Announcement of 11.8 Million Dollars Credit to Dahomey for Highway Reconstruction and Maintenance held on May 29, 1973

> \"'I'(,,,; 1:;. I. 0 p ,It~,1, • INTERNATIONAL DEVELOPMENT ASSOCIATION (~) 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 73/37 Subject: $11.8 million credit to Dahomey May 29, 1973 for highway reco·nstruction and maintenanc~ The International Development Association (IDA) , an affiliate of the World Bank. continuing its assistance to the Republic of Dahomey in develop- ing a modern transport network, has approved financing of $lle8 million for highway construction and maintenance. Dahomey's economy relies heavily on its highway network for transport of agricultural products to foreign and local markets. The country's most important axis, the north-south "Dahomey Route" consists of the port of Cotonou, the railway from Cotonou to Parakou, and the Parakou-Malanville road. The entire highway network totals approximately 4,200 miles generally adequate in extent and design but with difficult maintenance because of lack of funds, • deterioration of equipment and inadequate organization. A first IDA credit of $3.5 million was granted in 1970 to cope with the maintenance problems. The present project consists of the reconstruction of the 200-mile Parakou- Malanville road and two sections of the Cotonou-Bohicon road, 12.5 miles long; it also includes the financing for the supervision of this re cons tructi.on work and the extension of the on-going highway maintenance program by providing additional technical assistance and materials. The total cost of the project is presently estimated at $21.1 million of which IDA will finance $11. 8 million and the U.S. Agency for International Development (USAID) $8 .O million. Except for the 100 miles of the Parakou- Malanville road to be financed by USAID, all construction work, maintenance equipment and materials will be procured \mder international competitive bidding. With the technical assistance of A.G. Dorsch, Lamarre-Valois, and L.D. Lea & Ac;sociates, the Department of Public Works within the Ministry of Public Works, Mines and Energy will be responsible for the execution of the project, expected to be completed by Jlllle 1977. The IDA credit is for a term of 50 years with 10 years of grace. It is • interest free but carries a service charge of 3/4 of 1% per annum to cover IDA's administrative expenses. - 0 -  • May 29, 1973 TECHNICAL DATA PROJECT: Second highway COUNTRY: Dahomey TOTAL COST: $21.1 million IDA FINANCING: $11.8 million, 50 years, 10 years of grace, interest free except for 3/4 of 1% service charge to cover IDA's administra- • tive expenses. OTHER FINANCING: U.S. Agency for International Development; Dahomey Government. IMPLEMENTING ORGANIZATION: Direction des Travaux Publics, Ministere des Travaux Publics de l'Energie et des Mines, Cotonou, Dahomey. PROJEC-i DESCRIPTION: Rehabilitation of the northern half (100 miles) of the Parakou-Malanville route; rehabilitation of the southern half (100 miles) of the Parakou-Malanville route and of two sections (12.5 miles) of the Cotonou-Bohicon road; supervision by consultants of highway rehabilitation; extension of the existing highway maintenance program by providing additional technical assistance and materials. PROCUREMENT: Construction of 225 miles of roads; construction and main- tenance materials. International competitive bidding except for the northern 100 miles of the Parakou-Malanville route. CONSULTANTS: Barsch A.G. to supervise the reconstruction; L.D. Lea & Associates and Lamarre-Valois to provide technical assistance for the extended maintenance program. ESTIMATED COMPLETION DATE : June 19 77. - 0 - •