tjitE COriY RESTRICTED Report No. PTR-74a Public Disclosure Authorized Thisreport isfor officialuse only by tho BankGroup and spedficallyauthorzed arpnizations or perons. It maynot be published,quoted or cited without BankGroup authorization. The DankGroup does not acceptresponibty for theaccurcy or completenu of thereport.
INTERNATIONAL BANK FOR RECONSTRUCTlONAND DEVELOPMENT INTERNATIONALDEVELOPMENT ASSOCIATION Public Disclosure Authorized
APPRAISAL OF
A SECOND HIGHWAY CONSTRUCTION PROJECT
ISRAEL Public Disclosure Authorized
June 21, 1971 Public Disclosure Authorized
Transportation Projects Department Currency Equivalents
Currency Unit - Israeli Pound (It) US$1.00 = It 3.5 Iz 1.0 a US 28.6¢ It 1 million - US$286,000 Fiscal Year
April 1 - March 31
Units of Weights and Measures
Metric Metric: British/ITS-Equivalent 1 kilometer (km) = 0.62 miles (mi) 1 meter (a) 2 - 3.28 feet (ft) 1 squarekilometer (km') - 0.386 squaremiles (sq mi) 1 metricton (m ton) = 0.98 lg ton 1 metricton (m ton) - 1.1 US shortton Abbreviations.
ADT - Average Daily Traffic BCEO( - BureauCentral d'Etudes pour les Equipements d'Outre-Mer (Consultants - France) FYB - First Year Benefit GNP - Gross National Product IER - Internal Economic Return IPA - Israel Ports Authority PW:D - Public Works Department SETEC - Societe de Etudes Techniques et Economiques (Consultants - France) I S R A E L
APPRAISAL OF A SECOND HIGHWAY CONSTRUCTIONPROJECT
TABLE OF CONTENTS
Page No.
SUMMARY AND CONCLUSIONS ...... i
I. INTRODUCTION ...... 1
II. BACKGROUND ...... 2
A. General ...... 2 B. The Transport Sector ...... 2 C. Transport Policy and Coordination ...... 4
III. HIGHWAY SECTOR ...... 5
A. The Highway Network ...... 5 B. Characteristics and Growth of Road Traffic ...... 6 C. Highway Administration ...... 6 D. Highway Financing and Planning ...... 7 E. Highway Engineering ...... 8 F. Highway Construction and Maintenance ...... 9
IV. THE PROJECT ...... 10
A. General Description ...... 10 B. Highways to be Constructed or Improved ...... 10 C. Consulting Services for Construction Supervision ...... 11 D. Testing and Laboratory Equipment ...... 11 E. Cost Estimates and Financing ...... 12 F. Disbursements ...... 13 G. Execution of the Project ...... 13
V. ECONOMIC EVALUATION ...... 14
VI. RECOMMENDATIONS ...... 17
This report was written by Messrs. P. C. de Man (Engineer) and B. Shields (Economist), with the cooperation of Mr. G. McBride (Economist) of the Special Projects Department. The project was appraised in December 1970. TABLE OF CONTENTS (Continued)
ANNEX
Highways to be Constructedor Improved
TABLES
1. ConsultantsEmployed for FeasibilityStudies and Detailed Engineering 2. Distributionof Traffic between Road and Rail 3. Revenues from Motor Vehicle Taxation 4. Highway System by Jurisdiction 5. Length of Paved Primary System Roads, by Width 6. Motor Vehicle Fleet 7. Truck Fleet by Load Capacity and Fleet Type 8. Civil Motor Fuel Consumption 9. Expenditureson Public Highways 10. Standards for Geometric Design of National Highways 11. Roads to be Constructedand Cost Estimates 12. Estimated Schedule of Disbursements 13. Traffic on Project Roads and Economic Rates of Return 14. Vehicle Operating Costs
CHARTS
1. Organizationof Ministry of Transport 2. Organizationof Ministry of Labor and Public Works Department
MAPS
1. General Location Map 2. Project Roads 3. Tel Aviv - Ayalon Expressway I S R A E L
APPRAISAL OF THE SECOND HIGHWAY PROJECT
SUMMARY AND CONCLUSIONS i. The very high rate of economic growth achieved by Israel over the past decade has been accompaniedby high rates of growth in vehicular traffic. Israel is a small, densely populated country and depends much more on high- ways than on other modes of transport. The motor vehicle fleet has grown from 51,000 in 1960 to about 219,000 in 1970. From 1948 to 1962 the basic structure of the national highway network was developed. From 1963 to 1970 the major emphasis was on completing the main inter-urbanroad network. Between 1971 and 1975 efforts will be concentratedon ensuring that the addi- tion of capacity keeps pace with rapidly increasing traffic and that major bottlenecksare eliminated or avoided. ii. This report appraises a project for building or upgrading eight road sections totalling 121 km and for the provision of four interchanges on existing roads. The location of these roads and interchanges,mainly concentratedin the heavily populated part of the country in and around Tel Aviv, is shown on Maps 1-3. None of the project roads is in the occupied territories. The project has been based on feasibilitystudies and detailed engineering undertaken by the Public Works Department (PWD) of the Government and by Israeli and foreign consultants. Detailed engineeringfor the project is virtually complete. The cost estimates, including contingencies,are con- sidered reliable. iii. The Bank made a first highway loan (US$22 million equivalent) to Israel in 1q62. This project, comprising the constructionof main and dis- trict roads and a transnort survey, was satisfactorilycompleted in 1966. It also led to improvementsin highway planning and constructionpractices which provided a basis for preparing the project now under construction. iv. The cost of the proposed Second Highway Project, including con- sulting services for constructionsupervision and the procurementof some materials testing equipment, is estimated at US$91.3 million equivalentwith an estimated foreign exchange component of US$37.5 million equivalent or 41%. The proposed loan of US$30 million would finance about 80% of the foreign exchange cost. v. The project is technicallyand economicallysound. The internal economic return of the differentworks ranges from 14% to 33%. The combined yield is 22%. vl. Constructioncontracts will be awarded on the basis of interna- tional competitivebidding. A first round of prequalificationof contractors - ii - has already been carried out in an atceptable manner. E-xecutionof the pro- ject woild be the respt1insibilityof the PWD, except for the Ayalon express- way in Tel AViv, fot the planning and construction of which a special author- ity, the Netivey Ayalon Ltd., has been created. vii. The ptoject is suitable for a Rank loan of US$30 million equival- ent. An a'pproytpiate term would be 20 yegrs, includinga five-yeargrace period. I S R A E L
APPRAISAL OF -IE SECONDHIGHTWAY PROJECT
I. INTRODUCTION
1.01 The Government of Israel has asked the Bank to help finance its 1971-75 highway developmentprogram. 'rhisprogram has been designed to improve and upgrade the main highway network so that it may handle rapidly growing transportdemands in the country. It comprises the construction of expresswaysand four-lane divided highways, the constructionof grade- separated interchangeson existing roads and the reconstruction,improve- ment or new constructionof two-lane highways.
1.02 Bank missions visited Israel in 1969 to examine the Government's approaclhto highway planning. They concluded that the Bank could usefully assist in financing the 1971-75highway plan (then being prepared), and a group of projects was identifiedas suitable for further study for inclu- sion in a Bank project. After the Government refined the cost estimates and undertook an economic analysis of the proposed investments,a shorter list of projects was selected and presented to the Bank for consideration.
1.03 The proposal for Bank financing comprises 12 high priority proj- ects, consulting services for supervisionof constructionof these projects and procurementof some materials testing equipment. The estimated cost is about US$91.3 million equivalent or about 63% of the estimated capital ex- pendlitureson highways in the 1971-75plan period. Most of the proposed projects are located in the densely populated area in and around Tel Aviv, the largest single project item being the first stage of the Ayalon express- way in that city.
1.04 This would be the third Bank loan for the transport sector. The first was a loan (265-IS) of US$27.5 million equivalent made in 1960 to help finance the constructionof the port of Ashdod. The second (323-IS)of US$22 million equivalentwas made in 1962 for the constructionand improve- ment of 611 km of main and district roads and 460 km of feeder roads. It also included the transportsurvey carried out in 1964 and 1965 by the French consultants,Bureau Central d'Etudes pour les Equipementsd'Outre-Mer (BCEOM) andlSociete de Etudes Teclniques et Economiques (SETEC),which served as a starting point for national transportationplanning in Israel and provided the basis for the proposed Second Highway Project. The First Highway Project was carried otutsatisfactorily within the original constructiontime and cost estimates.
1.05 This report was prepared by Messrs. P.C. de Man (engineer)and B. Shields (economist)with the cooperationof Mr. C. McBride (economist) of the Special Projects Department on the basis of feasibilityand final - 2 - engineeringstudies prepared by the Israeli Public Works Departmentand several Israeli and foreign consulting firms (see Table 1), and on the basis of an appraisalmission which visited Israel in December 1970.
II. BACKGROUND
A. General 2 2.01 With an area of almost 21,000 km , Israel is similar to New Jersey in size. The Negev Desert in the south constitutesabout 50% of Israel's area. The populationis about 3 million and has grown at over 3% p.a. over the past decade. The bulk of the population,over 80% of it urban, is concentratedin the central area of the country bounded by Haifa, Tel Aviv and Jerusalem. The Tel Aviv metropolitanarea, comprising seven mtuaicipalities,is Israel's largest agglomeration. In 1969, it had a population of 882,000, about 30% of the country's total. Tel Aviv has rapidly suburban- ized in recent years, and this has contributedto the transportproblem within the metropolis. It is in the highly populated central area of the country that rapidly growing traffic volumes require a substantial increase in highway network capacity. The proposed project would help provide this.
2.02 Agriculturehas historicallyplayed an important role in Israel's economy, but its relative significancehas been declining. Its share in national income is now 8%, although Israel produces three-fourthsof its food needs, plus a large citrus surplus for export. Industry employs about one-fourth of all workers; its share in national income is about the same. Industrial output has expanded sixfold since 1950. Export production and import substitution are the twin aims of industrial policy.
2.03 GNP has grown at 8% p.a. since 1966 and similar growth is ex- pected between 1971 and 1975. GNP (at factor cost) per capita in 1970-was equivalent to US$1,634. The balance of payments has traditionally,been characterizedby a large excess of imports over exports, in most years off- set by large unilateral transfersand long term capital inflow. In 1969, however, official reserves fell slharplyand at the end of 1970 they were equivalent to two months' imports.
B. The Transport Sector
2.04 General: The surface transportsystem consists of 'about9,100 km of road, 530 km of main railway lines and a pipeline network for crude and refined petroleumproducts. Especially since 1967, Israel has been heavily dependent on sea and air transport for foreign trade.
2.05 Internal transport services are provided by highways, pipelines, airways and railways. Freight and passengers carried by internal air transport are insignificant as a percentage of total domestic transport. The distributionof other overland freight traffic between road and rail is 80% to 20%. Road transportcarried 98% of surface passenger transport in 1969. Further details are given in Table 2.
2.06 The Government's 1971-75development plan predicts that the output of the transportationand communicationssector will be 40% higher in 1975 than in 1970. This is reasonablesince it grew at a rate of almost 12% p.a. between 1960 and 1970, but to attain the growth target, heavy investment will be required and planned public and private investmentsin the sector total IS 3,690 million (US$1,054million equivalent),with a high foreign exchange component (perhaps 60%). The capacity of both the merchant marine fleet and the civil aviation fleet will be increasedconsiderably. Large complementaryinvestment will be required in both seaports and airports. Infrastructuralinvestment in urban and inter-urbanroads, access roads and to improve utilizationof the road system, e.g. signalization,will also be heavy.
2.07 Highways: The highway network and details of motor traffic are discussed in Chapter 3.
2.08 Railways: Israel State Railways operate about 800 km of lines, including 530 km of main line. They mainly carry freight and only 25% of their revenue is from passenger traffic. After declining since 1964, freight traffic rose by 46% between 1967 and 1969 to 435 million ton-km, principally because of increasedmineral traffic. The railroads carry less than 2% of the 22 billion passenger-kmtraveled in the country annually; in standard of service and frequencythey cannot competewith buses and taxis.
2.09 Ever since their inceptionin 1949, Israel State Railways have had annual deficits, partly because of low utilizationand partly because of low rates and fares, which are fixed by the Government. The net operat- ing deficit in 1968-69was IL 5.4 million, 16% less than that of the prev- ious year. This was entirely due to increasedfreight traffic, since pas- senger traffic continued to decline. The financial position is expected to improve further over the next two years as more freight traffic is hauled over recently opened extensionsin the Negev. The Ministry of Transport is planning a preliminarystudy of a new high speed line between Jerusalem and Tel Aviv, which may become viable within the next decade.
2.10 Ports: The Israel Ports Authority (IPA), set up in 1961 on the advice of the Bank in making Loan 265-IS, operates the ports of Haifa, Eilat and Ashdod. Tankers are handled at special facilitiesat each port, outside IPA's authority. Haifa is still the largest port in the country, although Ashdod is increasingits relative share and is now the principal port for exports. The two ports handled 3.6 and 2.5 million tons respective- ly in 1969, and together are expected to handle 9 million tons in 1979, while the Red Sea Port of Eilat, which now handles 0.4 million tons per year, will be handling 1.4 million tons in 1979. The increasingtraffic at the two largest ports reflects increased traffic demands on land transportmodes be- tween the ports and the major population centers, especiallyTel Aviv. The -4-
IPA is currently expanding port facilities at Ashdod (one container berth) to be followed by Haifa and Eilat. All ports are efficientlymanaged, uti- lizing modern mechanical cargo-handlingequipment. In 1968/69, the IPA had a surplus of IL 1.8 million.
2.11 Shipping: The Government has placed considerableemphasis on the developmentof its merchant marine, which now totals two million tons dead- weight. Two companies, Zim and El Yam, control 90% of national shipping capacity. Zim is the national shipping llne, but is being turned into a public corporation. El Yam is private. Cargo carried by Israeli companies in 1969 was 5.5 million tons, 4 million in Israeli foreign trade and 1.5 million in trade between foreign ports.
2.12 Aviation: The Israeli Government owns an internationalairline, El Al. Over the period 1960 to 1969, El Al's output grew by an average of 15.5% per annum. In 1967-68, El Al arased its accumulated loss and since then has recorded a profit (I6 5 million in 1969-70).
2.13 The largest domestic aviation company, with about 75% of total business, is Arkia Airways, a private company with some government capital. It is engaged in regular internal passenger and freight traffic, special tourist flights and other charter business. Passenger traffic on regular routes increasedrapidly from 176,000 in 1967 to 279,000 in 1969.
2.14 Lod InternationalAirport handles over one million passengers and 25,000 tons of freight per annum. It is run on a strictly commercial basis. It has a program for expansion during the 1970's to cope with the expected large increase in traffic and to accommodatejumbo jets.
2.15 Pipelines: Israel has a network of crude oil, refined products and gas pipelines. A recent major addition was the 42-inch Eilat-Ashkelon oil pipeline which was put into operation in February 1970. It has a capa- city of 20 million tons of crude oil per year. Real output of the pipeline transportationindustry rose by 31.6% in 1969 compared with 26% in 1968 and 4.2% in 1967.
C. TransportPolicy and Coordination
2.16 The Ministry of Transport is responsiblefor public transport policy in Israel. The Ministry assists local authoritiesto plan and fi- nance arterial road improvementsin urban and metropolitanareas. It super- vises the public transportationservices and sets standards of service. The organizationis shown in Chart 1.
2.17 The Ministry is responsible for the operation of international and domestic airfields and controls the Israeli aviation companies. It also controls the merchant marine and operates berthing facilities not under the responsibilityof the Port Authority. - 5 -
2.18 Responsibilityfor planning, constructingand maintaining inter-urban highways is vested in the Public Works Department (PWD) of the Ministry of Labor (para. 3.04).
2.19 In general, transport is well planned and coordinated. There is no obvious conflict between modes. There are no restrictionson entry in- to the trucking business, nor on choice of mode by shippers. Trucks are not restricted to particular routes except by load limit regulations.
2.20 Highways are the predominantmode of both freight and passenger transport. The motor vehicle fleet is increasing at a rate similar to that in many European countries, raising similar problems of highway capacity and parking. The principal highways in and between the main centers of population and economic activity are working close to capacity and the major task facing transportplanners is the properly timed provi- sion of additional capacity on this part of the transport system.
2.21 The government levies heavy taxes and licence fees on vehicles, especiallyprivate ones, and taxes on motor fuel are also high. These are imposed for a variety of reasons: balance of payments, restrictionof private consumptionand income redistribution. If the defense burden be- comes less in future, they can be expected to be lowered accordingly. Cur- rently, the combined yield of these taxes (Table 3) far exceeds (more than four times) what would be required to pay for current maintenance of and additions to the highway network. As a complement to the policy of re- straining the growth of private passenger transport,both bus and rail pas- senger transport are subsidized to some extent (about IS 30 million per an- num); this is a small price for avoiding the costs of the higher levels of congestion which would result from greater use of private transport. Pub- lic transport is still used for approximately70% of all trips made in the Tel Aviv metropolitanarea.
III. HIGHWAY SECTOR
A. The Highway Network
3.01 The public highway network (1969) consists of about 8,900 km of urban and inter-urbanhighways (Table 4). The government directly maintains the inter-urbannetwork of 3,300 km, while 1,000 km are jointly maintained by the government and local authorities and a further 4,600 km are maintained entirely by local authorites. There are 200 km of road designated as priv- ate. Over 4,000 km are paved. Recent improvementsin the inter-urbannet- work can be assessed from Table 5 which shows the trend towards wider high- ways and multi-lane facilities.
3.02 Israel has basically a good highway network, providing access to all parts of the country by means of, for the most part, all-weatherroads. However, some sections (especiallyin the densely populated area around Tel Aviv) are congested and require additional capacity. The 1971-75 highway program has been designed with the main objective of providing this capacity.
B. Characteristicsand Growth of Road Traffic
3.03 The motor vehicle fleet in 1970 was estimated at 219,000 (Table 6). In 1960 it was 51,000, and thus during the past decade has grown at an average annual rate of 15.6% p.a., cars increasing at 19.8% p.a. and trucks at 11.5% p.a. During the period 1965-70 growth has been slower, 12.6% p.a. for cars and 9.0% for trucks. The percentage of cars in the fleet has increased from 47 in 1960 to 66 in 1970. The average size of trucks has been getting smaller in the last few years due to the increasing number of pick-up type trucks (Table 7). The most rapid increase in truck re- g{ctrationsbetween 1965 and 1969 took place in the categories up to 2.9 ton load capacity, 15.5% p.a., whereas registrationsof 3 ton and larger trucks increased at only 1.5% p.a. Motor fuel consumption (Table 8) grew less rapidly than vehicle registrationsover the same period, reflecting the relative increases in both private cars and light trucks. Diesel sales grew more rapidly than gasoline sales, reflecting the extensive con- version of heavy trucks and taxis to this fuel.
C. Highway Administration
3.04 The PWD in the Ministry of Labor is responsible for the planning, constructionand maintenanceof the inter-urbanhighway network. It also has a division for public buildings (see Chart 2). The PWD is headed by a director to whom the head of the Roads Branch is a deputy. In addition to its headquarters,located in Tel Aviv, the PWD has five district offices, which in their turn are divided into smaller units (sub-districts).
3.05 The main office of the Roads Branch has three divisions: Mate- rials and Research, Operations,and Planning and Design. The Central Roads Laboratory under the Materials and Research Division has developed adequate proceduresfor the quality control of road building materials and soils. It supervises smaller district and field laboratoriesand also contributes to research. The Operations Division coordinateshighway main- tenance and supervisesroad construction. This division will also control the Bank-financedproJects for PWD. The Planning and Design Division is in charge of planning and design of roads and bridges. This division has supervised the consultants employed for the detailed engineeringof the project roads.
3.06 The Netivey Ayalon Ltd. set up in 1966 as a public corporationby the Ministry of Transport and the Municipalityof Tel Aviv, is responsible for the Ayalon project. Its staff is small, about 15, headed by a General Manager, and extensive use is made of consultantsin preparing the project. -7-
The corporationhas been active in acquiring the right-of way for the pro- posed expressway,and in supervisingconsultants' work for the evaluation, preparationand design of the project. The corporationis required to co- ordinate its work with the City Engineers in Tel Aviv and the adjacent muni- cipalities Ramat Gan and Givatayim.
3.07 In order to cope more efficientlywith transportproblems in the Tel Aviv metropolitanarea and to implement the 1968 TransportationMaster Plan (para. 3.12), the Ministry of Transport and the relevant local authorities are planning to create a "MetropolitanTransportation Unit". The draft proposals for establishingthis entity indicate that the unit would be concernedwith transportproblems in the metropolitanarea and would have region-wideresponsibilities for transportplanning, project implemention, maintenanceand improvementof major transport facilities,traffic engineer- ing management,and control, inspectionand enforcementof traffic regula- tions, and parking. Essentially,the new organizationwould be an extension of the role of Netivey Ayalon Ltd., and the latter would be incorporated into it. The Bank has asked to be kept informed of developmentsregarding the establishmentof the proposed TransportationUnit and the Governmenthas given assurances that if this organizationtakes over the responsibilities of the Netivey Ayalon Ltd. it will maintain staffing and organizationalar- rangements for coordinatingand administeringthe Ayalon project (para. 4.05) satisfactoryto the Bank.
D. Highway Financing and Planning
3.08 A breakdown of expenditureon highway constructionand maintenance for the years 1961-62 to 1969-70 is given in Table 9, together with fore- casts to 1974-75. The large increase in joint government and local author- ity spending on roads in 1971-74 is principallydue to the proposed Ayalon expressway.
3.09 The 1971-75 highway developmentprogram has been competentlypre- pared by the PWD and Israeli and foreign consultants. The basic data for highway planning are collected by various government departments,and the PWD Planning and Design Division is competent.
3.10 The Bureau of Statistics carries out an annual traffic enquiry on all roads in the national network. The counts include at least one manual count per annum for vehicle classificationpurposes.
3.11 The Government intends to continue to collect data needed for pro- per planning and operation of its primary highways. As part of its program for improving informationon the highway system and developing a plan data base similar to the U.S. Highway Capacity Manual but directly related to Israeli conditions,the PWD is arranging for the Bureau of Statistics to carry out studies in 1971 of vehicle operating speeds on different types of road and in different traffic conditions. It also hopes to computerizethis informationtogether with the annual traffic information (para. 3.10) and the highway inventorydata (para. 3.19) in order to plan future highway im- provement programs on the basis of complete network analysis. - 8 -
3.12 In 1966 the Ministry of Transport initiated a comprehensivetrans- port study for the Tel Aviv metropolitanarea. The study was carried out by the Israeli consultants,Kolin and Zahavi, under the guidance of steering and technical committees in which the relevant municipalitiesand the two bus cooperativesoperating in the area were represented. The study was completed in 1968 and resulted in a TransportationMaster Plan for the metropolitanarea. This plan contains recommendationsrelated to public transportsuch as the reschedulingof bus routes and the constructionof a central bus station and railway link between the northern and southern railway station (see Annex). It further p;esented master plans for park- ing and for improving and constructingroads. The recommended road network, including the Ayalon expressway,was almost totally incorporatedin the 1968 Tel Aviv - Yafo Master Plan, a general outline scheme for land use in the municipality. The recommendationsfrom the 1968 TransportationMaster Plan are being used as a policy guideline for improvementsin the transportsector in the metropolitan area and as a basis for investmentdecisions. The main task of the proposed MetropolitanTransportation Unit (para 3.07) would be to coordinateimplementation of this plan.
E. hIighwayEngineering
3.13 The PWD design standards for highway constructionare given in Table 10. These standards are sound and consistentwith traffic require- ments. The majority of the roads included in the proposed project have been designed for a speed of 100 km/hr. Exceptions are the Ayalon express- way (95 km/hr) and the Rishon - Rehovot road (80 km/hr).
3.14 The "Traffic Regulation 1961" prescribing limitationsof size and gross weight of vehicles, allows 12 m ton per single axle and 17.5 m ton for tandem axles. For balance of payments reasons and because of the heavy demand for transport, the Governmentin 1966 temporarilyincreased the maximum allowed gross weights for vehicles of 6 tons and over by 35%. For 1971 these overweightshave been reduced to 10-25% for different catego- ries of vehicles and it is planned to further reduce them based on the results of a proposed axle-load study (para. 3.15).
3.15 The weight regulations are not strongly enforced and no reliable Lifortnationon actual axle loads of vehicles using the roads exists. In particular,the direct influenceof the increased permissible gross loads (para. 3.14) on the axle loads of vehicles is not known. The Ministry of Transport and PWD are fully aware of the damage that overloadedvehicles could cause to the roads. They therefore propose to undertake a survey of the axle loads on the roads as a basis for determiningappropriate load limitations. The loan makes provision for the purchase of mobile weighing devices for this study. The study will be carried out in 1972 and during negotiationsassurances were obtained from the Governmentthat the weight control regulationswill be reviewed and, if necessary,amended in the light of the results of this study, and that adequate measures will be taken for enforcement. - 9 -
F. Highway Construction and Maintenance
3.16 Until recently, construction of the inter-urban roads has mostly been carried out by PWD by force account, although sub-contracts for the supply of materials and construction of bridges and, less frequently, for earthworks or paving were awarded to local contractors. In 1962, for the first Bank highway project, foreign contractors did not tender. At that time, the local contracting industry was not well developed and the Bank therefore agreed to force account work with sub-contracting to local con- tractors. The project was successfully completed within the original construction time and cost estimates.
3.17 During the past four years increasing use has been made of con- tractors and, of the about IS 200 million spent on highway construction in this period, 30% to 40% was contracted through national competitive bidding. Contractors are prequalified and classified according to size and type of the work. At present, five contracting companies with both the experience and the equipment to undertake large highway projects are qualified by PWD for all highway construction work, and five other firms for contracts up to Ib 5 million (US$1.5 million equivalent).
3.18 In agreement with the Bank, the Government in September 1970 in- vited proposals from interested contractors to prequalify for the construc- tion of the proposed project. Six foreign firms and eight local firms were subsequently qualified to participate in tendering (para. 4.15) and therefore contracting difficulties similar to those for the First Highway Project are not expected.
3.19 Routine maintenance of inter-urban roads is carried out by PWD through district offices, which have their own equipment and workshops. PWD has made a detailed inventory of all the roads for which it is respon- sible. Every two years this inventory is updated to plan and budget for periodic maintenance and improvement. A computer program has been developed to process the data obtained. Maintenance operations are adequately costed, and an equipment fund exists for the renewal of maintenance equipment. The standards of maintenance are good and the Government has confirmed that it will continue to maintain the inter-urban highway network adequately.
3.20 Construction and maintenance of local streets are the responsi- bility of the various municipalities. In Tel Aviv these works are mainly carried out after competitive bidding among prequalified contractors. Apart from patching and small pavement repairs, all routine and periodic mainten- ance work in Tel Aviv is by contract, supervised by municipal staff. This system works satisfactorily, and the quality of maintenance is acceptable.
3.21 It is planned that after the completion of the Ayalon project its maintenance will be carried out by Netivey Ayalon Ltd. or its successor (para. 3.07) and the Government has assured the Bank that it will make satis- factory arrangements therefor. - 10 -
IV. THE PROJECT
A. General Description
4.01 The constructionand improvementworks are listed with their esti- mated costs in Table 11 and shown in Maps 1-3. They comprise about 63% of the 1971-75 highway program (para. 1.03). A detailed descriptionof these projects, none of which is located in the occupied territories, is given in the Annex. Military traffic constitutes a small fraction of total traf- fic on the project roads and the feasibility of the projects would not be significantly affected by its presence or absence.
B. Highways to be Constructed or Improved
4.02 The proposed project consists of:
(i) the construction of the first phase of the Ayalon express- way in Tel Aviv (7.0 km), including a canal for regulating the Ayalon creek (project 1);
(ii) the construction of the Ayalon-Ganot-Lod-Ramleh expressway (project 2), totalling about 18.5 km;
(iii) the construction of four grade-separated interchanges on the eastern bypass of Tel Aviv and the Tel Aviv-Haifa road (projects 5-8);
(iv) the construction of three sections of four-lane divided highway, totalling about 32.1 km between Beit Dagan and Ramleh (Project 3), Rishon-le-Zion and Rehovot (Project 4) and Ra'anana and Beit Lid (project 9);
(v) the reconstruction and improvement of the Shefar Am-Nazareth and the Bat Shilomo-MissaffAmakim Ifiglhways(projects 10 and 11), totalling about 42.2 km;
(vi) the construction of a 21 km highway from Beit Kama-Beer Sheba (project 12);
(vii) consulting services for supervising construction of the major part of the highways included in the project; and
(vtii) the purchase of research and testing equipment.
4.03 The Ayalon expressway (project 1) is the largest single project item. It is the first phase (7.0 kn) of an expressway running from the Petah-Tiqva road in the north of Tel Aviv to the southeastern limit of the citv, where it connects with the proposed Ganot-Lod expressway (project 2). The main function of this first phase will be to serve as a collector for inter-urbantraffic from south and east of Tel Aviv and as a distribu- tor for traffic among the main east-westarteries in the city. Thus it will relieve congestionon the municipal roads. The first phase provides basically four lanes and includes the constructionof four interchanges, seven bridges and a 5.4 km long canal for regulatingthe Ayalon creek. It is planned that eventuallythe expresswaywill be extended northward to join the main road to Haifa and southward to the projectedPalmachim-Ashdod expressway. Constructionof the expresswaywas recommendedby the consul- tants BCEOM/SETEC,who conducted the 1966 transportationsurvey financed under the First Highway Project. It is only a partial solution to the total transportproblem of Tel Aviv but is compatiblewith other necessary improve- ments. The constructiondoes not preclude the adoption of other solutions to future urban transportproblems.
4.04 To ensure that local streets connectingwith the proposed first phase of constructionof the Ayalon expressway are capable of accommodating estimatedtraffic to and from this facility,the Netivey Ayalon Ltd., to- gether with the consultantsPhilippe Ewart and Associates (Canada)and Prof. J. Leisch (U.S.) have developeda program of street improvementscom- prising (see Map 3) constructionof the La Guardia street west of the ex- pressway and widening and improvementof sections of the Petah-Tiqvaroad and Holon road. The costs of these improvements,estimated at It 10 million, will be financed by the Governmentand during negotiationsassurances were obtained that these works will be carried out in phase with the Ayalon project.
C. ConsultingServices for ConstructionSupervision
4.05 The PWD is capable of supervisingconstruction of projects for which it is responsible,but, since it does not have enough staff, it will employ consultants to assist in supervising most of the proposed projects. PWD will coordinatethis work. Consultantswill also be employed to super- vise constructionof the Ayalon project and the Netivey Ayalon Ltd (para. 3.06) will establish a small unit within its organizationfor coordinating and administeringthe project. Both the Netivey Ayalon Ltd and the PWD have agreed to seek proposals from qualified firms upon terms of referencesatis- factory to the Bank. Most of this work will be entrusted to local firms.
D. Testing and LaboratoryEquipment
4.06 To test materials for the project, some additionalequipment is needed in the Central Roads Laboratoryof PWD. The loan makes provision for the purchase of this equipmentand for the acquisitionof mobile weigh- ing devices for the proposed axle-loadstudy and for the enforcementof the regulationsregarding vehicle weights (para. 3.15). - 12 -
E. Cost Estimates and Financing
4.07 The total cost of the project, includingallowances for quantity and price contingencies,is estimated at US$91.3 million equivalent. A summary follows:
Summary of Project Costs (July 1970 prices)
Pounds (million) US$ (million) Foreign Local Foreign Total Local Foreign Total Exchange
1. Highway Con- struction 134.2 97.2 231.4 38.3 27.8 66.1 42
Quantity con- tingencies 13.4 9.7 23.1 3.8 2.8 6.6 42
Price escala- tion 26.8 19.4 46.2 7.7 5.5 13.2 42
Total, con- struction 174,4 126.3 300.7 49.8 36.1 85.9 42
2. Construction Supervision 12.6 4.2 16.8 3.6 1.2 4.8 25
Contingency allowance 1.3 0.4 1.7 0.4 0.1 0.5 25
Total super- vision 13.9 4.6 18.5 4.0 1.3 5.3 25
3. Equipment for materials re- search and testing 0.3 0.3 - 0.1 0.1 10)
Total for Project 1&,K.3 131.2 319.5 53.8 37.5 X11j 41
4.08 Detailed estimates for the constructioncosts are given,in Table 11. The estimatea for the Ayalon project have been prepared by con1uItants (Tushia,Israel) and for the other projects by PWD in cooperationwith local consu}.tants(see Table 1). Quantities used for the estimateswere derived from virtully completeddetailed engineering. Unit prices, based on July 1970 prices, are considered adequate. A 10% contingencyhas been added to the estimated constructioncosts for quantity increases. This is considered - 13 - reasonable in view of the advanced stage of detailed engineering. An allow- ance for price increases has been added to the cost estimates based on the proposed constructionschedule and escalationof 5% per annum in both local and foreign prices.
4.09 According to detailed calculationsby the Bank of Israel and the PWD, confirmedby Bank staff, the foreign exchange component for highway constructionin Israel would be 37.5-51% depending on whether works would be carried out by local or by foreign contractors. Based on the results of the first round of pre-qualificationof contractors for the highway project and the size of the individual contracts, an equal participation of foreign and local contractors in constructingprojects 1-3 (Table 11) is assumed, while constructionof all other projects is expected to be by local contractors only. Thus the foreign exchange component for construc- tion would be about 42%.
4.10 The 25% foreign exchange component of costs of consulting services reflects the estimated division of supervisioncontracts between local and foreign firms.
4.11 The total foreign exchange componentof the project is estimated at US$37.5 million, but the loan will be limited to US$30 million or 80% of the total foreign exchange componentof the project.
F. Disbursements
4.12 It is proposed that the loan would finance the foreign exchange cost of consulting services, c.i.f. cost of equipment and about 33% of the estimated constructioncost. Based on this and the schedule for construc- tion mentioned in para 4.17, an estimated schedule for disbursementof the loan funds has been prepared and this is shown in Table 12. Since the loan amount is based on $30 million or the foreign exchange component,whichever is lower, it is proposed that if construction costs less than is estimated, the disbursementpercentage should be increased to a maximum of 42%, the estimated foreign exchange component of constructionwork under the project.
G. Execution of the Project
4.13 The loan would be to the Covernment of Israel which will provide the remainder of the funds required for the project. Provision will be made for the Ayalon expressway through the budget of the Ministry of Trans- port and for the other project items through the budget of the PWD. The amounts for the proposed project included in the draft 1971-72 budgets are respectivelyIS 30 and IS 40 million, for land acquisition,relocation of utilities and constructioncosts. These amounts are expected to be suf- ficient. - 14 -
4.14 The executing agency for the Ayalon project will be the Netivey Ayalon Ltd., which will also be responsiblefor future maintenance of this project. PWD will be the executing agency for all other projects and will maintain them.
4.15 The Governmenthas already started prequalifyingcontractors (para. 3.18). Thirteen local and six foreign firms (two U.S., one Canadian,one Dutch, one French and one U.K.) have applied and in agreement with the Bank the foreign firms and five local firms have been qualified for all works and three other local firms for only part of the project. The Government in- tends prequalifyingadditional firms for a second group of bids in the third quarter of 1971.
4.16 Constructionof the Ayalon and the Ayalon-Ganot-Lod-Ramlehexpress- ways (projects 1 and 2) will each be divided into two or three contracts, giving contractors the option to bid for the contracts separatelyor for any combination thereof. With other project items being let as single contracts, the value of individualbid items could range from US$1.3 million to US$27.4 million equivalent. Constructionof the other projects will be evenly spread aver a four year constructionperiod and all work will be completedby the end of 1975.
4.17 Most of the right-of-wayfor the projects to be constructedis already Government-owned. The remainder is being acquired by the Government under its existing powers which, although slow, are adequate. It is ex- pected that the right-of-wayacquisition for the Ayalon project will be sub- stantiallycompleted early in 1972, and constructionis scheduled to start in mid-1972. In order not to delay construction,both the Netivey Ayalon Ltd. and the PWD have already started relocatingutilities as needed for the project.
V. ECONOMIC EVALUATION
5.01 The project is economicallywell justified. The combined internal economic return (TER) on investmentin all road improvementscontained in the project is 22% and for individual improvementsthe return ranges from 14% to 33%. The first year benefit (FYB) ranges from 10% to 25%, indicating that timing is appropriate. Details are given in Table 13.
5.02 The project works will make possible shorter journey times by eliminating bottlenecks, by reducing travel distances and by permitting faster travel speeds. To estimate benefits, the PWDand Ministry of Trans- port costed typical vehicle operation in Israel under different operating conditions. The economic costs of professionaldrivers' time and of the time of passengers travellingfor business purposes were also calculated. The unit costs includingproductive driver and passenger time at various speeds are shown in Table 14. They are acceptable. - 15 -
5.03 The economic costs of construction used in the economic analysis are the estimated costs of construction including quantity contingencies, supervision, relocation of public utilities and the economic cost of land taken out of other actual or potential uses for the highway. The tax ele- ment in the estimated cost of construction was deducted to arrive at the economic cost.
5.04 Where the improvement will involve additional future maintenance costs, as in the case of new traffic lanes, these were deducted from annual benefits. If the Bat Shlomo-Missaff Amakim road (Project 11) is not improved as envisaged in the project, a substantial investment in deferred maintenance will have to be undertaken. This cost has been deducted from the cost of the improvement in the economic analysis.
5.05 The origin and destination enquiries used as the basis for traffic assignment to the project roads were carried out for the PWT)by an Israeli transportation consultant, A. Nachson (Israel). Forecast traffic growth rates were used to ascertain 1974 zone to zone movements, and the traffic was then assigned to the project roads, first in the improved state and then in the unimproved state, by a least cost method. Thus, benefits from both traffic diversion and higher standard roads could be calculated by comparing vehicle operating and time costs with and without the improvements.
5.06 Except for the Ayalon expressway (project 1), uniform forecast growth rates were used, as follows (% per annum):
Car Light Commercial Trucks & Buses
1970 - 75 13 10 4
1975 - 80 10 7 4
1980 6 4 4
For most of the project roads the 1970 - 75 growth rates forecast are below those experienced in the past five years. For the Ayalon expressway, traffic after the eighth year after opening has been held constant on the assumption that, capacity having been reached, other improvements, including two addi- tional lanes of expressway, will cater for further growth.
5.07 Savings in congestion costs will be the main benefits from the Ayalon expressway. They are the difference between the costs which will be incurred by users of the expressway and those costs which would be incurred by the same users in travelling on the Tel Aviv street network without the expressway. Benefits from regulating the Ayalon creek and the resulting prevention of flooding (Annex) have not been evaluated in the economic analysis. The costs of complementary improvements to city streets connect- ing with the expressway (para. 4.04) have been included in the economic costs of the project. A single IER for Projects 1 and 2 is given in Table 13 because the traffic assignment to the Ayalon-Ganot-Lod road assumes the construction of the Ayalon expressway. - 16 -
5.08 The benefits from the provision of grade-separatedinterchanges (projects 5-8) include the value of time saved by professionaldrivers and by passengers engaged on business, and the avoidanceof costs incurred by vehicles while stopping and starting at traffic-actuatedsignals. Some of the signals presently in use are fixed-periodsignals; this was accounted for in the analysis by deducting the additional cost which would have been required to convert them from the cost of constructingthe interchange. The cost of maintaining the traffic signals and the roadway at the intersection was compared with the cost of maintaining the interchange,which will be less in each case.
5.09 The benefits from the other projects accrue from combinationsof reduced costs resulting from faster moving traffic and reduced travel dis- tances. In the case of Beer Sheba-BeitKama (Project 12), about 80% of total savings will result from distance savings of 25% compared with the present route taken by the traffic which will be attracted to the new aliguiment.
5.10 The first phase of the Ayalon expressway will be approaching saturation within eight years of opening. The structures of the first phase will be built to permit widening without excessive expenditurewhen traffic demand requires the expansion.
5.11 Sensitivityanalysis was undertaken to ascertain the implications for the economic feasibilityof using a shadow price for foreign exchange. A correctionw¢as made to the foreign exchange component of both costs and benefits using an exchange rate of Il 4.50 to the US$ 1.00 instead of the official ratio of 3.50 to 1.00. It was found that this shadow pricing raised the costs of constructionsomewhat more than road user benefits (11% compared with 5%). The effect of this on the lowest priority road in the project (No. 11) was to reduce the FYB from 10% to 9% and the IER from 14% to 13%. The difference is not critical for an investment decision.
5.12 The PWD and the Bank of Israel regard the forecast rates of traffic growth as the minimum to be expected on the project roads, and in view of re- cent growth rates on these roads this seems reasonable. The construction costs have been carefully estimated and the economic costs of construction used in the analysis included a 10% contingencyamount. In order to ascer- tain how sensitive the feasibilityof the project is to deviations from the estimated traffic growth, constructioncosts and constructionperiod, addi- tional tests were made. Benefits were assumed to be 25% lower than esti- mated and then 25,%higher. Further, constructionwas assumed to be delayed by one year, constructioncosts to exceed the estimate by 15% and benefits to be delayed as a result of the delay in opening the improvement. With these assumptions for the project with the lowest IER (Project 11), the IER would range from 11% to 17% instead of 14% obtained from using the best esti- tiate. The sensitivityanalysis reinforces the conclusion that the project is well justified. - 17 -
VI. RECOMWENDATIONS
6.01 During loan negotiations,assurances were obtained from the Governmenton the followingprincipal points:
(a) It will establish and maintain staffing and organizational arrangementsfor coordinatingand administeringthe Ayalon project satisfactoryto the Bank (paras. 3.07 and 4.05);
(b) The weight control regulationswill be reviewed and, if necessary,amended in the light of the results of the load limitationstudy and adequate measures will be taken for their enforcement (para. 3.15); and
(c) The program of street improvementsin Tel Aviv will be carried out in phase with the Ayalon project (para. 4.04).
6.02 The proposed project constitutesa suitable basis for a Bank loan of US$30 million equivalent. The average useful life (includingthe con- struction period) would be about 25 years; however, on country economic grounds, an appropriateterm would be 20 years, includinga five-yeargrace period.
June 21, 1971
ANNEX
ISRAEL
SECONDHIGHWAY PROJECT
Highways to be Constructed or Improved
Ayalon expressway (project 1)
The Ayalon expressway is projected along the Ayalon creek, a dry bed creek (wadi) which flows only after heavy rainstorms during the fall and winter. The creek runs from the Judean mountains to the coastal plain, crosses the built-up area of Tel Aviv over a distance of about 6 km and terminates in the Yarkon River (Map 3). At times the creek floods the surroundingarea. Already in 1955, municipal authoritiesrecognized that the creek bed and its adjoiningbanks could be utilized as a natural right- of-way to accommodateincreasing traffic demands, and land bordering the creek was "frozen" for future transportationpurposes. In 1966 the Netivey Ayalon Ltd. (para. 3.06) was created for planning, design and construction of the expressway. It employed the consultantsCartier-Cote-Piette-Boulva- Wermenlingerand Associates (Canada) and Philippe Ewart and Associates (Canada) to study the feasibilityof constructingthis road. Their report, submitted in 1968, demonstratedthat constructionof the expresswaywould be economicallyjustified.
The proposed highway project includes a first phase (about 7.0 km long) of constructionof the Ayalon project and a 5.4 km long canal for re- gulating the Ayalon creek.
The expressway is well planned and designed and the proposed de- pressed location along the Ayalon creek about 6 m below surroundingstreet levels provides an aestheticallyattractive solution,well integratedwith the environment. Full attention has also been paid to aesthetic considera- tion in designing the bridges across the Ayalon corridor. The design of the expressway is for eight traffic lanes. In the first phase, however, only four lanes will be constructed. It is estimated that by 1983 the con- struction of additional lanes will be required. The design of the inter- changes also provides for future extensions to accommodateincreasing traf- fic. The bridges at Hashalom road, La Guardia street and Yitzak Sadah road will in the first instance be built to only half of their final width.
The project also includes provision of right-of-way for a possible future rail link between the Central Railway Station on the Tel Aviv - Haifa railway and the Darom Railway Station on the Jerusalem and Beer Sheba lines. The chosen design incorporatesthis railway extension and the regulation ANNEX Page 2 canal within the median strip of the expressway. The Government intends to start construction of this railway link (which would improve rail service between Tel Aviv, Haifa and Jerusalem) shortly after completion of the first phase of the expressway.
Ayalon-Ganot-Lod-Ramleh (project 2)
The two-lane highway between Ganot, at the eastern bypass of Tel Aviv and Lod International Airport was opened for traffic in the summer of 1970. It is proposed to add a second carriageway to this section and to extend this road as a four-lane divided highway west from Ganot to the terminal of the Ayalon expressway and east from Lod to the proposed north- ern bypass of Ramleh (project 3), bypassing these two villages. Thus, the project would improve the connection between Tel Aviv, Lod airport and the eastern part of the country and would direct traffic out of the Ayalon expressway in the most economical manner. The project includes the construc- tion of grade-separated interchanges at Ganot and near Lod and of seven prestressed concrete bridges.
Beit Dagan-Ramleh (project 3)
This is a three-lane road adjoining a four-lane road section in the north to Azur. At its southern end the road passes through the con- gested center of Ramleh, where long traffic delays are encountered. Present traffic is 20,000 vehicles per day and it is growing at much more than the national average. The Ayalon - Lod - Ramleh road (project 2) will divert some of the traffic from the Ramleh - Beit Dagan Road. However, sufficient traffic will remain on it to warrant early reconstruction to a four-lane divided highway bypassing Ramleh. The proposed project includes a grade- separated interchange at Beit-Dagan and bridges to eliminate level crossings over the railway lines from Tel Aviv to Jerusalem and Beer Sheba.
Rishon-le-Zion-Rehovot (project 4)
Rishon-le-Zion and Rehovot with 35,000 and 40,000 inhabitants respectively, are situated 15 and 25 km southeast of Tel Aviv. A third town, Ness Zion, with a population of 12,000 lies midway along the road. Traffic on the road, which is for most of its length a two-lane highway, with 7.0 m pavement and a poor alignment, is approaching saturation. At Rishon, there are 1.2 km of four-lane road and at Ness Zion 1.3 km. The proposed improvement consists of widening 6 km of road to four lanes and improving both vertical and horizontal alingment. The improvement will raise the possible driving speed and considerably relieve traffic conges- tion on the existing road. ANNEX Page 3
Azur, Geha, Abir and Natanya Interchanges(projects 5-8)
The project includes constructionof two grade separated inter- changes on the eastern bypass of Tel Aviv (Azur and Geha) and two inter- changes on the main Tel Aviv - Haifa road, both four-lanedivided highways. Constructionof these interchangeswill assist in the completionof full access control on the most heavily traffickedhighways, thus reducing travel time and improving safety on the roads. The Azur, Geha and Natanya inter- changes will each eliminate one traffic signalized intersection. In addi- tion, the Natanya interchangewill also replace an at level intersection with the Tel Aviv - Haifa railway. After its construction,the Abir inter- change will eliminate two at-grade interchanges,one of which is regulated with traffic lights.
Ra'anana - Beit Lid (project 9)
This road section (about 16.5 km long), running through a fertile agriculturalarea, has a 7.0 m pavement and 2 m shoulders. However, in places, lateral clearance outside the roadway is as narrow as 1.0 m. Both vertical and horizontal alignment are poor and sight distance is inadequate over virtually the whole length. The combinationof poor alignment and slow moving heavy vehicles (over 30% of total traffic)has resulted in low over- all speeds and severe queuing of traffic. The project comprises the improve- ment of the existing road and constructionof a second carriageway. Event- ually, similar improvementswill be undertaken southward to Petah-Tiqva and northward to Hadera.
Shefaram - Nazareth (project 10)
The existing road between Shefar Am, north-east of Haifa, and Nazareth (the regional center of upper and lower Galilee) has a pavement width of only 3.0 m. The pavement condition is bad, and the vertical and horizontal alignments of the road are poor. As a result, only local traf- fic (about 600 ADT in 1970) uses the road at present. The through traffic between Nazareth and the north-east part of Haifa and areas to the north of that city, which would use the road if it were in a good condition,now negotiates the city streets of Haifa and takes a more southerly road via Missaff Amakim to Nazareth. It is estimated that, after completionof the reconstruction,the Shefaram-Nazarethroad will attract over 3,000 vehicles per day from the southern road and relieve congestionon the heavily traf- ficed western section of this road.
Bat Shlomo - Missaff Amakim (project 11)
The present road between Bat Shlomo and M. Amakirnhas a pavement width of about 5 m and a poor alignment. The connecting road from Zichron to Bat Shlomo has been improved in recent years to a 7 m wide pavement and adequate geometric standards. The project will continue these improve- ments from Bat Shlomo to Missaff Amakim. The improved road would attract ANNEX Page 4
traffic between areas south of Zichron and the northern part of the country, including the industrial areas in the northern suburbs of Haifa. This traf- fic would then make use of the western section of the present Nazareth - Haifa road, which will have been relieved of much of its present traffic by the construction of Project 11. About 30% of the forecast 1974 daily traf- fic on the flat Shlomo - Yokneam section and about 20% of that on the Yokneam - Missaff Amakim section will be diverted traffic.
Beit Kama - Beer Sheba (project 12)
The 27 km long road between Beit Kama and Beer Sheba via Eshel Hanasi is the main highway between Beer Sheba, the principal city in the southern region of Israel (1968 population:72,000), and the north and west of the country. This road has many sharp curves, and sight distance is restricced over 60% of its length. The project comprises the construc- tion of a 21 km long two-lane road on a new alignment following the present railwi.1line. The reductionof 6 km in length will provide the greater part of the benefits. Table 1
ISRAEL
SECONDHIGHWAY PROJECT
Consultants Employed for Feasibility Studies and Detailed Engineering
Proiect Feasibility Studies Detailed Engineering
1. Ayalon Expressway Cartier-Cote-Piette-Boulva-Wermenlinger (Canada) Philippe Ewart & Associates Philippe Ewart & Associates (Canada) T.M.D. Engineering Ltd. (Israel) Water Planning for Israel Ltd. (Israel) Yaron-Shimoni Engineering Economic Consulting & Planning (Israel) Services (Israel) Prof. Kassiff (Israel) Prof. Yitzhaki (Israel) Prof. Rowe (U.K.) Prof. Leisch (U.S.) Witteveen en Bos (Netherlands)
2. Ayalon-Ganot-Lod-Ramleh PWD Engineering Services Ltd. (Israel)
3. Beit Dagan-Ramleh Israel Institute for Urban Planning (Israel) Burrows-Zaslovsky (Israel) (for interchange only) Katz (Israel) & PWD PWD
4. Rishon-Rehovot PWD Stern (Israel)
5. Azur Interchange Israel Institute for Urban Planning (Israel) Burrows-Zaslovsky and Yaron-Shimoni (Israel) and PWD
6. Geha Interchange " Engineering Services Ltd. Ami (Israel)
7. Abir Interchange Engineering Services Ltd. Prof. Fuchs (Israel) & PWD
B. Natanya Interchange " " " Engineering Services Ltd. Yaron-Shimoni & PWD
9. Ra'anana-Beit Lid PWD PWD
10. Shefar Am-Nazareth PWD Burrows-Zaslovsky & PWD
11. Bat Shlomo-Missaff Aimakia PWD PWD
12. Beit Kama-Beer Sheba PWD PWD
Source: PWD and Netivey Ayalon Ltd., December 1970.
NOTE: The consultants Nachson (Israel) not mentioned in the list have conducted Origin and Destination Surveys and other traffic studies for Projects 2 - 12.
June 4, 1971 Table 2
ISRAEL
SECONDHIGHWAY PROJECT
Distribution of Traffic between Road and Rail
Freight Traffic: million ton-km
YEAR ROAD % RAIL % TOTAL
1965 1,200 79 325 21 1,525
1966 1,300 81 305 19 1,605 1967 1,400 83 293 17 1,693
1968 1 550 79 402 21 1,952
1969 1,700 80 435 20 2,135
PassengerTraffic: million pass -km
YEAR ROAD % RAIL % TOTAL
1965 12,170 96.9 394 3.1 12,564
1966 13,077 97.3 358 2.7 13,435
1967 15,831 97.9 342 2.1 15,173
1968 17,884 98.1 341 1.9 18,225
1969 21,726 98.4 350 1.6 22,076
Source: Ministry of Transport, December 1970
February 22, 1971 Table 3
I S R A E L
SECOND HIGHWAY PROJECT
Revenues from Motor Vehicle Taxation (millionIE)
1/ 1967/68 1968/69 1969/70 1970/71
Purchase 85 158 225
Annual Registration 77 91 117
Current Operation (fuel and spare parts) 202 223 259 265
Total 364 472 601
Estimated (fuel tax only) oource: Ministry of Finance, December 1970.
February 22,1971 Table 14
ISRAEL SECONDHIGHWAY PROJECT
Highway System by Jurisdiction (cfT t
GOVERNMENT LOCAL YEAR GOVERNMENT& LOCALAUTHORITY AUTHORITY PRIVATE TOTAL 1961 3,073 744 2,755 103 6,675 1964 3,129 756 3,590 227 7,702 1965 3,143 790 3,715 231 7,879
1966 3,158 799 4,077 337 8,371 1967 3,173 830 4,109 406 8,518 1968 3,270 909 4,316 3h3 8,838 1969 3,273 985 4,612 216 9,086
Source: Statistical Abstract of Israel 1970
February 2, 1971 TABLEg
ISRAEL
SECONDHIGHWJAY PROJECT
Length of Paved Interurban Roads, by Width (kn)
1950 1965 1968 1970
All paved roads 1,473 2,988 3,223 3,239 of which:
3 m wide 140 429 386 291
4 m wide 443 854 813 699
5-7 m wide 890 1,604 1,877 2,061
14-21 m wide (multi-lane) - 101 147 188
SoUrce: PID, December 1970
May 12, 1971 rp' it,e 6
1SRAEL
SECONDHIGHWAY Pl(OJECT
Motor Vehicle Fleet!"
Year Private Cars Trucks 2 / Buses Taxis Special-/ Tot_._l
1-960 23,98u0 21,453 2,39l 2,477 8i1-5 51.,i
1'63 60,5$61 31,930 2,927 2,513 ,25-3 9,206t
1()f5 80,2?6 h1,1v318 3,211 ?,r96 1,398 128,779 1966 88,829 45,032 3,389 2,702 1,521 JAI,6473
1967 96,565 67,286 3,5S1 2,692 1,761a.1.S,5
1968 1o09,807 49,86i8 3,715 2,833 1,697 1 67,)900
3I69 131,31] 5y,'568 3,982 3,209 1,913 197,984
1970 14l5,570 63,810 4,150 3,500 2,000 219,030
Average Annual Growth Rates %:
3960-70 19.8 11.5 5.6 3.5 9.4 15.6
196o-65 27.3 16.0 6.0 0.9 13.4 20.0
1965-70 12.6 9.0 5.2 6.l 7.6l 11.2
/ Figures through 1966 refer to March 31 arid,thereafter, to December 31,
2/ Including tractors and semi-trailer combinations.
3/ Ambulances, sanitary- vehicles, etc.
V/ Bstimated.
Source: (1) Statistical Abstract of Israel , 1970
(2) Ministry of Transport, December 1970
February 2, 1971 Table 7
ISRAEL
SECONDHIGHWAY PROJECT
Truck Fleet by Load Capacity (Tons) and Fleet Type
up 20.0+ 15.0-19.9 10.0-14.9 6.0-9.9 3.0-5.9 1.0-2.9 to 0.9 All trucks
1965 ALL TRUCKS 607 103 803 3,765 6,039 9,325 16,172 36,814
Gasoline 34 13 43 392 4,627 9,185 16,063 30,357
Fuel Oil 573 90 760 3,373 1,L412 140 109 6,457
1966
ALL TRUCKS 647 86 782 4,303 5,238 10,457 23,519 45,032
Gasoline 28 14 27 253 3,797 10,364 23,449 37,932
Fuel Oil 619 72 755 4,050 1,441 93 70 7,100
1967
ALL TRUCKS 667 78 762 4,318 5,134 10,834 25,493 47,286
Gasoline 22 9 16 207 3,701 10,738 25,427 40,120
Fuel Oil 645 69 746 4,111 1,433 96 66 7,166
1968
& TRUCKS 723 82 731 4,387 4,945 11,604 27,374 49,846
Gasoline 19 a 14 148 3,520 11,506 27,316 42,531
Fuel 704 74 717 4,239 1,425 98 58 7,315 1969 ALL THIJ(OKS 858 98 809 5,145 5,129 14,388 31,141 57,568
Gasol ine ]." 7 13 139 3,612 1)4,293 31,086 49,169
Fuel Oil 839 91 796 5,oo6 1,517 95 55 8,399
Source: Statistical Abstract of Israel, 1970
Februdrv 2, I1)71 Table 8
ISRAEL
SECONDHIGHWAY PROJECT
Civil Motor Fuel Consumption (Metric Tons)
Gasoline Diesel Total
1960 162.7 105.7 268.4
1961 179.0 126.7 3(05.7
1962 188.0 152.0 340.0
1963 205.9 166.1 372.0
1964 240.o 177.0 417.0
1965 264.2 198.9 463.1
1966 274.8 203.7 478.5
1967 284.2 215.8 500.0
1968 329.6 261.2 590.8 1969 369.2 307.4 676.6
1970 (estimate) 405.5 345.0 750.5
Average Annual growth rates (%)
1960-70 9.5 12.5 10.8
1960-65 10.2 13.5 11.5
1'965-70 8.9 11.6 10.1
Source: Ministry of Finance, October 1970 Table 9
ISRAEL
SECOND HIGHWAYPROJECT
Expenditureson Public Highways (IE.1,O0O)
JOINT GOVERNMENT GOVERNMENT AND LOCALAUTHORITY TOTAL Repairs & Construction Safety Construction & Repair Measures Maintenance & Repair Maintenance
1961/62 3,420 2,010 9,940 600 300 16,270
196h/65 30,566 2,216 1Q,224 4,202 804 48,012
1965/66 41,959 3,709 11,225 5,537 750 63,180
1966/67 39,786 2,878 15,846 4,188 1,746 64,44
1967/68 58,175 1,938 23,515 3,695 1,277 88,600
i968/69 58,416 2,314 19,95o 13,573 11,374 105,627
1969/70 4p,L461 2,120 21,130 31,740 8,209 :Li?,60 F'rec-ast 4* 1970/71 61,o500 6,000 21,500 25,000 12,000 129,000
1971/72 70,000 7,000 22,000 56,ooo 12,000 167,000
1972/73 80,000 7,000 23,000 6o,oo0 13,000 183,000
1973/74 8,-)000 8,000 2b,000 65,ooo 13,000 190,000
1974/75 90,000 10,000 25,000 5O,000 15,000 190,000
* Ministry of Finance forecast.
Source: (1) StatisticalAbstract of Israel 1970.
(2) R3ankof Israel,October 1970.
Notes: (1) 1970/71 data are budgetaryappropriations.
(2) [expenditureon joint Governmoentand Local Authority roads includesthe participationof both bodies.
June 4, 1971 Table 10
ISRAEL
SECOND HIGHWAY PROJECT
Standardsfor GemnetricDesign of National Highways
Elements Design Speed (km/h)
30 40 50 60 80 100 110 120
Minimum Radius of Horizontal Curve (m) 25 45 70 110 350 600 750 900
Maximum Vertical Grade (%) 10.9 10.0 8.0 6.5 5.0 4.0 3.5 3.5
Minimum Radius Crest Vertical Curve (m) 1,000 1,500 2,000 3,000 5,000 9,000 16,000 20,000
Minimum Radius Sag Vertical Curve (m) 500 1,000 1,500 2,000 3,000 5,000 8,000 10,000
Maximum Supereleva- tion (%) 8.0 8.0 8.0 8.0 5.0 h.5 4.5 4.3
Minimum Stopping Sight Distance (m) 30 50 70 90 145 210 250 265
Minimum Passing Sight Distance(m) - - - 350 450 600 720 800
Lane Width on Tangents (m) 3.00 3.00 3.00 3.25 3.60 3.60 3.60 3.75
Shoulder A&dth (m) 1.50 1.50 1.50 2.00 2.00 3.00 3.00 3.00
Source: PWD, December 1970
February 2, 1971 Table 11
ISRAEL
SECONDHIGHWAY PROJECT
Roads to be Constructed and Cost Estimates
Cost Estimatei/ Project No. of (in millions) No. Pro,ject Len th Lanes It US$ (equivalent
1 Ayalon expressway (first phase) 7.5 2 x 2 96.0 27.4 2 Ayalon-Ganot-Lod-Ramleh 18.5 2 x 2 35.0 10.0 3 Beit Dagan-Ramleh 9.1 2 x 2 20.4 5.8 4 Rishon-Rehovot 6.o 2 x 2 4.5 1.3 5 Azur interchange 2 x 2 10.5 3.0 6 Geha interchange 2 x 2 6.3 1.8 7 Abir interchange 2 x 2 4.5 1.3 8 Natanya interchange 2 x 2 7.1 2.0 9 Ra'anana-BeitLid 17.0 2 x 2 13.5 3.9 10 Shefar Am-Nazareth 22.0 2 12.0 3.4 11 Bat Shlono-MissaffAmakim 20.0 2 8.8 2.5 12 Beit Kama-Beer Sheba 20.7 12.8 3.7
Total 121.0 231.4 66.1
1/ As of July 1970. Excludingcontingencies.
June 4, 1971 Table 12
ISRAEL
SECONDHIGHWAY PROJECT
Estimated Schedule of Disbursements
IBRD/IDA Fiscal Year CumulativeDisbursement and Quarter at end of Quarter (US$ thousands)
1971/72 December 31, 1971 March 31, 1972 0,100 June 30, 1972 0,300
1972/73 September 30, 1972 1,300 December31, 1972 3,400 March 31, 1973 6,100 June 30, 1973 9,100
1973/74 September 30, 1973 12,100 December 31, 1973 15,400 March 31, 1974 19,400 June 30, 1974 22,600
1974/75 September 30, 1974 24,000 December 31, 1974 25,600 march 31, 1975 27,300 June 30, 1975 28,100
1975/76 September30, 1975 29,000 December 31, 1975 30,000
May 12, 1971 Table 13
ISRAEL
SECOND HIGHWAY PROJECT
Traffic on Project Roads and Economic Rates of Return
First Internal Year Economic Project Benefit 9.turn No. Project AverageDaily Traffic ( (20 years) 1965 1969 1974
1. Ayalon Expressway - - 40,000 ) (first phase) ) 20 22 2. Ayalon-Ganot-Lod- - 6, OOCr 28,000 ) Ramleh
3. Beit Dagan-Ramleh 7,000 16-18,000 12-28,000 17 25
4. Rishon-Rehovot 8,000 12,500 19,000 15 27
5. Azur interchange - 58,ooo 58,ooo00 10 18
6. Geha interchange 24,000 38,000 61,000 12 24
7. Abir interchange - 25,000 40,000 20 33
B. Natanya interchange 15,000 30,000 48,000 14 26
9. Ra'anana-BeitLid 4,500 8,0O0 / 13,000 25 26
10. Shefar Am-Nazareth - 600 3,7005/ 14 17
11. Bat Shlomo4¶issaff 600-2,000 1,200-3,000 3,250-5,200 10 14 Amakim
12. Beit Kama-BeerSheba - _ 5,600 19 22
1/ In some instances,1963 or 1964 data. 2/ Only part open to traffic Summer 1970 and restrictedto light traffic. / Part of existing traffic diverted to projects 1 and 2. ' 4/1970. 5/ Including 3,000 diverted.
June 15, 1971 Table L4
ISRAEL
SECONDHIGHWAY PROJECT
VehicleOperating Costs (Net of Taxes)Agorot per km
Speedkmhr Car Taxi Lt. Commercial Bus Truck
24 31.9 65.4 60.9 336.2 107.5 32 25.4 50.8 48.2 257.7 95.4 40 22.7 41.8 401 209.5 85.0 48 19.0 36.1 36.0 178.4 81.7 56 17.1 32.7 31.3 156.3 78.3 64 16.2 29.1 28.9 140.7 78.9 72 15.2 26.8 26.9 128.1 79.1 80 14.8 25.2 25.6 120.0 83.5 88 14.4 23.9 24.5 113.7 88.6 97 14.3 23.0 24.0 108.6 94.1 105 14.4 22.3 22.2
Source: PWD, December1970
June 9, 1971 ISRAEL SECONDHIGHWAY PROJECT ORGANIZATIONOF MINISTRY OF TRANSPORT
MINISTER
DEPUTYMINISTER|l
PUBLICRELATIONS DIRECTOR-GENERAL LEGALADVISOR
| DEPUTY |-|DIRECTOR GENE L|
AUDITOR
ECONOMIC TRAFFIC CII VATION AND PLANNING MANAGEMENT RATION AEL RA AYS DEPARTMENT DEPARTMENT
SHIPPING LCNIGMTOOOIA AND PORTS SIESNEEORVICE LOD AIRPORT DEPARTMENTS DEPARTMENT SERVI
August, 1970 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~IBRD- 5222 (2R)
ISRAEL SECONDHIGHWAY PROJECT ORGANIZATION OF MINISTRY OF LABOR AND PUBLIC WORKS DEPARTMENT
MINISECNC
F YOUTH~ ~ ~ DEUT
AUDITO =11IN ADMIISTRAIONEROTORBUGDING D3ATM''
E AUDITORAD MINI IMATENRIALS OPERATIO NS PLAN NIN G AND RESEARCH & DESI1GN
CLENTRATCYL MAINTENANCE | PRELIMINARY
RESEARCH RECONSTRUCTION| BRI DGE DETAILED|
QUALITY CONTROL| NEW ROADSDE55DETAILED|
COORDINATIONDNAI~LE
|SOUTHERN DISTRICT | | NORTHERND STRICT A DR CENTRL DIS JERUSALEMDISTRICT
|MAINTENANCE CONSTUCTIO TECHNICALBUREAU|
A,go, 1970
IBED- 5221(2R)
MAP I
34- ISRAEL 35 LEBANON ,- $ SECONDHIGHWAY PROJECT Metull GENERALLOCATION MAP
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IBRD-3154RI JUNE 1971
MAP 2
43' I SR A EL 0 i-SYRIA SECONDHIGHWAY PROJECTAIAJ y -\ PROJECT ROADS h f r- mITiei 0 ,
Existing main roads 1 0J secondoryroads / \Misaff Amak J | X Existing . Interchangesin project| t _ 1 rt X - Roads in project 1/ z
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This .. ;, is given for qe.graphic.l orienruionl(Y/\ or,y ond no Feotv,e should be inte,preted to I , imply o poDsitionf.k.,, by th. lm-teroionol X\f R.costr-tlio,, nd De-elopm-nfor Natanya <\ ~ \t L f8onkfor * irS ffil;.tes os to -ont.esf bo-ndries. q !/t
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