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Mexico

WB: US$491 million for an influenza prevention and control project in Mexico

More than 10 million Mexicans will be vaccinated against the H1N1 virus

Press Release No:2010/165/LAC

WASHINGTON, DC, November 24, 2009 - The World Bank (WB) Board of Executive Directors approved today a $US491 million loan for influenza virus prevention and control in Mexico. The loan seeks to improve the Mexican health care system's ability to monitor the propagation of the different influenza viruses and control epidemic waves.

The capacity to monitor the propagation of these viruses depends on the robustness of the National Epidemiological Surveillance System (SINAVE). To improve said capacity an information technology system needs to be developed, upgrade Mexico's national reference laboratory, training staff and strengthening data analysis, research and evidence-based public health decision making.

Success to control epidemic waves depends on antiviral medicines and vaccines strategic reserves among so as the infrastructure and logistics necessary to distribute them.

"The A/H1N1 virus epidemic and the economic downturn threaten human development and governmental efforts made to improve the health care system. This loan seeks to contribute to monitor the spread of influenza viruses, mitigate second epidemic waves and specifically, strengthen the Mexican health system so it may better control other infectious diseases," said Gloria Grandolini, World Bank Director for Mexico and Colombia.

Some of the goals of this project include:

- Improved performance of the SINAVE;

- Vaccination of more than 10 million Mexicans against influenza A/H1N1;

- 2.15 million anti-viral treatments stockpiled in the country's strategic reserves;

- Establish the central epidemiological analysis unit;

- Establish state epidemiological offices, completely equipped and connected to the new information technology platform;

This loan would reimburse the Mexican Government expenditures incurred during the first wave of influenza A/H1N1 that meet the eligibility criteria under the aforementioned goals. These expenditures include the purchase of medicine, vaccines, medical supplies, laboratory equipment and reagents purchased on or after April 23, 2009. The amount reimbursed shall not exceed 40% of the total amount of the loan.

On April 26, 2009, the WB granted its first loan in response to the A/H1N1 epidemic in Mexico. The government requested financial support to help close the gap between the cost of controlling the first wave and preparing for a second wave of A/H1N1. Mexico also benefited from a $1.7 million grant from the Avian and Human Influenza Facility, which is a multidonor mechanism that has received contributions from nine donors led by the European Commission.

The loan has been processed as an emergency recovery loan under a rapid response to crisis. It was conceived after consulting with the World Health Organization and will include the support of the Center for Disease Control of the United States and Canada's Public Health Agency for its implementation.

The total amount of the project is US$538.8 million of which the World Bank will cover US$491 million and the Mexican government US$47.8 million. The Secretary of Health has been designated as the entity to implement the project. The Development Banking Institution Nacional Financiera - Nafin will act as financial agent.

It is a variable-spread loan (6 month LIBOR), to be paid in 18 years. A 0.25% Font end Fee (disbursement fee) has been agreed. The project is expected to be completed by December 31st 2011 and will be supported by a wide array of technical assistance support.

Since 2005 the WB has been supporting prevention of, and response to, avian and human influenza in 60 countries. With the approval of the Mexico loan announced today, total World Bank financing for these programs amounts to $841 million.

Contacts:

In Washington: Gabriela Aguilar
(202) 473 6768
gaguilar2@worldbank.org

In Mexico: Fernanda Zavaleta
(52-55) 54804200
fzavaleta@worldbank.org