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F I- -/>#Fl Document of the Worldbank / ,v -I) f I- -/>#fL Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized MICROFICHE COPY ReportNo. 10264-BAR Report No. 10264-BAR Type: (SAR) MATES, A / X38648 / I5132/ LA3IE STAFF APPRAISAL REPORT Public Disclosure Authorized BARBADOS SECOND ROAD MAINTENANCE AND REHABILITATION PROJECT MAY 29, 1992 Public Disclosure Authorized Public Disclosure Authorized Department III Infrastructure Operations Division Latin America and the Caribbean Region This documenthas a restricteddistributior and may be used by recipientsonly in the performanceof their officialduties. Its contentsmay not otherwisebe disclosedwithout World dank authorization. CURRENCY EQUIVALENTS Currency Unit - Barbados Dollar $B1.00 - US$0.50 US$1.00 - $B2.00 WEIGHTS AND MEASURES 1U$ gallon - '3.875liters 1 mile - 1.613 km 1 pound - 0.453 kg ABBREVIATIONS BPA Barbados Port Authority GOB Government of Barbados EMS Equipment Management System GOB Government of Barbados HMMS Highway MaintenanceManagement System IFAS Integrated Financial Accounting System MCW Ministry of Works, Communicationsand Transportation MMU MaintenanceManagement Unit PU Planning Unit TC Technical Committee TCD Technical Department TEU Twenty-Foot Equivalent Unit TLF Transport Levy Fund TRB Transport Board FISCAL YEAR April 1 - March 31 FOR OMCIuL USE ONLY SECONDROAD MAINTENANCEAND REHABILITATIONPROJECT STAPFAPPRAISAL REPORT TABLEOF COKTENTS PateNo. I LOAN AND PROJECTSUIa ARY . 1 II* THESECTOR o oo#&e*3 A. General .. .. .a. .9 . .#. 3. B. InstitutionalSetup ...... .......... .......... 4 C. Ports ................................. 4 D. Airport................................. 5 E. Road Transport ........................ 5 (a) The Network ...... ..... .......... 5 (b) RoadAdministration .................... 5 (c) Road Maintenance ........ 6 (d) Road ConstructionIndustry . 8 (e) VehicleFleet . 9 (f) Axle Load Regulation * 9 9 (g) TruckingIndustry a . ... 9 (h) PassengerTransport and the Role of the TransportBoard 9 (i) HighwayPlanning . o . o * * * . 11 (j) Fuel Pricesand Other User Charges . 12 (k) HighwayFinancing . .. ....... o ... 13 III. PAST BAIKEXPERIENCEIN TE SECTOR .. ................ 13 IV* THEPROJECT . .. .. .o* . ..... ... 14 A. Justification. o....... *. ....... 14 B. ProjectObjectives . 15 C. ProjectDescription .o... ....... .... ..... 16 (a) General . , .. ... 16 (b) Road Rehabilitation 16 (c) Road Safety . 16 (d) OverlayProgram .e. a * v....v.. 17 (e) Bridgeand CulvertRehabilitation . 17 (f) Pilot Programs RoutineMaintenance by Contract . * s18 (g) 13quipment .18 ........... I (h) InstitutionalImprovement ................ 19 This reportis based on the findingsof an appraisalmission which visited Barbadosin February1992. The missionconsisted of Messrs.Amnon Mates,Task Manager and Economist,Jos6 Luis Irigoyen,Engineer, and Richard Scurfield, Transportation Expert. Peer review was provided by Messrs. John Flora and Ernesto Henriod. The report was prepared under the supervision of Mr. Graham Smith, Division Chief, and Mr. Yoshiaki Abe, Director;Ms. Silvia Delgado assistedin its production. This document has a restricted distribution and may be used by recipients only in the performance of their officialduties. Its contentsmay not otherwisebe disclosedwithout World Bank authorization. (it) TABLE OP CONTENTS (cont's) Page No. Ml General ... 19 (ii) Technical Asoistance . 19 gil) Studies . o 20 (iv) Training . v.. .............. 21 F. Project Costs and Financing . 22 G. Economic Evaluation . 24 (a) Road Rehabilitation ................... 24 (b) OverlayProgram ..... .. 9 925 (c) Safety Program ....... ............... 26 V* PROJECT INPLMEkNTATION. .. .................... 26 A. Project Execution ..................... 26 (a) General . , . 26 (b) Project Coordination .' .... ......... ... 26 (c) RoadcMaintenance ...... ..9 9 ... 27 B. Procuremont . ...... 27 C- Diabursementa .. .. 9 9 28 E. Auditlto . 29 E. Monitorongm Impa . 30 Fo EnvironmentalImpact . 000000031 G. Project Riak .o. - . o . a 31 VI. AGREEMENTS REACHED AND RECOMMENDATION . 32 Recomnendation . 34 BARBADOS SECOND ROAD MAINTENANCE AND REHABILITATIONPROJECT I. LOAN AND PROJECT SUMIARY Borrowert Government of Barbados (GOB). Executing Agency: Ministry of Public Works, Communications and Transportation (MCW). Amount: US$21.2 million aquivalent. Terms: 15 years, with 5 years of grace, at the standard variable interest rate. Project Objectives: The objectives of the proposed project are to: (a) install and implement sound maintenance policies and procedures on the road network; (b) preserve the capital base of road infrastructure within the constraintson capital and current expenditures; (c) reduce investmentcosts by transferringall capital works to the private sector and explore the relative merits of private sector participation in carrying out road maintenance activities; (d) improve road safety; and (e) help the Government in its efforts to privatize passenger transport services. Project Description: The project finances a share of MCW's Five-Year (1992/93-1996/97) Investment Plan which was appraised jointly by the Bank and the CDB and is financed in parallel by both organizations. The Bank project will finance: (a) rehabilitation of two sectione of Highway 6; (b) a safety program consistingof improvementto five road intersections; (c) an overlay program involving about 160 km of high-priority roads; (d) rehabilitation of culverts and bridges; (e) a pilot program of routine road maintenance by contract; (f) equipment acquisition and rehabilitation in line with the requirementsof the Four-YearRoad Maintenance Plan; and (g) an institutionalimprovement program consistingof: technical assistancefor road maintenanceand workshop operations;training and retraining programs; and studies to rationalize the road network and privatize public bus transport services. Project Benefitss The projectwill result in substantialupgrading of about 30S of the primary and secondary road networks and a significant reduction in transport cost, traffic congestion and accidents. The project will assist in the transfer of capital works and periodic road maintenance to private contractors, increase efficiency of road maintenance operations and improve equipment availability. The project will allow the Government to carry out vital capital and periodic maintenance works under drastically lower budgetary allocations agreed upon as part of the IMF 1992 stand-byagreement. In addition, the project will lead to an action plan to privatize passenger transport services and reduce to a minimum Government subsidies to the publicly-owned bus company (Transport Board). -2- Project Risks: The project carries little risk from the technical point of view. However, the agreed road maintenance and investment programs represent the minimum levels needed to preserve the road network; any further budget reductionswill endanger the level of service of the road iafrastructure. We expect that the agreementwith the IMF will make further budgetary cuts unnecessary. Aloo, political factors could deter the Governmentfrom proceedingwith privatizationof passenger transportservices which are currently provided by the publicly-owned bus company. The project is designed so that overlay works FY94/95 and beyond will not proceed until there is satisfactory progress on this privatizationprogram. Local Foreign Total Prolect Cost: ---------------(US$ million)-------------- (a) Civil Works: Rehabilitation 1.1 1.3 2.4 Safety 0.9 1.2 2.1 overlay 5.3 9.9 15.2 Bridges & Culverts 0.2 0.2 0.4 Land Acquisition 1.5 - 1.5 Maint. by contract 0.3 0.4 0.7 Subtotal 9.3 13.0 22.3 (b) Equipment 0.1 2.5 2.6 (c) Technical Assistance, 0.3 1.7 2.0 Studies and Training (d) Contingencies 2.3 4.0 6.3 Total 12.0 21.2 33.2 Financina Plan: IBRD Proiect CDB Proiect Total Proaram Government 12.0 4.0 16.0 IBRD/CDB 21.2 _9.6 30.8 Total 33.2 13.6 46.8 Estimated Disbursements: --------------Bank Fiscal Year--------------- 1993 1994 1995 1996 1997 ----------------(US$ million)---------------- Annual 2.7 6.5 6.9 3.5 1.6 Cumulative 2.7 9.2 16.1 19.6 21.2 Estimated Economic Return: 35Z-average for all project components. II. TAE SECTOR A. General 2.1 Barbados is a relatively stiallisland with a population of 244,000 and a total area of 430 square kilometers. It enjoy., however, an extensive paved road network of 1,550 km (Table 1). The paved road density, at 3.6 km per square kilometers, is high in comparison with other islands of a similar size (Grenada- 1.5; St. Vincent - 1.5; St. Lucia - 1.1). The relatively flat terrain (except for the northeastern part of the island) and the higher standard of living (GDP per capita in Barbados is more than three times higher than the other islands mentioned above) contribute to the incrffasedroad network size. Nevertheless,maintenance of some low-traffictertiary roads could be minimized without affecting the efficiency of the system. 2.2 Barbados has spent substantialresources on developing its elaborate road network. The level of road investmentspeaked in FY86/87 at about $B43 million (Table 2); it has declined in subsequentyears reflecting the completion of major projects (the northern access road and the airport road). Total road investment as a percentage of public sector investment reached a high of 26% in FY86/87, but declined to a more reaeonable 16-18S in recent years (Table 3). In terms of current expenditures, the road sector accounted for 6-9S of public sector expendituressince 1984 (Table 3). 2.3 In addition to roadst the transport system in Barbados
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