Contact: Monica Echeverria-Cota (202) 473-1315
To obtain project documents please contact the World Bank's Infoshop
at tel: 202-458-5454, fax: 202-522-1500, email: Enquiries
WASHINGTON, July 29, 1998 —The World Bank has approved a US$30 million loan to Guatemala for a Reconstruction and Local Development Project. The project will finance small productive, cultural, social, and economic infrastructure sub-projects formulated and managed by local communities.
The project objective is to improve the living standards and sustainable self-development of approximately 500,000 people, the majority of whom are indigenous and living in extreme poverty. Community sub-projects will be carried out in 16 municipalities of the Departments of San Marcos and Huehuetenango.
The beneficiaries of the projects will collectively identify, formulate, execute, operate and maintain the community subprojects. To facilitate this, the project will finance capacity-building activities for participating municipal governments and beneficiary organizations in the various aspects of formulation, planning, evaluation, financing, and execution of development plans and the resulting sub-projects
In Guatemala, approximately 16 percent of infants suffer from low birth weight, and approximately 50 percent of children are malnourished. Extreme poverty is concentrated among the indigenous people who account for more than half of the total population, and among women.
"Since the current government negotiated an end to Guatemalas long-standing civil war, an opportunity has opened to strengthen democratic institutions and accelerate economic and social development, particularly for the indigenous people," says Task Manager Rafael Flores.
The US$30 million, single currency, LIBOR-based loan has 20 years to maturity, including a 5-year grace period. The total cost of the project is US$37.5. The Government of Guatemala will provide US$4.5 million, and the project beneficiaries will contribute with an additional US$ 3 million. |
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