IFC and Banco Santander Support Electric Ferry Project Connecting Argentina and Uruguay

Alfonso Garcia Mora, IFC Vice President for Europe, Latin America, and the Caribbean, highlighted the significance of the project.

The International Finance Corporation (IFC), a member of the World Bank Group, has signed a $67 million partial credit guarantee with Buquebus (Los Cipreses S.A.) for the construction of the world’s largest electric ferry, China Zorrilla. This groundbreaking project will connect Buenos Aires, Argentina, and Colonia del Sacramento, Uruguay, with financing provided through a $107 million loan from Banco Santander Uruguay.

This initiative represents the first "blue operation" in Uruguay and the inaugural venture into the maritime and electric transport sectors globally. The term "blue loan," a concept developed by IFC, refers to investments aimed at enhancing water management, reducing plastic pollution, restoring marine ecosystems, promoting sustainable maritime transport, ecological tourism, and marine renewable energy.

Juan Carlos López Mena, President of Buquebus, emphasized the company’s commitment to sustainability. “At Buquebus, we believe the future hinges on sustainability and efficiency. Our goal is to reduce greenhouse gas emissions through cutting-edge technologies. We are excited about this partnership with Banco Santander and IFC, which supports our mission to achieve Zero Emissions with this innovative vessel.”

Gustavo Trelles, Country Head of Santander Uruguay, reaffirmed the bank's dedication to sustainability. “We are committed to actionable solutions, not just promises. Our financing tools are designed to support progress, investment, and the green transition. Our decade-long partnership with Buquebus reflects our commitment to fostering business growth and sustainability.”

Alfonso Garcia Mora, IFC Vice President for Europe, Latin America, and the Caribbean, highlighted the significance of the project. “This innovative e-ferry will be the largest of its kind and is a major milestone for emerging economies. It will inspire other regions to invest in electric transportation, which is crucial for reducing greenhouse gas emissions, a sector responsible for about 25% of global emissions.”

The project will reduce carbon dioxide emissions by 37,545 tons annually and supports the World Bank Group’s efforts to make transportation in Latin America and the Caribbean more sustainable. This initiative continues Banco Santander’s support for Buquebus’s sustainability goals, following their earlier financing of the Francisco vessel, which operates on cleaner Liquefied Natural Gas (LNG).

Buquebus will also invest an additional $14 million in charging stations and infrastructure to power the e-ferry, which will accommodate 2,100 passengers and 225 vehicles. The ferry, equipped with world-class facilities, including duty-free shops and accommodations for passengers with disabilities, is expected to begin operations in October 2025.

The construction of the e-ferry will be handled by Incat Tasmania Pty Ltd., an Australian shipyard known for its use of renewable energy. The project aligns with Uruguay’s and Argentina’s Nationally Determined Contributions (NDCs) under the Paris Agreement, focusing on electric mobility and sustainable fleet renewal as key mitigation measures.