Argentina will improve the reliability and security of electricity services in 18 provinces with a $120 million loan approved by the Inter-American Development Bank (IDB).
The program will finance the construction or rehabilitation of 937.3 kilometers of transmission and distribution lines by 2015. The peak load served in the areas covered by the project will be raised from 876.1 MW to 1085.7 MW during the same period.
These works will support the Argentine government’s effort to overhaul the country’s energy sector through its Federal Electricity Transmission Plan. The objective of the project is to restore electricity transmission capacity in the Argentinean provinces and to enhance the efficiency and reliability of the transmission grid.
Argentina’s energy sector was hit hard by the macroeconomic crisis of 2002. The country now has to overhaul its energy sector, while meeting a growing demand at the same time. The electricity transmission grid is saturated in a number of locations, and new interconnections are needed to enhance energy efficiency, serve rural areas far removed from the country’s major cities, and support regional integration.
The Government of Argentina will contribute $120 million equivalent in local counterpart resources. A $84 million loan from the Andean Development Corporation will constitute 70 percent of its counterpart contribution.