Announcement of World Bank Assists Aviation Development in Peru on March 30, 1981

. . . FOR IMMEDIATE RELEASE .world Bank 1818 H Street, N.W., \-\'ashington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/65 March 30, 1981 WORLD BANK ASSISTS AVIATION DEVELOPMENT IN PERU The efficiency and security of commercial aviation in Per6 will be improved through a project supported by a World Bank loan of $58 mil lion. The aviation development project wi 11 also improve service to regional centers in the Amazon jungle and jungle highland regions of Per6, which currently have inadequate trans- port links with the rest of the country. The project has an estimated total cost of $127.6 million~ It includes the improvement of three regional airports at Pucallpa, Tarapoto, and Huanuco; and the construction of a new airport for Tingo Marfa. The project also consists of the installation of navigational aids and com- munications systems at 32 locations throughout Per6 and the provision of a flight inspection aircraft and other airport equipment. • Final engineering for a new airport at Cuzco and technical assistance to im- prove Peru's Airports and Civil Aviation Authority (CORPAC) operations are also provided under the project. The four airports to be improved under this project serve rapidly growing regional centers, in areas with a population estimated at about 900,000. The project will permit the four cities to be served more efficiently by air transport, and wi 11 also improve the safety of aircraft operations. The lack of an adequate infrastructure and facilities has restrained the growth of Peru's commercial aviation and reduced its efficiency. Airports are frequently shut down because of poor operating conditions and many cannot handle the most economical aircraft for existing traffic volumes. The $58 million World Bank loan to CORPAC has the guarantee of the Republic of Peru. It is for a term of 17 years, including 4 years of grace, with interest at 9.6% per annum. NOTE: Money figures are expressed in UwS. dollar equivalents . • FORM NO. 1121 (5-76) T EC HN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Aviation Development Peru $127.6 million • BANK FINANCING: $58 mil lion for a term of 17 years, including 4 years of grace, at 9.6% interest per annum OTHER FINANCING: Corporaci6n Peruana qe Aeropuertos y Aviaci6n Comercial (CORPAC), $49.4 million; Government of Peru, $1 .2 ~il- l ion; Co-financing, $19 mi 11 ion IMPLEMENTING ORGANIZATION: Corporaci6n Peruana de Aeropuertos y Aviacio'n Comercial Aeropuerto Jorge Chavez Lima, Peru Cable: CORPAC LIMA PERU PROJECT DESCRIPTION: It consists of: (a) upgrading, including equipment replace- ment for airports at Pucallpa, Tarapoto, and Huanuco, and the construction and equipping of a new airport for Tinge Marfa; (b) installation of navigational aids and communications systems at 32 other locations throughout Per6 and the provision of a flight inspection aircraft and other airport equipment; and (c) • final engineering for a new airport at Cuzco and f~r the four airports being improved and rec0nstructed under the project as wel 1 as technical assistance to improve CORPAC's operations. PROCUREMENT: All contracts for civil works and equipment to be financed by the World Bank will be procured under international com- petitive bid~ing (ICB) procedures in accordance wfth Bank guidelines. Qualified sup- pliers of equipment produced in Per~ and those from th• Cartagena Agreement member countries participating in ICB wi 11 be accorded a margin of preference of 15% or the prevailing custom duty, whichever is lower. CONSULTANTS: About 642 man-months of con~ulting services wil 1 be required for the preparation of the final engineering studi~s, for supervision of the design and construction of the four regional airports, and for the cost accounting system for CORPAC. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 20% 1985 - 0 - •