Light Rail Network Expansions
Mendoza Received a $16.9 Million Loan to Expand its Rail Services
Colin Smith — September 11, 2025
The provincial government of Mendoza, Argentina secured a green loan of 23 billion pesos (approximately 16.9 million USD) from Banco Santander Argentina to fund the third and fourth phases of its light rail network expansion. The project will extend the existing 17.6 km system by 4.8 km to El Plumerillo International Airport, expected to be operational later this year, and by 15 km southward toward Luján de Cuyo, scheduled for completion in 2027. The five-year bilateral loan includes a one-year grace period and is backed by federal revenue-sharing guarantees. It complies with the Loan Market Association’s green loan standards to ensure transparency and measurable environmental impact in the use of funds.
The light rail expansion is positioned as a sustainable transport solution aimed at reducing reliance on private vehicles, improving air quality, and lowering carbon emissions across the Mendoza region. By offering extended service to outlying communities and the airport, the project enhances mobility equity and supports social inclusion through affordable public transit access. As part of Mendoza’s broader urban development strategy, the initiative aligns with efforts to modernize infrastructure while advancing environmental goals and positioning the city as a leader in sustainable transport in Argentina.
