Announcement of Tanzania Receives Twenty Million Five Hundred Thousand Dollars IDA Credit for Highway Project on January 18, 1979

. . . . IMMEDIATE RELEASE FOR . " World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/41 January 18, 1979 TANZANIA RECEIVES $20.5 MILLION IDA CREDIT FOR HIGHWAY PROJECT The International Development Association (IDA), the soft-loan affiliate of the World Bank, has approved a $20.5 million credit for a project to assist Tanzania with the second stage of its trunk roads' maintenance program. The Fifth Highway Project will cover maintenance and rehabilitation of 2,700 kilometers (km) of trunk roads in 11 regions in the northern and western parts of Tanzania. ft will also provide technical assistance to increase the long-term road maintenance capability in the country. Under the first stage of Tanzania's trunk roads' maintenance program, supported by a previous IDA credit in August 1974, 3,300 km of roads in the southern and eastern parts of the country are being rehabilitated and maintained, and a start has been made to • develop an adequate road maintenance organization . The present project encompasses an area of 500,000 square km, with a population of 8 million, and a marketed agricultural production of a million tons a year, about 60% of the national total. The roads included in the project have been identified as crucial transport arteries in the areas served and are in a condition that warrants urgent routine or periodic maintenance. The project will finance road maintenance, rehabilitation and zonal workshop equip- ment and materials, training aids for the Morogoro Training School, and the construction of about 28 base and road camps as well as a small number of houses for technical experts. A pilot program will be undertaken for the repair and rehabilit~tion of road maintenance equipment used for secondary roads in the Mwanza region and Zanzibar. An important feature of the project is the provision of technical assistance to the Ministry of Works to develop on-the-job and formal training for engineers, including overseas training, in order to improve Tanzania's long-term road maintenance capability. The road maintenance and rehabilitation carried out under this project is expected to reduce vehicle operating costs, with savings accruing directly to public and private transport operators and eventually to transport users, mainly farmers and bus passengers, through reduced rates and fares. In addition, transport will be faster and more reliable and comfortable. The IDA credit to Tanzania is for 50 years with a grace period of 10 years. It is interest free, except for a service charge of 3/4 of 1% per year to meet IDA's administrative expenses . • NOTE: Mo~ey figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHNI CAL D A T A PROJECT: Fifth Highway Project COUNTRY: United Republic of Tanzania TOTAL COST: $25.71 million IDA FINANCING: $20.50 million, standard IDA terms OTHER FINANCING: Government of Tanzania, $5.21 million IMPLEMENTING ORGANIZATION: Ministry of Works (MOW) P.O. Box 9423 Cable: UJ £NZ I Dar es Salaam, Tanzania PROJECT DESCRIPTION: The project will extend road maintenance and rehabilitation to cover 2,700 kilometers of trunk roads in 11 regions in tMe ncrthern a"d western parts of the country. The Ministry of Works' capability in road maintenance will be increased by providing technical assistance to train engineers and road maintenance personnel. The project will also finance road maintenance, provision of rehabilitation and zonal workshop equipment and materials, training aids for the Morogoro Training School, and housing for technical experts. A pilot program will be carried out for repair and rehabilitation of road maintenance equipment in the Hwanza region and Zanzibar. PROCUREMENT: Contracts for new road maintenance and workshop equipment, related spare parts, vehicles, and road maintenance • materials estimated to cost about $16.5 million will be grouped and procured on the basis of international competitive bidding in accordance with World Bank guidelines. Local manufacturers will be granted a preference margin equal to 15% of the c.i.f. cost of competing imports or the customs duty, whichever is lower. The remaining goods wi 11 involve minor individual purchases for specialized items and they will not attract international competition: training aids (about $0. 1 million) wi 11 be procured by calling competitive quotations following existing government procedures, and spare parts for the pilot program (about $0.5 million) will be procured through local representatives of equipment suppliers after local competitive bidding. Most of the equipment, spare parts, and tools are expected to be imported, as Tanzania does not manufacture these items. Equipment suppliers will be required to provide an adequate service organization in Tanzania, including training of mechanics, service personnel, and equipment operators, and to maintain a reasonable inventory of spare parts. Civil works contracts for construction of base and road camps (about $3 million), and housing for expatriate advisors (about $0.6 million) will be built by local contractors after local competitive bidding or, with IDA's agreement, by force account. Off-the-shelf items costing under $15,000 each, up to a total of $200,000, may be purchased according to normal government procurement procedures. CONSULTANTS: About 612 man-months of consultant and technical services will be needed for this project. A team of 18 maintenance experts will be employed for two to three years to provide on-the-job training and advice to MOW's staff, regional staff, and field personnei; 24 months of consultant services will be needed for planning; and four instructors will be employed for 18 to • 24 months at the Morogoro Training School to train technicians and field staff . ECONOMIC RATE OF RETURN: 70% ESTIMATED COMPLETION DATE: 1985 - 0 -