Colombia - Seventh Highway Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P -2OQ66.CO REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF COLOMBIA FOR A SEVENTH HIGHWAY PROJECT June is, 1977 This document has a restricted distribution and may be used by recipients only In the performance of their oflicial dudes. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (Estimated as of June 1977) Currency Unit - Colombian Peso (Col$) Col$1 - US$0.0272 Col$1,000 - US$27.17 Col$1,000,000 - US$27,174 US$1 - Col$36.80 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS DAAC - Departamento Administrativo de Aeronautica Civil. ER - Economic Rate of Return FONADE - Fondo Nacional de Desarrollo Economico FYB - First Year Benefit GDP - Gross Domestic Product IDB - Inter-American Development Bank MOP - Ministerio de Obras Publicas (up to January 1976) MOPT - Ministerio de Obras Piblicas y Transporte (after January 1976) NPO - National Planning Office UNIDO - United Nations Industrial Development Organization VOC - Vehicle Operating Costs REPUBLIC OF COLOMBIA'S FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY Page 1 of 2 COLOMBIA SEVENTH HIGHWAY PROJECT LOAN AND PROJECT SUMMARY Borrower: The Republic of Colombia Amount: US$90 million equivalent Terms: Repayment in 17 years including 3-1/2 years of grace and interest of 8.2% per annum. Project Description: The project would include: (a) a rehabilitation program of about 978 km of paved trunk roads; (b) a vehicle weight control program, incuding installa- tion of about 20 weighing stations; (c) a highway maintenance program including acquisition of about 800 units of highway maintenance equipment, spare parts as well as workshop equipment and store extensions; (d) logistic support to the project, including the purchase of vehicles, road marking, laboratory and drilling equipment; and (e) technical assistance. Estimated Cost: (US$ Million Equivalent) Local Foreign Total Road Rehabilitation Program 40.95 41.10 82.05 Vehicle Weight Control Program 2.85 4.00 6.85 Highway Maintenance Program 1.10 23.60 24.70 Transport Sector Management 0.25 1.00 1.25 Logistic Support - 0.70 0.70 Total Base Cost 45.15 70.40 115.55 Contingencies 17.85 20.35 38.20 Total Project Cost 63.00 90.75 153.75 Percent of Total Cost 41 59 100 Financing Plan: --------(US$ Million)------- Local Foreign Total Bank - 90.00 90.00 Government 63.75 - 63.75 Total Project Cost 63.75 90.00 153.75 This document has a restricted distribution and may be used by recipients onily im the perfomance of rheir official duties. Its contents maiy not otherwise be disclosed withoet Worid Bank authorization.  Page 2 of 2 Estimated Disbursements: FY78 FY79 FY80 FY81 FY82 ---- (US$ million)---------- Incremental 15.0 28.0 26.0 15.0 6.0 Cummulative 15.0 43.0 69.0 84.0 90.0 Rate of Return: The average weighted rate of return for the project as a whole is estimated at over 90%. Appraisal Report: June 16, 1977.  INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF COLOMBIA FOR A SEVENTH HIGHWAY PROJECT 1. I submit the following report and recommendation on a proposed loan to the Republic of Colombia for the equivalent of US$90 million to help finance a seventh highway project. The loan would have a term of 17 years, including 3-1/2 years of grace, with interest at 8.2% per annum. PART I: THE ECONOMY I/ 2. The latest economic report on Colombia (1548-CO) was distributed to the Executive Directors in May 1977. It assesses current developments and provide a medium-term perspective of the Colombian economy. Country data sheets are provided in Annex 1. Background 3. During the past two decades substantial structural transformation has taken place in the Colombian economy. The country has made impressive progress in the transition from a predominantly rural and agricultural economy made up of largely self-contained regions to an urban industrial economy, more oriented toward international trade. Broadening of the country's productive base has been accompanied by rapid growth of nontraditional exports (those other than coffee) and development of a modern sector which relies to a considerable extent on imported inputs. From 1967 to 1975 GDP rose by an average 6.4% per annum in real terms, well above the historical average of less than 5% (1950-67), and real per capita income increased by an average annual 3.6%. Two mutually dependent phenomena, increased investment and relaxation of the foreign exchange constraint, have been the major factors in bringing about this acceleration. Merchandise exports have expanded more than three-fold since 1967 and, most significantly, nontraditional exports have become an increasingly important source of foreign exchange earnings, growing from 27% of merchandise exports to about 50% at present. Much of this increase was the result of both product and market diversification, especially of manu- factured exports, as the share of total exports shipped to Latin American countries more than doubled. Despite the substantial progress, Colombia still remains essentially an underdeveloped country with a limited modern sector superimposed on a large, traditional, and poor base. 1/ This part is identical to the one contained in the President's Report for the Fourth Telecommunications Project (Report No. P-2008-CO of May 25, 1977).  - 2 - 4. When the present Government took office in August 1974, the country was faced with several adverse developments -- weakening balance of payments situation, impending loss of self-sufficiency in petroleum production, infla- tion, deterioration of public finances, and reduction in public investment -- which threatened to interrupt the high growth rate achieved by Colombia in recent years. The new administration embarked upon an economic stabilization program with the aim of restoring the basis for sustained economic growth. In line with this, it implemented basic reforms of the fiscal, monetary and price systems. 5. To help strengthen public finances, the new Government implemented a tax reform which covered almost every important component of the tax system and represented a significant improvement in terms of progressivity and elas- ticity. The Government also made certain changes in the financial system with the purpose of stimulating private savings and improving the allocational efficiency of the financial system. The action included a restructuring of interest rates, simplification of the complex reserve system, and elimination of many of the more rigid and cumbersome controls. 6. The Government also took steps to correct major distortions which existed in the price system. Price controls on a number of important agri- cultural products were removed. In May 1976, the Government introduced far-reaching modifications in its petroleum pricing policy which aim at regaining self-sufficiency in production of crude petroleum by improving incentives for exploration and exploitation. Under the new policy, foreign oil companies are now paid the international price of crude CIP Cartagena for new petroleum produced in association with the government petroleum cor- poration. (Previously the foreign oil companies received less than US$7 per barrel for new crude.) The Government is also encouraging incremental produc- tion from existing fields and, in this connection, eliminated the special petroleum exchange rate, effectively increasing the price of crude oil by about 20%. Furthermore, retail prices of gasoline have been raised in successive steps from US$0.11/gallon in August 1975 to US$0.27/gallon in January 1977, or by almost 150%. The Government proposes to continue this policy until the prices of gasoline and other petroleum derivatives approach international prices. 7. Economic growth slowed in 1975 (from 6% in 1974 to about 5%) and unemployment increased, reflecting both the impact of the stabilization measures adopted at the end of 1974 and the effects of the world recession. Towards the end of the year the economy began to recover, stimulated by increased exports, larger agricultural output and heightened industrial activity. The recovery continued in 1976 with real GDP growing by about 6%. During 1974-76 National Government savings increased substantially; due to the 1974 Tax Reform, tax revenues increased by over 40% a year while nominal GDP grew at an annual rate of about 30%. Private savings mobilized through the financial system also increased rapidly, growing by almost 50% a year during 1974-76. Moreover, the balance of payments turned favorable in 1975 as a result of the sharp increase in world coffee prices and expansion of  - 3 - non-coffee agricultural exports. The favorable balance of payments perfor- mance continued in 1976 with foreign exchange reserves reaching almost US$1,150 million, sufficient to cover over 5 months' imports. With increased export earnings, the public debt-service ratio declined from 17.0% in 1974 to 11.7% in 1975 and about 11.4% in 1976. However, despite strengthening of the Government's monetary and fiscal policies (which had reduced inflation from 27% in 1974 to 18% in 1975), the rate of inflation increased to 26% in 1976. Colombia, through a combination of domestic policies and fortuitous external developments, has come through the period of world recession and economic adjustment with a strong foreign exchange reserve position and a rapidly recovering domestic economy. Recent Economic Performance 8. The economic forces have continued to be favorable. Coffee prices are high and the balance of payments remains strong; foreign exchange reserves stood at more than US$1,400 million at the end of the first quarter of 1977, the highest level in Colombia's history. The increased demand generated by the higher incomes of the coffee producers has been a powerful stimulus to the economy. Real GDP growth in 1977 is projected at 7%. As a result, urban un- employment, down from about 13% in 1974 to about 9% by end-1976, is expected to decline further. 9. The inflow of foreign exchange from coffee sales has, however, led to a resurgence of inflation and this has prompted the Government to continue to give priority to short-term management of demand. Several measures have been taken. Legal reserve requirements have been increased and limitations on private external borrowing have been established. Import duties have been drastically reduced to shift part of the inflationary pressures to the exter- nal sector. Fiscal management was quite restrictive in 1976; the Treasury accounts had a surplus, which was used for repayment of the Government's short-term domestic debt. Almost two-thirds of coffee earnings are being kept from increasing the monetary base by measures adopted recently. 1/ The Government's liberalized import policy will (although with a lag) increase the supply of goods, thus dampening pressure on domestic prices. Nevertheless, inflationary pressures are likely to persist. Even after the sterilization measures taken, the record coffee export receipts will add to the monetary expansion. Furthermore, current price and cost trends (the Government is attempting to hold wage increases in the public sector to 18%, but private sector wages will probably increase substantially more) as well as "corrective" adjustments in public-service prices make substantial deceleration of price 1/ The measures are: 15% of payments to coffee producers to be made in three-year compulsory savings certificates; an increase in the coffee retention tax from 23% to 46%, and investment of a substantial portion of this tax, including the four percentage points received by the Coffee Federation, in Government bonds.  - 4 - increases unlikely during 1977. However, the rate of inflation is expected to decline over the medium term as the Government remains strongly committed to reducing inflation and its monetary, fiscal and trade measures begin to take effect. Although the reserves being built up during the "coffee boom" strengthen Colombia's longer-term prospects, the rapid increases in liquidity add toathe difficulties of short-term economic management and illustrate the special problems facing economies with a heavy reliance on a single export commodity. Although inflation needs to be brought under control, the economy seems now poised for a period of rapid growth. Development Strategy and Prospects 10. The Government's development strategy is embodied in the 1975-78 development plan. The plan aims at creating the conditions necessary for sub- stantially reducing unemployment through increased capital accumulation in the private sector, improvement in the efficiency of the price system in order to encourage more labor-intensive production techniques and expansion of public investment. The plan places increased emphasis on the need to strengthen public sector institutions; particularly, public enterprises are in the future to earn a satisfactory rate of return on their revalued assets and financial intermediaries are to maintain the real value of their capital. In terms of public investment, the main thrust will be on providing adequate economic infrastructure to stimulate rapid growth and employment in industry and agri- culture, as well as on socially oriented projects to help eradicate rural and urban poverty. Within infrastructure, special priority has been assigned to the development of domestic energy sources to help reduce the country's impending dependence on imported energy. Also, the Government continues to stress agriculture because it is in the rural areas where the greatest con- centration of poverty exists and in agricultural activities where increases in employment can be most quickly achieved. Commercial agriculture is to receive support due to its strong contribution to export as well as employment growth. A substantial portion of public expenditures is being reoriented toward nutrition and primary education programs which affect the productivity of the poorest 50% of the population. Policies for promoting decentralization of industry away from the largest cities have been adopted to accelerate inte- gration of more backward areas into the modern sector of the economy. 11. Colombia's strong balance-of-payments prospects for the immediate future should make it possible in 1977 for the country to resume the high rate of growth of GDP (6-7%) achieved in the early 1970s. Export prospects for the next several years are excellent, as world coffee prices remain strong and economic growth is resuming in the industrialized countries. With the contin- uation of appropriate incentives, minor exports should grow very rapidly once again. Manufactured exports--textiles, chemicals, pharmaceuticals, mechanical and electrical equipment, and paper products--are over the long-term expected to lead this recuperation, along with non-coffee agricultural exports. Given the improved outlook for coffee, Colombia is likely to maintain a favorable trade balance throughout the late 1970s. Under these circumstances an annual growth rate of GDP of about 7.4% is expected to be accompanied by a 10% annual  - 5 - increase of imports in real terms. In light of favorable external economic conditions and domestic policies the marginal savings rate over this period is projected to be about 30% and public sector savings are projected to be about 8% of GDP. However, Colombia's public sector investment program calls for a high level of expenditures if both economic and social objectives are to be fulfilled. Capital expenditures are expected to be about 10% of GDP. 12. Colombia is expected to require gross capital inflows of US$4.2 billion during the five-year period 1977-82, of which almost US$350 million will be disbursed from commitments made through the end of 1976. To attain this level, annual gross capital inflow will have to increase from US$421 million in 1976 to US$990 million in 1982. Direct foreign investment is expected to provide only a small part (8%) of the required capital inflow, with approximately 50% being provided by official multilateral and bilateral sources and the remainder by suppliers', financial and other credits from private sources. 13. Colombia's public external debt repayable in foreign currency amounted to US$3.3 billion at the end of 1976, or about US$2.6 billion excluding undisbursed commitments. The Bank Group's share of this external debt (dis- bursed only) as of the end of 1976 was about 28% and is expected to decline to about 25% by 1982. Service on this debt was about 11.4% of exports of goods and non-factor services in 1976, and is projected to remain at that level, assuming recovery of minor exports and the favorable outlook for coffee over the next few years. Balance-of-payments prospects beyond 1980 will depend to a significant extent on the results of petroleum exploration and on progress made in implementation of several resource-based export projects currently under preparation. The Bank's share of public debt service in 1976 was about 26% and is expected to decline marginally to 25% by 1982. With the maintenance of sound economic and financial policies, Colombia should have no difficulty securing or servicing the external capital it needs. PART II: BANK GROUP OPERATIONS IN COLOMBIA 14. The proposed loan, the 68th to be made to Colombia, would bring the total amount of Bank loans to Colombia to US$1,526.4 million (net of cancel- lations). Of this amount, US$1,040.4 million is now held by the Bank; IDA made one credit of US$19.5 million for highways in Colombia in 1961. Disburse- ments have been completed on 43 loans and the IDA credit. IFC has made effective investments and underwriting commitments of US$51.2 million in 23 enterprises and now holds US$28.5 million. Annex II contains a summary statement of Bank loans and the IDA credit as of March 31, 1977, and IFC investments as of April 30, 1977. The Annex also contains summaries on the execution of the 22 on-going projects. 15. Since FY68, Bank lending in Colombia has become more diversified and has been concentrated on production-oriented programs and activities which carried social as well as economic benefits. Eight of the eleven  - 6 - agricultural loans have been made since then, seven of the ten loans for industry, all three loans in the education sector and all six loans for water supply and sewerage. This compares with only seven loans since FY68 in the power and transport sectors. 16. Bank lending to Colombia in FY76 consisted of one loan for develop- ment finance companies totalling US$80 million. In addition to the present project, the FY77 program includes the recently approved Integrated Rural Development, Second Agricultural Credit, Fourth Telecommunications Projects and Second Small-Scale Industry Project. Work is also under way in nutrition and health, development finance companies, slum improvement, power, water supply and sewerage, tourism, mining, small farm development and agricultural extension for possible consideration by the Executive Directors during the next two years. 17. In lending to Colombia, the Bank tries to assist the Government in achieving four major objectives. These objectives are interdependent and complementary. One objective is to spread the benefits of growth more widely than before and, more particularly, to attack directly the problem of rural poverty. A second objective is to help Colombia expand output, including exports, by supporting projects that directly or indirectly make large contri- butions to production and employment. A third objective is to support programs that will bring about improvements in the management of the economy and, par- ticularly, that will help to strengthen public institutions and financial intermediaries. A fourth objective is to transfer sufficient external re- sources to complement Colombia's domestic savings and provide the necessary funds for maintaining an adequate level of economic and social investments in a framework oLsound domestic finances and a viable balance of payments. 18. While the last objective primarily influences the magnitude of the Bank's program in Colombia, the other three jointly determine its composition. Naturally, many operations serve more than one of the ends listed and may, moreover, support more specific Government objectives. Thus, the Seventh Highway Project will help Colombia expand output, including exports, by improving the efficiency of the trunk highways, the backbone of the transport system and the principal link to the country's ports. In addition, the proj- ect will support the Government's efforts to strengthen transport planning and to improve highway maintenance practices. 19. The operations of external lenders in Colombia are shown in Annex I. While IBRD, IDB, and AID provided about 75% of total external financing to Colombia in the 1961-72 period, their share has decreased since then to approximately 40%. Like the Bank, IDB and AID have given increased emphasis to social projects. For instance, the IDB has assisted projects in low cost housing, rural development, agrarian reform, university education, water supply, and land erosion. AID has supported programs in education, urban development and small farm development. More recently, it has moved to small project loans aimed chiefly at improving the distribution of income. It is expected to phase out its aid program in Colombia in the current year.  - 7 - PART III: THE TRANSPORT SECTOR The System 20. Colombia has coastlines on both the Pacific Ocean and the Caribbean Sea, but this advantage of having two coastlines is offset by the difficulty of movement between the coasts and the interior. The three massive ranges of the Andes Mountains which run from south to north present formidable barriers to communication between the main areas of population, which until recently developed as separate and almost isolated communities. Transport investment policy over the past twenty years has been aimed at national integration and at overcoming the situation imposed by geography. 21. Colombia has a road network totalling about 51,000 km of which 21,000 km are national highways under the jurisdiction of the Ministry of Public Works and Transport (MOPT). Almost all the remainder (27,500 km) are the responsibility of the departments. About one-third of the national system is paved against about 3% of the departmental roads; the remainder are gravel or unsurfaced roads. The national highway system includes the trunk road network which connects the main economic centers and ports and secondary roads linking smaller towns to the trunk roads. The two major transport corridors run north-south along the Cauca and Magdalena valleys and are connected by two paved roads in the central region, one via Ibague-Armenia and the other via Honda-Manizales. 22. The Colombian National Railways (CNR) operate a unified network of lines totaling about 3,400 km, all single track and narrow gauge (914 mm). Most of the system runs north and south in the two principal mountain valleys. The northern terminal of the system is the Caribbean port of Santa Marta and the southern terminal is at Neiva in the Huila Department. The terrain has made the construction and maintenance of the railroad both difficult and costly. As compared with highways, railways are a more difficult mode in mountainous terrain. Railway costs increase sharply with high gradients and good equipment, high operating efficiency and large volume are essential for a profitable operation. 23. Under these conditions, it is not surprising that Colombia's railways have fared badly in competition,with the rapidly developing road network. The cargo volume carried by the railways, although, in absolute figures, rising from about 800 million ton km in the early 1960s to about 1,200 million by the 1970s, has shown limited growth in recent years. As a result, CNR has been requiring increased financial assistance from the Government. The rail- ways, however, appear to have a long-term economic role as carriers of bulk cargo over long hauls. To examine the future of the railways, a study is being carried out under the direction of MOPT. 24. While the traditional importance of inland shipping has decreased due to the development of rail and, later, road transport, it is still of some importance. About 95% of the inland shipping traffic is carried by the Magdalena River, which, although of difficult navigation, is quite dependable  - 8 - in all seasons down river of Gamarra (about 470 km from the coast). Up river as far as Honda (930 km from the Barranquilla river sea terminal) navigation is only seasonal. The 71 mile Canal del Dique, which was constructed in Colonial times and connects the Magdalena River with the sea port of Cartagena, carries a substantial volume of traffic. Much of this traffic is transshipped to road and rail at Cienaga and a number of river ports further upstream. River cargo consists mainly of a few bulky commodities, of which petroleum products are the most important. The under-populated eastern part of the country has practically no highways except for a few penetration roads and is mainly dependent on river transport. 25. The principal seaports of Colombia are Cartagena, Barranquilla and Santa Marta on the Atlantic and Buenaventura on the Pacific coasts. Between 1966 and 1972, the traffic in the four main ports increased from 2.1 million tons to 2.6 million tons (about two-thirds for imports and one-third for exports). With the improvements of the transit storage and cargo-handling facilities carried out with IDB financing, the four main ports are now able to handle over 4 million tons of general cargo per year. 26. Colombia's difficult terrain has encouraged the development of air transport as a means of domestic and international traffic. There are about 650 landing facilities in the country; four of these handle international traffic, and there are at least 25 others with volumes of domestic traffic upward of 1,000 passengers a month. In view of technological improvements in the aviation field and the inherent difficulties of surface transport, aviation is most likely to continue to have an increasing role, particularly in the movement of passengers in the more remote areas of the Colombian Amazonas. Transport Investment, Regulation and Coordination 27. The effort to complete the basic transport network required a considerable proportion of the country's total investment. Transport repres- ented between 10% and 15% of domestic investment and about half the Central Government's investment in the late 1950's. When the trunk highway system and the Atlantic Railways were being completed, that proportion rose to more than 60% of Central Government investment in some years. More recently, however, the proportion has been declining; in the late 1960's, it was about 35% and, as of 1970, it was on the order of 25% of total public investment. In 1975, about Col$3,200 million were invested in the transportation sector (around US$107 million); of these, about 60% went to road transport, 18% to rail transport, 11% to aviation, 8% to ports and marine transportation and 3% to inland waterways and shipping. 28. Road-rail competition, the most important area for transport co- ordination, has developed largely in an unregulated environment. Several studies, the last of which was the "IMagdalena River Basin Transport Study" (Netherlands Economic Institute, 1974), have not had a significant impact on creating a framework for improved transport coordination. In 1966,  - 9 - Decree 3160 attempted to tie in the various entities responsible for transpor- tation with the Ministry of Public Works (MOP), and some form of central control was imposed. More recently, however, coordination of the modes has been tightened up. Decree 154 of January 27, 1976, restructured MOP and turned it into the Ministry of Public Works and Transport (MOPT). The decree assigns to MOPT's planning office responsibility for intermodal planning and coordination for the transport sector except aviation. The Minister has been given the power to approve the budget and the investment programs for all modes, excluding aviation. The Ministry has initiated the preparation of a national transport plan. One obstacle to making transport planning effective is the fact that MOPT's Planning Office until now has also been responsible for highway planning and, therefore, has been identified by the other modes as a highway planner only. At the suggestion of the Bank the Government will therefore soon shift the responsibility for highway planning to another division within MOPT which will be set up as an advisory group to the Vice- Minister (Section 4.05(a) of the draft Loan Agreement). Road Transport and Traffic 29. The Colombian economy has become highly dependent on the availability of roads and their capacity to bring products to ports and imports to their inland destinations. In the early 1950s road traffic accounted for about 43% of total freight movements; in the mid-1960s that share had risen to about 53% and in 1974 the share was estimated to be close to 70% of all interregional and international traffic. By comparison, river transport and coastal shipping accounted for about 15% and railways for about 15% of total interregional and import-export traffic. Meanwhile, total freight transported by all modes rose from 3,800 million ton-km in 1960 to 8,400 million ton-km in 1972. 30. There are about 500,000 motor vehicles in Colombia, of which roughly three-quarters are passenger vehicles, mainly automobiles, and the rest are freight trucks. The fleet has grown at a rate of about 9% per annum over the five years 1970-1975. The number of trucks has been increasing faster than the number of automobiles (12% per annum compared with 7% per annum for automobiles). There are no reliable statistics on the composition of the fleet, but a survey carried out in 1973 by the Transport Finance Corporation, a Government agency, showed that 60% of the truck fleet has a payload capacity of less than 7 tons, 30% of between 7 and 10 tons and only 10% of over 10 tons. Since about 90% of trucks are single axle vehicles, overloading is common. Colombia instituted vehicle weight control regulations in 1955 but they have been enforced sparingly. Improved maintenance practices would require a stricter vehicle weight control. As part of the proposed project, a vehicle weight control program would be established (see paragraph 54 below). 31. Traffic on the main trunk network of the country has been growing at an average rate of 8% per annum. Traffic volumes on most paved roads are in the 1,000 to 2,000 vehicles-per-day range, except around the major urban centers of Bogota, Cali and Medellin, where they amount to about 4,000 to  - 10 - 6,000 vehicles per day. The average composition of traffic is about 30% to 40% automobiles, 10% to 20% buses and 40% to 60% trucks. On the roads to be rehabilitated under the proposed project, trucks account for about half of the traffic. Highway Administration, Engineering and Construction 32. Within the MOPT, the Directorates of Construction and Operations are responsible for constructing and maintaining the national highway network under the supervision of the Vice-Minister. The Directorate of Construction is divided into five divisions: Studies and Designs, Construction Materials, Contracts, Contract Supervision and Special Highway Programs. The Directorate of Operations consists of two central divisions, one for Road Maintenance and the other for Equipment and Workshops, and 19 districts. The districts will soon be increased to 26. Each district is headed by an engineer who is responsible for the maintenance of the national highways (250 to 2,250 km of road per district). The districts also maintain the plant and equipment assigned to them under the guidance of the Equipment and Workshop Division at Headquarters. The two central directorates are reasonably well staffed, and their senior personnel are experienced and capable. There is, however, too little field labor in relation to supervisory staff. A drift of personnel into senior positions and a freeze on new hiring are the causes of this situation. MOPT is aware of this problem and proposes to correct it. 33. MOPT has limited design capacity and uses consultants for this purpose. While the recent reorganization has increased its engineering capability, it will continue to depend on consultants for most design work. The consulting profession is well established in Colombia. There are a number of capable Colombian engineering firms, most of which have benefitted greatly from their participation in foreign-financed projects in highways, power and other fields. Except for unusually large projects in which foreign consul- tants have been associated with Colombian firms, most road projects have been carried out with the assistance of local consultants. 34. Modern methods of highway construction were first introduced to Colombia in the early 1950s, when experienced foreign contractors were employed on the First Highway Project. There are now about 25 local firms, each capable of handling over US$1 million worth of asphalt road construction. Ten of these firms have the capacity to handle contracts of at least US$2.0 million. Few foreign civil contractors are presently working in Colombia. A permanent register of firms, showing their technical and financial capacity, is main- tained and updated annually by MOPT. Each firm's capability to undertake a particular contract is reviewed after presentation of bids. As a result of several improvements introduced during the past year, MOPT now has a strict and equitable basis for contracting. A system of prequalification of bidders has been established and the required budgetary resources have to be approved by law before contracts can be awarded. Highway Maintenance 35. Unstable soils, bad weather, overloading and deficient maintenance practices are the principal causes of the generally poor condition of the  - 11 - national road network. At least half of the paved roads need asphalt over- lays or seals to strengthen and preserve the pavement structure. 36. As stated above, MOPT is responsible for the maintenance of the national road network through its maintenance districts. Budget requests are made annually by the districts for routine maintenance activities and for special maintenance which includes urgent works such as protection and stabi- lization, asphalt seals and overlays, road upgrading and reconstruction. Usually the budget requests are reduced substantially through administrative review. Over the last few years, the actual budgetary allocations for road maintenance have been grossly insufficient. Over 80% of the reduced alloca- tions was used to pay fixed personnel costs and very little was spent on purchasing spare parts, fuel, materials, and equipment replacement. Periodic maintenance of paved roads (asphaltic seal coats and overlays) was neglected and only urgent repair works have been carried out. 37. MOPT does not have a replacement program for its maintenance fleet. Purchases have been sporadic and on a stop-go basis. The last significant purchase of equipment was in 1971/72 financed with US and UK credits of US$21 million equivalent. MOPT presently has about 4,200 heavy equipment units in its fleet, which would be more than enough if the units were in good condition. The average age of the fleet is over ten years and its general condition is critical. About 25% of the units are obsolete and cannot be economically repaired and another 35% are out of order or in need of a major overhaul. 38. The proposed project would help correct the foregoing. During negotiations the Government has agreed to cause MOPT to: (a) separate the budget allocations for routine periodic and emergency maintenance from those for non-maintenance activities (Section 4.04(b) of the draft Loan Agreement); (b) plan and implement a program of periodic maintenance on a continuing basis over the period 1978-81 of about 400 km of roads annually (Section 4.04(c) of the draft Loan Agreement); (c) continue systematic renewal of its fleet of maintenance equipment; and (d) carry out annual programs for purchase of spare parts in order to increase equipment availability (presently estimated at only 40-50%) and help reduce the number of units needed to maintain the highway network adequately (Section 4.04(c) of the draft Loan Agreement). Highway Financing and Road User Charges 39. The National Highway Fund (Fondo Vial) is the main source of funds for construction and maintenance of the national highway network. The Fund derives about 80% of its revenue from the gasoline tax and the remaining 20% from Government contributions and external loans. On average, about 10% of the Fund's expenditures are for feeder roads, and 90% for the national road network, of which 30% is for maintenance and 60% for construction and paving. As already mentioned, since August 1975 the Government has been following a policy of gradually increasing the price of petroleum products and gasoline until prices reach international levels. As a result, revenues from the gasoline tax are expected to increase significantly in the future. During the  - 12 - next five years the National Highway Fund should have sufficient revenues to sustain the increased level of maintenance expenditures proposed under the project. To cover all maintenance and the rehabilitation program proposed under the project, the Government has agreed to make contributions from general budget revenues (Sections 3.01 and 4.04(a) of the draft Loan Agreement). 40. In addition to the gasoline tax, there are several additional taxes levied on road users, but the proceeds accrue directly to the National Treasury and/or Local Governments and not to the Highway Fund. The most important of these taxes is the import duty on vehicles and spare parts. For automobiles, the duty, based on c.i.f. value, varies from about 200 to 450%, depending on the type of vehicle. Import duties on trucks and pickups fluctuate between 70% and 200%. There are also toll charges on some roads but the revenue collected is insignificant. Annual license fees are collected by the municipalities and the municipalities also levy a 20% surcharge on all vehicles weighing more than 1,400 kilograms (about 3,086 lbs). Bank Involvement in the Transport Sector 41. The Bank has played a crucial role in the development of Colombia's transport sector. Since 1950, it has lent a total of US$255.2 million. Over the period 1953-1973, Bank disbursements accounteA for about 10% of total investment for highways and 30% for railways. The Bank started financing transport investments as a result of the findings of the 1949 General Survey Mission, which found the transport system in exceptionally bad condition. The Bank has made twelve loans and one IDA credit to the sector. Six loans and one IDA credit totalling US$135.6 million have assisted construction and upgrading of the trunk highway network, which connects the main populated centers in the country. Two loans for US$40.9 million financed the construc- tion of the Atlantic Railroad, from La Dorada, near Bogota, to Fundacion, near the port of Santa Marta, a distance of 672 kms. Four loans totalling US$78.7 million supported a railway rehabilitation program, which helped provide roll- ing stock for the new Atlantic Railroad and rehabilitate many sections of track. 42. The first three highway loans were made to support an emergency program (First Highway Plan) and, therefore, did not have economic or detailed engineering studies. As construction progressed, standards were raised substantially and, as a result, more construction time and financing than originally envisaged was required. 1/ In spite of the delays and cost over- runs, an Evaluation Report in 1972 2/ concluded that the road projects proved 1/ In August 1961, IDA made a credit of US$19.5 million (Credit 5-CO) and the Bank made a loan of US$19.5 million (Loan 295-CO) to complete parts of the First Highway Plan which were unfinished after ten years. 2/ Report by the Operation Evaluation Division on Bank operations in Colombia (Doc. Z-18 distributed to the Executive Directors on May 25, 1972.)  - 13 - to be, on the whole, very successful investments. The average rate of return (IRR) of 24 road sections analyzed based on road user savings (but omitting time savings) was 25.1%. The projects resulted in the reconstruction or upgrading of 3,200 km of trunk roads. They contributed to the development of a unified trunk road system and to the emergence of road transport as the main means of transportation. 43. Two loans were made in 1968 and 1970 (the Fifth and Sixth Highways Projects, respectively) for construction and/or paving of about 2,300 km of main roads as well as construction of two major bridges over the Cauca and Magdalena Rivers, respectively. Construction under the Fifth Project was com- pleted three years late and with a 20% cost overrun. In the case of the Sixth Project, which also suffered lengthy delays and large cost overruns, the Bank agreed to a Government request to reduce its scope from the original 1,618 km to 874 km. As of this writing, seven sections in the program are still under construction and about 200 km still have to be paved. About 10% of the Loan remains undisbursed. Project completion is now expected for 1979 (as against the original target date of 1974). Design revisions to allow for stronger pavements were a major cause of substantial increases in quantities and costs. Delays in execution have been due also to lack of local funds, poor contract management and insufficient supervision and coordination by MOP. Nevertheless, the Fifth and Sixth Highway Projects, despite their shortcomings, have made important contributions to the trunk road system and assisted in the estab- lishment of better engineering practices and improved contractual procedures. Furthermore, they contributed to the development of the local consulting and construction industries. Under the proposed project, the risk of a recurrence of earlier difficulties has been substantially diminished. Final engineering design has been completed, Government contracting procedures have been improved, the availability of local funds is being increased and supervision of works is being strengthened (see paragraph 61). 44. During its association with Colombia's highway subsector, the Bank has been very much concerned with road maintenance, and all the six highway projects have included provisions in one form or another for assisting MOPT's maintenance effort. The Fourth Project, in 1961, provided for the purchase of maintenance equipment and for a reassessment by foreign consultants (COMEC- Harris, Mexico-USA) of the Ministry's organization and procedures. Under the Fifth Project, the Government committed itself to implementing the recommen- dations of the consultant. The present field organization, which is basicaly adequate, was established and staffed. Initially, road maintenance improved. However, with the passage of time road maintenance has again deteriorated, and a chronic lack of funds has prevented it from being improved. The Govern- ment, however, is determined to change this state of affairs once and for all, and has requested Bank assistance for this purpose. The proposed project would assist the Government in establishing the basis for improved and sus- tained road maintenance.  - 14 - PART IV: THE PROJECT Background and Objectives 45. To assist the Government in protecting past highway investments and in sustaining improved maintenance practices, the proposed project would: (a) rehabilitate parts of the main trunk highways; (b) mount a program to reduce vehicle overloading; (c) improve the condition and availability of the highway maintenance fleet; (d) improve efficiency of road maintenance operations; and (e) improve intermodal transport planning. 46. The Rehabilitation Program of the project developed out of a survey carried out in 1973 by the French consultant firm INGEROUTE under the Fifth Highway Project which showed that about 1,700 km of the 6,500 km paved national highway network required urgent rehabilitation. The Highway Mainte- nance Program of the project was largely developed by MOPT and Bank staff and a Bank consultant assisting the appraisal mission. Negotiations were held in Washington in May 1977, with a Colombian delegation led by Dr. Javier Restrepo Toro, Vice Minister of Public Works and Transport. A project appraisal report, entitled: "Colombia: Seventh Highway Project" (No. 1557b-CO dated June 16, 1977) is being circulated separately to the Executive Directors. Project Description and Execution 47. The project consists of: (a) a rehabilitation program, including about 978 km of trunk asphalt paved roads, and comprising improvement of terrain stability and drainage, strengthening and widening of the roadway, where necessary, and overlaying the existing pavement, as well as supervision of civil works by consultants; (b) a vehicle weight control program, including a study and installation of about 20 weighing stations on main trunk roads for enforcement of vehicle weight regulations; and supervision of civil works and equipment installation by consultants; (c) a highway maintenance program including acquisition of about 800 units of equipment and spare parts as well as workshop and store extensions to support improved methods of highway maintenance and equipment utilization; (d) acquisition of vehicles, road marking, laboratory and drilling equipment; and (e) studies for transport sector management. 48. The execution of the project would be the responsibility of MOPT through its Directorates of Construction and Operations. The rehabilitation program, the bulk of the proposed project, would involve civil works to be carried out in 33 road lots over a 4-1/2 year period starting in mid-1977. In addition to strengthening and paving, the works would include installation of proper drainage to stabilize the terrain and protect the pavement; widening the pavement when needed but not necessarily widening the shoulders since this would often produce unjustifiably high costs; and provision of complementary works such as retaining walls, erosion control, and signs to protect the  - 15 - roadway and improve the safety and continuity of traffic. Overall supervision of the contracts would be carried out by the Supervision Division of the Construction Directorate but coordination of the program would be the respon- sibility of the Directorate's Special Highway Programs Division. This Division would require strengthening to provide the necessary control for the project's execution. Six experienced engineers would be hired or recruited within the Ministry for this purpose; an additional engineer would be provided under the project mainly for general coordination and to provide technical advice for, and coordinate, the rehabilitation program (Section 3.02(b)(i)(A) and Section 3.03(b) of the draft Loan Agreement). 49. The highway maintenance program would involve the purchase of equip- ment and spares to improve availability of the road maintenance fleet from the present low level of 40-50% to about 70%. The increased availability would allow a reduction of the size of the fleet from the present 4,200 units to about 3,740 units. The program would also involve assisting the districts in making better use of their resources, including the equipment and spares. This program would be executed by MOPT's Directorate of Operations. 50. The equipment replacement program would be carried out during the 1978-81 period. The total cost of the program is estimated at US$50 million equivalent in 1976 prices. Of this amount, US$18 million is included in the proposed project and would be financed by the Bank. The remaining US$32 million of capital expenditures for this program would be financed by the Government from other sources (and is included in the US$246.0 million men- tioned in paragraph 49 above). 51. The project would provide for the purchase of spare parts to overhaul about 1,230 economically repairable units which are under 15 years of age. In addition, the project would finance an initial stock of spares to carry out preventive maintenance on 1,060 units of equipment purchased after 1970. UNIDO experts have prepared preventive maintenance schedules for this equip- ment and have demonstrated their application to the maintenance districts. MOPT would procure all other spares for the remaining preventive and correct- ive equipment maintenance program. 52. The vehicle weight control program would be defined in greater detail following the completion of studies now in progress. Before disbursement would take place for this program, adequate laws and regulations establishing vehicle dimensions and weight limits, administration procedures and an organi- zation for their enforcement would have to be in operation (Section 4.06 and Schedule 1, para. 4(c) to the draft Loan Agreement.) Funds earmarked for this program would not be transferable to any other category of the loan (para. 5 of said Schedule 1). 53. The project would provide technical assistance to help MOPT achieve improvements in road maintenance performance. The technical assistance would be mainly on-the-job training for engineers, mechanics, storemen and field personnel. Twelve engineers and thirty specialists would be provided by con- sultants over two to three years for this purpose. Consultants would be  - 16 - engaged to conduct studies and prepare an inventory of locally available road construction materials (Sections 3.02(b)(i)(B) and 3.03(a) of the draft Loan Agreement). Also, the technical assistance would provide additional support to MOPT's Sector Planning Office, which, with the assistance of the Netherlands Economic Institute, is carrying out studies for the preparation of a national transport plan. A total of about 230 man-years of professional services would be required for construction supervision and technical assistance. The cost of professional services would range from about US$50,000 equivalent per man-year for specialized technical assistance experts to about US$15,000 equivalent for construction supervision by local professionals. Cost and Financing 54. The cost of the project is estimated at about US$153.75 million equivalent. Foreign exchange expenditures are estimated at US$90.75 million or about 59% of the total project cost, of which US$90 million would be financed by the proposed loan. Construction cost estimates are based on detailed engineering by Colombian consultants, reviews carried out by MOPT and Bank staff and on unit prices for similar works recently contracted. Cost estimates for spare parts and maintenance equipment were based on detailed analysis of the requirements by the United Nations Industrial Development Organization (UNIDO) and MOPT and recent quotations obtained in Bogota. The price contingencies amount to about 26% of base costs and are estimated on yearly price increases, in line with current Bank guidelines. A contingency of about 10% of civil construction costs has been included to allow for increases in quantities. 55. The proposed Bank loan of US$90 million would cover about 58% of total project costs. The remaining costs as well as MOPT's budgetary needs for routine, periodic and emergency maintenance over the project period 1978-81, estimated at US$246.0 million equivalent, would be financed by the Government. The latter includes expenditures for spare parts, and periodic maintenance which, although essential for the success of the project, have not been considered as project expenditures because of their recurrent nature. Procurement 56. The procurement arrangements for each project component would be as follows: (a) Rehabilitation Program Except for urgent stabilization and drainage works, construction contracts would be procured by international competitive bidding in accordance with Bank guidelines. The contracts would be grouped for bidding purposes into six time-spaced batches, each containing 4 to 10 lots. This would enable firms awarded contracts in the early batches to participate in later batches without overextending their capacity. The estimated value of individual con- tracts would range from US$2 to US$4 million. The stabilization and drainage  - 17 - works, part of which are already being executed, would be contracted under similar conditions and specifications but in smaller size lots (under US$1,100,000 equivalent). The works are concentrated and located in rela- tively isolated zones. Foreign contractors, therefore, unless established in Colombia, are not likely to be interested in the work. Bids have already been advertised locally to facilitate an early start of the stabilization work. (b) Weighing Stations Contracts for construction and installation of weighing stations would be procured by international competitive bidding in accordance with Bank guidelines, in two or three packages depending on geographic location. The packages would be between US$1.5 and US$3 million. The weighing equipment would also be procured by international competitive bidding, in accordance with Bank guidelines. (c) Highway Maintenance Program Procurement of spare parts, maintenance equipment and the logistic support items would be carried out by international competitive bidding in accordance with Bank guidelines. Spare parts of specific makes for existing equipment would be procured directly from established dealers in accordance with a purchase program acceptable to the Bank. Expansion of existing work- shop and store facilities of MOPT would interest only small contractors and would be procured, up to an aggregate amount not exceeding the equivalent of US$1,600,000, under local competitive bidding satisfactory to the Bank. 57. The Bank would review and approve in advance all bid documents and specifications for civil works, equipment, spare parts and logistic support items. In view, however, of the Government's improved contracting practices (see paragraph 34 above) contract awards for (a) civil works and (b) equipment, spare parts and logistic support items amounting to less than US$3,000,000 and US$1,500,000, respectively, would be reviewed by the Bank after they have been awarded. Disbursement 58. Disbursement of the loan would be made as follows: (a) 50% of the total cost of civil works and related supervision; (b) 100% of the foreign expenditure for imported goods and for advisory services; (c) 80% of total expenditure for imported but locally procured goods and of local expenditures for advisory services; and (d) 90% of ex-factory cost of locally manufactured goods. Retroactive financing of up to US$1.0 million equivalent would be provided for civil works carried out since April 1, 1977, for stabilization of critical sections of three roads (Versalles-La Pintada, Pereira-La Felisa and Ibague-La Linea-Armenia).  - 18 - Justification and Risk 59. A detailed economic assessment has been made of the three main components of the project for which quantifiable benefits could be estimated. These are the Road Rehabilitation Program, (with a share of 71% of total project cost); the Highway Maintenance Program (21%) and the Vehicle Weight Control Program (8%). The average weighted rate of return for the project as a whole is estimated at over 90%. The evaluation of the Rehabilitation Program shows a weighted economic return of 36% and first year benefits of 23%. The range of the rate of return for the different sections of the program goes from 14.4% to over 100%. The economic rate of return for the Vehicle Weight Control Program has been calculated at 46%, and that for the Maintenance Program at above 100%. As regards the Rehabilitation and Mainte- nance Programs of the project, calculation of benefits include avoided further increased vehicle operation costs which, in turn, would eventually raise the prices of exports and internally consumed goods. The execution of the project would, of course, result in an immediate financial benefit for the road transport industry. But since this industry in Colombia is quite competitive, it should, in the long run, pass on some of these financial benefits to the rest of the economy, thereby ensuring a wider distribution of the effects of the project. 60. Additional benefits from the project which are not included in the foregoing calculations of the economic rate of return include those deriving from keeping the roads open to traffic at all times. This is an important factor, given that the roads involved are trunk highways, the backbone of the transport system. Some of the roads in question lead to ports and facilitate the country's exports. Their interruption or continuing deterioration would create great disruptions of domestic economic activity. Lastly, further benefits would accrue from the project's civil works since they would help create jobs for up to 3,000 skilled and unskilled workers during the time of project execution. 61. Past experience with highway projects in Colombia shows that they entail considerable risks in the form of delays and cost overruns which are caused by unforeseen geomorphological problems, inappropriate contracting conditions and the resulting poor performance by contractors, insufficient local funding and inadequate administration. In view of this background, special care has been taken in this project to have the engineering studies completed in advance so as to minimize the risk of underestimating physical quantities and to avoid the consequent cost overruns and delays in execution. Furthermore, the Government's improved contracting conditions (see paragraph 34 above) should encourage better performance by contractors in the future. Finally, the Government has committed itself to provide sufficient funds for the project and for routine, periodic and emergency maintenance. Indicative figures have been agreed upon for these purposes (Sections 3.01 and 4.04 of the draft Loan Agreement). These commitments are supported by the Govern- ment's policy of channelling increasing volumes of resources to the National Highway Fund by way of raising petroleum prices and its greatly improved fiscal position (see paragraph 39). In addition, the MOPT's capacity to administer and supervise adequately all works has improved in the last few  - 19 - years and further assistance will be provided through the comprehensive technical assistance program associated with the project, including on-the-job training. These considerations should help reduce project risks. PART V: LEGAL INSTRUMENTS AND AUTHORITY 62. The draft Loan Agreement between the Bank and the Republic of Colombia, the Report of the Committee provided for in Article III, Section 4(iii) of the Articles of Agreement, and the text of a draft resolution approving the proposed loan are being distributed to the Executive Directors separately. 63. Special conditions of the loan are listed in Section III of Annex III. Retroactive financing is provided to a maximum of US$1 million for civil works carried out after April 1, 1977 for the stabilization of critical sections of the Versalles-La Pintada, Pereira-La Felisa and Ibague-La Linea-Armenia roads. Disbursement will not take place for the rehabilitation program until at least four of the six engineers for control of the rehabilitation program and the civil engineer who will give technical advice to MOPT and coordinate the rehabilitation program as well as the inventory of road materials have been hired by the Borrower (MOPT). In the case of the weight control program, dis- bursement would be contingent on putting into effect a plan of action including the necessary legal, administrative and organizational measures. Similarly, disbursement for the maintenance program would be conditional on MOPT's com- pliance with agreed counterpart staffing for the maintenance program. Dis- bursements for spare parts for preventive maintenance under the program would be conditional on the reorganization of MOPT's purchasing, warehousing and distribution procedures (Schedule 1, para. 4 (a)-(e) of the draft Loan Agreement.) 64. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank. PART VI: RECOMMENDATION 65. I recommend that the Executive Directors approve the proposed loan. Robert S. McNamara President Attachments June 16, 1977   CO~LOBIA SOCIAL INDICATORS DATA SNBET LAND AREA ITH1t400 82 ------------ COLOMBIA REFeRENCE COUN8TRIES (19101 TlOTAL 1138.9 MOST RECENT AGRtI C. 127.8' 1960 1910 ESTIMATE tURREY BRAZIL. MEXICO' GNP PERt CAPITA (US$) 210.0 340.0 550.0 480.0 540.0 180.0 POPULATION AND VtTAL STATI SIICS POPULATION (MID-YR. MILLION) 15.4 20.6 23.8 35.7 92.8 50.4 POPULATION DENSITV PEN SQUARE KM. 14~0 18.0 21.0 46.0 11.0 26.0 PER SQ. KM. AGRICULTURAL LAND . 92.0 99.0 67.0 66.0 52.0 VITAL STATISTICS CRUDE BIRTH RATE I/HOU, AV) 46.1" 44.3* 40.6* 40.6 38.4 43.8 CRUDE OEATH RATE I/THOU, AV) 14.1 11.0 6.8 14.4 9.9 10.2 INFANT M4ORTALITY RATE (/THEJU) 100 * 0.i OL'j . 145.0 110.0 68.9 LIFE EXPECTANCY AT BIRTH (YR$) 54.7L 58.5 60.9 54.4 59.7 61.D GROSS REPRODUCTION RATE 3 .2 3.2 3.1 2.6 .Lkb 2.6 3.1 POPULATION GROWTH RATE III TOTAL 2.9 2.9 2. 9 2.5 2.9 3.4 tURBAN 6 .0/b 5. 5/b 4.9 4.9/c 5.0 4.e URRAN POPULATION II OF TOTALI S 3.0/Lc 60.0 63.0 38.5 56.0 58.7 AGE STRUCTURE (PERCENT) 0TO 14 YEARS 46.c 46.6 44.1 41.8 42.0 46.2 15 TO 64 TEARS 5.47e 50. 4 52. 7 53.9 55.0 50.1 65 YEARS AND OVER 3.07: .3.0 3. 2 4.3 3.0 3.7 AG1 OFPFDE.ONCY PATIO .0/c 1.0 0.9 0.9 0.8 I. ECONOMI1C OFPENOENCY RATIO I.7 16L, 1.6La,!.L/ 1.5 2.0 FXMILY ELAPNNl'G Arr EP TOR S (CUMULAT IVFE. THOU I 0.5 306.9 955.1. 2 5 -.0 55.s UScES I (I F 4ARRIED WOMEN) . . 31.0 821.6 C MPL 11 T'N TOTAL LABOP FORCE (THOUSAND) 5140:0/c 6200.2 68C.0. 14503. 0 /8 29602.0 1300J.0 LANO0R ~OrCC IN AGRICULTtIRF (S!K 47 0C 39. .. 67.0- 44.0 40. 0 UN'PPLI1YES IT OF LPAIT FORC'I 8.1 1.0 14.3 4.0/f INCOME SISTPIRUJ'ION I OF 'PIVZTE I-CCTmE 'EC*C RY- HIOI1EqT 5F OF HOUSE4CLfS 41. 2/c Ef 31 .,q/d ..32.8A~ 35. 0/. 37.8 HICHEST 3Z)Y OF HOU,SPHOLCS 6.7'7 60.1/d . 60.6ZA 62.0O0 63.2 (COWEST 2)T OF HOUSKFCLOS 2.ij~ 3.5Th . 2. 3.0/a 4.2 tnwE`ST 404 OFp HOUSEHOLnlS 6.8~ 10. 17d 9.49~ lu.0/a 10.2 OIS 5TRI BUT ION OF L AND OWNERSHIIIP T OWNrD BY TOP 1QY OF OwNERS B.).8. 0L/b30 450 3. 0 'UWNFr By SPAALLFST IO5 OIwNERS j. . . 2 /6 3.9 145 0.37 HEALTH 4ND F.'JTPITICN PIIPULAT IIN PER PHYS~IC IAN1 2400.0 2110.0 2100.0k, 2250.0 IlQa.0 2480.0 P0PUJLA'ION P~R NIIRSING PFPSrN 352C.0/ .. 1450. 0 a 1770.0/h 3220.0/b 16A20.0 POPULAT ION PFR HOSPITAL EFI) 580.0 430.0 460.0/b 503.0 2b0.u- 96O.o PFR CAPITA SUJPPLY OF - SALONIES IAl SF 8TDLINEMENTS) 94.0 97.0 95.0_/8 1 10. 2.0 I .) 10. 0 P FOT It, (GRAMS PER PAyPTs 50.0 1.0 51.0/d 78.2 64.3 65.0 -CF WHICH- ANIMAL AND PIuLSE 28.0O/h 29.0/e . 22.0/i 39,0 28 .0/8 CFATH -ATF 1/THfIUl AGES 1-4 16.3 8.4 L. 5.0/b . 9.8 F DUCANTIC(71 AOJUSTED FNROLLRENT PATIO PRIMARY SCHOOL 73.0 102.0 114 O/c 111.3 9. 0 106.0 SFCONOARY SCHOO,L 12.0 J3.0 e OZ.0 78.3 28.0 23.0 YEARS OR ScHonLING PROVIDES (FIRST ANO SEC0ND LFVFLI 11.0 11.0 11.0 11.0 13.0 12.0 VOCATIONAL C'APIULLMFNT It (IF SCCON04PY1 3 1.0/ O. 20.0j-f 21.0 /ce 14.3 17.o 24.0 ATULT LITFRACY RATE 151 .. 3.0 74.0 / 59,0A 68.0 76.0 HOUSI NG PERSONAS PEA PO08 (URRANJ) .. . . .9 1.0 2.2 OCCUlPIED DWELLINGS WITHOUT FIFED wATEP U% 59 oI~c. . 64.0 (3.0/c 61.0/Ob ACCESS TO ELECTRICITY _ IX DF ALL DWELLINGS I 43. 0 /c * .41.3 48.0 59.0 RURAL nW~LLINGS CONNECTED To ELFCTRICITY lIki 8.0 /C . 18.0 8.0 28.0 C SN SUNFTI ON RADIO PECEIVEPS (PEP THOU P5lp) 139.0 105.0 120.0 89.0i 60.0 276.0 PASSENSFR CAR5 (PE4 THOU POP) 7D.0/ 12.0 14.0 4.3 2 5.o 2 4 . ELECTRICITY (R4H/YP PEA SARI 244.0 414.0 499.0 247.0 491.0 567.2 NEWSPRINT (KG/YR 358 CAP) 2.4 2.8 1.8 0.7 2.7 3.7 SFE NOTFS ANT OEF INIT IONS ON] PEVERS F  o - 0. 000l'0 0.0 00. 0.;-  lo 0.0 - 1. o 0 '00000 - 0.10 0 0 I 0 - oO.0 0 0 .0 0.0' agO *1 - 0. - '011.00 fr. 00 000.0 -, 11.10 1-I - 1. ooooo.-2' 00.0 000 00.! - 00 0. '0000 I. 00000000000 00.000 0 0 0.0 0--..o 1. 0000 0 0.0 0(4 0. 1. 0 - ooOoo1.1.olo 0 0-00000. 1.0 000..-. 00.000 1,0 0.0 0.0 01.1.1.0 0 0.0 .00 00 00000.0.00 -, 8.; 0O .00 oo o 22 . s 0 .0000000.0 0 1,0 00 00 - - 0100 0b00  50-.'..' 0 01000. 080.00. 00 0 00. g1. 0.0 .oO - so '00 -- 0 oO 0.1.20000 0.00 .0 - 0. - 02 0 ,2oo-o .00. 00 IO 00 0.1 00.00 0000000. 0.00 00- 000- 00 .00 0 01. 00 - - 00 00 0 1. 00.1 00.0-0000 00.0 00.0, 00 00 000, 0o a 00 .000 .0 00.01 .21 0 - 0.-Oc .5 000 0 0 1.00 20 Ao .21 1.1. *'. 00 1. j 0.0 - 0 0 00 00 .00. 0 000  001.00000.0 0 00 o 00 .101.0 0. 0 - 0 00000o0 00000 0 110 .0.0 .0.0 0 10 .08 00000002 0 0 00 00 001.0000000 0.0 0 0. 000 .000000000 000 00000.0 01.0 00 00 0.0 0.00 1.0 'o0. Y: iII%!'t " 0 1 o:0:o