Peru - Higher Agricultural Education Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-3393-PE REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$17.3 MILLION TO THE REPUBLIC OF PERU FOR A HIGHER AGRICULTURAL EDUCATION PROJECT October 19, 1982 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 authorization.  CURRENCY EQUIVALENTS The exchange rate is being adjusted daily roughly in line with the differential between domestic and international inflation. The exchange rate and currency equivalents in 1981 and as of September 30, 1982 were as follows: Currency Unit = Sol (S/.) Calendar 1981 September 30, 1982 US$1 S/. 426.60 S/. 792.77 S/.1 US$0.0023 US$0.0013 S/.1,000 US$2.34 US$1.30 FISCAL YEAR January 1 to December 31 ABBREVIATIONS bpd = barrels per day ERP = Economic Recovery Program IDB = Inter-American Development Bank INIPA = Instituto Nacional de Investigacion y Promocion Agropecuaria (National Institute for Agricultural Research and Extension) NAU = National Agrarian University RDI = Regional Development Institutes of the NAU USAID = United States Agency for International Development  REPUBLIC OF PERU FOR OFFICIAL USE ONLY HIGHER AGRICULTURAL EDUCATION PROJECT LOAN AND PROJECT SUMMARY Borrower: The Republic of Peru Beneficiary: National Agrarian University (NAU) Loan Amount: US$17.3 million equivalent, including a capitalized front-end fee. Terms: Repayable in 17 years, including four years of grace, at the standard variable interest rate. Project Description: The project would assist the NAU to improve its facil- ities and the quality of its courses and research activ- ities and to expand its graduate program. The project would finance: (i) rehabilitation of the central campus, which was heavily damaged by a 1974 earthquake; (ii) instruction and research facilities for four of the five farms which comprise the NAU's regional development institutes; (iii) equipment for the central campus and regional development institutes; (iv) studies abroad at the graduate level for about 60 NAU professors; and (v) technical assistance to reorganize and strengthen the NAU's graduate agricultural economics program. The only special risk faced by the project is the possibility of future earthquake damage. To minimize this risk, antiseismic designs have been adopted and construction would be closely supervised by engineers experienced in seismic construction. Estimated Costs (including about US$1.4 million equivalent in local taxes): Local Foreign Total ------ US$ million ------ A. Rehabilitation/Expansion of Central Campus 13.2 5.9 19.1 B. Regional Development Institutes 2.4 1.3 3.7 C. Teacher Upgrading - 2.3 2.3 D. Reorganization of Agricultural Economics Program - 0.2 0.2 E. Project Coordination 0.2 0.1 0.3 Base Cost 15.8 9.8 25.6 Phys:ical Contingencies 1.6 1.0 2.6 ,Price Contingencies 3.8 2.8 6.6 Total Project Cost 21.2 13.6 34.8 Front-End Fee on Bank Loan - 0.26 0.26 TOTAL FINANCING REQUIRED 21.2 13.8 35.1 Tdirs documant hu a rostrcted di tribution tnd may be used by rciponts only in the performzatei. of their olbcW duties. Its contents may not otherwise be di cbset without World Bank authorization.|  - ii - Financing Plan: Local Foreign Total ------- US$ millions --- National Agrarian University 2.0 - 2.0 Government 15.8 - 15.8 Bank 3.4 13.9 17.3 Total 21.2 13.9 35.1 Estimated Disbursements: Bank FY 1983 1984 1985 1986 1987 1988 1989 ------------- - US$ million ---------------