The European Investment Bank (EIB) is providing a loan of $50 million, under the EU development co-operation policy, to expand a power plant in Argentina. The loan, to Pluspetrol Energy SA, will be used to expand a gas-fired power plant in Tucumán and convert it to combined cycle operation. The expanded plant is expected to generate three times as much power as the existing power station with its steam generation units. The combined cycle configuration will offer greater efficiency and firing with natural gas will help keep pollution levels down.

The seven year EIB loan is being guaranteed by a consortium of banks. Pluspetrol is owned jointly by the Spanish company Repsol (45 per cent) and Pluspetrol Resources Corp (55 per cent), an Argentine-owned company.