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Documentof The WorldBank ReportNo: 19086-BO Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ONA Public Disclosure Authorized PROPOSED CREDIT IN THE AMOUNT OF SDR 64.7 MILLION (US$88.0 million equivalent) TO BOLIVIA FOR THE Public Disclosure Authorized ABAPO - CAMIRI HIGHWAY PROJECT APRIL 28, 1999 Public Disclosure Authorized Finance,Private Sector,and Infrastructure CountryManagement Unit - LCC6C Latin Americaand the CaribbeanRegional Office CURRENCY EQUIVALENTS Currency Unit Bolivianos ($Bs.) LC $Bs. 1 US$ 0.18 US$ I LC $Bs. 5.72 (Exchange Rate April 28, 1999) SDR 1 US$ 1.36202 (Exchange Rate Feb. 28, 1999) BORROWER'S FISCAL YEAR: January 1 - December 31 ABBREVIATIONS AND ACRONYMS AADT Average Annual Daily Traffic ACA-HP Abap6 - Camiri Highway Project ADL Administrative Decentralization Law CABI Captainship of Upper and Lower Izozog County (Capitania de Alto y Bajo Izozog) CAF Andean Development Corporation (Corporaci6n Andina de Fomento) CAS Country Assistance Strategy CIDOB Federation of Indigenous Peoples of Bolivia (Confederaci6nNacional de PueblosIndigenas de Bolivia) ECP Export Corridors Project EIA Environment Impact Assessment EMP Environmental Management Plan ENFE Bolivian National Railway (Empresa Nacional de Ferrocarriles del Estado) ERR Economic Rate of Return FONPLATA Financial Fund for the Development of the River Plate Basin (FondoFinanciero para la Cuencadel Plata) GOB Government of Bolivia HDM Highway Design and Maintenance Standard Model HIMP Highway Investment and Maintenance Program HIPC Heavily Indebted Poor Countries IBRD International Bank for Reconstruction and Development (World Bank) ICB InternationalCompetitive Bidding ICR Implementation Completion Report IDA International Development Association (the Association) IDB Inter-American Development Bank IRI International Roughness Index MDE Ministry of Economic Development (Ministerio de Desarrollo Econ6mico) NCB National Competitive Bidding NGO Non Governmental Organization PAD Project Appraisal Document PADI Indigenous Peoples Development Plan PCD Project Concept Document PCU Project Coordination Unit PID Project Information Document SDC Departrnental Road Service (Servicio Departamental de Caminos) SNC National Road Authority (Servicio Nacional de Caminos) SRMP Second Road Maintenance Project VMT Viceministry of Transport, Communications and Civil Aeronautics (Viceministeriode Transportes,Comunicaciones y AeronauiticaCivil) VOC Vehicle Operating Cost Vice President: Shahid Javed Burki Country Manager/Director: Isabel Guerrero Sector Manager/Director: Danny Leipziger Task Team Leader/Task: Jos6 Maria Alonso-Biarge Bolivia Abap6 - Camiri HighwayProject TABLE OF CONTENTS Page No. A. Project Development Objective ......................................................... 2 1. Project development objective and key performance indicators ................ 2 B. Strategic Context.............................................................. 2 1. Sector-related CAS goal supported by the project ................................ 2 2. Main sector issues and Government strategy ...................................... 3 3. Sector issues to be addressed by the project and strategic choices ............. 5 C. Project Description Summary ............................................................ 5 1. Project components...............................................................- 6 2. Key policy and institutional reforms supported by the project .................. 8 3. Benefits and target population ....................................................... 8 4. Institutional and implementation arrangements ................................... 8 D. Project Rationale .............................................................. 10 1. Project alternatives considered and reasons for rejection ......................... 10 2. Major related projects financed by the Bank and/or other development agencies 11 3. Lessons learned and reflected in proposed project design ........................ 12 4. Indications of borrower commitment and ownership .............................. 14 5. Value added of Bank support in this project ........................................ 14 E. Summary Project Analyses .............................................................. 15 1. Economic .............................................................. 15 2. Financial .............................................................. 15 3. Technical.............................................................. 15 4. Institutional .............................................................. 16 5. Social.............................................................. 16 6. Environmental assessment ............................................................. 17 7. Participatory approach.............................................................. 18 F. Sustainability and Risks .............................................................. 18 1. Sustainability .............................................................. 18 2. Critical risks .............................................................. 20 3. Possible controversial aspects ......................................................... 21 G. Main Loan Conditions.............................................................. 22 1. Effectiveness conditions .............................................................. 22 2. Other .............................................................. 22 H. Readiness for Implementation............................................................. 23 I. Compliance with Bank Policies............................................................. 23 Annexes Page No. Annex 1. Project Design Summary................................................... 24 Annex 2. DetailedProject Description................................................... 28 Annex 3. EstimatedProject Costs................................................... 34 Annex 4. Cost-BenefitAnalysis Summary............................................... 35 Annex 5. Financial Summary................................................... 43 Annex 6. Procurementand DisbursementArrangements .............................. 44 Table A. Project Costsby ProcurementArrangements ............................ 47 Table Al. ConsultantSelection Arrangements . .48 Table B. Thresholdsfor ProcurementMethods and Prior Review................ 49 Table C. Allocationof Loan Proceeds................................................. 50 Annex 7. FinancialManagement Assessment Summary ............................... 51 Annex 8. Environmentaland Social Assessment........................................ 53 Annex 9. Project ImplementationSchedule .............................................. 60 Annex 10. Project PerformanceMonitoring Indicators .61 Annex 11. Project ProcessingBudget and Schedule.66 Annex 12. Documentsin Project File.67 Annex 13. Statementof Loans and Credits.69 Annex 14. Countryat a Glance.71 Maps No. IBRD 30220 and IBRD 30221 Bolivia Abap6 - Camiri Highway Project Project Appraisal Document Latin America and the Caribbean Regional Office Country Management Unit - LCC6C Date: April 28, 1999 Task Team Leader/Task Manager: Jose Ma. Alonso-Biarge Country Manager/Director: Isabel Guerrero Sector Manager/Director: Daniel Leipziger Project ID: BO-PE-55230 Sector: Transportation Program Objective Category: Economic Management Lending Instrument: Specific Investment Loan Program of Targeted Intervention: [ Yes [X] No ProjectFinancing Data [ Loan [X] Credit [] Guarantee [] Other [Specify] Amount (US$m/SDRm): US$ 88.0 million equ./SDR 64.7 million Proposed terms: [X] Multicurrency [] Single currency, specify Grace period (years): 10 [] Standard Variable [] Fixed [ LIBOR-based Years to maturity: 40 Commitment fee Standard' Service charge: 0.75% Financing plan (US$m): Source Local Foreign Total Government 28.0 4.0 32.0 Cofinanciers IBRD IDA 36.4 51.6 88.0 Other (specify) 0.0 0.0 0.0 Total 64.4 55.6 120.0 Borrower: Government of Bolivia Guarantor: Responsible agency: Servicio Nacional de Caminos - SNC (National Road Authority) Estimated disbursements (Bank FY/US$M): 2000 2001 2002 2003 2004 Annual 16.8 25.4 26.1 13.0 6.7 Cumulative 16.8 42.2 68.3 81.3 88.0 Project implementation period: 10/01/1999 - 06/31/2003 Expected effectiveness date: 10/01/1999 Expected closing date: 06/30/2004 I A variablerate between0% and 0.5% of the undisbursedcredit balanceset annuallyby the ExecutiveDirectors of IDA. OSD PAD Form: July 30, 1997 Page 2 A: Project Development Objectives 1. Project developmentobjective and key performanceindicators (see Annexes land 10): The overall purpose of the project is to improve transport conditions along a strategic north-southcorridor linking the Bolivian departmentsof Beni, Santa Cruz, Chuquisaca,and Tarija and continuingto Argentina and Paraguay. By rehabilitatingand improvingthe Abap6-Camirisection of the Trinidad-YacuibaHighway, the Project aims to: (a) lowertransport costs; (b) foster the economicdevelopment of the Project Area; (c) improvethe incomelevel of the indigenouspeoples in the Project Area; and (d) establish economictransport links between the Borrower's territoriesand neighboringcountries. The project also aims to introduce comprehensivemaintenance by contract of part of the national road network with two purposes: (i) to ensure that the remaining corridor and the roads feeding into it will be in good conditionwhen the project is completed;and (ii) to extend the programto the entire national network, if it proves successful, so contributing
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