Announcement of World Bank Loan of Twenty-Six Million Five Hundred Thousand Dollars for Highways in Uruguay on April 19, 1979

FOR IMMEDIAlE RELEAS;E ~ - . ., ~ eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/77 Apr i 1 19, 1979 WORLD BANK LOAN OF $26.5 MILLION FOR HIGHWAYS IN URUGUAY The World Bank has approved a $26.5 million loan to Uruguay to help finance the reconstruction of the most heavily travelled portion of Route 8, an important link between Montevideo, the country's capital and main port and neighboring Brazil. The section to be reconstructed as a modern road lies between Punta Rieles, Km 13 from Montevideo and Arroyo Marmaraja, at Km 153. The first 17.5 km, extending the existing four-lane road to the northeast of Montevideo, will be upgraded to four-lane standards, and the remainder will be reconstructed to two-lane standards. An important feature of the project is the contracting of • consulting services for the supervision of civil works, to prepare a four-year program of the rehabilitation, strengthening and reconstruction of national highways, and the preparation of a high priority bridqe improvement program. Additional consulting services to be provided under the project will help prepare detailed engineering for the roads to be included in the first two years of the four-year program. This component is expected to include sections of the international routes to Argentl~a through Fray Bentos, Paysandu and Salto serving important agricultural zones. Technical assistance will also be provided on matters related to transport planning policies. The project, with an estimated total cost of $61.2 million, will be implemented by the National Highway Directorate (Vialidad) and in the case of the technical assistance component by the National Directorate of Transportation, both of the Ministry of Transport and Public Works. The World Bank loan of $26.5 million is being made to the Republic of Uruguay for a term of 15 years, including three years of grace, at 7.9% annual interest. • 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: Highway Uruguay $61. 2 mi 11 ion • BANK FINANCING: $26.5 mi 11 ion for a term of 15 yea rs, including 3 years of grace, at 7.9% interest per annum. OTHER FINANCING: Government of Uruguay iMPLEMENTING ORGANIZATION: The Highway Directorate (Vialidad) of the Cable: Ministry of Transport and Public Works Vialidad Calle Uruguay con Rondo Montevideo Montevideo, Uruguay tlruguay PROJECT DESCRIPTION: Reconstruction as a modern road of the most heavily trav- elled portion (140 km) of Route 8, an important link with Brazil, from Punta Rieles, Km 13 from Montevideo, to Arroyo Marmaraja 9 Km 153. The project includes upgrading to four-lane standards a 17.5-km section to the northeast of Montevideo and the reconstruction of the remainder to two-lane standards. • PROCUREMENT: To be carried out in accordance with the Bank's guidelines. Civil works will be carried out on the basis of unit price contracts awarded under international competitive bidding. Individual contracts will range from $5 million to $10 million, so that medium capacity local contractors have an opportunity to bid. The civil works will be divided into four lots to be bid simultaneously. To facilitate participation by large contractors, bidders wi 11 be allowed one or more lots. CONSULTANTS: Consulting services will be contracted to prepare a four- year program of rehabilitation, strengthening and recon- struction of national highways. The project also provides consulting services. to prepare detailed engineering for the roads included in the first two years of the four-year program. Additional consulting services w;ll provide technical assistance to strengthen and Jmprove transport sector planning. ECONOMIC RATE OF RETURN: 20% ESTIMATED COMPLETION DATE: 1983 - 0 - •