Announcement of Romania Transport Project on April 15, 1993

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. 93/84 Contact: Peter Riddleberger Tel: (202) 473-1786 ROMANIA: TRANSPORT PROJECT The following is additional information about a project announced in the latest issue of World Bank News. DATE: April 15, 1993 WORLD BANK GROUP SUPPORT: World Bank loan: $120 million. The World Bank loan is for 17 years, including five years of grace, with a variable interest rate, currently 7.43 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: $405 million OTHER PROPOSED FINANCING: Government of Romania, $125 million; Cofinancing, $160 million IMPLEMENTING AGENCY: Ministry of Transport, National Administration of Roads ESTIMATED COMPLETION DATE: 1999 PROJECT DESCRIPTION: The objectives of the Transport Project are to (a) increase efficiency of the sector and accommodate expected changes in trans- port demand by improving the condition of the road network; (b) promote the selection of transport investments on the basis of economic criteria; (c) improve fiscal performance and reduce the uneconomical use of transport and energy by implementing a cost-based system of road user charges; (d) develop the execution of road works by contract; (e) build on transport policy initiatives under the Technical Assistance and Critical Imports Project (Loan No. 3363-RO), particularly with regard to investment selection and restructur- ing of the railways; and (f) support the economic reform program and encourage social stability by financing employment generation, particularly in newly privatized contracting companies. The project includes (a) rehabilitation of some 1,100 kilometers of national roads; (b) improvement of border posts; (c) material and equipment for road safety, road maintenance, vehicle inspection, and training; (d) technical assistance and training for the road subsector; and (e) track maintenance and data processing equipment, spare parts, and training for the railways.