Announcement of Six Million Dollars Credit to Jordan for Highway Construction on June 21, 1971

~TERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON 0. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 71/28 Subject: $6.0 mil!ion credit to Jordan for June 21, 1971 highway construction The International Development Association has approved a $6.0 million credit for a highway project in Jordan including highway construction and related r,·,ncrn l 1-; ng cQl'"Uir-as' purchase of road maintenance equipment' technical assistanC('' and an urban transportation study of Amman. Highway construction under the credit relates to an 11-mile, four-lane highway between the two major East Bank cities of Amman and Zarqa. This section of the road network forms part of the routes from Amman to Jordan's neighbors to the north and east. It is also at the economic and industrial c~nter of the country. There are important phosphate deposits midway between the cities, an oil refinery at Zarq[,_ and a cement plant near Annnan. Population has expandr.d rapidly in the two cities and in the corridor linb.n.g them and has resulted in a steep rise in traffic. The present road can no longer handle the volume and new road capacity is urgently needed. The IDA credit is being made to the Hashemite Kingdom of Jordan for 50 years~ including a 10-year grace period. It is interest free but carries a 3/4 of 1% service charge to meet IDA's administrative expenses. The credit covers the foreign exchange component of the $8.7 million project. The Government will provide the $2. 7 m'~llion balance of the financing. Bidding for the road construction contract has been completed with eight contractors from six countries participating; project costs are based on the lowest evaluated bid price. The road maintenance equipment procurement will also be subject to international competitive bidding. The Ministry of Public Works (Amman, Jordan) will implement the project, which is expected to be completed about mid-1974 • •• 0