Announcement of World Bank Approves Thirty-Five Million Five Hundred Thousand Dollars Loan to Tunisia for Rural Road Improvement on March 25, 1982

0 FOR IMMEQIATf RELEASE . . ·•. ~.I '[ ..· ·. · ·.·· . . ·, >eWorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Tel~phone: (202) 477-1234 BANK NEWS,,,,-RELEASE NO. 82/60 Contact: Melhem Salman Ma.rch 25 , 1982 (202) 477-5328 WORLD BANK APPROVES $35.5 MILLION LOAN TO TUNISIA FOR RURAL ROAD IMPROVEMENT A Wor1d Bank loan of $35.5 million to Tunisia will help the government continue its efforts to provide farmers with improved roads, support services, and farm credit. The World Bank first provided a loan, of $32 million, in July 1978 to start an fntegrated program of rural roads construction for promoting agricultural and rural development. Work on some 800 kilometers of the 1,000 kilometers of rural roads in the program is underway or has been completed. Construction of 23 out of 50 extension centers is underway and agents have been assigned to their areas. With its own funds, the National Bank of Tunisia (Banque Nationale de Tunisie) made in 1980 some 1,560 short-term loans to farmers, a three-fold increase over previous levels, and up to September 30, 1981, about 660 longer term loans, a two-fold increase, in four areas. _ The ~econd loan for rural "."O~d~. wi 1~ ..be _us~ct tQ_h~l,p__finance the.expansion. of t~ese oper~tion~. Some 1,200 kilometers on about 100 road sections throughout the country will be improved. To assist farmers, 55 extension centers wi11 be constructed and equipped. Credit will be provided by the National Bank of Tunisia which has received Bank financing amounting to $50 million (including a credit of $3 million from the International Development Association) for providing agricultural credit. Consultant services to assist the Highway Department and the Ministry of Agri- culture will be provided. Some 200,000 rural people are expected to benefit from the various operations carried out under the project. This number,represents about 6% of Tunisia's rural population. The World Bank loan for the Fifth Highway (Rural Roads) Project is for 17 years, including four years of grace, with interest at 11.6% a year. Also_ included in its terms are an annual conmitment charge of O. 75% on undisbursed balances and a front-enc} fee of 1.5% on the amount of the loan. () The loan brings lending to Tunisia from the World-Bank and the International Development Association to a total of $1,039.3 mi 1lion. The five highway projects, including the present one, account for $156 million in loans from the World Bank itself. NOTE: Money figures are expressed in U.S. dollar equivalents • •  0 T;E C ff NI CAL DAT A P.ROJECT: COUNTRY: TOTAL COST: Tunisia Fifth Highway (Rural Roads) Tunisia $104.8 million • BANK F I NANC I NG : H $35.5 mill ion for 17 years, including four years of grace, at interest rate ,,of 11.6% 'per annum; t.~~·:loan also carri~s 0 an annual commitment chargeof&.75% on undisbursed balances,· and a front-end fee of 1.5% on the amount of the loan OTHER FINANCING: Go~1ernment of Tunis;a, $57.6 million; Nat\ional Bank of Tunisia, $8.8 million; farmers' contribution, $2.9 million IMPLEMENTING ORGANIZATION: Mini stere de V Equipment Ministry of Public Works Cit6Jardin Tunis, Tunisie TELEX NO. 12428 TPHTN \', PROJECT DESCRIPTION: It consists of: i) rural road improvement; ii) agriculturijl extension and credit services; iii) improved ~ural road maintenance; iv) spot improvements to feeder roads; v) equipping five vehicle insp~ction st3tions; and vi) technical assistance. \\ PROCUREMENT: 'Road construction contracts based on unit prices will be awarded after international competitive bidding (ICB) in accordance with Bank guidelines. Roads will be grouped in lots of at least $1 million for bidding. Contractors will be prequalified to undertake either single or several lots. Se~eral lots will be grouped for tender calls to a minimum value of $6 million to make bidding attractive to both smaller and larger contractors who will be allowed to bid for one or more:.Jots, or for a group as a whole. Equipment to be procured with Bank financing consists of vehicles for agricultural extension services; agritultural equipment for ex- : tension demonstrations; audio-visual equipment for training; and equipment for vehicle inspection stations. For bid evaluation purposes, a 15% margin of preference or an amount equal to customs duties, wh,chever is lower, will be applied for equipment manufactured in Tunisia. To the extent practical, equipment will be grouped into packages for tender- ing. Packages estimated to cost more than $100.,000 wi 11 be procured under ICB in accord- ance with Bank guidelines. CONSULTANTS: Consultant services (325 man-months) will be required for project preparatjon, sup~.rvision, and monitoring; agricultural extension training; researsh on materia'1s, constructi'on techniques, and maintenance techniques for unpaved roads; and a study of the socio-economic, agricultural, and tnms ... port impact of rural roads. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 21% for first-year investments '1986 - 0 - •