Announcement of Bank and IDA Provide Eight Million Dollars for Roads in Malagasy Republic on October 30, 1968

INTERNATIONAL BANI{ FOR ~~-..;Ht.01,.1,,..I RECONSTRUCTION AND DEVELOPMENT • IN.TERNATIONAL DEVELOP~fENT ASSOCIATION (~) 18 18 H ST R E ET. N W WASHINGTON D.C.20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 68/60 Subject: Bank and IDA provide $8 million IDA Press Release No. 68/28 for roads in Malagasy Republic October 30, 1968 The World Bank Group, continuing. its assistance to the Malagasy Republic in developing a modern highway network, has approved financing of $8 million for this purpose -- a World Bank loan of $3.5 million and a $4.5 million credit from the International Development Association (IDA). Because of the size of Madagascar, the world's fourth largest island, its rugged terrain and the small, unevenly distributed population, the build-up of a road network adequate for the requirements of economic development has been • a major prGiJlem. While the Government ha.s made considerable investments in road improvements in recent years, it is now giving more emphasis to projects which are directly related to the development of various productive sectors. The roads now being financed give support to this policy in that they will con- tribute to agricultural development in parts of the Central Plateau, which is the most heavily populated region, and in the northwest. The project comprises the construction of two roads totaling 88 miles and three major bridges. One of the roads, extending 33 miles between Fanjakaman- droso and Tsiromandidy, will considerably improve the connections between a rich agricultural area and the main cattle market, Tsiromandidy. The other road, between Ambilobe and Ambanja, is in an area which grows crops for export; it is also part of the future trunk road which is to link the virtually isolated • /more Bank No. 68/60-Malagasy Republic-Roads IDA No. 68/28 - 2 - northern regions of Madagascar with Tananarive, the capital. will be at the southern end of this road section. One of the bridges The other two bridges will be • on the eastern coast and will improve connections with the port of Tamatave. A master plan for the development and expansion of Tamatave, the largest of the Republic's four principal ports, is now being prepared under a World Bank tech- nical assistance grant of $196,500. The project is scheduled for completion by the end of 1971 at a total esti- mated cost of $11.5 million. The Bank loan and IDA credit will finance the foreign exchange requirem$nts. The Government will meet the remaining costs. The World Bank loan will be for a period of 30 years including 10 years of grace, with interest at 6-1/2%. The credit will be for a term of 50 years, also with a 10-year grace period. It will be free of interest but a service charge of 3/4 of 1% will be made to meet IDA's administrative costs. An IDA credit of $10 million to the Malagasy Republic in 1966 is assist- • ing the construction of road sections to complete the trunk highway from Tananarive to the port of Majunga. - 0 - •