Announcement of One Hundred Five Million Dollars for Highway Improvement in Argentina on March 24, 1977

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 Bank News Release No. 77/69 March 24, 1977 $105 MI LL I otJ FOR HI GH\~AY IMPROVEMENT IN ARGENT I NA The World Bank announced today the approval of a $105 mi 1 lion loan to help finance a highway project in Argentina. The project has an estimated total cost of $345 million. The Bank's loan will help cover the project's foreign exchange cost of $124 million. The project will benefit some of the poorest regions of the country and will provide employment in the construction sector in rural areas. The project will also assist Argentina's efforts to achieve more efficient use of public investment. The project also includes the preparation of studies and programs aimed at improving transport sector management and operations, investment planning, and intensification of agricultural land utilization. • In addition to reducing transport costs, the project wi 11 contribute to develop the full agricultural potential of those areas it wi 1 l serve, to alleviate congestion in the arterial links to main export and provincial centers, and to facilitate integration and trade with Argentina's neighboring countries. The project consists of: a) road betterment program including the upgrading and paving of 14 heavily traficked earth and gravel roads (about 925 km), the, repaving and improving of 4 congested paved roads (390 km) , and upgrading of 2 roads to four-lane highways (36 km); bra regional agricultural developmerit study in Northern Argentina; c) preparation of a national transport plan; d) preparation of a pavement overlay study;and, e) preparation of a traffic safety program. The $105 million loan wi 11 continue Bank support of the highway sector of Argentina. Three previous projects financed by the Bank in 1961, 1969 and 1971 provided for upgrading and construction of about 4,100 km or roads. The loan wi 11 be for a term of 15 years, including three years of grace, with interest at 8.5% per annum. Note: Money figures are expressed in US dollar equivalents • • FOAM NO. 1121 (5-76) T ECHNI CAL D A T A PROJECT: COUNTRY: Fourth Highway Argentina $345.1 million • TOTAL COST: BANK FINANCING: $105 mi 11 ion, for 15 years including 3 years of grace with interest at 8.5% per annum. OTHER FINANCING: Government of Argentina: $240.1 million IMPLEMENTING ORGANIZATION: (a) For the Road Betterment Program, Pavement Over- lay Study, and Traffic Safety Program: Direcci6n Nacional de Vial idad, Avenida Maipu, 3, Buenos Aires, Argentina. (b) For the Regional Agricultural Development Study: Secretar(a de Programacion y Coordinaci6n Econ6mica, Hipbl ito Yrigoyen, 250, Buenos Aires, Argentina. (c) For the National Transport Plan: Subsecretarfa de Transportes, Av. 9 de Julio, 1925, Buenos Aires, Argentina. PROJECT DESCRIPTION: a) Road Betterment Program. Paving and improving of 14 earth or gravel roads total- • ling about 925 km; repaving and improving of 4 ~aved roads (about 390 km); and upgrading of 2 roads to four-lane highways (about 36 km); b) preparation of a Re ional A ricultural Development Stud in Northern Argentina; c) preparation of a National Transport Plan; d preparation of a Pavement Overlay Study and a Traffic Safety Program. PROCUREMENT: Contracts for highway construction will be let on the basis of international competitive bidding Equipment for the Pavement Overlay Study ($300,000) wi 11 be procured under negotiated contracts. CONSULTANTS: Consultants wi 11 be contracted to provide technical assistance for the supervision of civil works, and for the preparation of a National Transport Plan (2,100 man-months), a Regional Agricultural Development Study (175 man-months), a Pavement Overlay Study (82 man-months), and a Traffic Safety Program (84 rnan-months). ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 23% (Road Betterment Program) By the end of 1980. • - 0 -