Announcement of World Bank Approves Second Loan to Assist Road Maintenance in Oman on January 14, 1982

, • It ••• ,,- "' - ~ HOlD FOR. RELEASE . . . . . .,: · .. , •WorldBallk 1818 H Street, N.W., Washingtoni D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 82/43 Contact: Melhem Salman January 14, 1982 (202) 477-5328 WORLD BANK APPROVES SECOND LOAN TO ASSIST ROAD MAINTENANCE IN OMAN Oman's national program for highway maintenance will be assisted by a second 1oan of $15 mil 1 ion, t~te Wor 1d Bank announced today. The first 1oan, a ho of·$15 million, helped to finance the national maintenance program from 1978 through 1980. The World Bank-supported project, costing a total of $48.1 million, covers the first three years of Oman's five-year (1982-87) program of highway maintenance. The government wi 11 contribute $33.1 mi 11 ion to the project, includang $19.2 mi 11 ion in foreign exchange~ The project aims to consolidate and strengthen the institution building achieved under the first project. Consultants are working with the Ministry of ••• Commt,;l')ications to improve maintenance management and training, t/md this crucial tech- nical assistance will be continued. The objective is to improve the level of ro~tine repair and upgrading carried out by the road maintenance crews, thus fostering a gradual replacement of expatriates ~t al? levels of the maintenance operations. One of the Omanes key developmental objectives is to develop its human ~esources to in- crease Omani participation in economic activity. Eight workshops being constructed under the two projects -- six under the first, two under the second -- will provide a satisfactory geographic coverage of operational servicing, repairs, and overhaul of highway maintenance equipment. The project will help to preserve the large investment that Oman has made in its road network,, The World Bank loan of $15 million to the Sultanate of Oman is repayable over 15 years, including three years of grace 1 with annual interest of 11.6%. NOTE: Money figures are expressed in U.S. dollar equivalents.  F()BM ~(). 'tl21 cs-:1a> ·· T E C HN t CA L DA T A COUNTRY: TOTAL COST: Second H"i ghway Maintenance Oman · $48. 1 mi 11 ion • BANK FI NANC I NG: $15 million, repayable in 15 years, including three yea,rs of grace, with annual interest at 11.6%. ;. OTHER. FINANCING: Gover~~ent of Ofuan, $33.1 million IMPLEMENTING ORGANIZATION: Ministry of Communications (Directorate General of Roads) Telex number: P. 0. Box 684 3390 MWASALAT MB Muscat, Su 1tan.ate of Oman r,.,PROJECT DESCRIPTI.ON: It comprises the fo11owi,ng. components: (i) periodic maintenance and minor improvements of highways; (ii) equipment and spare parts for highway maintenance, workshops, training,and pavement data collection; (iii) construction and/or rehabilitation of workshops and highway maintenance centers; (iv) '. techn i ca 1 assistance to Directorate Genera 1 of Roads and Mini S·t ry of Communications; and (v) routine highway maintenance. 8 ,PROCU.REMENT: The bulk of procurement for civil works or equi'.)ment R.urchase ~ will be carried out after international competitive bldding ·. in at\1:ordance with World Bank guidelines. Contracts for highway asphalt overlay estimated /to co~\t less than $1 mi 11 ion each wi 11 be procured under local procedures sat is factory to · Hae Bank; Contracts for the construct ion of. highway maintenance centers wi 11 be awarded .after competitive bidding in accordance with '·goverr1ment procedures. The purchase of fpav~ment data collection equipment as well as some highway equipment and spares contracts, . in the aggregate not ex!".;eed i ng $0.2 mil 1 ion, wi 11 fo,1 low government loca 1 purchase pro- cedures. ·CONSULTANTS: 100 man-months for assistance in administration, planning and operations; 150 man-months for assistance in highway mainte- nance management; and 90 man-months for training of supervisors, operators, and workshop : mechanics; p 1us 240 man-:months of direct ; n-1 i ne services of ind iv i dua 1 expe.rts and 'technicians, and a Project Coordinator throughout the project. ,: ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 44% 1985 - 0 - •