Announcement of Upper Volta to Receive IDA Credit for Fourth Highway Project on June 18, 1981

. - . FOR IMMEDIATE RELEASE ' " ' ' •\f\Jorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/104 June 18, 1981 UPPER VOLTA TO RECEIVE IDA CREDIT FOR FOURTH HIGHWAY PROJECT The International Development Association (IDA) has approved a credit of SDR 37.7 mill ion ($46 million) to Upper Volta for a fourth highway project. IDA is the World Bank's affiliate for concessionary lending. The $73 million project consists of the repair and maintenance of large stretches of paved and unpaved roads in the national road network to provide better access to rural areas. Measures to improve the efficiency of Upper Volta's Ministry of Public Works are also ir,cluded. Funds from the IDA credit will help finance a four-year program (1982-85) of road maintenance which will involve some 7,650 kilometers (km) of roads. The maintenance program provides for the purchase of necessary equipment, the con- • struction and equipping of office buildings, workshops and stockrooms, coverage of the costs of routine and periodic maintenance, the rehabilitation of gravel roads, and the resealing of about 320 km of paved roads. Over a three-year period (1982-84), some l ,640 km of feeder roads will be constructed by force account. Funds are provided for equipment, fuel and spare parts, as well as for small drainage structures to be built by local contractors. Consulting services and technical assistance will be provided to help the Ministry of Public Works carry out and supervise the project. Funds are also earmarked for about 12 scholarships which will enable the Ministry's staff to improve their knowledge in management and civil engineering. The project will benefit the country's rural population by complementing current or planned rural development projects. The upgrading and maintenance of national roads are also expected to result in lower transport rates fer goods and passengers. The Government of the Netherlands is contributing $8 million towards the total cost of the project. The IDA credit is on standard IDA terms of 50 years, including 10 years of grace, and is interest-free, except for a service charge of 3/4 of 1% per annum to cover IDA's administrative costs. The credit will be committed when funds are available . • NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit ·reflects the exchange rate existing at the time of negotiation of the credit. FORM NO. 1121 (5-76) T EC HN I C A L DAT A PROJECT: COUNTRY: TOTAL COST: Fourth Highway Upper Volta $73 million • IDA FINANCING: SOR 37.7 million ($46 million), standard IDA terms OTHER FINANCING: Government of Upper Volta, $19 million Government of the Netherlands, $8 million IMPLEMENTING ORGANIZATION: Ministere des Travaux Publics, des Transports et de 1 'Urbani sme Ouagadougou Upper Volta PROJECT DESCRIPTION: The project will include: (i) the renewal of the main- tenance equipment fleet; (ii) the construction of work- shops and office buildings; (iii) the incremental costs of fuel, spare parts, and materials for routine maintenance; (iv) the costs of fuel, spare parts, and mate- rials for the periodic maintenance of about 450 kilometers (km) of gravel roads; • (v) the rehabilitation of about 280 km of gravel roads; {vii) the construction and initial maintenance of about 1,640 km of feeder roads; and (viii) technical assist- ance, consultants, training, and scholarships to help overcome personnel constraints. PROCUREMENT: Contracts for equipment, and construction of workshops and offices will be awarded on the basis of internation- al competitive bidding (ICB), except those being financed by the Netherlands, which will be tied to Dutch procurement procedures. Fuel oil and lubricants will be pro- cured through local competitive bidding. Ma:·erials and spares for feeder road con- struction and periodic and routine maintenance will be procured through the govern- ment's local shopping procedures, after quotation from at least three suppliers. The rehabilitation of gravel roads will be according to ICB procedures, and awarded in small lots to permit the participation of local contractors, who will have a 7-1/2% preference margin. The resealing of paved roads will be subject to ICB, with a 7-1/2% preference margin for domestic contractors. CONSULTANTS: A total of about 330 man-months of consultant services will be required under the pioject in the areas of con- struction supervision and training. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 60% 1985 - 0 - •