Announcement of Project in Jordan Will Relieve Trade Route Bottlenecks on July 12, 1984

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 84/114 Contact: Fawzi Rihane July 12, 1984 (202) 477-5325 PROJECT IN JORDAN WILL RELIEVE TRADE ROUTE BOTTLENECKS Jordan is investing $133 million on a project designed to boost transport capacity on its international trade routes. This will help speed up the shipment of key commodities such as phosphate, potash, fertilizer, cement, and general cargo. The World Bank is financing part of the project with a loan of $30 million. The country's main transport corridor connects the capital city of Amman to Syria to the north, and to the Gulf of Aqaba to the south. This corridor is served mainly by highway and partially by railway. The seaport, Aqaba, is at the northern tip of the Gulf of Aqaba. Air transport serves the two major centers, Amman and Aqaba. The project includes routine and periodic maintenance of the highways. Equipment for maintenance, traffic, and pavement testing will be provided. A 30-kilometer, two-lane alignment on the Aqaba-Amman road, and a 6-kilometer "spur" from the diversion to the port, will be constructed. This road will divert heavy truck traffic from the center of Aqaba. A railway workshop in Aqaba will be expanded to meet the maintenance needs of the country's locomotive fleet. Tracks will be renewed on about 100 kilometers to avoid traffic slowdowns or derailments. Machinery for track renewal, freight wagons, a crane, and spare parts will be provided. Consultants will provide technical assistance to the Ministry of Public Works and the Aqaba Railway Corporation. Consultant services and overseas training will be provided to train the staff of The Ports Corporation (TPC). Training will be related to container, cargo, and shipping operations, phosphate handling and storage, and repair and maintenance of equipment. Other areas to be covered are finance and administration, project planning and maintenance, and safety and fire-fighting. The project is expected to be completed by mid-1989 at a cost of $132.8 million. Besides the World Bank loan, financing is expected to come from the Saudi Fund for Development, the Islamic Development Bank, and suppliers' and export credits. The Government of Jordan and TPC will contribute $75.1 million. The World Bank loan is for 15 years including three years' grace, with a variable interest rate, currently 9.89 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances and a front-end fee of 0.25 percent on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.