Announcement of Liberia Receives Thirteen Million Eight Hundred Thousand Dollars Loan for Highway on May 22, 1978

FOR IMMEDIA1E RELEASE.. I • •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/94 May 22, 1978 LIBERIA RECEIVES $13.8 MILLION LOAN FOR HIGHWAY The World Bank has approved a $13.8 million loan to assist Liberia in continuing to develop its main highway system. The Joan will finance a project to reconstruct and imp-ove two main roads which link Monrovia, the capital, to central and so~th-eastern regions of Liberia. These are the 71-mile Paynesville-Totota and the 28-mile Paynesville-Robertsfield roads. The project also provides for technfcal assistance to develop the capacity of the Liberian Government to plan and execute road maintenance. ft includes a feasibility study of a 152-mile road between Gbarnga and Kolahun and detailed engineering work on two other main roads, the first lfnking Ganta and Sanniquellie and the • other between Ganta and Tapeta • Although Liberia is rich in natural resources, particularly agri- cultural products such as rubber and timber, the road network falls short of the countryts needs both in coverage and capacity. There are only 230 miles of asphalt-surfaced roads and 1,770 miles of all-weather roads in a country with an area of 43,000 square miles. The World Bank and its affiliate, the International Development Association, have so far assisted the Liberian Government in financing three highway projects. The objec- tive of all the projects, including the new one, is to open up the interior of the country for economic development. Most of the roads to be recon- structed under the latest project serve areas of heavy agricultural acti- vities including cultivation of food crops like rice and cassava, and cash crops like coffee and cocoa as well as production of rubber and exploita- tion of timber. The total cost of the project is estimated at about $28.8 million. Apart from the World Bank, the Kuwait Fund for Arab Economic Development is participating in its financing with a loan of about $7.4 million. The Government of Liberia will meet the balance of the project cost of about $7 • 6 mi 11 ion . The $13.8 million World Bank loan will have a term of 20 years, rncluding 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 CA L DA T A PROJECT: COUNTRY: TOTAL COST: Fourth Highway The Republic of Liberia $28.8 million • BANK FINANCING: $13.8 million to be amortized over 20 years, including 5 years' grace, at 7.5% interest per annum. OTHER FINANCING: The Government of Liberia, $7.6 million; the Kuwait Fund, $7.4 million. IMPLEMENTING ORGANIZATION: The Ministry of Public Works, Monrovia, Liberia. PROJECT DESCRIPTION: The project seeks to assist lib~r\a !n continuing to develop its main highway system thrnug~ the r~construction and improve- ment of two main roads which link Monrovia to central r.rnd ~c,uth-ecstern regions of Liberia, Paynesville-Totota (7i miles) and Paynesville-Robertsfi~fd (28 miles). It will also pro- vide technical assistance to continue to develop local capa:-:ity rn plan and execute roa. maintenance. A feasibility study on the Gbarnga-Kolahun road (i52 miles) and detailed engineering work on two other main roads, Ganta-Sanniquellie (25 miles) and Ganta-Tapeta (65 mfles), are also included. The proj~ct also fncludes technical assistance to the Ministry of Public Works to help strengthen its planning capacity. PROCUREMENT: Contractors for the reconstruction and improvement of the Paynesville-Totota road will be prequalified and the contract will be awarded on the basis of international competitive bidding in accordance with Bank guidelines. The contract for the reconstruction and improvement of the Paynesville- Robertsfield road will be awarded on the basis of international comp~titive bidding in accordance with procedures satisfactory to the Kuwait Fund. CONSULTANTS: Consultants will be required for road maintenance services, detailed engineering and feasibility studies, and technical assistance to the Minf·stry of Publlc Woi·ks. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 21% 19cL • - 0 -