ROAD MAINTENANCE EQUIPMENT LOAN

SPECIFIC PURPOSE OF LOAN IS TO FINANCE PROCUREMENT OF ROAD MAINTENANCE EQUIPMENT AND EQUIPMENT-RELATED SERVICES IN ORDER TO ASSIST MPW BECOME INSTITUTIONALLY AND PHYSICALLY CAPABLE OF MAINTAINING LIBERIA"S ROAD SYSTEM IN AN ACCEPTABLE MANNER. PROPOSED LOAN IS A FOLLOW-UP OF 1973 LOAN 020. BOTH LOANS ASSIST MPW EFFORTS TO SHIFT ITS PRIORITIES FROM ROAD CONSTRUCTION TO ROAD MAINTENANCE OPERATIONS. PROPOSED LOAN WILL FINANCE PURCHASE AND SHIPMENT OF ROAD MAINTENANCE EQUIPMENT, VEHICLES, AND SPARE PARTS AS REQUIRED BY MPW, INCLUDING EQUIPMENT PROPOSED UNDER LOAN 020 AND NOT YET PURCHASED. IT WILL BE PROPOSED IN A SEPARATE MEMORANDUM THAT UNEXPENDED LOAN 020 FUNDS BE USED TO REPAIR MPW-OWNED US-MANUFACTURED EQUIPMENT NOW ON HAND IN LIBERIA. FINALLY, LOAN FUNDS WILL FINANCE PROCUREMENT-RELATED SERVICES SUCH AS PREPARING FINAL DETAILED SPECIFICATIONS AND IFB DOCUMENTS, BID ANALYSES, NEGOTIATIONS AND RECOMMENDATIONS, PHYSICAL INSPECTION OF ITEMS PRIOR TO SHIPMENT TO LIBERIA, SERVICES OF AN EQUIPMENT SPECIALIST TO ASSIST WITH PROCUREMENT IMPLEMENTATION PLANNING. THESE SERVICES WILL BE PROVIDED, AS UNDER LOAN 020, BY MPW CONTRACT WITH THE AFRICAN AMERICAN PURCHASING CENTER (AAPC). EQUIPMENT PURCHASED WITH LOAN FUNDS WILL ENABLE MPW TO MAINTAIN 90% OF ITS ROAD NETWORK IN AN ACCEPTABLE MANNER. SINCE 75% OF THIS NETWORK CONSISTS OF SECONDARY AND RURAL TYPE ROADS, THE ENHANCEMENT OF MPW"S MAINTENANCE CAPABILITY WILL BENEFIT LIBERIA"S RURAL DEVELOPMENT EFFORTS. LOAN WILL FUND 1 OF 6 TARGETS OF THE FYRMAD PROGRAM. IBRD/IDA/UNDP WILL FUND THE REORGANIZATION OF MPW AND THE INSTALLATION OF AN EFFECTIVE MANAGEMENT SYSTEM; EQUIPMENT AND STAFF OF EQUIPMENT MAINTENANCE WORKSHOPS; A PUBLIC WORKS EXPERT TO COORDINATE THE ENTIRE FYRMAD PROGRAM. THE FEDERAL REPUBLIC OF GERMANY WILL FUND A TRAINING PROGRAM FOR MPW STAFF.