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

INTERNATIONAL BANK,, FOR • RECONSTRUC'I1:0N AND DEVELOPl\iENT INTERNATIONAL DI~VJ1~LOP1\1ENT ASSOCIATION 181 8 H STREET, N W. WASHLNGTON D.C.20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 72/72 Subject: Bank and IDA to provide $)0.Q IDA Press Release No. '72/70 million for roads in the December 21, 1972 MalagaRy Republic The World Barile Group, continuing its assistance to the Malagasy Republic in develop- ing a modern highway network, has approved financing of $)0 million for this purpose a World Bank loan of $15.0 million and a\$15.9 million credit .from the International Development Association (IDA), an affiliate of the ·world Barile. Because of the size of Madagascar, the world's fo~rth largest island,its rugged terrain and the small," unevenly distn,quted population, the build-up of a road network · adequate for the requirements of econotirl.c development has been a major problem. The Government has made.. considerable investments in road improvements in recent yeaTS·, giving emphasis to projects which are directly related to the provision·of links between the main . urban centers; the construction of penetration roads in the promising agricultural areas, the improvem~nt of port facilities and the strengthening of the railroad'which provides a more economic means for transportation in c.ertain·areas and for certain conmodities. • The two previous road projects of the Bank 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 Tamatave 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 2S9 Jll:l.les 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 Arwonimamo 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.laimba.ndy' through the Sakeny River Valley, one of the m9st fertile areas of Madagascar where developnent has been retarded because of lack of eitfici~nt land transportation. Consulting services are included in the project for the detailed engineering stuMes of the 125-mile road section between Antsohihy and Ambanja on the Tananarive Diego Suarez road and for the improvement of the traffic counting s79tem 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 $JO.O million will be financed by the Bank loan and IDA credit and the remainder by the Government. The World Bank loan will be for a period ol 25 years including 10 years of grace, with interest at 7~ per annum. The credit will be for a tem of 50 yeal'S also with a 10-;rear grace period. It will be free of interest but a service charge of 3/4 of 1% will be -.de • to meet IDA I s administrative expenses. 1 The project will be carried out by the M:Lnistere de l"Amenagement du Territoire vi.th the technical assistance of consultants to>supervise the construction, review the traf'tic counting system and prepare the detailed engineering studies of the 12S-m:l.le road. All goods and services financed under the proceeds of the Bank loan and mA credit will be procured through international competitive bidding.  December 21, 1972 • TEQINICAL DATA PBOJECl: Thim highway (? OOUNTRY: ~alagasr ~public' TOTAL CX>ST: $43. 9 millian BANK FINANCING: $lS.0°~illion, 25 years,'' 10 years of grace, interest at ~ per annum. IDA FINANCIMG: $15\0 millim, SO years, 10 years of grace, intereat free except for 3/4 of u· service charge to. cover IDA 's administrative expenses OTHER FINANCING: Goverment of Malag'asy.~ IMPLEMENTING OR~IZATl<lh Mini"fete· cie ~~i.; Amenagement du Territo ire' ' ..... Tananarive, Madagascar; Cable Address: Mil'ilTRABLICS, Tananarive. • PROJEcr DESCRIPTIC6: c:onstruction of approximately 259 miles of primary roads, namely: Route Rationale 44: Vohidiala-Ambatondrazaka 15 miles; RN-I: Arwonimam.o-Analavory 37 miles; BN-34: Antsirabe-Betafo 13 miles; Betafo-Mandoto SO miles; Mandoto-Miandrivazo 73 miles; Miandrivazo- Malaimbandy 71 miles; and twelve major bridges on the Miandrivazo- Malaimbandy sectim. Cmsulting services for: supervision of construc- tion of above; detailed engineering of a further 125 mil~s of primary roads; and a review of the traff~c 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 international com- petitive biddipg in •ccorclance with the normal procedures of the Bank Group. To take advantage of possible economies of scale through the use of larger contl'actors, and at the sane time to allow •all firms to compete, construction works will, for contract purposes, be divided into two packages of contracts, one including 2 jobs and the other 5 jobs, the first package totaling approx:lmately $8.S •illion and the second $25 .4 1111.llion. The estimated value of the individual jobs ranges from about $1.0 million to $8.8 million. The work• in each package will be bid concurrently; bide may be aubmi tted on single jobs • on several, or on entire packages. Contracts will be awarded on the bais of the lowest overall evaluated bids. • <X>NSULTANTS: To be aelected. ESTIMATED OOMPLITI<lf DA!J!: June 1977 • .;;. 0 -