Announcement of Twenty-Eight Million Six Hundred Thousand US Dollars Loan for a Fifth National Highway Project in Thailand on December 7, 1972

INTERNATIONAL BANK FOR • RECONSTRUCTIQN AND DEVELOPMENT 1818 H STREET, N.W.,'WASHINGTON Bank Press Release No. 72/71 December 7, 1972 0. C. 20f,33 / ULEPHONE: EXECUTIVE Subject: l/ 3-6360 $28.6 million loan for a fifth national highway project in Thailand 0 'Ihe World Bank today announced a loan of $28.6 million to help finance a highway- project in Thattl.and, designed to improve coJ1D11Unication between Bangkok, the country's principal port and business center1, with several important in<ius trial and agricultural centers and to stimulate economic activity in these areas. 0 O"{e r the 1 pa.st 10 ;rears, Thailand 1s transportation network, with Bangkok at the center, has expanded rapidly. This expansion has been largely detennineq by the need to link Bangkok with outlying re~ons which produce primary and agricultural products. The road system is the predomi~nt mode for freight transport. It now consists or about 6,460 ntlles of national highways, 3,660 miles of provincial (f~eder) roads, and about 21,700 miles or l!)cal roads • -- ''Under_ the project being assisted by the Bank, three nat_ional highway sections, total- C, ing 177 miles will"be built and Improved. The Dqn Hiang-Bang ,Pa In-Saraburi. ~. 0 ~+.-1 n"'_ h ""'&II·-· of the most he~vily tra.£fi~ked highways in the North-South axis. The Siraoha•Barong section .in. the.Southeast region will provide a more direct lillk to.Ray"ng.,·an industrial-and tourism center. '!he Langsuan-Suratthani section is part of a' future highway which will provide a direct route-down the eastem coast or the Kra Isthmus in. the southem region and link major population centrrs. ,. \-}. The project also provides for the construction and improvement of four provincial • (feeder) .roads totaling about 240 miles. The San Sai-Phrao and Chiengma.i-M!i Suai roads are expected to promote agricultural development by providing all-weatheitroads to~, Chiengmi, the second largest city in Thailand. The Suphanburi-Chainat road will serve a· highly- developed region, with a population of 1201 000, within the Chao Phya irrigation project area, which has received Bank suppo~t. The Khao Daeng-Ranot road will provide an all- weath~f road serving a population of about 1001 000. The area is primarily agricultural, supplying S~ngkhla. and Had;yai, the principal cities in the Southern region. The project includes feasibility studies by consultants of about 750 miles of provincial (feeder) roads and detailed engineerir.ig .of about 500 miles, if justified, a highway maintenance study, and the purchase of urgently-needed·maintenance equipment, and technical assistance to the Department or Highways, in the Ministry or Co11D11Unications and to the Ministey as a whole in setting up a transport planning unit. · '\ ' 'l'he\1 estimated cost o:r the project is $58.6 millioB, o:r which $28.6 million will be 1 financed by the Bank loan and the remainder by the Government. All construction 'and im- provement works areoexpected to be comp}.eted by mid-1977; feasibility studies. of feeder roads are schedul1d for completion by late 1974 and detailed engineering by- ''late 1975. The Department or Highways is responsible £or executing the project, except for the technical assistance to be provided to the }tl.nistry or Communications. The Bank loan is being •de to the Kingdr.qn,i of Thailand for a term or 24 years, in- cluding four and a half 7ears or grace, with "interest at 7¥, per annum. El.even Japanese and United States financial institutions are participating in the loan to the Kingdom of Thailand for a total or approximately $2· million ~quivalent. Th'8y' are: • The Mitsubishi Trust and Banking Corporation, Tokyo; The Hokkaido Takushoku Bank, Limited, Sapporo;",~]he Dai ...Ichi Kangyo Bank, Ltd.,· New York Agenc:y; Franklin National Bank, New York; The Toyo Trust & Banking Co., Ltd., Tokyo; American National Bank & Trust of New Jersey; Security Pacific National ,;.:Bank, Los Angeles; The Detroit Bank & Trust Company; The Tokai Bank, Limited, Nagoya; Bank of America, New YorR; and. The Bank or Tokyo, Limited, Tokyo.  () c;:J • (_l DecelGber 7, 1972 0 TEQIN.ICAL DATA (\ /' . \\ PROJECl': Fifth Hig~:-ray . COUNTRY:' Thailand TOTAL COST: $58.6 million· \ $28.6 million loan, 24 years inclµding ~ y~ars qf grace, ' iANK FINANCING: with interest: · at M per annum. // /) O'lBER f+NANCING: Government funds. IMPL~1MENTING QRGANIZATICll: Dep~rtment of Highways, Ministry of Communications, Rama VI Road and Sri Ayudhaya Road, Bangk~k. Telephone No.: 817577. 0 PBOJECl DESCRIPTI<lt: Constructi~n ~~_improvement of three highway sectio~ totaling about 177 'miles and four· p'tovinci-aI' (feeder) roads. totaling about· 240 miles; purchas·e·· of maint_enance equipme11t. PROCUREMENT: International competitive. bidding for constr-Jction and maintenance equipment. In the comparis~ of bids for the supply of mainte~~ce equipment, a 15%. preference margin or the applicable cus·toms du·ty, whicheve.~ is lower, will be applied to bids from local manufacture1·s. • OONSULTANTS: De Leuw Cather Intemational Inc., 56 Suriwongse Road, Bangkokjl Thail~d, will supervise construction of the Don Muang-Bang Pa In-Saraburi and the Langsuan-Suratthani 0 oad sections. Kampsax, 55 Oriental Avenue, Bangkok, Thailaµd, will supervise construction of the Siracha-Rayong road section. Scott, Wilson and Kirkpatrick, P.O. Box 2763, Bangkok, will supervise construction of the four provincial (feeder) roads. T.P. O'Sullivan, 44 Queen AnneJs,, Gate, Westminster, London, S.W.l., England, will provide the Departmen,~ of Highways with assistance in highway planning and execution, highway maintenance and training. Consultants to carry out the .,feu.f'bility studies of about 750 miles and detailed engineering of ibout 500 mil~~ u£ pruviu~lal {f~~d~~) roads and the highway maintenance study to be selected. ESTIMATED. COMPLEnON DATE: All construction and improvements are expected to" be completed by mid-1977, feasibility studies of feeder roads by mid-1974 and- detailed engineering by late 1975; orders for main- tenance equipment are expected to be placed in mid-1974. • - 0 -