Announcement of World Bank Supports Second Urban Development Project in Colombia on May 3, 1979

FOR IMMEDIATE RELEASE · .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/81 May 3, 1979 WORLD BANK SUPPORTS SECOND URBAN DEVELOPMENT PROJECT IN COLOMBIA The World Bank has approved a loan of $13.5 million to help finance a second urban development project in Colombia. The project is expected to improve the living conditions of the poorest residents of the city of Cartagena on the Caribbean coast. The project will have an estimated total cost of $35.3 million. It consists of physical upgrading and provision of water supply, sewerage, electricity services, and social programs in the southeast zone of the city of Cartagena and in the nearby village of Pasacaballos. With about 400,000 people, Cartagena is the capital, port, and larg- est city of Bolivar Department. Some 80,000 people live in the southeast zone of Cartagena, on about 355 hectares of mud flats along the shores • of the Tesca lagoon, of whom only 25% have access to piped water and less than 10% to sewerage. Pasacaballos is a depressed, semi-rural community at the southwest end of the Bay of Cartager.a. Over 95,000 individuals are expected to benefit from the project through improved infrastructure, housing, and community facilities. About 84% of the households in the southeast zone of Cartagena and virtually all in Pasacaballos earn incomes below the urban poverty level of $855 per year in 1976 prices. The project will support social programs, including construction of community centers, to be carried out during 1979-83= A program of cadastral improvements; a study of municipal fiscal planning; and engineering studies of water supply, flood control, and sanitation in the project area and environs are also included. Land filling in the southeast zone is being partially financed by a $2 million grant from the Inter-American Develop- ment Bank (IDB). The $13.5 million loan to the Republic of Colombia has a term of 17 years, inc]uding 4 years of grace, with interest at 7.9% per annum. A $24.8 million World Bank loan approved in April 1978 is helping finance the Bank's first urban development project in 23 cities throughout Colom- bia. • NOTE: Money figures are expressed in U.S. dollar equivalents • FORM NO. 1121 (5-76) T E C HN I CA L D A T A • PROJECT: Cartagena Urban Development COUNTRY: Colombia TOTAL COST: $35.3 mi 11 ion BANK FINANCING: $13.5 million for a term of 17 years, including 4 years of grace, with interest at 7.9% per annum. OTHER FINANCING: Colombian Government and Agencies, $19.8 million Inter-American Development Bank (IDB), $2 million IMP LEMEN T I NG ORGAN I ZA T I ON : I n s t i tut o de Cred i to Te r r i to r i a 1 ( I CT) Plaza Bolivar Cartagena, Colombia PROJECT DESCRIPTION: The project consists of physical upgrading and prov1s1on of services and will support social programs to be carried out during 1979-83 in the southeast Zone of Cartagena and in Pasacaballos. It comprises: a) land fi 11 ing in the S.E. Zone project area to raise the level of streets and house lots; b) canalization of main drains to convey external storm water and construction of street drainage works in the S.E. Zone; c) road improvements and minor drainage works • . in Pasacaballos; d) installation of utility infrastructure including primary water and electricity networks in the S.E. Zone and in Pasacaballos and primary sewerage networks in the most consolidated areas of the S.E. Zone; e) loans and technical advice; f) construction of Community Development Centers (CDVs), equipping of existing and new facilities, and a staff training program; g) project management; ·and h) a program of cadastral improvements; a study of municipal fiscal planning;and engineering studies of water supply, flood control ,and sanitation in the project area and environs. PROCUREMENT: Civil works contracts not exceeding $750,000 will be awarded through local compet.itive bidding using procurement procedures acceptable to the Bank. Contracts for civil works estimated to cost $750,000 or more will be awarded through international competitive bidding (ICB) in accordance with Bank guidelines. Construction of .the CDVs (average cost $500,000) will be carried out by ICT directly or hiring and supervising small private contractors. Hiring will be done on the basis of local competitive bidding or local shopping in which at least three contractors are invited to bid for each contract. Materials for the ICT loans will be procured by local competitive bidding or local shopping. Contracts for the supply of equipment and materials estimated to cost $150,000 or more will be awarded through ICB in accordance with Bank guidelines. Contracts under $150,000 but not exceeding, in the aggregate, $2 million will be awarded on the basis of local competitive bidding procedures acceptable to the Bank. For bid evaluation purposes under ICB, a margin of 15% of the C.I.F. price or the value of appl.icable custom duties, whichever is ]ower, will be allowed for materials and equipment manufactured in Colombia. CONSULlfANTS: ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: About 110 man-months of consultant services are estimated to be required. 16% 1983 - 0 - •