Report No. 1673b-RW FILE COPY Appraisal of a Fourth Highway Project Rwanda February 6, 1978 Regional Projects Department Eastern Africa Regional Office FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit - Rwandese Franc (RF) US$1.00 - RF 92 RF I - USe 1.08 RF 1 million - US$10,800.00 WEIGHTS AND MEASURES 1 meter (m) 2 - 3.28 feet (ft) 1 square meter (m ) - 10.76 cubic feet (cu ft) 1 kilometer (km) 2 - 0.62 miles (mi) 1 square kilometer (km ) - 0.386 square miles (sq mi) 1 metric ton (m ton) - 2,204 pounds (lb) GLOSSARY OF ABBREVIATIONS ADT - Average Daily Traffic FED - Fonds Europeen de Developpement FRG - Federal Republic of Germany GDP - Gross Domestic Product MD - Maintenance Division MPC - Ministry of Post and Communications MPWI - Ministry of Public Works and Infrastructure ORT - Organization for Rehabilitation and Training RB - Road Branch RRI - Rhein-Ruhr Ingenieru-Gesellschaft (Consultants, Germany) voc - vehicle operating cost vpd - vehicles per day WFP - World Food Program GOVERNMENT OF RWANDA FISCAL YEAR January 1 - December 31 RWANDA FOR OFFICIAL USE ONLY APPRAISAL OF A FOURTH HIGHWAY PROJECT TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS ............................................. i 1. INTRODUCTION . .... . .......................... 1 2. THE TRANSPORT SECTOR ......... .. . . . . .. ...................................... 1 A. The Geographic and Economic Setting ................... I B. The Transport System ...... ............ ..................... . 2 C. Transport Policy, Planning and Coordination .. .......... 2 D. Previous Bank Group Involvement .............. ......... 3 3. ROADS ............................... .......... o .................... 3 A. The Network . ................-........-.... ...... 3 B. Traffic .............................................. . 4 C. Road Transport ........................... ............. 5 D. Financing ........ ..................................... 6 E. Administration ...................................... . 6 F. Planning, Engineering and Construction ............... . 7 C,. M4aintenance ......................................................... 8 4. THE PROJECT ................................................ 10 A. Objectives . ........................................... 10 B. Description ........................................... 10 C. Execution .............. ...... * ................ 14 D. Procurement . .......................................... 15 E. Cost Estimates ....... ................................... 16 F. Financing ............................................. 18 G. Disbursements ......................................... 21 5. ECONOMIC EVALUATION ............... ......................... 21 A. Economic and Social Aims .............................. 21 B. Area of Influence of the Road Betterment Program ...... 22 C. Main Benefits and Beneficiaries ......... .. ............ 22 D. Economic Analysis ..................................... 23 E. Sensitivity Analysis .. . ............. ... .. ................ . 23 6. AGREEMENTS REACHED AND RECOMMENDATION ...................... 24 This report was prepared by M. Melegari (Engineer), M. Le Blanc (Economist), and P. Brereton (Technical Editor). |This document has a restricted distribution and may be used by recipients only in the performance l |of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.| Table of ^,ontents (continued) TABLES: 1. Vehicle Fleet (1967-76) 2. Fuel Consumption (1971-76) 3. Revenues from Road Users (1971-76) 4. Expenditures for Roads and their Financing (1971-76) 5. Road Investment Program 6. Roads Proposed for Betterment Program 7. List of Equipment 8. List of Existing Technical Assistance 9. List of Proposed Technical Assistance 10. Distribution of Technical Assistance by Category of Work 11. Project Costs 12. Financing Plan 13. Estimated Schedule of Disbursements 14. Vehicle Operating Costs 15. Economic Costs and Benefits of Improvement Program 16. Economic Costs and Benefits of Rehabilitation and Upgrading Program CHARTS: 1. Present Organization of the Road Branch in the Ministry of Public Works and Infrastructure 2. Proposed Organization of the Road Branch in the Ministry of Public Works and Infrastructure 3. Project Implementation Schedule MAP: Rwanda: Fourth Highway Project (IBRD 12936R) RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT SUMMARY AND CONCLUSIONS i. This report appraises a highway maintenance project for which an Association Credit of US$15.0 million is proposed. The project is the second part of an ongoing maintenance program, the first part of which was financed by IDA Credit 299-RW under the Second Highway Project. The objective of this project is to continue improvement of road betterment and maintenance operations throughout the country and to strengthen the capabilities of the Road Branch. In so doing, the project will prevent deterioration of the road network, essential to the economy which is dominated by agriculture and which depends almost exclusively on agricultural exports. ii. The project consists of: (i) a four-year betterment program to improve 500 km of gravel roads, to rehabilitate or upgrade another 1,000 km of roads to gravel standards, and to seal about 100 km of heavily traf- ficked paved roads; (ii) a four-year program to strengthen and expand routine maintenance operations, especially manual, on about 3,500 km of paved and unpaved roads; (iii) a training program for maintenance personnel at all levels; and the equipment, vehicles, workshop facilities, materials, and technical assistance necessary for project implementation. iii. Total project cost is estimated at US$23.7 million, excluding taxes and duties, with a foreign exchange component of US$17.6 million. The project will be financed by an Association Credit of US$15.0 million which will cover about 63% of total project cost and 85% of foreign costs. Other external sources will provide about US$6.1 million, and the Government US$2.6 million excluding taxes. The Government will also provide about US$6.7 million for recurrent costs over the four years. iv. The bulk of equipment and workshop tools will be procured after international competitive bidding in accordance with Bank Group Guidelines. Spare parts, fuel and materials for the betterment program and the construc- tion of workshops and classrooms will be procured either on the basis of prices negotiated with established suppliers or through local competitive bidding in accordance with Government procurement procedures acceptable to IDA. Contracts of consultants already employed on the Second Highway Project will be extended under terms of reference and conditions acceptable to IDA. v. The proposed investment for the betterment program is economically sound, yielding an overall economic return in excess of 100%. For the improve- ment work, the rate of return is in excess of 150% while for the rehabilitation and upgrading, it is 35%. vi. Subject to the conditions outlined in para. 6.02 of this report, the project is suitable for an IDA Credit of US$15.0 million to the Government of Rwanda on standard terms. I RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT 1. INTRODUCTION 1.01 The proposed Fourth Highway Project is the second part of a program to carry out important betterment work and to strengthen and expand Rwanda's road maintenance capacity. The need for better road maintenance has been of Bank concern since 1967 when the Permanent Mission in Eastern Africa prepared a project to study road maintenance and to purchase emergency maintenance equipment. At that time the Government elected to seek financing from the United Nations Development Programme (UNDP) for detailed engineering of the Gisenyi-Ruhengeri road as well as for the highway maintenance study. Re- commendations of that study, prepared by the Italian Consultants, Electro- consult, were scaled down in the light of existing financial and human re- sources to form the basis of the present maintenance operations. The result of these operations include reduced transport costs, improved access to export routes, and more rapid communication between domestic centers of economic activity. 1.02 The Government, with the assistance of Consultants (Rhein-Ruhr Ingenieru-Gesellschaft: RRI, Federal Republic of Germany (FRG)), prepared the maintenance program, the first phase of which was financed under the Second Highway Project (Cr. 299-RW), in conjunction with Government contributions and grants from UNDP and the Federal Republic of Germany. The first phase did not fully accomplish the work planned, because of a variety of initial insti- tutional and financial problems, including the unexpectedly high inflation rates after 1973, the delay in starting up due to the slow mobilization of consultants, problems in starting the training of local staff, delayed delivery of equipment, etc. Implementation of the present project, which is the continu- ation of the Second Highway Project, will, however, proceed more smoothly since equipment procured under the project has arrived, technical assistance is in the field and staff training is well underway. 1.03 This report is based on the findings of an appraisal mission com- prising M. Melegari (Engineer) and M. Le Blanc (Economist) who visited Rwanda in February-March 1977. 2. THE TRANSPORT SECTOR A. The Geographic and Economic Setting 2.01 The Republic of Rwanda is 2a landlocked Central African country covering an area of about 26,000 km (see Map). Almost all of its external trade passes through Uganda, Kenya or Tanzania and is contingent on political developments beyond Rwanda's control. The topography, which changes from rugged mountainous terrain in the west to a rolling plateau scattered with swampy valleys in the east, makes road construction costly and transportation difficult. 2.02 The population, currently 4.3 million, is growing at an annual rate of 3%. Rwanda is one of the most densely pupulated countries in2 Africa with an average of 165 inhabitants per km but over 300 per km in t>-, --untry's more fertile western half where year-round rainfall permits several crops annually. The population is predominantly rural. Kigali, the capital and largest city by far, has a population of about 80,000 and, in the last four years, has shown an average growth of 17% per year. 2.03 Agriculture dominates Rwanda's economy and agricultural exports (mainly coffee, tea, pyrethrum) provide about 90% of the foreign exchange needed for essential imports. Per capita income in 1976 was estimated at US$127 of which only about 60% is accounted for in monetary terms. The in- dustrial sector is small, consisting of some light industry in Gisenyi, Kigali, Ruhengeri, and Cyangugu; most manufactured goods, fuel and some food items are imported. Tourism, though still very limited, is in- creasing at Gisenyi on Lake Kivu in the northwest and at the Akagera Na- tional Park in the northeast. B. The Transport System 2.04 The transport system relies on a very dense network of poorly maintained roads. There are no railroads, and the only water transport, on Lake Kivu, is of no real significance. Scheduled air transport is limited to international connections through Kigali, the only airport equipped to handle long-range jet aircraft. The dominance of road transport precludes any problems of intermodal coordination. Chapter 3 gives details of the road subsector. C. Transport Policy, Planning and Coordination 2.05 Rwanda's primary transport policy is geared to improving its access to export-import markets and consequently to the port of Mombasa or, alterna- tively, to Dar es Salaam. Toward this goal, the First Highway Project (para. 2.08) will expedite transit to Mombasa via Uganda. Access to Dar es Salaam was partially facilitated by improvement to paved standards of the Kigali-Rusumo road under a Chinese-financed project; the European Development Fund (FED, Fonds Europeen de Developpement) is considering financing improvement of the Rusumo-Lusahenga road, the remaining unimproved section of the road within Tanzania linking Rwanda to Dar es Salaam. 2.06 A second transport objective, that of improving interregional connections, involves a long-term plan to facilitate the country's social and economic integration by reconstruction or improvement of primary routes linking Kigali with the various regions of the country. The Government also recognizes that much can be done to improve the condition of the existing road network through better maintenance. 2.07 Road investment proposals are prepared by the Ministry of Public Works and Infrastructure (MPWI) and reviewed by the Plan Secretariat and the Ministry of Finance. Planning is adequate, and the choice of roads for upgrading as well as construction standards are appropriate. D. Previous Bank Group Involvement 2.08 The Bank Group has undertaken three road projects in Rwanda. The first, financed by a US$9.3 million IDA credit (196-RW) approved in 1970 and amended by the Association in 1975 to US$18.8 million, provided for the const- ruction of the Kigali-Gatuna road, the final link in an all-weather road joining Kigali via Kampala and Nairobi to the port of Mombasa. The project was completed in late 1977, having encountered many delays due to slow mobilization of the contractor, shortages of materials, increases in construction quantities, poor consultant supervision, and slow bureaucratic procedures. Cost overruns resulted from the severe inflation in 1973-74 and from currency realignments. 2.09 A second project approved in 1972, consisted of a program to reor- ganize and strengthen highway improvement and maintenance operations. The US$3.0 million credit (299-RW), amended in 1977 to US$4.2 million, helped finance a total project cost of US$7.2 million, increased from an appraisal estimate of US$5.1 million. Project completion was delayed from 1976 to the end of 1977 by: slow mobilization of expatriate experts; slow delivery of equipment and vehicles and periodic fuel shortages due to frequent border closures between Uganda and Kenya; and shortages of Government funds. Reduced operations and cost overruns resulted. At project completion, about 65 km of the planned 243 km of roads were improved, and 215 km of the planned 344 km were rehabilitated; 23% of the work was done in 1975, 32% in 1976, and 45% was done in 1977. However, in spite of the problems encountered, some gains have been made. The number of local staff, for example, has grown (para. 3.13) and would benefit further from the training offered under the proposed project (paras. 4.11-4.12). 2.10 The third project, financed by Cr. 475-RW approved in 1974, in- volved improvement to paved standards of the Ruhengeri-Gisenyi road (60 km). Having encountered problems similar to those which plagued the First High- way Project, project execution was completed in June 1977. The total project cost increased to US$8.7 million from the appraisal estimate of US$7.7 million; part of this increase (US$0.4 million) was financed by IDA under the supple- mentary financing credit for the First Highway Project. 3. ROADS A. The Network 3.01 The road network, totaling about 6,300 km, is one of the most dense 2 in Africa, with an average 250 m per km . It is divided into two classes: - 4 - (i) the national network (2,400 km), maintained by RB and comprising about 350 km of bituminous-surfaced roads, 280 km of recently regravelled roads, 770 km of very old gravel roads 1/, and 1,000 km of earth roads; and (ii)' the district network, consisting of 3,900 km of earth roads, maintaft'-d bI" local authorities. This classification, however, is only functional and unrelated to the standards of roads. All roads that are not bituminous- surfaced or recently regravelled are low standard earth roads characterized by corrugated surfaces, large ruts and potholes, and, in wet weather, by deep mud. B. Traffic 3.02 Since 1971, overall traffic has grown at an average annual rate of about 10%. Traffic volumes were estimated by RB, with assistance from consultants, on the basis of simple counts on selected roads but with no origin-destination surveys. According to these counts, which are made at irregular intervals and not fully reliable, about 1,300 km of roads have an Average Daily Traffic (ADT) of 100-300 vehicles per day (vpd) and 850 km have an ADT of 30-100 vpd, excluding traffic in urban areas. Trucks still account for a large ADT portion, varying from 25% to 50%, and on the Kakitumba-Kayonza road, at present the only route for export-import traffic to and from Uganda and Kenya, trucks account for 80% of ADT. The proposed project would continue the training of local staff provided under the Second Highway Project to improve the quality and reliability of traffic counts and to conduct origin- destination surveys (para. 4.12). 3.03 During 1967-71, the vehicle fleet grew at an average annual rate of 18%, declining in 1971-76 to an annual rate of 13% because of rising fuel costs. At the end of 1976 the registered fleet totalled about 13,000 vehicles, of which 7,150 (55%) were passenger cars, 4,200 (32%) light trucks and vans, and 1,650 (13%) heavy trucks (Table 1). This represents a vehicle density of 3 vehicles/1,000 persons, as compared to less than 2 vehicles/1,000 persons in Ethiopia and 11 vehicles/1,000 persons in Kenya. The 13% average annual growth rate of the vehicle fleet does not compare with the 10% average annual growth in road traffic because (i) passenger cars, which have the highest growth rate, are mainly used in towns where no counts are made; and (ii) local trucks have replaced foreign carriers so that new registrations have increased by 13% annually even though the actual number of trucks on the roads increased more slowly. 3.04 Fuel consumption by road vehicles has increased at an average annual rate of 16% since 1971. The increase in fuel consumption is higher than traffic growth because traffic counts exclude urban areas (Table 2). 1/ These roads, 10-20 years old, have never been regravelled, and their gravel surface has almost entirely worn off. 3.05 The typical axle-load in Rwanda of a 12 ton truck and 18 ton trailer is 8-9 tons, and that used for the design of roads is 13 tons. Overloading is for the most part prevented by steep gradients, which are common. Government is revising the still effective 1958 Belgian vehicle control regulations, which provide for a maximum axle load limit of only 5.5 tons for a single axle and 4 tons for a tandem axle. This low axle load limit will be revised upwards to the design capacity of the roads, that is, 13 tons. C. Road Transport 3.06 Rwanda's internal freight transport is handled by: TRAFIPRO 1/ with about 30 trucks and a few tractor-trailers carrying about 25% of the imports (25,000 tons) and collecting 30% of the coffee (5,000 tons); OPROVIA 2/ with about 20 trucks to haul approximately 16,000 tons of crops and other goods, such as flour; some agricultural companies; and a number of private owner- drivers. 3.07 All international transport is done by two competing Belgian forward- ing agencies, Agence Maritime International (AMI) and Transintra, which do not have trucks of their own but act as forwarding and receiving agents contracting with private Kenyan and Rwandese carriers. Among Rwandese carriers the Societe des Transports Internationaux de Rwanda (60% Government-owned, 40% multinational) is the most important with about 100 tractor-trailers, followed by Majyambere, a domestic operator, with 25 tractor-trailers. There are also small domestic truckers who generally operate as sub-contractors because of heavy border tolls on vehicles in Kenya and Uganda. 3.08 A public bus company, Regie des Transports Publics (RTP) under the Ministry of Post and Communications (MPC), provides intercity passenger service on 21 routes which cover about 2,000 km with approximately eighty 45-seat buses and twenty 24-seat buses throughout the rural area. A large number of pick-ups operate as taxis; although dangerous and not licensed for passenger service, they are extremely popular by being cheaper, stopping on demand, and allowing passengers to board with any type of baggage. 3.09 There is little regulation of the trucking industry and few admin- istrative restrictions on the importation of vehicles. A readily obtainable 1/ TRAFIPRO (Travail, Fidelite, Progres) is a locally owned cooperative created in 1965 with Swiss assistance. 2/ OPROVIA (Office National pour le Developpement et la Commercialisation des Produits Vivriers et des Productions Animales) is a Government organization for the development and commercialization of agricultural products, created in July 1975. - 6 - vehicle license is all that is needed to enter the trucking business. Tariffs vary, and competition is fairly strong, despite the existence of Government-controlled transport companies and Government fixed rates. Per- mits for passenger transport are available to anyone having a vehicle with seats, insurance for the vehicle and passengers, and a good conduct certi- ficate. D. Financing 3.10 Annual contributions of road users to Government revenues averaged US$2.5 million equivalent at current prices between 1971 and 1976, increasing at an average annual rate of 22% from about US$1.5 million equivalent in 1971 to US$4.0 million equivalent in 1976. Revenues in 1976 were 41% from import duties on fuel, 27% from vehicles, 8% each from spare parts and tires, and 16% from a combination of border tolls (US$30-60 equivalent per vehicle) and annual vehicle registrations (US$13-500 depending on weight) (Table 3). Total expenditures for roads, including external financing, have far exceeded road user contributions. Recurrent expenditures for maintenance, however, have been less than 50% of road users' contributions (Table 4) but 3% of total current Government revenues. 3.11 Total expenditures 1/ for roads, including foreign assistance, in- creased dramatically from about US$1.1 million equivalent in 1971 to US$16.9 million equivalent in 1976 (Table 4). Capital expenditures increased from US$650,000 in 1971 to US$15.2 million in 1976, and recurrent expenditures in- creased from about US$400,000 in 1971 to US$1.7 million in 1976. The total foreign aid supporting this growth increased from US$245,000 equivalent in 1971 to US$13.9 million equivalent in 1976. In contrast to the great rise in total expenditures for roads, Government contributions to capital and recur- rent costs increased at an average annual rate of 30% from about US$800,000 in 1971 to US$3.0 million in 1976, and expenditures for road maintenance in- creased at an annual average rate of 20% from about US$400,000 in 1971 to US$1 million in 1976 (Table 4). Maintenance expenditures, however, are still below adequate levels, estimated between US$2.5-3.0 million, and the proposed project addresses this problem. [During project execution, road betterment work will substitute for a portion of the presently required maintenance and therefore an amount of funds less than US$2.5-3.0 million will be needed.] Road user revenues will be more than adequate to meet the recurrent costs over the project period (para. 4.24). E. Administration 3.12 The existing organization of RB under MPWI is shown in Chart 1. RB is responsible for road construction and maintenance of the national 1/ All figures in para. 3.11 are at current prices. - 7 - network (2,400 km) while local authorities are responsible for the district network (3,900 km). RB includes three technical departments: the Planning and Engineering Department, which also supervises works; the Workshop and Warehouse Department for the equipment and vehicles pool; and the Works Department for road construction and maintenance. In addition, one adminis- trative division is responsible for staff administration and unit costing of maintenance operations. Although RB's organization is generally adequate, the Workshop and Warehouse Department, whose management is financed by FRG, has become too autonomous of RB, and this increased independence has undercut inter-departmental coordination and efficiency. This situation will be correct- ed under the proposed project (para. 4.14 and Chart 2). 3.13 Until the end of 1975, RB had 11 technicians, only one of whom had a university degree in engineering. In early 1976, 15 technicians were added, including six engineers. The present total of 26 technicians is an adequate nucleus of counterpart staff. Capability and efficiency, however, are not yet satisfactory because most members of the local staff are young and lack the experience required for their positions; RB must, therefore, still depend heavily on foreign technical assistance. To offset this lack of experienced local staff, RB staff includes sixteen expatriates (nine provided by FRG, five by IDA and two by Belgium), who occupy positions ranging from advisor to the RB head to chief of a mechanized unit. Of the sixteen expatriates, five are assigned to the Planning and Engineering Department, six to the Works Depart- ment (five to the Maintenance Division, one to the Construction Section) and five to the Workshop and Warehouse Department (Table 8 and Chart 1). These experts, however, have been unable to effectively carry out their most impor- tant duty, the training of staff, for two reasons: (i) the Government has not given them the necessary authority, and (ii) the young inexperienced local staff have been reluctant to work as subordinate counterparts to expatriate experts, and have insisted on holding ultimate authority in most decisions, often disregarding the expatriate experts' advice and profiting only little from the experience of such experts. Government indicated that it had already begun to take the necessary steps to improve the relationships between counter- part staff and expatriate experts and that discipline is being imposed on local staff to pay appropriate attention to the advice offered by experts. Training for local staff will be provided under the project by a comprehensive training program based on an Organization for Rehabilitation and Training (ORT) Consultant's report, prepared in 1974 and updated in March 1977. The program will include on-the-job training, courses in Kigali, and scholarships abroad (paras. 4.11-4.12). F. Planning, Engineering and Construction 3.14 RB is responsible for planning, engineering, and supervising road construction work but is capable of handling only minor projects. It con- sequently entrusts the design and supervision of major projects to consultants. Major road construction is let to contract according to the procurement pro- cedures of the financing agency. There are only two local road construction - 8 - firms, both branches of foreign companies; among the few domestic building contractors, one or two are potential road builders, but they presently lack experience in road construction, skilled and experienced staff, and the capital for equipment. The proposed project will address this staff train;ng -r-^ by providing training through the operation of two mechanized units for the betterment program (paras. 4.03 and 4.06). The Association is planning to deal with some of the problems endemic to Rwanda's construction industry, and particularly to road construction, under a possible industry project. 3.15 The RB road investment program up to 1983 (Table 5) appears adequate for Rwanda's needs. No Government funds will be required for the program which is being financed entirely by either FED or FRG. Thus contrary to the past, the Government will have more funds available for maintenance. The proposed project includes no construction since the only two road improvements which appear economically justified are already being financed by bilateral agencies. G. Maintenance 3.16 A 1970 consultants' survey found that most of Rwanda's 6,300 km network was ungravelled, and roads with a gravel base were already badly deteriorated. These unfavorable road conditions, which have slowed travel, rapidly worn out vehicles and substantially increased vehicle operating costs, have continued because maintenance operations under the Second Highway Project were hampered by a variety of problems (paras. 2.09, 3.19-3.21). In 1977, consultants (RRI) updated the original survey and found that about 770 km of gravel roads had completely lost their base course, and 500 km of these roads also required improvement of their geometric standard for the traffic they carried. In addition, about 730 km of earth roads were found to need gravelling. The proposed project addresses these problems through a better- ment program (para. 4.02); a list of roads included in this program is given in Table 6. 3.17 RB, which is responsible for planning, supervising and executing routine and periodic road maintenance on the national network (2,400 km), will in the future assume responsibility for an additional 1,100 km of roads. The proposed project will allow them to do so by gradually providing the staff, equipment, vehicles and facilities necessary. Until 1972, RB operations were limited to the simplest manual operations, such as patching and shoulder clearing, because of insufficient staff, labor, road equipment and vehicles. The extreme shortage of equipment and vehicles made mechanized maintenance of unpaved roads almost nonexistent at that time, although one mechanized unit, equipped under the First Highway Project, was used to reshape the heavily trafficked Kigali-Kakitumba road (see Map). Although progress was slower than expected under the Second Highway Project, maintenance of unpaved roads improved somewhat from 1973, and especially from mid-1976 when, with the full use of equipment, operations improved considerably. At present there is practically no routine and periodic maintenance of paved roads, about - 9 - 100 km of which have traffic of about 500 vpd and are in urgent need of re- sealing. Routine maintenance of gravel and earth roads is carried out by 165 road gangs, each crew composed of a foreman and 12 roadmen with respon- sibility for 12-15 km of roadway. Only reshaping is carried out mechani- cally by one unit of three graders. Periodic maintenance (regravelling) and improvement work are executed by two mechanized units of 25 skilled workers and 100 laborers each and by two labor units of 2,000 men. Neither mechanized unit is fully equipped or regularly supplied with spare parts and fuel. In 1977, one unit improved 35 km of road while the other did 90 km of regravelling. The proposed project includes the full equipping and supplying of the two improvement units (para. 4.10) in addition to a training program to increase the number of skilled staff and experienced labor (para. 4.11). 3.18 Workshop facilities (a central workshop in Kigali and a smaller shop in Ruhengeri) are adequate for the maintenance now performed, but would be unable to handle the equipment required for the proposed project and would be far from the sites of some project operations. To meet these needs the proposed project will build and equip two small workshops in other parts of the country, and the Kigali facility will be enlarged (para. 4.10). 3.19 MPWI and the Association agreed that the effectiveness of the proposed project and future maintenance operations will depend on timely measures taken to avoid a repetition of mistakes and to overcome difficulties experienced during execution of the Second Highway Project. Among other problems which arose in the course of that project, an inadequate stock of spare parts often curtailed, and sometimes stopped, the use of equipment and vehicles. In addition, many fuel shortages occurred because of frequent closures of the border between Uganda and Kenya. Since Rwanda has very few supply facilities and is landlocked and far from markets, procurement of these goods can take from 6 to 12 months, causing repair, maintenance, and operation of equipment and vehicles to become slow and costly. To prevent the reoccurrence of this problem, the proposed project would build up a stock of spare parts and fuel for the betterment program early in the project's course (para. 4.19). 3.20 Under the Second Highway Project, a cost accounting system for maintenance operations was introduced in early 1976 by consultants. Adoption of the system was initially slow but is now improving. To aid execution of the proposed project, Government agreed to fully implement within RB a sound cost accounting system satisfactory to the Association and to ensure that separate accounts are kept to reflect the operations, resources and expendi- tures of RB(para. 4.14). 3.21 Certain problems encountered during the Second Highway Project are caused by RB's weaknesses and bureaucracy, and continue to hinder maintenance work. These include the following: (i) drivers and operators of RB vehicles and equipment are hired and paid by MPC so that RB has very little control; - 10 - (ii) because of the complex chain of approval needed for purchase orders, it takes as long as thirty days for an order to reach a supplier; and (iii) invoices must pass through an equally lengthy chain, delaying payments by as much as six months after delivery and consequently causing suppliers either to add an ex- cessive mark-up or to refuse to accept new orders. Like- wise, staff salaries may be delayed by as much as two months. Government indicated that it has already taken some steps to correct these issues through a proposed budgetary and administrative reorganization of RB (para. 4.14). 4. THE PROJECT A. Objectives 4.01 The objectives of the proposed project are to prevent the further deterioration of the main road network and to expand and strengthen mainte- nance operations and the capabilities of the Road Branch. B. Description 4.02 As stated (para. 1.02) the proposed project is the second part of an ongoing highway maintenance project whose first phase was carried out under the Second Highway Project. The project components are: (i) a four-year betterment program to (a) improve about 500 km of gravel roads, (b) rehabilitate about 270 km of very old and deteriorated roads to gravel standards, (c) upgrade about 730 km of earth roads to gravel standards, and (d) seal about 100 km of paved roads with a coat of bitumen and stone chippings; (ii) a four-year routine maintenance program to strengthen operations on about 3,500 km per year of earth and gravel roads and to initiate routine maintenance on about 350 km of paved roads; (iii) a strengthening and expansion of RB's capacity to implement both programs through (a) procurement of some additional equipment and vehicles, (b) technical assistance; (c) con- struction and expansion of workshops; (d) procurement - 11 - of machine and hand tools; and (e) procurement of spare parts, fuel and materials (only for the betterment program); and (iv) a training program for maintenance personnel at all levels, including courses and scholarships abroad. (i) Four-Year Betterment Program 4.03 To prevent the further deterioration of the road network (para. 3.16), the proposed project will improve about 500 km of national roads, on which the original gravel base has completely worn off because of lack of maintenance. Two mechanized units will do the work, which entails: (i) minor improvement of curves, (ii) reduction of gradients of over 12%, (iii) widening of the roadway, especially at dangerous curves, (iv) filling of low points, (v) reconstruction of ditches, (vi) replacement of broken culverts, and (vii) construction of a base course, 15 cm thick and 5-7 m wide, with selected materials. 4.04 Rehabilitation of 270 km of gravel roads and upgrading of 730 km of earth roads to gravel standards (para. 3.16) will be carried out by two mechanized units which will construct a base course, 10-15 cm thick and 4-5 m wide with selected materials. 4.05 The Government has been unable to maintain Rwanda's paved roads (para. 3.17). This situation is particularly desperate on three stretches of roads totalling about 100 km, most of which are more than 10 years old with traffic volumes of about 500 vpd. The proposed project will undertake the sealing of these 100 km of roads, using one mechanized unit to apply a coat of bitumen and stone chippings. The unit will be staffed with a chief, one assistant, 10 skilled workers and 20 laborers. A list of roads for the betterment program was agreed with the Government and is given in Table 6 (also see Map). 4.06 The betterment program will be carried out by force account. The Government originally considered engaging contractors for this work, but subsequently decided to implement the program by force account, so that the experience gained from the work can benefit RB's organization. The two improvement units will each do 50 km of road improvement per year for the first two years, 65 km in the third year and 85 km in the fourth year. The two rehabilitation and upgrading units under the project will each do 100 km in the first year, 105 km in the second, 140 km in the third, and 155 km in the fourth year. The projected output of these units is fully consistent with the amount of work being carried out presently (para. 3.17) since, under the proposed project, these units will be fully equipped and supplied and the local staff will be more productive due to the experience gained under the Second Highway Project. (ii) Four-year Maintenance Program 4.07 The proposed Credit will provide RB with the resources to expand its routine maintenance operations from the present 2,400 km to 3,500 km - 12 - (para. 3.17). Routine maintenance of the entire earth and gravel road net- work will be carried out by one mechanized unit staffed by 250 road gangs, and equipped with 8 trucks and 3 graders. Each gang, staffed with one foreman and twelve roadmen, will be responsible for approximately 12-15 km of ro.d, its work mainly involving patching, cleaning culverts, and clearing shoulders, slopes and ditches. The unit will reshape about 1,100 km of gravel and earth roads three times a year. 4.08 Routine maintenance of 350 km of now unmaintained paved roads will be carried out by one unit of six gangs, the unit being staffed with a chief, two assistants, twelve foremen, sixty skilled workers and ninety laborers (for equipment involved, see Table 7). The work will be done by labor-intensive methods and will consist of the same operations as for routine maintenance of earth and gravel roads (para. 4.07). 4.09 Routine and periodic maintenance of structures and road signs will be carried out by one unit of two gangs over the entire network (equipment listed in Table 7). The unit, staffed with a chief, an assistant, 4 foremen, 40 skilled workers, and 60 laborers, will repair stone bedding, replace timber flooring and paint metal structures and signs. (iii) Strengthening and Expansion of RB 4.10 In order for RB to strengthen and expand its capacity to imple- ment the proposed programs, the project will provide: For Both Betterment and Maintenance Programs: (i) procurement of some additional equipment and vehicles to supplement those purchased under the Second Highway Project (Table 7); (ii) technical assistance, amounting to a total of 607 man-months, to MD, the betterment and maintenance units, and workshops (para. 4.13); For the Betterment Program only: (iii) expansion of the heavy equipment section in the Kigali Central Workshop and addi ion of a new section for light vehicles (totaling 1,650 m ), and the construction of two small workshops in But re and Cyangugu in the south and southwest of Rwanda (450 m each); (iv) procurement of additional machine and hand tools for the workshops; and (v) spare parts, fuel, materials, as well as staff and labor for five mechanized units in the betterment program. - 13 - (iv) Training Program 4.11 Because of insufficient skilled local staff, RB still needs a con- siderable amount of technical assistance to carry out the proposed programs, both to run operations efficiently, and to train RB counterparts and staff at all levels. Even though this technical assistance absorbs a sizeable portion of the proposed project funds, it will advance the Government's objective of gradually staffing RB with sufficiently qualified local personnel. The Government believes that this goal can be achieved only through an extensive training program (para. 4.12). To reach greater staffing self-sufficiency, Government has recognized the need for and taken steps to: (i) retain on the project the present number of counterparts in RB for training purposes, giving clear and precise instructions to these counterparts on their roles, their rights and duties, and the roles of the expatriate experts during their training (para. 3.13); (ii) ensure that terms of reference of the expatriate experts provide them with the authority required to carry out their training duties effectively (para. 3.13); and (iii) allocate and retain a sufficient number of trainees to the project. The proposed project will be helped in this by the World Food Program (WFP) which will provide food rations as part of the salaries for about 125 trainees for 4 years. WFP will also supply food to 250 mechanical unit workers who will be receiving on-the-job training. As a condition of credit effectiveness, Government agreed to make the necessary arrangements to secure food rations from WFO. 4.12 Under the proposed project, training will be given through courses to be held in Kigali, on-the-job training and scholarships abroad. All training will be based on a program described in an ORT report (para. 3.13), already approved by Government. Under this program, training will be pro- vided to about 300 road workers, 60 mechanics, and 30 administrative staff. A special traffic count unit of about 20 men will also be set up and trained under the project. The whole program will require 84 man-monthg of consul- tants' services, the construction of classrooms (totaling 650 m ), procure- ment of teaching aids, and 72 man-months of scholarships abroad. Technical Assistance 4.13 In total, technical assistance to be furnished to RB under the proposed project over its four years of execution amounts to 607 man-months, of which 480 man-months are for experts already on the job (Tables 8, 9 and 10). This is a high input of technical assistance, but the Government prefers to make a concerted effort at this time to - 14 - take advantage of experience gained in the earlier project and the continuity of present technical assistance. About 75% of the total will be devoted to carrying out the betterment program by force account. As itemized in Table 9, IDA would finance about 227 man-months, UNDP 121, Federal Republic of Germany 216, and Belgium 43. As a condition of credit effectiveness, Gov- ernment agreed to secure the necessary cofinancing for technical assistance from the respective cofinancing agencies. C. Execution 4.14 MPWI, through RB, will be responsible for the execution of the proposed project which is scheduled to begin in early 1978 and end in late 1981. Government has agreed to an implementation schedule (Chart 3), quar- terly progress reporting requirements, and the preparation of an evaluation report promptly after project completion. RB, with the amount of technical assistance proposed, will be able to execute the project successfully, pro- vided that Government follows up on steps already taken, including: (i) to fully implement within RB a sound cost accounting system satisfactory to the Association and to ensure that separate accounts are kept to reflect the operations, resources and expenditures of RB (para. 3.20); (ii) to give RB authority to hire, supervise and dismiss vehicle drivers and equipment operators (para. 3.21); and (iii) to simplify RB's procurement and payment procedures (para. 3.21). In addition, as a condition of effectiveness, Government will place and maintain RB's existing Workshop and Warehouse Department under the authority of RB's Works Department as a division at the same level as the Maintenance Division (para. 3.12). Labor- and Equipment-Intensive Methods 4.15 The Government considers that routine maintenance of all roads should be carried out with labor-intensive methods, as is now done with about 2,500 laborers, and periodic maintenance and betterment work should be car- ried out with equipment-intensive methods. This is in line with the Bank's recommendation made at appraisal of the Second Highway Project. The Govern- ment considers that investment in equipment for the proposed betterment pro- gram and in trucks to provide mobility for the routine maintenance program (labor gangs) is necessary. It is prepared as needed to strengthen the pres- ent organization in order to improve the labor-intensive techniques and oper- ations which it now carries out. - 15 - 4.16 To assist Government the Association is planning to send an expert who would, during a short mission to Rwanda, review the situation with respect to the use of labor-intensive methods and make recommendations to the Govern- ment on appropriate work methods. Following this, the Association and the Government will review the expert's recommendations and discuss what should follow in the light of these recommendations. In the meantime, the Govern- ment, although calling for tenders for the entire list of equipment (Table 7), plans to defer purchase of equipment valued at about US$500,000 including: two angle-dozers, two loaders, 2 pneumatic tired tractors and six tipper trucks. D. Procurement 4.17 Project costs have been estimated in detail, and RB is ready for project initiation with specific requirements for the betterment program. Bidding documents, preparatory to International Competitive Bidding (ICB), for equipment (US$3.4 million), machine and hand tools (US$160,000), and plans for workshop and classroom construction (US$0.5 million and US$150,000 respectively) were ready at the time of appraisal, were reviewed by the appraisal mission, and were found satisfactory. Except for small amounts of equipment which should be standardized with that existing, highway mainte- nance equipment (US$3.0 million), as well as machine and hand tools, will be procured through ICB in accordance with Bank Group "Guidelines for Procurement". Bid documents give due attention to equipment standardization and to the aftersale services offered by possible suppliers. Spare parts, fuel and bitumen (US$3.2 million, US$3.7 million and US$665,000 respectively) will be procured on the basis of prices negotiated with established suppliers. 4.18 Materials such as cement, steel and timber for the betterment program and construction of workshops and classrooms will be procured on the basis of local bidding procedures in accordance with Government procurement procedures which have been found satisfactory by IDA. Individual items not suitable for bulk purchase, costing under US$25,000, may be procured by nego- tiated purchase after sollicitation of quotations from suppliers or contrac- tors; the total amount of these purchases will not exceed US$200,000. 4.19 Early procurement of stocks of spare parts and fuel will be impor- tant to successful implementation of the betterment program (para. 3.19); therefore, some spare parts (US$1.0 million) and fuel (US$0.1 million) will be procured in the early stages of the project. Replenishment of the stock will be based on the following estimated consumption rates per km agreed with Government: for the improvement of 500 km of gravel roads; spare parts US$4,000 fuel US$4,300 - 16 - for the rehabilitation of 270 km of gravel roads, and the upgrading of 730 km of earth roads; spare parts US$2,600 fuel US$2,800 These rates, which were found reasonable, will be used to disburse from the Credit account against certification by consultants of completed work. Should these rates vary more than expected, the Government will justify the varia- tions before IDA approves of disbursing for replenishment. 4.20 The Government intends to extend the ongoing contracts for technical assistance financed by IDA and UNDP under the Second Highway Project. The contracts have been updated during execution of the earlier project to ensure that they give expatriate experts sufficient authority to carry out their training duties. Terms of reference included in contracts for technical assistance to MD under the Second Highway Project (consultants RRI) will be used for the proposed project and have already been approved by IDA. E. Cost Estimates 4.21 Total project costs, net of taxes but including physical and price contingencies, are estimated at US$23.7 million. The foreign exchange compo- nent is US$17.6 million (74%). Government will exempt the project from all taxes and duties. A summary of cost estimates is given below and detailed cost estimates are given in Table 11. - 17 - Local Foreign Total Local Foreign Total Foreign ------RF million------- -----US$ '000---- % Project Cost A. Betterment Program (basic costs /1) (i) Procurement of equipment 4.7 213.3 218.0 51 2,319 2,370 98 (ii) Procurement of machine and hand tools 0.3 12.4 12.7 3 135 138 98 (iii) Construction and expansion of workshops 13.3 29.3 42.6 145 318 463 69 (iv) Technical Assistance (446 man-months) 71.0 283.5 354.5 772 3,082 3,854 80 (v) Operating Costs Improvement of gravel roads (500 km) 107.2 206.2 313.4 1,165 2,241 3,406 66 Rehabilitation of gravel roads (270 km) 35.1 67.0 102.1 381 728 1,109 66 Upgrading of earth roads (730 km) 95.0 181.1 276.1 1,033 1,968 3,001 66 Sealing of paved roads (100 km) 16.5 68.5 85.0 179 745 924 81 Subtotal A 343.1 1 061.3 1,404.4 3,29 11,536 15.265 75 B. Routine Maintenance Program (basic costs /1) (i) Procurement of equipment 1.3 52.0 53.3 14 565 579 98 (ii) Technical Assistance (161 man-months) 25.7 102.3 128.0 279 1,112 1,391 80 Subtotal B 27.0 154.3 181.3 293 1.677 1,970 85 C. Training Program (basic costs /1) Subtotal C 64.9 72.9 137.8 706 792 1.498 53 D. Contingencies (i) Physical: (a) 10% on A 34.3 106.1 140.4 373 1,153 1,526 75 (b) 10% on B 2.7 15.4 18.1 29 168 197 85 (c) 10% on C 6.5 7.3 13.8 71 79 150 53 Subtotal D(i) 43.5 128.8 172.3 473 1.400 1.873 75 (ii) Price /2 (a) 16% on A + D (i)(a) 70.4 174.1 244.5 765 1,892 2,657 71 (b) 10% on B + D (i)(b) 3.8 16.9 20.7 41 184 225 82 (c) 11% on C + D (i)(c) 7.5 8.9 16.4 82 97 179 54 Subtotal D (ii) 81.7 199.9 281.6 888 2.173 3.061 71 Subtotal D 125.2 328.7 453.9 1 361 3,573 4 934 72 Total Project Cost 560.2 1 167.2 2 177.4 6.089 17,578 23 667 74 /I All basic costs are at December 1977 prices. f2 Price contingencies, which provide for anticipated cost increases over the implementation period, were derived as follows, expressed in %: 1977 1978 1979 1980 1981 Equipment and tools 7.5 7.5 - - - Construction of workshops 9.0 9.0 - - _ Operating costs 9.0 9.0 9.0 8.0 8.0 Technical assistance, training, scholarships 8.0 8.0 8.0 8.0 8.0 - 18 - 4.22 The basic costs, estimated at January 1977 prices and updated to December 1977, have been derived as follows: (i) Equipment and machine/hand tools: Estimates were prepared by consultants (RRI) on the basis of unit prices quoted by Kigali suppliers. The foreign component is based on c.i.f. cost Kigali, and the local component includes local handling and transport costs. (ii) Construction of Workshops and Classrooms: Estimates of the local, foreign and total costs of construction items were prepared by consultants (RRI) on the basis of unit prices quoted by domestic builders for similar work. (iii) Betterment Program: Operating costs were estimated by consult- ants (RRI) and based on prices of spare parts, fuel, materials and personnel, and on average outputs recorded in Rwanda, and in other African countries for similar works. The foreign component for spare parts, fuel and materials was calculated on the basis of c.i.f. costs Kigali and the local component includes local handling and transport costs. (iv) Training Program: Estimates were based on a specific price proposal from ORT consultants, who prepared the training program, and were found reasonable when compared to similar works in other African countries. (v) Consultant Services for Technical Assistance: Estimates for consultant services were based on actual costs for similar services under the Second Highway Project. They were compared to similar costs in other countries and found reasonable. The billing rate is estimated to average US$6,500 per man-month, including salaries, overheads and fees. Reimbursable expenses payable to consultants are estimated to average US$1,500 per man-month including housing, internal and external transport, telecommunications, reports, etc. Physical contingencies of 10% have been included in all items. Price contin- gencies were calculated for both local and foreign costs during execution of the proposed project from 1978 to 1981. Price contingencies for technical assistance were calculated on the basis of an annual 8% increase. F. Financing 4.23 Including the IDA Credit of US$15.0 million, external sources would provide US$21.1 million, about 90% of the estimated total capital cost of the project, net of taxes, of which about US$17.6 million will cover - 19 - 100% of the estimated total foreign cost and US$3.5 million will cover about 57% of the estimated US$6.1 million local cost. The Government would provide the remaining 43% of the total local cost (US$2.6 million or 11% of the total project cost). IDA, UNDP and Government will finance their project cost shares jointly, whereas FRG, Belgium and WFP will offer parallel financing. As a condition of credit effectiveness, Government agreed to make all neces- sary arrangements to secure the needed cofinancing. 4.24 Recurrent costs for the four-year routine maintenance program have been estimated at US$6.7 million equivalent. Provision of not less than US$1.8 million equivalent for routine maintenance operations during 1978 is a condi- tion of Credit effectiveness. Goverment has agreed to provide a minimum of US$1.6 million equivalent every calendar year during the execution of the project starting with the year 1979. Government also undertook to exchange views with the Association on the adequacy of these amounts by October 31 of each year, starting with 1978. Without the project, maintenance expenditures would be considerably higher (para. 3.11) since some of the betterment work executed under the project will take the place of routine maintenance. The financing plan is summarized below and detailed in Table 12. - 20 - % of % of % of FINANCING PLAN Local Total Foreign Total Total Total - US$'000… I. Project Costs 1. IDA Funds /1 Betterment Program 349 12,149 12,498 Routine Maintenance Program (excluding recurrent costs) 138 1,196 1,334 Training Program 200 968 1,168 IDA Financing 687 11.5 14,313 81.5 15,000 63.0 2. UNDP Funds /2 Betterment Program 187 748 935 Routine Maintenance Program 73 292 365 Training Program _- - _ UNDP Financing 260 4.0 1,040 6.0 1,300 5.5 3. FRG Funds /2 Betterment Program 351 1,410 1,761 Routine Maintenance Program 112 446 558 Training Program 75 18 1 FRG Financing 463 7.5 1,856 10.5 2,319 10.0 4. Belgian Funds /2 Betterment Program 69 274 343 Routine Maintenance Program 24 95 119 Training Program - - - Belgian Financing 93 1.5 369 2.0 462 2.0 5. WFP Funds Betterment Program 1,369 - 1,369 Routine Maintenance Program - - - Training Program 631 - 631 WFP Financing 2,000 33.0 - 2,000 8.5 6. Government Funds Betterment Program 2,542 - 2,542 Routine Maintenance Program 16 - 16 Training Program 28 - 28 Government Financing 2,586 42.5 - 2,586 11.0 Total Project Financing Requirements 6,089 100.0 17,578 100.0 23,667 100.0 /1 All amounts include contingencies but exclude taxes. /2 Technical assistance only. - 21 - G. Disbursements 4.25 Disbursements will be made for 100% of c.i.f. costs (Kigali) of maintenance equipment, spare parts, fuel, materials, and machine/hand tools for workshops; 69% of the total costs, net of taxes for expansion and con- struction of workshops; 81% of the total cost, net of taxes, for construc- tion of classrooms; 100% of the cost of consultant services, 98% of the c.i.f. cost (Kigali) for teaching aids; and 100% of the total cost of scholarships. Retroactive financing of US$250,000 will be required to meet fees of consul- tants now on the job and to purchase spare parts and fuel needed early for the project. A schedule of estimated disbursements is given in Table 13. Replenishment of stocks of spare parts and fuel will be documented and based on estimated consumption rates per km as described in para. 4.19. The Gov- ernment's contribution towards consultant costs will consist of salaries of RB supporting staff, office facilities and equipment, secretarial staff, and utilities. Any surplus funds remaining in the Credit amount upon completion of the project could be used, in agreement with the Association, for addi- tional equipment and materials. 5. ECONOMIC EVALUATION A. Economic and Social Aims 5.01 Road transport continues to play a vital role in Rwanda's economy. While the network is densely developed over the country, only a few roads provide reliable all-weather service. The bulk of the network is in poor condition resulting in high transport costs which are passed on to consumers through high prices and which consequently aggravate the disadvantages in- herent in a landlocked country. Producers are similarly affected by poor road conditions since high transport costs decrease their rate of return. Thus the improved road network, by reducing transport costs, is expected to stim- ulate production, especially in the agricultural sector, and so generate greater returns to the producers. 5.02 The aims of the highway betterment and maintenance programs are to improve interregional connections in Rwanda and to develop a network of efficient and reliable routes for the transport of imports and exports since the monetary part of the economy is very dependent on external trade. In 1974, the last year for which figures are available, the value of exports equaled about 13% of monetary GDP and that of imports, about 22%. To meet or surpass these levels, the project aims at improving and preserving the exist- ing network and eliminating the backlog of maintenance that has accumulated. - 22 - B. Area of Influence of the Road Betterment Program 5.03 The proposed betterment program will comprise: improvement of about 500 km of gravel roads; rehabilitation and upgrading of 1,000 km of earth and gravel roads; and sealing of 100 km of paved roads. The project will cover roads of international, national and regional interest, and will have an impact on a major portion of Rwanda's territory and population. The results of the improved road network will allow the country to better collect and distribute agricultural and mining production destined for local consumption and export. 5.04 Rwanda is currently trying to increase its revenues from tourism which will consequently emphasize the role of roads, particularly those roads adjoining national parks. The greatest influence, however, will be felt in the agricultural sector, where improved roads will allow the regions' produc- tion to be channelled to markets and will consequently provide an incentive to increased production in this sector. C. Main Benefits and Beneficiaries 5.05 The main quantified benefits from the betterment program will be the savings in vehicle operating costs (voc), which will primarily accrue to road users (Table 14). Domestic freight rates can be expected to stabilize as a result of road betterment and maintenance. Furthermore, since competi- tion in the road transport sector is keen, it should be expected that pro- ducers and consumers will share the profits of road users. 5.06 The betterment program yields an overall economic return in excess of 100%. Improvement of 500 km of roads yields an economic return in excess of 150% (Table 15), while the return on rehabilitation and upgrading of 1,000 km of roads is 35% (Table 16). In Rwanda vehicle operating costs are substan- tially higher than those in several neighboring countries because of the very poor road conditions. Steep grades and tortuous terrain result in low aver- age speeds and high fuel consumption. Very rough running surfaces on most roads cause rapid deterioration of tires, shock absorbers and springs, result- ing in high maintenance and repair costs and high depreciation costs due to the shortened vehicle life. The proposed betterment program will help reduce substantially these components of vehicle operating costs which are particu- larly sensitive to road conditions. Most of these expected savings are likely to result in appreciable foreign exchange savings as well. Unquantified ben- efits include time savings and increased comfort to road users, reduced acci- dents, and better and more rapid access to medical and other social facili- ties. 5.07 The benefit-cost ratio discounted at 12% for the improvement component of the betterment program is 3.5 to 1, while for the rehabilita- tion and upgrading component it is 1.46 to 1. - 23 - D. Economic Analysis 5.08 The basis for the economic analysis of the betterment program is an assessment of costs and expected benefits with and without the pro- posed program over a range of 7 to 10 years on the different road sections identified according to the traffic. The investment cost is taken as the net of tax cost of the improvement, rehabilitation and upgrading, sealing, as well as routine maintenance for the specific roads identified for the program, and includes procurement of the additional equipment, expansion and construction of workshops, procurement of machine/hand tools for workshops, technical assistance and operating costs. The only quantified benefits are savings in vehicle operating costs. Other benefits such as road user time savings, accident reduction, better access to social facilities and increased comfort for road users have not been quantified. 5.09 Traffic volumes on the road network were determined on the basis of traffic counts organized by the German Technical Assistance team during 1976. In all, 39 road sections have been identified for the betterment program (Table 6). The improvement program consists of 14 road sections having an ADT ranging from 60 to in excess of 300 in 1976. For the rehabilitation and upgrading (25 sections), ADT ranged from 30 to 60. Traffic during the past six years grew at an average of 10% per year; however, this rate of growth is not expected to continue and for this analysis, a traffic growth of 5% has been used during the four years of project execution after which traffic is allowed to grow at a 4% annual rate. Estimated economic rates of return are also given in Table 6 and range between 14% to over 100%. E. Sensitivity Analysis 5.10 While the project as conceived is economically sound, there are two possible risks which have been identified, and for which sensitivity tests have been performed. The first possible risk involves reduced voc savings as a result of lack of proper maintenance following the betterment work. The other possible risk identified is that project costs could escalate as a result of a serious drop in productivity during execution. Sensitivity tests were therefore conducted assuming reductions in voc savings and an increase in project costs. For the improvement program, tests reveal that large increases in costs or decreases in benefits do not result in unfavorable rates of return. For the rehabilitation and upgrading program, tests reveal that, should the costs of this component rise by 15%, the rate of return would still be 24%. If, on the other hand, voc savings were reduced by 25%, the rate of return would still yield 14%. A 12% rate of return could be main- tained even if costs of the rehabilitation and upgrading increased by 37%, while for the improvement component, costs would have to increase by more than 250% for the rate of return to fall below 12%. Similarly, benefits could be reduced by 72% and the improvement component would still maintain a 12% rate of return; benefits from the rehabilitation and upgrading could be reduced by 27% before the rate of return would fall below 12%. The con- clusion that the project earns a satisfactory economic rate of return is therefore firm. - 24 - 6. AGREEMENTS REACHED AND RECOMMENDATION 6.01 Government has agreed: (i) to follow up on steps taken to give RB the authority required for the carrying out of its responsibilities, particularly (a) to give RB authority to hire, supervise and dismiss vehicle drivers and equipment operators (para. 4.14); and (b) to simplify RB's procurement and payment procedures (para. 4.14); (ii) to fully implement by December 1978 within RB a sound cost accounting system satisfactory to the Association and to ensure that separate accounts are kept to reflect the oper- ations, resources and expenditures of RB (para. 4.14); (iii) to follow an implementation schedule and quarterly progress reporting requirements, and to prepare an evaluation report promptly after project completion (para. 4.14); and (iv) to provide a minimum of US$1.6 million equivalent every calendar year during the execution of the project, starting with the year 1979. Government also undertook to exchange views with the Association on the adequacy of these amounts by October 31 of each year, starting with 1978 (para. 4.24). 6.02 The following are conditions of Credit effectiveness: (i) Government has secured financing and other resources, in addition to the credit, on terms and conditions satisfac- tory to the Association, as shall be required for the carrying out of the project (paras. 4.11, 4.13); (ii) Government will place and maintain RB's existing Workshop and Warehouse Department under the authority of RB's Works Department as a division at the same level as the Mainte- nance Division (para. 4.14); and (iii) Government will provide not less than US$1.8 million equivalent for routine maintenance operations during 1978 (para. 4.24). 6.03 With the agreements and under the conditions outlined above, the proposed project is suitable for an IDA Credit of US$15 million to the Govern- ment of Rwanda on standard terms. February 6, 1978 TABLE 1 RWANDA APPRAIAL OF A FOURTH GHIGHWAY PROJECT Vehicle Fleet 1967-76 End Light Trucks 1/ Of Motorcycles Cars and Vans Heavy Trucks Total- 1967 na 2,353 712 537 3,602 1968 na 2,880 908 606 4,394 1969 na 3,419 1,147 708 5,274 1970 na 3,872 1,377 782 6,031 1971 na 4,343 1,753 861 6,957 1972 291 4,844 2,091 956 7,891 1973 373 5,335 2,428 1,050 8,813 1974 535 5,910 2,962 1,234 10,106 1975 749 6,560 3,584 1,444 11,588 1976 974 7,150 4,200 1,650 13,000 Annual Increase 1967-il 17% 25% 13% 18% 1971-76 10% 19% 14% 13% 1/ Excluding motorcycles. Source: Bulletins de Statistique; Mission Estimate for 1976 Date.-- February 1978 TABLE 2 RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT Fuel Consumptionl! 1971-76 Year Aviation Fuel Gasoline Diesel Oil Lamp Fuel Total RF Liters RF Liters RF Liters RF Liters Liters M llionI / Million Million Million Million Million Million Million Million 1971 3.3 .3 76.1 11.1 56.8 8.3 32.6 4.4 24.1 1972 4.3 .4 83.4 11.3 69.4 10.3 46.3 5.9 27.9 1973 4.2 .3 86.1 12.7 75.1 10.2 47.3 6.1 29.3 1974 8.0 .5 179.6 12.8 139.7 10.3 87.5 6.1 29.7 1975 5.6 .2 272.8 17.4 204.9 12.9 119.2 7.3 37.8 1976 5.4 .2 435.6 21.1 375.6 19.2 97.6 5.3 45.8 1/ Equated to imports. 2/ All costs are C.I.F. Kigali Source: Ministere des Finances et de l'Economie Service Douanier, March 1977 February 1978 TABLE 3 PRWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT Revenues From Road Users 1971-76 (RF Milil o 1971 1972 1973 1974 1975 1976 Taxes: Vehicle Licenses 8.9 10.7 12.4 16.6 21.2 27.8 Vehicle Registration 0.8 0.8 1.3 1.5 10.4 29.5 Toll Receipts 37.3 38.5 32.5 25.6 23.0 23.6 Subtotal 47.0 50.0 46.2 43.7 54.6 80.9 Import Duties: Gasoline 24.0 23.5 27.6 59.6 74.1 86.4 Diesel Oil 18.8 23.2 23.7 32.1 41.4 56.4 Spare Parts 6.5 7.9 8.2 21.5 29.3 30.1 Vehicles 32.8 33.9 30.1 64.4 109.1 90.7 Tires 7.9 7.8 7.3 18.8 32.5 30.9 Subtotal 90.0 96.3 96.9 196.4 286.4 294.5 Total (RF million) 137.0 146.3 143.1 240.1 341.0 375.4 + 7% - 2% + 68% + 42% + 10% Source: Ministere des Finances et de LEconomie, March 1977 February 1978 TABLE 4 RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT Expenditures for Roads and their Financing (1971-76) (US$ '000 equivalent) Expenditures 1971 1972 1973 1974 1975 1976 A, Capital 650 2,220 4,405 8,140 12,800 15,205 B. Recurrent 410 555 800 955 1,805 1,740 C. Total 1,060 2,775 5,205 9,095 14,605 16,945 Financing A. Capital Expenditures Foreign Financing IDA 220 950 2,365 4,575 3,290 6,790 Others 25 140 1,425 2,970 7,700 6,385 Government Financing Ordinary Budget 129 173 225 267 363 354 Development Budget 276 957 390 328 1,447 1,676 Total Capital Expenditures 650 2,220 4,405 8,140 12,800 15,205 B. Recurrent Expenditures Foreign Financing IDA - - - 90 600 680 Others - - 50 55 55 60 Government Financing Ordinary Budget 410 555 750 810 1,150 1,000 Development Budget - - - - - - Total Recurrent Expenditures 410 555 800 955 1,805 1,740 C- GRAND TOTAL 1,060 2,775 5,205 9,095 14,605 16,945 Total Revenues from Road Users1/ 1,500 1,600 1,555 2,609 3,706 4,080 1/ Revenues from Road Users are US$ equivalents of figures appearing in Table 3 Source: Mission estimates Fphir,jn:rv 1Q7R TABLE 5 RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT Road Investment Program For 1977-79: Detailed engineering of the Kigali-Ruhengeri-Cyanika road (127 km) financed by Belgium; Completion of construction and supervision of the Kigali-Gatuna (80 km) and Ruhengeri-Gisenyi (64 km) roads, both IDA projects. For 1980-83: Construction and supervision of the Kigali-Butare-Burundi border road (165 km) financed by a FED grant; Construction and supervision of the Kigali-Ruhengeri-Cyanika (127 km) road possibly financed by a Federal Republic of Germany grant. Source: Ministry of Public Works and Infrastructure Ministry of Finance, March 1977 February 1978 TABLE 6 RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT Roads Proposed for Betterment Program 3/IpGen Rate of Road Length AnT- Return (km) 1. Kicukiro-Burundi border 52 329 * 2. Gikongoro-Butare 28 193 * 3. Cyangugu-Ntendezi 20 147 * 4. Cyangugu-Ntendezi-l 11 147 * 5. Ngizyi-Gisha 27 178 * 6. Gisha-Rulindo 10 98 * 7. Ntendezi-Gikongoro 52 91 89 8. Ntendezi-Gikongoro 43 91 89 9. Gitarama-Nyakabanda - G.R. road2/ 54 86 * 10. Cyuru-Nyarubungo 37 75 61 11. Nyabisindu-Ruragwe 66 69 56.8 12. Nyabisiodu-Ruragwe1, 12 69 56.6 13. Gabiro-gayonza 58 65 54 14. Gishyita-Byumba 20 63 42 Total 490 B. Rehabilitation and _pgradiLio Rate of Road Length AnT Return (km) - 1. Nyakabanda - G.R. roacd_! 61 46 68 2. Rugerero-Ruragwe 105 43 30 3. Kibuye-Ntendezi 34 39 33 4. Kibuye-Ntendezi 1/ 66 51 33 5. Ruhango-Rugobagoba 56 30 14 6. Kibugabuga-Munyinya 42 30 14 7. Ruragwe-Kibuye 12 42 42 8. Munyinya-Gasoro 19 30 14 9. Munyinya-Kinazi 18 30 14 10. Gisha-Gishyita 8 53 63 11. Gishyita-Kirambo 37 53 62 12. Kirambo-Kidaho 41 40 27 13. Kirambo-Rukoji 26 33 20 14. Kiganda-Cyakabili 92 39 33 15. Gishyita-Byumbo 14 63 50 16. Bytunba-Mushangi 44 49 36 17. Nyarubungo-Gabiro 23 52 46 18. Nyarubungo-Ntoma 58 43 30 19. Ntoma-Kakitumba 18 52 46 20. Ntoma-Gabiro 44 49 36 21. Rwamagana-Nshili 45 46 33 22. Rwinkwavu-Ihema 30 59 52 23. Karambi-Rutovu 65 46 33 24. Karambi-Byimana 21 60 33 25. Pindura-Burundi border 33 40 27 Total 1,012 C. Sealing Road Length ADT (kmn) 1. Kigali-Kanombe 10 1,596 2. Cyangugu-Bugarama 38 174 3. Kigali-Gatuna 52 406 Total 100 1/ Different stretch of same road. 2/ Intersects Gisenyi-Ruhengeri road. 3/ End 1976. * Indicates Rate of Return > 100% Source: Ministry of Public Works and Infrastructure, March 1977 February 1978 I- to  '0 '0 V0 '0'0V O 0 '4 '0 0 '0 '0 '0 '0 '4 '4 o '4 0 0 ' 00 0o '4 '00 to0'0'000000 *  0V*'001 -- * 0 000 0'0,,0.0 * *0.'0000R'0CV'0 00.0 0 '4', 0 t00000O00000 0 --'0 00 0 0  - 0" '- ,000 000 0-''000 '00 0' 0. '0 - 4 0 0 0 0 0 00 0 0 0. * 2.20' I - -, '00 0 ' - '0 0 0 I 0. 0000 00 00 to - 00 o 0000 - 00 14 to 00 too' 0. .. - '0 - - - -  I - 000toto00 - I - 00 00 00 00 '0 to - 00 to to 00 tototoV0to 001; 0' '0 ..J'4to0000.'0to'0to '0.0 '0 '0 - - 0 0 00 to '0 '0 0 '0 to to 00 to 00 00000to0000 00 ' '0 to - - 0 to '0 0 00 00 to '0 00 00 [0 TABLE 8 RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT List of Existing Technical Assistance (through December 31, 1977) Source of Technical Assistance Number Fiancing 1. Individual Consultants in MPWI - Advisor to the Permanent Secretary 1 IDA Credit 299-RW 2. Consultants RRI, experts in the Maintenance Division 5 IDA Credit 299-RW - Advisor to the Division Chief - Foreman, responsible for routine maintenance of earth and gravel roads - Foreman in charge of rehabilitation unit - Foreman in charge of improvement unit - Accountant 3. GTZI- experts in the Workshop and Warehouse Department 4 FRG - Light Vehicles Mechanic - Trucks Mechanic - Equipment Mechanic - Warehouse Keeper 4, BTAV experts in the Workshop and Warehouse Department 1 Belgium - Mechanic responsible for vehicle and equipment bodywork 5. GTZ experts in the Planning and Engineering Department 3/ 5 FRG - Expert responsible for supervision of road construction - Expert responsible for planning road construction - Expert responsible for procurement - Expert responsible for planning and supervision of buildings' construction - Expert responsible for the street network 6. BTA experts in the Construction Section 31 1 Belgium - Expert responsible for road construction 1/ German Technical Assistance 2/ Belgian Technical Assistance 3/ Technical Assistance provided to the Planning and Engineering Department and to the Construction Section is not part of the Second Highway Project. Source: Appraisal Mission February 1978 TABLE 9 RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT 1/ List of Proposed Technical Assistance IDA 2/ UNDP 2/ FRG Belgium Total tin- US$ Man- US$ Man- US$ Man- US$ Man- US$ Months '000 Months '000 Months '000 Months '000 Months '000 1. RB Main Office Maintenance Division - I Advisor to DC 3/ 31 333 17 182 - - - - 48 515 - 1 Advisor to UCAS 4/ 31 333 17 182 - - 48 515 Subtotal 62 666 34 364 - - 96 1030 2. Field: Betterment Program Five Mechanized Units 5/ - 5 Unit Chiefs 114 1223 60 646 - - - - 174 1869 3. Field: Maintenance Program Four Mechanized Units 6/ - 2 Unit Chiefs 51 548 27 290 - - - - 78 838 4. Workshops - 1 light vehicle mechanic - 1 truck mechanic - 2 equipment mechanics - 1 mechanic for bodywork - 1 warehouse keeper Subtotal - - - - 216 2319 43 462 259 2781 TOTAL 227 2437 121 1300 216 2319 43 462 607 6518 1/ Number of man-months may vary, but total amount of funds cannot be exceeded. 2/ IDA and UNDP will jointly finance their portions of technical assistance: IDA 65% and UNDP 35% 3/ DC : Division Chief 4/ UCAS: Unit Cost Accounting Section 5/ For improvement, rehabilitation, upgrading and sealing work. 6/ Routine manual maintenance, reshaping, routine maintenance of paved roads and structures. February 1978 RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT Distribution of Technical Assistance by Category of Work 1/ IDA UNDP FiG Belgium T,otal Expatriate Staff Man- US$ Man- US$ Man- US$ Man- US$ Man- uS$ Months Thousand Months Thousand Months Thou8and Months Thousand Monthis__ThuDAf A. Improvement Work - in the Maintenance Division 2/ 15 162 7 75 - - - - 22 237 - in the field 3/ 70 751 38 408 - - - - 108 1,159 - in. the workshops2/ - _ _ _ 66 708 13 140 79 848 Subtotal 85 913 45 483 66 708 13 1A- 29§ B. Rehabilitation Work - in the Maintenance Division 5 53 2 22 - - - - 7 75 - in the field 12 129 7 75 - - - - 19 204 - in the workshops - - - - 25 269 5 53 30 322 Subtotal 17 TgE 9 97 269 3 5 3 356 60 C. Upgrading Work - in the Maintenance Division 12 128 7 75 - - - - 19 203 - in the field 35 376 18 194 - - - - 53 570 - in the workshops - __ _ _ 6 130 13 140 81 870 Subtotal 47 504 25 269 68 730 13 140 153 1,643 D. Sealing Work - in the Maintenance Division 2 22 2 22 - - - - 4 44 - in the field 12 129 6 64 - - - - 18 193 - in the workshops' - - 54 1 10 6 64 Subtotal 14 151 8 86 5 54 1 10 28 301 E. Routine Maintenance - in the Maintenance Division 13 140 7 75 - - - - 20 215 - in the field (manual maintenance)2/ 16 171 8 86 - - - 24 257 - in the field (reshaping unit) 16 172 8 86 - - - - 24 258 - in the field (maintenance of structures) 12 129 7 75 - - - - 19 204 - in the field (maintenance of paved roads) 7 75 4 43 - - - - 11 118 - in the workshops - - - - 52 558 11 119 63 677 Subtotal §4 i7 34 365 52 558 11 119 161 1.729 TOTAL 227 2,437 121 1 300 216 2,319 43 462 607 6,518 = _ = =_ 1/ All costs include physical and price contingencies. / Time spent by expatriate experts in the Maintenance Division and the Workshops has been distributed according to the requirements of the various project components, A-E. 3/ Time spent in the field by expatriate experts has been separately estimated for project components A-D; however, time spent for routine maintenance in the field is only approximately apportioned among the four activities. February 1978 TABLE 11 Page 1 of 4 RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT Project Costs Local Foreign Total I. The Betterment Program ----- US$ t0husand ------- A. Procurement of Equipment - Basic Cost /1 51 2,319 2,370 - Physical Contingencies 6 232 238 - Price Contingencies 4 105 109 Subtotal 61 2,656 2,717 B. Procurement of Machine and Hand Tools for Workshops - Basic Cost 3 135 138 - Physical Contingencies - 13 13 - Price Contingencies - 9 9 Subtotal 3 157 160 C. Construction and Expansion of Workshops - Basic Cost 145 318 463 - Physical Contingencies 14 32 46 - Price Contingencies 10 18 28 Subtotal 169 368 537 D. Technical Assistance (446 man-months) - Basic Cost 772 3,082 3,854 - Physical Contingencies 78 308 386 - Price Contingencies 108 441 549 Subtotal 958 3,831 4,789 E. Operating Costs - Basic Cost 2,758 5,682 8,440 - Physical Contingencies 275 568 843 - Price Contingencies 643 1,319 1,962 Subtotal 3,676 7,569 11,245 F. Total Betterment Program Cost - Total Basic Costs 3,729 11,536 15,265 - Total Physical Contingencies 373 1,153 1,526 - Total Price Contingencies 765 11892 2,657 Total 4K867 14,581 19,448 /1 All Basic Costs at December 1977 Prices. TABLE 1.1 Page 2 o1., RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT Project Costs Local Foreign Total II. Routine Maintence Program ----- US$ thousand A. Procurement of Equipment - Basic Cost /1 14 565 579 - Physical Contingencies 1 57 58 - Price Contingencies 1 25 26 Subtotal 16 647 663 B. Technical Assistance (161 man-months) - Basic Cost 279 1,112 1,391 - Physical Contingencies 28 111 139 - Price Contingencies 40 159 199 Subtotal 347 1,382 1,729 C. Total Routine Maintenance Cost - Basic Cost 293 1,677 1,970 - Physical Contingencies 29 168 197 - Price Contingencies 41 184 225 Total 363 2,029 2,392 /1 All Basic Costs at December 1977 Prices. TABLE 11 Page 3 of 4 RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT Project Costs Local Pore iR Total III. Training Program ----- US$ thosand ---- A. Instructors - Basic Cost /1 145 581 726 - Physical Contingencies 15 58 73 - Price Contingencies 20 83 103 Subtotal 180 722 902 B. Construction of Classrooms - Basic Cost 41 89 130 - Physical Contingencies 4 9 13 - Price Contingencies 2 5 7 Subtotal 47 103 150 C. Training Aids - Basic Cost 1 56 57 - Physical Contingencies - 6 6 - Price Contingencies - 2 2 Subtotal 1 64 65 D. Scholarships - Basic Costs - 66 66 - Physical Contingencies - 6 6 - Price Contingencies - 7 7 Subtotal - 79 79 E. Salaries of Trainees - Basic Costs 519 - 519 - Physical Contingencies 52 - 52 - Price Contingencies 60 - 60 Subtotal 631 - 631 F. Total Training Program Cost - Basic Costs 706 792 1,498 - Physical Contingencies 71 79 150 - Price Contingencies 82 97 179 Total-Training Program 859 968 1,827 IV. Total Project Cost - Basic Costs 4,728 14,005 18,733 - Physical Contingencies 473 1,400 1,873 - Price Contingencies 888 2,173 3,061 Grand Total 6,089 17,578 23,667 /1 All Basic Costs at December 1977 Prices. TABLE 11 Page 4 of 4 RWANDA APPRAISAL OF A FOURTH HIGHWAY PROJECT Project Maintenance Recurrent Costs Local F,oreign Total U.S$ thousand ------- (i) Basic Recurrent Costs 3,386 1,579 4,965 (ii) Physical Contingencies 338 158 496 (iii) Price Contingencies 831 386 1,217 Total Recurrent Costs 4,555 2,123 6,678 February 1978 APPRAI SAL OF A FOURTH HIGHWAY P003007 (i) foocoo- of e9of0ot - 2,319 2,319 - - - - - - - 51 -51 51 2.319 2.370 r Works | Depanmet l Dep.rtment | Dapartmen Supen,isi.n of Works Laboratory Warehouse Maintenance MainMtenance Ma i Brd < SWon Section S o Section 1Mainteeance Icontn IBookkaeDingIPnron |Manual Routine Maintenance Kipl Cyanuu Ruhengari Unit Mechani"ed Rehping Gitaraa Kibuye Byumba Uni | Mechanized | * * * | 0 Number oN f apatriato staff Impro-enent <7') Butar.. Gianyi Gabiro | Not financed as part of 11 Highways Project anied Improvenent 1 Gikongoro Kibungo U Mnit Source Ministry of Public Works & Infr8structure March 1977 World B.nk-17599 CIIAl 2 RWANDA FOURTH HIGHWAY PROJECT PROPOSED ORGANIZATION OF THE ROAD BRANCH IN THE MINISTRY OF PUBLIC WORKS AND INFRASTRUCTURE Wkhw -dm- id |m, P,..Nt ot l World B.nk-17S8 APPRAISAL OF A FOUTI EIGIWAY PROJECT PROJECT INPLEMENTATION SCREDULE 1977 1978 1979 1980 1981 Main Activities Responsible Authority 3 4 I 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Board Presentation Signing of Credit Agrement Effective Date of Credit ' 1. Survey of labor and equipment intensive iGovernment - Consultants __I techniques 2. Frocur_nt of equipmnt and machine and hand tools Bidding documnts ready, and reviewed by appraisal mision Bidding, evaluation and IDA approval Government, Consultants, IDA, Award of contracts and delivery Government, Consultants, Suppliers 3. Construction and expansion of workshops Lay-out and bl4dinddocutmnts ready and reviaeed by apraisal sdnsien Local bidding, *valuation, and IDA approval Government, Consultants, IDAi Award of contracts and extension of work Government, Consultants, _ Contractors 4. Technical Assistance Present Contracts Extended and Expanded TA to Maintenance Division (72 msn-months)b' Government, Consultants W_ 1 PI.,1 TA to Workshops (259 man-months) Government, Consultants - - '.40ar * 2 72m - I 72 .-u Ss TA to Betterment units (198 man-months) Government, Consultants 16 20 ____ 84____ - , __36____ TA to Maintenance units (78 man-months) Government, Consultants ;8 4m-m 4 m-t 24 -9 | - 5. Program Implementation Improvement of 500 km of gravel roads 2/ Government, Consultants 4% .16X 20% 27% 33% Rehabilitation or upgrading of 1000 km of 33, gravel and earth roads Government, Consultants : ,, 6%, 14t 211 28% 31% Sealing of 100 km of paved roads Government, Consultants I .- 2571 33% 33 Routine maintenance operationa Government, Consultants " f_om km 3500 km 3500 km 3>0 km 6. Training Program Review of training program and IDA approval Government, IDA Review of consultants' contract, bidding documents and IDA approval Government, IDA International comparative shopping for teaching aids and their delivery, Government, Consultants Award of contract and construction of classrooms Government, Consultants, Contractors Avard of consultants' contract and implementation of training program (84 man-months) Government, Consultants 12 m-m 36 m-mr 24 mvm 2 in-i I/ Man-months abbreviated as m-mr. 2/ Percentage of work done indicated. IBRD 12936R I I ~~~~~~~~~~~~~~~~~~~~~~~~~~o orr n~n0AUGUST 1977 RWANDA ! U G A Nl D A Kkumt= i FOURTH HIGHWAY PROJECT U Int Paved Roads PRIshuru Main Gravel and Earth Roads \ j V TAN 7AN IA Improvement CtT NZ7 N Rehabilitation and Upgrading REPUBLIC OF - _ Previous Bank Project Roads IC, 196-RW&CI47BVVt ZAI RE ) )N Prefecture and Commune Boundaries _/. ,- C¸Rivers ev international Boundaries / -<'- R nfi apa / A /t0r K A G E R A |~o~b~n tXgIN CN T I,NA L I nd~~~~~~~~~~~~~~ TI a Nm ci I Z. R)- hS T v Z k - : < E \V1 r u m a t-/- L C yvhnh RX, 4 Z A N I A B ~~~~B UP. UJ N D I ZAIRE Jl :,reaorelileu/itl7 v B U R U N D I ,i < 0ZG3 05 b>ortd8nlkandlosal.filrCled ~ ~~ ~ ~~~~~~ ~ ~~~~~~~~~~ 29 30 40 50 Co toT vi I \ \\ / I I _ vILFvEEe REPUBLIC OF~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~30