Announcement of Eight Million Dollars Credit for a Second Highway Project in Senegal on March 1, 1973

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 73/9 Subject: $8.0 million credit for a second March 1, 197 3 highway project in Senegal The World Banlc Group, continuing its assistance to the Republic of ~enegal in de- veloping a modern transport sector, has approved an $8.0 million credit for a second highway project from the International Development Association (IDA). Senegal possesses a relatively well-developed transport system, comprising some 5,650 miles of roads, 640 miles of railways, and a modern deepwater port and airport at Dakar. Transport has consistently ranked high among the Govemment's investment priorities since independence. Past policy has succeed•~d in .providing a well developed highway system. Given the Government's objective of diversifying the economy, the top priorities in the highway sector are the construction or reeder roads to stimulate new areas or production and the maintenance of the existing system. The development of feeder roads has been dealt with in a number of previous Bank Group projects. IDA's first highway project helped finance four feeder roads totaling 48 miles in the Sine Saloum region in central Senegal. The Tarras Neuves and Casama.nce Rice projects in 1971 helped finance over 185 miles of f,eder roads in eastern and .southern Senegal. The present project would finance technical assistance to help identify priorities and coordinate planning for future feeder road construction. The project includes the first phase of a long-term program, 118.Dl81y, the rehabili- tation of 68 miles of paved roads. 'lhese road sections are: Rufisque-Bargny 2.9 miles; Diam Niayes-Sebikotane 3.3 miles; Sinndia-N'Guekhokh 9.9 miles; M'Bour-'I'tlu.diaye 17. 3 miles; Thiadiaye-Fa tick 21.6 miles; and Kaolack-Birkelane 12. 9 miles. Four of these sec tors lie on the ma.in road to The Gambia and Casama.nce sou th of Dakar. The project will include the financing of feasibility studies of about 120 miles of roads and the detailed engineering studies of the road section Louga, a small town northeast of Dakar and N1Gni th, a fishing village on the sh",..e of lake Guiers the source of jgkar I s water supply. The total capital cost of the project is estimated to be $11.0 million. The IDA credit would be equivalent to the estimated foreign exchange component of $8.0 million. The Government of Senegal would contribute the remaining $3.0 million equivalent. The IDA credit is for 50 years, including a 10-years grace period. It is interest- free except for a 3/4 of 1% service charge to cover IDA's administrative expenses. The project will be carried out by the Department of Public Works with the assistance or consultants for the supervision of construction and pre-investment studies. Goods and services financed under the proceeds of the credit will be procured on the basis of • international competitive bidding~ The project is expected to be completed in December 1977. - 0 -  • March 1, 1973 TEQINI CAL DATA PJl)JECT: Second highway OOUNTRY: Senegal T<YrAL OOST: $11 million lilt\ FINANCING: $8.0 million, SO years, including 10 years of grace, interest- free except for 3/4 of 1% service charge to cover IDA's administrative expenses. OTHER FINANCING: The Government of Senegal $3.0 million equivalent. IMPLEMENTING ORGANIZATION: Direction dea Travaux Publiques, Ministere des Travaux Publiques, de l'Urbanisme et du Transport, Dakar, Senegal. PROJECT DESCRIPTION: Pavement strengthening of six sections of road totaling about 68 miles; a four-year program. to improve highway maintenance by the reorganization of maintenance operations and equipment repair -- • including training all levels of Directorate of Public Works' personnel -- and the purchase of equipment and spare parts; preinvestment studies for upgrading 52 miles of road between Louga and N'Gnith, strengthening of 120 mil.es of paved road, and planning of future feeder road construction. PROaJREMENT: Civil works equipment for maintenance and spare parts, workshops and equipnent, radio equipment, mobile scales. Goods are to be procured on the basis of international competitive bidding. OONSULTANTS. TE<JINICAL ASSISTANCE: To be selected. They wil.l be responsible fer the superviaion of the construction and carrying out of the preinvestment studies. · ESTIMATED OOMPLETIClt De\TE: December 1977. - 0 - •