Utilizing the “Trust Fund for Private Sector Development in Latin America, the Caribbean, and the Pacific (TADAC),” funded by the Japan International Cooperation Agency (JICA), the Inter-American Investment Corporation (IDB Invest) signed a loan agreement on June 8 with CS Rodovias Mercosul S.A., the company responsible for the operation, maintenance, and repairs for the international bridge connecting the city of São Borja in Brazil and the city of Santo Tomé in Argentina. Under this project, IDB Invest and TADAC will each contribute US$17.5 million, providing a total of US$35 million in co-financing.
This project aims to improve the efficiency of border crossings, facilitate logistics, and revitalize the regional economy through the operation, maintenance, and renovation of the San Borja–Santo Tomé International Bridge and the Integrated Border Center, which serve as a key logistics corridor for trade between Brazil and Argentina. Consequently, the project is expected to contribute to strengthening supply chains and promoting trade within the MERCOSUR region, while also supporting sustainable economic growth in both Brazil and Argentina. Both countries are important strategic partners for Japan as suppliers of resources and food; therefore, this project is expected to contribute to Japan’s economic security by strengthening the economic foundations of these nations.
(Note) JICA has pledged a contribution of 1 billion U.S. dollars to the Trust Fund Achieving Development of Latin America and the Caribbean (commonly known as TADAC), which is established within the Inter-American Development Bank (IDB)—the largest development finance institution in Latin America and the Caribbean—and managed by IDB Invest, the IDB Group entity responsible for private sector investment and financing. TADAC provides co-financing to complement loans extended by IDB Invest to private-sector initiatives aimed at achieving the SDGs. By contributing to TADAC through its overseas investment and financing activities, JICA aims to help close the funding gap necessary for achieving the SDGs in Latin America and the Caribbean and contribute to the region’s sustainable socioeconomic development.
・Borrowers
CS Rodovias Mercosul S.A. (CS Mercosul)
・Country (Target Region)
Federative Republic of Brazil
・Loan Amount (Maximum)
17.5 million U.S. dollars
・Project Name
San Borja–Santo Tomé International Bridge Operation, Maintenance, and Repair Project (Brazil–Argentina)
・Business Objectives
Through a long-term loan to CS Mercosul, this project supports the operation, maintenance, and repair of the San Borja–Santo Tomé International Bridge and the Integrated Border Center, with the aim of improving logistics efficiency between Brazil and Argentina, promoting regional economic development, and strengthening cross-border trade functions.
・Business Overview
The loan under this project will be used to fund CS Mercosul’s operations, maintenance, and repairs of the San Borja–Santo Tomé International Bridge and the Integrated Border Center.
・ Contributing to the SDGs
Goal 8 (Decent Work and Economic Growth)
Goal 9 (Build the Foundations for Industry and Innovation)
Goal 10 (End Inequality Among People and Nations)
Goal 13 (Take concrete action on climate change)
Goal 17 (Let’s Achieve Our Goals Through Partnership)
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