Peru - Eighth Highway Project

Docmst of The World Bank FOR 0mVIAL US OLY Repet N.. 12004 PROJECT COPLETION REPORT PERU EIEGHTI HIGHWAY PROJECT (LOAN 2091-PE) JUNE 25, 1993 MICROFICHE COPY Report No. :12004 PE Type: (PCR) Title: EIGHTH HIGHWAY PROJECT - LN 20 Author: WATKINS, HELEN Ext. :31708 Room:T9102 Dept. :OEDD3 Infrastructure Sector Operations Division Country Department I Latin America and the Caribbean Regionsl Office This document bas a restricted distribution and may be uwd by recipients only in the performance of their official duties. Its contents may not otbtrwise be disclosed without World Bank autborizstion.  January I to December 31 Currency Eoyivalents 1981 US$1 = SOLES 422.32 1982 US$I = SOLES 697.57 1983 US$I = INTIS 1.63 1984 US$I = INTIS 3.47 1985 USSI = INTIS 10.98 1986 USSI = INTIS 16.84 1987 US$I = INTIS 128.83 1988 US$I = INTIS 2,666.19 1989 US$1 = INTIS 187,885.63 1990 USSI = INTIS 1991 US$I = NEW SOLES 0.77 Weleits and MeasureS I kilometer (km) = 0.62 mile (mi) I meter (m) - 3.28 feet (ft) 1 kilogram (kg) = 2.20 pounds (b) I metric ton = 2.205 pounds I metric ton-kilometer = 0.69 short ton-mile 1 passenger-kilometer = 0.62 passenger-mile Abbreviations BIRF Banco Intemacional de Reconstruccifn y Fomento COFIDE Corporacifo Financiera de Desarrollo DGC Directorate General of Highways IDB Interamerican Development Bank KFW Kreditanstalt fur Wiederaufbau MTC Ministry of Transport and Communication PCR Project Completion Report SEM Mecanical Equipment Service  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Office of Director-Ge.eral Operations Evaluation June 25, 1993 MEMOLINDUM TO THE E%ECUTIVE DIRECTORS AND THE PRESIDENT SUBJECTs Project Completion Report on Peru Eithth Hiahwav Pro1ect (Loan 2091-PE) Attached is the report entitled "Project Completion Report on Peru - Eighth Highway Project (Loan 2091-PE)", prepared by the Latin America and the Caribbean Regional Office. The report includes a project review by the borrower (Part II). The project sought to support road improvement, rehabilitation and maintenance and development of road sector institution4s. Adverse macro-economic conditions, frail institutions, insufficient government commitment, loan suspension (for country reasons) and natural disasters severely constrained implementation and attainment of objectives. Less than two-thirds of planned civil works were completed. Improvements in road maintenance capacity were minor. Strengthening of institutions was well below expectations. On balance, project performance was rated as unsatisfactory, institutional development as negligible and sustainability as uncertain. The PCR is of excellent quality. No audit is planned. Attachment _i _ This document has a restricted distribution nd may be used by recipients only in the performance oti their official duties. Its contents may not otherwise be disclosed without World sank authorization.!  FOR OMCIAL USE ONLY PROJECT COMPLETION REPORT PERU EIGHTHI AIlGHWAY PROJECT (LOAN 2091 PE) Table of Contents PREFACE.................... i EVALUATION SUMMARY .................... ii PART I - PROJECT REVIEW FROM A BANK PERSPECTIVE A. Project Identity .............. 1 B. Background ........... I C. Project Objectives and Description ............................ 2 D. Project Design and Organization ............................ 3 E. Project Implementation ........................................... 4 (i) Loan effectiveness .4 (ii) Restructuring of project under the Emergency Relief Program. 4 (iii) Evolution of project until general suspension of Bank disbursements in Peru 5 (iv) Final phase of project from suspension of disbursements to cancellation ... 6 F. Project Results. 7 G. Project Sustainability .............................. 9 H. Bank Performance ........................... 9 L Borrower Performance ........................... 10 J. Project Relationship ........................... 10 K. Project Documentation and Data ........................... 10 L Lessons Learned ........................... 10 PART H - BORROWER'S PERSPECrIVE ON PROJECT IMPLEMENTATION PART m - SrATIMSTCAL INFORMATION 1. Related Bank Loans. 15 2. Project Time Table .17 3. Loan Disbursements .17 4. Project Implementation. ............................ 19 5. Project Cost and Financing .20 6. Project Results .21 7. Status of Loan Covenants .23 & Use of Bank Resources .27 9. Missions .28 This document has a restricted distribution and may be used by recipients only in the performance of their oMcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  -i- PRQII