Muni San Jose

completed

IFC is considering a US$12 million loan in local currency to the Municipality of San Jose (the “municipality” or “MSJ”) to finance (i) the upgrade of three urban corridors with a total of 2.7 kilometers across the city: Transversal 24, Calle 33 and Calle 78, and (ii) rehabilitation and expansion of the rainwater drainage system of the municipality with a total of approximately 3.8 kilometers in the areas subject to frequent flooding (collectively the “Project”). Component #1 includes street re-paving, expansion of sidewalks, construction of raised pedestrian crosswalks, street lighting, rehabilitation and expansion of sewerage and drainage systems, and installation of underground electrical cables and fiber optics. MSJ hired design engineering firms to prepare full packages of designs, bills of quantities, specifications and conditions of contract for the works to be financed under Component #1. These designs reflect concerns to prioritize multi-modal pedestrian, bicycle and public transit use. Other guiding design principals include road safety considerations, and civic values that promote social interaction, green spaces, and maximize the value of local neighbourhood characteristics. Construction of each of the three urban infrastructure subprojects is expected to take from seven to eight months. San Jose rainwater drainage system is outdated and deficient resulting in frequent flooding during the rainy season in various parts of the city and sediment problems in the network. Component #2 of proposed IFC’s investment will help to mitigate the risks and impacts of flooding by financing improvements to rainwater drainage pipes and intake structures. MSJ plans to develop some of the smaller Component #2 drainage projects with in-house resources while bidding the rest out to private contractors. Construction for each of these drainage works is expected to take two to three months. IFC will accompany the proposed investment by an advisory support program to help implement the project according to international good practice and build the Municipality’s capacity, as well as to help the Municipality to advance new priority investment projects.