[September 05, 2008]

WORLD BANK GROUP: Costa Rica-World Bank: New Partnership Includes US$258 Million

(M2 PressWIRE Via Acquire Media NewsEdge)
RDATE:04092008

WASHINGTON -- The World Bank Board of Directors endorsed today the new
Country Partnership Strategy (CPS) for Costa Rica, which envisages a
lending program of up to US$258 million between August 2008 and
December 2010.

The new partnership is based on a streamlined lending program for
priority areas such as secondary education, prevention of catastrophic
risks, telecommunications reform, and the comprehensive development of
infrastructure in the country.

Additionally, the partnership includes an expanded program of analytic
and advisory activities carefully tailored to country demands and that
would respond in real time to emerging demands.

"The new partnership strategy for Costa Rica will support key areas of
development for the country including competitiveness, disaster
management and secondary education." said Laura Frigenti, World Bank
Country Director for Central America. "The strategy includes a
combination of traditional and innovative financial instruments,
technical assistance and fee for services." she added.

This will be accomplished by supporting the following operations:

* A catastrophic risk deferred draw-down operation (US$65 million),
which will provide Costa Rica a quick source of funds in the event of a
major natural disaster, thus allowing a real time response to address
emergency needs.

* A telecommunications reform project (US$13 million) intended to bring
global experience to modernize the telecommunications sector.

* A secondary education and skills development project (US$80 million),
complementing ongoing efforts by the Education Quality and Efficiency
Project, which is improving the relevance of secondary education to
labor market demands. This will be accomplished through a revamping of
the curriculum, pedagogical methods, teacher training and updated
equipment and technology.

* Puntarenas integrated infrastructure development project (US$100
million) to be designed after the Puerto Limon operation approved in
2008. The project seeks to transform the Puntarenas area (including the
nearby Caldera port) into a regional center of economic growth by
revitalizing the port and urban environment, leveraging the interface
and synergies between the port and the city, and increasing economic
opportunities for the poorest households in this area.

* Technical assistance particularly in the poorest areas, with the
objective of focalizing social assistance, competitiveness, domestic

debt market development, pension's assets management, and consolidation
of health system reform.

In addition, the World Bank will support Costa Rica's efforts to reduce
greenhouse gas emissions through support from the Forest Carbon
Partnership Facility (FCPC) to help design positive incentives for
emissions reduction. This will build on the ongoing dialogue in the
context of the payment for environmental services initiative.

As part of the new partnership strategy, the private sector arm of the
World Bank Group, the International Finance Corporation (IFC), will
continue working in the financial, infrastructure, health, education
and agribusiness sectors.

The strategy is the result of a series of consultations with
representatives of the Costa Rican government, civil society
organizations, academic institutions, and political parties.

The period covered by this CPS includes the remaining term of the
administration of President Oscar Arias plus an additional period of
seven months to prepare the succession of this strategy with the new
government in 2010.

For more information on the World Bank's work in Costa Rica, please
visit:

http://www.worldbank.org/costarica

CONTACT: Alejandro Cedeno, Washington, World Bank Group
Tel:+1 202 473 3477
e-mail: acedeno@worldbank.org

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