Announcement of Zambia Receives Twenty-Two Million Five Hundred Thousand Dollars for Highway Project from World Bank and IDA on May 15, 1978

FOR IMMEDIATE RELEASE tWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/88 May 15, 1978 IDA NEWS RELEASE NO. 78/66 ZAMBIA RECEIVES $22.5 MILL~ON FOR HIGHWAY PROJECT FROM WORLD BANK AND IDA A project to improve the maintenance of Zambia's road network will be assisted by a loan and a credit totalling $22.5 million from the World Bank and its affiliate, the International Development Association (IDA). The project will help the Government halt the rapid deterioration of primary and secondary roads by financing a nation-wide maintenance pro- gram. Improved maintenance of Zambia's road network is essential, since the network not only facilitates internal and external trade, but also pro- vides the country's widely scattered rural population with access to markets and to health and educational facilities. • Under the project, new road maintenance and workshop equipment as well as spare parts, tools and training aids will be provided. The project also includes a pilot rural access program to determine how maintenance planning and operations of rural access roads can be improved. Finally, a feasibility study will be carried out, and, if justified, detailed engineer- ing will be made of a 240-kilometer road which links Mansa, a provincial capital, and the rest of the country with rich fishing and agricultural areas. The total cost of the project is estimated at $26.7 million, with a foreign exchange component of $22.5 million. A World Bank loan of $11.25 million and an JOA credit of the same amount will finance the foreign ex- change cost. The balance of the total cost will be met by the Government of Zambia. The World Bank loan will be repayable in 20 years, including 5 years of grace, at 7.5% per annum. The IDA credit is on standard terms of 50 years, including 10 years of grace, at no interest except for a service charge of 3/4 of 1% per annum for administrative expenses. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T E C HN I CA L DA T A PROJECT: Third Highway COUNTRY: Republic of Zambia TOTAL COST: $26.7 million BANK FINANCING: $11.25 million for 20 years, including 5 years of grace, at 7.5% interest per annum. IDA FINANCING: $11.25 million, standard IDA terms. OTHER FINANCING: The Government of the Republic of Zambia, $4.2 mill ion. IMPLEMENTING ORGANIZATIONS: Department of Roads, Ministry of Public Works, P.O. Box RW236, Lusaka, Zambia Mechanical Services Branch (MSB), P.O. Box 91, Church Road, Lusaka, Zambia Ministry of Local Government and Housing, P.O. Box RW27, Lusaka, Zambia PROJECT DESCRIPTION: The project will consist of a program to improve main- tenance of the primary and secondary road networks by strengthening the responsible institutions through the provision of equipment and tech- nical assistance. It will also include a pilot rural road maintenance program, a feasibility study and, if justified, detailed engineering of either the Mansa-Kawambwa- • Nchelenge road, or such other road or roads as may be agreed. PROCU.REMENT: Contracts for road maintenance and workshop equipment, including a supply of spare parts, estimated to cost about $11.6 million (excluding contingencies) will be awarded after international competitive bidding in accordance with Bank/lDA guidelines with separate contracts for each type or group of similar types of equipment. Suppliers of equipment not already represented in Zambia will be required to provide training for mechanics and plant operators. In addition, they will be required to maintain an adequate organization and a reasonable inventory of spare parts in Zambia. The spare parts required for rehabilitating and maintaining existing equipment, and training aids, estimated to cost about $1.5 mill ion (excluding contingencies) will involve a wide range of items of various makes. These will therefore be procured in accordance with government procurement procedures. Similarly, equipment, materials and other items, estimated to cost $1 million (excluding contingencies), required for the Pilot Rural Road Maintenance Program will also be procured in accordance with government pro- cedures. CONSULTANTS: The project provides for consultants to help (i) in pre- paring specifications and bidding documents for road main- tenance and workshop equipment and in bid evaluation (about 6 man-months); (ii) in drawing up a plan for the· reorganization of MSB (about 20 man-months); and (ii~) in carrying out • the study and engineering of the Mansa-Kawambwa-1khe 1enge road (about l 05 man-morr ths) · ECONOMIC RATE OF RETURN: 44% ESTlMATED COMPLETION DATE: 1982