Announcement of Somalia to Benefit from Fourth Highway Project Supported by IDA on February 17, 1983

t'"") ,1 - :h.. 1, !'. 1,Y.Y.?.~~~in~~~~~.A.•Telephone: (202) 47i-1234 IDA NEWS RELEASE NO. 83/44 Contact: Pushpa Schwartz February 17, 1983 (202) 477-3294 SOMALIA TO BENEFIT FROM FaJRTH HIGffiiAY PROJECT SUPPORTED BY IDA A major road artery in south-central Somalia will be improved with the assistance of an SDR 21.4 million ($23 million) credit from the International Development Association (IDA). IDA is the concessionary lending affiliate of the World Bank. The 216-kilorneter Afgoi-Baidoa road connecting Somalia's main port of Mogadishu with the inland agricultural area of Baidoa will be strengthened for a service life of 20 years. In addition, the road shoulders will be widened and drainage facilities along the road will be improved, reducing soil erosion. The road was constructed in 1971 under the First Highway Project, which used an IDA credit of $6.2 million. The $43.5 million Fourth High~ay Project will also finance a countrywide • road maintenance study which will draw up a five-year comprehensive road rehabilitation and maintenance program. Road maintenance training units along primary roads ( including the Af goi-Baidoa ro.:1.d) will be established. The IDA ~ credit will finance basic equipment required for urgent road maintenance n~eds ~ recommended by consultants. Technical assistance provided under the IDA credit will support the Civil Engineering Department (CED) und~r the Ministry of Public Works. Training programs will be designed and implemented for staff. Newly .graduated civil engineers from Somali National University will be assigned every year to CED, from 1983 to 1986, so that CED will employ at least 10 additional civil engineers by project completion. Previous IDA support for Somalia's road subsector totaled $22.8 million under three highway projects. The Somalia Democratic Republic will provide $4.2 million towards the cost of the project. The Arab Fund will provide a $16.3 million loan. The IDA credit is for 50 years, including 10 years of grace; it carries no interest but has a small annual service charge (0.5% on the undisbursed balances of the credit and 0.75% on the disbursed balances.) • • 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 rates existing at the time of negotiation of the credit.