RESTRICTED Report No. PS- lOa This report is for offii use only by the Bank Group and specificaly authorized orpnizations or persons. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION APPRAISAL OF THE KUALA LUMPUR URBAN TRANSPORT PROJECT MALAYSIA May 31, 1972 Special Projects Department CUrrency Bcuivalent% Currecy Unit - Malaysian Dollar (X$) 1*.00 - U*S$.357 *J,0003,000 - US$357,143 US$1.00 - M$2.80 US$1JOOOOOO - 12,9800,000 Units of ktights and Measures British Standard British Standard: Metric/US Bquivalent 1 Mile (mi) - 1.6093 kilometers (kmu) 1 foot (ft) - 0.3048 meters (ma) 1 squar mile (Ni2) - 2.5898 square kiloeters (ko2) 1 cubic Yard (cu yd) - 0.764s6 cubic meters (m3) 1 acre (ac) - 0.4047 hectares (ha) 1 long ton (lg ton) - 1.0160 metric tons (a ton) 1 long ton (lg ton) - 1.1200 short tons (sh ton) Fiscal Year January 1 - December 31 c.i.f. - Cost, insurance and freight EPU - Economic Planning Unit G-DP - Gross Domestic Product aNP - Gross National Product IhR - Internal Economic Return m.p.h. - Miles per hour MOC - Ministry of Comnunications mOW - Ministry of Works, Power and Telecommunications p.c.u. - Passenger car unit p.p.a. - Persons per acre PWD - Public Works Department RTLB - Road Transport Licensing Board UNDP - United Nations Development Programme MALAYSIA APPRAISAL OF THE KUALA LUMPUR URBAN TRANSPORT PROJECT TABLE OP CONTENTS Page No. SUMMARY AND CONCLUSIONS ************--.-************-- i-ii I. INTRODUCTION ............. *........ *.**..*...*....* .... 1 II. BACKGROUND ............. * 1 LII. TRANSPORT NEEDS IN THE KUALA LUMPUR - PETALING JAYA URBAN CORRIDOR . .... .... S9 ........... ........ 3 A. Access Requirements in the Corridor ....... 3 B. Improvement of Road Based Public Transport ................ 5 C. Private Vehicle Use Policies .................. ............ 6 D. Alternative Transport Capacity Improvements ............... 6 E. Improvement of the Federal Highway ....... 8 IV. THE PROJECT ..... 10 A. General Description ................ ... .10 B. Improvement of the Federal Highway ........................ 10 C. Urban Transport Policy and Planning Studies ............... 11 D. Road Maintenance Study and Route 1 Engineering ............ 12 E. Design and Consulting Services .... .. .. .. .4 ........... ... . . 12 F. Cost Estimates ..13........................................ 13 C. Financling ............................... 15 H. Execution .......... ............ 15 I. Project Management ...................... - 16 J. Disbursements .................................. 17 V. ECONOMIC EVALUATION *........... 18 A. Quantified Returns ........................... t8 B. Unquantified Benefits and Costs .........20................. 20 VI. AGREEMENTS REACHED AND RECOMMENDATION .......................... 21 This report was prepared by Messrs. S. Hara, R. Woodford, and N. Noon (Economists), A. Bergan (Engineer Consultant) and W. P. McCulloch (Urban Affairs Officer) on the basis of appraisal missions in November/December 1971 and January 1972. Mr. R. Mulligan of the Transportation Projects Department assisted the mission during the final week of appraisal. ANNEES 1. Urban Development Administration in the Klang Valley 2. Urban Development and Transport in the Klang Valley Table 1 Major Components of Klang Valley Transport Pattern, 1971 Table 2 Road Traffic in Major Corridors into Kuala Lumpur Table 3 Motor Vehicle Registrations - West Malaysia Table 4 Hotor Vehicle Registrations - Selangor State Table 5 Revenues from Motor Vehicle Taxation Table 6 Klang Valley Road Mileages, 1971 Table 7 Klang Valley Road Expenditures, 1966-1970, 1971-1975 Table 8 Major Rail Trackage Investments in the Klang Valley, 1966-1970 3. Transport Characteristics in the Corridor Table 1 Number of Vehicles per 1,000 Persons in Selected Cities Table 2 Present Modal Split in Selected Cities Table 3 Projected Modal Split in Selected Cities 4. Alternative Improvement Schemes for the Federal Highway 5. Maintenance Study and Route 1 Engineering 6. The Highway Sector Table 1- Malaysian Road System, 1970 Table 2 Road Construction and Improvement in West Malaysia, 1966-75 7. Economic Analyses Table 1 Vehicle Running Costs, Net of Tax Table 2 Vehicle Depreciation and Interest Costs, Net of Tax Table 3 Vehicle Labor Costs Table 4 Personal Travel Time Costs TABLES 1. Population Distribution in the Klang Valley, 1957, 1970, 1980, 1985 2. Road Traffic Growth on Major Approaches to Kuala Lumpur 3. Estimates of Travel on the Federal Highway 4. Detail of Construction Cost Estimates 5. Estimated Schedule of Disbursements CHARTS 1. Public Works Department 2. Project Implementation Schedule MAPS 1. West Malaysia Transport Network 2. Klang Valley Region 3. Kuala Lumpur Urban Transport Project 4. Sections of Route 1 for Detailed Engineering MALAYSIA APPRAISAL OF THE KUALA LUMPUR URBAN TRANSPORT PROJECT SUMMARY AND CONCLUSIONS i. Growth in the modern sectors of the Malaysian economy has been concentrated mainly in Kuala Lumpur and the surrounding Klang Valley region with an accompanying population growth rate of 5.5% per annum. The corridor between Kuala Lumpur and Port Klang, served by a single through road, the Federal Highway, has been the dominant axis of growth involving the new towns of Petaling Jaya and Shah Alam, the expanded port, the new international air- port, and a substantial proportion of the new industrial plants. Although individual development schemes have been highly successful, the aggregate effect has been a severe strain on several related urban services and fa- cilities, particularly transport, for which corresponding improvements have not been made. ii. The lack of improvement to the urban section of the Federal High- way from the center of Kuala Lumpur through the adjacent new town of Petal- ing Jaya now threatens the successful completion of committed and planned development schemes as well as the maintenance of internal accessibility essential to the efficient functioning of the growing metropolitan area. Present and expected urban development problems arise from a lack of con- sistent, complementary planning and timely execution of related urban fa- cilities. To improve this situation a UNDP funded and Bank administered Klang Valley Regional Planning and Development Study (Klang Valley Study) is currently underway. However, additional transport capacity on the urban section of the highway will be required even with substantially improved policies and planning. iii. The project is designed as a phased response to the need for improving access within the rapidly developing metropolitan corridor, which extends more than six miles from the center of the capital city of Kuala Lumpur through Petaling Jaya, and the need to integrate the two halves of Petaling Jaya on either side of the present road. It would also facilitate access between the metropolitan area and major development areas along the 25 mile section of the Federal Highway between Kuala Lumpur and Port Klang. The project includes the construction of increased road capacity, along with provisions for a more efficient use of that capacity. It gives special at- tention to the needs of pedestrians, cyclists and bus passengers in the de- sign of the facility and places emphasis on the improvement and further de- velopment of public transport in the accompanying studies. iv. The Urban Transport Policy and Planning Studies included in the project deal with a number of important issues: (a) public transport fa- cilities and policies; (b) private vehicle use; (c) traffic engineering; (d) improved intra-city traffic facilities; and (e) consistency between land - il - use and transport policies. Thus the project goes beyond its immediate effect of dealing with a major transport constraint affecting growth in other sectors; it leads into policy decisions and projects that should result in better planning and distribution of resources regionally within the Kuala Lumpur urban corridor as well as nationally. The project should have a major impact on related institutional development. v. The project includes: (a) improvement of about 6 miles of urban road from a dual 2-lane to a dual 3-lane highway, including a dual 4-lane segment of approximately 4,000 feet, together with the construction of five grade separated intersections; (b) construction of three pedestrian bridges crossing the highway and dual 12-foot wide cycle lanes parallel to the roadway for bicycles, scooters and light motor- cycles; (c) execution of the projects's detailed engineering; (d) execution of the following studies: urban transport policy, public transport improvement and additional transport facilities for Kuala Lumpur; detailed en- gineering for a proposed Route 1 highway project; and a study of the Public Works Department (PWD) mainte- nance organization. vi. The total cost of the project is M$ 88.5 million (US$31.6 million), including contingencies. Construction costs are estimated at M$ 54.6 million (US$19.5 million) based on detailed engineering. The foreign exchange com- ponent is estimated at H$ 44.5 million (US$16 million), or 50% of total cost, and would be financed by the proposed Bank loan of US$16 million. Changes in the design of the project introduced by the appraisal mission reduced esti- mated construction costs by about one-third without seriously affecting benefits. A single contract for construction would be awarded on the basis of interna- tional competitive bidding. Tender documents will be completed by October 1972. vii. Road improvement from Kuala Lumpur through Petaling Jaya would lessen the travel time and operating costs of vehicles, thereby reducing user costs and capacity restraints on travel. The resulting quantified benefits compared with the estimated costs of the project provide an in- ternal economic return (IER) of 37%. If personal time savings are excluded the return would be 22%. If the increase in vehicle traffic is assumed to be 20% less than forecast, as a sensitivity test, the IER of the project would still be high, 29% including personal time savings and 16% excluding this factor. These high rates of return reflect the rapid increases in road transport cost and travel restraint occurring if the facilities are-not improved. - Lii - viii. Important non-quantifiable benefits would result from the project works including the improvement of vehicular and pedestrian safety and the support of urban and industrial-growth in committed development areas along the entire 25 mile Federal Highway, particularly in Petaling Jaya. The project i8 suitable for a Bank loan of US$16 million for a term of 25 years including a grace period of five years. MALAYSIA APPRAISAL OF THE KUALA LUMPUR URBAN TRANSPORT PROJECT 1. INTRODUCTION 1.01 The Government of Malaysia has requested a Bank loan of US$16 mil- lion to help finance the improvement of about 6 miles of urban highway from Kuala Lumpur through the adjacent new town of Petaling Jaya, and to finance studies of urban transport policy, public transport improvement and addi- tional transport facilities for Kuala Lumpur. 1.02 Increased capacity of the Federal Highway from Kuala Lumpur through Petaling Jaya was one of several recommendations made in a UNDP financed study entitled "Transport Development in Malaysia", completed in 1969 by Robert R. Nathan Associates, Inc. (U.S. consultants) with the Bank as execu- ting agency. The Bank identified the proposed project to improve about 6 miles of the Federal Highway during an urban reconnaissance mission in 1970, and assisted in preparing terms of reference for the feasibility study and detailed engineering. The feasibility study, including preliminary engineer- ing, was completed in September 1971 by U.K. consulting engineers Freeman, Fox & Partners with British financial assistance. The Government has re- quested Bank financing, a portion of which would be retroactive, to cover the foreign exchange costs of the detailed engineering with tender documents to be completed by Freeman, Fox & Partners in October 1972. 1.03 The project is the Bank's first urban transport project in Malay- sia and should lead to a series of urban development projects. The Bank is currently acting as executing agency for the UNDP funded Klang Valley Study in the project area (para. 2.07), and would assist Government in preparing terms of reference for feasibility studies of high priority projects identified by the Klang Valley Study. 1.04 The report was prepared by Messrs. S. Hara, R. Woodford, and N. Noon (Economists) A. Bergan (Engineering Consultant) and W. P. McCulloch (Urban Affairs Officer) on the basis of appraisal missions in November/ December 1971 and January 1972. Mr. R. Mulligan of the Transportation Projects Department assisted the mission during the final week of appraisal. II. BACKGROUND 2.01 The region including Kuala Lumpur and Port Klang (see Maps 1 and 2) has led modern sector development in Malaysia. Exports, which now center on Port Klang following the Government's policy of encouraging the displacement of Singapore, accounted for 40 to 45% of GNP in recent years - 2- with rubber, tin, tropical woods and palm oil as the leading export prod- ucts. In the Klang Valley transport demand foiZ exports and imports, which are growing by 5.2% and 4.8% per annum respectively, combine with rapid urban growth to place a heavy strain on the transport sector. 2.02 Nearly 25% of public investment in West Malaysia was devoted to the transport sector between 1956 and 1965 (M$0.8 billion out of a total of M$3.2 billion) of which about two-thirds was for roads and bridges. West Malaysia today has a well developed transport infrastructure with relatively high standard roads serving vehicular traffic which, in relation to population, is second only to Japan among Asian countries. However, during the period 1966-1970 regional road investments were curtailed and deferred during the study of Transport Development in Malaysia (see Annex 6, para. 3) which examined and reassessed investment priorities in the trans- port sector. Partly as a result of this policy, the Federal Highway (Route 2) in the Klang Valley is becoming a constraint on development and on the integration of the divided halves of key portions of metropolitan Kuala Lumpur. 2.03 Unemployment, which according to official sources is 7 to 8% nationally and could approach 9% by 1975, presents the Government with a serious challenge. Growth in the labor force is expected to be 3.1% per annum for the next several years compared with 2.6% during the last several years. Employment is expected to benefit from land and agricultural devel- opment schemes but the main burden of absorbing the increased labor force will fall on the manufacturing and service sectors which are concentrated in urban areas. Major urban centers (Map 1), principally on the west coast of West Malaysia, are growing at an average rate of 4.6% annually, with roughly one-third of this growth due to migration. The population of metropolitan Kuala Lumpur (approximately 700,000) has been increasing at about 5.5% per annum, attesting to the rapid growth of economic activity in the Klang Valley region. 2.04 Recent development in the region based on metropolitan Kuala Lumpur has been important to the expansion of modern sector activities essential for the continued growth and diversification of the national economy. Factory development in and around Kuala Lumpur has helped to make the Klang Valley the principal industrial growth region of the country. The expansion of commerce, services and government administration in Kuala Lumpur has also made the region the national growth center for modern tertiary employment. The continued development of these activities in Kuala Lumpur and other urban areas of the region is supported by an extensive national road and rail trans- port system, and by the expanding transport terminal facilities at Port Klang and Subang International Airport, both located southwest of Kuala Lumpur. Water and power facilities are sufficient to support additional growth and two publicly sponsored industrial new towns southwest of Kuala Lumpur provide facilities for future expansion. The Selangor State Development Corporation, which is developing the new towns as well as other smaller development sites in the region, offers particularly effective assistance to new industries. -3- 2.05 Despite such examples of the effective implementation of individual development schemes, many urban facilities, services and institutions in the region are badly strained under the pressure of rapidly increasing economic activity and population. The most serious problems are the lack of con- sistent, complementary planning and the way in which related projects and policies are executed by the several existing urban development institutions (see Annex 1). These problems have been particularly evident in the growth and expansion of metropolitan Kuala Lumpur. 2.06 Studies undertaken by the Government (para. 1.02) have made clear the need for immediate transport access improvements to insure the efficient functioning and orderly expansion of metropolitan Kuala Lumpur. While the population of this large and rapidly growing urban center has nearly doubled since 1957 (Table 1), neither improvements in facilities nor transport use policies have kept pace with growing transport requirements. The critical transport problem centers on the portion of the urban corridor from the commercial center of Kuala Lumpur through the adjacent new town of Petaling Jaya. The rapid growth of population and economic activity within the corridor and the rapid expansion of cross commuting between the two areas has led to a deterioration of access. It is unlikely that further extensions of urban development within the corridor already underway or committed can be successfully integrated into the metropolitan area without major improve- ments in transport facilities and policies. 2.07 A UNDP financed Klang Valley Study, begun in January 1972, by U.K. consultants, Shankland Cox and Associates, seeks to: (a) improve and coor- dinate development planning within the region; (b) increase the Government's effectiveness in implementing development plans; and (c) identify specific high priority development projects for feasibility study and investment. The study, due to be completed in March 1973, should advance the preparation of a series of urban development projects which are expected to form the basis for continued Bank involvement in the region. III. TRANSPORT NEEDS IN THE KUALA LUMPUR - PETALING JAYA URBAN CORRIDOR A. Access Requirements in the Corridor 3.01 Petaling Jaya began development in the early 1950's as a small residential resettlement community adjacent to Kuala Lumpur and was later developed as a sizeable satellite new town. The later phases were built with both factories and housing and were intended to give the new town a measure of self-sufficiency. -4- 3.02 The present dual 2-lane limited access portion of the Federal Highway linking Petaling Jaya to Kuala Lumpur was constructed in 1957 to by- pass the new town which was then still a predominantly residential area lo- cated on the south side of the Federal Highway, with access onto Jalan Klang (see Map 3). The capacity of the Federal Highway has been consciously uti- lized by development authorities as the means to greatly extend and expand the residential and industrial development of Petaling Jaya to the north and west without investment in additional through east-west roads. During this period Petaling Jaya became the most important new industrial and residential area in the Klang Valley. The population of Petaling Jaya has increased from about 20,000 to 90,000 and its surrounding population has grown from about 25,000 to 50,000 (see Table 1). The corridor has the greatest amount of road traffic of any approaching Kuala Lumpur (see Table 2). With no major parallel roads through Petaling Jayw and with much of the traffic within the town having to cross the Federal Highway, the road has become a constraint to the completion of committed development projects and a barrier between the two halves of Petaling Jaya on either side of the road. The urban develop- ment intended to make effective use of the available capacity of the Federal Highway has now overtaken that capacity. The expanding areas in the corridor now depend heavily upon improved access to Kuala Lumpur and across Petaling Jaya if they are to be fully integrated into the rapidly growing metropolitan area. 3.03 Transport capacity on this urban section of the Federal Highway is also important for the operation and expansion of most of the important new regional development schemes in the Klang Valley outside the metropolitan area, such as the second of the region's new towns, Shah Alam, the airport, the expanded Port Klang (formerly Port Swettenham) and related industrial development sites. All these have been directly linked to the Federal Highway and depend on good road access to Kuala Lumpur (see Annex 2). Since 1963 the outer section of the Federal Highway between Petaling Jaya and Port Klang has been a dual 2-lane limited access road like the inner portion but with bridges and other structures built to accommodate a dual 3 or dual 4-lane roadway. The capacity limitations of the urban section of the road through Petaling Jaya to Kuala Lumpur will undoubtedly constrain the greater utilization of the highway between Petaling Jaya and Port Klang. 3.04 Vehicle travel on the Federal Highway from Kuala Lumpur through Petaling Jaya has increased at an annual average rate of more than 12Z over the past 8 years - a rate comparable to that of population growth in Petaling Jaya. About 170,000 person and 72,000 vehicle trips per day are made on this section of road (see Table 3). Much of the transport movement consists of cross commuting; about half the resident labor force of 50,000 in the Petaling Jaya area commutes to jobs in Kuala Lumpur and nearly half of the 45,000 jobs ln letaling JayR area are filled by commuters from Kuala Lumpur (see Annex 2). nie inbound movement is largely the result of both an increase in new jobs in government, commerce and finance within the city of Kuala Lumpur which is being promoted by the government, and an increase in new middle income housing on the periphery of the metropolitan area where relatively inexpensive resi- dential land can be obtained. The outbound movement has resulted in part from the inability of the government and local authorities to create suf- ficient new low income housing in the new towns and areas of industrial ex- pansion despite a recognition of the need to balance jobs and resident labor force. The bulk of the industrial labor force in Petaling Jaya must now be drawn from areas of modest older housing, much of which is in Kuala Lumpur. A more complete analysis of movement patterns is contained in Annex 2. 3.05 In the short term, the factors contributing to a continued con- centration of commercial development within Kuala Lumpur and to the expan- sion of new middle income residential areas outside the city are not likely to be altered significantly. Large areas to the northwest and south of Petaling Jaya are already committed or under construction. Population in these areas is projected to increase by nearly 100,000 by 1980. The present pattern of cross commuting will undoubtedly be reinforced by these develop- ments, as well as by the continued increase in population in both Kuala Lumpur and the established parts of Petaling Jaya. Even on the basis of low population growth expectations around Petaling Jaya (see Tables 1 and 3), total intra-metropolitan and through movements on the Federal Highway be- tween Petaling Jaya and Kuala Lumpur are expected to total about 310,000 person trips per day by 1980 -- nearly double the 1971 total. By 1985 the areas surrounding Petaling Jaya are expected to increase by at least an addi- tional 40,000 persons, and total person movements on the Federal Highway be- tween Petaling Jaya and Kuala Lumpur are expected to total 400,000 trips per day on the basis of low population growth expectations. 3.06 The Government is attempting to improve its approach to the long term problems of continued urbanization and economic growth in Kuala Lumpur and elsewhere in the Klang Valley region. However, the problems of urbani- zation are not easy to deal with effectively. The need to improve the balance between jobs and resident labor force in new towns is particularly important in order to reduce transport investment requirements but this cannot be achieved without added cost to other urban services. Practical measures to be taken by the Government to improve work-residence location should be de- fined in the Klang Valley Study but these should not be relied upon in the short term to reduce radically the growth of transport movements, or the need for increased transport capacity. Transport measures, such as improved public transport services and revised private vehicle policies, could, how- ever, have a more direct impact on the need for and use of transport facili- ties and are considered to be integral parts of urban transport development for the Klang Valley. B. Improvement of Road Based Public Transport 3.07 Substantial improvements in services will be required if buses are to provide car owners with an attractive alternative mode of transport and meet the needs of increasing numbers of persons who must rely on public trans- port. Although bus services and patronage are increasing in the corridor - 6 - and the region and the number of buses in the period 1965-1970 increased from about 800 to 1,400, an average increase of about 11% per annum, bus travel is not keeping pace with total person travel growth (see Annex 2). This is despite historically low fares of about US 1.3 cents per mile which have declined in relation to the overall cost of living and to the cost of private transport use. Studies need to be made of the fares and services necessary to attract passengers from private transport and to serve persons dependent on public transport. Overall fare and policy guidelines should be provided by the Klang Valley Study. More detailed investigation of major operating problems which can be foreseen in increasing and improving bus serv- ices, such as limited revenue potentials on new or improved services at exist- ing fares, taxation levels and formula and routing limitations and terminal deficiencies in central Kuala Lumpur, are to be included in the Urban Trans- port Policy and Planning Studies (see paras. 4.05-4.06). C. Private Vehicle Use Policies 3.08 Improved public transport is a necessary but in itself insufficient means of influencing the growth in demand for private car travel. Other meas- ures specifically aimed at reducing private vehicle travel will also be required to divert significant numbers of car users from private vehicles. In the Klang Valley there are good reasons for considering highly selective vehicle use restraints. Broad measures intended to reduce the overall level of private vehicle ownership or use, such as taxes on vehicles and fuel, do not have wide public support and would be unworkable unless adopted nationally. In addition, experience in other countries indicates that the restraining effect of such policies is only temporary. Average revenues per vehicle user in the region already exceed average road expenditure by a wide margin (see Annex 2) and the use of most road facilities in the region could be unnecessarily penalized. Selective restraint policies to limit the growth of private vehicle travel to and within central Kuala Lumpur are the most obviously feasible and beneficial. A policy to control the provision and use of parking is probably the most practical method though detailed study will be required to assess the form and operation of an inner-city restraint policy. Such study is included in the Urban Transport Policy and Planning Studies to be financed by the Project. D. Alternative Transport Capacity Improvements 3.09 Three basic alternative proposals for improving mainline transport capacity and pedestrian and vehicular cross traffic movement through Petaling Jaya were considered: (a) improvement of rail services; (b) improvement of the existing Federal Highway; and (c) improvement of other parallel roads. -7- 3.10 Despite low fares, less than 500 passengers per day use rail services to Petaling Jaya and many of these are railroad employees who travel at special reduced rates. There are 16 passenger trains operating daily, each consisting of one or two diesel-electric cars with seating for 60 persons per car. Passenger trains share the single track Port Klang line with 18 goods trains and other shunting movements. Present frequencies of passenger train movements are already viewed by the Malayan Railways as a serious operating constraint for freight movements, as passenger traffic is given priority and takes up much of the line capacity. 3.11 The rail line passes along the periphery of Petaling Jaya, about two miles from the main employment areas. In order for rail services to be an attractive alternative to road traffic, it would be necessary to improve both the rail line capacity and the passenger collection and distribution services at each end of the trip. Rail capacity constraints could be re- duced by doubling the tracks, but passenger collection and distribution would remain a difficult problem because stations are not well located to serve commuters. A detailed study was not made of the costs of station re- location work and improved passenger collection and distribution services required in Kuala Lumpur. However, in Petaling Jaya in order to have safe and convenient crosstown connecting bus services to complete many passenger trips it would be necessary to construct overpasses at the Federal Highway which alone would amount to about 45% of the cost of upgrading the Federal Highway. Even then it is unlikely, considering the need for passengers to change travel modes twice and the resulting delays and inconvenience, that upgraded rail service would divert motorists from their automobiles or even be competitive with direct bus service on the Federal Highway. The rail proposal was not found to be as suitable as other alternatives for improving public transport services and would still have required major construction at the Federal Highway. 3.12 Studies have been made of the feasibility of improving Jalan Klang and Jalan Damansara to provide more or less parallel roads which would divert traffic from the Federal Highway (see Map 3). Both roads have narrow rights of way and are constricted by existing development; neither is a limited access road. In order to improve Jalan Damansara to a high standard 4-lane road, it would be necessary to construct a tunnel over 900 feet long through a residential area or acquire all abutting properties and construct the road in a deep open cut. Both roads connect with the Federal Highway so improve- ments would be needed on the western and eastern sections of that road in conjunction with any upgrading of Jalan Klang and Damansara. As in the case of the railroad alternative, both bypass roads skirt the edges of Petaling Jaya and, in order to improve the cross-traffic movements, it would again be necessary to construct overpasses at the Federal Highway. 3.13 Expansion of road capacity in the Federal Highway corridor by im- provement of the highway on its existing alignment is consistent with the present urban development plans by which many committed urban development -8- schemes inside and outside the metropolitan area have been linked to the road on the assumption of continued good access along the existing route. Upgrading of the Federal Highway also minimizes land acquisition and envi- ronmental impact because rights-of-way exist for ultimate expansion of the road along the present limited access portions of the road (the five mile section from Intersection No. 2 to the western terminus of the project, see Map 3). E. Improvement of the Federal Highway 3.14 The appropriate scale of immediate improvements to be made to the Federal Highway has been related to consultants' projections of the likely growth of traffic on the road between 1980 and 1985, i.e. 5 to 10 years after construction. Vehicle volumes on the Federal Highway are expected to grow at a pace slower than in recent years (about 12% per annum) but still at a rapid rate; about 9% per annum through 1980 and 6% per annum from 1980 to 1985. By 1980 volumes would be about 2.2 times the present level and by 1985 about 2.9 times. With 20% reduced growth in vehicle use, which has been used as a sensitivity test (see Table 3), the corresponding increases in volumes would be about 6% per annum through 1985 with 1980 volumes 1.7 times the present level and by 1985 about 2.4 times. 3.15 Four alternative schemes for increasing the capacity of the Federal Highway were evaluated in a feasibility study by the consultants, Freeman, Fox & Partners. They ranged from simple widening of the present roadway to a plan put forward by the Government to construct a second level roadway above the present road, extending the entire distance through Petal- ing Jaya (see Annex 4). These investigations of facilities and expected vehicle travel in the corridor between 1980 and 1985 indicated that neces- sary improvements to the Federal Highway would include: (1) increased in- tersection capacity for through, crossing and turning traffic (intersections being the critical capacity limitation on the existing road), (2) increased road lane capacity for through movements, (3) provision of separate cycle lanes for the safety and convenience of the high volume of users of hicycles, scooters and light motorcycles, (4) provision of grade separated [)edestrian crossings of the road at the few points of pedestrian concentration v'hiucl exist along the present limited access roadway and (5) provision of con- venient bus stops for the limited number of bus transfers exnected to -,be made along the roadway (as an existing limited access road, almost all 7,us passenger loading already takes place on collector roads). 3.16 The proposed improvement is a simplified and more economical adaptation of the consultants' recommended scheme and incorporates each of the necessary improvement elements in a plan for staged construction which closely conforms to near term requirements and also permits further capa- city increases as required in the long term (see para. 4.02). The initial -9- stage to be carried out under the present project includes (a) construction of grade-separated interchanges at the five most critical road crossings; (b) construction of dual 12-foot wide cycle lanes on either side of the main roadway and three pedestrian bridges; and (c) widening of the highway from two to three lanes in each direction with a dual 4-lane segment of approxi- mately 4000 feet. 3.17 The proposed improvement was considered superior to other road alternatives for a number of reasons: (i) the improvement permits the full utilization of existing rights-of-way, thereby postponing the time when additional roads will need to be constructed on costly new rights-of- way in this rapidly developing urban corridor; (ii) the initial improvement provides a level of traffic capacity which is expected to be fully utilized by local traffic in Petaling Jaya after the 1980's even if through traffic is eventually diverted to other new roads (the desirability and need for these are specifically being examined in the Klang Valley Study); (iii) the provision of a third lane in each direction will facil- itate the operation of the intersections remaining at grade, will provide the option of reserving a lane for express buses and will represent the full development of the present alignment. While deferral of sections of the third lane would not appreciably reduce costs, such action would elimi- nate the above advantages; (iv) phased construction substantially reduces costs without materially affecting benefits and still permits full development of the existing rights-of-way at a later stage (para. 4.02); (v) the project's quantifiable benefits when compared with a minimum improvement give an extremely high internal economic return and a very high return when compared with the next best alternative (paras. 5.02-5.03). The returns remain satis- factory when time savings benefits are excluded and traffic forecasts are substantially reduced. The project also equals or surpasses others in its non-quantifiable aspects (paras. 5.08-5.10). - 10 - IV. TEE PROJECT A. General Description 4.01 The project consists of: (a) improvement of about 6 miles of an urban highway from Kuala Lumpur through the adjacent new town of Petaling Jaya, including five grade-separated intersections, cycle lanes, three pedestrian bridges and widening of the highway from two to three lanes in each direction with a duet 4-lane-segment of approximately 4000 feet; (b) relocation of services, including electric and-telephone cables, water pipes and transmission towers; (c) detailed engineering of the above road improvement; (d) studies of additional transport problems in metropolitan Kuala Lumpur, with particular emphasis on transport policies and measures to improve public transport, and a feasibility study and preliminary engineering of com- plementary road improvements; (e) a study of the road maintenance organization of the Public Works Department (NWD); and (f) detailed engineering of about 137 miles of Federal Route 1 (see Map 4). B. Improvement of the Federal Highway 4.02 Changes in the design of the project which were introduced by the appraisal mission have reduced estimated construction costs by about one- third without seriously affecting the benefits. Three interchanges origin- ally included in the consultantst recommended scheme (Annex 4) have been deferred while two others have been simplified. The deferred facilities are not expected to be required until the early 1980's and the project is de- signed to accommodate this. An expansion of bus service in the corridor and the initiation of other measures to reduce the growth of vehicle traffic could delay the need even further. 4.03 The present grade-level intersections create the principal bottle- necks for traffic on the Federal Highway and make cross-town movements in Petaling Jaya difficult and hazardous. The provision of interchanges will - 11 - physically separate these conflicting movements and thereby correct both the traffic capacity and safety problems. In doing so, it will facilitate vehicle and pedestrian movements from one side of Petaling Jaya to the other and help restore the functional unity of this planned comrunity. The inter- changes will accommodate all major traffic movements and will include bus stop facilities designed to permit safe and convenient loading, unloading and transfer of bus passengers. 4.04 The project works would incorporate continuous dual 12-foot cycle lanes with access at each interchange over the portion of the road- way provided with grade-separated intersections. The works would also in- corporate three pedestrian bridges between intersections. Inclusion of these improvements would increase the access and safety of motorcylists, bicyclists and pedestrians as well as improve the flow of vehicular traffic, thereby considerably broadening the user group benefiting from the project works. Cycles constitute more than 20% of current traffic on the Federal Highway, and they outnumber automobiles both in the Klang Valley region and in Malaysia as a whole. Most are low powered motorcycles and scooters which serve as primary transport for many persons, including commuters to jobs in Petaling Jaya. Bicycles, although a declining pro- portion of cycle traffic, are still used in significant numbers. Pedestrian movements across the road are important to the connection of residences and factories in the areas of the crossings and separate crossing bridges would facilitate travel by foot as well as increasing its safety. During negotiations, assurances were obtained that Government would ensure the proper use of cycle lanes (para. 6.01). C. Urban Transport Policy and Planning Studies 4.05 The project would incorporate urban transport studies which would deal with a number of important urban transport and development issues: (a) public transport facilities and policies; (b) private vehicle use policies; (c) traffic engineering and regulation; (d) parking facilities and regula- tions; (e) consistency between land use and transport policies; and (f) the probable need for improved intra-city traffic facilities. These studies, with inputs from the UNDP Klang Valley Study now underway, would seek practical solutions to problems which might lead to the identification of projects im- portant for coordinated urban development. During negotiations assurances were obtained that Government would initiate a program for periodic traffic counts and origin/destination surveys on federal roads in urban areas (para. 6.01), necessary for ongoing urban transport analysis and planning. 4.06 The project studies would include the examination and recommenda- tion of policies to expand and utilize public transport services, both rail and road based. Particular emphasis would be given to short term improvements - 12 - to increase the efficiency and attractiveness of bus services and to alle-, viate present problems of bus operation in metropolitan Kuala Lumpur (para. 3.07). The studies also include detailed consideration of the problems of intra-city transport and in particular would include a feasibility study and preliminary engineering of traffic distribution facilities from the-present project into Kuala Lumpur, including links for efficient connection of buses into the central area. During negotiations assurances were obtained that Government would engage consultants for the studies under terms of reference acceptable to the Bank (para. 6.01). 4.07 The Klang VaLley Study, due to be completed in March 1973, will identify specific high priority development projects for feasibility study. During negotiations assurances were obtained that the findings of the Klang Valley Study would be rem*wed with the Bank._ Terms of reference for any agreed feasibility stud�es, -though not financed under the Project, would be subject to Bank approval, (para. 6.01). D. Road Maintenance Study and Route 1 Engineering 4.08 At the request of .the Government and with concurrence from the Transportation Projects Department, the project would also include (a) a study of the road maintenance organization of the PWD and (b) detailed engineering for improving about 137 miles of Route 1 (see Map 4). Al- though highway maintenance is on the whole adequately funded, maintenance operations could be improved (see Annex 6). It is advantageous to proceed as early as possible with the study, and funding for this purpose has there- fore been included in the project. Detailed engineering of Route 1 started in February 1972. Retroactive financing of the detailed engineering in a second highway project would involve an inordinately long finance period, and it is therefore recommended that financing for detailed engineering of Route 1 be included in the present project, a portion of which would be for retroactive financing not to exceed US$400,000. During negotiations assur- ances were obtained -that Government would engage consultants for the road maintenance study under terms of reference acceptable to the Bank (see para. 6.01). E. Design and Consulting Services 4.09 The Government appointed Freeman, Fox & Partners (U.K.) in October 1971 for detailed engineering of the project works on terms approved by the Bank. The consultants completed detailed engineering for cost estimates in mid May and will complete tender documents in October, 1972. Design stan- dards used for the project are consistent with the general standards adopted by the FWD (Annex 6, para. 19). The consultants are also responsible for reviewing specifications and contract documents prepared by the PWD for procurement and civil works contracts for the relocation of services (para. 4.17). - 13 - 4.10 The Government will retain the services of Freeman, Fox & Partners for the supervision of the main contract in order to maintain continuity of work and avoid delays. This is acceptable to the Bank. The new contract with Freeman, Fox & Partners would be subject to Bank approval. The Govern- ment would also appoint consultants acceptable to the Bank for the Urban Transport Policy and Planning Studies, the Klang Valley Project Feasibility Studies and the Road Maintenance Study. In February 1972, the Government appointed Vallentine, Laurie and Davies of Australia for detailed engineering of 82 miles of Route 1 (Contract I) and a 55 mile extension of the same Route (Contract II) in April 1972 on terms approved by the Bank. F. Cost Estimates 4.11 The estimated cost of the project including service relocation, 1-an acquisition, construction, detailed engineering, supervision, projcct fi- nanced studies, detailed engineering of the Route 1 highway project and all contingencies, is M$ 88.5 million (US$31.6 million). Total foreign ex- change requirements of the project are estimated at M$ 44.5 million (US$16 million) or about 50% of the total cost. The estimated construction cost of the main works, including contingencies, amounts to M$ 54.6 million (US$19.5 million) with a foreign exchange component of M$ 35.5 million (US$12.7 million) or about 65% of the construction cost. Details of the cost estimates are presented below: -14 - L4000' (US 000) Foreign item Local TOta]FoLoral g Total LExchangl 1. Conatruction cost 14,700 27,300 42,000k)- 5,250 9,750 15,000 65 2. Contingencies on 1) Physical (10%) - 1,).70 2,730 4,200 525 975 1,500 Price (20%) 2,940 5,460 8,400 1,050 1,90 3,000 Total construction e t o 2 5 7 M 190500 3. Detailed Egineering of Project Works 480 2,820 3,300 172 1,007 1,179 85 4. Supervision of Project Wirks 1,670 1,630 3,300 597 582 1,179 49 5. Contingencies (10%) on 3) and 4) 215 445 660 77 159 -- 236 6.- Service Relocation 8,528 - 8,528 3,046 - 3,046 7. Land Acquisition 10,000 _ 10,000 3,571 3,571 8. ProJect Managemert 300 - 300 107 _ 107 9. xuala Lumpur >rban Trans- port Pollcy and Planning Studies 353 1,161 1,514 126 414 540 77 10. Study of Road Maintenance Organization 110 450 560 39 161 200 50 11. Contlngencies (20%) on 9) and 10! 93 322 415 33 115 11,8 12. Detailed Engineering of Route 1 Contrmct I 1,470 1,060 2,530 525 379 904 42 Contract TI 1,350 960 2,310 482 343 825 42 13. Contingencies (10%) on 12) 282 202 484 101 72 173 3RA.ND TOTAL 03 ; 7 31.57 1) For details see Table 4 - 15 - 4.12 The cost estimates include a 10% physical contingency to cover possible variations in quantities during construction and a price contingency of 20%. The inclusion of a relatively high price contingency is due to uncertainties arising from the absence of experience with large road projects executed by foreign contractors in Malaysia (see Annex 6, paras. 22 and 23). G. Financing 4.13 The proposed loan would cover the total foreign exchange require- ments of the project, amounting to M$ 44.5 million (US$16 million). The local currency cost, amounting to M$ 44.0 million (US$15.7 million equiva- lent), would be financed by the Government from funds specifically budgeted for the project. Since M$ 4.2 million (US$1.5 million equivalent) of the estimated project costs are directly attributable to Malaysian taxes, the Government's net contribution to the project would amount to If$ 39.3 million (about US$14.2 million equivalent). Annual budgets of PWD would include al- locations to cover the full cost of the project. H. Execution 4.14 The construction program involves three main activities: (a) ac- quisition of land and property within the right-of-way; (b) relocation of existing utility services along the highway; and (c) construction of improve- ments to the main highway including new intersections. Land acquisition must be substantially completed before the award of the main civil works contract. 4.15 Acquisition of land for the project by the Federal PWD is already well in hand on the basis of preliminary right-of-way plans prepared by the consultants in January 1972. Land acquisition should not present any major problems because land for widening the road has already been reserved and more than half of the land required belongs to Selangor State. Private property within the right-of-way will be acquired immediately by placing the estimated cost in escrow pending a court decision on the precise amount of compensation. The acquisition of land and property does not involve any significant problems of resettlement. The PWD has agreed to take the neces- sary steps to complete land acquisition by April 1973 and assurances were obtained during negotiations that land acquisition will be completed before the awarding of contracts (para. 6.01). 4.16 Utility services along the existing highway to be relocated in- clude water supply, sewerage, power and telephone lines. The concerned operating authorities have agreed that the Federal PWD would be responsible for carrying out the relocation. Since the procurement of materials, such as power and telephone cables and accessories, requires a lead time of about six months, the Government has taken steps to place orders for these materials - 16 - in advance, which will be financed out of Government funds. The civil works contracts for relocation and installation of the services would be awarded to local contractors, except for a small portion more suitable for inclusion in the main civil works contract, on the basis of competitive bidding because the works are small and competent local contractors are available to carry out these works. During negotiations assurances were obtained that PWD will complete the relocation of services in such a way as not to interfere with the work of the main contractor (para. 6.01). 4.17 The main civil works contract for improvement of the highway in- cludes widening of the highway from two to three lanes in each direction, construction of five grade-separated interchanges, construction of cycle lanes and other miscellaneous works such as fencing, road markings, traffic signals, road signs, lighting, etc. The Government has agreed with the con- sultants' recommendation that these works should be combined into a single contract because they are concentrated within a relatively short distance of about 6 miles and their construction sequences depend on the progress of each activity. In addition, a single contractor would be able to utilize his con- struction equipment more effectively on various jobs, and problems of divided responsibility with respect to maintenance and safety of traffic during con- struction would be avoided. The contract would be based on unit prices and would be awarded on the basis of international competitive bidding. Local contractors are unlikely to satisfy the pre-qualification requirements for this contract because nearly all highways, except bridges, have been con- structed by the FWD in the past on force account basis. However, local con- tractors are expected to carry out some works as sub-contractors to the main contractor. 4.18 Implementation of the project would he carried out over a four-vear period (see Chart 2). Construction of the main civil works would take aboutt three years to complete with April 1976 as the target completion date. The Urban Transport Policy Study for Kuala Lumpur would begin in September 1972 to be followed by a feasibility study and preliminary engineering of connect- ing facilities to the Federal Highway to he completed in December 1973. De- tailed engineering of Route 1 commenced in February 1972 under contract -ith Vallentine, Laurie & Davies of Australia and is expected to he completed by April 1973. The road 2Iaintenance Study is schedule.l for completion by October 1973. I. Project Management 4.19 Responsibility for highway administration in Malaysia is divided between the Ministry of Communication (MOC) and the Ministry of Works and Power (MOW). The MOC is responsible for licensing, registration and regula- tion and the MOW for construction and maintenance of federal roads including allocation of maintenance funds for state roads. The Federal PWD is the ex- ecuting department of the MOW for construction and maintenance of federal - 17 - roads. It is headed by a Director-General with two Deputy Director-Generals for development and engineering services. The Deputy Director-General for development controls five operating divisions, of which one is the Roads Di- vision which is responsible for the construction of all federal roads. The Roads Division is administered by a Director who controls five sections: implementation, design, planning, project coordination and federal land de- velopment projects. The implementation section is responsible for road im- provement, construction of minor road projects, maintenance of all federal roads and other works (see Annex 6). 4.20 In view of the size and importance of the project and the fact that construction of a road project through international competitive bidding is being carried out for the first time, the FWD will establish a new unit in the Roads Division with exclusive responsibility for implementation and man- agement of all the works included in the project. The unit will be headed by an experienced Project Manager who will be directly responsible to the Director of the Roads Division for all aspects of implementation of the project and would have adequate engineering, administrative and accounting staff to be able to supervise the work of the consultants for the main civil works contract and also coordinate and implement the work on land ac- quisition and service relocations. 4.21 The Roads Division of the Federal PWD had until recently an acute shortage of staff. Of 68 authorized positions for engineers and technicians, 44 positions, which had not been filled, have recently been staffed. Assur- ances were obtained during negotiations that adequate staff would be provided for the Project, in particular for a special liaison office for the Project (see para. 6.01). J. Disbursements 4.22 Loan funds would be disbursed as follows: Main civil works contract - 65% of payments to construc- tion contractors. Consultant services - 60% of total expenditure (representing the estimated foreign exchange component). For the foreign exchange component of payments, made after October 15, 1971 and before signing of the loan agreement, for detailed engineering of the proposed project an aggregate amount not exceeding US$1,000,000 would be financed retroactively. The Government has requested the Bank to consider financing the foreign exchange costs of detailed engineering for the Route 1 highway, including retroactive financing not to exceed US$400,000 for expendi- tures incurred after February 1, 1972. A schedule of estimated cumulative quarterly loan disbursements is presented as Table 5. - 18 - V. tCONOMIC EVALUATION 5.01 The proposed improvement of the Federal Highway to a dual 3-lane roadway with continuous cycle lanes and with grade separation of selected intersections would directly contribute to the efficient functioning and orderly expansion of metropolitan Kuala Lumpur and would greatly reduce the effect of the existing road in separating the two halves of Petaling Jaya. Comparison of quantified benefits and costs associated with these project impacts show the improvemoent to be economically well justified. Assessment of non-quantified benefits end costs provides additional justification for the improvement. -5. Quantified Returns 5.02 The internal economic return (IER) of the Federal Highway improve- ment compared to a "without" alternative 1/ is 37% when benefits from both vehicle operating cost savings and personal time savings as well as the bene- fits attributable to a reduction in travel restraint are included. The re- turn excluding personal time savings is 22Z. These high rates reflect the rapid increases in road transport costs and in travel restraint which would occur if the existing facility were not soon improved. If the increase in vehicle traffic is assumed to be 20% less than the consultants' forecasts (see para. 3.14), transport costs and travel restraint would rise less rapidly but the IER of the project would still be high, 29Z including personal time savings and 16% excluding this factor. 5.03 In addition to a very high IER as compared to a "without" scheme, the selected project gives sufficiently greater quantified benefits than a lesser improvement of road (dual two-lanes with cycle tracks and grade sepa- rated intersections throughout) to justify the additional cost. The IER on the additional investment cost (about US$4 million) under a number of assump- tions is as follows: I/ Actually involving an investment of US$0.8 million in 1973/74 and US$7.5 million in 1979/80 for minimum essential improvements to the roadway. - 19 - Internal Economic Returi (IER) of Increased Investment in a Dual 3-lane Road ove.r a Dual 2-Lane Road (X) Traffic Growth per Consultants' Forecast: Benefits Including Personal Time Savings 31 Benefits Excluding Personal Time Savings 21 Traffic Growth, 20% Less Than Consultants' Forecast: Benefits Including Personal Time Savings 24 Benefits Excluding Personal Time Savings 12 As shown the return is greater than 20% except in the case when for !cast vehi- cle travel is reduced by 20% and personal time savings are excluded In that case the additional investment still yields a return of 12% which is adeouate under Malaysian conditions. It was also found that the beiefits of a greater improvement than the one selected (dual three-lanes with .:ycle tracks and grade separation throughout) would not justify the addit..onal in- vestment. 5.04 A calculation was also made to determine the effect on th! proj- ects' economic feasibility if no improvement were made in future road cap- acity in central Kuala Lumpur. Though not consistent with present (overnment intentions, this revised assumption gives an indication of the effe':t on the project if related road development were greatly curtailed due to p4llicy changes or budget limitations. The resulting IER is 27% with persouial time savings and 13% without. 5.05 The improved travel conditions and increased capacity pro-ided by the alternative road improvement schemes considered produce both "cust- reducing" and "output-increasing" effects and the quantified benefit:s re- flect both of these. The quantified benefits are attributable to oljerating cost and time savings resulting from faster and more unifokm flow o... vehicles between intersections and from reduced stopping, starting and idlinir of ve- hicles at intersections with interrupted flow. These savings reduc, the resource and personal travel costs of road users, reduce tWp number of road users restrained from traveling because of congestion restraint on c,emand and increase net government tax revenues (see Annex 7, para. 6). TIe degree of constraint associated with the various alternatives considered ii. the analysis is summarized in Annex 3. The costs of vehicle operation used in computing these benefits are based on an adaption to Kua-la Lumpur cctnditions of unit costs of vehicle operation in urban areas at various average, speeds observed in the U.K. These costs are shown in Annex 7 and are cons:dered to be low for congested traffic conditions. This introduces a consurvative bias into the return calculation. The value of personal time is based on pro- portions of average wage rates also observed in the U.K. applied to average - 20 - wage rates computed for the study area. Personal travel time savings for adults during non working hours are valued at 25% of the wage rate of the principal wage earner in the household. 5.06 Because of the uncertainty of long term urban travel forecasts and the importance attached to the short term effects of improvement alterna- tives, benefits for only 15 years of project life are considered though the physical life of the improvements would be at.least 25 years. 5.07 The quantified costs of construction used in the economic analyses are the estimated costs, excluding taxes, of construction including a IO0 contingency for variations in quantities and a 10% contingency to cover un- certainties arising from contractor inexperience in Malaysia, supervision, relocation of public utilities, the economic cost of land taken out of other actual or potential uses -for the highway and the economic costs of additional congestion caused by road works during the construction period. Future main- tenance costs- of each alternative-, including maintenance of new road lanes and structures, are quantified as annual costs. B-. Unquantified Benefits and Costs 5.08 Some of the benefits attributable to the project cannot be direct- ly quantified and are not measured in full through their effects on traffic flows. Conversely, some identifiable costs (para. 5.10) are unquantified in the analysis. These unquantified project impacts are seen, on balance, to weigh much in favor of the project and should be considered an important additional confirmation of its merit. 5.09 The traffic projections from which the quantified benefits have been determined imply the completion of development schemes for housing and industry which are already under way or firmly committed. They also assume a pattern of cross traffic between the halves of Petaling Jaya divided by the highway. If the proposed improvements are not made, both the development of new areas and the integration of Petaling Jaya would be very much more diffi- cult. It is doubtful whether the traffic constraint alone would be an ade- quate measure for the difference between the two situations. In this sense the benefits from the project may not be fully represented in the quantifica- tions based on differences in traffic characteristics. In addition, the provision of cycle lanes, pedestrian bridges and grade separated intersections will reduce conflicting traffic movements and provide safer conditions for cyclists, pedestrians and motorists. The reduction in the accident rate which this project is designed to achieve is not quantified. Finally, the studies associated with the project are expected to contribute to more ra- tional use of transport facilities. No attempt at quantification of this benefit is possible but it could be substantial. - 21 - 5.10 The marginal environmental impacts resulting from the improvement of the existing facility are small. Upgrading of the present Federal High- way results in the improvement being almost entirely contained within the right-of-wvy reserve of the existing limited access portions of the road (5 miles from intersection 2 to the western terminus of the project, Map 3). Additional noise and visual intrusion along the present limited accas8 por- tion of the road would be minimal as allowance for ultimate expansion of the present roadway was anticipated in the planned development of adjacent properties. On a portion of the remaining Jalan Lornie section of she road the improvement would deviate from the present alignment. However, most of the properties affected are being acquired for the improvement and some of those remaining are presently subject to redevelopment of a type which should be able to minimize the impact of noise and visual intrusion. Resource and personal costs of relocation resulting from displacemenit of land use activities along the Jalan Lornie road section not covered by ac- quisition and compensation payments included in project costs, are small. Few property owners and tenants are affected and most are occupants of upper middle income residential properties for whom adequate alternative accommo- dation exists in metropolitan Kuala Lumpur. VI. AGREEKENTS REACHED AND RECOMMENDATION 6.0S During loan negotiations, assurances were obtained that: (a) Government will ensure the proper use of cycle lanes (para. 4.04); (b) Government will initiate a program for periodic traffic counts and origin/destination surveys on federal roads in urban areas (para. 4.05); (c) Government will engage consultants for the Urban Transport Policy and Planning Studies (para. 4.06) under terms of reference acceptable to the Bank; (d) the specific projects and terms of reference for high priority project feasibility studies identified by the Klang Valley Study will be subject to Bank approval, though not financed under the present Project (para. 4.07); (e) Government will engage consultants for the study of road maintenance operations (para. 4.08) under terms of re- ference acceptable to the Bank; - 22 - (f) Government will complete land acquisition for the project before awarding the construction contracts (para. 4.15); (g) the PWD will undertake the relocation of services in such a way as not to iaterfere with construction work on the Federal Highway (para. 4.16); and (h) Government will make available adequate staff for execution of the Project (para. 4.21). 6.02 With the above assurances and agreements, the project constitutes a suitable basis for a Bank loan of US$16 million. The loan should be ex- tended over 25 years, including a five-year grace period. ANNEX 1 pae 1 MALAYSIA KUALA LUMPUR URBAN 1RASPORT PROJECT URBAN DElOFf3iT ADMINISTRATI IN THE IANG VALLEr 1. Urban development in the }lang Valley region is the responsibility of a number of federal, state and local government agencies. The Selangor State government has primary statutory responsibility for urban development programs, but the Municipality of Kuala Lumpur and the Federal Government also have considerable urban development powers of their own. Coordination among the various agencies is inadequate, and urban planning efforts tend to be fragmented. The problem of coordination is made more difficult by the complexity of urban social problems. The fLang Valley Study has been undertaken at the request of the Government of Malaysia to address several of these urban planning and implementation problems. A. Administrative Organizations for Urban Development Federal Goverrnment 2, The role of the Federal Government in urban planning and program implementation is primarily advisory. The Federal organizations involved are the Economic Planning Unit, the Town and Country Planning Department and the relatively new Urban Development Authority. 3. The Economic Planning Unit (EPU) which is part of the Prime Minister's Office is in charge of development planning and investment programming for the country. As such, the EPU is concerned with the country's basic policy towards urbanization and with the investment allocation established under the country's 5 year economic plans, (currently the Second Malaysia Plan). 4. The Second Malaysia Plan (1971-75) is the first of country's economic plans to explicitly include urban development aspects. The plan provides general guidelines including: (a) promotian of the growth of manufacturing and comuercial sectors in urban areas; (b) implementation of urban renewal,housing and other projects for low income groups; and (c) development of new growth centers in rural areas. ANNEX 1 Page 2 The Federal Government is thus trying not only to foster orderly development in the already established urban areas, but also to encourage the formation of some urban development nuclei in areas now predominately rural. 5. The Town and Country Planning Department of the Ministry of Research, Technologr, and Local Government provides development planning advisory services to state and local governments. It advises on town planning, urban renewal, and housing projects (in conjunction with the Housing Trust, a financially autonomous part of the Ministry which specializes in implementation of low cost housing projects) and performs basic research. It recruits urban development personnel for state government planning offices and, as a result, indirectly influences planning activities of tb state governments. 6. The Urban Dbeelopment Authority (UDA), was established in 1970 and was given a budget allocation under the Second Malaysia Plan of M$ 100 million (US$ 35.7 million) to implement certain large-scale urban projects in Kuala Lumpur and to coordinate the planning efforts of the State and Municipality for the urban development of Kuala Lumpur. Part of UDA's urban development efforts within Kuala Lumpur are to be directed at reducing income disparities that tend to follow ethnic lines. The development of business premises for Malays, for example, are intended to enable Malays to become moe active in cownerce and manufacturing. 7. The Federal Government alone is responsible for the provision of power, education and health facilities throughout the country.. Low cost public housing schemes are primarily financed by Federal loans to state and local governments. All levels of government are involved in highway construction and maintenance. The Federal Government can acquire land on a compulsory basis for public purposes but requires the consent of the state government concerned except within the Municipality of Kuala Lumpur where no consent of Selangor State is necessary). State Government 8. The Klang Valley region is entirely contained within the State of Selangor. Selangor State, like other state goveznments in Malaysia, has the ultimate authority over land ownership and use within its boundaries. It has power of compulsory land acquisition for public purposes. It can also control the use of land by enforcing land title conditions that specify the activities permitted on a particular lot of land, and by requiring prior approval of any change in use of land. The Federal government must compensate the State for any State lands it acquires for public works. 9. The Selangor State Planning Office is responsible for land use planning. It provides technical advice to local governments on urban plans and asmists in the budgeting of urban projects. The present urban develop- ment plan of the Selangor State is basically consistent with existing trends ANNE 1 Page 3 of urbanization of the region. The plan is general (without any definite implementation period or corresponding urban structure plans), and Wi be revised and refined when the MINOP Rlang Valley Study is completed. The State Planning Office bases its plan for new urban development of more than 4,500 acres including large-scale industrial development in Shah Alam and Port Klang areas (covering 1,000 acres and 1,700 acres respectively) on projections that the urban area of the region will increase from 1.1 million to 2.6 million and that the population of the Kuala Lumpur metropolitan area will increaso from 700,000 to 2.1 million, though the period of the expansion is not specified. 10. The State Pablic Works Department is responsible for the development and maintenance of major drainage works, flood control, and state roads, and the State Water Supply Authority, a self financing quasi-governmental bodo, is in charge of all water supply works. Finally, the State Development Corporation is responsible for implementing large-scale development of residential and industrial estates and new towns. 11. Selangor State Development Corporation was established in 1958 under the name of the Petaling Jaya Developmet Corporation. The corporation plans and supervises the development of residential areas and industrial sites, and receives its revenues chiefly from sale of land After completing the new town development of Petaling Jaya, the corporation has focused on the residential development at Sungei Way- Sabang (outside of Petaling Jaya) and a second new town at Shah Alam. 12. The Selangor State Water Supply Authority is expanding its facilities under a 1969 Bank loan of US$ 3.6 million, which will finance the first phase of the Sumgei Langat Scheme. By the completion of the four phase scheme, the facilities are expected to be adequate through 1985. Local Goverrments 13. The State administers all local governments within its boundaries, except the Municipality of Kuala Lumpur which is administered by the Commissioner of the Federal Capital. Town councils and town boards are financially autonomous, but a majority of their members are appointed by the State. Zoning and other local regulations require State approval. Local government authority covers the provision of drainage systems, local roads, traffic management, recreational facilities, refuse collection, and the enforcement of zoning and building regulations. Road maintenance is facilitated by grants from the Federal Government, while construction of major public works is generally financed by either local revenues or loans from the State. ANNE 1 page 4 14. The Municipality of Dala Lumpur, on the other hand, has the authority to plan and implesnt urban development, and to establish zoning and land use regulations without State approval. With financing from FeWderal Governmnt loans. the Municipality has implemented a substantially greater nuxber of low cost public housing projects and sewerage projects than other local goverments in the region. Although the Municipality has a capable urban planning department, insufficient coordination with the State goverment on urban development plans has often led to inconsistencies- in planning of the metropolitan area. The [lang Valley Regional Committee formed in the early 1960's to coordinate the regional planning efforts of the relevant federal, state and local goverment agecies was disbanded in 1970. In its ten years, however, the Committee drafted a comprehensive development plan for the region which has becom& the basis for the State's development plan. The Urban Development Authority of the Federal Government is expected to reestablish cooperation amog the government agencies for the Kuala Lunpur metropolitan area. B. Probleas in Provision of Public Facilities 15. Low cost public housing is one of the important sectors of urban development. Although federal, state and municipal governments participate in the public houaing effort, housing programs are too limited to meet housing needs. In the past five years, 6,500 low cost housing units were ccnstructed in Kuala Luqpr., and 2,000 housing units were constructed outside the city. Within Kuala Lwumpr a limited number of housing units with reduced rents for the first two years are made available to resettled squatters but the magnitude of squatter resettlements far exceeds the provisions made: a 1969 sample survey revealed that more than one-third of the population of Kuala Lumpur or 150,000 persona are squatters. 16. Low cost public housing (2,000 units) is insufficient even in the new town of Petaling Jaya, developed by the precursor of the Selangor State Development Corporation. The new town has an active industrial sector requiring substantial nmubers of low income laborers, but the residential areas of the new town are for the most part communities of middle and upper middle income groups. This is partly because the Corporation has to develop marketable land to retain financial autonomy. As a result, a large number of the factory workers are drawn from Kuala Lwupur. Shah Alan, the second new town in its first stage of development, may not be much more successful in balancing residences for workers with factory development despite an increasing awareness of the need to reduce commuting requirements. 17. The provision of sewerage and drainage has also lagged in urban areas. Only Kuala Lumpur has a sewerage system, and its system is available to less than 40% of its urban population. In 1972 the UNDP is funding and the World Health Organization is administering a feasibility study for improved sewerage in Kuala Lumpur. Although the need for controlled drainage is acute due to frequent heavy rainfaills, no major drainage system have been developed except in Kuala Lumpur. Little has been done by the State to provide for flood control. ANNEX 1 Page 5 C. Improvement of Development Administration 18. The rapid pace of urban growth in the region has brought about saeleral urban development problema ariaing from the administrative structure, resources and policies of the various authorities in charge of developments (a) Coordination of Urban Development: A number of federal, state and local agencies are concerned with urban development activities in the region, but each agency acts with almost total independence. (b) Provision of Urban Facilities: Except for financially sf supporting projecta, the expanding need for urban facilities required by the rapidly increasing population can only be partially met because of limited financial and manpower resources. (c) Social Problems: The Government is attempting to improve relationships among urban ethnic groups historical;y centered on disparities of income and economic status by rendering special assistance to Malaya and other indigenous people. It seems, however, that the Government is having to proceed cautiously in pursuing these objectives. The existence of these urban social problems add further complication to development policy formulation. 19. The UNDP financed Rlang Valley Study addresses, among other things, a number of these urban development problems. The study particularly puts emphasis on (1) coordination of existing urban development plans, (2) improvement of urban development administration, and (3) identification of high priority projects. The study is expected to be completed in March 1973 and to provide the basis for urban development in the Xlang Valley region. April 5, 1972 ANNEX 2 Page 1 MALAYSIA 1KUALA LIJNPUR URBAN TRANSPORT PROJECT MRBAN DELOPMENT AND ThANSPORT IN THE ILANG VALLEr A. TUrban DeveloLment/Transport Interrelationships 1. The present magnitude and pattern of person and goods movement in the Klang Valley are products of the highly interrelated factors of economic and social conditions, locational patterns, transport facilities and transport use regulations and costa. The patterns of urban expansion and economic activity which shape the development of regional transport movements are examined in Section B. The principal components of regional transport movement and their associated land use patterns are detailed in Section C. Related transport policies and development in the region are described in Section D. B. Urban Development Pattern in the Region 2. Recent location of population and economic activity in the region has been strongly influenced by locational advantages created by the complementary development of key transport facilities and major new town sites strategically placed within the existing regional complex. The expansion of Port Klang and the improvement of transport facilities between the port and Kuala Lumpur at the focal point of the national transport system have defined an area in between Vith the unique advantages of ready access to West Malaysia's major foreign trade port, its large hinterland and the nation's capital. The potential of this major corridor of the Xlang Valley has been exploited and enhanced by the public development of two new towns at Petaling Jaya adjacent to Kuala Lumpur and Shah Alam near Klang. Both are astride the Federal Highway and adjacent to the rail line connecting Kuala Lumpur and Port Slang. 3. The new town developments have accommodated a large portion of the region's industrial growth and a significant portion of its residential expansion though much of the new town residential development has been associated not with the adjacent industrial activity but with the commercial and governmental activity which has remained in Kuala Lumpur. Other increments of residential development associated with these cential place activities have occurred within Kuala Lumpur itself but primarily outside the city along other major transport corridors. Residential development associated with the port has been relatively aelf-contained in Port Klang and Xlang. ANNEX 2 Page 2 4. In 1970 Kuala Iupur had a population of 450,000 within its municipal boundary, abaat 40% of the region's total. Its contiguous built-up area, including Petaling Jaya, contained another 255,000 persons and scattered settlements on its urban fringe containd a further 169,000 persns. Altogether nearly 80% Of the region' s population resides in aWd immedately arowid Kuala Lumpar. The r.ang/Port Klang area had a 1970 population of 113,000, 10% of the region's total and Shah Alan, in the early stages of development, contained less than 2,000 persons. C. Major Regical Lad Use/Transport Components The important spatial interrelationships in the region that give rise to transport venmt are prosently contained within and between the urban growth cnters of metropolitan Kuala Lumpur, Klang/Port Klang and Shah Alan. The significant compnents are those: (a) within Kuala- Lumpur, (b) within Petaing Jaya, (c) between Kuala Luwpur and Petaling Jaya and (d) between uala Lumpur and Shah Alam-Elang/Port Elang. These components are assessed in the following paragraphs. The data m Which the assessment is made is derived primarily from previous consultant studies. Land use dAta is not syatematically gathered or updated. Traffic information is available from regular Federal FWD and municipality counts as well- as consultant surveys. However, the periodic counts made are not comprehensive.(the PWD does not make counts within the urban areas) and do not include origin-destingation surveys also needed to update urban road investment programs. Kuala Lumpur 6. The present urbanized area of Kuala Lumpur has extended beyond the municipal boundary in each of the corridors served by a major road (see Map 2). However within the municipal boundary there is sti11 considerable developable land and the gross population density is less than 25 persons per acre (p.p.a.). Higher densities of about 60 p.p.a. eodst to the north and southeast and localized densities in scattered public housing estates may reach 200 p.p.a. Gradual infillin of residential development has and will continue to increase overall densities but concentrated corridors of high density residential develop- ment have not appeared and are not anticipated. 7. Commercial activity in Kuala Lumpur and the region has its greatest concentration in and around the 3/4 square mile central commercial area, a small, medium density center roughly bounded by the proposed Inner Ring Road, Jalan Kuching and Jalan Birch. In 1970 the area had an estimated employment of about 80,000 and somewhat lower density commercial wedges extend outwards to the east and north. A concentration of government administrative activities is located in adjacent areas to the west and south of the center. Apart from this inner-city area, there are no significant employment concentrations in Kuala Lumpur. Substantially increased private and public office development in and around the center ANNE 2 Page 3 is permitted in the present land use plan and is being promoted by government development incentives. The municipality is about to carr out a periodic review of its statutory land use plan and the .lang Valley Study will assess these policies. In the meantime locations well outside of central Kuala Lumpur do not appear to be favored by developers and inner-city commercial development continues. 8. The composition of present estimated internal transport movement in Kuala Lumpur is summarized in Table 1 and the volume of movement entering or leaving is summarized in Table 2. On the order of 300,000 vehicle and 600,000 person trips per day are estimated to be made between Kuala Lumpur locations. About 67% of vehicular movements are estimated to be made by car, 19% by motorcycles, 3% by bus and 11% by truck. Over one-third of passenger movements are estimated to be made by bus. Since 1963 internal vehicle movements are thought to have been increasing on the order of 5% per anmum, much lower than the rate of traffic entering or leaving the city. External movements have increased to over 230,000 vehicles per day, an average increase of about 13% per annum over the period, though the current rate has declined to about 10% per annum. Travel in Kuala Lumpur is significantly influenced by these large external movements which have grown in parallel with the city's development as the commercial, retail and cultural center of the region and the national capital. Within Kuala Lumpur, movementa are highly oriented towards the central commercial area. In 1963, over 45% of internal and 25% of external travel in Kuala Lumpur was to and from or within the area. Subsequent development has probably maintained this pattern. 9.. The transportation pattern in Kuala Lumpur reflects the dominance of private road transport which prevails in the region and the policies within the city to develop and improve facilities to cater for increased traffic aasociated with the development of the city and through traffic movements. The details of transport policies and develop- ment in the city are examined in paras. 34 to 38. Petaling Jaya 10. The present urbanized area of Petaling Jaya encompasses the new town itself (with a population of about 90,000 persona) as well as the developing town of Stmgei Way-Sabang directly adjacent to the northwest (15,000) and a number of urban aettlementa to the south (30,000). Petaling Jaya town has approached completion and gross population densities average about 20 p.p.a. The developing areas to the northwest and south are of somewhat higher densities. The residential areaa in Petaling Jaya contain a wide range of houaing types though middle income housing is more heavily represented than in Kuala Lumpur. Future lower and upper middle income housing development around Petaling Jaya town is ezpected to continue at a rapid pace and by 1985 population may be about 1.7 times that at present. ANNE 2 Page 14 U1. Apart from State and Federal Government office- buildings, comnmercial devlopment in the area appears to be confined to that - required to serv local needs. Industrial development, however, is significant and more than 300 factories with an estimated employment of about 12,000 are located in Petaling Jaya town. An additional 150 acre industrial site in Sungei Way-Subang is under development. Tbtal employment in the Petaling Jaya area is now about 44.,000. Increased industrial and commercial dvelopment are expected and total employmet may be about 1.7 times the present total by 1985. 12. The composition of estimated present internal transport movement in Petaling Jaya town and its immediately surrounding develop- ment is summarised in Table 1. Approximately 80,000 internal vehicle and 130,000 internal person trips are estimated to be made pe- day. Past rates of growth are not known but the population growth of the area from about 40,000 to 140,000 from 1957 to 1970 is indicative. Zth the substantial completion of deelopmet within Petaling Jaya town, the urrent growth rate of internal travel is probably about 10% per annum. About half of existing movments cross the Federal Highway, a total of about 50,000 vehicle movements per day. 13. The internal travel pattemn within the Petaling Jaya area is greatly influenced by the high proportion of external trips to and from Kuala Lumpur (see paras. 16 to 21). Only.about half of the resident - labor force works in the area, the renainder commute primarily to Kuala Lumpur. Conversely, nearly 40% of the workers employed in the area commute from Kuala Lumpur. In total there are about 95,000 external vehicle trips to or from the Petaling Jaya area, more than the number of intemnal trips. 14. By 1985 the population and employment of the Petaling Jaya area are expected. to be about 1.7 times the present level, much of the growth occurring outside Petaling Jaya town itself. Travel movements are still expected to be dominated by a high proportion of external movements. Internal and external vhicle movements were forecast by consultants (para. 3.14) to increase by about 2.6 times with substantial growth in private vehicle use. Internal movements across the Federal Highway will increase accordingly while those on the Federal Highway will increase by a much greater amount as development extends along it to the west. 15. The transport pattern within Petaling Jaya reflects the regional dominance of private vehicle travel in addition to the somewhat greater affluence of somecof its residents. It also reflects the conscious anticipation of the need for high standard road facilities to cater for high volumes of person and goods travel. The details of road development and transport in the Petaling Jaya area are examined in paras. 39 and 40. ANNEX 2 Pg 5 Kuala Lumpur - Petaling Jaya 16. Because of their physical prodimity and functional specialization, KRala Lumpur and, Petaling Jaya are highly interdependent in terms of exchange of persons (mostly workers end ahoppers), goods and services. The continued growth of activities in Kuala Lumpur and Petaling Jaya siilar to those alrady existing indicates that future interdependence win probably reinforce the present movement pattern between the two urban centers. 17. - The large inbound commuting movemnt into Kuala Lumpur that has developed in the Federal Highway corridor i8 also common to the other corridors of urban expansion in the metropolitan area and is reflected in the rapid traffic growth on all road approaches to Kuala Lumpur, (see Table 2). It has resulted from the combined growth of new jobs in government, commerce and finance in the inner areas of Khala Lumpur which is being promoted by government development incentives and the concentration of new middle income housing in areas outside the Municipality of Kuala Lumpur where sufficiently plentiful and inexpensive residential land can be assembled. The Municipality is about to carry out a periodic review of its statutory land use plan and the Klang VAlley Study will assess these policies. In the short term at least, however, the factors oontributing to a continued concentration of commercial development in and around the center of Kuala Lumpur and the expansion of new middle income residential areas outside the city are not likely to be altered significantly and the existing inbound movement pattern into and out of the city will !intensify in all corridors of urban expansion. 18. The outbound portion of the cross-commuting pattern in the Federal Highway corridor has resulted in large part from the general inability of the government and local authorities to create sufficient new low income housing in areas of industrial expansion. The bulk of the industrial labor force must now be drawn from areas of modest older housing, much of which is located in Kuala Lumpur. Petaling Jaya does have a considerable amount of low income public housing, 2,000 units, but occupancy is not dependent on job location in the town. Obviously more industrial worker housing could be constructed on the developing outskirts of the town but with multiple worker households which predominate in the region this might only aggavate the inbound comuting problem to Kuala Lumpur. As long as the outbound conmuting volumes are less than that of the inbound flow, transport facilities required for the inbound commuters can be utilized with only a low marginal cost to the community. Acceptance of such a reverse commuting pattern also allows the Government to economize on new housing which is very capital intensive. 19. The composition of movements to and from Kuala Lumpur and Petaling Jaya is summarized by Table 1. The predominate flow of persons is of Petaling Jaya residents traveling to and from Kuala Lumpur, consisting of nearly 120,000 person trips per day; the reverse flow of Kuala Lumpur ANNENT 2 Page 6 residents amounting to- about- 72,000 person- trips per day. About 60% of the vehicle movemets are cars, which is equivalent to the current norm in urban areas of the region. Motorcycles comprise nearly 25% of vhiclular traffic, we11 above the regional norm. This results frow the large outbound Kuala Ltuiuur to Petaling Jaya worker movement by motorcycle, most of which in destined for the industrial: areas of Petaling Jaya. Ban movements comprise about 2.5% of vehicle- volumes and trucks about 12%, both near the urban norfs in the region. Despite relatively low bus volmes, buses carry about 30% of persons traveling between Kuala LImr and Petaling Jaya and patronage has been increasing at about 6% per anmum. Rail movements botwen Kuala Lumpur and Petaling Jaya are insignificant and. a total of only about 500 passengers per day are carried to or from Kuala Lwupr on the Port glang line, less- than half of which are boundt fbr Petaling Jaya. 20. The relative iMportance of the Petaling Jaya movement as- compared with other external Kuala Lumpur movements is shown in Table 2. Total movement in the southwest corridor from Kuala Lumpur- (excluding motorcycles) totaled 90,000 vehicles per day, nearly 40% of all external movements fron Kuala Lupr. The Petaling Jaya-Ktiala Lumpur component of this movemet (excludin motorcycles) totaled 64,000 vehicles per day or more than 25% of all external Kuala Lumr movements. It remaina the dominant external movment to and from Kmala Lumpur. - 21. The transport pattern between Kuala Lumpur and Petaling Jaya reflects the regional dominance of private vehicle travel, particularly- the extensive use of motorcycles by industrial workers conuumting to outer parts of the urban area. The details of related road development and policies are examined in paras. 34 to 40. Xhaala Lumpur - Port Rlang 22. The regional activity patterns giving rise to through movements between Kuala Lumpur and points beyond Petaling Jaya are associated with the now town development of Shah Alam, Subang International Airport and Port Rlang (see Map 2). Shah Alam is 10 miles southwest of Petaling Jaya and is planned as the new Selangor State capital. It is to include significant industrial development and now contains more than 10 large scale factories. Residential development is presently insignificant. Subang International Airport is 5 miles west of Petaling Jaya and is linked to the Federal Highway. The airport was built in 1964 and traffic has increased to about 1,500 passengers per day. Port Nlang is located 25 miles southwest of Petaling Jaya and is rapidly developing. In 1970 it handled about 2.7 million tmns of cargo. 23. The composition of through movements in the corridor between Kuala Lumpur and Petaling Jaya is summarized in Table 1. Approximnately ANNEX 2 Pae 7 12,000 vehicles and 23,000 person trips are made per day. A very high proportion of the vehicle movements, 17% are heavy trucks, about 8% are light trucks, 58% cars and 17% motorcycles. The significant number and high proportion of heavy trucks is associated with movements to and from Port Klang and the developing industrial areas of Shah Alam. Total road movement generated at Port Klang is not known but more than 5,000 persons are employed at the port and about 500 heavy trucls per day take on or discharge cargo. At presents about 75% of import tonnage and 60% of export tonnage at the port is carried by road and the road proportions of both are increasing. Forecasts indicate an average annual increase in Port Xlang throughput of about 10-15% over the next 5 years. The present development of port facilities to handle an estimated 1,000 containers a week by mid-1973 has raised the possibility of significant future container movements by road and rail between Kuala Lwupur and Port Klang. 24. Road traffic generated by activities at Subang International Airport averaged about 4,000 vehicles per day in 1970, almost all of which is destined for Kuala Lumpur and points beyond Petaling Jaya. Provisional forecasts for passenger, air freight and air mail volumes at Subang Airport suggest that each air traffic cooponent may approximately double by 1975 and double again by 1980. Correspcnding increases in road traffic to the airport can be anticipated. Continued urban expansion in Shah Alan and other smaller developments between Khala Lumpur and Klang will also add to future through xoveuamts of persons and light goods in the corridor. 25. The transport pattern between Ktiala Lumpur and Port Klang reflects the dominance of road transport which prevails in the region though the single track rail line carries about one-third of Port flang tonnage as well as a significant proportion of bulk goods to industrial plants along its right of way. The details of road and rail transport development between Kuala Lumpur and Port Klang are examined in para. 41. D. Transport Policies and Development in the Region Transport in the Region 26. The present magnitude and pattern of person and goods movement in the region reflect economic growth and urban expansion as well as the general absence of significant transport constraints in the form of grossly inadequate facilities or severe restraints on the use of any available mode. Under such circumstances transport users have demonstrated a marked preference for road based passenger and goods transport and road movements predominate in the region. Road transport in the region is examined in paras. 28 to 41. ANNE 2 Page cJ 27. Rail in significant for Tegional as wn1 as inter-regional bulk goods flow but its present impact on overall goods and passenger movements in the region is quite limited. The present minor role of rail in accmodating and influencing regional travel movements will continue ulesa deliberate attempts to transfer goods and passengers to rail are made. This is not likely to be the case- until such time as lengthy camxter and other porsan movements eventually develop in the region. Eve in the long term, road transport will remain the dominant means of trasport and the determinate of major travel patterns. Rail transport in the region in eam1ined in paras. 42 to 46.e Road Transort Developmnt 28. The profera oft transport users for road based travel and the growth of populationt and economic activity has led to a rapid increase- in the number of motor vehicles available for person and goods movement in West Malaysia and the region (Tables 3 and 4). Taxes and liewse fees on vehicles and tams on motor fuels are levied at constant high rates throughout West Malaysia. on-rent estimated combined yields of thes taxes in West Malaysia and the 1lang Valley region are shown in Table 5. The bulk of revenues are derived from annual,road tax fees (based on the engine size of cars, a flat rate for motorcycles, the gross perizitted, loaded weight of trucks and permitted, passenger capacity of buses) and the recently imposed (1970) domestic duty levied an the ex-factory value of locally assembled vohicles (at the rate of 25% for cars, 20% for motorcycles and 15% for trucks and buses). Import duties are ufficiently high to eliminate significant importation of all bat specialized motor vehicles and revenues are correspondingly small. Present car ownership and use taxes are designed to extract high revenue from car owners but are not intended specifically to limit either ownership or use. The government is sensitive to the immediate needs of maintaining high revenue yields and of gradually expanding the market for local car assembly plants which have surplus capacity. 29. Automobile registrations in the region totaled about 70,000 at the end of 1970 and are increasing at the current rate of about 10% per annum (Table 4). Motorcycle registrations totaled about 70,000 and are increasing at a rate of about 15% per annum. Although current levels of car and motorcycle ownership in the region exceed West Malaysian averages, the rates of increase for both are comparable to those for Wbst Malaysia and are declining. WLth a population increasing at an expected rate of 3.3% per annum, however, the number of cars and motorcycles in the region are expected to increase to more than 160,000 f .7 % per annum) and 190,000 (6.9% per annum) respectively by 1985 unless present ownership policies are significantly altered. At present there are about .28 cars and .29 motorcycles per household and probably about 45% of households have some means of motorized private transport. By 1985 there would be about .48 cars and .57 motorcycles per household and probably about 80% of households would have some means of motorized private transport. AXNNEX 2 Page 9 30. Despite the possibly high future level of private motor vehicle ownership there will be an increasing number of households dependent on public transport as the sole or primary transport means available to the majority of their members. The number of households in the region without a car or motorcycle or owning only a motorcycle vill increase from about 150,000 to about 200,000 by 1990. Bas serrices and patronage are increasing in the region and the number of buses in the period 1965-1970 increased from about 800 to 1,400, an average increase of about 11% per annum. More than 800 of the present fleet are operated by public bus carriers and the increases in this portion of the fleet over the period represents an investment on the order of M$ 10 million to M$ 15 million. The regional taxi fleet is also increasing at a rate in excess of the Wbst Malaysian norm, about 12% per annum. Steady expansion of bus and taxi fleets at somewhat lower rates is expected if present transport policies continue, though revised public transport policies could result in more rapid expansion of bus services and fleets (see para. 3.07). 31. Nationally, the lack of enforcement of regulations as to the use of the only type of readily available road transport permit (that available to vehicle owners for the exclusive haulage of their own goods) is considered to have led to the widespread misuse and disproportionate growth of that type of permit and of an excessive growth of the trucking fleet as a whole. The validity of this assessment in the region had not been examined in detail but it is clear that the need for fast and flexible service over short distances can only be provided by truck. In 1970 there were more than 17,000 trucks registered in the region, nearly one-third of the West Malaysian total. Their numbers are increasing at more than 7% per annum, a rate higher than for Wbst Malaysia as a whole. With no major changes in the operating environment of commercial road vehicles the number of trucks could be expected to grow a slightly lower than present rates. However, due to a 65% increase in the average size of heavy trucks anticipated by the feasibility study consultants (from 6i to 11 tons) this type of vehicle will increase at only about 3% per annum in the next 15 years or so. Anticipated changes in road transport licensing procedures could also result in greater increases in truck haulage and the vehicle fleet than would a continuation of existing policies (see para. 50). 32. There are more than 750 miles of public roads in the Elang Valley region (Table 6), about half of which are federal and state roads. During the period 1966-1970, regional road investments were curtailed and deferred due to the Transport Development in Malaysia atudy then in progress (see Annex 6, para. 3). Regional road development expenditures amounted to only about M$ 30 million (Us$ 14.3 million) and maintenance about M$ 18 million (TJS$ 6.4 million) (Table 7). The bulk of road development expenditure was made on federal and state roads, though some of this - espenditure was made within local authority areas. Total local authority road development expenditure is not known but the significant expenditures were made in Kuala Lumpur (M$ 4.2 million (US$ 1.5 million) of which ANNEX 2 M$ 3.4 million was Federal grant) and Shah Alam (M$ 4.0 million) where 25 miles of new road and two major grade separated intersections were buiUt as a part of the new town development scheme. In the 1971-1975 period of the Second Malaysia Plan regional road development expenditures are estimated to be about 1$ 210 million (US$ 75 million) (excluding small amounts of local authority and private developer road investments) and maintenance ependitures (excluding small local authority outlays) are estimated to be about M$ 25 million (US$ 8.9 million). The large increase in road development expenditure is associated with previously deferred and newly planned improvements of federal roads approaching Kuala Lusnpur, including the Federal Highway outs 2 from Kuala Lumpur through Petaling Jaya,, Route 2 northeast, and Route 1 north and south (see Hap 3). 33. Total motor vehicle tax revenues in the region are estimated to have totaled about, 3,400 million over the period 1966-1970 (Table 5) more than eight times the accountable road expenditures. Asuming no changes in motor taxatiom rates, regional revenues might be expected to total more than M$ 650 million (US$ 232 million) over the 1971-1975 period, more than two and one-half times the projected road expenditure. Despite the overall road revenue surplus in the region, the structure of existing road user charges does not have the intent or effect of ratioming scarce road space or causing shifts in the modal distribution of travel which might economize on facility requirements. The need for more flexible and responsive tranaport tas and other user charges such aa fares and parking charges an elements of an overall policy for the region is apparent and will be one of the major issues to be investigated in the cours of the Urban Transport Policy and Planning Studies which would be included in the proposed project (seo paras. 3.08, 4.05-4.06). 34. Road development in the region has been loosely related to unofficial outline network development plans. Actual implementation priorities within the plans depend on the availability of funds, comparative congestion levels and the Jurisdiction of the implementing agency. Within Kuala Lumpur, the Municipality has attempted to develop and improve facilities consistent with the network recommended in a 1963 KuAla Lumpur Transportation Study but lack of funds have forced it to concentrate on short term improvements to relieve current bottlenecks which might inhibit the desired pace of investment in office and retail space in the city. The Federal PWD has had more funds at its disposal and has concentrated on new facilities to facilitate "through" traffic. The actions of both agencies have served to upgrade and rationalize the primary road pattern in Kuala Lumpur which consists of 8 major roads radiating from the central commercial area and a partial ring road 2 miles from the center (Map 3). Recent road improvements have not done much to supplement or improve the few through roads that exist in the center and circulation is achieved via circuitous routing through narrow one way streets with closely spaced intersections. The poor road system in the center particularly affects the operational efficiency and allowable sizes ANNEX 2 of buses and can be ccnsidered a major obstacle to the improvement of the quality and capacity of bus services. The infrequent crossings of the flang and Gombak rivers are also severe traffic bottlenecks about which little has been done. 35. The adequacy of existing road facilities in Kuala LImpur have not recently been measured in tem of travel speeds or delays but it is apparent that congestion has yet to become a critical travel deterrent, though it is beginning to pose an important operational problem for peak period bus services. Wlthin the central commercial area, circuitous routing and close spacing of intersections impose considerable travel time penalties on traffic even when volumes are low and at peak periods very considerable delays frequently occur. However, because the center is limited in sie and the radial routes on its periphery are still not grossly inadequate, orerall travel times to the center even in peak periods are quite tolerable. The ability of the inner-city road system to albsorb additional traffic resulting from increased private car use or from more intensive devlopment is, however, limited. Present transport policies do not adequately face this problem and elements of the proposed Urban Transport Policy and Planring Studies are intended to remedy the situation (see paras. 44o5-4.06). 36. The central conmercial area contains about 6,000 parking spaces including 2,000 on public streeta and alleys, 900 in public parking lots and 2,300 in private parking lots. Almost all on-street spaces in the very center have been removed as one of the few available means to increase the capacity of the limited road system. Most private spaces are reserved for building occupants and are used by commuters, often without direct cost to the individual. Public spaces are available on an unlimited time basis and hourly rates are so low (US 7 to 8 cents) that many spaces are occupied by long teon parkers including commters and spaces are not effectively rationed. Despite these parking supply problems in the center it is probably still true that parking does not yet act as a significant restraining influence on cpar use and in most cases cars are still able to provide extremely convenient door-to-door serice. Present development regulations require substantial ---site parking provisions in new buildings and seem to be intended to perpetuate the present convenient automobile access to sources, of,trave "Iedand but developers find it difficult to comply with the required provisions.* There is doubt as to whether the present standards are technically, financially and environmentally feasible for the likely pattern of new commercial development and whether the amount of parking which could be so created would be in balance with the capacity of the future road system. The unresolved aspects of parking provision and use in the inner city are proposed as the subject of one phase of the proposed Urban Transport Policy and Planning Studies (para. .05). ARM 2 37.. Ba services within and to Kuala Lumpur are provided by- - nim private ban companies and other services in the region are provided by an additional five carriers. The Sri Jaya Transport Company wbich operates nely afll the internal romtes of KDala Tnr and Petaling Jaya carried about 70. million paasngers in 1970 While other companies operating regeoal. services into Kuala Luiipr carried approximately 85 millio pasgers. Bus travel on Sri Jaya services within Ka la Lmpur (about two-thirds of the total) has not increased beynd 1s3 million passegrs per annum since first reaching_that level in 1966 but there are indcations that the volumes of Kuala Lupur passengers carried by other companies are increasing. Baa f-rea are proportional to distance and have remained contant at their present level of about US 1.3 cents per mile sic World- War II., Despite this low historic fare level all carriers serving KuwY Lmpur have maintained profitabilitr in face of rislng equipment, operating and-tax costs. Present termifal facilities in Kuala Lumpu are inadequate and routing ant acesso are also in need of considerable imprvnt. These aspects of public transport as well as the potentiaL role of rail public transport, are includd as one phase of the proposed Urban. Transport Policy and Planning Studies (paras. 3.07?, 4.05-4o.06). 38. The future development of transport in mals Lur has not bee. recently studied and the recaondations of the 1964 Kuala- Lwmr Transportatiom Study are. no laner fully releant. The road investment proposals of that studyt totaled M$ 161 million (US$ 57.5 mllion) tbrough 1983. The Municipality anI Federal PWD have completed some sections of improvement but implemntatim is well behind the recammded schedule. However, rights-of-way reservations for the Vstem are continuing to be protected and the pattern of improvemets envisioned by the study will likely be the basis of future road developmnt. The Municipality does not have an overall transport development policy related to its own land use policies or to regional influences on the city. Neither does it have complete control of transport developmet in the city. Considerable emph"a ill be given to the problems of Kuala Lumpur's transport organization, facilities and user policies during the course of the flang Valley Study. In the mantime it is obvious that continued concentration of comaercial development in and around the center of Kuala Lumpur and the expansion of new residential and industrial centers outside the city will intensify the existing road based movement pattern-into and out of the city. It is also clear that fuitwer traffic engineering measures and road investments may be required and shos2A be examined along with public trans- port and urban transport policies by detailed studies such as those proposed in the Urban Transport Policy and Planning Studies (paras. 4.05-4.06). 39. The road system in Petaling Jaya town is highly developed with local roads connecting with a circular pattern of collector roads bringing traffic to 5 intersections on the Federal Highway. The present system was designed and implemented in conjunction with the development of the new ANNEX 2 Page 13 town. Roads being developed in the surrounding areas to the north connect into this system while those to the south connect with Jalan Xlang. Apart from problems of crossing the Federal Highway, the system in adequate for considerable increases in traffic. Similarly, related facilities such as parking are adequate for present require- ments and no controls presently exist. Buses operate on most of the collector roads and some local roads and the patronage within Petaling Jaya town is increasing. Since 1963 Sri Jaya Bus Company has expanded its routes from 12 to 43 and the size of its bus fleet from 86 to 185, mainly to increase its services to newly developing areas in the Petaling Jaya area. 40. Construction of local access and connecting roads in the new areas outaide Petaling Jaya town will be required to accommodate some of the future movement but facilities with the town itself are considered generally adequate without major improvement. The Sri Jaya Bus Company has successfully extended its services to newly developing areas around Petaling Jaya when they are still in the early stages of completion and the company has plans to further extend services as development proceeds. Means are needed to develop and sustain bus transport services to meet the demands of those without private means of transport and to meet the requirements of an alternative transport mode for persons who may be divertedfrom private vehicles by means of policies and measures to be identified in the Elang Valley Study and the proposed project studies of urban transport. Otherwise the existing internal road system of Petaling Jaya and the improvement of the Federal Highway should be sufficient to meet future transport requirements without extensive transport policy revision. 41. Continued urban expansion between Kuala Lumpur and Port Rlang will add considerably to through person and goods movements in the corridor. The present dual 2-lane roadway of the Federal Highway between Petaling Jaya and Port Klang will be adequate for most of its length for a considerable time, however, as grade separated intersections to the airport and within Shah Alam already exist. Within Klang and Port Rlang proposed improvements and bypass sections estimated to cost on the order of M$ 25 million (US$ 8.9 million) have been proposed by the Federal PWD. Aside from bulk goods movements, the parallel rail line will not be a feasible alternative for goods and person movements for a considerable period (see paras. 45, 46). The major concerns for transport policy in the corridor will be development of adequate bus public transport service and the location and design of connecting facilities to the Federal Highway. Most of these issues will be addressed in the Klang Valley Study and the proposed project studies. Rail Transport Development 42. The rail network in the region consists of the single track western main line of the national system (extending from Singapore in the south to Padang Besar in the north where it joins with the State railways ANNEX 2 Page 14 of Thailand, Map 1) with short branch lines from Kuala Luur to Port Klang (28 miles), to Apang (6 miles) (Map 2) and sub-branches to Market Street Station, Sultan Street Station (Map 3) and to Batic Caves (Map 2). !ich of the goods traffic in the region consists of medium and long distance through movements to and from the ports of Singapore and Klang. Most trains except unit trains of petroleum, clinker, iron ore, timber and liquid chemicals are re-assembled as they pass through Kuala Lumpur. Traffic through Kuala Lumpur is nearing the capacity of the centrally located yard and a new outlying site on the southern main line is under active consideration. Workings on the Port Klang branch line are also nearing the capacity of the single track line and scheduling is very tight. At present there are 16 daily passenger train moaements (each train consisting of a one or two unit diesel-electric car with a ma3mum seating of 60 or 120 persons) and 12 goods train movements along the length of the line as well as 6 limited goods shunting movements. 43. In the period 1966-1970, major investments in trackage of about M$ 900,000 were made within the region (Table 8). The doubling of track between the Port Klang and Salak South junctions (M$ 595,000) removed an operational bottleneck for movements to and from Kuala Lumpur on the southern mainline. The investment in sidings on the Port Klang branch line (M$ 328,000, of which over two-thirds was at the expense of the Selangor State Development Corporation and individual factory owners) was to improve access to developing industrial areas and to reduce switching bottlenecks on the line. Operations in the region have also benefited from modernization of rolling stock and the addition of larger capacity diesel locomotives. 44. The present rail line between Kuala Lumpur and Port Klang passes only on the periphery of the new towns of Petaling Jaya and Shah Alam and the passenger stations in these urbanizing areas are not easily accessible to residence or work locations. Only about 500 passengers per day utilize the service, many of whom are the railway's own employees who travel to and from work at special reduced season rates. The present frequencies of passenger trains are already viewed as a serious operating constraint for freight movements on the single l�ne track as they take priority in scheduling and take up much of the practical capacity of the line. A recent Malayan Railways report has established that the short run marginal costs of the passenger operation on the Port Klang line are about M$ 215,000 per annum, more than four times the annual revenue of M$ 45,000. The management is considering a recommendation to reduce passenger services to four peak period trips daily and is making a similar study of the Ampang-Sultan Street passenger service. ANN2 2 Page 15 45. The volume of regional freight movements by rail has tended to decline as a reasult of the capacity limits of existing tracks, the lack of existing sidings in industrial areas, the disinterest of new factories locating near rail lines to camitruct sidings, the one to two day terminal times for most movements through Kuala Lumpur and freight rates not significantly less than those by road. Rail authorities are concentrating their efforts to develop rail traffic In the region on better serving the growing bulk goods and medium, to long distance general goods movements for which they can effectively compete with road transport. Improvement of these services on the existing line is considered to be dependent on reduction of the passenger service frequencies. For the near future the goods traffic appears to have a reasonable priority for use of the Port Klang line. 46. In the period beyond 1980 when it may become desirable to double track the Port Klang line for goods traffic handling, the greater use and development of the line for passenger carrying should be re-examined. The shared use by goods and passenger traffic of any improved facility will still be difficult but by that time the claims of passenger handling by rail msy not be so insignificant in relation to those of goods handling. Transport Administration in the Klang Valley 4&7. rresent transport planning, policy making and administration for the Klang Valley region are carried out by a number of agencies at different administrative and government levela. Road transport is the direct concern of the Economic Planning Unit (Epu), Ministry of Works, Power and Telecommunications (MOW), the Ministry of Communications (MOC) and its related regulatory body, the Road Transport Licensing Board (RTLB). Urban and inter-urban roads and related facilities in the region are also the concern of the Ministry of Research, Technology and Local Government and the Executive Council of Selangor State. 48. The EPU coordinates transport investment programs (see Annex 6). The MOW fully controls the Roads Division of the Federal PWD which plans and executes federal road projects. The MOC directs the Federal Road Transport Department (which administers motor vehicle registration and commercial licensing and provides staff support for the RLTB) and oversees the relatively independent operations of Malayan Railways, the Department of Civil Aviation and the Port Blang Authority. The Ministry of Research, Technology and Local Government has ultimate control over the administration of the Kuala Lumpur Municipality which haa its own traffic engineering and land use planning departments. The Executive Council of the State of Selangor exercises control over the State Pablic Works Department (which initiates some road projects), the State Development Corporation (which has complete development and administrative powers in designated areas), the administration of all towns in the state and the disposition of state lands throughout the state (see Annex 1). ANNEX 2 49. Following the recaomendations of the study Transport Investment in Malaysia; planning units were established in the MOW and MOC in order to assist in the development of a coordinated system of transport planning end policy making. However, the units have to date only achieved a very modest technical role as the result of staffing and other problems and in any case the unita alone were not seen as an effective means for coordinating the actions of the many agencies involved in urban transport planning and policy making. The EP iS effective in resolving major policy conflicts and project priority differences between agencies at the implementation stage but conmm guidelines for policy and project initiation are often lacking. 50. The Governat and many of its agencies are presently concerned about future urban transport development in the region and are in fall support of the examination of urban transport agency organizations and future facilities and user policies to be made during the course of the Blang Valley Study. The Government is also presently active in the examination of other aspects of the transport policy which may influence transport development in the region and in the urban areas throughout the country. In November 1970, "The Cabinet Comuittee on Comunications" was established at the highest Cabinet level under the Chairmanship of the Deputy Prime Minister to eomine, coordinate and control the implementation of transport and communications policies. The program of action includes (a) :eview of the road licensing policy, (b) restructurtng of road user charges, and (c) measures to encourage more participation of Malays in the road transport industry. The Government has started implementing proposals for amending the Road Traffic Ordinance aimed at reconstituting the Road Transport Licensing Board, under the chairmanship of the Minister of Transport, from a purely judiciary decision-making body to an economic and market oriented one. Other proposed measures are simplification and reform of the route and zonal licensing system and establishment of a national haulage corporation and a national container road haulage company. Also, with the assistance of two uNMO advisers, data collection systems and transport policy work programs are being initiated within the planning units of the MDW and MOC. 51. The separate actions of the several Federal and local agencies influencing urban transport do not comprise a comprehensive or entirely consistent program. The Government is rightfully concerned about future urban transport policy in the region and considerable emphasis will be given to urban transport agency organization as well as future facilities and user policies during the course of the flang Valley Study and the proposed project studies. April 5, 1972 ANNEY 2 Page 1 r TABLE I MALAYSIA KUALA LUMPUR URBAN TRANPORT PROJECT 1AJOR COMPONENTSOF LANG VALLE;TRANSPORT PATTERN, 1971 Kuala Kuala Petaling Lumpur Internal Internal Lunpur - Jaya - through Kuala Petaling Petaeng Kuala Petaling Jaya Area Jaya= Lumpur/ Jaya Vehicle Trips Car/Taxi 212,000 54U,Ooo 17,000 35,000 7,000 Mtorcycle 60,000 21,000 9,000 11U,000 2,000 10,000 1,000/ 1,000 1.,000 05 Light Truck ( 3,000 3,000 3,000 1,000 Heavy Truck ( 34,000 1000 2,000 29000 2,000 Total 316,000 80,000 32,000 $22000 12,000 Person-Trips - Total Car/Taxi 350,000 81,000 35,000 70,000 14,000 Motorcycle 75,000 27,000 12,000/ 1o00o/ 3,000 Bus 220,000 20,ooo4/ 25,000- 35,000- 600 Total 64528,000 0 72, _ 021000 00 23,000 Person Trips - Work Car/Taxi 100.000 26,000 l14,000 26,000 3,000 Motorcycle 35,000 10,000i 8,000 6,ooo/ 2,000 Bus 70,000 8,Z ao 3,000 Total 205,3000 42,000 30,000 8,000 1/ 1971 Kuala Lumpur traffic data estimated from 1964 transportation study data updated by 1971 vehicle ownersbip and bus passenger data and mission estimates; order of magnitude accuracy only. 2/ Hom end of trip Kuala Lumpur. 5/ Home end of trip Petaling Jaya. I/ Estimated from 1970 bus schedules and reported passenger volumes, order of magnitude accuracy only. 5/ Less than 500. Soumce: Federal Highway 2 Feasibility Study (Draft), Freeman Fox & Partners, September 1971; Kuala Lumpur Transportation Study, R. Crooks, Michell & Peacock, Tippetts-Abbett-MCarthey-Stratton, 1964. April 5, 1972 ANNEX 2 Page 16 TABLE 2 MALAYSIA KUALk. LIMUR URBAN TRASPORT PROJECT ROAD TR&UtI IN MAJOR CORRIDRS INh KUALA LUeUR Average Daily Traffic (Eccluding Motorcycles) 1971. Corridor: Road Amunt * Northwest: Rouatw21 .r. SentiL 47,000 39.8 Northeast. Rou t z 29,000 12.2 East S. J.. axnqr/ J. Auang 35,0O0 14.7 Southeast: Route 1 20,000 8.4 South: J_ Sumgoi Beni 17,000 7.1L Southwest: Federal. Highway/ IT Kang/ . ansaa. 90000 37.8 Total 100.0 Source: Mmicipality of Kuala Lumpur, Janmary 1972. April 5, 1972 ANCNEX 2 Page 19 TABLE 3 MALAYSIA KULALA LUNPUR URBAN TRANSPORT PROJECT MOTOR VEHICLE REGISTRATIONS - WEST' MALAYSIA Year Mbtorcycles Cars Taxis Trucks Buses Total 1960 49,056 92,217 44,252 28,922 2,722 117,169 1961 68,296 103,P149 4,337 31,083 2,908 209,773 1962 88,207 112,843 4,671 33,645 3,125 242,491 1963 112,086 124,651 5,036 35,637 3,332 280,742 1964 142,746 139,049 5,092 38,449 3,543 328,879 1965 175,842 154.,277 5,240 41,854 3,763 380,976 1966 214.,691 169,008 5,393 44,411 3,967 437,470 1967 251,529 182,447 5,558 46,502 4,234 490,270 1968 278,836 194,712 5,685 48,301 4,636 532,170 1969 312,686 213,247 5,9557 51,375 5,347 588,610 1970 350,049 231,539 6,715 55,823 5,932 650,058 Annual Average Growth Rates, % 2er annum: 1960-65 29.1 10.8 4.3 7.7 6.9 16.5 1965-70 214.8 8.5 5.1 6.0 9.5 11.3 Source: Road Transport Department, December 1971. April 5, 1972 ANNEX 2 Page 20 TABLE It MALAYSIA KUAL LUMMR URBAN TRNSORT PFDJECT MDTOR V1L3E REGISTRATIONS - SELAN5OR ST 21/ Year motorcycles Care Taxis Truks Buses Total 1960 13,171 27,785 776 9,119 649 51,500 1961 17,360 32,059 663 9,960 703 60x745 1962 23,033 35,989 774 11,058 755 71,609 1963 29,077 409449 B88 11,655 803 83,272 1964 35.,959 46,'2 920 12,72k 834 96,979 1965 43,305 52,504 997 14p234 890 111,930 1966 52,256 58,190 1,068 15,33k 984 127,832 1967 6i,640 63,796 1s099 16,432 1.,091 14 058 1968 69,340 69,732 1,110 17,368 1,201 158,751 1969 76,78k. .76,56 1,215 18,793 1,436 174,774 1970 86,506 82p,958 1,659 20,489 1,562 193,174 Ann&a1 Average Growth Rates-, % per annum: 1960-65 26.6 13.6 5.2 9.3 6.5 16.8 1965-70 14.8 9.6 10.7 7.6 11.9 11.5 1/ Ilang Valley Region registrations equal approximately 85% of Selangor State registrations by Road Transport Department Survey. Source: Road Transport Department, December 1971. April 5, 1972 MALAYSIA KUAIA LUfPUR URi9AN TRANSPORT PROJECT REVENUES FROM MOTOR VEHICLE T&IATICt (Ns WHIMogll 1967 1968 1969 1970 1971 West Malaysia Purchase Tax 24.6 16.9 19.8 40.9 39.3?/ Annual Registration 102.0 111.7 119.7 137.8 147.2 Other Road Fees 11.1 11.9 13.4 21.8 22.9 Subtotal 137.7 1140.5 152.9 200.5 209.4 Gasoline-/ 104.0 109.9 113.7 317.6 142.9/ W.esel Fuel 114.7~, 15. Y 16.52 18.0 20.03/ Total 256.4 265.8 283.1 336.1 372.3 flang Valey Region3/ 75 78 83 98 109 1/ Includes non-road use of gasoline. 2/ Treasurr estimate. 3/ Mission estimate, order of magnitude accuracy only. Source: Ministry of Counications, January 1972. Treasury, December 1971. \JlH A-pril 5, 1972 ANNEX 2 TABLE O NALAXSIA KUALA LUMPUR URBAN TRANSPORT PRJECT I1LANOVALLEr 1DAD Federal and State Roadsl/- 385 Municipal and Town Roads&/ Kuala Lunwpur I4nicipality 180 Petaling Jaya. Town 125 Shah Alam T25 ELang Town 40 other urban areas - Sub-Total 7 Total 5 1/ Includes short sections of federal and state roads within immicipal]. and town boaundazis not transferred to the local authority. 2/ EBccludes roads within private residential or industrial developments not transferred to the local authority. 3/ Not availableyestimated to be small in relation to Toad mileages accounted for. Source: Fedeal PWD, January 1972 Kuala Lu=pur Mmicipality, Petaling Jaya Town Board, Selangor State Development Corporation, Klang Town Board; November 1971. April 5, 1972 AiREX 2 Page 23 TABLE 7 MALAYSIA KUALA LIJMPUR UBBAW TRANPORT PsJBCT KLANG VALLi R)AD CPBENDITURES, 1966-1970, 1971-1975 1966-1970 1971-1975!e' Development Maintenance-/ Development Maintenance- Federal and State Roads 22.0 9.4 183.0 16.0 -1n cipal and Town Roads: IKuala LuImur Municipality 4.22/ 4.1 23.33/ 4.3 Petaling Jaya Town - 4/ 2.9 I 4/ 2.9 Shah Alan Town 4.0 .6 7.0 1.1 Klang Town 4/ - 4/ 1.0 Other urban areas _4i Sub-lotal 8.2 30.3 9.3 Total 30.2 17.9 213.3 25.3 _J' Estimated. 2/ Local authority maintenance expenditure estimated to equal federal road maintenance grant ~i M$4i,600/mile of road; actual expenditure may not equal the grant amount. 3/ Includes federal grant of MI 3.4 million during 1966-1970, M$ 6.6 million 1971-1975. 4/ N4ot available, estimated to be small in relation to total. Source: Federal PWD, January 1972 Kuala Lumpur Municipality, Petaling Jaya Town Board, Selangor State Development Corporation, Klang Town Board; NTovember 1971. Ppril 5, 1972 ANNIX 2 PaVge 24 TABLE 6 MALAYSIA KEALA- LUMUR URBAN TRANSPORT. PPOJCT Mk.JXR RAIL TRACKs INVSTMES; IN TL MUAN VALIE, 1966-1970 Investment Investment Wy cy Others, Malayan Public or Type of Tnprovement Railways Private Total Double trackcing of ia line, Port Klang Junction to Salak South Junction, (3 miles approximately) : 595,0 59s,000 Two Service Sidings, Port Klang Line 92,000 124, 000- 216,000 Three Private Sidings, Port ilang Line -- 12,000 112,000 Total 687, 000 923,000 1/ Selangor State Development Corporation. Source: Malayan R-aPlwass, December 1971. April 5, 1972 ANNEX 3 Page 1 MALAYSIA KUALA LUMPUR URBAN TRANSPORT PROJECT 1FLANSPORT CEARACTERISTICS IN THE CORRIDOR 1. In this annex, the consultant projections of travel demand in the corridor from Kuala Lumpur through Petaling Jaya are compared with figures from other selected cities and their method of relating these forecasts to road capacity of alternative improvements of the Federal Highway is explained. 2. The following cities were selected for comparison on the basis of population, per capita income level and data availability. Per Capita Population Data Base Income (In Millions Year city (In US$) of Persons) 1970 Kuala Lumpur 660 0.7 1990 Kuala Luwpur 1,1 1.3 1970 Caracas 1,600 2.1 1969 Singapore 800 2.1' 1970 Bangkok 524 3.5 1969 Bogota 450 2.5 1970 Istanbul 429 3.0 a/ Estimated A. Vehicle Ownership 3. Numbers of vehicles per 1,000 persons are compared in Table 1. Present ownership of private vehicles in Kuala Lumpur is similar to that in Singapore and Bangkok. In particular, a high popularity of motorcycles is conspicuous in these cities. Both Bogota and Istanbul automobile ownership figures are consistent with their lower economic level while the future projection of Kuala Lumpur automobile ownership approaches present levels in Caracas at slightly lower incomn level. Higher ownership rates of motorcycles than automobiles is a unique characteristic of Kuala Lumpur. B. Modal Split 4. The present modal split in the Kuala Lumpur-Petaling Jaya corridor is compared to other cities in Table 2. The modal split in Kuala Lumpur exhibits a comparatively high proportion of automobiles, a very high percentage of motorcycle traffic and relatively low reliance on public tranait. It must be taken into account that Kuala Lumpur figure is for a corridor outside the central city, with a low population density (a density ANNEX only about one-third the average in Singapore, for example)* Even with this reservation, a greater predominance of private vehicle travel is only found in Caracas where the present income level is much higher than that of Kuala Lumpur. 5. The composition of present traffic on the Federal Highway between Kuala Lumpur and Petaling Jaya has been compared with that on Route 1, the north-south arterial through Kuala Luwpur and is shown below: Federal Highway - 1970 Route 1 - 197i/ Southwestern Boundary Southern Boundary Northern Boundary of Kuala Lumpur of Kuala Lumpur of Kuala Lumpur Cars 63.0% 65.0% 6o.0% Motorcycles 23.5 14.5 18.2 Buses 2.0 3.5 2.8 Trucks 11.2 17.0 19.0 Though the composition is similar on each of the approaches to Kuala LAumpur, the Federal Highway has a particularly high proportion of motorcycles which appear to serve as a substitute to bus transport for a significant number of users. C. Future Travel Forecast 6. In the comparison of the consultants' projection of transport demand in the Kuala Lumpur-Petaling Jaya corridor with forecasts of other cities, the predominance of private vehicle travel is still notable (Table 3). The proportion of passengers traveling by bus is forecast to decline to about 18%, while that of motorcycles increases to about 20%. This suggests the need for encouragement of public transport in the Kuala Lumpur-Petaling Jaya corridor (and other parts of metropolitan Kuala Lumpur) to shift more transport demand towards mass transit as intended in proposed project financed studies (paras. 4h05-4.06). 7. The level of traffic forecast by the consultants in 1985 would be 2.2 times the present level in terms of the number of persons traveling. The study on Route 1 (north-south arterial through Kuala Lumpur) shows the 10 year growth factor of transport demand between 1970 and 1980 to be 2.8 (south of Kuala Lwnmur) and 2.0 (north of KRala Lumpur), and between 1970 and 1990, 4.9 and 3.2 respectively. The forecasts of both studies are generally consistent given roughly equal relative growth of tributary populations to respective roads. 1/ Malaysia Highway Feasibility Study, Route 1, Vallentine, Laurie & Davies, August 1971 ANNEt 3 Page 3 8. In order to make comparisons of travel growth in other selected cities, the absolute growth in teors of number of persons traveled is divided by population growth to obtain growth in travel per person. The growth factors in trips per perom for the 15 year period (1971-85) in these cities is shoui below: Kuala Lumpur- Petaling Jaya Singapore Caracas Bogota Total Private Vehicles 1.7 1.5 1.7 Cars 1.6 1.6 1.7 Motorcycles 2.0 1.7' Ptxblic Trasit 0.7 0.9 1.1 1.3 Total 1.3 1.1 1.1 1.4 9. The comparison indicates a clos- similarity in each component between the Kuala Lumpur-Petaling Jaya and Singapore forecasta. However, the ingapore growth factors are applied to a proset pattern with a much heavier depedence on public transport (particularly due to a reliance on "Jitney" taxis instead of motorcycles, Table 2) and the resulting transport patterns in the two cities are quire different. Caracas' forecast of per capita person travel is much lower, part of the reason being that it has already reached a level today which Kuala Lumpur will take 15 to 20 years to attain in terme of both per capita income and car ownership. The Bogota growth factors for total person travel and car person travel are similar to those forecast in Kuala Lumpur but greater use of public transit is reflected in the relative growth of travel by that mode. D. Results of Comparisons 10. The comparisons of present and future travel that are possible between cities are necessarily incomplete in breadth and depth of treatment. The conclusions that can be usefully drawn aret (a) The Kuala Lumpur-Petaling Jaya corridor has fairly distinctive characteristics of modal aplit, with a high level of private vehicle travel, especially by motorcycles, and, conversely, a relatively modest proportion of public transport travel. Page 4 (b) Although the ccnaultants' forecast of the transport demand in this corridor would indicate an accentuation of these characteriatics, their forecasts of each oomponent of transport demand.are not inconsi:stent with those determined in studies of several other roughly comparable urban are"a. (c) Taking-these characteristics into account, the following special provisions are considered appropriate and 'Justifiable for Inclusion in the proposed projects i) :provion of exclusive cycle lanes .pra. 4.04); ii) J.ncluaion of studies on public - transport end private vehicle us policies (paras. h4.05-4.o6); iii) inclusion of a sensitivity analysis of foecast travel (a 20% reduction -or vehicle traffic) primarily in anticipation of possible improvements in public transport (paras. 3.14, 5.03). i. 'Capacity Restraints on Forecast Demand 1. Consultant forecasts of "basic" peak and off-peak travel demand in 1975 and 1985 in the Duala lwmzur-Petaling Jaya corridor, based on the initial-assumption of travel conditions remaining as at present, were assigned to each of the alternative improvement schemes A through D and the "without" acheme (Annex 4). For each alternative the basic peak and off-peak demand was allowed to vary according to resulting road capacity and congestion conditions in relation to an assumed travel time elasticity. After separate revision of peak and off-peak travel demand based on travel time elasticity,each was reassigned,travel times recalculated, demand revised, etc., until a balance between road supply and demand at representative peak and off-peak travel cost levels were obtained. The resulting travel characteristics for each scheme are summarized in Annex 4. The extent of restraint in basic peak and off-peak travel demand is given in the following paragraphs. ANNM 3 Page 5 12. Scheme A (dual 3-lanes with at-grade intersections): About 25% of the 1975 basic peak demand and 10% of the off-peak demand would be restricted by capacity limitations. About 55% of 1985 basic peak demand and 140% of off-peak demand would be sappressed. Significant travel restraint would occur aoon after 1975 even if the level of basic demand increases more slowly as in the sensitivity analysis considered (20% reduction in the growth of travel demand up to 1985). 13. Scheme B (dual 2-lanes with all the intersections grade aeparated): No peak or off-peak reatraint of basic demand would occur in 1975, but in 1985, about 25% of basic peak and 5% of off-peak demand would be restrained by capacity limits. With the sensitivity analysis assumption of reduced traffic growth, peak hour restraint would be nearly eliminated. 14. Scheme C (dual 3-lanes plus grade separation): Although no significant restraint of basic peak hour demand would occur by 1985, conditions would be just at the point where demand restraint would begin to occur. Reduced growth of basic travel demand would extend this sufficiency condition to beyond 1985, possibly to 1990. 15. Scheme D (dual 4-lanes plus further substantial improvement): No restraint of basic demand would occur even in 1985 and conditions would not approach the point where restraint would begin. - 16. In Schemes C and D., the roadway sections and intersections toward the vest end of the project (opposite to Kuala Lumpur) showed more spare capacity than other sections. Upon further detailed analysis of Scheme C it was found that the improvements of three interaections (6, 7 and 8) to the western end of this project could be deferr6d tor about 5 years after initial construction. Therefore, these intersection improvements were excluded from the final scheme adopted (see para. 4.09 and Annex 4 paras. 5, 6). The effect of these deferrals would be to ahorten the time at which capacity restraint would occur on the implemented portiona of Scheme C. By the early 1980's significant capacity, restraint could occur at the grade level inter- sections 6, 7 and 8 with expected growth in demand, by about 1985 with reduced traffic growth. April 5, 1972 MALAYSIA KUAIA LUMIR lJDflA TRASPORT PRIJECT NUMBER OF VEHICLES PER 1,OOO PERS(IS IN SELECTED CITIES Commercial Tear Cty Pivate Car Motorcycle Tad Bus Vehicles 1971 KIMala Lumpuri/ 44.0 48.0 1.0 1.0 12.6 1970 Caracas 95.2 7.2 o.6 Y 1969 Singapore 40.5 30.5 2.7 1.0 9.5 1970 Bangkok 143.3 22.3 2.6 1.2 114.2 1969 Bogota 22.0 3.6 1.4 1s 1970 Istanbul 14.5 2.2 5.3 1.0 11.9 1990 Kuala Lumpur 8 Projected / 88.0 110.0 2.0 1992 Singapore 126.4 30.5 12.8 I/ Selangor State; separate KXala Lumpur data not available. 2/ Not available. Sources: a) Bogota - Transport and Urban Development Study, Phase I, Vol. III, Table 9.1 b) Bangkok Transportation Study, Office of Metropolitan Traffic Planning, pp. 87. c) Feasibility Study of Istanbul-Ismit Expressway, Sauti Consulting e Engineers, Tables 4-2-3-8 and 5-2-la. d) Singapore, The UN Urban Renewal and Development Project, Part Two, Surveys and Analyses, pp. 32; Part Three, Planning and Transport, pp. 36. e) Demand Estimation for the Caracas Metro, Summary Report, March 1970. f) Kuala Lumpur - Federal Highway 2 Feasibility Study (Draft), - Freeman, Fox & Partners, September 1971. April 5, 1972 MALAYSIA KUALA LUMPUR URBAN TRAI&PORT PPsOJEGT PRESE~ff NDDAL SPLIT IN SELETED CITIES (percent of total passengers) Bang!rok Istanbul Kuala Luupur- gMmorla Nain Approaches -lImit Transport Yide Pet g jr y CaracJas SinBore Bridge to Ontral Anixa t CorA 1970 1966 T - '---.w-- *Xt 1- 1 fi 196F Private car 46.9 45.6 26.6 22,1 29.0 16.7 - TaxiV 5.0 18.3 47.o -10 12.6 2 Sub-total 51.9 63.9 48.3 26.1 36.0 29.3 30.8 Hotorcycle 13.1 8.5 5,0 5.0 Bus 34.6 35.5 42.4 68.9 59.0 70.7 63.9 Commercial Vehicles - 0.6 0.8- - Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1/ Includes "jitney" or !pirate" taxis, 2/ Separate car and taxi data unavailable. Source: See Table 1. April 5, 1972 ALNEX 3 Page d TABLE 3 NALAYSIA KUAIA LUNPUR URBAN TRANSPORT PRIDJECT PiD=CT)D YDDAL SPLIT IN 51LECTED CITIES (percent of total passengers) Kuala Luwpur- Transport Mode Petng Ja Caracas Singpore Bogota 1965 1990- 1992199 Private car 57.h 45-50 33.6 19.2 Taxi' 5.0 -_ 25.1 13.7 Sub-total 62.4 2 58.7 32.9 Motorcycle 20.1 - 5.3 - Bus 17.5 45-50 36.0 67.1 Comarcial vehicle. - - - Total 100.0 100 100.0 100.0 l/ Includes "jitney" or "pirate" taxis. 2/ Balances of person travel not by private car carried by public transport consisting of buses and taxis, separate proportions unavailable. Source: See Table 1. April 5, 1972 ANNEX 4 Page 1 MAMYSTA KUA LUMR URBAN TR&NSPORT PROJECT ALTERNTIVE I POVRMT SCEEME FOR THE FEDERAL H1iOWAT A. Feasibility StudZ of Alternatives 1. The present highway subject to improvemnt is a dual 2-Jano, ldted ac ceas road. In the 5.7 mile project section from Jalan Brick- fields to Jalan Klang (South), there are nine edisting intersections at grade. 2. The feasibility study of the inprovement of the Federal Highway was carried out by Freeman, Fox & Partnorc fron March to September 1971. In the procesa of determining the mont appropriate scheme of improvement, the consultants examined four alternative schenes In detail. The four alternatives considered were: Schem A - a dul 3-lane roadway with nine widened intersections At grade, (US$8 million).21 Schem B - a dual 2-lane roadway with each of eight remaining intersections grade separated (two existing inter- sections being cibined into cne new intersection), (US$17 million). Schme C - a dual 3-lane roadway with dual 12 ft. cycle lanes between intersections Noe. 3 and 8 (Map 3) with each of eight remaining intersection. grade separated, (US$26 million).: Scheme D - a dual 4-lane roadway with grade separated intersections except between intersections 3 and 8 (see Map 3) where it would combine a dual 2-lane through traffic viaduct with a dual 3-lane grade level roadway for local traffic, (US$35 million). g/ Cost of construction, services relocation, design and supervision in- cluding 10% contingencies plus coats cf land acquisition. Cost con- tingencies incorporated in project coeta (para. hI.13) are 30% for construction cost and 10% for other project works conponents. AINNEX h Page 2 For purposes of benefit co*putati4n, a Owith6utu situation was also specified. The "without* dit'i&tiob, defined is not a "do nothing" alter- native, but one which repreaenta inimiJ. necessary imtprovemnt of road consditent with restricted travel grdtth. The "without" scheme consists of the existing road with widening of several at-grade intorsections in 1973/74 and widening Of the ro84vsy to dual 3 lanes in 1979/80 (as Scheme A), total cost US$8.3 *illioft.jy 3. Consultant forecasts Of tratel demand for 1975 and 1985 based on the initial assumption of future travel conditions aS at present were assigned to each of the schemes and were allowed to vary in relation to the resulting road capacity and congestion conditions (see Annex 3). The eventual equili- brium achieved between de.and and road supply and the resulting travel characteristics for each scheme are summarized below: 1975 1985. "Without" very, Significant capaditS restraint (Ifcproved to Scheme A Scheme on forecast peak trtffic, sres standards by 1980) capacity rest.int oil off-peak traffic (critical capacity at both intersectionS and on roadway sec- tions), long delays and lov speeds for remaining traffic Scheme A significant cap$city restraint on oxtrke capacity restraint forecast peak traffic (likiting on forecast peak and off-peak capacity at intersections), long travel (limiting capacity delays and low speeds for remaining at intersections), extreme traffic delays and low speeds for remaining traffic Scheme B adequate capacity for forecast significant capacity restraint traffic, delays and speeds rela- on forecast peak traffic tively unaffected by congestion (limiting capacity on roadway sections), moderate delays and reduced speeds for remaining traffic Scheme C adequate capacity for forecast minor capacity restraint on traffic, delays and speeds rela- forecast peak traffic (limiting tively unaffected by congestion capacity on roadway sections), delays and speeds relatively unaffected by congestion Scheme D adequate capacity for forecast adequate capacity for forecast traffic, delays and speeds rela- traffic, delays and speeds rela- tively unaffected by congestion tively unaffected by congestion 1:/ Cost of construction, services relocation, design and supervision including 10% contingencies plus costs of land acquisition. Cost contingencies incor- porated in project costs (para. 4.13 ) are 30* for construction cost and 10% for other project works components. ANNEX 4 Page 3 4. Benefits of increased travel and reduced travel costs were quantified on the basis of detailed analyses of the differences in travel characteristics of each of the schemes as compared against the %i'wthuut" scheme (Annex 7). The differences in the econcmic costs of investment were then snt against the net benefits of alternative improve- ment schemes in internal economic return (IER) calculations. The IER of Schewe B was marginanly higher than Scheme C, but the additional benef6ts attribixtabe to Scheme C brought a mare than adequate return on the additional I=tve3tlent required and the scheme also provided signi- Clcant non-qnantifiable advsntages. For These reasons, Scheme C, with minor modifications, was recamuended by the consultants at tvhe conclusion n,f their feasibility studies.!/ The alterations to Scheme C in the recom- r.ended scheme were8 (a) incorporation of cycle lanes ever the entire project length; (b) simplification of the design of intersection No. 4. The cost of the recomend�d modified Scheme C was the same as the original Schome C, US$26 million.t/ P. Schece C - Second Revision and Phasing 5. Further rei-vton= were made in mndified Scheme ;0 to adapt it more closely to the short term traffic needs while leaving soue flexibility for futuire expansIn. These modifications consisted of (a) siuDlification of interchanges 2 and 5, and (b) postponement of the construction of grade snppareted iuterchangen 6, 7 and 8. 6. Thoe revised first stage Scheme C waa eatimated to cost US$ 17.0 millJon.1/y The addition of he three interchanges at a later date would coct another US$ 2.? mnillion.21 !' The estimated staging period would be five years and could be longer if new transport policies were particularly effective in reducing traffic growth. 1/ rederal High^way 2 Feasibility Study (Draft), Freeman, Fox & Partners, September 1971. 2/ Cost of construct�an, cervices relocation, design and supervision including 10% contingencies plus costs of land acquisition. Cost con- tingencies incorporated ia pro.ject costs (paLr. l .12) are 30% for construction co3t .and 10% for other proJect works coiponents. ~/ This cost estiir.-es was based on prelimiinary engineering on a comparable basis to the alternative schemes discussed here. Flowever, the detailed engineering led to revised cost estimates of US$ 29 million (para. 4.ll) which camnot. be comi.,4ed to the alternative schemea without an adjustment factor which would require detailed engineering of the alternatives. 4V Technical redesign of interchanges 6 and 7 has reduced their total cost by 'US$ 03.9 mil116o. as compared with the costs based on preliminary engineering in the ccnsultanto' z'easioility report. :x as 7. Scheme 1 was also exai*hed ih detail f r poesible t6difidations which could adapt it toz*e closely 6' short tttrm needs. The original Sche*e B was altejtd by' the dele6�ot of, itersection No. 8, t4chnical redesglgn of interchaftges o and 7 and addition of dual 12-foot cycle lanes over its entire 1 ngth. The cost of th6 revised :chs&4 was atprocimately US$134.14 millidn.2/ It was niot donsidered feasible to eliminate inter- changes 6 and 7 as in first stage Sch ibe C because the dap&city of grade level intersections coupAtible with the dual 2-lane Schede b roadway would be reached in a very short tiA6 interval. 8. The revisions and Vodifidatioih of Sdheae C and 8 have altered the bases of dothpatison between the driginal scheoes d6t out in the con- sultants f6aBibilUty-study including quantified a?d don'.quantified project returns. In both respects, the f�lrst stage Scheme C is shown to increase its relati#6 advantages over other altAthatives. The quantified returns expressed in.revisod r-ites of return inheopdrating altered benefits and costs based on revisiona Of Scheies C and B are6 duarized Tih paeabb. 5.02-5.o3. The non-quantified returns of the fiUst stage Scheme C over other alternatives including ihdified Scheme B are summariied in paras. 5.08-5.1O. C . Dqscription of. $d Penat4ed_I4terOeetiois - 9. the firtt stage Sche C incot4orates a dual 34ian roadway with .'ive grade sparated intersietioms and thfee at-grade intersections. Daal 12-foot cycl lanes-*ould be indibrpoated in the section where the �oadway is provided Uith grade separated intersictions. A suplementary lane in each direction would be provided betweeh intersections 3 and 5 (Map 3). 10, The design of the five grade deparated intersectionis is as follows: Ihtersection No. 12 Jalan _ickf14ildS The Ftderal Hinhwat' it- daried over a side road which west of the Federal Highway' crosses the Llang Riv-er on a new bridge on the site of the existing trfiss bridib and e8at of the Federil Highway connects with an access r6ad 6b1+in properties bn the sodth sidoe of the Federal Highwa?. The Federal Highway ctbs5es abode the side road because the level of the biidgt crobsing the ri*er dSteruines the level of the side trad. Despite the fact that sdi" property de*olition east of the Federal Highway is necessazry and that the terrain north of the bridge crossing is undulating, a required access road is incorporated. 1/ Cost of construction, services zSlodatidh, design and supervision including 10% contingencies plmxs costS of lihd acquisition. Cost contingencies incor- porated in project costs (pOra. 4.13) are 30% for construction cost and 10% for other project works coniponents. ANNEX 4 Page5 Two curred ramps between the southbound carriageway of the Federal Highway and the access road and two straight ramps of diamond form on the west side of the Federal Highway cater for turning movements between the two roads. Traffic lights are provided on the access road to control right-turning movements. Intersection No. 2 - Jalan Klang The Federal Highway is carried through a wide right angle curve to connect with Jalan Lornie. The extensions of Jalan Lornie to Jalan Klang and the Federal Higkway to the CAter Southern Route are carried on two bridges over the curved section Federal Highway to a right angle junction. The Federal Highway - Outer Southern Route extension is bridged over the Jalan Lornie - Jalan Slang extension and connecting ramps are situated in a diamond pattern. Traffic lights are provided to control vehicle movements between the access rampe and the side road, Jalan Klang. Intersection No. 3 - Jalan Pantai Bahru This interchange is a diamond, the Federal Highway running at low level beneath the side road. Traffic lights are provided on the side road to control right-turning movements to and from the access ramps. North of the Federal Highway, Jalan Pantai Bahru turns through a right angle on a new, improved alignment in order to connect farther east with Jalan Bungsar. The present connection of Jalan Bungsar and the Federal Highway in between Intersections Nos. 2 and 3 will be closed. South of the Federal Highway, the side road is planned to connect with a proposed road which will serve new development. Only a short spur, a few hundred yards long, of the side road south of the Federal Highway would be built initially. Intersection No. 4 - Jalan University/Jalan Gaging This is a half diamond interchange, ramps being provided only on the east side of the crossing to cater for the major movements (to and from Kuala Lumpur). Flows to and from the west are catered for at the next interchange to the west. The Federal Highway runs at low level, a single bridge carrying the side road above it. Traffic lights are provided to control the right turns between the side road and the access ramps. ANNEX h Page 6 Intersection No. 5 - Jalan Timor/Jalan Utara This is a diamond interchange catering for all movements. The side road ia carried on a bridge above the Federal Highway. Traffic lights are provided to control right-turn movements between the ramps and-the side road. A4ril 5, 1972 ANN_ 5 Page 1 MALAYSIA KUALA LIPR URBAN TRANSPCRT PROJECT MAINTENANCE STUDY AND ROUTE 1 ENGINE:RING 1. At the request of the Malaysian Gove=wmt, the project includes a study of roa4 maintenance operations and detailed engineering for Route 1 (aee para. 4.06). 2. The principal objectives of the study of road maintenance operations are to: (i) recommend desirable aystem of route numbering and road mileage marking on which the preparation of a road inventory would be based; (ii) prepare a comprehensive inventory of the rosda listed in the registers of the Federal and State Public Works Departments (FWD), and to recommend a desirable road classification system; (iii) recomuend procedures for the continued updating of the inventory so prepared; (iv) study the organizations of the Federal and State agencies responsible for road maintenance, and to recommend, within the framework of the Constitution, the desirable structures of such agencies, giving special emphasis to coordinating responsibilities for planning and execution of maintenance operations presently divided between the Federal and 3tat. agencies; (v) assess the type, condition and age of the road maintenance equipment at present in operation, and to recommend a desirable inventory of equipment to maintain the highway network; to recommend a replace- ment and acquisition program to achieve this desirable inventory; (vi) recommend how such equipment replacement and acquisition should be financed (e.g. hire charges, sinking fund, etc.); (vii) recommend a simple accounting procedure for the costing of road maintenance operations; and (viii) investigate the need for and to recommend mitable training programs for road supervisors, technicians and equipment operators. ANNEX page 2 The study's findings as agreed betwee the Government and the Bank would be implamnted at earliest chances in future. 3. At the Govermentla request this project would provide detailed engineering for now conatruction and improvement of about 137 miles of Federal Route 1 for which consultants completed feasibility studies. Detailed engineering commenced in February 1972, and approximately 25% will be completed by the time of loan signing. Retroactive financing of the detailed engineering in a second highway project would involve an inordinately long finance period, and it is therefore recommnded that financing for detailed engineering of Route 1 be included in the present project, of which a portion not exceeding US$ 400,000 would be for retroactive financing. April 5, 1972 ANNEX 6 page MALAYSIA KUALA LUMPUR URBAN TRANSPORT PROJECT THS HIGHWAY S2CTOR A. The Highwa Network 1. Federal and State Public Works Departmens(PWD's) are responsible for 10,719 miles of roads in West Malaysia of which a highproportion 83%, are paved East Malaysia has a total of 2,238 miles of which only h07 miles are paved. Roads are classified for administrative purposes as federal, state, and local authority roads. About 3,000 miles are federal and 7,000 state. Federal roads are main trunk roads linking one state to another or linking ports to the federal network, but there is no firm definition. Details of tyoes and mileage of Malaysian roads are presented in Table 1. 2. Road development is concentrated on the west coast of West Malaysia reflecting the area's high proportion, 70%, of national population (see Map 1). East Malaysia and the east coast of West M4alaysia have much less well developed road networks. The road network in West Malaysia has expanded from 6,500 to 10,719 miles or by 65% in the 16 years up to 1970. 3. The road network of the more populous west coast regions of West Malaysia is regarded as adequate for present needs although some upgrading and relocation of existing roads are needed to accommodate traffic growth. The UNDP-funded study "Transport Development in Malaysia" ecmpleted in 1969 by Robert R. Nathan Associates, Inc. (U.S. consultants) came to the same conclusion. During the period of the study the Government limited investments in the sector, but after its completion the level of commitments increased substantially. Federal investment in roads and bridges in West Malaysia for the Second Malaysia Flan period (1971-1975) is programmed at a level more than three times that of the previous five years. Details of investment in road construction and improvement appear in Table 2. It. Apart from one 15 mile section of toll road on the main route north of Kuala Lumpur (an alternative route, 12.5 miles longer is available), the use of public roads is normally not restricted. Vehicle weights, dimensions, and loads are controlled by the Ministry of Communications (MOC) in accordance with 1958 Traffic Ordinances. The axle load limit is 8 long tons and gross weight is limited to 14 long tons for 2 axles and 18 long tons for 3 axles. Trailers and semi-trailers are permitted, and maximum.. total length is normally 30 feet. Vehicle width is limited to 7 feet 6 inches unless a special permit is granted. As container traffic requiring 8 foot width is imminent, the Government should consider revising this requirement. ANNEX 6 Page 2 5. Eaforcement of vehicle loading is also the responsibility of the MOC, but the enforcement staff is small (only 20 people). Only 5 weigh bridges are available for the entire country, and these are located away from the main roads. Overloading is frequent especially in timber transport. B. Highw Administration 6. Re.poftsibilit47 for h�gYa y administration is divided between the Ministry of Communications (MOO) and the Ministry of Wrks and Power (MOW). The MOC is responsible for licensing, registration, and regulation. The MOW is responsible for construction and maintenance of federal roads and for allocation of maintenance funds for state roads. The Federal P1D ia reaponsible to the MOW for these activities. Each of the 11 state PWD's in Nbst Malaysia is autonomous but administers all federal road construction and maintenance work outside Kuala Lumpur on an agency basis. Separate PWD'. in Sabah and Sarawak administer roads in East Malaysia. 7. The Federal PWD is organized under a Director General anrd two deputy directors general fot development and engineering services (see Chart l).The Deputy Director General for Development controls five operating divisions (Roads, Armed Forces Works, Building, 'water Supply, and Education Works), and the Deputy Director General for Engineering Services has four supporting divisions (M4echanical, Quantity Surveying, Electrical, and Stores). A Design and Research Division and an Accountinrg Division report directly to the Director General. 8. The Roads Diviuion of the Federal PWD is administered by a director and has five sections: Implementation, Design, Planning, ProJect Coordination, and Federal Land Development Projects. The Implementation Section is responsible for road improvements, minor road projects, maintenance of all federal roads, road inventory, one quarry and a few other minor roads. 9. The Design Section is responsible for design of roadways but not structures. Structures are designed by the Design and Research Division which reports directly to the Director General. The Planning Section (Highway Planning Unit) will be discussed below. The Project Coordination and Federal Land Development Authorities sections deal with larger projects to which engineers and other technical staff are seconded. 10. Although, because of individual cooperation, the organization appears to function satisfactorily, responsibilities are divided. The Design Section can engineer roads but not bridges, the materials laboratory is remote from the Roads Department, potentially.its largest customer and control over road construction and maintenance equipment is maintained by the Mechanical Department. ANNEX 6 Page 3 11. State Pablic Works Departments are organized in a similar manner as the Federal PWID but with less specialization. A single engineer may deal with water supply, electricity, buildings, and maintenance as well as roada. Technical staff of the State PWD's are paid by the State but are provided on rotating assignments by the Federal PWD. Directors of the State PWD's hold ambiguous positions of dual responsibility to the Federal PWD and to their respective States, where the State WIorks Committees and State Legislatures approve their budget. The FederalF PWD uses the State PWFD's as executing agents for construction and maintenance of federal roads outside of Kuala Lumpur. 12. the Roads Division of the Federal FWD has had until recently a shortage of staf Y. Of 68 authorized positiona for engineers and technicians, 44 were vacant but have now been fIlled. This probleu arose in part from the difficulty of retaining engineers with government salaries w.iFch were generally lower than thoae of the private sector and in part from alleged preferential treatment given to Malays at the expense of other ethnic groure. The Governmcnt hired a vmuber of expatriate engineers on three-year contracts, all as technical assistance on a bilateral basis. A new law is in preparation requiring local engineers to undertake two-year assignments with the Goverment after graduation. C. Highway Plarning and Finance 13. Responsibility for highway planning is divided among the Ministry of Communications, the PID, and the Economic Planning Unit. The Transport Planning Unit in the Ministry of Communications is thinly staffed with 6 relatively new people, but they are receiving advisory support from a Bank staff member on two year secondment to the unit. The Transoort Planning Uhit has not been a significant force in highway planning, but sone improvement is possible in the next two years. 14. The Highway Planning Unit in the Roads Division of the Federal PID was established in 1966 to provide counterpart staff for the Transport Development in Malaysia study. it continues to function and is assisted by a UJNDP-sponsored advisor, but it is not a fully effective instrument of national highway planning. The Highway Planning Unit will shortly be moved outside of the PUD vrto a higher advisory level within the Ministry of Works and Power. With the proper suport, it could be a more sipi�icant force in the future. 15. The Economic Planning Unit of the Prime Minister's Office has assumed some of the responsibilituy for highway planning, but the demands on limited staff preclude any thorough highway p'lanning effort beyond broad budgeting considerations. ANJErX 6 Page h1 16. No special institutional arrangements have been made for urban highway planning or for highway planning in metropolitan Ku,l;I Lumpur. The Project Coordination Section of the Roads Division (Federal P1D) has implemented a number of road proJects in Ku.ala Lumpur, but its focus is short rather than long range. 17. Highways are financed from general revenues, and there are no earmarked taxes for use on highway construction or maintenance. Budgets are prepared arnually within the framework of the Second Malaysia Plan. The federal highway budget is prepared by the Director of Roads for the Director General of the PWD. It is reviewed and approved by the Economic Planning Unit on behalf of the National Development Planning Council. State highway budgets are prepared by the Directors of the State PWD's and they are subject to approval by the respective State Works Committees and State Legislatures. 18. 'The Second Malaysia Plia (1971-1975) allocates M$ 693.5 million (US$ 248 nillioh) or 9.6% of the nlatiohal budget to highway and,bridge con- struction and improvements and tost Of this amount will be Spent in West Malaysia. The entire transport sector will receive M$ 1,188 million (US$ 424 millior.) or 16.L% of the budget tot the five year period. Domestic and foreign borrowing will auplement general revenues as a source of funds for this program. "i9. gghway.,#giA6eering 19. Dbsigh statahidsd for f6detal roads have recently been revised and brought up to dates and are gtnerally satisfactory. However, design is baded oh thd legal t&tiuh= loading of 8 long tons on a single axle. Because of the overloading of vehicles still prevailing and the tendency to inerease the tr'ack loading capacity, the proposed maintenance study should eon*ider the advisability of increasing the axle load one unit from 8 to 10 long toi* in its review of vehicle weights and dimensions (see Annex 5). 20. Shortages of staff have led recently to the use of local consulting firms for feasibility studies and design of smaller projects. Foreign consulting engineers have been engaged for larger ,obs and a few are currently operating in the country. 21. The Federal and State PWD's Own and operate 7 large quarries (1 federal, 6 state)from which most of the road network can be served within a maximum haulage distance of 100 miles. In the absehce of natural gravel, crushed stone is used for base and as chipping for the asphalt carpet. Because of the high percentage of paved roads, large quantit,ies of chips are needed for the annual resurfacing and resheeting. Each quarry has a capacity of about 1,000 cubic yards of crushed stone per da,y. They are properly equipped with modern equipment and are well run. Cost accounting methoda are generally adequate, but sometimes does not include depreciation of plant. ANNE 6 Page 5 E. Highway Construction 22. The Roads Division of the Federal PWD is responsible for the construction of all federal roads. It assumes direct responsibility for executing federal road projects within Kuala Lumpur and for some other particularly important projects as the department's implementation capacity permits. Construction of other federal roads is done by the State PD's. About 90% of all roadworks excluding structures are done by force account using the Federal and State PD's own equipment and permanent work force. The Federal and State PWD's have about 1,600 pieces of heavy construction equipment and a tenured labor force of about 40,000 full-time workers; about 1% of the national work force. With these resources the total departmental capacity for road construction is about M$ 100 million a year (US$ 35.7 mdllion). Although the utilization of the Federal and State ND's permanent labor force, its equipment and experience are strong reasons for continuation of force-account work, the Government recognizes the need to foster a road construction industry to carry out an increasing volume of new conatruction and to eventually be capable of competing for international contracts. 23. Competent local contractors build about 95% of all concrete structure work, and local earth moving firms are being encouraged to ecuip themselves better for compaction operations. The Bank's Second Fighway Project should provide opportunities for this new industry to be awarded contracts of a size suited to their financing and capabilities. About 40 local contractors are prequalified for highway structures and about 10 for minor roadworks. F. Highway Maintenance 2h. Federeal roads are maintained by the State PWD's using funds provided by the Federal Government. Actual work is carried out by 49 district offices within the State PWD's, and the total road maintenance la-bor force is about 7,500. There is no special maintenance division within the Federal PTD, and maintenance issues are handled by the Imple- mentation Section along with its many other activities. Similarly the Sta.ate P.D's have no special maintenance units, and the work of each engineer is a mix of different tasks determined largely by current workload Pnd immediate needs. 251. Funds for maintenance of state roads come from the Federal Government and are allocated among the States according to an arbitrary and inflexible mileage basis, regardless of actual maintenance costs. According to constitutional provisions, the National Finance Council deterinines the rate at which such funds are allocated. In 1970 this r:n.te was raised to M$ hl,600 (US$ 1,640) per mile from M$ &,500 (US$ 1,600) per mile which has been in effect for over 10 years. These funds are chonrv-lled through the Federal PWD, but it has little direct influence on itetU:Il use of the money. Control of the funds is limited to auditors of tht respective Stctes. ANtJEX 6 Page 26. Funds for maintenance of federal roads are budgeted separately and are not subject to control by the National Finance Council. As such they can be changed more easily, and the current level of expenditure is M$ 5,f600 (US$ 2,000) per mile of federal road. These funds are transferred td the State PWD's which perform. road maintenance for the Federal PWD. 27. Costing of road maintenance operations is not recorded. Records of total expenditures by State are maintained, but not in detail. Thus, there is no firm basis to substantiate budgetary requests for maintenance allocations. 28. The central repair shop in Kuali Lumpur has am annual turnover of about M$ 8 million (US$ 9.9 million) and 600 menx on its payroll. It is capable of complete overhaul of 120 pieces of heavy equipment and 200 rehicles a year. Cost accounting of the central shop (and of most State shops) is based upon direct costs of each job with overhead allocated among jobs at 60% of direct labor. No attempt is made to include depreciation of plant and equipment in maintenance costs. 29. There is no firm programming of road maintenance by the State -P''s. Repairs are done when 7isual inspection shows that it is necessary, and resurfacing is done whemthe cracking begins (every 4 or 5 years depending upon traffic). Maintenance of shoulders and ditches is often neglected, and on some stretches there is no drainage provision. In general, maintenance has kept the road surface in satisfactory condition, but maintenance does not appear commensurate with the level of expenditures. A road inventory which should be the basis for effective road maintenance planning was first taken in 1S67 as part of the Transport Development for Malaysia study. 30. In order to identify accurately the deficiencies outlined above in the ei4sting organization for road aaintenance, and to recommend improvementa3 the oervices of a maintenance study by consultants is included in the prcj.ct. Dfltails of the study objectives are outlined in Annex ,. he atudy's f.ndings as agreed between the Government and the Bank would be implmeented at earliest chances in future. G. EcuiDment Maintenance 31. Equipment for both ccnstruction and road maintenance is maintained by the Mechanical Division of the Federal ?4D at the central workshop in Kuala Lumpur (complets overhaul), by the repair shops of each of the State .,'Ds (replacement, of major assemblies and some overhaul), and by 40 district shops (routine maintenance). The repair shops, especially the central shorp in Kuala Lumpur, are well organized, properly laid out, and well stocked with tools and equipment. April 5, 1972 ANNEx 6 Page 7 MALAYSIA KUALA LUMPUR URBAN TRANSPORT PROJECT MALAYSIAN ROAD SYSTEM 1970 (length in miales) Subtotal Subtotal Local West East Federal State Authority Malaysia Sabah Sarawak Malaysia Total Concrete surface 6 - - 6 Bituminous surface 2,636 4,490 622 7,748 - - _ _ Surface dressing 204 1,049 - 1,253 - _ _ _ Total pa.ved 2,846 5,539 622 9,007 131 276 4C7 9,4i Waterbound macadam (gravel) b 131 - 135 - - - 135 Laterite surface 178 981 - 1,159 536 759 1,295 2,!Z5L Earth roads 62 356 - 918 !, 12 536 0CJ Grend Total 3,090 7,007 622 10,719 711 1,527 2,235 12,c57 Source: Federal FWfD, January 1972. April 5, 1972 ANNEX 6 TABLE 2 MALAYSIA KUALA LUMPUR URBAN TRANSPORT PROJECT ROAD CONSTRUCTION AND IMPROVEMENT IN WEST MALAYSIA, 1966-75 (M$ 0003,000) Federal State Municipal Total First Malaysia Plan (1966-70) 70.0 48.3 5.7 123.0 Second Malaysia Plan (1971-75) 600.o 27.7 11.6 638.3 Source: Federal P'.D, January 1972 Note: First Malaysia Plan figures are actual. Second malaysia Plan figures are those budgeted and planned, but the Govermment may have difficulty spending the full Federal allocation during the plan period. State and Municipal figures are for Federal grants. In some cases these grants are supplemented by locsi funds. April 5, 1972 Page 1 MLL&YSIA KUALA LlPUR BII TRANFSPORT ROJECT C0NONMC A,M&IS A. Benefit ComPutation for Alternative Improvements Initroduction 1. *The benefit quantified for each alternative road improvemnt scheme is a measure of the change in consumers' surplus between it and an unimproved or minimally improved road. In each case, consumers' surplus is altered as a reault of both "coat reducing" and 'toutpult increasing" effects of the imProvement which together allow a larger nunber of road users to travel at lesser personal and real reaource costs than would the unimproved or minimally improved facility. Cost reduction benefits conist of net gains in casumrs' surplus of road users common to both schemes compared and are computed at a rate equal to the full difference in travel cost8 between the two. Benefits from increased travel consist of (a) net gains in consumers' gorplus of users choosing to travel in only one of the alternatives compard (computed according to the accepted convention at the rate of one-half the difference in travel costs between the two alternatives) and (b) net gains in consumers' surplus of non-users resulting from the voluntary release of resource claims in the form of increased tax payaents made by users choosing to travel in only one of the alternatives compared (computed as equal to the net increase in tax revenues resulting from increased travel). The rates required to convert changes in travel patterns between schemes into these benefit categories are: (a) unit costs of vehicle operation, (b) personal travel ti-me valuation rates and (c) motor taxation rates. Unit Costs of Vehicle Operation 2. Vehicle operating costs are considered to consist of three components: (1) running costs, (2) depreciation and interest, and (3) direct labor costs (of hired drivers and crew). Running cost rates are based on an adaption to Kuala Iumur conditions of unit costs of vehicle operation in urban areas at various average rates of speed observed in the U.K. The approach adopted was to assess typical costs for each vehicle type operating at its normal average urban operating speed (20 m.p.h. for buses and heavy trucks, 25 m.p.h. for all other vehicles) and to consider that these costs would vary with changes in average rates of speed as observed in urban areas in Britain by the Road Fesearch Laboratory. j The resulting running cost rates, net of taxes, for various vehicle types at different average operating speeds is shown in Table 1. They are acceptable. &./ "The Economic Assessment of Road Improvement Schemes", Road Research Technical Paper No. 75, Road Research Laboratory, Ministry of Transport, London, HMO., 1968. ANNEX 7 Page 2 3. Depreciation and interest costs of comnercial vehicle operation have been used to estimate the benefits of extended vehicle life and greater vehicle utilization made possible by reduced distance and time of travel. Cnly a small proportion of total depreciation and interest costs of commercial vehicles were estimated to affect such benefits and the resulting distance and time dependent rates for depreciation and the time dependent rate for interest are conservative (Table 2).?/ 4. Labor costs of drivers and crew of commercial vehicles were derived from official and commercial sources. It is assumed that time savings of drivers and crew can be productively utilized and therefore full hourly wage costs are used (Table 3). Real income levels are assumed to remain constant through 1975 and then increase at a rate of 3% per annum. These labor cost rates are considered reasonable. Personal Travel Time 5. The rates of personal travel time val-uation are based on proportions of average wage rates observed in the U.K. / applied to average wage rates for occupanta of rarious types of vehicles in KuaJla Lmpur (drivers and crew of commercial vehicles excluded as these are assessed as operating cost' elements, para. 4). The resulting valuation of personal travel time is consistent with conservative current practice in other countries. Travel- time savings during non-working time are assumed to be valued at 25% of the-- wage rate of the principal wage earner of a household. This value applies to travel time of all adult members of a household; that of children is valued at one-third of this rate. Travel time savings during working time are valued at the full average wage rate of the worker. Different rates for occupants of cars, taxis, motorcycles and buses are used to reflect the different wage levels of these different user groups (Table 4). Each rate is assumed to remain constant through 1975 and then to increase relative to an increase in real incoe levels of 3% per annum thereafter. These rates of personal travel time value are considered reasonable. Motor Taxation Rates 6. Increased tax yields from greater expenditure on fuel, oil, tires, maintenance, etc., have been used to estimate the net gain in non-users consumers' surplus resulting from increased travel. Instead of a simple offsetting transfer payment, a net gain in consumers' surplus is considered to occur because users choosing increased travel over alternative expenditures with 2/ The assumed proportions of depreciation and interest costs which contribute to measurable benefits are less than those outlined in "Quantification of Road User Savings", Jan De Weille, World Bank Staff Occasional Papers No. 2, IBRD, 1966. 3/ "The Value of Time Savings9in Transport Investment Appraisal", EDD Technical Note No. 3 (unpublished), Ministry of Transport, 1970. AN1NEX 7 Page 3 lGsser tax costs are assumed to act rationally and by so doing maintain or increase their own consumers' surplus while releasing resource claims in the form of greater tax payments which will increase the consumers' surplus of non-user beneficiaries qf public disbursementsJV In analyses where increases in the volume of travel attributable to road improvements are small and taxes on road users are low, this benefit element can generally be ignored. In this case, however, the increases i3 travel volumes and the level of road taxes are relatively high and benefits of this type, though. small, are hignificapt. The increased motor tax yields are compute4 by means of operating cost rates inclusive of tax derived from the addition of current rates of taxation to the vehicle operating costs exclusive of tax (Table 1). These gross tax yield increases from transport are converted to net increases by allowance for reduced tax yielda from decreased expenditures on other goods and services which include tax. A factor of 0.8 is applied to motor tax receipts to estimate net tax receipts. The applied rates of valuation are acceptable. B. Cost Computation for '"Without" Scheme 7. In addition to the economic costs of construction estimated for the alternative improvement schemes, certain construction costs for the "without" scheme representing the minimal necessary improvement of the Federal Highway were estimated and �nclwded iz the return computations as deductions to the cost streams of each alternative. The construction costs for the "without" scheme, including a 10% coat contingency allowance (as compared with the 20% contingency allowance contained in the costs of the alternative improvements), were M$ 2.3 milliQn (us$ 0.8 million) in 1973/1974 for widening of several intersections and $ 21.0 million (US$ 7.5 million) in 1979/1980 for widening of the roadway to 2 x 3 lanes. 14/ See: McIntosh and Quarmby, "Generalised Costs,and the Estimation of Movement Costs and Benefits in Transport Planning", MAU Note 179, Mathematical Advisory Unit, Department of the ELvironment, U.K., 1970, and van der Tak and Ray, "The Economic Benefits of Road Transport Projects," pp. 27-29, World Bank Staff Occasional Papers No. 13, IBRD, April 5, 1972 ANTNEX 7 Page 4L TABLE 1 M_AAYSIA KUALA LDMPUR UREBAN TrANSPORT PROJECT tUz BmJi;nG C0C.1/ NEr OF TLAX -(M cents per mile) Averge Operating Speed (m.p.h.) Vehicle 2vpe 10 15 20 25 30 35 40 Motorcycle 2.h5 2.03 1.88 1.70 1.62 1.56 IJhl Car 10.24 8.h41 7.50 6.95 6.59 6.33 6.13 Taxi (diesei) 6.76 5.55 4.94 4.58 3.93 L.16 h.03 Light Truck 8.49 7.27 6.66 6.29 6.oh 5.87 5.7h -Hes w -ruck 2l7.88 22.27 20.96 20.18 19.65 - - Rus -A'16.73 1476 13.77 13.18 12.78 - - L/ Operating costs exclusive of depreciation, interest and labor costs of drJver and crew computed separately, see Tables 4 and 3, Annex 7. Sonrce: Federal F=iahway 2 Feasibility Study (Draft), Freeman, Fox and Partners, September 1971. April 5, 1972 AmEX 7 page 5- TABLE 2 MALAYSIA KUAA.ALUNPUR ROAN MASPORT PROJECT VEHICLE DEB;EAIQf a MITEST CO6TST. NET 0? TAX (M cents) Depreciation Interest Vehicle Type per mile . per hour per hour- Motorcycle Car - Taxi (diesel) 2.85 27.60 28.00. Light Truck 4.41 10.70 13.30 Heavy Truck 4.12 16.30 30.00 Bus 3-07 24.00 41.60 1/ Portion of depreciation and interest costs estimated to reflect real costs of vehicle life and utilization. Source: Federal Highway 2 Feasibility Study (Draft), Freeman, Fox and Partners, September 1971. April 5, 1972 AdNEX 7 Page 6 MALAYSIA KUALA LUMP URBAN TRANSPORT PROJECT VEICLE LABaR C06TSIv (M cents per hour) Labor Components Vshicle Type Driver Crew Total Motorcycle . e car Taxd 100.0 - 100.0 Light Truck 95.0 - 95.0 ?Heavy Truck 98.6 37.l-C/ 135.7 Dws ~~~~~~117.9 59.0o1 176.9 ,/ Full wage costs of paid drivers and crew 2/ Average of .45 crew members per heavy truck 3/ Average of .50 conductors per bus Source: Federal Highwpy 2 Feasibility Study (Draft), Freeman, Fox and Partners, September 1971. April 5, 1972 -AtIEX 7 Page 7 TABLE 4 MALAYSIA ,KUALA LMeU 'URBAN TRANSPORT PROJECT PERSONAL RAVEL TIHE COSTS (M cents per-hour) Working . Time - Non-Working Time Adult - - Adult - - Driver or Driver or Child Vehicle Type Passenger- Passengerz/ PassengerY Motorcycle 160.0 40.0 13.3 Car 448.5 112.1 37.4 Taxi- 300.0 75.0 25.0 Light Truck- Heavy Truck4/ BushY 139.0 34.7 11.6 1/ Full wage rate of principal wage earner of household. 2/ Non-worklng time v 1/4 of wage rate of principal wage earner of household. 3/ Non-working time @ 1/12 of wage rate of principal wage earner of household. I/ Working time costs of driver and crew included in Vehicle Labor costs, Table3, Annex 7. Source: Federal Highway 2 Feasibility Study (Draft), Freeman, Fox and Partners, September 1971. April 5, 1972 TABLE . MALAYSIA KUALA LUMPUR URBAN TRAAPORT PROJECT POPULATION DISTRIBUTION IN THE ELANG VALLEYI 1957, 1970, 1980, 1985 (00's of persons) 1957 1970 L98OL" 19851/ Kuala Lunmur Metropolitan Area 402/ 707 1 X,150 Municipality of Kuala Luawur 316 452 6002/ 680?/ Petaling Jaya Area 403Y 143 205 245 Petaling Jaya Town 17 93 95 95 Contiguous Built-up Areas 2 o 50 11 a 1503' Balance of Metropolitan Area 44 112 195 225 Balance of Klang Valley 227 402 640 760 Total Klang Valley 627 1,109 1,64o 1,910 1/ Consultant estimate. 2/ Mission estimate based on partial census data or consultant forecast. 3/ 40,000 additional persons anticipated on the basis of latest development program of Selangor State Development Corporation. Source: 1957 and 1970 - Department of Statistics, 1957 and 1970 Census. - - 19BO and 1990 - Federal Highway 2 Feasibility Study (Draft), Freeman, Fox & Partners, September 1971. April 5, 1972 TABLE 2 MALAYSIA KUALA LUMPUR URBAN TJANSPORT PROJECT ROAD TRAFFIC GROWTH CH MAJOR APPROACHES TO KUALA- LUMPUR (Average Daily Traffic (Excluding Motorcycles)) 1963 1971 Ratio. Qrowth, % Direction: Route, Amount - Amount - ...L 1971/1963 Per Annum Northwest: Route 1/ , Ji Ipoh/'' J. Sentul 19,000 721.6O O7,00 19.8 2.-5 1.0 Northeast: Route 2 14,000 15tF9 29,000 12.2 .1i East, J. Gurney/, J. Ampang 6,000 94 35,00Q4 1Ip78 4.4 Southeast: Route l, 7, 000 80 o OOO 8' 2.9 4 q2 South: J. SungeLiBesi6 6,000 6,8 17.'00 2.6 13.9 Southwest: Federal Highway/ Jo Klang/ t J. Damansara 34,000 38,6 90,000 3t.8( 2.6 a2.9 Total 88,000 100.0 238,000 100,0 2.7 23.2 Source: T!unicipility of' Ku41a luipur, January:1972 April 5, 1972 TABLE 3 MALAYSIA KUALA LUMPUR URBAN TRANSPORT PROJECT ESTIMATES OF TRAVEL ON FEDERAL HIGHWAY2/ I (Average Dally Trips) 1971. 1980 1985 Consultant Forecast 1971_ 9__ __ _985 Travel Mode Vehicles P.C.U.'s / Persons Vehicles P.C.U.'s.Y Persons Vehicles P:. U.B s./ Persons Motorcycle 15,000 7,500 20,000 38,000 19,000 51,000 52,000 26,000 70,000 Car/Taxi 47,ooo 47,000 94,ooo 103,000 103,000 206,000 139,000 139,000 278,000 Bus 1,700 5,100 51,000 2,000 6,000 55,000 2,000 6,000 55OOO Light Truck 4,300 4,300 - 7,000 7,000 - 8,000 8,000 - Heavy Truck 4,500 11,500 - 7,000 1,000 - 8,000 22,000 - Total 72,500 75,400 165,000 157,000 154,000 312,000 209,000 201,000 403,000 Sensitivity Forecast3/ Total 72,500 125,000 170,000 1/ Volumes between intersections No. 3 and 4, see Map 3. 2/ Passenger car units (motorcycles @ 0.50, cars, taxis and light trucks @ 1.00, heavy trucks 0 2.75 and buses 0 3.00). 3/ 1980 and 1985 vehicles 0 80% of consultant forecast. Source: Consultant Forecast Mission Estimates - Federal Highway 2 Feasibility Study (Draft), Freeman, Fox and Partners, September 1971. TABLE 4i MAAYSIA KUALA LTJMPUR UlRBA TRANSPORT PROJECT DETAIL OF CCNsTUCTIcf CosT zsTAT Total in M: 1; Coneral 3,482,8Qo 2. Site Clearance 634,800 3. fencing 1,045,100 4. Esrthyorks 5,65i,3oo 5. Drainage 3,933,700 6. paving 8,017,600 7. Road Markings 195,600 B. Signs 474,300 9. Electrical Installation 2,024,000 10. Signals 314,700 11. Bridges 12,532,400 12. other Structures 2,829,500 13. Services (Contract) 796,500 Total 41,932,300 Source: Freeman, Fox & Partners, May 1972 May 26, 1972 UBLE 5 MALAYSU KUALA LUMPtR MURBA TENSPORT PfJCT ESTlT$MAD SCHEDUhZ OF DISBURSE3BTS IBRD Fiscal Year Cumlmative Disbursement and Quarter at Md of Q er 1972/73 December 31, 1972 1,400 March 31, 1973 1,400 June 30, 1973 1,800 1973/74 September 30, 1973 2,750 December 31, 1973 3,&)O March 31, 1974 5,100 June 30, 1974 6,400 197V/75 September 30, 1974 7,800 December 31, 1974 9,300 March 31, 1975 10s700 June 30, 1975 12,100 1975/76 September 30, 1975 13,200 December 31, 1975 14k300 March 31, 1976 14, 800 June 30, 1976 15,200 1976/77 September 30, 1976 15,200 December 31, 1976 16,000 May 26, 1972 NhASIA KUALA LUWMUR URBAN TRANSPORT PROJECT PUBLIC WOBX9 DEPAITIENT (West Malaysia) DIRECTOR GENERAL DEPUTY DIRECTOR GENERA1 DEPUTY DIRLTR aNUNRAL (DEVELOPMENT) m(UoINERNG SERVICeS) ARMED FORCES ROADS BUILDING WATER SUPPLIES EDUCATION WORKS HHCHANICAL ELEcrTRlICAL WORKS DIVISION DIVISION DIVISION DIVISION DIVISION DIVrSrON DIVISION I~ RJC FEEA LAD1 ~1t~- -1 I HIOHWAY PROJECT FEDERAL LAND DESION IMPLENENTATION PROJECT MANAGER STORIS QUANTITY SURVEYrNG PLANNING COORDINATION DEVELOPMENT SECTION SECTION DIVISION DIMVSION UNIT SECTION PROJECT SECTION MAIN CIVIL WORKS UNIT ACCOUNTINa DESIr AND LAND ACQUISITION UNIT DIVISION RESEARCH DIVISION SERVICE RELOCATION UNIT AUDrT AND ACCOUNTNOI UNIT DESION SOIL RSSEARCH MALAYSIA KUALA LUMPUR URBAN TRANSPORT PROJECT PROJECT IHPISMENTATION SCHIDCWLE 1972 1973 197 4 1975 1976 J F H A H J J AS O N D J F M AN J J A S O N D J F M A M J J A S O N D JrNAMJJASOND J F N A M J J A S O N D I. Construction 1. Detailed Engineering of Project Works 2. Land Acquisition * 3. Service Relocation gsu.amaaamaug,aa,a,a* h. Hain Construction asum.aam s,.aaau, II. Studies 1. Kuala Luspur Urban Transport Policy and Planning Studies ,,.aaea uua _ 2. Study of Road Maintenance Organiz ati on .. a.mmsa. _ 3. Detailed Engineering of Route 1 ,,,,,,,,,,,,,, ,, - preparation - Execution a0 , L e Q 6 ,. ,. X> 0~~~~~~~- MAP 2 .~~~~r reoD 4 0 500 , o wo 1oxu, rakX 1'0}o06, 30' 102�00' 3o30- \ 5XKuala Selangor / KLANG VALLEY REGION FBderallighway \S /t _K Vaffey Fqion- Bunft y ........... .S"nai .... iKAALMUNl9 I Inte utmiwnl Arport P-oposed Urbea Federal H4wv U wnff INTERNATIONAL 4 RPORT - ADiminictmt1ve OiettPioundariing Jay :~~~~~~~~~~ :L., A N Gy> BufIt-up.Areew -- IE=E5 C Cu tf -~~~~~~~~~~~~wht41a~~~m K L As\ / MAILES S TRZA I-T ang 49<3 a,tT2 pr;r ~OF MALA.CLCA Kaj g \ - - rrs . . U L U L AlT1., N 6 A 1TS US Thez Eondrio oNee no *e eo= to ,tnt0 ::RRIIORv 1972IBD30 MALAYSIA 101 40' KUALA LUMPUR URBAN TRANSPORT PROJECT URBAN FEDERAL HIGHWAY IMPROVEMENT Existing Main Roads Other Proposed Roads -3' 1 ' Railways - -. River Proposed Urban Federal Highway Improvement � Intersection Numbers Municipal or Toen Boundary A Built-up Areas o_ .________ KUALA LUMPUR - I ALA / ______ m@-bt' Ak' ;PET /- I -ia XvJ!/~~~~~~~~~~~~~~~~~~~~~~~~~~,d IfX .Al -92 IRE3708R S 0'~~~~~~~~~~~~~~~~~~~~~~~~~~0 .. z~~~~~~~~~~~~~~~~~~~~~~~~' 1" ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ zJ. Z A 4/V~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ I- C4,'. z ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Z0