Announcement of Benin’s Third Highway Receives Ten Million Dollars on November 10, 1977

eWorldBank 18'18 H Street, N. W., VVashington. D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/16 NOVEMBER 10, 1577 BENIN'S THIRD HIGHWAY RECEIVES $10 MILLION The International Development Association (IDA) has approved a $10 mil 1 ion credit to Benin's Third Highway Project. Benin, one of the world's 29 least developed countries, is an overwhelmingly rural nation: about 70% of the population is dependent on agriculture which accounts for 30% of GDP and 90% of foreign exchange earnings. Transport and commerce are the second most important activities in Benin. The port of Cotonou has traditionally been the door to the sea for landlocked Niger and a transit port for the western part of Nigeria. Due to the recent congestion of the port of Lagos, the transit function of the Cotonou port has further developed. Transport and commerce generate about one-third of Benin's GDP, account for 10% of its foreign exchange earnings, and employ about 12,000 persons. The Third Highway Project wi 11 faci 1 itate access to the port of Cotonou by • providing.for the rehabilitation of a 107 km section of the country's main north- south road axis. The project will also expand the highway maintenance program begun under the two previous highway projects, including the elimination of the backlog of bituminous and laterite roads resurfacing. It will provide technical assistance for highway maintenance and for str~ngthening the country 1 s transport planning and coordination capacity. Finally, it will include some pre-investment studies. The major beneficiaries of vehicle operating cost reductions wil 1 be the local truck owners and operators, but cost reductions are expected to be passed on to farmers in the form of higher farmgate prices. About 300,000 people 1 ive in the area influenced by the main road and more than one mill ion in the areas served by the other project roads. The technical assistance aspects of the project wi 11 also contribute to the institution building effort in sectoral management which was initiated under the First Highway Project. The aim is to develop the capacity of the Directorate of Roads and Bridges (DRB) in the Ministry of Equipment and the Directorate of Studies and p·1anning (DSP) in the Ministry of Transport to plan and carry out highway maintenance programs, to evaluate and coordinate transport investment proposa.ls and to formulate sound policies. The $10 mi 11 ion IDA credit to Benin wi 11 be for a SO-year term, including 10 years of grace. It will be interest free but will carry a service charge of 3/4 of 1% to cover IDA's administrative costs • • NOTE: Money figures are expressed in US dollar equivalents. FOAM NO. 1121 (5-76) T E C HN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Third Highway Benin $21 . 3 mi 11 ion • I DA FI NANC I NG: $10 million, standard IDA terms OTHER FINANCING: Kuwait Fund, $7 million The OPEC Fund, $1.6 mill ion Government of Benin, $2.7 mill ion IMPLEMENTING ORGANIZATION: Direction des Routes et Ponts, Ministere de l 'Equipement, B.P. 351, Republique Populaire du Benin. PROJECT DESCRIPTION: The project will comprise: rehabilitation of the Godomey- Bohicon-Abomey road (107 kilometers--km), including detailed engineering and supervision of construction; resurfacing of about 195 km of bituminous roads, resurfacing of about 273 km of laterite roads; strengthening of the ongoing • routine maintenance program through the purchase of equipment and spare parts; technical assistance and fellowships to the DRB in the Ministry of Equipment for the preparation of the maintenance elements of the project, for staff training and strengthening of road maintenance planning, and for assistance to the Directorate of Studies and Planning (DSP) in the Ministry of Transport; and preinvestment study of the Ouidah-Allada road (40 km). PROCUREMENT: The application of a single or double surface treatment on about 195 km of road ($3.9 mill ion) will be executed by contractors selected on the basis of international competitive bidding in accordance with IDA guidelines. The bulk of equipment and spare parts for the resurfacing ·brigades and workshops (about $2.4 mill ion) wi 11 also be procured through interna- tional competitive bidding and in accordance with IDA guidelines. CONSULTANTS: Consultants for the technical assistance program and for the preinvestment studies will be selected following IDA guidelines. The billing rate for consultant services is estimated to average $6,500 per field man-month including salaries, overheads and fees. Reimbursable expenses payable to consultants are estimated to average $2,500 per field ~an-month. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 75% June 30, 1980 • - 0 -