Announcement of IDA Approves 10.5 Million Dollars for Mali’s Railway on May 19, 1977

.world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. •. Telephone: (202) 393·6360 IDA NEWS RELEASE NO. 77/59 MAY 19, 1977 IDA APPROVES $10.5 MILLION FOR MALI'S RAILWAY Mali's rai'lway investment plan will be supported by a $10.5 million credit approved by the International Development Association (IDA),. an affiliate of the World Bank. The credit will finance: the rehabilitation of railway track and bridges, telecommunications improvement, procurement of .locomotive power and of workshop equipment and finally consulting services and training. The railway, the only mode of transport in the western part of Mali, provides a link between Bamako and Kayes -- Mali 1 s second largest city -- • and numerous small towns and villages in between. It also provid~s practi- cally all domestic passenger and freight transport to the Senegalese border. Its main activity rs carrying international traffic to and from Dakar, Senega 1 . Continued operation of the railway, reduced maintenance and opera- ting costs, new equipment and substantially increased capacity for petroleum traffic will be Mali's benefits from the project. The Fond d~Aide et de Cooperation (FAC), the Caisse Centrale de Cooperation Economique (CCCE), the Compagnie Francaise d'Assurance pour le Corrrnerce Exterieur (COFACE), and the Canadian f ntt:rnational Development Agency (CrDA} are providing $1 ,9 million, $5,3 million, $3.6 million, and $5,3 million respectively. The $10.5 fDA credit to Mali is for 50 years, including a 10-year • grace period. It is interest-free, except for a service charge of 3/4 of percent to meet IDA's administrative costs. NOTE: Money fi~u~~s ar~ expressed in U.S. dollar equlvalents. FORM NO. 1121 (5-76) T ECHN I CAL Q. AT A PROJECT: 'COUNTRY: TOTAL COST: Third Railway Project Hali $28.2 • IDA FINANCING: $10.5 mil lion (standard) Re-1endi ng 7_e_r..!11_s_: The proceeds of the credit will be re-lent to Chemin de Fer du Mali (CFM) at 6 percent inter.est f9r a term of 20 years, with a grace period of 4.S·years. OTHER FINANCING: Fond d I Ai de et de Cooperation ( FAC) Canadian International Development Agency (CIOA) Regie de Chemin de Fer du Mali (CFM) IMPLEMENTING ORGANIZATION: Regie du Chemin de Fer du Mali (CFM) (ful i address please) PROJECT DESCRIPTION: The· project includes: track imp~ovements, the rehabi Jitation and strengthening of bridges, improvement ·of telecorrmunicationss the procurement of locomotive power and rolling stock, the procurement of equipment for workshops, and consulting services and training. • PROCUREMENT: Track renewal, ballasting and rail joint welding wi11 be per- formed by CFM's own staff which produced an acceptable quality of work under the two previous projects. Bridge repairs and reinforcements \.Ji 11 he exe- cuted by an ~xperienced firm, to be selected following the Association's guidelines on international comp·etitive bidding, except for minor related works and material in a total amount not exceeding US$940,000 e~uivalent. Execution of bridge rehabilitation and rein- forcements will be supervised by Sofrerail experts. Track maintenance equipment may be pur- chased by international shopping. Spare parts for track maintenance machinery wi 11 be pur- chased from the original supplier. For fhe rehabilitation of traininq facilities competi- tive bidding advertised locally and in accordance with local procedures acceptable to the Bank will be follO'vved. The consultants and instructors providing ·technical assistance and training courses respectively will be selected on terms and conditions acceptable to the Association. The cost of items not subject to international competitive bidding will be reviewed by the Association on the basis of internatiohal mar~et prices. The items being financed under bilateral aid and supplier credits \.'Jill follow donor's guidelines. CONSULTANTS: Total consultant's services will amount to 65 man-months. 38 man-months oftechnical assistance to CFM to study and recom- mend measures for improving operations along the international line from Dakar-Bamako. ECON OM IC RATE OF RE;TURN: ESTIMATED COMPLETION DATE: 23% 1982 - 0 - •