During his first official visit as World Bank president to Colombia, Mr. Zoellick met with President Alvaro Uribe and members of his cabinet to discuss the Bank’s new Country Partnership Strategy for Colombia. The two also addressed the global food crisis and President Uribe expressed his support for Mr. Zoellick’s leadership in this area.

“Colombia is a middle income country working hard to achieve a more inclusive and sustainable development”, said Mr. Zoellick. “The economy has been growing steadily and poverty has been falling under the leadership of President Uribe. The challenge ahead is to maintain sustainable economic growth rates and to expand economic and social opportunities to all citizens.”

Colombia was the World Bank Group’s second largest partner in Latin America in 2007, with a portfolio worth more than U.S. $1.2 billion. The new partnership strategy, recently endorsed by the World Bank’s Executive Board of Directors, is focused on improving Colombia’s competitiveness in the global economy and on increasing opportunities for progress for all Colombians.

The new partnership strategy is customized to Colombia’s needs and own development strategy through flexible programming, on-demand advisory services, technical assistance and long-term financing at competitive rates and maturities.

Colombia has been a leader in taking advantage of the updated financial instruments generated by the World Bank under Mr. Zoellick’s leadership to better serve middle-income partners. These changes include: a major reduction of interest rates, extended maturities of up to 30 years, and contingent financing products.

During his visit, Mr. Zoellick also met with the Mayor of Bogota, Samuel Moreno, and his team to discuss the challenges of addressing Bogota’s urban transport needs. The World Bank Group is supporting the Transmilenio system of buses, considered a model in Latin America, which provides safer and quicker commutes for mostly low-income residents and a healthier urban environment. Mr. Zoellick confirmed that the World Bank Group is willing to cooperate in the development of the Bogota Metro system, including through technical assistance and financial support.

Mr. Zoellick discussed with a group of private sector leaders the progress made by Colombia in establishing an improved investment climate. In fact, Colombia was ranked as the top reformer in the region in terms of implementing reforms for business facilitation, according to the World Bank Group’s “Doing Business” report of 2007. In April, the World Bank also approved a US $550 million loan to promote business activity in Colombia and support the reform process to enhance competitiveness. This loan is structured under the new contingent financing facility, allowing the government to draw funds at any time during the next three years.

“Free trade and open markets will be important to Colombia’s efforts to become more competitive and also for its efforts to create a more open society that is both more inclusive and more sustainable,” said Mr. Zoellick.

The head of the World Bank Group learned first hand about the challenges in the education sector, especially higher education. He met the heads of universities, students and Martha Lucia Villegas, president of the loan agency, Instituto Colombiano de Crédito Educativo y Estudios Técnicos en el Exterior (ICETEX). Recently, the World Bank granted a US $300 million loan to ICETEX to provide funding for a loan program for low-income students. This World Bank loan includes extended maturities to match the repayments period of the student loans and provides financing in local currency.

Colombia is addressing its development challenges and the World Bank Group is working with the government on a wide range of issues such as high and sustainable growth, infrastructure, education, health, and social protection as well as peace and development, environmental sustainability and good governance. Under the new partnership strategy, strategic, financial, advisory, and technical support is being provided directly to the government through the International Bank for Reconstruction and Development, the World Bank Group arm for middle-income countries, and to the private sector through the Investment Financial Corporation, the group’s private sector arm.