Tanzania - Fifth Highway Project

Document of Fr E L P Y The World Bank FOR OFFICIAL USE ONLY Report No.P-244 1-TA REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE UNITED REPUBLIC OF TANZANIA FOR A FIFTH HIGHWAY PROJECT January 4, 1979 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Tanzania Shilling (TSh) US$1.00 = TSh 8.00 TSh 1.0 = US$0.125 (As the Tanzania Shilling is officially valued at a fixed rate of 9.66 TSh to the SDR, the US Dollar/ Tanzania Shilling exchange rate is subject to change. Conversions in this report were made at US$1.00 to TSh 8.00 which is close to the 1978 average exchange rate.) ABBREVIATIONS AND ACRONYMS CIDA = Canadian International Development Agency EAC = East African Community MCT = Ministry of Communications and Transport MoW = Ministry of Works SIDA = Swedish International Development Authority TAZARA = Tanzania-Zambia Railway Authority TANZAM = Tanzania-Zambia TRC = Tanzania Railway Corporation vpd = vehicle per day FISCAL YEAR Government: July 1 - June 30  FOR OFFICIAL USE ONLY TANZANIA FIFTH HIGHWAY PROJECT CREDIT AND PROJECT SUMMARY BORROWER: United Republic of Tanzania AMOUNT: US$20.5 million equivalent TERMS: Standard PROJECT The proposed project comprises the second stage of the DESCRIPTION: Borrower's trunk roads maintenance program, extending it to the maintenance and rehabilitation of 2,700 km of trunk roads in 11 regions in the northern and western parts of the country. The project draws on the experience gained from the first stage financed under the ongoing Highway Maintenance Project (Credit No. 507-TA). The project aims at increasing the long-term road maintenance capability of the Ministry of Works through provision of technical assistance for on-the-job and formal training including overseas training of engineers. The project would also finance road maintenance, rehabilitation and zonal workshop equipment and materials, training aids for the Morogoro Training School and construction of base and road camps and a small number of houses for technical experts. The proposed project also includes a pilot pro- gram for repair and rehabilitation of road maintenance equipment serving the regional and district roads in the Mwanza Region and Zanzibar. Project benefits consist mainly of savings in vehicle operating costs. Such savings will directly accrue to transport operators and thereafter are expected to be passed on to transport users (mainly farmers and bus passengers) in the form of reduced rates and fares. An increasing government concern with improving road maintenance and the planned close monitoring of imple- mentation will minimize the risks of the proposed project. This document has a restricted distribution and may be ued by recipients only in the performance of their official duties. Its contents may not otherwise be dieclosed without WorM Bank authorization.  - ii - ESTIMATED PROJECT CAPITAL COSTS: 1/ --------- US$ Mfillion---- Local Foreign Total Equipment, Vehicles & Spare Parts 0.91 11.71 12.62 Road Maintenance Materials 0.39 0.62 1.01 Civil Works 2.33 0.56 2.89 Pilot Regional Program 0.02 0.42 0.44 Technical Assistance & Training 0.21 4.19 4.40 Base Costs 3.86 17.50 21.36 Physical Contingencies 0.30 0.61 0.91 Price Contingencies 0.90 2.54 3.44 Total Capital Costs 5.06 20.65 25.71 FINANCING PLAN: -