Announcement of One Million Four Hundred Thousand US Dollars Loan to Costa Rica for Highway Studies on December 21, 1972

() ? INTER·NATIONAL BANK FOR .RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 2043:3' TELEPHONE: EXECUTIVE 3-6360 D Bank Preas Release No. 72/74 Subject: $1..4 million loan to Co£ta llica December 21, 1972 !I for highway studies The World Bank has made a $L4 million loan to Costa Rica to help finance feasibility and detailed engineering studies of two roads serving the country's \\1 capital city of San Jose. The Bank loan will cover 70% of the total co19t of ' the studies project, estimated' at $1.96 million equivalent. ,-, Transport plays an im.portant\~Jole in the Costa Rican economy. A more satisfactory ~ransportation network is required for - . of regional expansion trade, to open new,lands for production, an4, for exports of primllry comnodi- ties and :l':~tlports :of needed machinery, and ,,t'ntermediate goods. Raili·oads have been ·gradually ·replace~ ·by highway:")is,, the main mode ~f internal transportation. At present, the road network -- which needs to be • upgraded and expanded -- carries nearly 85% of all cargo in the countl'1' and accounts for sane 97% of all passenger traffic on its 930 miles of natitonal highways, its 560 miles of regional roads and 16,200 miles of feeder ro~ads. The studies being financed by the Bank loan will concentrate on new or improved roads between San Jose-Siquirres and San Jose-Puerto Viejo, both urgently needed to serve existing and projected traffic. In 1970 the Bank .made a $15. 7 million loan to help finance the road from Siquirres to Puerto Limon, the country's main port, and which extends over about one-third the distance between the port and the capital city. The feasibility study is expected to establish tlie technical and economic \ ' justification of the remaining two-thitrds of the road, which would eventually provide an all-weather connection between San Jose and Puerto Limon. ...... '1'1'.a existing road between San Jose and Siqt1irres is partially paved and in poor condition. The study of the San Jose-Puerto Viejo road is related to that of the San Jose-Siquirres road since they may share a common aligrment over part of their length. The condition of the San Jose-Puerto Viejo road has deteri• orated badly with about half of its 55 ~lea poorly paved and the balance of '··· low standard gravel. The contract for the feasibility study has already been awarded. The Bank loan is being made to the Government of Costa Rica for 10 years, including two years of grace, with interest a t ~ per annum. I~, - 0 -