World Bank's Guarantee Implementation
On 3 August 2017, the Executive Power passed Decree No. 605/2017, which approved the draft indemnity agreement (Agreement) to be entered into by and between Argentina and the International Bank for Reconstruction and Development (IBRD) as part of the RenovAR warranties' framework.
The awardees of 27 projects within the RenovAR Program hold the IBRD guarantee consisting of a put option to sell the project's assets to Argentina in case structural modifications affecting such projects occur. If the option is exercised, Argentina would have to pay the price for the assets. If Argentina fails to make such payment, the IBRD will pay the awardees up to an amount of USD 480,000,000. In turn, the Agreement will allow the IBRD to claim Argentina the corresponding reimbursement.
The Agreement is another step to complete the RenovAR’s warranties' scheme to support the execution of the projects awarded in Rounds 1 and 1.5.
The Agreement is available here (in Spanish only).