IFC Technical Assistance Facility for Latin America

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Municipal Capacity Building Fiscal benefits from
private investments can make the difference at
the local level Javier Aguilar - ELB Pillar
Manager with Günther Schulz-Heiss, ELB Consultant
IFC Technical Assistance Facility for Latin
America the Caribbean June 19th, 2006
2
The company, the country, the neighborhood
Peru and Cajamarca
Minera Yanacocha and Peru
Department Poverty Rate - 2004
Ancash 55.3
Cusco 59.2
Moquegua 37.2
Piura 60.9
Tacna 26.7
Tumbes 21.6
Cajamarca 74.2
Lima 36.6
National Average 51.6

• Yanacocha is the source of half of all gold mined
  in Peru
• The companys contribution to the countries
  exports reached 25 in 2002
• Total output contributes more than 2 to Perus
  Gross National Product

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Windfall Revenues for Municipal Governments
4
The Use-less Mining Canon
Unspent End-of-year Balance of Mining Canon at
Cajamarca Provincial Govt
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Local Ownership Plus TA Can Unfreeze the Mining
Canon
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Behind the figuresReal changes in peoples
lives
Kindergarten built with Mining Canon Funds in
Tatar Grande Village, District of Los Baños del
Inca, Cajamarca
Farming techniques in rural neighborhoods of Los
Baños del Inca need lots of improvement yet
Mayor Pajares inspecting drainage works financed
with Mining Canon resources in Los Baños del Inca
District
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Sustained Progress only with Sustained Ownership
District Mayor Pajares with advisors from IFCs
LAC Facility