Announcement of Eleven Million Dollars Loan for Senegal Railway on February 9, 1978

FOR IMMEDIATE RELE~SE •World Bank _________________________________________________ 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 , BANK NEWS RELEASE NO. 78/43 FEBRUARY 9, 1978 ~l f MILLION LOAN FOR SENEGAL RAILWAY The World Bank has approved an $11 milJi'on loan for a Third Railway Project in Senegal. The focus of the project is a. large three-year program of action which is aimed at improving operational and financ!al performance of the Senegal Railway, and which includes measures to strengthen the Railway's organization, management, and staff training. To complement the action program, the project also provides for some important physical investments designed to }mprove • productivity • The project's main components are: track renewal (about 60 km); procure- ment of track maintenance equipment and materials; spare parts for motive power and rolling stock, and workshop equipment; extension and rehabilitation works at the Dakar-Bel Air marshal ling yard; a three-year training program for selected middle- and high-level managers and about 300 skilled laborers and low-·level supervisors annually; and consulting services for studies. Total project cost is estimated at $14.26 million. The World Bank's $1 l million loan is for 20 years including 5 years of grace, with interest at 7.45% per annum. The Joan is to the Senegal Railway, with the guarantee of the Government of the Republic of Senegal. NOTE: Money figures are expressed in U.S. dollar equivalents . • FOAM NO. 1121 (5-76) T E C H N I C A L DAT A PROJECT: COUNTRY: Third Railway Senegal • TOTAL COST: $14. 26 mi l l ion Bank F,NANCI NG: S11 mil lion (ZO years including 5 years of grace, with interest at 7.45% per annum) OTHER FINANCING: Senegal Railway $3.26 mill ion IMPLEMENTING ORGANIZATION: Regie des Chemins de Fer du Senegal Thies Cable Address: Fersenegal Senegal Thtes, Se~egal PROJECT DESCRIPTION: The main components of the project are: track renewal (about 60 km); procurement of track maintenance equip- • ment and materials, spare parts fnf motive power and rolling stock, and workshop equipment; extension and rehabilitation works at the Dakar-Bel Afr marshalling yard; a three-year training program for selected middle- and high-level managers and about 300 skii led laborers and low-level supervisors annually; and consulting services for studies. PROCUREMENT: Small items of track maintenance tools and workshop equip- ment costing less than $10,000 individually ($350,000 in total) will be procured through competitive bidding following local procedures, and by international and local shopping as appropriate, all in accordance with World Bank. guidelines. Critical spare parts for motive power, rolling stock, and tampers (to maximum of$ 3 mill ion) will be purchased by obtaining quotati~ns from estab- 1 ished manufacturers and by direct negotiations with original suppliers. Al 1 other equipment and goods financed under the proposed Joan, particularly track maintenance equipment and material, and telecommunications equipment ($4.3 million)? .ivil I be 1 procured following international competitive bidding in accordance with World Bank guidelines. CONSULTANTES: All consultants for the proposed studies and instructors for the training program wi 11 be selected in agreement with and under terms and conditions acceptable to the Bank. Recruitment of expatri- ate training instruct,)rs wi 11 be based on their knowledge of railway operations and their actual training experience in developed as well as in developing countries • ECONOMIC RATE OF RETURN: 22 per cent EST I MATED COMP LET I ON DATE: 1981 • - 0 -