 262,337,500.00 130,592,613.65 262,337,500.00 100.00 100.00
USD 2(f), 3(g); and CS
Part 1(b)
GO,CS,NCS,TR,O
2,000,000.00 0.00 2,000,000.00 100.00 100.00
P Part 4(e)
PREMIUM FOR
0.00 0.00 0.00
CAPS/COLLARS
FRONT END FEE 662,500.00 662,500.00 662,500.00
Total 265,000,000.00 131,255,113.65 265,000,000.00