The additional financing will help consolidate the project and expand its activities in the Cauca Valley Department. The latter is now included in the departments contemplated in the initial financing: Antioquia, Bolivar, Cauca, Cesar, Nariño, Norte Santander, Santander and Sucre.

The consolidation of the project’s activities will help improve quality of life in vulnerable communities and will help the social and economic reintegration of families affected by the internal conflict.

“With this additional financing we reiterate our commitment to these communities and our firm conviction to continue to support the government in building the peace foundations in the country,” said Eduardo Somensatto, World Bank Representative in Colombia.

The loan will provide additional benefits for hundreds of families in the participating departments. Apart from the additional productive, cultural and economic contributions, the project will include institutional and organizational strengthening, as well as generating capacities for designing, implementing and monitoring initiatives for peace and development, thus contributing to increasing human, physical and social capital in the communities.

The project has three components:

• Preventing displacement;
• Generating the appropriate conditions for sustainable returns or relocations;
• Strengthening the National System of Comprehensive Assistance for the Displaced Population

“The Peace and Development Program promoted by Social Action has been working on constructing a country with opportunities for everyone, dignified living conditions and peaceful coexistence. For more than ten years, the Colombian society, supported by technical and financial aid from the World Bank, has identified and activated more than 600 projects aimed at generating economic, social, cultural and environmental assets throughout different territories in the country. It has also generated knowledge and important lessons in promoting regional initiatives in peace development,” declared Sandra Alzate, Director in Charge of the Presidential Agenda for Social Action and International Cooperation.

This financing is a key component in the government’s strategy, as it will complement and strengthen various existing programs. It will also help unify civil society, public and private sectors and donors in their different approaches to peace and development strategies in Colombia.

The project seeks to support government policies to minimize displacements and assist the displaced population through specific interventions in regional developments to reduce vulnerability to violence and thus prevent displacements, support the return of families to their communities or their relocation, and encourage the consolidation of democratic governments in the regions.

The total amount of additional finance required is US$14.879 million, of which the World Bank will contribute with US$7.812 million and the Colombian government with US$7.067 million.

The responsible agency for executing the World Bank’s resources is the Presidential Agency for Social Action and International Cooperation. It is a fixed spread loan to be paid in 15 years with a 10 year grace period, with a front end fee of 0.25% of the total amount. The project is expected to be completed by September 15, 2012.