Announcement of IDA Approves Credit for Third Highway Project in Burundi on May 4, 1981

FOR 1MME~IAT~, RELEASE " . ..world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.•· Telephone: (202) 477-1234 IDA NEWS RELEASE N0.81/74 May 4, 1981 IDA APPROVES CREDIT FOR THIRD HIGHWAY PROJECT IN BURUNDI Communications between the capital city of Bujumbura and the provinces of Ngozr and Muyinga will be improved under a third highway project in Burundi, to be assisted by a credit of SOR 20.5 million ($25 mill ion) from the International Development Association (IDA). IDA is the World Bank's soft-loan affiliate. Under this project, a 39.4 kilometer (km) section of the Ngozi-Kobero road in the north of Burundi will be paved and some 360 km of dirt roads will be upgraded to a low gravel standard. Equip- ment, tools, and vehicles for maintenance brigades, as well as consultant services for staff training and studies, will also be • provided with proceeds from the IDA credit . The project is designed to improve road maintenance and to strengthen transport planning and operations. The reduced transport costs which are expected to result will benefit a densely populated coffee-grow i'ng region, in the case of the Ngoz i -Kobe ro section, and various planned agricultural projects along the gravel roads. The project will also contribute to the development of an alternative external route to the port of Dar-es-Salaam in Tanzania. The Government of Burundi will provide $6.2 million to the total project cost of $35 mill ion. Co-financing will be supplied by Japan ($2 million); France ($300)\000); Belgium ($1 million); and the United Nations Development Programme ($500,000). The IDA credit is for 50 years, including 10 years of 9race. It is interest-free, except for a service charge of 3/4 of 1% per annum to cover the Association's administrative costs. The credit wi11 be committed when funds are available. NOTE: IDA credits are denominated in SDRs (Specia1 Drawing Rights), which are va 1ued on the basis of a "basket" of currr::.nc i es. The U.S. dollar equivalent of the SDR amount of the IDA credit • reflects the exchange rates existing at the time of negotiation · of the credit . FORM NO. 1121 (5-76) T EC HN I CA L DA T A PROJECT: COUNTRY: TOTAL COST: Third Highway Burundi $35 million • IDA FINANCING: SOR 20.5 mill ion ($25 mill ion), standard IDA terms OTHER FINANCING Government of Burundi, $6.2 mill ion; Administration Generale de la Cooperation au Developpement Belgium, $1 million; Government of Japan, $2 million; Government of France, $300,000; United Nations Development Programme, $500,000 IMPLEMENTING ORGANIZATION: Ministere des Travaux Publics (Ministry of Public Works) B. P. 1860 Bujumbura, Burundi PROJECT DESCRIPTION: The project will consist of the: (a) construction to paved standards of a 39.4 kilometer (km) section of the Ngozi-Kobero road; (b) the improvement to low gravel standards of 360 km of secondary and tertiary roads; (c) the procurement of equipment for two mechanized maintenance brigades and acquisition of tools, vehicles,and camp equipment for the ongoing manual • maintenance program; (d) consultant services to supervise the road construction pro- gram and technical assistance services for the road improvement component, the manual and mechanized maintenance programs, the training of staff, and to conduct a study to define a five-year paved road rehabilitation and maintenance program; and (e) technical assistance to the new planning units of the Ministere des Travaux Publics and the Ministere des Transports et des Communications. PROCUREMENT: The contract for main road construction will be subject to international competitive bidding (ICB) in accordance with World Bank/I DA ~uidel ines. Improvement of the secondary and tertiary road networks will be carried out by force account and by local contractors following local competitive bidding procedures acceptable to IDA. Equipment financed under the project will be grouped into major Jots and procured by ICB according to Bank/lDA guidelines. CONSULTANTS: Supervision of main road construction will require about 90 man-months·of consulting services. In addition, the preparation and supervision of road improvements will require about 40 man-months of consulting services. Among these experts will be: two technical experts specialized in labor-intensive construction methods, a transport economist to assist the Ministere des Travaux Publics in the planning and programming of road investments; and an expert for the Ministere des Transports who will help elaborate transport deveiopment policies. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 19% 1985 - 0 - •