The Bus Supplier K Cuatro SpA, a special purpose company that was awarded a Bus Supply Contract for the acquisition of 992 electric buses that operate the RED System of the Metropolitan Region of Chile, will receive 13-year term financing for up to 127 million dollars.

The financial structure, involving IDB Invest together with the co-lenders International Finance Corporation (IFC) and Banco del Estado de Chile, is aimed at reducing polluting emissions and thus improving Santiago’s air quality. It is estimated that around 31 thousand tons of CO2 per year will be avoided by replacing diesel buses with electric buses.

In addition, IDB Invest will provide technical assistance to carry out a technical analysis on second uses and recycling of batteries in electric buses, as well as leading trainings on electromobility and decarbonization of public transportation.