Announcement of IDA Approves Fifteen Million Dollars for Urban Development Project in Burundi on June 26, 1980

. FOR 1JMEDIA TE REL.EASE · •• d eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (2Jh 393-6360 IDA NEWS RELEASE NO. 80/106 June 26, 1980 IDA APPROVES $15 MILLION FOR URBAN DEVELOPMENT PROJECT IN BURUNDI The International Development Association (IDA) has approved a credit of $15 million to help finance a project for improving living conditions of low- income urban · families in Burundi. I DA is the Wor 1d Bank's aff i 1 i ate for con- cessionary lending. The $16.7 million Urbat1 Development Project is the first official effort to promote low-cost housing In the eastern African republic. It wi 11 also lay the foundation for a replicable model for low-cost housing programs in the country. The project, located in Bujumbura, the country's capital, will provide for basic infrastructure, such as additions to public lighting, and resurfacing of streets, benefitting 16,700 households in seven neighborhoods. Loans will • also be made for the construction of houses and improvements in existing dwell- ings as well as preparation of 780 sites and services plots . In addition, three primary schools will be constructed and 11 existing ones renovated. Local artisans will be trained and will have access to credit for expansion of their businesses. Provisions have also been made for project management and technical assistance especially to the Bujumbura Municipality to improve the agency's capacity to maintain streets and buildings, collect solid waste and recover costs. The IDA credit is for 50 years, including 10 years of grace. It carries no interest but will bear a service charge of 3/4 of 1% per annum to cover administrative costs. The Government of Burundi will bear $1.7 million of the cost of the project. NOTE: Money figures are expressed in U.S~ dollar equivalents . • FOAM NO. 1121 (5-76) T ECHNI CAL DA T A PROJECT: COUNTRY: TOTAL COST: Urban Development Burundi $ 16 . 7 mi 11 i on • IDA FINANCING: $15 million, standard IDA terms OTHER FINANCING: Government of Burundi, $1,7 million IMPLEMENTING ORGANIZATION: Ministry of Public Works Equipment and Housing Bujumbura Burundi. Telex: c/o MINAFFEXT 65 or CABINE PUBLIQUE 81. PROJECT DESCRIPTION: It includes: (a) prov1s1on of basic infrastructure, such as additions to public lighting and resurfacing of streets in 7 neighborhoods, loans for house construction and improvements, prep- aration of 780 sites and services plots; (b) provision of training and credit for artisans; (c) construction of 3 primary schools and renovation of 11 existing ones; • (d) improvement of the Bujumbura Municipality's capacity to maintain streets, build- ings, collect solid waste and recover costs; and (e) project management and technica·1 assistance. PROCU.REMENT: Civi 1 works and equipment contracts for an aggregate value of $3.86 million will be awarded on the basis of international competitive bidding. The rest will be procured after local competitive bidding (open also to foreign bidders) or through force account. CONSULTANTS: Advisers will provide technical assistance and training to the agencies ECONOMiC RATE OF RETURN: ESTIMATED COMPLETION DATE: 19% on 68% of project costs 1985 - 0 - •