Announcement of World Bank Approves One Hundred Fifty-Five Million Dollars for Social Sector Reforms in Colombia on August 1, 2002

Colombia: World Bank Approves $155 Million for Social Sector Reforms Contacts: Alejandra Viveros (202) 473-4306 aviveros@worldbank.org Lee Morrison (202) 458-8741 Lmorrison1@worldbank.org For more information on the project, please visit: http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000094946_02022804022278 WASHINGTON, August 1, 2002 – The World Bank today approved a loan of $155 million to promote equity and efficiency in the social sectors of Colombia, particularly with respect to programs for the poor and vulnerable. The Social Sector Adjustment Loan (SECAL) will strengthen reforms in health and education, introduce a social risk management strategy to ensure that Colombia is better prepared to deal with future crises, and protect key social expenditures as a new Administration takes power in Colombia. “These programs are clearly aimed at the poor and vulnerable who have been excluded or underserved by health care and social welfare in the past,” said Olivier Lafourcade, the World Bank’s Country Director for Colombia, Mexico and Venezuela. “Clearly, children and families living in poverty are set to benefit most.” In addition to strengthening Colombia’s social safety net, the loan will support expanded immunization campaigns, increased health insurance coverage for the poor, and improve transparency and citizens’ oversight of the government’s principal social sector programs. “While Colombia recovers from the economic downturn, it is crucial that people continue to benefit from the security of social safety net programs,” said Vicente Paqueo, World Bank task manager for the project. “Colombia must sustain its momentum on the recent advances in social reforms developed over the past few years, protect social expenditures and strengthen the assistance programs.” This single-currency, fixed-spread loan has a term of 15.5 years, including five years of grace. It will be dispersed in a single tranche before the end of the current Administration on August 7, 2002.