Announcement of Ten Million Five Hundred Thousand Dollars IDA Credit for Malawi Roads on December 23, 1977

-World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS ·RELEASE NO. 76/28 DECEMBER 23, 1977 $10.5 MILLION roA CREDIT FOR MALAWI ROADS The !nternational Development Association (IDA), an affiliate of the World Bank, has approved a $10.5 million credit that will finance the construction and improvement of more than 100 kilometers of roads in Malawi. !he project will assist the Malawi Government in its general stra- tegy to develop the northern part of the country, particularly the Nzimba area, where several rural and industrial development projects have been initiated or planned. The new project consists of the construction of the 85-kilometer road between Kasungu and Jenda to bituminous surfaced standard. Three short sections, totaling 20 kilometers, of the Zomba to Lilongwe road will also be strengthened. Included in the project as well are consulting ser- vices for the supervision of the road works and the feasibility, and pos- sibly engineering studies of the road between Jenda and Mzuzu. • The $10.5 million IOA credit will cover 74% of the total project cost, estimated at $14.3 million. The OPEC Special Fund is also parti- cipating with a credit of $1.8 million~ The remainder of the project cost, about $2.0 million, will be borne by the Government of Malawi. The World Bank has been involved in the transport sector of the Malawi economy since 1966 when the first IOA credit was granted to finance the detailed engineering of the almost 300-kilometer Zomba-Lilongwe road. That road was later paved with the help of an IDA credit of $11.5 million. A second highway project, assisted with a credit of $10 million from IDA, included the construction of the Lilongwe to Kasungu road and a pilot scheme in Kasungu District for the improvement and maintenance of district roads serving rural development. These highway projects, including.the latest one, support the ef- -,forts of the Malawi Government to reduce regional Imbalances in the coun- try by promoting development Jn the northern half of the country. The latest project, for example, will improve part of the main road which links the northern part of the country with the capital, Lilongwe, and with the more developed southern areas. All the roads will facilitate the transport of agricultural produce and access to public services in rural areas. The $10.5 million credit will be on standard IDA terms of 50 years, with 10 years of grace. It is interest free, except for a charge of 3/4 • of 1% for administrative e~penses . ~OTE: Money figures are expressed in U.S. dollar equivalents.  ---·----·- ·---· ---~--·-- -~-- FORM NO. 1121 (5-76) T E CHN I CAL D A TA PROJECT: COUN'TRY: TOTAL COST: Thi rd Highway Malawi •• $14. 3 mi 11 ion I DA FI NANC I NG: $ l O• 5 mi 11 i on OTHER FINANCING: OPEC Special Fund: $1.8 million Government of Malawi: $2.0· mi 11 ion IMPLEMENTING ORGANIZATION: Ministry of Works and Supplies Malawi PROJECT DESCRIPTION: Consists of the construction of the Kasungu-Jenda road · {~5 kilometers) · to two-lane bituminous surfaced standard, and strengthening of three short sections, totalling20 kilometers, of the Zomba-Lilongwe road. It also finances consulting services for the supervision of the constructinn wnrk~, the strengthening of the Zomba-Lilongwe road, and for the feasibility and possibly, . • engineering studies of the Jenda-Mzuzu road. PROCUREMENT: The construction contract for the Kasungu-Jenda road will be awarded on the basis of international competitive bidding in accordance with IDA Guidelines. Bids havebeen received and the award of contract wi l 1 take place shortly. The contract for strengthening the Zomba-Lilongwe road will be advertised internationally, in accordance with IDA competitive bidding procedures. CONSULTANTS: Engineering consultants have been retained for finalization of design, preparation of tender d6cuments, evaluation of tenders and supervision of construction of the Kasungu-Jenda road. Engineering consul- tants will be retained to carry out the feasibility and engineering studies of the Jenda- Mzuzu road (about 110 man-months). ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 14% December 1979. - 0 •