Honduras - Eighth Highway Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 7107 PROJECT COMPLETION REPORT HONDURAS EIGHTH HIGHWAY PROJECT (LOAN 1901-HO) February 2, 1988 Latin America and the Caribbean Regional Office 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.  JO OVmL ONLY THE WOULD BANK Washmnton, D.C. 20433 U.S.A. 0Oke i DWOqW-C.ewqi 0peusiaw IwvAicat February 2, 1988 NEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Hlonduras Eighth Highway Project (Loan 1901-HO) Attached, for information, is a copy of a report entitled "Project Completion Report on Honduras Eighth Highway Project (Loan 1901-HO)" prepared by the Latin America and the Caribbean Regional Office. Further evaluation of this project by the Operations Evaluation Department has not been made. Attachment j | This document has a restrcted dstribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Dank authorization.  FM anIICIAL U1 ONLY PROJECT COKPLETION REPORT NONDURAS EIGHTH HIGHWY PROJECT (LOAN 1901-NO) TABUE Of CONTENTS Pagn No. PREFACE .. ...... . .... . . HA SIC DATA S.EET ............................ ...... ii HIGHLIGHTS .................*** iv I. PROJECT OBJECTIVES, DESCRIPTION AND IMPLEMENTATION 1.......... I II. ECONOMIC REEVALUATION ........................................... 3 III. CONCLUSIONS ....... ........... .****** 4 TABLES 1. Comparison Between Appraisal Estimated and Actual Costs ..... 6 2. Secondary Road Improvement - Sumary of Economic Reevaluation 7 3. Rio Dulce-El Porvenir, Economic Reevaluation ................ 8 4. Rio Dulce-El Porvenir, Vehicle Operating Casts ...ooo........ 9 5. Danli-Santa Marta (24 km) - Section I, Economic Reevaluation 10 6. Danli-Santa Mari& (24 kn) - Section 1, Average Vehicle Operating Costs, Economic keevaluation *.oo....o..o..o.o... 11 - 7o Danli-Santa Maria - Section II (19.5 km), Economic Reevaluation 12 bo Danli-Santa Maria (24 km) - Section II, Average Vehicle Operating Costs, Economic Reevaluation .................... 13 * 9. Telica-San Francisco de la Paz - Economic Reevalustlon . 14 * 10. Telica-San Francisco de la Paz, Vehicle Operating Costs 15 11. Feeder Roads Program - Economic Reevaluatlon o............... 16 12. Feeder Roads Program - Economic Reevaluatlon ...............oo 17 13. Feeder Roads Program - Economic Reevaluation ................ ANNEXES 1. Borrower's comments 19COOgS ......... ; ..... .............. 19 2. Unofficial Translation of the Borrower*s comments.,,., .,. 20 MAP IBRD 20391 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.  - i - HONDURAS EIGHTH HIGHWAY PROJECT (LOAN 1901-HO) PROJECT COMPLETION REPORT PREFACE ; The following is a Project Completion Report (PCR) on Honduras Eighth Highway Project, for which s loan for US$28.0 million was approved by the Executive Directors on August 26, 1980. The loan was closed in June 1987 and an unused balance of US$4.6 million was cancelled. The PCR was prepared by the Bank's Latin America and Caribbean Regional Office and is based upon information obtained from the LAC Information Center, the Project Appraisal Rep_rt, staff supervision reports, consultant's reports and a PCR prepared by the Borrower. In accordance with the revised procedures for project performance audit reporting, this Project Completion Report was read by the Operations Evaluation Department (OED) but the project was not audited by OED staff. The draft report was sent to the Borrower for comments; their replies are shown as annexes to the report. e  - ii - HONDURAS ICGHTH IIGHWiLY PROJECT (LOAN 1901-HO) PROJECT COMPLETION REPORT NASIC DATA SHEET Key Project Data Appraisal Expectation Actual Total Project Cost (USS million) 40.84 33.51 Loan Amount (USS million) 28.00 23.40 Disbursed 28.00 23.40 Date Physical Component Co-pleted 12/84 11/86 Proportlon of time overrun (S) - 25 Economic Rate of Return (2) 1/ 16-18 12-16 Institutional Performance Good Other Project Data Original Plan Actual First Mentioned in Files - 01/03/79 Appraisal 11/79 12/79 Negotiations 06/80 6/23-27/80 Board Approval 8/26/80 08/26/80 Loan Agreement Date 09/29/80 Date of Effectiveness 12/30/80 03/25/81 Closing Date 06/30/85 06/30/86 Name of the Borrower Republic of Honduras Executing Agency Secretaria de Comunicaciones, Obras Publicas y Transportes (SECOPT) Fiscal Year of the Borrower January 1-December 31 Follow-on Project: None I/ Refers only to the improvement of secondary roads.  - iii - EXCHANGE RATE Appraisal 1.00 USS - 2.00 HOnd. $ COOPletion Year Average 1.00 USS - 2.00 Hand. $ CUMULATIVE ESTIMATED AND ACTUAL DISBURSEMENT FY88 FY82 FY83 FY84 FY83 FY86 FY87 Appraisal Estimate 2.0 14.9 22.6 26.0 28.0 - Actual 0.0 2.0 5.8 16.0 20.6 22.5 23.4 Actual or 2 of Estimate 0.0 13.4 25.7 61.5 73.6 80.4 83.6 MISSION DATA Date of Type of Mission Month/Year No. of Persons Man Weeks Report identification 1/79 3 2 n.a. Pre-appraisal 10/79 S 10 11/12/79 Appraisal 11/79 2 2 - Supervision 9/80 1 1 9124180 Supervision 2/81 1 1.5 3/6181 Supervision 5/81 3 4.5 6/8/81 Supervision 3/82 3 4.5 4/4/82 Limited Supervision 1 4/82 1 0.5 5/20/82 Limited SupervisionT/ 7/82 1 0.5 8/20/82 ar Limited Supervision1/ 10/82 1 0.5 10/29/82 Limited Supervisioni' 11/82 1 0.5 11/23/82 Limited SuperviSion3/ 11/82 1 0.5 1/3/83 Supervision 3/83 2 2 5/5/83 Supervision 7/83 1 2 6/19/83 Limited Supervisionl' 11/83 1 0.5 11/30/83 Supervision 12/83 1 0.5 1/11/84 Supervision 6/84 1 1 6/25/84 Supervision 10/84 1 1.S 10/19/84 Supervision 2/85 1 1.5 2/28/85 Supervision 2/86 2 2 2125/86 Supervision 6/86 1 1 6/19/86 _.~~N0MM1jM_ 1/ Refers to road maintenance related components only. 2/ To participate In annual inter-agency review of labor-intensive road works, 3/ Refers to training component only.  - iv - PROJECT COMPLETION U11OT? mmIDUUAS 31HTH M1CUWAY PILWECT IRWICT (LOAN 1901-MO) ,Introduction HIGHLIGHTS Tbe glghth lighvay Project had as Its maln objectives the improvemnt of access roads to and from rural areas and the continu&tion of the lnstitutional lprovenuts undertaken under previous projects to strengthen highway ed.dnistratlon and mintenoncs. To achieve Its objectives, the project Included: (1) constructlon of about 350 km of feeder roads in selected agricultural valleys; (11) improvement of about 115 km of secondary roads; (111) purchase of maintenance and vorkshop equipuent and spare parts; (lv) technical assistance for lmplementing a maintenance management system; and (v) technical assistande for training the personnel of the General Directorate of -aintenance (para 1.01). Objectives The project experlenced 0o1y moderate probletm durlng Its Implementation, except for the Lmprov&ment of the Tellc-San Francisco de la Paz road, which experienced delays due to the finsncial weakness of the contractor. Because of delays In this component, the loan closing date was extended from June 30, 1985 to June 30, 1986 (par& 1.03). SECOPT was always prompt to identify and endeavor to take remedial actions to ensure a tlmely execution of the project, especially in relation to the GovernMent's slow procurement procedures (par& 1.08). Implementation Experience The institution-building component of the project resulted in substantial progress In SECOPT's carabilities for scheduling and controlling maintenance activities. The technical assistance consultants, during the course of their assignment, refined and Implemented at the natlonal level the maintenance management system developed under the previous bank-financed project. However, gains under the project still need to be consolidated. The system developed by the consultants needs further adjustments to reflect changing conditions, a process that will require additlonal technical assistance in specific flelds. Notwithstanding SECOPT assurances that efforts in these areas will continue, there Is a risk that gains made under the project might be eroded because of staff changes and lack of funds for appropriate training of replacement personnel. The bank ls not financing a follow-on project (para 1.06). Results The Project Completlon Report offers the following conclusions: (a) The relative success of the ELghth Highway Project presents an opportunity for ldentifying the two main variables In the formula for positive results: tocal authoritles with a comitment toward project objectives and lnstitutlons like the Bank with the will to estabtlsh a long-term relationship with a borrower (para 3.UZ). The level of efficIency ln project loplementatlon, supervlslon, and financial control can be attributed, to some extent, to the 22 years of uninterrupted bank associatlon with the hlghway subsector of Honduras (para 3.03); and  v (b) The persistence and gradual ilprovement Inherent In the successful lntitution bullding process that took place In the highway subeector lo Hooduras, together with the risks attached to the sustainabillty of the g"ino under the project suggest the following lesson: Development l usually the *eoult of marginal changes that become evident only after cootla0ue efforta over relative.y long periods. While it Is true that sometlmes a substantlal leap forward might be feasible, the bank should not encourage this type of approach unless there is a reaonable certainty of the ability of the Borrower to absorb the Inputs, and of the Bank to continue its Involvemnt until those changes become fully e-bedded In the institution. If that Is not the cae, the Bank and the Borrower should refrain from considering substantial lnvestments in technical assis:ance designed in theory to produce a quantum leap, but unlikely to produce results in the framework of only one or two projocts. As an alternative, less grandiose but long-term, gradual, and continuous efforts for improving the existing system should be considered. I  PWOJECT COMPLETION REPORT MUNDURAS UIGNTH HIGHWAY PROJECT PRWOCT (LOAN 1901-HO) I. PROJECT OLJECTIVES, DESCRIPTION AND JJULEMENTATION A. ObJectives and Description of Project Components 1.01 The project, the couponents of which were Included in the Bank financed National Transport Plan, supported the followlng main objectives: (a) to facilitate the access to and from rural areas through better secondary and feeder roads; (b) to protect past Investments In the highway network through the improvement of maintenance operations; and (c) to continue ;he Institutional improvements undertaken under previous pi ects to strengthen highway administration and maintenance. To reach thosa objectives, the project, as described In the Appraisal Report, Included: (a) construction of about 350 km of feeder roads to be built within selected agricultural valleys; (b) Improvement of about 115 km of secondary roads; (c) purchase of maintenance and workshop equipment, including spare parts; (d) technical assistance for implementing a maintenancA management system for scheduling and controlling the maintenance activities; and (e) technical assistance for training DUN staff. ' B. Project Implementation (l) The Feeder Roads Program 1.U2 Construction of about 350 km of feeder roads In the Agricultural Valleys of Guoyape, Jamastran, La Masica, Yoro, Siria and Talanga was satisfactorily completed In late 1985. Works were carried out by local contractors ond SECOPT was responsible for the technlcal and financial management of the Program. Works were well organized and implemented at a total cost of US$7.39 millon, 23X below appraisal estimates. (11) Improvement of Secondary Roads 1.03 Of the three secondary roads included for improvements under the project, two (Rio Dulce-El Porvenir, 48 km; and Danli-Santa Maria, 43 km)  - 2 - were completod wittin schedule In 19i4. The thlrd (Telice-San Francisco de la Pa) experienced substantial delays almost from the start, due to the contractor's tiancial weakaes. finally, the contract was resc1nded in 1965, and the small amount of works renallnng were carrled out under the *se procodures used for the constructlon of feeder rods: smll contracts wlib leel cotractore and rented equipment. Works were finally completed in November 1MC4. The lelay experienced by this project component required the exteslon of the loan cloeing date from June 30, 1983 to June 30, 1986. (111) Maintenace Prosra (a) lro-srexent of eguiuent and spare marts 1.04 The project Included US$9.911/ milllon for the procurement nf mal2tenance equipment. However, the need for equlpment to support the road maintenance program was re-evaluated durlng project executlon and, as a result, only US$5.72 was spent under this project category. 1.05 The purchase of spare parts for equipment rehabilltation and workshops experienced conslderable delays, largely due to the Government's ltngthy and cumbersome procedures. Procurement of spare parts for a total of US$3.83 million was finally completed ln late 1985. (b) Technlcal Assistance 1.06 The project included technical assistance for the Implementation of a road malntenance management system for scheduling and controlling SECOPT's annual program of auintenance activities. The Government retained the same US consultant firm that assisted In developing the system under the Seventh HiShway Project. During the course of their assignment, which was completed in October 1984, the consultants refined and lmplemented the system In all the maintenance districts. However, gains under the project still need to be consolidated. The malntenance management system developed by the consultants needs further adjustments to reflect existing conditions. Additlonal technical assLstance in specific flelds such as plannlng of saintenance activities In light of budgetary constraints, field data collection to assess real productivity and costs of labor and equipment and equipment monagement will be necessary to this end. Notwithstanding SECUPT assurances that efforts in these flelds will continue, there is a considerable rlsk that the galns made under the project might be eroded because of staff changes and lack of funds for appropriate training. The bank Is not financing a follow-on project. 2/ 1.07 The same US consultant firm In charge of Implementing the malntenance management system provided technical assistance for training through both the Nechanical Training Production Unit (MPTU) and the Mobile Road Training Production Unit (RTPU). Accomplishments ln training were below original expectations. In the case of the MTPU, the main reason was the shortage of workshop space, hand and machine tools, and the delay in the supply of spare parts. These problems were largely overcome, however, when tbe technifal assistance was reaching its final stage. Therefore, the bank agreed to finance the extension of the services of the mechanical expert for about one year. The KtTPU, since Its Inception, encountered difficulties and delays because the equipment necessary for Its operation was not provided on 17The Borrover points out that the project Included US$10.01 million for equipment. 2/Please refer to the Borrower's coment on this point (Annex 2). The mention of a follow-on project In the report was Intended to stress the fact that a lack of a follow-on project increased the risks of loosing some of the gains made in Insti- tution building under the subject project.  -3 time and the RTPU had to depend upon the equipment borrowed from the mlatenance districts. While ia general the quallty of the training performd was good, Its Impact depended upon the willlngnoss or possibilities of the districts to land their equipmat. (iv) Geeral Rark 1.08 Although the project encountered moderate problms durlng ita ieplmntation, SECOPT wv In general prompt to Identify and endeavor to take remedlal actiona. tn particular, several measures vere taken to spced up the procurement protes. Thee measures, motly related to the relationship of SECOPT and the Natlonal ?rocuremnat Office, required decisions outside of SCOwT's control and were Implemented at a slover pace than necessary to avoid the delays In procuremunt. 1.09 Table 1 presents a comparison of appralial estlmted and actual project costs. As shown In the table, mot project components were lsplemnted at costs below appraltal estimates, largely because of on original overestimtion of costs. In the case of spare parts for equipment rehabilitation and workshop equipment, the higher-than-expected cost was due to purchaes In excess of those originally eavLsaged. 1:. ECONOMIC REEVALUATION A. Secondary Roads Improvement 2.01 The secondary roads improved under the project were justified at the time of the appraisal on the basls of vehicle operating costs savings as a result of upgrading their standards. The economic reevaluation was based upon the same methodology than that used at appraisal. Table 2 presents a summarized comparlson of the appralsal expected and actual traffic and costs used in the analysis and the resulting economic returns. Tables 3 through 10 show the cost and benefit streams of each subproject as well as the vehicle operating costs used In the economic reevaluation. 2.02 The ex-post evaluation confirms the economic mvrits of the subprojects, Ilthough with economic returns below those orlginally estlmated. The lower-than-expected returns can be mostly attrlbuted to a decrease in the economic activity In Honduras, which in turm resulted in a traffic growth below that estimated at appraisal. Traffic counts corried out In 19b6 show AITs ranging from 102 to 362 below the appraisal forecast for the same year. In the case of the tio. Dulce-E1 Porvenlr and the Danli-Santa Maria subprojects, the reduction la benefits due to the ower traffic was partially offset by a lower-than-appraisal estimatedjV ieal cost of the works. ./The Borrower In its comments points out that we are dealing with final costs and not estimated costs. However, the word "estimated" Iv this paragraph refers to those costs estimated at the time of project appraisal.  D. Fooder Roads ProEra. 2.03 At the tim of the appralsal, only a small part of the subprojects to be Included aoder the foeder road lmprovement program were subject to an economle evaluation. The romaining roads were to be defined In agreowent with the Dank, using the methodology for economic evaluation developed for the first group of roads. lach year, the Governmcnt presented to the Bank the list of foeder roads to be constructed In the following year, Including their final engieerlng and economic justification. 2.04 The ldentifleatlon of faedtr roads propoaed for Bank financing was based upon a screenlng and ranking system that took Into account field data for populatlon, road density and agricultural production and considers econouic, distributlve and socio-polltical factors. Those roads passing the screening test were subject to an economic *valuation In which the quantifled benefits were; (i) producer surplus from Increased agricultural production; (ll) cost savings to non-agricultural goods traffic; and (Iii) tle savings for passerger traffic. 2.05 The economlc reevaluation was carrled out for a representative road In each of the five agricultural valleys In which the feeder roads program vas actually lplemented. These roads were not part cf the group studied at appraisal. The ex-post economic analysis used basically the samq methocoltoy developed at appraisal. However, for the purpose of this report, only those benefits derived from an Increase In agricultural prod"tct1on were considered. Notwithstanding this conservative estimation of the benefits, the sample of roads studied confirmed the economic vlabillty of the feeder roads program with economic rates of return ranging from 192 to 752. Tables 11 through 13 give details of the economic analysis. III. CONCLUSIONS 3.01 The project was successful In reaching its objectives of Improving access to and from rural areas and of continulng the Institutional Improvements undertaken under previous projects to strengthen highway administration and maintenance. Most of the project components were loplemented within the orlginal schedule and at a cost below appraisal estimates. 3.02 The relative success of the Eighth Highway Project, especially when compared wlth slLlar projects in the region, offers an opportunity for Identifying the two main variables of the formula for positivQ results: local authorities with a com_itsent toward project objectives and institutlons lie the Bank with the willingness to establish a long-term continuous relationship with a borrower. 3.03 Throughout the Bank's 22 years of uninterrupted association with the Hlighway Sector of Honduras, a substantial amount of technical and professional know-how has been transferred. While this contrlbution towards the enhancement of human capital has not all reaianed In the public sector,  -5- it has helped to increase the degree of professiondlils in the country. me level of efficiency in project implementation, supervision and financial control to sow estent can be attributed to this telationship. 3.04 Regarding the technical assistance lnoluded under the project, in particular the implementation and operation of the road maintenance management systes, substantial progress was made in strengthening the planning and programing of maintenance activities. However, fiven the hith staff turnover rate. the sustainability of the gains under the project i- 11 require a continuous Government effort (which is being done) to train new staff at headquarters and to Improve the field data collection fed Into the system. After the departure of the consultants, however, these efforts seem to have wetkened. 3.05 The persistence and gradual improvement inherent in the successful institution building process discussed in para 3.03 above, together with the substantial risk attached to the sustainability of the gains under the road maintenance component of this project provide an important lesson: Development is usually the result of marginal changes that become evident only after continuous efforts over relatively long periods. While it is true that sometimes a substantial leap forward might be feasible, the Bank should not encourage this type of approach unless there Is a reasonable certainty of the ability of the Bank to continue its involvement until those changes become fully embedded in the Institution. If that ls not the case, the Bank and the Borrower should ruirain from considering substantial investments in technical assistances designed in theory to produce a quantum leap, but unlikely to produce results in the framework of only one or two projects. As an alternative, less grandiose but long-term, gradual, and continuous efforts for improving the existing system should be considered. 3.06 Another lesson to be learned from the project relates to the need to realistically address, during project preparation, the optimal timing of each of the components of the technical assistance. In the case of the Eighth Highway Project, the arrival In Honduras of the Mechanical Expert before the completion of the procurement of spare parts and tools necessary to carry out his job, introduced the need to extend his services. This additional expenditure could have been avoided through better timing of * project components.  1PROJECT COfLETION REPORT HONDURAS EIGHTH HIGHAY PROJECT (10AN 1901-HO) Comparjson Betwen Appralsl Estimated Wd Actual Costs CUSS mli on) Appraisal Estimto (including ContliMcles) Actual Cost Project Coemont local Foreign Total. Local Foreige Totel S DIlf #wrec A. Road Construction Nd Improavemnt 1. Construction of 350 la of leader roads 4.61 4.81 9.62 3.33 4.06 7.39 -23 2. improve"nt of Secondary Rods (Ca Rio ulce-EI Porvenlr (41.9 he) 0.89 1.36 2.27 0.99 1.21 2.20 -3 (b) Dall-Sante orla (42.6 hk) 3.16 4.61 7.97 3.32 4.0? ?.39 -? Ic) Telica-San Francisco de to Pat (20.0 km) 0.94 1.40 2.34 1,16 1.43 2.59 311 3. Supervlslon of Clvil Works (a) EngineorIng ServIces 1.11 1.10 2.21 O.6I 0.99 3.60 -19 lb) Vehicles 0.02 0.12 0.14 0.01 0.06 0.09 -36 Subtotal: 10.94 13.62 24.56 9.62 11.64 21.46 -13 ..ume -omama .*mass" m m i .... a... B. Mlantenance Program 1. Equipant and Sparo Parts (a) maintenance Equlpmnt 0.99 6.92 9.91 - 5.72 5,72 -42 (b) Training EquIpmnt 0.06 0.50 0.56 - - - - (c) Spare Parta - Preventive MaIntenanco 0.20 1.76 1.96 - 0.61 0.61 -9 (d) Spare Parts - EquIpment Rbhabltltatlon 0.11 3.05 1.16 - .73 1.73 *49 Col Workshop Equlpment 0.12 0.15 0.31 - 1.49 1.49 .176 Subtotal: 1.3e 12.36 13.76 - 9.55 9.55 -31 amam. ammuem season a sm. m 2. TechnIcal Assistance (a) For Road Mbintenance 0.33 1.19 1.52 0.46 1.65 2.31 *52 lb) For Tralning Program 0.19 0.61 1.00 0.03 0.14 0.31 -63 3. Training Abroad _ 0.02 0.02 - Subtotal: 0.52 2.00 2.52 0.49 2.01 2.50 0 I! seems mamo. nmnma mR Samos am... TOTAL: 12.84 ?A.flf An PA tn of-'~  - A J * PROJECT COIPLETION REPORT HONDURAS EIGHTH HIGHWAY PROJECT (LOAN 1901-HO) Secondary Road lmprove_ot - Suary ot Ecoomic Reevaluation 1966 ADT Economic Costs ( 1965 prices) Ecomilc lturn Appraisal Appraisal AWalsal Estimto Actual D 0if ference Estimat Actual D 0f frem Estlmte Actua (SL x 10 (ISL x 103) Rio Dulco-EI Porvenlr 390 246 36 5,544 4,216 -4 16 12 Dnail-Santa 9bris 181308 16,329 -11 16 Section I 1,213 971 20 13 SectIlon 11 396 357 10 16 Te lca-San Francisco de Is Paz 364 250 31 5,712 5,724 4 0.2 Is is I2  -8- TABLE 3 PROJECT COMPLETION REPORT HONDURAS EIGHTH HIGHWAY PROJECT (LOAN 1901-HO) Rlo Dulce-El Porvenir - Economic Reevaluation (Lempiras '000) Year ADT Costs Benefits 1981 57 1982 1,545 1983 2,614 1984 567 1985 237 83 568 1986 248 84 594 1987 261 84 626 1988 274 85 657 1989 288 86 691 1990 299 87 717 1991 310 88 743 1992 323 88 775 1993 336 89 806 1994 350 90 839 1995 362 91 868 1996 375 93 899 1997 387 93 928 1998 401 93 961 1999 415 94 995 2000 425 95 1,019 2001 436 96 1,046 2002 447 96 1,072 2003 458 97 1,098 2004 469 98 1,124 IRR - 12X Assumes the following traffic composition: Cars 352 Bus 25% Trucks 402  -9- TABLE 4 PROJECT COMPLETION URPORT OAS LIGUU HIGHWAYS PROJECT (LOAN 1901-0) Rlo Dule-U1 Porvenir - Vehicle Operating Costs (1985 Lespiras per 1,000 rel/Am) I. Good Fair Poor Car BuG Truck Car Bus Truck Car Bus Truck Paved 260.10 465.42 653.67 286.10 548.92 780.03 338.12 557.46 921.84 Gravel 368.65 624.94 877.70 405.51 737.04 1,047.36 4?9.24 82.46 1,237.78 EUrth 404.88 730.95 1,113.66 445.36 804.05 1,225.03 526.34 950.24 1,447.75 I .~~~~~ .  - 10 - TABLE 5 PROJECT COMPLETION REPORT HONDURAS EIGHTH HIGHWAY PROJECT (LOAN 1901-HO) Danli-Santa Maria (24 km) - Section I, Economic Evaluation (U$ 000) Year ADT Costs VOC Benefits Net Benefits 1982 2529 (2529) 1983 5100 (5100) 1984 5017 (5017) 1985 836 126 1445 1319 1986 971 124 1604 1480 1987 1028 (2) 1701 1703 1988 1090 113 1803 1690 1989 1156 110 1912 1802 1990 1213 11 2006 2017 1991 1274 110 2108 1998 1992 1337 233 2212 1979 1993 1405 43 2324 2281 1994 1475 68 2441 2373 1995 1534 61 2537 2476 1996 1596 67 2639 2706 1997 1659 45 2744 2699 1998 1726 37 2854 2817 1999 1795 91 2969 3060 2000 1849 142 3059 2917 2001 1904 15 3149 3134 2002 1962 112 3245 3357 2003 2020 1 3342 3341 2004 2081 6 3434 3428 IRR - 13S I/ Assumes gravel reposition every two years in the 'without project' case and a seal every eight years in the 'with project' case.  - 11 - TABLE 6 PROJECT COKPLETION REPORT SONDURAS EIGHTH HIGHWAY PROJECT (LOAN 1901-HO) Danll-Santa Kartl (24 km) - Section I, Average Vehicle 2terating Coate, Economic Reevaluation (L$ per 1,000 vehlkm) Average Operating Costs Vehle Type ADT Composition Without Proiect With Project Cars 100 Small 30 194.10 128.96 Medium 59 304.52 202.79 Large 11 418.62 280.24 Bus 100 Small 51 366.08 254.97 Large 49 1,000.97 622.05 Trucks 100 3.5 tons 20 585.04 333.37 9.0 tons 70 895.45 480.31 15.0 tons 5 1,250.77 640.47 18.0 tons 5 1,336.25 684.84 Pick-Ups, 100 393.74 393.74  - 12 - TABLE 7 PRWECT COKPLETION REPORT HONDURAS EIGHTH BIGHWAY PROJECT (LOAN 1901-HO) Danli-Santa ria - Section II (19.5 ki), geonomdi Reevaluation (Ls '000) Year ADT Costs Savings In VOC Benefits 1984 3,683 (3,683) 1985 339 49 747 698 1986 357 55 788 733 1987 374 56 826 770 1988 393 56 868 812 1989 413 56 910 854 1990 429 57 948 891 1991 446 57 985 928 1992 465 57 1,026 969 IRR - 162 I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~  - 13 - TABLE 8 PROJECT COVL2T'ON RPORT AONWOS IIC811 HIGHWAY PROJECT (LOAN 1901-HO) Denll-Santa Maria (24 EIn) - Section II. Averase Vehicle (7eratlu Costs, fCosomic levaluatlon *(L per 1,000 veh/ka) Average Operating Costs Vehicle Type ADT Composition Without Project With Project Cars 100 Smll - 9 265.91 158.39 Medium 64 401.35 246.52 Large 27 518.65 331.01 Bus 100 Small 67 504.85 303.88 Large 33 1,545.85 821.68 Trucks 100 3.5 tons 29 915.86 483.77 9.0 tons 67 1,457.48 746.39 15.0 tons 3 2,045.13 1,039.36 18.0 tons 1 2,293.00 1,110.27 Pick-Ups 100 . 494*43 327.91  - 14 - TABLE 9 PROJECT COMPLETION REPORT HONDURAS EIGHTH HIGHWAY PROJECT (LOAN 1901-HO) Telics-San Francisco de la Paz - Econonic Reevaluation ($L '000) Year ADT Costs Savings in VOC Benefits 1982 100 (100) 1983 1,741 (1,741) 1984 1,609 (1,609) 1985 240 172 (172) 1986 250 2,102 (2,102) 1987 260 32 876 844 1988 270 33 912 879 1989 281 33 946 913 1990 300 33 1,009 976 1991 321 36 1,079 1,043 1992 34 37 1,159 1,122 1993 368 38 1,238 1,200 1994 394 39 1,327 1,288 1995 413 40 1,391 1,351 1996 434 41 1,461 1,420 1997 456 42 1,533 1,491 1998 479 43 1,612 1,569 1999 502 53 1,690 1,637 2000 518 59 1,745 1,686 2001 533 65 1,795 1,730 2002 549 70 1,847 1,777 2003 566 76 1,903 1,827 2004 582 81 1,957 1,876 2005 199 87 2,017 1,930 2006 617 92 2,074 1,982 IRR - 152  - 15 - TABLE 10 PROJECT COMPLETION REPORT EONDURAS 'IC8TG 3ICUMAY PROJECT (LOAN 1901-3W) * ~~~~Telica-San lwaucisco de la Paz - vehicle operating Costs (L$ per 1,000 voh/I.) Average Operating Costs Vehicle Type ADT Composition Without Proiect With Project Cars 100 Small 8 259.86 158.59 Medium 84 389.70 246.63 Large 8 515.67 332.30 Bus 100 Small 91 487.32 304.41 Large 9 1511.49 823.88 Trucks 100 3.5 tons 45 889.97 484.91 9.0 tons 48 1408.23 747.51 12-15 tons 7 1973.33 1040.02 Pick-Ups 100 474.45 329.70 1/ Increased 15% due to road deterioration.  - 16 - TAILL I1 PROJECT COMPLETION REPORT HONDURAS EIGHTH HIGHWAY PROECT (LOAN 1901-HO) Feeder Roads Progrm - Economic Reevaluation (U '000) La Kasica Valley Yoro Valley Las Deliclas-Las Quebradas Road Dessonte-Victoria Road Year Costs Bensf its Not Benefit' Costs enefits met BeneBsfits 1984 525 (525) 602 (602) 1985 68 68 85 85 1986 21 145 143 5 185 180 1987 9 191 182 19 182 163 1988 9 238 229 19 178 159 1989 23 288 265 49 174 125 1990 9 340 331 19 169 150 1991 9 394 385 19 163 144 1992 9 450 441 99 156 137 1993 9 509 500 19 148 129 1994 9 570 561 19 140 121 IRRI - 35Z IRRZ -19% l~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~  - 17 - TABLE 12 PROJECT COIPLETION 3PORT .ONWU AS RIGKS KICOWAY PflOWCT (LOAN 1901-"0) feeder loads Frogm - *coIoodc Reevaluatlon (Ui 'WO~) Cu yape Valley Janastran Valley Gualigume-La Sosa Road Puente Lo Almeudros-Villa Santa Pd. Year Cot$ Benefits Net DBnefite Costs Benefi ts Not Benefits 1983 397 (397) 803 (803) 1984 12 64 52 26 289 263 1985 12 141 129 26 630 604 1986 12 235 223 26 1,028 1,002 1987 12 263 251 26 1,087 1,061 1988 30 293 263 67 1,150 1,083 1989 12 326 314 - 26 1,212 1,186 1990 12 361 349 26 1,285 1,259 1991 12 400 388 26 1,358 1,332 1992 12 441 329 26 1,434 1,408 1993 12 487 475 26 1,515 1,489 IRRI - 43X IRR - 75Z  - 16 - TABLE 13 PROJECT COKPLETION REPORT HONDURAS EIGHTH HIGHWAY PROJECT (LOAN 1901-HO) Feeder Roads Program - Econosic lsevaluatlon (L$ w000) Talanga Valley Siria Valley Hacienda Talanguila-El Suyatal El Porvenir-El Pedernal Year CMMts Benefits Net Benefits Costs Benefits Net Benefits 1983 1984 504 (504) 749 (749) 1985 6 27 21 6 116 110 1986 56 56 233 233 1987 11 93 82 17 393 376 1988 11 133 122 17 571 554 1989 29 175 146 44 768 724 1990 11 220 209 17 985 968 1991 11 268 257 17 1,224 1,207 1992 11 319 308 - 17 1,487 1,470 1993 11 373 362 17 1,776 1,759 IRRZ - 23% IRRZ - 52% I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ .,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~  -19- AnEX 1 ZCVI: DIST276SX8 .1111(a02 OEDDI M tI JD P 1 18, * J(Se(~', 71i'' IN 04/09V -/ 1IlIl- 04/10:02 7EW3:fl: IliAl.PAt )) .1:. 4-12-t47 S: 1CRAHAM )1014A It';lJN JEFt. 11E 11 )(VISTONlN A:iRXI::IL.TIIRA INF HAEF%WrRtIE:Tr1KA Y IF<C ttIRHtO'S HUMAMU:S PAN;(J MliN1:1XAL GU'VZ10';A1F N1i' ArnRHJWHil 1.0 .o;1IX.X CIIA)):' EN f;A CIARMIA ))FL 6, )l NO- VFl)MIRL: iu[::. PR121;t:NI(t.A O, RI.:L.A(;XON