Announcement of Liberia Receives Ten Million Seven Hundred Thousand Dollars World Bank Loan for a Feeder Roads Project on March 8, 1979

---f-{-}R IMMEDIATE RELEASE · •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/54 Match 8, 1979 LIBERIA RECEIVES $10.7 MILLION WORLD BANK LOAN FOR A FEEDER ROADS PROJECT The World Bank will assist the Government of Liberia to implement a f~ur-year program of construction, improvement, and maintenance of rural feeder roads by extending a project loan of $10.7 million. The project will lead to the construction or improvement of 700 miles of fe~der roads. It will provide for their maintenance and that of an additional 200 miles of existing feeder roads. The project will alsb provide for training of local staff in feeder road planning, con- struction, and maintenance; studies for a follow-up feeder roads program; and te~hnical assistance to develop the domestic contracting industry and to strengthen transport planning and coordination. The project's total cost -is estimated at $16.3 million. The Ministry of Public Works (MPW) will have overall responsibility for project execution, with the feeder roads program being implemented by a new • Feeder Roads Division of MPW . The project should help to reduce transport costs and ~poilage of produce in the ~ornmand are~s of the project's road~, contribute to the expansion of agricultural production, and improve·access to health, education, and other social amenities for 300,000 rural inhabitants, whose average annual per capita income is $100. The roads selected to be built or improved are located in areas of ongoing or planned agricultural development projects. Inadequacy and low quality of secondary and feeder roads (about 3,600 miles) constitute a serious constraint to the goverrlment's push for rural development. A significant number of the feeder roads had been built in the past by forestry and rubber concessionaires as short-term, low-standard haul roads, and many are merely earth tracks without adequate drainage. The situation is aggravated by the absence of road maintenance both by MPW and the local communities. The project will provide for training of road technicians, mechanics, foremen, and equipment operators at the Camp Mechlin Road Maintenance Training School, as well as on-the-job training by consultants and contractors engaged by MPW. The World Bank loan of $10.7 million to the Republic of Liberia will be for 20 years, including 5 years of grace, at an interest of 7% a year . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHN I CA L DAT A PROJECT: COUNTRY: TOTAL COST: Feeder Roads Republic of Liberia $ l 6. 3 mi l l i on • BANK FI NANC I NG : $10.7 million for a term of 20 years, including 5 years of grace, at 7% interest per annum. OTHER FINANCING: Government of Liberia, $5.6 million IMPLEMENTING ORGANIZATION: Ministry of Public Works (MPW) Monrovia, Liberia PROJECT DESCRIPTION: The project will assist the Liberian Government in building and improving feeder roads necessary to achieve its agricul- tural and rural development goals and will establish the institutions and provide staff training necessary for planning, development, and maintenance of feeder roads with the close cooperation of government agencies and the full participation of local communi-. ties. The project will support a four-year program of construction, improvement, and subsequent maintenance of about 700 miles of feeder roads, and the maintenance of · 200 miles of existing feeder roads; training of local staff in feeder road planning, construction, and maintenance; studies for a follow-up feeder roads program; technical assistance to develop the domestic contracting industry, and to strengthen transport planning and coordination. PROCUREMENT: Equipment, vehicles, spare parts, and material and supplies amounting to about $4. 1 million, will be procured tallowing international competitive bidding in accordance with World Bank guidelines. Goods manufactured in Liberia will be allowed a preference of 15% of the c.i.f. price on imported goods or the prevailing duties, whichever is lower. Contracts for equipment, materials, and supplies costing less than $60,000 may be awarded on the basis of competitive bidding advertized locally in accordance with procedures acceptable to the Bank. The aggregate amount of such purchases will not exceed $400,000. Construction of 250 miles of roads, two workshops, and two office buildings,which are widely scattered, and for which contracts will total about $6 million, will be awarded following compe- titive bidding advertised locally. Contractors for such works will be prequalified by MPW with the Bank's approval& CONSULTANTS: Local consultants for survey, design, and preparation of bidding documents will be needed especially to assist domestic contractors in submitting bids. Foreign consultants for technical assistance will be employed in agreement with and under terms of reference and conditions satisfactory to the government and the Bank. • ECON OM I C RATE OF RETURN : 17% ESTIMATED COMPLETION DATE: 1984 - 0 -