Uruguay - Third Highway Project

Document of 1i LPCO The World Blank FOR OFFICIAL USE ONLY Report No. P-3451-UR REPORT AND RECOMMIENDATION OF THE PRESIDENT OF' THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$45.0 MILLI TO THE REPUBLICA ORIENTAL DEL URUGUAY FOR A THIRD HIGHWAY E'ROJECT January 26, 1983 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = New Peso (Np) July 1982 December 1982 Np 1 = US$ 0.079 Np 1 = US$ 0.04 US$ = Np 12.734 US$ = Np 25.00 GOVERNMENT OF URUGUAY FISCAL YEAR 4 January 1 - December 31 WEIGHTS AND MEASURES Metric System GLOSSARY OF ABBREVIATIONS AFE Administracion de los Ferrocarriles del Estado (National Railways Administration) ANP Administracion Nacional de Puertos (National Port Administration) DNT Direccion Nacional de Transporte (National Directorate of Transport) Intendencias Regional Administrations MTOP Ministerio de Transporte y Obras Publicas (Ministry of Transport and Public Works) SEPLACODI Secretaria de Planificacion, Coordinacion y Difusion (National Planning Secretariat) TPU Transport Planning Unit Vialidad National Highways Directorate  FOR OFFICIAL USE ONLY URUGUAY THIRD HIGHWAY PROJECT Loan and Project Summary Borrower: Republica Oriental del Uruguay Executing Agencies: The Ministry of Transport and Public Works (MTOP) for administering the technical assistance component; the National Highways Directorate (Vialidad) withini MTOP for the reconstruction and rehabil:Ltation works; the Intendencias (Regional Administrations) for the feeder road program; the National State Railways for the establishment of a railway cost accounting system. Amount: US$ 45.0 million equivalent, including the capitalized front:-end fee of about US$335 thousand. Terms Repayable over 15 years, including 3 years of grace, at the Bank's standard variable interest rate. Proj ect Description: The proposed project would assist the Government in carrying out its Five-Year Highway Investment Program and National Feeder Road Program. The project would consolidate and strengthen the planning,programing and executing capacity of the Ministry of Transport and Public Works, and of the Intendencias. The project would improve coordination among transport modes and assist the National Railways Administration in establishing a cost accounting system. Beneficiaries: The Government of Uruguay through reduced highway maintenance costs; road users through lower operating costs and transport tariffs; agricultural producers through provision of all-weather feeder roads; the National State Railways through initiation of a cost control program. Risks Past experience with road projects in Uruguay has shown delays in the tender and contracting as well as in the construction stages of project implementa- tion. The arrangements and schedule for the tendering phase of the project were carefully reviewed and agreed with the MTOP to avoid these problems in the future. While there is a risk that fiscal constraints may require reductions in the Highways Investment Program, an analysis of the expected financial resources of the MTOP and the composition of the Program indicates a considerable cushion to ensure satisfactory execution of the projecte This doument ha a festrictd distribution and may be used by recipients only in the performance of hir ofial dutis It contents may not otherwise be ciisclosed without World Bank authorization.  - ii - Estimated Costs Local Foreign Total