Announcement of Bank and IDA Providing Eight Million Fifty Thousand US Dollars for a Sites and Services Project in El Salvador on October 31, 1974

1 8' '3 i,.I - T r, :. r T N \\' WASHINGTON D C.20433 TELEPHONE EXECUTIVE 3-6360 81_.1.bj ect: Bank and. IDA providing $8. 5 million for a Bank Press Release No. 74/83 sites and services project in El Salvador IDA Press Release No. 74/62 The World Bank and its affiliate, the International Development Association (IDA) are providing $8.5 million for a sites and services project in El Salvador. The $15.5 million project consists of infrastructure for 7,000 self-help housing lots with individual sanitary units. About 50% of the lots will also have a basic dwelling. The project includes the provision of related community facil- ities like schools, health and community centers; a construction materials fund to facilitate self-help extension of basic dwellings; a small pilot loan fund for small • industries; and technical assistance and training • The project is designed to demonstrate that a site and services program with parti aJ.ly-bui lt uni ts is a practical, more effective alternative to conventional fully-built units which in El Salvador have been beyond the means of nearly 60% of the households. The project, when completed i.n 1978, will bring major benefits. It will help to inprove living conditions and community services for the 7,000 households; to increase output in the construction industries and employment through mutual-help and self-help construction techniques; and to demonstrate an approach to the housing problems which should enable the Government to keep pace with the low- income housing needs throughout the country. The project will be executed by the Fundaci6n Salvadorefia de Desarrollo y Vi vienda Minima ( FSVH) • The Bank loan of $2. 5 million will be for 30 years , in- cluding 6 years of grace. It will carry interest at the rate of 8% per annum. The IDA credit of $6 million will be for 50 years, including 10 years of grace. It is interest free except for 3/l.~ of 1% service charge tc cover IDA' s administrative expenses. Note: Money figures are expressed in US dollar equivalents . • 0  T E C H N I C A L D A T A PROJECT: COUNTRY: Sites and Services El Salvador • TO'.l'AL COST : $15.5 mill.ion BAl'TK FINANCING: $2.5 million, 30 years, including 6 years of grace; interest at 8% per annum IDA FINANCING: $6 million, 50 years, including 10 years of grace. Interest free except for a service charge of 3/4 of 1% to meet IDA's administrative costs. OTHER FINANCING: FSVM, and the Government IMPLE:MENTING ORG.C\.NIZATION: F·mdaci6n Salvadorefia de Desarrollo y Vi vienda Minima, Apartado Postal 421, San Salvador, El Salva- dor PROJECT DESCRIPTION: Project consists of infrastructure for 7,000 self- help housing lots with individual sanitary units for all lots and a basic dwelling for one-half of the lots; related community facilities(e.g., schools, health centers, corn.muni ty centers); a construction materials fund. to facilitate • self-help extension of houses; a small industries loan fund; tech- nical assistance and training. PROCUREMENT: Contracts for civil works estimated to cost $50,000 or less but not in the aggregate exceeding $450,000, and contracts for construction materials estimated to cost $20,000 or less but not in the aggregate exceeding $200,000 will be procured in accordance with FSV1,,1's regular procurement procedures. Contracts for all other civil works and construction materials will be awarded under international com- petitive bidding. El Salvador has a competitive local construc- tion industry and foreign contractors are unlikely to participate because of the small size of the contracts involved. In accord- ance with the Central American Agreement, suppliers from Central American Corn.mom Market (CACM) countries will receive a margin of preference of 15% of the c.i~fo base price or 50% of the tariff payable by non CACM manufacturers , which ever is lower. The foreign exchange cost of the project is estimated at $3. 8 million. ESTIMATED COMPLETION DATE: 1978 0 •