Mexico - Second Highway Sector Project

Documnt of The World Bank FOR OMCAL USE ONLY RqwRt No. 12719 PROJECT COMPLETION REPORT MEXICO SECOND HIGHWAY SECTOR PRO JECT (LOAN 2428-HE) FEBRUARY 2, 1994 MICROGRAPHICS Psport No: 12719 Type: PCR Country Department II Infrastructure and Energy Operations Division La.:in 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.  CLRRENCY EQUIVALENTS Currency Unit - Peso (Mex$) US $1.00 (1984) = 173 US $1.00 (1985) = 257 US $1.00 (1986) - 612 US $1.00 (1987) = 1378 US $1.00 (1988) = 2273 US $1.00 (1989) = 2461 US $1.00 (1990) = 2813 US $1.00 (1991) = 3018 US $1.00 (1993) = 3104* * May 20, 1993 FISCAL YEAR January 1 to December 31 UNmr OF WEIGHTS AND MEASURES Metdc British/US Equivalent 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 mile (mi) 1 kilogram (kg) - 0.0022 pound (lb) 1 mezric ton (m ton) = 2.205 pound Ob) 1 liter (t) 0.26 gallons (gal) ABBREVIATIONS AADT Annual Average Daily Traffic BANOBRAS National Bank of Public Works and Services (Banco Nacional de Obras y Servicios Piblicos) CyPF Toll Road and Bridge Authority (Caminos y Puentes Federales) ERR Economic Rate of Return IDB Interamerican Development Bank (Banco Interamericano de Desarrollo) SCT Secretariat for Communications and Transport (Secretarfa de Comunicaciones y Transporte) SHCP Secretariat for Finance and Public Credit (Secretarta de Hacienda y Crddito Publico) SHSP Second Highway Sector Project VOC Vehicle Operating Costs  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Office of Director-General Operations Evaluation February 2, 1994 MENORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Mexico Second Hfihway Sector Project (Loan 2428-ME) Attached is a copy of the "Project Completion Report on Mexico - Second Highway Sector Project (Loan 2428-ME)", prepared by the Latin America and the Caribbean Regional Office. The report incorporates borrower findings on implementation and borrower comments (Part II). Project objectives were physical improvements to the highway network, institution building in the tranaport sector, and government-Bank dialogue on land transport issues, including freight regulation. The project was formulated as sector lending, and it comprised the full road sector programs of three consecutive years. Implementation suffered a delay of 100X due to institutional inertia, defective procurement procedures and lack of counterpart funds for civil works. Change in government and the 1987 Bank reorganization were contributing factors. The project was ultimately successful in achieving the intended physical improvements. However, the economics were disappointing: the re-estimated economic rate of return was below 10S for about half of the investment and negative for at least a third. Project impact on institution building was positive, though the PCR noted the difficulty of assessing a single project in isolation of other initiatives in the sector. Noteworthy, in particular, were advances in rural roads maintenance. The overall project outcome is rated as marginally unsatisfactory, institutional development as substantial - and sustainability as likely as the government is fully committed to pursue the objectives underlying the project. The PCR is a quality product. The project may be audited. Attachment 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 OmCIL USE ONLY MEXICO SECOND HIGHWAY SECrTOR PR1JECT t IAN 2428-hME PROJECT CO