The Buenos Aires Metro system, the oldest in Latin America, is undergoing a full modernization process. In addition to a US$1.350bn tender for the construction of Line F, there are US$247mn for upgrading existing infrastructure and purchasing rolling stock.
To learn the details of the investment plans, as well as their financing at a time when Argentina’s government is insisting on austerity measures, BNamericas spoke with the president of the operator Subterráneos de Buenos Aires (Sbase), Javier Ibáñez.
BNamericas: What is Sbase's investment plan for this year?
Ibáñez: The most important milestone for us is the extension of the network in terms of kilometers, and for that the city government is carrying out the tender for line F, which would have connections with all the other lines.
That tender would be ready to open bids in July.
It had been a long time since the subway network was expanded, but there is also an infrastructure deficit in terms of maintenance. The oldest parts of the network are 113 years old and have problems with water leaks and deterioration of their stations.
There are 48 stations that were inaugurated before 1940 and we have a plan to renovate them. We have already finished work on 19, two are close to completion, and there are tenders for another eight that would be launched in the next 30 days.
We expect to complete the current term [2023-2027] with finished works at the 48 stations considered centennial.
Regarding the part the customer does not see, there are also investments in depots and operations. We are tendering the expansion of the line D workshop so that the train maintenance processes are more expeditious.
In rolling stock there are units that are more than 60 years old, which is especially problematic for line B, the most important in the system with 250,000 passengers per day.
Last year we awarded the purchase of 29 new trains for this line, and we expect them to start operating in February 2027. This is because the power system also has to be changed, as it is currently similar to the one used by surface trains with 600 volts.
Going from 600 volts to 1,500 volts is not just an increase in power, it is also an improvement in energy efficiency of between 30% and 40% less consumption.
BNamericas: Are there plans for rolling stock purchases on other lines?
Ibáñez: We also awarded the acquisition of 10 new trains for line C, which is the shortest, but has connections with important transport hubs such as Retiro and Constitución stations. These new cars will start operating in November.
The trains that were already on that line, which were relatively new, are going to be moved to line E, which has units that are 65 years old.
By the second half of this year, we expect to launch the tender for the rolling stock for Line F.
The possibility of extending line F is also being studied once the design of the civil works we are currently tendering has been clearly defined.
BNamericas: Are the funds secured for the investment plans?
Ibáñez: Sbase is a corporation whose financing comes from different sources that go into a trust. In the case of large projects such as line F, the government of the city of Buenos Aires is the one that decides how it is financed, whether with bonds, loans from multilateral institutions, etc.
Multilateral financing is now being sought, but for a subnational entity such as the city of Buenos Aires to be able to enter into that type of agreement, it requires the approval of the national government, and discussions on this are currently underway.
BNamericas: How did the federal government’s “chainsaw” affect Sbase?
Ibáñez: It affected us for two reasons. One was that there were no approvals for financing operations with multilateral organizations for two years, and that delayed the tender for the line B trains, which were financed by CAF.
At the same time, the “chainsaw” affected the economy in general. Revenues fell in all the provinces and in the city of Buenos Aires, because tax collection fell, trade fell, industry fell, and economic activity fell.
(The original version of this content was written in Spanish)
