Press Release

Transportation sector in Madagascar receives boost with
US$7 million loan from OPEC Fund

138/2005 December 21, Vienna, Austria
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The OPEC Fund for International Development today signed a US$7 million loan agreement with the Republic of Madagascar to rehabilitate sections of the national roads RN34 and RN35. On completion, the scheme is expected to relieve the isolation of inhabitants of the Toliara province, directly benefiting at least 750,000 people from improved access to marketplaces, social services and jobs.

Only around 11% of Madagascar’s road network is paved, with the rest classified as being in poor condition. This situation places considerable constraints on the agricultural sector, as the transport of produce and inputs is slow and expensive. The Toliara province, populated by some 2.5 million inhabitants, is one of Madagascar’s most impoverished areas. Farming comprises the primary income-generating activity, but few have access to all-weather roads, thus necessitating a 34 hour-long journey to simply reach an urban center.

The project will help reduce travel limitations by rebuilding parts of the badly deteriorated RN34 and RN35, two important national roads which provide Toliara with main links to the province of Antananarivo and the southwest of the country. A total 161 km of roads will be reconstructed/upgraded, and three provisional bridges on the Morondava River will be replaced with permanent structures. Other works will include installation of drainage systems, signaling devices and environmental protection structures, as well as the building of rest stops at village river crossings.

Madagascar has received, including the present loan, OPEC Fund financing totaling more than US$130 million. This amount includes financing for balance of payments support and projects in the energy, health, transportation, agriculture and education sectors. The country has also benefited from two technical assistance grants in the areas of agriculture and energy.

Today’s agreement was signed in Vienna by HE Mr. Benjamin Andriamparany Radavidson, Minister of Economy, Finance and Budget of the Republic of Madagascar, and by HE Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.