World Bank Document

• INTERNATIONAL DEVELOPIVIENT ASSOCIATION 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Public Disclosure Authorized IDA NEWS RELEASE NO. 75/29 MAY 23, 1975 $15.5 MILLION FOR HIGHWAYS IN THE PEOPLE'S DEMOCRATIC REPUBLIC OF YEMEN The International Development Association (IDA), an affiliate of the World Bank, is extending a credit of $15.5 million to help finance a $32 million highway project in the People's Democratic Republic of Yemen (PDRY). The Kuwait Fund for Arab Economic Development is considering a loan of $15.3 million for the project. Public Disclosure Authorized Highways are the principal mode of internal transport in PDRY. How ever, the present network of 710 kilometers of engineered roads and 4,800 kilo meters of motorable tracks is, both in terms df extent and quality, insufficient to meet the demand for transport of goods and passengers. The project to be assisted by IDA and the Kuwait Fund is part of the Government's efforts to provide PDRY with an efficient country-wide land transport system. • The main component ·of the project is the construction of a 358- kilometer road between Al Mukalla and Sa~un, with a branch to Ash Shihr. The road will connect two regions with major potential for agriculture and fisheries development which at present are inadequately served by tracks. The project Public Disclosure Authorized also includes provision of road maintenance equipment and spares, technical assistance, training of personnel and engineering and economic studies for another important road. The project, when completed in 1979, will bring major benefits to PDRY. It will reduce transport cost and travel time between the Wadi Hadramaut and the population·centers along the coast and thereby improve export conditions for agricultural products from the Wadi Hadramaut region and open up a new and sizable market for the coastal fishing industry. The IDA credit to PDRY is for 50 years, including a 10-year grace period. It is interest-free, except for a service charge of 3/4 of 1% to meet IDA's administrative expenses. The roads to be bn.ilt under the project were Public Disclosure Authorized identified by a feasibility study financed by an 1DA credit of $1.6 million • extended in 1971 . Note: Money figures are expressed in US dollar equivalents. T E C H N I C A L D A T A • PROJECT: Second Highway COUNTRY: The People's Democratic Republic of Yemen TOTAL COST: $31.8 million IDA FINANCING: $15.5 million, standard IDA terms OTHER l' lNANC lNG: The Kuwait Fund for Arab Economic Development is considering a loan of $15.3 million. The PDRY Government will contribute $1.0 million. IMPLEMENTING ORGANIZATION: Ministry of Public Works, Aden, People's Democratic Republic of Yemen. PROJECT DESCRIPTION: The project includes: 1) construction of 358 km of road between Al Mukalla and Saywun, with a • branch to Ash Shihr, including management and engineering services; 2) engineering and economic studies of the 320-kilometer Nagabah-Ataq-Beihan-Al Ayn road (the studies will involve about 80 man-months of expert time); 3) technical assistance in planning (about ·43 man-months) to, and fellowships (about 96 man-months) for staff of the Ministry of Public Works; 4) procurement of road maintenance equipment and spare parts; and 5) re financing of the outstanding balance of an earlier engineering credit (S-12 of November 17, 1972). PROCUREMENT: Construction of the project roads will be through a government construction unit, assisted by the Crown Agents or another competent management group. Procurement of construction equip ment and materials will be through international competitive bidding in accordance with the Bank Group's Guidelines. For major construction equipment items, quotations for used equipment will also be obtained. Procurement of road maintenance equipment and spare parts will be on the basis of international competitive bidding. CONSULTANTS: The Crown Ag,ents or another competent foreign management group will be engaged to provide management and engineering services to the Government construction unit. Dar Al Handasah will provide experts to assist the MPW in construction supervision. Competent internation al consultants will be employed to carry out the engineering and economic studies . ECONOMIC RATE OF RETURN: 15% • ESTIMATED COMPLETION DATE: March 31, 1979 .

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