Sixth Highway Project

LO8,t 6V0-CO FILECOPY ItRESTRICTED

Repor No. PTR-44a Public Disclosure Authorized This reportwas prepar*4for use within the Bankand its Afliated organizations. Theydo not acceptresponsibility for its occuracyor compless. Thereport may not be publishednor may It be quotedas representingtheir views.

INTERNATIONAL BANK FOR RECONSTRUCIION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized

APPRAISAL OF

THE SIXTH HIGHWAY CONSTRUCTION PROJECT

COLOMBIA Public Disclosure Authorized

April 28, 1970 Public Disclosure Authorized

Transportation Projects Department CURRENCYEQUIVALENTSs February 1970

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

FISCAL YEAR

January 1 - December 31

UNITS OF WEIGHTSAND HEASURES: Metric

Metric: British/U.S. Equivalents

1 meter (m) - 3.28 feet (ft) 1 kilometer (km) - 0.62 mile (mi) 1 square kilometer (km2 ). 0.386 square mile (sq. mi) 1 metric ton (m ton) 1.1 US short ton - 0.98 long ton

ABBREVIATIONSUSED IN THE REPORT:

ADT - Average Daily Traffic CNR - Colombian National Railroads DANE - NationalDepartment of Statistics INTRA - National TransportInstitute MOP - Ministry of Public Works TAMS - Tippetts-Abbett-NkCarthy-Stratton (ConsultingEngineers, U.S.) COLOMBIA

APPRAISAL OF SIXTH HIGHWAY PROJECT

TABLE OF CONTENTS

Page No.

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

1. INTRODUCTION ......

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

A. General ...... 2 B. The Transportation Sector .3 C. Transport Coordination. 5

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

A. Highway Network . .8 B. Highway Administration ...... 8 C. Highway Planning and Financing. 9 D. Highway Engineering . .10 E. Highway Construction. 10 F. Highway Maintenance ...... 11 G. Characteristics and Growth of Road Traffic 11

4. THE PROJECT. .... 12

A. General Description.. ... 12 B. Bridge Construction . 12 C. Road Reconstruction and Improvement . 13 D. Consulting Services for Supervision. 13 E. Cost Estimates and Financing . .14 F. Execution ...... 17

5. ECONOMIC EVALUATION .. 18

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

6. RECOMMENDATIONS . . .21

This report was prepared by Messrs. Migliorini (engineer) and Shields (economist) on the basis of an appraisal mission during November/December, 1969. TABLE OF CONTENTS(Continued)

ANNEXA Bank Lending in the Colombian Transport Sector

CHART

1. Organisation of Ministry of Public Works

MAP

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

TABLES

1. National Highways by District 2. Departmental Roads 3. Consultants Employed in the Project 4. Air Traffic 1964-1968 5. Imports and Exports Through Major Colombian Ports 1958-68 6. Sources of Revenue for 1969-72 Highway Program 7. Past and Projected National Highway Expenditures 8. Ministry of Public Works - Highway Design Standards 9. Vehicle Registration 1958-1967 10. Motor Fuel Consumption, 1958-1968 11. Project Design Standards 12. Paving Program 13. Weighted Vehicle Operating Costs on Good Paved Road Over Level Terrain 14. Operating Cost Coefficients for Different Highway Conditions COLOMBIA

APPRAISALOF THE SIXTH HIGHWAY PROJECT

SUMMARY AND CONCLUSIONS i. The Bank has been closely associatedwith highway developmentin Colombia since 1951, and the proposed loan will continue the upgrading of the national highway system. The projectwill include a major highway bridge, the paving of 1,618 Km of highway, the constructionof 9.5 Km of highway and consultingservices for constructionsupervision. The completion of this paving program, which will add over 30% to the existing paved network (Tables 1 and 2) will provide, for the first time, paved links between all the major inland cities of the country and their.respective ports. The program will upgrade most of the heavier trafficked, presently unpaved, sections of the national network. ii. The total cost of the project, including contingencies,is estimated at US$62 million equivalent. The Bank loan of US$32.0 million equivalentwill finance the estimated foreign exchange cost of construction and 50% of the cost of consultants' services. The remaining funds will be provided by the Government. The proposed participation in consultants' costs entails local currency financing of about US$0.8 million equivalent. iii. The project will be the sixth highway project financedby the Bank in Colombia since 1951. Bank/IDA financing has totalled $103.55 million equivalent. The Bank has also assisted the railways in Colombia, having provided loans totalling $94.6 million equivalentover the same period. The most recent highway loan was made in 1968 and is still under execution;progress is in general satisfactory,although constructionis rather slower than expected. The Governmenthas, during negotiations, given further assurancesregarding reorganizingthe Ministry of Works, which was initiated under the 1968 loan. iv. Consultants (mainly local, supplementedby US firms) have been responsible for the detailed engineering of the project. The same consultants will assist the Government in prequalifying contractors, analysing bids and supervising construction. The cost estimates are considered accurate and adequate contingencies have been included. v. The project is technically and economically sound. The economic rates of return for the differentworks range from 10% to 25%. vi. Constructioncontracts have been, or will be, awarded on the basis of international competitive bidding. Execution of the project will be the responsibility of the Ministry of Public Works. - ii - vii. The possibilityof imposing tolls on Barranquillabridge traffic has been raised by the Government. The Governmenthas agreed that, upon completion of the bridge, a study based on variationsin rates will be undertakento test the effect of different levels of tolls on bridge traffic. The Governmentwill subsequentlyagree with the Bank on the criteria to be employed in determiningthe structure and level of tolls to be charged. These criteria will be consistentwith achieving the economic benefits from the constructionof the bridge which were forecast in the feasibility report.

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

APPRAISALOF THE SIXTH HIGHWAYPROJECT

1. INTRODUCTION

1.01 The Governmentof Colombiahas requesteda loan to help finance a project (see Map) costing about US$62 million equivalent including (a) the constructionof a major highway bridge, (b) the paving of 1,618 km of national highways, (c) the constructionof 9.5 km of multi-lanehighway and (d) consulting services for the supervision of the above works.

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

Loan/Credit Date Signed Amount

Loan 43-CO 1951 $16.5 million fully disbursed

Loan 84-CO 1953 $14.35 million fully disbursed

Loan 144-CO 1956 $16.5 million fully disbursed

Loan 295-CO 1961 $19.5 million fully disbursed

Credit 5-CO 1961 $19.5 million fully disbursed

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

TOTAL US$103.55million

1.03 The history of Bank lending in the transportsector is described in Annex A. In brief, the Bank has tried to help create a viable national highway system and a healthy highway administration;the former aim has to a large extent been achieved,and present investmentis mainly for improving the network to meet increasingtraffic demands. As regards the administration of highways, the Ministry is in the process of reorganizingitself followingconsultants' recommendations; this reorganizationis being assisted under the most recent highway loan (550-CO in 1968) but progress has been uneven. During negotiations,the Governmentconfirmed that it would continue to implementthe Ministry reorganization. Progress otherwise under Loan 550-CO has been satisfactory although construction was hampered somewhat by bad rains in 1969 and is a little behind schedule. -2-

1.04 This report was prepared by Messrs. Migliorini (Engineer) and Shields (Economist) on the basis of feasibility and final engineering studies prepared by Colombian consultants INGETEC (in association with TAMS, U.S.), INTEGRAL(in association with Gannett, Fleming, Corddry and Carpenter, U.S.), and several other Colombian consulting firms (see Table 3), and on the basis of an appraisal mission which visited Colombia in November/December 1969.

2. BACKGROUND

A. General

2.01 The Republic of Colombia occupies an area of more than one million km2 , roughly equivalent to that of all six members of the European Economic CormAunity. It is bordered by Venezuela and Brazil to the east, Peru and Ecuador to the south and Panama to the northwest. It has coasts on both the CaribbeanSea and the Pacific Ocean. With 21 million people, it has the third largestpopulation in South America and the growth rate of 3.3% p.a. will shortly make it secoud to Brazil. Urban populationis now about 50% of total populationand is growing much more rapidly than the national average.

2.02 Because of its topography,with altitudesranging from sea level to almost 6,000 a, climate and vegetation vary widely. The greater part of both urban and rural populations is concentrated in the elevated Bogota- Cali-Medellintriangle which is about one-fifth of the country'sarea. The only other large concentrationsof population occur around the Atlantic sea- ports of Cartagenaand Barranquilla,where considerableindustrial activity is located.

2.03 Agricultureaccounts for nearly 30% of Colombia'sGDP (compared with 37% in 1958). Manufacturingindustry accounts for about 17% of total GDP. Commerce,with 14% is the next mDst importantsector. Mining, services and other activitiesmake up the remainder. The principal mineral resourceso far discoveredis oil, which at present supplies 10% of the country's total exports as well as domestic requirements. There are also extensive deposits of coal, which, in the area of Paz del Rio, where iron ore is also found, support a steel mill.

2.04 Colombia'sGDP increasedby almost 5% p.a. between 1958 and 1968, while the population grew at more than 3% during the same period. Per cap- ita income is presently estimated at about US$280. A shortage of foreign exchange persisted in the decade to 1969, due to the low level of coffee prices in that period. Rising coffee prices during 1969 and their probable continuationin the near term presage an improvementin the foreignexchange situation. The country's reliance on coffee exports has been steadily declining over the last decade, but this commoditystill accounts for 64% of - 3 - the total value of exports comparedwith 74% in 1958. There have been substantial increases in other exports, notably in oil, cotton, sugar, cattle, and tobacco. The Government'spresent objective is to achieve a sustained growth rate of about 6% in GDP. This was almost achieved in 1968, and it has been estimated that a rate of at least 6.5% was attained in 1969.

B. Transportation Sector

2.05 The three mountain ranges of Colombia present formidable barriers to movement between the main areas of population,which until recently developed as separate, almost isolated communities. The advantage of having coastlines on both the Atlantic and the Pacific is offset by the difficulty of movement from the coasts into the interior.

2.06 The distributionof freight traffic between modes of transportin 1966, the latest year for which data are available, was as follows:

Year Rail Truck River Coastal Shipping Air Pipelines Total

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

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

Railways

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

Highways

2.08 Colombia has some 45,000 km of roads of which about 5,000 km are paved, principallywith asphalt. The total number of road vehicles -- 260,000 in 1968 -- has been increasingby about 6% p.a. in recent years, -4-

and trucks by about 4% p.a. This is a fairly slow rate of growth compared with that in other countries at a similar stage of development,though there has been a slight trend towards larger vehicles, so that total trucking capacity has consequentlybeen expanding at a somewhat faster rate than the number of trucks. On the major trunk highways, truck traffic predominates.

2.09 About two-thirdsof public investmentin the transportsector is being devoted to highway constructionand reconstruction. To a large extent, the highway network has complementedthe railway system rather than competed with it. As shown above, the railway'sshare of total traffic was the same in 1966 as in 1958. The provision of modern highways has resulted, nevertheless,in considerablediversion of traffic from rail to road in particular cases. In some cases this was due to the rundown condition of the railway; however, on the Paz del Rio-Bogota route steel traffic formerly lost is returning to rail now that a reasonable service can be offered. On the other routes, particularly Bogota-Espinal-Ibague, Cali-Medellin, and Cali-Buenaventura, improved road transport is likely to offer sufficient advantagesfor many products to attract more traffic from the railway. Dev- elopment of communications in southern and eastern Colombia will be in the form of highways, and the Government has prepared a feeder road program to complementthe primary and secondary highway programs now underway.

Air Services

2.10 Colombia'svery difficult terrain encouragedthe early development of air services for internal as well as international transportation. There are about 650 landing facilitiesin the country. In addition to the four internationalairports at Bogota, Barranquilla,Medellin and Cali, there are some 25 other airports each handling at least 1,000 passengers a month. Internal passenger traffic increasedby 4.6% p.s. between 1964 and 1968, but internal air freight movement, as shown in Table 4, is negligible and static. In 1968, only 103,000 tons of traffic, generating72 million ton-km, were handled. There is evidence of recent over-expansionof investment in airport facilities,although selective investment (such as, at Medellin, where the present site is operationallydifficult) can still probably be justified. In 1967, Avianca cancelled its Bogota-Popayanjet flight and the new airport at Popsyan is almost unused, because a good road now connects that city with Cali. Other recent improvements in surface transport facilities have led to a decline in air traffic on certain routes.

Ports

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

import substitution effects. When present additions at Buenaventura and Santa Marta are in service, the Government considers that it will have adequate port capacity for the next ten years. There is evidence in the ports, particularlyBuenaventura, of inefficientpractices which lead to very slow truck turnaround time. During loan negotiations,it was agreed that the Governmentwould undertakea study, to be completedby mid 1971, to determinemethods of improvingcargo handling operationsin its major ports and especiallyreducing the turnaroundtime for trucks serving the port of Buenaventura. The Government will consult with the Bank on the recommendations resulting from the study and their implementation.

River Transport

2.12 There are several navigable rivers in Colombia, but 96% of the inland shipping is on the Magdalena and most of the rest on the Cauca. River shipping is dependable in all seasons on the lower regions of the Magdalena,but upriver from Gamarra (478 km from the mouth) navigability is seasonal. The volume of traffic varies from year to year accordingto the conditionof the river, and in recent years there has been competition from the Atlantic line of the railroad,over the whole haul but especially in the northern reachesof the river. Pipelines also provide competition for petroleumproducts, which constitutethe main traffic on the river. Nevertheless,a record 2.8 million tons of river trafficwas recorded in 1968. Passenger traffic has suffered much more from the improvement of road and rail services in the Magdalena Valley. In 1956, 363,000 passengers were carried on the river. In 1966, the last year of record, only 7,000 travelledby this mode.

Pipelines

2.13 Petroleum products, Colombia's second largest export earner after coffee, are mainly transported by pipeline. From the oilfields located near Barrancabermeja, crude oil pipelines supply five refineries, including one at Cartagena,whence- refined products are shipped via the Panama Canal to Buenaventurafor distributionto western Colombia. The new Caldas line from Dorada to the Manizales area may affect this distribution pattern. Another line supplies crude oil to Santa Marta for export. Refined products are also moved by pipeline from refineries to Bogota and Medellin, and from Buenaventura to the Cauca Valley. The Trans-Andean pipeline from the Orito field in Putumayo to the Pacific port of Tumaco was put into operationearly in 1969. It was expected,within a year, to carry 100,000 (and ultimately150,000) barrels per day, reversinga drop in Colombian exports of crude which fell from 31.1 m barrels in 1967 to 18.5 m in 1968.

C. Transport Coordination

2.14 Responsibilityfor the administrationof the transportsystem is divided among a number of agencies and decentralisedorganizations. The Ministry of Public Works is responsiblefor the national highway system and finances the constructionand maintenanceof national roads through the Na- tional Highway Fund. The Ministry is also responsiblefor the National -6-

Feeder Road Fund, although local Governmentbodies also contributeto this. The National Transport Institute (INTRA),created in 1968, is responsible for regulatorypolicy and its execution. Port constructionand operation are the responsibilityof the National Port Authority (COLPUERTOS). Transport on the Magdalena River is controlledby the National ShipownersAssociation (ADENAVI),which is responsiblefor maintenanceand improvementof the river, most river ports and the Canal del Dique which runs between the port of Cartagenaand the Magdalena. The National Shipping Company (NAVENAL)operates on the rivers in the eastern part of the country and on the Amazon. The Colombian National Railroads (CNR) are responsible for all railroads.

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

2.16 In spite of the looseness of the coordinating machinery, major mistakes in investment planning have been avoided. The Government is aware that problems such as labour productivity and utilization of existing equipment are more serious than lack of capacity, especially in ports. In the current 1969-1972 investment plan, the need is acknowledged for studies prior to investing in extensions or improvements, particularly where there is close modal competition. INTRA and the recently established Highw-y Planning Office in the MOPshould also contribute to improved coordination. Work is continuing on the development of a model to compare the system effects of alternative transport investment programs. This is a cooperative effort between the Planning Office, MOP, the Universityof Los Andes and the Bank, and it is hoped to have the model operative in Colombia in 1971.

2.17 In 1966, when the National Road Fund was establishedand new ad valorem gasoline and diesel taxes were introduced,road users were paying, in the form of these taxes, about 50% of the Government'snational road expenditures. However, from 1970, due to the combined effects of inflation, failure to adjust the exchange rate applicable to payments to petroleum companies,and a greatly increasedhighway program, the contributionof these taxes to the highway account will be only 30% to 35% of total anticipated expenditures on highway construction and maintenance.

2.18 The current pump price of gasoline, at US 15¢ equivalent per gallon, is probably the cheapest in the world. This low price for gasoline is possible because of the artificialexchange rate applicable to payments to petroleum companies for crude oil refined for domestic consumption. This rate has been fixed at nine pesos to the dollar since 1962, although the - 7 - current market exchange rate is about eighteen to the dollar. Thus, there is a direct government subsidy to highway users, which in 1969 was about 307 million pesos. Moreover, since both gasoline and diesel excise taxes are on an ad valorem basis, the yield is about 60% of what it would be if the ex-refinery price of gasoline reflected a proper market price for crude oil. If the exchange rate is unified, as the Government has indicated it intends, road users would be paying for between 60% and 70% of the annual outlays on national highways by 1972. 2^19 The unification of the petroleum exchange rate clearly has impli- cations for the Government's fiscal strategy as a whole, as well as for the transport sector. Furthermore, the CNRhas been trying to rationalize its railway operations, both by physical improvements and a flexible pricing policy; these efforts are undermined by the subsidy of road transport.

2.20 As part of its policy for simplifying its foreign exchange system, the Government has studied suitable methods for the adjustment of the crude petroleum exchange rate with a view to its unification with the market rate over two or three years. A change in the rate to 17.0 pesos to the US dollar would raise ton km rates for truck transport by less than 9%. Ajustment of the rate would probably be gradual; below, a comparison is made of estimated revenues from the gasoline and diesel taxes with and without the proposed changes if carried out in three steps by 1972: Revenue No Revenue with Subsidy Market Change (in Petroleum Change (in To Central Bank Exchange million Exchange million Foreign Exchange A/C Year Rate pesos) Rate pesos) (in million pesos)

1969 17.5 693 9.00 693 307

1970 18.8 806 13.30 970 168

1971 20.10 855 17.60 1185 78

1972 21.30 904 21.30 1412 - 8 -

3. THE HIGHWAY SECTOR

A. Highway Network

3.01 Colombiahas a road network totallingabout 45,000 km in length, of which about 19,000 km form the national highway system, a further 19,000 km are departmental,and the balance are municipal (linkingtowns with out- lying communities and farms) and private (such as to oil concessions). The departmental system includes about 3,000 km of "caminos vecinales", which are low standard feeder roads built under a national program started in 1960; materials and labor for these are furnished by the local community assisted financially and technicallyby the departmentaland central authorities. About 20% of the national system is paved, against less than 5% of the departmentalroads (Tables 1 and 2). The national highway network over the years 1962 to 1969 has increased from 16,500 km to about 19,000 km.

3.02 Due to the difficult terrain (which leads to high construction costs) and to the isolationand traditionalindependence of the various regional centers, only in the last two decades has there been any real effort to link the main population and economic centers of the country by good roads.

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

B. Highway Administration

3.04 The MOP is responsiblefor planning,constructing and maintaining the nationalhighway network. The Minister also has separate but more ten- uous responsibilitiesthrough semi-autonomousagencies for railways,river transport,ports, INTRA and for technical advice on the constructionof feeder roads. The national highway system accounts for about 90% of MOP's efforts and expenditures. MDP's organization is shown in Chart No. 1.

3.05 Since efforts to create a modern transport system started in the early 1950's, limitationshave been imposed by organizationaldifficulties within the MOP which operated with archaic proceduresand systems. Since it first became involved with highways in Colombia, the Bank has encouraged the modernizingof the highway organization,and in 1966, the Government engagedmanagement consultants to review the Ministry's operations,to make recommendations for improvementand, subsequently,to help implement these recommendations. The consultants appointed were COMEC(Mexico) in joint venture with Frederick R. Harris (U.S.). The contract expired at the end of December 1969, but COMECexperts are continuing to advise in the organization of highway maintenance. The implementationphase is, however, still - 9 - in progress. Progress has been achieved in almost all the Ministry's activities,and particularlyin maintenance,but not in all cases at the pace which the Government had foreseen at the time the Fifth Highway Loan (550-CO)was made. The main reason for this has been the difficultyof recruttingsufficient staff of high calibre, government salaries generally being unattractive and not competitive with the private sector. During negot.ations, the Bank reviewed progress on the reorganizationprogram with the o-ernment which reaffirmed its intention to reorganize the Ministry and indicated its plans for certain key areas where progress has lagged -- speclfi:d21y, in personnel administration, organization of the Design Divi- sion, and improverient of workshops, equipment maintenance and spare parts procurement.

C. !Llgz_ lani and Financing

3.06 The management consultants helped MOP to inventory the national highway system. About 7,000 km have so far been covered, and it is ex- pecteui that the inventory will be completed during 1970; it will facilitate future highway pianning and operations,and help to establish the basis for classifying roads. The first national traffic census was conducted in l968; the results were used together with the inventory and field inspec- tions and some additional counts to plan the highway paving program which is part of the present project. The analysis of similar traffic counts for 1969 is in progress, and counts will be continued on an annual basis. Confirmation that the Governmentwill continue to collect data needed for highway operations and planning was obtained during negotiations.

3.07 In the past, highway projects undertaken by MOP were numerous and often overly ambitious. As a result, many were never completed. The -- Licy of the last four years has been to curtail expenditureon less economic improvementsand to concentrateon completing projects already begun. Funds for further feasibilitystudies to prepare a pipeline of economicallyattractive projects were provided in Loan 550-CO but have not yet been committed, as a study program has not yet been agreed upon and, therefore,no additional provision for this purpose is made in this project. The Governmenthas proposed a list of highway studies and these are presently under review by the Bank.

3.08 One of the main causes of poor performance on earlier highway projects was the inadequate provision of local funds by the Government for ambitious road programs; this not only forced constructioncontrac- tors to gear their output to known availabilityof funds, but led directly to the financial failure of some firms. The establishmentof the Na- tional Highway Fund at the end of 1966 provided a more assured source of financing for highway works. However, greater dependencewill in future be placed on the general budget contribution,because, unless the petroleum exchan-e rate is reformed (para. 2.18), revenues to the Fund from fuel taxes will fall short by between 1,300 m. pesos and 1,600 m. pesos p.a. between 1970 and 1973 (Table 6). Table 7 shows recent and projected expenditures on the national highway system. - 10 -

D. Highway Engineering

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

3.10 In Colombia,pavements have frequently been overdesignedto overcome deficienciesin drainage. However, MOP is being assisted by an expert from the Road Research Laboratory (UK), whose main task is to review and advise on pavement design in the country. The services of this expert are being partially financed from Loan 550-CO.

3.11 Although many of its personnel are competent, the Ministry has limited design capacity and uses consultants for this purpose. While reorganization of the Ministry could increase its engineering capability and thus enable some design to be undertaken directly, it will continue to be necessary to use consultantsfor much of its design work.

3.12 Consultantshave frequentlybeen engaged by Government on contracts written in very general terms which can result in high engineering costs. Under the proposed project, tighter contractingarrangements are being made which will simplify administration,improve control of consultants and keep costs at reasonable levels.

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

E. Highway Construction

3.14 Modern methods of highway construction were first introduced in Colombia in the early 1950's, when experienced foreign contractors were employed on the first Bank highway project. Mountainous terrain and cor- responding heavy earth moving led to extensive use of heavy equipmentwhich had not previously been operated to any extent in Colombia. There are now several local firms capable of undertaking contracts worth US$4 to $5 m equivalent, and many smaller firms. In the current Loan 550-CO, all road constructionis being carried out by Colombian contractors. However, the Colombian contractingindustry may be strained to handle the new project together with othgoing work and additional projects likely to start in the forthcoming fiscal year, and foreign contractors should have more opportunity to participate. - 11 -

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

3.16 Major highway constructionis now almost invariably carried out under unit price contracts let after competitivebidding. Delays formerly experiencedin legalizing contractshave been overcome; contractscan now become effectivewithin thirty days of award, The Government agreed during negotiationsthat foreign contractorswould have the right to obtain the foreign exchange necessary for their operations.

F. Highway Maintenance

3.17 The quality of maintenancework on the national highway system was in the past uneven; central control was loose and results were depend- ent on the interest and ability of individual district engineers. The activity of the maintenancedivision was mainly geared to the reconstruction of pavementswhich had deterioratedbecause of deferred maintenance; the introductionof extensive routine maintenancehas taken place only recently. In more recent years, however, many improvementshave been made (Annex A). Management consultantshelped to establish a pilot program in one of the maintenance districtswhich has already yielded considerable benefits, and the results of this program are being extended now to other districts. Accounting controls have been established,standard maintenance procedures have been introduced, and routine maintenance is now planned centrally on an annual basis.

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

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

G. Characteristicsand Growth of Road Traffic

3.20 The road vehicle fleet grew at an average annual rate of 5.6% p.a. between 1958 and 1967 (Table 9). The number of trucks increased at a lower rate of about 4%, with trucks of less than 3 ton capacity increasing at 8% and heavier trucks at 3.2% p.a. There is evidence of a trend towards heavier trucks, but the effect on the total truck fleet is not very significant. The statistics show somewhat quicker growth for motor fuel consumptionthan vehicle registrations;6.6% annually for gasoline and 7.2% for diesel (Table 10). The increased motor fuel taxes introduced in 1966 had no discernibleeffect on fuel consumption. Fleet growth has been - 12 - largely limited by import restrictions. The motor industry is limited to assembly of cars, buses and trucks, but plans for manufactureare now being discussedwith foreign interests.

3.21 A draft law on vehicle weights and dimensionshas just been prepared to replace Law No. 0102 of 1955, but the maximum allowable axle loads are unchanged, i.e., 8.2 m tons for single axles and 14.5 m tons for tandem axles. All trucks will be required to carry a certificate issued by INTRA describing their dimensions. The proposed law is acceptable and the prob- lem, as with the existing law, will be enforcement. About 95% of trucks are still single-axle vehicles, and overloading is common. The government has banned the import of trucks with dimensions and axle load capacities above legal limits and has indicated that it will not license replacement of engines for such trucks imported during an earlier period of lax enforcement of loading standards. INTRA has recently introduced highway patrols to enforce compliance with the law. The steps are generally in accordance with those agreed with the Government in 1968. During loan negotiations the Government reaffirmed its intention to ensure that vehicle weight and dimensions will be properly regulatedon national highways.

4. THE PROJECT

A. General Description

4.01 The proposed project consists of:

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

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

(iii) The paving of 1618 km of primary and secondary highway; and

(iv) Supervisionby consultantsof (i), (ii), and (iii) above.

B. Bridge Construction

Barranquilla Bridge

4.02 This bridge will replace the ferry service across the Magdalena (the largest river in Colombia) on the highway between Barranquilla and Santa Marta. This is part of the Trans-Caribbean highway, the eastern section of which is currently being constructed with assistance from IDB. - 13 -

The basic design for the bridge was of steel on steel piling, but it is now proposed to award the constructioncontract for an alternativedesign in prestressed concrete on cast-in-place concrete piles. The length will be about 1499 m with access ramps of 1014 a and 1335 m connecting the structure to the existing highway system. The main span of the bridge will be 140 m and will have a vertical clearanceof 16 m to permit river navigation. The design standards are shown in Table 11.

C. Road Reconstruction and Improvement

El Pailon - Buenaventura Road

4.03 This 9.5 km road is the last section of the new highway connecting Buenaventura, the main port of the country, with its hinterland. The Bank under Loan 550-CO is financing the completion of the eastern portion of this highway, which is expected to be open to traffic in 1971. The road from El Pailon to Buenaventuracrosses a thickly populated area, and the improved alignment selected is the only technicallyfeasible solution because the port and town of Buenaventuracan be reached only along a natural isthmus through mangrove swamps.

4.04 The improvementwill be to a two-lane paved highway with an embankment sufficientin width to permit the provision of two additional lanes in the future when required (possibly1982) and for widening the existing El Pinal bridge from 6.1 m to 7.9 m. Design standards are in Table 11.

Paving Program

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

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

D. ConsultingServices for Supervision

4.07 A list of the consultantswho will be employed on supervisionis given in Table 3. In all cases they are the firms which earlier carried out the detailed engineering.

For BarranquillaBridge

4.08 The feasibilitystudy for this project was carried out by INGETEC/TAMS,financed from Credit 5-CO. The bridge siting and layout were agreed with the consultantsto the Ports Authority on river problems affectingport operation (Sir Alexander Gibb, U.K.) and with the - 14 -

French advisers to MOP on hydraulics and river training. INGETEC/TAMSalso prepared the basic design and the bidding documents,have evaluatedbids, and will supervise construction. The alternativebridge design submitted by the successfulbidder was made by ProfessorMorandi (Italy);it has been reviewed by INGETEC/TAMSand found acceptable.

For El Pailon-Buenaventura

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

For the Paving Program

4.10 The engineering for this program was prepared by seven local consultants (see Table 3). INGETEC/TAMSacted as coordinating consultants and prepared the feasibility study for the whole program. It is proposed to retain the services of the same consultantsfor supervisionof construction, and INGETEC/TAMSwill continue to coordinate the work of the other consultants in harness with MOP staff and its advisors, in particular the paving expert provided by the U.K. Road Research Laboratory.

E. Cost Estimates and Financing

4.11 The total cost of the project is estimatedat US$62.4 m equivalent, including allowances for quantity and price escalation. A summary follows: SUHMARY OF PROJECT COSTS (December 1969 Prices)

Colombian Pesos US$ Equivalent Bank Participation (Million) (Million) US lion Local Foreign Totaal ooreign Tta Equivalent

CONSTRUCTION, RECONSTRUCTION AND PAVING

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

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

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

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

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

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

CONSULTANTSFOR SUPERVISION OF 1

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

EE1 Pailon-Buenaventura Road 1.8 0.4 2.2 0.1 0.02 0.12 o.o6 (50%)

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

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

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

TOTAL 560.8 563.0 1,123.5 31.2 31.2 62.4 32.0

NOTE: Rounded Totals The exchange rate used in this Table is 18 Colombian pesos to US$1.00. - 16 -

4.12 The coat estimate for the Barranquilla Bridge is based on bids received. The cost estimates of the El Pailon-Buenaventura highway by INTEGRAL/Gannett, Fleming, Corddry and Carpenter, were confirmed during negotiations, when detailed engineering was nearly completed. Cost estimates for the paving program were based on detailed engineering and were confirmedduring negotiations.

4.13 A 10% contingencyitem has been provided in the cost estimate for possible quantity increases. This is considered reasonable in view of the advanced stage of engineering.

4.14 About 7-1/2% has been allowed for global price increasesduring the course of the project. Local cost increaseswill be accommodatedby an acceptableescalation formula, and it is assumed that adjustments in the foreign exchange rate of the peso will reflect changes in the relative purchasingpower of domestic and foreign currencies.

4.15 The cost of consultingservices has been estimated on the probable number of man-monthsrequired, applying average local and foreign man-month rates. A contingencyallowance of 10% has been added to the estimated cost of these services.

4.16 The loan will finance the foreignexchange component of construction cost, estimatedas follows:

(i) 58% for BarranquillaBridge; and

(ii) 50% for El Pailon-Buenaventuraand the Paving Program on the basis that the foreign exchange component would approach 44% if all works are carried out by local contractors and about 58% if they were to be carried out entirely by foreign contractors. On the assumption that about one-third of the works would be awarded to foreign contractors, the foreign exchange component would be about 50%.

4.17 It is proposed that the loan will finance50% of the cost of consulting services. The supervisionof the program will be largely undertaken by Colombianfirms. The Bank should encourage the use of capable local consultants where these exist, as in Colombia,and should be prepared to finance a substantial part of the cost, as would have been the case if foreigncon- sultants were employed. It is therefore proposed that the loan will finance all consultants in about the same proportion as that applied to the construction works. This will entail local currency financing of the order of US$0.8 million equivalent. - 17 -

4.18 On the basis of the constructionschedule, the tentative annual breakdown of expenditures between the Government and the Bank is as follows:

(US$ Million Equivalent)

Total Government Share Bank Share

1970 7.9 3.9 4.0

1971 20.5 10.0 10.5

1972 22.4 10.9 11.5

1973 11.6 5.6 6.0

TOTAL 62.4 30.4 32.0

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

4.19 Adequate local funds will be made available through the National Highway Fund (supported as necessary by budgetary allocations)for the execution of the project. It was agreed during loan negotiations that the Bank would review the annual budget of the Fund and receive periodic statements indicating the status of the allocations made for the individual items to be financed by the loan.

F. Execution

4.20 The executing agency would be the MOP assisted by consultants. The Government has negotiated draft contracts with the supervisory consultants along the lines indicated in para. 3.12. These have been reviewed and found satisfactory. The conclusion of these contractswill be a condition for effectivenessof the loan.

4.21 The constructionperiod will be about 30 months for the Barran- quilla Bridge, 24 months for the El Pailon-Buenaventuraroad, and about 40 months for the paving program. For bid purposes, the 48 sections of roads comprising the paving program have been grouped into 13 packages (Table 12). These packages have been selected on the basis of geographical proximity and are of a size to make them attractive to both local and foreign contractors;six contractswill be between US$1 and 2 million, five between $2 and 4 million, and two over $8 million. - 18 -

4.22 Internationalcompetitive bidding (permittingsubmission of bids for alternativedesigns) has been held for the BarranquillaBridge; the consultantshave recommendedaward to the lowest evaluatedbidder (Lodigianiof Italy, in associationwith Cuellar Serano Gomez of Colombia). The Government and the Bank agree with the recommendationand a contract should be signed in May 1970 and work should start in July. Prequalification has been completed for the paving program -- eleven foreign firms were pre- qualified - and bids have been received for the first stage of the program. It is planned that all paving contracts will be started by July/August 1970. Bids for El Pailon-Buenaventura will be invitedby mid-1970.

5. ECONOMICEVALUATION

A. General

5.01 The initial selection of road sections for the paving program was made after a study of the results of the 1968 MOP traffic census. Some road sections with low trafficvolumes were studied furtherbecause their paving was expected to attractsubstantial traffic from other, longer routes. The BarranquillaBridge and the El Pailon-Buenaventurahighway were proposed for constructionbecause present and prospectivetraffic volumes at these locationsare leading to congestion.

5.02 The project works are expected to reduce costs of transportby lowering vehicle operatingand time costs, shortening travel distances and eliminating some serious bottlenecks. As a basis for estimating benefits, the coordinatingconsultant (INGETEC/TAMS)prepared estimates of vehicle operatingcosts in Colombia which are shown in Tables 13 and 14. In general, their use indicates that road user savings resulting from the paving of highways in Colombia are about 30 percent, and this is in accord with Bank experienceelsewhere. When the paving leads to the attainmentof a long, continuouslypaved route, for example between Bogota and the Carib- bean Coast, there will be other potential savings in inventory costs, vehicle utilizationand rationalizationof service, which cannot as yet be quantified. These systems effects would make some of the sections in the paving program more attractivethan the calculatedrates of return indicate.

5.03 The forecastsof traffic increase used in economic analysis ranged from 3 percent to 7 percent p.a. and were based on the consultants'study of growth in regional vehicle registrationrates. For the Barranquilla Bridge, the consultantsforecast that trafficwill rise by 9 percent p.a. between 1973 and 1980, and then the rate of increasewill decline gradually to 5 percent p.a. in 1994. This appears reasonable. Only in the case of BarranquillaBridge is an estimate made of traffic generatedby the improvement. Actual traffic growth in Colombia will be closely linked to vehicle import policy since currentutilization rates of all types of - 19 - vehicles are high. With improvedbalance of paymentsprospects it appears probable that future growthwill, if anything,be higher than recent historical growth rates.

B. The Project Roads and Bridge

(i) BarranquillaBridge

5.04 This bridge will replace an existing ferry service maintained partly by the ColombianNational Railroad and partly by the MOP. The benefits from the bridge are attributed to the net differencesbetween the value of vehicle and comercial driver time spent to cross the river via the bridge and via the ferry and between imputed operatingcosts, including stops and starts, incurred in crossing by the two modes. The value of passenger time was not included in the analysis.

5.05 Current traffic using the ferry system is about 1,000 vehicles per day of which 50% are commercialvehicles. A study by consultants (INGETEC/TAMS)forecasts that constraintsof ramp availabilityand stream navigation would impose a limit of 1560 vehicles per day on the ferry operation by 1984. The bridge will remove the physical constrainton traffic growth and a great deal of generatedtraffic will be induced to use the crossing for both short and long journeys. The east bank of the Magdalenais today virtuallyundeveloped, and it is anticipatedthat port relatedactivity and the developmentof the nearby Salamanca island for both tourist and industrialpurposes would be stimulatedby the new facil- ity. The three ferries currentlyin use will be transferred to other locationson the Magdalena to improve transversalconnections in the interiorof the country.

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

1) Completionof La Ye-Santa Marta-Rioacha-Paraguachon Highway to the Venezuelanborder;

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

3) Exploitationof the tourist potentialof Isla Salamanca and the Santa Marta area; - 20 -

4) Expansion of port activities in Barranquillaand extension of port related activity to the east bank of the Magdalena; and

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

All the above are currently funded, programed or at a sufficiently advanced stage of planning (with the exception of the industrial and port developmenton the east bank of the river) to make their realization probable within the forecast period. When the paving program in the current project is completed, the journey between Bogota and the Caribbean coast can be made completely over paved highways. There is, however, a stretch of about 70 km between La Ye and Fundacionwhich may require both realignmentand repaving. This might be considered for a future.loan.

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

5.08 The Government is consideringcharging tolls on the bridge but the level of these tolls has not been decided. The Governmentagreed during negotiationsthat it would undertake a study over the first year the bridge is open to test the effect on bridge traffic of varying the tolls, and will base the criteria for determiningthe structure and level of tolls to be charged on the results of this study. It has been agreed that tolls would be levied in a manner consistentwith achieving the economic benefit forecast in the consultant'sfeasibility report. Receipts from tolls would be credited to the National Highway Fund.

(ii) El Pailon-BuenaventuraHighway

5.09 The Buenaventura-Bugahighway has been under constructionfor over 20 years. Its completion (expectedin 1971) to El Pailon, where it joins the existing Buenaventura-Caliroad, is at present being financed under Loan 550-CO. Between El Pailon and Buenaventuraport there is at present an unpaved road which is unsuitable for present traffic,which ranges from 2,000 vehicles per day at one end, where it is predominantly long distance, to 4,000 near the port, where there is a great deal of local traffic. When the Buga-El Pailon road is open to traffic, some increase in highway traffic at the expense of the railway is expected, although no definitive study has been made of this. - 21 -

5.10 The earlier reconstructionof the El Pailon-Buenaventurasection was delayed because of uncertaintyabout the standards to which this road should be built and also to protracted discussionsbetween the port, railway and highway authoritieson what bridge, railway and public utility relocation might be required and whose responsibilityit should be. The consultants, INTEGRAL/Gannett,Fleming, Corddry and Carpenter,have recommended provision of a highway graded for four lanes, but with only two lanes paved. The additional paving would be undertakenwhen trafficwarranted and, for purposes of economic analysis, this was assumed to be in 1982. The government has confirmedthat the port and railroad authorities are in agreement with the recommended solution;

5.11 The economic benefits consideredwere road user savings resulting from the improved geometricand surface conditionsof the reconstructed road, togetherwith savings from reductions in congestion due to frequent stops and starts. Relocation of the railway line and the constructionof a new railway bridge is unnecessaryat present, but might be undertaken later, perhaps when the four lane pavement is provided,with no disruption to existing highway traffic. With a conservativetraffic increase forecast of 6% p.a., the investmentwould yield an internal rate of return of 11.8% which is acceptable. There would be additional,unmeasured, amenity benefits to the people living along the road.

(iii) The Paving Program

5.12 The roads selected for the paving program have 1970 traffic volumes ranging from 220 to 1,460 vehicles per day. Because some of the improvements consist only of paving with little or no geometric improvements, the economic analysis was restricted to a 10 year life. If traffic growth on these roads in the next 10 years is higher than anticipated,a more rad- ical form of improvement including widening and realignment, will then be advisable. Other roads are carrying sufficient traffic to warrant more than paving, and still others, while presently carrying fairly low volumes of traffic, are on trunk roads expected to carry heavy traffic in the near future; in such cases the improvementswill be up to full trunk road standards. On the last two categoriesof road, a 20 year economic life was assumed and the rate of return calculated accordingly;the roads concerned are indicated in Table 12. On almost all sections, the first year benefit exceeds 10%, which means that the traffic forecast is not critical.

6. RECOMMENDATIONS

6.01 During negotiations,agreement was reached with the Government on the followingprincipal points: - 22 -

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

(ii) the reorganizationof the MOP (para. 3.05);

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

(iv) the ability of foreign contractorsto obtain foreign exchange needed for their operations (para. 3.16); and

(v) a study of the effects of varying tolls on traffic on BarranquillaBridge (para. 5.08).

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

6.03 The proposed project is suitable for a Bank Loan of $32.0 million. A term of 25 years, including a grace period of four years, would be appropriate.

April 28, 1970 ANNEXA

BANKLENDING IN THE COLOMBIANTRANSPORT SECTOR

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

2. The first loan (43-CO)was for the emergency rehabilitationof some 3,000 km of the most important trunk roads - basically to establisha continuousall-weather main road system. The program was highly ambitious, and the difficultieswhich were to be encounteredin carrying it out (cli- matic, geophysical,personnel and institutional)were seriouslyunder-estimated. With rudimentaryengineering and project preparation,construction costs increased drasticallyand work progressed very slowly. The second and third loans (84-CO and 144-CO) were made to enable the original program to be continued and amplified by the addition of other important roads. The originial construction standards were also improved in several cases..

3. The fourth project (Loan 295-CO and Credit 5-CO) was for the completion of certain parts of the original project (still unfinished after ten years), the const-ructionof another 450 km of road and the upgrading of other roads (many of which had been constructed originally to relatively low standards under the earlier loans) to meet the requirements of the rapidly increasing traffic volumes. This project also provided funds for pur- chasing a large fleet of maintenance equipment in recognition of the need to improve highway maintenancepractices. In 1965, as a condition for ex- tending the Closing Date of the loan and credit, the Government agreed to employ management consultants to reorganize the Ministry of Public Works (1OP).

4. The fifth project (550-CO)was for (a) the constructionor reconstruction (with paving) of about 510 km of four national highways, (b) the constructionof a major highway bridge, (c) consultingservices for supervising (a) and (b) above, for preinvestmentstudies and for detailed en- gineeringof further priority roads, and for assistingthe reorganization of the Ministry of Public Works, and (d) the purchase of equipmentneeded for effective reorganizationof the Ministry. Progress on the highway constructionis a little slow largely because of bad rains in 1969; however, the quality of work is acceptable. Contracts for the remaining sections and La Virginia bridge were awarded in mid-1969 and work is only now gain- ing momentum. Consultingservices for supervisionof constructionare satisfactory,and procurementof equipment is underway. The government has prepared a list of pre-investment studies for future highway projects; this is now being reviewed by the Bank. ANNEX A Page 2

5. From 1964, until his retirementin 1969 the Bank stationed an engineer with long experienceof Latin American highway problems in Colombia to provide closer supervisionof the Bank project. This arrangementwas of much value in identifyingand correctingproblems as they arose, but the progress of internal improvementswas sufficientlysatisfactory to warrant its discontinuance.

6. Although the execution of the previous highway projects had been largely unsatisfactory,the Government that came into power in 1966 quickly took importantsteps to correct the situationby the impositionof additional taxes on road users, the creation of the National Highway Fund with ear- marked revenues and the appointmentof consultantsto help reorganizethe Ministry of Public Works. The services provided jointly by COMEC/Harris (Mexico/US)have expired but the Governmenthas extended contractsof experts in the important field of highway maintenance. The reorganization is not complete, but continued general improvement justifies proceeding with the loan now under consideration.

7. In addition to the lending for highways mentioned above, the Bank has made five loans totalling US$94.6 million equivalent to Colombia for railways. The last loan was made in 1968 (551-CO, for US$18.3 million) for track rehabilitationand maintenanceand procurementof rolling stock. The track rehabilitationis six months behind schedule, due to the late deliv- ery of rail from Poland, but some of the delay is expected to be recovered by the end of 1970.

8. Other internationalor national lending agencies have not until recentlybeen particularlyactive in the highway field in Colombia. How- ever, USAID provided funds and equipment for the "Feeder road" program in its early stages and in 1968 IDB made a loan for US$12.7 million for the constructionof the Cienaga-SantaMarta-Paraguachon road which will link Colombia and northern Venezuela. IDB has recently agreed to financea 1550 km feeder road program with a loan of US$17 million and has made loan of about US$15 million for the construction of the Popayan-Pasto highway. Another loan of about US$16 million for the Santuario-Puerto Triumfo highway is being considered. Recently,the Bank of London and South America opened a sterling line of credit for E4 million for the purchase by MOP of British road maintenanceequipment, and the Export/Import Bank and two New York banks have made loans totalling US$10 million for the purchase of road maintenanceequipment in the United States. COLOMBIA: SXITH HIGHWAY PROJECT ORGANIZATION OF MINISTRY OF PUBLIC WORKS

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IBRD 2792R APRIL 1970

Tab j

OOOMBIAs SIXTh HIGWY PROJECT

NATIONALHIOH!S BY DISTRICT

DISTRICTH.Q. PAVED GRAVEL TOTAL MEDELLIN 320 1,345 1,665 CARTAGENA 396 309 705 TUNJA 261 1,720 1,981 MANILALES 530 606 1,136 POPAYAN 116 891 1,007 M)NTEIA 168 329 497 BOGOTA 513 518 1,031 QUIBD 225 225 RIOHACHA 435 435 NEIVA 226 803 1)029 VALLEDUPAR 319 957 1,276 VILLAVICENCIO 58 878 936 PASTO 20 1,316 1,336 B3UCARAMNaiA 345 1,150 1,495 CUCUTA 188 1,666 1,854 IBAGUE 352 909 1,261 PAL4MA 413 4 827 FOREPCIA 66 198 264 SAN ANDRES 12 48 60 TOTAI 4,303 14,717 19,020 ==la== anutw=e own==

HISTORICCOMPOSITION OF NATIONALHIGHWAY NErW~RK

Year Length (Kx11) %PaVed 1962 16,512 U15 1963 16,692 13.7 1964 17,054 14.6 1965 17,479 15.0 1966 17,564 15.4 1967 17,997 16.6 1968 18,842 22.5 1969 19,020 22.6

Sources HOP, Planning Office, December 1969 Thle 2 COLOMBIA:SIXTH HIGHWAYPROJECT

DEPARTMENTALROADS

DEPARTMENT KM PAVED GRAVEL EARTH

ANTIOQUIA 2,461.0 - 2,481.0 -

ATLANTICO 552.4 338.2 180.0 34.2

BOLIVAR 204.1 - 95.1 109.0

BOYACA 860.0 - 552.0 308.0

CALDAS 880.0 - 862.0 18.0

CAUCA 426.9 - 364.9 162.0

CESAR

CORDOBA 267.0 - 155.0 112.0

CUNM1NAMARCA 2,981.7 95.1 2,499.6 387.0

CHOCO _

GUAJIRA 342.2 - 30.0 312.2

HUILA 617.5 - 350.5 267.0

MAGDALENA 181.0 - 28.0 153.0

META 787.0 - 352.0 435.0

NARINO 771.0 - 643.0 128.0

NORTEDE SANTANDER 179.0 - 68.0 111.0

QUINDIO 426.0 - 344.0 82.0

RISALRALDA 507.0 - 497.0 10.0

SANTANDER 1,861.5 - 837.4 1,024.1

SUCRE 164.0 - 76.0 88.0

TOLIMA 1,353.0 - 707.0 646.o

VALLE 3,276.6 79.0 2,929.7 267.9

TOTAL...... 19,118.9 512.3 13,952.2 4,654.4 _ w Xmom*n Source: MOP, December 1969 Table i

OOWNBIA

SIXTH HIMRWAPROJECT

COINSULTANTSE:lIPED IN THE PROJEC

BARRANQUILLABRIDGE

INGETEC- TANS(Colombia/USA)

EL PAIL.ON- BUENAVENTUtRA

INTEGRAL- GANNETTFLElG CORMDRY& CRENTER (Coloabia/ISA)

PAVI?I PROGRAM

INGETEC- TAM (Colcmbia/USA)

NTGRAL - GANNETTFLEOIM CORDDRr& CARPENTER(Colomb±a/JSA) RESTREPOI URIBE (Colombia) C. E. I. (Colombia) PLANES (Colombia) SAMEL (Colombia) VILIADAD (Colombia)

April 28, 1970 COLOMBIA

SIXTH HIGHhAYPROJECT

AIR TRAFFIC 1964-1968

INTERNATIONAL DOMESTIC

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

IN OUT IN OUT

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

1965 111,423 124,028 3,356 3,090 2.54 1337 .111 64 1966 132,516 138,038 4,932 4,402 2.53 1430 .119 74

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

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

Source: DANE, December 1969

CH, !C2W112IA

SIXr ;HIIGT,MAY?ROJ2CT

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

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

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

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

1960 .30 .04 .34 .28 .05 .33 .02 .20 .22 .52 .31 .83 1.12 .62 1.74 1961 .31 .04 .35 .32 .06 .38 .03 .21 .24 .64 .3C .94 1.29 .63 1.92 1962 .33 .04 .37 .27 .c8 .35 .c6 .17 .23 .58 .39 .97 1.24 .70 1.95

1963 .21 .05 .26 .28 .c8 .36 .14 .21 .35 .52. .36 .87 1.14 .73 1.87 1964 .33 .04 .37 .19 .09 .28 .31 .18 .49 .58 .34 .92 1.41 .69 2.10

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

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

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

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

1/ Public Terminals only, excluding petroleum

Source: Colpuertos, Boletin Informativo, September 1969 H Table 6

COLOMBIA

SIXTH HImHWAYPROJECT

SOURCESOF REVEN FOR 1969-72 HmHWAYPROGRAM (Mil1ion Pesos)

SOURCE 1969 1970 1971 1972

Gasoline & Diesel Taxes 693.0 720.0 740.0 760.O

Equipmentrental 6.0 3.0 3.0 3.0

Sale of Equipment and Materials 6.0 10.0 10.0 10.0

Toll fees 5.0 - 10.0 13.0

Petroleumroyalties - 34.0 8.2 8.2

Miscellaneous 2.8 14.7 2e0 2.0

Savi.ngs 126.0 172.5 - -

Foreign constructionloans 2/ 171.0 362.2 493.0 527.0

Equipment Loans - 360.0 - -

National Budget Contributions 1400._8_390.2 7299.5 1066.8

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

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

1/ These estimates are substantiallymore conservativethan -those made by the National Planning Departmentand quoted in para. 2o20*

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

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

COLOMBIA

SIXTH HIGHWAY PROJECT

PAST AND PROJECTEDNATIONAL HI HWAYEXPENDITURES (M

Construction Ihintenance Total

1963 - _ 557e6

1964 - - 616.3

l965 - - 711.4

1966 - - 643.7

1967 - - 873.9

1968 - - 1088.3

1969 711.0 388.0 1099.0 1970 13.178.9 744,O 1922.0 1971 1326.3 4t32.5 1758.8 1972 1427.0 604.8 2031.8

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

Note: The raintenance estimates include provision for equipnent in the year acquired, The construction expenditure forecasts are based on very tentative timing of projects. Planned expenditure on feeder roads is not included. Expenditure is shown in current prices and therefore actual historical growth is overstated.

April 28, 1970 COLOMBIA:SIXTH HIGHWAYPROJECT

MINISTRY OF PUiBLIC 'ORKS - HIGHWAYDESIGN STANDARDS

LIGHT TRAFFIC MEDIUMTRAFFIC 1D&VYTRAFC

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

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

ER1RAIN H 1! I R I-F H R F H | R F H N R [F H/M R [ - K 100 7 8 ______~~~~~~~~~~~~~~~~~~~~~~~~~~~~~w J 0~~~~~~~6o 06 80 100 _ESIGN_Kph SPEED W 501 6C 70 60 5OT60 70 601 80 100 40. 80 100 /80 /100 /120 /80 /100 /120 WIdwrTOF PAVXTP _ 6.00 6.00 7.00 7.00 7.00 2 of 7.00 050 1,00 1.00 1.50 1.00 1. 1.00 1.50 1.001 .1.50 1.5012.00 12-50 2.50 1 2.50 |3.° 1.00 1.00 1.50

3HDULDR RIGHT O5 1.00 1.00 l.5C l.co 1.O L.00 1.50 1.00 1.00 1.50 2.00 1.50 1.50 12.00 ?2,5 2.50 2.5C 3.00 2-5o 3.00 3.00 IOTALWIDTH m 7 8 8 9 8 8 8 9 9 9 10 11 10 10 U 12 12 12 13 10.50 11 11.50

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

M_ I ______/2 0 , 50 /75II0 urINIMU)RA.DIUS OF CURVES m 50 80 120 17o 50 80 120 1'C 50- 120 250 45 I5 120 250 1 '120 2501 /50 95 %

[,ON-PASSING SIGHT DISTANCE m 50 70 80 100 5C 70 8c 100 50 80 120 io 50o 80| 120 180 /120 /180 /250 /120 I ....12512& 350 50 0

- /800 _ 0SSINGSIGHT DISTANCE - 20C J45O 3 3530 450 200 350 500 600 200 3501 500 I600 ,500 /600| fIDYrOF BRIDES (< 10 m -| Same as total width

|JlWdEElCUlRlKS >_ 111_m 8 9 9 12 Of 9

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

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

:3 - Rolling

F - Flt COWNBIA

Sixth Hihway Project

Vehicle Registration 1958-1967

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

1958 67,761 12,283 ll,414 25,092 4,991 36,949 895 159,385 1959 68,808 13,358 12,375 27,578 5,155 39,275 927 167,476

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

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

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

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

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

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

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

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

Sourgei Departamento Administrativo Nacional de Estadistica. (DANE) December 1969. Table 10

COLOMBIA- SIXTH HIGHWAYPROJECT

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

Annual Anmal Gasoline % Increase Diesel % Increase

1958 303.5 - 95.0 - 1959 317.7 4.6 99.0 4.2

1960 354.7 u.6 113.5 14.6 1961 399.6 12.6 124.5 9.6

1962 434.5 8.7 134.9 8.3 1963 442.0 1.7 135.5 0.4 1964 460.5 4.1 151.5 u1.8 1965 491.3 6.6 166.0 9.6 1966 527.6 7.3 176.9 6.6 1967 535.0 1.4 166.9 - 5.7 1968 583.8 9.1 190.7 14.2

Average 1958/68 6.6 7.2

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

Source: Colombian Petroleum Information Center, December 1969 COLOMBIA

SIXTH HflHWAYPROJECT - IESIGN STANDARDS

BARRANQUILLABRIDGE EL PAILON-BDENAVENTURAROAD

A. APPROACHRAMPS A. Highway

Design Speed kph 65 Design Speed kph. 100

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

Width of Shoulders m. 3.00 Width of Shoulders:

Maximum Slope % 1.5 km o.946to hm 9.000 m. 3.5 km 9.000 to km 10+400 m. 2.0 Minimum Radius of Curves m. 573 Maximum Grade % 3 Width of Embankment M. 13.30 Minimum Radius of Curves m. 327

Width of Embankment:

kcm0946 to km 2+700 m. 19.2 km 2+700 to km 44300 me. J4.3 km 44p300to km 9+000 m. 19.2 km 9+000 to kh 10400 me. 11.3

B. BRIDGE STRUCTURE B. BRIDGE EL PINAL

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

Width of Sidewalks m. 2.25 Widthof Sidewalks m. 1.0

Total Width m. 12.50 Total Width m. 8.9

MaximnumSlope % 3.0 Mxiimum Slope % 0.0

Design Loading HS20-44 Design Loading HS20-44

Source: INGETEC/TAMS- October 1969 source: INTEGRA - r Gannet Flemming Corddry and Ca.rpenter., December 1969 C 0 L 0 H B I A - SIXIE HIGRWAYPROJECT

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

CONST. COST / ADT RATE OF CGNSTR. COST ADT RATE OF KM PAVEMENT SHOULDER - 1970 RETURN Km PAVESMENT SSDULDER 1970 REMTUR P R O J E C T a Type a (Hi-iion Peaos) P R O J E C T x Type * (Hllion Peso-) December 1969 Dcember 1969

GROUP 1 GROUP 8

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

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

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

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

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

ALTAHIRA - PITALITI 47 5 RH 15.2 240 14.3 GROUP 9

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

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

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

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

SUB-TOTAL 230 57.9 GROUP 10

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

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

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

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

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

SUB-TOTAL 43 21.5 SUB-TOTAL 263 157.5

GROUP 4 GROUP 11

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

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

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

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

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

GROUP S SUB-TOTAL 291 157.3

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

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

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

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

GROUP 6 SUB-TOTAL 115 47.7

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

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

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

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

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

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

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

SUB-TOTAL 93 55.7

NOTES: ST- Surfa.e Tre.tmsent AC- Asphalt Concrete RM- Road Mix

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

.Indicates Rate or Return oser 20 year lire.

-ere e orild-~ widths -ot specified, exist'o.g variable shoulder widths .ill be used. April 277, 1970 Table 13

COLOMBIA

SIXTH HIGHWAYPROJECT

1LGHTE VEHICLE OPERATINGCOST ON GOCWPAVED ROADOVER LEVEL TERRAIN

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

Li ,ht Vehicles

Small automobile 10% o.68 0.068

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

Large automobile (private) 20% 0.95 0.190

Jeep, station wagon, Pick-up or

Panel Truck 40% 1.22 0.488

100% $1.031

Average cost of light vehicles Ps$1.023/n.

Uleavy Vehicles

Trucks 4-6 metric tons 10% 1.36 0.136

6-8 metric tons 25% 1.56 0.390

8-1-0 metric tons 35% 2.11 0.739

10, or more metric tons 5% 2.46 0.123

Large bus 25% 1.56 0.390

100% 1.778

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

Sources INGETEC/TAMS, Paving Program September 1969. Table iL

COLOMBIA

SIXTH HIGHWAYPROJECT

OPERATINGCOST COEFFICIENTS FOR DIFFERENT HIGHWAYCONDITIONS

1. TYPE OF SURFACE Coefficient

Pavement Good condition 1.00

Deteriorated range 1.05-1.50

Gravel Average condition 1.30

Maximum range 1.10-1.5o

2. GEOMETRIC DESIGN STANDARD6

Standard Normal Speed Roadbed Mlnimum Maximum Coefficients Light vehicle Width Radius Grade Kh m m %

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

Intermediate 40 - 60 6+ 40 7 - 8 1.10

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

3. GRADES

COEFFICIENTS Grade Percentargeof Heavy Vehicles

0 20 40 60 80 JOO

0 - 3% 1.00 1.00 1.00 1.00 1.00 1.00

3 - 5% 1.02 1.04 1.07 1.10 1.12 1.15

5 - 7% 1.06 1.13 1.20 1.26 1.33 1.40

7 - 9% 1.12 1.25 1.37 1.50 1.62 1.75

Source: INGETEC/TAMS,Paving Program September 1969.