Announcement of Three Million Seven Hundred Thousand Dollar Credit to Togo for Roads on October 9, 1968

FOR IMMEDIATE RELEASE • INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 68/25 Subject: $3.7 milli~n credit to October 9, 1968 Togo for roads The first operation by the World Bank Group in Togo will be undertaken with the granting of a $3.7 million credit from the International Development Associa- tion (IDA), announced today, for a road maintenance program and pre-investment studies. Togo is one of the most densely populated of the small countries in West Africa. Agriculture is the main occupation, generating about half the gross ciomestic product and 70% of all exports, but industry has been grdwing in re- • cent years. The largest industry is phosphate mining, which is served by its own railroad. There is also a public railr~ad, but roads arc by far the most important means of transport. While the basic road network is well planned, providing access to most urban and rural population centers, the cust of road transport is high and rising as a result of prolonged neglect of road maintenance. The Department of Public Works has been hampered by the poor condition of its equipment and lack of adequate personnel and funds, so that a backlog of maintenance work has developed. As a result, the condition of the national network of about 1,000 miles of roads has deteriorated and long sections have to be closed after heavy rains. The four-year maintenance program, to be assisted by the IDA credit, • provides for the purchase of maintenance and workshop equipment, on-the-job /mor:e 1 • IDA Mo. 68/25 - Togo - Ronds 2 - training, with the assistance of consultants, of personnel at all levels -- inspectors, operators and mechanics -- and the adoption of improved methods of operation. The program will result in a substantial reduction in vehicle operating costs and will lead to savings in capital expenditures on road re- construction which can be postponed if the present system is well maintained. Consultants will be retained by the Government to undertake feasibility studies of about 270 miles of secondary roads, with subsequent detailed engineering and the preparation of bidding documents for about 180 miles if found to be technically feasible and of high economic priority. The maintenance program will be carried out by the Department of Public Works with the assistance of consultants. An amount of $2.7 million of the • IDA credit will be applied to capital expenditures. The Togolese Government will finance local capital expenditures amounting t" $450,000 and all recurrent maintenance costs during the four-year period estimated at the equivalent of $5.9 million. The remainder of the IDA credit will finance the foreign ex- ~hange costs of consultants' services for the pre-investment studies. The IDA credit is for a term of 50 years. It is free of interest but a service charge of 3/4 of 1% will be made to meet IDA's administrative costs. - 0 .. •