The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) Project Information Document (PID) Appraisal Stage | Date Prepared/Updated: 30-Mar-2023 | Report No: PIDA35003 Mar 30, 2023 Page 1 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Argentina P178553 Argentina: Clean Energy for Vulnerable Households and Communities Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) LATIN AMERICA AND CARIBBEAN 30-Mar-2023 09-May-2023 Energy & Extractives Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Argentine Republic Secretariat of Energy Proposed Development Objective(s) The objective of the Project is to increase energy access and energy efficiency in vulnerable households and communities and to respond promptly and effectively in case of an Eligible Crisis or Emergency. Components Component 1: Increase energy access in vulnerable households and communities Component 2: Increase energy efficiency in vulnerable households and communities Component 3: Project management and support for policymaking Component 4: Contingent Emergency Response Component PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 448.00 Total Financing 448.00 of which IBRD/IDA 400.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 400.00 Feb 05, 2023 Page 2 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) Non-World Bank Group Financing Counterpart Funding 48.00 Borrower/Recipient 1.00 Local Govts. (Prov., District, City) of Borrowing Country 14.00 Local Beneficiaries 33.00 Environmental and Social Risk Classification Moderate Decision The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context Argentina, with a gross domestic product (GDP) of US$491 billion, was the third-largest economy in Latin America in 2021. The country has a large territory of 2.8 million square kilometers, and its population of about 47 million inhabitants is highly urbanized with 92 percent living in cities. The Buenos Aires Metropolitan Area (AMBA)1 alone constitutes 33 percent of the national population and generates more than 40 percent of Argentina’s GDP. The middle class has historically been large and strong, with social indicators generally above the regional average; however, persistent social inequalities, economic volatility, and underinvestment have limited the country’s development. The rate of urban poverty reached 36.5 percent in the first semester of 2022, and 8.8 percent of Argentines live in extreme poverty. Childhood poverty, for those under 15 years old, is at 50.9 percent. The high frequency of economic crises in recent decades—the economy has been in recessions during 21 of the past 50 years—has resulted in an average annual growth rate of 1.8 percent, well below the world average of 3.6 percent and the region´s average of 3.2 percent Decades of underinvestment have led to sizeable gaps in capital stock relative to comparable countries, although capital spending as a percentage of GDP has slightly improved in recent years. Argentina has struggled with macro-fiscal imbalances since the end of the commodity super-cycle. Even as commodity prices began to fall in 2014-15, Argentina’s public recurrent spending continued to rise. Thin buffers as well as procyclical policies have further exacerbated the impact of external shocks, such as drought, the pandemic, and resurgent fuel prices. By mid-2018, amidst tighter global financial conditions and a poor harvest, growing concerns around Argentina´s debt repayment capacity triggered a run against Argentine assets. This led to a balance of payment crisis and a request for an International Monetary Fund (IMF) Stand-By Arrangement (SBA). Consequently, the COVID-19 outbreak hit Argentina when its economy was still facing macroeconomic imbalances and an uncertain outlook. Following a two-year recession, high inflation, and lack of access to capital markets, the strict lockdown established to contain the spread of the pandemic triggered a GDP loss of 9.9 percent 1 AMBA is the urban area composed of the City of Buenos Aires and 40 municipalities from the Province of Buenos Aires that surround the city. Feb 05, 2023 Page 3 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) in 2020, the largest decline since 2002. In response, the country has prioritized social spending through various programs, including the Universal Child Allowance, a cash transfer that reaches approximately 4 million children and adolescents up to age 18. In a context of restricted market access, financing the response to the pandemic required monetization of the deficit. This has exacerbated macroeconomic imbalances, notably by exerting pressures on reserves, widening the persistent large gap between the official and parallel exchange rate and fueling inflation. Regarding capital market financing, during September-October 2020 the Government of Argentina (GoA) concluded the process of restructuring its debt in foreign currency (both local and external) with private creditors, significantly improving the maturity profile for the next five to eight years. However, debt service obligations as of 2028 are projected to be equivalent in US$ to those before the debt swap in 2020–2021. The economy recovered from the COVID-19 crisis at a fast pace, reaching pre-pandemic activity levels by mid- 2021. Argentina’s economy grew by 10.4 percent in 2021. Higher commodity prices and trading partners’ growth, notably Brazil’s, combined with expansionary domestic policies led to a robust growth recovery. However, since early 2022 the pace of growth has slowed down amidst a more turbulent global context and still large domestic macro imbalances. In this context the authorities requested an IMF-supported program to help the country meet its large balance of payment needs, including those arising from the 2018 SBA. In March-2022, Argentine authorities reached an agreement with the IMF, on an Extended Fund Facility (EFF) program for a period of 30 months and an amount of US$45 billion, to address the economy’s macroeconomic imbalances and set the basis for sustainable growth. Despite meeting all the performance criteria under the IMF EFF by end-2022, downside risks are elevated. Capital controls and deficit monetization continue to cause a large gap between the official and parallel exchange rate and limit foreign reserve accumulation. Inflation accelerated to historically high levels (102 percent year-over-year, as of February 2022), denting purchasing power. While fiscal targets have been met so far, a still sizable fiscal deficit continues to put pressure on monetary policy, given limited access to capital markets. A severe drought is expected to strongly affect agricultural production in 2023, reducing exports and fiscal revenues while limiting the capacity of the CB to accumulate international reserves. Climate change poses additional threats to Argentina’s recovery and exacerbates existing climate vulnerabilities. Average annual temperatures are expected to increase – by 1.5°C by mid-century – together with country-wide annual average precipitation and high variability. As the climate changes, weather related disasters, such as floods, droughts, and heat waves, are likely to increase in frequency and intensity,2 posing additional threats to vulnerable populations, reducing their ability to address them, and impacting the government’s capacity to deliver public services. Climate change will particularly affect the Argentinian energy sector and its climate resilience, as higher temperatures and extreme weather events will impact power generation, especially clean energy sources such as hydro, solar and wind.3 Higher demand resulting from economic growth, industrial expansion, urbanization, and population growth, will also challenge existing power supply systems. Extreme temperatures and weather events will add further complexities due to an overload of demand and could lead to service disruptions and failures to satisfy the energy demand of the most vulnerable populations. Key investments in both energy efficiency and supply for lower income households and communities will need to be scaled up to reduce and satisfy the growing demand and Argentina’s development needs. 2 The World Bank Group, Climate Risk Profile: Argentina, 2021. 3 The World Bank Group; OLADE, Evaluación del Impacto del Cambio Climático en la Generación Eléctrica en los Países del Cono Sur , 2022. Feb 05, 2023 Page 4 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) Sectoral and Institutional Context Despite being an upper middle-income economy4 with a developed electricity sector and power market, Argentina still has a significant share of vulnerable populations lacking access to modern energy services. The country’s total electricity demand (134 terawatt hours per year) is driven by the residential sector, which accounts for 46 percent of power consumption; despite increasing clean energy generation, Argentina still relies on fossil fuels for close to 60 percent of total power supply. Vulnerable households and communities can be found in rural and isolated areas as well as in urban centers. Regardless of key differences, these populations tend to lack access to high-quality, clean, and modern energy services, are in a state of energy poverty and could greatly benefit from increased energy access and (or) energy efficiency. The lack of access to modern energy services impacts health, hygiene, education, and communications, as well as livelihoods and productivity. In the rural context there are roughly 160 thousand households not yet connected to the grid, of which 100 thousand still lack access to electricity while the rest rely on intermittent and unreliable power sources.5 Within this group, the indigenous population is particularly relevant as over a third lack access to the power grid and close to a fifth lives in rural areas. The rural population without connection to the electricity grid has a higher vulnerability index and close 40% of their households (more than the double of total rural households) suffer Unsatisfied Basic Needs (NBI) 6. At the same time, urban vulnerable households (defined –for the purposes of this operation – as those eligible for a highly subsidized wholesale electricity price and who own an old and inefficient refrigerator) represent roughly 4 percent of all households. Lower income households in Argentina devote over 10 percent of their income to energy expenditures .7 Yet, high income households consume roughly twice as much energy as vulnerable ones.8 Median energy expenditures represent over four percent of household’s total income in Argentina.9 Overall, electricity use is responsible for over 60 percent of energy expenditures in Argentinian households and closer to 70 percent in the country’s north10, where over two thirds of households are considered vulnerable.1112 This is particularly pronounced in households led by women, headed by people below 25 or over 65 years of age, and led by individuals with low educational attainment.13 Households led by women are disproportionately vulnerable and have less access to energy services. Most households in the lower income quintile are led by women and consume – on average – 10% less energy than those led by men.14 Gender gaps in energy access and unpaid care work disproportionately affect women. 4 https://datahelpdesk.worldbank.org/knowledgebase/articles/906519 5Cowan Ros & Alba, Población sin cobertura eléctrica básica en Argentina – Principales características demográficas y socioeconómicas, January 2023. 6 According to INDEC, households with Unsatisfied Basic Needs (IBN) are those that present at least one of the following deprivations: i. quality or sufficiency of housing; ii. sanitary conditions; iii. overcrowding; iv. school attendance; v. subsistence capacity (INDEC, 2012). 7 Ibíd., p. 118. 8 Ibíd., p. 69. 9 Ibíd., p. 116. 10 Ibíd., p. 116. 11 Compared to roughly 52 percent of households at the national level. 12 Bonfils & Reibel, p. 142. 13 Ibíd., p. 144. 14 Bonfils & Reibel, Estudio de los patrones de consumo energético de los hogares: Una alternativa para focalizar las medidas de eficiencia energética, 2022. Feb 05, 2023 Page 5 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) Argentina is close to achieving basic universal access to electricity, but dispersed rural, vulnerable households and communities still lack a high-quality energy provision. The isolated and rural electricity sector has been reducing its reliance on fossil fuels thanks to – inter alia – initiatives such as the two successive Argentina Renewable Energy Projects for Rural Areas15 and the National Program for Electricity Inclusion (Programa de Inclusión Eléctrica Nacional, PROINEN). Yet opportunities abound to both reduce the use of diesel in isolated and vulnerable communities and enhance the quality of service to ensure decarbonization, inclusion and gender- related improvements. Households with access to energy services have a sizable impact on Argentina’s energy sector. In 2021, the residential sector represented over one quarter of total final energy consumption, slightly below the transport and ahead of the industrial sectors.16 Energy sources at the urban residential level vary by province and climate, but roughly 60 percent of total final energy consumption is fueled by gas distribution networks, followed by electricity (around 30 percent) and liquified gas (roughly 10 percent); wood, coal, and kerosene share the remaining 2 percent17. On average, urban energy consumption at the residential level is driven by space heating (representing 48 percent of total final energy consumption), water heating (21 percent), and cooking (15 percent). Food conservation represents another five percent and is the main electricity-consuming use (the previously mentioned categories rely mostly on gas).18 In the rural and dispersed and unserved or underserved context, households rely on wood combustion for cooking and heating, kerosene or diesel-fueled appliances, batteries for flashlights and radios, bottled gas and, to a lesser extent, solar heaters and cookers, candles and combustion of dry guano.19 Energy consumption trends are greatly influenced by regional and climate characteristics, as roughly three quarters of Argentina’s households are in temperate, around a fifth in warm and the rest in cold weathers.20 Household’s energy consumption in cooler climates can reach close to four tons of oil equivalent (toe) per year yet less than one toe in households in warm weathers.21 Food conservation appliances (freezer refrigerators, refrigerators, and freezers) represent the largest share of electricity consumption in households across the country. In lower income households – which consume just two thirds electricity as high-income ones –, food conservation represents over a quarter of electricity use.22 Refrigerators are the most common appliance in Argentinian households as most families (over 98 percent across the country and 80 percent in rural contexts) report to have one (including eighty-six owning most common freezer refrigerators)23. Even at the lowest income quintile, over three quarters of households own this appliance (while around 18 percent report to have a refrigerator-only appliance and roughly six percent a freezer only).24 15 PERMER I: Proyecto de Energías Renovables en Mercados Rurales I (Argentina Renewable Energy Markets Project, P006043 and P045048 – grant); and PERMER II: Proyecto de Energías Renovables en Mercados Rurales II (Argentina Renewable Energy Project for Rural Areas, P133288). 16 Secretaría de Energía, Balance Energético Nacional de la República Argentina , 2021, available online at: https://www.argentina.gob.ar/economia/energia/hidrocarburos/balances-energeticos. 17 Secretaría de Energía, Balance Energético Nacional de la República Argentina . 18 Bonfils & Reibel, p. 36. 19 Cowan Ros & Alba, Población sin cobertura eléctrica básica en Argentina – Principales características demográficas y socioeconómicas, January 2023. 20 Ibíd., p. 64. 21 Ibíd., p. 65. 22 Instituto Nacional de Estadística y Censos, Modelo de Demanda de Energía Residencial, 2022. 23 Bonfils & Reibel, p. 91. 24 Ibíd., p. 94. Feb 05, 2023 Page 6 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) While – on average – “A� label refrigerators consume around 330 kWh per year and “A+� equipment use roughly 250 kWh per annum, equipment with over eight years of age can easily reach 700 kWh/yr. 25 According to recent estimates, refrigerators between 11 and 20 years old can use 850 kWh per year on average and older equipment can consume 900 kWh per year on average. Only a quarter of food conservation appliances are less than five years old and close to a third of all food conservation equipment in Argentinian households are over 10 years of age.26 A large majority of households in the country – 75 percent – ignore the energy efficiency label of their equipment (50 percent) or these lack one (25 percent).27 Only five percent of food conservation appliances in the country achieve at least the “A+� label and another 13 percent the just “A� label.28 And roughly one third of users in the new low-income households’ segmentation own equipment of 10 years of age or more and are less likely to own newer, more efficient equipment.29 Overall, vulnerable households are more likely to have equipment of over 10 years of age relative to non-vulnerable families.30 Community centers, such as clubes de barrio y pueblo, community kitchens, communal playrooms, popular libraries, and many other play a key role across Argentina in supporting vulnerable population. In Argentina, these community centers gather citizens of any gender and age and offer nourishment, shelter, and social or recreational activities, especially targetting socially vulnerable children and teenagers. Cognizant of the financial pressure such community centers face to deliver key services to vulnerable populations, these often receive subsidies from the government through lower infrastructure services tariffs, particularly electricity.31 As these centers frequently have an inefficient electricity consumption, this exerts additional pressure in both their own and the government finances. In mid-2022, Argentina started revising tariff structures to better target subsidies to the aforementioned vulnerable groups, reducing pro-rich biases of existing subsidy schemes, lessening their fiscal impact, and supporting the financial viability of the energy sector. Electricity fiscal subsidies originate in the gap between electricity generation costs and the wholesale market operator’s (Compañía Administradora del Mercado Mayorista Eléctrico Sociedad Anónima, CAMMESA)32 selling price – the seasonal price (Precio Estacional de Energía, PEST) – which, for the last few years, has consistently been set below the total cost of energy. In 2021, the average PEST only covered 37 percent of generation costs and resulted in a subsidy of US$46 per megawatt- hour (MWh).33 As tariffs for transmission and distribution are also set below economic costs, entities in these subsectors are cross-subsidizing consumers. By end of 2022, energy (mostly electricity) subsidies had reached 1.9% of GDP or over US$ 11 billion. To reduce such subsidies, the GoA announced in June 2022 a new segmentation of consumers into low, medium, and high-income categories, creating a national registry to access energy subsidies (Registro de Acceso a los Subsidios a la Energía, RASE), and stating their gradual reduction for high- 25 GFA Consulting Group, Informe Final: Propuesta del Plan Nacional de Eficiencia Energética Argentina , 2021, available online at: https://eficienciaenergetica.net.ar/img_publicaciones/09011503_PropuestaPlaNEEAr.pdf. 26 Bonfils & Reibel, p. 154. 27 Ibíd., p. 156. 28 Ibíd., p. 154. 29 Instituto Nacional de Estadística y Censos, Encuesta Nacional de Gastos de los Hogares. 30 Bonfils & Reibel, p. 150. 31 Being classified as Level 2 in the electricity tariffs segmentation, as explained below. 32 A public-private entity owned by the market agents (80 percent) and the State (20 percent). 33 CAMMESA, Informe Mensual Enero. By the end of 2021, the seasonal price was US $26.52 per MWh, and the monomic price US $72.11 MWh. Feb 05, 2023 Page 7 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) income and commercial users. The overall strategy also seeks to increase energy supply and investments to reduce prices, design new tariffs for residential users to further improve subsidy segmentation; and increase the PEST for As one of the early signatories of the Paris Climate Agreement, Argentina has committed to achieving ambitious emission reduction targets since its first Nationally Determined Contribution (NDC) back in 2016. The energy sector alone represents over half of total Greenhouse Gas (GHG) emissions in the country; 34 power generation accounts for 13.1 percent of total emissions and the use of fuels at the residential level is another 7.4 percent; overall, energy use at the residential level representing close to 15 percent of total GHG emissions in the country.35 The sector’s share of total emissions – and its net emissions – have consistently increased since 1990, driven mostly by – amongst other factors – an increase in emissions for the two above-mentioned subsectors: power generation and residential fuel use.36 The country is also committed to expanding clean energy and distributed energy generation in the short and mid-term.37 Supported by the frameworks created by Laws 27.19138 and 27.42439, Argentina has also set the goals of reaching 20 percent of power consumption from renewable sources by 2025 and 1,000 MW of distributed generation by 2030.40 The country is also seeking to reduce energy demand by eight percent – compared to business as usual – by 2030.41To achieve this target, the SE has developed or planned programs for replacing high- electricity consumption household equipment such as solar heaters (CAFEST) and refrigerators and washing machines (RENOVATE)42, for energy efficiency labelling for households and related programs, appliances labelling4344 and minimum energy performance standards (MEPS)4546. Furthermore, the 2019 energy and climate change action plan (Plan de Acción Nacional de Energía y Cambio Climático, PANECC) also includes the SE’s overall objective of ensuring that at least 70 percent of appliances are above the “A+�47 label by 2030.4849 It is estimated 34 Secretaría de Ambiente y Desarrollo Sustentable, Inventario Nacional de Gases de Efecto Invernadero, 2019, available online at: https://www.argentina.gob.ar/sites/default/files/inventario_de_gei_de_2019_de_la_republica_argentina.pdf. 35 Secretaría de Ambiente y Desarrollo Sustentable. 36 Ibíd. 37 Subsecretaría de Energías Renovables y Eficiencia Energética, Principales programas y líneas de trabajo, 2019, available online at: https://www.argentina.gob.ar/sites/default/files/oct2019_brochuresseryee.esp_.pdf. 38 Información Legislativa, Ley 27.191: Régimen de Fomento Nacional para el uso de Fuentes Renovables de Energía destinada a la Producción de Energía Eléctrica, 2015, available online at: http://servicios.infoleg.gob.ar/infolegInternet/verNorma.do?id=253626. 39 Información Legislativa, Ley 27.424: Régimen de Fomento a la Generación Distribuida de Energía Renovable Integrada a la Red Eléctrica Pública, 2017, available online at: http://servicios.infoleg.gob.ar/infolegInternet/verNorma.do?id=305179. 40 As set by the Subsecretaría de Energías Renovables y Eficiencia Energética and Supported by the frameworks created by Laws 27.191 and 27.424. 41 Subsecretaría de Energías Renovables y Eficiencia Energética, Principales programas y líneas de trabajo, 2019, available online at: https://www.argentina.gob.ar/sites/default/files/oct2019_brochuresseryee.esp_.pdf. 42 Ibíd. 43 The energy efficiency labelling system includes seven levels developed with the national standards entity (Instituto Argentino de Normalización y Certificación, IRAM), identifiable by color bars and capital letters: from “A� and green to denote most effic ient equipment, to red and “G� for the least efficient ones. 44 Romero, Ramos & Harari. 45 The so-called IRAM standards also include MEPs for refrigerators. 46 Secretaría de Energía, La Etiqueta, available online at: https://www.minem.gob.ar/www/835/26781/programa-de-etiquetado%20- %20:~:text=La%20etiqueta&text=En%20Argentina%20tenemos%20hasta%20siete,G%20para%20los%20menos%20eficientes. 47 The “A� label can also be subdivided (into A+, A++ or A+++ categories) as newer, more efficient appliances are introduce d. The labels not only provide information about energy use but also include information on the size of the respective food conservation appliance. 48 Romero, Ramos & Harari. 49 Romero, Ramos & Harari. Feb 05, 2023 Page 8 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) that low-cost interventions such as labelling and Minimum Energy Performance Standards (MEPS) can help deliver savings of up to 15 percent in total current electricity consumption per year.50 Furthermore, Argentina has been a leader in complying with the Montreal Protocol, has ratified its Kigali amendment and through several projects – including over 20 years of successful World Bank operations –, has been reducing the use of Ozone-Depleting Substances (ODS) and helping phase out their production and use (including in facilities such as the country’s largest domestic refrigerators manufacturer).51 Investing in increased and improved access to energy services and mini-grids52 to provide a high-quality service would have an important economic and development impact on the quality of life of the most isolated vulnerable Argentinians. Implementing energy service and access measures in vulnerable and dispersed communities would result in multiple social and development co-benefits, such as improving the living conditions of the poorest Argentinians, contributing to economic growth, improving the quality and breadth of social services, increasing adaptation to climate change, and improving overall quality of life. Introducing mini-grids – this is a high-quality and constant service – for the most underserved, dispersed, and vulnerable Argentinians as well as facilitating energy for productive uses will also generate a deeper development impact. Replacing diesel generation and the use of other fossil fuels with clean energy would reduce negative environmental impacts and improve security of supply by reducing dependance on fossil fuels, while reducing health risks associated to air pollution. Adapting dispersed energy infrastructure to extreme weather events to ensure a continuous service would also reduce poorest communities’ climate vulnerability and support the adaptation of drivers of economic growth to climate change. Replacing appliances with a relatively large impact in electricity consumption – particularly in vulnerable households – could have significant positive effects. A large-scale refrigerator replacement program could improve the livelihoods of the poorest, as these appliances are the most common and highest power-consuming appliances and electricity represents the largest energy expenditure for vulnerable households in Argentina. Such an initiative would reduce energy use and allow families to achieve savings; in addition, addressing both appliances energy efficiency and their use of high global warming potential refrigerants at the same time can create virtuous circles and synergies that could result in furthering environmental benefits. In the case of community centers, improving lighting fixtures would also achieve meaningful benefits as lighting represents over half of their electricity bills. As improving energy use would help reduce energy demand, interventions would also help Argentina address its vulnerability to climate change by reducing the potential impact of extreme weather events to energy infrastructure. Furthermore, the interventions at centers such as clubes would also seek to be adapted to extreme weather events to increase their climate resilience and ensure these community centers 50 International Energy Agency, Achievements of Energy Efficiency Appliance and Equipment Standards and Labelling Programmes: A global assessment, 2021, available online at: https://www.iea.org/reports/achievements-of-energy-efficiency-appliance-and-equipment- standards-and-labelling-programmes 51 For further details, see the Montreal Protocol Hydrochlorofluorocarbons (HCFC) Phase-out Project (P129397), available online at : https://documents1.worldbank.org/curated/en/138001546546424758/pdf/icr00004626-12282018-636818904078924831.pdf. 52 “Mini-grids are localized power networks without infrastructure to transmit electricity beyond their service area […and…] tend to r ely on modular generation technologies like solar PV, wind turbines, small-scale hydropower, and diesel generators,� while “stand-alone systems […] are not connected to a grid and typically power single households. These and further details on levelized costs, techno logies and other issues can be found at: International Energy Agency, Defining energy access, 2020, available online at: https://www.iea.org/articles/defining-energy-access-2020-methodology. Feb 05, 2023 Page 9 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) adapt to and their operations are not imperiled by climate change. Overall, both activities would help Argentina mitigate and adapt to climate change. Energy investments can also help Argentina address a wide variety of social and development challenges. In terms of job creation, studies show that energy efficiency interventions have the largest positive impact among energy sector activities.53 As a labor-intensive sectors energy efficiency and solar PV interventions can be key to unlocking Argentina’s sustainable recovery and growth while reducing the need for further capacity expansions, freeing-up additional financing. Investments in other clean energy-related areas, such as new and existing grids can further expand these positive outcomes.54 Recent assessments of potential energy use measures in Argentina show that replacing inefficient refrigerators could create up to sixteen thousand jobs while distributed generation investments could result in twelve thousand new posts.55 Argentina is counting on the World Bank’s support to increase energy access, efficiency, and advise policymakers to address the energy needs of the poorest Argentinians and climate change . Overall, all Project activities will be oriented towards reducing GHG emissions and will help mitigate – or adapt to –climate change either through investments or by facilitating resources, capacities or knowledge through Project management and support to policymaking. The operation will also help enhance service, increase efficiency, and improve the use of energy by vulnerable populations, thus contributing to social and development goals and to reduce the energy sector’s negative impacts. The proposed operation will also help generate valuable information for policymaking and reduce energy bills of Argentina’s poorest citizens, while also fostering economic activity and growth. Overall, these measures would be well aligned and supportive of Argentina’s decarbonization, clean energy transition, energy efficiency and use and climate goals as well as complement GoA’s existing sustainable development agendas and ongoing collaboration and assistance efforts. C. Proposed Development Objective(s) Development Objective(s) (From PAD) The proposed PDO is to increase energy access and energy efficiency in vulnerable households and communities and to respond promptly and effectively in case of an Eligible Crisis or Emergency. Key Results PDO Level Indicators: a. PDO 1: Increase energy access in vulnerable households and communities  People provided with new or increased energy access  Projected fuel savings b. PDO 2: Increase energy efficiency in vulnerable households and communities  People provided with increased energy efficiency 53 International Energy Agency, Energy Efficiency, 2020, available online at: https://www.iea.org/reports/energy-efficiency-2020/energy- efficiency-jobs-and-the-recovery. 54 Ibíd. 55 Romero, Ramos & Harari, Evaluación de Medidas de Eficiencia Energética en Argentina: un enfoque de insumo-producto, 2022, p. 31. Feb 05, 2023 Page 10 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553)  Projected electricity savings D. Project Description The proposed Project will consist of an investment project financing operation to be implemented over 6 years and consist of four components all focused on the design, preparation, and implementation of clean energy interventions for, with, and in vulnerable households and communities. Total Project financing will amount to US$ 448 million, including the US$ 400 million IBRD loan, US$ 33 million in co-financing from beneficiaries and US$ 15 million from other sources such as the GoA and subnational entities. Component 1: Increase Energy Access in vulnerable households and communities (US$ 223 million, of which US$ 193 million IBRD, US$ 17 million beneficiaries, and US$ 13 million others). This component seeks to support interventions that help supply energy and improve suboptimal electricity services in dispersed rural communities in general, and the most vulnerable populations within these communities by targeting both households and public institutions such as schools, health posts or provincial public services centers). Specific activities in this component include – inter alia: (a) the construction of new or replacement or upgrade, of old mini-grids56 in rural communities or isolated population clusters and for vulnerable households, communities or public institutions; (b) the acquisition and installation of standalone second or third generation solar PV systems in rural communities or isolated population clusters for vulnerable households, communities or public institutions; (c) the provision of solar thermal energy systems through, among other things, the acquisition and installation of solar water heaters, in rural communities or isolated population clusters for vulnerable households, communities or public institutions; and (d) the acquisition and installation of solar-powered systems for productive uses such as water pumping, fencing, cooling and other uses in rural communities or isolated population clusters for vulnerable households, communities or public institutions. Overall, it is estimated the component could result in lifetime fuel savings of over 150 million liters of diesel and the generation of close to 2,000 GWh of clean energy in investments lifespan. Component 2: Increase energy efficiency in vulnerable households and communities (estimated cost US$210 million, of which US$ 193 million IBRD, US$ 16 million beneficiaries, and US$ 1 million others). Component 2 will seek to increase energy efficiency across Argentina with a focus on vulnerable households, communities and their community centers (such as clubes, community kitchens, communal playrooms, popular libraries, and many other) through: (a) the replacement of old and inefficient food conservation appliances, as well as their scrapping, by financing and facilitating the provision of new and efficient refrigerators (class A and higher) using gases with low global warming potential, and associated logistics at the residential level57; and (b) the acquisition and installation of efficient lighting fixtures, wiring and associated equipment and minor works as well as the scrapping of old lighting features at the community center level. Overall, it is estimated the component could result in lifetime electricity savings of close to 3,000 GWh. Component 3: Project management and support for policymaking (US$14 million, of which US$13 million IBRD, and US$ 1 million GoA). This component will support Project management and institutional capacity building for implementation and sustainability and improved knowledge, leveraging the GoA’s existing resources and institutional structures. The component will focus on supporting and providing resources for the implementation 56 This activity will not support the upgrade and/or construction of diesel-fueled mini-grids; all subcomponent resources are to be allocated specifically to renewable energy mini-grids that will either replace diesel-fueled systems or provide a new energy service. 57 The country has twenty-six waste operators capable of handling old refrigerators and lighting equipment to be replaced, distributed in eight provinces: CABA, Buenos Aires, Catamarca, Córdoba, Chaco, Entre Ríos, Santa Fe and Tucumán. Feb 05, 2023 Page 11 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) of components 1 and 2, for the overall decarbonization of the energy sector, and for developing training and capacity building activities; performing assessments to inform energy sector guidelines; ensure the incorporation of gender-related and citizen engagement aspects in the operation; develop appropriate and tailored communication strategies; and improve evidence for policymaking. The component will also benefit private actors acting as contractors or suppliers of key services. Component 4: Contingent Emergency Response Component (CERC) (with an initial zero-dollar allocation; if this component is activated, it will be financed by the Loan). This component will allow the GoA to access resources for eligible expenditures in the event of an Eligible Crisis or Emergency to provide an immediate and effective response to said Eligible Crisis or Emergency. Given that Argentina is highly vulnerable to a wide variety of crises, this component will enable the Government to better and diligently respond to such events. Citizen engagement. Throughout its three main components, the Project will develop a pro-active communication and citizen and stakeholders’ engagement strategy that incorporates the principles of using the feedback from beneficiaries (especially women) collected in community consultations in Project design and implementation and communicating those decisions and changes back to the beneficiaries. The strategy will focus on sensitizing the population on behavioral changes that could save energy in households as well as on developing an engagement strategy with the targeted populations and institutions to inform them about the benefits and implications of the planned interventions and to “close the loop� by including their feedback and preferences into the Project. Project monitoring will track the number of beneficiaries and their satisfaction, and their feedback will be included and reported upon during Project implementation. Gender. There are gender inequalities related to the access and use of energy. In Argentina, rural women work 14 hours more per week than men when considering both paid and unpaid hours of care tasks.58 The unavailability of clean energy sources for cooking or clean water in many places can cause women to develop obstructive lung disease and mean an even greater workload for them (ECLAC, 2021). In addition to their caring roles, women in rural areas are also responsible for productive activities to contribute to the household economies such as grazing and raising of animals; making by-products; among others. The lack of energy access creates additional difficulties to undertake such work.59 This can be tackled by actions to be undertaken as part of this operation, detailed in a Gender Action Plan designed for the Project. Climate change. All Project activities aimed at reducing GHG emissions and are clearly aligned with Argentina’s green growth agenda as all components aim to support the development of energy efficiency measures which will help decarbonize Argentina’s economy. In addition, investing in improved access infrastructure can help reduce the vulnerability of the sector – particularly in dispersed and rural communities and community centers to extreme weather events caused by climate change. Furthermore, enhancing consumption and use can also result in improved planning and reduced demand growth, helping free-up resources to adapt infrastructure and reducing reliance on fossil fuels and other resources. Conducting assessment on issues such as adaptation to climate change, energy connections safety and vulnerability to extreme weather events will also help improve Argentina’s preparedness and climate resilience. Finally, the Project is fully aligned with the objectives of the Paris Agreements 58 Secretariat of Family, Rural and Indigenous Agriculture. Plan for Women of Family, Rural and Indigenous Agriculture “Plan En Nuestras Manos�. 2020. 59 Alegre, Silvina, et. al. New generations of rural women as promoters of change. A quantitative-qualitative study of the situation of young rural women, their needs and opportunities in Argentina. 2015. Feb 05, 2023 Page 12 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) as it supports Argentina’s decarbonization by investing in net zero GHG emissions activities and in the displacement of GHGs and as it identifies, assesses, addresses, manages, and considers climate risks. Private sector participation. Finally, the Project supports interventions that will call for the participation and involvement of private actors. These activities include in, for example, investments in renewable energy generation that will facilitate the inclusion of users and technologies into existing – mostly private – distribution companies’ networks and thus improve these entities finances, services, and customer base. Furthermore, as the replacement of refrigerators includes existing producers, retailers and logistics companies, their bottom lines will improve while also creating further opportunities for the marketing of other efficient equipment – and showcasing the advantages of energy efficiency. Finally, the operation also creates further economic activity in the clean energy sector, spurring new investments and reactivating growth in the access technologies, appliances, and fixtures segments. . . Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Assessment of Environmental and Social Risks and Impacts . At the current stage, Project environmental and social risk classification is Moderate. An Environmental and Social Assessment (EAS) was drafted before appraisal, to identify and characterize the main environmental and social risks and impacts related to all 4 project components throughout the project life cycle. Additionally, a Stakeholders Engagement Plan (SEP) and the Project Environmental and Social Commitment Plan (ESCP) were drafted. The SEP and ESA have been publicly disclosed and consulted prior to appraisal. Specific subprojects have not been identified before appraisal and therefore the specific sites, environmental and social conditions, risks and impacts of each subproject are not known. Considering this, the ESCP stipulates that an Environmental and Social Management Framework (ESMF) shall be prepared, including a screening process for subprojects. It will, as well, include guidelines to implement the mitigation hierarchy to manage risks and impacts; and will require the development of subproject-specific Environmental and Social Management Plans (ESMP), which shall be reflected in the respective bidding documents. The ESMF will also include an exclusion list describing activities and investments that shall be ineligible to receive support under the Project. The ESMF will be developed, disclosed and subject to consultations before Project effectiveness, as stipulated in the draft project Stakeholders Engagement Plan (SEP) and the ESCP. Likewise, the project Environmental and Social Commitment Plan (ESCP) requires a specific CERC-ESMF addendum to be annexed to the ESMF, setting up the guidelines to assess and manage the environmental and social risks and impacts of component 4 investments, to be developed, disclosed, consulted and adopted before such component can be implemented. Additionally, the ESCP requires Project Labor Management Procedures to be adopted by the SE and relevant partners, including provisions on working conditions, management of workers relationships, occupational health and safety, and a specific grievance mechanism for Project workers. Feb 05, 2023 Page 13 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) Based on the findings of the ESA, environmental risk is deemed Moderate. The project will support the development of energy efficiency measures thus reducing reliance on fossil fuels and other resources. Enhancing energy use interventions are expected to generate emission reductions as well as savings for final beneficiaries and the GoA. As improved energy efficiency would result in a decreased energy consumption and in the use of equipment relying on refrigerants with low global warming potential, activities will reduce GHG emissions associated to electricity generation as well as those that would arise from the use of highly pollutant gases. The project will also help improve the quality of energy services, particularly through better refrigeration equipment in households and enhanced lighting in community centers such as Clubes (community centers), thus creating greater awareness on the positive and multiple impacts of energy efficiency. Planned activities will also help enhance local supply chains and energy efficiency services markets as the Project will rely on these for implementing the replacement of old refrigerators at the household level and lighting fixtures in community centers. However, given the nature and scale of planned activities, low to moderate environmental, health and safety risks; and adverse impacts are expected under Components 1 and 2. Under Component 1 such expected risks and impacts are related to investments in infrastructure and productive equipment (mostly those for solar water pumping and electric fencing). Even though these interventions would be small scale, low to moderate site-specific environmental, health and safety risks and adverse impacts could occur. These include, among others: increased risk of occupational incidents and accidents; nuisance on the neighboring and minor community health and safety issues during works; impact to physical assets (including cultural heritage) due to soil-movement and use of heavy equipment during works; punctual environmental pollution events (e.g., fuel and oil spills from machinery); and in some cases (e.g., pumping investments in very small and confined waterbodies) site-scale replacement or degradation of habitats, punctual impacts on biodiversity (at the level of individuals or small groups), water quality, or increased competition with other users of the natural resources might be induced. Most mitigation and management measures for such risks and impacts are readily available, and the SE has some prior experience implementing them. Under Component 2, key risks and potential impacts are related to the management of the residues from scrapped replaced appliances, particularly the handling of certain hazardous substances such as chlorofluorocarbons contained by old refrigerators and mercury in lighting fixtures. In this context, environmental risks and potential impacts are predictable and expected to be site-specific, not complex, and are not expected to cause serious adverse effects to human health or the environment; and are easily mitigated by applying routine and accessible measures and safety precautions including, as applicable, the adoption of Good International Industry Practice (GIIP) as defined in the World Bank Group Environmental, Health and Safety Guidelines (WBG EHSGs). At appraisal, downstream adverse environmental effects of the pre-identified technical assistance activities to be conducted under component 3, and of eventual investments under the contingency emergency response component 4 are, in principle, not deemed significant. Based on the findings of the ESA, social risk is deemed Moderate. The Project seeks to generate positive social impacts through the improvement of households, communities, rural populations and different types of public spaces. Component 2 is expected to improve energy efficiency in the residential sector with focus on lower- income population and women, through the replacement of inefficient appliances and lighting fixtures, including substituting over 15-year-old refrigerators with the latest, most efficient (“A� class) equipment in vulnerable households, as well as exchanging incandescent and fluorescent lamps with LEDs in community centers. This will be conducted on a voluntary basis and at reduced or no cost to the beneficiaries. Social risks under this component are associated with the potential exclusion of the most vulnerable population if beneficiaries are not identified properly. A detailed Stakeholder Engagement Plan was prepared to mitigate this risk by properly Feb 05, 2023 Page 14 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) identifying affected parties, including vulnerable population, and carrying out consultations to inform them and influence project design and implementation in an efficient manner. Component 1 activities may involve total and/or partial acquisition of land and displacement of economic activities. The risk of physical displacement of people at an individual or household level is low, whilst the possibility of displacing communities is not anticipated. To mitigate these risks, a Resettlement Policy Framework (RPF) and, when necessary, Resettlement Plans (RP) will be prepared. The RPF will detail voluntary land donation and willing buyer/willing seller processes, in accordance with ESS5, to structure and guide those cases where land transactions with or donations from private owners might occur. Finally, an Indigenous Peoples Planning Framework (IPPF) is being prepared to address the risks and impacts related to urban and rural indigenous populations that may be affected by Components 1 and 2. Regarding component 1, in case that indigenous peoples are present in specific subproject areas of influence, a site-specific Indigenous Peoples Plan (IPP) will be developed. Economic or physical displacement of indigenous communities is not anticipated, however should it be required, the RPF will ensure requirements of ESS7 will be complied, including obtaining FPIC. The design of specific subprojects will ensure that any project activities adversely affect Indigenous Peoples cultural heritage. Regarding component 2, risks are mainly related to social communication and engagement, and can be easily mitigated by planning a robust participation plan and communication strategy aimed at including indigenous peoples in an efficient and culturally appropriate manner. Risks on sexual exploitation and abuse/sexual harassment (SEA/SH) are expected to be low and mainly related to labor issues and workers for works under components 1 and 2, particularly construction works under the former. They will be mitigated through measures set in the ESMPs for both activities and LMP applicable to all Project activities, including the Code of Conduct that will be applicable to all Project workers. The risk of child labor in relation to the Project is negligible. However, at global level, there are allegations of forced labor risks associated with the polysilicon (a key input for the solar panels production) suppliers, some of which might end up supplying the project. The ESF prohibits use of Forced Labor in any Bank financed projects to which ESS2 Labor and Working Conditions applies. The Borrower will require bidders to provide two declarations: a Forced Labor Performance Declaration (which covers past performance), and a Forced Labor Declaration (which covers future commitments to prevent, monitor and report on any forced labor, cascading the requirements to their own sub-contractors and suppliers). In addition, the Borrower will include enhanced language on forced labor in the procurement contracts. The SEP describes the specific Grievance Mechanism (GM) for addressing project-related concerns and grievances during the project preparation and implementation. The GM is based in existing channels (such as the 0800 telephone line from the Ministry of Economy, and WhatsApp from PERMER II - Renewable Energy for Rural Areas Project, P133288) and incorporates new channels to submit grievances and receive responses such as the Kobo ToolBox (online surveys). In line with ESS7, and especially for component 1, the GM seeks to be culturally appropriate and accessible for indigenous peoples, taking into account their customary dispute settlement mechanisms. Finally, the project GM also includes relevant SEA/SH considerations and protocols to properly respond and/or refer to the corresponding governmental service that could provide a proper response for the survivors. E. Implementation Feb 05, 2023 Page 15 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) Institutional and Implementation Arrangements The overall implementation of the Project will be the responsibility of the SE, through a PCU which will be responsible for coordinating all activities. The Unit will perform most technical, management, reporting and monitoring and evaluation (M&E) tasks while the MECON’s Office of Sectorial and Special Programs and Projects (Dirección General de Programas y Proyectos Sectoriales y Especiales, DIPROSE) will be responsible for fiduciary activities. The Unit will coordinate the launch of bidding processes for the procurement and installation of goods, works, and services and design overall guidelines for participation in all components. Loan funds will be centrally managed, and payments will be made directly by the PCU to contractors or indirectly to beneficiaries – through appliances providers participating in component 2.a – upon review of supporting documentation. The PCU will also monitor compliance with all environmental and social regulations and monitor implementation of the subprojects and tasks, compiling information from the various implementation areas and activities. As the proposed operation will be the first one for the SE to be implemented under the WB Environmental and Social Framework (ESF), strengthening measures on environmental and social management will be identified and accordingly reflected in the Environmental and Social Commitment Plan (ESCP). Further details are summarized and presented below as well as in Annex 1. Project implementation will be done following a spiderweb approach, moving forward first when and where local conditions are appropriate and Project activities are more likely to succeed. Under such approach, component 1 activities will be deployed with the provinces that both have sizable vulnerable populations and are prepared to sign participation agreements. In the case of component 2, the replacement of appliances and lighting fixtures will be done first when and where appropriate scrapping and logistics can be ensured. A Project Operational Manual will be developed prior to Project effectiveness to further define implementation approach, criteria, and mechanisms. The Manual will also fully detail interventions and overall Project management, legal, procurement, financial and environmental and social procedures. Energy provision and efficiency measures and processes to be supported as well as eligibility and prioritization criteria will be further defined based on capacities, cost effectiveness, expected savings and subsidy levels, contributions to emissions reductions, environmental and social requirements, and technical standards. The SE, through the PCU will be responsible for executing, coordinating, monitoring, and reporting on all component 1 activities. Provinces will also have a significant role in the component and will participate through Provincial Executing Units (PEUs) in Project implementation. These units – to be typically located in province’s energy agencies – will be responsible for identifying demand, designing subprojects, ensuring in coordination with SE, environmental and social compliance and supervising implementation in their jurisdictions, as well as ensuring operation and maintenance. PEUs and provincial entities will also be targeted under component 3 activities to provide additional capacity building and technical assistance activities. Province’s roles and responsibilities will be defined through participation agreements to be agreed upon during implementation and including technical, economic, financial, environmental, and social roles and responsibilities. It is expected that most of these institutions will provide counterpart funding to the component. In addition to these key stakeholders, several other entities at the national and provincial level will also have key roles in the implementation of component 1. At the national level, these would include the Ministries of Education, Tourism, Environment or Agriculture as the component could target institutions (schools, primary health posts) or activities (agricultural productive uses) regulated, managed, operated or supported by these agencies. At the subnational level, additional entities involved would include provincial regulators, as these are Feb 05, 2023 Page 16 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) tasked with ensuring compliance of distribution companies with their concession contracts, supervising service quality, addressing complaints from users and certifying the incorporation of new users; distribution companies, as these are responsible for the operation and maintenance of the electricity supply in specific areas, collecting fees from beneficiaries and overall helping ensure the sustainability of planned activities; provincial environmental agencies, as these are tasked with enforcing relevant regulations; and municipalities, which could support the execution of component activities by engaging with Provincial authorities. The SE, through the PCU will be responsible of executing, coordinating, monitoring, and reporting on all component 2 activities. The SE will finance and implement activities under component 2 and work on identifying potential beneficiaries which would include: i) households in the low-income segment of the RASE or successors or similar mechanisms and which own food conservation equipment of 15 years of age or older; or ii) community centers with a subsidized electricity tariff. Subcomponent 2.1 activities will rely on existing markets and sales channels . Collaboration and communication with sector actors such as provincial authorities, distribution utilities or others to be defined, will also be sought to enhance targeting of potential beneficiaries and to improve the RASE database. Targeted beneficiaries will receive a voucher – the item to be financed using IBRD loan proceeds – covering most of the cost of a new and efficient appliance – as well as all associated logistical and scrapping costs, which will be already contracted by the SE –by surrendering the old and inefficient equipment and after only paying the remaining costs (using any acceptable payment method, including financing programs offered by the store itself or current government programs such as Ahora 12). Participating retailers will sign framework (adhesion) agreements and coordinate with selected logistical services providers for the delivery of the new equipment, while the latter will also dispose of the replaced goods in waste management centers. Finally, those centers will present a scraping certificate to the SE to receive the corresponding payment In the case of subcomponent 2.2 activities, the lighting fixtures to be replaced – as well as wiring and associated equipment and minor works – will be fully financed by the SE. When necessary and convenient, the SE will seek to coordinate and discuss the interventions with relevant subnational authorities or – for example – distribution utilities to improve targeting of clients, appropriate communication strategies and potentially obtain feedback. The SE will establish framework agreements with potential energy efficiency service providers that would perform all relevant activities (specific assessments, replacement of lighting fixtures, appropriate waste disposal at established waste management centers) for a set of community centers to achieve economies of scale. The SE will also work on defining certification mechanisms and on signing a collaboration agreement with the National Institute for Industrial Technology (Instituto Nacional de Tecnología Industrial, INTI) to further engage with community centers and promote their adoption of new and efficient technologies and monitor the results of the implementation. To participate, community centers will need to be registered in relevant databases, such as the Secretariat of Sports database for clubes, benefit from the N2 electricity subsidy provided by the SE and currently provide social services (such as community kitchens or similar). Component 3 will be implemented by the PCU and supported by DIPROSE, which will launch bidding processes for the procurement of relevant human resources, equipment, or tasks, including training and capacity building activities and assessments as well as for any goods, works, or services linked to these analyses . As activities under component 3 could also be carried-out with or for other entities beyond SE or the Federal Government and to test new methodologies and technologies, ad-hoc collaboration agreements could be sought, if needed. Feb 05, 2023 Page 17 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) . CONTACT POINT World Bank Lucia Spinelli Senior Energy Specialist Borrower/Client/Recipient Argentine Republic Implementing Agencies Secretariat of Energy Sofia Simon Project Leader ssimon@mecon.gov.ar FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Lucia Spinelli Approved By Practice Manager/Manager: Country Director: Paul Procee 03-Apr-2023 Feb 05, 2023 Page 18 of 19 The World Bank Argentina: Clean Energy for Vulnerable Households and Communities (P178553) Feb 05, 2023 Page 19 of 19