Announcement of 2.1 Million Dollars Credit for Highways in Senegal on June 17, 1970

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release Ho. 70/34 Subject: $2.1 million credit for June 17, 1970 highways in Senegal A credit of $2.1 million approved by the International Development Association (IDA) will assist a project for construction and improvement of feeder roads for groundnut producing areas of Senegal. The project, which will be the third World Bank Group operation.in Senegal's transportation sector, concentrates on the Sine Saloum region where 40% of the groundnut producing areas are situated. Senegal has long-range plans to diversify its agriculture, but will remain heavily dependent on groundnuts for some time to come. The improved roads in these areas will '~lp the work of Government agencies seeking to increase the output of 1 • groundnuts which account for about three-quarters of the country's exports. The all-weather feeder roads envisaged by this project will replace unreliable seasonal tracks over which products and passenger traffic now move at high cost. The Ministry of Public Works and Urban Development and Transport of Senegal will be responsible for execution of the project which includes construction of 48 miles of feeder roads, purchase of road maintenance equipment and vehicles, and the provision of consultants' services for a road improvement and maintenance study with special emphasis on feeder roads. This study will form the basis of plans for a four-year improvement and maintenance program of Senegal's highway system. The total cost of the present project is $2.5 million and the IDA credit represents over 80% of the total. The credit will be extended to the Government of Senegal without interest for a 50-year term,including a 10-year period of grace, with a serv!ce charge of 3/4 • of 1% per annum. - 0 -