Announcement of Thirty-Five Million Dollars for Highway Development in Honduras on November 24, 1976

World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 Bank News Release No. 77/34 November 24, 1976 $35 MILLION FOR HIGHWAY DEVELOPMENT IN HONDURAS The World Bank today approved $35 million in loans for reconstruction and maintenance of roads connecting the Olancho region, in central Hond~ras, to the consumption centers and the export outlets of the country. The amount includes a conventional loan of $28 million, and $7 million in a loan on Third Window terms. Cost of the project has been estimated at $51.2 million. This is the ~eventh Highway Project supported by the Bank in Honduras. The project includes the reconstruction of the primary road between Talanga and Juticalpa (about 114 kilometers) and of the secondary road between Juticalpa and Catacamas •• ( about 4 1 km) • In addition, the project consists .of the purchase of maintenance and workshop equipment, consulting services for the preparation of a Highway Master Plan, technical assist~r.cc, ~nd a study of an integrated development program for the Guayape Valley. The proposed road reconstruction is one of the links of the primary road net- work that has been developed, for the most part, during the last ten years with the six previous highway projects financed by the Bank. It will provide efficient access to one of the largest valleys in the country and to the southern part of the Olancho forestry reserve. For the conventional World Bank loan of $28 million, amortization wi 11 be paid in 20 years, including 4-1/2 years' grace, at 8.7% per annum. The. second loan wi 11 be on standard Thi rd Window terms of 25 years, including 7 years' grace, with interest at 4.7%. Note: Money figures are expressed in US dollar equivalents • • FOAM NO. 1121 (~-78) T E C HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Seventh Highway Project Honduras · $51.2 million • BANK FINANC!NG: $28 mil.lion for 20 years, including 4 1/2 years' grace, with interest at 8.7% per annum, and $7 m!llion on Third Window terms of 25,years, including 7 years'· grace, with interest at 4.7% p~r annum. OTHER FINANCING: Government of Honduras IMPLEMENilNG ORGANIZATIONS: Secreta~!a de Comunicaciones, Obras Publicas y Transporte Tegucigalpa, n.c., Honduras Secretar1a de Recursos Naturales Tegucigalpa, D.c., Honduras PROJECT DESCRIPTION: The projects consists of: a) Reconstruction, including super- vision, of the Talanga-Juticalpa-Catacamas road; b) a study for an integrated development program for the Guayape Valley; c) preparation of a Highway Master Plan; d) purchase of maintenance equipment, including spare parts, workshop, and laboratory equipment; e) Technical assistance for training the staff of the Directorates of Highways and Highway Maintenance, including fellowships; and f) Technical assistance to the local con. struction industry. PROCU.REMENT: The civil works will be carried out by contracts awarded through international competitive bidding in accordance with Bank's guidelines. MCOPT proposes to divide the work into for lots and bids be invited on a "pack~ge" basis. The c.ontractors may bid separately for each lot or for any combination. The estimated cost of each lot varies between $5.5 and $9.5 million. Road maintenance and workshop equipment wi 11 also be procured through international competitive bidding in accordance with Bank~ Guidelines. Consideration will be given to the need for standardization of equipment. Items that cannot be grouped in packages of at least $30,000, and wouJd not in the aggregate exceed the equivalent of $300,000 will be advertised locally. Local procedures will also be applied for the purchase of urgently needed spare parts. and for laboratory equipment which only a few specialized firms supply, up to an aggregate of US$300,000. CONSULTANTS: Consulting services wi 11 be contracted for the prepijration of the Highway Master Plan. • ECONOMIC RATE OF RETURN: 15% for highway reconstruction ESTIMATED COMPLETION DATE: Mid-1981 - 0 -