Announcement of Fourteen Million Dollars for Highway Development in Burundi on March 2, 1978

FOR IMMEDIATE RELEA-SE. •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/43 MARCH 2, 1978 $14 MI LL ION FOR HIGHWAY DEVEL.OPMENT IN BU RUND I The International Development Association (IDA), an affiliate of the World ·sank, has approved a $14 million credit to a Second Highway Project in the Republic of Burundi. Reduced internal transport costs and assurance of all-season access to agricultural areas and markets, particularly Bujumbura, the capital, will be among the project's direct benefits to the Burundi farmers. The improvement of the road network will accelerate the marketing of foodcrops produced in the areas of influence of the roads. In addition it will • facilitate the implementation of the Government's storage and marketing program. This program is designed to promote the marketing of food sup- plies from surplus areas. The production of crops such as coffee and tea will also benefit considerably from road improvement. The project will be implemented by the Ministry of Public Works, Equip- ment and Housing. Its objective is to assist the Government in financing the construction of a major road, road improvement and betterment works as well as the continuation of the road maintenance program started in 1974 under the Highway Maintenance Project. The Arab Bank for Economic Development in Africa (BADEA) will parti- cipate in the financing of the project with $6.1 million. The Federal Republic of Germany and the United Nations Development Programme (UNDP) will provide a grant of about $800,000 and $900,000 equivalent, respectively. The $14 million IDA credit to the Republic of Burundi will be for a 50-year term, including 10 years of grace. It will be interest free but will carry a service charge of 3/4 of 1% to cover 1DA 1 s administrative expenses • • NOTE: Money figures are expressed in U.S¥ dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Second Highway The Republic of Burundi $24 mi 11 ion • IDA FINANCING: $14 million, standard IDA terms OTHER FINANCING: The Arab Bank for Economic Development in Africa (BADEA), $6. 1 million; Federal Republic of Germany, $800,000 (grant); United Nations Development Programme (UNDP), $900,000 (grant); Government of Burundi, $2.2 million. IMPLEMENTING ORGANIZATION: Ministry of Public Works, Equjpment and Housing, Bujumbura, Burundi PROJECT DESCRIPTION: The project consists of: construction of the Bujumbura- Cibitoke-Rugombo road (65 km) to two-lane bituminous standards; improvement of the classified road network by replacement of bridges in poor state of repair, stabilization of steeply graded road sections and road improve- ment; technical assistance and consultants• services; procurement of road maintenance. equipment; and improvement of the Ministry of Public Works Laboratory. PROCUREMENT: The contracts for the main road construction ($11.5 mi 11 ion), road maintenance equipment, the stabil izat:on of steep grades and the upgrading of the 57 km of earth tracks to low standard gravel roads will be let following international competitive bidding. Prequal ification of contractors for the main road construction is being carried out by the Government~ Should the 1 ist of prequal ified contractors be acceptable to both IDA and BADEA, the construction of the road will be financed jointly. Otherwise, two separate contracts for distinct road sections would be concluded. The improvement of 370 km of earth tracks and the construction of 21 bridges and the reconstruction of the laboratory building will be carried out by force account. CONSULTANTS: In the process of being selected. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 20% 1981 - 0 - •