Announcement of IDA Assists Road Maintenance Project in Sri Lanka on May 3, 1979

~OR IM~EDJATE RELEAS~ ~ .World Bank 18: 8 H 5ticct, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/66 MAY 3, 1979 IDA ASSISTS ROAD MAINTENANCE PROJECT IN SRI LANKA The International Development Association (IDA), an affi1 iate of the World Bank, today announced the approval of a credit of $16.5 mil- lion to help finance a project designed to improve the road network in Sri Lanka. Among the countries in South Asia, Sri Lanka has a relatively extensive and well-developed road network. The system maintained by the Government's Department of Highways totals about 15,000 miles, of which 11,000 miles are paved. In addition, there are about 10,000 miles of tea • estate and irrigation roads. lack of maintenance. The entire road network is suffering from The project being assisted by the IDA credit aims to improve the road system by a program of enhanced maintenance and thereby reduce transport costs. The project is scheduled to be completed in 1984 at a total estimated cost of $28.75 million. The IDA credit to Sri Lanka is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% per annum to meet IDA's administrative costs. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM 1\10. 1121 (5-76) T E CHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Road Maintenance Sri Lanka $28.75 million • IDA FINANCING: $16.5 million, standard IDA terms OTHER FINANCING: Government of Sri Lanka IMPLEMENTING ORGANIZATION: Department of Highways Government of Sri Lanka P.O. Box 1720 Colombo 1, Sri Lanka. PROJECT DESCRIPTION: It will provide for rehabilitation and limited improve- ment of 112 mites of road; resealing or resurfacing of about 150 additional miies; strengthening, repair or replacement of 30 bridges and pro- • curement of road maintenance and workshop equipment. It will also strengthen the road maintenance services of the Department of Highways and lay the foundation for improved routine and periodic maintenance. PROCUREMENT: Equipment, materials and supplies will be procured on the basis of International Competitive Bidding (ICB) with a 15% preference allowed on locally manufactured items. Contracts for construc- tion or rehabilitation will be awarded on the basis of ICB with a 7-1/2% preference allowed to local contractors. ECONOMIC RATE OF RETURN: 36% ESTIMATED COMPLETION DATE: 1984 - 0 - •