Announcement of Colombia Third National Roads Sector Project on March 30, 1992

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 92/61 Contact: Ciro Gamarra Tel: (202) 473-8721 COLOMBIA: THIRD NATIONAL ROADS SECTOR PROJECT The following is information on a project approved by the World Bank's Board. DATE: March 30, 1992 WORLD BANK GROUP SUPPORT: World Bank loan: $266 million. The World Bank loan is for 17 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $414 million OTHER FINANCING: Government of Colombia, $148 million IMPLEMENTING AGENCY: Ministry of Public Works and Transport ESTIMATED COMPLETION DATE: 1997 PROJECT DESCRIPTION: The objectives of the Third National Roads Sector Project are to: (a) reduce the cost of transport, especially long-distance export-import traffic; (b) improve the project preparation capacity within the Ministry of Public Works and Transport (MOPT) and the planning and implementa- tion of rolling five-year investment plans; (c) improve road maintenance planning and practices; (d) rationalize the structure of MOPT; (e) provide a smooth transfer of part of the national road system to the autonomous regional governments; and (f) improve the environmental management capacity of MOPT. The project will finance a portion of the government's five-year road invest- ment program, including: (a) completion of about 2,000 kilometers of roads started under the Second National Highways Sector Project (Ln. 2829-CO) and projects started with MOPT's own funds; (b) undertaking 12 new road projects, totaling about 400 kilometers; (c) a bridge rehabilitation program; (d) a river training and dredging program; (e) the purchase of equipment and rehabilitation works; (f) road safety works; and (g) technical assistance, studies, and training. FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.*Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 92/LAC Contact: Antonio H. Pimenta-Neves Tel: (202) 473-8722 BRAZIL MODERNIZES ITS URBAN TRAIN SYSTEM WITH WORLD BANK SUPPORT WASHINGTON, March 31, 1992 -- The World Bank today approved a $126 million loan t6 Brazil to help the federal government decentralize and modernize its urban train system (CBTV) and to transfer its operation and infrastructure in Sao Paulo's metropolitan region to the state government. The $281 million project will be executed by the Brazilian Urban Train Company (CBTU) over a period of five years. The federaly-controlled CBTU runs urban train systems in nine metropolitan regions in Brazil. Through the project, the federal government will triansfer control and management of CBTU's network in Sao Paulo to the state government by December 1993, in order to improve its operation and its integration with other systems. Since 1980, CBTU has lost more than 1 million passengers a day in its Sao Paulo and Rio de Janeiro systems alone due to equipment shortages and failures, power supply problems, lack of appropriate signalling, and frequent accidents. About 90 percent of the loan will finance the rehabilitation of stations, tracks, signalling, power equipment, and the construction of passenger transfer points required to integrate the urban trains with other modes of transportation in Sao Paulo. Ten. percent of the proceeds will finance the implementation of institutional reforms at CBTU. The train company will enhance cost recovery bS improving integration of different transportation systems, expanding capacity, and reducing subsidies. In addition, it will seek greater private sector participation in several operating and maintenance activities. In Sao Paulo, the project will promote the integration between CBTU, FEPASA (the state railway company) and feeder bus systems. Tariffs will reflect peak and off peak services and subsidies will be better targeted to benefit the poor. The World Bank loan is for 15 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undixbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.