Announcement of 7.2 Million Dollars Lent for Highways in Sierra Leone on October 28, 1970

INTERNATIONAL BANK FOR Q\',"F.LO/•,i,<!'i,.,. RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION (~) 1818 H STREET, N.W. WASHINGTON D.C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 70/62 IDA Press RaleaDe No. 70/49 §ubject: $7.2 million lent for highways October 28, 1970 in Sierra Leone The World Bank and its affiliate, the International Development Association (IDA), are lending the equivalent of $7.2 million to Sierra Leone in support of the Gov~Lnment's program to improve the road network both by new construction and better maintenance. The Bank loan of $3.7 million will be for a term of 22 years, including four years of grace, with interest at 7-1/4%. The IDA credit of $3.5 million will be for a term of 50 years, including ten years of grace; it will be interest-free ~ but will carry a service charge of 3/4 of 1% to cover IDA's administrative costs. The focal point of Sierra Leone's transportation network is Freetown, the capital and most important administrative and commercial center, as well as the main port. From Freetown the network reaches into the interior to the most j.m~~rtan~ population and procuction centers. Traffic has increased steadily in recent years as a result of the growth of the economy which has averaged about 5% per annum; at the same time there has been a shift from rail to road transport. Although Sierra Leone has about 5,000 miles of roads, only 300 miles are paved. The roads are generally inadequate for present traffic and are deteriorating because of lack of maintenance. As a first step toward fo1proving the transport system, the Government in 1966 commissioned consultants to c.arry out a Land Transport Survey which was finenced • by the United Nati.ens Development Programme (UNDP) with the World Bank as Executing Agency. The main reconnnendations of the Survey wer3 to close down the obsolete Bank P.R~ No. 70/62 - Sierra Leoni;-Hi.ghways 1.DA P.R. No~ 70/49 - 2 - an<l uneconomic Sierra Leone Railway, and to improve the two main trunk roads from Freetown, one to Kenema and the other to Sefedu, and to undertake a comprehensive • road maintenance program. The Government has agreed to phase out the railway by 1972, and has formulated a Five-Year Road Development Program (1971-75) along lines indicated by the Survey. Two of the road sections are being built with bi- la.teral financing from the United Kingdom and the Federal Republic of Germany. Bank/IDA financing will be used for the construction of a 43-mile road between Bo and Kenema, the second and third largest towns in Sierra Leone, both important administrative and commercial centers. The area served has a population of about 500,000, is important for the mining of diamonds -- the chief export, and produces nearly all coffee and cocoa exports. The road is the last section to be completed of the trunk highway between Freetown and Kenema. Funds are included for the detailed engineering of this road and of the rural section of the road between Freetown and Waterloo, and for road maintenance equipment. Bank Group assistance will be supplemented by the UNDP which is financing a • feasibility study of the heavily congested urban section in Freetown, to be fol- lowed, if justified, by detailed engineexing, and is providing technical assist- ance to the Ministry of Works. The provision of technical assistance and mechan- ical equipment will help the Government implement the program for improving high- way maintenance. The program will involve a major reorganization of the Highway Division of the Ministry of Works, a large increase in the budget for highway maintenance, and new investment in equipment and workshops. The Ministry of Works will be responsible for executing and administering the project which is scheduled for completion in 1974 at a total cost equivalent • to $10~4 million. Contracts for construction and the procurement of mechanical equipment will be based on international competitive bidding. - 0 -