Contacts: In Mexico: Gabriela Aguilar (5255) 54-80-4252 Gaguilar2@worldbank.org In Washington: Patricia da Camara (202) 473-4019 Pdacamara@worldbank.org WASHINGTON, September 6, 2005 – The World Bank’s Board of Directors today approved a $200.5 million loan to support Mexico’s efforts to promote sustainable development by balancing socioeconomic development with sound environmental management.
The Second Programmatic Environment Development Policy Loan is the second in a series of three loans to be disbursed over a five-year period, and supports the Government of Mexico’s efforts to mainstream environmental concerns in the development agenda of key sectors such as tourism, energy, water and forestry. The loan also seeks to improve the efficiency and effectiveness of local environmental management processes in the country.
In particular, the program will support activities in the following sectors:
Tourism - Establish new tourism destinations and promote sustainable tourism action plans in selected tourist destinations. Improve environmental conditions – especially wastewater and solid waste disposal – at existing tourist sites, and decrease overexploitation of natural tourism resources.
Energy - Reduce local air pollution and mitigate its impact on human health by promoting renewable energy, improving the quality of fuels with respect to sulfur content, and ensuring that energy facilities are operated in a sustainable manner.
Forestry - Implement a new legal and regulatory framework to address high rates of illegal logging, and promote employment opportunities among natural resources owners through appropriate valuation of forest resources.
Water - Increase incentives for water conservation, investment, and management through the rationalization of water fee collection. In addition, the program seeks to increase the volume of treated wastewater.
Environmental management – Strengthen the capacity of environment authorities to foster inclusive public participation, accountability, and transparency.
“By increasing public participation in decision-making and transparency in environmental management processes, the program will not only help ensure that the needs of vulnerable persons are taken into account, but will also promote the sustainable development of the tourism, energy, water, and forestry sectors,” said Ernesto Sanchez-Triana, World Bank task manager for the project.
The first loan, completed in 2004, supported the establishment of mechanisms for inter-institutional coordination among key sectors, the development of medium-term targets to guide the incorporation of environmental concerns in these sectors, and the modification of laws to facilitate improvements and increase transparency in environmental management.
The $200.5 million fixed spread, U.S. dollar-denominated loan, is repayable in 14.5 years, including a 4.5-year grace period.
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