Aguas del Illimani S.A. Summary Of Project Information (SPI)       Project Name    Bolivia - Aguas del Illimani S.A.            Region    Latin America and the Caribbean        Sector       Project No008738   Projected Board DateOctober 30, 1998   Company NameAguas del Illimani S.A.   Technical Partner and/or Major Shareholders    	The shareholders in the Company include the French company Suez-Lyonnaise des Eaux S.A. (35%), the Argentine companies Sociedad Comercial del Plata S.A. (18%), Meller S.A. (12%) and Inversora en Servicios S.A. (10%) and the Bolivian companies Bicsa S.A. (20%)and Connal S.R.L. (5%).     Project Cost Including proposed IFC investment    	The total project cost is estimated at US$68.2 million.  IFC''s proposed investment includes an A Loan of up to US$15 million and an equity investment of up to US$1 million in the capital of the Company.    Location of project and Description of site    	The project is designed to finance the capital expenditure program for the Company for the period between 1997-2001.  The capital expenditure program will be located in the capital city of La Paz and the neighbouring El Alto area, and comprises (a) an increase in water sourcing capacity, (b) providing 100% water distribution in the La Paz systems (Achachicala and Pampahasi)and almost 100% coverage in the El Alto systems (El Alto and Tilata) through the installation of a minimum of 78,252 water connections, of which 71,752 will be located in the El Alto area, (c) installing a minimum of 38,000 sewerage connections of which 27,000 will be located in the El Alto area, and (d) completing the construction of a 1.5m3/s wastewater treatment plant (the Puchuckollo sewage treatment plant) in El Alto.      Description of Company and Purpose of Project    	The Company operates the water and sewerage systems for the city of La Paz and El Alto.  The Project is part of a longer term program of investments and actions designed to increase the water treatment and distribution capacity as well as the sewage collection capacity of the La Paz and El Alto region under a 30-year concession granted to Aguas del Illimani by the Government of Bolivia pursuant to a Concession Agreement dated July 24, 1997.  The Project is designed to provide 100% potable water coverage to the city of La Paz and close to 100% potable water coverage to the city of El Alto by 2001, in addition to significantly increasing the sewerage coverage in both areas.      IFC''s investment in this project is in line with World Bank Group''s policy of improvement of infrastructure through the facilitation of private sector participation, and will provide an important contribution to the success of the first large-scale water and sewerage services privatization effort in Bolivia.  The Project will also provide substantial health-related benefits through the expansion of potable water and sewerage services to a significant sector of the population, as well as free up public resources for other necessary social investments.    Environmental Category and Issues    	This is an environmental review category B project.  Environmental and social issues include water resource conservation, groundwater management, water quality impacts, disposal of water treatment sludge, soil and water contamination and odor control and worker safety and training.      The sponsor has provided information about how these potential impacts will be addressed.  The construction of additional reservoirs will be restricted to sites adjacent to existing reservoirs to minimize environmental impact.  The sponsor will comply with World Bank Safeguard Policy OP 4.37 if any of the new dams is above a height limit of 15m.  The sponsor will address the active management of the watershed to ensure a high quality for future water resources.  The sponsor will meet applicable World Bank guidelines for liquid effluents arising from the waste water treatment plant.    Actions identified as a result of an environmental audit will be incorporated into a Corrective Action Plan (CAP) which will be completed by ADI prior to first disbursement.  The CAP lists priority actions for the first year, as well as environmental improvements to be initiated during the first 5 years of the Concession. As part of the CAP, the sponsor will detail future land acquisitions, provide copies of Environmental Impact Statements prepared for any Category A capital investment project.  The CAP includes the need to perform technical studies to provide water treatment plant sludge treatment and disposal alternatives as well as the need to evaluate the level of contaminants found within the filter bed medium and provide options for disposal.  Finally the CAP also includes a requirement to develop an Environmental Health and Safety Master Plan, including training of staff, improved health and safety monitoring and completion of additional studies to address fire safety.       Following the implementation of the CAP, the project will comply with applicable local regulations and World Bank policies and guidelines and host country requirements.    The  is  from the InfoShop.       Date SPI sent to InfoShop     September 30, 1998      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384  Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).