Afghanistan - Third Highway Project

Document of The World Bank FOR OFICIAL USE ONLY Report No. 13282 PROJECT COMPLETION NOTE A"GHANISTAN THIRD HIGHWAY PROJECT (CREDIT 927-AF) JUNE 30, 1994 Infrastructure and Energy Operations Division This document has a restricted distribution and may be used bv recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.   FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Office of Director-General Operations Evaluation June 30, 1994 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Note on Afghanistan Third Highway Project (Credit 927-AF) Attached is the Project Completion Note (PCN) on "Afghanistan - Third Highway Project (Credit 927-AF)" prepared by the Energy and Infrastructure Operations Division, Country Department 3, of the South Asia Regional Office. The Credit was approved by the Board on June 7, 1979. It never became effective. The reason for the Bank's decision not to make the Credit effective was the prevailing situation in Afghanistan at the time, which made effective Association supervision impossible. The project was finally canceled as of January 1, 1982 in the expectation that conditions for effectiveness could not be fulfilled in the foreseeable future. As the project was not implemented under the circumstances, its outcome and impact are not rated. A Project Completion Report was not prepared as operations under the project never commenced. The PCN is satisfactory. Robert Picciotto by H. Eberhard K6pp Attachment This document has a restricted distribution and may be used by recipients onty in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.   PROJECT COMPLETION NOTE AFGHANISTAN THIRD HIGHWAYS PROJECT (CREDIT 927-AF) Project Identitv Project Name: Third Highways Project Credit No.: 927-AF RVP Unit: South Asia Region Country: Afghanistan Sector: Transport HI. Backeround 1. This is a Project Completion Note for the Third Highways Project for which a Credit of $17.6 million equivalent was approved by the Board on June 7, 1979. The Credit never became effective and it was terminated in its entirety by the Association as of January 1, 1982. No disbursements were made against this Credit. A Project Completion Report (PCR) is not being prepared because operations under this Project never commenced, and because this Project was identified by OEDDR as requiring only a Project Completion Note.' This Project Completion note was prepared by the Energy and Infrastructure Operations Division, Country Departrnent III, South Asia Region and was based on a review of the SAR, Development Credit Agreement, and correspondence and memorandums contained in the Association's correspondence files. III. Proiect Descrivtion 2. The objective the Third Highways Project was to strengthen the capacity of the Road Construction and Maintenance Department (RCMD) of the Ministry of Public Works to execute its responsibilities for maintaining and upgrading the highway network in Afghanistan, including primary, secondary and tertiary roads. The principal components of the project were to be: (i) a three-year time slice of a pavement strengthening program for about 450 kIms and surface dressing for about 160 kms; (ii) a three-year slice of a road maintenance (4,000 kms) and improvement (300 kms) program; and (iii) technical assistance for RCMD. RCMD was to be responsible for implementing the entire project. 3. The principal direct beneficiaries were to be road users but, due to the keen competition in the road transport industry, the savings in transport costs were expected to be quickly passed on to producers and consumers. The overall economic rate of return for the pavement strengthening and preservation component was estimated at 42 percent, and the benefit/cost ratio for the maintenance and improvement component was calculated to be 2.3. 1/ See Memorandum dated December 4, 1992 to Mr. Paul Isenman from H. Eberhard K6pp.  2 4. The total Project cost wu astimated at $33.2 million of which the Government of Afghanistan, IDA and the EEC Special Action Fund were to provide $11.2 million, $17.6 million, and S4.4 million, respectively. 5. The reason for the Bank's decision not to make the Credit effective was the prevailing situation in Afghanistan at the time, which made effective Association supervision impossible. All IDA disbursements to Afghanistan were suspended in April 1980, and have not resumed since this date. Credit 927-AF effectiveness was postponed twice from the original planned date of December 27, 1979 to December 31, 1981, and the Project was finally cancelled as of January 1, 1982 in the expectation that conditions for effectiveness could not be fulfilled in the foreseeable future. M:\AM\AFGHANIS\CR9Z7.PCI