Liberia - Second Highway Project

FILE COPY DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Report No. 103a-LBR APPRAISAL OF A SECOND HIGHWAY PROJECT LIBERIA May 7, 1973 Western Africa Projects Department Transportation Division Th|i report was prepued for official use only by the Bank Group. It may not be pubisrhed, quotod or cited without Bank Group authorization. The Bank Group does not accept responsibgtty for the wcucy or completenoss of the report.  Currency Eq4uivalents US$1.00 - idb$1.00 Fiscal Year January 1 - Decenber 31 System of Weights and Measuress British/US British/US Metric 1 foot (ft) 0.305 meter (ma) 1 mile (mi) = 1.61 kilometera (Oa) 2 1 square mile (sq mi) = 2.59 aquare kilometers (km ) 1 ton (long ton) = 1.016 metric tons (ma tons) Abbreviations and Acronyms ADB - African Development Bank MW - Ministry of Public Wbrks and Utilities NPA - National Port Authority SAUTI - Sauti Overseas (conaultants, Italy) UNDP - United Nations Development Programe USAID - United States Agency for International Development vpd - vehicles per day  LIBERIA APPRAISAL OF A SECOND HIGHWAY PROJECT TABLE OF CONTENTS Page No. SUMMARY.................................. ii 1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . 1 2. THIE TRANSPORT SECTOR................ 2 A. Economic Setting .............. .. 2 B. The Transport System . .. . ... . .. .. .... 2 C. Transport Planning, Policy, and Coordination . . . . 3 3. HIGHWAYS . . . . . . . . . . . . . . . . . . . . . . . . 4 A. The Network . . . . ,, . . . . . . . . . . . . . . . 4 B. Characteristics and Growth of Road Traffic . . . . . 4 C. Administration . . . . . . . a . . . *. . . . 5 Do Planning and Financiig . . ... . .. ..... 6 E. Engineering and Consl:ruction . . . . . . . . . . . . 7 F. Maintenance o o o * a . . . . a . 8 4. THE PROJECT . . . . . . . . . . . . . . . . . . . 8 A. Description . . . . . . e . v . . v . . . * . . . . 8 - Technical Assistance to MPW . . . . . . . . . . . 10 - Purchase of Highway Maintenance Equipment and Spare Parts , . . . . . . . .... . .. . 11 - Construction of Workshop Facilities a . . . . . . 11 - Upgrading of the Monrovia Bypass . . . . . . . . * 11 - Feasibility Studies and Detailed Engineering . . . 12 B. Cost Estimates . . . . . . * ..... . . a. . . . . 12 Co Execution . . o . . . . . . . . . . . . . . . . 14 D. Financing and Disbursements . . . . . . . . . . . 15 5. ECONOMIC EVALUATION ... . ... . . . . . . . .. 16 A* General . . . . . . . . . . . . . . . . . . 16 B. Highway Maintenance Program . . . . . . . . . . . . 16 C. Upgrading of Monrovia Bypass . . . . . . . . . 17 D. Other Project Elements o .. . . . . . . .... . . 18 6. AGREEMENTS REACHED AND REiCOMMENDATION . . . . . . . . . . 18 This report was prepared by Meissrs. C. Delapierre (Engineer/Economist, PMWA), and P. Gyamfi (Economist). Th,e project was appraised in October/November 1972.  TABLE OF CONTENTS (Cont'd) T_BLES 1. Five-Year Highway Maintenance and Development Program 2. Development of the Highway Network .3. Vehicle Registration and Gasoline Consumption, 1961-70 4. MPW Bureau of Operations - Personnel 5. MPW Bureau of Operations - Highway Maintenance Budget 6. Technical Assistance Requirements 7. Equipment Needs for Proposed Highway Maintenance Program 8. Cost Estimates by Project Item 9. Estimated Expenditures over the Project Period 10. Estimated Schedule of Disbursements ANNEX Summary of Economic Analysis of Project CHART Proposed Organization of the Ministry of Public Works and Utilities - World Bank 7358R Highway Network - IBRD 10292R City of Monrovia - IBRD 10291R  LIBERIA APPRAISAL OF A SECOND HIGHWAY PROJECT SUMMARY i. The transport system of Liberia consists of about 4,200 mi of roads, 300 mi of privately-owned railways, four seaports, and five airports. Almost all the traffic carried by the railways consists of the country's production of iron ore, its main export; roads are the principal mode used for internal transport. While there has been a determined effort over the past 20 years to develop the road network, it still remains small for a country of Liberia's size and pc,pulation. The Government's development strategy accords high priority to roads. ii. Previous Bank Group lending in the transport sector has totalled about US$7.9 million which helped finance one project for road construction and the purchase of maintenance equipment, and another for dredging the port of Monrovia. iii. The proposed Second Highway Project is a component of the Govern- ment's Five-Year Highway Mainten,ance and Development Program which is based on recent studies, primarily a h,ighway organization and maintenance study financed by the United Nations Development Programme (UNDP) for which the Bank acted as Executing Agency, and a Bank-financed feasibility study of the Monrovia Port access roads. The project provides for: (a) technical assist- ance to coordinate the various project activities of the five-year program; (b) technical assistance for reorganization and improvement of highway main- tenance operations, training of maintenance personnel, and a study of the local road construction industry; (c) purchase of maintenance equipment and spare parts; (d) construction of and equipment for maintenance workshop facilities; (e) upgrading the Monrovia Bypass; and (f) feasibility studies and detailed engineering. The total cost of the project is estimated at US$14.1 million, which will be met jointly by the Bank/IDA, the United States Agency for International Development (USAID), the Federal Republic of Germany, UNDP, and the Government of Liberia. Bank/IDA participation is expected to be about US$5.6 million (39% of total project costs). iv. The maintenance element of the project will assist the Ministry of Public Works and Utilities (MPW) in reorganizing and improving road mainten- ance operations. Consulting services for technical assistance and training are provided over a four-year period. These investments are expected to yield an overall economic return above 30%. v. Upgrading the Monrovia Bypass to all-weather two-lane paved road will relieve traffic congestion on the access roads to the port, and will considerably improve traffic conditions in and around Monrovia. This Bypass is presently a two-lane laterite surface road which has deteriorated so much that it is almost impassable during the rainy season. Upgrading the road to paved standard is expected to yield an economic return of about 42%.  - ii - vi. The project is suitable for Bank/IDA lending to the Governnment of Libetia in a total amount of US$5.6 million,- conslsting of a Loan of US$3.0 million and a Credit of US$2.6 million. An appropriate Loa* term would be 25 years with a 5-year period of grace. The Credit would be made on the usual terms.  LIBERIA APPRAISAL OF A SECOND HIGHWAY PROJECT 1. INTRODUCTION 1.01 In connection with its overall review of Liberia's development problems and potential, the new administration which took office in January 1972 is emphasizing improved transport as a vital component in future develop- ment strategy. Already, a five-year program for highway maintenance and development has been prepared (para. 4.02 and Table 1). The program is based primarily on two recent investigations: (i) a study on highway organization and maintenance, financed by UNDP with the Bank acting as Executing Agency, carried out by the consultants SAUTI (Italy) in 1971; and (ii) a feasibility study of the Monrovia Port acciess roads conducted by Stanley Consultants (US) and financed under a Bank Loan for a port project (617-LBR, US$3.6 million, 1969). In October 1972, the GDvernment convened a highway aid coordination meeting, the main purpose of wlhich was: (a) to brief potential donors on the five-year program and its financing requirements (about US$40 million), and (b) to seek commitments or indications of interest in financing it. 1.02 The proposed Second lHighway Project is a component of the above- mentioned five-year program, aind will include: (a) reorganization and im- provement of highway maintenan,ce operations over a four-year period; (b) up- grading the Monrovia Bypass 1/; and (c) feasibility studies and detailed engineering. The total cost of the project is estimated at about US$14.1 million, with a foreign exchange cost of about US$11.9 million. Project costs will be met jointly by the Bank/IDA (about 39%), USAID (about 30%), the Federal Republic of Germany (about 13%), UNDP (about 1%), and the Government (about 17%). The Bank/IDA share, to be met by a Bank Loan of US$3.0 million and an IDA Credit of US$2.6 million, will be used exclusively for foreign exchange expenditures. 1.03 The proposed project will be the third Bank Group operation in the transport sector of Liberia. A first highway project (Loan 368-LBR, US$3.25 million, 1964) consisted of construction of about 62 mi of new roads and paving of about 27 mi of these (see Map IBRD 10292R), as well as the procure- ment of road maintenance equipiment, spare parts, and workshop facilities. For the construction element of the project, the engineering carried out by the Department of Public Works and Utilities was inadequate; extensive re-designing was necessary which involved substantially increased quantities of work, and the extension of the Closing Date of the Loan by two years. These changes resulted in a request by the Government for a supplementary loan of US$1 million which was approved in 1965 (Loan 368-LBR amended). Al- though some failures have occurred during exceptionally heavy rainy seasons, the eventual quality of the work was generally adequate. About US$860,000 was spent on maintenance equipment and vehicles which were put into service in 1965. The entire project was completed and the Loan fully disbursed by the last revised Closing Date of June 30, 1969. 1/ The two-lane laterite-surfaced highway which bypasses the capital city of Monrovia.  i1.04 A second Bank Loan for transport (617-LBR, US$3.6 million, 1969) helped finance a project for dredging the Port of Monrovia and providing man- agement assistance to the Port Administration and the National Port Authority. This project was executed and completed satisfactorily. The Government has proposed that remaining funds (about US$330,000) be used to carry out a com- prehensive port development study (para. 2.07). 1.05 This report is based on the studies mentioned above (para. 1.01), and on the findings of a mission comprising Messrs. C.R. Delapierre (Engineer/ Economist, IBRD Permanent Mission in Western Africa) and P. Gyamfi (Economist) which visited Liberia in October/November 1972. 2. THE TRANSPORT SECTOR A. Economic Setting 2.01 The terrain in Liberia is generally flat, and presents no major topographic obstacles to transport. However, dense forests in the interior of the country, swampy areas on the coast, and the absence of good road-making sotils, make road construction in those parts expensive. 2.02 Total population in 1970 was 1.5 million, of which almost 75% was in rural areas, and about 150,000 - 200,000 in Monrovia, the capital. Per capital Gross Domestic Product in 1971 was about US$250, which is high compared with most African countries. However, the economy suffers from a dichotomy between a prosperous enclave sector and an underdeveloped subsistence sector. The Government's past economic policy has encouraged large-scale (mostly foreign) private investments in iron-mining and in rubber; but apart from the actual mining operations, these investments produce few jobs for Liberians and, since the products are processed abroad, stimulate only a few industries. Recent Government objectives to develop agriculture and to reduce migration to Monrovia by promoting rural development would be considerably hampered if presently in- adequate transport facilities were not improved. B. The Transport System 2.03 Liberia's transport system consists of about 4,200 mi of roads, 300 mi of privately-owned railways, four seaports, and five airports of which two provide international services. For internal transport, the country depends almost entirely on roads, and the Government has accorded high priority to upgrading the network. 2.04 Railways are all privately owned by the mining companies, and haul primarily iron ore (about 20 million tons in 1971). The only exception is the Mount Nimba-Buchanan line (164 mi) which, in addition to ore, also carries annually about 10,000 tons of rubber and 6,000 tons of logs, and about 150 passengers daily. The Government recognizes the need for using railways for commercial traffic to complement the existing road network, and is examining how this could best be achieved.  - 3 - 2.05 The seaports together handle a total of about 22.5 million tons of cargo annually, of which about 90% is iron ore. The Monrovia port is the most ir,mportant, handling about 55% of total traffic; the port of Buchanan ac- counts for about 40%. The minor shallow water ports of Greenville and Cape Palmas handle mostly logs (about 150,000 tons per annum). Coastal shipping is insignificant. 2.06 Responsibility for ownership and operation of ports is vested in the National Port Authority (NPA) which was established in 1967 but is not yet in full effective control. At Monrovia, NPA operates the commercial quays, but iron ore is handled by various concessionary companies at their own berths. Buchanan is largely an iron ore port which is at present wholly managed by a concessionary company. The minor ports are managed by NPA with the assistance of private companies. 2.07 NPA faces technical difficulties in maintaining the smaller ports and in planning their development for the prospective export of timber pro- ducts and possibly of other commodities. Further problems have arisen regard- ing the siting of port facilities, and of road and rail access, to handle the expected development of new, iron ore deposits in Liberia and in neighbor- ing countries which might wish to export through its ports. To help remedy these problems, the Bank has agreed in principle to the Government's using remaining funds under Loan 617-LBR (para. 1.04) for a comprehensive port development study to assist NPA in the orderly development of its ports. C. Transport Planning, Policy, and Coordination 2.08 Priority needs in the transport sector, as identified by recent studies, are as follows: (a) to alleviate growing congestion in and around the Monrovia port, a prime center of economic activity; (b) to upgrade key primary roads, and to improve amd extend secondary and feeder roads into rural areas where the Government's agricultural development activities are or will be centered; and (c) to improve the efficiency of highway maintenance operations. This latter need iLs especially important in view of the deter- ioration of the road system, atnd the inadequacy of the equipment fleet. 2.09 In order to satisfy these needs effectively, transport planning will have to be coordinated. Railways have been privately developed and are operated to serve the enclave sectors (mining and rubber); ports have been administered separately under management contracts, and their devel- opment has been based on their individual financial and operational cap- abilities rather than on the overall economic requirements of the country. The full impact of this had not previously been felt because the transport system was still at the primary stage of its development, and the major thrust had been towards meeting immedLate needs. Now, however, inadequate planning has manifested itself in a lackc of integration between the development of ports and the roads serving their hinterland (the port of Buchanan is a prime example of this), and in difficulties in coordinating the development of transport with related sectors of the economy.  -4- 2.10 Responsibility for transport planning and development is presently not clearly defined, and is shared primarily by the Ministry of Commerce, In- dustry and Transportation, the Ministry of Public Works and Utilities (MPW), and the National Port Authority (NPA). However, the Government is anxious to promote more closely coordinated planning and development in the entire sector, and is considering the possibility of technical assistance to achieve this. 2.11 The proposed project provides for recruitment of a transport plan- ner (paras. 3.10 and 4.05) who would be assigned to MPW and who would assist the Ministry in preparing a comprehensive highway development plan. The eKpert will work closely with NPA and its consultants for the proposed port development study (para. 2.07), and is expected to coordinate his activities w:Lth the Government's overall development planning. The Government has agreed ait negotiations that MPW's highway planning will be synchronized with the country's overall planning activities. 3. HIGHWAYS A. The Network 3.01 Roads have been developed over the past 20 years mainly with tech- nical aid from the U.S. Bureau of Public Roads, financial aid from the U.S. Export-Import Bank (Exim Bank), and suppliers' credits. More recently, USAID, the Federal Republic of Germany, and the Bank have also contributed to devel- opment of the network. The result of these efforts is that whereas in 1950 there were only about 300 mi of unsurfaced roads in poor condition, the net- work today totals about 4,170 mi; of these, almost 2,900 mi are public roads, and the remainder private roads constructed by various concessions, but open to public use. Despite the concentrated development effort, however, the system as a whole remains inadequate; some areas of the country have only poor road connections, and certain other areas are not served at all. (See Map IBRD 10292R). 3.02 The public network is classified into primary, secondary, and farm- to-market roads (Table 2). The primary system comprises about 1,140 mi of all-weather roads which connect important population centers and which carry fairly high traffic volumes. The secondary system consists of about 490 mi of all-weather roads. The farm-to-market roads connect villages and agricul- tural areas with main roads, and are usually no more than about 10 mi long. B. Characteristics and Growth of Road Traffic 3.03 There are little data on traffic flows outside Monrovia. No traffic counting program exists, so that a comparison of available data over a period of several years does not allow meaningful conclusions. Traffic surveys were organized in 1969 by MPW, and in 1971 its consultants (SAUTI) carried out an or'gin/destination survey. Traffic in the Monrovia area was studied in 1967 by MPW, and again in 1971 by Stanley Consultants as part of the feasibility  study of the Monrovia Port access roads. Results indicated relatively high traffic volumes on public roads: 150 mi of these carry more than 1,000 vehi- cles per day (vpd), and 1,100 mi more than 100 vpd; on roads nearer to Monrovia, volumes of between 2,000 and 5,000 vpd were counted. On the basis of a thorough analysis of econonmic trends, SAUTI forecast that traffic on the more important roads can be expected to increase at about 5% annually over the next five years. Consultants to be provided under the proposed project will help MPW establish a traffic counting program. The Government has agreed at negotiations that it will initiLate appropriate traffic counting techniques, and will maintain a permanent organization for collecting and processing traffic data. 3.04 Statistics from the Ministry of Commerce and Transport are un- reliable, and have to be used with caution; they do indicate, however, that the vehicle fleet grew by aboult 11% annually over the past ten years to about 23,000 units in 1970 (Table 3). About 60% of the fleet consists of passenger cars. 3.05 Government policy encourages development of the road transport in- dustry. There are no administrative restrictions on vehicle imports. A truck license is readily obtainable and is the only requirement for entering the transport business; the resulting free competition evidently offers excel- lent opportunity for small trucking firms. Regulations on vehicle weight and dimensions are poorly enforced. Accordingly, during negotiations, the Bank/IDA obtained the Government's assurance that it will strengthen the enforcement of vehicle regulations and provide the staff necessary for this purpose. The Government has already taken the initiative in this respect by establishing the Bureau of Motor Vehicles within the Ministry of Justice, effective from March 1973. C. Administration 3.06 MPW is responsible for the public highway network; its functions are performed through four Bur,eaus, one each for Administrative Services, Technical Services, Operations, and Construction (see Organization Chart). The Bureau of Operations is reisponsible for public properties and for main- taining public roads. MPW alSgD has a Planning Division which reports directly to the Deputy Minister. 3.07 In 1970, MPW employed about 2,100 persons, of whom about 1,800 were assigned to the Bureau of Operations. SAUTI had recommended under the UNDP study (para. 1.01) that about 1,660 well-trained personnel should be made available to carry out the maintenance program (Table 4); except for the engineers, the actual number of personnel are nominally available in MPW, but the majority of these are not trained for their respective positions. The shortage of engineers in the country results primarily from low Government salaries. Aware of this, MPW had recommended as far back as 1969 that salaries be raised in order to attract engineers from the private sector and from abroad. This finally resulted in the salaries of engineers and technicians being raised by 25% in January 1973. The Government is confident that it can now recruit the engineers required for MPW, and has given its assurance that  - 6 - it will formulate a program satisfactory to the Bank/IDA to attract engineers to its civil service in sufficient numbers. 3.08 The proposed reorganization program is also in vital need of me- chanics, operators, and foremen, and about 300 of MPW's Bureau of Operations staff will require additional training. The Government's Technical Institute at Kakata was designed to provide advanced vocational education, and to train technicians; however, the mission which recently appraised an education proj- ect in Liberia does not consider the Institute to be the right training center for MPW. 1/ More effective training for MPW staff could be provided at two pilot maintenance centers financed by a grant from the Federal Republic of Gernmany which have been established at Buchanan and Greenville. These centers have the necessary equipment, and were established to provide on-the-job training for the personnel required to maintain about 290 mi of roads constructed with German financial assistance. Since their establishment in 1971, about 25 persons have been trained at the two centers. To allow training of the 300 MPW employees within the four-year program, and at the request of the Liberian Government, the Federal Republic of Germany has agreed to expand its program at the centers (para. 4.07). D. Planning and Financing 3.09 The Planning Division of MPW is in charge of collecting statistical data and planning highways, but it is understaffed and poorly equipped. High- way investment to date has been decided only on an ad hoc basis, and the new five-year highway maintenance and development program is the first attempt to base important investment decisions on a comprehensive study of the mode. 3.10 To help it function more efficiently, the Planning Division needs to be strengthened. As indicated previously (para. 2.11), a transport planner will help prepare a comprehensive program to develop highways, and will train Liberian counterparts. Once strengthened, the tasks of the Division will be: (i) to collect traffic and inventory data on the entire network; (ii) to ana'Lyze construction and maintenance costs; and (iii) to assess priorities for road construction and improvement in accordance with general development planls. 3.11 Road construction works have been financed largely from foreign loans. A supplier credit of US$23 million was signed in 1962, and the Bank lent US$3.25 million in 1964, supplemented by a loan of US$1.0 million in 1965 (Loan 368-LBR); in 1971, USAID committed US$4.4 million for financing four rural roads. The Federal Republic of Germany has also participated in develop- ment of the highway network. The Exinabank provided some financing for the purchase of road maintenance equipment over the period 1951-63. The results of all these efforts have been satisfactory, but much still remains to be done (para, 3.01). 1/ Report No. PE-39a, March 9, 1972.  - 7 - 3.12 Expenditures for highway administration and maintenance are financed from the general budget. MPW's budget is prepared annually by its Finance Division on the basis of estimates from its four Bureaus (para. 3.06). Except for personnel services, it is not required that every item of expendi- ture be supported by detailed statements. SAUTI has now proposed programming and budgeting techniques which would indicate the purposes of programs requested. Accordingly, budget preparation and cost accounting procedures will be improved under the proposed project following the consultants' recommendations. 3.13 Over the period 1968-72, recurrent expenditures for road maintenance and for MPW salaries increased from US$1.2 million to US$1.9 million, or by about 12% annually (Table 5). The allocation for maintenance operations alone rose by about 7.5% annually to alinost US$1 million, but this is not enough to keep the network in adequate ccondition. During negotiations, the Government provided the assurance that it would increase the funds allocated for road maintenance (para. 4.25). 3.14 There are no reliable data for gasoline consumption and imported vehicles; moreover, the Ministry of Finance states that about half of Liberian imports subject to customs duties are in fact brought in duty-free, primarily because of the many exemptions granted to certain companies. The import duty on all motor vehicles and spare! parts is 28%, and on tires 30%. Duty on gasoline amounts to USJ14 and on diesel oil US411 per gallon. Annual regis- tration taxes range from US$40 for small cars to about US$170 for trucks. 3.15 Total revenues from road user charges cannot be calculated accurately for lack of data, but SAUTI has estimated the amount collected at a minimum of US$1.5 million in 1968, and at US$2.5 million in 1970. These figures indicate that revenues more than cover recurrent highway expenditures; however, more refined statistics should be provided. The Planning Division of MPW, appro- priately strengthened with a transport planner (para. 3.10), will make a study of the revenues from road user charges, and will formulate recommendations concerning type of taxes and appropriate levels. During negotiations, the Gov- ernment provided the assurance that it will give the Bank/IDA an opportunity to review these recommendations and to offer comments. E. Engineering and Construction 3.16 Foreign consultants are used for engineering of major highway proj- ects. MPW's Bureau of Technical Services designs minor works, for example farm-to-market roads, which are generally carried out by the Ministry's own forces. The Bureau appears competent in its function, in which it is assist- ed by MPW's soils and materials testing laboratory. 3.17 Major road construction is carried out mostly by contract on the basis of competitive bidding. Only two Liberian-owned contracting firms have experience in road and bridge coDnstruction. To date, three foreign firms with established local branches have executed contracts. The question of developing the local construction industry in Liberia was discussed with the Government during negotiations, and it was agreed to include in the present project a  - 8 - study for promotion of the industry, in particular for road works (para. 4.08). MPW's regional districts supervise road construction, with assistance provided by foreign consultants for some of the works. F. Maintenance 3.18 The Bureau of Operations is responsible for public properties and for highway maintenance, and performs this task through six Regional District and County offices, each headed by a Resident Engineer. The principal func- tion of a District office is the direct supervision of field operations. Maintenance and repair of highway equipment is done by the Bureau's Mobile Equipment Division which comprises the Central Workshops at Monrovia and five field stations. 3.19 SAUTI considers that the present maintenance organization must be strengthened if the highway network is to be kept in good condition. Several slhortcomings are noticeable, including: (i) lack of supervision from Head- quarters over decisions and operations of Resident Engineers; (ii) lack of reporting to Headquarters of maintenance operations performed; (iii) inaccu- rate recording of maintenance expenditures; (iv) absence of regular preventive maintenance for equipment; and (v) inadequacy of programming operations and fujnd allocations. The weakness of the organization as a whole stems mainly from the unclear separation of maintenance responsibilities from other tasks (primarily force accoi t construction), and from a shortage of well-trained sltaff. The proposed project will provide technical assistance to eliminate these deficiencies. 3,20 To reorganize MPW, the consultants recommend creating a Highway Maintenance Division in the Ministry which would have full control over the regions' maintenance operations on the public highway system, including plan- ning and programming of operations, and supervision of labor and equipment usted by Regional Districts. At the same time, the Mobile Equipment Division will be strengthened in equipment, staff, and budget. 3.21 The organizational and staffing problems are compounded by the short- age of maintenance equipment. According to the consultants' assessment, MPW's eqruipment fleet is presently composed of about 200 units, of which more than 55i% are beyond economical repair. The 1964 Bank loan (para. 1.03) had financed US;$860,000 of maintenance equipment, most of which was delivered in 1965 and has now outlived its useful service period. Also, over the past ten years, USAID has provided several batches of highway maintenance equipment; the most recent lot supplied in 1969 will be reconditioned under the proposed project. 4. THE PROJECT A. Description 4.01 The proposed project consists of the following:  -9- (a) technical assistance to HPW to coordinate the various project activities of the Government's program for highway maintenance and development (including the present project); (b) technical assistance to MPW to assist in: (i) its reorganization, (ii) improvement of highway maintenance operations, (iii) training of maintenance personnel, and (iv) conducting a study for promoting the Liberian construction industry; (c) purchase of highway maintenance equipment and spare parts; (d) construction of and equipment for workshop facilities; (e) detailed engineering and construction for upgrading the Monrovia Bypass (8.4 mi), including supervision of con- struction; and (f) (i) detailed engineering for access roads to the port of Monrovia including the Mesurado River bridge, and for Totota-Ganta roaLd (85 mi); (ii) completion of the feasibility study and preparation of detailed engineering for Paynesville-Robertsfield- Totota road (70 mi); and (iii) feasibility study for Monrovia-Mount Coffee Dam road (15 mi). 4.02 The proposed project is a component of the Government's five-year highway maintenance and development program which is estimated to cost ap- proximately US$40 million (Table 1). The program aims at: (i) improving maintenance of the road network; (ii) rehabilitating paved roads which have deteriorated beyond normal repair; (iii) improving primary gravel roads which carry fairly high volumes of traffic; and (iv) providing improved access to economically strategic centers. The program as a whole is well balanced in that it provides adequately for improvement of both the primary road network and of roads in rural areas, and the maintenance element covers requirements of the entire network. In connection with rural roads, special attention is being directed to their development, since in addition to the secondary roads already scheduled in the five-year program for financing by USAID, the Association will undertake under its ongoing project for integrated agricul- tural development (Credit 306-1.BR, US$1.2 million, May 1972) a study of re- quirements in feeder roads and farm tracks in the counties of Lofa and Bong (Map 10292R). 4.03 In order to carry out: such a large program, it is imperative that a coordinator acceptable to all najor donors be appointed for a period of at least three years. His task would be to synchronize the activities of the participating agencies, and to advise the Government on implementation of the  - 10 - program; he would report directly to the Minister of Public Works and Utilities. The Government submitted to UNDP an application for a Program Coordinator) and that agency has accepted in principle to finance his services; formal agreement by signature of the UNDP Project Document is expected shortly. The Bank/IDA will act as Executing Agency for UNDP. The Program Coordinator has already been selected, and USAID and the German Government have agreed on that selection. Detailed terms of reference have been prepared in collaboration with the Coordinator, and agreed with the Government of Liberia. Technical Assistance to MPW Reorganization 4.04 Under the proposed reorganization already accepted by the Government, ME'W will have four Bureaus (see Chart). The Bureau of Administrative Services will remain as now structured, but its accounting procedures will be changed arnd improved. The Bureau of Technical Services will maintain its responsibility for highway engineering. Following the consultants' recommendations, a separate Bureau to be created will be in charge of construction works. The Bureau of Operations will remain in charge of all highway maintenance, but it will be strengthened by the Highway Maintenance Division to be created (para. 3.20); the six existing regional districts will be supervised by the Chief of the Bureau. This centralization of all highway maintenance through the Bureau of Operations is expected to achieve better planning and supervision, and conse- quently, more efficient use of public funds. The Planning Division will be reinforced with additional staff. Improvement of Highway Maintenance Operations 4.05 Technical assistance requirements for MPW to carry out the maintenance program are estimated at 325 man-months over four years (Table 6). Three ex- perts will be assigned to the Highway Maintenance Division to plan and supervise maintenance operations. Another group of three experts will be associated with the Mobile Equipment Division to organize the Central and District workshops. One expert will establish cost accounting and data processing systems within the Bureau of Administrative Services. A transport planner will be assigned to the Planning Division for various periods over the four years to prepare, in con- junction with a team of Liberian engineers and economists, a comprehensive highway development program for the coming decade (para. 3.10). 4.D6 The experts will train counterpart staff. During negotiations, the Government provided the assurance that it will assign counterparts in sufficient numbers, and with adequate education and experience. Training of Maintenance Personnel 4.07 In order to train MPW staff (about 300 employees) over four or five ye,ars, the ongoing programs financed by the Federal Republic of Germany (para. 3.08) will be expanded, and the five experts already in the field will be su:.-plemented by three others (Table 6). A training adviser will be made avail- abLe for a few months to assist MPW in selecting trainees and in preparing the  - 11 - training program. The Liberiani Government will provide classrooms and dor- mitories to accommodate about 60 trainees per year. The Government of the Federal Republic of Germany has already made an initial commitment of about US$700,000 equivalent to finance the costs of the expanded training program. Additional funding of about US'$1.2 million equivalent will be required in mid-1974 to complete the prograim; it is expected that at that time the German Government will consider favorably a request to be made by the Government of Liberia to provide such assistatce. Study for Promoting the LiLberian Construction Industry 4.08 During negotiations on the proposed Loan/Credit, the Liberian delegation expressed the Government's wish to have more local participation in construction works financed by external lending agencies. It was there- fore agreed to include in this project a study of the Liberian construction industry, and of the steps reqtuired to promote increased capacity and com- petitiveness of the industry, iLn particular for road works. This study will be carried out by consultants to be selected in agreement with and under terms and conditions acceptable to the Bank/IDA. Purchase of Highway Maintenance Equipment and Spare Parts 4.09 The project provides for the purchase of new maintenance equipment and of spare parts for existing equipment which is still economically repair- able. Equipment needs have been estimated by SAUTI and revised by the Govern- ment (Table 7). USAID will finiance the purchase of new equipment, spare parts for reconditioning existing US--manufactured equipment (about 85% of the repair- able fleet), radio-communications sets, and traffic counters. A formal agree- ment between USAID and the Government to this effect was signed in February 1973. Construction of Workshop Facilities 4.10 Of the six existing workshops, two built with German financial assistance are being used for training purposes; the other four require im- provements. The buildings are all small, and workshop equipment and tools are insufficient and obsolete. The Central Equipment Workshop in Monrovia and three others located at Pli'bo, Wemsoe and Tapeta will be improved and equipped; two additional workshops will be built at Robertsport and Voinjama and equipped. Two existing service stations will be modernized, and two new ones constructed at Zwedru and Ganta. Upgrading of the Monrovia Bypass (8.4 mi) 4.11 The Monrovia Bypass connects the Kakata Highway east of the capital to UN Drive at the port of Monrovia (Map IBRD 10291R). The Bypass was origin- ally planned in 1963 to be built as a four-lane divided highway with a design speed of 60 mph; however, only the rough grading and major drainage structures were completed, and laterite surfacing was added later on two lanes. The Bypass is now in such poor condlition that traffic has to detour to the already congested city streets of Monrovia. Under the Bank's 1969 port Loan (617-LBR), Stanley Consultants studied the feasibility of upgrading the Bypass together  - 12 - with UN Drive and the construction of a second bridge on the Mesurado River, so as to provide better access to the Monrovia port. The study recommended paving the existing two lanes of the Bypass, and providing it with a bituminous concrete carpet of 22 ft width upon a roadway of 42 ft width; the consultants carried out the preliminary engineering required for this work. The 300 ft right-of-way along the entire length of the Bypass has adequate width for widening the road to divided four-lane standard when this is justified. The proposed project provides for the detailed engineering required for paving the existing two lanes, as well as for the actual construction work and its supervision. Feasibility Studies and Detailed Engineering 4.12 Stanley Consultants' study had also recommended: (a) improving to four-lane standard that section of UN Drive nearest to Monrovia; (b) recon- structing the other two-lane sections of UN Drive; and (c) constructing a new two-lane bridge across the Mesurado River at Johnson Street. The proposed project provides for detailed engineering and preparation of bidding documents for work on UN Drive and on the bridge. 4.13 A feasibility study of upgrading the Totota-Ganta road (85 mi) firLanced by the Overseas Development Administration (ODA, UK) and being carried out by consultants Ove Arup and Partners (UK) is expected to be completed by mid-1973. If upgrading is found feasible, the project will provide for the required detailed engineering. 4.14 The highway maintenance study identified about 70 mi of paved roads which have deteriorated beyond normal maintenance; the sections are located on routes from Paynesville (a suburb of Monrovia) to Robertsfield and to Totota. The proposed project includes consulting services for detailed survey of these roads to define their exact rehabilitation needs, as well as detailed engineering and preparation of bidding documents. 4.15 The road Monrovia-Mount Coffee Dam (15 mi) leads to a water supply plant which generates considerable traffic, to which is added other traffic originating from settlements in the vicinity and along the road. A feasibility study included in the project will be undertaken to determine appropriate im- provements to this road. B. Cost Estimates 4.16 The estimated capital costs of the project are detailed in Tables 8 and 9 and summarized below. Costs are estimates as of end-1973, the expected date of receipt of offers.  - 13 - Source of Proposed Foreign Ccst cost (US$ '000) Bank/IDA Financing Local Foreign Total Financing A. Program Coordinator tNDP ?127 180 B. Highway Maintenance Program (a) Consulting services for reorganization and strengthening of main- tenance operations, and selection of trainees Bank/IDA 300 1,750 2,050 1,750 (b) Training of maintenance personnel Germany 300 1,900 2,200 (c) Highway maintenance equipment and spare parts USAID 350 4,300 44,650 (d) Construction and equip- ment of workshop facilities Bank/IDA 67 300 367 300 Subtotal B 1,017 8.250 9,267 2.050 C. Upgrading of Monrovia Bypass Detailed engineering,con- struction, and su4pervision of construction_r Bank/IDA 850 1,650 2,50o 1,650 D. Feasibility Studiasand Detailed Ehgineering-1 Bank/IDA 130 800 930 800 E. Study of Construction Industry Bank/IDA E 100 115 100 F. Contingencies (on Bank/IDA- financed items) Physical (about 10%) Bank/IDA 75 500 575 Prices (about 10%) Bank/IDA 75 500 575 Subtotal F 15o 1.000 1,150 1,000 TOTAL 2,21 11,927 IL= 5,600 (rounded) 2,200 11,900 14,100 5,600 1/ Cost breakdown of specific items is shown in Table 8.  - 14 - 4.17 Costs of consulting services are based on experience with recent Bank/IDA financed contracts in Western Africa. Costs for the training pro- gram have been calculated by the Federal Republic of Germany. The cost est:imate for highway maintenance equipment and spare parts is based on market prices (without taxes and duties) in Monrovia. Costs for shop equip- ment and remodeling of workshops are based on consultants' estimates. Cost est:imates for upgrading works of the Monrovia Bypass are based on the Stanley Consultants' feasibility study of June 1972; the estimates appear adequate, since the study contains well-detailed preliminary engineering. Taxes and duties represent about 23% of the total cost of construction. No taxes or duties are levied on equipment imported for MPW. An unallocated amount of about US$400,000 has been included by USAID for physical contingen- cie8 and variations in the cost of maintenance equipment and spare parts. About 10% has been added for quantity variations on items to be financed by the Loan/Credit, and a further 10% for price variations. C. Execution 4.18 NPW will be responsible for execution of the project, assisted by several teams of consultants for the study of the road construction industry, recrganization of the Ministry, training of MPW staff, feasibility studies, detailed engineering, and supervision of construction of the Monrovia Bypass. Con,sultants for the construction industry study, and for reorganization, feasibility studies, detailed engineering, and construction supervision will be selected by the Government in agreement with the Bank/IDA; this arrange- ment has been confirmed at negotiations. Consultants for the training prog,ram will be selected by the Federal Republic of Germany in agreement with the Government of Liberia. Signing of the consultantst contracts for technical assistance for reorganization and detailed engineering of the Monrovia Bypass will be a condition of effectiveness of the Loan/Credit. 4.19 Highway maintenance equipment, spare parts for reconditioning existing US-manufactured equipment, radio-communication sets, and traffic counters will be procured and delivered in accordance with USAID procedures. Suppliers will be required to provide an adequate after-sales service in Monrovia. 4.20 Workshop equipment and tools will be procured on the basis of inter- national competitive bidding in accordance with Bank/IDA guidelines. Specifi- cations will be prepared by MPW with the assistance of consultants. Bids will be evaluated on the basis of CIF costs (Monrovia). These arrangements have been agreed with the Government. Workshop buildings will be provided by the Gov,ernment. 4.21 The Monrovia Bypass will be upgraded under a single unit price contract awarded on the basis of international competitive bidding in accord- ance with Bank/IDA guidelines; the Government has agreed to this arrangement. Detailed engineering and bidding documents will be prepared by consultants. Wor1ks are expected to start early in 1974 and be completed within 18 months.  - 15 - 4.22 Implementation of the highway maintenance program will not in- crease employment; some additional equipment operators, foremen, and master- mechanics will be recruited, but the total MPW labor force will remain about the same. However, laborers and mechanics employed under the project will be utilized more efficiently, and will be trained to improve their qualifications. The upgrading works on the Monrovia Bypass are expected to create direct em- ployment for about 200 laborers over the expected 18-month construction period. D. Financing and Disbursements 4.23 The total capital cost oL the project is estimated at about US$14.1 million equivalent; of this, about US$11.9 million are foreign exchange costs, representing about 84% of total capital cost, or 87% of the cost net of taxes. Proposed Bank/IDA participation of US$5.6 million will cover the foreign costs of the project items listed in para. 4.16, including retroactive financing of up to US$50,000 for detailed engineering of the Monrovia Bypass. 4.24 The following table summarizes the approximate breakdown of the fi- nancing of project costs as detailed in Table 9: (US$ millions) Local Foreign Total Bank/IDA - 5.6 5.6 USAID 0.1 4.3 4.4 Germany - 1.9 1.9 UNDP - 0.1 0.1 Liberia 2.1 - 2.1 2.2 11.9 14.1 4.25 In addition to its capital investment in providing the local costs of the project (approximately US$2.1 million equivalent), the Government will be expected to allocate funds to meet the recurrent cosLs of road maintenance which will increase over the project period from about US$2 million in 1973 to about US$2.9 million in 1977 (Table 9). These annual allocations are necessary to assure adequate maintenance of the network and regular renewal of the equipment fleet. The Government has confirmed at negotiations that it will meet the local capital and recurrent costs of the project as set out in Table 9. In order to ensure a proper cash flow for the project, the Govern- ment also agreed to set up within the Development Budget a revolving fund which would be replenished periodically out of the general budget (para. 3.13). 4.26 Disbursements from the Loan/Credit account will be made on the following basis: (a) the actual foreign exchange cost of consulting services for technical assistance, feasibility studies and detailed en- gineering, construction supervision, and the study of the Liberian construction industry;  - 16 - (b) the CIF cost (Monrovia) of equipment imported for MPW workshops; (c) 66% of total expenditures under the construction contracts for upgrading the Monrovia Freeway, representing the estimated foreign component of this item. A schedule of cumulative quarterly disbursements from the proposed Loan/Credit is shown in Table 10. 5. ECONOMIC EVALUATION A. General 5.01 The project is designed to meet the highest priority requirements of Liberia's transport sector - better maintenance of the road network, and improved access to the port of Monrovia and to potentially productive areas of the country. The need is clear for better maintenance to prevent further deterioration of roads, a condition which would eventually lead to steadily rising costs for transport as well as for road maintenance and rehabilitation. The resultant savings ia, vehicle operating costs will release considerable amounts of foreign exchange which can then be invested in other segments of the country's economy. The free competition in the trucking industry (para. 3.05) means that reduction in transport costs can be expected to be passed on to Liberian producers and consumers. These elements can all combine to constitute a positive factor in developing the Liberian economy. B. Highway Maintenance Program 5.02 The objective of the maintenance program is to eliminate the back- log of deferred maintenance, and to ensure that, in the future, highways can be aaintained efficiently and to adequate standards. The improved organiza- tioin of road maintenance will result primarily in more effective use of man- power and equipment; technical assistance for reorganization of workshops and improvement of workshop facilities will reduce the time required for equipment repairs. The program will yield benefits in: (i) reduction in vehi.cle operating costs, and avoidance of future increases; (ii) reduction in t:he cost of regular and periodic road maintenance; and (iii) savings achieved by delaying investments in reconstruction or upgrading of certain roads. The latter category of savings is, however, small as compared with the first two, and has not been quantified. Benefits would begin to accrue in the first year of the program, and would increase steadily thereafter. DetaLils on the coverage of the program, and the type and lengthl of the road system to be maintained, are given in the Annex. 5.03 The maintenance program has been evaluated as a comprehensive pack- age, irrespective of the source of financing. The analysis compares vehicle operating costs and road maintenance costs with and without the project, both expressed as functions of traffic volumes. Roads have been categorized in  - 17 - terms of surface condition, and present and forecast traffic. Inputs of traf- fic and growth rates, vehicle operating costs and road maintenance costs, and capital investments, are based on the SAUTI study, modified as necessary by the findings of the appraisal mission. 5.04 The economic life of the maintenance project has been assumed to be eight years, which is the weighted average life of the equipment. Since there is no systematic traffic counting program in Liberia, the traffic volumes and projections used in the analysis have a narrow data base, and the best estim- ates for these inputs can possibly show an error of t 20%. The estimation of vehicle operating costs is also difficult since few vehicle owners keep good records; the average figures used in the analysis could therefore be in error by as much as t 10%. Estimates of capital costs of the road maintenance program include a 20% allowance to cover quantity and price uncertainties. A sensitivity analysis has been done which takes into consideration the pos- sible variations in inputs discussed above. The results of this analysis show that under the worst possible conditions of traffic volumes, operating costs and capital costs, the maintenance program would yield an economic return (ER) of 16%, and a benefit/cost (B/C) ratio of 1.1 discounted at 10% which is the estimated opportunity cost of capital in Liberia. However, on the basis of the most likely estimates of inputs, the program yields an ER of 30% and a B/C ratio of 1.5. A summary of the economic analysis of the project is shown in the Annex. C. Upgrading of Monrovia Bypa ss 5.05 The port access road, UN Drive, and the Mesurado River bridge together carry daily traffic levels of over 20,000 vpd. These vehicles com- prise large petroleum tankers, trucks which distribute Liberia's imported con- sumer goods and transport its agricultural export production, and passenger vehicles which carry businessmen and workers between the capital's commercial and residential areas and the teeming port of Monrovia. 5.06 To relieve this congestion, the Government in 1965 started con- struction of the Monrovia Bypass away from the city center. The existing two-lane road is now badly deteriorated laterite, and is almost impassable during the six-month rainy season. As a result, traffic which would normally prefer this shorter route is forced to use Monrovia's streets and other port access roads, thereby adding to the already high congestion in the city. Upgrading the Bypass would not only reduce transport costs to traffic normally using it (about 2,000 vpd), but more importantly, much transit traffic would be attracted, thus reducing city congestion and its associated costs. 5.07 Benefits derived froml upgrading the existing Bypass would include: (i) savings in vehicle operating costs to traffic already using the Bypass; (ii) savings in time and in vehicle operating cost to traffic which would be diverted from the congested MonLrovia streets to the improved Bypass; and (iii) savings in time and in operating costs following decongestion on the other port access roads.  - 18 - 5.08 Inputs of present and future road traffic, vehicle operating costs, capital investments, and road maintenance costs are based on Stanley Consult- ants' feasibility studies, modified where necessary by the findings of the appraisal mission. Passenger time savings in the project are important be- cause they involve businessmen and vehicle operators whose time has a rela- tively high economic cost. These savings have however not been quantified in the analysis due to lack of adequate data. The only uncertain inputs are the projected traffic growth, where an error of t 20% is quite possible, and the construction costs, which could show an error of t 10%. A sensitivity analysis based on the above possible variations shows the ER to be over 20% for the worst foreseeable combination of inputs. Under the most probable estimate of inputs, the project yields an ER of 42% and a B/C ratio of 1.9 discounted at 10% per year. The economic life of the investment is assumed to be 20 years, and the abovementioned ER takes into consideration the paving to four lanes by 1985 of the western end of the Bypass where traffic is heaviest. Details of this analysis are shown in the Annex. D. Other Project Elements 5.09 The studies under the project include: (i) detailed engineering for the access road to the port of Monrovia, the UN Drive, and the Mesurado River bridge; (ii) sur-vey and detailed engineering for rehabilitation of about 70 mi of paved roads; (iii) detailed engineering for the Totota-Ganta road; (iv) feasibility studies for the Monrovia-Mount Coffee road; and (v) a study for promoting the Liberian construction industry. 5.10 The study of the port access road indicated that construction of the Mesurado River bridge and upgrading the road by the end of 1976 would yield ERs of 26% and 35% respectively. The highway maintenance study showed that restoration of about 70 mi of paved roads would yield an ER of 32%. The consultants Ove Arup are still studying the feasibility of upgrading the Totota- Ganta road which carries traffic of about 600 vpd, but a preliminary analysis shows that paving this road would yield an ER of about 40%. There is a prima facie case for studying the feasibility of upgrading the Monrovia-Mount Coffee road which carries about 500 vpd, but which is still an unengineered track. On the basis of savings in vehicle operating costs alone, the preliminary analysis of this project indicates an ER of over 25%. Details of the econo- wic analysis for the Totota-Ganta and MIonrovia-Mount Coffee roads are shown in the Annex. The study of the construction industry will provide the basis for determining the steps to be taken to increase the capacity and competitive- ness of local contractors. 6* AGREEMENTS REACHED AND RECOMMENDATION 6.01 During Loan/Credit negotiations with the Government, the following priLncipal items were discussed and agreed: (i) coordination of MPW's highway planning with the country's overall planning activities (para. 2.11); (ii) strengthening of the enforcement of vehicle weight regulations (para. 3.05);  - 19 - (iii) formulation by the Government of a program satisfactory to the Bank/IDA to attract engineers to its civil service in sufficient numbers (para. 3.07); and (iv) provision of funds sufficient to meet increased road main- tenance expenditures (para. 3.13) and the local capital and recurrent costs of the project (para. 4.25). 6.02 Signing of the consultants' contracts for technical assistance for reorganization and detailed engineering of the Monrovia Bypass will be a con- dition of effectiveness of the Loan/Credit (para. 4.18). 6.03 The project is suitable for Bank/IDA lending to the Government of Liberia in a total amount of US$5.6 million, consisting of a Loan of US$3.0 million and a Credit of US$2.6 million. An appropriate Loan term would be 25 years with a 5-year period of grace. The Credit would be made on the usual terms. May 7, 1973   Table 1 LIBERIA SECOND HIGHWAY PROJECT Five-Year Highway Maintenance and DeveloPment Proxram (1973-77) Expected Cost Source of (US$ '000) Pro.Ject Financing Looal Foreign Total A. Maintenance Program 1. Technical Assistance Bank/IDA 300 1,620 1,920 2. Training Program Germany 150 1,150 1,300 3. Equipment and Spare Parts USAID 150 3,870 4,020 4. Paved Road Rehabilitation Bank/IDA 400 1,600 2,000 (70 mi) 5. Workshops Bank/IDA 50 250 300 Subtotal A 1.050 8,490 9,540 B. Prinfr Roads (miles) 1. Port access roads and Bank/IDA 14 2,320 6,180 8,500 bridge 2. Sierra Leone-Liberia ADB 6 180 730 910 3. Totota-Ganta Bank/IDA 15 1,210 4,790 6,000 4. UN Drive-Mt. Coffee Bank/IDA 16 460 1,580 2,040 5. Tubman Bridge-Bosi Hills ADB 45 390 1,570 1,960 6. Kakata-Doubli Is.-Totokola Germany 38 610 2,460 3,070 7. Ganta-Samiquellie not committed 25 110 440 550 8. Ganta-Tapeta (feasibil- not oamitted 400 80 320 400 ity study only) 9. Tatuke-Kaloke (feasibil- not committed 40 20 80 100 ity study and detailed engineering) Subtotal B J22 5,380 18.150 23,53o C. Secondary Roads 1. Sagleipie-Bahn-Sanniquellie USAID 60 330 1,330 1,660 2. Plibo-Barolayville USAID 45 350 1,390 1,740 3. Brewerville-Bella Yella USAID 100 560 1,440 2,000 4. Bella Yella-Zorzor USAID 65 310 1,010 1,320 5. Buchanan-River Cess USAID 30 150 470 620 Subtotal C 300 1,700 5,640 7.34o TOTAL (A. B and C) 899 8,130 32,280 40.41 Source: MiniBtry of Planning, November 1972 February 1973  Table 2 LTIBERIA SECOND HIGHWAY PROJECT Development of the Highway Network (miles) 1961 1971 A. Public Roads Primary roads Asphalt surfacing 129 160 203 Laterite surfacing 615 650 9W1 Secondary and farm-to-market roads Laterite surfacing 126 330 48 7 Dry-weather road 336 610 1 ,270 Subtotal A 1,206 1 750 90 B. Private Roads Asphalt surfacing 20 30 86 Laterite surfacing 147 500 1 , 1 r84 Subtotal B 167 530 1,270 TOTAL - 11373 21260 -4171 Sources: Transportation Survey of Liberia,Brown Engineers, 1963 SAUTI report, 1971 February 1973  Table '3 LIBERIA SECOND HIGHAY PROJECT Vehicle Registration and Gasoline Consumption, 1961-70 Vehicle Registration (units). Gasoline Consumption (3000 US gal) Passenger Taxi- Year Cars cabs Trucks Buses Total 1961 _ - - - 7,900 9,150 1962 - - - 8,500 14,400 i963 - - .. - 9,280 - 1964 - - - 9,500 8,800 1965 - - - 10,000 8,460 1966 5,762 1,728 2,795 1,447 11,732 10,730 1967 7,268 2,299 3,)483 1,986 15,036 12,111 1968 8,919 3,434 4,543 2,785 19,681 14,340 1969 9,880 3,853 4,9108 2,995 21,636 17,000 1970 9,377 4,735 5,23 4 3,864 23,210 19,000 Average Annual Growth Rate: 11 35% 10.65% Note: - figures not available Sources: SAUTI report, 1971 Motor Vehicle Division, Treasury Department, November 1972 February 1973  LIBERIA SECOND HIGHWAY PROJECT MNW Bureau of Operations - Personnel Qualification On duty Required Capacity (i) Sbaff Engineers 8 10 Shop Superintendents 6 9 Assistant Shop Super- 21 21 intendents General Foremen 112 96 Subtotal 10 1L3 (ii) Sibordinates Clerical staff 102 105 Operators 161 80 Mechanics 57 5 Mechanical Helpers 40 40 Electricians and Wdelders 19 24 Drivers 154 180 Laborers 967 1,050 Carpenters, Plumbers, 20 - Painters, etc. Subtotal 1.520 124 .TOTAL 1,667 Sources: MNW Annual Report, 1970 SAUTI report, 1971 April 1973.  Table 5 L BERIA SECaND HIGHWAY PROJECT MPW Bureau of dpetat iMaitenance Budget Year Pereonnel Operations TIOTAL 1968 484 730 1,214 1969 494 880 1e374 1970 615 886 1, 501 1971 875 689 1,564 1972 899 973 1i,872 Sources: MPW Bureau of Operations, November 1972 SAUTI report, 1971 February 1973  Table 6 SECOND HIGIWAI PR04ECT Technical Assistance Requirements (man-months Provided 1973/74 1974/75 1975/76 1976/77 Total by Prograrm Coordinator UNDP 10 10 10 10 40 Subtotal 40 Highwar Maintenance Program Program Director (Supervisor) Bank/IDA 3 1 1 2 7 Highway Maint. Engineer (Project Manager) 17 11 11 11 So Mechanical Engineer (Deputy Project Manager) 15 11 11 8 45 Master Mechanics 12 10 12 11 45 Master Mechanics 1I 11 11 11 44 Highway Technician 11 11 12 12 46 Highway Technician 6 11 11 10 38 Administrative Expert 16 4 6 4 30 Transport Economist/Planner 8 4 4 4 20 Subtotal: 325 Training Program Training Adviser Bank/IDA 3 - - - 3 Project Manager Germany 10 10 10 10 40 Workshop Specialist (2) 12 20 20 20 72 Road Maintenance Spec. (2) 12 20 20 20 72 Theoretical Course Spec. (2) 10 20 20 20 70 Adminis. Affairs Spec. (1) 110 10 10 31 Subtotal : 288 TOTAL 653 Source: SAUTI report, 1971 MiBsion estimates, November 1972 Ar:Ll 1973.  LIBERIA SECOND HIGHWAY PROJECT Equipment Needs for Proposed Highway Maintenance Program (Units) cEquipment to be Purchased Scrapped Total Available Total Needed Unit Price Total CIF Cost Item Existing by 1974 in 1974 in 1974 Number (market price) Monrovia (in US$) Dump Truck 130 HP) 13 52 39 9,000 351,000 Dump Truck 190 HP) 79 66 - 24 24 12,000 288,000 Grader 125 HP 23 17 6 27 21 30,000 630,000 Front Loader 80 HP 17 + 2 15 4 9 5 20,000 100,000 Hand Compactor (vibrator) 18 18 - 15 15 1,500 22,500 Tractor 60 HP 17 17 - 11 11 6,500 71,500 Pneumatic Roller 9 Ton (towed) - 11 11 5,000 55,000 Tank Truck 2,600 g 4 4 - 18 18 14,000 252,000 Rotary Broom - 2 2 2500 5,000 Asphalt Distributor 1,000 g 3 2 1 2 1 25,000 25,000 Asphalt Finisher 70 HP 1 - 1 2 1 45,000 45,000 Pneumatic Roller SP 10 Ton - 2 2 13,000 26,000 Steel Roller (Tandem) 8-10 Ton - 2 2 12,000 24,000 Patching Truck 260 g - 2 2 14,000 28,000 Stripping Machine - 2 2 2,500 5,000 Spreader Box 2 2 - 3 3 3,000 9,000 Low Bed Trailer (20-25 Ton) 5 5 4,000 20,000 Truck Tractor 5 5 20,000 100,000 Bulldozer 140 HP - 7 7 40,000 280,000 Mobile Service Van 4 4 - 6 3 30,000 90,000 Mechanic's Truck (4x4) w/Tools 7 7 10,000 70,000 Grease Unit (Trailer Mounted) 3 3 - 6 6 5,000 30,000 Grease Unit (Trailer Mounted) 7 7 11,000 77,000 Traffic Counters 10 10 1,000 10,000 Radio Equipment (7 fixed, 8 mobile) lump sum 60,ooo 60,000 2,674,000 Spare parts (10%) 267 400 2,941,400 Procurement services (5% + $40,000) 190,000 Spare parts for existing equipment ($250,000 parts + $100,000 labor) 350,000 Shipping and insurance (15%) 486 210 Subtotal 3T967,610 Contingency (10%) 396,760 Total 4,364,370 (Rounded $4,400,000) Source: SAUTI and DPW, November 1972, USAID, February 1973. March 1973  LIBERIA Table 8 SECOND HIGHWAY PROJECT Cost Estimates by Project Item Source of Cost (US'OOO) Foreign Cost Foreign Financing Local Foreign TOTAL Component A. Program Coordinator for MPW UNDP 53 127 180 71% B. Highway Maintenance Program (a) Consulting services for Bank/IDA 300 1,750 2,050 85% reorganization, strengthening of maintenance operations, and selection of trainees (b) Consulting services for Germany 300 ,900-1/ 2,200 86% training of MPW staff; construc- tion of classrooms and dormitories, including pedagogical equipment (c) Purchase of highway maintenance USAID 350-/ 4,300 4,650 92% equipment, spare parts, radio-commun- ication sets, and traffic counters, inzluding contingency allowances (d) Purchase of workshop equipment Bank/IDA 67 300 367 82% and tools, and improvement of existing workshops /2 Subtotal B 1,017- 8.250 9.267 89% C. Upgrading of the Monrovia Bypass - Detailed engineering Bank/IDA 25 45 70 - Construction ,, 770 1,500 2,270 - Supervision of construction ,, 55 105 160 Subtotal C 850 1L650 2,500 66% D. Feasibility Studies and Detailed Engineering - Strengthening of paved roads (70 miles) Bank/IDA 37 190 227 - Mesurado River Bridge and Improvement of UN Drive " 65 343 408 - Totota-Ganta Road " 25 250 275 - Mlount Coffee Road " 3 17 20 Subtotal D 130 800 930 86% E. Study of Construction Industry Bank/IDA 15 100 115 87% F. Contingencies (on Bank/IDA Participation) Physical (about 10%) 75 500 575 Price (about 10%) 75 500 575 Subtotal F 150 1,l000 1150 87% TOTAL (A through F) ,L25 _11,927 14,142 84% 1/ Of which about US$700,000 equivalent presently authorized by Germany 2/ Of which about US$100,000 equivalent also financed by USAID Sources: UNDP Project Document SAUTI Report, 1971 USAID, February 1973 MPW and Mission Estimates April 1973  Table 9 LIBERIA SECOND HIGHWAY PROJECT Estimated Expenditures aver the Protect Period (US$ '000) 1. CAPITAL COSTS 1973/74 1974/75 1975/76 1976/77 TOTAL A. Bask/TDA CostrLbuti-o - Consolting services for re-rgani-ation, 500 (100)/ 450 (100)/ 450 (100)/ 350 1,750 (300)1 strengthe-ing of maiatenaace speration, and selection of trainees imPcrchsea of oksknp eoqipnnot ad tools, end 50 (20) 200 (30) 50 (17) - 300 (67) inprovenet or esistiog workshops - Upgrading of the M-onroia Bypass datailed engineering, connstrction, and 650 (400) 1,000 (450) - - 1,650 (050) -sporsision of construction - eeisbility stndies sod derailed engineering fr: - stre-gthening of paved roads (70 miles); 200 (20) 90 (17) - 3 I90 (37) - Mesrado liver bridge and inpravenest of ON Drive 143 (15) 200 (50) - - 343 (65) - Totota-Gasta Road; and 50 (10) 100