Announcement of World Bank to Support Billion Dollar Highway Project in Colombia on April 5, 1982

" . FOR IMMl:-DIA Tf RH f ASf ~ •World Bank 1818 ti Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/V Contact: Ciro Gamarra Apri 1 5, .1982 (202) 477-8034 WORLD BANK TO SUPPORT BILLION DOLLAR HIGHWAY PROJECT IN COLOMBIA A $2.3 billion dollar highway investment program in Colombia will receive the support of a World Bank loan amounting to $152.3 million. Of this amount,93% will come from government resources·. The World Bank's contribution represents about 7% of the cost of the program and 15.6% of the foreign exchange required. The highway project will finance items included in the 1982-86 program of 0 the Ministry of Public Works and Transportation. The program is part of a continuous long-term effort to strengthen Colombia's highway sector institutions a~d to provide the mountainous country with ~etter _road transport. . ,_ • Rehabilitation and paving under the project will involve work on some 6,470 kilometers of roads that require urgent attention. The maintenance portion of the program calls for setting up the Pavement and Equipment Management Systems already intro~uced successfully on a p~lot basis in conjunction with an earlier highway project assisted by the Bank • .. New construction will involve 500 kilometers including urban by-passes, and capacity-increasing works •. The road safety component provides for traffic signs, road markings, a,1d guard rails on 5,400 kilometers of heavily tr~veled roads. Rest areas on M·ghways and vehicle diagonistic centers as well as a safety training facility and instruct iona 1 program are also to be provided •. Technical assistance including studies will be provided to strengthen the Ministry of Public and Works and Transportation. The project, which is estimated to cost a total of $2,331.5 million,will be carried out by the Fondo Vial Nacional (National Highway Funds), the ~orrower of the Bank loan. The World Bank loan has the guarantee of the Colombian government. It is for 17 years, including four years of grace, with interest at 11.6% a year~ .The lea~ also carries an annual conmitment charge of 0.75% on undisbursed balances,· and·a front-end fee of 1.5%. · Including this loan, the World Bank has approved a total of $258.6 million for highway development in Colombia. The amount includes a credit of $19.5 mill ion, the only credit to Colombia from the International Development Association (IDA), the World Bank's affiliate for concessionary lending. NOTE: Money figures are expressed in U.S. dollar equivalents.  T E C H N l CA L DA T A PROJE.CT: C.OUNTRY:. ~ 'I "l Highway Sector Colombia ··: TOTAC COST: $2,331.5 million BANK Fl NANC I N.G: $152.3 mi 11 ion for 17 years, including four y~ars of grace, at 11.6% interest per annum; and annual conmitment charge of O:J75% on undisbursed balances, and a front-end fee of 1.5% on the amount of the loan OTHER FINANCING: Fondo"Vial Naciona1. (Gasolin~ Tax Revenues, $1,683 million; co.:.fi nanc i ng, $216. 5 mi 11 ion; Government Appropriations, Transfers, and To11s, $279. 7 mi 11ion) :, IMPLEMENTING ORGANIZATION: Fondo Vial Nacional (National Highway Fund) Ministerio de Obras Publicas y Transportes (MOPT)-CAN Bogota, Colombia TELEX: MOPT-FVN 45656-DMOPT-CO PROJECT DESCRIPTION: The loan includes: a) rehabilitation, paving, and new con- struction contracts; b) maintenance equipmeni; c) studies; and d) technical assistance. • PROCU.REMENT.: The contracts for civil works (construction, rehabilitation, paving, and safety structures) and the purchase of equipment financed by the loan wi11 follow international competitive bidding procedures and the Bank's guidelines. The contracts for studies and technical assistance will also be awarded fo 1·1 owing satisfactory guide 1i nes. CONSULTANTS: Technical assistance to strengthen MOPT 1 s planning capacity and for research, supervision, safety, modal coordination, decentralization, and staff training. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: Minimum of 12% 1986 - 0 - •