Announcement of Upper Volta Receives 7.5 Million Dollars for Rural Roads on June 30, 1975

~TERNATIONAL DEVELOPMENT ASSOCIATION '1818 H STREET.NW. WASHiNGTON O C 20,.:133 n::LEPHONE EXF'ClJTIVE' 3-6360 IDA NEWS RELEASE NO. 75/49 JUNE 30, 1975 UPPER VOLTA RECEIVES $7.5 MILLION FOR RURAL ROADS The International Development Association (IDA), an affiliate of the World Bank, today announced the approval of a credit of $7.5 million for a rural roads project. With a per capita income of $70 a year, Upper Volta is one of the 25 "least developed" countries identified by the United Nations. Agriculture and livestock provide a living for over 90% of the population. Agricultural development is, however, limited by three major factors: sparse rainfall, generally poor soils, and the prevalence of 'debilitating diseases, in partic- • ular bilharzia and onchocerciasis (riverblindness). In addition to the constraints imposed by nature, one of the primary factors inhibiting agri- cultural development is the poor condition of rural roads. The project being assisted by the IDA credit is scheduled to be completed in 1979 at a total estimated cost of $8.5 million. It includes a three-year program for improvement and subsequent maintenance of about 1,200 kilometers of rural roads, and maintenance of about 2,100 kilometers of existing rural roads. When completed, the project will help to reduce vehi.cle operating costs, increase agricultural production and marketing. Institution building is of primary importance, and the component included in the project represents a major benefit. The IDA credit to Upper Volta is for a term of 50 years, including 10 years of grace. It is interest-free, except for a service charge of 3/4 of 1% to meet IDA's administrative costs. • Note: Money figures are expressed in US dollar equivalents .  TECHNICAL DATA PROJECT: COUNTRY: Ru.r,al Roads Upper Volta -~ TOTAL COST: $8.5 million IDA FINANCING: $7.5 ~illion, standard IDA terms OTHER FINANCING: The Government of Upper Volta IMPLEMENTING ORGANIZATION: The Directorate of Public Works, Ministry of Public Works, Transport, and Urban Development, Ouagadougou, Upper Volta. PROJECT DESCRIPTION: The project includes: (a) a three-year program for improvement and subsequent.maintenance of about 1,200 kilometers of rural roads, and maintenance of about 2;100 kilometers of existing rural roads; (b). strengthening of Service d'Entretien des Routes Secondaires (SERS) • through technical assistance to Ministry of Public Wo~ks (MPW) for implementation of the above ptogram, and procure.ment of highway equipment; and (c) consulting services for an ~valuation of the impgct and effectiveness of road components included in agri- cultural and rural development projects financed by IDA over the past five years. PROCUREMENT: The project will be executed by SERS' own forces, with support provided by contractors and conununity self-help programs. Equipment, materials, and spare parts and supplies amounting to US$4.l million will be procured on the basis of international competitive bidding in accordance with Bank Group guidelines. CONSULTANTS: Studies will be conducted and executed by consultants selected in agreement with IDA. ECONOMIC RATE OF RETURN: Between 10 and 18% • ESTIMATED COMPLETION DATE: 1979 - 0 -