Montevideo, Uruguay – In a major step toward low carbon mobility, the United Nations Industrial Development Organization supported the deployment of 50 electric buses in Montevideo through its Renewable Energy Innovation Fund (REIF), accelerating Uruguay’s transition to cleaner and more inclusive public transport.
Implemented by UNIDO in collaboration with the United Nations Resident Coordinator’s Office in Uruguay, UN Women, UNDP and national partners, the REIF leveraged concessional finance and technical assistance to mobilize private investment for sustainable transport solutions.
In partnership with BBVA and national stakeholders, the initiative supported Cutcsa, Uruguay’s largest urban bus operator, in expanding its electric fleet. Cutcsa operates 67 per cent of Montevideo’s buses and serves 65 per cent of passengers in the Metropolitan Area. With this expansion, the company reached its target electrifying 25% of its fleet by 2025, in line with Uruguay’s national strategies for sustainable mobility.
The project combined 93 per cent financing from BBVA with 7 per cent concessional co financing from the REIF. Over a 12-year period, the initiative is expected to avoid more than 42,500 tons of CO₂ emissions, improving air quality while strengthening access to modern and efficient public transport.
“Through the REIF, UNIDO demonstrates how concessional finance and technical expertise can unlock private investment for climate action,” said Manuel Albaladejo, UNIDO Representative for Argentina, Chile, Paraguay and Uruguay. “This initiative shows how strategic partnerships can accelerate decarbonization while delivering tangible benefits for people and cities.”
Gender inclusion formed a core component of the initiative. Women represented 16 per cent of those involved in the development, deployment and operation of the electric fleet. In addition, the Fund provided non reimbursable technical assistance to support Cutcsa in conducting a gender pay gap assessment and identifying opportunities for organizational improvement.
Juan Antonio Salgado, President of Cutcsa, reaffirmed the company’s long-term vision: “Cutcsa has a firm commitment to contributing to the decarbonization of the environment. This is why we are working toward a clear goal: achieving a 100 per cent electric fleet by 2040.”
Alberto Charro, former Executive President of BBVA Uruguay, highlighted the value of the partnership: “By combining financial structuring with technical support and access to international funds, we were able to provide stronger backing for Uruguay’s sustainable development.”
Fernanda Cardona, Minister of Industry, Energy and Mining of Uruguay, emphasized the broader policy context: “We are shaping a clear path toward a decarbonized and innovative economy with opportunities for all territories. Aligning the State, international cooperation and the private sector is essential to accelerate the transformations our country needs.”
By combining concessional capital, private sector financing and targeted technical assistance, the REIF illustrates how blended finance can catalyze scalable climate solutions and support countries in advancing sustainable industrial development.
READ MORE: https://www.unido.org/news/unido-supports-uruguays-public-transport-electrification-through-innovative-financing-partnership
