The Project implementing agencies are: (i) the DPV (Dirección Provincial de Vialidad), who is responsible for the design and preparation of tender documents for this project; (ii) the ACIF (Agencia Cordoba de Inversion y Financiamento), responsible for the execution of the loan and launching the tender process; and (iii) DNV DNV (Dirección Nacional de Vialidad), responsible for the operation and maintenance of the roads once the project has been completed.

The Borrower will be the Province of Cordoba, and the Legal Agreements will be signed by the Governor or other representative of the Province. The Province of Cordoba is the 2nd most populated out of Argentina’s 23 provinces.

The proposed transaction will finance the expansion of National Routes (RN) 8 and A005, with a total project cost of USD 228 million. These roads serve as vital bypasses for Río Cuarto, a key commercial and service center in a dynamic agricultural-livestock region that strategically links the Pampa and Cuyo areas.

The project is located in Rio Cuarto, the second-largest city in the Province of Cordoba. The Province of Cordoba is located in the center of the country. Neighboring provinces are (clockwise from the north): Santiago del Estero, Santa Fe, Buenos Aires, La Pampa, San Luis, La Rioja and Catamarca. All investments will be implemented in the Capital City of Cordoba and the Alpa Corral region.

IFC’s additionality is strong both from a financial and non-financial perspective. IFC will play a countercyclical role and provide corporate debt financing through an innovative instrument -. e.g., the first Sustainability-Linked Loan (SLL) subnational government in Latin America and the Caribbean - and will play a key role in mobilizing commercial lenders which would otherwise

limit exposure or not finance subnational infrastructure in Argentina. IFC debt financing package and mobilization is critical to finance the Province of Cordoba’s Road infrastructure and sustainability strategy, amid a challenging macroeconomic context and limited fiscal space. IFC is providing advisory support for the development of a robust Sustainability Framework, which is aligned with international principles and enhances the Province’s ability to access commercial finance linked to sustainability goals. Similarly, IFC is providing advisory support to enhance the Province’s capacity to identify and mitigate road safety and E&S risks to improve quality of subnational infrastructure Projects.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability because the proposed project is expected to have limited adverse E&S risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures, as described in the following sections. The brownfield road expansion will be mainly developed in the RoW of the existing road (i.e., 5 ha will be impacted outside of the RoW), in modified habitats not used for agricultural activities.

Key E&S aspects associated with the project include the following: (i) the Client's ESMS to assess and manage E&S risks and impacts; (ii) management of labor and working conditions and occupational health and safety (OHS) policies and practices, including of contractors and subcontractors; (iii) management of project-related economic displacement of population; and (iv) the Company's stakeholder engagement activities related to E&S aspects.