Report No. 1557b-CO V%&

Colombia: Appraisal of a FILE COPYSeventh Highway ProjectJune 16, 1977

Latin America and the Caribbean Projects Department

FOR OFFICIAL USE ONLY

Document of the World Bank

This document has a restricted distribution and may be used by recipientsonly in the performance of their official duties. Its contents may nototherwise be disclosed without World Bank authorization.

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Currency Equivalents

Currency Unit - Peso 4(C9l$1US$1 (June 1977) = Col$ 36.80US$1 million = Col$ 36.8 millionCol$ 1 million = US$27,174

Colombian Fiscal Year

January 1 to December 31

System of Weights and Measures: Metric

Metric British/US Equivalent1 kilometer (km) = 0.62 mile (mi)1 meter (m) = 3.28 feet (ft)1 metric ton (m ton) = 0.98 long ton (imperial)

- 1.10 short tons (USA)1 liter = 0.22 gallon (imperial)

= 0.26 gallon (imperial)

Abbreviations and Acronyms

ER - Economic Rate of ReturnFONADE - Fondo Nacional de Desarollo EconomicoFYB - First Year BenefitGDP - Gross Domestic ProductIDB - Interamerican Development BankMOP - Ministerio de Obras Publicas (up to January 1976)MOPT - Ministerio de Obras Publicas y Transporte (after January 1976)NPO - National Planning OfficeUNIDO - United Nations Industrial Development OrganizationVOC - Vehicle Operating Costs

1-0k OFFICIAL USE ONLY

COLOMBIA

APPRAISAL OF A SEVENTH HIGHWAY PROJECT

TABLE OF CONTENTS

Page No.

SUMMARY AND CONCLUSIONS ........... ..................................... . i

1. INTRODUCTION AND BACKGROUND . ................. a. ... ............. 1

A* General .......................................................... 1B. Past Highway Projects ......... . . . . . . .............................. .... . 1C. The Sixth Highway Project .......... . . . ...................... . 2D. The Maintenance Problem ........ . . . . . . ............................. .. . 2E. Preparation of the Proposed Seventh Highway Project ..... 3

2. THE TRANSPORT SYSTEM ........................................ 5

A. General ............... oo . . 5B. Highways ............ 0000*0. .... 00..... 5C. Railways .. oooo............ 5Do Inland Waterways ... ......... .. ..0..-.00 .6

E. Ports.. ..................... 6F. Civil Aviation .... ........... o.o... .oo.o.oo... 7G. Investments, Regulation and Coordination .................. 7

3. THE HIGHWAY SUBSECTOR .. ..... o ...... ......... ... . 8

A. The Network ..........-.................................... 8B. Road Transport and Traffic oo.....o ............ ..... 10C. Highway Administration . ..... . . .................. . . . . . .. . . 10D. Highway Planning ... ... ............. .. . . . .. 11E. Highway Financing and Road User Charges ....... . 12F. Highway Engineering . ... .. o..oo. ....... .. . .. . . .. .......... 13G. Highway Construction . -.-. . . . . . . . . . . .. . . . .... o. . ...... .. 13H. Highway Maintenance ............... o.. ... . ... 14

I. Future Level of Highway Maintenance Expenditures .... o..... 15

This Appraisal Report has been prepared by Messrs. Schulz (Economist) andMorris (Engineer), and has been edited by Miss Virginia Foster.

This document h as retricted distribution and may be used by recipients only in the perfomanceof their official dutie. Its contents may not otherwie be disclosd without Wofid Bank authoriztion.

TABLE OF CONTENTS (Continued)

Page No.

4. THE PROJECT ................................................... 17

A. Objectives ............................................... 17B. General Description ...................................... 17C. Road Rehabilitation Program .............................. 18D. Vehicle Weight Control Program .............eg ...........r.. 20E. Highway Maintenance Program ....... ....................... 21F. Transport Sector Management .............................. 23G. Logistic Support for Project Execution ................ ... 23H. Cost Estimates and Financing ............................. 24I. Disbursements ............................................ 26J. Execution and Procurement ................................ 26K. Project Risks ......................................... 28

5. ECONOMIC ASSESSMENT .......................................... 28

A. General ............................................... 28B. Road Rehabilitation Program ............................. 29C. Highway Maintenance Program ....... ...................... 31D. Vehicle Weight Control Program .......................... 32

6. AGREEMENTS REACHED AND RECOMMENDATION ................ ...... 33

TABLES

1. IBRD-IDA Involvement in Colombia Transport2. Public Sector Investment in Transport (1966-1975)3. National Highway Network (1965-1975) - Total Road System (December 1975)4. Road Vehicle Fleet (1963-1976)5. Estimated ADT at Select Points of the Road Network (1971-1975)6. National Highway Fund - Revenues (1970-1976)7. National Highway Fund - Revenues and Expenditures (1970-1976)8. National Highway Fund - Expenditures (1970-1976)9. Estimate of Future Revenues and Expenditures (1977-1981)10. Evolution and Composition of Regular Gasoline Prices (1975-1977)11. History of Construction and Periodic Maintenance on Sections

for Rehabilitation12. Road Rehabilitation Program - Economic Costs, Financial Costs and

Execution Schedule13. Preliminary Four-Year Equipment Replacement Program14. Estimated Schedule of Disbursements15. Details of Road Rehabilitation Program16. Economic Vehicle Operating Costs17. Economic Evaluation of Road Rehabilitation Program18. Highway Maintenance Program - With and Without Program Maintenance

and User Costs of Network19. Highway Maintenance Program - Summary of Economic Assessment20. Estimated Yearly Maintenance Expenditures (1978-1987)

TABLE OF CONTENTS (Continued)

ANNEXES

1. Terms of Reference for a Vehicle Weight Control Study2. Road Rehabilitation Program3. Outline Terms of Reference for the Technical Assistance Programs4. Terms of Reference for a Study of Locally Available Road Construction

and Maintenance Materials5. Project Indicators6. Details of the Economic Assessment

CHART S

1. MOPT Organization Chart2. Consulting Services and Technical Assistance Programs3. Project Implementation Schedule

MAP

IBRD 12553 - Colombia - Seventh Highway Project

COLOMBIA

SEVENTH HIGHWAY PROJECT

SUMMARY AND CONCLUSIONS

i. Colombia's transport system carries not only traditional primarysector production but also a heavy load of non-traditional agricultural aswell as manufactured products. These goods are the mainstay of interregionaltrade in the country, but, most importantly, its exports. Increasingly,manufactured goods--primarily textiles, chemicals, pharmaceuticals, mechanicaland electrical equipment--are playing a larger role in the country's exportsalong with agricultural products, of which coffee represents the largest shareof total merchandise exported. To move these goods both to internal consumptioncenters and to the ports, a system of primary trunk highways has been developedover the last two-and-one-half decades along with a rail and inland shippingnetwork. It is the highways, however, which form a truly national integratednetwork; the railways are truncated, and inland shipping operates mostly alongthe Magdalena River. The trunk highway network, which covers the populatedarea of the country, has reached a stage of development where a shift fromexpansion to conservation is necessary. Most of the roads in the trunknetwork were paved in the 1950's and are now reaching the point where rapiddeterioration is either already occurring or about to happen if a program ofoverlays and strengthening is not instituted. The need for improved mainte-nance is evident, and great losses would affect both internal and export tradeif it is not brought about within the next few years.

ii. Recognizing the extent of the situation, the Government of Colombiahas requested the Bank to help finance a project that would include (a) a RoadRehabilitation Program, comprising about 978 km of trunk paved roads; (b) aVehicle Weight Control Program, comprising the installation of about 20 weigh-ing stations; (c) a Highway Maintenance Program, comprising the purchase ofequipment and spare parts and technical assistance to improve the managementof the maintenance fleet and the programming of road maintenance operations;(d) technical assistance to improve sector management; and (e) provisionfor logistic support for the execution of the project.

iii. The project would provide for the rehabilitation of importantsections of the trunk highway network, with traffic in the 1,200 to 6,000vehicles-per-day range, where the level of deterioration is beyond repair withnormal maintenance operations. The Vehicle Weight Control Program would pre-vent further acceleration of pavement deterioration due to truck overloading.In addition, the project also includes a number of corrective measures aimedat the most obvious deficiencies of the present maintenance system. It wouldprovide for systematic renewal of the maintenance fleet and improved fleetmanagement and maintenance procedures, thereby increasing the availability ofequipment, which is a basic condition for increased efficiency.

iv. Although the project is aimed primarily at a more efficient use ofthe resources devoted to maintenance, it would have to be accompanied by sub-stantial increases in budgetary appropriations for spare parts, equipment

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renewal, materials and periodic overlays and strengthening of the nationalhighways. These increases have been discussed with the Government and wereagreed upon during negotiations. They are well justified compared with theincreases in transport costs and future rehabilitation requirements whichwould arise if the present situation is allowed to persist. Based on vehicleoperating cost savings, which is the only quantified benefit against whichproject investments have been assessed, the proposed project is well justified,with an average weighted rate of return of over 90%.

v. Total project cost is US$153.75 million equivalent, of which US$90.75million (59%) is the foreign exchange component and US$90.0 million is to befinanced by the proposed Bank loan. The balance of project costs and interestduring construction, as well as agreed increases in recurrent highway mainte-nance expenditures, would be financed by the National Highway Fund supplemented,as necessary, by Government contributions.

vi. Project execution would extend over the period 1977-1981 under theresponsibility of the Ministry of Public Works and Transport (MOPT). Consul-tants would assist MOPT in construction supervision. Advisory serviceswould be provided under the project to assist in the Maintenance Program andin transport sector management. The Vehicle Weight Control Program and theaccompanying enforcement measures would be defined on the basis of a study nowunder way.

vii. Detailed engineering designs for the Rehabilitation Program have beencompleted and were the basis for cost estimates. Cost estimates for equipmentrenewal and consulting services are based on recent experience and reflectcurrent market conditions. Cost estimates for the weighing stations reflectongoing experience with similar works in Brazil adapted to Colombian conditions.

viii. Procurement of civil works, equipment and spare parts will be throughinternational competitive bidding in accordance with Bank Guidelines. Spareparts of specific makes for existing equipment would be procured directlyfrom established dealers in accordance with a purchase program acceptable tothe Bank.

ix. Retroactive financing of up to US$1.0 million equivalent would be pro-vided for advance works carried out since April 1, 1977 for the stabilization ofcritical sections along two roads.

x. The project, which would represent a major effort to improve roadmaintenance, is technically sound and economically well justified and is suit-able for a Bank loan of US$90 million. The loan would mature in 17 years,including a three-and-one-half-year period of grace.

COLOMBIA

APPRAISAL OF A SEVENTH HIGHWAY PROJECT

1. INTRODUCTION AND BACKGROUND

A. General

1.01 The Bank's involvement in Colombia's transportation sector datesback to 1949 when a General Sector Mission visited the country and foundthe system to be in bad condition, actually beyond repair with normal main-tenance procedures. Since that time, the Bank has lent about US$255 millionin 13 loans to the sector (Table 1); these investments accelerated the cre-ation of an integrated highway network and contributed to the constructionof over 670 km of main railway lines as well as the rehabilitation of existingones. Highway projects have contributed to the maintenance, reconstructionand construction of a national highway network (21,000 km) and to the devel-opment of an improved, but not yet fully effective, highway organization.Railway investments have provided for the construction of the Atlantic Rail-road from La Dorada near Bogota to Fundacion near the port of Santa Marta; theBank has also supported the creation of the organizational and institutionalframework of the Colombian National Railways.

B. Past Highway Projects

1.02 The Bank's contribution to highways falls into two distinct timeperiods: the first, from 1951 to 1961, covering, in general, the execution ofthe First Highway Plan and encompassing the first three highway loans; and asecond, running from 1961 to the present. The First Highway Project, whichwas originally intended to be completed in three years as an emergency program,eventually extended beyond ten years. Successive loans financed unfinishedparts of the preceding ones and included some new works for which only prelimin-ary engineering was available. Since 1961, feasibility studies, includingengineering, have preceded the execution of projects, and international biddingfor unit priced contracts was introduced. Although project preparation is nowgenerally adequate, project implementation still suffers from managerial weak-nesses and financial constraints.

1.03 The first four projects eventually resulted in the constructionor upgrading of 3,200 km of trunk roads. They contributed to the develop-ment of Colombia's trunk road system and to the emergence of road transportas the main means of communication. In 1965, as a condition for extendingthe Closing Date of the Loan and Credit for the Fourth Highway Project, theGovernment agreed to employ management consultants (Comec/Harris-Mexico/USA)to reorganize the Ministry of Public Works (MOP).

1.04 The fifth loan (550-CO, US$17.2 million) was made in 1968 for(a) the construction or reconstruction (with paving) of about 510 km offour national highways; (b) the construction of a major highway bridge atLa Virginia; (c) consulting services for supervising (a) and (b) above, forpreinvestment studies, for detailed engineering of further priority roads,and for assisting the reorganization of MOP based on the Comec/Harris report;

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and (d) the purchase of equipment needed to effect the reorganization. Thegreater length of the reconstruction works was located on the western trunkroad between the industrial center of Medellin and the Atlantic ports. Theseven sections included in the project completed the paving of the road fromCali to the north coast. Progress was slow due to: (a) unusually heavy rainsduring the years 1969 to 1972; (b) the awarding of contracts to inexperiencedand financially weak local firms; and (c) the fact that drainage and earthworkswere underestimated because of inadequate design. The resulting cost overrunscaused two contracts to be rebid because the legal ceiling of 150% of the bidprice had been reached. Another section had to be rebid after the initialcontract was terminated for lack of progress. All works were eventually com-pleted in 1975, three years after the original completion date. The overallconstruction cost exceeded the appraisal estimate by 70% and averaged US$83,000/km, which, nevertheless, was reasonable considering the type of terrain andconditions encountered. The assistance provided under the project for re-organization of MOP had little success. In January 1976, however, MOP wasreorganized into the Ministry of Public Works and Transport (MOPT). Only afew of the recommendations of the Comec/Harris report were acted upon, themost notable being the proposed staffing of the road maintenance organizationin the districts. The Fifth Highway Project, despite its shortcomings, wasan important phase in the development of Colombia's trunk road system andcontributed to the establishment of better engineering practices and improvedcontractural procedures.

C. The Sixth Highway Project

1.05 The sixth highway loan (680-CO, US$32.0 million) was made in 1970for a project consisting of bridge and road construction and the paving ofmain roads. The bridge over the Magdalena river at Barranquilla and the finallink of the new road from Cali to the port of Buenaventura have both beencompleted. The paving program, however, has suffered lengthy delays and largecost overruns. In January 1975, the Bank agreed to reduce its scope from theoriginal 1,618 km to about 874 km. Seven sections out of the 33 remaining inthe program are still under construction, and about 200 km still have to bepaved. The entire program, which was expected to be completed in early 1974,will now continue to mid-1979. Design revisions to allow for stronger pave-ments have caused substantial increases in quantities and in costs. Delays inexecution have been due to lack of local funds, poor contract management andslack supervison and coordination by MOP. In order to improve the performanceof the local consultants engaged in the supervision, a coordinating group wasset up in 1973 within MOP. This improved the situation, but MOP terminatedemployment of the group in December 1974. The functions of the group haverecently been undertaken by MOPT's Special Highway Programs Division, which,although understaffed, is slowly gaining some measure of effectiveness. Theproposed project includes strengthening of this Division.

D. The Maintenance Problem

1.06 During the 25 years in which it has been associated with Colombianhighways, the Bank has been greatly concerned with the maintenance problem.The First Highway Project (Loan 43-CO, 1951) was a road improvement andmaintenance project; the Second Highway Project (Loan 84-CO, 1953) provided

for the purchase of road maintenance and shop equipment and for the appoint-ment of maintenance experts to act as consultants to the Ministry. It wasevident that the benefits of the construction works being undertaken couldnot be achieved unless an effective maintenance program for the whole systemwas in place. Due to the high turnover of Ministry staff, the weakness ofthe field organization, and the low priority and funding given to maintenance,the improvements introduced under the Second Project were short-lived. TheThird Highway Project (Loan 144-CO, 1956) provided for the execution ofasphalt overlays on some roads built under previous Bank projects. However,because of the rapid deterioration of the highways toward the end of the1950's, provision was made in the Fourth Highway Project (Loan 295-CO andCredit 5-CO, 1961) for the purchase of a large fleet of maintenance equipmentand for a reassessment, by consultants, of the Ministry's maintenance organiza-tion and procedures. During negotiations of the Fifth Highway Project (Loan550-CO, 1968), the Government committed itself to implementing the recommen-dations of the Comec/ Harris Study. The present field organization, which isbasically adequate, was established, and, initially, road maintenance improved.However, by the time that the Sixth Highway Project (Loan 680-CO, 1970) wasbeing prepared, the decline had already begun. Under that loan, the Governmentconfirmed previous undertakings to carry out proper maintenance and to provideadequate funds.

1.07 Today's assessment of the maintenance of Colombia's highway networkfollows the familiar pattern: it is still generally inadequate, and a chroniclack of funds prevents it from being improved. An analysis of MOPT's budgetallocation reveals that about 30% of it is devoted to maintenance, but over80% of this allocation is used up in fixed personnel and administrative expen-ditures, leaving a meager US$280 per km per year for running the equipment andfor the purchase of materials and spare parts. Equipment replacement isusually not included in MOPT's budget allocation but is financed out of generalGovernment funds. The appraisal mission estimated that adequate maintenancewould require about US$1,200 per km per year over and above personnel andadministrative costs. This amount would cover the three major deficienciesthat now prevent an adequate maintenance from being carried out, namely:(a) renewing equipment on an annual, recurrent basis; (b) purchasing spareparts to keep the maintenance fleet operational; and (c) purchasing materials(bitumen, fuel, cement, etc.) necessary to execute maintenance works. Therequired increase in the budgetary allocation would be from the present US$41million to about US$67 million per year, including the additional effort nownecessary to make up for past shortages. The proposed project is mainlygeared to help finance this additional effort.

E. Preparation of the Proposed Seventh Highway Project

1.08 The rehabilitation component of the project developed out of a surveycarried out in 1973 by INGEROUTE (France) under the Fifth Highway Project,which showed that about 1,700 km of the then 6,500-km asphalted national high-way network required urgent rehabilitation. Detailed engineering designs wereprepared by Colombian consultants between 1973 and 1975, but results were ofuneven quality and many had to be redone. While revised designs were being

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prepared, this time in closer cooperation with the Bank, it became apparentthat, because of financial constraints imposed by increasingly higher costestimates, the scope of the project had to be reduced. Roads in comparativelybetter condition and roads with lower priority were taken out of the program.Final designs were eventually produced for 978 km, which have been included inthe program. It is evident, however, that there is a need for more than canbe accomplished through the project. Steps to prepare a second rehabilitationprogram would be reviewed with MOPT once the proposed program is under way.

1.09 The vehicle weight control component of the project evolved fromthe assessment by MOPT and the Bank of the major factors causing the need forroad rehabilitation. The extent of truck overloading and the damage causedto the roads have been well known in Colombia; enforcement of weight controlregulations was an explicit covenant of successive highway loans since theFourth Highway Project in 1961. Some steps toward vehicle weighing were takenin the 1960's, but the effort was not pursued. More recently, the magnitudeof the rehabilitation requirements has triggered renewed interest for weightcontrol, and an enforcement program has been included under the proposedproject. MOPT's Planning Office has done preliminary analysis on the numberand location of the weighing stations required to effect the proposed control,and a three-phase study to develop a comprehensive enforcement program is nowin progress (see Terms of Reference, Annex 1). Specific loan covenants areproposed to ensure that the study is completed and that it will be used todevelop effective enforcement.

1.10 The Highway Maintenance Program of the project includes introductionof improved equipment, workshop and store management procedures; purchase ofequipment and spare parts; and technical assistance. The emphasis on equipmentutilization and management of workshops and stores is a development of the workof a UNIDO 1/ team (financed by UNDP) that has assisted MOPT since 1973 inequipment maintenance and utilization. The equipment and spare parts purchaseprogram is based on an assessment of MOPT's equipment fleet carried out by aBank consultant as part of the appraisal. The technical assistance componentwould be an extension of the ongoing UNIDO program and reflects a jointassessment, by MOPT and the Bank, of the advisory services required to effectneeded improvement in equipment and store management and in the programmingand execution of maintenance operations. Rather than concentrating on generalanalysis of road maintenance procedures, the technical assistance is orientedto on-the-job training through direct involvement in all critical aspects ofmaintenance operations, especially those for paved roads.

1.11 This report has been prepared by Messrs. Renato Schulz (Economist)and Peter Morris (Engineer) following an appraisal mission, which also in-cluded Mr. Andrew Mackie (Consultant on equipment maintenance), in September1976 and a post-appraisal mission by Messrs. Schulz and Morris in February1977. The report has been edited by Miss Virginia Foster.

1/ United Nations Industrial Development Organization.

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2. THE TRANSPORT SYSTEM

A. General

2.01 It was not until the early 1950's that Colombia's largely regionallyoriented transport system began to evolve into a national system. For a longtime, the Magdalena River was the only workable transport route between thecentral region and the Atlantic coast. Since 1961, the Atlantic Railroad,which was constructed with Bank assistance, has provided an all-weather con-nection to the north to the port of Santa Marta. Colombia was developing itstrunk highway system at the same time. By the early 1960's, construction andupgrading of the Western Trunk Road (Cartagena-Medellin-Cali-Pasto), theEastern Trunk Road (Santa Marta-Bucaramanga-Bogota-Neiva) and the two maintransverse roads that connect the eastern and western trunk roads in thecentral region were substantially complete. The highway system has since beena catalyst of national integration. Road transport developed rapidly over thelast two decades and now is unquestionably the most important and key means ofmoving about the country for both passengers and freight.

2.02 The Colombian economy has become highly dependent on the year-roundavailability of roads and their capacity to bring products to its ports andimports to their inland destinations. This dependency is reflected in thehigh share of traffic moved by road. In the early 1950's, roads accounted forabout 43% of total freight movements; in the mid-1960's, that share had risento about 53%, and, in 1974, although no adequate statistics exist, the sharewas estimated to be close to 70% of all interregional and internationaltraffic. River transport and coastal shipping, which are largely confined tothe movement of petroleum products, account for about 15% and railways foranother 15% of total traffic.

2.03 Overall total domestic freight traffic has grown in the last decadeat rates close to that of GDP, 6% to 7% p.a. While rail traffic has grownvery slowly, about 2.5% p.a., and inland shipping has grown at about 5%p.a., road traffic has been growing faster than the average, around 8% p.a.

B. Highways

2.04 The highway system and its administration are discussed in detailin Chapter 3.

C. Railways

2.05 The Pacific (Medellin-Cali-Buenaventura; 651 km) and the Atlantic(Bogota-Santa Marta; 969 km) rail systems were connected to one another in1961. Since then, however, erosions along the Cauca and Dagua rivers havecaused interruptions of traffic from Medellin to the south for, at times,several months. In 1970, a huge landslide caused a rail viaduct to collapsejust south of Medellin, disconnecting the two systems. Despite efforts toreestablish services, success has been limited, and, in 1976, the Governmentdecided to abandon attempts to connect the two systems. The general condition

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of the track, particularly that of the Pacific system, is poor; this, togetherwith the difficult geomorphological conditions, has resulted in the need togive priority to emergency winter repairs over routine track maintenance.There is a high incidence of derailments and accidents which has lessened therailways' capacity to provide reliable and timely services in the face ofgrowing competition from road transport. Important shifts in traffic fromrail to road have thus occurred as the road network was being completed.Between 1966 and 1973, rail traffic remained relatively constant at around1.1 million ton-km moved per year; in 1973-1974, there was an increase toabout 1.3 million ton-km, but, in 1975-1976, it decreased again to the 1.1million ton-km level. Passenger traffic dropped steadily from about 500million pass-km in 1966 to about 260 million in 1972 because the railway wasunable to compete with the improved road services. Since 1973, passengertraffic has picked up and is now again around 500 million pass-km, mainly as aresult of the comparatively low rates charged by the railway. The levels oftraffic and tariffs for freight and passengers indicate continuing financialsupport from the Government.

2.06 In recent years, the long-term viability of the railway has comeunder close scrutiny, partly as a result of the conclusions of the MagdalenaRiver Basin Transport Study (Netherlands Economic Institute, 1974) and partlyas a consequence of the decline in freight traffic since 1975. Studies areunder way, under the direction of the Sectoral Planning Office of MOPT, toreassess the role and future prospects of the railway, particularly that ofthe Atlantic Railroad (Bogota-Santa Marta and the Medellin branch).

D. Inland Waterways

2.07 Although the traditional importance of inland shipping has decreaseddue to the development of rail and of road transport, it is still of somesignificance. Both the Magdalena and the Cauca rivers are navigable, and theyaccount for almost all inland shipping. The Magdalena river carries over 95%of the traffic and, although of difficult navigation, is quite dependable inall seasons down-river of Gamarra (about 470 km from the Barranquilla river-seaterminal); up-river as far as Salgar (930 km from Barranquilla), navigation isonly seasonal. Bulk goods, especially petroleum products, constitute the mainfreight movement, but there is stiff competition for this traffic from othermodes. Total traffic in 1974 was about 3.0 million tons, of which 74% waspetroleum products. Passenger traffic on the river is almost non-existent.Inland shipping has complemented rail traffic to some extent, particularlyfor goods originating from and destined to the port of Cartagena, which isconnected to the Magdalena river by a man-made canal (Canal del Dique).Transshipments to both rail and road can be effected at Cienaga and a numberof river ports further upstream; yet, the comparative advantage of roadtransport vis-a-vis the ccmbined river-rail or river-road movements makesthese combinations viable for just a few products.

E. Ports

2.08 The principal seaports of Colombia are Cartagena, Barranquillaand Santa Marta on the Atlantic Coast and Buenaventura on the Pacific coast.

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Between 1966 and 1972, the traffic in the four main ports increased from 2.1million tons to 2.6 million tons (about two-thirds for imports and one-thirdfor exports). With the improvements of the transit storage and cargo-handlingfacilities carried out with IDB financing, the four main ports are now ableto handle over 4 million tons of general cargo per year. Consequently, thereshould be no overall capacity problem in the foreseeable future. Neverthe-less, the connections with inland transport have not been adequately analyzed,and bottlenecks may occur for certain products requiring specialized handlingand storing facilities, e.g., in Cartagena, for the handling of fertilizer.

F. Civil Aviation

2.09 Colombia's difficult terrain has encouraged the development of airtransport as an important means of domestic travel. There are about 650landing facilities in the country; seven of these handle international traffic,and there are at least 25 others with volumes of domestic traffic upward of1,000 passengers a month. In view of technological improvements in theaviation field and the inherent difficulties of surface transport, aviation ismost likely to continue to have an increasing role in the country, especiallyin the movement of passengers and in the more remote areas of the ColombianAmazonas.

G. Investments, Regulation and Coordination

2.10 The effort to complete the basic transport network required a con-siderable proportion of the country's total investment. Transport representedbetween 10% and 15% of domestic investment and about half the Central Govern-ment's investment in the late 1950's. When the trunk highway system and theAtlantic Railways were being completed, that proportion rose to more than 60%of Central Government investment. More recently, however, the proportion hasbeen declining; in the late 1960's, it was about 35% and, since 1970, it hasbeen about 25% of total public investment. In 1975, Col$ 3,200 million wereinvested in the transportation sector (around US$107 million); of these, about60% went to road transport, 18% to rail transport, 11% to aviation, 8% toports and marine transportation and 3% to inland waterways and shipping. Onthe whole, this distribution reflects the present economic importance of thedifferent modes of transport (Table 2).

2.11 Road-rail competition, the most important area for transport co-ordination, has developed largely in an unregulated environment. Severalstudies, the last of which was the "Magdalena River Basin Transport Study"(Netherlands Economic Institute, 1974), have not had a significant impact oncreating a framework for improved transport coordination. Until 1966, whenDecree 3160 attempted to tie in the various entities reponsible for transpor-tation with MOP, no form of central control was imposed. Before that, respon-sibility for the administration of the transport system was divided among anumber of agencies and decentralized organizations, the largest being MOPitself. Decree 3160 made the Minister of Public Works an ex-officio member ofthe boards of all these agencies. Yet Ministerial control remained limited,and the lack of central coordination of the different modes persisted.

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2.12 More recently, however, coordination of the modes has been tightenedup considerably. Decree 154 of January 27, 1976 restructured MOP and turnedit into the Ministry of Public Works and Transport (MOPT). The objectives,functions and structure of many of the Departments, Divisions and Officeswithin MOPT and some of the decentralized institutions were redefined.Article 12 of the Decree refers specifically to the planning and coordinatingfunctions of the restructured Planning Office in MOPT and assigns to it allof the functions necessary to effect intermodal planning and coordination forthe transport sector as a whole. Moreover, expanded Ministerial powers nowinclude approval of the budget and investment programs for all modes exceptaviation.

2.13 Experience with the new MOPT organization has been short, and no as-sessment of its effectiveness can be made yet; however, there is now a reason-able expectation that improvements in intermodal planning will come about in thefuture. Since June 1976, the Government of the Netherlands has been providingtechnical help to MOPT's Planning Office in defining its activities, in on-the-job staff training and in initiating the preparation of a National TransportPlan. This should provide the basic setup for proper planning. The ongoingtechnical assistance program is expected to be completed in 1978. The projectwould contain provision for further assistance for specific transport studiesto be identified as the technical assistance progresses (para. 4.18).

2.14 Now that the role of the Planning Office of MOPT has been expanded,it is expected that this Office will become the main coordinating agency forthe whole transport sector. For the time being, however, it still has highwayplanning responsibilities. The Bank has, on several occasions, called atten-tion to the need to separate sector planning from highway planning, shiftingthe responsibility for highway planning to another division within MOPT. Thissuggestion has been accepted by the Government, and MOPT has agreed to set upan advisory unit attached to the Vice-Minister's Office for highway planning.During negotiations, the Government confirmed that MOPT would establish thisseparate unit by December 1, 1977.

3. THE HIGHWAY SUBSECTOR

A. The Network

(i) General

3.01 Colombia has a road network totalling about 51,000 km (Table 3):21,000 km form the national highway system under the jurisdiction of MOPT; afurther 27,500 km are under the responsibility of the Departments; and thebalance are municipal, community and private roads (e.g., to oil concessions).About one-third (7,000 km) of the national system is paved, against about 3%(780 km) of the departmental roads; the remainder are gravel or unsurfacedroads. Over the past five years, the national road network has expandedabout 1,000 km. In this period, 2,000 km of national roads were paved, abouthalf of them under the Fifth and Sixth Highway Projects. The departmental

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system includes about 6,000 km of low standard feeder roads built under aprogram financed by the National Feeder Roads Fund, which is under the author-ity of the Minister of Public Works and Transport.

3.02 The national highway system comprises the primary road networkwhich connects the main economic centers among themselves and with the ports,and secondary roads linking smaller towns to the primary network. The twomajor transport corridors run north-south along the Cauca and Magdalenavalleys and are connected by two paved roads in the central region, onevia Ibague-Armenia and the other via Honda-Manizales (Map IBRD 12553). Thenational network is adequate in coverage, although its general conditionis poor and deteriorating. At least half of the paved roads need asphaltoverlays or strengthening to preserve the pavement structure. The rehabili-tation program proposed in this project would restore the most highly traf-ficked trunk roads. In the next few years, the areas of priority concerningthe paved road network would be (a) improved maintenance; (b) strengthening,rehabilitation and upgrading of selected sections; and (c) limited expansionas needed to support the development of new regions.

(ii) Departmental and Feeder Roads

3.03 Other than MOPT, there are two major organizations in charge of con-struction and maintenance of secondary and rural roads: the Secretariatsof Public Works of the Departmental Governments and the National FeederRoads Fund (Caminos Vecinales). The National Feeder Roads Fund is dedicatedexclusively to the construction of feeder roads. It was created in 1960 and,to date, has been instrumental in the construction of about 6,000 km of lowstandard roads. Most feeder roads constructed by the Fund are transferred,once completed, to the Departmental Secretariats for maintenance; therefore,these roads are mostly accounted for as departmental roads (Table 3).

3.04 The Feeder Roads Fund is autonomous. It is managed by a Boardpresided over by the Minister of Public Works and Transport and in which theMinister of Agriculture is also represented. It is operated by a DirectorGeneral through two departments--Administration and Engineering--with a staffof about 300 distributed between headquarters in Bogota and 25 field units,one in each department. Three programs are currently being carried out by theFund: (a) the Ordinary Program, under which feeder roads are built either bycontract or by force account financed with allocations from the Highway Fund(para 3.11); (b) the "Pick and Shovel Program," under which roads are builtwith labor-intensive methods, in areas of high unemployment, with a minimalbudget; and (c) the IDB Program, which includes construction of 46 roads.Under this last program, the Fund has been required to extend its activitiesto maintenance of feeder roads, an area which has been completely neglected.The Feeder Roads Fund is Executing Agency for the road components of someBank-financed rural development projects; experience with it has been satis-factory. It is expected that this working relationship would lead to theidentification of further programs for improvement and, possibly, maintenanceof feeder roads.

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B. Road Transport and Traffic

3.05 There are about 500,000 motor vehicles in Colombia, of which roughlythree-quarters are passenger vehicles, mainly automobiles, and the rest arefreight trucks. The fleet has grown at a rate of about 9% p.a. over the fiveyears 1970-1975. The increase in the number of automobiles has been slowerthan that for trucks, 7% p.a. versus about 12% p.a. (Table 4). There areno reliable statistics on the composition of the fleet, but a survey carriedout in 1973 by the Transport Finance Corporation, a Government agency, showedthat 60% of the trucks in the fleet have payload capacities of less than7 tons, 30% have between 7 and 10 tons and only 10% have capacities of over 10tons. The ongoing study on the implementation of a Weight Control Programwould review the steps necessary to effect changes, if any, to this composition.The fact that almost 90% of the trucks have single rear-axle accounts largelyfor the gravity of overloading, since these trucks are the most likely to beoverloaded. The Weight Control Program is a key element to improving highwaymaintenance policies which would be introduced under the project (para. 4.08).

3.06 Colombia has had vehicle weight control regulations since 1955(Decree 102 of January 9, 1955); these regulations allow for a maximum loadingper single axle of 8.2 tons, increasing to 14.5 tons for tandem axles and upto 27.2 tons for multiple axle groups. Decree 1051 of February, 1971 updatedsuch regulations by allowing for a wider variety of axle combinations, whichresulted in the upper limit for multiple axle groups being raised to 31.4tons. These limits contrast with those used in most other Andean countrieswhere considerably higher loads per axle have been accepted; in Bolivia,Ecuador and Peru, 11.0 tons per single axle and 14.5, 19 and 18 tons respec-tively per tandem axle are accepted. In Chile, 12 and 20 tons for single andtandem axles are allowed, and, in Venezuela, 13 and 20 tons respectively arepermitted. Colombia, being a signatory to Decision 94 of the Cartagena Accord(1970), which specifies maximum admissible loads of 11 and 16 tons for singleand tandem axles, will need to review its axle load regulation. This aspectis covered in the Terms of Reference of the study currently being carried outby MOPT (para. 4.08).

3.07 Traffic growth on the main trunk network of the country has averaged8% p.a. over the past years (Table 5). Traffic volumes on most paved roadsare in the 1,000 to 2,000 vehicles-per-day range, except around the majorurban centers of Bogota, Cali and Medellin, where about 4,000 to 6,000 vehiclesper day are counted. The average composition of the traffic flow is about 30%to 40% automobiles, 10% to 20% buses and 40% to 60% trucks. Truck traffic onthe roads in the Rehabilitation Program is generally above 45% and often inthe 50%-60% range (Table 15).

C. Highway Administration

3.08 MOPT, through the Directorates of Construction and Operations(Chart 1), is responsible for constructing and maintaining the nationalhighway network. The Vice-Minister, for all practical purposes, manages thehighway subsector under delegated authority of the Minister. The Directorate

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of Construction is divided into five divisions: Studies and Designs, Construc-tion Materials, Contracts, Contract Supervision and Special Highway Programs.The Directorate of Operations is made up of the districts and two centraldivisions, one for Road Maintenance and the other for Equipment and Workshops.These divisions coordinate with the 19 districts (due to increase to 26 laterin 1977) located throughout the country. Each district is headed by anengineer who is responsible for the maintenance of the highways (250 to 2,250km of road per district). The districts also maintain the plant and equipmentassigned to them under the guidance of the Equipment and Workshop Division atHeadquarters.

3.09 The two directorates are reasonably well staffed, and their seniorpersonnel are experienced and capable. The Construction Directorate has about125 civil engineers and 50 technicians, and the Operations Directorate about130 civil engineers, 40 mechanical engineers, 160 technicians, and 540 mechanics.In the early 1970's, after the recommendations of the Comec/Harris report wereimplemented (para. 1.04), the districts were generally well staffed. However,over the years, as wages and salaries increased, a freeze was imposed on hiringnew staff. Because of the drift into seniority, there is now a relative im-balance between field labor and supervisory and managerial staff. The Ministryis aware of this imbalance, and the districts have been circumventing theshortage of field hands by contracting out many routine maintenance operations.Corrective measures would be developed under the project (para. 3.23).

D. Highway Planning

3.10 Strategic planning for highways, as opposed to operational program-ming which is carried out by the Directorate of Construction, has tradition-ally been the responsibility of the Planning Office of MOPT. However, theoverall effectiveness of the Planning Office has been limited, and, too oftenin the past, overly ambitious programs have been undertaken without relationto expected levels of resources or consideration of the capability and capac-ity of the country's construction industry. The Planning Office of MOPT hasrecently been restructured, as described in paragraph 2.12, and highway plan-ning will be taken over by a separate unit operating in an advisory capacityto the Vice-Minister (para. 2.14). The main tasks of the new Highway PlanningUnit would be to:

- coordinate, assemble and maintain statistical informationconcerning traffic;

- initiate and maintain an inventory and a condition survey ofthe national highways;

- advise on the preparation and implementation of the highwaysubsector projects and programs in the National TransportPlan (para. 2.13);

- determine, in coordination with the Directorates of Construction andOperations, and on the basis of a consistent set of criteria,the requirements for highway resealing, upgrading, strengtheningand rehabilitation;

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- develop specific programs for the above works, takinginto account expected level of resources; and

- initiate and supervise preinvestment studies for highwaydevelopment or conservation programs.

The above terms of reference as well as the staffing requirements and thespecific measures for the establishment of the proposed unit have been pre-pared by MOPT and were discussed and agreed upon during negotiations.

E. Highway Financing and Road User Charges

3.11 The National Highway Fund (Fondo Vial) was set up in 1966 for thepurpose of channeling all resources devoted to the highway subsector. TheFund, which has no staff of its own, is administered by the Minister of PublicWorks and Transport. In constant terms (Table 6), the Fund's revenues reacheda peak in 1971 and have since fallen back to pre-1970 levels. Over the pastfew years, the gasoline tax (Table 7) has accounted for over 80% of the Fund'srevenues (85% in 1976). Gasoline taxation, during the period from 1970 to1976, averaged about US$45 million in constant 1967 monetary terms. The Fund'sother revenues include foreign financial assistance from IBRD and IDB, andsome own resources as well as direct Government contributions, which are beingphased out since increases in gasoline prices (and taxation) began in 1975.Over the period from 1970 to 1976, an average of 88% of the Fund's expenditureswas for the national highway network, 8% was devoted on average to the NationalFeeder Roads Fund (to which a legal maximum of 10% of the Highway Fund's reve-nues can be devoted) and the remainder was spent on maintaining waterways. Ofhighway expenditures, about 30% is used for maintenance, 50% for constructionand 20% for other current expenses. In constant monetary terms (Table 8),expenditures for maintenance decreased relatively less from 1970 to 1976 thandid expenditures for construction. MOPT's projection of the Fund's futurerevenues and expenditures (Table 9) assumes a gradual increase in total reve-nues of about 10% per year. This is based on planned contributions from IBRDand IDB programs, a 33% increase in the price of gasoline (about Col$ 3 pergallon on current prices of Col$ 10 per gallon) before the end of 1978, afurther 6% (about Col$ 0.75) increase in 1980, and a 6% increase in gasolineconsumption. These assumptions are reasonable vis-a-vis past experienceand recent developments in the evolution of gasoline pricing (para. 3.12)and would yield conservative estimates of future levels of revenues for theFund as further increases in gasoline prices beyond the above assumptions areexpected (para. 3.12).

3.12 Since August 1975, the Government has been following a policy ofgradually increasing the price of gasoline. The price structure for regular,low octane, gasoline is in Table 10. It reflects net taxation accruing tothe National Highway Fund as well as other taxes and distribution margins.Increases took place monthly from August 1975 to August 1976, and a furtherincrease was decreed in January 1977, after which prices reached a level ofCol$ 13.50, Col$ 10.00 and Col$ 5.50 per gallon for high octane gasoline,regular gasoline, and diesel fuel respectively, equivalent to US$0.37, US$0.28and US$0.15 per gallon. Further increases are expected to be implemented inthe future until prices reach international comparable levels. These have

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been partially (but not fully, given the uncertainties on the exact timingof future increases) taken into account in MOPT's projections of the Fund'sfuture revenues (para. 3.11). The Fund's revenues in the next five years areexpected to sustain adequately the increased level of maintenance expenditures

proposed under the project, but may not be sufficient to cover all programmedhighway expenditures, i.e., including construction. Therefore, additionalfunds may have to be contributed by the Government from general revenuesshould gasoline prices and taxation not increase within the time frame of theprojections indicated in paragraph 3.11 (Table 9). The Government confirmed,during negotiations, its intention to supplement the Fund's revenues asnecessary, through the project period 1978-1981, to achieve the agreed levelof maintenance expenditures (para. 3.23) and to finance its share of theproject costs.

F. Highway Engineering

3.13 MOPT's Directorate of Construction is responsible for the technicalpreparation of highway projects. MOPT itself has a limited in-house designcapacity and often uses consultants for this purpose. Geometric design stand-ards for new highways were introduced in 1967 and are generally satisfactory.These standards are often relaxed, however, because of the difficult terrainand/or particular conditions such as paving or strengthening of existingroads. Design standard changes for the Paving Program under the Sixth HighwayProject (Loan 680-CO) usually fell into this last category. Only limitedimprovement to geometric design would be provided in the RehabilitationProgram. The overall evaluation of past Bank projects, conducted in 1971,stressed the need to adapt the design of highway projects to the specificcircumstances at hand. The selection of design standards under the SixthHighway Project and the determination of the scope of the rehabilitation worksunder the proposed project are in line with this recommendation.

3.14 In 1975, a new Special Highway Programs Division was formed to coor-dinate studies and construction projects financed by international lendingagencies. The division coordinates the work of MOPT's specialized divisionsand is responsible for the preparation of specifications and contract documentsfor such projects; it also prepares progress reports for the agencies. Thedivision has positions for 15 engineers (four vacant) and one economist(vacant) and presently coordinates about 60 projects. The number of positionshas been recently increased to provide stronger coordination for the Rehab-ilitation Program (para. 4.07).

3.15 The civil engineering consulting profession is now well establishedin Colombia, and over 200 firms are registered with MOPT. In the past, pre-qualification of consultants for design and supervision works was lax, whichallowed the awarding of contracts to inadequately qualified firms, leading topoor performance. This was especially the case for the supervision of thePaving Program (Loan 680-CO) and the initial design work for the Rehabilita-tion Program. The procedures for selecting consultants were modified in 1976and are now satisfactory.

G. Highway Construction

3.16 Modern methods of highway construction were first introduced toColombia in the early 1950's, when experienced foreign contractors wereemployed on the First Highway Project. There are now about 25 local firms,

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each capable of handling an annual turnover of over US$1.0 million worth ofasphalt road construction. Ten of these firms have the capacity to handlecontracts of at least US$2.0 million annual turnover. Few foreign civil con-tractors are presently working in Colombia, and, except for the Barranquillabridge, all civil work contracts under the Fifth and Sixth Highway Projectswere awarded to local firms.

3.17 Several construction contracts under the Fifth and Sixth HighwayProjects suffered setbacks and cost overruns for a variety of reasons, includ-ing lack of qualification or insufficient financial capacity of contractors.This prompted MOPT to initiate studies to review contract documents andprocedures for prequalifying contractors. In 1975, the Bank contracted aconsultant to review the status of the road construction industry. His reportand recommendations were of assistance to MOPT, and, in 1976, MOPT introducedmore rigid procedures. A permanent register of firms, showing their technicaland financial capacity, is now maintained and updated annually. Each firm'scapability to undertake a particular contract is reviewed after presentationof bids on each competition. Decree No. 150, passed in February 1976, alsoimproved the basic contractural conditions. Colombia now has a strict andequitable basis for contracting road works.

H. Highway Maintenance

3.18 Current MOPT budgetary practices separate road maintenance into twocategories: routine and special maintenance. The latter covers periodicmaintenance which should be planned and programmed systematically on a revolv-ing basis, and betterment and reconstruction works which, although requiringsystematic planning, are capital expenditures which should be undertaken on anad hoc basis after economic studies and detailed engineering. To effect animproved maintenance policy, periodic maintenance activities should be iden-tified and budgeted separately. Specific recommendations on the improvementin programming and budgeting procedures would be established through theHighway Maintenance Program (para. 4.17). During negotiations, assuranceswere obtained that, from the year 1978 onward, routine periodic and emergencymaintenance activities would be identified and budgeted separately from othernon-maintenance activities.

3.19 Periodic maintenance of paved roads (asphaltic seal coats and over-lays) is not planned systematically; such work is usually carried out afterpavement surfaces have deteriorated to such an extent that rehabilitation orconsiderable strengthening should be executed. Table 11 shows the history ofconstruction and periodic maintenance of roads included in the rehabilitationprogram; only about 40% of the roads have ever received an asphalt seal coator overlay although 75% of them were paved in the 1950's. Nearly all resealswere carried out after 1968, but, due to the pavements already being in weakcondition, many lasted only a short time. In the past five years, about 1,000km of roads were paved under the Fifth and Sixth Highway Projects; a programof seal coats and overlays is therefore now required for these roads ifproblems similar to those being encountered today are to be avoided. Duringnegotiations, the Government confirmed that, starting in 1978, MOPT would planand implement a program of periodic maintenance on a continuing basis, toinclude, over the project period (1978-1981), an average of at least 400 kmannually.

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3.20 MOPT has not replaced its equipment fleet systematically. Purchaseshave been sporadic and on a stop-go basis. The last significant purchase ofequipment was in 1971/72, financed with US and UK credits worth about US$21million equivalent. MOPT presently has about 4,200 units 1/ in its fleet,which would seem excessive for the needs of the network, were these units ingood condition. The average age of the fleet is over 10 years, and itsgeneral condition is critical; about 25% of the units are obsolete and cannotbe economically repaired, and a further 35% are out of order or in need of amajor overhaul. The proposed project is designed to help MOPT in renewing thefleet over a four-year period 1978-1981. MOPT would need to continue system-atic renewal on an annual basis. Assurance to this effect was obtained duringnegotiations. Specific minimum requirements for the project period areestimated in paragraph 3.23.

3.21 The districts suffer a permanent lack of funds for spare parts, andmake do by buying spare parts on credit from local suppliers. These debts areusually cancelled with the following year's budget, which is again invariablyinsufficient for current needs, let alone paying past debts. This precariousexistence severely hinders programming of road maintenance activities andpermits only urgent works to be carried out. The project would provide spareparts to initiate improved equipment maintenance procedures and to carry outnecessary repairs. During negotiations, assurance was obtained that theGovernment would fund and carry out purchase of spare parts on an annual basisto maintain the fleet at an adequate level of availability. Specific minimumrequirements for the project period are estimated in paragraph 3.23. In orderto restore effective purchasing practices, the Government will cancel orrefinance the existing backlog of unpaid suppliers' bills by March 31, 1978.

3.22 In the 1960's, two studies were carried out, both of which recom-mended implementing improvements in the organization of MOPT's maintenancefunction. Workshop facilities and staffing were strengthened, and a pilotprogram was established in one of the districts. However, little attentionhas been paid to the management of the equipment fleet. From 1973 to 1976,UNIDO had a group of experts assisting MOPT's equipment and workshop divisionin the programming of equipment maintenance. UNIDO recommended the reorganiza-tion of the purchasing, warehousing and distribution of spare parts and theinstallation of a preventive maintenance system for the fleet. The system,which would be established under the project, would require the stocking offast-moving spare parts in the districts, with automatic reordering at pre-determined levels. Preventive maintenance, together with an equipmentreplacement program, should help improve equipment availability considerably(presently estimated at only 40-50%) and, consequently, allow for a reductionin the number of units needed to maintain the highway network adequately.

I. Future Level of Highway Maintenance Expenditures

3.23 The lack of funds for purposes other than personnel and administra-tive expenditures is the single most important cause of the ineffectiveness of

1/ Excluding jeeps and workshop equipment.

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the present road maintenance organization. Success of the corrective measuresproposed under the project relies largely on increases in the resources devotedto maintenance. In view of the importance of this matter, the Bank requestedthe Government to confirm that sufficient funds would be made available forroutine, periodic and emergency maintenance of the national network. Minimumrequirements for the four years of project execution, 1978 to 1981, are esti-mated as follows:

1977 /1 1978 1979 1980 1981-(US$ million equivalent, Dec. 1976 values)-

Personnel and

administration 30.00 30.00 30.00 30.00 30.00

Equipment-total 5.00 /2 15.00 15.00 10.00 10.00- Bank financed (9.00) (9.00)

Spare Parts-total 2.50 6.20 5.00 5.00 5.00- Bank financed (3.60)

Materials /3 3.50 10.00 10.00 10.00 10.00

SUBTOTAL 41.00 61.20 60.00 55.00 55.00- Bank financed (12.60) (9.00)

ContractedOverlays /4 0.00 4.40 8.00 12.00 12.00

GRAND TOTAL 41.00 65.60 68.00 67.00 67.00- Bank financed (12.60) (9.00)

/1 Year-end estimates./2 Imputed annualized expenditure./3 Including contracted field labor./4 Estimated overlay of an average over the period 1978-1981 of about

400 km per year (para. 3.19).

The above schedule of minimum requirements was reviewed and confirmed duringnegotiations. The Government also confirmed that: (a) during the projectperiod, MOPT expenditures for personnel and related overhead would not exceed50% of the aggregate total of expenditures net of Bank contributions; (b) annualreviews of the adequacy of the above figures would take place in consultationwith the Bank, and funds, as necessary, would be allocated for the fiscal yearsubsequent to the review, for the purposes of funding routine, periodic andemergency maintenance as shown in the schedule; and (c) MOPT would exchangeviews with the Bank before June 30, 1978 on measures to adjust the compositionof the personnel attached to the districts in relation to their needs (para.3.09).

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4. THE PROJECT

A. Objectives

4.01 In line with the Government's policy to protect past highway invest-ments in the national highway network, the proposed project would:

(a) rehabilitate parts of the main trunk highways;

(b) eliminate the damaging effects of overloading vehicles;

(c) improve the condition and availability of the highwaymaintenance fleet;

(d) improve efficiency of road maintenance operations; and

(e) improve intermodal transport planning.

B. General Description

4.02 The project consists of:

I. Road Rehabilitation Program

Rehabilitation of about 978 km of trunk asphalt paved roads compris-ing improvement of terrain stability and drainage, strengtheningand widening of the roadway, where necessary, and overlaying theexisting pavement. To this end, the project would provide:

(a) civil works to be carried out by contractors;

(b) supervision of the civil works by consultants; and

(c) coordination of the Rehabilitation Program by an individualexpert working in MOPT's Special Highway Programs Division. 1/

II. Vehicle Weight Control Program

Installation of about 20 weighing stations on main trunk roads forenforcement of vehicle weight regulations. To this end, the projectwould provide:

(a) complementary studies to define the program and thepreparation of detailed engineering;

(b) weighing equipment and training in its use;

(c) civil works and the installation of the weighing equipment tobe carried out by contractors; and

1/ This expert would also coordinate a countrywide study to produce aninventory of road materials (para. 4.19).

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(d) supervision of the civil works and equipment installation byconsultants.

III. Highway Maintenance Program

Introduction of improved methods for the maintenance and utilizationof MOPT's highway maintenance fleet. To this end, the project wouldprovide:

(a) about 800 units of equipment for highway maintenance;

(b) spare parts for repair of about 1,230 units of equipment whichare under 15 years of age;

(c) spare parts to initiate a preventive maintenance program forabout 1,060 units of equipment purchased after 1970;

(d) expansion of existing workshop and store facilities; and

(e) technical assistance, including training for:

- the supply, distribution and warehousing of spare parts,

- programming of preventive and corrective maintenance ofequipment,

- improving programming, costing and execution of all roadmaintenance activities performed by the districts.

IV. Transport Sector Management

Assistance to MOPT's Sector Planning Office for carrying out studiesto be determined on the basis of the recommendations of the ongoingbilateral technical assistance provided by the Government of theNetherlands. Also, the Fondo Nacional de Desarrollo Economico(FONADE) is expected to help finance a countrywide study to producean inventory of locally available road construction materials.

V. Logistic Support for Project Execution

(a) vehicles to support the execution of the Rehabilitationand Maintenance Programs;

(b) road marking equipment for MOPT; and

(c) laboratory and drilling equipment for MOPT.

C. Road Rehabilitation Program

(i) General

4.03 As indicated in paragraph 1.08, the Rehabilitation Program developedout of a survey carried out in 1973 by INGEROUTE (France). The Program was

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eventually trimmed to 978 km of paved trunk roads, including the most heavilytrafficked roads in the country. About 75% of the roads included under the Pro-gram were paved in the 1950's (some under Bank-financed projects); they are nowfailing because of obsolescence, pavement fatigue accelerated by overloading oftrucks, and inadequate maintenance. The selection of roads and the construc-tion schedule (Table 12) take into consideration economic priorities and aconcern for achieving a balanced distribution of project expenditures amongthe country's regions, in line with stated Government policy. The constructionschedule also takes into account the capacity of the local construction indus-try and is designed to allow a firm's participation in more than one batch ofcontracts (para. 4.29). The Program is also large enough to attract foreignfirms, five of which have already been prequalified. A summary description ofeach road section and an outline of the scope of the proposed works is givenin Annex 2. The anticipated 1978 traffic volumes and the estimates of economiccosts for the various sections are shown in Table 15, and financial costs areshown in Table 12.

4.04 Bridges were generally not considered under the RehabilitationProgram. However, along four road sections, some of the bridges are inadequatefor present-day traffic and need repair or reconstruction. The scope of theseworks is not defined with sufficient detail to include them in the project;however, during negotiations, agreement was reached on the need to rehabilitatethese bridges concurrently with the rehabilitation of the roads.

(ii) Civil Works

4.05 Civil works would be carried out in 33 road lots over a four andone-half year period starting mid-1977. In addition to strengthening andpaving, the works include installation of proper drainage to stabilize theterrain and protect the pavement; widening the pavement, where necessary, to7.0 or 7.2 meters, but not necessarily widening the shoulders since this wouldoften produce unjustifiably high costs; and provision of complementary workssuch as retaining walls, erosion control, and signs to protect the roadwayand improve the safety and continuity of traffic. On nine lots (includingthose marked A on Table 12), urgent stabilization and drainage works are beingcarried out under separate contracts in advance of pavement rehabilitationproper (para. 4.28).

(iii) Supervision of Construction

4.06 Under Colombian law, supervision of civil works may not be carriedout by the project's designer. For supervision purposes, therefore, the 33construction lots have been divided into six geographical groups, and MOPTwill invite proposals from 35 registered and prequalified consultants.

4.07 Overall supervision of the contracts would be carried out by theSupervision Division of the Construction Directorate, but coordination of theProgram would be the responsibility of the Special Highway Programs Divisionwithin the same directorate. This Division would require strengthening toprovide the necessary control for the project's execution. Six experiencedengineers, one for each supervision group, would be hired or recruited withinthe Ministry for this purpose. In addition, the services of a senior Engineer

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(Coordinator) would be provided under the project to advise the Division ontechnical issues and to help coordinate the activities of consultants super-vising the Rehabilitation Program and carrying out a study on road materials(para. 4.19). Outline terms of reference for the Coordinator are given inAnnex 3. His professional qualifications and conditions of employment shouldbe acceptable to the Bank. During negotiations, agreement was reached on thestaffing (qualification and timetable for recruitment) of MOPT's SpecialHighway Programs Division for the coordination of the Rehabilitation Program.Recruitment of the Coordinator and at least four of the coordinating staffwould be a condition of disbursement for civil works and the constructionsupervision.

D. Vehicle Weight Control Program

(i) General

4.08 For some time now, the Ministry has been aware of the extent of thedamage that overloaded vehicles have inflicted on the highways of the country.A preliminary selection of suitable locations for weighing stations was carriedout by MOPT's Sector Planning Office, and a three-phase study to develop adetailed enforcement program was begun in February 1977 by Tecnoconsulta(Colombia) under the supervision of MOPT's Sector Planning Office. Terms ofReference for the study (Annex 1) were reviewed by the Bank and found satis-factory but in need of several additions which were discussed and agreedduring negotiations. Phase I, which should be completed by May 1977, wouldassess the adequacy of existing regulations on weights and dimensions of heavyvehicles and relevant regulations in neighboring countries (para. 3.06). Onthe basis of the consultants' recommendations, agreement would be reached withthe Bank on the legal and administrative measures needed to carry out andenforce the program, and the scope and focus of the subsequent phases of thestudy. Phase II would determine the most suitable system of weight controland enforcement and define the equipment most suited to the system, takingworldwide experience into consideration; Phase II would also review the compo-sition of the truck fleet and related import regulations as well as ways ofdeveloping the support of the trucking industry. Phase III would consist ofthe preparation of engineering designs and bid documents for procurement ofthe civil works and weighing equipment. Financial assistance for Phases IIand III of the study would be provided under the project. This would includevisits of Colombian consultants and MOPT staff to countries with experience inlatest techniques in vehicle weighing. Phase II of the study is expected tobe completed by the end of 1977 and Phase III in mid-1978.

4.09 The study would provide the basis for defining a plan of action forcoordinated Government actions concerning the regulatory and legal framework,institutional arrangements and development of public awareness. During nego-tiations, the Government undertook to develop such a plan in consultation withthe Bank no later than February 28, 1978. Before disbursing for constructionof the weighing stations, the Government would have to show, to the Bank'ssatisfaction, that (a) adequate legal provisions have been enacted to put intoeffect the enforcement program; (b) the institution chosen to carry out theweighing programs has been properly staffed, equipped and funded; (c) thegeneral public has been apprised of the aims, objectives and nature of the

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enforcement program; and (d) the trucking industry has been associated withthe development of the program. Furthermore, during negotiations, it wasagreed that funds in this particular category of the loan would not be trans-ferred to any other category and, if not disbursed, would be cancelled.

(ii) Weighing Equipment Installation and Civil Works

4.10 The most suitable type of weighing equipment would be determinedby the study. The suppliers would be required to install and maintain theequipment for a satisfactory period and would provide manuals and on-the-jobtraining for its operation and maintenance. It is envisaged that the civilworks would include housing for the equipment, buildings and a parking areafor overloaded vehicles. Supervision would be carried out by two or threeColombian consulting firms selected according to procedures in Decree 150 of1976.

E. Highway Maintenance Program

(i) General

4.11 The objectives of the Highway Maintenance Program are:

(a) to improve the availability of the road maintenance fleetfrom the present low level of 40 to 50% to about 70% overthe four-year period 1978-1981; and

(b) to assist the districts in making better use of theirresources for road maintenance operations, includingthe equipment.

Increased equipment availability would allow a reduction in the size of thefleet from the present 4,200 units to about 3,740 units, which is estimated tobe the need of MOPT. 1/

(ii) Equipment Replacement

4.12 The Equipment Replacement Program to be carried out between 1978 and1981, together with its annual financial requirements, is shown in Table 13.This program is aimed not only at reducing the average age of the fleet butalso at adjusting its composition to the districts' needs. Equipment replace-ment should be accompanied by orderly scrapping of units which would no longerbe economical to maintain. Total financial requirements are US$50 million in1976 prices, of which US$18 million would be financed by the Bank and theremaining US$32 million by the Government. Highest priority equipment suit-able for international procurement has been included in the project (see listin Table 13). During negotiations, the Government confirmed that, over thefour years 1978-1981, it would provide MOPT with sufficient funds in accordancewith the schedule in paragraph 3.23 to complete the Equipment ReplacementProgram. The Government also confirmed that MOPT would complete the ongoingscrapping program by December 31, 1978 and continue thereafter to disposesystematically of aged equipment.

1/ Excludes jeeps and workshop equipment.

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(iii) Spare Parts for Repair of about 1,230 Units of Equipment

4.13 The project provides for the purchase of spare parts for the over-haul of about 1,230 economically repairable units. A preliminary list ofequipment to be repaired has been drawn up by MOPT. This list would bereviewed when the detailed spare parts requirements are known, the age andutilization of each unit checked, and the extent of the repair work assessed.No equipment older than 15 years (except plant) would be included in theprogram. During negotiations, agreement was reached on procedures for assess-ing the equipment to be included in the repair program.

(iv) Spare Parts to Initiate a Preventive Maintenance Program forAbout 1,060 Units of Equipment

4.14 Under the project, a Preventive Maintenance Program would be in-corporated in all districts. UNIDO experts have prepared preventive mainte-nance schedules for all equipment and have demonstrated their function to thedistricts. To fulfill the objectives of a Preventive Maintenance Program, thedistricts need to retain a stock of fast-moving spare parts. The projectwould help MOPT in setting up the initial stock of spares for the 1,060 units,identified by UNIDO, which have been purchased since 1970. Reorganization ofMOPT's stores and supply procedures began under UNIDO supervision in sixdistricts and is being continued throughout the country. The reorganizationof procedures would have to be completed before initiating the PreventiveMaintenance Program. During negotiations, agreement was reached on (a) thedetails of the Preventive Maintenance Program and (b) the reorganization ofMOPT's purchasing, warehousing and distribution procedures. Funds allocatedfor purchasing spare parts for preventive maintenance would not be disburseduntil such reorganization has been completed.

(v) Extensions to Workshops and Stores

4.15 The project would provide for extensions to existing stores and work-shop facilities, including installation of necessary equipment, to facilitatethe execution of the Preventive Maintenance Program. During negotiations, thescope and timetable of such extensions were discussed and agreed.

(vi) Technical Assistance

4.16 The technical assistance would mainly be on-the-job training forengineers, mechanics, storemen and field personnel, with special emphasis beinggiven to day-to-day activities in the districts. Twelve engineers and techni-cians would be provided by consultants over two to three years (total of 280man-months, Chart 2). Their Terms of Reference, outlined in Annex 3, werereviewed and agreed during negotiations. The Government confirmed that theconsultants selected for this program, as well as their terms and conditionsof employment, would be acceptable to the Bank. The ongoing UNIDO/UNDPprogram would continue to provide one equipment utilization expert to MOPTuntil 1978. The activities of the expert would be adequately coordinated withthe technical assistance under the project.

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4.17 MOPT's Directorates of Commerce and Finance, and of Operations wouldbe required to assign full time counterparts to the technical assistance team.These counterparts will be experienced in their respective fields and willform a permanent training group in MOPT. During negotiations, agreement wasreached regarding the composition and qualifications of MOPT's counterpartstaff for the Highway Maintenance Program. The appointment of consultants fortechnical assistance and MOPT's compliance with the agreed counterpart staff-ing for the Highway Maintenance Program is a condition for disbursement forequipment, spare parts and workshop and store extensions under the MaintenanceProgram.

F. Transport Sector Management

4.18 The recently created Sector Planning Office is receiving technicalassistance from the Netherlands Economic Institute to help it set up a properorganization for itself and initiate studies leading to the preparation of aNational Transport Plan for the country. Many of the basic activities requiredfor these purposes are well under way, a regionalization of the country hasbeen prepared, products for flow analysis have been grouped into categories,initial modal studies have been started and an intensive staff trainingprogram has been carried out over the last year. Yet, in order to accomplishthe final goal of designing a National Transport Plan, specialized technicalstudies may be needed. The project would help finance such studies. Specificrequirements would be agreed with MOPT as they arise (para. 2.13).

4.19 MOPT needs a comprehensive inventory of locally available road con-struction materials and has requested FONADE to help finance a countrywidestudy to produce such an inventory. This study would not only fill the gap inthe knowledge of available materials and their uses, but should also permitsubstantial economies of time and cost for future engineering designs andeliminate the utilization of unsuitable materials for road maintenance. Thestudy is expected to last two years and cost about US$1.0 million. OutlineTerms of Reference are given in Annex 4. The Government confirmed, duringnegotiations, its intention to initiate the proposed study by October 30,1977.

G. Logistic Support for Project Execution

4.20 MOPT and local consultants lack mobile laboratories for testing roadconstruction, especially asphalt works. To overcome this shortcoming, sixequipped mobile laboratories would be purchased by MOPT under the projectfor use by consultants supervising the Rehabilitation Program. Two sets ofdrilling equipment would also be provided to augment MOPT's aging stock andwould be utilized initially for the FONADE-financed material resources study.Few paved roads have traffic control lines in Colombia, due primarily to thelack of adequate painting equipment. Two sets of truck-mounted road markingequipment would be purchased for use by MOPT. The equipment would also behired out to contractors working on the Rehabilitation Program. The projectwould provide liaison vehicles for MOPT staff and consultants directly involvedin its implementation.

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H. Cost Estimates and Financing

4.21 The total cost of the project is estimated at US$153.75 million equiv-alent, of which US$90.0 million (about 58%), representing the estimated foreignexchange component, would be financed by the Bank. The remaining project costas well as necessary increases in MOPT's budget over the project period1978-1981 (estimated at US$246.0 million) would be financed by the Government(para. 3.23). The latter include expenditures for spare parts and periodicmaintenance, which, although essential for the success of the project, havenot been considered as project expenditures because of their recurrent nature.The amount also includes capital expenditures of US$32.0 million for replace-ment of equipment, most of which would be procured bilaterally by the Govern-ment. Details of costs for the road rehabilitiation program (70% of theproject) are given in Table 12. A summary of project costs is given on thefollowing page.

4.22 Construction cost estimates for the Rehabilitation Program are basedon detailed engineering prepared by Colombian consultants, the reviews carriedout by MOPT's Special Highway Programs Division and on unit prices for similarworks recently contracted. The average estimated construction cost is US$75,000per km, excluding supervision and contingencies. This is reasonable consideringthat about one-third of the costs are for stabilization, drainage and protec-tion works. Cost estimates for the vehicle weight control program are basedon typical layouts for similar schemes in Brazil adapted to Colombian conditionsand prices. As mentioned in paragraph 4.08, detailed engineering for theseitems would be available in 1978. Since the proposed weighing stations repre-sent only a small part of the project cost, this does not entail an unacceptablerisk.

4.23 Cost estimates for supervision by local engineering consultants arebased on past experience in Colombia and amount to about 10% of constructioncosts. The cost of the technical assistance to MOPT has been based on theaverage of US$50,000 per man-year. Most of this assistance is expected to beprovided by international firms or expatriate individuals. A total of about230 man-years of professional services would be required for constructionsupervision and technical assistance.

4.24 Estimates for spare parts and the items for logistic support for theproject have been based on detailed analyses of the requirements by UNIDO andMOPT and recent quotations obtained in Bogota. Nearly all goods would have tobe imported and the estimates are based on c.i.f. prices at port of entry.

4.25 A contingency of 10% of civil construction costs has been includedto allow for increases in quantities. Although allowance has been made in theengineering designs for further deterioration of the pavement in the periodbetween the site investigations and construction, some design modificationswill no doubt be required as the works proceed. Provision for future priceincreases has been calculated separately for all items following recent trendsin Colombia. Price escalation rates for civil works are greater than thosegiven in the most recent Bank guidelines due to the Government's policy ofincreasing the market price of petroleum products to parity with internationallevels (para. 3.12). Specific price escalation rates are shown at the bottomof the following page. The total price contingency provision amounts to anaverage of 26% of total base costs. The bulk of this provision relates to thefour-and-one-half-year Rehabilitation Program.

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pla= COST ESTDXAL3S AND rDn ICZ

BankUs$ U illio- Porticiltion(June 77 (USS)

Local Poreiga TotAl Locol Fored Totd Killi

I. Road Rebhbilitation ProXr_

Civil Works 1,368.96 1,368.96 2,737,92 37.20 37.20 74.40 37.20 50

Supervision 136.16 136.16 272.32 3.70 3.70 7.40 3.70 50

Coordination (specialist) 1.84 7.36 9.20 0.05 0.20 0.25 0.20 80

II. Vehicle Weight ContrOl Program

Phase II and III of ongoing study (consult.) 1.84 7.36 9.20 0.05 0.20 0.25 0.20 80

Civil Works 92.00 92.00 184.00 2.50 2.50 5.00 2.50 50

Weighing Equipment - 36.80 36.80 - 1.00 1.00 1.00 100

Supervision (consult.) 11.04 11.04 22.08 0.30 0.30 0.60 0.30 50

III. Highway Maintenance Program

Store and Workshop Extensions 29.44 29.44 58.88 0.80 0.80 1.60 0.80 50

Maintenance Equipment - 662.40 662.40 - 18.00 18.002, 18.00 100

Spare Parts for Repairs - 82.80 82.80 - 2.25 2.25 2.25 100

Spare Parts for Preventive Maintenance - 49.68 49.68 - 1.35 1.35 1.35 100

Technical Assistance 11.04 44.16 55.20 0.30 1.20 1.50 1.20 80

IV. Transport Sector Management

Sector Studies 1.84 7.36 9.20 0.05 0.20 0.25 0.20 80

Inventory of Road Construction Materials 7.36 29.44 36.80 0.20 0.80 1.00 0.00 0 3/

V. Logistic Support for Prolect Execution

Vehicles - 3.68 3.68 - 0.10 0.10 0.15 100

Road Marking Equipment - 5.52 5.52 - 0.15 0.15 0.15 100

Laboratory and Drilling Equipment _ 16.56 16.56 - 0.45 0.45 0.45 100

Base Cost (June 1977) 1,661.52 2,590.72 4,252.24 45.15 70.40 115.55 69.65

VI. Contingencies

Physical (10 of Civil Works) 149.04 149.04 298.08 4.05 4.05 8.10 4.85 50

Price Eacalation 507.84 599.84 1,107.68 13.80 16.30 30.10 16.30(26X of base cost) 4/ - - __-

Total Estimated Project Cost 2,318.40 3,339.60 5,658.00 63.00 90.75 153.75 90.00 58

1/ Estimated Col$ June 1977 value; rate of exchange Col$ 36.8 - US$1; local currency estimtes "aSu that devaluation will be

in line with domestic inflation via-a-vis USS.

2/ Government to procure an additional US$32.0 million for equipmet largely fs bilateral sources.

3/ Financing has been requested from POMADE (Fondo Naciomal de Daarrollo Economico)

4/ Price contingencies based on the following astimted _ a1 price increases:

- civil works: 1977-1979. 12X; 1988 end beyond, 1O0

- equipmeat and spare parts: 1977-1979, 8X

- consultants and specialists: 1977 ad beyo d; 1O0

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4.26 The estimates of the foreign exchange component of the various itemsare based on detailed analyses made by MOPT and reviewed by the Bank. Theforeign exchange component of civil works amounts to 50%, assuming that allcontracts would be awarded to local contractors, as was the case for the Fifthand Sixth Highway Projects. The estimated 50% foreign exchange component ofthe cost of local engineering consultants for supervision reflects the overallstate of development of the industry and the fact that it still has a degreeof reliance on specialized foreign technical expertise. The 80% foreignexchange component for advisory services reflects the assumption that most ofit is expertise not readily available in Colombia.

I. Disbursements

4.27 Disbursement of the loan would be made as follows: (a) 50% forcivil works and related supervision; (b) 80% of local expenditures or 100%of foreign costs for advisory services by consultants or individuals; and(c) 100% of the foreign expenditures for direct imports or 80% of the totalcost for imported goods locally procured or 90% of ex-factory costs forlocally manufactured equipment, spare parts and logistic support items. Theestimated schedule of disbursements is indicated in Table 14.

4.28 Retroactive financing of up to US$1.0 million equivalent would beprovided for civil works carried out since April 1, 1977 for the stabiliza-tion of critical sections of the Versalles-La Pintada, Pereira-La Felisa andIbague-La Linea-Armenia roads. These works should be completed before rehab-ilitation of the roadway commences. Early execution of the stabilizationworks, which require dry weather, will permit advancing the rehabilitationproper by at least six months. The stabilization works have been divided intonine lots (including those marked A in Table 12), and some have already beencontracted by MOPT (para. 4.30).

J. Execution and Procurement

4.29 The execution of the project would be the responsibility of MOPT.The project implementation schedule, covering all project elements and indi-cating Bank involvement, is in Chart 3. Construction contracts for theRehabilitation Program (except urgent stabilization and drainage works, para.4.30) would be procured by international competitive bidding in accordancewith Bank Guidelines. The Rehabilitation Program has been grouped for biddingpurposes into six time-spaced batches, each containing 4 to 10 lots (Table12). This would enable firms awarded contracts in the early batches to partic-ipate in later batches without overextending their capacity. The estimatedvalue of individual contracts would range from US$2.0 to US$4.0 million sothat middle size contractors would qualify to bid; large firms could bid onmore than one lot per batch. During negotiations, details of the batches anda schedule for bidding for the Rehabilitation Program were discussed andagreed.

4.30 The stabilization and drainage works (para. 4.28) are being contrac-ted under conditions and specifications similar to those for the rehabilita-tion works. The works are in relatively isolated zones, are concentrated andare comparatively small in size (lots under US$1,100,000). Foreign contractors,

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unless established in Colombia, would therefore not have been interested inthe works. For this reason, and in order to allow for an early start of work,bids were advertised locally only.

4.31 Extension works to stores and workshops in the districts are esti-mated at 5,000 sq. m. (about US$1.6 million) and the work would interest onlysmall local contactors. Bids would be advertised locally.

4.32 Contracts for construction and installation of the weighing stationswould be procured by international competitive bidding, in accordance with BankGuidelines, in two or three packages, depending on geographic location. Thepackages would be between US$1.5 and US$3.0 million and, although of greaterinterest to local firms, might be attractive to foreign contractors. Theweighing equipment would be procured by international competitive bidding, inaccordance with Bank Guidelines, and would most probably be of foreign manu-facture. In order to provide continual maintenance of the equipment, thesupplier would be required to set up local representation. During negotiations,details of qualification requirements and contract conditions for the weighingstation works were reviewed and agreed.

4.33 The civil works component of the project would have some impact onemployment, providing jobs for up to about 3,000 skilled and unskilled workersover the four- to five-year period during which the project is being executed.

4.34 Procurement of spare parts, the maintenance equipment and the logis-tic support items would be carried out by international competitive bidding inaccordance with Bank Guidelines. Provision for about one year's supply ofspare parts would be included with the equipment purchases. The supplierwould present with his bid for equipment a priced scaling list of spare partswhich would be guaranteed for one year after delivery of the equipment. Spareparts for specific makes of existing equipment would be procured directlyfrom established dealers in accordance with a purchase program acceptable tothe Bank.

4.35 The Bank would review and approve ex-ante all bid documents andspecifications for civil works, equipment, spare parts and logistic supportitems. However, given the very strict basis for contracting contained inDecree 150 (para. 3.17), contract awards for (i) civil works and (ii) equip-ment, spare parts and logistic support items amounting to less thanUS$3,000,000 and US$1,500,000 respectively would be reviewed on an ex-postbasis, with the Bank retaining the right to exclude from financing suchcontracts not awarded according to Bank Guidelines and to cancel the respec-tive amount from the loan. Procurement procedures were reviewed and agreedduring negotiations.

4.36 Indicators by which the project would be monitored are given inAnnex 5. The purpose of project indicators and the specific indicators tobe used for this project were agreed during negotiations as well as thearrangements for collecting information during and after the implementationstage.

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K. Project Risks

4.37 The Rehabilitation Program presents no special risk. Particularattention was given during pruJecL pieparation to the major sources of imple-mentation problems encountered in past highway construction projects. Allroad sections have been engineered in detail and are ready for bidding.Localized stabilization of select sections is already under way. The streng-thening of MOPT's capacity to administer and coordinate the RehabilitationProgram is a condition for disbursement (para. 4.17). The financial require-ments of the program have been measured against conservative estimates offuture revenues of the Highway Fund, which would be supplemented as necessaryby contributions from the general budget (para. 3.23).

4.38 Past attempts to improve maintenance have been only partiallysuccessful and short-lived. The main reasons for this have been a lack ofpermanent Government commitment and a piecemeal approach. Every effort hasbeen made in the preparation of the proposed Program to develop a coherentframework for upgrading highway maintenance; corrective measures aimed atmajor deficiencies have been formulated into specific covenants with deadlinesand quantified minimum requirements, particularly increases in maintenanceexpenditures (para. 3.23) which are the foundation of the proposed maintenanceprogram. Upgrading a public service institution such as MOPT, involvingdozens of field units, is an undertaking which clearly entails higher risksthan, say, a construction contract. In the case of the proposed maintenanceprogram, these risks have been reduced sufficiently to allow reasonable hopeof success.

4.39 Past efforts to strengthen enforcement of vehicle weight control inColombia have failed to have a long-lasting impact. This has been due notonly to inadequate physical facilities, but to lack of continuing commitmentand, possibly also, lack of specific targets and organizational arrangements.The study included under the project would provide a basis for developing(a) Government commitment and public support, in particular, by associatingthe road transport industry to the objectives of the program; and (b) specificimplementation measures. The disbursement conditions in paragraph 4.09 wouldprovide adequate protection against the risk of building physical facilitieswithout a firm and broadly based commitment to enforce weight limitations on apermanent basis.

5. ECONOMIC ASSESSMENT

A. General

5.01 A detailed economic assessment has been made of the three maincomponents of the project for which quantifiable benefits could be estimated.These are the Road Rehabilitation Program, the Highway Maintenance Programand the Vehicle Weight Control Program. These three programs account forabout 99% of the estimated project base costs. Non-quantified benefits whichmay accrue as a result of the investments are discussed as each program isreviewed. Included among these non-quantified benefits is that of keeping

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the roads open to traffic at all times, an all-important factor given that theroads involved are the trunk highways, the backbone of the transport system.Also not quantified is the fact that all the roads involved in the Rehabilita-tion Program, by virtue of being the trunk system of the country, are roadsleading to ports and, therefore, are key links in the country's exports. Theircontinuing deterioration and eventual interruption would affect the country'scapacity to export and would disrupt domestic economic activities. The "with-out project" alternative has, therefore, much higher costs or disbenefitsthan have been allowed for.

5.02 Benefits of the proposed project would accrue to the economy atlarge in the form of avoided further increasing vehicle operating costs, whichwould eventually affect the prices of exports and internally consumed goods.Financially, the immediate impact of the execution of the project would befirst appreciated by the road transport industry. The industry, being reason-ably competitive in Colombia, would, in the long run, have to pass on thesefinancial benefits to the rest of the system, thereby ensuring an equitabledistribution of the effects of the project. Because the income distributioneffect of the project is estimated to be limited, the social rate of return ofthe project, had it been accurately assessed, would likely have been close to,or slightly lower than,the economic return.

5.03 In carrying out the economic assessment of the different componentsof the proposed project, adjustments have been made, insofar as practicable,to eliminate the influence of taxes and subsidies. The adjustment factor wasestimated to be 0.8, which is in line with similar estimates made for theeconomy as a whole where a value of 0.84 has been determined. Economic costsnet of taxes and subsidies have been estimated for construction and investmentcosts, vehicle operating costs, maintenance costs, etc. However, no correspond-ing adjustment has been attempted to counterbalance distortions in the exchangerate. The use of a shadow exchange rate would make little difference to theresults obtained because the structure of costs and benefits in the economicanalysis is similar insofar as it is made up of essentially the same elements,e.g., petroleum products (fuel, asphalt), equipment, spare parts etc. Bothsides of the equation being affected by a similar proportion, the resultsremain largely invariant. Similarly, no attempt was made to shadow price thecost of labor. Implementation of the Rehabilitation Program has ratherlimited employment effects because paving works are capital intensive innature. Similarly, the Weight Control Program is of such comparatively smallscale that shadow pricing labor would have a negligible influence. TheMaintenance Program would use no more labor than presently employed byMOPT (para. 3.23), and shadow pricing it would only increase the returns ofthe program which are already estimated above 100%. Finally, implementationof the project involves negligible expropriation of land and, therefore, noshadow price has been used for it.

B. Road Rehabilitation Program

(i) General

5.04 All 33 road lots in the program were evaluated using the samemethodology. Each lot is independent of all others and was therefore analyzedseparately; there is, however, a joint assessment of the Program as an entire

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entity (para. 5.08). The analysis compares economic costs of civil works,including supervision and physical contingencies, and maintenance costs(Table 15) with the benefits arising from vehicle operating cost savings(Table 16) of the alternatives of not rehabilitating the roads, the "without"project case, -Ad and that of doing so, the "with" project case. Details aregiven in Annex 6.

(ii) Analysis and Returns for Each Individual Section

5.05 Results of the evaluation for each lot are given in Table 17; ratesof return based on the best estimates of the intervening variables (being themean value of the variable) vary from about 14% to well over 50%; on thisbasis, all subprojects would yield returns above the opportunity cost ofcapital, which is estimated for Colombia at 11%. Table 17 also shows theresults of a risk analysis performed for each lot and the variations fromthe best estimates (mean of the distribution) used for this analysis. Themean and standard deviations of the probability distribution of the rate ofreturn for each lot, as well as the probability of the rate of return beingless than the opportunity cost of capital, 11%, are indicated. There is avirtual assurance that yields higher than the opportunity cost of capitalwill be obtained on all lots. On four lots (10, 11, 22 and 28), returns above50% can be expected; such high returns occur because many of the rehabilita-tions are long overdue.

5.06 There are a few lots with comparatively lower rates of returndespite the fact that the least cost alternative has been considered. Thesecases occur because, as in the road from Fundacion to La Ye (Lots 17, 18and 19)--part of the Eastern Trunk Highway--the rehabilitation involvesnot only bringing the existing road surface up to standard but also someimprovement of the currently underdesigned road. In this specific case,shoulders are being added, curves are being made safer and, in general, thesame design standard which has been used throughout the Eastern Trunk highwayis being followed. In other instances such as the road from Carreto toCartagena (Lots 20, 21 and 22)--part of the Western Trunk Highway--costsare comparatively high because the pavement requires more than average streng-thening due to poor soil conditions. In some other cases, particularly thosein mountainous areas with highly unstable terrain, the rehabilitation includescarrying out expensive complementary stabilization and protection works whichare not reflected in vehicle operating cost savings but in the avoidance ofthe roads being periodically closed to traffic, a benefit which has not beenassessed.

5.07 In general, in designing the least cost alternative, the point ofview was taken that there should be a high degree of confidence that thestructure would remain in place for the length of its estimated life, 10years. This implies that, especially in mountainous regions, expensiveprotection and stabilization works had to be considered. All the roads in theprogram are paved roads, and instability of the roadbed cannot be toleratedbecause it causes cracking and breaking up of the pavement. Execution of thestabilization and protection works is not only essential for having a pavedroad, but also has the effect of limiting, if not eliminating, the occasionswhen the road is closed to traffic. A simple estimate of the number andduration of occasions when the road would be closed is difficult and clearlynot enough to determine the effect of these occasions as increased costs

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associated with the "without" alternative. The return on some lots is there-fore understated, particularly for roads crossing difficult and unstableterrain such as Oiba to Piedecuesta (Lots 23, 24 and 25), Ibague to Armenia(Lots 12, 13 and 14) and Medellin to Pintada (Lots 1 and 2). To compensatefor this understatement of benefits, a special landslide removal cost has beenassessed against the "without" project alternative on these mountainous roads(Table 15).

(iii) Analysis and Return for the Full Program

5.08 Based on the best estimate of the variables described above foreach individual lot (column 1 of Table 17), the economic return for the fullRehabilitation Program was computed. The program has a weighted economicreturn of 36% and first year benefits of 23% and is therefore well justified.

C. Highway Maintenance Program

(i) General

5.09 To appraise the economic return of the highway maintenance invest-ments proposed in the project, a combination of a newly developed highwaydesign and maintenance (HDM) model and the Bank's traditional return analysismodel (CBPACK) were used. The HDM model was used in its simplest form toestimate the total cost of transport, including vehicle operating costs andmaintenance costs, for the total Colombian national highways network in twosets of conditions: the existing maintenance policies in the country, "with-out" project case, and those that would be made possible by the implementationof the project, "with" project case.

5.10 A typical run of the HDM model starts with the maintenance submodel,which estimates total maintenance cost in each year of the analysis given thedeterioration of the road caused by the specified traffic and climate. Vehicleoperating costs are estimated using the details obtained from the road deterior-ation submodel together with the geometry of the road. Fuel consumption, tirewear, vehicle maintenance and depreciation costs are calculated and are usedin conjunction with traffic forecasts to give a total vehicle operating costfor each year analyzed. Maintenance and user costs thus derived are used toestimate project appraisal criteria such as the economic rate of return,benefit/cost ratio and net present value of the proposed Program.

(ii) Analysis and Return of the Program

5.11 The economic evaluation, details of which are in Annex 6, was basedon comparing the total incremental economic maintenance costs with the incre-mental economic user benefits generated by the program. A 10-year analysisperiod was considered appropriate since policy changes are liable to occurover longer periods of time.

5.12 Based on unit maintenance costs, the estimated present condition ofthe network and the maintenance policies ("with" and "without" project) whichare described in Annex 6, the cost streams shown on Table 18 were calculatedfor two mutually exclusive alternatives. The first considers that only alimited amount of rehabilitation is done beyond the Rehabilitation Program

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included in the project. 1/ The second alternative assumes that a fairlylarge rehabilitation program is carried out, particularly during the initialyears of Program implementation. Table 19 summarizes the economic appraisalcriteria of the two alternatives; both of them generate rates of return wellover 100%, suggesting that whether limited or extensive rehabilitation iscarried out as a matter of maintenance policy, implementation of the HighwayMaintenance Program is highly beneficial to the country. However, the alter-native in which rehabilitations are carried out when ideally required (which,because of the present condition of the network would occur in the first fewyears of Program implementation) produces a higher net present value than thealternative in which only limited additional rehabilitation (about 1,000 km inthe 10-year analysis period) is done. This suggests that, in the absence ofbudgetary or other constraints, it would be advisable for the Government torehabilitate the paved network, particularly surface treated roads, as soonas possible. Constraints exist, however, both on the budget and on thecapacity of the contracting industry to carry out such an extensive program,and, therefore, the program with limited additional rehabilitation would seemmore appropriate.

5.13 Implementation of the Highway Maintenance Program with limited addi-tional overlays and rehabilitations would demand additional Government re-sources in line with those stated in paragraph 3.23. In the period 1978-1981,an average increase of US$32.0 million over the 1977 budgetary appropriationand about US$26.0 million over the estimated 1977 effective outlay for highwaymaintenance (Table 20) would be required.

D. Vehicle Weight Control Program

(i) General

5.14 Enforcement of weight control regulations would significantly reduce,if not eliminate, overloading of trucks. Its major impact would be to lessenpavement fatigue, thereby reducing routine maintenance requirements (pot-holefilling and patching), as well as the need for early overlays and/or eventualreconstruction. The program would prevent increases in vehicle operating costscaused by rapid pavement deterioration. The elimination of systematic over-loading would also result in safety on the roads being improved. The effectof the controls on the trucking industry, specifically the efficiency in theutilization of its vehicles, has not been taken into account in the analysis;an attempt will be made to assess this impact as part of the ongoing study ofweight controls (para. 4.08). Most of the benefits of the Program are dif-ficult to quantify; recent studies in Brazil and Australia suggest, however,that the savings from improved weight control are quite high compared to therelatively small cost of an enforcement program.

(ii) Analysis and Return of the Program

5.15 The economic evaluation, details of which are in Annex 6, comparesthe costs of the program against an estimate of the benefits arising only fromdeferral of overlays on that part of the paved network with traffic presentlyabove 1,000 vehicles per day. Both in the "with" and "without" cases, it

1/ It was assumed that the Rehabilitation Program included in the projectwould be carried out irrespective of the Highway atintenance Program.

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has been assumed that overlays would be carried out when economically justi-fied. If this were not the case, the increased vehicle operating expenseswould lead to higher estimates of the benefits. The determination of the timeat which overlays would be economically justified was based on Colombiandesign standards (1970). The costs of overlays were derived from estimatesprepared for the Rehabilitation Program. In the absence of detailed truckloading surveys, existing overloading was estimated on the basis of judgmentreflecting familiarity with Colombia's trunk road network. It is asumed thatthe effect of the enforcement program would be to eliminate all loading inexcess of 10% over the legal limit. These assumptions lead to a rate of returnof about 46% considering an economic life of 10 years. Due to the Program,requirements for overlays would be reduced from about US$28 million annuallyto about US$17 million. The above estimates confirm the high priority of theenforcement of weight control.

6. AGREEMENTS REACHED AND RECOMMENDATION

6.01 During negotiations, agreement was reached with the Government onthe following:

(a) establishment within MOPT of a separate unit for highway planningby December 1, 1977 (para. 2.14), together with its terms ofreference, staffing requirements and specific measures for itsestablishment (para. 3.10);

(b) intention of the Government to supplement the National HighwayFund's revenues as necessary through the project period 1978-1981,to achieve the agreed level of maintenance expenditures and tofinance its share of the project costs (para. 3.12);

(c) starting in 1978, MOPT to plan and implement a program of periodicmaintenance, on a continuing basis, to include, over the projectperiod (1978-1981), an average of at least 400 km annually (para.3.19);

(d) schedule of minimum requirements for routine, periodic and emergencymaintenance of the national network (para. 3.23);

(e) during the project period, MOPT expenditures for personnel andrelated overhead to be not more than 50% of the aggregate totalexpenditures (net of Bank contributions) for routine, periodicand emergency maintenance (para. 3.23);

(f) MOPT to consult with the Bank before June 30, 1978 on measuresto adjust the composition of the personnel attached to thedistricts in relation to their needs (para. 3.23);

(g) the need to rehabilitate bridges along four road sectionsconcurrently with the rehabilitation of the roads (para. 4.04);

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(h) staffing of MOPT's Special Highway Programs Division forcoordination of the Rehabilitation Program (para. 4.07);

(i) additions to the Terms of Reference for the study to develop adetailed enforcement program for vehicle weight control (para.4.08);

(j) development, not later than February 28, 1978, of a plan of actionto implement the regulatory and legal framework, institutionalarrangements and development of public awareness relating to vehicleweight control (para. 4.09);

(k) funds for the weighing station program category of the loan not tobe transferred to any other category and, if not disbursed, tobe cancelled (para. 4.09);

(1) Government to provide MOPT with sufficient funds to completethe Equipment Replacement Program and MOPT to complete theongoing scrapping program by December 31, 1978 and continuethereafter to dispose systematically of aged equipment(para. 4.12);

(m) procedures for assessing the equipment to be included in therepair program (para. 4.13);

(n) details of the Preventive Maintenance Program and the reorganiza-tion of MOPT's purchasing, warehousing and distribution procedures(para. 4.14);

(o) scope and timetable of extensions to workshops and stores(para. 4.15);

(p) consultants to be selected for the Highway Maintenance Program,as well as their terms of reference and conditions of employmentbeing acceptable to the Bank (para. 4.16);

(q) composition and qualifications of MOPT's counterpart staff to thetechnical assistance for the Highway Maintenance Program (para. 4.17);

(r) intention of the Government to initiate the FONADE-financed studyof locally available road construction materials by October 30,1977 (para. 4.19);

(s) details of the batches and a schedule for bidding for theRehabilitation Program (para. 4.29);

(t) details of qualification requirements and contract conditionsfor the weighing station works (para. 4.32);

(u) procurement procedures and the Bank's review of procurement forcivil works and equipment, spare parts and logistic supportitems (para. 4.35); and

- 35 -

(v) the purpose of project indicators, the specific indicators to beused for the project, and the arrangements for collecting informa-tion during and after the project implementation stage (para. 4.36).

6.02 During negotiations, assurances were obtained from the Government onthe following:

(a) routine, periodic and emergency maintenance activities would beidentified and budgeted separately from other non-maintenanceactivities from 1978 onward (para. 3.18);

(b) MOPT would continue systematic renewal of the fleet on an annualbasis (para. 3.20); and

(c) purchase of spare parts on an annual basis would be funded andcarried out to maintain the fleet at an adequate level of avail-ability, and the existing backlog of unpaid suppliers' billswould be cancelled or refinanced by March 31, 1978 (para. 3.21).

6.03 The following are conditions of disbursement for the correspondingparts of the project:

(a) recruitment of the Coordinator and at least four of the agreed coor-dinating staff for MOPT's Special Highway Programs Division would bea condition of disbursement for civil works and the constructionsupervision (para. 4.07);

(b) before disbursing for construction of the weighing stations, MOPTwould satisfy legal, staffing, funding and public relationsrequirements and assure that the trucking industry has beenassociated with the development of the vehicle weight program(para. 4.09);

(c) the reorganization of MOPT's supply and distribution procedureswould be accomplished before purchasing spare parts for preven-tive maintenance (para. 4.14); and

(d) the appointment of consultants for technical assistance on theHighway Maintenance Program and MOPT's compliance with the agreedcounterpart staffing would be a condition for disbursement forequipment, spare parts and workshop and store extensions under theMaintenance Program (para. 4.17).

6.04 Subject to the above, the project constitutes an adequate basis forBank lending of a total amount of US$90 million equivalent to the Republicof Colombia; the term would be 17 years, including a three-and-one-half-yeargrace period.

June 16, 1977

TABLE 1

COLOMBIA

SEVENTH HIGHWAY PROJECT

IBRD-IDA Involvement in Colombia Transport

Highways

Loan 43-CO 1951 US$ 16.50 First Highway Project

Loan 84-CO 1953 US$ 14.35 Second Highway Project

Loan 144-CO 1956 US$ 16.50 Third Highway Project

Loan 295-CO 1961 US$ 19.50 )Fourth Highway Project

Credit 05-CO 1961 US$ 19.50

Loan 550-CO 1968 US$ 17.20 Fifth Highway Project

Loan 680-CO 1970 US$ 32.00 Sixth Highway Project

135.55

Railways

Loan 68-CO 1952 US$ 25.00 First Railway Project

Loan 119-CO 1955 US$ 15.90 Second Railway Project

Loan 267-CO 1960 US$ 5.40 Third Railway Project

Loan 343-CO 1963 US$ 30.00 Fourth Railway*Project

Loan 551-CO 1968 US$ 18.30 Fifth Railway Project

Loan 926-CO 1973 US$ 25.00 Sixth Railway Project

119.60

GRAND TOTAL 255.15

Source: IBRD

March 1977

TABLE 2

COLOMBIA

SEVENTH HIGHWAY PROJECT

Public Sector Investment in Transport (1966-75)(Millions of currpnt Pesos)

YEAR ROAD_/ RAILk' MARINE INLD. WATER AIR TOTAL

1966 760 90 157 17 19 1,063

1967 887 135 163 26 108 1,319

1968 1,174 195 100 24 113 1,606

1969 1,367 119 83 33 104 1,706

1970 1,555 185 119 42 114 2,016

1971 1,956 185 88 44 168 2,441

1972 2,146 143 51 65 172 2,618

1973 2,062 210 61 79 211 2,623

1974 2,360 150 222 100 436 3,268

1975 1,908 570 240 112 350 3,180

a/ Does not include investments by departments, municipalities,regional authorities, or private entities. Refers only toinfrastructure and not to vehicles, which are included in othermodes except air.Also, includes maintenance which is treated as an investmentalthough a very high proportion of expenditures are current expensesand not investment.

b/ Investment in local currency only, does not include foreignloans or credits except 1975 when the comparatively high figureincludes disbursementsunder Bank's Sixth Railway Project.

Source: National Planning Office

March 1977

TABLE 3

COLOMBIA

SEVENTH HIGHWAY PROJECT

National Highway Network (1965-75)(km)

PAVED UNPAVED TOTAL % PAVED

1965 3,497 13,982 17,479 20

1966 3,572 13,992 17,564 20

1967 3,853 14,144 17,997 21

1968 4,235 14,607 18,842 22

1969 4,499 14,768 19,267 23

1970 4,821 15,094 19,915 24

1971 5,023 14,994 20,017 25

1972 5,957 14,319 20,276 29

1973 6,446 13,692 20,138 32

1974 6,768 14,075 20,843 32

1975 6,947 14,007 20,954 33

Total Road System (December 1975)(km)

PAVED UNPAVED TOTAL % PAVED

National 6,947 14,007 20,954 33

Departmental 780 26,774 27,554 3

Municipal and

Community - 2,&79 2,479 0%

Total 7,727 43,260 50,987 18%

Source: MOPT

March 1977

TABLE 4

COLOMBIA

SEVENTH HIGHWAY PROJECT

Road Vehicle Fleet (1963-76)(Annual reRistrations)

PASSENGER FREIGHT TOTAL

1963 131,832 81,568 213,400

1964 135,726 85,691 221,417

1965 139,892 88,352 228,244

1966 156,034 95,073 251,107

1967 166,957 98,037 264,994

1968 195,843 106,724 282,567

% growth 1963-68 8.2% 5.5% 5.8%

1969 219,827 77,652 297,479

1970 238,499 83,500 321,999

1971 283,839 91,380 375,219

1972 306,201 103,733 409,934

1973 296,209 137,637 433,846

1974 321,974 143,749 465,723

% growth 1969-74 7.9% 13.1% 9.4%

1975 342,732 150,629 493,361

1976!' 352,254 153,681 505,935

% growth 1970-75 7.5% 12.5% 8.9%

1/ To September 1976

Sources: 1963-1968 DANE

1969-1973 INTRA

March 1977

TABLE 5

COLOMBIA

SEVENTH HIGHWAY PROJECT

Estimated ADTIJ at Select Points of the Road Network-.' (1971-75)

% growthStation (road from - to) 1971 1972 1973 1974 1975 1971 - 1975

Caqueza (Bogota-Villavicenio) 1.051 1.046 1.152 1.115 1.184 3.02

Cajamarca (Ibague-Armenia) 1.530 1.568 1.734 1.874 1.991 6.81

Fusagasuga (Bogota-Girardot) 3.751 3.787 4.380 4.709 5.117 8.07

Chusaca (Bogota-Girardot)3/ 2.605 2.903 3.402 4.025 4.506 14.68

Guacari (Palmira-Buga) 4.183 4.373 4.797 5.099 5.317 6.18

Villeta (Bogota-Honda) - - 1.338 1.398 1.422 3.09

Hatillo (North of Medellin) 1.179 1.179 1.320 1.523 1.609 8.08

Versalles (South of Medellin) 1.445 1.581 1.831 1.752 1.912 7.25

Choconta (Bogota-Tunja) 2.589 2.754 2.882 3.089 3.173 5.22

Moniquira (Tunja-Barbosa) 955 1.066 1.125 1.217 1.225 6.42

Santander (Cali-Popayan) 1.248 1.414 1.514 1.681 1.803 9.63

Arroyo Piedra (Cartagena-Barranquilla) 1.361 1.385 1.558 1.606 1.800 7.24

Cienaga (Sta. Marta-Fundacion) 1.352 1.525 1.563 2.080 2.329 14.56

Neiva (Neiva-Espinal) - - 993 1.092 1.183 4.15

Pamplona (Bucaramanga-Cucuta) - 982 1.040 1.069 1.204 7.03

Weighted average growth (1971-1975) 8.13

1/ Average Daily Traffic unadjusted for seasonal variations when based on less than fullyear count.

21 Where automatic counters are installed.

3/ via new Silvania road

Rource: MOPT

October 1976

TABLE 6

COLOMBIA

SEVENTH HIGHWAY PROJECT

National Highway Fund

Revenues 1970-1976(nominal and constant denomination in millions)

Total Gasoline Tax Ot-herllCurrent Constant Current Constant Current Constant 2 /Col$ 1967 Col$j/ Col$ 1967 Col$-2 Col$ 1976 Col$-

1970 1,555 1,191 767 589 787 604

1971 1,957 1,359 933 648 1,024 711

1972 2,146 1,293 1,200 723 946 570

1973 2,182 1,213 1,189 661 993 552

1974 2,676 1,250 1,207 564 1,468 686

1975 2,725 970 1,654 589 1,071 381

1976 3,687 940 2,615 667 1,072 273

1/ Mainly Government contributions, foreign loans and own resources (see Table 7)

2/ Deflated by means of a composite highway construction cost index 1967 = 100

1967 1968 1969 1970 1971 1972 1973 1974 1975 1976

100.0 111.9 121.8 130.2 143.9 165.9 179.9 213.9 281.6 392.3

Source: MOPT, Mission

nlarcn 1977

UASLE 7

COLO9OIA

SEVENTH HIGUWAY PROJECT

vational Hishvav Fund

Revenues 1970-1976tnouMa t 9 ..o.

1970 1971 1972 1973 1974 1975 1976

Gasoline Tax 767,382 932,700 1,200,400 1,188.927 1,207.394 1,654,494 2,614,785

Government coutribution 313,641 280,249 101,870 94,759 55,013 684,251 178,017

1BRD Projects 53,739 200,686 163,828 93,958 22,426 19,996 230

'DB Projects 60,970 131.841 179,963 143,601 128,737 23,657 35,526

FONADE contracts - - 1.303 18,292 28,317 29,136 15,602

US Government donation forInterasarican Highway - - - 1,580 253 - 3,014

Own Resources 47,737 49,800 98,795 67,068 78,229 111,848 117,845

Previous Balance carry-ovwr 125,140 45,886 - 278,325 266,459 43,583 -

Dutch Government credit - - - - - 111,642

SUB-TOTAL 1,368,609 1,641,162 1.746,159 1,8i6,510 1,786,828 2,566,965 3,076,661

Unappropriated Revenues 1/ 186,044 315,643 400,139 295,129 888,759 155,103 610,568

T 0 T A L 1,554,653 1,956,805 2,146,298 2,181,639 2,675,587 2,725,068 3,687,229

ISweralitres 1970-197

6(ro TOf S1

1970 1971 1972 1973 1974 1975 1976

Studies and Technical Serviceas 26,759 27,301 27,921 55,837 85,123 60,508 119,261

Bridges 67,062 86,475 72,850 84,844 86,124 132,688 100,841

Trunk Highways (North-South) 461,577 492,101 500,724 486,628 482,047 410,160 696,871

Trunk Higibays (last-Weat) 132,236 187,630 214,446 288,018 367,134 368,829 379,506

Other Highways 107,608 103,273 131,953 153,646 196,508 233,148 164,515

Access to cities 21,052 47,992 57,982 57,936 107,868 23,918 53,232

Paving Progrs 133,023 220,526 277.295 178,680 207,782 223,348 414,182

Hidraulic Works 42,118 44,740 65,552 78,671 123,868 162,732 277,416

Rshabilitation - - - - - - 92,792

Highway Maintenance 425,788 515,210 561,354 538,984 780,225 871,8U7 966,112

Other expenditures 13,930 62,865 32,117 8,129 56,246 39,564 249,141

SUB-TOTAL 1,431,153 1,788,114 1,942,194 1,932,173 2,492,925 2,526,782 3,513,869

Contribution to Nationalleeder Roads Fund 123,500 168.691 204,104 209,466 182,662 198,286 173,360

1,554,653 1,956,805 2,146,298 2,181,639 2,675,587 2.725,068 3,687,229

/ Difference between aopropriated revenues snd actual expenditures;normally financedwith subsequent year's budgetary appropriations.

Source: MoT

March 1977

TABLE 8

COLOMBIA

SEVENTH HIGHWAY PROJECT

National Highway Fund

Expenditures 1970-76(nominal and constant denomination in millions)

Total Construction Maintenance OtherCurrent Constant Current Constant Current Constant Current ConstantCol$ 1967 Col$1/ Col$ 1967 Col$- Col$ 1967 Col$- Col$ 1967 Col$-

1970 1,555 1,191 904 694 427 326 224 172

1971 1,957 1,359 1,090 757 515 358 352 245

1972 2,146 1,293 1,197 721 561 338 388 234

1973 2,182 1,213 1,193 663 538 299 451 251

1974 2,676 1,250 1,340 626 780 365 556 260

1975 2,725 970 1,368 486 872 310 485 172

1976 3,687 940 1,756 448 966 246 965 246

1/ Deflated by means of a composite highway construction cost index 1967=100, see Table 6.

Source: MOPT, Mission

March 1977

TABLE 9

COLOMBIA

SEVENTH HIGHWAY PROJECT

National Highway Fund

Estimate of Future Revenues and Expenditures 1977-1981

(Millions of Col$)

Revenues

19771/ 1978 1979 1980 1981

Gasoline Tax 4,200 4,600 5,400 5,80U 6,000

Government Contributiors-2/ 400 1,300 970 695 485

Other 3/ 200 320 290 315 335

TOTAL 4,800 6,220 6,660 6,810 6,820

Expenditures

19771' 1978 1979 1980 1981

Studies and Technical Services 70 105' 115 125 135

Construction 2,780 3,381 3,385 3,175 2,700

Maintenance 1,400 2,200 2,600 2,900 3,300

Other 510 534 560 610 685

TOTAL 4,800 6,220 6,660 6,810 6,820

1/ Expected Revenues and Expenditures at end of year.

2/ Mainly foreign loans by IBRD and IDB.

3/ Includes own resources, which are the product of a rudimentary toll system, thesale of scrap equipment and obsolete materials and domestic borrowing.

Source: MOPT

March 1977

COLOMBIA

SEVENTH HIGHWAY PROJECT

Evolution and Composition of Regular Gasoline Prices (1975-77)

(Col $ per gallon)

HighwayRefinery Fund Sales Deptl. Wholesale RetailPrice Tax Tax Tax Transport Distrib. Distrib. Price

1975 Jan.-Aug. 1.31 1.44 0.16 0.04 0.13 0.20 0.19 3.47Sept. 1.44 1.59 0.21 0.04 0.17 0.30 0.25 4.00Oct. 1.53 1.69 0.22 0.04 0.21 0.31 0.25 4.25Nov. 1.61 1.78 0.24 0.04 0.25 0.33 0.25 4.50Dec. 1.69 1.87 0.26 0.04 0.29 0.34 0.25 4.75

1976 Jan. 1.77 1.96 0.28 0.04 0.48 0.35 0.27 5.15Feb. 1.87 2.08 0.30 0.04 0.52 0.36 0.28 5.45Mar. 1.97 2.19 0.32 0.04 0.57 0.37 0.29 5.75Apr. 2.05 2.28 0.33 0.04 0.62 0.38 0.30 6.00May 2.16 2.41 0.37 0.04 0.77 0.39 0.31 6.45June 2.28 2.54 0.39 0.04 0.93 0.40 0.32 6.90Jul. 2.38 2.66 0.42 0.04 1.11 0.41 0.33 7.35Aug. 2.50 2.79 0.42 0.04 1.25 0.42 0.38 7.80Aug.-Dec. 2.67 2.99 0.50 0.04 1.48 0.44 0.38 8.50

1977 Jan. 3.03 3.39 0.60 0.04 2.06 0.47 0.41 10.00

Source: MOPT

March 1977

H

CH

TABIE 11

COLaDHIA

SEVE8TI HIGHWAY PROJECT

History of Csoatruction and Periodic Hainteacoce on Sectioet for RehabilitatiOn

YEARE P A V E M E N T PERIODIC MAINTENAN1CE

ROAD LOT LENGTHPAVED TYPE I/ . WIDTH TYPE YEAR

MedelOO,s-P,nt.d. Tao lot. 76 1952 AC 6.20 C 0.75 3 c, sea1 (51 km) 1968

Pereir.-La Pinctd. P-ri-a-Ai.a (K. 4-4) 41.6 1957 AC 6.70 + 0.00 - 0.50 3 s,A.C. (14 km,) 1970

Asi.-E,s 79 35 1957 AC 6.60 * 0.00 - 0.50

F.s 79 -1V. 100.5 21.5 1957 AC 6.60 .0.00 -0.50 3 cA.C. (I Ik,) 1970

Es. 100.5 - L. Pelisa 30.5 1957 AC 6.70 * 0.00 - 0.50-

C-rta8e-O... ri Five lots 100 1953 M-acdm 6.40 * 1.00 - 1.50 5 ccA.C. (78 ks,) 1972-1974

lb.q.e-Aeseeia is 56-Es, 135 82.3 1953 Siacdee 6.50 + 0.00 - 0.50 5 ceA.C. (16 ks,) 1970-1972

B.g.t.a-H.nd. Faat.ti-e-Villet. 42.5 1957 AC 7.00 * 0.50 4 ...sea (10 ks,) 1972

Villet.-Kscda 30 1957 AC 7.00 * 0.50-

Fuedac-Lo-. Ye Three I... 63 1952 AC, 5.80

-6

.50r0.50-1.O00

Cerrete-C-ragea ~ Thre- lot. 68 1954 AC 5.60-6.7040.50-1.00 3 ra sea (68 Ins) 1969

Oiba-Pi.d--,,et. Thre l.ts 100.6 1953 DST 6.30-7.20+0.00-1.00 D.S.T. (5 ks,) 1972

1962 AC (23 kns) 7Cs A.C. (1.0 ke) 1970

1961 DST (13 kcm) 4 c A.C. (50 ks,) 1960

Bun-r,ea,,a-Ei Pisyon One It 25 0966 AC 6.80 - 7.20 + 1.00-

Pmplcee-1.a D-njua Do. lot 44 1954 AC (17 Icm) 7.00 4. 0.00 - 1.00 seal (25 kne) 1970

DST (26 ice) seal (9 ke) 1972

C-UCta-Zulla Es, 2-ia, 12 10 1962 DST 7.00 4 1.00

Cu-ta-Vills del Rosar~i. Es, 0-i,, 7 (4-lac) 14 0964 5 Ce AC 217.00 + 0.00- 3.00-

Vect.queaeda.-Pope V-~tq.qvad.-Tcm3. 9.7 1965 AC 7.00-3.69+1.00-1 .50

TueJ.-P.ipa 37 1970 DST 6.70-7.40,1.10-1.40 3 cc A.C. (18 ks,) 1969

3 c. seal (6 ks,) 1973

Paipa.B.Bl.s,ct. One lot 41.6 1967 1 i,sa 7.00 . LOG0 - 1.50 D.S.T. (25 kcc) 1971

Ceetilla-Helva Th-e lets 106 1966 AC 7.00 + 0.00 - 0.50 Seal (70k.1) 1974

it AC - Asphalt conc..ete pave,et

lDST 11 - Double aurf.ee treated asphalt pavecet

Sore: DPT

March 1977

TAM 12

COLCs

load 1 LUb6 lttio. inn

(4oos_dc Cost. s Drc. IS/l o 04. sg so3tC; hind.1

t In t 2. of J-e 1977 US)

I-or as. soya Ri/~~~~3&j7ifl -1/ Fl taco 8 8 N 8f as 33i1.0T mM C o OT TOOIL 1977 197 1879 1988 11

_~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~U US _ _1 I I I

18/ M.2.14L-Yu....H..a SW 7,533| 228.3 328.1 328.1

2A Vs.-Slncada 66 13,235 4 01.1 576.5

1 9.2.11 1-rl.. 38.0 76,231 2,204 2,310.0 3,320.3 996.1 1,328.1 996.1

2 .sr...11-.Plnt.d. 38.0 82,055 2,508 2,466.5 3,574.0 1,072.2 2,501.6

38 .-- a_l(K 44) 4,011 121.5 174.6 174.6

43 t.t.1K 44)-K 79 S. 23,985 726.8 2,044.7 522.3 522.3

59 6 39-, 1OO.5 S. 10,925 603.8 867.9 433.9 433.9

60 K 6ID.5-K 231 lF.lsa 3 18,387 557.2 800.9 400.4 400.4

3 5/ Irl.osls(K 44) 41.6 99,250 2,458 2,977.3 4,279.5 1,283.8 2,711.8 1,283.8

4 0.9.9644)-K 79 35.0 56,811 2,308 1,721.5 2,474.4 742.3 ,7132.1

5 6 79_1 100.5 21.5 SL,004 3,299 1,545.6 2,221,6 666.5 1,555.1

6 100.3-K 131 18.11-)1 30.5 65,94, 2,767 1,995.3 2,968.0 860.4 2,007.6

7 Cor6so.K 25 25.0 46,803 1,872 1,418.3 2,038.6 611.6 6l5.4 6L1.6

6 6 35-6 52.5 19.5 49,303 2,528 1,494.0 2,147.4 6444.2 1,503.2

9 6 52.2-Ur8b.(K 66.5) 14.0 49,488 3,535 1,499.6 2,155.5 646.6 1,506.8

10 Ur.16.2 66.51.Ao2slotl 12.5 72,862 1,829 692.0 995.8 298.7 398.3 296.7

1 9., 8.d,o-Ov.c,., 29.0 47,90Z 1,65i 1,451.6 2,086.5 625.9 834.6 625.9

116 1459oa1 (. 561i-K 5 0s 18,520 261.2 806.4 606.6

ls y 9554. Li,es7K 119) S K 18,415 558.0 802.0 902.0

| 142 L1,,..-Ar.,L. S. 5,620 170.3 244.8 244.8

12 16*go.R 56)_- 85 29.0 69,295 3,006 2,099.8 3,018.2 603.6 1,207.3 7,Z07.3

13 K 85-L. Ln...(K 119) 34.0 65,110 2,457 1,973.0 2,935.9 567.2 1,104.4 1,134.4

14 L 11n.-os.,t 19.3 42,092 2,472 1,275.5 1,733.4 550.0 1,283.3

15 FoKato.-0111.6. 42.5 03,333 1,961 2.525.2 3,629.6 1,088.9 1,451.8 1,088.9

16 V±I1.n_h rdo 30.0 43,532 1,451 1,319.2 1,896.2 758.5 1,137.7

| 10 | 7FndO.:lo.,-SnIlls | 29.7 66,438 2,237 2,013.3 2,893.8 | 68.2 1,157.5 868.2

19 s j .vII.-tc Frlo| 18.9 51,607 2.731 1,542.8 2,247.7 449.5 899.1 399.1

19 | 6, ilo2ro-4. 0,Y. 14.4 36,662 2,546 1.11110 7,596.9 | 19.4 -63.8 639.8

20 | Coa.6o-1.s.nd.-| 19.6 53,804 |2,745 |1,30,4 2,43.5 937.4 1,406.1

21 C... rOolg. 19.4 69,424 3,542 | 2,103 3,023.9 907.7 2,116.7

22 l.odolsa-Cort.ge,, 28.8 64,046 2,274 1,540.8 2,789.6 836.9 1,115.9 836.9

1 23 | 60-PI,chot| 36.2 68,410 1,890 2.073,0 2,979,6 99.9 1,191,9 893.9

24 | 6,*6o.-66181.s 34.9 58,023 1,663 1,78.3 2,527.3 758.2 1,010.9 758.2

l 25 | C681ose P1 .. 29.53 70,199 2,36O 2,127.2 3,057.6 1,223,0 7,834.5

2 Z6 | 05r5s8--El 81.707,- 25.0 49,754 1,990 1,500.7 | ,167.1 630.1 966.9 650.1

27 ! .a1o-8tn .oj 44,0 69,862 1,588 2,117.0 3,042.9 912.9 1,217.2 912.9

28 V11s-8oaslo0C46gZ41j. 24.0 33,260 1,386 1,007.9 1,448.7 579.5 869.2

25 Vottquooo.IP.l| 46.7 84,357 |1h06 2,556.3 3,674.3 1,102.3 1,102.3 1,469.7

30 Polpa Y ls,.to | 41.6 58,879 1,415 1,764.2 2,564.5 769.4 1,023.8 769.4

31 | -81.K 219 34.5 54,392 1 ,577 1,648.2 2,369.1 010.7 - 947.6 710.7

32 6 219.487. 32.3 38,588 1,195 1.169.3 1,680.7 04.2 2 1,176.5

33 Alpo-Main. 39.2 41i,636 1,062 1,761.7 1,893.5 725.4 1,988.1

_8| 978.3 l l | J 89,241.h 14,213.2 19,270.6 25,360.6 22,533.7 7,863.2

,Inc. Contlogsny In t .. c,,t1.Ko2 uld-y.s. to 0l8-yo.r , l | 12 25 39 53

1.o os1,,| 27,046.2 |622,0909.0 5,578.9 9,339.4 10,138.9

06104L Iovosrmmhlr |116,308.0 |14,223.2 |212729.6 3883019.5 31.873.1 | 18,982.1 |

17IK,d 'L -t , -nd .. n.o,.nt o, ph,8s.o1o6. 027 Inlo,.d.. 80* nd2 tn008tt*, OoP5KOIOKIs nd. pUlyscol 6006600nclns 02911

3/ 0001.219n6 eKsbllaaKon{O snk. 18H3 on no. d gtlo.

V .811 t* doIeo by fort. scno,oeb .2 not floncsd by lok

811 b- *p,17 In t ,o 5k-lot.

ts. 197 . 1875 satg. rats 0811 . Col7 3Y t15.6d2Jboo. 1977 obo(1no. roSs WSI1 . ColS 36.88

hus: 8061.0 NI Kson

May 1977

160.1Th110o101 Il, C

PILSEN? IL1.T61 POSER13 011611 - I. 1) C 1. Il I. M I ' 0 0 u A h

@808 12. 058050 8M6 " l1rI.)C1UNIT7 910a 1 9 19 1 01l1ll .1 01017- - ____________________ - ~~~~CQS <2 1, III.>7 -PUTN kPck)%,4 { 1040 COT 900 I VjI 0o j

1T 1*0191 I oS

I t11h..p. 0 089 233 1.23 650 3,250 201) 2.i)01 2I)0 1.1)1 400) 1.0 200 1.010

2 1lat-bddI.-IL. 20 21 201 19 60 L,211 21 SOO i5 31o0 40 S00 25 Sao

§ 008. 1.,... to 1,091. Ise 1.10 1,11o0 10.0)O 350 6,301) 2110 1,-1) 551) 0,400 350 L. 100

4 l41.. T,.&.. Zs 22 33 25 10 I, ? 50 III 2511 11) 350 40 1.1111 30 ISO

5 fo. I .-6, 22 61 211 21 so I 250 10 20 So I0 3 51) 21) 01)1 1 0

6 ApL6.1IY.,.k .. 30 427 5 34 40 1.200 1 0 300 4 130 L . 400 0 0

2 sIt.... Di.t11b.1.1. 30 53 12 to 60 1,2010 t0 300 16 4801 21. 20 a a2

10 08114... . 20 344 51 11 5 1,0 11 42 30 2.1is1)0 90 .3011 I0 1,40

II Hb9,.. 64.4., 00 25 63 125 540 14,400 50 00 50 3,0 100 1.010 20 1.200

10 b?..6 L-o.4.. 30 29 52 1 5 315 20 0 ZSoi 1,11 '0 3,10 14 9.20 0s 0o

22 0,4..t. T-k 0s 55 120 is is0 31250 20 4,000 20 3,o0 30 Soo0 20 1,000

IS sti.,T.-h,l100.. s0 82 is 14 30 2,400 25 100( 10 30 II 1.o 5 200 00

19 11-... 50 IS S I 20 40 21020 10 400 to b( 0 1 .400 0 0

SI SoI.a.d ..... 20 64 0G I2 n50 I1,000I 20 4200 10 200( 20 4.00)2 ,0

is 806..?yI..dSoIlr* 0 35 95 12S 50 1600 10 200m so 1,00 (10 to ,X 0 0.2

23 20..1'6l,.& I-20 63 55 09 60 1,200 20 100 10 210)o 40. 200 0 0

24 3..- y6.- l., so sO1 0a 09 60 6700 20 200W 0a 1 0 IS0 2,00 20 200o

to 5.6n.I.o t.. 10 54 as 21 30 50m 0 00 to 100 Is too2 0 0

26, r~is.1.. s0 I3 02 0a 20 2,00 a 40 0 0 5 400 0 0

§ 2 frl.Iyc-.3...t 00 24 39 60 Oa 250m 0 10 50 0,o 50 1.00 0 0

20 0....., . 61.A.6 20 64 4 2 I so 250 0o 20 10 200 10 100 0 0

29 IL.bb.. Cn,.-,. 0.It-. 10 39 I 0 20 5,00 la 600 4 600 05 3.00 0 0

50 kf*..l V:. 00 1..t 20 15 01 IS 20 400 0: 0 0 200 40 00 0 0

341 S-1 VI 1 .1.1-42 I 0 255 1 2 ,00fi 20 1,0 0 50 10 zoo11 20 2.010

is 10IItI8W 2oI S 0 31,0 3020 a 0 10 0 10 too 0 0N 3 O18*i0.4*- 20 23 2 a2 40 200 1 60 0 1, 12 60 2 60

2? F..o,-1 C).-., 2o 24 Is 00 20 250 10 20o 0 2 10 too 0 0 -

21 5- ? ,& I 412 I 2526 101,0 1.14 3,1 222 2too 1,02 504507 1.5

J, X*... ***5 90 C 8* .I.. *'1111p0I a 0 0DO4 6w4 bo 0

IIP..0 i 0 is2040 01 o47o7

TABLE 14

COLOMB IA

SEVENTH HIGHWAY PROJECT

Estimated Schedule of Disbursements(US$ million)

IBRID Fiscal Year Disbursed in CumulativeQuarter Disbursements

1978

December 31, 1977 4.0 4.0 4March 31, 1978 5.0 9.0 10June 30, 1978 6.0 15.0 17

1979

September, 1978 6.0 21.0 23December, 1978 7.0 28.0 31Marchl, 1979 7.0 35.0 39June, 1979 8.0 43.0 48

1980

September, 1979 8.0 51.0 57December, 1979 7.0 58.0 64March, 1980 6.0 64.0 71June, 1980 5.0 69.0 77

1981

September, 1980 5.0 74.0 82Deccnmber, 1980 4.0 78.0 87Marni, 1981 3.0 81.0 90JuLte, L981 3.0 84.0 93

1982

Septemiber, 1981 2.0 86.0 96Decemxber, 1981 2.0 88.0 98Marlh, 1.982 1.0 89.0 99Jutie, 1982 1.0 90.0 100

Sou.::e: Mission

Mar;rh 1977

rA8LE 15SEVENT HIGFQ61Y PROJECT

Xt tl. of Road 8e6.61141ation P er..

LENGTH ROADrS TBAFC I R TesCfRT E C 0 N 0 M I C C 0 S T SCoodletie Gro-th LAad.lid. R0h.b. P-riodi.

R O A D L O T S RS RS RS Tot-l % A Cofff. R te R_ovl mtc..43Z 3-61 >6S AS GB Light Bu. Truk Per 6./yr Per k. P., k

__________ _ 6lo.ro5 .kil.t Vehiols.- hdy P... In Doo..b-r 1975 0005. Col$

I H d.lli.-V-s.slIe 38.0 25.9 6.6 5.5 11.0 19.0 8.0 4,890 38 11 51 1.12 a 42.4 2,204.0 551.0

2 v.r.alle..-P-t.d 38.0 11.3 17.2 9.5 17.8 20.2 - 2.030 28 11 61 i1.06 8 28.9 2,508.0 316.2

3 P-rsir-6s0i 41.6 34.9 6.7 - - 38.9 2.7 4,260 46 11 43 -1.0 a 20.7 2,458.0 368.7

4 Aslo-Y79 35.0 17.7 14.6 2.7 10.3 24.7 - 1,850 30 11 59 1 .06 B 48.6 2,308.0 346.2

5 K79-K100.5 21.5 8.9 12.4 0.2 7.0 - 14.5 1,770 29 12 59 1.10 8 90.7 3,299.0 494.9

6 K100.5-FUl.s 30.5 11.2 14.8 4.5 11.0 19.5 - 2,030 33 9 58 I 1.06 8 63.9 2,762.0 414.3

7 C-CL.O-1125 25.0 24.1 0.5 - 3.5 5.5 16.0 3,280 42 11 47 1.12 a - 1,872.0 280.8

B K33-K52.5 19.5 19.5 - - - 3.0 16.5 3,120 40 13 47 1.16 8 - 2,528.0 379.2

9 K52.5-L. U,ib. 14.0 14.0 _ _ _ - 14.0 3,670 38 14 48 1.16 8 3, 535.0 530.3

10 Lt Urib.-And.luc.i 12.5 12.5 - - - 6.5 6.5 5,160 35 14 51 1.16 8 - 1,029.0 548.7

II S10 Pddr-G .... ri 29 0 29 0 - - - 20.8 8.2 6,510 48 14 38 1.16 0 - 1,651.0 495.3

12 Ib.g,I-KS5 29.0 6.6 14.5 7 9 - 29.0 - 2,330 26 13 61 1.08 S 84.5 3,006.0 478.5

13 K85-L. Li... 34.0 8.2 6.3 19.5 - 54.0 - 2,340 23 15 62 1.08 6 72.1 2,457.0 387.0

14 L. Li-e.-A-riei 19.3 1.0 1.4 13 9 10.9 8.4 2,340 23 15 62 1 10 a 69 9 2,472.0 370.8

15 F.c.tsOil.-Vill-ta 42.5 2 2 3.2 37.1 16.5 19.4 6.6 2,250 51 14 35 I 1.08 0 14.4 1,961.0 294.2

16 Vill..-H-ond. 30.0 4.5 - 25.5 20.3 5.5 4.2 1,590 51 12 37 , 1.06 8 36.7 1,451.0 217.7

17 Fvndaeion-Sovilla 29.7 29.7 _ - 12.8 16.9 - 1,670 47 14 39 1.10 12 - 2,237.0 335.5

18 Sevill:-io Frio 18.9 10.9 - - 1.3 17.6 _ 1,330 42 15 43 1.10 12 - 2,731.0 490.7

19 Rio . ft-L. Y. 14.4 14.4 - _ 14.4 _ 1,590 42 15 43 1.10 12 - 2,546.0 381.9

20 Corr-t.-Casve-de 19.6 17.6 2.0 -_ 19.6 1,280 32 21 47 1.16 8 - 2,745.0 411.8

Zl Co.-vOnde-V-odol.a 19.4 16.8 2.6 - - - 19.4 1,780 30 18 52 1.16 8 , - 3,542.0 531.3

22 V-rdolsga.-C--g.Oe 28.8 28.8 _ 8.6 20.2 - - 3;860 43 22 35 1.12 8 - 2,224.0 333.6

23 Oib.-Pi-cho-e 36.2 22.2 9.1 4.9 10.6 19.9 5.7 1,570 39 12 49 1.08 8 6.9 1,890.0 283.5

24 Pi-Cho--Chifl.O 34.9 22 0 7.1 5.8 16.9 18.0 - 1,550 42 11 47 1.06 8 14.0 1,663.0 249.5

25 Chifl-.-Pijdec--et 29.5 10.5 0.4 10.6 - 27.9 1.6 1,500 38 12 50 1.08 8 8.5 2,380.0 357.0

26 Bu.r-n-n-g.-E1 Playo- 25.0 12.4 6.6 6.0 12.3 12.7 - 1,650 43 13 44 1.06 8 58.0 1,990.0 298.5

27 Pmploo-o-L. D-o-u., 44 0 4.7 25.5 13.8 - - 44.0 1,440 55 13 32 1.12 8 11.1 1,588.0 238.2

12 VIlla Rosaeic-ZClia 24.0 19.4 4.3 0.3 13.7 10.3 - 4,790 76 6 18 1.10 8 5.2 1,386.0 346.5

23 vent.qu.a.d.-P.lp. 46.7 33.1 8.6 5.0 19.8 18.0 8.9 3,350 40 16 44 1.10 8 10.5 1,806.0 270.9

3) Pip.-Belo...ito 41.6 34.6 7.0 . 15.5 26.1 - 3,190 45 14 41 1.08 8 11.8 1,415.0 212.3

31 C--tlla--K219 34.5 54.5 - - 25.0 9.5 _ 1,500 39 13 48 1.06 8 - 1,577.0 236.6

32 K21

9-Aip. 32.3 28.8 3.5 _ 25.8 6.5 _ 1,411 38 14 48 1.04 8 1,195.0 179.3

33 Aip.-N.ivo 39.2 37.2 2.0 - 37.2 2.0 - 1,729 49 12 39 J 1.04 8 - 1,062.0 159,3

R8: -ah.bilit.tion of the suef-co c-urse: 5 c- of sphalt verage

RSAB: r-habilittio of t16 surface cor... plus P. phlt b ... 10 t asphalt average

R18G: -ahobilit.ti.o of the sorfac- coo-a plc. gr.ul-r bess

1/ TroffiC In fir.t y.-r of ao_lys.i: assumed to be 1978.

'osrce: MOOT ard Miosioc

March 1977

TABLE 16

CQLOMBIA

SEVENTH HIGHWAY PROJECT

Economic Vehicle Operating Costs(on a paved "as new" road in Dec. 1975 Col$ per km)

Terrain Vehicle I' Bus 2/ Truck

Flat 4/ 3.22 3.83 5.07

Hilly 5/ 3.60 4.43 6.02

Mountainous 6/ 4.58 6.34 8.66

1/ Simple average of small car, large car, taxi, jeep and pick-up van.2/ Large inter-municipal bus.3/ Simple average of small, medium and large truck.4/ Gradients up to 2.9%.5/ Gradients between 3% and 5.9%._| Gradients over 6%.

Source: MOPT, based on INGEROUTE/MOP, Vehicle Operating Costs, January 1973

October 1976

COLOHBIA

SEVIENTII IIICHaIY PROJItCT

Economic Evaluation of Road Reb.bilitStton Progra

Risk Analysis of Rarte Of k-tur,l

Best EstImte X devarture rom best estimates used for risk as-lysts Probability Diotribution 2. ProbabilityEconomic .. TIraffic Road Cond. Coeff. A new" veb. optg. costs of the rate of return of rate of return

Rate of ieturn 1/ mean Std.Dev. Mean 2/ Std.Dev. en Std.Dev. Mean Sn._td.D.

I Medellin - Versalles 67.5 0 5S -5% 5% 0 5% 49.2 20.3 0

2 Versatles - Pintada 21.9 0 52 -1X 5X 0 5% 20.5 10.5 16

3 Peretra - Asia 44.9 0 52 -5X 5% 0 52 31.3 15.2 84 Asia - K 79 32.2 0 52 0 51 52. 33.1 7.6 05 K79 -K 100.5 18.0 0 52 *52 52 0 52 25.3 6.6 0

6 K 100.5 - Felts. 19.1 0 52. 4 52. 0 52 26.8 8.6 0

7 Cartago - K 25 49.8 0 5X -22 51 0 52 45.4 15.3 08 K 33 -K 52.5 45.5 0 51 -52 51 0 51 34.8 12.3 0!9 K 52.5 - La Urlibe 39.3 0 57 -52 52. 0 51 29.7 10.9 819 La Uribe - Andalucia 92.2 0 57 -62. 57 0 52 65.3 24.5 011 San Pedro - Guacarl 117.0 0 52 -9X 5X 0 51 63.1 30.0 4

12 Ibague - K 85 24.6 0 52 *7. 52. 0 52 38.3 9.1 0I; K 85 - IA Line. 32.9 0 52 +72 51 0 52 50.8 11.9 014 La Line& - Armenis 42.2 O 52 -27 52 0 52 38.3 13.6 0

S Vcatativa - Villeta 37.9 0 51 +12 52 0 52 42.1 14.1 0116 Villets . Hioda 31.8 0 52 +t1. 52 0 52 35.7 13.0 0

17 FundacLon - Seville 23.5 0 52 +62 52 0 52 34.1 8.0 01i S.vIla - RIo Frto 14.4 0 52. .6 52 0 52 22.7 6.3O19 Rio Frto -La Ye 19.8 0 52 +62 52 0 5X 29.4 7.2 0

23 Carreto Cassverde 16.8 0 52. 0 52 0 52 17.7 6.4 1621 Casaverde - Verdolaga 19.2 0 52 0 52 0 52 19.8 6.8 1222 Verdolaga _ Cartagena 48.3 0 52 +42 52 0 51 61.7 15.1 0

23 Olba - Plnchote 22.3 0 51 *4X 52 0 52 30.7 9.3 02S Ptinchote _ Chiflas 21.5 0 52 +6 52. 0 52 34.4 9.8 025 Chitlas Piedecuests 18.8 0 52 +42 52 0 52 26.3 8.4 0

26 Bucaramanga - EL Plsyon 21.1 0 52. 62. 52. 0 52 32.8 8.9 0

127 Pamplona - La Donjuana 33.2 0 52 0 5. 0 52 34.2 10.5 0

|26 Villa Rosarto - Zulta 70.0 0 52 -21 52 0 52 63.4 24.2 0

29 Ventaquemada Paipa 50.5 0 52 -21 51 0 5X 45.6 16.9 030 pidps - Belencito 48.6 0 52 0 52 0 52 50.7 18.1 0

31 CattIla - K 219 18.7 0 52 +62 52 0 52 31.0 9.3 032 K 219 - Alpe 19.8 0 5% .42 52. 0 51 29.7 11.1 833 Aipe _ tlva 26.0 0 52 +42 52 0 5t 37.9 13.3 0

1/ Bsed on miwstonls beat catimates of cost and benefits.

21 Dittersnce botween mission's beat eatt"t. of road conditton coafficIent and HOPT's best *sttmata.

Source: Mlsason

March 1977

COtIl8IA

AtNTINni Htlw,Y 2PbutmC

H11u6y _blat.oance Propraa

With 0nS Wt2jnout trao and Us.r Coats of Ilaorh(D.c. 1975 US$ It...n I USS . Col . 31

.korlc jllOt*OMIO CoIL.

Without fro.ga I I Wi ll, Itorra

landalid Unp ..vd av-d land.ltd. UI-panaedlt aL 2/ Total 3/ C.1itld ld.aIftove1 I/ -rth ora..I ST AC Total goov-1 t.rth G.a-I2 ST 2 5t i Ac ith_ b. 4/ SRhab. 4/

1978 3.27 3.93 6.00 9.27 8.29 30.76 2.62 6.76 9.0S 15. 7 81.10 13.52 47.65 111.05 I6. 8 82.29

1979 3.27 4.15 6.33 9.71 8.29 31.75 2.62 6.98 9.59 16.24 40.77 7.96 43.39 67.92 11.64 36.17

1980 3.?2 4.36 6.65 10.36 8.84 3L.48 2.62 7.30 It7.42 12.54 28.78 13.52 54.40 70.64 20.92 37.16

1981 3.27 4.41 8.76 11.13 9.93 35.56 2.62 7.52 l6.46 7.30 10.25 17.11 51.01 51.96 15.45 18.40

1982 3.27 4.69 1.98 i1.89 9.60 36.44 2.62 7.85 11.45 13.90 14.17 3.92 39.74 412.01 3.30 3.57

1913 3.27 4.91 34.15 12.98 11.89 67.20 2.62 8.18 15.70 9.16 3.71 24.63 60.29 54.84 -6.91 -12.36

1984 3.27 5.13 8.64 14.51 11.67 43.42 2.62 8.50 16.35 15.70 8.28 6.98 50.15 42.63 6.73 -0.79

1985 3.27 5.35 8.51 14.51 12.65 44.29 2.62 8.83 16.57 11.99 4.2S 4.80 50.81 37.07 6.52 .7.22

1986 3.27 5.67 9.05 16.25 123.5 47.78 2.62 9.27 19.62 14.28 3.71 4.14 49.93 39.36 2.15 -8.42

1987 3.27 5.89 9.49 17.13 16.51 50.29 2.62 9.70 16.13 20.06 1.74 30.08 78.59 60.27 28.30 9.98

6CoN60IC US03 COSTS

1978 80.66 114.12 185.19 536.28 916.25 76.30 112.16 184.10 180.18 536.28 908.84 904.92 7.41 11.33

1979 87.09 123.28 212.22 597.32 1,019.91 82.40 121.10 210.37 175.05 S72.14 986.01 950.69 33.90 69.22

1980 94.18 133.20 244.71 666.10 1,138.19 88.94 130.80 239.91 177.89 628.28 1,087.93 1,025.91 50.26 112.28

1991 102.13 147.91 282.42 744.03 1,276.49 96.14 141.26 274.57 187.25 685.61 1,197.58 1,110.16 78.91 166.33

1982 112.71 164.81 326.13 832.32 1,435.97 103.77 152.60 315.88 200.56 729.54 1,301.79 1,186.47 134.18 249.50

1983 118.37 192.52 316.92 932.50 1,620.61 113.36 164.70 354.69 219.64 806.71 1,439.45 1,104.40 181.16 316.21

1984 127.86 181.16 435.89 1,046.18 1,791.09 120.99 177.89 404.94 238.82 846.39 1,550.20 1,384.08 240.89 407.01

1985 138.10 195.66 S04.45 1,175.46 2,013.67 130.69 192.17 464.12 260.18 918.76 1,705.74 1,501.80 307.93 521.87

1986 149.11 211.24 5864.13 1,322.82 2,267.30 141.16 207.54 481.34 286.02 1,014.79 1,844.83 1,649.50 422.48 617.80

1967 161.10 228.14 676.61 1,490.90 2,356.81 152.49 224.10 545.22 314.57 1,122.26 2,044.08 3,813.43 512.73 743.38

I/ 6aray wrka Nor l1n-dlidt rs.eol and prtttlon of ro.d4ay not Included In int.n..r .ctlitta9 O0 *ach Lyp. of rood

2/ A.n. limited rhabillgallon 1t done In the analy1t. perlod

2 Amlont r.habiIltatlon ot rood. t on. Oan Ida.l1, required gsI.e their condition .nd d.tarlortl4on

4/ A.Phat concramt roado or. ov.rl.yd, lutrit. trasrd rod. a.h rhbilitated

3T? S.rfaco trestOd roads

AC. *.phlt oncr.t roated.

-.- n. Mission

AprIl 1917

TABLE 19

COLOMBIA

SEVENTH HIGHWAY PROJECT

Highway Maintenance Program

Summary of Economic Assessment

Net PresentEconomic rate Value . Benefit/Costof return (US$ Million Ratio

Program implemented withlimited rehabilitation 292.30 920.75 13.71

Program implemented withrehabilitations whenideally needed 117.76 1,511.43 11.09

Source: MissionApril 1977

TABLE 20

COLOMBIA

SEVENTH HIGHWAY PROJECT

nstimated Yearly Maintenance Expenditures

(Dec. 1976 US$ million)

Without WithProgram Program 1/

Limited IdealRehabilitation Rehabilitation

1978 41.91 64.92 154.03

1979 43.26 59.12 92.54

1980 45.62 74.12 96.25

1981 48.45 69.50 73.52

Average 1978-1981 44.81 66.92 104.09

1982 49.65 54.15 54.51

1983 91.56 82.15 74.72

1984 59.16 68.33 58.08

1985 60.35 69.23 69.23

1986 65.10 68.03 53.63

1987 60.52 107.08 82.12

1/ Including overlaying of asphalt concrete roads and rehabilitation ofsurface treated roads not normally part of maintenance budgets.

Source: Mission

April 1977

ANNEX IPage 1

COLOMBIA

APPRAISAL OF A SEVENTH HIGHWAY PROJECT

Terms of Reference for a Vehicle Weight Control Study

1. Purpose of the Study

Origin-destination studies for passengers and freight carried outby consultants and the Planning Office of the Ministry of Public Works andTransport show that a significant percentage of trucks using the nationalhighways exceed the legal weight limits for single or tandem axle loadingsas enacted by Resolution 1051 of February 8, 1971, authorized under Decree1344 of 1970. This is causing a rapid deterioration of the roads, resultingin a poor level of service and additional costs for special maintenance ofthe highways and for their reconstruction, which could be avoided.

For these reasons, the Ministry of Public Works and Transportproposes to undertake a study to review the legislation and to determine themost suitable methods and procedures for setting up a system to enforce legalrequirements, particularly for axle loads of trucks.

The aim of the Ministry of Public Works and Transport is to offerbetter service on the roads for which it is responsible and to reduce thecost of maintenance and reconstruction.

2. Scope of the Study

To achieve the purposes outlined above, the consultants shall:

(a) review existing legislation and regulations on axle loadsapplicable to the national highways;

(b) review the history of previous attempts to apply a weightcontrol system on the national highways;

(c) review the legislation and regulations on axle loads in theAndean Group Countries, Brazil and the United States of America;

(d) review the effect of technological developments in themanufacture of heavy vehicles on axle loads, particularly inthe context of the Andean Group Countries;

(e) based on the above, recommend, if necessary, changes to thecurrent legislation and regulations on weight control;

(f) assess the effect of the recommendations provided in (e) onthe current design standards for highways and structures andon construction and maintenance costs of the network;

ANNEX 1Page 2

(g) review the composition of the truck fleet of Colombia and itsadequacy to best serve the country's need; review current importregulations and import licensing arrangements to guarantee thetechnical soundness of the vehicles, and recommend any necessarychanges to ensure that the fleet is adequate to the country'sneed;

(h) analyze various axle load control systems and recommend thesystem or systems best adapted to enforcing the legal require-ments proposed;

(i) investigate the system currently applied for computing, imposingand collecting fines and, if necessary, recommend any changesneeded to minimize fine evasion;

(j) design a system for the operation of weight controls and estab-lish the procedures and fines that should be applicable to allcases which may arise;

(k) establish the type and characteristics of the installationsnecessary to operate the proposed system, taking into accountthe need to avoid long lines of trucks that would congest roadsand slow down the circulation of other vehicles;

(1) given the number and location of the weight control stations asshall be determined by the Planning Office of the Ministry ofPublic Works and Transport, determine the cost of each one of theproposed systems, distinguishing between capital, maintenance andoperating costs. The consultants shall show the foreign component,if any, and the local costs for both equipment and civil works.Operating costs are understood to include personnel costs and thecosts of any necessary materials. A schedule of capital expendi-tures shall also be drawn up for each proposed system, specifyingdates and lead times for the procurement, installation and startupof the stations, allowing for the fact that startup should bemore or less simultaneous at all selected locations;

(m) prepare an economic analysis of the proposed control systemincluding the economic rate of return, net present value andthe benefit cost ratio for each system, making due allowancefor savings accruing to the Ministry of Public Works andTransport on account of the maintenance and rehabilitationof the national highways and those accruing to users due tothe higher level of service offered;

(n) review and recommend possible means to ensure the cooperationof the trucking industry in the program;

ANNEX 1Page 3

(o) prepare a typical design for the civil works of the stationsand the specifications for the equipment proposed to be used;

(p) prepare bid documents for tenders to procure the installationof the equipment and the construction of civil works at eachsite.

3. Duration

The study will be executed over a period of 15 months and should becarried out in three phases as follows:

(a) Phase I: background and recommendations on weight controllimits; activities (a) to (f) inclusive as described in 2above.

Duration - two months

(b) Phase II: definition of the weight control system and descriptionof its operation; activities (g) to (n) as described in 2 above.

Duration - four months

(c) Phase III: preparation of bid documents for the procurement ofthe equipment and civil works; activities (o) and (p) above.

Duration - six months

4. Reports

At the end of each phase, the consultants shall present a reportin draft (five copies). Any comments by the Ministry shall be incorporatedby the consultants and a final report shall be presented to the Ministry(10 copies).

5. Work Orders

The Planning Office of the Ministry of Public Works and Transportshall communicate in writing to the consultant the dates of commencement ofeach phase. Once the first phase has been completed and the draft reportsubmitted, the Ministry will make comments as necessary and decide whetheror not to continue the study to the subsequent phases, advising the consultantsof such decision in writing.

June 1977

ANNEX 2Page 1

COLOMBIA

APPRAISAL OF A SEVENTH HIGHWAY PROJECT

Road Rehabilitation Program

General

1. The Road Rehabilitation Program covers 33 road lots, totalling about978 km, located throughout the country along the following roads:

(a) western trunk road, which follows approximately the Cauca valley;

(b) the eastern trunk road which follows approximately the Magdalenavalley;

(c) the two main transversal roads between the western and easterntrunk roads in the central region; and

(d) two important branch roads from the eastern trunk road:(i) to Belencito, serving the expanding coal mining industry;and (ii) to the Venezuelan Border near Cucuta.

Traffic Characteristics

2. Traffic along the roads can be described as follows:

(a) The western trunk road carries the bulk of goods between theAtlantic and Pacific ports and the important industrial,commercial and agricultural centers of Medellin and Cali.Presently, until completion of the paving of the eastern trunkroad, many goods transported by road between Bogota and theAtlantic ports also go by this road.

(b) Paving of the eastern trunk road is due for completion by 1979on about 250 km between Fundacion and Limites (near Malpaso).Once paved, the road will carry all the goods between theimportant commercial centers of Bogota, Tunja and Bucaramangaand the Atlantic Ports.

(c) The two paved transversal roads connect with the western trunkroad at Cerritos and the eastern trunk road, one at Bogota viaManizales and Honda, and the other at Espinal via Armenia andIbague. These roads carry all road transported goods betweenthe main centers in the central provinces and between Bogotaand the Pacific and, presently, the Atlantic Ports.

ANNEX 2Page 2

(d) The road from Tunia to Belencito carries considerable trafficbetween the expanding coal mining industry in the area and themain centers. The road from Bucaramanga to Cucuta and VillaRosario is the only road link between Colombia and Venezuelaand is becoming an important import/export route.

Description of the Roads

3. A brief description of each road follows and a breakdown of costsand economic rate of return for each lot is given in the table.

(a) Medellin-Pintada Road (76.0 km)

Lot 1: Medellin-Versalles (38.0 km)Lot 2: Versalles-Pintada (38.0 km)

This road is located on the western trunk road in the department ofAntioquia; over 70% runs through mountainous terrain as the roadgenerally descends from Medellin (1,500 m.a.s.l.) 1/ to cross RioCauca at Pintada. Some stretches go through unstable terrain,especially along the ridges, and landslips above and below theroadway are common in the wet seasons. The road was paved in 1952.Since then, only one resealing of 51 km was carried out in 1968 andthe pavement is now in poor condition. The pavement structure isgenerally sound but requires considerable reinforcement for thepresent traffic of 1,800 to 4,500 vpd which is made up of over60-70% of heavy vehicles. Stabilization works (estimated cost:US$750,000) for critical sections on both lots are to be carriedout under two contracts before the main rehabilitation workscommence. Rehabilitation includes widening the asphalt pavingfrom the present 6.20 m average to 7.00 m.

(b) Pereira-Cerritos-Pintada Road (128.6 km)

Lot 3: Pereira-Asia (41.6 km)Lot 4: Asia- Km 79 (35.0 km)Lot 5: Km 79-Km 100.5 (21.5 km)Lot 6: Km 100.5-Felisa (30.5 km)

Cerritos-Felisa is located on the western trunk road and the 16 kmfrom Cerritos to Pereira is on the common stretch of the two trans-versal roads to the eastern trunk road. The roads are in thedepartments of Risaralda and Caldas. The road winds up and downon the left side of Rio Cauca crossing it at Virginia some 12 kmbefore Cerritos. From Cerritos, the road rises to Pereira at 1,400m.a.s.l. Each lot goes through unstable mountainous terrain andfour contracts for stabilization works (estimated cost: US$2.2million) are to be carried out before the main rehabilitationworks. The road was completely paved by 1957. Since then, only15 ktm were resealed in 1970 and the rehabilitation, which includeswidening the asphalt paving from 6.60 m average to 7.00 m, would

1/ meters above sea level

ANNEX 2Page 3

require reconstruction of about 17 km of pavement. Considerablepavei-'t strengthening is required for the present traffic of1,600 to 4,000 vpd, which is made up of over 55-70% heavy vehicles.

(c) Cartago-Guacari Road (100.0 km)

Lot 7: Cartago-Km 25 (25.0 km)Lot 8: Km 33-Km 52.5 (19.5 km)Lot 9: Km 52.5-Uribe (14.0 km)Lot 10: Uribe-Andalucia (12.5 km)Lot 11: San Pedro-Guacari (29 km)

This road is located on the western trunk road to the right of RioCauca, in the department of Valle del Cauca, and generally runsover flat terrain. Traffic varies from 3,000 to 6,000 vpd (50-60%heavy vehicles) increasing toward Cali. Heavy traffic, since theroad was paved in 1953, has severely damaged the pavement structure,over half of which now requires reconstruction. This situationclearly reflects the inadequate maintenance policies in the past;only 28 km were overlayed in 1972-1974. Rehabilitation includeswidening the asphalt paving from the present 6.40 m average to7.20 m. Shoulders of over 1.50 m are generally possible withoutwidening the roadway.

(d) Ibague-Armenia Road (82.3 km)

Lot 12: Ibague-Km 85 (29.0 km)Lot 13: Km 85-La Linea (34.0 km)Lot 14: La Linea-Armenia (19.3 km)

This road is located on the Cerritos-Espinal transversal road, inthe departments of Tolima and Quindia, and passes over the centralrange at 3,280 m.a.s.l., traversing some of the most difficultterrain in the country. The alignment is winding and often tortuous,and the gradient reaches a maximum of 10%. Each lot has numerousstretches of unstable terrain and the road is often closed in thewet seasons due to landslides and washouts. Stabilization worksestimated at US$1.9 million will be carried out on the most criticalsections before rehabilitation of the roadway. The road was pavedby 1953 and, despite only 16 km having received overlays in 1970-1972, only about 8 km require reconstruction. However, considerablestrengthening is required for the present traffic of about 2,200 vpdwhich is made up of 75% heavy vehicles. The asphalt paving wouldbe widened to 7.00 m.

(e) Bogota-Honda Road (7,215 km)

Lot 15: Facatativa-Villeta (37.9 km)Lot 16: Villeta-Honda (31.8 km)

This road is on the Cerritos-Bogota transverse road, located in theDepartment of Cundinamarca, and commences some 40 km from Bogota at

ANNEX 2Page 4

2,600 m.a.s.l. The road generally descends through the mountainousterrain to Honda on Rio Magdalena with gradients often above 6%.The road was paved to 7.00 m around 1957 and received resealingof only [0 km in 1972. Rehabilitation would include stabilizationof several zones and improvement in drainage. The pavement needsconsiderable strengthening and, for about 11 km, reconstruction;no widening is required. Traffic varies from 1,500 to 2,000 vpd(50% heavy vehicles).

(f) Fundacion-La Ye (63.0 km)

Lot 17: Fundacion-Sevilla (29.7 km)Lot 18. Sevilla-Rio Frio (18.9 km)Lot 19: Rio Frio-La Ye (14.4 km)

This road is located on the eastern trunk road in the Department ofMagdalena and runs on flat terrain for its entire length. The roadwas paved in 1952 to widths between 5.80 and 6.60 m with narrowshoulders. Present traffic averages about 1,500 vpd with about 55%heavy vehicles. Traffic will undoubtedly increase considerably innumber and size when paving of the eastern trunk road is completed.Rehabilitation would widen the asphalt paving to 7.00 m and provideadequate shoulders. Negligible resealing has been carried outsince construction, and rehabilitaiton would include considerablestrengthening of the pavement.

(g) Carreto-Cartagena Road (68.0 km)

Lot 20: Carreto-Casaverde (19.6 km)Lot 21: Casaverde-Verdolaga (19.6 km)Lot 22: Verdolaga-Cartegena (28.8 km)

This road is located on the western trunk road in the department ofBolivar; more than 80% runs over flat terrain often on low strengthsoils. The road was paved before 1954 and was resealed in 1968.Its present condition is poor, and the pavement needs considerablestrengthening to carry the 1,200-3,500 vpd (55% to 70% heavy vehicles)on the weak soils. The pavement on Lots 20 and 21 requires completereconstruction. Rehabilitation includes widening to 7.00 m from thepresent 5.60 m to 6.70 m and some widening of shoulders.

(h) Qiba-fiedecuesta Road (100.6 km)

Lot 23: Oiba-Pinchota (36.2 km)Lot 24: Pinchota-Chiflas (34.9 km)Lot 25: Chiflas-Piedecuesta (29.5 km)

This road is located in the department of Santander on the easterntrunk road between Tunja and Bucaramanga; the alignment traversesall types of terrain with gradients reaching 7%. Most of the roadwas paved around 1953 but the final 26 km was completed in 1961 and

ANNEX 2Page 5

1962; 60 km of the original road received an asphalt concreteoverlay in 1966 atun was widened from the original 6.30 m to 7.20 min several stretches. The paving is deteriorating fast under thepresent 1,500 vpd, of which about 60% are heavy vehicles. Rehabi-litation includes considerable drainage works, strengthening of theasphalt paving with widening of narrow stretches to 7.00 m.

(i) Bucaramanga-El Playon Road (25.0 km)

Lot 26: Bucaramanga-El Playon (25.0 km)

This road is located in the department of Santander on the easterntrunk road north of Bucaramanga. The terrain is mainly undulatingand gradients are generally less than 4%. Paving of the road(6.80 m to 7.20 m) was carried out in 1966; there has not been anysubsequent resealing. The paving is deteriorating fast under thepresent 1,500 vpd, of which nearly 60% are heavy vehicles. Rehabi-litation includes widening to 7.20 m, protecting the road from rivererosion and drainage improvements.

(j) Pamplona-La Donjuana Road (44.0 km)

Lot 27: Pamplona-La Donjuana (44.0 km)

This road is located between Bucaramanga and the Venezuelan borderin the department of North Santander. The road traverses mainlyrolling terrain but nearer Pamplona gradients go above 6%. The roadwas paved (7,00 m wide) in 1954 and 34 km was resealed between 1970and 1972. However, the traffic, which is presently over 1,300 vpd(45% heavy vehicles), has caused considerable damage and the pavementnow requires complete reconstruction.

(k) Villa Rosario-Cucuta-Zulia Road (24.0 km)

Lot 28: Villa Rosario-Zulia (24.0 km)

This lot is composed of two sections: 10.2 km between Cucuta andZulia (7.00 m wide) and 6.9 km of double carriageway (each 7.00 mwide) between Cucuta and Villa Rosario on the Venezuelan border.The road is located in the department of North Santander, 80% beingin flat terrain. The average daily traffic is about 2,400 vpd (40%heavy) on the Zulia-Cucuta section and about 5,600 vpd (10% heavy)on each carriageway of the Cucuta-Villa Rosario section. Bothsections were paved between 1962 and 1964 and have since receivedlimited resealing. Rehabilitation would include strengthening theexisting pavement and improving drainage.

(1) Venteguemada-Belencito Road (88.3 km)

Lot 29: Ventequemada-Paipa (46.7 km)Lot 30: Paipa-Belencito (41.6 km)

ANNEX 2Page 6

This road is located in the department of Boyaca on the easterntrunk road between Ventequemada and Tunja and on the branch roadfrom Tunja to Belencito. The alignment passes through all types ofterrain but nearly 80% is of low gradients. The Ventequemada-Tunjasection was paved in 1965 and the rest between 1967 and 1970; about79 km were resealed between 1969 and 1973. The traffic is presentlyabout 3,000 vpd (55%-60% heavy vehicles) and rehabilitation wouldmainly include strengthening of the existing pavement. The roadrequires limited widening to the 7.00 m design width. Shouldersare generally between 1.00 m and 1.50 m.

(m) Castilla-Neiva Road (106.0 km)

Lot 31: Castilla-Km 219 (34.5 km)Lot 32: Km 219-Aipe (32.3 km)Lot 33: Aipe-Neiva (39.2 km)

This road is located on the eastern trunk road in the departments ofTolima and Huila; about 95% runs over flat or slightly rollingterrain. The present traffic varies between 1,300 and 1,600 vpd(50%-60% heavy vehicles). The road was paved in 1966 to 7.00 m widebut only narrow shoulders were provided. In 1970 resealing was doneon 14 km and the road is now deteriorating rapidly. Rehabilitationwould include strengthening the existing pavement and provision ofshoulders to improve safety.

June 1977

ANNEX 2

Pa7e 1

COLOMBIA

SEVENTH HIGHWAY PROJECT

R*babilitation Pro"rIl - read of It Costs(axcluding stabiliztion vorks; June177 US$)j/

BASE COST US$ ~ ECONOMICLOT DESCRIPTION LENGTH t PAVING S EARTH E DRAINAGE SOTHER RATE OF

D E S C R I P T I O N 1 D R A I N A G E T O T A L ( M i l l i o n ) U S $ / K M R E T U R N

1 Medellin-Versalles 38.0 79 9 7 5 2.77 72,890 67.5

2 Verx.lles-Pintad. 38.0 72 12 12 4 2.98 78,420 21.9

3 Pereira-Asia (K44) 41.6 81 12 4 3 3.57 85,820 4-4.9

4 Asia (K44)-K79 35.0 52 18 26 4 2.06 58,860 32.2

5 K79-X100.5 21.5 60 li 25 4 1.85 86,050 18.0

6 K100.5-Feli.s 30.5 59 17 20 4 2.39 73,360 19.1

7 Cartago-K25 25.0 89 2 5 4 1.70 68,000 49.8

8 K33-K52.5 19.5 93 3 1 3 1.79 91,790 45.5

9 K52.5-1 Uribe (K66.5) 14.0 86 10 1 3 1.80 128,570 39.3

10 La Uribe-And.lucia (K79) 12.5 86 6 2 6 0.83 66,400 92.2

11 San Pedro-Guacari 29.0 88 7 1 4 1.74 60,000 117.0

12 IbaRue (K56)-K85 29.0 46 9 42 3 2.52 86,900 24.6

13 K85-K119 (La Linea) 34.0 61 5 30 4 2.36 69,410 32.9

14 La Linea-Ar.enia 19.3 58 11 27 4 1.53 79,270 42.2

15 Facatativa-Villeta 42.5 59 7 30 4 3.02 71,060 37.9

16 Villeta-Honda 30.0 58 12 26 4 1.58 52,670 31.8

17 Fundacion-Sevilla 29.7 68 19 6 7 2.41 81,140 23.5

18 Se-illa-Rio Frio 18.9 61 20 12 7 1.87 98,940 14.4

19 Rio Prio-La Ye 14.4 63 21 9 7 1.33 92,360 19.8

20 Carreto-Casaverde 19.6 84 4 6 6 1.95 99,490 16.8

21 C.a-verde-Verd.lag. 19.4 90 2 4 4 2.52 129,900 19.2

22 Verdolaga-Cartagena 28.8 83 3 6 8 2.32 80,560 48.3

23 Oiba.Pinchote 36.2 88 2 5 5 2.48 68,510 22.3

24 Pinchote-Chiflas 34.9 87 7 2 4 2.11 60,460 21.5

25 Chifl.s-Piedecue.ta 29.5 71 4 21 4 2.55 86,440 18.8

26 Bcaramanga-EI Playon 25.0 72 10 14 4 1.81 72,400 21.2

27 Pasplona-Donjusna 44.0 86 2 8 4 2.54 57,730 33.2

28 Vill. Roe-rio-Cucut.-Zuli. 24.0 79 8 6 7 1.21 50,420 70.0

29 Venteque.ad.-P.ip. 46.7 84 4 7 5 3.06 65,520 50.5

30 P-ipe-Belencito 41.6 89 2 3 6 2.14 51,440 48.6

31 C.atill4-K219 34.5 88 4 3 5 1.97 57,100 18.7

32 K219-Aipe 32.3 82 3 8 7 1.40 43,340 19.8

33 Aipe.Neioa 39.2 72 3 18 7 1.51 20 26.0

I stiated exchange rate June 1977, US$I _ Cot$ 36.80

Source: Mission

March 1977

ANNEX 3Page 1

COLOMBIA

APPRAISAL OF A SEVENTH HIGHWAY PROJECT

Outline Terms of Reference for the Technical Assistance Programs

(A) Coordinator for:

(a) Rehabilitation Program

(b) Study of Locally Available Materials for RoadConstruction and Maintenance

1. Introduction

The coordinator of the Rehabilitation Program and the Study ofNaturally Occurring Materials is to provide specialized assistance to MOPTand its consultants in carrying out their various functions. He will workwithin the "Division de Programas Especiales de Carreteras" of MOPT.

2. Objective

To ensure that (a) the investments in the Rehabilitation Programare being utilized in the most economical manner to achieve the design lifeof the projects, and (b) the objectives of a study on locally availablematerials are being met.

3. Functions

Rehabilitation Program

(a) determine whether the project designs for all works envisagedin the Rehabilitation Program are relevant at the time ofconstruction and recommend modifications if any are necessary;

(b) coordinate the execution of required design changes between theconstruction site and MOPT's Specialized Divisions;

(c) help accelerate the decision-making process in approving designchanges so as not to cause undue delay to the construction works;

(d) foresee problem areas in the construction programs which maydelay or cause uneconomical costs to the project and resolvethese problems through coordination between the site and theMOPT Specialized Divisions;

(e) cooperate with MOPT's "Division de Interventorias," taking carenot to duplicate this division's activities;

ANNEX 3Page 2

(f) coordinate preparation of quarterly reports for MOPT and theWorld Bank; thes- ennrts are tequired to be submitted withinone month of the reporting period;

(g) coordinate preparation of completion reports for each roadsection and for the entire rehabilitation program; reports tobe presented within three months of the completion of eachsection and the final report not later than three months fromthe final drawdown of the loan.

Study of Locally Available Materials

(h) coordinate, between MOPT and the consultants engaged in thestudy, all field, laboratory and office activities;

(i) advise MOPT on conclusions and recommendations ensuing fromthe consultants' studies; and

(j) coordinate between and advise MOPT's Specialized Divisionson progress and conclusions of the study.

4. Period

(a) The project coordinator would be required from the commencementof the Rehabilitation Program for a period of about two years.

(b) After the initial 24 months, three periodic visibts to Colombiaof two months each are envisaged while the RehabilitationProgram is in progress.

(c) It is envisaged that the coordinator's time would be equallyspent between the construction and study sites and MOPT'shead offices in Bogota.

5. Special MOPT Counterparts

Rehabilitation Program

Six civil engineers with at least eight years' relevant experiencein asphalt paved road design, construction and maintenance.

Study of Material Resources

One geologist

One materials engineer

Four technicians

Central and district laboratories and laboratory staff would assistin carrying out soils mechanics tests.

ANNEX 3Page 3

(B) Manager of the Highway Maintenance Program

1. Introduction

MOPT intends to increase the number of maintenance districts. Thisrequires redistribution of the national road network and changes in allocationof the highway maintenance fleet and personnel.

The highway maintenance fleet is presently in a poor condition,partly due to its age and partly due to lack of supply of spare parts tomaintain it.

MOPT intends to improve the supply of spare parts for equipment andvehicles used for road maintenance. However, before improvements can be accom-plished, MOPT's procedures for requisitioning and supply of spare parts needto be changed.

The Highway Maintenance Program is designed to improve the cost-effectiveness of road maintenance--presently over 80% of budget allocationsgo on fixed expenditures (salaries, etc.)--and to recommend and help implementimprovements in the framework of MOPT's present organization.

It is envisaged that the Program would generally be carried out ona countrywide basis, although the methodology for programming and costing ofmaintenance operations would initially be determined by commencing in threedistricts having distinctly different characteristics.

2. Objective

The objective of the Highway Maintenance Program is to improve thecost effectiveness of road maintenance.

3. Scope

The scope of the Highway Maintenance Program is to:

(a) improve programming, costing and budgeting of routine andperiodic road maintenance;

(b) implement reorganization of MOPT's stores and the purchase,warehousing and distribution of spare parts to the Districts;

(c) institute the programming of preventive and corrective maintenanceof MOPT's road maintenance fleet;

(d) improve the availability of the road maintenance fleet;

(e) improve utilization and operation of the fleet and personnel;

ANNEX 3Page 4

(f) train MOPT personnel involved in road maintenance activities,su-h as engineers, mechanics, storemen, operators, drivers,inspectors, foremen and technicians.

The Highway Maintenance Program will be coordinated by a projectmanager who will be responsible to the Commerce and Finance Directorate andto the Operations Directorate and will coordinate and supervise four groupsof specialists in the following fields:

(1) implementation of reorganization of warehousing, purchasing anddistribution of spare parts;

(2) programming and implementation of preventive and correctivemaintenance of the fleet;

(3) programming, costing and budgeting of maintenance of thenational road network; and

(4) improvements in utilization and operation of equipment andpersonnel for road maintenance.

4. Functions of the Program Manager

(a) advise MOPT on a viable equipment replacement schedule toreduce the average equipment life to about seven years over theperiod 1978 to 1981;

(b) advise MOPT on the annual value of spare parts required tomaintain the fleet efficiently;

(c) advise MOPT on required changes in organization and proceduresfor purchasing, warehousing and distribution of spare partsto the districts;

(d) advise MOPT on the ways and means to improve workshop practicesso as to increase the availability of equipment for road mainte-nance requirements;

(e) advise MOPT on the ways and means to improve utilization andoperation of equipment for road maintenance;

(f) coordinate and supervise the activities of the four groupsimplementing the program;

(g) establish guidelines for determining the annual budget for thedistricts by providing separate categories for routine mainte-nance, periodic maintenance, emergency works, fleet replacement,spare part requirements, etc.

ANNEX 3

Page 5

5. Period

The Highway Mlaintenance Program is expected to start in mid-1977 fora two and one-half year period. The program manager's activities would berequired to cover the entire program.

6. MOPT Counterparts

The main counterparts to the project manager are the chiefs of theMOPT Divisions dealing with road maintenance and stores. Special counterpartswill be required for the four specialist groups as indicated.

ANNEX 3Page 6

(C) Reorganization of Stores ,Purchasing, Warehousing andDiqtribution of Spare Parts

1. Objective

To provide an economic and timely acquisition of spare parts, theirwarehousing and distribution to the district workshops.

2. Function

(a) recommend to MOPT required changes in MOPT procedures, storefacilities, purchasing, warehousing and distribution of spareparts;

(b) reorganize warehousing in the central and district stores byimproving indexing and recording of movement of spare parts;

(c) establish and implement purchasing and distribution procedures(including automatic reordering) of spare parts for correctiveand preventive maintenance;

(d) train storemen and assistants in central and district stores,and mechanics in the districts in identification, ordering,warehousing and indexing of spare parts.

3. Period

(a) the team to implement the reorganization and training would consistprimarily of a team leader experienced in all aspects of purchasingand warehousing of spare parts and three storemen, each for a20-month period;

(b) the implementation of the reorganizing of the procedures in thestores would begin in mid-1977 for a period of eight months, atthe end of which the central store and all district stores shouldhave the capacity and capability to receive consignments of spareparts for the corrective and preventive maintenance programs;

(c) training to be provided to the storemen over a ten-month periodstarting after reorganization of the stores.

4. Special MOPT Counterparts

Two senior storemen/purchasing officerSix storemen

ANNEX 3Page 7

(D) Program to Introduce Corrective and Preventive Maintenance toMOPT's Fleet in the Districts

1. Objective

To improve the availability of the fleet of road maintenanceequipment.

2. Functions

(a) assist the districts in determining economical life of equipmentbased on utilization and compile a replacement sdhedule toreduce the average life of the equipment to about 7 years overthe period 1978-1981;

(b) assist the districts in determining values of spare parts requiredfor annual budget presentation for the years 1978 to 1982;

(c) advise and assist districts on programming preventive and correctivemaintenance;

(d) assist district workshops in estimating procedures for identifica-tion of spare parts from makers' catalogs;

(e) assist districts in obtaining accurate and prompt compilation ofequipment availability and utilization data.

3. Period

Three mechanical superintendents would work with the districtorganizations. The program is expected to start in October 1977 and continuefor about 20 months through the delivery period of the spare parts providedunder the Seventh Highway Project.

A tentative division of the districts for the mechanical super-intendent is as follows:

Superintendent No. 1 -- Districts 2, 4, 8, 13, 15, 16 and 25

Superintendent No. 2 -- Districts 5, 6, 11, 14, 17, 18, 19, 23, 24

Superintendent No. 3 -- Districts 1, 3, 7, 9, 10, 12, and 20, 21,22, 26

4. MOPT Counterparts

Each mechanical superintendent would have two counterparts who wouldbe mechanics with substantial experience in the districts.

ANNEX 3Page 8

(E) Improvement of Road Maintenance Personnel and Equipment Performance

1. Introduction

The United Nations agency, UNIDO, has an expert advising MOPT'sdistricts on equipment utilization. In addition to this input, furthertechnical assistance is envisaged to establish sound road maintenance pro-cedures in Colombia by improving the utilization and performance of thepersonnel and equipment of the districts in maintenance of the road network.

2. Objectives

(a) improve the utilization of equipment in road maintenance;

(b) improve the output of road maintenance personnel;

(c) improve the quality of routine and periodic maintenance ofpaved roads.

3. Functions

(a) analyze the methods and equipment used for carrying outmaintenance in the districts;

(b) determine the most economic method for carrying out the variousmaintenance tasks, taking into consideration materials available;

(c) make recommendations regarding equipment and manpower requirementsto maintain the district road networks economically;

(d) instruct the sector engineers and the inspectors on proper pro-cedures for maintaining gravel and asphalt paved roads. Instruc-tion to be carried out by seminars and on-site demonstrationsand training;

(e) assist sector engineers in determining ways and means to improveexternal and internal drainage of asphalt paved roads;

(f) assist sector and district engineers in determining annual andmonthly programs for road maintenance and costing of the programfor budgetary and management uses.

4. Period

The assistance would commence in mid-1977 and would coordinatewith the UNIDO program. It is envisaged that four experts (one for program-ming, costing and budgeting, one for equipment utilization and two for asphaltroad maintenance) would be required over a two and one-half year period.

ANNEX 3Page 9

5. Special MOPT Counterparts

Ten civil engineersTwelve inspectors

The intention is that the counterparts, who should have had consider-able experience in road maintenance, would assist the experts in the trainingprogram, after an initial learning period. The training program should conti-nue after the experts have left and should be designed as a permanent featureof MOPT's activities in the districts.

June 1977

ANNEX 4Page 1

COLOMBIA

APPRAISAL OF A SEVENTH HIGHWAY PROJECT

Terms of Reference for a Study of Locally AvailableRoad Construction and Maintenance Materials

1. Introduction

Highway construction and maintenance, and civil engineers ingeneral, are in need of a study of locally available material sources witha view to using this information in preliminary cost estimates and in engi-neering and planning studies for the construction and maintenance of highways.

The foregoing prompted the decision to carry out an inventory oflocally available materials suitable for construction. The following taskswould be included:

(a) compilation, study and classification of already existing datain studies that have been carried out in the past on locallyavailable construction materials;

(b) supplementing existing data with a research program andinvestigations of locally available construction materialswith a view to using rocks and soils as road constructionor maintenance materials.

2. Obiectives

The study in question would serve the following objectives:

(a) eliminate the need for costly searches for materials duringhighway feasibility or engineering studies;

(b) provide MOPT districts with information on the availabilityand economic utilization of materials, and also on accessroads and equipment needed for the exploitation, extraction,preparation and transportation of materials for highwayconstruction and maintenance.

3. Scope of the Study

New sources of materials will be located by means of photogeologicalstudies. Field tests to identify outcrops of rocks, their grade and depositcharacteristics, stratigraphy, structure, degree of weathering and metamor-phism would be carried out. Soils studies, on origin and grain size classi-fication, texture, structure, thickness and uniformity, would be executed.Sources that could be used at each stage of highway construction and maintenance

ANNEX 4Page 2

would be identified. The properties of the materials, deposit characteristics,utilizable volume and tiue _thbd uf extractiorh would Ie determined.

Properties of the materials would be determined in the laboratoryusing representative samples from the borrow pits identified in the study,taken, depending on the case, from open-cut shafts (apiques), borings orexcavations, plotted to identify location, depth, land level (prior to excava-tion, indicating the topographic location of the borrow pit), the type ofmaterial found and other observations considered relevant. Areas where thedifferent materials are found would be identified and demarcated along withthe average depth of the strata, and the estimated volumes of utilizablematerial.

Laboratory tests required on the samples would be as follows:consistency range, grading, wear, impact, adhesion, sand equivalent, resis-tance, absorption, specific gravity, Proctor, CBR and others needed to deter-mine what the aggregates can best be used for.

Problems that might be encountered when extracting the materialsand the construction procedures suited to each type of formation would beindicated. It should be indicated whether pits should be exploited as a wholeor by strata and the most suitable equipment for the excavation would beselected.

In cases of rock where explosives would normally be used for excava-tion, the depth and inclination of the holes, the type and quantity of explo-sive and the method to be used for collecting and transporting the materialswould be identified.

4. Execution of the Studies

Objective No. 1 concerning the compilation and consolidation ofexisting data can be handled in cooperation with MOPT through the HighwayDistricts.

By dividing the country into tentative study areas based on specificmorphological or operational criteria, the consultant would carry out a pilotstudy which, besides constituting part of the study proper, would serve toidentify modifications that might be advantageous.

Adoption of this functional methodology will make it possible forthe consultant to conduct studies in all areas, taking care to see that maxi-mum use is made of MOPT's installed laboratory capacity and staff.

In view of the type of geological correlation surveys involved andthe comprehensive nature of the study, it is considered advisable and appro-priate to make petrological checks of the studies submitted by the consultants.

June 1977

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_ d l4rr1o_7 w de FZ::;1 '.Q _, 79_ -1.7

21911399 1,71.9 5 91,31, 391._ 91,9131.1 91113.7:;.......

2i31, 7419191 -CrtF 1 9,7 e 1 4 _

COLOtBlA

SEVENTH HIGiWAY PROJECT ANNEX 5

Table 2

Proiect Indicators

F lbili.ta.tion Pro ramTrffi V lume AT

RO A D L 0 S 1 9 7 8 1 9 7 9 1 9 8 0 1 9 8 1 1 9 8 2

No. From - To Foreeast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual

MHedellin-Versalles 4,890 5,281 5,704 6,160 6,653

2 Vereallea-Pintada 2,030 2,192 2,368 2,557 2,762

3 Pereira-Asia (K44) 4,260 4,601 4,969 5,366 5,796

4 Asia (K44)-K79 1,850 1,99B 2,158 2,330 2,517

5 K79-K100.5 1,770 1,912 2,065 2,230 2,408

6 K100.5-K131 (Felisa) 2,030 2,192 2,368 2,557 2,762

7 Cartago-K25 3,280 3,542 3,826 4,132 4,462

8 K33-K52.5 3,120 3,370 3,639 3,930 4,245

9 K52.5-Uribe (K66.5) 3,670 3,964 4,281 4,623 4,993

10 Uribe-Andalucia 5,160 5,573 6,019 6,500 7,020

11 San Pedro-Guacari 6,510 7,031 7,593 8,201 8,857

12 Ibague (1(56)-1K85 2,330 2,516 2,718 2,935 3,170,

13 K85-K119 (Linea) 2,340 2,527 2,729 2,948 3,184

14 La Linea-Armenia 2,340 2,527 2,729 2,948 3,184

15 Facatativa-Villeta 2,250 2,430 2,624 2,834 3,061

16 Villeta-Honda 1,590 1,717 1,855 2,003 2.163

17 Fundacion-Servills 1,670 1,870 2,095 2,346 2,628

18 Servilla-Rio Frio 1,330 1,490 1,668 1,869 2,093

19 Rio Frio-La Ye 1,590 1,781 1,994 2,234 2,502

20 Carreto-Casaverde 1,280 1,382 1,493 1,612 1,741

21 Casaverde-Verdolaga 1,780 1,922 2,076 2,242 2,421

22 Verdolaga-Cartagena 3,860 4,169 4,502 4,862 5,251

23 Oiba-Pinchote 1,570 1,696 1,831 1,978 2,136

24 Pinchote-Chiflas 1,550 1,674 1,808 1,953 2,109

25 Chiflas-Piedecuesta 1,500 1,620 1,750 1,890 2,041

26 Bucaramanga-El Playon 1,650 1,782 1,925 2,079 2,245

27 Pemplona-Donjuana 1,440 1,555 1,680 1,814 1,959

28 Villa Rosario-Cucuta-Zulia 4,790 5,173 5,587 6,034 6,517

29 Ventaquemada-Paipa 3,350 3,618 3,907 4,220 4,558

30 Paipa-Belencito 3,190 3,445 3,721 4,018 4,340

31 Castilla-K219 1,500 1,620 1,750 1,890 2,041

32 K219-Aipe 1,411 1,524 1,646 1,777 1,920

33 Aipe-Neiva 1,729 1,867 2,017 2,178 2,352

Source: Mission

March, 1977

ANNEX 5Table 3

COLOMBIA

SEVENTH HIGHWAY PROJECT

Project Indicators

Vehicle Weight Control Program

Execution and Funding Reguirements

Description Implementation 1977 1978 1979 1980

Preliminary Studies Forecast

(Phases I and II) Actual

Engineering and Contract Forecast _

Documents (Phase III)Actual

Construction and Forecast

Installation Actual

Total Funds (US$ millions) Forecast 0.05 2.20 4.60

Actual

Local Funds (USE millions) Forecast 0.01 0.54 2.30

Actual

Bank Funds (US$ millions) Forecast 0.04 1.66 2.30

Actual

Source: Mission

March 1977

ANNEX 5Table 4

COLOMBIA

SEVENTH HIGHWAY PROJECT

Project Indicators

Highway Maintenance ProgramFunding Requirements

(Current US$ million)

Description Implementation 1977 1978 1979 1980 1981 1982

Technical Assistance Forecast - 0.5/0.1 0.6/0.2(Bank/local funds)

Actual 0

Extensions to Stores and Shops Forecast - 0.3/0.3(Bank/local funds)

Actual 0

Spare Parts for repairs Forecast - 2.4(Bank funds)

Actual 0

Spare Parts for Preventive Maintenance Forecast - 1.4(Bank funds)

Actual 0

Equipment Forecast - 10.0 10.0(Bank funds)

Actual 0

Equipment Forecast - 4.0 5.0 16.0 15.0 14.0(Local funds)

Actual 0

MOPT funds for Staff, Spares Forecast - 46.0 52.0 57.0 62.0 67.0and Materials

Actual 34.0

Total Funds Forecast - 65.0 67.8 73.0 77.0 81.0

Actual 34.0

Local Funds Forecast - 50.4 57.8 73.0 77.0 81.0

Actual 34.0

Bank Funds Forecast - 14.6 10.0 0 0 0

Actual 0

Source: Mission

March 1977

COLOMBIA ANNEX 5Table 5

SEVENTH HIGHWAY PROJECT

Project Indicators

Highway Maintenance Projects

Production Aims

Description Production 1977 1978 1979 1980 1981

Fleet Availability 1/ Forecast 50% 60% 65% 70%

Actual 50% , -

Fleet Utilization 2/ Forecast 40% 50% 55% 60%

.Actual 35% _

Average gradings/km orecast 12 16 20 22

on gravel roads____ ___ ___ ___ ___ ___ ctual 10 _ _ _ _ _ _ _ _ _

Average gradings/km Forecast 10 14 17 19on earth roads

____ ____ ____ ____ ___ Actual 8 _ _ _ _ _ _ _ _ _

Km of gravel roads Forecast 1400 1600 1800 2000to be regravelled

-Actual 1300

Km of earth roads Forecast 100 300 500 700to be gravelled

Actual 0

Estimates of Forecast 18% 14% 10% 6%z patching as percentX of paved area Actual 20%

k Estimate of sealing Forecast 8% 16% 24% 30%m as percent of paved_ area Actual 4% .

C-I Estimate of patching Forecast 8% 6% 4% 3%m as percent of paveda area Actual 9%09

Estimate of sealing Forecast 2% 3% 4% 4'%as percent of pavedarea Actual 1%

1/ Availability - 2000 Hours - time workshop2000 Hours

2/ Utilization = 2000 Hours - time in workshop and time awaiting employment2000 Hours

3/ Estimates for patching and sealing for surface treated (s.t.) and asphaltconcrete (a.c.) paved roads are based on the highway design and maintenancemodel's output.

ANNEX 6Page 1

COLOMBIA

APPRAISAL OF A SEVENTH HIGHWAY PROJECT

Details of the Economic Assessment

A. Road Rehabilitation Program

(i) Costs

1. All construction and maintenance costs have been calculated freeof taxes and subsidies (Table 12). It was assumed that in both the "with"and "without" project cases, a comparable level of routine maintenance, asprovided under the Maintenance Program of the project, would be carried out;this item, being the same for both alternatives, has been omitted altogether.Nonetheless there are some roads in the program on which, because of the highinstability of the area, even normal routine maintenance would not suffice toguarantee them being open; a special landslide removal cost was assessedagainst them in the "without" project case (Table 15). For-all sections, onlythe least cost technically viable rehabilitation alternative was considered,i.e., that which extended the life of the existing road for ten more years.Only minor improvements, mainly on safety grounds, were allowed. The analysisis therefore confined to ascertaining whether the least cost alternativereturn rates higher than the opportunity cost of capital for the country,which is currently estimated at 11%. Rates of return estimates for the sub-projects in the program are therefore conservative values due to non-quantifiedbenefits.

(ii) Traffic

2. Traffic volumes on the roads to be rehabilitated were estimated bymeans of surveys carried out annually by MOPT and checked by INGEROUTE (France)during project preparation, The latest available estimate was 1975, which wasupdated to year 1 of the analysis, assumed to be 1978, by assuming that trafficcontinued to grow, as in the past, at about 8% per annum. The same growthrate was assumed during the ten-year period following construction. The rateof 8% was used because it is the average rate for the country as a whole andbecause all sections in the program are major trunk highways where trafficpatterns follow the national average. The only exception admitted in theanalysis was a section of the Eastern Trunk Highway (lots 17, 18 and 19) which,over the past few years, had traffic increases well beyond the national average(14% vs 8%) and which will most likely support even higher growth when pavingof the through-connection from Santa Marta to Bogota is completed in 1979. Arate of 12% was adopted for these sections.

3. Other than admitting that sections 17, 18 and 19 of the Rehabili-tation Program, along the Eastern Trunk Highway, would have higher ratesof growth of traffic than the normal average growth over the period from 1971to 1975, no generated traffic was admitted. The nature of the roads on whichthe rehabilitation is to be carried out is such that traffic is already well

ANNEX 6Page 2

established; furthermore, all roads run along already developed corridors.Any generated traffic woulJ, --- circumstances, have to be induced bya general growth of the economy rather than by demand induced by thegrowth of particular areas due to the price elasticity effect on thegoods transported. Estimating the additional future growth of the economygenerated by the implementation of the proposed rehabilitations is clearlybeyond the scope of transport analysis only and has therefore been omitted.Inasmuch as it may occur, however, it would only add additional benefitsand therefore increase the rate of return for the Program.

(iii) Benefits

4. To assess benefits due to the rehabilitation, it was assumed that,without the project, vehicle operating costs would increase parabolicallyduring the ten-year life of the rehabilitation investments up to a maximum of20% above their current level. A parabolic function was considered to bestreflect the evolution of vehicle operating costs in a situation where roadsare reaching an advanced stage of deterioration and would therefore increasevery fast as the situation worsens under the effect of weathering and traffic.Present levels of operating costs above what they would be were the roads in an"as new" condition were assessed empirically as a function of the nature ofthe rehabilitation works required to bring the roads to a comparable condition,the traffic level on them, the estimated reduction in operating speeds belowthe design speed and a visual inspection of each section. On this basis, arank number was estimated for each section to which a road condition coeffi-cient was assigned. This coefficient varied between 1.04 and 1.16, meaningthat the condition of the roads would result in vehicle operating costs (VOC)between 4% and 16% above the "as new" condition.

5. Operating costs for different types of vehicles were estimated forroads in an "as new" condition by INGEROUTE (France) and updated to December1975 by MOPT's Planning Office. For analysis purposes, three types of vehiclesand terrain were considered: light vehicles, buses and trucks and flat, rollingand mountainous terrain (Table 16). It was assumed that "normal" costs wouldbe achieved after rehabilitation and that that level would be maintained duringthe life of the subproject due to the improved routine maintenance broughtabout by the project. A programmed seal coating of the roads in the fifthyear of the expected 10-year life of the rehabilitations was considered.

(iv) Typical Example

6. Development of the analysis for a typical section between Castillaand Km 219 along the Eastern Trunk Road south of Bogota is shown in AnnexTables 1 to 3. Table 1 shows the input data as provided to the computer modeland the traffic projection in vehicles per year; it also shows the constructioninvestment costs, columns Cl and C3, for the "without" and "with" project cases,respectively, as well as the vehicle operating costs in each case, columns C2and C4 respectively. The difference between the two, column BC, is the netbenefit to be expected from the rehabilitation of the section. The rate of

ANNEX 6Page 3

return on this particular section is 18.75% based on the median, being thebest estimate of the values of the variables involved in generating theconstruction and the vehicle operating costs in each case.

7. If the intervening variables are assumed to be normally dis-tributed as reflected by input data in Annex Table 2, with means and stand-ard deviations as noted in Table 17 of the main report, a probability dis-tribution of the rate of return is generated as in Annex Table 3. The meanof the distribution is 31% being the value of the rate of return with a 50%likelihood of occurrence. The probability of the rate being below 14.75%is nil, and this is, therefore, the minimum value that can be expected of it.Such values are obtained by analyzing 250 randomly selected combinationsof the intervening variables. Table 2 also shows the values of the variablesin one of those samples, sample 1.

8. Similar analyses were carried out for each section in the Program.The combined costs and benefits of implementing the full program are shownin Annex Table 4 for each year of the analysis. Annex Table 5 then showsthe stream of cost and benefits and the calculation of the rate of returnfor the full program, which is estimated to be 36.25%.

B. Highway Maintenance Program

(i) General

9. The effects of implementing the Highway Maintenance Program of theproject were assessed by means of the Highway Design and Maintenance (HDM)Model of the Bank; the economic feasibility of the results obtained were thenassessed by means of the Cost Benefit Analysis Model (CBPACK). No attempt hasbeen made at determining optimum maintenance policies for the country. Theanalysis has been constrained to assessing whether the actions made possibleby implementing the Program in the project are justified, i.e., whether theadditional resources required to carry out the Program yield rates higher thanthe opportunity cost of capital.

(ii) Maintenance Activities and Unit Costs

10. For analytical purposes, maintenance of both paved and unpaved roadsis divided into five activities (Annex Tables 6 and 7). The frequency in theexecution of these activities and their unit costs allow defining any com-bination of situations, the overall outcome of which is a certain level ofmaintenance for the highways in the network. Table 6 defines, based onlimited available data, observation and experience in Colombia, the presentfrequency of maintenance activities and their unit costs. This presentsituation is defined as the "without" project case with which the situation,after implementation of the Program, "with" project case, is compared. 1/

1/ The Rehabilitation Program in the project is assumed to be carried outin both the "with" and "without" cases.

ANNEX 6Page 4

11. Table 7 defines the "with" project case and takes into considerationa number of changes that would be caused by the implementation of the Mainte-nance Program as well as other components of the project. In particular,increased productivity achieved with the younger maintenance fleet is assumed.Two factors affect equipment productivity: its availability and its utiliza-tion. Availability is assumed to increase from the present 40-50% to about70%, and this change would be brought about by the switch to a programmedpreventive maintenance system for the equipment, together with renewal ofaged units and an adequate supply of spare parts. Utilization is estimatedto improve substantially due to the effects of training field personnel andimproved maintenance programming. Although no utilization statistics arekept, an improvement of 25% is not an unreasonable objective and changes ofthis order have been assumed. Considering the combined effect of improvedavailability and utilization, productivity is, in general, assumed to increaseby about 75% except for grading and spot gravelling where the overcoming ofpresent shortages of dump trucks and motorgraders would allow even largerincreases.

12. Increases in productivity would generate reduced unit costs for theexecution of the different activities. In the "with" project case, the reduc-tions have been estimated at about 80% of present costs. However, such reduc-tions do not apply to labor-intensive operations such as routine cleaning ofdrains and culverts, shoulder repairs or vegetation control, nor were theyconsidered to apply to activities which are normally contracted out by MOPT,such as asphalt overlays and rehabilitation works. Tables 6 and 7 summarizethe unit costs used in the "with" and "without" project cases.

(iii) Analysis Network

13. For purposes of the analysis, the national highway network was brokendown into 29 well-specified and characterized links, 20 to identify the unpavedportion of the network and 9 to reflect the paved roads (Annex Table 8). Toassess the maintenance requirements of each link, a detailed description ofthe geometric characteristics and present road condition is required as wellas details of the road width and traffic. These characteristics, togetherwith a definition of the climatic, altitude and other geographical variables,determine the degree of deterioration caused on each link by the traffic.This deterioration determines the required annual maintenance cost and theyear-to-year condition of the link.

(iv) Maintenance Operations and Frequency

14. Tables 9 and 10 summarize the average annual volume of maintenanceoperations on each link over the 10-year analysis period in both the "with"and "without" project cases for the unpaved and paved roads respectively.Also, for comparison purposes, the economic costs of maintaining each link(both average annual total and per km) have been indicated. In general, costsof carrying out the maintenance after project implementation are higher thanat present by about 50% on unpaved roads and by about 15% for paved roads.

ANNEX 6Page 5

Maintenance operations are increased and, for unpaved roads, often doubled,while, for paved roads, patching is greatly reduced in favor of more seal-coating and strengthening by overlays or rehabilitation. The overall conditionof the network is consequently much improved in the "with" project situationvis-a-vis the existing conditions; this is clearly borne out by the reductionof the user costs through the analysis period.

(v) Benefits

15. Benefits from the implementation of the Maintenance Program areassumed to occur only on account of avoided vehicle operating cost increasesshould the Program not be implemented. Annex Table 11 describes typical usercosts on selected links for gravel, surface treated and asphalt concrete roadsas they are perceived now and as they would become toward the end of theanalysis period. The Highway Design and Maintenance Model calculates usercosts specifically for each link each analysis-year and takes into account theparticular condition of that link. User costs are therefore not strictlycomparable with those obtained from other sources (e.g., MOPT) where estimatesare calculated for ideal road conditions, terrain types, etc. For example,vehicle operating costs used for purposes of assessing the Road RehabilitationProgram of the project are generally comparable but not identical to thoseencountered on the select links of the maintenance model (Table 12 comparesaverages for similar conditions). Having estimated the user cost on each linkin each successive year of the analysis for both the "with" and "without"project situations, it is possible to estimate by how much user costs wouldincrease should the program not be implemented. These are the benefits asnoted on Annex Table 13, which is a summary of Table 18 of the main report.

(vi) Ecotiom.ic Assessment

16. Table 13 summarizes the cost and benefit streams of implementingthe two alternatives made possible under the program, one with limited rehab-ilitation of the surface treated roads (about 1,000 km over 10 years) and theother with extensive rehabilitation, which would occur particularly in theearly years of Program execution (altogether about 2,400 km over 10 years).Table 13 also presents the calculation of the economic criteria used to assessthe feasibility of the proposed Program. All criteria show the highly benefi-cial effect of implementing either of the two alternatives. The secondalternative (extensive rehabilitation) has a higher net present value whichsuggests that, in the absence of constraints, this should be the selectedoption. Since both budgetary and contracting industry constraints exist, itis suggested that the limited rehabilitation option be implemented.

C. Vehicle Weight Control Program

17. The economic feasibility of installing the weighing stations wasassessed assuming that deterioration of a road is directly related to thenumber of equivalent standard axles passing over the roads. The referencestandard for comparison of both the existing and the future situations (withoutand with projeet respectively) was the number of standard equivalent axles in

ANNEX 6Page 6

an ideal condition in which no overloading existed. Using Colombia's flexiblepavement design standardc (' -1ens rstructural de Pavimentos Flexibles, MOP,1970), the equivalent number of single axle repetitions was computed for fourcategories of traffic volumes (Annex Table 14). By comparing the total numberof equivalent axles with the ideal, in which an overlay of the roadway wouldhave been programmed for the 10th year of its life, the corresponding timingof the overlay in the two situations, with overloading and after Programimplementation, was determined.

18. In the absence of overloading surveys, it was assumed that trucksmoving on the roads (50% of ADT in all traffic categories) were distributedas follows:

30% empty50% normally loaded to the legal maximum10% overloaded by 10% above the legal maximum8% overloaded by 50% above the legal maximum2% overloaded by 100% above the legal maximum

It was further considered that 90% of trucks are single rear axle vehiclesas is borne out by truck registration surveys.

19. Because of the different traffic levels, different thicknesses arerequired for the overlay to strengthen the structure to its required designstandard for a life of 10 years. For traffic levels up to 2,000 ADT, 5 cmare adequate, and, above that, 7.5 cm are necessary. On the basis of detailedengineering designs prepared for the Rehabilitation Program in the project,the cost of overlaying the roadway was estimated for each case (Annex Table 14).

20. Implementation of the Program was assumed not to eliminate alloverloading but to reduce it by half, avoiding all loads over 10% above thelegal maximum. Given the traffic distribution in each of the four trafficcategories, it was concluded that only at traffic levels above 1,000 ADT did aweight control program have any significant effect on the timing of overlays,and that the need for overlaying the roads with higher traffic levels wouldoccur in the ninth year of the pavement life as opposed to the present fifthyear. Thus the ideal 10-year overlay cycle is not reached, but only a 9-yearcycle. Lengthening the life of the pavements from their present 5 years to 9years generates a mathematical series in which no overlays are required insome years until the new 9-year cycle is reached for the whole network. Toavoid generating a stop-go program, differences were smoothed out within the8-year period required to achieve the new 9-year cycle as shown on AnnexTable 15.

21. The economic investment costs (including contingencies and super-vision) and operating costs of the weighing stations, and the economic costsof overlaying the required kilometreage in both the "without" and "with"program situations are in Annex Table 15. The rate of return of the programwas calculated as shown in Annex Table 16. The economic return for the impl-mentation of the program is thus estimated to be 45.8%. The net present valueof the program is US$17.35 million at a discount rate equal to the opportunitycost of capital in Colombia (11%).

ANNEX 6Table 1

COLOMBIA

SEVENTH HIGHWAY PROJECT

Section Castilla-Km 219

Best Estimate Economic Rate of Return

LRUN RI5K

iNruTi DATA rILC NAME.I CA.2t19

DATA rILE CAS21t'

1.20 5.00 4.00 4.00 25.00 NO236550. 236550. 157700. 236550. 547500. 0.00 0.00

0.00 10.00 0.00 0.00 1.00 0.00 0.00

1.06 0.00 0.00 34.50 0.00 0.00213S25 71175. 262000. 3.22 3.60 4.50

-303 4.43 6.34 5.07 6.0° 0.'6

0.00 0.00 1.00 0.00

TRAFr IC547S00. 591300. 6'30C04. 60,i."2. 7440.60 004457,. C0614.

930319. 1013304. 1094455. 11C2011. 1276571. 13706977 1400CC,.

1600112. 1736761. 1075702. 2025757. 2107010. 2362044. 2551071.

2756021. 29761502. 3214622. 347179"2. 749535. 4049477. 4373456.

4723Z3Z2. 5101190. 5509273. 5950036i 6426030. 6940121. 749533,Q

corRm= 4.10730UJ= 4.430354

0.01096

YEAR C1 C2 C3 C4 0c

1 0. 2430100. 1577000. 2430100. 1577000.

2 0. 2630 9'7. 0. 2475951. 1.55037.

3 0. 2S062462. 0. 2674026. 100436.4 0. 3129252. 0. 2007940. 241304.

S 0. 3436735. 0. 31'"0'4. 317751.6 0. 3791020. 236550. 3Z60503. 105960.

7 O0 4199040. 0 .36390O561050,

:0 0, 4660646. 0. 3929O21. 73Z.25.

9 0. 5200720. 0. 4243342. 965306.

1(0 236550. 532n932. 2Zi650S. 4502009. 1246523.

1 0. 4949433. 0. 4949433. 0.12 0. 5345307. 0. 5345307. O.

13 0. 5773010. 0. 5773010. 0.14 236550. 6234059. 236550. 6234059. 0.15 0. 6733647. 0. 67Z33647. 0.

16 0. 727233S. 0. 7272330. 0.

17 0. 71054124. 0. 7054124. 0.10 236550. 0402454. 236550. 0402454. 0.

19 0. 9161050. 0. 9161050. 0.20 0. 9093934. 0. 9093934. 0.21 0. 10605440. 0. 10605440. 0.

22 236550. 11540204. 236550. 11540204. 0.23 0. 12463506. 0. 12463506. 0.24 0. 13460506. 0. 13460506. 0.

25 0. 14537432. 0. 14537432. O.

26 236550. 15700424. 236550. 15700424. 0.27 0. 16956456. 0. 1'956456, 0.

23 0. 10312972. 0. 10312972. 0.

29 0. 19770000. 0. 19770000, 0.30 236550. 21360244. 236550, 21360244. 0.31 0. 23067060. 0. 23069060. 0.32 0. 24914504. 0. 24914504. 0.33 0. 26907740. 0. 26907740. 0.

34 236550. 29060360. 23655O. 29,0603S0. 0.

35 177413. 31305192. 177413. 31305192. 0.

RATE or RETURN = 10.75

Source: Mietin

April 1977

ANNEX 6Table 2

COLOMBIA

SEVENTH HIGHWAY PROJECT

Section Castilla-Km 219

Risk Analysis Input Table

El :4T R F I LE C R. s* 2 1 9

1 .II *0 -. ii 4 . 00II 4. o0 , 0 , D, :65-0. =b.=.0.:r-. 157- 11. . 547.00, . 0iii

3.ci 1 o7:7 O.0 u.004:, 15.0'' 0 0.0.1 .0. I .. .I I,.ICIO . /4.So c, I r .1:10 I I , off

_.3 2 711 73D . 262,117-. a -: .,IDI . .6C 0 4 .583 .33 4.4.3 6.34 D .07 6.02 .6o .oo .00 1 .00 0,.0o

Z1 LI E 1

rtlEl- 0'.94

0D.0? 0. fo:f

.Fi 1z= 1 . 49e, 1 -- RER- -T

-O.110 -0 .00B. _1= 4.13115

P. ID = 0.47Z 1 - -PE RC T

-0.00 0 , 00B.R EI= . 10.00000

0 . 0. 6Z -1---ER0T

-O . OcP -Oc . 02

BH. 1E I = 1.04090

---- -- -- -- ---T-

ZRF II , -ER--T

T RiaF.7 I

5_ 3 53I I0 I.7. 623460. 6 73 .37 73 . 6 R 7. 7 I 9167 8. 35,O1 .

?.334 .3. 997236. 1 07706.. 116?2.35. 125629.3. 1 356797. 1465.3 40 .1 532567. I7 0917.3 . 1834590 . 199-35739 .2153065. 2325310. 2511335.- 12242. 292221 . .316.35D3. 3416643. 3639974. 3980 f 1 1. 43 0.39,4

46C4,3302. 3020166. 34217,3. .3833320. 632 P 961. 6829878. 3 376 263.

Source: Mission

ANNEX 6Table 3

COLOMBIA

SEVENTH HIGHWAY PROJECT

Section Castilla-Km 219

Frequency Distribution and Cumulative ProbabilityDistribution for the Internal Rate of Return

FREQ.--ciJ'. PROD. FREQ.--CUM. PRiD.LESS THAil v,qLUE) (LESS THArEN QLUE)

INiTERVAL UPPERBDU.NDS INTERVR.- UPPERBOUiIDUS

O 0.00 0 0.3214.730 30.300

2 0.08 0 0.3215.372 30.922

0 0.08 0 0.3213.934 31.344

0 0.03 0 Cf.s216.616 32.166

0 0.0 0 0.5217.23?' 32.733

1 0.12 0 O.3217.360 3.3.410

0 0.12 0 0.3218.482 34.032

0 0.12 1 0.3619.104 34.634

0 0.12 1 0.6019.726 .35.276

1 0.16 1 0.6420.348 33.898

0 0.16 LI 0.6420.970 36.D20

0 0.16 1 0.6321.392 37.142

0 0.16 1 0.72'2.214 37.764

0 0.16 1 0.7622.S36 38.336

0 0.16 0 0.76Ž3.433 -39.00S

24.0830 2 0.24 0 0.76

24.702 t 0.28 40.232 1 0.801 0.32 0 0.30

23. 324 40.374

2-51. 946. 2 0.40 41.496 1 0.34

0 0.40 0 0.3426.363 42.113

27.190 t 0.44 42.740 0.88

27.312 ° 0-44 43.362 0.92

0 0.44 1 0.9628.434 43.334

23.0536 0-44 44.606 .96

29.678 2 0.32 40.830 0.96

1 1.00

DISTRIB-JTIU,Y M1EAN = 31.00STRNDARD DEVIRATIONi = 3.32703

…----- --- ---D RIiSK &2iA&tSIS -----

Source: Mission

April 1977

COLOiMBIA

SEVENTtI HIGHWAY PROJECT

Rehabilitation Program

Stream of Costs and Benefits

(December 1975 US$ Million)

f_____________ Y E A R S

(1) (2) (3) (4) (5) (6) (7) (8) (9) (Ic)

-Elnr,ijl . ' lll9fVt 129068;. 134 1444. 188 .94. 1'95e,9 t. 294'3IE.2 ;3b6/UIJZ 4641868. 6550346.C,.1r,NO.I~IIXllFI 01 ;!f S73331 426441. 561V54 1. 3704i39. 1 1307l-3 1706065. 2710942.1

J45FAXIIiLIV *l 722253. 8419@4Ll;. 10206 41. 1270I 300. l;' _% 2043.368. 261i?' 0 32C9q$42. 452"756.

-Fl ; 3 3 - 49'4i9 141917 . 741-1:33. 155 '300. 2159955 29SJ4 -;. 4757662.

5^9|^l-,i-'i-'. ....... 347tl9. 405215-' 4'41-: 4. htll',49 278R91 . 9 471. 125 1770.. 1588 1I 0. 359618?.

'3 '' 254328. 4 9-5Z 1 . 2 8It 9 0379. 121 3-4308. INe3f-s4. 31 6675,4.

i 3O'i8. 9492'; 111.. I 1054,51, 1 0 l9 88 2443592. 2 ... 92

C5,5iiriiI 98e 0_ 1123i;7 L14 8 |, 2 b5 10 0°t10 2349324. 28914514. 3 5ti-7 440 170.

ttO^VHi( j407 143600tf ItitfEl40'. t{37s'. if 1 .d 2 '_4"18. 27'4@3 3341.-58. 41 192J8. 50851 :66

-1 -r- 44 41 l9L1 6 '. '46 ft6571461. ,4c9'1 13 e, 1 15619. 751 -7 713 C -e 424b

.'c.;,mui t-ll-l. 478>:1 tl. ~ *~'-~ Q6t . :}, ..... s 01 U 8 9409t 3. '- t 9-45 ; 1 2 - $ I 4 - b 2'' 4. 44346 934

247 9fll1LI 665i;4L34 f 1 4_ it. gSE:t J5. 1 16824.j_4, I [liI-.g, 4- 187, 9224. 2:91.094.. .31S3-.- 6f-. 505s 7T t02 445219 52 1i8" n.464f1 8_3440. 1 3 4. 2781444. 3 5 < q - " 44172258

j491110 9' 'P.i L; R' 32 4I P749. 41'355 F:535 11 1480 4545,0U. 2221635- 4 s 7 t 4 fn - I341 ' 42E. 554044. :'t ? 14 81 i56. 1222472 0. 16-.4"t4.9 21780 b

iu9e1 ttQ'I 2:b|I347. 1479- 348251. 4500187I'D. 12742534 3 244 4 1027258.e 136352t:-'4 174695540s4briii'' 2 4-flU 3 31460 , 416718. 533028. * 7 . 3499 1223190. 161`4 b'- 214194'0t.

O- 4¢,--*. 5, 4n - 40067 46S72. S 1531. 4V' 1148. 8I 7 09. 101f 80 12 1'-4. 1569'-f l3r4 "oX 5014=f E 57014 @,' "0tt7iE . 9'-! 4 4C'4, 4 1 40223. 146-477 2.^ - 1 c' 4234634.

0 0 c1-t~ 7i. 4781ti 88lr-. lO74t. 1?,---, 1S.'-.. 1 E.c|, 7 9 2 :24. 2 39.I c"S' 4. 3 8 3 471 ,-6

8 2 n4,1, I0, 24 I 9 661823 1 .. | 74 s 1 2 ')8 ,%436 6RI -. 3 . 724 t 06 6.166e 00 1 Br:.' . 21 924.. 281i 0 3t. . 94I 154. 5 879 L e 141 9. 7 2 I 1967 -

22tir,;,l,r0 26 1 . ' 1. 309" 84.4~ 4f.; e4J: C.4 >|AL^,i. 2 .4F! f 2 10 b 3_, 1 o,3:n3" 1 3 1 58831 'L

iwi''0 19'".14 2413'' 3fr4 . 4436 I eR- 9-'2- 2617;351', -8 l-}O 34 .wO=,6J 3i;c 7:: . . 4 fl r, 5 2 1 .7. 2 4n 33 11 1:4.-48. 14 545 . 178-! 717359¢ 8_:b, 8:S. 10144~ *_. -'f 11,-44R. 2W'IJ36. 2584'-96. 3299 e 42'0 -.

4 13i-0:. 61- ; 34 1541 U "' 10* 9 ,. 173e 5: 2210046. 280-403445 4 4I 1145r000 433714. ,5137411 6 3 4.S 1q10-' 0 .. 8:46. 13 ID5t6 j75'92 22539C'w6. 30211-R

1 5 CIO. 2f a 3. 1 4;r 1 b43 ;. _4 1: 9 14 -. 553 4 1 4 !. q581i 12f l_ * Z- -470 1 6 6 4 C, t 2176K6c1577000 34550134.0118.4302 5. 7 -1 51" 107i3958 3 65 1> 1769rL4

I2I C,iDO. 31000- 229C'3423,4- 2- 7 601. 12.t.

7cF:>.f;nn. lS50r461; 19260034. 4336717- S > 4194 2e. 329Q4i 469 3'O49. 19283554. 71615.6-s: 21(150l6r

( 1) Costs 0

(2)-(10)~~~~~~~272 BenefitIai4

Souirce: Mission

April 1977

ANNEX 6Table 5

COLOMBIA

SEVENTH HIGHWAY PROJECT

Rehabilitation Program

Economic Rate of Return Analysis

.... - LI .:. i. ... L .-....

10 YE I: 1 (:.i.IT R E hLiS 1 BE:NEF I V STRELf:-.A3

E F k TJ .. TOlTAL i:s:NEFI 1 Nt. 1 BENEF:IT

.t. 7 O h.OiO + ' * u .() -725530 S.0

2 C), 0v I. 65065 , 0O 165065 .0 *i

;:3 ;) (I N0 :L92603.* 0 192603+00

4 () o 00 233673 . O00 2:3?3673+ 00()

5 0 .) 9:L :L 43.00 291:1.43.00

C) 0 0 250649 i00 250649 .00

? *.i0+ 0() 4690` 92. `() 469092. 00

O 0,00 :597836+.00 597836 .00

9 0 *O0 759656 * 00 :75965,s.00

1.0 0. * 0005.16o31 *00 J. 051 631. o

!" ,iNT

'~~~F RETURN.

Source: Mission

April 1977

COLOMBIA ANNEX 6Table 6

SEVENTH HIGHWAY PROJECT

Mlaintenance Activities - '-'nit Coste

"Without" Projecrt Case

Unpaved Roads

No. Unit Activity Unit Costs (US$)-/financial economic

1I .9m pass Dry season grading: 59.95 47.96gravel roads - every 9,000 vehicle passesearth roads - every 10,000 vehicle passes

2 Km pass Wet season grading: 49.05 39.24gravel roads - every 7,000 vehicle passesearth roads - every 8,000 vehicle passes

3 Cu m Spot regravelling, washout and roadway repairs: 10.90 8.72gravel roads - replace 20% of gravel loss

but not more than 25 cu m/km/yearearth roads - replace 25 cu m/km/year

4 Cu m Gravel resurfacing: 5.45 4.36Gravel roads - resurface when thickness is

75 mm but not less than 6 years!resurfacing but not more than10 years/resurfacing to a restoredthickness of 150 mm

earth roads - no resurfacing executed

5 Km Routine maintenance: 163.50 130.80labor intensive activities such as

clearing drains, vegetationcontrol and shoulder repairs

?aved Roads

6 Sq m Patching: 4.36 3-4930% of unpatched cracks but not more than

500 sq m/km/year

7 Sq m Surface dressing: 1.09 0.8722 years after construction

3 Cu m Overlaying of asDhalt concrete pavements: 54.50 43.6033 years after constructionUsing asphalt paving of 50 mm

9 Km Rehabilitation of surface treated pavements: 92,650.00 74,120.0033 year after constructionUsing asphalt paving and structural

number of 4.0 2/

iO Km Routine maintenance:surface treated roads 272.50 218.00asphalt concrete roads 218.00 174.40labor intensive activities such as

clearing drains, vegetationcontrol and shoulder repairs

1/ Dec. 1975 USS, rate of exchange 1US$ = Col$33.00.'/ The structural number of the pavement is determined by the thic"ness and type

of pavement courses and the subgrade strength.

COLOMBIA

ANNEX 6SEVENTH HIGHWAY PROJECT Table 7

Maintenance Activities and U'nnit Costs

"With" Project Case

Unoaved Roads

No. ',nit Activity Unit Costs (CSS)-Ifinancial economic

1 Km pass Dry season grading: 47.96 38.37gravel roads - every 5,000 vehicle passesearth roads - every 6,000 vehizle passes

2 Km pass Wet season grading: 39.24 31.39gravel roads - every 3,0CO vehicle passesearth roads - every 4,000 vehicle passes

3 Cu m Spot regravellir.g, washout and roadway repairs: 8.72 6.98gravel roads - (Traffic less than 160 ADT)

replace 20% of gravel loss but rotnore than 50 cu m/km/year

- (Traffic greater than 160 ADT)reolace 30% of gravel loss but notmore than 75 cu m/km/year

earth roads - replace 75 cu m/km/year

4 Cu r Gravel resurfacing: 4.36 3.49gravel roads - (Traffic less than 160 ADT)

resurface when thickness is 75 mmbut not less than 4 years nor morethan 8 years/resurfacing to arestored thickness of 150 mm

- (Traffic greacer than 160 ADT)resurface when thickness is 75 mmbut not less than 3 years nor morechan 8 years/resurfacing to arestored thickness of 175 mm

earth roads - no resurfacing executed

5 Km Routine maintenance: 163.30 130.80labor intensive activities such as

clearing drains, vegetationcontrol and shoulder repairs

Paved Roads

6 Sq m Patching: 3.49 2.79o50% of unpatched cracks but not more than

700 sq m/Km/year

7 Sq m Surface dressinR: 0.87 0.70When cracking and patching exceeds 30%

3 Cu m Overlaying of asphalt concrete pavements: 54.50 43.60Wh.'n roughness exceeds 4,000 mm/kmUsing asphalt paving of 100 mm

9 Km Rehabilitation of surface treated pavements: 92,650.00 74,120.00Case 1 - *When roughness exceeds 4,0Y" mm/km

but not less than 22 years afterconstruction

Case 2 - When roughness exceeds 4,000 =m/kmusing asphalt paving and structuralnumber of 4.0 2/

10 Km Routine maintenance:surfarc treated roads 272.50 218.00asphalt zoncrete roads 218.00 17 .40labor intensive activities such as

clearing drains, vegetationcontrcl and shoulder repairs

1/ Dec. 1975 US$, rate of exchange !US$ = Col$33.00.2/ The structural number of the pavemert is determined by the thickness and type of pavement

courses and the subgrade strength.

AVEU- A.ERIL THICROES (8.( LON TTA LA/ ORHflHII IR OTL TET JR - OlIHIS

LL.. ~ ~ ROLIGF HOT0wC

TWFIC 10 R H.- - -1'

EEAEAAL 3.5 N 1)0-3)0 OHIO 10 H ON~~~~~~~~~~~~~~~~~~~~~C HERO 230 MV4 9126-

..C..O 000 ,4 5315 910 OAR 005 OR 050 5 200

100-3100 AVO 761,00 1 HE t,390 EVE 1,0746 EGO 994 II 256

________________________ OO0~~~~~~~~~~~~~L ~~ CV oA .O O3 11C NOR 87 ItS ___50__ - ON

A R A H 7.0 E _ _ _ _ _ _ _ _ _ _ _ _

EREROAR OREERIRERE 0....) 10 TO~~~~~~~~~~~~~~~~~~~~~~~~~790 I'l IT ,1 152 TO 1 1

ROERAE ETORIG RR 01SIROOLAl TO 0 IRAN (OT 100 (01 10. TI 2009 LEo)2 10 , 100 II01I.)01TOER(.IilE 2R00.

250R) ( T.1RR 15DTo 15 ZE T(30OR) M10 - 150 M 3 105

200-500 RFO7 453 NV V19 1VS O 3- VEIl 280 5 II "0I 43-

ERG0 7.00 Ii 000-EOTO OO0R 410 N? "1I 004 ROE, NO - A 042 34A 311 - R3T 3N

10E0-2)E PI Rl (O (R000 M9L 88VOVO4l 10 0,017 67 7801 4175 130 05

2000 SFIO 148 ~ ~- 506 OI ,RE O (WA 410 - 42

G TR L 0'.435 RO 1 347 01 CE2 -66 4,905 ~15V0 1,632 9IL lEO 1173-

-/G01W..A 3I0 No of ORARRRE 5,

SAoure: SOFA -0R,,

-OEV O97?

ANNEX 6COLOMBIA Table 9

SEVENTH HIGHWAY PROJECT

HIGdWAY MAINTENANCE PROGRAM

Economic Cost and Fretuencer of MaintenanceOperations Over Analysis Period

Unpaved Koaas

I i AVERAGE ANNUAL ECONOMIC AVERAGE ANNUAL MAINTENANCESURFACE LINK LENGTH FIRST YEAR I COST (THOUSAIND US$) OPERATIONS (PER KM)

_ TYPE NO0 K1 '1978) TOTAL PER KM NO. GRADINGS REGRAVEL (cu m)ADT W/O W W/O W W/o W W/O | W

-t >-. SMO1 85 30 44.7 50.8 0.52 0.62 ;1.6 4.6 63 78

SO 5y02 18 70 j 10.7 12.2 0.60 0.68 5.1 10 6 48 43

c3zM03 77 160 81.5! 117.6 1.06 1.52D 11.9 25.9 80 126

AVOI 205 30 130.5 140.5 0.63 0.69 1.6 4.6 85 100

AVQ2j 1,446 70 1.142.2 1.338.9 0.78 0.393 4 9 10.0 84 109

0 AV03 2 ,076 160 2.347.1 3.317.3 1.59 1.;9 1 11.8 25.4 96 142

AV04 1 ,005 350 1.772.0 2.829.4 1.77 2.81 25.7 55.3 104 198

LGOI 32- 70 317.8 371.9 0.99 1.16 5.2 11.2 126 157

LGv2 857 160 1.021.2 1.L-33.9 1.19 1.67 11.6 24.8 108 160

1,818 350 3.405.7 1.88 2.93 25.3~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~345. 18 129! Lb j L~~GC3 1 ,818 350 3.0. .333.-7 ,18 2.3 25.3 | 53.9 |129 i 34 !

| T 3 A L - 7,908 203 lO.273.4 L4.946.2 1.30 .s( 14.7 24.2 104 165

1 ESMI 356 30 144.1 272.5 0.40 1 0.76 i 1.4 3.4 2 25 7 5

, Ci no ESM2 238 160 187.9 313.3 0.79 .1.32 10.5 19.8 25 75

EAVI 243 30 96.9 186.9 0.40 J3.76 12.4 3.4 25 75

j j 1 3 3 ,EAV2 708 70 380.7 667.9 0.53 3.9& 4.5 8.6 25 75

m : °0 EAV3 V 1,746 160 1,375.2 2.291.2 0.79 1.31 10.4 19.7 25 75

EAV4 687 1 350 898.9 1.440.0 1.31 2.09 j5.a 43.2 25 7 5

ELG1 92 30 36.2 71.1 0.39 0.77 1.1 3.5 25 75ci~~~~~~~~~

'-q f ELG2 482 70 |26.0 433.2 I 0.53 0.94 i 4.5 8.4 25 75

ELG3 1 683 160 891.0 0.79 1 .31 10.3 1 19.2 5 75

Z I X ELG4 j ?29 350 ~~~~~~~952.3 1.510.7 1.31 2.CJ 7 22.4 41.9 25 7 51

-71 I i T 1 1 iTO I A L 1 5,964 172 j4.870.0 3.097.S 0.82 i 1.36 11.0 20.9 25 7 5 i

COLGIBIA

SEVENTH HI QIWAY PROJECT

Highway i4aintenance Program

Economic Cost and Frequency of MaintenanceOperation Over analysis Period

Paved Roads

AVERAGE ANNUAL ECONOMIIC AVERAGE ANNUAL M4AINTENAW(F SURFACE LINK LENGTII FIRST YEAR F VRG NULEOOI VRG NULM1T~AC 10 YEAR PROGRAM OPTYPE No. (198) COST (THOUSAND UsS) (Percent of Surface) OVERLAYS AND 1/

LIT TOTAL PEP KM -Patch it Seal REIABI ITATIONS_ - w1zir1~~~~~~~IVn W1/ w Wo /o w V/ _SF0b 34 150 62.4 295.2 1.83 8.68 4.3 3.0 9.9 9.9 0 34

SF07 453 350 1,339.3 3,275.9 2.96 7.23 9.3 2.5 8.5 3.3 0 389

SF08 918 750 4,193.1 5,689.2 4.57 6.20 17.0 5.7 J. 7 21.1 0 481

SF09 882 1,500 5,911.2 3,607.7 6.70 4.09 26.2 7.5 0 51.4 0 0J E,

ID SF10 148 3,000 1,271.7 1 401.1 8.60 9.47 33.5 9.1 7.2 45.5 0 107

TOTAL 2,435 1,075 12.777.7 14,269.1 5.24 5.86 20.1 6.0 4.2 30.1 0 1)011

g s C1oi 285 350 252.5 259.0 0.88 0.91 2.0 1.5 4.1 0 0 43

o . AC02 842 750 1,225.6 2,667.3 1.45 3,16 5.2 2.7 1.0 1.5 0 682 6|

o b AC03 2,247 1,500 3,575.0 4,451.2 1.59 1.99 5.6 2.5 1.3 2.5 0 930 o

ex ACo4 1,510 3,000 5,796.8 59312.1 3.84 3.51 15.4 3.0 0 7.8 0 1,210U)

TOTAL 4,884 1,767 0,849.9 12.689.6 2.22 2.60 8.4 2.6 1.0 3.8 0 2,865

1/ In the terminology of tlwe lIMD model, aaDhalt concr*teroads receive overlays and surface treated roads arerehabilitated.

Source: Mission

;.pril 1977

COLOMBI A

SEVEN'TIll IGHWIAY PROJECT

Typical Econontic Vehicle Operating Costs

(December 1975 C01,$per vehicle/kim)

1978 2/ 1988 3/

SURFACE TERRAIN CONDITION 1/ LI GT LIGHTLIIL TYPE TYPE VEHIC LE BUS TRUCK VEIIICLE BUS TRUCK

SM02 Gravel OND Bad-Fair 3.82 4.42 7.52 3.71 4.34 7.41

SM03 Gravel MONT Bad 4.43 5.39 8.83 4.34 5.32 8.73

AV03 Gravel OND Very Bad 3.82 4.44 7.65 3.69 4.36 7.52

AV03 Gravel MONT Fair 4.17 4.75 7.83 4.08 4.69 7.74

SF08 Sfce. Trtd. OND Good 3.23 4.32 6.96 2.84 4.13 6.53

SF08 Sfce. Trtd. MONT Good 3.87 5.09 7.62 3.38 4.86 7.11

AC03 Asphalt OND Good 2.30 3.83 5.91 2.30 3.83 5.91

AC03 Asphalt MONT Good 3.04 4.69 6.74 2.85 4.34 6.42

1/ present condition of road

2/ without project

3/ with project

OND: Ondulating terrain (flat to rolling)

MONTT Mountainous Terrain

Source: Mission

April 1977

ANNEX 6Table 12

COLOMBIA

SEVENTH HIGHWAY PROJECT

Vehicle Operating Costs Used in the Evaluation ofRoad Rehabilitation and Road Maintenance Programs

(December 1975 Col $ per vehicle-km)

LightVehicle Bus Truck

Road Rehabilitation Program 1/

Flat to Undulating terrain 3.41 4.13 5.55

Mountainous terrain 4.58 6.34 8.66

Highway Maintenance Program 2/

Flat to Undulating terrain 2.77 4.08 6.44

Mountainous terrain 3.46 4.89 7.18

1/ Table 16 of Main Report

2/ From Annex 6 Table 11

COLOMBIA ANNEX 6

SEVENTH HIGHWAY PROJECT Table 13

HIGHWAY MAINTENANCE PROGRAM

ECONOMIC ASSESSMENT(US$ Million)

PROGRAM IMPLEMENTED WITH LIMITED PROGRAM IMPLEMENTED WITH PLANNEDROAD REHABILITATION REHABILITATION WHEN IDEALLY REQUIRED

'i nf'1'1' l it .'1l IUlT IDLI.EN ALL

*tI1NT SUNMARY I mriPr PIMNARY

-- U A r A T .A P L f D A I A T A E -L

10 TYARS, I COST siRkAMS, I DINFrIT STRFAMS. 10 YEARs. I CMOT STREAMS, 1 PINEFIT STRGAMI:.

YEAR TQIAI COuI TOTAL DENII-1 NET IIENEFIT YEAR TOrAL COSr TOTAL- SNErIT NET DENrFir

1 16.9Y 7.41 -9.48 1 82.29 11.33 -70.96

2 11.64 33,90 22.26 2 36.17 69.22 33.05

3 20.92 50.26 27.34 3 37.16 112.28 75.12

4 15.45 78.71 63.46 4 18.40 166.33 147.93

5 3.3C 134.18 130.8 5 3.57 249.50 245.93

6 -6.91 181.16 118.07 6 -12.36 316.21 323.57

7 6.73 240.89 234,16 7 -0,79 407.01 407.80

a 6.52 307.93 301.41 a -7.22 511.67 519.09

9 2.15 422.48 420.33 9 -8.42 617.80 62m.22

10 2e.30 512.73 484.43 10 9.98 743.38 733.40

xT._OC J * ! EXEr. PV

INPUT - 00. SF INIEREST R! SCE. . INPUT-- NO. OF INTEREST RATES.

! 3 ! 3

1INPT4-- iTTEREST RATES. INPUT-- INTEREST RATES.

292.2,292.3,292.4, ! 117.74,117.76,117.78,

0t) 00

PRESENST VALUER-- ---- rATE(X) PRESENT VALUE-------RATECIT

0.01 292.20 0.02 117.740.00 292.30 -0.00 117.76

-0.00 292.40 -0.02 117.78

COIWl I CONT

! LXEC FUV I EXEC PV

INPUT-- NTO. OF IN1TEREST RATES. INPUT-- NO. OF INTEREST RATES.

-- ,-! 1 - T! I

INPUT-- INTEREST RATES. INPUT-- INTEREST RATES.

11 ! i1

G o0 I GO

PRESENT VALUE --- …----RATE (91 PRESENT VALUE -------…RATE(S)

920.75 11.00 1511.41 11.00

CONT CONT

ExEC PCT I EXEC BCR

!F'FUT-- (TO. Or IN7ErST RATTCY. INPUT-- NO. nF INTEREST PATES.

! I II

INTUT-- INTER'r!T RATES. INPUT - INTEREST RATES.

11 1 11

l/ C RAT ---------- RrI BC RTIO --- RES

13.71 11.10 11.09 11.00

So-rc; NHia.touAl il 19)7

COLOMBIA

SEVENTH HIGHWAY PROJECT

Truck Weight Control Program

Assessment of Effects

Road Road Frequency of Overlays Type of Cost ofTraffic Length (years) Overlay OverlayLevel in Network Without With (mm) (US$/Km)(ADT) (Km) Ideal Program Program

<500 772Negligible effect of weight control program 1/

500 - 1,000 1,760

1,000 - 2,000 3,240 10 5 9 50 25,000

>2,000 1,650 10 5 9 75 35,000

1/ This is because low traffic volumes, even though including overloaded trucks,do not generate large enough a number of standard equivalent axle repetitions tosignificantly affect the timing of overlays.

Source: Mission

April 1977

tDm

ANTNEX 6Table 15

COLO,BIA

SEVENTH HIGHWAY PROJECT

Truck Weight Control Program

Yearly Overlay Reouirements(Km)

Without Program With Program

1,000-2,000 ADT >2,000 ADT 1,000-2,000 ADT >62,000 ADT

0 650 330 650 330

2 650 330 415 210

3 650 330 415 210

3 650 330 405 200

4 650 330 405 200

5 650 330 380 190

6 650 330 380 190

7 650 330 380 190

8 650 330 360 180

9 650 330 360 180

10 650 330 360 180

Yearl' Costs (US$ million, Dec. 1976 value)

Investment and Overlay Investment-/ and OverlayOperating Overlay Operatin72/ Overiay

0 0 27.80 8.03 27.80

1 0 27.80 6.82 17.73

2 0 27.80 6.82 17.73

3 0 27.80 6.82 17.113

4 0 27.80 6.82 17.13

5 0 27.80 6.82 16.15

6 0 27.80 6.82 16.15

7 0 27.80 6.82 16.15

8 0 27.80 6.82 15.30

9 0 27.80 6.82 15.30

i0 0 27.80 6.82 15.30

I/ Fconom,ic costs, Pqtim;ted eonal to 82% of financial costs.

2/ Estimated at 85% of economic costs of the installation. Includespersonnel, including police staff, maintenance of equipment,buildings and other staticn areas, and administration.

Source: Mission

April 1977

ANŽ'EX 6Table 16

COLC'!IA

SEVENTH HIGHWAY PROJECT

Truck Weight Control Program

Economic Assessment

--11-2UrA h A TP L .. F-----

t t YFARS, t CoST STRE1AMMS 1. OENEFIT STREAMS.

YF AR TOlT2l. CQS;T TOTAL. BENEFIT NET BENEFIT

1. 9.03 0.00 -9.03

.2- 6 6.El2 tO.07 3.25

4- '; 6 .82 10.67 3.85

6'- 3 6 3S 1t.165 4.93

9-11 6 .8? 1t.50 5.6

I FXEC PR

.3*:**F.ATE (IF RETIHFN = 45.850 f/- 0.050 PFR'FENT*****

NnTF: CHFCK'.TNR T1-F -"0.000 rO 1t00.000 PERCENT RANGE(TN INCRFMFNrS OF 1-000 FPE--RCENT)--

THE RATI OF RETURN ABOYE IS UNIQUJE.

EXHYF' EQI

I'NFl-- NO. OF INTERFST RATES.

NF' !I - - TN'TFREST RATES.

t'

EF'-F NT VA! --E- ---- RAT F.

17.3'.. 11.00

Source: Mission

Apri! 1977

SEVENTH HIGHWAY PROJECT CRAUT C

-l:-TR OF -UELI WORKS AND TRANSPORTORGANIZATION CHART

(|~~~~ -J - -u -n r- -- -- -- r- -- ----- - -1

L RoFeS F 1w 4 1 I I

-4~~~~~~~~~~~~~~~E:

-4s, d IndN¢ [ L - < L

C C C C ,~~~~~C ' C C C C ' C C C CCC C C C C C C C~~~~~~~~~~~~~~ 'C C C C C '' C~~~~~~~~' C C C C- C'C Cw C C Cm C C ClLP

;(PLO. MB I A

SEVENTHl HIll;WAY PROJECi

ConsultitI Services and Technical Assisrance Programn

V ic hn I I

PannJng Unt

GeneralDirettorstes 1ICMMERCE & FINANCE |OPEATIONS| |IAO CONSTEIUCTION

j _, ,.CotractsDivisionis ommercia rstrit a 1r

Reorganization of Improve availability ImprCvE naintenanice Invenitory of Rehabilitation

Psorran stores and of equipment through programming and naturally occurring ProgramDescription purchasing Bystem. preventive rainte- utilization of equip- materials and for 978 km of

Trainiing of MOPT nance program., ment by training specifications fon trunk roads.personnel. Training of personnel. and seminars. roadworks.

1 I C It W A Y M A I N T E N A N C E P R O G R A M R E If A B I L I T A T I O N P ('(: R i AmPrresras Manayer 30 rn/m Transport Ecoi.omist 6 mn/m Coordinator 30 m/m

Professional I strr super. 3(tm/m 3 mec4anical I plaining cost 30m/m ConsultIrg cervices Consulting services

Services sspesrintendent I work snperin. 24m/m fron, local firms from 6 firms over

Rcquirements A storemen 60ni/m 2 asphalt maint.40m/m over 2 vears* 4 1/2 yeats

(toLa3 230 m/yrs)

90m/m rn6tm/m 94r/nt professional 25m/yr professional 180mlyr

|1 geolc List 2ism/ 6c

Stecial ROPT 2 superint, - 40m/m 6 mec'Lanieb 120W, civil 1ngineers - engI6 civil egineer/ Counterparts 6 trnt lO/ etnc-2)tn250m/nti 1 materials engineerICounterparts 6 stolem0el -1 !I)v/in i2 inspectors - 300mImg 24m1/ o 1

_2 inspectors - 30Gm | 4 technicians 24/a

I lr~~10)wu/mITo be financed by FONADE

Source: Mission

March 1977

COLDMBIA

SEVENTH HIGHWAY PROJECT

Project Imple.qtatio- Schedule

E V E N T 1 9 77 1 9 7 8 1979 1 9 8 0 1 9 8 1 REMARKSJ F M A M J J A S O N D J F M A M J J A S O 'tO D J M A M J J A S O N D J F MA M J J A S 0 N D J F M A M J J A S O N D

Reh bilitation ProHrm

Eat Batch 9 Sectic.- - St.bili.oti-o Workr a IC -pDtLodal biddingc T~ ompleted

5tIch: 10 Let - TttaElli4 310.6 km A I C compled I.C.B

3rd BRtch: 4 Lot. - Totallig 96.3 km B D I C pl -ed I.C.B./rd Batch: 4 Lot. - Ttallig 1532 kI A S c D mpleted I.C.B.% . xi ~~~~~~ 4completed5th Batch: 10 Lot. Totallilg 275.7 km A B c D D I.C.B.- --- --- - ~~~~~~~~~~~~~~~~~~~~~~8 ..completed6th Batch: 5 Lots - Totalling 142.3 A X| C X 5 complstd I.C.B.

Cottucti-n Superv.idon 6 Fir As B C C 4 D _D _ Local Co..ultanta

'tooedimatw for Rhabillt.tj.onpccgra_ amd C D Dlnae.e Stsdy _ - A + -I------- C -- i D _ D I-L4 IL oeg/on

IIwmtgLoey of Natarally Occurring R*Ad-!aterital A+B C D D Iomade financed

Vehicle 5JeEiat, Control Prerm

Studi.., D.-i-. amd Civil Worka Phe I tsd II tesiun a IIj

iiwipNnt Inot.lltion A- ,l B. D ^ E ICBaIdC.B..

CoagEWructEomRiin l S .p iiBrtor 3 firm - A B _C V Local Co-.Glt ta

Road laimismance Progarm

Zattnalomd to Storee and Wcrk.hcpI A B C D locl biddiog

Spare PartE. Pro-reent A B a C p I L -l h....

Eqvipment Poc-mt A X I X I A ID I E D ICB.

Tech.ical AiE.tamce: A B ICI Con.ultaot.

ProgRam Xeaaa_ r . D + E ________________D EForeEigr/Locs1

Traasport Es.c.oAt 0 D F ,nreign/LocAl

Spers.WJrehod.ing Puch.ijg D D + E D_Ml D D+E a t poreisnlLocsl

Mecfsmic.1l Engieer. tD + E IFr-tge/Lo.a.

Road Maintenmace Pro.gxreiog 6 Cuetio1 D + E __ Foreige/Loca1

Road Maimtemamce OperatiomD. Foreign/Loc-lPropo.ed BRnk Misi.oeJ Ecomomt t * * * * * * * * (27 -na-weeks)

Enginert * * * 0 * * * * (27 man-eks)

Co.nultamte (Machanlcal) * * (16 oem-weeks)_______________ J F M A M J J A DS ONl J F M A M J J A S O N D J F M A M J J A S O ND J r M A M J J A S O I A D J F M A M J J A S OND_

LEIGEND:

A - Preparatiom cod Prequalifioctio. B - Bidding Period C - Bt1 evaluation amd Mobilioation

D - Implement-tion E - Training

X - World bRnk Approvals

.Esrce Mission

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