CRRC and Argentina's SOFSE sign Memorandum of Understanding pledging a loan for Argentine Railway Cars acquisition

On December 11, 2020, CRRC Corporation Limited and Argentina's State Railway Operating Company (Operadora Ferroviaria Sociedad del Estado, SOFSE) signed a Memorandum of Understanding on Cooperation on Procurement of Passenger Railway Cars to Obtain Chinese Loans. This MoU reportedly included provisions for potentially receiving Chinese financing in the future for the acquisition of train cars from CRRC. As of October 2022, however, there is no evidence that financing has been secured, nor the train cars even officially purchased. More specifically, the MoU discussed the acquisition of 111 cars for the Belgrano Sur line, in addition to spare parts, tools, and technical assistance and training; 45 electric cars for the Sarmiento line; and 20 electric and 90 diesel cars for the Mitre line. In addition, all lines were to have access to rails, track devices, and technology for railway operation. These improvements were expected to benefit the Buenos Aires Metropolitan Area. The total expected cost was 490 million USD. The signing ceremony took place at the Argentine Presidential Palace in Buenos Aires and was attended by the President.

Additional details

1. The Chinese name for the Memorandum of Understanding on Cooperation on Procurement of Passenger Railway Cars to Obtain Chinese Loans is 和关于采购客运铁路车厢获得中国贷款的 合作谅解备忘录. 2. At the same event on December 11, 2020, three additional agreements related to railways were signed between Argentine government entities and Chinese state-owned enterprises. However, of the four agreements, only the MoU with CRRC indicated a pledge of future Chinese official financing. The others appear to be agreements related to project implementation or investments.

Number of official sources

4

Number of total sources

5