World Bank Document

Document of g v The World Bank 0

FOR OFFICIAL USE ONLY Public Disclosure Authorized

Report No. 3623b-HA Public Disclosure Authorized

STAFF APPRAISALREPORT

SIXTH HIGHWAY PROJECT

HAITI

March 8, 1982 Public Disclosure Authorized Public Disclosure Authorized Projects Department Latin America and the Caribbean Regional Office

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Currency Equivalents

US$1 = 0 5.00 ¢ 1.0 = US$0.20 ¢ 1 million = US$200,000

Weights and Measures: Metric

Metric British/US Equivalent

1 meter (m) = 3.28 feet (ft) 1 kilometer (km) 2 0.62 mile (mi) 1 square kilometer (km ) 0.386 square mile (sq mi) 1 metric ton (m ton) = 2,205 pounds (lb) 1 cubic meter (m3) = 1.3 cubic yards (cu yd)

Fiscal Year: October 1 to September 30

Abbreviations and Acronyms

AAN - National Airport Authority (formerly AAIPP) AAIPP - International Airport Authority of Port-au-Prince (now AAN) AASHTO - American Association of State Highway and Transportation Officials APN - National Port Authority BRH - Bank of the Republic of Haiti CEBTP - Centre d'Etude du Batiment et des Travaux Publics (France) FAC - Fonds d'Aide et de Cooperation (French Bilateral Aid) HASCO - Haitian American Sugar Company IDA - International Development Association IDB - Inter-American Development Bank KfW - Kreditanstalt fur Wiederaufbau LNBTP - National Laboratory for Buildings and Public Works NTS - National Transport Study ODN - Northern Regional Development Agency SAT - Autonomous Transport Department (TPTC) SCS - Construction and Works Supervision Department (TPTC) SEPRRN - National Permanent Road Maintenance Department (TPTC) TPTC - Ministry of Public Works, Transport and Communications UNDP - United National Development Program USAID - United States Agency for International Development FOR OFFICIAL USE ONLY

STAFF APPRAISAL REPORT

SIXTH HIGHWAY PROJECT

HAITI

TABLE OF CONTENTS ! Page No.

I. THE TRANSPORT SECTOR ...... 1

A. Background ...... 1 B. Sectoral Development and Priorities ...... 2 C. Institutional Framework ...... 3

II. THE ROAD SUBSECTOR ...... 4

A. Road Network ...... 0...... 4 B. Characteristics of the Vehicle Fleet and Traffic .... 5 C. Road Transport Industry ...... 5 D. Administration ...... oo..... 7 E. Planning and Engineering ...... 8 F. Feeder Road Development ...... 8 G. Construction and Construction Industry 9...... 9 H. Supervision of Construction ...... 10 I. Maintenance ...... 10 J. Financing and Energy Pricing ...... 13

III. PAST AND ONGOING IDA ASSISTANCE TO THE ROAD SUBSECTOR..... 14

A. Past Projects ...... 14 B. Ongoing Project ...... 15

IV. THE PROPOSED PROJECT ...... 15

A. Objectives and General Description ...... 15 B. Maintenance Component ...... 16 C. Bridges and Other Drainage Structures Component ...... 18 D. Road Rehabilitation Component ... o ...... 18 E. Technical Assistance Component ...... 20 F. Cost Estimates, Financing and Disbursement ...... 21 G. Execution and Procurement ...... o...... 23 H. Monitoring ...... 25

This report is based on the findings of an appraisal mission which visited Haiti in May 1981. The mission comprised Messrs. Adhemar Byl (Economist), Zbigniew Kowalski and Ernesto Henriod (Engineers) and Alain Barbu (Financial Analyst). The report has been edited by Miss Virginia Foster.

TABLE OF CONTENTS (Continued)

Page No.

V. ECONOMIC kVALUATION...... 26

At General 26 B. Road Maintenance Compcient 26 26 C. Bridges and Other Drainage StructuresComponent..n.t. 26 D. Road RehabilitationComponent 27 Es Risks ...... 28

VI. AGREEMENTS REACHED AND RECOMMENDATION ...... t....sees. 28

TABLES

2.1 Current and Projected Highway Network, 1981-1986 ...... 30 2.2 Vehicle Registration, 1975-1980 ...... 31 2.3 Vehicle Imports, 1970-1980 ...... 32 2.4 SEPRRN's Maintenance Expenditures, FY1977-1986 ...... 33 2.5 Classificationand Distributionof SLPRRN's Maintenance Brigades 34 2.6 SEPRRN: Assignment of Maintenance Equipmen;. 35 2.7 Current and Capital Expenditures for Roads, FY 1976-1981..... 36 2.8 Revenue from Road UYser Charges FY 1974-1980 ...... 37 2.9 Petroleum Consumption by Economic Sectors, 1978-1979 ,...... 438 2.10 Evolutionof Retail Prices for Gasoline and Diesel Fuel, 1974-1981...... 39 2.11 PetroleumProducts-Estimated Price Structure as of May 1981 .. 40 4.1 SEPRRN Replacementand AdditionalEquipment Requirement 1982-1986 ...... * ...... 41 4.2 Program for Construction,Rehabilitation and Repair of Bridges, Box Culverts and Concrete Fords (2 pages) .9.999999 42-43 4.3 Bridges, Box Culverts and Concrete Fords to be Designed Only Under the Project ...... 44 4.4 Project Cost Estimate by Disbursement Category ...... 45 4.5 IDA DisbursementSchedule 1982-19842...... 46 5.1 Bridges and Other Drainage StructuresComponent - Results of Benefit-Cost Analysis ...... 47 5.2 Bridges and Other Drainage StructuresComponent - Vehicle OperatingCosts per km on Different Road Surfaceswith Nine Representative Vehicles ...... 48 5.3 Bridges and Other Drainage StructuresComponent - Present and ProjectedFuture State of Road Structures and their Access Roads (2 pages) ...... 49-50 5.4 Bridges and Other Drainage Structures Component- ResuLts of Sensitivity Analysis ...... 51 5.5 Road RehabilitationComponent - Variations in Vehicle Operating Costs with Changing Roughness ... 52 - iii -

TABLE OF CONTENTS (Continued)

Page No.

ANNEXES

1. Outline of Work Program for SAT ...... 53 2. Outline Terms of Reference for TechnicalAssistance for the ComplementaryStudy of the Domestic ConstructionIndustry.. 54 3. Outline Terms of Reference for TechnicalAssistance for Final Design and Supervisionof the Bridges and Other Drainage StructuresComponent ...... 59 4. OutlineTerms of Reference for Technical Assistance for Final EngineeringDesign and Supervisionof the Paved Road Rehabilitation Component ...... 63 5. Outline Terms of Reference for TechnicalAssistance for the Study of Road Maintenance Technology ...... 67 6. Scope of Work for the Annual External Audit of Project Accounts ...... 68 7. Selected Documents and Data Available in the Project File .... 69

CHARTS

I. Proposed Organizationof the Ministry of Public Works, Transportand Communications .. . 70 II. SEPRRN Organization Chart ...... 71 III. SEPRRN Main Workshop Organization Chart . . . 72 IV. ImplementationSchedule 1981-1984 ...... 73

MAP

IBRD 15894R - Haiti - Sixth Highway Project i I. THE TRANSPORT SECTOR

A. Background

1.01 Haiti is a comparatively small country covering the western third of the island of Hispaniola, an area of approximately 27,750 km2. The Dominican Republic occupies the eastern two-thirds of the island. Haiti extends from north to south over almost 200 km and from east to west at the southern peninsula, over 250 km. The country has a long and rugged shoreline of 1,530 km, amounting to more than 1 km per 20 km2 of land area. The interior of the country is mountainous, with about 40% of the land being above 500 m. Only one-third is suitable for cropping, 18% consists of pasture and 9% of forests. The rest is arid wasteland with steep slopes. In 1981, the total population is estimated at approximately 5.1 million, of which 75-80% live in rural areas. With an average population density of more than 180 inhabitants per km2 and a 1980 per capita income of about US$285, Haiti is one of the most densely populated and one of the poorest countries in the Western Hemisphere and, indeed, in the world.

1.02 One of Haiti's major problems is the rapid migration of the population toward the urban centers, particularly to Port-au-Prince, the capital's metropolitan area, where 900,000 people, more than 70% of the total urban population, are now concentrated. Besides Port-au-Prince, there are seven provincial centers, ranging in size from 20,000 to 60,000 inhabitants, and 61 smaller towns, many of which are poorly served by the existing transport system.

1.03 The characteristics which determine Haiti's transport system are the country's island location, its rugged terrain and long coastline, and the dispersion and low productivity of its agricultural sector, as well as the dominance of its capital city. Agriculture accounts for about 40% of the GDP.

1.04 More than 98% of Haiti's external trade is moved by sea and the balance by air or overland to the Dominican Republic. Although Cap Haitien, the second port, located in the north, is important for economic development there, it underwent no major improvement since 1953: neither did the smaller coastal shipping ports serving the traditional sector. Recently, however, a program for upgrading the Cap Haitien facilities, as well as an important coastal shipping port development, was started with IDA and KfW assistance. Cap Haitien is therefore expected to slowly recover some of its historic importance. While considerable tonnages (e.g., bauxite, petroleum, wheat, cement) are handled at specialized private terminals around the country, 95% of the general cargo trade is handled at Port-au-Prince, located at the center of the country's west coast. International passenger traffic is mainly by air and by cruise ships serving Port-au-Prince and Cap Hatien, bringing a large number of one-day visitors.

1.05 Inland transport moves primarily by road and is, to a large extent, concentrated on the few recently constructed primary roads such as the Northern (Rl) and the Southern (R2) roads, linking Port-au-Prince with Cap Haitien and Les Cayes respectively (para 1.12). Road transport accounts for more than 80% of all inland transport. -2-

1.06 Haiti's road network was totally neglected during the 1960s, and its deteriorationwas almost complete. This further increasedthe country's spatial imbalance,isolating secondary towns and rural communitiesfrom the capital. Since 1971, the Government has recognizedthe importance'of roads and the need for their upkeep and has reconstructedand improved the road network and rebuilt road maintenancecapacity. Considerableprogress has been made, but many shortcomingspersist in road maintenance,and the institutional structureneeds continuedstrengthening to allow phasing out of technicalassistance.

1.07 The second transportmode, coastal shipping, accounts for approximately 18% of total domestic freight volumes. Although the relative share of coastal shipping is not expected to grow, the volume handled will continue to increase as services are restructuredand modernized following the upgrading of coastal shipping ports.

1.08 The share of air transport in Haiti's total transport volume is comparativelysmall, but it has gained importancewith the dynamic development of Haiti's export-orientedindustries, especially the transformationand assembly industries. Cargo handled by the internationalairport of Port-au- Prince increasedfrom 24,000 tons in 1978 to 28,600 tons in 1980. Air passenger transportincreased from 360,000 in 1978 to 456,000 arriving and departing passengers in 1980. The internationalairport of Port-au-Princeis managed by the National Airport Authority (NAA), and its main runway was recently extended to 3,000 meters. Most df the internationaltraffic is carried by foreign airlines. However, Air Haiti handles internationalcargo transport and, in May 1981, announcedplans for passenger service. Haiti's second airport is situated in Cap Haitien, where a 1,500 m runway was recently paved. Domestic air transportis comparativelyinsignificant. Haiti Air Inter serves primarily tourists and, to a lesser extent, public officialsand businessmen.

1.09 The only existing railroad (75 km) runs from Leogane and the Plaine de Cul-de-Sacto the Haitian American Sugar Company refinery in Port-au-Princeand is used exclusivelyfor sugar cane traffic. It is owned and operated by HASCO. In the 1979-1980harvest year, approximately400,000 tons of sugar cane were moved by this very narrow railway line, in spite of its rather poor condition.

B. Sectoral Developmentand Priorities

1.10 The first Five-YearNational DevelopmentPlan (FY1971-1975)gave priority to the developmentof the productivesectors of the economy, particularly agriculture,but also prepared the ground for economic and technical studies for the reconstructionof the transport infrastructure. Since 1972, Haiti has obtained substantialassistance from multinationalaid agencies for reconstructionof the road network, revival of road maintenanceand improvement of the port infrastructure. Major road reconstructionprojects supportedmainly by IDA and IDB came on stream in 1974.

1.11 Between 1975 and 1977, the Government,with a UNDP grant of US$600,000,contracted a National TransportStudy (NTS) with the American consulting firm L. Berger International. The World Bank acted as executing agency. The NTS recommendeda transport policy adapted to the country's needs and potential, in which priority should be given: (a) to improved -3-

maintenance and selected upgrading and rehabilitation of existing roads; and (b) to coastal shipping improvements to achieve a more even distribution of economic activity between Port-au-Prince and the provincial towns. These recommendations were adopted in the second Five-Year National Development Plan (FY1976-1981) and provided a basis for three IDA projects, including the present one. During this period, about 23% of total public investment expenditures were allocated to transport investments.

1.12 About 450 km of the main road network have been improved, including the two main roads from Port-au-Prince to Cap Haitien and to Les Cayes (with IDA and IDB support respectively), as well as a 40-km branch-off road to the provincial capital of the southwest, Jacmel. In addition, in 1973, the United States Agency for International Development (USAID) started to finance equipment purchases, technical assistance and training in road maintenance and, in 1977, a rehabilitation program of secondary roads. Approximately 340 km of secondary roads have been rehabilitated. Further improvements of old paved primary and secondary gravel roads and the rehabilitation of many bridges are still required. The 1981-1986 Five-Year Plan includes the continuation of the maintenance buildup, the rehabilitation or upgrading of 897 km of gravel roads to paved standards and the improvement of another 1,000 km of secondary roads to good, all weather, gravel standards.

1.13 As far as coastal shipping is concerned, the Government is improving, with IDA's assistance (Fifth Transport Project and Coastal Shipping Port Project), provincial cabotage ports. Upgraded coastal shipping services would, in several instances, allow the postponement of costly road construction projects.

C. Institutional Framework

1.14 The Ministry of Public Works, Transport and Communications (TPTC) is responsible for transport investment, but the Ministry of Finance and Economic Affairs and the Ministry of Planning are also closely involved. The Ministry of Finance and Economic Affairs, assisted by the Governor of the Bank of the Republic of Haiti (BRH), is responsible for monitoring port development and operations of customs services and for the collection of transport taxes; TPTC is responsible for airport operations through the Civil Aviation Service, which regulates air transport and domestic airports. The Ministry of Planning defines national development strategy and reviews, consolidates and coordinates the proposals of various ministries and agencies. In addition to these ministries, two autonomous agencies have been formed in response to particular needs: the National Port Authority (APN) and the National Airport Authority (NAA).

1.15 The responsibilities of TPTC also include public buildings, zoning and construction regulations, city streets and some public utilities. In the early 1970s, the Government faced the problem of initiating the 1971-1976 Plan with inadequate institutional capacity. Following recommendations of external lending agencies, TPTC restructured its organization by grouping various departments into Management, Planning, Support, Executive Operations and Regional Offices groups (Chart I). The resulting institutional framework, however, is somewhat unwieldy and suffers from a number of deficiencies such as duplication of responsibilities on the one hand and gaps in responsibilities on the other. Programing and budgeting are still not done on a sectoral basis, -4-

liaison between agencies and services functionspoorly and routine coordination depends too often on direct action by the Minister or individualdirectors who are particularlyconcerned (para 2.19).

1.16 One of the key departmentsin TPTC is SAT, which is responsiblefor establishingcriteria for road constructionand maintenance,physical and economic planning and the definition of transportpolicies (para 2.14). SAT was establishedin December 1975 and acts as a sectoral planning unit and a highway planningand engineeringoffice. Its responsibilitieswere defined by law in January 1977.

1.17 The Executive Operations group has three departments: a Construction and Works SupervisionDepartment, an Urban Streets Department,and the National Road MaintenanceDepartment (SEPRRN). The most importantsection of the Support Services group is the National Laboratory for Buildings and Public Works (LNBTP). TPTC also has a programingunit.

II. THE ROAD SUBSECTOR

A. Road Network

2.01 Haiti's national network of inter-cityroads consists of approximately 2,750 km of motorable roads, of which some 576 km are paved and the remaining 2,174 km are gravel-surfaced(Table 2.1). In addition, there are numerous earth roads and non-motorabletracks, used by vehicles and/or pack-animalsand pedestrians,which are not part of the national roadnet. Even though much of the main network has been built or upgraded recently, some primary and several secondaryroads are in poor conditionand need strengthening or improvement. Improved road maintenancehas, to some extent, checked further road deteriorationand restored some measure of serviceability; however, special attentionshould be given to repair and rehabilitationof bridges, drainage structuresand fords.

2.02 Haiti has a large number of aging steel and concrete bridges. The country also has a large number of water crossingswithout any structure where vehicles,donkeys and people ford the rivers during low water; delays due to high water are frequent. Many were built more than fifty years ago and, today, are in a precarious condition; some of the older bridges require major repair works, and several concrete fords have to be replaced. During the last year, traffic on several primary and secondary roads has frequently been interruptedby failing drainage structures.

2.03 The repair/reconstructionof existing bridges and the provisionof new ones at importantcrossings would be a necessary complementto the ongoing rehabilitation,maintenance, and rural road programs. Besides the recently constructedNorthern Road, the primary network includes a number of aged paved roads. Their timely rehabilitationand strengtheningis a needed complement to the ongoing maintenanceprogram. The study necessary to prepare a road and bridge reconstructionprogram was conductedunder the Fifth Transportation Project (Credit 807-HA, 1978). 2.04 The highest priorities in the road transport sector are maintenance and rehabilitation of existing roads and bridges. These priorities, together with the Government policy of promoting the growth of provincial agglomer- ations outside the Port-au-Prince area, are reflected in the road component of the current draft Third National Development Plan (1982-1986), as well as in the 1982-1986 Five-Year Plan of TPTC.

B. Characteristics of the Vehicle Fleet and Traffic

2.05 Although statistics on vehicle registration are not very reliable, Haiti's motor vehicle fleet, excluding army and Government vehicles, is estimated at some 38,000 units, of which approximately 90% are registered in Port-au-Prince (Table 2.2). This figure corresponds to a vehicle ownership of less than seven vehicles per 1,000 inhabitants, the lowest in the entire Latin America and Caribbean Region. While the NTS estimated a net growth rate of 10% for the period 1970-1975, vehicle registration grew at a rate of about 12.5% p.a. during the period 1975-1980, but the growth rate in the second half of the period was more than 17% per annum. Some 27% of the fleet are trucks and pickups serving private and public transport; 12% of them are used for passenger transport, and about 30% of the cargo vehicle fleet is used for the mixed transport of passengers and cargo. Imports of new and used vehicles have increased steadily in recent years. In the last decade, approximately 31,000 vehicles have been imported, almost 13,000 of them during the last three years in spite of little growth in imports of commercial vehicles (Table 2.3).

2.06 Port-au-Prince is the center of the road transport system. According to an origin-destination survey carried out recently on the main road network by SAT, 84% of all vehicles, which carried 75% of total freight volume and 80% of total passengers, had their origin or destination in the capital. This is consistent with the origin-destination surveys executed in 1975 during the NTS and suggests that the polarization on Port-au-Prince has accelerated. It is estimated that about 50% of the network carries less than 20 vehicles per day (VPD), 10% carries between 20 and 100 VPD, 25% between 100 and 300 vehicles and 15% of the network carries more than 300 vehicles. Probably half of the country's goods transported are carried by human portage and pack animals, mostly along country trails and secondary and tertiary roads.

2.07 The results of recent traffic counts along the newly reconstructed primary roads show traffic growth during the first years of service of 15 to 20%, which is well above previous trends and suggests an important increase in generated traffic. The NTS projected long-term traffic growth rates ranging between 4 and 8% annually for goods and public passenger transport and about 11% for private vehicles. Recent growth forecasts for selected secondary roads on a medium-term basis average about 6% for transport of goods, about 7% for public passenger transport, and 9% for private vehicles.

C. Road Transport Industry

2.08 Haiti's road transport industry is subject to only a minimum of regulation. Inter-urban tariffs for passengers and freight are competitive, and entry into the road transport industry is free. In the past, most enterprises offering urban transport services for passengers and freight were owner-operated one-vehicle enterprises. Recently, however, there has been a tendency toward concentration of ownership. There are a few firms operating -6- comparatively small truck fleets which act mainly as haulers for the construction and other industries. A few industrial enterprises operate their own small truck fleets. Credit for commercial operators is available through banks and dealers, but at fairly high rates of interest. The only requirement for transport enterprises is a formal registration with the police, who issue special license plates; there is no restriction on licensing. Third party insurance is compulsory for all vehicles in Haiti, but coverage is reportedly considered unsatisfactory by users.

2.09 Urban transport and its tariffs are also largely unregulated. Hcwever, taxi service in Port-au-Prince operates with standard tariffs set by the Depart- ment of Labor and enforced by the police. Urban public transport in Port-au-Prince is dominated by small buses and "tap-taps" which generally operate on a fixed line-haul and stop wherever passengers so wish. Since autumn 1980, one public state-owned bus company, CONATRA, has been operating in Port-au-Prince in competition with privately owned public transport vehicles.

2.10 UNDP preinvestment studies carried out in 1971 and 1973 recommended, inter alia, that speed, weight and dimensions of vehicles be regulated in accordance with AASHTO standards, and also made recommendations on the installa- tion and operation of weighbridge stations. The three IDB-financed Southern Road projects (1974-1980) included technical assistance to introduce axle weight regulations and to prepare the necessary legislation. Load surveys of the NTS suggested that, at the time, overloading was not a serious problem, mainly because the poor-condition of many secondary roads acted as a deterrent. However, the improved condition of recently reconstructed primary roads and the competitive situation of the road transport industry have led to increased overloading.

2.11 In compliance with covenants agreed with IDB and with IDA under Credits 478-HA and 556-HA, the Government, on January 2, 1978, enacted legislation defining limits for vehicle weight, dimensions, and axle loads consistent with the structural and geometric design of the road. The decree requires that the following limits be observed: 8,000 kg for single, and 15,000 kg for tandem axles, and 40,000 kg for total loaded vehicle weight; it stipulates the following fines for overloading: US$40 equivalent for axle load violations and US$60 for total weight violations. TPTC, through the Haitian police, is in charge of enforcement.

2.12 Weighing scales have been installed on the Southern Road, and portable scales have been used on the Northern and other roads. Recently, the Government has been unable to keep its rixed and some mobiie weighing equipment in operational condition. The existing axle load limits are relatively low, and a small increase may be justified given the technical characteristics of trucks available on the international market. However, this matter should be studied carefully, taking into account the load capacity of Haiti's road system as well as ongoing work on the same matter now taking place in the neighboring Dominican Republic. Pending discussions on increasing axle load limits, the Government relaxed enforcement of axle load and total weight limits.

2.13 At negotiations, the Government agreed to take all steps necessary to ensure the enforcement of its regulations concerning axle load limits and vehicle dimensions and not to modify, suspend or grant exemptions to any such -7- regulations without a prior exchange of views with IDA. It is necessary to overhaul the system for vehicle weight control, and the Government has already commissioned consuLtants (joint venture Setec, France, and Sohico, Haiti) to review the existing vehicle weighing system as a compiement to the ongoing road rehabilitation study. The consultants have determined locations where permanent weighing stations should be operated based on traffic volumes and vehicle types, and are preparing recommendations for support facilities for the handling of overioaded vehicies. The consuitants have also recommended revisions in current regulations, in particular the introduction of a more effective system of sanctions relating the amount of fines to the seriousness of the overioading. The project inciudes a component to finance purchase of new vehicle weighing equipment which would be installed at weighbridge stations throughout the country. Adoption of a more effective system of sanctions as part of the program of control of weight and dimensions would be a condition for effectiveness of the Credit Agreement.

D. Administration

2.14 Highway administration is the responsibility of TPTC. As explained in paragraph 1.15, TPTC's departments are organized in five groups: Manage- ment, Planning, Support, Executive Operations, and Regional Field Offices (Chart I). The departments primarily concerned with highways are: (a) Service Autonome des Transports (SAT), responsible for planning and engineering; (b) the Construction and Works Supervision Department (SCS), responsible for contracting and supervision of civil works; (c) the Service d'Entretien Permanent du Reseau Routier National (SEPRRN), the Permanent National Road Maintenance Department; and (d) the National Laboratory for Building and Public Works (LNBTP) responsible for testing of materiais and standards. Coordination and flow of information between departments are not optimal, and, as a result, integrated planning is rather deficient; actualiy, day-to-day coordination of work often depends upon direct action by the Minister (Secretary of TPTC).

2.15 More than 200 engineers, architects, and economists are empioyed by TPTC out of a total of 1,350 employees, and most are assigned to SCS, SAT, SEPRRN, LNBTP and the Urban Roads Department. The majority of the engineers are graduated from the Polytechnic Schooi or the University of Port-au-Prince; several have studied or received additional training and experience overseas, mostly in the USA or France. On principle, these technicians should provide TPTC with adequate professional expertise and management capacity; however, because of the lack of incentives resulting from relatively low salary levels and poor management procedures, a number of TPTC's professional staff, engineers, and technicians share their professional time between TPTC and other occupations.

2.16 LNBTP provides, at estabiished rates, materials testing support services for design, construction, and maintenance of all civil works, including construction. It is financially autonomous and provides training courses for TPTC inspection staff. LNBTP receives support from the French foreign aid agency (FAC) in the form of technical assistance by the Centre d'Etude du Batiment et des Travaux Publics (CEBTP). Until 1980, CEBTP provided one engineer holding the position of co-director. At present, the French engineer serves in an advisory capacity. -8-

E. Planning and Engineering

2.17 Transport planning, programirng,project evaluation and highway engineering design constitute the main functions of SAT, which was created in the context of IDA's Third and Fourth Highway Projects. SAT is in charge of transport sector inputs for the planning and programing of highway improvements and expenditures, preparation and evaluation of transport regulations, and the systematic collection of traffic data. As intended by the organizational structure and the staffing of SAT, feasibility studies, planning, engineering and design for major road projects are almost exclusively performed by consultants (mainly foreign) under SAT's supervision. In recent years, US-educated Haitian engineers have founded small domestic engineering firms which also participate in project preparation. It is expected that more routine engineering work would be given by SAT to these domestic firms, if necessary, in association with foreign consultant firms.

2.18 Since its establishment, SAT has been involved in the preparation of transport data for the current Five-Year National Development Plan (1976-1981) and the proposed 1982-1986 Development Plan. SAT conducted one origin-destination traffic survey in 1977 and two project specific traffic counts in 1980 and 1981, both covering only a part of the country's main rcad network.

2.19 SAT needs to improve its programing and budgeting activities as well as its collection of traffic and transportation data. Traffic counts have not been executed annually, and on a comparative basis, as was intended. USAID has provided transportation planning experts for a period of ten months to assist SAT with the development of an Economic Analysis Unit. The objective was to organize and train the unit in data collection for the transport sector contribution to the National Development Plan and to prepare and analyze data needed by financing agencies for individual projects. The work program of SAT over the project period was reviewed and agreed during negotiations (Annex 1).

F. Feeder Road Development

2.20 Feeder roads have been constructed mainly with the financial assistance of USAID and the technical assistance of consultants (TAMS, USA) since 1977. The program operated two labor-based and two mechanized brigades, each 350 men strong. Work was coordinated by TPTC. Each brigade was capable of constructing some 3-4 km of rural roads per month with tools and equipment furnished by USAID. TPTC carried the salary cost of personnel employed by .ht brigaus adnd recurrent expenses necessary for the operation of equipment; SEPRRN maintained equipment used by the brigades. In terms of total kilometers constructed, the project was only partially successful because of budgetary constraints on the part of TPTC.

2.21 The need to overcome the isolation of outlying areas and to extend the benefits of developments in agriculture to regional centers has resulted in increased demand for rural road construction. USAID is financing a followup three-year, about US$18 million, labor-intensive program (1981-1984), including technical assistance to construct some 700 km of rural roads. IDB confirmed its commitment to continue the development of labor-intensive construction. -9-

IDB would initiate construction of 179 km of rural roads in the Southern Peninsula before the end of 1982, and is also financing a 16-month study for the design of 140 km of rural roads in the Artibonite Valley.

2.22 IDA is already financing construction of some rural roads under the First Rural Development Project (Credit 675-HA), and construction has been carried out by TPTC forces.

2.23 Feeder road planning and construction represent one area which is clearly in need of coordination. TPTC intends to consolidate responsibilities for various feeder road programs under a new Department of which the existing Feeder Road Unit would be the nucleus. During negotiations, the Government confirmed that, for the purpose of developing consistent standards and methods of execution, it would exhange views annually with IDA on measures to ensure adequate coordination among units charged with planning or carrying out construction of feeder roads.

G. Construction and Construction Industry

2.24 Most highway construction is carried out by international contractors or by Government work forces. Prior to 1955, United States contractors were employed in the reconstruction of the network, which was first built before 1935. During the 1955-1972 period, no major road reconstruction was undertaken. Small scale works were executed by Government forces, which further eroded the strength of the local private road construction industry. Since the resurgence of highway construction activity in 1972 and until 1979, all major road construction projects have been awarded to foreign contractors (French, Canadian, and American) with limited participation of local firms through subcontracting. In 1979, part of a major road reconstruction contract on a Bank-financed project (Cr. 807-HA - US$10 million, February 1978) was awarded to a Haitian-American consortium.

2.25 Costs of highway construction by foreign firms are high because of the small size of the market, high mobilization costs and high perceived risks. The need to foster a competitive local construction industry has been recognized since the appraisal of the Third Highway project in 1974. This led to the inclusion of a survey of the construction industry in Haiti, within the NTS report. The situation analysis presented in that report is still valid today: the domestic construction industry is small and incipient, and the market continues to be dominated by foreign contractors, with Haitian firms doing mostly building and minor structural work.

2.26 The NTS report correctly identified the lack of skilled personnel as a key problem of the domestic construction industry. Only two local companies profited from the NTS recommendations and undertook their own enhancement and technology transfer through associating with foreign firms. There is no establishment training system for the industry, and there is a dearth of vocational training facilities. First priority must therefore be given to overcoming these shortcomings. - 10 -

2.27 The construction industry chapter of the 1977 NTS report will be updated and complemented by consultants (para 4.18), leading to the preparation of action plans for strengthening the domestic construction industry, with particular reference to training at all levels. Outline terms of reference for this study are attached in Annex 2. The study would also include an appraisal of the current state of development of labor-intensive road construction and maintenance technology in Haiti, and an evaluation of the assistance required by Haiti in this area. Ongoing feeder road programs would also evolve and generalize labor-intensive construction methods. They would specifically address the problems of defining proper technical, organizational and funding arrangements for the contracting of such works (para 2.23).

2.28 With regard to the construction, rehabilitation and repair components of the Sixth Highway Project, Haitian firms should predominate in the tendering for most of the bridge rehabilitation and repair work. The program for rehabilitation of the main Port-au-Prince - Cap Haitien (North) road should attract foreign companies, as well as the two Haitian firms which would be capable of handling major works with the support of their foreign associates.

H. Supervision of Construction

2.29 TPTC's Construction and Works Supervision Department (SCS) is responsible for the management and supervision of construction. SCS was formed, with IDB's support, in 1974, to coordinate, standardize and manage the work of consultants entrusted with the supervision of civil works on large construction contracts and to initiate TPTC's participation in the supervision of construction of the Southern Road. While the Construction Department has since gained valuable experience and continues to develop its capabilities to provide required institutional support, TPTC will continue to rely upon experienced consulting firms for the management and supervision of large civil works contracts with increased participation of Haitian consultants and SCS personnel.

I. Maintenance

2.30 Bank Group support for road maintenance in Haiti dates back to 1956 when the Bank granted its first loan of US$2.6 million to finance a Maintenance and Rehabilitation Project (Loan 141-HA) comprising reorganization and expansion of the highway maintenance organization, and road rehabilitation and maintenance of about 1,000 km of roads. In 1962, an IDA Credit of US$350,000 was made for the Interim Highway Project (Credit 32-HA) to finance the foreign cost of completion of the road maintenance and rehabilitation works started under the 1956 project. In 1959, the Government estabiished a "Service Special d'Entretien et d'Amelioration des Routes," but improvements were shortlived and road maintenance practicaily ceased after 1963, resulting in the rapid deterioration of the road network and the isolation of food-producing regions from consuming centers. In 1972, the Government recognized the need for a completely new maintenance organization and created the Permanent National Road Maintenance Department (SEPRRN) as an autonomous agency solely responsible for road maintenance. In 1973, USAID supplied Haiti with US$3.15 million in loans and US$1.78 million in grants to finance an agreed maintenance program, including technical assistance, rehabilitation of maintenance workshops and reconditioning of existing equipment and purchasing units. In 1975, SEPRRN prepared, and the Government approved, a Five-Year Maintenance Program for the 11 -

period 1976-198i which was supported by adequate budgetary allocations (Table 2.4). In i977, the Government obtained from USAID an additional grant of US$8.6 miliion to finance advisory services for in-service training of personnel and acquisition of equipment to pursue the expansion of SEPRRN's capacity.

2.31 SEPRRN's budget is separate from that of TPTC and is partly funded with allocations from the investment budget. Estimated budgetary requirements for the proposed 1982-1986 maintenance program have been reviewed and approved in principle by the Government. The 1982 budget was formally approved.

2.32 SEPRRN owns some 400 units of equipment with replacement value of US$8-9 million, which, according to consultants PRC Harris, USA, is about 30 units beiow requirements for the programed expanded maintenance capacity. About 37% of the presently owned equipment was manufactured in 1976 or before, and some 20% was received from US Army surplus; this equipment requires frequent maintenance. Average fleet utilization 1/ stands at 70%, which is relatively acceptable but could be improved given the level of funding of SEPRRN. SEPRRN will need to replace about one-half of its fleet between 1981 and 1984. USAID has indicated that it was involved in maintenance equipment purchases only on an exceptional basis and that it will be unable to help in the financing of the new equipment that SEPRRN now needs. IDA has indicated to the Government that it considers adequate provision for road maintenance a precondition for further lending in the road subsector. It has also indicated that it would consider financing road maintenance equipment only if an attempt is made to balance the road maintenance effort between capital- and labor- intensive technology. Direct involvement by IDA in maintenance is supported by the standing policies (a) to maintain the autonomous status of SEPRRN, in particular its separate funding under the investment budget; and (b) not to involve SEPRRN in road construction, with the possible exception of using SEPRRN workshops to maintain, at cost, equipment used in feeder road construction to avoid costly duplication of effort.

2.33 SEPRRN's organization is shown in Chart II. It operates ten field workshops and a weli equipped central workshop in addition to well equipped spare parts facilities in Port-au-Prince (Chart III). The central workshop does all major overhaul work and is well managed. The remaining five district workshops perform preventive maintenance and routine repairs, excluding major overhauls. The subdistrict workshop facilities are limited to minor repairs. SEPRRN's total utilization of its equipment fleet is about 70%.

2.34 Both the district and subdistrict workshops of SEPRRN also service the small lot of construction and maintenance equipment assigned by TPTC to its regionaL offices because the Ministry's own facilities, except for its main workshop in Port-au-Prince, are not operational. Even TPTC's workshop in the capital will eventually be phased out or reduced to a maintenance shop for passenger cars, and the Government is seeking a solution for the reassign- ment of some of TPTC's main workshop personnel.

1/ See paragraph 4.06 for definition. - 12 -

2.35 SEPRRN employs about 3,000 people including28 engineers;its fielic personnel is organizedinto 142 maintenancebrigades comprisingsix intervention brigades which carry out periodic maintenance,12 grading and 90 hand brigades for routinemaintenance, 28 asphalt brigades for pavement patching,and six bridge brigades for \theroutine and periodic maintenanceof structures. Compositionof these brigades and their assignment to the six districts and five subdistrictsresponsible for road maintenancethroughout the country are shown in Table 2.5. Assignment of maintenance equipment to the brigades is shown in Table 2.6.

2.36 SEPRRN'smaintenance activities show a predominanceof expenditure for labor: payrolls account for 52% of total monthly expenditures. Mechanized interventionbrigades average about 30 laborers, and grading brigades about 15 laborers,who are employed in removing debris from the road and who perform other tasks before and after equipmentis used. SEPRRN will be encouragedto continue its efforts to increase the labor input in road maintenanceand to enhance the ongoing program for maintaining road sections with labor provided by neighboringcommunities. In 1980/1981,about 75 km of rural roads were maintained by ten communities,which were paid the equivalentof US$702 per km/year. SEPRRN furnished the hand tools, the materials (stockpiledalong the roads as required),a small roller, and an experiencedforeman with a motorcycle to facilitatehis movementsbetween the crews he supervises. Overall supervision of this work is carried out by a SEPRRN engineer. Following initial encouragingresults, SEPRRN will contract the maintenanceof a total of 250 km of rural roads to communitiesin 1982. The contract rate will be adjusted to the equivalentof about US$1,100 per km/year.

2.37 SEPRRN has systematicallyexpanded the maintained network from about 1,450 km in 1979 to about 2,000 km in 1980 (includingall existing paved roads), with the final objective of maintainingthe 3,700 km that will be part of the National Network in 1985/1986 (Table 2.1). Evidence of maintenancecan be observed on many roads; in 1978/1979,SEPRRN carried out 69% of its planned maintenancefor gravel roads and 77% for paved roads. Correspondingresults in 1980/1981were 77% of planned maintenancefor gravel and 91% for paved roads. SEPRRN is still in the process of building up its capacity and will require further external support. USAID continues to support the development of SEPRRN by providingtechnical assistancethrough 1986, but will not be able to finance equipmentrenewal (para 4.02).

2.38 Currently, SEPRRN'swork is not limited to routine or periodic maintenance: poor conditionof much of the existing network requires that deterioratedroads be rehabilitatedby SEPRRN before routine maintenancecan be programed. Since SEPRRN has not yet establishedcost breakdowns for each category of maintenance,its average costs for routine and periodic maintenance of gravel roads, combined with rehabilitationwork, are high (US$3,600/km) because of the high amount of repeated regravelingand rehabilitationrequired as a result of the poor drainage condition of large portions of the secondary network in mountainousareas. The proposed project will be used as a vehicle to redress this situation. - 13 -

J. Financing and Energy Pricing

2.39 Annual expenditures for TPTC's personnel and administration are financed from the country's general budget. Investment works and operating expenditures for SEPRRN are financed partly from abroad. Yearly expenditures for the highway sector in FY76 to FY80 averaged approximately US$51.7 million, of which some 90% were for investments (including preinvestment studies and technical assistance). Approximately 59% of these investments have been externally financed, and the major portion was used for the construction of 410 km of national roads (Table 2.7).

2.40 Government revenues from road user charges have increased considerably from about US$5.5 million in 1974 to approximately US$15 million in FY80 (Table 2.8). The increase is due to the substantial growth of traffic during the last years as well as to the mounting import duties, mainly on petroleum fuels, cars and tires. Road user charges have been generally sufficient to finance the maintenance expenditures and to contribute to investments in the road sector; however, increased participation of the road user in the cost of building and maintaining the network is necessary.

2.41 CIF import prices for gasoline and diesel are US$1.043 and US$1/US galLon respectively. The consumer prices of these locally consumed fuels, particuLarly gasoline, are high in comparison with levels in the U.S. and other Latin American countries but low in comparison with levels of European countries and other developing countries. As of March 1981, the retail price per US gallon for gasoline in Port-au-Prince was US$2.15, but the price for diesel was only US$1.17. This gasoline price includes USi86.4 in taxes (import duty and excise tax), but there are no taxes on diesel.

2.42 Taxes on automotive fuels serve two objectives: (a) rationaliza- tion of the use of energy, which results in savings of foreign exchange in a country totally dependent upon imported oil; and (b) participation of the road user in the cost of building and maintaining the network. Under Haiti's current tax structure, neither objective is being realized. Since taxes are levied only on gasoline, the system creates an incentive to increase the number of diesel-fueled cars and, thus, to avoid the tax altogether. The change in the composition of the Haitian fleet has already progressed considerably, and, as shown in Table 2.9, almost 50% of the automotive fuels consumed for road transport in 1979 consisted of dieseL. This trend is likely to accelerate as a result of the tax increase on gasoline, decided in March 1981, which enlarged the price differential between these two fuels from USJ63 to USg98/gallon at the retail level (Table 2.10). The USg86.4 tax differential is causing distortions in the choice of road vehicle type and is making existing gasoline vehicles obsolete more rapidly than necessary; diesel-driven road vehicles are not paying taxes sufficient to cover their share of road deterioration and maintenance costs; simiLar distortions in the choice of fuel are being encouraged in non-transport sectors.

2.43 IDA missions have indicated to the Government that the reduction of the price differential by imposing a similar tax on automotive diesel as the one on gasoline would be beneficial. As much as 332,000 barrels - 14 - of diesel are consumed annuaily in Haiti for road transport. This amounts to more than 13 miiiion gallons, or a potential annual revenue of up to US$13 million, which would be sufficient to double the road maintenance effort, take care of a substantial amount of rehabilitation and increase other road investment if channeled to this purpose in 1985 and 1986 (Table 2.4). The Government has recognized the need to apply adequate taxation on diesel through a gradual increase in retail prices. The Government agreed with IDA during negotiations to increase, beginning in 1982, the tax on diesei fuel in order to eliminate the difference between such tax and the tax on gasoline by the end of 1983 (Table 2.11). The initial increase of USJ20 equivalent per gallon was introduced in early March 1982.

III. PAST AND ONGOING IDA ASSISTANCE TO THE ROAD SUBSECTOR

3.01 The Bank Group has made one loan and extended five credits to Haiti for transportation, beginning in 1956, for a total amount of about US$59 million, US$56 million of that amount since 1972. The road transport subsector has been the main objective of Bank Group assistance, although its last two credits, extended in 1978 and 198i, also inciuded coastal shipping components.

A. Past Projects-

3.02 The Bank Group's involvement in Haiti's transport sector began with a Bank Loan (Loan 141-HA, US$2.6 million, 1956) for a Maintenance and Rehabilitation Project which involved about 1,000 km of roads. The second operation (Credit 32-HA, US$350,000, 1962) was an Interim Highway Project to complete works undertaken under the first project. Political and managerial problems hampered the timely implementation of these projects.

3.03 The changed economic environment in the country since the early 1970s made it possible for IDA to resume its support for the transport sector. The reconstruction of the Northern Roads (250 km), including emergency reconstruction of the.Estere, Sonde and Limbe bridges under the Third and the Fourth Highway Projects (Credits 478 and 556-HA, 1974 and 1975, US$10 and US$20 million respectively), had accomplished the principal objective of providing all weather access between the principal port in the Northern Region, Cap Hatien, and the capital, Port-au-Prince, as well as linking the Artibonite Valley to the main food-consuming centers. The projects also financed the much needed NTS and provided support for efforts leading to the legislation of controls of vehicle weights and axle ioads.

3.04 A Project Completion Report (PCR) and a Project Performance Audit Report (PPAR) for both the Third and the Fourth Highway Projects, dated May 27, 1980, were circulated on May 30, 1980. The PCR found reestimated economic returns of 25 and 41% respectively, against 20 and 35% expected at appraisal, in spite of construction cost overruns, mainly due to considerably higher growth rates in traffic (in some cases as much as 230% higher) and higher vehicie operating cost savings for heavy vehicles. The PPAR indicates that there were some differences of opinion between the Government and IDA about the design standards to be used, especially in relation to the bearing capacity of the pavement. In view of the limited funds available, the Association insisted that the road be rebuilt to modest standards, conforming to the needs - 15 - of the traffic anticipated in the near future. The prime objective of the Third and Fourth Projects was to rebuiid the whole length of the road to reestablish reliable communications between Port-au-Prince and Cap Hatien, the regional capital of the Northern region. It was anticipated that strengthening of some sections would be needed within the first ten years of service of the road. The Government, although initially inclined to adopt higher standards, agreed with this approach. The Government undertook to instail and operate weigh scales to check overioading. Full implementation of this undertaking was deiayed (para 2.13). Once the road was completed, traffic developed much more rapidiy than anticipated, with a high proportion of trucks. Axle loads were also substantiaiiy higher than anticipated because of the introduction of heavy trucks and the prevalence of overloading. This situation has led to the need for strengthening of certain sections earlier than anticipated (para 4.13).

B. Ongoing Project

3.05 The Fifth Transport Project, now practically completed (Credit 807-HA, US$15 million, 1978), comprises a road and bridge component and a coastal shipping component. The road and bridge component essentially provided for the upgrading and paving of 54 km of roads in the Northern Plains region, a feeder road to the port of Jeremie, and the reconstruction of two major structures, the Hyppolite and the Three Rivers Bridges. The coastal shipping portion includes a pilot port project which provides new terminals for shallow draft vessels at Port-au-Prince, Port-de-Paix and Jeremie at a total cost of US$3.5 miiiion.

IV. THE PROPOSED PROJECT

A. Objectives and General Description

4.01 The objectives of this project are to foster execution of high priority road and bridge maintenance and rehabilitation works prepared under ongoing projects of IDA and other externai ienders, mainly USAID (maintenance, training and rural roads) and IDB (secondary roads and upgrading of primary roads), and to continue IDA's long-term program of institution- building in the subsector.

4.02 The project comprises:

- acquisition of equipment for renewal and expansion of SEPRRN's existing fleet to carry out routine and periodic road maintenance and rehabiiitation inI accordance with the 1982-1986 Five-Year Maintenance Program (para 4.05);

- carrying out of a program of control of weights and dimensions of vehicles, including the procurement and operation of weighing equipment and the diligent enforcement of laws and regulations governing such control; - 16 -

rehabilitation of 57 bridges and other drainage structures;

rehabilitation and strengthening of 100 km of the Northern Road; and

a technical assistance component for studies of maintenance technology and of the domestic construction industry and for auditing of the project accounts kept by TPTC and SEPRRN.

B. Maintenance Component

(i) The 1982-1986 Maintenance Program

4.03 Over the last five years, SEPRRN has developed a systematic approach to the planning, scheduling and control of its annual maintenance programs,. Appropriate maintenance procedures were defined, tested and implemented in all the districts and subdistricts (para 2.30). The following targets were accepted for the program:

1982 1983 1984 1985 1986

Physical Targets (in km and %)

Paved network (km) 609 637 671 694 699 Percent maintained 1/ 100 100 100 100 100

Gravel network (km) 1,800 1,950 2,150 2,400 2,700 Percent maintained 85 95 95 100 100 Kilometers maintained 1,530 1,755 2,040 2,400 2,700

Earth network (km) 438 414 368 327 317 Percent maintained 85 90 95 100 100 Kilometers maintained 370 370 350 327 317

Budgetary Targets (in US$ Millions) 2/

Type of Operation

Routine 4.4 4.7 5.1 5.5 6.0 Periodic 4.1 4.4 4.8 5.2 5.7 Subtotal 8.5 9.1 9.9 10.7 11.7

Rehabilitation 1.0 3.1 4.5 4.6 4.6

Total 9.5 12.2 14.4 15.3 16.3

1/ Total maintenance requirements presented in Table 2.1. 2/ Table 2.4. - 17 -

4.04 The physical targets for 1982-1986 are based on past performance and current equipment constraints. Programing of maintenance work would initialiy give priority to paved roads and then to gravel roads. A number of earth roads would also receive a gravel surface which, together with rehabilitation and new construction, wouid expand the gravel road network to some 2,700 km by 1986 from 1,800 km in 1982. Full scale maintenance of the all gravel roads would be achieved in 1985.

(ii) Maintenance Equipment Requirements

4.05 Based on a review of its equipment inventory, SEPRRN prepared a list of aging road maintenance equipment which will need replacement to carry out the 1982-1986 Five-Year Maintenance Program. Furthermore, limited additions to SEPRRN's list are necessary to meet 100% of the requirements for periodic maintenance by 1983 and for routine maintenance by 1984. A summary of SEPRRN's equipment needs is shown in Table 4.1. The increased capacity would also permit SEPRRN to maintain the national highway network at an improved level of service (para 2.37). Equipment procurement would be made in two tranches. IDA's approval f or the purchase of the second tranche would be given only after a detailed review of maintenance methods to determine the possible scope for increased reliance on more appropriate labor-intensive technology (paras 4.17 and 4.29).

4.06 Based on present 70% equipment availability, the targets adopted by SEPRRN concerning equipment utilization and availability are indicated below and would result in total average utilization of 80%. They reflect anticipated improvements as well as the relatively low average age of SEPRRN's equipment after replacements are made under the project.

Target %

Equipment availability 85 Utilization of available equipment 95 Total fleet utilization (85 x 95) + 80

4.07 The Government confirmed at negotiations that SEPRRN's equipment would be used only to carry out an agreed program for routine and periodic maintenance, exciuding SEPRRN from participation in road reconstruction, which would be contracted to private contractors. The Government also confirmed that the availability and utilization of SEPRRN's equipment fieet and the required percentage of total network to be maintained each year would be monitored on a continuing basis and assessed annuaIly by comparison with the above norms. The Government additionally confirmed that equipment management, including systematic planning of renewal overhaul and scrapping, would be discussed with the Bank at the time of review of SEPRRN's annual maintenance program and that it would do all in its power to achieve continued technical assistance financed by USAID. Assurance has been obtained only for one year. If such assistance would not be forthcoming in subsequent years, it might have to be financed under the proposed project. - 18 -

(iii) Control of Overloading

4.08 The only permanent weighbridge station in Haiti, which is located on the Southern Road, is equipped with a conventional mechanical balance. However, this equipment breaks down frequently; spares for its repair are not easily available, and the equipment's downtime is considerable. On other roads of the national network, including the Northern Road, axle loadings are checked with small portable equipment. The Northern Road carries high amounts of heavy traffic, and portable weighing equipment may be insufficient to analyze overloading. Control of vehicle and axle loadings for compliance with legaLl limits is precarious (paras 2.11-2.13), and the Government agreed during negotiations to carry out a program of control of weights and dimensions of vehicles, including the procurement and operation of weighing equipment and the diligent enforcement of laws and regulations governing such control, and to furnish to IDA quarterly reports on the status and progress of the program starting in July 1982.

C. Bridges and Other Drainage Structures Component

4.09 An engineering/economic study was prepared under the Fifth Trans-port Project by consultants DIWI (Germany) to provide an overview of the problem of bridges and structures and to recommend a five-year program for the rehabilitation and repairs of the existing bridges and construction of new bridges, box culverts and concrete fords (para 4.02). A total of 350 different drainage structures was inspected and evaluated, of which 100 were bridges. Only 19 bridges were found in good condition; 31 require minor repairs and 35 intensive repairs; 15 bridges need to be replaced. Because of funding constraints, only the first share of the program would be accommodated under the project i.e., 57 structures, including six new bridges and a 2-km road section (Gimbale bypass) to eliminate the need to replace two fords with bridges and replacement and/or repair of 51 culverts and concrete fords. These structures are listed in Table 4.2 and are shown on Map IBRD 15894R.

4.10 The detailed engineering of the structures included under the project, and of ten additional structures (Table 4.3) which would form the subsequent phase of the program, is presently being carried out by local consultants under DIWI's supervision. This preparation work is being financed through a Project Preparation Facility of US$300,000 extended to the Govern- ment on August 21, 1981. Funds advanced under the Facility would be refinanced out of the proposed credit. The engineering, which would be completed by the end of March 1982, provided a basis to update the cost estimates.

D. Road Rehabilitation Component

4.11 This priority rehabilitation and strengthening program of some 100 km of the Northern Road (Port-au-Prince to Cap Haitien), reconstructed to minimal standards under the Third and the Fourth Highway Projects (Credit 478-HA and 556-HA, US$10 and US$20 million, 1974 and 1975 respectively), was prepared by the joint venture of consultants Setec (France) and Sohico (Haiti). It consists of strengthening and improvement of a 56-km mountainous section between Passe Reine and Roche Halame and an additional 1.5 and 2.7 km in the Coupe Limbe and Morne Anglais areas respectively; and spot repairs and surface dressing of two adjacent sections (39.4 km) between Gonaives and Passe Reine and between Roche Halame and Cap Haitien (Map IBRD 15894R). - 19 -

4.12 The present pavement structure was designed based on the then existing low traffic leveis and traffic growth forecasts and the iimited resources available for the project. 1/ The section from Port-au-Prince to a point 90 km north of it was constructed with a iight bituminous concrete surface 4 to 6 cm thick; the remaining 160 km has a double surface treatment. Existing pavement width varies from 6.5 m in fiat and rolling sections to 6.0 m in the mountainous sections between Gonaives and Cap Haitien where grades of 8-10% are common and the alignment is quite winding. When the Northern Road was paved over the period 1975 to 1977, the quaiity of the works was, with isolated exceptions, found to be satisfactory and in accordance with agreed design and specifications. The design was predicated on maximum economy in construction. It was envisaged that sections of the road where traffic growth would be more rapid than expected would need strengthening within ten years. The road has been opened to traffic since i976, and the combination of higher-than-projected traffic and overloading has led to the need for early pavement strengthening (para 3.04).

4.13 At the time of preparation of the Third and Fourth Highway Projects, annual traffic growth was estimated at 5-7%, and, based on the selected engineering criteria, pavement resealing and resurfacing would have been needed every six to seven years. After the road was opened, traffic grew more rapidly than anticipated and, at present, reaches 2,500 vpd north of Port-au- Prince, 600-800 vpd aiong the centrai coastai section south of Gonaives, and some 300 vpd on the least trafficked northern section between Gonaives and Cap Haitien. Current traffic levels are 50% higher than those projected at appraisal in May 1978. Truck and bus traffic is especially heavy on the central section (270 vpd) and the north section (i50 vpd).

4.14 A detailed technical economic study was carried out by consultants Setec (France) and Sohico (Haiti) on some 553 km of paved roads, inciuding the Northern Road (Port-au-Prince to Cap Hatien, 250 km), the Southern Road (Port-au-Prince to Cayes, 180 km), the Jacmel Road (connecting the South Road to Jacmel, 43 km), the Mirebaiais Road (connecting Mirebalais to Port-au-Prince, 50 km) and the Ganthier Road (Croix des Bouquets to Fond Parisien, 29-km). Consultants assigned the highest priority rating for the program to strengthen and improve a 50-km mountainous section between Passe Reine and Roche Halame, and to repair and surface-dress a 40-km section near Gonaives. The consuitants' recommendations were reviewed by IDA, and both sections have been inciuded for financing under the project. Final engineering by Setec-Sohico, including the 2.1 km of the Gimbale bypass to avoid two fords which would otherwise have to be replaced by bridges, has been completed.

4.15 There are other sections of the Northern Road and a further 300 km of roads elsewhere in the country for which reconstruction, rehabilitation or surface dressing was recommended by consuitants, but which couid not be included under this project. Nevertheless, final engineering for the Mirebalais Road (50 km) has been completed by the same consuitants to allow the Government to look elsewhere for external financing or to serve as a basis for a future IDA project.

1/ Traffic on individual sections of the Northern Road ranged between 96 and over 1,000 vehicles per day in 1977, and traffic growth forecasts averaged about 5%. - 20 -

E. Technical Assistance Component

4.16 The project includes a technicai assistance component which is, and another which is not, directly Linked to other project items. The former is a study of the most appropriate road maintenance technology. The latter is a study of the construction industry to update and complement the 1977 National Transport Study and auditing of the project accounts.

(i) Road Maintenance Technology Study

4.17 As a result of the increasing relative cost of capital goods and the possibility that too much money is being spent on routine and repeat periodic maintenance of gravel roads because of the lack of adequate drainage, the Govern- ment agreed to have a consultant investigate if it would be better to increase rehabilitation and minor betterments rather than to continue spending high amounts each year on routine and periodic maintenance. In addition, the Government agreed that, before increasing its mechanical maintenance capacity through the purchase of additional equipment, it wouid investigate if improved effectiveness could be obtained from increased labor-intensive activities and from systematic reiiance on smali contractors. Agreement was reached during negotiations that no disbursements would be made under the second tranche (Table 4.1) of the equipment component until this investigation is completed and TPTC has reviewed its maintenance methods after consultation with IDA. This study would be initiated in 1982 and take three months of professional services to complete. A detailed review, satisfactory to IDA, of SEPRREN's past field records compiled by maintenance brigades and required to assess the brigades' cost-effectiveness, would be part of the proposed study. Evaluation of these records would permit determination of the equipment-intensive maintenance activities best suited for execution, empioying labor-intensive technoiogies for periodic maintenance activities.

(ii) Study of the Domestic Construction Industry

4.18 Emphasis would be on the formulation of specific proposals for basic and vocational training for the industry's managers and skilied workers, and the training of technicians (project specific and elementary general management, surveying, cost estimates and control). Three man-months of professional services would be sufficient for this study. The study should iead to the adoption by the Government of a comprehensive program to foster the development of local contractors, in particular, increased reliance on contractors as an alternative to the present excessive use of force account operations for periodic maintenance and feeder road construction.

(iii) Auditing of Project Accounts

4.19 The accounts of the proposed project would be audited yearly by a firm of auditors acceptabie to IDA. In practice, given the state of the accounting and auditing profession in Haiti, this wouid most probably mean that international auditors would have to be hired and paid from project funds (some US$15,000 per year). This requirement would be consistent with procedures in - 21 - force under existing USAID and IDB ioans. SEPRRN's accounts are aiready audited by external auditors, and the audited reports are of good quality, inciuding income statements, balance sheets, and funds statements. The Government confirmed at negotiations that it would continue to audit SEPRRN's accounts and provide IDA with such audit each year starting in 1983 for the year 1982. Lasting institutionai improvements similar to those being obtained at Eiectricite d' Haiti and the National Ports Authority are expected from this auditing effort.

F. Cost Estimates, Financing and Disbursement

4.20 The total estimated project cost is US$19.2 million, as shown in the table on the following page. The proposed loan of US$14 million would finance 96% of the foreign exchange cost amounting to 73% of the total cost (100% of the foreign exchange of the base cost and 73% of the foreign exchange cost of contingencies). The Government would finance the remainder (inciuding about 2% of taxes) and the expenditures required to carry out the agreed Five-Year Mainte- nance Program (1982-1986) in the amount of about US$68 million at 1981 prices (Table 2.4). These expenditures include US$26 million in routine maintenance, US$24 million in periodic maintenance and US$18 miilion in rehabilitation works necessary to make roads maintainable. The availabiLity of counterpart funds and the commitment to fund SEPRRN's program adequately were confirmed at the time of negotiations.

4.21 The cost of equipment, spare parts, and workshop tools has been estimated on the basis of detaiied iists prepared by consultants (PRC Harris, USA) and includes local preparation and delivery charges but excludes import duties and sales taxes. The cost of vehicle-weighing equipment is based on recent experiences with similar items under Bank-financed projects.

4.22 The cost estimates for civil works for rehabiLitation and strengthening of the Northern Road were prepared by consultants (para 4.14), based on quantities from final engineering and current unit prices for similar works. The cost estimates for rehabilitation and construction of fords, bridges, and other drainage structures were prepared by consultants (para 4.09) and updated on the basis of substantially completed engineering (para 4.10).

4.23 Costs of consulting services for detailed engineering, supervision of civil works, technical assistance and studies reflected in this project are estimated at US$1.4 million. These costs are based on recent contracts and man-month rates for similar services by local and foreign firms. The consultant services costs include costs of vehicles, survey equipment, local transportation, local technicians, overhead and profits, but exclude soils laboratory costs. Average cost per man-month for engineers is estimated at about US$2,000 for some 125 man-months of Haitian nationals, and about US$11,000 equivalent for 75 man-months of foreign consultants. The expatriate personnel input comprises senior level, high-caliber expertise. - 22 -

HAITI

SIXTH HIGHWAY PROJECT

Project Cost Estimate by Project Component!/ (in millions of US dollars at end of 1981 prices excluding taxes) IDA Local Foreign Total Participation % of % of Project Components Amount Amount Total Amount Amount Total

1. Road Maintenance Equipment

a. Maintenance equipment 0.2 3.6 3.8 94 b. Spare parts and tools 0.1 0.6 0.7 94 c. Vehicle weighing equipment - 0.2 0.2 94

Sub-Total 0.3 4.4 94 4.7 4.4 94-!

2. Bridges and Other Structures

a. Civil works 1.0 2.4 70 3.4 70 b. Final engineering 0.2 0.1 33 0.3 70 c. Supervision 0.1 0.2 80 0.3 70 d. Technical assistance - 0.1 80 0.1 70

Sub-Total 1.3 2.8 60 4.1 2.9 70

3. Road Rehabilitation

a. Civil works 2.0 4.6 70 6.6 70 b. Final engineering - 0.1 80 0.1 70 c. Supervision 0.1 0.4 80 0.5 70

Sub-Total 2.1 5.1 71 7.2 5.0 70

4. Studies and Auditing. - 0.1 80 0.1 0.1 70

Total Base Cost 3.7 12.4 77 16.1 12.4

5. Contingencies

a. Physical 10% of 2 and 3 0 4 0.8 1.2 1.6 52 b. Price 12% of total base cost3/ I4IT 5 TT9 -

Total 4.6 14.6 76 19.2 14.0 73

1/ For a breakdown by disbursement category see Table 4.4 2/ Represents 100% of foreign cost 3/ 8.5% in 1982 and 7.5% in 1983-1984 - 23 -

4.24 The foreign exchange component of the civil works is 70% of the total cost and reflects dependence upon imported supplies, especially fuel and equipment. This estimate is based upon a detailed analysis of cost components. It has been assumed that the pavement strengthening and rehabilitation work would be carried out by a foreign contractor in association with a local firm. Concerning the bridge component, it has been assumed that local firms would carry out small and medium size contracts, up to US$500,000, and that large size contracts would be carried out by a combination of foreign firms and Haitian firms. The foreign exchange component of consultant services for supervision of construction, technical assistance, and detailed engineering has been estimated at 80% for foreign and 33% for domestic consultants, reflecting experience with contracts under the ongoing Fifth Highway Project.

4.25 The following expenditures would be eligible for disbursement under the credit against full documentation:

(a) 100% of the foreign expenditures for direct imports of equipment, spare parts and workshop tools or 94% of the total expenditures for locally procured imported equipment spare parts and workshop tools;

(b) 70% of the total cost for all civil works, for final engineering, and for supervision of works as well as for other technical assistance.

4.26 The estimated-schedule of disbursement is shown in Table 4.5. Dis- bursements are expected to be somewhat slower than those experienced in the past in Haiti because of the unusual project mix, with a large number of bridges and structures and equipment purchases to be procured in two phases. The closing date of the credit is foreseen for June 30, 1985.

G. Execution and Procurement

4.27 TPTC would be responsible for project execution through the following departments in accordance with the project implementation schedule shown as Chart IV.

- SEPRRN for equipment procurement, including specifications of the bidding documents and deployment of newly purchased equipment in accordance with agreed road maintenance program and for a study of road maintenance technology;

- SAT for the preparation of engineering designs for the bridge and road strengthening and rehabilitation programs and for technical assistance for the Construction Industry Study; and

- SCS for the execution and supervision of construction, rehabilitation and strengthening works to be carried out under the Bridge and Road Programs.

4.28 These departments have adequate capacity to carry out the tasks under the project; however, considering the demands placed on them by projects financed by other lenders, the absorptive capacity of SAT and SCS would have - 24 - to be kept under close review. The Government agreed during negotiations that it would exchange views periodically with IDA on the staffing of, and coordination among, the various administrative units of the Ministry charged with carrying out any part of the project.

4.29 Equipment: The procurement program for new equipment, including spare parts, would be carried out in two tranches (Table 4.1) in accordance with IBRD's Guidelines for Procurement of July 1980 and would indicate lot, size, estimated cost and proposed exceptions to ICB. Contracts for purchases of equipment, spare parts or tools which, after grouping according to the guidelines, are estimated to cost under US$50,000 may be awarded following local advertising in accordance with the regulations of TPTC. In cases where equipment is to be purchased under the project as a relatively small addition to a number of existing similar units, SEPRRN may, if IDA would agree, and for the purpose of standardization, procure such equipment on the basis of quotations from established suppliers. Contracts for the purchase of spare parts of specific makes for existing equipment may be purchased directly from established deaiers. IDA approval for the purchase of the second tranche (1983/1984) would be contingent upon the measures mentioned in paragraph 4.17. The list of equipment included in the second tranche would be adjusted in accordance with the findings of the review of maintenance technology. SEPRRN, assisted by consultants, would prepare specifications for the maintenance equipment and spare parts to be acquired under the project, prepare pertinent bidding documents and evaluate bids presented by suppliers.

4.30 Works: Civil works for roads and structures totaling about US$12 million, including contingencies, would be procured by ICB after prequalification of firms, all in accordance with IBRD's Guidelines for Procurement. Contracts with an estimated cost below US$50,000 would be advertised locally in accordance with TPTC regulations. Foreign bidders would have the opportunity to participate.

4.31 For bidding purposes, bridge and other structure works would be contracted in iots of between US$500,000 and US$1 million each, and the road rehabilitation component (about US$6.6 million) would be let as one contract. The proposed division is compatible with the established contracting capacity; it would ensure satisfactory implementation of the project, and would maximize participation of local firms without undue risk. Provisions permitting submission of alternative bridge designs would be included in bid documents. All bidders wouLd be requested to submit a fully documented bid for the design included in the bidding documents.

4.32 There are at least two Haitian firms with adequate technical and financial resources to compete with foreign firms for civil works. Packaging civil works for bridges would possibly allow up to six other smaller Haitian firms to present successful bids because the repair and construction work on reinforced concrete bridges, box culverts, concrete fords and minor repairs to existing bridges included in the project require low capital and technological resources. - 25 -

4.33 Consultants wouid be retained following the Bank's Guidelines for the Use of Consultants of August 1981. Their selection, qualifications, experience and terms and conditions of employment would be subject to prior review and approval by IDA. No withdrawals of the proceeds of the Credit would be made with respect to civil works until consultants for the supervision of civil works have been hired. The terms of reference for consulting services for final engineering designs, supervision of civil works and related technical assistance were agreed at negotiations (Annexes 2 to 6).

4.34 Review of Procurement Decision. The Government agreed at negotiations to submit to IDA, for review and approval, documents used for prequalification of bidders before qualification is invited; lists of prequalified bidders would state reasons for exclusion of any applicant. Before inviting submission of bids, the Government would furnish to IDA, for review and approval, specifications and other bidding documents together with a description of advertising procedures. Before a final decision on the award is made, the Government would inform IDA of the name of the bidder to which it intends to award the contract and furnish a detailed report on the evaluation and comparison of bids received, together with recommendations for award.

H. Monitoring

4.35 The progress of the project would be monitored against the agreed implementation schedule and financing requirements established at appraisal. In addition, the following indicators would be monitored to assess advances made toward the project objectives:

(a) availability and utilization of maintenance equipment (para 4.06);

(b) programing and implementation of SEPRRN's annual maintenance programs (para 4.03);

(d) budgeting and adequacy of funds for the maintenance and reconstruction program as per agreed schedule (para 4.20); and

(e) increased labor-intensive activities in road maintenance (paras 4.17 and 4.29).

4.36 In September of each year, SEPRRN would review jointly with IDA its proposed maintenance budget and work program for TPTC's next fiscal year. On March 15 of each project year, starting in 1982, SEPRRN would submit to IDA for review its revised maintenance program through September of that year.

4.37 SEPRRN would be required to keep separate and detaiied records of production and cost based on actual field records, for each maintenance bridgade, and determine cost-effectiveness of each brigade; costs would include equipment's fixed and operating costs, showing the number of productive hours, equipment downtime and departmental overheads. The latter should indicate the time that the equipment was in the workshop for servicing. Labor cost would include salaries, social benefits and allocated supervisory costs. - 26 -

V. ECONOMIC EVALUATION

A. General

5.01 The three major components of the project have each been subject to a separate and distinct analysis. Because each component has a considerable maintenance element, the rate of return on the whole project and on each component is expected to be above 20%.

B. Road Maintenance Component

5.02 The road maintenance component, which was originally supposed to be financed by USAID, consists mainly of the replacement of road maintenance equipment which was purchased under a USAID project. This equipment was carefully selected to fit in an optimum strategy. It will therefore continue to have a very high economic return. In its present state (37% manufactured before 1976 and 20% being former US Army surplus equipment), this equipment requires frequent and costly maintenance. In addition, Haiti does not have the necessary foreign exchange to replace the equipment, without which not only would the roads deteriorate, but also costly future expenditures on road reconstruction would be required. USAID recognizes the need for these expenditures, but is already committed on other projects. A small amount of equipment to increase Haiti's road maintenance capacity would be purchased only after it has been determined that more labor-intensive operations would not be a better substitute (para 4.05).

C. Bridges and Other Drainage Structures Component

5.03 This component and the road rehabilitation component were carefully prepared by the Association under the ongoing Fifth Transport Project. The project component consists mainly of deferred maintenance and repair of existing bridges and other drainage structures, but also includes the construction of a 2,100 meter road section bypassing two existing fords which would otherwise have had to be replaced by two bridges.

5.04 For every road section, a zone of influence of the road was determined, and the demographic, spatial and economic data of that zone served as a basis for estimates of present and future traffic. Wherever relevant, the modal split between coastal shipping and road transport has been taken into account to determine expected future traffic flows. Other elements taken into account are autonomous traffic and generated traffic from pack animals to vehicles and from one road to another as well as purely generated traffic due to the creation or improvement of drainage structures.

5.05 The following benefits have been quantified by the consultant: vehicle operating cost savings of actual and generated traffic, increased on- farm consumption made possible by the project, savings realized by avoidance of produce spoilage, accident avoidance benefits and residual values of the new structures at the end of the analysis period.

5.06 Costs taken into account consist of the economic costs of the investment proper, the differential maintenance costs, the costs of having to construct temporary river crossings in case of a fallen bridge, and the maintenance costs of these temporary structures. - 27 -

5.07 With these costs and benefits, three types of analysis were made: the conventional internal rate of return (IRR), the benefit/cost ratio and the net present value of the benefits caiculations. The results of these three calculations can be found in Table 5.1. They indicate rates of return between 17 and over 100% with the lowest rates for new construction and the highest rates for maintenance of existing structures.

5.08 The most important benefits are the vehicle operating cost (VOC) savings (Tabie 5.2). These savings are the result of cost differentials between operating different types of vehicles on better access road and bridge surfaces than would exist without the project. The typical vehicles can be found in Table 5.2, column 1. They range from a private passenger car with a cost of USJi5.43 per km on the best road surface to a tanker truck with a VOC of USg205.2i per km on the worst road surface (a track with a rocky surface or through a swampy terrain). The present state and the projected future state of road structures and their access roads are given in Tabie 5.3. An economic classification of the evolving status of the project roads is given in Table 5.2.

5.09 A sensitivity analysis of this project item indicates that, even when VOC savings alone are taken into account as benefits, the rate of return will still remain positive for all items being selected for the project (Table 5.4). A sensitivity analysis with constant costs and declining benefits (-20%) or constant benefits and increasing costs (+15%) also indicates that the rate of return will remain above 13% for ali structures.

5.10 The selection process of structures was based mainly on rate of return considerations which made all repairs come out with very high priority. However, the priority rankings of IRR, B/C ratio and sensitivity tests were also added up and used for ranking. Finally, some budget constraints had to be taken into account, which led to the design of some rather expensive structures (US$1.6 million, Tabie 4.3) which will not be executed under the project unless the existing structures should fail.

-5.1i A special analysis was made of the proposed new alignment of a 2,iOO-m section of the Port-au-Prince--Mirebalais road, which would eliminate two existing fords which would otherwise have to be replaced by bridges. The rate of return (18%) of that new alignment was considerably higher than the rate of return on the two new bridges on the existing alignment, and the road section was therefore included in the structures program.

D. Road Rehabilitation Component

5.12 The road rehabilitation component was selected from a set of more than 500 km of roads studied on the basis of the IRR for the selected section. The IRR was calculated in a straightforward classical way. Only the economic costs of the investment, the VOC savings based on initial and generated traffic and traffic growth and the maintenance cost savings were taken into account. The initial status and the projected status of the road section under study were expressed in terms of roughness in mm/km. Initial roughness was measured with a calibrated bumper integrator. Vehicle operating costs - 28 - for six differentkinds of vehicles (Table 5.5) are in line with Bank experLence in other parts of the world. The most extreme observationsare still rather modest since the differencesbetween VOC for roughness 2,000 mm/km versus roughness4,000 mtm/kmare only 17 and 19% respectivelyfor light and heavy trucks and vary by 30 to 40% for light vehicles.

5.13 The IRR of the reinforcementof the Passe Reine-RocheHalame section of the Northern Road was calculatedby the consultantsin four different sections,each with an IRR of 12 or 13%. Additional investigationshave been under way to determinewhether a lighter pavement than the one proposed by the consultants(3 cm of bituminousconcrete and 7 cm of bituminous gravel) could be adopted. Annual average daily traffic on the four sections varies between 270 on the two central ones, 410 on the southern and 290 on the northern section. Traffic growth, which averaged more than 10% per annum on all major roads in Haiti, is expected to continue at a rather high level in the future.

E. Risks

5.14 There are no exceptionalrisks affecting this project. The road structuresrehabilitation element could suffer implementationdelays because of the attempt to spread the design work among local consultant firms and the works among local constructionfirms. The institution-buildingthat should evolve from this endeavor is warranted even at the cost of some delay. Finally, the road rehabilitationelement is particularlystraightforward and does not present any particular risk.

5.15 The maintenancecomponent is, as usual, the one with the highest uncertainties. SEPRRN is emerging as a strong institution,and its equipment maintenancecapability is good. The equipmentprovided under the project would, therefore,be in good hands. In addition, SEPRRN would need continuationof the technicalassistance now financed by USAID. The confirmation,in principle, mentioned in paragraph 4.07 would alleviate the risk affecting this element. It is clear, however, that the provision of related financingwould have the usual uncertaintiesand risks of delay. The critical element of support for SEPRRN would be the funding of its operations. The record of the last four years is good; nevertheless,the proposed levels of spending are high. This aspect would have to be monitored closely, and SEPRRN's annual programs may have to be adjusted in case of shortfalls. The assurancementioned in paragraph 4.07 concerningthe autonomous funding of SEPRRN and the restrictionsof its activities to maintenancewould maintain the integrityof this institutionand allow it to complete its development.

VI. AGREEMENTS REACHED AND RECOMMENDATION

6.01 During negotiations,agreement was reached with the Governmenton the following:

(a) work program for SAT over the project period (paras 1.16 and 2.19);

(b) no revisions, suspensionsor exemptions to existing regulations on axle load limits to be made without IDA's prior agreement (para 2.13); - 29 -

(c) the Government to consult with IDA annually on measures to ensure adequate coordination among units charged with planning or carrying out construction of feeder roads (para 2.23);

(d) a schedule to eliminate the entire tax differential between gasoiine and diesel progressively by the end of 1983 (para 2.43);

(e) SEPRRN's equipment not to be used for road construction (para 4.07);

(f) availability and utilization of SEPRRN's equipment fleet and the required percentage of total network to be maintained each year to be monitored on a continuing basis and assessed annually (para 4.07);

(g) equipment management, incLuding systematic planning of renewal overhaul and scrapping, to be discussed with the Bank at the time of review of SEPRRN's annual maintenance program (para 4.07);

(h) quarterly reporting by the Government to IDA on implementation of its weight and dimension control program (para 4.08);

(i) no disbursements to be made under the second tranche of the equipment component until the road maintenance technology study is completed and TPTC has reviewed its maintenance methods after consultation with IDA (para 4.17);

(j) SEPRRN's audited accounts to be made available to IDA starting in 1983 for the year 1982 (para 4.19);

(k) avaiLability of counterpart funds and the commitment to fund SEPRRN's program adequately (para 4.20);

(i) the Government to review, jointly with IDA, the staffing of, and coordination among, the administrative units of TPTC involved in the project (para 4.28);

(m) procurement program, bidding documents and model contracts (paras 4.29, 4.30 and 4.34); and

(n) terms of reference for consulting services for final engineering designs, supervision of works and related technical assistance (para 4.33).

6.02 Adoption of a system of sanctions for axle load violations, providing for fines which are proportional to the extent of the violation, as part of the program of control of weight and dimensions of vehicles, would be a condition for effectiveness of the Credit Agreement (para 2.13).

6.03 Subject to the above, the project provides a suitable basis for an IDA Credit of US$14 million; standard IDA conditions are appropriate.

March 8, 1982 - 30 -

TABLE 2.1

HAITI

SIXTH HIGHWAY PROJECT

Current and Projected Highway Network 1981-1986 (in kilometers)

Year 1981 1982 1983 1984 1985 1986

Paved roads 576 609 637 671 694 699

Gravel roads 1,650 1,800 1,950 2,150 2,400 2,700

Earth roads 469 438 414 368 327 317

Total km 2,7441/ 2,847 2,951 3X1-89 3,421 3,714

Source: SAT

1/ Previous statistics on the total km of the National Network includes an additional 1,000 km of earth tracks which were to be rehabilitated by TPTC under "Title 4" with USAID financing. The project has not materialized and the 1,000 km are no longer part of the National Network.

October 1981 - 31 -

TABLE 2.2

HAITI

SIXTH HIGHWAY PROJECT

Vehicle Rezistration FY1975-1980 (Vehiclesin units and growth in percent)

Vehicle Type 1975 1976 1977 1978 1979 1980

Passenger Cars 13,448 13,480 14,843 17,379 18,300 22,030

Trucks 2,167 2,031 2,161 2,828 3,556 3,344

Pick-ups 2,924 2,354 2,599 3,669 4,774 6,716

Jeeps 1,479 2,001 2,265 2,807 3,549 3,435

Buses 318 331 645 849 1,112 1,115

Special Vehicles 87 38 53 62 70 64

Sub-Total 20,423 20,235 22,513 27,594 31,361 36,704

4otorcycles 600 864 861 3,187 1,508 1,491

Total 20,991 21.099 23.374 30,781 324869 38,195

Growth Subtotal in % n.a. - 11 23 14 17

Growth Total in % n.a. 1 11 32 7 16

Source: Armed Forces in Haiti, Haitian Institute of Statistics

October 1981 - 32 -

TABLE 2.3

HAITI

SIXTH HIGHWAY PROJECT

Vehicle Imports, 1970-1980 (Number in units and growth in percent)

Fiscal 2 Passenger Cars Commercial Vehicles Year Number. Growth Number Growth

1970 910 n.a. 827 n.a.

1971 1178 29 1017 23

1972 1068 - 9 916 -10

1973 886 -17 1532 67

1974 1148 30 1645 7

1975 1043 - 9 1329 -19

1976 1492 43 1154 -13

1977 1525 2 1425 23

1978 2507 64 2090 47

1979 3081 23 1161 -44

1980 2630 -15 1214 5

Total 1468 13514 Annual Growth 1970-1980 11 8

1970-1975 15 10

1975-1980 20

1/ Excluding duty free vehicles, which are reportedly a significant, but unsubstantiated number. 2/ Fiscal year is from October l to September 30.

Source: Haitian Institute of Statistics and Ministry of Finance February 1982 - 33 -

TABLE 2.4 HAITI

SIXTH HIGHWAY PROJECT

SEPRRN's Maintenance Expenditures

Actual FY1977-1981 and Budgets FY1982-1986 at 1981 prices (in millions) Actual Expenditures Annual Years 1977 1978 1979 1980 1981 Growth

Gourdes 8.8 13.4 17.2 25.8 39.0

US$ 1.8 2.7 3.4 5.2 7.8 45

SEPRRN's Maintenance Budget Requirements, 1982-19861/ (at 1981 prices) Annual Years 1982 1983 1984 1985 1986 Increase

Gourdes 46.5 61.0 72.0 76.5 81.5

US$ 9.5 12.2 14.4 15.3 16.3 15 of which Routine 4.4 4.7 5.1 5.5 6.0

Periodic.' 4.1 4.4 4.8 5.2 5.7

Rehabilita- 1.0 3.1 4.5 4.6 4.6 tion

1/ Approved by Ministries of Finance and TPTC (Five-Year Maintenance Program FY1982- 1986). Fiscal year is from October 1, previous year to Sept. 30 of indicated vear. Assumptions (in US$): Routine Maintenance: paved roads 2000, gravel roads 1600 and earth roads 800 per km; periodic maintenance: paved roads 14,000 per km every seven years; gravel roads 8000 every five years; rehabilitation about 15,000 per km.

2/ The proposed Road Maintenance Technology Study will analyze to which extent periodic maintenance and rehabilitation should be done by SEPRRN or by contractors.

Source: SAT

October 1981 - 34 - TABLE 2.5

HAITI

SIXTH HIGHWAY PROJECT

Classificationand Distributionof SEPRRN'sMaintenance Brigades ki.nun3tsj

Type of Brigade Intervention Regrading Bridge Hand Asphalt Total Type of Routine latervention Periodic Routine Periodic Routine Patching and Routine Location

Districts

Port-au-Prince 1 1 1 13 8 24

Cap Haitien 1 2 1 13 5 22

Gonaives 1 1 1 7 2 12

Hinche 1 1 1 7 - 10

Les Cayes 1 1 1 8 4 15

Jeremie 1 1 1 8 - 11

Sub-Districts

Port de Paix - 1 - 7 - 8

St. Marc - 1 - 7 3 11

Mirebalais - 1 - 6 1 8

Jacmel - 1 - 6 3 10

Petitgoave - 1 - 8 2 11

Total units 6 12 6 90 28 142

Source: SEPRRN

October 1981 - 35 -

TABLE 2.6

HAITI

SIXTH HIGHWAYPROJECT

SEPRRN Assignment of Maintenance Equipment

Total Central Districts and Needed for Garage Subdistricts Intervention Regrading Hand Asphalt Bridge Description Program Total Each Total Each Total Each Total Each Total Each Total Each Total

Bulldozers 12 - - - 1 6 1 6 Loaders Front-end 8 - - 2() 1 6 - -

Loaders Backhoe 11 - - - 1 6 1 5 ------

Dump Trucks 97 - - - 5 30 1 16 0.5 45 - 1 6

Graders 24 - - - 2 12 1 12 - - - -

Lubrication Trucks 6 6 ------

Service Trucks 6 6 ------Fuel Trucks 2 2 ------

Tractors Industrial 12 - - - 2 12 - - - - Water Trailers 24 - - - 2 12 1 12 - -

Compactors (Self-Propelled) ------

Steel Rollers 12-15 T 6 - - - 1 6 ------Vibro Rollers 15 T 11 - - - 1 6 1 5 - Vibro Rollers 1.5 T 29 ------15 0.5 14 - Walk-Behind Rollers 3 T 10 ------(b) 10 - -

Flatbed Trucks 4 4 ------Sedans 8 8 ------Utility Vehicles 34 12 2 22 ------Pickup Trucks 47 3 - - 2 12 1 12 - - 0.5 14 1 6

Truck Tractors 3 3 ------Trailer 20-25 T 4 4 ------

Asphalt Kettle 14 ------0.5 14 - -

Asphalt mixers and warmers 10 - 1 (c) 10 ------Concrete mixers 6 - 1 6 ------

Welders 300 amp. 16 - 1(d) 10 ------1 6 Air Compressors 275 CFM 6 ------1 6 Fork Lift 3 T 1 1 ------Yard Crane 3 T 1 1 ------

(a) One assigned to North Road One assigned to Jacmel Road (b) As required (c) Assigned to districts serving the North and Jacmel Roads (d) Except Port-au-Prince district.

Source: SEPRRN

October 1981 - 36 -

TABLE 2.7

HAITI

SIXTH HIGHWAY PROJECT

Government'sCurrent and Capital Expendituresfor Roads, FY'1976-1981 kin mililons ot US dollars)

Est. 1975 1976 1977 1978 1979 1980 1981

TPTC OperatingExpenditures 1.9 1.3 2.1 2.0 2.6 2.7 3.0

SEPRRN MaintenanceExpenditures g 2.0 3.9 4.0 3.5 5.4 10.2 11.2

Governmentfinanced 0.8 2.2 1.8 2.7 3.4 5.2 7.8

USAID financed 1.2 1.7 2.2 1.0 2.0 5.0 3.4

InvestmentExpenditures 23.6 45.6 42.7 56.9 36.5 40.3 60.0

Totals 26.8 49.8 48.8 62.6 44.5 53.2 74.2

Government Financing n.a. 18.0 20.0 31.4 23.9 28.8 3.3

External Financing n.a. 31.8 28.8 31.2 20.6 24.4 70.9

1/ October 1 to September 30

2/ Includes capital expendituresfor new equipment

Source:Ministry of Planning and TPTC

October 1981 - 37 - TABLE 2.8

HAITI

SIXTH HIGHWAY PROJECT

Revenue from Road User Charges FY 1974-1980 (in millions of US dollars)

1974 1975 1976 1977 1978 1979 1980

Taxes on fuel and lubri- _cants-/ 3.11 4.25 3.97 4.50 5.85 6.68 7.86

Import duties 1.63 2.84 4.37 6.73 3.61 6.29 4.65

On vehicles 1.20 2.38 3.66 5.63 3.09 5.17 3.50

On spare parts 0.17 0.19 0.24 0.30 0.28 0.32 0.35

On tires 0.26 0.27 0.47 0.80 0.24 0.80 0.802/

Registration fees3/ 0.76 0.81 0.87 1.19 1.32 1.41 1.29

Drivers permits 0.10 0.11 0.13 0.15 0.11 0.12 0.12

5.60 8.01 9.34 12.57 10.62 14.50 13.922.!

1/ Includes import duty and excise taxes

2/ Mission estimates

3/ Includes tax on first refistration, subsequent annual registration and inspection fees (Taxes Specifiques . Source: SAT and Ministry of Finance: Customs and Administration Generale des Contributions

October 1981 - 38 - TABLE 2.9 HAITI

SIXTH HIGHWAY PROJECT

Petroleum Consurption by Economic Sectors, 1978-1979 (1000 barrels per year)

1978 1979 Sector Volume % Volume %

Industry 1/ 786 46.7 769 43.0

Gasoline 47 2.8 494/ 2.7 Middle Distillates 270 16.0 296 16.5 Bauxite - 28 Electricite d'Haiti 123 139 Others 2/ 147 101 Fuel Oil 469 27.9 424 23.7 Bauxite 27 25 Cement 287 277 Electricite d'Eaiti 25 26 Others 3/ 130 96

Transport 761 45.2 858 47.9

Domestic 665 39.5 718 40.1 Road Trangnort 631 37.5 681. 38.0 Gasoline 335 34 Diesel 296 332 Aviation Gasoline 34 2.0 37 2.1 International Jet Fuel 96 5.7 140 7.8

Residential & Commercial 82 4.9 89 5.0

LPG 22 30 Kerosene 60 59

Speciality Products 55 3.3 74 4.1

Total 1,684 100.0 1.790 100.0

Source: Oil Companies

1/ Includes industry as well as part of the service sector 21 Includes consumption for power generation in industrial establishments and in the service sector, such as potable water company, hotel industry and others. 3/ Obtained as a residual. 4/ Compares witha total for industry and transport of 349,000 in 1980

February 1982 - 39 - TABLE 2.10

HAITI

SIXTH HIGHWAY PROJECT

Evolution of Retail Prices for Gasoline and Diesel Fuel, 1974-1981 (US$/gallon)

Gasoline Difference Diesel

January 9, 1974 .84 .34 .50

February 8, 1974 .94 .31 .63

May 1, 1975 .92 .32 .60

March 5, 1976 .94 .31 .63

March 2, 1977 .97 .32 .65

March 1, 1979 1.06 .41 .65

June 1, 1979 1.29 .57 .72

August 8, 1979 1.58 .78 .80

September 2, 1979 1.58 .73 .85

February 20, 1980 1.85 .78 1.07

August - 1980 1.85 .68 1.17

March - 1981 2.15 .98 1.17

Source: SAT and Bank mission ebrUa5ry1982 - 40 - TABLE 2.11

HAITI

SIXTH HIGHWAY PROJECT

Petroleum Products -- Estimated Price Structure as of March 19817 (in US Dollars per US gallon)

Gasoline Diesel Actual Phase I Phase I__

Average Postings in Caribbean 0.986 0.940 0.940 0.940 Freight, Insurance & Wharfage 0.057 0.060 0.060 0.060

Price CIF 1.043 1.000 1.000 1.000

Import Duty 0.644 - 0.150 0.644

Excise Tax 0.220 - 0.050 0.220

Marketing Margin 0.143 0.100 0.100 0.100

Dealers Margin 0.100 0.070 0.070 0.070

Final Consumers Price 2.150 1.170 1.370 2.034

Phase I = Before Board Presentation

Phase II = By end of 1983

Source: SAT and Bank mission 1/ Date of latest substantial change 2/ Or an equivalent combination.

February 1982 HAITI

SIXTH HIGHWAY PROJECT

SEPRRN: Replacement and Additional Equipment Required for 1982-1986 Period

Equipment Units In Thousand of US$and 1981 Prices Total Needed Equipment Total Procurement Unit Total Description for Program On Hand Retire Replac. Added Purch. 82 3/84 Price 1982/83 1982/84 Eip. Cost

Bulldozers 12 14 6 4 - 4 1 3 90 90 270 360 Loaders Front-end 8 12 5 1 - 1 1 54 - 54 54 Loaders Backhoe 11 12 4 3 - 3 - 3 35 - 105 105 Dump Trucks 97 88 30 30 9 39 19 20 25 475 500 975 Graders 24 21 10 10 3 13 5 8 65 325 520 845 Lubrication Trucks 6 7 4 3 - 3 3 - 40 120 - 120 Service Trucks 6 - - - 6 6 6 - 14 84 - 84 Fuel Trucks 2 4 2 ------Tractors, Industrial 12 - - - 12 12 12 - 15 180 - 180 Water Trailers 24 13 - - 11 11 3 8 7 21 56 77 Cumpactors: (Self-propelled)

Steel Rollersl2-l5 Ton 6 6 ------

Vibro Rollers 15 T 11 11 ------Vibro Rollers 1.5 T 29 29 10 10 - 10 5 5 10 50 50 100 Walk-Behind Vibros 3 T 10 - - - 10 10 5 5 14 70 70 140 Flatbed Trucks 4 9 5 ------Sedans 8 8 3 3 - 3 3 - 7 21 - 21 Utility Vehicles 34 34 16 16 - 16 8 8 9 72 72 144 Pickup Trucks 47 60 26 26 - 26 13 13 8 104 104 208 Truck Tractors 3 3 1 1 - 1 - 1 45 - 45 45

Trailers 20-25 Ton 4 7 ------_ Air Compressors 275 CFM 6 3 1 1 3 4 2 2 18 36 36 72 Welders, 300 AMP 16 16 4 4 - 4 2 2 5 10 10 20 Fork Lift, 3 T capacity 1 1 1 1 - 1 1 - 21 21 - 21 Yard Crane 3 T Capacity 1 1 1 1 - 1 1 - 21 21 - 21 Concrete Mixers 6 6 2 2 - 2 2 - 5 10 10 Asphalt Kettles 14 24 ------Asphalt Mixers/Warmers 10 3 - - 7 7 7 - 10 70 - 70 Subtotal 1,780 1,892 3,672 Spare Parts 20% 356 378 734 Equipment tor vehicle weighing 200 - 200 Additional equipment for Bridge Brigades 65 65 Workshop Tools 68 - 68 Totals 412 392 157 116 61 117 98 79 2,469 2,270 4,739

Source: SEPRRN September 1981 - 42 - TABLE 4.2 Page 1 of 2 HAITI

SIXTH HIGHWAY PROJECT

Program for Construction, Rehabilitation and Repair of Bridges, Box Culverts and Concrete Fords (dimensions in meters, costs in thousands of US dollars)

Structure Dimension Road at Typeof Costs AATI/ Identif. Structure Bridge Work_1/ Construction Road at Repair 1980 1990 IRR No. Road Section Approach firm Bridge % Approach ~~~~Approach

12.1-01 Mirebalais-Las Cahobas 3x2.0x2.0 50 RBC (UA) 38.6 7.7 58 180 120 12.1-02 .5,s 5.3 BR - - 4.8 12.1-03 6.Cx5.5 BR - - 1.2 12.1-04 5.OxS.9 BR - - 1.5 4 7 12.1-05 70.3 x . BR - - 34.9 12.1-06 5.8 BR - - 1.8 12.1-07 3x2.0 50 RBC (VA) 38.6 7.7 12.1-08 36x12 .0 BR - - 2.3 12.1-09 22.3 x5 .6 BR - - 41.2

12.2-02 Las Cahobas-Belladere 6.2x 7.5 BR - - 3.1 13 54 101 12.2-03 Dominican Republic border 22.7x 5.7 BR - - 62.0

5 11.2-01 Croix des Bouquets- .Ox 8.9 BR - - 8.3 341 824 119 Thomazeau Intersection 1.2-01 Trou du Nord-Terrier Rouge 46.5x 4.9 BR - - 46.0 53 1:L7 45 4 1.3-01 Terrier Rouge- 7. x 7.8 BR - - 2.8 27 68 67 1.3-02 Ft. Liberte Intersection 7..2x5 .6 BR - - 9.4 1.3-03 22.0x 5.8 BR - - 17.3

3 7 7 1.4-01 Carrefour Ft. Liberte- 4. x . BR - - 4.2 15 30 17 1.4-02 Ouanaminthe-Dominican 7.5x 7.7 BR - - 3.6 1.4-04 Republic border 19.Sx 5.4 BR - - 123.0 1.4-05 18.8x 5.9 BR - 7 - 7.7 1.4-06 18.3x 7. BR - - 9.9 7 7 1.4-07 S.Sx . BR - - 1.7

4.1-02 Carrefour Dolant-Gros Morne 7.2, 5.4 BR - - 4.0 174 404 2168

4.2-06 Gros Morne-Port-de Paix 11. 5:7.7 BR - - 7.2 69 15B 200 4.2-09 8.4 ,4.7 BR - - 5.0

6 3 24.0-01 Pont Sur La Riviere Grande 118.9x . BR - - 23.8 55 135 71 Anse

21.2-02 Houck-Port Salut 5.6 86.0 BR - - 1.7 41 13'5 181

Sub-Total Page 1 100 77.2 15.4 428.4 - - TABLE 4.2 Page 2 of 2 HAITI

SIXTH HIGHWAY PROJECT

Program for Construction, Rehabilitation and Repair of Bridges, Box Culverts and Concrete Fords (dimension in meters, costs in thousands of US dollars)

Structure Dimension Road at Type of Costs AAnD4l. Identif. Structure Bridge Work 1/ Road at Repair 1980 1990 IRR No. Road Section Approach Construction Bridge % No. ~~~~~~~~~~~~~~~~~~Anoroach 16.1-01 Jacmel-Cayes Jacmel 7.6 BR - - 4.6 89 210 24 16.1-02 3x2x2 50 NBC 38.6 6.0 - 2 16.1-03 4x2x 50 RBC 48.4 6.8 - 16.1-04 NF 23.7 1.9 -

8.1-01 Catrefour Menard- 10.0x7.8 - - 30.6 80 219 34 2 8.1-02 Dondon-St. Raphael 2x2.0x .0 50 NBC (UA) 28.6 6.6 - 8.1-03 2x2.0x2.0 50 RBC (UA) 28.6 6.6 - 8.1-04 2.0x2.0 50 RBC (UA) 18.6 6.5 - 8.1-05 16.0x9.2 950 RB (UA) 157.5 107.7 - 8.2-01 20.2x6.1 BR 29.8 8.2-02 3x2.0x2.0 50 RBC (UA) 38.6 6.3

8.5-01 Pont Sur La Riviere Guayamouc-Hinche 137.5x5.5 BR - - 92.4 38 93 44

2.1-01 Limbe-Port Margot 4x2.0x2.0 50 RBC (UA) 48.4 7.8 - 21 76 20 3 2.1-02 x2.ox2.0 50 RBC (UA) 38.6 8.2 - 2.1-03 2x2.Ox2.0 50 RBC (UA) 28.6 7.2 - 2.1-04 2x2.0x2.0 50 RBC (UA) 28.6 6.9 - 2.1-05 2.0x2.0 50 NBC (UA) 18.6 6.0 -

2.2-02 Port Margot-Le Borgpe 2x2.Ox 50 RBC (UA) 28.6 7.3 - 12 51 36 5.1-01 Port-de-Paix-St.Louis 2x2.Ox 50 NBC (UA) 28.6 6.0 - 184 375 34 2 5.1-02 du Nord x2.0x 50 UBC (UA) 28.6 6.0 - 5.1-03 16.0x 400 NB (PA) 146.1 55.6 - 5.1-04 16.Ox 400 NB (PA) 146.1 55.6 - 5.1-05 2x 2. x2. 50 NB (PA) 28.6 6.0 - 5.1-06 3x 2.0x2. 50 NBC (PA) 38.6 6.0 - 5.1-07 3x 2. Ox2. 50 RBC (PA) 34.0 10.0 -

20.0-01 Cavaillon-Barraderes 3x2.0x2.0 50 NBC (UA) 34.0 5.1 - 7 22 87 20.0-02 100 m NF (UA) 17.5 1.4 - 20.0-03 50 m NF (UA) 8.7 0.8 -

Carrefour Ihomazeau- 11.3-00 Mirebalais 2100 Road in lieu of bridges 748.3 - 206 465 24 11.3-03 16.Ox9.2 400 RB (PA) 166.6 65.5 - 6 9 2 11.3-04 2xl .Ox . 400 RB (PA) 246.7 77.2 - Sub-Total Page 2 5,550 1,498.1 1,235.3 157.4

Total Pages 1 & 2 5,650 1,575.3 1,250.7 585.8 I AADT Average Annual Daily Traffic BR - Bridge repairs NB - Construction of new bridge RB - Replacement of existing structure with bridge NBC - Construction of new box culvert RBC - Replacement of existing structure with box culvert NF - Construction of new concrete ford UA - Acces road unpaved PA - Paved access road

Source: TPTC (DIWI Consultants) September 1981 HAITI

SIXTH HIGHWAYPROJECT

Bridges, Box Culverts and Concrete Fords to be Designed Only Under the Project 1/

Structure Road Type of Costs Identification DImensions_ AceRs, Work.2/ Construction Design Road Section No. Meters US$ dollars

Carrefour-Ft. Liberte 3/ Dominican Republic Border 1.4 - 03 - 16.0 x 9.2 620 RP PA 380,250 19,015

Hinche-Carrefour Menard 8.3 - 01 3 X 16.0 x 9.2 800 NB UA 574,000 28,700

Hinche-Thomassique 9.2 - 01 2 X 16.0 x 9.2 600 NB UA 341,700 17,085

Jeremie-Moron 23.1 - 01 2 X 2.0 x 2.0 50 RBC UA 35,950 1,800

23.1 - 02 2. X 2.0 x 2.0 50 NBC UA 34,600 1,730

23.1 - 03 2.0 x 2.0 50 NBC UA 24,620 1,230

23.1 - 04 2.0 x 2.0 50 NBC UA 34,600 1,730

Dame Marie-Anse d'Hainault 23.3 - 01 3 X 2.0 x 2.0 100 RD UA 50,370 2,520

23.3 - 02 3 X 2.0 x 2.0 50 NBC UA 45,000 2,250

23.3 - 03 3 X 2.0 x 2.0 50 RBC UA 50,370 2,520

2,320 1,571,460 78,580 t 1/ These structures will be designed and financing for their execution will have to be found from another source. 2/ See footnote one Table 4.2 3/ The existing bridge will be kept operational under the routine maintenance program with minimal outlays

Source: TPTC (DIWI Consultants)

September 1981 - 45 -

TABLE 4.4

HAITI

SIXTH HIGHWAYPROJECT

Project Cost Estimateby DisbursementCategory (in millions of US Dollars at end of 1981 prices excludingtaxes)

IDA participation Local Foreign Total Amount %

1. Purchase of Equipment

Spare parts and Tools 0.3 4.4 4.7 4.4 941!

2. Civil Works 3.0 7,0 10.0 7,0 70

3. Final Engineering (PPF) 0.2 0.3 0.5 0.3 70

4. Supervisionof Works 0.2 0.6 0.8 0.6 70

5. Studies and Auditing - 0.1 0.1 0.1 70

6. Base cost 3.7 12,4 16,1 12.4

7. Physical Contingencies 0.4 0.8 1.2 1.6 52 8. Price Contingencies2/ 0.5 1.4 1.9

9. TOTAL 4.6 14.6 19.2 14.0 73

1/ Represents 100% of foreign cost

2/ 8.5% in 1982 and 7.5% in 1983-1984

Source:Mission Estimates

October 1981 - 46 -

TABLE 4.5

HAITI

SIXTH HIGHWAY PROJECT

IDA DisbursementSchedule (in millions of US dollars) Project Financial Policy IDA Fiscal Year Quarterly CumulativeDisbursement Analysis 1/ and Quarter Disbursed Amount % Department-

FY 1983

December 1982 0.5 0.5 4 14

June 1983 3.0 3.5 25 37

FY 1984

December 1983 4.3 7.8 56 81

June 1984 2.6 10.4 74 90

FY 1985

December 1984 2.5 12.9 92 96

June 1985 1.1 14.0 100 100

I/ Profile of past IDA disbursementfor highway projects in Haiti

Source: Mission Estimates

February 1982 - 47 - TABLE 5.1

HAITI

SIXTH HIGHWAY PROJECT

Bridges and Other Drainage Structures Component

Results of Benefit-Cost Analysis (Net present value in thousands of US dollars) NPV of Benefits Section IRR at 8% No. Name in % B/C Ratio Discount Rate

1.2 Trou du Nord-Terrier Rouge 45 4.8 109.8 1.3 Terrier Rouge-Fort Liberte Inters. 67 10.4 264.6 1.4 Fort Liberte-Quanaminthe-Port Massacre(Dominican border) 17 1.8 431.6 2.1 Limbe-Port Margot 20 2.3 262.4 2.2 Port Margot -le Borgne 36 5.5 4636.2 4.1-02 Crrf. Dolant-Gros Morne 2168 n.a. n.a. 4.2-06/09 Gros Morne-Port de Paix 200 n.a. n.a. 5.1 Port de Paix-St. Louis du Nord 34 4.O 1889.8 8.1/2 Crrf. Menard-Dondon-St.Raphael 34 3.9 1437.7 8.5 Pont Guayamouc-Hinche 44 5.1 235.4 11.2-01 Croise de Bouquets-Thomazeau Inters.119 n.a. n.a. 11.3 Crrf. Thomazeau-Mirebalais 206 n.a. n.a. 12.1 Mirebalais-Las Cahobas 1120 35.5 5485.5 12.2-02/03 Las Cahobas-Belladere-Border 101 n.a. n.a. 16.1 Jacmel-Cayes Jacmel 24 2.5 206.8 20.0 Cavaillon-Barraderes 87 8.0 491.5 21.2-02 Houck-Port Salut 18 n.a. n.a. 24.0 Pont sur la Riviere de la Grande 71 42.6 519.2

IRR = Internal Rate of Return B/C = Benefit/Cost NPV = Net Present Value CRRF= Carrefour or Intersection

Source: DIWI

September 1981 - 48 - TABLE 5.2

HAITI SIXTH HIGHWAY PROJECT Bridges and Other Drainage Structures Component

Vehicle operating costs per km on different road surfaces with nine representative vehicles (in US cents)

_- -r-l @ l * i____ - _ i---

Private c o vV 15,43 17,78 25,79 22.81 29,10 41,86 50,28

Passenger Q'Q | 18,491,04 26,83 24,17 30,84 44,37 53.30 Car Q.,Q 17.26 9 I91 28,19 26,00 33,17 47,58 57,32

C 0 V 17,04 19,13 26,02 1 23,88 29,45 38,75 47,17 Tap-Tap Q'QQ, 7.s8J 20,09 27,32 25,55 31,51 41,46 50,47 Q" Q- 19,13 21,81 29,66 27,46 33,87 44,56 54,25

C 0 V 7,41 19,89 29,33 26,29 35,01 45,15 58,95 Mini-bus | Q, !8,59 20,89 30,B0 28,13 37,46 48,31 63,08 _Q.^ _ _Q2.4l2,13 22,27 33,44 30,24 40,25 51,92 67,80

C 0 V 36,22 I 41,27 52,501 49,41 63,13 78,33 109,35

Truck Q, Q, 3U, 3 4 3,33| 55,13 52,87 67,55 83,81 l17,02 Q| Q. 411,93 46,b4 59 33 57, 32 l3,23 90,86 126.86

4-wheel c o v 25,'94 29,56 38,33 33,54 42,83 51,40 6m168 Drive Q' Q, 26,9(9 30,74 401,49 35,09 14.98 53,97 64,76 Q" Q- 29,0(5 33,11 I 43,6i 37,90 48,40 58,08 6s,70

C 01V 29,61 33,12 42,6; 40,07 46,72 64,54 85.13 Pick-up Q,'Q 30,79 34,78V 44,30 42.41 49,52 68,41 90.24 " Q9. 33,16 31,(0) 43,2Z 45,68 53,26 73,565 97(15

C 0 V 24,40 26,51 36,95 32,39 43,91 56.91 71,36 Light Q, Q,' 25,62 27,84 38,80 34,65 46, 98 60,89 76.36 !Truck Q Q.. 21,57 | 29,96 41i 76 37,57 o50,93 66,01 62 78

Hteavy |c o v 51,5S 55,24 71,13 67,23 86,7o 115,h6 159,28

Truck Q,Q' * 54,13 1 1,3)| 74,68 71,93 92,77 123.75 1|7043 _ I__7"QQ- 57,65 64,68 80 38 77,99 100,57 134,16 184,76

Tanker C O V 64,81 71,(19 86,44 80,90 104,39 135,20 i76,90 |Truck Q, Q* 681(5 75,-4 A1 76 86.56 111,70 144,66 |89,29 °0" oI0-= ! 73,23 881,33 47 67 . .3,R4 121,09 156,83 205,21

1 Q : Modern well maintained flat road with adequate drainage and a bituminous surface allowing easy circulation at average speeds of 70-80 km/h for passenger cars and 60 km/h for most other vehicles. 2 Q : Reasonbly good bituminous road with acceptable level of maintenance, slightly deteriorated riding surface, average speeds 60 and 50 km/h for passenger cars and other vehicles respectively. 3 Q : Bituminous road with important damage on the riding surface, average speeds 40 and 30 km/h respectively Q Good gravel road during dry season but with drainage problems during rainy season. Average speed 45 km/h for passenger cars but substantially slower after rain. Q Gravel or earth roads with damaged riding surface, protruding large stones and pebbles and very difficult sections after rain. Frequent changes in speed necessary even in dry season. Average speed 25-30 km/h. 6 Q : Road with riding surface almost exclusively in loose large stones. Impassable for light vehicles during and immediately after rains. Average speed 15-20 km/h. 7 Q : Rocky track or track through swampy terrain. During and after rain only passable by 4-wheel drive vehicles. Average speed in dry season 10 km/h for jeeps and 5-10 km/h for trucks. Q': Curvy bituminous surface road with longitudinal slopes of 3-6%. Q": Curvy bituminous surface road with longitudinal slopes of 6-12%. Q*: Curvy gravel road or track with longitudinal slopes of 3-6%. Q**: Curvy gravel road or track with slopes of 6-12%.

Source: DIWI

September 1981 - 49 - TABLE 5.3 Page 1 of 2 HAITI

SIXTH HIGHWAY PROJECT

Bridges and Other Drainage Structures Component

Present and Projected Future State of Bridges and other Structures and their Access Roads (length in meters) Future Status Structure Length Without Project With Project Identification Section Status!/ Year of Year of No. Studied 1980 Quality Modification Quality Modification

1.2-01 200 Q4 Q7 1986 * *

1.3-01 100 Q4 Q7 1990 * * 1.3-02 100 Q4 Q7 1986 Q7 1996 1.3-03 100 Q4 Q7 1986 Q7 1996

1.4-01 100 Q4 Q7 1986 Q7 1993 1.4-02 100 Q4 Q7 1991 Q7 2001 1.4-03 650 Q4 Q7 1982 Q1 1983 1.4-04 100 Q4 Q7 1984 Q7 1989 1.4-05 100 Q4 Q7 1991 Q7 2001 1.4-06 100 Q4 Q7 1986 Q7 1996

2.1-01 50 Q4 Q7 1982 Q4 1983 2.1-02 50 Q4 Q7 1982 Q4 1983 2.1-03 50 Q4 Q7 1982 Q4 1983 2.1-04 50 Q4 Q7 1982 Q4 1983 2.1-05 50 Q4 Q7 1982 Q4 1983

2.2-02 50 Q4 Q7 1982 Q4 1983

4.1-02 100 Q4 Q7 1984 Q7 1989

4.2-06 100 Q4 Q7 1986 Q7 1993 4.2-09 200 Q4 Q7 1986 Q7 2001

5.1-01 50 Q5 Q7 1982 Q4 1983 5.1-02 50 Q6 Q7 1982 Q5 1983 5.1-03 400 Q7 Q7 - Q1 1983 5.1-04 400 Q7 Q7 - Q1 1983 5.1-05 50 Q4 Q7 1982 Q4 1983 5.1-06 50 Q4 Q7 1982 Q4 1983 5.1-07 50 04 97 1982 Q4 1983

8.1-01 100 Q4 Q7 1991 * * 8.1-02 50 Q4 Q7 1982 Q4 1983 8.1-03 50 Q4 Q7 1982 Q4 1983 8.1-04 50 Q4 Q7 1982 Q4 1983 8.1-05 650 Q4 Q7 1982 Q1 1983

8.2-01 100 Q4 Q7 1986 Q7 1990 8.2-02 50 Q4 Q7 1982 Q4 1983 - 5C - TABLE 5.3 Page 2 of 2 HAITI

SIXTH HIGHWAY PROJECT

Bridges and other Drainage Structures Component

Present and Projected Future State of Bridges and other Structures and their Access Roads (length in Teters) Future Status Structure Length Without Project With Project Identification Section Status! Year of Year of No. Studied 1980 Quality Modification Quality Modification

8.5-01 100 Q1 Q7 1986 * *

11.2-01 100 Q1 Q4 1986 * *

11.3-01 400 Q7 Q7 1982 Ql 1983 11.3-03 400 Q7 Q7 1982 Q1 1983 11.3-04 500 Q7 Q7 1982 Q1 1983

12.1-01 50 Q4 Q7 1983 Q4 1983 12.1-02 100 Q4 Q7 1986 * * 12.1-03 100 -Q4 Q7 1986 * * 12.1-04 100 Q4 Q7 1986 * * 12.1-05 100 Q4 Q7 1986 Q4 1991 12.1-06 100 Q4 Q7 1986 Q4 1991 12.1-07 50 Q4 Q7 1983 Q4 1983 12.1-08 100 Q4 Q7 1986 * * 12.1-09 100 Q4 Q7 1986 Q4 1981

12.2-02 100 Q4 Q7 1989 * * 12.2-03 100 Q4 Q7 1986 * *

16.1-01 100 Q4 Q7 1986 Q7 1996 16.1-02 50 Q4 Q7 1982 Q4 1983 16.1-03 50 Q4 Q7 1982 Q4 1983 16.1-04 250 Q7 Q7 1982 Q4 1983

20.0-01 50 Q4 Q7 1982 Q4 1983 20.0-02 100 Q7 Q7 - Q4 1983 20.0-03 50 Q4 Q7 1982 Q4 1983

21.2-02 100 Q4 Q7 1986 Q7 1996

24.0-01 200 Ql Q7 1986 * *

* Modification outside projection period, after collapse of repaired bridges. ** Only passage for canoes. Source: DIWI

October 1981

1/ For definitions see Table 5.2. - 51 - TABLE 5.4

HAITI

SIXTH HIGHWAY PROJECT

Bridges and Other Drainage StructuresComponent

Results of SensitivityAnalysis

IRR in % No. of IRR of Constant Costs Constant Benefits road basic Benefits Benefits Only Costs Costs Priority Section run +20% -20% Traffic B +15% -15%

1 12.1 120 136 105 94 107 139 2 11.2 119 129 107 91 106 131 3 20.0 87 104 69 71 76 102 4 24.0 71 75 65 44 62 84 5 1.3 67 72 60 32 58 78 6 1.2 45 49 39 23 37 56 7 8.5 44 49 38 36 36 54 8 2.2 36 43 33 22 32 40 9 5.1 34 40 27 22 29 39 10 8.1/2 34 39 27 20 29 39 11 4.1 24 30 18 16 23 29 12 12.2 24 28 19 15 21 27 13 16.1 24 28 19 15 20 28 14 11.3 24 28 19 14 20 25 15 2.1 20 24 16 11 17 24 16 1.4 17 21 13 7 14 20

Source: DIWI

October 1981 - 52 -

TABLE 5.5

HAITI

SIXTH HIGHWAY PROJECT

Road RehabilitationComponent

Variations in Vehicle OperatingCosts with Changing Roughness (in US cents per km net of taxes)

Surface Condition Vehicle Operating Costs

"Roughness" Passenger 4-wheel Light Medium Heavy mm/km) Car drive Van Truck Truck Truck

2000 13.3 14.6 11.5 14.0 38.7 53.0

2500 14.3 16.0 12.5 15.1 40.2 55.3

3000 15.3 17.5 13.6 16.3 41.9 57.8

3500 16.3 19.1 14.7 17.5 43.6 60.5

4000 17.3 20.6 15.9 18.7 45.3 63.0

Source: SETEC

September 1981 - 53 - ANNEX 1

HAITI

SIXTH HIGHWAY PROJECT

Outline of Work Program for SAT

1. Planning

a. Updating of five-year plan (at least once a year)

b. Followup of executionof investmentprojects in a five-yearplan (continually)

c. Project preparation (as need occurs)

d. Plan realizationreports (annually)

2. Statistics

a. Prepare Annual Report of transportstatistics (first one in March 1982 and annually thereafter)

b. Execute traffic counts and analysis of traffic count data (thriceannually at selected points nationwide and when required locally)

c. Publish traffic count statistics (July 1982 and annually thereafter)

d. Prepare reports on truck axle load and dimensions limits enforcement(quarterly, as required by Section 3.07 of the DevelopmentCredit Agreement starting April 1982)

3. Studies

a. Superviseongoing road studies

- ports and coastal shipping - air transport studies

b. Establish standards (specifications)for transportinfrastructure for

- bridges and structures (1982) - main roads (1983) - feeder roads (1984)

c. Supervisepreparation of a manual on bridges and drainage structures constructionand maintenance (by September 1982)

February 1982 - 54 - ANNEX 2 Page 1

HAITI

SIXTH HIGHWAY PROJECT

Outline Terms-of Reference for TechnicalAssistance for the ComplementaryStudy of the Domestic ConstructionIndustry

1. General

1.1 The Study would make use of, update, and complement the 1977 report on the domestic constructionindustry prepared by Louis Berger International,Inc. for UNDP/IBRD (Chapter 12 of the National Transport Study). It would be executed in the period July through September 1982.

1.2 The objective of the study would be to set up action plans for strengtheningthe constructionindustry, and, in particular,for developing a basic educationand professionaltraining system, on the basis of an updated overview of the industry'senvironment, through which training needs would be defined in terms of curriculumand the number of trainees for each category.,

1.3 As a result of the review of the environmentof the industry,the study would also list other problems and constraintsaffecting the construc-- tion industry and, where applicable,would recommendactions to overcome those problems or constraints.

2. The Industry'sEnvironment

2.1 Legal and institutionalstatus of the industry, including:

- recognitionof the industry as a sector of the economy;

- laws (e.g., corporate,taxation, customs, labor) which apply to the industry;

- regulationsaffecting the industry: design, constructionand safety regulations;procurement of constructionservices by Government,para-statal and private corporations;supervision and payment of work in progress;

- the industry'sinstitutional base: existenceand strength of the industry'srepresentative association.

2.2 The demand for constructionservices (includingcivil and building constructionand road maintenance)to update and extend the Berger report's projectionsas a means to determine educationaland resource needs. The study of demand should include possible routine and periodic maintenance works and minor improvementswhich are ideally suited for the developmentof small domestic contractors,with a minimum requirementfor capital and technology. - 55 - ANNEX 2 Page 2

2.3 Fluctuation in the demand for construction services and its effect on the industry's resources (including trained personnel).

2.4 The companies which make up the Haitian construction industry: updating the Berger presentation by sampling only (i.e., a new survey would not be required) but including smaller and even potential contractors: discussion of their access into, or progression within, the industry through their participation in road improvement and maintenance work.

3. The Industry's Resources

(A) Human

3.1 Traditional sources of manual labor, skilled labor, operators, foremen, technicians, engineers and managers.

3.2 General education and professional training status of all categories of construction personnel, including, for field personnel, basic skills such as reading, writing and arithmetic.

3.3 Additional training or continuing education requirements for construction personnel. The trades or professions to be covered should include the following, grouped together or extended according to existing practice or, where appropriate, to the consultants' recommendations:

- Labor: building skills (including sub-trades);

- Lbabor: civil construction skills (operators, drivers and mechanics of mobile and static equipment);

- Foremen: building;

- Foremen: civil construction;

- Technicians: surveyors, cost accountants, paymasters, storekeepers, plant managers;

- Project Managers;

- Civil Engineers; and

- Managers.

(Both foremen categories to include labor-intensive technology.)

3.4 Numbers to be trained, to sustain expected growth and attrition within the industry.

3.5 Existing educational and training facilities. Proposals for adapting or extending those facilities for training construction industry personnel. - 56 - ANNEX 2 Page 3

3.6 On-the-jobtraining and certificationof skilledworkers. Existing systems, proposalsof improvements. On-the-job training of other categoriesof field and office employees. Technicalassistance requirements for on-the-jobtraining.

3.7 Existence of vocation or skills to start up as contractors. Entrepreneurialdrive, leading to the creation of new companies. Sources of new entrepreneurs. Particular attention should be paid to the development of small local contractors,specializing in labor-intensivetechnologies, particularlythrough the improvementand technificationof existing leadership systems. Potential access points to the industry; for example, housing constructionand road maintenanceand improvement.

3.8 The consultantsshould produce a detailed action plan related to the developmentof human resources for the constructionindustry. The plan should include:

(a) person or agency accountablefor results;

(b) a schedule of activities, in logical sequence;

(d) budgets: (i) of resourcesand

(ii) financial

linked to the above schedule and program.

(B) Equipment

3.9 Availabilityand future requirementsof constructionequipment.

3.10 Channels availableto contractorsfor the acquisitionof equipment, including:

- purchase; - SLELC (Servicede Location d'EquipementLourd de Construction); - other hire agencies; - inter-companyhires; - leasing.

3.11 Equipment repairs and maintenance,including:

- dealer service; - repair shops; and - availabilityof spare parts. - 57 - ANNEX 2 Page 4

3.12 Availability of construction materials. Constraints (if any) created by the lack of specific materials or by difficulties for importation or acquisition of materials.

(D) Financial Resources; Bonding; Insurances

3.13 Financial requirements and constraints of the domestic construction industry. Financial resources available to contractors, for long- and short-term requirements.

3.14 Bonding and insurance requirements and constraints. Bonding and insurance agencies; their adequacy to suit the construction industry's requiremants.

4. Labor-Intensive Construction Technology

4.1 A study of the present state of development and application of labor-intensive construction technology in Haiti, and of the problems and constraints which affect the spread of this technology. This study should be closely coordinated with the parallel Road Maintenance Technology Study (Annex 3).

4.2 Inter alia, the study will delve into the following topics:

- resources available for the Government to develop and apply labor-intensive technology. Existence of an institutional framework for planning and building rural works, including feeder roads;

- existence of standardized construction procedures and of a corps of trained personnel capable of directing labor-intensive work in the field;

- field productivities;

- viability of labor-intensive construction methods within the social and economic environment of Haiti, including a discussion of the effect of wage structures and existing communal and entrepreneurial leadership usage upon the development of labor- intensive technology; the most suitable organization for individual units and their regional groupings; methods of payment (piece work, task work, daily wages) and the system of payment (daily, weekly, in kind, in cash, etc.). - 58 - ANNEX 2 Page 5

5. Reports

5.1 The Consultant'sfinal report will include:

(i) a presentationof his findings in connectionwith the industry's environmentand resources, listing the principalproblems and constraintsin order of importance;

(ii) an action plan for the improvementof human resources,as specified in paragraph 3.8;

(iii) listing, in order of priority, of measures to be taken by the Governmentor contractorsto improve the industry. Proposal. of action plans, where applicable,presented in the manner set out in paragraph 3.8; and

(iv) recommendationsregarding the future developmentof labor-intensive constructionand maintenancetechnology, including the definitionof the assistancerequired by Haiti in this field. Proposal of action plans where applicable,presented in the manner set out in paragraph 3.8.

6. Personnel

6.1 The personnelrequirement for this study is one engineer/economist: for three man-months.

February 1982 - 59 -

ANNEX 3 Page 1

HAITI

SIXTH HIGHWAYPROJECT

Outline Terms of Reference for Technical Assistance for Final Design and Supervision of the Bridges and Other Drainage Structures Component (Phase II) 1/

Design (September 1981 through March 1982)

1. In 1980, TPTC contracted consultants (DIWI, Germany) to carry out the now completed Phase I study "Rehabilitation des Ponts en Haiti," financed under the Fifth Transportation Project (Credit 807-HA). Based on the study's findings, bridges and other drainage structures in need of reconstruction were selected for final design.

2. DIWI would assist contracted qualified Haitian Consultants to provide engineering services for the preparation of final designs for new bridges, culberts and concrete fords and for the rehabilitation of existing bridges (Tables 4.2 and 4.3) and to train Haitian Consultants in mini-computer technology applications using a desk computer to be purchased under the project.

3. DIWI prepared terms of reference for Haitian Consultants, evaluated consultants' proposals and made recommendations to the Government for the preparation of the short list; DIWI would also assist Haitian Consultants in the preparation of final engineering designs, paying particular attention to technical solutions, materials and construction methods appropriate to the local economy, bills of quantities, unit costs, and construction cost estimates; contract documents for tenders consistent with Bank Guidelines (July 1980); invitations to contractors, information to bidders, form of contract, form of performance bond, detailed construction specifications and other such information as TPTC may require.

4. DIWI would also ensure that the quality of the final designs would be suitable for international bidding and would assist TPTC in reviewing prequalification documents submitted by international and domestic contractors and make recommendations for the selection of experienced firms. It would train TPTC engineers and local consultants engaged in design and in the programing and operations of the programs for project-related structural designs, using computer facilities provided under the project.

1/ Phase I completed under Fifth Transport Project. - 60 - ANNEX 3 Page 2

Supervision of Civil Works (May 1982 through October 1983)

5. DIWI would carry out supervision of civil works with its own, and personnel assigned by TPTC, and would:

(a) ensure, with support of LNBTP, that the works are carried out in accordance with contract specifications and agreed implementation schedule (Table 4.5);

(b) train TPTC resident engineers to keep daily record book to register important events which relate to the execution of the civil works;

(c) review all required design modification prepared by Haitian consultants during the course of construction at the request of T]'TC;

(d) control construction costs and certify contractors' invoices submitted for payment;

(e) prepare detailed monthly reports for TPTC;

(f) prepare as-built drawings; and

(g) procure a set of programs for structural design for simple and continuous bridges of the type which may be considered for the final design by Haitian design consultants for the project and adopt such programs for the computer equipment purchased under the project. Selection of programs should be based primarily on their usefulness for the design project structures; however, programs for the process- ing of hydrological data and solutions to hydraulic flow and founda- tion design problems for bridges and culverts, as well as programs for the evaluation of cost effectiveness of proposed alternative structural designs, should also be made available.

Staffing

6. DIWI would furnish an estimated total of 45 man-months of services providing one chief engineer and one bridge engineer for the supervision of the civil works, and a training specialist in computer programing with a strong background in bridge design.

Personnel assigned by DIWI would be required to have the following minimum qualifications:

Chief Engineer: 15 years of acceptable experience in bridge design, of which 10 years in construction of structures, and a working knowledge of French.

Bridge Engineer: 10 years of relevant experience in bridge design and five years of construction experience and a working knowledge of French.

Programing Specialist: an engineer/economist with ten years of acceptable bridge design experience, and applicable computer design technology. Either the chief or the Bridge Engineer should have knowledge of appropriate technologies and adaptation of designs to local materials, skills, etc. - 61 - ANNEX 3 Page 3

Personnel required for the design and supervision of civil works

Haitian Consultants Estimated total man-months

It is estimated that design work will be divided into three separate lots

3 structural engineers 34

3 road engineers (for bridge approaches) 23

3 soil engineers 13

3 junior engineers 18

3 hydrologists 9

1 topographic crew 12

Other support personnel 137

Total 246

Supervision of Civil Works

International Consultants

1 chief engineer 30

1 bridge engineer 6

1 engineer/economist specialist in computer 9

Total 45

TPTC Supervision Personnel (each contract)

1 resident engineer 18

2 inspectors 36

1 topographic crew 18

Other support personnel secretaries, accountants, drivers 18

Total 90

February 1982 HAITI SIXTH HIGHWAY PROJECT BRIDGESAND OTHER STRUCTURESREHABILITATION INIPLEIVENTATIONSCHEDULE 1981-1983

1981 1982 1983 6 7 89 101 2 11 23 4 56 7 89 1 2 3 4 Eiii 7 8

Selection of Consultants

1 Final Engineering Designs for: '

- Bridge Repairs- m -

- Construction of New Drainage Structures--

Preqaliicaionof Contractors iiiiili t

8 dding Documents and Contracting: Invitation. 2 Evaluation and Contract Award1 '

- Bridge Repairs

-Construction of Nevv Drainage Structure

Execution of Civil VVorks

Bridige Repairs-

-Construction of New Drainage Structures-- Technical Assistance and Computer Training-

jj Designs for structures to be reconstructed under this program wvill be completed by Dctober 31, 1981 and further structures included in the supplementary program by March 31. 1982. 2/ Contracts vvill be let out for 4 or 5 lots at different times.WolBak2124 - 63 - ANNEX 4 Page 1

HAITI

SIXTH HIGHWAY PROJECT

Outline Terms of Reference for Technical Assistance for Final Engineering Design and Supervision of the Paved Road Rehabilitation Component

Final Engineering Design (July through December 1981)

1. TPTC has contracted consultants (Setec, France) and Sohico (Haiti) (joint venture) under the Fifth Transportation Project (Credit 807-HA) to carry out preliminary studies (Phase I) and to prepare final designs (Phase II) for the roads to be rehabilitated under this project. TPTC will require consultants to prepare final engineering designs for the Paved Road Rehabilitation Program based on a review of as-built drawings for the Northern Road, the results obtained from Phase I studies, and investigations carried out during Phase II, during which consultants will carry out additional geotechnical studies of subgrade support, measurement of pavement deflections, slope stability studies, determination of the adequacy of drainage and an overall evaluation of pavement conditions. Consultants will also carry out traffic counts, check axle loadings and actual load factors and prepare traffic projections for the design life of projected improvements. TPTC will extend the consultants' contract for the supervision of construction.

2. The following additional minimum soil testing program should be carried out to determine subgrade support and the quality of materials used in existing pavement structures:

Type and Number of Proposed Tests on Selected 90 Km of the Northern Road

Moisture Atterberg Sand In-place Proctor & Content Gradation Limits Equivalency Density CBR

Subgrade 72 72 72 32 50 50

Material Used in Road Construction 23 18 18 18 - -

3. Consultants will identify suitable borrow pits for materials needed to strengthen project roads and will select borrow pits whose materials can be transported to the construction site at least cost.

4. Consultants will obtain additional deflection measurements, using a Benkelman beam, define homogenous deflection zones, and correlate deflections with conventional tests made to determine soil support and condition of the pavement structure. A comparison of Phase II deflection results should be made with corresponding results obtained during Phase I; seasonal variations of deflections should also be determined. - 64 - ANNEX 4 Page 2

5. Consultants will identify areas where slope stability problems are in evidence, prepare topographic surveys of these areas showing their longitudinal profile and cross-sections, and recommend corrective measures to prevent future slides.

6. Consultants will review adequacy of both the existing surface drainage and the road's cross drainage, especially along the 50-km mountainous section where sidehill cuts with long steep grades cause high velocity water flows.

7. Inventory of the existing pavement prepared by consultants should identify locations and causes of edge and lane joint cracks, reveling, bleeding, pot holes, whipping of aggregates and other pavement deficiencies.

8. Consultants will carry out an eight-day traffic count and a survey of vehicle loadings, checking all trucks with over 3.5-ton capacity. Results of the survey should be used to prepare a histogram of axle loadings, from which the effect of actual traffic loadings in terms of equivalent 8.2-ton axle loads could be determined.

9. Consultants will prepare bills of quantities and final project cost estimates based on the hypothesis that construction works could be let out in one or two lots. The latter would result in smaller size contracts, allowing a greater number of Haitian firms to present bids. A tradeoff analysis should be carried out to propose optional solutions based on estimated construction contract costs for the one- versus the two-lot approach and to recommend the least cost solution.

10. Consultants will prepare complete final design plans in a format suitable for as-built drawings; bidding documents will be in accordance with Bank Guidelines for ICB.

Supervision of Civil Works (July 1982 through December 1983)

11. TPTC will require consultants to furnish management services to ensure a sound and efficient inspection policy for the execution of civil works in accordance with approved engineering designs. These sessions will include, but not be limited to:

(a) review of bids received from contractors and recommendations to TPTC regarding award of contracts;

(b) review of proposed schedules and procedures for inspection and construction, quality control, measurement of partial and final quantities, acceptance of completed work and payments to contractors;

(d) review of work certifications and recommendations to TPTC for payments to contractors;

(e) carrying out, through LNBTP, necessary engineering tests of materials employed in construction with regard to their conformance with design specifications; and

(f) preparation of monthly reports on the progress of works for trans- mittal to the Association through TPTC. These reports should include, for each contractor, a list of equipment on work site and its condition.

12. No work order changes for modification of engineering design would be permitted without written authorization from TPTC.

13. Adequate records of the consultants' daily administrative and technical activities would be available to TPTC and the Bank upon request.

14. TPTC would furnish adequate transportation for consultants and TPTC supervisory personnel, make available the services of LNBTP soil and materials laboratory and provide the necessary administrative support.

15. Personnel required for supervision would include the following qualified staff:

Consultants (all works) Man-months

1 chief engineer (Setec) 20.5

1 engineer (Sohico) 20.5

Short-term specialists in pavements, crushing plants and earth slides (Setec-) 2.0

Total consultants 43.0

TPTC personnel (each construction lot)

1 resident engineer 20.5

3 inspectors 60.0

1 topo, crew 20.0

Other support personnel--secretaries, accountants, drivers, watchmen 160.0

TOTAL TPTC 260.5

February 1982 HAITI SIXTH HIGHWAY PROJECT PAVED ROAD REHABILITATION IMVPLEMENTATION SCHEDULE 1981-1983

Prog,arn ~~~~~1981 1982 1983 Program B 01112 7 89 4 56 E1E 2 111 111 Paved Road Rehabilitation Program9 2 4 5 6_7 8 1 2 3 4 6 F 9-10 112

- Pinal Engineering-

- Prequalification of Contractors Preparation of Bidding Documertss

-- Invitation to Bid, Preparation of Offers

-Bid Evaluation

-Cor,tracting

-Civil Works-

-Supervisionr --

WVorldBank - 23250 - 67 -

ANNEX 5

HAITI

SIXTH HIGHWAY PROJECT

Outline Terms of Reference for Technical Assistance for a Study of Road Maintenance Technology

1. Review current practices in road maintenance and feeder road construction;

2. Identify equipment-intensive activities which could eventually be replaced by labor-intensive, appropriate technology and make recommendations;

3. Whenever such a substitution would be economically feasible, establish procedures to implement these recommendations;

4. In collaboration with SEPPRN, review TPTC's present mix of road maintenance, rehabilitation and minor improvements and propose procedures which could possibly result in a more cost-effective maintenance and road construction through increased rehabilitation and utilization of appropriate labor-intensive technology;

5. Based on the proposed recommendation for increased labor-intensive maintenance, if applicable, review, with the Government, the second tranche of maintenance equipment to be purchased under the proposed project and adjust equipment needs, as appropriate.

6. Coordinate with the expert in charge of the Study of the Domestic Construction Industry for all aspects related to labor-intensive technology and eventual execution of rehabilitation and periodic maintenance work by private contractors (Annex 4, paras 4.1 and 4.2).

7. The personnel requirement for this study is one engineer/economist for three man-months.

February 1982 - 68 - ANNEX 6

HAITI

SIXTH HIGHWAY PROJECT

Scope of Work for the Annual External Audit of Project Accounts

1. The audit should be carried out in accordance with generally accepted audit standards.

2. The audit should comment on the accounting principles adopted in the keeping of project accounts, and any changes incurred from one fiscal year to the other.

3. The audit program should include a review of systems of internal control and checks, in order to determine the degree of reliance that can be placed upon them, and the extent of testing that needs to be performed by the auditor.

4. The auditor should appraise the procedures for safeguarding assets, ensuring their proper use and that all transactions are accounted for accurately and properly.

5. The auditor should satisfy himself regarding the fairness and accuracy of the project accounts by obtaining sufficient supporting evidence through the examination of accounting records and supporting corroborative material, direct physical inspection, general observation, inquiries and confirmations, and necessary tests.

6. The auditor's report should consist of the auditor's opinion on the annual project accounts and of a Management Letter addressing the adequacy of the accounting and internal control systems and making relevant recommendations in that respect.

October 1981 - 69 - ANNEX 7 HAITI

SIXTH HIGHWAY PROJECT

SelectedDocuments and Data Available in the Project File

- Republiqued'Haiti, TPTC, SAT, Rehabilitationdes Ponts en Haiti, Tome I, Dossier Economique,Pieces Ecrites, Tome II, Dossier Technique,Pieces Ecrites, Tome III, Dossier Technique,Plans, Aout 1981, Dr. Ing. Walter - DIWI International,Consultants.

- Republiqued'Haiti, TPTC, Rehabilitationdes Routes Revetues en Haiti, Phase I, Etudes Techniqueset EconomiguesPreliminaires, Vol. I-1; Texte - DispositionsGenerales - Choix des Solutions- Recommendations,Vol. 1-2; Texte-EtudeTechnique Detaillee de Chaque Route, May 1981, SETEC International and SOHICO, Consultants.

- Republiqued'Haiti, TPTC, Rehabilitationdes Routes Revetues en Haiti, Note de Synthese Concernantles Etudes de Phase 1, 11 pp., SETEC International SOHICO, Consultants.

- Republiqued'Haiti, TPTC, Rehabilitationdes Routes Revetues en Haiti, Programme de RehabilitationRetenue a l'Issue de la Phase l-des Etudes, Reponses aux questionsposees par la mission d'Evaluationde la Banque Mondiale en Mai 1981, SETEC International,SOHICO, Consultants.

- Republiqued'Haiti, TPTC. Rehabilitationdes Routes Revetues en Haiti, Route de Mirebalais,Deviation de Gimbale, 27-5-81, SETEC International,SOHICO, Con- sultants.

- Republiqued'Haiti, TPTC, Plan Quinquenal1981-1986, mimeographed.

- Republique d'Haiti,Le Moniteur, Journal Official,

- Monday, January 3, 1977, Decret creant au sein du Department des TPTC un service denomme: Service de Controle du Poids des Vehicules.

- Thursday,August 9, 1978, Loi organique du Departementdes Travaux Publics, Transportset Communications. HAITI SIXTH HIGHWAY PROJECT MINISTRY OF PUBLICWORKS TRANSPORT AND COMMUNICATIONS PROPOSEDORGANIZATION CHART

MINISTRY OF T.P.T.C.

X ; ~~~SECRETARIAT

MANAGEMENT PROGRAM CHIEF COORDINATING EXECUTIVE ENGINEER UN IT

URBAN FINANCIAL ORGANIZATION AUTONOMOUS PLANNING PLANNING CONTROL AND METHODS TRANSPORTATION DEPARTMENT DEPARTMENT OFFICE DEPARTMENT (SATj ______l , _ 0

SUPPORT NATIONAL LABORATORY GEODESIC AND LEGAL ACCOUNTING AND ELECTRICITY WATERVWORKS SERVICES FOR BUILDINGS AND CARTOGRAPHIC DEPARTMENT ADMINISTRATIVE CONTROL DEPARTMENT PUBLICWVVORKS IF DEPARTMENT I F DEPARTMENT DEPARTMENT

EXECUTIVE VEHICLE WEIGHT CENTRAL URBAN ROADS CONSTRUCTION NATIONAL ROAD OPERATIONS CONTROL UNIT WORKSHOP DEPARTMENT ER N TEPARTMENT(SEPRRN)

FIELD EINLRGOA FIE OPERATIONS WORKSHOPS REGIONAL OFFICES

World Bank - 23166 HAITI SIXTH HIGHWAY PROJECT SEPRRN ORGANIZATION CHART

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VVorldB-nk -23129 HAITI SIXTH HIGHWAY PROJECT SEPRRN MAIN WORKSHOP ORGANIZATION CHART

| DIRECTOR OF WORKSHOPS l

SUPERINTENDENT RK15RCTNSUHOPSTHC

ADMNISTRATIONIC

QUALITY CONTROL CHIEF OF MAIN WORKSHOP ClNTA FILESA_

COMPONENT E HOP GENERALREPAIRS TOOLS WAREHOUSE SHOP T G TRUCE ~~EXCHANGE LAH HPSHOP SERVIC

ENGINES AND INJECTORS PREVENTIVE MAINTENANCE

HYDRAULIC SYSTEMS PAINTING

TRANSMISSIONS WELDING

ELECTRICAL AND BATTERIES RADIATOR AND TIFRE REPAIR

BRAKES AND CLUTCHES FWHEEL BALANCING AND ALIGNMENT

EQUIPMENT CLEANING

World B-nk - 23165

S~~~~~~~~~~~~~~~~~~~~~- HAITI SIXTH HIGHWAY PROJECT IMPLEMENTATIONSCHEDULE 1981-1984

1981 1982 1983 1984 Program 1 -1 34J2 j7 911 j 1 2T3 5 6 7 B 9 10 12

Credit Agreement Effectweness

Equipment Replacement Program Advertising

-- Invitation to Bid and Preparation of Offers Bid EvalaLatioo_

- Contracting

- Dehveries Bridge and Drainage Structure Rehabilitation Program

Final Engineering'/ _

PreqUalification of Contractors

- Invitation to Bid and Preparation of OffersZ_

Bid Evaluation

Contracting

- Civil Works -_ : _ _

- SupeV_smion Paved Road Rehabl ,tation Program - Final Engiiieering3/_

- Prequalification of Contractors - Preparation of Bidding Documenits - Invitation to BRdand Preparation of Offers

- Bid Evaluatiori

Corntracting I

- Civi Works m - - - Supervision - i - Maintenance Methodology Study Consiruiction Industry Study

______}

11 hngineersrngdesign for drainage structures to he reconstructed under this prolect to fan completed by Octoher 31, 1981 1 anid or the str,sctuies indicated in shesupplementary program bY March 31, 1982. 2/ Project will be divided into 4- 5 lots, and contracts for each lot to be let oait at different times. 3/ EI-mimeeringdes,qrns for the 90 Km of the North Road to be rehabilitated under this prolect to be ready by October 31, 1981; foi the Msrenala,s Rnaif by De-ember 1981 World Bank--23355 C

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