Cameroon - Fourth Highway Project

Document of The World Bank FOR OFFICIAL USE ONLY FILE COPY Report No. P-2458-CM REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT AND LOAN TO THE UNITED REPUBLIC OF CAMEROON FOR A FOURTH HIGHWAY PROJECT May 22, 1979 This document has a restricted distribution nd may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = CFA Franc (CFAF) US$1 = CFAF 220 /1 CFAF 1 million = US$4,545 /1 Floating exchange rate. FISCAL YEAR July 1 - June 30 ACRONYMS CAMAIR: Cameroon Airlines DH: Department of Highways DHM: Division of Highway Maintenance IGERA: General State Inspectorate MINEH: Ministry of Equipment and Housing MINEP: Ministry of Economic Affairs and Planning MOT: Ministry of Transport NCEEP: National Civil Engineering Equipment Pool REGIFERCAM: Regie Nationale des Chemins de Fer du Cameroon RPU: Road Planning Unit SMDCWC: Small- and Medium-Scale Domestic Civil Works Contractors TPB: Training Production Brigade TPCU: Transport Planning and Coordination Unit  CAMEROON FOR OFFICIAL USE ONLY FOURTH HIGHWAY PROJECT LOAN AND CREDIT AND PROJECT SUMMARY Borrower: United Republic of Cameroon Amount: US$10 million IDA Credit US$38 million IBRD Loan Terms: Credit: Standard Loan: 20 years including 5 years of grace at annual interest rate of 7.9 percent. Project Description: The proposed project is designed mainly to improve the Government's capacity to maintain roads; other objectives are to promote small- and medium-scale domestic contractors, control vehicle loads and improve road planning. The project would consist of the following main components: (i) a three-year training program for maintenance staff of the Department of Highways and the National Civil Engineering Equipment Pool; (ii) a four-year program for the maintenance of about 16,900 km of roads, and the rehabilitation of about 1,350 km of unpaved roads, by force account; (iii) rehabilitation of about 340 km of unpaved roads by domestic contractors with technical assistance; (iv) provision of two weighing stations; (v) setting up and staffing of a Road Planning Unit in the Department of Highways; and, (vi) road preinvestment studies. The benefits for Cameroon would mainly consist of savings in vehicle operating costs which would initially accrue to road users and subsequently be passed on to producers and consumers as avoided tariff increases. The project would also stimulate agricultural development since the access roads to be rehabilitated will complement feeder roads under construction integrated with agricultural develop- ment projects. The possible risks associated with the large scale of the proposed piogram have been kept to a minimum by phasing the project in line with the perceived absorptive capacity of the agencies involved. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Estimated Costs Foreign US$'000 as x Foreign Taxes Local Total of Total A. Training 1,376 268 343 1,987 69 B. Road maintenance and rehabilitation 1/ 24,773 10,281 8,189 43,243 58 C. Weighing stations 1,006 262 342 1,610 63 D. Promotion of domestic contractors 3,785 1,014 2,119 6,918 54 E. Road planning 243 42 71 356 68 F. Preinvestment studies 2,556 472 905 3,933 65 Total base cost 33,739 12,339 11,969 58,047 58 Physical contingencies 1,760 748 277 2,785 63 Price contingencies 12,639 4,834 4,814 22,287 57 Total 48,138 17,921 17,060 83,119 58 Rounded 48,000 18,000 17,000 83,000 58 Financing Plan: US$'000 Foreign Local Total IBRD/IDA 48,000 - 48,000 Government (including taxes) - 35,000 35,000 Total 48,000 35,000 83,000 Estimated Disbursements: US$'000 Fiscal Year 1980 1981 1982 1983 1984 1985 1986 Annual 1,200 2,000 6,800 14,000 14,000 7,500 2,500 Cumulative 1,200 3,200 10,000 24,000 38,000 45,500 48,000 Economic Rate of Return: 82 percent on 80 percent of project costs for which benefits have been quantified. Staff Appraisal Report: Report No. 2225-CM dated May 18, 1979. Map: IBRD 13733R 1/ Capital costs only; recurrent costs to be provided by Government.  INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN AND CREDIT TO THE UNITED REPUBLIC OF CAMEROON FOR A FOURTH HIGHWAY PROJECT 1. I submit the following report and recommendation on a proposed loan for the equivalent of US$38 million and a development credit for the equivalent of US$10 million to the United Republic of Cameroon to help finance a Fourth Highway Project. The loan would have a term of 20 years, including 5 years of grace, with interest at 7.9 percent per annum; the development credit would be on standard IDA terms. The grant element corresponding to this Bank/IDA blend would be 17.2 percent. PART I - THE ECONOMY 2. A report entitled "United Republic of Cameroon Economic Memorandum" (No. 1798-CM), was distributed to the Executive Directors on April 5, 1978. Annex I provides basic country data. Economic Potential 3. Cameroon has a population of about 7.8 million (1977) and covers an area of 475,000 km2. The country's natural resources are considerable and varied, but not always easily accessible. Soils and climatic conditions per- mit cultivation of a wide range of crops, and the forest areas of the south- east contain large untapped timber resources. The north holds promising potential for livestock development. The main opportunities for development in Cameroon lie in the expansion of agricultural production, including for- estry, and the processing of agricultural and forestry products for export. Offshore oil and gas exploration has yielded modest results. Trade, trans- portation and transit services are other important economic activities. Cameroon's main economic centers are separated by vast underpopulated areas; furthermore, the country's transport facilities also serve landlocked Chad. As a result, a large port and adequate inland transport infrastructure are essential for promoting agriculture, forestry and industry, and strengthening Cameroon's role as a regional trade center. Past Performance 4. During the Second Plan period (1966-71), GDP increased at a high rate of 7.6 percent per annum. However, during the Third Plan period (1971- 76), output grew at only 2.5 percent per annum for a number of reasons: (i) the drought which affected the north of Cameroon in 1972 and 1973; (ii) the impact of world-wide recession and unfavorable terms of trade; (iii) serious difficulties in maintaining and expanding Cameroon's main tree crops,  - 2 - compounded by the failure of producer prices to keep up with those of compet- ing food cash crops and inputs; and (iv) the limited size, early saturation, and slow expansion of the domestic market for import substituting manufac- tures. The terms of trade improved during 1966-71 but deteriorated during 1971-76. As a result, gross domestic income increased faster than GDP, at 8.3 percent per annum during 1966-71, but grew by only 2.4 percent per annum during 1971-76. Population growth is estimated at about 1.8 percent per annum in the 1960s, about 1.9 percent until the mid 1970s and about 2.3 percent from 1975-80. Per capita GNP reached about US$340 in 1977. 5. During the 1960s, a confluence of a number of favorable factors led to the high growth of output and income. Agriculture, accounting for about one-third of GDP, increased at a rate of 5.5 percent per annum during 1966-71. Except for cotton, rubber, millet/sorghum, most agricultural crops, livestock, fishing and forestry experienced high growth rates thanks to favorable supply and demand conditions such as high producer prices, high domestic income growth, and rapid economic expansion abroad. For example, in the 1960s although Cameroon already faced the problem of the increasing age of its cocoa and coffee trees, supply was still able to increase reflecting the high level of new planting during the 1950s and early 1960s. In addition, the Government was able to maintain adequate cocoa producer prices even when export prices dropped because of the reserves built up earlier in the cocoa stabilization fund. Manufacturing and mining, accounting for 11 percent of GDP, increased at 12 percent per annum during 1966-71 due mainly to the rapid development of import substitution industries, particularly manufactured consumer goods, facilitated by the high rate of domestic income growth and the availability of foreign exchange for the purchase of inputs and intermediate goods. The high rate of agricultural and industrial expansion was accompanied by the rapid growth of construction activities, public administration and other services. 6. In contrast, during the Third Plan period, a number of external and internal factors led to a much reduced growth in output and income. Agricul- tural growth declined to only 3.6 percent per annum, influenced particularly by commercial crops (1.3 percent per annum, or less than one-tenth of the preceding rate), while on the other hand, production of the staple food crops expanded at about 6 percent per annum reflecting increasing demand and high prices for such crops in urban areas. Growth in commercial forestry produc- tion declined sharply due to reduced Western European demand, lower domestic construction activities, and some transportation bottlenecks, while the drought cut growth in livestock production (mainly cattle in the north) from 7.2 percent to 3.3 percent per annum. Cocoa and arabica coffee, accounting for about 55 percent of commercial crops, actually decreased in production, mainly because of the failure of cocoa and coffee producer prices to keep up with those of competing food cash crops, the termination of the foreign supported fertilizer subsidy program for arabica coffee, the increasing age of cocoa and coffee trees, unfavorable climatic conditions in some years, and inadequate Government services to counter the black pod disease of the cocoa trees. The record for the other main commercial crops was much better. The declining trend in cotton experienced in the earlier Plan period was reversed  in large part through the efforts of SODECOTON, a specialized public enter- prise; reversal from decline to growth in rubber and an acceleration in growth of oil palm were facilitated by two plantation projects assisted by the World Bank Group and other co-donors. Growth in manufacturing slowed, following the first wave of import substitution. With rising costs and expanded claims on available public revenues, real growth in public administration was also reduced below the 1966-71 rate. Construction actually declined during 1971-76 and with a deceleration in exports, near stagnation in imports and the low growth in real income throughout the economy, other services (mainly trade and transport) increased only at one percent per annum. Investment and Savings 7. During the Second Plan period (1966-71), the investment rate, in- cluding increases in stocks, exceeded 16 percent of GDP, and gross domestic savings and gross national savings were respectively 13.4 and 12.6 percent of GDP. Foreign resources financed about 33 percent of investment during this period. During the Third Plan period, despite slow income growth, the investment rate increased to 18.1 percent of GDP, as the share of public investment increased to almost 70 percent of total fixed investment. Gross domestic savings and gross national savings rose to 16.4 and 13.9 percent of GDP, but debt service increased by 60 percent from a small base. External resources therefore continued to finance about one-third of total investment during this period. This substantial improvement in savings during 1971-76 was due to a drastic reduction in the real growth of consumption, particularly private consumption, to less than 2 percent per annum during 1966-71. One of the prices paid for the substantial improvement in savings was, however, a limitation on farmer's earnings in tree crops, which provided inadequate incentives to induce farmers to obtain more output from the existing trees and to do sufficient treatment and new plantings to maintain and expand production capacity. The maintenance of a high investment rate during a period of low output growth resulted in an apparent reduction in efficiency of investment. Some reduction in capital productivity was also attributable to investments, such as oil exploration and transport infrastructure, which would lead to production increases only a number of years later, and social infrastructure investments which would increase welfare more rapidly than output. During this period there was considerable progress in the development of high level human manpower. For example, the number of physicians increased by more than 50 percent (decreasing the population per physician rate to about 20,000), dentists more than doubled and pharmacists increased by more than five times. Public Finance and Balance of Payments 8. Budgetary revenue was respectively 16.6 and 17.2 percent of GDP during 1966-71 and 1971-76, while public savings after debt service as a percentage of total public investment declined from about 39 percent in 1966-71 to about 36 percent in 1971-76. The balance of payments did not become a problem until 1974-76. Imports increased rapidly in 1975 and 1976 as a result of world-wide inflation and heavy public development expenditure, especially in capital goods. At the same time, agricultural exports declined,  - 4 - particularly exports of cocoa and timber, causing sizeable current account deficits. The bulk of the current account deficits was financed by net capital inflows but a substantial drawdown of international reserves also took place in 1975. Therefore, net official international reserves decreased from more than two months in 1974 to less than one month of imports in 1975. In 1977, exports recovered substantially (by 35 percent) but imports also in- creased (by 28.5 percent) because of economic recovery and expanded invest- ment. Gross official international reserves were rebuilt in 1976 and 1977, in part by the use of IMF credit (Oil Facilities and Compensatory Financing), but net official international reserves continued to be less than one month of imports in 1977. This was a low level by international standards but still acceptable considering Cameroon's membership in the Central African Mlonetary Union. Development Issues and Prospects 9. Cameroon's main medium- and long-term potential lies in the devel- opment, through both industrial plantations and smallholders, of a diversi- fied agricultural sector, comprising export crops and domestic food crops to feed the growing urban population and replace imports, particularly of grains. Implementation of such a strategy depends on an appropriate mix of public intervention and support as well as price and policy measures to stimulate private initiative; net financial returns to the public sector are more difficult to capture than in a less diversified foreign trade-oriented strategy. Factors which further complicate the agricultural development effort in Cameroon are the extensive dispersion of its main economic and population centers separated by vast underpopulated areas, its regional and institutional diversity, the competition between export and cash food crops for the dwindling agricultural labor in some parts of the country, the dependence of a substantial part of public revenue and savings on cocoa and coffee, and the limited availability of skilled agricultural agents and administrators. Through its technical assistance and education projects and through its normal project work, the World Bank Group is supporting Cameroon' s effort in manpower training and development in the public services in agri- culture, as well as other sectors. In industry the Government has moved to channel more financial resources for investment directly through the public sector, in addition to the indirect support provided by tax incentive and other measures, which have been in existence for many years. The Government has actively participated in a World Bank Group study of the manufacturing sector whose results will help to identify bottlenecks and opportunities to develop existing as well as new industrial activities. 10. In the medium-term, GDP growth is projected to accelerate substan- tially because of the expected recovery and expansion in various agricultural products (including forestry), spurred by relatively high international commodity prices, increases in manufacturing and mining production and rapid growth in construction activities and services resulting from expanded invest- ment activities and rapid income growth. The outlook for considerable agri- cultural growth during 1976-81 is based on: the maintenance of cocoa output at near the previous peak level for a number of years; recovery for robusta  - 5 - coffee, continuing expansion for arabica coffee, cotton, rubber, oil palm and most other commercial and food crops, as also for livestock production; and continuing recovery, followed by further expansion, of commercial forestry production. This projection is also based on assessment of the medium-term demand outlook for Cameroon's exports, projects under implementation, and certain policy alternatives. Continuing growth of manufacturing production from existing and expanded facilities (particularly in food, beverages and construction materials) and new manufacturing output of sugar, paper pulp and other products, as well as crude oil and new mining, are projected to result in a marked improvement in manufacturing and mining growth during 1976-81. With the expansion in the productive and investment activities, construction and services are also expected to increase at a high rate. 11. Long-term growth is expected to be somewhat constrained by the worsening terms of trade, which will make it difficult to sustain the high investment rate that is expected to prevail during the 1976-81 period, and by the need for prudent debt management to ensure the country's long-term borrow- ing capacity. Growth prospects will be importantly influenced by the extent to which Cameroon succeeds in the difficult task of maintaining and expanding the country's main traditional export crops, and the large-scale development of still unexploited forestry resources. Results of studies on the forestry potential, forestry sector development policy, investment plans and transport requirements, many of which are part of World Bank Group projects, will support the latter development. In addition, there are still uncertain indications for the exploitation of iron ore, but with heavy investment requirements, and long lead times to establish commercially viable export operations, production could probably not begin until the end of the 1980s. Fourth Development Plan (1976-81) 12. Cameroon is implementing its Fourth Economic and Social Development Plan. Private investment is encouraged, under Government guidelines, to expand production capacity in agriculture, forestry, mining and manufacturing. A part of financing of private investment activities, however, will be publicly guaranteed borrowing. The Plan investment program of some US$3.1 billion (in 1974/75 prices) is about 80 percent higher in real terms than the estimated level achieved during the last Plan period and almost triple previous Plan expenditure in nominal terms. Public investment is expected to account for 73 percent of total investment. However, public investment will probably be reduced by 10-20 percent from planned levels for several reasons including: (a) the high dependence of public revenue and savings on cocoa and coffee prices, which are expected to decline substantially in the last three years of the Fourth Plan (1979-81) from their record levels in the past; (b) the need for adequate producer prices to give farmers sufficient incentives for production and new plantings; (c) the rise in import prices, which is expected to continue; and (d) the requirement to keep supplementary borrowing on commercial terms at prudent levels to maintain Cameroon's long-term capacity to borrow. The investment rate during the Fourth Plan period would then be about 22 percent of GDP, and total investment in current prices would be US$3.4-3.7 billion or about US$690-740 million per year.  -6- Financial Prospects and Creditworthiness 13. In the first two years of the Fourth Plan period (July 1976 - June 1978), thanks to favorable terms of trade, public savings after debt service could finance about 65 percent of total public investment. However, in the last three years (July 1978 - June 1981), public savings after debt service are projected to finance only about 30 percent of total public investment and this share of domestic public financing is likely to continue in the longer run. Cameroon will thus have to rely increasingly on external financing for the bulk of its public investment, and foreign official lenders should finance a high proportion of total project costs of externally financed projects, including local costs in appropriate cases. An increasing reliance on foreign borrowing during a period of deteriorating terms of trade will require careful external debt management. In this connection partial data shows that borrowing on commercial terms increased significantly in the last year and a half, although the debt situation cannot be adequately assessed until Cameroon completes the current effort to bring its reporting up to date. Nevertheless, Cameroon is judged to be creditworthy for Bank financing over the medium-term on the basis of its ability to maintain and improve product- ivity in the utilization of the country's resources and its potential in the long-term to further diversify the economy by developing still unexploited resources. In order to keep debt service within reasonable limits, foreign public donors should provide at least 50 percent of public capital assistance on concessionary terms. On this basis, the foreign debt service ratio, 8.6 percent of export earnings in 1977 should be able to be maintained below 15 percent by the mid-1980s. PART II - BANK GROUP OPERATIONS IN CAMEROON 14. The Bank Group's commitments in Cameroon now amount to US$380 mil- lion and cover 29 projects: fourteen in agriculture, nine in transportation, three in education, one in public utilities, one small- and medium-scale enterprise project, and one technical assistance project. Agriculture rep- resents the largest share (44 percent) of our past commitments followed by transport (43 percent). Annex II contains a summary statement of Bank loans and IDA credits as of April 30, 1979, and includes notes on ongoing projects. Although delays and setbacks have been occasionally encountered in the execution of projects, the Government has consistently shown willingness to collaborate with the Bank in finding solutions to such problems. 15. For the future, the Bank Group's strategy is to support the Gov- ernment in its effort to increase agricultural production, including export- oriented crops, and in the process create productive employment in rural areas; upgrade and improve the operation and maintenance of the country's infrastructure; stimulate investment by local entrepreneurs and increase employment in urban areas; and enhance the efficiency of Cameroon's institutions. 16. The Government rightly attaches priority to the balanced regional development of agricultural resources, and to the improvement of conditions  - 7 - in the rural sector parallel with promotion of plantation agriculture, includ- ing smallholder schemes. Bank Group assistance to Cameroon in agriculture is designed to support these policy objectives. We have helped the Government create an effective and well-managed plantation sector by financing oil palm and rubber plantations in the south and west. The 1975 rubber project is almost completed and we are now preparing a follow-up project to aid further the development of the southwest coastal region. The second SOCAPALM and CA2IDEV projects are follow-up operations to successful oil palm projects in the western coastal regions. At the same time, we have assisted, with both SEN4RY projects, in promoting smallholder rice irrigation in the north. The ongoing cocoa project is helping to modernize smallholder cocoa growing and to raise rural productivity in areas south and west of Yaounde. Rural development projects in populated but poor regions are being established with the assis- tance of the Bank. The Plaine des M'Bo Rural Development Project is financing studies and trial activities to establish whether a full-scale rural develop- ment program can be launched. The ZAPI-East Integrated Rural Development Project would support ZAPI's ongoing integrated rural development activities as well as an expansion of ZAPI's activities in eastern Cameroon. The Western Highlands Rural Development Project provides a package of inputs, techniques and infrastructure aimed at improving agricultural productivity in the western part of the country. The Rural Development Fund Project is designed to help the Government establish the machinery for processing and implementing small-scale rural development schemes - initially in the north. An objective of a rural development project that we are proposing for the northern region will be to establish planning and coordination capabilities at the provincial level as well as crop diversification, reforestation, small- scale irrigation and rural water supply. The Government's objectiLves in its rural development policies are to improve income distribution, to achieve a better balance in regional development and to promote essential foodstuff production. The Bank Group intends to increase lending for agriculture to support these efforts. As a corollary, we are preparing the second phase of our livestock development program which began in 1974 and will comprise further ranch development, tse-tse eradication, training and a credit scheme for traditional producers. 17. Recognizing the crucial importance of transportation to economic growth in Cameroon and in neighboring countries, the Government has devoted the largest portion of public investment to this sector. The Bank Group, together with other development institutions, has substantially aided develop- ment of adequate transport facilities. The First and Second Highway Projects were designed to help complete the country's basic trunk road system. The latter project encountered severe cost overruns which were partly alleviated by a Supplementary Credit approved in March 1976 as well as by the elimination of the reconstruction of the Garoua-Figuil section from the project. This section is being financed under the Third Highway Project. The Second Railway Project of 1974 has focused on track improvement and expansion of the equip- ment needed to maintain and augment the railway's overall carrying capacity. Given projected traffic increases, and the backlog of required investments, substantial capital outlays are still necessary particularly for the expansion of the Port of Douala, which is being assisted by a Bank loan and IDA credit, and for some related facilities such as a railway station and marshalling yard to be built outside the port area. An engineering loan, approved in May 1976,  - 8 - helped complete the engineering of this station and marshalling yard. Nego- tiations of a Fourth Railway Project aimed at the construction of this marshal- ling yard have been completed and the project is scheduled to be presented to the Board shortly. A study of the improvements required in the Douala- Yaounde transport corridor which was financed under a Bank project showed that a package comprising a realignment of the Douala-Edea section of the railroad and the construction of a two-lane road between Douala and Yaounde would be economically justified. The study also showed that, at present, a realignment of the railroad sections between Edea and Malloume was not justified. A group of donors (KfW, FED, FAC, CIDA, USAID and CCCE) has agreed to finance realign- ment of the Douala-Edea section and work has started. Concerning the road, we have concluded discussions with the Government who has agreed on the construc- tion of a two-lane heavy duty road instead of the expressway it was consider- ing at first. Regarding the Edea-Malloume section, discussions are being held with the Government and REGIFERCAM concerning a study of alternative solutions to complete realignment prior to taking any financial commitment. 18. Future road investments should place greater emphasis on road maintenance and on developing the network of feeder and farm access roads. Our operations in the road sector have been planned accordingly. The Feeder Roads Project approved in November 1977 will establish institutions for feeder road administration and maintenance in addition to providing the necessary resources for a feeder road program to support high priority agricultural/ rural development projects. The project proposed in this report will concen- trate on road maintenance and rehabilitation of unpaved roads. In other sectors, the Small- and Medium-Scale Enterprise Project, approved in 1975, focuses mainly on developing local entrepreneurship and a second project is in preparation. A Third Education Project, approved in April 1976, places special emphasis on rural education and training. 19. In all our projects we include, as needed, training, technical assistance, and other provisions necessary for strengthening institutions and improving sector policies. The Technical Assistance Project approved in June 1977 is helping to strengthen Government services in several key Ministries involved in investment planning, policy analysis and project processing. To help achieve the Government's priorities and to support our future lending strategy will require continuing emphasis on strengthening the institutional framework, particularly concerning sector planning and project preparation and implementation in transportation, rural and urban development. 20. During the second half of the sixties, overall disbursements to Cameroon amounted to about US$40-45 million a year. While at the beginning of this period 65 percent of aid funds were grants, the proportion of loans slowly increased. A major part of external assistance was provided by France and was concentrated in infrastructure and productive sectors. The European Development Fund and European Investment Bank directed their lending mainly to agriculture, with infrastructure in second place. Bank and IDA disburse- ments were small during this period. From 1972 to 1976 overall disbursements of foreign aid increased to about US$90 million per year with one-fifth as grants. The Bank and IDA's share of these inflows amounted to about 23  percent. Our lending to Cameroon has been closely coordinated with other donors; in 13 of our 29 projects, joint or parallel co-financing arrangements have been made and we are actively seeking co-financing for several future projects. 21. Public debt outstanding and disbursed as of December 31, 1976, amounted to US$529.3 million and is projected to reach US$2.1 billion in 1983. Public debt service as a proportion of export earnings amounted to 5.9 per- cent in 1976 and is projected to reach 12.4 percent in 1983. At that time annual foreign aid disbursements may be over US$400 million with only 7 per- cent consisting of grants. At end-1976 IBRD loans accounted for 10.9 percent of Cameroon's public debt outstanding and disbursed, and 11.4 percent of its public debt service. IDA credits accounted for 12.8 percent of public debt outstanding and 1.1 percent of public debt service. The Bank and IDA are expected to account for about 22 percent of total public debt and 13 percent of public debt service in 1983. 22. In October 1974, Cameroon became IFC's 100th member. IFC's first operation in Cameroon, a US$450,000 underwriting to bring domestic share- holders into a previously wholly foreign-owned shoe manufacturing company, was approved in May 1975. In September 1976, the IFC Board approved an equity investment of nearly US$900,000 in a foreign-owned rubber estate (SAFACAM). The investment will assist in the rehabilitation and diversification of an existing estate that will produce rubber for export and palm oil for the domestic market. The operation will also facilitate participation of domestic shareholders in the estate. In November 1977, the Board approved a third operation, an investment of up to US$125,000 in the share capital of a pro- motional company for maize development. No commitment has yet been made on this investment since the original technical partner has been replaced and major changes have been made in the arrangements expected earlier. The Board approved a second equity investment of US$390,000 in SAFACAM in September 1978. The increased capitalization is required to finance the construction of a palm oil pressing mill. Cameroonian participation again increased with this operation. The Societe Nationale d'Investissement, a national development bank, is doubling its share in SAFACAM. In April 1979, the Board approved an investment of US$7.86 million consisting of US$7 million in loan and US$0.86 million equivalent in equity in a Cameroonian aluminium producing company, ALUCA14. The purpose of this investment is to help expand the company's pro- duction capacity by conversion of the company's existing Sodeberg cells to prebaked anode cells and installation of additional prebaked anode cells. PART III - THE TRANSPORT SECTOR General 23. The transport infrastructure in Cameroon comprises 59,000 km of roads, 1,153 km of railway, one principal port at Douala, two minor ports at Victoria and Kribi and one seasonal river port at Garoua. Air transport is served by one international airport at Douala and 13 domestic airports. The transport system is export/import oriented and revolves mainly around Douala, the principal economic center of the country (Map 13733).  - 10 - 24. All imports and most exports use the port of Douala and flow principally along the Douala-Bafoussam-Foumban axis and the Transcameroon rail/road route linking Douala to north Cameroon and Chad. Cotton bales from north Cameroon are transported more than 1,500 km by road and rail for exports through the port of Douala. Cocoa and coffee from the western high- lands and central mountains areas are carried by trucks or by railway about 200-300 km to Douala. Palm oil, rubber and tropical fruits are produced in the coastal area and require only a short transport haul to be exported. In 1977, log exports amounted to 497,000 tons of which 67 percent went through Douala and 33 percent through Kribi. The average rail distance for log exports through Douala is 375 km. Further expansion of log exports depends on road improvements in the main forest belt which stretches from the Atlantic coast to the eastern frontier and covers 37 percent of Cameroon's area. 25. The railways, comprising mainly the Transcameroon line (Douala- Yaounde-Ngaoundere, 913 km) and the secondary western line (Douala-Nkongsamba, 160 km), are operated by Regie Nationale des Chemins de Fer du Cameroun (REGIFERCAM), an autonomous state agency. With growing traffic and recent tariff increases, REGIFERCAM's financial performance has improved slightly. With the assistance of the Bank and other external donors, REGIFERCAM is taking steps to upgrade its infrastructure and solve its operational and managerial problems. 26. The principal port, Douala, handles 90 percent of Cameroon's foreign and transit trade, with a throughput of 2.5 million tons. The lighterage port of Kribi mainly handles log exports (about 164,000 tons). The ports of Victoria and Garoua have only marginal traffic. All port operations are under the responsibility of an autonomous state-owned company, the Cameroon National Port Authority. The Port Authority is financially self supporting. The Bank is currently helping finance the expansion of the port of Douala. 27. Cameroon Airlines (CAMAIR) provides domestic services between Douala, Yaounde and 12 other domestic airports, and international services between Douala, West and East Africa, and Europe. Transport Planning 28. The Ministry of Economic Affairs and Planning (MINEP), the Ministry of Transport (MOT) and the Ministry of Equipment and Housing (MINEH) all con- tribute in some degree to the planning of investments in the transport sector. However, their limited staff is inadequate for making the more sophisticated investment choices in the offing. Establishing transport priorities and strengthening the planning effort is, therefore, a necessity. With the assistance of the Bank, the Government has started to make a headway in this regard. A Transport Planning and Coordination Unit (TPCU) has been created within the Ministry of Transport and two economists are being recruited for three years each under the Technical Assistance Project. One economist will be seconded to the Ministry of Economic Affairs and Planning to help ensure coordination and integration of investment decisions in transport with closely related sectors such as agriculture and forestry. The other economist has  - 11 - been seconded to the Ministry of Transport to stimulate and coordinate the work of the Transport Planning and Coordination Unit. An expatriate transport economist, provided for two years under the Second Highway Project, is assisting the Department of Highways (DH) in establishing basic principles of road planning. As a next step the Government will set up and staff a Road Planning Unit (RPU) within DH to help plan major road investments under the Fourth Development Plan and assist in selecting roads to be rehabil:itated under the proposed project (see para. 46). The Third Highway Project provides the Transport Planning and Coordination Unit with another economist/ statisti- cian for three years and four fellowships. Furthermore, at Government request, the Bank has agreed to advise on the carrying out of an overall transport sector study. The study would be undertaken by Cameroonian profes- sionals and expatriate experts financed under ongoing transport projects, with Bank staff providing technical assistance during field missions. 29. The Fourth Development Plan aims at a transport investment of about US$800 million (in 1976 constant prices) or 24 percent of the public investment target. Compared to the actual transport investment during the Third Development Plan, the current investment target is overly ambitious and its achievement will largely depend on the availability of foreign financing. Transport Sector Management 30. The Ministry of Transport (MOT), created in 1970, is responsible for transport sector management, including (a) reviewing, coordinating and screening transport investment proposals prepared by other ministries and public agencies, (b) formulating transport policies, and (c) approving the tariffs of REGIFERCAM, the National Port Authority and CAMAIR. In regard to road transport, MOT's Department of Transport covers a variety of tasks ranging from registering vehicles, issuing driving licenses, inspecting vehicles, delivering transport licenses, preparing road transport legislation and studying road transport costs. The Ministry of Equipment and Housing (MINEH) is the main responsible agency for road infrastructure. Its Depart- ment of Highways (DH) assumes the overall responsibility for planning, con- structing and maintaining the road network. Within this Department, the Division of New Works plans and builds roads, and the Division of Highway Maintenance (DHM) maintains them. To carry out road maintenance operations, DH rents the necessary equipment from the National Civil Engineering Equip- ment Pool (NCEEP), an autonomous Government agency. NCEEP's rental rates, which are approved by MINEH, originally included equipment amortization in addition to maintenance and repair costs. Rental rates have not been raised much since 1969, and are now about 40 percent below the level necessary to provide adequate amortization of equipment. This has resulted in failure to renew equipment, which is now worn out and needs to be replaced. To ensure the regular renewal of road maintenance equipment NCEEP will open and main- tain a special account to be funded by revenues from the lease of its equip-  - 12 - ment. The provisions to this account will be determined on the basis of the replacement cost and average life of the equipment (Section 4.02 (a) (i) of the draft Development Credit Agreement). Some difficulties have arisen between DH and NCEEP over the distribution of responsibilities. These difficulties have increased with deterioration of existing and unavailability of new equipment. MINEH is currently studying a reorganization of the agencies dealing with road maintenance, including the alternative of merging DH and NCEEP into a new agency responsible for the entire network. This could rein- force the necessary coordination between DH and NCEEP and increase road main- tenance efficiency. The Government has agreed to exchange views with the Bank before undertaking any major reorganization of agencies dealing with road maintenance (Section 4.03 (i) of the draft Development Credit Agreement). In practice, DH has concentrated its activities on paved, gravel and major earth roads. Other earth roads and tracks are built and maintained by local authori- ties, Government agencies, autonomous cooperatives and private companies. One purpose of the Feeder Roads Project is to coordinate the activities of these different groups by setting up a Central Feeder Roads Unit within the Division of Highway Maintenance. Road Transport 31. On a country-wide basis, road transport is the dominant mode. An exception is the Douala-Yaounde corridor where the road carries only about 25 percent of the through traffic of goods. The road network comprises about 2,300 km of paved roads, 7,000 km of gravel roads, and 42,000 km of feeder roads. 32. So far the Government, partially with the assistance of the Bank Group, has concentrated its effort in building and rehabilitating paved roads. The completed First Highway Project (Loan No. 663/Credit No. 180-CM, US$19.9 million, March 1970) included construction of the Ngaoundere-Garoua road (246 km) and the Tiko-Victoria road (22 km) to paved standards and the preinvestment studies for the improvement of Garoua-Mora (258 km) and Douala- Pont de Nkam (161 km) roads. The Tiko-Victoria road was satisfactorily completed in April 1973. The construction of the Ngaoundere-Garoua road encountered technical difficulties (insufficient drainage) and was only completed in 1975 after two years of delays and cost overruns that were financed by the Government and a supplementary Bank financing. As explained in the Project Performance Audit Report (No. 1574, April 29, 1977) part of the above mentioned delays was also attributable to poor coordination between the various Government agencies that were sharing the responsibility for imple- menting the various components of the project. The Audit Report therefore recommended close monitoring of road conditions and careful maintenance of the road, plus a better coordination of transport activities to facilitate direct communications. The project also illustrated the need for better Government procurement procedures. These experiences have been absorbed by the Bank and the Government, and improvements have been made on the occasion of follow-up projects. The ongoing Second and Third Highway Projects both also include construction of roads to paved standards. In addition, the Bank finances a Feeder Roads Project that includes a four-year construction program for 2,200 km of feeder roads. Although there has been a great deal of effort to  - 13 - build and rehabilitate paved roads, the overall condition of the road net- work somewhat deteriorated because of low initial construction standards, increasing traffic and most particularly because of insufficient maintenance. Unpaved roads, which account for 97 percent of the network length, are fre- quently impassable during the rainy season. In the dry season, corrugated and stony road surfaces and deep potholes cause excessive wear to vehicles. As a result, trucking costs are high. The Government has therefore decided to take the necessary measures to improve road maintenance and the bulk of the effort will come under the proposed project. PART IV - THE PROJECT 33. The need to improve road maintenance was identified in the early 1970s during the preparation of the Second Highway Project. That project included financing for an overall study to define a five-year road maintenance program which was expected to constitute the basis of the maintenance com- ponent of the Third Highway Project. However, the execution of the study by consultants was very slow since collecting the necessary data in the field proved to be more difficult than anticipated. There was also a difference of views between the Government and the Bank as to the adequacy of the size of the program recommended by the consultants. Although there were conflicting views within the Government it was generally desired to carry out a larger program than the Bank believed possible with the technical and financial resources available. The road maintenance and rehabilitation components of the proposed project appear to be a maximum that the Government can carry out by force account in the short term. Should additional financial resources become available for road maintenance during project execution, the Government has agreed to review, in consultation with the Bank, its overall maintenance program in order to determine how the additional funds may best be utilized in combination with the available administrative and manpower resources. An appraisal mission visited Cameroon in April 1978 making use of the consul- tants' technical inputs but without the benefit of their report, the final draft of which became available only in May 1978. A follow-up post-appraisal mission also visited Cameroon in October 1978. Negotiations were held from April 26 to May 1, 1979 in Washington with a delegation from Cameroon led by H.E. Benoit Bindzi, Ambassador of Cameroon in Washington. A Staff Appraisal Report entitled Fourth Highway Project - Cameroon (No. 2225-CM) dated May 18, 1979, is being circulated separately to the Executive Directors. A timetable of key events is presented in Annex III of this report. Project Objectives and Description 34. The major goal of the proposed project is to improve the Govern- ment's capacity to maintain roads by strengthening the Department of Highways and the National Civil Engineering Equipment Pool's operations, improving training and ensuring sufficient budgetary allocations for road maintenance. A primary objective is therefore institution building. Other objectives are to promote the domestic contracting industry, control vehicle loads and improve road planning.  - 14 - 35. With these objectives in mind, the proposed project will consist of: (a) a three-year training program for the Department of Highway's and the National Civil Engineering Equipment Pool's maintenance staff; (b) a four-year program of routine maintenance and minor repairs of about 16,900 km of roads, and rehabilitation of about 1,350 km of unpaved roads, by force account, including provision of road maintenance and workshop equipment; (c) rehabilitation of about 340 km of unpaved roads by domestic contractors with technical assistance; (d) provision of two weighing stations; (e) setting up of a Road Planning Unit within the Department of Highways; and, (f) completion of an ongoing study of the economic feasibility and detailed engineering of the Douala - Yaounde road and preinvestment studies of about 500 km of forestry access roads. Project Implementation 36. The Ministry of Economic Affairs and Planning would have overall responsibility for project implementation. Physical implementation would be carried out by the Ministry of Equipment and Housing through its Department of Highways, except for the purchase of major road and workshop equipment, major repair of road equipment, and advanced training for mechanics and operators, which would be carried out by the National Civil Engineering Equipment Pool, and for technical assistance to domestic contractors, which would be carried out by the National Center for Assistance to Small- and Medium-Size Enterprises. 37. The proposed project would take five years to complete and would start with the training program for road maintenance staff, which would last three years and be in three phases. Staff trained during the first year would start road maintenance operations with new equipment at the beginning of the second year and this would be repeated with staff trained during the second and third years. 38. The Government will designate a qualified and experienced project coordinator who will prepare quarterly reports on projects implementation and a project completion report (Section 3.04 (d) of the draft Development Credit Agreement).  - 15 - Training Program 39. The training program would concentrate on retraining most existing employees and training new employees to supply them with the skills needed to carry out road maintenance and rehabilitation. This training would be mainly carried out by a Training Production Brigade (TPB) staffed with a road engi- neer, a chief operator, and a chief mechanic as technical assistance experts. Government has agreed to designate the counterparts to the expatriate experts. This TPB will be aided by a small DH Training Center with a total possible throughput of about 600 trainees in three years. DH Training Center would be staffed with a head and an administrative/accounting specialist and two road supervisors, a chief mechanic, and a chief operator as instructors. All training activities would be coordinated by an expatriate training advisor. Assurances have been obtained regarding the arrangements for staffing training facilities and for training of staff and instructors (Section 3.01(b) and 3.06 of the draft Development Credit Agreement). Road Maintenance and Rehabilitation Program 40. The purpose of the road maintenance and rehabilitation program is to keep the road network passable through routine maintenance and minor repairs and to start rehabilitation of the unpaved network. Routine main- tenance on paved and unpaved roads will be done by force account using mechanical and manual units. In addition, minor repair units will carry out urgent repairs, improve drainage, and carry out spot regravelling on the worst sections of unpaved roads. The Government traditionally uses highly capital- intensive methods for road construction and maintenance. A first attempt to use a different mix of capital and labor for the construction of low traffic roads is being undertaken in West Cameroon, where an experiment in feeder road improvement using labor-intensive and intermediate technology is being carried out under the Feeder Roads Project. Under the proposed pro;ject, the Government would introduce different mixes of labor and equipment for road maintenance on the basis of recommendations made by consultants in the road maintenance study. A large number of manual units (172) will be set up, and minor repair units, using light equipment, will be created. 41. Rehabilitation by force account would be carried out by nine brigades each of which would rehabilitate about 50 km of unpaved roads per year. The roads to be rehabilitated will be selected annually and this yearly work program will be prepared by DHM with the assistance of provincial engineers and the new Road Planning Unit. Not later than three months before the beginning of the works, the Government would submit the proposed work program to the Bank Group for review and approval (Section 3.01, (b) (ii) of the draft Development Credit Agreement). 42. The road maintenance and rehabilitation program would be implemented in four years and in three phases. The program fits well into DH's current organization, in which subdivisions carry out operations under the close supervision of Provincial Offices, with the Division of Highway Maintenance responsible for the allocation of resources and control of execution. To  - 16 - speed up disbursements, a Government-financed revolving fund would be created in each Provincial Office to be used for some operating expenditures of the rehabilitation brigades. In view of the substantial financial, administrative and manpower resources required on the part of the Government to carry out the road maintenance and rehabilitation program, the equipment needed therefor should be procured in three successive phases. Ordering equipment for the second and third phase would be contingent upon satisfactory performance of units and brigades equipped under the previous phases and upon adequate road maintenance funding by the Government (para. 4 of Schedule 3 to the draft Development Credit Agreement). 43. To help carry out the maintenance and rehabilitation program, the proposed project would provide 216 man-months of technical assistance includ- ing: (i) a road engineer and mission leader to assist DH in carrying out the program and in preparing a follow-up program; (ii) an organization/accounting expert to assist DH in setting up a mechanism for preparing detailed work pro- grams and reports on maintenance output; (iii) a procurement advisor to assist NCEEP with the ordering and delivery of new equipment; (iv) a mechanical engineer to assist NCEEP's workshop heads in setting up new workshop equipment and training staff on the job; (v) an equipment specialist to assist NCEEP in setting up mobile repair units and to help assure proper maintenance of new equipment in the field; and (vi) a spare parts management specialist to strengthen NCEEP's methods for procuring and "stocking" spare parts. Promotion of the Small- and Medium-Scale Domestic Civil Works Contractors (SMDCWC) 44. The proposed project would constitute a first step toward promoting SMDCWC who would be given an opportunity to rehabilitate about 340 km of unpaved roads. The proposed project would also provide 78 man-months of technical assistance comprising (i) an administrative expert to assist DH in defining measures to promote the SMDCWC; (ii) an advisor to contractors that would be assigned to the National Center for Small- and Medium-Size Enter- prises; and (iii) a road engineer to assist DH in defining and supervising the rehabilitation works to be carried out by the SMDCWC under the proposed project. There is an ample market for domestic contractors and for an ex- panded program employing them if these first steps are promising. Weighing Stations 45. Two weighing stations would be set up; one at the outskirts of Douala (to control traffic on the Douala-Bafoussam axis) and one at the exit of the railhead at Ngaoundere (to control traffic with northern Cameroon and Chad). Setting up of a Road Planning Unit 46. Not later than December 31, 1979, the Government would set up a Road Planning Unit (RPU), which will be staffed by one economist or statistician in charge of the unit and two technicians (Section 3.07 of the draft Development  - 17 - Credit Agreement). In addition, the proposed project would include three years of technical assistance by a transport economist. The provision of technical assistance to RPU would begin when the key staff of the office have been appointed. PreinvestmevLt Studies 47. This item includes completion of the ongoing study currently being carried out under Government financing for construction of the Douala-Yaounde road, and 500 'Km of studies for forestry evacuation roads. A reconnaissance study of forestry roads has been carried out by consultants under the Second Highway Project in 1978. This study is based on the current and potential producLion of forestry products by major regions. After selection by the Government of about 500 km of roads acceptable to the Bank, the RPU will prepare a feasibility study for their improvement. About 250 km of roads with the highest return will then be selected. Consultants will carry out detailed engineering on these roads under terms of reference approved by the Bank. Cost Estimates and Financing 48. The total capital cost of the project, including taxes and duties, is estimated at US$83 million, with a foreign exchange component of US$48 million. Local costs are estimated at US$17 million and taxes and' duties amount to about US$18 million. The proposed Bank loan (US$38 million) and IDA credit (US$10 million) amounting to US$48 million would finance 100 percent of the foreign exchange component of the project costs equivalent to 74 percent of the total project costs net of taxes and duties. The Govern- ment's contribution of US$35 million would finance all local costs including US$18 million of taxes and duties. The costs estimates of road and workshop training and weighing equipment are based on recent suppliers' quotations. The average rehabilitation costs, net of taxes, of unpaved roads is estimated at US$13,200 per km for works carried out by force account and at US$15,400 per km for works carried out by contractors. Cost estimates for building construction and infrastructure works for weighing stations are based on bids recently received in Cameroon for similar works. Costs for technical assist- ance were estimated on the basis of current costs for consulting services in West Africa with an average billing rate, net of taxes, estimated at about US$5,900 per man-month plus reimbursable expenses of US$2,200. Physical contingencies amounting to 10 percent of the road equipment base cost and price contingencies amounting to 27 percent of the total base cost were added. Recurrent Costs 49. In addition to its contribution to the financing of the capital costs of the proposed project, the Government would allocate enough funds for the full maintenance of the classified network during project execution and in particular for periodic maintenance of paved roads which has first priority since it postpones the need for premature reconstruction. It will be carried out, to a large extent, by contractors. The total annual costs of the routine maintenance, minor repairs and periodic maintenance are estimated at US$14.6  - 18 - million, US$1.8 million and US$8.5 million respectively in 1979 prices to reach a satisfactory level. However, the present budget allocation for FY78 was only US$13 million which would hardly cover expenditures for routine maintenance, and would leave no funds for periodic maintenance and minor repairs. For FY79, the Government has substantially increased the road maintenance budget to US$15.6 million plus US$2.5 million specifically ear- marked for periodic maintenance of paved roads. If we assume the start of operations in three phases at the beginning of FYs 1982, 1983 and 1984 respec- tively, the budget allocation for road maintenance should be increased (in 1979 prices) from US$20.6 million in FY80 to US$24.9 million in FY84. The above requirement would represent, in FY84, 3.8 percent of the national budget, a target already exceeded by countries like Ivory Coast and Niger. The Government has agreed to finance the above budgetary allocations and the operating costs of the nine rehabilitation brigades after project completion (Section 4.02 (a) of the draft Development Credit Agreement). The Government has also agreed to submit to the Bank, for review and comment, not later than April 30 of each year until project completion, the draft maintenance budget for the following fiscal year (Section 4.02 (b) of the draft Development Credit Agreement). Procurement and Disbursements 50. The road maintenance and rehabilitation equipment and the workshop, training and weighing equipment, amounting to about US$41 million including taxes and contingencies, will be procured on the basis of international com- petitive bidding in accordance with Bank Guidelines. Contracts for items costing less than US$50,000 and not exceeding a cumulative total of US$1 million may be procured following local competitive bidding procedures accept- able to the Bank. Domestically manufactured goods will be allowed a preference of 15 percent or the level of applicable duty, whichever is less, when com- paring domestic bids with those of foreign manufacturers. Materials (US$3.2 million), fuel and lubricants (US$4.1 million), and spare parts (US$4.9 million) for operating the road rehabilitation brigades will be procured locally on the basis of competitive bidding procedures acceptable to the Bank. Road rehabilitation by contractors (US$8.2 million), infrastructure works for the weighing stations (US$1.7 million) and building construction (US$0.3 million) which are small, scattered and unattractive to foreign contractors will be procured following local competitive bidding procedures acceptable to the Bank. Prospective bidders will have to be prequalified. The study of the Douala-Yaounde road will continue to be carried out by consultants Gauff (Federal Republic of Germany) according to terms of reference and under conditions satisfactory to the Bank. Technical assistance and forestry evacuation road studies will be carried out by consultants whose terms and conditions of employment, qualifications and experience shall be acceptable to the Bank. 51. The proceeds of the IDA credit and Bank loan would be disbursed against: (a) 100 percent of the foreign cost of imported road mainte- nance and rehabilitation, workshop, training and weighing equipment and 63 percent of the local cost of these items if procured locally: US$24 million;  - 19 - (b) 63 percent of the total costs of materials, fuel and lubricants, and spare parts for the rehabilitation brigades (representing the estimated foreign exchange component): US$6.8 million; (c) 55 percent of the total cost of building construction and road rehabilitation by contractors, and infrastructure works for the weighing stations (representing the estimated foreign exchange component): US$5.1 million; and, (d) 100 percent of the foreign exchange cost of technical assistance, fellowships and preinvestment studies: US$6.7 million. An amount of US$5.4 million would remain unallocated. Disbursements would be fully documented, except for those under (b), where disbursements would be made against a certified statement of expenditures for which the documentation will be retained by DR. These operating costs would be reflected in separate accounts which would be audited by the General State Inspectorate (IGERA) or any other independent auditors acceptable to the Government and the Bank (Section 4.01 (c) of the draft Development Credit Agreement). Retroactive financing by the Bank to a maximum of US$0.3 million would be provided in order to ensure continuity of the ongoing study of the Douala-Yaounde road after March 31, 1979. Benefits and Risks Economic Rate of Return 52. Substantial benefits would accrue to road users in the form of lower transport costs which would subsequently be passed on to producers and con- sumers as avoided tariff increases in view of the keen competition between transporters. The economic rates of return of the routine maintenance program are estimated to be 105 percent for paved roads, the cost of which is US$2.5 million, and 185 percent for unpaved roads, the cost of which is US$16 mil- lion. Such high rates of return are not uncommon for maintenance projects and reflect the initial poor state of the road and the heavy traffic. The minor repairs program, the cost of which is US$3 million, would yield an estimated rate of return of 35 percent. The rehabilitation works of unpaved roads by force account, the cost of which is US$26.6 million, were estimated to result in a rate of return of 40 percent. The rehabilitation of 340 km by domestic contractors, the cost of which is US$9 million, was estimated to have a 46 percent rate of return. The somewhat higher return for the rehabilitation works than for the minor repair works reflects the four year additional economic life of the rehabilitation works as well as the high traffic volume on the roads selected for rehabilitation. 53. The average economic rate of return on these components, which account for 80 percent of total project costs, is 82 percent corresponding to a benefit/cost ratio of 3.0:1 discounted at 12 percent. In addition the project is expected to yield a number of benefits whose value cannot be  - 20 - quantified. The proposed project would make a start in promoting domestic contractors to carry out public works. As they gain experience in public works, they are likely to form joint ventures with expatriate contractors to bid for major public works contracts. 54. Installing weighing stations on trunk roads would enable the Govern- ment to enforce load limitations, and attempt to prevent the common practice of truck overloading. The benefits from this investment would accrue to taxpayers as well as the Government in the form of avoidance of premature expenditures for rehabilitation of main roads. 55. The creation of a Road Planning Unit within the DH would be a major step in establishing a balanced program of road maintenance, rehabilitation and construction in accordance with the requirements of the transport sector and with overall development needs. This unit would be established at a critical time when major investments in roads are to be evaluated, e.g., the Douala-Yaounde and Yaounde-Bafoussam roads. The Bank financed transport sector study (see para. 28) is tuned to provide a sound basis for planning for these major projects. Risks 56. As the execution of the proposed project would be phased in three stages (para. 42) in line with the absorptive capacity of the executing agencies, no unusual risks are anticipated in the physical implementation of the project. The risks of shortfalls in local fundings that has often impeded well designed road maintenance projects in the past is also limited since only a minor increase in the road maintenance budget would be required to cover the recurrent expenditures under the proposed project. 57. A special project risk is the balance between the governmental effort in implementing the proposed project and other projects in the highway sector. The particular problem of trying to do too much too soon may well arise if the Government decides to carry out a large road maintenance effort outside of the proposed project under bilateral assistance. In this case there is a risk of underutilization of equipment because of the limitation of trained personnel and equipment servicing facilities. This problem has been discussed at negotiations and an understanding has been reached with the Government that should additional funds for road maintenance become available, the Government would review, in consultation with the Bank, its overall main- tenance program and means to carry it out.  - 21 - PART V - LEGAL INSTRUMENTS AND AUTHORITY 58. The draft Loan and Development Credit Agreements between the United Republic of Cameroon and the Bank and the Association, the Report of the Committee provided for in Article III, Section 4 (iii) of the Articles of Agreement of the Bank and the Recommendations of the Committee provided for in Article V, Section 1 (d) of the Articles of Agreement of the Association are being distributed to the Executive Directors separately. 59. Special conditions of the project are listed in Section III of Annex III. 60. I am satisfied that the proposed Loan and Development Credit would comply with the Articles of Agreement of the Bank and the Association. PART VI - RECOMMENDATION 61. I recommend that the Executive Directors approve the proposed Loan and Development Credit. Robert S. McNamara President Attachments May 22, 1979  ANNEX I -22- Page I of 6 CUl1mW - SOCIL ENDICATOIE DATA 8= RFRERNCE ROMPS (ADJUSTED AERGES CMROCN L LAND AREA (THOUSAND SQ. Of.) - MOST RIECU ESTIATS) TOTAL 475.4 SAE SANE EIT SIGHER AGRICULTURAL 156.4 MDST RCurT GROGRAPEIC INCOME INCOME 1960 Lb 1970 A ESTxKATE Ab R8GION L GROUP jd GROUP a GNP PER CAPITA (U5$) 110.0 200.0 340.0 223.6 432.3 867.2 ENERGY CONSUMPTION PER CAPITA (KILOGRAltS OF COAL EQUIVALENT) 55.0 91.0 104.0 86.7 251.7 578.3 POPULATION AND VITAL STATISTICS TOTAL POPUIATION, MID-YEAR OMILLIONS) 5.5 6.8 7.8 URBAN POPULATION (PERCENT OF TOTAL) 14.9 /f 20.5 28.5 13.6 24.2 46.2 POPULATION DENS ITY PER SQ. XM. 12.0 14.0 16.0 18.4 42.7 50.8 PER SQ. KM. AGRICULTURAL LAND 36.0 44.0 50.0 53.6 95.0 93.3 POPULATION AGE STRUCTURE (PERCENT) 0-14 YRS. 40.0 43.0 42.7 44.4 44.9 42.9 15-64 YRS. 56.0 54.0 53.8 52.7 52.8 53.5 65 YRS. AND ABOVE 4.0 3.0 3.5 2.8 3.0 3.5 POPULATION GROWTH RATE (PERCENT) TOTAL 1.8 2.1 1.9 2.6 2.7 2.5 URBAN *- 6.1 7.6 5.8 8.8 4.7 CRUDE BIRTH RATE (PER THOUSAND) 43.5 42.1 40.4 46.9 42.2 37.8 CRUDE DEATH RATE (PER THOUSAND) 28.0 23.9 22.0 20.6 12.4 10.8 GROSS REPRODUCTION RATE 2.3 A2 2.7 2.7 3.1 3.2 Z.5 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) .. .. .. USERS (PERCENT OF MARRIED WOlEN) .. .. .. 2.5 14.2 20.0 FOOD AND NUTRITION INDEX OF FOOD PRODUCTION PER CAPITA (1970-100) 70.4 100.0 98.2 94.2 104.3 107.3 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIRIEMNTS) 96.0 96.0 102.0 90.1 99.5 105.3 PROTEINS (GRAMS PER DAY) 59.0 59.0 59.3 55.2 56.8 63.0 OF WHICH ANIMAL AND PULSE .. 23.0 A 16.5 17.1 17.5 21.7 CHILD (AGES 1-4) MORTALITY RATE .. .. .. .. 7.5 8.0 HEALTH LIPF EXPECTANCY AT BIRTH (YEARS) 35.9 41.0 41.0 43.7 53.3 57.2 INFANT MDRTALITY RATE (PER THOUSAND) *- *- 142.0 /i 138.4 82.5 53,9 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. 32.0 *- 22.4 31.1 56.8 URBAN .. 77.0 .. 66.3 68.5 79.0 RURAL .. 21.0 .. 10.4 18.2 31.8 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. .. .. 23.9 37.5 30.9 URBAN .. .. .. 70.3 69.5 45.4 RURAL .. .. .. 14.2 25.4 16.1 POPULATION PER PHYSICIAN 40460.0 ef 25960.0 26220.0 ft 21757.5 9359.2 2706.8 POPULATION PER NURSING PERSON 10898.0 /f 2470.0 2270.0 /f 3473.8 2762.5 1462.0 POPULATION PER HOSPITAL BED TOTAL 530.0 /f 310.0 .. 645.4 786.5 493.9 URBAN .. .. .. 172.9 278.4 229.6 RURAL .. .. .. 1292.6 1358.4 2947.9 ADMISSIONS PER HOSPITAL BED .. .. .. 19.2 19.2 22.1 HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL .. .. 5.2 4.9 .. 5.2 URBAN .. .. 5.1 5.0 .. 5.0 RURAL .. .. 5.2 4.7 .. 5.4 AVERAGE NUMBER OF PERSONS PER ROOM TOTAL .. .. .. .. .. 2.0 URBAN 2.3 1.5 RUJRAL ... ... 2.7 ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL .. .. .. .. 28.3 64.1 URBAN ... .. . 67.8 RURAL 10.3 34.1  - 23- ANNEX I PaRe 2 of 6 TAILS 3A, CAmEROON - SOCIAL INDICATORS DATA SHEET REFERENCE GROUPS (ADJUSTED A ERAGES CAMEROON - MOST RECENT ESTIMATE) SAME SAME NEXT HIGHER MOST RECENT GEOGRAPHIC INCOME INCOME 1960 lb 1970 /b ESTIMATE /b REGION /c GROUP /d GROUP /a EDUCATION ADJUSTED ENROLLMENT RATIOS PRIMARY: TOTAL 65.0 107.0 111.0 52.1 75.8 99.8 FEMALE 43.0 91.0 97.0 37.6 67.9 93.3 SECONDARY: TOTAL 2.0 9.0 12.0 8.0 17.7 33.8 PEMALE 1.0 5.0 8.0 5.0 12.9 29.8 VOCATIONAL (PERCENT OF SECONDARY) 23.0 23.0 23.0 7.2 7.4 12.8 PUPIL-TEACHER RATIO PRIMARY .. 48.0 51.0 43.2 34.3 34.9 SECONDARY .. 24.0 23.0 22.8 23.5 22.2 ADULT LITERACY RATE (PERCENT) .. 12.0 6.0 L4 20.3 63.7 71.8 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 3.0 6.0 .. 3.9 7.2 12.4 RADIO RECEIVERS PER THOUSAND POPULATION 3.0 36.0 96.0 40.1 71.1 104.5 TV RECEIVERS PER THOUSAND POPULATION .. .. .. 2.2 14.1 28.1 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION 2.0 /h 3.0 3.0 3.9 16.3 45.2 CINEMA ANNUAL ATrENDANCE PER CAPITA 0.1 .. 1.0 1.2 1.6 4.6 EMPLOYMENT TOTAL LABOR FORCE (THOUSANDS) 2800.0 3300.0 3600.0 FEMALE (PERCENT) 42.6 42.4 41.9 32.6 28.0 25.7 AGRICULTURE (PERCENT) 88.0 82.0 79.4 73.3 54.1 46.2 INDUSTRY (PERCENT) 4.6 6.0 6.7 PARTICIPATION RATE (PERCENT) TOTAL 51.0 49.4 48.0 42.0 37.8 33.8 MALE 59.6 57.9 56.6 54.8 50.3 48.1 FEMALE 42.8 41.2 39.6 27.3 20.9 17.3 ECONOMIC DEPENDENCY RATIO 1.0 1.2 1.2 1.2 1.3 1.4 INCOME DISTRIBUTION PERCENT OF PRIVATE INCOME RECEIVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS .. .. .. 25.7 19.5 23.6 HIGHEST 20 PERCENT OF HOUSEHOLDS .. .. .. 55.1 48.9 52.3 LOWEST 20 PERCENT OF HOUSEHOLDS .. .. .. 5.8 5.9 4.3 LOWEST 40 PERCENT OF HOUSEHOLDS .. .. .. 14.5 15.7 13.1 POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. .. 108.8 155.9 191.9 RURAL *- *- 70.0 74.1 97.9 193.1 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .- *- 112.0 124.4 143.7 319.8 RURAL .. .. 85.0 59.6 87.3 197.7 ESTIMATED POPULATION BELOW POVERTY INCOME LEVEL (PERCENT) URBAN .. .. 15.0 26.8 22.9 19.8 RURAL .. .. 40.0 47.6 36.7 35.1 Not available Not applicable. NOTES /a The adjusted group averages for each indicator are population-weighted geometric maeans, excluding the extreme values of the indicator and the most populated country in each group. Coverage of countries among the indicators depends on availability of data and is not uniform. lb Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Most Recent Estimate, between 1973 and 1977. /c Africa South of Sahara; /d Lower Middle Income ($281-550 per capita, 1976); /e Intermediate Middle Income ($551-1135 per capita, 1976); /f 1962, including ex-South Cameroons under British Administra- tion; /LA West Cameroon only; /h 1964-1966; Li 1972; Li 1971. September, 1978  - 24 - ANIIX I Page 3 of 6 KEY TO COUNTRIES BY REGION AND INCOME C-ROUO/a Region!/locae Group Loo Ice,/bLw Middle Int-ediate Middl Upper Middle 'igh Tno/f Countrie T Inc~rTo / -use/ ill reporter lenin Naleeli Angola rhare 03jibout i Ga on Rurundi N-li Boew=ane Ivory GosE Reunion Central African Ep. Mo-bique C-wero.n Bauririue Chud Niger Cape Verde Ngeibbi Co_noros Rwnda Congo, P.R. Seychelles Ethiopia Siterr Leone Equatorial Glrie- AFRICA SOUTH Gunbia, The So -alia Liberia OF SAhAP\ Guinea Tanzania Meuritania C lcea-Bis..u Toga Nigeria Kenya IgaUde Rhodesia -Lestho upper Volta Sso Tone & Principe Madagascar .aire Senega Swaet ilaed Zo=b ia Egypt Maroco. Algerie gahr-in Israel euEi t tORTE AFRICA Veno_ AR. Jord-n Iran Oran Libya ARC NIDDLE C-ee I P.0.R. yrian A,R. IraqQtr EAST TaPiniA Lebanon Saudi Ar-bia Mired drab Rir. Afghanist.a Nald bee SOUTH ASIA Baland P kistan Bura- Sri Lanka Indi Canbodia New Hebrtida Chi.., Rep. of FiJi AnErio-n Se-a Indonesia Papas Neu Guinea Gilb-rt Islands Hong Kong Brinel EA'T ASIA Lo P. D. R. Philippines Kore, Rep. of Frenh Polynasia Solonon Islands Thailnd Maca Cu.n Viert NRa Tonga Malaysia Ne- CGedona- Western Sanaa Trust Territoty of the Pacific Stagapore Mati Bolivia tnrigua G-tenls Ar-ntine Bahts EI Salvador Bglie- Jaicsa Barhbds ermuda Grende Chile NeIo Boseil C-olon LATIN AMERICA CGy .na CGoLnha Nirgu frenth Cuiana Ma.nique AND CARIBBEAN Bond.u.. Cuata Micu Per..ugy Cu-deloup. Vene. uel St. Vi.cerrlt Doxtice peS- NRtherl- da Antilles virgin Islada (IUS.) DlInic-a Rep. Su. Kitts--milt P'-S Ecuador Sc Lucia Puerto Rico BuriusEm Trinidad A Tobago Iraguav Turkey Cyprus Ch nnel Ialend. Isl of Nan Feeree Islands ETUROPE KsItal GibrIata portugal r esr Y.8o l1Yi. Sp in Australia Fi`iand Italy Nur-y Mniled St.aes IRDGSTRIALIZED Au-tria France Japan South AfhirE COUNTRIES Belgian Ge-many Fed. Rep. of Lune.ubourg Sweden Caneda Iceland Nethetlands Switrerlend Deesark Ireland tee fasland United Kinadot Glhanbi TarD-n. Rep. USSR Rulgaria Rurgary CENTRALLY PLANNED China PF.R. af K-rD L. Rep, af tGINOMIES Cbha Mngoglia Ce.chna Iavakia Puland /a 7aued n 1976 GNP pR cpita in 1976 U dollrs 7 $028G or Sees per cpita. /c $281-550 per capit. 'd S551-1135 perc -pita. /n 51136-2500 per capita EPOES 'f ov 2r IlBEE por capit  - 25 - ANNEX I Page 4 of 6 DEFINITIONS OF COCIASL INDICATORS l uOs: although the data are drawn from sources generally judged the most authoritative and reliable, it should also be noted that they may not be inter- nationatv cooparable because of the lack of standardieed dtfinitions and concepts used by different countries in collecting the data. Th. dat are., nonetheless, useful to de.nriba orders of magnitude, indicate trends, and characterize certain major differences between c-ontrie. lhoe odioastd grsov .veroess for each indicator are pspulatiuo-wsighted geonetric means, eocluding the eetreem values of tho indicator and the nest populted c.ountry in each group. Coverage of countries among the indicators depends on avaIlability of data sod is rot uniform, Due to lack of data, -.otp a ertges for Capital Surplus Oil Exporters and indicators of access to water and excreta disposal, housing, incmte distribution and poverty are sirrpl popolAtion-wetghted feonetric moons without the excluaion of extreme vaises LAND ARIA (thousand sq. km) Population per hospital bed - total, urban, and rural - Population (total, Total - Iotal surface area comprising land area and inland waters, urban, and rural) divided by their respective somber of hospital beda Agricultuacl - Mcot rot.nt estimate of agricultural area used tomporarily available in public and private general and specialized hospital and re- or pernanently for crops, pastures, market and kitchen gardens or to habilitation centers. Hospitals are establishments permanently staffed by lit fallow. at least one physician. Establishments providing principally custodial care.are notincluded. Rural hospitals, however, include health and medi- GNP PER CAPITA (US$) - GNP per capita estimates at current market prices, ce roter not permau ently staffed by a physician (but by a medical as- calculated by same conversion method as World Bank Atlas (1975-77 basis); sistant, nurse, midwife, etc.) which offer in-patient accommodation and 1960, 1970, and 1977 data. provide a limited range of medical facilities. Admissions per hospital hod - Total number of admissions to or discharges ENERGY CONSUMPTION PER CAPITA - Annual consumption of commercial energy from hospitals divided by the sumber of beds. (coal ard lignite, petroleum, natural gas and hydro-, nuclear and gao- th,omal electricity) in kilograms of coal equivalent per capita. HOUSING Average sise of household (persons per household) - total, urban, and rural- POPULATION AND VITAL STATISTICS A household consists of a group of individuals who share living quarters Total population, mid-year (millions) - As of July 1; if not available, and their main meals. A boarder or lodger may or may not be included in average of two end-year estimates; 1960, 1970, and 1977 data, the household for statistical purposes. Statistical definitions of house- Urban population (percent of total) - Ratio of urban to total popula- hbld vary. tiont different definitions of urban aresa may affect comparability Average number of persons per room - total, urban, and rural - Average num- of data among countries. ber of persons per room in all, urban, and rural occupied conventional Population density dwellings, respectively. Dwellings exclude non-permanent structures and Per s. kr. - Mid-year population per square kilometer (100 hectarse) unoccupied parts. of total area. Access to electricity (percent of dwellings) - total, urb-n, and rural - Per sq. k. agriculture land - Computed as above for agricultural land Conventional dwellings with electricity in living quarters as percentage only. of total, urban, and rural dwellings respectively. Population age structure (percent) - Children (0-14 years), working-age (15-64 years), and retired (65 years and over) as percentages of mid- EDUCATION year population. Adjusted enrollment ratios Population growth rate (percent) - total, and urban - Compound annual Primary school - total, and female - Total and female enrollment of a11 agea growth rates of total and urban mid-year populations for 1950-60, at the primary level as percentages of respectively primary school-age 1960-70, and 1970-75. populations; normally includes children aged 6-11 yearsa but adjusted for Crude birth rute (per thousand) - A=nual live births per thousand of different lengths of primary education; for countries with universal adu- mid-year population; ten-year arithmetic averages ending in 1960 and cation enrollment may exceed 100 percent since some pupils are below or 1970 and five-year average ending in 1975 for most recent estimate above the official school age. Crude death rots (per thousand) - Annual dsaths per thousand of id- Secondary school - total. and female - Computed as above; secondary educa- year population; ten-year arithmetic averages ending in 1960 and 1970 tion requires at least four years of approved primary instruction; pro- and five-year average ending in 1975 for mast recent estimate. vides general vocational, or teacher training instructions for pupils Gross rsproduction rate - Average number of daughters a woman will bear usually of 12 to 17 years of age; correspondenes -n-ursa are generally in her normal reproductive period if she experiences present age- excluded. specific fertility rates; usually five-year averages ending in 1960, Vocational enrollment (percent of secondary) - VocatLonal institutions in- 1970, and 1975. lude technical, industrial, or other programs which operate independently Faily plannine - acceptors. enu-l (thousands) - Annual number of or as deportmonts of esoord-ry institution.. acceptors of birth-control devices under auspices of national family Pupil-teacher ratio - primary, and secondary - Total students enrolled in plunming program. primary and secondary levels divided by numbers of teachers in the torre- Facily planning - users (percent of married women) - Percentage of sponding levels. msrried women of child-bearing age (15-44 years) who use birth-control Adult literacy rate (percent) - Literate adults (able to read and write) as devicrs to a11 married women in same age group. a percentage of total adult population aged 15 years and over. FOOD AN U 'TRITtION CONSUMPTION Cndex of food oroduction par capita (1970-100) - Index number of per Passenger cars (per thousand population) - Passenger cars comprise motor cnre capita uncoal production of a11 food co-modities, seating less than eight persona; excludes ambulances, hearses and military Per c-pita oupoly of calories (percent of requirements) - Computed from vehicles. anergy equivalent of met food supplies avilable in country per capita Radio receivers (per thousand opuulation) - All types of receivers for radio per day Available supplies comprise domestic production, imports 1ess broadcasts to general public per thousand of population; ecludes unlicensed omports, cod changes in stock. Net supplies exclade animal feed, seeds, receivers in countries and in years when registration of radio sets was in quontities used in food processing, and leases in distribution. Re- effect; data for recent years may not be comparable since most countries quiromects were estimated by FAO based on physiological needs for nor- abolished licensing. mal activity and health considering environmental temperature, body TV receivers (per thousand population) - TV receivers for broadcast to gener-A weights, age and sea distributions of population, and allowing 10 per- public per thousand population; excludes unlicensed TV receivers in coun- coet for waste at household level, tries and in years when registration of TV sets was in effect. Per capita supply of protein (grams per day) - Protein content of per Newspaper circulation (per thousand population) - Shows the average circula- capita net supply of food per day. Net supply of food is defined as tion of "daily general interest newspaper", defined as a periodical publi- above. Requiranents for all countries established by USDA provide for cation devoted primarily to recording general newn. It is considered to a mininue allowance of 60 grams of total protein per day and 20 grams be "daily" if it appears at least four tiDss a week. of animal and pulse protein, of which 10 grams should be animal protein. Cinema annual attendance per capita per year - Based on the number of tickets These staodards are lower than those of 75 grame of total protein and sold during the year, including admissions to drive-in cinemas and mobile 23 grams of animal protein as an average for the vnrld, proposed by units. FAQ in the Third World Food Survey, Per capita protein oupply from animal and pulse - Protein supply of food EMPLOYMENT derived from animals and pulses in grams per day. Total labor for-e (thousands) - Economically attire persons, including armed Child (ages I-4) mortality rate (per thousand) - Annual deaths per thous- forces end unemployed but excluding housewives, students, etc. Defini- and in age group 1-4 years, to children in this age group. tiens in various countries are not comparable. Famale (Percent) - Female labor force as percentage o,f total labor force. HiALTfH Agriculture (percent) - Labor force in farming, forestry, hunting and fishing Life ospectanyv at birth (years) - Average number of years of life as percentage of total labor force. remaining at birth; usually five-year averages ending in 1960, 1970, Industry (percent) - Labor forte in mining, construction, manufacturing and and 1975. electricity, water and gas as percentage of total labor force. Infant =ortality rate (Per thousand) - Annual deaths of infants under Participation rate (percent) - total, male, and female - Total, male, and one year of age per thousand live birhts. female labor force as percentages of their respective populations. A_cces tO safe water (Percent of population) - total, urban, and rural - These are ILO's adjusted participation rates reflecting age-tom Sumter of people (total, urban, and rural) with reasonable access to structure of the popslation, dnd long time trend. safe water supply (includes treated surface waters or sntreated but Economic dependency ratio - Ratio of population under 15 end 65 and over to urcontamiated water such as that from protected bureholes, springs, the labor force in age group of 15-64 years. and sanitary wells) as percentages of their respective populations. an urbu are n public f-outai or standpast located not sore INCOME DISTRISUTION then 200 meters fror a house may be considered as being within rea- Percentage of private income (both in cash and kind) received by richest 5 .o.abln 000000 of that house. In rural areas reasonable access would percent, richest 20 percent, poorest 20 percent, and poorest 40 percent Imply that the housewife or members of the household do not have to of householdn. nre,.d a diopraportiomnte part of the day in fetching the family's -ose ' ords. POVERCY TARGET GROUPn Access_ to ecretr disposal (percent of population) - total, urban, and Estimated absolute poverty income level (US$ per capita) - urban and rural - rural -umber of people (total, urban, and rural) served by emcreta Absolute poverty income level is that income level below which a minimal dispcsal us percentages of their rospective populations. Ecreta nutritionally adequate diet plus essential non-food requirements is not {disposal nay include the collection snd disposal, with or without affordable. treotoont, of human .. creta and waste-water by water-borne systems Estimated relative poverty intone level (US$ per capita) - urban and rural - t-o use of pit privies and similar installations. Relative poverty income level is that income level less than one-third ?fiyLo