Announcement of 3 Million Dollars Loan, 2.6 Million Dollars Credit for a Second Highway Project in Liberia

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 1818 H STREET. NW. WASHINGTON D.C.20433 TELEPHONE, EXECUTIVE 3-6360 Bank Press Release No. 73/29 Subject: $3.0 million loan, $2.6 million IDA Press Release No. 73/38 ~,..~ifi +. f'n-,.. a second highway project fuy 29, 1973 in Liberia The World Bank Group will jointly finance with the U.S. Agency for International Development (USAID), the Federal Republic of Gennany and the United Nations Development Programme (UNDP) a $14.1 million equivalent Liberian highway project that will improve road maintenance and facilitate access to the port of Monrovia. The Bank Group fit:.ancing consists of a $3.0 million loan by the World Bank and a $2.6 million credit by the Bank's affiliate, the International Development Association (IDA). These funds will be used for the upgrading of the 8.4-mile Monrovia bypass, technical assistance for the Ministry of Public Works, a special study of the Liberian construction industry, preinvestment studies for port access and other main roads, and equipment for road maintenance workshops. USAID is providing funds for highway maintenance ~quipment, spare parts, radio communi- cations and traffic counter3. The Federal Republic of Germany is assisting in training Liberian personnel in highway maintenance. UNDP is contributing funds to assist the ~nistry of Public Works in program coordination. The project is an important component of Liberia's Five-Year (1973-77) Highway Main- tenance and Development Program which aims at alleviating growing congestion in and around the port of Monrovia; improving primary roads and 2ccess roads into agricultural areas where development activities are centered; and improving highway maintenance operations. It is based on two feasibility studies -- one financed by UNDP with the ··lorld Bank as executing agency and the other financed under a 1969 World Bank port loan. This is the second financing by the World Bank Group of a highway project in Liberia. The Bank approved a $3.25 million loan in 1964 and a $1.0 million supplementary loan the follQwing year to assist in the construction of about 69 miles of new roads, improving about 21 miles and to provide maintenance equipment, sptre parts and workshop facilities. This project has been completed. The current World Bank loan is for 25 years, including a five-year grace period, with annual interest of 7~. The IDA credit is for 50 years, including a 10-year grace period, and is interest free except for a 3/4 of 1% service charge to cover IDA's administrative expenses. Industrial National Bank of Rhode Island, Providence, is participating in the World Bank loan to Liberia for a total amount of $105,000. - 0 - •  INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTEHNA'rIONAL DEVELOP1\1IENT ASSOCIATION • 1818 H STREF.:T. NW WASHINGTON D.C.20433 TELEPHONE: EXECUTIVE 3-6360 May 29, 1973 TECHNICAL DATA PROJECT: Second highuay COUNTRY: Liberia TOTAL COST: $14.1 million equivalent BANK AND IDA FINANCING: $3.0 million Bank loan, 25 years, 5 years of grace, iaterest 7~% per annum; $2 .6 million IDA credit, 50 years, 10 years of grace, interest free except for 3/4 of 1% service charge to cover IDA's administrative expenses. · OTHER FINANCING: U.S. Agency for International Development, $4.4 million; Federal Republic of Germany, $1.9 million; U.N. Development Programme, $100,000; Liberian Government, $2.1 million equivalent. • IMPLEMENTING ORGANIZATION: Ministry of Public Works, Monrovia, Liberia. PROJECT DESCRIPTION: World Bank Group: Improvement of highway maintenance operations, construction and equipping workshop facilities, upgrading 8.4-mile Monrovia bypass, preinvestment studies for port access and other main roads, study of Liberian construction industry; USAID: provision of highway equipment and spare parts; Germany: training of personnel in highway maintenance; UNDP: assistance for Ministry of Public Works in program coordination. PROCUREMENT: Bank Group-£ inanced procurement for Monrovia bypass and work- shop equipment on basis of international competitive bidding; work- shop buildings will be provided by the Government. USAID procedures apply on its financing. CONSULTANTS: Consultants to be selected by the Gove1111ment for improving highway maintenance operations, supervision of bypass construction, preinvestment studies on roads, study of Liberian constructing industry~ Studies carried out by SAUTI C.Onsultants of Italy and Stanley Consult- • ants of the United States were used as the basis for this project. ESTIMATED COMPLETION DATE: Mid-1977. - 0 -