According to a World Bank press release received by AIM on Friday, the Bank's Board of Directors approved the credit, from the Bank's soft loan arm, the International Development Association (IDA), on Tuesday.
The Bank describes the roads project as "part of a ten-year programme designed to help stimulate growth and contribute to poverty reduction through improved road infrastructure, better sector policies and enhanced road sector management".
The objective, it continues, is to improve access to all-season roads through maintenance, rehabilitation and upgrading of the classified road network.
The release cites the Task Team Leader for the project.
Dieter Schelling, as saying "Improved road transportation will help stimulate the development of markets, generate growth and reduce poverty by lowering transportation costs. It will also help in placing the country in its critical and strategic role as the transport provider for neighboring landlocked countries, while opening external markets for trade".
The release says the loan is on standard IDA terms. These are a "commitment fee", of 0.35 percent, a service charge of 0.75 percent, and a repayment period of 40 years, which includes a 10 year grace period.
Also on Tuesday, the World Bank Board approved the "Western Indian Ocean Marine Highway and Coastal Contamination Prevention" programme, which is intended to protect marine and coastal resources in the western Indian Ocean.
The Bank says this programme will focus on Mozambique, Kenya, Tanzania and South Africa "to reduce risks of environmental damage to beaches, fishing grounds and other domestic resources from oil or chemical spills".
The programme, the Bank claims, "will prevent ship-based environmental contamination, such as oil spills from groundings and illegal discharges of ballast and bilge waters, and strengthen the capacity of countries to respond to oil or chemical spill emergencies in the region".
The programme will be financed by a grant of 11 million dollars from the Global Environment Facility (GEF). The World Bank is one of the GEF's implementing agencies.
SOURCE: AIM
