INTERNA~T10NAL BANK FOR
•   RECONSTRUCTION AND DEVELOPMENT
    1818 H STREET, N.W .. WASHINGTON    D. C. 20433   TELEPHONE: EXECUTIVE 3-6360



          Bank News Release No. 75/48                                  June 5,. 1975



             WORLD BANK LENDS $~2 MILLION TO BOLIVIA FOR A SECOND RAILWAY PROJEQ~


                  The World Bank has approved a $32 million loan to help finance a Second

          Railway Project in Bolivia.

                  The project, with an estimated total cost of $41 million, aims at the

          technical and financial reha.bili tation of the National Railweys Ent,erprisc

          of Bolivia (ENFE), and the development of the railway system in such a wa:y

          that it can efficiently meet the future transport needs of the econolllf.

                  The project consists of priority investments scheduled for implementation



•         during the first two years of ENFE 's investment and rehabilitation program.

          The major expenditures in the project will be for rehabilitating track,

          building related civil works, procuring and installing telecommunications

          equipment and purchasing rolling stock and motive power.           It also includes

          expenditures for workshops, rehabilitation of equipment and technical assistance.

                  The loan, ma.de to ENFE with the guarantee of Bolivia, is for a term of 25

          years, including 5 years of grace, with interest at 8-1/2% per annu..m.



          Note:    Money figures are expressed in US dollar equivalents •




•
                           T E CHNI CAL         D A T A




PROJECT:

COUNTRY:
                           Second Railway Project

                           Bolivia
                                                                                          •
TOTAL COST:                $41 million

BANK FINANCING:            $32 million, for a term of 25 years, including 5 years
                           of grace, with interest at 8-1/2% per annum.

OTHER FINANCING:           Bolivian Gov~rrunent and ENFE

IMPLEMENTING ORGANIZATION: Empresa Nacional de Ferrocarriles (ENFE)
                           (National Railway Enterprise of Bolivia)
                           Casilla 428, La Paz~ Bolivia


PROJECT DESCRIPTION:       The project consists of priority investments scheduled
                           for implementation during the first two years of ENFE's
1975-1979 investment and rehabilitation program. The project's objectives are to
technically and financially rehabilitate .ENFE and to develop the railway system in
such a way that it can efficiently meet the future transport needs of the economy.
The major expenditures in the project will be for rehabilitating track, building
related civil works, procuring and installing telecommunications equipment and
purchasing rolling stock and motive power~ It also includes expenditures for              •
workshops, rehabilitation of equipment and technical assistance.

PROCUREMENT:               Most of the contracts to be financed by the loan will be
                            through international competitive bidding. Negotiated
procurement will be permitted for the acquisition of spare parts or equipment that
are compatible with ENFE's existing equipment. A restricted international competitive
bidding will be permitted for the acquisition of six main line diesel locomotives.
This procedure will allow bids to be taken from manufacturers of locomotives now in
ENFE's fleet, or from manufacturers whose locomotives are in current use in neighboring
countries in order to allow the standardization of ENFE 's fleet l•f diesel locomotives
and/or facilitate the interchange of equipment and th~ use of repair facilities in
neighboring countries. A simplified procurement procedure will be permitted for
contracts of less than $100,000.




CONSULTANTS:               SOFRERAIL (France)




ECONOMIC RATE OF RETURN:   24%


ESTIMATED COMPLETION DATE: 1978
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