The Inter-American Development Bank (IDB) has approved a $400 million loan to support renovation and electrification work of the General San Martin metropolitan area railway between the stations of Retiro, in Buenos Aires City, and Pilar, in the namesake province.
The project will finance restoration and electrification work, including the renovation of railways in the Retiro-Palermo and Paternal-Pilar segments, 25KV catenary electrification, and construction of a transformer substation and auto-transformer points. It will also fund the installation of a new signaling and communications system, purchase of equipment for the connection and maintenance of the catenary system, converting the Playa de Alianza site into a maintenance workshop, and renovating the Pilar station.
This 76.3-km -long railroad was used by 51 million passengers in 2016, making it a key component of the Buenos Aires Metropolitan Area railway system.
The project will cut travel time and boost up reliability, quality, and capacity in the Buenos Aires Metropolitan Area north-west railroad corridor. A modern signaling system will provide more safety and efficiency, while new traction technology for the trains will help mitigate climate change effects, since electric railway systems emit 20 percent to 25 percent less greenhouse gases than those running on diesel fuel.
The total cost of the project is $522 million. This includes $122 million in local counterpart funds that will be provided by Argentina. The IDB’s $400 million loan is for a 25-year term, with a 5.5-year grace period and a LIBOR-based interest rate.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
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