The World Bank Approves $45 Million For Transport Project In Peru

WASHINGTON, December 9, 2003 – The World Bank today approved a $45 million loan to support a transport project in Peru’s capital city of Lima and improve the mobility and accessibility of the urban poor neighborhoods, by establishing an efficient, reliable, cleaner and safer public transport system. In addition, the Bank announced it will administer a $7.93 million grant from the Global Environmental Facility (GEF) to support environmentally friendly transport.

“This project will improve the mobility of poor urban residents, especially those living  on the periphery of the metropolitan area, which will contribute, therefore, to enhance economic productivity and improve the quality o life in Lima,” said Marcelo Giugale, World Bank Director for Bolivia, Ecuador, Peru and Venezuela.

The Lima Transport Project will implement an innovative Bus Rapid Transit system and support other forms of  low-cost transport , such as cycling and walking . In addition, financing from the loan will be used to strengthen  local institutional capacity to regulate and manage Lima’s transport sector and reduce the negative environmental impact of motorized transport in Lima.

Under the project, busways will be built and road infrastructure will be rehabilitated,  combined with traffic management measures and road safety improvements.  Pedestrians, bicyclists and mobility constrained persons will benefit from the new measures and road improvements, while public transport users, especially the poorest living in the northern and southern areas of the capital, will benefit from improved services.

“Benefits from the transport project include the reduction of traffic congestion and emissions, as well as improved public transport services, better road safety and reduced travel times,” said Paulus A. Guitink, World Bank task manager for the project.

This single-currency, fixed spread loan has a repayment period of 20 years, including 5 years of grace. The total cost of the project is $142.33 million.

The $7.93 million grant from the GEF will help facilitate greenhouse gases reductions and contribute to the promotion of more efficient and less polluting  forms of transport, such as non-motorized transport and high-capacity public transport vehicles operated on segregated  busways.

For more information on the World Bank’s work in Peru, please visit: http://www.worldbank.org/pe