Announcement of IDA Provides Thirteen Million Dollars to Guinea for Second Highway Project on September 20, 1979

FOR- IMMEDJ.ME-RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 80/7 September 20, 1979 IDA PROVIDES $13 MILLION TO GUINEA FOR SECOND HIGHWAY PROJECT The International Development Association (IDA), the soft-loan affiliate of the World Bank, has approved a $13 million credit to help improve roads in the Revolutionary People's Republic of Guinea. The $31.9 million Second Highway Project includes a three-year program for the rehabilitation of 1,548 kilometers (km) of high-priority primary and secondary roads. It also extends highway maintenance to cover a highway net- work of 4,622 km. Provision is also being made for fellowships and technical assistance for the staff of the Ministry of Public Works (MPW) in order to improve the sectoral planning and execution capacity of the ministry. The existing soils laboratory in Conakry and its equipment will be renovated and technical assistance wi 11 be provided for staff training . • The project also includes provision for consultants to prepare a feasibility study and detailed engineering for reconstruction of sections of the Conakry-Mamou road. This road is part of the Conakry-Kankan corridor which has traditionally been the main road artery in the country. The con- sultants will train MPW staff ln order to strengthen MPW pl~nning and design capabi 1 ities. ·· The project is expected to result in savings in vehicle operating costs and improve the mobility of goods and people in Guinea. Co-financing for this project in the amount of a $4 million credit is being provided by the European Economic Community's (EEC) Special Action Account and a $6 million loan is being extended by the Arab Bank for Economic Development in Africa (BADEA). The Government of Guinea will provide $8.9 million for the project. The IDA and EEC credits will be for 50 years, including 10 years of grace. They will carry no interest, but wi 11 bear a service charge of 0.75% per annum to cover administrative costs. The BADEA loan is for a term of 16 years, including 4 years grace, with interest at 4% per annum plus a service charge of 0.5%~ • 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: Second Highway The Revolutionary People's Republic of Guinea $31 . 9 mi 11 ion • IDA FINANCING: $13.million, supplemented by $4 million from the EEC Special Action Account for 50 years, standard IDA terms OTHER FINANCING: $6 million from Arab Bank for Economic Development in Africa (BADEA); $8.9 million from the Government of Guinea, IMPLEMENTING ORGANIZATION: Ministry of Public Works (MPW) P.O. Box 295 Conakry, Guinea Cable Address: MINISTRAVO-CONAKRY PROJECT DESCRIPTION: It consists of a three-year program of road rehabilitation (l ,548 km) and maintenance (4,622 km including the 1,548 km), strengthening of the National Public Works (Soi ls) Laboratory, and pre investment studies for reconstruction of some sections of the 250-km Conakry-Mamou road, Specifically, the project provides for: (a) purchase of highway and workshop equipment and spare parts; fuel, materials, and supplies for the operating costs of road rehabilitation and incre- ~ ~ental recurrent costs of highway maintenance; and fellowships and the continuation of technical assistance to MPW for project implementation and training (243 man-months); (b) renovation of the existing soi ls laboratory and its equipment, and technical assist- ance for training its staff (36 field man-months); and (c) consultant services for pre- paring a feasibi 1 ity study and detailed engineering for reconstruction of the Conakry- Mamou road; in carrying out this study, consultants would train MPW staff counterparts who would form the nucleus of a new Studies and Programming Division. PROCUREMENT: Items to be financed by IDA will be procured on the basis of international competitive bidding in accordance with Bank guidelines. New highway and workshop equipment and spare parts for existing MPW equip- ment to be financed by the EEC Special Action Credit wi 11 be procured from the original suppliers or from other eligible sources, according to the procurement rules applying to the EEC Special Action Account. Equipment and materials to be financed in parallel by BADEA will be procured according to its procurement rules. Equipment or groups of the same items of equipment with a value of less than $50,000 but in the aggregate. not exceeding $300,000 may be procured on the basis of quotatTons fr·om loc·al suppl 1ers or, where appropriate, by limited international tendering. The possibility of pro- curing cement through limited international tendering wi 11 be explored. Construction of the Directorate General of Roads and Bridges (DGRB) office and workshops and the labora- tory building (~bout $700 1 000) will be executed by DGRB and contractors selected after local advertislng and competitive bidding in accordance with procurement procedures of the government, acceptable to IDA, CONSULTANTS: The government intends to retain the services of consu 1tan ts • Louis Berger lnternationcd, lnc./Tractionel (USA/Belgium) to cont{nue providing technical assistance for the road rehabilitatton and maintenance program begun under the First Highway Project. The government also intends to select • • - 2 - CEBTP {France), which prepared the project 1 s soils laboratory component, to provide equipment and technical assistance to the National Public Works Laboratory. The preinvestment studies of the Conakry-Mamou road wi 11 be carried out by qualified and experienced consultants assisted by MPW staff counterparts. ECONOMIC RATE OF RETURN: 37% ESTIMATED COMPLETION DATE: • •