Announcement of World Bank Supports Argentina's Road Maintenance and Rehabilitation Program on June 4, 1993

FOR IMMEDIATE RELEASE WorId Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 93/100LAC Contact: Ciro Gamarra (202) 473-8721 WORLD BANK SUPPORTS ARGENTINA'S ROAD MAINTENANCE AND REHABILITATION PROGRAM Washington, D.C., June 4, 1993 -- A four-year road maintenance and rehabilitation program in Argentina will be supported by a $340 million World Bank loan. The project will cover the National Highway Directorate (DNV)'s maintenance program and road reconstruction needs for mid-1993 to mid-1997. The $756 million project also includes emergency works to repair damage to national roads caused by the recent floods in early 1992. In addition, it will provide technical assistance to study alternative options of a proposed transport link between Argentina and Uruguay. The road maintenance and rehabilitation sector project will support government efforts to decentralize implementation of public sector investments, ensure adequate maintenance and rehabilitation of the national road network, and strengthen DNV's capacity to supervise road maintenance executed by concessionaires. Argentina's road network consists of about 38,000 km of national roads and 178,700 km of provincial roads. The project will also support the preparation of a manual on environmental assessment of road projects to be systematically used in DNV and disseminated to provincial highway directorates. In addition, it will also provide for acquisition of office, communication, and specialized equipment for traffic counting, vehicle weight control and rating road and bridge conditions. Avoidance of major road reconstruction costs and cost savings to road users will be the major quantifiable benefits. Significant benefits will also derive from the institutional reform program and from the long-term effects of better environmental assessment of road networks. The Government of Argentina will provide $416 million to cover the balance of project cost. The World Bank loan will be disbursed over six years. The $340 million World Bank loan to the Argentine Republic is for 15 years, including five years of grace, with a variable interest rate, currently 7.43 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balances. Noe: Moey figures are expressed in U.S. dollar equivalents.