INTERNATIONAL DEv7MOPNENT ASSOCIATION
REPORT AND RECOTIMENDATION OF THE PRESIDENT
TO THE EXECUTIVE DIRECTORS ON A
DEVELOPi=NT CREDIT FOR A ROAD PROJECT
TO THE V1ALAGASY REPUBLIC
1. I submit the following report and recommendation on a proposed
credit, in an amount in various currencies equivalent to $10 million to
the Malagasy Republic, to assist in financing a road project.
PART I - HISTORICAL
2. The proposed credit would be the first IDA operation in the
Malagasy Republic. The country became independent in June 1960 and
joined the Bank and IDA in September 1963.
3. In July 1964 the Malagasy government asked the Association to
consider financing the reconstruction of two sections of the TananariveHlajunga
road. A preliminary appraisal in January-February 1965 indicated
good possibilities for a sound project. The government then undertook
to complete the final engineering studies to provide the more
reliable cost estimate on which the appraisal report is based. Negotiations
for the proposed credit were completed in Nlashington on April 22,
1966. The government was represented by a delegation headed by the
Planning Comissioner. On June 2L, 1966 a law was passed authorizing the
government to borrow from the Association the proposed amount.
4. A $4.1 million Bank loan for an education project is also under
consideration. Negotiations will start when the government has acquired
most of the land required for the project.
PART II - DESCRIPTION OF THE PROPOSED CREDIT