Announcement of Peru to Improve Electricity Services on July 5, 1985

r FOR IMMEDIA 1 E RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234. BANK NEWS RELEASE NO. 86/6 Contact: Ciro Gamarra July 5, 1985 (202) 477-5320 PERU TO IMPROVE ELECTRICITY SERVICES Peru will improve its electricity services through a power engineering project which includes a series of studies designed to make service more responsive to local needs. The World Bank is providing $13.5 million to help finance the $24.8 million project. The project supports the process of regionalization by which nine public utilities have been established to provide all local electricity services. The studies will examine those areas where the nine regional authorities are facing their most pressing problems. These include distribution losses, high frequency of power failures, and inadequate procedures for bill collection. Other studies will seek to improve the administrative systems and commercial operations, including customer service, of the regional utilities. Still others will develop indicators and targets to help the government monitor the performance of the utilities. Consultants will review the current tariff structure and make recommendations for necessary adjustments. Equipment will be acquired to improve the efficiency of billing and office administration. Instruments and general laboratory equipment for system operation will also be purchased. The World Bank loan is for 17 years, including four years of grace, with a variable interest rate, currently 8.82 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.