Announcement of Ecuador’s Sixth Highway Project to Receive World Bank Loan on June 26, 1980

FOR IMMEDIATE RELEASE ~orldBank 1818 H Street, N. W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE N0.80/130 June 26, 1980 -- ECUADOR'S SIXTH HIGHWAY PROJECT TO RECEIVE WORLD BANK LOAN Ecuador will carry out the construction or improvement of about 1,500 kilome- ters (km), of secondary and feeder roads with the assistance of a World Bank loan of $55 mill ion. About 540,000 people are expected to have better access to markets and to health and educational facilities as a result of the project. The highway project is the sixth to be support by the World Bank In Ecuador. The total cost of the project is estimated at $104 million. It will be implemented in the coastal provinces of Guayas, Los Rios, and El Oro, considered amongst the most important, agriculturally, in the country. The project also contemplates the strengthening of feeder road planning • nation-wide and the preparation of follow-up feeder road projects, the Implement- ation of a 1981-84 maintenance program for the main road network, and the rein- forcement of secondary and feeder road maintenance in the three provinces. Technicai assistance for transport planning and for training of the Ministry of Public Works and Communications and provincial personnel will also be provided under the project. The provincial feeder roads component aims at facilitating travel In rural areas of the three coastal provinces. Rural roads in this area are poorly main- tained and are impassable from three to six months a year during the rainy season. By improving or constructing some 1,500 km of all-weather feeder roads, a large proportion of the more than 90,000 farm families (about 540,000 persons) 1 iving in the three provinces wfll have a better and more rel fable way of marketing thefr agricultural output and better access to health and education servfces. The $55 mill ion World Bank loan to the Republic of Ecuador is for a term of 17 years, including 4 years of grace, with interest at 8.25% per annum. The World Bank and the International Development Association (IDA), have provided a total of $68 mill ion for previous five highway projects in Ecuador. IDA is the World Bank's affiliate for concessfonary lending • • NOTE: All money figures are expressed in U.S. dollar equivalents. FOAM NO. 1121 (5-76) T ECHN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Sixth Highway Ecuador $1 04 mf 11 ion • BANK FINANCING: $55 million for a term of 17 years, including 4 years of grace, with interest at 8.25% per annum OTHER FINANCING: Governme~t of Ecuador, $49 million IMPLEMENTING ORGANIZATION: Ministerio de Obras POblicas y Communicaciones (MOP) 6 de Diciembre 1184 Qui to, Ecuador Telex: 2353 MINOP ED PROJECT DESCRIPTION: The project consists of: (a) design and construction or improvement of about 1,500 kilometers (km) of feeder and secondary roads in the provinces of Guayas, Los Rios, and El Oro; (b) acqutsttion of equipment for maintenance of all 6,000 km of feeder and secondary roads in the • three provinces; (c) strengthening of the planning, construction,and maintenance of feeder roads at the national level, through the establishment of a Feeder Roads Coordination Unit in MOP; (d) preparation of feasibility studies to help develop follow-up feeder road projects as part of a country-wide program; (e) implementation of a 1981-84, four-year maintenance program for the main road network, including the purchase of equipment and spare parts, and coordinated measures to build up MOP 1 s maintenance capability; (f) continuation of technical assistance for transport planning; and (g) training programs for MOP and the three provinces roads' personnel. PROCUREMENT: All equipment contracts over $50,000 will be procured through international competitive bidding in accordance with Bank guidel Ines. MOP will purchase equipment in contracts below $50,000 and within an over- all ceiling of $500,000, in accordance with Its own local competitive bidding proce- dures, which are satisfactory to the Bank. The acquisition of spare parts, In contracts of less than $50,000 and aggregating no more than $500,000, will be through negotiated purchases from established and reliable suppliers. Civil works included In the project will be let in accordance with MOP's local competitive bidding procedures except that the embas~ies of Bank member countries and Switzerland will be notified of civil works bldding 45 days prior to publication of the call for bids. CONSULTANTS: About 640 man-months of technical assistance will be provided under the project, Including (a) final engineering of feeder roads to be built or improved under the project; (b) studies to prepare follow- up feeder road projects; (c) technical assistance to the Feeder Roads Coordination Unit, for road maintenance, and for transport planning; and (d) training of highway personnel within MOP and in the three provinces benefitted by the project. ~ ECONO~IC RATE OF RETURN: 46% for the feeder road program and over So% for the nation-wide maintenance program ESTIMATED COMPLETION DATE: 1984 - 0 -