Contacts: Monica Echeverria-Cota, (202) 473-1315
Pelayo Alvarez (202)-473-4306
WASHINGTON, November 12, 1998 — The World Bank today approved a US$50 million equivalent credit to help finance the Second Social Investment Fund (FIS II) in Guatemala.
The project will support to the Government of Guatemala's poverty alleviation efforts as well as its immediate emergency and reconstruction needs in the wake of Hurricane Mitch. This will be achieved by financing small-scale infrastructure in the areas of education, health, water supply, sanitation, and social infrastructure in those areas where poverty is most acute.
FIS was created in 1993 to improve the living conditions of the poor population of rural Guatemala following many years of civil war. FIS II will continue the work of FIS as well as respond to urgent new needs created by the devastation of hurricane Mitch. "Bank and Social Investment Fund staff are already working to ensure that community needs for rehabilitation of basic infrastructure and services are met in the shortest possible time," said World Bank Country Sector Leader for Guatemala Ana-Maria Arriagada.
The project will emphasize and rely significantly on the participation of beneficiaries, locally-based NGOs, local governments, and the private sector to ensure that investments represent local priorities and that prospects for sustainability are maximized.
The US$50 million equivalent project is a single-currency IDA credit with a maturity of twenty years, including a five year grace period. |
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