Announcement of Senegal will Receive Thirty-Eight Million Dollars from World Bank and IDA for Highway Project on April 24, 1980

~ FOR IMMEDIATE RELEASE •\1\/orld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/83 April 24, 1980 IDA NEWS RELEASE NO. 80/55 SENEGAL WILL RECEIVE $38 MILLION FROM WORLD BANK AND IDA FOR HIGHWAY PROJECT The World Bank and its affiliate for concessionary lending, the International Development Association (IDA), have approved a $10 million World Bank loan and a $28 mill ion IDA credit for a fourth highway project in Senegal. The project will help to increase the capacity of the Government of Senegal to keep the country's road systems in adequate condition and improve road work planning and programming capacity. In addition, about 200 kilometers (km) of primary paved roads will be strengthened and rehabilitated and a two-lane paved road, about 85 km long, will be constructed between Louga and Dahra. • A th~ee-year training program for road maintenance staff, and a two-and-a- half year technical assistance program in road maintenance for the Directorate of Road Maintenance, will be financed under the project. The government's soils laboratory will be upgraded in order to increase its participation in road main- tenance activities. Pavement maintenance and strengthening programs will also be designed. The project will help to lower vehicle-operating costs and will benefit shippers and passengers. The $59.5 mill ion total cost of the project will be co-financed by a $12.9 mill ion loan from the Japanese Overseas Economic Cooperation Fund. The Government of Senegal will contribute $8.6 mill ion. The World Bank loan of $10 million is for i..0 yt:ars, including 5 years of grace, with interest at 8.25% per annum. The IDA cr~dit of $28 million is for 50 years, including 10 years of grace. It is interest free but \\In 1 carry a service charge of 3/4 of 1% per annum to cover IDA's administrative costs. NOTE: Money figures are ex~ressed in U.S. dollar equivalents • • FORM NO. 1121 (5-76) T E C HN I CA L DA TA PROJECT: COUNTRY: TOTAL COST: Fourth Highway Senegal $59.5 million • BANK FINANCING: $10 mill ion for a term of 20 years, including 5 years of grace, with interest at 8.25% per annum. 1DA FINANCING: $28 million, standard IDA terms OTHER FINANCING: Japanese Overseas Economic Cooperation Fund (OECF), $12.9 mill ion; Government of Senegal, $8.6 mill ion. IMPLEMENTING ORGANIZATION: General Directorate of Public Works Ministry of Equipment P.O. Box 822 Dakar, Senegal TELEX: 3151 SG PROJECT DESCRIPTION: It consists of: (a) a three-year training program for road maintenance staff; (b) a two-and-a-half year technical assistance program for road maintenance execution; (c) upgrading of the government's soils laboratory to strengthen its participation in road maintenance activities; (d) design of proper and systematic pavement maintenance and strengthening programs; (e) strengthening and rehabilitation of about 200 • kilometers (km) of primary paved roads; and (f) construction of the Louga-Dahra road (about 85 km) to two-lane, paved standards. PROCUREMENT: For the rehabilitation of the 200 kilometers of paved roads, contractors will be selected on the basis of International ~ompetitive bidding (ICB), in accordance with Bank guidelines. Prospective.bidders will have to be prequal ified. Road rehabilitation works will be packaged.Jn medium-sized lots, estimated to cost $10 million each, in order to support the domestic construction inJustry. The construction of the Louga~Dahra road will be executed by contractors and supervised by consultants on the basis of competitive bidding following OECF guidelines. Improvement and construction of office buildings, estimated at $195,000 net of taxes, will be awarded following locally advertised competitive bidding and in accordance with government procure- ment procedures satisfactory to the Bank. Equipment will be procured on the basis of ICB following Bank guidelines. However, e~~ipment and supplies costing under $20,000 may be procured on the basis of quotation obtained from competing suppliers provided the aggregate amount of such purchases does not exceed $300,000 for construction and supervision. CONSULTANTS: For construction superv1s1on, the government intends to retain the consulting firms SETEC International (France) and Louis Berger, International, Inc., (USA) which carried out preinvestment studies of road improvement; and, for technical assistance to road maintenance, the services of Louis Berger, International Inc. Consultants for technical assistance for training and investment studies will be appointed with qualifica- tions anrl on terms and conditicns satisfactory to the government and the Bank. • ECONOMIC RATE OF RETURN: 30% ESTIMATED COMPLETION DATE: 1984 - 0 -