T.O.- l0b RESTRICTED RETURN TO REPORT

This report is restricted to use within the Bank.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Public Disclosure Authorized

APPRAISAL OF REVISED

HIGHWAYPROJECT

Public Disclosure Authorized in

COLOMBIA

September 2, 1953 Public Disclosure Authorized

Technical Operations Department EXCHANGE RATE

One U.S. dollar : Z. 5 Colouibiaa Peso* One Colombion Peso - U.S. $0.40 TABLE OF CONTENTS

Page

Sumnary and Conclusions

I. Darpose and Scope of this Report 1

II. The Present Situaticn 1

III. Descriptionof the Revised ConstructionFro4ect 3

IV. Troposed 1KaintenancePro'ram 5

V. Suniraryvof the Total Fund Requirements 7

VI. Justificationof' the Project 8

VII. Reconrmendations 9

Appendices. APPRAISAL OF REVISED H?IGHT..AYI;ROJECT - COLOLIBIA

Summary and Conclusions

The Government of Colombia in 1951 began a three-year emergency construction project for rehabilitating about 3,061 kilometers of the countryts principal highways. On April 10, 1951, the Bank made a loan of 416.5 million to Colombia for this purpose. This was the first step in a larger highway program recommended by the Colombian Economic Development Committee.

The urgent need for improved roads did not permit making surveys, plans, detailed estimates and construction schedules before beginning work. Experience has shown that both the time required for completing the project and necessary equipment were substantially underestimated. Therefore, additional equipment should be provided in order to complete the project to adequate standards, and to cut down the time required for completion. Addi- tional foreign exchange of about S7.L4 million would be needed for this purpose and for related costs.

In June 1952 the Bank agreed to increase the percentage of paved roads in the project from 155 to 50%. The higher dollar requirement of .>860,000for this change was transferred from the contingency item in the List of Goods. Further experience has shown that it would be desirable that the percentage of roads to be paved should be further increased to about 82 g and that some new roads should be added to the project. This additional work will require about .3.57million in foreign exchange.

These above changes would increase the original foreign exchange estimates of the project by 410.71 million (from 46.5 million to "27.21 million) v;ith a corresponding increase in local currency requirements of about 67 million pesos.

It has been increasinglyevident that there must be a drastic reorganization of Colombiats highway maintenance facilities and practices. To implement this reorganization,it is proposed that any additional high- way loan include an amount to provide additional road maintenance equipment, shops, shop equipment and, for an initial period of at least tlTo years, trained and experiencedoutside engineers. The amount of foreign exchange required lor this purpose wrould be .,jl0.l million, of iwWhichthe Bank is asked to provide 2.1J1million in the proposed loan,

The above foreign exchange estimates, with the addition of an amount for contingencies, would total 421.35 million, of wjhich '4.35 million is nowv requested by Colombia as a supplementary highasy loan.

The project is sound and it is recommended that the Bank favorably consider an additional highvray loan to Colombia in the amount of "lh4.35 million. This loan would have a term of 10 years ';ith a grace period of two years on amortization payments. A?PLATSj1 OF REVrSED HIGHWAY PROJECT - COLC131A

I. Purpose and Scope of this Report

1. The Goverrment of Colombia has requested a supplementaryloan of J1I.35milion for the followingpurposes:

(a) to complete the uroject financed by Loan i3 CO to adequate standards;

(b) to provide additional equipment to accelerate cornstruction, to add new roads, and to increase the percentage of roads to be paved;

(c) to establish a comprehensivemaintenance program for the entire nati'onalhighaay system.

2. The proceeds of the supplementaryloan vrouldbe used to purchase additional constructionequipmr.ent and materials, to meet increased administra- tive costs and contractors,fees and maintenance and shop equipment, and to empioyforeign personnel todirect the planning of the maintenanceprogram and to assist in carrying it out.

3. T"hepurpose of this report (wrhichsupplements the previous technical report of lMarch20, 1951)is to appraise the proposals of the Colombian Goverrment.

II. The Present Situation

4. The original loan, made April 10, 1951 in the amount of y0l6.5million, was for the purpose of enabling the Government of Colombia to proceed .;ritha three-year emergency project for the rehabilitationof Colornbia'sprincipal highigays,as the first step in a larger program recommendedby the Colombian Economic Committee.

The total cost of the project was originallyestimated to be 103.6 million pesos, of -which70.6 million pesos (includinga contingencyallowance) was to be in local currency. The project consisted of:

(a) the construction of arproximately 155 kilometers of nevw high- w-ays to provide connecting links in the trunk highwnay system;

(b) the actual reconstructionand rehabilitationof about 2,834 kilometers of existing trunk highways; and

(c) the establishmentand maintenance of repair shops for ser- vicing the constructionequipment to be purchased with the proceeds of the loan and for training Colombian personnel in the repair and use of the equipment and in the function of highw.ay maintenance.

1/ The original project included, by designation,an additional 72 Km of roads which did not require construction,reconstruction or rehabilitation. (See Table II, index). -2-

6. The urgent need to provide improved highway service did not allow time, before initiatingwork, to make detailed surveys and prepare plans, speci.ficationsand constructionschedules for the project. The general speci- fications agreed upon required the construction of roads of good standards and fitted to Colombian needs. Provision was made for carrying on final surveys, preparing plans and revising cost estinates as work progressed. The initial cost estimates wvere based on the best available information and, with the inclusion of a 15% contingency allowance, were considered sufficiently reali- istic. The Bank therefore proceeded wvith the Loan in the expectation that the semi-annual revisions of the estimates which the contractors were required to make would provide progressively better cost estimates as construction advanced. To provide the peso requirementsfor the project, the Colombian Government agreed to appropriate23.5 million pesos each year for three years beginning in 1951, Five (now reduced to four) foreigncontractors have been carrying out the project, including the training of Colombians in the operation and maintenance of the equipment.

7. In June 1952, the Colombian Government requestedand the Bank agreed, that the Loan Igreement be amended to increase the amount of paving from 15% to 50% of the total roads in the proiect. Such an increase was considered technicallydesirable. As a result of this change, and a change in the exchange rate from 1.95 to 2.50 pesos per dollar, the total cost of the project expressed in pesop increased from 103.6 million pesos to 142.8 million pesos. The local currency requirementsincreased by 31 million pesos from 70.6 million to 101.5 million which the Government agreed to appropriate. The higher dollar requirementsof :G6o,ooo for the additionalwork were obtained from the contingency item in the List of Goods.

8. Soon after the original loan was signed, the Bank employed and stationed in Colombia a resident highway engineering consultant. The original Consultant,and his successor,have advised and otherwise assisted the 11inistryof Public '$orksand the contractorsin carrying out the project and have reported to the Bank on the progress of the vrork. Early this year the Consultant reported that the contractorswere running into unexpected diffi- culties. These resulted from difficult terrain and the lack of sufficient heavy equipment to meet the problems encountered, particularly in slide removal. The consultant advised the Bank that, if the entire project mss to be completed, the contractors would either have to make a drastic reduction in engineeringstandards or obtain a substantialincrease in dollar and peso funds. He therefore recornmendedthat the Bank consider a supplementalloan for the purchase of the necessary additional equipment. The Iiiinistryof Public lorks had also requested that the percentage of highwvaysto be paved be increased from 50 to about 80.

9. In April conferenceswere held in Colombia with the then Iiinisterof Public li;orks and with the contractors. It vrasclear that additional equipment was needed and that the requested increase in paving would add greatly to the value and life of the roads. In addition, the M.linister agreed that a compre- hensive program for maintenance of the national highwvaysystem of Colombia should be adopted. Shortly after these conferences,a new Government came into power, including a new IMlinister of Public ' 4orks. This caused delay and necessitated additional conferences in Bogota. Considerable additional -3- exper-ence wisasthen available particularlyin paving, and the loss of a dry season since the first conferencesnecessitated a review of equipment needs. A new study was therefore made of constructionstandards, additional equip- ment reeded to meet those standards, and the amount and types of paving best suited to the roads and the traffic. The project wvasthen revised to reflect the results of the study and to incorporatemutually acceptable revisions proposed by the new Minister of .'ublicl,orks who indicated full accord with the project as revised.

10. Taking into account the difficultieswhich have been encountered, progress of work on the project has been satisfactory. As of J-uly1, 1953, grading work had been completed on 0o%of the roads in the original project. Although this is somewhat behind the original schedulq the work completed in terms of Quantities of earth moved and materials used has been much greater than the original estimates. ill All wYork,including paving, has been completed on 224 km of roads. In addition, the full base has been completed on 835 lkmand grading has been completed on a further 356 km. In addition to their construction work, the contractorsare maintaining2,887 hm of tne roads in the original project. 12. Twopermanent repair shops, located at Bogotaand Bucaraznga ;4ave been completed and are teing utilized for the maintenance of construction equipment,

III. Description of tne Revised ConstructionProject

13. Estimates have been prepared by the contractors,reviewedby Banm representatives and approved by the l.inistry of Public Uorks for the revised proiect. The estimate5 provide for additional conotruction equipment and materials and an increase in the roads to be paved to about 82-% of the total mileage, and are based or more realistic calc-lationsof the amounts necessarxyto meet required engineering standards. The total estimated cost of the revised project for constructionwork exclusive of contingencies,is 236.6 million pesos, of which the foreign exchange costs would be :.27.2millicn (68 million pesos) and llocalcurrency costs 168.6 million pesos (see Table I).

14. Of the increased expendituresto carry out the revised project, about 27.1 million and 38.7 million pesos are required to complete the original project to satisfactorystandards, and to prepare the base for paving. The cost of inc;easingthe paving from 50 i to 822-, and for the new roads added to the project is about i3-6imillion and 28.4 million pesos. The two amounts comprise the 2;l0.7million and 67.1 million pesos, the estimated additional required f=zds for the proiect. Thlese amounts are exclusive of contingencies,and without regard to the salvage value of the additional equipment. -4-

15, It was originally estimated that the projectcould be completedby mid-1954,but due to delaysin equipmentdeliveries, frequent mountain slides,the addedtime neededto pave more of the roads,and delayscaused by the recentchange in Government,the revisedproject, except for the Thnja - Barbosaroad, is nowgscheduled for completionby the end of 1955. Extensionof the constructionperiod to about the end of 1956 would reduce expendituresfor additionalequipment by aboutQL million. However,addi- tionalcontractors' fees and administrativecosts payablein dollarswvould be about92 million, The salvagevalue of the additionalequipment at the end of the projectwould be about Q2.0 million. The shorterconstruction periodtherefore represents no additionalcost and providesfor the com- pletionof these importanthighways at a much earlierdate.

16. The revisedDroject will requireabout 70,000tons of liquidand solid asphalt. About 29,000tons of road asphaltis producedin Colombia annuallybut requirementsoutside the projectfor local streetconstruction and maintenancetotal about 21,000tons annuallvy,leaving a net balanceof 8,000 tons. However,many of the roads in the projectare favorably locatedwith referenceto the sourcesof local asphaltand it is logical thatthese should be suppl'ed Promlocal production. The lengthenedonfl- structionperiod may make possiblea greater4 use of local asphaltthan was i originallycontemplated. Furthermore, some of the importedasphalt can be paid forwqith pesos. In addition, some of the asphalt currently used is being paid for 1withdollars acquired wvith pesos. For these reasons,and because of the size of the proposedloanj and because the borrower is wvillingto assure the conversion of pesos to the necessaryforeign exchange for asphalt purchases, out of a total estimated cost of asphalt of the equivalent of h.4 million, all but 9864,0o0 is included as peso costs.

17. The revised project includes approximately3,151 km of roads, an increase of 162 km over the original project of roads to be constructed or reconstructed. Of these 2,599 km, or 822P will be paved. Attached as Table II is a list of the roads in the proJect showing types of paving proposed. -5-

IV. Proposed MJaintenanceProgram

18. From the outset of its participationin the Colombian highwvay project, the Bank has been concerned about the inferior quality of highway maintenanace.Provisions were made in the original loan for setting up main- tenance shops and for the training of Colombian personnel in the use, servicing and repair of equipment. But it is increasinglyapparent that these neasures snould be supplementedby a major reorganization w-rithinthe Miinistryof Public liorksto set up an effectivemaintenance organization and program to assure that the new Bank-financedhighways, once built, will not be allowed to detieriorate.The l;1inistryrecognizes the inadequacy of its maintenance organizationand of its current maintenance expendituresto care for the highlwaysas they are placed in service.

19. Discussionswith the ;Iinisterof Public aorks and his staff have led to the preparation of a long-range comprehensiveprogram for maintenance of national highways in Colombia. The program would provide that roads once constructedor reconstructedwould be kept in first class conditionby constant routine maintenance. It would require that the road ?unds budgeted annuallybe adequatefor the maintenanceof all such roads,and an adequate proportion of the budgetbe exclusivelyreserved for such purposes. The pro- gram providesfor a completereorganization of the maintenancesection in the 1.1inistry of Public Works, an adequate perrmanent staff, and for an initial period of au least two years, an experienced provisionaldirector of main- tenanceand eight additionalengineering consultants from abroad. The program providesfor the establishmentin the M.1inistryof Publicviorks of a Department of Highways to have overall responsibility for highway planning, construction and maintenance. The program also provides for setting up a modern Department of Highwaysand engaginga foreignAdvisor on Highwayswiho would adviseand assistthe ColombianDirector of Highwaysfor a minimumperiod of two years in organizingand operatingthe Departmentof Highways. 20. At present,funds for maintenanceare combinedin a budgetitem with funds for reconstruction,together amounting to approximately19 million pesos in 1953. A disproportionateshare of this amountis being used for such purposesas the reconstructionof unimprovedroads, the removalof slides,bridge repairs, and the constructionof new roads or the improvement -ofroads for accessof militarypersonnel to remoteareas* Under the plan proposedin the iaaintenanceprogram, the budgetwould includean amount exclusivelyfor routinemaintenance of the serviceableroads, which would be based on the mileageof all such roads to be maintained,and wvouldthus assure,so far as possible,the availabilityof adequatefunds to preserve the country?sinvestment in its roads. The amountcalculated to be necessary for maintenancein 1954 is 23.6 millionpesos, and by 1957, it is estimated that the annualamount required, including equipment replacements, will level off at about 36.5million pesos.

21. It is estimated in the programfor maintenance that foreignexchange in the amount of o$10.1million will be required. These funds would be used for: (a) purchase of additional maintenance equipment and parts; -6-

(b) purchase of additional shop equipment; and

(c) payment of foreign personnel during the initial two years of the program.

The Bank will be asked to provide $3.1 million of foreign exchange needed to start the program; the remaining 4$7million required in 1954 plus the Local currency requirements will be provided from budget appropriations to the Ministry of Public -iorks. The division between what the Bank and the Ministry is expected to provide is as follows:

IBRD Miinistry Item Dollars Pesos

Shops Shop buildings, including contingencies 3,210,000 Shop equipment 525,000 Spare parts 50,000 Freight and insurance 290,000

Maintenance equipment Equipment and spare parts 2,200,000 17,500000 (1) Freightand insurance 4,000,000

Highway Scales 80,000 200,000

Personnel Foreign staff 245,000 300,000

TOTAL 3,100,000 25,500,000

22. The peso cost of shop construction and of freight and insurance on Bank financed equipment is included in the estimate of maintenance cost for 1954 and will be included in the national budget for that year. Similarly, the nationalbudgets for 1954, 1955 and 1956 will includeprovision of pesos for the additionalequipment, spare parts, and freight and insurance required to meet the expenditure schedulesestablished in the maintenance program,

23. There is serious need in Colombia for the adoption and enforcement of weight limitation regulations on vehicles using the Orlombian highways. Overloadingis prevalent particularlyon trucks of lo.^ercapacities and many commercialhaulers are carrying gross loads far in excess of the capacity of / roads and bridges. Regulation measures are provided for in the maintenance program and funds are earmarked for the purchase of highway scales.

(1) Budget appropriationin pesos to be converted to 07 million for purchase of maintenanceequipment ($6.1 million) and spare parts ($900,000). The Colombian authoritieshave agreed to this conversion, V. Summary of the Total Fund Requirements

Estimaterl Addit-Ional Funds Reauired ForeignExchange Local TotalCost millions Peso expressed Peso Cost in pesos $ Eauivalent 1illions miIl.ions

Revisedconstruction cost estimates 27.21 68.02 168.59 236.61

Presentloan funds and peso appropriations 16.50 L4.25 101.50 142.75

Ad,ditionalconstruction funds required 10.71 26.77 67.09 93.86

`undsrequired for maintenance program 3.10 7.75 25.50 (1) 33.25

Contingencies on construction items and equirment5% 0.54 1.35 _3.35 4.70

lotal new funds required 14.35 35.87 95.94 131.81

24. - The allowance for contingencies of 5% on road construction costs in the estimate is less than that usually provided in projects of this nature. The low contingency amount is justifiedby the fact that the estimates for equlpment,both in quantityand in price,in themselves,contain a contin- gency. An unallocatedbalance of approxiraatelyp221,000 remains in the original project and the 550contingency is thus increasedby that amount. Furthermaore,the constructionestimates are based on actualcost eXperience and are consideredto be conservative.The contingencyas included,therefore, would provl-ide an overall margin against an overrun of the funds available for any part of the constriantionproject. 25. It is proposedthat 114.35million of the additionalforeign exchange costswovld be providedby a su-plementaryloan. The remainingforeign exchangecosts and the additionalpeso requirementswould be made available throughsupplementary allocations to the budgetfor this projectin 1953, and by budget allocationsin 1954 and 1955.

26. Expenditureson the five major constructioncontracts for the project to June 30, 1953 amountedto about$12.7 millionand 52.8 millionpesos. The scheduleof ex-ectedexpenditures, excluding the cost of maintenanceopera- tions,for the rerainJerof the constructionperiod is estimatedas follows:

(1) Representsforeign exchange and peso costs of new maintenanceequipment, shops and shop equipmentto be borne by the lainistryof PublicWorks but does not includecost of maintenanceoperations. Phased ConstructionExpenditures for Completing Bank Financed ighwa-vyConstruction

Dollar Expenditutres Peso Expenditures Year millions millions

1953 from July 1 7.26 29.C6 1954 4.96 54.74 1955 2.32 25.82 1956 0.01 4_01

Totals 14.55 113.63

27. Table III gives the annual.Colombian peso budget for highways by amounts for (1) original appropriationfor the project financed by the Bank, (2) supplenent to increase the pavIng in the Bank project to 50% of the roads, (3) the proposed expanded constructionprogram, providing funds for completing the Bank project and increasing the paving to 82-Q$of the roads, (4) mainte- nance, shops, equi-pmentand operations, (5) constructJ.onoutside the roads included in the project financed by the Bank, and (6) supervisionand suirveys for the perioA 1951 - 1956.

VI. Justificationof the Prolect

28. The accompanyinggraph shows the growth of motor vehicle registration in Colombia in the period 1942 to 1951 inclusive. This graph indicatesan increasing trend in trucks using Colombian highways of about 15% per year, and also that trucks in 1951 comprisedabout 39% of the total motor vehicles. Iraffic counts in sectors included in the project where traffic is primarily of a corn..ercialnature reveal that automobilesrepresent 22% of the traffic, busses about 13% and trucks about 65%.

29. The present coTnmercialrate for freight hauling by truck, wihileit varies widely from location to location,is approximately0.15 pesos per ton kilometer (equiivalentto about 6{ per ton kilometer) where the typical haul is between 100 and 150 kilometers and where the retail price of gasoline is 0.57 pesos. Experi'enceof the Public Works Department in Colombia has shown that transportationof highway materials for distances of from 10 to 30 kilometers costs 0.27 pesos per ton kilometer on highways in poor condition,and 0.23 pesos on paved highways. Since the cost of the vehicle itself and its repair constitute important elemerAs of cost in such transportation,it is expected that improvementsin aligiraentand paving will contribute d.irectlyto a reduc- tion in these costs also by extending the useful life of the vehicles.

30. Even though there are insuffficientdata to provide accurate forecast- ing of benefits to be expected from the present highway project, it should be expected.to decrease the cost of vehic'leoperation. If this saving were estimated at only 0.04 pesos per ton-kilometerper year, whlch is in line with experience in other countries under comparable conditions,it would represent a saving of 8 million pesos per year for the 200 million ton kilometers esti- mated as the total tonnage to be transportedover the 3,000 kilometers in the project. Furthermore,it could be considered that the paving of these roads would cut.the depreciationcosts of trucks hy 0.02 pesos. Such a reduction, aprlied to the 82g% of paved roads in the project, would representan ad.ditionaW saving to truck owners of 3.2 rmillionpesos per year. These savings are in addit,on to the substantialreduction in road maintenancecosts which will result from paving.

31. By placing in service a network of national highways, such as thiat included in the project, and as a consequenceof the expanded national trans- port, the tax revenues from gasoline have already increased greatly and this trend mav be expected to continue. These revenues are at present just about sufficientto pay the annual anticipated expendituresof the Government for ordinary maintenancepurposes. The present tax on gasoline in Colombia is 0.O8 pesos per U.S. gallon, the retail price ranging between 0.45 and 0.67 pesos per gallon. The gasolinetax yields have been as follows:

Gasoline Tax Revenues First 6 months 1951 1952 of 1953

Gasoline tax (imillionsof pesos) 3.3 12.6 8.0

VII. Recormendations

32. The revised road constructionand maintenanceproject proposed by the Colombian Government is sound. It is recolmmenadedthat a supplementaryloan be consi.3eredfor completionof this project in the amount of $14.35 million, having a term of 10 years with a grace teriod of 2 years.

33. Further Dank particirationin this project should be conditionedupon agreernent of the Government to adopt a comprehensive maintenance programlfor the Colombian ITahtionalhighways satisfactoryto the Bank, and to provide suffi- cient money to carry it out, including the adoption and enforcementof weight limiiitationregulations, satisfactory to the Bark, for Colombian highways.

34. It is recommendedthat the pre3ent arrangement Qf having a resident highway engineer represent the Bank in Colornbiafor this special project be continued until constructionis completed.

August 28, 1953 APPENDIX TAB1LEI

_STUMATEDCONSTRUJCTION COSTS OF PROJECT -000omittedl)

iBRD LOAN - DOL1AR COSTS Local Total Cost E

-______Ecated Parts Mate rialstration Fees Loan (nesos) pesos)

I. Original Project (includes . ' . pavin- 15% of mileage) 1,211 8,302 1,872 3,237 1,878 16,500 70,600 103,600

II. Project as previously amended to include increase in paving 221 9,329 1, 815 3,251 1,884 16,500 101,500 142,750 from 15% to 50%

III. Additional cost of completing original project (50% paving), improving standards of con- struction, increasing pavement from 50% to 82-1/2%p and of 0 5,927 1,534 1,889 1,359 10,709 67,087 93,859 additional roads

IV. Estimated total cost of revised project (includes additional cost of original Project, (82-1/2% paving and additional 221 15,256 3,349 5,140 3,243 27,209 168,587 236,609 roads) (II plus III)

I/ Estimate does not include funds for the maintenaniceprogram or any addition for contingencies. TABLE II

ROADSITOT UDED IT PROJECT

A. Roads included in the project on which pavinp will be corstructed

Length Paving Paving Kilo- Type of Width Thickness _ rcrq To meters Surfacing Ieter Trnhes

Tun-Ja Barbosa 75 Surface treatment 6.1 3/4 Parbosa Guespa 12 Surface treatment 6.1 3/4 Oiba Socorro 32 Surface treatment 6.1 3/4 Socorro San Gil 26 Seal Coat 6.0 Seal San Gil Piedecuesta 87 Surface treatment 6.1 3/4 Piedecuesta Bucaramanga 22 Seal Coat 6.0 Seal Buoaramanga Parplona 130 Surface treatment 6.1 3/4 Parnpiona Cucuta 75 PneAraHtlon 6.1 2 Cucuta Venezuelaborder 16 Seal Coat 6.0 Seal Cucuta By - pass 5 Penetration 6.1 2 ibague Girardot 78 Road mix 7.0 2 Girardot ArbelaezJct. 63 Penetration 7.0 2 ArbelaezJct. Fusagasuga 6 Penetration 7.0 2 Fusagasuga Soachaby-pass 44 Seal Coat 6.0 Seal Soachaby-pass 6 Not mix 7.0 22 Soachaby-pass Bogota 10 Seal Coat 7.0 Seal Facatativa Los Alpes 12 Seal Coat 7.0 Seal Los Alpes Sasaira 31 Surfacetreatment 6.1 3/4 Sasaira Km. 84 5 Penetration 7.0 2 lm.8,4 Villeta 4 Surfacetreatment 6.1 3/4 Villeta Honda 72 Surfacetreatment 6.1 3/4 Hoonda La Dorada 35 Penetration 7.0 2 Murillo Calarca 90 Penetration 6.4 2-2 Armenia Ibague 96 Peretration 6.7 avg. 21 Cartago Pereira 27 Penetration 6.3 arg. 2 Pereira(Km-. 4) ianizales 53 Penetration 6.2 2-4avg. ianizales(Km. 8) Km. 37 29 Surfacetreatment 6.2 3/4 Km. 80 Honda 62 Road mix 6.2 1t Taraza Sincelejo 256 Surfacetreatment 5.5 3/4 Sincelejo Ovejas 46 Road mix 5.5 2 Ovejas Sincerin 100 Surfacetreatment 5.5 3/4 Sincerin Cartagena 48 Road m.ix 5.5 2 Cartagena(Caim.an) Barranquilla 127 Road mix 6.5 22 Dinal Sabaleta 22 Hot mix 6.1 3 Saladito Km. 4 8 Hot mix 6.1 3 Cali Palmira 26 Hot mix 6.7 2 Palmira Amaime 9 Hot mix 6.7 2 Amaime Tulua 69 Surface treatment 6.7 1 Tulua Cartago 95 Hot mix 6.7 2 Cerritos Cauya 62 Hot mix 6.7 2 Cauya Versalles 161 Surface treatment 6.7 3/4 Versalles .edellin 56 Hot mix 6.7 2 Medellin Hatillo 35 Hot mix 6.7 2 Hati'jlo Yarumal 103 Surface treatment 6.7 3/4 Yarumal Taraza 117 Surface treatment 6.7 3/4 Cauya Arauca 28 Surface treatment 6.7 3/4 Arauca Km. 10 28 Hot mix 6.3 3 Total paving 2,599 km. TABIU II (COITT.)

ROADSIITCT7UDED ITV PROJECT

B. Roads includedin the projecton which base only will be constructed

Length Paving Paving Kilo- Type of Width Thickness From To meters Surfacing .seters Inches

Guespa Oiba 63 Gam.arra Ocana 82 Platinal Bucaramanga 1.80 lVanizalesKm. 37 Km. 80, Honda 43 Sabaleta Km. 34 82 Km. 34 Saladito 22 Loboguerrero Km. 34 28 (Cali- Buenaventuraroad) Loboguerrero Buenaventura 52 Armenia Pereira (Viaintonance only)

Total base only 552 Km.

C. Roads included in original project,which requiiredonly maintenance,incidental work, or no work, and omittedfrom revised.pro.iect.

Bogota Facatativa 42 paved,no work Sal-adito Cali 4 t' 111 llanliales, Em. 10 1iKanizales 10 " it " Pereira Km. 4 4 "I It" Fanizales Km. 8 8 " "i Buenaventura Pinal 4 " ii

Total 1iliscellaneous roads 72 Km.

Recapitulation

Tota' of roads includedin original and revisedprojects (A, B, and C) 3,213 Km. Total of roads includedin revised project(A and B) 3,151 Km. Percentpa7,ed roads in revisedproject 82-le. TABLE. III APPENDIX

A'.TAL PESO BUDGET FOR HIGHWAYS 1/ 1951 - 1956 (M4illionof Pesos)

1922 1953 1954 19-5 1956

1. Appropriationsfor Original Loan 19.5 21.0 16.3 13.7 -

2. Supplement to increase Paving to 50%O - 5.4 10.6 15.0 - -

3. Proposed Expanded ConstructionProgram (Completionof Project with 82 1/2' Paving) - - 32.52./ 39.010/ -

4. Maintenance(Shops, Equipment and Opera- tionalCosts) 18.6g/ 23.05 18.9t/ 23.6 36.4 36.5

5. ConstructionOutside Project I.B.R.D. is 1 Helping to Finance 19.7 8-A/ 13- 10.0 n.a. n.a.

6. Supervisionand Surveys _ 43.7 2.7 2.7 n.a. n.a.

TOTAL 57.8 61.8 914.3 104.0 36.4 36.5 n.a. = not available

1/ Includes actual appropriationsin 1951 - 1953, total highwiaybudget for 1954 and maintenance budget for 1955 and 1956. 2/ Includes 17.6 million pesos for maintenanceand improvementsand 1 million pesos for erjuipment. 3/ Includes supervisionend surveys but excludes 2.4 million pesos for Autopista, the cost of which is being met from taxes on lands adjacent to the new highway and from tolls. / Niotavailable. Included in Item 5. j Includes 22 million pesos for maintenanceand improvements,and 1 million pesos for equinment. 6| Excludes 3 million pesos for the Autopista. Z/ 2.5 million pesos of this amount has alreatd been ap-,ropriated. 8/ Includes 16.9 million pesos for maintenanceand improvements,and 2 million pesos for eauipment. 91 includes 2.3 million pesos from apnropriationfor maintenance,additions and improvementsand 11 million pesos from direct appropriationfor constructionand reconstruction. Excludes Li million pesos for the Autopista. 1O/ Includes 3 million pesos for the Tunja - Barbosa Highway and 1 million pesos for the 3uenaventura.- Lobo Guerrero Hi7hway. NUMBEROF MOTOR VEHICLES USINGCOLOMBIA HIGHWAY SYSTEM

40,000 - - 7 38,000_ _I_ 36,000 I -_-

34,000 __/

32,000 ___

30,000 l a obi/7

28,000 _

26,000

24,000

22,000 _

20,000 -- __ __

18,000

16,000

14,000 ____

12,000

10,000 __ _-

04oo 9 t-

6,000

41°000 i-}2

2,000 _

1940 1941 1942 1943 1944 1945 1946 1947 1948 199 1950 1951 t952

RE PU B L I C O F C O L O M B I A

M.4INgT I S T R Y O F P U B L I C . 9 R K S

MNT-JI-P,TTCE DOC"lTi,NT No. 1

P:ROGO -:Th T_17'iWE77

OF

NIATIgOU' HIGi, AYS IN'4 COLOMBIA

August 19, 1953 TMBLL.OF CON.'ENTS

Page

I. Introduction 1

II. Objective 1

III. A Basic Policy 1

IV. Organization 1

V. Personnel and Staff Relationships 3

VTI. Operations and Financial Requirements 6 I. Introduction

1. The lack of an adequate national transportationnetwvork has been the greatest impediment to Colombia's economic grow^rthand integration. A fundamental step to overcome this handicap is no'rbeing taken in the recon- structionof the most important highways of the country and by some new construction. Colombia is investing a great deal of money in this program. But these expenditures,like many such expendituresin the past, will be wasted if the highwrraysare allowed to deteriorate. Roads start to deteriorate as soon as they are completed. It is therefore imperativethat a sound program for continuingmaintenance be adopted and put into effect immediately. This requires an efficient organization,a clear conception of its functions and duties, an appropriateallocation of responsibilities,adequate staffing, proper equipment and the assurance of funds necessary -tocarry out its work.

2. The following Program has been developed to accomplish these purposes.

II. Objective

3. The rmajorobjective of this program is to provide an appropriate organizationand an effectivemethod of maintenance operationsby wrhich Colombia may secure adequate, continuoasand lasting service frornits national highways.

III. A Basic Policy

4.. It is a fundamental principleof sound highwvaymanagernent that sufficient funds be provided for the conservationof improved highways and that conservationtake precedence over new constructionand reconstruction. In conformitywrith this principle, highway maintenancebudgets wvillalways be adequate and will not be diverted to other highway operations. Only after adequate funds to rmeetall maintenancerequirements are assured,will funds be allocatedto new constructionand reconstruction.

IV. Organization

5. 4.11highway constructionand maintenanceoperations in the Ministry of Public w7orkswill be carried out by a Department of Highways. The organi- zation and functions of the Mlaintenance Division of the Department of Highways are set forth below. The organizationand functions of the other Divisions of the Department of Highways shall be determined by the Iinisterof Public W~orks.

6. All highway maintenanceoperations of the Ministry of Public VTorks will be carried out by a MaintenanceDivision in the Department of Highways. The organizationof the MfaintenanceDivision will be as follows: -2-

>ETNISMRYOF ?UBLIC1C'ORYS

IDERAWMENTOF I1IGIRTAYS L'iI ) e,~I

|M0INTE.VTT DIVISIOIj|

______I I' ___ ECQ;UIPI,E\~TTSE~CTION 1 PLWLNTFIG; r2TIONx DT~RTF E I~ PCU SEcrol

< I Lt:NE B zrltxl~~17,IT E15 ci rE>i'° SCUF

7 O1'' ES

1HTOPS j OPTAIONS ACCOU1T,TET

7. The Central office of the '-aintenanceDivision will be responsible for planning and supervising all the operations of the Division. The Central Office will have four sections:

,A. Equipment 3, Plenning C. Administrative, and D. .ccounting.

8. The Eauipment Section will be responsibole for establishing standards and procedures for the efficient operation.,repairand maintenance of'equip- ment and the operation of shops. Jointlywith the AdministrativeSection, -3- it will also be responsiblefor training personnel in the operation,repair and maintenance of equipment and in the operation of the shops. It will prepare specificationsfor, and supervise the purchase of, equipment, spare parts and suoplies for equipTnent. It will conduct field inspectionsto ensure the efficient use and maintenance of equipment and shops, and proper control of inventories.

9. The Planning Section will be respons-Lble for long-range planning of maintenance operations and for preparing maintenance budgets. It will maintain an accurate and current list of national roads which will include data by appropriatesection lengths on type of construction,condition, character and volume of traffic and other pertinent information. It will formulate for issuance by the M1inistryregulations governing the use of the national highways, including limitatior4s on the speed and weight of vehicles and other traffic controls.

10. The AdministrativeSection will be responsible for all personnel and administrativeactivities of the Division. Jointly with the interested Sections, it will be responsiblefor all training act>vities of the Division.

11. The .9ccountingSection ,willbe responsiblefor establishingand maintaining an accurate system of financialrecords and accountingcontrols of all expendituresby the Division.

12. The national highwr,!aysystem will 'Dedivided into Zones, each with a specified headquarters. The number of Zones and the location of Zone head- auarters may be -rariedas necessary to insure maximum efflciency and effective utilization of personnel and equipment.

V. Personnel and Staff Relationships

A. Director of Higxhwayrs

13. The Director ot'Highwvays will be responsible for and supervise all highway activities in the Ministry of Public W"orks and report directly to the :Anister of Public iborks.The heads of the Construction,M.1aintenance and other Divisions of Tle Department of Highawaysw^ill report to the Director of Highways.

14h In order that the Ministry of Public Works may benefit from the experience of other countries in organizing and operating a modern Department of Highways, an outside ProvisionalAdvisor on Highways will be engaged for a minimum period of twFoyears. The Provisional Advisor on Highways, who will be obtained as soon as possible to help organize the Department of Highways, will be selected on the basis of wide experienceand indicated ability in highrwayadministration, planning constructionand maintenance. He will work closely with the Director of Highways in the organizationand operation of the Departmentof HighwAraysand w.illreport directly to the Miinisterof Public tiorks. B. MaintenanceDivision

15. There wvillbe a Permanent Staff and a ProvisionalStaff in the ,aintenanceDivision. The head of the ?ermanent Staff will be a Chief Engineer of M.Iaintenance.The head of the Pro-visionalStaff will be a Provision- al Director of lb.-aintenance.

Permanent Staff

16. The Chief Engineer of Mfaintenancewill report to the Director of Highways and will be responsiblefor the general administrationand operation of the MaintenanceDivision. Chilethere is a ProvisionalDirector of M,ainten- ance, the Chief Engineer of 11aintenancetill cooperate v;ith, and be directed by, the 'rovisionalDirector of M1.aintenancein budgeting and allocatingthe Division's funds, setting maintenance standards and preparing programs for maintaining and improNing national roads.

17. The Equipment Section will be under the direction of an Equipment Engineer. He will report to the Chief ,ngineer of 'Maintenance and be respon- sible for (1) establishing standards and procedures for the efficient operation, repair and maintenance of equipment and the operation of shops, (2) training personnel to onerate, repair and naintain equipment and operate shops, (3) preparing specificationsfor, and supervi.singthe purchase of, equipment, spare parts and supplies for equipment, (4) conductingfield inspectionsto insure the efficient use and maintenanceof equipment and shops and (5)main- taining adequate records of inventoriesof equipment,'spare parts and supplies, and the depreciationof equipment.

18. The Equipment Fngineer will be assistecdby two Assistant Equipment rEngineers,vho will reportto him. The t.ssistantEngineers will make periodic field inspectionsof shops,equipment, spare parts,and suppliesfor equipmelnt. They will aid in planningprocedures for efficientshoo operationsand advise tne Equipment Engineer of equipment needs.

19. The Planning Section wvill be under the direction of a Plmnning Engineer. He will report to the Chief Engineer of Maintenanceand be respon- sibolefor (1) planning a long-range progranl of maintenance operatioins, (2) preparingmaintenance budgets, (3) maintainingrecords of each sectionof th'enational highvay system and (1) formulatingfor issuanceby the ifnistry regulationsgoverning the use of the nationalhighways, including limitations on the speedand weight of vehiclesand other trafficcontrols. 20. rhe AdministrativeSection wlill be under the direction of an Engineer in Charge of tdministration. lie vrill report to the Chief Engineer of Taintenance,be responsiblefor all personneland administrativeactivities of the Division,and act for the Chief 'ngineerof M.1aintenancein his absence.

21. The lccountingSection ill be tnderthe directionof a Chief Accountant.He will reportto the Chief Engineerof M.aintenanceand be responsiblefor establishingand maintainingan accuratesystem of financial records and accountingcontrols of all expendituresby the Division.

22. At least two Field Sngineerswill be attached to the Central Office and report to the Chief 3rgineerof M4aintenance.They will make periodic field inspections and aid and advise field personnel in carrying out effectively the prograras and policies of the Division.

23. Each Zone will be under the supervision of a Zone Engineer who will report to the Chief Engineer of M.1aintenance.He will be responsible for all operations of the Division in his Zone in accordance with the programs and policies of the Division.

Training

24. For the purpose of disseminating new ideas in the field of highway maintenance, promoting the exchange of ideas and reviewing problems, the T5aint enance Division will conduct semi-tnnualmaintenance meetings. All Zone Engineers and selected engineers from the Central Office will be required to attend. Tne 1eaintenanceDivision will prepare and distribute an agenda at least two weeks before the meetings are scheduledto begin, based on, but not limited to, problems submittedby persons scheduledto attend the meetings.

25. The TMaintenanceDivision will also conduct a job training program for equipment operators,mechanics and shop foremen which will include a central training center and field training.

ProvisionalStaff

26. In order that Colombia may benefit from the experience of other countries, a group of nine outside highway engineerswill be engaged for a irnimum period of two years. These engineers, *.howill be obtained as soon as possible to help plnce this maintenance program into effect, will be selected on the basis of their experience in highway maintenanceand their indicated ability to aid the permanent mnembersof the staff of the MIaintenance Division in carrying out their duties. The provisionalengineers who will be emp'oyed are:

1 Provisional Director of Maintenance 1 Maintenance Consultant 2 Equipment consultants 5 Field Maintenance Consultants.

27. The Provisional Director of ::Iaintenance will advise and work in close cooperation with the Chief Emngineer of T.Iaintenance in all matters relating to the wvork of the Maintenance Division. The Provisional Director of MIaintenance will report to the Provisional Advisor on Highways. He will have primary responsibility for programming maintenance operations, fixing maintenance budgets and setting performance standards for the Division. He will have access to all the Division records and will receive from the Mlinistry of Public V;orks -6- any other informationhe needs for the satisfactoryperformance of his duties.

28. The Maintenance roisultant vill report to the Provisional Director of `!Maintenance and act for him in his absence. He will advise and work in c'.osecooperation wvith both the Planning Enrigineerand the Engineer in Charge of Idministrationand otherwise assist the ProvisionalDirector of MKaintenance.

29. The two Equipment Consultantswill advise and work in close cooper- ation with the E'quipmentEngineer and the Assistant Equipment Engineers. They will report to the ProvisionalDirector of Maintenance and will make periodic visits to the various zones to assist Zone Engineers in improving the operation of shops and equipment. They will also confer with Field MaintenanceConsult- ants on mutual problems.

30. The five Field Mfaintenance Consultants will report to the Provisional Director of Mxlaintenance. Each Field Maintenance Consultant vwll be stationed at a Zone headquarters. He will be assigned a group of Zones in which he will advise and work in close cooperationwith the Zone Engineersin planning and carrving out maintenanceoperations.

VI. Ooerations and FinancialReauIrements

31. The Iaintenance Division will do several types of work, some of which wTillbe performed simultaneouslyand usually with the same equipment and crews. Good management reauires, however, that the planning, budget and cost records of each major category of work be separated from the others, For this purpose, the work of the M;I?intenance Division till be aivided as followfs:

A. Ordinary Maintenance, rhich will include two major categories:

(1) Routine MIaintenance (2) Improve-mentof Roads under Routine Mlaintenance.

B. Special Miaintenance,vihich wvill include +hree major categories:

(1) Pavement Resurfacing and t!Major Surface Repair. (2) Improve-mentof Unimproved Roads by M4aintenanceForces. (3) Emergency I-ork.

A. Ordinary Haintenance

32. Routine :.r.taintenance will include such wrfork as the leveling of aggregate road surfaces, patcning of paved surfaces, repair of shoulders and the cleaning of side ditches, drainage structures and right-of-way. Such work wrillbe the normal day-to-day task of small maintenance crewrrsof three to ten laborers, who wiillbe provided with tilenecessary tools and equipment. iach crew vill be under the direction of a forenan who will be responsiblefor maintaining a fixed section of road of ten to fifty kilometers, the length of which will depend on the type of road and terrain, the amount of traffic and other factors w.hichaffect the condition of the road. PRINCIPAI PROVISIONAl ANT PEY1-AŽ,E1TTSTAFFS OF Tli I A DIVISION

MINISTEROF lUBTIC W0i-i,fS I

I PROVISIONALAiVISOR ON HIGTHUAYS DI CTOR OF HIGE-.,AYS | I______

a I

__ e 3?Field I PROVISIONALLIRECTOR OF k'AINT12iTAITCECHIIEF BlIOTI1TEROF MAINTFNANCE Rineeers.

. ______<______. __ cI

__ - - - -

______, _ . - _ __ 12 Eouipment 1 f:.quipment Plaruning i .ainterance Ewngineer in Chief IConsultants j fElngineer Enginleer - r-Consultazt - -| Charge of Accountant - -_-_-_-_-_L _ - - - - -aoministrationj

1 5 Field Maintenance I...... Zone Engineersl/ C onsultants _ ------I

Note: Broken lines in boxes indicate Provisional Staff; other broken linies indicate cooperation between Provisional and Permanent Staff.

l/ Will also work with Section Chiefs in Central Offices. -8-

33. Improvementof Road8sUnder Routine Taintenance will includesuch thingsas widening and improvemento-r ihagieya'Ethe instalation of small structulresand the constructionof side ditches. This wtrorkwill be done by re-ularmaintenance crews and equipment,but only in periodswhen it will not interferewith routineMaintenance operations,

1. Speciali14aintenance

34. PavementResurfacing and 'MajorSurface Repair will be done according to a plan designedto preventdeterioration of road surface. Such work will be done by specialcrews and equipmentworking out of the aone headquarters.On bituminoussurfaces constructed to lowystandards, resurfacing will be planned to add to the pavementthickness so as ultimatelyto providea highertype pavenment.

35. Improvementof UnimprovedRoads with :','aintenanceForces will be made by eitherordinary or special =naintenancecrews only in periodswhen it wrill not interferewith other maintenanceoperations.

36. EmnergencyWork Xwillinclude such work as the removalof largeland- slides,the repairof major flood amaages,and the replacementof structures damagedin otherways. Althoughspecific work of this kind cannotbe predicted, a good maintenanceprogram must provideresources to permitregular maintenance forcesto take care of situationslikely to arise,

37. NeitherOrdinany nor Spec1alYM;aintenance includes major new construc- tion or reconstructionof highwaysby contractor as a specialproject by maintenanceforces.

Inventoryand rlassificationof Roads

33. In order to facilitatethe planningof operationsand the preparation of maintenancebudgets, a currentinventory of all nationalroads and trails w,illbe maintainedby the PlanningEngineer. The roads,but not the trails, will be classifiedaccording to importanceand groupedaccording to condition as follows:

ClassI roads will include all the trunkhighways in the national system.

Class II roads will includeall highways,other than trunkroutes, which are importantto the countrytseconory.

Class ITI roads will includenational highwrays of only local importance.

39. A road may be moved from a lower to a higherClass only in exceptional circumstanceswhen its basicimportance increases; a road will be moved from a higherto a lower Class wihenits nationalimportance decreases sufficiently. -9-

40. The maintenance and improvement of local roads in the national system (Class III roads) now place an excessive burden on the M4inistry of Public '.7orks, which has neither the funds nor the staff to maintain or improve them properly. This Program makes only limited provision for suich roads in view of the other demands on the National Government for highways. A more effective job could be done on these roads by local governments and consideration should therefore be given to removing these roads from the national highway system and placing the responsibility for them on the local governments.

41. Condition 1 will refer to roads which have been improved to generally accepted standards and require principally routine maintenance to keep them in good condition.

42. Condition 2 vill refer to roads which are open to traffic, but require minor improvements m addition to routine maintenance to keep them in good condition.

43. Condition3 w,.rillrefer to roadswhich are not open to trafficin some seasonsand whichrequire improvements and reconstructionbefore they can be kept in good conditionby routinemaintenance.

44. Roads may be movedfrom a lower to a higherCondition only when they sati.sfythe requirementsof the higherCondition. X'ith a good maintenance progran,roads need to be moved from a higherto a lower Conditiononly in exceptionalcircumstances.

FinancialRequirements for iIaintenance 45. Funds appropriatedfor Ordinary11aintenance will be used only for roads in Condition1 or 2 in all classesof roads;no part of such fundswill be used for any roads in Condition3, which wmillbe servicedfrom funds appropriatedfor SpecialiMaintenance.

46. In January1953, nationalhighways comprising 11,502 kilometers were in conditionfor routinemaintenance (see attachedmap). It is estimatedthat this will be increasedby 600 kilometersin 1954, by an additional1,000 kilometersin 1955 and by another1,756 kilometersin 1956 as constructionis completedon roads includedin the projectwhich the InternationalBank is helpingto finance. In 1953 therevwere 636 kilometersof trailsrequiring some mairtenance.

47. Experiencegained by the Mi,Lnistryof Public'7orks and by contractors indicatesthat the annualcost of routinemaintenance per kilometeraverages 1,200 pesos for Class I roads,1,000 pesos for ClassII roads,and 700 pesos for Class III roads. The trailsare normaellykept open duringcertain seasons of the year by an inferior type of routine maintenanceaveraging 300 pesos per kilometer.

48. From these figares, it is possible to estimatethe total annualpeso cost for routine maintenance of the national highuay system in 1954 through 1956, as shown in Table I on the next page. TABLE I

ROUTI1E MAITEEANCE COST FST'IMTAS FOR NTATIOYALFflG1WAYS BY CIASS-ANDCOFDITION 1954 - 1956

Roads 19L3 12L4 i2u 1956 by Type & Condition (Kilometers) (Kilometers ( (Elometers) (Peso Cost) (Kilometers3 (Peso Cost)

CLASS ,I 1.759 4-J59 4.990.800 5.3'9 5!6.310.800 .115 3.£1^_

Cond. 1 544 1,348 1,61?,600 2,648 3,177,600 4,804 5,764,800 Cond. 21 2,911 2,811 3,373,200 2,611 3,133,200 2,311 2,773,200 Cond. 3- 304 200 100 _ - --

GI.ASSII 313. 3 335 000 213.5 2.V35.0Q0 3 311 . 2a5£020QO

Cona. 1 46 385 385,000 735 735,000 1,135 1,135,000 Cond. 2 2,241 2,000 2,000,000 1,800 1,800,000 1,600 1,600,000 Cona. 31/ 1,0OS8 950 600

CL.ASSIII 377?2 3.722 1,4o.4oo 3.772 2.Q80J400 1772 2.Z20.400

Cond. 1 20 350 245,000 750 525,000 1,150 805,000 Cond. 2 2,593 2,422 !,695,400 2,222 1,555,400 2,022 1,415,400 Cond. 311 1,159 1,000 - 800 - 600 -

TRAILS 636 1900O.8O0 . Q6 190.800

GRaMD TOTAL. flS0 12.1202 j50700 .2,jQ2 11.117Q,00Q 14.858 13,684.20o

1/ ITotsubject to routine maintenance. TABE ITI

ESTIMATED 1AINTXIANTCECOSTS TO BE MET EROM EYATIONIT.3UDGET 1/ 1954 - 1956 (Thousands of Pesos)

ORLINARYM STE5CE 1954 i52 l9'6

Routine Maintenance 9,500 11,100 13,700

MaintenanceEquipment, Spare parts, Freight and Insurance 1,0O00- 13,5003/ 8, OOC4/

Supplies and miscellaneousrepair parts 2,000 2,000 2,000

Shop eonstruction Program 3,500 - _

Improvementof Roads under Routine Maintenance 2,000 3,100 4,000

AdministrativeCosts _ J000 2.000

TOTAL 2800 31,700 29.200

SPECIAL 14AINTENANCE

Paving, Resurfacing and Major Surface Repair 600 600 1,800 Improvement of Unimproved Roads with MaintenanceForces 2,100 2,000 2,000 Emergency Work 1,000 2,000 3,000

X-ighwayScales 100 100 = _. TOTAL. 12800 4_200. 6..80_ TOTALMAITA17CE -2600 6.400 36O00 l/Excludes ntajorimprovements and reconstructionby contract or as special projects with maintenance forces. 2/Freightancd insurance only. 3/EquipmentLO million pesos, spare parts 1.5 million pesos, and freight and insurance 2 million pesos. 4/Equipment 5 .25 million pesos, spare parts 750,000 pesos, freight and insurance 1 million pesos and equipment replacements 1 million pesos. -10-

49. Table II, which follows Table I, indicates the probable cost of adequate ordinary and special maintenance in 1954 through 1956 which will have to oe met from the national bud-et. IWhilethe estimttes for 1954 are reasonably accurate, and will be the basis for maintenance appropriationsfor that year, thee5timate= for later years mayhave to be modifieds

IJeightControl

50. In order to prevent severe damage to highways by cverloadedvehicles, the Governmentwill prohibit the use of the nationel highways by such vehicles and will impose effective sanctions against violations. To protect the highways against overloading,a minimaumof twenty checkpoints,each writha permanent scale and manned by competent enforcementpersonnel, will oe placed at strategic points on the most important highways, the first ten oy July 31st, 1954, and the second ten by July 31st, 1955. In addition to other sanctions,the excess load will be removed from overloaded vehicles before they are permitted to proceed from the checkpoint*

Shops and Shop Equipment

51. Before an expanded maintenanceprogram can be put into full operation additionalshop facilitiesmust be established,according to standardizedplans prepared by the ~1aintenanceDivision. These shops wrillbe classified according to the kind of facility as follows:

Type of Chops Approximate Cost of Shop Building Equipment (Pesos) (Dollars)

Class I 250,000 35,000 ClassII 200,000 25,000 District 100,000 15,000

52. Class I Shops nill be located at the headquartersof the larger and more important zones; Class II Shops wiillbe located at the headquartersof the remaining zones; District Shops will be located in areas remote from zone headquarters. Some shops have already been partially constructedboy the M1inistryand two have been completed by the contractorsw,orking on the project which the InternationalBank is helping to finance; others are still to be built by these contractors as part of their present contract obligations. additionalshops vwll be built by the contractors,to whom additionalfunds will be appropriatedfor this purpose, and others will be constructedby the MaintenanceDivision. By the end of 1954, a total of 28 shops rill be in operation, of which 9 wrillbe Class I Shops, 12 Class II Shops and 7 District Sho'os. Following is a list of these Shops by type, location, builder, the peso cost of constructingshops and dollar cost of shop equipment: -ll- Additional Cost of Type of Shops Shops Equipmen- and (Thousands7Thousf Location To be constructedby Remarks of pesos) of dollan

CLASS I Pasto Ministry Partially constructed 100 35 Neiva n Ut 100 35 Cali Ra.ymond New appropriation needed 100 35 Armenia Utah In present contract - - Ibague Morrison-Knudsen II Newi appropriation needed l00 35 Bogota Vt " Completed - - viedellin Raymond New aporopriation needed 100 35 Bucaramanga MIorrison-Knudsen I Completed - - Cartagena A.Tinston New appropriation needed 100 -

CLASS II Tuquerres MJinistry Partially constructed 100 25 Popayan " " !I 100 25 Garzon n To be constructed 200 25 lianizales Utah Nevwappropriation needed 150 10 Villavicencio Mlinistry Partially constructed 50 25 Tunjai " " 100 25 Duitama To be constructed 200 25 Barbosa 14orrison-KnudsenI Partial appropriationneeded 150 25 Cucuta. it it I" t n 200 10 Ocana " " " I " 100 20 Valledupar Ministry Partially constructed 100 25 Fundacion "T To be constructed 200 25

DISTRICT Cartago Raymond Newvapprooriation needed 100 15 Hionda Utah Partial a9propriation needed 50 15 Riosucio Raymond New appropriationneeded 100 15 Bolombolo iMlinistry To be constructed 100 15 Caucasia 1YTinston Partial appropriationneeded 50 10 Pamplona Mlinistry Partially constructed 30 15 Sincelejo inston New appropriationneeded 130 -

TOTAL 2,810 525

Spare Parts 50 Freight and Insurance for Shop Equipment 290 Contingencies 0oo _

GFtND TOT.L: 3,500 575 -12-

MAaintenance ERuipment

53. -According to available information in the lMlinistry7 of Public V.Yorks an adequate maintenanceprogram xill also require about ',8million of mainten- ance equipmentbefore the end of 1956 as follows:

Before the end of 1954 $#1.9 million During 1955 4.0 During 1o56 2.1

TOTAL $ 8.0 million

54. The InternationalBank will be asked to finance the foreign ex- change cost of equipment to be acquired before the end of 1954 (including spare parts, the proposed loan for this purpose uould amount to .2G2 million). The peso cost of freight and insurance for this equipment, estimated at 1 millio; pesos, will come from the 1954 budget (see Table II, footnote 2). The cost of the 84 million of equipment to be purchased during 1955 will be provided for by an appropriationof 13.5 million pesos in the 1955 budget, of which 10 million pesos will cover the cost of the G';4 million of equipmnent,1.5 million pesos will be for 'oOO,O000of spare parts and 2 million pesos will be for freight and insurance (see Table II, footnote 3). 7he cost of the S2.1 million of equipment to be purchased during 1956 wErillbe provided for by an appropriation of 7 raillionoesos in the 1956 budget, of which 5.25 million pesos will cover the cost of j2.1 million of equipment, 750,000 pesos wvillbe for ',300,000of spare parts, and 1 miiil2ionpesos 'willbe for freight and insurance (see Table II, footnote 4).

55. Following is a list of equipment to be purchased before the end of 1954 with the proceeds from the proposed InternationalBank loan. No. of Unlt Price Total TJnits (Dollars) (Dollars)

Pickups 4, 1100 49,500 Dump Trucks, 3 yard 100 3000 300,000 DurmpTrucks, 5 yard 10 6000 60,000 Tank Trucks 17 4500 76,500 Gasoline Trucks 16 6000 96,000 Distributors 3 6000 18,000 Trailers 9 20000 180,000 Rollers 10 7000 70,000 Motor Graders 22 14000 308,000 Tractors (D-6) 35 12000 420,000 Front End Loaders 32 10000 320,000

TOTPL 1,898,000

Spare parts 302,000 GRATYDTOTAL $ 2,200,000 -13-

56. The equipment now being used by the contractorson the project which the InternationalBank is helping to finance vwillbe used for new constructionand reconstructionafter the project is completed. HowTever, after the completion of each contract, the Ministry wvillretain each contractor'sequipment required for maintenance of roads covered by his contract until other adequate maintenance equipmenthas been provided for that purpose.

57. The total dollars and pesos for new shop facilities, maintenance equipment,highway scales and provisionalpersonnel needed for this Program will be as follows:

I TEM Dollars Pesos Shops Shop Buildings (including contingencies) 3,210,000 Shop equipment 525,0oo Spare parts 50,000 Freight and Insurance 290,000

Maintenance Equipment

Equipment and spare parts 2 200 000 7;500;Q00_ Freight and Insurance 4,000,000

Highway Scales 80,000 200,000

ProvisionalStaff 245,000 300,000

TOTKL 3,100,000 25,500,000 l/Peso equivalent of 86.1 million of maintenanceequipment and $900,000 of spare parts.

58. The annual dollar and pogo requiremesntsfor thin Progrnm, from 1954 through 1956 will be as follows:

Year Dollars Pesos

1954 2,940,00i / 4,750,00 3 1955 160,O00T 13,750,000 1956 __ 7,000,00OZ/

3,100,000 25,500,000 l/Includes t52.2million for maintenanceequipment, $Tt,000 for shop equipment and spare parts, 1h0,000 for highway scales and -125,000 for ProvisionalStaff salaries. 2/Includes ,K40,000for highway scales and -120,000for ProvisionalStaff salaries. 3/Includes3,210,000 pesos for shop buildings, 290,000 pesos for freight and in- surance on shop equipment,1 million pesos for freight and insurance on main- tenance equipment, 100,000 pesos for highway scales and 150,000 pesos for ProvisionalStaff allowrances* -14- h/includes 10 nillion pesos (ecuivalentto $4 million) for maintenance equipment,1.5 million pesos (equivalentto :600,000) for spare Darts, 2 million pesos for freight and insurance, 100,000 pescs for highway scales and 150,000for ProvisionalStaff allowances. 5/Includes 5.25 million pesos (equivalentto 2.1 million) for maintenance equipment, 750,000 pesos (equivalentto $300,000) for spare parts and 1 million pesos for freight and insurance. 59. This is a new programand wvillrequire periodic reappraisal and modificationas experience is gained. On the basis of such experience, the Minister of Public 7orks will from time to time make such additions to and changes in organization,functions and operations of the Ainistry as are needed to accomplish the objectives of this program. SCHEMATICMAP OF COLOMBIANNATIONAL HIGHWAYS StaM airt a;o/ . BARRANQUIL Cuesteci \ /

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