Announcement of Six Million One Hundred Twenty Thousand Dollar Credit to Niger for Road Maintenance on September 23, 1968

'I FOR. IMMEDIATE REL.EASE .'..INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W., WASHINGTON D. C 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 68/22 Subject: $6.12 million credit to Niger September 23, 1968 for road maintenance Transport costs in Niger, which now place a heavy burden on the economy, will be substantially reduced as a result of a four-year road maintenance program to be carried out with the assistance of a $6.12 million credit from the International Development Association (IDA). Roads are the main mode of transport in Niger. Because the country is land- locked it has to rely on ports in neighboring Nigeria and Dahomey, some 800 miles distant, for its overseas export-import trade. The condition of its own road net- ~ work of some 4,500 miles is generally poor, with a number of roads impassable in the rainy season. The Department of Public Works has been unable to keep pace with maintenance requirements because of the lack of sufficient funds, equipment and trained personnel. In 1964 IDA made a credit of $1.5 million for the construction of two short road sections, mainly to expedite the shipment of the chief export, groundnuts, to neighboring ports. At that time it was recognized that improved maintenance was an urgent need and the World Bank subsequently made a grant of $85,000 to finance the cost of consultants to prepare a road maintenance program. The program now being financed is based on the consultant's recommendations. The program provides for the purchase of maintenance and shop equipment, the extension and improvement of workshops and stores, and the training of main- • tenance personnel at all levels. The Department of Public Works will execute the program with the assistance of consultants. The program will eliminate the backlog /more ,. IDA No. 68/22 - Niger -- Road Maintenance • - 2 - of maintenance work and provide a sound base for new work. It will reduce ve- hicle operating costs and also expenditures required in the future for routine maintenance and road rehabilitation and construction. Part of the IDA credit will be used for feasibility studies, to be carried out by consultants, of about 180 miles of roads with subsequent detailed engineer- ing and preparation of bidding documents for about 90 miles of high priority sections to be selected by the Government and IDA. The total capital expenditures of the maintenance program are estimated at the equivalent of $8.13 million, of which 67% will be financed by IDA, 2% by the French Fonds d'Aide et de Cooperation, and the remainder by the Government of Niger which will also finance all recurrent maintenance costs during the pro- ~ gram period. The IDA credit will also finance the foreign exchange costs of consultants' services for the preinvestment studies estimated at $630,000 out of a total cost of $820,000. The IDA credit is for a term of 50 years. It is free of interest but a service charge of 3/4 of 1% will be made to meet IDA's administrative costs • •