Announcement of Colombia Export Development Project on May 27, 1993

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. 93/97 Contact: Ciro Gamarra Tel: (202) 473-8721 COLOMBIA: EXPORT DEVELOPMENT PROJECT The following is additional information about a project announced in the latest issue of World Bank News. DATE: May 27, 1993 WORLD BANK GROUP SUPPORT: World Bank loan: $50 million. The World Bank loan is for 17 years, including five years of grace, with a variable interest rate, currently 7.43 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. TOTAL COST: $86.6 million OTHER PROPOSED FINANCING: Private enterprises, $36.6 million IMPLEMENTING AGENCY: Banco de Comercio Exterior (BANCOLDEX) ESTIMATED COMPLETION DATE: 2000 PROJECT DESCRIPTION: The objective of the Export Development Project is to acceler- ate the export supply response under the Colombia's Export Management Program. The project will finance support to the following areas: (a) Trade Policy and Administra- tion including (i) advisory services to develop a transparent, automatic system to ensure that indirect tax reimbursements are commensurate with indirect taxes incurred by exporters; (ii) training, software, and office support to implement the Govern- ment's anti-dumping system; and (iii) information systems development and computer- ization, procedural simplification, staff-training, and equipment upgrading to support customs reform; (b) Export Promotions Services including (i) advisory and information services to potential exporters under and Export Development Matching Grant Program, product market research, product adaptation, and market promotion activities aimed to accelerate export development and build linkages with interna- tional markets; (ii) training and services under twinning arrangements with overseas promotions organizations to help restructure the Colombian Government export agency, the Export Promotion Trust; and (iii) training and promotion programs to facilitate trading company development; (c) Export Finance Services including (i) adjust the capital structure of BANCOLDEX to help ensure a market based return on equity and substantial private sector participation in its equity capital; (ii) training and enterprise-specific advisory services to help smaller enterprises to structure sound export financing arrangements and to support implementation of a public/private preshipment export credit guarantee joint venture; (iii) training and advisory services to support startup of a public/private postshipments export credit insurance joint venture; and (iv) advisory support for an export finance training program; and (d) Capital Markets Development including advisory services, training and associated software to make adjustments in the market regulatory framework, information and supervisory services. The project goods and services are expected to include office and computer and software systems for the antidumping system, and equipment for the customs inspection of goods.