Transport and Infrastructure Project

closed

The objectives of the project are to: (a) promote the international competitiveness of Cape Verde through port modernization, reorganization of the shipping industry, and development of offshore information industries like teleports; (b) foster national economic integration by streamlining sector investment planning and achieving a more balanced and cost effective allocation of resources; (c) prevent further erosion of the capital stock in the road network by setting up a road maintenance organization; (d) support promotion of the local contracting industry through execution of a four-year road maintenance program; and (e) promote economic growth and alleviate poverty in Fogo Island through rehabilitation of its only port. Using a sector lending approach, the project has four components: (i) port sector investments, including modernization at Porto Grande in the Island of Sao Vicente, and port rehabilitation at Vale De Cavaleiros in the Island of Fogo; (ii) reorganization of shipping under an action plan to redesign the institutional framework, and provide the right incentives to private shipowners; (iii) highway sector improvement through execution, mainly by private contractors, of a time slice of the investment and maintenance program (1993-1996); and (iv) establishment of an institutional framework to develop satellite earth station teleports by private investors.