Announcement of Six Million Four Hundred Thousand Dollars Loan, Three Million Two Hundred Thousand Dollars Credit for Second Senegal Railway Project on June 19, 1972

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNA l'IONAL DEVELOPMENT ASSOCIATION 1 18 1 8 H ST R E ET, N W WASHINGTON D.C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 72/40 Subject: $6.4 million loan, $3.2 million IDA Press Release No. 72/36 credit for S8cond Senegal rail- June 19, 1972 way project The World Bank and the International Ievelopment Association have approved a loan to the Regie des Chemins de Fer du Senegal (Regie) of $6.4 million, and a credit to the Republic of Senegal for $3.2 million to help finance the second railway project. The French Caisse Centrale de Cooperation Economique (Caisse Centrale) and the Fonds d. 1Aide et de Cooperation (FAC) are-also participating in the project to the extent of $1.J million. Senegal's capital (Dakar) is the natural point of entry for 6 ~ods destined for neighboring Mali and Mauritania, and a third of th,3 freight qarried by Senegal's rail system represents transit traffic to these countries. Dakar is ar~ important stopover for South Atlantic air traffic and is also on major international shipping routes. For this reason transportation has continued to rank high among investment priorities since Senegal's independence. • The objective of the project which will cover the foreseen railway investment needs for the Fourth Four Year Plan (1973/74-1976/77) is to pursue the physical rehabilitation of the Regie I s equipment and improve its management operations and finances. Previous Bank Group lending for the Regie in 1966 provided $9.0 million for modernization and rehabilitation of the system. The project, which represents the Bank Group's ninth operation in Senegal and brings total lending commitments to $39 million, provides for 110 miles of track renewal between Dakar and the Mali border, 151 miles of which are already renewed with anotrer 140 remaining. Also provided is rehabilitation and equipment for the workshops at Thies, modernization of rolling stock, six 1,200-horsepower diesel locomotives, and consultants for training and technical assistance. The Regie, under the authority of the Ministry of Public Works, Urbanism and Transport, will have responsibility for execution of the project with the technical assiste.nce in management provided by the project. The planning unit which was established in 1970 will continue to provide assistance, particularly in the imple- mentation of a new freight structure. The total cost of the project is $12.3 million with a foreign exchange component of $6.8 million. The IDA credit of $3.2 million and Bank loan of $6.4 million will finance 77% of the cost. The remainder would be financed as follows: a credit from Caisse Centrale of 6%, a grant from FAG of 5%, and the Regie's own resources will provide 12%. The Bank Group operation will finance 83% of foreign exchange costs and 74% of its local costs. The loan is for 25 years, including five years of grace, at ?!% interest per annum and will be made to the Regie. The credit is for 50 years, including 10 years • of grace, and is interest free except for a 3/4 of 1% service charge to rooet IDA's administrative expenses. - 0 -  • June 19, 1972 TECHNICAL DATA PROJECT~ Railways COUNTRY: Senegal TOTAL COST: $12. 3 million BANK/IDA FINANCING: Bank: $6.4 million, 25 years, 5-year grace period, 7!-t.% interest per annum; IDA: $3.2 million, 50 years, 10-year grace period, interest free except for 3/4 of 1% service charge to meet IDA's administrative expenses. OTHER FINANCING: Ccisse Central and FAC $1. 3 million. • IHPLEHENTING ORGANIZATION~ FERSENGAL, Thies, Se:negal. PROJECT DESCRIPTION: The project is designed to carry on the physical rehabilitation of the Regie's equipment and to improve its manage- ment, operations and finances. The project will also provide assistance to i.mprove overall transport policy and planning. PROCUREMENT: Equipment: Renewal of 110 miles of track with 36 deg/m long welded rail; procurement of six 1200-h.p. diesel locomotives; moderniza- tion of rolling stock and motive power workshop, installation of handling equipment, replacement of machine~tools. International competitive bidding except for locomotives. CONSULTAl~TS: Provision of technical services and training: one expert (1 year) for train operations; one eh-pert (2 years) organization of Thies workshop; one expert (7 months) to implement casting study; two experts {2 years each) overall transport planning and policy. • ESTIMATED COHPLETION DATE: i1arch 19 75. - 0 -