cet- 3s ReportNo. 1702a-CR CostaRica ¡rrfD SanJose Urban Transport Project FILECOPY Public Disclosure Authorized September26, 1977 Urban ProjectsDepartment FOR OFFICIALUSE ONLY Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the Worid Bank This document hasa restricteddistribution and may be usedby recipients only in the performanceof their official duties. Its contents may not otherwise be disciosedwithout World Bankauthorization. CURRENCY EQUIVALENTS US$1.00 = 8.6 colones US$0.12 = 1.0 colon US$116,279 = 1 million colones MEASURES AND EQUIVALENTS 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) 2 = 0.62 mile (mi) 1 square kilometer (km ) = 0.386 square miles (sq mi) ABBREVIATIONS AND ACRONYMS CODESA = Corporacion Costarricense de Desarrollo/Costa Rican Development Corporation CBD = Central Business District CTT = Comision Technical de Transporte/Technical Transport Commission DGV = Direccion General de Vialidad/Directorate of Highways DGTA = Direccion General de Transporte Automotor/Directorate of Automotive Transport DGP = Direccion General de Planificacion/Directorate of Planning DGT = Direccion General de Transito/Directorate of Traffic DTRP = Departamento de Transporte Remunerado de Personas/ Department of For-Hire Passenger Transport MOPT = Ministerio de Obras Publicas y Transporte/Ministry of Public Works and Transport OFIPLAN = Oficina Nacional de Planificacion y Politica Economica/ National Office of Planning and Economic Policy RECOPE = Refinadora Costarricense de Petroleo, S.A./Costa Rican Petroleum Refining Co. TOPICS = Traffic Operations Programs to Increase Capacity & Safety TRANSMESA = Transportes Metropolitanas de San Jose, S.A. f3 OFF A Un ONLY COSTA RICA SAN JOSE URBAN TRANSPORTPROJECT Table of Contents Pag* No. SUMNARY AND CONCLUSIONS ................................. i-il I. INTRODUCTION .......... ................................. 1 II. BACKGROUND ............ .................................. 1 A. Population and Economy ......................... 1 B. The San Jose Metropolitan Area.... 3 C. Transpott in San Jose , ..... 4 D. Project Rationale ....... ......................... 9 III. THE PROJECT ........... ..................................11 A. Objectives ......................................... 1i B. Main Features ..................................... 11 G. Detailed Features .................................. 12 D. Cost Estimates ..................................... 18 E. Financing Plan ..................................... 20 F. Procurement and Disbursement ....................... 20 G. Accounts and Audit ................................. 20 H. Implementation Schedule ............................ 21 I. Pre-Implementation Public Information Program ...... 21 J. Monitoring by Goverrment ........................... 21 IV. PROJECT IMPLEMENTATION .................................. 22 A. Organization for Implementation ..... ...............22 B. Selected Implementation Activities .... ............. 25 V. PROJECT JUSTIFICATION ..................... 26 A. Expected Benefits .................................. 27 B. Risks ............ ...................................33 VI. AGREEMENT REACRED AT NEGOTIATIONS ............ ........... 33 This report was prepared by C. Madavo, P. Watson, A. Walters, B. Rush, and G. Morra. I Th docueanbur a mtr distributionsad may be med by r ans oa*l tl pormace of theiroffic¡a dut ¡ti contentamay not otlwwhe ~ vb_~out Wo Bk &utltb . -2- ANNEXES 1. Background Information 2. Details of TOPICS Components 3. Equipment to be Provided under the Project 4. Technical Assistance 5. Training Component 6. The Value of Land 7. Schedule of Disbursements 8. The Traffic Management Component 9. Public Transport 10. Economic Justification CHARTS I. ImplementationSchedule (ChartWB 17642) TI. OrganizationChart of Ministry of Public Works and Transport (Chart WB 17644) III. Proposed Organizationof Public Transport and Traffic Engineering in the DirectorateGeneral of Automotive Transport (Chart WB 17643) MAPS IBRD 12935 - Metropolitan Area IBRD 13010 - AdiministrativeDivisions of the San Jose MetropolitanArea COSTA RICA SAN JOSE URBAN TRANSPORT PROJECT SUMMARY AND CONCLUSIONS i. Costa Rica has a strong record of economic development, leading to rising incomes which are relatively evenly distributed. The capital, San Jose, is the focal point of the country and is likely to retain its dominant position for the foreseeable future. Jobs are concentrated in the center of San Jose, placing heavy demands on the city's transport system. Given the growth of car ownership and use, traffic conditíons are deteriorating rapidly and show every prospect of becoming increasingly worse in the future. ii. The major objective of the proposed project is to improve travel conditions in San Jose, especially for users of public transport. The strat- egy for achieving this improvement reflects the Government's decision to make the best possible use of the existing transport infrastructure before embark- ing upon an extensive road building program. This includes giving priority to more efficient means of moving people, notably by public transport. iii. In the proposed project, the main improvements to the physical system consist of road widening on major arterials, where possible within existing rights-of-way. To accompany these improvements, a series of low- cost schemes was devised to increase road capacity and improve traffic flow, while giving priority to public transport and recognizing the need to provide adequately for pedestrians. Only one new section of road will be built (to connect with the Siquirres-San Jose Highway being constructed under. the Fourth Highway Project (Loan 1187-CR)). Provisions have also been made to ensure that the new facilities will be maintained and policed and to assist the Government to develop the local capacity to undertake similar projects in the future. iv. The major components of the proposed project are: (a) Radial Routes. Improvements to radial routes in seven corridors, including one new road; (b) Traffic Operations Program to Increase Capacity and Safety (TOPICS), including intersection improvements, sub-area improvements, dispersal schemes, pedestrian crossings, and a Central Business District (CBD) Traffic Signal System; (c) Equipment for road maintenance, traffic management, traffic regulation enforcement, and for a bus inspec- tion facility including a building to house the facility; - ii - (d) Technical Assistance in the form of advisers on project management, traffic planning, public transport development, enforcement, traffic signals, and bus maintenance, and funds for a metropolitan planning study; (e) raining; for MOPT staff in traffic engineering, bus operations and regulation, traffíc surveillance and enforcement and for bus owner/operators in management techniques. v. Total project costs are estimated at t 270.54 million (US$31.46 million), with a foreign exchange component of ¢ 141.89 million (US$16.5 míllion). The proposed loan will finance 100% of the foreign exchange cost or 52% of total costs. The funds would be lent to the Government of Costa Rica and made available to the MOPT, whích would be responsible for executing all the project components except the metropolitan planning study, which will be the responsíbility of the National Office of Planning (OFIPlan). The imple- mentation period will be three years. vi. Procurement for road construction, widening, and rehabilitation (value US$11.5 millaon) and equipment (US$2.99 million) will be on the basis of international competitive bidding. The TOPICS program (roughly 60 schemes valued at US$1.41 million) will be carried out on the basis of local competí- tive bidding because the schemes are too small for international contracting. Government local competitive bidding procedures have been examined and found to be reasonable. vii. The Bank loan will be disbursed to cover 70% of the total costs of radials and TOPICS improvements (less land), 100% of foreign expenditure or 85% of local expenditures for equipment, 100% of foreign expenditures or 75% of total expenditures for technical assistance, 100% of foreign expendi- tures or 70% of total expenditures for training. -vili. The radial route improvements included in the project were selected ín order to maximize net present values (NPV) from a range of alternatives that íncluded more and less expensive proposals. All of the components selected have high NPV's and all but one are justified on the basis of savings 1invehicle operating costs alone. The addition of time savings strengthens the economie justifications. The internal rates of return range from 21% to 70%, with an average return of 36%. Fífty-one percent of benefits accrue to public transport. ix. The CBD Traffic Signals System generates benefits in the first year of 0 5.1 (US$59) million of which 59% accrue to public transport. The first year rate of return is 26% with only vehícle operating cost savings and 44% including time savíngs. Together the radials and CBD signals system constitute 79% of total project cost and give a rate of return of 37%. x. The proposed project is suitable for a Bank loan of US$16.5 million at the prevailing interest rate for a 17 year term, including four years of grace for principal. COSTA RICA SAN JOSE URBAN TRANSPORT PROJECT I. INTRODUCTION 1.01 The Government of Costa Rica has requested Bank assistance to finance and implement low-cost urban transport improvements in San Jose. The project results from a UNDP financed