Announcement of World Bank Approves Sixty Million Dollars for Air and Rail Transport Improvement in Bolivia on May 16, 1977

.World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/102 May 16, 1977 WORLD BANK APPROVES $60 MILLION FOR AIR & RAIL TRANSPORT IMPROVEMENT IN BOLIVIA The World Bank has approved two loans totalling $60 million for improving air and rail transport in Bolivia. Bolivia's transportation facilities are relatively under-developed. Air transport is a vital means of communication due to the difficult topography and low population density of the country. Equally vital to the Bolivian economy is rail transport which hauls most of Bolivia's export trade consisting of mineral products. A Bank loan of $25 million will help finance the construction of two new • domestic airports at Riberalta and San Borja in Beni in the northeast, and major improvements at Santa Ana, also in Beni, and Tarija In the south. Navigational aids and communications equipment will be provided at these airports and at other airports. The aviation project will serve about 100,000 people living in the departments of· Beni and Tarija. These areas have not been able to develop their rich agricultural lands because of their isolation from the rest of the country. Bolivia will gain from a more rapid and reliable transport of passengers and agricultural products. Bolivia's railway system will be further improved with a Bank loan of $35 million for financing procurement of equipment and tools for track rehabilitation freight cars, and workshop equipment, of the Bolivian National Railways (Empresa Nacional de Ferrocarriles -- ENFE). Technical assistance to ENFE includes experts to train personnel in modern operational and administrative procedures. Also, consultant services will be provided to the Government for updating the National Transport Survey and its implementation, and for urge\ y needed training in highway maintenance. The railway project is part of a coordinated program of rehabilitation and modernization designed to enable ENFE to efflclently carry projected traffic. It will thus prevent diversions to more expensive road transport and losses to the Bolivian economy where.the railway is the only means of transportation. United Virginia Bank, Richmond, Virglnia, is participating in this loan. The two Bank loans are for 20 years including a grace period of 4.5 years • and carry interest at 8.2% per annum . NOTE: Money figures are expressed in U9S. dollar equivalents. FORM NO. 1121 (5-76) T ECHN I CAL DA TA PROJECT: COUNTRY: TOTAL COST: Aviation Development Bo 1 iv i a $39.5 million • BANK FINANCING: $25 million for 20 years, including 4.5 years of grace at 8.2% interest per annum. OTHER FINANCING: Government of Bolivia IMPLEMENTING ORGANIZATION: Administracion de Aeropuertos y Servicios Auxiliares a la Navegacion Aerea (AASANA), Casilla 4382, La Paz, Bo 1 iv i a. PROJECT DESCRIPTION: It consists of: construction of two new airports (Riberalta and San Borja), major improvement of two others (Santa Ana and Tarija), provision of navaids, communications equipment at project airports and countrywide, prov1s1on of general and runway maintenance equipment, technical assistance • and training and detailed design of Cochabamba Airport. · PROCUREMENT: Civil works contracts for the Tarija airport has been let (drainage) or is to be let shortly (paving) in accordance with Bank guidelines. All other contracts for civil works, navigational aids, communications equipment and installation will be awarded under international competitive bidding in accordance with Bank guidelines. Local firms are not expected to bid for equipment. Contracts for technical assistance will be negotiated by AASANA and training will be arranged indi- vidually through UNDP/ICAO. The loan includes retroactive financing of up to $1 million for civil works at Tarija and $0.7 million for engineering services for the four project airport; incurred after January 1, 1977. The Bank will finance 56% of civil works costs, 70% of the costs of consultant services and 100% of the foreign exchange cost of equipment, materials, installation, technical assistance and training. CONSULTANTS: Engineering contract (40 man-years) for the final design and supervision of the construction of the four project airports has been awarded to local consultants. Consultants for the detailed design of Cochabamba airport (20 man-years) have not yet been selected. AASANA will negotiate the contracts for the five-man technical assistance team (25 man-years). ECONOMIC RATE OF RETURN: 19% ESTIMATED COMPLETION DATE: 1982 - 0 - •  .,. FORM NO. 1121 (5-76) T E C HN I C A L DA T A • PROJECT: COUNTRY: TOTAL COST: Thi rd Railway Bo 1 iv i a $55. 7 mi 11 ion BANK FINANCING: $35 miilion for 20 years, including 4.5 years of grace at 8.2% interest per annum. OTHER FINANCING: Government of Bolivia and ENFE IMPLEMENTING ORGANIZATION: Empresa Nacional de Ferrocarriles (ENFE), Casilla 428, La Paz, Bolivia. PROJECT DESCRIPTJON: It consists mainly of the 1977-78 portions of ENFE's Five- Year Investment Plan for 1977-81 with emphasis on.ENFE's track rehabilitation. It also includes the Government's updating of the 1969 Bolivia Transport Survey, the implementation of the policy recommendations of the updated survey, • and technical assistance for highway maintenance . PROCUREMENT: Most of the contracts to be financed by the loan wi 11 be procured through international competitive bidding in accordance with Bank guidelines. Direct purchase from the manufacturers of the original equipment will be permitted for critical spare parts. A simplified procurement procedure will be permitted for contracts of less than $50,000 but more than $5,000, up to a total of $500,000. Local procurement procedures will be permitted for contracts of less than $5,000. CONSULTANTS: A) Training ENFE's personnel in operational and admin- istrative procedures (about 200 man-months). B) Updating the National Tran~port Survey (about 200 man-months from about 18 experts). C) Training for hight'fay maintenance (about 72 man-months from 3 experts). ECONOMIC RATE OF RETURN: 18% for the entire Investment Plan • ESTIMATED COMPLETION DATE: 1981 - 0 -