Docment of The World Bank Public Disclosure Authorized
ReportNo. 13804-ALB
STAFF APPRAISAL REPORT Public Disclosure Authorized
ALBANIA
RURAL ROADS PROJECT
Public Disclosure Authorized MAY 1, 1995
Public Disclosure Authorized Energy, Environment, Transport and Telecommunications Division Central Europe Department Europe and Central Asia Region CURRENCY EQUIVALENT Currency Unit = Lek (Average Commercial Rates)
Avg. Avg. Avg. December March 1991 1992 1993 1994 1995 US$1.00 = 15.0 98.9 101.0 94.7 92.3 Leks
WEIGHTS AND MEASURES Metric System
ALBANIA: FISCAL YEAR January 1 - December 31
ABBREVIATIONS CAS - Country Assistance Strategy CEE - Central-Eastern Europe DC - direct contracting DRD - District Road Directorate ERR - economic rate of return EU/G24 - European Union/Group 24 G - gravel GDP - gross domestic product GNP - gross national product GOA - Government of Albania GRD - General Roads Directorate HDM - Highway Design and Maintenance Standards Model ICB - international competitive bidding IDA - International Development Association IFAD - International Fund for Agricultural Development IFIs - international financing institutions IMF - International Monetary Fund IRI - international roughness index IRP - Irrigation Rehabilitation Project LCB - local competitive bidding LS - local shopping MOF - Ministry of Finance m/m - man/month MOC - Ministry of Construction and Tourism MOT - Ministry of Industry, Transport and Trade N.I.F. - non-IDA financed N.P.V. - net present value p.a. - per annum PIU - Project Implementation Unit p-km - passenger-km PM - penetration macadam RPAP - Rural Poverty Alleviation Project SA - Special Account SOEs - statements of expenditure TA - technical assistance t-km - ton-km TOR - terms of reference voc - vehicle operating costs vpd - vehicles per day ALBANIA RURAL ROADS PROJECT
Table of Contents Chapter Pge No.
Credit and Project Summary ...... (i)-(iii)
I. ECONOMY AND SECTOR A. Economy ...... 1 B. The Transport Sector ...... 2 C. Previous IDA Involvement in the Transport Sector ...... 5 D. Future Planning in the Transport Sector ...... 6
II. ROADS A. Network and Traffic ...... 6 B. Administration and Organization ...... 7 C. Construction and Maintenance ...... 8 D. Planning and Supervision ...... 10 E. Expenditures and Financing ...... 10 F. Road Transport ...... 12 G. Environmental Aspects ...... 12
III. THE PROJECT A. Project Objectives ...... 13 B. Project Description ...... 13 C. Relation to Other Projects in the Sector ...... 18 D. Cost Estimates ...... 19 E. Project Financing ...... 20 F. Project Design, Organization and Implementation ...... 21 G. Procurement ...... 24 H. Disbursement ...... 27 I. Accounting and Auditing ...... 28 J. Environment ...... 29
IV. ECONOMIC EVALUATION A. Methodology ...... 29 B. Project Area ...... 30 C. Calculation and Results ...... 31 D. Risks ...... 31
V. AGREEMENTS TO BE REACHED AND RECOMMENDATIONS ...... 32
TABLES 1.1 Transport Investments (US$000 equivalent), 1992-94 ...... 3 1.2 Rail and Waterborne Traffic, 1990-1993 ...... 4 1.3 Road Vehicle Fleet ...... 5 3.1 Project Components and Cost Estimate ...... 19 3.2 Financing Plan ...... 21 3.3 Procurement Arrangement ...... 25 2.1 National Road Network ...... 35
3.1 Road Improvement Program ...... 36 3.2 Road Improvement Measures ...... 39 3.3 Equipment to be procured ...... 42 3.4 Incremental Operational Costs ...... 44 3.5 Consultants for Construction Supervision, and TA and Training - T.O.R. ... . 45 3.6 Technical Assistance and Training ...... 50 3.7 Project Coordinator - Terms of Reference ...... 51 3.8 Organization and Management Study - Terms of Reference ...... 54 3.9 GRD and Project Organization ...... 58 3.10 Road Improvement Program - Year 1 Defined Roads .60 3.11 Project Implementation Schedule .61 3.12 Project Monitoring Matrix .63 3.13 Schedule of Disbursements .65 3.14 Environmental Assessment .66
4.1 Factors for Selecting Project .68 4.2 Details of the Economic Evaluation .69
5.1 Documentation in Project File .73
CHARTS 1 Organization Chart of the MOC and GRD .74 2 Organization of District Road Directorate .75
MAPS IBRD 26231 - Project Districts IBRD 26232 - Tirana and Northern Districts Roads IBRD 26233 - Durres and Southern Districts Roads IBRD 26234 - Southeastern Districts Roads IBRD 26725 - Additional Five Roads
Ml&report wa prepad on the basis of an appraisa missionto Albania in Jhe 1994. The missionwa led by Luis Revuelta (Tranport Engineer;EC2ET). Mision memben were Meur. PeterParlker (Trnport Economist; EC2ET),and P. Cher;yan (FTancialand Managenat Analyst; Consultat). Mr. Floreat del Plchia (Reearch Assstat) cofaborated on the completionof the appraial documentation at negotiations. ThePeer Reviwe are Messrs. Jose Carbajo and Antti Talvitie (TWUTD). TheDivision Chief is Mr. Hans J. Apitz (EC2ET), and the Deprtment Director Mr. Kemal DerY4 (EC2DR). ALBANIA
RURALROADS PROJECT
STAFF APPRAISALREPORT
Credit and Project Summary
BORROWER: Republic of Albania.
Beneficiary: General Roads Directorate, Ministry of Construction and Tourism.
Credit Amount: SDR 10.1 Million (US$15.00 million equivalent).
Terms: Standard IDA terms, with 40 years maturity.
Poverty Category: Program of Targeted Intervention (para. 3.01)
Project Objectives and Description: The main objectivesof the project are: (a) to promote agricultural development by rehabilitating and maintainingrural roads serving agricultural areas and to improve access, economic and social services for rural population centers; (b) to establish the institutional and financial arrangements for administering and maintaining rural roads on a sustainablebasis; (c) to reduce poverty and increase employmentby carrying out project works with labor intensive methods; and (d) to encourage the development of the domestic contracting and consultingindustries.
The project includes: (a) improvementof 975 km of rural roads by contractors using labor intensive methods(US$24.40 million, excludingcontingencies); (b) provision of office and transport equipment (US$0.85 million); (c) operational costs (US$0.33 million); (d) supervisionof works (US$1.00million); (e) technical assistance (TA) (US$0.30 million), a project coordinator (US$0.40 million), and training (US$0.20 million) to implement the project; and (f) an Organization and Management Study (US$0.30 million), includingan inventoryof the 9,500-km rural road network and an analysis and definition of the best institutional, managerial, and financial arrangementsfor its administration. -ii- Benefits and Risks: The GOA has expressed strong interest in the project, which is expected to play an important role in the consolidationof a free-market based rural transport sector. The main project benefits include savings in vehicle operating costs and road maintenancecosts. Unquantifiablebenefits include increased development of agriculture where lack of access has choked agricultural output, generation of employment, promotion of domestic contracting, institutional improvements in road maintenance, better rural services, and environmentalimprovement consisting mainly, but not only, of the reductionof soil erosion. The project is estimated to have an ERR of about 33 percent.
The main project risks are: (a) GOAdoes not provide sufficient funds to maintain the project roads; (b) GOA fails to implement the necessary institutional reforms to administer and maintain the rural road network; and (c) labor intensive road works are complex. However, GOA has set its budget for maintainingthe main road network above the levels agreed under the ongoing Transport Project, and will be asked to agree at negotiationsto provide sufficient funds to maintainthe project roads; this would reduce risk under (a). GOA's recent adoption of legislation on local governmentreform, and the establishmentof a task force to address remaining issues would significantly reduce risk (b). Risk (c) would be minimized by employing consultants experienced in labor intensive works. Project risks are consideredto be acceptable with these arrangements. There is a country risk, the threat of a Balkan war, which cannot be assessed.
Project II) Number: 8267 EstimatedProject Cost Local Foreign Total and FinancingPlan
-US$ Million - A. Road Works Improvement of 975km. of rural roads Oabor 20.74 3.66 24.40 intensive) B. Office and Transport Eguipment Equipment, vehicles, spare parts, tools, and 0.85 0.85 materials C. Operational Costs 0.07 0.26 0.33 D. Supervision of Works under (A) above 0.20 0.80 1.00 E. Technical Assistance and Training (i) Technical Assistance 0.06 0.24 0.30 (ii) Project Coordinator 0.09 0.31 0.40 (iii) Training 0.10 0 1 020 Subtotal 0.25 0.65 0.90 F. O_anization and Management Study 0.05 0.25 0.30 Base Cost (A + B + C + D + E + F) 21.31 6.47 27.78 G. Contingencies Physical (10%) 2.13 0.64 2.77 Price 2.25 0.80 3. TOTAL PROJECT COST 25.69 7.91 33.60 Financing IDA 11.09 3.91 15.00 Italy 11.00 4.00 15.00 Government 3 aQ TOTAL 25.69 7.9 1
Estimated (US$ Million) EDADisbursements IDA Fiscal Year 1996 1997 1998 1999 Annual 2.5 4.5 5.5 2.5 Cumulative 2.5 7.0 12.5 15.0 (S) 17 47 83 100 Economic Rate of Return: 33%
I. ECONOMY AND SECTOR
A. Economy
1.01 Economic Developments. Since the presentation of the last Country Assistance Strategy (CAS), Albaniahas continuedto emerge from the deep social and economiccrisis that accompaniedthe collapse of communismin 1990-92. Gross Domestic Product (GDP) grew more than 10 percent in 1993 and 7 percent in 1994, and inflation declined from a peak annualizedrate of 30 percent in mid-1993 to less than 16 percent in 1994. The macroeconomic program supportedby the IMF and the World Bank remains on track. Substantial remittances from abroad, coupled with the income created by the newly-emergingprivate sector, fueled an extraordinary expansion in demand and associatedstandard of living for Largesegments of the population.
1.02 The very strength of the economic recovery has, however, aggravated the severe infrastructure bottleneckswhich were noted by the CAS to be a major impedimentto private sector development. Bottlenecksare particularlyprevalent in transport, electricity distribution, water supply and sewage and housing. An example of the problem was the electricity crisis of December 1994, where frequent power outages disrupted economic activity and created difficult living conditions. Investment flows averaging close to 20 percent of GDP would be required to rebuild infrastructure and maintain an adequate public investment. The required level of investmentcould not be provided under the constraintsof the adjustmentprogram during 1993 and 1994, althoughan important step forward has been achievedwith a substantialincrease in public investmentin the 1995 budget. The priority given to infrastructure in the 1994 CAS thus remains fully valid, with emphasison providing investmentcapital aid helping to improve the institutionalcapacity and market-orientedpolicy framework. The next three projects that we plan to present to the Board are in the infrastructure sector, including the present project, a Power Transmission and Distribution Project, and a Second Transport Project. Overall performance of the IDA portfolio has been good. CumulativeIDA disbursementshave, so far, been 50 percent ahead of worldwide IDA averages, and the developmentimpact of the portfolio has met the desired objectives. With one exception,new IDA projects have taken less than three months on average to become effective. To further strengthen portfolio ownership and management,a series of annual CountryPortfolio PerformanceReviews were started in October 1994.
1.03 Agriculture. Agriculture(a principalproject beneficiary) accounts for about 50 percent of GDP. Albania has made extraordinary progress in reforming the sector. Nearly all cooperativeland and state farms have been distributed, creating over 400,000 smallholderfarms. Together with the liberalizationof all producer, wholesale and consumerprices, this reform has resulted in an increase of agricultural output of about 20 percent in 1993. However, the croppingpattern remains orientedtoward satisfyingfamily needs as the newly establishedprivate farmers seek to protect their food security, with little agricultural surplus being marketedto date. Further reforms are required in the areas of pricing policy, the system of rural credit and land policy. Inadequateinfrastructure is also a serious obstacle to the further development of the agricultural sector, particularly irrigation facilities and rural roads. Most rural roads in -2- agricultural areas are now in such poor conditiondue to lack of maintenancethat an estimated 400 villages and numerous settlements inhabited by a total of nearly one million people are inaccessibleto motorizedvehicle during at least part of the year, as discussed further in Chapter II.
1.04 Government Decentralization. In most countries, the responsibility for the construction and maintenanceof rural roads is assigned to local government, since most of the benefits are local. Albania has taken the first steps to establish and fund local government authorities. The draft constitutionprovides for three hierarchicallayers: (a) central government; (b) 36 district governments (the intermediate layer); and (c) numerous local communes and municipalities. Parliament passed the Law on the Organization and Functioning of Local Government and the Law of Prefectures, both in 1992, which more or less has established the three layers of government. The Governmenthas established an IntergovernmentalTask Force on Decentralizationto address remaining issues. In particular, they are seeking: (a) to clearly delineate expenditure assignments, obligations and authorities among various levels of government; (b) to maintain central quality control in key sectors; and (c) to review the implications of centralized pricing policies on local government, develop a local government financing plan, and define the assets which are being transferred to local government. While some aspects of this process require a country-wide approach, others can be handled on a sectorial basis, including the technical and administrative arrangements for maintaining rural roads. To further this process, the project includes a study on organizing the maintenanceand administrationof rural roads, as described in Chapter Ill.
1.05 Unemploymentand Poverty. The low level of salaries under central planning was partially compensatedfor by good overall access to health, education and other social services, and the quasi absence of open unemployment. With the chaos that followed the transition of 1991-92, access to social services deteriorated, and pockets of extreme poverty have emerged, especiallyin remote rural areas. The project is expectedto have a significantimpact on poverty because it will be carried out with labor intensive methods in rural areas with a high concentration of poor people. The Project has been classified as a "Program of Targeted Intervention' because of its expected impact on unemploymentand poverty, as discussed in Chapter m.
B. The TransportSector
1.06 System. The transport system is based on: (a) a road network of about 18,000 km, which is described in Chapter II; (b) a rail network of 447 km of single track main lines plus 273 km of other lines; (c) the main port of Durres with 2,563 m of quays, and secondary ports of Vlora, Saranda and Shengjini; (d) inland navigation on the Drinit River; (e) a national shipping fleet of 31 vessels totaling 85,000 dead weight tons, and (f) an internationalairport at Tirana with a 2,700 m runway. The transport system is generally adequate in extent, but its condition has deteriorated to the point where it is significant constraint on the developmentof a market economy. -3- 1.07 Sector Transformation. Transport demand and supply were both highly distorted under the previous regime. Like other Eastern European countries, Albania was transport intensive due in part to the emphasison mining and heavy industries and to the subsidizationof transport services. The Government required that most goods be carried by the railway, and goods were moved to or from the railhead by a fleet of small, publicly owned trucks. Private automobiles were prohibited, as were transport businesses run by the private sector. The Government invested only around US$30 million per annum (p.a.) in the transport and communicationssectors during 1986-90. Althoughthe previous regime emphasizedthe railways and showcaseinvestments, in practice many projectswere not completed,construction standards were low, transport infrastructure was not maintained,and equipment was not replaced when it was worn out. The Government has since increased investmentsas indicated in Table 1.1 below.
TABLE 1.1 Transport Investments (US$000 equivalent), 1992-94
1992 1993 1994 Road US$ 680 US$700 US$ 2,500 Rail 260 290 200 Ports 700 970 1,290 Airports ------Other 200 1,710 TOTAL US$1,640 US$2,160 US$5,700
Source:MOT
1.08 The GOA has also taken a number of steps since 1991 to establish market-based policies in the transport sector. The Ministry of Industry, Transport and Trade (MOT) has privatized most of its truck and interurban bus fleet, and removed most land transport regulations.The GOA has postponedseveral large investmentswhich appeared uneconomic,and is using available funds to catch up with the maintenance and rehabilitation of existing infrastructure. The GOA also increasedroad fuel taxes as discussed in Chapter II, and initiated a program to improve road safety. The Port of Durres is taking steps to establish itself as an autonomousport and is preparing a port masterplanunder the ongoing Transport project. The goal is to improve port operations, and to operate on a self-financingbasis. MOT is further defining its role in a market-basedeconomy, assisted by project consultantsand other advisors. However, much further work remains to be done; for instance, the institutional, organizational and technical arrangementsfor administeringand maintainingrural roads must be established. This is a principal objective of the proposed project. -4- 1.09 Market reforms have had a significanteffect on transport demand. Uneconomicmines and heavy industries have closed, significantly reducing the demand for rail transport. Agriculture and small scale commercial activities have grown. Freight volumes are much smaller and quality requirements higher for these activities, favoring road transport. The transport sector has been essentiallyderegulated, private automobilesand transport businesses are now permitted, and transport subsidies have been reduced. As a consequenceof these changes and the economic slowdown, railway freight traffic has declinedto about one-tenthof the level of the late 1980s. Recent trends for rail and water traffic are as follows (statisticsare no longer available on road traffic due to privatization):
TABLE 1.2 Rail and WaterborneTraffic, 1990-1993
Unit MODE (millions) 1990 1991 1992 1993
Freight
Railway tons 6.6 2.9 0.6 0.6 t-km 584 278 60 54 Water Transport tons 0.4 0.1 0.1 0.1 t-km 34 10 4 0.8
Passengers Railway passengers 11.9 5 2.8 4 p-km 779 317 191 230 Water Transport passengers 0.2 0.3 0.2 0.1 p-km 5 6 4 0.2
Source:MOr
1.10 Road traffic has grown rapidly; the number of passenger cars has increased more than 25-fold from a low base, and the number of trucks has increased three-fold between 1990 and 1994. (See Table 1.3). -5- TABLE 1.3 Road Vehicle Fleet, 1990 - 94
Buses and Cars Mini-buses Trucks Total 1990 (Public only) 2,362 1,798 13,261 17,421 1992 (November) 18,942 3,819 29,358 52,119 1994 (April) Public 7,586 2,500 18,912 28,998 Private 53,935 4,298 24,710 82,943 Total 61,521 6,798 43,622 111,941
note: does not include motorcycles, agricultural tractors or trailers. Source: MOT
Albania now has 18 passenger cars per 1,000 population, which is much lower than other Central and Eastern European (CEE) countries (e.g. 70 in Rumania, 147 in Bulgaria, 169 in Poland), but roughly consistent with ownership rates in other low and lower-middle income countries (e.g., 15 in Thailand; 19 each in Bolivia, Egypt, and the Philippines; 32 in Ecuador). Future car ownership patterns are expected to more nearly approximate those of other CEE countries becauseof Albania's location in Europe, the large supply of inexpensiveused vehicles in adjacentcountries, and the expectedrapid developmentof the economy from a low base. In order to catch up, the car fleet will need to grow at more than double the rate of GNP for at least the next several years. This kind of growth has been observed in other parts of the world in earlier years. The Bank forecasts that Albania's GNP will grow 6 percent per year from 1994 to 1997.
C. Previous IDA Involvementin the TransportSector
1.11 As an immediate response to critical needs, port materials and spare parts, 20 urban buses, and a small amount of railway communicationsequipment were included in IDA's first loan to Albania, the Critical Imports Project (Credit 2404-ALB) in 1992. A loan of US$18 million to the transport sector was subsequentlymade by IDA in October 1993, together with the Kuwait Fund and other donors (Credit 2499-ALB). This ongoing Transport Project seeks to address two important issues: accommodatingthe increase in road traffic, and determining the future role of railways. It is IDA's first credit to the transport sector in Albania. The project includes the improvementof 84 km of main roads, the provision of equipment for the Tirana road maintenance district, the repair of quays and port surfaces and the provision of equipment for the port of Durres, technical assistance (TA) to improve the market orientation of the sector and implementthe project, a study and follow-upprogram to improve road safety, and a study to determine the future role of AlbanianRailways. The civil works and equipment for the port of Durres are being cofinancedby the Kuwait Fund. -6- 1.12 Project implementationis generally satisfactory. Implementationwas delayed for a short time by the transfer of the General Roads Directorate (GRD, formerly the National Roads Directorate) from the Ministry of Industry, Transport and Trade (MOT, formerly the Ministry of Transport and Communications)to the Ministryof Constructionand Tourism (MOC, formerly the Ministry of Construction, Housing and Territorial Adjustment). The project has already achievedresults in terms of increasing the road maintenancebudget, establishinglocal/foreign joint ventures to strengthen the domestic contractingindustry, introducing competitivebidding procedures for the procurement of works and equipment, and expediting the privatization of MOT truck and bus companies. The main lessons learned are the importance of keeping the project objectives and design straightforward, and providing technical assistance through experienced outside advisors that is within the absorptive capacity of the borrower.
D. Future Planning in the TransportSector
1.13 Government plans for future investments in the transport sector are generally reasonable in light of the difficult issues involved. The rate of investment will depend on the availabilityof funds, although the size of the road problem, including rural roads, far outstrips investmentsmade to date, as well as the Government'sfuture financialpossibilities. In the roads sector, the principal ongoing or reasonably firm projects include road rehabilitation works and purchase of maintenanceequipment under the ongoingTransport Project, additionalmaintenance equipment and buses, a bus administrationbuilding for Tirana, and the proposed Rural Roads Project. The GOA also plans to rehabilitate the Miloti-Yugoslavia(Montenegro) border road. A decision on the extent and timing of this part of the project will depend on the outcome of feasibility studies and on the extent of the rehabilitation of the Tirana - Durres - Rrogozhina railway line. This decision, in turn, depends on the outcome of the railway study (para 1.11). Road investmentsare discussed further in Chapter II.
1.14 Port investmentsinclude the rehabilitationworks and equipmentpurchased under the Transport Project, possible construction of a grain silo (which should probably now be postponeddue to a recent declinein grain traffic), and a ferry terminal to accommodateroll on - roll off traffic, which is growing rapidly. The GOA also plans to improve the main airport at Tirana, where an investment of about US$15 - 20 million is strongly justified on traffic and safety grounds.
HI.ROADS
A. Network and Traffic
2.01 There are approximately 18,000 km of roads in Albania. Of these, 2,400 km are classifiedas primary and 5,000 km as secondaryroads, while 9,500 km are unclassifiedtertiary or local (rural) roads. There are also some 1,000 km of urban streets (Annex 2.1). About 90 percent of the primary and 15 percent of the secondaryroads are paved. There are a few fully -7- engineered gravel roads, but most of the rural roads have a robust but uncomfortable stone- pitched road base, or are seasonal tracks. The conditionof the network varies. The primary roads are generallyin a poor but stablecondition, but design standardsare outdated,construction practices are poor, and the roads have not been well maintained, particularly during the last several years. The secondary and tertiary networks have, for some years, been almost totally neglected. Many of these roads are passable only to four wheel drive vehicles during the dry season. It is estimated that there are around 400 villages and numerous settlementsin Albania with a combinedpopulation of nearly one millionpeople that are inaccessibleto four-wheeldrive vehicles during at least part of the year (para. 1.02). The basic structures of these roads are modest but usable. Drainage varies widely; in someplaces it requires only the addition of a few culverts, while in others it needs to be fully reconstructed.
2.02 The network was designed to carry a small fleet of state owned vehicles, in an era when there were severe restrictionson personal mobility. The number of registeredvehicles has grown some six-fold during the last four years and is expected to continue growing rapidly (para. 1.10). Traffic is heaviest on the main roads linking Tirana to Durres, and Durres to the South (as far as Vlora), with traffic levels ranging from 5,000 to as much as 11,000 vpd. Traffic on the main road from Tirana to the North now ranges between 2,000 to 4,000 vpd, while traffic on the main road betweenTirana and the East (FYR Macedonia)ranged from 1,000 to 2,500 vpd. Traffic counts carried out by project consultantson 40 representative sections of secondary and tertiary roads in the project ranged from 60 vpd to a high of 1,670 vpd (excluding agricultural and animal drawn traffic). Advisors under the Transport Project are assisting GRD to establish a regular system of traffic counting. Truck sizes have increased from a typical weight of five tons per single axle to ten tons per single axle on the asphaltedroads (often, 11.5 tons as presently authorized in the European Community), and six tons on the rest of the network. Significant numbers of heavy articulated trucks are now in use, and these are even appearingon tertiary roads. There are no axle-loadlimitations at present, and this issue is being investigated with the assistance of advisors under the Transport Project. As a consequence, almost all of the paved roads need to be rehabilitated, investments are required to increase capacity on some sections of primary roads, and sections of the secondary and tertiary networks require improvement.
B. Administration and Organization
2.03 Administrationof the road system is divided between the "national" road network of 7,400 km, 1,000 km of "municipal"roads, and the remaining 9,500 km of "local" roads. As of December 1994, the primary and secondaryroads of the "national" system are administered by the Ministry of Construction and Tourism (MOC) through the General Roads Directorate (GRD) in Tirana. GRD was under the responsibilityof the Ministry of Industry, Transport and Trade (MOT) until December 1993. While final administrative arrangements are still being refined, GRD has been placed under the Minister of MOC in a similar way to various institutes which have their own budgets, as shown in Chart 1. Consultantsfinanced under the Transport Project are presently assisting MOC to further define the responsibilities and organization of GRD, with a view to establishing a westem style road administration (in the past, GRD -8- concentratedprimarily on preparing and monitoringmulti-year road expenditureplans). GRD's administration and accounting systems were reviewed and found satisfactory to process statements of expenditure (SOEs).
2.04 GRD's field organization currently consists of 28 District Road Directorates (DRDs), corresponding to the 28 former administrative districts in the country. The nation's districts were recently redrawn, so that today there are 36 administrative districts in Albania. GRD appoints DRD's managers and approves their budget. Road maintenance activities are undertaken by the DRDs with a high degree of autonomy. Each DRD has a workshop for regular repairs and maintenanceof equipment,but major overhaulsare performed at the central workshop in Tirana. DRDs are divided into three to five executive units, called crews. Each crew is directed by an engineer or technician, and is responsible for all routine and winter maintenance.The organizationalstructure for a typicaldistrict is shown in Chart 2. The DRDs employed 5,405 persons as of January 1995, including 36 engineers, 327 technicians (often performing engineer's functions), 70 administrativestaff, and 4,972 laborers. The work force, all Albanian, is competentin traditionalengineering disciplines. However, Albaniawas isolated for more than 40 years, and road personnel require training in modem approaches to management, economics, and recent technologicaldevelopments. Financing for this type of assistance is being provided under the Transport Project.
2.05 Accordingto the Law No. 7572 on Local Governmentof June 10, 1992, the remainder of the road network is the responsibility of the 36 local elected legislative bodies called the district councils, with the possibility left open for them to delegate further to a commune or baskia (town) council. Althoughthe legal responsibilityfor this lowest level of the road system is clear, the system is not yet implemented. Most of these local roads used to be maintained by large state farms or cooperatives until they were dissolved. Neither the districts nor the communeshave a budget adequateto meet their responsibilitiesat present. In addition, they have insufficient technical capacity and, in matters related to roads, it appears common for the communeor baskia to approach the DRD for informal technicaladvice. The Ministry of Local Government plans to provide the district councils with more realistic budgets for road maintenanceand to arrange with individualcommunes for local sources of taxation to finance local road maintenancebeginning in 1995, as discussed below.
C. Construction and Maintenance
2.06 New road construction, rehabilitationand upgrading are presently carried out by a variety of organizations. SmaU and medium works are managed by DRD. The construction works for the new Tirana - Vora highway are directly administeredby a special cell created within the MOC. Under the Transport Project, rehabilitationworks on five road sections are administered by GRD, with project coordinationprovided by a Project ImplementationUnit (PIU) within the MOT. The Irrigation RehabilitationProject under the Ministry of Agriculture, the Rural Poverty AlleviationProject, and the proposed Rural DevelopmentProject, as well as various private bodies, are also financinga small amount of tertiary road improvements. IDA funds are being channeledthrough the Albania DevelopmentFund operating under the direction -9- of a multi-ministerialSteering Committee. The involvementof so many organizationsin road construction is a byproduct of the economic transition. In response to this situation, GRD is investigatingthe re-organizationof the roads sector with the assistance of consultants financed under the Transport Project. This study will be complementedby a study on the organization and managementof rural roads under the proposed project, as discussed in Chapter m.
2.07 Prior to 1991, construction was done exclusively by three autonomous state-owned enterprises, the National Road AsphaltingEnterprise under the jurisdiction of the MOT, and the National Bridge ConstructionEnterprise, and the Highway and Road ConstructionEnterprise under the jurisdiction of the MOC. The AsphaltingEnterprise has now formed a joint venture with an experiencedforeign constructionfirm. These state enterprises are facing a significantly decreasedwork load and are being privatized. A small-scaleprivate sector constructionindustry is developing that has acquired some limited experiencein managementand contracting skills, mostly in private building construction. While companyexperience in road constructionin the emerging private sector is limited, many of their key staff have extensive experience in road works from their former employment. In addition, a significant number of Albanians have practical constructionexperience from working in other countries. Domestic contractors would be assisted in improving their skills under the project, as discussed in Chapter III.
2.08 International competitive bidding for road works has been introduced and is already being applied under the Transport Project. In order to be eligible for road works in Albania, contractors have to register with MOC. The contractor's technical director is required to be an engineer with experiencein road works. Under the Transport Project, over 60 companiesapplied and 41 were prequalified, including state companies in joint ventures with foreign companies. It appears that the financial, technical, and managerial capacity of more than 20 of these companieswould be sufficientto execute significant improvementcontracts, i.e., 20 - 50 km, under the project and smaller contractors could competeeither by forming joint ventures or by bidding on smaller sized contracts.
2.09 The DRDs execute all the maintenance works on the national road network. Maintenanceworks are undertakenby a crew which is responsiblefor 30 to 50 km of road. The crews' headmen have long experience and are skilled in the definition and supervision of road maintenancethat has been, up until now, labor intensive. The DRD's maintenanceequipment, e.g., trucks, compactors,asphalt mixing plants, is mostlyvery old and largely unusable, and the ongoing Transport Project is financingequipment for the Tirana DRD. Additional maintenance equipment for other DRDs will be financed under the proposed Rural Roads Project. Private contractors appear to be bringing in road maintenanceequipment as required. There is little other maintenanceequipment available in Albania.
2.10 While many of GRD's roads are continuouslymaintained, the quality of the works is not always satisfactory and the work efficiency is low, mainly due to lack of equipment (e.g., for compacting) or proper supervision. Bituminous roads are repaired with asphalt concrete, penetration macadam, or low quality natural bituminous sand. Major repairs are done using asphalt concreteprepared at a central asphalt batchingplant, but not many plants are in working -10- order. Bituminoussand is frequentlyused to fill pot-holes, but compactionis left to the traffic, which is unsatisfactory.Repair of gravel roads is done sometimeswith river gravel but mainly with crushed gravel, which often is transported over long distances. Grading is generally done manually, and compaction is left to the traffic. A significant problem arises because of the standard design of stone-pitchedroads. Poor bonding between the stone base and the gravel surface results in the gravel being quicklylost, especiallywhen placed withoutcompacting. This problem would be addressed during the Rural Roads Project with the assistance of advisors. GRD intends to give most periodic maintenanceand some routine maintenancework to private contractors, and is being assisted under the Transport Project to accomplishthis task.
D. Planning and Supervision
2.11 The MOC, through GRD, is responsible for planning the main road network, subject to approval by the Ministry of Finance (MOF) and Parliament. GRD prepares all engineering design work with the collaborationof the Institute for Studiesand Projects No. 2 (see Chart 1). Recently, engineeringand economicsstaff have been leaving the governmentto becomeprivate engineering consultants in competitionwith government institutes. Road designs have to date followed those applied in Italy, and are appropriate to forecast traffic flows and physical characteristics.
2.12 Road works were formerly supervisedby the state enterprise which implementedthem. There are currently eight engineering companies registered with GRD to provide design and supervision services. Of these eight companies, seven are small independent consultants, consisting of one to two engineers and employing additional staff for specific projects; the "Institute No. 2" is presentlyin the process of becomingprivatized. Three laboratoriescurrently provide laboratory services, the Institute for ConstructionTechnology, mainly for construction materials, the Hydro-geotechnicalInstitute for earthworks and road base materials, and the TechnicalUniversity for a limited number of tests. It is anticipatedthat supervisionconsultants required under the Rural Roads Project would form a foreign/localjoint venture, which would assist in developing the local consultingindustry in Albania, as discussed in Chapter III.
E. Expendituresand Financing
2.13 Road expendituresaveraged about US$10million equivalentper year, during the 1980s based on the official exchangerate, which must be interpretedwith caution becauseof distortions in the economy and statistics. About 70 percent of this amount was spent on GRD roads and 30 percent on the rest of the network. Around US$ 6.5 million of the total amount was spent on maintenance with the objective of keeping the roads passable at minimum possible cost. Maintenanceexpenditures fell in the late 1980s and early 1990sdue to budgetary constraints, reaching a low of US$3.5 million equivalentin 1992. The GOA then increasedits maintenance budget for GRD roads above the level agreed under the Transport Project. The 1994 maintenancebudget is about US$ 8.0 million equivalent, or about US$ 1,100 per kilometer. This would be sufficientto maintain GRD roads if the road network and GRD equipmentwere in good condition, which they are not. Investments are required to catch up with the -11- maintenance backlog and to replace old equipment, which is being supported under the Transport Project and proposed project.
2.14 Almostall of GRD's paved road network (about 2,800 km, Annex 2.1) is in bad to fair condition (para. 2.01). Rehabilitationof almost all of these roads is likely to be economically justified, considering that most of these roads carry more than 2,000 vehicles per day, there is a rapid growth trend for traffic (para. 1.10), and axle loads have recently increased (para. 2.02). However, this would require an investment of some US$280 million to carry out (US$100,000/km). In addition, someof the paved roads require investmentsto increasecapacity (town bypasses, climbing lanes, possibly some four-lane construction), local roads need to be improved, and all roads need to be maintained.Many other countries spend around one percent of GNP on their road networks, with some spending as much as two percent. Considering Albania's needs, the Governmentneeds to find a way to spend around US$25 million each year. (about 2.2 percent of 1993 GNP) on their paved road network. This wouldpermit them to carry out one cycle of rehabilitation on their paved roads in about 16 years, and to budget US$ 8.0 million per year for road maintenance. This appears to be beyond the GOA's budgetary possibilities. Most funds would, therefore, need to be provided on concessionalterms by the internationalfinancing institutions (IFIs). The Bank intends to raise this issue with the IFIs, and to consider the preparation of further road projects.
2.15 Road expendituresare funded from the budget. Road fuel was subsidized until 1992. Category 2 gasoline (supposedly70 octane, but more typically 55 octane at that time) sold for about US$ 0.18 equivalentper liter and diesel fuel sold for about US$ 0.12 per liter. The GOA then increased the quality and price of category 2 gasoline to US$0.70/1 equivalent in 1994, including a real tax elementof about US$0.51/1,and raised the price of diesel fuel to US$0.41 equivalent per liter, including a real tax element of about US$0.23 per liter, exceeding the amounts agreed under the Transport Project'. The GOA does not presently collect other significant taxes from road users except vehicle import duties and license fees. MOT is investigating the establishment of a comprehensive system of road user charges with the assistance of advisors financedunder the Transport Project. The GOA would be asked to agree at negotiationsto allocate funds to maintainrural roads improved under the project, as discussed in Chapter mI.
2.16 The procedure for approving and using national road funds begins with requests that are prepared by the planning section of the DRD, and then sent by the DRD to GRD for approval. GRD assembles and vets these requests, and submits a combined road budget for approval throughMOC and MOF to Parliament. Followingadoption of the Governmentbudget, MOF sends funds for most DRDs to the District Authority Bank and the funds are then withdrawn by the DRD and used to pay the cost of salaries, materials, and general operations. The District Authority Bank is used for historicalreasons, and this system is subject to review during the ongoing banking systemreforms. In the case of local roads, baskias and communes
it real tax element defined as the retail price less border price and distribution costs. -12- presently receive a small amount of money through the Ministry of Local Government (since December 1994 incorporated into the Ministry of Internal Affairs), which is under review as discussed (para. 1.04). The GOA agreed at negotiationsto provide sufficientfunds and instruct GRD to maintain project roads, and to carry out a study and implement agreed recommendationson administering and financing all non-GRD roads under the project, as discussed in Chapter Im.
F. Road Transport
2.17 Under the previous regime, MOT and other Government agencies operated almost all road vehicles. The GOA then embarkedon a privatizationprogram, coordinatedby the National Agency for Privatization. More than two-thirds of Albania's vehicle fleet is now privately owned. MOT is now close to completingthe privatizationof its former fleet of around 6,000 vehicles, using a variety of methods. Those which remain operate essentially as private companies since MOT no longer provides them with any financial support. MOT is working to overcome the remaining problems such as valuation of assets, requirement to retain all personnel, lack of knowledgeof marketingand businesspractices with the assistance of advisors provided by the Netherlands,and under the Transport Project. Other ministries also operated truck and bus fleets, which were formerly dedicated to organizations belonging to these ministries, and can be considered as own account transport. Many of the large enterprises to which these fleets belong are now closed, and the vehicles are in poor condition. A large number of trucks and buses have also been imported by the private sector since 1990, mostly used vehicles of western manufacture. There is now sufficient truck capacity in Albania to transport the nation's agricultural inputs and outputson the rural roads to be improved under the project.
2.18 Traffic accidentsare becomingan increasingly serious problem, paralleling the rapid growth of the vehicle fleet. There were 317 highway fatalities during the first ten months of 1993 comparedto 145 in all of 1990 (updatedstatistics not yet available from GRD). This gives Albania by far the highest road accident rate in Europe, e.g. about 20 times the death rate per vehicle-kilometer as in Italy. Reducing accident rates requires a multi-disciplinaryeffort, including identifyingand correcting unsafe places on the roads (black spots), introducing and enforcing a vehicle inspectionsystem, preventing drunk driving, improving the enforcement of traffic regulations, improving access to medical help, and education and publicity campaigns. MOT and GRD are working, in collaboration with the police, on the identification of black spots, and on channelizingnon-motorized traffic and agricultural tractors on the main roads. An advisor financedunder the Transport Project is assisting MOT and other Ministries to define and implement a program to improve road safety.
G. Environmental Aspects
2.19 The GOA has long recognized the importance of environmental issues, passing numerous laws and regulations during the last four decades. However, little has been done in practice, so that rivers, lakes, the Adriatic Sea at river outlets, and air at specific locations are -13- highly polluted. The main sources of pollution are mining (erosion and water pollution), heavy and light industry (water and air pollution), energy (air pollution) and urban areas (sewage). Air pollution caused by vehicle emissions is not yet a major issue, although this may become a problem in the future as the fleet continuesto expand. The MOT advisors financed under the Transport Project are making preliminary recommendationsconcerning vehicle emission standards and other environmentalmatters. Steps are also being taken to mitigate any adverse impact from rural road construction under this project, as discussed in Chapter Im.
HI. THE PROJECT
A. Project Objectives
3.01 The Rural Roads Project supports the Country Assistance Strategy for Albania (reviewed by the Board on March 8, 1994)by rehabilitatingpublic infrastructure that has fallen into such state of disrepair that it is a major impedimentto the developmentof the local private sector as well as to foreign direct investment,and by supportingthe agricultural sector in which Albania has comparativeadvantage. The main objectives of the project are to:
(a) promote agricultural developmentby rehabilitatingand maintainingrural roads serving agricultural areas, and improve access, economicand social services for rural population centers; (b) establish the institutional and financial arrangements for administering and maintainingrural roads on a sustainablebasis; (c) reduce poverty and increase employmentby carrying out project works with labor intensive methods; and (d) encouragethe developmentof the domestic contractingand consultingindustries.
The project directly serves an agricultural area of around 150,000 ha with a total of about 425,000 people (19 percent of the rural populationof Albania) as discussed in Chapter IV. It will provide 12,000 man years of work over three years in 20 districts containing 60 percent (about 168,000) of the nation's unemploymentand will create 500 permanent jobs for the maintenanceof its assets. Consequentlywith these potentialachievements, the project has been rated as "PovertyCategory: Program of TargetedIntervention" in accordancewith the provisions of O.D. 4.15, a classificationexclusively reserved for projects with strictly direct and strong impact on the alleviation of poverty.
B. Project Description
3.02 The main thrust of the 1996 - 1998 National Rural Roads DevelopmentProgram is to selectively rehabilitate and improve the rural road network, and to establish a satisfactory -14- maintenance managementsystem. The Rural (Feeder) Roads Study2, financed by the Swiss Government with IDA as ExecutingAgency, has identified a three-year (1996-1998)time slice (44 months includingeight monthsbefore 1996 for preparationand mobilizationof sub-projects) in whichall sub-projects, subjectto confirmationand possible amendmentbefore implementation takes place, meet agreed selection criteria. The project components are:
(a) improvementof around975 km of rural roads by contractorsusing labor intensive methods (US$24.40 million, excluding contingencies); (b) provision of office and transport equipment (US$0.85 million); (c) operational costs (US$0.33 million); (d) supervision of works by an internationalteam of consulting engineers (US$1.00 million); (e) technical assistance (TA) (US$0.30 million), Project Coordinator (US$0.40 million), and training (US$0.20million)to implement the project; and (f) an Organizationand Managementstudy (US$0.30million), including an inventory of the 9,500-km rural road network and an analysis and definition of the best institutional, managerial, and financial arrangements for its administration.
Project roads have been selected on the basis of their potential for increasingagricultural output, improving access to rural populationcenters, and reducing unemploymentwith the advice and contribution of the Ministry of Agriculture, the Ministry of Labor, and the Ministry of Transport, as discussed in Chapter IV.
3.03 Improvement of Roads (975 kIn, US$24.40 Million). Eighty five project roads (Annex 3.1, Nos. 1 through 85) have been selectedin fourteendistricts (Map IBRD 26231) from two agricultural regions, the Adriatic coastal plane north (Map IBRD 26232) and south (Map IBRD 26233) the city port of Durres (Durres, Tirana, Kruja, Laci, Lezha, Shkodra, Kavaja, Peqini, Lushnja, Fieri and Vlora districts), and the southeastern region (Map IBRD 26234) around the city of Korca (Korca, Pogradeci and Devolli districts). Five additional economically justified roads (Annex 3.1, Nos. 86 through 90) have been included in six additional (Topoje, Hasi, Gramshi, Berati, Skrapar and Saranda)districts (Map IBRD 26725)at the request of GOA. They are located in areas where poverty, poor access, and lack of alternative investment possibilities are chronic. All works permitting substitution of equipment for labor, would be carried out through labor intensive methods, unless otherwise agreed by IDA. This was agreed at negotiations (para. 5.01(a)). On the few road construction activities less suitable to labor intensive methods, e.g., compactionof soils and long materials haulages, the use of equipment will be kept to the minimum to guarantee satisfactory results.
3.04 The roads will be improved according to road, structures, and soil condition, and to the anticipatedvolume of traffic. The expected traffic volumes in the year 2000 of over 250, between250 and 100, and less than 100 vehiclesper day (vpd) have been used to define the road
2/ in its draftFinal Report of July 1994 and SupplementaryReport of December 1994. -15- width (between 6.50 and 5.0m), the carriageway width (between 5.0 and 3.50m), and the type of surfacing, i.e., penetration macadam (PM) for more than 250 vpd and gravel for the other roads as detailed in Annex 3.2. Short road sections in high rainfall areas with steep gradients as well as within towns, will be providedwith PM surfaces in order to avoid rapid deterioration. These paved sections will be observed in order to compare performance, durability and maintenancerequirements with gravel sections in the same conditions, in order to judge cost effectiveness.
3.05 Forty percent of the 975 km of roads will be improved with a gravel wearing course, and 60 percent will be paved, with the surface type selected on the basis of economiccriteria as discussed in Chapter IV. Rehabilitatedroads usually require regravelling every five years. In the past, regravelling requirements were not met due to deficient (or non-existent) maintenancemanagement, and financialconstraints (para. 2.01). Once the network of improved rural roads expands, the backlog of regraveling needs will increase, also leading to more deterioration of rehabilitated roads. Therefore, an expansion in rehabilitation can be justified only if the follow up regravelling requirements can be met. To reverse the present trend, the project will provide funds for routine maintenanceequipment (para. 3.06). GOA will provide sufficient funds, estimated at US$375 per km/year as an absolute minimum for the routine maintenance of the 975 km. These funds can be provided mainly as part of the revenues obtained from the fuel tax (para. 2.15). All routine maintenanceactivities will be carried out through the length-mansystem of contracting. Grass cutting, cleaning of culverts and ditches, patching, and care of edge-plantedtrees, will be the responsibilityof a single man contractor for every two km of road on average. The single man contractor will receive direct help from the respective District Road Directoratefor periodic regravelling and for asphalt tasks related to the PM surfaced roads, and in other cases, when required.
3.06 Office and Transport equipment (US$0.85Million). For a project involving many dispersed construction sites (90 road sections) and many organizations, adequate transport facilities and office equipment for efficient project managementand monitoring are essential. Presently, this is not available either in Government institutions or in private sector offices. Equipmentprovided for the GDR will include computersand office equipmentto allow proper monitoringand reporting, and supervisionvehicles. The DRDs will require computersand other equipment to allow proper accounting and monitoring of construction activities and the simultaneousbuild-up of a road data bank for maintenance,and also will need vehicles (pick-ups and motorbikes)for supervisionof constructionworks as well as maintenance. The international and the local consultants will need equipment for construction supervision and technical assistanceincluding vehiclesand motorbikesfor supervision,and basic drafting, surveying and measurement equipment for construction design and supervision. Furthermore, all project offices should be equipped with basic furniture and communications facilities. Details of equipment items to be provided and cost estimates are shown in Annex 3.3.
3.07 Operational costs (US$0.33Million). Due to very restricted budgets provided by the Governmentof Albaniafor operationalexpenses, the project will also contribute to the following costs: (a) incremental office operational expenses of the Project Implementation Unit (para. -16- 3.24); and (b) all DRDs' expenses that are additional to the normal running costs, i.e., internationalcommunications, office consumablerelated to the office equipment provided, and the operationalexpenses of supervisionvehicles and motorbikes (Annex 3.4).
3.08 Supervision of Works (US$1.00 M;llion). Given that the project will involve the employmentof a number of relatively inexperiencedcontractors, proper supervision will play an important role in ensuring that works meet targeted deadlines and are fulfilled according to plannedcost and qualityparameters, while at the same time followingprescribed labor-intensive constructionmethods. Neither local contractorsnor GRD/DRDshave the experiencedpersonnel required. Under these circumstances, an internationalconsulting firm will need to be hired in order to provide a team of independent engineering supervisors with extensive road building experience for design and supervision of works. This team should include a Resident Team Leader (25 man/months) and a Chief Resident Engineer (38 man/months). The Terms of Reference (TOR) are outlined in Annex 3.5. In total, about 40 contract packages during the period 1996-1998,scattered across 20 districts, will have to be supervised. Successwill require a strong organizationalforce. The main tasks of the team will include:
* define contract packages * review prequalificationand tender documents * advise on evaluatingprequalifications, tenders, and on contract negotiations * review designs (and confirm traffic) of roads to be improved * prepare constructiondrawings with the contractors * supervise construction works (together with the contractors), including quality control, cost control, measurement, and progress control * assist contractors in preparing bills and certifications of bills * report to the DRDs, and to the PIU within the GRD
Hiring of the international consultant team of supervisory engineers should be a condition of effectiveness of the Credit (para. 5.04).
3.09 The international consultantsare expected to associate with and lead local engineers, so that the project will contribute to the development of local consultants by a step wise procedure: during the first phase, local engineers will be engagedas individualsfor about a year, receiving training and support in design, supervision, contract management, and management of a small company, and during the second phase, they will be engaged as local private independentconsulting firms under the leadership of the internationalconsultants. A different group of local engineers will be made responsible for each of the following three groups of districts (altogether comprising 230 man/months): (a) Tirana and northern regions (Tirana, Kruja, Laci, Lezha, and Shkodra, Map IBRD 26232); (b) southern regions (Durres, Kavaja, Lushnja, Pequini, Fier, and Vlora, Map IBRD 26233); and (c) southeastern regions (Korca, Pogradeci, and Devolli, Map IBRD 26234) and five additionalroads (para. 3.03 and Map IBRD 26725). The local consultantswill be responsiblefor day to day supervisionof all construction works. This will include making all necessaryadaptations of the designs to local site conditions. -17- 3.10 TechnicalAssistance and Training (TA) (US$0.90 Million). TA and training are required by the employers (GRD and DRDs), the contractors oocal contractors), and the engineers (local consulting and individual engineers). In order to assure success, several additional tasks should be provided by the team of international consultants. These tasks, defined and detailed in their Terms of Reference (Annex 3.5) are to assist:
* GRD in project management, including development of necessary planning, monitoring, and managementtools * DRDs in managementof contracts, accounting, and assumption of the role of the Employer * DRDs in designing and implementing a maintenance concept, and management system * local contractors in methods of on site organization, management of labor and equipment, measurement,and billing * local consultants in supervision, contract management,and company management (administration,cost calculationand control, quality assurance).
3.11 The TA described above would require specific training courses as follows: (a) for GRD -- on the managementof contracts (FIDIC), and training in the use of computer facilities, followedby study tours to western Europe (3 - 10 day tours of 6 persons); (b) for the DRDs -- management of contracts (FIDIC), road maintenance management, accounting and use of computer facilities; (c) for local contractors -- seminars on bidding procedures and documentation, use of labor-intensive construction methods, measurement and billing in contracts, and equipment management;and (d) for the local engineering consultants-- training in supervision of contracts (measurementand billing, control of cost,quality, and progress) and in the best ways to build up and manage independentconsulting offices. The above TA and subsequent training will require 13 man/months from the resident international supervisory consultant team. In addition, 16 man/months of assistance will be provided by short term specialistswho will provide assistance in accounting, specialaspects of contracting (e.g. use of FIDIC for claims), site assistance for contractors, formation and management of consulting companies, road maintenancemanagement, and technicalmatters (pavementtechnology, erosion protection, small structures, etc.). Details of this training and related estimated costs are provided in Annex 3.6.
3.12 The project also requires a Project Coordinator (para. 3.25). The position will cover 44 months of the project, and will commence8 months before the physical start of the project to allow timely preparationof works. The Project Coordinatorwill be supportedby professional and supporting staff, and will receive advice and support from the specialists of other departmentswithin GRD and from the international(supervision) consultants. The TOR for this position are included in Annex 3.7. The appointmentof the Project Coordinator, a condition of Board presentation, was approved on May 1, 1995 (para. 3.25 and para. 5.03).
3.13 Organization and Management Study (US$0.30 M;llion). GRD is the only organization capable of managingand maintainingproject roads until permanent administrative -18- and financial arrangements are established. The 36 new Administrative Districts have been made legally responsible for the approximately9,500 km of roads which are not administered by GRD, excluding urban streets and roads directly administered by forestry or industrial enterprises, but lack funds and technical expertise to do the work (para. 2.05).
3.14 The purpose of the Organization and Management Study will be to identify and inventory the non-GRDroad network, and to analyze, recommendand prepare to implement the most appropriate system for assuring its administration,financing and maintenance. The study will determine whether the best solution is to decentralizeresponsibilities to the communesor an association of communes (decentralized solution), or centralize responsibility under GRD, e.g., through a sub-directoratefor rural roads (centralizedsolution). Other possibilitiesinclude a mixture of GRD and main commune responsibilities, or to have GRD only intervene in the most difficult tasks and provide technical assistance to the communes. The Study (30man/months)will: (a) identify the non-GRDroad network; (b) review existing arrangements for managingnon-GRD roads; (c) assess the capacity of GRD to administer additional roads; (d) assess the capacity of the Districts and representativeCommunes for maintainingnon-GRD roads; (e) review the role of central Governmentfor fundingthe maintenanceof non-GRDroads; (f) assess the availability of local contracting capacity; (g) recommend the most cost effective means of maintainingthe non-GRDnetwork; (h) developstructures, job classifications, staffing requirements and the levels of authority for the DRDs and/or other responsible organizations; (i) determine training and interim institutional requirements; (j) inventory the non-GRD road network; (k) define work methods, prepare an indicativework program and determine budgetary requirements and financing sources for each responsible organization; (1) review legal instrumentsand propose necessary changes; and (m) prepare a practical implementationplan for review and decisionby Govemment. The TOR for the Organizationand ManagementStudy are provided in Annex 3.8. The Governmentagreed at negotiationsto complete an action plan not later than July 31, 1997, and to carry out such a plan to improve the administration and maintenance of non-GRD roads, including implementing the recommendations of the OrganizationalManagement Study as agreed with IDA.
C. Relation to Other Projects in the Sector
3.15 Other World Bank Group projects with road sector components are also operating in Albania, namely: (a) the Rural Poverty Alleviation project (RPAP); (b) the Irrigation Rehabilitationproject (IRP); and (c) the InternationalFund for AgriculturalDevelopment (IFAD) projects. The RPAP and IFAD projects have objectives more directed to immediate social support and their roads programs are operatingon smaUtertiary Oocal)roads within communes, presently in areas not coveredby the Rural Roads Project. Therefore, no requirement of direct coordinationor cooperationwill arise in those cases. The IRP, effective since November 1994, is financing some access roads for machinery and equipment to irrigation works. Since these roads carry almost no other traffic, special coordination with the Rural Roads Project is not required. -19- D. Cost Estimates
3.16 The estimated total cost of the project, including taxes and physical and price contingencies amounts to US$33.6 million equivalent with a foreign exchange component of about US$7.91 million equivalent or 24 percent of total project cost. The costs of the different project components are detailed in their specific paragraphs (paras. 3.02 through 3.13, and 3.18) and subsequent Annexes. A summary of these project components and cost estimates is given in Table 3.1 below.
Table 3.1 Project Components and Cost Estimate (US$ million) Component Local Foreign Total F.C.(%) A. Road Works Improvementof 975Km. of rural roads Oabor intensive) 20.74 3.66 24.40 15 B. Office and Transport Equipment Equipment, vehicles, spare 0.85 0.85 100 parts, tools, and materials C. OperationalCosts 0.07 0.26 0.33 100 D. Supervisionof Works (A) 0.20 0.80 1.00 80 above E. Technical Assistanceand Training (i) TA 0.06 0.24 0.30 80 (ii) Project Coordinator 0.09 0.31 0.40 80 (ii) Training 0A 0 010 0 .20 50 Subtotal 0.25 0.65 0.90 F. Organizationand 0.05 0.25 0.30 80 ManagementStudy Base Cost (A+B+C+D+E+F) 21.31 6.47 27.78 G. Contingencies Physical (10 percent) 2.13 0.64 2.77 Price 2.25 0 8U TOTAL 2791 2L& 24 -20- 3.17 Constructioncost estimates are based on quantities from engineering designs already prepared by consultantsand estimated at December 1994 unit costs. The foreign componentis estimated from a breakdownof cost elements. The local costs include taxes and duties estimated at about 5 percent of total costs. Costs of equipment and vehicles (exempt from import taxes and duties) and their operational costs, are based on the latest acquisitionsunder the Critical Imports Project (Credit 2404-ALB), the ongoing Transport Project, and on similar deliveries in the region.
3.18 Supervisionof works requiring 63 man/month from international consultant team at about US$10,000 m/rn and 230m/m from local consultants at about US$2,000 equivalentper m/m, amounts to about 4 percent of the constructioncost, a reasonable amount in works with such a complex managementorganization. Costs for the 29m/m for technical assistance,40m/m for project coordinator, and 30m/m for the Organizationand Management Study are based on an average of US$10,000 per m/m. These costs are in line with those of similar ongoing operations in neighboring countries, and with those of the ongoing Transport Project. Costs for training in the GRD and DRDs (50 m/m) and for training local contractors and consultants (50 m/m) are estimatedat US$2,000 per m/m, taling into accountthat most activities would consist of in-house training and that the most expensiveitem in internationaltraining, traveling, would mostly take place inside Europe and would be relativelyinexpensive. The technical assistance, training, and O&M study costs are exempt from taxes and duties.
3.19 A physical contingencyof 10 percent has been included for all components to cover possible increases in quantities. This amount is appropriategiven the simple but quite precise primary engineeringdesigns available for the road works. Price contingencieshave been applied to base costs, expressed in US$ in accordancewith Bank Guidelinesfor each year 1995 through 1998, as follows: 2.0, 2.5, 2.7, and 2.5 percent.
E. Project Financing
3.20 The Borrower would be the Republic of Albania. The IDA would provide a credit of US$15.00 million equivalent (44.5 percent of total project cost), and the Government of Italy a Lira 24.80 billion or US$15.0 million equivalent (44.5 percent of total project cost) untied loan. The GOA will contribute, exclusivelyin local costs, US$3.60 million equivalentor 11 percent of the total project cost, i.e., the US$1.20 million annual amount which is all that it can afford to budget under current economic conditions. During negotiations, the Government confirmed that it will meet these local costs (para. 5.01(g)). A proposed financingplan, based on the above assumptions, and confirmed with the Governmentat negotiations (para. 5.01(h)) is shown in Table 3.2 below. -21- Table 3.2 FinancingPlan (includingContingencies) (in US$ million)
Component Local Foreign Total GOA IDA Italy A. Road Works Improvement of 975 Km. of Roads (labor intensive) 25.05 4.46 29.51 3.60 10.91 15.00 B. Office and Transport EAuivment Equipment, vehicles, spare parts, tools, and materials 1.03 1.03 1.03 C. Operational Costs 0.08 0.32 0.40 0.40 D. Supervision of Works (A) above 0.22 0.99 1.21 1.21 E. Technical Assistance and Trainin2 (i) TA 0.07 0.29 0.36 0.36 (ii) Project Coordinator 0.10 0.39 0.49 0.49 (ii) Training 0.11 0.13 0.24 0.24 (iii) Organization and Management Study 0.06 0.30 0.36 0.36 Total 25.69 7.91 33.60 36.
3.21 In addition, GOA is expected to contribute US$2.75 million equivalentover the five- year period 1997 to 2001 from budget allocationsfor financingof routine maintenanceactivities on the 975 km. of roads covered by the Rural Roads Project. During negotiations, assurances were obtained from GOA that sufficient budgetary allocations would be made to GRD for the maintenanceof rural roads in its budget in line with the agreed upon schedule for the 1997-2001 period, namely the equivalent of US$450,000 in fiscal year 1997, US$500,000 in FY1998, US$550,000 in FY1999, US$600,000 in FY2000 and US$650,000 in FY2001 (para. 5.01(i)).
F. Project Design, Organizationand Implementation
3.22 Design. Road designs have traditionally been for very low levels of traffic, constructionpractices of poor quality, and maintenanceinadequate, as discussed in Chapter II. The design approach for all project roads investigated has been to make maximum use of the existing structures and to propose well known construction methodswhich require a minimum -22- of equipment, and a maximum of local labor and local materials. This approach reduces technical risks during improvement. However, the outline design will require detail adaptation during construction, hence the importanceof selectingcompetent teams for project coordination and supervision.
3.23 Organization. Based on the present organizational set-up of the Albanian road administration, the implementationof the project will be organized through the GRD and its DRDs under the MOC. GRD will be responsible for all central functions of the project and DRDs for the execution of works within their respective districts (Annex 3.9 GRD and Project Organization). The Organizationand ManagementStudy (para. 3.13 above) will advise on the future organizationand responsibilitiesfor the whole rural road network, i.e., the fact that the districts and communesshould have a budgetappropriate to fulfill their responsibilities,and how their technical capacity should be established or provided by GRD.
3.24 ImplementationApproach and Schedule. The proposed IDA credit of US$15.00 million equivalent, and the Italian loan of Lira 24.80 billion or US$15.00 million equivalent, will be made to the GOA. The GRD will be responsiblefor the overall implementationof the project through a five-memberProject ImplementationUnit (PIU) established in GRD under the chairmanshipof H.E. the Ministry of Construction. The members of the PIU will include the aforementioned Chairman, GRD's Director General, a representative of the Ministry of Economy and Finance, MOF, and representativesof the Ministry of Agriculture, and Ministry of Labor. All project policy issues will be discussed and, in principle, decided by the PIU Board. Establishmentand staffing of the PIU, a conditionof negotiations, took place through MOC's Ministerial Order No. 648 of March 3, 1995 (para. 5.02).
3.25 The PIU would be assisted in its day-to-day implementationwork by an operations Secretariat in the GRD Foreign Aid Department including a Secretariat Chief (Engineer), Secretary (Economist),and an Accountant,all from GRD's staff. An important fourth member of and advisor to the Secretariat would be the Project Coordinator, an expatriate contract managementspecialist who, along with the other membersof the Secretariat, would be supported by GRD specialists from other departments and by the international consultants. The Project Coordinator will work and report on a day-to-day basis within the Secretariat but will be eventually responsiblebefore PIU's Chairman, the GRD's Director General. The main tasks of the Project Coordinator and the PIU Secretariat would be:
* project coordination, liaison to the Government, IDA, consultants and DRDs * planning of works and budgeting * resource allocation * selection, negotiation/awardof contract to the international consultant team and assistance to the consultantsin administrativematters * finalizationof prequalificationand tender documents * issue of guidelines for prequalificationand tendering to the DRDs * preparing overall project accounts * monitoring of progress, quality and financialperformance -23- * reporting (quarterly) to the Governmentand IDA * technical services to DRDs
The PIU's Secretariat Chief will be deeply involved in the 8-month preparation phase (para. 3.29) of the project. Its establishmentand staffing, a condition of negotiations, took place on March 3, 1995 through MOC's MinisterialOrder No. 648 (para. 5.02). The appointmentof the Project Coordinator, a condition of Board presentation, was approved on May 1, 1995 (para. 5.03).
3.26 The project will be implemented at the district level through the DRDs. DRD involvement is essential because they have experience in road works and labor-intensive maintenancein their respective districts, and because the project roads are or will be part of the network that they maintain in the future. The works will be executed with the DRDs as "Employer", the private contractors as "Contractor", and the international consultants in collaboration with local consultants as "Engineer". The tasks of the DRDs will include:
* project implementationat the district level * prequalificationof contractors * tendering, tender evaluationand award of contracts * approval of changes in construction matters (alterations of design/quantities, extension of time, termination, etc.) * inspection of operations, materials and works * contract payments to contractors as certified by the Engineer * monitoring of progress and actions of the Engineer * accountingof project expenses * reporting on progress and finances to the Project Coordinator
3.27 The road works componentwill start with a one-year pilot phase at reduced targets of 160-km(already selected,in principle)on fifteen roads in five districts (Durresi, Fieri, Lushnja, Laci, and Tirana) (Annex 3.10, Road ImprovementProgram - Year 1 Defined Roads) followed by a GOA/IDAreview and evaluationtowards the end of the first year, and not later than March 31, 1997. The review and evaluation shall be done on the basis of the results obtained in the followingproject aspects: (a) prequalificationand bidding procedures; (b) performance of GRD, DRDs, and consultants; (c) progress and quality of works; and (d) overall evolution of project costs. This approachwill allow weaknessesin the implementationarrangements to be identified, and experience will be gained with the organizational, managerial, and technical procedures. Suitable modificationswill be introducedin the followingtwo years of construction, on the basis GOAtIDA review. The list of roads to be built in the first year (1996) of the project was agreed at negotiations (para. 5.01(k)).
3.28 Intemational consultantsassisted by local consultants,under the conditionsformulated in para. 3.08, will be employed in the position of Engineer to assist GRD under terms and conditionsacceptable to IDA (TOR in Annex 3.5). Procurementof equipmentand vehicles, and TA and training will be under the direct responsibility of GRD and coordination of the PIU, -24- following submissionto IDA, for review and approval, of the related documentsand evaluation of the proposed experts. During negotiations(para. 5.01(1)),agreement was reached with GOA on the TORs for: (a) Engineering supervision of road works, Annex 3.5; (b) Project Coordinator, Annex 3.7; and (c) the Organizationand Management Study, Annex 3.8.
3.29 An eight-month project inception phase will be implemented May-December 1995 before physicalexecution of road works starts in January 1996. It will include operationalstart of the PIU with the Project Coordinatorin May 1995, followedby procurementand mobilization of the intemational engineer consultantteam, procurement and delivery of office and transport equipment, build up of local consultants, and preparation of documentation for road works contractors prequalificationsand bidding.
3.30 IDA has begun involvementin transport activity recently in Albania, which implies a lack of transport sector implementation profiles for the country. However, based on achievementsof similar projects and conditionsin Albania and the region, it is estimated that finalizationof the prequalificationand tender documentsprocess to completeproject set-up and mobilizationof road works would require a period of eight months (May-December1995) with intense involvement of the PIU and the project coordinator. Therefore, physical execution of the successive (1996-98) three one-year road works programs will start in January 1996. Acquisitionand delivery of the most urgent office and transport equipmentwill take place within the eight-monthperiod, i.e., before December 31, 1995. The technical assistance and training component will take place throughoutthe entire three year period in order to provide steady advice to GRD, and DRDs, and the local contractors and consultants, and to avoid disruptions in project implementationdue to excessive staff diversion resulting from fast training. The Organization and Management Study will be completed during the second year of project implementation, when a good knowledge of the reality of physical execution of road improvementsand local governance involvementpossibilities are already available.
3.31 The implementationschedule for project activities is shown in Annex 3.11. Credit effectiveness is expected in early second quarter 1995, the start of project preparation and mobilizationis planned for May 1995, physicalimplementation will begin in January 1996, and the project will be completed on December 31, 1998, with the proposed credit closing six monthslater on June 30, 1999. DRDs will report monthlyto PIU on their project activities, and PIU will submit quarterly reports to the IDA detailing the implementationof every project component activity on the basis of the DRDs' reports and based on the monitoring indicators detailed in Annex 3.12 (Project Monitoring Matrix). During negotiations, agreement was reached with the Governmenton the project implementationschedule (including, specifically, completion of the Organization and Management Study during the second year of project implementation),monitoring criteria, and reporting arrangements(para. 5.01(m)).
G. Procurement
3.32 The project elements and their estimated costs, and the procurement arrangementsare summarizedin Table 3.3. The cofinanciers, under joint financingapplying IDA's procurement -25- procedures, will be the GOA and the Government of Italy. The cofinancedproject costs are shown in the column marked N.I.F. (non- IDA financed).
Table 3.3 ProcurementArrangement (US$ million) 1
Total Project Element ICB LCB Others N.I.F.2 Cost
A. Road Works
Implementation of 975 Km. of roads 29.51 18.60 29.51 (labor intensive) (10.91) (10.91)
B. Office and Transport EQuipment
Equipment, vehicles, spare parts, tools and 0.80 0.233 1.03 materials (0.80) (0.23) (1.03)
C. Operational Costs 0.403 0.40 (0.40) (0.40)
D. Supervision of Works (A) above 1.214 1.21 (1.21) (1.21)
E. Technical Assistant and Training
(i) TA 0.364 0.36 (0.36) (0.36)
(ii) Project Coordinator 0.494 0.49 (0.49) (0.49) (iii) Training 0.244 0.24 (0.24) (0.24)
F. Orzanization and Manazement Study 0.364 0.36 (0.36) (0.36) Total 0.80 29.51 3.29 18.60 33.60 (0.80) (10.91) (3.29) (15.00)
Note: Figures in brackets are the respective amounts financed under IDA Credit.
1/ Including contingencies.
2/ Non-IDA financed. Also to be procured by LCB according to IDA guidelines.
3/ Direct Contracting (50 percent) and LS (50 percent). Local Shopping (LS) contracts below US$50,000. and maximum aggregate US$300,000.
4/ Consulting Services according to Bank Guidelines. -26- 3.33 The road works contracts would be procured in accordancewith the Bank's Guidelines for Procurement under IBRD Loans and IDA Credits dated May 1992, by Local Competitive Bidding (LCB) procedures, with foreign firms allowedto participate. LCB is the most efficient and economic way of procuring these works which by their nature (small contract value, scatteredgeographically, labor intensive, local prices below internationalmarkets) are unlikely to attract foreign competition. Contractors for contracts estimated above US$250,000 will be prequalified, those for contracts estimated at US$250,000and below, postqualified. Contracts exceeding US$250,000 equivalent will be pre-reviewed by the Association. The road works contracts will start in 1996 with a one-year pilot phase of about 160km(para. 3.27) divided into seven contract packagesin five districts, as specifiedin Annex 3.10. The contracts range from Lek 2.6 million (US$26,000equivalent) for contract 19 Kav 14 (Kavaje-Momli;1.6 km.) road to Lek 113.1 million (US$1,130,000equivalent) for contract2 Fie 21 (Varibopi-Gorishova;34.2 km.). Bank StandardBidding Documentsfor Procurementof Works by LCB for contracts above US$250,000equivalent (documents dated July 1994), and contracts for US$250,000equivalent and below (documentsdated June 1994)will be used. The contractpackages for years 1997 and 1998 will be defined based on experienceand best practices gained during the 1996 pilot phase. It is expected that numerous local contractors, most of them proceeding from recently commercializedand privatized state-owned companies into the private sector would be highly competitive with their country experience, low wage costs, and new financial status. The provisionof training for GRD, DRDs and local contractors and consultantswill further enhance their experience, efficiencyand competitiveness.
3.34 Equipment and vehicles for contracts estimated US$50,000 and above (Annex 3.3) wouldbe procured under InternationalCompetitive Bidding (ICB)procedures in accordancewith the Bank's Guidelinesfor Procurement under IBRD Loans and IDA Credits, dated May 1992. The Bank's Standard Bidding Documents for Procurement of Goods by ICB, dated May 1994 will be used (estimate of seven contracts ranging from US$60,000 to US$120,000). Goods manufactured in Albania would be granted a preference of 15 percent or related duties, whicheveris less, provided that the value added in Albania is more than 20 percent. Items of equipment, spare parts, tools, and materials, and those for operational costs (para. 3.07), estimated to cost less than US$50,000 equivalent each (total estimated aggregate cost of US$300,000, Table 3.3) would be procured by Local Shopping (L.S.) with a minimumof three quotationsfrom three different suppliers.Proprietary spare parts (totalestimated at US$300,000, Table 3.3) would be procured directly from original suppliers. All contracts estimated to cost US$50,000 equivalentor more, and contracts for goodsprocured under direct contracting,would be subject to IDA's prior review and approval of procurement documentation. These limits would result in prior review of contracts representing 80 percent of the credit component. The other contracts would be subject to ex-post review after award of contract.
3.35 Consultingservices, TA and Training will be carried out by qualified and experienced consultants selected in accordance with Bank Guidelines for the Use of Consultants (August 1981). Consulting services for supervision of construction works, the Organization and ManagementStudy (Table 3.1, and para. 3.18), and the Project Coordinator will be carried out by intemational consulting firms. TA and training activities will be contractedon the basis of a selectedlist of qualifiedconsulting firms and/or individual consultants(details in Annexes 3.5 and 3.6). All TORs documentsrelated to procurementof consulting services would be subject to prior review and approval by the Association. Consultants' contracts exceeding US$50,000 -27- equivalentwill be subject to IDA's prior review and approval. This was discussed and agreed at negotiations (para. 5.01(n)).
3.36 A Country ProcurementAssessment Report has not yet been completed. However, for the IDA-financedportion of the project, the Borrower would follow procedures consistent with the Bank's Procurement Guidelines. The Project ImplementationSchedule (Annex 3.11, page 2) includesa procurementplan indicatingmajor items, costs, methodsof procurement, and time schedule for all major procurement activities.
3.37 Procurement would be a main responsibilityof the PIU (para. 3.25) and of its Project Coordinator specialist financed under the project. Procurement information provided to IDA would include: (a) prompt reporting of contract award information; (b) comprehensive explanationof revised cost estimates for individual contracts and the total project; (c) revised timing of procurement action (including advertising, bidding, contract award, and completion time for individualcontracts); and (d) compliancewith aggregatelimits on p-;ecifiedmethods of procurement. During negotiations, agreement was reached with the Government on all procurement arrangements (para. 5.01(o)).
H. Disbursement
3.38 The proposed IDA Credit, SDR 10.1 millionor US$15.0 million equivalent, would be disbursed against the project componentsas follows:
Amount US$ (SDR) Pett Of Catgory Dacnp0on Million Eqadt Equiv. to be fimeubd
1. Roadworks 10.5 90 percent (7.04) 2. Goods 1.0 100 percent of fbreign expenditures, 100 percent of (0.68) local expenditures,(ex-factory co"), an 80 percent of local expendituresfor other items procured localy. 3. Operatonal Costs 0.4 100 percent (0.27)
4 Com_ants
(a) Supervisionof 1.0 100 percent Works (0.68) (b) TA and Training 0.8 100 percent (0.54) (c) Organizationand 0.3 100 percent Management (0.21) Study
S U 1.0 (0.68)
TlOTAL 15.0 (10.1) -28- 3.39 Disbursements against contracts for civil works and goods, valued at less than US$250,000 and US$50,000 respectively, would be made on the basis of statements of expenditures (SOE). During negotiations, agreement was reached with the Govemment that documentation to support expenditures financed under SOEs would be maintained by the Borrower and made available for review by IDA supervision missions in addition to being audited annually by auditors acceptable to the Association(para. 5.01(p)).
3.40 Retroactivefinancing up to a total of US$100,000is recommendedfor payments made by the Borrower after April 30, 1995, but before the date of credit signature. This would allow an early start on some critical items during the inceptionphase, such as the hiring of the Project Coordinator for the PIU, and the acquisitionof essential office equipment.
3.41 To facilitate disbursementsand reduce the volume of withdrawalapplications, IDA's share of the project would be financed through a Special Account (SA; revolving fund) which would be opened by the Borrower in the Bank of Albania. The authorized allocationfor the SA would be US$1.4 million, equivalentto about four months of project expendituresfinanced by IDA during the 3 years and 8 months (44 months) disbursement period for the project. However, unless the Associationshall otherwise agree, the authorizedallocation shall be limited to US$800,000 until the aggregate amount of withdrawals shall be equal to or exceed the equivalent of SDR3,000,000. Funds for equipment, vehicles, and spare parts would be withdrawn by the Borrower from the SA after approval of the ICB, local shopping, or direct contracting and related contract awards by the Association. Replenishment for technical assistance and for consultants for construction supervision would be made on the basis of appropriate documentation. Replenishmentof the SA would follow IDA procedures. The SA would be audited annually by independent auditors acceptable to IDA. During negotiations, agreement was reached with the Governmenton the establishmentand operation of the SA in accordance with the Albanian Treasury regulations, agreed with IDA, which require the establishmentof the SA in the Bank of Albania by the Treasury, the Treasury authorizing any payment into a commercial bank account managed by the PIU upon PIU's request to pay the expendituresunder the project (para. 5.01(q)).
3.42 A schedule of disbursements, based on the Project ImplementationSchedule (para. 3.30) is given in Annex 3.13. Albania is a new IDA member, with only the first activities of the Transport Project yet under implementation. Thus, there are no sectoral disbursement profiles available. However, the interest demonstrated by the Government and responsible agency GRD in the project, the urgency of the need of the works, equipment and TA, and the initial favorabledisbursement under the ongoing Transport Project wouldguarantee a reasonable project implementation period of 44 months. With an early second quarter 1995 credit effectivenessdate and a May 1, 1995 through December31, 1998project implementationperiod (para. 3.30 and Annex 3. 11), the proposed credit would be fully disbursed six months later on June 30, 1999.
I. Accountingand Auditing
3.43 Starting in May 1995, GRD would establish separate accounts through its PIU in accordancewith acceptable accountingprinciples, record all project expenditures and maintain -29- records on commitments, reimbursements, and the status of project funds on the basis of the accountingdone and released by every DRD. With respect to the amounts withdrawn on the basis of SOEs, GRD would maintain records on contracts, invoices, and evidence of payments readilyavailable for review. All records wouldalso reflectadequately the different contributions from the cofinanciersand the Govemment. GRD would submit to IDA a brief update of these accounts in the quarterly reports (para. 3.31). The PIU Secretary would have the project accounts, including SOEs, and the Special Account (para. 3.41), audited by an independent auditor (ikely together with other IDA projects in order to achievelower audit costs) acceptable to IDA, and would submit annuallyto IDA such audit accounts within six months of the end of each fiscal year. These requirementswere agreed on with the Governmentat negotiations(para. 5.01(r)).
J. Envirornent
3.44 The project has been classified as "B" for purposes of O.D. 4.01 on Environmental Assessment, meaning that only limited environmental review is required. A thorough environmental assessment was conducted, comprising the direct and indirect environmental impacts of rural roads rehabilitation and maintenance operations. Annex 3.14 contains a summary of the main results. Recommendationsof the assessment, detailing the mitigation measures to be taken, would be integrated into GRD's rural road planning design and works executionactivities during project implementation.
3.45 The project would not have significantindirect effects on the environment. Civil works are confined to rehabilitatingexisting roads. This should lead to a cleaner environment for the population living in settlements along the roads, as well as improve the delivery of social services, i.e., health care (hospitals, dispensaries), education (schools), water supply (easier access), fuel (delivery of gas instead of an ongoing deforestationprocess through the cutting of local wood), trade (easy access to markets), and urban crossing (PM for road sections through villages). The project would protect the areas adjacent to the roads from erosion through construction of side-drains, cross drainage structures, and retaining walls, and planting of vetiver. No population resettlementwould be necessary since the right of way of the roads is clear of housing construction. Furthermore, all road improvementswould take place within the public right-of-wayfor which the Governmenthas full ownership. The project would not affect any archaeologicalor historical site.
IV. ECONOMIC EVALUATION
A. Methodology
4.01 Economic rates of return (ERRs) and net present values (NPVs) were estimated for the road improvements included in the project which comprise 90 percent of project costs including contingencies. The calculations were based on a vehicle operating cost (VOC) approach.
4.02 The project area and roads were selected to have the maximumimpact on agricultural output and to improve access to rural population centers. Complementary irrigation improvementswill be carried out in some agricultural areas under the Irrigation Development Project. Most project roads are in "poor" or 'bad" condition, which is a desincentive for -30- farmers to commercializetheir production. In addition many farmers, particularly those from broken up state farms, are housed in apartment blocks in artificialvillages which are often many kilometersdistant from the land which they are now cultivating.Complementary investments and actions are normally required to increase agricultural output, and the absenceof any significant one of these could impede the developmentof the sector. This may include, in addition to road investments, irrigation improvements, clarification of property rights, an agricultural credit system, and suitable extension services. It is not possible to evaluate the economic benefit of any one of these complementaryinputs in isolation, although in the correct combination the combinedbenefit may be significant. The main complementaryinvestments in the agricultural project areas have been provided under the Irrigation DevelopmentProject. However, it is not possible to estimate the "producer's surplus" which could be separately attributed to the road investmentunder this project because of its complementarynature. The VOC approach, which was used in its place, significantlyunderstates the importance of the project to the development of the agriculture sector.
4.03 The project is also expectedto have other benefits which are difficult to quantify. One of the main purposesof the project is to increase employment(para. 3.01). The project, through the increase of agricultural production and subsequent employment, and through the direct creation of 12,000 man-yearsof work (road construction)over three years and 500 permanent jobs (road maintenance)will have a significant beneficialimpact on the alleviation of poverty and on the decrease of outward migrationin an area of 20 districts containing 60 percent (about 168,000) of Albania's total unemployment(para. 3.01). It will also help reduce rural poverty, improve access to rural populationareas, help with local Governmentreform by establishingan administrativeand financial system for maintainingall rural roads, encourage the development of the domestic contracting industry, and help reduce soil erosion. The ERR estimates, therefore, significantly understate the contribution of the project to Albania's economic development.
B. Project Area
4.04 Project roads were selectedin three stages. First, two project areas were identified on the basis of their potential for increasingagricultural output. Second, project roads were chosen within the two areas on the basis of their estimatedERRs. Third, road sections providing access to other rural district centers were added to achieve geographicbalance at GOA's request (para. 3.01). Factors considered in selectingproject areas were the current volume of agricultural production, the amount of arable land, population, unemployment, the number of persons receiving economic assistance, and proposed complementaryinvestments (primarily irrigation improvements), as shown in Annex 4.1. Forestry areas were not included in the project on the grounds that they could be more suitablyimproved under an integrated forestry project. Areas where other rural road improvementsare underway were mostly excluded to avoid duplication and confusionabout institutionalarrangements. The highest priority area was identified as the coastal plains, comprising the main agricultural areas in the new districts of Shkodra/Malesia e Madhe, Lezha, Laci, Kruja, Durres, Tirana, Kavaja, Peqini/Elbasani, Lushnja, Fieri/Mallakastra and Vlora. These districts provide about 63 percent of the Albania's agricultural output, include 58 percent of the country's population, and account for 56 percent of the Government's social assistance program (Annex 4.1). As noted, many of the road -31- improvementsin this area complementirrigation improvementsbeing made under the Irrigation RehabilitationProject. A second important agricultural area comprises the interior districts of Pogradeci,Korga, and Devolli. This area accountsfor 11 percent of agricultural value, 9 percent of the population, and 5 percent of the Government's social assistance program.
C. Calculation and Results
4.05 The economicrates of return (ERRs) from improving90 road sections included in the project were estimatedusing the Bank's HDM Im model. The model's equations were adjusted to reflect the high levels of roughness encountered. Present traffic levels were estimated on the basis of traffic counts and the size of the agricultural area and population served. Traffic was forecast taking into account the current (low) rate of motorizationin Albania, recent (high) traffic growth rates, motorizationrates in other countries, and the expectedgrowth of GDP, and forecasts of increases in agricultural output in the project area. Vehicle operating costs were estimated on the basis of internationalnorms adjusted for local income levels. Constructioncost estimates were adjusted to remove taxes. Costs were shadowpriced to reflect the high level of unemployment,and the higher world price of bitumen. Road maintenancecosts were taken into account. The analysis was based on a ten year period, with the residual value of the investments taken into account. Details of the economic evaluationare shown in Annex 4.2.
4.06 The ERR for road improvementsare estimatedto range from 11 percent to 140percent with a weightedaverage of 33 percent (Annex 3.1). The correspondingnet present value (NPV) at a 12 percent discount rate is estimated to be US$19.9 million (US$20,400/kin). If project costs are underestimatedby 25 percent (e.g., if labor costs increase), then the ERR would be 26 percent (NPV: US$ 16.9 million). If benefits are 25 percent less than expected(e.g., if the operatingcosts of mostlyold vehiclesare substantiallyoverestimated and traffic grows much less than expected)then the ERR would be a still satisfactory 22 percent (NPV: US$ 11.5 million), and the ERRs for about 252 km would fall below 10 percent. Traffic counts for marginalroads would be updated if necessary, and cost estimates refined during project implementation to assure that estimatedERRs for all road sections are above 10 percent (see below). The project is, therefore, considered to be economicallyjustified.
4.07 The economicevaluation was based on an assumed work program of 975 km (Annex 3.1). The Governmentagreed on the first year program at negotiations (para. 3.27). The list of roads and design standards for the subsequent year would be defined and agreed during project implementation. The GOA also agreed at negotiationsthat it will not undertake any rural road investmentsunder the project unless they are demonstrated,in a manner satisfactory to the Association, to have an ERR of at least 10 percent. (para. 5.01(s)).
D. Risks
4.08 Albania has made good progress in implementingits economicreform program under difficult economicconditions. The momentumfor reform is being sustained, so that the risk of a major setback in the reform process is consideredto be small. One country risk which cannot be assessed is the possible spread of regional conflicts. -32- 4.09 One project risk is that the GOA would not provide sufficient funds to maintain the project roads. However, they have increased the budget for maintainingthe main road network more rapidly than agreed under the ongoingTransport Project. A second project risk is that the GOA would fail to implementthe necessaryreforms at the local govemment level to administer and maintain the rural road network. However, they have already adopted legislationon local governmentreform assisted by IDA, and are preparing legislationto fund rural road maintenance (paras. 1.04 and 2.16). Project roads will be maintainedby GRD, and permanent arrangements for maintainingrural roads would be agreed with the Government following the Organization and Management Study conclusions and recommendations(para. 3.30). An additional risk relates to the complexityof organizinglabor intensive road works. We will minimize this risk by using consultantsfor supervision who are experiencedin this area, and by training GRD staff and local contractors. With the arrangementsand assurancesprovided under the project, risks are considered to be acceptable.
V. AGREEMENTS AND RECOMMENDATIONS
5.01 During negotiations, the following matters were discussed and agreed upon with the Borrower:
(a) road improvement works under the project to be executed, unless otherwise agreed with IDA, through labor intensive methods (para. 3.03);
(b) list and characteristics of the roads to be asphalted (paras. 3.03, 3.04, and Annex 3.1);
(c) list of equipment, vehicles, spare parts, tools, and materials to be financed (para. 3.06, and Annex 3.3);
(d) the list of training courses for GRD, DRDs, local contractors, and local consultants (paras. 3.10, 3.11, and Annex 3.6);
(e) not later than July 31, 1997, completean action plan, and carry out such a plan to improve the administrationand maintenanceof non-GRD roads, including implementingthe recommendationsof the Organizationand ManagementStudy as agreed with IDA (para. 3.14);
(f) project components,and cost estimates (para. 3.16),
(g) GOA's US$3.6 millioncontribution to the financingof the project (para. 3.20);
(h) project financing plan (para. 3.20, Table 3.2); -33- (i) provision of the following funds to GRD by the GOA for maintenance of project roads: US$450,000 in FY97, US$500,000 in FY98, US$550,000 in FY99, US$600,000 in FY2000, and US$650,000 in FY2001 (para. 3.21);
(j) establishmentand staffing of the PIU in a manner satisfactoryto the Association (para. 3.24);
(k) not later than March 31, 1997, GOA undertake with IDA a review and evaluation on the progress achieved on carrying out the pilot phase and agree on the subsequentmodifications (para. 3.27, and Annex 3.10);
(1) TOR for (a) Engineering Supervisionof road works (Annex 3.5), (b) Project Coordinator (Annex 3.7), and (c) Organizationand ManagementStudy (Annex 3.8), (para. 3.28);
(m) project implementationschedule (including preparation of the Organizationand Management Study during the second year of project implementation), monitoringcriteria, and reporting arrangements(para. 3.31; and Annexes 3.11 and 3.12);
(n) all consulting services TORs, and contracts exceeding US$50,000 will be subject to prior review and approval by the Association (para. 3.35);
(o) all procurement arrangements(para. 3.37);
(p) documentationto support expendituresfinanced under SOEs will be maintained by the Borrower and made available for review by IDA supervision missions in addition to being audited annually by auditors acceptable to the Association (para. 3.39);
(q) establishmentand operation of the Special Account (para. 3.41);
(r) PIU's Secretarywill have the project accounts, includingSOEs, and the Special Account, audited by an independentauditor acceptableto IDA, and will submit annually to IDA such audit reports within six months of the end of each fiscal year (para. 3.43); and
(s) GOA will not undertake any rural road investmentsunder the project unless they are demonstrated, in a manner satisfactory to the Association, to have an ERR of at least 10 percent (para. 4.07).
5.02 Establishment and staffing of the PIU (para. 3.24), and of its Secretariat (para. 3.25) were conditionsof negotiationsduly fulfilled through MOC's Ministerial Order Number 648 of March 3, 1995 (pam. 3.25). -34- 5.03 The appointment of the Project Coordinator, a condition of Board presentation, was approved on May 1, 1995 (paras. 3.12 and 3.25).
5.04 The hiring of the international consultant supervision team is a condition of effectivenessof the Credit (para. 3.08).
5.05 With the agreements reached above, the project is suitable for a SDR 10.1 million (US$15.0 million equivalent)credit under the standardIDA terms, with 40 year maturity, to the Government of Albania.
m:aIba%ia\fedWc.lf -35- Annex 2.1 Page 1 of 1 ALBANIA RURAL ROADS PROJECT
National Road Network, 1994*
General Survey Administered by GRD
District Primary Secondary Total Grand Total Asphalt Non-Asphalt Total Asphalt Non-Asphalt Asphlt Non-Asphalt Total
Berat 62 62 0 156 10 146 72 146 218 Bulqize 32 32 0 142 3 139 35 139 174 Biber 63 38 25 155 0 155 38 180 218 Durres 41 41 0 90 39 51 80 51 131 Elbasan 113 113 0 284 54 230 167 230 397 Fier 125 125 0 152 66 86 191 86 277 Gramsh 50 50 0 71 0 71 50 71 121 Girokaster 55 55 0 226 20 206 75 206 281 Kavaje 30 30 0 50 14 36 44 36 80 Kolonje 73 73 0 41 8 33 81 33 114 Korce 138 106 32 256 18 238 124 270 394 Kruje 84 84 0 81 10 71 94 71 165 Kukes 168 105 63 207 12 195 117 258 375 Lezhe 53 53 0 106 28 78 81 78 159 Librazhd 48 48 0 369 15 354 63 354 417 Lushnje 70 70 0 157 35 122 105 122 227 Mat 97 97 0 277 21 256 118 256 374 Mirdite 91 59 32 282 0 282 59 314 373 Permet 58 58 0 103 0 103 58 103 161 Pogradec 56 56 0 194 45 149 101 149 250 Puke 112 112 0 209 0 209 112 209 321 Sarande 116 116 0 146 29 117 145 117 262 Skrapar 35 35 0 108 2 106 37 106 143 Shkoder 148 148 0 317 63 254 211 254 465 Tepelene 92 58 34 118 19 99 77 133 210 Tirane 96 96 0 272 107 165 203 165 368 Tropoje 90 55 35 164 5 159 60 194 254 Vlore 175 149 26 243 47 196 196 222 418
Total 2371 2124 247 4976 670 4306 2794 4553 7347
'Based on the formnerdivision of the notion into 28 districts. Source: ITECOStudy, July 1994
M:%ALBANIA%FEEDER\AdNEX2-1.XLS 11301S6 -36- Annex 3.1 ALBAN IAPae1o3 RURAL ROADSPROJECT Page of 3 Road Improvement Program
Works Agric. Popul- Traffic Cumul. Length cost area ation vpd Cost Road: No. and name Type (km) (m Lek) (ha) served 2000 (m Lek) E.R.R.
1 Vio 8:FitoretoDellinja PM 11.2 29.7 2,138 5,782 989 30 131% 2 Fie 21 Varibopi/Gorishova PM/G 34.2 113.1 2,899 19,872 1,421 143 140% 3 Kav 6: Vor'eni/Luzi iV. to Beden PM 10.8 37.7 2,683 12,169 887 181 122% 4 Dev 12: Vranishti road PM 2.4 6.2 695 2,569 350 187 125% 5 Fie 18: Levani to Vjosa / Kashisht PM/G 13.3 26.3 1,836 7,532 773 213 81%
6 Fie 16: Pishe, Qarri and Bocova PM 12.4 33.7 1,619 5,192 549 247 67% 7 Lez I :ZejmanitoGryka e Lumit PM 9.5 24.4 1,240 4,687 493 271 92% 8 Tir 7 : Stermasito Kocaj Tavareni PM 13.6 27.7 2,396 5,864 668 299 70% 9 Lus 16 :Cerme to TerbuVTri Urat PWG 9.0 21.0 1,720 1,822 421 320 53% 10 Lus 11: Bishcukasito Germenj junct. G3 6.3 7.3 962 1,808 79 327 45%
11 Fie 10: Fier to Seman i Ri to NWjunct PM/G 15.6 42.1 2,077 2,439 607 369 47% 12 Dev10:Treniroad G5 4.1 9.5 812 2,884 199 379 79% 13 Kav 16: Spillejito Hasdushku (Rd3) PM/G 11.2 26.1 589 1,495 144 405 33% 14 VloI1: Xhyeina to Beshisht PM 11.5 27.2 3,090 9,534 877 432 48% 15 Peq 1: PeqinitoThansaj G5 12.5 30.1 1,295 3,960 206 462 47%
16 Kor 15: Pretusha to Zemblaku PM 23.7 60.9 2,746 9,494 453 523 50% 17 Dur 14: Shijaku to Hardishta G5 8.1 14.4 930 3,441 237 537 36% 18 Kav12:SynetoHajdaraj G5 5.9 15.6 1,572 3,638 147 553 28% 19 Kav 14: Kavajeto Momli G3 1.6 2.5 270 358 77 556 27% 20 Lus 6 :Grabjani to PlukiVTiranaroad PM 11.7 31.1 1,746 5,893 502 587 30%
21 Kor 1: Korca to Voskopi PM 8.5 19.2 2,458 4,490 500 606 36% 22 Fie 1 Agimi to Hasfurcasi PM 7.7 30.4 1,966 2,717 441 636 45% 23 Fie8:SukiPoshtemandArapaj PM 8.6 28.0 710 3,132 266 664 46% 24 Fie 7:Marinezato Suki Siperm PM 8.4 28.6 1,414 3,194 317 693 20% 25 Lus 10: Lushnje to Hysgjokaj/Gjuzaj PWG 22.2 55.4 3,192 6,324 357 748 29%
26 Fie 27 :Fier to Krapsi G5 8.5 22.8 840 1,620 136 771 23% 27 Fie 20 :Levani to Shtyllasi PM 3.8 13.2 1,089 1,953 271 784 37% 28 Dev 1 Poloska to Mirasi PM 16.2 41.6 4,864 11,900 680 826 32% 29 Dev 7: Biisht to HocishtlGraca PM 7.7 16.8 2,063 5,822 380 843 41% 30 Lus 3: Babunja to Mertishi PM 7.3 20.1 3,455 9,370 773 863 36%
31 Fie 26: Mbrostari to Agami PM 12.5 39.9 4,861 8,574 953 903 38% 32 Fie 11 Hoxara to Gjokalli (Rd 58) PM 5.8 14.6 890 1,776 234 917 36% 33 Kav 5: Kavaja to Bagoja PM 8.1 34.2 2,076 6,842 565 951 45% 34 Kor 18: Rembeci to Podgorij/Pretusha PWG 16.5 41.2 3,207 8,668 359 993 28% 35 Lac 1: Fushe Mamuras to Gorreja G5 19.5 36.1 2,100 2,700 225 1,029 24% Annex 3.1 Page 2 of 3
Works Agric Popul- Traffic Cumul. Length cost area ation vpd Cost Road: No. and name Type (km) (m Lek) (ha) served 2000 (m Lek) E.R.R.
36 Dur 7: Xhatzotajto QeretFlaka PM 8.4 22.4 1,340 2,934 513 1,051 17% 37 Lez 6: Tiranaroad to PirajVKodeli PM 13.3 37.3 1,286 2,622 374 1,088 39% 38 Sko 14: Ranxato Melgushi G5 6.0 18.1 790 3,034 236 1,107 45% 39 Lez5:Gramshito Dajci(Rd 37) PM 4.2 11.5 1,796 4,518 381 1,118 41% 40 Lac5 : FonatLaci to Gurez/FushKuqja G5 14.0 31.8 850 5,900 287 1,150 30%
41 Dur3: Sallmonajto Katundi i Ri PM 9.3 23.8 1,569 4,542 610 1,174 43% 42 Fie 33: Kurjanito Ngjeqari/All'bresi G5 10.2 32.8 1,110 4,050 140 1,206 26% 43 Dur 1: Maminasito Hamallaj PM 15.7 52.4 5,377 15,346 612 1,259 46% 44 Kru 9: Hasanito Mallkuci PM 7.5 16.3 1,255 3,814 452 1,275 42% 45 Kav7: Bagojato Demeni/Kry'dhi(Rd3) PM 21.0 17.3 3,389 8,416 338 1,292 39%
46 Lez2: Shenkolito Lezha PM 8.9 51.2 1,350 3,433 446 1,344 35% 47 Fie 29: RoscovecitoKurjani PM 5.2 20.8 2,010 6,638 482 1,364 24% 48 Fie 9: Fierito Mujallia PM 6.0 17.4 1,080 2,479 531 1,382 26% 49 Dev8: BilishtbtoBabanVStropani PM 6.7 16.1 983 2,977 293 1,398 21% 50 Sko 13: Hajmelito Shalgeti G5 8.4 39.5 1,200 2,880 178 1,437 14%
51 Lus 2: Babunjato Divjaka(Rd 30) PM 13.6 23.0 2,779 7,807 429 1,460 22% 52 Kor 8: Korceto Polena PM 8.6 17.8 1,205 2,177 254 1,478 29% 53 Lez 12 : Dajcito KoterrVN'shab(Rd 39) G3 6.2 25.3 563 1,365 167 1,503 18% 54 Dev5 :Kucito Perparimaj G5 8.0 7.9 754 1,825 151 1,511 16% 55 Kav4: Rrakullito Bagoja G5 8.8 12.8 682 2,850 227 1,524 28%
56 Lus 18: Gurito Karavastaja(Rd 51) G5 6.0 48.9 877 3,094 226 1,573 13% 57 Lus8:FierSheganitoFieriRi PM 7.8 17.9 2,197 6,394 419 1,591 19% 58 Fie13:TopojatoSheq-Marinasi PM/G 10.3 15.1 2,100 1,154 754 1,606 19% 59 Dev6 :Borshito Cipani(Rd 54) G5 3.5 31.1 414 1,029 105 1,637 35% 60 Kav1: Golemito Seferaj/Golemasi G3 4.1 7.8 750 2,104 176 1,645 27%
61 Lus7: Bubullinato KamcishtiAlmshi PM 15.9 18.4 3,378 7,287 523 1,663 21% 62 Kor 23 :Zvezda to Plasa PM 7.1 8.9 1,735 6,525 345 1,672 24% 63 Kor 14: PendavinjtoRembeci junct PM 6.1 22.8 960 2,350 324 1,695 23% 64 Fie2: Kallmii Vogelto Verrija PM 11.0 22.2 1,062 1,802 372 1,717 15% 65 Lac6 :GurezitoGorrejiroad PM 3.4 16.1 485 2,650 241 1,733 18%
66 Kru 11 NikljtoMukja PWG 10.0 81.3 544 2,741 322 1,814 20% 67 Tir 10: Kamzato Karasta PM 4.0 23.3 880 3,439 283 1,838 15% 68 Tir6 :VaqaritoArbanaMshaj PM 8.9 16.9 1,230 4,550 367 1,855 13% 69 Lez 10: Rrabnshtato KallmetiVogel PWG 11.6 15.2 1,380 4,902 386 1,870 13% 70 Lus9 : KarbunaretoZgjane PM 5.8 16.3 1,315 2,284 225 1,886 14% -38- Annex 3.1 Page 3 of 3
Works Agric Popul- Traffic Cumul. Length cost area ation vpd Cost Road: No. and name Type (km) (m Lek) (ha) served 2000 (m Lek) E.R.R.
71 Tirl6:Kashari PM 4.0 9.7 1,163 4,052 391 1,896 15% 72 Fie 15: Bocova from junct road 16 G3 7.0 6.5 600 0 45 1,902 24% 73 Lac 9: Sanxhakito Fushe Kuqja G3 9.0 7.2 1,130 2,840 122 1,909 29% 74 Lac 1: Fushe Kuqja to Fonat Laci G3 6.6 7.3 570 1,100 82 1,917 40% 75 Lac8: N. Mamurasito ShIlinza G3 7.4 6.3 1,130 100 81 1,923 17%
76 Dur 10: Qeret FlakaJP. Roman.Nrinasi G3 8.2 8.2 1,020 2,877 92 1,931 48% 77 Lus 1 Savra to Tri Urat G5 14.8 31.0 2,780 50 148 1,962 38% 78 Fie17:FerrasitoKafaraj G3 5.9 4.1 435 625 59 1,966 31% 79 Lus 15: LushnjetoAllprenezi G3 3.5 5.5 369 850 60 1,972 11% 80 Kor 21 Zvezda to LiqenasVZaroshka G5 11.6 21.8 789 2,874 239 1,994 11%
81 Kav 11 Kryeluzi to Zambishta/Oshtuni G5 8.4 23.0 934 3,454 172 2,017 11% 82 Tir 11 :Karasta to Zall Herri (Rd 65) G5 2.7 4.6 660 2,625 143 2,021 11% 83 Lus17:KemishtatoSopeza G3 2.2 4.4 320 810 113 2,026 11% 84 Pog 12: Blaca and Alarupi PM 7.4 17.5 1,381 3,134 221 2,043 11% 85 Tir 8 : Berxulli to Bregu i Lumit G5 10.4 20.7 800 2,880 163 2,064 11%
86 Add 5A: Cuka to Konispoli PM 29.4 71.0 2,280 4,230 350 2,135 30% 87 Add 3: Berat to Corovoda PM 48.0 93.7 390 1,435 607 2,229 33% 88 Add 4: Brataj to Kuci PM 28.8 80.2 1,162 6,811 105 2,309 12% 89 Add 1: Bajram to Kruma PM 47.0 90.8 4,125 9,900 193 2,400 13% 90 Add 2: Elbasanito Gramshi PM 18.8 40.5 345 1,620 368 2,440 13%
TOTAL (Average) 975 2,440 141,556 383,694 (405) (33%) Note: PM, G3 and G5 referto the mainsurface and width of the road;penetration macadam (PM), gravel (G), 3.5 meters(3) and 5.5meters (5). A few sectionsinclude subsections with both(PM and G) surfaces; In roadsincluding two types of surface,the one Indicatedis the dominanttype on whichbenefts havebeen based. Exchangerate: US$1=Lek 94.7
Source: ITECO December1994
m:%albaniaVeederAannex3-1.wk4- 01/31/95 -39- Annex 3.2 Page 1 of 3
ALBANIA RURAL ROADS PROJECT
Road Inprovement Measures
1. Improvementmeasures. The base data used to define the improvement of the project roads are: (i) road and soil conditions, (ii) condition of structures, and (iii) volume of traffic anticipatedby the year 2000, measured in vehicles per day (v.p.d.). The volume of traffic has been used to define the road width and type of surfacing. The road and soil condition, together with the traffic volumes, are the determining factors for the structural road design. The large number of roads investigated and selected required the elaboration of generalized engineering designs accurate enough for the purpose of the project.
2. Road Width. Traffic volumes were divided into three categories, each defining a specific road width:
Traffic Volume Width of Width of Total Width (v.p.d.) carriage way shoulders of road > 250 5.00 m 2 x 0.75 m 6.50 m 100-250 5.50 m - 5.50 m < 100 3.50 m 2 x 0.75 m 5.00 m
The carriageway width of 5.00 m together with the two shoulders of 0.75 m each and the carriageway width of 5.50 m (without shoulders)allow a crossing of two trucks at reduced speed. On the 3.50 m wide carriage way, crossing of trucks is only possible at reduced speed and by using the adjacent shoulders. Omission of shoulders in the 100-250v.p.d. category is only for economy, but is technically acceptable. Road width within villages will be 6.00 m without shoulders and with stone pitch lined drainage ditches on both road sides. The road widths proposed above have been discussedwith local engineers and the relevant authorities, and according to their judgement, will not be in opposition to future standards.
3. Road Surfaces. Roads with traffic volumes above 250 v.p.d. will be improved with a penetration macadam (PM) surface. All other roads shall be given gravel surfaces. The techniqueof PM surfacing is well knownin Albaniaand will be used for the project. However, the use of asphalt concrete (AC) and surfacing with cold mix using emulsion should not be excluded as an alternative bid, if it can be justified.
4. Structural Design. The three following road structure designs were based on the recommendationsfrom Road Note 31 (draft 4th edition)by TRRL, and PavementRehabilitation and StrengtheningDesign, by M. Blumer, H¢nibach/Thun, Switzerland,and on observations of available materials, technical considerations,input from local engineers, and costs. -40-
Annex 3.2 Page 2 of 3
Lower Top Road Traffic Category Layer Layer Surfacing > 250 veh/day 150 mm Gravel 100 mm Gravel 65 mm PM 100 - 250 veh/day 150 mm Gravel 100 mm Gravel 100 mm Gravel, crushed
< 100 veh/day - 150 mm Gravel 150 mm Gravel
5. Road Types. Based on the selected road widths and surfaces, the project will include four different road types: (i) PM (penetration macadam, 6.50m wide, 5.00m. carriageway; 2 shoulders of 0.75 m.), (ii) G5 (gravel surface 5.50 m. wide, 5.50 m. wide carriageway; no shoulders), (iii) G3 (gravel surface 5.00 m. wide, 3.50 m. carriageway;2 shoulders of 0.75 m.), and (iv) village roads, (6.00 wide, 6.00 m. carriageway 1.20 m. stone pitched drainage side ditches). These are shown in diagrams on the following page of this Annex.
m:ailinia^\cder~,mx-3.2 -41- Annex 3.2 Page 3 of 3 ROAD TYPES
, m~~~~rcx.6.50 PM (5.00 m. carriageway),nax. 0.75l l.C rn.= 0.73 Traffic (in general): _ 7 > 100 veh/day - 13-4. X 2-3 _3-4 ze
L C=-rent Carmiae7m (! gS=?l1) 3.50 i
ma.x. 5-.50 G5 (5.50 m. carriageway) Traffic (in general):_ - 30 - 100 veh/day 3--
L C-rreut Cdiczy (. se ) 2.50 wide
G3 (3.50 m. carriageway) 0.75 L 3.a. Traffic (in general): I| . < 30 veh/day , .- 5,7-7. -6 % 3-4 % 5-6 Z
LCcwrest Cezr-ialZfway (i £ceTaI) 3.5O= wide
In villages. PM 6.00 m. carriageway and 1.20 m. stone pitched raout side ditches ouu-t
L C=rect CaxxqzTIu.mW( gencral) 3.50x wide -42- Annex 3.3 Page 1 of 2 ALBANIA Rural Roads Project Equipment to be procured
Unit Price Total Cost Procurements (CIF Value) Unit Qty. (US$ 1,000) (US$ 1,000)
1 Project Coordinator Office (PIU Secretariatat GRD) 1.1 Office Equipment Computer 1 3 3 Computer + Printer 1 2 2 Software (standard as text, spreadsheet,etc.) LS 2 Software for Accounting 1 2 2 Software for Contract Management 1 8 8 Photocopier (small) 1 3 3 Fax 1 2 2 Initial Spare / Consumables LS 2 1.1 Subtotal 24 1.2 Vehicles Vehicles 2 15 30 Initial Spares (10%) 3 1.2 Subtotal 33
1 Total PIU Coordinator Office 57
2 District Road Authorities per district 2.1 Office Equipment Computer 1 3 3 Printer 1 2 2 Software (text, spreadsheet,accounting) LS 3 Initial Spares / Consumables LS 2 2.1 Subtotal 10 2.2 Vehicles Vehicle (pick-up) 1 22 22 Motorbike 1 5 5 Initial Spares 3 2.2 Subtotal 30 Total per supported district 40
2 Total District RoadsAuthority 12 40 480
3 Main Project Office for Supervision(Tirana) 3.1 Office Equipment Photocopier 1 7 7 Binding Machine 1 1 1 Telephone System 1 2 2 Fax 1 2 2 Computer 3 3 9 -43 Annex 3.3 Page2 of 2 Unit Price Total Cost Procurements (CIF Value) Unit Qty. (USs 1,000) 1US$1,000o
Printer 2 2 4 Streamer 1 1 1 Software(text/spreadsheet. etc., alsofor site office) LS 4 DraftingEquipment LS 2 InitialSpares t Consumables LS 3 3.1 Subtotal 35 3.2 Survey/ SupervisionEquipment Level/ Tripod/ MeasuringRods 1 3 3 Varioussmall equipment (measuring tapes, calculators, etc.) LS 2 3.2 Subtotal 5 3.3 OfficeFurniture LS 2 3.4 Vehiclesfor supervision/ technicalassistance 3 15 45
3 TotalMain Project Office 87
4 Site ProjectOffices for Supervision(3) per ProjectOffice 4.1 OfficeEquipment Photocopier(small) 1 3 3 Fax 1 2 2 Computer 1 3 3 Printer 1 2 2 DraftingEquipment LS 2 InitialSpares / Consumables LS 2 4.1 Subtotal 14 4.2 Survey/ SupervisionEquipment Level/ Tripod/ MeasuringRods 1 3 3 Varioussmall equipment(measuring tapes, calculators, etc.) LS 2 4.2 Subtotal 5 4.3 OfficeFurniture LS 1 4.4 Vehiclesfor supervision Vehicle 1 15 15 Motorbike 2 5 10 Initial Spares(10%) 3 4.4 Subtotal 28 Total per ProjectOffice 48
4 TotalSite ProjectOffices 3 48 144
1-4 GRANDTOTAL 768
ProcurementServices, Handling Charges 10% 768 77 TOTAL PROCUREMENTin 1,000 US$ 845
m:%Nbans%F9ederVAUvwx.3-3
10131/1994 -44- Annex 3.4 Page 1 of 1 ALBANIA RURAL ROADS PROJECT Incremental Operational Costs
Provisions of Project: Allowances and Operation Costs Unit Qty. 1,000 Lek 1,000 Lek 1 National Roads Directorate 1.1 Project Allowances Project Manager month 36 15 540 Assistant Engineer month 36 10 360 Accountant month 36 10 360 Secretary month 36 10 360 Driver / Helper month 36 6 216 1.1 Subtotal 1,836 1.2 Operational Expenses Vehicle operation (2) month 72 25 1,800 Communication(international) month 36 20 720 Office Consumables month 36 10 360 1.2 Subtotal 2,880 1 Total 4,716
2 District RoadsAuthorities per involved / supported district 2.1 Project Allowances Director month 36 15 540 Engineer month 36 10 360 2.1 Subtotal 900 2.2 OperationalExpenses Vehicle operation (pickup) month 36 30 1,080 Motorbike (1) month 36 10 360 2.2 Subtotal 1,440 Total per supported District 2,340 2 Total District Roads Directorates district 12 2,340 28,080
TOTAL ALLOWANCES/OPERATIONALCOST 32 796 TOTAL in 1,000 US$$ 328 -45- Annex 3.5 Page 1 of 5 ALBANIA RURALROADS PROJECT
Consultantsfor ConstructionSupervision, and TechnicalAssistance and Training
Terms of Reference
A. Backgroundand Introduction
1. The Rural Roads Project will operate through an 8-monthpreparation period followed by three years of construction, and will provide for improvementof some 975 km of short road sections dispersedover 20 districts. In addition, it will assist in the developmentof the technical and managerial capabilities of GOA institutions and of the emerging private construction industry, and in the creation of a viable private consultingindustry. It will also provide inputs to improve managementand techniquesof road maintenanceto assure conservationof every road improved by means of the project.
2. Physical improvement works will be undertaken under FIDIC organization with the District Road Directorates as the "Employers". Internationalconsultants in collaboration with local engineers/consultants will act as the "Engineer", providing adaptive designs and construction supervision. Private contractors will be responsible for implementation. Up to 90 construction sites, and about 30 contracts, should be operational through the project period.
3. Successful implementationof the project requires understandingof its wide scope, i.e., of the large number of work sites, the numerous "Employers", the range of objectives, and the lack of experienceof the participants.This will be addressedby providinga Project Coordinator, using experiencedinternational consultants and commencingwith a one-year inceptionphase in order to gain experience through the proposed organizational, managerial and technical procedures, and assess the modificationsrequired following a review of initial works.
B. Objectives
4. The consultants' two main objectivesare provision of:
(i) technicalassistance to the GeneralRoads Directorate, and the 20 involvedDistrict Road Directoratesin constructionsupervision, ensuring that appropriatelevels of quality, cost, and progress are achieved; and
(ii) technicalassistance to the GRD/DRDs, the local constructioncompanies, and the local consultingcompanies to ensure each is better able to address their roles in the future. -46- Annex 3.5 Page 2 of 5
C. Scope of Work
Construction supervision
5. Improvement of 975 km of rural roads will require approximately 30 construction contracts covering a total of around 90 road sections spread through 20 districts over a three year project period. Supervision of these contracts on behalf of GRD/DRDs will be performed by an international consultant with expatriate staff working in association with local engineers and site supervisors. Their work will include, but not necessarily be limited to, the following activities:
(i) define contract packages at the beginning to ensure that a range of size and complexity of contracts is provided, that the packages include realistic groupings to minimize construction and supervision, particularly during the first year, and to ensure that these packages are approved by GRD/DRDs. Contract packages for subsequent years will be re-evaluated, where required, by means of traffic surveys to confirm economic viability;
(ii) review pre-qualification documentation, agree on criteria with GRD/DRDs, and set up the procedures for advertising and evaluation of pre-qualification;
(iii) evaluate pre-qualification documentationprovided by contractors, and recommend a list of qualified contractors to GRD/DRDs for the different types of contract;
(iv) determine traffic measurements and review designs of the roads to be improved;
(v) prepare tender documents for each contract, assist DRDs with any problems during the bidding period and in the evaluation of tenders, and recommend to DRDs which contractors should win each contract, following participation in contract negotiations as required;
(vi) prepare construction drawings with the contractor and provide the contractor with all data for the execution of the works, including confirmations of all changes specified to the tender designs during adaptation on site; review and approval of any working drawings prepared by the contractor to adapt and finalize the general designs for specific sites;
(vii) issue revised plans and specifications as necessary, prepare variation orders and assist DRDs in negotiating with the contractors;
(viii) review and approve the contractors' work schedules, and ensure that the works are inspected and are in accordance with updated schedules and that progress is being made as required to complete the works. Regular progress reports back to DRD and GRD should be made;
(ix) inspect all works to ensure that they conform to specifications and meet specified quality standards and give immediate notice in writing to the contractor and DRD of any defects, deficiencies or non-compliance; -47- Annex 3.5 Page 3 of 5
(x) maintain a clear and permanent record of the quantities of work executed together with clear permanent records of all quality control testing carried out during the course of the works;
(xi) assist the contractors in measurement and in preparation of monthly bills, which should conform to DRD requirements, with details of quantity of work performed during the current month, total work executed to date, evaluation and justification for any extra work and stating the amount due to the contractor in total and for the current month;
(xii) report (monthly) progress of the works, by site and by contract, to GRD and PIU with compilation reports of progress in all districts to GRD, including analysis of problems in any area, with proposals for their resolution; and
(xiii) prepare completion reports for all contracts including any special as-built details.
Technical Assistance and Training
6. The consultant will provide support to each of the participants in the Project, i.e., the General Roads Directorate, each of the twenty District Road Directorates, all local contractors employed by the DRDs within the project, and the local engineers/consultants, in order to promote the successful implementation of the various project objectives.
7. Assistance to the General Roads Directorate in project management will be continuous through the whole project implementation period. Working with the Project Coordinator, the consultant will focus on specific aspects such as:
(i) provision of job assistance in management of project planning and budgeting, cost, quality and progress control during the course of working with the Project Coordinator and his staff, and assurance by the consultant that training in the practical use of computer facilities is provided in such a way that basic competence in production of reports is facilitated, using word processing, spreadsheets and project management programs or data bases;
(ii) courses in management of contracts (FIDIC) given by a specialist experienced in contracting; and
(iii) arrangement of study tours to Western Europe with 3 tours of 6 persons for a period of approximately 10 days with emphasis on exchange of experience in the fields of contract management, road system administration, and road rehabilitation and maintenance techniques and systems.
8. Assistance to District Road Directorates will largely be through a continuous on-the-job basis. The consultant acting as "Engineer" will have continuous contact with the DRD as his "Employer" and will provide assistance as necessary to permit effective management of contracts (FIDIC), with emphasis on the DRD's duties as the "Employer" on the following basis: -48- Annex 3.5 Page 4 of 5
(i) the consultant will assist the District Road Directorates in management of contracts, accounting and assumption of the role of the Employer (cost, quality and progress control), especially at crucial phases of the project (i.e., tender evaluation, commencement of works, and taking-over of works);
(ii) the DRDs' extensive knowledge of local conditions will be utilized and the consultant will seek full agreement on all details of improvement works. The consultant will provide specialists to resolve any serious problems which may arise, e.g., aspects of pavement technology or erosion protection but will seek to ensure that such specialists are used to disseminate technical solutions as widely as possible with seminars and site meetings involving more than a single district staff; and
(iii) during the second and third years of the project, the consultant will assist the DRDs in improving and implementing the proposed maintenance concept with the introduction of elements of a maintenance management system. Specific training will be provided in the use of computers to improve accounting and general office practices.
9. Assistance to local contractors will be provided on request on such matters as site organization, management of labor, maintenance and use of equipment, and contract measurement and billing. Specific involvement will include pre-bid seminars for local contractors with emphasis on pertinent sections of the general conditions of contract (FIDIC Part I) and on particular applications for the Project (FIDIC Part II), the base for reasonable assessment of construction rates for bidding and the best mix of labor-intensive methods with the necessary but limited equipment.
10. Technical assistance to contractors will include assistance in the definition of equipment needs and in work preparation, and on-site support in site management and equipment management. The extent of assistance depends on the contractors selected for execution of works and has to be shaped according to their specific demands.
11. The international consultants' work will depend very much upon their success in developing the capacities of the local engineers employed so that they learn to assume their new role as consultants. The project's objective is to use the consulting services required under the Project to create three independent private engineering consultant companies. This will be achieved through a process whereby individuals or groups of individuals will be hired by the international consultant with the expressed aim of their moving from individual contracts of employment at the commencement of the project to fee based payment through sub-contracts for works by the end of the first year. The groups will provide full services but remain responsible to the international consultant. In order to achieve this, the consultant will provide technical assistance to the designated local staff and on-the-job training in supervision of construction works (measurement and billing, control of cost, quality and progress) and contract management.
12. In addition to the continuous on-the-job training provided by the resident team, the international consultant will provide supplementary assistance specific to the build-up and management of a consulting office with training in administration, accounting, cost calculation -49- Annex 3.5 Page 5 of 5 and control, qualityassurance, businessdevelopment etc.. The extent of assistance will depend on the needs expressed by the local engineers/consultants.
13. This transition from employee to associatedlocal consultantis intended to take place as early as possible but efforts in this direction are assumed to be concentratedin the second and third years, when the priority work with DRDs and contractors starts to become better understood.The internationalconsultant will be responsible to assist in determining the most appropriate legal basis for the local consultants, in assisting with appropriate organizational structures and job classifications, staffing requirementsand salary scales.
14. Provision of procurementservices for all items required by GRD and the consultar.twill be done through internationalprocurement. The items involved are assumed to be as specified in this report but will be clarified in the inceptionreport, see below.
15. Monitoring of project activities is the responsibilityof the Project Coordinator with the provisionthat the consultantwill be assistingthis reporting in all areas. However, the following reporting will be required directly from the consultant:
(i) Inception report within six weeks of commencementof work. The report will outline its findings of any significant alterations since the Project Study, in particular those which could require amendments to the initial approach, e.g., changes in GOA organizationsand their responsibilityfor particular roads. It will includeany proposal for amendmentsto the project timetableand provide schedules for any specialist staff due in the next half yearly work period;
(ii) Semi-annual Report to be provided simultaneously with the Project Coordinator report, assumed to be at the mid- and end-points of the annual cycle with the report to be produced within two weeks of the end of the period; and
(iii) Final Report to be provided in draft form within six weeks of completion of the constructionworks and within three weeksafter receipt of commentsupon the draft report from the Bank.
MMUALNIA\FEEDERANNEX3.5 -50- Annex 3.6 ALBANIA Page 1 of 1 RURAL ROADSPROJECT Technical Assistance and Training'
Procu. Method Unit Qty. 1,000 L ek 1,000 Lek 1 National Roads Directorate 1.1 Training/Courses Local Cost S.L. Computer Courses (6wk)Tirana 3 10 30 Courses in Contract Management including direct cost for course materials 70 1.1 Subtotal 100 1.1 Subtotal in US$ 1,000 1 Unit Qty. 1,000 US$ 1.000 US$ 1.2 Study Tours to Western Europe (3) S.L. per tour tour preparationlescort 15 per diem days 60 0.15 9 travel trips 6 1.5 9 insurance and documentation 4 Total per tour 37 1.2 Subtotal 3 37 111 1 Total National Roads Directorate 112 Unit Qty. 1,000 Lek 1,000 Lek 2 District Roads Authorities per involved/supported district 2.3 Training/Courses Local Cost S.L. Computer Courses (6wk) Tirana 2 10 20 Courses in Management of Contracts, including direct costs for participants and course materials day 20 3 60 Total per supported District 80 2 Total District Roads Directorates district 12 80 960 2 Total District Roads Directorates in 1,000 US$ 10 Unit Qty. US$ 1,000 US$ 1,000 3 Technical Assistance by Foreign Consultant 3.1 Technical Assistance by Resident Expatriates S.L. Assistance to National and District Roads Directorates Contractors in Management of Contracts and Quality Control provided by Team Leader m/m 13 10 130 3.1 Subtotal 130 3.2 Technical Assistance by Short Term Specialists S.L. Assistance/Training in Computer Accounting mi/M 3 10 30 Courses in Contract Management (FIDIC) mi/M 1 10 10 Pre-bid Seminar for Contractors mi/M 1 10 10 Assistance to District Road Authorities in management of contracts/maintenance m/m 3 10 30 Assistance to Contractors in Site (Labor) and Equipment Management m/m 3 10 30 Support for Build-up and Training of Local Consultants mi/M 5 10 50 Unallocated man/months for unforeseable assistance / support to road directorates, consultants and contractors m/m 7 10 70 Direct Cost for Course Material 10 3.2 Subtotal 240 3 Total 370 1-3 GRAND TOTAL IN US$ 1,000 493 1/ The above estimates do not include contingencies. S.L. = Selected Ust
M:AALBANIAWFEEDERIANNEX-3.6- 11/1611994 Annex 3.7 Page 1 of 3
ALBANIA RURAL ROADS PROJECT
Project Coordinator
Terms of Reference
A. BACKGROUND AND INTRODUCTION
1. The Rural Roads Project will operate through an eight-month preparation period and three-year period of construction, and will provide for improvement of some 975 km of short sections of roads dispersed over 20 districts. In addition, it will assist in the development of the technical and managerial capabilities of GOA institutions, the emerging private construction industry, and the creation of viable private sector consulting engineers. It will also provide inputs to improve management and techniques of road maintenance to assure satisfactory conservation of roads improved under the project.
2. Physical improvement works will be undertaken under FIDIC organization with the District Road Directorates as the 'Employers", international consultants in collaboration with local engineers/consultantsacting as the "Engineer", providing adaptive designs and construction supervision, and private contractors responsible for detailed implementation. Through the project period, up to 90 construction sites and about 30 contracts should be operational.
3. Successful implementation of the project requires understanding of its wide scope, including the large number of work sites, the numerous "Employers", the range of objectives, and the lack of experience of the participants. This will be addressed by providing a Project Coordinator, using an experienced international consultant and commencing with a one-year inception phase with reduced targets to gain experience with the proposed organizational, managerial and technical procedures, and providing for modifications following a review of initial works.
B. OBJECTIVES
4. The Project Coordinator will provide a single channel of command for the project to ensure that an up-to-date focus of knowledge is available to provide appropriate planning, financial monitoring and progress reporting to Government departments, to the World Bank and to other (Italy) project donors. The Project Coordinator will expand the capacity of the General Roads Directorate to manage the project, whilst remaining within their established structure. He will ensure that the funds provided are utilized so as to maintain the proper balance between project beneficiaries and maximize overall benefits.
C. SCOPE OF WORK
5. The Project Coordinator will be responsible to the Director General of the General Roads Directorate (GRD) through the PIU Secretariat in the GRD Foreign Aid Department. He will be supported by professional/supporting staff and the specialists of other departments within GRD and will work closely with, and receive support from, the international consultants. He will be required to work through the eight-month preparation period, and the three years of construction works. The main tasks for the Project coordinator are described below. -52- Annex 3.7 Page 2 of 3 Project coordination
6. The Project Coordinator, through the PIU, will be responsible for liaison between GRD and other Government ministries, departments and district authorities, with the World Bank and Italy, with the international consultants, and with the DRDs for all activities of the Rural Roads Project. He will ensure that official and practical liaison is maintained with others responsible for Governmentprograms, in particular the managementof the Rural Poverty Alleviation Project (or its successor), and the Irrigation RehabilitationProject. His activities will be undertaken in such manner as to provide appropriate information to all parties and to promote resolution of any problems arising during implementation.
Planning and budgeting of works
7. The Project Coordinator will be responsible for the development of annual work plans as required by the World Bank. He will provide detailed plans for implementation and ensure that the consultants, the appropriate DRDs and any other project-related bodies are fully involved and provide all required base information. He will coordinate preparation of the project budget and ensure that any administrative procedures for both budget preparation and expenditures are in compliance with prevailing Government and Bank regulations.
Resource allocation and release of funds to DRDs
8. The project budget will be contained in the investment budget for roads of the Ministry of Constructionbut will be clearly separable since the World Bank credit and Italy loan will flow through a special account operated at a commercial bank in Tirana. The Project Coordinator will be responsible to:
(i) provide documented submission of withdrawal application to the World Bank to permit this account to be replenished in time to ensure that payments to contractors are not delayed and that the progress of works is adhered to;
(ii) arrange provision of letters of credit to permit the consultant to undertake the international procurement required by the project, and to make payment to the consultants in accordance with their contract; and
(iii) release funds to the District Road Directorates on the basis of progress of works actually achieved.
Selection of international consultant services and equipment required for the project.
9. An early and urgent task of the Project Coordinator will be to advance the selection, negotiation/award of contract to the international engineering consultant team. Following this award he will provide assistance to the consultant in all matters connected with relations with Government and ensure maximum utilization of the consultant in accordance with the consultant's TOR.
10. He will assist the consultant in defining items requiring international procurement, including vehicles and equipment for use by GOA personnel and the consultant during the implementationof the project. He will arrange letters of credit following Bank approval of these -53- Annex 3.7 Page 3 of 3 items and create and maintain an assets register for all Government equipment procured under the project.
Finalization of pre-qualification and tender documents and issue of guidelines for pre- qualification and tendering to the DRDs
11. The Project Coordinator is responsible for the rapid and correct appointment of contractors. He will, with the consultant, finalize pre-qualification and tender documents, issue guidelines for local pre-qualification and tendering by the DRDs, and provide the support required such that the DRDs are able to rapidly and effectively undertake this new role.
Reporting, monitoring of progress, quality and financial performance
12. The efficient disbursement of project funds to the Government of Albania by the World Bank depends upon proper reporting to the Bank of physical progress, development of institutions, quality of works, and financial performance. It is the responsibility of the Project Coordinator to provide such reporting on time and meeting the content requirements as may be required from time to time by the Bank.
13. The Project Coordinator will be responsible to provide financial monitoring of all expenditure under the credit and to request such assistance from the consultant and the DRDs to ensure this occurs. This will include quarterly and annual progress and financial reports to the GOA, the World Bank, and Italy, in accordance with their reporting requirements.
14. He will also provide comprehensive information on rehabilitation works including the extent of work progress, labor involvement, work quality and payments made and due to contractors and the overall situation. He will include progress reports on institutional developments, including consultant and contractor support and performance of consultants, and districts staff including any improved maintenance introduced. He will provide copies of any amended design proposals, consultants construction manuals and road performance studies. The basic monitoring framework will be as provided in the Annex 3.12, Project Monitoring Matrix (Monitoring Indicators), but will be supplemented in cooperation with the consultant.
15. He will prepare and provide to the GOA, the World Bank, and Government of Italy monthly statements on all financial records including: (i) withdrawals from IDA credit, Italy loan, and GOA's participation with copies of disbursement requests and related documentation; (ii) records of transactions of the Project account including copies of bank statements and balances; and (iii) information on any outstanding claims to the Bank and upon the Project by contractors or arising from procurement.
Technical services to DRDs
16. The Project Coordinator will provide to the DRDs any details of technical standards required and results of any technical audits such as evaluation of gravels, bitumen or concrete which have not been conducted locally.
MWALBANIA\FEEDER\ANNEX-3.7 -54- Annex 3.8 Page 1 of 4
ALBANIA
RURAL ROADS PROJECT
Organization and Management Study
Terms of Reference
A. Introduction
1. There are approximately 18,000 km of roads in Albania, with 2,400 km classified as primary roads, 5,000 km as secondary roads, some 1,000 km as urban roads, and the remaining 9,500 km as tertiary or local (rural) roads. The General Roads Directorate (GRD) of the Ministry of Construction and Tourism (MOC) is responsible for the construction, rehabilitation and maintenance of some 7,400 km of the primary and secondary roads, and the municipalities administer the 1,000 km of urban roads. The remaining 9,500 km were previously managed by a variety of state farms, cooperatives and communes which have disappeared. According to the Law No. 7572 of Local Government of June 10, 1992, the latter are now the responsibility of the 36 local elected legislative bodies called the district councils, with the possibility left open for them to delegate further to a commune or baskia (town) council. Although the legal responsibility for this lowest level of the road system is clear, the system is not yet implemented. Neither the districts nor the communes have a budget adequate to meet their responsibilities at present. In addition, they have insufficient technical capacity and, in matters related to roads, it appears common for the commune or baskia to approach the GRD's District Road Directorates (DRDs) for informal technical advice. The GRD has recommended, and the Ministry of the Interior plans, to provide the district councils with more realistic budgets for road maintenance beginning in 1995, and to arrange with individual communes for local sources of taxation to finance local road maintenance.
3. Over the last decade, and particularly since 1991 most secondary and tertiary roads have deteriorated severely due to lack of maintenance, to the extent that many of these roads are inaccessible to motorized vehicles during part of the year and many of them are in poor condition even during the dry season. In addition, all roads were designed to carry a small fleet of state owned vehicles, in an era when there were severe restrictions on personal mobility. The number of registered vehicles has grown some six-fold during the last four years and is expected to continue growing rapidly. Traffic counts carried out in 1994 on 40 sections of secondary and tertiary roads ranged from 60 vpd to as high as 1,670 vpd (excluding agricultural and animal drawn traffic). Truck sizes have increased from a typical weight of five tons per single axle to ten tons per single axle on the asphalted roads (often 11.5 tons, as presently authorized in the European Community), and six tons on the rest of the network. Significant numbers of heavy articulated trucks are now in use, and these are even appearing on tertiary roads. There are no axle-load limitations at present, and this issue is being investigated with the assistance of advisors under the Transport Project. As a consequence, almost all of the paved roads need to be rehabilitated, investments are required to increase capacity on some sections of primary roads, and sections of the secondary and tertiary networks require improvement. -55- Annex Page 2 of 4
4. GRD was reorganized (Organizational Decision of December 29, 1993) in March 1994 under the Ministry of Construction, Housing, and Territory Adjustment, presently the Ministry of Construction and Tourism (MOC), as a continuation of the former National Roads Department (NRD) of the Ministry of Transport and Communications (MTC). GRD is presently responsible for secondary roads and even some tertiary roads. Government has also applied for IDA assistance to finance a Rural Roads Project, and has agreed to be responsible for all roads which would be improved under the project. GRD is supported by consultants under the ongoing Transport Project in developing appropriate management and monitoring systems for its road network, including the determination of a work program, staffing requirements, job classification, and training requirements. Advisors are also assisting GRD to review the road network which it will retain under its own responsibility. This review is expected to be completed before the start of the present study.
5. The Organization and Management (O&M) study would be financed under the proposed Rural Roads Project. The purpose of the study is to identify and inventory the non-GRD road network (around 9,500 km) and to analyze, recommend and prepare to implement the most appropriate system for assuring its administration, financing and maintenance.
B. Objectives
6. The objectives of the study are to:
(a) identify and inventory the network of roads which are not managed by GRD, not including urban streets or roads which are under the direct responsibility of forestry or industrial enterprises;
(b) assess the functions, legal responsibilities and capability of the main organizations potentially involved in administering, financing and maintaining the non-GRD road networkl;
(c) recommend a system for administering, financing and maintaining the non-GRD roads; and
(d) recommend a practical plan for maintaining and improving the non-GRD roads, estimate budgetary requirements, specify organizational responsibilities, and propose a practical plan of implementation including transition and training arrangements.
C. Scope of ConsultantServices
7. The consultant will build upon the work under the Transport Project defining the responsibilities of GRD, as well as on recent reforms of local Government. The study will determine whether the best solution is to decentralize responsibilities to the communes or an association of communes (decentralized solution), or centralize responsibility under GRD, e.g., through a sub-directorate for rural roads (centralized solution),. Other possibilities include a mixture of GRD and main commune responsibilities, or to have GRD only intervene in the most difficult tasks and provide technical assistance to the communes. The consultant will liaise closely with each of the organizations likely to play a role in administering non-GRD roads -56- Annex 3.8 Page 3 of 4 includingthe Districts, representativecommunes, the DRDs, GRD, MLG and local contractors.
8. The consultantwill carry out, inter alia, the followingtasks:
(a) identify the non-GRDroad network (expectedto be around 9,500 km);
(b) reviewthe existingsituation for managingnon-GRD roads and determinethe most appropriatebasis for dividingresponsibilities between the various organizations involved;
(c) assess the capacity of GRD to administer additional roads with particular emphasis upon the extent and role the field networkof 28 DRDs could play in maintainingthese roads;
(d) review and assess the legal responsibility,interest, and financial and technical capacityof the Districtsand representativeCommunes for maintainingnon-GRD roads,
(e) review the responsibilityand present role of central Governmentfor fundingthe maintenanceof non-GRDroads;
(f) assess the availabilityof local contractingcapacity for road maintenance;
(g) assess and recommendthe mostcost effectivemeans of maintainingthe non-GRD network;
(h) develop structures, job classifications,staffing requirements and the levels of authority for the DRDs and/or other responsibleorganizations;
(i) determinethe trainingrequirements and interim institutionalsupport required to carry out revised responsibilities;
Gj) undertakean inventoryof non-GRDroads, making maximumuse of information currently available with the DRDs, and supplementingit to ensure that a basic knowledgeof the length, structuresand general conditionare recorded together with outlineof the functionof the road with estimatesof populationserved and numbers of villagesconnected in such a form that future developmentof the inventory will be possibleusing local consultants;
(k) define work methods,prepare an indicativework program which gives priority to the conservationof existingroads and determinebudgetary requirementsand sources for each responsibleorganization;
(1) review the existing legal instruments which would be used to transfer responsibilityto a new organization;
(m) prepare a practicalimplementation for review and decisionby Government;and -57- Annex 3.8 Page 4 of 4
(n) determine the legal and physical situation regarding right-of-way and the means by which this may best be preserved or increased as may be required.
D. Staffing and Time Schedule
9. The study would be carried out in two phases, in order to expedite key Government decisions which would be implemented under the proposed Rural Roads Project. Phase I would identify the non-NRD roads and make preliminary administrative recommendations for consideration by Government. Phase II would include the preparation of detailed recommendations following the receipt of comments on the Phase I report, plus the detailed inventory of the network.
10. It is envisaged that the above assignment would require the following skills, which would need to be combined into a small number of staff assisted by local staff to carry out the road inventory:
(a) experience in the management of public works agencies preferably including experience in Eastern Europe or other countries in transition from socialist to free market economies;
(b) experience in local Government administration and reform: and
(c) experience in road maintenance programming and costing, small scale works, the introduction of contract based systems, and working under conditions of severe budgetary constraint.
E. Reporting
9. The consultant will prepare and submit the following reports in English:
(a) Phase I Report (10 copies) within four months of commencement of works.
(b) Draft Final Report (10 copies) within four months of receiving comments on the Phase I Report;
(c) Final Report (25 copies) within three weeks of receipt of comments on the Draft Final Report.
M:AL ANIAFEEDERANNEX-3.3 Dsednbcr 15, 1994 ALBANIA RURAL ROADS PROJECT
GRD and Project Organization
Ministryof Construction
LGeneralRoadsDirectorate | ~~Director l
Maintenance Planning Technical GeneralServices Freign DepartmentManager Department Department Department AidDepartment Manaser Manager Manacaer Manager r ------
RegionalRoads Specialists Specialists S pecialists Specialists - Project Directorates(5) -road -roaddata -tenderingand - finances/ Managersfor: (for nationalroads) maintenance bank contracting accounting o otherpriects! -bridge -trafficsafety -supervisionand - laws maintenance andstandards qualitycontrol -planning/ -projecteconomy econom and unit prices .4 rl -equipment
16lf9.*4 -59-
ALBANIA Annex3.l RURAL ROADSPROJECT Page 2 of 2 GRD and ProjectOrganization
Ministryof Construction]
General RoadsDirectorate Contrct for TA andSupeision
TA
...... -. ,~*..
.~~~~~~ S
,~~~~~~~~~ . Coope"an T
Work Contracts
I Suporvision...... n 5i ......
| | i 11| i1 11 i11 > ~~~~~~TA
Notes: - Prequalificationand Tendering made by DRDswith guide-lines preparedby ProjectCoordinator, supported by Engineer - Evaluationof Prequalificationand Tendering made by DRDswith guide-lines preparedby ProjectCoordinator, supported by Engineer Project Organizationduring Implementation - Contractual Relations - - - Lines of Command ...... - Technical Assistance (TA) m asV.dupg3-.4 -60- Annex 3.10 Page 1 of 1
ALBANIA RURAL ROADS PROJECT Road Improvement Program Year 1 Defined Roads (6 Contracts)
Road: No. and name Type Length Works cost (km) (in Million Lek) Fiefi Fie 18: Levani to Vjosa/Kashishti PM/G 13.3 27.2 Fie 16: Pishi, Qarri and Bocova PM 12.4 34.9 Fie 20: Levani to Shtyllasi PM 3.8 13.7 Sub-total 29.5 75.8 Fieri Fie 1: Agimi to Hasfurcasi PM 7.7 31.5 Fie 26: Mbrostari to Agami- PM 12.5 41.3 Sub-total 20.2 72.8 Lushnie Lus 18: Guri to Karvastaja G5 6.0 23.8 Lus 11: Bishcukasi to Germenj junct. G3 6.3 7.6 Sub-total 12.3 31.4 Lushnie Lus 10: Lushnje to Hysgjokaj/Gjuzaj PM/G 22.2 57.4 Sub-total 45.7 124.4 Laci Lac 1: Fushe Mamuras to Gorreja G5 19.5 37.4 Sub-total 20.2 72.8 Tirana Tir 10: Kamza to Karasta PM 4.0 9.2 Tir. 6: Vaqari to Arbana/Vishaj PM 8.9 23.6 Tir 16: Kashari PM 4.0 10.0 Sub-total 24.6 62.8 TOTAL 152.5 440.0
2/2/95 m:\albania\feeder\ANNEX-3.10 ALBANIA RURAL ROADS PROJECT
PROJECTIMPLEMENTATION SCHEDULE Rowlew by IDIA and GOA of: Po.Frbn I T.d prmedse FPo nn GRD,'DRD. EVo .Ccnshkn Fo7
Phs I of Implermntabon
rsoF sroZo I tI. Yo-tdoi db 2naLYoo MCondtdlo. 3nt Y..,dCo .. dbni
er~~= -- E -______E__. d U.kw ------MoMan"AdwW
PF~~~~~~~~~~~~~~~~~~~~~~ 5N t t WKg r Ewhak.Fawd~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ -62- Annex 3.11 Page 2 of 2
ALBANIA RURAL ROADS PROJECT Project Implementation Schedule Procurement Plan
Est. Cost (1) Proc. Issue of Submission Award of Contract Component IUS$Th. Method Document of Bids/Proi. Contrac Comriletion
A. RoadWorks 1.) 1996 Works (7 packages, Annex 3.10) 5,000 LCB Oct-95 Nov-95 Dec-95 Dec-96 2.) 1997 Works (about 20 packages) (2) 12,000 LCB Oct-96 Nov-96 Dec-96 Dec-97 3.) 1998 Works (about 15 packages) (2) 12,510 LCB Oct-97 Nov-97 Dec-97 Dec-98 Subtotal 29,510
B. Office and Transport Equipment 1.) Computer Equipment (1st package) 88 ICB Aug-95 Sep-95 Oct-95 Dec-95 2.) Computer Equipment (2nd package) 90 ICB Aug-96 Sep-96 Oct-96 Dec-96 3.) Transport Equipment 11stpackage) 275 ICB Aug-95 Sep-95 Oct-95 Dec-95 4.) Transport Equipment (2nd package) 361 ICB Aug-96 Sep-96 Oct-96 Dec-96 5.) Misc. Office Eq. for 97 (several packages) 54 LS/DC Aug-95 Sep-95 Oct-95 Dec-95 6.) Misc. Office Eq. for 96 (several packages) 44 LS/DC Aug-96 Sep-96 Oct-96 Dec-96 7.) Survey/Supervision Equipment 24 LS/DC Aug-95 Sep-95 Oct-95 Dec-95 8.) Procurement Services/ Handling Charges 94 Subtotal 1,030
C. Operational Costs 1.) Project Allowances 154 2.) Operational Expenses 246 -/LS/DC Subtotal 400
D. Supervisionof Works (A) above Supervision by Internat. Consultant Team 1,210 SL Apr-95 May-95 Jun-95 Dec-98
E. Technical Assistanceand Training 1.) Technical Assistance 360 SL 2.) Project Coordinator 490 SL Mar-95 Apr-95 Apr-95 Dec-98 3.) Training (i) Study Tours to Western Europe 135 SL (ii) In house training 105 SL E. 3.) Subtotal 240 E. Subtotal 1,090
F. Organization and Manaaement Study Preparation by Intern. Consultants 360 SL Jul-95 Aug-95 Aug-95 Apr-96
Grand Total 33,600
47 All costs including contingencies. (2) Packages for 1997 and 1998 Works are to be defined after the one-year pilot phase.
3/23/95 m:\albania\feeder\anex3-1 1.pg2 ALBANIA RURAL ROADS PROJECT
PROJECT MONITORING MATRIX
Note: this matrix provides preliminary advice and is to be revised at the time of the Inception Report and again in response to any changes proposed during the Review and Evaluation required from the World Bank at the completion of Phase 1.
COMPONENT ACTIVITY PERFORMANCEINDICATOR MONITORABLETARGET
Initial InstitutionalSetup Project coordinationteam created State of team functioning - appointmentof all staff - physical facilitiesin place, e.g., vehicle, and office space Internationalconsultant appointed State of recruitment - contract signed - resident team in place Procurementof Project equipment Stateof availabilityof equipmnent - % age GRDequipment in place - % age DRDequipment in place - % age Consultantequipment in place Project fundingoperational - funds arriving from WB - proportionof total received - funds being disbursedfor DRD's - proportionof receiptsdisbursed for - paymentsbeing made to consultants the differentoperators (DRDs, - letters of credit being opened Consultants,suppliers) Physical Road ImprovementWorks Defunecontract packages Extent of roads deftned - % age year I defined - confirmationof priority for years 2 and 3 followingtraffic survey - % age year 2 and 3 confirmed Pre-qualificationof contractors Stage of completion: - year I % age completed - principleand documentation - year 2 % age completed - applicationsanalysis by types - year 3 % age completed - selection - pre-bid seminars held Contract tendering operational - documentsavailable - % age of total ready - tenders returnedand accepted - % age of total issued - contractsawarded - % age of total awarded COMPONENT ACTIVITY PERFORMANCEINDICATOR MONITORABLETARGET
Actual road improvement work Length completed - length completed as % age of 975 Contract payments made km - % age of total estimated cost spent - length and cost by district and by timetable as % age assumed in Project Study/Inception Report Institutional Support to Contractors Contractors undertaking works in - contractual problems arising - number of problems arising from use accord with FIDIC - measurement/billing problems arising of FIDIC - number of measurement/billing problems arising Courses in measurement and billing Courses provided to all contractors - % age completed Contractors site management improved Consultants input required for - total time spent by consultants in this introduction of improved practices area including labor and equipment management Institutional Support to Consultants Build up of local consultants Responsibility accepted by local - % age staff recruited by consultant consultants within Project - % age local engineers working as separate consultant groups - % age legally separated Institutional Support and Training to Courses in contract management Courses held with all Project Districts - % age completed GRD and DRDs and GRD Assistance in project management Levels of competence reached and - extent of further support required as reduced need for continued consultant % age of time inputs estimated training inputs Training in office practices Courses held with all Project Districts - % age completed Introduction of maintenance Stage reached in each District - extent of completion of target set in management systems Inception Report: specify by District Study tours Study tours executed - % age completion of planned Benefit to participants program - number of persons completed study tour - extent of benefit reported by participants Establish Administrative and - Definition of Communes in Length completed - Construction completed Financing Arrangements for managing charge - Maintenance under implementation non-ORD roads. - Budget Allocations - Payments made
m:Aaibania\feeder\annex3.12 -65- Annex 3.13 Page 1 of 1
ALBANIA RURAL ROADS PROJECT
Schedule of Disbursements* (US$ million)
IDA FY Estimated Disbursement Schedule (CumulMive %) Quarter Cumulative FY 1996 September 30, 1995 December 31, 1995 9 1.4 1.4 March 31, 1996 11 0.3 1.7 June 30, 1996 13 0.3 2.0
FY 1997 September 30, 1996 16 0.4 2.4 December 31, 1996 19 0.5 2.9 March 31, 1997 23 0.6 3.5 June 30, 1997 28 0.7 4.2
FY 1998 September 30, 1997 35 1.0 5.2 December 31, 1997 42 1.2 6.4 March 31, 1998 53 1.5 7.9 June 30, 1998 64 1.7 9.6
FY 1999 September 30, 1998 74 1.5 11.1 December 31, 1998 84 1.5 12.6 March 31, 1999 93 1.4 14.0 June 30, 1999 100 1.0 15.0
Credit effectivenessestimated in 2nd. quarter 1995 (para. 3.31).
\,I:bsa:i%Vo1\ca\x-3.13 -66- Annex 3.14 Page 1 of 2 ALBANIA RURALROADS PROJECT
EnvironmentalAssessment
Direct and Indirectimpacts of the Project and MitigationMeasures to be taken
1. Improvementof rural roads can have importanteffects upon the physicalenvironment. Direct impacts maybe anticipatedonly in the immediateenvirons of the improvedroads, whilst indirect impacts will gradually arise, and over a wider area, as a consequenceof improved access.
2. In the proposedproject, direct environmentalimpacts are anticipatedto be very limited because:
3 no new roads will be constructed * only existingalignments will be used 3 improvedaccess is focusedupon areas with high agriculturalproduction and will not provide access to areas with sensitive ecosystemsor to forest areas where unregulatedexploitation could arise
3. However, there are three areas in which indirect adverse impacts could arise:
e use of mineral reserves in previouslyunexploited river beds for road gravel e additionaldust problems along roads, particularlyin villages 3 erosion from gravel roads
Satisfactorysolutions to all thesepotentially adverse impact factors have been formulated in the project.
4. River bed gravels. The use of river gravel is likely to permit substantial savings in transportcost comparedwith past stoneproduction systems which were centralizedand involved very long haulage distances. Recently, numeroussmall private crushing plants have arisen, generallyin river beds, to exploit more easily accessibleresources. This trend is likely to continueand be encouragedby the sales to the project. The benefits of reduction in vehicle pollution will accordinglybe counteredby possible damage in river beds. In the proposed project, all contracts would designatethe non-sensitivebed areas for gravel sources, with the projectmanagement retaining the power to prohibitthe unlikelyuse of any potentiallysensitive river bed area.
5. Dust. Dust is a severe problemon gravel and earth roads in Albania. It is particularly grave during the dry summer period. The project has addressed this problem by including penetration macadam (PM) road sections through most villages, complemented with the constructionof roadside drainage to improve the awful conditions caused by water in most -67-
Annex 3.14 Page 2 of 2 villages during the winter. The additional expenditureincluded in the project for such road paving and drainage in villages will substantiallyimprove living conditionsfor around 100,000 people living in villages and settlements in the area of the project. This improvement will particularly be helpful to women and children who spend most of their time in the villages and necessarily move along the roads for unfortunate tasks such as transporting household water supplies and firewood.
6. Erosion. Erosion from gravel roads can choke watercoursesadjacent to the road. This condition is most likely to arise on steep roads in areas of high rainfall, following a lack of maintenance, or because of poor grain size distribution in the gravel, or because of poor compaction. The project has a limited length of steep section in high rainfall areas and answers these problems through a mandatoryselection of gravel in every contract to prevent poor grain distribution, and specific compaction requirements. It also includes assistance in improving technical specifications and practices for maintenance,and it ensures adequate maintenance budgets for all project roads.
7. The increase of economicactivity and agriculturalproduction, and the easier connection among the villages could increase the use of chemicals in agriculture and facilitate outwards immigration. However, adverse effects from increases in the use of chemicals should be kept withinreason because the improvedroads will also facilitateexisting agriculture advice services. Outward migration would diminish because the improved access to health, education, and businessopportunities facilitatedby better roads would provide a strong stimulus to staying in the villages.
8. All contracts require proper disposalof waste materialsgenerated during constructionas well as proper sanitary waste disposal for labor intensive crews.
M :\abnia\fciet\umc-3 .14 ALBANIA RURAL ROADS PROJECT Factors Considered for Selecting Project Districts
District Agricultural Potential Social Support Population Complementary InvestinentsUb % or land Persons % of with less Receiving Proposed IDA Proposed Agricultural Production than 5% Economic Number Density % of No. of Irrigation IFAD or Value Added (lek/capita) gradient Assistance Unemployed 1990 (pop/km2) Albania Commune Project (ha) RPAPP _ Project Coastal Area Lushnja 9.0 6,711 72 2,137 8,985 137,830 194 4 15 17,570 DurresiUKavaja 8.9 5,004 59 6,306 29,064 251,029 296 8 16 19,570 Kruja/Laci 4.1 4,925 74 4,722 12,379 109,876 181 3 8 14,835 FierilMallakastra 11.2 4,605 58 3,179 17,803 251,115 214 8 20 14,815 Tirana 5.2 4,037 29 10,589 44,363 374,483 303 12 17 6,696 Shkodra/M.Madhe 8.6 3,953 79 18,674 30,310 241,549 96 7 20 Lezha 3.2 4,646 90 2,440 3,971 63,505 133 2 9 Peqini/Elbasani 8.1 4,320 25 7,389 28,715 248,676 168 8 26 Vbora 4.7 4,219 40 3.503 9.105 180.725 112 6 If Subtotal 63.0 58,939 184,695 1,858,788 58 142 73,486 00 Korea Area Korca/Devo1i 8.7 4,872 49 3,387 8,926 218,219 104 7 19 Poeradeci 1.8 4,852 14 1.908 5.723 73333 101 7 yes Subtotal 10.5 5,295 14,649 291,552 9 26
Other Kolonja 1.0 5,795 19 310 2,978 25,291 31 1 6 Gjirokastra 2.4 5,678 54 660 4,102 67,392 59 2 11 Saranda/Delvina 4.1 5,343 45 631 6,569 89,459 82 3 9 Permeti 1.3 4,593 20 160 2,960 40,419 44 1 6 BeratiWKucova 5.0 3,633 22 4,833 19,759 180,489 176 6 12 Skrapari 1.1 3,574 4 358 5,906 47,605 61 1 8 yes Tepelena 1.0 3,297 14 1,471 2,237 51,022 63 2 8 Gramshi 1.0 2,752 11 2,110 4,684 44,791 63 1 9 yes Tropoja 0.8 2,514 15 3,320 7,365 45,965 303 1 7 yes Mirdits 0.7 2,278 20 3,350 4,385 51,701 77 2 7 yes MatilBulqiza 1.2 2,048 13 5,185 14,408 78,754 77 2 18 yes Kukesi/Hasi 1.7 1,945 20 10,819 12,388 104,731 79 3 16 yes Dibra 2.9 1,876 34 1,504 6,720 153,775 98 5 13 yes Librazhdi 1.7 1,793 20 1,732 7,013 73,871 73 2 9 yes ' I> Puka 1,187 13 4.811 3.306 50,286 49 7 Yes m 3 TOTAL ALBANIA 100.0 105,488 304,124 3,255,891 100 314 Source: 1991Statistica Yearbook; Ministryof Labor (10/93 statistics). or (I) does not include 475 km of forest roads under proposed IDA IntegratedForest ManagementProject. M:wAaib..kf.eknua4.I Date: 09-27-94 . -69-
Annex 4.2 Page 1 of 3
ALBANIA RURAL ROADS PROJECT
Details of the Economic Evaluation'
1. Traffic: Traffic surveys were undertakenin April and July 1994 on 37 of the 90 roads in the project area. The survey took place on one normal week day during either a 16 or 24 hour period, with vehicles classified into eight categories. These figures (excludinganimal traffic and motorcycles)were adjustedto an annualbasis by reducing them by 8 percent to allow for lower weekendtraffic, and by a further 20 percent to allow for the surveys being carried out during the growing season. Results are shown in the Attachment. Traffic levels were then correlated with the population, agriculturalarea and the value of agriculturalproduction of the area served by each road section in the project. The best fit was obtained by weighting agriculturalproduction 60% and population40%, with an average error of 15% in the estimated traffic level. This relationship was then used to estimate traffic levels on project roads where traffic surveys were not carried out.
2. Traffic was projected from 1994 to 2004 taking into account recent traffic trends, the current level of motorizationin Albania and trends in other countries, projected GNP growth and agriculturalpotential. Albania's road vehiclefleet doubled in size from 1992 to 1994 (Table 1.2). The most recent growth rates are also high, with car registrations increasing 26 percent and truck registrations 16 percent during the first three months of 1994. The passenger car fleet is expectedto grow at more than double the rate of GNP on average for at least the next several years (para. 1.10). The balance of the road vehicle fleet is likely to grow at a slightly slower rate.
3. Agriculturalforecasts were also preparedfor each irrigatedand non-irrigatedarea within the project region by type of terrain. The value of agricultural output is generally expected to increase by 50-100 percent in these areas, as detailed in the ITECO study. Taking all these factors into account, traffic was forecastto grow 40 percent from the end of 1993 to mid-1995, with the growth rate then slowingto six percentp.a. thereafter until 2004. This implies Albanian vehicle registrationlevels in 2004 of 135 vehiclesper 1,000 people, which is 85 percent of the level achieved in Bulgaria, or 54 percent of the level achieved in Greece, in 1991. Traffic forecasts are, therefore, considered to be conservative.
4. The surveys revealedthat traffic on some road sections was suppresseddue to their poor condition,and these roads were not includedin the abovestatistical analysis (para. 1). In order not to overestimateproject benefitson these sections,50 percent of the traffic on "bad" sections,
'The report 'Albania Feeder Roads Study' prepared by consultantsITECO dated July 1994 contains additional informationon the economic evaluation. -70-
Annex 4.2 Page 2 of 3 25 percent of the traffic on "poor" sections, and 10 percent on "fair" sections, was considered to be inducedtraffic. Correspondingproject benefitswere reduced by 50 percent in accordance with conventionalpractice.
5. Economic Costs: The engineeringcost estimates(including the cost of supervision and physical contingencies)were adjusted to take into accounteconomic distortions and to remove taxes which are transfer payments. Labor costs comprise around 45 percent of construction costs. Since unemploymentis estimatedto be around 30 percent, the cost of unskilledlabor was valued at 50 percent of the wage rate (skilled labor was valued at 100 percent of the wage rate). This adjustmentreduced the cost of constructingboth gravel and bitumen surfacedroads by 19.2 percent. Diesel fuel presentlyhas a real tax element(retail price less border price plus the cost of distribution)of about 50 percent. Since diesel fuel comprisesan estimated 37 percent of the cost of constructing gravel roads (due to relatively long material haulage distances) and 20 percent of the cost of bitumen roads, their costs were reduced by 18.5 and 10 percent respectively. The cost for both types of constructionwere also reduced by 10 percent to account for the estimated tax componentof material costs. Bitumen accounts for approximately23 percent of the cost of paved roads. The domesticprice of bitumen is about 50 percent of the world price, so that the economiccost of bitumen surfacedroads was increased by 23 percent to compensatefor this underpricing. In summary, the financialcosts of gravel surfaced roads were reduced by 52.7 percent and bitumen roads by 21.2 percent in the economic evaluation. The constructioncosts for each road section are listed in Annex 3.2.
6. Economic maintenancecosts were based on engineeringcost estimates, adjusted in the same way as construction costs (para. 5). Routine maintenancecosts for new bitumen roads were estimated to increase from 19,000 lek/km in 1995 to 65,000 lek/km in 2003; it was also assumed the road would be resealed in 2006 at a cost of 873,000 lek/km. Maintenance of existing bitumen roads was estimated to cost 89,000 lek/km. Routine maintenancecosts for improvedgravel roads are expectedto range between25,000 and 43,000 leks/km according to age and traffic level. It was estimated that these roads would need to be regravelled in 2004 at a cost ranging from 231,000 to 1,348,000 lek/kmaccording to terrain and traffic level. The cost of maintaining(but not improving) existing gravel roads was estimated to be 20,000 lek/km.
7. Vehicle OperatingCosts: Vehicleoperating costs (voc) were estimatedusing the Banks HDM-IIImodel. Model equationswere adjustedto take into accountthe poor conditionof roads in Albania. Most of the existingroads were made from large stones, as in medieval or earlier times, and overlaid with a cosmetic skin of gravel or penetration macadam which has now largely disappeareddue to lack of maintenance. Many of these roads are so rough that travel is restricted to 5-10 km per hour. Roughness,as measuredon the internationalroughness index (IRI), could be as high as 30 m/km. The HDM-III model (and other known models) are not calibrated to accommodate this high degree of roughness. The HDM m equations were, therefore, extrapolated to provide voc estimates. IRIs were estimated to average 6.5 on improvedpaved roads, 8.0 on improved gravel roads, 12.0 on all roads in "fair" condition, 16.0 for all roads in "poor" condition, and 23.0 for all roads in "bad" condition. Taking into -71-
Annex 4.2 Page 3 of 3 account the compositionof motorizedvehicles observed on the project roads, the corresponding average vehicle operating costs were estimated to be 3.7, 8.0, 12.0, 46.0, and 65 lek/km respectively.
8. Albania does not yet assemble statistics on vehicle operating costs. HDM III inputs were, therefore, estimated using typical internationalvalues, modifiedto take into account local economicconditions. Unskilled labor was valued at 252 leks/day, the same value as used in the analysis of construction costs. A nominal value of passenger travel time was included (57.3 lek/car/1000 km and 745 leklbus/1000 km) Vehicle spare parts were valued at 40 percent of their internationalprice to take into accountthe significantamount of cannibalizationwhich takes place.
9. Analysis Period: Proposed road improvementswere evaluated for a ten-year period. The residual value of the improvementsin year ten was taken as a project benefit, assuming proper maintenanceas discussed. Residualvalues were estimatedto consist of 80 percent of the value of the base and sub-base, 75 percent of the value of the gravel surface and 27 percent of the pavement, 25 percent of drainage works, 50 percent of drainage walls and concrete works, and 60 percent of village works. The costs of periodic maintenancewere prorated.
10. Design Standards: The expectedlifetime cost of a five meter penetration macadamroad (construction,maintenance and vehicle operatingcosts) was compared with that of a five meter gravel road. Gravel is not normally available near roads located in flat (irrigated) areas which comprise most of the project (haulagedistances are frequently greater than 15 km). A second factor which favors the choice of paved roads is the expected rapid growth of traffic discussed above (para. 3). A rough calculationbased on generalized costs indicates that it may be more economicto pave roads which carry as little as 100 vpd in 1994 (180 vpd expected by 2000), or about 90 percent of project roads. In order to be conservative, it was assumed that only roads carrying more than 250 vpd in 2000 would be paved, or about 60 percent of project roads (Annex 3.2). Calculations would be refined on a road by road basis, and design standards finalized, during project implementation. - 72 - Annex 4.2 Attachment ALBANIA RURAL ROADSPROJECT Traffic Survey (Survey in July 4-7, 1994except Lushnje April 21, 1994)
i~~~~~~~~~~~~~I |Eti mnaek Medium Heavy Agric. Horse otorimaze District and Road Hours T Total Cars LV Buses Trucks Trucks M Bike Tractor Cart AADT Dev I :Potoska 16 601. 200 151 261 82 30 20 __3 24 # 6931 Dev 7: Bilishti 16 3131 88 80 6 38 4 2 33 82 179 24 # 361 Dev 12:Vranishti 16 387 48 33 8 14 6 44 74 180 132 24 # 446 ___ I Dur 1 Maminasi 16 602 249 130 4 54 14 86 23 42 341 at Tirana Road 24 6871 272 1551 4 63 16 97 28 52 387 Dur1 Hamallaj 16 715 275 114 8 65 55 94 63 41 4181 atManza 24 772 296 120 8 74 60 110 63 41 447 Dur 3 KatundiiRi 16 751; 248 160 20 116 32 83 50 42 451 atKatundi 24 885i 297 196 20 141 32 93 61 45 538 Dur 3 Katundi i Ri 16 1,317 827 186 39 86 18 71 46 441 865' atTirana Road 24 1.402 857 2041 41 96 18 79 54 53 914 1Dur16 Hamallaj 16 120 933468 12 47 19 44 65 68 256 at Shackafane 24 513 132 102 12 53 22 48 701 74 282 Fie 1: Agami 16 | 150 41 171 0 11 2 23 24 32 68 24 171 47 19t 0 12 2 26 281 37 78 Fie8 Strumi 16 322 47 20 13 S0 0 9 81 102 152' 24 384 53 29 13 62 0 9, 109 109 192 Fie9 Fien 16 555 85 82. 291 61 52 80 89 77 2871 24 634 95 97 29 77 52 91 104 89 3271 Fie 13 Topoja 16 960 228 175 58 195 0 109 106 91 5471 24 1,143. 271 200 65 231 0 122 136 118 6501 |Fie16 TiranaRd 16 283 40 63 10 32 9 41 52 36 148. 24 381 50 74 19 49 13 54 74 48 201' ;Fie18 Levani 16 230 92 24 13 25 9 29 24 14 135 24 275! 100 29 141 29 9 36 36 22 156 Fie20 Levani 16 87 18 29 ol 14 6 3 11 6 56 24 115 23 32 0 14 8 4 20 14! 70' Fie27: Fieri 1s 146 28 19 141 16 18 10 24 171 86 24 168 33 21_ 16] 18 19 13 311 17 99 Kav1 Golemi 16 979 329 217 01 77 10 100 126 120; 5468 24 1,199 400 254 0' 104 10 130 161 140 669' ,Kav rVorrozenit 16 895 227 1921 81 86 4 76 128 176 4631 24 1,104 272 227 101 112 4 111 161 207 566 Kav 6: Luzi Madh 16 1,612 716 228 8 124 30 198 160 148 912 24 1.917' 790 273 11 154 30 243 214 202 1060 Kav8: Gose 16 2.0,49 810 346 9 288 55 226 154 161 1197 2 362 24 . 1 890 377 10 333 601 263 214 215 1356 Kor1:Korce 16 1 6391 135 129 49 101 0l 68 45 112 330 24 I 646 138 131 51 101 01 68 45 112 336 Kor2: Voskopi 16 651 23 13 11 14 °l 0 4 0 47 24# 75 Kor8: Polena 18 187| 53 16 10 52 1 17 19 19 109 24 # 216 Kor21 :Zvezda 16 234 45 49 10 51 33 7 18 21 148 24 # 270 _ _ _ _ _ L I KruI: TiranaRd 16 160| 35 231 0 14 16 21 281 23 84 24 # 184 Kru 8:VoraRd 16 208 77 301 0 20 5 13 30 33 117 24 217 81 32 0 20 5 14 32 33 122 Kru 9: Vora Rd 16 423 103 54 6 17 7 65 80 91 192 24 5241 131 62 9 26 7 75 100 114 241 KruI1: TiranaRd 16 374 174 78 21 42 0 27 24 27 230 248S 431 ______Lac I rirana Rd 16 108 32 6 0 4 2 6- 40 18 80 24 # 125 Lac 5Road10 16 349 62 19 2 35 5 7 164 55 2071 24 # 402 Lac6 Gurez 16 170 62 23 0 28 4 5 31 17 107 248# 196 Lac10 :RoadS 18s 349 133 30 1 16 7 8 120 34 221 248# 402 ___ ILUS2 Gun 18i 186 45 33 8 42 6 9 25 18 114 248# 214 Lus 6 Pluk 16 318 174 92 0 6 0 0 15 31 207 24 # 367 Lus7: Bubullima 18 279 127 57 11 57 0 0 0 27 181i 24 8 322 Lus8 :Roupai 16 75 36 12 4! 6 0 10 0a 7 42 248 86e Lus 10: Kharaj 16 75 Is 10| 8 27 4 3 o 7 47 24# 88 _ Average_% *ge 34% 17% 2% 11% 3% 9% 11% _ % 8 16 hour figures adusted to 24 hours by measured average night factor of 15.5 % Figures for Lushnje adjusted with 10 % horse carts Exdudes animal traftic and motor bikes. m:%aIbaniaVeederVorecast.wk4- 01/31/95 -73- Annex 5.1 Page 1 of 1
ALBANIA
RURAL ROADS PROJECT
Documentation in Project Files
1. Albania: Report of Advisory Mission on Road InfrastructureManagement in Albania, UN/DESD Project, June 1992.
2. Albania: An Agricultural Strategy for Albania, World Bank/European Community, October 1992.
3. Albania: TechnicalAssistance to MTC and GRD under the Transport Project, Danish Road Directorate, September 1993.
4. Albania Public Investment Program 1994-96, October 1993.
5. Albania Country Strategy Paper, February 28, 1994.
6. Albania Feeder (Rural) Roads Study - PreliminaryReport, ITECO, February 1994.
7. Albania Road Traffic Counts, June 30, 1994.
8. Albania Feeder (Rural)Roads Study, ITECO, Tirana, July 1994 including:
(i) Report; (ii) Annex 1: Background Documentation; (iii) Annex 2: ImprovementMeasures and Engineer's Cost Estimate; (iv) Annex 3: Prequalification and Tender Documents (without Bills of Quantity); and (v) Annex 4: Bills of Quantity.
9. Albania Feeder (Rural) Roads Study - SupplementaryReport, ITECO, Affoltern a/A, December 1994.
mJb.iaUhcdniaflm1-S. I. ALBANIA Rural Roads Project
Organization Chart of MOC and GRD
MINISTER
General Roads Inst. No. 1 and 4 Inst. No. 2 Inst. No. 3 of Geology lInt.AIrt. of Directorate DeveltUrban for Studiesand Hydropower and Construction and Buldinme lRoad, Bridgeand and Dams Geodesy Technology Planningand Raiwayl Design Csdssre Do t
l Housingl | Maintenance Planning | n Depsrtmenc Department Department ailment maintenanceof roads -road data bank DenmtI maintenanceof bridges - road inventory 2 Investmentn winter service road planning Department maintenancemanagement I , .r Dvelopmnt nd Coordinato Technical General ForeignAid Depaitmnt Department Service Deparatment Department .ea designs - personnel - Design, Procurement Department surveying - finance Surveying,Construction construction supervision - administration of foreign aid programs research - training and projects. equipment - legislation - Coordinationof external aid.1 SOURCE: MOC and ITECO July 1994 m:Wbmr\F*b"\CHART-I SAR - 1/31/96 -75- Chart 2
ALBANIA RURAL ROADS PROJECT
Organization of District Road Directorates
GENERAL ROAD ll Minister of l DIRECTODRATE IConstruction and Tourism
DISTRICTROAD District DIRECTORATE (informal advice, Authority President minor road works)
Plantniing9 | FiAnceutSetind |ehnical || Transport and |
Section Accounts Section]~~~~ Sc tion EauipmentSection
Stores, Lao =G_ng Workshop |lengthmen |equipment
Labor Gang/ eda lengthmen
etc.
Each headmanis responsiblefor 30 - 50 km of roads dependingupon road tVpe and construction.
Source: NRD and ITECO. January 1995
MAALBANIA\FEEOER CHART2.SAR 1131/96
IBRD26234
hER0120 ' 21 ALBANIA FED REP.OF YUGOSLAVIA RURALROADS PROJECT
SOUTHERNDISTRICTS , FoBRD26232
PROJECTROADS: I'< 0, D DISTRICTBOUNDARIES Soa 1 B A N_ | NATIONALROADS _ . INTERNATIONALBOUNDARIES For DefoiI Suee RA - GRAVELROADS I iBRD 26233 OF ,_~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~IJ'iv s .I-I o I I * \ / / / ITALY' I 40' I - - _, 40G ~~1 T~~~~~~ GREECE Lake SeaS LIBRA_ZHfDfs t0/ - Ohrid 2. ELBASAN / _- FYR _,, _ ..- ,, _. ) t i \ gMACEDONIA, - Prespes SGRAMSH danorn'*o.,onsandany IPodgorija i,nplyon t.f porto34F orany_- _. SvendorsZaa '-a \ ) _ / 4b ~~~~~~~~~~~~~~~~~~~~~~Reimbeci 00 WJ X\ 9 4 ~~~~~~~~~~~~~~~~~KOR(;3\ Vrqnihti Trenii ,~~~~~~~~~ ~~ ~~~ j ~~~~~~~~~~~~~~~~~~~isst or .cetneo uh , I 5,l.CLsr 1 rhe Wondooni ^ Group > . * \~~~~~~~~~~~~~~~~~~~~~r'h naher ' mbommohon> shern/ _ parima~ | ^ F;Ui1- 19 rhh. -ofon eri-j-, hry S4 I rhsfoundar,as con INJtJJ . 0 10 Mie orp .oyedonmn *-tof,W_ or occephnce, o of such \ w ~~~~~~~KOLONJE o0 g5 MOiles FEBRUAARY1 995 1s_8, 30' 19'00' 19,10' 20-00' 22 1'0 t\ - '.<.i .J i ~~~~~~~~~~~~~~~~FEDERALREPUBLICbF YUGOSLAVIA CRO,kTIAX,-.j . 42-30- ; < l {Volbo.. \ 42930' -- VLH(PIikE~~~~~~opik A,.S' RURALROADS PROJECT k -49' ADDITIONALROADS > - .ru, ! | iv20 M PENETRATIONMACADAM SURFACED K,:\''') 0 K E 5 i, Cl SELECrEDCMES VS4giiN >/ RDlE _ i 69) NATIONAL CAPITAL @ oehn O5 NATIONAL ROADS u t / : RDIBERi '''RAltROADS j \ .hkpiP -- RIVERS FushelKugo LA Ltorf, A ~ ! \ DISTRICTBOUNDARIES J$ Mnrs Brr,MA INTERNATIONALaOUNDARIES K hJl30 ?\\)FYR 8 t F - 3 IBULIZEWMACEDONIA i Kotojh i ^ ~~~itBRAZHD ,1 5sJ( t _ . ~~rob's Lj,Qb.ohd > : t I; , Z i; ; t H PE O 9h~~~~~~PEONlbaan\ a 9 ) I E B A S A~ELASN ' '-NJE/YjM,1 R/; - ' nsz_m- d, Oio < ~~~~~~~~~LIVMriS_ ' . o ^.s dC ...... d vr.~~~~~~~~~~~~~~So hrThW...... 1Fj5*\ztn ,- -3-30lrtoo , \ 4 f SBERATt.- ~~~~~~~~~~~~~~~~~~~.mh//DVtJOC , A- -. d. -6 'n.J W" ,_A.EA O-Eo 40'300 | a j-' < AFAI ;v - 40'00' ' , _ { t t t-5'- q : Dj3>D}e2vin^;t !~~~~~~~~~~-d - 1Ws \,M,S5A'\,UICA-'^ Soro~~~~~NEt5.k_ GEC f¢sCti----j f | tSARANDE)dolo20304050~KOION _ ur , e 9,^! KllL>EtERS W~~~~~~~~~~PRME _ x Ar 19@30~~~~~~~~~~~LO 2 -00 yr0' 20'0 iJ HER?&") FED. REP.OF YUGOSLAVIA \AR,.. Burrel i Mortmurasi. ', , J/ForDuJFOd, Seeu '. KDURRES - ' , ' I BRD 26232 \ A 3 nD2n 2 K FYR amcJiDOj I MACEDONIA A-riGKiEAdriatic: r j . (d AALBANIlikTRN 41'S…r 41- 4 I,- i 3d,ht F ),i AREAITALY, ~~~~~~~~~~~.oe30 -- Por1toR SI /> ~~~~~~~~~~~~~~~~~~~~~~~P rK I ~1MG26234 ~ ~ ~ ~ ~ ~ M VIm : IBR 223 Dur * ozol 17 / I.cnSea ---- Y---~----, - ols urii&aajhke( ITALY 40'' ~~~~~~~~ Aditc~~ ~~GREECEGolmoasi6 21- R~~~~~okuII461iKovoj Mce l ALAIA >;ku9H4goa5p i ALBANIA1-S a ~~EBAA RURALROADS PROJECT ,.i5 b * DURRES5AND3SO3UTHERN Fam M8iIsl- 8< 5 eoabnrePslm ( )~~~~~~~ sski Siperm Kup - t PROJECTROADS aa oe iA PENETRATIONMACADAM SURFACED J IR !Fe 649 Kjn - GRAVELSURFACED. 5.50 MtETERS/5 ,*Almrs _ SURFACED,3.50 METERS gs \ >5 ge,r GRAVEL Spll 'a 13 idi rogozkinaE PEQENE 76 ROAD REFERENCENUMRERS -r EA - NATIONALROADS ) i GRAVELROADS \\a / > Kosh, i L2 iGoovaS C:10 SELECTEDCITIES /Bsh [ J ® NATIONALCAPITAL RURAL~PROJOECTE$q*~ >* ~ ~ ~~~~~ ROD \ \ RIVERS 2ourk 40 %1 rXlyherina _o\ 9. - - DISTRICTROUNDARIES \Jj>m}v - - INTERNATIONALBOUNDARIES V l j Sa us o 5 lo1I0j rk m tI . \Tpin o 5 10 1215., \ J- 4 w > nwzv-csof # sie2 w - W J | \ ~ ~~~~~~~~~~~~~~~~~~~~Gjirokoster< ______9 DELVINE t o Z I :n RFP FF SLAVIA -AREA ;¼\ tR ( JP I3'OF FEDERAL REPUBLIC . 4i OF YUGOSLAVIA .42~~~~~~~~~~~~~~~~~~2 ______- MACEDONIA ! Adriatic 2i) 41, Alt ,oIbono . CY Seo 0 IBRD 233 :For Deai, TROPOJE VI- :IjIBRD 26234,1_ ITALY'- T:RANE AND NORTHGREECE SHKODER IIAIY, ______e,*( ;% .. '1,T C 9 S-Ilt 4' -7 / 'J F,{< Ferzei KalimetiiiVoI ,PUKE/ \- 4/ 5 \ , . R ~~~~~~~~~~~~~~~Pukii ALBANIA>>(\)- RURALROADS PROJECT TIRAVEAND NORTHERNS DISTRICTS i'~~~ i < 769 '_ \a ' NATIONALCArobPhITAL MIRDITE s PROJECTROADS:ARES _ PENETRATIONMAACADAM SURFACED Lezhe Rubike§ rse Ku?bneshi0 GRAVEL SURFACED,5.50 METERS e n . - GRAVELSURFACED, 3.50 METERS 5'i*f6 . 50 ROADREFERENCE NUMBERS Adriatic n Zee 0_lm \ - NATIONALTROADSBOSNDARIE GRAVELROADS Fush'u_~ 5ELECTEDCITIES ()DISTRirCCENTERS .t Son.hk ' RIVERS ~~~~~~~~Shelinzoura LA Burrel ( A RIVERS ~~~~DURRESMouoi' ( \ - '~DISTRICTBOUNDARIES M INTERNATIONALBOUNDARIES |\z . t r i , ie~~~ d BNTIRANEyl i I I t,~ _s ~ ~ ~ ~ \ M &i a 0 5 10 15 20 Ki6. D OI I I DurKh,TRN 0 5 10 15M,Io Vo1ri _ n X X KaSaj- Greni ,-* Ni ~~~~~~~~~ ~ ~~ELBASAN %iww"t ,yr er rr Drar AA < Grwp o y l- bm rP 11 ~~~~~~AV ruoey_ia. , sox1\./nA O ffi/lwrswhzac~~~~~~~~~~~~~~EOrhbno I a-ruN- I18'230' 1900! 1,,' 20'30 21 00 For Detaii i \ FEDERALZEPUBLIC OF YUGOSLAVIA CROATIA IBRD26232k 42130' A2'30' . > ./ fiE ~~~~~~~~~~MADHEtTROyOJE bXt : Won ~~~~~~~~~~~~~~iHohfi l Bcur mG ~ALBANIA ~ ~~~~~~ALS RURALROADS PROJECT ' d D K mo, 42-00' PROJECT DISTRICTS 2 00 ' PROJECT DISTRICTS j O SELECrED CITIES * DISTRICTCENTERS Shgn DIT1 6 NATIONALCAPITAL b h'o NATIONALROADS IE -- RAILROADS -~RIVERS F,iKg - *- DISTRICTBOUNDARIES -~ -INTERNATIONAL BOUNDARIES fLEVATIONS IN METERS. F Y R Al30 f. Y .. v E . :\BUtSULIZ'MACEDONIA 1200 R200 D urr. .. w-w-lS^r . 'tQLBRAZHD ' \s.A -. IR ForvDetil F De, IB°'30' 19,00',ER KCEt1 uH r tIBRD z u-e26233 3 i < 1 X ,, ~~~~~~~~~~~~~LAAA A KRAPAR7STyR~~~~E,lih IBR26234 ' @~~~~~~~~~~~~~~~~~~~~~~q 1..,44,_ 0_ ,,_t>¢- ...... { .,Vornrhs.10301 ,, ,, tE , w5 ._ \ ^ Lvrovet / Rsr#~~~~PELENE kk_ 1la~~' 5 .4XSANA'>_' bj -',/j U Fr S!lei tI gARANDEt~~~~~~~~~~~VLOK°c, )to 20 3 40 5 /~~~~~~FrDti MIAMA.92 \' UII ' - 'S SArANdDREC .... .190' 200 20 Er,k•0 OF0 2100'