Uruguay - Livestock Improvement Project

LJ- w R E S T R I C T E D FILE COPY Report This report was prepared for use within the Bank. In making it available to others, the Bank assumes no responsibility to them for the accuracy or completeness of the information contained herein. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATIONS OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLICA ORIENTAL DEL URUGUAY FOR A LIVESTOCK IMPROVEMENT PROTECT December 17, 1959  REPORT AND RECONMNDATIONS OF TIE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLICA ORIENTAL DEL URUGUAY lo I submit the following report and recommendations on a proposed loan in an amount in various currencies equivalent to $7 million to the Republica Oriental del Uruguay to help finance a project for the irrprove- ment of livestock production in Uruguay. PART I -- HISTORICAL 20 In 1950, at the request of the Government, a joint IBRD-FAO mission made an agricultural survey of Uruguay. A special government commission was subsequently set up to prepare a program along lines recommended by the joint mission to improve and increase livestock production. An application for a loan to help finance this program was presented by the Government to the Bank at the end of 1952. 3. In 1953, -fter a Bank mission had visited Uruguay and discussed modifications of The program and methods of executing it, the Bank informed the Government that, subject to the satisfactory resolution of administrative and organizational problems, the Bank would be willing to assist in financing the program. Progress in completing prepara- tions was retarded by a number of factors including the change in administration following the 1954 elections. It was not until July 1957 that a law establishing the basis for the execution of the program was enacted by the Uruguayan Parliament0 4. In February 1958 a special commission was established to direct and supervise the operation of the Livestock Plan. The Government subsequently indicated its desire to move forward with the project but the imminence of elections delayed the opening of negotiations. Follow- ing the change in Government after the elections in November 1958, pre- liminary discussions began with the Ambassador of Uruguay to the United States. Formal negotiations were begun on September 25, 1959 with Mr. Juan Ferrando, Director of Public Credit of Uruguay, and Hr. Walter Lusiardo, Adviser to the Minister of Finance of Uruguay. 5. The proposed loan would be the Bank's fourth in Uruguay and would bring the total of Bank loans in Uruguay to about $71 million equivalent. There have been no caaicellations. Loans previously made are:  -2- Amount (Equivalent Year No. Borrower Purpose in millions of U.S.$) 1950 30 UR Administracion Electricity 33.0 General de las and tele- Usinas Electri- phones cas y los Tele- fonos del Estado (UTE) 1955 132 UR U.T.E. Power 5