Announcement of Twenty-Eight Million Two Hundred Thousand Dollars for Ivory Coast and Upper Volta Regional Railway Project on October 20, 1977

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • folephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/18 IDA NEWS RELEASE NO. 78/14 OCTOBER 20, 1977 $28.2 MILLION FOR IVORY COAST/UPPER VOLTA REGIONAL RAILWAY PROJECT The World Bank and its affiliate the International Development Association (IDA), have approved a $23 million loan and a $5.2 million credit respectively for the Ivory Coast/Upper Volta Regional Railway Project. The railway is the most economic mode of transport for Upper Volta, south eastern Mali and northern Ivory Coast. The project will cover priority items of the 1978-79 portion of the Regie des Chemins de Fer Abidjan-Niger 1 s (RAN) investment plano This will primarily consist • of track realignment and renewal of track materh,..1.. in the Ivory Coast; track improve- ment in Upper Volta; procurement of locomotives; freight cars and track maintenance equipment, provision of training facilities, consulting services for technical train- ing, management improvement as well as to carry out feasibility studies. The Canadian International Development Agency (CIDA) is providing $29.2 million on IDA and grant terms to the two Governments, funds to be onlent to RAN, for the purchase of equipment. RAN is the borrower of the $23 million Bank loan. The Inter- national Development Association (IDA) is providing $5.2 million to Upper Volta to be onlent to F.AN. The total cost of the project an1ounts to $66.2 million. The $23 million Bank loan will be for 17 years, including four years' grace period, with an interest rate of 8% per annum. Th8 $5. 2 million IDA credit will be for a 50-year term, including ten years grace period. It will be interest-free but • will carry a service charge of 3/4 of 1% to cover IDA's administrative expenses • Note: Money figures are expressed in US dollar equivalent. FORM NO. 1121 (5-76) T E CHN I CA L ~ A T A PROJECT: COUNTRIE!,: TOTAL COST: Ivory Coast/Upper Volta Regional Railways Ivory Coast/Upper Volta $66.2 mil lion • BANK FI NANC I NG: $23 million (17 years including 4 year's grace period at 8% interest per annum) IDA FINANCING: $5.2 million (standard IDA terms) OTHER FINANCING: Regie des Chemins de Fer Abidjan-Niger's (RAN) $3.9 mi 1 lion; Government of Ivory Coast $4.3 million; Government of Upper Volta $0.6 mill ion; the Canadian International Development Agency (CIDA) $29.2 mil lion (IDA term). IMPLEMENTIN~ ORGANIZATION: Regie des Chemins de Fer Abidjan-Niger (RAN) B.P. 1394 Abidjan-Ivory Coast Telex FERDIA 564 Abidjan PROJECT DESCRIPTION: The project will cover priority items of the 1978-79 por- tion of the Regie des Chemins de Fer Abidjan-Niger's (RAN) 1977-82 investment plan. This will primarily consist of track realignment and renewal of track material in the Ivory Coast; track improvement in Upper Volta; procurement of locomotives; freight cars and track maintenance equipment, provision of training faci l i - . ties, consulting services for technical training management improvement as well as to carry out feasibility studies. PROCUREMENT: Bank-Group-financed items wil 1 be procured by international competitive bidding in accordance with Bank Group guidelines for a total of $17.7 mi 11 ion. The consulting services, technical assistance and feasi- bility studies,for which consultants will be selected on terms and conditions acceptable to the Bank, wi 11 amount to a total of $2.6 mill ion, including all contingencies. Other items will be procured under local competitive bidding satisfactory to the Bank . ECONOMIC RATE OF RETURN: 23% ESTIMATED COMPLETION DATE: December 31, 1980 fl,b - 0 •