Announcement of Four Million Four Hundred Thousand Dollars Credit to Guyana for a Highway Project on April 27, 1972

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 72/30 dubject: $4.4 million credit to Guyana for April 27, 1972 a highway project The International Development Association (IDA), a member of the World Banlc Group, has approved a credit of $4.4 million to Guyana for a highway project which · will improve roads in a densely cultivated and populated coastal region west of Georgetown, the capital of Guyana. The Guyana transport system is concentrated in and along the sugar and rice growj_ng areas of the coastal plain where 90% of the population lives. The 1,000-mile road network carries most of the country's transportation, and road transport is be- coming increasingly important. Banlc Group lending to Guyana supports the Government's aim of developing and expanding the agricultural sector. The proposed project will assist development of the agricultural area west of Georgetown enabling produce to be transported to market centers and the capital at reduced costs. Further investments in the transport sector will be identified under a comprehensive transport plan to be prepared by the trans- ~ port planning unit which has been set up in the Ministry of Fconomic Development (MED). The project consists of improvement of four road sections totaling about 34 miles; supervision and installation of weighbridges; consulting services for supervision of project road improvement works, feasibility studies of about 200 miles of roads, de- tailed engineering of about 100 miles of roads, a management study of the Ministry of Works, Hydraulics and Supply (MWHS), and for technical assistance to the transport planning unit. The project will be implemented over a three-year period under the supervision of the Mw.HS through its Road Division and, for the planning unit, under the MED. The total project cost, including contingencies, is estimated at $8.2 nrl.llion, with a foreign exchange component of $5.6 million, which is expected to be financed by the IDA credit of $4.4 million and a grant of $1.2 million requested from the United Nations Development Programme (UNDP). Road work contracts will be awarded after inter- national competitive bidding following normal Bank Group procedures. The IDA credit to Guyana is repayable in 50 years, with a 10-year grace period and no interest. A service charge of 3/4 of 1% per annum will be n1ade to cover IDA's administrative expenses. • - 0 -  • April 20, 1, 72 TECHNICAL DATA PROJECT: Highways COUNTRY: Guyana TOTAL COST: Estimated at $8.2 million IDA FINANCING: $4.4 million credit, 50 years, 10 years of grace, no interest but 3/ 4 of 1% service charge per annum. OTHER FINANCING: UNDP has been asked to provide a grant of $1. 2 million. The local currency cost amounting to $2.6 million will be provided by the Government. IMPLEMENTING ORGANIZATION: The Ministry of Works, Hydraulics and Supply (~HS) and the Hinistry of Economic Developnent (MED), P,n: Box 542, Georgetown, Guyana will be responsible for the execution of the project. • PROJECT DESCRIPTION: Improvement of four road sections totaling about 34 miles~ supervision and installation of weighbridges~ consulting services for supervision of project road improvement works, feasibility studies of about 200 miles of roads, detailed engineering of about 100 miles of roads, a management study for the MWHS and technical assistance to a transport planning unit in the MED. PROCUREMENT: Civil works and weighbridges procurement contracts will be awarded after international competitive bidding. Consultants will be selected on an international basis. ESTIMATED COMPLETION DATE: End of 1975. • - 0 -