Announcement of Credit of Nine Million One Hundred Thousand Dollars for Mali Railway on September 28, 1966

. ~ • INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 1nA Press Release No. 66/20 Subject: Credit of $9.1 million September 28, 1966 for Mali Railway The International Development Association (IDA), an affiliate of the World Bank, has approved a credit equivalent to $9.1 million to the Republic of Mali for the rehabilitation and modernization of its railway. The project comple- ments a similar one to be carried out by Senegal with the assistance of an ~A credit of $9 million, also announced today. Mali, a landlocked country in west Africa, has an area of 463,000 square •• mlles, or twice the size of France. The population of about 4\ million is concentrated in the southwest and center of the country, particularly along the Niger River. The Mali Railway connects with the Senegal Railways and to- gether they form Mali's principal route for the transport of imports and ex- ports through the port of Dakar in Senegal. The entire li.ne was operated under single management when Mali (as French Sudan) was part of F'rench West Africa. After independence, the Mali Railway was established in 1960, taking over that pa·rt of the railway located in Mali territory. The Railway extends 400 miles from the Senegal border via Kayes to Bamako, the capital, and thence to Xoulikoro on the Niger River. Between 1960 and 1963, during the rupture of relations between Mali and Senegal, railway traffic was confined to internal transport, and ?hysical facilities, mainly rolling stock, deteriorated. International • uaffic was resumed in 1963 and has since been regulated by a Convention  • - 2 - concluded between the Raillfay authorities of Mali and Senegal, which pro- vides the basis for close and continued cooperation. Decause·of the financial and technical interdependence of the two Railways, this is essential to the suc- cessful execution of the railway projects in both countries. The program being assisted by the IDA credit will equip the Railway with modern traction, rolling stock, repair and maintenance facilities and improved track to enable it to operate efficiently. Included is the purchase of·9 diesel locomotives, 107 freight cars, six passenger cars, and other rolling stock to re- place worn-out or deteriorated equipment and provide enough additional capacity to carry the expected traffic. Track improvements will be undertaken on the sections between Kayes and the Senegal border and between Bamako and Koulikoro. t A workshop will be built so that Mali will have its own equipment for repair and maintenance, except for major overhauls of locomotives for which it will continue to use Senegal's facilities. I Part of the telephone lines along the • Railway will be renewed to replace obsolete equipment. The program also in- cludes the services of consultants t:o carry out a detailed traffic cost study, to advise on railway management and to advise on railway workshop design and equipment, and technicians to strengthen the Railway staff. An important func- tion of both consultants and technicians will be to assist the Railway in train- ing local staff. The Government of Mali and the Railway also plan to introduce a series of internal measures aimed at correcting the Railway's presently unfavorable financial position. As a result of these measures and the expected growth in traffic, the Railway should start showing profits in the near future. • • - 3 - The project is scheduled for completion in mid-1969 at a total eatimated cost equivalent to $11.1 million. the IDA er~di.t will e~ver most of the foreign ex- change costs; the Railway will cover the local currency costs out of its own re- sources. The IDA credit will be for a term of 50 yea~s. Repayment of principal will begin in January 1977, after a 10-year period of grace. Thereafter, ll of the principal will be repayable annually for 10 years and 31 will be repayable annually for the remaining 30 years. The credit will be free of interest, but a service charge of 3/4 of 1% per annum on the amount withdrawn and outstanding will be made to meet IDA's administrative costs. The Government of Mali will re 0 lend the proceeds of the IDA credit to the Mali Railway at 6% interest, repayable over 30 years including a grace period of three years • • •  MALI RAILWAY '' ''' Railways ~l.if;:r:IF,lf fo:; 0 100 200 300 400 500 Regic <lu Che1~in Je l'cr du ,,1:i Ii KILOMETERS Major roa<ls !Ml fo. lll R if" IA ~ u 114. '' ~- \ ' ' '-,.-· __ ./ ,r "-' ' I I ---- / _,,,,,,. . / ~ i, ~ \ '" .) i..._._, ~ ../ I ----- ~· .. ........... --..... '-....,r-. j / ······. G DJ u iP1 p ~ ~ V©) lL'f/fe. i } / ~ . . . . r·....J·-·-\ :,..,. ·, ~ ~ ~ .I'./ . 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