Peru - Highway Maintenance and Improvement Project

R E S T R I C T E D FILE R e p o r t N o. P-267 This report was prepared for use within the Bank. It may not be published nor may it be quoted as representing the Bank's views. The Bank accepts no responsibility for the accuracy or completeness of the contents of the report. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATIONS OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF PERU October 26, 1961  Report and Recommendations of the President to the Executive Directors on the Proposed Loan to the Republic of Peru 1. I submit the following report and recommendations on a proposed loan in various currencies equivalent to $10 million to the Republic of Peru, to help finance the foreign exchange cost of a program for highway maintenance and improvement. PART I - HISTORICAL 2. In 1955 the Bank made a loan of $5 million to finance the foreign exchange cost of a Highway Maintenance Program in Peru. This loan helped start maintenance operations on a mechanized basis on some of the more important roads. Under the provisions of a $5.5 million highway construction loan made by the Bank in 1960, the Government of Peru undertook to continue the maintenance program. In March 1961, the Government asked the Bank to assist in financing an expanded program of maintenance and improvement. A Bank mission visited Peru in June 1961 to appraise this project. 3. Formal negotiations began in Washington on September 25, 1961. Mr. Jorge Grieve, Minister of Development and Public Works, represented the Borrower in the initial stages of the negotiations and Mr. Fernando Zavala, Chief of the Maintenance Division of the Department of Highways of the Ministry of Development and Public Works, in the final stages. 4. The proposed Loan would increase the Bankts lending (including participations) to Peru, net of cancellations and refundings, from $82 million to $92 million. The Bank has made the following loans to Peru:  -2