Announcement of Argentina Public Enterprise Reform Execution Loan (PEREL) on February 15, 1991

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEW RELEASE NO. 91/43 Contact: Richard Kollodge Tel: (202) 473-1792 ARGENTINA: PUBLIC ENTERPRISE REFORM EXECUTION LOAN (PEREL) Following are details of a project approved by the World Bank's Board: DATE: February 15, 1991 WORLD BANK GROUP SUPPORT: World Bank loan: $23.3 million. The loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $32.9 million OTHER FINANCING: Government of Argentina, $9.9 million IMPLEMENTING AGENCY: Ministerio de Economia ESTIMATED COMPLETION DATE: 1995 PROJECT DESCRIPTION: The objective of the "Public Enterprise Reform Execution Loan" is to strengthen the government's administrative and technical capability to execute its Public Enterprise Reform Program and encourage competition in the private sector. It will finance the cost of contracting services and equipment necessary to carry out the policy reforms contemplated under the Public Enterprise Reform Adjustment Loan (PERAL), as well as extend the program to additional sectors/enterprises. The project will include: (a) total or partial privatization of four major public enterprises in Argentina, namely Empresa Nacional de Telecomunicaciones, Ferrocarriles Argentinos, Yacimientos Petroliferos Fiscales, and Gas del Estado, as well as improvement of the financial viability and service quality in non-privatized business units; (b) preparation of further privatization programs; and (c) strengthening the institutional and regulatory framework for the sectors in which public enterprises operate.