Concept Project Information Document (PID) (English)

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Table of Contents

• The World Bank 1
• The World Bank 2
• BASIC INFORMATION 2
• A. Basic Project Data 2
• Proposed Development Objectives 2
• PROJECT FINANCING DATA US Millions 2
• Maximizing Finance for Development 2
• Is this an MFD-Enabling Project MFD-EP 2
• Is this project Private Capital Enabling PCE 2
• SUMMARY 2
• Total Operation Cost 500.00 2
• Total Financing 500.00 2
• Financing Gap 0.00 2
• DETAILS 2
• World Bank Group Financing 2
• The World Bank 3
• B. Introduction and Context With a gross domestic product GDP of US641 billion in 2023 Argentina is the third-largest economy in Latin 3
• America. The middle class has historically been large with social indicators generally above the regional average. 3
• The World Bank 4
• On June 2024 the International Monetary Fund IMF Executive Board approved the eighth review of the 4
• Extended Fund Facilities EFF enabling the disbursement of around US800 million. Argentinas power sector has been open to private investment and competition since 1992 and is structured 4
• The World Bank 5
• Energy subsidies represented roughly 1.5 percent of GDP in Argentina in 2023 a drop from the 2.0 and 2.3 5
• Compañía Administradora del Mercado Mayorista Eléctrico Sociedad Anónima 5
• Compañía 5
• Energy subsidies in the last two decades have been deeply marked by the 2001 crisis 5
• . A new attempt to rationalize subsidies and set cost-reflective tariffs was made in early 2016. 5
• The World Bank 6
• In mid-2022 the government started revising tariff structures to better target subsidies to poor and vulnerable 6
• Registro de Acceso a los Subsidios a la Energía Registro 6
• The World Bank 7
• Argentinas success in implementing reforms hinges on understanding the effects of current subsidies on 7
• Strengthening Policies Institutions and Investments for Rebuilding Better. 7
• The World Bank 8
• C. Proposed Development Objectives 8
• D. Concept Description The Project would consist of three components 8
• Component 1 Enabling conditions to improve subsidies targeting 8
• Improving subsidies targeting and data will require developing or improving up-to-date and consolidated 8
• Component 2 Developing capacities and instruments to foster sector sustainability and efficiency 8
• The World Bank 9
• Further revising subsidy schemes will require evaluating the distributive impact of tariff increases on 9
• Triggered 9
• Last approved Current 9
• The World Bank 10
• CONTACT POINT 10
• World Bank 10
• BorrowerClientRecipient 10
• Argentine Republic 10
• Implementing Agencies 10
• Secretary of Energy 10
• FOR MORE INFORMATION CONTACT 10
• The World Bank 11
• APPROVAL 11
• Approved By 11