Announcement of Uruguay’s Highways to be Rehabilitated with Help of Forty-Five Million Dollars World Bank Loan on February 17, 1983

eWorldBank 1818 H Street, N.W., Washington, D.C. 2043 3, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 83/45 Contact: Ciro Gamarra February 17, 1983 (202) 477-5320 URUGUAY'S HIGHWAYS TO BE REHABILITATED WITH HELP OF $45 MILLION WORLD BANK LOAN A highway rehabilitation project in Uruguay will be assisted by a $45 million loan from the International Bank for Reconstruction and Develop- ment (IBRD). The project will improve the main export corridors to Argentina and the eastern part of Brazil, thereby reducing transport costs and road maintenance costs. The $137 million Third Highway Project will finance part of the Ministry of Transport and Public Works' Highway Investment Plan for 1983-87 and the National Feeder Road Program.. The project jg based on a study of the road network carried out by consultants under the IBRD-assisted Second Highway Project, begun in 1979. • Sections of roads totaling 115 kilometers will be reconstructed; over 185 kilometers of roads will be rehabilitated and three bridges will be replaced. About 3,000 kilometers of feeder roads will be improved to an all-weather standard. Technical assistance, to be administered by the Ministry of Transport and Public Works, will be provided for an intermodal traffic study and for research work. The National State Railways (AFE) will also receive assistance to establish a cost accounting system. The government of Uruguay will provide $47 million for the $137 million project. Cofinancing funds of $25 million will be used to finance the remainder of the foreign exchange requirements. The Intendencias (regional administrations) will finance $20 million of local ~roject cc J• The first highway loan of $18.5 million to Uruguay was approved by IBRD in 1962. The Second Highway Project, supported by a $26.5 million IBRD loan, is assisting the government in the reconstruction of 146 kilometers of the most heavily travelled portion of Route 8, an important link with Brazil. Construction works are expected to be completed in 1984. The IBRD loan is for 15 years, including three years of grace, at an interest rate linked to the cost of borrowing. 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 equi 'Talents.