Announcement of a World Bank Loan to Upgrade Rural Roads in Tunisia on January 31, 1995

JAN 31 '95 04:19P W MNAC4 2024777978 P.3 I;a) it17 %* S I.I -world Bank BANK NEWS RELEASE NO. 95/52 MENA CONTACT: JEANNIE YAMINE (202)473-2318 $51.5 MILLION GOES FOR RURAL ROADS UPGRADING IN TNISIA Washington, D.C., January 31, 1995 - About 715 kilometers (Ian) of rural roads throughout Tunisia will be upgraded to appropriate standards under the Government's $88.7 million Rural Roads Project. The World Bank approved a $51.5 million loan to help with the upgrading plans. The loan will also support the rehabilitation of an additional 300 kms of graVel roads to be undertaken by the private sector. "The project calls for implementing a reform program which would decentralize road management responsibilities to local governments and start a major shift to road maintenance by contract," World Bank task manager Jaffar Bentchikou explained. "The project will also help improve rural road standards, and reduce disparities between urban and rural areas," Mr. Bentchi.kou added. Shifting to road maintenance by contract is a major element of the project's institutional reforms component. Increased productivity and quality of road maintenance works are expected to result from the shift. Plans for restructuring the public sector and1for budgetary reforms under this first component are expected to promote accountability and transparency. Decentralizing the management of rural roads without developing new entities will be a major aim of the public sector reforms. On the budgetary front, reforms will be undertaken to put in place mechanisms for instituting discipline and accountability, and improving the balance between maintenance and investment. JAN 31 '95 04:20PM WB MNACA 2024777978 P.4/4 The periodic rehabilitation of PROECr COST gravel roads is the second component ($Million) Total of the project. It represents a first A st R m step in developing private sector ovk B, Pilot Periodic Rehabilitation 6.4 involvement in road maintenance activities. Rehabilitation of some 300 C. Upgrading Rurl Roads 65.1 kms of gravel roads will be gendes 14.8 TOTAL PROJECT COST 8. undertaken by private sector contractors in ten Governorates. The upgrading of 715 km of rural roads is the project's third FINANCING PLAN component. It will improve access to (NCIllioN rural areas, reduce disparities between Tow urban and rural areas and improve the IBRD S1.5 delivery of social services to the Govrm 37. poorer population groups. The TOTAL 8.7 optimum use of gravel road techniques will lead to a reduction of life-cycle costs of rural roads. The World Bank loan is repayable in 17 years, including a five-year grace period, at the Bank's standard variable interest rate. The government will finance $37.2 million of the project costs. 2