Dominican Republic - Third Road Reconstruction Project

Document of The World Bank - FOR OFFICIAL USE ONLY Report No. P-3788-DO REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$35.8 MILLION TO THE DOMINICAN REPUBLIC FOR A THIRD ROAD RECONSTRUCTION PROJECT June 26, 1985 This document has a resticted distributin and may be used by recipients only in the perfiormance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Dominican Peso = DR$ US$1.00 = DR$3.00 (Estimated annual average of the f:Loating exchange rate for 1985) FISCAL YEAR January 1 - December 31 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) 0.62 mile (mi) 1 kilogram (kg) 2.20 pounds (lb) I square kilometer (km2) = 0.386 square mile (sq. mi) I metric ton (m ton) = 1.1 US short ton (sh ton) 1 liter (1) = 0.264 gallon (gal) ABBREVIATIONS APD - Dominican Port Authority CEA - State Sugar Council ERR - Economic Rate of Return FE - Foreign Exchange ICB - International Competitive Bidding IDB - Inter-American Development Bank IMF - International Monetary Fund IVA - Value Added Taxes LIB - Limited International Bidding LCB - Local Competitive Bidding ONAPRES - National Budget Office ONATRATE - National Office for Land Transportation ONP - National Planning Office OPD - Office of Programming and Development SEOPC - Secretariat of State for Public Works and Communications STP - Technical Secretariat of the Presidency UNDP - United Nations Development Program USAID - United States Agency for International Development  FOR OFFICIAL USE ONLY DOMINICAN REPUBLIC THIRD ROAD RECONSTRUCTION PROJECT LOAN AND PROJECT SUMMARY Borrower: The Dominican Republic Amount: US$35.8 million equivalent Terms: Repayable over 17 years, including four years of grace, at the standard variable interest rate. Project Description: The proposed project consists of: (i) completion of road reconstruction works initiated under the Second Road Maintenance and Reconstruction Project (Loan 1784-DO); (ii) purchase of equipment, tools and spare parts for the road maintenance fleet; (iii) technical assistance to improve the planning, programming and executing capacity of the Secretariat of State for Public Works and Communications (SEOPC); (iv) technical assistance to the domestic contractors and SEOPC staff to improve road paving techniques; (v) technical assistance to SEOPC for maintenance operations and training including support to SEOPC's maintenance t:raining school; and (vi) construction and improvement of about 100 km of rural roads using appropriate construction techniques. RJisks: No major technical risks are involved in the implementation of the project. The only significant risk is related to the overall weak fiscal situation of the country and the possible difficulties to provide, on time, the required counterpart funds. This risk is being reduced by the provision of a revolving fund for local currency requirements. This document ha a restricted distribution and may be used by recipients only in the performaice | of their official duties. Its contents may not otherwise be disclosed without World Bank authorizition.  - ii - LOCAL FOREIGN TOTAL ----------US$ million- - ProJect Costa/: Road Reconstruction 7.5 17.4 24.9 Rural Road Improvements 0.5 1.1 1.6 Maintenance Equipment, Tools and Spare Parts 0.3 7.1 7.4 Consulting Services 1.9 2.6 4.5 Total Base Costs 10.2 28.2 38.4 Price Contingencies 3.5 2.9 6.4 Total Project Cost b/ 13.7 31.0 44.7 Financing Plan Government 8.9 8.9 IBRD 4.8 31.0 35.8 Total 13.7 31.0 44.7 Estimated Disbursements: Bank FY 1986 1987 1988 1989 -------