Announcement of Twelve Million Dollars for Somalia’s Road and Industrial Development on April 21, 1977

ej\/orld Bank 1818 H Street, N. W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 I DA NEWS RELEASE NO. 77 /46 APRIL 21, 1977 $12 MILLION FOR SOMALIA'S ROAD AND INDUSTRIAL DEVELOPMENT Somalia's national road system wi 11 be improved and so will its industrial sector as a result of two credits totaling $12 mil- lion approved by the International Development Association llDA), an affiliate of the World Bank. The $7 mill ion third road project, which includes the con- struction and related supervision of the Hargeisa-Borama Road, will be an important element in the national road syste~ of the country. In addition to serving the growing transport demand within the northwest region, which is rich in livestock and agri- cultural crops, the roads will facilitate trade with Ethiopia. • It will also result in increased revenues from livestock exports. Because of the Government's transport rate pol icy, the benefits wi 11 be widely distributed among producers, traders and consumers. The Arab Fund for Ec0nomic and Social Development, the Islamic Development Bank, and the African Development Fund are helping co- finance the project. The $5 million credit to the Somali Development Bank (SOB), Mogadishu, Somalia, wi 11 meet part of SDB's foreign exchange require- ments through June 30, 1979, and will strengthen SOB, an institution that plays a key role in Somalia's development, especially in the industrial sector. The Arab Fund for Economic and Social Development is helping through a recently approved grant in co-financing the project's technical assistance component. Both IDA credits to Somalia are for 50 years, including a 10- year grace period. They are free of interest, except for a service charge of 3/4 of 1% to meet IDA 1 s administrative costs. Note: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T ECHN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Third Road Soma 1 i a $30 million • IDA FINANCING: $7 million, standard IDA terms OTHER FINANCING: Arab Fund for Economic and Social Development (AF), $8 million; Islamic Development Bank (IDB), $7.5 million; African Development Fund (ADF)) $5.5 million; Government, $2 mill ion IMPLEMENTING ORGANIZATION: Civil Engineering Department (CED) Ministry of Public Works Mogadishu, Somalia PROJECT DES:RIPTION: Construction and related supervrsron of the Harqeisa- Borama Road with a link to Tug Hajale in Northern Somalia, feasibility and detailed engineering studies of the Dinsor-Bardera-Gelib Road in Southern Somalia, and strengthenino of the Civil Engineering Department of the Ministry of Public Works through provision of technical assistance, training and machine shop equipment. PROCUREMENT: The civil works will be procured under single unit price contract through international competitive l.;idding in accordance with Bank guidelines. Bids on civil works construction are • expected in June 1977, and tender award in August 1977. No problems are anticipated in acqu1r1ng land for right-of-way because the Government has the right of eminent domain. The consulting services for construction supervision, the feasibility study and detailed engineering will be by qualified and experienced consultants under terms and ccnditions acceptable to luA. TECHNICAL ASSISTANCE: Technical assistance comprising a senior highway engineer, two highway superintendents, and a workshop superintendent, totaling about 3 man-years, will assist in setting up a continuous program of road and traffic data collection, including an updated and expanded road inventory; maintenance planning and operations, including equipment management and control; and an assessment of highway manpower needs, including planning and implementation of staff training. The technical assistance program includes on-the-job training of professional staff, as well as training on the job and in the classroom of existing and new mechanics, operators, drivers and spare part inventory contro1 staff. ECONOMIC RATE OF RETURN: 21% ESTIMATED COMPLETION DATE: 1979 - 0 - • I