Announcement of World Bank Approves One Hundred Million Dollars for Urban Development in Bogota in Colombia on March 13, 2003

Colombia: World Bank Approves $100 Million For Urban Development In Bogota Contacts: Gabriela Aguilar (5255) 5480-4252 gaguilar2@worldbank.org Alejandra Viveros (202) 473-4306 aviveros@worldbank.org To find more information on this project, please visit: http://www4.worldbank.org/sprojects/Project.asp?pid=P074726 WASHINGTON, March 13, 2003 — The World Bank today approved a $100 million loan to help improve urban infrastructure and services in the Colombian capital of Bogotá. The loan for the Bogotá Urban Services Project is aimed at improving urban livability by increasing access, coverage, quality, reliability and inter-agency coordination in the provision of transport, water, sanitation and related basic services, particularly for residents in low-income areas. Among the beneficiaries are about 600,000 low-income residents who live in 14 of the city’s poorest zones (Unidades de Planificación Zonal). “Modern public services are crucial to the quality of life among the approximately 7 million residents of Bogotá,” said Isabel Guerrero, Director of the World Bank’s program in Colombia and Mexico. “Better infrastructure means that more of Bogotá’s poor will gain easier access to jobs, education, and social services.” Bogotá’s city government has made great progress in improving living conditions over the past decade. Its solid record of innovative policy- making and sound financial management have provided a strong basis for an integrated approach to improving the quality of life in this important urban area. The Improved Mobility, Urban Upgrading and Institutional Strengthening components of the Bogotá Urban Services Project are consistent with the District’s short and long-term development plans (Plan de Desarrollo and Plan de Ordenamiento Territorial). “About half a million people displaced by Colombia’s internal armed conflict are now living in the poorest neighborhoods in the Bogotá area, mostly in rapidly-growing informal settlements which lack basic facilities such as paved roads, reliable water supply and sewerage,” said Thakoor Persaud, World Bank task manager of the project. “The physical and social upgrading of the project areas will allow displaced persons as well as other poor residents to improve their living conditions and increase intra-community as well as intra-city mobility and access to services, aiding in improvement of their livelihood.” Among the subprojects to be supported by the Bank’s loan is an expansion of the Transmilenio bus system, which uses dedicated bus lanes, as well as construction of bicycle paths and sidewalks, street paving, upgrading and repair of public parks and community facilities. The Institutional Strengthening component is aimed at improving the performance of the institutions in delivering urban services through activities which will help to ensure the social, environmental and financial sustainability of the works undertaken by the project. “The fact that LAC is the most urbanized region in the Bank makes this a particularly important project,” explained Danny Leipziger, Director of the Bank’s Finance, Private Sector and Infrastructure Department. “Colombia has been a very good partner in our efforts to develop multi-sector projects such as these which are becoming an indispensable tool in our efforts to address urban poverty more effectively.” This fixed-spread loan, repayable in 17 years, includes a grace period of five years and will be disbursed between 2003 and 2007. The Bogotá Urban Services Project is being undertaken as part of the World Bank Group’s Country Assistance Strategy (CAS) for Colombia. That strategy, approved in January 2003, supports Colombia’s efforts to achieve rapid and sustainable growth and to give all Colombians a share in that growth and to build efficient and transparent governance. The CAS involves project and investment loans of up to US$3.3 billion through June 2006. For more information on the World Bank’s work in the Latin America and Caribbean region, please visit: http://www.worldbank.org/lac. Click here to read the current Country Assistance Strategy for Colombia. -###-