Peru - Aviation Development Project

Document of The World Bank 0IL tIir FOR OFFICIAL USE ONLY Report No. P-2979-PE REPORT AND RECOMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE CORPORACION PERUANA DE AEROPUERTOS Y AVIACION COMERCIAL (CORPAC) WITH THE GUARANTEE OF THE REPUBLIC OF PERU FOR AN AVIATION DEVELOPMENT PROJECT March 4, 1981 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorizaion.  CURRENCY EQUIVALENTS The exchange rate is being adjusted daily roughly in line with the difference between domestic and international inflation. The exchange rate and currency equivalents in effect on January 31, 1981 were as follows: CURRENCY UNIT = Sol (S/.) Calendar 1980 January 31, 1981 US$1 = S/. 287.8 SI. 353.0 SV. 1 = US$0.0035 US$ 0.0028 SI. 1,000 = US$3.47 US$ 2.83 FISCAL YEAR January 1 to December 31 ABBREVIATIONS AEROPERU Aerolineas del Peru (Peru's State-owned airlines) COPESCO Comision Especial para Coordinar y Supervigilar el Plan Turistico y Cultural (Cuzco regional tourism development corporation) CORPAC Corporacion Peruana de Aeropuertos y Aviacion Comercial (Peru Airports and Civil Aviation Authority) DGTA Direccion General de Transporte Aereo (General Directorate of Air Transport) ERP Economic Recovery Program IDB Inter-American Development Bank MTC Ministerio del Transporte y Comunicaciones (Ministry of Transport and Communications) PPAR Project Performance Audit Report PPF Project Preparation Facility USAID United States Agency for International Development  FOR OFFICIAL USE ONLY REPUBLIC OF PERU AVIATION DEVELOPMENT PROJECT LOAN AND PROJECT SUMMARY Borrower.: Corporacion Peruana de Aeropuertos y Aviacion Comercial (CORPAC) Guarantor: Republic of Peru Amount: US$58.0 million Terms: Repayable in 17 years, including 4 years of grace, at 9.6 percent interest per annum Project Description: The objectives of this project would be to increase the efficiency and security of civil aviation in Peru and improve service to the eastern jungle and jungle high- land regions, which currently have poor transport links with the rest of the country. This would be accomplished through (i) the improvement of three regional airports and construction of a fourth; (ii) provision on a nation-wide basis of communications, navigational and other aviation equipment including a flight inspection aircraft; and (iii) final engineering for the project airports and for a new airport at Cuzco and technical assistance for CORPAC. This project faces no special risks. This document has a rsricaed distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost: The estimated cost of the project, including about US$10.0 million in taxes and customs duties, is: Local Foreign Total --------(US$ million)--- 1. Airport Improvement and Construction 15.9 21.4 37.3 Tarapoto 6.0 8.4 14.4 Pucallpa 2.9 4.0 6.9 Huanuco 1.8 2.4 4.2 Tingo Maria 5.2 6.6 11.8 2. Equipment 17.1 28.2 45.3 Communications 10.4 14.1 24.5 Navigational Aids 3.9 4.5 8.4 Flight Inspection Aircraft 1.4 5.7 7.1 and Equipment Other 1.4 3.9 5.3 3. Consultants Services 1.3 3.4 4.7 Baseline Costs 34.3 53.0 87.3 Physical Contingencies 3.3 4.9 8.2 Price Contingencies 13.0 19.1 32.1 Total Costs 50.6 77.0 127.6 Financing Plan: Local Foreign Total --------(US$ million)-------- Bank Loan -- 58.0 58.0 CORPAC 49.4 -- 49.4 Government 1.2 -- 1.2 Cofinancing -- 19.0 19.0 50.6 77.0 127.6 Estimated Disbursements: Bank FY 1982 1983 1984 1985 1986