Announcement of World Bank Approves One Hundred Million Dollars Loan for Argentina Highway Sector on June 2, 1983

.FOR IMMEDIATE RELEASE. eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 83/97 Contact: Ciro Gamarra June 2, 1983 (202) 477-5320 WORLD BANK APPROVES $100 MILLION LOAN FOR ARGENTINA HIGHWAY SECTOR The World Bank is providing a loan of $100 million to help finance the 1983-86 Highway Investment Programs of the government and the participating provinces. The project, which has a total cost of $560 million, will be administered by the National Highway Directorate (DNV). A variety of subproject~ will involve reconstruction of existing roads and construction of new ones; construction of urban beltways and access roads; installation of road signs and markings; and other road improvement subprojects. Initial works could include 19 road sections that are not being financed from other sources. These sections are scheduled for reconstruction, paving, upgrading, or expansion and range in length from 10 to 86 kilometers. • The project will result in savings in vehicle operating costs which will directly benefit road users. Other objectives are to strengthen provincial planning capabilities through technology transfer from the DNV to the provincial authorities; define appropriate road maintenance management systems and budgetary requirements; support the DNV 's traffic safety program; and establish the role of the National Directorate for Transport Policies and Programming. Technical assistance will be provided to the National Highway Directorate to supplement its capacity in road and bridge design, mountainous road maintenance, traffic safety, and other specialized areas. Technical asuistance will also be provided to the National Directorate for Tr& sport Policies and Programming to improve its planning and executing capability. The World Bank has previously made four highway loans to Argentina, totalling about $229 million, which helped finance the construction or improvement of some 5,500 kilometers of national roads. The $100 million Bank loan includes a capitalized front-end fee of about $250,000; it is repayable in 15 years, including three years of grace, at an annual rate linked to the cost of Bank borrowings. The loan also carries an annual commitment charge of 0.75% on undisbursed balances • • NOTE: Money figures are expressed in U.S. dollar equivalents.