Announcement of China Builds Major Highway in Shandong Province on May 26, 1989

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. 89/80 Contact: Leandro V. Coronel IDA NEWS RELEASE NO. 89/76 (202) 477-3641 CHINA BUILDS MAJOR HIGHWAY IN SHANDONG PROVINCE WASHINGTON, May 26, 1989 -- China will relieve congestion on the heavily used roads between Jinan, the capital of Shandong Province, and Qingdao, one of the country's major ports, by building a 319-kilometer highway. The project is supported by a $60 million loan from the World Bank and a credit of SDR 38.8 million ($50 million) from the International Development Association, the Bank's concessionary affiliate. Construction of the four-lane divided highway supports the government's overall plan to expand and modernize the transportation system. Road transport demand, in particular, has increased significantly in recent years and the accelerated development of the road network is of high priority. The project includes evaluation of pavements for the development of a pavement strengthening and maintenance management program. Other components include setting up a road-data bank to improve road planning and procurement of equipment for road maintenance, traffic monitoring and road research. The government is contributing $40.5 million and the province $273 million toward the cost of the $423.5 million project. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.65 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent of the undisbursed balance. The IDA credit is for 35 years, including five years of grace; it carries no interest, and has an annual charge of 0.75 percent on the disbursed balance and a variable charge of up to 0.5 percent (currently zero percent) on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents. IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of the negotiation of the credit.