Announcement of World Bank Approves Eighty Million Dollars to Support Health Sector Reform in Peru on December 16, 1999

World Bank Approves $80 Million To Support Health Sector Reform In Peru Contact: Christopher Neal (202)-473-7229 Lee Morrison (202) 458-8741 WASHINGTON, December 16, 1999--The World Bank's Executive Board today approved a loan worth US$80 million to finance reforms to Peru's health system that aim to reduce illness and premature death among poor people, as well as improve maternal and child health. Pierre Werbrouck, World Bank resident representative in Peru, said the loan will support the Peruvian government's effort to design and implement new policies seeking to guarantee access by Peru's poorest population groups to a wide range of health care services. "We hope this loan will contribute to reducing the economic and cultural barriers that deny poor people access to health services, and that it helps to improve the quality and efficiency of services by involving communities in health promotion activities," Werbrouck said. This first phase of the project will continue to 2004. Depending on progress achieved during this first phase, two further phases with loans totaling $100 million are envisioned to complete the health sector reform process by 2010. The loan aims to increase the demand for health services among expectant mothers and children under four years old, especially those living in rural areas where such services are minimal or unavailable at present. The program provides for reimbursement of health service charges to beneficiaries who qualify under a Maternal & Child Health Insurance (SMI) system. This insurance system for mothers includes medical checkups and treatment of illnesses detected before, during and after birth. The benefits for children are broad, including medical monitoring, comprehensive vaccination and micro-nutrient supplements, among others. The loan will also finance technical assistance needed to strengthen community health committees (CLAS), which are non-profit local organizations that manage public resources under contract to provide community-based health services. The $80 million single-currency loan has a five-year grace period, and matures in 17 years.