Announcement of Tunisia to Rehabilitate Highway System on December 21, 1987

FOR IMMEDIATE RELEASE ·World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 88/30 Contact: Fawzi Rihane (202) 473-2675 TUNISIA TO REHABILITATE HIGHWAY SYSTEM WASHINGTON, December 21, 1987 -- Tunisia will invest $232.3 million in a project to upgrade and rehabilitate its highway network. The World Bank is supporting the project with a loan of $63.0 million. The project will finance a five-year program of highway rehabilitation and maintenance and includes provision of equipment, workshops, consultancy services, and overseas training. Other important features of the project include enhancement of the management of highway maintenance activities through organizational changes and strengthening; rationalization of road maintenance budgeting; reduction of the backlog of road rehabilitation, and improvement of management and training. The rehabilitation of the highway system is expected to benefit the economy through reduced vehicle-operating costs, fewer accidents and savings in travel time. The organization and administration of the Highway Department in the Ministry of Public Works will be strengthened. Since 1964, the World Bank has had an active role in developing the transport system in Tunisia through nine loans totalling $230 million which supported the expansion of the capacity of highways, railways and ports as well as their maintenance. The World Bank loan is for 17 years, including four years of grace, with a variable interest rate, currently 7.76 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances. Note: Money figures are expressed in U.S. dollar equivalents.