Washington, DC, June 06, 2017
— IFC, a member of the World Bank Group, is providing a $50 million loan to support the development of reliable, safe, and environmentally friendly urban transportation in Buenos Aires including the building of new efficient bus lines, introduction of new bicycle lanes and bike-sharing stations that will cut commuter times and reduce carbon emissions in the Argentine capital.
The financing represents IFC’s first municipal investment in Argentina and is part of a strategic relationship with Buenos Aires under IFC’s Cities Initiative. The IFC Cities program helps mayors and municipal leaders tackle their greatest challenges through financial, advisory, and project development support. In addition to the loan financing, IFC is providing advisory services to Buenos Aires spanning transformational priorities for the city, including solid waste management, transport, energy efficiency in public buildings and assistance in the promotion of green buildings standards with a special focus on Villa 31, a low-income urban settlement in the heart of Buenos Aires.
The new Bus Rapid Transit (BRT) system and bicycle infrastructure supported by the loan are part of the City of Buenos Aires’ $400 million transportation investment plan, aimed at improving urban mobility and connectivity, decreasing congestion, and easing pollution through the reduced use of cars.
Buenos Aires Minister of Treasury Martin Mura said, "With this agreement, we set course on a long-term working relationship that will enable us to deepen our transformation as a sustainable city. In addition, IFC’s local currency loan over a nine-year period will help the city meet its objectives of managing liabilities and improving its debt profile."
In addition, Buenos Aires Secretary General of Foreign Affairs, Fernando Straface, said, "The partnership with IFC goes beyond financing and encourages cooperation across crucial areas that are important to the city, including energy efficiency and sustainable public transportation. It is a novel approach that combines financing and technical support. We hope to replicate where possible in the future."
The Metropolitan Area of Buenos Aires has almost 14 million inhabitants, or over 30 percent of the country’s total population, making it one of the three most populous metropolitan centers in Latin America. The performance of the City is critical to the country’s ability to create better economic opportunities and improve the lives of its people. IFC’s partnership with Buenos Aires is aimed at helping the city achieve its goals to become a greener, more inclusive, and safer city for citizens.
“Argentina is one of the most urbanized countries in the world, and Buenos Aires is among the biggest cities in Latin America. Efficient and well integrated transportation infrastructure is key to addressing equality and inclusiveness challenges of urbanization,” said Irene Arias, IFC Regional Director for Latin America and the Caribbean.
IFC’s engagement is complementary to World Bank’s comprehensive urban transformation project already underway that includes improved access to infrastructure and services in areas of housing, sanitation, street lighting, and overall improvement in public spaces to ensure a better quality of life for Villa 31 residents.
Over the past decade, IFC has invested more than $10 billion in 300 urban improvement projects and provided advisory services to cities in more than 60 countries.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY16, we delivered a record $19 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
.
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