Announcement of Peru Privatization Adjustment Loan on April 22, 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. 93/85 Contact: Antonio Pimenta-Neves Tel: (202) 473-8722 PERU: PRIVATIZATION ADJUSTMENT LOAN The following is additional information about a project announced in the latest issue of World Bank. DATE: April 22, 1993 WORLD BANK GROUP SUPPORT: World Bank loan: $250 million. The World Bank loan is for 20 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: $250 million IMPLEMENTING AGENCY: Commission for Promotion of Private Investment (COPRI) ESTIMATED COMPLETION DATE: 2000 PROJECT DESCRIPTION: The objectives of the Privatization Adjustment Loan are to support the privatization program and related sectoral policy, legal, and regulatory reforms being implemented by the Government of Peru. The program is designed to promote competition and private investment, and improve economic efficiency and fiscal performance. The loan will finance 100 percent of the cost, insurance and freight of general imports not contained in the negative list. Ineligible imports include: goods financed by other Bank loans or loans from official multilateral or bilateral sources; alcohol, tobacco, luxury, and environmentally hazardous goods; and goods intended for military use. Retroac- tive financing in the amount of $50 million will be available to finance eligible expenditures incurred after September 30, 1992.