Announcement of Twenty-Five Million US Dollars Loan to Argentina for Road on June 26, 1969

:"", ,, 1~ .:~ .. . RE.LEASE FOR IMMEDIAT5 .,, • J1 N··· Tr""Rf\.I A "ri()NA . t'_ I l "( i-'\ i I~ . \, L BANK . r:;:f""'\n !, \,J r\ . RECONSTRLJC:1~1 ON AND DEVELOPMEN-r . 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 69/52 Subject: $25 million loan to Argentina June 26 ,, 1969 for Road~ The ~World Bank is making a loan equivalent to $25 million to Argentina to assist in financing a project which includes :the improvement of four· sections of primary roads totaling about 500 miles and several measures designed to lay the foundation for_sound planning of future development of th~. Argentine highway system. ~uenos Aires as a center of population, export trade, industry and cQmmerce he.s determined the traffic pattern of Argentina. The capi.tal city_.i_~_.t~~ foe.al ····---·-"" ' poin:t, for railways, roads and shipping. Road transport .now accounts for a much larger share of traffic than the railroads. While the road system, which in- • eludes a national. and provincial primary network of about 85,000 miles, is gener- ally sufficient for traffic requirements,,· ther~ is need for selective improvement an(i better administration, planning and .coordination. The roads to be upgraded and paved form parts of two arterial highways: one will replace an earth ros.d and comJ>lete a shorter paved route from Buenos Aires to Mendoza and Chile; the other three sections are ~n the country's main link witt the southern provinces which extends nearly 2,000 miles from Buenos Aires ,to Tterra del Fuego ,. the southern tip of the continent. c'In addition <:ti\, the construction work, the project includes a reconnaissance of the national and provi~cial primary road net.work to identify priorities for () .f :road construction. This will be followed by feasibility studies and detailed eri- gj.neering which will provide ihe basis for A:rgentiµa.' s road investment program fer '\ ( • 1971-75. Another part of the project consists of (fhe preparation of a nation-'°'-:i.de  "Bank Press Release No. 69/52 - 2 - () ltrgentina. -- Roads" • u \\ road inventory i the establishment of a traffic counting system for the primary ·' road network, the setting up of a cost accounting system for the National Highw~~ Authority (Vialidad), a.iia. the formulation of recommendations for the coordination of road and r~l transport. The project will be executed by Vialidad, with the,: assistance of consultants • .It is scheduled for completion in early 1972 at an estimated cost equivalent to $50 million. The Bank loan ·of $25 million will cover ba;Lf the construction costs and the foreign exchange costs of the consultants who will supervise construction (:.\ and carry out feasibiG.ity and engineering studies for the 1971-75 road program. The Government of Argentina will finance the balance of these costs • ,.. I l • r f\ and the ·rest of 'the items included in the project. The Bank loan will be for a term of 25 years, including a four-year grace ~ period, and will bear interest of 6-1/2%. This will. be the second Bank loan for Argentine highways. An earlier loan of $30.9 million (after cancellations) helped to finance the improvements of about J.T200 miles of roads and the purchase of road maintenance equipment. - 0 - • .