IDB Invest Promotes the World’s Second-Largest Fleet of Electric Buses in Chile
- This is the largest fleet of electric buses in Latin America and the Caribbean with 992 buses
IDB Invest will provide long-term financing of up to $127 million over 13 years to Suministradora de Buses K Cuatro SpA, a special purpose vehicle company in charge of supplying 992 electric buses in the Province of Santiago and San Bernardo and Puente Alto municipalities in Chile. The financial structure also includes co-lenders International Finance Corporation (IFC), a member of the World Bank Group, and Banco del Estado de Chile.
The project promoted by IDB Invest places Chile with the second-largest fleet of electric buses in the world and aims to reduce emissions, improving air quality of Santiago and displacing nearly 31,000 tons of CO2 per year. This is equivalent to replacing 992 diesel buses. The project is expected to serve as a model in the adoption of electromobility for Chilean public transportation.
The financing will allow the purchase and supply of 82 class A1 electric buses that have a capacity for 72 passengers, and 910 class B2 that have a capacity for 90 passengers, to replace the current diesel buses of the Metropolitan Network system in the Santiago Metropolitan Region of Chile.
IDB Invest is also providing technical assistance to carry out an analysis of second uses and recycling of batteries in electric buses, as well as carrying out training on electromobility and decarbonization of public transportation.
This project demonstrates IDB Invest's commitment to improving people's lives by supporting Latin American and Caribbean countries in reducing their greenhouse gas emissions and achieving carbon neutrality through transformational projects in urban settings.
The operation is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Industry, Innovation and Infrastructure (SDG 9) and Sustainable Cities and Communities (11).
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and over 390 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Bus Supplier K Cuatro SpA
Suministradora de Buses K Cuatro SpA is a special purpose vehicle company (or “SPV” for its acronym in English) owned by Sociedad de Inversiones K Cuatro SpA (99%), Infrabridge EBUS CHILE SpA (0.5%) and Comercial Motores de Los Andes SpA (0.5%), created to develop the Project. Sociedad de Inversiones K Cuatro SpA is owned by Inversiones Kaufmann Chile S.A. (50%) and Infrabridge EBUS CHILE SpA (50%). The SPV was awarded the MTT Bus Supply Contract in the bidding process held by the MTT for the acquisition of 992 electric buses that operate the RED System of the Metropolitan Region of Chile.