Announcement of Millions of Colombians will Have Access to Expanded Safe Water and Sewerage Facilities on June 20, 1988

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 88/93 Contact: A.M. Pimenta-Neves (202) 473-8722 MILLIONS OF COLOMBIANS WILL HAVE ACCESS TO EXPANDED SAFE WATER AND SEWERAGE FACILITIES WASHINGTON, June 20, 1988 -- More than 3 million people, mostly poor, will benefit from a $435 million water and sewerage sector project being undertaken by Colombia with the assistance of the World Bank. The World Bank.is lending $150 million for the project, which will contribute to the implementation of a national sector reform program, already under way. The loan will be disbursed over seven years and will help finance aproximately 80 subprojects, involving the rehabilitation and expansion of water supply and sewerage systems in about 400 coDDJ1unities, and improvement of solid waste disposal services in about 10 cities. Currently, 43 percent of Colombia's population lacks access to piped water and 60 percent does not have adequate sewerage or sanitation facilities. The government has already introduced major changes in the institutional organization of the water and sewerage sector. One of the main changes is the abolition of the National Institute for Urban Development (INSFOPAL), which had failed to promote efficient development of the water and sewerage sector. The government replaced INSFOPAL with the Urban Development Fund of the National Mortgage Bank, an institution with a good record in promoting sound municipal infrastructure projects. Local governments will take over regional or departmental companies owned or managed by INSFOPAL. The loan is for 17 years, including five years of grace, with a variable interest rate, currently 7.72 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.