Costa Rica - Highway Project

RETURN TO , ~\ , REPORTS DESI<' RESTRICTED VJITHIN ONE \\lEEK FILE Copy Rep 0 r t No. TO-294a TO (IDA) 14 This report was prepared for use within the Bank and the Association. It may not be published nor may it be quoted as representing their views. . The Bank and the Association accept no responsibility for the accuracy or completeness of the contents of the report. TNTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION APPRAISAL OF HIGHWAY PROJECT COSTA RICA October 4, 1961 Department of Technical Operations  COSTA RICA APPRAISAL OF A ;UGHl;IAY PRC'JECT --------------- TABLE OF COHTEr.i'TS suai\TARY i-ii I. mTRODUCTION 1 II. BACKGROUND mFDRl'1ATION 1 Geographic and Demographic 1 Occupation and Land Ovmership 1 Public Transportation System' 2 III. THE HIGHWAY SYSTEN J Classification and Condition of Roads 3 General HighwC'.y Hanagement 4 l'finistry of PuL1ic "l'lorks 5 Execution, Supervision and Naintenance of Roadworks 5 Traffic Growth and Characteristics 6 Highway Development Plans 7 IV. THE PROJECT 8 General Description 8 Studies, Design and Documentation 8 Estimates of Co:r:struction Cost 9 Execution of Project !dorks 9 Foreign and Local Components of Construction Cost 10 Construction, I'Iaintenance and Survey Equipment 11 Technical Advisory Assistance 12 Financing: Composition of Bank and Association Loan/Credit 12 v. ECOlWNIC JUSTIFICATION 14 Areas Affected by Road Improvements 14 Direct Economic Returns from Road Improv~aents 14 Additional Benefits from Road Improvements 16 Economic Benefits from Nev-r Road Construction 17 Higmlay Haintenance Investment 18 VI. CONCLUSIONS AND RECOHj\IENDATIONS 18  ANNEXES TABlES 1. Road Lengths and Classification, December 1960. 2. Average Annual Expenditure on Roads and Bridges by Different Authorities, 1956 - 1959 3. MinistF,f of Public vJorks Expenditure" 1955 - 1960 4. Vehicle Registration and Gasoline Consurr~tion, 1950 - 1964 5. First Stage (Four-Year) Highway Development PJan 6. Sources of Local Currency for First stage Highl"ray Development Plan 7. Design Standards B. Road Works in First Three Years of Highway Plan 9. Foreign Currency Component of Highway Construction Costs 10. Foreign Currency Investment in Construction, }'Iaintenance and Survey Equipment 11. Application and Sources of Project Funds 120 Direct Economic Benefits of Highway Improvements FIGUHF.B 1. llilinistry of Public vlorks; General Organization 2. Directorate of Public 1rJorks; HigmJay Department M\.PS 1. Costa Fica; Road and Rail Systems 2. Central Zone and l'letropolitan ~'irea  SUMMARY (i) The Government of Costa Rica has asked the Bank and the Association to assist in financing the first stage of a seven-year highway development program for the improvement and extension of the country's highvTay network. The foreign currency requirements of a suit.able pro~iect amount to US$ll million equivalent; this wouJd be the first transportation loan to Costa Rica by the Dank or the Association. (ii) The number of road vehicles in Costa Rica has more than tripled in the past ten yeClI's. The resulting increase in traffic volume has overloaded the capacity of a major part of the existing highway netvlOrk, and has caused damage to road surface and foundations. The situation has been aggravated by inadequate road maintenance in the past due mainly to the insufficier:.cy and poor condition of maintenance equipment and repair facilities. (iii) Extensive improvement "JOrks and some new highway construction vlOrks are urgently required to provide adequate facilities for present and expected future traffic. The proposed pro.iect provides for: a) the improvement of 64 0 lun (about one-third of the total) of existing nat2.0nal and regional roads, and the construc tion of 31 km of new roads; the total estimated cost of the lvorks is about US$13,,2 million equivalent of vJhich the foreign exchange component is about US$702 million equivalent; b) the purchase of mechanical equipment, spare parts and materials for high-tolay construction and maintenance to an amount of about US$3 million equivalent in foreign exchange; c) the foreign exchange cost of surveying instruments, en gineering studies, and consulting services, estimated at about US$0.5 million equivalent. (iv) The pro.iect is technically sound and cost estimates are realistic; it is adequately .iustified economically by the future savings in vehicle oper atirg costs which l~ll result from the improved road transport conditions. (v) The responsible executive agency is the 11inistry of Public l;orh:s; the organization is sound and staff are generally competent although perhaps som81