Announcement of World Bank Supports a Highways Project in Ecuador on May 23, 1977

eWorldBank 1818 H Street, N. W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77 /109 May 23, 1977 WORLD BANK SUPPORTS A HIGHWAYS PROJECT IN ECUADOR The World Bank today announced the approval of a $17.5 mill ion loan to help finance a highways project in Ecuador. This project will improve the access of Ecuador's agricultural production to export centers and consumption markets of the country. The Fifth Highways Project to be supported by the World Bank in Ecuador has an estimated total cost of $38. l million. The project will include the con- struction of a four-lane paved highway (25 km.) between Duran and Sol iche~ one of the three major access roads to Guayaquil, the country's larges urban center • and main seaport. The project will also include the construction· of a development road between Puerto Ila and Doblones (29 km.)and about 75 km. of lateral feeder roads that will give access to a large fertile area hitherto largely isolated and un- develcped in the Pichincha and Manabi provinces. This road is expected to produce substantial benefits by providing improved all-weather transport services to those areas already under cultivationj thus facilitating their full development, and by opening new agricultural areas to development. Studies for the preparation of a regional secondary and feeder road program are also included in the project. The $17.5 mill ion Joan to the Republic of Ecuador will have a term of 17 years, including three and a half years of grace, with interest at 8.2% per annum . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T EC HNI CAL DAT A PROJECT: COUNTRY: TOTAL COST: Fifth Highways Ecuador $38.1 million • BANK FINANCING: $ 17. 5 mi 1 1 i on OTHER FINANCING: Government of Ecuador: $20.6 million IMPLEMENTING ORGANIZATION: Dfreccion General de Obras Publicas del Ministerio de Obras Publica.s y Comunicaciones, Ave. 6 de Dfciembre y Wilson> Quito, Ecuador PROJECT DESCRIPTION: a) Civil works and related superv1s1on for the construction of a four-lane paved highway (25 kms) between Duran and Boliche; b) Civil works and related supervision for the construction of a development road between Puerto Ila and Doblones (29 km) and for the construction • and improvement of about 75 km of lateral feeder roads in the area of influence of the Puerto I la-Doblones road; and c) Pre-investment and organizational studies for the preparation of a regional secondary and feeder road program. PROCUREMENT: Road construction and improvement contracts to be awarded on the basis of international competitive bidding, in accordance with the Bank's Guidelines. CONSULTANTS: Internationally recruited consultants to be retained for civil works supervision and to render technical assistance for part (c) of the project. ECONOMIC RATE OF RETURN: 'ESTIMATED COMPLETION DATE: 19% 1980 • - 0 -