Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 4374-MAS

STAFF APPRAISAL REPORT

MAURITIUS

HIGHWAYS PROJECT

June 16, 1983

Transportation Division IEastern Africa Regional Office

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

Currency Unit Mauritian Rupee (Re)US$1.00 a RS 11.0Re 1.00 - US$0.091

WEIGHTS AND MEASURES

1 meter (m) = 3.28 feet (ft)1 kilometer (km) 0.62 mile (mi)1 sq. kilometer (km2) 0.386 square miles (sq mi)1 hectare (ha) 2.47 acres (ac)1 metric ton (m ton) 2,204 pounds (lbs)

ABBREVIATIONS

AfDF = African Development FundAM = Air MauritiusBCEOM = Bureau Central d'Etudes pour les

Equipment d'Outre-Mer, FranceCAD = Civil Aviation DepartmentEDF = European Development FundFAC = Fonds d'Aide et de CooperationMEPD = Ministry of Economic Planning and

DevelopmentMMNA = 4Mauritius Marine AuthorityMOW = Ministry of Works

NTA = National Transport AuthorityPSIP = Public Sector Investment ProgramTD = Technical DivisionUNDP = United Nations Development ProgramVOC = Vehicle Operating CostsVPD = Vehicles Per Day

FISCAL YEAR

July 1 - June 30

FOR OFFICIAL USE ONLY

MAURITIUS

HIGHWAYS PROJECT

STAFF APPRAISAL REPORT

Table of Contents

Page No

I. THE TRANSPORT SECTOR ..................................... I

A. Geographic and Economic Setting ............................... 1B. The Transport System . . ........................................ 2

C. The Highway Subsector ....... 31) The Network .................................... 3

2) Road Use .................... ............... O-# ........... 5

3) Administration, Staffing and Training ....................... 8

4) Planning .............. 10

5) Financing .............. 10

6) Engineering and Construction ................................ 127) Maintenance ......................... . 12

D. Transport Sector Management, Policy, and Issues ............... 13

E. Previous Bank Group Involvement in the Sector ................ . 16

II. THE PROJECT .......................................................... 17

A. Objectives .................................................... 17

B. Project Description ........................................... 17

C. Cost Estimates ................................................. 21D. Financing ................. 23

E. Implementation and Procurement ................................ 23

F. Disbursements ........................................ 24G. Accounting, Auditing & Reporting Requirements.. 26

H. Environmental Aspects .. ........................................ 26

III. ECONOMIC EVALUATION .............................................. 27

A. Gener a l . ......................................... 27B. Main Benefits and Beneficiaries . .............................. 28

C. Economic Analysis ........................................ 28

D. Sensitivity and Risks .. ...................................... 30

IV. AGREFMENTS REACHED AND RECOMGENDATIONS ........................... 32

ANNEXS

I. Traffic Statistics and Fuel Consumption DataII. Investments in the Transport Sector

III. Equipment to be Purchased

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

(Contents Cont'd)

IV. Progress Reporting RequirementsV. Economic Evaluation of Strengthening and Improvement of RoadsVI. Related Documents and Data Available in Project File

CHARTS

1. Organization of Roads Section of Technical Division underMinistry of Works

2. Project implementation Schedule

MAP

Mauritius, Road System (IBRD 16945)

This report was prepared by S. Kathuria (Sr. Highway Engineer) andD. Jovanovic (Sr. Economist) who appraised the project in December 1982.

MAURITIUS

HIGHWAYS PROJECT

I. THE TRANSPORT SECTORt

A. Geographic and Economic Setting

1.01 Mauritius (see Map IBRD 16945) lies in the Indian Ocean about 900km east of Madagascar and about 2,400 km from the African coast. Inaddition to the main island, Mauritius, there are a few smaller islandsscattered in the Indian Ocean, most important of which is Rodrigues. Themain island is about 2,000 km2 just over half of which is arable land; therest is made up of rocks and mountainous slopes too steep for cultivation.With the exception of a few rocky areas, mostly along the sea coast, theterrain does not pose too much difficulty for land transport. However, thecountry is subject to cyclones between December and March which sometimescause severe damage to the infrastructure and the whole economy.

1.02 The population of 940,000 on the main island (1981), with thehighest density in Africa of about 470 inhabitants per km2 grew at 1.6% perannum over the period 1977-81. In addition, about 32,000 people live inRodrigues and other small islands. Due to the high density and closeproximity of urban areas to one another, distinction between urban andrural areas is difficult to make. This is also reflected in the trafficpatterns on the island.

1.03 Mauritius has basically a monostructural economy with about 90%of the arable land under sugarcane crop; sugar accounts for over 70% ofexport earnings. The economy is therefore extremely sensitive tofluctuation in both sugar production and its world market price. GrossDomestic Product (GDP) per capita was about US$1,350 in 1981, placingMauritius in the middle income group of developing countries. In theperiod 1976-79, GDF in constant prices grew at a high rate of 6.5% peryear. Thereafter, however, the country's economic situation started todeteriorate markedly, partly due to two successive bad sugarcane crops(1980/81 and 1981/82) and partly due to expansionary financial policy andthe resulting imbalance created in the economy. Disastrous cyclones in1980 aggravated the situation further and caused the Government to takeausterity measures -- curbing new capital investments and giving emphasisto preserving past investments and completion of projects already started.

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B. The Transport System

1.04 The transport system in Mauritius is simple; it comprises 1,787km of roads, of which 90% are bituminized, one deep-water port at PortLouis and an international airport at Plaisance. There are no railways,pipeline, coastal shipping or inland waterways. As the port and theairport are for external communications only, the road transport is theonly means of internal communications. Roads, however, with a fewexceptions, have very low geometric design standards, but the accessibilityis good. Transport communication with the other sparsely populated islandsis irregular except with the island of Rodrigues to which Air Mauritiusprovides a regular service with a small aircraft.

Highways

1.05 Details of the highway subsector are given in subchapter C.

Port

1.06 Port Louis, the country's only deep-water port, has five berths,two of which are for container traffic. It also has separate terminals forsugar export and for import of fuel. Under a Bank-financed project (Para.1.46), the port capacity has been significantly increased and is expectedto be adequate to meet the country's needs in the foreseeable future!/- Inaddition, a food grain facility at the port is being built with AfricanDevelopment Bank (ADB) and BADEA assistance. Average waiting time for shipsof 30 days in 1978 has been completely eliminated and the port operationshave become more efficient. The preparation of a master plan for futureland use in the port areas which is proposed to be financed by FAC (France)is expected to start in 1983.

1.07 Traffic volume in the port is heavily influenced by sugarproduction and its export which on an average is about 700,000 tons perannum, compared to a total port traffic of 1.7 million tons in 1981/82. Inthe period 1977/78-1981/82, traffic in the port declined on an average by5% per year (Annex I, Table 1) due to the difficult economic situation inthe country and consequent reductions in external trade. Containertraffic, however, has been gradually increasing reaching about 192,000 tonsin 1981/82 or 11% of the total port traffic. Cargo handling in the port is tdone efficiently by a private company (Consolidated Cargo ServicesMauritius, Ltd.) under the auspice of Mauritius Marine Authority (MMA).Government is, however, considering creating a cargo handling corporationand the Bank has been in dialogue with the Government on this subject;the dialogue will be continued. The management of the port, is generallysatisfactory; all its staff, except one pilot, is local. MMA hasadministrative and financial autonomy under the Prime Minister's Office.

1/ The port facilities for general cargo and for containerized cargo wereused at 60% capacity in 1981/82.

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Its financial position has been good and net revenue increased from Rs 11.9million in FY80 to Rs 16 million in FY82 (US$1.45 million equivalent).

Civil Aviation

1.08 In view of Mauritius' long distance to the African mainland andto the rest of the world, air transport has particular importance forinternational communication. Mauritius is well served by air transportservices extended by 12 airlines providing 25 scheduled flights per week toand from Africa, Asia, Australia and Europe. In addition to theinternational airport at Plaisance, capable of accommodating Boeing 747aircraft, there is a small airport on Rodrigues island served by AirMauritius (AM) three times per week. The Civil Aviation Department (CAD)under the Prime Minister's Office is responsible for the planning,development and operation of air transport on the islands. In addition, CADis in charge of establishing landing fees, airport passenger charges andother airport related taxes.

1.09 Passenger traffic at the Plaisance international airport has beengrowing steadily at an annual rate of 3%, reaching about 338,000 passengersand 7,250 tons of freight in 1981 (Annex I, Table 2). In the same year,the airport in Rodrigues handled only 6,400 passengers and 15 tons offreight. With the growth of tourism, the traffic at Plaisance airport isexpected to grow further, requiring improvements and modernization ofairport facilities (Para. 1.44).

1.10 AM has mixed ownership with a Government share of 51%, thebalance being made up by British Airways, Air France and Air India. AMoperates three aircrafts: Boeing 707-B (to Rome, London, Johannesburg);Boeing 737 (to Nairobi, Bombay, Moroni) and a Twin Otter (to Reunion and

Rodrigues). Due to improved efficiency of operations (increased capacityutilization, opening of new profitable routes, and cutting down onoperating costs) a profit of about Rs 28 million (about US$2.5 millionequivalent) was achieved in FY82, after 2 years of small losses. Thenumber of passengers carried by AM increased in FY82 to 108,000 or by 36%from the previous year, while passenger/km increased by 55%. Localstaffing is being improved; in 1982 there were 10 Mauritian pilots and 4expatriates.

C. The Highway Subsector

1) The Network

1.11 The road network consists of 1,787 km of classified roads.Except for 176 km of rural roads which have a gravel surface, all roads arebituminized. The roads are classified into four categories: motorways,main roads, urban roads and rural roads with the following lengths (Table1.1):

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Table 1.1

Road Network

Category Length

Motorways 26Main Roads 837Urban Roads 578Rural Roads 346

Total 1,787

1.12 The motorways comprise the Port Louis-Phoenix link ( 15 km) andthe Port Louis-Pamplemousses (Calebasses) link ( 11 km) which serve torelieve traffic congestion in and around Port Louis. The main roadsconstitute principal links of the country's road network and connectdistrict headquarters and main population centers with one another and withPort Louis, the Capital City. The Urban roads are defined as those roadsother than motorways and main roads lying within the boundaries ofproclaimed municipalities, and the rural roads as being roads other thanmotorways and main roads lying outside municipal areas. The latter formthe tertiary network serving local polulation centers and agricultural

areas. The road link between Port Louis and Mahebourg forms the principalroute connecting the towns of Beau-Bassin Rose-Hill, Quatre Bornes, VacoasPhoenix, and Curepipe to the Plaisance Airport. The density of the roadnetwork (0.9 km per km2) is highest in the region; accessibility is

good and almost every village on the island is served by an all-weatherroad.

1.13 With the exception of motorways, most of Mauritius' roadsoriginated as agricultural tracks which were progressively improved butwithout proper studies for their layout or design. Due to the progressiveimprovements done, the road pavements are heterogenous and structurallyweak, and are in need of strengthening. There is also lack of adequatedrainage along most roads. Many roads are confined between agricultural(sugarcane) fields, with not enough room to provide adequate shoulders andside-drains. The road reserve, about 1.5 m on either side of the pavement,meant for depositing materials, etc. for road maintenance is oftenencroached by farmers with their plantings. Under the Road Ordinance(1966), Government has the authority to prescribe improvement lines forroad widening, however, due to the strong lobby of sugarcane industry inthe country land acquisition is expensive, difficult and time consuming.

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(2) Road Use

Vehicle Fleet and Traffic

1.14 The motor vehicle fleet in 1981 totalled about 52,000 vehicles,of which 2,200 were owned by the Government. The relative size of thefleet is one of the highest in Africa -- about 23 inhabitants per vehicle(excluding motorcycles). Over the period 1976-81, the annual averagegrowth of the fleet was about 5%, however, due to the prevailing economicsituation in the country, there had been stagnation in the size of thefleet during 1979-81. lhe highest growth recorded was for vans andpick-ups (9.7%). Most of the fleet is made up of light vehicles (84%),while trucks make up 8.5% and buses 3% (Table 1.2).

Table 1.2

Motor Vehicle Fleet 1/Motor- Passenger Taxi Other 2/

Year Cycles Cars Cars Vans Buses Trucks Vehicles Total

1976 6,455 18,368 2,288 5,264 1,186 3,540 2,070 39,1711977 7,884 20,630 3,700 6,529 1,261 3,942 2,213 46,1591978 8,437 21,757 3,609 7,233 1,393 4,195 2,333 48,9571979 8,550 22,400 3,479 7,747 1,468 4,250 2,400 50,2941980 8,304 22,280 3,305 8,153 1,490 4,200 2,279 50,0111981 8,158 22,156 3,146 8,369 1,475 4,216 2,231 49,751Share inFleet in1981(%) 16.4 44.5 6.3 16.8 3.0 8.5 4.5 100.0Average AnnualGrowth Rate(%): 4.8 4.0 6.6 9.7 4.4 3.7 1.6 4.9

1/ Privately-owned vehicles; inaddition, there are about 2,200government-owned vehicles.

2/ Include tractors, ambulances, fireservice vehicles, etc.

Source: Ministry of Economic Planning andDevelopment, Port Louis, December 1982.

1.15 Since 1976/1977, systematic traffic counts have been carried outon the main road network by the Traffic Section of the Technical Division(TD) under the Ministry of Works (MOW) using automatic counters. Thetraffic volumes on the main roads are high -- exceeding 300 vehicles perday (vpd); some road sections, particularly in urban locations, carryseveral thousand vehicles per day.

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Fuel Consumption and Price

1.16 The consumption of gasoline has been declining since 1979 due todifficulties in the economy which called for import restrictions. In theperiod 1977-81, the average annual decline in consumption was about 6%(Annex I, Table 3). The consumption of diesel fuel, however, increased inthe same period at a moderate annual rate of 2%, due mostly to a steadygrowth of bus passenger transport.

1.17 The fuel pricing policy of the Government is reasonable; there areno subsidies. The retail price 2/ of gasoline (super) is US$0.68 perliter or US$2.58 per US gallon and of diesel fuel, US$0.41 per liter orUS$1.55 per US gallon (Table 1.3). The import duties on fuel, about 40%for gasoline and 10% for diesel fuel, are the major source of Governmentrevenues from road users (Para. 1.33).

Table 1.3

Fuel Prices (December 1982)(US$ per litre)

Super Regular Diesel Fuel

CIF (Port Louis) 0.29 0.28 0.28Port Fees 0.04 0.04 0.04Landed Cost 0.33 0.32 0.32

Custom-Duty 0.27 0.27 0.04Handling (includingtransport to pump) 0.04 0.04 0.02

Profit Margin 0.02 0.02 0.01Wholesale Price 0.66 0.65 0.39

Retailers' Margin 0.02 0.02 0.02Pump Price 0.68 0.67 0.41

Source: Ministry of Finance, Port Louis,December 1982

2/ No shadow pricing is applicable.

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Road Transport Industry

1.18 Passenger transport is generally regulated, while freighttransport is deregulated. The former is handled by 4-5 major transporterswith a total fleet of about 800 buses and by over 200 owner-operators withabout 450 buses. The bussing fleet is generally in good condition with

about 75% being 4 years old or less. The National Transport Authority(NTA), under the MOW, regulates the industry and provides passenger public

carriers with licenses and route allocations. NTA also regulates tariffs.The latest tariff became effective in January 1982. The passenger rates

are Re 075 for the first mile and Re 0.25 for each subsequent mile; therate is made up on commercial basis and covers costs. Due to surplus

capacity of the bus fleet there is fierce competition among the carriersand some -- usually smaller ones -- occasionally go out of business.

1.19 One of the major carriers in passenger transport is the NationalTransport Corporation (NTC), the only parastatal company, created in

1980. NTC has a fleet of about 240 buses, covering about 20% of thepassenger transport on the main island. So far, its operations have beensatisfactory. On its routes NTC has achieved a good load factor of 78%,and in less than three years made a profit of about Rs 1.2 million (aboutUS$0.11 million equivalent). NTC reports to a Board of Directors composedof various ministries and local authorities.

1.20 Freight transport is carried fully by private operators. Withabout 3,500 trucks in use, the capacity is slightly higher than thedemand. There are no restrictions for entry into the industry and noofficial tariffs. The transport rates are negotiable; the rates for themain client -- the sugar industry -- are regulated by contract; actualrates applied range between Rs 1.0-2.0 per ton/mile, depending on haul,

load, vehicle size, commodity type. While the passenger carriers areorganized in three unions, freight transporters have no union.

1.21 The Government is undertaking a Public Transport Study under theUrban Rehabilitation and Development Project (Loan 1926-MAS) with

co-financing by the Saudi Fund. The study which is expected to commence inthe second half of 1983 will review passenger and freight transportregulations and will make recommendations for improving public transportmanagement, routing, pricing policies, etc. The Terms of Reference for the

study have been reviewed by the Bank. At negotiations Government agreed toexchange views with the Bank on the study's findings and to take follow up

action satisfactory to the Bank (Para. 4.01 (i)).

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1.22 Road traffic regulations are enforced by police traffic units.The road traffic accident rate has been on the decline since 1980 (Annex I,Table 4), but is still relatively high taking into account the size of thepopulation. Vehicle technical inspection -- fitness certificate -- isissued by NTA and is obtained on the basis of an inspection by the vehicleexamination center. For new commercial vehicles the certificate is issuedfor one year in the first instance and for three months to one yearthereafter, depending on the state of the vehicle. For new private cars,there is one vehicle inspection in the first year, none for the followingsix years and annually thereafter.

1.23 Under the Road Traffic Ordinance (1962), the Government isempowered to prescribe maximum laden weight and maximum axle-load ofvehicles. According to the current regulations, no vehicle with a grossvehicle weight in excess of 22 tons is allowed to ply on public roads,except with the special permission of the Commissioner of Police and thePermanent Secretary of the MOW. However, no limit has been fixed for theaxle-load. The Government is now considering increasing the maximum grossvehicle weight limit from 22 tons to 35 tons and to make regulations fixingthe maximum axle-load of vehicles; the maximum load for a single axle isproposed to be 10 tons which is appropriate. During negotiations, it wasagreed with Government that it will, by December 31, 1984, make and enforceadequate regulations for vehicle weight, axle-load and dimensionslimitations in the country (Para. 4.01 (ii)).

3) Administration, Staffing & Training

1.24 The TD of the MOW is responsible for construction, improvementand maintenance of motorways and main roads, and also for construction andmaintenance of buildings. Rural roads are administered by the threedistrict councils, while the upkeep and maintenance of urban roads is theresponsibility of the five municipal councils. Local authorities relymostly on Central Government for funds. Due to the lack of adequate funds,their standards of performance are low and they cannot afford to employ therange of staff required to perform their functions. Government iscurrently considering reorganization of the district and municipalcouncils. While the Urban Rehabilitation and Development Project includes,inter alia, strengthening of the institutions responsible for urbanplanning, development and maintenance, the proposed Technical AssistanceProject related to the SAL will include a study on the needs andorganization of rural road maintenance.

1.25 The TD comprises eight sections: Roads, Buildings, MaterialsLaboratory, Traffic, Mechanical, Sewerage, Quantity Surveying andArchitecture. Each of these sections, except Quantity Surveying andArchitecture, are headed by Principal Engineers; the Quantity Surveying andArchitecture Sections are headed by a Quantity Surveyor and Principal

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Architect respectively; they all report to the Chief Engineer. Theorganization structure of the TD is shown in Chart I.

1.26 The TD has a well equipped materials testing laboratory locatedat its headquarters in Phoenix. About 70% of the workload in thelaboratory relates to design and investigation work for roads. The TDextends its laboratory facilities to private firms; it assisted consultantsin carrying out geotechnical investigations for strengthening andimprovement of the project roads. The Materials Laboratory is staffed by aPrincipal Engineer, a material testing officer, 5 material testingassistants, 7 laboratory attendants, and a number of other staff.

1.27 The Mechanical Engineering Section is responsible for the repairand maintenance of vehicles and plant of various Governmentministries/departments. It is staffed by a Principal Engineer, 2mechanical engineers, 2 mechanical officers, a workshop supervisor and anumber of support staff, and has a work force of about 105 tradesmen(mechanics, electricians, fitters, blacksmiths, etc.). Besides, there aresome 75 apprentice tradesmen. The MOW's main mechanical workshop in PortLouis handles all major overhauls and repairs for vehicles and plant, whilefive mechanical outposts (at Mahebourg, vacoas, Centre de Flacq, Rose-Hilland Terre Rouge) take care of light repairs and routine servicing. About60% of the overall workload in the workshop relates to TD's vehicles andplant. The workshop has adequate equipment and tools, but it lacksfacilities for storage of spare parts, sheds for repair and servicing ofvehicles and plant, etc. The project will help in providing thesefacilities (Para. 2.10).

1.28 Finance Section of the MOW maintains TD's accounts of all capitaland recurrent expenditures on works. The Finance Section which is headedby a Principal Finance Officer is properly organized and adequatelystaffed; it has a separate unit for internal checks and control. The MOW'saccounts are audited on a regular basis, four times a year, by Governmentauditors under the supervision of the Director of Audit who reports to theParliament. The accounting and auditing procedures followed are found tobe generally satisfactory.

1.29 The TD is well organized, and is adequately staffed; it currentlyhas 19 engineers, 5 architects, and 3 quantity surveyors of which 2 are

expatriates employed under the Indian Aid Program; most of the TD'sengineers were trained abroad. A few staff received their training at theUniversity of Mauritius (MU). MU offers courses in civil, mechanical andelectrical engineering; the first batch of four civil engineers graduatedfrom the university in 1980-81. The yearly intake of students in each ofthe engineering faculties currently is around 10. The Industrial Trade

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Training Center (ITTC) at Beau-Bassin, established in 1969 with UNDP/ILOassistance, and the ITTC at Piton, established in 1979 with assistanceprovided under the Bank's First Education Project (Loan 1033-MAS), providevocational training to about 480 students each year. The courses conductedat the ITTCs include: mechanical engineering, welding and metalfabrication, masonry and concrete work, etc. In addition, the Lyce6Polytechnic set up in 1982 with the assistance of French Governmentprovides courses in civil, mechanical and electrical engineering for about112 students annually. Besides, there are facilities within the TD foron-the-job training of staff. The training facilities in the country areadequate for the TD's needs.

4) Planning

1.30 The MOW is responsible for planning motorway and main roaddevelopment and improvement. Planning of urban and rural roads is theresponsibility of the muncipal and district councils. The ongoing UrbanRehabilitation and Development Project provides for strengthening theinstitutions responsible for urban planning, development, and maintenance(Para. 1.24). In the case of rural roads not much planning beyondprogramming of periodic and routine maintenance is required.

1.31 Although the MOW has the requisite staff (transport engineer,economist, statisticians, etc.), there does not exist a well-definedplanning unit for systematic planning of road investments, projectpreparation and monitoring of execution of works. During preparation ofthe proposed project, the Bank recommended and the Government agreed toestablish a planning unit in the MOW. During negotiations, it was agreedthat the Government will by December 31, 1983, establish in the MOW aplanning unit with such organization, functions and staff as shall besatisfactory to the Government and the Bank (Para. 4.01 (iii)).

5) Financing

1.32 Road maintenance is financed by the Government's recurrent budgetwhile road construction is mostly financed from foreign sources (Annex II);in the period 1977/78-1981/82, only Rs 23.35 million, or 19% of total roadconstruction costs was financed by the Government's capital budget -- lessthan Rs 5 million per year. For the 1982/83-1986/87 Public SectorInvestment Program (PSIP) the Government's share in road construction isanticipated to increase to Rs 120.4 million, or 28% of all investmentsearmarked for the roads subsector.

1.33 The Government expenditures on main road construction andmaintenance are about Rs 12-13 million annually; in addition, an amount ofabout Rs 2-4 million is estimated to be spent on urban and rural roads.Revenues from road users considerably exceed the Government expenditures on

roads; in the five-year period FY 1977-81 the Government's total revenuesfrom road users (import duties on fuel, motor vehicles, spare parts andtires, road tax, licenses, etc.) averaged about Rs 196 million (Table 1.4).Hence, the revenues from road users can not only cover the anticipatedincrease in Government share in new road construction but will also providefor the needed additional funds for road maintenance (Para. 1.38).

Table 1.4

Revenues from Road Users(in Rs '000)

FY 1977 1978 1979 1980 19811. Import Duties 1/

on Gasoline 31,400 52,020 91,200 113,000 118,670

2. Import Duties 2/on Diesel Fuel

and Lubricating Oil 8,590 9,980 13,810 27,300 32,920

3. Import Duties 3/on Motor VehicTes 61,500 28,200 47,300 49,300 53,900

4. Import Duties onBodies, Spare Partsand Tires 9,090 14,980 24,630 23,495 24,790

5. Road Tax 4/ 14,905 23,270' 24,235 24,543 26,960

6. Licences 1,557 1,703 5,316 5,150 4,938

7. Vehicle Examinationand Registration Fees 880 1,352 3,010 2,933 2,963

Total 127,042 131,505 209,501 245,721 264,511

(US$ million) (11.55) (11.95) (19.05) (22.34) (24.04)

1/ Import duty is 40% of retail price.2/ Import duty is 10% of retail price.3/ Import duties range between 30-50% ad valorem; in addition,

there are fiscal duties which can go up from 50-200%, dependingon the vehicle type.

4/ The road tax is paid annually for every motor vehicle (exceptGovernment-owned) and ranges between Rs 485 (for cars) - 2,915 (forheavy trucks).

Source: Ministry of Finance, Port Louis, December 1982.

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6) Engineering & Construction

1.34 The TD of the MOW carries out minor road and bridge design usingits own staff, while all economic feasibility and detailed engineeringstudit3s are done by foreign consultants. As is the case with studies forthe proiect roads, foreign consultants sometimes form joint ventures withlocal firms. For new roads, such as motorways, design standards basedmainly or those developed by the UK Department of the Environment or theFrench Ministry of Equipment have been followed with certain modificationsto suit local conditions. These are adequate.

1.35 Major construction works are put to contract after competitivebidding and are supervised by consultants. Until 1978, the TD maintained aroster of contracting firms eligible to bid for works up to a particularvalue depending upon capability and financial status. This has not beenupdated since. At present, however, contracts are let out followingsuitable prequalification and competitive bidding which is satisfactory.The Development Works Corporation (DWC), a parastatal organizationestablished in 1970 under the Ministry of Employment also undertakes avariety of civil engineering works both in urban and rural areas. Theproposed Technical Assistance Project related to the SAL will include,inter alia, assistance for restructuring the DWC which will be givenfinancial autonomy by July 1984. While there are a large number of privatefirms in the country who can handle building contracts, there are only afew firms capable of undertaking large road works. However, there is noscope for a larger number of firms as the construction industry iscurrently faced with the problem of discontunity of work.

7) Maintenance

1.36 The TD's road maintenance organization is sound. Roadmaintenance in each of the nine districts is carried out under thesupervision of an inspector of works (Roads) assisted by an assistantinspector of works, work overseers/supervisors and other staff. Theinspectors of works are responsible to a chief/senior inspector, normallyin charge of two districts, under the overall control of an engineer(civil) who reports to the Principal Engineer (Roads). Routine maintenanceis done by force account with the help of road gangs (6-8 men), eachcovering an average of 5 km of road, while road resurfacing (single/doublegrouted macadam) is carried out by special gangs using equipment. The TDhas sufficient equipment including those recently provided under the IndianLine of Credit and with the assistance from the African Development Fund(AfDF). But, it still needs equipment for patching operations (Para.1.37). Because of the lack of adequate funds the TD is unable to purchasematerials such as bitumen, fuel, spare parts, etc.; the quantity andquality of road maintenance is less than satisfactory. Most paved roadshave not been resealed for some ten years or more. The more heavilytrafficked roads show pronounced deterioration in the form of surfacedeformation, potholes and cracks over long lengths. The situation has beenpartially alleviated by the resurfacing work done on certain roads underthe Cyclone Reconstruction Program financed by the AfDF in 1980.

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1.37 Due to the structurally weak pavements and indequate drainage(Para. 1.13) widespread damage is caused to roads during rains and the TDis unable to carry out patching operations effectively with the help ofroutine maintenance gangs. It therefore plans to establish mechanizedpatching units in order to help speed-up the operations and cut wastes.The project will help finance some equipment for the purpose (Para. 2.12).

1.38 There has been a decline in the funds allocated to the TD forroad maintenance and present allocations are far below requirements. Table1.5 shows the funds requested and those allocated for road maintenanceduring the period FY 1979-83.

Table 1.5

Allocation for Road Maintenance FY 1979-83(KS million)

1979 1980 1981 1982 1983

Funds requested 10.40 10.40 10.40 6.92 9.00

Funds allocated 10.40 6.75 9.21 8.09 7.00

Based on data by the TD, the estimated requirement of recurrent funds forroutine and periodic maintenance of roads administered by the TD is Rs 15million (US$1.36 million equivalent) in 1983 prices. During negotiations,agreement was reached with the Government that annual budgetary allocation

for road maintenance to the TD for FY 1984-86 will be at least Rs 15million (US$1.36 million equivalent) in 1983 prices, and that not later

than four months before the beginning of each fiscal year the Governmentshall, until the completion of the project, review with the Bank thebudgetary requirements and the proposed budgetary allocation for roadmaintenance (Para. 4.01 (iv)).

D. Transport Sector Management, Policy, and Issues

1.39 Transport sector management is adequate for the needs of thetransport infrastructure. Limited capital investment needs of the sector

do not require close coordination of developments in different transportmodes. The Ministry of Economic Planning and Development (MEPD) makes an

overview of the development in the transport sector (Para. 1.40). However,responsibility for the management of the sector is divided among variousministries/departments. MOW is responsible for development and maintenanceof motorways and main roads while the upkeep of rural and urban roads isthe responsibility of the local authorities; NTA is in charge of roadtransport industry; MMA handles ports' operations, while CAD is responsiblefor planning, development, and operation of air transport; both MMA and CADreport directly to the Prime Minister's Office.

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1.40 At present there is no integerated economic plan for the countryand none for the transport sector. The MEPD is in charge of planningcapital investments in the country, including ones for the transport sectorand finalizes proposals for the transport sector initially made by theCAD and MMA (for port and maritime transport) and MOW (for roads and roadtransport industry). Planning in the port and civil aviation subsectorsappears satisfactory while the one in MOW needs improvement (Para. 1.31).

1.41 Government transport sector policy in recent years has beeninfluenced significantly by the deterioration of the economic situation andfinancial austerity program in the country. This has led the Government topursue a pragmatic approach in investing in projects of importance for the

country's economy, particularly export earnings (the port extension andmodernization project, construction of roads leading to the port and postcyclone road rehabilitation).

1.42 The transport sector strategy of the new Government, which cameinto power in July, 1982, has not yet been established. however, theindications are that its general approach is to assign priority to thecompletion of ongoing projects and to rehabilitation/improvement ofexisting infrastructure. Total actual investments in the sector for the1977/78-1981/82 period were Rs 272.5 million (US$29.3 million equivalent).The share of transport investments in total public investments was about9%, which appears to be low considering the strengthening and improvementneeds of the main road network. In the PSIP (1982/83-1986/87) the share oftransport investments is, however, increased to 12.6% with total envisagedinvestments in the five-year period of Rs 934.7 million (about US$85million equivalent). The earmarked investments would amount to 46% for

roads, 42% for civil aviation and 12% for the port (Annex II).

1.43 The program for the sector is generally reasonable with theemphasis on the improvement of the Plaisance international airport and thestrengthening and improvement of main roads. Since the port was recentlymodernized and extended, no major port project is envisaged in theinvestment program. The transport projects in the PSlP are listed in Table1.6. They generally make sense; the strengthening and improvement of main

roads is included in the proposed project.

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Table 1.6

Transport Projects in PSIP for 1982/83-1986/7

EstimatedRoads Cost Remarks

(Rs million)

1. Strengthening/Improvement of 210 Proposedmain roads (75 km) Highways Project (IBRD)

2. Phoenix-La Vigie Road (8.5 km) 95 To be financed by FACand EDF

3. New Bridge over Grand River 45 To be financed by ABD4. Port Louis Through Road (1.6 km) 75 Financing being

considered by ADB5. Post Cyclone Road Rehabilitation 5 Project completed

in 1982Total 430

Port6. Land Reclamation in the

port area 30 Study to be financedby FAC

7. Construction of a dredger 10 Under considerationby MMA

8. New grain facility in the 50 Underway with BADEAport and ADB assistance

9. Additional cargo handling equipment 1010. Main port project 7 Completed in January

1983 (IBRD)11. Other small projects 4 To be financed by MNA

Total 111Civil Aviation

12. Construction of new terminal 200 Assistance underbuilding consideration by PR

of China13. New taxiway, short road access 35 Financial assistance

and new parking lot being sought14. Resurfacing of runway 35)15. New navigation aids 30) Financial assistance16. Construction of new control 20) being arranged with

tower Caisse Central (France)

17. Other projects 73Total 393

Grand Total 934

Source: Ministry of Economic Planning and Development, December 1982.

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1.44 As regards the international airport, the Government wasoriginally considering building a new airport in the northeast. However,it has finally adopted the alternative supported by the Bank -- to improvethe existing international airport. The project is planned to beimplemented in two phases: (i) resurfacing of the runway, building a newcontrol tower and installation of additional navigational aids; financialarrangements are almost completed; a long-term credit under soft terms byCaisse Central (France) has been secured; and (ii) construction of a newterminal building (expected to be financed by People's Republic of China),a new taxiway, short road access to the new terminal and a new parking lot;the second phase is expected to start in 1985.

1.45 There are no major outstanding issues in the sector. The publictransport needs improvement and it will be addressed in the study to becarried out in 1983 under the Urban Rehabilitation and Development Project(Para 1.21). The planning in the roads subsector is expected to improvewith the creation of the Planning Unit. The Bank's assistance is geared tohelping the Government overcome constraints in economic development byrehabilitating and improving the existing transport infrastructure. TheBank-financed port project (Para. 1.46) has made an important contributionby expanding the port capacity and modernizing its operations. In regardto the airport project, the Government has secured external financing forthe first phase which is to be implemented during the period 1983-85.Under these circumstances, the Bank should now concentrate on assisting theGovernment with improvement of the country's road network. The proposedproject will help improve part of the country's main paved road networkwhich carries high traffic volumes and is in urgent need of pavementstrengthening.

E. Previous Bank Group Involvenent in the Sector

1.46 In the transport sector the Bank has so far financed extensionand modernization of the port of Port Louis with a loan of US$10 millionin 1974 (Ln 976-MAS). The loan financed the construction of two newberths, two transit sheds, a workshop, an administration building, portentrance dredging, procurement of cargo handling equipment, and technicalassistance. The project was later reassessed to reflect price increasescaused by initial delays in implementation and a subsequent agreement toconstruct a third berth. In 1976 a Third Window Loan of US$3.6 million(1339-T-MAS) was approved for the revised project. The port project wascofinanced by U.K. bilateral aid (US$3.0 million equivalent), and by UNDP(US$514,000) providing for the technical assistance to the port authority.

1.47 The project was successfully completed in January 1983. Its mainobjectives were met although the port capacities are presently under-utilized as a consequence of the fall in the economic activities andreduction in imports. Also some remedial work has been necessary to checksettlement of the land behind the main berths which is expected to becompleted by October 1983. The technical assistance included in theproject was effective and the management of the port operations hasimproved.

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THE PROJECT

A. Objectives

2.01 The objectives of the proposed project are to:

(i) protect the capital investment in selected main roadsand to increase their service life;

(ii) help improve MOW's capacity for planning roadinvestments, project preparation and monitoring of

execution of works;

(iii) help improve TD's capacity for road maintenance; and

(iv) assist in enforcing vehicle weight and traffic safetyregulations.

B. Project Description

2.02 The project comprises:

I. Strengthening and improvement of main roads:

1. Port Louis-Mahebourg (Plaisance Airport) Road (31.1 km)comprising:

(i) section Port Louis-Saint Jean, 9.6 km(ii) section Phoenix-Curepipe, 7.2 km(iii) section Nouvelle France-Plaisance Airport,14.3 km

2. Port Louis-The Mount Road, 11.0 km

3. Plaine Des Papayes Road, 10.1 km

4. Quartier Militaire-Bel Air Road, 22.9 km

II. Improvement to MOW's main workshop;

III. Construction of vehicle inspection center;

IV. Establishment and equipping of mechanized patching units;

V. Assistance for vehicle weight control including acquisitionof portable weigh-bridges

VI. Consultant services:

(a) project preparation; and(b) construction supervision.

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(i) Strengthening and Improvement of Main Roads

2.03 Consultants BCEOM-Limbada, Melvin & Partners (BCEOM-LMP) carriedout a feasibility study for strengthening and improvement of 10 roadsidentified by a Bank mission in April 1981,based on data by the TD. Thestudy, financed under a Project Preparation Facility (Advance No P043MAS),started in early July 1982 and was completed in mid-December 1982. Of theseveral roads studied, the four presented below totalling about 75 km, outof 140 km, were found to be economically feasible.

2.04 Port Louis-Mahebourg (Plaisance Airport) Road: is a principalroute connecting Port Louis, the capital city, with the Plaisanceinternational airport in the southeast (See Map). The Road is a majorinter-urban artery serving the towns of Beau-Bassin Rose-Hill, QuatreBornes, Vacoas Phoenix and Curepipe, and is one of the most heavilytrafficked roads in Mauritius. The road traverses mostly rolling terrain,with grades varying between 2-5 percent. Apart from the Saint Jean toPhoenix section , which forms part of the motorway between Port Louis andPhoenix, and the Curepipe to Nouvelle France section, the road has poorriding quality and shows deterioration in the form of surface deformationand cracks; the vertical alignment of the road is poor affording reducedvisibility; the sidewalks and drainage channels in built-up areas sufferfrom poor design and maintenance; the pavement thickness is inadequate andis in need of strengthening.

2.05 Port Louis-The Mount Road: forms part of a main artery linkingPort Louis with Centre de Flacq in the east. The road traverses slightlyrolling terrain, and serves areas of sugarcane plantation. The horizontaland vertical alignment of the road is generally satisfactory. However, theroad shows signs of distress and is in need of strengthening andimprovement.

2.06 Plaine Des Papayes Road: lies in the northwest of Mauritius, andpasses through the villages of Morcellement Saint Andr6, Plaine des Papayesand Fond du Sac. The road generally runs at the adjoining ground level andsuffers from lack of drainage, and has sharp curves at places; the ridingquality of the road is poor and its surface rutted and cracked. The roadis in need of strengthening and improvement.

2.07 Quartier Militaire-Bel Air Road: forms part of the arterialsystem connecting Port Louis with Bel Air, an important rural center in theeast, and serves areas of rich sugarcane plantation. The road traverseshilly terrain and has poor geometrics affording reduced visibility atcurves. The riding quality of the road is poor and the road shows signs ofdistress; the pavement thickness is inadequate and is in need ofstrengthening.

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2.08 In considering pavement strengthening/improvement alternatives,

the consultants identified two possible solutions, one for a service life

of 10 years and the other for a service life of 20 years. Based on

technical and economic evaluation, the consultants concluded and the

Government and the Bank agreed that the preferred solution was for a

service life of 20 years. The proposed road strengthening and improvement

works consist of bituminous/granular overlays of varying thicknesses,

improvement of geometrics, widening/reconstruction of shoulders and

improvement of roadside drains. In addition, sidewalks along roads in

built-up areas will be improved or reconstructed. Suitable construction

materials are available within reasonable distances; not much landacquisition is involved since shoulders and roadside drains would be

located within the road reserve (Para 1.13). During negotiations, it was

agreed with Government that it will be a condition of Loan effectivenessthat all legal and administrative steps required to ensure access to the

road reserve and other land required for the project have been taken

(Para. 4.02).

2.09 The design standards adopted for the roads (Table 2.1) are based mainly on

those developed by the French Ministry of Equipment and are appropriate.

Table 2.1

Design Standards of Project Roads

Port Louis- Port Louis- Plaine QuartierMahebourg The Mount Des Papayes Militaire-

Road Road Road Bel Air Road

Design speed 80 km/hr 80 km/hr 60 km/hr 60 km/hr

Carriageway width 7.0 m 1/ 7.0 m 6.0 m 6.0 m

Shoulder width (minimum) 0.7 m 0.7 m 0.7 m 0.7 m

Minimum horizontalcurve radius 240 m 240 m 120 m 120 m

Maximum gradient 6% 6% 6% 6%

Minimum verticalcurve radius:

(a) Concave 3,000 m 3,000 m 1,300 m 1,300 m

(b) Convex 2,200 m 2,200 m 1,500 m 1,500 m

Road Crossfall (minimum)(a) Carriageway 2.5% 2.5% 2.5% 2.5%

(b) Shoulders 4% 4% 4% 4%

1/ 10.5 m in first about 4 km from Port Louis.

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(ii) }provement to MOW's Main Workshop

2.10 The MOW's main workshop lacks adequate facilities for storage ofspare parts, sheds for repair and servicing of vehicles and plant, etc.(Para. 1.27). The project includes construction of a spare parts store,sheds for mechanics, painter and panel beater, and an extension toservicing station. It also includes construction of a messroom-cum-officeblock. All these will be located within the existing workshop compound.The architectural plans for the buildings have already been prepared by theMOW and are satisfactory.

(iii) Construction of VehicleInspection Center

2.11 The existing vehicle inspection center is incapable of handlinglarge size buses and trucks and the large volume of vehicles in thecountry. The project includes construction of a new vehicle inspectioncenter at Phoenix. The architectural plans for the building have alreadybeen prepared by the MOW and are satisfactory.

(iv) Establishment and Equipping of Mechanized Patching Units

2.12 Due to the widespread damage caused to roads during rains, the TDis unable to carry out patching operations effectively with the routinemaintenance gangs (Para. 1.37). It will establish mechanized patchingunits (average 2 per district) to help carry out this task. The projectincludes equipment for 10, out of the 18 units required; the remainingwould be purchased by the TD from assistance provided by AfDF under theCyclone Reconstruction Program. The equipment to be purchased is shown inAnnex III (Table 1).

(v) Assistance for Vehicle Weight Control

2.13 Until now, there is no regulation for axle-load limitation andcontrol in the country. Government is currently making regulations fixing,inter alia, maximum axle-load of vehicles (Para. 1.23). To help enforcevehicle weight and axle-load regulations, the project will finance 3portable weigh-bridges to be operated by the MOW.

(vi) Consultant Services

(a) Project Preparation

2.14 A Project Preparation Facility (PPF) of US$246,000 was used forConsultants feasibility study and detailed engineering for strengtheningand improvement of the project roads. Included in the project is provisionfor refinancing an advance of US$246,000 from the PPF.

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2.15 Consultants will be engaged to supervise strengthening andimprovement of the project roads under terms and conditions acceptable tothe Bank. The consultant services will be required over a 26-month periodbeginning January 1984.

C. Cost Estimates

2.16 The total project cost including contingencies is estimated atUS$24.1 million. Excluding taxes and duties, the total cost is US$21.0million, with a foreign exchange component of US$15.2 million or 72% ofproject costs excluding taxes. A breakdown of costs is shown below (Table2.2):

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Table 2.2

Estimted Project Costs% Foreign

Item Local Foreign Total Local Eoreign Total Component(Rs Million) (US$ Million)

I. Strengthening and Inprovement of Main Roads(including Right-of-Way Acquisition)

1. Port Liots-Mahebourg(Plaisance Airport) Road

(i) Section Port Louis-St.Jean 9.60 15.22 24.82 0.87 1.38 2.25(ii) Section Phoenix - Curepipe 5.97 10.26 16.23 0.54 0.93 1.47(iii) Section Nouvelle France - 18.37 28.97 47.34 1.67 2.64 4.31

Plaisance Airport2. Port Louis - The Mount Road 11.12 18.30 29.42 1.01 1.66 2.673. Plaine des Papayes Road 9.12 14.56 23.68 0.83 1.32 2.154. Quartier Militaire - Bel Air Road 19.08 29.54 48.62 1.74 2.69 4.43

Subtotal 73.26 116.85 190.11 6.66 10.62 17.28 61

II. Inprovenent to MOW's Main Workshop 1.63 3.03 4.66 0.15 0.27 0.42 65

III. Construction of Vehicle Inspection 2.12 1.71 3.83 0.19 0.16 0.35 45Center (including Land Acquisition)

IV. Procurement of Road Patching 0.12 2.30 2.42 0.01 0.21 0.22 95Equipment

V. Procurement of Portable Weigh-Bridges 0.03 0.50 0.53 0.01 0.04 0.05 95

VI. Consultant Servicesa) Project Preparation 0.68 2.75 3.43 0.06 0.25 0.31b) Construction Supervision 1.50 6.00 7.50 0.14 0.54 o.68

Subtotal 2.18 8.75 10.93 0.20 0.79 0.99 80

Base Cost 79.34 133.14 212.48 7.22 12.09 19.31

VII. Contingencies:a) Physical (10%) on items I-V & VI(b) 7.86 13.04 20.90 0.71 1.19 1.90b) Price 1/ on items I-V & VI(b) 11.32 20.73 32.05 1.03 1.88 2.91Subtotal 19.18 33.77 52.95 1.74 3.07 4.81Total Project Cost 98.52 166.91 265.43 8.96 15.16 24.12

Total Project Cost Excluding 'taxes 63.75 166.91 230.66 5.80 15.16 20.96 72

VIII. Front-End Fee on Bank Loan - 0.42 0.42 - 0.04 0.04Total Financing Required 98.52 167.33 265.85 8.96 15.20 24.16

On Rounding (98.5) (167.3) (265.8) (9.0) (15.2) (24.2)

1/ Expected Price Increases (7.):1983 1984 1985 1986

Local 10.0 10.0 10.0 10.0Foreign 8.0 7.5 7.0 6.0

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2.17 The base costs are estimated as of end-March 1983 and have beenderived as follows:

(a) Strengthening and Improvement of Roads: based onunit costs and detailed design quantitiesdeveloped by consultants taking into considerationcurrent prices of materials, labor and equipment,as well as prices on similar works carried out inMauritius recently.

(b) Imporvement to MOW's Main Workshop; andConstruction of Vehicle Inspection Center: basedon plinth area rates arrived at by MOW taking intoconsideration similar works carried out inMauritius recently, and have been found to bereasonable.

(c) Road Patching Equipment and PortableWeigh-Bridges: based on MOW estimates which reflectc.i.f. prices in March 1983, and have been foundto be reasonable.

(d) Consultant Services: (i) feasibility study anddetailed engineering of project roads under PPF isbased on Government's Contract with consultants;(ii) the supervision of strengthening andimprovement of project roads will require about 75man-months of consultant services over a 26-monthperiod. The average man-month costs includingsalaries, social costs, international travel,subsistence allowance, the firm's overhead andprofit, and other miscellaneous items areestimated at US$9,000.

D. Financing

2.18 The total project cost of US$21.0 million, net of taxes andduties, will be financed by a Bank loan of US$15.2 million including theFront-end Fee. The Government will contribute US$5.8 million which will

C cover local costs of the project excluding taxes.

E. Implementation and Procurement

2.19 Project implementation will be the responsibility of the TD ofthe MOW. Consultants will be engaged for supervision of the strengtheningand improvement of roads.

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2.20 The road works estimated to cost US$14.6 million equivalent,excluding taxes and contingencies, will be procured under unit pricecontracts through international competitive bidding in accordance with theBank "Guidelines for Procurement". The project roads will be divided intothree contracts: 1) Port Louis-Mahebourg (Plaisance Airport) Road, 31.1 km;(US$6.8 million); 2) Port Louis-The Mount and Plaine Des Papayes Roads,21.1 km; (US$4.1 million); and 3) Quartier Militaire-Bel Air Road, 22.9km; (US$3.7 million). Contractors will be invited to bid for one or morecontracts. The construction of spare parts store, sheds,messroom-cum-office block, etc. at the MOW's main workshop and vehicleinspection center (Paras. 2.10 and 2.11), estimated to cost US$0.70 millionequivalent, excluding taxes and contingencies, is unlikely to attractinternational competitive bidding. These will be built by localcontractors after competitive bidding in accordance with Governmentprocurement procedures satisfactory to the Bank. All contracts for workswould be subject to the Bank's prior review of procurement documentation.The road patching equipment and portable weigh-bridges (Paras. 2.12 and2.13), estimated to cost USO.27 million equivalent, excluding taxes andcontingencies, would not attract international competitive bidding and willbe procured after calling competitive quotations from established supplierswithin the country and abroad in accordance with normal Governmentprocedures which are satisfactory. The consultants for constructionsupervision will be employed in accordance with the Bank "Guidelines forthe use of consultants". These were agreed with Government duringnegotiations (Paras. 4.01 (v), (vi), (vii)).

2.21 The road strengthening and improvement will take 24 monthsbeginning January 1984 with an estimated 40% of works to be carried out in1984 and the remaining 60% in 1985; the construction of spare parts store,sheds, messroom-cum-office block, etc. at the MOW's main workshop, and thevehicle inspection center will take 12 months and the works will be carriedout in 1984. The procurement of road patching equipment and portableweigh-bridges will be completed by about mid-1984. The project isscheduled to begin at the end of 1983 and be completed by end-June 1986.An implementation schedule shown in Chart II was agreed with Governmentduring negotiations (Para. 4.01 (viii)).

F. Disbursements

2.22 Loan funds will be disbursed on the following basis:

(a) 100% of foreign expenditures for strengthening andimprovement of roads, if procured from abroad; 60%of expenditures, excluding land acquisition, ifprocured locally;

(b) 65% of expenditures for improvement to MOW's mainworkshop;

(c) 65% of expenditures, excluding land acquisition, forconstruction of vehicle inspection center;

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(d) 100% of foreign expenditures for procurement of roadpatching equipment and portable weigh-bridge, ifprocured from abroad; 80% of expenditures ifprocured locally; and

(e) 100% of foreign expeniditure and 80% of localexpenditures for consultant services.

2.23 An estimated disbursement schedule is set out in Table 2.3.Since this is the Bank's first highway project in Mauritius, there is nodisbursement profile. The disbursement estimates are based on the projectimplementation schedule (Chart II) and the typical disbursement profile forthe highway subsector in the Eastern Africa Region, as well as in one ofthe other countries of the Region namely, Swaziland. The disbursementschedule is shorter than the typical profile for the Region, but compareswell with that for Swaziland where the resource situation is similar.

Table 2.3

Estimated Schedule of Disbursements

Fiscal Year Cumulativeand End of DisbursementsQuarter at End of Quarter

(US $ '000)1984

December 31, 1983 400March 31, 1984 850June 30, 1984 1,400

1985

September 30, 1984 2,000December 31, 1984 3,000March 31, 1985 4,500June 30, 1985 6,000

P 1986

September 30, 1985 7,500December 31, 1985 9,000March 31, 1986 10,500June 30, 1986 12,000

1987

September 30, 1986 13,500December 31, 1986 14,500March 31, 1987 15,200

Closing Date: June 30, 1987

Mission Estimates

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G, Accounting, Auditing & Reporting Requirements

2.24 Project accounts will be maintained by Finance Section of the MOWwith separate accounts for each component and will be available for

inspection by the Bank supervision missions. The MOW's accounts areaudited regularly by Government auditors under the supervision of the

Director of Audit who submits his report to the Parliament. Duringnegotiations, it was agreed with Government that all project accounts willbe audited by the Director of Audit according to generally acceptedaccounting procedures and that the Government will submit certified copiesof such accounts and an annual audit report to the Bank not later than sixmonths after the end of each fiscal year (Para. 4.01 (ix)).

2.25 During negotiations, the Government and the Bank agreed onprogress reporting requirements (Annex IV), which include indices formeasuring implementation progress, and submission of a project completionreport in a form satisfactory to the Bank not later than six months afterthe closing date of the Loan account (Para. 4.01 (x)).

H. Environmental Aspects

2.26 The project is not likely to have any adverse effect on theenvironment. The project roads would follow the existing alignments, andno disturbance to land use should occur. In fact, improved drainage alongthe roads will benefit adjacent areas.

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III. ECONOMIC EVALUATION

A. General

3.01 The major thrust of Mauritius' Public Sector Investment Program(1982/83-1986/87) is to preserve past and existing investments in theeconomy. For the road subsector this translates into the rehabilitationand maintenance of existing roads. Hence, the single largest plannedinvestment in the road subsector (about 50% of planned investments) is theproposed strengthening and improvement of main roads in the country. Theroads included under the proposed project, about 75 km in total, are amongthe most important in the country's economy and carry heavy trafficvolumes. Due to the poor design and construction standards and lack ofdrainage, costly repairs and overlays would have to be carried out on theseroads to keep them usable. The proposed road works are expected to yieldan overall economic rate of return (ERR) of about 40%.

3.02 For other project components, making about 15% of the totalproject costs, no ERR has been calculated. It is expected that thebenefits arising from improvement to the MOW's main workshop andprocurement of road patching equipment will produce sizeable benefits,although difficult to quantify, to road maintenance operations on theheavily trafficked road network. The construction of a new vehicleinspection center and procurement of portable weigh-bridges will bebeneficial to road safety and to the life and state of the road network.

Areas of Influence of the Project Roads

3.03 Four roads, about 75 km in total, are included for strengtheningand improvement: (i) Port Louis-Mahebourg (Plaisance Airport); (ii) PortLouis-The Mount; (iii) Plaine des Papayes; and (iv) Quartier Militaire-BelAir. The main traffic on all of them is the transport of sugarcane tosugar factories and thereafter transport of sugar to the port for export.The first road is the major trunk road in the country, linking the northernand southeastern parts of the island and connecting the capital with theonly international airport. The other two main roads provide accessbetween the capital and the economically active northern part of theisland, where a number of agro-industrial and textile enterprises andtourist resorts are located. The last one, Quartier Militaire-Bel AirRoad, provides communication between the central and eastern parts of theisland, where a number of tourist hotels are situated; the road also goesthrough a fruit production zone and serves a textile factory.

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3.04 The selected roads directly serve heavily populated areas; totalpopulation in the immediate zone of the four roads is estimated at about445,000 or about 47% of the total population on the island. The roads alsoserve eight out of 21 sugar factories directly and another five factoriesin the wider vicinity. Average annual total sugar transport on the fourroads is estimated at about 350,000 tons, or about one-half of the totalsugar production on the island. In addition, food crop production is alsosignificant around the southern part of the Port Louis-Mahebourg road andin the vicinity of the two roads in the north.

B. Main Benefits and Beneficiaries

3.05 The main benefits to be derived from the project will be: (a)elimination of costly repairs and overlays otherwise necessary to keep theroads usable (Para. 3.07); (b) savings in vehicle operating costs (Para.3.10), and (c) time savings on two heavily trafficked urban roads.Additional benefits will result from improved road safety but because theyare difficult to quantify they have not been included in calculation of theERRs.

3.06 The major direct beneficiaries of the reduced transport costs andimproved road safety will be passenger car owners and truck and bus owners/operators. Since the road transport industry is highly competitive, it isexpected that a high proportion of these benefits will be passed on totransport users -- urban/rural population and to the consumers of goodsbeing transported in the roads' zones. The Government will also benefitfrom savings from deferred, costly road reconstruction.

C. Economic Analysis

3.07 The economic analysis was carried out by comparing "with" and"without" the project cases. In the "without" the project case, it isassumed that the roads will remain usable provided costly overlays in theform of single and/or double grouting are laid at five to seven yearintervals depending on the road condition and traffic volume. It has beenassumed further that, even with such treatment, the condition of the roadswhich are already of low standards will continue to deteriorate overtime."With" the project case it is assumed that significant improvements to theroads (pavement strengthening, improvement of geometrics, widening/reconstruction of shoulders and improvement of roadside drains) will bemade not only to eliminate the need for costly overlays but also to protectthe capital investments in roads and to reduce VOCs over the estimated20-year life of the works. A

Traffic and Vehicle Operating Costs

3.08 Traffic counts on the project roads have systematically beencarried out since 1977. The traffic volumes are generally very high. In1982, average annual daily traffic (AADT) on the Port Louis-Mahebourg roadvaried between 2,300-9,750 vehicles, of which 20-30% were heavy vehicles.On the Port Louis-The Mount Road the traffic was 3,430 vpd with 35% heavyvehicles. The Plaine des Papayes road handled 1,320 vpd with 20% heavy

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vehicles, while the lowest traffic was recorded on Quartier Militaire-BelAir road -- about 870 vpd with 30% heavy vehicles. Table 3.1 below showsthe estimated traffic levels in 1986, the year of reopening the projectroads to normal traffic.

Table 3.1

Estimated AADT on the Project Roads in 1986

Med. HeavyCars Pickups Trucks Trucks Buses Total

1. Port Louis - Mahebourg

i) Fort Louis - St. Jean 7,130 753 340 42 1,820 10,085ii) Phoenix - Curepipe 3,980 490 415 30 1,100 6,015iii) Nouvelle France - Plaisance 2,100 105 270 90 430 2,995

Airport

2. Port Louis - The Mount 1,860 485 355 75 775 3,550

3. Plane des Papayes 905 70 145 20 220 1,360

4. Quartier Militaire - Bel Air 580 50 145 25 95 895

Source: Feasibility Study Report,Mauritius, Consultants BCEOM-LMP, November 1982.

3.09 Since no generated/induced traffic is anticipated to develop onthe project roads (the roads have been paved for decades), the expectedtraffic growth is limited to the existing normal traffic only. The growthafter 1986 was estimated on the basis of the past traffic development onthe roads, vehicle fleet growth, fuel consumption and population growth.The moderate growth rates forecasted in the economic analysis are also

influenced by an expected limited future growth of the economy, and sugarindustry in particular. Passenger transport (cars and buses) are expectedto grow at 3% per annum, pickups and medium trucks at 4%, and heavy trucksand trailers at 2% and 1%, respectively over the economic life of theroadworks. The sensitivity analysis has taken even more conservativeassumptions (Annex V): 2% growth for pickups and medium trucks and only 1%growth per year for other vehicles.

3.10 Vehicle operating costs (VOC) on the project roads have beenestimated separately for each road, and for every year, taking into accountthe condition of road surface, the expected deterioration from climate andtraffic, as well as the maintenance operation carried out on the roads.VOCs were calculated by consultants using Highway Design and MaintenanceStandards Model (HDM). Six typical vehicle groups were selected (cars,vans, medium trucks, heavy trucks, trailers and buses) and unit VOC savingsbased on "with" and "without" the project scenarios range in average20-30%. During the estimated economic life, VOCs are, however, expected toincrease gradually -- at a higher pace for the "without" the project case.Savings in VOC were calculated for normal traffic only.

- 30 -

Economic Return

3.11 The economic analysis was carried out in late 1982 prices, net oftaxes and duties. The major assumptions and inputs in the 20-Yearcost/benefit analysis are presented in Annex V. The costs included in theeconomic evaluation comprise: (i) cost of civil works (strengthening andimprovement) in 1984-85; (ii) 10% physical contingencies; (iii) cost ofconstruction supervision; (iv) cost of routine and periodic maintenance onthe project roads. The benefits considered in the economic analysisinclude: (i) saving in VOCs for the normal traffic growing at modest rates(Para. 3.09); (ii) savings in avoiding costly repair and overlays (Para.3.07); and time saving benefits (considered .in sensitivity analysis only).

3.12 The cost/benefit analysis based upon the assumptions explained inParas. 3.07-3.10 shows that the proposed civil works are economically well

justified. The combined ERR for all the project roads is estimated atabout 40%; ERR for individual roads range from 14-87% (Table 3.2) andexceed the estimated opportunity cost of capital in Mauritius estimated atabout 10%.

Table 3.2

Economic Rates of Return for Road Strengthening/Improvement

ERR (%) Length (km)

1. Port Louis -Mahebourg Road(Plaisance Airport)(i) Port Louis - St. Jean 87 9.6(ii) Phoenix - Curepipe 65 7.2(iii) Nouvelle France - Plaisance 32 14.3

Airport

2. Port Louis - The Mount Road 38 11.0

3. Plaine des Papayes Road 16 10.1

4. Quartier Militaire - Bel Air Road 14 22.9

All Roads 40 75.1

D. Sensitivity and Risks

3.13 Some variables determining the estimated ERRs could change in thecourse of project implementation due to presently unforeseen development,e.g. cost of civil works may increase, savings on VOCs may be lower thananticipated, and the traffic growth could be slower than envisaged. Asensitivity analysis was therefore carried out on these critical factors(Annex V). With a cost increase of 20%, ERRs for the project roads willrange between 11% and 73%; if a flat reduction of saving in VOCs by 20% iscombined with cost increase of 10%, ERRs would then dip to a 9-64% range.Assuming slower traffic growth, the EERs will be between 13% and 84%.

- 31 -

3.14 There are no major risks associated with the project. However,some delays might occur in taking actual possession of land along the roadsalready part of the road reserve. Little additional land is likely to beneeded. The project timetable takes into account the time that may beneeded for the Government to take possession of this land. To ensure thatany such delays are kept to a minimum and do not hinder projectimplementation, a condition of effectiveness of the proposed loan will bethat all legal and administartive steps to ensure access to the roadreserve and other land required for the project have been taken (Para.2.08). The project will be the Bank's first involvement in the Mauritiushighway subsector, and hence, more frequent supervision by the Bank wouldbe required in the early stages of project implementation.

- 32 -

IV. AGREEMENTS REACHEDAND RECOMMENDATIONS

4.01 During negotiations, agreement was reached with Government on thefollowing items:

(i) agree to exchange views with the Bank on the study'sfindings and take follow up action satisfactory tothe Bank (Para. 1.21);

(ii) adequate regulations for vehicle weight, axle-load anddimensions limitations satisfactory to the Bank will be madeand enforced by December 31, 1984 (Para.1.23);

(iii) a planning unit with such organization, functions and staffas shall be satisfactory to the Government and the Bank willbe established in the MOW by December 31, 1983 (Para. 1.31);

(iv) annual budgetary allocation for road maintenance to the TDfor FY 1984-86 will be at least Rs 15 million (US$ 1.36million equivalent) in 1983 prices, and that not later thanfour months before the beginning of each fiscal year theGovernment shall, until the completion of the project,review with the Bank the budgetary requirements and theproposed budgetary allocation for road maintenance (Para.1.38);

(v) road works will be procured under unit price contractsthrough international competitive bidding in accordance withthe Bank "Guidelines for Procurement" (Para. 2.20);

(vi) road patching equipment and portable weigh-bridges will beprocured after calling competitive quotations fromestablished suppliers within the country and abroad (Para.2.20);

(vii) consultants for construction supervision will be employed inaccordance with the Bank "Guidelines for the use ofConsultants" (Para. 2.20);

(viii) a project implementation schedule (Para. 2.21).

(ix) project accounts will be audited by the Director of Audit,and certified copies of such accounts and an annual auditreport will be submitted to the Bank not later than sixmonths after the end of each fiscal year (Para. 2.24); and

(x) progress reporting requirements and the submission of aproject completion report (Para. 2.25).

- 33 -

4.02 It will be a condition of Loan effectiveness that all legal andadministrative steps required to ensure access to the road reserve and

other land required for the project have been taken (Para. 2.08).

4.03 With the agreements and under the conditions indicated above, theproject is suitable for a Bank loan of US$15.2 million to the Government ofMauritius on standard terms.

- 34 -

Annex IPage 1 of 4Table 1

MAURITIUSHIGHWAYS PROJECT

Traffic Statistics and Fuel Consumption Data

Traffic in Port Louis(in metric tons)

1977/78 1978/79 1979/80 1980/81 1981/82

1. Imports- bagged cargo 162,348 132,016 156,205 129,590 103,360- bulk cargo 687,660 691,159 662,498 602,783 579,630- general cargo 189,192 179,350 156,075 101,837 72,723- containerised

cargo 39,360 67,627 122,627 151,929 139,256- other 51,147 22,109 30,063 15,708 15,319

Total 1,129,707 1,092,260 1,127,468 1,001,847 910,288

2. Exports- bagged cargo 637,826 588,443 613,825 18,583- bulk cargo 245,962 248,331 257,611 580,012 714,158- general cargo 24,091 7,022 2,538 1,798 2,360- containerised

cargo 15,322 27,950 45,325 42,162 52,89214,112 26,342 34,503 17,220 17,821

Total 937,313 898,088 953,802 659,775 787,231

Grand Total 2,067,020 1,990,348 2,081,270 1,661,622 1,697,519

Annual Growth Rate 1977/78 - 1981/82: - 4.9%

Source: Mauritius Marine Authority,Port Louis, December 1982

- 35 -

Annex IPage 2 of 4Table 2

Traffic at Plaisance Airport

AnnualGrowth

1977 1978 1979 1980 1981 Rate

1. Aircraft Movement(landings) 2,208 2,308 2,816 3,412 3,196 9.7

2. Passenger Traffic(arrivals anddepartures) 299,308 316,312 362,000 322,000 338,000 3.2

3. Air Freight (in tons)(loaded and unloaded)

13,681 6,746 7,809 7,376 7,241 -14.9

Source: Ministry of Economic Planning and Development,Port Louis, December 1982.

- 36 -Annex I

Page 3 of 'Table j^

Fuel Consumption(in 000' litres)

Super and Regular 1/ Diesel Fuel

1977 61,150 71,5601978 66,510 67,5851979 64,905 73,4301980 53,240 68,0101981 48,040 77,461

Average AnnualGrowth (in %): -6.0% 2.0%

1/ About 80% goes to Premium and 20% to Regular gasoline.

Source: Central Statistical Office, MEPDPort Louis, December 1982

1

- 37 -

Annex IPage 4 of 4Table 4

Road Traffic Accidents and Casualties

1977 1978 1979 1980 1981

Road traffic accidents

Number 5,065 7,412 7,820 5,457 5,352Number per 100,000of population 574 827 858 589 570

Motor vehicle accidents

Number of motor vehicles involved 5,526 6,954 8,019 6,294 5,967Number per 100,000of population 627 776 880 679 635

Number per 1,000 registeredmotor vehicles 99 111 119 91 86

Total Casualties 3,195 4,040 4,266 2,068 3,149

Nature of casualty

Killed 135 132 137 124 108Seriously injured 275 274 260 127 269Slightly injured 2,785 3,634 3,869 1,817 2,772

Casualties by class of road users

Pedestrians 1,207 1,548 1,602 592 1,066Pedal cyclists 308 383 545 340 384Passengers 838 946 1,021 586 839Drivers or riders of motor vehicles 842 1,163 1,098 550 860

Source: Bi-Annual Digest of Statistics, December 1981,Central Statistical Office, Port Louis

- 38 -

ANNEX II

MauritiusHighways Project

Investments in the Transport Sectora) Actual Investments in the Transport Sector 1977/78 - 1981/82 1/

(in Rs 000')

Share ofForeign

1977/78 1978/79 1979/80 1980/81 1981/82 Total Share Financing

Roads and Bridges 2,905 14,920 25,042 41,950 38,108 122,925 45.2% 81%Port 5,500 48,700 28,700 10,100 21,300 114,300 41.9% 75%Civil Aviation 6,640 5,640 13,770 3,690 5,510 35,250 12.9% 25%

Total 2/ 15,045 69,260 67,512 55,740 64,918 272,475 100%(US $ million)3 / (1.88) (8.65) (6.75) (5.57) (6.49) (29.34)

b) Planned Investments for the Transport Sector 1982/83 - 1986/87 1I(in Rs 000')

Share ofForeign

1982/83 1983/84 1984/85 1985/86 1986/87 Total Share Financing

Roads 20,600 143,800 153,200 89,000 24,000 430,600 46% 72%Port 25,200 46,400 16,500 22,800 - 110,900 12% 79%Civil Aviation 39,800 _ 1,700 101,100 75,600 75,000 393,200 42% 70%

Total 4/ 85,600 291,900 270,800 187,400 99,000 934,700 100%(US $ million) (7.78) (26.54) (24.62) (17.04) (9.00) (84.98)

1/ In current prices; part of the Public Sector Investment Program for the wholeeconcomy.

2/ For the five-year period foreign financing was about Rs 194 million or 71%, andlocal financing was about Rs 78 million or 29%.

3/ Exchange rate: US$1.00 = Rs 8.0; US$1.00 = Rs 10.0

4/ For the next five-year period about Rs 672 million or 72% is envisaged to befinanced by external sources and about Rs 263 million or 28% by the Government.

Source: Ministry of Economic Planning and Development, December 1982.

- 39 -

ANNEX III

MAURITIUS

HIGHWAYS PROJECT

Equipment to be Purchased

Table 1

Road Maintenance Equipment

Unit Cost Unit CostItem Number Local Foreign Local Foreign

-RS '000

Towed patching equipmentwith self heating device,adjustable spray barand hand sprayer (bindertank capacity 800-1000 litres) 10 7 133 70 1,330

Pedestrian controlleddouble drum vibratoryroller (800-1,000 kg) 10 4 76 40 760

110 2,090Spare Parts (10%) 11 209

121 2,299

On Rounding (120) (2,300)

Table 2

Portable Weigh-Bridges

Portable Weigh-bridges 3 8 152 24 45624 456

Spare Parts (10%) 2 462~6 502

On Rounding (30) (500)

Source: Technical Division

- 40 - ANNEX IV

MAURITIUSHIGHWAYS PROJECT

PROGRESS REPORTING REQUIREMENTS

Progress Reports shall be submitted to the Bank quarterly intriplicate, no later than one calendar month after the end of the quarter.The first report should cover the period ending December 31, 1983.

2. The Report should contain the following information:

i. General Information: (This should refer to ProjectIndices shown in the Attachment)

a) the physical progress accomplished duringthe reporting period;

b) actual or expected deviations from theproject implementation schedule;

c) actual or expected difficulties or delaysand their effect on the implementationschedule and the steps planned or taken toovercome the difficulties and avoiddelays;

d) excepted changes in the completion datesof the project;

e) key personnel changes in the staffs of theTD, consultants or contractors;

f) matters which may affect the project cost;and

g) any development activity likely to affectthe economic viability of the projectcomponents.

ii. A bar-type progress chart, based on the projectimplementation schedule, showing the progress in eachproject component.

iii. A financial statement set out in tabular form which showsfor each of the project components:

a) original estimated cost;

b) revised cost, if appropriate;

c) actual expenditure;

d) projected expenditures; and

e) actual withdrawals and projected withdrawals from theLoan Account.

iv. The status of action on each of the covenants of the LoanAgreement.

- 4L1 -ANNEX IVAttachment

PRWOECT MONITORING INDICESas of (date)

CorrectiveActual Actionas X of Reasons for Planned

Netimated Actual Estimated Divergence or Taken

I. Road Strengtheningand Improvement

1. Preliminaries to mobilization (months)2. Right-of-way acquisition (km)

3. Bituminous macadam base (km)4. Crusher-run base (km)5. Asphaltic concrete wearing course (km)6. Surface dressing (km)7. Shoulders and roadside drains (km)8. Ancillary works (km)9. Payments to Contractors

II. Road Maintenance Equipmentand Portable Weigh-bridges

1. Preparation of specifications (months)2. Calling and submission of quotations (months)3. Contract award (months)4. Delivery of items (Nos.)5. Payment to suppliers

III. Building Construction

1. Preparation of bidding documents (months)2. Calling and submission of bids (months)3. Evaluation of bids and contract

award (months)4. Construction (months)

IV. Feasibility and DetailedEngineering Studies

1. Preliminaries to Start (months)2. Inception Report (date)3. Draft final report (date)4. Final report (date)5. Payments to consultants

MAURITIUS1G116WAYS PROJECT

Economic Evaluation of Strengthening and Improvement of Roadsl/

1. Roads Port louirs-St. Jean Phoenix-Curepipe Nouvelle France-Plaisance Port Louis-The Nouat Plaines des Papayes Quart.Militaire-Bel Air

2. Length (km) 9.6 7.2 14.3 11.0 10.1 22.9

3. Traffic Forecast (AADT)

1986: Total 10,085 6,015 2,995 3,550 1,360 895Light 7,883 4,470 2,205 2,345 975 630Heavy 2,202 1,545 790 1,205 395 265

1995: Total 13,700 8,250 4,065 4,880 1,855 1,120Light f0l70 6,080 2,980 3,220 1,320 850Heavy 3,000 2,125 1,085 1,660 535 370

4. Construction Costs2

/(in Rs 'OO) 23,020 15,417 43,582 27,472 22,092 45,436

5. Total Benefits (First Year) 3/

(in Rs '000) 18,215 11,414 12,791 11,631 2,687 5,180

6. Traffic Growth (per year)4

/ (i) Passenger cars (ii) Vans (iii) Medium Trucks (iv) Heavy Trucks (v) Trailers (vi) Busesa)M 196-00 (basic) 3% 4 "Z 2" "

b) 1986-2005 (alternative) 1% 2% 2% 1% 1% 1%

7. Vehicle Operating Costs 5/

(in Rs)a) 'without" the project 1.48-1.73 1.94-2.37 4.04-4.62 5.98-7.14 11.75-13.54 4.89-5.84b) 'with" the project 1.20-1.30 1.44-1.64 3.37-3.66 4.62-5.07 9.62-10.24 3.79-4.18

8. Economic Rate of Return6

/a) best estimate 86.7% 65.0% 32.1% 38.4% 16.0% 14.1%b) sensitivity 7/

(i) costs + 2rT% 73% 57% 27% 32% 13% 112(ii) VOC savings - 20% 70% 55% 26% 31% 12% II%

(iii) reduced growth rate 84% 63% 31% 36% 15% 13%(iv) time saving benefits included n.a. 67% n.a. 40% n.a. n.a.(v) combined cost+10%b benefit-20% 64Z 51% 24% 28% 10% 9%

1/ Econoraic analysis was done in late 1982 prices, net of taxes and duties; H.D.M. modelwas applied.

2/ Costs include 10% physical contingencies and estimated costs for works supervision.3/ The benefits include savings in VOC and the difference in road maintenance costs

"With" atd "wiLhout" the project; no deferred reconstruction costs were considered asbenefits to the project.

4/ Growth of normal traffic only; the results of traffic growth alternatives arepresented in Para. 3.09.

5/ VOC are presented per specific vehicle types in a range -- dependirng on specific roadconditions; the estimates are for 1986 -- first year when the benefits are expected toaccrue; VOC are, however, expected to increase gradually in both cases and that wastaken into account in calculating ERRs.

6/ ERRs were calculated for a 20-year economic life; the overall ERR for the projectroads is estimated at 40.5%; if the costs are increased by 20% and benefits decreasedby 20%, ERR drops to 27%.

71 Sensitivity analysis was also carried out taking into account shadow price of labor; afactor of 0.5 was applied to the market price of local labor; no marked change in ERRswas recorded, however, since shadow pricing reduced simultaneously in a similar wayboth benefits (road maintenance cost savings and VOC savings) and construction costs.Time saving benefits were applied to two rods in urban areas only; passenger timevalue was based on average basic wages and salaries (Rs 2-5 per hour); in aggregatethese benefits made only a marginal impact on ERRs.

Source: Consultants BCEOM-L1iP Study Reports and mission estimates.

- 43 - ANNEX VI

MAURITIUS

HIGHiAYS PROJECT

Related Documents and Data Available in Project File

I. Reports Relating to Transportation

(1) Road Program, MOW, Mauritius, April 1978

(2) Efficiency and Economics of Bus Industry,Mauritius, March 1978

(3) Airport Development and Future Economic Growth, MED, July 1982and Drawings

II. Studies Relating to Project

(1) Feasibility study Report, November 1982,volumes 1-2, BCEOM-LMP

(2) Detailed Engineering Report, April 1983, Volumes 1-5, BCEOX-LMP

(3) Benefit/Cost Stream data for Project Roads

(4) Upgrading of Plaine Lauzum Workshop (drawings)

(5) Vehicle Inspection Center, Phoenix (drawings)

III. Miscellaneous

(1) Omnibus Report of the Ministry of Works(No 19 of 1981)

MAURITIIIS

HIGHWAYS PROJECT

ORGANIZATION OF ROAD SECTiON OFTECtNICAL DIVISION

UNDER MINISTRY OF WORKS

PERXANENT SECRETARY

| _ ~~~~~~OTHER DIVISIONS

rCHIEF ENGINEER j

| ECHtNIGAL DISO

ff ¢-11 -F-- PRINCIPAL ENGINEER PRINCIPAL ENGINEER PRINCIPAL ENGINEER PRINCIPAL ENINE MECHANICAL PRINCIPAL ENGINEER YRINCIPAL QUANTITy PRINCiPAL

ROADS BUILDINGS MATERIALS LABORATORY TRAFFIC ENGINEER SEWERAGE SURVEYOR ARCUI 1CT ^

ENGINhEER (CIVIL) ENGINEER (CIVIL) ENGINEER (CIVIL) ENGINEER (CIVIL) ENGINEER (CIVIL)NORTH SOUTH J | CENTRAL EAST PORT LOUIS

I I I I ,. I SENIOR SENIOR CEIEF CRIEF CHIEF 4-

INSPECTOR RIB INSPECTO R/ R/B INSPECTOR R/B INSPECTOR R/B 4>

INSPECTORS R/B INSPECTORS RB INSPECTORS R/B INSPECTORS R/B lNSPECTOYS k/B

R - FoadsB - Buildings

Source: Technical Division, December 1982

MAURITIUS

HIGHWAYS PROJfCT

PROJECT IMPLEMENTATION SCHEDULE

1983 1984 1985 1986

MAIN ACTIVITIES RESPONSIBILlTY

JFY AMJJASONDJFMHAMJ JASO NDJFMAMJ JASONDJFMAXJJASO DI

BOARD PRESENTATION BANK *

SIGNII; OF LOAN AGREEMENT GOVT./BANK *

LOAN LEFECT7VrNXESS GOVT. *

1 . ROAD STTiENGTftENINGAND IMPROVRŽIENT

PREQUALIFICATIONOF CONTRACI'ORS GOVT. lCONSULTANTS _

BIDDING CONTRACTORS __

BID EVALUATION,REVIRW & APPROVAL GOVT./BAAA(

CONTRACT AWARll GOVT. *

CONSTRUCTION CONTRACTOR(S)

2. CONSTRUCTIONSUPERVISION CONSULTANT

3. INFROVEEtNT TO HO'S

WORKSHOP

PREQUALIFICATIONOF CONTRACTORS GOVT.

BIDDIN(; CONTRACTORS __ U

BID EVALUATION,

REVIEW & APPROVAL GOVT./BANX

CONIPRCT AWARD GOVT.

CONSTPtCTION CONTRACTOR

4. CONSTRUCTION OF VEfICLEINSPECTION CENTER

PREOUALIFICATION OFCO"TRACTORS GOVT.

BIDDING CONTRACTORS

BID EVALUATION,REVIEW & APPROVAL GOVT./BANK

CONTRACT AWARD GOVT. *

CONSI RUCTION CONTRACTOR

5. PROCURM,ET OF ROADPATCHING EQUIPMENT &PORTABLE WEIGH-BRIDGES

PREPARATION OFSPECIFICATIONS GOVT.

CALLING OF QUOTATIONSTO AWARD OF CONTRACT GOVT.DELIVERY SUPPLIER

ciF

MAURITIUoS

FIRST GH-GWAY PROJECTRoad Network :

FIRST HIGHWAY PRSJECS

St - t St;y-

r ntratI-at Am- orDistrict BAida,etdrs , / oe Eprce4A

Int-sna -on R-Aad-r

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:I, ,UV ' LLE = =

4 i i i ! l s J > \ o V gl~~~~UlAIE ,2<'z

i = S g 1. Gnznde R via re 4o re S -~ < \ \ \ 8;iX o ujMAHEBOURG g

i ;- S,___ oi \9 B f h

.g'S, , ,,.~~~~~~~C

| X - 5 I /~~~~ qx, A.H zm''.'L*

[ D i s J I-VannRh , g- Motelr , ' : *rGlerzt; f~~~~~~~~~I