Announcement of Bolivia Receives Eleven Million Five Hundred Thousand Dollars World Bank Loan for Water Supply and Sewerage Project on September 16, 1976

eWorldBank 1818 H Street, N.W. 1 Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/17 SEPTEMBER 16, 1976 BOLIVIA RECEIVES $11.5 MILLION WORLD BANK LOAN FOR WATER SUPPLY AND SEWERAGE PROJECT The World Bank has approved an $11.5 million loan to Bolivia to help finance a water supply and sewerage project. Under the project, urgently needed water supply works will be constructed in Potosi, Bolivia's main mining city, and in Sucre, the country's capital, as well as in 70 rural communities. Presently the water supply services of both cities are inadequate; water losses run as high as 48% in Sucre and 62% in Potosi. Of the 70 villages, most do not have a community water supply system; where in existence, • the village water systems are old, the quality of the water is poor and water shortages are common. The project wi 11 provide safe and adequate water supply to about 100,000 rural poor living in the 70 villages and to about 50,000 mostly low-income people residing in the two cities; 30,000 people in Sucre will also benefit from an expanded sewer system. The World Bank project will help reduce waterborne diseases and thus improve living conditions and health standards and will, in the Jong run, raise the productivity and incomes of the region's poor. The World Bank loan is for a term of 20 years, including 4t years of grace at 8.9% Interest per annum. Of the proceeds of the loan, $6.7 mill ion wi11 be re-lent to the Sanitary Works Admin- istration of Potosi (AAPOS) and to the Water Supply and Sewerage Company of Sucre (ELAPAS). NOTE: Money figures are expressed in U.S. dollar equivalents . • FOAM NO. 1121 (5-76) T E C HN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Urban & Rural Communities Water Supply Bo 1iv i a $1-5 miilion & Sewerage • BANK FINANCING: $11.5 million, for 20 years, including 4t years of grace, with interest at 8.9% per annum OTHER FINANCING: Regional Development Organization, the communities and the Government of Bolivia IMPLEMENTING ORGANIZATION: Sanitary Works Administration (AAPOS), Potosi, Bolivia; Water Supply and Sewerage Company (ELAPAS), Sucre, Bolivia; and Water and Sewerage Corporation (CORPAGUAS), Casilla 6175, La p·a z , Bo 1 i v i a • PROJECT DESCRIPTION: 1) Construction of water supply systems in about 70 rural communities and in the cities of Potosi and Sucre, including engineering and design studies; 2) construction of sewerage facilities in Sucre; and 3) technical assistance to strengthen the executing agencies and the Division of Urban Engineering in the Ministry of Housing and Urban Affairs. • PROCU.REMENT: Pipes, accessories, meters and related equipment (estimated to cost about $7 million) will be procured through inter- national competitive bidding in accordance with the Bank Guidelines. Local manufacturers will be accorded a margin of preference of 15% of the c.i .f. price, or the actual tariff, whichever is lower. Contracts for civil works estimated to cost less than $2.6 million wi 11 be awarded on the basis of competitive bidding advertised locally and in accordance with procedures acceptable to the Bank. CONSULTANTS· About 91 man-months of consultant services ($402,000), to assist in the preparation of engineering plans, specifica- tions, bidding documents, improvements of organizations, management and accounting; and the training of personnel. ECONOMIC RATE OF RETURN: The average incremental financial rate of return on the urban water supply components which account for 35% of the total project cost is 8.1%. • ESTIMATED COMPLETION DATE: 1981 - 0 -