Argentina - Second Habitat and Urban Land Project

Overview & Synopsis

The development objective of the Second Habitat and Urban Land Project for Argentina is to: (i) promote formal and planned urban growth in selected cities; (ii) improve living conditions for households in selected precarious urban settlements; and (iii) respond effectively in case of an eligible crisis or emergency. The cancellation was designed to promote formal and planned urban growth, improve living conditions in informal settlements, and strengthen resilience to crises and emergencies. However, following a change in government administration in December 2023, national policy priorities shifted toward economic stabilization and expenditure rationalization, resulting in the deprioritization of housing and urban upgrading programs. The implementing agency, the Secretariat of Habitat, underwent significant institutional restructuring, including leadership and staffing changes, while a freeze on new federal housing commitments further constrained implementation. Although the World Bank explored restructuring options, including transferring implementation responsibilities to provincial entities, no viable path forward emerged. Consequently, project implementation did not progress beyond the disbursement of the front-end fee, leading to the cancellation of the operation.