Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 2011b-BO

HL~ W3PY

STAFF APPRAISAL REPORT

HIGHWAY MAINTENANCE PROJECT

BOLIVIA

May 18, 1978

Projects DepartmentLatin America and the Caribbean Regional Office

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

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Currency Equivalents

1 Bolivian Peso (b$) = US$0.25, divided into 100 centsUS$1.00 = b$ 20.001 million b$ = US$50,000

Fiscal Year

January 1 to December 31

Units of Weight and Measures: Metric

Metric British/US Equivalent

1 kilometer (km) = 0.62 mile (mi)1 meter (m) = 3.28 feet (ft)1 kilogram (kg) = 2.20 pounds (lb)1 ton = 2,205 pounds

Abbreviations

ADT Average Daily TrafficCAF Andean Development CorporationCOMIBOL Bolivian Mining CorporationCONEPLAN National Economy and Planning CouncilENFE The Bolivian National RailwaysFHA Federal Highway AdministrationHDM Model Highway Design and Maintenance Standards ModelIDB Inter-American Development BankLAB Bolivian Airways LineMTCCA Ministry of Transport, Communication and Civil AeronauticsNTS National Transport SurveyOD Survey Origin and Destination SurveySNC The National Highway ServiceUNDP United Nations Development ProgramUSAID United States Agency for International DevelopmentYPFB Yacimientos Petroliferos Fiscales Bolivianos

Link Acronyms used.in the HDM Model are explained in Table 3.2, Page 4.

FOR OFXIIAL UU ONLY

STAFF APPRAISAL REPORT

HIGHWAY MAINTENANCE PROJECT

BOLIVIA

TABLE OF CONTENTS

Page No.

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

A. General *.*..*...*..*..*..*..**.....*..*............... .*...... . .-. 0.. IB. The Transport System ... .. ...o. ........ .... .... 2C. The Development Plan .. o ....... .. .. .... ... o ... . 5D. Transport Planning and Coordination .... ...... 7

II. THE HIGHWAY SUBSECTOR ... o ..... . ... . .o.o. ......... . 8

A . The Highway Network . .. ...... . ...... .. .... . 8B. Characteristics and Growth of Road Traffic

and Regulations .. ... ... ..... .. .... . ... ... 9C. Highway Administration, Organization and

Training ... oo . .. ........ ............. 11D. Highway Planning and Engineering ... o .....o ..... 12E. Highway Construction o........*..ooo....... 13F. Highway Financing and Road User Charges .... o... 14G. Highway Maintenance ....... o.o ......... .... ..... 15

III. THE PROPOSED PROJECT ..o ....... o ... .oooo ........ . 17

A. Project Development and Preparation ..ooo.... .... 17B. Objectives and General Description .. ...... oo. 18C. The Four-Year Maintenance Program ... .......... 19D. Equipment . .... ... o..o ......... .. .... . ..... . 21E. Workshops and Spare Parts ......*.oo ....... ooo.. 22F. Tools and Equipment for Labor-Intensive

Maintenance Activities .... ......... o ..... 22G. Training ... oo........................... 22H. Technical Assistance .............. ............. 24I. Preparation of Road Rehabilitation and

Upgrading Program ........... .... o... 24J. Cost Estimates and Financing ...oo..o ....... ... 25K. Execution, Procurement and Monitoring .. o. .... 28L. Impact and Adequacy of Technology .. ............ 29M. Project Risk ooo..o..o ......... .o. o ....... . . 29

This report is based on the findings of an appraisal mission which visitedBolivia during November-December 1977. The mission comprised Messrs. C.-H.Mume (economist) and S. Miquel (engineer). The report has been edited byMiss V.R. Foster.

Thi document has a mtrictd distribution and nuy be used by recipients only in te performanceof their official duties. Its contents may not otherwise be dinclosd without World lak authorization.

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TABLE OF CONTENTS (Continued)Page No.

IV. ECONOMIC EVALUATION ......... . . . . .................................. . 30

A. General ........................................ 30B. Analysis Network ............................... 31C. Maintenance Activities and Unit Costs .......... 31D. Traffic .................................................... 31E. Benefits ................................................... 31F. Economic Assessment . .......................... . 32G. Distribution of Benefits .................... .. 33

V. AGREEMENTS REACHED AND RECOMMENDATION ................ 33

TABLES

1.1 - Freight Transported by Different Modes .... .......... 362.1 - Bolivian Road Network ................................ 372.2 - Road Density in Geographic Regions Related to

Area and Population ............................... 382.3 - Motor Vehicle Fleet 1967-1974 ..... .................. 392.4 - Distribution of Vehicles in the Different Departments

and Geographic Regions ............................ 402.5 - Gasoline and Diesel Fuel Consumption 1967-1976 ...... 412.6 - Average Daily Traffic (ADT) and Composition of

Traffic in the Three Project Districts ........... 422.7 - Vehicle Dimensions and Weights ...................... 432.8 - Personnel of the Servicio Nacional de Caminos (1977) 442.9 - Geometric Design Norms for Highways .... ............. 452.10 - Highway Expenditures and Funding (1971-1976) ........ 462.11 - Road User Charges (1971-1976) ..0 .. .................. 472.12 - Road Maintenance Program 1976 ....... ................. 482.13 - SNC Maintenance Equipment and Vehicles Age and

Condition ......................................... 493.1 - Representative Links and ADT 1976 in the

Three Districts ................................... 503.2 - Analytical Network Inventory (4 pages) .... .......... 51-543.3 - Maintenance Unit Costs and Cost Adjustment Factors .. 553.4 - Vehicle Characteristics and Costs .... ............... 563.5 - Economic Vehicle Operating Costs with Project for

1982 for Selected Links ... .... 573.6 - Four-Year Maintenance Program in the Three Project

Districts (2 pages) ...... ......................... 58-593.7 - "Without" Project Road Maintenance Standards ........ 603.8 - "With" Project Road Maintenance Standards ........... 613.9 - Maintenance Equipment and Vehicles Age and Condition

in the Three Districts ..... ....................... 623.10 - Equipment, Spare Parts, Tools and Others to be

Purchased under Project for the Three Districts ... 633.11 - Estimates of Budgetary Requirements for Road

Maintenance Program (July 1, 1979-June 30, 1983) 643.12 - Estimated Schedule of Disbursements .... ............. 653.13 - Project Implementation Schedule ..... ................ 66

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TABLE OF CONTENTS (Continued)

TABLES (Continued)

4.1 - Economic Maintenance and User Costs "With" and

"Without" Project .................................................. 67

4.2 - Project Summary of Economic Analysis (3 pages) ...... 68-70

4.3 - Sensitivity Tests, Benefit-Cost Ratios and

Net Present Values ......... ......... .. ........... 71

ANNEXES

1 - The Proposed Four-Year Highway Maintenance Program

(July 1, 1979-June 30, 1983) ...................... 72

2 - Maintenance Equipment for the Highway MaintenanceProgram ........................................... 74

3 - Outline Terms of Reference for the TechnicalAssistance on Highway Maintenance ................. 78

4 - Selected Documents and Data Available in the

Project File ................................................... 86

CHARTS

I - Organization Chart of the Ministry of Transport,

Communications, and Civil Aeronautics .... ......... 88

II - Average Daily Traffic 1976 .......................... 89

III - Organization Chart of the National Highway Service .. 90

MAP

IBRD 11455R3 - Railway and Road Systems

Messrs. Sologuren (engineer) with the Bolivian SNC, B. Brademeyer (systems

analyst) with MIT, P.E. Fossberg (engineering adviser) and T. Watanatada

(economist/systems analyst) with CPS and R. Mott and K.S. Ohbi (consultants)

provided assistance with the HDM model analyses of the proposed highway

maintenance project. Evaluation of Highway Roughness in Bolivia was done by

the Texas Research and Development Foundation.

I. THE TRANSPORT SECTOR

A. General

1.01 Bolivia has an area of 1.1 million km2 and a population of 5 million;it is the least densely populated country in Latin America. The population isunevenly distributed within the three distinct geographical regions of thecountry: 47% live in the highlands which represent 16% of the country's area,33% live in the valleys which cover 20% of the area, while only 20% live inthe lowlands with 64% of the country s area.

1.02 The highlands (Altiplano) of Bolivia consist of the two major Andeanchains, with peaks rising to 6,500 meters, and the plateau, which lies at amean elevation of about 3,700 meters. Vegetation is sparse, but it supportsa pastoral economy which, together with subsistence farming, provides theprimary basis for the livelihood of the population. The highlands containmineral deposits which are the basis for the major economic activity. Somemanufacturing and processing have developed in major cities such as La Paz,Oruro, and Potosi. La Paz is the leading industrial and commercial center ofthe highlands and of Bolivia. Activities of Oruro and Potosi are primarilyassociated with the mining industry.

1.03 The valleys (Yungas) lie between the eastern mountain chain of thehighlands and the lowlands of northern and eastern Bolivia. The terrain isgenerally rugged, but a few broad valleys are found where economic activitiesbased on agriculture and livestock have developed. A great variety of cropsare grown, reflecting the wide range of climatic conditions. In the CochabambaValley, there is considerable light industry.

1.04 The tropical and subtropical lowlands (Llanos) extend from thefoothills of the Eastern Cordillera to the Brazilian frontier to the North andEast, and to the borders of Paraguay and Argentina to the Southeast and South.The northern lowlands are drained by tributaries of the Amazon River; thesouthern lowlands by those of the Paraguay River. Agricultural production,characterized by commercial crops such as sugar, rice, cotton, corn, andtropical fruits, is concentrated in the area around Santa Cruz, the capitalof this rapidly growing region. The livestock industry is also important,particularly in the Santa Cruz and Beni areas. There are dense tropical.forests, which are exploited only to a limited extent. The petroleum industryis a major factor in the economy of this region. Some manufacturing indus-tries have developed in the city of Santa Cruz. The Government is determinedto develop the lowlands in order to realize their rich agricultural potentialand to relieve population pressure in the Altiplano.

1.05 Initial development of the Bolivian transport system was based onrailways and was oriented to serve mining operations and their export needs.The road network was developed later to serve mostly domestic transport andcommunication. Air transportation, which has grown rapidly in the last

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10 years, services long-distance passenger traffic and gives access to exten--ve isolated areas. The principal river routes in Bolivia, the Ichilo-Mamore

and the Beni, are a means of supplying the vast areas in the North andNortheast, and Lake Titicaca serves as a navigable link with the southern Perurailway and the Pacific ports of Matarani and Mollendo. Pipelines weredeveloped over the last two decades to serve the petroleum industry.

1.06 Bolivia's transportation infrastructure is still in a formativestage. The major transport modes have played, by and large, complementaryroles to meet specific requirements: railways, to haul most of Bolivia'sexport trade of bulky mineral products; domestic aviation, to transport passen-gers and perishable goods, particularly beef; highways, to carry mostlydomestic freight and passengers; and waterways, to provide access to otherwiseisolated towns and villages in the lowlands. The provision of adequate trans-portation is further complicated by low traffic densities. The exceptionallydifficult topography and the long distances between scattered populationcenters account for the relatively high cost of transport services and infra-structure, necessitating careful analysis and planning of modal allocationand investments.

1.07 Except for pipelines, the most important transport services in thecountry, as measured in ton-km, are performed by road and rail. The relation-ship between those services and water and air transport changed slightly from1967 to 1974, with roads and aviation increasing their relative contributions.Apart from the specialized role of pipeline transport, road transport accountsfor 65% of the remaining transport effort as compared to 28% for the railwaysand small contributions by river, lake and air transport (about 2% each)(Table 1.1). Between 1966 and 1976, freight traffic, measured in ton-km, grewmost in aviation (15% per year), river freight had the next largest growth(12% per year), highway freight increased by 12% per year, rail freight grewby 7% per year, while lake freight remained stationary. Traffic data areincomplete, particularly for intercity road transport, although road transportis the dominant mode for passengers. In 1975, intercity passenger transportby railway totaled about 135,000 passengers, while domestic air transportaccounted for about 450,000 passengers. Passenger traffic has been growingat rates between 5% and 10% over the last ten years.

B. The Transport System

1.08 Most of the country is accessible by only one transport mode. Topo-graphy and the condition of existing transport infrastructure place seriousrestrictions on the vehicles that can be used, i.e., 5-6 ton trucks on mostroads, 25-40 ton barges on the rivers, turbo-propeller aircraft of 5 tonspayload at most airports and relatively short trains. The main features of

the transport modes are discussed below.

(i) Railways

1.09 Except for petroleum and natural gas, the Bolivian economy reliesprimarily on the railway system to carry its external trade. The system

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consists of about 3,400 km of meter gauge railway line (Map IBRD 11455R3).The only line not operated by ENFE is that from Machacamarca to Uncia (105 km),which is operated by COMIBOL, a Government-owned mining enterprise. The rail-ways consist of two separate systems, the Western and the Eastern Systems,which are linked only by a long indirect route through Argentina. Between1966 and 1976, railway traffic grew regularly at an average rate of about 6%per year for passenger services and 7% per year for freight, with particularlyrapid growth on the Eastern System. According to Bank projections, freighttraffic is expected to continue to expand at the average rate of about 4% peryear on the Western System and at 9% per year on the Eastern System, andpassenger traffic by 4% per year on the Western System and 10% per year onthe Eastern System.

1.10 The Western System was built between 1870 and 1920, largely to servethe needs of the mining industry to transport mineral products to the ports onthe Pacific Coast. The system consists of about 2,100 km of railway lines,linking the main towns in the southwestern part of the country and providingaccess to the ports of Matarani and Mollendo in Peru, Arica and Antofagastain Chile, and (via Villazon) to the ports in Argentina. About 80% of thefreight traffic on the Western System consists of traffic for external trade.

1.11 The Eastern System, which was built during the 1950s, consists oftwo major lines totaling about 1,180 km. The Santa Cruz-Corumba line (643 km)connects with the Brazilian system, and the Santa Cruz-Yacuiba line (539 km)connects with the Argentine system. The railways are the most significantmode of surface transport in Eastern Bolivia, where most of the agriculturalexports, such as cotton, timber and sugar, originate. About 90% of the trafficon the Eastern System consists of traffic for external trade.

1.12 In accordance with a 1967 agreement between the Governments ofArgentina and Bolivia, an extension to the Eastern System, from Santa Cruz tothe north, is being built by an Argentina-Bolivian Joint Commission. To date,a stretch of 104 km between Santa Cruz and Santa Rosa has been built andtransferred to ENFE. The two Governments recently decided to phase out theJoint Commission when the line reaches Yapacani. The Government has agreed,under the framework of the Third Railway Project, that further extension ofthe line beyond Yapacani would not be undertaken without a study of itseconomic justification. The same applies to the project for the interconnec-tion of the Eastern and Western Systems, which is now the object of preliminarystudies.

1.13 Since 1972, the Bank Group has contributed to three rehabilitationand modernization projects for the Bolivian railway system. The First and SecondRailway Projects (Credit 346-BO, US$8 million, December 1972 and Loan 1121-BO,US$32 million, June 1975) consist of rehabilitation and modernization of track,rolling stock, motive power and workshops and technical assistance. The FirstRailway Project has been completed satisfactorily, and implementation of theSecond Railway Project shows good results. The Third Railway Project (Loan1422-BO, US$35 million, June 1977) includes the continuation of the rehabilita-tion of track, telecommunications, rolling stock and workshops and a programfor technical assistance. This project also includes a National TransportSurvey (NTS) and provides advance technical assistance to highway maintenance(para 2.31).

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(ii) Highways

1.14 The highway subsector is reviewed in detail in Chapter II.

(iii) Waterways

1.15 The river transport system is made up of an extensive network ofinland waterways located in the eastern and northern parts of Bolivia, measur-ing about 1,600 km. The system consists of five main waterways, as shown onMap 11455R2. The most important river port is Puerto Villarroel, connectedby road to Cochabamba. The Mamore and Beni river systems, although part ofthe Amazon basin, are isolated from the Amazon system by rapids. River naviga-tion, although a low cost service, has inherent limitations due to seasonalvariations in water level. The rivers represent the only available surfacetransport mode in these underpopulated areas. As such, they perform a vitalfunction, even though the quantities moved are relatively small (Table 1.1).

1.16 Lake Titicaca, the highest navigable lake in the world, supportsdomestic and external transport. Its primary function is that of an alter-native transport corridor to seaports of Matarani and Mollendo through thePeruvian lake port of Puno. In terms of ton-km of freight traffic, laketraffic is more important than river traffic (Table 1.1).

(iv) Aviation

1.17 Air transport is a vital means of communication, despite its rela-tively high cost, and is likely to remain so for a long time because of thetopography and low population density of the country. There are approximately300 airports in the country, but only 30 have scheduled service provided byLloyd Aereo Boliviano (LAB), the Government-owned airline. Airports at thefour major cities -- La Paz, Cochabamba, Santa Cruz and Trinidad -- accountfor more than 80% of the regular passenger and 70% of the cargo traffic.Virtually all other airports are in poor condition and can accept only smallpropeller-driven aircraft. During the wet season, several of these airportsare closed for considerable periods because of flooding and other hazardousconditions. Chartered cargo service is provided by several private operators,who are normally engaged in the transport of meat from the Department of Benito La Paz and other cities in the Altiplano.

1.18 Demand for air transport has increased rapidly in the recent past.The number of passengers using LAB's scheduled domestic flights increasedat a rate of 15% per year during the past five years; this was made possibleby the introduction by LAB of modern jet aircraft with higher passengercapacities. The volume of chartered domestic air cargo, on the other hand,did not increase appreciably during the same period because of severe aircraftlimitations and the continued vulnerability of many airports to poor weatherconditions. The main objective of the Bank's Aviation Development Project(Loan 1423-BO, US$25 million, June 1977) is to facilitate growth in domestic

air transport by adding two airports for jet aircraft in Riberalta and Tarijaand two smaller all-weather airports for turbo-prop aircraft in San Borja andSanta Ana.

(v) Pipelines

1.19 The state oil company operates 2,462 km of oil pipelines and 754 kmof gas pipelines. The oil pipelines allow access from the major productionfields near Santa Cruz to the Pacific seaport of Arica and to the Argentineborder. The Bank-financed natural gas pipeline (Loan 635-BO, US$23.25 million,July 1969) conveys gas to Argentina. Depending on the success of intensiveexploration efforts now under way and the confirmation of identified reserves,significant new pipeline construction, especially to Brazil, may be undertaken.

(vi) External Trade Routes

1.20 Bolivia's centers of activity are remote from the sea: La Paz islocated 500 km from Arica and 1,200 km from Antofagasta. Santa Cruz, in theeastern part of the country, is 2,500 km from Santos in Brazil. Bolivia reliesheavily on exports and imports for the development of its economy, and theprovision of reliable external trade routes assumes a particular importancefor its development. The main exports are minerals via Peru and Chile, crudeoil to Argentina and Chile, gas to Argentina, and agricultural commodities,especially cotton and wood, to Argentina and to Brazil. Recently, major sugarexports to Chile also took place. Imports are mainly wheat and flour fromArgentina and, via Peru and Chile, iron and steel, mechanical equipment,vehicles and other durable goods. The principal ports which serve Bolivia arethose of Antofagasta and Arica in Chile, Matarani and Mollendo in Peru and, toa lesser extent, Rosario in Argentina and Santos in Brazil.

1.21 Bolivia has sought to link its transport network with those of neigh-boring countries and to diversify and modernize the various access routes tothe Atlantic or the Pacific Oceans. It has relied mostly on railways toprovide reliable connections with neighboring countries and access to oceanoutlets. This situation would persist in the future while road transport maygradually play a more important role, especially with respect to regional trade.At present, there are no highways competitive to the La Paz-Arica and Oruro-Antofagasta railways, but some international freight is carried by truck overlow standard roads to Arica. Although there is a railway connection fromLa Paz via Lake Titicaca to the Peruvian ports of Matarani and Mollendo, mostof the freight to and from these two ports is carried by more competitivetrucks. Some additional international traffic is carried by truck over lowstandard roads through Villazon in the West into Argentina, whereas there isalmost no competition for the Santa Cruz-Yacuiba railway because of the verypoor condition of the roads in the southeastern region. There is no alterna-tive road for the Santa Cruz-Corumba railway.

C. The Development Plan

1.22 The Government's present Five-Year Plan for Economic and SocialDevelopment (1976-1980) includes, as major goals, the expansion of the main

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-xport sectors -- hydrocarbons, minerals, agriculture and agro-industries --__ order to break the foreign exchange constraint to development. The planrecognizes that infrastructure such as transport and communications is basicto the country's development, and it is given high priority. The latestEconomic Memorandum on Bolivia (March 23, 1977) concurs with this view.

1.23 The Government's main transport strategy underlying its Five-YearPlan can be summarized as follows:

(a) establish a comprehensive transportation system that achievesdomestic integration of the country and adequate internationallinks;

(b) continue rehabilitation and modernization of the rail system;

(c) extend and improve the road network to serve high prioritysectors in the economy and to provide rural communities withbetter access to markets and services;

(d) develop air transport through an upgraded and modernizedaviation infrastructure, particularly in the north andnortheast;

(e) improve the river transport system to assist the social andeconomic integration of the northeastern region and improvelake fleet and facilities on Lake Titicaca; and

(f) achieve an efficient operation of each transport mode in sucha way that costs are low and services satisfy the demand.

1.24 This strategy, which covers long-term objectives, would have to betranslated into specific programs and policies. This was only partly achievedby the current Five-Year Plan (1976-1980), which was mostly a list of perceivedinvestment requirements. The Five-Year Plan calls for investments, in projectsalready started, of about US$475 million, excluding pipelines: 56% for high-ways, 23% for railways, and 21% for aviation. In addition to these projectsalready under way, the Government has under study some US$440 million in possi-ble projects. The Five-Year Plan does not include capital investment forwaterways, which are relatively minor. This may be compared to total publicsector investment of US$2.4 billion, or almost 20%. Many of the projectsincluded in the 1976-1980 Plan, however, are merely listed, with little orno attempt to assign economic priorities or to determine their sectoral andregional impact on the country's development. The Plan (except for railways)addresses itself primarily to new construction, but, at present, the Govern-ment gives added emphasis to maintenance and rehabilitation of the existinginfrastructure, particularly roads. Although the targets of the current Planare, in some respects, over-ambitious, it is clear that Bolivia needs, in thefuture, large investments in transport. The NTS (paras 1.28 and 1.29) wouldanswer the need for improved sector planning and coordination.

D. Transport Planning and Coordination

1.25 The Ministry of Transport, Communications and Civil Aeronautics(MTCCA) is responsible for formulating, directing and executing policy inthe transport sector. The investment proposals of MTCCA are reviewed by

the National Economy and Planning Council (CONEPLAN) to determine the levelof investments in light of national priorities. Four of the five transportmodes are fully under the jurisdiction of MTCCA (Chart I): highways, rail-ways, aviation, and waterways. Pipelines are under the jurisdiction ofYacimientos Petroliferos Fiscales Bolivianos (YPFB) which, in turn, reports

to the Ministry of Energy and Hydrocarbons. The organizational setup forplanning and coordination is basically sound, but needs strengthening.

1.26 Important issues related to transport planning and coordination inBolivia need attention. As an example, Bolivia is likely to have to construct

and improve a substantial number of roads. This program, which may well costseveral hundred million dollars, must be carefully defined and evaluatedagainst the alternatives offered by the other transport modes. The Governmentof Bolivia is considering the eventual construction of a highway betweenSanta Cruz and Corumba (Brazilian border), practically parallel to the exist-ing railway between those points. The high cost of constructing such a high-way (about US$125 million) and the possibility that this highway is unlikelyto generate substantial traffic, but, rather, might divert it from the railway,requires a careful economic study. In view of the possible uneconomic dupli-cation of investments, the Government has agreed not to proceed with the con-struction of this highway (Loan 1422-BO) until it has carried out an adequate

study to determine its economic justification.

1.27 Transport planning and coordination in Bolivia have historicallybeen weak. In recognition of this deficiency, a transport study financed byUNDP, with the Bank acting as Executing Agency, was completed in 1969. Itproposed a program for integrated transport development over the followingten years. Most of the projects recommended by the study have been startedor are included in the 1976-1980 Development Plan. One of the main recommen-dations of the 1969 transport study was the creation of a Directorate ofPlanning and Coordination. The Directorate was created and, for a time, was

attached to the Ministry of Coordination and Planning, but is now in MTCCA.In 1972, the Government prepared terms of reference for a UNDP-financedtechnical assistance program to strengthen the Directorate. The program was

canceled in 1976, after partial implementation, because of the lack of UNDPfunds.

1.28 At present, the gap in knowledge regarding transport facilities and

equipment, their condition, their age and their ability to meet expecteddemands is serious. Although individual project studies have been undertaken,

there has been no sufficient coordination among them. The Government hasdecided to undertake an NTS, to be carried out by the Directorate of Planning

and Coordination with assistance of consultants. The NTS would provide thenecessary basis to plan further development of the transport infrastructure

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and also to define and introduce improved policies concerning sector management.In the fields of highway and road transport, the NTS would, inter alia, reviewthe following matters and recommend necessary improvements: structure andcollection of road user charges, adequacy of axle load limitations and theirenforcement, structure of the road transport industry, and the ban on vehicleimports. Phase I of the NTS would involve the preparation of a comprehensivereport on transport development and policies, followed by a two-year technicalassistance program (Phase II) for implementation of major policy recommenda-tions (para 2.17).

1.29 The NTS, financed partly under Bank Loan 1422-BO (US$1.5 million)and partly by a UNDP grant of US$250,000 for which the Bank is executingagency, was to start in early 1978. The Bank had already proceeded with theselection of consultants and initiated contract negotiations. At the beginningof December 1977, the Bolivian Government, following the replacement of theMinister of TCCA, informed the Bank of its intention to postpone the startingdate of the NTS. The main reasons indicated for the postponement were thetight public budget for 1978, the lack of adequate counterparts and, mostimportantly, possible interference of the election campaign activities withdata collection in the field. In April 1978, the Government informed the Bankthat the NTS would be started in July 1978. Therefore, Phase I would be com-pleted by December 31, 1979, and Phase II would be carried out over the periodJanuary 1, 1980 to December 31, 1981.

II. THE HIGHWAY SUBSECTOR

A. The Highway Network

2.01 Bolivia has a road network, totaling about 38,000 km, underthe jurisdiction of the National Highway Service (Servicio Nacional deCaminos - SNC); about 14% are primary roads, 10% secondary roads, and 76%tertiary roads. Only 3% (1,200 km) are paved, 18% (6,800 km) are gravelsurfaced, and the remainder 79% (30,000 km) are earth roads (Table 2.1).The network follows the rather uneven population distribution in the threegeographical regions of the country (para 1.01). The highlands comprise 50%of the roads, the valleys 34% and the lowlands 16% (Table 2.2). The roadsystem was expanded considerably during the sixties; total length of roadsincreased about 4% annually over the period 1965-1971. Since 1971, theexpansion has continued at about 1% per year, while an increasing share ofroad investments was directed at upgrading of existing roads (Table 2.1).

2.02 The network of the southwestern region of the country, correspondingmostly to the highlands, is rather well integrated, connecting main cities(La Paz, Oruro, Potosi) among themselves as well as with the populated areaaround Lake Titicaca, and with the valleys to the north and east. Its southernbranch extends to Argentina, and its eastern branch leads through Cochabamba

into the lowlands of Santa Cruz. The rest of the network is composed of lessdeveloped branches stretching through the valleys and into the lowlands, oftenlacking adequate connections with each other (Map 11455R2).

2.03 Despite considerable investment undertaken over the last ten years,Bolivia's highway network is still in its formative stage. Coverage is incom-plete, and most of the roads, including primary links, have low standards andare generally in poor condition. Only a fifth of the primary roads are paved,mostly surface treated; some of the gravel and earth roads, even within theprimary system, are underdesigned for their present volume of traffic and donot receive adequate maintenance. Moreover, gravel roads have, in general,high roughness caused by the use of unscreened gravel. Earth roads are, toa great extent, unimproved, lacking adequate drainage, and are, therefore,frequently interrupted during the rainy season.

2.04 To serve the country's needs more efficiently, the present networkrequires added emphasis on maintenance and rehabilitation, as well as construc-tion of new roads and upgrading of existing ones. The primary network shouldbe consolidated in the highlands and valleys and extended into the northernlowlands to achieve a development similar to that already obtained aroundSanta Cruz, leaving long-distance, mainly international, connections mostlyto the railroad system. The secondary and tertiary road networks should beextended and developed into a more efficient auxiliary road system to feed notonly the primary network, but also the railroads, river ports and airports.

2.05 The next phase of development of Bolivia's highway system would haveto rest on a broad-based planning effort consisting of a detailed analysis offuture transport demand and development objectives in the primary and secondarysectors. The NTS would provide the necessary basis to develop a coherenthighway master plan and a well-balanced highway program covering upgrading andstrengthening of primary roads, construction and improvement of secondary andtertiary roads and improved maintenance. The proposed project would initiatethe improvement and buildup of maintenance capacity in the three key districtsof La Paz, Cochabamba and Santa Cruz and would set the stage for further buildupof maintenance capacity as well as a program of high priority rehabilitationand upgrading projects be selected on the basis of the NTS.

B. Characteristics and Growth of Road Traffic and Regulations

2.06 Road transport has expanded rapidly in recent years, and the totalvehicle fleet increased by 9% per year from 1970 to 1975, reaching about70,000 vehicles. Of these, 70% are light vehicles, 25% trucks and 5% buses(Table 2.3). The regional distribution of the vehicle fleet is consistentwith the pattern of economic activity; 42% of the fleet is concentrated inthe Department of La Paz, and 20% each in the Departments of Cochabamba andSanta Cruz (Table 2.4). These three Departments contain about two-thirdsof the country's population, and they account for about 70% of the grossdomestic product and 90% of the industrial output. Countrywide consumption ofgasoline showed average increases of 7%, and diesel oil of 15% per year overthe period 1970 to 1976 (Table 2.5).

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07 SNC has been carrying out traffic counts and keeping statisticssince 1969, based on 20 permanent stations with pneumatic traffic countersand about 120 temporary stations where manual counts are taken during sevendays, four times a year. Traffic levels have risen rapidly in Bolivia inrecent years, although from relatively low absolute levels. Representativedata concerning average daily traffic (ADT) suggest average growth of about9% per year for the last five-year period. Only a few highway sections haveADT of over 1,000 vehicles, namely the outskirts of La Paz, Cochabamba andSanta Cruz. Away from the major cities, the ADT in these three districtsaveraged about 750 for paved roads, about 60 for gravel roads, and about 17for earth roads in 1977 (Table 2.6 and Chart II). Interurban traffic ischaracterized by the predominance of trucks and buses. Data for the Depart-ments of La Paz, Cochabamba and Santa Cruz indicate that commercial trafficamounts to 68% on paved roads, 76% on gravel roads and 77% on earth roads(Table 2.6).

2.08 There are no large transport companies in Bolivia. Intercitypassenger transport is in the hands of commercial firms and of cooperativeswith fleets of up to 40 vehicles and is organized into 25 syndicates whichcontrol one or several routes. Freight transport is performed by privatelyowned trucks also organized into syndicates. These syndicates are groupedthrough provincial federations into a national confederation and play a keyrole in representing the industry vis-a-vis the Government and in controllingits operations. The industry has generally responded quickly to shifts indemand, and the rates for buses and tariffs for trucks set by MTCCA seemreasonable (paras 2.09 and 4.11). So far, trucking has complemented railwaytransport. In the future, however, as the primary network is expanded andimproved, it would be important to adopt policies that would ensure theeconomically efficient distribution of freight and passengers between thesetwo modes. The NTS would review the present structure of the road transportindustry and make recommendations for possible rationalization measures andmodal coordination policies.

2.09 The National Traffic Service registers and licenses all motorvehicle fleets, and MTCCA issues licenses for commercial transport, assignsroutes and authorizes fixed tariffs for buses and ceilings for trucks afternegotiations with the syndicates. In 1976, the Ministry of Finance issueda ban on vehicle imports to ease the country's balance of payments. This banhas been subject to many exceptions for buses and trucks, and has, so far,been effective only for light vehicles. The NTS would analyze the effects ofthe ban on the capacity of the industry.

2.10 Law No. 11771, dated September 6, 1974, regulates dimensions andweight of vehicles, and its enforcement is entrusted to SNC (Table 2.7). Afew overloading checks made in 1972 showed an average of 11% of overloadssurpassing load limits permitted on rear axles, with the highest percentageof 24% detected on the Cochabamba-Santa Cruz road. A new axle load surveywas conducted in 1976 and suggests that overloading (single rear axle inexcess of 11 tons) has increased to about 20%, with the highest percentage,about 45%, detected again on the Cochabamba-Santa Cruz road. The effort toimprove highway maintenance would have to be combined with a program to

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control overloading of trucks. Enforcement has so far never been attemptedon a continuing basis. SNC would, therefore, have to develop the necessaryorganization, which in view of the relatively low volume of traffic and thehigh cost of permanent enforcement, would require careful planning and evalua-tion. The NTS would, in its initial phase, analyze the most effective way tocontrol overloading and facilitate development of an enforcement program.During negotiations, the Government confirmed that, at the time of issuanceof the final report on the first phase of the NTS, by April 1, 1980, it wouldadopt a plan satisfactory to the Bank for the enforcement of vehicle dimensionand axle-load regulations throughout Bolivia and that, not later than threemonths thereafter, it would commence enforcement of such plan.

C. Highway Administration, Organization and Training

2.11 Bolivian highways are managed by SNC, a semi-autonomous agency underMTCCA. SNC originated from a Bolivian-American Highway Cooperative Serviceand was established in 1955 with the assistance of the Federal Highway Adminis-tration (FHA) under a USAID program. It replaced the former "Direccion deVialidad" which had become increasingly ineffective. The present organizationof SNC (Chart III) and its responsibilities to plan, build, maintain, andadminister highways are established in Supreme Decree No. 6684 of February 21,1964, and in Law No. 7390 of February 15, 1965.

2.12 SNC is headed by a Director, assisted by a Deputy-Director and aGeneral Counsel, and supported by the "Consulting Council" composed of theeight department chiefs. The eight central departments cover highway plan-ning; highway design; highway construction; highway maintenance; bridgedesign, construction and maintenance; equipment administration; finances;and general administration. Larger highway construction projects areadministered independently by a Field Project Chief appointed by the Directorand coordinated with the departments at headquarters. Highway maintenanceis performed through nine districts, which correspond roughly to the admin-istrative setup of the country into nine departments. Each district is headedby a Chief Engineer, assisted by a Deputy, and is subdivided into two to sixresidencies. Countrywide, there is a total of 36 residencies.

2.13 SNC's organizational structure is basically sound, but needs to bestrengthened. SNC has been overburdened with force account construction workwhich went beyond its managerial capabilities, resulting in a growing neglectof its maintenance obligations. Inadequate coordination between departmentsand between central and field units have, over the last few years, diminishedSNC's effectiveness, and repeated staff changes at high management levelduring 1977 have added to the problem. The present Minister of MTCCA isaware of the need to restore SNC's organizational effectiveness; he plansto curtail SNC's direct involvement in construction and to strengthen itsmaintenance capacity. The NTS would analyze, inter alia, SNC's organizationand management system (para 2.17).

2.14 The personnel of SNC comprises about 140 engineers, 115 technicians,530 administrative employees and 3,000 mechanics, operators and laborers, show-ing a satisfactory overall balance between engineers and administrative and

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operational staff (Table 2.8). Because of the relatively low level ofsalaries, it is common for the engineers and the better trained personnel tohold a second job; this understandably affects their effectiveness as far asSNC is concerned. The yearly turnover of approximately 10% of the staff isnot unusually high, but it affects mostly the more capable among the youngerstaff. In spite of the above limitations, SNC has considerable institutionalresilience, especially in the districts and residences which have more sta-bility in their personnel. These units would bear the brunt of the effortrequired for the proposed improvement of maintenance. They would be capableof doing so with technical assistance and training to be provided under theproject.

2.15 SNC field operations are hindered by the insufficient training ofmid-level technicians and foremen. An SNC Training Center was establishedat Patacamaya in 1973 to remedy this deficiency and to train operators andmechanics. The training center has classroom and office facilities to accom-modate about 30 people and an inadequate workshop. The teaching staff includesone director and one general instructor. The center has lacked the investmentsand operating budget necessary to develop its operations to the desiredlevel. It has carried out 15 short-term courses, training 300 operators and90 mechanics. The upgrading and amplification of the center's activitieswould be a major objective of the project. In fact, the advance technicalassistance provided under the Third Railway Project, inter alia, prepares thenecessary expansion of the center in 1978.

2.16 Other agencies cooperate with SNC in the development of the roadnetwork: (a) regional development corporations or boards, set up in differentDepartments, mainly in La Paz, Chuquisaca, Santa Cruz and Beni, often carryout road improvement projects in collaboration with SNC, as is being doneunder the Bank-financed Agricultural Project (Loan 1211-BO); (b) some largermining enterprises and the Government-owned oil company, YPFB, often supplyequipment or financing for maintenance of specific road sections important fortheir activities; and (c) the Army Corps of Engineers and the AgriculturalMinistry's Provincial Development Committees construct a limited number ofroads (para 2.20).

D. Highway Planning and Engineering

2.17 SNC's planning department is responsible for long-term planning,preparation of investment programs to be submitted through MTCCA to CONEPLAN(para 1.25), economic analysis of these programs, feasibility studies ofspecific projects, financial planning, preparation of the annual budget,and coordination with other Government agencies and external financial insti-tutions. The planning department is presently understaffed to carry out itsmany tasks satisfactorily. Highway programs have lacked clear definition ofobjectives and have not systematically included evaluation of economic prior-ities. The inventory of the national highway network has not been updatedregularly. Traffic counts and complementary OD surveys are often incompleteand not systematically used for projecting requirements. The NTS and thetechnical assistance under the proposed project would develop the properconceptual framework for highway planning and would strengthen the planning

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function within SNC. During negotiations, the Government confirmed that,

not later than three months after the issuance of the report on the first

phase of the NTS (para 1.28), it would consult the Bank on the measures

required to carry out the recommendations of the NTS, including, inter

alia, the recommendations concerning the organization of the road transport

industry (para 2.08) and the rationalization of road user charges (para 2.23).

2.18 Responsibility for highway engineering had previously been divided

between the construction department - to prepare specifications and to carry

out or supervise design work - and the planning department - to contract

consultants. A new department to take care of final engineering studies and

road design was set up in January 1978. The specifications for geometric

design of roads were established in 1972 by SNC and are generally satisfactory

(Table 2.9). Engineering design work by SNC staff has been limited to minor

projects and has been of adequate quality. SNC has increasingly used consul-

tants for engineering of large and medium size projects, relying either on

joint ventures of Bolivian and foreign firms or solely Bolivian. Design work

performed by consultants has been, in general, satisfactory, although there

have been some cases where closer supervision by SNC and less stringent

deadlines might have prevented serious problems.

E. Highway Construction

2.19 SNC's construction department is responsible for highway construc-

tion and for carrying out works either through contracting, by force account,

or in coordination with other Government agencies which perform special road

construction projects (para 2.20). Modern highway construction methods were

first introduced to Bolivia in the 1950s, when USAID and the FRA started their

technical assistance program and foreign contractors were employed to build

some of Bolivia's trunk roads. Two local firms that started as minor sub-

contractors at that time are now the largest construction companies in the

country, with capital of about US$25 million and US$5 million respectively

and with 100 and 20 engineers respectively. Four smaller companies are doing

highway construction jobs with capital of about US$1 million and a staff of

three to five engineers each. The quality of construction work performed by

these contractors is uneven, often affected by the lack of know-how in specific

matters such as compaction, surfacing material selection and pavement tech-

niques. Until recently, the capacity of the road construction industry has

been sufficient for Bolivian needs, but the planned expanded activity in this

field will necessitate participation of foreign contractors. Argentine,

Brazilian and Chilean construction companies have shown interest in partic-

ipating in Bolivian construction projects. The NTS will address itself to the

further development of the domestic construction industry, including ways and

means of strengthening its managerial capability and technical know-how.

2.20 Traditionally, SNC has carried out rehabilitation and construction

of secondary and tertiary roads by force account through special regional units

under a Field Project Chief (para 2.12). In recent years, however, SNC has

increasingly awarded construction projects to contractors through public

bidding. This trend will continue as the Government strengthens SNC's role in

maintenance and rehabilitation. The Army Corps of Engineers and the Provincial

Development Committees of the Ministry of Agriculture have also constructed

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roads either in strategic areas or in relation to agriculture programs.Sia,ce 1969, the Communal Development Service has carried out, with USAIDassistance, the construction of low standard penetration roads, about6,0J0 km to date. The roads have contributed toward improving communicationswith rural areas, but have not been adequately maintained. A followup project

was initiated in 1977 to improve or construct 1,200 km of feeder roads in thedistricts of La Paz, Cochabamba, Santa Cruz and northern Chuquisaca. A

special unit has been organized within SNC to carry out this project and toprepare a similar one for southern Chuquisaca, Potosi, and Tarija. Afterconstruction, these roads would be administered and maintained by SNC.

F. Highway Financing and Road User Charges

2.21 Highway expenditures for the period 1971-1976, comprising construc-tion, improvements, maintenance and administration, are shown in Table 2.10.Over this period, the level of expenditures increased steadily from US$13.8million in 1971-1972 to US$43 million in 1976, averaging about US$22 millionannually. These expenditures have been financed from earmarked road usercharges (6%), from the national budget (73%) and from external sources (21%).Estimated contributions from road user charges to Government receipt areshown in Table 2.11. The revenues from existing road user charges have,on the average, been sufficient (US$23 million equivalent per year) to coverall highway expenditures, including new construction.

2.22 The current Five-Year Plan (1976-1980) includes about US$600 millioninvestment in highway construction, about US$270 million for ongoing projectsand the balance for projects under study. This is, by all measures, an ambi-tious target. Difficulties in financing have delayed or prevented execution ofthe ongoing projects, and, for th; same reason, many of the projects under studywould have to be postponed or cancelled. The NTS would review the investmentpriorities in roads and match them with foreseeable levels of expenditures todevelop a coherent road development program. The financing requirements of thesector would, in turn, be used to assess the adequacy of road user charges.The NTS would also propose measures to rationalize road user taxes, some ofwhich are now collected inefficiently (para 2.17).

2.23 A recent (November 1977) Bank staff review of Bolivia's energysector identified the need to increase substantially (more or less double)prices for oil products in order to bring them closer to their internationalequivalent and provide financing for large investments required in the energysector. 1/ The proposed increase would not significantly affect the demandfor intercity road transport (para 4.10). The impact of the proposed increasewould be assessed under the NTS, as part of the comprehensive review of roaduser taxes, in relation to future levels of highway expenditures and inter-modal coordination (para 2.17).

1/ Prices for gasoline are now about US$0.30 equivalent per US gallon(US$0.08/liter) and US$0.27 per US gallon (US$0.07/liter) fordiesel fuel.

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G. Highway Maintenance

2.24 Road maintenance is financed under the SNC budget and carried outby SNC's maintenance department through its nine field districts with their"residencies" and camps. Each camp is, in general, responsible for 60 km ofprimary and secondary roads and 200 km of rural roads. SNC's annual roadmaintenance program recognizes three levels of maintenance reflecting theroads' traffic density:

(a) permanent maintenance, carried out on 7,700 km of roads withhigher traffic (21% of the road network, Table 2.12) includesright-of-way clearance, maintenance of drainage, maii_tenance andpatching of asphalt-treated surfaces, maintenance of shoulders,and blading of gravel surfaces with frequencies reaching from aconservative five times a year to an extremely high frequency of57 times a year on heavy traffic roads with unusually coarse gravel;

(b) temporary maintenance, done on about 7,500 km of gravel or secondaryearth roads with lower traffic (20% of the network, Table 2.12), issimilar to permanent maintenance, but includes only 2 or 3 bladingsa year; and

(c) occasional maintenance, performed on only a small part of theremaining 22,000 km of roads with little traffic, considers onlymanual right-of-way clearance, drainage maintenance and irre-gular repair of the surface with local material.

All maintenance levels also include emergency operations such as slide removaland restoration of services. These three maintenance levels do not have clearlydefined borderlines, and their application is not rigorous. They do provide,however, an effort to apportion resources to traffic. The planning of mainte-nance operations would be reviewed and improvgd under the project.

2.25 SNC's maintenance program has also included minor road improvementworks consisting of partial straightening of curves, widening of the roadway,and improvements of gradients, surfaces and drainage. These minor improvementsconsumed an important proportion of the maintenance budget until the early1970s (35% in 1972). In the last few years, however, they have been phasedout and now represent only 17% of maintenance expenditures (Table 2.10), andtheir share is even lower in the districts of La Paz, Cochabamba and SantaCruz. During negotiations, the Government confirmed that, during the executionof the project, SNC would keep expenditures for minor road improvement worksin the three districts at 10% or less of its budgeted expenditures for roadmaintenance in such districts.

2.26 Road maintenance expenditures remained almost constant during theearly 1970s and started to increase by 10% per year since 1974, reachingUS$7.6 million in 1976 (Table 2.10). The average road maintenance expendituresamount to US$217/km and are still very low and unevenly distributed: 72.3%is spent in permanent maintenance for 21% of the network with an average ofUS$917/km; 7.5% is used for 20% of the networks with an average of US$97/km;

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and 3.2% is spread over the remaining 59% of the road system, rendering anaverage of only US$13/km (Table 2.12). These expenditures are less thanhalf of those in neighboring countries, Paraguay, Peru and Chile.

2.27 The main deficiencies in the Bolivian road maintenance can beclassified as follows:

(a) maintenance of paved roads, mostly surface treatments, is limitedto some patching and surface dressing. Periodic operations, e.g.,patching, seal coat, surface treatments, are neglected as wellas rehabilitation and strengthening; shoulder maintenance is alsoinadequate;

(b) maintenance of gravel roads is impeded mainly by the use ofoversized materials. Although there is an abundance of goodquality gravel or rock in the highlands and valleys, no screen-ing or crushing is used. The resulting high surface roughnesscannot be diminished effectively, even by frequent grading.Little attention is given to reposition or reinforcement of thewearing course, and no watering or compaction is applied.Additionally, drainage and slope maintenance are oftendeficient; and

(c) earth road maintenance is widely neglected because of insuf-ficient manpower and lack of equipment, partly caused by theconcentration of the available grading equipment on gravel roads.The consequent surface deformation and the lack of adequatedrainage and slide controls cause high vehicle operation costsand extensive interruptions of earth roads during the rainyseason.

The proposed highway maintenance project is geared to improve these mainte-nance deficiencies.

2.28 The intensive use of labor in road maintenance is quite common inBolivia. The main source of labor evolves from the unique Bolivian duty ofevery male citizen between the ages of 18 and 60 to work for three days per yearon road construction or maintenance. This three-day highway service (presta-cion vial) can be avoided by paying a tax of b$ 10 per year (at present US$0.50equivalent). The low amount of this tax (eroded by inflation over the years)has induced more and more people to avoid active service. SNC is thereforeproposing to increase the highway service tax to US$5 per year, which undoubtedlywould increase the number of people willing to work. Another source of freelabor used with varying success in many residencies is manpower supplied bysome well organized rural communities, either on a voluntary basis or inexchange for equipment hours to be rendered by SNC. The tax-induced as wellas the community-supplied laborers are mostly unskilled and very often do notreceive adequate tools for their assigned tasks. These tasks are mainlyright-of-way clearance, some of the drainage maintenance included in bothpermanent and temporary maintenance, and most of the occasional maintenance.

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Under the proposed highway maintenance project, SNC would, with the aid oftechnical assistance, explore possibilities to further extend manpower avail-

ability for road maintenance and to increase its effective use.

2.29 SNC's maintenance equipment and vehicle fleet is neither adequate in

composition nor sufficient in quantity and quality. It barely has any crushing,

screening, watering or compaction equipment, and acquisition of other types of

equipment has been sporadic, depending mainly on the availability of external

funds. Two major equipment procurement programs were carried out during the

1960s with USAID financing, the latest in 1968-1969. No significant new equip-ment procurement was done until a loan was obtained from Brazil in 1974. The

existing fleet of about 1,140 major units is aging and partially in poor condition.Average age is 8.3 years for specialized machinery and 6.9 years for trucksand vehicles; 25% of the equipment is more than 10 years old (Table 2.13).SNC estimates that 32% of the fleet is in good working condition, 40% needs

repair or overhaul and 28% is to be scrapped within the next few years.Estimates for the districts of La Paz, Cochabamba and Santa Cruz show anaverage equipment availability of 50% and a utilization of 70% of availableequipment, resulting in an overall equipment utilization of 35%. The proposedproject would aim at increasing overall equipment utilization and renewing the

fleet, adjusting its composition and carrying out overhaul of salvageable units

and scrapping of obsolete ones. The project would also aim at introducingsystematic renewal procedures.

2.30 There is a central workshop for major equipment repair in La Paz anda small one in each district's headquarters. The central workshop is fairlywell equipped to carry out major overhauls for all districts, but the districtworkshops are, in general, inadequately equipped to perform needed repairs.Spare parts acquisition is insufficient and lagging, and storage and distri-bution of spare parts are not efficient. Properly trained mechanics,operators, and foremen are also very scarce. SNC equipment repair capabilitywould be improved under the proposed project.

2.31 Advance technical assistance for highway maintenance is being pro-vided to SNC under the Third Railway Project, Loan 1422-BO (US$0.5 million).Consultants Wilbur Smith (US) and their Bolivian associates have been retainedand are scheduled to commence their services in June 1978. They would help

strengthen management of highway maintenance, improve and amplify trainingand initiate implementation of the proposed project. Additional technicalassistance would be provided under the proposed project to continue andexpand this initial effort.

III. THE PROPOSED PROJECT

A. Project Development and Preparation

3.01 At the time of formulation of the current Five-Year Plan, theGovernment recognized that the ambitious program for upgrading and expansion

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of the road network would have to be accompanied by improvement in roadmaintenance. The Bank's transport sector mission, organized in April 1976,confirmed the priority of maintenance. The Government subsequently requestedBank assistance in this field which would complement ongoing and plannedassistance from IDB (highway construction) and USAID (feeder road construc-tion). The expansion of SNC's maintenance capacity is perceived as along-term objective to be achieved gradually, starting with the improvementof field operations in key districts and leading eventually to the preparationof a possible countrywide program for road maintenance, rehabilitation andupgrading.

3.02 The proposed project, which would be the Bank's first involvementin Bolivia's highway sector, has been kept simple and focused on a primaryobjective: development and introduction of improved maintenance methods,expansion of capacity, and training of personnel in the three key districtsof La Paz, Cochabamba and Santa Cruz. These three districts were selectedfor the proposed road maintenance project because they constitute the mostimportant urban, industrial and agricultural areas of Bolivia and receivedpriority consideration in the Five-Year Development Plan. Their 15,000-kmroad network comprises 40% of the national network, carries about 75% oftotal traffic, and extends over large areas with very different climates,topography and soil conditions, representing Bolivia's three distinct geographicregions (paras 1.02 to 1.04). Highway maintenance activities are, by nature,short to medium term, call for flexible programming and supervision andshould, therefore, be handled at the district level. Road maintenance in theother districts, although not the object of specific improvement programs atthis stage, would benefit from project measures dealing with SNC's centralorganization: improvements in the central workshop (para 3.13a) and in thecountrywide maintenance personnel training (para 3.16), and the systematicexchange, at national level, of maintenance information and experience inperiodic workshops and seminars (para 3.16d). The project was prepared by SNCwith assistance from the Bank staff over the period March to November 1977.The methodology used for project preparation is explained below (paras 3.06and 3.07) and in Chapter IV.

B. Objectives and General Description

3.03 The specific objectives of the project are:

(a) to carry out, in the three SNC districts of La Paz, Cochabamba andSanta Cruz, over the period mid-1979/mid-1983 (para 3.25), themaintenance required and to eliminate the backlog of deferredmaintenance;

(b) to strengthen the road maintenance organization at headquartersand in the three project districts and to improve and rationalizemaintenance planning, procedures and standards;

(c) to complete the fleet of maintenance equipment and vehicles inthe three project districts and to improve its availability andutilization for maintenance activities;

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(d) to improve, through training, the capability of maintenancepersonnel at all levels at headquarters and in the threedistricts; and

(e) to prepare a countrywide highway maintenance, rehabilitationand upgrading program.

3.04 The project components are:

(a) implementation, in the three project districts, of agreedfour-year programs (mid-1979/mid-1983) of about 15,000 kmof roads, including deferred maintenance of about 2,000 km;

(b) acquisition of maintenance equipment and vehicles to com-plete and expand, as necessary, the maintenance fleet inthe three project districts;

(c) buildup of spare parts stock for preventive maintenance ofexisting and new equipment and vehicles, and acquisitionof spare parts for major overhauls of salvageable equipmentand vehicles;

(d) acquisition of workshop tools and equipment, and construction orexpansion of workshops and warehouses;

(e) acquisiton of training equipment and tools, traffic countersand specialized equipment for the SNC soil laboratory;

(f) acquisition of hand tools for labor-intensive road maintenanceoperations;

(g) technical assistance at SNC headquarters and in the projectdistricts (i) to implement all phases of the project; (ii) todevelop and carry out training programs; and (iii) to assistin the preparation of a nationwide maintenance program; and

(h) engineering and economic studies to prepare the program forupgrading and rehabilitation of earth, gravel and paved roads.

3.05 The project would be carried out over a period of five years; itwould be initiated during the first year and would be implemented over thefour years mid-1979/mid-1983.

C. The Four-Year Maintenance Programs

3.06 A review of SNC maintenance operations showed that the volume ofmaintenance is deficient but also that the maintenance policies and proceduresare not fully adequate. It was therefore important in the preparation of theproject to adopt a methodology which would allow testing of alternativemaintenance policies on various types of roads within various traffic ranges.In order to carry out this analysis, SNC, in agreement with the Bank staff,adopted the Highway Design and Maintenance Standards Model (HDM) developed bythe Massachusetts Institute of Technology and the Bank on the basis of

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research work carried out in Kenya. 1/ A special project was undertaken tomeasure, in situ, road roughness coefficients in order to use the HDM modelunder Bolivian conditions.

3.07 The basic steps leading to the determination of the maintenanceprogram are: (a) the condition inventory and traffic survey of the roadnetwork of the three project districts (Tables 3.1 and 3.2); (b) assessmentand costing of maintenance activities (Table 3.3); (c) the estimate of vehicleoperating costs for various classes of road (Tables 3.4 and 3.5); and finally(d) determination, through an iterative process of optimization, of thespecific maintenance programs to be carried out in the three districts overthe project period. The programs are defined in Table 3.6 in terms of annualquantities for main types of activities. Table 3.6 also indicates expectedperformance concerning use of equipment (specified in terms of availabilityand utilization factors). Present road maintenance standards are shown inTable 3.7. The maintenance standards to be applied as a result of theiterative optimization process (para 4.09) under the programs for varioustypes of roads and classes of traffic are indicated in Table 3.8. Table 3.6and Table 3.8 constitute a definition of the programs to be implemented. Theproposed programs are compatible with expected levels of funding (para 3.22).During negotiations, the Government confirmed that, commencing in 1979, andthrough the project period, SNC would review the detailed work programs foreach project district (Table 3.6) and would consult with the Bank on thescope and content of these annual programs before their inclusion in SNC'sproposed budget.

3.08 The salient features of the maintenance programs for the three projectdistricts are presented in Annex 1. Average road maintenance expenditures inthe three districts, not including deferred maintenance, would be US$382/km atthe end of the project (Annex 1, Section 5). The optimization process stressedthe high cost effectiveness of surfacing gravel roads with graded crushedmaterials of much smaller size than the natural gravel currently used by SNC.This process also evidenced the need to undertake rehabilitation and strengthen-ing of aging pavements, and it pointed out that the three districts have manykm of earth roads and some km of gravel roads which are carrying volumes oftraffic substantially above the threshold warranting upgrading. Upgrading andrehabilitation projects would, however, require further preparation as providedunder the project (para 3.19).

3.09 The detailed network analysis showed that SNC has accumulated a backlogof periodic resurfacing on gravel roads which would be eliminated under theproject by carrying out regraveling above normal requirements. A similar situa-tion exists for pavement maintenance where deferred maintenance is necessary.The deferred maintenance works have been integrated into the programs for the

1/ H. Hide, S. W. Abayanayaka, I. Sayer and R.J. Wyatt, The Kenya RoadTransport Cost Study: Research and Vehicle Operating Costs. TRRLReport LR672, and J.W. Hodges, J. Rolt and T.E. Jones, The Kenya RoadTransport Cost Study: Research on Road Deterioration. U.K. Departmentof the Environment TRRL Report LR673 (Crowthorne, Transport and RoadResearch Laboratory, 1975).

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project districts. The cor esponding volume is shown in Table 3.6, amountingin total to aboit 740,000 m of pavement repair (covering 700 km of roads)and 1,000,000 m of resurfacing of gravel roads (1,400 km)).

3.10 Deferred maintenance would be carried out in the three projectdistricts by SNC force account as all other maintenance activities (para2.20). Technical assistance and equipment for deferred maintenance areincluded in overall project requirements. In addition, the Bank wouldparticipate in the financing of direct costs incurred by the districts incarrying out the deferred maintenance works. The annual program of work,including quantity estimates and unit cost determined on the basis ofanalysis of such direct cost, would be prepared by SNC with the assistanceof consultants each year at the time of preparation of the budget. Suchprogram would then be discussed and agreed with the Bank. The consultantswould supervise this work closely and would monitor efficiency and output.This would provide SNC a firmer basis to assess the real cost of regravelingand pavement repair for the planning of its maintenance program. Thesearrangements were confirmed during negotiations.

D. Equipment

3.11 A major component of the proposed project would be to renew andexpand the maintenance equipment and vehicle fleet of the three projectdistricts (Table 3.9) as necessary to provide them with adequate capacityto carry out their respective maintenance programs. The analysis of equipmentrequirements (Table 3.10) is presented in Annex 2. It took into account thecondition of the existing fleet (including planned overhaul), the overallcapacity required and the agreed targets for equipment performance. The listof equipment, vehicles and tools, and overall spare parts requirements, aswell as the related purchasing schedule, were reviewed and agreed upon duringnegotiations.

3.12 The project would also include overhaul of existing salvageableunits in the three districts (estimated number 200) and scrapping of obsoleteones. Necessary spare parts would be provided under the project. The dis-trict workshops would carry out the overhaul with technical assistance fromthe consultants. During negotiations, the Government confirmed that SNC would(a) prepare, by September 30, 1978, with the help of the advance technicalassistance, a detailed list of units to be overhauled and a scrapping programand (b) start implementation of a systematic scrapping program by July 1, 1979.The Government also confirmed that the new and overhauled equipment andvehicles would be used exclusively for maintenance and minor improvement worksin the three districts and that no further acquisitions of maintenance equip-ment units would be made over the project period without informing the Bank inadvance.

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E. Workshops and Spare Parts

3.13 To improve maintenance equipment and vehicle fleet availability,workshop and warehousing practices would have to be modernized and a basicstock of spare parts for preventive maintenance provided. To this end, theproject would include:

(a) expansion of existing workshops and warehouses in Cochabambaand Santa Cruz and construction of new facilities in La Paz;

(b) workshop tools and equipment in the three districts and forthe central workshop at El Alto;

(c) spare parts for preventive maintenance for equipment andvehicles in the three districts; and

(d) improvement of workshop and warehousing techniques andmanagement, including acquisition, storing, controllingand distribution of spare parts.

The more efficient operation of the workshops would also require adequate andtimely allocation of funds to maintain a basic stock of spare parts. Stocksare frequently depleted for lack of specific provision in the budget. Duringnegotiations, the Government confirmed that SNC would take necessary actionfor facilitating proper maintenance and repair of its equipment and vehicles,and that adequate funds would be provided under specific allocations in SNC'sbudget for purchases of spare parts.

3.14 Since the project provides spare parts only for the maintenanceequipment and vehicles of the three districts, the Government confirmedduring negotiations that spare parts (and all other goods and services)provided under the project would be used exclusively for the maintenanceprograms in the districts except as the Bank shall otherwise agree. Further,the Government agreed that the reorganization of SNC's supply and distributionsystem for spare parts for the three districts would be a condition for dis-bursement for procurement of spare parts.

F. Tools and Equipment for Labor-Intensive Maintenance Activities

3.15 The project would assist in the efficient utilization of labor forroad maintenance operations by providing technical assistance to improvethe management of these operations, and an adequate supply of hand tools forvegetation control, ditch and culvert cleaning, removal of slide materials,shoulder and road bed repairs and spot regraveling. In addition, the projectwould provide intermediate technology equipment, such as agricultural tractorswith trailers, towed graders and drags, to be used independently or in com-bination with hand labor in maintenance of earth and gravel roads. Two ofthese equipment combinations would be supplied to each district.

G. Training

3.16 Although SNC is a well established organization, its personnel arerelatively poorly trained and often employ inefficient work methods. Thetraining component included in the technical assistance of the proposed

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project would make an important contribution toward meeting the operationaltargets agreed upon by SNC and the Bank. Its aim is to improve staff produc-tivity and operational efficiency through training, retraining and upgradingabout 1,000 skilled workers and low, middle and high level supervisors. SNC,with the assistance of consultants (para 2.31), would:

(a) establish a permanent training unit within SNC which wouldbe responsible for the planning, implementation and super-vision of all training activities;

(b) upgrade and expand the activities of the SNC TrainingCenter (para 2.15) by improving the existing mechanicalworkshop and preparing short and long-term courses basedon better procedures and work methods required for roadmaintenance. These courses would be addressed in par-ticular to low-level road and equipment supervisors;

(c) carry out an expanded program for the training of about1,000 personnel (400 equipment operators and drivers,300 mechanics, 100 road and equipment supervisors, and200 administrative/accounting staff). The program wouldpossibly include the setting up of a field TrainingProduction Unit (TPU). Personnel assigned to a TPUwould thus be trained under actual working conditionswhile carrying out useful and much needed roadrehabilitation and maintenance;

(d) organize periodic workshops and seminars on differenttopics related to maintenance management, accountingand administration for middle and high level staff; and

(e) make a study of the manpower requirements of SNC forthe next five years, including related training needs,and taking special account of overall maintenance per-sonnel requirements.

During negotiations, the Government confirmed that SNC would furnish tothe Bank by December 31, 1978 a plan of action satisfactory to the Bankto carry out the training program. This plan, to be updated annually inconsultation with the Bank, would take into consideration any additionalstudies and recommendations on training expected to be carried out by the newconsultant services proposed under the project. Further, the Governmentconfirmed that SNC would (a) carry out a review of its personnel managementpolicies to identify necessary modifications, which would be the object ofconsultation with the Bank by December 31, 1979, and (b) use its best effortsto retain in its employ, after the completion of the Project, the personsworking as counterparts to the technical assistance. Funds would be providedunder the loan for the purchase of training equipment (US$300,000) and therecruitment of training specialists-instructors (US$432,000) for about 72man-months.

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H. Technical Assistance

3.17 Technical assistance would be provided in the following areas:(a) maintenance organization and management; (b) maintenance programming;(c) workshop and warehousing practices; (d) personnel training; (e) super-vision of the deferred maintenance program; and (f) preparation of a country-wide road maintenance project. Fourteen experts (one Road MaintenanceEngineer-Project Manager, two Road Maintenance Engineers, two EquipmentSpecialists, one Transport Economist, four Specialists in different fields,and four Training Specialists) would be required over a four-year projectperiod for a total of about 350 man-months. During negotiations, the Govern-ment (a) agreed to the terms of reference for the technical assistance, (b)confirmed the number and qualifications of the counterpart staff for thetechnical assistance and the dates at which SNC would make each counterpartstaff member available, (c) agreed that the availability of the counterpartpersonnel to the project manager, to the equipment specialist, to the roadmaintenance specialist and to the training specialist of the advance technicalassistance (para 2.31) would be a condition for effectiveness of the Loan,and (d) confirmed SNC's commitment to consult with the Bank on any othermaintenance-related technical assistance over the project period.

3.18 The technical assistance to SNC is crucial for the successfulimplementation of the project. SNC would have to provide experienced counter-part staff for both the advance technical assistance and the assistanceprovided under the project. An important objective of the technical assist-ance would be to help SNC improve the availability and utilization of main-tenance equipment by improving maintenance programming and warehouse, workshopand field organization and work control. Support equipment for laboratoryand field tests and traffic counting would be provided under the project.

I. Preparation of Road Rehabilitation and Upgrading Program

3.19 In order to meet high priority requirements identified duringproject preparation (para 3.08), the proposed project includes detailedengineering and economic studies necessary to prepare a program for rehabili-tation and upgrading of about 300 km of paved roads and 900 km of earth andgravel roads. The NTS (para 2.05) would confirm the specific sections to beconsidered under the proposed rehabilitation and upgrading program in theproject districts as well as other districts not involved in the presentproject. During negotiations, the Government confirmed that SNC would(a) establish, at the time of the issuance of the final report on the firstphase of the NTS, a list setting forth the paved, earth and gravel roadsections for which detailed engineering and economic studies would be done,and (b) furnish such list to the Bank for its approval.

3.20 During negotiations, the Government confirmed that, to assist in carry-ing out the detailed engineering and appropriate economic studies of selectedroad sections, SNC would employ consultants, whose qualifications, experienceand terms of conditions of employment would be satisfactory to the Bank. Thenumber and scope of contracts to be awarded and their implementation schedule

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would be determined by SNC in agreement with the Bank. The engineering

studies would pay particular attention to the opportunities to use labor-

intensive methods for upgrading of earth and gravel roads.

J. Cost Estimates and Financing

3.21 The implementation of the project would entail recurrent expendi-

tures to carry out the agreed maintenance programs in the three districts

and capital expenditures, including deferred maintenance, equipment, technical

assistance etc. The Bank would participate only in the financing of the

latter, which are designated as project expenditures. The financing require-

ments of the project are presented in Table 3.11 and summarized as follows:

(US$ million equivalent - April 1978 values)1979 1980 1981 1982 1983 Total

(half) (half) 4 Years

(a) Recurrent expendituresin three project districts 2.4 5.0 5.4 5.8 3.2 21.8

(b) Project expenditures:- Government 3.2 2.3 2.2 1.8 0.8 11.3- Bank 15.6 3.8 3.5 1.6 0.5 25.0

Sub-total (b) 19.8 6.1 5.7 3.4 1.3 36.3

Total (a) and (b) 22.2 11.1 11.1 9.2 4.5 58.1

Total project costs would be about US$36 million with a foreign exchange

component of US$25 million, about 70%, which would be financed by the Bank.

The balance would be financed by the Government, which would also finance

about US$22 million equivalent for recurrent maintenance expenditures. The

proposed loan would, over the project period, cover about 43% of recurrent

and project expenditures in the three districts.

3.22 The proposed level of expenditures is in line with SNC's absorptive

capacity and within the financial capacity of the Government. During negotia-

tions, the Government confirmed that it would provide, promptly as needed,

the funds, facilities services and other resources required to carry out

the project in the three districts. To obtain a satisfactory specification

of these items for the maintenance program, the Government confirmed during

negotiations that SNC would reorganize its maintenance accounting system

to show, from January 1, 1980 onward, itemized expenditures of routine and

periodic maintenance, minor improvements, rehabilitation, major improve-

ments and construction. Further, the Government confirmed that it would:

(a) provide, promptly as needed, the funds, facilities, services and other

resources required to enable SNC to continue, after the project period, to

maintain adequately the roads in the Districts of La Paz, Cochabamba and

Santa Cruz, and to keep the maintenance of roads in the Districts other than

those included in the project at least at their present level; and (b) consult

with the Bank by July 1, 1981 on the program for improvement and strengthening

of highway maintenance, covering the entire territory of Bolivia, to be prepared

with the help of the technical assistance supplied under the project.

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3.23 Project costs (summarized on page 27) are based on SNC estimatesupdated to April 1978; they have been derived as follows:

(a) Constru2tion of warehouses and workshops: estimates for the4,000 m of covered area are based on recent SNC contracts forsimilar works; foreign exchange component is about 50%, takinginto account that these relatively small works would attract onlylocal contractors.

(b) Deferred maintenance: estimates of direct costs to be incurredby the districts are based on current operating costs for SNCfield units applied to overall quantities (para 3.08); theforeign exchange component amounts to about 44% includingimported materials, mainly asphalt, parts, lubricants, andindirect foreign exchange costs (fuel, etc.).

(c) Equipment, vehicles, spare parts, workshops, tools, etc. (seedetails Table 3.10): estimates are based on recent suppliers'bids and quotations and price lists (spare parts) CIF La Pazobtained by SNC for similar items. Spare parts requirementshave been estimated in relation to the value of the equipment:15% of new equipment for initial stock, 5% of the renewal valueof existing equipment for constitution of preventive maintenancestock and average requirements per piece of equipment to be over-hauled (US$1,000 for light vehicles, US$3,500 for heavy vehiclesand US$6,000 for heavy equipment). The foreign exchange componentcorresponding to CIF Bolivia border price amounts to 90% of thecost, the 10% local component representing internal transporta-tion, preparation, delivery and dealer commission. No taxes arelevied on SNC imports.

(d) Consulting services: estimates for technical assistance arebased on rates negotiated for the recent advance technicalassistance to SNC (para 2.31); the 85% foreign exchangecomponent reflects necessary reliance on foreign experts. Esti-mates for engineering services are based on cost for similarongoing studies; the 50% foreign exchange component reflectsthe expectation that Bolivian firms would participate, with,however, an important element of foreign expertise necessary,particularly for pavement studies. The total number of man-months of professional services would be about 350 for technicalassistance and 400 for road studies. Rates for man-months wouldaverage about US$3,000 equivalent for Bolivian engineersand about US$7,800 for foreign experts, including livingallowances, transportation and miscellaneous, which is inline with current rates for similar services.

Physical contingencies of 10% have been allowed for deferred maintenance andworkshops and warehouses. Price contingencies have been estimated at 14% forthe foreign component and 50% for the local component, reflecting annual ratesof inflation, defined in the cost table on the next page.

Project Cost Estimates and Financing

BankIn B$ million In US$ million Participation (US$)

Local Foreign Total Local Foreign Total fec Million %

I. Civil Works

(a) Workshops and warehouses 6 6 12 0.3 0.3 0.6 50 0.3 46(b) Deferred maintenance (Table 3.6)

(i) paved roads (700 km) 26 26 52 1.3 1.3 2.6 48(ii) gravel roads (1,400 km) 52 36 88 2.6 1.8 4.4 44

Subtotal (i+ii) 78 62 140 3.9 3.1 7.0 3.1 46

Subtotal (a+b) 84 68 152 4.2 3.4 7.6 3.4 46

II. Equipment, Vehicles, Tools and Spare Parts (Table 3.10)

(a) Maintenance equipment, vehicles and tools 24 216 240 1.2 10.8 12.0 90 10.8 90(b) Spare parts (initial stock, preventive

maintenance, overhaul) 6 60 66 0.3 3.0 3.3 90 3. 90(c) Workshops, laboratory and training equipment

and tools, and traffic counters 4 26 30 0.2 1.3 1.5 90 1.3 90

Subtotal (a+b+c) 34 302 336 1.7 15.1 16.8 15.1

III. Technical Assistance and Training 8 46 54 0.4 2.3 2.7 85 2.3 85

IV. Engineering and Economic Studies for RoadUpgrading and Rehabilitation 18 18 36 0.9 0.9 1.8 50 0.9 46

Base Cost (April 1978) 144 434 578 7.2 21.7 28.9 21.7

V. Contingencies

(a) Physical (10% of I and II (b)) 8 8 16 0.4 0.4 0.8 0.3(b) Price Escalation 1' (50% local and14% foreign costs) 72 60 132 3.6 3.0 6.6 3.0

TOTAL ESTIMATED PROJECT 224 502 726 11.2 25.1 36.3 25.0

1/ Based on the following estimated annual price increases:- Local: 17% for 1978 and 15% for 1979-83- Foreign:Parts I, III, and IV 1978: 8%; 1979: 7.5%; 1980-85: 7%

Part II ... .. 1978: 7%; 1979: 6.5%; 1980-85: 6%

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3.24 Disbursement of the loan would be made as follows:

(a) 46% of total expenditures for construction and expansion ofworkshops and warehouses and of the deferred maintenancecosts;

(b) 100% of the foreign expenditures for direct imports or 90%of local expenditures for local procurement of imported goods;

(c) 100% of foreign expenditures or 85% of total expendituresfor technical assistance and training; and

(d) 100% of foreign expenditures or 46% of total expendituresfor engineering and economic studies.

The estimated schedule of disbursement is given in Table 3.12. Disbursementwould be made against normal documentation except for deferred maintenanceby force account, which would be disbursed against statements of expendituressupported by monthly certificates of work performed, approved by consultants.Documentation for these expenditures would not be sent to the Bank and wouldbe retained by SNC for review by Bank project supervision mission (para 3.10).

K. Execution, Procurement and Monitoring

3.25 Execution of the project would be the responsibility of SNC. Themaintenance program would not start before July 1979, allowing for the pro-curement of the requested equipment and vehicles. The tentative projectimplementation schedule, shown in Table 3.13, was reviewed and agreed duringproject negotiations.

3.26 The technical assistance services would be provided by consultantsacceptable to the Bank under terms and conditions satisfactory to the Bank.The magnitude and scope of technical assistance services clearly calls for anestablished foreign firm. Decree 13946, regulating consulting activitiesin Bolivia, requires that foreign consultants should associate themselveswith local consultants and that staffing should include at least 30% of localprofessionals, unless not enough local professionals are available for thespecialized projects at hand (Article 11). During negotiations, the Govern-ment confirmed that the proposed contract for technical assistance would fallunder the exception provided under Article 11. Further, the proceduresenvisaged for selecting a firm were discussed, and, to ensure proper coordi-nation with the advance technical assistance (para 2.31), the Governmentagreed to the continuity of the counterpart staff through both technicalassistance programs.

3.27 Consulting services for road engineering and economic studies wouldnormally be entrusted to local firms or joint ventures of foreign and local firms.Selection would follow SNC established procedures. The selection of the firms,the terms of reference of the studies and the terms and conditions of the con-sultants' contract would have to be acceptable to the Bank (para 3.20).

3.28 Procurement of equipment, tools, parts, etc. would be in accordancewith the Bank's "Guidelines for Procurement" (March 1977). The procurementprogram for equipment, parts and tools, indicating lot sizes and estimated

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costs, would be subject to prior approval by the Bank. Contracts withestimated value of over US$50,000 would be awarded through internationalcompetitive bidding. Lots, equipment, vehicles, tools and parts, which canbe obtained from a number of sources with estimated values of less thanUS$50,000 and within an overall ceiling of US$1 million, would be advertisedlocally following SNC's procurement regulations, which are satisfactory.When necessary, spare parts for specific makes of equipment would be procureddirectly from established dealers in accordance with SNC procurement regula-tions for individual orders of less than US$50,000 and within an overallceiling of US$250,000. The ceiling of contracts for which SNC would notrequire prior approval by the Bank would be set at US$50,000.

3.29 Construction and extension of workshops and warehouses would beprocured through SNC regulations which allow for adequate competition. Bidswould be advertised locally since only local contractors would be interestedin these small-scale works (costs of about US$0.5 million each). Duringnegotiations, agreement was reached on all procurement procedures as out-lined in paragraphs 3.26-3.29.

3.30 The progress of the project in each district would be monitoredthrough the indicators given in Table 3.6. Monitoring data would cover(a) the scope of volume of maintenance operations shown by detailed andaggregate measures of work performed; and (b) the efficiency of the equipmentfleet assessed through systematic sampling of equipment availability andutilization. During negotiations, the Government confirmed that the aboveindicators would be monitored following methods satisfactory to the Bank andreported on annually.

L. Impact and Adequacy of Technology

3.31 The project would have no significant environmental impact. Itwould improve highway safety, especially through repair of damaged pavementsand use of smaller size graded materials on gravel roads. The project wouldhave an employment impact since it would require about a 10% expansion of SNCmaintenance operation personnel and would make increased use of unskilledlabor through the highway service and voluntary labor (para 2.28). Theproject would upgrade the qualifications of SNC personnel. It would assistin making better use of tax-induced labor by supplying adequate tools andimproving its management. It would also consolidate and strengthen communityparticipation in road maintenance work by utilizing, in a more systematic way,the limited experience gained so far and by setting up more efficient institu-tional arrangements. The project would explore and possibly developintermediate technology methods for road maintenance.

M. Project Risk

3.32 The main reasons for the poor level of road maintenance in Boliviahave been the lack of an adequate understanding of maintenance requirements,the insufficient capacity of SNC, caused largely by the poor condition of equip-ment, and the lack of trained personnel. The project includes a comprehensiveset of measures to remedy these deficiencies. Direct participation of SNC staffin project preparation has enhanced their perception of, and commitment to,the project objectives. The funding requirements for recurrent and projectexpenditures have been discussed in detail and agreed with the Government.

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The magnitude of the proposed expenditures represents only a small percentageof SNC's total funds and is well within the Government's financial capacity.The participation of fully qualified international consultants in projectimplementation would be an important element in achieving the project'sobjectives.

3.33 Risks have been curtailed but are still present, especially sincethis would be the Bank's first project with SNC. The procurement phaseof the project presents no special risk. It is possible, however, that theimplementation of the specific maintenance programs would encounter delays.The annual targets of the maintenance programs for the three districts already

reflect the fact that the full development of the operational capacity andefficiency of the districts would be realized gradually over the projectperiod. However, past experience with similar projects suggests that delaysin program implementation of one or two years are common even with the bestprepared projects. Another eventuality is that the expected improvements inefficiency would not be sufficient to meet fully the operational targets of

the programs defined for each district. Sensitivity tests carried out onboth risks (para 4.10) showed that the justification of the project would notbe affected.

IV. ECONOMIC EVALUATION

A. General

4.01 The objective of the economic evaluation was three-fold: first, toascertain the economic feasibility of the proposed highway maintenance projectas a whole; second, to take into account the different geographical conditionsin the districts of La Paz, Cochabamba and Santa Cruz and third, to determinean economically "optimal" scope and composition for the project. The evalua-tion was carried out by means of the Bank's HDM model which was adapted toBolivian road conditions through roughness measurements on representativeroads in the three districts of La Paz, Cochabamba and Santa Cruz, undertakenby the Texas Research and Development Foundation (US) in 1977.

4.02 The HDM model has been used to simulate total costs for roadmaintenance and vehicle operation of the "without" and "with" project casesover the assumed seven-year economic life of the project, corresponding tothe average economic life of the project. The specific operations undertakenby the HDM model were, inter alia, as follows:

(a) compute road deterioration and maintenance estimates forboth paved and unpaved roads as a function of the initialdesign standard, the present road surface condition, thevolume and composition of the traffic during the currentyear, the environment and the specified maintenance poli-cies ranging from low to high levels;

(b) estimate vehicle operating costs over the representativeroads within the three districts as a function of surfacetype and condition, environment, design geometry andvehicle characteristics and costs; and

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(c) estimate the current year's traffic volumes based on theprevious year's traffic and the projected growth ratesby vehicle type for both normal and generated traffic.

A draft user's manual describes in detail the methodology used in the HDMmodel. 1/

B. Analysis Network

4.03 For purposes of analysis, the networks of the districts of La Paz,Cochabamba and Santa Cruz were each divided into 10 representative links on thebasis of updated inventories prepared by SNC in 1977, two to identify surface-treated roads (only one for Santa Cruz), five for gravel roads and three forearth roads. One additional link for paved roads with asphalt concrete wasconsidered for the districts of Cochabamba and Santa Cruz. There is a detaileddescription of environmental and design characteristics and surface conditionsfor each of the 31 representative links (Tables 3.1 and 3.2).

C. Maintenance Activities and Unit Costs

4.04 Maintenance was divided into five activities for paved roads andfour for unpaved roads, each with its unit cost (Table 3.3). Table 3.7 de-scribes the frequency of the execution of these activities in the "without"project case, and Table 3.8 in the "with" project cases. The first is based onavailable data, experience and observations in Bolivia, and the second on thebest estimate of the changes that would be affected by the project. The "costadjustment factors" indicated in Table 3.3 are factors applied to the unitcosts given in the same table for each maintenance activity. These factorsvary, depending on the field conditions in the three districts, the intensityof maintenance operations and the increased productivity caused by the imple-mentation of the maintenance project.

D. Traffic

4.05 Each of the 31 representative links defined above has a specificlevel of traffic associated with it, as shown in Table 3.1. Existing trafficvolumes were established on the basis of traffic counts routinely conducted bySNC and by special counts and origin and destination surveys carried out bySNC in 1977. Road traffic is expected to grow at a rate of 7% in the districtof La Paz, 9% in the district of Cochabamba and 11% in the district of SantaCruz. The estimated growth rates seem reasonable and are in line with theBank's projection of GDP growth, which is expected to be in the 5-6% range.The proposed highway maintenance project would generate traffic by reducingpassenger and freight costs. The operating cost elasticities for road trans-port in Bolivia are moderate and were assumed on average, 0.3 for the typicalvehicle fleet. As a result, generated traffic in the first year of theproject implementation was estimated at about 4% of normal traffic.

E. Benefits

4.06 Benefits from implementing the highway maintenance project wereassumed to occur on account of reduced vehicle operating costs. Vehicle

1/ Draft Highway Design and Maintenance Model User's Manual prepared byConsultants in Management and Technology, Inc., Cambridge, Massachusettsin September 1977.

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operating costs were estimated on the basis of the information in Table 3.4for both the "without" and "with" project cases. Vehicle operating costsfor selected links are shown in Table 3.5. On average, about 12% ofvehicle operating costs is saved by carrying out the maintenance project.Benefits not quantified in the evaluation are reduced passenger time costs,decreased or prevented economic loss due to road closures and reduced accidentcosts. The evaluation performed is therefore conservative.

F. Economic Assessment

4.07 In carrying out the economic assessment, adjustments have beenmade to avoid the influence of taxes and subsidies and to account for thepresent very low prices of oil products (paras 2;23 and 4.10). Economiccosts net of taxes and subsidies have been estimated for investment costs,maintenance costs, and vehicle operating costs. A shadow rate of 2.25 forgasoline and of 1.85 for diesel was used. Since the shadow price for laborwould be only negligibly different from its market price and since thereare no major distortions in the exchange rate, no shadow pricing wasapplied to labor cost and to the exchange rate. The economic evaluationconsidered the total economic costs of the proposed highway maintenanceproject, including the economic costs of the investments under the projectas well as replacement costs during the analysis period 1979 to 1985.

4.08 The proposed highway maintenance program is clearly well justifiedwith an overall benefit/cost ratio of about 12.1 and a net present valueestimated at about US$160 million when an 11% opportunity cost of capital wasused. Thus, for the project as a whole, the economic rate of return would bewell in excess of 100%. These high rates of return reflect a situation when asmall investment permits the productive capacity of the large investment madein highway construction to be preserved. The corresponding results for thethree districts show a benefit/cost ratio of 16:1 for La Paz, of 7:1 forCochabamba and of 8:1 for Santa Cruz with a net present value estimated atabout US$110 million, US$15 million and US$40 million respectively(Table 4.1), and are explained in Annex I.

4.09 The scope and composition of the highway maintenance projectresulted fr'tm an iterative optimization process which was carried out foreach of the districts of La Paz, Cochabamba and Santa Cruz. The selectionof the "optimal" (or at least more efficient) maintenance policy for eachof the 31 representative links was based on net present value criterion,and only those which yielded a net present value greater than zero andwhich maximized the net present value within the policy alternatives havebeen selected for the proposed maintenance project (Table 4.2). The detailedfindings of the optimization process are described in Annex 1 and Table 3.8.

4.10 Sensitivity tests applied to the economic evaluation consider a 25%decrease in benefits and a two-year delay in the completion of the project(para 3.34). The overall benefit/cost ratio is 9:1 and the net presentvalue estimated of about US$120 million for the benefit decrease hypothesis,±nd 11:1 and about US$115 million respectively for the delay hypothesis, thusindicating that the project is still well justified (Table 4.3). Finally, aensitivity test was carried out to consider a 100% price increase for oil

products as recommended by the recent Energy Sector Mission to Bolivia (para2.23). The price increase would raise vehicle operating costs by about 20%,

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which, in turn, would reduce traffic growth rates in the order of 0.9% (assum-ing an average cost elasticity of 0.3). The incidence of the recommendedprice increase for oil products on the proposed highway maintenance projectthus proved rather insignificant.

G. Distribution of Benefits

4.11 Most of the benefits resulting from savings in vehicle operatingcosts would accrue directly to the road transport industry. The extent towhich these benefits are passed on to the general public would depend oncompetition within the road transport industry and/or on the rates and tariffsset by MTCCA (para 2.08). Approved rates and tariffs are reasonable and havebeen virtually unchanged since 1973 despite the substantial price increase foroil products in 1975. Under the presently prevailing circumstances, it islikely that savings in vehicle operating costs due to improved maintenancewould be, to a significant degree, passed on to shippers, farmers and passen-gers over the project period in the form of reductions or, more probably,avoided increases in rates and tariffs for road transport services.

4.12 In addition to the benefits to be derived from reduced rates andtariffs, farmers would benefit from the increased availability of transport,now suffering from the reluctance, on the part of the vehicle owners, totravel over poorly, or not, maintained rural roads, particularly during therainy season. The quality of service would also be substantially improved,bringing additional transport safety and punctuality, as well as importantpassenger time savings, to a large segment of rural population.

4.13 A deeper examination of the factors determining the distributionof road user benefits would be desirable but could not be attempted at thisstage for lack of data. The NTS would undertake a comprehensive study of thepresent market structure, behavior and performance of the road transportindustry and make recommendations for improvements to better meet the country'stransport needs.

V. AGREEMENTS REACHED AND RECOMMENDATION

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

(a) adoption of a plan satisfactory to the Bank for the enforcementof vehicle dimension and axle-load regulations throughoutBolivia, at the time of issuance of the final report on thefirst phase of the NTS, by April 1, 1980, and initiation ofenforcement of such plan, not later than three months thereafter(para 2.10);

(b) consultation with the Bank on the measures required to carryout the recommendations of the NTS, including, inter alia, therecommendations concerning the organization of the road transportindustry and the rationalization of road user charges, not laterthan three months after the issuance of the report on thefirst phase of the NTS (para 2.17);

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(c) SNC's minor road improvement works in the three districts to bekept at no more than 10% of budgeted expenditures for road mainte-nance during the project period (para 2.25);

(d) SNC to review, commencing in 1979 and through the project period,the detailed work programs for each project district and to consultwith the Bank on the scope and content of these annual programsbefore their inclusion in SNC's proposed budget (para 3.07);

(e) SNC to prepare, through the project period, annual work programs fordeferred maintenance, including quantity estimates and unit costs,and promptly furnish such programs to the Bank for discussion andapproval, before their inclusion in SNC's proposed budget (para 3.10);

(f) list of equipment, vehicles and tools, and overall spare partsrequirements, as well as the related purchasing schedule (para 3.11);

(g) SNC to prepare, by September 30, 1978, a detailed list of equipmentto be overhauled and a program to scrap wornout units to be startedby July 1, 1979 (para 3.12);

(h) the new and the overhauled equipment and vehicles to be used exclu-sively for maintenance and minor improvement works in the threedistricts, and no further acquisition of maintenance equipment to bemade over the project period without informing the Bank in advance(para 3.12);

(i) SNC to take necessary action for facilitating proper maintenanceand repair of its equipment and vehicles, and adequate funds to beprovided under specific allocations in SNC's budget for purchases ofspare parts (para 3.13);

(j) all goods and services provided under the project to be used exclu-sively for the maintenance programs in the three districts, except asthe Bank shall otherwise agree (para 3.14);

(k) SNC to furnish to the Bank, by December 31, 1978, a plan of actionsatisfactory to the Bank to carry out the training program, tocarry out a review of its personnel management policies in order toidentify necessary modifications, which would be the object ofconsultation with the Bank by December 31, 1979, and to use itsbest efforts to retain in its employ, after the project period, thepersons working as counterparts to the technical assistance (para 3.16);

(1) terms of reference for the technical assistance, the number andqualifications of the counterpart staff for the technical assist-ance and the dates at which SNC would make each counterpart staffmember available, and SNC's commitment to consult with the Bankon any other maintenance-related technical assistance over theproject period (para 3.17);

(m) SNC to establish, at the time of the issuance of the final reporton the first phase of the NTS, a list setting forth the paved,earth and gravel road sections for which detailed engineeringand economic studies would be done, and to furnish such list tothe Bank for its approval (para 3.19);

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(n) SNC to employ consultants, whose qualifications, experience andterms of conditions of employment would be satisfactory to theBank, to assist in carrying out the detailed engineeringand appropriate economic studies of selected road sections(para 3.20);

(o) the Government to provide SNC promptly, as needed, the funds,facilities, services and other resources required to carry outthe project in the three districts (para 3.22);

(p) SNC to reorganize its maintenance accounting system to show, fromJanuary 1, 1980 onward, itemized expenditures of routine andperiodic maintenance, minor improvements, rehabilitation,major improvements and construction (para 3.22);

(q) the Government (i) to provide, promptly as needed, the funds,facilities, services and other resources required to enable SNCto continue, after the project period, to maintain adequately theroads in the Districts of La Paz, Cochambamba and Santa Cruz, andto keep the maintenance of roads in the Districts other than thoseincluded in the Project at least at their present level; and (ii) toconsult the Bank by July 1, 1981 on the program for improvement andstrengthening of highway maintenance covering the entire territoryof Bolivia to be prepared with the help of the technical assistancesupplied under the project (para 3.22);

(r) tentative schedule for project implementation (para 3.25);

(s) the proposed contract for technical assistance to fall under theexception provided under Article 11 of Decree 13946 (para 3.26);

(t) procedures to select the firm for technical assistance, andGovernment commitment to the continuity of the counterpart staffthrough both technical assistance programs, in order to ensureproper coordination with the advance technical assistance (para 3.26);

(u) procurement procedures (paras 3.26-3.29); and

(v) the project implementation indicators to be monitored followingmethods satisfactory to the Bank and reported on annually(para 3.30).

5.02 The reorganization of SNC's supply and distribution system for spareparts for the three districts is a condition for disbursement for spare parts(para 3.14).

5.03 The availability of the SNC counterpart personnel to the projectmanager, to the equipment specialist, to the road maintenance specialist, andto the training specialist of the advance technical assistance for highwaymaintenance provided under Loan 1422-BQ is a condition for effectivenessof the loan (para 3.17).

5.04 The proposed project provides a suitable basis for a Bank loan ofUS$25 million equivalent to the Government of Bolivia. The loan would be fora term of 20 years, including a grace period of five years.

May 18, 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Freight Transported by Different Modes(1967-1974)

1 9 6 7 1 9 7 4

Ton-Km % Sub- % Ton-Km % Sub- %103 Total Total 103 Total Total

Road Transport 596,200 63.0 19.6 896,464 64.8 16.3

Rail Transport 293,600 31.1 9.7 396,000 28.6 7.2

River Transport 11,400 1.2 0.4 24,480 1.8 0.4 1

Lake Transport 31,400 3.3 1.0 31,700 2.3 0.6 O

Air Transport 13,300 1.4 0.4 35,378 2.5 0.6

Subtotal 945,900 100.0 31.1 1,384,022 100.0 25.1

Pipeline Transport

Crude Oil 1,923,000 - 63.1 3,747,000 - 68.1

Petroleum Products 176,000 - 5.8 376,000 - 6.8

TOTAL 3,044,900 - 100.0 5,507,022 - 100.0

Source: Ministry of Planning and Coordination

January 1978

- 37 -

TABLE 2.1

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Bolivian Road Network

A. Classification of the Road Network in km (1976)

Asphalt Gravel Earth Total %

Primary Roads 1,094 3,381 663 5,138 14Secondary Roads 79 1,633 2,227 3,939 10Local Roads - 1,817 27,066 28,883 76

TOTAL 1,173 6,831 29,956 37,960 100

% 3 18 79 100

B. Evolution of the Road Network in km (1965-1976)

Average AnnualYear Asphalt Gravel Earth Total Growth %

1965 587 8,020 13,279 21,8861966 587 8,095 14,514 23,196 5.991967 736 8,622 15,627 24,985 7.711968 736 10,568 13,892 25,126 0.561969 779 11,591 12,984 25,354 0.911970 950 11,640 13,047 25,637 1.121971 1,104 11,486 15,529 28,119 9.681972 1,140 6,551 29,009 36,700 30.52 1/1974 1,163 6,560 29,590 37,313 0.831975 1,166 6,559 29,831 37,556 0.651976 1,173 6,831 29,956 37,960 1.08

Average Rateof Growth1965-1971 11.1 6.2 2.6 4.3

Average Rateof Growth1972-1976 0.7 1.1 0.8 0.85

1/ An updating of road classification was done in 1972, no data available for 1973.

Source: SNC

March 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Road Density in Geographic Regions related to Area and Population

Geographic Area Population Roads Road DensityRegion2

Km2 % 1000 pop,. % Km % Km/Km2 Km/1000

Highlands 179,104 16.3 2,204.4 47.0 19,160 50.5 0.1070 8.69

Valleys 214,247 19.5 1,528.3 32.6 12,800 33.7 0.0597 8.38 1

Lowlands 705,230 64.2 955.0 20.4 6,000 15.8 0.0085 6.28 w

TOTAL 1,098,581 100 4,687.7 100 37,960 100 0.0346 8.10

Source: SNC andHugo Ossio Silva: "La Problematica Agropecuaria y Agroindustrial en el

Oriente Boliviano," Universidad Catolica, June 1977.

February 1978

toj

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Motor Vehicle Fleet 1967-1974

Vehicle Type 1967 1968 1969 1970 1971 1972 1973 1974 1975 1975

Automobiles 11,059 11,077 11,077 11,101 11,107 11,756 14,132 15,499 18,458

Vehicles owned by National-/and Foreign Governments 4,341 3,850 3,851 4,788 4,788 4,865 4,632 5,135 5,764

Station Wagons 3,334 3,587 3,585 3,585 3,262 3,262 3,610 4,076 5,017

Jeeps 2,627 2,868 2,808 2,808 4,289 4,289 4,554 5,012 6,083

Pick-up trucks 9,441 8,469 8,469 8,958 8,958 7,547 9,257 10,769 13,285

Total light vehicles 30,802 29,851 29,790 30,303 32,404 31,642 33,489 40,491 48,607 69.5

Trucks 11,465 12,950 12,950 12,950 13,434 13,434 13,589 15,084 17,510 25.0

Buses 1,830 2,224 2,224 2,224 2,513 2,513 2,854 3,135 3,819 5.5

Subtotal 44,097 45,025 44,964 45,477 48,351 47,583 52,268 58,410 69,936 100.0

Motorcycles-2/ 2,150 7,119 7,298 7,298 4,517 4,517 11,130 12,417 14,809

TOTAL 46,247 52,144 52,262 52,775 52,868 52,106 63,758 71,127 84,74 5

1/ Some of the vehicles owned by the National and Foreign Governments are trucks, buses or other vehicles.

2/ Figures given for 1967, 1971 and 1972 are not related to figures given for the other years.Permanence of some partial figures throught 1968-1972 makes then unreliable.

Source: Statistics Bureau - Department of Operations - National Traffic Directory.

March 1978

- 40 -

TABLE 2.4

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Distribution of Vehicles in the DifferentDepartments and Geographic Regions

Department Vehicles Z

La Paz 29,024 41.50

Oruro 4,721 6.75

Potosi 3,700 5.29

Subtotal Highlands 37,445 53.54

Cochabamba 13,617 19.47

Sucre 2,447 3.50

Tarija 2,858 4.09

Subtotal Valleys 18,922 27.06

Santa Cruz 13,288 19.00

Beni 281 0.40

Pando _ _

Subtotal Lowlands 13,569 19.40

TOTAL 69,936 100.00

Source: National Traffic Directory

March 1978

- 41.-

TABLE 2.5

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Gasoline and Diesel Fuel Consumption!/ 1967-1976(in cu. m)

Years Gasoline Diesel

1967 215.839 58.733

1968 239.289 69.863

1969 259.612 80.290

1970 270.883 85.875

1971 278.927 91.789

1972 292.256 100.988

1973 304.511 114.368

1974 321.197 135.454

1975 363.796 173.403

1976 385.598 207.711

Average Annual Rateof Increase 6.7 15.1

l Total retail sales

Source: Yacimientos Petroliferos Fiscales de Bolivia

March 1978

- 42 -

TABLE 2.6

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Average Daily Traffic (ADT) and Composition of Traffic

in the Three Project Districts of La Paz, Cochabamba, and Santa Cruz (1977)

Road Composition in %Length Light Heavy

Road Type km ADT Vehicles Buses Vehicles

Asphalt Concrete 50 3,324 35 9 56

Surface Treated 1,010 629 31 15 54

Paved 1,060 756 32 14 54

High Traffic Gravel 806 184 21 15 64

Medium Traffic Gravel 1,154 50 30 16 54

Low Traffic Gravel 1.414 8 32 6 62

Gravel 3,369 62 24 15 61

High Traffic Earth 1,324 90 19 3 78

Medium Traffic Earth 1,790 15 38 7 55

Low Traffic Earth 7,227 3 27 7 66

Earth 10,341 17 23 4 73

TOTAL 14,770 89 29 13 58

Source: SNC and Mission Estimates

March 1978

- 43 -

TABLE 2.7

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Vehicle Dimensions and Weights

(In meters and metric tons)

Maximum width 2.5

Maximum height 4.0

Maximum length

2 axles 11.0

3 axles and more 12.2

semi trailers 15.3

other combinations 18.3

Maximum load

Single axle 11.0

tandem axle 14.5

Source: Law 11771 of September 9, 1974

March 1978

- 44 -

TABLE 2.8

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Personnel of the Servicio Nacional de Caminos (1977)

Central ProvincialCategory Office Divisions Total

1. EngineeringService Chief and Deputy 2 - 2Department Managers and Deputies 10 - 10Project and District Engineers 5 26 31Resident Engineers - 82 82Soil Engineers 4 - 4Mechanical Engineers 2 8 10

Subtotal - Engineers 23 116 139

Engineering - Technicians __4 79 113Total Engineering 57 1eF 252

2. AdministratienDepartment Managers and Deputies 3 - 3Lawyers and Accountants 7 - 7Employees 93 297 390Communications 5 10 15

Total Administration Personnel IW 307 513

3. OperationRoad Supervisors 113 113Mechanics and Operators 61 1,075 1,136Drivers 26 496 522Laborers 76 440 516

Total Operation Personnel 163 2,124 2.287

TOTAL Personnel 328 2,626 2,954

Source: SNC

March 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Geometric Design Norms for Highways

Max. Gradients (%) I Minimum

Category and in straight align. Shoulder

Future up to 1000m above Minimum Sight I Width Rolling

Ttaffic Design Minimun Sea-level Distances each Surface

Volume Speed Radius side Width

(ADT) Topography KpH (m) Desirable Maximum Braking Passing (m) (m) Type of Pavement

Category I Level 100 450 3 4 180 800 3.00 7.30 Asphalt Concrete

1500-3000 (Veh) Hilly 90 350 4 6 150 600 2.50 or better

Mountainous 60 120 5 6 80 370 1.50

Category II Level 100 450 3 4 180 800 2.00 7.30 Asphalt Surface

500-1500 (Veh) Hilly 80 250 4 5 120 540 1.50 7.30 Treatment or

Mountainous 45 60 6 7 55 230 1.50 7.00 better -

Category III Level 90 350 4 5 150 600 1.50 7.00 Asphalt Surface

200- 500 Hilly 70 170 5 6 100 460 1.15 6.70 Treatment

Mountainous 40 50 7 8 45 160 1.15 6.70

Category IV Level j 80 170 4 5 120 540 _._ 7.00 tabilizedgravel

50 200 (Veh) Hilly i 60 100 5 6 80 370 _._ 6.70 surface

Mountainous 40 40 7 8 40 160 _._ 6.70

Category V Level 50 80 5 6 i 60 270 -. _ 6.00 Stabilized eart

10- 50 (Veh) Hilly 40 50 6 8 40 160 _._ 6.00 I surface

Mountainous 30 25 7 9 25 150 _._ 6.00

Special Remarks

1. Traffic volumes refer to designed future volumes

2. For traffic densities over 3000 veh/day, special characteristics will be determined through capacity calculations.

3. For densities under 10 veh/day, an overall platform width of 4.50 m will be taken, and other characteristics

adopted according to each case.4. Gradients are reduced by 0.5% between 1,000 and 3,000 a.s.l. and by 1% in higher altitudes.

5. Maximal length with continous gradients shall be determined with the criteria of not reducing speeds more

than 25 kph, especially for heavy vehicles.6. Maximum superelevation is 10%, and it is to be established in relation to design speed and

radius chosen.

7. Additional width in curves will be considered after analysis of traffic composition.

Source: SNCMarch 1978

BOLIVIA

HIGRWAY MAINTENANCE PROJECT

Highway Expenditures and Funding (1971-1976)

(In 1976 million B$)

AverageMillion Million

1971 1972 1973 1974 1975 1976 BR$ US$

A. Expenditures

Construction 81.6 89.0 121.1 249.0 266.0 412.7 203.2 10.2Minor Improvements 53.4 71.9 37.5 28.0 27.0 31.4 41.5 2.1Maintenance 120.0 131.4 128.3 126.4 137.0 151.4 132.4 6.6Administration 21.7 25.6 24.5 20.7 29.1 43.9 27.6 1.4Others 1/ - - 1.4 28.0 19.0 222.1 45.1 2.2

TOTAL 2/ 276.7 317.9 312.8 452.1 478.1 861.5 449.8 22.5

B. Funding (Domestic and External)

Earmarked Funds (Road User Charges)Road User Tax (Trip Sheet) 13.7 14.0 10.3 7.9 8.6 8.3 10.5 0.5Highway Service (Prestacion Vial) 4.8 4.4 3.1 2.9 2.5 2.5 3.4 0.2Customs from Agricultural Products 5.5 6.6 4.5 2.6 4.0 3.5 4.4 0.2Fuel Sales Tax 37.5 32.0 2.3 2.3 - - 12.3 0.6

Subtotal Earmarked Funds 61.5 57.0 20.2 15.7 15.1 14.3 30.6 1.5

BUDGET 180.0 254.3 290.3 360.0 403.5 540.9 338.2 16.9

Subtotal Domestic 241.5 311.3 310.5 375.7 418.6 555.2 368.8 18.4

USAID 6.7 4.5 0.1 - - - 1.9 0.1IDB - 17.0 29.9 192.1 184.7 133.4 92.8 4.6Andean Pact - - - 5.7 11.2 0.5 2.9 0.2

Subtotal External 6.7 21.5 30.0 197.8 195.9 133.9 97.6 4.9

TOTAL Funding.2/.3/ 248.2 332.8 340.5 573.5 614.5 689.1 466.4 23.3

1/ Expenditures for buildings, plants, equipment and others2/ Differences between expenditures and funding are carried over from year to year3/ Average Funding 1971-1976: Earmarked Funds: 6%

Budget 73%External Financing: 23%

Source: SNCNarcb 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Road User Charges (1971-1976)

(in 1976 million B$)Average

Million Million1971 1972 1973 1974 1975 1976 B$ US$

Road User Tax 1/ 13.7 14.0 10.3 7.9 8.6 8.3 10.5 0.5(Trip-Sheet)

Highway Service 1/ 4.8 4.4 3.1 2.9 2.5 2.5 3.4 0.2(Prestacion Vial)

Customs from Agricultural 2/ 12.3 14.7 10.0 5.7 8.9 7.8 9.9 0.5Products

Driving Licenses 1.7 1.6 1.1 0.9 1.3 1.3 1.3 0.1Tax on Freight and Passenger 0.5 1.4 0.6 0.3 0.6 0.6 0.7 -

TransportTax on Used Vehicle Sales 10.0 20.4 23.5 27.8 44.9 40.2 26.1 1.3Vehicle Licenses 12.9 12.7 11.7 8.3 12.1 21.5 13.2 0.7Tires and Spare Parts Sales 14.0 14.4 19.1 14.7 15.0 16.0 15.5 0.8Tax

Tires and Tubes Custom Duties 20.0 20.7 20.8 16.5 15.6 15.5 18.2 0.9Vehicles Custom Duties 150.0 165.4 255.6 215.1 442.2 295.8 254.0 12.7Spare Parts Custom Duties 10.0 11.4 10.0 7.9 11.7 11.9 10.5 0.5Fuel Sales Tax 3/ 82.9 80.0 66.9 49.1 77.8 175.9 88.8 4.4

TOTAL 332.8 361.1 432.7 357.1 641.2 597.3 452.1 22.6

1/ 100% going to SNC.2/ Only 45% going to SNC.3/ Only partial participation to SNC until 1973, none thereafter.

Source: SNC and Mission Estimates

March 1978

- 48 -

TABLE 2.12

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Road Maintenance Program 1976

Length of Amount Spent Percen- Average Cost perRoads, Km in US$1,000 tage . km/yr in US$

PermanentMaintenance 7,700 7,058 72.3 916.62

TemporaryMaintenance 7,540 733 7.5 97.21

OccasionalMaintenance 22,070 294 3.0 13.32

Total RoadMaintenance 37,310 8,085 82.8 216.70

Minor RoadImprovements -- 1,675 17.2 --

TOTAL 37,310 9,760 100.0 261.60

Source: SNC

March 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

SNC Maintenance Equipment and Vehicles Age and Condition

Age Group in Years-,-/ Total Average Condi lion

Equip ent Type 1-5 6-10 11-15 16-20 21-25 Units Age Good Repair Scrap

Jeeps 21 11 - - - 32 3.8 15 14 3

Pick-up Trucks 51 62 - - 2 115 6.0 40 41 34

Wagoneers 17 15 14 - - 46 7.8 16 20 10

Busses 3 - 4 1 l 8 8.3 3 4 1

Flat-bed Trucks 50 36 18 - 2 106 6.1 48 34 24

Dump Trucks 68 144 68 - - 280 7.7 63 130 87

Workshop Trucks 3 2 - - - 5 4.2 3 2 -

Tractor Trucks 1 2 1 1 1 6 13.7 1 3 2

Water Tank Trucks g 7 9 _ _ 25 7.3 7 10 8

Water Sprinkler Trucks 3 12 - - - 15 7.4 3 9 3

Asphalt Distributor 3 1 1 - 1 6 17.7 4 1 1

Asphalt Tanker 2 1 - _ _ 3 3.7 2 1 -

TOTAL Vehicles 231 293 115 1 7 647 6.9 205 269 173

Motorgraders 84 54 22 11 30 201 8.9 70 72 59Tractors 62 35 38 - 7 142 7.4 51 61 30

Front-end Loaders 37 6 18 13 - 74 8.1 28 21 25

Cranes 1 - - - 2 3 14.3 1 - 2

Compactors 8 11 - - 19 6.5 4 11

Compressors 15 20 18 - - 53 8.7 8 27 18

CrushinR Plant - - - I 19.0 1

TOTAL Construction 207 126 96 25 39 493 8.3 162 185 146

EquipmentTOTAL 438 419 211 26 46 1,140 7,5 367 454 319

Percentage 38.4 36.8 18.5 2.3 4.0 1D0 _ 32.2 39.8 28.0

1/ Most of this equipment was purchased with foreign financing and its procurement has been concentrated in certain years:

Years Units Years Units - Vears Units1956 61 1968 349 1974 76

1964 170 1971 47 1975 2591976 80

2| Includes minor repair and overhaul3/ Equipment to be scrapped 1977-1981

Source: SNC and Hiaiaion Estimates

March 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Representative Road Links and ADT 1979 in the Three Districts

Type of ADT La Paz Cochabamba Santa Cruz TotalSurface Link-l Range Lenl.th ADT Len th ADT Length ADT Length AJDT

(Km) (K~Om) (Km)

Asph. Concr. ACO1 >500 - - 104 704 50 4,779 154 2,027Surf. Treatm. STO1 >500 195 842 284 989 434 1,161 913 1,037Surf. Treatm. ST02 <500 38 170 97 322 - - 135 279

Subtotal: Paved 233 732 485 794 484 1,535 1,202 1,080

Gravel GROl >200 203 278 39 491 41 297 283 310 1Gravel GRO2 100-199 319 162 106 180 93 184 518 170 @Gravel GRO3 50- 99 105 98 220 94 228 70 553 85 CGravel GRO4 20- 49 540 38 37 29 24 32 601 37Gravel GR05 1- 19 754 11 844 8 470 17 2,068 11

Subtotal: Gravel 1,921 77 1,246 54 856 63 4,023 67

Earth EA01 >30 154 74 38 69 1,132 113 1,324 107Earth EA02 10- 29 967 26 150 23 673 18 1,790 23Earth EA03 1- 9 2,388 5 1,087 5 3,411 3 6,886 4

Subtotal: Earth 3,509 14 1,275 9 5,216 29 10,000 21

TOTAL 5,663 65 3,006 154 6,556 145 15,225 117

1/ Acronym of Links are explained on Table 3.2, page 4

Source: SNC and Mission Estimates

March 1978

51 - TABLE 3.2

Page 1 of 4

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Analytical Network Inventory 1,

DISTRICT LA PAZ

PAVED ROADS GRAVEL ROADS EARTH ROADS

ROAD SYSTEM: LA PAZ ROAD SYSTEM: LA PAZ ROAD SYSTEM: LA PAZ

LINK STlL: EL ALTO-SICASICA 195.0 KM LINK GRIL: R.SEC-DES UND-YO 203.0 1M LINK EAlL: PTEVILLA-COROICO 154.0 KM

SECTION NUMBER ____1_ SECTION NUMBER 1 2 SECTION NUMBER 1_

Start Station (km) 0.0 Start Station (km) 0.0 0,0 Start Station (km) 0.0

End Station (km) 0.0 End Station (km) 0.0 0.0 End Station (km) 0.0

TERRAIN TERRAIN TERRAIN

Topography Flat Topography Ond Moun Topography Moun

Ground Cover Scar Ground Cover Scar Dens Ground Cover Dens

Altitude (m) 3900. Altitude (m) 3900. 2600. Altitude (m) 1500.

SOIL SOIL SOIL

Soil Type Good Soil Type Good Medm Soil Type Good

Subgrade CBR 20.0 Subgrade CBR 1.0 1.0 Subgrade CBR 1.0

WEATHER WEATHER WEATHER

Annl Rainfall (mm) 622. Annl Rainfall (mm) 622. 1332. Annl Rainfall (mm) 1332.

Seas Lengths (Mos) Seas Lengths (Mos) Seas Lengths (Mos)

Dry 8.0 Dry 12.0 12.0 Dry 12.0

Wet 4.0 Wet 0.0 0.0 Wet 0.0

Regional Factor 0.00 Regional Factor 0.00 0.00 Regional Factor 0.00

ROAD GEOMETRICS ROAD GEOMETRICS ROAD GEONETRICS

Geometric Standard Fund Geometric Standard Fund Low Geometric Standard Low

Length (km) 195.0 Length (km) 119.0 84.0 Length 154.0

Surface Width (m) 7.0 Surface Width (i) 7.0 4.5 Surface Width (m) 4.0

Shoulders Width (m) 1.5 Shoulders Width (m) 0.5 0.0 Shoulders Width (m) 0.0

Road Rise (m/km) 30.0 Road Rise (/lkm) 20.0 50.0 Road Rise (m/km) 80.0

Road Fall (m/km) 30.0 Road Fall (m/km) 20.0 50.0 Road Fall (m/km) 80.0

Curvature (deg/km) 50.0 Curvature (deg/km) 90.0 300.0 Curvature (deg/km) 300.0

SURFACING SURFACING SURFACING

Surface Standard SFTL Surface Standard GRVL GRVL Surface Standard ERTL

Surface Material SFTL Surface Material GRVL GRVL Surface Material ERTL

Surf. Thickness (mm) 170. Surf. Thickness (mi) 150. 100. Surf. Thickness (mm) 0.

Shoulder Material Grva Shoulder Material Shoulder Material

Shldr Thkness (mm) 170. Shldr Thkness (mm) 0. 0. Shldr Thkness (smi) 0.

Structural Number 0.90 Structural Number 0.00 0.00 Structural Number 0.00

Mod Structural Number 2.60 Mod Structural Number ***** ***** Mod Structural Number

ROUGHNESS (MM/KM) ROUGHNESS (MM/KM) ROUGHNESS (MM/KM)

Dry 2500. Dry 15875. 12410. Dry 12000.

Wet 2500. Wet 0. 0. Wet 0.

RUT DEPTH (MM) RUT DEPTH (MM) RUT DEPTH (MM)

Dry 0. Dry 30. 40. Dry 30.

Wet 0. Wet 0. 0. Wet 0.

LOOSENESS (MM) LOOSENESS (MM) LOOSENESS (N)

Dry ***** Dry 3. 3. Dry 4.

Wet ****** Wet 0. 0. Wet 0.

MOISTURE CONTENT (%) MOISTURE CONTENT (%) MOISTURE CONTENT (%)

Dry ***** Dry 3.0 4.0 Dry 4.0

Wet ***** Wet 6.0 6.0 Wet 6.0

CRACKING (SQ M/nM) 300.0 CRACKING (SQ M/KM) ****** ****** CRACKING (SQ M/KM)

PATCHING (SQ M/KM) 0.0 PATCHING (SQ N/KM) ****** ****** PATCHING (SQ M/KM)

SERV INDEX (PSI) ***** SERV INDEX (PSI) ***** ***** SERV INDEX (PSI)

SURFACE HISTORY SURFACE HISTORY SURFACE HISTORY

Years Since: Years Since: Years Since:

Construction 0 Construction 0 0 Construction 0

Last Chip Seal 0 Last Chip Seal 0 0 Last Chip Seal 0

Equiv. Axle Loads Equiv. Axle Loads Equiv. Axle Loads

(000,000'S) Since: (000,000'S) Since: (000,000'S) Since:

Construction 0.00 Construction 0.00 0.00 Construction 0.00

Last Chip Seal 0.4 Last Chip Seal 0.0 0.0 Last Chip Seal 0.0

1/ Acronyms of Links are explained on page 4

Source: SNC and Mission Estimates

March 1978

TABLE 3.2Page, 2 of 4

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Analytical Network Inventory 1/

DISTRICT LA PAZ

r A V E DR OA S DYAV RADS RRL RUN

ROAD SYSTI: COCILUAM8A ROAD SYSTEM COCHARAUBA ROAD SYSTIM: COCHAR&NMA ROAD SY5TUI: COCHAoAIOALINK ACIC: QUTLLAC-CONPITAL 104.3 KM LINK STlC: COCHARRA-EPIZANA 284.0 EK LINK GRiC: SIBERIA 39.3 KM LIREK taC INOTEPVUCO-CONDA 38.0 EN

SECTION NUMER SECTION NUNBER ______1 SECTION NWMBER 1 SECTIO NUMBER

Start Station (km) 0.0 Start Station (km) 0.0 Start Station (km) 0.0 Start Station (km) 5.oEnd Station (km) 104.3 End Station (km) 0.0 End Station (km) .0 End Station (km) 0.0

TERRAIN TERRAIN TERRAIN NOUN TERRAINTopography MtDN Topography MOUN Topography NOUN Topography ONDGround Cover SCAR Ground Cover MEDN Ground Cover DENS Ground Cover NEDMAltitude (m) 2700. Altitude (m) 2900 Altitude (a) 2800. Altitude (a) 2600.

SOIL SOIL SOIL SOILSoil Type MEDM Soil Type MEDM Soil Type POOR Soil Type POORSubgrade CBR 8R. Subgrade CBR 9.0 Subgrade CBR 1.0 Subgrade CbR 1.0

WEATHER WEATHER WEATHER WEATHERAnnl Rainfall (mm) 541. Anal Rainfall (n) 541. Anal Rainfall (a) 1500. Annl Rainfall (am) 541.Seas Lengths (Mos) Seas Lengths (Mos) Sas Lengtha (Moo) Seas Lengths (Kos)Dry 7.0 Dry 8.0 Dry 12.0 Dry 12.0Wet 5.0 Wet 4.0 Wet 0.0 Wet 0.0Regional Factor 0.00 Regional Factor 0.00 Regional Factor 0.00 Regional Factor 0.00

ROAD GEOMETRICS ROAD GEONETRICS ROAD GEOMETRICS ROAD GEOMETRICSGeometric Standard FUND Geometric Standard FUND Geometric Standard FP13M Geometric Standard LOWLength (km) 104.3 Length (km) 284.0 Length (km) 39.3 Length (km) 38.0Surface Width (m) 7.3 Surface Width (n) 5.5 Surface Width (a) 8.3 Surface Width (n) 35Shoulders Width (a) 2.0 Shoulders Width (a) 1.0 Shoulders Width (a) 0.3 Shoulders Width (n) 0.0Road Rise (n/3m) 60.0 Road Rise (n/k3) 60.0 Road Rise (m/km) 50.0 Road Rise (r/km) 50.0Road Fall (m/km) 60.0 Road Fall (rn/km) 60.0 Road Fall (m/km) 50.0 Road Fall (n/k3) 50.0Curvature (dog/km) 150.0 Curvature (deg/km) 100.0 Curvature (deg/km) 150.0 Curvature (deg/km) 180.0SURFACING SURFACING SOUACING SURPACING

Surface Standard ACOC Surface Standard SFTC Surface Standard GRVC Surface Standard ERTCSurface Material ACOC Surface Material SFTC Surface Material GRVC Surface Material ERTCSurf. Thickness (mo) 60. Surf. Thickness (ms) 20. Surf. Thickness () 150. Surf. Thickness () Shoulder Material GRVA Shoulder Material GRVA Shoulder Naterial Shoulder MaterielShldr Thkness (=) 50. Shldr Thkness (m) 20. Shldr Thkness (m) Shldr Thkneu s (mm) osOOStructural NHaber 3-00 Structural Nunber 0.90 Structural Number 0.00 Nod Structural NuRberMod Structural Nunber 4.05 Mod Structural Number 2.05 Mod Structural Number *ases

ROUGItNESS (MM/KM) ROUGHNESS (1M/KM) ROUGHNESS (MM/KE) ROUGHNESS (MM/EM)Dry L500. Dry 2500. Dry 15875. Dry 12410.Wet 1500. Wet 2500. Wet 0 Wet 0

RUT DEPTN (MM) RUT DEPTH (MM) RUT DEPTH (MM) RUT DEPTH (rM)Dry D. Dry 0. Dry 50. 40.Wet o. Wet 0. Wet O Wet 0.

LOOSENESS (IMN) LOOSENESS (IM) LOOSENESS (M) LOOSENESS (M)Dry ass*s Dry Dry 3Dry 3.Wet assess Wet Wet 0. Wet 0.

MOISTURE CONTENT (M) NOISTURE CONTENT (M) NOISTURE CONTENT (Z) DRy )Dry asses Dry ***** Dry 6.0 Dry 3.0Wet as**s Wet *** Wet 6.0 Wet 6.0

CRaCXING (SQ M/KM) 30.0 CRACKING (SQ M/IEI) 300.0 CRACKING (SQ N/KE) ****** CRACKING (SQ M/KE) ***PATCHING (SQ M/KE) 0.0 PATCHING (SQ N/KM) 1.4 PATCHING (SQ N/KM) ****** PATCHING (SQ M/KM) assessSERV INDEX (PSI) asses SERV INDEX (PSI) * SERV INDEX (PSI) SERV INDEX (PSI) asses

SURFACE HISTORY SURFACE HISTORY SURFACE HISTORY SURFACE HISTORYYears Since: Years Since: Years Since: Years Since

Construction 0 Construction Conetruction 0 Cst Chip Seal 0Last Chip Seal ° Last Chip Seal 0 Last Chip Seal 0 Eqiv Axle LoadsEquiv. Axle Loads Equiv. Axle Loads Equiv. Axle loLoads(000,000 S) Since: (000,000'S) Since: (000,000'S) Since: (000,000'S) Since:Construction 0.00 Construction 0.00 Construction 0.00 Construction 0.00Last Chip Seal 0.4 Last Chip Seal 0.2 Last Chip Seal 0.0 Last Chip Seal 0.0

V/ Acronyns of Links are explained on page 4

Source; SNC and Mission Estimates

March 1978

- -3 TABLE 3.2Page 3 of 4

BOLIVIA

uIGMAY MAINtUWI PROJECr

Analytical Netaork Inventor,

DISTRICT SANTA CRUZ

PA V D R O A D S GR A V E L R O A D S I A R T H R O A D S

IOAD SYSTEM: SANTA CRUZ ROAD SYSTEM: SANTA CRUZ ROAD SYSTEM: SANTA CRUZ WIlO SYSTEM: SANTA CRUZ

LIX ACS: STA. CRUZ-GUAB87A 50.3 EM LINK STlS: MAIR-STCR CUA-YA 433.

8EM LINK GRIS: CAMIRI-BOY 41.0 KM LINK EAS: HAIR-PFO STAROSA 1132.0 rM

SECTION NUMBER _ SECTION NUMBER _ -1I 2 SZSlIm -S U1 ESECTION _Am- 1 _2

Start Station (kI) 132.6 Start Station (kI) 0.0 0.0 Start Station (k) 0.0 Start Station Cka) 0.0 0.0End Station (ks) 182.9 End Station (km) 0.0 0.0 End Station (ks) 0.0 End Station (kI) 0.0 0.0

TERRAIN TRAiN TERRAIN TERRAINTopography FLAT Topography uON ?L& Topography OD0 Topography OND FLATGround Cover MEDM Ground Cover DENS DIN Ground Cover MEDM Ground Cover MtDM DENSAltitude (a) 350. Altitude (m) 1000. 400. Altitude (m) 700. Altitude (a) 1800. 330.

SOIL SOIL SOIL SISoil Type POOR Soil Type MEDM POOR Soil Type POOR SoilPOORSubgrade CBR 8.0 Subgrade CbR 15.0 8.0 Subgrade CBR 1.0 Subgrade CBR 1.0 1.0

'YA'THE ETER WEATHER WEATHERATol Rainfall Cm) 1243. Annl Rainfall () 1243. 1243. Annl Rainfall (m) 800. Anni Rainfall (m) 654. 1332.Seas Lengths (bos) Seas Lengths (Moe) Seas Lengths (Moe) 12.0 Seas Lengths (Moe)Dry 6.0 Dry' 7.0 7.0 Dry 120Dry 12.0 12.0Wet 6.0 Wet 5.0 5.0 Wet 0.0 Wet 0.0 0.0Regional Factor o.oe Regional Factor 0.00 0.00 Regional Factor 0.00 Regional Factor 0.00 0.00

ROAD GEOHETRICS ROAD GEOMETRICS ROAD GEONETRICS ROAD GEOMETRICSGdometric Standard FUND Geometric Standard 2M FUND Geometric Standard 4FUND Geomtric Sta) dard LO L.5

Length (km) 50.3 Length (km) 60.8 173.0 ~~Length (Is) 4. wSh(. 90 15.surface Width (m) 7.3 Surface Width (m) 5.1 6.5 Surface Width (7) * Surface Width (m) 35 45Shoulders Width (C) 3.0 Shoulders Width (m) 1.2 1.5 Shoulders Width (a) ° O Shoulders Width (i) 7° ° URoad Rice (u/Is) 15.0 Road Rise (u/Is) 50.0 30.0 Road Rice (rn/Is) 6DORoad RLise (rn/Is) 0 00Road Fall (n/kI) 15.0 Road Fall (r/kI) 50.0 30.0 Road Fall (r/kI) 60.0 Road Fall (m/kI) 70.0 20.0Curvature (deg/kI) 10.0 Curvature (des/kI) 150.0 li.0 Curvature (deg/kI) 300.0 Curvature (dg/Is) 300.0 300.0

SuRFACDC MAC m c SWUACLICSurface Standard ACOS Surface Standard SFTS WiTS Surface Standard GRVS Surface Standard ERTS ERTSSurface Material ACOS Surface Material SFTS srms Surface Material GRVS Surface Material ERTS ERTSSurf. Thickness (_) 76. Surf. Thickness (am) 20. 20. Surf. Thicknecs (am) 100. Surf. Thickness (mm) 0. 0.Shoulder Material GRVA Shoulder Material GRVA Gm Shoulder Material Shoulder MaterialShldr Thkness (on) 30. Shldr Thkness (on) 20. 240 Shldr Thkness (m) 0. Shldr Thkness (m) o. O.Structural Number 5.00 Structural Number 0.90 0.90 .Structural Number 0.00 Structural Number 0.00 0.00Mod Structural Number 6.05 Mod Structural Number 2.42 195 Nod Structural Number ***** Mod Structural Numbera**** *****

ROUGHNESS (MM/KEG) ROUGHNESS (MM/RM) ROUGHNESS (MM/DC) ROUGHNESS (MM/KM)Dry 1500. Dry 3400. 2500 Dry 8000. Dry 7750. 8500.Wet 1500. Wet 3400. 250. Wet 0. Wet 0. 0.

RUT DEPTH (MM) RUT DEPTH (MM) RUT DEPTH (HM) RUT DEPTH (MM)Dry 0. Dry 0. 0. Dry 40. Dry 40. 40.Wet 0. Wet 0. 0. Wet 0. Wet 0. 0.

LOOSENESS (MM) LOOSENESS (MM) LOOSENESS (M) LOOSENESS (M)Dry **** Dry ***** ***** Dry 3. Dry 4. 4.Wet scans Wet **asas assess Wet 0. Wet 0. 0.

MOISTURE CONTENT (X) MOISTURE CONTENT (R) MOISTURE CONTENT (X) MOISTURE CONTENT (i)Dry ***** Dry Dry 3.0 Dry 4.0 4.0Wet a* Wet Wet 6.0 Wet 6.0 6.0

CRACKING (SQ M/DC) 0.0 CRACKING (SQ M/DM) 600.0 300.0 CRACKING (SQ M/KD) *** CRACKING (SQ M/DC) *ea*es ***PATCHING (SQ M/DC) 0.0 PATCHING (SQ M/DM) 1.4 0.0 PATCHING (SQ M/DC) * PATCHING (SQ M/KD) *SERV INDEX (PSI) ***** SERV INDEX (PSI) * SERV INDEX (PSI) * SEPV INDEX (PSI) *

SURFACE HISTORY SURFACE HISTORY SURFACE HISTORY SURFACE hISTORYYears Since: Years Since: Years Since: Years Since:

Construction 90 Construction 0 0 Construction 0 Construction 0 0Last Chip Seal 0 Last Chip Seal 0 0 Last Chip Seal 0 Last Chip Seal 0 0

Equiv. Axle Loads Equiv. Axle Loads Equiv. Axle Loads Equiv. Axle Loads(000.000'S) Since: (000,000'S) Since: (000,000'S) Since: (000,000'S) Since:Construction 0.00 Construction 0,22 0 00 Construction 0.00 Construction 0.00 0.00Last Chip Seal 0.0 Last Chip Seal 0.4 0.2 Last Chip Seal 0.0 Last Chip Seal 0.0 0.0

1/ Acronyns of Links are explained on page 4

Source: SNC and Mission Estimates

March 1978

- 54 -

TABLE 3.2Page 4 of 4

1. Acronyms of Links

a) First two letters represent type of surface:AC = Asphalt ConcreteST = Surface TreatmentGR = GravelEA = Earth

b) Third letter represents District:L = La PazC = CochabambaS = Santa Cruz

c) Last number represents decreasing ADT ranges according toTable 3.1.

2. Estimation of Cost Adjustment Factors - CAF (Table 3.3)

a/ Cost Adjustment Factors (CAF) for the "Do Nothing" Policy inCochabamba are 1.00, except for earth roads maintenance activities,where lower costs compared to gravel roads are reflected by lowerCAF.

b/ "Do Nothing" CAF for La Paz and Santa Cruz reflect relative costvariations for each activity as compared to Cochabamba.

c/ CAF for improved activities in each district result from multiplyingthe corresponding "Do Nothing" CAF by two factors: the firstreflecting the increased cost (if any) of the improved maintenanceoperation (for instance, added cost for watering and compaction ingravel road grading operations or increased cost for crushing orscreening and mixing in gravel resurfacing), and the secondreflecting the net reduction in unit costs to be obtained by improvedproductivity and by reduction of overhead through the technicalassistance and the implementation of the project.

Source: SNC and Mission EstimatesMarch 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Maintenance Unit Costs and Cost Adjustment Factors(in April 1978 US$)

Total Costs Cost Adjustment Factorsl/Maintenance Activities Unit Financial Economic Without Program With Program

La Paz Cochabamba Santa Cruz La Paz Cochabamba Santa Cruz

Paved Roads

Patching m 4.09 4.04 0.95 1.00 1.10 0.86 0.90 1.00

Surface Treatment m 2 2.30 2.29 0.95 1.00 1.10 0.86 0.90 1.00

Overlaying m3 57.00 59.60 0.95 1.00 1.10 0.86 0.90 1.00

Rehabilitation km 27,660.00 28,085.00 0.95 1.00 1.10 0.86 0.90 1.00

Routine Maintenance 2/ km 180.00 172.07 0.90 1.00 1.10 0.86 0.95 1.05

Gravel Roads

Grading km 48.00 49.24 0.95 1.00 1.05 1.71 1.80 1.89tii

Spot Regravelling 3/ m3 6.00 5.94 0.90 1.00 1.25 1.00 1.12 1.40

Gravel Resurfacing m 3 4.30 4.47 0.90 1.00 1.20 1.38 1.53 1.84

Routine Maintenance 2/ km 135.00 129.32 0.90 1.00 1.10 0.86 0.95 1.05

Earth Roads

Grading km 48.00 49.24 0.76 0.80 0.84 0.68 0.72 0.76

Spot Gravelling 3/ m3 6.00 5.94 0.90 1.00 1.25 0.81 0.90 1.13

Routine Maintenance 2/ km 135.00 129.32 0.54 0.60 0.66 0.51 0.57 0.63

1/ Cost adjustment factors were estimated as explained in Table 3.2, page 4.2/ Includes culvert and ditch cleaning, yegetation control and .shoulder repairs.3/ Includes washouts and roadway repairs.

Source: SNC and Mission Estimates

March 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

A, VEHICLE DLSLPIPTIUNS VEHICLE CHARACTERISTICS AND COSTS

…------------------ …(in April 1978 US$)

NAME LIGHT VH MEDM,8US LARG.BUS MED,GS,T MED.DL.T HEAV.TRU

VEHICLE TYPE LI'DE A 5 5 5 5 5FIIEL TYPE GASOLINE GASOLINE DIESEL GASOLINE DIESEL DIESELBRAKE HORSEPOWER 135.0o 00 JO' 210.00 135 oo 130.00 276.0GROSS VEH wGHT (MET1?IC TONS) 2,3V 10.940 14.50 9,Jo 10.5O 17,50AXLE EQUIVALENCY FACTOR .o0 0.82 1.77 0,27 0.41 4.08

Be FINANCIAL COISTSma ----------------------------------------------

NEW VEHICLL 112100ov 30960.80 75756.00 1309 8,70 15791.60 57941,tOCOST/TIRE 67.5U 160.50 226.00 160,50 184.30 322,80MAINTENANCL LABOR CltST/HR 5.10 5.80 7.50 5,80 5.R0 7,50CREW COST/HR 1.30 1,70 2.00 1,70 1,70 2,00VALUE UF TIME/HR *.@0 00 Q. 0.00 0,.0 0.00 6,00ANNUAL OVERHEAD COSTS (T015 .00 9.00 0.00 0u00 0.00 0.00ANNUAL OVERHEAD COSTS

X (IF U1PEPATING COSTS, 15.00 20.00 20.00 20,00 20,00 20,00INTEREST RATE (Z) 23.oo 23.00 23.00 23.00 23,00 23,00

FUEL L LUBRICANTS (COST/LITREj PETROL _ ,08 DIESEL FUEL ; 0 07 ENGINE OIL c 0,60

Ci, ECONOIMIC C1JSTS----------------------------------------------- _

NEW VEHICLE 6221.40 2114u.40 67380.20 11277,20 13595,60 52773.50COST/TIRE 54.Ko 130.40 1t3.6U 13u,40 149.70 262,20MAINTENANCE LABOR C1OST/HR 5.$40 5.40 7.0u 5,40 5.40 7,00CREW CUST/HR 1.20 1.60 1.90 1,60 1,60 1,90

VALUE IJF TIME/HR *.o 0 .00 0.00 0,00 0.00 0,00ANNUAL OVERHEAD CO)STS (TUI *.0O 0.00 0.00 0 oO 0.00 0.00ANNUAL OVCRHEAD COSTS

X OF O)PELATJNG CO'STS, 15.0V 202.00 20. v ,uO 20 ,00 20,00INTEREST RATE (1) 11.vo 11.go 11.00 11,vO 11.00 11,OoRATIO UF SPARE PARTS

TO NEW VLHICLE COST .18R 0.88 0.88 0,8A 0.88 0,88

FUEL L LUBRILANTS (CLOST/LITRE) PLTROL 0.18 DIESEL FUEL ; 0,13 ENGINE OIL t 0,56

D, VEHICLE UTILIZATInN

AVERAGE NLIMBL'1 UtPASSENGEGIS PER VfHlC[L 3 23 37 It It 10

ANNUAL CREW HOIURS 15v@. 2400, 32u0. ?u0tj. 2000, 3200,ANNUAL ojPERATIN4G Hi OURS 500. 1200.o 2000u. luu0,. 1800, 20#00,ANNUAL KILIIMETERS DIIIVLN 25000, 36000, *9. 3 v0 60,909AV VEHICLE LIFE (YLARS) A, 7, 9. 8, 8,

Source: SNC and Bank Consultant

March 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Economic Vehicle Operatinq Costs with Proiect for 1982 for Selected Links

(In ADril 1978 US$ per Vehicle-km)

Link Light Vehicle Medium Bus Large Bus _ Medium Gasoline Truck Medium Diesel Truck Heavy Truck

La Paz

ST 2L 0.349 0.556 1.076 0.518 0.444 0.885GR lL 0.297 0.495 0.812 0.483 0.390 0.675EA 1L 0.356 0.552 0.979 0.648 0.501 0.718

-LCochabamba

AC 01 0.205 0.503 0.702 0.458 0.366 0.664GR 2C 0.297 0.549 0.903 0.484 0.410 0.822EA 2C 0.369 0.547 0.842 0.489 0.405 0.776

Santa Cruz

AC 1S 0.143 0.325 0.674 0.260 0.250 0.580GR 2S 0.311 0.542 0.904 0.476 0.404 0.822EA 2S 0.374 0.552 0.858 0.492 0.410 0.790

Source: SNC and Mission Estimates

March 1978

'A

- 58 -

TABLE 3.6Page l of 2

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Four Years Maintenance Prowrams in the Three Project Districts

A. Tentative Indicators for Deferred Maintenance

Maintenance Operations Second Firstper District and Total Semester Semester

1979 1980 1981 1982 1983

1. Pavement Maintenance, expressed inthousands sq m equivalent of patchingLa Paz 36 111 113 120 32Cochabamba 11 42 41 48 13Santa Cruz 13 47 46 52 15

Total Three Districts 60 200 200 220 60

2. Gravel Resurfacing, expressed inthousands cu m of gravel, and in (km)La Paz 48 (52) 120 (140) 156 (215) 192 (312) 84 (133)Cochabamba 19 (16) 48 ( 45) 62 ( 70) 77 (101) 34 ( 59)Santa Cruz 13 (16) 32 47) 42 ( 72) 51 (100) 22 ( 46)

Total Three Districts 80 84 200 232 260 357 320 313 140 238

B. Tentative Indicators for Current Maintenance (See Page 2)

C. Tentative Indicators for Equipment Management

Equipment Management Indicators Second Firstper Districts and Average Semester Semester

_____________ _____________ __________ __ 1979 1980 1981 1982 1983

1. Equipment Availability-/ (%)La Paz 54 55 58 62 65Cochabamba 55 56 59 62 65Santa Cruz 41 45 48 56 65Average Three Districts 50 52 55 60 65

2. Equipment Utilization (%)

La Paz 79 79 80 82 83Cochabamba 61 65 70 77 83Santa Cruz 70 72 75 79 83Average Three Districts 70 72 75 80 83

1/ Availability and Utilization as defined in Annex 2 Table 1.

Source: SNC and Mission Estimates

March 1978

- 59 -TABLE 3.6Page 2 of 2

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Four-Year Maintenance Programs in the Three Project Districts

B. Tentative Indicators for Current Maintenance

Maintenance Operations Second First

per District and Total Semester Semester1979 1980 1981 1982 1983

1. Pavement Maintenance, expressed inthousands sq m equivalent of patchingLa Paz 39 89 107 124 88

Cochabamba 12 34 40 49 37

Santa Cruz 14 37 43 55 40

Total Three Districts 65 160 190 228 165

2. Gravel Resurfacing, expressed inthousands cu m of gravel, and in (km)

La Paz 42 ( 46)i 70 ( 82) 54 ( 75) 41 ( 66) 30 C 47)Cochabamba 17 ( 14) 32 ( 30) 23 ( 26) 16 ( 21) 12 ( 21)

Santa Cruz 11 (.14)J 18 ( 26) 15 ( 26)|11 ( 22) 8 (17)Total Three Districts . 70 ( 74)1120 (138) 92 (127) 68 (109)150 ( 85)

3. Grading of unimproved gravel RoadsIn km (without watering andcompactionLa Paz 3,500 5,400 2,500 2,000 1,000Cochabamba 1,700 2,850 2,000 650 300Santa Cruz 1,400 2,550 1,600 650 300

Total Three Districts 6,600 10,800 6,100 3,300 1,600

4. Grading of Improved Gravel Roadsin km (with watering andcompaction)

La Paz 550 3,300 6,800 7,900 4,000Cochabamba 200 550 1,600 3,000 1,500Santa Cruz 150 350 1,000 1 800 900

Total Three Districts 900 4,200 | 9,400 12,700 6,400

5. Grading of Earth Roads in kmLa Paz 2,800 6,000 6,700 6,900 3,500

Cochabamba 1,300 2,460 2,700 2,900 1,500Santa Cruz 9,900 22,100 24,440 27,200 14,000

Total Three Districts 14,000 30,560 33,840 37,000 19,000

6. Gravel Roads Spot Regravellingin thousand cu m.

La Paz 90 190 210 233 114

Cochabamba 36 80 85 93 46

Santa Cruz 24 50 57 62 30

Total Three Districts 150 320 352 388 190

7. Earth Roads Spot Gravellingin thousand cu m.

La Paz 14 29 32 35 18

Cochabamba 5 10 11 12 6Santa Cruz 21 43 47 53 26

Total Three Districts 40 82 90 100 50

Source: SNC and Mission Estimates

March 1978

- 60 -

TABLE 3.7

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

"Without" Project Road Maintenance Standards

MAINTENANCE ACTIVITY UNIT

Standard Applicable toAsphalt ConcreteLa Paz Links: None Patching sq.m Patch 10% of unpatched cracks

but not more than 100 sq.m/km/yr

Cochabamba Links:AClC 1/ Includes drainage, vegetation,

Routine Maintenance km shoulder, and miscellaneousSanta Cruz Links: activities

AClS

Standard Applicable toSurface TreatedLa Paz Links: STlL, Patching sq.m Patch 10% of unpatched cracks

ST2L but not more than 100 sq.m/km/yr

Cochabamba Links:None Includes drainage, vegetation,

Routine Maintenance km shoulder and miscellaneousSanta Cruz Links: activities

None

Standard Applicable toGravel RoadsLa Paz Links: GR1L, Grading km Grade every 7000 vehicle passesGR2L, GR3L, GR4L, GR5L to 9000 mm/km initial roughness

Cochabamba Links: GR1C Spot regravelling cu.m Replace 20% of gravel loss butGR2C, GR3C, GR4C, GR5C not more than 20 cu.m/km/yr

Santa Cruz Links: GRlS, Gravel resurfacing cu.m Resurface when surface thicknessGR2S, GR3S, GR4S, GR5S 50 mm using latr gravel to a

restored thickness of 100 mm

Routine Maintenance km Includes drainage, vegetation,shoulder and miscellaneousactivities

Standard Applicable toEarth RoadsLa Paz Links: EAlL, Grading km Grade every 11,000 vehicleEA2L, EA3L passes

Cochabamba Links:EAlC, EA2C, EA3C Spot regravelling cu.m Replace 0.0 cu.m/km/yr

Santa Cruz Links:EAlS, EA2S, EA3S Routine Maintenance km Includes drainage, vegetation,

shoulder and miscellaneousactivities.

1/ Acronyms of Links are explained in Table 3.2, page 4

Source: SNC and Mission Estimates

March 1978

- 61 -

TABLE 3.8

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

"With" Project Road Maintenance Standards

MAINTENANCE ACTIVITY UNIT STANDARD

I. Standard Applicable to Asphalt ConcreteLa Paz Links: None Patching sq.m Patch 90. 1 of unpatched cracksCochabamba Links: AC1C 1/ Surface Dressing sq.m Surface dress when unpatched cracks

exceed 30. % road surface area

Santa Cruz Links: AClS Routine Maintenance km Includes drainage, vegetation, shoulder,and miscellaneous activities

II. Standard Applicable to Surface Treated(a) La Paz Links: STlL, ST2L Patching sq.m Patch 90. % of unpatched cracks

Cochabamba Links: None Surface Dressing sq.m Surface dress when unpatched cracksexceed 30. % road surface area

Santa Cruz Links: None Routine Maintenance km Includes drainage, vegetation, shoulder,and miscellaneous activities

(b) Cochabamba Links: STIC, ST2C Patching sq.m Patch 10. % of unpatched cracks but notmore than 100 sq.m/km/yr

Santa Cruz Links: STlS Routine Maintenance km Includes drainage, vegetation shoulder,and miscellaneous activities

III. Standard Applicable to Gravel Roads(a) La Paz Links: None Grading km Grade every 15,000 vehicle passes to

5,000 mm/km initial roughnessCochabamba Links: GR1C Spot Regravelling cu.m Replace 20. % of gravel loss but not

more than 20 cu.m/km/yrSanta Cruz Links: GR1S, GR2S Gravel Resurfacing cu.m Resurface when surface thickness is

60 mm using latr. gravel to a restoredthickness of 120 mss

Routine Maintenance km Includes drainage, vegetation, shoulder,and miscellaneous activities.

(b) La Paz Links: GR1L, GR2L, GR3L, Grading km Grade every 11,0)0 vehicle passes toGR4L 2/ 5,000 mm/km initial roughness

Cochabamba Links: GR2C Spot Regravelling cu.m Replace 30. % of gravel loss but not morethan 50 cu.m/km/yr

Santa Cruz Links: GR3S 2/ Gravel Resurfacing cu.m Resurface when surface thickness is 60 mmusing latr. gravel to a restored thicknessof 120 mm

Routine Maintenance km Includes drainage, vegetation, shoulder,and miscellaneous activities

(c) Cochabamba Links: GR3C, GR4C 2/ Grading km Grade every 7,000 vehicle passes to

5,000 mm/km initial roughnessSpot Regravelling cu.m Replace 30% of gravel loss but not more

than 50 cu.m/km/yrGravel Resurfacing cu.m Resurface when surface thickness is 60 mm

using latr. gravel to a restored thicknessof 120 mmn

Routine Maintenance km Includes drainage, vegetation, shoulder,and miscellaneous activities

IV. Standard Applicable to Earth Roads(a) La Paz Links: EAlL Grading km Grade every 4,000 vehicle passes

Cochabamba Links: EA1C, EA2C Spot Regravelling cu.m Replace 20 cu.m/km/yrSanta Cruz Links: EAIS Routine Maintenance km Includes drainage, vegetation, shoulder,

and miscellaneous activities

(b) La Paz Links: EA2L, EA3L Grading km Grade every 1,500 vehicle passesCochabamba Links: EA3C Spot Regravelling cu.m Replace 20 cu.m/km/yrSanta Cruz Links: EA2S, EA3S Routine Maintenance km Includes drainage, vegetation, shoulder,

and miscellaneous activities

1/ Acronyms of Links are explained in Table V7, page 1*.

2/ Links GR4S, GR5L, GR5C and GRSS Grading km Grade every 7000 vehicle passes toto be maintained according to 9000 mm/km initial roughnesspresent standards: Spot Regravelling cu.m Replace 20% of gravel loss but not

more than 20 cu.m/km/yr.Gravel Resurfacing cu.m Resurface when surface thickness 50 mm

using latr. gravel to a restoredthickness of 100 mm

Routine Maintenance km Includes drainage, vegetation, shoulderand miscellaneous activities

S4urce: SNC and Miasion EatimatesMArch 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Maintenance Equipment and Vehicles Age and Condition in the Three Districts

Age Group in Years Total Average Condit-onEguipment Type 1-5 6-10 11-15 16-20 21-25 Units Age Good RepairJ Scrap-

Jeeps 5 5 - - - 10 5.5 4 5 1Pick-up Trucks 15 25 - - - 40 6.3 15 15. 10Wagoneers 5 3 4 - - 12 8.0 4 4 4Busses 3 - - - - 3 1.0 3 - -Flat-bed Trucks 14 5 6 - 2 27 6.8 12 6 9Dump Trucks 57 72 28 - - 157 6.6 53 68 36Workshop Trucks 1 - - - - 1 2.0 1 - -Tractor Trucks - - - 2 1 3 18.3 - - 3Water Tank Trucks 4 2 3 - - 9 6.8 4 2 3Water Sprinkler Trucks 1 7 - - _ 8 8.0 2 4 2Asphalt Distributors 3 1 1 - 1 6 7.6 3 1 2Asphalt Tankers 2 1 - - - 3 3.7 2 1 _

TOTAL Vehicles 110 121 42 2 4 279 6.6 103 106 70

Motorgraders 31 18 2 _ 13 64 8.2 26 18 20Tractors 29 12 8 - - 49 6.1 25 16 8Front-end Loaders 11 4 12 3 - 30 9.0 8 11 11Compactors 6 8 - - - 14 6.4 4 4 6Compressors - 15 4 - - 19 9.3 5 6 8Crushing Plant - - - - 1 1 19.0 - - 1

Total Construction Equipment 77 57 26 3 14 177 7.8 68 55 54

TOTAL 187 178 68 5 18 456 7.1 171 161 124

Percentage 41.0 39.0 14.9 1.1 4.0 100 - 37.5 35.3 27.2

1/ Includes minor repairs and overhauls.

2/ Equipment to be scrapped 1977-1981.

Source: SNC and Mission Estimates

March 1978

- 63 -

TABLE 3.10

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Equipment, Vehicles, Spare Parts, Tools, and Others to be

Purchased Under Project for the Three Districts

(CIF La Paz; in AprU 1978 US$1,000)

1 9 7 9 1 9 8 0 1 9 8 1 T O T A L

Unit Number Number Number Number

(i) Maintenance Equipment and Vehicles Costs of Units Cost of Units Cost of Units Cost of Units Cost

Motorgraders 120 H.P. 55 42 2,310 4 220 6 330 52 2,860

Tractors 75 H.P. with Trailers & drags 17 12 204 - - - - 12 204

Self-propelled rollers 8-10 tons 22 16 352 8 176 7 154 31 682

Tractors with bulldozers 155 H.P. 64 11 704 1 64 - - 12 768

Front end loaders 1.5 ml 48 11 52 3 144 2 96 16 768

iu p trucks 4 and 5 m3 22 100 2,200 66 10 220 113 2,486

Aggregate Spreaders 21 6 126 - - - - 6 126

Water tank trucks - 6 m3

22 19 418 7 154 7 154 33 726

Water pumps 3 1/2" 1.5 30 45 t0 15 10 15 50 75Mobile Patching plants 16 3 48 - - - - 3 48

Crushing Plants 30 m3 /hr 280 2 560 1 280 - - 3 840Triple Deck Screening Plants 60 m

3/hr 140 3 420 - - - - 3 420

Single Deck Screening Plants 30 m3 /hr 30 2 60 - - 1 30 3 90

Compressors with Tools 365 cu. ft. 22 6 132 - - - - 6 132

Service Trucks with crane and tools 25 2 50 - - - - 2 50

Truck with painting equipment 25 1 25 - - - - 1 25

Wagoneer Type FWD vehicle 10 2 20 - - - - 2 20

Wagoneer Type FWD vehicle with2-way radio 11 6 66 - - - - 6 66

Heavy Duty FWD pick-up Truck 8 6 48 - - - 6 48

Heavy Duty FWD pick-up truc w/ tools 9 6 54 - - - - 6 54

Jeep-type vehicle with 2-way radio 8 14 112 - - - - 14 112

Hand-Tool for labor Global - 200 - - - - - 200

Subtotal 8,682 1,119 999 10,800

(ii) Spare PartsFor Preventive Maintenance;Initial Stock for new equipment (15%) 1,302 168 150 1,620Additional stock for existing equipment (5%) 580 - 580For OverhaulLight vehicles 30 - - 30Heavy vehicles 220 80 50 350Heavy equipment 186 133 101 420

Subtotal 2,318 381 301 3,000

(iii) Workshop, Laboratory and TrainingEquipment and Tools

Workshop Equipment 800 - - 800

Traffic Counters and Laboratory Equip. 200 - 200Training Equipment and Tools 300 - 300

Subtotal 1,300 - -1,300

TOTAL 12,300 1,500 1,300 15,100

Source: SNC and Mission EstimatesMarch, 1978

- 64 -

TABLE 3.11

BOLIVIA

HIGHWAY M4AINTENANCE PROJECT

Estimates of Budgetary Requirements for Road Maintenance Programs (July 1. 1979-June 30.1983)(In April 1978 USS million)

1979 11 1980 1981 1982 1983 2/ Total

I. Recurrent Expenditures

Administration and Labor 1.5 3.1 3.4 3.7 2.0 13.7Materials 0.5 1.1 1.2 1.3 0.7 4.8Fuel and lubricants 0.2 0.3 0.3 0.3 0.2 1.3Spare parts 0.2 0.5 0.5 0.5 0.3 2.0

Subtotal 2.4 5.0 5.4 5.8 3.2 21.8

II. Project Expenditures

Deferred Maintenance 0.6 1.6 1.8 2.2 0.8 7.0Acquisition of equipment,

spare parts and tools 13.7 1.7 1.4 - - 16.8Workshops and Warehouses 0.6 - - - - 0.6Technical Assistance 0.7 0.7 0.7 0.4 0.2 2.7Engineering and Economic

Studies 0.4 0.8 0.6 - - 1.8Contingencies 3.8 1.3 1.2 0.8 0.3 7.4

Subtotal 19.8 6.1 5.7 3.4 1.3 36.3

TOTAL (I) + (II) 22.2 11.1 11.1 9.2 4.5 58.1

Government Contribution 6.6 7.3 7.6 7.6 4.0 33.1bank Financing 15.6 3,8 3.5 1.6 0.5 25,0

III, Recurrent Expenditures per District

La Paz 1.0 2.2 2.4 2.5 1.4 9.5Cochabamba 0.5 1.0 1.1 1.2 0.7 4.5Santa Cruz 0.9 1.8 1.9 2.1 1.1 7.8

Total 2.4 5.0 5.4 5.8 3.2 21.8

IV. Deferred Maintenance per Districts

La Paz 0.26 0.69 0.78 0.96 0.35 3.04Cochabamba 0.13 0.34 0.38 0.47 0.17 1.49Santa Cruz 0.21 0.57 0.64 0.77 0.28 2.47

Total 0.60 1.60 1.80 2.20 0.80 7.90

1/ Only second semester.2/ Only first semester.3/ Two decimal points are shown to keep adequate proportions.

Source: SNC and Mission EstimatesMarch 1978

- 65 -TABLE 3.12

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Estimated Schedule of Disbursements(in 1978 US$ million)

Quarterly CumulativeIBRD Fiscal Year Disbursement Disbursement

1979September 1978December 1978 - -March 1979 0.3 0.3June 1979 2.7 3.0

1980September 1979 6.0 9.0December 1979 6.6 15.6March 1980 1.0 16.6June 1980 0.7 17.3

1981September 1980 0.7 18.0December 1980 1.4 19.4March 1981 0.6 20.0June 1981 0.7 20.7

1982September 1981 0.7 21.4December 1981 1.5 22.9March 1982 0.5 23.4June 1982 0.4 23.8

1983September 1982 0.4 24.2December 1982 0.3 24.5March 1983 0.3 24.8June 1983 0.2 25.0

Assumption: Loan Effectiveness October 1978Start Technical Assistance March 1979Start Delivery Equipment and Spare Parts May 1979Start Highway Maintenance Program July 1979Start Consultant Services November 1979

Source: Mission Estimates

March 1978

- 66 - ~~~~~~~TABLI 3. 13

- 4 -oC4 444

.4 ^5 o

= .4. U

4.4 ~ ~ C '44 , o o Q

_

o 4 p. 1 .4 '

Z ~ ~ 4 . _________C

_0 .4 _ .4 c44' X 4

o4~ 1' o .4. 4

-, ,.4 44 0

_ t , _ ___ ~~~~~~~~~~~~~~~. = 4o

c4 ,4 .4 ' 4 o.u > s t C E44 44 a 1 4 -

5 ¢ c 3 zo * u.44 . 4.4 .

.~ ~ ~ ~~~' =o 8 44. 44fc 5 . -44 _ , .4 44 o 4 4 4oX

,. .4- 2 8 K' 2 C 8 N 8 304 ! ,4 S 8 a 44 4. < Q m

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Economic Maintenance and User Costs "With" and "Without"_Project

(Discounted at 11% in 1978 USS million)

LA PAZBenefit/

"Without" Project "With" Project Without Minus With Project Cost Net PresentMaintenance Costs User Costs Mainteance Costs User Costs Maintenance Costs User Costs Ratio Value

Paved RoadsSTlL 4.037 288.512 6.217 215.789 -2.180 72.723 70.543ST2L 0.708 10.391 0.848 9.433 -0.140 0.958 0.818Gravel RoadsGR1L 1.437 107.008 2.985 84.838 -1.548 22.170 20.622GR2L 1.702 90.402 2.614 78.581 -0.912 11.821 10.909GR3L 0.455 17.443 0.736 15.514 -0.281 1.929 1.648GR4L 1.667 34.778 2.816 31.741 -1.149 3.037 1.888Earth RoadsEA1L 0.238 16.821 0.366 15.964 -0.128 0.857 0.729EA2L 1.032 24.532 1.725 21.753 -0.693 2.779 2.086EA3L 2.300 21.191 2.749 17.690 -0.449 3.501 3.052

Subtotal 13.576 611.078 21.506 491.303 -7.480 119.775 16.0:1 112.295

COCHABANBA

Paved RoadsAClC 0.199 106.419 0.216 106.396 -0.017 0.023 0.006Gravel RoadsGRIC 0.628 29.505 0.904 26.103 -0.276 3.402 3.126GR2C 0.718 34.876 1.336 30.055 -0.618 4.821 4.203GR3C 1.471 40.710 2.618 34.139 -1.147 6.571 5.424GR4C 0.148 2.321 0.269 2.033 -0.121 0.288 0.167Earth RoadsEA1C 0.040 4.401 0.076 4.154 -0.036 0.247 0.211EA2C 0.091 5.535 0.133 5.211 -0.042 0.324 0.282EA3C 0.501 11.867 0.814 10.234 -0.313 1.633 1.320

Subtotal 3.796 235.634 6.366 218.325 -2.570 17.308 6.7:1 14.739

SANTA CRUZ

Paved RoadsAC1S 0.049 163.509 0.048 163.508 0.001 -0.001 0.001Gravel RoadsGRlS 0.455 17.689 0.730 15.743 -0.275 1.946 1.671GR2S 0.638 23.861 1.065 21.054 -0.427 2.807 2.380GR35 1.121 24.847 1.997 22.830 -0.876 2.017 1.141Earth RoadsEAlS 1.854 192.506 3.816 169.725 -1.962 22.781 20.819EA2S 0.439 22.962 1.194 15.327 -0.755 7.635 6.880EA3S 1.583 23.107 2.313 18.104 -0.730 5.003 4.273 ;

Subtotal 6.139 468.481 11.163 426.291 -5.024 42.189 8.4:1 37.165

TOTAL 23.505 1,315.193 3 9.035 1,135.919 -15.074 179.272 11.9:1 164.198 .

Source: Mission Estimates

March 1978

- 68 - TABLE 4.2

Page 1 of 3BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Project Summary of Economic Analysis

(in April 1978 US$ million)

District La Paz

This table gives results of analysis for all links for the specified discountrate. Alternatives which maximize the net present value are selected foreach link.

Discount Rate - 11.0% Alternative Net Present Value

Paved Roads

Link ST1L 195. Km ALT4 - ALT1 70.544ALT3 - ALT1 65.578ALT2 - ALT1 29.254

Link ST2L 38. Km ALT4 - ALT1 0.818ALT2 - ALT1 0.283ALT3 - ALT1 0.040

Gravel Roads

Link GRlL 203. Km ALT3 - ALT1 20.622ALT2 - ALT1 20.446ALT4 - ALT1 19.976

Link GR2L : 319. Km ALT2 - ALT1 10.909ALT3 - ALT1 10.892ALT4 - ALT1 10.611

Link GR3L : 105. Km ALT3 - ALT1 1.648ALT4 - ALT1 1.597ALT2 - ALT1 1.584

Link GR4L 540. Km ALT3 - ALT1 1.887ALT2 - ALT1 1.860ALT4 - ALT1 1.675

Link GR5L 754. Km ALT3 - ALT1 - 0.577)ALT2 - ALT1 - 0.670) 1/ALT4 - ALT1 - 0.795)

Earth Roads

Link EAlL 154. Km ALT3 - ALT1 0.730ALT4 - ALT1 Q.636ALT2 - ALT1 0.465

Link EA2L 967. Km ALT4 - ALT1 2.086ALT3 - ALT1 1.923ALT2 - ALT1 1.199

Link EA3L 2388. Km ALT4 - ALT1 3.053ALT3 - ALT1 2.437ALT2 - ALT1 1.249

1/ Not included in the proposed highway maintenance program.

Source: Mission Estimates

March 1978

- 69 -TABLE 4.2

BOLIVA Page 2 of 3

HIGHWAY MAINTENANCE PROJECT

Project Summary of Economic Analysis

(in April 1978 US$ million)District Cochabamba

This table gives results of analysis for all links for the specified discountrate- Alternatives which maximize the net present value are selected foreach link.

Discount Rate - 11.0% Alternative Net Present Value

Paved Roads

Link AC1C : 104. Km ALT4 - ALT1 0.005ALT3 - ALT1 0.005ALT2 - ALTI 0.005

Link STlC 284. Km ALT4 - ALT1 -10.288)ALT3 - ALT1 -10.288) l/ALT2 - ALT1 -10.288)

Link ST2C : 97. Km ALT4 - ALT1 - 4.271)

ALT3 - ALT1 - 4.271) 1/ALT2 - ALT1 - 4.271)

Gravel Roads

Link GR1C 39. Km ALT2 - ALTl 3.126ALT3 - ALT1 3.119

ALT4 - ALT1 3.002

Link GR2C 106. Km ALT3 - ALT1 4.202ALT2 - ALT1 4.188ALT4 - ALT1 4.173

Link GR3C 220. Km ALT4 - ALT1 5.423ALT3 - ALT1 5.260

ALT2 - ALT1 5.048

Link GR4C 37. Km ALT4 - ALT1 0.167ALT3 - ALT1 0.128ALT2 - ALT1 0.060

Link GR5C 844. Km ALT4 - ALT1 - 0.481)

ALI3 - ALT1 - 0.660) 1/ALT2 - ALT1 - 0.819)

Earth Roads

Link EA1C 38. Km ALT3 - ALT1 0.211ALT4 - ALT1 0.196ALT2 - ALT1 0.132

Link EA2C 150. Ka ALT3 - ALT1 0.282ALT4 - ALT1 0.272ALT2 - ALT1 0.176

Link EA3C 1087. Km ALT4 - ALTI 1.319

ALT3 - ALTI 1.141

ALT2 - ALTI 0.699

1/ Not included in the proposed highway maintenance program.

Source: Mission Estimates

March 1978

- 70 - TABLE 4.2

Page 3 of 3BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Project Summary of Economic Analysis

(in April 1978 US$ million)

District Santa Cruz

This Table gives results of analysis for all links for the specified discountrates. Alternatives which maximize the net present value are selected foreach link.

Discount Rate - 11.0% Alternative Net Present Value

Paved Roads

Link AClS 50. Km ALT4 - ALTI 0.001ALT3 - ALT1 0.001ALT2 - ALT1 0.001

Link STlS 434. Km ALT2 - ALT1 -10.605)ALT4 - ALT1 -11.570) 1/ALT3 - ALT1 -19.456)

Gravel Roads

Link GRlS 41. Km ALT2 - ALT1 1.671ALT3 - ALT1 1.667ALT4 - ALT1 1.583

Link GR2S 93. Km ALT2 - ALT1 2.380ALT3 - ALTI 2.377ALT4 - ALTI 2.282

Link GR3S 228. Km ALT3 - ALT1 1.141ALT2 - ALT1 1.118ALT4 - ALTI 1.097

Link GR4S : 24. Km ALT3 - ALT1 - 0.007)ALT4 - ALT1 - 0.007) 1/ALT2 - ALT1 - 0.009)

Link GR5S : 410. Km ALT4 - ALT1 - 0.246)ALT3 - ALT1 - 0.294) 1/ALT2 - ALT1 - 0.355)

Earth Roads

Link EAlS : 1132. Km ALT4 - ALTI 22.876ALT3 - ALT1 20.819ALT2 - ALT1 12.500

Link EA2S : 673. Km ALT4 - ALT1 6.880ALT3 - ALT1 5.351ALT2 - ALT1 2.990

Link ZA3S 3411. Km ALT4 - ALT1 4.273ALT3 - ALT1 2.856ALT2 - ALTI 0.573

1/ Not included in the proposed highway maintenance program

Source: Mission Estimates

March 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

SENSITIVITY TESTS

Benefit/Cost Ratios and Net Present Values

(discounted at 11% in April 1978 USS million)

Best Estimate Benefits Decreased by 25% 2-year delay in Project ImplementationBenefit/ Net Benefit/ Net Benefit/ Net

Cost Present Cost Present Cost PresentRatio Value Ratio Value Ratio Value

Paved Roads LAPAZ.STIL 70.543 52.362 50.264ST2L 0.818 0.579 0.576

Gravel RoadsGRlL 20.622 15.080 14.640GR21, 10.909 7.954 7.740GR31, 1.648 1.166 t. 161GR4L. 1.888 1.129 1:283Earth RoadsEAIL 0.729 0.515 0.513EA21, 2.086 1.391 1.450EA31, 3.052 2.177 2.154

Subtotal 16.0:1 112.295 82.35112.0:18231 14.8.1 79.781

COCHABAMBAPaved RoadsACIC 0.006 0.000 0.003Gravel RoadsGR2C 3.126 2.276 2.217GR2C 4.203 2.998 2.967GR3C 5.424 3.781 3.809GR4C 0.167 0.095 0.112Earth RoadsEAIC 0.211 0.149 0.149EA2C 0.282 0.201 0.199EA3C 1.320 0.912 0.925

Subtotal 6.7:1 14.739 5.0:1 10.412 6.2:1 10.381

SANTA CRUZPaved RoadsAClS 0.001 0.000 0.000Gravel RoadsGRIS 1.671 1.185 1.178GR2S 2.380 1.678 1.~676GR3S 1.141 0.637 0.765Earth RoadsEAIS 20.819 15.124 14.759EA2S 6.880 4.971 4.871

EA3S 4.273 3.022 3.010

Subtotal 8.4:1 37.165 6.3:1 26.617 7.8:1 26.259

TOTAL 11.9:1 164.198 8.9:1 119.380 11.0:1 116.421

Source: Mission Estimates

March 1978

- 72 -

ANNEX I

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

The Proposed Four-Year Highway Maintenance Program(July 1, 1979-June 30, 1983)

1. Paved Roads

Most surface-treated roads (about 1,150 km) are weak for the presenttraffic level and would need immediate rehabilitation, for which the proposedproject provides the required preparation. The two surface-treated links inLa Paz have satisfactory subgrade conditions, and patching of 90% of theunpatched cracks would be the most economic alternative, requiring about1,000 m2 of patching per km per year. The two surface-treated links inCochabamba and the one in Santa Cruz have very differentiated subgrade condi-tions, varying within relative short distances from CBR values as low as 4 tovalues as high as 28. The analysis, based on average conditions, showed thatintensive patching or surface treatments are not economically justified.As a consequence, continuation of the present limited patching policy(150 m2/km/year) was considered during the project period, and immediaterehabilitation after July 1983. During the implementation period of theproject, SNC should study the details of the different conditions of surface-treated roads to define a more accurate pavement maintenance policy on asection-by-section basis.

The two asphalt concrete links in Cochabamba (at present in con-struction) and in Santa Cruz (completed in 1977) have an adequate strengthand would require only patching of a few cracks (10 m2/km/year). All pavedhighways would receive regular right-of-way, shoulders and drainage maintenanceduring the project period.

2. Gravel Roads

All gravel roads with ADT above 20 in La Paz and Cochabamba and about50 in Santo Cruz would be resurfaced with graded crushed or screened materialsof much smaller size than the coarse gravel currently used by SNC in a thicknessof at least 0.10 m. The links with more than 100 ADT in the three districtswould receive a 0.15 m thick layer of graded crushed or screened gravel.Maintenance of gravel roads before their resurfacing and of those not to beregraveled would continue at the present level. Maintenance of gravel roadswould be considerably improved after they have been resurfaced and wouldinclude watering and compaction every third grading.

After resurfacing, the benefits are rather independent from thegrading frequency, even in the range investigated of one grading for each7,000, 11,000, or 15,000 vehicle passes. The "optimal" grading frequency wasconsidered for the program (Table 3.6). Spot regraveling requirements havebeen considered to replace, every year, 20% of gravel loss.

- 73 -

ANNEX I

No substantial changes have been foreseen in regular maintenance(right-of-way cleaning, slope control, slide clearing and drainage mainte-nance) of gravel roads, other than the effort to make more accentuated andintensive use of labor-intensive methods.

3. Earth Roads

Little maintenance is done at present on most earth roads. Theprogram foresees a substantial increase in regular maintenance of earthroads, with the maximum possible use of labor-intensive methods. Gradingof earth roads should be increased from its present low average frequencyof one grading for every 11,000 vehicle passes to intensive frequenciesranging from one grading every 1,500 to every 4,000 vehicle passes. Theoptimal grading frequency was chosen for all links in the three districts,except for link one in Santa Cruz. For this link, the optimal gradingfrequency was of one grading for every 1,500 vehicle passes, demanding onegrading every two weeks on 1,324 km of earth roads in the first year andrequiring 53 motorgraders a year. Since these high density traffic earthroads are under consideration to be improved to gravel standards as soon aspossible, the second best alternative was selected, one grading every 4,000vehicle passes, reducing grading requirements to one every 35 days for thefirst year and motorgrader needs for this link to 21.

An average spot graveling of 10 m /km of earth roads has beenconsidered necessary for repair of localized weak spots in earth roads.Regular maintenance of earth roads would also be substantially increased,mainly through labor intensive methods.

4. Regional Differences

The main differences in economic results for La Paz, Cochabambaand Santa Cruz accrue from: (a) more intensive maintenance of the surfacetreated pavements in La Paz built on subgrades with a uniform satisfactorybearing capacity, as compared to the surface treatments in Cochabamba andSanta Cruz on uneven and partially weak subgrades, which would requireimmediate rehabilitation; (b) above average concentration of high trafficdensity gravel roads to be improved under the project in La Paz; and(c) above average concentration of earth roads with unusually high trafficdensities in Santa Cruz.

5. Road Maintenance Expenditures

Road maintenance expenditures per km, not including deferred main-tenance, would be, at the end of the project: US$446 for La Paz, US$418 forCochambamba and US$310 for Santa Cruz, with an average of US$382 for thesethree districts.

May 1978

- 74 -ANNEX 2

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Maintenance Equipment for the Highway Maintenance Program

1. The estimate of equipment to be procured for the proposed highwaymaintenance program (July 1, 1979-June 30, 1983) in the districts of LaPaz, Cochabamba, and Santa Cruz was based on an inventory of the presentmaintenance fleet in the three districts, prepared by SNC in September 1977(Table 3.9). The existing fleet in the three districts, composed of 456 units(not including small equipment such as generators, pumps, plate compactors,concrete mixers) is in slightly better condition than the country's average(Table 2.13). Average age is 7.8 years for heavy equipment and 6.6 years forvehicles; 38% of the fleet is in good working condition, 35% needs repair oroverhaul and 27% is to be scrapped within the next few years. This situationis likely to deteriorate until start of the project in July 1979. About200 units will be in need of major overhaul at that time.

2. Fleet availability (total time of 2,000 hours a year less time lostbecause of equipment breakdown or preventive maintenance, divided by total time),fleet utilization (available time less standby time, divided by availabletime), and total fleet utilization (availability x utilization) could be estab-lished separately for different types of equipment and vehicles, in each oneof the three districts, based on reports by the residencies from January 1 toJune 30, 1977 (Table I of this annex). Average fleet availability is 55%in La Paz and Cochabamba but only 41% in Santa Cruz. Equipment utilization is79% in La Paz, 61% in Cochabamba and 70% in Santa Cruz, rendering a totalutilization of 43%, 33% and 29% respectively. As an average for the threedistricts, fleet availability is estimated at 50%, utilization at 70% andtotal utilization at 35%.

3. The project should increase availability and utilization of the oldequipment and vehicles according to the estimates given in Table 2 of thisannex, which also indicates availability and utilization percentages for thenew equipment.

4. The required hours per year for each type of equipment were estimatedbased on the maintenance program's production targets (project indicators) forevery year and on the equipment output figures under Bolivian conditions.The maintenance program equipment requirements were established by subtractingusable hours of the present equipment from the required hours.

5. The estimation of economic life of the equipment was done as follows:

- 75 -

ANNEX 2

(a) Economic life of equipment in developed countries is accepted to be:

Hours

Vehicles 5,000Construction equipment 10,000Plant 15,000

(b) Because of the capital constraints in Bolivia and of low cost oflabor for equipment maintenance and overhaul, an increase of 25% ofhours of economic life has been assumed.

(c) According to total utilization per year of new equipment given inTable 2, average life in years can be estimated as follows:

Year Utilized Hours Accumulated Economic Life in Years

1 1,260 1,2602 1,350 2,6103 1,360 3,9704 1,330 5,3005 1,290 6,590 Vehicles: 56 1,200 7,7907 1,200 8,9908 1,200 10,1909 1,200 11,390

10 1,200 12,590 Construction11 1,200 13,790 equipment: 1012 1,200 14,99013 1,200 16,19014 1,200 17,39015 1,200 18,590 Plant: 15

April 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Equipment and Vehicle Fleet Availability 1/ and Utilization.2/ in the Three Districts (January 1-June 30 1977)

Heavy Equipment Heavy Vehicles Light Vehicles Miscelaneous Equip. Total Average 4/

Units % Units % Units % Units % Units %

Availability 1' 53 51 67 68 54La Paz Utilization 2/ 62 85 53 73 42 68 22 27 179 79

Total Utilization 3/ 45 37 46 18 43

Availability 53 54 72 56 55Cochabamba Utilization 57 59 44 67 39 67 32 33 172 61

Total Utilization 31 36 48 18 33

Availability 37 42 69 33 41Santa Cruz Utilization 58 72 52 68 33 66 14 25 157 70

Total Utilization 27 29 46 8 29

Availability 48 49 69 55 50TOTAL Utilization 177 72 149 69 114 67 68 29 508 70

Total Utilization 35 34 46 16 35

1/ Availability = Total Time- Workshop Time 2/ Utilization = Available Time - Standby TimeTotal Time Available Time

3/ Total Utilization = (Availability)x(Utilization) = Total Time - (Workshop Time + Standby Time)Total Time

4/ Estimated weighted average based on average prices: US$38,000 for heavy equipment unit US$20,000 for heavy vehicles;US$ 8,000 for light vehicles and US$ 2,000 for miscelaneous units

Note: Some of the vehicles in the inventory (Table 3.9 ) arrived during or after the first semester 1977; miscellaneous Cequipment was not included in the inventory.

Source: SNC and Mission Estimates I s

Fehrtuary 1Q78

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Variations over the Years in Fleet Availability and Utilization of Existing and New Equipment and Vehicles

Years: 1 2 3 4 5 6 1/

Existing Equipment and Vehicles

Average Fleet Availability Hours 1,000 1,100 1,200 1,300 1,400 1,400% 50 55 60 65 70 70

Utilization of available time % 70 75 80 83 86 86

Total Utilization Hours 700 825 960 1,079 1,204 1,204(Availability)x(Utilization) % 35 41 48 54 60 60

New Equipment and Vehicles

Average Fleet Availability Hours 1,800 1,800 1,700 1,600 1,500 1,400% 90 90 85 80 75 70

Utilization of available time % 70 75 80 83 86 86

Total Utilization Hours 1,260 1,350 1,360 1,330 1,290 1,204(Availability)x(Utilization) % 63 67.5 68 66.4 64.5 60

1/ After the 6th Year the factors are constant and the same for old and new equipment and vehicles

Source: SNC and Mission Estimates t|

March 1978 " M

- 78 -ANNEX 3

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Outline Terms of Reference for theTechnical Assistance on Highway Maintenance

Objectives

1. The purpose of the technical assistance is to provide consultantservices over a period of about four years, as a continuation of the servicesprovided by the advanced technical assistance under Loan 1422-BO. Theprincipal objectives are:

(i) to assist SNC in the implementation of the highway maintenanceproject in the three districts;

(ii) to improve and expand the organization and procedures relatedto highway maintenance, rehabilitation and improvement;

(iii) to introduce appropriate management systems which will assureeffective planning, budgeting, scheduling, directing andcontrolling of maintenance, rehabilitation and improvements;

(iv) to improve the overall management and utilization of the maintenanceequipment and vehicle fleet;

(v) to determine current and future manpower requirements and relatedtraining needs arising from the highway maintenance program, andto recommend and assist in implementing a phased training plan formaintenance personnel at all levels; and

(vi) to assist SNC in the preparation of a countrywide road maintenanceproject.

Scope of Consulting Services

2. The project shall be carried out under the authority of the Directorof SNC. The consultant shall advise and assist in the development and imple-mentation of improved practices for organization and management of maintenanceoperations in the three districts considering later expansion to the wholecountry. This work shall include, but not necessarily be limited to, thefollowing functional areas:

(i) Maintenance Organization and Management

3. (a) strengthening the management capabilities of SNC's maintenancedepartment for planning, scheduling, performing and controlling

- 79 -

ANNEX 3

highway maintenance and minor improvement programs and

operations, and for preparation of road rehabilitationand upgrading projects;

(b) developing and implementing improved general accountingpractices, and establishing a cost accounting systemappropriate to support maintenance management systems,

differentiating between regular and periodic maintenance,rehabilitation, minor and regular improvement of roads;

(c) establishing an organizational framework at headquarters,district and residence levels, and in the field, forcarrying out maintenance operations more effectively; and

(d) investigating and recommending measures to increase avail-

ability and utilization of tax-induced and voluntary manpowerfor labor intensive road maintenance procedures.

(ii) Maintenance Program

4. (a) implementation of the highway maintenance program as definedin the highway maintenance project for the three districts,stressing differentiation among operations in the threegeographic regions;

(b) determination of priorities to be assigned to differentroads or road sections for execution of pavement maintenanceand regraveling, both for deferred maintenance and currentmaintenance programs;

(c) review of the annual maintenance programs and projectindicators (Table 3.10) and confirmation of work accom-plished in the previous year;

(d) location of the most adequate sources of suitable materialrequired for the performance of the maintenance program, andstudy of transportation and handling problems;

(e) investigation of present labor-intensive techniques inBolivia and their development and application, considering

experience in similar projects in other developing countries

and current experience in Bolivian rural road improvementprojects;

- 80 -

ANNEX 3

(f) analysis of the maintenance standards used in the projectevaluation through the Highway Design and MaintenanceStandards Model and recommendations for their confirmationor improvement according to Bolivian conditions; specialattention should be given to establishing most efficientgrading frequencies per vehicle passes on gravel and earthroads, and most efficient relation of patching and surfacetreatment of paved roads to traffic density and composition;and

(g) continuation and updating of road roughness measurements inBolivia using the Mays Ride Meter, and following and comple-menting work performed by the Texas Research and DevelopmentFoundation.

(iii) Equipment and Workshops

5. (a) review and updating of maintenance equipment and vehicle fleetinventory, prepared with the help of the advanced technicalassistance, including detailed survey of existing equipment andvehicles requiring major overhaul;

(b) final review of equipment and vehicle procurement list andpreparation and execution of procurement program;

(c) final review and implementation of SNC's scrapping programfor the three districts;

(d) improvement of collection, recording and interpretation ofdata on fleet availability and utilization, on equipmentand vehicle output and on operation costs;

(e) annual review of equipment-related indicators;

(f) improvement of present practices and controls for preventivemaintenance of vehicles and road maintenance equipment;

(g) preparation and control of equipment and vehicle overhaulprograms;

(h) improvement of workshop organization and management practicesfor servicing and repair of equipment and vehicles;

(i) development and implementation of improved practices foracquisition, storage, control, and distribution of spareparts, materials and supplies; and

- 81 -ANNEX 3

(j) control of exclusive use of all vehicles, equipment, spareparts and materials procured under the project for roadmaintenance and minor improvement works within the threedistricts.

(iv) Personnel Training

6. To assess the current and future manpower requirements and relatedtraining needs, the consultants, among other things, shall:

(a) assess the effectiveness of the current policies regardingrecruitment, career development and remuneration, andrecommend any organizational changes required to createan environment in which training can be most effective;

(b) update the inventory of all maintenance personnel in thecountry, divided between headquarters and districts,skilled and unskilled, and broken down by categories andlevels, and evaluate the capability and potential ofpersonnel currently employed to better assess trainingneeds;

(c) develop a phased training plan for different categoriesand levels of personnel, addressed in particular to middlemanagers and technical staff involved in planning and inroad and equipment supervision of maintenance works;

(d) assist in the formation of a permanent training unit withinSNC, including its structure, functions and related budget,which would be responsible for the planning, implementationand supervision of all training activities, includingeventual organization of a Training Production Unit (TPU)which would be involved in deferred maintenance works;

(e) assist in the organization of periodic conferences orseminars for middle and higher management level specializedin different topics related to maintenance management,accounting, and operations to interchange and spread infor-mation and experience on maintenance matters in general,and on the project's maintenance program in particular;

(f) determine the number and types of instructors required andformulate and participate in implementation of specialcourses for these instructors;

- 82 -

ANNEX 3

(g) improve present training activities at the Patacamayacenter, developing and implementing priority courses onmaintenance work methods and equipment, servicing andrepair, for middle-level supervisors, foremen, operatorsand mechanics, recommending needed expansion of existingphysical facilities and acquisition of required equipment,material and audio-visual elements;

(h) make a study of the manpower requirements of SNC forthe next five years, including related training needsand taking special account of overall maintenancepersonnel requirements; and

(i) establish a system to monitor and evaluate the results oftraining.

(v) Preparation of the Countrywide Road Maintenance

7. Based on the experience obtained through the implementation of thehighway maintenance project in the districts of La Paz, Cochabamba and Santa Cruz,and on the findings and recommendations of the Transport Sector Survey includedin the Third Railway Project (Loan 1422-BO), the technical assistance would helpSNC in the preparation of a countrywide road maintenance, rehabilitation andupgrading project. In particular, it would provide advice and assistance to:

(a) coordinate activities and studies carried out under thehighway maintenance project with the NTS;

(b) interpret and implement the recommendations related tohighway maintenance;

(c) review, complement and systematically update all roadinventory, traffic, economic and financial data providedby the NTS and relating to highway maintenance and toplanning of highway rehabilitation, improvement and con-struction;

(d) collect complete information on road maintenance and minorimprovement operations outside the three districts; onmaintenance equipment and vehicles inventory, condition,availability and utilization; on workshops and warehouses;on management of equipment and spare parts, and on any otherinformation required for preparation of the countrywide roadmaintenance project;

(e) assist SNC in preparing a list setting forth the paved, graveland earth sections for which detailed engineering and furthereconomic studies will be done (provided under the proposedhighway maintenance project) in light of the NTS recommenda-tions of priorities assigned to specific road rehabilitationand upgrading projects;

- 83 -

ANNEX 3

(f) complete collection of information on road roughnessin Bolivia using the Mays Ride Meter, and applying,

countrywide, the procedures used in the three districts;

(g) prepare a countrywide road maintenance project following

the procedures and criteria used for the preparation and

appraisal of the road maintenance project in the districtsof La Paz, Cochabamba and Santa Cruz.

Staffing

8. Staff requirements and the duration and timing of their services,

agreed upon in principle during appraisal in Bolivia and slightly adjusted

later, are shown in Table I of this annex and was discussed and agreed

during negotiations. A total of about 350 man-months would be required

during the project period.

Schedule

9. The project would be carried out over a period of 48 months in five

phases of work including:

(i) review and evaluation of existing situation;

(ii) implementation of technical assistance and detailed plan of

operation;

(iii) coordination with National Transport Survey;

(iv) implementation of maintenance project in the three districts;

preparation of countrywide project; and

(v) overall program monitoring.

Manuals and Reports

10. All manuals shall be performance-oriented, and most reports shall be

directed toward documenting accomplishments and results. They include a

report on future highway maintenance needs and manuals on highway maintenance,

equipment management, accounting and budgeting, administration and training.

During the course of the project, the following reports would be required:

(i) Inception Report: Within two months of the starting date,

stating the consultants' detailed work plan and schedule foraccomplishing the project objectives (20 copies in Spanish).

(ii) Progress Reports: At two-month intervals after submission of

the Inception Report, listing the consultants' field staff,work performed during the reporting period, difficulties and/or

delays encountered and proposed remedial actions and the plan

for the subsequent four months (20 copies in Spanish).

- 84 -

ANNEX 3

(iii) Draft Final Report: Three months before closing date, summarizingthe work performed for both tasks and the findings and recom-mendations for a future highway maintenance program (20 copiesin Spanish).

(iv) Final Report: Incorporating all revisions deemed appropriateby the consultants within two months after receipt of commentsfrom the Government on the Draft Final Report (50 copies inSpanish).

Executing Government Agency and Counterpart Staff

11. SNC would be the contracting Government agency. Counterpart personnelat headquarters and in the districts would be provided from among permanentemployees of SNC.

May 1978

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Staffing and Scheduling of Technical Assistance

Scheduling of Consultants (Proje ct Years) monthsStaffing First I Second I Third Fourth Consul- Counter-

tants partsAt HeadquartersProject Manager (Road Maint. Special) = == ===,= ==== = 52 1/ 52Equipment Manager (Operat. and Maint) …=………48 48Soils and Pavement Engineer 12 24Warehouse Specialist - … - =-==== 24 48Accountant - … - _ 24 48Transport Economist 18 30Computer System Analyst === 24

190 274

At DistrictsRoad Maintenance Specialist ======== = 48 48Equipment Superintendent ==== ===== == = 40 40-

1 ~88 88 00

TrainingManpower Specialist 12 __Road Maintenance Specialist -= 24 48Equipment Operation Specialist 18 42Equipment Maintenance Specialist L18 36

TY 126

TOTAL 350 488

1/ Four additional months for preparation of final report.

Foreign Cost: 350 Man-months at US$6,000 each = US$2,100,000; Transportation US$250,000; Total US$2,350,000.Local Cost: 350 Man-months at US$1,000 each = US$350,000; Miscellaneous US$50,000; Total US$400,000.

Source: Mission Estimates X M

February 1978

- 86 -

ANNEX 4

BOLIVIA

HIGHWAY MAINTENANCE PROJECT

Selected Documents and Data Available in the Project File

A. Reports, Studies and Data on the Transport Sector

Al. Plan de Desarrollo Economico y Social 1976-1980 (The Five-YearDevelopment Plan) Ministry of Planning

B. Reports, Studies and Data Relating to the Project

Bl. Highway Inventory, 1967

B2. Traffic Statistics, 1973

B3. Report on Maintenance Operations, 1976

B4. General Balance SNC, 1976

B5. Folder with Complete Data of the Equipment Division

B6. Cost Analysis and Unit Costs for Highway Construction (Baquero)

B7. Rationalization of Maintenance Costs (Baquero)

B8. Vehicle Park Statistics

B9. National Fuel Consumption at Department Level, 1938-1976

B10. Description of Road User Charges

Bll. Revenues from Road User Charges

B12. Road Network, 1960-1974

B13. Road Maintenance Costs Tables

B14. SNC Personnel Chart

B15. Traffic Densities, 1969-1976

B16. ADT Charts, 1973-1976

B17. List of External Loans for Highways

B18. Report and Charts on Vehicle Weight Surveys

B19. Bolivia Rural Roads I (USAID)

B20. Bolivia Rural Roads II (USAID)

- 87 -

ANNEX 4

B21. Evaluation of Highway Roughness in Bolivia (Texas Research andDevelopment Foundation)

B22. HDM - Model - Program Documentation

C. Working Papers prepared by Bank Staff and Bank Consultant

Cl. HDM - Model Outprints - La Paz, Cochabamba, Santa Cruz

C2. Consultant's Report: Vehicle Operating Costs, Vehicle FleetCharacteristics and Traffic Growth Rates.(Robert Mott, October 10, 1977).

April 1978

BOLIVIAHIGHWAY MAINTENANCE PROJECT

Organization Chart of the Ministry of Transport,Communications and Civil Aeronautics

MINISTER

SUBSECRETARIAT ~~~~~~~~~~~~SUBSECRETARIAT OF SUB SEC RE TARIAT OFOF TRANSPORT ~~~~~~~~~~~~~COMMUNIECATIOHS CIVIL AERONAUTIC S

E -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

DIRECTORATE OFANN INIG CSTRA IRNAT IRONDAND STATISTICSF

IDIRECTORATE OF -L LEG AL|ECONOMIC COUNSEL C. | ONSEL

D IRECTORATE OF PERSON M1EL jADltlNISTRATION DIREC.TORAE )

DItRECTORATE DR ECTORATE OF DIRECTORATE OF DIRECTORATE OF OF | I POSTAL OF ECTORATE OFOF RAILWAYS AUTOMOTIVE TRANSPORT IER AN FAROINE L PROJECT CONTROL TECCMmUNICATIONS DIRECTORATE CIVIL AERONAUTICS L AIR WORKS

LE'FE

IJINT ARGENTINA-BOLIVIA1 ILCOMAYO RiVERRA LWAY COwMMISSION BASIN PROJECT

SNC S- oio. oN- l d, C.-!o... JN-1- R..d. S-l.)SN}Dfi so ,.oio t.ocioool de 4.50 olli OR irool

(NNH io0l eeOroogcl d dl 1 IEKFPe Enpre. iational de PerrOcarlr 00tina 08ld1

AASAiA Ad.- in--racidn AutAnoo par. SorvIolot to As,$tercib. 1. Na-ego AOrta (Air Navigatlon AsSist.nceA.." in,srrarion)

L ,l oyd Ae,to Rol l 100i0bnENTIEL - i-I Naon0 d. Tolon.o I ioltS (N.tlo,.I

TS IrCttOOflions Co"tpOfyl

Source: Minittry of TroanporEt Co_uniCations and Civil Aeronautics.

- as-

BOLIVIA

HIHWAY MAiNJrNANCI PROJECT

NatiOn4a Hishvaj S.r-t.Planning D.p*rtuett

AVEIAC! DAILY TLAFFTC - 1976

Primary and Secondary Road.

BOLIV1A

HIGHWAY MAINTENANCE PROJECT

Organization Chart of the National Highway Service (Servicio Nacional de Caminos - SNC

I DIRECTOR

| G ENERAL COUNSEL -- - - | CONSULTING COUMCIL

|DEpUTY DIRECTOR|

Maintenance Plannt | lCo ntzitiox Dld E'lprent Finances | Administration

I

0~~~~

1 1 ~ ~ ~ ~ ~~1 I 4) I

0 ~ ~ ~ ~ ~ ~ ~ 04

|Administration i Engineering I|Equipment | FMaintenance | AdminietratioW En8ineering ||Equipment 1 Construction|

W§301r iL Illli SW 0il ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r i il

Source: SNC

March 1978

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