Announcement of Papua New Guinea to Rehabilitate Roads with World Bank Loan on April 21, 1983

,. FOR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 83/69 Contact: Sundaram Sankaran April 21, 1983 (202) 477-3653 PAPUA NEW GUINEA TO REHABILITATE ROADS WITH WORLD BANK LOAN Papua New Guinea has launched a project to rehabilitate and improve its roads and bridges, the World Bank announced today. The project, which will cost $55.5 million, will receive a loan of $31 million from the International Bank for Reconstruction and Development (IBRD). About 15 high-priority provincial road sections, totalling about 277 kilometers, will be rehabilitated or improved. Rendered impassable during the rainy season, these gravel or earth roads will be raised to an all-weather standard. About 32 deteriorated, temporary or unsafe bridges on national roads will also be rehabilitated or replaced. The project will also improve three sections of the Highlands and Enga Highways, totalling 54 kilometers. • Consultants will be hired to undertake feasibility studies and provide construction and engineering work supervision to prepare for future projects; to review the country's transportation systems; and to provide technical assistance to help improve maintenance operations and rationalize plannin A training component would help reduce dependence on expatriate manpm,r r and improve the capability of national staff. Aside from World Bank financing, the project is expected to receive a loan of $7 million from the Kuwait Fund. The balance of the cost will be funded by the government. Pc:.)Ua New Guinea has so far received 10 IBRD loans and 13 credits from the International Development Association (IDA), the World Bank's affiliate for concessionary lending, with a total of $213.9 million. The primary purpose of World Bank lending in the transport sector is to support agricultural development, for which the physical integration of the country is essential. The IBRD loan is for 17 years, including four years of grace, at an annual rate linked to the cost of Bank borrowings. The loan also carries an annual commitment charge of 0.75% on undisbursed balances and a front-end fee of 0.75% on the amount of the loan. • NOTE: Money figures are expressed in U.S. dollar equivalents •