The Inter-American Development Bank (IDB) has approved a $1bn credit package for a new bridge over the Paraná River in northeast Argentina.

Its board last week approved a $700m credit line and a $345m “first loan” for building a span between the provinces of Chaco and Corrientes, as well as the access roads.

IDB said nearly 870,000 people will benefit from the bridge, and that 88,000 people would use it every day.

Currently, the two provinces have only one link: the two-lane General Manuel Belgrano Bridge between the cities of Resistencia and Corrientes, which is grossly inadequate to traffic demand.

The plan is to add a four-lane span about 9km away. This will involve building a 772m cable-stayed span, 5.6km of viaducts, and 28km of associated highway.

The $345m loan will finance the first phase of building along with project supervision and socio-environmental mitigation.

The loan has a 25-year repayment term and a 5.5-year grace period. It will be matched with a $100m local contribution.