Announcement of Ten Million US Dollars Credit to Haiti for a Highway Project on May 20, 1974

\"'l't'.'° 1;1.11,._,,~"'> (~) • INTERNATIONAL DEVELOPMENT ~ASSOCIATION 1818 H STREET. N.W .. WASHINGTON IDA Press Release No. 74/21 D. C. 20433 TELEPHONE: Subject: EXECUTIVE 3-6360 $10.0 million credit to Haiti for May 20, 1974 a hif}.hway project. The International Development Association (IDA) has approved a $10.0 million credit to Haiti for urgent rehabilitation works on the Northern Road, from Port-au- Prince to Gonaives and Cap Haitien~ The IDA credit marks the resumption of World Bank Group operations iu Haiti, aimed at supporting the Government's efforts to reconstruct the country's basic economic infrastructure so as to make possible the development of the directly productive sectors. Past Bank Group lending to Haiti has consisted of a $2.6 million Bank loan made in 1956 and a $350,000 IUA credit in 1962, both for highway maintenance and rehabilitation. Most freight traffic in Haiti is by road, due mainly to the relatively short distances between centers of production, consumption, and foreign trade. Haiti has some 3,000 Km (1,865 miles) of roads of which only about 300 Km (186 miles) are paved. Lack of adequate transport facilities has been a major constraint to the conanercialization of agricultural production and has also isolated the provincial centers from Port-au-Prince. The project for which IDA funds are being made available will help alleviate • these problems. Under the project, seven sections, or about 150 Km (93.5 miles) of the nearly 250 Km (155 miles) of the Northern Road, will be reconstructed including a critical section close to Port-au-Prince, the portion of the road that crosses the Artibonite Valley and the northern section of the road linking Plaisance to Cap Haitien, Haiti's second largest city. A major bridge over the Estere River is also being rebuilt. An impo~tant component of the proje~t is technical assistance to be provided in three general areas: a transport survey for future investment planning as well as trainiug of local personnel; advisory ser\1ices for the reorganization of the Ministry of Public Works, Transport and Conanunications; and training to improve the technical and management capabilities of local civil works contractors. Besides the direct benefits associated with the reconstruction of the Northern Road savings in vehicle operating costs and reduced maintenance costs -- the project is expected to provide a year-round communication between the capital city and Cap Haitien, and to stimulate agricultural production in the important Artibonite and Gonaives agricultural areas. The project, which will take about two years to be complete.d, was prepared under a UNDP grant for a feasibility and engineering study, of which the Bank was the Executing Agency. Execution will be the responsibility of the Ministry of Transport, Public Works and Communications. Civil works contracts will be awarded on the basis of international competitive bidding. The total cost of the project has been estimated at $13. 3 n,ilHon. 'l'h,1 IDA credit will finance the foreign exchange costs while local expenditures will be met by the Government. The c.redit has bee11 extended to the Government of Haiti on standard !DA terms: • 50 years, including a 10-year grace period, with no interest except a service charge of 3/4 of 1% to cover IDA'a administrative costs. NOTE: All money figures ar.e expressed in U.S. dollars equivalent. PROJECT: TECHNICAL DATA Highway Rehabilitation project May 20, 1974 • COUNTRY: Haiti TOTAL COST: $13.3 million IDA FINANCING: $10.0 million, 50 years, 10 years of grace with a service charge of 3/4 of 1% to cover IDA's administrative costs. OTHER FINANCING: $3.3 million to be borne by the Governmento IMPLEMENTING ORGANIZATION: The Ministry of Public Works, Transport and Communications, Port-au-Prince, Haiti. PROJECT DESCRIPTION: Rehabilitation of seven sections of the Northern Road (Port-au-Prince-Gonaivee-Cap Haitien), representing the most urgent works. Reconstruction of bridge on the Estere River. Improvement through technical assistance in transport planning, in the reorganization of the Ministry of Public Works, Tr$nsport and Communications, and in the domestic construction industry. PROCUREMENT: International competitive bidding for civil works contracts. Works will be divided into three lots. Bidders will be given the opportunity to bid for any combination of lots, including all thrsc. CONSULTANTS: For supervision of project execution; for technical assistance • for transport planning through implementation of a transport survey and the setting up of a planning unit; for advisory services to the Ministry of Public Works, Transport and Communications; and for technical assistance to domestic civil works contractors. COMPLETION DATE: June 30 1 1977. 0 •