Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 5493-{)M

STAFF APPRAISAL REPORT

SULTANATE OF OMAN

Aw w hf zRb HIGHWAY MAINTENANCE PROJECT

September 9, 1985

Projects DepartmentEurope, Middle East and North Africa Region

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(as of August 1, 1985)

Currency Unit = Omani Rial (RO)

RO 1 = 1,000 Baizas1,000 Baizas = US$2.898551 Baiza = US$0.0029100 Baiza = US$0.29US$1 = RO 0.345

FISCAL YEAR

January 1 to December 31

WEIGHTS AND MEASURES

1 meter (m) = 3.281 feet (ft)1 kilometer (km) = 0.621 miles (mi)1 sq. kilometer (kM2) = 0.386 sq. miles (mi2)1 metric ton (m ton) = 0.984 long ton (lg ton)

GLOSSARY OF ABBREVIATIONS

ADT - Average Daily TrafficDG - Directorates GenerAl of RoadsNOC - Ministry of CommunicationsMMT - Maintenance Management/TrainingMTPU - Mechanical Training Production UnitRTPU - Road Training Production UnitVOC - Vehicle Operating CostPDO - Petroleum Development Oman

FOR OMCIAL USE ONLY

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

Loan and Project Summary

Borrower: Sultanate of Oman

Beneficiaries: Ministry of Communications (MOC) and DirectoratesGeneral of Roads (DG)

Amount: US$30.0 million

Terms: Fifteen years including three years of grace withinterest at standard variable interest rate.

Project Obiectivesand Description: The proposed project comprises a three-year time slice

(1986-88) of the five-year highway maintenance programof MOC and DG. It aims to assist institution buildingefforts in MOC and DG in: (i) highway maintenance;(ii) project evaluation; (iii) training for DG staff;(iv) highway safety; and (v) pavement management. Theloan will provide financing for: (a) construction ofhighway maintenance workshops, work centres and trainingcentre extension; (b) procurement of pavement and traf-fic data collection equipment; (c) bituminous surfacetreatment; and (d) consultancy services.

Benefits andRisks: Benefits lie primarily in the institution building

activities in MOC and DG for highway maintenance, proj-ect evaluation and pavement management and a subsequentreduction in reliance on expatriate technical assis-tance. The project would lead to a reduction in highwaytraffic accidents, and to savings in vehicle operatingcosts and road maintenance costs. There are no unusualrisks.

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

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Staff AppraisalReport:'- Sultanate of Oman, Third Highway Maintenance Project

(Report No. 5493-OM).

US$ million equivalentEstimated Proiect Costs: Local Foreign Total

Capital CostsPeriodic Ntce and Minor Improvements 25.7 48.5 74.2Equipment and Spare Parts 0.5 10.3 10.8Construction 8.0 10.2 18.2Technical Assistance 1.4 4.6 6.0

Base Cost 35.6 73.6 109.2

Recurrent CostsRoutine MaintenAnce 29.0 14.5 43.5

ContingenciesPhysical 6.5 8.8 15.3Price-'. 11.3 13.4 24.7

Total Costs 82.3 110.2 192.5

Financing Plan US$ million Equiv. Percent

Goverament 162.5 84Proposed Bank -Loan 30.0 16

192.5 100

Estimated DisbursementsBank Fiscal Year FY86 FY87 FY88 FY89 FY90

Annual 0.1 7.4 8.0 8.0 6.5Cumulative 0.1 7.5 15.5 23.5 30.0

Economic Rate of Return 471

1/ Price escalation for local costs was estimated at 71 for 1985 and 81 for1986-90; foreign-escalation was estimated at 51 for 1985, 7.51 for 1986and 81 for 1987-1990.

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SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

Table of Contents

Page No.

I. INTRODUCTION .............. 1

II. THE TRANSPORT SECTOR ................. 2A. Domestic and International Network 2B. Planning and Administration ......................... 3C. Investment Program and Economic Development ........ 4D. Bank's Role in Transport Sector ....... 4

III. HIGHWAYS AND ROAD TRANSPORT............... -- . 6A. The Highway Network ................................. 6B. Traffic and Vehicle Operating Costs 6C. Highway Safety ....................... 8D. Road User Charges and Revenues ............- ... , 8E. Highway Maintenance and Investment .............. 10

IV. THE PROJECT ..................... .................... 13A. Objectives and Bank Involvement ................... j. 13B. Project Description .......... ............... i- .;. 13C. Engineering ............... a.*a...a..**.. 6-*.. 17D. Cost Estimate ...... 17E. Financing .1................................b..*.. 19F. Implementation .................. *. - 19G. Disbursements ..... .......... 22H. Environmental Impact ........ *......a. ae....6... !.** - 23I. Accounting Systems and Auditing 23

V. ECONOMIC EVALUATION .. 24A. Benefits and Beneficiaries 4............24B. Economic Evaluation ................................... 24

VI. RECOMMENDATIONS ................ 29

(Contd.)

The report was prepared using information from the Omani authorities, theMinistry of Communications (MOC), the Directorates General of Roads (DG, andthe highway maintenance and technical assistance consultants (DarAl-Handasah), Shair & Partners - Lebanon & U.K.) and on the findings of anappraisal mission composed of Messrs. R.S.P. Bonney (Ecopomist) andM.R. Payne (Highway Engineer) who visited Oman in December 1984.

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Table of Contents (Contd.)

Page No.

ANNEXES

1. Related Documents and Data Available in Project File .... ..... 312. Growth of the Road Network ................................... .. 333. Summary of Training, 1978-88 ................................. 344. DG Organization Chart (Northern Region) ..................... 455. DG Organization Chart (Southern Region) ..................... 466. Technical and Economic Criteria for Evaluating

Highway Projects ........... . .. .......................................... . 477. DG Recurrent Expenditures, 1981-1985 ..... ................... 548. Sumnary of Work Centers Requirements for the

1986-1990 Program .................. ........................ 569. Three-Year Project and Five-Year Program Cost Estimates ...... 5710. Estimated Disbursement Schedule and Comparison of Profiles .... 5811. Project and Program Implementation Schedule .................. 6012. Accounting Systems amd Auditing ................. ............. 6113. Relationships Between Year of Resurfacing and

1984 Traffic Flows for Different Pavement Types .... ........ 5314. Proposed Table for Schedule 1, Loan Agreement .............. .. 6415. Terms of Reference and Action Plan for a Study to

Prepare a Highway Safety Program ..... ...................... 6516. Highway Maintenance Equipment (1986-1988) ....... .......... 7217. Roads Proposed for Surface Treatment ........................ 73

MAP

IBRD 18682 - Transportation System

3884D &4433D

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

I. INTRODUCTION

1.01 The Sultanate of Oman has asked the Bank to continue its involve-ment in highway maintenance. Bank participation in the highway sector beganin 1974. The proposed project, comprising highway maintenance management,operations, training and technical assistance, would be a continuation ofthe Second Highway Maintenance Project (Loan 2084-OM). It is based on thefive-year program prepared by consultants financed through that loan. ABank loan of US$30 million is proposed.

1.02 The report was prepared using information from the Omani authori-ties, the Ministry of Communications (MOC), the Directorates General ofRoads (DG) and the highway maintenance and technical assistance consultants(Dar Al-Kandasah (Shair & Partners) - Lebanon & U.K.) and on the findings ofan appraisal mission composed of Messrs. R.S.P. Bonney (Economist) andM.R. Payne (Highway Engineer) who visited Oman in December 1984.

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II. THE TRANSPORT SECTOR

2.01 Until 1970 there was no modern transport system in Oman. The high-way network consisted of only 10 km of paved highway and an unknown lengthof earthen tracks; there was limited coastal and air traffic. Today, thecountry's basic transport system includes an extensive and still growinghighway network, two modern deep-water ports, an oil port, an internationalairport and several civilian and military airfields. Land transport ser-vices currently contribute about 4Z of the non-oil gross domestic product.

A. Domestic and International Network

Highways

2.02 The national highway network is under the jurisdiction of theDirectorates General of Roads (DG) within the Ministry of Communications(MOC). For details of the network, see para. 3.01 and Annex 2. Otherspecial purpose roads and tracks are under the jurisdiction of the PetroleumDevelopment Oman (PDO) and the Ministries of Interior & Defense. The net-work gives adequate coverage for the main needs of most regions of thecountry, and provides good access to the major agricultural areas, oilfields and population centers. The critical need now is to continue toexpand Oman's capacity to carry out effective highway maintenance.

2.03 The size of Oman and the long distances to other countries in theregion, combined with the relatively low population densities, pose chal-lenges in establishing an economically efficient transport system that alsomeets social needs. During the past ten years considerable progress hasbeen made in meeting these challenges and a sound basic infrastructureframework has been developed to serve domestic and international traffic.In the urban regions, especially the Muscat capital area, the growth ofhighway traffic has been such that, despite a large highway development pro-gram, there is still a need for major investments in highway facilities. Inthe rural areas, more and more communities are being connected to the mainhighway network by bituminous surface treated roads with consequent reduc-tions in operating and maintenance costs. Traffic growth, which is pre-dicted at between 1-1/2 and twice the rate of growth of GDP, will clearlyintensify the needs for continued highway improvements in the foreseeablefuture and some older paved highways are reaching the stage where pavementstrengthening operations are needed. Furthermore, intra-regional trade isincreasing which, together with a move towards larger road vehicles, willlead to an increased weight of traffic on international routes. Details ofmajor transport facilities and port airport and highway traffic are given inthe Project File (Annex 1).

Ports and Civil Aviation

2.04 Oman has a number of natural harbors, including the historicallyimportant small port of Muscat in the Capital Area 1/. The completion of

1/ The Capital Area of approximately 350 sq. km surrounds the contiguouscities of Muscat, Muttrah and Ruwi.

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Port Qaboos in 1975, very close to Muscat, provided the country with amodern deep-water port with a capacity of 1.5 million tons of cargo everyyear. The port has eleven berths, ten transit sheds, a cement silo, fishcanning and general deep-freezing facilities, and a grain silo. The nearbyoil Port Fahal serves as the export terminus for Omani oil. Near thesouthern town of Salalah at Raysut, port expansion was completed toward theend of 1980 to handle one million tons a year. There are also severalnatural coastal harbors for dhowL' traffic.

2.05 Civil air transport has developed and regular domestic services nowoperate between Muscat, in the Capital Area, and Salalah in the South andthe regional centers at Khassab (Musandam), Bayah, Buraimi, Sur and MasiraIsland. Seeb International Airport, 32 km west of Muscat, opened in late1972 and can handle the largest commercial airplanes; expansion of therepair and hangar facilities is underway. There are no railways in Oman,although a study has recently been undertaken to investigate the economicviability of building a Gulf Cooperation Council (GCC) railway extendingfrom Iraq to Oman for mineral traffic.

B. Planning and Administration

2.06 Wrarspcrt planning and administration, excepting the Capital Areahighways, are under the direction of the MOC through two Directorates, onein the north and the other in the south; the Development Council is respon-sible for recommending and monitoring overall sectorial objectives and pri-orities within the macro-framework and reports directly to the Cabinet.Foreign technical assistance has played a significant part in the planningprocess and will continue to be needed until a sufficient number of trainedand experienced Omani nationals are available to carry out the work. Thetwo previous Bank projects have contained important technical assistancecomponents which have led to significant improvements in highway maintenanceoperations. These components have included major training efforts which arenow beginning to alleviate the shortages of trained Omani personnel (seeAnnex 3). The proposed project aims to continue this program. Pipelines,certain roads and related petroleum port operations are the responsibilityof the PDO.

2.07 In recent years, the Government has become increasingly aware ofthe need to give proper weight to economic factors in making investmentdecisions and to allocate resources to maintenance. With the recent weaken-ing of the oil market and subsequent lessening in Government revenues, ithas become increasingly important to encourage the adequate preparation ofinvestment and maintenance programs and to ensure that these programs areefficiently implemented. Although Oman has experienced rapid economicprogress in recent years, the per capita capital stock is still low, andthere remains a need to strengthen institutions, raise operational effi-ciency and upgrade the skills of all manpower grades. While continuing todevelop the land transport system to support economic development and

1/ Small, traditional trading vessel.

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political unity, the Government is becoming increasingly concerned with pro-tecting existing investments and introducing a modern highway maintenanceprogram. The continuation of technical assistance and training, in parallelwith development of a periodic pavement strengthening program, is in accordwith the Bank's strategy of promoting the development of the Borrower's owncapabilities. A specific objective of the proposed project would be thefurther development of suitable project evaluation procedures and criteriain the highway sector. The implementation of the investment and maintenanceprograms, prepared according tc these procedures, were agreed atnegotiations.

C. Investment Program and Economic Development

2.08 A Five-Year Economic Plan 1986-90 is being developed but it isquite possible that the 1984/86 period may see a sigrificant slow-down inGDP growth, especially if oil prices continue to weaken. The size of thepublic sector investment budget may consequently be constrained and effortsmust be made to ensure that maintenance is not deferred to make way forir.-estment. Data on fixed public and private capital formation are not yetavailable for 1984, but figures for 1981-83 show that investment in roadtransport accounted for 33Z, 19X and 142 respectively of total infra-structure investment (Project File B.ll). The decline, which is paralleledin financial allocations, is to be expected as the major nighway infra-structure is completed and the effort is transferred towards maintenance andimprovement of the existing network. Through the proposed project, theBank's continued participation in the transport sector would assist, throughregular supervision, in maintaining an appropriate investment/maintenancebalance.

D. Bank's Role in Transport Sector

7.09 The Bank has supported transport development in Oman through threeprojects directed towards highway maintenance managemenL, operations, plan-ning and training. These were Loan 985-OM (US$1.2 million for the highwaysector component), Loan 1441-OM (US$15 million) and Loan 2084-OM(US$15 million), approved by the Board in March 1974, May 1977 and March1982 respectively.

2.10 Loan 985-OM, which was a technical assistance loan to cover plan-ning in agriculture and transport, led to the preparation by consultants ofOman's first five-year highway maintenance program and this, in turn, pro-vided the basic input for Loan 1441-OM which comprised a three-year portion(1978-81) of the five-year maintenance program and included procurement of ahighway maintenance equipment and spare parts, construction of workshops anda training center, a training program for highway maintenance personnel andtechnical assistance by consultants for highway maintenance management,operations and training. Loan 2084-OM covers a three-year portion ofOman's 1981-85 highway maintenance program and is expected to be completedin December 1985: it comprises a continuation of highway routine and peri-odic maintenance, construction and/or modification of highway maintenancecenters, maintenance equipment and spare parts, technical assistance, high-way maintenance cost accounting and training. A P-oject Completion Reportfor Loan 1441-OM, which was fully disbursed in May 1985, was prepared byAugust 1985.

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2.11 The completion of the first project was delayed by almost three anda half years due to slow start-up and finalization of design modificationsto previously completed workshops; the second project is expected to be com-pleted six months later than expected. The projects have been achievingtheir objectives and are being increasingly satisfactorily implemented,leading to significant advances in the level and quality of highway mainte-nance works. There is still a shortage of trained and experienced Omanistaff, especially at more senior levels: the training progress made to dateand estimated future training needs are described in Annex 3. In 1985,under the ongoing project, the number of Omani trainees will reach a peakand thereafter will continue to sustain the annual training requirements.Continued Bank involvement in the expansion of the support infrastructurerequired for systematic highway maintenance, especially regional workshopsand work centers, and in the management, operational and training aspectswould ensure further improvement of maintenance effectiveness. In particu-lar, continued technical assistance would help develop a planned program ofperiodic maintenance for those highway sections that are now approachingfatigue limits.

2.12 Under the proposed project, further technical assistance and train-ing would be provided to sustain and consolidate the institutional gainsachieved under the first and second Highway Maintenance Projects; supportinfrastructure would be extended to periodic maintenance operations, plan-ning and pavement management with the objective of the gradual phasing outof expatriate technical assistance in the highway subsector. A furtherimportant component is the program to upgrade approximately 800 km ofheavily trafficked unpaved roads and to provide them with double surfacetreatment wearing courses. For the most part, these roads link populationcenters with the primary road network and carry average daily traffic inexcess of 400 vehicles. This program will be an important element in thedevelopment of Oman's highway maintenance operations.

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III. HIGHWAYS AND ROAD TRANSPORT

A. The Highway Network

3.01 Since 1973 the network of tracks and gravel roads waintained by theNorthern and Southern Directorates General of Roads (DG) has expanded fromabout 2,500 km to 9,748 km and the network of paved highways (asphaltic con-crete) has increased from about 300 km to 3,267 km (Annex 2 and Map 18682).This growth represents a major increase in the responsibilities of the DGand has been an essential factor in the development of the country'sresources and in providing necessary territorial administrative and socialservices. The average annual growth in the paved network has amounted tonearly 301 and overall vehicle fleet growth has been about 22X annually.Road accidents over the same period have grown at an annual rate of about222 and, whilst improving relative to estimated traffic growth, the totalnumber of accidents is still serious. Fuller details of the development ofthe highway system and design standards are given in the Project File(Annex 1).

B. Traffic and Vehicle Operating Costs

3.02 Traffic statistics in Oman are not good and this hampers highwayplanning. Furthermore, vehicle ownership data are not recorded in suffi-cient detail to establish a reliable fleet composition by vehicle type andmay also overestimate the fleet size. Government is aware of these problemsand proposes to take action to remedy them and the proposed project wouldassist in this (see following para. 3.03). The estimated growth in thevehicle fleet is shown in the table below:

Table 3.1: Vehicle Fleet, 1979-83

1 Annual1979 1980 1981 1982 1983 1/ Increase

Passenger Cars 36,214 46,998 60,082 74,536 96,300 28Light Commercial 36,763 43,941 53,318 63,907 51,900 )Medium/Heavy )Commercial 28,300 2/) 16

Government 7.435 9,142 10,810 12,625 ) _

Total (excl.motorcycles andmilitary) 80,412 100,081 124,210 151,068 176,500 22

1/ 1983 split between light and medium/heavy commercial estimated on basisof traffic counts.

2/ Included in passenger cars and commercial vehicles in 1983.

Source: Royal Omani Police

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3.03 In recent years, the income elasticity of frelght transport demandin Oman has been between 1.5 and 2.0: if the GDP continues to grow at about5 p.a. the medium term growth rate in commercial vehicles could be of theorder of 10X. Growth in passenger traffic (in 1984 about 512 of the totalvehicle fleet of 188,827) depends on a number of factors most important ofwhich is probably vehicle ownership. A recent study indicates that passen-ger vehicle ownership saturation in Oman will be at che level of about 0.3vehicles per capita (similar to Western Europe) and current ownership isabout 0.06 passenger cars per capita. As there is an inverse relationshipbetween, inter alia, the incidence of vehicle ownership and the growth invehicle ownership, the Oman situation indicates that there is considerablescope for further growth in passenger car traffic - especially in areas awayfrom the major cities. Whilst there will be considerable regional vari-ations, and growth rates will be influenced by conditions in neighboringcountries, the overall traffic growth rate will probably be in excess of 102p.a. It is, however, especially important that traffic study and fore-casting resources are strengthened and forecasts are reviewed regularly; theproposcd project will support this objective through technical assistanceand traffic equipment procurement. In 1983, there were 270 companiesregistered in the transport category but it is estimated that there areabout 480 truck owners varying from single vehicle concerns to largecompanies. The industry is limited to Omani ownership but is competitiveand entry is free and controlled only through vehicle construction and useregulations. The national bus company is Government controlled and providesa comprehensive urban and inter-urban service.

3.04 Vehicle operating costs (VOC) for standard vehicles are given indetail in the vehicle operating cost tables in the Project File (Annex 1).Costs have decreased slightly since 1981, generally due to lower tyre andvehicle prices and a minor decline in the price of regular gasoline. The1984 base costs on smooth, flat, tangential roads are:

Passenger car at 60 km/h 11.1 US cents/kmFour-wheel drive pick-up at 60 km/h 32.5 US cents/km7-ton diesel truck at 50 km/h 43.0 US cents/km

The economic analysis employed in preparing the 1986-91 Highway MaintenancePlan has used these costs together with the following coefficients foradjusting the VOC for different operating conditions:

Table 3.2: Operatina Conditions

l/ 2/ Surface Dressed AsphalticVehicle Type Tracks(T) Gravel(G) Gravel Concrete

Cars 1.71 1.40 1.09 1.00Light commercial 1.43 1.25 1.04 1.00Trucks 1.72 1.42 1.06 1.00

1/ An earth road 6-8 meters wide regularly maintained by grading andimportation of selected material when necessary.

2/ Selected granular material maintained by dry grading.

Source: Consultant Dar Al-Handasah 1984.

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In addition to these road types, running costs on unmaintained tracks havebeen estimated by multiplying Track (T) running costs by 1.55, 1.35 and 1.45fnr cars, light commercial and trucks respectively: fixed costs are assumedto e unchanged.

C. Higliway Safety

. ^' Accident data are rather sparse and generalized. However, thereare an estimated 12,000 road accidents per annum of which about 300 arefatal. The accident rate (vehicles per capita compared with accidents per10,000 population) for all accidents is about twice the rate in the USA andthe United Kingdom, and road fatalities compared in the same way are aboutthree times higher. Using modern accident forecasting methods, the accidentrate in Oman is slightly above what would be expected at its stage of high-way and traffic development and, as vehicle ownership rates increase, and iftraffic regulation is effectively enforced, the incidence of road accidentsshould decrease. Nonetheless, rcad safety remains a serious problem. Anaction plan to institute adequate data collection and analysis systems hasbeen prepared and will be implemented as indicated in the project implemen-tation schedule (see Annexes 11 and 15). An action plan to institute ade--quate data collection and analysis systems has been prepared and will beimplemented as indicated in the Project Implementation Schedule (Annex 11).

D. Road User Charges and Revenues

3.06 Direct road user revenues consist of license and vehicle registra-tion fees and import duties. Import duties on vehicles and spare parts isabout 8Z ad valorem but no separate figures are available for these. Sinceaverage import duties in Oman are extremely low, almost the entire amount ofthis 8% duty may be considered as a road user charge. Typical annual vehi-cle registration fees are:

Passenger car RO 41 : US$120Commercial vehicle under 3 tons RO 66 : US$194Commercial vehicles 3-5 tons RO 131 : US$384Commercial vehicle over 5 tons RO 191 : US$560

Indirect road user revenues may also be derived from the rent element 1/ infuel prices which accrue to the Government to the extent that these exceedthe export price, although there is no specific figure for this element asproduction costs are not available. Nonetheless, for a low cost producerthe prices of gasoline and diesel, at about US$1.28 and US$1.26 (equivalent)per US gallon, indicate a large rent element 11. Crude oil, used in produc-ing petroleum products for sale in Oman, carries a premium of approximately10X, introduced in 1983, which is passed on in the price to the road user;in 1983 this source of revenue amounted to US$50 million. Road user reve-nues are thus more than adequate to cover routine maintenance and sufficientto meet, at least, that part of the investment budget allocated to periodicmaintenance (strengthening) of asphalt highways (see Table 3.5, page 11).

L/ The Government share of net revenues derived from fuel sales.

Table 3.3: Direct Road User Revenues(US$ million)

1978 1979 1980 1981 1982 1983

Vehicle Registration 7.0 7.8 9.6 10.7 13.6 19.3Drivers Licenses 0.7 0.8 1.0 1.5 1.8 2.4Oil Premium - - - - - 50.0Estimated Import Dt-ties 16.0 20.0 30.0 34.0 40.0 39.8

Total 23.7 28.6 40.6 46.2 55.4 111.5

Source: Ministry of Communications and Appraisal Mission

3.07 Fuel consumption in Oman has been growing at a significantly slowerrate than the vehicle fleet; this applies to both gasoline and diesel.Between 1978 and 1982 the average consumption of fuel per vehicle hasdeclined by approximately a third from 6.8 tons/year per vehicle to4.4 tons/year per vehicle. Factors which contribute to this trend are:

(a) improved highway system has led to lower fuel consumption andfewer high consumption multi-axle drive vehicles;

(b) a strong trend towards more fuel efficient vehicles;

(c) a growing concentration of vehicles in urban centers and aconsequent reduction in annual vehicle kilometers operated; and

Ed) increasing vehicle ownership levels that tend to lead to areduction in average annual vehicle kilometers.

Consumption of gasoline and diesel has been:

Table 3.4: Fuel Consumption 1978-82('000 tonnes)

S Annual1978 1979 1980 1981 1982 1983 Increase

Super Motor Spirit 122.1 143.2 i51.0 170.5 208.0 243.8 15Regular Motor Spirit 94.5 99.7 111.1 110.8 120.4 124.8 6Diesel 233.5 226.5 284.5 295.6 336.9 375.8 10

Source: BP & Shell Marketing (Oman)

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E. Highway Maintenance and Investment

3.08 The highways maintenance organization comprises a DirectorateGeneral of Roads for the Northern Region based in Muscat and the Directorateof Roads for the Southern Region based in Salalah. Both Directorates have adirect responsibility to the Undersecretary of the MOC. Each Northern andSouthern Directorate comprises a headquarters, work centers, specializedmaintenance teams, workshops and training units. The detailed organizationsare given at Annexes 4 and 5. Whilst the organizational structure of theDirectorates is sound and appropriate for carrying out their duties they areconstrained by staff shortages, especially at sub-professional and profes-sional levels. This situation is improving, aided by training programsunder the First and Second Highway Maintenance Projects (Loans 1441-OM and2084-OM), but the satisfactory filling of most senior professional and manysub-professional positions still depends on employment of consultants andrecruitment of expatriates. Since this need for expatriate assistance isexpected to continue for some time, technical assistance and an extendedtraining program will be important components of the proposed project.

3.09 Highway maintenance planning and control is carried out by theMOC's two DG's, whilst planning and control of highway investment is con-trolled by the MOC headquarters, assisted by consultants. Overall planningand budgeting direction is exercised by the Ministry of Finance and theDevelopment Council. Planning in the formal sense is relatively new inOman. An objective of the proposed project will be to assist in furtheringthe adoption of modern planning procedures and evaluation techniques. Out-line proposals for appropriate project evaluation guidelines are given atAnnex 6 and during project implementation, the Government, with the assis-tance of consultants, will develop these to more appropriately reflect Omaniconditions. A modified draft in Arabic and in English of the guidelineswill be prepared and will be jointly reviewed by the Government and theWorld Bank in accordance with the Project Implementation Schedule (Annex 11).

3.10 The 1981-85 expenditures and planned expenditures on highwayinvestment and highway maintenance are shown in Table 3.5. Until 1984,little periodic maintenance was undertaken, or needed, due to the relativelynew paved road system (see para. 4.04). Maintenance of gravel roads andtracks was mainly limited to grading and other routine works. However,starting in 1984 periodic maintenance of paved roads, including pavementstrengthening became important and a program of bituminous surface treatmentand regravelling also started. In 1984 periodic maintenance was about OR2.5 million (US$7.5 million equivalent) and in 1985 may be about the samelevel.

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Table 3.5: Actual and Estimated Highway Expenditures(US$ '000)

1981 1982 1983 1984 1985 1/

A. Investment-' 37,550 64,916 98,122 121,761 180,441B. Routine Maintenance 9,346 12,005 13,048 14,800 16,078C. (B)/(A) % 25 19 13 12 9

Total 46,896 76,921 111,170 136,561 196,519

cf. Direct Road UserRevenues 46,200 55,400 110,800 (see Table 3.3)

1/ Estimate2/ Includes highway periodic maintenance.

Source: Ministry of Communications

The paved highway system increased from 10 km in 1970 to 3,267 km at the endof 1983. An estimated 1,300 km of paved highways will have been addedbetween 1980 and 1985. The most rapid growth taking place in 1976, 1981 and1982 when 511 km, 400 km and 700 km respectively of highways were con-structed and paved with asphaltic concrete (Annex 2). Provisional invest-ment and maintenance figures for 1986-90 are discussed in para. 3.12.

3.11 During the 1986-90 Plan it will be necessary to provide sufficienttrained personnel and equipment for the highway maintenance cost accountingsystem's effective operation and the proposed project whould assist thisthrough training and technical assistance.

3.12 As approximately 70S of the basic highway infrastructure has beenestablished, the thrust of highway strategy now is towards highway routineand periodic maintenance and strengthening and upgrading the existingnetwork. An exception to this is the continuing need to allocate consider-able resources to the development plan for the Capital Area where severeurban traffic problems, involving flows up to 50,000 vpd, are being ad-dressed by construction of interchanges, widening and new highways, often indifficult rocky terrain and under complicated construction conditions. Thisaccounts for the bulk of investment being carried out in the final two yearsof the current 1981-85 plan. The Capital Area highway system is no longerthe responsibility of the Ministry of Communications but the Ministry ofDiwan Affairs.3'

3.13 The proposed 1986-90 highway maintenance program indicates a budgetlevel for routine and periodic maintenance of about OR 20 million (US$58million) p.a. This amount includes certain improvements and equipment/buildings but overall amounts to about US$4,500/km p.a. The relatively

3/ Cabinet Office.

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high cost/km is partly the result of harsh terrain, abrasive materials,water scarcity, long distances and an underdeveloped maintenanceorganization, and partly due to the existence of a large kilometrage ofgravel surfaced roads carrying relatively high traffic flows. It isproposed to address this matter through improvements to the highwaymaintenance system including a program of surface treatment of heavilytrafficked links to the primary network.

3.14 The proposed 1986-90 investment program is at an earlier stage ofreview but, excluding the Capital Area, it may lead to average annualinvestment expenditure of about OR 70 million (US$200 million) allocatedmainly to highway improvements. The balance between highway maintenance andinvestment, given the level of development of the system and traffic demand,is appropriate.

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IV. THE PROJECT

A. Objectives

4.01 The overall objective is the furtherance of a sustainable system ofhighway maintenance in Oman through:

(a) strengthening of project preparation, planning and implementa-tion procedures including the development of guidelines forproject and program economic evaluation and the introduction ofa pavement management system;

(b) promoting and sustaining effective routine and periodic highwaymaintenance through the development of support infrastructure(highway workshops, work centres, pavement and traffic dataequipment) and sound woLk programs aided by Bank participationin selection of priority works;

(c) training local personnel in necessary skills to undertake plan-ning, implementation and monitoring tasks to achieve Oman'shighway maintenance, investment and highway safety programs; and

(d) the development of an effective program for the control andlimitation of highway accidents.

These objectives were discussed with Government at appraisal and were con-firmed at negotiations.

B. Project Description

4.02 The proposed project, a continuation of the Second HighwayMaintenance Project (Loan 2084-OM), would address the first three years(1986-88) of the DG's 1986-1990 highway maintenance program including:

(a) periodic and routine maintenance, minor improvement andstrengthening of highways;

(b) bituminous surface treatment;

(c) construction of workshops, highway maintenance centers andtraining center extension;

(d) equipment and spare parts for highway maintenance, workshops,pavement data collection and processing, and highway safety; and

(e) technical assistance to the MOC and DG, including training ofstaff.

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4.03 The proposed loan would finance all or part of the foreign exchangecontent during 1986-1988 of:

(a) equipment, spare parts and materials for highway data collectionand processing, and highway safety;

(b) construction of workshops, highway maintenance work centers andtraining center extension;

(c) bituminous surface treatment; and

(d) consultant services and individual specialists for highway main-tenance, pavement management, cost accounting, training, highwaysafety and general technical assistance.

Periodic Maintenance and Minor Improvements

4.04 The Omani paved highway network has increased from 10 km in 1970 to3,267 km in 1984 and is predominantly of high pavement design standard with'weighted average age of just under 6 years. Approximately 700 km are over 8years old, of which 78 km (Dhank Junction-Hafit) were overlaid in 1983/84;most of the remaining 620 km are expected to require overlays during the1986-1990 five-year maintenance program as highway pavements deteriorateunder accumulations of axle loads. In addition, provision has been made fordouble bituminous surface treatment of approximately 800 km of heavilytrafficked connections to the primary network (see Annex 17) and gravelreplenishment of approximately 1,500 km of unpaved roads.

4.05 Periodic maintenance for paved and gravel roads, the program forwhich is detailed in the Draft 1986-90 Highway Master Plan (see Project FileDocument Bl and para. 5.07), would be planned and supervised by consultantsappointed under the proposed project. The sections have been identifiedfrom technical and economic evaluations that demonstrate an aconomic returnof at least 12Z for each highway or highway section (see paras. 3.09 and5.07).

Routine Maintenance

4.06 As for the First and Second Highway Maintenance Projects, theday-to-day cost of operations (salaries, wages, fuels, oils, lubricants,etc.) represent recurrent expenditures not eligible for reimbursement fromthe proceeds of the loan. These are part of the overall cost of the projectand would be met from Government funds (see para. 4.33). The program isdetailed in Project File Documents B2 and B3(see Annex 1). Please refer toAnnex 7 for details of recurrent expenditures 1981-1985.

Consultant Services and Individual Specialists

4.07 During negotiations, the MOC and DG stated that they would call forproposals from a short list of consulting firms, including the consultantscurrently undertaking technical assistance under the Second HighwayMaintenance Project. This would be done in accordance with the proceduresset out in the Bank's "Guidelines for the Use of Consultants by World BankBorrowers and by the World Bank as Executing Agency". August 1981 edition.

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Proposals for (i) highway maintenance management, operations and trainingfor the DG and (ii) general technical assistance to MOC would be called forin Septemoer/October 1986 to endeavour to ensure continuity between con-sultants' services under the Second and Proposed Third Highway MaintenanceProjects.

4.08 Terms of reference for the consultants' services under this Projectwere discussed at appraisal and have been prepared by appropriate modifica-tions to the terms of reference for the ongoing Second Project (see Annex 1,Document B13). The modifications were discussed and agreed at negotiationsand include provisions for expanding the technical assistance to the MOC andDG for:

(a) highway maintenance management and operations (132 man-months);

(b) pavement management (24 man-months);

(c) cost accounting (12 man-months);

Cd) the training program for highway maintenance supervisors,operators and mechanics (132 man-months);

Ce) highway safety (24 man-months); and

Cf) general technical assistance in administrative, planning andoperations support of MOC and DG, including the collection andprocessing of pavement and traffic data (132 man-months).

4.09 The project also provides for 60 man-months of in-line services ofindividual specialists, such as a highway safety expert, and technicianswithin the DC's organization. Specific job titles, descriptions andman-months are in accordance with a Training Plan of Action prepared by theconsultants under the Second Highway Maintenance Project and adopted by theDG.

Training

4.10 The three-year (1986 to 1988) training program for highway mainte-nance personnel would carry on the program begun under the First HighwayMaintenance Project and continued in the Second and would be speciallyaddressed to maintenance supervisors, equipment operators, drivers andmechanics. Training results are encouraging and the throughput of traineesis increasing satisfactorily - 105 attended courses in 1983, 291 in 1984 and616 are planned for 1985. The 1986-1988 training program aims to provideinstructional courses for 310, 390 and 450 trainees respectively. The over-all training program is aimed at substantial reduction of reliance on expa-triate skill by the project end (see Annex 3).

4.11 Technical assistance and Arabic-speaking instructors required forthe implementation of the three-year program would be provided under theproject. Newly-trained Omani instructors would continue to be upgraded andwork alongside the training specialists. One of the expatriate staff would

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act as the senior training adviser to DG, and be responsible for planning,implementing and supervising all DG training activities which are directedby a Training Committee through a Training Section Chief.

4.12 The program would include the continued operation of the road andmechanical training production units (RTPU and MTPU), the Training Sectionin DG (established under Loan 1441-OM), the procurement of training equip-ment and materials, the continuation of training consultancy services, andthe recruitment of Omani and/or other Arabic-speaking instructors.

4.13 Road foremen/supervisors and operators/drivers would undergo fieldtraining at the RTPU to gain experience under actual working conditions.

4.14 Training of mechanical staff would be conducted mostly at theAzaiba workshop (MTPU). Repairing worn and broken-down and servicing newequipment would continue to form the basis of the training of mechanicalpersonnel.

4.15 Periodic sem-nars would be held regularly for middle and high-levelstaff by technical assistance specialists.

4.16 Details of the training program, including the funds for implemen-tation and operation of the RTPU and MTPU, were discussed and agreed duringnegotiations (see Annex 3 for estimated training requirements).

Construction of Workshops, Highway Maintenance Centersand Training Center Extension

4.17 Included in the project are two new workshops proposed at Ibra andHaima to complement the four workshops at Azaiba, Salalah, Ibri andAl Ghaliel constructed in 1982 under the First Highway Maintenance Project.Their construction would complete the original program envisaged under theFirst Highway Maintenance Project. Ibra workshop would serve Eastern AreasA & B and Haima, Interior B (see Map 18682).

4.18 Also included in the project is the DG program for development of24 work centers throughout the country either by new construction or modifi-cation of contractor's camps after completion of highway construction(Annex 8). Work centers are sited within the maintenance areas into whichthe national network has been divided (see Map 18682). The work center pro-gram began in 1984 with construction at Ibra. Two more work centers at Ibriand Birkat Al Mawz are scheduled to be built in 1985 under the ongoingSecond Highway Project (Loan 2084-OM). For the 24 work centers in the proj-ect (19 in the North, 1 on Masira Island and 4 in the South) the intendedphasing of construction is 8 in 1986, 8 in 1987 and 8 in 1988.

4.19 The first phase of the training center at Azaiba, near Muscat, wascompleted in October 1980. The second phase, included in the proposed proj-ect, will provide extra classrooms and offices that are needed now to copewith the expanding and continuous training program.

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Highway Maintenance Equipment and Spare Parts

4.20 The numbers and types of Ihighway maintenance equipment and spareparts to be procured have been asse^sed from the numbers and condition ofthe existing inventory, work loads by usint--nance activity, equipment pro-ductivity rates and spare parts consumption rates. A provisional list ofequipment and related spares to be procured was discussed during negotia-tions (see Project File Document B12 and Annex 16).

Equipment, Spare Parts and Materials for:

4.21 Highway Data Collection and Processing. The project includes extrapavement data collection equipment to supplement that procured under theSecond Highway Maintenance Project so that data can be collected simulta-neously at several selected locations on the highway network for the pur-poses of highway maintenance, construction planning, pavement management andaxle load control consistent with legal vehicle construction and use regu-lations. A provisional list of equipment was discussed at negotiations (seeProject File Document B12).

4.22 Highway Safety. Materials such as guard rails, highway signs andequipment such as skid resistance meters would be part of the project. Alist of equipment and materials would be prepared after the consultants haveundertaken a preliminary study.

4.23 Training. Extra items of equipment to supplement the trainingequipment procured under the First and Second Highway Maintenance Projectswill be procured by the DG as necessary to operate the training centreextension.

C. Engineering

4.24 The five-year maintenance program was developed by the technicalassistance consultants to the DG under the previous Loan 2084-OM (seeProject File Documents B2 to B8) and is satisfactory.

4.25 For asphaltic overlays and bituminous surface treatment, the DG,with the help of the technical assistance consultants, will continue to col-lect data, including traffic counts, axle load data, and deflection tests onwhich to base the detailed designs and timings of the overlays and surfacetreatment of those sections which have been identified as having an economicreturn of not less than 122 (see paras. 3.09, 4.05 and 5.07).

4.26 Standard work center designs and bidding documents have been pre-pared by consultants; layouts will be modified as required to suit particu-lar site conditions.

4.27 The second phase of the training center has been designed by adapt-ing the original design to take account of the present and future trainingneeds.

D. Cost Estimate

4.28 The estimated project costs based on June 1985 price levels are inTable 4.1.

Table 4.1: PROJECT COST ESTIMATES

Estimated Cost Estimated Cost % TotalS-Year Program 11986-90) 3-Year Project (1986-88) Proposed Expenditures

MOC/OGR RO million US milliorn Bank to beRO m US$ m Local Foreign Total Local Foreign Total Participation Financed

CAPITAL COSTS

1. Periodic Maintenance & MinerImorovementl

(a) Asphalt Overlays 19.33 55.99 4.43 10.34 14.77 12.85 29.96 42.81 - -(b BSituren Surface Treatment 16.49 47.80 3.95 5.94 9.89 11.46 17.22 28.68 8.43 60ici Gravel Replenishment 1.55 4.50 0.47 0.46 0.93 1.35 1.35 2.70 - -

2. Eq1i2ifML G SDnjrg Parts for:(a) hIigiway Maintenance 4.60 13.33 0.17 3.29 3.46 0.50 9.54 10.04 -

(bi Workshops 0.21 0.60 0.01 0.15 0.16 0.02 0.43 0.45 0.43 -(cL Pavement and Traffic

DatA Collection 0.10 0.29 - 0.10 0.10 0.01 0.28 0.29 0.28 95

3 Cos trtc.IQLi(al Workshop% 1.27 3.70 0.26 1.02 1.28 0.74 2.96 3.70 2.96 80(b) Higlwiy Maintenance Centers 4.62 13.40 2.31 2.31 4.62 6.70 6.70 13.40 6.70 50(ci Traininig Center Extension 0.36 1.05 0.18 0.18 0.36 0.53 0.52 1.05 0.52 50 _

.1. LrLCnig11 A5ssetance(a) Coisultanits & Technicians

for maint. management,training & planning .. j2 6.00 0 1.58 La 2.07 A.-L 4.5 6.00 4.59 75

Subtotal 50.60 146.66 12.27 25.37 37.64 35.57 73.55 109.12 23.91 -

S. C_ttL1ljQencissX 2/(a) Physical Contingencies 5.06 14.67 1.23 2.54 3.77 3.56 7.36 10.92 2.39 -(b) Cost Escalation 11.43 33.12 2.07 .78 5.85 6.01 10.97 16.98 3.70 -

TOTAL CAPITAL COSTS 67.0 194.45 15.57 31.70 472 45.14 91.8 137.02 30.00 -

RECURRENT COSTS

o. RouL2n3 Mainteuiance 25.00 72.45 10.00 5.00 15.00 28.v8 14.49 43.47

7. C&llL!llQaS-cir.iCla) Physical Contingencies 2.50 7.25 1.00 0.50 1.50 2.91 1.44 4.35(b) Cost EscalaLion 7.09 20.56 1.8.fi 6 5.31 2.39 7.70

!OTAL RECURRENTY COSTS 34.59 100.26 12.84 63 19.16 37.20 18.32 55.52

1, Julie 1985 base date.2 Price esc5lation for local costs estimated at 7: for 1985 and 8: for 1986-90;

foteigi, escalation estimated at 5; for 1985 7.5t for 1986 and St for '987-1990. for Items 1. 2 and 3.

Soace; Mission Estimates, August 19b5.

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4.29 The total capital cost of the proposed three-year proiect has beenestimated on the basis of the costs and experience from the first two high-way maintenance project at US$109 million in June 1985 prices of whichUS$74 million is foreign exchange; physical and price contingencies raisethese estimates to US$137 million and US$92 million respectively giving aforeign exchange component of 67X. Total cost of the proposed three-yearproject including recurrent costs is US$192 million of which US$110 million(57Z) is foreign exchange.

4.30 The total cost for the five-year program including routine mainte-nance has been estimated at US$194 million in June 1985 prices of whichUS$130 million is foreign exchange; physical and price contingencies raisechese estimates to US$295 million and US$163 million respectively (seeAnnex 9).

4.31 During negotiations, the cost estimates of the three-year projectand the five-year program were dismussed with and confirmed by theGovernment's representatives (Table 4.1 and Annex 9).

E. Financing

4.32 The proposed loan of US$30 million, which would finance specificproject items as shown in para. 4.03, represents 222 of the total cost ofthe three-year project and 152 of the five-year program excluding routinemaintenance costs and 16? and 10X including routine maintenance costs. Theloan would be made to the Government of the Sultanate of Oman; the directbeneficiaries of the loan are the MOC and the DG. The Government wouldfinance the additional foreign costs of the five-year program (US$133million) and all local costs (US$132 million) of which less than US$2million is direct taxes.

F. Implementation

Responsibility for Implementation and Supervision

4.33 The MOC, with the assistance of consultants, would be responsiblefor the procurement of construction and supervision of periodic maintenanceasphalt overlays, bituminous surface treatment, workshops, work centers,training center extension and highway maintenance equipment and spareparts. The DG, in the Northern and Southern Regions, also with the assis-tance of consultants, would be responsible for the highway maintenance man-agement, operation and training programs, including the procurement ofequipment and spare parts for workshops, work centers, training, pavementdata collection and highway safety.

ProcurementBank-Financed Components

4.34 The equipment for pavement data collection and highway safety isvaried and specialized, with maximum size of individual contracts beingunder $50,000 and in aggregate value not exceeding $370,000. Depending onthe degree of specialization, most of this equipment which is specialized or

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proprietary in nature will be procured through international shopping, inaccordance with procedures acceptable to the Bank.

4.35 Contracts for bituminous surface treatment will be awarded afterInternational Competitive Bidding (ICB) in accordance with the Bank's"Guidelines for Procurement". Works would be packaged to make the contractsattractive to larger contractors.

4.36 Contracts for the construction of highway maintenance workshops,work centres and the training centre extension will be awarded after LocalCompetitive Bidding (LCB) under procedures which are satisfactory to theBank subject to certain modifications and waivers which were discussed andagreed during negotiations. The simple nature of construction, the scope ofwork and the proposed program of construction render LCB appropriate since(i) ample competition is assured through the participation of numerous localand foreign contractors already working in Oman and other interested foreignfirms may participate in the bidding; (ii) the work sites are widely scat-tered geographically which restricts packaging; and (iii) the constructionschedule of about R units per year over three years has been planned tocorrespond to the build-up of trained personnel to man the facilities andallows time for design layout cnanges to be made to suit site conditions.

4.37 All procurement documentation for the pavement data collection andsafety equipment and for the workshops, work centers and training centerextension and bituminous surface treatment contracts will be reviewed by theBank before being issued. All proposed contracts, together with biddinganalysis, will be subject to Bank review prior to contract award except thespecialized equipment contracts, which will be subject to selective postreview.

4.38 The maintenance management/training and general technical assis-tance would be carried out by qualified and experienced consultants selectedin accordance with the Bank's "Guidelines on the Use of Consultants" (seepara. 4.08).

Non Bank-Financed Components

4.39 The periodic maintenance program contracts would be procuredthrough ICB procurement procedures which allow the many local and foreigncontractors already working in Oman to participate; other interested foreignfirms are also allowed to bid and, if successful, must register in Oman.For other maintenance contracts such as regravelling, the bid invitationswill be advertised regionally. Equipment procurement will follow proceduresvery similar to international competitive bidding with internationaladvertising.

4.40 During loan negotiations, the methods of procurement were confirmedwith Government.

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Table 4.2: Procurement Table(US$ million)

Procurement Method TotalProiect Element ICB LCB Other Cost

Periodic MaintenanceAsphalt Overlays 54.14 - - 54.14Bituminous Surface Treatment 36.27 - - 36.27

(10.89) - (10.89)Gravel Replenishment 3.41 3.41

Equipment and Spare Parts for:Highway Maintenance - 12.70 12.70Workshops - 0.57 0.57

(0.56) (0.56)Pavement and Traffic Data - - 0.37 ' 0.37Collection (0.36) 2' (0.36)

ConstructionWorkshops 4.68 4.68

(3.82) (3.82)Work Centres 16.95 16.95

(8.65) (8.65)Training Centre Extension 1.33 1.33

(0.67) (0.67)Technical Assistance

Consultants Services - - 6.60 '' 6.60(5.05) (5.05)

90.41 39.64 6.97 137.02(10.89) (13.70) (5.41) (30.00)

1/ International shopping.2/ Figures in parentheses indicate loan proceeds.3/ Consultant employment in accordance with Bank's Guidelines on the Use ofConsultants.

Proiect Implementation Schedule

4.41 The highway maintenance program finonced under this loan wouldcover a period of three years beginning January 1986. Asphalt overlays areexpected to start in late 1985. Highway equipment is expected to be pro-cured annually with the main order occurring in 1986. Bids for constructionof highway workshops are expected in 1986 and 1987; bids for work centersare expected to begin in mid-1986 and be repeated in 1987 and 1988. Thetraining program and the general technical assistance, including projectevaluation, highway safety, cost accounting and pavement management, wouldeffectively be a continuation of the program financed under Loan 1441-OM,

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which started at the beginning of 1978, and Loan 2084-OM, which ends inDecember 1985. During negotiations, it was agreed that by the datesspecified in the project implementation schedule: (i) the highwaymaintenance cost accounting system will be fully implemented; and (ii) areport describing in detail the proposed pavement management system andimplementation schedule will be prepared and submitted to the Bank. Thefour-year implementation schedule, which was discussed and confirmed withthe Government during negotiations, is shown in Annex 11.

G. Disbursements

4.42 The proceeds of the proposed Bank loan would be disbursed on thefollowing basis:

(a) 95X of the total costs of pavement data collection and highwaysafety equipment;

(b) 80X of the total costs of highway workshops, which representsthe estimated foreign exchange component of this item;

Cc) 60% of the total costs of bituminous surface treatment, whichrepresents the foreign exchange component of this item;

-d) 50Z of the total costs of highway work centers and trainingcenter extension, which represents the estimated foreignexchange component of this item; and

(e) 75Z of the total costs of the consultants undertaking mainte-nance management/training and general technical assistance andof individual technicians serving directly on DG staff.

4.43 The estimated cumulative quarterly disbursement schedule shown inAnnex 10 assumes that the loan would be disbursed in five years. Duringnegotiations the Government and the Bank discussed and confirmed theschedule of disbursements. The estimated disbursement schedule, which hastaken into account the disbursement performance under the Second HighwayMaintenance Project, is compared with the historical Bank disbursement pro-file for highway projects in Annex 10; this shows that the proposed loanwould be disbursed at a somewhat faster rate than the historical profilebecause more than 60S of the loan proceeds are applied to relatively shortduration construction of highway maintenance support infrastructure andfixed term technical assistance.

4.44 The closing date for the proposed loan is June 30, 1990. To enableprompt payment of all reimbursable expenses, provision will be made for arevolving fund through a special account in US$, opened and operated in theCentral Bank of Oman. After loan effectiveness and at the request of theBorrower, the Bank would disburse into this account US$1 million, an esti-mated three-months needs of the Bank share of eligible expenditures. Theaccount would be replenished periodically on the basis of withdrawal appli-cations supported by the Central Bank's statements of account and details ofexpenditures. During negotiations agreement was reached on this disburse-ment mechanism.

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H. Environmental Impact

4.45 The project elements have no detrimental effects on the environment.

I. Accounting Systems and Auditing

4.46 Government accounting, budget preparation, monitoring and auditingare undertaken thoroughly in Oman (Annex 12) and are consistent with thoseof other countries of the region. Bank review of the system shows that thequality of budget preparation, control of expenditures and accounting pro-cedures is acceptable and adequate in scope and in the comprehensiveness ofchecks and balances. In addition to audit within the spending agencies andby the Ministry of Finance, there is an independent Financial InspectorDirectorate of the Cabinet which audits selected accounts but the prepara-tion of audit reports and certificates by this body is not normal practice.The professional ability and independence of this Directorate is acceptableto the Bank and agreement was reached at negotiations that an adequate formof audit report for the separate, special project account will be preparedand submitted to the Bank not later than six months after the end of eachfiscal year. Assurances were obtained from Government during appraisal andnegotiations that a separate project account would be maintained and theform of this was confirmed at negotiations.

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V. ECONOMIC EVALUATION

A. Benefits and Beneficiaries

5.01 The proposed project will continue to support the development ofthe MOC Directorates' capabilities for cost effective routine and periodichighway maintenance and the implementation of a pavement management program,thereby deriving significant economic benefits from preserving and strength-ening the national highway network and limiting vehicle operating costs. Atthe same time, technical assistance will be provided to support these opera-tions and to assist in designing and implementing appropriate data collec-tion methods and project evaluation techniques that will facilitate theidentification of economically viable highway projects.

5.02 Economic benefits generated by the proposed project will accrue to:

(a) the Sultanate Government through the development of more costeffective routine and periodic maintenance which, in turn,will save money through preserving the existing infrastructureand, as a result of the training program, reduce dependence onexpatriate staff;

(b) the road transport industry as a result of lower vehicleoperating costs and an increased opportunity to serve widermarkets; and

(c) owner drivers of passenger and "own-account" commercialvehicles.

Free competition exists in the road transport industry and, if lower vehicleoperating costs are achieved as a result of highway improvements and mainte-nance, it is possible that some benefits could filter down to other sectorsof the community in the form of lower transport prices. However, it is morelikely that the benefits will take the form of improvements in reliabilityand accessibility of the transport services particularly in remote areas.

5.03 The project should also lead to improvements in traffic safetythrough highway improvements (including pavement markings and road furni-ture), vehicle controls and highway user education.

B. Economic Evaluation

Routine Highway Maintenance

5.04 It is evident that highways must be maintained to fulfill theirdesignated functions in the most cost effective way, including the prolonga-tion of their economic lives. Whilst the Bank loan would not finance rou-tine maintenance and workshop equipment, it would include finance forworkshop and work center facilities and technical assistance which make asignificant contribution to developing an effective highway routine

w

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maintenance system. Moreover, the continued development of effectiveroutine maintenance is a condition of Bank participation. In Bank-financedprojects where an economic analysis has been made of routine maintenance,rates of return have frequently exceeded 100X and have seldom been less than40Z. The ongoing Second Oman Highway Maintenance Project was estimated toyield a rate of return of 44Z on overall routine maintenance. Employing theresults of recent researches (e.g. the Highway Design Model (HDM) and RoadTransport Investment Model (RTIM) pavement performance/vehicle operatingcost sub-models), the Oman 1986-90 routine maintenance program for unpavedroads and paved highways has been developed to maximize the net presentvalues of benefits derived from vehicle operating cost savings, highwaymaintenance cost savings and from limiting pavement reconstruction costs.Accordingly, and varying with highway standard and traffic flow, optimalroutine maintenance procedures have been designed so that the NPV is alwaysmaximized when using a 12X discount rate. The results of these maintenanceprocedures will be monitored through the new DG cost accounting system andfield measurements to be financed under the proposed project. On average,the incremental rate of return achieved by moving from a maintenance budgetof 50Z of the estimated optimal budget to the optimal budget level is aboutlOOZ. but although the NPV continues to increase at maintenance levels up to50S above the estimated optimum maintenance expenditure, there are diminish-ing returns. The formal methodology through which these maintenance levelswere derived are described in the Project File (Annex 1). Optimum levels ofroutine maintenance vary according to highway type and traffic partic-ularly. Unpaved roads are especially sensitive to traffic flows. In 1984prices optimum routine maintenance for asphaltic concrete roads is estimatedat US$1,860 per kilometer per year.

Periodic Highway Maintenance and Improvement

5.05 The progressive introduction of a properly researched highway pave-ment management program in Oman is being prepared. Such a system should notrequire frequent specialized studies but should facilitate planning andimplementing technically and economically sound highway maintenance andbetterment programs. It should also analyze the merits of alternativepolicies or policy mixes of maintenance and improvement. Where it can beshown that different policies, such as upgrading gravel surfaced roads todouble surface treatment roads or the earlier provision of an overlay orstrengthening layers, yield incremental cost: benefit ratios greater than1.0 at an appropriate discount rate (currently 122) they will be recommendedfor inclusion in the highway program.

5.06 As an interim measure, a number of traffic thresholds relatingtypes of road and periodic maintenance or improvement policies have beenestablished. These thresholds have been used in developing the 1986-90Highway Maintenance Program. Roads identified in this process, or throughthe use of traffic warrants, are then subjected to more detailed individualanalysis. Examples of these relationships as applied to asphalt overlaywork are given in Annex 13.

5.07 Between 1970 and 1976, the kilometrage of asphaltic concrete roadsincreased from practically zero to 1,219 km. Some of the pavements havealready required overlaying and strengthening together with some geometricimprovements (para. 4.04), and the Bank's participation in the SecondHighway Maintenance has assisted in this. The need to resurface, strengthen

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and in some cases upgrade the older roads in the highway network continues,and a priority highway overlay and strengthening program has been identified:

Table 5.1: Overlay Programme

Year ofOriginal Proposed Estimated Rate of-"

Length Construc- 1983 Year of Cost Returnkm tion ADT Overlay US$ '000 S

1. Seeb Palace toRustaq Jn. 1 ' 64 1973 7000 1986 7,500 37

2. Tbri to DhankJunction 58 1976 3000 1986 5,300 14

3. Rustaq Jn. toAl Khaboural' 129 1973 7000 1987 15,100 44

4. Al Khaboura toKhatmat Mulalah-' 69 1973 5000 1988 8,100 34

5. Maladdah to Rustaq 46 1976 2400 1988 4,200 26

6. Wadi Hatta Road-L 23 1978 3450 1988 2,100 15

7. Salalah to Thamrait-' 80 1976 1650 1989 9.400 27

Total 469 51,700 31

1/ Coastal two-lane carriageway only.2/ Detailed calculations are available in Documents B2 and B8 of the Project

File (Annex 1).3/ Not included in Cost Table 4.1 as timing is outside the project period.

This provisional program will be reviewed regularly by the SultanateGovernment, and final scheduling of works will be coordinated with resourceavailability and continued pavement monitoring. The overall rate of returnis acceptable and all projects exceed the test discount rate of 12X.

5.08 As the program of highway periodic maintenance and strengthening isplaced on a regular planned basis, with adequate resource allocation, atten-tion must turn to the modernization of the secondary and tertiary highwaynetworks. In particular, attention will be paid to rationalizing this sys-tem and concentrating planning and implementation effort on the economicallycritical links. The technical assistance component of the ongoing HighwayMaintenance Project has already developed certain daily traffic thresholdsfor upgrading unpaved roads based on savings in VOC and highway maintenance

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costs and which meet a 12% rate of return criterion. These thresho1 dq havebeen used in establishing in programme of surface dressing described InAnnex 17 and to be financed under the project. Currently thresholds are:

Table 5.2: Improvements Proposed According to ADT in Forecast Year

Improved to Improve toTerrain Leave as Track Compacted Surface Treated

Flat Less than 230 230 - 400 Greater than 400

Hilly Less than 300 300 - 350 Greater than 350

Mountainous Less than 350 350 - 425 Greater than 425

Note: Clearly flexibility must be exercised to permit practicable stageconstruction policies: e.g. it would not be sensible to improve tocompacted a track carrying 350 vpd unless there is zero growth.

These thresholds will be studied and refined as more traffic, constructioncost (currently estimated contract prices are $75,000 per km) and road per-formance data become available. Moreover, the scope of the analysisdescribed in Chapter 6 of the 1986-90 Highway Maintenance Plan (Annex 1, B2)will be expanded under the project to include an evaluation of the develop-mental impact of proposed highway improvements. It will be seen in Annex 17that average daily traffic on the roads proposed for double bituminous sur-face treatment exceed the calculated threshold levels, frequently by a largemargin.

Training

5.09 Conventional justification criteria cannot be applied to trainingactivities. Nonetheless, these activities are an essential cumponent of theprogram to improve the quality and cost effectiveness of planning and high-way maintenance and to reduce reliance on foreign experts. Progress inachieving training targets, together with future programs are described inAnnex 3.

Technical Assistance

5.10 Approximately 60Z of the technical assistance component of theproject is estimated to be an integral part of the highway maintenance plan-ning and implementation. As such the cost is included in the evaluation ofthe maintenance program. The remaining 401 is variously distributed overother activities especially training, cost accounting and highway safetywhich it is not feasible to evaluate in conventional economic terms.However, such activities are essential for the efficient functioning of theDG's and in reducing the accident rate.

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Overall Economic Justification

5.11 The road maintenance component of the project, including an esti-mated 60X of the technical assistance budget, comprises about US$105 millionof the total estimated project cost of US$109 million - nearly 972. Themain items are about US$43 million for periodic asphalt maintenance,US$29 million for bitumen surface treatment, US$2.7 million for regravel-ling, US$29 million for resources required for routine maintenance andUS$3.6 million for technical assistance directly serving the maintenanceprogram. These yield rates of return between 26Z and over 100l and overallabout 471 and have been derived from calculations in Documents B2 and B8 inthe Project File (Annex 1).

Pject Risk

5.12 Satisfactory project implementation, judging by progress now beingmade under the Second Highway Maintenance Project, is being given high pri-ority by Government. The importance of adequate and timely routine andperiodic maintenance is clearly accepted and the proposed level of expendi-ture is appropriate to the country's needs. The principal risks lie inbureaucratic delays, especially in personnel recruitment. These could leadto major periodic maintenance being delayed by about a year but would haveno significant impact on either the achievement of the proposed projectobjectives or economic viability.

- 29 -

VI. RECOMMENDATIONS

6.01 During loan negotiations, the Government confirm,ed:

(i) the project objectives (para. 4.01);

(ii) the three-year and five-year cost estimates (para. 4.28);

(iii) the methods of procurement (para. 4.40);

(iv) the project implementation schedule (para. 4.41);

(v) the schedule of disbursements (para. 4.43 and Annex 10); and

(vi) the five-year highway investment and maintenance program(paras. 2.08, and 4.31); and

(vii) the collection of data for pavement performance and for theimprovement of highway safety and the use of the data fordetailed designs (paras. 3.01, 3.05, 4.21 and 4.22).

6.02 Also during loan negotiations, the Government agreed:

(i) to open a revolving fund/special account for the project (newpara. 4.44);

(ii) to establish and operate a separate project account and submitan audit report to the Bank not later than six months after theend of each fiscal year (para. 4.46);

(iii) to continue to develop guidelines for project evaluation accord-ing to the project implementation schedule (para. 3.09);

(iv) to continue a comprehensive training program satisfactory to theBank, make available sufficient numbers of experienced personnelto be trained as instructors, recruit sufficient manpower to betrained for maintenance operations, and continue to maintain apermanent training section within the DG (paras. 4.01(c) andparas. 4.10 through 4.16);

(v) to employ qualified and experienced consultants, to undertakethe highway maintenance management. training program and generaltechnical assistance aspects of the project, including highwaysafety, in accordance with agreed terms of reference and accord-ing to the Bank's Guidelines for the Use of Consultants(paras. 4.07, 4.08 and 4.09);

(vi) to continue to take such steps as shall reasonably be requiredto ensure that the dimensions and axle loads of vehicles usingpublic highways within its territories are consistent with thelegal vehicle construction and use regula'ions (para. 4.21);

- 30 - t

(vii) to implement and agree with the Bank an action plan for highwaysafety in accordance with the implementation schedule(para. 3.05);

(viii) to continue to expand a cost accounting system for highway main-tenance in accordance with the implementation (para. 3.11 and4.41); and

(ix) design a pavement management system for scheduling highway rou-tine and periodic maintenance in accordance with the implementa-tion schedule (para. 4.01(a), 4.08(ii), 4.41 and 5.05).

6.03 During loan negotiations, the Government discussed with the Banktheir proposals for highway maintenance equipment and spare parts(para. 4.20 and Annex 16) and equipment for pavement data collection, high-way safety and training (para. 4.21, 4.22 and 4.23).

6.04 The project is suitable for a Bank loan of US$30 million equivalentto the Sultanate of Oman for a 15-year term, including a three-year graceperiod at the standard variable interest rate.

- 31 -

ANNEX 1Page 1 of 2

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

Related Documents and Data Available in Project File I/

A. Reports and Studies on the Transport Sector

Al Appraisal Report of a Highway Maintenance Project in Oman,Report 1508a-OM, dated May 17, 1977 (Grey Cover).

A2 Appraisal Report of a Second Highway Maintenance Project, Report3191-OM dated December 8, 1981 (Grey Cover).

A3 The Five-Year Development Plan 1981-1985, Sultanate of OmanDevelopment Council.

B. Reports and Studies Related to the Project

BI Highway Master Plan, 1986-1990 (April 1985).

B2 Highway Maintenance Plan, 1986-1990 (May L985).

B3 Maintenance Inception Report and Draft Update of 1981-1985 RoadMaintenance Plan (October 1983).

B4 Final Report on Appropriate Cost Accounting System(December 1980).

B5 Training Plan of Action (May 1984).

B6 Training Report, 1978-1988 (December 1984).

B7 Training Program 1985 (December 1984)

B8 Economic Returns of Road Maintenance and Accident Analysis(September 1984).

B9 Update of Highway User Costs (December 1983).

B1O Recent Economic Developments and Prospects (October 1984).

1/ For further background information, please refer to Project File forLoan 2084-OM, Second Highway Maintenance Project, December 1981.

- 32 -

ANNEX 1Page 2 of 2

Bll Statistical Year Book (1983).

B12 Indexed List of Project Components.

B13 Agreement With Consultants Signed December 23, 1982.

C. Tables and Other Data Related to Project

Cl List of Paved Roads Maintained by DGR (Northern Region).

C2 Paved Roads Summary.

C3 Map - The Road Network (January 1984).

C4 Sample Cost Accounting Forms (in Arabic).

C5 Economic and Strategic Study of the Oman Port Facilities.

SULTANATE OF OMANSTAFF APPRAISAL REPORT OF A Fig. 2 2

THlIRD HIGHWAY MAINTENANCE PROJECT

Growtli of the Road Network8000 ---- JWA -'''!' 'I -- JW

000 -.-- - -:- . -I I ---I : 1:-..- -'; 1I.A- -tX

O ~. . -.. __. -rc ad _..-....... . ...... _. . -. _ _...........- _._ .- ...-.. __ .. __

o Maintained by D G R\ _

E t

wt40 ..... ..-.-..- -_.-_....-.-..._ - 7 _.____ __,O . Trc roads rood

0

4000 t ----.

w

Ij -

0 01 P~~~~~~~~~~~~~~~~~~~Gavel roads

2000 - | - Maintained byDG.R.~~~o. I II- #

019 70 1975 1980 1985

ANNEX 3

SULTMATE OF 2MAN

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

Summary of Training - 1978-1988

1978 - 1982

During the previous project approximately 275 employees receivedtraining in both basic skills and in upgrading their skills.These courses consisted of apprentice mochanics courses, upgradingskilled mechanics and equipment operator training.

Out of these trainees there were 9 students taking an ApprentlceMechanics Petrol course and 6 students taking an Apprentice Dieselmechanics course. These two courses were carried forward into thepresent project and the petrol course students were graduated inApril 1983 and the Diesel students graduated in August 1983.

Approximately 90X of the above students are still employed by theDirectorate.

1983

The first *si mouths of the project were devoted to the followingact..vities:

Furnishin the Training Center at Azaiba, assigning an administrativestaff and making arrangements for the necesary transport.

Training aids on hand were reviewed and cataloged, additionritraining materials were placed on order.

Instructors were interviewed and assigned to the training sectionand the Road Traiing Production Unit was re-activated.

A study was made of the training needs of the Directorato a&-A allmechanical employees were trade tested to determine the lerel ofskills so that correct types of courses could be prepared tc moetthis need.

Syllabus for all courses were prepared and individual candidatesfor the various courses were nominated to attend these courses.

At the beginning of June the Tpaining Center was officially openedand training was started.

Thefirxt group of 10 Petrol students and 9 Diesel studentsnominated to take tLe Apprentice .Mechanics course that started inAugust were taken from the employees of the Directorate, i-.Mechanic helpers, and other interested unskilled persons.

- 35 -

ANNEX 3

1983 contd.

During the period June through December the following courseswere given, also indicated are the length of each course andthe number of students involved.

Apprentice Diesel Mechanics 5 months 19 student;sApprentice Petrol Mechanics 5 months 18 studentsUpgrade Diesel Mechanics 2 months 14 studentsUpgrade Petrol Mechanics 2 months 14 studentsUpgrade Vehicle Electricians 2 months 2 studentsWork Center Supervisors Seminar 1 day 18 studentsMotor GFader Operator 3 veeks 12 studentsShovel Operator 3 weeks 8 students

Total 1983 105 students

1984

With the assigment of additional instructors the scope of thetraining program was expanded during this year aid additionaltypes of training were undertaken.

For the scond series of Apprentice Training courses that startedin 1984, 9 petrol students and 9 diesel trainees vere recruitedfrom ourside sources with the amurance of a job when they grad-uated. These students are at least primary school educated,withsoae having secondary school education, thus the caliber offtture employees will grow to meet the future needs of the country.

Instructors

DGR - There are now a total of eight mechanical instructorsassigned to the training center. Of the 4 petrol

instructors, 2 are Omani and 2 are expatriate and of the 4diesel instructors I is Omani and 3 are expatriates.In addition to the mechanical instructors, the operatorsassigned to the Road Production Training Unit have been des-ignated operator/instructors, I shovel instructor, 2 heavytruck driver instructors, 3 motor grader instructors and 1roller operator instructor.

- 36 -

ANNEX 3

1984 contd.

DAI - The training segment of the consultants team has beencompleted so that there is nav available the followingtraining personnel. I Senior Traning Specialist,1 Senior Training Instructor (Roads) and 1 EquipmentOperator Instructor.

During the period January through December the following courseswere given, also indicated are the length of each course and thenumber of students involved.

Apprentice Diesel Mechanics 1 year 19 studentsApprentice Petrol Mechanics I year 20 studentsUpgrade 2nd Mechanics Diesel 2 months 12 studentsUpgrade 2nd Mechanics Petrol 2 months 12 students

Upgrade lst Mechanics Diesel 2 months 6 studentsUpgrade 1st Mechanics Petrol 2 months 6 studentsUpgrade Vehicle & Plant Electricians 2 months 2 studentsMotor Grader Oneratois 3 weeks 49 studentsShovel Operators 3 weeks 34 studentsHeavy frck Drivers I week 30 stuLdentsDozer Operators 2 weeks 14 studentsCost Accounting Training 2 weeks 8 studentsRoad Maintenance Tfraining 3 veeks 49 studentsWork Center Supervisors Seminar 1 week 18 studentsRoller Operators 1 week 12 students

TOTAL 291 Students

1985

With the completion of the consultants team and the assigmentof personnel to the vrarious road maintenance and allied tradesteams, the scope of training for this year has trebled over 1984.

For the third series of Apprentice Mechanics Courses an additional6 Diesel and 5 petrol trainees are being recruited, with the sameeducational standards as the group recruited in 1984. Thesecourses are scheduled to commence the beginning of January.

- 37 -

ANNEX 3

1985 contd.

It has been proposed that the following cpurses be presentedduring the period January through December this year.

Apprentice Diesel Mechanics 1 year . 24 studentsApprentice Petrol Mechanics 1 year 24 studentsUpgrade 2nd Mechanics Diesel 2 months 17 studentsUpgrade 2nd Mecxhanics Petrol 2 months 21 students-Upgrade 1st Mechanics Diesel 2 months 6 studentsUpgrade 1st Mechnics Petrol 2 months 5 studentsUpgrade Plant & Vehicle Electricians 2 months 2 studentsArea Supervisor Training 1 week 8 studentsRoad Fozuan Tfaining 2 weeks 49 studntsMotor Grader Operator 2 weeks 65 studentisShovel Operator 2 weeks 32 studentsHeavy Truck Driver 1 week 39 studentsWork Center Supervisos 1 week 20 studentsSurface T$eatment Team 2 veeks 12 atudentsAsphalt Patching Team 2 weeks 37 studentsGuard Rail & Reflector Team I week 23 studentsSign & Curb Tgam 1 week 16 studentsCulvert Cleaning Team 1 week 33 studentsBetterment Track Roads Team 1 week 96 studentsNew Road Construction Team I week 31 studentsSurveing Chainmen Training 1 week 4 studentsLaboratory Technician Training 1 week 4 studentsPrimary Arabic Language 1 year 6 studentsPrimary English Language 1 year 31 studentsRoad Mhrking Team 3 months S studentsCost Accounting I month 9 students

TOTAL 616 Students

- 38 -

ANNEX 3

TRINING TARG1S

The overall training program has a threefold purpose, first toupgrade the skills of the present employees, secondly to providea source of new and replacement personnel able to contribute tothe overall task of the Directorate and thirdly, to eventuallyreplace expatriate employees as Omani employee skills reach therequired levels.

For the purpose of setting trainina; programs and targets we havebroken down the DG employees into two main groups, ie. WorkCenters and Road Maintenance Teams and the Workshops.

Labor Work Centers and Maintenance Teams

Northern Region

Rxisting EulOyes" Target ShortaeM

674 1169 495

Southern Region

70 2 207

Labor Workshops

Northern Region

244 360 116

Southern Region

52 52 -

Totals

1040 18s8 818

Traiing Targets

1985 1986 1987 1988

616 310 390 450 Students

- 39 -

ANNEX 3

IN-HOUSE TRAINING"I

1984 1985 1986 1987 1988i858

Total nber of 1678DGR personnel

\ I / t ~ ~~~~~~~~ I

\ 1497/ -

1316

10400X4

291 Numbr of DG personnelto be trained

1984 1985 1986 1987 1988

Note: In calculating the total nmber of personnoelto be trained over this period of time ve haveadded W% to compensate for wastage, ie. deaths,resignations, transfers, pensioned, seperations,etc.

Also takn into account was the eventual replace-ment of the epatriate employees, located mainlyin the workshops.

- 40 -.

ANNEX 3

Trainins Within the Sultanate - "In Country Training"

This type of training is carried out at various institutionswithin Oman such as: The Institute of Public Administration,The Vocational Training Institutes, The British Council,and Private Establishments.

It covers training in the following fields: Administration,English Language, T2chnical Skills, Typing, etc.

The following table shows the number of employees trainedand proposed to be trained during the period 1983 through1988.

Year 1983 1984 1985 1986 1987 1988

No, of 94404400Students

Training Abroad

This type of training is carried out abroad at institutions,universities, agencies, etc and covers, but is not limitedto the following fields:

AcademicEquipment ManagementWorkshop ManagementComputer Studies

The following table shows the number of employees trainedand proposed to be trained during the period 1983 through1988.

Year 1983 1984 1985 1986 1987 1988

Studets 8 4 11 21 14 14

Students~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF A

THIRD HIGHWAY-MAINTENANCE PROJECT

Sumnary of Total Labor Reauirements by Activity1986-1990

Track Track New ProductionActivlties Road Road Track Asphalt Road Light Training

Maintenanc& BEetteMnt Construction Maintenance Markina Maintenance Unit Total

Supervisor 9 3 3 1 -- 5 1 22Assistant Supervisor a -- -- -- -- -- -- aForeman 21 3 3 3 1 2 1 34Superintendent 21 3 3 3 1 2 1 34Clerk 19 3 3 2 1 3 1 32Store Keeper -- I -- 2 1 -- -- 4Normal Labor 19 16 6 64 4 46 3 158Surveying Labor -- 8 -- -- 3 -- -- 11Grader Operator 66 6 3 -- -- -- 3 78Shovel Operator 33 5 3 --- -- 2 2 45Dozer Operator 1 4 9 -- -- -- -- 14Roller Operator -- 7 3 3 -- -- 1 14Heavy Truck Driver 47 35 12 14 2 9 5 124Light Truck Driver 61 24 12 24 4 5 1 131Diesel Mechanic 11 2 3 2 -- -- -- 181Petrol Mechanic 9 3 -- 1 1 -- -- 14Electrician 12 3 3 1 -- -- 19Assistant Mechanic 16 4 3 3 1 -- 1 28Greaser 20 4 3 1 -- -- -- 28Assistant Operator 83 18 18 7 2 -- 5 133Painter -- -- -- -- -- 2 -- 2Carpenter -- -- -- -- -- 2 -- 2Mason __ __ __ __ __ 4 __ 4Assistant Mason -- -- -- _ 3 -- 3Cook 20 4 3 -- -- 3 1 31Assistant Cook 20 4 3 3 -- 1 -- 31Office Boy 19 1 -- -- -- -- 20Guard 61 12 9 9 -- -- 3 94Drilling Operator -- -- 28 2 -- 1 -- 31Excavator Operator -- I1

576 173 133 145 21 91 29 1,168

=== -- = == >~~~~~~~~~~~~

- 42 -

ANNEX 3

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF A

THIRD HIGHWAY MAINTENANCE PROJECT

Labor Shortage In Work Centers and Team ActivitiesNorthern Reaian

Under Proposed Total TotalProfesso1n Existing Recruitment Recruitment by end of Required Shortage

NLmzer durina lI84 durin 1J9Si 1985 Number Number

Supervisor 10 -- 4 14 22 8Assistant Supervisor 8 -- -- a a --

Foreman 31 3 -- 34 33+1 --

Superintendent 21 7 6 34 33+1 --

Clerk 23 1 7 31 31+1 laStore Keeper 1 -- 2 3 3+1 1INormal Labor 99 14 -- 113 135+23 22+23-Surveying Labor 4 3 4 11 11 --Grader Operator 69 -- -- 69 78 9Shovel Operator 33 1 -- 34 4S 12Dozer Operator 14 -- -- 14 14 --Roller Operator 2 3 3 8 13+1' 5+1'Tiipper Operator 69 11 20. 100 121+3* 21+.3Light Truck Operator 54 7 23 84 124+7' 38+7*Diesel Mechanic 12 1 3 16 17+1* 1+1'Petrol Mechanic 7 -- S 12 14 2Electrician -- 1 9 10 19 9Assistant Mechanic 4 3 10 17 27+1* 10+1*Greaser 13 2 5 20 28 8Assistant Operator 65 iS 20 100 131+2' 31+2*Painter 2 -- -- 2 2 --Carpenter 2 -- -- 2 2 --

Mason 6 -- -- -- 4 --Assistant Mason 1 -- -- 7 3 -_

Cook 34 2 -- 36 31 --

Assistant Cook 21 2 3 26 30+1- --Office Boy 3 1 6 10 20 10Guard 65 1 14 80 91+31 11+3*Orilling Operator 1 10 11 22 30+1* 8+1*Excavator Operator - _ 1 - I --

TOTAL 674 8B 156 918 1.169 207+44

Professions required in 1988 for the asphalt team at Adam.Shortage to be recruited in 1986 207Shortage to be recruited in 1988 44

- 43 -

ANNEX 3

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF A

THIRD HIGHWAY MAINTENANCE PROJECT

Labor Shortage In Work Centers and Tean ActivitiesSouthern Region

Under Proposed Total TotalProfession Existing Recruitment Recruitment by end of Required Shortage

Number durin 1984 during l985 19aL Number Number

Civil Engineer -- -- -- 2 2General Supervisor I -- -- l 1 --Supervisor 3 -- -- 3 3 --Assistant Supervisor 6 -- -- 6 6 --Forewan -- -- -- -- 8 8Superintendent -- -- -- -- 8 8Surveyor 4 -- -- 4 4 --Clerk -- -- -- -- 8 8Store Keeper -- -- -- -- 1 1hormal Labor -- -- -- -- 31 31Surveying Labor -- -- -- -- 6 6Grader Operator)Shovel Operator)Dozer Operator ) 22 7 -- 29 29 --Roller Operator)Heavy Truck Driver 1S 7 3 25 37 12Light Truck Driver 5 -- 10 1S 27 12Diesel Mechanic 3 -- -- 3 3 --Petrol Mechanic 3 -- -- 3 3 --

Electrician 2 -- -- 2 3 1Assistant Mechanic 3 -- -- 3 3 --Greaser 2 -- -- 2 7 SAssistant Operator -- -- 10 10 28 18Painter 1 -- -- 1 1 --

Carpenter -- -- 1 1 1 --

Mason -- -- I 1 1 --

Assistant Mason -- -- 1 1 1 --Cook -- -- 1 1 7 6Assistant Cook -- -- 1 7 6Office Boy -- -- 1 1 7 6Guard -- -- 4 4 21 17Drilling Operator 4 _ 4 _11 9

TOTAL 70 14 37 121 277 1563= == === === =

- 44 -

ANNEX 3

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF A

THIRD HIGHWAY MAINTENANCE PROJECT

Technical Personnel Shortage in the DG Departments

TotalExisting Required Shortage

Profession Number Number Number

Area Engineer 3 5 2Civil Engineer (Betterment &New Track Construction) -- 1 1

Civil Engineer (AsphaltRoads Maintenance) -- 1 1

Traffic Engineer -- 1 1Katerials Engineer 1 2 1Surveyor Engineer 1 1 --Quantity Surveyor 2 2 --Site Surveyor 2 2 --Draftsman 3 3 --

Materials Supervisor -- 1 1Senior Lab Technician -- 3 3Lab Technician -- 11 11Traffic Clerk 1 4 3Traffic Supervisor -- 3 3Assistant Traffic Supervisor -- 3 3Traffic Enumerator 6 30 24Driver (Traffic) 2 9 7Cook (Traffic) 2 6 4Cost Accountant 3 3 --Librarian 1 1 --Driver-operator (Lab) -- 2 2Laborer (Lab) 1 12 11Typist (Lab) 2 2Storekeeper (Lab) -- 2 2

- 45 -

ANNEX 4

S~~~~~~~~~ I

*~ ~ ~~~~i Il II IIj iii ill

iii n; uiII' II' I' i~n II 1- i

II gLB

OMANAPPRAISAL OF A THIRD HIGH WAY MAINTENANCE PROJECT

Organizalton Chad for tMe Directorate of Roads(Southern Region)

I 1~~~~~~~Dreckx Gwd d l

DG dUm.rwoton l

Tack Ad

5 Scti A. Section | C| & | |t A |l l m Seda

W ~~~~~~~~~~~r E.r w

Q~~~Wim YdftcI SCwfw Nn

F.k ~ ~ ~

-ft*d Cars * ,

wQora Bar*-2)105

- 47 -

ANNEX 6Page 1 of 7

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

Technical and Economic Criteria forEvaluating Highway Prolects

A. Context of Pro;ect Evaluation

1. Proposed projects of whatever size and location will be studied inrelation to the Sultanate's economic and social needs and these studies willbe applied to investment planning over the entire highway program. In addi-tion to conventional economic justification on the grounds of transport costsavings and road maintenance or reconstruction savings, special attentionvill be given to:

(a) the contribution traffic makes to direct foreign exchangeearnings through, for example, transit trade;

(b) the importance of the traffic to the export of commodities;

(c) transport requirements of specific economic developments;

(d) energy saving; and

Ie) highway safety.

Whilst some of these criteria may not always be readily quantifiable, theyshould be clearly described and related to the proposed investment.

2. Evaluation reports should also describe how the project in questionis related to both the physical and institutional objectives of the HighwayMaster Plan. This vould include, as necessary, inter-modal considerationsand reviews of associated investment schedules.

B. General Criteria

Indicators. As far as possible projects' analyses shouldconcentrate on identifying "lowest total transport cost" (construction +maintenance + operation) solutions for which economic rates of return, firstyear returns and net present values may be calculated. Where alternativesolutions are tested incremental cost:benefit analysis should be undertakenusing the appropriate indicator.

- 48 -

ANNEX 6Page 2 of 7

Test Rates. Test rates should be established annually with theassistance of the ministries responsible for economic planning. Prerently,12Z is used as the test rate but where it is shown that important elements,although identified, have not been quantified either a relaxation of thetest rate may be appropriate or multi-criteria weighting may be applied. Inthese exceptional cases an explanation should be given.

Proiect Horizons. Generally major highway projects should use20-year horizons although 10 years is frequently acceptable. Small projects,especially those where significant changes may take place, should be limitedto a 10-year horizon. Primarily the decision on time period used should bebased on an evaluation of type of works, risk and probability.

C. Types of Evaluation Study

3. Depending on the nature of the proposed project or sub-project thestudy methodology will be different. Broadly four types are identified:

(a) large complex investment projects or projects which may haveimportant and far reaching network effects will be subjected tomajor consultancy studies based on unique terms of referenceacceptable to potential financing agencies;

(b) important but relatively straightforward projects, such asrehabilitation or strengthening of parts of the highway network,will be subject to feasibility studies undertaken or supervisedby the Ministry of Communications staff according to themethodology and criteria described in the next section;

(c) relatively small and simple projects which comprise the bulk ofthe investment and improvement program will continue, for thetime being to be evaluated according to present proceduresincluding standard thresholds and traffic warrants; it isexpected, however, that advances in project analysis will beincorporated as appropriate.

(d) during the course of investment program and sub-project evalu-ation an analysis will be carried out of the economic andtechnical effect of investment works on the cost and resourceneeds for maintenance. This information will provide input forhighway maintenance planning.

D. Structure of Feasibility Studies

4. It is to be particularly emphasized that the feasibility studiesshould be the means of identifying suitable projects and specifying optimumsolutions for subsequent detailed design and implementation: they should notmerely be a medium for rubber stamping already taken technical decisions.

- 49 -

ANNEX 6Page 3 of 7

5. The overall layout of the reports on 3(a) and 3(b) should be asfollows:

(a) Introduction and Socio-Economic Context(b) Engineering, Specifications, Standards and Costs(c) Traffic Surveys, Growth Rates and Forecasts(d) Vehicle Operating Costs and Benefits(e) Description and Display of Costs and Benefits(f) Calculation of results, Sensitivity Tests and Recommendation.

Appendices

(a) General location map (e.g. 1:500,000 map of Oman)(b) Plan of project on 1:50,C00 scale(c) Cross sections of proposed road(d) Deflection slirvey results(e) Axle load survey results(f) Speed Survey/journey time survey results(g) Detailed critical path diagram of recommended solution

6. In greater detail the sections should include but not be limited to:

A. Introduction and Economic Context

- brief sumnmary of the project including details of any associatedinvestmencs and administrative arrangements;

- description of project location, terrain and climate;

- popuLation and settlements served by the road;

- economic activity of the area through which the road passes(i.e. its in ediate area of influence) and a quantifiedassessment of its importance to the national economy;

- the link function of the road section (e.g. part of majornorth-south link between Muscat and Salalah carrying domestictraffic such as (x) and transit traffic) and the importance,quantified as far as possible, to the country; and

- the relationship of the proposed project to the overall highwayplan and strategy.

B. Engineering Specifications, Standards and Costs

(a) These should be given sepaFately for homogeneous sections in thefollowing format and s.iould alse he given for all alternativesolutions including a special evaluation of the system and costof the maintenance alternative.

- 50 -

ANNEX 6Page 4 of 7

Section: From To (km to km)

Present Proposed

Formation Width

Pavement Width

Shoulder Width

Shoulder Type

Terrain Type

Average Gradient

Side Drain Depth

Side Drain Widths

Present ProposedType Thickness TTpe Thickness

Wearing Course (i)(ii)

Base Course (i){ii)(iii)

Sub-Base (i)(ii)

Condition Category

Length

Details of bridges and major structures should also be given and any specialproblems should be described.

(b) The analysis of pavement deterioration and maintenance andvehicle operating costs should follow the procedures describedin the Highway Master Plan and 1986-90 Highway MaintenancePlan. It is proposed to investigate the use eventually of moresophisticated methodologies such as the World Bank's HDM modelor the Transport and Road Research Laboratory's RTIM II model.In the same section information of road deterioration and main-tenance should also be discussed;

- 51 -

ANNEX 6Page 5 of 7

(c) Construction costs should be provided section by section and intotal (also major structures separately where appropriate)including and excluding tax and calculating the estimatedforeign cost component. This should be done for all alter-native solutions.

(d) An outline critical path diagram should be provided for eachalternative solution showing the activities and their durationsleading to contract award(s) and mobilization; and also statingthe contract period.

(e) A semi-annual cash flow for construction payments against thebudget, drawn up from past experience on similar project andfrom other data.

C. Traffic Surveys, Growth Rates and Forecasts

(a) Results of up-to-date classified vehicle counts differentiatingbetween Omani and non-Omani vehicles should be given and alsothe results of origin and destination surveys where alternativeroutes are being examined. Based on these, AADT traffic shouldbe estimated.

(b) Results of up-to-date axle load surveys differentiating betweendirections of travel.

(c) Growth rates for volumes and weight of traffic should be esti-mated by category of traffic and these should be justifiedaccording to economic and social parameters.

(d) Forecasts of traffic for the analysis period should be given bynumber of vehicle type (differentiating between Omani andnon-Omani vehicles) and by number of standard axles p.a.; andwhen necessary adjustments should be made for the effect ofspecial events on traffic generated traffic should be identi-fied separately.

(e) A description of major conmnodities carried should be given.

D. Vehicle Operating Costs and benefits

(a) The base vehicle operating costs free of tax calculated inDecember 1983 should be used suitably updated as free of taxunit prices change (but also see HDM III and RTIM II calcu-lations of vehicle operating costs).

(b) Vehicle speeds/journey time tables should be included.

- 52 -

ANNEX 6Page 6 of 7

(c) Continue using the existing road condition category measure-ments as described in the Highway Master Plan and 1986-90Highway Maintenance Plan.

(d) Vehicle operating cost savings derived by generated trafficshould be multiplied by a factor of 0.5 and those derived bynon-Omani vehicles should be excluded from the analysis.

(e) A special section should be included describing the impact ofthe project on fuel consumption and foreign exchange earnings.

(f) Road maintenance savings should be calculated and compared withvehicle operating cost savings.

(g) Where considered appropriate additional savings such as value oftime and accident prevention may be included but theseinclusions should be explained and justified.

(h) Any other benefits (agricultural exports, greater port effi-ciency etc.) should be described but care taken to avoid doublecounting of the generated traffic.

E. Description and Display of Costs and Benefits

(a) The discount rate or cut-off rate should be specified (12% atpresent).

(b) Tables clearly showing discounted and undiscounted costs andbenefits should be given in respect of all alternative solu-tions examined: an example is given in the Annex. Maintenancebenefits should also be stated as a percentage of benefitsexcluding value of time savings.

(c) In cases where value of time (VOT) savings are included (apartfrom salaried vehicle crew cost savings) the benefits should begiven with and without VOT benefits.

F. Calculation of Results. Sensitivity Tests and Recommendations

(a) Economic Rates of Return (ERR), Net Present Value (NPV), FirstYear Rates of Return (FYR) and Benefit Cost Ratios (BCR) shouldbe calculated for each alternative solution investigated and setout as follows:

Solution A Solution B

NPV/CostBCRFYRERR

- 53 -

ANNEX 6Page 7 of 7

(b) A description should be given of the major risks (if any) facingthe project - for example, increases in construction cost orperiod, declines in traffic growth estimates or failure toachieve associated projects such as port expansion. Once suchrisks are defined the probability of their reaching certainvalues should be assessed and, if the probability is consideredsufficiently high, the appropriate values should be applied tothe calculations to assess the impact on them. For example,

Solution A Solution B

Increase in construction cost dueto encountering hard rock + x ERR = ERR =

Decrease in benefits due to over-estimation of traffic growthrates - YERR= ERR =

Increase in construction costs- xZ and decrease in benefits - y2 ERR = ERR =

(c) Following the calculation of results, examination of risk andtests for sensitivity a recommendation as to the preferredsolution should be made. Apart from a necessity to meet mini-,um economic criteria (NPV positive and BCR > 1.0 when dis-counted at 12X, ERR and FYR > 12X) this recommendation may takeinto account a number of other factors and these should beexplained in justification of the decision. For example, asolution with a low rate of return but virtually risklesssolution may be preferred to a high rate of return high risksolution, or a solution may be given added importance becaluse ofits links with economic activity in other sectors or because offoreign exchange earning potential.

(d) Once the final recommendation has been made a detailed criti-cal path diagram for implementation should be drawn and includedin the feasibility study annexes.

SULTANATE OF OMAN

STAFF APPRAISAL REPORT UF A

THIRD HIGHUAY MAINTENANCE PROJECT

DG Recurrent Expenditures- I/It81 .a-i----r-1982 1 1982 1983 -3 1984 S 1985

ItLem Particulars SactioneO Spent Sanctioned Spunt Sanctioned Spent Sanctioned Spent Estirate

20100 Salaries & Allowances

20101 Salaries 1462394 1252188 1555009 1470747 1800045 1544049 1955062 1322502 2044404

20102 Allwmces 655706 559447 669405 635005 806339 709330 856906 602780 864480

20103 Gratuity& Cpmensation 12381 10275 13500 16464 13500 5828 10500 81 15000

20104 Daily Labour Charges 89000 81887 70000 60677 100000

20105 Overtime 200000 199739 267720 264726 290720 290489 282000 224272 332000

20106 Rents/Houses 37200 2286 46560 46476 76516 77436 80342

20107 Tickets 22356 22388 26491 35787 41152 40625 46914 43381 54080

20108 Travel Ebqse 1664 1300 2164 1592 2068 1424 4080

Total 2330481 2021650 2580989 2446888 3089480 2720276 3299966 2688553 3494391

20300 RequirLWts & Operatiomalmaterials

20303 Spare Parts & Vehicle Fuel 270000 274742 305650 308181 339430 334117 339430 236177 339430

20305 Office Requirements andStationeries 9000 9003 18200 18190 18200 16777 18200 15013 23000 Un

* 20306 Req.nrirts for Roads .

aid Bil ding 9spplies 29325 28079 32000 31932 24000 20994 24000 17769 54000

20308 Spare Parts & Engine FIel 421378 415365 652615 653704 700870 673798 700870 480587 700870

20309 Other Materials 72297 72327 82017 81463 98750 96955 116100 103655 116100

Tbtil 802100 800381 1090482 1093471 1181250 1142640 1198600 853201 1233400

20400 Maintenaice of:

20401 Buildings 7000 6890 8760 7760 13000 9587 13000 3292 20000

20402 Furnibjre & Equipjmt 6000 2862 1500 1473 1500 1331 2128 1568 2128

20403 Transport & Engines 3500 1150 5900 5710 6900 6912 7775 7312 8164

20404 Others 10500 9229 8120 8119 8000 7454 8000 6997 8127

lbtal 27000 20130 23520 23062 29400 20234 30275 19169 38419

20500 Cost of Services P

20501 Rents 46740 28020 11680 11680 14400 12375 18400 13380 19320 t 3

20503 Travel in mission 12000 12337 23045 23016 35000 33090 27700 18827 651000 4

20504 hhve rtisit & Pra. tion 1750 790 448 448 1000 342 8820 8035 9260 0

2 Tc(stntgya Training 6 15QO 5404 9285 9282 12000 3492 12000 6317 12600 tTa Abroad

20506 Odter SIrvices 51000 50184 57454 57291 65900 64455 62908 31269 7000D

.k . . ., lotal 140346 119042 101912 101716 128300 113745 129828 77828 176180* - .0ti 17W

I .em Particula'rs 1981 1982 1983 1984 1985Itoii Particulars.

Sanctioned Spent Sanctioned Spent Sanctioned Spent Sanctioned Spent Estimate

20600 Scholarships & Participation

20605 Cost for National DayChlebrations 1500 1466 1500 1500 1100 1002 1100 1600

20606 Other Shares - 414 390 400 340 400 83

Total 1500 1466 1914 1890 1500 1342 1500 83 1600

20900 Teleca=. Water & Electricity

20901 Post, Telegraphs,Telexes & Telephones 20000 13289 21000 20554 25000 14252 20000 9309 21000

20902 Water, Electricity, Others 20000 23765 30000 30009 30000 29370 30000 30317 31500

Total 40000 37054 51000 50563 55100 43621 50000 39626 52500

Total Cirrent Expenses 3341327 2999724 3849817 3717594 4484930 4046868 4710169 3322377 4996490

30100 Furniture & Equ,itMnt

30101 Office Fbrniture & Equip. 12000 11988 14500 14496 25100 24980 25000 25078 26250

30102 House Fumiture & Equip. 24959 25158 15243 16861 19000 17380 19000 15117 19950

Total 36959 37146 29743 31356 44000 42360 44000 40190 46200

30200 Vehicles & Means of Transport 84000 84000 100000 99570 49500 49500 165700 165700 238400 0

30300 Engines & Equipments 330974 48548 263000 243262 309097 308607 131500 83391 138000

TOTAL EXPLPNDITURE 467933 185694 392743 374189 402597 400467 341200 289286 422600

GRAND TOTAL 3809260 3185419 4242560 4091783 4887527 4447334 5051329 3611663 5480074

I/ Omani Rlals; R0 = US$2.89

Source: DON

0LlDR I I I I 111X olw~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1

- 56 -

ANNEX 8

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

Summary of Work Centers Requirements for the1986-1990 Program

Year ofArea Work Center Construction

Capital Azaiba L986Quriyat (Programmed for the

current 1981-85 Plan)

Batinah (A) New Masna'a 1988Seeh Al Mehbeel 1988

Batinah (B) Saham 1988Sohar 1988

Interior (A) Birkat Al Mawz Phase I (Programmed forthe current 1981-85 Plan)Phase II 1986

Bahla 1986Adam 1986Samail 1986

Dhahira Ibri Phase I (Programmed forthe current 1981-85 Plan)Phase II 1981S

Khadal 1986

Sharqiya (A) Ibra 1988A'Taiyeen 1988Samad A'Shan 1988

Sharquiya (B) Al Kamil 1987Sur 1987

Interior (B) Haima 1986Al Hig 1987Ras Madraka 1987

Masirah Island Masirah Island 1987

South region Salalah 1987Thamrait 1987Tawi Atair 1988Shelim 1987

- 57 - ANNEX 9

S&NTAA4TE OF GOM

STAFF APPRAISAL *EPORT OF

A THIRD letal S9INTERICE PROJECT

Thre-tea Proet md Fin-Toor Proorw Cost Estimte 1/1US$ mllIron)

1986-19s 11990ICT 1986 1907 19e8 Three-tear Totals 1I 1g90 Fiver-ear Totals

Item LOC. FX. LOC. Ft. LOC. FX. LOC. Fl. TOTAL LOC. FX. LIC. Fl. LOC. FX. TOTAL

CPITAL COSTS

1. Periodic Nalatenaco A Minorldirovrmnts

(a) Asphalt overlays 3.B8 9.06 4.60 10.72 4.37 10.18 12.85 29.96 42.81 2.85 6.65 1.10 2.58 15.3O 39.19 55.99lb) Bituen surface Treaatmet 3.82 5.74 3.82 5.74 3.82 5.74 11.46 17.22 28.68 3.82 5.74 3.82 5.74 19.10 28.70 47.80IC) 6rovel hepleanishmt 0.45 0.45 0.45 0.45 0.45 0.45 1.35 1.35 2.70 0.45 0.45 0.45 0.45 2.25 2.25 4.50

Z. Equiwent L Soare Parts forg

ta) mlpea MaIntenance 0.32 6.08 0.04 0.72 0.14 2.14 0.50 9.54 10.04 0.05 0.56 0.12 2.26 0.67 12.66 13.33(b) Iorkshops - - 0.01 0.22 0.01 0.21 0.02 0.43 0.45 0.01 0.14 - - 0.03 0.57 0.60(C) Pas_st Data Collection 0.0 0.28 - - - - 0.01 0.28 0.29 - - - - 0.01 0.28 0.29

3. Construction

(a) MorktsPos 0.37 1.48 - - 0.37 1.48 0.74 2.96 3.70 - - - - 0.74 2.96 3.70(b1 hMghay Naist. Centers 3.45 3.45 2.08 2.08 1.17 1.17 6.70 6.70 13.40 - - 6 - S.70 6.70 13.40Ic) Training Centar Extension 0.53 0.52 - - - - 0.53 0.52 1.05 - - - * 0.53 0.52 1.05

4. lecnnical Assistance

La) Consultants & lachnicanssfor tce.. .pt.. trg.amd planning 0.47 '-53 0.47 1.53 0.47 1.53 1.4t 4.59 6.00 _ - - - 1.41 4.59 6.CO

S:ubtotal 13.30 28.59 11.47 21.46 10.80 23.50 35.57 73.55 109.12 1.18 13.84 5.49 11.03 48.24 98.42 146.66

S. Contingeciest

LO) Physical 1.33 2.b6 1.15 2.15 1.08 2.35 3.56 7.3b 10.92 0.72 1.38 C.5S 1.10 4.83 9.84 14.67(n) Cust Escalation y 1.13 I.BO 1.93 3.32 2.95 .v 6.01 10.97 16.98 2.85 5.17 2.78 5.34 11.64 21.48 33.12

TuIML CAPITAL COS15 15.7c 3J.2: 14.5: 5 ... .4. . .*.i4 51.88 131.02 10.75 20.39 8.82 17.47 64.71 129.74 194.45

fLtCiRNthE COSTS y

6. Routine Maintenance 9.bb 4.83 9.t6 4.83 9.66 4.83 25.98 14.49 43.41 9.66 4.83 9.66 4.83 48.30 24.15 72.45

7. Cont inenles

(a) Physical 0.97 0.48 0.97 0.48 0.97 0.40 2.91 1.44 4.35 0.97 0.48 0.97 0.48 4.85 2.40 7.25(D) Cost Escalation y 0.85 0.32 1.70 0.80 2.76 1.27 5.31 2.39 1.70 3.83 1.80 4.39 2.34 1.03 6.53 20.56

TutAL XtLutgKJ17 COSTS 11.48 5.b3 12.33 6.11 13.39 6.58 37.20 18.3? 55.52 14.46 7.11 15.52 7.65 67.18 33.06 100.26

IlTAL COST0 27.Z4 38.8b 26.88 33.04 28.22 38.28 82.34 110.20 192.54 25.21 27.50 24.34 25.12 131.89 162.82 294.71

.1/ Juane 1915 b.se date.

2/ Price escalation for local costs. estimatel at 7? for 19S and 84 for 1986-90; foreign escalation estirmatec at 51 for 1985. J.5s tor1986. anm E for 1987-19U. for Item 1. i 3.

2 Total recurrnt k t of DK; direct mintennce costs of tiCth will be Identif led through nM Cost accoWting systel.

Source: HIhssion Estimates. August 1985.

- 58 -

ANNEX 10Page 1 of 2

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF A

THIRD HIGHWAY MAINTENANCE PROJECT

Estimated Disbursement Schedule(US$ m)

IBRD Fiscal Year Cumulative Disbursementand Quarter Ending at End of Quarter

1985/86March 31, 1986 0June 30, 1986 0.1

1986/87September 30, 1986 0.5December 31, 1986 2.5March 31, 1987 5.0June 30, 1987 7.5

1987/88September 30, 1987 9.5December 31, 1987 11.5March 31, 1988 13.5June 30, 1988 15.5

1988/89September 30, 1988 17.5December 31, 1988 19.5March 31, 1989 21.5June 30, 1989 23.5

1989/90September 30, 1989 25.0December 31, 1989 28.0March 31, 1990 29.0June 30, 1990 30.0

OMANAPPRAISAL OF A THIRD HIGtHAY MAINTENANCE PROJECT

Estnmated Disbumeffents

AMOUNT

100 _ ' -- -- -- : . ,. ~~~~~~~~~.. .....: .......... : ,:: .:;:: ::: ::. : ::: o

': I:3YEA PROJECT ''90 _ ~~~~~~~~~~~~~~~~. '. .................... ........... ,.,.......

90 / . . ....... -

70~~~~~~~~~~ - SAOD DRSEMENtdo J * PQOLE - FOR EI4ENA REGION HIGHWAYS, MARCH 1984

40

40

30 I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.. . ........ . ,. }. . -..,,;.

P ': t ; i li;) t: 5'; lt-,,,5.,,,,,l ............ .................... ........... '.'1';,,, .'t: ', ........ ,',- l:',',

10

o - I I I IA

FY86 FY87 FY88 FY89 FY90 FY91 FY92 FY93

1 ~~~2 3 4 5 6 7

YAS FROM 00BOARD APROVALJ

Woad Bot*-27102 N

-- -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - --- - --- --- - - - - - - - -

--- 1--i la ii --------------------------

.- -. ----- ----C §-_____{_] _____ --- - ]------- ------------------------ ------

--"---3-- ~ ~ ~ ~ ~ ~ ~ ~ ~ --------

I U - _ _____ _ _____ __ I-----I---I

a 1--- -j- -- - - - - - -- - -- -- - - - - ---- - - - -

- ::r : izi i§s gt it^ I0* g}i-11-I -- I --- ------- ---N-u ~ ~ ~ ~ ~ --------- 1--

- U ~ ~ ~ ~ ~ ------ ---- ------

…-- - - - - -- - - - - - - - - - - - -- -- -- - - -- - --I -i - -- --- - ---- -- - -- - -- - - -- -- - - - -- - - - -- --- ------- - -

I- I I I I II~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~b

- 61 -

ANNEX 12Page 1 of 2

SULTANATE OF OM.'

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

Accounting Systems and Auditing

A. General

1. The preparation of the Sultanate's highway Recurrent and CapitalDevelopment Budgets starts in June of each year for the following fiscalyear (January 1 to December 31). However, the Capital Development Budget isquite strictly based on the Five-Year Investment Plan and, whilst timing ofannual expenditures may be adjusted, the overall Five-Year Program expendi-ture will change very little.

2. The Procedure adopted for the review and approval of the two bud-gets is very similar and includes a large -iumber of checks. The originalRecurrent Budget (which finances the operations of the Directorates Generalof Roads (DG) routine and special maintenance activities, technical assist-ance and training) is prepared by the DG and is broken down into very finedetail. This original budget is then reviewed by a special committee in theDC before being passed on to the Ministry of Communications where it passesthrough another review committee to test its consistency with the Ministry'soverall program. However, at this stage, the personnel part of the budgetis subject to a special review by the Ministry of Diwan Affairs which is, ineffect, a Cabinet review. Following clearance by the Ministry of Communi-cations, the budget passes through the Ministry of Finance review processand is then presented to the Cabinet for final approval, and after thisnotice of formal approval is sent to the DG. At any of these stages thebudget may be modified.

3. The Capital Budget is based on the Five-Year Plan which is preparedby consultants in cooperation with the relevant departments and ministries.The Plan as a whole, and the annual Capital Budgets allocations based on it.pass through similar stages to the Recurrent Budget. However, at theMinistry of Communications' review stages the General Directorate of Techni-cal Affairs and Planning plays a significant part. Furthermore, the Planand annual allocations are closely examined and have to be agreed by thePlanning Council before Cabinet approval.

B. Budget Monitoring and Control

4. Expenditure on recurrent budget items up to OR 10,000 may be author-ized by the DG and his Director of Finance. The U-.der-Secretary of theMinistry of Communications may authorize expenditures up to OR 50,000 andthe Minister may approve expenditures up to OR 100,000. All expenditures

- 62 -

ANNEX 12Page 2 of 2

exceeding OR 100,000 have to be approved by the Government Tender Board.All Capital Budget items have to pass through the Tender Board for approval.

5. All expenditures have to be clearly checked against the originalbudget items and, except in special circumstances, the addition of new itemsor cost overruns have to be compensated for by savings in other items.

6. A monthly account of current budget expenditure is prepared by theDG Finance Department and there would be no difficulty in maintaining aseparate Project Account for the proposed project. It may, however, be moreappropriate if this account were to be maintained by the Project AccountsDepartment of the Ministry of Communications: this would probably be neces-sary if the project included items from the capital budget. The accountsare not complex and are clearly supported by the appropriate vouchers andother documentation and would be acceptable to the Bank.

C. Auditing Procedures

7. Government auditing procedures are strongly influenced by traditionand are aimed at achieving correct accounting for funds through discussionand consensus rather than formal auditing procedures leading to conventionalaudit reports.

8. The Ministry of Communications Finance Department carries out anannual check on the correctness of all accounts under its control. Thischeck is also backed up by Ministry of Finance examinations. Any queriesthat arise as a result of these checks are resolved directly between theMinistries of Communication and Finance and the relevant body such as DG,before the accounts are closed.

9. In addition, there is a separate independent body of FinancialInspectors with the status of a Directorate in the Cabinet. This bodycarries out spot checks of spending agency accounts and follow-up throughdiscussion and, if need be, more detailed investigations. No formal auditreport is made outside the Cabinet. However, it should be possible for anappropriate audit certificate to be prepared relating to the proposed pro-ject account provided the scope of the account is limited and clearlydefined. The Cabinet Financial Inspectors should be acceptable to the WorldBank as a professionally competent, independent audit body.

OMANAPPRAISAL OF A THIRD HIGHWAY MAINTENANCE PROJECT

Relatlonships between Year of Resudaclng and1984 Traffic Flows for Different Pawment Types

18____

Categor SuAbmos Boe co"n Weaitfl\\\ . ~~~~~~~~~~~~kueCouse w~~~~~~~~~~~~oursecm. cm cm cm

1 \\ 11 45 \\ \2 15 7 4

3 10 7 44 12 5 3

D OutYI beteN~ SuiOCe Tmlreatmen

O I I I . I I ~ ~ ~~~~~~~~~~~~~~~~I I

Note. Assuem 1%~ pa. traft ic gorsh optimum routine maxinteornce

~~~~~~~~ 12~~~~~~~~~~~~~~~~~~~

3~~~~~~~~~~~~~~~~~~~~~~~~~~~

01.000 2.000 3,000 4.000 5.000 6,000 7.000 8.000

1984 BASE YEAR TRAFfIC FLOW (vpd)Word Bank-27104

- 64 -

ANNEX 14

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

Proposed Table for Schedule L, Loan Agreement

Amount of theLoan Allocated Z of(Expressed in Expenditures

Category Dollar Equivalent) to Be Financed

1. Civil works

(a) for surface 9,600,000 60Ztreatment

(b) for workshops 3,400,000 80%

(c) for highway 7,600,000 50%maintenancework centers

(d) for training 600,000 50%center extension

2. (a) Equipment and 300,000 95Zmaterials forhighway safetyand data collection

(b) Equipment for 500,000 95%workshops

3. Consultants' services 5,000,000 75X

4. Unallocated 3,000X000

TOTAL ..30O000,000

- 65 -ANNEX 15Page 1 of 5

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

Terms of Reference and Action Plan for a Studyand Preparation of a Highway Safety Program

I. INTRODUCTION

1. The Government of the Sultanate of Oman is concerned about the levelof accidents on the highway networ-k and intends to carry out a study toinvestigate traffic safety and arising out of this study to implement asafety program, aimed at alleviating the number and severity of trafficaccidents. Directorates General of Roads with the participation of otherconcerned organizations will carry out the study, and will arrange for aprogram of safety measures to be implemented or further investigation as maybe necessary.

II. OBJECTIVES

2. The main objectives of the study are as follows:

'i) to establish a system for the regular collection of reliabledata describing accidents on Oman's highway network: these datawill include inter alia: (a) the exact location; (b) descriptionand classification of accident; (c) road and traffic conditionsof time of accident; and (d) weather conditions at the site andtime of accident;

(ii) to review the extent and standard of road markings and signs onOman's highway system together with related highway geometrycharacteristics and coefficients of friction of the pavement;

(iii) to prepare a national analysis and categorization of highwayaccidents; a computer program for doing this should be developed;

(iv) to make proposals for and implement remedial measures of identi-fied "black-spots" and arrange to monitor the effects of thesemeasures; monitoring should take place on a regular basis toensure no worsening in the situation takes place;

- 66 -

ANNEX 15Page 2 of 5

(v) to prepare reports relating, on a quantified basis, the highwaysafety situation in Oman with other countries and comparingrespective highway safety policies; and

(vi) to make recommendations for further actions in the field ofhighway safety in Oman.

The program for traffic safety is likely to include proposals for civilworks required to improve safety at specific priority places or sections, aprogram for road signs, a ruad marking program, and recommendations formedical and other accident emergency services, and suggestions for otherrelated aspects intended to improve traffic safety on the highway network.

III. SCOPE OF STUDY

3. The study is concerned initially with traffic safety on the mainhighway network, but should be extended eventually to the entire highwaynetwork. The study shall include the following phases:

Phase I

(i) collection of data on road accidents by exact location, time anddate, participants, severity, availability of medical help,weather conditions, detailed road characteristics: these datashould be processed into a form suitable as input for a selectedaccident analysis program;

(ii) quality of data should be carefully evaluated and where neces-sary improvements are identified these should be described andthe data collection system redesigned and implemented;

(iii) when data are lacking an inventory should be carried out of themain highway network giving, inter alia, precise details ofroad furniture, markings, surface type and safety barriers; and

(iv) the road safety situation in different regions of Oman shoulti beevaluated and compared, identifying "black-spots" and Oman'soverall road safety situation should be compared with that inother representative countries.

Phase II

(i) general review of road safety and analysis of accident charac-teristics with estimation of the incidence of different causes;

(ii) detaiLed review and analysis of important "black-spots";

- 67 _

ANNEX 15Page 3 of 5

(iii) definition of proposed remedial measures at a national levelincluding matters such as road signs and markings, speed limits,vehicle testing and, especially, education;

(iv) definition of specific remedial measures to be introduced atindividual "black-spots"; and

(v) development of monitoring systems to evaluate the effects ofremedial measures of national and "black-spot" level.

Note: Where legal changes are necessary the Ministry of Communications andassociated agencies should take the initiative in stimulating the relevantlegislation.

Phase III - This should include the production of several importantreports which would be:

(i) Inventory of present highway safety situation including relevantroad inventory data;

(ii) Proposals for improved data collection and monitoring of highwaysafety measures;

(iii) Detailed "Black-spot" analysis and proposals;

(iv) Safety education;

(v) Proposals for national road signs and marking policy and trafficcontrol revisions;

(vi) Program costing and implementation schedule; and

(vii) A summary report and proposals for future work.

Monitoring of highway safety and the results of physical, control and educa-tional policies will continue.

4. The benefits of the traffic safety proposals which the Ministry ofCommunications may recommend, will be qualitatively described and theirdistribution amongst different types of road users will be identified.However, no formal benefit-cost analysis is required for determining thedetails of the treatments proposed to improve traffic safety.

5. The Road Maintenance Directorate of the Ministry of Communicationswill coordinate the task force responsible for carrying out this study.

- 68 -

ANNEX 15Page 4 of 5

IV. TIME SCHEDULE AND REPORTS

6. The study is expected to be complete within 24 months. The fol-lowing reports will be prepared in English of which 3 copies to the WorldBank;

(a) within 8 months of the starting date an Accident Data Reportcovering the analysis of accident data and the identification of"black-spots" on Oman highways, an attempt should also be madeto provide estimates of fatalities and injuries per 100,000veh-km;

(b) within 12 months of the starting date an Interim Report onAccident Causes, "black-spots", Road Marking, Signs and SafetyDevices, and Emergency Services for the main road network, pro-posing (i) a list of priority "black-spots" for improvement withgeneral details of the treatment proposed, and preliminary esti-mated cost, (ii) specific medical and other accident emergencyservices; and (iii) the type and extent of programs for roadmarking and road signs and safety devices;

(c) within 12 months a Draft Report on Traffic Control Proceduresand Recommendations for Improvements related to traffic safetyon Oman highways;

(d) within 18 months of the starting date a Draft of the "Black-Spot"inal Design Report giving the design treatment at the selected"black-spots" on the road network together with estimated pricesand quantities. The report will also estimate the type andnumber of accidents that are expected at each site, and a programof work for proposed treatment of these sites, together withproposals for implementing a highway accident monitoring system;

(e) within 18 months of the starting date a Draft Final Road Markingand Road Signs Report giving recommendations for roads markings,road signing and guard-railing on Oman highways together withprograms of work for implementing these recommendations; and

(f) Final Reports on the following within two months of receivingthe comments of the Government and the Worid Bank and incorporat-ing all revisions instructed by DG.

(i) Inventory of existing situation(ii) Proposed data collection, analysis and monitoring

(iii) Black-spot analysis and remedies(iv) Safety Education

- 69 -

ANNEX 15Page 5 of 5

(v) Road signs and markings and traffic control revisions(vi) Costing and implementation schedule(vii) Summary and proposals for future work

V. STAFFING AND FACILITIES TO BEPROVIDED FOR THE STUDY

7. The Government will provide to DG or its consultants all informa-tion that is available to them and as may be reasonably required to carryout the study. Where cooperation is required from other Government Depart-ments and Agencies, the DG will provide liaison. The DG or its consultantswill provide all staff necessary to carry out the study (supplemented bysuch staff as necessary from other concerned ministries).

8. The Study Manager should be a Traffic Safety Expert. The consultantwill provide such personnel, equipment, vehicles and facilities as are nor-mally required under Omani regulations for the study to be properly executed.It is expected that about 24 man-months of professional services will berequired to carry out the study and to prepare the program for implementingtraffic safety measures.

9. The Traffic Safety Expert should have the following minimumqualifications:

- at Least 10 years experience in the study of the highway safety inboth developed and developing countries;

- experience of the design and practical application of data collec-tion and analysis procedures related to highway safety;

- practical experience of the design, implementation and monitoringof remedial measures; and

- detailed knowledge of the use of highway safety education.

SULTANATS OF OMAN

HIGHWAY SAFETY PROGRAM

ACTION PLAN

4 ~~~~~PHASE I -12 MONTHS PHASE 11 1 2IIONTHS (approx.)

Reviev Existing Data

6 mot

I lEval. A EvaluationI LReport Causes

New Method I 2 !I for Data I

Hinlstry °f I ^ Collection I oposals I Design >Miounistryonf J~ 2ow. I tno. and other mI t Program Monitoring ragencies Ia IReort Design Is

a n _ Inventory Traffic Conjrol 2 Zo 2 no.

I " ~~~6 o. I*1 1 1 <- _rRecoend Design I Reports r

Wi^ Inventory Road Sig$s , Changes Changas 2 I 2 no.

I" Xand Marking 3o i 3 I 1 3 o C

6uo I I I Program of k I I e . *I A|^ Renort _ _ __aaRnporO

16,1 I I ~~~~~ ~ ~ ~~~~~~~~~~~~~~~3.so. I2a.gIig.

I I I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 0I

I I 1 1 g ls a Pr

| n [ t ! t D 1 R O t t 5 b | i w 5 "a3 -. i n I ~~~~* .u ns-~~~96'P%' Uv D. M

IBRD (World Bank) a P I e - P . Pr 5 MSupervision and IA n 9* o4., n -| I I I 10gReview <;j ^ l 9| 0l W -a a,; g I..

f o ' I t °1 0 °c t 8 al~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~l.. 0. I ft 3t I 1en a n r

I I-.~~~~~~~~~~~~~~~~~~~~~~I

C 'a.' 0~

Date a - 0_

rn- ~~~~~~~~~~~~a, co

Ut a.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0

- 71 -Annex 16

SULTANATE OF GMAN

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

Highway Maintenance Equipment (1986-1988)

yTotal Estimated Estimated

Equipment Type New Replacement Unit Cost Unit Cost Cost(No.) (No.) (No.) US$ $'000

Motor Grader 20 21 41 70,000 2,870wheel Shovel Excav. 6 12 18 75,000 1,350Track Sbovel Excav. 1 1 2 90,000 180Dozer 180 hp 2 3 5 85,000 425Dozer 230 hp -- 5 5 220,000 1,100Tipper 20 27 47 45,000 2,115Water Tanker (2,000 gal) -- 5 5 40,000 200Tandem Roller -- 1 1 35,000 35Pneumatic Roller -- 1 1 35,000 35Vibrating Roller 1 1 2 50,000 100mechanical Broom -- 1 1 35,000 35Air Compressor 175 cfm -- 1 1 20,000 20Fuel Tanker -- 4 4 50,000 200Prime Mover Towing Unit 1 1 2 60,000 120Low-bed Semi Trailer 1 1 2 30,000 60Loong Chassis Truck 2 1 3 10,000 30Saloon Car -- 19 19 7,500 142Pick-up 16 50 66 7,000 462Station Wagon 15 20 35 12,000 420Electric Welding Set -- 1 1 10,000 10

TOTALS 85 176 261 -- 9,909

y Delivered in Oman and including spare parts.

I

- 72 -ANNEX 17Page I of 4

SULTANATE OF OMAN

STAFF APPRAISAL REPORT OF

A THIRD HIGHWAY MAINTENANCE PROJECT

Roads Proposed for Surface TreatmentTraffic more than 300 VPd

W Road in Wilavat

Area Wilayah Track Location Length TraffficV.P.d.

Batinah Barka Main Road/Al Haradi 3.7 456

Main Road/Al Hafri 3.2 421

6.9

Masana'ah Main Road/Al Oqdah 4.0 378

Main Road/Al Qurayhat 3.0 365

Main Road/Al Belah Al Hodaib 4.0 612

Main Road/Al Shars (Part) 3.5 692

14.5

Al Suwayq Main Road/YJXabat Al Nawafil 4.0 488

Main Road/Khabat Al Ma'awel 4.0 425

Main Road/Al Afrad 8.6 832

Main Road/Batha Al Qurha 3.2 609

Main Rcad/Halet Al Good 2.8 444

22.6

Al Rustaq -

AlKhaburah Main Road/Al Rededah 1.5 445

Main Road/Qasabit Al Ziab 1.5 509

Main Road/Al Hajari towardsDuqal 10.0 983

Main Road/Sana'a Bani Gafir 10.0 418

Main Road/Ghaleel Al Sahel 5.0 344

Main Road/Ghaleel Al Masa'yeed 4.0 357

Main Road/oarih Al Gadidah 1.0 *367

Main Road/Al CWynat 5.0 461

Main Road/Al Abasah 4.0 425

Main Road/Sur Qtait 4.0 418

Main Road/Al Gialeel 3.0 637

-73 -

ANNEX 17Page 2 of 4

Main Road/Halit Al Hisn 2.0 323

Main Road/Al Rauran (Part) 1.5 571

Main Road/Khour Al Melh 2.0 312

main POaEmour Rosail 2.0 394

Main Road/Al Mantiqa Al Gadidah 1.0 448

Main Road/Al Khower 3.0 376

Main Road/Al A'wan 1.0 390

61.5

Batirnah Saham Main Road/Dobal Abdel Salan 2.8 550

"B" Main Road/Mataga'assah 2.7 489

Wadi Al Saramy Frno FalajAl Harthi to Al Filaij 10.0 1230

Main Road/Howail Sur Al Baloosh 2.2 660

Main Road/Al Gawaidah Al Gadidah 1.0 397

Main Road/Wadi Al Mahnom 2.0 347

Main Road/Al Pawail 3.0 510

Main Road/Majiz A1 Kobra 5.0 477

Main Road/Khashdah 1.0 328

Main PoadHalit Al Rawashid 2.0 315

Main Road/Un Al A' agarif 2.8 329

39.5

Sohar Main Road Wadi/Hibi (part) 16.0 560

Main Road/Al A'waynat 1.5. 460

Main Road/Al A'Fifa 3.0 500

Main ROad/Al Mala'ab/HaretAl Sheikh 5.0 522

Main Road/Majis 5.0 568

30.5

Liwa -

Shinas MaIn Poad/Wadi Faid (Part) 10.0 566

Main Road/Un Al A'nah brancdes 1O.0 532

Main Road/Sur Al B1ush 1.5 441

21.5

-74-

ANEX 17Page 3 of 4

SUMMARY OF BETTERMENT WORKSBY WILAYAT1986 - 1990

Surface StabilizedTreatment Gravel

Area Wilayat km- km.*

Batinah "A" Barka 6.8 38Al Masana'ah 14.50 -A'Suwayq 22.6 74A'Rustaq _ _

Sub Total 44.00 122

Bat inah "B" Al Khaburah 61.5 25Saham 34.5 3Sohar 30.5 15Liwa - 24Shinas 21.5 18

Sub Total 148 85

Interior "Al Adam - 55Nizwa - -

Bahla 33 -Samail 17 -Hamra 2 -Izki 5 -Sub Total 57.0 22.0

Dhahira Unqal 20 -Ibri 34 16Sub Total 54.0 16.0

Sharqiya "A" Ibra 17 -Badiyah - 18Sub-Total 17 -

Service Road Bait Al R.H.S. 146.5 -L.H.S. 232.2 -

Barka/Al Uqr 378.7 -

Batinah CoastalRoad 97.30 -

Total Length in the Northern Region 796.0 280.0

excluding the remote area (1280 )m.) proposed for stabilized gravel.

* . 6 - 75 -

ANNEX 17Page 4 of 4

Dhahira Dbri Meskin/Al Hayal/ BaniKalban 15.0 316

Al Dariz/Bat towards Al Hajr 19.0 396

34

Yunqul Yunqul/Mirry (part) 20.0 924

20

Interior Hamra Al Hamra interior/the school 2.0 342NA"

Adam

Bahla Wadi Quriyat/Government Farm/Bisyah Jebreen intersec-tion 22.5 898

Jebreen/Wadi Quriyat 10.5 545

33.0

Sanail NAG Al Meghbariyah/Seima 17.0 542

Izki Main Road/Birkat Al Mawz 5.0 851

SharqiyaNAn T1bra Main Road/Al Serm/Bateen 17.0 931

(B) Service Roads

he R.H.S. Service zrad between Bait Al Baraka Rdbt. and Al Uqr Rdbt.excluding the stretches included in H.M.P. and others under construconat Sobar. The reaining length = 146.5 Jam.

The expected traffic>500 VP.d

The L.H.S. Service road between Bait Al Baraka rdbt. and Al Uqr Rdbt. oftotal length 232.2 km.The expected traffic > 300 V.Pd.

(C) The Oastal Road

The coastal road alcng Batirah OA" and 3B" excluding the stretdces includedin the .M P. and others under ctrsuction.

The nuling length 97.30 Ikm.

The expcted traffic> 500 V.Pd.

ITtal length proposed for surface treatment 796 bm.580 in to be cr nstructed by Contractorsand 216 Im to be con5tructed by D.G. foroes.

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