Announcement of IDA Credit of Twenty-Two Million Dollars for Road Project in Madagascar on June 17, 1976

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA News Release No. 76/32 June 17, 1976 IDA CREDIT OF $22 MILLION FOR ROAD PROJECT IN MADAGASCAR The International Development Association (IDA), a World Bank affiliate, will support a fourth highway project in Madagascar which wi 11 provide an all-weather direct land connection between the capital city of Tananarive and the western part of the country. The IDA credit of $22 million wi 11 be supplemented by parallel financing provided by the Arab Bank for Economic Development in Africa (BADEA) in the form of a 25-year loan of $5 mi 11 ion. Government contributions wi 11 cover the balance of the project • cost estimated at $31.8 million. Under the project, the 67 km two-lane paved road between Arivonimamo and Analavory will be reconstructed, to help reduce transportation costs. To open up an area with substancial agricultural potential, the IDA credit wi 11 help construction of a 370-km gravel road linking Tsiroanomandidy and Maintirano. The BADEA loan wi 11 finance the foreign exchange cost of the earth works of this road. The IDA credit wi 11 also help finance maintenance equipment, weigh bridges, portable scales and vehicles, and related technical assistance for supervision of construction, some needed studies and personnel training. The credit to Madagascar will be on standard IDA terms: 50 years, including 10 years of grace, at no interest, except for a service charge of 3/4 of 1% to cover IDA's administrative expenses. ~ Note: Money figures are expressed in US dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Fourth Highway Madagascar $31. 8 mi 11 ion • IDA FINANCING: $22 million, standard IDA terms OTHER FINANCING: Arab Bank for Economic Development in Africa, $5 million; Government contribution, $4.8 million. IMPLEMENTING ORGANIZATION: The New Works Department, Ministry of Public Works Tanararive, Madagascar PROJECT DESCRIPTION: Reconstruction of a 67-km two-L~np f''3Verl rnad betv.Jeen Arivonimamo and Analavory (RNl) ~ construction to gravel standards of a 370-km secondary road between Tsiroanomandidy and Maintirano and consulting services for engineering and supervision of construction of this road; • purchase of equipment, spare parts, weigh bridges, portable scales and vehicles, following a study to determine requirements; and training of staff of the Ministry of Public Works. PROCUREMENT: International competitive bidding wi 11 be required for contracts for reconstruction of RNl, construction of all bridges, and purchase of maintenance equipment (except spare parts to be procured locally), weigh bridges, scales and vehicles. The Ministry of Public Works wi 11 carry out earth works for the Tsi roanomandidy-Maintirano road through its force account unit. CONSULTANTS: Consultants wi 1 l be employed to assist in superv1s1ng road construction, a training scheme and a study on the need for maintenance equipment and related facilities. ECONOMIC RATE OF RETURN: 12.2% ESTIMATED COMPLETION DATE: 1980. - 0 - •