Announcement of World Bank Supports Child Care and Nutrition Project in Colombia on May 24, 1990

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. 90/83 Contact: Ciro Gamarra (202) 473-8721 WORLD BANK SUPPORTS CHILD CARE AND NUTRITION PROJECT IN COLOMBIA WASHINGTON, May 24, 1990 -- More than 1 million poor preschool children in Colombia will benefit from a six-year project to expand community child-care and nutrition activities. The World Bank will support the effort with a loan of $24 million. The $40.2 million project forms is a key part of the government's poverty reduction program. It aims at strengthening a program of home-based child care, "the Hogar de Bienestar Infantil," designed to provide for the nutrition, health and early-childhood development needs of children aged two through six in low- income urban communities. Under the program, managed nationally by the Colombian Institute of Family Welfare (ICBF), "community mothers" chosen by parents, care for about 15 child- ren each in their homes. About $37.1 million will be used to provide training for about 75,000 commu- nity mothers and other participants and home upgrading for about 50,000 commu- nity mothers. The home-upgrading credits will average about $500 for every home, and will have to be repaid ip five years. The project provides $2.7 million for technical assistance and equipment to strengthen ICBF's planning and monitoring capabilities. About $400,000 will be used to finance studies to assess the potential for private production and marketing of an important food supplement for children, "Bienestarina," current- ly supplied and distributed by ICBF as well as to determine future management and financing arrangements for ICBF's center-based program of child care. The Government of Colombia will provide $16.2 million to cover the balance of project cost. The World Bank loan to the Republic of Colombia, which will be disbursed over six and a half years, is for 17 years, including five years of grace, with a variable interest rate, currently 7.75 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.