Central African Empire - Third Highway Project

Document of The World Bank FOR OFFICIAL USE ONLY P7330 REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE CENTRAL AFRICAN EMPIRE FOR A THIRD HIGHWAY PROJECT August 22, 1978 FILE COPY This document bas a restricted distribution and may be used by recipients only In the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authoriation.  CURRENCY EQUIVALENTS CURRENCY UNIT CFA Franc (CFAF) US$ 1 = CFAF 245 1/ CFAF 1,000 = US$ 4.08 CFAF 1,000,000 = US$ 4,082 ABBREVIATIONS ACCF Agence Centrafricaine des Communications Fluviales AFDEV African Development Fund ATC Agence Transcongolaise des Communications BEAC Banque des Etats de l'Afrique Centrale CAE Central African Empire CFCO Chemin de Fer Congo - Ocean DGPW Directorate General of Public Works FAC Fonds d'Aide et de Cooperation FED Fonds Europeen de Developpement FRG Federal Republic of Germany KFAED Kuwait Fund for Arab Economic Development ONCPA Office National Centrafricain des Produits Agricoles RMWA Regional Mission in Western Africa UDEAC Union Douaniere des Etats de l'Afrique Centrale FISCAL YEAR January 1 to December 31 1 Floating exchange rate. CFAF is tied to the French Franc (CFAF 50 = FF 1).  FOR OFFICIAL USE ONLY Page 1 of 2 pages CENTRAL AFRICAN EMPIRE THIRD HIGHWAY PROJECT CREDIT AND PROJECT SUMMARY Borrower: Central African Empire Amount: US$15.5 million Terms: Standard Project Description: The project would assist the Government in its efforts to improve landlocked C.A.E.'s access to the Ocean through the reconstruction of the Bangui-Bossembele section (145 km) of the road to Cameroon. The proposed project consists of the reconstruction of the Bangui-Bossembele road to two-lane bituminous sealed standard including the construction of a two-lane bridge over the M'Bali River. The benefits for C.A.E. would mainly consist of savings in vehicle operating costs, maintenance costs and distance sav- ings. The project would also stimulate agricultural devel- opment in some populated areas by providing improved access to markets and reduced costs of supplying inputs. On the external side, the project is not only an important route for import/export traffic via Cameroon, but also a part of the Trans-African highway and of the Trans-Equatorial route serving land-locked Chad. The project therefore contributes also to the economic development of the Central African Region. Despite the Government commitment, unavailability of local counterpart funds has been identified as a potential risk. However, the project is linked to the rehabilitation of the country's maintenance capacity through a program financed by FED, FAC and the FRG. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Page 2 of 2 pages Estimated Costs: 1/ US$ '000 Foreign as % Foreign Local Total of Total A. Reconstruction of Bangui-Bossembele road 17,540 2,516 20,056 87 B. Supervision of construc- tion works 340 160 500 68 C. Consulting engineering services 140 30 170 82 D. Contingencies (i) Physical (10%) 1,755 252 2,007 87 (ii) Prices 2,589 359 2,948 87 Subtotal D 4,344 611 4,955 87 TOTAL 22,364 3,317 25,681 87 ROUNDED 22,400 3,300 25,700 87 Financing Plan: