Announcement of World Bank Supports Highway Project in Colombia on June 30, 1977

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/145 JUNE 30, 1977 WORLD BANK SUPPORTS HIGHWAY PROJECT IN COLOMBIA The World Bank will support a major effort to improve road maintenance in Colombia with a new loan of $90 million that will help finance the Seventh Highway Project in that country. The project will have a total cost of $153.75 million and will help Colombia expand output, including exports, by improving the efficiency of the trunk roads which are the backbone of the transport system and the principal link to the country's ports. In addition, the project will support the Colombian Government's efforts to strengthen transport planning and to improve highway maintenance practices. The ~olombian economy has become highly dependent on the availability of roads and their capacity to bring products to ports and imports to their inland destination. In 1974 road traffic accounted for 70% of all interregional and international traffic. The execution of the project will result in an immediate financial benefit for the road transport industry and, also, for the rest of the economy. Additionally, the project~ ~ civil works will help create temporary jobs for up to 3,000 skilled and unskilled workers. The project will provide for the rehabilitation of important sections (about 978 km of paved roads) of the trunk highway network, with traffic in the 1,200 to 6,000 vehicles- per-day range, where the level of deterioration is beyond repair with normal maintenance operation. The project also includes a vehicle weight control program with installation of about 20 stations; a highway maintenance program including acquisition of about 800 units of equipment and spare parts; purchase of vehicles, road marking, laboratory and drilling equipment; and studies for transport sector management. The loan to the Republic of Colombia will have a term of 17 years, including 3! years of grace, and interest at 8.2 percent per annum. The following five financial institutions in Japan and the U.S. are participating in the loan: National Bank of North America, New York; The Bank of Yokohama, Tokyo, Japan; The Daiwa Bank Trust Co., New York; Industrial National Bank of Rhode Island, Providence, Rhode Island; and American National Bank and Trust Co. of Chicago. NOTE: Money figures are expressed in U.S. dollar equivalents • • FORM NO. 1121 (5-76) T- EC H ~IC AL D A A PROJECT: COUNTRY: TOTAL COST: Seventh Highway Colombia $15 3. 75 mi 11 ion • BANK FI NANC I NG : $90 million with a term of 17 years, including 3! years of grace, and interest at 8.2% per annum. OTHER FINANCING: Government of Colombia: $63.75 million IMPLEMENTING ORGANIZATION: Ministerio de Obras Publicas y Transporte (MOPT) Centro Administrativo Nacional Bogota, Colombia PROJECT DESCRIPTION: The project will include: a) a rehabilitation program of about 978 km of paved trunk roads; b) a vehicle weight control program, including installation of about 20 weighing stations; c) a highway maintenance program including acquisition of about 800 units of highway maintenance equipment, spare parts as well as workshop equipment and store extensions; d) logistic support to the project, including the purchase of vehicles, road marking, laboratory 4lt and drilling equipment; and e) technical assistance. · PROCUREMENT: a)Construction contracts for the rehabilitation program will be procured by international competitive bidding in accordance with Bank Guidelines. Individual contracts estimated value will range from $2 to $4 million. Contracts will be grouped for bidding purposes into six time-spaced batches, each contain- ing 4 to 10 lots. The stabilization and drainage works, part of which are already being executed, will be contracted under similar conditions and specifications but in smaller size lots (under $1,100,000 equivalent). b) Contracts for construction and installation of weighing stations, will be procured by international competitive bidding in accordance with Bank guidelines, in 2 or 3 packages of $1.5 to $3 million depending on geographic location. Similarly the weighing equipment would also be procured by international competitive bidding. c) Procurement of spare parts, maintenance equipment and the logistic support items will be carried out by international competitive bidding in accordance with Bank guidelines. Spare parts of specific makes for existing equipment will be procured directly from established dealers in accordance with a purchase program acceptable to the Bank. CONSULTANTS: The technical assistance will be mainly on-the-Job trainin~ for engineers, mechanics, storemen and field personnel. Twelve engineers and thirty specialists will be provided by consultants over two or three years for this purpose. A total of about 230 man-years of professional services wilJ be re~uired for construction supervision and technical assistance. ECONOMIC RATE OF RETURN: The average weighted rate of return for the project as a • whole is estimated at over 90%. ESTIMATED COMPLETION DATE: 1981 - 0 -