Announcement of Thirty-Three Million US Dollars Loan to Lebanon for Highway Project on April 19, 1973

• 1818 H STREEf·. N.W., WASHINGTON Bank Press Release No. 73/17 C\ IJEV'ELOPMENT' D. C. 20433 TELEPHONE: EXECUTIVE:~-6360 Subject: $33 .O million lo&n to Lebanon April 19, 1973 . for highway project (4~~ ~~u~ 1 rry Lebanon will construct an approximately 36-mile expressway to eaae congestion on the heavily tra~elled Beirut-Tripoli route, assisted by a $33 .o million World Bank loan. In addition to the expressway, the estimated $64.2 million equivalent project includes the construction of a maintenance center at Batroun, a feasibility study of~ 11-mile Bei'Jj'Ut by-pass highway and detailed engineer- ing of priority sections; and detailed enginee:~ing of thE-:~ approximately 3·7-mile Bei~ut-Syrian ({ border highway. Studies of Lebanon's highw~y organization and maifitenance and the prepafation of a highway improvement and maintenance pro- gram will also be carried out under the project. The new expressway will be the first phase of a modern highway ·network • serving the densely populated coastal region and providing improved connection with Syria, Iraq, and other Middle East countries. The mainstay of the Lebanese economy is the services sectors. They include transport, commerce and transit trade, banking, tourism, educational ' . and health services, and together they account for almost two-thirds of gross domestic product. The highway project being assisted by the Bank will reinforce the tr4?Sport infrastructure necessary for services activities and, because it is located in the most densely populated area of the country, will directly benefit a significant portion of the population. The Bank loan is for 25 years, including a four-year grace period, with interest at 7~ per annum • .,.ae~ -+weJVe-- French, Japanese, Swiss and United States financial institutions are participating in the Bank loan to Lebanon for a total amount of approxiaately ;1 r, $2. 7 million equivalent. They are: The Mitsubishi Trust & Banking Corporation, Tokyo; Manufacturers Hanover Trust Company, New York; The Sumitcno Trust & 1anking 11 Co., Ltd., Tokyo; 'th• Dai 1•1.. Kana,o Baak, Ltd., New !oz:k-· A&•a~; Union Bank of • Switzerland, Zurich; Central National Bank of Cleveland; First National Bank of Boston; Franklin National Bank, New York; Seattle-First National Bank, Seattle; The Bank of Tokyo, Ltd., Tokyo; Continental Illinois National Bank & Trust Company of Chicago; and Banque de 1' Indo chine,· Paria . - 0 -  April 19, 1973 PROJECT: COUNTRY: Highway Lebanon TEOINICAL DATA • TOTAL OOST: $64 • 2 mi !lion BANK FINANCING: $33.0 million loan, 25 years, 4 years of grace, 7~ interest per annum. OTHER nNANCING: Government of Lebanon. IMPLEMENTING ORGANIZATIONS: Conseil Executif des Grands Proje~s (CEGP), B.P. 5307, Beirut; Cable Address: ALMACHARRIE; Telephone No. 250-080, for Tabarja-Tripoli expressway, maintenance center, procurement of maintenance equipment, pre-investment studies; The Ministry of Public Works and Transport, Beirut.for highway organization and maintenance study. PROJECT DESCRIPTION: Construction of a 36-mile four-lane ·divided expressway between Tabarja and Tripoli and construction supervision; construction of a highway maintenance center in Batrom and purchase of maintenance equipment; feasibility study of the Beirut by-pass highway and detailed engineering of priority sections; detailed engineering of the 37-mile • Beirut-Syrian border highway; highway organization and maintenance studies including preparation of a highway improvement and maintenance program. PROCUREMENT: Intemational bids already called for on the Tabarja-Jbeil section of expressway and awarded to Domiki (Greece) and Hourie-Kunz (Lebanon-Germany). Intemational competitive bidding on remaining sections of expressway and maintenance equipment with 15% preference margin for local suppliers on maintenance and workshop equipment. CONSULTANTS: Government to retain qualified lo,cal consultants for expreaaway, construction supervision. Bureau Central d'Etudea pour lea Equipments d 'Out re-Mer (BCEOM), Paris to assist in project administration, co- ordinating supervision. BCEOM-Associated Consulting Engineering Company (Beirut)-Consolidated Engineering Company (Beirut) group alao carried out preliminary work on maintenance ceiiter, Beirut by-pass. Preliminary studies on Beirut-Syrian border highway carried out by associated consultants' X. u. D. Dorsch (Germany), Miller-Warden-Western (United States) Antoine Salame (Lebanon) and Moustapha Fawaz (Lebanon). ESTIMATED OOMPLETION DATE: Late 19 76. - 0 - •