Announcement of Ten Million Twenty Thousand US Dollars Credit to Tanzania for Highway Improvement on August 8, 1974

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 74/55 Subject: $10.2 million credit to August 8, 1974 Tanzania for highway improvement The International Dev~lopment Association (IDA), an affiliate of the World Bank, has approved a credit of $10.2 million to Tanzania to help finance a highway maintenance project. The project is the first stage of the. Government's program to improve the main- tenance of primary roads throughout the country. Tanzania is divided into 20 regions, and 10 of these are covered under the program. In the 10 regions there are about 3,300 km. of primary roads which will be rehabilitated, where necessary, and then maintained. • The project provides for assistance to Tanzania for strengthening the organization and operation of the roads division of its Ministry of Communications and Works. The project will be executed in the four-year period between 1975 and 1978, and includes construction and/or improvement of road maintenance camps, workshops and offices, and the purchase of equipment, vehicles, spare parts, tools, materials, and technical assistance to the Ministry for implemenL.r1g the project and for training of highway maintenance personnel, ultimately with a view to extending the improvement program to the rest of Tanzania at a later stage. Under the project, there will also be a study of the road transport ind ug:ry in Tanzania. The IDA credit is for 50 years, including a 10-year grace period. It is interest free, except for a service charge of 3/4 of 1% to meet IDA's administrative expenses. • Note: Money figures are expressed in US dollar equivalents. -0-  August 8 , 19 74 PROJECT: TECHNLCAL DATA Highway a • COUNTRY: Tanzania TOTAL COST: $12.5 million IDA FINANCING: $10.2 million, for a period of 50 years, including 10 years of grace, interest free except for a 3/4 of 1% service charge to meet IDA's administrative expenses. OTHER FINANCING: Government of Tanzania IMPLEMENTING ORGANIZATION: Ministry of Communications and Works PROJECT DESCRIPTION: The project is the first stage of Tanzania's primary road maintenance program and also includes a study of the road transport industry. Two areas with the highest priority of the four into which the ~ountry has been divided were selected for inclusion in this stage of the program. About 3,300 km. of primary roads in these· two areas will bemaintained Snd where necessary rehabilitated during a foui-year oeriod(l975-7~ PROCUREMENT: There will be international competitive bidding for equipment and materials where contracts exceed $50,000. Local manufactureres will be allowed a preferential margin of 15 percent or the existing rate of import duties, whichever is the lower, over the c.i.f. price of imports. Civil works estimated to cost about $1.34 million because of scattered location and staggered implementation will be executed by local contractors or force account. ESTIMATED COMPLETION DATE: 1978 •