The Government approved the contract for another IDB loan to finance a program aimed at strengthening the sustainability of the electricity sector. And it seeks to guarantee access for vulnerable users and improve institutional capacities in this area.
The Government approved the contract model to receive financing from the Inter-American Development Bank (IDB) to carry out an ambitious program to transform the country’s electricity sector. He did it through Decree 1052/2024 published this Friday in the Official Gazette.
The approved loan is for US$700 million and thus adds to another loan granted by the IDB this week of US$1.7 billion.
As mentioned in the official text, the objective of the disbursement is “to strengthen the sustainability of the Argentine electricity sector.” Also improve access to electrical energy for the most vulnerable sectors of the population, particularly in the Buenos Aires Metropolitan Area.
Social protection for vulnerable populations
It mentions that with the funds it will sustain electricity subsidies focused on three phases (1.1, 1.2 and 1.3) and will guarantee access to electricity for vulnerable households in the Buenos Aires Metropolitan Area. It will also improve technical and administrative capabilities to ensure the sustainability of the electricity sector.
The Decree mentions that it is an important step towards a more sustainable and equitable energy future for the country. By addressing energy access challenges and improving the efficiency of the electricity sector.
Finally, it authorizes the Minister of Economy to sign the contract and related documents, as well as to agree on modifications that do not alter the purpose of the program, the amount of the loan or the arbitration procedure.
Source: Ambito
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