Mauritania - Fourth Highway Project

` 1 7 2-27 Document of The World Bank F E FOR OFFICIAL USE ONLY Report No. P-2997a-MAU REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE ISLAMIC REPUBLIC OF MAURITANIA FOR A FOURTH HIGHWAY PROJECT March 25, 1982 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Ouguiya (UN) US$1.00 = UM 47.00 UM 1 million = US$21,277 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AF = Arab Fund for Economic and Social Development CILSS = Comite International de Lutte contre la Secheresse au Sahel DRA = Division of Roads and Airports IDA = International Development Association KF = Kuwait Fund for Arab Economic Development METT = Ministry of Equipment, Transport and Telecommunications PWD = Public Works Department SF = Saudi Fund for Economic Development SPW = Service of Public Works FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY ISLAMIC REPUBLIC OF MAURITANIA FOURTH HIGHWAY PROJECT CREDIT AND PROJECT SUMMARY Borrower: Islamic Republic of Mauritania Amount: SDR 3.4 million (US$4.0 million equivalent) Terms: Standard IDA Colenders: Kuwait Fund and Arab Fund for Economic and Social Develop- ment Project Description: The proposed project would complete and protect betterment works carried out under the Third Highway Project, help Government formulate a rational road maintenance policy, and prepare a follow up project. It would consist of: (a) a maintenance study, including a review of sector policy and maintenance organization, road investment financing, and construction materials; (b) engineering studies for reinforcement and rehabilitation of the Rosso-Akjoujt road (450 km) and for partial improvement of the Nouakchott-Kiffa-Nema road (1,150 km); (c) consultant services and contractors to carry out engineer- ing, completion of earth works and construction of drainage structures for the Boghe-Kaedi and Atar-Oued Seguelil roads; and (d) equipment, materials, supplies, and personnel training for urgent maintenance works on the Nouakchott-Kiffa-Nema road. The completion of the Third Highway Project's betterment works would assure that the full benefits of this important invest- ment are realized. The maintenance study would (i) develop a road maintenance policy in accordance with the country's present financial and institutional limitations; and (ii) lay the groundwork for establishing a more effective maintenance organization taking into account Government's recent decision to employ contractors for periodic maintenance. The engineer- ing studies would prepare for the badly needed rehabilitation of the country's two major paved road axes. There is a risk that, as in the past, this project would experience implementa- tion delays and cost overruns. However, the program of better- ment works (Boghe-Kaedi and Atar-Oued Seguelil) included under the project is manageable as the risk of poor execution would be reduced by the use of contractors. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Cost: The total cost is estimated at US$14.3 million equivalent, (net of tax) of which about US$11.9 million (about 83 percent) would be foreign exchange. The project would be exempt from identifiable taxes and duties. A summary cost table is shown below and detailed cost estimates are in Annex IV. (US$ '000) Local Foreign Total I. Studies 499 2,000 2,499 (1) Road Maintenance 59 238 297 (2) Rehabilitation and Reinforcement Nouakchott-Rosso (203 km) and 200 801 1,001 Nouakchott-Akjoujt (256 km) roads (3) Partial improvement of 240 961 1,201 Nouakchott-Nema road II. Engineering and Completion of Earthworks and Drainage Structures 1,640 6,560 8,200 (1) Boghe-Kaedi 1,040 4,160 5,200 (2) Atar-Oued Seguelil 600 2,400 3,000 III. Malnte7..:.ce Wor'rs Nouakchott-Kiffa 216 3,358 3,574 (1) Equipment 0 2,295 2,295 (2) Operating Costs (for 2 years) 216 863 1,079 (3) Personnel Training 0 200 200 TOTAL COST 2,355 11,918 14,273 (2,400) (11,900) (14,300) of which: Base cost 2,048 9,620 11,454 Physical contingencies 263 629 786 Price contingencies 461 1,669 2,033  - iii - Costs and Financing Plan (US$ Million) AF and Financing Plan Total KF Government IDA I. Studies (1) Road Maintenance .3 .3 - * (2) Rehabilitation and Rein- forcement Rosso-Nkt-Akjt 1.0 - - 1.0 (3) Reinforcement Nkt-Nema 1.2 1.2 II. Structures (1) Boghe-Kaedi 5.2 - 5.2 1/ - (2) Atar-Oued Seguelil 3.0 - - 3.0 III. Maintenance Works on Nouakchott-Nema 3.6 3.6 - TOTAL 14.3 5.1 5.2 4.0 Estimated Disbursements: FY83 FY84 FY85 FY86 FY87 FY88 FY89 (USs millions) Annual 500 900 1,000 800 500 200 100 Cumulative 500 1,400 2,400 3,200 3,700 3,900 4,000 There is no Staff Appraisal Report. Map: IBRD 15467 1/ The AF has informed us that the Government would contribute funds to finance the Boghe - Kaedi road component, equivalent to at least 5 percent of the total project cost. The balance of the AF loan, after financing the Boghe - Kaedi road component would be used to finance recurrent maintenance costs of the Nouakchott-Nema road.   INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE ISLAMIC REPUBLIC OF MAURITANIA FOR A FOURTH HIGHWAY PROJECT 1. I submit the following report and recommendation on a proposed Development Credit to the Islamic Republic of Mauritania for the equivalent of SDR 3.4 million (US$4.0 million) to help finance the Fourth Highway Project. The Credit would be on standard IDA terms. Additional financing will be provided by the Kuwait Fund through a loan of US$5.1 million equiva- lent with a term of 25 years including 5 years of grace and a service charge of 0.5 percent. The Arab Fund and the Government would contribute US$5.2 million equivalent. The Arab Fund loan would be for a term of 20 years including 5 years of grace, with interest at 0.4 percent. PART I - THE ECONOMY 2. A report entitled "Islamic Republic of Mauritania: Recent Economic Developments and External Capital Requirements" (2479a-MAU) dated June 4, 1979, has been distributed to the Executive Directors. Since then, a number of economic missions have visited Mauritania to monitor the current economic and financial situation and prospects of the economy. Country Data appear in Annex I. The Land and its People 3. Although not classified among the "Least Developed countries", given its per capita GNP (US$320 in 1980), Mauritania indeed bears many of the characteristics of those countries in terms of physical and human resources. Most of the country is desert; agriculture, while supporting some 85 percent of the population, is generally limited to the sub-Saharan zone in the south, where rainfall is nonetheless sparse and irregular. Pockets of modern eco- nomic activity, are found in the mining complex of Zouerate, the fishing center of Nouadhibou and the administrative capital of Nouakchott. These pockets largely account for the income level referred to above (mining and public administrative services alone account for 40 percent of total output). -' Yet only abut 10 percent of the country-s labor force is engaged in the modern sector, and indeed the shortage of trained manpower poses a major constraint on economic development. Moreover, these pockets of modern activiity are well separated geographically from the agricultural zone, and there is little economic interaction between the modern and traditional sectors. 4. The extremely low standard of living of Mauritania's population (est. 1.6 million in 1980) is reflected in key social indicators: life expectancy at birth is estimated at 43 years, infant mortality is 169 per 1,000, less than 30 percent of the school age children attend primary school and only 17 percent of the population is literate in either Arabic or French.  - 2 - Economic Developments and Medium-Term Outlook 5. In contrast to its record of relative stability and strong growth of 8 percent a year in the 1960's, the Mauritanian economy experienced a sharp deceleration in growth in the mid-1970s and a period of marked finan- cial instability in the latter part of the decade. Over the past four years, (1978-81), economic growth is estimated to have averaged only 1.2 percent a year, one and a half percentage points below the rate of growth in population. 6. The country's weak economic situation persists despite an extra- ordinary inflow of foreign grants and loans averaging more than US$100 per capita a year since 1973, largely from OPEC countries. Factors primarily responsible are reduced world demand for iron ore, on which Mauritania has traditionally been dependent for 70-80 percent of its export earnings, and severe and repeated drought in the agricultural sector. The effects of these factors were compounded in the 1970's by the prolonged military conflict in the Western Sahara and by a poorly conceived investment policy centered on transport infrastructure and a few large industrial ventures. The con- sequences for the country were reflected in budgetary deficits averaging some US$90 million a year 1976-79, and, on overall external account, a serious drain on the country's net foreign reserves (US$36 million in 1975 and US$43 million in 1977). 7. In mid-1978, the economic and financial situation led the Govern- ment, with the assistance of the Bank, to prepare a Rehabilitation Plan which proposed as immediate priority the renegotiation of external debt totalling US$215 million, more than 40 percent of the disbursed debt outstanding at the time. The Plan also called for strict conditions on the Government's future borrowing, tight control of public expenditure and major revisions in public investment priorities. 8. Since mid-1978, the financial situation of the country has improved through Government adherence to measures recommended under the Plan and a subsequent IMF Stand-By Arrangement, this coupled with both debt relief and fresh concessional foreign assistance on a substantial scale. As a result, the earlier drain on the country's foreign reserves has been curtailed and, as of 1981, the budgetary deficit (after debt service) had been reduced from its 1977-78 level by some 35 percent. The Government's financial situation, nonetheless, remains strained although budgetary aid from abroad is presently less than half that of 1978, the situation calls for continued reliance on concessional assistance from abroad, including full local cost financing, as well as demanding the Government's perseverance in exercising prudent economic and financial management. 9. The economy should be significantly strengthened towards the mid- 1980's as a result of expanded iron ore production. Although virtually no improvement in international prices in real terms is expected before 1985, the volume of Mauritania's exports is projected to have climbed by that  time to a level 55 percent above that of the past three years, assuming full utilization of mine capacity. Beyond 1985, production capacity would level out as the presently mined Kedia deposits approach depletion and their production is replaced by the Guelbs operation (Phases I and II). 10. Iron mining would remain the principal source of growth--indeed an important stimulus to the economy--through the first half of the 1980's. During this period overall growth could average as much as 4 percent a year, assuming the expansion of iron ore production cited above (para. 9 ). The agricultural sector can be expected to expand at somewhat below that rate, however, due in general to the long gestation period of projects in that sector and in particular to the limited pace at which irrigation can realistically be achieved in Mauritania. PART II - BANK GROUP OPERATIONS IN MAURITANIA 11. The Bank Group has had 17 operations in Mauritania for a total of US$216.2 million. Of these, two are Bank loans for mining operations: US$66 million for MIFERMA in 1960, and US$60 million to SNIM in 1979 (Guelbs Project). Thirteen others are IDA credits totalling US$70.2 million. Of the IDA operations, four are in the transport sector, five are in the rural sector, and the others are for education, technical assistance to the Ministry of Economy and Finance, the urban and rural development fund and energy. In 1968, IFC made a loan to and an equity investment in SOMIMA, the copper mining company, which totalled US$20 million; this IFC participation and the accom- panying loan were paid back when the Government nationalized SOMIMA in 1974. Annex II contains a summary statement of Bank loans and IDA credits as of January 31, 1982, and notes on the execution of ongoing projects. 12. Implementation of Bank Group projects has often been retarded by administrative inefficiency within the Government. Moreover, large distances, lack of basic infrastructure, the small number of contractors operating in the country, and the need to recruit a high proportion of expatriates to implement works and to staff projects have contributed to high project costs. These factors, aggravated by the exceptional situation prevailing in Mauritania during the 1970s (para. 6), high inflation, and unfavorable exchange rates, have led to cost overruns on many projects. In addition, the country's difficult financial situation has forced the Government drastically to curtail expenditures, including local funds for its ongoing development program. This has called for a reduction in the scope of some of these projects. For example, during execution of the Third Highway Project (Credit No. 519 MAU), IDA and the Kuwait Fund, the co-financier, agreed to scale down the project to enable 100 percent coverage of the remaining foreign and local costs. However, disbursements of IDA funds in general remained extremely slow. Therefore, the Association increased the number of supervision missions to assist in improving project implementation in general and in processing withdrawal applications, in particular. The direct payment method was also used whenever possible and expatriate experts were provided to assist in managing project accounts. Recently, some progress has been noted.  13. The Mauritanian authorities are acutely aware of the difficulties encountered in project execution, some of which, related to geography or to the early stage of the country's development, will persist for years to come. IDA's two technical assistance projects to the Ministry of Economy and Finance (formerly Planning) and to SONADER are important elements of the Government's efforts to tackle the problem. By strengthening Government's project prepara- tion capacity and by providing for more systematic monitoring of execution, these projects are helping Government invest in operations better adapted to the country's conditions. The proposed Fourth Highway Project as well as the recently approved Second Education project would also identify ways in which the sector's administration can be improved and bottlenecks in project execu- tion eliminated. 14. In 1970-72, the Bank Group was the third largest donor (providing about 18 percent of Mauritania's external capital assistance) behind France (21 percent) and the EEC (19 percent). With the rapid growth in external financial assistance extended to Mauritania, the Bank Group's share decreased to about 6 percent in 1977. Bank Group strategy now emphasizes: (a) dialogue with the Government on financial and economic matters in cooperation with the IMF and other financial institutions; (b) technical assistance to improve economic management and to increase absorptive capacity; and (c) intervention in a few high-priority development projects particularly for the mobilization and coordination of large amounts of external aid from traditional donors and Arab OPEC countries. Thus the Bank Group has appraised a follow-up technical assistance project to the Ministry of Economy and Finance and a separate technical assistance project to the rural sector. Further Bank Group involve- ment is also envisaged in the livestock, irrigation, and energy sectors. PART III - THE TRANSPORT SECTOR The Transport System 15. The transport system in Mauritania consists principally of three regional networks which are not yet well integrated. They are built around the mining and fishing centers in the North, the capital city of Nouakchott on the west coast, and the agricultural region of the South. The northern system comprises a deep water port at Nouadhibou, a 675-km railroad for the evacua- tion of iron ore, and regional airports. The capital city has a wharf, an international airport, plus three paved roads leading towards the North, South and East. The southern network includes earth roads, river transport and local airports serving the Senegal River Valley, the most agriculturally productive area of the country. A fourth network is gradually emerging around Nema, the capital of the livestock production region, with the construction of Nouakchott-Nema road and an international airport. Roads 16. The road sector is characterized by very high construction and maintenance costs due to vast distances, lack of good materials, difficult topography and climate, and a shortage of skilled manpower. Moreover, the road network is subject to flash floods during the rainy season and sandstorms  - 5 - during the dry season, which accelerate deterioration and increase maintenance costs. The road network consists of about 7,800 km of which 1,500 km are paved, 600 km are improved earth roads, and 5,700 km are unimproved tracks. The network includes four principal axes: (i) a north-south axis stretching 1,850 km from Rosso on the Senegal River to Atar and the Algerian border in the north, 459 km of which are paved; (ii) two east-west axes, one totally unpaved in the south from Rosso to Nema, and one in the center, from Nouakchott to Nema, 1,041 km of which (Nouakchott-Kiffa-Timbedera) is paved; and (iii) a central unpaved axis linking Boghe (on the Senegal River), with Aleg and Tidjikja (see map). Traffic volumes on the main north south road are esti- mated to be 300 vpd to the north of Nouakchott and 100 vpd to the south. Other roads carry moderate traffic which cannot be reliably estimated. Traffic statistics would be updated through studies financed under the project. 17. At present, freight is moved by a few small trucking companies and by owner-drivers organized into a cooperative. Passenger transport is provided by private inter-city taxis and mixed passenger/freight vehicles. The Ministry of Equipment and Transport (MET) sets maximum tariffs, but there do not appear to be other effective restrictions on private competition. Public passenger transport is expected to be provided by a public enterprise that went bankrupt in 1978, but is now being rehabilitated. Development Policy 18. Government's transport policy since independence has centered on two main objectives: (i) to serve centers of economic activity; and (ii) to unify and develop Mauritania as a cohesive nation. In line with this policy, the Bank Group financed the construction and extension of a railroad for the evacuation of iron ore; developed the commercial port of Nouadhibou; and financed the construction of the Nouakchott-Rosso road, the main link between the capital city and the country's important agricultural region. It promoted rehabilitation of gravel roads in the various parts of the country (Atar-Choum and Boghe-Kaedi). It also indirectly contributed to the construction of the Akjoujt-Nouakchott road for the evacuation of copper, through IFC involvement in SOMIMA, the copper mining society. The Bank Group felt that the relatively poor state of infrastructure at independence justified these investments in the sector. However, in the mid-70's, a disagreement arose between the Bank and the government on the construction of the east-west Highway. To link the extreme east with the west, the Bank advocated gradual improvement of a road over the southern route, a longer distance to Nema, the capital of the eastern region, than the central alignment, but closer to the agriculturally produc- tive and densely populated Senegal Valley. The government preferred the more direct central alignment, which in its mind would better serve the needs of pockets of population scattered throughout the central region, more drama- tically improve the connection between the capital city and the isolated extreme east and therefore, strengthen political unity within the country. A number of external donors, including the Kuwait Fund (KF), the Saudi Fund (SF), and the Arab Fund for Economic and Social Development (AF), supported the Government's point of view and offered to finance construction of the Nouakchott-Kiffa-Nema road and to contribute toward the cost of its future maintenance. On that basis but without the Associations financing, the government decided to go ahead with the construction. With the recent  - 6 - deterioration in the public finance situation, however, the government has to recognize that it needs to plan more carefully the future investments in this sector, taking into account its technical and financial capacity for maintenance and its economic potential. The government agreed, therefore, to provide the Association with the draft Five Year Development Plan for com- ments, and would exchange views with the Association on the investment alloca- tions for the road sector (Section 3.06 of the draft Development Credit Agreement). In addition, during the proposed project's implementation period, for any road construction investment exceeding an aggregate amount of two million dollars equivalent, the government gave assurances that it would (a) carry out a study to evaluate the economic priority of such project, and (b) give the Association a reasonable opportunity to comment on such study (Sec- tion 4.04 of the draft Development Credit Agreement). Road Maintenance 19. Bank Group involvement in highway maintenance started with a maintenance study financed under the First Highway Project (Cr. 69-MAU). Under the Second Highway Project (Cr. 159-MAU, FY69), the Equipment Division of the Directorate of Public Works was reorganized, and new procedures were introduced. Four brigades for road maintenance and improvement were also established. The brigades carried out maintenance and improvement of unpaved roads as well routine maintenance of paved roads. Office buildings, including a training center and a central workshop complex, were constructed and outfitted. New maintenance equipment was purchased. By project comple- tion 80 percent (400 km) of the road improvement as well as 60 percent (1,800 km) of the annual routine maintenance targets had been achieved. Training for senior level personnel was successful, but only about 40 per- cent of junior personnel were trained. In addition to insufficient training, the Project Performance Audit Report of February 2, 1978 1/ identified two other factors as hampering project objectives: (i) establishment of too many brigades at once to carry out operations when there were shortages of quali- fied personnel and local funds; and (ii) diversion of project equipment to unscheduled activities. 20. Under the Third Highway Project (Cr. 519-MAU, FY75), which inter alia included 365 km of betterment works, the Government and the Associa- tion sought to address some of these issues. The project concentrated on strengthening two maintenance brigades, which required fewer managers and trained personnel; a bilingual training expert was recruited and materials for teaching provided; and additional maintenance equipment was financed. Unfortunately, a number of unforseeable political and economic difficulties hindered achievement of project objectives. War, successive droughts, accelerated Mauritanization of the civil service without regard to qualifica- tion, paralysis of economic activity and a rapid deterioration of public finance, all adversely affected project implementation. As the military situation deteriorated, equipment, fuel as well as personnel were diverted to 1/ Based on PCR, July 5, 1977.  - 7 - the war effort, and training was impeded due to lack of trainees. Ultimately, fear of Polisario attacks decreased the capacity of the maintenance brigade in the north. Force account work of the magnitude envisioned at appraisal proved beyond the capacity of the Government to implement under these circumstances, and delays in project execution led to a substantial cost overrun. 21. In 1979 the Credit Agreement was amended to reduce the scope of the project from 365 to 215 km of road improvements. To alleviate the pressure on the already constrained Government budget, IDA and KF (the cofinancer, and one of the major contributors to Mauritania's road sector) agreed to finance 100 percent of project costs. At the same time, the Government made efforts to improve management, namely by: (i) appointing a Mauritanian project manager to work exclusively on the project; (ii) providing the new management unit with an accountant; and (iii) establishing, by presidential decree, a simplified procurement system wherein contracts were reviewed by a small committee consisting of the president of the Tender Board and representatives of the Ministries of Equipment, and Economy and Finance, and were approved and signed on behalf of the Government by the Minister of Economy and Finance. In spite of these efforts, due to the persistence of problems outlined in para. 20, project accomplishments were limited. Although earth works were implemented on 215 km, no drainage structures were provided due to delays and lack of funds. Work on these road sections, which are now being damaged by flash flooding in the rainy season and face certain destruction if they remain unprotected, would be completed under the proposed project. 22. Implementation and maintenance problems encountered during and after construction of the first sections of the Nouakchott-Nema road, convinced the Mauritanian government and the external donors financing the project of the need to reconsider their approach to the road sector. The first Nouakchott- Boutilimit section began to crack soon after completion due to poorly chosen construction materials and poor execution. The Boutilimit-Aleg section needs resealing since the double bituminous surface treatment began to deteriorate soon after construction. Cracks also appeared on the Aleg-Kiffa section and shoulders started to disintegrate. Sections of the Kiffa-Timbedera road, where work began in late 1979, were washed out by heavy rains in 1980. This series of failures provided further evidence to the Mauritanian Government, and persuaded external donors, that absolute priority was to be given to improving the country's institutional and financial capacity for implementing works and maintaining the country's priority roads. The Government has since begun to take steps to remedy the situation (para. 24). Moreover, the proposed Fourth Highway Project would study the priority road network to be maintained, would determine the level of investment compatible with resource availability, and identify appropriate construction materials and techniques adapted to the local environment. Organization 23. The Directorate of Infrastructure (DI) of the Ministry of Equipment, Transport, and Telecommunications (MET) was in principle in charge of planning, construction and maintenance of the road network, airports, ports, and water- ways. DI included a Service of Public Works (SPW), in charge of roads and airports, and a Service of Ports and Railways. SPW included a Division of  - 8 - Ronds and Airports (DRA), a Division of Equipment, and thirteen Regional subdivisions corresponding to the twelve administrative regions plus Nouakchott. Aside from poorly trained personnel, this organizational structure did not encourage proper road maintenance or development. The institutions lacked adequate focus and attempted to perform too many tasks for their limited resources. For example DRA duplicated the work of a regional aviation agency on airports, and did not devote adequate attention to road and equipment maintenance, or to the control of road works carried out by contractors. 24. In preparation for the proposed Fourth Highway project, the Govern- ment has made an important decision to utilize private contractors rather than force account to execute all periodic maintenance and improvement works. It also carried out a review of road maintenance administration in February 1980. After discussion with the Association, it was concluded that preceding the establishment of a more permanent improved road maintenance structure, to be determined by further studies included under the proposed project (para. 28), two units should be created to help improve maintenance efficiency: (i) a central unit with clear authority to plan road investments and effectively control the execution of works carried out by contractors, and (ii) a road maintenance and equipment unit to administer routine road maintenance opera- tions carried out by regional subdivisions and small force account brigades. These units were established by decree dated February 5, 1982 which reor- ganized the Ministry (now named the Ministry of Equipment, Transport and Telecommunications (METT)). Under this reorganization DI has become the Public Works Department (PWD). The Government has agreed to maintain these units (Section 4.02 of the draft Development Credit Agreement) as well as simple procurement procedures used under the Third Highway Project. Finance 25. The present size of the Mauritanian road network already exceeds the capacity of the maintenance system. The Government has regularly in- creased its road maintenance budget from US$0.5 million equivalent in 1969 to about US$2.2 million equivalent in 1979. However, it was estimated by consultants in 1976 that the Government would need to spend about US$20 million p.a., or about 10 percent of its budget, to maintain its entire road network to an optimum standard following completion of the Nouakchott-Nema road. While this estimate remains to be verified and updated, it is clear that provision of an adequate maintenance budget would be a major drain on available domestic resources. The maintenance study to be carried out under the project would enable the Government and foreign donors to jointly deter- mine an economically viable maintenance program to be implemented on the basis of a realistic assessment of available domestic and foreign resources. The Government provided assurances during negotiations that, pending review of the maintenance study, the Government would provide the resources required for an efficient operation of the new road planning and road maintenance units (para. 24) and for maintenance of the roads to be improved under the project (Section 4.03 of the draft Development Credit Agreement).  - 9 - PART IV - THE PROJECT 26. The proposed project was identified in Autumn 1979 through a series of discussions with the Mauritanian Government and the Kuwait Fund, in their respective countries and in Washington. The project was prepared and appraised during a mission to Mauritania in January 1980. Coordination meetings were held in Kuwait in February 1981 and in Washington, D.C. December 1982, with the participation of representatives from the Mauritanian Government, KF, AF, and IDA. Negotiations were held in Washington on December 15, 1981 following final agreement on the project scope and condi- tions. The Mauritanian delegation was led by Mr. M'Rabih Rabou Ould Cheikh Bouneina, Director of Projects of the Ministry of Economy and Finance. Project Objectives and Description 27. The objectives of the proposed Fourth Highway Project are: (i) to assist the Government in formulating a maintenance policy which takes into account its financial and institutional limitations; (ii) to prepare a follow-up project, which would contribute to maintenance of paved and engineered earth roads; and (iii) to complete and protect betterment works carried out under the Third Highway Project. The project would include the following elements: (a) road maintenance studies including: definition of the network to be maintained, maintenance operations, methods, and organization, research of suitable maintenance materials, staff training, financ- ing, and proposals for broader maintenance and investment priorities in the medium term; (b) studies for rehabilitation and reinforcement of the Nouakchott- Rosso (203 km) and Nouakchott-Akjoujt (256 km) paved roads; (c) completion of works started under the Third Highway Project including: (i) detailed engineering and preparation of bidding documents for the completion of earthworks and construction of drainage structures and studies of bridges on the Boghe-Kaedi (100 km) and Atar-Oued Seguelil (45 km) roads improved under that project; and (ii) completion of earth works and construction of the drainage structures themselves and their approaches, excluding bridges; and (d) studies for reinforcement of the recently paved Nouakchott-Kiffa- Nema road (1,150 km), and the execution of urgent maintenance works on this road. 28. Road Maintenance Studies. The main purpose of these studies would be to assist the Government's efforts to improve its sectoral administrative services. In addition to determining a critical road network to be main- tained, the studies would propose a streamlined and more appropriate regional road maintenance organization than that which exists. They would also help Mauritania determine the needs of this organization in terms of personnel,  - 10 - training and institutions, in light of the country's high illiteracy rate and its dual ethnic and linguistic system. Because Mauritania's sandy, saline, and clay soils provide poor road building materials, the maintenance studies would also investigate material resources. Appropriate techniques for increas- ing efficiency of maintenance operations would also be explored. Terms of reference for the studies have been discussed and agreed upon by KF, IDA and the government. 29. Studies for Rehabilitation and Reinforcement of Nouakchott-Rosso and Nouakchott-Akjoujt Paved Roads. These two lane paved roads, constructed respectively in 1970 and 1971, constitute the most important links of the major south-north road (from Rosso on the banks of the Senegal River in the south, via Nouakchott, Akjoujt, Atar, to the Algerian border in the north) and are the most heavily trafficked in the country. As a consequence of poor maintenance, some sections of the Nouakchott-Akjoujt road require rehabilita- tion and/or reinforcement, while most of the Nouakchott-Rosso road requires reinforcement. The project would include a feasibility study to determine an economically justifiable level of improvement on these roads, followed by final engineering and bidding documents for the improvement works. Terms of reference for the studies were discussed and agreed upon at negotiations. 30. Completion of Earthworks and Drainage Structures. Most of the betterment works carried out on the 215 km of the Third Highway Project are facing destruction by flash flooding during the rainy season because funds ran out under the project before the appropriate drainage structures could be built, and because earthwork and wearing courses on the Atar-Oued Sequelil road were not properly executed. The Boghe-Kaedi road in the Senegal River valley, where most drainage structures are needed and two bridges may be required, is pdrticulariy vulnerable. To a lesser extent, the Atar-Oued Seguelil road in the North is also vulnerable to flooding. Consultants prepared a standard design for drainage structures under the Third Highway Project. Engineering and bidding documents for the drainage structures and necessary earthworks would be prepared under the proposed project. The proposed project would provide for the construction of these works on the Boghe-Kaedi and Atar-Oued Seguelil roads. The project would also provide for an engineering study for the construction of two bridges on the Boghe-Kaedi road where, presently, bypasses permitting through-traffic exist. The terms of reference for the studies of the Atar-Oued Seguelil road were discussed and agreed upon at negotiations. 31. Nouakchott-Kiffa-Nema Road. The first two sections of this road (Nouakchott-Kiffa (600 km) and Kiffa-Timbedera (441 km)), completed in 1978 and 1981 respectively) are already breaking up. The proposed project would provide for feasibility studies to determine an economic level of further improvement on this road, followed by engineering and bidding documents for the improvement works which the KF has agreed in principle to finance. The project would also provide for equipment, operating costs and personnel training to carry out urgent maintenance operations on the road for two years. Terms of reference for the studies were drafted in consultation with KF and IDA.  - 11 - Project Cost and Financing 32. Total project cost, net of taxes and duties, is estimated at US$14.3 million equivalent, with local costs of US$2.4 million (17 percent) and foreign costs of US$11.9 million equivalent (83 percent). The Govern- ment has agreed to exempt the project from taxes and duties which are esti- mated at US$2.8 million equivalent (detailed cost estimates are in Annex IV). IDA would provide a credit of SDR 3.4 million (US$4.0 million equi- valent), which would finance the preinvestment studies of the Nouakchott-Rosso (203 km) and Nouakchott-Akjoujt (256 km) roads, as well as engineering and supervision, and civil works on the Atar-Oued-Seguelil road. KF would provide a credit of US$5.1 million which would finance the preinvestment studies of the Nouakchott-Kiffa-Nema road (1,150 km) and its maintenance including equipment and, operating costs for two years together with spare parts and training. AF and the Government would provide US$5.2 million which would finance engineering studies, supervision and civil works on the Boghe-Kaedi road. The balance of the AF loan, after financing the Boghe-Kaedi road component would be used to finance recurrent maintenance costs of the Nouakchott-Nema road. Implementation 33. The Ministry of Equipment, Transport and Telecommunication, through its Public Works Department, will be responsible for the implementation of the project. PWD would be assisted by consultants in planning and executing the engineering studies, and in supervising the construction works executed by contractors. The project would take about four years to complete. The preparation of engineering and bidding documents for drainage structures would be completed within six months, starting from the date of credit effec- tiveness. Road rehabilitation and reinforcement studies would take about a year and a half to complete. Construction works should be executed within about 18 months of the award of contract. Within the framework of the road maintenance studies, IDA would assist the Government in determining the level of budgetary resources it should allocate to road maintenance. Preinvestment studies, under items (b) and (d) of the project description (para. 27), would be carried out in two phases. Feasibility studies would first determine the technical and economic level of improvements to be undertaken and the financing needed for the execution of these improvement works. This phase would be followed by final engineering and bidding documents for those fea- sible improvements assured of financing. To ensure a coherent policy in the sector, a letter of understanding would be signed by KF, AF, and IDA providing for close consultation between these institutions. During negotiations, the Government has given assurance that it would seek IDA's comments on all other studies included in the project. Procurement 34. Consultants for the studies of the Nouakchott-Rosso and Nouakchott- Akjoujt roads, and for improvement on the Atar-Oued Seguelil road would be selected on the basis of experience and capability, and according to terms  - 12 - and conditions satisfactory to IDA. Procurement of equipment and selection of consultants for the preinvestment studies of the Nouakchott-Kiffa-Nema road would follow KF procedures. Consultants and contractors for engineering studies and civil works of the Boghe-Kaedi road would be selected according to AF procedures. The Government has agreed that it would retain the consultants selected for the studies of structures, to assist PWD in supervising the execution of the construction of drainage structures and their approaches on the Atar-Oued Seguelil road. This arrangement would allow rapid execution of the urgent works. The works on the Atar-Oued Seguelil road would be let on the basis of local competitive bidding procedures satisfactory to IDA (Schedule 3A of draft Development Credit Agreement). Qualified local con- tractors (foreign and domestic) are available. A contract to be executed in two consecutive phases (feasibility and final engineering) would be pre- pared between the Government and consultants for preinvestment studies of the Nouakchott-Rosso, Nouakchott-Akjoujt and Nouakchott-Kiffa-Nema roads. The second phase will be notified to consultants only after an agreement has been reached between the Government, KF and IDA on the level of improvements to be carried out. A contract to be executed in two phases will also be established between the Government and consultants for the improvement of the Atar-Oued Seguelil road: the engineering and preparation of bidding documents phase and the supervision of works phase. The latter would be notified to consultants only after an agreement has been reached between the Government and IDA on these works. Disbursements 35. The proposed IDA Credit of US$4.0 million would be disbursed (Dis- bursement table, AnnexIV) on the following basis: (a) 100 percent of the cost of consultant services for engineering studies for the Nouakchott-Kosso and Nouakchott-Akjoujt roads; and for engineering and supervision of construction of betterment works on the Atar-Oued Seguelil roads; and (b) 100 percent of total construction expenditures, net of taxes and duties, for execution of works on the Atar-Oued Seguelil roads. All disbursements would be fully documented. Economic Justification 36. Studies. The project includes a substantial studies component to help improve the overall planning and organization of highway maintenance in Mauritania, as well as to determine the most economical method for the reinforcement of the country's main north-south paved road (Nouakchott-Rosso and Nouakchott-Akjoujt). Their eventual rehabilitation and reinforcement is expected to be justified because these roads were constructed 8-10 years ago and not properly maintained thereafter, and because of the relatively high level of traffic which they carry (300 and 100 vpd respectively in 1978). 37. Nouakchott-Nema road. Emergency maintenance works on paved sections of the road are essential to prevent its rapid deterioration. The justifica- tion of further reinforcement will depend on the extent of works required and expected traffic levels. The proposed project finances only the feasibility study and final engineering of these reinforcement works.  - 13 - 38. Completion of earthworks and drainage structures. The completion of earthworks and drainage structures on the Boghe-Kaedi and Atar-Oued Seguelil roads would complete the improvement works begun under the Third Highway Project and assure that these roads are usable and that the benefits envisaged at appraisal are fully realized. The investment will insure that the roads last their full economic life. In addition construction would be carried out only after engineering work has determined the least cost solution to the works. These two roads play an important economic role: (a) The Atar-Oued Seguelil road forms part of the only land link (via road/rail) between the capital city of Nouakchott on the one hand, and Nouadhibou (Mauritania's second largest city) and Zouerate whose iron ore mines account for 20 percent of GDP on the other. The road carried 40 vpd in 1972 and traffic does not appear to have grown since then based on available information. The cost of finishing the earthworks and wearing courses and providing drainage structures needed to complete the road is less than of the cost of complete reconstruction, and is expected to extend the life of the wearing course of the road from two to about ten years, and that of the road substructures until upgrading is required. (b) The Boghe-Kaedi road serves part of the Senegal River Valley, the most agriculturally productive area in Mauritania. Several agricultural development projects are planned or underway in the immediate vicinity of this road. The road carried 48 vpd in 1981, of which 52% were heavy vehi- clcs. The benefits of completing the road consist of extending the life of the wearing course from two to about eight years and that of the substructure until upgrading is required. Completion of the road, however, does not include construction of two major bridges, the cost of which is not known. The project provides only for engineering studies of these bridges. The completed road will nevertheless permit through-traffic between Boghe and Kaedi since dry-land detours are possible away from the bridge sites during the rainy season (3 months). Risks 39. In view of the Mauritanian Government's poor performance in imple- menting earlier highway maintenance projects, there is a risk that this project will also experience undue delays in execution and subsequent cost overruns. However, safeguards have been incorporated into the project to limit this risk. The betterment program has been kept manageable, and contractors will be utilized to carry it out instead of public works brigades. In addition, civil works contracts will be awarded under stream- lined procurement procedures.  - 14 - PART V - LEGAL INSTRUMENTS AND AUTHORITY 40. The draft Development Credit Agreement between the Islamic Republic of Mauritania and the Association, and the Recommendation of the Committee provided for in Article V, Section 1 (d) of the Articles of Agreement of the Association, are being distributed to the Executive Directors separately. Special features of the draft Development Credit Agreement are referred to in the text and listed in Section III of Annex III. Additional conditions of effectiveness would be cross effectiveness of the IDA Credit with the KF and AF loans (Section 6.01 of the draft Development Credit Agreement). 41. I am satisfied that the proposed Development Credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 42. I recommend that the Executive Directors approve the proposed Development Credit. A.W. Clausen President Washington, D.C. March 25, 1982  - 15 - Annoex I Page 1 of 5 pages TABLE 3A HAURITANIA - SOCIAL INDICATORS DATA SHEET MAOURITANIA REFERENCE GROUPS (WIGRTED AVRACES LAND AREA (THOUSAND SM. KM.) - HOST RECENT ESTIKATE)- TOTAL 1030.7 MOST RECENT LOW INCOME MIDDE I7NCOME AGRICULTURAL 394.5 1960 /b 1970 /b ESTIHATE lb AFRICA SOUTH OF SAHARA AFRICA SOUTH OF SAHARA GNP PER CAPITA (USS) 90.0 190.0 320,0 238.3 794.2 ENERGY CONSUIDPTION PER CAPITA (KILOGRAMS Of COAL EQUIVALENT) 17.5 162.7 184.6 70.5 707.5 POPULATION AND VITAL STATISTICS POPULATION, MID-YEAR (THOUSANDS) 969.5 1244.5 1588,0 URBAN POPULATION (?ERCENT OF TOTAL) 3.4 12.8 23.0 17.5 27.7 POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILLIONS) 2.9 STATIONARY POPULATION (MILLIONS) 9.0 YEAR STATIONARY POPULATION IS REACHED 2135 POPULATION DENSITY PER SQ. KM. 0.9 1.2 1.5 27.7 55.D PER SQ. KM. AGRICULTURAL LAND 2.4 3.1 3.9 73.7 130.7 POPULATION AGE STRUCTURE (PERCENT) 0-14 YRS. 44.0 45.3 45,8 44.8 46.0 15-64 YRS. 53.3 52.0 51.5 52.4 51.2 65 YRS. AND ABOVE 2.7 2.7 2.7 2.9 2.8 POPULATION GROWTH RATE (PERCENT) TOTAL 2.2 2.5 2.7 2.6 2.8 URBAN 16.2 15.8 9.2 6.5 5.1 CRUDE BIRTH KATE (PER THOUSAND) 50.6 49.9 50,2 46.9 46.9 CRUDE DEATH BATE (PER THOUSAND) 26.8 23.8 21.6 19.3 15.8 GROSS REPRODUCTION RATE 3.4 3.4 3.4 3.1 3.2 PAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) .. USERS (PERCENT OF MARRIED WOMEN) .. .. FOOD AND NUTRITION INDEX OF FOOD PRODUCTION PER CAPITA (1969-71-100) 107.0 102.0 78S0 89.5 89.9 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 82.0 83.0 86.0 90.2 92.3 PROTEINS (GRAMS PER DAY) 71.0 73.0 72.0 52.7 52.8 OF WHICH ANIMAL AND PULSE 45.0 48.0 44.0 17.8 16.1 CHILD (AGES 1-4) MORTALITY LATE 41.0 34.7 29.3 27.3 20.2 HEALTH LIFE EXPECTANCY AT BIRTH (YEARS) 37.2 40.4 43.0 45.8 50.8 INFANT MORTALITY RATE (PER THOUSAND) lB6.0Ol .. ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. 17.0 ,, 23.9 27.4 URBAN .. 9S,0 ,, 55.0 74.3 RURAL .. 10.0 ,. 18.5 12.6 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. .. .. 26.2 URBAN .. .. .. 63.5 RURAL .. .. .. 20.3 POPULATION PER PHYSICIAN 40396.3 18301.5 15161.6 31911.8 13844.1 POPULATION PER NURSING PERSON 7324.0/d,. 4592.2 3426.9 3674.9 2898.6 POPULATION PER HOSPITAL BED TOTAL 5473.0/d f 2963.1/f 2754.1 1238.8 1028.4 URBAN 549.0 714.777 1386.0 272.8 423.0 RURAL 7995 .0 550S.277 3913.6 1745.2 3543.2 ADMISSIONS PER HOSPITAL BED .. .. HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL .. .. URBAN RURAL . .. AVERAGE NUMHER OF PERSONS PER ROOM TOTAL URBAN ., RUR.AL . . ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL .. .. URBAN .. .. RURAL .. ..  _ 16 - Annex I TABLE 3A Page 2 of 5 pages HAURITANIA - SOCIAL INDICATORS DATA SHEET MAURITANIA REFERENCE GROUPS (WEIGHTED AV'ERAGES - MOST RECENT ESTIMATE)- HDST RECENT LOW INCOME MIDDLE INCOME 1960 /b 1970 /b ESTIMATE /b AFRICA SOUTH OF SAHARA AFRICA SOUTH OF SAHARA EDUCATION ADJUSTED ENROLLMENT RATIOS PRIMARY: TOTAL 8.0 14.0 26.0 56.4 73.7 MALE 13.0 20.0 34.0 70.7 96.8 FEKALE 3.0 8.0 17.0 50.1 79.0 SECONDARY: TOTAL 0.4 2.0 5.0 10.0 16.2 MALE 1.0 3.0 9.0 13.6 25.3 FEMALE 0.04 0.4 1.0 6.6 14.8 VOCATIONAL ENROL. (I OF SECONDARY) 7.7 12.5 *- 8.0 5.3 PUPIL-TEACHER RATIO PRIMARY 20.0 24.0 41.0 46.5 36.2 SECONDARY 17.0 23.0 .. 25.5 23.6 ADULT LITERACY RATE (PERCENT) 5.0 10.0 17.4 25.5 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 0.4 3.3 .. 2.9 32.3 RADIO RECEIVERS PER THOUSAND POPULATION 12.4 44.2 65.1 32.8 69.0 TV RECEIVERS PER THOUSAND POPULATION .. .. .. 1.9 6.0 NEWSPAPER (DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION .. .. .. 2.8 20.2 CINEMA ANNUAL ATTENDANCE PER CAPITA .. .. 0.3 1.2 0.7 LABOR FORCE TOTAL LABOR FORCE (THOUSANDS) 299.3 371.0 459.4 FEMALE (PERCENT) 3.8 4.1 4.3 34.1 36.7 AGRICULTURE (PERCENT) 91.2 88.0 85.4 80.0 56.6 INDUSTRY (PERCENT) 2.9 4.0 4.9 8.6 17.5 PARTICIPATION RATE (PERCENT) TOTAL 30.9 29.8 28.9 41.7 37.2 MALE 59.8 57.8 56.0 54.3 47.1 FEMALE 2.3 2.4 2.4 29.2 27.5 ECONOMIC DEPENDENCY KATIO 1.5 1.6 1.7 1.2 1.3 INCOME DISTRIBUTION PERCENT OF PRIVATE INCOHE RECEIVED BY HIGHEST 5 PERCeNT OF HOUSE4OLDS .. .. HIGHEST 20 PERCENT OF HOUSEHOLDS .. .. LOWEST 20 PERCENT OF HOUSEHOLDS .. .. LOWEST 40 PERCENT OF HOUSEHOLDS .. .. POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCCHE LEVEL (USS PER CAPITA) URBAN .. .. .. 136.0 381.2 RURAL .. .. 110.0 84.5 156.2 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. 330.0 99.1 334.3 RURAL .. .. 120.0 61.2 137.6 ESTIATED POPULATION BELOW ABSOWTE POVERTY INCOME LEVEL (PERCENT) URBAN .. .. .. 39.7 RURAL .. .. .. 68.8 Not available Not applicable. NOTES /a The group averages for each indicator are population-veighted arithmetic means. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1,9 and 1971; and for Most Recent Esti.te, between 1976 and 1979. Revised CNP per carita 1C 9: S3O0. /c 1960-65; /d 1962; /e Government Personnel only; /f Government hospital establijumeets only. May. 1981  -17 - Annex I Page 3 of 5 pages DEFINITIONS OP SOCIAL It9ICAT0RS Motes Although rho data ae -at fro ..o.......gen.rally ludgad rhoe.t au rtaissd relIble, coahculd al. us -o.o rh., obey .y no .u ita-- eacianall coprbeho-i.lc f toadzdOfIiin and onupus upad by differen couties in uleo rho" "Ira Th -aa r. rs-- tho1le. . usful to OaceLb o Ior Io mgitude, Iodiati treds and h.-a*-i.. certin maJor diff .-- reenc- uroin Tin roforano. gops r I I o h' sas county grou.pIof oh. uho country and I) a - ...ntry group ..t . aoaha- higher a--oag I....e itso rho cocty grop of nba sbjsot ounory (sr.pn fo Capuga Surplu, Oil Eoooar gop ohere ''iiddla 1oo. Moroh fri-s sod hi ddi Toso, ciceco,:: haI a fstne -aJoiny of rho ronriss to a group hasdata 'for rhao todir-ror. iicshaoosag , outre o-t the ldi-aot d-oda or . rbeslsbclcry of do- sod is no .nifo.-, r-uior mus bato ssI nnnn -orgse of one indicato to u-uh- - hea. erargs. Ar Oly -ef..l crlO-paninrIr h 1 LAND6 AREA (thousan d sq.km.) P.p2-atfPo H. dapn. le~Sd rua r -r,un o-a - Puputac- mos) Total - ToI. taOaufac Iroa -cpr clng lond orsad i.lond eaeaIrbn dn ruro 1) d Imi0. by he, epcorue- uabeo fi ositl ad E.iulual-Ltim-ec ogI uluf osuedtnooiycpeasoy00iaI 1phlIandIPl priao g ol n special coed hospital sodo- for -toPs., pa -r-re cod kitchen g-edsn.o. o i fullon; 1979 daa hab~it -iraunreor . opc)areoi ibs psrsao-enr loan tid ry at toas one phyniria E-bhliohoetsporj -geitrra out- tNP ff0 CAPITA PIS M prrcr atutsa urermre.pue,rl dial raro are cc Incldad ~- ol ho-pri-e, hoa.o.n irriuds hea,'lth oclatod by sen onetio Ibhd sWol an ols(97-9ot), 1960, an-sus coarnparna.e.n -y stffed h,y a phya, s (butb 1970, sod 1979 data ad Oral asioao , ue, ebOite er. .....fe .i-pcit arns iNERt! CONiSUMPTION PtR ocAITc - -..u.I rutenpri-r of r-sschtl-" e "rg (oa rust purposes urbar nospcral lo-Iude WHO.I rr eea hospitls.I sod ltgntrn, petrloun,Irnrigs n yr-, ouclan tId g.orh.rmal dt- and ruaI oprl oa rrnlhsytl n eus n aanr rrre)inicgteocrleunerpscaia19, 1970, sod 1979 Sroe per Ira optl at IoIusdcIyudetca- dois. odte -n e Idoriral tad - T.rs1 u.hsr of adeiisecun root -tahorge from bespirals dintdsd by rhe.uebs of heda. POPIITATIIO gill VITAL STATISTICi Total Papolation. Mid-Tsa (rho...mnda) - As of July 1: i960, 1970, and 1979 dIIUtN i 1. ..d.... .h..h,, 1 1 Irbao onulaton lesusni o notel - Satc ci ub,o cc toalpoultin A houshold crir -fagop of hdniolsco shoe Inutbig qoatsts sang .. notrles: 1960, 1970, and 199 data,tehusoofrsttoia.upae Ponalion Pooacione.. Artosabeo resneorrosnt.uha.ad rual naas o Peojaio p-rmest fan-- sraity -ans ucpttes of these lsas su- nc-pe ponna to ieapY.npa inbioasn 0m ronr'sprripttoms uc.hrierpot Iaon f d_alli.a.. trl.uho n oa leve, and f-1al lifs usrnysaittgo 77 .5 psr. Th.as Cnetroa olloent lsirt nty rr "lrgqurs a teofor f-nil iry tans ala on thrs leesseoig el I fnoa,ura,sd rurl dosil ing sporoap f-trninpsooodtng. to .o.n lsoad ot f eelp plann.ingP... pefe o.. uob ...otry is th.n ossigndoeo tastn=retato EDUCtait t ATION and f-rtilioy Itreds for pro) e-ion pur Isa.Adluanad Inolnr uin. stationay ponulstioe -laIa ttaio...rY populato thar Isn groethsoaPrimary sohool - ool a. aod fem1.rusrta. al and fensl tho birth rate is squah no ionth death rate anda ia h assourt o-srllsto al: L.agai ar rha prImary leelo.pronngS. of repoti-a at os oonatat This Is,htee onysnr anlrpso1 fnieo primary erhoi-ase populsetone; o. re Ly ircdas rhild-stgad 6-I abs ralatamain Isnl of rit oa reproanrio tot, onsah ststata ..an hu Iadj...td for diffe.a leghs ofpimary eduarinn; for of set reparas nsai anatly. The anoniloosy ppu istio ainsen cotrtusnhunatl -drtioenolmn sa ed 100 paron to nba perY 00,adro -ar of delILam of fs-ni fry tans to raplor.- IS-odayshol rns, ale aud fasslo - Coapuradatahone;ss-odary Tea sttionar PPoouLao.La is rscbsd - Th. pea ni.s tatiooary populsoto Potds s.rlnotnn.ortihrmtngiaurtnsfePpt elan h..s- hoo reahd. usually of 12 ro 17 pears ofa3s romspndnrscure sr g.n.a.. Poeu3.tion Density srlodsd. Pon es. ko. - stld-psu populriun Psr square kilossas (lit baots.... n f Ictolanller(percent of .....ndey) - Onratino..l tre-i-i..o rota1 ares; 19601, lf and 1979 dana.ildnaboa,Iusrl,n Ipbs pog-am nhrh oporno indapend- Per s. ko. asrtr tlrura land - Coputed as bons foL gtriua lsod -ol ra eatsn rfI Yespintttoa only;, 1960, 1970 sod 1978 daia. Putdt, ro natto - r Ir.ad ...oondI,, -T Ttalsuet nodt Ponuario As itnatus tercut)- CIne t0-l4 yasts)., -kittS-agS (15- prmrIn sodr eesdnddb ubr f L=rbt in tha 60rar)ad ra-i-d (65 yeaoaandonr cs. per-tags. Ifsud-y.oerynpo- ....e.Podiaieee aro;16,1970. a 97 as Adult Ilt=to rate (oret L-iitorstoaduo- (able to snd snd e-Lt.) huuoloinoro Pans ... (o et) - tota - dA-as gtowth o Ieof totl1 mid- Iaperoantaga of t...l adult ppltlnoSd 15 pears snd onar. pYr poultIn fori90-A0, 1960-70,Aed 197..79. Poo.lato Irmibeas _tsroot - uban - Aoauul arco-h Ise f urban poi- CONSUMPTfIONt latios fo 195-Mi.1960-70. and 197D-79. Pas...nano Cars fee obou...od onoulation)- Paaog Irt -opnisa no Crude girth goeta housand) - AonuI Lion bilerb Pan thouaad of -i-srassatilg sa obanh, sight poros;ecbAs.bu..s,bo.s n populatIon; 1960. 1970, and 1979 data. ai -nryneinln .Crude Death Rats0(net thousadl) - Annua As-tb per ohoueau.ds of eid-year Radio taaoer (oar thousand'P" innlttn - All nppsoftnrtneI oe dia popolation 90 17,ad 1979 hots b ..drt nr geealpblic per thousnd of Popolatton; eurldeeon Irs gtnoLao Rr- A-e,ag ottbar of daugbtnrsI -na will bent in ltoanedroran.. to ioorieed in pears hbnraia. o f ai be Ieeml apodrn- p.nio if abs onpetione ... orso age-epoif it f o- Iecwst fs dt o senpt _ay rotharomatbla etot tility na a;usaly fIn--yan avrae sodleg to 1960. 1970, and 1979. -esrsn-isfoboIiebhd lios-iog. Psele Pinoin - Ateonra.Aaau1 (thousads) - Asol abar of ..ocePsoes It Rtlver (pe husn orulttni-' rec tyst foe broadcast to PamlinPlaoaas-n.es (racantIf marriad so P.`-ennog of seriad- it conrisad In psarn obsargina Io f TV Ieos enL. taffant. ronIf ohild-boonlg R35 (15-46 y-ars ebo usa binth-hot-ol denio.. to !NRM0.l1laion lonthousaod --eluI,o S- liow na au.9 nit- al mried evn i se g op.o Ptio o..1 f dollyi anea t osrseesppa' - dof1 todasnprtr publirottio, donnia prim-ily toI . reodingt g -eaes fIt is ronside...d POOR AND0 NM ITION onhb daily" if in ept at least fou t_ossenc loden of Pn rduto soCso 1969-71-1l00 - Inde of pen o.pie annua.I Ciase Ausinl A~trodanrs net Canine set Tat - Ra..ad on rho nmbor of proutoonof llfon ooitas.Prducio ..'udI so ad I fsd ad tiohon. add durIng tha yso-, itluding admsions. no drti-in ci. .a Pa -0oldrps basia. C.-odipnIna Iro pt p"iar gauds a.nscn odksebile units., inatsa of sagat) etob 000 edibls a conainnuriens i.g. roffo ood tea In aldad). Aggregate p-nduuioo of -.ib countrYit hatd onLAROR PURCE Ioinlantg rdos pice nights; 1961-65. 1970, e 1979 dat.-Tota.l Labor oror (thousand) - tosainlYatiopsneiaLudu Pen unin sunlo o ralnto (ea.rs- of -eocasni Coptefrmad ftfonoss and -ooplod bu seldn osnn tdens L tc.= sosrgysqutslenr of nt fond suplias ansilbl,i ino-uny par capita rosigpopulation of al1aes Dsfdiutio.. in noriouco -triesat ps day Av=lob supies copris d sic prductio, imPort, lass not ooegtarbl.j 1960, 1970 aod 1979 dais. ..Pot. and obas in et-ob. Rae suppliesecld anml Isd ads, Ps1l (n-r-nn - ..lelao ...r so protsntg of total lobon forro. q Iniia sd in fod poesia,sd losses (rdenhntnIaue ddaniuitra onoot)-`Lborfoocs in f-nIng, forestry. banning sad ant. n siIIted by tAO batod .n pbysiological c-edt for norma ani- f 'bLg s erowag o.f total lahor forts.; 1960, 1970 and 1979 dana. viopso hal:tb . consideig soniros-ta taaanra ;- ,bod ihs g 1n4etry fonpett- L- bo Ifret tig rntuto,sofannin and an dtrbu~tino pupoistio, sod'alwn 10prot for asst anad slotior wte adf go eP'.-,ta o,f to'tal labo fooci16, .;h,bol lni;, 196E1l-65, 1970. n I1977 dto 1970 sod 1979 data. Pa aitu anl,o nnni (gem ont day) - Pronain co Io f Potcait -potianotRte)enati oil alo. M I fn s-Patciaino eat soPPly of food Perday. Net supply of food Is deinad as shoe,Ra srTHlntytsnsaerompuId asttotal, aIs. end fel labor forna a qnitnsIfo al ounet a-fbIiead by USDA pro-ids for miotim. ooet.gn. of tonal, ala and f-al population of tl gsrepits slloano 'of 60gi of nna- po1 i pee day sA" 20tgras of oimal -d 1960.970 o 99 dana. Thanae- as onIWcpatf pttrnec paaptn,of ehiob 10 gram should be .- anmlProtin. Tht.c uead- rnloigaetnt-nntut ofthnb popultin se bg im ten.d arda sot lowa than tho- of 75 gRem of toca1 Pronain and 23 grss of for eeIete.snfo earion .n.. o notma poteio s ananeog too obe weld,. proposd by PAn to the Third Ratio -.Rati of ppielnadar 15 sod 65 sod -e ifoold Pand Rarvep; 1961-65, 1970 sad 197dn.to b oa lbrit ti'e frmenI l and ulsos in gram Pan dsp; 196165, 1970 and 1977 d.ia. ISCSoite toetriLImM Child sass I-Al fltliorRtt nt huady A-aul daahs Per thooson to P-rustnas of Prois Inca (both in rash and kInd) - )L c.o-d by rirhoIt tries data daniad Peon life fablas; 1960. 1970 and 1979 dat, o5f bosabld. "h Op.. .pI. 0P.-,- UsLT PliflIf5IA-.. -.II ...I if -.., MEr TAXRGT GROUPS "TFig 0a.au at7 tirn ivae Aaoooa fpst fh araao Th. follunia satlns arns apoLsassaua fpno eaa at hitch;190170 a-d 19P9 dat, andshol beltrrndwt ouiou ecni !I-,fena IoLny Rte Pinn thousued - amo1 deaths of infant nodeP Is IO5t Rantid Absout Lponeot Oncoh Laal109 n cnidi- taosobrrs of aePine thousan.d ILn hirtho. Abo- no td rn alrt` ee- n-ei U IaVtha moos l,neit beo nhtb ad miIma gonA o anMan omn f onatoi total. than7 andrurl His- nbnritional ty aqIe- dietpls- tetial I noof 1d tqu Ieoh Iaso satan asob so tht from pno-1ot .. onhlun. pri.4s, sad =utnan n.Ile asmn oain. pvmymn se snn-hr fe atptcpt paNNatage ofrhItne1p-tirt poplaton. 2n0an ura see a" puli personal incmaf Ith counte. Urban 1ev1 is dorind fro ths.ursi1 fomai onotadpsnlonta atarttht 0 t me fro s otssp alee 60th adjuaset for higher rest of lining in urban Irsa gminaasmgwTbd epot l aos of:--1 tho hoa.I rura nees ta mea onltongl Aboluns,, Po Iety Inon Laniiatst re doa hoe onsed a'dispo.rinaaporn of th. dsp in fotching t ha punt' fsmhlp If a than uneds.d-H h. PH lee iatlaie.tooi olessd Projeototo. Rapurne-t Zorght$m-2p.n -Lnioi - Population divided by number of praelin pya- Ray 1981 tesquali Ia s .ndi..l snhan at -nunIllsiy bee.1 tonltoaneotu Paea - Population divide by -abee oif p'eotinia4 malo sa fla. grduats .e.Insas,.. pentol nureo.. and a..esIstt murna  Pag e 14 0o1 5 ges - 18 - XAURITSIA ECowrIC INDICAToRS CROSS NATrONAL PRODUCT IN 1980 I AINIt.er at OF orR ((f nnnamtnt prices) / US$ .n. 1973-76 1977-80 190O ^NP at Market Prices 524.8 100.0 6.0 .- 1.7 iross Domestic Investment 239.9 45.7 2.9 0.3 -18.4 ,rose National Saving 111.0 21.2 Current Account Balance _166.1 - 31.7 . Exports of Goods. llS 226.2 43.1 0.8 o 6.5 Imports of Goods, NFS -402.2 - 76.6 OUTPUT. LABOR FORCE AND PRODUCTIVITY IN 1979 Yalue Added Labor Force V.A. Per Worker USs :1n. Thou. Agriculture 117.5 24.6 392.3 85.4 299.5 28.8 Industry 144.2 30.2 22.5 4.9 6,408.9 Services 215.8 45.2 44.6 9.7 4,838.6 Unallocated Total/Average 477.5 I 100.0 94,039.4 100.0 CENTRAL GOVERIMENT FPIANCE UM Itln. Sof GDP a_ 900 1977-79 Current Receipts 6,133 22.9 24.2 ^urrent Expenditure .8; 144 30.4 Current Surplus -28011 -7.5 -6 Capital Expenditure J -6.0S1 -22.6 -158 Overall Bnlance _9;062 -30.1 External Assistance (net) 6,837 25.5 27.7 '4hEY, CREDIT and PRICES 1973 1980 , 1981 July. 1980 (Million UN outstanding end period) Money and uasi Money 1,882 4,798 6,701 9,201 6,230 Claims on Public Sector - 279 2,159 2,554 3,560 2,159 Claims on Private Sector 2,858 7,304 9,155 10,767 8,912 (Percentages or Index lhers) '!orey and basi Money as % of GDP 16.1 24.1 24.6 3eneral Frice Index (1977 100) 63.4 100.0 129.5 Annual percentage changes in: ,eneral Frice Index 8.7 10.3 10.8 Claims on Public Sector -28.7 295.4 15.6 'laims on Private Sector 54.1 26.5 12.7 te: All conversions to dollare in this table are at the average exchange rate prevailing during the period covered. V Provisional Estimated Iron ore only Including extra-budgetary expenditure  Annex I -19- Page 5 of 5 pages MAwqIITAMA BRADE. PAY4TNS AND CAPITAL YWW RALANCE o0 PAYMUI8 HERCH A1ffIT. EXPOrtS (AVOWE 197PA4W. 127_2 1973 I9e0^ TM * Mln. j (Mi1ion U. $) tports of Goods, NF 1144.7 178.4 226.2 Iron Ore 124Z 7Z Imports of Goods, Nwz -i12.8 Zjj -1402.2 Fish Products '45.J.2.1 Resource Gap (deficit r) - 10.1 -195.3 -174.0 Copper Concentrat. 2.0 1.2 All other cmadit1... 1...i 0.8 Total 173.4 Interest Payments (net) - 2.0 1 14.6 - 19.14 Workers' Remittances - 14.5 - 27.6 - 50.6 Other Factor Payments (net) - 5.1 3.5 - 2.8 Vet Transfers 31.2 120.4 8 Balarce on Current Account - 0.5 13. -6.1 Direct Foreign Investment 10.3 4.4 28.9 E1NAL DE3S. DECSg 31L 198llY Nlet MLT Borrowing Disbursements (11.0) (87.5) (152.5) Us S In. Amortization _ (-2.4) (-32.1) (-17.3) Subtotal 8.6 55.4 135.2 Public Debt, incal guB;=jd= 713.a Capital Grants 8.4 13.6 16.8 ion-Guaranteed Prtrata Debt Other Capital (net) - 14.2 - 1.9 -_ 20.7 Total outstanding and. W.a Other Items n.i.e. - 13.2 - O.8 o increase in Reserves () - 0.7 - 42.8 - 5.9 DENT SEEVIC! RATIO fcr 19tot Gross Reserves (end Year) 44.9 77.2 159.5 Iret Reserves (end year) 7.7 - 43.1 - 57.9 Public Debt, incl. guiamoeQ 13.3. Xton-Guaranteed Prirt Debt Total outsttading and fist-_ 13.3 Fuel and Related Ygaterials 1973 19 70 Imports .. of which: Petroleum 9.9 24.8 143.2 33.2 Exports - - - of which: Petroleum - - - - IBRD/IDA IEDMING ea of Dec_bs 31I 398 RATE OF EXCHANGE 1973 1977 7 ib us $ LS $ 1.00 - 1m 44-54 45.68 45.92 I= Outstanding and Dixhux"& 60.o 45. Undisbursed J49~.. Outstanding tcl_ Undi