Announcement of Ecuador to Provide Housing for the Poor with World Bank Support on May 6, 1982

· FOR IMMEDIA TF RELEASE 1 '•World Bank 1818 HStreet, N.W., Washington, D.C. 20433, U.S.A.•Telephone: (202) 477-1234 BANK NEWS RELEASE''NO. 82/83 Contact: Ciro Gamarra " May 6, 1982 (202) 477-8034 u ECUADOR TO PROVIDE HOUSING FOR THE POOR WITH WORLD BANK SUPPORT New housing and community facilities will be provided in Quito, the capital of Ecuador, and in nine other cities with the support of a $35.7 million loan, the World Bank announced today. Some 81,000:poor people are expected to have their living conditions improved as a result of the World Bank's second operation in Ecuador to provide housing for the urban poor. The World Bank's first urban development project, approved in December 1979 for $31 million, is now being carried out. The project aims at initiating programs of employment and residential development for the low-income population of Guayaquil. The second project, which will be implemented !n Quito, Amr.;]to, Esmeraldas,Quininde, Riobamba, Santo Domingo de los Colorados, Babahoyo, El Empalme, Machala, and Quevedo includes the provision of about 8,200 serviced lots and basic housing units, as well . ' • as re 1ated community fac i 1it i es (such ars community centers, schoo 1s, and hea 1th centers) for the poor. About 7,000 loans will be made to enable low-income families to repair or improve their homes. Legal land tenure and basic municipal services such as water supply, sewerage, and electricity will be provided to about 2,400 families in existing low-income areas. Consultant services and training will be made available to the government ag_encies responsible for carrying out the project. The physical aspects of the project will be taken care of by Junta Nacional de la Vivienda (JNV), the National Housing Board, while the financial aspects wi 11 be handled by Banco Ecuatoriano de la Vivienda (BEV), the Ecuadorian Housing Bank. Funds will be provided for an analysis of the Ecuadorian bank's needs for computerization of its operations and for the purchase of a_ computer to improve its inf'ormation system. The World Bank loan is for 17 years, including four years of grace, with in~erest at 11.6% per annum; and an annual conmitment charge of 0.75% on undisbursed balances. It includes a front-end fee of 1.5% on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.