WASHINGTON DC, August 5, 2010 — The World Bank Board of Directors approved a US$75 million loan today, the final one in a series of three, aimed at consolidating and deepening the Peruvian government’s policies for sustainable environmental growth and strengthening instutional environmental capacities in key sectors such as mining, fishing and urban transportation, as well as improving the public sector’s capacities and participation.
The series of three budget support operations contributes to: strengthening the Ministry of the Environment’s capacities; the adoption of measures to manage the enviromental legacy of mining; supporting the streamlining of the fishing industry; and supporting the use of cleaner fuels and the control of vehicle emissions, improving air quality and its health effects.
“This loan directly benefits the poorest and more vulnerable population sectors, which are the ones most affected by the bad air quality in cities and by mining liabilities,” said Carlos Felipe Jaramillo, Regional Director for Bolivia, Chile, Ecuador, Peru and Venezuela.
The loan will support the following measures:
- Controlling and monitoring compliance with the environmental regulations implemented by the Ministry of the Environment’s Office of Environmental Evaluation and Oversight (OEFA).
- Public policies to improve the capacity to remedy mining legacies or environmental liabilities (the harmful impact derived from past mining and smelting operations), through the creation of technical directives and indicators.
- Government actions to improve fuel quality through reduced usage of sulfur in diesel. This operation will support government investment plans to modernize Petroperu’s refinery in Talara.
- The enforcement of an effective vehicle inspection and maintenance system in Lima and three additional cities, with concrete measures to reduce corruption.
- The execution of a fishing quota system to prevent the overexploitation of anchovies, as well as the retrofitting of fishers that change their production methods.
The US$ 75 million loan financed by the World Bank has an 18-year maturity period and includes a 17.5-year grace period.