Document of The World Bank Public Disclosure Authorized
Report No. 16153-RO
Public Disclosure Authorized STAFF APPRAISAL REPORT
ROMANIA
Second Roads Project
May 8, 1997 Public Disclosure Authorized Public Disclosure Authorized
Infrastructure Operations Division Country Department I Europe and Central Asia Region CURRENCY EOUIVALENTS (as of April 30, 1997)
Currency Unit = Leu US$1 = 7,095 Lei 1 Leu = US$0.00014
AVERAGE EXCHANGE RATES Leu = US$1
1995 1996 January 1997 February 1997 March 1997 2,033 3,084 5,146 6,896 7,236
WEIGHTS AND MEASURES Metric System
ABBREVIATIONS AND ACRONYMS
ARL - Enterprise for Road Repairs and Works CEE - Central and East European EBRD - European Bank for Reconstruction and Development EIB - European Investment Bank EU - European Union HDM - Highway Design Model ICRS - Interministerial Committee for Road Safety IPTANA - Design Institute for Road, Water and Air Transport IRI - International Roughness Index MOT - Ministry of Transport NAR - National Administration of Roads NMT - Non-motorized transport PHARE - Fund for Assistance to Central and European Countries RA - Regie Autonome RAR - Romania Automobile Registry RD - Regional Directorate (of NAR) SICRS - Secretariat of the Interministerial Committee on Road Safety TERN - European Road Network VPD - Vehicles per day
ROMANIA - FISCAL YEAR January 1 - December 31
Vice President: Johannes Linn, ECAVP Director: Kenneth G. Lay, ECIDR Division Chief: Ricardo Halperin, ECIIN Staff:: Charles Jeremy Lane (Senior Highway Engineer; Task Manager); Jacques Yenny (Principal Transport Economist); Sven-Ake Blomberg (Traffic Safety Engineer); Anca Dumitrescu (Project Officer, Resident Mission); Sudipto Sarkar, Environment Specialist Peer Reviewers were: E. Vasur (EC2ET) and S. Lundebye (SAIIN) STAFFAPPRAISAL REPORT
ROMANIA
SecondRoads Project
CONTENTS
LOAN AND PROJECT SUMMARY......
I. THE TRANSPORTSECTOR.1
A. The Transport System .1 ...... B. Traffic ...... 1 C. Investments.. 2 D. Institutions...... 2 E. SectoralIssues ...... 3 F. Sector Strategy ...... 3 G. Previous Bank Experience in the Sector .4 H. Role of the Bank and Lending Strategy .5
II. THE HIGHWAYSECTOR ...... 6
A. Infrastructure...... 6 B. Road Transport ...... 10 C. EnvironmentalAspects ...... 12
m. THE PROJECT .. 13
A. Project Objectives...... 13 B. Project Description...... 13 C. Engineeringand Status of Project Preparation .15 D. Cost Estimates ...... 16 E. Project Financing ...... 16 F. Implementationand Monitoring...... 17 G. Procurement ...... 18 H. Disbursements ...... 18 I. Project Supervision...... 19 J. EnvironmentalImpact .19 K. Project Accountsand Auditing...... 20 L. Poverty Impact ...... 20
IV. ECONOMIC EVALUATION.21
A. Framework.21 B. Cost-BenefitAnalysis ...... 21 C. Sensitivityand Risk ...... 24
V. AGREEMENTSAND RECOMMENDATIONS . .25 CONTENTS (Cont'd)
TABLES Table 1.1 - Freight Traffic by Mode of Transport Table 1.2 - Passenger Traffic by Mode of Transport Table 1.3 - Transport Sector Investment Table 2.1 - Road User Charges: Fuel Tax Revenues Table 2.2 - Road Sector Revenuesand Expenditures, 1994-2003 Table 3.1 - World Bank Financed Road Sections Table 3.2 - NAR's EquipmentFleet by Type and Age Table 3.3 - List of Equipmentto be Procured under the Project Table 3.4 - Project Cost Estimate Table 3.5 - Summary of Proposed ProcurementArrangements Table 3.6 - EstimatedSchedule of Disbursement
CHARTS
Chart 1 - NAR's Organization Chart Chart 2 - NAR's Organization Chart
ANNEXES
Annex 1 Project ManagementUnit: Terms of Reference Annex 2 ProcurementSchedule for IBRD Financed Items Annex 3 Traffic Safety Annex 4 MonitorableIndicators Annex 5 TechnicalAssistance for Traffic Safety: Terms of Reference Annex 6 Project ImplementationPlan Annex 7 EconomicAnalysis of Road Sectionsto be Rehabilitated Annex 8 Documentsin the Project File
MAP IBRD No. 27751 ROMANIA
SECONDROADS PROJECTS
Loan and Project Summary
Borrower: Romania
Beneficiariesand NationalAdministration of Roads (NAR); RomaniaAutomobile Registry ImplementingAgencies: (RAR); Ministry of Transport Secretariatto the InterministerialCommittee for Traffic Safety (MOT/SICRS);Ministry of Education; Traffic Police Department.
Amount: US$150 million.
Terms: 20 years including5 years grace at the standard interest rate for LIBOR- based US dollar single currency loans.
CommitmentFee: 0.75% of the undisbursedloan balances,beginning 60 days after signing, less any waiver.
OnlendingTerms: Same as Bank terms.
Project Objectives: a) improve traffic safety and the fitness of the vehicle fleet;
b) continuehelping Romania to meet the changing pattern of demand for land transport infrastructure;
c) improve the managementand performanceof NAR;
d) assist the Romaniancivil works constructionindustry in its transition to a market economy; and
e) promote the reductionof lead in petrol.
Project Description: The project will consist of 5 components:
a) a program of about 1,000 km of road and bridge rehabilitationto include overlayingor reconstructionon the existing alignment, some widening, constructionof hard shoulders and minor geometric improvements;
b) a traffic safety program (TSP) involvingcomponents in education, engineering, (roads and vehicles) and enforcement;
c) a program of institution buildinginvolving computerizationof NAR and the introductionof bridge and pavementmanagement systems; transport planning; continuationof work towards contracting ii out/privatizingof periodic maintenanceand installationof permanent traffic counting and axle load controls;
d) a program of assistanceto the road and bridge constructionindustry, includingestablishment of a secretariat; training programs and financingof equipment; and
e) preparation of an Action Plan for the reduction of lead in petrol.
Project Benefits and Risks: The project supports the rehabilitationof infrastructure,harmonization of standards with the EU and environmentalimprovements which have been identified as priority concerns in the Bank's Country AssistanceStrategy (CAS). The project also will raise the efficiencyof public sector management,reduce the state role in the economyby contracting out constructionand maintenanceactivities previously handled by force account. The project benefits are in terms of reduced transport cost and reduced accident costs which are expectedto be widely dispersed throughout the economy. The weighted average ERRs for road rehabilitationis 48%. For the road safety componentERRs range from 40% to over 90%.
There are few risks which would affectthe economicrates of return of the project. For the road rehabilitationcomponent, the main one would be that traffic growth would be less than expectedand benefits would thus be lower than estimated. For the road safety component,the risk is that the reduction of accidentswill be less than expected,but the savings of even minor reductionin accidents are so large in comparisonto the level of investmentthat the ERR will remain high.
The more significantrisks are of a broader institutionalnature:
a) insufficientcounterpart funds. The risk has been reduced with the recent approval of the Road Fund Law which will provide NAR with funds to complementthe budget allocation. In addition the Governmenthas undertakenthat the project will be given priority over any other investmentsto be undertakenby NAR, however a residual risk does remain given Romania's history of fiscal difficulties, and in anticipationof potential problems, annual consultationson budget allocationsand a mid-term review are provided under the project;
b) strained implementationcapacity in the earlier stages of the project, while the Transport Project is still under implementation. To reduce this risk, technicalassistance to the PMU is provided in the project;
c) delays in implementingthe agreed strategy on commercializationof periodic maintenanceoperations. NAR has already started the iii
process in 3 of its 7 regions and there is specific assistance in the project to deepen and extend the process; and
d) implementationof the traffic safety componentis dispersedamong many different agenciesnot used to working together and coordinationmay be difficult. The project envisagesdrawing technical assistancefrom an establishedEuropean traffic safety organization with links to its own analogousagencies.
Economic Rate of Return: About 48 %
Poverty Category: N/A
Map: IBRD 27751
ProjectID Number: RO-PA-39250
I. THE TRANSPORTSECTOR
A. The TransportSystem
1.1 Romania is one of the largest of the former centrally planned economiesin the Central and East European (CEE) Region with a land area of 237,000 square km and a populationof 23 million, second only to Poland. Per capita income in 1995 was estimated at about US$1,450. The country has a wide range of natural resources, includinga fertile agriculturalbase, depositsof coal, lignite, oil, natural gas and other minerals. Long a major food producer, Romania was a large exporter of agriculturalproducts until the early eighties.
1.2 The transport system has relied primarily on the railways, which have a well developed network of 11,000 km, of which 36% is electrifiedand 26% is double track. The road network totals 73,000 km, of which 20% are nationalroads carrying 60% of the traffic. Road density, with regard to both population and land area, is the lowest among all CEE countries. The Danube offers a navigable distance of 1,075 km in Romaniaand the Danube-BlackSea Canal (68 km) was opened to traffic in 1984. Ninety percent of foreign trade is handled through the port of Constanza on the Black sea. There are five major river ports on the Danube, the largest of which is Galati, accessibleto ocean-goingvessels up to 15,000 tons. There are 17 airports of which 4 are international. The transport sector contributes4.8% of the GDP and accountsfor 5% of the country's employment.
B. Traffic
1.3 Traffic on all modes has been adversely affectedby the large downturn in the economy, compoundedby the restructuringof the economyaway from heavy industry which was traditionallya large user of transport. Since 1990, GDP declined by nearly 30%, industrial output declinedby nearly 52%, exports fell by nearly 55%, real wages declinedby about 30%, investmentby nearly 60%, and unemploymentreached 10% of the labor force by end-1995from near zero in 1989. The share of industry in GDP declinedto 40% from 54% in 1989, and that of agriculture has risen to about 24% from 14% in the 1980s, while trading activitieshave almost doubled since 1989. Modest growth was recorded in 1994 and in 1995.
1.4 As in other centrally planned economies,Romania's transport sector has been heavily rail oriented. In 1960, rail accountedfor over 80% of freight traffic and over 70% of passenger traffic (Tables 1.1 and 1.2). While the rail share has gone down since then, in 1989 rail still accountedfor almost 70% of freight and over 40% of passengertraffic. The high share of rail freight was the result of regulation forcing all transport above 50 km to the railways; this regulation has now been abolished. Rail freight reached 300 million tons and 80 billion ton-km in the late 80s, but has fallen dramaticallysince then. In 1995, it was down to less one third of its 1989 level at 27 billion ton-km. Passenger traffic held up better, going down to 45% of its earlier level.
1.5 Road traffic grew rapidly in the 70s but stagnated in the 80s as it was suppressedby physical control and regulation. Car traffic increaseddramatically in 1990, but fell back thereafter as fuel prices were adjusted to reflect world market prices. Truck traffic has been less buoyant due to the downturn in the economy, but has been affected less than rail traffic. There is virtually no intercity bus service at this time and railways remain the essential long distance passengercarrier. 2
Non-motorizedtransport (NMT) is almost totally absent in cities, but both the bicycles and horse drawn vehicles are significantin, and adjacentto the linear villages. Both classes of NMT will be consideredin a traffic safety pilot study under the project (Annex 3).
1.6 Traffic through Constantaport was around 60 million tons p.a. in the late 80s, but is also down by one third since then. Of the earlier traffic, about 60% was liquid bulk and another 30% dry bulk, leaving only about 5 million tons of general cargo. Container traffic was small but has increased rapidly since 1989 as Romania's markets are diversifying. Inland water traffic is insignificantat less than 4% of total land traffic. On the Danube-BlackSea Canal, traffic reached 12.5 million tons in 1989, well below the forecastsof 75 million tons made in 1979 before construction. Traffic in 1990 had fallen to some 6 million tons but has begun to grow again with the lifting of the embargo on Serbia. Maritime traffic carried by the Romanianfleet quadrupledin the 70s from 4 to 16 million tons p.a. and more than doubled again to 36 million tons in 1989. It has since fallen to less than 4 million tons.
C. Investments
1.7 Investments in the transport sector have been around 10% of total public investments, substantiallybelow the level in market economies. Until the late 70s, railways received the bulk of the investmentsin the sector. Later, the balance shifted toward water transport (maritime, river and canals) with the constructionof the new Constanzaport, the Danube-BlackSea Canal and the Bucharest-DanubeCanal (now abandoned)and a major increase in the maritime fleet. In the 80s, total water transport investmentsabsorbed well over 50% of total transport investments,while rail received about 27%. By comparison, investmentsin road infrastructuredecreased from 9% in the late 70s to less than 5% in the 80s (Table 1.3). In the 80s, constructionstarted on the Bucharest metro and, between 1986and 1990, this absorbedabout twice the amounts invested in the entire road infrastructureof Romania. In recent years, investmentsin the sector have come to a virtual halt as a result of the Government's efforts to reduce its budget deficit. For instance, in 1992, investmentfor the whole sector was US$35 million, only allowingfor urgent capital repairs and periodic maintenanceand no new investments. Transport sector capital investmentsincreased to around US$75 million in both 1993 and 1994and to US$130 million in 1995 as a result of the European InvestmentBank (EIB)/EuropeanBank for Reconstructionand Development(EBRD) Transport Project. The 1996 budget was around US$110 million, still a very low level at 0.3% of GDP.
D. Institutions
1.8 In 1990 and 1991, major changes took place in the transport institutions. The former Ministry of Transport and Public Works was split into two separate Ministries. The Ministry of Transport (MOT) was reorganizedto concentrateon policy making and regulation functions rather then being an operator of transport means. The railways, highways and ports became autonomous units or "Regie Autonome" (RA), while road transport departments, constructiondepartments and design or research institutesbecame respectivelytransport companies, contractorand consultant commercialcompanies (CC). The shares of most of these CC are still owned by the state, but privatization has started and some CCs are now partially owned by the private sector. The MOT was reorganizedagain in September 1994 to place even greater emphasis on its policy making and regulatory function, while further limiting its interferencein the running of transport operations, and its staff was reduced from 450 to 350. - 3 -
E. Sectoral Issues
1.9 One of the main difficultieswhen assessingthe justification of new investmentsin the sector is to evaluate the future volume and pattern of transport demand. The shift to a market economy is resulting in less emphasison transport intensiveindustries such as steel, cement and petrochemicalsand more on higher value added light industry such as textiles and agro-industry. The latter will require lower transport volumes and are more likely to use road transport than rail or water transport. Romania's use of energy was also very intensive. The demand for lignite and coal transport may decline as the electric power company, RENEL, switchesto nuclear (the first unit of the Cernavoda power plant is in commercialoperation) and from domestic lignite, which is currently transported by the railway, to imported coal. As energy subsidies are phased out, and industries conserve fuel to reduce operatingcosts, further reductions in coal transport can be expected. Railways are unlikely to recoup much of the lost traffic and will have to concentrateon developing new markets such as internationalfreight and combinedtransport. On the passenger side, the need to increase tariffs in order to reduce subsidiescould moderatetravel demand somewhat. As regards road use by cars, it is expectedthat the growth in motorizationwill continue.
1.10 Investmentsin the transport sector were skewed toward very large projects without regard for economic and financial feasibility. The result is that funds for maintenance,rehabilitation, replacementof life-expiredequipment and modernizationwere scarce. Existing infrastructureand equipmentare obsolete and service availabilityis low. The Bank together with EBRD is introducing the use of economicfeasibility studies as a basis for improvingdecision makingon investments.
1.11 The sector was no exceptionto the general distortions resulting from administrativerather than market drices. Fuel prices are still controlled,but Governmentpolicy is to ensure that they reflect fluctuationsin world markets. Under the 1992 Structural AdjustmentLoan (SAL) agreement was reached that Governmentwould adjust them periodicallyto reflect external prices and exchange rate movements. Road transport prices are free for freight, but still regulated for public passenger transport. Similarly, railways have some flexibilityin setting freight tariffs, but full control remains on passenger tariffs. However, under the recently approved Railway Rehabilitationproject agreementhas been reached on financial targets that will drive the tariff setting process. During 1996 railway tariffs were cumulativelyincreased by 74% (freight) and 99% (passengers)over the December 1995 level. Further significant increases were made in February and in May 1997.
F. Sector Strategy
1.12 The followingprinciples and policies are guiding the action of Governmentin the transport sector:
(a) Equality of treatmentbetween private transport enterprisesand state owned means of transport;
(b) Financial autonomyof transport companies;
(c) Freedom of action by transport companies,in terms of entry, routes, cargoes, tariffs and investments; (d) Free modal choice by transport users; and
(e) Investmentdecisions based on economicanalysis.
Regarding investmentsin the sector, the strategy of the Ministry of Transport is as follows:
(a) Short term: to arrest the technicaland operational deteriorationof the system;
(b) Medium term: to renovatethe existing transport capacitytaking into accountthe patterns of changing demand resulting from free competitionbetween modes; and
(c) Longer term: to modernize and develop the infrastructure, equipmentand vehicles to match the economicand technicallevels of Western Europe.
This strategy is sound and is reflected in this project on the investmentside as well as by the agreementsreached regarding reforms to be introducedin the sector.
G. Previous Bank Experience in the Sector
1.13 The Bank has financedfour projects in the transport sector; two under the previous political regime and two since 1989. The first two were the Danube-BlackSea Canal Project (Loan 1794-RO);US$100 million, January 1980; and the Land Transport Project (Loan 2034-RO); US$125 million, April 1981. More recently we processedthe Transport Project (Loan 3593-RO), US$120 million; April 1993; and the Railway RehabilitationProject (Loan 3976-RO);January 1996 both of which are under implementation. In January 1987, OED issued the PPAR for the first project. The main conclusionwas that, although completionwas 17 months behind schedule, the work was generally good. However traffic did not materializeto the extent expectedand therefore the financial results and economicbenefits were lower than estimated. A main issue raised in the report concerns the role of the Bank. The Bank loan came five years after constructionof the canal had started and mainly supplied finance (about 5% of total cost). It would have been better to participateearlier in the project cycle to have an impact on technicaland economicdecisions before they were made.
1.14 The second project was completed and the loan closed on schedule in May 1987. The Project CompletionReport (PCR) was issued in January 1992. The overall assessmentwas satisfactory. Disbursementswere faster than expectedand the project cost was well below estimates. Economicreturns were lower than expected followingthe downturn in the economysince 1990, but all componentsremain justified. Issues of past irregular procurementpractices were highlightedby the Governmentin its commentaryon the project.
1.15 The ongoing Transport Project (Loan 3593-RO), co-financedwith EBRD, EIB, and the European Union AssistanceProgram for Eastern Europe (EU-PHARE)was prepared rapidly and the cooperationthroughout the project's preparationwas outstanding,with the Bank's commentson project design, concept and implementationfully taken into account. Progress on project execution has been very good and disbursementswhich have reached90% of the loan amount are ahead of schedule. The Railway RehabilitationProject, cofinancedwith EBRD and EU-PHARE, only became effectivein August 1996, so it is still too early to assess its progress, but the quality of cooperationis very satisfactory. - 5 -
1.16 Findings of OED on recently completedhighway projects indicate that project success is enhancedwhen:
- operating agencieshave authority delegatedby line ministries to manage well defined projects and adequatebudget resourcesto carry them out;
- individualproject componentsare of high priority, straight forward and under clear-cut responsibilityof only one agency;
- agencies demonstrateownership of projects;
- projects are closely supervisedand there is a mid-term review; and
- detailed terms of reference are availableearly on for the preparation of complex action plans, especiallywhen many agencies are involved (road safety).
In addition, OED found that efficiencyis improvedby devolving supply of services to the private sector, but privatizationof state owned enterprises is politically difficult and can only be achieved when there is strong commitment.
1.17 These lessons have been taken into account in the design and preparation of this project. The road administration- a regie autonome(see paragraph 2.6) - has full authorityto manage the project and the introductionof the road fund (para. 2.13) will strengthen its financial situation. The selection of about 1,000 km out of 3,000 km analyzed in detail reflect the high priority of the roads to be rehabilitatedunder the project. The short list of roads to be improved was discussedthoroughly within the administrationand with the line ministry and there is a high ownership of the project. We intend to supervise the project closely, includingannual reviews (see para. 2.13). Detailed terms of reference have been prepared and agreed for the preparation of actionplans for road safety and reduction of lead in petrol. The gradual transfer of maintenanceactivities from force accountto contract has started under the Transport Project and will be developedfurther under this project. Enterprises for repairs and works (ARL) will be separatedfrom the administrationand commercializedwith a view to privatizationin the future. Separationhas started with ARL Cluj.
H. Role of the Bank and LendingStrategy
1.18 A revised Country AssistanceStrategy (CAS) is presently being submitted for Board consideration. It focuses on support for a far reachingreform program in line with country priorities, and assigns special importanceto support for EU accessionprograms and to strengthening partnerships with the EU and other external parties. At the same time, the strategy posits a future shift from infrastructure lending. This operationhas been designed with these strategic objectives in mind. Thus it promotes the financial sustainabilityof the sector through the Road Fund (para. 2.13), cements the strong partnershipsthat had been developedunder the ongoingTransport Project by continuingthe close and fruitful collaborationwith EBRD, EIB and EU-Phare (para. 3.12), pursues safety and environmentalimprovements and by funding roads in the European network and utilizing EU standards (para. 3.3) will facilitate EU accession. The ultimategoal is a balanced and cost efficient transport system, that would maximizethe positive externalitiesof providing convenientand economicaccess to transportationservices to the greatest number of people, while minimizingthe negativeexternalities such as the number and severity of accidentsand the impact on the environment. It builds upon the 1993 Transport Project (para. 1.15). - 6 -
II. THE HIGHWAY SECTOR
A. Infrastructure
2.1 Networkand Traffic. Public roads in Romania are classifiedin a three-tier system: national roads, district roads and communalroads. The National Administrationof Roads (NAR) is responsible for the national road network. The district and communalroads are directly under the local administrations,however, NAR provides technicalassistance on standards, project design and budget submissions.
2.2 In 1996, the road network totalled about 73,000 km of which 15,000 km were national roads.
Description ROAD NETWORK*l PAVED GRAVEL EARTH TOTAL km S km km km
National Roads 14,462 98 221 _ 14,683 (of which motorways) (113) 100 (113)
District Roads 18,111 67 7,718 1,138 26,967
CommunalRoads 4,951 16 18,686 7,529 31,166
Total 37,524 26,625 8,667 72,816
(%) 51% 37% 12% 100%
* (Excludingstreet networks)
2.3 In the past, roads and road transport were neglected as emphasiswas placed on rail transport. As a result, the conditionof the networkdeteriorated, particularly in the 1980s. It is estimated that about one third of the national road network, 5000 km, require some form of strengtheningto avoid failure. The Transport Project -- Loan 3593-ROincluded the rehabilitationof about 1,100 km of national roads and works will be completedin 1997. The proposed project continuesto focus on the urgent need to strengthenthe national road network, which now carries 60% of the total road traffic in the country and all internationaltransit traffic.
2.4 Road traffic grew continuouslyuntil 1980. However, it fell by about 20% in the 1980s when fuel was rationed and stricter restrictions appliedto road transport, i.e. trucks and buses could only operate within district boundaries and all transport beyond 50 km had to be by rail. In 1990, traffic was 46% above 1989 levels, with all the increase due to private cars, but it fell again in 1991, following fuel price increases. Since then, traffic growth has followed a more regular and expected trend, in line with the large increase in vehicle registration (see below). Forecasts can be made with somewhatmore confidencenow that economicgrowth has resumed. Examples from other countries indicate that once growth resumes, road traffic can be expectedto grow faster than GDP from the present relatively low levels.
2.5 Detailed traffic surveys, includingOrigin-Destination surveys are conductedonce every five years on the entire national road network, with the last one in 1995. In the intervening years, continuoustraffic counting is performed at over 350 locations on the network. Traffic compositionis assumedconstant between two detailed surveys. To improve the system, the Transport Project included the acquisitionof some classificationcounters to provide continuousdata on traffic compositionwhich are being installed. Less than 10% of the network has traffic levels in excess of 6,000 vehiclesper day (vpd) and less than 3% has over 10,000 vpd.
1990 1995 Traffic in V.P.D. (km) (km)
< 1,000 1,796 1,575 1,000 to 3,000 6,353 5,294 3,000 to 6,000 4,407 4,547 6,000 to 10,000 1,136 1,910 > 10,000 347 718
TOTAL* 14,039 14,044
* excludes length through municipalities.
2.6 Highway Administration and Organization. Construction,maintenance and administrationof the national road network is the responsibilityof NAR which is a regie autonome under the control of MOT and is at present dependenton the budget for almost all its resources (some revenue is derived directly from bridge tolls, transit permits and overloadingcharges levied at frontier posts). Its present organization is shown in Charts 1 and 2. The field organizationconsists of 7 regional directorates further divided into 41 sections, their borders coincidingwith those of administrativedistricts judets). Each section is divided into 4 to 6 districts for routine and winter maintenance. In addition, there are some 140 "formations"for periodic resurfacing and strengthening,each one equipped with one asphalt plant and the correspondingtransport and paving equipment. Other equipmentis held at the district level. There are small workshops for maintenance and minor repairs in each of the 41 sections and 7 regional workshopsfor major overhauls. All resources - equipment, personnel, building, used for periodic maintenanceare currently being privatized. The plan to be executedunder the project with EBRD financing is described in paragraph 2.10
2.7 Engineering, Construction and Maintenance. Engineeringfor the road systemhas generally been prepared by institutesof the MOT, the main one being the Design Institute for Road, Water and Air Transport (IPTANA). In 1990, these institutesbecame joint-stock commercial companies. The stock is still owned by the state but they are candidatesfor privatization. Private engineeringconsultants have emerged, often in joint-venture with foreign consultantsworking on the Transport Project and are competingwith the institutesfor work by contract . Road design standards are barely appropriateto traffic flows and physical characteristics,and upgrading is required to reach EU standards. The cross sections adopted for the proposed project involve a wider paved shoulder for safety and capacity reasons.
2.8 In the past, road constructionwas done by specializedgroups under the MOT, with some specializationby mode. There were national companiesas well as regional ones for the smaller works. In 1990, these large constructiongroups were divided into smaller commercial companiesin a way similar to that described above for the institutes. A number of them have won bids under the Transport Project, both on their own and in joint-ventureswith foreign partners. The latter are benefittingfrom technical assistanceand technologytransfer, which will increasetheir potentialfor eventual privatization. The project will provide assistanceto the constructionindustry following the recommendationsof an ongoing study.
2.9 Until 1993 maintenancehad been done entirely by force account. Under the Transport Project NAR started the process of graduallymoving more work to contract. The process of commercializationstarted in 1994 in one region (Cluj) and was extendedin 1995 to the Brasov and Constantaregions. Periodic maintenancein these regions is carried out by a separate organization-- the Enterprise for Repairs and Works (ARL). Each year, a contract is negotiatedbetween the regional directorate and the ARL for specific maintenancework. Accountingpractices based on commercialprinciples are being used increasinglyin the ARLs. However, a constraintto further commercializationis inadequateequipment in the ARLs.
2.10 An action plan for commercializationis being prepared with the assistanceof EBRD under the proposed project. The plan agreed with EBRDhas two phases: Phase 1 will commercializeperiodic maintenancein the Cluj region in 3 steps: a) complete functionalseparation of all periodic maintenanceactivities; b) setting up of a state owned joint-stock company within MOT; and c) privatizationof the company at an appropriatetime in the future. Phase 2 will extend the process to other regions where ARLs are at various stages of development. The EBRD component also includes the establishmentof an equipmentfinancing facility, under which NAR would purchase equipmentand lease it to the ARL's as they are privatized, recoveringits cost over time from works it contractswith the ARLs.
2.11 Highway Expenditure and Financing. Total road expenditures(recurrent and capital) have been fairly constant between 1985 and 1991, fluctuatingbetween US$260to 300 million per year. The distribution of these between the national roads and the rest of the network has also been stable around 50-50. Most of the capital expenditureshave gone to improvingand strengthening existingroads rather than new construction. Priority has been given to basic routine maintenanceand keeping the road surface in as good condition as possible at the least cost. - 9 -
Highway Expenditures (in million Lei)
l____ NATIONALROADS DISTRICT& COMMUNALROADS TOTAL Recurrent Capital Recurrent Capital US$ Costs Cost Total Cost Costs Total LEI Million 1985 1,489 744 2,233 1,580 545 2,125 4,358 255 1986 1,518 594 2,112 1,730 491 2,221 4,333 267 1987 1,480 612 2,092 1,680 512 2,192 4,284 293
1988 1,508 528 2,036 1,696 466 2,162 4,198 294 1989 1,557 528 2,085 1,918 534 2,452 4,537 304
1990 1,900 1,100 3,000 2,085 830 2,915 5,915 264
1991 8,288 918 9,206 6,515 2,671 9,186 18,392 307
1992 14,440 1,150 15,590 18,871 2,636 21,507 37,097 185
1993 64,107 47,144 111,251 49,077 8,705 57,782 169,033 222**
1994 286,260* 89,146 375,406 129,413 34,865 164,278 539,684* 326**
1995 443,189* 1 141,465 1 584,654* 203,000 61,481 264,481 849,135* 411**
* The amountsinclude the rehabilitationcosts Theannual average of exchangerates, as publishedby the NationalBank of Ronaniawas used
2.12 Until 1996 road user charges consistedof: annual vehicle license fees; vehicle registration fees; a 5% tax on the ex-refineryprice of fuels and various fees and tolls. The level of taxation was low and total revenues amountedto some US$63 million in 1992, with about half of it from fuel taxes. In recent years as the price of fuel was graduallyreduced in constant terms, fuel tax revenues did not increased in parallel with traffic and fuel consumption. Revenues from tolls and transit fees, however almost doubled since 1992. Fuel prices were increasedsubstantially in July 1996 and again in January 1997 (Table 2.1).
2.13 A Road Fund Law was promulgatedon October 2, 1996 based on a 25% charge on ex- refinery prices of fuels and a 10% charge on ex-factoryprices of vehicles. This would generate revenues of some US$200 million per year starting in 1997, growing with traffic and vehicle purchases. This amount, combinedwith about US$35 million in various fees and tolls, would be sufficientto cover the variable costs of the network, but would fall short of covering total road costs, which are estimated at around US$400 to 450 million per year. The combinationof the proposed fuel tax and the existingannual license fees would also be sufficientto cover the variable costs of each vehicle type, exceptfor the heaviest trucks. The existing annual license fee, which has not been incorporatedinto the road fund, should, nevertheless,also be gradually increased, particularlyfor heavy vehicles as the fuel tax typically cannot cover fully the cost they impose to the roads. A modificationto the Road Fund Law, that would introducesuch an annual licence fee, is under preparation. Table 2.2 shows NAR's revenues and expendituresfrom 1994-2003. At Negotiations. Governmentconfirmed its agreementto hold annual consultationsby November30 of each year on the Borrower's proposed budget and expendituresprogram for its national road network and confirm that any investmentsin its national roads network. estimatedto cost US$6.000.000 equivalentor more shall be carried out only if determined to be economicallyviable in accordancewith criteria agreed - 10 - with the Bank (para. 5.1 (a)). Acceptablecriteria means that investmentsestimated to cost US$6 million or more shouldhave an economicrate of return no less than 15% calculatedin accordance with a methodologyand procedures acceptableto the Bank. All costs and benefits will be estimated net-of-tax, and net cost and benefit streams will be developedtaking into accountthe alternative investmentscenarios considered, and related maintenancecosts.
B. Road Transport
2.14 Transport. Road transport was completelyderegulated in 1990 for freight and passenger services. Transporters are now free to enter and operate any route they wish and determine their own tariffs. The single large road transport company under MOT and the other 423 own- accounttransport companiesoperated by various ministriesfor their own sectors have been transformed in smaller units (averageof 280 vehiclesper companyversus 500 in 1989) as follows: the freight companiesare commercialcompanies with state ownership of capital (share companies), while the 55 passenger companiesare Regies Autonomesadministered by the 41 districts and the Municipalityof Bucharest. In additionto these state owned companies,there are already over 2000 private transport companiesgenerally in the form of limited liability companies. The average size of private companiesand individual transporters is small. The intention is to privatize the state owned companiesstarting with those dealing with freight.
2.15 There are now over 3 million four-wheeledvehicles registered in Romania, or about 146 vehicles per 1000 population. Commercialvehicles --buses and trucks-- account for 15% of the fleet with cars comprising the remainder. Cars are concentratedin the urban areas, with Bucharest accountingfor 20% of the registration. Despite the rapid growth of automobileownership, traffic on major intercity roads remains with a high proportion of heavy vehicles, often exceeding30%.
2.16 The present legal axle load is 10 tons for a single axle on motorwaysand European roads (4,500 km) and 8 tons on other roads. NAR is studyingthe consequencesof adopting the 11.5 ton limit of the European Communityfor roads and bridges on European roads as well as increasing the bearing capacity on other national roads. Trucks are only weighed at border posts and overloadingwas a problem before the 1989 revolution,mostly on roads in the vicinity of large constructionsites. While the problem is less acute now, it is likely to come back with economic development. The Transport Project includes the purchase of weighbridgesto improve data collection for pavement design. These are being installed. During Negotiationsthe Governmentagreed to collect data on axle loads for 12 consecutivemonths beginning not later than September30. 1997 and presenting for the Bank's review a report on its analysis. and recommendationsfor a system of axle load monitoringand control by December31. 1998 (para. 5.1 fb)).
2.17 Romanian Automobile Registry. The RomanianAutomobile Registry (RAR) is a national regie autonome acting as a registering authority for all road vehicles. In this capacity RAR's main attributions are: periodic inspectionof vehiclesfor technicalfitness and emission levels; registration; certificationof all new vehiclesusing public roads, based on testing in RAR own laboratories. RAR headquarters are located in Bucharestand it has 40 branches throughout the Romanianterritory. RAR benefited from US$4 million financingfrom the Transport Project (3593- RO) for the supply of 40 vehicle inspectionlines which now provide improved, scientificallybased vehicle testing throughout the country, and an AutomotiveEmission Analysis System. RAR is self financing, taking its revenue from fees charged for vehicle inspectionsand certification. A US$3.9 million sub-componentof the traffic safety componentfor testing equipmentwill ensure a gradual coming into line with EU standardsof domesticvehicle production which is increasingrapidly. In view of RAR's responsibilitiesat a national level related to traffic safety and enviromnental - 11 - protection, the proposed project will finance equipmentfor the homologationand environmenttest of new vehicles. An amount for TA, would be provided within the traffic safety componentthrough bilateral assistanceor a trust fund. This componentsupports Governmentpolicy of aligning with EU standardsby 2005.
2.18 Traffic Safety. Road traffic accidentshave become a serious problem since the political changesof 1989/90. The annual number of traffic accidents, now exceeding 150,000, is growing rapidly, and growth in motorizationis expectedto make a trend reversal difficult. The growth registered from 1994 to 1995 was 37%. It is roughly estimatedthat some 2%-3% of the GDP is lost in accident costs (estimatedto $600 million/year). In 1996 the traffic police registered 8,930 serious accidents, causing fatality or serious injuries and 11,600 causing light injuries to the victims. This exceeds the correspondingamount for 1992 by 12%. The annual consequencesof the severe traffic accidents are out of proportion comparedto Western European countries:
* 37 fatalitiesper 100 injured (< 10 in Western Europe) * 8.6 fatalitiesper 10 000 registered vehicles (< 3 in Western Europe) * 1.22 fatalities per 10 000 inhabitants(high in relation to the low rate of car ownership)
These statistics indicate a higher risk of traffic accidentsand more severe consequencesthan in other CEE countries.
2.19 Institutionaldevelopment has taken place in the field of traffic safety since the Bank- sponsored study of 1993 and a Road Safety Policy Seminar sponsoredby the Bank for its Eastern Europe clients which took place in Budapest 1994. An InterministerialCouncil for Road Safety (ICRS) and a permanent secretariat(SICRS) were establishedin 1995. The members of the ICRS, chaired by the Minister of Transport, are leaders or authorizedrepresentatives from 11 ministries, the Departmentfor Local Public Administrationand the General Councilof Bucharest Municipality which ensures the commitmentto traffic safety on high level. The ICRS has so far approved a preliminary Priority Actions Program 1996-2000for traffic safety based on the proposals of five SpecialTraffic Safety Commissions. A new road code has been submittedto Parliamentfor approval.
2.20 Defining objectivesand targets for traffic safety, improvingthe cooperationbetween the entities involved in traffic safety development,establishing the performanceindicators for traffic safety activities and monitoringthese requires a clear logical framework and increasedattention of the ICRS. Assignmentof responsibilitiesneeds adjustmentto ensure that all major aspects are being covered. Lack of staff experiencedin traffic safety work, lack of equipment and lack of funds hampers all systematicapproach in spite of the establishedhigh level commitmentto traffic safety and substantialefforts made by the Traffic Police, the SICRS and the RomanianAutomobile Registry (RAR) to reduce the number and the consequencesof accidents. Assistancewill be provided to NAR in locating and addressingaccident "black spots" i.e. locationson the road network where the number and the consequencesof a certain type of traffic accidentsubstantially exceeds the average under similar traffic conditionselsewhere. Particularlyhigh traffic accident incidenceis due to the poor - 12 - traffic environmentof the typical Romanian "linear villages"' and the suburbs of the cities. High accident susceptibilitydue to poor traffic environmentis also found on the designatedEuropean Road Network (TERN) where slow motorized transport, animal drawn transport and other non motorized transport (NMT) generally are using the same carriagewayas the growing number of buses, trucks and small cars traveling at increasedspeed. The proposed project includes a traffic safety component addressingthe above issues (see Annex 3).
C. Environmental Aspects
2.21 Lead in Petrol. Romanianrefineries currently add about 0.60 g of lead in the form of tetra-ethyl lead or tetra-methyllead per liter of petrol as an inexpensiveway to enhancethe octane levels to meet the demandsof the motor fleet. The lead content of Romanianpetrol is high compared to other Eastern European countries (0.60 g/l versus 0.15 g/l in Bulgaria, Hungary and Poland). Due to the strong correlation between lead exposure and health effects, the governmenthas taken a keen interest to reduce the amount of lead in petrol. The reduction in lead in petrol is planned in three phases. In Phase I, the aim is to reduce the current lead level of 0.6 gm/l to 0.32 gm/l in the short term (by 1998). In Phase II, at a medium term (less than 5 years) the level will be further reduced to 0.15 gm/I to meet EU standards. In Phase III, in the longer term, the plan is to move towards the use of unleadedgasoline keeping in mind that below the 0.15 g/liter threshold, the incrementalcost per unit of lead reduction increasesas the lead level decreases.
2.22 Preparation of Action Plan. Under the Commissionfor Motor Vehicles, a Working Party has been formed, including representationof Governmentand the vehicle manufactureand refinery industries to develop an Action Plan to phase-out lead in petrol. TechnicalAssistance is being provided to the ICRS to assist in developingthe Action Plan to bring the lead content of leaded petrol to EU standards and to phase in unleadedpetrol, with suitable incentivesand under a realistic time table. During negotiations.Government confirmed that by December31. 1997 it would submit (throughthe ICRS) to the Bank a Lead ReductionAction Plan, satisfactoryto the Bank and carry out the said Action Plan in accordancewith its terms (para. 5.1 (c)). The ICRS will co-ordinateactivities among key players involved in developingthe Action Plan and will report to the Bank on progress. The Action Plan includes technicaloptions and its economic implicationsfor the refinery, the effects of reduced leaded petrol on the existingfleet, pricing policies related to providing incentives in using unleadedpetrol, and increasingpublic awarenesson the benefits of using reduced leaded petrol.
1/ Unlikemedieval villages, where peasantswere concentratedin nuclearvillages for mutualsecurity, travelling to and from their landby day, Romania's villages arelinear in layout with houses facing the snanroads with the owner's landin the form of a long thin strip, typically 25-50mwide, stretchingout behind the hous. This produceslong thin villages often 5kmfrom startto finishof the built-uparea. Becauseof the number and closenes of houses to the road centre line, wideningis difficult and requiresthe highwayauthority to purchase a lrge number of smallplots of land each with a differentowner. Wideningwithout acquiring land, increasesvehicle speedsand decreasesthe spacefor pedestrians,maring accidents inevitable and life for the vilagers unpleasant. Becauseof the linearnature of the villages, bypasseswould seldombe economic. This presents a serious trafficsafety dilmma. - 13 -
III. THE PROJECT
A. Project Objectives
3.1 The objectivesof the project are to:
a) improve traffic safety and the fitness of the vehicle fleet;
b) continuehelping Romaniato meet the changingpattern of demand for land transport infrastructure;
c) improve the managementand performanceof NAR;
d) assist the Romanian civil works constructionindustry in its transition to a market economy; and
e) promote the reduction of lead in petrol.
In addition the project would assist Romaniato harmonizethe standards of its road network, its vehicles and their safety and the institutionalpractices of NAR with those of the European Union.
B. Project Description
3.2 Project Description. The project will consist of five components:
a) a program of about 1,000 km of road and bridge rehabilitation;to include overlayingor reconstructionon the existingalignment, some widening, constructionof hard shoulders and minor geometric improvements;
b) a traffic safety program (TSP); involvingcomponents in education,engineering (roads and vehicles) and enforcement;(see Annex 3 for a full description)
c) a program of institution building involvingcomputerization of NAR and the introduction of bridge and pavement managementsystems; transport planning; continuationof work towards contracting out/privatizingof periodic maintenanceand installationof permanent traffic counting and axle load controls;
d) a program of assistance to the civil works constructionindustry, includingestablishment of a secretariat; training programs and financingof equipment; and
e) preparation of an Action Plan for the reductionof lead in petrol.
3.3 Road and bridge rehabilitationis vital in Romaniaas its contact with Western Europe with its higher axle loads and emphasison road transport makes its impact. Roads have been selected from the European network, includingportions of the Trans European Networks (TEM, "the - 14 - corridors") as a result of feasibility studies (see below). The work will consist of strengtheningto carry 11 tonnes per axle, the EU standard, mostly by overlayingwith asphaltic concrete, and by the addition of wider shoulders of which 1 m will be paved. This is essentialfor safety (there is still a significantproportion of non-motorizedtransport (NMT), includinganimal drawn vehicles, and slow moving agriculturalmachinery), to permit overtakingthus providing capacity for the rising traffic volumes, and to reduce shoulder maintenance.
3.4 The Bridge Repair Program. Bridges needing repair or widening, contained in lengths of road being improved will be includedin the respective contracts,but there will also be a stand alone bridge rehabilitationprogram. This will involve some 50 bridges, and works will consist mostly of replacementof expansionjoints and re-waterproofingof decks. Works will be identified and scheduledby the RD's (regionaldirectorates) with assistance from local consultingengineers if required. Contracts will be managed by RDs. Some small bridge repairs will be done by force accountfor which the loan would finance materials such as joints and water proofing membrane. Technical Assistanceand the equipmentpurchase program will combineto upgrade, modernize and re-equip the whole of NAR's bridge maintenanceactivities, served by a new bridge management system to be introduced at the same time.
3.5 The traffic safety program (TSP) is described in detail in Annex 3. Activities in engineering, enforcementand educationwill be pursued under the coordinationof SICRS. Many traffic safety efforts fail because of poor cooperationamong the many actors; an importantfeature of the TSP is therefore a pilot scale traffic safety demonstrationproject. In the important and heavily trafficked corridor between Bucharestan Brasov, all the actors in the traffic safety field have agreed to cooperateon an integrated project to show how the contributionof each componentfits into the whole. Technicalassistance will be obtained from a major European traffic safety organization, which would be able to call on the entirety of its home country's traffic safety services, as and when needed. The pilot study findings and other subcomponentswill be used to prepare a National Traffic Safety Action Plan 2000-2009. Among the many agenciesinvolved in the componentwill be RAR, which already received assistanceunder the ongoingproject to set up a nationwidechain of vehicle inspectionstations. This assistance, coordinatedby SICRS, will be continuedin the proposed project in the area of standardizationand quality control of new vehicle production, in line with EU standards. During NegotiationsGovernment reconfirmed its agreementto: 1) maintain at all times until the completionof the Project. the ICRS and SICRS with a sufficientnumber of qualified staff and adequatefacilities, as satisfactoryto the Bank: 2) (a) carry out the TSP with due diligence and efficiency: (b) review with the Bank. by June 30 of each year. the progress achieved in the carrying out of such a program: and (c) within four months of each such review, update the program and, thereafter. implementall measures required to ensure the efficient carrying out thereof during the period after such review. taking into considerationthe Bank's commentson the matter: and 3) (i) by December 31. 1999. submit (through the ICRS) to the Bank. for its review, a draft National Traffic Safety Action Plan: (ii) immediatelythereafter finalize said Action Plan taking into considerationthe Bank's commentson such a draft: and (iii) carry out said Action Plan in accordancewith its terms (inara5.1 (d)).
3.6 Institutionbuilding in NAR will include bringing the pavementmanagement system developedunder the previous project up to operational level, to serve as a basis for maintenance works decisions, and introducinga bridge managementsystem. A small cell will be establishedfor advancedplanning, which will put together traffic volume and weight data from automated stations now being installed, physical performancedata from the PMS and BMS, and using Highway Design - 15 -
Model (HDM) 4 and similar software serve as a tool to monitor the developmentof weak or congestedsections, to serve as a basis for the investmentprogram. Computerizationwill be completed and an NAR-widecost accountingsystem will be installed (fundedby EBRD). The periodic maintenanceactivities of NAR and the related equipmentare being commercializedand eventually will be privatized. The project will provide equipment,software and technical assistancefor this work (fundedby EBRD), and some equipmentwill also be provided for routine maintenanceactivities remaining with NAR (fundedby IBRD).
3.7 Assistanceto the civil works constructionindustry will be based on the recommendationsof a study of Romania's civil works constructionindustry, which is being financed from the Transport Project. The draft final report will be completedin the next few weeks. The componentwould provide technicalassistance in contract management,and financial managementand control of enterprises, to a technical secretariatto be establishedin the Associationof RomanianContractors. The study is also likely to recommendvarious measures to improve the business and contractual climate in which contractorsoperate, such as access to foreign exchange,import procedures and a price adjustmentclause in standard public sector works contractsthat correctly reflects price changes. These changes are expectedto bring Romania's practices more in line with those of the European community.
3.8 Reductionof lead in petrol will be brought about by the efforts of a working group coordinatedby SICRS to which the project will provide technical assistance(see paras 2.21,2.22). The work will lead to the preparation of a national action plan for the reduction of the lead in leaded petrol and the making availableunder price incentivesof unleadedpetrol by December31, 1997.
C. Engineering and Status of ProjectPreparation
3.9 Feasibility studies for the major road rehabilitationworks were performed on a "long list" of some 2,500 km of roads in the E (European)network, from which about 1,000 km were selectedby the Governmentand the co-financiersin May 1996 for final design2. Table 3.1 shows the road sections so far selected for World Bank financingtotalling 304 km. Further road sections will be selected from these or subsequentstudies in consultationwith the Bank; criteria of eligibility will be an acceptablefeasibility study, an economicrate of return not lower than 15% and a satisfactory environmentalclearance. The sections already selected for Bank financinghave ERRs between 39 and 62 percent. One road section to be financedby EIB/PHARE,with a lower ERR has been selected neverthelessbecause of its importanceas part of EU Corridor #4. Design work is being carried out by two consortia of consultingengineers, both comprising an internationalfirm and a Romanianfirm. Complete contract documents for bids were sent to the Bank in January 1997. Designs and contract documentsfor the bridge repair program are being prepared by NAR's regional directorates (RD's) with the assistance of local consultantwhere necessary. A General ProcurementNotice was published on July 16, 1996 and prequalificationfor ICB contracts is well advanced. Specificationsfor road maintenanceequipment are being prepared by NAR. TORs for the major consultanciesare substantiallycomplete.
2/ Pre-investment studies and design are being financed from Loan 3593-RO. - 16 -
D. Cost Estimates
3.10 The estimated total cost of the project is US$553 million equivalent. Detailed costs are shown in Table 3.4. Constructioncost estimatesare those prepared by the design consultants, based on outturn prices from ongoing contracts and include a 20% contingencybecause of the inherent uncertaintiesin rehabilitationwork; the foreign/localbreakdown is based on consultants' estimates. The local componentincludes import duties on equipment(about 15 percent for construction equipment), VAT (currently 18 percent) and other taxes and duties, amountingto a total of US$97 million. Costs of technical assistance,study travel abroad, computers and equipmentare based on experience under the ongoing project or consultationswith manufacturers.
3.11 In view of domestic inflation, price contingenciesare based on cost estimates expressedin US dollars, and use the latest estimates of the Index of Unit Value of ManufacturedExports (MUV), averagedat 2.4 per cent per annum over the life of the project. Physical contingenciesfor civil works are assumed at 20% but for other items are not separatelyidentified, and the amounts shown for each item are regarded as budgets not to be exceeded,however engineers' estimatesinclude varying assumptionson quantitiesbuilt in, dependingon the terrain and degree of difficulty.
E. Project Financing
3.12 The proposed IBRD loan of US$150million would financeabout 27 percent of total project cost. The Borrower will be Romania, with onlendingto NAR. The European InvestmentBank (EIB) and the European Bank for Reconstructionand Development(EBRD) will be financingabout $87.5 million and $85.9 million equivalent, respectively. The remaining $214 million includingall taxes and duties, will be financedby Government. A fourth source of finance for this project is expectedto be the European Commission's PHARE Fund (EU-PHARE)which would financemost of the road safety and institutionaldevelopment components with grant financingof about US$16 million, and may as the program develops, finance up to 30 percent of Government's contributionto the road rehabilitationcomponent, up to a maximumof about US$60 million. Any amount in this later category would be as a substitutionfor GOR funds, and therefore would not increase any totals shown in the cost table. PHARE has its own proceduresbased on annual programs and funds are unlikely to be availableuntil late 1997. During Negotiations.the fiscal viability of the proposed level of Governmentcontributions was reconfirmed. Governmentalso confirmedthat it would meet all local costs includingcost overruns and any shortfall in foreign exchange(para. 5.1 (e)). - 17 -
3.13 A financingplan has been developedand is shown below:
FINANCING PLAN (in million US$)
Organization Foreign Local Total IBRD 145 5 150 EBRD 82 4 86 EIB 84 3 87 EU-PHARE 15 1 16 GOR 0 214 214 TOTAL 326 227 553
F. Implementationand Monitoring
3.14 Overall direction of the project will be handled by the existing project managementunit (PMU) now consistingof senior officers of NAR, SNCFR and RAR, without the SNCFR members to which will be added the Director, ICRS. ICRS has five commissionsstaffed by members of participatingagencies, industry and research institutes, the chairmen of which in committee, will function as a sub-PMU for the safety component. Terms of Reference for the PMU are given in Annex 1. During NegotiationsGovernment confirmed that the PMU will be maintainedand suitably staffed throughoutthe life of the project (para. 5.1 (f\). At the detailed level, the project will be implementedby project implementationunits PIU's with sub-PIU's in each implementingagency. Overall control of accountingand disbursements will be handled by the PIU establishedin NAR for the ongoing project, which is efficient and experienced. SICRS and RAR will handle procurement related to the "improvementof technicalvehicle standards"component. The roads component includingblack spots will be managedby NAR, who will also give advice to other agencieson procurement. The traffic safety componentwill be coordinatedby the secretariatof the ICRS (SICRS)which will function as a PIU. Limited technical assistancewill be provided to the PIU's in their first year of operation, financedby EU-PHARE (see below). TOR's for this assistanceare also given in Annex 1. As the other donors are ahead of the Bank in their loan processing and as prequalificationis already underway and designs are ready, it is proposed to provide for retroactive financing and advance contractin2up to $15 million, with effectfrom November 30. 1996. A set of monitoring indicatorshas been developed(Annex 4) and progress reports will list these indicatorsand show their status. NAR's PIU will continueto provide quarterlyprogress reports using the format developedfor the ongoing project, which is satisfactory. Other agencieswill be responsiblefor providing informationon their componentsto NAR's PIU. - 18 -
G. Procurement
3.15 Procurementarrangements for the Bank-financedelements of the project are detailed in the ProcurementSchedule (Annex 2), and Table 3.5 and the Project ImplementationPlan (Annex 6). All procurementfinanced by the proposed loan will follow the appropriateBank Guidelinesfor goods, works and consultants. Prequalificationis using a documentbased on EBRD's standard document which is essentiallyidentical to the Bank's but with IBRD's eligibility criteria. Both EBRD and IBRD will use a documentfor works based on SBDW of January 1995, thus reducing the preparation work for the PIU. Prior review levels are shown in Annex 2. During Negotiations.agreement was reached on the procurementprocedures (para. 5.1 (g)). A Country ProcurementAssessment report has not yet been prepared for Romania, but all procurementwill be based on IBRD standard bidding documents.
H. Disbursements
3.16 The proposed Bank loan would be disbursed as follows:
Category Description Amount ($m) % of expendituresfinanced I Road and Bridge Works 125 100% of foreign expendituresand 60% of local expenditures 2 Equipment 13 100%of foreign expenditures, 100% of local expenditures(ex factory cost), and 80% of local expendituresfor other items l______procured locally 3 ConsultantServices 4 100% 4 Unallocated 8 ILTOTAL 150
3.17 A schedule of disbursementsis given in Table 3.6 which is based on the appropriate historical profile giving a 6.5 year disbursementperiod. This is longer than for the ongoing project because of Government's wish to spread its contributionover a longer period. As disbursement performancehas been good under the ongoingloan, disbursementsmay go faster. Disbursements would be made against Statement of Expenditure (SOEs)for contractsless than (a) $4 million equivalentfor road works; (b) $500,000 equivalentfor bridge works; (c) $100,000 for consulting firms; and (d) $50,000 for individualconsultants. For all contractsabove these limits full documentationwould be required. To facilitate disbursements,a Special Account will be established at a bank in Romaniathat is acceptableto IBRD. The Account will be managedby the National Administrationof Roads' (NAR's) PIU. The authorized allocationfor the Account will be $8.5 million, equivalent to about four months of expendituresunder the loan. The initial deposit will be limitedto $1.7 million and the remaining portions of the allocationswill be disbursed when the - 19 - project has built up sufficientturnover to justify drawingon the full amount, defined as when the total of withdrawalsfor the Loan Account plus the value of any Special Commitmentsmade against the loan are equivalentto $25 million. Applicationfor replenishmentof the Special Account would be submittedon a monthly basis or when one half of the amount deposited had been withdrawn whichever occurred earlier, and must include reconciledbank statements as well as other appropriate supportingdocuments. All other applicationsfor direct payment, special commitmentor reimbursementshould be for amounts not less than 10% of the initial deposit of the authorized allocationsto the SpecialAccounts or not less than 10% of the full authorized allocationsonce available. Submissionsof replenishmentapplications take precedence over the minimum size application. The project is expectedto be completedby March 31, 2003, and the loan closing date would be September30, 2003.
1. Project Supervision
3.18 NAR and RAR are successfullyimplementing their parts of the ongoing project, so two missions a year plus ongoingsupport from the Resident Mission will be sufficientto supervisethe componentsassigned to them. The traffic safety componentwith its dependenceon collaboration between agenciesnot so far used to working together, will require three missions a year, the third by the traffic safety specialist until it is running smoothly. Procurementdocuments and withdrawal/replenishmentapplications will be reviewed by the assignedproject officer in the resident mission before being forwardedto Headquarters, reducing the amount of work required on supervision. Until the end of 1998, missions will be combinedwith missions for the ongoing project. For the safety component,missions will consist of the traffic safety engineer and the task manager, and for highway missions, the task manager and the transport economist. Two missionsby ECi's environmentspecialist will be required. Mission frequencyand duration are expectedto reduce in the outer years. In sum, supervisionof the proposed project would require about 100 staff weeks in FY97 to FY 2003.
J. Environmental Impact
3.19 The project has been classifiedas Category 'B' under the Bank's Operational Directive 4.01 which implies that limited environmentalassessment would be required. The project involves rehabilitation and wideningof existing roads only and does not include any realignment. Since the project would be limited to the existing right of way, there are no concernsrelated to the resettlementof displacedpersons. The project does not affect any archaeologicalor historic sites. The project will contributetowards improvingtraffic flow and vehicles will travel at optimum speeds lowering the fuel consumptionrate. Smootherroad pavements will reduce the wear and tear of vehicles and lower levels of metals and other micro-particlesnormally found in the vicinity of roads. Improved vehicle flow and an asphalt concrete surfacing will also contribute towards lower noise levels. The project has a comprehensivesafety componentthat will identifyand amelioratethe black points that cause accidents.
3.20 The EA for this project was performed in two stages. In Phase I, during the feasibility study of the project, backgroundenvironmental data was collected. Also, possible minor environmentaleffects in certain areas were identified which includedremoval of trees and the interferencewith the existing surface water and ground water flows. During Phase II, detailed mitigativeplans were developed which includedreplanting of trees and installationof proper drainage - 20 - systems. To minimize environmentaleffects during construction,the roads will be watered to reduce dust levels and noise and emission control measureswill be used on the equipments. The EA procedures followed in the project are consistentwith Romanianregulations and Bank Operational Directives.
K. Project Accounts and Auditing
3.21 NAR's PIU will have overall responsibilityfor project accounts and loan reimbursement and withdrawal applications.Other agencies--RAR,SICRS will maintain accounts for their project activities, and provide informationto NAR. All project accounts, statementsof expenditureand the special accountand sub accountand NAR's financial statements,as a regies autonome, will be audited annually, and a report of the audit will be sent to Washingtonby June 30 of the following year. During Negotiationsagreement was reached that (a) all documentsto sunport project expenditureswould be maintainedby the Borrower, and made availableto the Bank for review (5.01 (h): and (b) all project accounts includingthe SOEs and the SpecialAccount and NAR's financial statementswill be audited annually. by independentauditors and audit reports acceptableto the Bank will be submitted six months after the close of the fiscal year (para 5.01 (i)).
L. Proverty Impact
3.22 The project will not have a significantdirect impact on poverty. The Bank has prepared a Social Protection Loan that is being submittedto the Board for considerationto help address poverty issues, which presently are a significantconcern in Romania. The project, however, will have indirect benefits for the population at large: lower transportationcosts would lower the costs of basic food staples and of energy inputs, which weigh heavily on the budgetsof poor families. Traffic safety improvementswill benefit pedestrians and NMT, which include many of the poor; furthermore this segment of the populationlacks the resourcesfor sound medical treatmentfollowing road accidents. Finally, the reductionof lead in petrol has an importantpotential benefit for children, as there is medical evidencelinking exposure to lead to mental development. - 21 -
IV. ECONOMIC EVALUATION
A. Framework
4.1 Rehabilitationof infrastructureafter many years of inadequatemaintenance, and in face of significanttraffic growth prospects, is an important economicpriority. To achieve this objective under the present budget, managerialand institutionalconstraints, the Bank and EBRD have agreed to support a gradual strategy. The ultimate goal is a balanced and cost efficient transport system, that would maximizethe positive externalitiesof providing convenientand economicaccess to transportationservices to the greatest number of people, while minimizingthe negative externalities such as the number and severity of accidentsand the impact on the environment. Other CAS priorities are to raise efficiencyof public sector management,reduce the state role in the economy, open critical areas to private sector participation,promote EU accessionand address environmental issues (para. 1.18). The proposed project addresses all the above priorities as explainedin more details in Chapters 2 and 3. It builds upon the 1993 Transport Project, which is being implemented in a satisfactorymanner.
4.2 The Governmenthas made substantialprogress in adopting market-basedtransport policies since the start of economictransformation in 1990, and there are no major policy distortions that will affect the implementationof the project. Further details are in para 1.8 and 1.12 for measures taken and policies in the transport sector in general and in Chapter 2 for more specifics on road and road transport. Besides the rehabilitationof infrastructure, the proposed project will continue and deepen the support to policy decisionsin the areas of contracting out civil works includingfor maintenance,working through the Road Fund to ensure a stable funding basis for the sector that relies on road user charges, modernizingrules and regulations in the subsector; and improvingtraffic safety.
4.3 By loweringtransport costs, the project benefits are expectedto be widely dispersed throughout the economy. Savingsin vehicle operating costs will initially be capturedby intermediate producers such as truckers and bus operators as well as directly by consumersas car users. Because the road transport sector is now competitive,most of the intermediatesavings will be passed on to the final consumersof goods transported, to the benefit of all income groups. Reduced transport costs will also make exports more competitive. Also, the present value of road expenditureswill be reduced by undertakingroad strengtheningnow and avoiding more expensive reconstructionat a later date. Road maintenanceexpenditures will also decrease on rehabilitated and strengthenedroads. The road safety componentof the project will reduce the cost of accidentson the economy at large. The environmentalimpact of the project is expectedto be minimal, since it deals with rehabilitationof existing roads. On the positive side, reduced fuel consumptionon improved roads will contribute to lower pollution, and gradual reductions of the lead content of petrol should result in significanthealth benefits.
B. Cost-Benefit Analysis
4.4 Road Rehabilitation. The 1,000 km of roads to be rehabilitatedunder the project have been selected on the basis of detailed feasibilitystudies of over 2,500 km of national roads to establish priorities for this project. The main criterion used for selectingthe roads for the project is that the economic rate of return should be above 15%. Considerationwas also given to the strategic importance of the roads to the developmentof Romaniaand to internationaltrade and to the regional - 22 - importanceto the direct vicinity of each road. In carrying out the feasibilitystudies, consultants have carefully compared alternativegeometric standards and maintenancepolicies in terms of their costs and benefits, with the use of the Bank's Highway Design Model (HDM-III). Feasibility Study reports are in the Project File. All costs and benefits were evaluated in constant 1996 prices and have been expressedin US$. Financial costs and prices have been converted into economic prices, net of taxes and duties, but no shadow pricing has been utilized. At present, the exchangerate is freely determined in the market. Since there is unemployment,and this is likely to continue during the period of project implementation,had labor costs been shadow priced it is likely that economic benefits would have been estimatedto be higher.
4.5 Rehabilitationcosts were estimated in function of the conditionof the various roads, determined on the basis of deflection data and existingpavement investigationscarried out by Romanian consultantsfor NAR in 1992-94 and of automatedroad analyzer (ARAN) surveys carried out in late 1995. The ARAN surveys measure the InternationalRoughness Index (IRI), and an array of road conditionssuch as rut depth and distress situations(cracking, rutting, ravelling, potholes, etc). For the purpose of the economic analysis, the roads analyzedwhere divided into links and sections of homogeneoustraffic levels and engineeringcharacteristics. Work quantities were determined in relation to the conditionslisted above, traffic safety considerationsand compliancewith European standards, especiallyfor the width of shoulders. Regarding the latter, however, costs have been minimized in areas where the widening would be very expensivedue to utilities relocation and land acquisition. Unit prices were based on those obtainedon recent contractsbeing executedunder the Transport Project.
4.6 The main benefits of the projects are measuredin terms of vehicle operating cost savings. The variables affectingthese are: the level and rate of growth of traffic by vehicle type and the road conditionswith and without the project. Present traffic level on the various road sections was establishedby the detailed traffic counts and surveys done in 1995 by CESTRIN. Recent traffic trends indicate a growth rate of 7% p.a. in the last few years. Typically, in countries at the level of developmentof Romania, traffic growth exceed substantiallythe increase in GDP. Furthermore, in Eastern Europe there is a motorizationback-log which is likely to feed further traffic growth. The Bank's forecast for Romania's GDP growth is to increase gradually, to about 2% in 1998, 3% in 1999, and 4.5% from 2001 onwards. For the project analysis, a conservativetraffic growth rate of 5%, has been assumedup to the year 2000, falling to 4.5% between 2000 and 2005 and to 4.0% up to 2015.
4.7 For calculatingvehicle operating costs, the traffic has been divided into six categories of vehicles representativeof the Romanianvehicle fleet. The representativetypes have been derived from a weighted average of different models consideringthe present compositionof the fleet and its probable future evolution. The basic characteristicsof the representativetypes were developedfrom informationon vehicle operation and prices from transport operators. They were then used in the HDM model to determine vehicle operatingcosts with and without the project, on the basis of road conditionsmeasured in the ARAN surveys mentionedabove. Time savings were valued at the predominant wage rates for drivers and working trips. Travel time savings for non-workingand leisure trips have been excludedfrom the analysis.
4.8 Based on the above assumptionsfor costs and benefits, the economicrates of return (ERR) calculated over a 20 year period range from 39% to over 62% for roads to be rehabilitated under the project. The weighted average ERR for the road rehabilitationcomponent is 48%. - 23 -
4.9 Traffic Safety. The World Bank's Highway Design Model HDM-III does not evaluate the benefits related to traffic safety improvement.The implementationof the traffic safety componentwill however substantiallyreduce the number of accidentsby eliminatinga large number of traffic accidentblack spots, by improvingdriver's training, by increasing and diversifyinglaw enforcement,by improvingtraffic safety educationand informationetc. These activitieswill accumulatesubstantial annual economicbenefits as shown in para 4.10. Additionalbenefits are anticipatedto be generated from implementationof the long term Traffic Safety Plan 2000-2009, which will be launched in 1999 as a major output of the twinning arrangementincluded in the project. The civil works scheduled to be executed as part of the black spot eliminationprogram and the two pilot projects are calculatedto reduce the annual amount of fatal accidents in the black spot locations by a minimum of 40 (2 accidents/location/year)and subsequently,based on the present ratio of fatalities/injuriesin Romania, reduce the annual amount of injuries by more than 120. The program is also expectedto reduce the annual amount of accidentsresulting in mere damage to property by at least 50% in the black spot locations. This reduces the annual amount of such accidentsby some 800. The broad approach, which characterizesthe traffic safety program, will also substantiallyimprove the adverse ratio of fatalities/injuries(1:2.7) and bring it closer to western European averages (< 1:10). The target of the traffic safety plan will be to reduce the annual amount of serious accidents causing fatalities or injuries by 40% and the annual amount of accidents causing damage to property by at least 30% by 2009. It is expectedthat, if no action on safety is taken, due to growing motorizationthe number of injuries would rise by at least 12% a year.
4.10 The estimationof the annual economicburden to the society due to road traffic accidentshas been made based on current accidentpricing in western Europe and has been adjusted using the ratio of GDP/capitaof Romania comparedto that of western Europe. The following pricing has been used
one fatality $ 130 000 one injury $ 13 000 one light accident $ 1 000
Trheoutcome of the implementationof the 10-yearTraffic Safety Plan (TSP 2000-2009)will be a gradual reduction of the annual economiclosses to the society caused by road traffic accidents. The annual benefits are estimated to accumulateas follows:
1999 - 1.0 % of the total economiclosses in 1995 $ 5 million 2000 - 2.0 % " " $ 10 2001 - 4.0 % " " $ 20
A sound and stable financingfor the Traffic Safety Plan 2000 - 2009 will continue to increase the annual savings in accident costs by an additional$ 20 million/yearuntil all activities includedin the plan have been implementedand the amount of accidentsreduced by approximately40% compared to the situation in 1995. This target corresponds very well with long term targets being set in many western European countries today (ref. Norway. Sweden and Finland all renownedfor excellent traffic safety achievements).
The black spot eliminationprogram is expected to lower the amountof accident rates in black spot locations to standard level. The annual accident costs in present black spot locations will reduce as a consequenceof the executionof the civil works program as follows: - 24 -
1999 - 25% of total impact of the program = $ 1.4 million 2000- 80% $ 4.5 2001-100% " =$ 5.6
4.11 The total costs of the proposed traffic safety activities amount to $ 24 million. The Bank loan would finance $8.6 million and the EU-Phare program cofinancing is expected to be $11.0 million. The implementation of the proposed $24 million Traffic Safety Program would yield an economic rate of return (ERR) of about 96%. The ERR for the civil works component of the program only, which is the main part ($13.6 million) supported by the proposed Bank loan would be about 40%.
C. Sensitivity and Risk
4.12 There are few risks which would affect the economic rates of return of the project. For the road rehabilitation component, the main one would be that traffic growth would be less than expected and benefits would thus be lower than estimated. If unanticipated construction difficulties and or delays are encountered, construction costs could be higher than expected. Sensitivity of the ERR to these two risks and to increase maintenance costs was analyzed by reducing traffic and therefore vehicle operating cost savings by 20% and increasing costs by 20%. The effect of either on the ERRs is less than 20% and ERRs would still range from 32 to over 53% (see Annex 7). For the road safety component, the risk is that the reduction of accidents will be less than expected, but the savings of even minor reduction in accidents are so large in comparison to the level of investment that the ERR will remain high under any scenario short of major institutional failings.
4.13 The more significant risks are of a broader institutional nature:
a) insufficient counterpart funds. The risk has now been reduced since the Road Fund Law has been approved as it will provide NAR with funds to complement budget allocation. In addition the Government has undertaken that the project will be given priority over any other investments to be undertaken by NAR, however a residual risk does remain given Romania's fiscal difficulties, and in anticipation of potential problems, annual consultations on budget allocations and a mid-term review are provided under the project;
b) strained implementation capacity in the earlier stages of the project, while the Transport Project is still under implementation. To reduce this risk, technical assistance to the PMU is provided in the project;
c) delays in implementing the agreed strategy on commercialization of periodic maintenance operations. NAR has already started the process in 3 of its 7 regions and there is specific assistance in the project to deepen and extend the process; and
d) implementation of the traffic safety component is dispersed among many different agencies not used to working together and coordination may be difficult. The project envisages twinning of the road safety group with an experienced partner.
With the arrangements and assurances provided under the project, risks are considered acceptable. - 25 -
V. AGREEMENTSAND RECOMMENDATIONS
5.1 During loan negotiationsagreements were confirmedon the following:
(a) to hold annual consultationsby November 30 of each year on the Borrower's proposed budget and expendituresprogram for its national roads network during the followingfiscal year and confirmationthat any investmentsin its national roads network estimatedto cost US$6,000,000equivalent or more shall be carried out only if determined to be economicallyviable in accordancewith criteria agreed with the Bank (para. 2.13);
(b) to collect data on axle loads for 12 consecutivemonths beginning not later than September30, 1997 and presenting for the Bank's review a report on its analysis, and recommendationsfor a system of axle load monitoring and control by December 31, 1998 (para 2.16);
(c) that by December 31, 1997 it would submit (throughthe ICRS) to the Bank a Lead ReductionAction Plan, satisfactoryto the Bank and carry out the said Action Plan in accordancewith its terms (para 2.22);
(d) to: 1) maintain at all times until the completionof the Project, the ICRS and SICRS with a sufficient number of qualified staff and adequatefacilities, as satisfactoryto the Bank; 2) (a) to carry out the TSP with due diligence and efficiency;(b) to review with the Bank, by June 30 of each year, the progress achievedin the carrying out of such a program; and (c) within four months of each such review, update the program and, thereafter, implement all measures required to ensure the efficient carrying out thereof during the period after such review, taking into considerationthe Bank's commentson the matter; and 3) (i) by December31, 1999, submit (throughthe ICRS) to the Bank, for its review, a draft NationalTraffic Safety Action Plan; (ii) immediately thereafter finalize said Action Plan taking into considerationthe Bank's commentson such a draft; and (iii) carry out said Action Plan in accordance with its terms (para. 3.5);
(e) to meet all local costs includingcost overruns and any shortfall in foreign exchange(para. 3.12);
(f) that the PMU will be maintained,suitably staffed, throughout the life of the project (para. 3.14);
(g) the procurementprocedures (para. 3.15);
(h) the documentationsupporting project expenditureswould be maintainedby the Borrower, and made availableto the Bank for review (para. 3.21); and
(i) that all project accounts includingthe SOEs and the Special Account and NAR's financial statementswill be audited annually, by independentauditors and audit reports acceptableto the Bank will be submittedsix months after the close of the fiscal year (para. 3.21). - 26 -
5.2 The following are conditionsof loan effectiveness:
(a) that the SubsidiaryLoan Agreementhas been executedon behalf of the Borrower and NAR; and
(b) that all the effectivenessconditions of the EBRD and EIB loan (other than those related to the effectivenessof the Bank Loan) have been met.
5.3 With the above assurancesand conditions,the project is suitable for a Bank Loan of US$150 million to Romaniafor a period of 20 years, includingfive years of grace, at the Bank's standard interest rate for LIBOR-basedUS dollar single currency loans. - 27 - Table 1.1 ROMANI A SECOND ROADS PR. ).Jb('T Freight Traffic by Mode ol Transport
R 0 A 1) PUBLIC olwv RIVER PIPELINES TOTAL RAILWAY TRANSPORT AIC('(OAf7 StB-T107 IL In billion ton-kim 1960 19.8 I 2 1 (.9 1.0 23.8 1965 31.0 2 -i 5.8 1.2 1.1 39.1 1970 48.1) 12.9 1.3 1.8 64.0
1975 64.8 ') 3 9.6 2.1 2.8 89.3 1980 75 5 1.8 :1 277 2.4 5.2 110.8 1985 74.2 7i 1____ 7.9 2.4 4.8 109.3 1989 X1..I I ' 40) 3.7 6.7 121.5 1990 573 i ;)() 2.1 5.1 93.5 1991 37.8 r. I.) .0.5 2.0 3.2 63.5 1992 28.2 3 I ! '3 1.9 2.6 48.0 1993 25.1 2 8l 1 I 4.6 1.6 2.5 43.8
1994 24.7 i .0 , .! 1.6 2.8 35.1
1995 27.2 64) ,.. i 2.6 Modal 1960 83nn 4%6;" )' 4°/n 4% 100.00%/C Distrib. 1989 67% 5"; 2' !) 3% 5% 100.00%/c 1993 57%) 6 -' 2 " 40%o 6% 100.00% IIin illi o I tO Is
1960 77.6 56 7 !(17 - 161.4 1.9 5.6 249.5 1965 114.4 I i(6l 271i 10I 2.9 7.5 526.9 1970 171.3 239) SMI) 4 8 3.4 11.3 1019.8 1975 228.3 4I 85 MK 128 I 4.1 14.5 1527.4 1980 274.6 4 1 3 I,"335 178o 5 12.3 22.5 2095.9 1985 - 283 4 3_2.2 I (21 1_ 2 189.4 21.3 2510.3 1989 306.3 3S23 3j 24!16 37.4 3(0.6 2790.3 1990 218.8 2).I 8 1732 e I'93-; 4 12.0 23.5 21887.7 1991 146.3 11H,I I:- ()S(3 8.2 16.1 1159.9 1992 111.4 65) 1 04' 7C- 66.2 14.8 839.8 1993 99.0 453 52(' 574 5 7.1 13.4 694.0 1994 99.2 i 0 11. 80 16.0
1995 105.11 159.(6 _i al 11 313 _ _ __
A v e r a g e i s t 'i n c c i n kim 1960 255 )6j II I 474 179 1965 271, 1 I4 414 147 1970 2X80|1 1 382 159 1975 284 22 Ii V 512 193 1980 275 260 12 I 195S 231 1985 262 1 1 11 I 13(0 225 1989 265 15 13- I 99 219 1990 262 ')k 1-'1 1 175 217 1991 258 39 1 2S1 243 199 1992 253 55 Ij 2 306 161 1993 253 62 122 2> 225 186 1994 242 2 2(0 175 1995J.___ -Ajy\romVo - _s_s.-_, ,_ in jy(romVroads21sartab1x s - 28 - Table 1.2
R O M A N I A SECONDROADS PROJECT Pssenger Traffic by Mode of Transport
| ~R OA D |' 004-.. ';- RAILWAY ''i t- ,.T, . PUBLIC BUS OTHERS SUB-TOTAL
In billion passenger km )
1960 10.7 1.4 2.3 3.7 .. 44 1965 13.5 3.6 5.7 9.3 1970 17.8 7.9 12.5 20.4 382 1975 22.4 18.9 30.1 49.0 ' 714 1980 23.2 24.0 37.9 61.9 854. 1985 31.1 21.7 31.0 52.7 13.8
1989 35.5 23.1 26.3 49.4 84.9 1990 30.6 24.0 21.1 45.1 75.7 1991 25.4 20.6 - - - 1992 24.3 25.3 16.4 41.7 66.0 1993 19.4 19.8 13.7 33.6 53.0 1994 18.3 25.0 n.a. n.a i 1995 18.9 22.4 n.a nMa .n,
Mod. dist. % 1960 74% 10% 16% 26% 100% 1989 42% 27% 31% 58% 10% 1993 40% 32% 28% 60% 100%
______( In Million Passengers ______
1960 215 72 188 260 475 1965 262 170 474 644 907 1970 328 359 1043 1402 1730 1975 367 815 2469 3284 3651 1980 348 1034 3035 4069 4417 1985 460 837 3722 4559 5019.
1989 481 879 3153 4032 4513 1990 468 781 2531 3312 3780 1991 363 760 - - 1992 324 678 1808 2486 2810 1993 226 506 1463 1969 2195 1994 207 1543 1995 211 1406
( Average Distance In Km
1960 50 20 12 14 30.0 1965 51 21 12 14 25.0 1970 54 22 12 15 22.0 1975 61 23 12 15 20.0 1980 67 23 12 15 19.0 1985 68 26 8 12 17.0
1989 74 26 8 12 19.0 1990 65 31 8 14 20.0 1991 70 27 - - 1992 75 37 9 16 23.0 1993 86 39 9 17 24.0 1994 89 16 n.a n.a n.a. ource: NRA m:y y2% .p ROMANIA SECOND ROADS PROJECT Transport Sector Investment (In Lei Million)
1976-1980 1981-1985 1986-1990 1991 19921 1993 1994 1995 1996* Total % Total % Total % . .
Railways 31'108 35.7 33'417 27.5 28'440 26.5 360 877 11'649 20739 78'620 59'541 Highways 7455 8.5 4'867 4.0 4'842 4.5 918 1'882 10'508 35'642 93'900 102'160 Road Motor Vehicles 18'014 20.7 9'980 8.2 4753 4.4 ------Rivers & Canals 11'289 12.9 15'515 12.8 21'302 19.9 1'214 3'678 9'068 24787 30'614 39'394 Maritime 15'965 18.3 47'670 39.2 35'954 33.5 -
Aviation 1'826 2.1 2'379 2 3'265 3 135 827 6'104 17'875 26'250 101'453 M Pipelines 1571 1.8 ------Subway (Metro) 7'827 6.4 8756 8.2 943 1'914 19'948 32'920 35'332 30'000
Total in Lei (m) 87'228 100 121'655 100 107'312 100 3'570 9'178 57'277 131'963 264716 332'548
Transport as share of public investments (%) 10.9 10.6 Exchange rate in US$ I 308 760 1'660 2'070 3'200 US$ millionequivalent 6'830 = 59.0 29.8 75.4 79.5 127.9 103.9
* Estimated
M:\CJL\ROM\SAR\TAB13.XLS Romania Second Roads Project RoadUser Charges FuelTax Revenues Fuel Prices as of January 1, 1997 Fuel Prices as of July 2, 1996 (Estimated Yield of Road Fund) (without Road Fund)
Premium I Regular I Normal I Unleaded Diesel Premium Regular Normal Unleaded Diesel Prices in Lei/ton Before July 2, 1996 618840 576711 509931 625863 392910 Ex refinery 1298700 1192400 1055400 1327200 914600 Ex refinery 794326 722643 639631 804381 509446 Excise 194805 178860 158310 179172 54876 Excise 119149 108396 95945 108591 30567 Road fund 324675 298100 263850 331800 228650 Fuel tax 39716 36132 31982 40219 25472 Retail Margin 175000 175000 175000 175000 175000 Retail Margin 136400 136400 136400 136400 136400 VAT 358772 331985 297461 362371 247163 VAT 196'o6 180643 162712 196126 126339
Retail Price /ton Retail Price /ton ill l ei 2351952 2176345 i950021 2375543 1620289 in Lei 1285718 1184214q 1066669 1285718 828224 ___ ._ -I_ .I._ - _ __ _n US5 783.98 725.45 650.01 791.85 540.10 in US$ 428.57; 394.74 355.56 428.570 276.07 Retail Price /liter Retail Price /liter in Lei 1811 1654 1463 1829 1329 in Lei 990 900 800 990 679 in US$ 0.45 0.41 0.37 0.46 0.33 in US$ 0.33 0.30 0.27 0.33 0.23
RATES % RATES % Excise 0.15 0.15 0.15 0.135 0.06 Excise 0.15 0.15 0.15 0.135 0.06 Road fund 0.25 0.25 0.25 0.25 0.25 Fuel tax 0.05 0.05 0.05 0.05 0.05 VAT 0.18 0.18 0.18 0.18 0.18 VAT 0.18 0.18 0.18 0.18 0.18 g/cc 0.77 0.76 0.75 0.77 0.82 g/cc 0.77 0.76 0.75 0.77 0.82 Lei/US$ 4000 4000 4000 4000 4000 Lei/US$ 3000 3000 3000 3000 3000
m:\cj\rom\sar\ruc.xls(table2.1) - 3 1- Table 2.2
ROAD SECTOR REVENUES AND EXPENDITURES. 1994 - 2003 II-.le1461 BASE CASE (Road Fund xtarts 1997; 25% fuel tax; 1 0% car purchase tax: 3% economic growwth;lIl/Stata funds-60%I40%
M=S etUDe.. TMa vaieeel 1994 1995 1396 1991 19981 1999 2000 2001 2002 20031 Actual Actual Buoget Proiectld ProjectJd Projectid Proje.ctd Ptojectjd Prajectld Proiactid Aamt.c e.:u.q* vecl RCL'JSD 1650 2300 3000
REVENUES
Own Re-enue. Soecial Fuel Tax 16, 24 27 RoadFund Fel T. 0 0 0 126. 130 IN4 138 ?4Z 146 15? Road Fund CarPurchaso Tax 0,: 0 0 .25 261 26 27 ~28 2 30 BridgeTolls & Crossing Taxes 47 42 3.4 35 361 37 38 38. 41. - 42 OthearRevenues it: A a a of a a 0 a a Subtotal fat Own Revenues 74 70 .- 61 186. 192 197 20 ZiaO .21I 22
Net Tall Revenue. for Pit..a a Q 0 .0 0 a *r .1
lntemar,ort.l Funds IFIlLoans: RoadRehabilffdon I 49. .5 87 65 O a 0 0 - IF Loanrs:Rcad Re?abill2oonl 01 0 0 32. 97 97 27 a 0 0 EBRD: Buchiarest-PitesdMotorway :0 0 .0 27 27 a0 0a SNP: Loan for 7bridgesrer~oilaof1 03:: 0 2 3 1 0 0 0r a 0 PNARE (ECU 21m) 0 5 12 9 0 0 0 0 0 -0 Subtotal for Intermetionel Funds 48... 60 101 136 125 ST 92 a0 0 a
LocalCommercial Loans 0:;-7O: la .- 44 0 00 01 . ... : .0~
State budget fund. C0"MbUV01ni, inO .sm.r .39: 28 is 0 0 0 a a a a Conrnfburion for debr s.rvice 2 6 19 26 45 so6 74 as ea Contnbuion for maintanance 71t :54 61 16 .7 2, 0 56S 4t 44 Counterpartfuncds for IrFiRehab, I 2' 23- 48, 34 0 a-Q0 01 a Counteroarnfunds for IF! Refrab.II . 0 21. e 65 65 a6O5 Counterpart fundisfor Sucharest-PilazziMoto 0 0 0 25 25 0
Sui.,otaxlstate budget funds 1 . I".4 123 142 i 131 130. 130 130i
Total Road Sector Revenues 1 2621 2511 360 443 46S 4.1S 4311 340cI 3alz1
EXPENDITURE
Maintenance RoutineMaintenance -30:: 30 . .- 30 30 30 -33 S1.. 6S .1 55 PenodlicMaintenan-e 80:: au so so aD .85 85 .s 16 12 6 Eou:oment 17 1 ~~~~13 ~~~20 ~~~20 ~~~~~~~~20 20 20 20 20 Subtotal Maintenance Expenditurea 127: .117, 123 130 130 140. 186 205 227 238
Rahabilixation Rehabilitbaln IExpenditures 16 -14 108 0 aj0 Renhabitation!It Exoenditures 0 0 5 1621 162 1162 a M.. II Subtotal Rehabilitation Expendiurwe 76 - 8 14".5 162 162j 162 lI 0. 6
Non-moxtorway Inveanimnta OIlier invesonerw 26 18. 11 30 301 30 30 m '30 30 Subtotal non-motorway inveetynnt. 26 .18 1`1 30 30 30 30 30 -30 30
Debt Service, DebtService for iFrs RoadisRaltabirraon I .2 6. 19 24 36 38 3? 36 33 32 Debt ServiceforlIFlasRoacs R.habb,kIal,':.O. 0 0 .1 .6 13 20 31' :48 - 47 Oebt Srviceefor BNP Loan (T bridges) Cu- 0_. 2 2 - DebtSeic.tfoLacalLoana(Ouclt.-CoNstI - Q. 3 21 4 38 28 `IS `01 0 - Debt service for8ucuresti-Piete.i 0 a0 0 1 31 4 9 a a 6 Subtotal debt s.rvic. 21 Sf *40f 111 Sf 841 63j 1Sf 18 86a
Total Non-motorway Expenditures 2311 2271 3191 3931 4011 41 3 t 348 35
MOTORWAY PROGRAMMEI
Fond. potentially e.ail.bl* lRtav.-EaP.I 311 241 311 521 521 GI 01 -0 0o 0 IS Road Sector Revenues 12% .. 10% .9% 12% 11% 0% 0% ay. . 0% Q.
Motor-Y Propoasles 8ucn*,est-Pit*sti 1US$ 103 mn) 0 a 52 521 0 0 0 el a Diner Motor-ays 31 24 31 0 o 0 0 0 0 0 ( Sub-total Moiorwveye 31 24 31 52 621 0 a - 0a
Fundling Gap a 0 0 0 a a 0 a GI - 32 -
Table 3.1
ROMANIA SECOND ROADS PROJECT World Bank FinancedRoad Sections
CONTRACT# NUMBER ROAD SECTION NAME LENGTH KM ERR %
201, 202 DN6 Bucharest - Ale.-andria 78.0 38 203, 204 DN2/E85 Urziceni-Buzau-Rimnicu Sarat 88.4 51 205, 206, 207, 208 DN65/E70 Craiova - Slatina - Pitesti - Motorway 115.6 44 209, DN1/E60 Campina - Comarnic 22.2 38 TOTAL 304.2
m:\cjl\rom\sar\tab3.xis Romania Second Roads Project NAR's Equipment Fleet by Type and Age (As of December 1995) (includes equipment supplied under Transport Project)
Age 1-5 years 6-10 years 11-15 years Over 15 years Total No. Equipment Type Number % Number % Number % Number %
I Trucks 160 31 210 40 112 22 36 7 518 2 Fuel Tankers 11 26 6 14 6 14 20 46 43 3 Bitumen Storage Tanks I1 12 7 8 28 32 42 48 88 4 Motor Graders 12 11 42 41 19 18 32 30 105 5 Front Loaders (< 2 m bucket) 27 36 6 8 32 42 11 14 76 6 Bitumen Distributors 12 19 31 49 12 19 8 13 63 7 Snow Blower 19 12 22 14 32 21 80 53 153
8 Bulldozer 6 43 3 21 4 29 1 7 14 9 Excavator 0 0 6 17 12 34 17 49 35 10 Asphalt Plant 12 10 9 8 40 33 59 49 120 11 Road Marking Machine 16 76 4 19 1 5 0 0 21 12 Asphalt Flnisher 14 12 6 5 51 43 48 40 119 13 Compacting Rollers 48 15 30 9 73 22 180 54 331 14 Tractors 86 15 136 24 131 23 213 38 566 15 Multipurspose Vehicles for Road 54 100 0 0 0 0 0 0 54 Maintenance, with attachments 16 Multipurpose Backhoe Loaders 24 100 0 0 0 0 0 0 24 for Road Maintenance, with attachments
TOTAL 512 518 553 _ 747 = 2330
:\qI\rom\sar\tab32.xIs - 34 - Table 3.3
ROMANIA SECOND ROADSPROJECT List of Equipmentto be Procuredunder the Project**
No. Item No. Units
1 Multipurpose Road Maintenance 42 Vehicle (includingattachments)
2 Double drum VibratingCompactor 1-1.5 tonne 42
IBRD Routine 3 Bridge MaintenanceEquipment Set 42 Maintenance 4 Bitumen EmulsionSpreader 42
5 Road Marking Materials
6 Laboratory Equipment
EBRD Routine 7 MultipurposeRoad MaintenanceVehicle 42 Maintenance (includingattachments) 8 Bridge Inspection Unit 1
9 Asphalt plant 80-100 t/h 5 10 Asphalt paver-finisher 10 EBRD Periodic 11 Bitumen EmulsionSpreading Machine 40 Maintenance 12 DoubledrumVibrating Compactor4-5 t. 15 13 Bitumen SpreadingMachine 10-15t. 5 14 Tipping Truck 25 t.
* Without taxes ** Other items may be purchased by direct contractingthrough current or recent contracts
m:\cjl\rom\sar\tab33.x1s Romania: ProposedSecond Roads Project COST ESTIMATES (US$ thousand equivalent; including taxes, duties & contingencies)
TOTAL IBRD IBRD EBRD EIB PHARE GOR FOREIGN LOCAL PROJECT COMPONENT COST a! COST % COST COST COST b/ COST c/ COST COST I TRAFFIC SAFETY b/ la Strengthening ICRS 120 0 0 0 0 120 0 84 36 lb Education and driver training 200 0 0 0 0 200 0 140 60 Ic Traffic Law Enforcement 4,000 0 0 0 0 4,000 0 2,800 1,200 Id Black spot treatment 8,500 5,610 66 0 0 0 2,890 5,610 2,890 le DN Traffic Safety Pilot 3,500 2,310 66 0 0 100 1.090 2,310 1,190 If Linear Village Traffic Safety Pilot 1,100 720 66 0 0 0 380 726 374 Ig Bucharest Traffic Safety Pilot 1,100 0 0 1,100 0 726 374 lh Vehicle Homologation Equipment (RAR) 3,880 0 0 0 0 3,830 50 2,716 1,164 li Traffic Safety Services (Twinning Arrangement) 1,700 0 0 0 0 1,700 0 1,615 85 sub total 24,100 8,640 33 0 0 11,050 4,410 16,727 7,373
2 ROAD REHABILITATION 2a State roads 445,350 104,060 66 65,160 85,500 0 190,630 244,943 200,408 1 2b Bridge Programme 26,100 17,000 66 0 0 0 9,100 19,575 6,525 U 2c Supervision 12,170 4,800 100 3,530 2,000 0 1,840 11,562 609 2d Road and bridge design 1,500 1,500 100 0 0 0 1,425 75 sub total 485.120 127,360 67 68,690 87,500 0 201,570 277,504 207,616
3 EQUIPMENT & MATERIALS 3a Equipment & materials for routine mamt. of roads, 24,820 14,000 70 6,730 0 0 4,090 17,374 7,446 bridges, for CESTRIN; for item 4a, for road signs; 3b Equipment for Periodic maintenance 14,220 0 70 10,480 0 3,740 9,954 4,266 subtotal 39,040 14,000 17,210 0 0 7,830 27.328 11,712
4 INSTITUTIONAL DEVELOPMENT 4a TA for proj mng't 400 0 0 0 0 400 0 380 20 4b Assistance to construction industry 500 0 0 0 0 500 0 475 25 4c Computerization of NAR 1,000 0 0 0 0 1,000 0 950 50 4d CommercializationofNAR 1,130 0 0 0 0 1,130 0 1,074 57
4e TA for PMS,BMS, traffic planning; legislation; 1,800 0 0 0 0 1,800 0 1,710 90 ;t sub total 4,830 0 0 0 0 4,830 0 4,589 241 GRAND TOTAL 553,090 150,000 85,900 87,500 15,880 213,810 326,148 226,942 a/ including price contingencies which reflect anticipated changes in local and intemational prices of 2.4% per year (USS) b/ No taxes on PHARE financed items. c/ includes all applicable local taxes, incl. VAT of 18%; & Customs duty of 15% on equipment. file m:\cjlrom\sar\aprcost.xls May 1. 1997 - 36 - Table 3.5
SUMMARY OF PROCUREMENT ARRANGEMENTS a/ (US$ million equivalent)
ProcurementMethod Project Element ICB NCB Other b/ NBF c/ Total
1. Civil Works Road Rehabilitation 157.67 287.68 445.35 (104.06) (104.06)
Bridge Rehabilitation 26.10 26.10 (17.00) (17.00)
Black Spot Works 8.50 8.50 (5.61) (5.61)
Civil Works for DN Traffic Safety Pilot 3.50 3.50 (2.31) (2.31)
Civil Works for Linear Village Traffic SafetyPilot 1.10 1.10 (0.72) (0.72)
2. Equipment and Goods Equipmentfor Routine Maintenance 14.00 7.82 21.82 (12.00) (12.00)
Materials 3.0 3.00 (2.0) (2.0)
3. Technical Assistance and Consulting Services Supervision 4.80 7.37 12.17 (4.80) (4.80)
Road Design 1.50 1.50 (1.50) (1.50) 4. Other Project Components (NBF) 30.05 30.05
Total Project 171.67 39.20 9.30 332.92 553.09 (116.06) (25.64) (8.30) (150.00) a/ Costs include contingenciesand taxes. Figures in parenthesesare amountsto be financed by the IBRD Loan b/ Equipment and goods procuredby internationalshopping and Consultanciesfollowing Consultants Guidelines c/ Not Bank Financed
File name: m:\cjl\rom\sar\aprcost.doc - 37 - Table 3.
Romania Second Roads Project Estimated Scheduleof Disbursement*
CumulativeDisbursements Bank Fiscal Year Quarter Ending US$ Million Equivalent
98 September 30, 1997 1.7** December 31, 1997 3.0 March 31, 1998 6.0 June 30, 1998 11.3
99 September 30, 1998 18.0 December 31, 1998 25.1 March 31, 1999 30.0 June 30, 1999 37.5
00 September 30, 1999 45.0 December 31, 1999 52.5 March 31, 2000 60.0 June 30, 2000 67.5
01 September 30, 2000 75.0 December 31, 2000 82.5 March 31, 2001 90.0 June 30. 2001 97.5
02 September 30, 2C0 i 105.0 December 31, 2001 112.5 March 31, 2002 120.0 June 30, 2002 127.5
03 September 30, 2002 132.8 December 31, 2002 138.8 March 31, 2003 142.5 June 30, 2003 146.3
04 September 30, 2003 150.0
Loan Effectiveness estimated in first quarter FY98 Initial Deposit of US$1.7 million to a Special Account.
File name: m:\cjl\rom\sar\tab36.xls ROMANIASECOND ROADS PROJECT NATIONALADMINISTRATION OF ROADS
MINISTRYOF TRANSPORT GOVERNING __,latm)ng Orgarniztionand APPROVED, NATIONALADMINISTRATION couNc J *GENERALDIRECTOR OF ROADS eng. DANILA BUCSA GENERALDIRECTOR -- wl_ vkooornOffce (M
STAFF 220 TA pars. 195 DEPUITYGENERAL Worker 25 DIRECOR
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tDenerecto tmdDSo Slr J t kd; leoU.-)t_
ECSfurdantZ) .~~ w 0 0i E V0 ROMANIASECOND ROADS PROJECT NATIONALADMINISTRATION OF ROADS
.REG.r DIR. SECTIONS_{ (7) DISTRICTS (54) t_BUCHAREST J WORKSHOPS(1) AsphaltPlant Units 12
EGL VR ( SECTIONS(5) DISTRICTS(33) CRAIOVA JWORKSHOPS (1) AsphaltPlant Units(12)
REG.DR, A { SECTIONS(5) DISTRICTS(37) TIMISOARA___~- WORKSHOPS(1) AsphaltPlant Units (i19))
_ J ~~REG.-DI:R. 5 _ _ SECTIONS(7) DISTRICTS(47) CL J WORKSHOPS(1) AsphaltPlant Units (18)
~SORGANIZATIONv( )----GENERALDIRECTOR WORKSHOPS(l)) AsphaltPlant35U)nit (17) )
REG.~~~ F:I:{ SECTIONS(9) DISTRICTS(S6) U\ILA J_WORKSHOPS (1) ApatPatUis(1
-RE SECTIONS(6) DISTRICTS(32) CLNiZ
3~~~CETI - 40 - Annex I Page 1 of 5
Romania Second Roads Project Project Management Unit
Terms of Reference
The Project ManagementUnit (PMU)will be responsiblefor the management,administration and coordination of the project. Its members will include a Chairman and seven representatives in a managerialposition of: (1) the NationalAdministration of Roads (NAR)department of construction;(ii) the NAR department of Maintenance;(iii) the NAR department of Equipment and Materials; (iv) the NAR ProcurementDivision; (v) the NAR EconomicDepartment; (vi) SICRS and (vii) RAR. The PMU will have a secretary providedby NAR, with three permanentstaff; an engineer, an accountant,and an administrativeofficer. All permanent staff of the PMU will be providedunder the current budget of the NAR. The Chairmanand membersof the PMU can delegate its functionstemporarily in other persons(s) of their departments when duly justified reasons exist.
I1. The main functions and responsibilitiesof the PMU will be:
a. monitor and coordinatethe activitiesof the project until its completion,including the one- year guaranteemaintenance period for civil works;
b. liaise with the Bank in all matters concerningproject implementationand supervision;
C. provide adviceand assistanceto project beneficiarydepartments on procurementmatters, and clear procurement documentsin order to ensure that they meet Bank procurement guidelines;
d. finalize arrangementsfor the technical assistanceadvisors;
e. submit to the Bank disbursementapplications on behalf of the beneficiary agencies or departments;
f. monitor and supervise the project accounts;
g. prepare (and submit to the Bank) quarterly progress reports describing (in accordance with the progress implementationindicators previously establishedand agreed between the Government and the Bank) project implementation and compliance with time schedule, and identifyingissues arising during the project implementationand solutions proposed, as outlined in the legal documents;
h. submit to the Bank annual project audit reports, prepared by independentauditors, as described in the legal documents;and
i. contribute to the preparation of a project completion report (PCR); based on the submission of the progress reports, correspondencewith the Bank, and actual tasks completed comparedwith those establishedand scheduled at appraisal. - 41 - Annex 1 Page 2 of 5
2. Various departmentswould nominatepersons responsiblefor their own part of the project (sub- project). These persons, who can be the respectivemembers of the PMU, would act as coordinatorsof departmentproject activitieswith the PMU.
3. The functionsand responsibilitiesof these sub-projectimplementation coordinators would be to:
a. ensure the timely and proper implementationof their sub-projects;
b. liaise with the PMU and seek procurement adviceand/or other advicefrom the PMU to perform (a) above;
c. prepare all detailed and technical specificationsand documents for the procurementof works and goods, and submit them to the procurement specialist in the PMU for clearance;
d. prepare terms of reference and draft contractsfor all consultants and submit them to the PMU for approval and further processing;
e. submit to the PMU related contribution to the quarterly project progress reports, as applicable; and
f. at the completionof their respectiveproject component,submit to the PMU previously specified informationfor the project completionreport. Annex 1 Page 3 of 5
TERMSOF REFERENCE
GOVERNMENTOF ROMANIA
MINISTRYOF TRANSPORT
NATIONALADMINISTRATION OF ROADS
SECOND ROADS PROJECT
TECHNICAL ASSISTANCETO PROJECT IMPLEMENTATIONUNIT
JUSTIFICATION
Target Sector: The Government of Romania (GOR) has applied for loans from three International FinancingInstitutions (IFIs) namelythe InternationalBank for Reconstructionand Development(IBRD), the European Bank for Reconstructionand Development(ElIRD), and the European InvestmentBank (EIB), in various currenciestowards the costs of the SecondRoads Project ("the Project"). The Project consists of improvingoperations in the road infrastructuresector through various actions implemented by the NationalAdministration of Roads (NAR) and the various ministries involved in road safety. In essence, the Project shall consist basically of reconstructingand upgrading approximately1,000 km of NationalRoads, provision of equipment, institudior-ialdevelopment and road safety improvement.
RecipientInstitutions: The Executing Agencyfor the roads rehabilitation,institutional development and provision of equipment and materials componentsshall be NAR and the InterministerialCommittee on Road Safety (ICRS) shall be responsible for the implementadionof the road safety component. The funding contribution of the IFIs is estimated in the region of 355 million of US$, while the local contribution shall be approximately 155 million US$. The programme PHARE of the European Community is expected to participate in the cofina:uLirIglcr an amount of about 15 million US$, addressingmainly the institutionaldevelopment.
General Description of NAR: The public road network in Romaniahas a length of 153,000 km and comprises approximately 15,000 km of national roads which are administered by the National Administrationof Roads, whereascountry and communalroads ire administeredby provincialauthorities.
The NAR is a regie autonomewith autonomousmanagement under the Ministry of Transport (MOT). It is staffed with approximately15,000 employeeslocated both at headquartersand in 7 road and bridge regional divisions. Each regional division is managedby a gull director and a deputy director chief engineer.
At the headquarterslevel the NAR is divided into five specializeddepartments (Maintenance Division, Externally Funded Projects Division (DEFP), MotorwaysDivision, TechnicalDivision and Economic Affairs Division). - 43 - Annex 1 Page 4 of 5
The budget of the National Administrationof Roads is in the region of 500 billion of Lei. The main activity of NAR has shifted in the recent years from one of constructingroads and bridges to one of planning, setting construction,maintenance and safety standards and specifications.
Project Management. To manage, administer and coordinate the First Road Project, a Project ManagementUnit has been established within the NAR. Its members include a Chairman and other representativesin a managerialposition of (i) the NAR (ii) the MOF, and (iii) the MOT. The PMU have delegated parts of its day-to-dayfunctions to the Project Implementation Unit (PIU) works whose staff come mainly from the Departmentof ExternallyFunded Projects (DEFP and responsiblefor monitoring and coordinating the activities of the Project until its completion, including the one-year guarantee maintenanceperiod for civil). Such an arrangementwill be maintainedduring the SecondRoads Projects and the PIU will liaise with the IFIs in all matters concerningProject implementationand supervision.
Ever since its establishmentPIU has been supported by external expertise and procedures have been prepared and implementedto improve Project management.
The NAR intend to recruit consultants to assist in the completionof the First Road Project and in the implementationof the SecondRoads Project.
Obiectives. The main objectives of the assignment will be to provide assistance to the Project ImplementationUnit (PIU) establishedwithin DEFP to enable it to undertakethe function of planning, operating and monitoring during the period 1997 through to 1998.
Now that the PMU operates in an orderly manner the technical assistance is no longer required on a permanent basis and the consultants selectedfor this assignmentwill be expectedto staff the PIU on a part-time basis in order to ensure efficient executionof the Project.
Scope of tasks:
- complement,if appropriate, the system of procedures used by PIU staff;
- adviseDEFP on the needto modifythe existingorganizational PIU structure, given the upcoming Second Transport Project;
- advise on civil works, equipment and consultants services procurement and ensure that IFIs guidelines are met;
- assist PIU in the review of proposal and tenders, contracts, specificationsand study reports; in particular with respect to ongoing pre-investmentstudies assist DEFP in commentingperiodic reports;
- follow up civil works physical progress and design automated system to periodically monitor progress;
- liaise with project supervisorsand contractors,as may be necessaryto resolve difficultiesas they arise, and to ensure the smooth progress of the project; - 44 - Annex I Page 5 of 5
assist with the implementationof IFIs' loan covenants such as the Road User Fund and the privatizationof road maintenance;
followup the developmentof training operationsconducted by a foreign consultantand comment on progress;
assist with the production of project completionreport as required by the IFIs and the ministries of Finance and Transport;
provide assistanceand liaison to visiting IFIs missionsas necessary; and
assist with the preparationof Work Programmesdue under PHARE procedures;
assist and provide expertisein financial administrationof contractsincluding procedures to deal with price variations;
follow up loans managementand ensure that loan funds are used in the more efficient manner, in particular, assist with the preparation of appropriatedisbursement schedules;
advise on preparation of local counterpartbudget;
assist in the production of annual project audit reports to the IFIs;
assist in submitting to IFIs disbursementapplications on behalf of the beneficiary agenciesor departments;
liaise with local banks to monitor and supervisethe project accounts;
organize training programmes abroad on such areas as contract management, accounting, development of new technologies in the road and bridge construction. The Consultant is requested to provide a budget of 27,000 ECU for training activities abroad in its financial proposal;
- propose personnel to attend training programmes; and
- implementsuch programmes with the approval of NAR.
Expertise required. It is envisagedthat the appointedconsulting firm will provide short term expertise at least in the areas of (a) contract managementand accounting;(b) procurementof goods and services; (c) construction and maintenanceof roads and bridges by contract; (d) quality assurance and quality control; (e) road safety aspects; (f) construction industry organization; and (g) institutional and organizationalarrangements.
Staff input and time frame: It is currently envisaged that this assignment will require at least two specialist advisors in the followingareas: contracting, road engineeringand construction,finance, IFIs procedures, and claims by contractors Intermittentinputs on an "as and when required basis" over the period from 1997 through to 1998 shall be provided, amountingto an estimated total of 6 staff months. - 45 - Annex 1 Page 6 of 5
They will be supportedby a team of local experts, providing intermittentinputs amountingin total to 12 staff months. Their expertise should replicate that provided by the expatriateteam.
OrganizationArrangements. The NAR will provide to the Consultantsa furnished office and access to internationalphone/fax for the duration of the services. The Consultantsare requested to provide the following equipment(to be left with NAR-PIU at the end of the contract):
1. Laser printer 2. Computers PC (IBN compatible)with at least: 486 DX 66 Mhz processor 500 MB HDD 8 MB RAM with relevant softwares: 6 WINDOWSand MICROSOFTOFFICE 1 photocopier
Reporting: The advisoryteam shall participateand assistthe PIU for the production of the following reports:
(1) quarterly report to each InternationalFinancing Institution; (2) monthly reports to the Ministry regarding the progress of works and disbursements; (3) preparationof PHARE work programmes; (4) any report required by any of the institutionsmentioned above. - 46 - Annex 2 Page 1 of 3 PROCUREMENTPLAN: ROMANIA - SECOND ROADS PROJECT (BRD-flnanced elements only)
1 2 3 4 6. Estinmted schedule
Description' Type2 No. of Procure- Prequali- Document Invitation Contract Contract slices/ ment fication Preparation to bid signing Comple- items/sub- Method' tion packages'
Road Rehabilitation Works CW 3 ICB 7/16/96 03/30/1997 01/10/1998 06/10/1998 06/10/2002 1997 >S10mIII
Road Rehabilitation Works CW 6 ICB SEE ANNEX 6, PAGE 73 FOR ALL DATES. 1997 Road Rehabilitation Works CW 7 ICB 1998 < SlOm Bridge Repair CW 49 NCB Black Spots CW 21 NCB Works for Pilots CW 2 NCB Road Maintenance G 5 ICB No Equipment Laboratory Equipment G 4 IS No Bridge Materials G 4 ICB/IS No Road Sign Materials G 3 ICB No Supervision C 1 SLF N/A Road & Bridge Design C 10 SlF TA for Institutional C 3 SLF Improvements File name: m:cjl\rom\sar\procurl .tab 1 Name of Package 2 Indicate CW (for civil works); S&1 (for supply and install); G (for goods); TK (for turnkey); CF (for consultant firms); CI (for Individual consultants); TR (for training). The type is related to the use of the relevant standard bidding documents. 3 If known indicate number of slices, major items or subpackages expected in the package. 4 Indicate ICB, LIB, NCB, IS, NS, DC (for Direct Contracting), FA for (Force Account), MW (for Minor Works), SLF (for short-listing of consultant firms); SLI (for short-listing of individual consultants); SSF (for Sole sourced of consultant firms); SS1 (for sole sourcing of individual consultants); Other (for recurrent costs procured on the basis of administative procedures based on a schedule and budget acceptable to the Bank); CB (for Community based work based on guidelinesand procedures acceptable to the Bank); CP (for commercial practices adjudged acceptable to the Bank); NBF (Not Bank financed). ROMANIA: SECOND ROADS PROJECT Procurement Information Section 1: Procurement Review ($ millions) Element ICB NCB is Consultants Other Methods 1. Procurement SBD W SBD - SC SBD - Goods SFC - CS None presently method thresholds (All road rehab. (All bridge rehab., black spots, linear (Road and Lab (All consulting foreseen. ($ million) works and major village and DN work in individual equipment in assignments) equipment) contracts not to exceed $1,000,000 up to individual contracts $40 million) up to $300,000 not to exceed $3,500,000) 2. Prior Review All First 2 of each group First 2 .1 Firms % Loan mount subject to prior review 75 .05 Individuals 3. Expost Review Explain briefly the ex-post review mechanism: Contracts not reviewed prior to bidding will be reviewed in the field prior to the first disbursements. Trained staff exist in the Resident Mission for this task, who will also assist with prior review: -I Section 2: Capacity of the ImplementingAgency in Procurement and Technical Assistance Requirements 4. Brief statement: AND is implementing the ongoing project very well. A Good unit has been built up for preparation of contract documents: bid evaluation and contract management are satisfactory. EU-PHARE will finance T.A. to the PMU in project management including procurement. They will also assist the PMU established in SICRS, which will act as the procurement unit for the various agencies in the Traffic Safety Programme being financed by EU-PHARE. This unit will also benefit from the PHARE office in MOT. RAR has sufficient experience to handle its PHARE-financed equipment purchases gained during the current project. 5. Country ProcurementAssessment Report or Country Procurement 6. Will the bidding documents for the procurement actions of the first Status: year be ready by negotiations? (D xD DraftReport due bv: June '97 Yes lNo LJI If not. why: o ROMANIA: SECOND ROADS PROJECT Procurement Information (cont'd) Section 3: Training, Information and Development Procurement 7. Estimated date of Project 8. Estimated date of 9. Indicate if there are 10. Domestic Preference for 11. Domestic Preference for Launch Workshop publication of General contacts subject to mandatory Goods Works, if applicable ProcurementNotice SPN in Development Business 9/97 7/16/96 (A) Yes No Yes No Yes No [9 6. Retroactive Finance 7. Advance procurement Yes No [ Explain: Biding for some works and Yes E] No Explain: appointment of consultants may LJ precede loan signing. Disburse- ment would not exceed 10% of loan amount. 10. Explain ht iefly the Procurement Monitoring and Information System: PIlU/ProjectManagen,;en( Consultanits will maintain a data base of procurement l actions, ard -ontract management. Task Manager/ProcurementAnalyst will maintian similar system at IBRD'HQ based on information passed 'y RIIR who will receive all updates to PIU's data base. Section 4: Procurement Staffing 11. Indicate name of Procurement Staff part of Project Team: Division: Extension: Jeremy Lane, Task Manager & Focal person ECIIN 32493 Anca Dumitrescu, Project Officer ECIRO 250 (Tel. 401-210-1804) Irina Luca, Procurement Officer ECIIN 87092 12. Explain briefly the expected role of the Field Office in procurement: Task Manager will delegate initial review of all procurement documents (ICB, NCB, IS) for which prior review is required. Ms. Dumitrescu of EC IRO who has taken many Bank procurement courses and has attended the month-long Turin ILO course will review all new procurement documents and draw to the attention of the Task Manager to anything not in keeping with SBDs. She will also be involved with post review of black spot and bridge repair contracts, after review in Washington of the first packages of each type, and will also review ICB documents not reviewed prior to bidding, before the first disbursement. > m:\cjl\rom\roads.doc rD X a - 49 - Annex 3 Page 1 of 8 ROMANIA SECONDROADS PROJECT TRAFFICSAFETY PROGRAMME ProjectDescription 1. Objectives The activities within the traffic safety component aim to reduce the amount of road traffic accidents in accident "black spots" to an acceptable "standard" level for Western Europe and by increasingthe efficiencyof educationand law enforcementto gradually improve the conduct of drivers and other participants in traffic so as to reduce the rate of road traffic accidents. The project would provide the required traffic safety know-howfor producing and monitoring a Traffic Safety Plan for a 10 year period 2000 - 2009, which when implementedwill reduce the amount of serious accidentsby at least 40% (saving the lives of 1,100 Romaniansand keeping 3,200 Romaniansfrom being injured in traffic accidentsannually). The project aims at establishinga permanentframework and a program for traffic safety research and development(R&D) to support further improvementof traffic safety. It is expectedthat funding will be provided through the PHARE programme. 2. The trafMicsafety component consists of: 2.1 Eliminationof traffic accident "black spots" Traffic accident "black spots" are locations on the road network where the amount of traffic accidents substantiallyexceeds the average amount of the same type of accidents occurring in similar traffic conditionselsewhere. The "black spots" are evidence of poor traffic environmentand should be eliminatedurgently. Recent statistics indicate that a substantialamount of accident "black spots" exists on the rural as well as the urban road network in Romania. An substantial part of "black spots" are locatedwithin the typical "linearvillages" with mixed motorizedand non-motorizedtraffic using the same carriagewayand uncontrolledaccess from the plots to the main road. The project wouldprovide technicalassistance to NAR for identificationof accident"black spots" on the national road network and definitionof the causesfor accident accumulation.Technical assistance would also be provided for compilinga priority program for improvingthe traffic environmentand for advising and supervisionof technicaldesign of the safety measures required in each "black spot". The accident "black spot" eliminationprogram would address the problems causing accidents in prioritized road locations in most of the 41 regions but special emphasis would be put on identification and implementationof alternativesolutions for "black spot" eliminationand studies related to the impact of such designs in 6 regions, where the accidentrates are high and which can be studied in connectionwith the rural and urban pilot projects (ref. 2.3, 2.4 and 2.5). The pilot projects would provide the required technical support for the research and development needed in connectionwith such studies. - 50 - Annex 3 Page 2 of 8 The proposed loan to NAR would be used for technicaldesign and implementationof the civil works program. Technicalassistance will be provided to assist NAR with compilinga draft "black spot" eliminationprogram for 1997 which would be based on systematic "black spot" identification,accident analysis, impact assessmentand cost/benefit evaluations. Assistancewould also be required for related technicaldesign. Technicalassistance for identifyingand evaluatingthe "black spot" eliminationprogram for 1998 would be provided through the twinning arrangement(ref. 2.9). The PIU at NAR would procure and supervisethe required consultants' services defined in the Terms of Reference (ref. annex 5) and the civil works. The World Bank would provide technical expertise for supervisionof the urgently needed cofinancedconsultants' services. Implementation Schedule Technical assistancefor "black spot" identification, 9/97-3/98 $150,000 accident analysis, programmingand design Japan (PHRD) Site studies, final technical design and programming 9/97-4/98 GTA ($150,000) Civil works and supervision 6/98 - 10/99 $8,500,000 2.2 Improvementof technical vehicle standards The total registeredfleet of motorized4-wheel or larger vehicles excludingtractors is 3,019,000 and the averagerate of annual growth exceeds 7%. The main part of the vehicle fleet is old and a poor level of maintenancecombined with lack of vehicle inspectioncapacity has droppedthe technicalstandard of the vehiclesto a level which is below satisfactorywhen comparedwith Western European standards. Many accessories,which are mandatoryand therefore standard equipmentof Western Europeanvehicles or recommendedas provisions in order to provide a better technicalsafety level for the driver and the passengers, are still missing or if providedof extremelypoor quality.The consequenceis both reluctance and ignorance related to use of them. Extensive environmentalproblems related to emissions from vehicles also need to be solved urgently. Assistanceto the RomanianAutomobile Registry (RAR) would be used to define and purchase laboratoryequipment for testing vehicleemission levels, safety and noise. The laboratory wouldbe used for homologationof vehicles and equipmentto required standard. The homologationwould gradually improve the technicalstandard of vehicleson the road and contributeto solvingproblems related to traffic safety of vehicles, noise and pollution. Technical assistance would be required for (i) assessing the needs of Romania related to harmonization of vehicle homologationto EU and EEC guidelinesand; (ii) identifyingtests andhomologation equipment requirements.The twinningarrangement (ref. 2.9) would later on make availabletechnical assistance for institution developmentie. reviewing and assessingthe requirement of developingthe organizationof vehicle inspectionand all registries related to vehicle use. EU-Phare would be expected to provide $ 3.83 million for financing the required procurement of homologationequipment. - 51 - Annex 3 Page 3 of 8 RAR would, assisted by the consultant specify, procure and supervise the delivery of the vehicle homologation equipment in accordance with EU-Phare procurement guidelines. RAR has drafted the Terms of Reference (TOR) for the consultingassignment. ImplementationSchedule Technical assistance 9/97-12/97 $50,000 bilateral aid or trust fund |Procurement of equipment 2/98-6/98 $3,830,000 2.3 DN Traffic safety pilot project: "Bucharest-Ploiesti-Sinaia-Brasov" The pilot project is composedof (i) studies and analysesof the present traffic safety situationon the pilot road; (ii) implementationof non conventionallow cost activitiesfor addressingthe causesfor accidents; (iii) implementationof advancedtraffic surveillanceand road user informationtechnologies; (iv) intensifiedwell coordinatedaccident emergencyintervention; (v) local accident board activities;(vi) installation of a pilot road weather information system (RWIS); (vii) improved preventive winter maintenance;(viii) traffic safety research and development(R&D); (ix) intensifiedpublic traffic safety campaigns.The pilot will demonstrateand studythe impactof the numerousactivities and actionson road user behavior, measure the impact on frequencyand consequenceof differenttypes of accidentsand give a sound background for traffic safety developmentby extendingthe traffic safety experienceand know- how of the participants the SICRS, the NAR, the Traffic Police, the Ministry of Health, the research instituteINCERTRANS and local public authorities.The pilot will be coordinatedand monitoredby the ICRS and implementedby the entities responsiblefor the individual activities.Technical assistancefor planning and executionof the pilot is provided through the twinning arrangement (ref. 2.9). The proposed loan would provide financing to NAR for procurement of required studies and analysis, technical design, civil works, equipment/installations,materials and research/reporting.The financingof the equipmentrequired by the Traffic Police for this pilot to intensify accident intervention and road user informationis expected to be provided by EU-Phare and is part of the planned support for traffic law enforcement(ref. 2.6). The costs of equipmentrequired to improve accident emergency interventionand start local accidentboard activitiesamounts to $100 000 and would be financedby EU- Phare. NAR would procure the consultants' servicesfor studies, analysis, research and reporting from INCERTRANS which is nominated to be responsible for all local traffic safety study- and research activities. Supervisionof the consultants' services would be a joint undertaking by SICRS and NAR. NAR would procure and supervise all investment related technical design, civil works, road equipment/installationsand materials required for executionof the pilot. The trafficpolice would specify and procure the equipment required to start local accident board activities. The SICRS would with assistancefrom the Ministryof Health specifyand procure the equipmentneeded to improve emergency intervention. - 52 - Annex 3 Page 4 of 8 Implementation Schedule Site descriptionby SICRS/NAR/INCERTRANS 10/97 NAR Studies and analysis/pilotdesign 2/98 - 5/98 GTA ($70,000) Procurementof equipment 2/98 - 5/98 $100,000 Improving signs and road markings 5/98 - 10/98 $1,600,000 Implementationof developedtechnologies 5/98 - 10/98 $1,700,000 Installationof RWIS and adaptingpreventive maintenance Follow up, research and reporting 10/98 - 12/2000 (GTA) $30,000 2.4 Bucharest traffic safety pilot proiect The pilot would be composedof (i) studies and analysesof the present traffic safety situationin an identified residential area and along a main street in Bucharest where the light traffic accident rates are exceptionallyhigh; (ii) planning and implementationof low cost traffic safety improvementsie. advanced traffic surveillance, improved signing and guidance of traffic; (iii) improved traffic arrangementsfor pedestrians and other non motorizedtraffic and; (iv) follow up & research. The pilot would aim at creating models and masterplansfor improvingthe traffic environmentof light traffic to be used generally within urban areas. EU-Pharewould be providingfinancing for technicaldesign and procurementof the civil- and installation work. Technical assistance for pilot preparation would be availablethrough the twinning arrangement (ref. 2.9) The traffic division of the Municipalityof Bucharest would procure and supervisethe technicaldesign as well as the civil- and installationwork. Implementation Schedule Studies, pilot planning and design 9/98 - 2/99 GTA Follow up and research 10/99 - 12/2000 ($150,000) | Civil works and installationsin Bucharest 6/99 - 10/99 $1,100,000 Annex 3 Page 5 of 8 2.5 Linear village traffic safety pilot project The pilot project would be composedof (i) studies and analysis of the traffic environment for pedestrians and other non motorized transport in an identified typical linear village; (ii) planning and implementingcost efficient traffic safety improvements; (iii) testing the feasibility of using advanced technologiesto improve driver conduct in built up surrounding and; (iv) research. The pilot would aim at creating a model for developinga safer traffic environmentfor pedestriansand non motorizedtransport in locations where the construction of by-passes to separate transit motorized transport from local motorized and non-motorizedtransport is not feasible. The technical assistancerequired for final studies, pilot planning and technicaldesign as well as for all pilot related follow up and research would be provided through the twinning arrangement (ref. 2.9). NAR would procure and supervisethe technicaldesign and the civil- and installationwork in accordance with IBRD guidelines for NCB and ICB. Implementation Schedule Studies, pilot planning and 2/98 - 8/98 GTA (US$70,000) design Follow up and research 10/98 - 12/99 Civil works and installations 6/98 - 10/98 $ 1,100,000 2.6 Traffic law enforcement The driving behavior of vehicleoperators is deteriorating.Some part of this could be due to the liberation from the previous regime and some part due to a steady increase in the number of new unexperienced drivers (+8%/year). The main reason for driver misbehavior is however increasing ignorance compounded by lack of efficient traffic surveillance. The project would provide equipment and accessories to the Traffic Police for general traffic surveillance, road user information, speed control and alcotesting. EU-Phare financing of $4.0 million would be requested for the procurement of the equipment consistingof (i) patrol vehicles; (ii) communicationequipment: (iii) speedradars; (iv) mobile information displays and signs and; (v) alcotesters. The Traffic Police will specify and procure the equipment. Technicalassistance for specifying the equipmentwas provided using the Finnish CTF for Eastern Europe. Implementation Schedule l Technicalspecification of equipment 7/96 - 10/96 CTF Actual $ 4,800 Procurementof equipment 10198- 6/99 $4,000,000 - 54 - Annex3 Page 6 of 8 2.7 Educationand driver training: Public school pilot The pilot would facilitatethe start of traffic safety educationin 10 pilot schools. The education would be provided to the pupils attending 3 separate levels starting from the youngestgroup of pupils. One part of the pilot would be to prepare for future driver's training to be obtained voluntarily in connectionwith public education.The aim of the pilot would be to develop traffic safety educationfor children in order to improve children's behavior in traffic and reduce the amountof accidentsinvolving children and new young drivers. The costs of the pilot would amount to $200,000 which would be financedby EU-Phare. The pilot would provide materialfor trafficsafety education.Technical assistance required for pilot planning, studies, follow up and reporting would be provided through the twinning arrangement. The SICRS would be assisted by the Ministry of Education,procure and supervisethe delivery of equipment. Implementation Schedule Pilot planning and design 2/98 - 4/98 GTA Follow up and reporting 9198 - 12/99 (US$25,000) Procurementof equipmentand material 2/98 - 4/98 $200,000 2.8 Strengtheningthe secretariatof the ICRS (SICRS) The capabilityof the SICRSto prepare the ICRS meetings, to monitorand to coordinatetraffic safety activitiesis hamperedby the lack of experiencedstaff and equipment.Technical assistance to make up for the lack of experience, know how and monitoringtools will be provided through the twinning agreement(ref. 2.9). This componentwill provide the most urgent equipmentrequired by the secretariat to enable it to perform properly. The SICRS would specify andprocure the equipmentconsisting of one vehicle, 4 computerswith modems and one photocopierin accordancewith EU-Phare guidelines. EU-Phare would be requested to finance the procurementamounting to $120,000 Implementation Schedule || Procurementof equipment | 2/98 - 4/98 $120,0000 -- 55 Annex3 Page 7 of 8 2.9 General Technical Assistancefor Traffic Safety (GTA) The major part of the technical assistance required for the traffic safety componentwould be provided as arrangements with established appropriate institutions, administrationsand consultants working in the field of traffic safety. This arrangementwould make up for the lack of staff experienced in traffic safety work in the ICRS, the secretariatfor ICRS and all traffic safety entities. The objective would be to, during the GTA period ending in December 1999, establish the tools and transfer the know how required for the monitoring of traffic safety on ICRS level and in cooperationwith ICRS and the individual entities produce a Traffic Safety Plan 2000 - 2009 which will reduce the serious traffic accidents by 40% when implementedcompletely. The GTA arrangement would provide traffic safety expertise and related services from a group of entities covering the pluridisciplinaractivities related to improvementof traffic safetyfrom a countrywith distinguishedrecords of traffic safety achievementfor: (i) institutionaldevelopment; (ii) reviewinglegislation and law enforcement:(iii) monitoringtraffic safety development;(iv) improvingdriver's training; (v) improvingtraffic safety educationand information;(vi) design, planning and follow up of pilot projects; (vii) transfer of know how by arranging visits abroad; (viii) traffic safety research and development(R&D) and (ix) developingand launchingthe TrafficSafety Plan 2000-2009. The total costs of the GTA would amount to $1.7 million and would be financedby EU-Phare. The technical assistance would consist of expert services (minimum 48 man months), training and workshops, study tours abroad, equipmentand materialrelated to provision of the Services for a period of 2-3 years. The ICRS would, using standard EU-Phare procuring procedures, procure and supervise the technical assistanceservices defined in the drafted Terms of Reference (ref. annex 5). Implementation Schedule Procurementof services 9/97-12/97 l Provision of technical services 1/98 - 4/2000 $1,700,000 3. Performanceindicators (outcome/impact)for traffic safety development 3.1 Eliminationof accident "black spots" 1. Calculatedimpact of annual programs financed through the loan ie. reduction of fatalities and injuries. 2. Recorded annual reduction of fatalities and injuries in "black spots" after implementation 3.2 Improvementof technical vehicle standard 1. Developmentof homologation 2. Repair orders issued at random road side inspection - 56- Annex- Page 8 of 8 3.3 DN Traffic safety pilot project: "Bucharest-Ploiesti-Sinaia-Brasov" 1. Recorded annual change in number of fatalities and injuries within the pilot area 2. Amount of fines and reminders issued to drivers 3. Amount of R&D project proposals 4. Level of winter maintenance 5. Amount and quality of local accident board reports/initiatives 3.4 and 3.5 Bucharest traffic safety pilot and Linear village traffic safety pilot 1. Change in number of serious accidentsinvolving light non motorizedtransport 2. Level of trafficsafety knowledgeand behavior (basedon interviews/questionnaires) 3. Client satisfactionlevel (based on interviews/questionnaires) 4. Amount of R&D proposals 3.6 Traffic law enforcement 1. Number of fines/punishmentsfor speeding and drunken driving 2. Number of serious accidents caused by imprudentdriving 3. Number of road side inspections(days/location) 3.7 Education and driver training: Public school pilot 1. Developmentof traffic safety knowledge(before/during/after tests) 2. Number of traffic accidentsinvolving children from the pilot schools 3.8 Strengtheningof the secretariat of ICRS 1. Capacity and efficiency in monitoringtraffic safety - amount and qualityof ICRS meetingsand TS workshops 2. TS research development 3. Change in number of registeredtraffic accidents 3.9 Twinning services 1. Level of traffic safety commitmentand know how within all traffic safety entities 2. Availabilityand quality of the Traffic Safety Plan (TSP) 2000-2009 3. Quality of Traffic Safety Seminar/launchingof TSP 2000-2009 File name: m:\cjl\rom\sar\annex3 - 57 - Annex4 Romania Second Roads Project Monitorable Indicators BORROWER UnleadedPetrol Action Plan A. Prepare and Submit Action Plan by: December 31, 1997 by year's end 1997 1998 1999 2000 2001 2002 2003 B. Average Lead Content of Leaded Petrol (gm/L) 0.45 0.30 0.30 0.30 0.30 0.15 0.15 TrafficSafety Programme by year's end 1997 1998 1999 2000 2001 2002 2003 Number of Black Spots treated (cumulative) 0 10 20 30 40 50 50 % accident reduction at selected treated spots' 1 year after treatment: Predicted 50% Actual Year Severe Fatalities Total Overall Accident Rate 1996 620 200 7600 in Pilot Study Area2 2000 500 160 7000 NATIONALADMINISTRATION OF ROADS(NAR) Axle Load Control A. Complete installation and commissioning of September 30, 1997 nine (9) automatic weight in motion stations B. Collect data for 12 month period from October 1, 1997 to September 30, 1998 C. Make recommendations on a system for axle December 31, 1998 load monitoring and control Roadand BridgeRehabilitation by year's end 1997 1998 1999 2000 2001 2002 2003 Number of Road Contracts awarded (cumulative) 2 6 9 9 9 9 9 Number of Kilometers completed (cumulative) 0 0 50 75 125 250 300 Number of Bridge Contracts awarded (cumulative) 10 10 20 30 50 0 Number of Bridges rehabilitated (cumulative) 0 6 12 28 30 50 50 Spots will be chosen where good site- and cause-specific "befoic" accident data exist. 2 Bucharest-Brasov Road m:\qc\rom\sar\annex4.xis - 58 - Annex 5 Page 1 of 14 ROMANIA SECONDROADS PROJECT TECHNICAL SERVICESFOR - ACCIDENTBLACK SPOT IDENTIFICATION, - ANALYSISAND - RECTIFICATION TERMS OF REFERENCE BACKGROUND 1. The road networkand trafric The road infrastructurein Romania, consistingof 113 km of motorways, 14 570 km of national roads, 26 167 km of county roads and 31 166 km of department roads, is highly deteriorated due to insufficientfunding of required reconstructionand rehabilitation. Budgetary constraintshave lately continuedto reduce the resources allocatedto roads also leadingto a growing backlog of the rnationaland local road network maintenance.Traffic performance is growing steadily due to increasedneed for domestictransport of goods, growth of transit traffic and increasedcar ownership (8..9% annually). A total amount of 3 million vehicles and 320 000 motorcycles and scooters are registered. The amount of vehicles is still very low seen against a populationof some 23 million and leaves plenty of room for additionalgrowth in the number of cars. 2. Traffic accidents The traffic safety situation in Romania is very poor by internationalstandards. A total of 115 103 accidentswere recorded in 1995and 9 334 of these were rated as serious accidentscausing fatalitiesor injuries to the victims. The fatality rate is extremelyhigh; 9.4 fatalitiesper 10 000 vehicles, 37 fatalities per 100 injured and 1.22 fatalities/10000 inhabitants. The traffic accidentsare estimatedto accumulatetotal costs rising close to 2% of the GDP. A substantialincrease (+ 37%) in the total amount of traffic accidentswas recorded in 1995 comparedto 1994 although the amount of serious accidentswas slightly reduced (- 3%). The amount of traffic accidentsis likely to continue increasing, due to growing traffic volumes, unless steps are being taken to systematicallyimprove the traffic environmentand reduce all other main causes for traffic accidents within the frameworkof a long term Traffic Safety Plan. 3. Traffic safety development The institutionalframework and commitmentfor traffic safety improvementexists in Romania today. The Minister of Transport initiatedthe establishingof the InterministerialCouncil for Road Safety (ICRS) in the beginning of 1995. The Council, chaired by the Minister of Transport, assembles4-5 times per year. The meetings are prepared by a PermanentSecretariat (SICRS)headed by Director Ion Marin. The members of the ICRS are leaders or authorizedrepresentatives of 11 - 59 - Annex 5 Page 2 of 14 ministries, the Department for Local Public Administrationand the Local Council of Bucharest Municipalityand the activitiesof the ICRS are coordinatedby the Prime Minister. Representativesof territorial units of local public administrationsand related NGOs may be invited to participate at the debates of the ICRS and of the S Special Traffic Safety Commissions(S7SC), establishedin 1995 in connectionwith the ICRS. The SICRS with 4 staff members is getting prepared to gradually start monitoringand coordinatingall traffic safety activities.The 5 Special Commissionsare composedof ICRS members and experts of public authoritiesrepresented in the ICRS. The commissionsdebate and initiate activities within specifiedindividual traffic safety sectors to raise the awarenessof the ICRS of measures required for addressingcurrent traffic safety problems. The ICRS elaborates and submits priority action programs and proposals for their financingto the decision makers as well as supervises draft legislationand formulatesrecommendations in the field of traffic safety. A preliminary Priority Actions Programfor 1996 - 2000 has been drafted based on proposals made by the commissionsand has been debatedby the Council. 4. Traffic safety dericienciesand problems Defining the objectivesand targets for traffic safety promotion, improvingthe cooperation between the various entities involvedand establishingperformance indicators for monitoringtraffic safety activities requires the attention of the ICRS and a clear logical framework. Assignmentof responsibilitiesneeds adjustmentto ensure that all major aspects are being covered. A lack of staff experiencedin traffic safety work, lack of necessary equipmentand lack of sufficientfunds hampers all systematictraffic safety developmentin spite of the present efforts of the Traffic Police, the Romania AutomobileRegistry (RAR) and the SICRS to in compliancewith the PriorityActions Program. (i) improve the quality of accidentdata (new accidentdata collectionformat); (ii) increase the availabilityof accidentdata (statistics and publications); (iii) distribute regular traffic safety informationusing the press, radio and TV; (iv) improve technicalvehicle standards (vehicle inspection); (v) improve traffic regulations(new road code); and (vi) increase visibility of traffic surveillance. 5. The Romania Second Roads Project The Governmentof Romania in cooperationwith IBRD, EBRD and EIB is executinga TransportProject and preparing a Second Roads Project both aimed at improvingthe physical condition and the traffic environmentof a significant part of the national road network. The costs of the Romania SecondRoads Project will be in the range of $ 500 million. This project is composedof road rehabilitation,procurement of equipmentfor maintenance,institutional development and a comprehensivetraffic safety componentof $ 24 million. The financingof the traffic safety - 60 - Annex 5 Page 3 of 14 componentis planned to be a joint undertakingbetween IBRD, EU-Phare and the main beneficiary the Romania Road Administration(NAR). The traffic safety componentis split into two separately financed subcomponents. a) an investmentprogram financedby IBRD, and b) a program of Institutionaldevelopment and technical assistancefor all the entities involved in traffic safety planned to be financedby EU-Phare. 6. The Trafric Safety Component The Traffic Safety InvestmentProgramme of $ 14 100 000 covers the engineering componentsof the list of activities proposed to be performed: (i) eliminationof traffic accident "black spots"; (ii) installationof intelligent surveillanceand informationsystems along the Bucharest- Ploiesti-Sinaia-Brasovroad (DN/pilot 1); (iii) civil works of a pilot project for improvingthe traffic environmentfor non motorizedtransport in a pilot area of Bucharest and a typical "linear village" on the Bucharest-Ploiesti-Sinaia-Brasovroad (pilots 2 and 3); (iv) improvingpreventive winter road maintenanceand installationof a road weather informationsystem (RWIS) on Bucharest-Ploiesti-Sinaia-Brasovroad (pilot 1); and The InstitutionalDevelopment and TechnicalAssistance of $ 10 000 000 will provide equipment,material and technicalservices/assistance for: (i) increasingthe efficiencyof traffic law enforcementand traffic safety information, improvingthe standard of driver's training and improvingthe quality of road traffic accident reporting and registering (accidentdata base); (ii) developingtraffic safety educationfor school children (pilot 4); (iii) improvingaccident emergencyintervention and establishinglocal accident boards in the regions along the Bucharest-Ploiesti-Sinaia-Brasovroad ( pilot 1); (iv) strengtheningthe secretariatof ICRS by providing equipmentfor access to accident data and making availablethe traffic safety services of renowned traffic safety consultantsand institutions(twinning). The goal of strengtheningthe secretariatis to improve its ability to coordinateand monitor the developmentwithin the entire traffic safety sector; - 61 - Annex 5 Page 4 of 14 (v) traffic safety studies and related research & development( pilots 1, 2 and 3); (vi) identificationand analysis of accidentblack spots; (vii) assessingthe impact of alternativetraffic safety measures; (viii) planning and design of "safe" environmentsfor non motorized traffic (pilots 1, 2 and 3); and (ix) vehicle homologation. THE TECHNICAL SERVICES FOR BLACK SPOT IDENTIFICATION, - ANALYSISAND - RECTIFICATION 7. Technical assistanceshall be provided to the RomanianRoad Administration(NAR) for establishing"short" lists of black spots to be rectified within a proposed $ 8 500 000 program of civil works. The rectificationmeasures shall efficientlyaddress the identifieddeficiencies of the traffic environmentin the identified traffic accidentblack spots on the national road network. Special emphasis shall be put on determining non-conventionalmeasures to be tested when addressingblack spots on the pilot road Bucharest-Ploiesti-Sinaia-Brasov.Some technical services are also required as support for supervisionof the technical design of rectificationmeasures. OBJECTIVES 8. The overall objective of the TechnicalServices is to: (i) establish a well-groundedroad traffic accidentblack spot "long list" and a related US$ 8.5 million "short list" by providing the experience,the skills and the methodologyrequired for black spot identificationand analysis; (ii) identify and propose the effective and cost efficient measures for rectifyingthe present deficienciesof the traffic environmentin the "short listed" black spot locations; (iii) ensure that the design of proposed rectificationmeasures meets the targets and the required quality standard; and (iv) transfer the methodologies, skills and know-howof black spot identification,analysis and rectification to the client (NAR). - 62 - Annex 5 Page 5 of 14 SCOPE OF WORK 9. The Consultant(s) will provide technicalexpertise and feasible methodology/systems for identifyingand analyzing road traffic accident black spot locations using the accident data which is computerizedand availablewith NAR and the Traffic Police. This data covers the evolutionof accidents on the national road network since 1989. The data is reliable but does not fulfill all the requirementsof a western European accident data base. The accidentdata base is not yet connectedto a computerizedroad data bank. The Consultant(s)will work in cooperationwith NAR, the Traffic Police and the SICRS when reviewing and revising existing accident "long lists" and establishingthe "short list". The "short list" shall be composedof the top priority black spots to be rectified and indicate the planned measures of rectification. The Consultant(s)'services shall includebut not be limited to: (i) familiarizingthemselves with the general evolution and the causes for road traffic accidents on the national road network in Romania by studying the available accident data at NAR, the Regional Road Administrationsand the Traffic Police; (ii) determining the nature of deficienciesof the traffic environmentwhich are causing the extremely high rate of severe road traffic accidentsin both rural and urban surroundings in Romaniatoday; (iii) reviewing and revising the contentsof existing accidentblack spot "long lists" and the proposed rectificationmeasures. These have been compiled by NAR and the Traffic Police; (iv) establishinga priority "short list" of black spot locationsand rectificationmeasures to be executed as part of the proposed IBRD financedtraffic safety investmentprogram of $ 8.5 million. The "short list" shall indicatepriority order based on assessment of impact and cost efficiency, describe the proposed measures of rectificationand show the costs of the work to be performed. The consultant(s)shall show that the program meets the targets of reducing the total amount of fatalities in the targeted black spot locationsby > 40 and the amount of injuries by > 120; (v) compilinga $2 million black spot rectificationprogram feasible for executionin 1997 and assisting in supervisionof the technicaldesign required for executingthe program. Special attention shall be given choice and design of non conventional rectification measuresto be includedin a R&D program. The executionof this R&D program will be a vital part of traffic safety developmentto be performed as part of pilot 1 Bucharest-Ploiesti-Sinaia-Brasovroad; (vi) specifying the R&D related to above $2 million black spot rectificationprogram; (vii) on-the-jobtraining of the NAR counterpartsto facilitate transfer of related methodology,skills and know-how. - 63 - Annex 5 Page 6 of 14 PROJECTMANAGEMENT AND WORK PLAN 10. In order to successfullyachieve the targets related to the impact of the Black Spot RectificationProgram and facilitate a smooth procurementand execution of the civil works it is important that: (i) ownership and commitmentis strengthenedby deep involvementof the counterpart staff in planning the work to be performed and setting the related targets; (ii) the key counterpartstaff participate in reviewing the existingprograms and take part in site studies; (iii) the counterpartstaff resume responsibilityfor preparation of the required design- and procurement documentsunder supervisionof the consultant(s);and (iv) the SICRS at an early stage is consulted in all matters related to general targets of the program, determinationof priorities and proposals for R&D. TIME SCHEDULE 11. The technicalservices shall commencewithin 1 month from signing of the contract and be completed within a period of 36 months. REPORTING 12. The Consultant(s)shall provide followingprogress reports in 5 copies to the client NAR in Romanian,2 copies to the SICRS in Romanianand 3 copies to IBRD in English. (i) An inception report 4 weeks after commencementof the assignmentcontaining: - a time schedule for completingthe assignment - a draft "long" list of accident black spots - a detailed work plan for compilingthe $ 8.5 million black spot "short list" and the $2 million rectificationprogram for 1997 - commentson any issues that might substantiallychange the targets or influence the completion of the assignment. (ii) A progress report 8 weeks after commencementcontaining: - a final prioritized traffic accident black spot "long list" - a draft for a $ 8.5 million black spot rectification"short list" - a draft for a $ 2 million civil works program for 1997 - individual reports on completedsite studies. - 64 - Annex 5 Page 7 of 14 (iii) A progress report 12 weeks after commencementcontaining: - a final $8.5 million prioritized traffic accidentblack spot "short list" - a final $2 million prioritized civil works program for 1997 addressingdeficiencies in the identified prioritized locations of traffic accident black spots - site study reports. (iv) A progress report 16 weeks after commencementcontaining: - the progress of design of the civil works to be executedin 1997 - a draft civil works procurementplan. (v) A final report containing: - the final $8.5 million traffic accidentblack spot "short list" - impact assessmentand cost-benefitanalysis of the "short list" - the final $2 million prioritized civil works program for 1997 - impact assessmentand cost-benefitanalysis of the 1997 civil works program the site study reports - assessmentof the design- and procurementdocuments for the 1997 civil works program - assessmentof the transfer of methodology, skill and know-howto the counterparts R&Dproposal. RESOURCES 13. The Consultant(s)shall provide the required traffic safety experts and appoint an experienced team leader to complete the assignmentin close collaboration with the Romaniancounterparts. The technical services shall mainly be provided in Romania. The assignment is estimatedto require a minimum of 5-6 man months of expert services. The Consultant(s)shall provide all major equipment needed by the expert(s). The client will, free of charge, make office facilitiesavailable at the RomanianRoad Administrationin Bucharest. These facilities will include task related access to telephone, facsimile and copying equipment. The client will provide for limited transport and interpreter service free of charge. The total financing availablefor the assignmentis $150 000. - 65 - Annex 5 Page 8 of 14 ROMANIA SECONDROADS PROJECT GENERAL TECHNICAL ASSISTANCESERVICES FOR TRAFFIC SAFETY TERMS OF REFERENCE BACKGROUND 1. The road networkand traffic The road infrastructurein Romania, consistingof 113 km of motorways, 14 570 km of national roads, 26 167 km of county roads and 31 166 km of department roads, is highly deteriorateddue to insufficientfunding of required reconstructionand rehabilitation. Budgetary constraintshave lately continuedto reduce the resources allocatedto roads leading to a growing backlog of the national and local road network maintenance.Traffic performance is growing steadily due to increased need for domestic transport of goods, growth of transit traffic and increasedcar ownership (8..9% annually). A total amount of 3 million vehicles and 320 000 motorcyclesand scooters are registered. This is still very low seen against a population of some 23 million and leaves plenty of room for additional growth. 2. Traffic accidents The traffic safety situation in Romania is very poor by internationalstandards. A total of 169 383 accidents were recorded in 1996 and 8 931 of these were rated as serious accidents causing fatalitiesor serious injuries and 11 601 causinglight injuries to the victims. The fatality rate is extremelyhigh; 9.4 fatalitiesper 10 000 vehicles, 37 fatalitiesper 100 injured and 1.22 fatalities/10 000 inhabitants. The traffic accidentsare estimated to accumulatetotal annual costs rising close to 2% of the GDP. A substantialincrease (+ 37%) in the total amount of traffic accidents was recorded in 1995 comparedto 1994 although the amount of serious accidentswas slightly reduced (- 3%). The amount of traffic accidents is likely to continueincreasing, due to growing traffic volumes, unless steps are being taken to systematicallyimprove the traffic environmentand reduce all other main causes for traffic accidentswithin the framework of a long term Traffic Safety Plan. 3. Traffic safety development The institutionalframework and commitmentfor traffic safety improvementexists in Romania today. The Minister of Transport initiatedthe establishingof the InterministerialCouncil for Road Safety (ICRS) in the beginning of 1995. The council, chairedby the Minister of Transport, assembles4-5 times per year. The meetings are prepared by a Permanent Secretariat(SICRS). The members of the ICRS are leaders or authorized representativesof 11 ministries, the Department for Local Public Administrationand the Local Council of Bucharest Municipalityand the activitiesof the ICRS are coordinatedby the Prime Minister. Representativesof territorial units of local public - 66 - Annex 5 Page 9 of 14 administrationsand related NGOs may be invitedto participateat the debates of the ICRS and of the S Special Traffic Safety Commissions(STSC), establishedin 1995 in connectionwith the ICRS. The SICRS with 4 staff members is getting prepared to graduallystart monitoring and coordinatingall traffic safety activities. The 5 Special Commissionsare composedof ICRS members and experts of public authorities representedin the ICRS. The commissionsdebate and initiate activitieswithin specifiedindividual traffic safety sectors to raise the awarenessof the ICRS of measures required for addressingcurrent traffic safety problems. The ICRS elaborates and submits priority action programs and proposals for their financingto the decision makers as well as supervises draft legislationand formulatesrecommendations in the field of traffic safety. A preliminary PriorityActions Programfor 1996-2000has been drafted based on proposals made by the commissionsand debated by the council. 4. Traffic safety deficienciesand problems Defining the objectivesand targets for traffic safety promotion, improvingthe cooperationbetween the various entities involved and establishingperformance indicators for monitoringtraffic safety activitiesrequires the attentionof the ICRS and a clear logical framework. Assignmentof responsibilitiesneeds adjustmentto ensure that all major aspects are being covered. A lack of staff experiencedin traffic safety work, lack of necessary equipmentand lack of sufficientfunds hampers all systematictraffic safety developmentdespite the present efforts of the Traffic Police, the Romania AutomobileRegistry (RAR) and the SICRS to in compliancewith the PriorityActions Program. (i) improve the quality of accident data (new accident data collectionformat); (ii) increase the availabilityof accident data (statisticsand publications); (iii) distribute regular traffic safety informationusing the press, radio and TV; (iv) improve technical vehicle standards (vehicleinspection); (v) improve traffic regulations(new road code); and (vi) increasevisibility of traffic surveillance. 5. The Romania Second Roads Project The governmentof Romania in cooperationwith IBRD, EBRD and EIB is executing a TransportProject and preparing a Second Roads Project both aimed at improvingthe physical condition and the traffic environmentof a significant part of the national road network. The costs of the Romania Second Roads Project will be in the range of $ 500 million. This project is composedof road rehabilitation, procurementof equipmentfor maintenance,institutional development and a comprehensivetraffic safety componentof $ 24 million. The financingof the traffic safety componentis planned to be a joint undertakingbetween IBRD, EU-Phare and the main beneficiary the Romania Road Administration(NAR). The traffic safety componentis split into two separately financed subcomponents: - 67 Annex 5 Page 10 of 14 a) An investmentprogram to be financedthrough an loan agreementbetween NAR and IBRD; and b) A program of Institutionaldevelopment and technicalassistance for all the entities involved in traffic safety planned to be financedby EU-Phare 6. The Traffic Safety Component The TrafficSafety InvestmentProgram of $14 100 000 covers the engineering componentsof the proposed list of activitiesto be performed: (i) eliminationof traffic accident "black spots" (ii) installationof intelligent surveillanceand informationsystems along the Bucharest- Ploiesti-Sinaia-Brasovroad (DN/pilot 1) (iii) civil works required for improvingthe traffic environmentfor non motorized transport in one suburban area of Bucharest and a typical "linear village" on the Bucharest-Ploiesti-Sinaia-Brasovroad (pilot 2) (iv) improvingpreventive winter road maintenanceand installationof a road weather informationsystem (RWIS) on Bucharest-Ploiesti-Sinaia-Brasovroad (pilot 1) The InstitutionalDevelopment and TechnicalAssistance of $10 000 000 will provide equipment, material and technicalservices/assistance for (i) increasingthe efficiencyof traffic law enforcementand traffic safety information, improvingthe standard of driver training and improvingthe quality of accident reporting and registering (accidentdata base); (ii) developingtraffic safety educationto school children (pilot 4); (iii) improvingaccident emergencyintervention and establishinglocal accident boards in the regions along Bucharest-Ploiesti-Sinaia-Brasovroad ( pilot 1); (iv) strengtheningthe secretariatof ICRS by providing equipmentimproving access to accidentdata and technical services of renownedtraffic safety institutionsthrough a twinning arrangement,with the aim of improvingthe coordinationand monitoringof traffic safety developmentwithin all traffic safety sectors; (v) traffic safety studies and related research & development( pilots 1, 2, and 3); (vi) identificationand analysis of accident black spots; - 68 - Annex 5 Page 11 of 14 (vii) assessingof impact of alternativerectification activities;and (viii) planning and design of 'safe" light traffic environments(pilots 1, 2 and 3). (ix) vehicle homologation THE TECHNICALSERVICES 7. Technicalassistance will be provided through a twinning arrangementbetween the newly establishedtraffic safety organization(ICRS) and related entities from the traffic safety sector in Romania and a team of renownedand experiencedtraffic safety consultantsand institutions/administrationsworking in the field of traffic safety from a country with good records of traffic safety development. OBJECTIVES 8. The overall objective of the TechnicalServices are to: (i) make up for the lack of staff experiencedin traffic safety work within the ICRS, the STSC's and the SICRS; (ii) transfer traffic safety know-howand experience;and (iii) assist in establishinga clear frameworkfor all traffic safety activitiesand assigning responsibilitiesto the various entities involved in traffic safety The Services will provide experiencedguidance and fresh know-howfor traffic safety policy making, organizationof activities, developmentand use of accident data bases, traffic safety planning and design, activity impact assessmentand alternativefinancing.The twinning arrangementwill assist the ICRS to produce a long term Traffic Safety Plan (2000-2009)by the end of June, 1999. The plan shall cover the institutionalframework for traffic safety, the logical framework for traffic safety activities, objectives and interim traffic safety targets, a mid term (5 years) program of priority activitiesand list of performance indicators required for monitoring implementationof the Traffic Safety Plan and related programs. The overall target of the Traffic Safety Plan shall be to reduce the amount of fatalities and injuries in traffic accidentsby at least 40% within a 10 year period from the commencementof implementationof the Plan. This target correspondsto similar targets set in many Western-Europeancountries. - 69 - Annex 5 Page 12 of 14 SCOPE OF WORK 9. The Consultant(s) will provide technicalexpertise to all the agenciesinvolved for addressing problems related to: a) the human factor; b) vehicles; c) road infrastructure and carry out these services in close co-operationwith the ICRS, the STSC's and the SICRS. The Consultant(s)will establish and throughout the contract keep available links between the SICRS and the agencies and institutionsteamed up with the Consultant(s).The Consultant(s)' services shall includebut not be limited to: (i) acquaintingthemselves with the procedures of the traffic safety sector and the prevailing traffic safety situation in Romania; (ii) initiating and providing flexible expert services to the ICRS, the STSC's and the SICRS for: - establishinglogical frameworksfor traffic safety development - developingtraffic safety policies, defining objectives and setting targets - developingperformance indicators - assigningresponsibilities - reportingand monitoring (iii) reviewing and initiating improvementsto present traffic safety regulationsand traffic safety related procedures: - traffic legislation - law enforcement - drivers training - educationof school children - informationto road users and the public - accident data collectionand developing/useof accident data bases - identificationof accident black spots - methods for analyzingcauses for accidentsand assessingthe impact of activities aimed at addressingcurrent problems - technicalvehicle standard/inspectionprocedures/harmonization with EU - emergencyintervention - analyzingof serious accidents/establishinglocal accident boards - traffic safety research & development (iv) planning and follow up of urban pilot project "Bucharestsuburb and "linearvillage"; - 70 - Annex 5 Page 13 of 14 (v) assistingthe client in obtainingtraffic safety literature and related material; (vi) assistingthe client in planning and implementingtraffic safety training; (vii) organizingvisits abroad for transfer of skills and know-how; (viii) assistingthe client in compilingtechnical specificationsfor procurementof traffic safety equipmentand related material; (ix) assistingthe client in improvingtraffic safety planning and design; (x) assistingthe client in producing the Traffic Safety Plan (2000 - 2009); and (xi) assisting the client in launchingthe Traffic Safety Plan (2000 - 2009) at a National Seminar. PROJECT MANAGEMENT 10. For the successfuldevelopment of the Traffic Safety Plan it is importantthat: (i) Initial planning. ownership and commitment:The person(s) responsible for each traffic safety sector or subsectorprogram is deeply involved in defining and setting the limits for the tasks he (she) will be responsible, setting the time limits for each identified step of the sector program and commitshim (her)self to the timely execution of the plan. (ii) Project managementsystem: A suitableproject managementsystem shall be provided to enable the managementof the Traffic Safety Plan to describe and in detail follow up and monitor the progress of the plan and its components. The managementsystem shall generate monthly reports to be issued by the management,describe the overall progress as well as the progress of each individualsubcomponent against the set targets of the plan. TIME SCHEDULE 11. The technical services shall commencewithin 1 month from signing of the contract and be completed within a period of months. REPORTING 12. The Consultant(s)shall provide following reports in 10 copies to the client SICRS in Romania, 3 copies to the PIU of EU-Phare in Romania and English and 3 copies to the World Bank in English: - 71 - Annex 5 Page 14 of 14 (i) An inception report 6 weeks after commencementsincluding a report of the existing situation, a revised detailed plan for initiatingtraffic safety sector improvements, a draft time schedule for developingthe Traffic Safety Plan (2000 - 2009) and commentson any issues that might substantiallychange or influence the successfulcompletion of the technicalservices. (ii) Interim progress reports every 3 monthson Consultant(s)initiated activitiesand provision of services requested by the client describingthe situationwithin each sector. (iii) A final report (draft) covering: - descriptionof all activitiesundertaken and service rendered within each traffic safety sector - a summary of the development(changes) within each sector - a descriptionof the evolutionof traffic safety situation in Romania during the contract period - a summary of traffic safety training and study trips during the contract period includingrate of involvementof the Consultant(s) - an evaluationof Traffic SafetyPlan (2000 - 2009) including proposals for further donor involvementin the developmentof the traffic safety sector - a summary of Consultant(s)' conclusionsfrom the Traffic Safety Seminar; and (iv) A revised final report one month later, taking into account reasonablecomments by NAR and the World Bank. RESOURCES 13. The Consultant(s)shall make availablea team of traffic safety experts representingentities working in the various fields of traffic safety activitiesheaded by a very experiencedteam leader. The required services shall be provided as well from the home offices of the team members as in the field in Romania. The assignmentis estimated to require expert services amountingto a minimum off 48 man months. The Consultant(s)will provide all major equipmentneeded by the team. The client will, free of charge, make office facilitiesavailable at the Ministry of Transport in Bucharest. These facilitieswill be provided with access to telephone, facsimile and copying equipment, the user costs of which will be carried by the Consultant(s).The client will have limited transport and limited interpreter service availablefree of charge. The financingavailable for all activitieswithin the TechnicalServices is $ 1 700 000. This amount is not to be exceeded. File name: m:\cjl\rom\sar\annex5 -72 - Annex 6 Page 1of 4 ROMANIA Ministry of Transports National Administration of Roads PROJECTIMPLEMENTATION PLAN 1. ProiectObiectives The primaryobjectives of the projectare: - to improvethe traffic conditionson the national roadsnetwork and bringthe geometricalelements and road structureup to the level of the Europeanstandards requirements; - bridgesrehabilitation; - the endowmentwith road and bridge maintenance equipment; - to providethe technicalassistance needed for the designand executionof works; - the restructuringand computerisationof the NAR; - the improvementof NAR'soperational, commercial and financialmanagement. 2. ProiectDescrivtion The Projectwill include the following components: A. Road rehabilitationworks - The rehabilitationof approx. 1000 km of national roadsthrough upgrading the road systemto the level of bearingcapacity imposed by the expectedtraffic volume,the correctionof the cross and longitudinal sections,for bringing them to the requiredtraffic capacity throughthe wideningof the carriagewayto min. 7.00 m for the roadsin the technicalclass 3 and to 14.00m for the roadsin the technicalclass 2, the consolidationand wideningof the shoulders,the arrangementof the pluvial vater collectionand drainagesystem. There have also beenprovided measuresfor bringingthe bridgeson the consideredroutes up to the European standardslevel, both concemingthe technicalstate and the bearingcapacity. B. BridaeProaramme -The rehabilitationof 97 bridges,representing 8,865 L.m, consistingof the wideningof the way on the bridge,the remakeof the footways,the remakeof the waterproofing and the replacementof the pavement on the bridge and of the expansionjoint devices. C. BlackSpots Treatment The clearingof 52 black spots on the national roadsthrough the correctionof the geometri_al elementsof the curves, the executionof a third lane in the areaswith steep slopes,the provisionof pluvial vater drainageof the road platform. -73 Annex 6 Page 2 of 4 D. Equipmentfor routine maintenance Equipmentfor routine maintenanceof roadsand bridgesand equipmentfor the CESTRINlaboratories. The list of the equipmentto be purchasedis attached. E. Traffic Safety The objective of this componentis to reducetraffic accidentsby providingthe financingfor technical assistanceto the individual traffic safetysectors, facilitatingefficient traffic law enforcement,developing traffic, safety educationand information(Inter-ministerial Councilfor Traffic Safety). F. TechnicalAssistance - Supervisionof civil works; - PMS,BMS; - ConstructionIndustry G. Civil Works Design The provisionof preliminarystudies in viewof selecting the roadsections comprised in the rehabilitationprogram. Issue of the Tender Documentsfor the contractssettled afterthe roadsections' selection. Elaborationof the Working Drawings. 3. Proiect ImdlementationPlan The PIP includesall essentialdocuments prepared with NAR, the projectbeneficiary and implementingagency that are necessaryfollowing up on, and monitoring progressin projectimplementation. The PIP includes: - DetailedProject Description - ProcurementPlan - ImplementationPlan - MonitorableIndicators - ReportingPlan ,PR()CURIMEN'r PLAN Deadlines Nattire Number Procureisient Tender Comnponent Contract of of oethbudm docurnmeits Invitation Invitation Contract Contract package Contract preparation Precalilicatlon Tendering ' Signature Colupiction A. Road Rehabilitntion Works I)N6 lticharest-leleomrmancountry limit A201 civil works I 1(11 16 D)ec 1996 15 Oct 1996 01 May 1997 30 Nov 1997 31 Dec 2001 DN6 7elcormancountry limit-AlexandriA A202 civil wotks I I lt 16 Dec 1996 15 Oct 1996 01 May 1997 30 Nov 1997 31 May 2001 DN2(E85) Urziceni-lluzau A203 civil works i ICII 16 llec 1996 15 Oct 1996 01 May 1997 30 Nov 1997 31 Dec 2001 D)N2(E85) Buzau-Rimnicu Sarat A204 civil works I 1(11 16 D)ec 1996 15 Oct 1996 01 May 1997 30 Nov 1997 31 Dec 2001 IDN65(E70) Craiov'a-Oltcountry limit AZIS civil works I 1(1t 31 Aug 1997 15 Apr 1997 20 Sep 1997 31 Mar 1998 01 July 2001 D)N65(E70) Olt country limit-Slatina A206 civil works I IfCB 31 Aug 1997 15 Apr 1997 20 Sep 1997 31 Mar 1998 01 Sep 2001 DN65(E70) Slatina-Argescountry limit A207 civil works I ICH 31 Aug 1997 15 Apr 1997 20 Sep 1997 31 Mar 1998 01 Sep 2001 DN65B(E70) Argescoutrry limit-Pitesti A208 civil works I 1(11 31 Aug 1997 15 Apr 1997 20 Sep 1997 31 Mar 1998 01 Sep 2001 D)NI(E60) Cimpina-Comarnic A209 civil works I ICB 31 Aug 1997 15 Apr 1997 20 Sep 1997 31 Mar 1998 01 Sep 2001 ODN28 Sabauari-lTirgulFrumos A210 civil works I lUll 31 Dec 1997 31 Jan 1998 30 Jun 1998 31 Dec 1998 31 Dec 2001 DN28 Tirgu Frumos-lasi A211 civil works I 1(W 31 D)ec 1997 31 Jan 1998 30 Jun 1998 31 Dec 1998 31 Dec 2001 *IDN24 lasi-Sculenr A212 5 civil works I 1(B11 31 Dec 1997 31 Jan 1998 30 Jun 1998 31 Dec 1998 31 Dec 2001 DN2(E85) Rimnicu Sarat-Focsani A213 civil works I IC(: 31 D)ec 1997 31 Jan 1998 30 Jun 1998 31 Dec 1998 31 Dec 2001 JDN2(E85) Focsani-Matasesti A214 civil woks I 1(11 31 DIec 1997 31 Jan 1998 30 Jun 1998 31 Dec 1998 31 Dec 2001 DN2B Oalatl-Oiurgiulesti A215 civil works I lCII 31 Dec 1997 31 Jan 1998 30 Jun 1998 31 Dec 1998 31 Dec 2001 'DN52 Alexandria-Turnu Mfagurele A216 civil works I ICB 31 Dec 1997 31 Jan 1998 30 Jun 1998 31 Dec 1998 31 Dec 2001 Bridges n. Programme BI- B28 civil works 28 NCII 30 June 1997 31 July 1997 31 Oct 1997 31 Aug 2001 U129-1151 civil works 23 NCUB 30 Nov 1997 20 Dec 1997 31 Mlar 1998 31 Dec 2001 Ci - Clt) civil works 10 NCB 01 Sept 1997 01 Nov 1997 01 Feb 1998 31 Dcc 2001 C. Black spots treatment Cl I - C21 civil works I NCB Of Aug 1998 01 Nov 1998 31 Jan 1999 30 June 2001 1). EquIpment for -- routine maintenanceof roads,bridges. for CESTRIN laboratory Multipurpose RoadMaintenance Truck 1)1 goods I lUlN 01 May 1997 30 Junel997 30 Sep 1997 31 Mar 1998 AtmLchmnents for MPRMT 1)2 goods I I(CIJ 15 May 1997 31 July 1997 31 Oct 1997 31 Mar 1997 llridge RoutineMaintenmnce Equipment D3 goods I lCIl 0f May 1997 30 June 1997 30 Sep 1997 31 Mar 1998 Duble l)rum VibratIng Compactor1-1I5to 14 goods I RIC 01 Junel997 31 July 1997 31 Oct 1997 30 June 1998 ILaboratory Equipment 1)5 goods I 1(11B01 July 1997 30 Sep 1997 30 Dec 1997 30 Nov 1998 Bitumen emulsion spreadingmachine _ i6 goods I ICU 01 June1997 31 July 1997 31 Oct 1997 30 June 1998 E. 1raflc safety El - E2 civil works 2 NCn 30 Sept 1997 30 Nov 1997 31 Mar 1998 31 July 2001 F. Technical assIstancefor -- works supervision Fl consultantservices 3 lIl1 30 Nov 1996 16 Dec, 1996 01 May 1997 30 Sep 1997 31 D". 2001 -- PMs F2 consultantservices I lUIl 30 Mlar 1998 -- IIMs F3 consultantservices I TwAr. 30 Apr 1997 -- construction 31 Oct 1998 industry F4 consultantservices I ICU 30 Oct 1997 05 Jan 1998 31 Mar 1998 31 IMar 1999 t. Road and bridges works design (31 - (.3 designerservices 2 1(11 15 IOct 1995 31 Mar 1999 * = Additional Contracs proposedby NAR frons foundsavaillable after tendering. u ICII = Interntrional CormpetitiveBiddint > - NCll National Competitve Bidding ° D Tw Ar. Tlwinninrg Arrangesiert X W ' MPLEMENTATON PLAN ~~~~~____!_ I_ Component No. Conactr A. Road Rehabilitation Works _ _ _ _ Bucharest-Teloorman ON6 conylimit A201 civil works @ . ONEtelormncunt illt-laondr A 203 Ii works .cI DNZ(ES)BzuimiuSeP04N585) Urziceni-Buzau 1 _ __202 civilcvlwrswrk' *** lbs f 4 .. h6. .iy i. AiI . j; .t r b.q ; tDNES(F7QiCraova-Olt counE i t i ~t A 205 civil works 1|& ...... - _.: j .. _I A |ri i i i |ON6$ESO)N65(F701 70 Criopva-CoamcP9OIl cm rnilm-Stetne P206 civilcivilworks works .i;t~-- gdLAt______Ii5i.-_ DNES70)SIacontryge cont, i 20 ii ok I ONES EJO9C *5 oC rni-e BBA2089 Civilworks 17N28 Sabauars-Tirgul Frmnos A210 civil woks V j -; IrI M'D28Tlrg u Frumos-las, A211 clviLwor ks *jt , - _ . - ttN24 lasi-Sculev A212 ciilwok 4 DN2(E5)RmnicSara-Focani A213 civil works & tN2 Gaslat-CGiuri t t t ON52 AJexandra-Turnu Mauce Ara|e66 ci ks 8 Bridges Progrmme 81 828 civi orks | |rizii , . ; C, Blackspotstreatment - ci_iiworks' -o tnemitnneMof rlrloadn dpems. ____ iF Techmentst for _;RMTi Attacmnt01sfor| MRM ______0 goods risble_Drum Vibrating Compactor l-1S5to 04 sd LaboratoryEquip ment _____ Bitumen emulsion spreading machine 06 goods i 8or ES R N laoatr -3 __ _ |___ sen_c_s _; | ; ;_ - *** * | |_| M-opsurpseoaid Maitennc Trc F4 oodMcs ~1 4 > 1 i ,t f. Technical assistancefor: Extiori - PEtS ______~~~~~~~~~~~~~~~~____S __ -ES F3 S Cseiie $f. -constucton inus y I FP4 servCes ______. . .- 0.Rod and b~ridqes wrks des n Gl-G3 sie I ~~ ~ I ~ ~ ( Loan EffectunesProject CompYleton * Tende Documentspreperston and Precelitication N * Tondeftln 0 7 Contract Evaluationand Negotiations 4 * Contec. Execuwion - 76 - Annex 7 Economic Analysis of Road Sections to be Rehabilitated 1. Two consultant teams have prepared detailed feasibility studies of over 2,500 km of national roads to establishpriorities for this project. Consultants' reports are in the project file. They give very detailed analysis and all the parameters used in the Bank's Highway Design Model (HDM-III). 2. Below are a few summary tables and a sample detailed cost-benefit analysis for 2 sections retained for Bank financing. Table 1 gives the inputs used by HDM to calculate vehicle operating costs. Table 2 gives the base year (1995) traffic levels, cost estimates and IRR for the sections to be financed by the Bank and the sensitivity of the IRR in 3 scenarios: Sensitivity test 1. Increase of the roads rehabilitation costs by 20%. This is applied to the economic costs of rehabilitation, occurring in the first three years of the analysis (1997, 1998, 1999). All other parameters are left unchanged. Sensitivity test 2. Increase of the road maintenance costs by 20%. This is applied to the annual and recurrent periodic costs, at their economic values. All other parameters are left unchanged. Sensitivity test 3. Decrease of the annual savings by 20%. This decrease is applied to the annual amount of savings in the years of operation of the Project (2000 through 2019), in economic terms. This sensitivity test, applied directly to the savings, takes into account two factors and the combined effects of their possible decreases (e.g. the traffic volumes and the amount of the specific savings of the vehicles). It can be verified that the reduction of the recurrent costs (road maintenance)does not affect the IRR while some influence of IRR is observed for the increase of the construction costs and the reduction of the benefits (annual savings). Generally, the obtained results can be considered stable, as the elasticity factor is less than 1. Table 3 gives detailed cost-benefitanalysis for 2 typical road sections. All other C-B calculations are in the consultants' report in the project file. m:\jy\rom\roadtext -77 Annex 7 Table 1 TAB. 5.4.3 VEHICLE OPERATlNG COST INPUTS Name Pan:ercar Utilirt Bus jMedium truck Heanz ArtcuMted Vehicle Type 1 4 5 8 9 1io Number of Tires 14 14 6 6 10 114 Grossvehicle veight 1.35 1-2.01 13.35 13.38 19.62 14M Equivalent standard 0.00 0.00 1.48 1.48 1.43 3.6 axdes v Axles Der vehicles _2.00 2.00 12.00 2.00 3.00 15.00 Vehicle pavload 0.30 0.50 4.00 7.00 12.10 123.67 Driiing Power 30 3 1 134 95 151 193 Desired speed 98.3 94.9 80.00 75.00 75.00_ 18.00 Fuel efficient factor 0.85 0.90 0.90 0.90 0.90 10.80 Reca cost 40.0 Number of Recap _|- _- __ __ ,__-_ *_|I.0 Economic prices Vehicle(USS x 1,000) 4270 11780 34600 17070 26440 59000 Tire 70.0 130.0 156.9 156.9 193.4 1236.4 Maintenance labour 1.70 1.70 1.66 1.20 1.20 11.58 _Crewcost_0.14 °0.90 0.90 0.70 0.70 0.90 Time cost 11.60 0.60 0.60 0.60 0.60 10.60 Interest % |10.0 10.0 10.0 10.0 10.0 110.0 Petrol/liter 10.195 0.186 1.00 I Annualkm driven 115000 30000 33000 33000 33000 50000 I VehicleLife 110_10 15 15IS |Ss HR driven 1250 600 660 660 660 l1000 Hourly utlization J 0.7 0.7 0.7 0.7 °0.7 rabou a e 0 1 5. 0. . I I Numnberofpassenger lo.9 I.o Isoo0 0.5 los5 lo.o - 78 - Annex 7 Table 2 Economic Analysis of World Bank Finance and Road Sections Road Name Length ( 1995 Traffic Average cost Total link EIIR % AADT USSIkim cost USS DN I (E60) Campina-Comnamic 22.2 11,400 894,129 19,849,664 38.50 DN 2 (E85) Urziceni-Buzau 49.8 7,800 380,809 18,964,288 53.90 DN 2 (E85) Buzau-Rm. Sarat 38.6 9,700 469,921 18,127,371 50.80 DN 6 Bucuresti-Alexandria 78 9,800 396,246 30,907,188 61.90 DN 65 (E70) Craiova-Slatina 45.1 7,800 399,726 18,027,643 44.50 DN 65 + DN 65B (E70) Slatina- 70.5 7,700 422,860 29,811,630 45.10 Pitesti Motorway (DN 65B) TOTALS/AVERAGES [ 304.2 446,048 135,687,784 49.87 Results of Sensitivity Tests Base case Sensitivity 1 Sensitivity2 Sernsitivity3 Road Name cash nlow IRR IR IRR ______R R (%______ DN 1 (E60) Campina-Comnamic 38 33 38 32 DN 2 (E85) Urziceni-Buzau 54 48 5, 46 DN 2 (E85) Buzti-Rm. Sarat 51 44 51 43 DN 6 Bucuresti-Alexandna 62 55 62 53 DN 65 (E70) Craiova-Slatina 45 39 45 38 DN 65 + DN 65B (E70) Slatina- 45 39 45 38 Pitesti Motorway (DN 65B) m.:WyomVroads2Isartab2.xIs - 79 - Annex 7 Link 1 Campina - Comamic Table 3 Year Increase in ncreasein Savingsin Savings in Base Sensitiviry 5ens,;z;j Sens.:ivity road capital roal reci rr. existingveh. existing veh. case I 3 costs costs ocerating travel time cash flov. 1997 -5,75 C,00 0,00 0.00 -5,75 -6.90 -5..5 -5.75 1998 -7,66 0.00 0,00 0.00 -7.66 -9.20 ,7.56 .6 1999 -5,75 0.00 0.00 0,00 -5.75 -6,90 -5.75 -5.,75 2000 0.00 0.00 9,40 0,84 10.24 10.24 '2.2: S.19 2001 0,00 0.00 9,61 0,88 10,49 10.49 10.49 8.39 2002 0.00 0,00 9,90 0,92 10,82 10.82 10.82 3.66 2003 0,00 0,00 10,13 0,97 11,10 11,10 11.10 5.86 2004 0,00 0,CO 10,27 1,01 11.26 11,28 11.28 9.O0 2005 0,00 0,00 10.30 1.04 11.34 11,34 11.34 9.07 2006 0,00 0,00 10,28 1,08 11,35 11 ,'5 t 1.35 9,e0 2007 0.00 0,00 10,15 1,10 11.25 11.25 t1,25 9.00 2008 0,00 0.00 9,74 1,10 10,85 10,85 10.85 8.68 2009 0,00 0,00 8,69 1,04 9,73 9.73 9,73 7.79 2010 0,00 0.00 6.05 0,78 6,83 6.83 6.83 5.4 2011 0,00 0,00 2.20 0,31 2,51 Z.51 Z51 2.01 2012 0.00 0,00 0,38 0,05 0,43 0,43 0,43 0,35 2013 0,00 0,00 0,40 0,05 0,45 0,45 0.45 0.36 2014 0,00 0,00 0,41 0,06 0,47 0,47 0.47 0.38 2015 0.00 0.00 0,43 0,06 0,49 0.49 0.49 0.3 2016 0,00 0.00 0,45 0.06 0.51 0,51 0.51 0.41 2017 0,00 0,00 0,46 0,06 0.53 0.53 0.53 0°4 2018 0,00 0,00 0,48 0,07 0.55 0.55 0.55 0. 2019 4,79 0.00 0,50 0,07 5.35 6.31 5.35 5.2 IRR = 38% 33% 33% 32% Link 2 Urziceni - Buzau Year Increase in Increasein Savingsin Savings in Base Sensitivity Sensiaroy Sensitivity road capital roadrerr. existingveh. existingveh. case 1 2 3 costs costs operating travel Ume cash flow costs costs 1997 -5,56 0.00 0,00 0,00 -5,56 -6,68 -5.56 -5,56 1998 -7,42 0,00 0,00 0,00 -7,42 -6.90 -7.42 -7.4 1999 -5.56 0.00 0,00 0,00 -5,56 -6,68 -5,56 -5,56 2000 0,00 0., 13,06 1,04 i4,10 14.10 14,10 tl,23 2001 0,00 0.00 15,53 1,37 16,90 16,90 16,90 13,5 2002 0,00 0,00 16,01 1.4.4 17.45 17,45 17,45 13,96 2003 0,00 O.00 16,41 1,51 17,92 17.92 17,92 14,33 2004 0,00 0,00 16,66 1,57 18,24 18,24 18.23 14,5 2005 0,00 0,00 16,76 1,63 18,39 18.39 18.39 14,71 2006 0,00 0,00 16,85 1,69 18,53 18,53 18,53 14.82 2007 0,00 OC.O 16.87 1,74 18,60 18.60 18.60 14,8 2008 0,00 0.00 16,72 1,78 18.50 18,50 1,50 14.8 2009 0,00 0,00 16,24 1.79 18.03 18,03 18.03 14.42 2010 0,00 0,00 15,08 1,74 16.80 16,S0 16.79 13,4_; 2011 0,00 0.00 12,44 1,53 13,97 13,97 13,97 11.16 2012 0,00 0,00 6,71 0,90 7,61 7,61 7.61. 6.09 2013 0,00 0.00 1,17 0,17 1,34 1,34 1,34 1,07 2014 0,00 0,00 -0,31 -0,04 -0,35 -0,35 -0,35 -0,28 2015 0.00 0.00 -0,32 -0,04 -0,36 -0,36 -0.35 -0.29 2016 0,00 0.00 -0,33 -0,04 -0,37 -0.37 -0,37 -0.30 2017 0,00 0,00 -0,34 -0,44 -0.78 -0,78 -0.78 -0.63 2018 0.00 0.00 -0.35 40,05 -0,40 -0,40 -0.40 -0.32 2019 4,64 0,00 -0.37 -0.05 4,22 5.15 :22 4,3C IRR ,. 54% 48% S4% 46 ROMS SEN.XLS Page I - 80 - Annex 8 ROMANIA SECOND ROADS PROJECT DOCUMENTS IN THE PROJECT FILE 1. Detailed Project Description. NAR. November 1996 2. Second Transport Project (Regional Group 2). Pre-Investment Study. SPEA - Italy and Iptana - Search. In 5 volumes, Bucharest. June 1996 3. Second Transport Project (Regional Group 1). Pre-Investment Study, Louis Berger International & Viacons, Consistrans, Relax, Eurometudes. In 2 volumes, Bucharest. June 1996 4. La Securite Routiere en Roumanie; Gerondeau and Others. June 1993 5. Dinamica Accidentelor Grave de Circulatie 1991-1995 and various other publications. Ministry of Interior, Inspectorate-General of Police, Bucharest. May 1996 File name: m:\cjl\rom\sar\annex8 lS e GL t n H - lo IBRD 27751 I /& - 1ILOMETERS\~ 25- -,.~' /2 KILOMETERS 2- X2.o M AAI N I A 25 50 75 10KAIERO RA I N E T 11vov 1- , % R O 0 25 50 75 1001-- U K Kh__- SECONDROADS PROJECT 0 ;0 20 M3OLESJ0 NETWORKSELECTED FOR 4ao sotu < j - - > OSA ~~~~~~~~~~~~~~~~~~~~~NETWORKSTUDIED R E S =~~~~~~~~~~~~~(2,500km M>bat - -x S U C E A V X , %g o UNDER HU N G A R Y J A '~~~~~~~~~~- HUNGARYii- MARAM~~~~~~~~~~~~~~~~~~~~~~~~~~~RE5~~REHABILITATED 01 PREVIOUSPROJECT NRA REGIONS 615TRITA- \ < { -4 \ < s BIS< a C. -> _ 2 0 *( - ( T IASI HEADQUARTERS Y NASAUD/ . Ki,- - BOUNDARIESN7eRNI $ A- T. SELECTEDCITIES Zo ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 0(3S COUNTY(JUDET) CENTERS FEDERALA U NATIONALCAPITAL N,.. K,,~T.o - EXPRESSWAY ~ ~ ~ ~ ~ ~ ~ ~ ~ - MAJOR ROADS f ~~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ -A P~~~~~~~~~~~~~~~~AILROADS CLUJ N = A M ' ~~~~~~.1-- *r a _<\ t , 2 codsho,cccoy oil,., on ,clormcOoo~ ~ ~ ~ Albaful, oI CE 2VRA on edosei.ir OcplncTO I RSAOV Ia.e'-7N, BRAO I. A A UmZeKb c~~~~~myfiosem~o0cwe0f 2 2 H14BUNEDOARA IUL. )_ ' - s,l,,-ovC0SANSTTA'L BOUNDARIES (SERBIA/MONTENEGRO) ~ ! "-.X D cljL J tGAIUR,G .ogsnundof Ga World8nRock iG-\)<]Gugi Aean AC bounoclon,, color,, deoom,oon,j<,.,eil,L_t/''w- rVoo, Ov,o, In. app do nol aiply. cc ie pcr. of \u GoeWorld RankGroip. ony oudgronnt~Mgree-\y/ v- ' ,* A - SEPTEM8 9EM ,och boundor,to 2 SEVERIN -HOV-AI IMAGING ReportNo.: 16153 RO Type: SAR