Zambia - Third Highway Project

Report No. 1729b-ZA E L Appraisal of a Third Highway Project Zambia April 17, 1978 Regional Projects Department Eastern Africa Regional Office FOR OFFICIAL USE ONLY Document of the World Bank 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 = Kwacha (K) US$1.00 = K 0.8 K 1.00 = US$1.25 WEIGHTS AND MEASURES 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) 2 - 0.62 miles (mi) 1 square kilometer (km ) 0.386 square miles (sq mi) 1 metric ton (m ton) = 2,204 pounds (lb) GLOSSARY OF ABBREVIATIONS CIDA - Canadian International Development Agency MLGH - Ministry of Local Government and Housing MPW - Ministry of Public Works MSB - Mechanical Services Branch MTPC - Ministry of Transport, Power, and Communications NCDP - National Commission for Development Planning NTC - National Transport Corporation PRE - Provincial Road Engineer RC - Rural Council RD - Roads Department RTC - Road Traffic Commissioner SNDP - Second National Development Plan TAZARA - Tanzania-Zambia Railway Authority TNDP - Third National Development Plan vpd - vehicles per day ZR - Zambia Railways ZTRS - Zambia-Tanzania Road Services GOVERNMENT OF ZAMBIA FISCAL YEAR January 1 - December 31  OR OFflCIAL USE ONLY ZAMBIA APPRAISAL OF A THIRD HIGHWAY PROJECT TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS . ........................ .i-ii 1. INTRODUCTION .................................. * .......... I 2. THE TRANSPORT SECTOR . ....................... . . ........... I A. Economic Setting ..............1....................... B. The Transport System ................................. 2 C. Transport Policy, Planning and Coordination .......... 4 D. Previous Bank Group Projects in the Transport Sector . 5 3. HIGHWAYS .......... .......... . .......... 6 A. The Network ..................................... 6 B. Traffic Growth and Characteristics .................. . 7 C. Administration ................................... 8 D. Training .......*............................. ... 10 E. Expenditure and Financing ............. ................ 11 F. Planning ..**.................... 12 G. Engineering and Construction ........................ 13 H. Maintenance ..................................... ..*. 13 4. THE PROJECT .14 A. Objectives .14 B. Description ............ .. ... 14 C. Cost Estimates .................... ....... . 17 D. Financing ..................... 19 E. Execution and Procurement ..20 F. Disbursements ....... . .. 20 5. ECONOMIC EVALUATION .......... . .21 6. AGREEMENTS REACHED AND RECOMMENDATIONS . . .23 This report was prepared by S. Kathuria (Engineer), M. Mason (Economist), J. Damron (Project Assistant) and P. Brereton (Editor). This document has a rtrkiced distifbutin smay be usd by rcipients only in the performance Of their oMCial dutbs. Its contents nmy not otherwie be discsed without World Bank authorization.  - ii - TABLE OF CONTENTS (Continued) TABLES 1. Zambia's Imports and Exports by Routes (1970-76) 2. Road Network Maintained by Roads Department 3. New Registration of Motor Vehicles (1970-75) 4. Roads Department Training School Courses 5. Roads Department Highway Expenditures 6. Capital and Recurrent Expenditures 7. Roads Included in the Project for Periodic Maintenance 8. Road Maintenance Equipment Needs of Roads Department 9. Road Maintenance Equipment to be Purchased 10. Road Maintenance Equipment to be Rehabilitated 11. Workshop Equipment and Tools to be Purchased 12. Training Aids to be Purchased 13. Technical Assistance to be Provided 14. Estimated Schedule of Disbursements ANNEXES I Terms of Reference for a Study of MSB Reorganization II. Terms of Reference for Feasibility Study and Detailed Engineering III. Terms of Reference for Technical Assistance IV. Economic Evaluation CHARTS I. Organization of the Roads Department (World Bank 17992) II. Organization of the Rural Councils (World Bank 17993) III. Organization of the Mechanical Services Branch (World Bank 17994) IV. Project Implementation Schedule MAP Republic of Zambia - Third Highway Project - Highway Network (IBRD 12934)  ZAMBIA APPRAISAL OF A THIRD HIGHWAY PROJECT SUMMARY AND CONCLUSIONS i. The Government of Zambia has requested Bank Group assistance in financing a project to improve maintenance of the country's rapidly de- teriorating road network in order to safeguard the high level of investment already made in roads. The network is essential not only to facilitate internal and external trade, but also to provide the widely scattered rural population with access to markets and to health and education facilities. ii. The project consists of: (i) a maintenance program for the primary and secondary road network; (ii) procurement of road maintenance and workshop equipment, spare parts, tools and training aids; (iii) rehabilitation of existing equipment; (iv) a pilot rural road maintenance program; (v) a feasi- bility study, and if justified, detailed engineering of a road or roads; and (vi) technical assistance needed for project implementation. iii. The proposed investment is economically sound, yielding a rate of return of 44% for the whole project. Both the routine maintenance and periodic maintenance programs also have rates of return of 44% each. iv. The total project cost is estimated at US$26.7 million, with a for- eign exchange component of US$22.5 million. No taxes and duties are involved. The project will be financed by an IDA credit and a Bank loan totalling US$22.5 million (US$11.25 million each) which will cover about 84% of total project costs and 100% of foreign costs. The Government will contribute US$4.2 mil- lion which will cover the project's remaining costs. v. Responsibility for implementing the project will be divided among the Roads Department under the Ministry of Public Works, the Mechanical Ser- vices Branch under the Defense Division of the President's Office, and the Ministry of Local Government and Housing, assisted by technical experts to be provided. Project implementation is expected to begin in mid-1978 and end in mid-1982. vi. Procurement will be as follows: new road maintenance and workshop equipment, including spare parts, estimated to cost about US$11.6 million equivalent, excluding contingencies, will be procured through international competitive bidding in accordance with Bank Group Guidelines; training aids and spare parts for existing equipment, estimated to cost about US$1.5 mil- lion equivalent, excluding contingencies, will be procured in accordance with Government procurement procedures which are satisfactory. Similarly equip- ment, materials and other items required for the pilot rural road maintenance program will also be procured according to normal Government procedures. Consultants will be employed under terms and conditions satisfactory to the Bank Group (i) to reorganize MSB; (ii) to assist with preparation of bidding  documents for road maintenance and workshop equipment, tender procedures and evaluation of bids; and (iii) to undertake feasibility and detailed engineering studies. vii. With the agreements and under the conditions indicated in paras. 6.01 - 6.03, the project is suitable for an IDA credit and a Bank loan totalling US$22.5 million (US$11.25 million each). The IDA credit would be on standard terms and the Bank loan would have a term of 20 years, in- cluding 5 years of grace.  ZAMBIA APPRAISAL OF A THIRD HIGHWAY PROJECT 1. INTRODUCTION 1.01 The Government of Zambia and the Bank Group have discussed a possible road project since the early 1970's but were unable to agree on the project's content. This was primarily because the Government favored a construction program while the Bank saw the need to improve road maintenance, particularly since road maintenance was steadily deteriorating during the 1970's. More recently, however, Government has realized the importance of road maintenance as a means of reducing transport costs, preserving external trade routes, and ensuring integrated development for the country by improving transportation infrastructure. Subsequently, during a preappraisal mission in 1976, an agreement was reached on the urgent need to improve maintenance planning and operations. The Government of Zambia has consequently requested Bank Group assistance in financing a project to improve the maintenance of its rapidly deteriorating road network by strengthening the existing institutions for maintenance through the provision of equipment and technical assistance. The Project was prepared by the Roads Department (RD) and the Mechanical Services Branch (MSB), with the assistance of Bank Group staff. 1.02 The project includes components to (i) strengthen RD's capacity to plan and execute road maintenance; (ii) reorganize and assist MSB in improving equipment availability; (iii) improve the capacity of Rural Councils (RCs) to plan and carry out road maintenance on rural roads; and (iv) finance a feasi- bility study and, if justified, detailed engineering for the upgrading to bituminous standards of the Mansa-Nchelenge road (240 km) or such other road or roads as may be agreed between Government and the Bank Group. 1.03 This report is based on findings of two appraisal missions which included Satdev Kathuria (Engineer), Melody Mason (Economist) and Janet Damron (Project Assistant). The report was edited by Patricia Brereton. 2. THE TRANSPORT SECTOR A. Economic Setting 2.01 Zambia, a landlocked country in the southern half of Africa, shares common borders with Angola, Zaire, Tanzania, Malawi, Mozambique, Rhodesia, Botswana and Namibia. Covering an area of about 750,000 km , the country is predominantly a plateau, with swamps and valleys along the Zambezi River which forms the country's southern border. Although about the size of France, Zambia has a small population of approfimately 5 million, with an av~rage population density of 6 persons per km overall, but only 3.6 per km in  - 2 - rural areas. The urban population comprises about 35% of the total popula- tion. Urbanization has been rapidly increasing; although overall population growth is estimated at 3% p.a., population in urban areas increased by almost 7% p.a. from 1969-74, as compared to a 1% growth in rural areas during the same period. 2.02 GNP per capita is about US$440 (1976 estimate); between 1965 and 1976 real GDP grew at a rate of only 2.8% p.a., approximately equal to the rate of population growth. Copper mining continues to dominate the economy, accounting for more than 90% of exports and about 21% of GDP in 1976. Aggre- gate growth has been slow due to near stagnation in mining and a low growth rate in agriculture. Economic activity is concentrated along the "line-of- rail" a narrow north-south strip, running along the railway through central Zambia. 2.03 Since imports and exports account for about half the value of Zambia's GDP, the country is particularly dependent on its transport network and its access to ports through neighboring countries. To maintain economic activity at current levels, about 2.5 million tons of cargo (including oil) mus;I move in and out of the country each year. This has led to an emphasis on external trade routes in transport investment, as well as internal trans- port development within the line-of-rail corridor. Recently, however, the Government has been focusing increased attention on agriculture and rural development and has consequently begun to extend its transport policies to developing the transport system in the rest of the country. B. The Transport System 2.04 The transport system comprises approximately 35,000 km of roads, 2,000 km of railways, 150 airports and a 1,700 km oil pipeline from Dar es Salaam to Ndola in the copper producing area. To overcome its landlocked situation, priority in transport development has been given to outlets to the sea. Traditionally, railways carried the bulk of Zambia's external trade, but because of recent political developments resulting in the loss of external railway connections in Rhodesia and Angola, a large proportion of trade has been carried by road transport through Tanzania, Malawi and, more recently, Mozambique. The internal transport system has mainly developed along the line-of-rail, since this area contains most of the important mining and industrial concerns in the country, and nearly all of the urbanized popula- tion. In recent years, however, greater emphasis has been given to provinces away from the line-of-rail, and in particular to providing paved road access to provincial centers. Chapter 3 gives more details of the road subsector. Railways 2.05 Zambia has two railways operated by different entities. Zambia Railways (ZR) extends from Victoria Falls Bridge on the Rhodesian border to the Copperbelt area in the north where it links up, via Zaire, with the Benguela railway to the Angolan port of Lobito. The Tanzania-Zambia Railway (TAZARA) links up with ZR at Kapiri Mposhi and extends to the port of Dar es Salaam in Tanzania. A feasibility study is presently underway for another railway linking Zambia with the Malawi Railway. .A  -3- Zambia Railway 2.06 ZR is an independent railway, with a main line of 827 km and sub- sidiary lines of 250 km, principally serving mines, refineries and other industries in the Copperbelt area. The railway suffered fr-om serious opera- tional and administrative problems when it separated from Rhodesia Rail- ways in 1967, but its performance improved considerably under the management of Canadian National Railways (1970-75). Government subsidies for the railway from 1972 to 1975 amounted to K 14.0 million, but after a tariff structure reform in 1975, ZR broke even in 1976. Also, more recently, it has been attempting to correct one of its major problems, a shortage of rolling stock, by seeking funds from external sources. Freight and passenger traffic have decreased since 1972. ZR's international freight traffic in 1975 (90 million ton-kilometers) showed a decline of more than 75% from 1972 due to closure of the border with Rhodesia in 1973 and the suspension of services on the Benguela Railway in Angola in 1975. A significant proportion of the external trade lost by ZR has been transported by road. ZR's domestic freight also decreased by about 40% from 1972 to 1975, when it totalled about 920 million ton-kilo- meters; domestic passenger traffic, amounting to some one million passengers in 1975, dropped by 25% from 1972. Poor internal services have caused some commodities, like coal, to be transported over comparatively long distances by road, at higher cost than by rail. Tanzania-Zambia Railway 2.07 TAZARA is jointly owned by the governments of Zambia and Tanzania. Its construction, financed by a Chinese loan of about K 200 million, started in 1970 and services began in October of 1975. The railway's route kilometer- age totals some 1,850 km, of which 880 km are inside Zambia. The Chinese assist in managing the railway and are expected to remain in that capacity until at least 1980. Freight capacity, which is now 2 million tons p.a., can eventually be increased to 5 million tons. However, only about 1,240 million ton-kilometers (675,000 tons) of freight were transported by TAZARA in 1976 due to certain technical problems, which have since been resolved, and more seriously, a much longer than estimated turnaround time caused by long delays in ZR's loading operations. Consequently, over 800,000 tons of external trade was still being moved by road in 1976. Air Transport 2.08 There are 150 airports in Zambia, 52 of which are Government owned. Lusaka International Airport handles all international traffic. The national air transport company, Zambia Airways Corporation, established in 1967, has received assistance from Alitalia, and more recently, Aer Lingus, under man- agement contracts. Operating with three Boeing 707s, one Boeing 737, and four Hawker Siddley 748s, the airline's estimated international passenger traffic in 1976 was 77,000, domestic passenger traffic some 167,000, and about 21,000 tons in international air freight traffic. After several years of operational losses, ranging from K 1.0 to 3.0 million p.a., Zambia Airways incurred only a small loss in 1976 and expects to break even in 1977.  -4- Pipeline 2.09 A 1,700 km pipeline, completed in 1968 and jointly owned and oper- ated by the Tanzanian and Zambian Governments, carried practically all of Zambia's crude oil imports, amounting to 850,000 tons in 1976, and a further 50,000 destined for Zaire. C. Transport Policy, Planning and Coordination 2.10 Before Rhodesia's Unilateral Declaration of Independence in 1965, practically all of Zambia's external trade passed through Rhodesia and the Mozambique port of Beira. After the border closure with Rhodesia in 1973, a Contingency Planning Office was set up under the President's Office in order to ensure efficient routing of trade. Until 1975, about 50% of external trade was rerouted through Angola via the Benguela Railway, about 35-40% went by road to the port of Dar es Salaam, and the rest was routed through various other ports and by air (Table 1). In 1975, when events in Angola severely restricted and eventually halted the operations of the Benguela Railway, Zambian goods were diverted to TAZARA, while the remaining traffic continued to go by road to Dar es Salaam and other ports. It has been estimated that, after the border closure in 1973, the average cost per ton of inland transport between Zambia and coastal ports rose 55% above the average cost in 1972, mainly because long-distance road transport is more costly than rail service. 2.11 Government seeks to maintain control of external trade through the two national railways and through the two companies primarily responsible for international road haulage, the parastatal National Transport Corporation (NTC), and the Zambia-Tanzania Road Services (ZTRS), an associate company of NTC. ZTRS operates on the Dar es Salaam route, and Contract Haulage, a sub- sidiary company of NTC, mainly operates on the Beira (Mozambique) route, via Malawi. 2.12 Internal road haulage is usually undertaken by private operators (para. 3.05). Road haulage rates vary for different routes and commodities, but the overall level is generally set by the parastatal transport companies. Government has controlled tariff increases by refusing to grant parastatal companies permission to raise tariffs. However, although NTC is running at a loss, tariffs still seem to be profitable for private operators. Planning 2.13 The Ministry of Transport, Power and Communications (MTPC) is responsible for transport planning, but has little real planning capacity; recent attempts to set up a Transport Planning Unit within the Ministry have not been successful. The actual process of planning is carried out by the government agencies concerned, and highway planning is undertaken by RD under the Ministry of Public Works (MPW). An integrated long-term sectoral plan,  -5- which will be part of the Third National Development Plan (TNDP), is presently being drawn up for 1978-82 by a Transport Coordinating Committee, formed by the National Commission for Development Planning (NCDP). The Corimsittee consists of representatives of the Contingency Planning Office, NCDP, MTPC, the national transport companies and other ministries. The final sector plan will take account of the subsectoral plans recommended by contributing subcom- mittees, including one for roads. The TNDP was meant to have taken effect from the beginning of 1978, but has now been indefinitely postponed by the Government because of Zambia's uncertain economic: situation. 2.14 The Second National Development Plan (SNDP) (1972-76, later ex- tended to 1977), allocated K 311 million to the transport sector, 28% of total public investment. Funds allocated to the transport sector were used for: constructioni of TAZARA (40%); ZR, the oil pipeline, and air and water transport (33%); and road construction (27% or K 83.0 million). The latter appears to have been reasonable given the already extensive length of Zambia's road network (para. 3.01). The railway and pipeline projects have been completed, but several road projects are unfinished (para. 3.21). 2.15 It is important that investment plans for external transport take into account the many transport alternatives which will arise in the future. The reopening of the Benguela Railway and/or the border with Rhodesia will bring about surplus transport capacity since, once in full operation, TAZARA alone can carry all of Zambia's imports and exports:. However, when risk considerations are taken into account, it is unlikely that Zambia will depend on any one external route, particularly in view of events that have recently disrupted transportation in neighboring countries. Also, an additional factor affecting external transport will be the availability and capacity of seaports in those countries. D. Previous Bank Group Projects in the Transport Sector 2.16 The Bank Group has financed two road projects in Zamrbia. The first loan (469-ZA) for US$17.5 million was approved in 1966 and financed. (i) the engineering, reconstruction and bituminous paving of sections of the Great East Road (251 miles) and Great North Road (122 miles); and (ii) consultant services for detailed engineering and super- vision of construction. The project was satisfactorily completed on time in 1969 at a total cost of US$23.4 million, lower than the estimated cost of US$29.0 million, The Project Performance Audit Report 1/ (PPAR) did not recalculate the rate of return due to lack of data on road user costs. However, since there were savings in construction costs and increases in traffic volumes above appraisal estimates, the actual economic return should have been higher than tne 11-14% originally estimated. 1/ One PPAR (December 10, 1973) was done for both projects.  - 6 - 2.17 A second project, financed by Loan 563-ZA for US$10.7 million and approved in 1968, provided for: (i) reconstruction to two-lane bituminous paved standard of one section (235 miles) of the Great North Road; (ii) three weighbridges on the Great North Road; and (iii) consultant services for detailed engineering and supervision of construction. This project was also completed on time with a minor cost overrun of US$300,000 above appraisal estimates - US$17.8 million against US$17.5 million. A rate of return was not calculated in the PPAR but since traffic levels were higher than expected, the Report estimated that the 12-15% rate of return forecast at appraisal was realized. 2.18 The PPAR indicates that both projects achieved their main objectives of providing Zambia with improved alternative routes to the sea and that, given the region's political uncertainties, the Bank had used good judgment in not developing the internal highway network at that time. The Bank was, however, unsuccessful in its efforts to gain Government compliance with a loan covenant requiring proper maintenance of the road network, and consequently the condition of the network has deteriorated, leading to the need for develop- ing the present project. Enforcement of vehicle axle load regulations and Zambianization of RD's managerial staff were also described as unsatisfactory in the PPAR, and both issues are addressed in this project (paras. 3.08 and 4.14). 3. HIGHWAYS A. The Network 3.01 Zambia has about 35,000 km of designated roads. RD maintains about 19,000 km of these roads (Table 2) which are designated as International Main (T) and Main (M) roads, forming the primary system linking provincial capitals with neighboring countries and with one another, as well as District (D) roads, which form the secondary system linking the primary network with district headquarters and other centers of economic activity. The road network administered by RD comprises about 4,600 km (24%) of paved, about 7,600 km (40%) of gravel all-weather, and about 6,800 km (36%) of earth roads; paved roads increased from about 4,000 km to 4,600 km between 1972-75. 3.02 RCs administer about 16,000 km of Rural District roads which form the tertiary system serving local population centers and agricultural areas. These are generally low standard earth roads for which no reliable inventory exists. The Pilot Rural Road Maintenance Program in the proposed project will institute a system for preparing road inventories in the area to be selected for inclusion in the program (para. 4.09).  B. Traffic Growth and Characteristics 3.03 In 1975, the vehicle fleet consisted of about 160,000 vehicles, of which 59% were automobiles, 18% light commercial vehicles, 11% trucks, and 12% other types of vehicles. Overall, the fleet has been growing at 9% p.a. since 1970 (Table 3), although annual registration of new vehicles has gene- rally been decreasing, probably due to the declining economic situation and the import license restrictions imposed during the late 1960s and 1970s. Most vehicles are licenced in Lusaka, though no fleet statistics are avail- able by area. Trucks with capacities of 30 tons and more, having axle loads greater than the 10 ton limit, became common after 1973 when interruptions in external rail connections caused an increase in goods transported by road (para. 2.04). 3.04 The collection and compilation of traffic data is the responsi- bility of RD's Statistics and Ordinance Unit which is presently staffed by one senior engineer assistant and a clerk. Counts are taken at 58 traffic points for 7 days and 2 nights in July of every year, at the peak of the harvest. According to these counts, traffic on the primary and secondary roads has been growing at about 7% p.a. since 1969. Fifty percent of inter- national and main roads have over 400 vehicles per day (vpd), and another 25% have between 200-400 vpd. Highest traffic volumes are found in the Copper- belt area and along the line-of-rail to Lusaka. Heavy traffic (over 5 ton trucks) amounts to 30% of total traffic, although in the Copperbelt it is often as high as 40%. The traffic counting system is unsatisfactory, and the reliability of existing traffic data is questionable, particularly on district roads. Counts are taken by maintenance gangs who do not understand the significance of the task and receive little instruction or supervision. The project will address this problem (para. 4.11). 3.05 Out of the total number of vehicles engaged in road haulage (approximately 2,500 - 3,000), about 40% are operated by NTC and ZTRS (para. 2.11) and the rest by small independent private operators owning an average of 5-10 trucks each. Lower tonnage vehicles prevail within the private sector, whereas heavy vehicles prevail within the parastatal organizations. Private operators are primarily engaged in internal transportation although NTC and ZTRS also subcontract private transporters on the international routes at officially established tariffs. 3.06 The United Bus Company of Zambia, a subsidiary of NTC, accounts for about half of total road passenger transport capacity, which includes about 75% of total bus and 27% of taxi service capacity. Private operators provide the remaining passenger transport. Passenger transport is hampered by a single countrywide tariff per km for all bus services which has led private operators to avoid providing service on low standard roads since tariffs do not reflect costs; there is, however, intense competition among private operators on long distance routes. 3.07 All vehicles must be registered and licensed. Public service vehicles require a road service license which is issued by the Road Traffic Commissioner (RTC) after he and a Road Transport Panel have considered the  - 8 - application. The RTC decides the conditions of license "as he may think fit" which often leads to arbitrary decisions. Licenses for road transport of goods specify the route(s)/area on which the vehicles can operate, the type of goods to be carried, and may establish the rates to be charged for the service. The Government needs to review its licensing system since present procedures do not allow for flexibility of operations. One of the duties of the transport economist included in technical assistance under the project (para. 4.11) will be to review the licensing system and sub- mit recommendations for reform to the Government. 3.08 The Roads and Road Traffic Act, which governs vehicle weights and dimensions and provides adequate legislation to protect the road network, limits the maximum axle load to 10 tons, and the maximum permissible gross weight of vehicles to 40 tons. Axle loads, 1'owever, are often grossly ex- ceeded, and overweight vehicles are common on Zambia's roads. The situation should be somewhat alleviated once the bulk of external trade is moved by rail (para. 2.15) and once ZR obtains sufficient rolling stock so that more bulk cargo can be transported by rail on internal routes (para. 2.06). How- ever, although this will mean a reduction in the volume of heavy vehicles, traffic legislation will still need to be enforced for the remaining heavy traffic. Past efforts have been ineffectual because weighbridges are open only during the day, and RD, which is responsible for operating the six weighbridges (one of which is inoperative) has not been able to force drivers to unload or shift cargo. Although persistent offenders receive warning letters from RD, few are ever prosecuted. However, RD is already seeking assistance from the RTC to improve enforcement. The Government agreed that it will take all such actions as shall be necessary to ensure enforcement of the legal dimensions, axle loads, and weight limits of vehicles. C. Administration Roads Department 3.09 RD, under MPW, is responsible for construction and maintenance of the primary and secondary road network. It has central services in Lusaka and nine provincial divisions, each headed by a Provincial Road Engineer (PRE). The central services include divisions of Planning and Design, Works, and Administration. PREs are responsible for road maintenance and minor design and construction work in their respective regions. The organization structure of RD is shown in Chart I. 3.10 One of the major constraints on RD's activities has been the short- age of qualified staff, both at headquarters and in the provinces, because of the departure of technical staff after Zambia's independence and the shortage of qualified Zambian engineers. Only 17 of 29 established posts of Engineer, and 11 of 17 posts of Road Inspector are presently filled. The position of Chief Materials Officer is also vacant, as are a number of subordinate posts (3 Materials Officers, 10 Engineering Assistants). Government is trying to overcome the staff shortage by engaging qualified personnel either locally or from overseas. Four key posts, three of Senior Executive Engineer and one of Chief Materials Officer, are essential for RD to function adequately;  - 9 agreement has been obtained from Government that these key posts will be filled by September 30, 1978 by employing additional staff with appropriate qualifications and experience. 3.11 Previous Bank Group projects stressed the importance of Zambian- ization of RD staff, and this policy was adopted by Government but without much success because of competition from the private sector and the limited number of Zambian engineering graduates. The situation has, however, improved in the last two years, and the post of Director of Roads as well as seven other senior positions are filled by nationals. This effort should continue. The Government agreed that it will prepare, by September 30, 1978, a program satisfactory to the Bank Group for the career development of local staff in RD, and carry out such program thereafter. Rural Councils 3.12 RCs under MLGH are responsible for development and maintenance of rural district roads serving the local population and agricultural areas; 34 RCs now exist, and the establishment of 11 more is being considered. Each Council has a department for civil works including construction and mainte- nance of rural roads. The organization of RCs and their Public Works Departments is shown in Chart II. 3.13 Maintenance of rural roads is practically nonexistent because RCs lack the required skills and resources. Because of the lack of skilled manpower for road maintenance, available equipment and labor are mainly used for other types of public works, and road maintenance is done only sporadically. The Pilot Rural Road Maintenance Program included in the project will assist in determining how maintenance planning and operations of RC roads can be improved (para. 4.09). Mechanical Services Branch 3.14 MSB, previously under civilian administration in the former Ministry of Power, Transport and Works (MPTW), was brought under military control in 1974 under the Defense Division of the President's Office. This did not, however, change MSB's functions which were to procure, maintain and repair only civilian government vehicles and plant. Although management of MSB is in the hands of the military, most of its staff is civilian. Of the 24 senior-level management positions, 10 are held by army personnel, 6 by civilians and the rest are vacant. MSB has a central workshop in Lusaka and 9 provincial and 54 district workshops. (MSB's organization structure is shown in Chart III). While the central and provincial workshops handle heavy repairs for vehicles and plant, the district workshops take care of light repairs and routine servicing. Major overhauls, however, are done only at the central workshop. About 30% of the overall workload in MSB's workshops relate to RD vehicles and plant. 3.15 In spite of the shift to the Defense Division, MSB has not been functioning satisfactorily. MSB suffers from a lack of properly qualified and experienced staff. A substantial number of posts in the lower grades  - 10 - (mechanical superintendents, engineering assistants) are vacant, particularly those of mechanics. Only 151 of the 191 established positions for mechanics are presently filled, and the number of casual daily-employed mechanics is also below the required level. The proposed project includes technical assis- tance to help alleviate the staffing shortage and to train mechanics (para. 4.12). The equipment management, maintenance and repair systems employed in MSB workshops are unsatisfactory; in addition, functional difficulties arise because of MSB's position outside the normal civil service lines of communi- cations. To help rectify this situation, the Government agreed that it will reorganize MSB and employ consultants, to be financed under the project, to draw up a plan of action, satisfactory to the Bank Group, to improve its efficiency. The plan will include specific recommendations for improving organizational and operational procedures, and meeting staff requirements of MSB. The employment of such consultants will be a condition of loan/credit effectiveness. An agreement with Government was reached that the said plan of action will be prepared by December 31, 1978 and its implementation completed within another nine months. Agreement was also reached with Government that MSB will be maintained exclusively for services related to non-military vehi- cles, equipment and plant. D. Training Roads Department 3.16 RD has a well-organized training school in Lusaka for lower-level staff (plant operators, road gangers/foremen and road superintendents), with good lodging and boarding arrangements for 48 students at a time, although a larger number can be accommodated if necesssary. The school is well equipped with modern plant, equipment and tools used for practical and classroom instruction. At present, courses vary from driver education, plant and equip- ment operation, and routine servicing to courses geared toward improving the supervisory capabilities of road gangers/foremen and superintendents. Since 1971, approximately 1,200 employees have been trained-retrained (Table 4). The school's output has been sufficient to cover the Department's demand for this category of staff, and career progress for staff trained at the school has been adequate. The school has three full-time instructors, but at present RD is unable to assign more because of its staff shortages (para. 3.10). This problem will be addressed by providing technical assistance under the project (para. 4.11) to assist in improving present curricula and to teach all forms of road maintenance including those operations which can be performed by labor- intensive techniques. About 150 plant operators, 120 road gangers/foremen, and 30 road superintendents will be trained under the project under programs satisfactory to the Bank Group. Rural Councils 3.17 NLGH operates a Training Institute in Chilimbama (20 km outside of Lusaka) which has facilities for approximately 100 students. Most courses are geared to secretarial and administrative personnel; there are also two five-month courses per year for Public Works Officers. Road foremen are admitted to the courses, but since the curriculum mainly stresses other types  - 11 - of civil works, the benefits for road foremen are limited. The Institute also provides training for Plant Operators, but available training equipment is mostly obsolete, and the results are not adequate. In order to improve the quality of road maintenance staff in the Councils, Road Foremen and Plant Operators should be sent for training to RD's training school. The Government agreed that RC's road maintenance staff will be trained in the RD training school. Mechanical Services Branch 3.18 Although MSB currently has the necessary facilities, training equip- ment (such as models, charts, etc), and lodging arrangements for trainees at the Central Workshop in Lusaka, its lack of qualified instructors has pre- vented any regularly organized training program for employees. In some instances the suppliers of construction equipment have given classroom in- struction and on-the-job training in the maintenance and repair of their equipment, but this effort is insufficient. The two instructors to be provided under the project (para. 4.12) will be responsible for organizing a comprehensive training program, satisfactory to the Bank Group, covering about 300 of MSB's mechanical staff. E. Expenditure and Financing 3.19 Total expenditure on roads increased from K 9.78 million (US$12.22 million equivalent) in 1973 to K 24.13 million (US$30.16 million equivalent) in 1976 (Table 5). The amount budgeted for 1977 is K 29.87 million (US$37.34 million equivalent). There has been a decline in real terms of the alloca- tion of funds for road maintenance during 1970s, and present allocations are far below requirements. The 1976 allocation was K 5.36 million although K 13.75 million was requested by RD, and the amount allocated for 1977, K 6.56 million, is similarly far short of the K 18 million requested. A major portion of the amount allocated is spent on the wages of staff who are not fully utilized for lack of plant and vehicles (para. 3.27). The funds requested vis-a-vis those allocated during the period 1972-77 are shown below: K million 1972 1973 1974 1975 1976 1977 Funds requested 12.25 10.25 10.50 10.00 13.75 18.00 Funds allocated 5.38 5.45 5.75 6.29 5.36 6.56 The amounts requested by RD were based on estimates for routine and periodic maintenance of the entire road network which would have required substantial complementary investment in road maintenance equipment. Under the project the estimated recurrent expenditure at current prices (Table 6) for routine maintenance of the entire road network and periodic maintenance of selected roads amounts to K 9.5 million (US$12.0 million equivalent) for 1979, K 15.7 million (US$19.5 million equivalent) for 1980, K 17 million (US$21.0 million  - 12 - equivalent) for 1981 and K 14.7 million (US$18.5 million equivalent) for 1982. Similarly, funds required for maintenance and repairs of equipment and MSB workshops amount to K 1.4 million (US$1.7 million equivalent) for 1979, K 2.2 million (US$2.7 million equivalent) for 1980, K 3.0 million (US$3.8 million equivalent) for 1981 and K 3.2 million (US$4.0 million equivalent) for 1982. The Government agreed that such funds will be provided and that the Govern- ment and the Bank will annually discuss the appropriateness of maintenance funds allocated to RD and MSB. 3.20 Road users contribute to general Government revenues through taxes and duties on vehicles, fuel, lubricants and spare parts, and through license and registration fees. Total revenues collected from license fees and import duties on vehicles are currently estimated to be about K 10 million annually. In addition, in 1975 total tax revenue from the sale of gas was K 19.3 million and diesel fuel K 7.3 million. Most of the taxes on gas and some tax revenues from diesel fuel are collected from road users; it is apparent that these revenues plus those from license fees and import duties, contributed by road users, have covered road maintenance expenditures in the past and have contributed to new road construction. Although road maintenance expenditures will increase under the project (para. 3.19), revenues from road users will still be sufficient to cover the increased costs. F. Planning 3.21 Of the K 83.0 million allocated for roads in the SNDP, an estimated K 80.0 million has been disbursed and a further K 15.0 million has been allocated for ongoing projects, resulting in a K 12.0 million increase in the road construction program. While a large part of the road construction plan has been completed, one project, the Solwezi-Mwinilunga road is still ongoing; another, the Samfya-Serenje road, is about to start; and a third, the Ndola- Kitwe road, has not yet started. Also, two roads not included in the SNDP are now under construction, the Katete-Mozambique border road and the Chipata- Lundazi road. Most of the construction has been financed by local and Chinese funds. Many projects were selected in accordance with Government's policy of connecting provincial capitals to the trunk network with paved roads. More recently the policy has been expanded to connect provincial capitals with one another, even though many of these roads do not appear economically justified. 3.22 The TNDP is still being drafted, and the subcommittee for highway and air transport planning has submitted its proposal to the Transport De- velopment Committee. No economic studies have been undertaken for the projects being considered for inclusion in the highway investment program, and in the past, road construction projects have not been subject to detailed economic evaluation. RD, however, is now anxious to improve its planning and to expand the Planning Unit; the proposed project will assist by providing a transport economist to develop economic criteria (para. 4.11) and by financing a feasibility study for one of the roads proposed for inclusion in the TNDP (para. 4.10).  - 13 - G. Engineering and Construction 3.23 RD's Planning and Design Division carries out minor road and bridge design using its own staff, while major design is done by foreign consultants. Design standards, based mainly on American Association of State Highway Officials (AASHO) standards and adapted to local conditions, are adequate. 3.24 Major construction works are put out to contract after competitive bidding and are supervised by consultants. RD maintains a roster of contract- ing firms, local and foreign, eligible to bid for works up to a particular value depending upon capability and financial status. The construction industry is dominated by local expatriates, and few Zambian contractors are capable of undertaking large road works. Government is, however, anxious to increase the capacity of the construction industry, and to this end has requested Bank assistance to undertake a survey which would provide guidance on how to promote a viable industry; a special study in this regard is inclu- ded in the Fourth Education Project (Credit 1356-ZA). Meanwhile, RD has taken steps to set up four force account units with construction equipment worth about i 3 million supplied under a British grant. These units are initially intended for the development of certain roads as part of a Provincial Feeder Road Development Program. H. Maintenance 3.25 RD's road maintenance organization is basically sound although planning and coordination are virtually nonexistent. Routine maintenance is carried out by zonal crews (122 zones in the whole network), each zone having an average of 150 km of roads. Road camps located in each zone include housing for the workers and their families, facilities for keeping equipment, as well as small offices and stores for tools and essential materials. Each zone is headed by a Road Ganger/Foreman, and four to five zones form a road district (29 districts in all) supervised by a Road Superintendent. The Road Superintendents (3 to 4 in a province) are responsible to a Road Inspector stationed at provincial headquarters. Periodic maintenance such as regravel- ling/ resealing and heavy maintenance work is carried out through special crews (18 in all) under the Road Inspectors. 3.26 The quantity and quality of road maintenance is unsatisfactory and has not kept pace with the expanding road network. There are no regular programs for routine and periodic maintenance, and the road network has consequently deteriorated. No proper records are maintained of mainte- nance carried out, and data collected from PREs indicate that over 2,000 km (44%) of bitumen-surfaced roads and 4,900 km (64%) of gravelled roads have not been resealed/regravelled for some seven years or more. The more heavily trafficked roads show pronounced deterioration; paved roads have developed pot holes and surface cracks over long lengths while many gravel roads have completely lost their gravel. Maintenance of earth roads has been grossly neglected, rendering the drainage ineffective, making roads impassable during rains.  - 14 - 3.27 RD's ability to maintain roads is primarily constrained by lack of adequate equipment and an insufficient allocation of funds. Much of the existing plant and vehicles are old and unserviceable; of 445 pieces of plant, 239 (54%) are over 10 years old and beyond economic repair, and of 524 vehicles, 374 (71%) are over 7 years old and unserviceable. The situation has been only partially alleviated by the provision of 121 graders for both RD and the RCs from the Canadian Government. RD also lacks facilities for servicing or day-to-day repairs of its equipment and relies entirely on MSB. MSB's workshops suffer from lack of adequate equipment, tools and spare parts, besides a shortage of properly qualified and experienced staff and trained mechanics (para 3.15); as a result, RD's vehicles and plant wait for months and, in some cases, years for repair. Consequently, equipment availability for road maintenance is very low, around 25-30%. 3.28 The shortage of equipment coupled with the lack of adequate funds (para. 3419) has resulted in a substantial backlog of road maintenance. There is an urgent need for increased and improved maintenance operations, and the proposed project is designed to aid in this task (paras. 4.04 - 4.06). 4. THE PROJECT A. Objectives 4.01 The objectives of the proposed project are to improve the mainte- nance of the rapidly deteriorating road network and plan for future extension of the network. B. Description 4.02 The project comprises: (i) a program to improve maintenance of the primary and secondary road network; (ii) a pilot rural road maintenance program; (iii) a feasibility study and, if justified, detailed engineer- ing of the Mansa-Kawambwa-Nchelenge road (240 km) or such other road(s) as may be agreed between the Government and the Bank Group; and (iv) technical assistance to RD, MSB and MLGH for operations and training.  - 15 - (i) Highway Maintenance Program 4.03 The program, to be implemented over a 3-year period, will help improve routine maintenance of the road network (19,000 km) administered by RD as well as periodic maintenance of certain priority routes. It is not possible to improve periodic maintenance simultaneously on all roads due to the present large backlog of work and the limited availability of funds and manpower. The project will cover the first phase of a periodic maintenance program which will include 2,000 km of bitumen-surfaced roads and 750 km of gravel roads that are in urgent need of resealing/regravelling; the roads were identified by RD, with the assistance of Bank Group staff, as high priority (Table 7). The Road Maintenance Engineers and the Transport Econo- mist included in the technical assistance for RD (para. 4.11) will review the selected routes and establish priorities. A second phase extending to the rest of the network could follow in a future project. Routine maintenance of roads will be carried out by the existing 122 zonal crews functioning under 29 road districts; heavy maintenance and resealing/regravelling will be done by the existing 18 special crews. 4.04 To assist in carrying out the program, the project includes: - procurement of road maintenance equipment; - rehabilitation of existing equipment; - provision of spare parts for existing equipment; - procurement of workshop equipment and tools as well as training aids; - assistance in reorganizing MSB; and - technical assistance (see paras. 4.11 - 4.12) Equipment 4.05 Much of RD's existing road maintenance equipment is old and un- serviceable (para. 3.27). To help correct this situation, the project provides for the purchase of new equipment (Table 9) and the rehabilitation of existing equipment, where economical (Table 10). The amount of equipment to be purchased is based on the requirement of equipping present crews for routine, heavy and periodic maintenance, determined by RD with the assist- ance of Bank Group staff. Available equipment in serviceable condition and that which is economically repairable have been taken into account in this assessment (Table 8). The project also provides an initial stock of spare parts for new equipment, spare parts for existing equipment, and a number of mobile workshops, one for each province, for servicing and day-to-day equipment repairs by RD.  - 16 - Workshops 4.06 MSB's workshops have inadequate equipment and tools for servicing and repair of vehicles and plant (para. 3.27). The project therefore provides supplementary equipment and tools (Table 11). The project also includes some training aids (Table 12) to assist with training of mechanics. Consultant Services 4.07 Consultants will be engaged to assist Government in drawing up a plan for the reorganization of MSB. Terms of reference were reviewed and agreed with Government and are detailed in Annex I. 4.08 Consultants will be also engaged to prepare specifications and bid- ding documents for road maintenance and workshop equipment and to assist in bid evaluation. In order not to delay the project, assistance in reorganiz- ing MSB and the preparation of bid documents will commence before loan/credit effectiveness. (ii) Pilot Rural Road Maintenance Program 4.09 RCs lack both the skills and resources to adequately develop and maintain rural roads (para. 3.13); as a result the roads are in poor shape, generally without proper formation or drainage, and receive little, if any, maintenance. Government therefore wishes to undertake a pilot program to determine how maintenance planning and operations of RC roads can be improved. The Rural Road Maintenance Engineer included in the technical assistance (para. 4.13) will assist MLGH in selecting a suitable area, covering two RCs, in which to implement the program. A notional provision has been made in the project for setting up a few small workshops/offices, key staff housing, road camps and basic equipment and tools. This pilot program will be prepared by Government with Bank Group assistance and expenditure from the provision will be on the basis of agreement on the program and its implementation. (iii) Feasibility Study and Detailed Engineering 4.10 Prorosals for the TNDP include upgrading to bituminous standard the exiisting road between Mansa-Kawambwa and Nchelenge (240 km). Thlis is a poorly engineered gravel road, in places narrow and lacking adequate drain- age. The horizontal and vertical profile of the road is generally unsatisfac- tory. The road is important in connecting Mansa, the provincial capital, and the rest of the country with rich fishing and agricultural areas in the north- west of the province. The Canadian International Development Agency (CIDA) will be financing a feeder road scheme to the north of Nchelenge in order to facilitate the collection of fish in the area. The project provides funding for consultants to carry out a feasibility study and, if justified, detailed engineering of the road. Terms of reference for the study are detailed in Annex II. During negotiations, the Government indicated that there was a possibility that certain other road or roads might be accorded higher priority for development i-n the TNDP which had not yet been finalized. In such an event, the proiect will finance studies of such other road(s) as may be agreed between Government and the Bank Group.  - 17 - (iv) Technical Assistance 4.11 Quantity and quality of road maintenance is unsatisfactory in the absence of regular maintenance programs (para. 3.26). To help correct this problem, the project will include three Road Maintenance Engineers to assist in planning, coordinating and implementing a maintenance program, training of counterparts, and improving the traffic count system. The project will also provide one transport economist to assist with highway planning, project evaluation, maintenance programming and reviewing the country's road haulage licensing system (paras. 3.07, 3.22 and 4.03), and two training experts for RD's training school who will help alleviate the shortage of instructors (para. 3.16). 4.12 The project also includes technical assistance for MSB. Based on present needs, 22 positions have been identified for technical assistance to help alleviate the staffing shortage in MSB's workshops; these include 20 mechanical superintendents and 2 training experts. Two of the experts will assist at the headquarters workshop; each of the nine provincial workshops will also be assisted by two experts, one of whom will assist in the opera- tion of 5-6 district workshops supervised by each province. The two training experts will develop specific courses of instruction, prepare curricula and help impart on-the-job training and classroom instruction to mechanics. 4.13 The project will also provide one expert for MLGH to assist with the preparation and implementation of the Pilot Road Maintenance Program (para. 4.09). 4.14 Technical assistance to be provided in the project (Table 13) is crucial to the project's progress and success. Government agreed that it will employ by September 30, 1978, suitably qualified experts, under terms and conditions satisfactory to the Bank Group and in accordance with the project time schedule. Terms of Reference for the experts are given in Annex III. In view of the current housing shortage, Government undertook to take all reasonable action required to make available adequate living accommodations to experts financed under the proiect. Finally, an agreement with Government was reached that it will prepare by September 30, 1978 a program satisfactory to the Bank Group for the career development of local staff in RD, and carry out such program thereafter. C. Cost Estimates 4.15 Total project cost, including contingencies, is estimated at US$26.7 million. The foreign exchange component is estimated at US$22.5 milllion or 84% of the total cost. No taxes and duties are involved in the project. A breakdown of costs (in November 1977 prices) is shown below.  - 18 - Foreign Local Foreign Total Local Foreign Total Exchange -----(K million)--- ---(US$ million)---- % Item a) Road Maintenance Equipment i) Procurement of new equip- ment including spare parts 0.61 7.71 8.32 0.76 9.64 10.40 93 ii) Rehabilitation of existing existing equipment 0.12 0.37 0.49 0.15 0.46 0.61 75 iii) Spare parts for existing equipment 0.08 0.62 0.70 0.10 0.77 0.87 88 b) Workshop Equipment and Tools, and Training Aids i) Workshop equipment and tools 0.08 0.90 0.98 0.10 1.12 1.22 92 ii) Training aids 0.01 0.06 0.07 0.01 0.08 0.09 89 c) Consultant Services i) Assistance in reorganiz- ing MSB 0.03 0.11 0.14 0.04 0.14 0.18 80 ii) Preparation of bid documents for road maintenance and workshop equipment 0.01 0.03 0.04 0.01 0.04 0.05 80 iii) Feasibility study and, if justified, detailed engineering of road(s) 0.13 0.51 0.64 0.16 0.64 0.80 80 d) Pilot Rural Road Maintenance Program 0.40 0.40 0.80 0.50 0.50 1.00 50 e) Technical Assistance 0.83 3.33 4.16 1.04 4.16 5.20 80 Subtotal 2.30 14.04 16.34 2.87 17.55 20.42 86 f) Contingencies /a i) Physical 10% 0.23 1.40 1.63 0.29 1.75 2.04 ii) Price: (17% foreign, 33% local) 0.83 2.56 3.39 1.04 3.20 4.24 Total Project Cost: 3.36 18.00 21.36 4.20 22.50 26.70 84 /a Physical contingencies, to cover unforeseen quantity increases, are equivalent to 10% of items a-e. Price contingencies to provide for anticipated cost increases over the implementation period are equivalent to an overall 19% (17% foreign, 33% local) of the cost of items a-e, including physical contingencies, and were derived as follows: 1977 1978 1979 1980 1981 Foreign Costs: Items a-b 7.5% 7.5% 7.5% - - Items c-e 8% 8% 8% 8% 8% Local Costs: Items a-e 15% 15% 15% 8% 8%  - 19 - 4.16 Project costs have been arrived at as follows: (a) Road Maintenance and Workshop Equipment, Tools, Training Aids and Spare Parts: based on MSB estimates and recent quota- tionc by Zambian suppliers which reflect c.i.f. Lusaka prices in November 1977, and have been found reasonable; (b) Consultant Services: based on man-months required and on costs of such services in Zambia and other similar countries, and are found reasonable; (i) Assistance in Reorganizing MSB: includes 20 man-months, a net average of US$6,000 per man-month; (ii) Preparation of Bid Documents for Road Maintenance and Workshop Equipment, Tender Procedures and Bid Evaluation: includes 6 man-months, a net average of US$6,000 per man-month; (iii) Feasibility Study and Detailed Engineering of Mansa- Kawambwa-Nchelenge Road or the road(s) to be agreed between Government and the Bank Group: includes 105 man-months over a 1-3/4 year period, a net average of US$6,000 per man-month, plus needed vehicles and equipment; (c) Technical Assistance: based on costs of such services in Zambia and other similar countries, and are found reasonable. Costs cover 1,032 man-months (Table 13) over a 3-year period, a net average of US$5,000 per man-month; and (d) Rural Road Maintenance Program: a notional amount has been in- cluded for setting up a few small workshops/offices, key staff housing, road camps, and basic equipment and tools to meet the needs of two Rural Councils. D. Financing 4.17 The total project cost is estimated at US$26.7 million, with a for- eign exchange component of US$22.5 million. The project will be financed by an IDA credit and a Bank loan totalling US$22.5 million (US$11.25 million each) which will cover 100% of the foreign exchange component of the proj- ect's cost. The Government will contribute US$4.2 million which will cover the remaining costs of the project. The Government will also finance recur- rent expenditures needed to carry out the project, estimated at about US$65 million equivalent over the project period (see Table 6, notes 5 and 6).  - 20 - E. Execution and Procurement 4.18 RD under MPW, MSB under the Defense Division of the President's office and MLGH, assisted by technical experts to be provided, will be res- ponsible for project execution. The Government agreed that suitably quali- fied consultants will be engaged on terms and conditions acceptable to the Bank Group, to assist Government in reorganizing MSB, to prepare bid docu- ments, tender procedures and bid evaluation for road maintenance and workshop equipment, the feasibility study, and detailed engineering. Detailed engineer- ing will be undertaken if the proposed road(s) included for study is considered economically justified by both the Government and the Bank Group. The project is scheduled to begin in mid-1978 and end in mid-1982. The project implemen- tation schedule, the details of which were confirmed with Government, is shown in Chart IV. Also agreed were arrangements for quarterly reporting on progress of project implementation and the requirement of preparing an evaluation report promptly after project completion. 4.19 The new road maintenance and workshop equipment, including a supply of spare parts, estimated to cost about US$11.6 million equivalent, excluding contingencies, will be procured on the basis of international competitive bidding in accordance with Bank Group Guidelines with separate contracts for each type or group of similar types of equipment. The contracts will provide for delivery of 75% of the equipment in 1979 and that remaining in 1980. Sup- pliers of equipment not already represented in the country will be required to provide training of mechanics and plant operators. The suppliers will also be required to provide an adequate organization and maintain a reasonable inventory of spare parts in Zambia. The spare parts required for rehabilita- ting equipment and those required for keeping existing equipment in working order, and training aids, estimated to cost about US$1.5 million equivalent, excluding contingencies, would involve a wide range of items of various makes and are unlikely to attract international competition. These will be procured, after calling competitive quotations from established suppliers within the country and abroad, in accordance with Government procurement procedures which are satisfactory. Similarly, equipment, materials and other items required for the pilot rural road maintenance program are unlikely to attract inter- national competition and will be procured according to normal Government pro- cedures. The Government agreed that orders for road maintenance and workshop equipment, spare parts, tools and training aids will be placed only after requisite technical experts for RD and MSB are employed. F. Disbursements 4.20 Bank Group funds will be disbursed on the following basis: (i) 100% of foreign expenditures for road maintenance and workshop equipment, tools, training aids and spare parts imported directly from abroad;  - 21 - (ii) 70% of expenditures on road maintenance and workshop equipment, tools, training aids and spare parts imported and procured locally; (iii) 50% of expenditures for Pilot Rural Road Maintenance Program; (iv) 80% of expenditures for consultant services and tech- nical assistance; and (v) retroactive financing of US$180,000 will be required to meet consultants' fees for assistance in reorganizing MSB and preparing bidding documents and evaluating bids (para. 4.08). A schedule of estimated disbursements is shown in Table 14. 5. ECONOMIC EVALUATION Introduction 5.01 The road network in Zambia is rapidly deteriorating because of inadequate maintenance. This means that investment already made on the roads is being lost, particularly on bitumen roads which, if not properly maintained, will need costly remedial work in a few years. Many of the bitumen roads serve important mining and industrial areas, and have traffic levels in excess of 400 vpd. Traffic on these roads is projected to increase at 7% p.a. during the next ten years. The international routes to the north and east have played a particularly vital role since the closure of the Rhodesian border in 1973, as substantial volumes of imports and exports have had to be transported by road, resulting in higher traffic levels and a higher percentage of heavy traffic. Many gravel roads are deteriorating into earth roads because they are not being regravelled as required. This could even- tually impede economic growth since about 65% of the population live in rural areas and depend on such roads to market their produce, purchase agricultural inputs, and reach health, education and other government facilities. Selection of Roads for the Project 5.02 Owing to the limited availability of local funds for road mainte- nance, it is not possible to improve maintenance simultaneously over the whole road network. Therefore, RD and the Bank Group have tentatively identified priority roads to receive maintenance under the project, which will form part of Phase I of a maintenance program (para 4.03). Maintenance priorities have been identified as (i) routine maintenance of the whole road network, (ii) re- sealing of about 2,000 km of bitumen roads, and (iii) regravelling of 750 km of heavily trafficked gravel roads (Table 7). The 2,000 km of bitumen roads  - 22 - selected have not been resealed for some seven or more years, and if reseal- ing does not take place shortly, many of the roads will need major restora- tion, involving far greater costs than those incurred for regular routine and periodic maintenance. These roads are some of the most heavily trafficked in Zambia with an average level of 380 vpd, rising to as high as 3,260 vpd. The 750 km of gravel roads selected are in poor condition and are economically important since they provide access to mining and agricultural areas; their traffic levels, averaging 200 vpd to as high as 400 vpd on certain roads, are some of the highest in the country for gravel roads. Many of the roads are due for upgrading, but none of them appear to have been included in proposals for the TNPD (para. 3.22) since Government is concentrating on its policy of connecting provincial capitals with paved roads. Where RD was unable to provide data, information on road conditions and traffic levels was obtained from PREs, and substantiated whenever possible by Bank Group staff. Under technical assistance included in the proposed project, one of the duties of the transport economist and road maintenance engineers (para. 4.11) will be to review the roads included in the project, to establish priorities for execution, and to draw-up economic criteria for levels of both routine and periodic maintenance. Benefits 5.03 Benefits from routine and periodic maintenance of the 2,000 km of bitumen roads, and 750 km of gravel roads have been calculated. These bene- fits include cost savings arising from resealing the bitumen roads which, if not resealed during the project period, will need costlier treatment, such as bituminous overlays, much earlier than if resealing takes place. Benefits have also been calculated for the remaining 2,890 km of bitumen roads, 6,530 km of gravel roads and 6,850 km of earth roads which will receive routine, but not periodic, maintenance. The main benefits estimated will accrue to (i) road users as savings in vehicle operating costs resulting from improved routine and periodic maintenance, and (ii) Government in the form of cost savings on bitumen roads. 5.04 No detailed study has been carried out in Zambia during the last few years on vehicle operating costs for different surface types of road. The Bank has therefore made estimates based on data collected from Zambia, and comparable data from other countries. Unit user costs without the project, increasing over time because of further deterioration of the selected roads, were compared with unit user costs after improved maintenance, which should remain at approximately the same level during the life of the project (Annex IV), Thus unit benefits gradually increase over the life of the project, Economic Rate of Return 5.05 After comparing project costs and benefits, net of taxes and duties, with the continuation of presently inadequate maintenance efforts, the rate of return on the entire project is 44%. The rate of return for both the roads included in the periodic maintenance program and the remaining roads which will receive only routine maintenance is also 44%. These estimates  - 23 - are based on the shadow rate of exchange of K1.0 = US1.0. Using the current rate of exchange, KO.80 = US$1.0 the rates of return are 41% for the periodic maintenance program and 43% for the routine maintenance program. The dif- ference of 25% between the actual and shadow exchange rate reflects the influence of existing tariffs, quotas and export subsidies; however, the difference has little effect on the project's rate of return as both costs and benefits have similar foreign cost components. The first year benefit for both the routine and periodic maintenance programs is 26%, discounted at a rate of 12%. 5.06 The benefit cost ratio discounted at 12% for the entire project is 1.98:1; for the periodic maintenance program, it is 1.65:1 and for routine maintenance 2.29:1. Sensitivity Analysis 5.07 While the project as defined is economically sound, there are two risks which could affect its progress. One possible risk is that there will be a delay in filling essential posts in RD and MSB, which will mean a con- sequant delay in ordering equipment and implementing the maintenance programs. Nevertheless, by delaying implementation of road maintenance, the economy will suffer because of further deterioration of the road network and consequent increase in vehicle operating costs, earlier failure of bitumen roads involv- ing costly remedial work, and more gravel roads reverting to earth road status. Another risk is that, even if technical assistance is in place, MSB's performance may improve more slowly than expected. This could mean delays in repairing RD's vehicles and equipment, forcing curtailment of the routine and periodic maintenance programs. However, the rate of return would still be 12% for both programs even if only 45% of the periodic maintenance program and 40% of the routine maintenance is carried out during the project period; however, this is not regarded as likely. Therefore, the project is still economically sound. 6. AGREEMENTS REACHED AND RECOMMENDATIONS 6.01 Agreement with Government was reached that: (i) all such actions as shall be necessary will be taken to ensure enforcement of the legal dimensions, axle loads and weight limits of vehicles (para. 3.08); (ii) vacant posts of the three Senior Executive Engineers and one Chief Materials Officer in RD will be filled by September 30, 1978, by employing additional staff with appropriate qualifications and experience (para. 3.10); (iii) to promote Zambianization a program, satisfactory to the Bank Group, for the career development of local staff in RD will be prepared by September 30, 1978, and such program carried out thereafter (paras. 3.11 and 4.14);  - 24 - (iv) a plan of action, satisfactory to the Bank Group, will be drawn up by December 31, 1978 to reorganize MSB, such plan to include specific recommendations for improving organiza- tional and operational procedures and meeting staff require- ments of MSB. Implementation of the plan will be completed within another nine months. Further, MSB will be maintained exclusively for services related to non-military vehicles, equipment and plant (para. 3.15); (v) training programs for RD and MSB will be satisfactory to the Bank Group (paras. 3.16, 3.18); (vi) RC's road maintenance staff will be trained in the RD training school (para. 3.17); (vii) funds required for the maintenance of roads administered by RD:, estimated at current prices to aggregate the equiva- lent of US$71 million, and those for maintenance and re- pairs of equipment and MSB workshops, estimated to aggre- gate the equivalent of US$12.2 million for the years 1979 through 1982, will be provided by Government; in addition the Government and the Bank Group will annually discuss the appropriateness of maintenance funds allocated to RD and MSB (para. 3.19); (viii) technical assistance for RD, MSB and MLGH will be employed by September 30, 1978, under terms and conditions satis- factory to the Bank Group (para. 4.14); (ix) all reasonable action required will be taken to make available adequate living accomodations to experts financed under the project (para. 4.14); (x) the progress of project implementation will be re- ported to the Bank Group on a quarterly basis and an evaluation report will be prepared promptly after project comppletion (para, 4.18); (xi) suitably qualified consultants for assistance in re- organization MSB, preparing bid documents for road maintenance and workshop equipment, the feasibility study and detailed engineering will be engaged on terms and conditions acceptable to the Bank Group. Detailed engineering will be undertaken if the pro- posed road(s) included for study is considered eco- nomically justified by both the Government and the Bank Group (para. 4.18); and (xii) orders for road maintenance and workshop equipment, spare parts, tools and training aids will be placed only after requisite technical experts for RD and MSB are employed (para. 4.19)e  - 25 - 6.02 Also confirmed with Government was the project implementation schedule shown in Chart IV (para. 4.18). 6.03 The employment of consultants for drawing up a plan of action to improve the efficiency of MSB is a condition of loan/credit effect 9eness (para. 3.15). 6.04 With the agreements and under the conditions indicated above, the project is suitable for an IDA credit and a Bank loan totalling US$22.5 mil- lion (US$11.25 million each) to the Government of Zambia. The IDA credit would be on standard terms and the Bank loan would have a term of 20 years including 5 years of grace. April 17, 1978   ZAMBIA THIRD HIGHWAY PROJECT Zambia's Imports and Exports by Routes (1970-76) ('000 tons) Lobito Dar es Salaam Mombasa Malawi 1 Mozambique Rhodesia (Rail) Road Rail Road Road/Rail Road/Rail Rail Air Other Total Imports 118 248 18 1,293 4 1,681 1970 Export 187 253 6 398 4 848 Imports 269 295 29 1,048 7 1,648 1971 Exports 176 221 9 390 2 798 Imports 144 202 39 864 8 1,257 1972 Exports 170 210 7 467 854 Imports 418 200 68 109 35 25 4 859 1973 Export 389 284 45 41 5 49 813 Imports 438 271 86 125 29 33 982 1974 Exports 509 319 86 10 924 Imports 257 311 69 22 129 30 20 41 879 1975 Exports 309 349 46 2 66 10 782 Imports 4 248 326 22 71 58 9 21 759 1976 Exports 131 323 349 12 48 35 898 1/ By road through Zambia to ahd from the Malawi and Mozambique railways. Source: MPTC and CPO, June 1977 April 1978  TABLE 2 ZAMBIA THIRD HIGHWAY PROJECT '.oad Network Maintained by Roads Department (Km) A. By Administrative Classification International Main District Total Main (T) (M) (D) Class I Bitumen 2,677 1,384 500 4,561 Class II Gravel 88 1,760 925 2,773 Class III Gravel 127 447 4,263 4,837 TJnclassified Earth 175 18 6,655 6,848 Total 3,067 3,609 12,343 19,019 B. By Surface Type 1972 1973 1974 1975 1976 Class I Bitumen 3,976 4,099 4,456 4,561 4,561 Class II Gravel ) ) 7,434 7,391 7,513 7,610 7,610 Class III Gravel ) Unclassified Earth 7,149 7,281 6,992 6,848 6,848 Total 18..559 18,771 18,961 19,019 19 019 Source: Roads Department, June 1977 April 1978  ZAMBIA THIRD HIGHWAY PROJECT New Registration of Motor Vehicles (1970-75) Commercial Vehicles Vehicles 1/ Passenger Vans and Construction Motor Cycles/ Total new Used Year Cars Buses Vanettes Trucks Vehicles Scooters Vehicles Elsewhere Total 1970 5,984 54 3,743 1,470 622 1,657 13,530 1,851 15,381 1971 6,165 152 5,042 2,349 854 1,618 16,180 1,389 17,569 1972 5,539 274 4,321 1,747 836 1,824 14,541 507 15,048 1973 5,221 304 3,505 1,654 707 1,313 12,704 653 13,357 1974 6,667 279 4,870 2,165 1,100 1,332 16,413 596 17,009 1975 5,577 331 3,786 1,175 669 1,192 12,730 435 13,165 1/ Re-registration of vehicles previously registered outside Zambia and brought into the country. Vehicle Fleet Passenger Vans and Construction Motor Cycles/ Year Cars Buses Vanettes Trucks Vehicles Tractors Scooters Total Trailers 1970 63,317 668 17,589 11,626 645 4,053 6,835 104,734 4,807 1971 67,173 690 19,672 12,696 713 4,804 7,589 113,337 5,498 1972 78,852 769 22,402 13,850 1,019 5,381 8,889 131,16? 5,866 1973 85,315 780 25,214 14,511 1,129 5,986 9,114 142,049 6,075 1974 89,770 814 27,257 15,865 1,279 6,304 9,722 151,011 6,519 1975 1/ 94,259 855 29,438 17,293 1,484 6,777 10,208 160,314 6,845 1/ Estimated Source: Central Statistical Office, June 1977 April 1978  TABLE 4 ZAMBIA THIRD HIGHWAY PROJECT Roads Department Training School Courses 1971-1976 Staff Category/Course Title Total Number of Students Total 1971-1972 1973-1974 1975-1976 Drivers Vehicle Driving 9 33 71 113 Plant Operators Basic Course 44 11 43 98 Grader Operation 18 43 33 94 Front-End Loader Operation 20 13 29 62 Tractor Operation 28 21 22 71 Plant Operator Refresher Course 46 61 33 140 Maintenance of Plant and Vehicles 19 37 56 Subtotal 156 168 197 521 Road Gangers/Foremen Road Gangers Basic 40 - - 40 Road Gangers Part I 16 32 23 71 Road Gangers Part II 13 30 30 73 Road Gangers Advanced - 27 13 40 Work Supervision 7 9 48 64 Repair and Maintenance of Roads - 28 37 65 Road Administration - - 48 48 Plant and Vehicle Maintenance - 8 37 45 Concreting - - 29 29 Simple Survey - - 8 8 Subtotal 76 134 273 483 Road Superintendents Bailey Bridge Construction - 13 18 31 Supervisory Course 7 9 16 32 Simple Road Construction - - 10 10 Plant and Vehicle Inspection 10 6 - 16 Subtotal 17 28 44 89 Total 258 363 585 1,206 Source: Roads Department Training School, June 1977 April 1978  TABLE 5 ZAMBIA THIRD HIGHWAY PROJECT Roads Department Highway Expenditures (K million) Year New Construction Road Maintenance Total 1972 12.33 5.38 17.71 1973 4.33 5.45 9.78 1974 5.22 5.75 10.97 1975 14.67 6.29 20.96 1976 18.77 5.36 24.13 1977 (Authorized) 23.31 6.56 29.87 Source: Roads Department, June 1977 April 1978   3>0/304 AAL 6 TH110IH I GT[WA 2/R022E2T K '903 03/H _____ 1979 09 '30~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~19, T.2 't at '9.~~~~~~~~~~~~~~~~ -R -ii-1Z,i 'o 1 I .11 wy Trr T -" F.-12 1112 P.,s 6 1.2 3, 78,53 '4/1 /3 5'7 1928.3 2',02.2 ] . 8,329,9 erg 1.9 lipoelIt -1 / ~~~~~~~~~~~~~~~~~~~'73.- 3/1 3 39.7 31.,I9 32 3. - 127.6 377.5 493.1 ./u/p/t-t-er - - - 1~~~~~~~~~~~ ~~~~~ ~~0.3 ~ -.93,4 325.2 72,3 125.0 175. - -- --6.0 121.0 712H.30 +/_le - - .1 731,- 08. i 2252 2424. - - 75.2 902.2 973.2 99/, '/93 ~~~~~~~~~29,' I1"12.094.0 - - 9. 99 llo.6 t49.l q01ip9-5 19.01 in5.9 40.0 -- --- 10.9 39.0 40.0 frusibllits 99/dy, -`060 justifIed,' detIld 0t/90-c- otla-naa-0 / 261 I90) 173. 66.7 84,0 72,7 263.3 5162.6 316. 0 134.0 194.9 i217.0 510 640 9t.990-1 load'obt,dr '99 90+ ~ ~ ~ ~ ~ ~ ~~~~~~- - - '09, 26m '0. '02 9. 400.0 - -- 08.0 409.0 890.9 ctt- hoD oosisoaaco - - '~~~~~~~~~~~~~~~20.9. i1123.2. /,?.2 /j, 12". 1,404.3 272.2 /901.,2 1,221.4 8 32.0 3,328.0 4,199.0 r9t9 a-~~~~ /197) 9.9~~i / 0.9 261, 8'? / 661 .2,/ 9 / .' 39H. air3. 27.9 199.1 133,1 -229.8 9,494.6 1,634.4 Tra -c I/ 7. 140 7. 132.7 '22.03 1387,0 22~c 3 5 322 275.1 '6 39. 7a-- 369.3 1,369.1 1,877.4 7_ _ 1__ _2_6 3~ _b. __7__ - 13e 38 2 529, 978.H 1,309 7 j ,S. ~44.4 3i 3 0 i ___ iL__4__- _b__ - ,.I,59. 2,i. 17.998.5 _21,365.2 r09. 362/9R2N 2290l1T21R1 1,ao stf ,001.0 - 0,04, 0,395.9g - 4,096.9 4t, .06.,9 4,0446.9 3,221.9 2,721.6 11,576,7 - 15,376.7 90000, 0780-ets ast-/- 11'66.7 2,172.2 / 112,5 3 4,2,0 ,2. 12. 3,492.0 6,269.3 - .346.7 2,902.9 3,/9 ' I 05,7. 2 11,168.3, 21,733.7 .,., a/i/-Ill) 193 - - - 310,'~~~~~~~~~~~~5I 6/ 6,33. /"I 343,2 1,036.6 721.4 3 .' ,0.o 60L .2 a,,,9 99 2,360.2 1.1. o,H. .9 001 91,1 1' - -- .22' 6 /1,3 'A2LO~~~~~~~ 2/222,2 911.3 4,000 9 )0j,209 1,a./1,/ 3~~~~4 _ 3 33/9. foOl.' 3,134.7 29-l5,1707 .3 _ ,71' 3 .2112 ,4400o ry prs89. 20 0' "6.0I 600.0 1,509.0 ac. 1,222.0 2,20020 036. 3, ,5 ) 9 // 9c , . 9200.2 6.360,0~~~~~~~20 IIo - -o,l/I/0I3- 0, a1 2,b 9'.0 600 150. ' 9.0 I ' 1 0 a2 fi'2 2, 12n/ /10 2 33I,0 /2o ,' 6323 taot I .' ,! )6 LI7' LO " _IP) 1 1/3 20711, aO2.0 6,' - 2.0. "~~ 0 /6_.1) a!I a a T--7aFre 80/ , lao-1 12; 1980-02 '1 /',)It. /09 /ta.19t i- _ t-- 90 1/It-,, 92.0-I15 190309L, lo -; 2.4- to doa aE' 9' ,c .9c O -.911 /' /Oa/c69jcae -9/i 197832   TABLE 7 ZAMBIA THIRD HIGHWAY PROJECT Roads Included in the Project for Periodic Maintenance The kilometerage indicated is a tentative estimate of the road lengths that require resealing/regravelling during project implementation. A. Bitumen roads to be resealed Route Length Included in the Pro2ject (km) Livingstone - Kafue - Kafue Dam 230 Rhodesian border - Tunduma (Tanzanian border) 575 Kapiri Mposhi - Zaire border 175 Lusaka - Mchinji 220 Chingola - Solwezi 90 Mbala - Mpulungu 40 Ndola - Mufulira - Kalu)ushi 60 Masaiti - Luanshya 20 Kitwe - Kalulushi 10 Lusaka - Mongu 250 1/ Livingstone - Sesheke 80 1/ Bitumen length of M 18, from Kalulushi 20 Bitumen length of D55, from Chinsali 15 Batoka - Mamba Mine 90 Miscellaenous short district roads 125 Total 2,000 1/ Constructed early 1970s, but some sections will need resealing during implementation period of project. B. Gravel roads to be regravelled Length Included in the Project Route (km) Mutanda Turnoff - Kalengwa Mine Turnoff 105 Choma - Namwala 95 Kalulushi - Mutanda Turnoff 145 Landless Corner - Mumbwa 110 Mansa - Samfya 80 Malalika - Kabulonga 30 Choma - Musutu Mission 56 Monze - junction Choma - Namwala road 74 Nampunde Mine - Blue Lagoon Ranch 55 Total 750 Source: RD and mission estimates , June 1977 April 1978  ZAMBIA THIRD HIGHWAY PROJECT Road Maintenance Equipment Needs of Roads Department (Units) Routine Maintenance Units Heavy Total Available Zone District Province Maintenance Regravelling Resealing Require- in Working Economically Balance Type of Equipment x122 x29 x9 Unit x9 Unit x4 Unit x5 ment Condition Repairable Required Bitumen heater-sprayer (1000 gal) - - - - - 1 5 - - 5 Bitumen heater-sprayer (250 gal) - - - 1 - - 9 - - 9 Bitumen preheater-storage (1500 gal) - - - - 1 5 - - 5 Bulldozer (D4) - - - 1 - - 9 8 1 - Bulldozer (D6/D7) - - - - 1 - 4 11 - - Chip spreader, towed - - - - - 1 5 - - 5 Concrete mixer - 1 - - - - 29 33 - - Caravan trailer - - 1 - - - 9 6 - 3 Front-end loader, wheeled (1.5 cyd) - 1 - 1 1 1 47 17 14 16 Flat truck (7-9 ton) I _ 2 1 1 1 158 40 20 98 Fuel tanker (12-1500 gallon) - - 1 - - - 9 - - 9 Low loader (30 ton) - - 1 - - - 9 1 - 8 Motor grader (125 hp) 1 1 2 3 - 161 180 1/ - - Mini batch heating and mixing plant (5-7t/hr) - - - - - 1 5 - - 5 Mobile workshop - - 1 - - - 9 - - 9 Pneumatic tired roller (8-10 ton) - I - 1 1 1 47 15 4 28 Plate Compactor - 1 - 2 2 - 55 46 - 9 Pick-up truck/vannette - 1 2 1 1 1 65 54 20 - Steel wheeled vibratory roller (8-10 ton) - - - I - - 9 5 - 4 Tractor (120 hp) - - - 2 1 1 27 46 - - Trailer (4 ton) - - - 2 1 1 27 16 - 11 Tipper truck (7-9 ton) - 2 2 5 7 2 159 46 - 113 Water tanker (12-1500 zallon) - 1 1 2 2 - 64 8 2 54 Water pump - 1 1 2 2 - 64 81 - - 1/ Includes 87 new graders purchased from Canadian commodity credit. Source: Roads Department, Mechanical Services Branch and mission estimates, June 1977. April 1978  TABLE 9 ZAMBIA THIRD HIGHWAY PROJECT Road Maintenance Equipment to be Purchased Unit Cost Total Cost Type of Equipment Units Local Foreign Local Foreign - ________----K '000.---_________ Bitumen heater-sprayer 5 2.5 25.0 12.5 125.0 (1000 gallon ) Bitumen heater-sprayer 9 0.8 6.5 7.2 58.5 (250 gallon ) Bitumen preheater-storage (1500 -allon ) 5 0.8 6.2 4.0 31.0 Chip spreau&r, towed 5 0.4 4.2 2.0 21.0 Caravan trailer 3 0.7 6.5 2.1 19.5 Front-end loader, wheeled (1.5 cyd) 16 5.1 40.7 81.6 651.2 Flat truck (7-9 ton) 2x2 76 0.9 16.1 68.4 1,223.6 Flat truck (7-9 ton) 2x4 22 0.9 18.5 19.8 407.0 Fuel tanker(12-1500 gallon ) 9 0.9 16.5 8.1 148.5 Low loader (30 ton) 8 4.6 46.6 36.8 372.8 Mini batch heating and mixing plant (5-7 ton/hour) 5 1.8 16.0 9.0 80.0 Mobile workshop 9 4.0 40.0 36.0 360.0 Pneumatic tired roller (8-10 ton) 28 2.6 27.3 72.8 764.4 Plate Compactor 9 0.1 0.8 0.9 7.2 Steel wheeled vibratory roller (8-10 ton) 4 3.4 35.2 13.6 140.8 Trailer (4 ton) 11 2.6 - 28.6 - Tipper truck (7-9 ton) 113 0.9 15.0 101.7 1,695.0 Water tanker (12-1500 54 1.0 16.8 54.0 907.2 gallon ) 559.1 7,012.7 Spare parts (10%) 55.9 701.3 Total 615.0 7,714.0 Source: Mechanical Services Branch and mission estimates, June 1977. April 1978  TABLE 10 ZAMBIA THIRD HIGHWAY 'PROJECT Road Maintenance Equipment to be Rehabilitated Unit Cost Total Cost Type of Equipment Manufacturer Units Local Foreign Local Foreign