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FIL U Secondhighway Project Public Disclosure Authorized Tunisia

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FIL U Secondhighway Project Public Disclosure Authorized Tunisia ReportNo. 930-TUN e0 d y Appraisalof a FIL U SecondHighway Project Public Disclosure Authorized Tunisia December 4, 1975 RegionalProjects Department Europe,Middle Eastand North Africa RegionalOffice Not for Public Use Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the Worid Bank This document hasa restricteddistribution and may be used by recipients only In the performanceof their officiaiduties. Its contents may not otherwise be disclosedwithout World Bankauthorization. CURRENCYEQUIVALENTS (As of April 16, 1975) Currency Unit = Dinar (D) Dl = US$ 20 5974 Dl,OO = US$ 2597.4 Dl,,OOO,OOO US$ 2,597,400 US$1 D 0.385 SYSTEMOF WOEIGHTSAND MEASURES: METRIC Metric System British/US System 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) 2 = 0.62 miles (mi) 2 1 sq kilometer (km ) = 0386 sq miles (mi ) 1 liter (1) = 0.2200 Imperial gallons (Igal) = 0.2642 U.S. Gallons (gal) 1 metric ton (m ton) 25205 pounds ACRONYMSAND ABBREVIATIONS ADT - Average Daily Traffic BCEOM - Bureau Central de'Etudes pour les Equipement d'Outre-Mer CST - Commission Sectorielle des Transports DPC - Direction des Ponts et Chaussees ER - Economic Return GDP - Gross Domestic Product GNP - Gross National Product GP - Route de grands parcours MC - Route de moyennes communications MPW - Ministry of Public WJorks MTC - Ministry of Transport and Communications OPNT - Office des Ports Nationaux Tunisiens RVE - Route vicinale d'etat SCET - Societe Centrale pour l'Equipementdu Territoire SEM - Service d'Entretrien de Materiel SETEC - Societe d'Etudes Techniques et Economiques SGEE - Societe Generale d'Etude et d'Engineering SNCFT - Societe Nationale des Chemins de Fer Tunisiens SOMATRA - Societe de Materiel et de Travaux SOTUETEC - Societe Tunisienne d'Etudes Techniques et Economiques STUDI - Societe Tunisienne d'Ingenierie UNDP - United Nations Development Programme REPUBLIC OF TUNISIA FISCAL YEAR January 1 - December 31 APPRAISAL OF A SECOND HIGHWAYPROJECT TUNISIA TABLE OF CONTENTS Page No. SUMMARYAND CONCLUSIONS ...... ...................... i I. INTRODUCTION ....................................... 1 II. THE TRANSPORT SECTOR ............................... 1 A. Effects of Geography and Economic Growth on Transport ................................ B. The Transport System .................. 2 C. Transport Policy, Planning, and Coordination .. 3 D. Previous Projects ............................. 5 III. THE HIGHWAY SECTOR ............................ 5 A. The Network .................. .. 5 B. Traffic . .5 C. Administration . .6 D. Planning and Engineering ................ 6 E. Financing ............................. 7 F. Construction ............................ 7 G. Maintenance.. 8 H., Training ............................ 9 IV. THEPROJECT .......... .............................. 9 A. Objectives ................... ....... 9 B. Description .. 10 C. Engineering .. il D. Cost Estimate .. il E. Financing . .12 F. Implementation .. 12 G. Disbursements .................. 13 H. Environmental Impact ................. 13 This report was prepared by Messrs. G. Ludwig (Engineer) and H. Beenhakker (Economist). TABLE OF CONTENTS (Cont'd) Page No. V. ECONOMIC EVALUATION ................................ 13 A. Main Benefits and Beneficiaries.... ........... 13 B. Economic Evaluation ........................... 15 VI. RECOMMENDATIONS.................. ..................16 TABLES 1. Rail Transport;Main Freight, 1961-74 2. Sea Transport, 1961-73 3. Air Transport, 1961-73 4. Actual and Planned Investmentsby Sector, 1962-1976 (millionsof Dinars, current prices) 5. Actual and Planned Investmentsby Mode, 1962-76 (current prices) 6. Highway Network, 1975 7. Vehicle Fleet and Road Traffic, 1961-73 8. Road Traffic Estimates 9. Design Characteristicsof Project Roads 10. Highway Expenditures,1966-75 l1. Cost Estimates for Highway ImprovementWorks 12. Cost Estimates for Consultants'Services and Summary Cost Estimate 13. Physical, Financial and Economic Data of Highway Improvement Works 14. Results of Sensitivity Analyses of Cost and Benefit Streams 15. Average Vehicle Operating Costs 16. Average Characteristics of Typical Vehicles ANNEXES A. Transport Regulations,1968 Transport Survey and Proposed Rural Roadt Program B. TransportationProjects Previously financed by the Bank C. Highway Improvements D. Price Escalation Factors for Project Elements E. ImplementationSchedule F. Estimated Schedule of Disbursements CHART 15119 Organizationof the Ministry of Public Works and Highwray Administration MAP 11734 Highway Network and TransportationSystem APPRAISAL.OF A SECOND HIGHWAY PROJECT TUNISIA SUMMARY AND CONCLUSIONS i. The Government of Tunisia has asked the Bank to help finance the improvementof about 225 km of primary and secondaryhighways in the northern and central regions of the country, and consulting services. ii. The highway improvementsconsist of bypasses of the towns of Sousse, El-Djem and Sfax on the primary route GP1 (total 44.5 km), and the improvement of about 180 km of two-lane roads on the primary routes GP5 (Mornaghia-Medjez- el-Bab), GP6 (Beja-Jendouba),GP8 (Tunis-Bizerte)and MC 27/28 (Hammamet- Korba) including the constructionof bypasses of the towns of Hammamet, Nabeul and Beni Khiar. The constiltingservices comprise assistance to update the 1968 Transport Survey and to prepare a rural roads program. iii. The proposed loan amount would be US$28.0 million or 54% of the total project cost of US$52.3 million and would cover entirely the foreign exchange component. iv. The Direction des Ponts et Chaussees in the Ministry of Public Works will be responsiblefor the execution of the constructionworks and preparation of the rural roads program while the Ministry of Transport and Communicationswill be responsible for the updating of the 1968 Trans- port Survey. Constructioncontracts on the basis of unit prices will be awarded after internationalcompetitive bidding in accordancewith the Bank's Guidelines for Procurement. v. The project was appraised in March/April 1975. The beneficiaries of the project are primarily farmers and manufacturers,consumers and road transportpassengers. vi. The project is economicallysound and of high priority. On the basis of savings in highway user costs, the improvementworks are expected to yield an overall economic return in excess of 33%. Sensitivity analyses testing the overall economic return gave returns of approximately 28% and 27% assuming a 25% cost overrun and 25% reduction of benefits, respectively. vii. Based on expected economic lives of the roads or road sections to be improved, the project is suitable for a Bank loan of US$28.0 million for a term of 24 vears, including a four-year grace period. APPRAISALOF A SECOND HIGHWAY PROJECT TUNISIA I. INTRODUCTION 1.01 The Governmentof Tunisia has asked the Bank to help finance the improvementof about 225 km of highways in the northern and central regions. Feasibilitystudies and detailed engineeringfor the improvementswere fi- nanced under the First Highway Project carried out by the joint ventures of foreign and local consultantsBureau Central d'Etudes pour les Equipements d'Outre-Mer(BCEOM, France)/Societe Tuniîienne d'Ingenierie (STUDI), Renardet SAUTI (Italy) /SocieteGenerale d'Etudeset d'Engineering(SGEE), and Societe d'EtudesTechniques et Economiques(SETEC, France)/Societe Tunisienne d' Etudes Techniqueset Economiques(SOTUETEC). The project further includes the updatingby consultantsof a transportsurvey carried out by consultants (Italconsult)in 1967-68 (the 1968 TransportSurvey), financed by the United Nations DevelopmentProgramme (UNDP),with the Bank as executingagency, and technicalassistance for the preparationof a rural roads program. 1.02 The total cost of the project is estimatedat US$52.3 million equi- valent with a foreignexchange componentof about US$28.0 million or 54%. The loan of US$28.0million will cover these foreign exchange costs. 1.03 This report is based on the economic and engineeringstudies car- ried out by the above consultants,on informationprovided by the Government and on the findingsof an appraisalmission consistingof Messrs. G. Ludwig (Engineer)and H. Beenhakker(Economist) which visited the country in March/ April 1975. II. THE TRANSPORTSECTOR A. Effects of Geography and Economic Growth on Transport 2.01 Tunisia, with an area of 164,000km 2 or about one-quarterthat of France, is bordered by the Mediterraneanto the north and east, Algeria to the west, and Libya to the southeast. Its estimatedpopulation of 5.7 mil- lion is increasingat about 2.4% per annum. Forty-fivepercent of the popula- tion lives in the four northeasterncoastal provincesof Tunis, Sousse, Sfax and Bizerte,where populationdensity approaches100 per km2, as opposed to fewer than 20 inhabitantsper km2 in the southwesterninterior. The south is characterizedby large areas of infertiledesert. - 2 - 2.02 Between 1962, the beginning of the first decade of planned develop- ment, and 1974 per capita Gross National Product (GNP) in constant (1966) prices increasedby 4% annually. From 1964-74 the share of industry, including mining, petroleum,manufacturing, construction and tourîom increased from 23 to 35% of GDP while that of agriculture remained around 21% and that of serv- ices correspondinglydeclined. The principalsources of foreign exchange are crude oil, phosphates,tourisL: and olive oil. 2.03 Since the "Ten-Year Perspectives" (1962-71)vas published, important changes in investment policies have been introduced. Untîl the end of that period, the Government committed
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