Montevideo, July 26, 2024 — The International Finance Corporation (IFC), a member of the World Bank Group (WBG) announced the signing of apartialcreditguaranteeof USD 67 milliontoBuquebus (Los Cipreses S.A.)forthebuildingoftheworld'slargestelectric ferry (e-ferry) China Zorrilla,whichwillconnect Buenos Aires, Argentina, and Colonia del Sacramento, Uruguay, through a loan fromBanco Santander Uruguayfor USD 107 million.
This financing allows Banco Santander and IFC to carry out the first "blue operation" in Uruguay and the first in the maritime and electric transport sector worldwide. The concept "blue loan" - a subset of green financing - is a concept used by IFC to refer to investments in water management, reduction of plastic pollution, restoration of marine ecosystems, sustainable maritime transport, ecological tourism, and marine renewable energy.
"At Buquebus, we believe that the future is only possible if it is sustainable and efficient. Therefore, reducing energy consumption, incorporating innovation, and strengthening social action are part of our business strategy,” said Juan Carlos López Mena, president of Buquebus. “Our main environmental goal is to reduce greenhouse gas emissions through state-of-the-art technologies. We focus on continuous improvement, generating energy efficiencies, and ensuring social equity in everything we do. We are proud and grateful for our long-term partnership with Banco Santander and now with the International Finance Corporation (IFC) achieving the goal of Zero Emissions with this innovative vessel."
Gustavo Trelles, Country Head of Santander Uruguay, stated that the bank's commitment to sustainability is strong and resolute: "We do not allow ourselves to stop at mere words; we focus on actions, as we have made public commitments to become a leading player in sustainable financing. All our financing tools are available to individuals and companies determined to pursue progress, investment, business growth, and driving the green transition. I want to highlight our relationship with Buquebus, a partnership that has lasted for over ten years and is marked by constant exploration to grow the business, thereby offering the best to our clients. This is one of our greatest commitments, and we will continue to carry out our activities in this direction."
“Thisprojectis a remarkableinnovationthat will bringtheworld’slargest e-ferry toconnect Argentina and Uruguay, markingthefirst e-ferry in emergingeconomies. It will inspire othercompaniesin this and otherregions,” saidAlfonso Garcia Mora, Vice PresidentforEurope, LatinAmerica, and theCaribbean at IFC. “Investing in electrictransportationisessentialto reduce millions of tons of greenhouse gas (GHG) emissionseachyear, a sector thataccountsforaround 25% of theseemissionsglobally.”
Bysupportingthedecarbonizationofthelargestpassenger ferry operationbetween Argentina and Uruguay, whichwillbring a reductionequivalentto 37,545 tonsofcarbondioxide (tCO2e) per year, theinvestment continues theWorld Bank Group’sprogrammatic and coordinatedapproachtomakingthetransportation sector in LatinAmerica and theCaribbean more sustainable.
The financing adds to Banco Santander’s more than a decade-long relationship with Buquebus to support its sustainability goals, a path the maritime transport company has responsibly taken to address environmental challenges with a comprehensive approach. This commitment to sustainability began with the construction of the Francisco vessel over ten years ago, also financed by Santander, which operates on Liquefied Natural Gas (LNG), a cleaner fuel than diesel and fuel oil alternatives. With the introduction of the China Zorrilla, Buquebus is once again at the forefront of technological and environmental advancement.
Additionally, Buquebus will investanother USD 14 million in twochargingstations and transmissioninfrastructuretoprovideelectricitytothe e-ferry, which will have a capacityfor 2,100 passengers and 225 vehicles. The e-ferry will alsofeature a duty-free shop, restaurants, and world-class facilities, includingequipmentforpassengerswithdisabilities. The e-ferry isexpectedto be operational in October 2025.
The construction of the e-ferry has been entrusted to Incat Tasmania Pty Ltd. (Incat), an Australian shipyard with 30 years of experience in high-speed light catamarans. Incat uses renewable energy in all its construction processes, as it is in Tasmania, an island that has maintained net-zero emissions since 2013.
The introduction of the electric ferry is also aligned with Uruguay's Nationally Determined Contribution (NDC) under the Paris Agreement, which includes electric mobility and associated infrastructure as a central element of the country’s mitigation measures. The proposed investment is also aligned with Argentina's NDC, which identified the renewal of its river fleet with alternative energy as a key mitigation measure in the transportation sector.
AboutBuquebus
Buquebus is a leading river transport and tourism company in Argentina, Uruguay, and the Southern Cone. With 45 years of experience and quality service for passengers, its high-speed vessels navigate the Río de la Plata between Argentina and Uruguay, connecting Buenos Aires with Colonia del Sacramento and Montevideo, with daily connections to multiple destinations such as Carmelo, Punta del Este, Piriápolis, and La Paloma, among others. Through its specialized tourism business unit, Buquebus offers customized packages, including hotels, flights, excursions, and transfers to Argentina and Uruguay. Its main objective is to provide passengers with excellent service, ensuring total safety, greater speed, and maximum comfort for a unique travel experience. The company systematically commits to environmental care and social awareness, continuously promoting policies that contribute to a better world. Its purpose is "Connecting much more than two shores."
About Banco Santander Uruguay
Santander Uruguay began operations in 1982. Known for developing a universal banking model through all channels, the institution has established itself as the leading private bank in the country. Currently, it holds a market share of around 30% in private banking. It serves over 500,000 clients and plays a significant role in the card market, offering additional benefits with more than two hundred brands. The institution has more than 40 customer service centers across the country. The bank was recently recognized as the Best Bank in Uruguay by the prestigious financial publication Euromoney.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, the IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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