Announcement of World Bank Lends Thirty Million Dollars to Improve Sanitary Conditions in Bogota on May 17, 1979

' . FOR IMMEDIATE RELEA'SE . •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-12 14 BANK NEWS RELEASE NO. 79/85 May 17, 1979 WORLD BANK LENDS $30 MILLION TO IMPROVE SANITARY CONDITIONS IN BOGOTA The World Bank announced today the approval of a $30 mill ion loan to help finance a water supply, sewerage, and drainage project in Colombia. The project is aimed at improving the sanitary conditions of B0gota 1 s res- idents, in particular the urban poor. The total cost of the project is estimated at $62.7 million. The proj- ect includes about 80 kilometers (km) of water supply distribution networks, 27 km of distribution mains, sewerage networks in 48 low-income neighborhoods, storm water drainage in 18 low-income neighborhoods, and about 10 km of drain- age canals. In addition, the project will support studies to determine meth- • ods of disposing Bogota's sewage, and the Bogota River~ reduetng flooding and pollution in About 1.1 million people are expected to bensfit directly from the water supply connections, 1 million from the sewerage and 400,000 from the storm water drainage facilities. By reducing flooding in some areas, the project v:ill make more land available for housing. Approximately 43% of the estimated beneficiaries of the project are expected to be among the poorest 40% of the population. The $30 million loan is to Empresa de Acueducto y Alcantarillado de Bo- gota (EAAB), the autonomous public enterprise responsible for the water supply, sewerage, and drainage facilities in Bogota. It has the guarantee of the Re- public of Colombia, and carries a term of 17 years, including 4 years of grace, with interest at 7.9% per year. This is the third World Ba~k loan for the Bogota water supply sector since 1968. Previously, the Bank has ~pproved two loans for a total of $102 million to support projects aimed at increasing water production in the Colombian capi- tal. • NOTE: Money figures are expressed in U.S. dollar equivalents • FORM NO. 1121 (5-76) T EC HN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Third Bogota Water Supply, Sewerage and Drainage Colombia $62.65 million • BANK FINANCING: $30 million for a term of 17 years, including 4 years of grace, with interest at 7.9% per year. OTHER FINANCING: Empresa de Acueducto y Alcantarillado de Bogota, $32.65 million IMPLEMENTING ORGANIZATION: Empresa de Acueducto y Alcantarillado de Bogot~ (EAAB) Calle 22C, No. 40-99 · Bogota, D. C., Colombia PROJECT DESCRIPTION: The project consists of: a) Water Supply: i) about 27 km of primary distribution mains to supply new areas of urban development; and ii) about 80 km of distribution networks to serve 24 low- income neighborhoods near the city perimeter. b) Sewerage: i) about 17 km of in- terceptors to collect sewage; and ii) sewerage networks in 48 low-income neighbor- • hoods, plus combined networks in another seven neighborhoods. c) Storm Water Drain~ age: J) about 10 km of drainage canals on three waterways; ii) three regulating reservoirs to hold storm water; and iii) storm water drainage networks in 18 low- income areas. d) Equipment: i) procurement and installation ·of 215,000 water me- ters, equipment for leak detection, construction and maintenance equipment and ve- hicles. e) Construction of a pilot sewag~ treatment plan. f) Engineering services; and g) Feasibility studies. PROCUREMENT: All contracts will be awarded under international com- petitive bidding (ICB) in accordance with Bank guide- lines, except for civil works contracts under $300,000 and materials and equipment contracts under $100,000. These smaller contracts will be awarded under local com- petitive bidding procedures satisfactory to the Bank and will not exceed in total $2 mil lion. Suppliers of goods manufactured in Colombia will receive a margin of preference of 15% of the C.I.F. price or the import duties, whichever is lower. CONSULTANTS: A total of 1,372 man-months of consultancy services for the project design and supervision and for the feasibility studies will be utilized. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 37% 1982 - 0 - •