Announcement of Five Million US Dollars Credit to Burundi for Highway Maintenance Project on February 14, 1974

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EX!CUTIVIE-3-e3eQ IDA Press Release 74/12 Subject: $5.0 million credit to Burundi February 14, 1974 for highway maintenance project The International Development Association (IDA), an affiliate of the World Bank, has approved a credit for the equivalent of $5.0 million to Burundi to help finance a highway maintenance project that will implement a four-year highway maintenance program, provide technical assistance and a master plan for further road development and pre-investment studies. Burundi, a landlocked country near the center of the continent of Africa is recognized as one of the "Least Developed Countries". Ninety-five per cent • of its population depend upon agriculture. Per capita income is low and the country faces a number of constraints to economic development, including high population pressure on scarce land resources, insufficient economic infra- structure and a shortage of skilled manpower. Although fairly extensive, the road network consists mainly of earth roads in poor condition. Since Burundi became a member of IDA in 1963, three credits have been granted; a project in March 1966 for rehabilitation and exte~sion of Bujumbura's water supply system, a project in April 1969 for improvement of coffee production by smallholders, and in June 1970 $380,000 was granted to help finance the de- tailed engineering of a road from Bujumbura to Nyanza Lac and a highway main- tenance study. The present project whi.ch is based on the 1970 study, consists of the implementation of a four-year highway maintenance program (1974-78); the • Note: Money figures are expressed in US dollar equivalents. /more IDA P.R. 74/12 - Burundi - 2 - provision of consultant services to help prepare a master plan for road develop- ment; feasibility and detailed engineering studies of the Ngozi-Muyinga-Kobero road (66 miles - 106 km) and possible other roads resulting from the highway • master plan and re-financing of the 1970 highway engineering credit. It is expected that nearly 8 years will be required to establish a satisfactory highway maintenance organization to keep the country's road network adequately main- tained. 'nte four-year maintenance program will be the first phase of this longer-term program, concentrating on providing the necessary facilities and the .training of a nucleus of technicians and skilled workers upon which to build a strong organization. The Department of Roads and Bridges (DPC), under the Ministry of Public Works, will be responsible for the execution of the project, with the assistance • of experts to be provided by the United Nations Development Programme (UNDP), and the Federal Republic of Germany. The estimated total cost of the project is $8040 million including a foreign exchange component of about $7.21 million. In addition to a grant from the'Federal Republic of Germany, which is providing the equivalent of $1033 million for the construction of a workshop at Bujumbura and its management, the UNDP is providing $1.05 million for assistance to the DPC and the Government of Belgium is granting $400,000 to help cover part of the local costs. The Government of Burundi is contributing $620,000, for counterpart personnel, logistical assistance, and local materials •. '!1te IDA credit of $5o0 million is being made to the Republic of Burundi for a term of 50 years, including 10 years of grace. It is interest-free except for a 3/4 of 1 per cent service charge to meet IDA's administrative expenseso - 0 - • ·' • INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET NW. WASHINGTON 25 D C ~'- ~ ~,,H,:1~ir: EXECUTIVE 3-6360 TECHNICAL DATA PROJECT: Highway maintenance project COUNTRY: Republic of Burundi TOTAL COST: $8 .L~O million IDA FINANCING: $5.0 million, 50 years, 10 years of grace with a service charge of 3/4 of 1% to cover IDA's administrative costs. OTHER FINANCING: The UNDP is providing $1.05 million to finance six consultants, and the Federal Republic of Germany is granting the equivalent of $la33 million for construction of the workshop at Bujumbura and for its management. Belgium is granting $400,000 to help with the costs. The Government of Burundi is providing $620,000. • IMPLEMENTING ORGANIZATION: The Minis try of Pub lie Works has overall res pons ib il i ty for design, construction and maintenance of national roads and the Department of Roads and Bridges (DPC), Ministry of Public Works & Energy, Bujumbura, Burundi, executes construction works and routine maintenance. DPC will be responsible for execution of the present project assisted by experts provided under the terms of the project by the UNDP and Germany. PROJECT DESCRIPTION: Implementation of a four-year highway maintenance program; pre-investment studies for improvement of the Ngozi-Muyinga-Kobero road; preparation of a master plan for further road development and additional feasibility studies; refinancing of previous credit of $380,000 (in 1970) for road engineering. PROCUREMENT: International competitive bidding for the award of all IDA financed contracts, except that tenders for contracts of less than $10,000 equivalent for equipment may be ad- vertised only locally. CONSULTANTS : To assist in the implementation of the highway maintenance project; to prepare feasibility and detailed engineering studies of the Ngozi-Muyinga-Kobero road and a master plan for further road development and additional preinvestment studies; and to prepare and help implement a training program for DPC personnel • • ESTIMATED COMPLETION DATE: 1978