Announcement of World Bank Lends Twenty-Five Million Dollars for Highway Maintenance in Bolivia on June 5, 1978

FOR. IMMEDIATE RELEASf •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 7 8 /1 0 6 JUNE 5, 1978 WORLD BANK LENDS $25 MILLION FOR HIGHWAY MAINTENANCE IN BOLIVIA A highway maintenance project in Bolivia will be carried out with the assistance of a $25 mill ion World Bank loan. The project is the World Bank's first involvement in Bolivia's highway sector and has an estimated total cost of $36.3 mill ion. The four-year main- tenance program will cover the 15,000-kilometer (km) road network in the districts of La Paz, Cochabamba and Santa Cruz. The road network comprises 40% of the national network but carries about 75% of the total traffic. The project comprises the carrying out of the required maintenance in the three districts~ the acquisition of equipment, vehicles, tools and spare parts; • and the strengthening of the National Highway Service. The preparation of a country-wide highway maintenance, rehabilitation and upgrading program is also included a The Bolivian road network totals 38,000 km, of which 3% is paved, 18% gravel surfaced, and the remaining 79% earth roads. The network is under the jurisdiction of the National Highway Service, a semi-autonomous agency under the Ministry of Transport, Communications and Civil Aeronautics. Project benefits consist of an estimated 12% average reduction of vehicle operating costs, reduction of passenger time and accidents, and prevention of economic loss by avoiding road closures. Significant benefits will accrue to the rural population which is largely depended on road transport services. The $25 mill ion loan to the Republic of Bo] ivia has a term of 20 years, including 5 years of grace, with interest at 7.5% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents • • FORM NO. 1121 (5-76) T E C HN I CAL DA TA PROJECT: COUNTRY: TOTAL COST: Highway Maintenance Bolivia $36.3 million • BANK FI NANC I NG : $25 million for a term of 20 years, including 5 years of grace, with interest at 7.5% per annum. OTHER FINANCING: Government of Bolivia, $11.3 million IMPLEMENTING ORGANIZATION: Servicio Nacional de Caminos (SNC) Avenida 20 de Octubre 1829 La Paz, Bo 1 iv i a PROJECT DESCRIPTION: It comprises: (a) implementation, in the districts of La Paz, Cochabamba, and Santa Cruz, of four-year main- tenance programs (over the period mid-1979/mid-1983) of about 15,000 km of roads, including deferred maintenance of about 2,000 km; (b) acquisition of equipment and • vehicles to complete and expand the maintenance facilities in the three project districts; (c) acquisition of spare parts for preventing maintenance and major over- hauls, and construction 9r expansion of workshops and warehouses; (d) acquisition of training equipment and tools, traffic counters and specialized equipment for the SNC soil laboratory, and of hand tools for labor-intensive maintenance operations; and (e) technical assistance and engineering and economic studies to prepare a program for rehabilitating and upgrading earth, gravel and paved roads. PROCUREMENT: The procurement program for equipment, parts and tools, indicating lot sizes and estimated costs, ,~ill be sub- ject to prior approval by the Bank. Contracts with estimated value of over $50,000 will be awarded through international competitive bidding in accordance with Bank guidelines. Lots with estimated values of less than $50,000, and within an overall ceiling of $1 million, will be advertised locally following SNC's procurement regula- tions, which are satisfactory. When necessary, spare parts for specific makes of equipment, for individual orders of less than $50,000 and within an overall ceiling of $250,000, will be procured directly from established dealers in accordance with SNC regulations. Construction and expansion of workshops and warehouses will also be procured in accordance with SNC regulations and bids will be advertised locally. CONSULTANTS: Fourteen experts (one Road Maintenance Engineer-Project Manager, two Road Maintenance Engineers, two Equipment Specialists, one Transport Economist, four specialists in different fields, and four • Training Specialists) will be required over a four-year project period for a total of about 350 man-months. ECONOMIC RATE OF RETURN: Over 100% ESTIMATED COMPLETION DATE: 1983 - 0 -