Oman - Highway Maintenance Project

Doc_ni of The World Bank FOR OFFICIAL USE ONLY Report No. 6210 PROJECT COMPLETION REPORT SULTANATE OF OMAN FIRST HIGHWAY MAINTENANCE PROJECT (LOAN 1441-OM) May 21, 1986 EMENA Projects Transportation Division 5198D 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.  FOR OFFICIAL US ONLY THE WORLD BANK Wa0shnton.D.C. 2033 USA. Olic. aW DMKeM.GuuIWuI Opau IvAdD ttan May 21, 1986 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on the Sultanate of Oman First Highway Maintenance Project (Loan 1441-OM) Attached, for information, is a copy of a report entitled "Project Completok- Report on the Sultanate of Oman First Highway Maintenance Project (Loan 1441-OM)" prepared by the Europe, Middle East and North Africa Regional Office. Under the modified system for project performance auditing, further evaluation of this project by the Operations Evaluation Department has not been made. Attachment This document has a restricted distribution nd may be used by recipients only In the performance of their olfcial dutks Its contents may not otherwise be disci without World Bank authorzation.  FOR OFFCIL UE ONLY PROJECT COMPLETION REPORT OMAN FIRST HIGHWAY MAINTENANCE PROJECT (LOAN 1441-OM) TABLE OF CONTENTS Page No. Basic Data Sheets ................ .... . (ii) H ighlights ....... (v) Is IN`RODUCTION AND BACKGROUND . ... , ...................... 1 II. PROJECT IDENTIFICATION, PREPARATION AND APPRAISAL ..... 2 II. IMPLEMENTATION ...........4.........4 IV. ECONOMIC RE-EVALUATION .................. 7 V. SUMMARY AND CONCLUSIONS ................. ....9 ANNEX 1 - Estimated and Actual Cumulative Disbursements..... 11 2 - Application of Loan Proceeds....................... 12 3 - Expenditure on Routine Maintenance................. 13 4 - Vehicle Operating Cos t s 14 5 - Actual and Forecast Estimates of Project Costs..... 15 6 - Borrower Cvmments......................., ,, , ,. 16 FIGURE Estimated and Actual Progress and Disbursements... 17 MAP IBRD 19226Rl Thb document ha a uericd dirbutbon and may be usd by rfecpin onty in th pfofnman of ther officia dutie Its contnts may not othewis b dicloed whout World Bank authoriudon.  (i) PROJECT COMPLETION REPORT OMAN FIRST HI.HWAY MAINTENANCE PROJECT - LOAN 1441-OM PREFACE This project completion report describes the preparation and imple- mentation of the First Highway Maintenance Project for which Loan 1441-OM of US$15.0 million was approved in May, 1977. The project was planned to be com- pleted in September, 1981 but was not fully disbursed until May, 1985 mainly because of the design changes of the workshops. There were no cost overruns and the project met its objectives. The report was prepared by the Transportation Division of the Europe, Middle East and North Africa Projects Department. It is based on a study of information in the project file, supervision missions, and the cooperation of the Oman authorities and its consultants in providing the necessary data. In accordance with the revised project performance reporting procedures this report has been read in the Operations Evaluation Department (OED) but the project was not audited by OED staff. The draft Completion Report was sent to the Borrower for comments; their reply is shown as Annex 6.  (ii) PROJECT COMPLETION REPORT OMAN FIRST HIGHWAY MAINTENANCE PROJECT - LOAN 1441-OM KEY PROJECT DATA Actual or Current Item Appraisal Expectation Estimates Total Project Cost (US$million) 47.0 47.0 Overrun (2) 0 0 Loan Amount (US$million) 15.0 15.0 Disbursed - 15.0 Cancelled - nil Repaid (May 31, 1985) - 6.2Z5 Outstanding-I4ay 31, 1985 - 8.75 Date Physical Components Completid 03/31/81 01/31/85 Proportion Completed by Above Date (2) 70 100 Time Overrun (2) - 94 probably larger Economic Return (Z) 44 than 44 Institutional Performance Good Good CUMULATIVE ESTIMATED AND ACTUAL DISBURSEMENTS (US$ million) FY78 FY79 FY80 FY81 FY82 FY83 FY84 FY85 Estimated 3.8 8.4 13.4 15.0 15.0 15.0 15.0 15.0 Actual - 1.3 6.5 11.1 12.2 12.3 12.5 15.0 Actual/Estimated (2) 0 15 48 74 81 82 83 100  (iii) PROJECT COMPLETION REPORT OMAN FIRST HIGHWAY MAINTENANCE PROJECT - LOAN 1441-OM OTHER PROJECT DATA Actual Item Original Plan Revisions Estimates First Mentioned in Files - - 1/06/76 Government's Application - - 3/28/76 Negotiations 4/27/77 - 4/27/77 Board Approval 5/31/77 - 5/31/77 Loan Agreement No delay - 6/20/77 Effectiveness Date No delay - 9/14/7? Closing Date 9/30/81 9/30/82 6/30/84 9/30/83 Borrower Sultanate of Oman Executing Agency Ministry of Communications Borrower's Fiscal year January 1 to December 31 Follow-up Project Loan Number 2086-OM Amount US$15 million Loan Agreement Date 3/31/82  (iv) PROJECT COMPLETION REPORT OMAN FIRST HIGHWAY MAINTENANCE PROJECT - LOAN 1441-OM Mission Data Report Item Month/Year No. of Days No. of People Man-Weeks Date Identification Consultant's Interim Report under Loan 985-OM Jan. 1976 Preparation 5/76 5 2 2 NR 11/76 15 3 9 11/29/76 Appraisal 1/77 13 4 6 5/17/77 Total 33 17 Supervision I 2/78 5 1 1 3/29/78 II 11-12/78 10 3 6 12/22/78 III 4/79 10 2 4 5/03/79 IV 10/79 9 2 4 10/26/79 v 2/80 8 3 5 4/04/80 VI 6/80 11 3 7 7/17/80 VII 11/80 8 1 2 11/27/80 VIII 3/81 5 1 1 4/03/81 IX 8/81 7 2 3 9/04/81 X 3/82 5 3 3 4/14/82 XI 9/82 5 2 2 10/22/82 XII 3/83 3 2 1 4/14/83 XIII 9-10/83 4 2 2 11/02/83 XIV 5/84 5 3 3 1/27/84 XV 9/84 7 2 3 10/16/84 XVI 5/85 5 1 1 6/18/85k' Total 48 1/ Project Completion Report  (v) PROJECT COMPLETION REPORT OMAN FIRST HIGHWAY MAINTENANCE PROJECT LOAN 1441-OM HIGHLIGHTS This project was the first Bank lending operation in Oman's transport sector following the Education Project (Ln. 980-OM) 1974, and the Technical Assistance Loan (985-OM) 1974, which included transport sector studies and helped to identify this project. Salient points arising from the project were: (i) an effective training program was established for Omani staff of the Directorate General of Roads ..(DGR) and the first stage training center was completed: most of these staff trained (about 90%) remain with the DGR (para. 3.04); (ii) technical and economic project evaluation methodologies were introduced and their use demonstrated in the preparation of the 1981-85 Five Year Plans for Highway Tnvestment and Highway Maintenance (para. 3.04); (iii) the technical assistance component together with workshop con- struction made the first critical step forward in promoting an effective program for and Government commitment to effective highway maintenance (para. 3.05); (iv) the development of a modern, self-sustaining highway management department is a lengthy and gradual procedure and often will take much longer than has been estimated at appraisal; technical assistance in particular should be planned over a long term (para. 3.02); and (v) Since May 1985 the authorities have the power to control axle loads so as not to exceed the highway system's design limits. The introduction of appropriate legislation was undertaken within the regional framework of the Gulf Cooperation Council (para. 3.06).  (vi) In an active partnership between the Bank and the Oman Government, useful progress has been made in laying the foundations for an effective high- way maintenance system and highway planning strategy. The project was an important first step in developing self-sustaining institutions for implement- ing transport sector strategy but it will clearly be some time before Oman will be able to rely entirely on its own resources. Until then active Bank participation through project supervision and advice will be an important technical assistance input.  PROJECT COMPLETION REPORT SULTANATE OF OMAN FIRST HIGHWAY MAINTENANCE PROJECT - LOAN 1441-OH I. INTRODUCTION AND BACKGROUND 1.01 Since 1970 Oman has experienced rapid economic growth initiated by an enlightened Government and sustained by growing oil revenues. It should be recorded in this context, however, that although the per capita income was growing at 3.82 per annum between 1970 and 1979 the per capita capital stock started from a very low base and even though the 1983 per capita income was estimated at US$6090 the per capita capital stock is still low. 1.02 Road transport is the major mode of domestic transport in Oman and is of growing importance in commercial and social relations with neighboring countries of the Gulf Region. The road system consists of a paved network which is dense in the capital area around Muscat and links most of the main towns. In 1984 it amounted to 3,267 km compared with 10 km in 1970. The ne'- work of tracks and gravel roads increased from about 1,700 km to 9,748 km dur- ing the same period. The vehicle fleet has grown from an estimated 31,500 in 1975 to about 180,000 in 1984, an annual growth rate of about 21%, and the size and weight of commercial vehicles has also increased. 1.03 The World Bank assisted the Government in reviewing highway syst-m needs as part of a technical assistance project (Loan 985-OH) and since then has participated in two highway maintenance projects, Loan 1441-OM which is the subject of this report and Loan 2084-OH which is ongoing with anticipated completion in December 1985. A Third Highway Maintenance Project was ap- praised in December 1984.  -2- II. PROJECT IDENTIFICATION, PREPARATION AND APPRAISAL A. Preparation 2.01 At the request of the Government in 1972, the World Bank prepared a technical assistance project to finance studies of the needs of the agricultural and transport sectors. The project, Loan 985-OM, was approved by the Board in April 1974. Consultants were employed and they identified as a major need the establishment of an effective highway maintenance organization and strategy together with a program for training Omani highway personnel. Based on this study and with Government's support, the First Highway Maintenance Project was prepared and appraised in January, 1977. This was the first Bank financed project in Oman's transport sector. B. Project Objectives 2.02 The World Bank recognized in the early 1970's that, although Oman was developing its wealth rapidly, the absence of adequate skilled manpower at all levels and in most non-oil sectors was going to create major operational and developmental bottlenecks. Consequently, the Bank's lending strategy, which encompassed the Highway Sector, focussed on the need to supply technical assistance and to encourage institution building whilst providing an important transfer of resources. This has continued to be the strategy context in the Second and proposed Third Highway Maintenance Projects. 2.03 As part of this strategy the consultants to the Roads Department (RD) of the Ministry c& Communication (MC) employed under Loan 985-OM, developed the Maintenance, Training, Technical Assistance Program which provided the basis for the First Hight:Ay Maintenance Project. The objectives of the project were: (a) to provide immediate physical and manpower resources to assist the Government in planning, implementing improvements and in particular maintaining the highway system; (b) to plan and to implement a training program in order to train Omani staff in highway maintenance operations; and (c) to introduce modern highway planning techniques and data col- lection systems, including highway maintenance cost accounting, to support these techniques.  -3- C. Project Appraisal 2.04 The project was appraised in January, 1977. It covered a three year tranche, 1978-80, of Oman's 1978-82 Highway Maintenance Plan.l' The project components were: (a) procurement of highway maintenance equipment and spares; (b) construction and operation of highway maintenance workshops2' including equipment and spares; (c) the construction and operation of a Roads Department training center including a three-year staff training program; (d fuel and lubricants for routine highway maintenance; (e) soils laboratory, survey and commurications equipment; and (f) consultants services to (i) establish and manage the routine highway maintenance program; (ii) establish and implement a com- prehensive training program for Omani staff; and (iii) strengthen the administrative, planning and operational capabilities of the Roads Department. l/ The Plan was subsequently -changed to cover the period through 1980 with a new five year plan starting in 19P1. 2/ Located at Azaiba, Salalah, Ibri, Ibra, Sohar and Nizwa together with the existing workshop at Haima.  - 4 - III. IMPLEMENTATION 3.01 Implementation of the project, though on the whole satisfactory, was slower than anticipated due primarily to four factors: - the project was the first Bank-financed project in this sector, and the learning process and unfamiliarity with Bant guidelines and procedures slowed project implementation; - on recruitment, Oman has a high security profile which tends to slow down the approval of the technical assistance candidates; - budgeting regulations atre very strict and this, whilst being useful for financial discipline, hampers the response to program modifications; and - in 1980, although the major part of the Project had been com- pleted, a revision was made to the design of workshops at Ibri, A'zaiba, Salalah, and Al-Ghaliel in order to improve working conditions. This required an extra phase of design, tendering, supply and construction which caused a major slow-down in dis- bursements during the period 1980 to 1984 (see Figure 1). 3.02 Four important lessons are highlig!ited: (a) the development of a modern self-sustaining highway management department will take much longer than was originally anticipated and technical assistance in particular should be planned over a long term; (b) there will be a changing emphasis in the type of work that has to be carried out as the road system evolves: more attention will eventually have to be paid to periodic maintenance and pavement strengthening, and solutions will have to be found for meeting very heavy traffic demands associated with the urban areas; (c) regional characteristics should be taken into account in design- ing the training program: the needs of the Southern Region based on Salalah require particular attention, even to the extent of establishing a Southern training center; and (d) effective highway maintenance planning can only take place given a reliable cost data base and this required greater efforts to be made to establish a sound cost accounting system in the Roads Department: this in particular is being followed up under the Second Highway Maintenance Project (Loan 2084-OM). 3.03 There has ben, however, a noticeable improvement in the speed of project implementation during the Second Highway Project (Loan 2084-ON) indi- cating that Omani personnel are becoming more experienced in working with the Bank and are developing their technical and administrative skills and under- standing of Bank procedures.  - 5 - 3.04 The Project's technical assistance components, for which two firms of consultants were employed, one to operate the maintenance management and the training program and one to provide engineering assistance, were satisfacto- rily implemented. Comprehensive Five Year Plans for 1981-1985 covering high- way investment and maintenance were prepared and as part of this, the economic evaluation of highway projects and maintenance were introduced. Appropriate training courses were designed and the Training Center was built and staffed, although progress in training was relatively slow until the Second Highway Project started. The training program centered on teaching basic skills and upgrading already partly-trained employees. About 90% of the 275 employees trained under the project were still employed by the Directorate General of Roads in 1984. Maintenance management, highway planning and training activi- ties are being satisfactorily and energetically continued under the Second Highway Maintenance Project and are recommended for the proposed Third Highway Maintenance Project. Both firms of consultants performed satisfactorily but one performed particularly well and has been retained under the Second Highway Maintenance Project to cover all aspects of technical assistance thus provid- ing continuity. 3.05 The program of road maintenance workshop construction and procurement of maintenance equipment was satisfactorily implemented. The work centres and workshops, together with the strong technical assistance component, have per- mitted an improved level of routine maintenance to be carried out by the DGR's direct labour units. This work has included regravelling and grading, includ- ing reshaping, minor patching and repairs of asphalt surfaces, shoulder main- tenance, drainage, side-slopes, road signs and markings. The thrust of the project, which was to carry out this work over the 6425 km network for which the DGR was responsible in 1978, was successfully achieved. Adequate finance was made available (see Annex 3) and averaged about US$1,000 km p.a. in 1978. Moreover, maintenance resources have continued to keep pace in real terms with the growth in the DGR road network. This success has, in turn, stimulated interest in highway maintenance at local level and within central government. However, as the highway system is expanded and upgraded and the maintenance i-qtitutions are developed to keep pace with this, the need for improved f *ilities, including workshops, and work centers will also grow. Hence, the h-ghway maintenance infrastructure facilities completed within the project should be considered ao more than a first stage in a longer term program. 3.06 Two objectives, however, were not reached within the duration of the First Project: (i) Axle Load Control: The Omani traffic ordinance, while governing vehicle dimensions, only recently (May 1985) started to regulate vehicle weights and axle loads, although control of these was required in the Loan Agreement. A Government letter has also been sent in 1985 to all vehicle importers requiring them not to import vehicles that do not conform to certain maximum weight limits, which are based on Omani pavement and bridge design  -6- criteria. The Gulf Cooperation Councill' is currently at- tempting to introduce regional vehicle construction and use reg- ulations, which will include controls on axle loads, and the new Omni legislation has been framed to conform to regional recom- mendations; and (ii) Materials Testing: Although some soils testing equipment has been procured under the project there are as yet no adequate Roads Department materials testing facilities. Such materials testing that is carried out by the consultants on behalf of the Roads Department, is undertaken by borrowing facilities from one or two contractors. This is not a satisfactory situation, especially if greater use is to be made of locally available materials, and the proposed Third Highway Maintenance Project aeeks to correct it through constructing, equipping and staffing a comprehensive testing laboratory. 3.07 The Loan Closing Date was extended from September 1981 to June 1984 and full disbursement of the loan was delayed from June 1981 to May 1985 to cover disbursements for commitments made prior to the revised Closing Date. The project delays stemmed principally from delay in getting water and elec- tricity to workshop sites and subsequently, modifications which were required to be made to the original design of workshops to improve protection from Oman's harsh weather conditions. The modifications entailed the design of stiffeners for the main steel structures to counteract increased wind loadings with supplementary procurement for the additional protective works. It took some considerable time to agree guarantee arrangements between the original supplier and the new cladding contractor. Slow familiarization with Bank pro- cedures for appointment of consultants, procurement and reimbursement and slower than expected start and build-up of consultants services (mostly due to lengthy administrative and recruitment processes) also contributed to the delay. 3.08 The disbursement profile is given in Annex 1 and Figure 1. Delays have essentially occurred as a result of project component redesign and lengthy administrative processes, which are being addressed in the Second Project. 1/ The Gulf Cooperation Council is a regional political and economic grouping of six states, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates; through the agreement of its Council of Ministers (repre- senting individual states) it has the authority to take and enforce cer- tain actions including regional legislation.  - 7 - IV. ECONOMIC RE-EVALUATION 4.01 The appraisal indicated that the routine maintenance program which was to be supported by the project would yield benefit:cust ratios of between 5.8:1 to 6.0:1 depending on the discount rate used in the calculations The rate of return was estimeted at 44%. Without base data on the original road surface condition and traffic flows supplemented by major field-work to re- measure conditions and to undertake traffic counts, detailed recalculation is not possible. The absence of reliable traffic counts except for major high- ways and also the currently sketchy information on the distribution of mainte- nance funds by class of road, is an important planning and control deficiency which is being addressed under the ongoing Second Highway Project and the pro- posed Third Highway Project. Nonetheless, the annual growth in Oman traffic during the project has been about 15% for light vehicles and 101 for medium and heavy vehicles and the routine maintenance program has been generally satisfactorily implemented and there is no reason to suspect that final eco- nomic benefits will be less than estimated at appraisal. 4.02 The table at Annex 3 shows the estimated real growth in routine main- tenance together with the appraisal estimate of needs for 1978 to 1982. This comparison indicates that allocated maintenance funds were of the right magnitude. Furthermore, whilst the paved road system and the graded gravel road system have expanded by about 142 p.a. and 61 p.a. respectively during the period 1976 to 1984 at the same time the real routine maintenance budget has grown at about 14% p.a., thus more than keeping pace with the growth in the maintained highway system. However, it is not possible to evaluate the effect of the parallel growth in traffic (also between 10 and 15%) and conse- quently an accurate assessment of the adequacy of the routine maintenance bud- get cannot yet be made, and must await the improvement of the data base. Nevertheless, it is clear that the need for highway maintenance is supported by the Omani technical and financial authorities. 4.03 Any attempt to evaluate the benefits derived from improved highway maintenance in Oman during the period in question is going to be obscured by the very large increase in the kilometrage of paved roads which carry the bulk of traffic. Thus, the examples given below are only indicative of what the reevaluated benefits cost ratio would be based on certain assumptions. Paved Roads - The assumptions are: (i) original traffic flow of 2,000 vpd with 60% cars, 201 light com- mercial and 201 trucks with a 10% p.a. growth rate: the average flow on Oman paved roads is estimated at just over 3000 vehicles/day although the distribution is highly skewed; (ii) in the absence of routine maintenance a deterioration in condi- tion and hence vehicle operating costs (voc) from 1.00 to 1.25 over five years: although this may seem rather rapid deteriora- tion, the occasional but very severe rains and resulting erosion could have this effect; (iii) annual "ideal" routine maintenance cost of OR 850 per km; and  - 8 - (iv) Base vehicle operating costs in 1984 prices on level, tangential and good pavement condition roads as given in Annex 4. Using these data and assumptions and applying a discount factor of 152, the benefit:cost ratio over a five-year maintenance period 1979-83 is 7.84. Gravel Roads - The assumptions are: (i) original traffic flow 400 vpd consisting of 40b cars, 40% light commercial vehicles and 20% trucks with an annual growth rate of 10X; 400 vpd may be high for an average figure but some recent sample counts in the region around the Capital Area indicate flows of over 1000 vpd on some gravel roads; (ii) in the absence of maintenance (including an element of regravel- ling) a deterioration in condition and hence voc from 1.0 to 2.14 over a five year period; (iii) annual "ideal" maintenance cost, including regravelling as needed, OR 1,000; and (iv) base vehicle operating costs from Annex 4. Based on these data and assumptions and applying a discount factor of 15%, the benefit:cost ratio over the five year maintenance period is 9.40, exceeding appraisal estimates. The overall benefit:cost ratio is estimated at 9.00 which clearly demonstrates the project's economic viability with a rate of return greater than that estimated at appraisal. Even assuming a reduction in benefits of 50Z (lower traffic flows and lower rate of deterioration in the "do nothing" case) the project would still have achieved rate of return similar to that estimated at appraisal. 4.04 Under the proposed Third Highway Maintenance Project it is intended to (a) introduce a modern pavement management system,; (b) carry out objective assessments of pavement conditions; and (c) develop the highway maintenance cost accounting system; and this will permit the authorities to carry out an in depth analysis of the efficiency of the maintenance program and the evalu- ation of alternative strategies.  - 9 - V. SUMMARY AND CONCLUSIONS 5.01 The project was satisfactorily implemented and significant progress was made towards achieving the goal of introducing for the first time a modern and dynamic highway maintenance system to a country. The delay of more than three and a half years in completion was largely due to design changes of workshops. By the original closing date (9/30/81), already 76Z of the loan was disbursed (Annex 1). When dealing with sector administrations unfamiliar with Bank procedures, special provision for technical assistance and training should be made. Guidance to the borrower's project staff in the required administrative skills and Bank procedures during project preparation and implementation also need to be provided. Whilst this was attempted under the project, more efforts should have been made in this direction including a shor; procurement seminar following appraisal or negotiations. 5.02 Taking account of the basic level of institutional development, prog- ress towards achieving a self-sustaining maintenance operation will be slow and will require support, especially technical assistance, for some time. The training program is working well but it will be several years, before Oman will be able to supply most of its manpower needs in the highway sector espe- cially at professional level. 5.03 There is a clear need in the early stages of sector development to institute and to maintain the effective collection and storage of essential data, in this case especially highway inventory and traffic data and costing of engineering operations. Without these data a modern planning and implemen- tation system cannot be properly effective and technical assistance inputs will not yield their full potential. 5.04 In addition to continuing the drive towards achieving the objective of a self-sustaining and efficient maintenance system, including support infrastructure such as modern maintenance bases and adequate materials testing facilities, the examination of the First Highway Maintenance Project identi- fies the need to follow up on the question of vehicle axle loads. Either limits should be established, given the backing of law and enforced, or, pave- ment design standards should be employed that can cater for high axle loads, and the road users should contribute equitably for the incremental construc- tion costs. The proposed Third Highway Project should address this matter in the context of regional proposals. The World Bank Role and Contribution 5.05 While the Bank's financial assistance was clearly welcomed the main contribution has been, and remains, in the development of a rational institu- tional structure to (a) support periodic and routine maintenance planning and implementation; (b) undertake long term highway planning for both maintenance and investments; (c) make greater use of modern project evaluation techniques in establishing priorities and (d) develop an appropriate training program that will gradually reduce Oman's dependence on expatriate personnel. It is clear that active Bank supervision is welcomed, serves a very useful function and should eventually evolve into a strong technical assistance program.  If _-/ 5pv/  - 11 - ANNEX 1 PROJECT COMPLETION REPORT SULTANATE OF OMAN FIRST HIGHWAY MAINTENANCE PROJECT ESTIMATED AND ACTUAL CUMULATIVE DISBURSEMENTS (U.S.$000) IBRD FISCSL YEAR SAR DISBURSEMENT ACTUAL ACTUAL DISBURSEMENTS AND QUARTER SCHEDULE DISBURSEMENTS AS 2 ESTIMATED 1977/78 March 31, 1978 1,700 0 June 30, 1978 3,800 0 1978/79 September 30, 1978 5,300 _ 0 December 31, 1978 6,300 937 14.8 March 31, 1979 7,400 1,104 14.9 June 30, 1979 8,400 1,261 '15.0 1979/80 September 30, 1979 8,900 1,261 14.2 December 31, 1979 9,700 1,412 14.5 March 31, 1980 11,600 1,599 13.8 June 30, 1980 13,400 6,649 49.6 1980/81 September 30, 1980 14,000 6,830 48.8 December 31, 1980 14,500 7,272 50.1 March 31, 1981 15,000 7,492 49.9 June 30, 1981 11,064 73.8 1981/82 September 30, 1981 --- 11,363 75.7 December 31, 1981 11,917 79.4 March 31, 1982 - 12,069 80.5 June 30, 1982 12,165 81.1 1982/83 September 30, 1982 - 12,258 81.7 December 31, 1982 - 12,284 81.9 March 31, 1983 12,326 82.2 June 30, 1983 12,398 82.6 1983/84 September 30, 1983 - 12,450 83.0 December 31, 1983 12,469 83.1 March 31, 1984 12,488 83.2 June 30, 1984 12,493 83.3 1984/85 September 30, 1984 --- 12,493 83.3 December 31, 1984 12,680 84.5 March 31, 1985 - 13,667 91.1 June 30, 1985 --- 15,000 100.0  - 12 - ANNEX 2 PROJECT COMPLETION REPORT SULTANATE OF OMAN FIRST HIGHWAY MAINTENANCE PROJECT LOAN 1441-OM APPLICATION OF LOAN PROCEEDS (US$000) Categor US$ 1. Highway Maintenance (a) Maintenance equipment and spares 3,527,281.17 (b) Workshop construction 8,147,863.93 2. Training (a) Classroom Construction and fittings 294,142.83 (b) Overseas fellowships 73,612.15 3. Consultants' Services (a) Maintenance management services 2,048,903.18 (b) General technical assistance services 908,196.74 Total 15,000,000.00  PROJECT COMPLETION REPORT OMAN FIRST HIGHWAY MAINTENANCE PROJECT LOAN 1441-014 EXPENDITURE ON ROUTINE MAINTENANCE (USOOO) AY. Annual 1978 1979 1980 1981 1982 1983 1984gY % Increase Building MaterialsY Price Index (1977-100) 113 115 126 128 124 120 122 --- Maintenance Expenditure (current prices) 6,194 8,488 10,257 9,346 12,005 13,048 14,800 15.6 Maintenance Expenditure (1977 prices) 5.481 7,380 8,140 7,301 9,681 10,873 12,131 14.1 Appraisal Estimate of Maint. Needs (1977 prices) 11,308 5,646 7,890 6,117 6,289 -- __ --- 1/ Oman has only recently started to develop reliable sectorial price indices. y Estimate.  - 14 - ANNEX 4 PROJECT COMPLETION REPORT OMAN FIRST BIGHWAY MAINTENANCE PROJECT LAN 1441-OM Vehicle Operating Costs (Baizas per veh./km) Derived from consultants 1985 study and cost updating for the cost of vehicle operation on level, tangental rows in good surface condition for their class. Vehicle Type Asphalt Gravel Tracks Car (2 litre) 45 68 84 Light Commercial Vehicle (1-2 tons) 60 94 113 Medium Commercial Vehicle (7-tons) 148 242 287 Heavy Commercial Vehicle (18-tons) 214 324 397  PROJECT COMPLETION REPORT OMAN FIRST HIGHWAY MAINTENANCE PROJECT LOAN 1441-OM Actual and Forecast Estimates of Bank-financed Project Components (US$ million) Contract Actual Cost as % of Actual Cost Amount SAR Estimate of Cost Forecast Estimate Contract Amount LOC FX TOTAL LOC FX TOTAL X X 1. Highway Maintenance (a) Maintenance equipment and spares 0.06 3.53 3.59 3.59 - 7.20 7.20 50 100 (b) Workshop Construction 2.04 8.15 10.191/ 7.03 1.44 5.76 7.20 141 145 2. Training (a) Classroom construction fittings 0.07 0.29 0.36 0.33 0.12 0.46 0.58 62 120 (b) Overseas fellowships - 0.07 0.07 0.07 - 0.29 0.29 24 100 S 3. Consultants' Services la) Maintenance management 0.65 2.05 2.70 3.00 0.83 2.36 3.19 85 90 (b) 6eneral technical assistance 0.23 0.91 1.14 1.24 0.42 1.31 1.73 66 92 TOTAL 3.05 15.00 18.05 15.26 2.81 17.38 20.19 89 118 jj Includes additional works.  - 16 - t:i"iS ~~~AN=B 6 Sultanate of Oman ' 61 mhnbU of Commuol 'a1J 5J MUSCAT ClaOm" of e MWidw R@, :_lr1A/j6/86 "_ ,,e Awil, 1986 NV. YW Wtb, Dirotor Opeatia Byaluatimn Departuent 1818 E. stwo.t Wahinatan DO 20&33. USA Ater Compiments , PROJECT COMPLIION REPOR - OMN FIRST HIGHWAY m&inDuan IOC We ha,. one tomu the rportt rrfemd to above sent vaer ooGow of yoM lotter dated 18th February 1986 .A we will observe the valuable remars overed In the report in future Wo note vith satisfaotion man appmo atiom the effort =doe In Wrepi the report. yours siuoere2yo )t ~OF CCQIICATIQllS act .,I. The Undersecretary for Rodets Ports & Pblo port Affairs, loW cot Direotor General ot Roads. co I File  OMAN RRSI HGHWAY MAINWENANC PROJECT (Loan 1441-OM) Prce Compa n Repoxt EsCBinated and Ackxd PtWM and DiauemeniC ERCENI~~~~~~~~~~~~~~~~~~~~~~fAOA OBRDEI Arw'RA{AL / i151wU