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Repor No. PTR-44a

This report was prepar*4 for use within the Bank and its Afliated organizations.They do not accept responsibility for its occuracy or compless. The report maynot be published nor may It be quoted as representing their views.

INTERNATIONAL BANK FOR RECONSTRUCIION AND DEVELOPMENT

INTERNATIONAL DEVELOPMENT ASSOCIATION

APPRAISAL OF

THE SIXTH HIGHWAY CONSTRUCTION PROJECT

COLOMBIA

April 28, 1970

Transportation Projects Department

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CURRENCY EQUIVALENTSs February 1970

Currency Unit - Peso (pa.)U.S. $1.00 = Ps. 18.00U.S. $1 million - Ps. 18 millionPs. 1 million - US$55,555

FISCAL YEAR

January 1 - December 31

UNITS OF WEIGHTS AND HEASURES: Metric

Metric: British/U.S. Equivalents

1 meter (m) - 3.28 feet (ft)1 kilometer (km) - 0.62 mile (mi)1 square kilometer (km2 ). 0.386 square mile (sq. mi)1 metric ton (m ton) 1.1 US short ton

- 0.98 long ton

ABBREVIATIONS USED IN THE REPORT:

ADT - Average Daily TrafficCNR - Colombian National RailroadsDANE - National Department of StatisticsINTRA - National Transport InstituteMOP - Ministry of Public WorksTAMS - Tippetts-Abbett-NkCarthy-Stratton

(Consulting Engineers, U.S.)

COLOMBIA

APPRAISAL OF SIXTH HIGHWAY PROJECT

TABLE OF CONTENTS

Page No.

SUMMARY AND CONCLUSIONS ............. ..... .,. ............ i-i

1. INTRODUCTION .. . .........

2. BACKGROUND INFORMATION.. *........... 2

A. General ............ . . . .. . 2B. The Transportation Sector .3

C. Transport Coordination. 5

3. THE HIGHWAY SECTOR ........................ 8

A. Highway Network . .8

B. Highway Administration . ........ 8

C. Highway Planning and Financing. 9D. Highway Engineering . .10

E. Highway Construction. 10F. Highway Maintenance .... .. .... ... 11

G. Characteristics and Growth of Road Traffic 11

4. THE PROJECT. .... 12

A. General Description.. ... 12

B. Bridge Construction . 12

C. Road Reconstruction and Improvement . 13

D. Consulting Services for Supervision. 13E. Cost Estimates and Financing . .14

F. Execution ..... ............... 17

5. ECONOMIC EVALUATION .. 18

A. General ... 18B. The Project Roads and Bridge. 19

6. RECOMMENDATIONS . . .21

This report was prepared by Messrs. Migliorini (engineer) and Shields (eco-

nomist) on the basis of an appraisal mission during November/December, 1969.

TABLE OF CONTENTS (Continued)

ANNEX A Bank Lending in the Colombian Transport Sector

CHART

1. Organisation of Ministry of Public Works

MAP

1. Location of Project Roads and Bridge (IBRD 2792R)

TABLES

1. National Highways by District2. Departmental Roads3. Consultants Employed in the Project4. Air Traffic 1964-19685. Imports and Exports Through Major Colombian Ports 1958-686. Sources of Revenue for 1969-72 Highway Program7. Past and Projected National Highway Expenditures8. Ministry of Public Works - Highway Design Standards9. Vehicle Registration 1958-1967

10. Motor Fuel Consumption, 1958-196811. Project Design Standards12. Paving Program13. Weighted Vehicle Operating Costs on Good Paved Road Over

Level Terrain14. Operating Cost Coefficients for Different Highway

Conditions

COLOMBIA

APPRAISAL OF THE SIXTH HIGHWAY PROJECT

SUMMARY AND CONCLUSIONS

i. The Bank has been closely associated with highway development inColombia since 1951, and the proposed loan will continue the upgrading ofthe national highway system. The project will include a major highwaybridge, the paving of 1,618 Km of highway, the construction of 9.5 Km ofhighway and consulting services for construction supervision. The comple-tion of this paving program, which will add over 30% to the existing pavednetwork (Tables 1 and 2) will provide, for the first time, paved linksbetween all the major inland cities of the country and their.respectiveports. The program will upgrade most of the heavier trafficked, presentlyunpaved, sections of the national network.

ii. The total cost of the project, including contingencies, is es-timated at US$62 million equivalent. The Bank loan of US$32.0 millionequivalent will finance the estimated foreign exchange cost of construc-tion and 50% of the cost of consultants' services. The remaining fundswill be provided by the Government. The proposed participation in con-sultants' costs entails local currency financing of about US$0.8 millionequivalent.

iii. The project will be the sixth highway project financed by theBank in Colombia since 1951. Bank/IDA financing has totalled $103.55million equivalent. The Bank has also assisted the railways in Colombia,having provided loans totalling $94.6 million equivalent over the sameperiod. The most recent highway loan was made in 1968 and is still underexecution; progress is in general satisfactory, although construction israther slower than expected. The Government has, during negotiations,given further assurances regarding reorganizing the Ministry of Works,which was initiated under the 1968 loan.

iv. Consultants (mainly local, supplemented by US firms) have beenresponsible for the detailed engineering of the project. The same consult-ants will assist the Government in prequalifying contractors, analysingbids and supervising construction. The cost estimates are consideredaccurate and adequate contingencies have been included.

v. The project is technically and economically sound. The economicrates of return for the different works range from 10% to 25%.

vi. Construction contracts have been, or will be, awarded on thebasis of international competitive bidding. Execution of the project willbe the responsibility of the Ministry of Public Works.

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vii. The possibility of imposing tolls on Barranquilla bridge traffichas been raised by the Government. The Government has agreed that, uponcompletion of the bridge, a study based on variations in rates will beundertaken to test the effect of different levels of tolls on bridge traffic.The Government will subsequently agree with the Bank on the criteria to beemployed in determining the structure and level of tolls to be charged.These criteria will be consistent with achieving the economic benefitsfrom the construction of the bridge which were forecast in the feasibilityreport.

viii. The project provides a suitable basis for a Bank loan of US$32.0million equivalent. An appropriate term for the loan would be 25 years,including a four year period of grace.

COLOMBIA

APPRAISAL OF THE SIXTH HIGHWAY PROJECT

1. INTRODUCTION

1.01 The Government of Colombia has requested a loan to help financea project (see Map) costing about US$62 million equivalent including (a)the construction of a major highway bridge, (b) the paving of 1,618 km ofnational highways, (c) the construction of 9.5 km of multi-lane highway and(d) consulting services for the supervision of the above works.

1.02 The Bank has been closely involved with the improvement of Colom-bia's transportation facilities since 1951, when it made a loan for theemergency rehabilitation of an important part of the national highway sys-tem. It has since made four other loans and IDA has made one credit forhighways, and, in all, US$103.55 million has been provided for this purposeas follows:

Loan/Credit Date Signed Amount

Loan 43-CO 1951 $16.5 million fully disbursed




Credit 5-CO 1961 $19.5 million fully disbursed

Loan 550-CO 1968 $17.2 million; $6.0 milliondisbursed as of 3/31/70

TOTAL US$103.55 million

1.03 The history of Bank lending in the transport sector is describedin Annex A. In brief, the Bank has tried to help create a viable nationalhighway system and a healthy highway administration; the former aim has toa large extent been achieved, and present investment is mainly for improvingthe network to meet increasing traffic demands. As regards the administra-tion of highways, the Ministry is in the process of reorganizing itselffollowing consultants' recommendations; this reorganization is being assistedunder the most recent highway loan (550-CO in 1968) but progress has beenuneven. During negotiations, the Government confirmed that it would continueto implement the Ministry reorganization. Progress otherwise under Loan550-CO has been satisfactory although construction was hampered somewhat bybad rains in 1969 and is a little behind schedule.

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1.04 This report was prepared by Messrs. Migliorini (Engineer) andShields (Economist) on the basis of feasibility and final engineeringstudies prepared by Colombian consultants INGETEC (in association withTAMS, U.S.), INTEGRAL (in association with Gannett, Fleming, Corddry andCarpenter, U.S.), and several other Colombian consulting firms (see Table3), and on the basis of an appraisal mission which visited Colombia inNovember/December 1969.

2. BACKGROUND

A. General

2.01 The Republic of Colombia occupies an area of more than one mil-lion km2 , roughly equivalent to that of all six members of the EuropeanEconomic CormAunity. It is bordered by Venezuela and Brazil to the east,Peru and Ecuador to the south and Panama to the northwest. It has coastson both the Caribbean Sea and the Pacific Ocean. With 21 million people,it has the third largest population in South America and the growth rateof 3.3% p.a. will shortly make it secoud to Brazil. Urban population isnow about 50% of total population and is growing much more rapidly

than the national average.

2.02 Because of its topography, with altitudes ranging from sea levelto almost 6,000 a, climate and vegetation vary widely. The greater partof both urban and rural populations is concentrated in the elevated Bogota-Cali-Medellin triangle which is about one-fifth of the country's area. Theonly other large concentrations of population occur around the Atlantic sea-ports of Cartagena and Barranquilla, where considerable industrial activityis located.

2.03 Agriculture accounts for nearly 30% of Colombia's GDP (comparedwith 37% in 1958). Manufacturing industry accounts for about 17% of totalGDP. Commerce, with 14% is the next mDst important sector. Mining, ser-vices and other activities make up the remainder. The principal mineralresource so far discovered is oil, which at present supplies 10% of thecountry's total exports as well as domestic requirements. There are alsoextensive deposits of coal, which, in the area of Paz del Rio, where ironore is also found, support a steel mill.

2.04 Colombia's GDP increased by almost 5% p.a. between 1958 and 1968,while the population grew at more than 3% during the same period. Per cap-ita income is presently estimated at about US$280. A shortage of foreignexchange persisted in the decade to 1969, due to the low level of coffeeprices in that period. Rising coffee prices during 1969 and their probablecontinuation in the near term presage an improvement in the foreign exchangesituation. The country's reliance on coffee exports has been steadily de-clining over the last decade, but this commodity still accounts for 64% of

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the total value of exports compared with 74% in 1958. There have been sub-stantial increases in other exports, notably in oil, cotton, sugar, cattle,and tobacco. The Government's present objective is to achieve a sustainedgrowth rate of about 6% in GDP. This was almost achieved in 1968, and ithas been estimated that a rate of at least 6.5% was attained in 1969.

B. Transportation Sector

2.05 The three mountain ranges of Colombia present formidable barriersto movement between the main areas of population, which until recently de-veloped as separate, almost isolated communities. The advantage of havingcoastlines on both the Atlantic and the Pacific is offset by the difficultyof movement from the coasts into the interior.

2.06 The distribution of freight traffic between modes of transport in1966, the latest year for which data are available, was as follows:

Year Rail Truck River Coastal Shipping Air Pipelines Total

1958 10% 29% 12% 7% 0.8% 41.2% 100%

1966 10% 32% 10% 7.5% 0.6% 39.7% 100%

Railways

2.07 The Colombian National Railroads (CNR) operate a network of linestotalling some 3,400 route km. The system has access to the Pacific at Buena-ventura and to the Atlantic at Santa Marta. Traffic from the other Atlan-tic ports of Cartagena and Barranquilla is transferred to the railway fromroad and water routes. The Atlantic line, financed by the Bank (Loan 199-CO)and opened in 1961, is the most important. Traffic on the main trunks aver-ages about 500,000 ton km per route km p.a. and in 1968 total traffic achieveda record 1,125 million ton-km. However, completion of some major highwayprojects, in particular the new Buenaventura-Cali highway in 1970, is ex-pected to result in substantial diversion of traffic from some routes. Pas-senger travel has been declining at 6% p.a. for several years, and the CNRis currently rationalizing its passenger services. About 260 km of apparent-ly uneconomic line are being studied for possible closure. A ten year rail-way rehabilitation program 1963-72, with partial Bank financing (Loan 551-CO)is in progress. The operating ratio for 1969 was 99 and, if pressure toincrease social benefits to railway pensioners can be staved off, financialprospects for the next few years are, generally, favorable.

Highways

2.08 Colombia has some 45,000 km of roads of which about 5,000 km arepaved, principally with asphalt. The total number of road vehicles --260,000 in 1968 -- has been increasing by about 6% p.a. in recent years,

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and trucks by about 4% p.a. This is a fairly slow rate of growth comparedwith that in other countries at a similar stage of development, thoughthere has been a slight trend towards larger vehicles, so that total truckingcapacity has consequently been expanding at a somewhat faster rate than thenumber of trucks. On the major trunk highways, truck traffic predominates.

2.09 About two-thirds of public investment in the transport sector isbeing devoted to highway construction and reconstruction. To a large ex-tent, the highway network has complemented the railway system rather thancompeted with it. As shown above, the railway's share of total traffic wasthe same in 1966 as in 1958. The provision of modern highways has resulted,nevertheless, in considerable diversion of traffic from rail to road inparticular cases. In some cases this was due to the rundown condition ofthe railway; however, on the Paz del Rio-Bogota route steel traffic formerlylost is returning to rail now that a reasonable service can be offered. Onthe other routes, particularly Bogota-Espinal-Ibague, Cali-Medellin, andCali-Buenaventura, improved road transport is likely to offer sufficientadvantages for many products to attract more traffic from the railway. Dev-elopment of communications in southern and eastern Colombia will be in theform of highways, and the Government has prepared a feeder road program tocomplement the primary and secondary highway programs now underway.

Air Services

2.10 Colombia's very difficult terrain encouraged the early develop-ment of air services for internal as well as international transportation.There are about 650 landing facilities in the country. In addition to thefour international airports at Bogota, Barranquilla, Medellin and Cali,there are some 25 other airports each handling at least 1,000 passengers amonth. Internal passenger traffic increased by 4.6% p.s. between 1964 and1968, but internal air freight movement, as shown in Table 4, is negligibleand static. In 1968, only 103,000 tons of traffic, generating 72 millionton-km, were handled. There is evidence of recent over-expansion of invest-ment in airport facilities, although selective investment (such as, atMedellin, where the present site is operationally difficult) can stillprobably be justified. In 1967, Avianca cancelled its Bogota-Popayan jetflight and the new airport at Popsyan is almost unused, because a goodroad now connects that city with Cali. Other recent improvements in sur-face transport facilities have led to a decline in air traffic on certainroutes.

Ports

2.11 About 86Z of dry cargo foreign trade is handled by the ports ofBuenaventura on the Pacific and the three Caribbean ports of Santa Marta,Barranquilla and Cartagena. The tonnages involved for the period 1958-1968 are shown in Table 5. Total exports have been growing at an averageof 5.4% p.a. while imports have in recent years been substantially lessthan in the mid 1950's, reflecting both foreign exchange difficulties and

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import substitution effects. When present additions at Buenaventura andSanta Marta are in service, the Government considers that it will haveadequate port capacity for the next ten years. There is evidence in theports, particularly Buenaventura, of inefficient practices which lead tovery slow truck turnaround time. During loan negotiations, it was agreedthat the Government would undertake a study, to be completed by mid 1971,to determine methods of improving cargo handling operations in its majorports and especially reducing the turnaround time for trucks serving theport of Buenaventura. The Government will consult with the Bank on therecommendations resulting from the study and their implementation.

River Transport

2.12 There are several navigable rivers in Colombia, but 96% of theinland shipping is on the Magdalena and most of the rest on the Cauca.River shipping is dependable in all seasons on the lower regions of theMagdalena, but upriver from Gamarra (478 km from the mouth) navigabilityis seasonal. The volume of traffic varies from year to year according tothe condition of the river, and in recent years there has been competitionfrom the Atlantic line of the railroad, over the whole haul but especiallyin the northern reaches of the river. Pipelines also provide competitionfor petroleum products, which constitute the main traffic on the river.Nevertheless, a record 2.8 million tons of river traffic was recorded in1968. Passenger traffic has suffered much more from the improvement ofroad and rail services in the Magdalena Valley. In 1956, 363,000 passengerswere carried on the river. In 1966, the last year of record, only 7,000travelled by this mode.

Pipelines

2.13 Petroleum products, Colombia's second largest export earner af-ter coffee, are mainly transported by pipeline. From the oilfields locatednear Barrancabermeja, crude oil pipelines supply five refineries, includingone at Cartagena, whence- refined products are shipped via the Panama Canalto Buenaventura for distribution to western Colombia. The new Caldas linefrom Dorada to the Manizales area may affect this distribution pattern.Another line supplies crude oil to Santa Marta for export. Refined prod-ucts are also moved by pipeline from refineries to Bogota and Medellin,and from Buenaventura to the Cauca Valley. The Trans-Andean pipeline fromthe Orito field in Putumayo to the Pacific port of Tumaco was put intooperation early in 1969. It was expected, within a year, to carry 100,000(and ultimately 150,000) barrels per day, reversing a drop in Colombianexports of crude which fell from 31.1 m barrels in 1967 to 18.5 m in 1968.

C. Transport Coordination

2.14 Responsibility for the administration of the transport system isdivided among a number of agencies and decentralised organizations. TheMinistry of Public Works is responsible for the national highway system andfinances the construction and maintenance of national roads through the Na-tional Highway Fund. The Ministry is also responsible for the National

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Feeder Road Fund, although local Government bodies also contribute to this.The National Transport Institute (INTRA), created in 1968, is responsiblefor regulatory policy and its execution. Port construction and operationare the responsibility of the National Port Authority (COLPUERTOS). Transporton the Magdalena River is controlled by the National Shipowners Association(ADENAVI), which is responsible for maintenance and improvement of the river,most river ports and the Canal del Dique which runs between the port ofCartagena and the Magdalena. The National Shipping Company (NAVENAL) operateson the rivers in the eastern part of the country and on the Amazon. TheColombian National Railroads (CNR) are responsible for all railroads.

2.15 Decree No. 3160 of 1966 was an attempt to tie in the various en-tities responsible for transport with the Ministry of Public Works. How-ever, although the Minister is an ex-officio member of the boards of theseagencies, there is no central coordination of the different modes, exceptthrough the Government's central planning department, Planeacion Nacional.Recently the responsibility for airport construction and operation wasremoved from the nominal control of the MOP and the Departamento Admininis-trativo de Aeronautica Civil (D.A.A.C.) was reconstituted as a separateentity.

2.16 In spite of the looseness of the coordinating machinery, majormistakes in investment planning have been avoided. The Government is awarethat problems such as labour productivity and utilization of existing equip-ment are more serious than lack of capacity, especially in ports. In thecurrent 1969-1972 investment plan, the need is acknowledged for studiesprior to investing in extensions or improvements, particularly where thereis close modal competition. INTRA and the recently established Highw-yPlanning Office in the MOP should also contribute to improved coordination.Work is continuing on the development of a model to compare the systemeffects of alternative transport investment programs. This is a cooperativeeffort between the Planning Office, MOP, the University of Los Andes and theBank, and it is hoped to have the model operative in Colombia in 1971.

2.17 In 1966, when the National Road Fund was established and new advalorem gasoline and diesel taxes were introduced, road users were paying,in the form of these taxes, about 50% of the Government's national roadexpenditures. However, from 1970, due to the combined effects of inflation,failure to adjust the exchange rate applicable to payments to petroleumcompanies, and a greatly increased highway program, the contribution ofthese taxes to the highway account will be only 30% to 35% of total antici-pated expenditures on highway construction and maintenance.

2.18 The current pump price of gasoline, at US 15¢ equivalent pergallon, is probably the cheapest in the world. This low price for gasolineis possible because of the artificial exchange rate applicable to paymentsto petroleum companies for crude oil refined for domestic consumption. Thisrate has been fixed at nine pesos to the dollar since 1962, although the

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current market exchange rate is about eighteen to the dollar. Thus, thereis a direct government subsidy to highway users, which in 1969 was about307 million pesos. Moreover, since both gasoline and diesel excise taxesare on an ad valorem basis, the yield is about 60% of what it would be ifthe ex-refinery price of gasoline reflected a proper market price for crudeoil. If the exchange rate is unified, as the Government has indicated itintends, road users would be paying for between 60% and 70% of the annualoutlays on national highways by 1972.

2^19 The unification of the petroleum exchange rate clearly has impli-cations for the Government's fiscal strategy as a whole, as well as for thetransport sector. Furthermore, the CNR has been trying to rationalize itsrailway operations, both by physical improvements and a flexible pricingpolicy; these efforts are undermined by the subsidy of road transport.

2.20 As part of its policy for simplifying its foreign exchange system,the Government has studied suitable methods for the adjustment of the crudepetroleum exchange rate with a view to its unification with the market rateover two or three years. A change in the rate to 17.0 pesos to the US dollarwould raise ton km rates for truck transport by less than 9%. Ajustment ofthe rate would probably be gradual; below, a comparison is made of estimatedrevenues from the gasoline and diesel taxes with and without the proposedchanges if carried out in three steps by 1972:

Revenue No Revenue with SubsidyMarket Change (in Petroleum Change (in To Central Bank

Exchange million Exchange million Foreign Exchange A/CYear Rate pesos) Rate pesos) (in million pesos)

1969 17.5 693 9.00 693 307

1970 18.8 806 13.30 970 168

1971 20.10 855 17.60 1185 78

1972 21.30 904 21.30 1412

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3. THE HIGHWAY SECTOR

A. Highway Network

3.01 Colombia has a road network totalling about 45,000 km in length,of which about 19,000 km form the national highway system, a further 19,000km are departmental, and the balance are municipal (linking towns with out-lying communities and farms) and private (such as to oil concessions). Thedepartmental system includes about 3,000 km of "caminos vecinales", whichare low standard feeder roads built under a national program started in1960; materials and labor for these are furnished by the local community as-sisted financially and technically by the departmental and central author-ities. About 20% of the national system is paved, against less than 5% ofthe departmental roads (Tables 1 and 2). The national highway network overthe years 1962 to 1969 has increased from 16,500 km to about 19,000 km.

3.02 Due to the difficult terrain (which leads to high constructioncosts) and to the isolation and traditional independence of the various re-gional centers, only in the last two decades has there been any real effortto link the main population and economic centers of the country by goodroads.

3.03 The national highway system includes the basic trunk networkwhich connects the main centers of population and a number of secondaryroads linking the smaller towns to the primary network, as well as someminor roads of at present purely local importance, but which may in fu-ture form part of new long distance routes.

B. Highway Administration

3.04 The MOP is responsible for planning, constructing and maintainingthe national highway network. The Minister also has separate but more ten-uous responsibilities through semi-autonomous agencies for railways, rivertransport, ports, INTRA and for technical advice on the construction offeeder roads. The national highway system accounts for about 90% of MOP'sefforts and expenditures. MDP's organization is shown in Chart No. 1.

3.05 Since efforts to create a modern transport system started in theearly 1950's, limitations have been imposed by organizational difficultieswithin the MOP which operated with archaic procedures and systems. Sinceit first became involved with highways in Colombia, the Bank has encouragedthe modernizing of the highway organization, and in 1966, the Governmentengaged management consultants to review the Ministry's operations, to makerecommendations for improvement and, subsequently, to help implement theserecommendations. The consultants appointed were COMEC (Mexico) in jointventure with Frederick R. Harris (U.S.). The contract expired at the endof December 1969, but COMEC experts are continuing to advise in the organi-zation of highway maintenance. The implementation phase is, however, still

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in progress. Progress has been achieved in almost all the Ministry'sactivities, and particularly in maintenance, but not in all cases at thepace which the Government had foreseen at the time the Fifth Highway Loan(550-CO) was made. The main reason for this has been the difficulty ofrecrutting sufficient staff of high calibre, government salaries generallybeing unattractive and not competitive with the private sector. Duringnegot.ations, the Bank reviewed progress on the reorganization program withthe o-ernment which reaffirmed its intention to reorganize the Ministryand indicated its plans for certain key areas where progress has lagged --speclfi:d21y, in personnel administration, organization of the Design Divi-sion, and improverient of workshops, equipment maintenance and spare partsprocurement.

C. !Llgz_ lani and Financing

3.06 The management consultants helped MOP to inventory the nationalhighway system. About 7,000 km have so far been covered, and it is ex-pecteui that the inventory will be completed during 1970; it will facilitatefuture highway pianning and operations, and help to establish the basisfor classifying roads. The first national traffic census was conducted inl968; the results were used together with the inventory and field inspec-tions and some additional counts to plan the highway paving program whichis part of the present project. The analysis of similar traffic countsfor 1969 is in progress, and counts will be continued on an annual basis.Confirmation that the Government will continue to collect data needed forhighway operations and planning was obtained during negotiations.

3.07 In the past, highway projects undertaken by MOP were numerousand often overly ambitious. As a result, many were never completed. The-- Licy of the last four years has been to curtail expenditure on less ec-onomic improvements and to concentrate on completing projects alreadybegun. Funds for further feasibility studies to prepare a pipeline ofeconomically attractive projects were provided in Loan 550-CO but have notyet been committed, as a study program has not yet been agreed upon and,therefore, no additional provision for this purpose is made in this project.The Government has proposed a list of highway studies and these are present-ly under review by the Bank.

3.08 One of the main causes of poor performance on earlier highwayprojects was the inadequate provision of local funds by the Governmentfor ambitious road programs; this not only forced construction contrac-tors to gear their output to known availability of funds, but led direct-ly to the financial failure of some firms. The establishment of the Na-tional Highway Fund at the end of 1966 provided a more assured source offinancing for highway works. However, greater dependence will in futurebe placed on the general budget contribution, because, unless the petroleumexchan-e rate is reformed (para. 2.18), revenues to the Fund from fuel taxeswill fall short by between 1,300 m. pesos and 1,600 m. pesos p.a. between1970 and 1973 (Table 6). Table 7 shows recent and projected expenditureson the national highway system.

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D. Highway Engineering

3.09 The standards for new highway construction introduced in 1967are shown in Table 8. Although these were used as the basis for design,not all the roads in the paving program will be improved to the full stand-ards since the roads to be paved already exist and upgrading to meet stand-ards for new construction would in some cases be uneconomical or impracti-cable because of difficult terrain (para. 4.05).

3.10 In Colombia, pavements have frequently been overdesigned toovercome deficiencies in drainage. However, MOP is being assisted byan expert from the Road Research Laboratory (UK), whose main task isto review and advise on pavement design in the country. The servicesof this expert are being partially financed from Loan 550-CO.

3.11 Although many of its personnel are competent, the Ministry haslimited design capacity and uses consultants for this purpose. While re-organization of the Ministry could increase its engineering capabilityand thus enable some design to be undertaken directly, it will continue tobe necessary to use consultants for much of its design work.

3.12 Consultants have frequently been engaged by Government on con-tracts written in very general terms which can result in high engineeringcosts. Under the proposed project, tighter contracting arrangements arebeing made which will simplify administration, improve control of consult-ants and keep costs at reasonable levels.

3.13 The consulting profession is now well established in Colombia,and there are a number of large and capable Colombian engineering firms,some of which have developed as a result of their participation in Bank-financed projects in highways, power supply and other fields.

E. Highway Construction

3.14 Modern methods of highway construction were first introduced inColombia in the early 1950's, when experienced foreign contractors wereemployed on the first Bank highway project. Mountainous terrain and cor-responding heavy earth moving led to extensive use of heavy equipment whichhad not previously been operated to any extent in Colombia. There are nowseveral local firms capable of undertaking contracts worth US$4 to $5 mequivalent, and many smaller firms. In the current Loan 550-CO, all roadconstruction is being carried out by Colombian contractors. However, theColombian contracting industry may be strained to handle the new projecttogether with othgoing work and additional projects likely to start in theforthcoming fiscal year, and foreign contractors should have more opportunityto participate.

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3.15 Construction equipment for works financed by foreign loans can beimported free of duty, provided a financial guarantee is given that it willbe re-exported immediately after completion of the work. The Governmenthas agreed to facilitate the licensing of imports of equipment needed forthe project.

3.16 Major highway construction is now almost invariably carried outunder unit price contracts let after competitive bidding. Delays formerlyexperienced in legalizing contracts have been overcome; contracts can nowbecome effective within thirty days of award, The Government agreed duringnegotiations that foreign contractors would have the right to obtain theforeign exchange necessary for their operations.

F. Highway Maintenance

3.17 The quality of maintenance work on the national highway systemwas in the past uneven; central control was loose and results were depend-ent on the interest and ability of individual district engineers. Theactivity of the maintenance division was mainly geared to the reconstruc-tion of pavements which had deteriorated because of deferred maintenance;the introduction of extensive routine maintenance has taken place onlyrecently. In more recent years, however, many improvements have been made(Annex A). Management consultants helped to establish a pilot program inone of the maintenance districts which has already yielded considerablebenefits, and the results of this program are being extended now to otherdistricts. Accounting controls have been established, standard maintenanceprocedures have been introduced, and routine maintenance is now plannedcentrally on an annual basis.

3.18 Most districts have now been staffed with mechanical engineers,and workshop facilities are being slowly improved; however, much moreremains to be done to improve equipment maintenance and COMEC experts arenow advising the Ministry on this. The Ministry is using the proceeds ofUS and British credits to procure highway equipment worth US$21 m equivalent,which should more than meet the needs of maintenance.

3.19 During loan negotiations, the Government confirmed that it willmaintain the national highway system properly.

G. Characteristics and Growth of Road Traffic

3.20 The road vehicle fleet grew at an average annual rate of 5.6%p.a. between 1958 and 1967 (Table 9). The number of trucks increased ata lower rate of about 4%, with trucks of less than 3 ton capacity increas-ing at 8% and heavier trucks at 3.2% p.a. There is evidence of a trend to-wards heavier trucks, but the effect on the total truck fleet is not verysignificant. The statistics show somewhat quicker growth for motor fuelconsumption than vehicle registrations; 6.6% annually for gasoline and 7.2%for diesel (Table 10). The increased motor fuel taxes introduced in 1966had no discernible effect on fuel consumption. Fleet growth has been

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largely limited by import restrictions. The motor industry is limited toassembly of cars, buses and trucks, but plans for manufacture are now beingdiscussed with foreign interests.

3.21 A draft law on vehicle weights and dimensions has just been pre-pared to replace Law No. 0102 of 1955, but the maximum allowable axle loadsare unchanged, i.e., 8.2 m tons for single axles and 14.5 m tons for tandemaxles. All trucks will be required to carry a certificate issued by INTRAdescribing their dimensions. The proposed law is acceptable and the prob-lem, as with the existing law, will be enforcement. About 95% of trucksare still single-axle vehicles, and overloading is common. The governmenthas banned the import of trucks with dimensions and axle load capacitiesabove legal limits and has indicated that it will not license replacementof engines for such trucks imported during an earlier period of lax en-forcement of loading standards. INTRA has recently introduced highwaypatrols to enforce compliance with the law. The steps are generally inaccordance with those agreed with the Government in 1968. During loannegotiations the Government reaffirmed its intention to ensure that vehicleweight and dimensions will be properly regulated on national highways.

4. THE PROJECT

A. General Description

4.01 The proposed project consists of:

(i) The construction of a major bridge across theriver Magdalena at Barranquilla;

(ii) The reconstruction to higher standards of 9.5km of highway between El Pailon and Buenaven-tura on the Buga-Buenaventura highway;

(iii) The paving of 1618 km of primary and secondaryhighway; and

(iv) Supervision by consultants of (i), (ii), and(iii) above.

B. Bridge Construction

Barranquilla Bridge

4.02 This bridge will replace the ferry service across the Magdalena(the largest river in Colombia) on the highway between Barranquilla andSanta Marta. This is part of the Trans-Caribbean highway, the easternsection of which is currently being constructed with assistance from IDB.

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The basic design for the bridge was of steel on steel piling, but it is nowproposed to award the construction contract for an alternative design inprestressed concrete on cast-in-place concrete piles. The length will beabout 1499 m with access ramps of 1014 a and 1335 m connecting the structureto the existing highway system. The main span of the bridge will be 140 mand will have a vertical clearance of 16 m to permit river navigation. Thedesign standards are shown in Table 11.

C. Road Reconstruction and Improvement

El Pailon - Buenaventura Road

4.03 This 9.5 km road is the last section of the new highway connectingBuenaventura, the main port of the country, with its hinterland. The Bankunder Loan 550-CO is financing the completion of the eastern portion of thishighway, which is expected to be open to traffic in 1971. The road fromEl Pailon to Buenaventura crosses a thickly populated area, and the improvedalignment selected is the only technically feasible solution because theport and town of Buenaventura can be reached only along a natural isthmusthrough mangrove swamps.

4.04 The improvement will be to a two-lane paved highway with an em-bankment sufficient in width to permit the provision of two additional lanesin the future when required (possibly 1982) and for widening the existingEl Pinal bridge from 6.1 m to 7.9 m. Design standards are in Table 11.

Paving Program

4.05 This program covers 1618 km of national primary and secondaryhighways. In addition to paving and drainage the works include upgrading(where this is desirable and economically justified). Improved drainagewill constitute a primary component of the program as lack of proper drain-age is a major cause of pavement failure in Colombia.

4.06 The 48 sections contained in the paving program, and the antici-pated 1970 traffic volumes and design standards, are in Table 12.

D. Consulting Services for Supervision

4.07 A list of the consultants who will be employed on supervision isgiven in Table 3. In all cases they are the firms which earlier carriedout the detailed engineering.

For Barranquilla Bridge

4.08 The feasibility study for this project was carried out byINGETEC/TAMS, financed from Credit 5-CO. The bridge siting and layoutwere agreed with the consultants to the Ports Authority on river pro-blems affecting port operation (Sir Alexander Gibb, U.K.) and with the

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French advisers to MOP on hydraulics and river training. INGETEC/TAMS alsoprepared the basic design and the bidding documents, have evaluated bids,and will supervise construction. The alternative bridge design submittedby the successful bidder was made by Professor Morandi (Italy); it hasbeen reviewed by INGETEC/TAMS and found acceptable.

For El Pailon-Buenaventura

4.09 The engineering for this project was prepared by INTEGRAL/GannettFlemming, Corddry and Carpenter, who had also did the feasibility study.MOP intends to retain these firms for supervision, and this is acceptable.

For the Paving Program

4.10 The engineering for this program was prepared by seven local con-sultants (see Table 3). INGETEC/TAMS acted as coordinating consultants andprepared the feasibility study for the whole program. It is proposed toretain the services of the same consultants for supervision of construction,and INGETEC/TAMS will continue to coordinate the work of the other consul-tants in harness with MOP staff and its advisors, in particular the pavingexpert provided by the U.K. Road Research Laboratory.

E. Cost Estimates and Financing

4.11 The total cost of the project is estimated at US$62.4 m equival-ent, including allowances for quantity and price escalation. A summaryfollows:

SUHMARY OF PROJECT COSTS(December 1969 Prices)

Colombian Pesos US$ Equivalent Bank Participation(Million) (Million) US lion

Local Foreign Totaal ooreign Tta Equivalent

CONSTRUCTION, RECONSTRUCTIONAND PAVING

a. Barranquilla Bridge 61.0 86.C 147.0 3.4 4.8 8.2 4.8 (5B %)

b. El Pailon-Buenaventura Road 20.0 20.0 40.0 1.1 1.1 2.2 1.1 (50%)

c. Paving Program 353.8 353.8 707.6 19.7 19.6 39.3 19.6 (50%)

d. Quantity Contingencies (10%) 45.0 47.0 92.0 2.5 2.6 5.1 2.6 (51%)

e. Price Escalation (7%) 36.o 378 73.8 2.0 2.1 4.1 2.1 (51%)

TOTAL, Item 1 515.8 544.6 1,060.4 28.7 30.2 58.9 30.2

CONSULTANTS FOR SUPERVISIONOF 1

a. Barranquilla Bridge 3.6 7.2 10.8 0,.2 0.4 0.6 0.3 (50%)

E E1 Pailon-Buenaventura Road 1.8 0.4 2.2 0.1 0.02 0.12 o.o6 (50%)

C Paving Program 36.0 9.0 45.0 2.0 0.5 2.5 1.25 (50o)

d. Contingencies (10%) 3.6 1.8 5.4 0.2 0.1 0.3 0.15 (50%)

TOTAL, Item 2 45.0 18.4 63.k 2.5 1.0 3.5 1.8

TOTAL 560.8 563.0 1,123.5 31.2 31.2 62.4 32.0

NOTE: Rounded TotalsThe exchange rate used in this Table is

18 Colombian pesos to US$1.00.

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4.12 The coat estimate for the Barranquilla Bridge is based on bidsreceived. The cost estimates of the El Pailon-Buenaventura highway byINTEGRAL/Gannett, Fleming, Corddry and Carpenter, were confirmed duringnegotiations, when detailed engineering was nearly completed. Costestimates for the paving program were based on detailed engineering andwere confirmed during negotiations.

4.13 A 10% contingency item has been provided in the cost estimatefor possible quantity increases. This is considered reasonable in viewof the advanced stage of engineering.

4.14 About 7-1/2% has been allowed for global price increases duringthe course of the project. Local cost increases will be accommodated byan acceptable escalation formula, and it is assumed that adjustments inthe foreign exchange rate of the peso will reflect changes in the relativepurchasing power of domestic and foreign currencies.

4.15 The cost of consulting services has been estimated on the pro-bable number of man-months required, applying average local and foreignman-month rates. A contingency allowance of 10% has been added to theestimated cost of these services.

4.16 The loan will finance the foreign exchange component of constructioncost, estimated as follows:

(i) 58% for Barranquilla Bridge; and

(ii) 50% for El Pailon-Buenaventura and the Paving Programon the basis that the foreign exchange component wouldapproach 44% if all works are carried out by local con-tractors and about 58% if they were to be carried outentirely by foreign contractors. On the assumptionthat about one-third of the works would be awarded toforeign contractors, the foreign exchange componentwould be about 50%.

4.17 It is proposed that the loan will finance 50% of the cost of con-sulting services. The supervision of the program will be largely undertakenby Colombian firms. The Bank should encourage the use of capable local con-sultants where these exist, as in Colombia, and should be prepared to financea substantial part of the cost, as would have been the case if foreign con-sultants were employed. It is therefore proposed that the loan will financeall consultants in about the same proportion as that applied to the construc-tion works. This will entail local currency financing of the order of US$0.8million equivalent.

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4.18 On the basis of the construction schedule, the tentative annualbreakdown of expenditures between the Government and the Bank is as follows:

(US$ Million Equivalent)

Total Government Share Bank Share

1970 7.9 3.9 4.0

1971 20.5 10.0 10.5

1972 22.4 10.9 11.5

1973 11.6 5.6 6.0

TOTAL 62.4 30.4 32.0

It is possible that contracts for the bridge and some of the paving workswill be signed prior to loan signature (expected to be at the beginningof June 1970) but no expenditures are likely to be incurred before thattime. Some expenditures are, however, expected to be incurred prior toloan signature in respect of consulting services connected with bidding,but these will be small, and no provision is made in the loan for retro-active financing. It is proposed that any surplus remaining in the loanaccount on completion of the project will be cancelled.

4.19 Adequate local funds will be made available through the NationalHighway Fund (supported as necessary by budgetary allocations) for theexecution of the project. It was agreed during loan negotiations that theBank would review the annual budget of the Fund and receive periodicstatements indicating the status of the allocations made for the individualitems to be financed by the loan.

F. Execution

4.20 The executing agency would be the MOP assisted by consultants.The Government has negotiated draft contracts with the supervisory consult-ants along the lines indicated in para. 3.12. These have been reviewedand found satisfactory. The conclusion of these contracts will be a con-dition for effectiveness of the loan.

4.21 The construction period will be about 30 months for the Barran-quilla Bridge, 24 months for the El Pailon-Buenaventura road, and about40 months for the paving program. For bid purposes, the 48 sections ofroads comprising the paving program have been grouped into 13 packages(Table 12). These packages have been selected on the basis of geographicalproximity and are of a size to make them attractive to both local andforeign contractors; six contracts will be between US$1 and 2 million,five between $2 and 4 million, and two over $8 million.

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4.22 International competitive bidding (permitting submission ofbids for alternative designs) has been held for the Barranquilla Bridge;the consultants have recommended award to the lowest evaluated bidder(Lodigiani of Italy, in association with Cuellar Serano Gomez of Colombia).The Government and the Bank agree with the recommendation and a contractshould be signed in May 1970 and work should start in July. Prequalificationhas been completed for the paving program -- eleven foreign firms were pre-qualified - and bids have been received for the first stage of the program.It is planned that all paving contracts will be started by July/August 1970.Bids for El Pailon-Buenaventura will be invited by mid-1970.

5. ECONOMIC EVALUATION

A. General

5.01 The initial selection of road sections for the paving programwas made after a study of the results of the 1968 MOP traffic census. Someroad sections with low traffic volumes were studied further because theirpaving was expected to attract substantial traffic from other, longer routes.The Barranquilla Bridge and the El Pailon-Buenaventura highway were pro-posed for construction because present and prospective traffic volumes atthese locations are leading to congestion.

5.02 The project works are expected to reduce costs of transport bylowering vehicle operating and time costs, shortening travel distancesand eliminating some serious bottlenecks. As a basis for estimating be-nefits, the coordinating consultant (INGETEC/TAMS) prepared estimates ofvehicle operating costs in Colombia which are shown in Tables 13 and 14.In general, their use indicates that road user savings resulting from thepaving of highways in Colombia are about 30 percent, and this is in accordwith Bank experience elsewhere. When the paving leads to the attainment ofa long, continuously paved route, for example between Bogota and the Carib-bean Coast, there will be other potential savings in inventory costs, vehicleutilization and rationalization of service, which cannot as yet be quantified.These systems effects would make some of the sections in the paving programmore attractive than the calculated rates of return indicate.

5.03 The forecasts of traffic increase used in economic analysis rangedfrom 3 percent to 7 percent p.a. and were based on the consultants' studyof growth in regional vehicle registration rates. For the BarranquillaBridge, the consultants forecast that traffic will rise by 9 percent p.a.between 1973 and 1980, and then the rate of increase will decline graduallyto 5 percent p.a. in 1994. This appears reasonable. Only in the case ofBarranquilla Bridge is an estimate made of traffic generated by the im-provement. Actual traffic growth in Colombia will be closely linked tovehicle import policy since current utilization rates of all types of

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vehicles are high. With improved balance of payments prospects it appearsprobable that future growth will, if anything, be higher than recent his-torical growth rates.

B. The Project Roads and Bridge

(i) Barranquilla Bridge

5.04 This bridge will replace an existing ferry service maintainedpartly by the Colombian National Railroad and partly by the MOP. The be-nefits from the bridge are attributed to the net differences between thevalue of vehicle and comercial driver time spent to cross the river viathe bridge and via the ferry and between imputed operating costs, includ-ing stops and starts, incurred in crossing by the two modes. The valueof passenger time was not included in the analysis.

5.05 Current traffic using the ferry system is about 1,000 vehiclesper day of which 50% are commercial vehicles. A study by consultants(INGETEC/TAMS) forecasts that constraints of ramp availability and streamnavigation would impose a limit of 1560 vehicles per day on the ferryoperation by 1984. The bridge will remove the physical constraint ontraffic growth and a great deal of generated traffic will be induced touse the crossing for both short and long journeys. The east bank of theMagdalena is today virtually undeveloped, and it is anticipated that portrelated activity and the development of the nearby Salamanca island forboth tourist and industrial purposes would be stimulated by the new facil-ity. The three ferries currently in use will be transferred to otherlocations on the Magdalena to improve transversal connections in theinterior of the country.

5.06 Traffic is forecast to rise from 2,675 vehicles per day in 1973,after the bridge is opened, to 5,920 vehicles per day in 1984 and 10,450in 1990. This development depends upon the following assumptions or pre-conditions:

1) Completion of La Ye-Santa Marta-Rioacha-ParaguachonHighway to the Venezuelan border;

2) Completion of relocation of 100 km of Santa Marta-Bucaramanga-Bogota, highway between Las Pavas andSan Roque and the paving of other sections;

3) Exploitation of the tourist potential of IslaSalamanca and the Santa Marta area;

- 20 -

4) Expansion of port activities in Barranquilla andextension of port related activity to the eastbank of the Magdalena; and

5) Continued growth of cattle and cotton production inthe Departments of Magdalena and Cesar.

All the above are currently funded, programed or at a sufficientlyadvanced stage of planning (with the exception of the industrial andport development on the east bank of the river) to make their realizationprobable within the forecast period. When the paving program in thecurrent project is completed, the journey between Bogota and the Caribbeancoast can be made completely over paved highways. There is, however, astretch of about 70 km between La Ye and Fundacion which may require bothrealignment and repaving. This might be considered for a future. loan.

5.07 Based on the consultant's traffic forecasts and assumed percent-age of trucks, buses and cars, the investment in the bridge would have aninternal rate of return over a 20 year economic life (i.e. the period overwhich analysis is meaningful) of 17%. Using more conservative estimates,an internal rate of return of between 13% and 14% would be obtained.

5.08 The Government is considering charging tolls on the bridge butthe level of these tolls has not been decided. The Government agreedduring negotiations that it would undertake a study over the first yearthe bridge is open to test the effect on bridge traffic of varying thetolls, and will base the criteria for determining the structure and levelof tolls to be charged on the results of this study. It has been agreedthat tolls would be levied in a manner consistent with achieving theeconomic benefit forecast in the consultant's feasibility report. Receiptsfrom tolls would be credited to the National Highway Fund.

(ii) El Pailon-Buenaventura Highway

5.09 The Buenaventura-Buga highway has been under construction forover 20 years. Its completion (expected in 1971) to El Pailon, where itjoins the existing Buenaventura-Cali road, is at present being financedunder Loan 550-CO. Between El Pailon and Buenaventura port there is atpresent an unpaved road which is unsuitable for present traffic, whichranges from 2,000 vehicles per day at one end, where it is predominantlylong distance, to 4,000 near the port, where there is a great deal oflocal traffic. When the Buga-El Pailon road is open to traffic, someincrease in highway traffic at the expense of the railway is expected,although no definitive study has been made of this.

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5.10 The earlier reconstruction of the El Pailon-Buenaventura sectionwas delayed because of uncertainty about the standards to which this roadshould be built and also to protracted discussions between the port, railwayand highway authorities on what bridge, railway and public utility reloca-tion might be required and whose responsibility it should be. The consul-tants, INTEGRAL/Gannett, Fleming, Corddry and Carpenter, have recommendedprovision of a highway graded for four lanes, but with only two lanespaved. The additional paving would be undertaken when traffic warrantedand, for purposes of economic analysis, this was assumed to be in 1982.The government has confirmed that the port and railroad authorities are inagreement with the recommended solution;

5.11 The economic benefits considered were road user savings resultingfrom the improved geometric and surface conditions of the reconstructedroad, together with savings from reductions in congestion due to frequentstops and starts. Relocation of the railway line and the construction of anew railway bridge is unnecessary at present, but might be undertaken later,perhaps when the four lane pavement is provided, with no disruption toexisting highway traffic. With a conservative traffic increase forecast of6% p.a., the investment would yield an internal rate of return of 11.8%which is acceptable. There would be additional, unmeasured, amenity bene-fits to the people living along the road.

(iii) The Paving Program

5.12 The roads selected for the paving program have 1970 traffic vol-umes ranging from 220 to 1,460 vehicles per day. Because some of the im-provements consist only of paving with little or no geometric improvements,the economic analysis was restricted to a 10 year life. If traffic growthon these roads in the next 10 years is higher than anticipated, a more rad-ical form of improvement including widening and realignment, will then beadvisable. Other roads are carrying sufficient traffic to warrant morethan paving, and still others, while presently carrying fairly lowvolumes of traffic, are on trunk roads expected to carry heavy traffic inthe near future; in such cases the improvements will be up to full trunkroad standards. On the last two categories of road, a 20 year economiclife was assumed and the rate of return calculated accordingly; the roadsconcerned are indicated in Table 12. On almost all sections, the firstyear benefit exceeds 10%, which means that the traffic forecast is notcritical.

6. RECOMMENDATIONS

6.01 During negotiations, agreement was reached with the Governmenton the following principal points:

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(i) a study of truck turnaround time at Buenaventuraport (para. 2.11);

(ii) the reorganization of the MOP (para. 3.05);

(iii) the facilitation of import licenses for contractors'equipment (para. 3.15);

(iv) the ability of foreign contractors to obtain foreignexchange needed for their operations (para. 3.16);and

(v) a study of the effects of varying tolls on trafficon Barranquilla Bridge (para. 5.08).

6.02 The drafts of contracts negotiated with supervisory consultantshave been reviewed and found satisfactory. A condition for loan effective-ness will be that consultants have been employed accordingly.

6.03 The proposed project is suitable for a Bank Loan of $32.0 mil-lion. A term of 25 years, including a grace period of four years, wouldbe appropriate.

April 28, 1970

ANNEX A

BANK LENDING IN THE COLOMBIAN TRANSPORT SECTOR

1. The Bank has been closely involved with the improvement of Colom-bia's transport facilities since 1951, when it first made a loan. It hassince made four other loans and IDA has given one credit for highways. Al-together, $103.55 million has been provided for this purpose.

2. The first loan (43-CO) was for the emergency rehabilitation ofsome 3,000 km of the most important trunk roads - basically to establish acontinuous all-weather main road system. The program was highly ambitious,and the difficulties which were to be encountered in carrying it out (cli-matic, geophysical, personnel and institutional) were seriously under-esti-mated. With rudimentary engineering and project preparation, constructioncosts increased drastically and work progressed very slowly. The secondand third loans (84-CO and 144-CO) were made to enable the original programto be continued and amplified by the addition of other important roads.The originial construction standards were also improved in several cases..

3. The fourth project (Loan 295-CO and Credit 5-CO) was for the com-pletion of certain parts of the original project (still unfinished afterten years), the const-ruction of another 450 km of road and the upgrading ofother roads (many of which had been constructed originally to relativelylow standards under the earlier loans) to meet the requirements of the rap-idly increasing traffic volumes. This project also provided funds for pur-chasing a large fleet of maintenance equipment in recognition of the needto improve highway maintenance practices. In 1965, as a condition for ex-tending the Closing Date of the loan and credit, the Government agreed toemploy management consultants to reorganize the Ministry of Public Works(1OP).

4. The fifth project (550-CO) was for (a) the construction or recon-struction (with paving) of about 510 km of four national highways, (b) theconstruction of a major highway bridge, (c) consulting services for supervi-sing (a) and (b) above, for preinvestment studies and for detailed en-gineering of further priority roads, and for assisting the reorganizationof the Ministry of Public Works, and (d) the purchase of equipment neededfor effective reorganization of the Ministry. Progress on the highway con-struction is a little slow largely because of bad rains in 1969; however,the quality of work is acceptable. Contracts for the remaining sectionsand La Virginia bridge were awarded in mid-1969 and work is only now gain-ing momentum. Consulting services for supervision of construction aresatisfactory, and procurement of equipment is underway. The governmenthas prepared a list of pre-investment studies for future highway projects;this is now being reviewed by the Bank.

ANNEX APage 2

5. From 1964, until his retirement in 1969 the Bank stationed an en-gineer with long experience of Latin American highway problems in Colombiato provide closer supervision of the Bank project. This arrangement wasof much value in identifying and correcting problems as they arose, butthe progress of internal improvements was sufficiently satisfactory towarrant its discontinuance.

6. Although the execution of the previous highway projects had beenlargely unsatisfactory, the Government that came into power in 1966 quicklytook important steps to correct the situation by the imposition of addition-al taxes on road users, the creation of the National Highway Fund with ear-marked revenues and the appointment of consultants to help reorganize theMinistry of Public Works. The services provided jointly by COMEC/Harris(Mexico/US) have expired but the Government has extended contracts ofexperts in the important field of highway maintenance. The reorganizationis not complete, but continued general improvement justifies proceeding withthe loan now under consideration.

7. In addition to the lending for highways mentioned above, the Bankhas made five loans totalling US$94.6 million equivalent to Colombia forrailways. The last loan was made in 1968 (551-CO, for US$18.3 million) fortrack rehabilitation and maintenance and procurement of rolling stock. Thetrack rehabilitation is six months behind schedule, due to the late deliv-ery of rail from Poland, but some of the delay is expected to be recoveredby the end of 1970.

8. Other international or national lending agencies have not untilrecently been particularly active in the highway field in Colombia. How-ever, USAID provided funds and equipment for the "Feeder road" program inits early stages and in 1968 IDB made a loan for US$12.7 million for theconstruction of the Cienaga-Santa Marta-Paraguachon road which will linkColombia and northern Venezuela. IDB has recently agreed to finance a1550 km feeder road program with a loan of US$17 million and has madeloan of about US$15 million for the construction of the Popayan-Pastohighway. Another loan of about US$16 million for the Santuario-PuertoTriumfo highway is being considered. Recently, the Bank of London andSouth America opened a sterling line of credit for E4 million for thepurchase by MOP of British road maintenance equipment, and the Export/ImportBank and two New York banks have made loans totalling US$10 million forthe purchase of road maintenance equipment in the United States.

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APRIL 1970 IBRD 2792R

Tab j

OOOMBIAs SIXTh HIGWY PROJECT

NATIONAL HIOH!S BY DISTRICT

DISTRICT H.Q. PAVED GRAVEL TOTAL

MEDELLIN 320 1,345 1,665CARTAGENA 396 309 705TUNJA 261 1,720 1,981MANILALES 530 606 1,136POPAYAN 116 891 1,007M)NTEIA 168 329 497BOGOTA 513 518 1,031QUIBD 225 225RIOHA CHA 435 435NEIVA 226 803 1)029VALLEDUPAR 319 957 1,276VILLAVICENCIO 58 878 936PASTO 20 1,316 1,336B3UCARAMNaiA 345 1,150 1,495CUCUTA 188 1,666 1,854IBAGUE 352 909 1,261PAL4MA 413 4 827FOREPCIA 66 198 264SAN ANDRES 12 48 60

TOTAI 4,303 14,717 19,020==la== anutw=e own==

HISTORIC COMPOSITION OF NATIONAL HIGHWAY NErW~RK

Year Length (Kx11) %PaVed

1962 16,512 U151963 16,692 13.71964 17,054 14.61965 17,479 15.01966 17,564 15.41967 17,997 16.61968 18,842 22.51969 19,020 22.6

Sources HOP, Planning Office, December 1969

Thle 2

COLOMBIA: SIXTH HIGHWAY PROJECT

DEPARTMENTAL ROADS

DEPARTMENT KM PAVED GRAVEL EARTH

ANTIOQUIA 2,461.0 - 2,481.0 -

ATLANTICO 552.4 338.2 180.0 34.2

BOLIVAR 204.1 - 95.1 109.0

BOYACA 860.0 - 552.0 308.0

CALDAS 880.0 - 862.0 18.0

CAUCA 426.9 - 364.9 162.0

CESAR

CORDOBA 267.0 - 155.0 112.0

CUNM1NAMARCA 2,981.7 95.1 2,499.6 387.0

CHOCO _

GUAJIRA 342.2 - 30.0 312.2

HUILA 617.5 - 350.5 267.0

MAGDALENA 181.0 - 28.0 153.0

META 787.0 - 352.0 435.0

NARINO 771.0 - 643.0 128.0

NORTE DE SANTANDER 179.0 - 68.0 111.0

QUINDIO 426.0 - 344.0 82.0

RISALRALDA 507.0 - 497.0 10.0

SANTANDER 1,861.5 - 837.4 1,024.1

SUCRE 164.0 - 76.0 88.0

TOLIMA 1,353.0 - 707.0 646.o

VALLE 3,276.6 79.0 2,929.7 267.9

TOTAL ....... 19,118.9 512.3 13,952.2 4,654.4_ w Xmom*n

Source: MOP, December 1969

Table i

OOWNBIA

SIXTH HIMRWA PROJECT

COINSULTANTS E:lIPED IN THE PROJEC

BARRANQUILLA BRIDGE

INGETEC - TANS (Colombia/USA)

EL PAIL.ON - BUENAVENTUtRA

INTEGRAL - GANNETT FLElG CORMDRY & CRENTER (Coloabia/ISA)

PAVI?I PROGRAM

INGETEC - TAM (Colcmbia/USA)

NTGRAL - GANNETT FLEOIM CORDDRr & CARPENTER (Colomb±a/JSA)

RESTREPO I URIBE (Colombia)

C. E. I. (Colombia)

PLANES (Colombia)

SAMEL (Colombia)

VILIADAD (Colombia)

April 28, 1970

COLOMBIA

SIXTH HIGHhAY PROJECT

AIR TRAFFIC 1964-1968

INTERNATIONAL DOMESTIC

PASSENGERS TONS Passengera(m) Passengers-Km(m) Tons(m) Ton-Klm(m)

IN OUT IN OUT

1964 115,127 124,723 5,017 2,350 2.58 1344 .109 71

1965 111,423 124,028 3,356 3,090 2.54 1337 .111 64

1966 132,516 138,038 4,932 4,402 2.53 1430 .119 74

1967 151,280 157,227 4,266 6,057 2.46 1526 .106 69

1968 184,721 197,339 5,351 5,861 2.50 1611 .103 72

Source: DANE, December 1969

CH,

!C2W112IA

SIXr ;HIIGT,MAY ?ROJ2CT

IMPCRIS AI) EXRLCS .?CUGTH MAJOR COLOMBU!.T ?O-RWTS 193-68 i-il1ion Metric Tons

Barranquilla Cartagena Santa Marta Buenaventura TotalYear In Out Total In Out Total In Out Total In Out Total In Out Total

.36 .05 .41 .18 .C0 .21 .02 .18 .2c .69 .27 .76 1.30 .55 1.81

1959 .28 .-O .32 .22 .c0 .25 .01 .21 .22 .56 .34 .90 1.07 .65 1.72

1960 .30 .04 .34 .28 .05 .33 .02 .20 .22 .52 .31 .83 1.12 .62 1.74

1961 .31 .04 .35 .32 .06 .38 .03 .21 .24 .64 .3C .94 1.29 .63 1.92

1962 .33 .04 .37 .27 .c8 .35 .c6 .17 .23 .58 .39 .97 1.24 .70 1.95

1963 .21 .05 .26 .28 .c8 .36 .14 .21 .35 .52. .36 .87 1.14 .73 1.87

1964 .33 .04 .37 .19 .09 .28 .31 .18 .49 .58 .34 .92 1.41 .69 2.10

1965 .26 .04 .30 .12 .09 .21 .21 .20 .41 .46 .38 .84 1.05 .73 1.77

1966 .41 .03 .44 .25 .08 .33 .33 .17 .50 .71 .47 1.18 1.70 .75 2.4S

1967 .25 .06 .31 .12 .07 .19 .20 .16 .36 .38 .56 *94 O.95 .85 1.80

1968 .35 .06 .41 .20 .98 .28 .31 .16 .47 .53 .65 1.18 1.39 .95 2.34

1/ Public Terminals only, excluding petroleum

Source: Colpuertos, Boletin Informativo, September 1969 H

Table 6

COLOMBIA

SIXTH HImHWAY PROJECT

SOURCES OF REVEN FOR 1969-72 HmHWAY PROGRAM(Mil1ion Pesos)

SOURCE 1969 1970 1971 1972

Gasoline & Diesel Taxes 693.0 720.0 740.0 760.O

Equipment rental 6.0 3.0 3.0 3.0

Sale of Equipment and Materials 6.0 10.0 10.0 10.0

Toll fees 5.0 - 10.0 13.0

Petroleum royalties - 34.0 8.2 8.2

Miscellaneous 2.8 14.7 2e0 2.0

Savi.ngs 126.0 172.5 - -

Foreign construction loans 2/ 171.0 362.2 493.0 527.0

Equipment Loans - 360.0 - -

National Budget Contributions 1400._8 _390.2 7299.5 1066.8

TOTAL 2/1,410.5 2,066.6 2,065.7 2,390.0

Source: MOP, December 1969 and MOP, Fondo Vial Budget 1970.

1/ These estimates are substantially more conservative than-those made by the National Planning Department and quoted inpara. 2o20*

2/ Subject to revision as further information on foreign credits becomesavailable.

2/ Some of these funds are used for river training works and as acontribution to the national feeder road program.

Table ?

COLOMBIA

SIXTH HIGHWAY PROJECT

PAST AND PROJECTED NATIONAL HI HWAY EXPENDITURES(M<llion Pesos)

Construction Ihintenance Total

1963 - _ 557e6

1964 - - 616.3

l965 - - 711.4

1966 - - 643.7

1967 - - 873.9

1968 - - 1088.3

1969 711.0 388.0 1099.0

1970 13.178.9 744,O 1922.0

1971 1326.3 4t32.5 1758.8

1972 1427.0 604.8 2031.8

Sources: National Planning Department and MP, National Road Fund,Budget 1970.

Note: The raintenance estimates include provision for equipnentin the year acquired, The construction expenditure forecastsare based on very tentative timing of projects. Plannedexpenditure on feeder roads is not included. Expenditure isshown in current prices and therefore actual historical growthis overstated.

April 28, 1970

COLOMBIA: SIXTH HIGHWAY PROJECT

MINISTRY OF PUiBLIC 'ORKS - HIGHWAY DESIGN STANDARDS

LIGHT TRAFFIC MEDIUM TRAFFIC 1D&VY TRAFC

USS]CTION _ _ LT - 1 LT - 2 MT - 3 Mr- 4 EIT - 5 Z - 6

Up to 250 250 - 500 500 - 1000 1000 - 2000 2,000 - 5.000 5.0o0

ER1RAIN H 1! I R I-F H H R F H | R F H N R [F H/M R [ - K 100

_ _ _ _ _ _ _ _ _ _~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ w J 7 8 0~~~~~~~6 o 06 80 100_ESIGN SPEED _Kph W 501 6C 70 60 5OT60 70 601 80 100 40. 80 100 /80 /100 /120 /80 /100 /120

WIdwrT OF PAVXT P _ 6.00 6.00 7.00 7.00 7.00 2 of 7.00

050 1,00 1.00 1.50 1.00 1. 1.00 1.50 1.001 .1.50 1.5012.00 12-50 2.50 1 2.50 |3.° 1.00 1.00 1.50

3HDULDR RIGHT O5 1.00 1.00 l.5C l.co 1.O L.00 1.50 1.00 1.00 1.50 2.00 1.50 1.50 12.00 ?2,5 2.50 2.5C 3.00 2-5o 3.00 3.00

IOTAL WIDTH m 7 8 8 9 8 8 8 9 9 9 10 11 10 10 U 12 12 12 13 10.50 11 11.50

U 510SLOPE % 8 7 6 5 7 6 5 L 6 5 4 3 6 5 4 3 5 4 | 3 5 4 3

M_ I _ __ ___ _/2 0 , 50 /75II0 urINIMU) RA.DIUS OF CURVES m 50 80 120 17o 50 80 120 1'C 50- 120 250 45 I5 120 250 1 120 ' 250 1 /50 95 %

[,ON-PASSING SIGHT DISTANCE m 50 70 80 100 5C 70 8c 100 50 80 120 io 50o 80| 120 180 /120 /180 /250 /120 1251 ....I 2&

350 50 00SSING SIGHT DISTANCE - 20C J 45O - 3 3530 450 200 350 500 600 200 3501 500 I600 ,500 /600| /800 _

fIDYr OF BRIDES (< 10 m -| Same as total width

|JlWdEEl CUlRlKS >_ 111_m 8 9 9 12 Of 9

DESIGN LOADING FOR BhRI;;B H20-S16-LL

Sour:e: Ministry of F-iblic Works - Dece:mber 1969

:3 - Rolling

F - Flt

COWNBIA

Sixth Hihway Project

Vehicle Registration 1958-1967

Passenger vehicles Euses Jeeps Panels and Piekups Light Trucks Trucks Others Total

1958 67,761 12,283 ll,414 25,092 4,991 36,949 895 159,385

1959 68,808 13,358 12,375 27,578 5,155 39,275 927 167,476

1960 72,353 15,030 14,539 30,601 5,336 43,0 61 998 181,918

1961 84,605 15,850 17,225 31,043 5,696 44,1145 1,037 199,601

1962 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

1963 85,273 17,911 23,315 41,980 7,270 39,381 2,210 217,340

1964 86,423 18,341 24,936 40, 673 8,o049 43,880 2,450 224,752

1965 87,977 19,345 27,037 41,994 8,724 455,171 2,643 232,891

1966 95,654 20,719 29,831 44,991 9,830 47,286 2,786 251,107

1967 98,216 21,344 n.a. n.a. n.a. n.a. n.a. 259,608

Sourgei Departamento Administrativo Nacional de Estadistica. (DANE) December 1969.

Table 10

COLOMBIA - SIXTH HIGHWAY PROJECT

Motor Fuel Con8uption, 1958- 1968 (u gal)/

Annual AnmalGasoline % Increase Diesel % Increase

1958 303.5 - 95.0 -

1959 317.7 4.6 99.0 4.2

1960 354.7 u.6 113.5 14.6

1961 399.6 12.6 124.5 9.6

1962 434.5 8.7 134.9 8.3

1963 442.0 1.7 135.5 0.4

1964 460.5 4.1 151.5 u1.8

1965 491.3 6.6 166.0 9.6

1966 527.6 7.3 176.9 6.6

1967 535.0 1.4 166.9 - 5.7

1968 583.8 9.1 190.7 14.2

Average 1958/68 6.6 7.2

1/ Converted at 1 barrel - 42 U.S. gal.

Source: Colombian Petroleum Information Center, December 1969

COLOMBIA

SIXTH HflHWAY PROJECT - IESIGN STANDARDS

BARRANQUILLA BRIDGE EL PAILON-BDENAVENTURA ROAD

A. APPROACH RAMPS A. Highway

Design Speed kph 65 Design Speed kph. 100

Width of Pavement m. 7.30 Width of Pavement m. 7.3

Width of Shoulders m. 3.00 Width of Shoulders:

Maximum Slope % 1.5 km o.946 to hm 9.000 m. 3.5km 9.000 to km 10+400 m. 2.0

Minimum Radius of Curves m. 573Maximum Grade % 3

Width of Embankment M. 13.30Minimum Radius of Curves m. 327

Width of Embankment:

kcm 0946 to km 2+700 m. 19.2km 2+700 to km 44300 me. J4.3km 44p300 to km 9+000 m. 19.2km 9+000 to kh 10400 me. 11.3

B. BRIDGE STRUCTURE B. BRIDGE EL PINAL

Width of Pavement m. 8.00 Width of Pavement m. 7.9

Width of Sidewalks m. 2.25 Width of Sidewalks m. 1.0

Total Width m. 12.50 Total Width m. 8.9

Maximnum Slope % 3.0 Mxiimum Slope % 0.0

Design Loading HS20-44 Design Loading HS20-44

Source: INGETEC/TAMS - October 1969 source: INTEGRA r - Gannet Flemming Corddry andCa.rpenter., December 1969

C 0 L 0 H B I A - SIXIE HIGRWAY PROJECT

P A V I N G P R O G R A H

CONST. COST / ADT RATE OF CGNSTR. COST ADT RATE OFKM PAVEMENT SHOULDER - 1970 RETURN Km PAVESMENT SSDULDER 1970 REMTUR

P R O J E C T a Type a (Hi-iion Peaos) P R O J E C T x Type * (Hllion Peso-)December 1969 Dcember 1969

GROUP 1 GROUP 8

PEDEANIL - TUQUlES 30 5 ST 9.3 260 12.2 PRIMAVERA - AMAGA 10 8.5 AC 6.9 11.60 25.0.

IPIALES - GUACRUCAL 23 7 ST 8.2 760 14.3 B0QUEROH - ANTIOQUIA 40 5.5 ST 15.3 240 11.2

SUB-TOTAL 53 17.5 LA CEJA - LA UNION 14 5.5 ST 3.6 480 25.0

GROUP 2 HATILLO - BARBDSA 10 7 AC 1.0 5.2 630 25.0.

GARZON-ALTAMIRA 29 7 RN 7.1 760 15.0 SUB-TOTAL 74 31.0

ALTAHIRA - PITALITI 47 5 RH 15.2 240 14.3 GROUP 9

ALTAMIRA - GUADALUPE 10 7 RH 3.5 450 25.0 CAPITANWO - HALAGA 35 5 ST 20.0 270 11.0

FlORENCIA - HIIZTANITA 32 6 RH 11.3 710 25.0 LA LEJIA - PAMPLONA 10 5.5 ST 4.4 240 11.0

HONTANITA - PUERTO RICO 68 5 R4 5.9 220 25.0 ZULIA - ASTILIROS 27 6 ST 8.8 440 22.7

FIORENCIA - BELEN 44 6 R4 14.9 280 17.0 SUB-TOTAL 72 32.2

SUB-TOTAL 230 57.9 GROUP 10

GROUP 3 LIMITIS - SAN AL3ER 35 7 AC 1.0 22.0 490 22.0.

CRUCERO PANCE - PTO.TEJADA 17 6-7 R1 8.4 530 25.0 SAN ALBERM - LA MATA 90 7 AC l.5 45.1 180 21.0.

YUMY3 - SAN MAROOS 10 7 AC 1.0 6.6 510 15.41 LA,HATA - SAN ROQUE 87 7 AC 1.5 69.0 370 14.1.

PALMIRA - TIENDANUE7A 10 7 1M 3.9 945 25.0 AGUACHICA - PIATANAL 22 7 RM 8.8 600 21.0

CRUCERO - GINEEA 6 6 ST 2.6 370 19.0 PLATANAL - RIO DE ORO 29 5 ST 12.6 280 10.4

SUB-TOTAL 43 21.5 SUB-TOTAL 263 157.5

GROUP 4 GROUP 11

LA UNION - TORO 10 6 ST 4.9 370 13.7 LA ESTACION -FUNDACION 59 7 AC 1.5 56.0 600 17.0.

ARHENIA - MDNTENEGRO 10 7 RM 1.5 7.6 840 25.0. SAN ROQUE - LA FSTAC1N 98 ' AZ 1.5 50.1 300 12.0.

NEIRA - ARANZAZU 30 6 ST 10.5 250 10.2 SAN ROQUE - ECEURIL 59 7 ST 1.5 19.8 230 11..C

LA VIRGLNIA - NAPOLFS 18 6 R1 6.4 1450 21.0 BECEPRIL - OODAZZI 32 7 ST 13.2 470 20.0

SUB-TOTAL 68 29.4 MARIANGOLA - B03CONIA 43 6.5 RH 1.0 18.2 390 20.C

GROUP S SUB-TOTAL 291 157.3

LA UNION - GUAKAL 30 7 1M 1.5 22.6 620 25.0. GROUP 12

GUAMAL - SAN MARTIN 23 7 RY4 1.5 20.4 360 15.0 TOLUVIEJO - SAN ONOFRE 140 7 RM 1.0 ]14.3 330 18.Cl

RESTREPO - CUMARAL 10 6 ST 3.0 1430 25.0 SAN ONOFRE - SOFIERIN 59 7 RM 1.0 27.0 510 20.0-

SUB-TOTAL 63 46.C HONTERIA - PLANETA RICA 16 6 RR 1.0 6.1 450 23.8.

GROUP 6 SUB-TOTAL 115 47.7

K 23 - UBATE 28 7 AC 1.5 33.6 760 23.0 G5RUP 13

UBATE - CHIQUINQUIRA 53 7 ST 22.2 530 23.2 PUERTA DE HimmRO-mAGANGUE 46 6.5 RH 1.0 14.3 400 14.0

SUB-TMTAL 81 55.8 CERETE - TOLU 70 7 RM 1.0 36.3 390 l1.O.

GROUP 7 PONEDERA - PTO. GIRALIM 20 7 AC 2.5 7.1 600 25.0.

ALVARADO - LA SIERRA 30 7 R4 1.5 3L..0 500 214.3. PTO. GRLIO _ CAIAMAR 36 7 AC 2.5 11.1 480 25.0.

PTO. SAILAR - RIONEGRO 32 8 R4 11.2 510 25.0 SUB-TOTAL 172 68.8

RIONEGRO - PTO. BOYACA 31 6.5 R1 10.5 350 25.0 TOTAL 1618 778.3

SUB-TOTAL 93 55.7

NOTES: ST- Surfa.e Tre.tmsentAC- Asphalt ConcreteRM- Road Mix

y/ Construction cost iroludes 10% quantity cootinge=cies.

.Indicates Rate or Return oser 20 year lire.

-ere e orild-~ widths -ot specified, exist'o.g variable shoulder widths.ill be used.

April 277, 1970

Table 13

COLOMBIA


1LGHTE VEHICLE OPERATING COST ON GOCW PAVEDROAD OVER LEVEL TERRAIN

Vehicle Type Basic Cost Weighted CostDistribution 1970 Ps$ /M.

Li ,ht Vehicles

Small automobile 10% o.68 0.068

Large automobile (publi-c service) 30% 0-95 0.285

Large automobile (private) 20% 0.95 0.190

Jeep, station wagon, Pick-up or

Panel Truck 40% 1.22 0.488

100% $1.031

Average cost of light vehicles Ps$1.023/n.

Uleavy Vehicles

Trucks 4-6 metric tons 10% 1.36 0.136

6-8 metric tons 25% 1.56 0.390

8-1-0 metric tons 35% 2.11 0.739

10, or more metric tons 5% 2.46 0.123

Large bus 25% 1.56 0.390

100% 1.778

Average cost of heavy vehicles: Ps$1.7 8 /hn.

Sources INGETEC/TAMS, Paving Program September 1969.

Table iL

COLOMBIA


OPERATING COST COEFFICIENTS FOR DIFFERENTHIGHWAY CONDITIONS

1. TYPE OF SURFACE Coefficient

Pavement Good condition 1.00

Deteriorated range 1.05-1.50

Gravel Average condition 1.30

Maximum range 1.10-1.5o

2. GEOMETRIC DESIGN STANDARD6

Standard Normal Speed Roadbed Mlnimum Maximum CoefficientsLight vehicle Width Radius Grade

Kh m m %

Good 50-- 80 6.5+ 70 7 - 8 1.00

Intermediate 40 - 60 6+ 40 7 - 8 1.10

Poor 20 - 40 4.5-6 20-40 7 - 9 1 20

3. GRADES

COEFFICIENTS

Grade Percentarge of Heavy Vehicles

0 20 40 60 80 JOO

0 - 3% 1.00 1.00 1.00 1.00 1.00 1.00

3 - 5% 1.02 1.04 1.07 1.10 1.12 1.15

5 - 7% 1.06 1.13 1.20 1.26 1.33 1.40

7 - 9% 1.12 1.25 1.37 1.50 1.62 1.75

Source: INGETEC/TAMS, Paving Program September 1969.

lo8,t 6v0-co file itrestricted - world bank...lo8,t 6v0-co file copy itrestricted repor no. ptr-44a...

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