Natural Gas for Poor Communities in Argentina

-Project status: Active
-Sectors: For-profit Activity
-Funding source: Private Investment Funded | Philanthropy Funded | Government Funded
-Location of project: Argentina | Latin America
-Project type: Energy Activity

Managing Organization: Fundacion Pro Vivienda Social

Managing Organization URL:
http://www.fpvs.org



Natural Gas for Poor Communities in Argentina

Contact Name: Raúl Zavalía

Contact Email: info@fpvs.org

Contact Phone: (54-11)4667-2794 or 4451-8187

Contact Address: Sucursal San Miguel Roca 1032 –1663 - San Miguel – Provincia de Buenos Aires


Affiliated Organizations: Asociación Mutual El Colmenar


Related URLs:
http://web.worldbank.org/WBSITE/EXTERNAL/OPPORTUNITIES/GRANTS/DEVMARKETPLACE/0,,contentMDK:20690439~pagePK:180691~piPK:174492~theSitePK:205098,00.html


Activity Description: Argentina produces and exports natural gas, which is one of the most efficient forms of combustible fuel. Poor communities have little access to this form of fuel because distribution networks are concentrated in population areas where income is high. The poor population satisfies its energy needs by purchasing liquid gas, firewood, kerosene, or electricity--and then pay higher prices (nearly half their monthly income) than wealthier areas.

But with the a help of Development Marketplace grant, five neighborhoods in the greater Buenos Aires area are now accessing natural gas through a local distribution network that brings clean, efficient power to underserved communities.

A coalition of 45 local community organizations came together to ensure payment to the gas company and Fundacion Pro Vivienda established an independent trust fund to provide residents with loans to enable them to make their payments. Local residents were hired for the project’s labor and staff needs. It is estimated that the substitution of existing fuels with natural gas will decrease average family fuel expenses by 75 percent.

The initiative has received both public and private support, as the Argentine Ministry of Social Development and a private gas company, Gas Natural Ban S.A., have provided further funding.

Fundacion Pro Vivienda Social won an award from Development Marketplace in 2002.
Submitted by Development / MicroCredit on June 9, 2008 - 13:46.
Just received some information on this group and they have a very innovative approach - after they put up the initial capital for the infrastructure investment, neighbors pay back the loan **with the money they're already saving on gas** as their cost of living falls by about 7%! They then use the neighbor-organization system developed for gas to involve the private sector in other projects like developing clean sewage systems. Well done!

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