| Contacts: Gabriela Aguilar (5255) 5480-4200 Gaguilar2@worldbank.org Alejandra Viveros (202) 473-4306 Aviveros@worldbank.org WASHINGTON, November 1, 2005 – The World Bank’s Board of Directors approved today an $86.4 million loan to Colombia to support a poverty reduction program. The Social Safety Net Project will strengthen the country’s capacity to reduce poverty and inequality and promote human capital investments among the poor by consolidating and expanding the successful Familias en Acción conditional cash transfer program, as well as by improving the monitoring and evaluation of the country’s safety net portfolio. “A strong social safety net is a key element of the country’s Visión Colombia 2019 strategy to achieve poverty reduction and make sure that all Colombians share the benefits of growth,” said Isabel Guerrero, World Bank Country Director for Colombia and Mexico. “This project will complement ongoing efforts in the health and education sectors by providing cash transfers to 400,000 extremely poor families conditioned on their children’s regular school attendance and health clinic visits.” Even though Colombia has been emerging from the severe economic crisis, many social challenges remain. Many children remain vulnerable to malnutrition and illness, and a high proportion of families still do not have access to good quality basic health care services. In addition, Colombia continues to lag behind other competitor countries in access and quality of education and training, undermining its prospects for greater long-term competitiveness and growth. The Social Safety Net Project will support the following activities: - Consolidate and expand the Familias en Acción program from 340,000 to 400,000 families by including extreme poor families in marginalized urban areas as well as high priority zones affected by violence. The project will disburse cash transfers (grants) to poor families linked to compliance with key human development conditionalities, such as school attendance and health check-ups.
- Improve the monitoring and evaluation system of the Ministry of Social Protection in order to better track and critically review the country’s social safety net portfolio. This component will, in turn, increase the transparency and efficiency of the social safety net and its various implementing agencies.
“The project will directly contribute to Colombia’s efforts toward the achievement of the Millennium Development Goals, especially in terms of reducing poverty, inequality, hunger and malnutrition,” said Andrea Vermehren, World Bank task manager for the project. “Additionally, it will have significant effects on achieving universal primary education, reducing child mortality, and improving maternal health.” The $86.4 million, fixed-spread loan carries a total repayment period of 5 years, including an 8.5-year grace period.
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