Announcement of IDA Assists Rural Roads Project in India on November 20 , 1980

FOR lMMEDIATE RELEA ~orldBank 1818 H Street, N. W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 81/19 November 20 , 1980 IDA ASSISTS RURAL ROADS PROJECT IN INDIA The International Development Association (IDA), an affiliate of the World Bank, today announced the approval of a credit of SOR 26.7 mill ion ($35 mil lion) to help finance the construction and improvement of about 700 kilometers of all-weather rural roads to link farms and markets in India's Bihar State. The $52.9 mill ion project is part of a package of investments in irrigation, seeds, fertilizer, pesticides and extension services being under- taken by the Government of Bihar to increase agricultural production. By providing all-weather road communications between farms and markets, the project seeks to help Bihar reap the full benefits of these investments. The project is expected to benefit some two mill ion people. Road • construction and improvement will generate about 15 million man-days of direct employment spread over four years. Road maintenance will require 60,000 man- days per year after project completion. Additional employment created by the project will mainly benefit landless peasants and small farmers. The IDA credit to India is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% to meet IDA's administrative costs. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit. • FORM NO. 1121 (5-76) T E C H N I C A L D A T A PROJECT: COUNTRY: TOTAL COST: Bihar Rural Roads India $52.9 mi 11 ion • I DA FINANCING: SOR 26.7 million ($35 million) standard IDA terms OTHER FINANCING: Governments of India and Bihar IMPLEMENTING ORGANIZATION: Rural Engineering Organization c/o Rural Development Department Government of Bihar Patna, Bihar PROJECT DESCRIPTION; The project provides for the construction, improvement or strengthening of about 700 kilometers of rural roads in Bihar, and the improvement of routine and periodic maintenance, which would permi~ al 1-weather transport between farms and markets. ~ PROCUREMENT: Since the contracts for road wor'k will be individually small and scattered over much of the state, they will not be attractive to foreign bidders. Therefore, they will be awarded through local competitive bidding (LCB). To ensure standardization, adequate maintenance and ready availability of spares, procurement of vehicles, equipment and spares will be through LCB. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 21% 1985 - 0 - •