Peru - Privatization Technical Assistance Project

6- J -S IL W -rc I)omat of The World Bank FOR OMCLAL USE ONLY MICROFICHE COPY Report No..:P- 5870-FE Type: (PR) Title: PRIVATIZATION TECHNICAL ASSISTf Author: ROBERT TAYLOR RepoNo, P5870PE Gr'. 3 19 1 1oo_T-7 - / (/ ieNP &f/LNP MEMORANDUM AND RE TION OF THE PRESIDENT OF THE InTERE TIOIJAL BAUR FOR RECOlNSTRUCTION AND DEVELOPMNT TO THE IEECUVE DIREORS ON A PROPOSED LOAN in AN bMOUWNT EQUVALENT TO US$30 ILLION TO THE REPUBLIC OF PERW FOR A PRIVATIZATION TECHNICAL ASSISTANCE PROJECT NOVEIER 4, 1992 This document has a restricted distibudo and may be used by recipients only In the perfomance of their official dunes. Its contents may not otherwe be disclosed without World Bank autborization.  CURRENCY BOUIVALENTS (as of September 2, 1992) Currency Unit = Sol US$1.00 = 1.295 1 Sol = US$0.77 FISCAL YIEAR January 1 to December 31 ABBREVIATIONS AND ACRONYMS Aeroperu - Peru National Airline (Empresa de Transportes Aereo del Peru) CAF - Andean Development Fund (Corporacion Andina de Fomento) Centromin - Central Peru Mining Company (Empresa Minera del Centro del Peru) CPT - Peru Telephone Company (Compania Peruana de Telefonos) COPRI - Commission for Promotion of Private Investment (Comision de Promocion de la Inversion Privada) CPV - Peru Shipping Company (Compania Peruana de Vapores) Electroperu - Peru Electricity Company (Empresa de Electricidad del Peru) ENATRU - National Urbat. Transport Company (Empresa Nacional Transporte Urbano del Peru) ENTEL - National Te!erphone Company (Empresa Nacional de Telefonos) F1 PRI - Privatization Fund Hierro Peru - Peru Iron Ore Company (Empresas Minera del Hierro del Peru) Minero Peru - Peru Mining Company (Empresa Minera del Peru) OAS - Organization of American States Pescaperu - National Fish Company (Empresa Nacional Pesquera) Petroperu - Peru Petroleum Company (Petroleos de Peru) Quimpac - Pacific Chemicals Company (Quimica del Pacifica) RAP - Rights Accumulation Program SAL - Structural Adjustment Loan Sedapal - Lima Water Company (Servicio Agua Potable de Lima) SOEs - Stateowned enterprises Solgas - Peru Gas Company (Compania Penrana de Gas) TA - Technical Assistance UNDP - United Nations Development Program  FOR OMCIAL USE ONLY PERU PRWAITATION TEHICAL ASSMANZE PROJECT LWAN AND PROJECT SUMbMRY Borrower: Republic of Peru Executig :Agc: Commission for Promotion of Private Ilvestment (COPRI) Beneficiaries: Not applicable 4mount: US$30 million Tom: Payable in 20 years, including five years of grace, wift Interest at the Banrs standard variable rate I!rojet ObjecBve: To assist the Govenumn in the prearation and implementaton of its prlvatization program and rdeaed sectoral policy, legal and regulatory refonns. Project Descripdon: The project will finance: (a) jized-term staff and office support for the COPRI tcnical secreuriat and special privatizaton committe; (b) domestic and int o inrao n and prodonal campaigns for Peru's pdvatiation program, and information programs to assist laid off SOE workers; and (c) consuting services to asist with the preparaton and implementation of priatizaon and related policy/regulatory reforms in mining, hydrocabons, tlecommunications, power, fisheries, akA/uban transport, industry, water, and banking. These consulting services would involve: (i) the preparation of now sectoral laws/reguations; (i) financid, labor, legal and envonmentl audits; (it) valuations; and (iv) the preparation of sales docum ~~~Imdng ~ ~ ~ ~ Lc Fordn 1W f IBRD 7.5 22.5 30.0 Government of Peru 6.5 0.3 6.8 Othert Total: 17.0 26.3 43.3 Rate of Return: NA Eavfronenta lassifictio: c