Release date: 11 August 2022
Promoter – Financial Intermediary
REPUBLICA ARGENTINALocation
Description
Expansion and modernisation of the electricity transmission network with increasing integration of renewable electricity generation capacity.
Additionality and Impact
The financing of the Programme is strongly aligned with the Argentinian national targets for security of supply as well as decarbonisation in the context of the Intended Nationally Determined Contributions for Argentina.
The project will contribute to the achievement of the Bank's objectives, in terms of Energy Security and Climate Action finance outside the EU, as well as the targets for decarbonisation and greenhouse gas emission reduction (mitigation of climate change). The project will contribute to EU policy objectives with regard to sustainable energy infrastructure, combating climate change and will support Sustainable Development Goals, in particular the SDGs 7 (Affordable and Clean Energy) and 13 (Climate Action).
This operation is in line with EU priorities for Argentina and eligible under NDICI, as it contributes to climate change mitigation as well as to the development of social and economic infrastructure, specifically energy.
The Programme will have a positive impact on the communities where the works are carried out, mainly due to access to a better quality electrical service; and the possibility of development and/or expansion of regional economy. The economic rate of return and social benefits are expected to be excellent for sub-projects selected at allocation stage. The project is supported by adequate governance and capabilities of the promoter.
The EIB's advice has been sought by the promoter given that this is the first operation with this Promoter and given the complexity of some investments. Monitoring missions to ensure compliance with disbursement conditions and reporting frequency (semi-annual) will be coordinated with IDB to benefit from synergies and to avoid overlapping/duplication.
Objectives
The proposed operation consists of a framework loan of up to EUR 100 million to the Republic of Argentina to finance the first phase of the Federal Plan for Regional Energy Transport (the "Programme") to expand and modernise the electricity transmission network.
Comments
This operation is in line with EU priorities for Argentina and eligible under NDICI (Neighbourhood, Development and International Cooperation Instrument).
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
EUR 100 million
Total cost (Approximate amount)
EUR 414 million
Environmental aspects
The Bank will require the Promoter to ensure that the implementation of the project will be done in accordance with the Bank's Environmental and Social Principles and Standards.
Procurement
The Bank will require the Promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.
Status
Signed - 30/12/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).