Media Contacts:
Alejandra Viveros (202) 473-4306
Aviveros@worldbank.org
Lee Morrison (202) 458-8741
Lmorrison1@wordbank.org WASHINGTON, September 15, 2004 - The World Bank Board of Executive Directors has approved a $5 million loan to support the Government of Peru's efforts to protect some of Peru's most important cultural sites in the Vilcanota Valley, including Machu Picchu and the Sacred Valley of the Incas. "The Vilcanota Valley is one of the most important and beautiful pre-Columbian sites in Latin America," said Marcelo Giugale, World Bank Director for Bolivia, Ecuador, Peru and Venezuela. "This project will help the Government of Peru preserve and sustain the human, social, natural, cultural and historical assets of the valley." The Vilcanota Valley Rehabilitation and Management Project will foster sustainable development initiatives in the Vilcanota Valley, which counts around 100,000 inhabitants, through support to cultural preservation, tourism development, urban infrastructure, environmental protection, and local economic development. The project will be implemented in partnership with UNESCO, the National Geographic Society, the World Monuments Fund, NGOs and bilateral donors. It will also complement an ongoing Bank-supported water and sanitation project (PRONASAR) and help to mobilize private- and public-sector investments in the Valley. A particular aim of the project is to assist the Government of Peru in its efforts to improve management of tourism in the Historic Sanctuary of Machu Picchu and preserve Machu Picchu's status as a World Heritage Site. The new loan will support four project components: - Promote sustainable tourism sector development in the Vilcanota Valley through investments in visitor services, historic preservation, and cultural education for local residents and tourists;
- Facilitate access to improved urban services and infrastructure throughout the Valley, through development of a regional solid waste management system, resettlement of vulnerable households in Machu Picchu Pueblo, and detailed engineering, environmental impact assessments and investments in urban infrastructure;
- Support local economic development by enhancing the capacity of local tourism service providers, constructing community telecenters, and incubating local economic initiatives through a demand-driven development marketplace facility;
- Enhance the strategic planning and management capacity of municipalities in the Valley.
"A key component of the project will be to resettle 60 Machu Picchu Pueblo families whose homes are highly vulnerable to landslides, which constitute a hazard to the families and frequently close down the rail line, the only access to the pueblo and the Machu Picchu ruins," said Roberto Chávez, World Bank task manager for the project. "The affected families have agreed to the compensation plan and the relocation area." The fixed-spread $5 million sector investment loan is repayable in 14 years, with a grace period of eight years. The total project cost is $8.2 million, including expected financing from the Government of Peru of $3.2 million. - |
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