WASHINGTON, D.C., December 19, 2025 - The World Bank Board of Directors approved an additional financing of US$300 million to strengthen institutional capacity for optimizing the scope of gas subsidies, protecting the most vulnerable households, and promoting fiscal and environmental sustainability in the energy sector.
This additional financing builds on the project "Supporting the Transition to a Sustainable Electricity Sector," which improved the Energy Subsidy Access Registry (RASE), successfully reclassifying 1.2 million households.
"We support the government's efforts to continue improving the targeting of gas subsidies so they reach the most vulnerable populations, who allocate a higher percentage of their income to meet their energy needs," said Marianne Fay, Division Director for Argentina, Paraguay, and Uruguay.
The new project aims to reach both network users and bottled gas users, with special attention to low income households and regions without access to piped gas, where people rely on bottled gas mainly for cooking.
The project will simplify, harmonize, and modernize the various gas subsidy schemes, improving both efficiency and accessibility. In particular, it plans to integrate bottled gas beneficiaries into a registry, facilitating their access to subsidies and complementary programs.
By better aligning the subsidy scheme with household energy consumption patterns, the project seeks to improve system equity and energy use, reduce consumption, encourage energy efficiency measures, and cut unnecessary expenses.
The loan has a variable spread, is repayable over 32 years, and includes a 7-year grace period.
