Announcement of Ten Million US Dollars IDA Credit for Highways in Malawi on December 4, 1974

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASH I NG TON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA 1fows Release No. 74/67 December 4, 1974 $10 MILLIO~~ IDA CRt.DIT FOk HIGHWAYS IN MALAWI 'fhe International Development Association (IDA), a World Bank affiliate, has made a $10 million credit to Nalawi for highway improvement and mainteuance. A landlocked country in East Africa, Malawi depends on several neighboring countries for the movement of its imports and exports. Within the country, roads are the most important mode of transport. The Government aims at providing a basic and improved trunk road system to serve key production and trade centers. An earlier $11.5 million IDA credit helped the reconstruction of a 180-mile • road between Zomba in the South and Lilongwe, the capital city. The project was satisfactorily completed in 1972. The new credit will help finance the improvement and bituminous paving of the 73-mile road linking Lilongwe and Kasungu, the reconstruction of a bridge, and the establishment of a pilot program to improve the development and mainte- nance of district roads. The project will serve about half a million small farmers who grow and l!larket corn, groundnuts and tobacco, as well as tne Kasungu Game Reserve, an important tourist attraction in the project area. The IDA credit is being made to the Government of Malawi for a term of 50 years, including 10 years of grace, at no interest. IDA charges a 3/4 of 1% commitment fee on tile amount of the credit, to cover administrative expenses. -------------------- • Note: }~ney figures are expressed in US dollar equivalents .  T E CHNI CAL DAT A PROJECT: COUNTRY: TOTAL COST: Highways II Halawi $11. 8 million • IDA FINANCING: $10 million, 50 years, 10-year grace period; free of interest, a service charge of 3/4 of 14 to cover IDA's administrative expenses. OTHER FINANCING: Government allocations. L~Lfil.fENTING ORGANIZATION; Koaas Department, Ministry of Public Works and Supplies, Lilongwe, Malawi. PROJECT DESCRIPTION: Improvement to two paved lanes of the Lilongwe-Kasungu road, including a bypass around the Lilongwe industrial area, and the reconstruction of the • Lingadzi bridge; and a pilot program to improve the development and maintenance of district roads. PROCUREMENT: Contracts for road bypass and bridge con- atruction to be awarded after international competitive bi<l<ling in accordance with World Bank Group guidelines. CONSULTANTS: Consultants to be employed to supervise the construction of the road. ESTIMATED COMPLETION DATE: 1976. •