Announcement of Thirty-Two Million Dollar Loan for Toll Facilities in Mexico on February 4, 1965

11\JTERN·ATIONAL BANK FOR • Rt.CONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 ~ank Presa Release No. 65/ 6 Subject: $32 million loan for toll facilities in Mexico February 4, 1965 The World Bank today made a loan equivalent to $32 million to assist in fi- nancing further expansion of Mexico's toll transport system. The project includes the construction of four new toll roads -- Apasec'-Irapuato, Guadalajara-Zapotlanejo, Orizaba-Cordoba, and Penon-Texcoco, totaling 88 miles; the widening and improvement of the existing toll section and of the two free sections of the 130-mile Mexico- Queretaro road; the construction of thtee toll bridges -- La Piedad, Nautla and Tecolutla; and the purchase of accounting equipment and of miscellaneous equip- • ment for the operation of toll booths • The toll roads selected for the project have been given priority in the develop- ment of Mexico's highway network. They will provide shorter routes between important centers and alternative accommodation for the constantly increasing traffic. They also will provide faster and safer transportation between important industrial and agricultural areas and their markets. In addition, some of the project roads will encourage new economic activities to sp;read away from Mexico City, thus reducing the degree of economic concentration in the metropolitan &rea. Sixteen institutional investors in the United States, Switzerland and Belgium are participating in the loan, without the World Bank's gua.:r:antee, for a total of $2,533,000 of the first four maturities which fall due between April 1, 1969 and October 1, 1970. The participants are Girard Trust Bank, Philadelphia; State Street Bank and Trust Company, Boston; Compagnie de Gestion et de Banque, S.A. Geneva; The • Northern Trust Company, Chicago; National Bank of Commerce of Seattle; The National Shawmut Bank of Boston; The American Express Company, Inc., New York; Wachovia Bank and Trust Company, Winston-Salem; Bank of .America National Trust and Savings  - 2 - Association, San Francisco; Meadow Brook National Bank, New York; Banco de Ponce, • New York; Fidelity-Philadelphia Trust Company; Grace National Bank of New York; Banque Lambert, s.c.s. Brussels; Crocker-citizens National Bank, San Francisco; and The First Pennsylvania Banking and Trust Company, Philadelphia. The loan was made to Caminos y Puentes Federales de Ingresos y Servicios Conexos, an agency of the Mexican Government in charge of toll transport facilities, and Nacional Financiera, S.A., an official financing institution whicli,by law is authorized to incur external loans on behalf of the Mexican Government. Execution of the project will be carried out through the Ministry of Public Works. A general increase in highway traffic during the last decade, which has re- sulted from continued rapid economic growth, has prompted the Mexican Government to carry out a road development program to provide a better national road network. Three earlier World Bank loans totaling $95.5 million are helping with Mexico's high- way development program. One of these loans, made in 1962, was also for an ext ens ion • of the toll highway system. The other two loans were made in 196o and 1963: the first was for the building or rebuilding of l,96o miles of trunk roads and the secCl'ld was for the reconstruction, completion or new construction of about 4,100 mil.es o~ roads widely scattered throughout the co\mtry and for the acquisition of maintenance equipment .. The total cost of the present project is estimated at the equivalent of $78.1 million over a period of four years. The Bank loan is to cover foreign currency costs. The loan is for a term of 20 years and bears interest at the rate of 5!% per annum. Amortization will begin on April 1, 1969. The loan is guaranteed by the government of the United Mexican States. Including today's loan, the Bank has now made 15 loans in Mexico, totaling $471.3 million, principally for the development of electric power, agriculture, ::ailways and roads. •  • • • , . u. s. A. MEXICO SECOND TOLL TRANSPORT PROJECT Federal highways constructed or under construction, financed by previous IBRD loans ,-, ,_,------ First toll transport project (constructed or under construction) ! ~ r,:·#"'\o.·-· ,.:,~- ""·'--.?'~ \ ' . 0--- Other main highways Projected toll roads and bridges Railways .,~ "' 0 100 200 300 400 500 ::::l KILOMETERS Gulf of Mexico TECOLUTLA BRIDGE ~ PACIFIC ' OCEAN LA PIEDAD BRIDGE e. / / (HONDURAS ) DECEMBER 1964 IBRD-I438Rl