Contacts: In Washington: Gabriela Aguilar (202) 473 6768 gaguilar2@worldbank.org In Colombia: Maria Clara Ucros (57-1) 3263600 ext. 259 mucros@worldbank.org WASHINGTON, October 21, 2008 – The World Bank Board of Directors approved today a US$ 30 million loan in additional financing for the Bogota Urban Services Project aimed at increasing activities related to urban mobility and strengthening institutions. In order to achieve these goals, plans have been made to design improvements on the Integrated Massive Transit System of the city, including the subway; lend technical assistance to help strengthen the Institute of Urban Development and support the Ministry of Finance for the District in strengthening and improving its fiscal management capacities and cadastre procedures. “In offering these resources we reiterate our support to the District of Bogota and its 7 million inhabitants, so that through improved mobility they may seek better job options, education and social services, thus reducing urban poverty more efficiently”, said Axel van Trotsenburg, World Bank Director for Colombia and Mexico. “The District has proved to be consistently innovative in urban development and has shown solid financial management that allows for an integral vision to improve quality in this important urban area.” he added. This additional financing is in line with the objectives of the National Development Plan 2008-2012, “Bogota Positiva: para vivir mejor” (A Positive Bogota for a Better Life), which intends to improve the conditions of urban life by increasing access, coverage, quality and reliability in the provision of transportation for residents in low income areas. The program also supports the strategic goal “Sustainable Finances” which means to consolidate a sustainable fiscal model for the city’s administration. The activities to be financed through this loan will be, essentially, technical assistance and investigation, as well as an extension on components of the initial project, such as: - Improved Urban Mobility.-. This component aims to expand and improve the integral net of urban public transport in Bogota, including development of the first subway line. With the expected integration of public urban transportation in mind, several investigations will be conducted: analysis on fiscal and environmental impacts; design and engineering studies, and the financial and legal framework for building and operating the subway, including matters related to structuring agreements with the private sector. Support will also be given to the implementation of the integration of public transport.
- Strengthen institutions.-. On one hand, this component is aimed at strengthening the administrative capacity of the Urban Development Institute (IDU) in managing the city’s network of roads and, on the other hand, it has identified that land tax management and the cadastre administration requires special attention, in order to achieve a fiscal well being in the medium term.
"Bogotá has become a world referent in matters such as mobility and public spaces. The Bank financed the conceptualization study and part of the first phase of Transmilenio (80th street), and will now continue to help with the integration of the transport system and the future first subway line. The integration of public transport intends to give access to transportation to low income people and, given the elevated rates of motorized transportation, promote public transport over private, thus diminishing congestion and its impact on the environment ", said Mauricio Cuellar, Senior Transport Specialist and the project’s Team Leader. This additional financing is consistent with the Country Partnership Strategy approved last April, which recognizes that it is essential to maintain sustainable and fast growth, promote competitiveness in the productive sectors and improve access to basic services for the underprivileged sectors. The total amount of the additional financing required is US$ 62.60 million, of which the World Bank will cover US$ 30 million; the Inter-American Development Bank, US$ 10 million, and the District of Bogota US$ 22.60 million. The agency responsible for the execution of the World Bank resources of the loan is the District of Bogota. It is a fixed spread loan payable in 10 years with a 5 year grace period. A front end fee was set at 0.25% of the total amount. The project is expected to be concluded by Julio 31, 2011. - |
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