The World Bank has approved two new projects for Argentina, totaling $1 billion in variable-rate loans with a repayment period of up to 32 years and a seven-year grace period.
The projects aim to enhance public transportation and improve access to electricity for low-income communities.
The first project, titled Supporting Sustainability and Equity in Public Transport, allocates $500 million to improve public transit for five million vulnerable users in Buenos Aires.
It will finance the "Social Fare" program, offering a 55% fare discount in 61 locations across the country, benefiting retirees, pensioners, and those receiving universal assistance.
The initiative also includes developing strategies to transition Buenos Aires' bus fleet to low-emission vehicles and crafting emergency response plans for extreme weather events.
The second project, Supporting the Transition to a Sustainable Electricity Sector, also valued at $500 million, focuses on safeguarding energy access for low-income users.
It provides subsidies for electricity tariffs, enhances the database for energy subsidy eligibility, and facilitates the development of new mechanisms to integrate data from various records for better targeting.
According to World Bank officials, these initiatives will advance Argentina’s efforts to reform its public transport and electricity sectors, improving efficiency and service delivery while protecting the country’s most vulnerable populations through social tariffs and equitable infrastructure enhancements.
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