Announcement of 11.5 Million Dollars Credit for Roads in Afghanistan on December 20, 1973

• INTERNATIONAL DEVELOPJMENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA press Release No. 73/90 Subject: $11.5 million credit for roads December 20, 1973 in Afghanistan A credit of $11.5 million from the International Development Association (IDA), an affiliate of the World Bank, will help Afghanistan to improve and maintain 2,480 miles of roads essential to the country's economic development. Afghanistan's highway network, comprising about 14,000 miles, is the ma.in mode of transport in the country. In terms of location and length, the network is adequate to serve expected land transport demand in the near future. However, many roads have substandard characteristics, lacking the capacity to • handle traffic at reasonable cost • The project being assisted by the IDA credit was identified and prepared with financial assistance from the United Nations Development Programme, with the World Bank as executing agency. It is the second credit for roads in Afghanistan. A credit of $5 million, extended in 1969, financed the purchase of highway maintenance and workshop equipment, vehicles, spare parts, tools and materials for road maintenance in eastern Afghanistan. The present credit will continue the road improvement and maintenance program in eastern Afghanistan and will extend the program to cover the western and southern regions. Improvement of these roads is essential to Afghanistan's development efforts in other key economic sectors. The project is scheduled for completion in 1977 at a total estimated cost of $20.l million. The IDA credit will cover about 57% of the total cost of the project including the foreign exchange cost of $10.9 million. The IDA credit to Afghanistan is for a term of 50 years, including a 10-year grace period. It will be interest free but will carry a service charge of 3/4 of 1% per annum to cover IDA 1 s administrative expenses. • Note: Money figures are expressed in US dollar equivalents • IDA P.R. No. 73/90 -- Afghanistan -- Roads TECHNICAL DATA • PROJECT: Road improvement and maintenance COUNTRY: Afghanistan TOTAL COST: $20.l million IDA FINANCING: $11.5 million, 50 years including 10 years of grace, interest-free except for a service char~e of 3/4 of 1% to cover IDA's administrative expenses. OTHER FINANCING: Government of Afghanistan PROJECT DESCRIPTION: Execution of road improvement and maintenance progr&m in the eastern, southern and western rer,ions of Afghanistan, and purchases of equipment, spare parts and materials for it; construction of a highway maintenance center at Kabul; consultinr, services to assist the Ministry of fublic Works in the nanagement of the road improvement and maintenance program; training of road staff; and formulation of a road improvement and maintenance program • for the period of the country's Fifth Development Plan (beginning in 1976); and assistance to the Provincial Development Department in planning, design and supervision of road works and technical assistance by internally recruited specialists in the execution of the road improvement and maintenance program. PROCUREMENT: International competitive bidding for procurement of new equip- ment and related spare parts, and for impo-ted materials, tools and lubricants; spare parts for existing equipment will be procured directly from the original suppliers of equipment; local bidding for workshop improvement and construction; and purchase of cement from government owned cement factories at a price subject to the Association's approval. CONSULTANTS: Rroposals will be invited from international firms for technical assistance in the management of the road work programs, training, and for formulating the road work programs for the Fifth Five-Year Plan period. Specialists to assist the Ministry of Public Works will be recruited individually on the basis of competence and experience. IMRLEMENTING ORGANIZATION: Ministry of f>ublic Works, Road Maintenance First Department, Kabul, Afghanistan. ESTIMATED COMfLETION DATE: 1978 • - 0 -