Announcement of IDA to Assist Urban Development in Mali with Twelve Million Dollars Credit on June 28, 1979

. FOR IMMEDIAT·E.R~LEASE •World Bank 1818 H Street, N.W., Washingtoni D.C. 20433i U.S.A. a Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/107 June 28, 1979 IDA TO ASSIST URBAN DEVELOPMENT IN MALI WITH $12 MILLION CREDIT The International Development Association (IDA), the World Bank's soft- loan affiliate, has approved a $12 million credit to Mali for an urban develop- ment project to provide low-income urban dwellers with shelter, community facilities, and health and sanitation services. In Magnambougou, a squatter neighborhood in the capital city of Bamako, facilities such as water supply, drainage, street lighting, and roads'will be provided. One hundred hectares of new lots adjacent to the project area will be developed, and a minimum lot option plus a loan sufficient for the construction of a two-room adobe house will be made available to selected poor. Twenty-four classrooms and a health center will be constructed to serve about 44,000 people. About 85% of the proposed project beneficiaries have • incomes below the median city level . Vehicles and equipment will be provided for garbage collection, repair and maintenance of drainage ditches, and repair and expansion of the pub1ic standpipe water system. Public lavatories vJi 11 also be constructed. The use of local building materials will be promoted in an effort to alleviate the current housing shortage. Bamako artisans in the project area will benefit from the prov1s1on of retai 1 market faci I iti·es and the extension of credit to aid workshop construc- tion and equipment purchase. It is expected that some 900 jobs will be created as a result of workshop expansion and improvement. Essential services to be provided to other cities include equipment for sewerage and garbage collection in Mopti, and improvements in water supply and distribution in Gao and Kayes. Urban institutions in Bamako will be provided with vehicles and equipment. Advisory services will be provided for project implementation and for studies. Some 44,000 Bamako residents will benefit from the project, of whom 80% in the sites and service area and 60% in the areas to be upgraded are below the poverty level for urban households. The Government of Mali is providing $3.3 million for this $15.3 mill ion project, which is the first urban development project the Bank has funded !n • Mali. The IDA credit is for 50 years, including 10 years of grace. The credit carries no interest, but bears a service charge of 3/4 of 1% per annum to cover administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L DA T A PROJECT: TOTAL COST: Urban Development Repub 1 i c of Ma 1 i $1 5 . 3 mi 11 i on • IDA FINANCING: $12 mill ion, standard IDA terms OTHER FINANCING: Government of Mali, $3.3 mill ion IMPLEMENTING ORGANIZATION: Ministry of Interior Bamako, Ma 1 i PROJECT DESCRIPilON: It consists of: a) providing shelter services and related community facilities in Bamako; b) improving health and sanitary conditions in Bamako (garbage collection, drainage, water supply, and public lavatories); c) providing market facilities and financial assistance to the informal sector, and promoting the use of local building materials; d) providing essential wa- ter and sanitation services to secondary cities (Mopti, Kayes, and Gao); e) improving the urban sector by establishing new institutions and providing outside expertise; and f) conducting an investment programming study for Bamako, and a study to prepare a possible follow-up project. PROCUREMENT: Contracts totalling $4.7 mill ion will be let through international competitive bidding, in accordance with IDA guidelines, for: a) equipment and vehicles for i) improving municipal services in • Bamako ($1.5 million), ii) municipal services in Mopti ($200,000), iii) water supply in Kayes ($100,000), and b) civil works for major contracts for i) on-site infrastruc- ture for Magnambougou sites and services ($1 .4 mill ion), ii) on-site infrastructure for Magnambougou upgrading ($1 million), and iii) off-site water supply for Magnam- bougou ($500,000). A preference margin of 15% or the applicable customs duty, which- ever is lower, will be awarded to domestic bidders offering domestically manufactured goods. Local contractors will be given a preference of 7.5% in the evaluation of tenders for civil works. Contracts totalling $2.5 mill ion for civil works for muni- cipal services, community facilities, and secondary cities' components (less than $400,000 each) will be procured through local competitive bidding. Small items (less than $50~000 each, aggregate $800,000) will be purchased after solicitation of quo- tations from at least three suppliers. Labor for the clearing/repair of drainage ditches and the repair of standpipes will be provided by the district technical ser- vices. CONSULTANTS: Technical assistance will be provided for assistance to the project unit (228 man-months) and for the prepara- tion of studies (85 man-months). ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 22t for quantifiable components 1983 - 0 - •