Announcement of World Bank Approves Eighty-Five Million Dollars in Three Loans for the Dominican Republic : Hurricane Reconstruction to Receive Fifty Million Dollars on December 20, 1979

FOR IMMEDIATE RELEASE .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/35 December 20, 1979 WORLD BANK APPROVES $85 MILLION IN THREE LOANS FOR THE DOMINICAN REPUBLIC Hurricane Reconstruction to Receive $50 million Two World Bank loans, totaling $50 million, will support the Dominican Republic's emergency reconstruction efforts to repair the extensive damage caused by the hurricanes and floods in late August and early September this year. A third loan of $35 mill ion will assist the government's national road maintenance and reconstruction programs. The three World Bank loans to the Dominican Republic have terms of 17 years, including 4 years of grace, with interest at 7.95% annually. • Emergency Loans The first $25 mill ion World Bank loan will help to finance imports of raw materials, semi-manufactured, and finished goods which are necessary tc restore national production of goods and services. The loan will provide financing for about one-fifth of the likely increase in the deficit of goods and services during 1980 when the major impact of the hurricanes on the import bill will be felt. This loan will reimburse the Dominican Republic's government for foreign exchange used to pay for imports in the following categories: chemical products; plastics and rubber manufactures; wood and wood products; manufactures of stone, gypsum, ceramics, and glass; base metals and manufactures; and machinery and equipment. It is expected to be totally disbursed by 1980. The Bank loan will help to fill the foreign resource gap and will also make available to the government local currency for financing reconstruction and development projects in the public sector. The Central Bank of the Dominican Republic will be the fiscal agent for the government and will be responsible for the coordination of documentation. Address: Banco Central de la Republica Dominicana, Calle Pedro Henriquez Urena, Santo Domingo, Republica Dominicana. Cable: BANCENTRAL, Santo Domingo. . •• I NOTE: Money figures are expressed in U.S. dollar equivalents . •  - 2 - The second World Bank Joan of $25 million will help finance the reconstruction of two primary roads, totaling 150 km. The roads, connecting Cruce de Guayacanes and Santiago de la Cruz (86 km) and Azua and Barahona • (64 km), had been included in the government's 198i-84 road reconstruction program. This reconstruction was brought fordward as a result of the hurricanes and extensive flooding which washed away parts of the two roads. The project has an estimated total cost of $38.8 million. !t- i: ~imed at restoring adequate road facilities to important areas of the country. These roads are critical elements of the basic network which serves the northwestern and southwestern regions, among the country's most depressed areas. About 29% of the country's total population is concentrated in these areas. The Secretariat of State of Public Works and Communications (SEOPC) will be the executing agency for this project. Address: Secretarfa de Estado de Obras Publicas y Comunicaciones, Avenida San Crist6bal, Ensanche La Fe, Santo Domingo, Republica Dominicana. Second Road Maintenance and Reconstruction Loan A second road maintenance and reconstruction project, assisted by a World Bank loan of $35 million, includes the expansion of maintenance capacity; reconstruction of 150 km of primary and secondary roads; and completion of the final design studies for an additional 300 km of roads. • The project ~]sc ccrnpr:s8S the construction and improvement of 200 km of rural access roads in order to assess the feasibility of applying labor-based techniques, and a training program for SEOPC staff to strengthen its maintenance capabilities. The total cost of the project is estimated at $49 million. - 0 - • FORM NO. 1121 (5-76) T E C HN I CAL DA T A • PROJECT: COUNTRY: TOTAL COST: Second Road Maintenance and Reconstruction Dominican Republic $49 mi 11 ion BANK FINANCING: $35 million for a term of 17 years, including 4 years of grace, with interest at 7.95% per annum. OTHER FINANCING: Government of the Dominican Republic, $14 million. IMPLEMENTING ORGANIZATION: Secretarfa de Obras PGblicas y Comunicaciones (SEOPC) Avenida San Cristobal, Ensanche La Fe Santo Domingo, Republica Dominicana PROJECT DESCRIPTION: It will: (a) strengthen and expand maintenance capacity; (b) initiate a high-priority reconstruction program for 150 kilometers (km) of primary and secondary roads and the completion of final design studies of an additional 300 km of road reconstruction; (c) demonstrate the application • of labor-based techniques with the construction and improvement of 200 km of rural access roads; (d) upgrade SEOPC maintenance personnel through training; and (e) strengthen SEOPC's planning and programming capabilities through the establishment of a special unit. PROCUREMENT: Procurement under the project will be in accordance with Bank guidelines. Contracts for equipment and parts, with estimated costs over $50,000, will be awarded through international competitive bidding (ICB). Lots with an estimated cost below $50,000, and within an overall ceiling of $500,000, will be advertised locally. Spare parts for specific makes of equipment will be procured directly from established dealers under the same regulations for individual orders of less than $50,000, within an overall ceiling of $500,000. Reconstruction works will be carried out through unit price contracts awarded to prequalified firms on the basis of ICB. For bidding purposes, the reconstruction program has been divided into five lots ranging from 25 km to 32.2 km. Firms will be prequalified to tender for one or more lots according to their capacity. CONSULTANTS: The project will require a total of about 557 man-months of specialized services, including 173 man-months of advisory and consultant serv·fces by foreign experts, 72 man-months of services by Dominican instructors, and 312 man-months of services by the staff of local consultants engaged in engineering and supervision of reconstruction works. ~ ECONOMIC RATE OF RETURN: 50% ESTIMATED COMPLETION DATE: 1984 - 0 -