Rwanda - Sixth Highway Project

Document of The World Bank FOR OMCIL USE ONLY Cg. ggPY-cQ; Repmn No. P-4186-RW REPORT AND RECOiMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT IN AN AMOUNT EQUIVALENT TO SDR 10.7 MILLION AND A SPECIAL AFRICAN FACILITY CREDIT IN AN AMOUNT EQUIVALENT TO SDR 14.5 MILLION TO THE RWANDESE REPUBLIC FOR A SIXTH HIGHWAY PROJECT November 8, 1985 Iks dim t has a insc dMbutk. sa may be mWd by reeilts sly In fee pedefom of tber ofei dute. It estmis may na tbnwbe he SacIcd vito.t Wod Bnk autbodnoa.  CURRENCY EQUIVALENTS (as of end May 1985) US$1.00 = Rwandese franc (RwF) 103.7 RwF 100 = US$0.9b4 (Project data are based on the exchange rate of US$1.00 = RwF 105) FISCAL YEAR January 1 - December 31 GLOSSARY OF ABBREVIATIONS AfDB African Development Bank BADEA Arab Bank for Economic Development in Africa DANIDA Danish International Development Agency ECO Engineering and Control Department FED European Development Fund KFAED Kuwait Fund for Arab Economic Development MC Ministry of Communications MOTC Ministry of Transport and Communications iPW Ministry of Public Works PED Planning and Engineering Department of the Roads Branch RB Roads Branch of the Ministry of Public Works STIR Societe des Transports Internationaux du Rwanda UNDP United Nations Development Program vOC Vehicle Operating Costs VPD Vehicles per Day WD Works Department of the Roads Branch WFP World Food Program WEIGHTS AND MEASURES Metric System Metric British/US Equivalents 1 meter (m) = 3.3 feet I hectare = 2.47 acres 1 kilometer (km) = 0.62 mile I square kilometer (km2) = 0.39 square miles (sq. mi.) I kilogram (kg) = 2.2 pounds (lb) I liter (1' = 0.26 US gallons (gal) 0.22 British gallon (imp gal) 1 metric ton (m ton) = 2,204 pounds (lb)  FOR OMCIAL USE ONLY (i) RWANDA SIXTH HIGHWAY PROJECT Credit and Project Summary Borrower: Republic of Rwanda - Amount: An IDA credit of SDR 10.7 million (US$11.0 million equivalent) and a Special African Facility credit of SDR 14.5 million (US$ 15.0 million equivalent) Terms: Standard IDA terms Project: Description Ci) Objectives: (a) to improve public expenditure planning in the highway sector by assisting the Government to develop appropriate road maintenance and construction programs; (b) to strengthen donor coordination in the sector with a view to channeling external aid towards higher priority needs; (c) to improve road maintenance and construction planning by the Ministry of Public Works Road Branch (RB); (d) to strenghten RB for increased operational effectiveness; and (e) through effective road maintenance, to reduce road transport system costs to the economy; (ii) Components: The project, which is a part of the Government's 4-year (1986-89) road maintenance and reconstruction program, would include selected maintenance and reconstruction works and institution-building during the program period. It would provide for: (a) road maintenance works by force account over a 4,060 km network; (b) reconstruction of the Kigali-Gatuna road; (c) improvement of the Government's soils laboratory; (d) staff training; and (e) consulting services for development of better techniques for maintenance of communal roads, and for transport planning; (iii) Benefits: The project would lower road transport system costs through a reduction of vehicle operating costs, deferred costly road reconstruction, and improved road safety; (iv) Risks: The main risks facing the project are implementation delays and cost increases that could arise if shortages develop in imported fuel, parts and materials as a result of the tight foreign exchange situation of the country and/or transport difficulties and delays in neighboring countries. The measures included under the project should substantially reduce these risks. I This docunent has a restricted distribution and may be used by recipients only in the performance of their offwcial duties. 'ts contents may nDt otherwise be disclosed without World Bank authorization.  (ii) Estimated Project Costs Local Foreign Total US$ million I. Poad Maintenance Works 8.87 16.91 25.78 II. Improved facilities for the soils laboratory 0.08 0.70 0.78 III. Training 0.17 1.12 1.29 IV. Reconstruction of Sections I & II of Kigali-Gatuna Road 1/ 2.15 14.44 16.59 V. Consulting Services 0.37 3.44 3.81 Total Base Cost 11.64 36.61 48.25 Contingencies Physical (on Item IV) 0.22 1.52 1.79 Price 2.17 6.98 9.15 Total Cost 21 14.03 45.11 59.14 Project Financing Plan Local Foreign Total X US million Total Proposed IDA Credit and Special African Facility Credit - 26.0 26.0 44 Reallocation from Fifth IDA Highway project 3/ - 5.0 5.0 8 UNDP - 1.0 1.0 2 France - 0.4 0.4 1 BADEA - 7.6 7.6 13 WFP 0.5 1.4 1.9 3 Government-Recurrent Budget 11.3 3.7 15.0 25 Development Budget 2.2 - 2.2 4 Total Financing 14.0 45.1 59.1 100 Estimated Disbursements FY87 FY88 FY89 FY90 (US$ million) Annutal 3.8 9.7 7.8 4.7 Cumulative 3.8 13.5 21.3 26.0 Economic Rate of Return: 46.2% Map: IBRD 18940 - Rwanda: Sixth Highway Project 1/ The European Development Fund (FED) plans to finance Section III of this road. 2/ Including taxes on purchases financed by Government; estimated at US$1.03 million. 3/ Credit 1250-RW, signed June 9, 1982 (ref. para. 45).  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON PROPOSED CREDITS TO THE RWANDESE REPUBLIC FOR A SIXTH HIGHWAY PROJECT 1. I submit the following report and recommendation on a proposed development credit and a Special African Facility credit to the Republic of Rwanda in a total amount of SDR 25.2 million (US$26.0 million equivalent) on standard IDA terms to finance a sixth highway project. PART I - THE ECONOMY 2. A Country Economic Memorandum (Report No. 4059-RW) was distributed to the Executive Directors on May 20, 1983 which discussed economic developments in Rwanda until that date. These developments, updated where possible, are snmmarized below. Country data are provided in Annex I. 3. Rwanda's salient characteristics include its small size, an annual population growth rate of 3.7 percent (ranking among the highest in Africa), a population density (in terms of agricultural land) of about 390 per square km (slightly higher than that of India but about four times that of Zaire and about eight times that of Tanzania), hilly terrain and high average altitude, a landlocked position, lack of natural resources (including shortage of arable land), underdeveloped physical and institutional infrastructure, and a very low level of development as measured by a variety of social as well as economic indicators. These indicators include a per capita income of about US$270 (1983), among the lowest in the world; an average life expectancy of 44 years; and an adult literacy rate of 40 percent. 4. The country is heavily dependent on agricultural exports (coffee, tea, pyrethrum, cinchona) which provide 75 percent of its foreign exchange earnings. Rwanda's manufacturing base is narrow, and the growth of modern manufacturing is limited by the small size of the market and the lack of raw materials, marketing facilities, entrepreneurial skills, and skilled manpower. The country, consequently, imports capital goods, steel, petroleum products, cement and other construction materials, and virtually every modern consumer product. Its merchandise trade is hampered by high transportation costs and dependence on neighboring countries for access to the sea ports of Mombasa and Dar-es-Salaam. 5. Despite these constraints, Rwanda has made a creditable effort toward economic and social development. During the 1976-80 period, the country managed to satisfy its subsistence needs and to make important advances not only in agriculture but in other fields such as education, health, water supply, and small-scale industry. It succeeded in building basic transport and communication infrastructure and set in place a state  -2- administrative apparatus serious about development. These achievements reflect the Government's commitment to economic and social progress, as well as its prudent fiscal, balance of payments and debt management policies. At the same time, Rwanda has been able to attract substantial volumes of external aid from a great diversity of sources, confirming donor perceptions that Government is indeed development-oriented and is pursuing generally appropriate objectives. The Government's efforts during this period were significantly helped by favorable weather conditions and the coffee boom of the late 1970's. 6. Achievement and good fortune notwithstanding, development efforts in Rwanda have not alleviated the fundamental problems which continue to compromise development prospects: population growth, increasingly at odds with land availability, an undiversified economic structure, Government's limited capacity to provide social services, and the economy's inability to generate jobs either outside or within the rural sector. Though foodcrop output has increased sufficiently to feed the growing population, it has apparently done so at a cost to the land's long-term fertility. Agricultural land use in Rwanda has reached a point where there is little fallow or grazing area left. The rapidly growing population has resulted in serious deforestation, accompanying erosion, and has required the cultivation of marginal lands with a fragile ecology. Concomitant with these adverse trends has been a deterioration of nutritional standards induced by the shift to traditional high-yield, high-calorie, but low-protein crops. The limited success of Government's efforts has been largely due to the country's structural constraints (among them the critical population problem), institutional weaknesses (stemming largely from shortage of skilled personnel), and insufficiency of domestic financial resources. At the same time, the shortage of skilled personnel, fragmentation of institutional responsibilities, and poor interagency coordination have limited the country's capacity to absorb external resources. 7. The Rwandese authorities have taken steps to address these problems. Of particular importance have been actions concerned with the extremely rapid population growth, and the lack of education and training. In 1981, the Government established the National Population Office (ONAPO) to plan, coordinate, and monitor all population activities. ONAPO has started to sensitize the population about the implications of excessive demographic pressure on the country's limited resources; a few pilot family planning programs have been set up; and a nationvide fertility survey, now completed, is expected to provide valuable information on the potential demand for family planning. Obviously, the impact of these measures will be felt only in the long run. To address the problem of lack of education and training, the Government introduced an education reform in 1979 which - after subsequent adjustment - was responsive to the country's needs, hut whose implementation has been hampered by financial constraints and the lack of teachers. 8. A quantitative assessment of Rwanda's recent economic performance can only be tentative, as the national account estimates have serious shortcomings. These estimates suggest that, compared to the period of 1978-1980, during which the GDP grew by about 6 percent annually, economic growth in Rwanda slowed down during 1983-1984 -- GDP grew on average by 3.3 percent p.a. - mainly on account of a downswing in tertiary sector  -3- activities. Balance of payments and budgetary constraints impinged heavily upon trade and transport activities whose rapid growth in the past had been facilitated by greatly enlarged availabilities of foreign exchange and budgetary revenues. Budgetary austerity measures introduced since 1983 resulted in stagnation of Government's expenditures in real terms during the past two years. Notwithstanding this domestic recession, the manufacturing sector expanded its productive capacity and improved its capacity utilization due, in part, to the import restrictions which limited foreigrn competition. Mining continued the decline that started in 1980 due to persistent financial and managemenc problems of the major mixed-ownership company (SOMIRWA) which is now being liquidated. In agriculture, the sluggish performance of the food crop production has been partially offset by the rise in the production of export crops. 9. Rwanda's external position came under strong pressure, as the volume of imports continued to expand at a time when export earnings were declining. Since 1981, the total value of exports has been consistently below their 1977-80 levels, reflecting the decline in world coffee prices rather than a shortfall in export volume. The terms of trade deteriorated by about 24 percent between 1979 and 1984. In an attempt to arrest the deterioration of the balance of payments, the Government adopted - beginning in 1983 - what they expected would be temporary measures, including licensing, prior deposit requirements and increased import tariffs. The restrictions aimed mainly at curtailing imports of non-essential consumption goods as well as those of locally produced commodities. The Rwandese authorities also shifted the peg of the Rwandese franc (in September 1983) from the US dollar to the SDR, entailing a 5.2 percent depreciation vis-a-vis the US dollar. These measures, coupled with some improvement in the terms of trade in 1984 (with respect to the 1981-1983 period) helped to reduce the current account deficit to about 9 percent of GDP in L984 as compared to 12 and 11 percent, respectively, in 1982 and 1983. 10. On the budgetary side, the authorities failed to realize that the high level of tax revenues recorded in 1979 and 1980 was a temporary phenomenon not justifying a permanent increase in expenditures. This failure reflected a major weakness in the assessment of resource availability and prospects. As a result, the sharp decline in revenues from coffee export taxes beginning in 1981, together with increases in current outlays (in order to achieve the social objectives of the Plan), resulted in an overall budgetary deficit equivalent to about 2 percent of GDP in both 1982 and 1983 (as compared to a surplus of 0.9 percent in 1980.) Concern over the worsening budgetary situation led Government to introduce corrective fiscal measures. In 1984, the growth of current expenditures (in nominal terms) was limited to 2.3 percent (compared to 36 and 10 percent in 1981 and 1982, respectively). The growth of public sector employment was held under 0.5 percent - the education sector was exempted in order to achieve the revised targets of the 1979 Education Reform. This represented a major break from Government's past policy of practically guaranteeing" employment to every secondary-school graduate. Large reductions were also decided in net cransfers to parastatals. Henceforth, state enterprises of a commercial or industrial nature will not be granted budgetary subsidies and will have to resort to commercial bank financing. On the revenue side, despite an upward revision of  -4- import duties on luxtury goods and a more progressive tax structure on wages, the tax ratio to GDP remained relatively low at 9 percent. The same austerity measures have heen included in the 1985 budget- 11. Government has been traditionally conservative in its monetary and credit policies. Inflationary pressures have arisen mainly from supply shortages caused by frequent disruptions of supply routes through neighboring countries, high international transport costs, and increased prices of imports and seasonal fluctuations in the price of domestic foodstuffs. Inflation averaged 10.6 percent per annum during 1977-82, it peaked at 12.6 percent in 1982, reflecting mainly the substantial increases in electricity and water tariffs and educational fees. In 1983 and 1984 inflation was down to 6.6 and 5.4 percent, respectively. 12. Rwanda has been one of the most favored beneficiaries of foreign aid in recent years. Per capita, disbursements of net official development assistance (ODA) have been above US$30, much larger than the average for Africa. During the period 1981-84, grants comprised about 80 percent of total external aid flows, and were provided mainly by Belgium, the Federal Republic of Germany, and France. In view of its level of development, Rwanda will need external assistance for a long time to come. Even maintaining per capita income at the current low level - a very modest objective indeed - will require a continuation of assistance at least at the current level, given population growth and export constraints. The donor community should make efforts to increase its assistance, provided Rwanda continues to pursue sound macro-economic, sectoral (particularly in agriculture), and population policies. 13. Rwanda's medium- and long-term external public debt is relatively small, amounting to US$220 million at end-1983, equivalent to about 15 percent of CDP. Most of Rwanda's external debt was contracted on highly concessionary terms; the grant element was over 70 percent on average during the 1972-84 period. Due to the concessionary nature of these loans, the debt service payments on medium- and long-term debt are relatively low: 7.0 percent of exports of goods and nonfactor services in 1984. Hence, there remains scope for further borrowing. However, given the poverty of the country, its overwhelming constraints and vulnerability, and its unfavorahle terms of trade prospects, external funds should continue to be provided in the form of grants or loans at highly concessionary terms, and include a high proportion of local cost financing and non-project assistance. PART II - THE BANK GROUP ASSISTANCE 14. The Bank Group assistance, started in 1970, was initially focused on the improvement of the road network and the strengthening of agricultural production. As of September 30, 1985, Rwanda has received twenty-four IDA credits totalling USS247.2 million: eight for agriculture (37 percent); five for roads (28 percent); three for DFC's (7 percent); two for education (7 percent); one for telecommunications (3 percent); two for technical assistance (4 vercent); one for water supply (5 percent) and two for power (10 percent). There have been no Bank loans. Three IFC investments (one of US$535,000 for a  -5-. tea factory; a second of US$226,000 with contingent equity commitment of up to US$60,000 to expand the tea factory; a third of US$249,000 also to expand the tea factory) were signed in 1976, 1980 and 1985, respectively. Annex II contains a summary statement of IDA credits and IFC investments. 15. In fiscal years 1982-84, disbursements for Rwanda totalled US$49.1 million, compared to new commitments of US$86.2 million. The annual disbursement rate increased steadily over this period, to reach about 25 percent in FY85 which is above the average for countries of the Eastern and Southern Africa Region. There are no problem projects in Rwanda. 16. The Bank Group lending has been based on a country strategy which has emphasized: (i) agriculture and rural development, the main objective being to increase food production as well as export crops, while maintaining soil fertility; (ii) human resources development, focusing on support to basic education and skills training to improve agricultural productivity, provide skilled manpower, and influence attitudes on the population issue, and, more recently, on family planning programs per se; (iii) infrastructure development, particularly roads, to reduce the country's isolation and to provide incentives to further intensification of agriculture as well as increased specialization and diversification through better marketing; (iv) energy, to lessen the country's demand for fuel imports; and (v) development of small and medium-size enterprises in manufacturing and other sectors. 17. One of the major constraints to Rwanda's development is the shortage of technical/managerial capacity. This affects all sectors and inhibits project preparation and implementation. Intensive technical assistance and on-the-job training of Rwandese staff have, therefore, been a salient feature of the Bank Group program for Rwanda, both under individual projects in various sectors, and through a free-standing technical assistance project (Credit 1217-RW which became effective in November 1982). This project has helped strengthen inter-ministerial coordination, provided training to staff in the studies units of concerned agencies, and contributed to improve the preparation of the next five-year plan. 18. The Bank Group program has been pursued in a climate of good relations with the Government. In all sectors in which we are active, there exist a general receptivity to our advice and willingness to take action where required. In agriculture, improved sector management as well as more rigorous project planning and financial controls have been attained, with a shift away from integrated rural development schemes towards more directly productive projects. In the highway sector, our active dialogue with the Ministry of Public Works and Energy is now focusing on the ways to reduce reliance upon expatriate expertise. In industrial development, we have gained Government's commitment to promote small-scale enterprises. In the education sector, we had difficulties due to two misprocurements (some six years ago) and an overly ambitious education reform proposal at the primary level. However, a positive dialogue with the Ministry of Primary and Secondary Education (MINIPRISEC) has emerged in the past three years; the Ministry has since adopted a less costly and lengthy primary cycle. On population, our initially cautious approach to Government has developed into cooperative efforts to promote suitable family health and planning programs.  - 6 - 19. The Bank Group strategy continues to center on the five sectors mentioned above (para. 16), with special emphasis on agriculture and population. For the former, we give priority to: (i) promote intensification by developing and strengthening Rwanda's agricultural research and extension capabilities; and (ii) reinforce the key sector institutions - the Rwandese Research Institute and the Ministry of Agriculture. In the population sector, our program involves close collaboration with the National Population Office (the agency responsible for designing and promoting educational programs and service delivery systems for family planning), support to maternal/child health initiatives through the Ministry of Health, recently reorganized, and to participate more effectively in other efforts to deal with Rwanda's bourgeoning population problem. 20. Since 1970, the Bank Group has been active in Rwanda's transport sector, in an effort to improve the country's main road links with the neighboring countries, and between its capital and major provincial centers. The Bank Group has also made increasing efforts -o improve maintainance of the road network, better programming and efficient execution of transport investments and recurrent expenditures, and institution-building, including training of Rwandese staff (paras. 44-46). 21. Our dialogue with the Government has also had a macroeconomic dimension. Rwandese authorities have recently indicated readiness to proceed with the preparation of an economic recovery program ('Programme de Relance"), and asked the Bank's assistance in its formulation. A Bank economic mission recently visited Rwanda in response to this request. The mission's work, which extended in particular over agriculture and mining sectors and public enterprises, will help further strengthen the cooperation between Rwanda and the Bank at the macroeconomic level. PART III. THE TRANSPORT SECTOR Introduction 22. Population and economic activity in Rwanda are distributed fairly evenly over the country. However, owing to the scattered nature of agricultural production and the limited quantities being marketed by smallholders,transport flows are modest and consist mainly of export crops, imported consumer goods and construction materials. The main transport flows are between Kigali, the capital, and the exterior (the neighboring cou.,.ries), and between Kigali and the regions. In view of the seasonal nature of agricultural exports, these flows tend to be unbalanced. The transport infrastructure consists of a network of about 10,000 km of roads and tracks, Lake Kivu on the western border, an international airport at Kigali and five smaller airports. There are no railways or navigable rivers. Because of the hilly terrain and difficult soil conditions, transport infrastructure is very costly to build and to maintain. These disadvantages are compounded by high external transport costs owing to the long distances involved and the difficult conditions of transit haulage through neighboring countries. Yet, the availability of adequate and less costly transport facilities is of key importance for agricultural production and the development of other sectors of the economy of Rwanda.  7- Sector Development Objectives and Sector Organization 23. Rwanda Government's last three development plans have assigned a key role to transport, with investments and policies aimed in particular at: (a) improving international transport connections; (b) upgrading and improving maintenance of the main road network to facilitate the country's economic development and its social and administrative integration; and (c) improving services and lowering transport costs in the rural areas. Significant progress has been made in each area. For the future, while these broad objectives remain appropriate, more attention will need to be given to translating them into well-balanced Investment and maintenance programs, and to effective implementation. The proposed project will assist in these areas. 24. Two ministries directly involved in transport are: (a) the Ministry of Public Works (MPW) for road construction and maintenance; and, (b) the Ministry of Transport and Communications (MTC) for the development of other modes and for the utilization of the transport infrastructure in general. In addition, the Ministry of Planning and the Ministry of Finance and Economic Affairs are indirectly concerned with transport: the first for determining sectoral priorities and coordinating all public investments, and the second through taxation of inputs used in transport and for approving transport tariffs. Finally, the Central Bank influences the transport sector through its allocation of foreiga exchange. Transport Planning and Transport Sector Expenditures 25. The main emphasis of Government's expenditure programs in transport has been on the development of basic road infrastructure. Successive Five-Year Plans have allocated a substantial share of total planned investments to transport and, in particular, to improvement of roads providing access to international transit routes and main inter- regional roads. In the current Plan (1982-1986), transport accounts for 17X of planned investments, with new road construction taking more than 75% of that share. Since external financing is more readily available in transport than in other sectors, plan implementation also tends to move faster than in some other sectors. 26. There is room for improvement of transport planning in Rwanda. In the past, the focus has been on planning project by project, and roads that were built under this selction procedure bave bad acceptable rates of return. However, comprehensive programs covering both maintenance and construction were not prepared. In view of the substantial funds involved in building and preserving an adequate transport network, and the needed shift in emphasis from infrastructure development to its efficient maintenance and utilization, the priority in transport planning has to be directed to the formulation and annual updating of balanced public expenditure programs. This approach was initiated during the preparation of the proposed project (para. 27).  - 8 - 27. As part of its long term aim of paving all interregional roads, Government attaches importance to the paving of four roads totalling 305 km in length. While these investments have acceptable rates of return, their scheduling for implementation has to take into account overall priorities (para. 26). Towards this end, the Government has now prepared a draft overall expenditure program (1986-1989) for the road sector, which presents together road maintenance and a scaled-down road construction program. The 1686-89 program gives due weight to economic criteria (primarily the economic rate of return) and is financially feasible in terms of budgetary resources likely to be available to the Government. However, given the heavy involvement of other donors in the sector, there is need for periodically reviewing it in the light of external assistance available to the sector, to ensure that priority maintenance and improvement works will receive funding. On that basis, agreement has already been reached with the Government on its expenditure program for 1986. In future, every year in conjunction with the preparation of the annual budget, the Government will update its schedule of road improvement works and its four- year forward expenditure program for the road sector on the basis of the same financial and economic feasibillty criteria. It will afford IDA an opportunity to comment on the updated program and finalize it, taking into account IDA's comments. These updated programs will also serve as a basis for future round table discussions or informal meetings with other donors in the sector to achieve better donor coordination. 28. As part of the Fifth Highway Project (Credit 1250-RW), UDP provided financing for an expert to assist in carrying out priority transport planning tasks and establishing a planning capability for the transport sector. This position was only filled in 1984, owing to recruitment delays. With the preparation of the Sixth Highway Project, a start was made with the formulation of priorities for the highway sector as a whole and the preparation of a comprehensive program covering road construction, road improvement/rehabilitation and road maintenance tasks (para. 27). The need is now for establishing transport planning on a firm basis by giving it its proper role in the annual review and updating of multi-year programs and for better coordination of the activities carried out by the various Ministries involved in transport. The Government will make, by June 30 1986, organizational arrangements satisfactory to IDA, to strengthen the transport planning function and the coordination of the planning and policy formulation activities of the various Kinistrie., involved in transport. International Transport 29. Rwanda's international transport links are made precarious by not only its long distances to the ocean (over 1,700 km), which substantially increase the cost of imports and exports, but also by the poor condition of the infrastructures, the lengthy transit procedures in neighbouring countries, low operating efficiency of transport companies active in the area, and relatively small and imbalanced export and import flows (exports: about 40,000 tons, imports 280,000tons). Rwanda also incurs indirect costs on account of factors such as high loss and damage rates of goods and interruptions in transport flow.  -9- 30. Two main transport corridors to the Indian Ocean ports have traditionally been used: the Northern Corridor (1,740 km) which comprises the all-road and road/rail routes via Kampala and Nairobi to Nombasa, and the Central Corridor (1,720 km) which consists of the road/lake/rail connection via Bujumbura and Kigoma to Dar-es-Salaam. Because of recurrent problems of delays in transit on the Central Corridor, its role in Rwanda's external trade shrunk to less than 5% in 1984. International transport by air achieved significance in the late 1970's when, owing to the difficulties with surface transport, a start was made with cargo flights; but air cargo has declined since then. 31. The acute bottlenecks in the two corridors in the late seventies - mainly due to unsettled conditions in Uganda and to a surge in Zambian traffic sent via Dar-es-Salaam which compounded recurrent problems in operating efficiency of the transport agencies - led to the most serious interruption in transport ever experienced in the region. Concerted efforts were launched by both the landlocked and transit countries and other interested parties to alleviate the problem. While the various initiatives undertaken fell short of their expected results, good progress has been made in a number of areas, and international consultations and cooperation have become more structured. The Northern Corridor countries entered into a Transit Transport Agreement which should soon become operative and should help reduce total time in transit significantly through simplification of customs procedures. Selective investments for rehabilitation and modernization of infrastructures and facilities have been made. As a result of the measures taken and with the disappearance of certain causes of the bottlenecks, transport costs decreased (or increased only moderately). However, there remains considerable scope for further improvement, particularly in the areas of operations and transit procedures. The proposed project provides financing for an international transport expert to strengthen the Rwanda Government's capacity for analysis and policy formulation in the international transport area. Roads and Road Transport 32. The Network. Rwanda has a classified road network totaling about 4,060 km of which 627 km are paved and 274 km are being improved to paved standards. The remaining 3,160 km are mostly unengineered earth roads. The coverage of the network is nearly adequate. However, the mountainous terrain, heavy rainfalls and poor soil conditions result in high maintenance costs of gravel and earth roads. Rwanda has thus concentrated its efforts on improving to paved standards the major road links between Kigali and neighboring countries and Rwanda's major regional centers. With the paving work to be completed by 1987, the network is reaching a stage where it is no longer a major impediment to the country's economic and social development. The Government has also increased its attention to improving the maintenance of the road network through strengthening of its road maintenance operations. This effort has resulted in a paved road network in good condition and an earth road network in fair condition, passable year round, although rutting and potholes are still common after each rainy season. In addition to the classified network, there are some 6,000 km of communal roads and tracks which receive sporadic maintenance  - 10 - from the communes (of which there are 143) and occasional improvement works by the RB with equipment-intensive work methods. Because of poor maintenance on many communal roads, accessibility is less than adequate for certain areas they serve. 33. Road Use. Rwanda's vehicle fleet, estimated at 16,000 units in 1983 - of which 40Z were passenger cars - remains small when compared to the road network or the population. It is estimated that about 25% of the network (including mainly paved roads) carries 85Z of total traffic. The main roads radiating from Kigali have traffic levels on the order of 500 vehicles per day (vpd) or more. Average annual traffic growth from 1970 to 1983 is estimated at 11X, a figure corroborated by the annual growth rate of imports of petroleum products (10.4Z). 34. Road Transport lndustry. Government incentives have contributed to a rapid development of Rwanda's transport industry. These incentives included liberal allocation of foreign exchange for importation of commercial vehicles, lower taxation and practically free entry into the transport industry. Transport routes are not regulated. The industry is largely composed of traders/truckers who engage mainly in commercial activities, including transport for their own account and as public carriers. There are only a few large organizations operating more than 10 vehicles. Tariffs are set by Government, but their role is more that of a reference tariff since they are not enforced. Passenger transport is subject to a licence from the MTC. Passenger transport by private minibus has grown rapidly in recent years and is capable to satisfy most of the demand. Since the demand for transport is mostly scattered in small quantities over the country and is highly seasonal, for the time being at least, continued use of traders/truckers (who normally have substantial spare capacity) is probably the most flexible and cost-effective arrangement for handling the country's transport needs. However, greater attention has to be given to traffic safety, in particular of passengers. Steps are now being taken in this area (para. 48,g). For international transport, owing to the cumbersome administrative and customs procedures governing transit traffic, both importers and exporters have traditionally relied on clearing and forwarding agents to handle transit formalities and transport. Most agents themselves do not engage in transport, but contract out these activities to truckers or pools of truckers. On the northern route, the trucking industry is dominated by carriers from Kenya. There is also a growing number of Rwandese operators active in international transport field. The principal Rwandese international carrier is STIR in which Government has a majority shareholding. The Government is also involved in ONATRACON, a public passenger transport agency. Both STIR and ONATRACOM have had financial difficulties in recent years. As a part of planning in the road sector (para. 31), the Government will have to reassess the future role of these ventures. 35. Road User Charges. Road users contribute to Government revenues through various import duties and taxes. In recent years, total revenues from road users exceeded total road maintenance expenditures by about 50%. However, the coverage ratio of road wear and tear costs by road user charges varies greatly between different categories of road vehicles. The transport planning unit will carry out a review of road user charges and costs by vehicle category and prepare proposals for adjusting taxation of  - 11 - road users as required to ensure that each category of vehicles covers at least the wear and tear cost it imposes on the road network. Taxes on fuel products (about 20Z) remain low by international standards, mainly because of Government's objective not to increase the prices of inputs used in transport given that the CIF Rwanda border price of fuel products is already very high on account of high international transport costs. In regard to fuel prices in general, there is no sudsidization or cross-subsidization of fuel products and price differentiation between gasoline and diesel fuel is not significant. * 36. Traffic Regulations and Road Safety. Current vehicle weight and dimension regulations are outdated and overloaded trucks have become a problem. The Government bas prepared a new traffic Act, also covering revised vehicle weight and dimension regulations which are in line with the design specifications of roads built in recent years as well as the regulations in force in neighboring countries. The legislation is e3pected for enactment by December 1985. As a condition of effectiveness of the proposed credit, introduction of the new traffic regulations will be required. The laws governing road safety also need to be brought up-to-date, and Government has already started tackling the key aspects of this problem (para. 48,g) Lalv. and Air Transport 37. Lake Transport. Lake Kivu allows commercial navigation. The main transport flows consist of beer from Gysenyi to Cyangugu and Kibuye, with coffee being carried seasonally on the return journey. Total volume of goods traffic was estimated at some 30,000 tons in 1983. Since the lake transport is the most economical metbod of transportation between communities along the lake, there is scope for its expansion as and when trade in agricultural and consumer goods increases. 38. Air Transport. Rwanda has a modern airport near Kigali which was upgraded in 1981 to handle widebodied aircraft. Domestic scheduled flights are offered by Air Rwanda which operates three small aircraft, while chartered flights are available from a few private companies. Highwy Administration 39. Organizational Structure, Staffing, and Training. MPW through its Roads Branch (RB) has responsibility for the design, construction and maintenance of a network of 4,060 km of roads (para. 24). RB is divided into two departments: the Engineering and Control Department (ECD) which is in charge of new construction by contractor, and the Works Department (VD) which is in charge of road/bridge maintenance and construction by force account and of the mechanical workshops. The present organizational structure, which was revised in early 1984, is adequate. Staffing, however, in particular of higher level positioas, still poses problems. To make up for the shortage of qualified Rwandese higher level staff, RB is assisted by nineteea expatriates (down from twenty four in 1981), financed by bilateral and multilateral sources. They operate as advisors, training  - 12 - instructors or as part of project teams. Because of the lack of local counterparts, coordination of their activities has proven difficult and the training impact inadequate. For middle and lower level staff, the shortages at the RB are less severe and certain functional categories are even overstaffed. Yet, qualifications are uneven as the education system does not produce enough skilled workers and technicians, and Government often hires employees without any vocational training. While the nationwide shortage of engineers and technicians remains the principal cause for the lack of qualified staff, two other factors have also contributed to this situation: low salaries in Government service, and a lack of serious manpower planning in the past. 40. The first extensive training program for RB was started in 1978 with financing from FRG, UNDP and IDA. It provided for the establishment of a training center, offering training in basic skills and refresher training. Over the period 1979-1982, 124 staff members were trained and 301 staff members received refresher courses. The training is generally of good quality; staff losses after training have not been serious. During the 1986-89 period, a training program will be implemented covering all staff levels and aimed at improving qualifications in critical areas (para. 48,e). In the meantime, to help the RB cope with its expanding responsibilities, a start will be made with periodic maintenance by contract so as not to stretch RB's still limited capabilities (para. 48,b). 41. Financing. Routine and periodic maintenance are financed through the recurrent budget. New road and bridge construction and some periodic maintenance of paved roads is financed under the investment budget. Total annual expenditures for highway maintenance averaged RwF 650 million in recent years (or about US$1,700/km) which is adequate. Of these, about 55Z was funded through Government's recurrent budget and the remainder by multilateral and bilateral donors. Government's own allocations to highway maintenance have been steadily increasing in recent years from RwF 178.2 million in 1978 to RwF 448.0 million in 1984, or about 5Z per annum in real terms. In order to cope with the growing maintenance needs, Government is considering, inter alia, the creation of a road fund to which additional taxation on road users would be channeled. Government will prepare, by June 30, 1986, proposals (for review with IDA) for gradually financing from its own resources a larger share of recurrent road maintenance. Total annual expenditures for highway construction have exceeded RwF 3 billion in recent years. About three quarters were externally funded. These expenditures, including those by the Government under the development budget, have tended to fluctuate widely over the years as a result of the overlapping of major const-uction works. This underlines the need for careful scheduling of individual projects (para. 27). 42. Road Maintenance and Equipment Management. RB's Works Department (WD) is responsible for maintenance of 4,060 km of roads, while the communes are mainly responsible for the maintenance of 6,000 km of unclassified roads and tracks (para. 32). Road maintenance has improved over -he past years due to the strengthening of road maintenance operations, increased budgetary allocations and the assistance provided by IDA and other foreign donors, principally FRG. An adequate administrative structure has been set up and procedures for maintaining the country's major network and improving the skills of local staff are in place.  - 13 - Routine maintenance operations are performed by 200 labor-intensive road gangs (cantonniers"), composed of a foreman and 12 roadmen, each with responsibility for about 15 km of roads. Equipment maintenance and repair is the responsibility of WD's Workshop and Warehouse Section (W). WW operates a central mechanical workshop and a spare parts store In Kigali and two regional workshops in Ruhengeri, and Kibuye. These operations are managed by technical assistance provided under IDA and FRG projects and staffed by local mechanics and helpers. Equipment maintenance will continue to depend on the assistance of the expatriate mechanics. The proposed project would provide the necessary technical assistance, equipment, materials and supplies for continued improvement of WW operations and will put emphasis on the training of necessary local personnel (para. 48,e,f) 43. Engineering and Construction. RB's Engineering and Control Department (ECD) is responsible for engineering and supervising construction works. Due to limited number of experienced staff, ECD is supported by technical assistance staff from FRG. Engineering studies and supervision of major projects are entrusted to foreign consultants and, occasionally, to the National Study Bureau (BUEP) which is galriig expertise in this field. ECD also operates the Governement Soils Laboratory which carries out Boil tests for design work. As part of the 1986-89 program, the laboratory's capacity will be expanded to cover certain study and supervision tasks of road maintenance operations and research in the utilization of local materials for road construction and maintenance (para. 48,d). Construction projects are executed by contractors, following suitable pre-qualification and tendering procedures. Contracts are generally let on a unit-price basis, following international competitive bidding. Rwanda has no domestic road construction firms due to lack of skilled and experienced personnel, lack of financial resources and a small market for construction works. A few domestic firms work in smalU building construction projects and as minor subcontractors to foreign firms. 44. Experience with Past IDA Lending in the Sector. IDA lending for the Rwanda road subsector has amounted to US71.4 million for five projects. The objectives of these projects have been to assist this landlocked country in: (i) improving major international road connections with its neighbors and between its regional centers and the capital, and (ii) improving its institutional capabilities to carry out efficient road maintenance operations. 45. Under the First Highway Project (Credit 196-RW, USS18.8 million; 1970), the Third Highway Project (Credit 475-RW, US$6.3 million; 1974) and the Fifth Highway Project (Credit 1250-RW, USS25.9 million; 1982), IDA primarily financed road construction. These projects contributed, respectively, to improvement to paved standards of the Kigali-Gatuna road (80 ki), the Ruhengeri-Gisenyi road (60 km), and the Butare-Kitabi road (53.5 km). Excessive delays and cost overruns occured on the Kigali-Gatuna and Ruhengeri-Gisenyi roads, due to inadequate engineering and construction techniques, and interruption in the supply of equipment and materials through Uganda at a time of instability in that country. The project performance audit reports (PPARs), however, concluded that the improvements  - 14 - of both roads were still justified as the increases in construction costs were offset by higher than anticipated traffic growth and greater savings in vehicle operating costs. The Kigali-Gatuna road has since deteriorated to the point where reconstruction is necessary. While some maintenance works to keep it passable are being carried out under the Fifth Highway Project, provision would be made for reconstruction works under the proposed Sixth Highway Project (para. 48,c). In view of the difficulties encountered in the first two road construction projects, the improvement of the Butare-Kitabi road (Fifth Highway Project) was designed with due attention to soils problems, alignment and drainage; contractors were prequalified carefully and the supervision team was provided with an expert in soils engineering. Construction of this road has been progressing satisfactorily and is well advanced. The revised cost estimates for it allow reallocation of US$5.0 million to the construction of the Kigali-Gatuna road under the proposed Project. 46. IDA's Second Highway Project (Credit 299-Rw, US$5.4 million; 1971) and the Fourth Highway Project (Credit 769-RW, US$15.0 million; 1977) contributed to improvement of road maintenance operations and institution building. These projects provided equipment, materials, supplies, rehabilitation of workshops, technical assistance and training of personnel. Both projects were designed to carry out periodic and routine road maintenance operations on the network of paved and earth roads. At the closing of the Second Highway Credit, on December 31, 1978, only about 5OZ of targeted works were completed sucessfully. The PPAR concluded that the targets set at appraisal were overly optimistic. For this reason, the Fourth Highway Project was designed with due weight and attention to the limitations of the RB. At the credit closing in June 1984, 90Z of tL' works programed were successfully completed. Both the Second and Fourth projects succeeded in setting up a basic road maintenance administration. Moreover, the organization of labor-intensive teams of cantonnage' has assumed a key role in keeping the network passable all year round. However, the training of personnel has not yet had in full the expected impact due to a shortage of qualified candidates and some losses of trained staff to the private sector. The result is that technical assistance is still needed in the medium term to carry out effective road maintenance operations. The proposed project will put emphasis on the training of personnel (para. 48,e). PART IV. THE PROJECT A. Objectives 47. IDA's objectives in Rwanda's highway sector are fully supportive of the Government's own objectives and priorities, namely: (i) to improve public expenditure planning in the sector by assisting Government to develop appropriate road maintenance and construction programs; (ii) to strengthen donor coordination in the sector to channel external aid towards high priority needs; (iii) to improve road maintenance and construction planning; (iv) to strengthen RB operationally; and (v) to improve road maintenance operations and thereby reduce road transport system costs. Tc  - 15 - achieve these objectives, IDA would help finance a part of Rwanda's 1986-89 road maintenance and reconstruction program (leaving out certain parts which are exclusively supported by other donors as part of their ongoing assistance to the sector), together with a comprehensive training program for the highway administration. B. The Road Maintenance and Reconstruction Program, 1986-1989 48. The content. The program which was prepared by RB and finalized during IDA project appraisal visit is technically and financially feasible and economically justified; it covers the essential needs on the 4,060 km network during the four-year period (1986-89) and comprises the following components: (a) Maintenance Works by Force Account including: (i) labor- intensive routine maintenance on a network of 3,160 km of earth/gravel roads by 200 labor-intensive gangs (the operation would be assisted, inter alia, through the replacement of hand tools, haulage of materials, and training of supervisors); (ii) patching and resealing operations on the paved road network (630 km, growing to 900 km) by two brigades, each capable of covering about 400 km of paved roads a year, and repair works and selective resurfacing of paved roads by a third brigade; (iii) regravelling and selective improvement of the road and drainage structures on 500 km of earth/gravel roads carried out by two brigades each covering 60 km of road every year; these brigades to be responsible, also, for grading some 1,000 km of road each year; and (iv) maintenance, by five maintenance teams, of the bridges which are the responsibility of RB. Previous projects by IDA, the FRG and Japan have financed equipment and tools to assist RB in its maintenance operations. Part of this equipment and these tools will soon complete their useful life and will bave to be replaced during the program period. As in the past, the World Food Program (WFP) will support the program by deliveries of food rations to the maintenance crews. (b) Maintenance/Rehabilitation Works by Contract. With the double objective of allowing RB to cope with the expanding maintenance needs without undue strain on its capacity, and of making a start with private sector involvement in maintenance operations, some works would be carried out by contract. The Cyangugu-Bugarama road (40 km), built to paved standard more than 20 years ago, requires resurfacing and some spot repairs; in addition, selective improvement and regravelling works would be carried out on some 218 km of earth/gravel roads; (c) Reconstruction of Kigali-Gatuna Road. The Kigali-Gatuna road (80 km), constructed under the First Highway Project, bas failed prenaturely due to a combination of adverse factors (para. 45). The road carries substantial local traffic and serves Rwanda's international road link through the "Northern corridor". The 1986-89 program provides for reconstructing the drainage system, the base course and shoulders with 10-20 cm of crushed rock, and a triple surface treatment or a 5 cm asphalt concrete wearing course. This road crosses difficult terrain and marshy areas. The original floating embankment on tbe marsh at kx 68 now has serious problems of subsidence. Two alternative solutions are being investigated to reconstruct and stabilize the crossing. The necessary  - 16 - realignment and soils studies are due for completion by the end of 1986. FED plans to finance works to be carried out for improvement of the crossings. (d) Strenghtening of Soils Laboratory. During the program period, RB's soils laboratory, under the Engineering and Control Department, will expand its activities to include monitoring the quality of road maintenance, and investigations to identify and utilize local materials for road construction and maintenance. To cope with these tasks, the laboratory will be strengthened through provision of necessary equipment, materials, supplies and technical assistance. (e) Manpower Development. The training program for 1986-1989, covering all levels of staff, has been designed to make available qualified personnel in adequate numbers for the execution of RB's force account work program. The target is for training approximately 95 mechanics and assistant mechanics, 13 engine operators and 70 vehicle drivers, 10 worksite managers and 15 supervisors, 50 secretaries, accountants and storemen, 60 apprentice mechanics, 13 higher level technical, administrative and financial staff and 2 vocational training managers. In preparing the training program, the following aspects have been taken into account: (i) cost effectiveness of the training, which will be aimed principally at very small groups of trainees of each speciality; (ii) use of available training facilities at existiag centers; (iii) coordination of human resources from the different technical assistance programs. (In particular, the practical training of mechanics, electricians and workshop chiefs at the Central Workshop in Kigali will be provided, as in the past, by bilateral aid from FRG); and (iv) the training of Rwandese instructors who will progressively take over from the expatriates. In addition to the training program itself, a number of accompanying measures will be taken to firmly establish manpower development within the RB. These measures, which would be conditions of effectiveness of the proposed IDA credit, include the strengthening of RB's Personnel Bureau, and the setting up of a Training Unit and a Training Coordination Committee to provide a functional link between training and personnel management on the one hand and training and the technical services on the other; (f) Consulting Services. In view of the staff constraints in RB, consultants will supervise the reconstruction works on the Kigali-Gatuna road (80 km), assist RB in preparing specifications and bidding documents for the repair and resurfacing of the Cyangugu-Bugarana road (40 km), and the improvement/regravelling of the Rubengera-Ntendezi (131 km) and the "Circuit des Lacs' roads (87 km). Moreover, as RB has limited qualified personnel, it will also be assisted by consultants to: (i) help carry oat the force account maintenance program; (ii) strengthen the soils laboratory; and (iii) implement the training program. The technical assistance for the force account works will comprise a senior engineer, as team leader (4 staff-years); three road maintenance experts (12 staff-years); a cost accountant (4 staff years); and a stores specialist (3 staff-years). The two element,s of the program to be financed by the FRG - selective resurfacing on 130 km of paved roads and bridge maintenance - would include separate arrangements for assistance with implementation. For equipment maintenance, there will be four mechanical experts (4 staff- years each) provided by the FRG; they will be engaged partly on operational  - 17 - duties and partly on training. One expert - to be provided by France - will help strengthen the laboratory. For the training program, an instructor (who would also help coordinate the training program) will he recruited (4 staff-years), to be assisted by training specialists (for a total of 32 staff-months). (g) Complementary Sector Actions. In addition to the road works, the program includes traffic safety measures, a pilot scheme for improved maintenance of communal roads and expert services for transport planning. The traffic safety scheme would cover both driver training and vehicle inspection and would be co-managed by the national insurance company. With a view to launching a more systematic approach to the improvement and maintenance of communal roads, a study will identify typical deficiencies hampering accessibility, quantify the magnitude of necessary improvements and the level of maintenance that should be aimed at, and make recommendations on technical, institutional and financial arrangements for selective improvement and maintenance of communal roads. The study will also define a work program and accompanying implementation arrangements for a pilot scheme in a few communes. Expert services will be required for implementation of the scheme (20 staff-months in total). To help strengthen Government's transport planning capability, expert services will also be secured covering both domestic and international transport issues (for a total of 5 staff-years). 49. Program Cost and Financing. The total cost of the progam, net of taxes and duties but including contingencies, is estimated at US$81.1 million equivalent with a local cost component of about US$18.1 million equivalent (22%) and, a foreign cost component of nearly US$63.0 million (78Z). Taxes are estimated at US$1.4 million. Base costs are in mid-1985 prices; physical contingencies of 10% have been added to the cost of civil works. Price contingencies are based on recent estimates of international inflation rates as follows: 5% in 1985, 7.5% in 1986 and 8% in 1987 to 1989. For local costs, price contingencies are estimated at 19%. The Government's contribution to the program would be US$19.2 million equivalent under the recurrent budget and US$3.1 million under the development budget. In addition to the proposed IDA lending, external financing is being secured from FED, FRG, France, UNDP, Danish Inte;.national Development Agency (DANIDA), Arab Bank for Economic Development of Africa (BADEA), Kuwait Fund and World Food Program (WFP) in support of the program, the details of which are given below: US$ Milionn Source of financing Program activity to be financed 19.2 Government-Recurrent budget All activities, including force account 3.1 Government-development budget Resurfacing; bridges; Kigali- Gatuna Rd. 5.0 IDA-Highways V Kigali-Gatuna Rd. 11.0 IDA-Highways VI Maintenance by force account; soils lab; training; consulting services; studies; 15.0 IDA-Special African Facility Maintenance by force account; Kigali-Gatuna Rd. 7.0 European Development Fund Kigali-Gatuna Rd. (FED)  - 18 - 5.2 Fed. Rep. of Germany Maintenance by force account; (FRG) training; consulting services; 0.4 France Soils lab.; 1.0 UNDP Training; studies; 0.5 Danish International Develop- Traffic safety scheme (tentative) ment Agency (DANIDA) 5.4 Kuwait Fund Maintenance by contractors; 7.6 Arab Bank for Economic Kigali-Gatuna Rd.; Dev. of Africa (BADEA) 2.1 World, Food Program Maintenance by force account; (WFP) 82.5 Total (including contingencies and taxes). 50. Annual Programming and Monitoring. Every year, concurrently with the preparation of the annual budget, RB will prepare a detailed road maintenance work program for the following year. The work program for 1986 has been agreed with IDA. For subsequent years, annual work programs will be furnished to IDA by October 31 of each year for its comment, and will be finalized upon determination of the final budget, taking into consideration IDA comments received. Prior to being finalized, the draft work programs will also serve as the basis for systematic coordination of donor policies and activities in the sector. Progress of implementation of the annual work programs will be reported upon on the basis of the same indicators as used in their preparation. A quarterly progress report showing targets and achievements by major activities and explaining significant deviations will be prepared. An annual implementation report will consolidate this information and provide details on inputs used in the execution of the program, productivity developments and unit costs of the various activities. The Engineering and Control Department will be responsible for monitoring the quantity and quality of the works carried out by the WD and by contractor, and will be assisted in this task by the soils laboratory. C. The Project 51. The content. The proposed project would comprise of the following elements of RB's four-year program: (i) the routine maintainance of earth and paved roads and the regraveling of earth roads as part of RB's maintenance program by force account - estimated to cost US$30.1 million; (ii) part of the training program under cost-sharing arrangement with UNDP: US$1.5 million; 'iii) consulting services for implementation of (i) above, and for transport planning and studies related to maintenance of communal roads: US$3.6 million; (iv) soil laboratory: US$0.9 million; and (v) reconstruction of the first and second sections of the Kigali-Gatuna road: US$23.0 million, including construction sup_rvision. The total cost of the project would thus amount to (US$59.1 million, or US$58.1 million excluding taxes and duties). The foreign cost component would be US$45.1 million (76%); local costs would be US$14.0 million (24Z). Government's contribution to the project would be US$17.2 million, including US$3.7 million in foreign costs. The IDA financing would be US$31.0 million (of which US$5.0 million from the ongoing Fifth Highway Project and US$15  - 19 - million from the Special African Facility). The proposed reconstruction of Section II of the Kigali-Gatuna road (para. 48c,) would be cofinanced with BADEA, while its Section III would be left for financing by FED. 52. Implementation and Procurement. The project would be implemented by RB, except for the strengthening of international transport planning which would be implemented by the MOTC. Like the program, the project would cover a four year slice of RB's maintenance program starting with 1986. It is planned that equipment for road maintenance would be delivered in the second half of 1986. Technical assistance to help implement the program would be provided for four years starting in January 1986. The project as a whole is expected to be completed by December, 1989. 53. The reconstruction of the first and second sections of the Kigali-Gatuna road would be carried out by contractor, to be selected following international competitive bidding (ICB) in accordance with the Bank Group Guidelines for Procurement. Contractors would be prequalified. Equipment, spare parts, materials and supplies for a total amount of US$13.3 million would be grouped into suitable lots and procured through ICB in accordance with the Bank Group Guidelines. Contracts valued at US$16.0 million would be procured under the special eligibility criteria of the Special African Facility. Materials, equipment, tools, spare parts and supplies which cannot be grouped in lots of at least US$75,000 equivalent, with an aggregate limit of US$1 million, may be procured on the basis of the applicable procedures of the borrower (LCB, local and international shopping), which are satisfactory to IDA. Parts for existing proprietary equipment may be procured directly from suppliers. All contracts for civil works and equipment contracts over US$75,000 each would be subject to prior review by IDA. Other contracts would be subject to selective post-award reviews. Consultants for supervision, technical assistance and planning would be employed in accordance with the Guidelines for the use of Consultants by World Bank Borrowers" . Selectiou would be based primarily on the technical evaluation of consultants'" proposals and final selection would be agreed with IDA before entering into a contractual agreement. Procurement arrangements under the proposed project are given in the Annex IV to this report. 54. Disbursement. The proposed IDA credit and the credit under the Special African Facility would be disbursed on the following basis: a) 90X of total expenditures for civil works; b) 100% of foreign expenditures, or 70% of local (ex-factory) cost, for equipment, spare parts, materials and supplies; and 85% of local expenditures for other items procured locally; c) 100Z of total expenditures for consultants' services. Disbursements would be made against full documentation of expenditures except for contracts of less than US$20,000 and for purchases under $20,000 which would be made solely on the basis of statements of expenditure. The Government has to confirm that financing arrangements are in place for reconstruction of Section III of the Kigali- Gatuna road prior to disbursement of IDA funds for this component. In order to expedite disbursement, Government will set up two Special Accounts in US dollars in a commercial bank in Rwanda, with initial deposits of US$0.5 million each, to serve as revolving funds for the project expenditures under IDA and the Special African Facility credits.  - 20 - 55. Accounting, Auditing and Reporting Requirements. The RB would naintain accounts of all expenditures and operations in respect of road maintenance, including accounts reflecting the expenditures made under the investment budget, and separate accounts of the project to be financed by IDA. The project accounts would be audited annually by independent auditors; reports would be provided annually to IDA not later than six months after the end of each fiscal year. Economic Benefits and Risks 56. The main direct benefit to be derived from the physical components of the project would be savings in vehicle operating costs. In addition, improved road maintenance would reduce future road repair and reconstruction costs as well as freight damage, travel time and other economic and social costs. The beneficiaries of the saviugs in vehicle operating costs would, in the first instance, be the traders/truckers and car owners. In view of the competitive conditions in the road transport industry, however, the savings would be passed on to consumers and producers. Since the labour-intensive routine maintenance is undertaken over the network largely in low-income rural areas, the project would also contribute to poverty alleviation in these areas. The rural poor wQuld benefit from the project through higher farmgate prices for their sales, and lower prices for their purchases of farm inputs and consumer goods. The project will provide for improved arrangements for maintainance of the unclassifed road network (communal roads). Over time, benefits would accrue to growing segments of the rural population in Rwanda who depend on these roads for their economic activities. 57. The Project components to be carried out with consultants' assistance and training would lead to improved operations of RB and institution-building in the transport sector. No economic rate of return (ERR) bas been calculated for these items, but in view of their expected impact on operations and policies, they are well justified. The elements of the prcject for which costs and benefits have been quantified represent 94% of the total project costs. The ERRs for these elements would range between 15% and 100%, with an overall ERR of 46.2 percent. Sensitivity tests on critical variables determining the outcome of the ERR calculation indicate that under unfavorable assumptions, the ERR for the project components would still exceed the estimated opportunity cost of capital in Rwanda (8-10% percent). 58. None of the Project components would adversely affect the environment. The works to be undertaken would improve the drainage system and smoothen the existing tortuous alingment, contributing in the meantime to a reduction in traffic noise, accidents and pollution in the areas being served. 59. The main risks facing the project are that implementation schedules and costs may be adversely affected by shortages of imported fuel, parts and materials caused by the tight foreign exchange situation of  - 21 - Rwanda and/or transport difficulties in neighboring countries. To minimize the risk of implementation delays and cost increases, the project would help finance about 60Z of the fuel and parts needed for the maintenance program and would provide for two revolving funds. Moreover, provision would be made for a larger than usual stock of materials and fuel in the contract documents for the reconstruction of the Kigali-Gatuna road. PART VI - RECOMMENDATION 60. I am satisfied that the proposed IDA and Special African Facility credits would comply with the Articles of Agreement of the Association and the Executive Directors' Resolution no. 85/1 establishing the Special African Facility, respectively, w-d I recommend that the Executive Directors approve the proposed Credits. A.W. Clausen President Attacbments Washington, D.C. November 8, 1985  - 22 - Annex I TArLs U Page 1 of 6 RIIAISA - SOCAl. inicATS A s RHAJDA eMgEc a cR WS IGND AVERACES) I. - Is? oo(NUiTr RT ESrTIATE) 1/ 196db luniT LtW UCOM AFLICA mm=T.11m- igsJo a,!! mk iw!Trs !b sou or sAHAA AFRICA S. oF SAMAa ABUA C163m IQ. no TOTAL 26.3 26.3 2b.3 DARQILTURAL 15.0 15.2 1418 GM MR C A ) .. .. 270.0 23S.3 1063.5 mi_ um o on cazrr (KILOGRMS Of O.L .auALT w 10.0 11.0 16.0 62.3 561.5 iaroLm Am hL STAElTCS FOlPULATSO 1.l-IAR (THOUSAiDS) 2753.0 3695.0 5674.0 Uan POVULATIOU CZ OW TUor 2.4 3.2 *a 20.1 37.0 POPULATION IEDJSCTZUI roSUUION IN 1TZA 20O0 (WELL) 10.2 STATIWART FOFLATIO (HLL 40.0 FOEULATION ISNIUNK 2.0 POEULATIWN uuSr MM SQ. M. 104.5 140.3 215.4 33.2 65.1 ME Sq. m. AGUR. Lu 164.1 202.9 370.9 112 124.6 FOEUTLATU LOS STEUCTUS CI) 0-1 us 4.2 4*.6 46.6 46.0 43. 15-" US 53.0 51.5 50.5 50.6 51.5 65 AND ADM 2.6 2.7 2.8 2.9 2.7 WOVULAZIW GOWuR RATE CZ) TOTAL 2.6 2.9 3.3 2.8 2.9 1033 5.3 5.8 6.3 64 S.1 aim RATE ("E TOS) 511 31.6 51.9 47.2 47.0 CRtUS DRATR RATS Cm TRI5) 19.2 17.6 19.4 17.5 15.0 GEM IwRmI am 3.5 3.6 4.1 3.3 3.2 PAKXLT WINC ACCEPTOR. ARL( S) .... USERS CZ OF H ID 1NO .. .. 1A 3.3 6.4 uMOE o0r M PSOID. PU CAM 1l969-71-100) 61.0 102.0 107.0 62.3 62.9 rot Cann Sam or CALORIEs (Z 0 guEURIsI) 61.0 *5.0 U6.0 87.7 98.5 ro0m"" (CRAM DPo) 49.0 54.0 50.0 51.9 55.4 OF WICl ANDMAL AND IPM 26.0 33.0 29.0 Ic 1s.? 16.5 CHILD (ACES 1-4) OEA RAIL 37.5 32.5 26.0 23.1 16.6 LIES EBRC. Ar 5132 ClAs) 46.2 4*6.0 4.5 47.8 52.0 1WAIr5 MiT. MRA (U 1W0s) 166.5 149.5 125.0 119.5 106.6 A:5S TO SAI A=t (1101) TOTAL .. .. 54.o M 27.1 42.4 U .. .. 4.0 7 63.5 67.5 RURal. . . S5.077 19_3 35.6 ACCE5S TO MRRTA DISPOSAL t7. OF IIIXTM TOTAL .. 53.0 S1A 14 26_5 25_9 U .. U3.0 60.0 7 65.4 37.7 USIA?. _. 52.0 50.0 77 20A 20D7 PCWL ATICI Pn PsI1r1 1290S0.0 I* 3900.0 31340. OJ 279017 11791.7 P0. FIR NIRSiSE 1USd 11270.0 7- 620.0 9790.071 3306.4 2459.8 OFO P. in PrnIAL MORED3. TOTAL .. 790.0 650.0 id 1273.6 9U1.1 gUam _ 50.0 50.077 *42.2 368.I RAL .. 310o0 1600.07 3292.5 4371.9 AWSSIONS In MO5ITOAL M . 21.2 .. .. 27.2 TOML .. .. RAL .. .. . .. AVuRR= me. 01 iUr5zn 3OOH TOTAL .. .. URBA . . TOTAL .. uua~ .. .. . .. RDURL .. .. . .. .~ ~~gs  -23 - Annex I A AL IA Page 2 of 6 - SOCCL IXTICAS OATA 3 EUAA E UN SNC3 rA )110=D 9S - 1 1L9 IL-' sSV 'oruSm" Mr S. OF SU sno~to~ m rC wI s 1363S OTL 69.0 74.0 70.0 67.0 35.7 PILZ ".0 03.0 72.0 77.6 100.0 FENAVE 30.0 65.0 67.0 S6.9 03.2 sIDaET: TOTAL 2.0 20 2.0 13.5 17.3 HALS 2.0 3.0 3.0 17.9 2-.0 SIDA 1.0 1.0 2.0 9.t X4.0 VoCITzSI C 0C or s553103) 39.9 12.2 26. 13.2 5.9 IUPZL-UIRAK RaTw pEaffw 39A0 G0.0 556 44.9 41.1 14.0 13.0 14.0 27F 25.5 a-n PASSNu CroSflUNU MP o.a 0.9 .. a2O. Low OF I cruous_m FM 6.1 .s a 55sa 107.1 UUEYUhOSU POP. .. .. 2.4 20.0 man c-o c* U ?ZW) aaaUXLM Pn 20 ?OPULATICI .. . 0.1 5.0 - .4 CM_ AAL T - . 0.1 0.5 0.4 TOTML LABR rm (INDUS) 156.0 207.0 2915.0 PmROW SCIR 49.1 "A 43A 34.2. 36.2 'm CPnc37 9t.0 93.0 91.0n L 77.5 3.s5 Im101 IC InA 1.0 2.0 20 9.7 1.3 TOTL 56.6 . 36 51.4 393 36.0 NMLK S. 36.9 56.5 50.9 47.1 rzwjx ~~~~36.4 31.9 494 23.1 V27 -aoNIc DUSSMCK RAMO 0. 0.9 O. 1J 1J - -1 Pm mr u mum OFas moa 31 or 01 MUSUO .. .. . .. 3ICIS? 202 or F_*-01. .. .... Ler 202 Or MUII .. .. . .. LOEWS 62. OF .0.0 ZOW &Or C jsma Lem CUS O P CApIT) 1 ., .. 16.0 165.5 590.7 RAL .. .. .. 95.0 273.3 - ,.ATs om LVEL CUS$ PM3 CAP=TA) DRUM. .. .. .. 113.1 45A. A .. .. 43.0,^ 67.6 201.1 SSTI oW. mW *Auwu 1055?! INCOME LonE CZ) 0 .. .. 30.0j, 3..6 WEAl... .. .. 41.8. 30 ALVAILAZ I0r APPzWAE CkTb group averemse for ea*h tInteutef am ---ai.mUhe att. si m. boe.m5e of C!S.inl ammg tbs lIlcesams dspade an aweaslabiy of dam m inL MtS mlme.. Unles. oRbeAmie mmmd. Ome ls 19r40" sales to in yeaw bet.a.los5 and 1961t "leA. for 197V humt. Ak 969 and 1971; and data hr 'Mmc bteau E.inSe" betume 1061 mi 1983. A.1977;A .f. 9S0, /. 1943. .1 16  -24 - Annex r Page 3s of 6 DEFINTrlOF1S OF SOCIAL DNDICATORS Notuc Althouh the data are drwn wrromusem pncially judgd thc most authoritativc and r1iab it should also be nted that they may mbeinnerastionally ceparabl becam of the lck of standrid dellttioion and conept ued by dilferent countries in collcting the dat The dan are. nocibdL ureful to dcribe erdes of agtud. indicat ra and chactie crtain mjr dileren betwen countries The re&reac group are (I) th me country group of the subject country and (21 a conitry group with somewhat higher averac income than the country sroup or de bjectcountry (except fer HiSh Income Oil Exporter group wbhe -Middle Income North Afrim and Middle Eat is chosen becaus ofs r soediewclturall a5huitics). In the mresence group data the ivterages ar populati weighted Adthnetic meaws for each indicster sad shown only when majordty orthecounie in a group hasdata for [hut indicator. Since the coveroe orountries amass the indicters depends on the availability ordas and is not uniform. caution mus becercisdin el ting averag one indic torto another. Ths averaes afe only utrul in compadng the walueoronc indiatara a timnemong the ountry and rfemnc groups. AREA (thousand sq.km.) Cr ith Rate (per thsmnd)-Number of livc births in the year Thtal-Totad surfacEc area comprising land are and inland waters; per thousand of mid-year population; 1960. 1970. and 1983 data. 1960, 1970 and 1983 da'a. Crde Death Rot (er pt rhead)-Number of deaths in the year A5rikurwl-E.stimate of agricultural area used temporarily or per thousand of mid-year populaion; 1960. 1970, and 1983 data. pemanendy for crops. pstures. market and kitchen gardens or to Gross Rep rddo Rate-Average number of daughters a Woma lie faUow. 1960.1970 and 1982 data. will bear in her nonnal rcproducive period if she experienes present age-specific fertility rates; usually five-year averages ending GNP PER CAPITA (USS)-NP per capita estimates at curremt in 1960. 1970. and 1983. manke pres. clculated by same conversion method as World Fomiy PAlannhs-Accepters, Anal th.mbunds)-Annual nun- Bank Atl (I98183 basis)k 1983 data. ber ofacccptors ofbirth-control dvicm under auspiccs ofnational ENERGY CONSUMPTION PER CAPITA-Annual appar.mt family planning program. consumption of commercial primary energy (coal and lignite. Fordly Pltri-Usmr (pfteaw of mriTed mnenx)-Tie percen- petroleum. natural gas and bydro-. nuckar and geothernal elec- tage or marned women or child-bearing age who ar practicing or tuicity) in kilograms of oil equivalent per capita: 190, 1970. and whose husbands are practicing any form orcontrception. Wome 1982 data. orchild-bearingage are generally womeL aged 1549. although for some countries contraceptive usae is meaured ror odier age POPULATION AND VITAL STATISTICS groups. Tat98 Plodatfim. MM-Yew (thousandr)-As of July 1; 1960. 1970. FOOD AND NUTRMION. and 1983 data. trrbm PopnkWJ (pesgrcent of tal)-Ratio, of urban to tomi )1sdxefFdtJdPadacit Per Cait (1969-71- IN)-Index ofper population; different definitions of urban areas may affect compar- caplud annmal productaon os all food commoditie P smducton ability of data atnong countries 1960. 1970, and 1983 data. excludes ansmal feed andd seed5 fore agncltumFod cmoditiesar ablisy ofdataamon coutries 196.197. an 198 t1~include primary commnodities (e.g. sugarcane instead of sugar) P*put Projectons . which are edible and contain nutrients (e.g. coffec and tea arc Population in year 2000-The projection of population for 2000 excluded) they comprise cereals, root crops, pulses, oil sds. made for each economy separately. Stating with information on vegetables, fruits. nuts. sugarcane and sugar beets, ivestock, and total population by age and sex. fertility rates, mortality rates, and livestock prduct. Aggregate production or ech countty is ba#d international nigration in the base year 1980, these parameters on national average producer price weights; 1961-65. 1970. and were projected at five-year intervals on the basis of gencralized 1982 data. assumptions until the population became stationary. PCrrGplifSupplyetfC riers (perceat efq_JC et)-Comput- Statiosriv poputation-Is one in which age- and sex-specific mor- ed from calorie equivalent of net food supplies available in country tatity ratcs have not changed over a long period, while age-specific per capita per day. Availabl supplies mnprise domestic produc- fertility rates have simultaneously remained at replacement level tion, inports less exports. and changes in stock. Net supplies (net reproduction rate- 1). In sudh a population, the birth rate is exclude animal feed. seeds for use in agriculture. quanities ued in constant and equal to the death rate the age stucture is Also food procesing, and losses in distribution. Requirements were constant, and the growth ratc is zero. The stationary population esdmated by FAO based on pysiological needs for normal actvity sie was estimated on the basis of the projected characteristics of and health considering environmental temperature, body wesghts. the population in the year 2000. and the rate of decline of fertility age and sex distribution of population. ind allowiing 10 perent for rate to repblcment lcvd. waste at household level; 1961. 1970 and 1982 data. Popsdaizn Moenturn-Is the tendency for population growth to Pr COPEa Sapply ofP Awe (raisor pa day)-Proten content of continue beyond the time that replacment-level fertility has bcee per capita net supply or food per day. N4et supply of food is defined achieved; that is. even after the net reproduction rate has reached as above. Requirements for all countries established by USDA unity. The momnentum of a population in the year r is measured as provide for minimum allowances of 60 grats of total protein per a ratio of the ultimate stationary population to the population in day and 20 grams of animal and pube protein, of which 10 grams the year r. given the assumption that fertility remnains at replace- sbould be animal protein. Thse standrds.are lwer than those or ment kvel from year t onward. 1985 data. 75 gmts of total protein and 23 grams of animal protein as an h*d-d. Density averap for the world, proposed by FAO in the Third World Food Pr sqkrm.-Mid-year population per square kilometer (IOD hec- Supply; 1961. 1970 and 1982 data. tam) of total area 1960. 1970, and 1983 data. Per Capst hotel Supply from A_1su ad Pais-Protein supply Per sqkm. agrku nura lwd-Computed as above for agricultural of food derived fron animals and pulses in grms perday; 1961-65. land only. 1960. 1970. and 1982 data. 1970 and 1977 data. P qpatio Age Strnctrn (percentD-Children (0- 14 years). work- ChN ges 1-4) Deah Rate (per tho-nd)-Number of deaths of ing ag (15-64 years). and retired (65 yes and over) as percenutage chidren aged 1-4 years per thousand children in the same age of mnid-year population; 1960. 1970. and 1983 dataL group in a given year. For most developing countries data derived Papidulati Growth Rate (percent)-tof al-A nnual growth rates of from life tabks; 1960. 1970 and 1983 datL total mid-year population for 1950-60. 1960-70. and 1970-43. HEALTH PoplAtle Growt ate (percent)-air.u-AAnnual growth rates Life Ezpecmey at Bkth (yews)-Number of years a newborn of urban populaton for 1950-60. 1960-70. and 1970-83 data. infant would live if prvaiing patterns of mortality for all people  - 25 - Annex I Page 4 of 6 at the ime of of its birth ire to sty the same throughout its life; Pupil-reacher Ratio - prufarr. and seondary-Total students en- 1960. 1970 ad 1983 dam roled in primary and secondary levels divided by numbem of how Msalty Aatr (par oh..sud)-Number of infants who die teachers in the corresponding Lvdse. before reaching one year of oae per thousand live births in a given year. 1960. 1970 and 1983 data. CONSUMPTION Amuv so S* WfIK (pmat of Md , aid Pasenge Cw (per tskasd pepaWna)-Passenger cars com- mwP-Number of people (totaL urban and runa) with rsonable prise motor cars seating ess than eight persons excludes ambul- access to safe water supply (idudes treated swrface watr or ances. hearses and military vehicles. unteated but uncontmmied water such as that tran proIted A Rar Receins (per theamsndpopsa.)-All types of receivers bovehle sprg and saitary wdls) as percentages of their respa for radio broadcasts to general public per thousand of population; tive popuatoni In n urba area a pubic fountain or standpost excludes un-licensed receivers in countries and in years when located nt more than 20D mews from a house may be considered regitrtion or radio sets was in effect; data for rccent years may a beig witi reasonable acoe. of that house In rural ares not be compaable since most countries abolished licensing. easonable adme o imply that the housewifc or members of the TVReers (pgr thsmipepoduieu-TV rcevers for broadcast o _do oot have to spend a diprporfionna part of the day v _ -n rso bdcs ion bo d nt se wow amdis the to general public per thousand population: excudes unlicensed TV ina~ tvhE4esS fi ', receivers in countries and in years when registration of TV sets was Amt. i Exernt Ois,mf (paint ~fp*~pw1fte)au-tae4 wINS, in effect. ml nwv-Number of people (totaL urban. and rural) served by excreta diposl percntages of their respective populations. Newsp4w C;ae (per thorsand peplanin)--Shows the aver- Excreta disposal may include the coLlection and disposal, with or age circulation of -daily general interest newspaper- defined as a wihout teoamt. of buma excrema and waste-water by watcr- periodicl publication devoted prinarily to recording gneral news. borne syseu or the use of pit privies and similar insallations. It i5 consided to be -daily' if it appears at kast four tines a week. R,-bta pfer FI,*iu-lPopulation divided by number of prac- Ca A _u nal Ateadawe per Capa per YeKr-fased on the tisg physicians quaified from a medical school at university level number of ticKets sold during the year. including admissions to ApmuriN per ANurg Pmea-Fopulation divided by number of drive-in cinemas and mobile unims practcing male and female graduate nurses, assistant nurses. LABOR FORCE practicl murs and nuring auxiliaLrie.v . i R _ I I A p Hoq&d &4-4Bed-teed Jb rrw, -if puIation der ner Frmed (trEraDducmponyedicalbu active persons, in- (tota, urban, and ruraa) divided by their resective number,of duding ated foDres and unemployed bu excumding hounves. bedsOavailble in pulbic antdpritns,general .ndspliedgj students, etc.. covening population of all ages. Definitionis in bospial and raehablin cenicrs.Hotal are etblishnents vanous countnies are not comparablek 1960. 1970 and 19S3 data. permanenay staffed by at least one phyician. Establiluhcts prov Fs (perrw-Female labor hfoce as percentage of total labor iding pincpaly custodil care ame not induded. Rual hospitals, force. however. indude health and medical centers not permnntly staffed A ,giknlr (perceon-Labor force in farming. forestry, hunting by a physician (but by a medial assistant, nursc midwife. etc.) and fishing as percentage of total labor force: 1960. 1970 and 1980 which offer in-patient accommodation and provide a limited range data of medical facirties. Inwustry (perc ar-Labor force in mining. construction. manu- Adulse pgr Hrekd Bed-Total number of admissions to or facturing and dectcity. water and gas as percentage of total labor discha fikm hospitals divided by the number of beds. forc 1960. 1970 and 1980 data. PW*ips Rate (pece)j--totu asak, andfJ6d-Participation HOUSING or activity rates are computed as total. male, and female labor roree Ar- Ste f HOr ehel (pons par hviusehdd)-4W. wuba as prcentages of totaL male and female population of all ages animel-A household consists of a group of individuak who share respecively. 1960. 1970. and 19113 data These are based on ILOs lving quarats and their main meals. A boarder or lodger may or participation rates reflecting age-x structure of the population. and may not be induded in the household for statistical purposes. long tune trend. A few estimates arc from national sourc. Aerage N_ilier of Pazma per Areap-total, arIa, aud rmnal- Ecoene D-peudrewy Rado-Ratio of population under IS. and Aveage number of persons per room in al urban, and rural 65 and over, to the working age population (those aged 15-64). occupied conventional dwellings. respectively Dwellings exclude non-permanent strucmres and unoccupied parts INCOME DlSTRIBUTION Pecta of DnANas with E_kc y-eor4 arnsr and ral- Per_uw of Teed Dispesube Icew (bath in ch and kind)- Conventional dwellings with ekctricity in living quartas as percen- Accruing to percentile groups of households ranked by total house- tap of total, urban, and rural dwelings respectivly bold income. EDUCATION POVERTY TARGET GROUPS A4n_d Ewat JAdes The following estimates are very approximate measures of poverty h*auy alo - toado male and fevdm -Gross .oi, m and leves and should be interpreted with considerable caution. female enrolment ofall ags at the primary level as percentages of Eitimated Absolute Rbaerty Incew Leve (US; pe capiea-rhan spective prmary school-ge poputions While many countries and rnal-Absolute poverty income lcvel is that income level consider primay school ae to be 6-11 years others do noto The below which a minimal nutritionally adequate diet plus essential differences in country practces in the ages and duration of school non-food requirements is not affordable. are reflcted in the rtios givaL For some countries with universal Esnjped Relative Rbm ncoen Leed (USS per ca$aJ-arban education, gss enrollment may exceed 100 percent since some an *a-Rural relative povc.ty income lcvel is one-third of pupis are below or above the country's standard primary-school average per capita personal incom of the country. Urban levd is agc derived from the rural level with adjustment for higher cost of Sec;dary sdhol - toea. male and fera--Computed as above: living in urban areas. scondary edation requir at last four yeas of approved pn- Estmated PApian Belaw Abwhore Powt& Jacoae Lewd (per- MOy itrut provides generaL vocationaL or t r training ceai-alah and rura- Percent or population (urban and rural insucti for pupis usaly of 12 to 17 yars of a; correspond- who are absolute poor.' enae coums are genay Clad- Voeana Eiomei (percent ojf smconAy)-Vocational istitu- Comparative Analysis and Data Division ions include tecncaL indsriaL or other programs which operate Economic Analysis and Projections Deparment indepeadenty or as departments of secodary institutions. June 1985  -26 - Annex I :Page 5 of 6 COUNTRY DATA - RWAtWDA AREA 708LAS101 DEWIT (1913) 26.3 tbhousd sq. km. S-7 million (1963) 210 Prr sq. km. "Mt of Crowth: 393 per q. km. of 3.7 *arable land POPULATION CuARACRIs9CS 961-83) WEALTH (1980 Crude Bsrch Rate (Per 1.000) 51.9 ul-tii par phyalcian 31.340 Crude Death Rate tper 1.000) 19.4 Population per hospltal bed 660 IPCOIIC DISTRIUUTIOII KERCY CONSUMPTION PER CAPITA Z of "a1008a income. higsest quintlle .(mlo I coal eqa vi_vae) 21.0 loest quintlle ACCESS TO SD FE WAr^TE (1930) - ACCESS TO ELECTICIY 2 of population - tota1 54.0 S of populatlos - total 2.0 - rural NUTRITION (1981-638 E3)CTION (1tl980) Clorl-e inta *-_ of ruirents S660 Adolt litrep rate- 37.0 Per caplta protein ltake 50.0 Primary school enrollmet 2 72.0 (grams/day) CUP PER CAPITA In 1983 : US 260 GROSS DOMESTIC ProDUcr Is 1963 ANUAL tATE OF cRolir (2. constant 1963 pricte) 21 USS Ni.. S 1979-64 COP at larket Pricet 1.503.1 10.0 4.2 Cross Do_eetic IUVeStmet 203.5 13.5 7.1 Gross atltonal Saving 39.6 2.6 Curreot Aceoat Balance -170 -11.3 Export of Goods, 373 137.3 9.1 -2.83/ Import of Coods. NIs 272.3 18.1 5.1 GOVERMENZT FINANcE Central Gavernuent bur KID. 2 of CUT _954 1954 1960 Current Receipts 11.09 TIM T Current xpeaditure 15,753 10.0 9.4 Current Suwplus/deficlt 1.616 1.0 2.9 Capital Expenditures 2,626 1.7 2.1 Overall Surplesldeficit *t -3.741 -2.3 0.8 I/ Preliuloary data. 2/ uased on end-perlod values. TI The decline In exports drilag tbis period is explatned by tbh fact that 1979 was an export boos year. */ The overall eurplus Is not equal to the differece beteen current savings and dsvelopuent expenditurea because the consolidated surplus or daficit of the Trea sry speclal accounts is not Ehown in thls table. not available not applicable  - 27 - Annex I CoUuVtV DATA - UtAWDA Page 6 of 6 hOVgC CREDIT AND PRICES 1979 1980 1981 1912 1983 1984 (Milli iWF outstanding ead period) Meney Suppiyl