Colombia - Economic growth : problems and prospects (Vol. 3 of 12) : Preinvestment study program

__ tww"IM.~ RESTRICTED RETURN TO F!T Report No. WH-200a 1LPC)IRTS DESK FILE CQlP WVITHIN ONE WErK- 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 The report may not be published nor may it be quoted as representing their views.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 INTERNATIONAL DEVELOPMENT ASSOCIATION ECONOMIC GROWTH OF COLOMBIA: PROBLEMS AND PROSPECTS (in XII volumes) VOLUME III PREINVESTMENT STUDY PROGRAM November 1, 1970 South America Department  CURRENCY EQUIVALENTS (Certificate Market Selling Rate of Exchange) End 1968 1 US $ 16.91 pesos 1 Peso = US $ 0.05913 End 1969 1 US $ = 17.90 Pesos 1 Peso US $ 0.05586 End March 1970 1 US $ = 18.20 Pesos 1 Peso US $ 0.05494  PREINVESTMENT STUDY PROGRAM Table of Contents Page I. INTRODUCTION 1 IT. OBJECTIVES OF THE PREINVESTMENT STUDY PROGRAM 2 III. TYPES OF STUDIES, TIME SPAN AND SECTORS COVERED 3 BY THE PROGRAM I'V. MElTHODS AND CRITiRIA USED IN PROGRAM PREPARATION 4 V. MAIN FEATURES OF THE STUDY PROGRAM RECOMMENDED 6 FOR COLOMBIA ANNEX A : List of Proposed Preinvestment Studies ANNEX B : Study Data Sheets  I. INTRODUCTION :L Growth in most sectors of Colombiats economy continues to depend on the implementation of major investment projects. The timing and success of such projects, in turn, depend largely on the timing and success of the studies that must precede each decision to invest. These "preinvestment studies,"t whlich were a specific concern of the Economic Mission to Colombia in 1970, cover the range of technical, economic, financial and organizational investigations neieded for sectoral development planning and for the preliminary design and anal:r- sis of specific projects. 2. As many developing countries are finding it increasingly important to seet priorities and obtain financing for future studies of this type, Governments and international agencies (including the World Bank Group) have been discussing the need for a comprehensive approach to all preinvestment work, which would lead to better allocations of resources, based on the specific requirements of each country. 3. It is now widely agreed that such an approach to preinvestment work calls for country-wide programs of preinvestment studies which are prepared sy-stematically, cover all important sectors of the national economy, and are linked to the overall strategies for economic and social development of the countries. These programs should ensure that studies of high priority invest- ment projects are planned and carried out at the appropriate time, that the studies cover all issues relevant to investment decisions, and that the limited human and financial resources available for studies are used efficiently. 4. In Colombia, there has been a growing awareness of the need for such a comprehensive approach to preinvestment studies. The Fondo Nacional de Projec- tos de Planeacion (FONADE), supporting the work of the National Planning Depart- ment, of Ministries responsible for sectoral development and of private firms, has coordinated and financed a large number of studies since 1967 in various sectors. FONADE has also cooperated with the United Nations Development Pro- gramme (UNDP) and with other international and bilateral agencies in the financ- ing and preparation of many types of preinvestment activities. Past achievements in this area by FONADE and the UNDP have been significant and have provided a suo- stantial basis for the work of the 1970 Economic Mission to Colombia. 5. The recommended program of preinvestment studies presented in this report has been prepared by the Bank Economic Mission in a coopera- tive effort with the National Planning Department, FONADE, the resident office of the UNDP, several specialized agencies of the United Nations.i! The following sections cover (a) the objectives of the recommended pre- investment study program, (b) types of studies, time span and sectors covered by the program, (c) methods and criteria used in program prepara- tion, and (d) an outline of the main features of the program. A list of the proposed studies and an indication of their priority and cost are given in Annex A of this volume. Data sheets for each study are reproduced in Annex B. 1/ FAO, PAHO, UNESCO and the World Food Program.  - 2 - 5. i