Announcement of World Bank to Lend to Romania for Rail and Road Transport Improvement on July 9, 1981

0 Cr .> ·. ~ FOR fMMEDlAT_{ RELP;\SE ·.• .. . . . • ofld.Bank ,i (_'.. • ______________________ ________ I 0 _________________ ' . . ·~ ~ ' . 1.81 B~H Stre~t, N.W., Washington; D.C. i.0433 1 U.S.A.• Telephone: {202) 477-1234 0 .1.' .......,. _1 ,_ ,,_.,,,,_ BANK NEWS REL~ASE NO. ~2/3 July 9, 1981 WORLD BANK 'TO LEND TO ROMAN'lA FOR. RA I l .CANO. ROAD· TRANSPORT IMPROVEMENT Ro,:nania 1 s efforts to improve fhe efficiency of it$i; rail and road transport systems will be assisted by a $125-milfiot, World 'Bank foan, to the Investment Bank" of Rpmania. The ~oan will help finance high-prior·ity items included in Romania's 1981-85 railway andt"'Lq~way investment plans. The project is designed to relieve traffic ' 0 congestion~.,.: ;me ofRomania's most heavily fraveled rail and road thoroughfa.re$, provide acccis's·to important development areas, and imp~ove resource al location in the transport sector. . ,funds from the .Wor 1d Bank loan wi 11 . he 1p,.f i nance the construction of two new rail lines•totaling 77 kilpmeters (km), together with tunnels, bridges, and viaducts; the doubling of three main line sections of about 125· km; electrification of 470 km of main Jines; the procurement of special steel f9r the Cernavoda bridge over the Danube; and .the purchase of about 330 freight c-rsi Works to bs carried out on the road network include: the paving of 85 ki lomete{rs of gravel roads; the widening of one road from two to four lanes in an important ·>'V agricultural and indu?tri'al area; and ttte construction of a new 17>kilometer-long road between Fetesti and Cernavoda on the two arms of the Danube in eastern Romania to shorten the dastance between Bucharest and the Black Sea port of Constanta. A traffic optimization study, to' be carried out by Romanian consultants, wi 11 be financed under the project, and will' emphasize energy conservation, improved inventory control, and the relationship between transport tariffs and service costs. Funds are also e~rmarked fo~ the services of foreign consultants that may be required for the traffic study, and~. for study trips abroad by Romanian transport experts to familiarize them with improvements in car control and locomotive utilization, as well as modern highway maintenance practices. Road and rail users from all sectors will benefit from the ~avings in congestion costs, redu'ced travel time, and gr'eater safety and convenience resulting from the project. In addition to providing better access to mining, thermaJ power, and agri- cultural operations, the improved transport 'linkages will cre~te operating cost savings which will accrue to.the economy as a whole. The World Bank loan, which has the guarante~ of the Socialist Republic of Romania, has a term of 15 years, including a three-year· grace period, and bears interest at 9.6% per annum. NOTE: Money figures are expressed in U.S. dollar e·quivalents.  PROJ'ECT: Li.ind Transport • COUNTRY·: RomanJa 1 fl i ~-, \\ TOT~L COST: " (\ $16 7. 1· mi 11 ion - J) BANK 'FINANCING: $125 milfion, for lS years, including three years of grace, with interest at 9.6%-,per 'annum 1 OTHER FINANCING: Railway Internal Funds, $186.7 million " State Res<?ur~es, $455.4 million 'IMPLEMENTING ORGAN·IZATION: Railway Construction Central Minl·stry of Transport and Communications (for railroads) 1 Bd. ·,-Dini cu Go1escu, 38 Bucharest, Romania '{same for Directorate of Roads) PROJECT DESCRIPTION: :The project's railway components include: i)' construction of , 77 kilometers (km) of two new lines· together with about 7 kll'.I of tunnels, ,3 km of bridges, and 2 km of viaducts; ii) doubling of three H_ne sections of approxi~ately 1f5 ~m; i--ii) electrificatio~ of 470_route km ?f main ,lines; iv) procu_reme• of special steel for the superstructure dt the Ce,·navoda bridge over the Danube; and v ) . procurement of about 330 freight cars. The highway components include: i) paving.. of three two-1 ane gravel roads (85 km); ,i O widening of one road (6 kmr from two to four 1anes; and iii) construction-of 17 km new road between Fetesti and Cernavoda on the two ar~ls of the Danu~e to shorten the distance between Bucharest and CQnstant,. Technical assistance for a traffic optimization study and study visits abroad for Romanian officials for training in car cont_rol, lo,comotive uti 1 ization,and highway maintenance. are included. , , PROCUREMENT: Goods to be procured through international cq,mpetitive 'bidding ('ICB) incl,ude: rails, steel for concrete sleepers, points and crossings, track fittings, copper contact wire and substation equipment for electrifica- tion, cables' for signalling and tE!lecommunication required for new Hnes and for doubling , and electrification of, track, specia1 steel for the; Danube 'Bridge at Cernavoda, telecommuni- cation equipmen,t ,(including radio .. telephone systems}, and 'a limited number of freight cars'. For the highway component, ICB wi 11- be used to procure road construction and maintenance equipment, bitumen, and reinforcing steel. Romanian manufacturers will b~ allowed a pre- ·ferehce margin of 15%, or the applicable customs duty, whichever is lo,,er, for purposes of bid ev~luation. . " - CONSULTANTS: About 150 man-months of locin "consurtant service_s and services of foreign ,cp,nsultants as may be required for ·a limited period. ECONOMIC RATE O:F . ESTIMATED COMPLETION DATE: RETURN: 20% 1986 - 0, - •