Announcement of Co-Financing Agreement for Highway Project in Uruguay on June 28, 1979

. . .. ,, FOR . . IMMEDIATE RELEASE..., .. ' ~ •World Bank 1818.H Street, N.W.: Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE June 28, 1979 CO-FINANCING AGREEMENT FOR HIGHWAY PROJECT IN URUGUAY The World Bank today announced the approval of a co-financing agreement with a Canadian commercial bank to assist in the financing of a highway project in Uruguay. The co-financing agreement is for a $5 million loan from the Bank of Nova Scotia International Limited (Nassau, Bahamas branch) to the Republic of Uruguay. The loan will assist in financing the foreign exchange cost of the Second Highway Project being undertaken by the Ministry of Transport and Public Works (MTOP) of Uruguay. The operation will be associated with a $26.5 million World Bank loan approved on April 17, 1979 • • The highway project is expected to improve the integration of the northern area of Uruguay and the links with neighboring Brazil. With an estimated total cost of $61.2 million, the project will provide for the reconstruction of 140 kilometers of the most heavily traveled portion of Route 8, connecting Montevideo and the Brazilian border. The project will also help improve the ministry's long-term programming and executing capacity for road rehabilitation and reconstruction as well as transport planning and coordination. The loan from the Bank of Nova Scotia has a term of 10 years, including 5 years of grace, with an interest rate of 7/8% per year above the six-month London Interbank Offered Rate (LIBOR). The World Bank loan has a term of 15 years, including 3 years of grace, with interest at 7. 9% a year. The World Bank Loan Agreement with the Republic of Uruguay will include a cross-default clause and~ skewed amortization schedule so that uniform semi-annual payments will amortize both loans. NOTE: Money figures are expressed in U.S. dollar equivalents • •