Announcement of Thirty-Two Million Dollars for Tunisia’s Rural Roads on June 29, 1978

.FOR IMMEDIATE RELEASE_ eWorldBank 1818 H Street, N. W., Washington, D.C.. 20433, U.S.A •. T~!e~~on~: (202) 393-6360 BANK NEWS RELEASE NO. 78/120 JUNE 29, 1978 $32 MILLION FOR TUNISIA'S RURAL ROADS • The World Bank has approved a $32 mill ion loan for a rural roads project in Tunisia. The $93.6 million project will establish a pi lot scheme for ra1s1ng the agr.icultural production and standard of living in rural areas by improving about l ,000 kilometers of rural roads and providing comple- mentary agricultural investments. It will provide credit and improved extension services to farmers. Rural road maintenance equipment wil 1 also be procured and technical assistance provided to the Ministries of Public Works and Agriculture. • The project will result in assured and less expensive transport of essential agricultural inputs and crops, and increases of farm income and employment. The Credit Commercial de France (Suisse) S.A., Geneva, Switzerland, has agreed to participate in the first maturity of the loan. The Bank's $32 million loan to the Republic of Tunisia wi 11 be for 17 years, including 4 years of grace. It will carry interest at 7.5% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents • • FORM NO. 1121 (5-76) T ECHN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Rural Roads Tunisia $9 3 • 6 mi l 1 i on • BANK FINANCING: $32 million for 17 years, including 4 years of grace, with interest at 7.5% per year. OTHER FINANCING: Government of Tunisia, $36.4 million Banque Nationale de Tunisie, $14.1 million Sub-borrowers, $ 7.8 million IMPLEMENTING ORGANIZATION: Ministry of Public Works (MPW) Ministry of Agriculture Banque Nationale de Tunisie Tunis, Tunisia PROJECT DESCRIPTION: It will establish a pilot scheme for ra1s1ng the agricultural production and standard of living in rural areas by improving about 1,000 km of rural roads together with complimentary agricultural investments. It will provide credit to farmers, improvement to extension.services, purchases of rural roia.. maintenance equipment, and technical assistance to the Ministries of Public Works and ~ Ag r i cu 1tu re. PROCUREMENT: For the road construction works, unit price contracts will be awarded after· international competitive bidding in accordance with World Bank guidelines. Works have been broken down into suitable lots to encourage participation in bidding from both local and foreign firms and contracts will be awarded per lot or for a combination of lots with a total value of at least 2,500,000 Dinars (equivalent to about $5,750.000). Maintenance equipment contracts would also be awarded after international competitive bidding in accordance with World Bank guidelines. Machinery and equipment to be purchased by the Ministry of Agriculture or its agencies would be procured through local channels on the basis of the best offer out of no less than three offers. The construction of collection facilities and simple workshops would be carried out after local competitive bidding has been announced in the local press. TECHNICAL ASSISTANCE: About 148 man-months of consulting services will be provided under the project for technical assistance, as fol lows: 130 man-months over a period of about two years to assist the Ministries of Public Works and Agriculture in the preparation of an additional 2,500 km of rural roads; 18 man-months to assist the Ministry of Agriculture in the training of extension agents in the introduction of new cropping patterns, including 6 man-months for organizing and conducting seminars • • ECONOMIC RATE OF RETURN: Between 11% and 27% for 18 road sections.so far appraised• ESTIMATED COMPLETION DATE: 1983 - 0 -