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World Bank Document FILE COPY DOCUMENTOF INTERNATIONALBANK FOR RECONSTRUCTIONAND DEVELOPMENT INTERNATIONALDEVELOPMENT ASSOCIATION Public Disclosure Authorized Not For PublicUse Report No. 1 18a-JM Public Disclosure Authorized JAMAICA APPRAISAL OF A ROAD IMPROVEMENTAND MAINTENANCEPROJECT Public Disclosure Authorized May 8, 1973 Public Disclosure Authorized Latin America and the Caribbean Projects Department | Thisreport was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completenes of the report. Currency Equivalents Currency Unit = Jamaican dollar (J$) US$1.00 - J$ 0.91 J$ 1 = US$ 1.10 J$ 1 million = US$ 1.1 million Fiscal Year April 1 to March 31 System of Weights and Measures: British Metric British/US Equivalent 1 feet (ft) = 0.305 meter (m) 1 mile (mi) - 1.609 kilometers (km) 1 square mile (mi2) = 2.589 square kilometers (km2) 1 pound (lb) = 0.454 kilogram (kg) Abbreviationsand AcronYms ADT - Average Daily Traffic CIDA - Canadian InternationalDevelopment Agency DC - Directorateof Construction DEMS - Directorateof Electrical and Mechanical Services DM - Directorateof Maintenance DMP - Directorate of Major-Projects DTS - Directorate of Technical Services GDP - Gross Domestic Product GNP - Gross National Product JRC - Jamaica Railways Corporation LVI - Lamarre Valois International Ltd., Consulting Engineers MDW - Ministry of Works NEC - National Economic Council TPOS - T.P. O'Sullivan and Partners, ConsultingEngineers UNDP - United Nations Development Program USAID - United States Agency for International Development JAMAICA APPRAISAL OF A ROAD IMPROVEMENTAND MAINITENANCEPROJECT TABLE OF CONTLNTS Page No. SUMIRARYAND CONCLUSIONS. 1. INTRODUCTION .............................................. 2. B6ACKGROUND .. A. The Country and its Lconom,ly. B. The Transport Sector .................................. 3 C. Transport Policy and Coordination ........... 5 3. THE ROAD SYSTEM AEND ROAD TRANSPORT ..... .................. 6 A. The Road Network and its Traffic .. ...................6 B. Administration: The Ministry of tWorks ..... .......... 8 C. Road Planning and Financing .. 8..................8 D. Engineering and Construction ........................10 E. Mlaintenance ........................ 10 4. TIIE PROJECT .. .. ............ 12 A. Project Description .. 12 B. Road Improvement and Maintenance . 13 C. Provision of Road Maintenance and Workshop Equipment 14 D. Restructuring of Directorate of Maintenance; Improvement of Staffing and Procedures. 14 E. Technical Assistance .. 16 F. Cost Estimates .. 17 G. Financing and Disbursement . .18 H. Execution... 1 5. ECONOMIC EVALUATION ....................................... 20 A. General ....................... ....................... 20 B. Asphaltic Overlay .................................... 20 C. Asphaltic Resealing ................ .. ................ 23 D. Road Maintenance and Workshop Equipment .............. 23 6. AGREEMENTS REACHED AND RECOMMENDATION ..................... 24 This Appraisal Report has been prepared by Mr. W. Sikorski (Engineer) and Miss I. Pastor (Economist) and has been edited by Miss V. Foster. Table of Contents - Continued TABLES 1. Road Network (1972) 2 . Lxpenditure on Roads 1965-1973 3. Road User Charges 4. Details of Proposed Asphaltic Overlay Work 5. List of New Equipment and Estimate of Cost 6. Technical Assistance to be Provided by the Consultants 1973-1Y973 7. Project Cost Estimates ,. Estimated Schedule of Disbursements 9. lnitial Traffic Levels and Growth 10. Typical Vehicle Operating Costs 11. Interpolated Values of Vehicle Operating Costs for Road Classes Project Roads 12, R?ates of Return and Sensitivity Analysis 13. Economic Evaluation of AsphialticResealing ANN2EX 1. Road Traffic Law anzn Regulations ChARTS 1. Structure of the tinistry of iNorlks 2. Structure of the Directorate of laintenance :.AP Jarilaic. -- Road Improvement and Maintenance Project, IBRD 10337 JAMAICA APPRAISAL OF A ROAD IMPROVEMIENTAND MAINTENANCEPROJECT SUMMARY AND CONCLUSIONS i. The road system in Jamaica is generally adequate in extent; in recent years, however, maintenance has not kept pace with the needs of the system, particularlythose of the paved roads. Moreover, some of the paved roads are reaching the point whiere,with increasing traffic, strengthening, is becoming necessary. ii. Road maintenanceand the institution-responsiblefor it have been studied in recent years, first in 1968 as part of a countrywide transporta- tion survey carried out by the Canadian consultants Lamarre Valois Interna- tional Ltd. (LVI), with financing by the Canadian InternationalDevelopment Agency (CIDA), and then in 1972 by the UK consultantsT.P. O'Sullivan and Partners (TPOS) in a study financed by the United Nations Development Pro- gram (UNDP), for which the Bank was executing agency. The CIDA-financed study recommended,inter alia, a major resurfacingprogram for paved roads to prevent further deteriorationof pavements, and improvement in the struc- ture and procedures of the road maintenance organization. The UNDP-financed study went a step further, recommendingspecific road improvement and mainte- nance, and made definite suggestionsfor improvementof the maintenance or- ganization. iii. The proposed project is based largely on the results of this latter study and has, therefore, a twofold thrust - physical improvement of the road network, and organizationalimprovement of the road maintenance organ- ization. As regards road improvement,the project envisages strengthening of about 440 miles of major roads with asphaltic overlay and resealing of a further 250 miles on which the pavements, although not yet overstressed, would deteriorate and require costly rehabilitationwithout this treatment. No major improvementof the geometric features of the road network are en- visaged, but particularlybad features, such as very sharp bends and dis- torted cross-sectionprofiles, would be improved in conjunctionwith these works. iv. Improvement of the maintenance organization envisaged comprises (a) a change in line management structure which would have the effect of introducing professionalengineers into the maintenance organization; (b) introductionof rational costing and better planning of maintenance optra- tions; and (c) a modest increase in the management staff of the organiza- tion. Also under this heading, thieproject would provide equipment for routine maintenance operations and a small quantity of tools for the work- shops which service such equipment. A substantial provision for technical assistance is included to help implement all aspects of the project. - 2ii - v. Execution would be the responsibility of the Ministry of Works (MOW) and would extend over a period of about five years. This period is determinedi largely by the time required for the civil works; these, in turn, have been spread out to reduce the load on budgetary funds to an acceptable leve' and to help ensure a more even workload on the resources of the iMinistryand the contracting industry. vi. The asphaltic overlay would be procured by international competi- tive bidding, following the Bank's guidelines, in two tranches of about US$3 million each. There would be a number of contracts in each tranche, but the work would be packaged, and bidders would have the opportunity to bid for any part or for thiewhole package. The asphaltic resealing would be bid in a similar manner, but, since the work is rather scattered and small scale, it would probably be unattractive to firms not already established in the couni- try; this work would therefore be advertised only in Jamaica. The road main- tenance equipment would be procured by international competitive bidding, following international advertising. vii. The project would benefit all parts of the cotuntry. The asphaltic overlay would be applied primarily to the circumferential road and a few major cross-country routes - these constitute the most heavily trafficked roads in the country. The resealing work and the improvement of day-to-day maintenance would have its effect primarily on the secondary road network. Not all of the benefits are readily quantifiable, and the economic evalua- tion concentrates on the proposed investment in asphaltic overlay (represent- ing over 40,% of project costs). For the overlav, the econoraic return is in excess of 50%; even if significant factors in the evaluation are varied to represent more pessimistic values, the economic return is still acceptable. For the resealing, on the assumption that failure would take place in four years' time if the pavements were not resealed in the near future, the economic return on the proposed resealing is conservatively estimated at about 19%. For the equipment included in the project, a very modest re- duction (of the order of a few percent) in vehicle operating costs result- ing from the use of this equipment would be sufficient to provide an economic return of 10% on the investment in equipment. Together these three items -- overlay, resealing and provision of equipment -- account for over 90% of project cost. viii. The project is estimated to cost US$17.3 million equivalent, with a foreign exchange component of US$9.3 million. The project would provide a satisfactory basis for a Bank loan to cover this foreign exchange component for a term of 15 years, including a five-year period of grace. JAMAICA APPRAISAL OF A ROAD IMPROVEMENTAND MTAINTENANCEPROJECT 1. INTRODUCTIGN 1.01 The Government
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