Announcement of IDA Approves 7.2 Million Dollars for Rural Development in Benin on May 31, 1977

I . eWorldBank 1818 H Street, N. W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/62 MAY 31, 1977 IDA APPROVES $7.2 MILLION FOR RURAL DEVELOPMENT IN BENIN The International Development Association (IOA), an affiliate of the World Bank, has approved two credits to the People's Republic of Benin totaling $7 .2 mi 11 ion. A credit of $5.5 million is for a feeder roads project which is designed to improve the country's rural road system. The project provides for the establishment of a Feeder Roads Division and of an lnterministerial Consultative Committee. These two organizations are expected to play an important role in the coordination of agricultural and feeder road development in the country. •• The $1 .7 mill ion credit is for technical assistance designed to prepare the ground for a regional development project. This will be pos~ible through the strengthening of ;he accounting and financial ma.nagement, the setting up of an Evaluation and Planning Directorate within the Societe Nationale pour la Production Agricole (SONAGRI) and the reorga~ization of the training capability of SONAGRI and that of the Centre d'Action Regionale pour le Developpement Rural (CARDER). SONAGRI, B.P. 1292 Cotonou, Republique Populaire du Benin, will be the organization for the technical assistance project. The French Fonds d'Aide et de Cooperation (FAC) will participate in the financ- ing of the project with a grant of $0.7 mill ion. B~th IDA credits to Benin are for 50 years, including a 10-year grace period. They are free of interest, except for a servtce charge of 3/4 of 1% to meet IDA's administrative costs • • NOTE: Money figures ara .expres·sed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C H N I C A L DA T A PROJECT: COUNTRY: TOTAL COST: Feeder Roads People's Republic of Benin $6. 1 mi 11 ion • IDA FINANCING: $5.5 million credit, star.dard IDA terms OTHER FINANCING: Government of Benin, $0.6 mfllion IMPLEMENTING ORGANIZATION: Direction de~ Ro~tes et du Pants, Ministere de I 'Equipem~nt, Cotonou, Republique Populaire du Benin. PROJECT DESCRIPTION: The project comprises: (i) improvement and subsequent .maintenance of about 845 km of rural roads, and initial maintenance of 425 k~ improved under the Zou-Borgou Cotton Project; (ii) strengthen- ing of the Directorate of Roads and Bridges (ORB) in the Ministry of Equipment by the creation of a new Division for Feeder Roads; and (iii) technical assistance to • ORB for the implementation of the above program and for the training Qf local staff. PROCUREMENT: Virtually all civil works will be carried out by force account (about $5 million). Equipment, vehicles, materials and supplies amounting to about $3.2 million will be procured on the basis of international competitive bidding in accordance with Bank Group Guidelines. Contracts for equipment, vehicles, materials and supplies costing under $50,000, and for spare parts wilt be awarded on the basis of competitive bidding in accordance with the applicable local procedures. The total amount of such purchases will not exceed $400,000. CONSULTANTS: Total consultants' services will amount to about six man- years of civil engineers/economist and seven man-years of senior techn.i c i ans services at an average cost of $6,200 per man/month. ECONOMIC RATE OF RETURN: 27% ESTIMATED COMPLETION DATE: December 1980 - 0 - •