Announcement of World Bank Supports Eighth Highway Project in Honduras on August 28, 1980

FOR IMMEDIATE RELEASE . . ~orldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/ 13 August 28, 1980 WORLD BANK SUPPORTS EIGHTH HIGHWAY PROJECT IN HONDURAS About 465 kilometers (km) of feeder and second1ry roads will be constructed or improved in Honduras through a highway project for which the World lank approved a $28 million loan. This is the eighth project in Honduras' highway sector to be supported by the Bank. The eighth highway project has an estimated total cost of $40.8 mill ion. it is designed to assist the Government's efforts to facil ltate access to rural areas, to protect past investments in the highway network, and to continue institutional improvements in highway administration .. • The project consists of the construction of about 350 km of feeder roads in the Guayape, Yoro, La Masica, and other valleys. It also Includes the imorove- ment of three secondary roads, Rio Dulce-El Porvenir, Danli-Santa Marra, and Tel ica-San Francisco de la Paz, with a total length of 115 km. The project will also provide maintenance equipment and expand the capacity of the Directorate General for Maintenance of Highways and Airports (DGM), givinq particular emphasis to increasing its efficiency tnrough better management, better use and upkeep of equipment, and training of personnel. The DGM is responsible for the maintenance of the road network in Honduras. The construction of the feeder roads will improve access to rural areas with predominantly small farms and will facilitate the transportation of mainly agricul- tural produce to the markets. The rural population will 1dso benefit from improved access to schools, health, and other public facilities. Since 1955, the World Bank has made six loans and two credits, totalling $96.6 million for seven projects in Honduras' highway sector. The $28 mill ion World Bank loan to the Republic of Honduras has a term of 20 years, including five years of grace, with ir1terest at 9.25% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T ECHNI CAL DAT A PROJECT: Eighth Highway • COUNTRY: Honduras TOTAL COST: $40.8 million BANK FINANCING: $28 mill ion for a term of 20 years, including five years of grace, at 9.25% interest per annum OTHER FINANCING: Government of Honduras, $12.8 mill ion IMPLEMENTING ORGANIZATION: Secretar(a de Comunicaciones, Obras Publ icas y Transporte (SECOPT) Barrio La Balsa Cable: SECOPT Comayaguela, DC Honduras PROJECT DESCRIPTION: It consists of: (a) construction of about 350 kilometers (km) of feeder roads in selected agricultural valleys, including purchase of vehicles for supervision; (b) improvement of about 115 km of secondary roads; (c) purchase of maintenallCe and workshop equipment, including spare parts; and (d) technical assistance for maintenance management and training. • PROCUREMENT: Maintenance and training equipment, totalling about $11 million, w111 be procured through international competi- tive bidding (ICB). However, contracts with an estimated cost below $50,000, within an overall ceiling of $500,000, will be advertised locally in accordance with SECOPT regula- tions which are satisfactory to the Bank. 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. Construction of feeder roads, totalling about $7 mill ion, will be carried out by local contractors selected in accordance with local procedures ac- ceptable to the Bank, or by the Directorate General for Highways' field offices, using equipment rented from local equipment owners. Contrac~s for the improvement of secondary roads will be awarded through ICB among prequal ified contractors. CONSULTANTS: About 350 man-months of services by foreign consultants and 220 man-months by local consultants will be required for the supervision of construction, technical assistance and training components. ECONOMIC RATE OF RETURN: a) Feeder roads -- at least 11% • b) Secondary roads and maintenance and training program -- 47% ESTIMATED COMPLETION DATE: 1984 - 0 -