Tunisia - Second Urban Transport Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-3809-TUN REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN THE AMOUNT EQUIVALENT TO US$33.0 MILLION TO THE REPUBLIC OF TUNISIA FOR A SECOND URBAN TRANSPORT PROJECT May 7, 1984 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 = Tunisian Dinar (TD) The exchange rate of the Tunisian Dinar is floating. The rate which is used in the Staff Appraisal Report approximates the rate as of December 1983. It is: 1 TD = US$1.45 1 US$ = TDO.69 FISCAL YEAR January 1 - December 31 GLOSSARY OF ACRONYMS CTTU = Urban Transport Unit (Cellule Technique de Transport Urbain) DGPC Highway Department (Direction G4ngrale des Ponts et Chauss6es) MEQ Ministry of Public Works (Ministhre de l'Equipement) MLT Light-Rail System (M4tro Lgger de Tunis) MOTC Ministry of Transport and Communications (Minist6re des Transports et Communications) SNT National Transport Company (Soci6t6 Nationale de Transports) SORETRAS = Regional Transport Company of Sfax (Soci4t4 Rggionale de Transports de Sfax) SRT = Regional Transport Company (Soci6t4 R6gionale de Transports) FOR OFFICIAL USE ONLY REPUBLIC OF TUNISIA SECOND URBAN TRANSPORT PROJECT LOAN AND PROJECT SUMMARY Borrower: Republic of Tunisia Beneficiary: Socigt4 R4gionale de Transports de Sfax (SORETRAS) Amount: US$33.0 million equivalent, including a capitalized front-end fee Terms: 17 years, including 4 years of grace, at the standard variable interest rate Onlending: The Government would onlend US$6.1 million of the Bank loan to SORETRAS on the same terms and conditions as the Bank loan. The Government would bear the foreign exchange risk. Project The proposed project would improve the level of Description: urban transport services in Greater Tunis and Greater Sfax and increase efficiency in supplying these services; strengthen the capacity of sector institutions to manage and plan urban transport systems effectively; and support the development and implementation of a comprehensive urban transport policy. It consists of: primary road improvements in Greater Tunis; provision of improved bus maintenance facilities, bus stops and terminals in Sfax, as well as a management information system for SORETRAS; a pilot national training program for sector personnel; technical assistance; and studies. The project would improve conditions for regional (non-central) travelers in and around Greater Tunis and for SORETRAS' passengers. The main project risk is that sector policy measures may lag behind physical works. This would be addressed through the technical assistance and training components to strengthen sector institutions, as well as a strong Bank supervision effort. Particular attention will be given to extension of the parking meter program and realignment of parking charges in downtown Tunis to restrain traffic and thus relieve congestion downtown. 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. Estimated Project Costs: Local Foreign Total -------- US $ Million --------- Primary Roads in Greater Tunis 22.9 14.4 37.3 Public Transport in Sfax (SORETRAS) 2.6 3.0 5.6 - Maintenance Facility, Stops and Terminals (2.6) (2.8) (5.4) - Management Information System ( - )WJ (0.2) (0.2) Training 1.0 2.3 3.3 Technical Assistance 0.5 1.6 2.1 Professional Services 0.6 1.2 1.8 Studies - 1/ 0.3 0.3 Base Cost 27.6 22.8 50.4 Physical Contingencies 4.9 4.0 8.9 Price Contingencies 13.5 9.6 23.1 Total Project Cost 46.0 36.4 82.4 Front-end Fee 0.1 0.1 Total Financing Required 46.0 / 36.5 82.5 . Financing Plan: Local Foreign Total -------- US Million --------- Bank - 33.0 33.0 Government 40.8 - 40.8 SORETRAS 4.6 - 4.6 Bilateral and other Multilateral Donors 0.6 3.5 4.1 Total 46.0 36.5 82.5 Estimated Disbursements: Bank FY 1985 1986 1987 1988 1989 1990 1991 1992 - - US $ Mi lion ------------------ Annual 1.0 4.3 5.9 7.4 6.3 4.1 2.8 1.2 Cumulative 1.0 5.3 11.2 18.6 24.9 29.0 31.8 33.0 Economic Rate of Return: 35 percent (for 75 percent of project base costs) Staff Appraisal Report: No. 4960-TUN, dated April 30, 1984 Map No. 18020R 1/ Less than $50,000 2/ Including US$14.8 million of taxes and duties INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE IBRD TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF TUNISIA FOR A SECOND URBAN TRANSPORT PROJECT 1. I submit the following report and recommendation on a proposed loan for the equivalent of US$33.0 million to the Republic of Tunisia to help finance a Second Urban Transport project. The loan, which includes a capitalized front-end fee of 0.25 percent of the Bank loan, would have a term of 17 years, including 4 years of grace, at the standard variable interest rate. The Government of Tunisia would onlend the equivalent of $6.1 million of the loan to Soci6t6 Rggionale de Transports de Sfax (SORETRAS) for 17 years, including 4 years of grace, at the standard variable interest rate. The Government would bear the foreign exchange risk. PART I - THE ECONOMY 2. A special economic report entitled "Tunisia - Review of the Sixth Development Plan (1982-86)" (No. 4137-TUN), in two volumes, was distributed to the Executive Directors on March 16, 1983 and June 29, 1983. This part and the country data sheets, attached in Annex I, reflect the report's findings. They also reflect preliminary results for 1983. An economic mission to review the performance of the first two years of Plan implementation visited Tunisia in April 1984; revised projections for Annex I are being prepared. 3. Much of Tunisia is arid or semi-arid. Only three percent of arable land is irrigated, and areas where rainfed agriculture is possible are subject to severe year-to-year fluctuation in rainfall. Tunisia's most important raw materials are phosphates, petroleum, and natural gas. While the known exploitable reserves of oil and gas are approaching depletion, and the phosphate deposits are of relatively low quality, there have recently been promising indications of new hydrocarbon reserves, although it is too early to assess their exact potential. The country also has considerable tourism potential, and efforts have been made during the last decade to develop it rapidly. 4. Since independence in 1956, Tunisia has undertaken a massive effort towards development of its human resources, paying special attention to family welfare, education, and technical and vocational training. As a result, the infant mortality rate declined from 150 in the early 1960s to 90 at the end of the 1970s, the adult literacy rate increased from under 15 percent to about 62 percent, and average caloric supply per capita increased from about 80 to 115 percent of minimum standard requirements. An active family planning policy pursued by the Government led to a decrease in fertility and birth rates. However, since at the same time mortality rates also decreased, the annual natural demographic growth rate decreased only slightly from 2.6 percent in the 1960s to 2.4 percent in the 1970s. Moreover, after 1976, the net emigration of Tunisians abroad was sharply reduced by restrictive measures taken in the EEC countries and Libya. - 2 - 5. Agriculture still occupies nearly one out: of every three Tunisians in the labor force. To accelerate job creation, more than half of the total investments of the Fifth Plan (1976-81) was allocated to directly productive sectors, but the direct employment effects of the leading sectors (petroleum, phosphate mining and processing, and tourism) are small. These sectors, however, make a vital contribution to GDP, public savings, and exports. They provided 52 percent of the country's foreign exchange earnings in 1983, while manufacturing activities, except phosphate-based chemicals, provided 19 percent. 6. Recent Economic Developments. During the Fifth Plan the growth performance differed from the impressive growth achieved from 1971 to 1976; output in agriculture and in food industries has grown on average below the demographic rate since 1976, partially as a result of bad weather conditions; textile production and tourism development grew at a slower pace mainly because of difficulties in European markets. By contrast, manufacturing industry other than textiles, as well as energy, phosphate processing, construction, and construction materials expanded at a fast pace. 7. In spite of the considerable increase in domestic demand, particularly in investments, the balance of payments situation remained favorable from 1976 to 1981. Imports in current prices grew at a slower pace than exports, and the terms of trade improved significantly due to sharply higher post-1974 export prices for crude oil. As a result, the resource gap remained relatively small, and domestic savings financed on average over 76 percent of investment, which increased from an average of 23 percent of GDP for 1972-76 to 30 percent for 1977-81. The current account deficit was easily financed; grant aid and private investments (mainly for oil exploration) provided about 30 percent, while the remainder was mainly covered by long-term foreign borrowing. Thus, during the 1970s total foreign debt increased little relative to GDP, and the debt service ratio dropped from 15 percent in 1971 to 10 percent in 1979. 8. The public sector has played a major role in mobilizing and redistributing domestic resources. Central Government revenues were equivalent to about one-third of GDP on average for the Fifth Plan period, one of the highest shares among middle-income countries. Over 30 percent of these revenues was saved, and public savings financed close to two-thirds of total. Government capital expenditures. This comfortable public finance situation permitted a rapid increase in payments to private consumers and public enterprises. Such transfers, including those for social security, accounted for 19 percent of total current budget outlays and over 7 percent of GDP in 1981. 9. The main objectives of the Fifth Development Plan were achieved, except for the employment target, and open and hidden unemployment remains a serious problem for the Tunisian economy at present. The actual GDP growth fell short by 1.2 percentage points of the planned rate of 7.3 percent p.a., mainly because of poor performance in agriculture, while the investment objective of 30 percent of GDP was fully met. Completion of some large projects in the public sector (steel, expansion of the oil refinery) was, however, delayed, but private sector investments, both foreign and national, exceeded Plan targets. Although job creation objectives were achieved in all non-agricultural sectors except construction, these sectors could only absorb 90 percent of new job seekers at a time when migration to Libya and Europe slowed down. The overall unemployment rate, estimated at about 12 percent of the labor force in 1980, has therefore not declined. - 3 - 10. In 1982 and 1983, the current economic situation suffered a series of setbacks. GDP in constant prices stagnated in 1982. Three factors accounted for this poor performance: adverse weather conditions which depressed agricultural output and consequently, agro-industrial output; recession in Europe which reduced exports, particularly chemicals and tourism; and exceptional technical problems in key intermediate industries. GDP is estimated to have increased by 4.5 percent in 1983 reflecting a stronger performance in the industrial sector. The slowdown in output, coupled with a large increase in minimum wages and some price liberalization led to an unusually high inflation (13.7 percent) in 1982. In 1983, inflationary pressures were slowed down by an administered reduction in producer prices and sales prices of industrial products and also by an intensification of price controls. The consumer price index in December 1983 was about 6 percent above the December 1982 level. During 1982-83, the current account deficit of the balance of payments experienced a sharp deterioration reflecting: the fall in petroleum export receipts and the reduction in exports of agricultural products; the increase in imports of food products and consumer goods; and the slowdown in tourism due to the unfavorable international economic environment. The deterioration in the trade balance led to a steady drain in the level of foreign reserves in the first half of 1983 and recourse to commercial credit. This trend was reversed in the second half of the year as petroleum exports picked up. Gross reserves at the end of 1983 were equivalent to 1.3 months of imports. 11. Medium-term Prospects. The main objectives of the Sixth Development Plan (1982-86) are employment generation, export promotion, and more rapid growth in the three least developed regions of the country (North-West, Center-West, and South). Sectoral priority is to be given to agriculture, engineering industries, and tourism. 12. The outlook for investment and growth will partly depend upon future developments in the oil and natural gas sector. Oil and gas exploration programs under way have been encouraging. Based on known reserves, and with the possible exploitation of smaller fields that recently became profitable, it is generally expected that domestic oil and gas production could be stabilized at about its present annual level of 5-6 million tons of oil equivalent until the end of the decade. Barring large new oil or gas discoveries, and given the rise in domestic demand for energy, Tunisia will have to face the consequences of a decline in energy revenues. To meet this challenge, the Government has introduced policy changes in the Sixth Plan to reduce the associated economic and social strains, and avoid major balance-of-payments problems. 13. The GDP growth objective of the Sixth Plan of 6.0 percent per annum will be difficult to achieve in view of the poor performance in 1982 and 1983. Growth of traditional exports (tourism, textiles, and phosphate-based chemicals) will be insufficient to compensate for the projected decline in oil export revenues. Production diversification and export promotion, in particular for engineering products, will also take time to bear fruit. The Government's strategy, therefore, rightly aims at containing domestic demand in order to control import growth. Terms of trade are unlikely to improve. This would not only affect the external account but also result in slower growth of domestic savings, particularly public savings. 14. Consequently, the Sixth Plan projected a decline in the fixed investment rate from 30 percent of GDP in 1977-81. A major objective was also to correct recent capital intensive biases in projects by appropriate sectoral allocation of investments. These two objectives will be difficult to achieve; investment remained at 30 percent of GDP in 1983 and job creation fell short of the projected level. Therefore, more resources will have to be allocated to small and medium manufacturing enterprises in the underdeveloped regions, in order to ease the unemployment problem and reduce income disparities between rural and urban areas. Since June 1981, a new set of policy measures has targeted the incentive system toward this objective. The Investment Code was modified to establish industrial zones and offer direct subsidies for job creation in new projects in underdeveloped regions, and a Promotion Fund for Handicrafts and Household Workshops was created. In order to promote a more efficient technical and financial management of the public and private modern sectors, the Plan assigns a major role in project otion and supervision to an expanded network of new development banks (two opened in 1981 and four in 1982); they are joint ventures with foreign investors and should prevent the pressure on the budget to finance too large a share of public investments. 15. Increasing budgetary constraints require a reassessment of the present policies of subsidies for energy, basic foodstuffs, transportation, and public sector enterprises. In addition, interest rate policy and a better-adjusted fiscal system should be used to restrain final consumption and stimulate savings. As first encouraging steps in 1981 and 1982, sizeable price increases in energy and agricultural products were implemented, and the whole interest rate structure was revised upward, rates on saving accounts and term deposits and industrial lending rates being increased by 1.5 to 2 points. Earlier this year when the 1984 budget was presented, the Government announced its decision to increase bread prices sharply and remove the subsidy on bread, cereals and cereal products, a subsidy which represents about 2 percent of GNP. The price increases triggered social unrest and the Government had to abrogate its decision and revise the initially presented budget. There were sizeable increases of the legal minimum wage in 1982 and 1983, mainly to improve the low-wage earners' living conditions, but the Government recognizes that overall wage and salary policies should keep labor cost increases (including social costs chargeable to enterprises) in line with productivity increases, particularly since Tunisia wants to stimulate tourism, and improve its international competitiveness for exports of manufactured goods. 16. Social Issues. Since independence, the country has come a long way towards meeting the basic needs of its population and reducing absolute poverty. About 16 percent of GDP is now devoted to social programs. However, unemployment among the young and regional pockets of poverty still present serious social problems. 17. Recently published data show that the continued attention of the Government to poverty oriented social programs resulted in a reduction of the ratio of people under a minimum standard income from 17 percent of the total population in 1975 to 13 percent in 1980. During this period, the overall number of this group declined in urban areas but remained the same in some rural zones in the center of the country, as a consequence of poor agricultural performance. Income - 5 - differentials between the coast (East) and the interior (West) widened, in part because the system of price controls and subsidies as well as budgetary expenditures had a weak redistributive impact. The Government is focusing on the zones of poverty, with a view to eradicating them before the end of this century. Reducing the demographic growth rate is considered an important factor in this endeavor. 18. Education expenditures rank first among budgetary outlays. The comprehensive education system provides free access to all students, and the gross enrollment rate has reached 100 percent for primary education, and 30 percent for secondary education. The performance of the system could, however, be improved by expanding vocational training programs, improving their relevance and responsiveness to labor demand, and to the special needs of the poor and rural groups. 19. Public health services are second among social expenditures, and their overall beneficial effect is reflected in the improvement of the vital statistics (para. 4). There remain, however, regional disparities in the availability of hospital beds, doctors and nursing personnel; health services have concentrated largely on curative medicine, and the medical referral system is not functioning properly. As a result, the rural poor are often excluded. Closely linked to nutritional deficiencies, infant mortality remains high relative to other middle-income countries. 20. In the Sixth Plan, investment in education, health, housing and water supply focuses more on deprived areas, provided at lower costs (health, shelter), and made more relevant to the needs of the economy (training). In education, two reforms are under discussion: the first one would provide a nine-year schooling period for all children, and the second would create polytechnical high schools combining basic and technical education. In health, the Sixth Plan allocates more resources to preventive medicine and nutrition education. Finally, as regards housing, public subsidized programs are directed to the neediest population groups. The housing demand from households above the minimum standard income can be satisfied by the private sector. 21. External Assistance and Foreign Debt. During the second half of the 1970s, the growth of foreign borrowing was modest and a growing share of foreign funds was provided by public sources at relatively soft terms. Foreign loan commitments averaged about $700 million per annum, 62 percent of which in the form of official assistance (ODA). About 65 percent of ODA commitments came from bilateral sources, chiefly France, the Federal Republic of Germany, Canada, and some oil-surplus countries. About 24 percent of total ODA was committed by the Bank Group, and some 11 percent by other multilateral sources. Borrowing terms v were favorable, averaging 5.8 percent interest and 18.5 years maturity, including a grace period of 5 years. At the end of 1983, debt outstanding and disbursed was estimated at about $3.7 billion, or 45 percent of GNP; debt service was 17 percent of export revenues in 1983. 22. The current account deficit reached $740 million in 1983, and is projected to grow to about tl.0 billion in 1986. New loan commitments from abroad are projected at $1.2 billion per year on average (at 1983 dollar exchange rates) with ODA providing half of the total. The external debt-service ratio is not expected to increase significantly in the medium term. - 15 - 23. Prospects depend on a timely implementation of policy changes to curb domestic demand, promote exports, and improve public sector savings. It should be noted, however, that the Sixth Plan recommended a low growth scenario in order to preserve the country's relatively high financial stability and creditworthiness. This objective remains even more crucial if the country is to succeed in mobilizing the large inflows of direct foreign capital assumed in the Plan. Foreign investments were small during most of the 1970s but have gained momentum during the last three years in line with increased activities in the oil sector, and new incentives offered to foreign investors in manufacturing. The newly created development banks (para. 14) are expected to play a significant role in this context. 24. In conclusion, the balance-of-payments outlook in the medium term will depend on developments in the hydrocarbon sector and on the policy changes to be initiated during the next few years. Considering its long record of prudent balance-of-payments and external debt management, there are good grounds to assume that the Government will apply the necessary policy changes and Tunisia will continue to be creditworthy for future Bank lending. The Bank's close dialogue with the Government on several policy aspects at the macro and micro levels will be pursued in connection with the implementation of these policy changes. PART II - BANK GROUP OPERATIONS IN TUNISIA 25. Since 1962, the Bank has committed to Tunisia sixty-two loans and ten IDA credits amounting respectively to $1,260.2 million and $75.2 million (net of cancellations) of which forty loans and credits have been fully disbursed. Annex II contains a summary statement of Bank loans, IDA credits and IFC investments as of March 31, 1984. Project implementation is generally satisfactory. As of December 31, 1983, overall disbursements amounted to 54 percent of appraisal estimates, which is in line with experience in other countries in the region. Disbursement performance for irrigation, industrial finance and port projects has generally been above the country average, while longer than average disbursement delays have been experienced for agricultural credit, education, highway, urban and fisheries projects, due to project specific problems that are being addressed through supervision missions and sector discussions. In a number of sectors, important institutional improvements have been achieved, and autonomous agencies have been created or strengthened to ensure the efficient management of the related sectors or subsectors. 26. The Bank's lending strategy in Tunisia aims at supporting Government efforts to: (a) increase employment; (b) encourage more balanced growth and distribution of income among regions and income groups with particular emphasis on rural areas, and on operations targeted to low-income population groups; (c) promote export-oriented policies, technological changes and improvements in labor productivity; and (d) provide selective support for the development of basic infrastructure and for institution building in key public services. An important feature of this strategy is to support the Tunisian authorities in the timely and well-coordinated preparation of projects through missions and advice by Bank staff, the assistance of the IBRD/FAO Cooperative Program, the use of the Bank's Project Preparation Facility, and technical assistance projects. The Bank is also supporting the Government in its efforts to increase the mobilization of domestic - 7 - resources, and to secure cofinancing for the projects it assists. The latter is particularly important for projects in the industrial sector where foreign financing agencies rely often on the Bank's project appraisal and supervision capabilities, and in view of the extent of Tunisia's external resource needs. 27. Within this broad framework, past lending emphasized support for long-term investments in infrastructure and social development. Lending for urban and social development including water supply, sewerage, education, health, urban development and the Tunis planning and public transport project has accounted for 34 percent of Bank/IDA commitments in Tunisia since 1971. Lending for transport, power and tourism infrastructure has accounted for 27 percent. Agriculture and fisheries have received 22 percent, and industrial and hotel financing,, mostly through the Economic Development Bank of Tunisia (BDET), 17 percent of total commitments. In addition, the Bank has made two loans for technical assistance, the first aimed at improving the Government's capability for project identification and preparation in the agriculture, industry and energy sectors, and the second designed to rationalize and develop the mining industry. 28. In line with its lending strategy, the Bank will pursue its efforts in key sectors of the economy that offer prospects for economic and social development. It will also assist projects which address the needs of the least developed regions of the country, develop research capabilities, increase productivity, and help reduce the gap between income groups and between urban and rural areas. Particular attention will be paid to employment creation, institution building and agricultural development. In addition to the proposed Second Urban Transport project, proposed future lending would include projects for power, agricultural development in northwestern Tunisia, rural health, urban and regional development, irrigation, industry and energy. 29. The Bank's economic and sector work will continue to focus on strengthening the macroeconomic and sector base for our lending program. It will be centered on the analysis of economic issues and policies related to the necessary adaptation process from a petroleum exporting to a petroleum importing country. This analysis, which was included in the special economic report entitled "Tunisia - Review of the Sixth Development Plan (1982-86)" (No. 4137-TUN), dated March 16, 1983 and June 29, 1983, is being pursued through two special studies on hydrocarbon development and industrial employment creation. A review of the mid-term performance under the Sixth Plan took place in April 1984. Further economic and sector work will include a financial sector study, an industrial policy review, studies of educational finance and administration and housing finance, and a review of the transport sector. 30. The Bank and IDA accounted for about 30 percent of total public commitments to Tunisia during 1979-1982. Their share in total debt outstanding and disbursed at the end of 1982 (including loans from private sources) was about 12 percent, and their share in debt service during 1982 was 11 percent. The share of the Bank and IDA in Tunisia's disbursed external debt is expected to be about 11 percent and their share in the debt service to increase to about 13 percent through 1986. - 8 - 31. IFC has invested in NPK Engrais (a fertilizer plant), in BDET, in Compagnie Financibre et Touristique (COFIT, a company to promote and invest in tourism projects), in Socided Touristique et Hotelibre RYM (a large hotel development), in Industries Chimiques du Fluor (ICF), which produces aluminum fluoride from local fluorspar for export, and in the Sousse-Nord integrated tourism development project. IFC's net cotmnitmerits in Tunisia totalled $8.5 million, as of March 31, 1984. Currently, I[FC is considering a project to rehabilitate and modernize the fluorspar mine supplying ICF, the creation of a leasing company which would be Tunisia's first, and a fertilizer project which would produce phosphoric acid for export4 PART III - THE URBAN TRANSPORT SECTOR 32. Background. By 1980, 55 percent of the Tunisian population of 6.4 million was urbanized, up from 33 percent in 1956. Greater Tunis alone had 1.2 million people, and was growing at 6.9 percent annually; second was Greater Sfax (310,000 people). Urban growth problems include inadequate infrastructure and services, unemployment and a housing shortage. Remedial Government programs are aimed at improving conditions in large cities, and developing the interior. Rural development programs, however, will lack short-term impact, and city growth will continue adding pressure on urban facilities. 33. Urban public transport, chiefly buses running on city streets, is vital for the functioning of major Tunisian cities. In the mid-1970s, when the last surveys were undertaken, public transport carried about 70 percent of daily non-walk journeys in Greater Tunis, and about 36 percent in Sfax where city size, density and topography have favored the use of cycles. At that time, there were about 54,000 passenger cars in the country; since then, private car trips have grown due to a stagnation in the volume and quality of public transport services, and a rise in living standards. Car registrations have been increasing at about 7 percent per annum, despite stiff import duties and fuel taxes (retail gasoline prices are almost double border prices). 34. Issues. The four critical urban transport issues are: (a) Government policy for public transport companies; (b) role of the private sector; (c) strategy for Greater Tunis; and (d) staff and organization of transport-related institutions. 35. Government Policy for Public Transport Companies. Outside Greater Tunis, which is served by a combination of bus and rail services, urban public transport services are supplied by regional transport companies (SRTs). Problems affecting the SRTs (e.g., poor service reliability, bus overcrowding and relatively high production costs) reflect: lack of capital to upgrade fleets and maintenance facilities; low staff productivity; and Government regulations that constrain staffing, financial and operational management of the companies. The key factor is that the Government sets overall fare levels and imposes discount fares for school children, certain civil servants and others. In the past, fare increases were not regular and did not follow costs. Likewise, compensation for revenue losses due to discount fares was - 9 - too low, unrelated to actual losses and followed a fitful schedule. Operating with persistent and increasing financial losses, the SRTs have relied on their freight operations to subsidize passenger transport. However, freight operations, also heavily regulated, have gradually become impoverished and their service has deteriorated. The SRTs have had to cut capital expenditures for renewing their obsolete fleets and maintenance facilities, and increasingly, to rely on short-term Government advances and bank overdrafts to cover expenses. 36. In late 1983, addressing the acute financial crisis of the SRTs, the Government wrote off their public debt as of end-1982, rescheduled their 1983 debt, approved a 16.5 percent fare increase, and injected some capital; however, these helpful measures provided only temporary relief. What is needed is (a) an adjustment to the capital and tariff structure of the SRTs to achieve and maintain longer-term financial viability, and (b) the development of an affordable social policy for public transport. The proposed project will therefore provide: an action program for SORETRAS, the SRT serving Sfax (acting as a model for other SRTs), designed to make its urban operations financially viable, while upgrading its fleet and maintenance facilities; and technical assistance to the Government to develop and implement sound commercial practices in urban public transport. 37. Role of the Private Sector. The potential of private urban transport services in general, and paratransit services in particular, is poorly tapped in Tunisia. The ability of paratransit operations to adapt to a variety of origin-destination patterns, volume fluctuations and passengers' ability to pay (while creating gainful employment and requiring no public subsidy) has been demonstrated in numerous countries, and could be an attractive complement to the services available in Tunisia. Although the Government formally opened transport operations to private suppliers in September 1983, past experience has shown that this is not enough to stimulate entry to the sector. The proposed project will address the practical issues of increasing private sector involvement, through technical assistance to define and implement an appropriate policy. 38. Strategy for Greater Tunis. In Greater Tunis, radial trips generated by the city center are dominant, but substantial non-radial travel demand has been stimulated by recent industrial and housing developments in the south and the emergence of second-order centers in the north and northwest. Urban highway and public transport networks have yet to serve these new travel patterns, or to allow regional (and inter-regional) traffic to by-pass the congested downtown. 39. For a decade, the Government's medium-term strategy for transport in Greater Tunis has been to upgrade public transport services, and simultaneously, to use traffic management measures to maximize utility of the street network and postpone road investments. This strategy has been largely successful, and has made it possible for downtown traffic to keep growing at about 10 percent per annum, with only modest capital expenditures. For the longer term, the Government chose to invest in a light-rail system (MLT), designed to operate on a protected right-of-way on city streets, with priority - 10 - at intersections. A TD82 million contract for a 30km network was signed in 1980; construction began in 1981. The original schedule called for completion in 1984, but it will not be met due to a Government decision in late 1982 to have the 0.75km downtown link go underground, at an estimated additional cost of TD26 million (in 1982 prices). A contract for this link has yet to be signed, and completion of the system will be delayed by two to three years. 40. The downtown street system has now reached capacity. Traffic volumes are nearly stable over the daytime period, and stand-stills are common. There is little off-street parking, and the regulation of on-street parking is still in infancy; hence, parking problems have reinforced traffic congestion. In addition to wasting time and fuel, and worsening air pollution, congestion is also responsible for the gradual deterioration of the downtown as a place to live, work and shop. Although the MlT will benefit public transport users, it will affect other road users by closing a number of important streets and reducing capacity at numerous intersections. 41. The Municipality of Tunis has developed a two-pronged strategy of (a) selected additions and improvements to arterial roads (major works to be carried out by the Ministry of Public Works' Highway Department), to remove regional traffic from downtown streets and to improve the functioning of an inner ring road around it; and (b) restraint on downtown-bound traffic through, inter alia, parking charges. The proposed project would support this strategy through improvements to the arterial network and technical assistance to implement traffic and parking management plans. 42. Staff and Organization of Transport-ReLated Institutions. Although the need for a unified urban transport policy is recognized, regulations and investments are piecemeal and ineffective. This is due in part to the lack of coordination among the institutions (national or local) active in this field; more importantly, these institutions are short of trained, experienced staff. The shortage of transport economists, planners and financial analysts is particularly damaging; in the Ministry of Transport and Communications (MOTC), it hinders the development of an effective policy relating to SRTs and the assessment of the investment programs that: they submit for inclusion in Five-Year Development Plans. Similar problems affect operational levels as well, notably, bus operations and maintenance, traffic engineering and traffic law enforcement. 43. In response, the Government recently created an Interministerial Committee on Urban Transport, to initiate training programs for the sector, develop a comprehensive urban transport policy, and oversee sectoral development plans. Technical support to the Committee will be provided by an Urban Transport Unit (CTTU), located in the MOTC. Implementation of the training program and the ongoing policy development process will be supported by the proposed project. 44. Bank Involvement and Strategy in Urban Transport. The Bank has been actively involved in both the urban and transport sectors in Tunisia since the early 1970s. In the urban sector, the Bank has approved loans for three urban development, three sewerage and five water supply projects. In the transport sector, Bank assistance was provided under five highways, one railways and two port projects. - 11 - 45. Urban Development Projects. The Bank's first urban project in Tunisia was the Tunis District Urban Planning and Public Transport Project ($18 million credit and loan of August 7, 1973; PCR dated February 26, 1982, not elected for an OED review). This project financed a major upgrading program for the National Transport Company (SNT, which serves the capital region) and a substantial traffic management program in downtown Tunis, and helped establish the Tunis District (the planning authority for the capital region). The SNT program comprised renewal and expansion of SNT's fleet and facilities, a financial restructuring plan, and technical assistance to improve SNT's operations, maintenance and management. Although execution of the SNT component was completed with a 3-year delay, due toproblems in securing land from the Municipality of Tunis for a bus depot, by the early 1980s SNT's operations and maintenance were substantially improved. For the period covered by Bank/Government agreements, the SNT was granted capital and tariff increases above those originally estimated; thereafter, the financial situation of the SNT began deteriorationg, due to the failure of tariffs to keep up with costs, the Government's new concern with the MLT and the consequent uncertainty regarding the SNT's future role. On the non-physical side, the SNT component did not reach its objectives: schemes to formally relate the amount of financial support that the SNT would receive from the Government to the staff productivity of the company were not implemented, largely due to weakness of the supervising ministry (MOTC). The Tunis traffic management program was successfully implemented by the Traffic Management Division especially created in the Municipality. The Tunis District had a slow start before it was able to have a significant influence on the capital region's development, especially as regards housing and land use; in the last few years, the District has lost a great deal of its political support and authority. Overall, the project did not significantly contribute to the strengthening of technical and institutional capabilities in the sector, mainly because it did not aim at formal training of local staff. The Second Urban Development Project (419 million loan of May 31, 1979) and the Third Urban Development Project ($25 million loan of January 11, 1983) are shelter projects. The Second Project includes upgrading and sites-and-services for low-income families in Tunis and Sfax; it also includes a small traffic management component in Sfax, technical assistance and training. The project was implemented successfully in Sfax, but expropriation problems and the poor implementation capability of the Tunis Municipality resulted in delays in execution there. The project is now expected to be completed by 1985. The Third Project continues the sites-and-services and upgrading approach, extends it to cities of the interior (Le Kef, Jendouba), and supports the restruc- turing of the sector's institutional framework to permit the "wholesaling" of projects. In support of the proposed project, the Third Project provides funds for: an adviser to the CTTU (para. 43); update of the Greater Tunis highway master plan; studies to design interim improvement programs for the urban operations of the Sfax and Sousse SRTs; and four important policy-related studies. These studies deal with productivity, fares and finances of SRTs; involvement of private transport operators; parking management in central Tunis; and development of a pilot training program for the sector. The recommendations of these studies will be implemented through the technical assistance and training components of the proposed project. - 12 - 46. Highways Projects. Of the five highways projects in Tunisia, the First (1971, US$24.0 million; PPAR No. 2772, December 26, 1979) and the Second (1976, US$28.0 million) were for construction and, improvement of about 500 km of primary and secondary highways. The Third (1978, US$32.0 million) and the Fifth (1982, US$35.5 million) concentrate on rural roads and agricultural facilities. The Fourth (1980, US$36.5 million) provides for maintenance and rehabilitation of the road network. These projects include studies and technical assistance for policy development in the intercity transport sector, and for strengthening institutional capability of the Ministry of Public Works (MEQ). The early projects experienced long delays due to land expropriation problems, lack of counterpart funds, incomplete project preparation and MEQ's inexperience. Under subsequent projects, MEQ accumulated requisite engineering experience and implementation has improved, although some delays in providing counterpart funds are still experienced. Progress on the policy Gide has lagged; however, a Transport Planning Unit has now been established in the MOTC, and work on transport coordination, taxation and tariffs (financed under the Fourth Project) will be carried out in parallel with the initiatives regarding urban transport to be financed under the proposed project. 47. Bank Strategy. The strategy for continuing Bank assistance in urban transport is based on: (a) adopting a sectoral perspective (with physical components in several cities, and working with national institutions); (b) emphasizing policy and institutional development; (c) strengthening linkages with non-urban transport projects; (d) blending expatriate technical assistance with formal training of local staff; and (e) conceiving Bank assistance as a stream of projects, providing the continuity necessary to assure that policy-making becomes an effective, well monitored process. PART IV - THE PROJECT 48. The proposed project is the result of a dialogue between the Tunisian Government and the Bank on development of the urban transport sector, based on the findings and recommendations of an Urban Transport Review carried out by the Bank in 1981/82. Agreement on project scope was reached during 1982, financing for preparation was included in the Third Urban Development Loan approved in December 1982, and preparation carried out by the Highway Department (DGPC) of the Ministry of Public Works and the Regional Transport Company of Sfax (SORETRAS) with the assistance of consultants began in early 1983. The project was appraised in two stages, in October and December 1983. Negotiations were held in Washington from April 9 to 13, 1984. The Tunisian delegation was led by Mr. H. Ben Ali, the Director General of Infrastructure and Urban Development Projects in the Ministry of Planning, and included representatives of DGPC, SORETRAS, MOTC and the Municipality of Tunis. The Staff Appraisal Report entitled "Republic of Tunisia - Fourth Urban Development (Transport) Project," No. 4960-TUN of April 30, 1984, is being distributed separately to the Executive Directors. The main features of the project are summarized in the Loan and Project Summary and in Annex III of this President's Report. A map showing the location of areas covered by the project is attached. - 13 - 49. Project Objectives and Description. The objectives of the proposed project are to: improve the level of urban transport services in Greater Tunis and Greater Sfax and increase efficiency in supplying these services; strengthen the capacity of sector institutions to manage and plan urban transport systems effectively; and support the development and implementation of a comprehensive urban transport policy. The project would consist of: (i) Widening and construction of interchanges, overpasses and connections on a series of primary road segments located in a corridor east of downtown Tunis, constituting an eastern bypass (to be executed by DGPC); (ii) Construction and equipment of a 250-bus maintenance facility and improvement of bus stops and terminals in Sfax (to be executed by SORETRAS); (iii) Provision of a computer-based management information system to assist SORETRAS with its service and manpower scheduling, spare parts management, cost accounting and integration of cost and financial accounts; (iv) Carrying out of a pilot national training program for urban transport personnel (to be executed by MOTC); (v) Technical assistance to the Municipality of Tunis for implementing parking and traffic management plans, to SORETRAS for introducing and following up new work practices in operations, maintenance and administration, and to the MOTC for coordination and evaluation of the training program, for following up policy studies related to the productivity, fares and finances of regional transport companies (SRTs) and to private involvement in the sector, and for future project preparation; and (vi) Transport planning studies to integrate public transport, highway investment and traffic management with urban development plans in Greater Tunis and Greater Sfax (to be carried out by the Tunis District and the Municipality of Sfax, respectively) for the 1990-2000 period, including provision of computer equipment for developing a monitoring system for urban transport development in Greater Tunis. 50. Project Cost and Financing. The total estimated cost of the project (base price December 1983), excluding the front-end fee, is t82.4 million, of which $36.4 million is in foreign exchange. Cost estimates are based on either preliminary engineering or sketch designs for civil works or functional specifications for equipment. Ail estimates were checked against previous contracts for similar investments in Tunisia. Taxes and duties estimated at t14.8 million have been included, as well as physical contingencies representing about 18 percent of base costs (20 percent for civil works and 15 percent for equipment) and price contingencies totalling about 39 percent of - 14 - base costs plus physical contingencies (7.5 percent for 1984, 7 percent for 1985 and 6 percent thereafter for foreign costs; 9 percent for 1984 and 8 percent thereafter for local costs). The project includes 200 man-months of foreign expert services for the technical assistance and studies components and 255 man-months of local professional services for engineering and construction supervision. 51. The proposed Bank loan of $33.0 million would finance 90 percent of the total foreign exchange cost of the project, including the entire foreign exchange cost for civil works, equipment, professional services and studies, as well as 32 percent of that for technical assistance and training. The loan would represent 40 percent of the total cost, or 49 percent of the total cost net of taxes. In addition, it would cover the front-end fee of $0.8 million. Cofinancing, in an aggregate amount of about $4.1 million, or about 5 percent of total project cost, would be provided by bilateral and other multilateral sources to cover 58 percent of the technical assistance and training component (68 percent of the foreign cost and 30 percent of the local cost). The Government has started making contacts with potential cofinanciers, many of which have expressed interest. Assurances were obtained during negotiations that the required cofinancing would be available by March 31, 1985 or that the Government would, by that date, provide the funds from other sources (including, if need be, its own resources) to allow the program to proceed on schedule (Loan Agreement, Section 5.01(e)). The Government of Tunisia and SORETRAS would finance 49 and 6 percent of total costs, respectively, covering the remainder of local costs. The Bank loan would be made to the Government, which would onlend that portion of the loan ($6.1 million) allocated for SORETRAS' works to SORETRAS on the same terms and conditions as the Bank Loan. The Government would bear the foreign exchange risk on these onlent funds. Execution of a Subsidiary Loan Agreement between the Government and SORETRAS, on terms and conditions satisfactory to the Bank, would be a condition of effectiveness of the proposed loan (Loan Agreement, Section 6.01(a)). Details of project costs and financing are contained in the Loan and Project Summary. 52. Status of Project Preparation. Detailed engineering for first year works and preliminary engineering for other project works are completed. Negotiations for purchase of the land needed for the eastern bypass in Tunis have already begun; the Government has indicated that, if necessary, it would expropriate the land, thus ensuring timely execution of the works. No problems are expected with expropriation under this project. In order to ensure rapid implementation of the SORETRAS works, official transfer of land to SORETRAS for construction of its bus maintenance facility and awarding of a contract to complete land reclamation and preparation for this facility have been completed. 53. Procurement and Disbursement. Contracts for civil works for the Tunis roads, expected to total about $32.0 million without contingencies, would be awarded on the basis of international competitive bidding (ICB) procedures according to Bank guidelines. Both Tunisian and foreign contractors are expected to bid for the works. Contractors would be prequalified and works would be grouped in lots estimated to cost at least $0.7 million; contractors would be allowed to bid for one or more lots in combination. Contracts for constructing the SORETRAS maintenance facilities and improvements to bus - 15 - stops and terminals, expected to total about $4.1 million, would also be awarded through ICB, with prequalification of contractors for the maintenance facilities. The Bank would review bidding documents for all civil works of $1.0 million and above. SORETRAS' maintenance equipment, estimated to total about $1.2 million, would also be procured through ICB. A margin of preference of 15 percent or the actual customs duties (whichever is less) will be allowed for domestic manufacturers. All ICB bid documents for equipment would be reviewed by the Bank. Because of the modest cost involved (estimated at about $0.3 million), the computer equipment for SORETRAS and the Tunis District would be procured by obtaining and comparing quotations from at least three manufacturers or suppliers. Consultants financed under the Bank loan would be employed in accordance with Bank guidelines. For those consultants to be financed by other sources, assurances would be sought during negotiations that their qualifications, experience and terms of reference would be satisfactory to the Bank (Loan Agreement, Section 3.04 (a); Project Agreement, Section 2.02 (a)). 54. The proposed Bank loan would be disbursed over a period of seven years as follows: 45 percent of total expenditures for civil works (excluding land costs); 100 percent of foreign expenditures for imported equipment and 75 percent of local expenditures for equipment procured locally; 70 percent of total expenditures for professional services; and 80 percent of total expenditures for that portion of the technical assistance and training financed by the Bank loan. The front-end fee would be withdrawn and paid to the Bank at loan effectiveness. The loan Closing Date would be June 30, 1992. 55. Project Execution and Maintenance, Institution Building and Policy Development. No problems are foreseen with the physical implementation of the project or maintenance of project works. DGPC, which is responsible for constructing and maintaining the national highway network, including links that pass through urban areas, is adequately staffed and has a proven track record for executing highway works. The maintenance cost of the new road links to be established in the Greater Tunis area is within the budgetary and technical capacity of the DGPC Tunis regional office, which has recently expanded its maintenance facilities. SORETRAS is also adequately staffed and its management has demonstrated a high level of motivation and ability to mobilize its staff to carry out project works. The financial measures to be taken to put SORETRAS back on sound financial footing and provision of technical assistance will ensure that the SORETRAS facilities are properly maintained (para. 60). The Traffic Management Division of the Municipality of Tunis, which would oversee implementation of Tunis' parking and traffic management plans, has shown its capability to deal with these matters in the past. * 56. However, as has been discussed earlier, institutional weakness is an obstacle to effective overall development of the urban transport sector. The MOTC is supposed to handle coordination among the many institutions involved in the sector, in addition to overseeing regulation and policy development. However, its staff is inexperienced and not adequately trained to handle effectively its responsibilities. The Interministerial Coordination Committee for Urban Transport and its technical unit (CTTU) in the MOTC (para. 43) were created recently to help resolve the institutional coordination problem; the staffing and work program of the CTTU were reviewed at - 16 - negotiations and found satisfactory. Assurances were obtained that the Interministerial Committee and the CTTU would be maintained throughout the project period (Loan Agreement, Section 3.03 (a) and (b)). In addition to creation of this formal structure, a significant program of training and technical assistance is planned for the sector (discussed in paras. 57-61). 57. Sector institutions lack trained and experienced staff at all levels, from policy development and planning down to proper maintenance procedures. A preliminary four-year training program for approximately 2,500 technical, professional and managerial staff in the sector was prepared during appraisal. The details of this program will be developed in a study to be financed under the Third Urban Project (para. 45). In view of the importance of the training component, assurances were obtained during negotiations that, as conditions of effectiveness of the Bank loan, the MOTC would prepare and present the training program proposal, as well as a specific plan of training activities for 1985, to the Bank for approval, and would assign a training administrator (local) and appoint a training expert (under the technical assistance component of the project) (Loan Agreement, Section 6.01(b)(c) and (d)). Furthermore, assurances were obtained that the Government would prepare and furnish to the Bank by September 1, 1985 a detailed implementation schedule for the complete national training program, fully endorsed by the departments and agencies which would carry it out, and would thereafter implement the program (Loan Agreement, Section 3.09). 58. The Government has demonstrated its commitment to strengthening the urban transport sector through a number of decisions it has taken recently, aimed at either improving the SRTs' situation (e.g., writing off their public debt and increasing their tariffs) or at laying down the foundations for sectoral policy (e.g., opening transport operations to private suppliers). However, in view of the overall weakness of the sector, guidance is needed to ensure their development into a coherent urban transport policy. As noted in para. 45, financing for studies to be used as a basis for sector dialogue in key areas is included in the Third Urban Project, and procedures to contract them are currently underway. Issues related to the parking study are discussed in para. 61. The study on productivity, fares and finances of SRTs would set sector goals, estimate the costs of achieving these goals and agree on funding and performance obligations of each party. The ultimate objective of this study is to establish the basis for an annual contracting process between the MOTO and the SRTs whereby the SRTs would agree to serve certain routes and markets and achieve given productivity objectives, while the Government would agree to pay appropriate compensation and approve tariff increases needed to safeguard the SRTs' financial viability. The private sector study would identify operating and financial characteristics of existing private transport operators in Tunisia, analyze related Government regulations, and propose actions (regulatory and other) necessary to stimulate increased involvement of private operators in providing transport services. Assurances were obtained during negotiations that the MOTC would prepare and present the results of these studies to the Bank for review by September 1 and June 30, 1985, respectively, and implement the agreed program in each area according to a timetable satisfactory to the Bank (Loan Agreement, Section 3.10). Technical assistance is included under the proposed project to help with this implementation. - 17 - 59. SORETRAS. SORETRAS is 90 percent publicly owned and provides urban passenger as well as freight and interurban passenger services. The share of SORETRAS' Urban Division in providing passenger services in Sfax has declined from about 36 percent of daily non-walk trips in the mid-1970s to about 30 percent currently. This is due to the fact that buses are overcrowded and old, and services unreliable. Costs are high due to a difficult route structure, inadequacy of maintenance facilities and inefficient organization and work practices. The financial situation of SORETRAS' Urban Division, like that of most SRTs in Tunisia, is unsatisfactory (para. 35). In spite of annual fare increases in 1981-1983, SORETRAS' operating revenues from urban passenger services have not covered direct operating expenses since 1980. While overall fare increases have lagged behind inflation, the main reason for the shortfall has been the Government's failure to fully and regularly compensate SORETRAS for the social tariffs (mostly for school children) the Government imposes; about 40 percent of SORETRAS' passengers pay discount fares. The consequences for SORETRAS' Urban Division have been serious: the accumulated accounting deficit at the end of 1983 was estimated to be TD2.4 million; the 1984 deficit (before compensation) is forecast to reach TD2.2 million. SORETRAS' Urban Division has survived by cross-subsidization from the company's freight operations, by borrowing short-term, and by delaying payments to suppliers, to the national social security fund and to the Government (taxes). None of these measures can continue indefinitely. The balance sheet for SORETRAS as a whole shows that in 1980, accumulated losses already exceeded the social capital invested in SORETRAS, and by the end of 1982, they were four times higher. The most critical issue is the large amount of short-term debt (TD7.8 million in 1982). The Government's decision in 1983 to write off the public debt of all SRTs as of the end of 1982 will help remove accumulated losses of SORETRAS from its balance sheet. However, SORETRAS remains short of cash and without the means to upgrade its aged plant and fleet. 60. The Government recognizes that more permanent measures must be taken to help the SRTs. It has decided to use the proposed project as a test case to resolve the problems of one SRT, SORETRAS. Based on this experience, the problems of other SRTs would be addressed more effectively in the future. It is recognized that SORETRAS' financial problems are too serious to be resolved immediately, and a program has been developed to allow gradual improvement, with the objective of putting SORETRAS' urban passenger transport services on a sound financial footing by the end of 1988. As a specific measure of its financial viability, agreement was reached at negotiations that SORETRAS would maintain a working ratio, i.e. the relation of direct operating expenses to operating revenue for its urban passenger services, of no more than 0.79:1 in 1985, 0.76:1 in 1986, 0.73:1 in 1987, 0.71:1 in 1988 and 0.70:1 thereafter. In order to achieve these ratios, which would allow SORETRAS to cover its debt service obligations as well as generate funding for replacement and expansion of the company's productive assets, it was agreed that: (i) SORETRAS would be allowed to retain the taxes on revenues it would have to pay to the Government over the 1984-88 period, amounting to about TD2.8 million, and would use these retained funds for the purchase of productive assets; (ii) - 18 - the Government would fully compensate SORETRAS for social tariffs starting in 1984, amounting to an annual average of TD2.6 million between 1984-91 (compensation for the period January 1 - September 30, 1984 to be a condition of effectiveness of the Bank Loan - Loan Agreement, Section 6.01(e)); and (iii) SORETRAS would before October 31 of each year starting in 1984, review the adequacy of its financial resources, including specifically its tariffs, and thereafter review with the Government and the Bank its fare proposals for the following year; and the Government would promptly after such review take all action necessary to enable SORETRAS to increase its tariffs or take other measures satisfactory to the Bank to attain the ratio specified for each year. Assurances were obtained during negotiations that SORETRAS and the Government would take all necessary action to implement the above financial action plan according to a timetable satisfactory to the Bank (Loan Agreement, Section 3.11; Project Agreement, Section 4.05), and that SORETRAS would maintain a working ratio of no more than 0.70:1 at all times after 1988 (Project Agreement, Section 4.06). Finally, assurances were obtained that SORETRAS would submit to the Bank for review by September 30 of each year its investment plan and financial projections for the next five years (Project Agreement, Section 4.04). This investment plan would include a fleet renewal and expansion program, which SORETRAS will undertake outside the project using Government-guaranteed loans and its own resources. SORETRAS' proposed fleet purchases have been reviewed and found satisfactory by the Bank. SORETRAS' financial rehabilitation and fleet expansion will go in tandem with the physical investments and technical assistance (3 experts) provided under the proposed project to restructure SORETRAS' service network, improve maintenance and passenger facilities and improve operations, maintenance and administration. In view of the importance of the technical assistance to effective project implementation, it was agreed that the experts would be employed by March 31, 1985. 61. Parking. The primary road investments to be done in Tunis, by diverting through-traffic away from the downtown area, will liberate some road capacity therein. If no other measures were taken, this reserve capacity would be quickly filled by induced car traffic, thus recreating a state of permanent congestion. To prevent this, the project will support implementation of traffic restraint through parking charges. A parking meter program has already been introduced in Tunis at the initiative of and financed by the Municipality. There is not yet, however, a clear policy as to the level of charges (which should ultimately be consistent with land rents), or the extent of area coverage. One of the studies financed under the Third Urban Project will help define an appropriate parking policy, and experts would be financed under the proposed project to help the Municipality of Tunis implement the results. Assurances were obtained during negotiations that the Municipality would prepare and present to the Government and Bank for approval a draft parking management plan by May 1, 1985, including measures concerning extension of the parking meter program and realignment of parking meter rates, and implement the agreed plan according to a timetable satisfactory to the Bank (Loan Agreement, Section 3.08). The implementation would be supported by seminars, as part of the project's training component, aimed at improving police enforcement of traffic regulations. - 19 - 62. Supervision and Monitoring. In view of the project goal of institution building and policy development, a significant program of Bank supervision missions is planned for the project. In addition, key indicators of project progress have been agreed, and assurances were obtained during negotiations that the Government and SORETRAS would submit to the Bank progress reports on April 30, August 31 and December 31 of each year (Loan Agreement, Section 3.06(b)(iii); Project Agreement, Section 2.05(b)(iii)). Assurances were also obtained that SORETRAS would provide, by April 30 of each year, a report on key indicators and targets of its efficiency/financial performance, and take necessary remedial action to ensure that these targets are met (Project Agreement, Section 3.05). 63. Audits. SORETRAS is run as a commercial entity and thus maintains conventional accounts. Government regulations require that SORETRAS' accounts be audited every three years; the most recent audit, for 1981, has been presented to the Bank and found satisfactory. Agreement was reached during negotiations that audits for 1982 and 1983 would be prepared and presented to the Bank by September 30 and December 31, 1984, respectively. Assurances were also obtained that, starting with the 1984 accounts, SORETRAS would furnish to the Bank, within six months after the end of each fiscal year, copies of its financial statements for such year, would have its accounts audited by independent auditors acceptable to the Bank, and would submit certified audit reports to the Bank for review and comment within nine months after the end of the fiscal year (Project Agreement, Section 4.03). SORETRAS would maintain separate accounts for its freight and passenger operations, with its passenger accounts further subdivided into urban and intercity operations. For the DGPC, MOTC, Municipality of Tunis, District of Tunis and Municipality of Sfax project activities, the project accounts would also be audited and submitted to the Bank within the same time period (Loan Agreement, Section 4.02). An understanding was reached during negotiations that the Controller General of Finance, who has independent status and is acceptable to the Bank, would do this audit. 64. Justification and Risks. In the context of urban transport planning, public transport, highway and traffic management alternatives compete for scarce resources. In the Greater Tunis area, a major public transport project (MLT) is under construction and the existing bus network will be scaled down and reoriented to achieve a unified system. Traffic management methods are already being applied. Highway investments have, however, been lacking. Investments in the Greater Tunis primary road bypass (representing 64 percent of total project base costs) will improve conditions for regional (non-central) travel for all highway-based transport modes: private and public, passenger and freight. It is not possible to evaluate precisely the a distribution of impacts, but they are expected to benefit people making longer, interperipheral trips, in accordance with the city's urban development policy to favor the development of non-central locations. The diversion of traffic from the downtown area, if accompanied by measures as noted in para. 61 to avoid induced additional traffic, would facilitate the carrying out of business, shopping and cultural activities therein. For the economic analysis -- 20 - of the bypass, benefits were evaluated in terms of vehicle operating cost and passenger travel time savings, and the analysis was carried out by treating the bypass as a single investment as well as by dividing the bypass into five parts and evaluating the economic worth of each part on an incremental basis. The overall rate of return was calculated at 36 percent; various sensitivity tests show that the whole package is acceptable (rate of return over 10 percent) under all likely scenarios. The incremental analysis of each segment also shows acceptable rates of return (17 to 73 percent). 65. The SORETRAS improvement program (representing 11 percent of total project base costs) would improve the frequency, reliability, convenience and comfort of SORETRAS' services for its passengers. Evaluating the benefits in terms of capital cost savings (with more buses available due to improved maintenance, less new buses need to be bought for the expected level of patronage) and operating and maintenance cost savings (with improved staff efficiency, less new staff would be needed), the rate of return was calculated at 29 percent. Savings in operating costs represent the largest contribution to this analysis. If they do not materialize, the rate of return would fall to 14 percent. If any two of the three categories of benefits defined above should fail to materialize, the rate of return would fall to 10 percent or below. Careful attention will therefore be given to monitoring the productivity of SORETRAS' operations and maintenance staff. 66. The weighted average rate of return for the Tunis and Sfax physical components is 35 percent. The need for the training, technical assistance and studies components, which were not included in the economic analysis, is directly related to major policy and institutional objectives of Bank assistance in the sector. 67. No problems are foreseen with physical implementation of the project, but there is a risk that progress on sector policy may lag behind, although the Government has already shown its commitment to change (para. 58). The project's technical assistance and training components, accompanied by a strong Bank supervision effort, should help strengthen sector institutions and overcome this risk. For the Tunis bypass investment, there is a risk that if there is no complementary parking initiative, the benefits of the project in downtown Tunis could be negated. This risk is minimized by the success of the parking meter program already in place in parts of the city at the Municipality's own initiative. As regards the Sfax component, there is a risk that the growth in demand for SORETRAS' services may be slower than predicted, either because of increased car traffic or competition from privately-provided transport operators. However, demand estimates were based on a conservative rate of traffic growth, and past experience in Tunisia suggests that there is substantial latent demand for urban public transport. Also, competition from private operators is expected to affect only the outlying, low density portions of the longer SORETRAS lines, where the smaller vehicles generally favored by these operators give them a comparative advantage. This would lead to redeployment of SORETRAS' larger vehicles on more profitable urban routes, rather than causing a loss of traffic. This risk is therefore low and well worth taking, given the urgent need to improve public transport services in Sfax. - 21 - 68. Justification for Project and Bank Support. The Bank's 1982-Urban Transport Review recognized that Tunis' population growth had led to a situation where road infrastructure investments were required to ensure urban transport services of reasonable quality, pointed to the deteriorating financial situation of the public transport companies, and identified institutional, manpower and policy weaknesses as impediments to developing the sector. All of these areas will be addressed under the proposed project. Bank involvement in this effort is justified in view of: (a) the preeminence of the institution-building aspect of the project; (b) the Government's willingness to consider important policy changes which, however, need guidance to ensure their development into a coherent urban transport policy; and (c) the need to carefully select those infrastructure investments to be undertaken, in view of limited Government resources. PART V - LEGAL INSTRUMENTS AND AUTHORITY 69. The draft Loan Agreement between the Republic of Tunisia and the Bank, the draft Project Agreement between the Bank and SORETRAS, and the Report of the Committee provided for in Article III, Section 4(iii) of the Articles of Agreement are being distributed separately to the Executive Directors. Special features of the project are listed in Section III of Annex III. Execution of a Subsidiary Loan Agreement between the Government and SORETRAS, approval of a sector training program proposal and specific plan of training activities for 1985, assignment of a training administrator and appointment of a training expert, and payment by the Government to SORETRAS of compensation for social tariffs for the period January 1 - September 30, 1984 would be special conditions of effectiveness. 70. I am satisfied that the proposed Loan would comply with the Articles of Agreement of the Bank. PART VI - RECOMMENDATION 71. I recommend that the Executive Directors approve the proposed Loan. A. W. Clausen President Attachments May 7, 1984 Washington D.C. . - 22 - ANNEX I Ta sj a Page 1 of 6 TUNISIA SOCIAL INDICATORS DATA SBET TtmSIA inRE GROUPS (WBIGHTED AnRIACES) /a NDST (MOST ICENT ESTIMATE) A RECEN MIDDLE INCOME MIDDLE INCOME 19 19701 ISTIMT11k N. JJICA MID EAST LAT. AMERICA & CARIB A.. <U25 so. m> TOTAL 163.6 163.6 163.6 AGRICULTURAL 69.6 70.3 72.5 GmP m CAPITA (U$) 210.0 370.0 1420.0 1340.0 2068.2 sunt csunrnow m cAi n (KILOGRAMS OF COAL EQUIVALENT) 173.0 361.0 632.0 810.4 1407.6 PatlLATIl A VITAL STATSTICS POPULATION,NXD-YEAR (THOUSANDS) 4221.0 3127.0 6528.0 URBAN POPULATION (2 OF TOTAL) 36.0 43.5 52.9 47.4 65.9 POPULATION PROJECTIONS POPULATION IN YEAR 2000 (KILL) 10.1 STATIONARY POPULATION (KILL) 19.5 YEAR STATIONARY POP. REACKEJ 21LO POPULATION DENSITY PER SQ. lo. 25.8 31.3 38.9 36.0 35.6 PER SQ. KM. AGRI. LAND 60.7 72.9 87.6 449.0 93.2 POPULATION AGE STRUCTURE (2) 0-14 YRS 43.4 46.2 40.7 43.9 40.1 15-64 YRS 52.5 50.0 35.6 52.6 55.8 65 AND ABOVE 6.2 3.8 3.7 3.3 4.1 POPULATION GROWTH RATE () TOTAL %.8/c 1.9/c 2.2/0 2.9 2.3 URBAN 1.2 3.8 4.0 4.6 3.7 CRUDE BIRTH RATE (PER THOUS) 48.9 40.6 34.2 42.5 31.5 CRUDE DEATH RATE (PER THOUS) 21.0 14.6 9.1 12.0 8.1 GROSS REPRODUCTION RATE 3,5 3.2 2.5 3.0 2.0 FAMILY PLANNING ACCEPTORS, ANNUAL. (THOUS) .. 29.2 180.9 USERS (Z OF MARRIED WOMEN) .. 10.0 21.3 P00D AND NTRITION INDEX OF FOOD PROD. PER CAPITA (1969-71L00) 97.0 96.0 127.0 97.5 113.0 PER CAPITA SUPPLY OF CALORIES (% OF RqUIREMENTS) 83.0 88.0 116.0 102.3 111.3 PROTEINS (GRAMS PER DAY) 52.G 57.0 74.0 72.0 67.9 OF WHICH ANIMAL AND PULSE 13.0 14.0 23.0/d 17.8 34.L CHILD (AGES 1-4) DEATH RATE 36.1 24.5 9.1 15.2 5.3 BRALTB LIFE EXPECT. AT BIRTH (YEARS) 46.1 54.2 60.6 57.2 64.6 INFANT MORT. RATE (PER THOUS) 158.9 231.3 87.6 104.2 62.6 ACCESS TO SAFE WAT.R (%POP) TOTAL . 49.0 63 0'0e f 59.3 64.8 URBAN . . . 97.0, . 84.9 77.8 RJRAL .. .. 25.0 , * 37.5 44.3 ACCESS TO EXCRETA OISPOSAL (% OF POPULATION) TOTAL .. 62.0 . .. 54.6 URBAN .. 100.0 42.0/e .. 69.8 RURAL . 34.0 .. .. 29.8 POPULATION PER PHYSICIAN 10030.0 5930.0 3690.0 3536.0 1776,0 POP. PER NURSING PERSON .. 730.0 890.0 L820.7 1012.2 POP. PER HOSPITAL BED TOTAL 410.0 410.0 460.0 643.3 477.0 URBAN 230.0/ 310.0 350.0/h 545.0 667.5 RURAL 1040.0Z/ 1270.0 1230.07.7 2462.0 1921.6 ADMISSIONS PER HOSPITAL BED . 24.1 25.0/h 26.4 27.2 HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL .. 5.1/1 5.5.. URBAN .. 5.1/1 5.5. RURAL . 5.1 i76 .. .. AVERAGE NO. OF PERSONS/ROOM TOTAL .. 3.2/i 3.1/. URBAN .. 2.7 2.6. RURAL .. 36 3. ACCESS TO ELECT. (% OF DWELLINGS) TOTAL .. 24.0/1 34.2/ 46.2 URBAN .. .. 68.2 77.6 RURAL .. .. 6.0 16.1 - 23 - ANNEX I TABLE 3A Page 2 of 6 TUNISIA - SOCIAL INDICATORS DATA SHEET TUNISIA REFERENCE GROUPS (WEIGHTED AVERAGES) /a MOST (MOST RECENT ESTIMATE) /b RECENT MIDDLE INCOME MIDDLE WCOME 19601b 1970/b ESTIMATE1b N. AFRICA & MID EAST LAT. AMERICA & CARIB EDUCATION ADJUSTED ENROLLMENT RATIOS PRIMARY: "TAL 66.0 101.0 103.0 89.6 105.0 MALE 88.0 121.0 118.0 104.8 106.3 FEMALE 43.0 80.0 88.0 72.4 103.6 SECONDARY: TOTAL 12.0 23.0 27.0 41.7 40.0 MALE 19.0 33.0 34.0 52.8 38.6 FEMALE 5.0 13.0 20.0 31.2 41.2 VOCATIONAL (Z OF SECONDARY) 23.5 11.1 27.3 10.3 34.0 PUPIL-TEACHER RATIO PRIMARY 61.0 47.0 39.0 31.9 30.7 SECONDARY 16.0 28.0 20.0 23.3 16.7 ADULT LITERACY RATE (Z) 15.5 24.0/1 62.0 43.3 79.5 CONSUMPTION PASSENGER CARS/THOUSAND POP 10.5 13.0 18.3± 18.0 45.6 RADIO RECEIVERS/TROUSAND POP 40.3 75.7 157.0 138.1 228.2 TV RECEIVERS/THOUSAND POP 0.1 14.0 47.1 45.6 108.3 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION 18.6 15.9 43.6 31.0 64.1 CINEMA ANNUAL ATTENDANCE/CAPITA 1.6 .. 1.5/d 1.7 2.9 LABOR FORCE TOTAL LABOR FORCE (THOUS) 1138.0 1215.0 1693.0 FEMALE (PERCENT) 6.0 7.7 8.4 10.7 24.8 AGRICULTURE (PERCENT) 56.0 50.0 35.0 42.5 31.3 INDUSTRY (PERCENT) 18.0 21.0 32.0 27.8 23.9 PARTICIPATION RATE (PERCENT) TOTAL 27.0 23.7 25.9 25.6 31.3 MALE 50.2 44.2 46.9 45.4 49.8 FEMALE 3.3 3.6 4.4 5.6 14.8 ECONOMIC DEPENDENCY RATIO 1.8 2.1 1.7 1.8 1.4 1NCOME DISTRIBUTION PERCENT OF PRIVATE INCOME RECEIVED BY HIGHEST 5% OF HOUSEHOLDS .. .. 17. HIGHEST 20% OF AOUSEHOLDS .. .. 42. 0.. LOWEST 20% OF HOUSEHOLDS .. .. 6.0. LOWEST 40% OF HOUSEHOLDS .. ... POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVEL (USS PER CAPITA) URBAN .. .. 204.0/d 276.1 289.8 RURAL .. .. 97.07 177.1 184.5 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) UR3AN .. .. 193.0/d 400.0 519.8 RURAL .. .. 193.0K/ 283.3 372.1 ESTIMATED POP. BELO4 ABSOLUTE POVERTY INCOME LEVEL (4) URSAN .. .. 20.0/d 22.0 RURAL .. .. 15.0/d 30.8 NOT AVAILABLE NOT APPLICABLE N O TE S /a The group averages for each indicator are population-weighted 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; "Data for 1970" between 1969 and 1971; and data for "Most Recent Estimate" between 1979 and 1981. /c Due to emigration, population growth rate Is lower than rate of natural increase; /d 1977; /e 1982; /f Access to piped water only; I 1962; /h 1976; /1 1966; /j 1975. * Based on recent Official sources, updated percentages of population having access to safe water are: total (70.0), urban (91.0), rural (46.0). These figures will be included in the next version of the social indicators data sheet. - 24- - ANNEX I DEFINITINS OF SCIAL INDC'CATORS Page 3 of 6 Nce., Alrhoug the date a traen Ire seurae genreoally judged the o t autrtate and 4e"ltble, an rbould alro be n t 1 e ror be Inernatally comparable beceose of the lckat stendardied defnttonø and concepta ued by dlfferett counts an Iollacuny thr data. The de-a are, nonntheleee, ueef'l to decrlbe arders of magnitde, indig.te trende, ond chArat'erie aertaln sejar dlfferncae beteen cunatlri The referne groupe are (1) the same country group at ah, rabjece country and 2) o country group with a 1aewhat n6gher average ance than the country greup ef the subject eountny (ecept for "6igh Ztnoe' il Exporera group whcera "Middle tnneoe anarth Afria and Meddll at 'is choaen breause af rtronger eocio-altural affinltiar), tn the reereance group data the averge. ae population weighted ar nhett tme rn far eah ndatatr and otwn 0nly whaen majority af the ceuntries to a group has date for that tndfeator. bitce the c torge et countrihr re ong tn Indleotor depende rn the .aala t y at dato end is not antfarm, caution suet be -nerr Iedn rnlatItg average nf one Indicator to an thor. Thase avraf e ao only useful In conparing tne Value at ene Inoec atr at a rIes ameng the cntry ad reference groupe. ARBA (tbaueand eq.ko,) Pulation per ysocian - Papal1t,n dlvided by nuaber f pract.cing ""Tail - Tea1 uerface aran comprLang land area and inland wator; 1960, dpysinr quallfied ron a medcal cool a unleeraty lenet. l97 ean o dets. Ppuletion per Nurtang Peron- P.pulatao di. ided by nuaer ef practicing Arlcuotraat - lEsaete at rgrcaultral arsed taparari ly ar pereanently aele and era dradute nurse, assistant nuraeø, pracical norses And for arape, paraures, earkst ad katahen gardoe er nu lia fallow; 1960, nareing auxliarLe, 1970 nd 1980 data. Po ati.n er HoepItal Bad - ttal, uran, and rural - Pulatin (total, urbn, and rral) dilldd by thalr rospeative nuaber f ospital bade GNP PER CAPITA ($ - tNP per capita artimatas a aurrenl norkrt prce, evalble in public und Private gn.ral aad specaieIrad hospits" and calcultedii7by i sam caeralon nethod os Wreld Boa atlet (1979-91 baaln); rahablttation uonters, naepitale e etablishmeenta pereanently staffed 1960, 1970, and 1981 data, by at leoast one phyeican. Esttablshents yrovidng prtneipally waetodl care art not Inctudod. Rural hosptal , however, Include health end ENERCY CONlLgTo PER 0AP1TA - Annua'. epprent canusptlnn of aamaertcal nedcal rnrte r pemneently etaffed by A phyican (hat by a ediael primary energy (eel end lgnite, petrlram, naturel ga and hydra-, nalear as uratant, nurse, aditfe, etc.) ohich affer tt-patIent atoe d.tiaon ad ard geothermal electrlcty) In kilogra nao t o l alent yen capita; provide a lmited range o dal faaalities. Var etaral purpases 1960, 1970, and 1980 data. urban hopitala Inalude WHla principal/g~naaral besprals, red raral huepials, Loal nr rr lptale and m sdiadl art mat.rnity wante. PPULATION AND VITAL StATISTICS Specialiad hospitals ure included nly under total. To-t1a Populatton, Mid-Year tucendl) - As nf July 1; 1960, 1970, und 1961 bIsslon per oieltal Bed - Total nuaber at edeboelans tn ar diecharges tdas. 1roalnnoppItalt dtvided by thr number f bde. Urban Pe)lon (percent et totalt - Ro nf urban to total population; differont detnitLnas at urban Area .uy effect coaparshllity ni data HdUt1NG anong countries 1960, 1970, and 1981 data. a~ tole Sim of Hohold (mnrsono par household) - aorea, urban, end wr PopulatIon Prolaations -llAi hoed caosst of ar gru 000 aIndividaualswho sare 11ivtng quaertere Pou lation yyar 2000 - Current poptultion proja.tions one baaad on 1990 and th.rr eain sol. A b.arder ar ladgor eay ar ay tot b. inludra In to lipoliaoy age and rar ond their eort.lity and frtillty ahe hosh.ld for stati.tca l puraosa. rater. Prajrtion paranete far .wralty raaee eryna- e of thra ege9nabr of e pe raa- aoal. urban, ond raral anaragé nuabtr lanes asruming lide eapectoncy at barth incereasng withncontry'e pr of peraena ar room Ib 011 urban, ond rural ocupted conventional cepLte incoae lael, and feral lIfe exPe,tanay et#biliina et 77.5 dellingn, ra.peartivly. -wltd.ngs salude tn-p.r-sneart strat.re ad ysars. Tha paraetøe for fartiliy rAt, al#o ha threg laelo uno,anpiad parts. asrumtng daaline In fertility according an Income leval ond post fanlly Aceoa an Elctricity (erena al dwellinoe) - total, urban, and yra - planning perior-uce, Ech ountry 10 aben ash. gnad one ef rheae nin. onetinal d-elling. cIty olectracity in ivin quarte s pretage tobinations of cortaltay and I.rtLlity trende ton projectin purpoes, ef total, urbon, end ruyal dwellinge repeatively. Stationary eolain - In a ationany ypulation therr Ic oa grth ainae aha birth rate le equal to the death rate, and alen the ego EDUCATION etrantura reain aoneaana. bt ie acieerd only a ftr fertlit rat Adju.td E.nlleent Riotts deolana ar abe rsypaeaent level of unit net reproduction rae, ahan Primary school -naal, .le and fumale - Gr.s total, sal. ad female eacn generation of omen replaces it.elf exactly. The stationary enrolloet oI all oges an the primary Level Ae percentages et re'pective population siae a erated oanne basi of aha yrojecrad charoater- rimar y school-age populationu; noma-lly includs ahildren agad 6-11 IstLsa of the populaton in abc yer 2111, and ahe rate et dellin of yrare but odjusted fr diffrant lengtha of prirry edrcation; or fertility rate to repltceent Level. co tnrs uth universal rdaatlonenrullment nay exceed 100 percent year stationary population le reached - The year when stationary since se pupila ero belo r a.bova the official school ege, populatioa ".e will be rahed. Seoondary chool - not, rate and female - Compated asaboveeondary Popularin Dni ry wdation rqrea at lDena our years of epproved primary instruction; Per s . ke. - Mid-year population per square kilonater (100 hectares) af provide general, aaaational, er acher treaig intructi.n, for toal avea; 1960, 1970, and 1980 data. yupilr uraaly or 12 an l7 year sn o age; correspond.,.e ouree are Par el. ko, aericultural land - Co.puaed ae above for egricultural Land generally excludd. ooly; 1960, 1970 end 1960 dra, vocataol enrollmena (eraenat oecondary) - Vacatonal inatitutiona Populabion br Structare (peraant) - Children (0-14 yrarr), working-ago (15- includc tecanioal, industrtel, or other prograna ehich opera independ- ka years), aad reLred (k5 yeare and er) as percentagoa of mid-year ntly ar os depart,ent f secondary Inetitutieon. papulatio; 1960, 1970, and 1981 deta. Pupil-teachar ratio - primary. and secondary - Total studentr rnrolled in Population Grofth Rfoto" rent) - total - Annual growh ratea af total mlid- yrimary and econdary levela divided by nubers of teaera In ah cor- year popultn far 1950-kl, 1960-70, and 1970-81. responding levela. Populaton Groeah Rar (cent) - rban- Anoual gtowth rator of urban Pdult literacy r a roent) - Literate aut (able to .rad cnd e rit) ar populations 2r 1950-60, 1960-70, ad 1970-81. a percentage ar tnol aduet populatIon ad 15 year and cove. Crude Birth Rate (pesrro d) - Annual live birth per thousnd af nld- yrar populatin; 1960, 1971, end 1981 date. COhSUMPTION Grade Death Rate (car ahousand) - Annual deathe per ahoucond of nid-year aenoer Car ( housand opulation) - .a.gr war. comprtse owtr population; 1960, 1973, and 1981 data. care 110n leo when oigha pteson;.exlude eebulanes, h-.e end GroseReroductionRats - Avroa nueber of doughtars a uon will bear in military aehaaler. her normal rprodctiv perlod i she exporiencer present age-apecific hadto Reaeiver (ltr ahounand populaaion) - All typas af recee for radIo frtlity nre ; uwlly fivr-year aweragec ending in 1960, 1970, and broadcaat le general publlc per thousand af papulation rxcludee un- 1981. licensed receivers in ountrles and in yrarg when regtstration ef radio Family Planning - aeptors, Anoul (thoueands) - Anual numben ot acceptors res wa inffet; data for recent yerns may nat be comparebleinceama at bith-control denices under auspicea oI ationrl family planntng oun alrabalihed lensing. program. 00 ORoeyavers en ayoa.ond populaion) - TV receivere for broadcAt to F anilyPlannna-Ucse ar percn t farriet women) - Perrntage at manrred genrral publi pe jr ahousand royalealeon; excludes unlitcensed TV reaceivera eomen el chtld-berring age (15-44 yearc) whoo ue birth-caoroi neviesra. lnacounetre adI, yarr when reg ItrcIon oa To eas as nefet oIl .rred woeinan ae age group. eSpaper Iration (por nhouan populatIon) - Shows the average 7D AND NUTRITLON circulaTo, o ly genrn Inaereaa neapapr, defined aSe y p odial Inden of Food Pdutin, pe oCpit (19697l-10 - Index 0f pen canitu publicton d,evntud primari ly ao nrerning aenaral neas . Oa le aonalderoa annuaprodctiontof allo commdties Pr a ducten axclude sed a to be "daily" ti I a pprars a leastoureaeek. aeed and 15 an wledar yea bas. Comtodiie cver rimalry goodr (e,g, Canea Annual atonduncer CapItaer earn-Bsed to te number of augaane inetead at eugar) ohach are edable andrcntain nuariont (eg, aliket rold duang t pyar, inaladIng aisrons ar drive-In ainea and roffe and e. are excluded,g). cAg r productlon of eh counar y to nobile nai. ba,ed an national averege produaar pric nalghte; 1961-tt, 1970, and 1011 data. A100 R ORCE Per capitae supply at caleres (parcena ni rquiraee - Computed from tl 1.aor Faor (thoutends) - Eonolly active persaos, Includano oased energy equivalent of net fond aupplies lcble in country per oaptau pr forces and unerployed hun excludIng housewias , Ftudentc, etc., corig day. Aailable supPlites aprifs domestio prodatton, Imports esa pepulation f al1 agrs. Definntions in narnoaa cutrler are not sporte, end changes ja stock. Net supPlies etxlude anal feed, see, aomparable; 1900, 1970 and 1661 dato. quantittes used in food proceng, end lasser in distribution. remale (pa-nn) - Female labor force ae percentage ef total labne toras. Requaremoents teas estmated by FA0 based an physological neede fon narnal Agriculturej(percnt) - Labor force in fareing, fareatry, hanttag rad aottvity and health considerine nVironaental temperatre, body weighte, fishing ah penveae of toa labor force; 10, 19710 and 1981 data. ags and ren ditrabato of atppoulation, and allowing 10 yscaent torcoar _Industy (p.rcent) - taber forar an manangr, onstrun % co, aaeufaurang at h.oushold level; 1961-65, 1970 snd 1981 data, end eetoic , watr and gas nr pernago atotl labor furae; 1960, Pen caito a suppl oproein (rae per da1 - Protein centen af per capita 1970 and 1961 daoa tl aupply ot tand pr day. Nen supply at food Is definad a ahoor, Participation Rate (percent) - ra, male, ond iea - Participation er Requirementa for alt cuntrire establiashed by USDA proeade for tinta atavityt ra|:ea are aonputod ar rotal, eale, and fesalo labor farce ar alloace at bl grane at total pratean par top end 20 grat of aial and percenageat ofaroal, male and fetale populoaain of all ages nrspectvel y; pulse proteun, at which 10 grame should be animal proein. Thear 1960, 1970, and 19B1 dato. These are boret on IL's parrtaipation raee steadad are lower thaen thoee of 75 grabe af total protnan td 23 gra-c relectIng a-exastructure of the poputian, and lang rte trend. nf aniael protein oa an aerage for the eorld, Praponed by FAO in ahe few esttmatis are fre national s or. Third Wrld Fod Surney; 1961-65, 1970 and 1980 datc. Economie Dependency Ratto - Rto af populatin under 15 and 65 and over to Per cata protein supply from animal end pulse - ProtrIn supply at ftad the otal lahor force. derived fata aniale end pulsra in area per day; l96I-65, 1970 and 1977 data. INC0.E DISTRIUrION Child (aes 1-61 Dath Rats (pr thousaen) - eAnual death. pen thoaand in Pecnag Private mama (b.th tn ch aad kind> - Reved by riohest 5 a group 1- yeare, ta children in thi. age group; Ior ast devloping percent ricesa 20 parcant, poret 20 percent, and pooreet 40 perceat ef coontries data derved froe life tables; 1960, 1970 and 1981 data. householde. HEALTH POVERTY TARGET ROUPS L9ie Expectaey a Oirth (yeare l - veragr numbr at ynaro of Life ralning The tolaowing timates are very pproxi-at' easure. of poverty level&, and ar birth; 1960, 1970 and 1981 dato, ehould br inter pret ath csaidnerabl oatien. Infant 4ortalitn bane (Per thousand)I - Annual deahs at infanto under ao gatimated Absolute Poverty Income leval (US$ per capita) - urban and rural - yra r a age par thoan d live birth,; 1960, 1970 and 1981 data. Abealute poverty ino-e level ia that ancom levl below which a inal Acceas af Safo Water (pecent of population) - total, urban, and vural - nutrit< oally adequate diet plu esontial non-food requirements s not Nunber af people (total, urban, and rural) with reonable access to rafe affordale. -aer aupply (inalures treated surfae waers or uncreated but timaated Relanive Ponerp Inomne Level (US$ per cara), - an d rural - u n rd _ at uch a t t ron protcted boreholes, springs, and Rural relatve novery Income level is onblhrd or arage par capita eantaary el a pracenragas at their res peti a pcpulations. In an personel incoma a the country. Urban level i, derved frm th rural urban area a public fountain a r standpost located not .ore than 200 Metera levl i adjustaent for hIghe coat of lving in urban arses fren o houebea h canatdere a eing n tthin reagonable access of n haa Estimated PoPulatIn ne ebeolute Pertyn Income lane ( -peraent) - urban haner. Incoral aren reaonabl ea ould imply thot the o tf cr and rural - Per.c af papulatian (urban und rural) who are abeoluae ,ebers of th, hosehld do not hav to speand a disproportionate part o the day in fething the family'e at er need,. acces. no Excreta Dioeal (percet fppulatenn - notal, urban, end rural - Number nf poople (total, urbcn, ond rural) served byaera diapoal aa percntagee af thear repecntn populationa. Ex,rta disposal toy nlde the colle leti and diapoeal, wiah or w athout ranment, of EcZonic and Socaal Daa D1vision human excreta and saste-anr by water-borne syste- or the ae of pit Enomie Aalyais and Projections Departent privles and imilar anstallations. May 1983 - 25 - AME= I Page 4 of 6 1UTISIA - EOWKC DVIO= PoAsultion: 6.5 million 1Ar981) GNP per Capita: $1,420 (1981) Aamal Growth Rates hAuMnt (at 1980 prices) (million US$ Actual Estite Projected Indicator at current prices) 1982 1977 1978 1979 1980 1981 1982 193 1984 1985 1986 NATIDMIL ACODMUS Gross dmstic product 1/ 7,905.9 5.3 7.1 7.1 6.0 5.0 1.5 4.5 6.0 5.8 5.6 Agriculture 1,005.6 -10.2 4.5 4.8 6.1 6.6 -8.7 0.5 4.0 3.9 3.7 Industry 2,485.0 9.8 9.0 11.9 9.9 1.6 0.0 6.9 7.3 7.0 6.7 Services 3,370.7 5.6 7.4 8.7 3.9 8.3 4.9 3.9 6.1 5.9 5.7 Consimption 6,297.6 10.4 5.8 4.6 9.9 7.2 4.7 4.9 7.3 6.2 3.9 Gross investment 2,370.1 6.9 12.9 3.9 5.8 14.5 -3.7 -4.3 1.2 1.0 1.8 Exports of goods and NFS 2,903.3 5.5 8.2 23.3 0.7 3.0 -6.5 4.2 7.2 8.3 13.7 Inports of goods and NFS 3,665.1 16.7 9.6 14.3 7.2 13.0 -3.2 -1.2 6.3 5.9 7.4 Gross national product 7,948.2 5.8 7.9 7.5 6.5 5.2 1.6 4.2 5.9 5.6 5.3 Gross national savings 1,650.6 -7.2 14.8 21.8 -7.2 -1.1 -10.8 -5.4 0.5 3.1 11.5 PRI(ES GDP deflator 76.0 80.1 88.3 100.0 110.9 124.9 140.5 Exchange rate 2.33 2.40 2.46 2.47 2.03 1.69 1.47 Share of GDP at market prices (%) Average Aual Increase (%) (at current prices) (at constant prices) 1971 1976 1981 1982 1986 1991 1971-76 1976-81 1981-86 1986-91 Gross donestic product 1/ 100.0 100.0 100.0 100.0 100.0 100.0 8.8 6.0 5.3 4.9 Agriculture 18.8 18.1 13.6 12.7 12.5 11.7 8.2 0.4 2.7 3.5 Industry 20.6 25.9 32.1 31.4 30.9 32.2 10.2 7.8 5.7 5.8 Services 47.7 42.9 41.3 42.6 43.6 43.9 8.3 7.2 5.8 5.1 Cossption 82.0 77.5 76.8 79.7 81.5 78.4 9.6 7.5 5.6 3.8 Gross investment 20.0 30.4 32.2 30.0 25.9 25.5 14.1 8.6 0.6 4.2 Exports of goods and NFS 23.8 29.1 42.1 36.7 41.4 41.3 5.6 7.9 8.2 6.3 Imports of goods and NFS 25.8 37.1 51.1 46.4 48.9 45.1 13.1 12.1 5.6 4.0 Gross national product 99.6 98.7 100.9 100.5 99.6 99.2 8.5 6.5 5.4 4.9 Net factor incne -0.4 -1.3 0.9 0.5 -0.4 -0.8 - - - - Gross national savings 17.6 21.1 24.1 20.9 18.0 20.8 2.9 3.4 2.9 8.8 As % of (DP (at current prices) 1971 1976 1981 1982 PUBLIC FINAJKE Current revenue 21.4 24.2 30.0 32.6 Current expenditure 18.9 18.5 22.4 24.9 Surplus (+) or deficit (-) 2.5 5.7 7.5 7.6 Capital expenditure 6.9 11.4 9.2 9.8 Foreign financing 3.2 1.7 1.4 1.9 T 1971-76 1976-81 1981-86 1986-91 CLHER INDICAMDRS GNP grw rate (%) 8.4 6.5 5.0 4.9 GNP per capita growth rate (%) 5.4 3.1 2.7 2.3 I(DR 2.7 5.4 6.0 5.4 marginal savings rate 24.0 26.0 12.2 24.4 Import elasticity 1.51 2.02 1.06 0.82 /1 CP at market prices and components at factor cost. EMA CP II-C Ntv 1984 - 26 - AN I Page 5 of 6 MIWA - SOmLM UU Population: 6.5 million (id-1981) CHP per Capita, $1,420 (1981) Innual Growth Rates Awunt (at 1980 Prices) (Million US$ Actual Estimate Projected Indicator at current prices) 1982 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 FUnRSNAL TRAWE Merchandise exports 1,989.2 9.7 9.6 20.7 0.8 3.3 -4.6 8.0 7.1 8.6 16.0 Crude oil 866.8 12.4 12.8 12.4 0.2 -8.8 -22.4 8.4 -1.8 1.8 -0.1 Other primary 97.3 4.9 -15.7 25.1 -11.9 -0.4 -17.9 -2.7 8.3 8.2 8.2 ufactures 1,025.1 6.8 10.4 33.3 3.6 20.3 15.2 8.6 14.1 13.2 26.3 2/ Merchandise imports 3,263.9 14.1 10.7 15.7 7.7 9.5 -5.5 -1.1 6.1 5.6 7.7 Food 367.4 9.b 7.7 39.6 -6.8 14.3 -5.0 9.1 2.7 5.3 5.0 Petroleam 383.1 13.8 15.1 9.7 13.5 4.9 -34.7 4.4 11.3 8.2 21.7 2/ Machinery and equipment 846.5 5.5 15.4 -2.6 -4.4 4.1 -2.4 -11.1 -0.7 0.0 0.0 Others 1,666.9 21.6 6.5 24.9 15.3 0.0 5.6 18.2 7.8 7.0 5.6 Price Index PRIES Export price index 54.8 58.7 75.5 100.0 117.4 122.9 122.7 131.9 141.9 151.9 Import price index 72.6 76.6 85.3 100.0 114.4 121.2 131.8 143.3 155.5 167.4 Terms of trade index 75.5 76.6 88.5 100.0 102.6 101.4 93.1 92.0 91.3 90.7 Ccmposition of Merdiandise Trade (%) Average Annual Increase (%) (at current prices) (at costant prices) 1971 1976 1981 1982 1986 1991 1971-76 1976-81 1981-86 1986-91 Exports 100.0 100.0 100.0 100.0 100.0 100.0 4.1 8.6 10.2 5.7 Crude oil 24.5 40.9 51.5 43.6 34.1 28.7 4.6 5.8 1.2 -0.1 Other primary 19.2 13.4 5.0 4.9 4.4 4.3 -5.4 -1.9 12.7 5.1 Maufactures 56.3 45.7 43.5 51.5 61.5 67.0 6.4 14.1 17.6 8.1 Imports 100.0 100.0 100.0 100.0 100.0 100.0 13.1 11.5 5.5 3.9 Food 21.2 12.3 11.2 11.3 10.1 6.3 0.6 11.9 2.6 -5.3 Petrolaun 3.9 11.1 19.0 11.7 22.7 30.6 29.2 10.9 9.7 8.6 Machinery and Equipment 30.1 31.9 25.2 25.9 17.4 12.8 13.5 8.7 -1.2 -1.0 Others 44.8 44.7 44.6 51.1 49.8 50.3 10.6 13.5 7.6 4.8 Shar of Trade with Share of Trade with hare of Trade with liare of Trade with Industrial Countries ( Developin Countries ( Oil Ex2oters % Centrally Plamed Countries (%) 1970 1975 1980 1970 1975 1980 1970 197_ 1980 1970 197 1980 DIfECION OF TRDE Exports 70.8 60.1 68.7 4.9 21.7 25.4 13.9 11.1 4.8 9.4 6.1 0.4 Imports 85.9 79.5 81.8 7.1 10.9 7.7 0.7 6.3 7.5 6.3 3.1 3.0 1/ Constant price data at 1980 prices. 2/ Increase in refining capacity. EHMA CP 2C May 1984 - 27 - MEE I Page 6 of 6 nu U»n at cra ~ i U) P altin:· 6.5 million (gidBe9l) GNP par Capita. $1,420(18 A91 17 ctual Etite Pojtd 1971 1976 f1979 I 1981 1982 1 9 1991 Net expots of gds 6 srvice@ -57.4 -417.0 -356.0 -472.6 -684.6 -718.4 -710.5 -938.9 -1,028.5 -1,350.0 !prts of g~ods & Saerices 469.4 1,479.5 3,137.5 3,912.3 3,948.4 3,338.9 3,256.0 4,352.6 6,023.9 11,107.4 Ifarts of od & gavices 526.8 1,8%.5 3,493.5 4,384.9 4,633.0 4,057.3 3,966.5 5,291.5 7,052.4 12,242.4 Net transfara 1/ 52.0 52.7 61.0 100.0 38.5 25.4 29.4 32.4 24.3 24.0 Cur~ wewm balmm. -5.4 -364.3 -295.0 -372.6 -646.1 -693.0 -681.0 -906.5 -1,004.2 -1,111.0 Direct private inm 27.6 102.6 50.9 236.0 367.2 338.6 242.5 350.0 400.0 500.0 LT ons (net) 55.3 167.8 479.3 322.8 282.7 354.4 400.7 669.3 773.4 871.0 Official 59.2 130.4 190.6 272.7 249.8 351.8 370.2 422.6 465.1 659.6 Private -3.9 37.4 288.7 50.1 32.9 2.6 30.5 246.7 308.3 211.4 ~ther cqrital 13.7 55.2 -111.3 121.3 101.9 - - - - - CLahg in res~rv -91.2 38.7 -123.9 -64.9 -105.7 - 37.8 -112.8 -169.2 -260.0 Internatioal reserves 114.8 304.5 415.5 455.7 458.2 478.5 440.7 Reaervem as ioth of i~&rts 2.6 2.2 1.6 1.4 1.4 1.4 1.3 Åetæl 21 1971 1976 1979 1980 1981 1982 GKES DISBUE S Official grants 35.5 50.2 50.7 41.5 20.3 25.4 Gros disbursenants of t42 lan 105.2 229.5 628.8 533.9 585.1 699.7 Ccessimal 61.0 104.0 139.5 216.3 236.3 329.2 Bilateral 52.8 95.1 138.7 196.2 230.3 230.0 MA 4.8 8.9 0.2 1.0 1.1 0.5 ~the multilateral 3.4 0.0 0.6 19.1 4.9 98.7 Noarcncessional 44.2 125.5 489.3 317.6 348.8 370.5 Private 28.8 60.1 370.7 188.4 199.8 226.9 Official eIprt credits 3.2 9.9 49.5 55.5 47.0 37.4 IED 12.2 25.3 55.4 51.1 69.4 83.4 Other multilateral - 30.2 13.7 22.6 32.6 22.8 E!8NAL DEU Debt Outstandi" and Disbursed 619.5 1,166.5 2,981.8 3,172.5 3,171.0 3,525.3 Official 440.0 971.9 1,823.0 2,017.6 2,133.9 2,485.6 IBRD 39.3 127.9 232.0 269.0 319.5 379.8 M 21.1 64.1 67.3 67.9 67.5 67.4 Other 379.6 779.9 1,523.7 1,680.7 1,746.9 2,038.4 Private 179.5 194.6 1,158.8 1,154.9 1,037.1 1,039.7 Undisursed debt 352.5 1,110.8 1,738.2 1,803.5 1,673.5 1,698.0 DEBr SERVIOE Total debt service payents 69.8 98.6 311.8 426.6 506.8 553.4 Interest 19.9 36.9 162.2 215.5 204.4 208.0 Pay~aets as % exports 14.9 6.7 9.9 10.9 12.8 16.6 Paents as % QiP 4.1 2.2 4.3 4.9 6.1 7.0 Average interest rate of new ns (%) 4.9 5.4 7.1 6.9 8.3 6.8 Official 4.6 4.3 5.6 5.9 6.9 - Private 6.1 7.9 9.8 10.5 12.7 - Average maturity af new loa (years) 23.3 16.6 15.8 17.2 15.4 16.9 Official 26.2 20.4 19.4 19.4 18.2 - Private 13.8 8.6 9.2 9.2 5.8 - As % af Debt Outs~tdixg at Edf M:ust Becent Year (1981) DEBT S ~1RE Maturity structure af debt outstanding (%) Amortization due within 5 years 37.7 A~urtization, due within 10 years 65.6 Interest structure of debt oattanding (%) Interest due witnin first year 4.3 1/ Includirg grnS. 2/ Preliminary estimntes fc 1982. EMENA CP 2C May 1984 - 28 - AlU I1 Pag 1 of 2 VE Smm oF ais GUP OPLMTDB IN alsuA A. SrATIENT OF BANC ILOAN AID IA aMDI (As of March 31, 1984) US $ million Loan ar Amug (Lss Credit CIncellation) tMber - Year Barrower Pro Bank M Ukdisbursed Forty Loans and Credits Fully Disbursed 366.89 75.2 1188 1975 Republic of 1unisia Second Hig)mys 28.00 7.95 1431 1977 Republic of Tunisia Irrigation Developuent 42.00 5.34 1445 1977 SOiE Fourth Water Supply 21.00 2.60 1601 1978 Republic of Tunisia Rural Roads (Third Hiways) 32.00 19.55 1675 1979 Republic of TAisia Second Urban Sewerge 26.50 15.65 1705 1979 Republic of Tunisia Secord Urban Devloect 19.00 13.08 1746 1979 Republic of Tunisia Second Fisheries 28.50 19.80 1796 1980 Republic of Tunisia Southern Irrigation 25.00 19.64 1797 1980 Office des Ports Natiasac Third Port 42.50 12.60 1841 1980 Republic of Tunisia Fourth Bigimys 36.50 31.24 1864 1980 Socidti Tunisieme de 1'Electricitf et du Gaz Secord Natural Gas Pipeline 37.00 18.91 1885 1980 Banque Nationale de Tnisiae Third Agricultural Credit 30.00 20.73 1961 1981 Republic of Tunisia Fourth Education 26.00 23.88 1969 1981 Republic of Tunisia Snall-Scale lustry Developm: 30.00 28.33 1997 1981 Republic of Tunisia Nordaest Rural Development 24.00 19.22 2003 1981 Socidt u Twsisieme de 1'Electricitd et du Gas Third Power 41.50 33.55 2005 1981 Republic of Tunisia Health and Population 12.50 11.53 2012 1981 Republic of Tunisia Textile Rehabilitatimn 18.60 4.49 2052 1981 Republic of Tunisia Grain Distribution and Storage 42.00 41.23 2108 1982 Republic of Tunisia Fifth Rignay (Rural Roads) 35.50 34.98 2113 1982 HE Electrical and Mechanical Idusrries 30.50 20.56 2134 1982 SIE Sixth Water Supply 30.50 20.90 2157 1982 Republic of Tunisia Irrigation Developivent 22.00 21.26 2197 1982 Republic of Tunisia Technical Assistance 4.50 4.20 2223 1983 Republic of Tunisia Urban Development I 25.00 24.63 223D 1983 Republic of Tunisia Education V 27.00 26.60 2234 1983 Republic of Tunisia Central Tuisia Irrigation 16.50 16.17 2255 a/ 1983 Republic of Tunisia Urban Sewerage III 34.00 34.00 2289 a 1983 Republic of Tunisia Sfax Flood Protection 25.00 25.00 2301 '/ 1983 Republic of Tunisia Industry (IV) Foundry 16.80 16.80 2346 8/ 1984 Replic of Tunisia Mining Technical Assistare 13.40 13.40 2386 a/ 1984 Republic of Tunisia Seventh Water Supply 50.00 50.00 TUTAL 1,260.19 75.2 Of uhich has been repaid 158.86 8.1 Total no outstanding 1,101.33 67.1 Anamt Sold 14.33 of which has been repaid 14.33 1,101.33 67.1 Total now held by Bank and IA b/ Total Undisbursed 657.82 a/ Not yet effective 6/ Prior to exdhange rate adjustnet The status of the projects listed in Part A is described in a separate report on all Bank/IDA financed projects in execution, whid is updated twice yearly and circulated to the Executive Directors on April 30 and October 31. - 29 - ANNEX II Page 2 of 2 B. STATEMENT OF IFC INVESTMENTS IN TUNISIA (as March 31, 1984) Amount in US$ Million Year Obligator Type of Business Loan Equity Total 1962 NPK Engrais Fertilizers 2.0 1.5 3.5 1966 Socidtg Nat. d'Invest. Dev. Finance Co. 0.6 0.6 (now BDET) 1969 COFIT (Tourism) Dev. Finance Co. 8.0 2.2 10.2 1970 Socidt6 Nat. d'Invest. Dev. Finance Co. 0.6 0.6 (now BDET) 1973 Socigt6 Touristique Tourism 1.6 0.3 1.9 et Hoteli6re RYM SA 1975 Soci6t6 d'Etudes et Tourism 2.5 0.6 3.1 de D6veloppement de Sousse-Nord 1974 Industries Chimiques Chemicals 0.6 0.6 du Fluor 1978 BDET Dev. Finance Co. 1.2 1.2 Total Gross Corimmitments 14.1 7.6 21.7 Less Cancellations, 11.4 1.8 13.2 Terminations, Repayments, and Sales Total Commitments now 2.7 5.8 8.5 held by IFC Total Undisbursed 0.0 0.0 0.0 - 30 - Annex III Page 1 of 2 TUN]ISIA SECOND URBAN TRANSPORT PROJECT Supplementary Project Data Sheet Section I: Timetable of Key Events (a) Time taken by the country 11 months (January-November 1983) to prepare the project: (b) The agencies which prepared Highway Department (DGPC) of the the project: Ministry of Public Works and Regional Transport Company of Sfax (SORETRAS), with consultant assistance (c) Project first presented to the October 1982 Bank and date of first Bank mission to consider the project: (d) Date of Bank appraisal October and December 1983 mission: (e) Negotiations completed: April. 1984 (f) Planned date of loan December 1984 effectiveness: Section II: Special Bank Implementation Actions None Section III: Special Conditions 1. Special Conditions of Effectiveness (a) Execution of a Subsidiary Loan Agreement between the Government and SORETRAS (para. 51); (b) Approval of a sector training program proposal and specific plan of training activities for 1985, and assignment of a training administrator and appointment of a training expert (para. 57); and (c) Payment by the Government to SORETRAS of compensation for social tariffs for the period January 1 - September 30, 1984 (para. 60). - 31 - Annex III Page 1 of 2 2. Other Special Conditions (a) Required cofinancing for the training and technical assistance component would be available by March 31, 1985 or the Government would, by that date, provide the funds from other sources (including, if need be, its own resources) (para. 51); (b) An Interministerial Coordination Committee for Urban Transport and its technical unit in the Ministry of Transport and Communications (MOTC) would be maintained (para. 56); (c) The MOTC would prepare and present the results of studies on productivity, fares and finances of regional transport companies and on involving the private sector in the provision of urban transport services to the Bank for review by September 1 and June 30, 1985, respectively, and implement the agreed program in each area according to a timetable satisfactory to the Bank (para. 58); (d) SORETRAS and the Government would take all necessary action to implement an agreed financial action plan for SORETRAS, and SORETRAS would (i) maintain a working ratio of no more than 0.70:1 on its urban passenger services after 1988; and (ii) submit to the Bank for review by September 30 of each year its investment plan and financial projections for the next five years (para. 60); and (e) The Municipality of Tunis would prepare and present to the Government and the Bank for approval a draft parking management plan by May 1, 1985, including measures concerning extension of the parking meter program and realignment of parking meter rates, and implement the agreed plan according to a timetable satisfactory to the Bank (para. 61). 瀾 0t0 10 1. TUNISIA X20 ARIANA GREATER TUNIS LOCA Tunis Airporý LOCATION OF PRIMARY ROAD IMPROVEMENTS J, iir , SECOND URBAN TRANSPORT PROJECT PROJECT: Rocids Interchanges Vioduct Sub-Components,_ A Interchange GP8/GP9/X2 p19 VoieX2,betweenGP9andGPIO A3 Interchange on Vbie Z4 at Palais des GP2 Congrås LA GOULETTE Viaduct on Avenue de la Rgpubljque (along voieZ4)over Avenue Bourguiba and _jý6ARDkj Metro Léger de Tunis. t TUMS Vdie Z4, from Rue cItalie to Pénétrante Sud Å DI VoieZ4,fromP4nétrcinteSudtoMegrine D2 Intercommunale Sud, between Z4 and Pénétrante Sud, between Z 4 and Sortie Sud MF6RINE I I-n b. r Måtro LégerckeTunis(PhaseI) Existing Roads Tý- RADE'_ Planneel Roads Built -up Arecis Saltlake ý 1, LJ N i S l A Internutioncil Boundarjes ALGERIA) BEN A-R 10 U 5 0 2 3 4 ------- KILOJVEIERS CDW 2- URYA