Ecuador - Sixth Highway Project

Document of FLE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-2840-EC REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF ECUADOR FOR A SIXTH HIGHWAY PROJECT June 4, 1980 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 - Sucre (SI) Calendar 1979 June 1. 1980 US$1 - S/ 25 Sf 25 S/ 1 - US$0.04 US$0.04 FISCAL YEAR .January 1 to December 31 ABBREVIATIONS CEPE - Corporacion Estatal Petrolera Ecuatoriana (Ecuadorian State Petroleum Corporation) DGOP - Direccion General de Obras Publicas (General Directorate of Public Works) ENFE - Empresa Nacional de Ferrocarriles del Estado (National Railway Company) MOP - Ministerio de Obras Publicas y Comunicaciones (Ministry of Public Works and Communications) UCCV - Unidad Coordinadora de Caminos Vecinales (Feeder Roads Coordination Unit) UPCT - Unidad de Planificacion y Coordinacion de Transportes (Transport Planning and Coordination Unit)  FOR OFFICIAL USE ONLY ECUADOR SIXTH HIGHWAY PROJECT LOAN AND PROJECT SUMMARY Borrower: The Republic of Ecuador Amount: US$55.0 million equivalent Terms: Payable in 17 years, including four years of grace, at 8.25 percent interest per annum. Project Description: The project's main objective is to build or improve about 1,500 km of secondary and feeder roads in the three coastal provinces of Guayas, Los Rios and El Oro. The project also contemplates (i) the strengthening of feeder road planning nationwide and the preparation of follow-up feeder road projects; (ii) the implementation of a 1981-84 maintenance program for the main road network and the rein- forcement of highway maintenance in the three provinces mentioned above; and (iii) technical assistance for trans- port planning and for training. The project's construction and main road network maintenance components pose no special risks. Improving road maintenance at the level of the three provinces gives rise to some uncertainties owing to the presently low administrative and technical capacity of the three provincial highway authorities. To minimize this risk (i) the Ministry of Public Works and Communications (MOP) and the provincial councils would sign comprehensive Maintenance Agreements, satisfactory to the Bank, whereby MOP would provide, inter alia, technical assistance (supported by consultants) and supervision necessary to carry out the maintenance works; (ii) the Bank and the Government would annually review with each province the adequacy and performance of the staffing provided by MOP and the province; and (iii) experienced MOP staff (with the help of consultants) would train provincial personnel in maintenance activities. IThlis document hits a restricted distribution and maty be used by recipients only in the performance| of theif offcial duties. It contents may not otherwise be disclosed without World Bank authorization.|  - li - Estimated Costs: Local Foreign Total (US$ Million Equivalent) A. Feeder Road Program (1981-84) (i) improvement of 1,500 km of roads 22.0 18.0 40.0 (ii) final engineering for (i) 1.0 1.5 2.5 (iii) technical assistance and studies 0.9 1.4 2.3 B. Road Maintenance Program (1981-84) (i) equipment and spare parts 1.8 16.6 18.4 (ii) construction of workshops and warehouses 1.0 1.0 2.0 (iii) technical assistance 0.2 0.7 0.9 C. Training Program 0.7 1.3 2.0 D. Technical Assistance for Transport Planning 0.2 1.0 1.2 E. Physical Contingencies 2.4 2.1 4.5 F. Price Contingencies 18.8 11.4 30.2 Total 49.0 55.0 104.0 Financing Plan: Local Foreign Total (US$ Million Equivalent) Bank - 55.0 55.0 Government 49.0 - 49.0 Total 49.0 55.0 104.0 Estimated - US$ Millions by Bank PY