Iraq: World Bank Approves US$135 Million IDA Credit for Emergency Road Rehabilitation

Contact
In Washington: Dina EL Naggar  (202) 4733245
Delnaggar@worldbank.org

WASHINGTON, June 29, 2006 – The World Bank’s Board of Executive Directors today approved a credit to the Government of Iraq to rehabilitate highly damaged highways and rural roads and reestablish critical river crossings.

The US$135 million Emergency Road Rehabilitation Project will facilitate reconstruction, promote trade and economic integration, and benefit road users throughout the country. The project will also create substantial local employment.

“The project is designed to address urgent transport bottlenecks,” noted Mohammed Feghoul, the World Bank Project Task Team Leader. “At the same time,” he added, “the project will establish a road asset management system to ensure proper maintenance and sustainability of road networks in the medium and long term.”

In central and southern Iraq, the project will rehabilitate about 300 km of highways, reconstruct some 150 km of village access roads, and replace about three floating bridges with permanent structures. In northern Iraq, the project will rehabilitate the main road from Erbil to Altun Kopri (38.5 km) and reconstruct around 75 km of village access roads.

The project will be implemented by the State Commission for Roads and Bridges within the Ministry of Construction and Housing in Baghdad, and the General Directorate for Roads and Bridges of the Kurdistan Regional Government in Erbil.

“Bank-financed projects are implemented by Iraq’s own institutions, which contract construction companies using competitive procurement procedures,” commented Joseph Saba, the Country Director for Iraq. “Projects are designed to help establish more efficient and transparent systems for delivering public services in key sectors, such as transport,” he added.

The US$135 million credit will be provided by the International Development Association (IDA), an arm of the World Bank that provides financing on concessional terms to eligible countries. The credit has 35 years maturity including 10 years grace period.

The Emergency Road Rehabilitation Project is the second IDA-financed project approved for Iraq and the first project to support the transport sector. The World Bank’s Executive Directors approved a first IDA credit to Iraq, a U$100 million Third Emergency Education Project, in November 2005.

The lending falls under the World Bank Group’s Second Interim Strategy Note, which provides a framework for up to US$500 million in IDA financing and additional resources from the World Bank Iraq Trust Fund (ITF). The ITF has financed twelve projects amounting to nearly US$400 million to improve education, health, irrigation and drainage, telecommunications, urban infrastructure, and water supply and sanitation.