PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB2469 Project Name Urban Transportation Project Region LATIN AMERICA AND CARIBBEAN

Public Disclosure Authorized Sector General transportation sector (81%);Sub-national government administration (14%);Other social services (5%) Project ID P099834 Borrower(s) Borrower: The Municipality of Cuenca (US$25 million) and the Municipality of (US$10 million) Implementing Agency Unidad Metropolitana de Transporte (UMT) Ecuador Tel: 593-7-284-1373 [email protected] Dirección Metropolitana de Transporte y Vialidad (DMT) Ecuador

Public Disclosure Authorized Tel: 593-2-2286125 [email protected] Environment Category [X] A [ ] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared July 11, 2006 Estimated Date of October 1, 2006 Appraisal Authorization Estimated Date of Board December 19, 2006 Approval

1. Key development issues and rationale for Bank involvement

Public Disclosure Authorized a. Key Development Issues

Rapid urbanization has placed a serious strain on the economic and financial resources of Ecuador’s urban centres. During the 90’s approximately 30-40 percent of the Ecuadorian population migrated both within and outside the country with now 61 percent of the country’s total population living in cities.1 Migratory flows have reflected relatively better living conditions and economic opportunities in urban areas but have also led to the largest poverty increases being in the urban areas in the Costa and the Sierra. In these areas, the poverty rate climbed by more than 80 percent between 1990 and 20012 with access to an adequate supply of developable land and reliable delivery of public services being now critical challenges for sustaining economic growth and reducing poverty. As in most of Latin America, cities in Ecuador face acute urban transport problems mainly

Public Disclosure Authorized because of the unintended consequences of sector liberalization during the 80’s that led to a high number of old units operating in mixed traffic, with inappropriate boarding and ticketing

1 Source: National Institute of Statistics and Censuses (INEC), Administrative Policy Division 2 Source: Ecuador Poverty Assessment. April 2004

- 1 - schemes. Urban transport problems affect all urban residents but it is the poor who often suffer the most. Over-supply and widespread congestion3 lead to low operation speeds that hurt the poor who have relatively long and expensive journeys to make each day. Having to take two or more buses to access jobs and social services means that low income groups are particularly vulnerable. In 1999, Quito, , and Cuenca ratified the constitutional mandate (the new Constitution was approved by Congress in June 5th 1998) to decentralize urban transport regulation. While the National Government retained the relevant legislative powers, the municipalities were made responsible for the execution of by-laws and to set regulation governing transport services and contracting. With this new authority, the cities have started overhauling the urban transport sector, however significant challenges remain with weak institutions and incomplete coverage and integration of quality public transport being fundamental challenges. Cuenca and Quito have recently requested support from the Bank to help deal with the challenges they face on urban transport generally and on public transport specifically. • Cuenca Context: Cuenca is the third largest city in Ecuador and serves as capital of the Azuay Province; with a population of 0.35 million represents 4.5 percent of the country’s total urban population. In 1999, the municipal authority created the Metropolitan Transport Unit (UMT) to consolidate the management of the local transport sector. The UMT acted to assign routes and organize the services of the local transport companies. The city ruled over schedules, service, and routes to reflect passenger demands and also implemented unified vehicle specification standards such as number of passengers, type of doors, color, and age. During the restructuring process, the seven formally constituted companies have gradually been implementing reforms and updating management procedures, resulting in some of the companies now being capable of taking on debt for the first time. Regulations passed by the newly constituted UMT and approved by the Municipal Council, also prevented new buses from entering the system. New units can now only replace older, pre-registered units which has caused the fleet’s average age to drop to 3.2 years. Despite this progress, the city needs to work further to continue with the sector modernization by rationalizing service coverage, extending the routes to peri-urban areas, and optimizing traffic flows and overall circulation by means of traffic engineering and traffic signals. The lack of dedicated infrastructure and specific regulation is also hampering the city’s ability to improve the quality of service. The original reform plan envisaged private investment in rolling stock being paired with public investment in dedicated infrastructure—corridors, stations, and terminals—that has not yet occurred and so the benefits of the fleet modernization have not been fully realized. Looking forward, with appropriate investments and reforms, Cuenca has the potential to become a valuable role model for urban transport reform of mid-size cities for both Ecuador and the broader region. This is the explicit aim of the municipal government whose current efforts on physical planning, social, and gender inclusion, will be supported by the proposed project. Being an important regional center, Cuenca is at a crucial stage where its future can be positively shaped. The city serves as the main commercial and service center (institutional, educational, and

3 Although private vehicle ownership levels are still moderate, motorization in Ecuador has grown more rapidly than peer countries in the region with private car registration growing at an annual rate of 11 percent in Quito and 6 percent in Cuenca for the last five years.

- 2 - health related) in Azuay Province and the southern highlands of Ecuador and the proposed project will address transportation linkages to the surrounding areas and so also have positive impact well beyond the city’s boundaries. • Quito Context: Quito is the country’s capital and second-largest city and lies in a mountain flanked Andean valley. With a population of about 2.0 million in the metropolitan area, growing at 2.2 percent, Quito accounts for about 19 percent of Ecuador’s population and constitutes a major regional and national economic center. Reflecting its size and economic importance, Quito’s transportation infrastructure is heavily loaded with growing passenger and freight movements. Public transportation services include municipal, inter-parish, and inter- cantonal services circulating through the city. Quito is also the major inland logistical hub for Ecuador and so, carries significant road freight that due to the mountainous geography has only limited ability to avoid major choke points in the urban area adding to congestion and pollution problems. Even before formal local responsibility for transport regulation or management was assigned, Quito developed several feasibility studies during the late 80’s that showed the need for an integrated transport system. In 1990, the city began transport-engineering studies to reorganize and modernize the transport system leading to the implementation of the Trolleybus line in 1995 and the growth of Quito’s reputation as a city with a sustainable and viable urban transport system.4 This reputation was further strengthened when two additional segregated bus rapid transit (BRT) corridors were implemented, the Ecovía in 2002, and the Central North Corridor in 2005. Today the transport system is comprised of three corridors, 35km in length, and the first 7km of a new South-East Corridor. The established corridors, however, do not fully cover the city; out of the 2.1 million daily trips generated, the system only serves 18 percent with traditional services covering the remainder. The three established corridors are neither physically nor operationally integrated and are run under distinct ownership and regulatory regimes. In the northern area of the city, the corridors run almost parallel but key works to physically integrate the stations and other pedestrian infrastructure have not occurred. Buses are typically crowded, the lack of system integration and resultant double-paying are severe limitations of the system. The distinct ownership and regulatory regimes are the legacy of corridor by corridor concessioning and construction that has not yet included quality inter-corridor connection facilities. This lack of integration severely restricts the potential effectiveness of the system and makes inter corridor transfers particularly difficult, especially for those with limited personal mobility such as children, pregnant woman, and the elderly. Quito experiences high levels of transport driven pollution with the reliance on diesel fuel, the aged bus fleet (12.5 years average age for conventional buses) and challenging topography being the significant drivers of local air pollution. In 2003 the CO2 emissions due to the transport

4 The city also established in 2003 the Transport Master Plan with the objective to set the sector policies with four pillars: (a) improve competitiveness: develop a new transport model aiming at: adequate mobility of persons and goods, environmental sustainability, discouraging the use of the private car, and a more efficient and competitive public transport system by furthering the development of the public transport industry; (b) improve governance: through the use of legal, financial and institutional instruments, consolidate the administration and management of the metropolitan public transport system; (c) improve the quality of life for Quito’s inhabitants: Implement actions which achieve; (d) strengthen cultural identity: Improve civic behavior and raise the respect for traffic rules through a permanent program of education, promotion and motivation.

- 3 - sector were around 1,900 thousand ton/year and this is expected to grow by 75 percent over the next 20 years, with private vehicle emissions accounting for an increasing share. Quito’s current institutional arrangements—atomized institutions with overlapping responsibilities and unclear mandates5—limits the city’s ability to effectively manage the system and enforce service provision by private operators. The current institutional arrangements lack clear contracting schemes and service standards as well as adequate supervision and centralized planning and control functions. Institutional weakness also precludes more sophisticated policy options such as congestion charges and license-plate schemes. For the incumbent corridor operators, the current arrangements have proven financially unsustainable as high operational costs and system inefficiencies are not covered by fare revenue. For traditional operators, bus companies have continued to function as loose affiliations of bus owners with few company assets since ownership of the buses remains with the individual associates. To achieve progress within this context, the city needs to act on multiple fronts but with an emphasis on system integration. It must expand service coverage to underserved southern areas of the city whilst also implementing measures to curb excess supply in other areas. The expansion of service will be financed by CAF with a National Loan, whilst the current project will support the physical and operational integration of the system required to maximize the value of existing and future investments and achieve a more efficient and inclusive service for vulnerable users. Specifically, Quito needs to address the absence of integrated ticketing schemes and routes that penalize users through double paying, and in some cases, unaffordable service for the poor living in peri-urban locations and provide satisfactory terminal facilities to allow efficient interchange between different types of lines (urban-urban, urban-inter-parish, and urban-inter-cantonal). Overall, physical and operational integration will be the key to achieving an operationally and financially reliable system. b. Rationale for Bank Involvement The Municipal Government of Quito (GOQ) and the Municipal Government of Cuenca (GOC) have requested World Bank financing for the integration and construction of their transport network and related civil works investments: corridors, stations, and terminals. A proposed APL loan would finance the infrastructure required for the sector modernization and operation and provide support for framing the concession and licensing rules for private operators. The project is centred on public-private cooperation since the BRT infrastructure will be publicly funded and constructed but the operation and capital equipment procurement will be the responsibility of private concerns. This involvement of the private sector resonates with the Bank’s belief that private sector competition can often improve the efficiency of procurement and service provision. The project is also important to demonstrate benefits from the historic process of decentralizing responsibility for urban transport from the national to the municipal government. This

5 DMT (Municipal Transport Directorate); UOST (Trolley-bus System Operating Unit); EMOP (Public Works Company); EMSAT (Municipal Company for Transport and Administration Services); EMDUQ (Urban Development Company); Metropolitan Police (blue zone parking); National Police (involved with the lighting system and responsible for traffic enforcement); Municipal Environment Directorate (environmental permits); CORPAIRE (circulation permits and vehicle emissions control), Life for Quito Corporation (grants the resources for the operation of CORPAIRE, the management of the metropolitan parks, and the cleaning and recovery of rivers); Metropolitan Council of Transport (inter-institutional instance); National Council of Transportation (fixes the national fare); and the operators.

- 4 - decentralization of authority has had only limited success so far and so it will be important to achieve more significant results to support the Bank’s broader decentralization agenda. In addition to providing capital, the Bank will add value to the project by advising on contracting and assisting with institutional strengthening, sector planning, and capacity building by drawing on three relevant strengths: (i) broad experience: the Bank and LAC region have extensive experience in investment and policy formulation for urban transport projects with experiences in Brazil, Chile, Mexico, and Peru of physically separating buses from worsening traffic congestion. In Colombia, the Bank is supporting the implementation in six cities of separated bus corridors following the successful TransMilenio BRT system. The project currently implemented in Lima—partly designed with support from GEF funds—includes the construction of 30km of segregated corridors. In addition, the Bank is currently administering GEF projects which aim at sustainable transport in Mexico City, Santiago, and São Paulo. Cuenca and Quito value such experience and perceive Bank involvement positively as a reinforcing force for local policies and development agendas; (ii) technical capability: the Bank can assist with valuable technical advice, training, and direct analytical support to the governments during implementation; (iii) consensus building: the Bank can play a critical role building consensus among bus operators, local stakeholders, and different institutions involved in the sector.

c. Support for CAS Objectives.

The proposed project and objectives are in line with the Country Assistance Strategy (CAS) as the project addresses some key objectives: a. Poverty alleviation. The project will address: (i) urban poverty by improving the quality of access to employment and basic services for the urban poor. Double payment due to the lack of system integration currently force poor not only to spend a significant share of their time commuting but also, to devote over 15 percent of their household expenditure to transportation.6; (ii) social and spatial inclusion by reclaiming scarce urban space being consumed by wealthy car users for public transport and NMT users and improving the coverage, speed, safety, and comfort of these modes whose users are generally lower income. In Cuenca, routes and transport services will be designed to guarantee accessibility and ensure a reliable service for the poor living in peri-urban area. In both cities the project will enhance traffic safety through educational campaigns and the physical characteristics of the areas surrounding the corridors. b. Increased fiscal stability. Improving public transport will reduce congestion, pollution, operating costs and travel times. Such improvements will contribute to fiscal stability on both the revenue and expenditure side. On the revenue side, reduced congestion, travel times and operating costs will enhance economic growth through improving labour and capital productivity. The value of the improved transportation system will also be capitalized in the main corridors by broadening the taxation base of such property. On the expenditure side, the project benefits will reduce the long term subsidies needed to support transport services and limit the public health costs of pollution.

6 Between 1999 and 2003, the cost of transportation and utilities grew by more than thirty percent

- 5 - c. Strengthening governance. By providing assistance in overall transport planning, financial management, regulation, service operation and in dealing with the city’s transport operators, the project will help develop badly needed policies and skills to govern the transport sector at the sub-national level over the long term. Moreover, to increase social inclusion and popular support, the project includes for both cities capacity-enhancement programs in planning, control and monitoring, and consensus building among stakeholders. The project will implement a system to monitor, evaluate and publicize service standards making it accountable to civil society.

d. Evidence of the borrower’s commitment.

There is strong commitment and interest of the GOC and GOQ to support the development of the project; both governments have identified transport as a priority issue, and are at points in the political cycle where they are keen to achieve results. Both governments have already invested significant resources and allocated specific technical and human resources for the conceptual, overall planning, and institutional arrangements required. Cuenca: With technical and financial assistance from UNDP, Cuenca is currently updating a 1998 IADB financed Integrated Transport System (ITS) plan. The ITS will provide a high quality transport service on the main urban thoroughfares of the city, connecting key residential sectors of the municipality without the need to pass thorough the city centre. The ITS is comprised of two stages. Stage I includes the installation of two integrated terminals, one direct trunk route connecting both terminals, and a circular trunk route around the down town area linking the two terminals. The first phase also includes the set-up of two types of feeder routes: one serving the terminals and their surrounding areas and the other serving the rural parishes. Stage II will include the installation of two additional integrated terminals, the construction of two more trunk corridors and the construction of a second circular corridor further away from the Historical Centre. Stage II will also realign feeder routes services into four groups, with each group serving each of the four terminals. UMT officials have recently traveled to Bogota, Medellin, and Curitiba, to examine the nuts and bolts of their BRT systems. Cuenca is currently preparing the studies to tender the new lighting and signaling system. Quito: Quito has a demonstrated commitment to significant investment in public transport traceable back to the original Trolleybus investment of 1995 but reaffirmed in the Transportation Master Plan of 2003 which broadly captures the current proposal. Most recently, the city produced in February 2006 a detailed plan ‘Sustainable Transport System for the South-STSS’ for implementing expanded BRT service in the South recognizing the need to finance system integration and the northern and southern terminals. More generally, Quito has demonstrated its commitment to competitive tendering for transport services following a successful experience in contracting and constructing a new sightseeing chairlift system in record time. The Mayor has since commissioned EMDUQ (Municipal Company for Urban Development) to call for proposals for the integrated ticketing scheme, proposed light rail system (TRAQ), and other parking facilities. Although there are currently significant institutional issues with such contracting, it does demonstrate the city’s commitment to competitive private sector provision. The city is also currently preparing a GEF project with the UNDP for bikeways and NMT, further demonstrating its commitment to these modes as part of the urban transport future of the city. The city had managed to secure funding for the STSS trough a CAF loan to the National

- 6 - Government of around US$50 million, thereby making the investments in infrastructure integration and upgrading highly desirable and timely.

2. Proposed objective(s)

The main development objective of this project is to improve accessibility to and affordability of quality public transport in Ecuador and specifically for residents of Cuenca and Quito and thereby reduce poverty and improve the cities’ competitiveness and economic growth. The project will give priority to mass transit and NMT with a focus on road safety and network integration. Mass transit upgrades will benefit primarily low-income residents and persons with physical disabilities. In Quito the project will primarily benefit 1.4 million daily users of the public transport system, especially the low-income population that heavily relies on public transportation. In Cuenca, in addition to the urban population, the project will benefit 0.11 million residents living in the rural parishes surrounding the city. The alleviation of traffic congestion problems (either existing for Quito or approaching for Cuenca) and fleet renewal will reduce the environmental impacts of the transportation system, particularly air pollution. These objectives would be achieved by: (i) supporting the development and implementation of strategies at the city level to strengthen transport sector management and operation capabilities; (ii) establishing a reliable and sustainable operations centre for the integrated transport system to improve the overall quality of the service; (iii) defining a city land-use strategy that includes higher-density cost effective development in the vicinities of public transit facilities (stations, corridors, and terminals) and exploring policies such as taxes, rent control, overly restrictive zoning and development regulations; (iv) increasing public transport service coverage and reliability especially in poor and peri-urban areas of the cities.

3. Preliminary description

The proposed project is organized around four central components: improve connectivity and mass transit, improve general traffic circulation and safety, improve NMT, and strengthen urban transport institutions. The mechanism proposed for delivering on these components is a two phase APL: a US$35M APL1, included in the base case for FY07 with two Loan Agreements— one for each city—with national government guarantees, and a APL2 with a total amount that will be defined during project implementation and will be presented to the Board in FY09, subject to compliance with appropriate program triggers and CAS conditions. In Cuenca, APL1 intends to finance the Stage I of the ITS with: two integrated terminals; one direct trunk route connecting both terminals; a circular trunk route around the down town area linking the two terminals and feeder routes; and investment in the integrated traffic signalling system. In Quito, APL1 will finance improvements to the existing system, thorough a combination of physical investments and technical assistance to: modernize the system of operational controls; achieve system integration on the existing lines and between the metropolitan, inter parish and inter cantonal lines; and strengthen institutional control through improved municipal technical and managerial capacity. Potential synergies between activities in the two cities will be exploited wherever possible. Following are the components, preliminary identified costs, and their sequencing in the proposed APL program.

- 7 - Cuenca Quito Component 1 Construct transport infrastructure in Achieve integration of the BRT Improve connectivity and Cuenca such as segregated lanes, network and other services of the mass transit through stations, and terminals to improve metropolitan area of Quito by busway-based investments accessibility, reduce travel time and financing the works required to operational costs, and improve air integrate the system such as the quality. A “closed system” will allow integration terminals in Quitumbe, interchange between trunk buses and and network connectivity between the feeders routes with the payment of a Northern and the Ecovía corridors in single fare. the La Y and Ofelia stations, and other access works in the Marín-Los Chillos station. A “closed system” will allow interchange between trunk buses and feeders routes with the payment of a single fare.

US$ 28.00 million US$ 21.00 million US$ 7.00 million Component 2 Assign priority for pedestrians, design and implement traffic safety educational Improve general traffic campaigns and develop a comprehensive traffic circulation plan. circulation and safety This component will also finance the through planning and traffic signaling system for the city. campaigns US$ 6.50 million US$ 6.00 million US$ 0.50 million Component 3 (i) Help design and contribute to the implementation of a bikeway network in the Improve NMT by improving cities as both a feeder for the corridors and as an independent mode; (ii) the conditions for NMT Establish a safe, convenient, and efficient automobile, bicycle and pedestrian circulation Traffic Circulation Plan for the Historical Centre.

US$ 1.75 million US$ 1.50 million US$ 0.25 million Component 4 Develop a long-term strategy for sustainable transport development: efficient Strengthen urban transport network design, bus priority measures and effective traffic engineering. institutions by supporting the Strengthen, by means of PPIAF support, the municipal capacity for regulating development of policy and private transport service providers and increase service quality thorough more institutional framework for competitive licensing and awarding processes to private operators. A transparent, managing, coordinating, reliable, and stable regulatory framework will generate valuable new private planning and monitoring investments in the fleet, the ticketing system, and in the bus terminals. urban transport services. Design and support the implementation of specific policy, regulatory and institutional reforms needed to establish an Operative Management Unit for the BRT corridors and other transit modes. The unit will handle the corridors’ operation and oversee daily revenue collecting.

- 8 - Strengthen the planning, operation and • Carry out an origin-destination license awarding of the city’s transport survey for the entire city and develop a sector. coherent travel forecasting model. • Design a Freight Transport Management System for the Metropolitan District of Quito and its area of influence, with precise information on traffic and route structures, cargo types, freight volumes and destinations, licensing of cargo vehicles (both heavy and light– weight) and a comprehensive management system for regulation and operation. This component will also finance feasibility studies, project designs and other strategic activities for APL2. In Cuenca the project will finance the SIT II phase studies and in Quito the studies for the Valle de los Chillos and Quito-Tumbaco- Quinche corridors. US$ 6.50 million US$ 1.50 million US$ 5.00 million TOTAL US$ 42.75 million US$ 30.00 million US$ 12.75 million

4. Safeguard policies that might apply

Environmental Assessment (OP/BP 4.01) Despite the fact that the social-environmental impacts are not significant, the works may indeed effect the natural environment or the communities located in the influence areas of the works. Therefore, adequate management of the social-environmental aspects will be required, especially during execution of the works. This will require complying with both national environmental legislation as well as the requirements of the Bank to assure environmental and social sustainability of the project overall.

Cultural Property (OPN 11.03) Cuenca and Quito are listed as World Heritage Sites by UNESCO and therefore it is clear that the project will occur in urban areas of high historic value. Although it is not expected that works will directly impact any historic monument, it is recommended to activate this policy as a precautionary measure to have procedures well established in case works during construction do involve cultural property, especially in the case of fortuitous discoveries.

Involuntary Resettlement (OP/BP 4.12) Dwellings are not expected to be affected by the project in general, however specific works could have this kind of impact. It is therefore recommended to activate this policy as a preventative measure so that policies are in place to cope with such cases.

Ecuador has been enhancing its environmental management through the implementation of the Unified Environmental Management System (Sistema Unico de Manejo Ambiental - SUMA). The implementation of this system has not only provided the necessary procedures and instruments for environmental management but has also driven a decentralization process of the functions of the central environmental authority (which resides in the Ministry of the Environment) to the regional environmental authorities.

- 9 - In this way, after complying with a series of institutional environment capacity requirements, the Environmental Management Commissions (Comisión de Gestión Ambiental - CGA) of Cuenca and Quito were granted authority for environmental licensing in their jurisdictions. This in itself gives indication of local capacity in socio-environmental management which will further improve through developing institutional and management frameworks to comply with the safeguard requirements of the Bank.

In 2002 the Municipal Government of Quito established the PMTS (Master Plan for Sustainable Transport) based on a long–term policy from the local government, to develop a sustainable transport system that is operationally efficient, socially supportive and environmentally responsible. This effort is supplemented by a broad environmental enhancement program based on the Environmental Management Master Plan and the development of programs and specific project activities for emissions control and air quality monitoring, presented in the Plan for the Air Quality Improvement of the Municipal District of Quito 2005 – 2010.

In this context, one of the main components of the municipal policy for urban mobility is the reduction of air pollution caused by road transport and motor vehicle operation. The activities are focused on specific areas, such as the reduction of the vehicle-kilometer traveled (VKT), prioritizing mass transportation over private vehicles; and the reduction of emissions per vehicle/km thorough fleet modernization and better fuel quality. The effective emissions reduction strategies can be summarized as follows:

• To continue with the conventional public transport service revamping—heavily characterized by individualized and competitive ownership of units—with a more rational and integrated system. The Metrobus-Q scheme aims to develop a transport system that is secure, affordable and sustainable based on high-capacity fuel-efficient units running on segregated busways. • Identifying policy and regulatory issues for the integration of low-emission vehicles and new technologies. Adjustments to the regulatory framework have been also implemented incorporating retrofit and mandatory vehicle inspection and maintenance programs for the existing units. • Supporting the participation of private operators in the development of public transport projects • The incorporation of NMT (bicycles, pedestrians) into the city’s transport planning

Cuenca has established Cuencaire a municipal body responsible for monitoring air quality in the city and is currently investing in air quality monitoring equipment. The implementation of Cuenca’s integrated transport plan will be central to improving air quality in Cuenca through both improving the emissions profile of the public transport fleet through new vehicles and also by improving the operating conditions and therefore, reduce overall emissions.

The project will also include road safety improvement strategies and interventions focused on road crash victims (injuries and fatalities). The project team has been working closely with technical authorities and the Police in the cities, defining the first guidelines for a road safety

- 10 - campaign and strategy. Road crash victim data gathering, analysis, and rationale capabilities will be developed as part of the institutional capacity strengthening.

Following the local social and environmental procedures—well aligned with Bank’s policies and priorities—the municipalities have engaged in consultations with stakeholders to define social participation addressing other potential issues. Since the project will increase public transport service coverage and reliability especially in poor and peri-urban areas of the cities, project preparation will include wide local participation at the community level.

5. Tentative financing Source: ($m.) BORROWERS 7.75 INTERNATIONAL BANK FOR RECONSTRUCTION AND 35 DEVELOPMENT Total 42.75

6. Contact point Contact: Jose A. Barbero Title: Sr Transport. Spec. Tel: (202) 458-2124 Fax: Email: [email protected]

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