Third Highway Project -Tanzania

Qr. FILE COPY RESTRICTED Report No. PTR-80a This report is for offiil use only by the Bank Group and upelilcly authrtized orpnIton or perons. It nay not be pubthed, quoted or cited without Bank Group authorution. The Dank Group does not accept rerponsbility for the accucy or completenes of the report. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION APPRAISAL OF THE THIRD HIGHWAY PROJECT TANZANIA July 12, 1971 Transportation Projects Department  Currency Equivalents Currency Unit = Tanzanian Shilling (T Sh) T Sh 1 = UJS$0.14 US$1.00 = T Sh 7.14286 T Sh 1 million = US$140,000 Fiscal Year July 1 - June 30 I.iieghts and Measures: Metric Metric: British/US equivalents 1 meter (m) = 3.28 feet (ft) I kilometer (km) = 0.62 miles (mi) 1 square kilometer (km2) - 0.386 square miles (sq mi) 1 hectare (ha) = .2.47 acres (ac) 1 liter (1) = 0.22 British gallons (imp gal) - 0.26 US gallons (gal) 1 metric ton (m ton) = 2,204 pounds (lbs) Abbreviations and Acronyms CIDA - Canadian International Development Agency COM-1ORXS - Ministry of Communications, Transport and Labour EARC - East African Railways Corporation GDP - Gross Domestic Product PMEA - Permanent Mission in Eastern Africa RAD - Roads and Aerodromes Division 3=0C0 - Swedish Consulting Group UNDP - United Nations Development Programme USAID - United States Agency for International Development vpd - vehicles per day  TANZANIA THIRD HIGHWAY PROJECT TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS .......... ............. ........ . . i- 1. INTRODUCTION .................... ...... * ...... 2. BACKGROUND.. 3 A. Economic Setting. 3 B. The Transport System. 3 C. Transport Policy and Coordination. . ...... 4 3. THE HIGHWAY SECTOR .......................... 5 A. The Highway Network. . . 5 B. Characteristics and Growth of Road Traffic . .. 6 C. Highway Administration. . . 6 D. Highway Expenditures and Planning . . 7 E. Engineering and Construction. . 7 F. Highway Maintenance... . ........... 8 4. THE PROJECT... ...... 8 A. Description.. .. 8 B. Improvement of the Mtwara-Masasi Road . . 9 C. Betterment of Agricultural Feeder Roads . 9 D. Preinvestment Studies by Consultants . .10 E. Construction Supervision and Training by Consultants 10 F. Staffing and Ting rainingProgram 10 G. Cost Estimates.... . . .... 11 H. Financing and Disbursements ..13 I. Execution .... ..................... 13 5. ECONaMIC EVALUATION. .... .... .. .... 14 A. Improvement of the Mtwara-Masasi Road .14 B. Betterment and Maintenance of the Geita Cotton Roads ..... 16 C. Betterment and Maintenance of the Mara Region Dairy Roads. 16 6. AGREEMENTS REACHED AND RECOMMENDATION........... 17 This report was prepared by Messrs. F. Soges and R.H. Snel (Engineers), H. Brandreth and D. Jovanovic (Economists), and Miss J. Murphy (Editor).  -2- .TABLES: 1 - Highway Network 2 - Vehicle Fleet 3 - Central Government Highway Expenditures 4 - Design Standards for Mtwara-Masasi Road 5 - Feeder Roads Included in Betterment Program 6 - Equipment for Betterment and Maintenance Units 7 - Estimated Schedule of Disbursements M4AP: Tanzania Highway System  TANZANIA THIRD HIGHWAY PROJECT SUMMARY AND CONCLUSIONS i. Internal transport in Tanzania is made difficult by the great distances which separate populated areas and economic centers. The pre- dominant mode of transport for many years was the railway which trausports mo6t exports and imports. Over the past decade, however, increasing em- phasis has been placed on regional development and the Government has em- barked on an ambitious program of road construction and improvement. Under the Bank Group's first and second highway projects, undertaken in 1964 and 1969, almost 1,400 km of primary and secondary roads have been or are being improved. ii. Start of the first highway project was quite slow, largely because of a shortage of staff in the Ministry of Communications, Transport and Labour (COMWORKS); later, execution proceeded satisfactorily and engineer- ing and construction are now complete. The staffing and training program, included in the project when it was revised in 1968, is underway. Construc- tion of the Tan-Zam highway under the second highway project is proceeding well, and works are about 75% complete. iii. While primary roads will continue to absorb the major portion of expenditures for highways, a growing portion of funds is being allocated to the development of agricultural roads in rural areas where the inadequacy of feeder roads is hindering development. Government plans call for the betterment of feeder roads wherever agricultural potential is identified. iv. The third highway project, partly prepared through studies fi- nanced under the first highway project, is designed to assist the Govern- ment in its ongoing program of primary road improvement, and to initiate the betterment of agricultural feeder roads. The project consists of the following: (a) bituminous paving of the existing gravel road between Mtwara and Masasi (200 km), (b) betterment of 475 km of agricultural feeder roads in the Geita district and in the Mara region, (c) preinvestment studies for road improvements, (d) construction supervision and training by consultants, and (e) continuation of the staffing and training program in COMWORKS. The total cost of the project is estimated at US$9.5 million equivalent. The proposed credit of US$6.5 million will cover the foreign exchange component, i.e. about 68% of total project costs. v. The Roads and Aerodromes Division (RAD) of COMWORKS will be responsible for execution of the project. It will be assisted by consul- tants employed on terms and conditions acceptable to the Association. Con- struction of the Mtwara-Masasi road will be by contract, awarded after international competitive bidding in accordance with Bank/IDA guidelines. Under the project, equipment will be purchased for two betterment and main- tenance units which will be established for the betterment of agricultural feeder roads. The betterment works will be carried out by RAD forces, trained and supervised by consultants.  - ii - Vi. The project is economically sound and of high priority. On the balsis of savings in vehicle operating costs and road maintenance costs, im- provement of the Mtwara-Masasi road is expected to yield an economic return of 14%. Economic justification of the agricultural feeder road betterment program is based on net benefits to be derived from induced agricultural pro- duction after allowance for the costs of both road betterment works and agri- cultural inputs are taken into account. The economic return expected on the Geita cotton development scheme is estimated at 21% and the economic return on the Mara dairy scheme is estimated at 28%. vii. The project provides a suitable basis for an IDA credit of US$6.5 million equivalent to the United Republic of Tanzania.  TANZANIA APPRAISAL OF THE THIRD HIGHWAY PROJECT 1. INTRODUCTION 1.01 The project has evolved from a number of preinvestment studies which were carried out in Tanzania over the past few years. A feasibility study, carried out in 1968 by the consultants, United Research Inc. (US) and financed by the United States Agency for International Development (USAID) recommended paving of the Mtwara-Masasi road (200 km). In September 1970, the Government commissioned the Swedish Consulting Group (SWECO) to carry out (a) detailed engineering for this paving work and (b) feasibility studies and preliminary engineering for improvement of the Masasi-Songea road (454 km). The study of the Masasi-Songea road is not sufficiently advanced to consider including these improvement works in the present project, but the engineering work on the Mtwara-Masasi road is substantially completed and paving of this section has been found to be justified. 1.02 Detailed engineering for the construction of secondary roads in the cotton growing area of the Geita district was undertaken by the British consultants, Sir William Halcrow and Partners, as part of the project fi- nanced by Credit 115-TA in 1968. Because the engineering revealed higher costs than had been estimated at the time the original feasibility study was carried out, the economic justification for this construction was re- viewed in the fall of 1970 by a research unit from the University of Dar es Salaam and by the Planning Division of the Ministry of Communications, Transport and Labour (COMWORKS). Their studies revealed that construction of these roads would be too costly for the traffic volumes carried, but that the existing roads could be upgraded to acceptable service levels through minor construction and betterment works and improved maintenance. 1.03 In 1969, United Research Inc. carried out feasibility studies, with financing from USAID, for the betterment of feeder roads in six agricultural areas. The Government, in consultation with the Association, selected from these, two areas of high agricultural potential - the Mara and Mbulu regions - and, in October 1970, asked the consultants, Sir Alexander Gibb and Partners (UK), to carry out the preliminary engineering for better- ment of about 300 km of feeder roads in these regions. The Mara roads were found to be suitable for a pilot betterment operation, but betterment of the few and scattered roads in the Mbulu region could more appropriately be undertaken as part of an overall maintenance program. 1.04 Based on the results of the various studies, a project suitable for IDA financing has been identified. The total cost of the project is estimated at US$9.5 million equivalent with a foreign exchange component of US$6.5 million or 68%. 1.05 Two other road projects are presently under consideration by the Government. The Canadian International Development Agency (CIDA) has agreed to finance a study of the link from Arusha to Mwanza (about 500 km)  - 2 - and has invited proposals from consultants; the study is expected to be completed before the end of 1972. Japan is financing a feasibility study, which is expected to be completed later this year, of a coastal link between Dar es Salaam and Mtwara (about 400 km). 1.06 This will be the third highway project financed by the Bank Group in Tanzania. The first highway project was financed by a US$14.0 million credit (48-TA) in 1964 supplemented by a US$3.0 million credit (115-TA) in 1968. The project, as revised in 1968, consisted of the construction of six road sections totalling 880 km; the detailed engineering of a 234 km section of the Tan-Zam highway (now being constructed under the second highway project) and of 335 km of aecondary roads in the Geita district; and initiation of a staffing and training program for COMWORKS. After a very slow start, engineering and construction under this first highway project have been satisfactorily completed; the staffing and train- ing program is underway and will be continued under the present project. The second highway project is being financed by an IDA credit (142-TA) of US$15.5 million, a Bank loan (586-TA) of US$7.0 million, and a Swedish credit of US$7.5 million equivalent, all made in 1969. This second project, which consists of the reconstruction of a 510 km section of the Tan-Zam highway, is about 75% complete and is being carried out efficiently. The reconstruction of other portions of this link between the copper belt in Zambia and Dar es Salaam is being financed by USAID in Tanzania, and by a UK grant and Bank loans (469-ZA and 563-ZA) in Zambia. The works in Zambia were completed in 1969. The Bank Group financed section in Tanzania is ex- pected to be completed by the end of 1971. 1.07 Other loans for transportation include two (110-EA of US$24.0 million in 1955 and 428-EA of US$38.0 million in 1965) to the former East African Common Services Authority for the improvement of equipment and facilities operated by the former East African Railways and Harbours Administration. In 1969, a Bank loan of US$35.0 million (638-EA) was made to the newly created East African Harbours Corporation, and in 1970, a loan of US$42.4 million (674-EA) was made to the new East African Railways Corporation (EARC). Execution of these projects, although somewhat slow in starting, is proceeding satisfactorily. 1.08 This report is based on the studies mentioned above, the work of the Permanent Mission in Eastern Africa (PMEA) which assisted the Government in preparing the project, and the findings of a mission consisting of Messrs. F. Soges, R. H. Snel (engineers), H. Brandreth and D. Jovanovic (economists) which visited Tanzania in December 1970. The report was edited by Miss J. Murphy.  -3- 2. BACKGROUND A. Economic Setting 2.01 Tanzania is situated in East Africa a few degrees south of the equator. It has a land area of about 940,000 km2, a large part of which is a high, arid plateau. The population of about 12.9 million is heavily concentrated near the three main Indian Ocean ports of Dar es Salaam, Tanga and Mtwara and in a few agricultural areas which, for the most part, are located on the periphery of the country; i.e. the Lake Victoria region, the highlands around Kilimanjaro, and the southern highlands. While the popula- tion is growing at a high rate of 2.7% annually, the central region remains largely unsettled. The great distances between populated areas make the provision of adequate transport facilities difficult. 2.02 Over the period 1966-1969, the Gross Domestic Product (GDP) grew at an average rate of about 4.5% annually to reach a per capita level of about US$75 equivalent; real per capita income has been growing at only about 2.2% per annum. Agriculture is the principal economic activity, accounting for over 40% of GDP in 1969. About half of total production is consumed for subsistence; the main cash crops are cotton, coffee and sisal which together account for most export trade. Diamonds and gold are also sold abroad but exploitation of other known minerals is limited, partly because of the great distance to markets. A small but rapidly growing industrial sector accounts for about 7.5% of GDP. 2.03 The Government's second Five-Year Development Plan (1969/70-1973/74) stresses agricultural development, allocating nearly one-fourth of total expenditure directly to this sector. In addition, a small but increasing portion of expenditures In the highway sector is intended to stimulate agri- cultural production. The Plan puts high priority on crop diversification, particularly import substitution crops such as sugar, wheat and rice. One of the most promising examples of crop diversification to date has been the steady increase in cashew nut production in the south. B. The Transport System 2.04 The transport system consists of about 33,900 km of roads, 2,500 km of the East Africa Railway system, three ocean ports, coastal shipping and regularly scheduled air services. The transport system must fulfill three basic needs: (a) connect the widely-scattered population centers; (b) facilitate the movement of exports and imports to and from the ports; and (c) provide access to the sea for neighboring, landlocked countries.  2.05 The highway network consists of about 16,900 km of primary and secondary roads, of which only about 20% are all-weather paved or gravel roads, and about 17,000 km of roads of lower standards. Road connections between populated areas are being improved but the system still requires development, particularly of the low standard earth and gravel roads which are presently suitable only for dry-weather movements. 2.06 The railway network is concentrated in the central and northern part of the country. There are two main lines: one from Kigoma on Lake Ta.nganyika to Dar es Salaam (1,256 km) with an important branch to Mwanza on Lake Victoria (380 km); and the second from Arusha to Tanga (440 km), which also connects with the Kenyan port of Mombasa. A 188 km rail link along the coast connects these two lines. Burundi, and to a small extent Rwanda, rely on the rail line from Kigoma. The lack of adequate transport facilities in the southern half of the country, which is not presently served by the railway, has retarded development of this potentially pro- ductive area, but construction of the Tan-Zam highway and of the Tan-Zam railway, though basically designed to serve Zambian transit traffic, should help to stimulate the growth and development of this area. 2.07 Three Tanzanian ports - Dar es Salaam, Tanga and Mtwara - as well as Mombasa in Kenya serve Tanzania's and its land-locked neighbors' export/import traffic. The tonnage of the three Tanzanian ports in 1969 was about 2.8 million tons, with Dar es Salaam handling about 86% of the total and Tanga about 12%. Although coastal shipping is playing a declining role generally, it remains important in the region between Dar es Salaam and Mtwara because of the lack of an all-weather land connection. Shipping on Lakes Victoria and Tanganyika also plays a valuable role in maintaining communications. 2.08 Passenger transport by air is important, especially to remote areas, because of Tanzania's overall size, but air freight has not yet developed to a significant degree. Some 20 airports are utilized for scheduled flights, and services are maintained by the East African Airways Corporation, owned and operated by the East African Community. One inter- national airport exists at Dar es Salaam and another is being constructed at Arusha. C. Transport Policy and Coordination 2.D9 For many years, transport policy was directed almost exclusively toward the requirements of external trade, and emphasis has therefore been on railway development, with roads seen primarily as a complement and feeder to the rail system. While the movement of export/import traffic remains an important need, transport policy in recent years is giving increasing emphasis to regional development. The Government has therefore embarked on an ambitious program to improve primary roads and, more recently, is stressing the development of roads serving rural areas. The growing interest, as well, in improved connections with neighboring countries is reElected in the ongoing construction of the Tan-Zam highway and railway.  2.10 In the past, as part of the policy of railway development, the railways enjoyed protection from road competition through restrictive licensing of road transport on routes parallel with the railway. The East Africa Transport Survey (1969), which was financed by the United Nations De- velopment Programme (UNDP) with the Bank as executing agency, concluded that competition between road and rail, rather than protection of the railway, offered the more economic solution to coordination between modes, and recom- mended that the restrictive road licensing practices and differential railway tariffs be abolished. Under the terms of the 1970 Bank loan (674-EA) to the EARC, the Governments of Tanzania, Kenya and Uganda have agreed to reduce restrictive road licensing practices with respect to goods and to permit the EARC greater freedom in establishing rates in order to meet the growing road transport competition resulting from the more liberal road transport policy. The railway management's performance with respect to this undertaking has been satisfactory. 2.11 In Tanzania, the question of permitting unlimited scope for road transport services has been approached cautiously by the Government, since such a policy rests on free market competition between rail and road and among road operators which the Government believes may conflict with its policy of socialism and government ownership. A Government-owned National Transport Company has been created to control the Zambia-Tanzania Road Ser- vices Ltd., which provides the bulk of road transport services for Zambian exports and imports via Dar es Salaam, and the Dar es Salaam Motor Transport Company (an urban bus service) as well as a number of shipping lines and an air charter firm. The nationalization of other important road transport ele- ments is also being considered. The Government has tentatively proposed to expand the activities of this organization into the field of inter-regional road transport by taking over existing long-distance operations now largely owned and operated by foreign interests or agents, but no firm policy has yet evolved. It has requested financing from the UNDP for a study of the implications of the proposed nationalization policy and the most suitable course of action with respect to the development of the National Transport Company. 3. THE HIGHWAY SECTOR A. The Highway Network 3.01 Of the nearly 33,900 km of primary, secondary and agricultural feeder roads (see Table 1), only approximately 2,200 km are bituminous paved (an additional 800 km are under construction on the Tan-Zam highway) and another 1,100 km have been built to engineered gravel standard. The remainder are low standard gravel and earth roads. Except for the Tan- Zam highway, most of the engineered roads are located in the coastal region near Dar es Salaam and Tanga and in the Arusha and Lake Victoria areas. The density of the network is 36 km per 1,000 km2 and 2.8 km per 1,000 inhabitants.  - 6 - 3.02 The large proportion of low-standard roads is a result of the emphasis which was put on maximum mileage rather than quality when the system was being developed. More recently, some of the main roads connect- ing the principal centers of population have been improved, but, with the continuing growth of road transport, further development of the network is necessary. Primary roads must be improved or reconstructed if traffic growth is not to be inhibited, and agricultural feeder roads must be extended and upgraded in order to assure reliable and efficient access to market. The Bank Group's assistance in the highway sector has emphasized primary and secondary road development to date. While continuing to assist the Government in this aspect of its highway program, the proposed project will start the development of an adequate feeder road network. B. Characteristics and Growth of Road Traffic 3.03 The vehicle fleet (Table 2) grew at about 11% annually from 1962 to 1969, at which time there were about 75,300 vehicles in circulation, or about one motor vehicle per 171 inhabitants. In 1969, passenger cars were about 40% of the fleet; heavy vehicles such as trucks, truck/trailers and buses, about 27%; and light commercial vehicles, about 16%. There has been a marked trend to larger trucks and buses over the years; between 1961 and 1966, for example, the carrying capacity of the average truck increased over 11%. 3.04 The licensing pattern for truck transport distinguishes between public carriers providing for-hire transport, and private carriers limited to the haulage of the carrier's own goods. Private carriers receive licenses freely and outnumber public carriers by more than 3:1. In public haulage, the vast majority (92%) of license holders operate only one vehicle, while 17 large operators (about 1%) average over 30 vehicles apiece and account for 20% of the entire public carrier fleet and 25% of its capacity (these figures are exclusive of the carriers involved in Tanzania-Zambia transit traffic). A similar pattern is applicable to bus operations. About 96% of the carriers operate only two-thirds of the vehicles, with an average of less than two buses per licensee. Five large carriers operate 20% of all buses. 3.05 Little specific information is available on road transport traffic patterns in Tanzania other than the well-publicized Zambia transit movements. Traffic counts have been taken by COMWORKS for a number of years but the reliability of the figures produced is questionable. A newly organized traffic counting team is currently making reliable traffic counts, but these are not sufficiently advanced in coverage at this point to indicate national patterns for planning purposes. C. Highway Administration 3.06 The Roads and Aerodromes Division (RAD) of COMWORKS has overall responsibility for construction and maintenance of primary and secondary roads, and has recently begun to take over responsibility for feeder roads from the District Councils. The RAD works closely with other divisions of  -7- COMWORKS in carrying out its activities: it rents its equipment from the Electrical and Mechanical Division; relies on the Materials and Research Division for soils and materials testing; and cooperates with the Planning Division in assessing investment priorities. The RAD field activities, which are carried out by the 17 regional offices of COMWORKS, are sometimes hampered by difficulties experienced by the Electrical and Mechanical Divi- sion in obtaining spare parts. 3.07 Lack of competent and experienced engineers has adversely affected COMWORKS' performance, especially in road maintenance. The Government is continually trying to engage new personnel, either locally or abroad. Qual- ified engineers were recruited recently under the Government's staffing pro- gram, supported in part by Credit 115-TA, and bilateral technical assistance from Canada has further eased the staffing situation. While COMWORKS' staff- ing has improved significantly, it will have to continue to rely on external technical assistance since the number of qualified Tanzanian nationals will remain inadequate for many years. D. Nighway Expenditures and Planning 3.08 Total expenditures for highways rose from T Sh 66 million (US$9.2 million equivalent) in 1965/66 to T Sh 210 million (US$29.4 million equiva- lent) in 1969/70 (Table 3). This substantial increase reflects both the ambitious highway construction program undertaken by the Government, partic- ularly the first and second Bank Group highway projects, and the considerable increase in maintenance expenditures, largely necessitated by the increased Zambian transit traffic since 1966. 3.09 The second Five-Year Development Plan (1969/70-1973/74) allocates a total of about US$125 million equivalent to the highway sector. Of this amount, about US$70 million is committed for construction of the Tan-Zam highway. While the construction of primary and secondary roads will absorb the bulk of remaining funds, increased emphasis is being given to the development of feeder roads. The adequacy of this program and of the funds allocated to it, not only in terms of construction needs but also in relation to the road maintenance implications, cannot be properly assessed until fur- ther review of road priorities has been undertaken (para. 3.10) and until a full-scale study of maintenance requirements has been completed (para. 3.13). 3.10 Highway planning is carried out by the Planning Division of COMWORKS, working closely with the RAD. The Government has asked this division, which is staffed largely by personnel provided by CIDA, to review road investment proposals in order to assure that those with the highest priority are selected for study under the project (para. 4.07). E. Engineering and Construction 3.11t The RAD is responsible for the design and construction of road projects. The Division relies on consultants for the engineering and supervision of major works. COMWORKS' Materials and Research Division gives valuable support to the RAD and to consultants. Only a few small  - 8 - local construction firms are active in Tanzania. COMWORKS uses its own forces for all minor construction works, while major construction works are let to foreign contractors, including those regionally-based, after competitive bidding. F. Highway Maintenance 3.12 Maintenance of the highway network is carried out by COMWORKS' regional offices under the responsibility of the RAD. Until recently, maintenance of the 17,000 km of feeder roads was the responsibility of the District Councils, but the local authorities were unable to keep them adequately maintained and the roads are being added gradually to the RAD workload. 3.13 The Government recognizes that maintenance of the feeder road network represents a considerable increase in the responsibilities of the RAD, and an overall study of the maintenance needs is currently underway with USAID financing. The study, being carried out by Lyon Associates Inc. (US), is expected to be completed early in 1972. The terms of reference for the study, on which the Association was consulted, call for recommend- atio)ns on maintenance organization, operations, financing and equipment, and on a program of road rehabilitation. The Government plans to discuss the conclusions and recommendations of the study with the Association with a view to agreeing upon a maintenance program which would be undertaken, if possible, with financial assistance from the Bank Group. The feeder roacl betterment program to be carried out under the project is expected to provide valuable experience which can be incorporated into this main- tenance program. 4. THE PROJECT A. Description 4.01 The project consists of the following: (a) improvement to bituminous paved standard of the existing two-lane road between Mtwar4 and Masasi (200 km); (b) betterment of 475 km of agricultural feeder roads in the Geita district and in the Mara region; (c) preinvestment studies for (i) preparation of the present project, and (ii) improvement of 250 km of high priority roads;  (d) supervision by consultants of works under (a) and (b) above, including technical assistance for training under (b); and (e) continuation of the staffing and training program. B. Improvement of the Mtwara-Masasi Road (200 km) 4.02 The Mtwara-Mingoyo-Nanganga road, which links an important agricul- tural area with the port of Mtwara, is the most heavily-travelled section of the main primary road serving the southern part of the country. Between 1959 and 1962, the section from Mtwara to Mingoyo (82 km) was improved to engi- neered gravel standard, and the first 14 km from Mtwara were given a bitumi- nous surface dressing. The Mingoyo-Masasi section (118 km) was improved to engineered gravel standard between 1964 and 1968 under the Bank Group's first highway project. 4.03 Paving the Mtwara-Masasi road at this time is the next logical stage in the progressive development of the road to meet growing traffic requirements. Under the project, the unpaved portion of the road will be given a cement stabilized base, with a double bituminous surface course. The geometric standards of the existing road are generally adequate and, for the most part, will be retained. Some minor improvement will be made to the alignment of the Mtwara-Mingoyo section and one temporary structure will be replaced by a permanent bridge. The design standards (Table 4) are adequate for this type of road and traffic. A weigh bridge will be installed at a suitable location to prevent overloading of vehicles. C. Betterment of Agricultural Feeder Roads (475 km) 4.04 Success of the Government's agricultural development program is dependent on the good condition of feeder roads. In many important agricul- tural areas throughout the country, however, the condition of the roads is woefully inadequate, generally because they have not been properly maintained. Movement of crops and perishable goods is often hindered because of the lack of adequate roads between points of production, processing and market. 4.05 As a first step to enable the Government to bring these roads to adequate standard and to maintain them properly, the project includes a pilot program for feeder road betterment. Under the program, units for bet- terment and maintenance will be established in two important agricultural areas, the Geita cotton district and the Mara dairy region, where the success of specific agricultural development programs being undertaken by the Govern- ment is dependent on the adequacy of selected feeder roads (Table 5). The two betterment units will be equipped under the project (Table 6) and will be operated by RAD forces trained and supervised by experts to be provided (see para. 4.20). The minor works to be carried out - i.e., construction of culverts, digging of drainage ditches, and regravelling - will assure the efficient evacuation of cotton production in Geita and will provide all- weather connections between dairy farms and milk processing plants in Mara. Once the condition of the selected roads has been improved, the equipment will be utilized for betterment works elsewhere and general road maintenance.  - 10 - D. Preinvestment Studies by Consultants 4.06 The Government has requested IDA financing for the studies which were carried out by consultants, with the concurrence of the Association, to complete project preparation (see paras. 1.01 and 1.03). Specifically, they are: detailed engineering of the Mtwara-Masasi road, feasibility study of possible improvements to the Masasi-Songea road, and preliminary engineering for feeder roads in the Mara and Mbulu regions. These studies will be financed retroactively under the project (para. 4.13). 4.07 Improvement of the country's primary and secondary road network is being given considerable support by the Bank Group. In order to prepare the next group of roads for future lending operations, consultant services for the feasibility study and detailed engineering of about 250 km of the highest priority roads is included in the project. The roads will be selected on the basis of pre-feasibility studies presently being carried out by COMWORKS' Planning Division. Durlng negotiations, the Government agreed to furnish to the Association, not later than October 31, 1971, the results of this comprehensive review of road investment priorities and to select, in agreement with the Association, the specific roads to be studied and engi- neered under the project. E. Construction Supervision and Training by Consultants 4.03 Consultants will be provided under the project to supervise construction of the Mtwara-Masasi road. Consultants will also direct and supervise the activities of the two betterment and maintenance units to be established, training Tanzanian personnel in the planning of better- ment; and maintenance works, and in equipment operation and proper mainte- nance techniques (para. 4.20). F. Staffing and Training Program 4.09 The staffing and training program included in the first highway project was designed to assure the efficient operation of the road organi- zation while helping to train Tanzanian nationals to take over management responsibilities. An amount of US$250,000 was provided under Credit 115- TA t.o finance that portion of salaries which exceeded the Tanzanian salary scale for as many as eight foreign experts. In fact, the salaries of only two experts had to be supplemented by credit funds because the Government was able to recruit experts for some of the positions at Tanzanian rates and to fill the other positions through bilateral assistance. Credit 115- TA terminates (December 31, 1971) before the contracts of these two experts expire; the present project provides US$50,000 equivalent to assure con- tinuation, throughout project execution, of the services of these or other experts selected in agreement with the Association.  - 11 - G. Cost Estimates 4.10 The total estimated cost of the project is as follows: ------T Sh ?000- - -US$'000 equivalent- Foreign Local Foreign Total Local Foreign Total Gomponent a) Improvement of Mtwara- Masasi Road (200 km) 11,040 23,460 34,500 1,546 3,284 4,830 68% b) Betterment of Agricul- tural Feeder Roads % i) equipment and spares - 5,133 5,133 - 719 719 100% ii) culvert pipes and fuel 514 2,043 2,557 72 286 358 80% iii) labor 2,857 - 2,857 400 - 4