Argentina fiscal woes hinder Mendoza’s electromobility ambitions

The dire fiscal situation in Argentina is hampering the ability of provincial governments to advance with electromobility projects, according to the head of Mendoza province’s bus and light rail operator (STM).

“We would wish for the economic and financial conditions of our country to allow us to work on [electromobility], and for better links between the public and private sectors,” STM president Daniel Vilches told BNamericas at the Latam Mobility: Chile 2022 summit. The event is taking place in Santiago on Tuesday and Wednesday.

Mendoza was the first province to introduce electromobility in its public transport with the acquisition of 18 busses, and the experience has been “very good,” Vilches said. 

He lamented that there is no financing at the federal level for electromobility, while 85% of transport subsidies are concentrated in the metropolitan area of Buenos Aires. The remainder has to be divided among 23 provincial administrations. 

Transport subsidies were a mayor point of contention in the drafting of the updated 2022 national budget, as provinces requested more financing. 

Vilches said talks are now advancing for the creation of a new federal entity that would have representatives from all provincial transport authorities. 

“The objective is to recalibrate the subsidy policy, with an autonomous mechanism which provides a more equal distribution,” he said.