Announcement of Six Million Thirty Thousand US Dollars IDA Credit for a Third Highway Project in Rwanda on May 30, 1974

• INTERNATI<JNAL DEVELOPMEN.T ASSOCIATION 1818 H STREET. N W. WASHINGTON D C. 204 33 TELEPHONE. EXECUTIVE 3-6360 IDA Press Release No. 74/24 Sutject: $6. 3 million IDA credit for a third May 30, 1974 highway project in Rwanda The International Development Association (IDA), an affiliate of the World Bank has approved a credit of $6. 3 million to help finance a highway project in Rwanda designed to reduce vehicle operating and transport costs, and stimulate development in the project areas. Rwanda is a landlocked country in the heart of central Africa. Because of its long distance from the sea, external trade is adversely affected by high transport costs. Domestic transport is difficult because most of Rwanda's road system consists of un-engineered earth or gravel roads over mowl tainous terrain. Previous World Bank Group lending has focused on improveIIEnt of the road sector and IDA credits totalling $16. 1 million are a£sisting the Government's development • program. The present project which is based on a study made by the United Nations Development Program (UNDP), consists of improvements of about 60 km to two-·lane paved standard of the Ruhengeri-Gisenyi road; feasit ility study and detailed engineering of 116 km of the Kigali-Ruhengeri and 27 km of the Ruhengeri-Cyanika road; technical assistance to the Planning and Engineering Division of the Directorate Gene!ral of Roads and Bridges (DRB); and training of DRB maintenance personnel. The total cost of the project is estimated at $7. 7 million, and the IDA credit of $6.3 million will finance about 82% of total project costs. Belgium has agreed to finance feasibility studies, and if justified, detailed engineering for about 140 km of roads including the road from Kigali, the capital, to Ruhengeri and then to Cyanika at the Ugandan border. The Goven1ment of Rwanda's contribution is about $830,000. The IDA credit is for a term of 50 years, including a 10-year grace period. It is interest-free except for a 3/4 of 1% service charge to cover IDA's administrative expenses. - 0 - • Note: Money figures are expressed in US dolla.rs equivalents. PROJECT: TECHNICAL DATA Third Highway Proj :?ct May 30, 1974 • COUNTRY: The Republic of Rw~mda TOTAL COST: $7. 7 million IDA FINANCING: $6. 3 million, 50 years, 10 years of grace, interest-free except for 3/4 of 1% service charge to cover IDA's administrative exp,:inses. OTHER FINANCING: Belgium has agreed to finance preinvestment s tu.dies 3 estimated at $560,000. The Government contribution will amount to about $830,000 including taxes and duties. IMPLEMENTING ORGANIZATION: The Directorate General of Roads and Bridges (DRB), (Ministry of Public Works and Equipment, Kigali, Rwanda) is responsible for executing the project, with thf:i assistance of consllltants. PROJECT DEtCRIPTION: The project will provide for the improvement to paved standard of the Ruhengeri-Gisenyi road (about 60 km); feasibility study and detailed engineering of the Kigali-Ruhengeri-Cyanika road; • technical assistance, and traim.ng of DRB highway maintenance personnel. PROCUREMENT: Improvement of the Ruhengeri-Gysenyi road will be by contract, awarded after international competitive bidding in accordance with Bank/IDA guidelines. CONSULTANTS: Consultants accepta.ble to IDA will be employed under the project to complete detailed engineering, to assist the DRB in superv1s1ng construction, to plan highway investments and to train maintenance personnel. ESTIMATED COMPLETION DATE: 1977 - 0 ·- •