Announcement of World Bank Lends Twenty-Four Million Eight Hundred Thousand Dollars for Urban Development in Colombia on May 1, 1978

FOR IMMEDIATE RELEASE •World3ank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/80 MAY 1 , 1978 WORLD BANK'LENDS $24.8"MILLION FOR URBAN DEVELOPMENT IN COLOMBIA A $24.8 million World Bank loan will help finance the Bank's first urban development project in Colombia. The project will also be the country's first integrated effort in attacking directly the problem of urban poverty and will benefit about 550,000 people in 23 cities throughout the country. The project wi 11 have an estimated total cost of $62 million. It wi 11 include construction of 27 community development centers, extension of primary education to about 95% of the eligible population in the areas served, prov1s1on of health and nutrition services, and promotion of community enterprises and credit. Regularization of land tenure of some 31,000 households, home improve- ment credits for about 18,500 people, development of J,300 new sites and services and water supply and sewerage services for about 280,000 people are also included. • Some 26,000 people will benefit under the vocational training and promotion component, and about 3,800 new jobs will be created. Four fifths of the 550,000 beneficiaries have family incomes of less than one third the national average of $1,300 per annum. The project will be im- plemented in the cities of Armenia, Barrancabermeja, Bucaramanga, Cartage, C~cuta, Girardot, lbagut, and Riohacha. It will also be carried out in Manizales, Monter1a, Neiva, Pasto, Pereira, Quibdo, Sabanalarga, and San Andr~s, as well as in Santa Marta, Sincelejo, Tulu~, Tumaco, Turbo, Valledupar, and Vi 11 av i cen ci o. The $24.8 million loan to the Republic of Colombia will have a term of 17 years, including 4 vears of grace; with interest at 7.5% per annum. NOTE: Money figures are expressed in U.S. doilar equivalents • • FORM NO. 1121 (5-76) T E C HN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Urban Development Colombia $62 mi 11 ion • BANK F I NANC I NG : $24.8 million, for a term of 17 years, including 4 years of grace, with interest at 7.5% per annum. OTHER FINANCING: Government of Colombia, $19.5 million Banco Popular, $2 million lnstituto de Crldito Territorial,. $12.6 million lnstituto Colombiano de Bienestar Familiar, $1. l million Servicio Nacional de Aprendizaje $2 million IMPLEMENTING ORGANIZATION: Secretarfa de lntegracion Popular (SIP) Presidencia de la Republica Palacio San Carlos Calle, 10 #5-51 Bogota, D.E. Colombia PROJECT DESCRIPTION: lt will include: (a) Construction of community develop- ment centers, primary schools, health centers, and child • and family welfare centers, as well as training of teachers, community health staff and child welfare social workers; (b) Promotion and organization of private and cooperative enterprises, training programs, and credit to small-scale industries; (c) Regularization of land tenure, home improvement loans, sites and services development, and basic infra- structure services such as water and sewerage; and (d) Project management and evaluation, especially to enable SIP adequately to monitor, evaluate and refine the program. PROCUREMENT: Contracts for goods estimated to cost the equivalent of $150,000 or more will be let under international competitive bidding in accordance with Bank guidelines. Other goods will be procured in accordance with Government's competitive bidding procedures. Civil works contracts will be let under local competitive bidding procedures. Civil works estimated to cost less than $15,000 equivalent may be procured on a negotiated basis or by force account, and, in the case of community development centers and classroom construction, they may be carried out by force account with the prior approval of the Bank even if their estimated cost exc~eds $15,000 equivalent. Suppliers of goods manufactured in Colombia and procured through international competitive bidding procedures will receive a margin of preference of 15% or the value of import duties, whichever is less. ECONOMIC RATE OF RETURN: 10% ESTIMATED COMPLETION DATE: 1981 - 0 - •