Announcement of Bank and IDA to Provide Thirty Million Dollars for Roads in the Malagasy Republic on December 21, 1972

INTERNATIONAL BANI{ FOR • RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVJ~~LOP~II•~NT ASSOCIATION 18 18 H STREET, N W WASHINGTON 0, C. 20433 TELEPHONE; EXECUTIVE 3-6360 Bank Press Release No. 72/72 Subject: Banlc and IDA to provide $30.0 IDA Press Release No. 72/70 million for roads in the December 21, 1972 Malagasy Republic The World Bank Group, continuing its assistance to the Malagasy Republic in develop- ing a modern highway network, has approved financing of $30 million for this purpose a World Bank loan of $15.0 million and a $15.0 million credit from the International Development Association (IDA), an affiliate of the World Bank. Because of the size of &dagascar, the world's fourth largest island, its rugged terrain and the small, unevenly distributed population, the build-up of a road network adequate for the requirements of economic development has been a major problem. The Government has ma.de considerable investments in road improvements in recent years, giving e:-nphasis to projects which are directly related to the provision of links bet~een the ~i?'! urban centers, the construction of penetration roads in the promising agricultural areas, the improvement of port facilities and the strengthening of the railroad which provides a more economic means for transportation in certain areas and for certain commodities. • The two previous road projects of the Banlc Group gave support to this policy in that they would contribute to agricultural development by increasing the all-weather land connections in the central and northern regions. The Tama.tave port project, currently in execution, will soon provide an improved outlet for exports. The road project now being financed will continue the support. The project comprises the construction of sections of three roads totaling 259 miles including 12 major bridges. The section on road RN-44, between Vohidiala and Ambatondrazaka is already carrying heavy traffic from paddy production areas in the Lac Alaotra region; the section on road RN-1, between Arwonima.mo and Analavory west of the capital city Tananarive leads to an area with ranching potential being developed with Bank Group assist- ance; the sections on road RN-34 between Antsirabe and Ma.laimbandy through the Sakeny River Valley, one of the most fertile areas of Madagascar where developnent has been retarded because of lack of efficient land transportation. Consulting services are included in the project for the detailed engineering stullies of the 125-mile road section between Antsohihy and Ambanja on the Tananarive Diego Suarez road and for the improvement of the traffic counting system necessary for rational highway planning. The project is scheduled for completion by June 1977 at a total estimated cost of $43.9 million, of which $30e0 million will be financed by the Bank loan and IDA credit and the remainder by the Government. The World Banlc loan will be for a period of 25 year~ including 10 years of grace, vi th interest at 7~ per annum. The credit will be for a term of 50 yea:rs, also with a 10-year grace period. It will be free of interest but a service charge of 3/4 of 1% will be made • to meet IDA 1 s administrative expenses • The project will be carried out by the Minis tere de l "Amenagement du Ter-ri toire vi th the technical assistance of consultants to supervise the construction, review the traffic counting system and prepare the detailed engineering studies of the 125-mile road. All goods and services financed under the proceeds of the Bank loan and IDA credit will be procured through international competitive bidding.  December 21, 1972 • TEQINI CAL DATJ.\ PBOJECl: Third highway OOUNTRY: Malagasy Republic TOTAL COST: $43. 9 million BANK FINANCING: $15.0 million, 25 years, 10 years of grace, interest at ~ per annum. IDA FINANCING: $15.0 million, 50 years, 10 years of grace, interest free except for 3/4 of 1% service charge to cover IDA's administrative expenses OTHER FINANCING: Government of Malagasy~ IMPLEMENTING ORGANIZATI<E: Ministere de l'Amenagement du Territoire, Tananarive, Madagascar; Cable Address: MINITRABLICS, Tananarive. • PROJEcr DESCRIPTIW: Construction of approximately 259 miles of primary roads, namely: Route Nationale 44: Vohidiala-Ambatondrazaka 15 miles; Rti-I: Arwonimamo-Analavory 37 miles; RN-34: Antsirabe-Betafo 13 miles; Betaf o-Mandoto SO miles; Mandoto-Miandrivazo 73 miles; Miandrivazo- Malaimbandy 71 miles; and twelve major bridges on the Miandrivazo- Malaimbandy section. Cmsulting services for: supervision of construc- tion of above; detailed engineering of a further 125 miles of primary roads; and a review of the traffic counting system. PROCUREMENT: The services to be procured are: construction of approximately 259 miles of roads and 12 bridges; supervision of a detailed engineering study of 125 miles of primary roads; review of the traffic counting system. Construction contracts will be awarded on the basis of intemational com- petitive bidding in accordance with the normal procedures of the Bank Group. To take advantage of possibl~ economies of scale through the use of larg2r contractors, and at the same time to allow small firms to compete, constructi<lll w~rks will, for contract purposes, be divided into two packages of contracts, one including 2 jobs and the other 5 jobs, the first pack.age totaling approximately $8.5 million and the second $25.4 million. The estimated value of the individual jobs ranges from about $1.0 million to $8.8 million. The works in each package will be bid concurrently; bids may be submitted on single jobs , on several, or on entire packages. Contracts will be awarded on the basis of the lowest overall evaluated bids. • CONSULT.ANTS: To be selected. ESTIMATED OOMPLETION DATE: June 1977. - 0 -