Announcement of IDA Approves Twenty-Four Million Dollars for Fifth Highway Project in Madagascar on June 25, 1979

FOR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/102 June 25, 1979 IDA APPROVES $24 MILLION FOR FIFTH HIGHWAY PROJECT IN MADAGASCAR The International Development Association (lDA), the World Bank's affiliate for concessionary lending, has approved a $24 mill ion credit to Madagascar for a fifth highway project. The project, estimated to cost $41 million, includes the resurfacing and partial rehabilitation of about 500 kilometers (km) of paved road from Fianarantsoa to the northern port of Mahajanga. Bitumen will be provided for road maintenance. Bridges will be constructed on the Antsohihy-Ambanja Road, which connects the country's northern region with the capital, Antananarivo. This improvement is essential for year-round transport and for the region's economic development. A central administrative unit will be created in the Ministry of • Public Works to coordinate road maintenance operations in the regional dis- tricts. Regional workshop facilities wil 1 be strengthened. The project covers a study to determine which maintenance and im~rovement works might be performed by labor-intensive methods. Finally, the project includes feasibility and detailed engineering studies, technical assistance, and training. The project will continue the training and maintenance efforts begun under the Fourth Highway Project. Reduced vehicle operating costs and in- creased efficiency in the road transport industry are expected, and resur- facing and rehabilitation will prevent further deterioration of the roads. If proven economically feasible, labor-intensive maintenance methods will increase job opportunities and save foreign exchange for equipment and fuel. Co-financing will be provided by a $10 million crediJ from the European Economic Community Special Action Account. The Government of Madagascar will provide $6.9 mill ion for the project. The IDA and EEC credits are for 50 years, including 10 years of grace. The credits carry no interest but bear a service charge of 3/4 of 1% per annum for administrative costs. • NOTE: Money figures are expressed in U.S. dollar equivalents FORM NO. 1121 (5-76) T ECHN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Fifth Highway Democratic Republic of Madagascar $40.9 million • IDA FINANCING: $24 mill ion, standard IDA terms European Economic Community Special Action Accot 1t credit, $10 mill ion, to be administered under standard DA terms OTHER FINANCING: Government of Madagascar, $6.9 mill ion IMPLEMENTING ORGANIZATION: Ministry of Public Works & Ministry of Transport & Supplies Government of Madagascar Antananarivo, Madagascar Telex: 22339 (both) PROJECT DESCRIPTION: It consists of: a) resurfacing and partial rehabilitation of about 500 kilometers (km) of paved roads and the provision of an initial stock of bitumen for road maintenance; b) construction of bridges for the Antsohihy-Ambanja road; c) improvement of road maintenance operation5 by i) strengthen- ing the Ministry of Public Works' central administration for road maintenance; ii) im- proving routine maintenance in two regional districts, including a regravell ing program for about 400 km of roads; and iii) improving the mechanical workshops in five regional district centers; d) a study to determine the most appropriate mix of labor and equip- ment for road maintenance and improvement works and a two-year demonstration program; e) feasibility and detailed engineering studies for a 170-km section of road; and f) • technical assistance and fellowships for the Ministry of Public Works' staff. PROCUREMENT: Contracts for rehabilitation and resurfacing of paved roads and construction of bridges and approaches will be awarded through international competitive bidding (ICB). It is expected that contractors from EEC member countries will be awarded most of the contracts financed by the EEC credit. Supervision of construction will be by consultants selected by the government and em- ployed on terms and conditions satisfactory to IDA. Bridge construction will be divided into three lots; bidding will be concurrent. Contractors must be prequal ified to bid. Minor improvements to existing regional workshop buildings will be carried out by force account, and major improvement work or new construction would be by con- tractor following local competitive bidding. Equipment and spare parts will be pro- cured through ICB; spare parts can also be obtained by means other than ICB if the gov- ernment can demonstrate to IDA that !CB will not have satisfactory results. Contracts for equipment, tools, materials, and supplies costing less than $50,000 will be awarded on the basis of suppliers' quotations. The total amount of these items will not exceed $500,000. A stock of 400 tons of bitumen will be purchased according to established local procedures. All bidding and awarding of contracts will be in accordance with Ban k g.u i de 1 i nes . CONSULTANTS: Technical assistance will be provided for staff training. Consultants for the roads component will include two civil engineers, a mechanical engineer, two cost accounting experts, and two road foremen. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 61% 1982 - 0 - •