Announcement of Third Medium-Size Cities Water Supply Project Assisted by the World Bank in Mexico on May 19, 1983

FOR IMMEDIATE RELEASE ' . eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 83/83 ContacL: Ciro Gamarra May 19,1983 (l02) 477-5320 THIRD MEDIUM-SIZE CITIES WATER SUPPLY PP~JECT ASSISTED BY THE WORLD BANK IN MEXICO Water supply services will be made available to approximately 1.4 million people as a result of a project assisted by the World Bank in Mexico. Another 1.2 million people will have access to sewerage services provided by the project, the third of its kind supported by the Bank in this country. The International Bank for Reconstruction and Development (IBRD) has approved a $100.3 million loan to help finance a $193.3 million water supply and sewerage project that will support the Mexican government's goals in the sector and will help improve the environmental and health conditions of the population. The Third Medium-Size Cities and Sinaloa State Water Project will provide new and improved water supply and sewerage services and related facilities in the • cities of Celaya, Colima, Ciudad Guzman, and Tapaclutl.a, and in other medium-size cities to be selected later~ The project will also strengthen the Sinaloa State Water Board (CEAPAS) and the regional companies under its control by improving their managerial, adminis- trative~ financial, and technical procedures. This component also includes a construction program in the cities of Culiacan, Los Mochis, T.opolobambo, and Mazatlan, in the State of Sinaloa. Finally, the project will finance the prp·~ision of technical assistance to the General Directorate of Water Supply and Sewerage Systems (DIGESAPA) in the Secretariat of Urban Development and Ecology (SEDUE) and to the Investment Fund for Water Supply and Sewerage Works (FIPAPA) in the National Bank for Public Works (BANOBRAS) • Under the project, water supply coverage for the urban poor will increase from 58% in 1983 to 88% in 1987, while the sewerage coverage will increase from 35% to 65% during the same period. The World Bank has been assisting Mexico with the implementation of water supply and sewerage projects since 1973. A loan of $90 million in June 1973 helped finance a water supply project for the Mexico City metropolitan area. The Bank has also made two loans to FIPAPA, totalling $165 million, to finance water supply and sewerag,e projects for medium-size cities. It has also financed water supply and sewerege works under several projects in tourism, urban and rural development • • The $100.3 million IBRD loan was made to BANOBRAS with the guarantee of the United Mexican States. The loan includes a capitalized front-end fee of $300,000. It will have a 15-year term, including 3 years of grace, at an annual rate linked to the cost of Bank borrowings. NOTE: Money figures are expressed in U.S. dollar equivalents.