Announcement of World Bank Lends Peru Twenty-One Million Six Hundred Thousand US Dollars for Urban Development on June 10, 1976

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 Bank News Release No. 76/76 June 10, 1976 WORLD BANK LENDS PERU $21,6 MILLION FOR URBAN DEVELOPMENT The World Bank wi 11 support a $43.2 million urban sites and services development project in Peru with a loan of $21.6 million, it was announced today. The project is an integral part of Peru's Program to increase the capacity of the urban poor to become a productive element in the urban economy. The primary objective of the project is to contribute to the economic and social advance of some 200,000 residents in the Pueblos Jovenes settlements (literally Young Settlements) in Lima and Arequipa. • Basic facilities to be provided under the project include some 7,200 water supply connections, 11,000 sewer connections and 16,300 electricity connections to households in Pueblos Jovenes settlements in Lima and Arequipa; access roads to connect settle- ments in Lima to main roads; and health and nutrition centers in settlements in Are- quipa3 The project wi 11 also help establ.sh industrial sites and services in Lima and Arequipa, and housing and commercial sites and services in Lima. Related technical assistance will support the implementation of the project. The Banco de la Vivienda del Peru - BVP (National Housing Bank), will be responsible for the execution of the project, expected to be completed in 1980. The loan to BVP with the, guarantee of the Republic of Peru wi 11 be for 20 years, including three years of grace, at 8.85% annual interest. Note: Money figures are expressed in US dollar equivalents • • Form No. 1121 (9- 75) PROJECT: T E CHNI CAL DAT A Urban Sites and Services Development • COUNTRY: Peru TOTAL COST: $43.2 million BANK FINANCING: $21.6 mill ion, 20 years, including 3 years of grace, 8.85% annual interest OTHER FINANCING: Banco de la Vivienda dei Peru (Nationai Housing Bank)) $19.1 million; household bneficiariesi $2.5 million IMPLEMENTING ORGANIZATION: Banco de la Vivienda del Peru (BVP) Camana 488 Li ma l , Peru PROJECT DESCRIPTION: The project consists of: Infrastructure - water and sewerage for Pueblos Jovenes (Young Settlements) in • Lima and Arequipa, providing about 7,200 water and 11,000 sewerage ser• ice connections; 1 electrification of 16,300 households in Lima and Arequipa; 86. 1 kilometers of access roads for settlements in Lima; health and nutrition centers for settlements in Lima. Productive Investments - industrial sites and services (about 63.5 hectares) in Lima and Arequipa; housing and commercial sites and services in Lima; and supervised credit in Arequipa. And Technical Assistance - to assist settlers primarily in self-help construction; for planning, management and monitoring of industrial sites and services; to review plans and prepare a water supply and sewerage project; to develop a training program for community health and nutrition planning and related studies for the mobilization of additional resources for urban development program and future projects. PROCUREMENT: Contracts for civi 1 works and equipment to be financed by the loan will be procured after international competitive bidding, except for about $240,000 worth of locally manufactured equipment and electrical facilities to be procured through domestic competitive bidding. CONSULTANTS: To be employed to provide technical assistance as described above. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 30% for the quantifiable components of the project. 1980 • -0-