Matanza-Riachuelo Basin Sustainable Development Project Second Additional Financing

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.