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PROJECT INFORMATION DOCUMENT (PID) 
CONCEPT STAGE 
Report No.:  AB3931 
Project Name 
AR PERMER Renewable Energy Additional Financing 
Region 
LATIN AMERICA AND CARIBBEAN 
Sector 
Renewable energy (89%); Sub-national government 
administration (11%) 
Project ID 
P110498 
Borrower(s) 
GOVT ARGENTINA 
Implementing Agency 
 
Environment Category 
[
]
A
[X] B   [ ] C   [ ] FI   [ ] TBD (to be determined) 
Date PID Prepared 
May 28, 2008 
Estimated Date of 
Appraisal Authorization 
July 15, 2008 
Estimated Date of Board 
Approval 
October 2, 2008 
1. 
Key development issues and rationale for Bank involvement 
 
The request for Additional Financing for PERMER responds to the needs to scale up current 
Project activities as the demand for rural electricity services grows.  Given the successful 
business model that has been put in place, as recognized by the Government at both the Federal 
and Provincial levels, there is a desire to continue implementation of PERMER through 
additional financing from the World Bank. 
An Additional Financing operation is deemed to be the most effective way to build on the current 
momentum and respond within the shortest time, to the immediate demand and opportunity to 
enhance the development impact of the project. In particular, this would be for three reasons: 
(i) scaling-up of a well-performing Project; (ii) continuity of the program; and (iii) bridge 
financing. The proposed additional activities are expected to be completed by December 31, 
2011, three years after the closing date of the original IBRD loan (December 31
st
 , 2008). 
 
2. Proposed objective(s) 
The Additional Financing operation would support the same type of activities carried out under 
the original operation, including those added with the approval of six amendments to the original 
loan and grant agreements during the period of project implementation.  Specifically the 
objectives are the following: (a) to provide rural areas with reliable electricity supply in a 
sustainable manner using renewable energy technologies, when feasible; (b) to support the 
creation of sustainable business operations for rural energy in Argentina; (c) to support the 
expansion of private sector participation in the provision of electricity in rural areas and the 
corresponding strengthening of provincial government capacities to regulate private sector 
participation; and (d) to advance the reform of the energy sector in critical areas.   
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3. Preliminary 
description 
The scaling up of the original project focuses on an expansion of scope.  Under the scaled-up 
activities, the AF is expected to support the installation of 13,726 solar home systems, 21 
mini-grids, 138 solar-thermal systems, 606 solar PV systems to supply rural schools and public 
services, 30 solar powered water pumps and 2 biomass generation projects. It is estimated that 
about 18,926 households be benefit from the proposed scale-up of Project activities. The 
scale-up activities will also continue supporting key technical assistance activities as well as 
Project administration expenses. 
The activities that are expected to be included under the technical assistance component of the 
AF are: (i) public promotion, education and information campaigns; (ii) feasibility studies of new 
rural electrification initiatives (Provinces of Mendoza, San Luis, La Rioja, Catamarca and 
Chaco); (iii) assessment of least cost, renewable technology options to supply mini-grids; 
(iv) pre-feasibility and feasibility studies for the development of mini-grids; (v) energy sector 
studies for particular critical areas; (vi) rural electrification market assessments; (vii) technology 
market assessments; (viii) 
feasibility assessment for biomass-based electrification; and 
(ix) project administration. 
 
4. 
Safeguard policies that might apply 
In addition to O.P. 4.01 on Environmental Assessment, the proposed operation would trigger 
O.P. 4.10 on Indigenous Peoples. 
 
The operation would remain a Category B project and an appropriate Environmental and Social 
Management Plan (ESMP) including an Indigenous Peoples Planning Framework (IPPF) for the 
expanded activities has been developed in accordance with the national regulations and the 
Bank’s safeguard policies. As with the current Project, the proposed operation poses no 
resettlement, land acquisition or significant social development issues.  As the overall objective 
of the project is to improve access to rural energy services, it is expected to have a positive net 
social impact on the rural poor. 
 
5. Tentative financing 
Source: (US$m) 
Borrower 4.8 
International Bank for Reconstruction and Development 
50.0 
Total 
54.8 
 
Contact point 
Contact: Todd M. Johnson 
Title: Senior Energy Specialist 
Tel: (202) 458-2435 
Email: 
Tjohnson@worldbank.org
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