Announcement of Eighteen Million Eight Hundred Thousand US Dollars Loan for a Highway Project in Honduras on May 29, 1973

INTERNATIONAL BANK FOR .RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W .. WASHINGTON 0. C. 20433 TELEPHOJIIE: EXECUTIVE 3-6360 Bank Presa Release No. 73/3/J Subject: $18. 8 million loan for a hiahwa1 Kay 29, 1973 project in Honduras The World Bank has approved an $18.8 million loan to help finance an eatimated $25.8 million equivalent highway construction and improve..nt project in Honduras. This is the sixth Bank Group ff.Dancing for highways development in Honduras in support of Govenunent programs to improve and expand the country's road network, which is vital to its development. The project is an important part of the Honduran Government's highway inveatment program for 1972-77. The program is aimed at, among other thin.. , opening new lands to further agricultural and forestry development. The project includes the constru,:tion of a 34-mile road from the C'l)ital city of Tegucigalpa to Talanga. This will be the first leg of a route to . Juticalpa, to open the rich agricultural and forestry potential of the Olaucho ~ region located 60 miles east of Talanga. The reduced transport coats between Tegucigalpa and Talanga are expected to spur production in the Olancho region of baaic agricultural products for the capital city area, and of livestock and cotton for export. The project also tncludes the improvement of a 28-mile secondary road from Comayagua to La Libertad, in the central part of the country, to COD'1ect the, brti.le Comayagua Valley to the Tegucigalpa-San Pedro Sula highway. The loan will also finance the improvement of about 50 miles of feeder roads and the construction of a 650-foot bridge on the Ulua river along the La C-eibita-San Hicolas feeder road. The secondary and feeder road improve- ment program will provide farmers with better access to markets and facilitate provision of extension services in line with the Government's program to stimu- late agricultural production. Part of the loan funds will finance consulting services for constructiOD supervision; preparation of studies of feeder roads; a training program for highway engineii'.tI'S, supervisors and technicians; and technical assistance in transport planning. • The loan to Honduras will be for a term of 30 years, including five year• of grace, with annual interest at ~%. Wells Fargo Bank N.A., San Francisco, is participating in the loan. - 0 -  BJ\Nf·< FOR i\10 DEVE~LOPfVlENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 May 29, 1973 TECHNICAL DATA PROJECT: Highway COUNTRY: Honduras TOTAL OOST: $25. 8 million BANK FINANCING: $18.8 million loan, 30 years, 5 years of grace, interest at 7~% per anntm1. OTHER FINANCING: Govemment of Honduras. IMPLEMENTING ORGANIZATIONS: Ministerio de Comunicaciones, Obras Publicas y Transporte, Tegucigalpa; Cable Address: MINICOMUNlCACIONES; Telephone No. 22-8691, for all construction supervision and training elements of • the project; Secretaria Tecnica del Consej o Superior de Planificacion · Economica, Tegucigalpa; Cable Address: PLANIFICACION; Telephone No. 22-2261, for work in transport planning. PROJECT DESCRIPTION: Constructionof a new primary road between Tegucigalpa and Talanga (34 miles); reconstruction of a secondary road between Comayagua and La Libertad (28 miles); improvement of !eeder roads (50 mil~); construction of a bridge over the Ulua river; consulting services for con- struction supervision, and the preparation of feeder road technical and economic studies; technical assistance for a staff training program and in transport planning. PROCUREMENT: Intemational competitive bidding for the Tegucigalpa-Talanga road, the major component of the project. Competitive bidding with local advertising only fo~ the construction·of the Ulua river bridge, reconstruction of the secondary road Comayagua~La Libertad, and improve- ment of feeder roads; this procedure would not exclude participation of foreign firms in bidding. CONSULTANTS: The Govemment intends to engage Howard Humphreys·Keeble and Partners (UK) for the supervision of the Tegucigalpa-Talanga road, and qualified consultants for: the supervision of reconstruction of the secondary road Comayagua-La Libertad, improvement of feeder roads and construction of the Ulua river bridge; engineering for 28 miles of feeder roads to be constructed under the present project; feasibility studies and engineering studies for an additional 200 miles of feeder roads; and tech- • ~ical assistance in transport planning. ESTIMATED COMPLETION DATE: Late 1976. - 0 -