Announcement of First Bank Loan to Jamaica on April 8, 1965

• INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 ------------------------------------------------------1 Bank Press Release No. 65/16 April B, 1965 Subject: First Bank Loan to Jamaica The World Bank has made a loan of $5.5 million to Jamaica for a high pri- ority ro.ad project. This is the first Bank loan to Jamaica. It will assist in financing the improvement of three sections of road on the main route from King- ston, the capital, to the north coast. These roads are among the most heavily traveled in Jamaica and their improvement will relieve congestion, speed up travel time, and sharply reduce transport costs. The New 'fork Branch of Barclays Bank, D. C.O. and The Bank of Nova Scotia, Toronto, are partici.pating in the loan, without the World Bank's guarantee, to the extent • of $282,000 represePting the first two maturities and portions of the next four maturities which fall due between July 15, 1970 and January 15, 1973. Jamaica has an area of 4,400 square miles and, with a population of more than 1.7 million, is one of the most densely populated countries in the world. The economy is based primarily on exports of sugar, bananas, alumina and bauxite -- it has the larges~ workable bauxite resources in the world -- and tourism. Efforts .are being made to diversify the economy and there is an expanding industrial sec- tor. Roads are the chief means o~ transport; the railway is used mainly for the movement of bauxite products, and internal air transport is now being developed. The country has a relatively extensive road network; there are about 2,700 miles of roads, excluding local authority roads; 924 miles are main roads connecting all the major towns and important agricultural and inc:Justrial areas. The standards to which the roads were originally constructed, however, are becoming inadequate for today's ~ type and volume of traffic, particularly with regard to alignment and width.  - 2 - ' Between 1953 and 1963, the number of motor vehicles increased from about 19,000 to 72,000, an annual increase of 15%, and substantial traffic growth can be expected ~ in the future. A significant part of public investment under Jamaica's Development Plan for 1963-68 was allocated to highway improvements. The Govermnent decided to include the three road sections being built with Bank assistance in its road construction program after the roads had been given priority by the United Kingdom Road Research Laboratory which had recently undertaken a survey of Jamaica's highway system at the request of the Government of Jamaica. The three roads being improved or rebuilt with Bank assistance are all part of the main thoroughfare from Kingston to the north and west of Jamaica. A 15-mile four-lane road will be constructed between Kingston and Spanish Town, the third largest city. This road, now two-lane, is the most heavily traveled highway in • Jamaica. The Kingston area already has a population of 400,000 and future expan- sion will be toward Spani&. Town because of mountains on the other sides. In both cities there is a large number of small industries adjoining the road. The second road will be a two-lane road between Spanish Town and Bog Walk, a distance of about 7\ miles. The existing road runs in the bottom of a deep gorge and is subject to frequent flooding. The road will be relocated, involving difficult cuts in stee_p rocky slopes, to avoid the necessity of detours during floods. The third road ex- tends about four miles from Moneague, north of Bog Walk, to Crescene·Park; the present narrow, winding road will be relocated and widened. Execution of the project is the responsibility of the Ministry of Connnunica- tions and Works. Since it would impose a ve~y heavy work load on the Ministry, out- side consultants will be employed to review the designs, prepare specifications and final documents and supervise construction of the Kingston-Spanish Town and Spanish Town-Bog Walk sections. Construction contracts will be awarded on the basis of international competitive bidding except for the short Moneague-Crescent Park road which will be built by the Ministry itself. •  - 3 - • • 1 The project is scheduled for completion in 1970 at a total cost estimated at the equivalent of $11 million. The Bank loan will cover half the total and the remaining costs will be met by the Government of Jamaica. The Bank loan is for a term of 25 years and bears interest at the rate of 5\% per annum. Amortization will begin in July 1970 • • •