Uruguay - Third Livestock Development Project

RESTRICTED Report No. P-947 This report is for official use only by the Bank Group and specifically authorized organizations or persons. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the. rcport. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLICA ORIENTAL DEL URUGUAY FOR THE THIRD LIVESTOCK PROJECT - SUPPLEMENTARY - May 26, 1971  INTEXNATIO1NJAL BANX FOR RECONSTRUCTION AND DEVELOPIENT REPORT AID RECOTIENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO REPUBLICA ORIENTAL DEL URUGUAY FOR THE THIRD LIVESTOCK PROJECT - SUPPLENENTARY 1. I submit the followring report and recommendation on a proposed loan in an amount in various currencies equivalent to US$4.0 million to the Repu'blica Oriental del Uruguay for a Third Livestock Project - Supplementary. PART I - HISTORICAL '2. The proposed loan would supplement the US$6.3 million loan I 698-UR) made in June 1970 to finance the foreign exchange component of 'Uruguay's national Iivestock development program in 1971. Rancher in- terest in participating in the program has greatly exceeded original expectations, and the Borrower has urgently requested the Bank to provide additional financing to help carry out an incre:ased program during the p.resent year. The proposed loan would help tb maintain the momentum of Uruguay's livestock development pending the appraisal of a more comprehensive Fourth Livestock Development Project, covering the 1972-73 period, for wlhich the Borrower has requested Bank assistance.. 3. A Bank mission visited Uruguay to appraise the Borrower's request for additional funds during February 1971 and negotiations were reld at the Bank during Aay. The Government was represented by Dr. Hector I.uisi, Uruguayan Ambassador to the United States, Mr. Benito Mledero, Vice- r-resident, Honorary Livestock Conmission, 11r. Carlos Debat, Central Bank, and IFr. Rodolfo Olivet, Bank of the Republic. 4. The proposed loan would be the ninth made to Uruguay and would increase the total amount of Bank loans to US$130.5 million (net of zancellations). The following is a summary statement of the Bankts loans to Uruguay as of April 30, 1971:  -2- Loan (US$ million) Number Year Borrower Purpose Amount Undisbursed 30-U UR 195