Upper Volta - Fourth Highway Project

Document of The World Bank Fi 0 FOR OFFICIAL USE ONLY Report No. P-3076-UV REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF UPPER VOLTA FOR THE FOURTH HIGHWAY PROJECT May 28, 1981 | This document has a restricted distribution and may be used by recipients only In the performance of I their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - CFA Franc (CFAF) SDR 1 - US$1.22 - CFAF 287 US$ 1 - CFAF 235 WEIGHTS AND MEASURES 1 metric ton - 0.98 long ton (2,205 lbs.) 1 hectare (ha) - 2.47 acres 1 kilometer - 0.62 mile 1 meter - 3.28 feet ABBREVIATIONS BPP : Bureau of Planning and Programming CFPTP: Center for Technical Training DETN : Directorate for Design and New Works DGTP : General Directorate of Public Works DM Directorate for Equipment EDF : European Development Fund FAC : French Aid Agency FRU : Feeder Road Unit MTPTU: Ministry of Public Works, Transport and Urban Development ORD : Regional Development Organization RAN : Railways Authority FISCAL YEARS Government: January 1 - December 31 Project: January 1 - December 31  FOR OFFICIAL USE ONLY UPPER VOLTA FOURTH HIGHWAY PROJECT CREDIT AND PROJECT SUMMARY Borrower: The Republic of Upper Volta Amount: Special Drawing Rights 37.7 million (US$46.0 million) Terms: Standard Project Description: The main objectives of this project are to further improve the Ministry of Public Work's (MTPTU) maintenance operations, to provide better access to rural areas and to strengthen MTPTU-S institutional capacity. Inadequate maintenance budget allocations and lack of sufficiently qualified administrative, technical and managerial personnel have caused national and secondary roads to begin to deteriorate. The proposed project will help overcome this situation by financing: (i) the renewal of the maintenance equipment fleet; (ii) the construc- tion of workshops and office buildings; (iii) the incremental costs of fuel, spare parts and materials for routine mainte- nance; (iv) the costs of fuel, spare parts and materials for the periodic maintenance of about 450 km of gravel roads; (v) the rehabilitation of about 280 km of gravel roads; (vi) the resealing of about 320 km of paved roads; (vii) the construction and initial maintenance of about 1,640 km of new and existing feeder roads; and (viii) technical assistance, consultants, training and scholarships to help overcome personnel constraints. Benefits: Primary beneficiaries of the proposed project would be rural populations since the major components are complementary investments to regional rural development projects, e.g., Bougouriba. The proposed road maintenance and rehabilitation would preserve existing capital assets and result in significant road user savings. The technical assistance components will lead to the sound administration of a financially viable maintenance program. Risks: The project presents some financial and institutional risks. If Government s resources are strained to the point where it fails to provide adequate funds for the road maintenance budget, the program envisaged under the project could fall short of its objective and the economic return on the invest- ment and road rehabilitation, would be lower. Furthermore, the proposed project will require close coordination between programming and execution of operations, e.g., the timely provision of manpower and materials. These risks will be reduced through annual review and the provision of appropriate technical assistance. 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 Cost: Local Foreign Total ------------US$ million---------- 1. Procurement of Equipment for Road Maintenance and Construction of Feeder Roads 6.0 9.5 15.5 2. Workshop and Office Construction, Equipment and Furnishings 1.5 2.0 3.5 3. Incremental Cost of Routine Maintenance 1.8 2.7 4.5 4. Periodic Maintenance of 450 km of Gravel Roads by Force Account 2.4 2.9 5.3 5. Rehabilitation of 280 km of Gravel Roads by Contractor 2.3 3.4 5.7 6. Resealing of about 320 km of Paved Roads by Contractor 2.7 5.0 7.7 7. Construction and Maintenance of Feeder Roads 3.3 4.2 7.5 8. Consultant Services, Scholar- ships and Training 1.9 5.4 7.3 Total Base Costs at early 1981 prices 21.9 35.1 57.0 Contingencies (i) Quantity 0.9 1.5 2.4 (ii) Price 5.2 8.4 13.6 Total Project Costs 28.0 45.0 73.0 - 1/ Of which US$16.3 million taxes. Financing Plan: IDA Government Netherlands Total