Announcement of Four Million Two Hundred Thousand Dollar Credit to Central African Republic on March 26, 1969

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W., WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Preaa Release No~ 69/12 Subject: $4.2 million credit to March 26, 1969 Central African Republic A credf.t of $4.2 million to the Central African Republic for a highway project, ann!"tUnced today by the International Development Aa1ociation (IDA), will be the firat operation by the World Bank Group in that large, land-locked and sparsely pnpulated country, more than 375 miles from the we1t coast ef the African continent. The project involves the recenstruction and maintenance. of the 64-mile road linking Bangui, the capital and major trade and industrial center, to the town of M'Raiki in Lobaye Province. With diamonds and uranium ore the only mineral re- • sources of any significance, the Central African Republic must rely for future development largely on agriculture. Lebaye Prevince, economically the most active in the country, holds the greatest potential f~r further agricultural development. As the prime coffee preducer and, s• far, the oply producer of rubber and timber, it contributes about 15~ of the country'• gross d4Ntlestic pr•duct although only 71. of the population lives there. In the Province and areas to the west are vast vir- tually unexploited stands of timber. The improved road link comes at a time when economic activity in the region is expected te expand, with the granting of new logging concessions, plans fer the growing of ne~ crops, and the building of several miles of feeder reads. The Bangui-M'Baiki road will further stimulate economic activity by lower vehicle operating costs and shorter traveling times, as well as a more reliable access to markets in the capital city • • The Bangui-M'Baiki road project is part of a program with a three-pronged ob- jective: improved internal tranaport mainly in the areas ef promising agricultural /more  IDA P.R. Ho. 69/12 - Central African Republic Highway sea; and better road maintenance. - 2 - potential; improvement in the international transport system providing ace••• to the Studies now under way, with financial as•iatance • from the United Rations Development Programme (lJRDP) and the World Bank as Executing Agency, are directed toward helping the Republic achieve theae objectives. A eurvey is being made of the tranaport~tion requirements of the southern regions of the Central African Republic and the adjacent area of Cameroon. Thia includes an invea- tigation of the posaibility of providing an alternative access to the sea by road and rail to the port of Douala in Cameroon. At present the costly and time- conslDDing l,125-mile river-rail route via Brazzaville to the port of .Pointe Noire (Congo) carriea virtually all of the Central African Republic'• international trade. A feasibility study for another road construction project is being made • and a program of improved maintenance of the country's entire road network is being prepared. The Bangui-M 1 Baiki project is scheduled for completion in early 1972 at a total estimated cost of $5.6 million. The IDA credit of $4.2 million will finance the estimated foreign exchange costs and the remaining costs will be financed by the Government of the Central African Republic. The Department of Public Works will be responsible for supervision of construction works and for the maintenance of the road. Construction contracts and procurement of main• tenance equipment will be on the basis of international competitive bidding. The IDA credit will be extended to the Central African Republic for a term of 50 year•, with 10 years of grace. It will be free of interest, but a service charge of 3/4 of 1~ will be made to cover IDA's administrative costs. -- . • - 0 -