Announcement of Road Studies in Peru on November 24, 1964

.. l . .•., HOLD FOR RELEASE • .TFRNATiO~-,JAL NS"T'RU 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 For Release Subject: Road studies in Peru November 24, 1964 The World Bank has agreed to help finance feasibility studies for three road construction projects in Peru. The Bank has allocated $300,000 to meet foreign ex- change costs of the studies by consultants, while the Government of Peru will bear the local currency costs. The studies will cover the following projects: 1) the Carretera Marginal- Satipo-Via Central road project to connect two penetration roads leading from the Andes into the fertile and potentially rich areas of Ceja. de Montana on the eastern • slopes of the mountain; 2) the Sullana-Paita road section to provide a reliable link between Sechura Valley, Sullana and Paita po.rt; and 3) the 15-kilometer Pasa- mayo section of the· Pan-American Highway which rui1s along the Pacifi~ Ocean serving as the only connection between Lima, the capital city, and the North of Peru. Between 1955 and 1961, the World Bank made three loans totaling $20.5 million to import maintenance equipment and materials to resurface ·sections of Peru's most important high~ays, and to improve road transport between the Ama~on. are~ in east~rn Peru and Lima. In addition, the Bank joined the Peruvian Government in financing a etudy by consultants to provide a basis tor Government decisions with respect to investments in highway development. In their r.eport, submitted to th,e Government and the Bank in 1961, the consultants recommended a 10-yea.r program of improve- ments EI.Ild expansion of highway facilities at a total estimated cost of more than $200 million. The report bas been the Government's principal guide to establish • priorities in planning development of these urgently needed national highways.  I • - 2 - At present, feasibility and engineering studies in enough detail exist for only three road sections. In order to have a basis for drawing up a coordinated plan for the recommended further expansion of Peru's highway system, a program of additional studies was evolved as a result of discussions between the Peruvian Government, the U.S. Agency for International Development (AID), the Inter-American Development Bank (IDB) and the World Bank. The program will cost about $2.4 million and will cover 11 road sections totaling about 1,800 kilometers. Studies of two of these road sections are now going forward as part of a high- way maintenance and improvement project toward whii.".i'h the World Bank made a loan of $10 million in 1961. In September 1964, IDB announced a loan of $475,000 to finance the total costs of two other road sections. Negotiations are under way between the Government and AID for financing studies of ?our more road sections. The present • allocation by the World Bank will cover foreign exchange costs of studies of the remaining three sections. The studies a.re expected to take about one year • • ,,,