Announcement of First World Bank Financed Urban Project to Improve Poor Neighborhoods in Bolivia on October 6, 1977

•World Bank 1 :-: !:$ H ~~treet. N.\V .. Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/17 0 ct ob er 6 , 19 77 FIRST WORLD BANK FINANCED URBAN PROJECT TO IMPROVE POOR NEIGHBORHOODS IN BOLIVIA SoMe 10,000 poor families living in low-income areas of La Paz wi 11 benefit from the first World Bank financed urban .development project in Bolivia. The World Bank announced today the approval of a $17 mil lion loan for a project aimed at improving the living conditions of the urban poor in Bolivia. The project wi 11 have a total cost of $22.5 mi 11 ion. It wi 11 attempt to ease ~. ome of the most acute urban problems of the people living in low income neighborhoods of La PazQ The popul~tion of La Paz -- the largest city of the country -- is about 655,000 • of \,1hich 62% live in i rregular housing 11 in low-income neighborhoods along the 11 periphery of the city or in outright slum areas. Less than 57% of the urban population in Bolivia have access to piped water and less than 23% to any type of sewerage facilities. The project aims to provide improved shelter, to increase essential urban services arid to stn~ngthen institutional arrangements for implementing urban programs efficiently •,.;hi le improving income distribution and environmental conditions. Also, it would, for the first time in Bolivia, make credits available to artisans and smal 1-scale enterprises who either live or are closely associated with the sites and services and upgrading areas of the project. About l ,600 new jobs are expected to be created through this project. The project wl 11 consist of the development of 5,525 new serviced plots with Lore dwelling units and 142 industrial/commercial plots in El Alto of La Paz; essential urban services for about 4,500 families in an urban upgrading program; construction of five new retail food markets; credits for artisans and small-scale enterprises; and teshnical assistance. The loan to the Republic of Bolivia wi 11 have a term of 20 years, including five ·:nur~ of grace? at 8.0% interest per annum. Except for $4.5 million, all loan funds wi 11 be relent by the Government to three executing agencies, Consejo Nacional de Vivienda (CONAVI), the Municipality of La Paz and Banco Industrial, S.A. (BISA) • • Note: Money figures are expressed in U.S. dollar equivalents~ FORM NO. 1121 (5-76) T E C HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Urban Development Bolivia $22. 5 mi 11 ion • BANK FINANCING: $17 mil lion for a term of 20 years, including 5 years of grace, with interest at 8.0 percent per annum. OTHER FINANCING: Government of Bolivia: $5 mi 11 ion Banco Industrial S.A.: $0. 5 mi l l ion IMPLEMENTING ORGANIZATION: Consejo Nacional de Vivienda (CONAVI) for sites and services component. Honorable Alcaldia Municipal de La Paz for the urban upgrading component and the construction and operation of the retai 1 food markets. Banco Industrial for the credits for artisans and small-scale enterprises. Banco de la Vivienda (BANVI) as financing and fiscal agent for government. PROJECT DESCRIPTION: a) ~·tes and Services - development of 5,525 new se rvTZ:°ed plots with core dwe 11 i ng uni ts and 142 industrial/commercial plots in El Alto of La Paz, and provision of community facilities and construction materials credits; b) Urban Upgra~ - provision of essential infra- structure, other urban services and construction materials credits to about 4,500 • families 1 ivirig in low-income areas of La Paz; c) Retail Food Markets - construction of 5 new retai 1 food markets to serve low-income areas of La Paz; d) Credits for Artisans and Small-Scale Enterprises designed to increase incomes and provide about 1,560 new jobs among how-income groups primarily in the areas of the project; e) Technical Assistance for the efficient implementation of this project and for the preparation of additiona~ programs in La Paz and elsewhere in the country. PROCUREMENT: Most civil works are relatively small and scattered and in some cases mutual-aid labor is also envisaged. Hence, most contracts wi l 1 be awarded according to local bidding procedures. Al the urban upgrading component ($3.9 mi 1 lion) and about 27% of the sites and services component $3.7 mill ion) wi 11 be carried out by force account. Contracts for the supply of equipment wi 1 I be awarded on the basis of international competitive bidding. CONSULTANTS; The 214 man-months of consultancy services will include 199 man-months of foreign consultants. It wi 11 comprise 79 man-months to Banco de la Vivienda (BANVI) for support of the operations of the project unit; 63 man-months to Accion Comunal for facilitating credit to artisans and for preparing a computerized system for further analysis of low-income popuiation in La Paz; 24 man-months to Banco Industrial to assist in the management of the new 1 ine of credits for artisans and smal 1-scale enterprises; 24 man-months to CONAVI for design, supervision and improved administrative procedures; and 24 man-months to the Ministry of health for proqra~s to improve health and nutrition of low-income groups in La Paz • • ESTIMATED COMPLETION DATE: The sites and services and the urban upgr~ding components combined economic rate or return is estimated at 18%.