Bangladesh
Project loan

Sector: Transportation
Project: Greater Barisal Rural Development
Amount: US$10 million
Terms: Interest rate of 1% per annum; 17-year maturity, including a 5-year grace period
Approved: December 1, 1998
Executing agency: Local Government Engineering Department
Cofinanciers: Government of Bangladesh
Loan administrator: OPEC Fund
Total cost: US$14 million

The project aims at improving transportation efficiency and safety on 238 km of feeder and rural roads in Barisal District and three neighboring districts in southern Bangladesh, an area with a population of 5.6 million. The roads selected for upgrading provide vital links between important agricultural areas and some of the rural markets and bazaars which have been identified as "growth centers" by Government planners. Most of these roads are located on raised earthen embankments built years ago with vast amounts of human labor. At the time they were constructed, few resources were available for paving, compacting the earth mechanically or building proper drainage structures, culverts and bridges. Furthermore, because of Bangladesh's geographical, topographical and climate constraints (annual flooding and frequent typhoons), many gaps in the embankments exist that can only be spanned by boat.

In addition to rehabilitating the roads and embankments, and constructing bridges and drainage structures where practical, the project will upgrade 27 "growth center" markets and construct improved facilities at 20 riverbank "ghats" or jetties to facilitate safe loading and unloading of passengers and goods. The market-places are to be paved and provided with all the facilities needed to ensure a hygienic and efficient trading environment, including proper drainage, internal roads and foot paths, office space, covered selling sheds and stalls, livestock slaughtering facilities, tube-wells and sanitary facilities.

Cambodia
Project loan

Sector: Transportation
Project: Primary Roads Restoration
Amount: US$6 million
Terms: Interest rate of 1% per annum; 17-year maturity, including a 5-year grace period
Approved: December 1, 1998
Executing agency: Ministry of Transport and Public Works
Cofinanciers: AsDB, AusAid and Government of Cambodia
Loan administrator: AsDB
Total cost: US$92.4 million

The Government of Cambodia regards the rehabilitation and reconstruction of the country's war-ruined transport infrastructure as essential for development and accelerated economic growth. Although road rehabilitation efforts began in 1992, travel on most stretches is still slow and dangerous. Most of the roads have not been upgraded since they were constructed 50-60 years ago. Only 2,700 km of the country's 34,000 km of roads can be classified as "all-weather". The rest are unpaved, pot-holed, eroded and impassable during the rainy season. At the provincial level, roads are in such poor condition that they cannot be used by any motorized vehicles except motorcycles. Virtually no secondary road network exists.

Under this project, nearly 600 km of severely deteriorated sections on national roads NR5, NR6 and NR7 will be rehabilitated and restored to a standard appropriate for two-lane rural roads. Shoulders will be constructed to help reduce long-term maintenance costs and to provide safe areas for animal-drawn and non-motorized traffic. High priority bridges will be repaired or replaced as required. Furthermore, about 230 km of provincial roads, evenly distributed throughout the country, will be repaired and improved using low-cost, labor intensive methods. Some 260 km of the NR5, extending from Pursat to Battambang, a 112 km stretch of the NR6, running from Kompong Thmar to the border of Siem Reap province, and a 217 km stretch of NR7 from Tonle But on the eastern bank of the Mekong River to Kratie city will be repaired and resurfaced with bitumen paving.

Moving a load of tires. When motor vehicles are impractical and labor is cheap, handcarts and other human-powered transport methods prevail.

India
Project loan

Sector: Education
Project: Tripura School Education
Amount: US$10 million
Terms: Interest rate of 1% per annum; 17-year maturity, including a 5-year grace period
Approved: December 1, 1998
Executing agency: The Department of Education of Tripura State
Cofinancier: Government of India
Loan administrator: OPEC Fund
Total cost: US$12 million

The project aims at improving school enrollments and literacy rates in Tripura State, an economically under-developed agrarian region, bounded on three sides by Bangladesh and thereby physically separated from the rest of India. The project plans call for upgrading and expanding the educational facilities through the construction, furnishing and equipping of 270 upper primary and secondary schools. In all, 2,160 classrooms will be built to accommodate 87,300 pupils in two shifts. The new schools will be brick and concrete block structures and will, in many cases, replace schools built of less durable, locally available materials that disintegrate quickly under the area's torrential monsoon rains. Furthermore, all the schools will be provided with safe water and sanitary facilities, and fencing. Eighty-two of the new schools will be built in remote areas, while the rest are slated for semi-urban areas.

Although the teacher-pupil ratio in Tripura is relatively favorable, over 70% of the teachers lack adequate professional training, and there are too few female teachers. The project seeks to improve the quality of teaching by offering training courses for around 30,000 teachers and providing textbooks and other learning materials for 87,000 pupils. Faculties at the District Institutes of Education and Training and the State Council of Educational Research and Training will be strengthened to enhance their capacity to provide pedagogical training and revise the curricula.

Over 2,000 classrooms will be built in India's Tripura State, where the Government is working to raise school enrollments and literacy rates.

Kyrgyzstan
Project loan

Sector: Multi-sectoral
Project: Social Services Delivery
Amount: US$3.58 million
Terms: Interest rate of 1.5% per annum; 17-year maturity, including a 5-year grace period
Approved: September 22, 1998
Executing agency: Ministry of Finance
Cofinanciers: AsDB and Government of Kyrgyzstan
Loan administrator: AsDB
Total cost: US$17.93 million

The loan will help strengthen the delivery of rural health and education services in the southern provinces of Osh and Jalal-Abad. Focusing on the renovation of schools, health centers, clinics and hospitals, the project aims to counteract the negative effects of an economic adjustment program which has imposed severe restrictions on social sector investment. Since independence in 1991, and as a direct result of the economic reforms, the Kyrgyz Republic has experienced a dramatic increase in poverty levels and a severe deterioration in social infrastructure, particularly in rural areas. Around 1,000 schools have been closed because of declining enrollment rates, and health indicators are worsening, partly as a result of the deterioration of facilities and services, and partly because economic hardship has made the population more susceptible to disease.

The primary aim of the project is, therefore, to improve the quality of education and health services in rural areas by rehabilitating physical infrastructure, by strengthening the management capacity of local governments, and by encouraging greater participation from beneficiary communities to ensure the sustainable operation of the renovated facilities. The project plans call for reconstructing and renovating 187 schools and 495 health care units (midwife stations, clinics and hospitals); offering training courses to upgrade the skills of service providers; and introducing management information systems in each province. In all, 1.4 million people are expected to benefit directly from the project.

The agreement for the Fund's first loan to Kyrgyzstan was signed by H.E. Ambassador Kamil Baialinov (foreground) and Governing Board Chairman H.E. Dr. Saleh A. Al-Omair.

Laos
Project loan

Sector: Transportation
Project: Xieng Khouang Road Improvement
Amount: US$4.42 million
Terms: Interest rate of 1% per annum; 17-year maturity, including a 5-year grace period
Approved: March 17, 1998
Executing agency: Ministry of Communication, Transport, Post and Construction
Cofinanciers: AsDB and the governments of Japan and Laos
Loan administrator: AsDB
Total cost: US$62.5 million

Xieng Khouang province is blessed with abundant natural resources and an able workforce, but its isolation and poor transportation infrastructure hinder the development of its agricultural potential. Access to many areas is possible only with four-wheel drive vehicles during the dry season. This project aims therefore at improving links both within the province and with the rest of the country to foster social and economic integration.

The loan will help finance improvements to National Road NR7, the last section of the core national road network to be upgraded under a country-wide road maintenance and rehabilitation program. The entire length of the NR7, extending for 267 km from Phou Khoune in the west to Nam Khan on the border with Vietnam, will be reconstructed or upgraded to all-weather standard, and a number of bridges will be repaired or replaced. In addition, 100 km of feeder roads will be rehabilitated, and a 31-km stretch of the NR1 will be upgraded. The improved transportation links will enable area farmers to market their products more easily and provide them and their families with better access to social services.

Road maintenance in Laos was delayed by decades of armed conflict. Many roads are passable only during the dry season with four-wheel-drive vehicles.

Maldives, The
Project loan

Sector: Transportation
Project: Malé International Airport Upgrading Project (Phase IV)
Amount: US$1.5 million
Terms: Interest rate of 1.75% per annum; 17-year maturity, including a 5-year grace period
Approved: September 22, 1998
Executing agency: Maldives Airport Authority
Cofinanciers: Saudi Fund, Kuwait Fund and Government of the Maldives
Loan administrator: OPEC Fund
Total cost: US$19.59 million

Tourism in the Maldives has tripled since the early 1980's and is now the country's main engine of economic growth. Malé International Airport, built in 1965, is struggling to cope with ever growing numbers of tourists. Major improvements are essential if operating requirements are to be met and facilities brought into line with projected traffic levels. This loan will help finance the changes needed. Under the project, the international terminal will be expanded, a terminal for domestic passengers will be built, and a new power supply and distribution system will be installed. An air traffic service center, equipped with satellite-based communication, navigation and surveillance systems, will also be constructed. Outdated air traffic control facilities will be replaced with state-of-the-art equipment offering enhanced operational capacity at reduced maintenance costs. To ensure correct use and upkeep of the new equipment, special training for the air traffic controllers and the maintenance and administrative staff will be provided. Besides encouraging the continued development of the tourist sector, the project will foster the cost-effective movement of passengers and cargo, and help promote exports and other foreign income earning activities.

The Maldives will expand Malé International Airport to keep pace with tourism to the islands, which has tripled since the early 1980s.

Palestine
Project loan

Sector: Multi-sectoral
Project: Second Community Development
Amount: US$8 million
Terms: Interest rate of 1% per annum; 17-year maturity, including a 5-year grace period
Approved: December 1, 1998
Executing agency: The Palestinian Economic Council for Development and Reconstruction
Cofinanciers: IDA, Palestinian Authority and others
Loan administrator: IDA
Total cost: US$23.9 million

This loan will cofinance the second phase of a community development project which seeks to rehabilitate and develop basic social, economic and environmental infrastructure in the West Bank and Gaza Strip, especially in poor communities that have not benefited from previous projects. In all, some 150 micro-projects, ranging from $20,000 to $50,000 in cost, will be implemented. The social micro-projects include the rehabilitation or reconstruction of health clinics, schools, community or youth centers, orphanages, homes for the elderly, public hygiene facilities, libraries and religious, historical or cultural buildings and areas. Among the economic infrastructure projects are those aimed at repairing or reconstructing water networks and supply lines, access roads (including bridges, culverts and drainage structures) and electric power supply and distribution lines. The environment oriented micro-projects will not only rehabilitate or expand sewage and drainage networks and solid waste disposal facilities, but also plant trees, build terraces and beautify public areas.

The micro-projects will be selected on the basis of locally identified needs and must be supported by a community contribution equal to 10-15% of the total cost. Furthermore, the community must have the capacity to operate and maintain the proposed project upon its completion. Goods and services will be provided primarily by local suppliers and contractors, thus stimulating demand and increasing temporary job opportunities for unskilled and semi-skilled workers. All in all, the micro-projects will help Palestine reduce its dependence on goods and services from Israel; develop good governance, and utilize its existing social resources to deliver basic public services.

Repairing water lines. Palestine is implementing a host of small projects to rehabilitate vital public services in under-served poor communities.

Philippines, The
Project loan

Sector: Multi-sectoral
Project: Special Zone of Peace and Development (SZOPAD) Social Fund
Amount: US$10 million
Terms: Interest rate of 1.75% per annum; 17-year maturity, including a 5-year grace period
Approved: June 18, 1998
Executing agency: SZOPAD Social Fund
Cofinanciers: IBRD, the Government of the Philippines and beneficiaries
Loan administrator: IBRD
Total cost: US$25.75 million

The loan is to help support the development activities of the SZOPAD Social Fund. Established in 1997 to address the reconstruction needs of the conflict-torn southern regions, SZOPAD is mandated to deliver rapid and effective financing to hasten the rehabilitation of social and economic infrastructure within the Zone. This is to be achieved through the implementation of small-scale sub-projects designed to restore basic services and facilities, boost productivity and create employment opportunities.

With an estimated population of 10 million, the SZOPAD regions are endowed with large tracts of fertile land with considerable potential for agricultural development. Years of turmoil, however, have led to declining productivity, largely as a result of the degradation of rural infrastructure. Access roads are in poor condition, only a small percentage of the land is irrigated, and there are few facilities for the storage and marketing of produce. Clean water, safe sanitation facilities, primary health care, and other social services are in short supply. SZOPAD seeks to correct this situation by implementing demand-driven, small-scale sub-projects which focus on providing essential infrastructure and services, including rural roads, irrigation, water supply and sanitation systems, clinics and schools. In this way, the project will contribute towards reconstructing villages, resettling displaced persons, strengthening communities, and helping lay the foundation for self-sustaining growth.

In the Philippines, dozens of small projects will help the conflict-torn southern region rebuild and restore its social services, including clinics and schools.

Vietnam
Project loan

Sector: National Development Banks
Project: Line of Credit to the Vietnam Bank for the Poor (VBP)
Amount: US$10 million
Terms: Interest rate of 1% per annum; 17-year maturity, including a 5-year grace period
Approved: September 22, 1998
Executing agency: VBP
Cofinanciers: VBP and beneficiaries
Loan administrator: OPEC Fund
Total cost: US$13 million

The line of credit will help expand the activities of the VBP, a state-owned institution established to help implement the Government's ongoing Poverty Alleviation Program by providing financial services to the rural poor. Around 90% of the country's poor live in rural areas not generally served by the formal financial sector. With little or no access to credit facilities, most of the rural population lacks any opportunity to participate in income-generating activities, a situation that tends to perpetuate poverty. VBP is working to establish savings and credit schemes in provincial communities, paving the way for individuals and groups to secure the financial backing necessary to launch small-scale enterprises. Since its inception in 1995, VBP has implemented a number of credit programs and now requires additional resources to widen the scope of its operations. This project will be undertaken in 18 provinces in northern and central Vietnam. During the first four years, over 3,000 savings and credit groups will be formed, each with around 25 members. Each member will be obliged to participate in a compulsory savings plan and will be eligible for small loans averaging $100. The loans can be used to finance income-generating activities such as crop and livestock production, fish farming, agro-processing businesses, services and input supplies. Through such ventures, an estimated 76,000 poor, rural households will secure the means to improve their livelihoods and incomes. The concomitant generation of economic activity is expected to contribute significantly towards overall development.

Savings groups in Vietnam will lend to the rural poor, whose lack of access to formal credit hinders their participation in income-producing activities and tends to perpetuate their poverty.