Announcement of the World Bank~^!!^s 1981 Annual Report Indicating Approval of Four Development Loans to Peru Totaling One Hundred Forty-Eight Million in Fiscal Year 1981 : Announcement of the World Bank's 1981 Annual Report Indicating Approval of Four Development Loans to Peru Totaling One Hundred Forty-Eight Million in Fiscal Year 1981

. . ,.HOU) FOR 'REL.EASE t 'f • .., . .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.•Telephone: (202) 477-1234 BANK NEWS RELEASE NO. AR 81/12 EMBARGO: For publication on Monday September 21, 1981 WORLD BANK MADE FOUR DEVELOPMENT LOANS TO PERU TOTALLING $148 MILLION IN FY1981 Consultative Group Covened to Assist Public Investment Program The World Bank approved four loans to Per6, totalling $148 million, to assist development projects during Fiscal Year 1981. Peru was the fourth largest recipient of Bank lending in Latin America during this period, according to the World Bank's 1981 Annual Report published today. The World Bank 1s the single main source of multilateral assistance to Pero. Since January 1952, the World Bank has provided a total of 43 develop- • ment loans, amountrrr,g to $956 million. The $148 million lending commitment in 1981 is the second highest for Peru, exceed only in Fi$ca1 Year 1976, when it received a record level of $174.1 million. The loans approved in 1981 included $5 million for a technical assistance project for steel-making expansion, $58 million for aviation development, $60 million for industrial credit, and $25 million for a power engineering project. The World Bank's Annual Report also mentions that after a hiatus of six years, the Bank convened a Consultative Group meeting in Paris, France, in May 1981 to help mobilize external financing for the 1981-85 public investment program of Peru. In the past, World Bank lending concentrated on infrastructure in the transportation and power sectors. More recently, the Bank's emphasis has shifted to more directly productive fields--mining, agriculture, and industry-- to help Peru to stren~then its balance of payments. Lending for social projects has also grown. About 31% of the Bank's lending to Peru has been for transportation (main- ly highways and ports), 19% for agriculture and rural development, 18% for the energy sector (mainly efectric power), 15% for mining and industry, about 5% for education and urban development, and 12% for the $115 million program loan of May 1979. I I • •• !• NOTE: Money figures are expressed in U.S. dollar equivalents.  - 2 - The first loan made in fiscal 1981 by the World Bank to Peru was extended • to the Empresa Siderurgica del Peru (SIDERPERU) to help finance a technical assistance project aimed at supporting the expansion of the Chimbote steel mi 11. In March 1981, a loan of $58 million was made to Peru's Airports and Civil Aviation Authority (CORPAC) to help improve the efficiency and security of commercial aviation Jn the country. The project has an estimated total cost of $127.6 million and includes the improvement of three regional airports at Pucallpa, Tarapoto, and Huanuco; the construction of a new air port for Tingo Maria and a nationwide airport tquipment program. Final engineering for a new airport at Cuzco is also included. A ioan of $60 mill:on was made last April to support to Second Indus- trial ?roject assisted by the Bank in Peru. The loan to the Corporacio'n Financiera de Desarrollo (COFIDE) will provide financing for an estimated 100 subprojects by public and private enterprises, mostly in industry but also tn mining and tourism. Finally, last June the World Bank approved a $25 million loan to the national power company, Empresa de Electricidad del Peru, S.A. (ELECTROPERU) to help finance a power engineering project that will strengthen the national electric power planning capability. The power engineering project includes studies for 12 hydroelectric projects • with a total generating ~apacity of about 1,100 megawat~ and a transmission line and thermal pl~nt. It also includes a review of the feasibility study of the Olmos power and irrigation project. ·- 0 - •  WORLD BANK LENDING TO PERU (To June 30, 1981) SECTOR Loans Original A.mount* Agriculture and Rural Development 12 183~0 Education 1 24.0 Energy 8 168.8 Industry 6 150.0 Non-Project 1 115.0 Transportation 14 293.5 Urban Development 1 21.6 TOTA~ 43 · $955.9 *Round figures, in millions of U.S. dollars.