Ecuador - Second National Highway Project

RESTRICTED Report No. TO-422a This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION APPRAISAL OF A SECOND NATIONAL HIGHWAY PROJECT ECUADOR May 15, 1965 Department of Technical Operations  CURRENCY EQUIVALENTS Official Rate (par value) U.S. $1.00 = Sucres 18.00 S/ 1.00 = U.S. $0. 0555 S/ 1 million = U.S. $55, 500 Free Market Rate U.S. $1.00 = S/ 18.60 S/ 1.00 = U.S. $0.054 Fiscal Year January 1 - December 31  ECUADOR SECOND NATIONAL HIGHWAY PROJECT TABLE OF CONTENTS Page SUIvARY i I. INTRODUCTION 1 II. BACKGROUND INFORMATION 3 A. Geographic and Demographic 3 B. Modes of Transportation 3 III. THE HIGHWAY SYSTEK 5 A. Condition and General Classification of Roads 5 B. Highway Management and Ministry of Public Works 5 C. Growth and Characteristics of Vehicle Fleet 6 D. Performance on the First National Highway Project 6 E. Second Highway Development Plan (Loan 176-EC) 9 IV. THE PROJECT 10 A. General Description 10 B. Completion of First Highway Project 11 C. Highway Maintenance Program and Costs 12 D. Second Project Design, Costs and Execution 12 E. Engineering Services and Costs 1)4 F. Summary of Costs; Project Staging 14 G. Financing Plan 17 V. ECONOMIC JUSTIFICATION 19 A. General 19 B. The Project Roads 21 C. Highway Maintenance 23 VI. CONCLUSIONS AND RECOMMENDATIONS 25 Table 1: Motor Vehicle Registrations (1951-60) and Projected Growtb Table 2': Recommended Design Standards Table 3 : Four-Year Maintenance Program Table 4 : NTew Construction Costs Table 5 : Engineering Services Table 6 : Financing Plan Map: Ecuador; Main Highways  ECUADOR SECOND NATIONAL HIGHWAY PROJECT SUIlIIA2Y i. The Government of Ecuador has requested the Bank and the Association to assist in financing a highway project comprising: a) The completion of roads in an earlier Bank-financed project (Loan 176-EC). b) The continuation and expansion of the highway main- tenance program over a five-year period. c) The completion of construction or improvement of a further 502 lIm of trunk roads.. d) Engineering services in connection with the project. ii. The total cost of the project, including the local currency compo- nent of maintenance, is Usj,:55.o million equivalent; the foreign component of cost is USD23.8 million equivalent. iii. A Bank loan to Ecuador of US'j?14.5 million in 1957 (Loan 176-EC) provided for the construction of four trunk highwiays totaling 538 km in length. The construction of one of the four roads was made contingent on the availabili of loan funds and satisfactory progress on the rest of the project. The U.S. 'Development Loan Fund also participated with a loan of US