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Washington, D.C., July 1, 2003—
The International Finance Corporation (IFC), the private sector arm of the World Bank Group, will lend US$18 million to the toll road concessionaire Norvial S.A., that will support the improvement of Peru's road network.
In 2002, the government of Peru awarded Norvial S.A. a 25 year concession to operate, rehabilitate and expand a 183-km section (Ancon – Huacho - Pativilca) of the Panamericana North Highway. The investments required under the concession include rehabilitating portions of the toll road and building two bypasses (Huacho – Primavera and Ambar – Pativilca) in order to reduce transportation costs and improve safety.
Francisco Tourreilles, IFC's Director of the Infrastructure Department, said: "This investment supports the government of Peru’s first toll road concession, out of a program that includes a total of eleven concessions involving private sector participation in the operation and expansion of the country’s road infrastructure. The improved road network will reduce the cost of bringing goods to the local and international markets, thus increasing the competitiveness of the Peruvian economy.
"Bernard Pasquier, IFC's Director of the Latin America and Caribbean Department, noted: "This investment fits with IFC’s strategy to support infrastructure development as a means to improve the efficiency of the transport sector. This financing shows IFC's commitment to a broad spectrum of private sector initiatives in Latin America."
Norvial S.A. is owned by Grana y Montero S.A.A., JJC Contratistas Generales S.A. and Besco S.A., a fully owned subsidiary of Besalco S.A.
IFC's committed portfolio in Peru stood at $216 million of own funds as of end-April 2003. Participants banks' commitments totaled $73 million. IFC's strategy in the Peru has been focused in supporting the development of a strong private sector, while enhancing competitiveness and employment creation. Areas of investment include the financial sector and infrastructure, as well as the promotion of direct investment in sectors such as manufacturing, telecom, tourism, agribusiness, and natural resources with special attention to commercially oriented environmental projects.
IFC's mission (
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY02, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.
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