Structural Reforms and Capitalization
BOLIVIA
SECTOR: Planning & Reform
PROJECT NAME:
(953/SF-BO; 954/SF-BO)
TOTAL COST: $136 million
FINANCING:
IDB $ 70 million (Loan)
IDB $ 12 million (Technical Cooperation)
OTHER $ 52 million (World Bank)
LOCAL $ 2 million
DATE OF APPROVAL: August 2, 1995
GENERAL DESCRIPTION: The objective of this program is to assist the govern-
ment in transforming six state-owned companies into
privately managed enterprises. Under the capitaliza-
tion plan, 50 percent of the state-owned enterprises
will be sold to private investors, while the remaining
50 percent will be distributed to the Bolivian people
through the estabilishment of deferred distribution
accounts, to be managed by private pension funds. The
capital raised from private investors will be used to
increase each company's capital and provide new
liquidity for expansion.
The six state companies that will be capitalized
include the electricity, telecommmunications, hydro-
carbon, airline, railroad and smelting enterprises.
Specific actions to be taken by the government under
the program include: (a) implementing sectoral reform
and the above-mentioned capitalizations; (b) introd-
ucing institutional and legal reforms to strengthen
the country's regulatory and judicial institutions and
establish administrative mechanisms for fair and swift
adjudication of regulatory and commercial disputes;
and (c) implementing financial reforms to develop
long-term financial markets.
The objective of the technical cooperation that
compliments this program is to collaborate with the
government in carrying out the National Universal
Registry (RUN) of Bolivian citizens. This will be
accomplished by: (a) providing all Bolivian citizens
with identification cards; (b) generating a database
containing civil and social information on all
citizens of Bolivia; and (c) establishing a system
to furnish the information and statistics to be
contained in the database.
CONSULTANTS: Consultants would be hired to help the government
carry out the National Universal Registry program.
GOODS AND EQUIPMENT: International competitive bidding will be followed for
purchases of goods exceeding $5 million, according to
the Bank's policy for sector loan procurement. For
the technical cooperation component, IDB funds will be
used to purchase equipment to be used in carrying out
the National Universal Registry program.
EXECUTING AGENCY: For the loan:
Ministerio de Capitalización
Palacio de Comunicaciones
La Paz, Bolivia
Telephone: (591-2) 377-222 or 343-529/20
Fax: (591-2) 377-451
Contact: Alfonso Revollo
Ministro
For the technical cooperation:
Ministerio de Gobierno
Avenida Arce Esq. Belisario Salinas
Casilla 3274
La Paz, Bolivia
Telephone: (591-2) 370-460; 370-463
Fax: (591-2) 371-334; 371-352; 370-463
Contact: Arq. Carlos Coneviva
President
