Liberia - Fourth Highway Project

Document of The World Bank FOR OFFICIAL USE ONLY UP Report No. 1827-LBR LIBERIA PROPOSED FOURTH HIGHWAY PROJECT STAFF APPRAISAL REPORT May 4, 1978 Western Africa Projects Department Highways Division This documnent is a reddcted dbtrbodbn and may be used by recipients only In the perfornmce of their offichl duties. Its contents may not otherwise be disclosed without World Bssl authorition.  Currency Equivalents US$1.00 = Lib$1.00 Fiscal Year July 1 - June 30 System of Weights and Measures: British/US British/US Metric 1 foot (ft) 5 0.305 meter (m) 1 mile (mi) = 1.61 kilometers (km) 2 1 square mile (sq mi) 2.59 square kilometers (km ) 1 ton (long ton) 1.016 metric tons (m tons) Abbreviations and Acronyms FRG - Federal Republic of Germany MCIT - Ministry of Commerce, Industry and Transportation MPEA - Ministry of Planning and Economic Affairs MPW - Ministry of Public Works NPA - National Port Authority PPD - Planning and Programming Division (MPW) SAUTI - Sauti Overseas (consultants, Italy) UNDP - United Nations Development Programme USAID - United States Agency for International Development voc - vehicle operating costs vpd - vehicles per day  FOR OFFICIAL USE ONLY LIBERIA STAFF APPRAISAL REPORT PROPOSED FOURTH HIGHWAY PROJECT Table of Contents Page No. I. THE TRANSPORT SECTOR ........ ........ A. Geographic and Economic Factors Influencing Transport .......... ..........e..*............. 1 B. The Transport System . ..... ..... ........ 2 C. Transport Policy, Planning and Coordination ........ 4 II. THE HIGHWAY SUBSECTOR .................. ..... ..* ..... 8 A. The Highway Network ..........*..................... 8 B. Traffic and Road Transport Industry ......... ....... 10 c. Administration ................................... 12 D. Staff and Training ................................. 13 E. Highway Planning .............................. 14 F. Highway Financing .................................. 14 G. Engineering ......... ................................... 16 H. Maintenance ........*.....*.... ................ .... 17 I. Construction ...*.******** *.... ...... ....... ........ 18 J. Environmental Aspects ... . ....... ... o ...... .... . 20 K. Past Bank Assistance . *.oo*oo.o.o*o.o .. ... . . 20 III. THE PROJECT ............. ................................ 23 A. Objectives . ..... oo ................................ 23 B. Description .*..........o......*...*o.o.*. . .......... 23 C. Project Cost and Financing ..o ....... ............. 25 D. Implementation .... *.0 ..... .0 ... .. . ....... . .. ....... 27 E. Procurement . ...... .......o......0 ... O..... 28 F. Disbursements ...........o*0..* ....................... .... 28 This report has been prepared by Messrs. D. Jovanovic (Economist) and R. Millard (Engineer) following an appraisal mission in June/July 1977. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Table of Contents (Continued) Page No. IV. ECONOMIC EVALUATION ..... .................................... 32 A. General ............................................. 32 1. Improvement of Paynesville-Totota Road ........ 32 2. Improvement of Paynesville-Robertsfield Road .............................. 36 3. Other Project Elements ........................ 38 B. Risks .............................................. 39 V. RECOMMENDATIONS . ........................................ 39 ANNEXES I Economic Evaluation of Paynesville-Totota and Paynesville- Robertsfield Roads 2 Terms of Reference for Technical Assistance to Planning and Programming Division (MPW) 3 Terms of Reference for Reorganization of Transport Planning and Coordination 4 Terms of Reference for Organization and Execution of Road Maintenance 5 Documents Available in Project File MAP IBRD 13313  LIBERIA STAFF APPRAISAL REPORT PROPOSED FOURTH HIGHWAY PROJECT Introduction and Summary (Sector and Project Sections of President's Report) I. THE TRANSPORT SECTOR A. Geographic and Economic Factors Influencing Transport 1.01 Liberia with an area of 43,000 square miles consists of a narrow coastal plain with extensive swamps, tidal lagoons and creeks; a central area of plateaux and narrow valleys containing the high rain forest; and of a mountainous area along the Guinea border. These geographical features do not constitute a major obstacle to transport development, except possibly along the coastal belt. The population of 1.5 million is unevenly distributed with well over 60% occupying 30% of the land area in the central and southwest regions of the country. Monrovia, the capital and commercial center, alone has about 15% of the population. 1.02 The country is rich in natural resources, notably in iron ore, timber and rubber. Despite the potential, economic development has been very modest and the development of the transport infrastructure has been largely associated with the enclave-based economy. Over the period 1967-74 the average growth of the economy was 5% in real terms but slowed to only about 1% per year in 1974-76. Per capita gross domestic product (GDP) in- creased over 1960-1975 at about 2% p.a. reaching some US$450 in 1976 which is high compared to most African countries. The share of transport sector in GDP is relatively high (mainly due to ship registration fees), 1/ reaching about 8% in current prices; the growth of the transport sector was about 7% in real terms during 1971-74. The country's economy has been and is still essentially based on foreign enclaves -- iron ore mines, forestry concessions and rubber plantations -- which contribute about 40% of GDP. Apart from possible iron ore concessions under study, the principal export potential still to be developed is timber. Potential production in the forest area bounded by Zwedru, Greenville and Port Harper is about 800,000 tons per year. Infra- structure development will be needed to exploit these resources. The rest of the economy predominantly comprises traditional agriculture, mainly rice, cassava, palm products and sugar cane; the traditional economy contributes about 14% of GDP. 1/ It costs US$1.20 a ton to register a ship in Liberia for the first time and 10 cents a ton annually thereafter.  -2- B. The Transport System 1.03 The transport infrastructure consists of about 4,900 miles of roads, three privately-owned railways totalling about 300 miles, four sea- ports and 14 airfields served by scheduled flights. The system reflects the enclave-based economy for which it has been developed. However, it will require major investments for its improvement and modernization, following new development targets (set in the 1976-1980 Plan) which include a more diversified agriculture-based economy. Unlike most other West African coun- tries, even the trunk road network is not yet established. 1.04 Major transport flows (Page 3) reflect the country's current eco- nomic activity. Railroads carry some 20-25 million tons of iron ore annually to the ports of Monrovia and Buchanan. More than half of all road transport, the predominant mode for passengers and goods other than iron ore, is concen- trated in the Monrovia region and along the Monrovia-Ganta axis, the location of most of the rubber plantations. Internal air transport is negligible. Commercial coastal shipping does not exist even though it could provide a link between Monrovia and the southern part of the country, which is poorly served by roads. (a) Highways 1.05 Details of the highway sub-sector are discussed in Chapter 2. (b) Railways 1.06 The railway network, owned and operated by four mining concessions, consists of (i) the Monrovia-Bomi Hills Mine-Mano River line (90 mi), (ii) the Monrovia-Bong Mine line (48 mi) and (iii) the LAMCO line (166 mi). Except for the LAMCO line, the railways are used exclusively for transporting iron ore from the mines to the ports. This traffic increased from about 12 million tons in 1964 to about 20 million tons in 1975. In addition to other mine- related traffic which all the railways carry, the LAMCO line carries some 100,000 tons of general cargo annually including about 10,000 tons of rubber and 6,000 tons of logs and sawn timber for other concessions as well as about 150 passengers daily. 1.07 The future development of the railway network will, as in the past, be linked with expansion of the mining sector and a number of projects are under study. Two needs will be (i) the construction of a new railway line or alternatively of a pipeline from the Wologisi range in the northeast to con- nect to a coastal port to carry some 10 million tons of iron ore annually and (ii) the extension of the LAMCO line into Guinea to transport by 1982 up to 15 million tons per year of Guinea's iron ore to the Buchanan port. A study is already underway to investigate the additional railway and port facilities necessary.  -3- (c) Ports 1.08 Liberia has four seaports: M3nrovia and Buchanan which ale deep- water ports and handle over 90% of foreign trade, and Greenville anal Harper, which are shallow-water ports and handla mainly log exports. A sumnLary de- scription of the recent port traffic is given in the table below. Port traffic increased from 16.1 million tons in 1965 to about 27.0 million tons in 1973, a growth of about 7% p.a; the najor growth occurred in iron ore. Since 1974 general cargo and transshipment traffic has been declining due partly to restrictive import regulations and partly to the world economic recession which has lowered demand for iron ore. Traffic Development by Mode 1971 1972 1973 1974 1975 1976 a. Road Transport (in tons) Freight 1/ 750,000 - - - - 900,000 b. Traffic in Ports (in '000 of Long tons) Monrovia 12,410 12,370 13,744 13,312 11,082 11,673 Buchanan 10,340 11,608 12,956 13,104 8,957 n.a. Greenville 166 161 204 123 153 254 Harper 54 38 54 37 35 57 c. Commercial International 2/ Air Traffic Number of Passengers 3/ 51,797 53,652 58,753 68,270 70,387 82,927 Cargo (tons) 4/ 1,746 1,576 1,940 1,668 2,628 3,053 Mail (tons) 4/ 174 195 244 245 274 n.a. 1/ Estimates based mainly on total agricultural production and imports. 2/ At Monrovia International Airport; data for domestic air traffic are not available. 3/ Disembarking and embarking. 4/ Exported and imported. Source: Economic Survey of Liberia for 1975; National Port Authority, July 1977; Bureau of Civil Aviation, MCIT, July 1977; and Mission estimates. 1.09 The National Port Authority (NPA) administers three ports; the opera- tions of the fourth port, Buchanan, are directed by LAMCO. NPA operations are fairLy efficient, although stronger planning and coordination and additional professional personnel are needed. Its operations are profitable, making an annual profit of US$1-2 million.  - 4 - 1.10 Capacity is adequate at all the ports, but mining and forestry developments will call for expansion of facilities or even some new p,ort development. On the basis of consultant forecasts of general cargo traffic, the 2lonrovia port would require additional general cargo quay length and more warehousing space by the early 1980's. The channel needs dredging to increase the safety of existing ore carrier operations and possibly to accept 150,000 - ton vessels in the future. A contract has been signed for a consulting team to study the modernization and expansion of Monrovia port. The stucy is financed by NPA and should be completed in 1979. The future needs of the Buchanan port will be determined by decisions on transporting Guinea's iron ore on the LAMCO line. The capacity of the Greenville port is being increased by about 150,000 tons under a loan from the Federal Republic of Germany (FRG), and the Harper port is expected to be studied under prospective aid from the European Economic Community. Potential timber exports from the hinterland of up to 800,000 tons per year and possible mining operations imply a need both to expand the capacity of the ports and to improve communications between the ports and the interior. (d) Air Transport 1.11 Liberia has two international airports: one at Robertsfield almost midway between Monrovia and Buchanan, and the other at Spriggs Payne near Monrovia. There are also numerous airfields of which 12 are served by sched- uled flights. International passenger traffic has increased at a high rate of 8% p.a. since 1971, reaching about 83,000 in 1976. A similar percentage increase has been registered over the same period in air cargo to and from Liberia. An airport improvement program started in 1971 with funds from USAID to reinforce and extend to 11,000 feet the runway at Robertsfield, construct a new control tower, and to install an instrument landing system. A new terminal building was completed and put into use in February 1978 and the runway shoulders are being widened to accommodate Boeing 707s. The 4,800 foot runway at Spriggs Payne was recently extended to accommodate aircraft up to DC-8 size. 1.12 Domest:ic air transport, handled by the Government-owned Air Liberia (AL) and two non-scheduled charter companies, has been declining over the past six years. AL is most affected; it is inefficient and its losses increased from US$0.6 million in 1974 to about US$1.0 million in 1976. Since 1976 it has been managed by British Caledonian Airways. Domestic service has an important role in transport to remote parts of the country not yet served by all-weather roads. AL has sufficient capacity to meet Liberia's needs for the time being. C. Transport Policy, Planning and Coordination (a) Investment Policy 1.13 The Government's objectives for the transport sector are presented in the First Development Plan 1976-1980. They can be summarized as follows: (i) to improve road maintenance; (ii) to improve road access to the port of Monrovia; (iii) to upgrade key primary roads and extend the seconidary road  - 5 - system to centers of agricultural development activities; (iv) to provide most urgent feeder roads to support rural development; (v) to increase port capacity in Monrovia and Greenville; and (vi) to modernize the international airport in Monrovia. More recently the Government has also put emphasis on improving road links with neighboring Sierra Leone, under the auspices of the Mano River Union, and increasing the capacity of the LAMCO railway and the Buchanan port to accomodate Guinea's iron ore exports. 1.14 Under the Plan total investments in the transport sector for 1976-80 amount to about US$153 million or 42% of all investments. 1/ The table on page 6 shows that foreign sources are expected to contribute about US$110 million and the Government, about US$43 million. The program might be too ambitious. Some of the projects do not have external financing secured, and furthermore it is uncertain that the Government could provide the funding for its share. Some of the road projects, as well as the extension of Green- ville port, have questionable priority. In general, the list of transport projects does not seem to be based on a comprehensive analysis of demand in other economic sectors or on established development policy. Nevertheless, the Plan marks a new, positive development by bringing a more organized mid-term approach. 1.15 Most of the investment in the sector, about US$141 million or 92%, is devoted to improvement of the neglected road network (para 1.03). About 120 miles of road construction projects are underway or were completed in 1976. If the Plan materializes on time, which does not appear likely, about 325 mi will be improved to paved standard and an additional 355 mi to gravel standard by 1980. The Plan also incorporates the Government's Five-Year Road Maintenance and Development Program (1973-77), estimated to cost about US$12 million. This is being implemented with financial assistance from the Bank, the African Development Bank, USAID and FRG. One purpose of the proposed project is to provide for the continuation of this program. The Plan also includes feeder roads, and construction of about 270 mi is planned for the four-year period (150 mi by the Bank under the Third Highway Project and the remaining 120 mi by USAID). 1.16 Port investments are made on a case-by-case basis, and a master plan for port development is needed. The Plan does not consider the railroad sub- sector which is outside Government control. Air transport plays a minor role; its treatment in the Plan seems to be adequate. (b) Transport Planning and Coordination 1.17 The concept of integrated development planning has only recently emerged in Liberia. There is evidence of a growing desire in the Govern- ment to coordinate transport development and to relate it to the overall development strategy. Formation of a centralized transport planning capac- ity has been hampered by a shortage of qualified and experienced personnel. 1/ This compares with total investments of US$27 million for 1972-1975, or about 25-30% of all public investments in the period. (See table on page 6.)  -6- Investments in Transport Sector (in US$'000) A. Actual Investments in 1972-1975 1972 1973 1974 1975 1. Roads Construction Foreign 2,610 186 4,026 3,798 Government 708 1,050 738 1,870 Other 1/ 48 2,213 2,335 1,845 Total 3,366 3,449 7,099 7,513 2. Airports Foreign 1,900 762 596 1,730 3. Ports Foreign 220 - 130 260 Government _ 20 Total 220 - 150 260 Grand Total 5 486 4 211 7 845 9 530 B. Investments Envisaged in 1976-1980 Elan Prolects A 3/ Prolects B 4/ Total 1. Roads 2/ Construction Foreign 40,040 53,020 93,060 Government 11,390 18,430 29,820 Other 1/ Foreign 11,190 510 11,700 Government 4,370 1,965 6,335 Total 66,990 73,925 140,915 2. Ports Foreign 5,200 - 5,200 Government 3,650 - 3.650 Total 8,850 8,850 3. Airports Foreign _ _ Government 3,250 3,250 Grand Total 79,090 73,925 153,015 Foreign (56,430) (53,530) (109,960) Government (22,660) (20,395) ( 43,055) 1/ Maintenance equipment, spare parts, street reconstruction, studies, etc. 2/ Original figures were adjusted because of revised cost estimates and road design standards. 3/ Projects completed in 1975 or underway. 4/ Some projects are expected to start soon; others do not have financing secured, and it is uncertain whether they will be realized during the plan. Source: Ministry of Planning and Economic Affairs, July 1977.  - 7 - 1.18 The Government is considering a Bank proposal to strengthen the Bureau of Transportation (BT) in the Ministry of Commerce, Industry and Transport (MCIT) to coordinate all transport planning and management. BT already has two divisions, one handling land transport and the other handling civil aviation. Some reorganization and increase in staff will be required for the Bureau to assume wider responsibilities in the transport sector. Technical assistance will be needed for at least two years to establish the reorganized BT as an effective unit for transport planning and coordination. The Government has agreed to engage a transport specialist to prepare a position paper. The specialist will be financed by UNDP and work on the basis of Terms of Reference (Annex 3) agreed upon with the Government.  -8- II. THE HIIGHWAY SUBSECTOR A. The Highway Network 2.01 Liberia's public road network falls short of the country's needs both in coverage and quality. There are only 230 miles of asphalt surfaced roads of which half are in the vicinity of Monrovia and other townships. Another 1,770 miles are classified as having all-weather surfacing, but passage over many parts of these roads is uncertain in wet weather. The remaining 1,432 miles of the public road system consists of dry-weather roads and tracks. As shown below there are, in addition, 1,444 miles of private roads built and maintained by rubber and timber concessionaires, some of which are available for public use. Development of the Highway Network (miles) 1964 1971 1974 1977 A. Public Roads Primary Roads Asphalt Surfacing 160 203 208 230 Gravel Surfacing 650 941 968 946 810 1,144 1,176 1,176 Secondary Roads Gravel Surfacing 330 487 707 823 Dry-weather Roads 610 1,270 1,265 1,432 940 1,757 1,972 2,255 Subtotal A 1,750 2,901 3,148 3,431 B. Private Roads 1/ Asphalt Surfacing 30 86 86 90 Gravel Surfacing 500 1t184 1,308 1.354 Subtotal B 530 1,270 1,394 1,444 Total 2,280 4,170 4,542 4,875 1/ Concession roads as part of enclave operations (iron ore, timber, rubber). Source: SAUTI Report, 1971; MPW Planning and Programming Division, 1977.  - 9 - The classification of roads in Liberia recognizes three types of road -- primary, secondary and rural. The distinction between roads classified as primary and secondary is not always clear and Liberia needs a more sophi- sticated, functional classification of roads, distinguishing between roads with national, regional or purely local functions. In this report, the terms "main road," "secondary road," and "feeder road" are used to make this dis- tinction. 2.02 The layout of the main and secondary road system is shown in the Map. In essence it consists of: (a) a main road running northeast from Monrovia bisecting the country and travelling through Sanniquellie to the common border point with Guinea and Ivory Coast, and with two tributory main roads one extending to Lofa County in the north and the other extending southeast through Nimba County and Grand Gedeh County to reach the coast at Greenville and Harper; (b) a network extending northwest from Monrovia to the border with Sierra Leone; and (c) a coastal road southeast from Monrovia past the inter- national airport at Robertsfield to Buchanan. The Government intends to build a gravel road from Bopolo through Bella Yella to Kolahun with assistance from USAID. Although this road is being designed to quite a low standard (20 ft. carriageway, gravel surface), it is likely that it will rapidly become an important traffic artery between Monrovia and the north of the country. 2.03 The general form of the main road system north of the Monrovia- Sanniquellie road is clear. An immediate objective is to provide access to the prospering agricultural areas in the north of Lofa county; a longer term objective is to open up for development the more thinly populated areas in the center of the region. In this part of the country, priorities in road buildling are: (a) to upgrade the main road system to a standard adequate for the expected traffic, and (b) to develop the subsidiary road system to serve development needs, distinguishing as soon as practicable between routes which will function as secondary roads and roads which have only a local function. 2.04 In the southeastern half of the country the lines for development of the highway system are less obvious. The present trend, following existing roads and tracks, is to develop the road connection from Monrovia to Harper and other southern townships in a huge semicircle which travels northeast  - 10 - almost to the border with Guinea before turning southward to link with the south. A southern coastal highway has been considered to link Harper and the southern coastal region more directly with the capital. As this region is developed, there will clearly be a need for such a road, but it is not obvious what route this road should follow or when it should be built. Decisions on the development of the highway system of the southeastern region of Liberia depend, first, on the potential for development in the interior of Grand Bassa, Grand Gedeh, Sino and Maryland counties, second on Government decisions on the form and location of such development, and finally on the production of a transport plan for the region which considers not only highways but also the possibilities of coastal shipping and of further development of port facili- ties along the southern coast. B. Traffic and Road Transport Industry 2.05 An indication of the growth and composition of the vehicle fleet is provided by the only data available on vehicle registrations and is summarized below: Vehicle Registrations Passenger Cars Taxis Trucks 1/ Buses Total 1970 9,377 4,735 5,234 3,864 23,210 1971 8,996 4,103 5,454 2,521 21,074 1972 10,607 3,384 4,730 2,575 21,295 1973 10,769 3,507 5,384 3,135 22,795 1974 9,875 4,576 5,841 1,800 22,092 1975 10,375 2,421 5,466 2,497 20,759 1976 11,800 1,967 4,770 2,600 21,134 1/ Including pick-ups. Source: Ministry of Finance, Motor Vehicles Division; and Ministry of Commerce, Industry and Transportation, July 1977. In the decade up to 1970 vehicle registrations had been increasing at 11% per annum, but vehicles going out of use were not automatically deregistered. A start was made in 1970 to remove from the register vehicles no longer in use. The effects of this change explain much of the inconsistency in the table. Taking into account the data on fuel consumption given below, it seems likely that over the last eight years private car use has increased slowly, while the use of trucks and buses has fluctuated but not increased to any marked degree. Therefore, it seems likely that the fleet in use is somewhat smaller than presented in the table. Recent trends are for larger trucks to replace small ones and for a rapid increase in mini-buses. Most of these latter are regis- tered in the Monirovia area. As yet about 50% of passenger transport is concentrated in and around Monrovia.  - 11 - Total Consumption of Petroleum Products (in '000 US gal) Gasoline Kerosene Gas-Oil 1971 19,987 3,695 51,181 1972 16,098 3,144 48,688 1973 21,374 3,823 58,046 1974 18,891 3,616 61,614 1975 21,078 3,139 54,676 1976 23,728 3,251 48,140 Source: Liberia Refinery Company Reports; Ministry of Finance, July 1977. 2.06 The last comprehensive counts on the network were made in 1971. With technical assistance provided under the Second and Third Highway Proj- ects, more systematic traffic counts on the primary system were introduced in 1976. Data available so far indicate that about 200 miles of roads carry over 500 vehicles per day (vpd) and about 800 miles carry more than 100 vpd. The most heavily trafficked road is the Monrovia-Totota-Ganta road which carries about 4,000 vpd near the capital and some 300 vpd near Ganta. Based on an analysis of general economic trends, fuel consumption and vehicle fleet development, an overall traffic growth rate of about 5% p.a. is forecast for 1977-81. 2.07 Government policy encourages the free development of the road transport industry. Regulations govern only vehicle licensing, registration and inspection; tariffs for intra-city taxi services; and vehicle dimensions and axle load limits. Other passenger transport and "for hire" trucking are free from regulations governing routes, tariffs, or entry into the industry. Although the situation in the industry is generally satisfactory with suf- ficient competition among carriers, the difficulty derives from the system of regulations dividing responsibility between MCIT (for vehicle licensing) and the Ministry of Justice (for remaining regulations) which is not an optimal solution. More generally there is a lack of reliable data on the numbers and types of road vehicles in regular use, on traffic flows on the different classes of road, on the movements of people and goods by road and no vehicle loadings. Road accidents are said to be increasing at an alarming rate but there is no data on their frequency, location and attributed causes. Such information is necessary as a basis for transport planning. Responsibility for obtaining this data and for other functions of a road traffic authority will be considered as part of the proposed review of the reorganization of transport sector planning and coordination (para. 1.18). 2.08 Increasing congestion is hampering the movement of people and goods in Monrovia. Some relief will be provided by the reconstruction of UN Drive and by the building of a new Mensurado bridge under the Third Highway Project. But traffic control is minimal, indiscriminate parking is condoned, and minibuses, though proving a popular and effective means of transport, operate  - 12 - without control over their franchise and routing. The problems of urban traffic flow are being considered more comprehensively in the urban development study which is being undertaken as part of the Third Highway Project. C. Administration 2.09 The planning, design, construction and maintenance of roads and public bui4dings are the responsibility of the Ministry of Public Works (MPW). The organization of the Ministry is shown below. LIBERIA FOURTH HIGHWAY PROJECT M. P. W. Orpnion CMl" 1976 MINISTER OF PUSL6C WORKS R.Ll l~~ DEPUTY MINISMTR FOR iP 0UTY MINISTER FOR LAOMIN15TRATtON l | CHNlCAL 5ERVICKSl p~~OJucT FVRMAO OPRA~TION CoNETRUCVION TCNCI RG=N 9 i [ ~~COOROINATO* BUEA I UFI [ SERVICES111URAU | [OGAIN SE5CRETARIAT l SE5CRETARIA | SE,ECTgAWAT | ERTRA ThANr^^r| I "SPONTI FCNANCE TRCOASULTANNtS| SJLJtY|E ININERIN T L _ _ *~~~~~~~~~~~~~~~~~~~~~~~A ECONOMIC a AccouNn I | HIGH I | oPICr J ARCHITECTURE } PLANNINa I _ ~~~MAINTENANCE _ -OROINATON _ UW 2 UCIOhIN REEaRCH ZONINGlA l PEFRSONNEL INGL ln& 4EGl{Fh ; M tiOBILE Cl _ TUCTOION _RVE^U R WOOD WOREK _BUt LOING5 PRtOCUREMENT S4O l EUPMEN CLE, | SHISING | COOf n SERVICII | ASSISTANT 1 | ~~~~ASISHMANTg COLI.GIALAUTHORITY ClS * LLI. -INTIRA- BUREAU CONTROL _~~~~~~~~~~~~~~~~~~~WWW ,-w _lE N Each of the four functions above is undertaken by separate divisions of the ministry for both roads and public buildings. Coordination of the activities of the divisions is done at a high level, adding to the heavy work load of senior staff. The Planning and Programming Division is a recent innovation with technical assistance provided to build up its competence as part of the Third Highway Project.  - 13 - D. Staff and Training 2.10) MPW has a payroll exceeding 4,000 employees. There are some 50 professional engineers and 12 architects in the Ministry. Recently, the Ministry recruited a number of Haitian engineers who are bringing useful experience into the country. The annual budget of MPW (about US$14 million in 1975) has increased yearly. The average annual expenditure per professional man does not represent an unduly high work load on each individual. In the highway field, the senior staff are long in experience but short in knowledge of up-to-date methods of road construction and maintenance. The more junior staff have generally a fairly good academic background but they do not have much opportunity to build up experience in design or construction. Most major road works are designed and supervised by consultants and undertaken by foreign contractors. Ministry engineers have little opportunity to gain practical experience of the advanced techniques of design and construction used on major road works. 2.11 Under MPW's manpower development program, scholarships are awarded to engineers for study in the USA and at the University of Liberia. This program is assisted by the Bank (two transportation economists are studying in the USA under the Third Highway Project). Although precise estimates are not yet available, it seem likely that the number of engineers goin$ for first-degree studies does not fall far short of the likely demand. The main needs are to provide good, practical experience in planning, design, construc- tion and management; and for the opportunity to obtain detailed knowledge of the techniques of highway engineering as is being provided by short post- graduate courses in many parts of the world. One aim in the proposed Fourth Highway Project is to provide more opportunities for local engineers to obtain good practical experience (para. 3.05). 2.12 Although training for sub-professional staff is developing fairly well, there is still a considerable shortage of trained and experienced foremen, mechanics, and machinery operators. MPW provides scholarships for over 50 technicians each year for basic training. In addition, the training school for mechanics and highway technicians at Camp Mechlin provided under aid from FRG has been fully operational since mid-1975 and is now producing a steady stream of trained personnel. Consultants on highway maintenance under the Second Highway Project are providing on-the-job training for foremen, plant operators and mechanics. Aid from the FRG for the training school was scheduled to cease in March 1978, with the intention that the Liberian Govern- ment take over the financing of the school and direct its work. FRG has agreed to continue limited aid in the form of expert advisors for one more year; the Liberian counterpart staff have been rapidly gaining experience both in technical matters and in administration of the unit. 2.13 These training schemes are available only to government employees. The Government is considering opening its training facilities to contractors' staff. As yet, domestic contractors in the highway field are not sufficiently strong to tempt trainees out of government service.  - 14 - E. Highway Planning 2.14 The Planning and Programming Division (PPD) of MPW starteui opera- tions in 1975. Its functions include the collection and analysis of data on roads and road transport, the overall planning of the development of the road system, liaison with other government departments on transport policies and on traffic regulation, and individual studies to determine economic priorities and design standards. PPD, for instance, has functioned as a focus for interministerial planning for a feeder road project scheduled for FY79. Progress of PPD has been reasonably good. A transport economist and two scholarships were provided under the Third Highway Project, and increased assistance is included in the proposed project to help MPW to develop its capacity for highway planning. F. Highway Financing 2.15 Road construction works have been financed largely by foreign lend- ing with the Bank Group, USAID, FRG and the African Development Bank (AfDB) as principal sources. Capital investments in highways have been at a low level, and in the period 1972-1975 only about US$7.5 million was invested in new road construction (page 6). The Four-Year Development Plan (1976-1980) gives priority to the development of road transport infrastructure; about US$141 million (US$36 million to be financed by the Government) was envisaged for the highways, about 38% of total investments. It has proved difficult to muster all the resources necessary, and after two years it is evident that the road component of the plan will not be achieved on time. One difficulty lies in the current trend of aid donors to favor projects which directly concern rural developmernt. 2.16 Annual expenditures for all MPW's operations (administration, technical services, force account construction and road maintenance) are financed from the general budget, consisting of the recurrent budget and the development budget. Expenditures for recurrent maintenance increased f rom US$1.5 million in 1971 to about US$2.6 million in 1975. The funding of highway maintenance improved substantially in 1976, when the total amount allocated to recurrent road maintenance reached about US$5.3 million as shown in the following table:  - 15 - Government Expenditures for Highways, 1971-76 (in US$ '000) Recurrent Maintenance Expenditures Total Maintenance Personnel Operations Total Expenditures 2/ 1971 875 689 1,564 2,607 1972 899 973 1,872 2,983 1973 620 1/ 716 1,336 2,951 1974 310 T/ 1,822 2,132 3,185 1975 358 2,246 2,604 8,019 1976 428 4,882 5,310 10,974 1/ Reduction in recurrent operations due to transfer of staff to General Service Administration. 2/ Including foreign assistance and capital expenditures. Source: Ministry of Public Works, Planning and Programming Bureau, July 1977. Now the main limitation arises in organizing and executing rather than funding road maintenance. For 1977/78 the Ministry of Finance has indicated that US$6.5 million will be allocated for recurrent maintenance. This sum, if efficiently dispersed for the purpose intended, should be adequate for current needs (para. 2.22). During negotiations the Government agreed to continue to allocate necessary funds for routine and periodic maintenance in the 1980-82 budgets and, at the same time, to improve methods of planning and monitoring road maintenance expenditure (paras 2.23 and 2.24). 2.17 Over the past five years the revenues from road user charges have been in the region of US$8 million per year as shown in the following table. Road maintenance expenditure, including the servicing of loans for equipment etc., is now rising towards this figure. Fuel taxes at 120/gallon on gasoline and 100/ gallon on gasoil are low and could be increased without distorting the traffic patterns of the country. An expanding program of road maintenance and improvement is in prospect in Liberia; there are therefore good reasons for suggesting that some of the costs of this expanded road program should be reflected in increases in road user taxation. The Government is currently considering such increases.  - 16 - Revenues from Road User Charges (in US$ '000) Import Duties 2/ Vehicle 3/ Taxes on on Vehicles Licensing and Fuel 1/ & Spare Parts Registration Total 1971 2,057 5,243 781 8,081 1972 1,682 4,906 985 7,573 1973 1,538 5,045 1,684 8,267 1974 1,861 2,027 1,762 5,650 1975 1,923 3,533 1,897 7,353 1976 2,421 3,544 2,256 8,221 1/ The price of gasoline is 921/gallon including 124 tax. The price of gas oil is 88i/gallon including 10 tax. 2/ Import duties on CIF value: passenger vehicles 28%; trucks and buses 23%; tires and spare parts 40%. 3/ License Fees: $10.25 for passenger vehicles to $40.00 for taxis; Registration taxes: $9.25-76.00 for passenger vehicles, $21-113.00 for hire cars and taxis, $145.00-350.00 for trucks. Source: Ministry of Finance, Annual Reports, 1970-76. 2.18 All the signs are for a considerable increase in the building of secondary and feeder roads. The USAID program contains a Rural Road Program III for which US$5.2 million has so far been allocated. A Bank Feeder Road Project is proposed for FY 1979. There are other donors seeking to funnel aid into rural development. G. Engineering 2.19 Liberia is generally an easy country for road builders. Except in the coastal belt, the terrain is rolling with occasional escarpments which present some challenge in road location. The soils are mostly sandy latosols which provide an excellent foundation for roads; there are areas with impeded drainage, producing swamps which can easily be avoided except in the coastal belt. Good road-making materials, lateritic gravels, and rock suitable for quarrying are easily available in most parts of the country. The rivers flow almost entirely over bedrock, so -- apart from in the coastal belt -- bridge foundations present no problems. There is a dearth of hydrological data so that the estimation of peak stream and river flows does present some difficulties. 2.20 MPW does not have its own model specifications and standards for highway geometric design; instead they rely heavily on US specifications. For each major road project, therefore, geometric designs are evolved based largely on US specifications modified by consultants and the MPW. The rolling  - 17 - terrain of the country means that heavy earthworks may be needed to provide suitable alignments, making it necessary to establish appropriate design speeds and geometric standards for each project. The extra cost of such earthworks must be balanced against savings in road user costs, mainly journey times and improved safety. This is being done under the Third Highway Project for the hilly area near Sanniquellie. The feasibility studies will derive design speeds from a comparison of costs and benefits. 2.21 In the absence of model specifications for pavement design and con- struction, the specifications for individual projects have varied and have sometimes not proved entirely satisfactory (para. 2.36). MPW should prepare and issue their own model specifications. Measurement of vehicle and axle loads undertaken during the surveys in the Sanniquellie area could be used to derive pavement design and to define new standards for bridge loading. Bank staff will encourage MPW to work out geometric and pavement specifica- tions which could be adapted to later projects and various local conditions. H. Maintenance 2.22 Over the last two years there have been considerable increases in the annual appropriations for road maintenance (para. 2.15). The current appropriations would be adequate for routine and periodic maintenance with some to spare for restoring earth and gravel roads to a level at which they can be kept in adequate condition by routine maintenance. One objective of the proposed project is to improve the programming and recording of road maintenance thus making it more certain that resources allocated to road maintenance are used for that purpose. 2.23 The consultants engaged to provide technical aid for road mainte- nance under the Second Highway Project have completed an inventory of main and secondary roads, and on each length of road they have established norms for routine and periodic maintenance. District engineers have been provided with machinery and workshop facilities, and operational staff have been trained to maintain and operate the machinery. There is evidence that the condition of some main and secondary roads has improved, indicating that the program is having effect. But the detailed maintenance program planned by the consultants is not yet being fully implemented. One reason is that as yet there are not enough employees with adequate training and experience. Another is that resources provided for road maintenance may be diverted to other uses; it has proved difficult to induce district engineers to provide records of work done and resources employed. One aim in the extension of the consultancy service in the proposed project is to improve the planning and management of road maintenance at district level (para 3.10). 2.24 The financing, planning and the organization of road mainte- nance are undertaken from MPW headquarters in Monrovia. Local government organizations are beginning to emerge in Liberia. Undoubtedly, this trend should be encouraged. One aim, possibly long term, should be to decentralize road maintenance, giving local authorities direct responsibility for maintain- ing local roads in their areas. In the meantime, there is a need to provide district engineers with greater incentive to manage road maintenance more  - 18 - effectively. Currently, a tradition that road maintenance needs heavy equip- ment is becoming established. On more lightly trafficked gravel roads, farm tractors and drags could be used instead of graders for routine maintenance of the surface; more generally the opportunity exists for building up a lengthsman system in which some of the routine work of patching the road surface and repairing potholes, and care of the verges and roadside drains could be done by hand. These aspects will be considered in the extension to the consultant services as part of the proposed project. 2.25 The amount of machinery and the workshop facilities are approaching a reasonable level, and a steady stream of trained plant operators, mechanics and road foremen is beginning to emerge from the consultants' training scheme under the Second Highway Project and the training school at Camp Mechlin. There is, however, a need to include in the consultants' program the training of subprofessionals in the techniques of maintenance, repair and strengthening of bituminous surfaced roads. A provision in the proposed project is included to cover this field (para 3.05). I. Construction 2.26 Unlike many other African countries, Liberia still lacks on adequate network of main roads; the work to improve it to meet the country's needs must remain a first priority in the transport sector. There is also increasing concern to build up the network of secondary and feeder roads. Thus, while work to establish the main roads is likely to be necessary for at least another decade, there is also need to expand the facilities available for constructing secondary roads and feeder roads. A start on meeting this need was made under the Third Highway Project and will be continued under the forthcoming Feeder Roads Project. 2.27 Consultants are employed to undertake feasibility studies, detailed engineering and supervision on main roads, and contractors are used for construc- tion. MPW is seeking to improve its capacity to plan and engineer major con- struction of roads and bridges; there are no domestic consultants as yet in the highway field, and the few domestic contractors are as yet some distance short of having the organization to prequalify for major highway construction. While it will be necessary during the next few years to continue to employ international consultants and contractors, a deliberate effort will be needed to develop local capacity by arranging for both MPW and local contractors to be more involved in the main road improvement program. Domestic contractors find ample opportunities in work on minor roads; there are likely to be increasing opportunities on main roads for subcontracting for the supply of materials and for specific aspects of construction in which they can develop special skills. 2.28 The Bank's main effort in building up the secondary and feeder road system of Liberia will come as part of the proposed Feeder Road Project. Some of this work wiLl be done by the MPW by force account, and some by local con- tractors. The work is not of a nature to tempt international contractors; nor is it desirable that they should be brought in for such work. But there is clearly insufficient local capacity as yet to tackle a program of the size likely to develop.  - 19 - 2.29 A study of the domestic construction industry undertaken by the International Executive Services Corps (IESC) as part of the Second Highway Project was completed in June 1977. Their report contains information useful in developing the domestic highway construction industry. Domestic contrac- tors do not have the competence necessary to undertake major contracts for the construction of main roads. It is a long-term aim that they should, but in the meantime there is likely to be plenty of other work in the htghway field which can provide opportunity to build up a viable domestic contracting industry. Such work includes the construction or reconstruction of secondary and feeder roads, petty contracting or subcontracting for specific functions and haulage contracting for road works. Domestic contracting for the supply of materials was not covered in the IESC study. The current difficulties in providing adequate supplies of crushed rock (para. 2.41) suggest that the quarrying industry should also be included in any aid program for the domes- tic construction industry. 2.30 There are two domestic highway construction contractors employed in building and improving gravel roads as part of the USAID program. They have a fair engineering competence but they need to develop their ability in estimating, work planning, and financial control. 2.31 Technical aid will be necessary both to MPW and to the private sector: to MPW to assist in developing their organization for planning and supervising the work of contractors, and also to the industry through a domestic commercial bank, in organizing their financial affairs. A memo- randum has been prepared containing proposals for technical assistance to MPW and domestic development banks for developing the domestic construction industry and has been agreed upon in principle by the Government, and the required technical assistance is being arranged as part of the Third Highway Project (Loan 1156-LBR). 2.32 A line of credit (US$7.0 million) is available for industrial development (Loan No. 1323-LBR, October 1976), through the Liberian Bank for Development and Investment (LBDI). A proportion of this loan could be made available to provide financial help to domestic contractors. Appropriate Technology for Road Construction and Maintenance 2.33 A study commissioned by USAID in 1974 undertook to determine what technologies were most appropriate in Liberia. The study concluded that there is neither need nor opportunity to encourage labor-intensive road construction. Demand for labor is high in rural areas during the dry season for tilling, planting and harvesting; road construction, like agriculture, cannot proceed in the wet season when surplus labor is available. 2.34 Thus the only motives for pursuing road-building technologies different from those now in use are: (a) that they might be potentially cheaper; and (b) that they might encourage the local population to par- ticipate in an activity important for the economic and social development of their region.  - 20 - The USAID study compared the costs of road construction by intermediate and fully mechanized technologies. They concluded that intermediate technology, employing machines to supplement labor only where necessary on technical grounds, was in all cases more expensive than mechanized technology. It is thus evident that machine-intensive technology is most appropriate for road construction and maintenance in Liberia. Although this conclusion is likely to remain generally valid, there are two important qualifications. First, there is scope for using local resources for building and maintaining feeder roads and tracks; the building of new secondary roads cannot connect all villages and areas of agricultural production, and there is a mounting demand to provide such connections. Tracks -- simple feeder roads negotiable by robust, light vehicles -- are needed and local organizations are demonstrat- ing a will to take part in building such roads. There is an opportunity to nourish this local enthusiasm, with MPW's field divisions providing a minimum of machinery for essential work that cannot be done by hand, and taking care that the responsibility for constructing and maintaining these roads always remains a local responsibility. This aspect will be pursued in more detail in the proposed Feeder Roads Project. Second, there is manual work to do on all highways in the wet season, in maintaining drainage systems in fully operable condition and in emergency repairs to the running surfaces of all types of road. This aspect will be pursued as part of the extension to the maintenance consultancy in the proposed project. J. Environmental Aspects 2.35 No issues have been raised on the proposed project concerning either damage to the environment or conservation of natural resources, nor can any such issues be envisaged unless a concern for road safety can be regarded in this light. Although reliable data are not available it is evident that the toll from road accidents is high and increasing as the length of high-speed main roads is increased. Government agreed during negotiations that the terms of reference of the UNDP transport specialist (para. 1.18) be extended to include advising on means to improve the reliability of road accident data to provide a basis for formulating an effective road safety policy. K. Past Bank Assistance 2.36 The First Highway Project (Loan 368-LBR, US$4.25 million, 1964) began in August 1965 and was completed in June 1969. The project consisted of reconstructing two roads and supplying equipment for road maintenance. The reconstruction of both roads was engineered by MPW; one was constructed by a foreign contractor in consortium with a local firm. One road, Kle-Pujehun (43.7 mi), is in fair condition with increasing amounts of maintenance re- quired. The other, Paynesville-Robertsfield (28 mi), was completed in mid-1969. Pavement failures rapidly became evident, and the road has needed continuous repair to keep it in adequate condition to carry the increasing traffic. The bituminous surfacing employed was pervious, permitting surface water to enter the road base. The road base, made of local lateritic gravel suffered con- siderable loss of strength when it became wet. Sealing of the road surface arrested the rapid development of failure, but much of the road base had been  - 21 - permanently weakened and subsequent rainy seasons have produced further areas of failure needing repair. This experience -- a frequent one in the early days of bituminous road construction in all African countries -- has provided a useful lesson on the care needed in selecting materials and in supervising the construction of such roads. Total project costs were US$7.00 million, including an overrun of 16.4% over the appraisal estimate. The Government met the full cost of the overrun. 2.37 The Second Highway Project (Loan 907/Credit 395-LBR, US$5.6 million, 1973) started in June 1973 and was completed at the beginning of 1978. The project included technical assistance to reorganize and improve highway maintenance and to review the domestic highway construction industry, the purchase of highway maintenance equipment and workshop tools, and the con- struction of the Monrovia Bypass. The project also included the detailed engineering for (i) improvements to U.N. Drive (5.4 mi), to the Totota-Ganta road (83 mi), to the Paynesville-Robertsfield road (28 mi), and to the Pay- nesville-Totota road (71 mi) and to Water Street in Monrovia; and (ii) a new bridge over the Mesurado river in Monrovia. 2.39 Reasonable progress has been made with the technical assistance. The construction of the Monrovia Bypass has been completed with a small cost overrun. The detailed engineering for U.N. Drive, the Mesurado River bridge in Monrovia and the Totota-Ganta road was successfully completed and the works are now under construction as part of the Third Highway Project. The detailed engineering for the Paynesville-Robertsfield and Paynesville-Totota roads was completed in June 1977. The design concepts for the reconstruction of the Paynesville-Totota road were too expensive and the detailed engineering of both roads required some revision to make sure that construction standards were adequate for the expected traffic. One of the main activities in the appraisal of the proposed Fourth Highway Project was revising the concept and methods to be employed in improving these two roads, which are included in the project. 2.40 The Third Highway Project (Loan 1156-LBR, US$27.5 million, 1975) began in August 1975 and is scheduled for completion at the end of 1979. Under this project, UN Drive in Monrovia and the Totota-Ganta road are being reconstructed and the Mesurado river bridge is being constructed in Monrovia. In addition technical assistance was provided for the Programming and Planning Division of MPW: consultant services for (a) feasibility studies on extensions to the main road system from Ganta to Sanniquellie and to Tapeta (about 90 miles in all); (b) detailed engineering of the Mount Coffee Dam Road; and (c) a study of urban development in Monrovia, and assistance to equip and operate a Feeder Road Construction Unit. 2.41 Construction works under the Third Highway Project are being under- taken by foreign contractors with supervision from international consultants. There have been delays on all three project items because of bad weather and difficulties in the supply of materials, particularly crushed stone. The quality of work done is good and, apart from the delays, progress is satis- factory. Technical assistance to the Programming and Planning Unit is  - 22 - proving effective. The feasibility studies are well in hand, as is the urban development study. The detailed engineering of the Mount Coffee Dam road has been deleted from the project because the feasibility study did not show adequate justification for the work. The Feeder Road Unit started working in February 1977 and is operating successfully in Lofa County in association with the agricultural development project.  - 23 - III. THE PROJECT A. Objectives 3.01 There are three broad objectives in the proposed Fourth Highway Project: (a) to continue to develop the main highway system of Liberia; (b) to continue to develop local capacity to plan and execute highway maintenance with increasing emphasis on management; and (c) to develop capacity within Government for highway planning. B. Description 3.02 The proposed project consists of: (a) the improvement of the Paynesville-Totota road (71 miles); (b) the improvement of the Paynesville-Robertsfield road (28 miles); (c) detailed engineering for the Ganta-Sanniquelli road (25 mi) and the Ganta-Tapita road (65 mi); (d) feasibility study for the Gbarnga-Voinjama-Kolahun road (152 mi); (e) consulting services for the organization and execution of road maintenance (continued from the Second Highway Project with extended objectives); and (f) technical assistance to the Planning and Programming Division in the Ministry of Public Works. 3.03 Improvement of the Paynesville-Totota Road. Plans for the improve- ment of this highway, made by the consultant under the Second Highway Project, invoLved complete reconstruction of the pavement over the whole length, together with relocation to improve alignment at bends and over two lengths totalling about ten miles, and strengthening of bridges. The condition of the road suggests that only a portion of the pavement needs complete reconstruc- tion; over most of the length an adequate and less expensive alternative is to strengthen the pavement in stages over a period of years. Arrangements to follow this alternative have been worked out with MPW and are described in paras 3.04 and 3.05. Although the realignments might be judged desirable to bring the layout up to a uniform standard, there is as yet little evidence that they can be justified in the Liberian context by benefits in the form of reduced journey times and improved safety (para. 2.35).  - 24 - 3.04 The studies for strengthening the pavement involve first a deflec- tion survey, and then the preparation of revised estimates and contract docu- ments. The deflection survey completed by consultants Davies and Associates in February 1978 showed that less than 25% of the road needed reconstruction; the remainder can be restored to have a design life of 15 years by local repair and strengthening. Estimates have been revised accordingly. 3.05 The works will be supervised by international consultants and undertaken by international contractors. Both will be required to employ a stated minimum number of Liberian engineers in order to build up the stock of Liberian engineers with experience in the strengthening and maintenance of bituminous roads (para 5.01). 3.06 Improvement of the Paynesville-Robertsfield Road (28 mi). This road connects Monrovia with the main international airport at Robertsfield and the area beyond Robertsfield. Faults in initial construction have required con- tinuous efforts to keep the road in serviceable condition (para. 2.36). The deflection survey has shown that some 70% of the pavement requires reconstruc- tion and that the remainder can be restored by local repair and strengthening to provide a pavement throughout with a design life of 15 years. 3.07 Detailed Engineering. The proposed project provides for the de- tailed engineering of the reconstruction of the Ganta-Sanniquellie road (25 mi) and the Ganta-Tappita road (65 mi). Feasibility studies undertaken as part of the Third Highway Project are well advanced; final reports are ex- pected by mid-1978. Arrangements for the detailed engineering will be re- viewed by the Government and the Bank in the light of the conclusions of these reports. 3.08 Feasibility Study. The proposed project provides for a feasibility study for the improvement of the Gbarnga-Voinjama-Kolahun road (152 mi). This main road connects the developing areas of Lofa County with the main road from Sanniquellie to Monrovia. At present, it follows a ground-hugging alignment and, though surfaced with gravel, is difficult and slow to traverse, particu- larly in wet weather. The rate at which traffic will develop is a key issue in planning the improvement of the road. It is proposed to carry out the feasibility study in two stages: Stage 1. A prefeasibility study to indicate the likely growth of traffic, including that generated by agricultural develop- ment (on the assumption that road user costs are reduced to those appropriate on an improved road) and a prelimi- nary estimate of cost of improving the road to standards appropriate to a main road. Stage 2. A detaLled study of sections of the road selected on the basis of the Stage I study, to refine the predictions of traific growth, to undertake preliminary engineering including cost estimates and to carry out the necessary economic-engineering studies to indicate appropriate standards and appropriate timing for improvement of the selected lengths.  - 25 - 3.09 The Planning and Programming Division of MPW will undertake Stage 1. After Stage 1 is completed, the Government and the Bank will review the find- ings and select the most feasible improvements for detailed feasibility studies by consultants in Stage 2 * Preliminary engineering of these selected sections will be undertaken as part of Stage 2. 3.10 Technical Assistance for Road Maintenance. The project provides for retaining for another three years the consultants who are giving technical aid in planning and executing road maintenance. The consultants have made good progress in training staff in the physical operations of maintaining earth and gravel roads. Progress has been slower in building up expertise within MPW on the planning and organization of road maintenance at the district level and on exercising the necessary financial controls. With this in mind, revised objectives, outlined in Annex 4, have been prepared for the extension of con- sultants' services and agreed upon with the Government. The revised objectives provide for civil engineering assistance (one engineer and four technicians) to cover the preparation and implementation of the road maintenance program, and mechanical engineering assistance (one engineer and four master mechanics) to assist in building and operating the central and field workshops, in operat- ing the road maintenance machinery and in training operators and mechanics. Three of the technicians and three of the master mechanics will be attached to District organizations in the field. In addition, an administrative expert will be attached to the Bureau of Operations in MPW to implement proposals that have been prepared for work programming and control, budgeting and cost accounting, and a warehousing expert will be provided to put into use an effective scheme for the procurement and issue spare parts and equipment in central and field warehouses. These arrangements together with a commitment from MPW to provide suitably qualified counterpart staff were confirmed during negotiations. 3.11 Technical Assistance in Highway Planning. One of the outstanding needs is to develop local capacity in transport planning. The project pro- vides for continued technical aid to MPW in building up the expertise of PPD for highways. Two experts are envisaged, each for two years: one transport economist and one traffic engineer. The latter would continue assistance started under the Third Highway Project. Terms of reference are presented in Annex 2 and were agreed upon at negotiations. Technical training for four Liberian students abroad is also included in the project. C. Project Cost and Financing 3.12 The total cost of the project, net of taxes, is estimated at US$28.79 million of which US$21.21 million are foreign costs. No taxes or duties are levied on projects financed by the Bank in Liberia except for income tax on wages and salaries of local staff. Thus no component for local taxation is shown in the estimates. Project costs are summarized in the table on page 26. These estimates reflect prices as of June 1978 with appropriate allowances for price adjustments and for physical contingencies. Price adjustments have been calculated at 9% for 1978, 8% for 1979, and 7% for subsequent years. Detailed estimates for each component of the project, showing the contingency allowance on each, are given in the table on page 31.  - 26 - Cost Estimates of the Project US$ million at June 1978 prices Foreign as Local 1/ Foreign Total % of Total 1. Civil Works a) Paynesville-Totota road (71 mi) Construction 3.00 7.73 10.73 72 Supervision 0.11 0.64 0.75 86 b) Paynesville-Robertsfield road 2/ (28 mi) Construction 2.20 5.67 7.87 72 Supervision 0.08 0.47 0.55 86 2. Detailed Engineering Ganta-Sanniquellie road (25 mi) and Ganta-Tappita road (65 mi) 0.10 0.38 0.48 80 3. Feasibility Study Gbarnga-Voinjama-Kolahun road (125 mi) 0.08 0.47 0.55 86 4. Road Maintenance Program Consultancy Services 0.76 2.39 3.15 76 5. Technical Assistance to MPW Planning and Programming Division 0.05 0.23 0.28 82 Total excluding contingencies 6.38 17.98 24.36 75 Price adjustments 3/ 0.63 1.74 2.37 Physical contingencies 3/ 0.57 1.49 2.06 Total 7.58 21.21 28.79 74 Totals excluding component financed in parallel by Kuwait Fund Total excluding contingencies 4.10 11.84 15.94 Price adjustments 3/ 0.39 1.09 1.48 Physical contingencies 3/ 0.33 0.86 1.19 4.82 13.79 18.61 74 1/ No taxes are levied under the project. 2/ Parallel financing from Kuwait Fund. 3/ See paras. 3.13 and 3.14.  - 27 - 3.13 The costs of the civil works on the Paynesville-Totota road and the Paynesville-Robertsfield road have been derived from revised estimates prepared by the consultant after completion of the deflection survey. The costs are considerably influenced by the unit price of crushed stone which has increased considerably during the last two years. Because of this the Bank has requested and the Government has agreed that in the contract docu- ments cement-stabilized gravel be included as an alternative to crushed stone as road base. 3.14 The cost of construction supervision was estimated in detail and amounts to about 7% of construction costs. The cost of road preinvestment studies is based on the cost of similar services rendered in Liberia. Esti- mates for the road maintenance program are derived from the revised program prepared by consultants Sauti and agreed by the Government and the Bank (Annex 4). The program involves 420 man-months for the consultants' staff, at a cost of US$7,500 per man-month. There are no cost-of-living allow- ances. Estimates for technical assistance to MPW have been estimated on a man-month basis using similar rates. 3.15 The Kuwait Fund has agreed to provide parallel financing for the foreign costs of the improvement of the Paynesville-Robertsfield road; this foreign cost is estimated at US$7.4 million and includes the cost of road safety devices and of construction supervision. Negotiations between the Government and the Kuwait Fund are scheduled for mid-May 1978. The remaining foreign costs of US$13.8 million would be financed by the Bank. The Govern- ment will meet all local costs of the project. Retroactive financing by the Bank to a maximum of US$0.2 million is provided in order to ensure continuity in the consultancy services for road maintenance after July 1, 1978. D. Implementation 3.16 MPW will be responsible for execution of the proposed project. MPW will be assisted by consultants in planning and supervising the construc- tion works, detailed engineering and technical assistance for highway mainte- nance. The project will take four years to complete, from July 1, 1978 to June 30, 1982. The timing of the various activities in the project is as shown in below:  - 28 - TDEING 0F COWOUNT ACTIVITIES 1978 1979 1980 En81 1982 CIVIL W'ORKS a) Paynesville-Totota Rd. _ _ _ _ _ b) Paynesville-Robertsfield Rd. __ _____ -___ DETAILED ENGINEERING Ganta-Sanniquellie and Ganta-Tappita Roads _ FEASIBILITY STUDY Cbarnga-Voinj ama-Kolahun Rd. ROAD MAINTENANCE Consultancy Services _ _ TECHNICAL ASSISTANCE to )WW Planning and Progranming Division _ 3.17 The Government wishes to start work as soon as possible on the Paynesville-Robertsfield road, and they have prepared a short list of con- tractors previously prequalified for other roads. If the Kuwait Fund accepts bids being calle!d from the short-listed contractors, work could start at the beginning of the 1978-1979 dry season. E. Procurement 3.18 The improvement of the Paynesville-Totota road would be undertaken by contract awarded after international competitive bidding in accordance with the Bank Group Guidelines for Procurement. Prospective bidders would have to be prequalified. Bidding documents would include an appropriate price adjust- ment clause. The works would be supervised by consultants on terms acceptable to the Bank. 3.19 The improvement of the Paynesville-Robertsfield would be carried out by a contractor and works supervision would be undertaken by consultants on terms acceptable to the Kuwait Fund. 3.20 The detailed engineering and the feasibility study would be under- taken by consultants who would be appointed by MPW following Bank Group Guidelines for the use of consultants. The Government has proposed that consultants Sauti be invited to continue their work for road maintenance begun under the Second Highway Project. This arrangement is satisfactory to the Bank. Technical assistance to MPW, would be provided by qualified and experienced consultants following procedures, and on terms, acceptable to the Bank. F. Disbursements 3.21 All project components except the improvement of the Paynesville- Robertsfield road will be financed by the Bank Loan; disbursements will be distributed as follows:  - 29 (i) 72% of total costs of civil works on the improvement of the Paynesville-Totota road (i.e. 100% of the estimated foreign costs); (ii) 100% of foreign expenditure on supervision of the civil works on the improvement of the Paynesville-Totota road (86% of total costs); (iii) 100% of foreign expenditure on detailed engineering of the Ganta-Sanniquellie and Ganta-Tappita roads (80% of total costs); (iv) 100% of foreign expenditure on the feasibility study of the Gbargna-Voinjama-Kolahun road (86% of total costs); (v) 100% of foreign expenditure on consultancy services for the road maintenance program (76% of total costs); and (vi) 100% of foreign expenditure for the technical assistance to MPW (82% of total costs). A schedule of disbursements is given on the next page.  - 30 - Estimated Schedule of Disbursements IBRD Fiscal Year Cumulative Disbursements and Quarter Ending at End of period (US$ '000) 1979 September 30, 1978 400 December 31, 1978 1,000 March 31, 1979 2,000 June 30, 1979 2,600 1980 September 30, 1979 3,900 December 31, 1979 5,100 March 31, 1980 6,400 June 30, 1980 7,700 1981 September 30, 1980 9,000 December 31, 1980 10,200 March 31, 1981 11,000 June 30, 1981 11,800 1982 September 30, 1981 12,400 December 31, 1981 13,000 March 31, 1982 13,400 June 30, 1982 13,800  CHAPTER 3 Table 1 LIBERIA FOURTH HIGHWAY PROJECT Cost Estimates (US$ million as at June 30, 1978) Local Foreign Total Foreign as % of Total CIVIL WORKS 1. Improvements to Paynesville-Totota road 3.77 10.11 13.88 Construction works (total) 3.65 9.40 13.05 Construction 3.00 7.73 10.73 72 Price contingencies (10.5%) 0.32 0.81 1.13 Physical contingencies (10%) 0.33 0.86 1.19 Construction supervision (total) 0.12 0.71 0.83 86 Consultancy services 0.11 o.64 0.75 Price contingencies (10.5%) 0.01 0.07 0.08 2. Improvements to Paynesville-Robertsfield road 2.76 7.42 10.18 Construction works (total) .67 6.90 9.57 72 Construction 2.20 5.67 7.87 Price contingencies (10.5%) 0.23 o.60 0.83 Physical contingencies (10%) 0.24 0.63 0.87 Construction supervision (total) .0.52 o.61 86 Consultancy services 0.08 0.47 0.55 Price contingencies (10.5%) 0.01 0.05 0.06 DETAILED ENGINEERING 3. Ganta-Sanniquellie and Ganc&