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World Bank Document 7-A-I // /-J-/'- / Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 12309-PE STAFF APPRAISAL REPORT Public Disclosure Authorized PERU TRANSPORTREHABILITATION PROJECT FEBRUARY17, 1994 Public Disclosure Authorized MICROGRAPHI CS Report No: 12309 PE Type: SAR InfrastructureOperations Division Country DepartmentI Latin America and the CaribbeanRegional Office Public Disclosure Authorized This document has a restrcted distibution and may be used by recipients only in the performance of their officiadduties. Its contents may not otherwise be disclosed without World Bank authoriztion. CURRENCYEOUIALENTS Currency Unit = Sol US$1 = 2.15 Soles (October 15, 1993) WEIGHTSAND MEASURES Metic System FISCALYEAR January 1 - December31 ABBREVIATIONSAND ACRONYMS CEPRI - SpecialPrivatization Committee (Comite Especial de Privatdzaci6n) CMCPL - Lima MunicipalBank for Popular Credit (CajaMunicipal de CreditoPopular de Lfrna) COPRI - Commissionfor the Promotion of Private Investment (Comisi6nde Promoci6n de la InversidnPrivada) CORPAC - Peruvian Airport and CommercialAviation Corporation(Corporaci6n Peruana de Aeropuertosy Aviaci6n Comercial) DGC - General Directorateof Roads (Dlreccffn Generalde Caminos) DGTA - General Directorateof Air Transport (DirecciOnGeneral de TransporteAereo) ECLAC - U.N. EconomicCommission for Latin America and the Caribbean ENAFER - NationalRailway Company(Empresa Nacional de Ferrocarriles) FCC - Central Railway (Ferrocarrildel Centro) FCS - SouthernRailway (Ferrocarrildel Sur) FCSO - South-easternRailway (Ferrocarrildel Sur Oriente) GDP - Gross Domestic Product GTZ - German Agency for Technical Assistance (Gesellschaft fir Technische Zusammenarbeit) ICAO - InternationalCivil AviationOrganization ICB - InternationalCompetitive Bidding IDB - Inter-AmericanDevelopment Bank ]ERR - Internal EconomicRate of Return w - MetropolitanPlanning Institute(Instituo Metropolitanode Planificaci4n) IRI - InternationalRoughness Index KfW - German DevelopmentBank (Kreditanstaltfr Wiederaujbau) LCB - Local CompetitiveBidding LIB - Limited InternationalBidding MEF - Ministry of Economy and Finance (Ministeriode Economfay Finanzas) MLM - Municipalityof MetropolitanLima (Municipalidadde IUmaMetropolitana) MTCC - Ministry of Transport, Communications,Housing and Construction(Ministerlo de Transportes,Comunicaciones, Vivienda y Construccidn) NGO - Non-GovernmentalOrganization NMT - Non-motorizedTransport PCU - Project Coordination Unit (Unidad de Rehabilitaci6n de Infraestructurade Transporte- URK) PPF - Project PreparationFacility SINMAC - National HighwayMaintenance System (Sistema Nacional de Mantenimientode Carreteras) SOE - Statementof Expenditures UCPP - Loan Coordinationand PreparationUnit (Unidadde Coordinaci6nyPreparacion del Pr'stamo) FOROMCAL USEONLY TRANSPORT RENABTUrATONYRS TableofCnU= LoaoanddPtojectSummary ................................ ... Hi I. THE ANSPRTSECRANDTREECONOR .......................I A. IheeCoumtryandits EconomicSeuing. .... , 1 B.TheTransportSector . 2 C. Road Transport ............................................ 4 D. Raiways .... 6 E. irTrasport ..................... ....................... 10 F. TransportintheL mMetropolitanRegion ...........................11 G. Sectorad Policy sues ..................... 12 H. PreviousBank Experience in the TransportSector .......... ............ 13 ii. THEPRQI ........... .......................... 14 A. Rationalefor BankInvolvemet .................................. 14 B. ProjectObjectives .................................... 14 C. ProjectDescription .................................... 15 D. ProjectCosts and Financing .................................... 19 E. Projectlementaon ................................... 21 F. Procurement .......................... 23 0. Dioursements,Acco ting and Audits.............................. 26 H. Reportng, Monitoringand Superiion ............................. 27 T. FinancIsAndysis .......................................... 28 J. EconomicJustification.. 31 K. EnviromentalAqspc .. 34 L. ProjectRisksand Safepa .. 35 IIIL AGfE.EM REACE AND REWUMMA= . .. 37 Maisreport is bad on th finding of an appraia misio wh vistd Pau in Juneand July 1993. Tb missioncomprised Mess./ines. GethardMwkhoff ClaskManage). losd Beia (alway EBner), Pa Gudnk Crapspcii), FrannieHumuplick(Eonomist),Gardsiutad (ighway Eng Moz MMdka(FnlAnalyst, Norna Rodrd (Opions Astnt), JuanDavid Qro (ionmel Spoeis), andJaime Crmllana, Leif looes, SergloPMan, Pet Schefes andUlbe van Loon(Conulan). Mudi of do prjet wu prepaed by consua washingin the Loan Coordinion and Ppaaon Uni (UCPP), inchdWi Mart Julia Guan (Coordinor), NStOr Ps, Ro Garots, Sara Ball, AmandoRivera Enges). RotAo PIas, Luas ibadott, Maoelorac, EsheVadivis ( omist), andHenia ArisizibAl,Anoni Clve, Wiledo Gutnz, andJos Ris (uvuom Spel). T pcer w em e Mess. Sephe Star nspotSpecalis) adl Rebeloa Plan). Mes Aifai, Orvie Grm and Rainer St hanarerespectrvly managingDin ClefP4ojeAdviser, adDepamDie rothwopeon Ms. Glria Berneo aisted in t production of tis report. This document has a restrctod distributionand may be used by recipients onl in the performance of their officialduties. Its contents may no otherwie be disclosedwithout Wodd Bankauthorization. ii ANNE= 1. AnCOvehewofTransportConditions andlBues ............... ........40 2. PolicyObjecdves, Stratees and Priorities, and Refoms in the>rKSport Ser ........... ...... 55 3. PreviousBanExpeeer ie elthTra.sp. te.t.r.... 59 4. Road Rehabilitadonand Mainteance . .... ... ........ 63 5. Road Administration andFinance .. ... ......... ... 74 6. PivatioionandRhailitaonoftheRiawas .................... 80 7. RehabilitationofLimaAlrportRnway.. 96 8. PiotProjectforNon-MotorizedTransportnLima. .104 9. TechnicalAssistance ............... 110 10.TrdingProgrm . .. 113 11.DeaDledProjectCostsand Fnancng ........................... 116 12. 1Iementation Schedule,Monitoring Indicators and ProjectSuperido .... 118 13.EstimatedScheduleofBankLoanDisbusements . 127 14. EcononicEvaluaton ................ 128 15. EnvionmentAqlAspes. .. 136 16. SelectedDocuments andDataAvailable lntheProject F.....142 TABLES Tablel ModalDistributionofDomeslc FreigtTrafficc ...... ..........4 Table2 ENAFER-SelectedFinancialData,1990-92 ............ 9 Table3 Project Cost Summary .......................... 19 Table4 FinancingPlan..... 20 Table5 ProcurementArrangements ............................. 24 Table 6 E ed Disbusement .. .............................26 Table7 LoanDisbursementsbyCategory .........................27 Table8 TrendsinRaiwayTraffic,1987-1M ........ .............. 29 Table9 FianiPojecdonforRallways...... ................... 30 Table10 EconomcEvaluation ofRoad RAiationSh Schemes ........ .... 33 MAPS NationaTransport System: MD 25544 Pilot Projec for Non-MotrizedTranspo in Lima: IBRD25105 In PERU TRANSPORT R 1HAJITATIONPROJECT Loan and Project Sun_nary Borrower: Republic of Peru. mplauen-Ing Agendes: Minwtryof Trprt, Com cations, Housing and Construction NationalRailway Company(ENAFER) Municipalityof MetropolitanLima. Amount: US$150 million equivalent Tom: Repayment in 20 years, including five years of grace, at the Banks standard variable iterest rate. Project Objectves: The main objectives of the project are to: (i) rehabilitate eential nsport infrastructre which, primily because of insufflcient maintennce, has fallen into disrepair; Qi) assist Governmentin Lmplementg institutionalreforms in the road and raflway subsectors, aimingat improvedresource use and sustnable development;and (I) lay the ground work for future projects focussingon strengthenedroad management,increased private participation in the tansport sector, and improvedmobility of the poor. Project Descipdon: TMeproject would consistof five components,the most importan concerning ma reabi1=ittannd maintnance. Six roadstotaling 725 km wouldbe rehabilitatedunder the project. Of these, 307 km wereincluded in the Wodd Bank'sprevious highway loan, but could not be completed. In addiio tis componentwould include (i) a bridgeprogram Involving the acquisitionand recovery of Baileybridges and the reoostructionof derelictold bridges;(Ui) a pilot maintenan programfocussing on 620 km of roadin a specifiedcorridor, and Ol a traffic safety program. In parallel, the project would support govemmentefforts to rebuild an intitona structure capableof maintainingtheroad system. The secondcomponent would help to patizeand rebabilitatethe UaDway.by (I) reducingstaff redundancy, (u) rationalizingraiway debt,(iii) closing down or receivingbudgetary transfes from the Government for unprofitable services, and (iv) ilitating tracks, telecom cons and locomodvesto keep the railway in operating condiion whfle the privtzaton process is underway. The third componentconcerns the reabiliadon of Lima's aiXort tunway which, acrding to ICAO and some major airlines, is in urgent need of repair, before it becomes a danger to viation. The fourth componentwould be a piot poject for nonmtotized tansr iv inLimato test methodsof promotingthe use of bicyclesby low- incomeresidents. The fifth component,technicl asistne and aningwould (I strenen the suonal capacityfor magng roads and bridges,and to supportthe creation and fosteringof au autnomousagency reponsible for planing, opeat, fiancing, and the highwaynetwork; (11) build capacity In the MCC to mae enron l Isues; and (li) assist the railway in its pVzaton and imprving its manement Project Bendits: The mainproject benefit would be a more efficientand cost effective transportsystem
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