Tanganyika - Highway Project

FILE COPY R ESTR I CTED FILE COPY Report No. P-359 This report was prepared for use within the Bank and its affilioted organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATIONS OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF TANGANYIKA FOR A HIGHWAY PROJECT January 21, 1964  REPORT AND RECOMMENDATIONS OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF TANGANYIIt FOR A HIGNWAY PROJECT 1. I submit the followilng report and recoimmendations on a proposed development credit of $14 million to Tanganyika for a highway project. PART I - INTRODUCTION 2. In July 1961, the Tanganyika Government requested IDA assist- ance in financing a main and feeder roads program. This program was substantially modified in the light of recommendations by IDA missions which visited Tanganyika in 1962 and 1963 and additional preparatory work was carried out. The present project, which conforms with the priorities reccmaended by the Bank's General Survey Mission of 1959, consists of the improvement or construction of eight major roads of a total length of 734 miles. Credit negotiations were held in Washington in December 1963, 3. The proposed credit would be IDA's second operation in Tanganyika. A credit oVL $4.6 million to help finance a school construction and equip- ment project was signed on Decemnber 19, 1963, Tanganyika is a guarantor of the 1955 Bank loan of $24 million to the East Africa High Commission (now the East African Common Services Organization) for railways. No disbursements have yet been made under the school construction and equipment credit; the railway loan is fully disbursed. PART II - DESCRIPTION OF THE PROPOSED DEVELOPMENT CREDIT 4. The main characteristics of the proposed credit would be as follows: Borrower: Republic of Tanganyika. Anount: The equivalent in various currencies of $14 million. Purpose: To help finance the design, improvement and construction of eight major roads of a total length of 734 miles. Term and Amortization: 50 years with no amortization for the first 10 years. Repayment to be in 80 instalments,