Announcement of World Bank Lends Mexico Four Hundred Eighty Million US Dollars for Water Supply and Health on November 30, 1990

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. 91/24 Contact: Ciro Gamarra (202) 473-8721 WORLD BANK LENDS MEXICO $480 MILLION FOR WATER SUPPLY AND HEALTH WASHINGTON, November 30, 1990 -- Mexico's programs for improving water-supply, sanitation, and health care services for more than 16 million people across the country will be assisted by two World Bank loans totaling $480 million. The first loan, for $300 million, was made to the National Development Bank for Public Works and Services (BANOBRAS) to help improve the quality and quantity of water supply and sanitation services for 3.2 million poor people. The second loan, for $180 million, was made to Nacional Financiera, the government's national financing company, to help strengthen and extend basic health care services and targeted nutrition assistance to about 13 million uninsured poor in the states of Oaxaca, Chiapas, Hidalgo and Guerrero and in the Federal District of Mexico. Water Supply and Sanitation Project The $650.9 million water supply and sanitation sector project will support the implementation of a sector-reorganization program, which will promote sound pricing policies, reduce the need for government funding and improve environmental conditions. The World Bank loan will partially finance Mexico's $4.5 billion 1990- 1994 sector investment program. By the end of 1994 it is expected to provide water supply and sanitation services to about 24 million additional people, most of whom are poor, of which 3.2 million will be direct beneficiaries. The water-supply project will assist in the institutional development of BANOBRAS, the National Water Commission (CNA), and the Mexican Institute of Water Technology (IMTA). It will also sdpport the implementation of new sector policies, finance studies to prepare model contracting documents and develop a strategy to encourage private sector participation in the provision of water and sanitation services, and finance the preparation of a water pollution control project. NOTE: Money figures are expressed in U.S. dollar equivalents. 2 The balance of project costs will be provided by the operating agencies ($98 million), the state governments ($130.5 million), and the federal government ($122.4 million). The World Bank loan will be disbursed in six years. Basic Health Care Project The $249.8 million health care project will focus on expanding and improving the delivery of basic health care and nutrition services. It will finance the rehabilitation and upgrading of 1,169 health centers and development of a maintenance program for facilities and equipment. The World Bank loan will help finance equipment, furniture, ambulances, and basic medical supplies; hiring and reassignment of 7,000 personnel; improvements in the supervision system and technical training; and production and distribution of operation manuals and educational materials. The project will directly benefit 3 million women of childbearing age and 1.7 million children under five years of age by improving their health and nutritional status. The project will also help reduce the incidence of maternal and infant mortality. The project will contribute to the improvement of the management, administration, client responsiveness, and overall efficiency of public health services, partly as a result of system decentralization. And it will increase the proportion of resources going to basic health care and nutrition assistance for vulnerable groups in the poorest states of Mexico. The World Bank loan will be disbursed over six years. The government of Mexico will provide $69.8 million to cover the remaining balance of project costs. The two World Bank loans have the guarantee of the United Mexican States and are for 17 years, including five years of grace, with a variable interest rate, currently at 7.72 percent, linked to the cost of the Bank's borrowings. They also carry an annual commitment charge of 0.25 percent on the undisbursed balances. -0- （、‘&- } 一 尖