Honduras - Highway Maintenance Project

s~~~~~~~~- | ETURtN TO R E S T R I C T E D REPORTS DESK FILE COPY R e p o r t N o. T.O. 99-a LONE WEEKI This document was prepared for internal use in the Bank. In making it available to others, the Bank assumes no responsibility to them for the accuracy or completeness of the information contained herein. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT APPRAISAL OF HONDURAS HIGHWAY MAINTENANCE PROJECT December 7, 1955 Department of Technical Operations  CURRENCY CONVERSION U.S. $1O00 a 2 Lempiras 1 Lempira . U.S. $0. 50 1 million Lempiras a U.S, $500,000  A?PRAISAIL OF HOBi'UISS BIGHWA1'Y AINEIIIANCE PROJECT TABIIL OF COjTENTS Paragraphs I. Summar 1-8 II. Introduction 9-10 III. Transportation Needs and Facilities of Honduras A. Population Listribution and Main 11-16 Economic Activities B. Transport Situation 17-19 C. Thie Road System 20-25 D. Number of Vehicles, Volume of Traffic and Cost of Road Transportation 26-28 TV. Organization and Activities of the Hig'hway 29-32 Department V. The Project 33-36 VI. Economic Berefits 37-39 VII. Conclusion and Recoiaendiations 40-h3 Annex 1. ',ap of Honduras Annex 2. Autoretjive Vehicles Registered by Class Anrex 3. Tentative Cost Estimates  APPRAISPL OF IOITDUFRAS HIGI-IT'J Y 'TLAII .iiANCE PROJECT I. SU:IARY 1. Tlhe Government of Honduras has asked the Bank for a loan of $4.2 million equivalent to assist in financing: (a) The establishment and equipping of a road maintenance organization, which wilL involve the reorganization of thie Highway Department. (b) The necessary technical assistance to achieve this objective. (c) The preliminary engineering studies required for im- Drovement and new construction of various sections of the Northern and lestern Highways. 9. T,Tae economically more developed part of the country is in and around the coastal plain on tlhe Atlantic side, w1here there are very exten- sive banana nlantations and the only rail systems in the country. The population consists of relatively isolated units spread out among the other coastal olains and numerous valleys in the interior. 3. One of the main factors which has hampered econoraic development in Honduras is the inadequate transportation system. The Government con- siders that the first steps to be taken in overcoming this situation are to reorganize the Highway Department, to establish within it an efficient Haintenance Division, a-_nd to improve and complete the Norther.n and W,.Testern Highways0 4. The total number of vehicles registered in Honduras in July 1955 was 7,071!. T-his is tvice as many as were registered in l950, so that traffic has been grow