Papua New Guinea - Third Highway Project

Document of F COPY The World Bank FILE CPY FOR OFFICIAL USE ONLY Report No. P-2700-PNG REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON PROPOSED LOAN AND CREDIT TO THE INDEPENDENT STATE OF PAPUA NEW GUINEA FOR A THIRD HIGHWAY PROJECT May 7, 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 otberwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit Papua New Guinea Kina (K) US$1.00 = K 0.71 K 1.00 US$1.41 K 1 million = US$1,410,000 ABBREVIATIONS ADT - Average Daily Traffic DPI - Department of Primary Industry DTCA - Department of Transport and Civil Aviation DWS - Department of Works and Supply GDP - Gross Domestic Product GNP - Gross National Product ERR - Economic Rate of Return FAO - Food and Agriculture Organization NEC - National Executive Council NPEP - National Public Expenditures Plan PNG - Papua New Guinea PNGDB - Papua New Guinea Developmental Board PNGHB - Papua New Guinea Harbours Board SHMA - Southern Highlands Hlanagement Authority UNDP - United Nations Development Program VOC - Vehicle Operating Costs PNG FISCAL YEAR January 1 to December 31  InternaLtional Bank for Reconstruction and Development Iternational Development Association FOR OFFIIAL. 1JFS ONLY - - rFOR For consideration on EXECUTIVE May 27, 1980 DIREC TORS' ______r______ MEE'TINGl l l- MEETINGFILE COPY R80-114/1 IDA/R80-79/1 FROM: Vice President and Secretary May 9, 1980 PAPUA NEW GUINEA: Third Highway Project Corrigendum The attached replaces the first page of the Loan/Credit and Project Summary of the President's Report and Recommendation on the proposed loan and credit to Papua New Guinea for a third h.ighway project, distributed on May 7, 1980, under R80-114[IDA/R80-79]. Distribution: Executive Directors and Alternates President Senior Vice President President's Council Vice Presidents, IFC Directors and Department Heads, Bank and IFC I111k dounlilonl ei n s:rieted dirtli(Ll1i d nid mtv be useLI by recipients only in the performane i1 thvI I iFic I tt \IU Ife. IIS coI nk S I OII nIv t ot%rA 1se be discl osed without Woild Bonk authorization   FOR OFFICIAL USE ONLY PAPUA NEW GUINEA FILE COPY THIRD HIGHWAY PROJECT Loan/Credit and Project Summary Borrower : Government of Papua New Guinea Amounts : Loan US$17.0 million Credit US$13.0 million Terms : Loan: For a period of 20 years, including a grace period of 5 years, with an interest rate of 8.25% per annum. Credit: Standard Prolect Descripton : The main objective of the project is to support the economic and social development of the Central Highlands of PNG by providing low cost road transport among the provinces of the Central Highlands and between each province and the Port of Lae. Additional objectives are to train local engineers and contractors, improve road maintenance, and support improved planning and preparation of rural transport projects. The project consists of: (a) improvement and paving of the Highlands Highway section between Kassam Pass and Daulo Pass (137 km), including supervision of the work by consultants, technical assistance to DWS in contract management and training of PNG engineers on the works; (b) improvement of road maintenance, including technical assistance and training of DWS and provincial governments staff by consultants; (c) improvement of rural transport, including technical assistance and engineering of priority road projects; (d) engineering of the Togoba - Wapenamanda road; and (e) procurement of traffic counting equipment. The main risk would be a failure to achieve the wide distribution of project benefits; the proposed project includes measures to minimize this risk. This document has a rtricted distribution and may be used by recipients only in the performance of theifofficial duties. Its contents may not otherwise be disclosed without World Bank authorization.   FOR OFFICIAL USE ONLY PAPUA NEW GUINEA THIRD HIGHWAY PROJECT Loan/Credit and Project Summary Borrower : Government of Papua New Guinea Amounts : Loan US$17.0 million Credit US$13.0 million Terms : Loan: For a period of 20 years, including a grace period of 5 years, with an interest rate of Credit: Standard Project Descripton : The main objective of the project is to support the economic and social development of the Central Highlands of PNG by providing low cost road transport among the provinces of the Central Highlands and between each province and the Port of Lae. Additional objectives are to train local engineers and contractors, improve road maintenance, and support improved planning and preparation of rural transport projects. The project consists of: (a) improvement and-paving of the Highlands Highway section between Kassam Pass and Daulo Pass (137 km), including supervision of the work by consultants, technical assistance to DWS in contract management and training of PNG engineers on the works; (b) improvement of road maintenance, including technical assistance and training of DWS and provincial governments staff by consultants; (c) improvement of rural transport, including technical assistance and engineering of priority road projects; (d) engineering of the Togoba - Wapenamanda road; and (e) procurement of traffic counting equipment. The main risk would be a failure to achieve the wide distribution of project benefits; the proposed project includes measures to minimize this risk. This document hs a rostricted 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 Local Total