Announcement of Ninety Million US Dollars Loan for a Highway Project in Mexico on February 14, 1974

1... ?'i/ JO I• • 1818 H STREET. N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3·6360 Bank Press Release 74/10 Subject: $90.0 million loan for a highway February 14, 1974 project in Mexico The World Bank announced today a $90.0 million loan to help finance con- struction and upgrading of 16 roads in Mexico totaling about 1,165 miles (1,875 km). The project represents about 40% of Mexico's Department of Public Works' federal highway construction program for 1973-76, and will r.equire investments estimated at $241.4 million. The Bank loan will cover foreign exchange costs, and the balance will be financed by the Government out of the budget. In recent decades highways have become Mexico's prime transport mode. The • country's networ.k of paved road has risen from about 620 miles (1,000 km) in 1929 to over 28,500 miles (46,000 km) in 1972. Highways have contributed sub- stantially to a more balanced expansion of foreign and domestic trade, and to opening up previously inaccessible areas of the intetior of the country. The main emphasis in the expansion of the highway network has been on the completion of nearly 22,000 miles (35,000 km) of roads to provide connections between Mexico City, state capitals, borders crossings and sea ports. The project being assisted by the Bank loan includes widening from two to four lanes of about 125 miles (201 km) in four major highways; construction of eight new highways linking major cities or important industrial or agt·i- cul tural areas with a total extension of about 643 miler:; (1,035 km); and con- struction of four new roads adding nearly 400 miles ((,39 km) tn 1mprove access to agricultural areas. These highways are widely distributed throughout Mexicoo • Note: Money figures are expressed in US dollar equivalents., /more  •. l Bank P ~R. 74/10 "'i Mexico - 2 - Contracts for all highways included in the project will be awarded on the basfa of international competitive bidding. The loan is being made to Nacional Financiera, SoA., with the guarantee • of the United Mexican States, for a term of 25 years, including five years of grace, with annual interest at 7-1/4%. - 0 - • •  ' . • TECHNICAL DATA PROJECT: Highways COUNTRY: Mexico TOTAL COST: $241.4 million BANK FlliANCING: $90.0 million, 25 years, 5 years of grace, 7-1/4% interest per annum. OTHER FlliANCING: Government budgetary allocations Il1PLEMENTING ORGANIZATION: The Ministry of Public Works through the Directorate of Federal Highways, Mexico D.F., Mexico PROJECT DESCRIPTION: Construction of 16 roads of three types, including: widening from two to four lanes and paving of 125 miles (201km) of four major highways; construction and paving of 643 • miles {1,035 km) of eight new roads linking major cities or important industrial or agricultural areas; and con- struction and paving of about 400 miles (639 km) of four new roads improving access to agricultural areas. PROCUREMENT: Contra.cts for all highways wi 11 be awarded on the bas is of international competitive biddingo Contracts for bridges not included in the highway contracts and for traffic signals and other minor specialized works accounting for about 10% of the project cost will be awarded through competitive bidding after local advertising; this procedure, which will not exclude interested foreign bidders, is being followed because the works are so small that the advantages of international competitive bidding would be outweighed by the administrative burden involvedo COMPLETION DATE: 1976 •