Urban Development and Sanitation


                                     BOLIVIA



SECTOR:                 Sanitation

PROJECT NAME:           Global Credit Program for Urban Development and
                        Sanitation (PRODURSA II)
                        (777/OC-BO; 914/SF-BO)

TOTAL COST:             $80.0 million

FINANCING:
      IDB               $64.0 million
    LOCAL               $16.0 million

DATE OF APPROVAL:       October 27, 1993

GENERAL DESCRIPTION:    The objective of this project is to support municipal and
                        regional development in Bolivia by consolidating the
                        national mechanism for financing urban projects and con-
                        tributing to the improvement of the local government's
                        capital base and management capacity.  Specifically, the
                        operation is designed to:  (a) improve physical infra-
                        structure and increase the coverage of services in the
                        country's urban centers; (b) strengthen the financial and
                        management capacity of the municipalities and local pub-
                        lic service entities; and (c) strengthen and consolidate
                        the institutional and financial intermediation mechanisms
                        to facilitate the decentralization of government.  

                        This project, which is the second part of a program
                        started in 1990, includes two components:  (a) a credit
                        line for execution of basic sanitation, infrastructure
                        and urban public service projects submitted by municip-
                        alities, regional development corporations, and public
                        service entities; and (b) institutional strengthening of
                        the central program's executing agency (the National
                        Regional Development Fund - FNDR), the regional financial
                        credit units, and the local governments and public
                        service entities responsible for the execution of the
                        projects. The subloans that will be granted with the
                        funds from this project will be used for projects in
                        the following sectors or for works and services of the
                        types noted: basic sanitation (water supply and sewerage);
                        channeling and drainage; solid waste; urban roads; surface
                        transportation terminals; public lighting; public markets;
                        slaughterhouses; electric energy; property records; and
                        preinvestment studies.

CIVIL WORKS:            Civil works will be financed through subloans.  The FNDR
                        will hire specialized agencies for the implementation and
                        administration of the prequalification and bidding for
                        construction contractors under the program.

CONSULTANTS:            Consulting services will be contracted for the following
                        activities:  (a) financial and commercial area: financial
                        and accounting systems, billing and collection systems,
                        control practices and property registration budget; 
                        (b) operational area: inventories of service networks,
                        operating and maintenance practices; and (c) organiza-
                        tional aspects and external contracting of operation and
                        maintenance services.  In addition, the strengthening of
                        the public service companies will also be carried out by
                        consultants.

GOODS AND EQUIPMENT:    The suppliers of goods and equipment will be registered
                        with the FNDR and eventually invited to submit bids for
                        supply of specific items, which will be identified during
                        the execution of the program.

EXECUTING AGENCY:       National Regional Development Fund [Fondo Nacional de
                        Desarrollo Regional] (FNDR)

ADDRESS:                Edificio FONCOMIN, Piso 8
                        Avenida 20 de Octubre No. 2038, Casilla No. 12613
                        La Paz, Bolivia
                        Telephones: (591-2) 378-942/3/5/6
                        Fax:        (591-2) 392-123
                        Telex:      3247
                        Contact:    Sr. Arturo Castaño, Director