Global Multisectoral Credit Program II

                                    BOLIVIA


SECTOR:                    Multisectoral

NAME OF PROJECT:           Global Multisectoral Credit Program II
                           (939/SF-BO)

TOTAL COST:                $125 million

FINANCING:
      IDB                  $100 million
      LOCAL                $ 25 million

DATE OF APPROVAL:          December 21, 1994

GENERAL DESCRIPTION:       The basic purpose of the program is to provide
                           medium- and long-term financing for economically and
                           financially viable investment projects in the
                           private sector by means of a competitive market
                           pricing mechanism (the credit auction).  The program
                           will ultimately be administered by a new second-tier
                           development bank.

                           Credit resources may also be utilized to finance
                           prefeasibility and feasibility studies to support
                           sub-loan requests, as well as environmental impact
                           studies, in accordance with the environmental
                           monitoring system currently in place.

CONSULTANTS:               Consulting services will be required for:  (a)
                           information system upgrades and technical support
                           for applications software, including updates,
                           consultations, periodic reviews, systems audits,
                           communications, software and database tuning; (b)
                           formal and on-the-job courses which will provide
                           practical training in working with charts of
                           accounts, the analysis and evaluation of
                           intermediary credit institutions (ICIs), use of
                           manuals, management courses, treatment of nonbank
                           financial institutions, and new financial
                           instruments; (c) conceptual and managerial, 
                           procedural and operational system follow-up advisory
                           services for ESP senior management; and (d) the
                           development of an overall marketing strategy to
                           create an image for ESP, estimate, project, and
                           monitor the financial system's actual capacity to
                           absorb resources, and conduct a study on utilizing
                           new types of ICIs and new financial products.

GOODS AND EQUIPMENT:       The following equipment will be required:  (a)
                           information system upgrade materials and software,
                           including a Novell communication system; (b) back-up
                           computer hardware; and (c) training materials for
                           on-the-job courses.

EXECUTING AGENCY:          Gerencia de Desarrollo of the Central Bank of
                           Bolivia (BCB)
                           Calle Ayacucho Esquina Mercado
                           PO Box 3118
                           La Paz, Bolivia
                           Telephone:  (591-2) 374-151