Contacts: In Washington: Alejandra Viveros, (202) 473-4306 Aviveros@worldbank.org In Lima: Sandra Arzubiaga, (511) 615-0660 Sarzubiaga@worldbank.org
WASHINGTON, March 14, 2006 – The World Bank’s Board of Directors today approved a $25 million loan for Peru to establish a modern property rights system that will stimulate tenure security and private investment. The Real Property Rights Consolidation Project will establish a property rights system where physical and legal information on public and private real property will be efficiently and timely collected and recorded, and made available to the public. Such a system will increase tenure security, enhance transaction transparency, improve governance at the central and local level, and facilitate access to financial products by the poor. “The system supported by this project will enhance the welfare of real property owners and facilitate access to economic opportunities,” said David F. Varela, World Bank task manager for the project. “The loan will expand the benefits of the Urban Property Rights Project under a decentralized management structure, adopting new approaches aimed at reaching new users in new areas,” added Jorge Luis Archimbaud, co-task manager of the operation. Specifically, the project will support the following activities: · Strengthen the policy-making process on property rights in Peru. This component will finance the technical assistance required to facilitate property rights knowledge management, and to prepare sound legal and regulatory reform proposals. · Provide formalization and cadastre services in urban and peri-urban areas through a national strategy and municipal strengthening. This component will promote administrative simplification to recognize and protect property rights by providing technical assistance to the Commission for the Formalization of Informal Property. · Establish a modern real property registry system based on reliable information and demarcation systems. This component will finance investments in computerized systems for the registry system, as well as training of the staff and users of the National Integrated Cadastre System. · Support investment and credit promotion initiatives to empower the poor and facilitate the use of their real property rights in a formal economy. This component will support the economic utilization of formal property rights and foster real property-related economic activity by financing technical assistance, seminars, workshops, communications and educational tools, and software development. This project builds on the achievements of the $38 million Urban Property Rights Project, which closed in June 2004. It supported the Government of Peru’s implementation of major property rights reforms between 1998 and 2004, which generated impressive results: (i) around 1.135 million property titles were recorded, which benefited more than 5.7 million Peruvians in marginal communities; (ii) about 630,000 of these properties were later transferred through market transactions; (iii) titled property values increased by an aggregate of $1.05 billion; and (iv) formal credit was leveraged by about $400 million. ### For more information on the Real Property Rights Consolidation Project, please visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P078894 For more information on the World Bank and Peru, please visit: www.worldbank.org/pe |
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