Announcement of Colombia’s Rural Roads Program Receives World Bank Assistance on April 2, 1981

,. FOR. IMMEDIATE RELEASE ., .world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/ 68 Apri 1 2, 1981 COLOMBIA'S RURAL ROADS PROGRAM RECEIVES WORLD BANK ASSISTANCE Many of Colombia's isolated agricultural areas will be better integrated into the national economy by a rural roads program supported by the World Bank. The Bank has approved a $33 million loan to help finance the first phase of the investment program of the National Feeder Roads Fund (FNCV). The rural roads project has an estimated total cost of $63 million and is part of FNCV's 1981-84 investment program. The project wi 11 assist the ·govern- ment in its efforts to foster agricultural development by facilitating farmers' access to markets and social services, and by lowering transport costs through the construction and rehabilitation of rural roads. The project consists of the engineering and construction of about 710 kilometers (km) of rural roads and the rehabilitation of another 710 km. It • also includes the purchase of hand tools for labor-intensive maintenance and the provision of maintenance equipment and spare parts. Technical asistance to improve FNCV's management information system is also provided. The project wi 11 help to integrate isolated agricultural areas and to im- prove maintenance of rural roads. It will also improve the rural population's access to essential services such as medical and veterinary facilities, schools, agricultural extension, marketing cooperatives, credit agencies, and equipment suppliers. Finally, the project wi 11 also contribute to the generation of local employment. The road maintenance program wi 11 contract, through local municipalities, peasant workers to maintain the roads. Each peasant worker will be responsible for maintaining an average of 5 km of road section and will receive an annual salary of $253 per km plus hand tools. By 1984, some 470 peasant workers are expected to be maintaining 2,330 km of rural roads. In larger works, they will be supported by heavy equipment provided by the government. The $33 million World Bank loan to FNCV has the guarantee of the Republic of Colombia. It is for a term of 17 years, including 4 years of grace, with interest at 9.6% per annum. NOTE: Money figures are expressed in U.S. dollar,equivalents . • FORM NO. 1121 (5-76) T E C HN I CA L D A T A • PROJECT: Rural Roads COUNTRY: Colombia TOTAL COST: $63 million BANK FINANCING: $33 million for a term of 17 years, including 4 years of grace, with 9.6% interest per annum OTHER FINANCING: Fondo Vial, $30 million IMPLEMENTING ORGANIZATION: Fondo Nacional de Caminos Vecinales (FNCV) Avenida Caracas 6357 Bogota D.E., Colombia Telex: 45860 PROJECT DESCRIPTION: It consists of: (a) construction of about 710 kilometers (km) of rural roads; (b) rehabilitation of about 710 km; (c) engineering for about 710 km; (d) purchase of hand tools for labor-intensive maintenance; (e) procurement of maintenance equipment and related spare parts; and • (f) technical assistance to improve FNCV's management information system. PROCUREMENT: Equipment totalling $8.74 million will be procured under international competitive bidding in accordance with Bank guidelines. The contracts for construction and rehabilitation of rural roads will be small and the civil works, engineering, supervision and hand tools, therefore, wi 11 be procured locally under competitive bidding procedures which are acceptable to the Bank. Finally, FNCV may contract directly the project's technical assistance because it is for a small amount. Force account may be required for works in geographically remote areas. CONSULTANTS: About 10 man-months of consulting services will be required, including one highway engineer with highway management ex- perience and one public administration specialist. • ECONOMIC RATE OF RETURN: 11% ESTIMATED COMPLETION DATE: 1984 - 0 -