Announcement of World Bank Approves Loan to Colombia for Watershed Protection on December 17, 1981

~ .J . . FOR IMMED·IATF RELEASE •World Bank 1 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: {202) 477-1234 BANK NEWS RELEASE NO. 82/27 Contact: Ciro Gamarra December 17, 1981 (202) 844-8034 WORLD BANK APPROVES LOAN TO COLOMBIA FOR WATERSHED PROTECTION Ecological measures to protect Colombia's most important river, the Magdalena, will be assisted with a $9 million loan, the World Bank announced today. The pr.oject will be the first in Colompia concerned exclusively with water resource management and environment protection. Three small watershed areas have been selected to test means of reversing ecological deterioration in the upper part of the Magdalena River and its surrounding areas, in the departments of Huila and Tolima. This river's upper basin includes 23 major tributaries formed in the high central and the lower eastern mountain ranges. The valley is Colombia's principal rice production area, and the location of major hydroelectric resources. The problem derives in large part from intensive cultivation of previously forested land in the mountainous regions. In recent years, the denuding of forested hillsides has accelerated as colonizers have opened new and more fragile land higher up along the mountain sides. Soil erosion has led to the siltation of reservoirs, more frequent flooding, and reduced dry-season water flows for water supply systems. Over the past year, nation- wide electricity rationing has contributed to public and governnsnt interest in watershed conservation and management. There is little experience with mobilizing the various residents and water users in watersheds and managing each area to maximize the long- term economic potential of the water and soils. To approach the problem in a systematic way, the lnstituto Nacional de Recursos Naturales Renovables y del Media Ambiente (INDERENA), with the endorsement of the governm~nt, will carry out a small-scale pilot program to develop and test technological ap- proaches and organizational arrangements for carrying out a massive program in the future. The three watershed areas tp be studied cover two rivers, the Rio Combeima and Rio Yaguara, originating in the Central Cordillera, and the Rio Las Ceibas, which rises in the Eastern Cordillera. These watersheds were chosen because of their economic importance and because they .together exhibit NOTE: Money figures are expressed in U.S. dollar equivalents. • .. I ~·· - 2 - :. a range of cl tmate, soils, and agricultural activities. Pilot investments will aim at introducing soil-conserving cropping patterns, improvement of 1 ivestock management, reforestation of vulnerable areas, and construction of minor erosion-control works. Complementary research and studies will focus on measuring the economic benefits, improving technologies, and preparing a second-stage effort. • The $9 million loan to INDERENA, with the Government of Colombia as guarantor, is repayable in 17 years, including four years of grace, at 11.6% interest a year. - 0 - r, fi • ' I, • ifOWM·NO. 1121 ,,. cs... 1e, T ECH N I C A L DAT A • PROJECT": Upper Magdalena Pilot Watershed Management COUNTRY: Colombia TOTAL COST: $27. 3 mi 11 ion BANK FINANCING: $9 million, with repaymerit in 17 years, including four years of grace, at 11.6% interest per year. OTHER FINANCING: Government of Colombia, $9.S'million Participating Banks, $7 million Beneficiaries, $1.8 million IMPLEMENTING ORGANIZATION: lnstituto Nacional de Recursos Naturales Renovables y del Medio Ambiente Carrera 14, No. 25, A-66 Bogota, D.E., Colombia PROJECT DESCRIPTION: It consists of pilot investments in three subwatersheds of the Magdalena River designed to introduce soil conserving cropping patterns, improvement of livestock management, reforestation of marginal or extremely vulnerable areas, and construction of minor structures to reduce erosion. The project also includes research and evaluation comp6nents to provide the basis for pre- paring a follow-up project covering the entire Upper Magdalena Watershed. PROCUREMENT: Contracts for equipment and vehicles estimated to cost about $2.9 million equivalent will be procured under international competitive bidding in accordance with Bank guidelines. Contracts for small items such as scientific instruments, office and fieid equipment, each not exceeding $25,000 equiva- lent and in aggregate no greater than $200,000 equivalent, will be eligible for procure- ment by quotation from at least three suppliers or manufacturers. Civil works contracts will be small, unattractive to international firms and, therefore, procured through local competitive bidding procedures. Contracts for reforestation will be awarded on the basis of at least two quotations, except where only one potential contractor is avciilabl~. _ In the latter ~vent, the contracts will be on terms and conditions satisfactory to-the Bank. CONSULTANTS: Consulting services are estimated at 90 man-months local and 50 man-months foreign, for assistance with the project studies and preparation of Phase II. ECONOMIC RATE OF RETURN: n.a. ESTIMATED COMPLETION DATE: 1986 - 0 -