Announcement of World Bank Authorizes the Use of Eighty Million Dollars for Emergency Relief Assistance in Peru on December 20, 1983

FOR IMMEDIATE RELEASE World BankRNAnO"• -- t l'O"t:~A,.., JOINT Lil}R~RY ,y FU:iD 1818 H Street, N.W ., Washington , D.C 20433 , U.S.A. • Telephone : (202) 477-1234 r- - t C z /, 1., 83 BANK NEWS RELEASE Contact: Ciro Gamarra December 20, 1983 (202) 477-5320 WORLD FOR EMERGENCY RELIEF ASSISTANCE IN PERU The World Bank has approved $80 million to help Peru finance emergency reconstruction and repair works in the northern part of the country required as a result of recent weather disturbances. The funds are being reallocated from existing Bank loans. Peru has been hard hit by a series of natural weather disasters this year. These include heavy rains and flooding in the northern part of the country, a severe drought in the South, massive landslides in the central area, and a reduction in the fish catch. Most of these disasters are linked to a change in El Nino, a current in the Pacific Ocean off the Peruvian coast, which has also seriously affected weather in other parts of the world. The disasters have caused an estimated $500 million in damages, about 80 percent in the northern departments of Piura and Tumbes. The damages in the country amount to over 40 percent of the 1983 investment budget, at a time when Peru's economy is going through its worst depression in over SO years . Three existing projects have been modified by the Bank to permit financing of the emergency program: the Lower Piura irrigation rehabilitation project (assisted by a $56 million Bank loan in November 1979), the Eighth Highway project (assisted by a loan of $93 million in February 1982), and the Petroleum Production Enhancement project (assisted by an $81.2 million loan in August 1982). The modifications include: (a) reallocation of $22 milion to finance civil works repair under the Piura irrigation project. The principal dam, as well as eight kilometers of the main canal which divert water toward the secondary canals and on-farm irrigation, have been seriously damaged and they have to be repaired as soon as possible. In addition, about 200 km of secondary canals along with associated dikes, drains and access roads will be repaired. (b) reallocation of $38 million to finance civil works repairs (mostly roads and bridges) under the Eighth Highway project. Under the original project the Bank had intended to finance about 160 km of road rehabilitation in the departments of Piura and Tumbes. As a result of the rains, sections originally included in the project will cost more but also some additional, high priority, works are required along 200 km of roads in the area if road links are to be reestablished. The airports in Piura and Tumbes will also be repaired. (c) reallocation of $20 million to finance emergency civil works, materials, equipment, and engineering services under the Petroleum Production Enhancement project. These expenditures will include funds for reconstructing about 200 km of access roads to the producing wells. NOTE: Money figures are expressed in U. S. dollar equivalents