Announcement of Highway Maintenance Project in Djibouti to Use Six Million Four Hundred Thousand US Dollars IDA Credit on December 2, 1982

FOR IMMEOIA TE RELEASE .world Bank U I 1818 H Street, N.W., Washington, D.C. 20433/U.5.A. • Telephone: (202) 477-1234 IDA RELEASE NO. 83/24 Contact: Pushpa Schwartz Decem~e,r 2, 1982 (202) 477-5306 HIGHWAY MAINTENANCE PROJECT IN DJIBOUTI TO USE $6.4 MILLION IDA CREDIT Djibouti will use an SOR 5.7 million ($6.4 million) credit from the International Development/~. Association ( IDA) for a three-year road improvement and maintenance program. This first operation in Djibouti's transport sector to be supported by the World Bank's affiliate for concessional lending will facilitate access to the. hinterland and reduce transportation costs. The country's road network comprises about 2,800 kilometers, of which '300 kilometers are paved and 2,500 kilometers are earth roads and tracks. The Republic of Djibouti has recently issued a decree classifying the network and identifying a National Road Network of about 1,100 kilometers of priority roads for improvement and maintenance. • The project's three-year maintenance program includes resurfacing a 25ckilometer section of the Djibouti-Ethiopia border road, patching and resealing the country's 300 kilometers of paved roads, and .spot improvements on about 800 kilometers of priority earth roads and tracks. Equipment and supplies for these works will be provided under the project. To improve equipment maintenance facili.t1es for the Public Works DepartQ1ent, a new workshop will be built in Djibouti City. A service station will be·: expanded in Tadjourah, along the eastern coast, enabling it to repair road equipment~ Technical assistance comprising consulting services to strengthen road organization and to undertake engineering studies will be provided. The credit also includes fellowships for eight instructors who will train equipment operators and road technicians. IDA's first credit of $3 million in April 1982 is financing technical assistance to Djibouti's Directorates of Planning and Statistics. A fund co- financed with the United Nations Development Programme is being used for studies needed to draw up a development strategy. The project manager and technical assistance team are now in the country. The $6.4 million IDA credit is for 50 years, including IO years of grace; it carries no interest but bears an annual service charge (0.5% on the undisbursed balances of the credit and 0.75% on the disbursed balances). • I,) .NOTE: j) 1! IDA credits are denominated in SDRs {Special Drawing Rights), which are valued ,on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit refrects the exchange rates existing at the time of negotiation of the credit.