Announcement of IDA Approves Five Million Eight Hundred Thousand Dollars for Feeder Roads Development in Togo on May 25, 1978

. FOR IMMEDIATE RELEASE ' .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/76 MAY 25, 1978 LDA APPROVES $5.8 MILLION FOR FEEDER ROADS DEVELOPMENT IN TOGO The I n t e rn a t i on a 1 Dev e 1op men t As soc i at i on ( I DA) , the Wo r 1d Bank ' s affiliate for concessional ,ending has approved a $5.8 mil iion credit to help finance a feeder roads project in Togo. The project includes a four-year program for the construction and improvement of about l ,000 kilometers of feeder roads; technical assistance to establish a Feeder Roads Unit within the Department of Rural Works to implement the above program, to train local staff, and for a study of a fol low-up feeder road program. Some of the quantifiable benefits expected to result from the road • improvements are reduced vehicle operating costs, reduced pre;d1.:ce spoilage and induced increases in agricultural production. Institution building represents a major, unquantifiable benefitft About one-third of the benefits from increased cash crop production are expected to accrue to farmers and the government, while most benefits from increased food crop production will go to the farmers. Benefits from reduction in transport costs are expected to be shared by transporters, traders and the local communities. The $5.8 mi 11 ion IDA credit wil 1 be on standard terms of 50 years, including 10 years of grace, at no interest except for a service charge of 3/4 of 1% per annum for administrative expenses. NOTE: Money figures are expressed in U.S. dollar equivalents • • FORM NO. 1121 (5-76) T ECHN I CA L D A T A PROJECT: • Feeder Roads COUNTRY: The Republic of Togo TOTAL COST: $ 8. 3 mi 1 1 i on IDA FINANCING: $5.8 mill ion (Standa,d IDA terms) OTHER FINANCING: Government of Togo $2.5 mi 1 lion. IMPLEMENTING ORGANIZATION: Ministere de 1 'Amenagement Rural Lome, Togo PROJECT DESCRIPTION: The project includes: (a) a four-year program for the construction and improvement of about 1,000 kilometers of feeder roads; (b) technical assistance to establish a Feeder Roads Unit within the Department of Rural Works to implement the above program and train local staff (87 man-months); and (c) a study of a follow-up feeder road program (4 man-months). Some of the quantifiable benefits expected to result from the road improvements are reduced vehicle operating costs, reduced produce spoilage and induced increases in • agricultural production. Institution building represents a major, unquantifiable benefit. About one-third of the benefits from increased cash crop production are expected to accrue to farmers and the Government while most benefits resulting from increased foodcrop production will go to farmers. Benefits from a reduction in transport costs are expected to be shared by transporters, traders and the local communities. About 48,000 people 1 ive in the project area. PROCUREMENT: Equipment, vehicles, materials and supplies amounting to about $2.0 million (net of taxes) will be procured on the basis of international competitive bidding in accordance with Bank guidelines. These items wil 1 be bulked to the extent possible to make them suitable for international competitive bidding. Goods manufactured in Togo will be allowed the standard pref- erence margin. Contracts for equipment, vehicles, materials and supplies costing under $50,000 wi 11 be awarded on the basis of competitive bidding fol lowing local procedures acceptable to the Association. The aggregate amount of such purchases will not exceed $400,000. Contracts for the construction of drainage structures totalling about $200,000 will follow local competitive bidding procedures acceptable to the Association •. Consultants for technical assistance and for a study of a follow- up feeder road project wi 11 be employed in agreement with and under terms of refer- ence and conditions satisfactory to the Association. • CONSULTANTS: About 4 man-months to supplement the efforts of technical assistance to study a follow-up project. ECONOMIC RATE OF RETURN: 21% ESTIMATED COMPLETION DATE: 1982 - 0 -