Mexico - Second Irrigation Rehabilitation Project

RESTRICTED FILE CO-PY Report No. P-315 This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATIONS OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO NACIONAL FINANCIERA, S.-A. IN MEXICO April 17, 1963  INTERNATIONAL BAhNK FCR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMENDATIONS OF THE PRE'3IDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO NACIONAL FINANCIERA' S.A.,IEXICO 1. I submit the following Report and Recommendations on a proposed Loan in an amount in various currencies equivalent to $12.5 million to Nacional Financiera, S.A. to finance the foreign exchange cost of an irrigation project in Mexico. PART I - HISTORICAL 2. The Mexican Government first asked the Bank in 1959 to consider financing the rehabilitation of irrigation projects in Mexico. As a result of ensuing discussions the Ministry of Hydraulic Resources worked out a program for the completion and rehabilitation of 22 irrigation districts. This program wiras re- viewed by the Bank, and on January 16, 1961, the Bank made a loan for $15 million (Loan 275 ME) to help finance the first phase of the program, the rehabilitation of four irrigation distr