RESTRICTED Report No. TO-442b Public Disclosure Authorized This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized

APPRAISAL OF

A ROAD PROJECT

MAURITANIA Public Disclosure Authorized

December 11, 1964 Public Disclosure Authorized

Department of Technical Operations CURRENRCY EQUIVALEN"S

Unite: Franc de l2 Communautc F'inapnciore Africaine (CPFA. f£anc)

1 CIFA franc = U. S. $0. 00A 247 CFA fzanco = U. S. $1 1 million CO.A. franca = U. S. $4, 0oii U. S. $1 million = 247 7inlion cFA f£rnca

APPRAISAL OF ROAD PROJECT

Table of Contents

Page

SUMMARY

I. INTRODUCTION 1

II. BACKGROUND INFORMATION 1

A. General 1 B. Transport 2 C. Transport Costs and their Influence on Prices 4 III. THE ROAD SYSTEM 4 A. Classification and Conditions of Roads 4 B. Administration of Roads 5 C. Road Expenditures and Financing 5 D. Road Development Plans 7 E. Design Standards and Specifications 8 F. Execution of Construction 8 G. Road Maintenance 8

IV. THE PROJECT 9

A. Description 9 B. Engineering - Design Standards 10 C. Maintenance 11 D. Cost of the Project 11 E. Financing 12 F. Execution 13 V. ECONOMIC JUSTIFICATION 14

VI. CONCLUSIONS AND RECOMMENDATIONS 17

TABLES

1. Classification of National Roads 2. Highway Expenditures 1958-1963 3. Design Standards 4. Estimated Truck Operating Costs Table of Contents

(Conttd.)

CHARTS

1. Organization Chart - Ministry of Construction, Public Works and Transport

2. Organization Chart - Directorate of Technical Services

MAP

Republic of Mauritania: Road Project MAURITANIA

HIGHWAY PROJECT

SUMMARY

,he Government of the Islamic Republic of Mauritania has asked the nal Development Association to finance part of the cost of a highway aich consists of:

a. the construction of a new 200 km road between and ; and,

bo, the employment of consultants for the engineering and supervision of construction, and for a general road maintenance study.

ii. The total cost of the Project is estimated at about CFA Francs 2,5C0 million, or US$10.0 million equivalent, of which the foreign component is about US$7.0 million equivalent.

iii. The Project, which is economically justified, is a necessary part of the basic infrastructure of the country and the means whereby Mauritania may take a greater part in its own foreign trade, instead of being dependent on Senegalese ports and railroads as it is now. It would link the new capital city of Nouakchott, and its port, with Rosso which is the gateway to the important area of southeast Mauritania, iv. The main staff of the Public Works Department consists of'a limited number of competent expatriate engineers provided under an agreement with the Government of France. Consultants would be engaged to carry out the final engineering and supervise the construction work in the field. v. Contracts would be awarded after international competitive bidding. vi. A joint financing operation has been agreed in principle between the Association and the European Development Fund (FED), with the following participation in US$ equivalent: Government 0.1 million, FED 3q22 million and IDA 6.7 million. vii. The technical, economic and financial aspects of the Project have been discussed during negotiations in Brussels with FED and the Government and found satisfactory. The Project is suitable for an IDA Credit of US$6.7 million. APPRAISAL OF A ROAD PROJECT: MAURITANIA

I. INTRODUCTION

1. The Government of the Islamic Republic of Mauritania 1/ has re- quested financial assistance from the International DevelopmentCAssociation (IDA) and the European Development Fund (FED) to meet part of the costs of a road project. The Project consists of (a) the construction of a new 200 km road between Nouakchott, the capital, and Rosso on the River, and (b) the employment of consultants to carry out final engineering and supervision of the Project, and a general study of road maintenance.

2, Transport in Mauritania has been studied by the Societe d'Etudes Pour le Developpement Economique et Social (SEDES), a French consulting agency. The Bureau Central dlEtudes d'Outre-Mer (BCEOM), another French technical agency, has made an engineering study of the road. These studies were financed by the French Government's Fond d'Aide et de Cooperation (FAC).

3. In April 1964 an IDA mission visited Mauritania to appraise the Project. The mission worked closely with the consulting engineers and with the FAC resident mission in Nouakchott. This report is based on various reports of SEDES and BCEOM and on information obtained by the IDA mission from government and private sources.

,. The joint financing of the Project by IDA and FED has been discussed during negotiations held in Brussels in November 196h; agreements have been reached in principle subject to the approval by the Executive Directors of the Association and by the Commission of the European Economic Community.

II. BACKGROUND

A. General

5. Mauritania, a former member of the Federation of French West Africa, became independent in 1960, The country is twice the size of France, ex- tending over 800 miles north and northeastwards into the Sahara from the which forms the southern boundary of the country. On the west it is bounded by the Atlantic Ocean and Rio de Oro (Spanish Sahara), on the northeast by Algeria, on the east by the Mali Republic and on the south by Senegal,

6. The most northerly part of the country is a region of sand, rocks, limited rainfall and, occasionally, enough sparse grass to feed the camels, goats and sheep of nomadic herdsmen. It is in this region that important iron-ore deposits are being worked by MIFERMA 2/. South of the desert is a mountainous region with sufficient rainfall to support the small groups of

1/ For brevity, referred to hereafter as Mauritania.

2/ Societe Anonyme des Mines de Fer de Mauritanie, to whom a Bank Loan of US$66 million was made in 1960. (249-Fr.) - 2 - population which cluster around scattered palm groves. The remainder of the country, except for the flood plain of the Senegal River where settled farmers till the alluvial soils, is a land of dunes, gum trees (acacia) and coarse grasses where large numbers of livestock are grazed by nomadic herdsmen on a seasonal movement pattern4

7. The countryts total population is believed to be about one million people of which about 75 percent are nomadic Moors (from whom the country derives its name). Their pattern of life revolves around the movement of their herds in search of grass and water. These nomadic people have limited diets made up of camelTs milk, millet, dates, green tea and sugar. Most of the remaining population are people of Negro origin who are concentrated in the fertile Senegal River valley where they grow such crops as millet, maize, vegetables and small amounts of peanuts and rice for local consumption.

8. The principal agricultural export overseas is some 3,000 - 4,000 metric tons of gum arabic per year. Livestock which is exported in large volumes on-the-hoof to neighboring countries, Senegal and Mali, is the principal source of cash incomes. Exports of iron-ore from MIFERMA have begun and are expected to be 6 million tons a year starting from 1966. Important copper deposits at Akjoujt may be exploited soon and exported via Nouakchott, some 200 miles to the southwest, where the country's new capital and a new wharf are being built with financial assistance from France and the European Development Fund (FED), respectively. Three companies are actively exploring for oil. Off Port-Etienne, in the north, one of the largest concentrations of fish in the world is said to exist. Fish drying, canning and export facilities have been developed at this growing port from which the country's iron-ore exports are also shipped.

9. Since independence Mauritania has depended heavily on France for both economic and technical aid and budgetary support, The MIFERMA project, however, when it comes into full operation is expected to add 2.5 million dollars annually to the Government revenues. This growth in budget revenues, however, is unlikely to do more than offset the normal growth in Government expenditures.

B, Transport

10. Mauritania has a traditional and a modern transport sector. The traditional sector is particularly important for the distribution of food- stuffs and imported consumer goods. Camels carry green tea, sugar, millet flour, cloth and kerosene to the widely scattered settlements and nomadic groups found in the north and center of the country. On the Senegal River many light river craft (pirogues) are used to carry rice and other locally grown foodstuffs from Senegal to Mauritania which is short of such products. The amount of this traffic is not known but it is especially active in the rainy season when, because of inadequate roads, most of southeast Mauritania -3-

is isolated,

11. The modern transport sector is relatively undeveloped and restrict- ed in its coverage. Two Senegalese-owned and based steamer companies operate on the river. The volume of traffic destined for Mauritania, which consists mainly of construction materials, petroleum products and imported consumer goods, is small (about 15,000 tons annually), and does not appear to be increasing. River transport is hampered by the lack of navigational aids, old equipment, a seriously unbalanced traffic flow and the suspension of operations above Rosso for about 5 months each year. Cabotage trade between Dakar (Senegal) and the river ports has almost disappeared. It is handi- capped by the sand-bar at the river mouth and by the lack of regular service of the Senegal railways. Because the Senegal frontier lies along the north bank of the river, the development of river transport and the improvement of the river is outside the control of Mauritania.

12. From Port-Etienne, 600 km north of the Senegal River, there is a 670 km railway running east and north to the iron-ore deposits at Fort Gouraud. Although the railway provides some facilities for public traffic, its primary purpose is to move the ore to MIFERMAts own port facilities.

13. As a result of the long distances between the main centers and the insufficient surface transport facilities, air transport is significant and gaining in importance. There are 25 airfields and airstrips in the country. There is a growing traffic in frozen meat from Kaedi, in the southeast, direct to Nouakchott, Port-Etienne and to the Canary Islands.

1h. Given the limitations of the alternative means of transport or their high construction, improvement or operating costs, and in the absence of large flows of bulk commodities or passenger traffic, road transport will be of fundamental importance in the growth of the economy. At present, however, the industry is in its infancy partly because of the very small and rudimentary network, which comprises about 7,000 km of low-type roads and tracks. At June 1963 there were some 3,700 registered motor vehicles in the country, of which 1,100 were private cars, 400 specialized vehicles (fuel tankers, ambulances, etc.), 120 tractor units and 2,080 trucks of various sizes. It is too early to identify any long term growth rates in the vehicle fleet. Prior to independence, many of the vehicles operating in Mauritania were registered and based in Senegal. Some of these were transferred into Mauritania after independence and recorded there as new registrations. Others of the new registrations are substitutes for vehicles left in Senegalt The construction of the new capital and the new wharf at Nouakchott, the development of iron-mining and the creation of the new administration have given an initial impetus to the growth of motor traffic.

15. An analysis of existing vehicle registrations shows, for example, that about 60 percent of all vehicles are less than 5 years of age. A large proportion of these, however, are private cars which are used only in the Nouakchott and Port-Etienne areas. The commonest type of truck in use out- side of the towns is gasoline powered and of 4.5 - 6.5 tons carrying capacity. A small but highly important group of 9 - 13 ton capacity trucks is owned mainly by one firm specializing in the distribution of bulk petroleum products and the shipment of full truck loads into Mauritania from St. Louis and Dakar over the Senegal river ferry. Other than for this firm's activities, a large volume of imports are trucked to the ferry at Rosso by Senegalese transporters and then transshipped onto the vehicles of Mauritanian oper- ators.

C. Transport Costs and their Influence on Prices

16. The average consumer in Mauritania pays much more for imported goods than his generally richer Senegalese counterpart and particularly those in Dakar. For example, until recently the transport costs on a ton of sugar moved from Dakar to St. Louis by rail, and then by road to Nouakchott was US$40.00; to Kaedi US$48.00; to US$80.00; and to Aioun el Atrouss US$102.00. These costs are partly a function of the long distances involved, e.g. 560 km to Nouakchott, 680 km to Kaedi, 1,040 km to Tidjikja and 1,240 krn to Aioun. But more significantly, the high costs of transport are due to the poor condition of roads and tracks in Mauritania which keep vehicle operating costs high, and also to the lack of return traffic. There is, for example, only a negligible amount of agricultural produce available for export and, until recently, there have been no large urban areas needing daily supplies of local foodstuffs or generating over-the-road passenger journeys. As a result, the costs of returning the empty vehicles are included in the outward tariff.

17. Traders profit margins are high because of the risks of damage resulting from transshipment from rail or river craft, before being trucked t over Mauritania s poor roads, and the need to stockpile more goods than would be required if roads were continously open to traffic. In addition, towards the end of the rainy season when much of southeast Mauritania has been closed to traffic, supplies run short and prices tend to rise by 20 - 30 percent. Any measures, therefore, which would contribute to a lowering of transport costs or to a continuous flow of supplies would help reduce price levels and thereby raise the standard of living or release income for other purchases, or act as incentives to enter the market orientated economy. The new wharf, the Nouakchott-Rosso and the Kaedi- all-weather roads are steps toward attaining this objective.

III. THE ROAD SYSTEM

A. Classification and Conditions of Roads

18. The total length of roads in Mauritania in April 1964, amounted to about 4,600 km of national roads and some 2,500 km of local roads which are mostly ungraded, and in the majority of cases, are merely desert tracks,

19. The only asphalt paved road in the country is a 6 km long experimental section between Nouakchott and Rosso. Only 3 km of this road have sufficient width of asphalt pavement to permit two lanes of traffic. About 854 km of the national roads (19 percent of the network), have been surfaced with a layer of local materials found nearby, and superior in quality to the foundation soil. These materials are satisfactory for use as a sub-base of a future higher class road. About 130 km of the national roads (3 percent of the network), have sea shell surfacing, i.e., they are constructed with sea shells found in deposits near the shore line, Most of the roads of this type may be acceptable as stage construction (see paragraph 50 below) since experience has proven that sea shell base courses are satisfactory. While a greater part of the sea shell and improved soil surfaced roads are regarded as all-weather roads, many of them are temporarily closed to truck traffic after heavy rains. The remaining 78 percent of the national network consists of earth roads, most of which are without drainage structures and nearly half of which are not even graded (Table 1).

B. Administration of Roads

20. Responsibility for the administration, design, construction and maintenance of highways, as well as the regulation and control of traffic and rates, is carried out through the Ministry of Construction, Public Works and Transport (Chart 1). Specific traffic regulations have been enacted for some roads, but adequate general road transport regulations have not yet bezn worked out.

21. The organization of the Directorate of Technical Services which belongs to the Ministry of Construction, Public Works and Transport is shown in Chart 20 This Directorate is subdivided into a Hydraulics Department, a Public Works Department and a Topographical Department. The Public Works Department, which is in charge of the design and construction of roads, air- ports, buildings, harbors and river ports, is well organized but short of supporting middle-level staff, All the senior administrative and engineering positions are held by Frenchmen supplied under technical assistance arrange- ments with the French Government. While they are experienced, they are too few in number to carr-y out the design and supervision of new road projects. The final engineering and supervision, therefore, would have to be carried out by foreign consultants employed specifically for the purpose.

C. Road Expenditures and Financing

Expenditures

22. With the exception of a 6 km road linking Nouakchott with the new wharf and financed by FED as part of the wharf project, there has been no new road construction in Mauritania since 1960 (see Table 2). In the years immediately preceding independence there was little in the way of new construction, although two useful bituminous surfaced experimental sections were constructed on the Nouakchott-Rosso road with FIDJES funds. Since 1960 FAC and FED funds have been used for engineering studies of the Kaedi-Kiffa and the Nouakchott-Rosso roads which are part of a long range scheme to open up southeast Mauritania to year round connection with the remainder of the country and especially the new capital and new wharf. -6-

23. Since 1960, therefore, almost all highway expenditures have been for maintenance purposes. Of these, a significant portion has been met indirectly by the French Government's support to the Mauritanian annual budget and by other assistance in the form of technical advisers and engineer- ing staff.

Revenue3

24. Before independence funds for highway expenditures came from the budget and the Road Fund of French West Africa. The Road Fund disappeared with the break-up of the Federation. Legislation passed in April and May, 1964 enacted a new Road Fund under the authority of an "Office National de Transport Public", a special government entity in charge of Public Transporta- tion. It is not yet decided which highway user revenues will be fed into this Fund nor what part will be utilized for road maintenance. Therefore, the consultants would have to review this problem within the scope of the general maintenance study.

25. On the basis of existing statistics it is not possible to determins accurately highway user revenue contributions to the annual budget, Informa- tion supplied from government sources suggests the following orders of magnitude for 1963:

CFA Francs million

Customs duties on vehicles 206

Customs duties on petroleum (excluding aviation fuels) 430

Customs duties on spare parts and tires 200

Other taxes on vehicle owners and road transport 125

Total 961 (US$309 million equivalent)

26. This suggests that about 20 percent of the total annual financial resources available to the Government derive from the highway sector. A comparison of the above figures with those for highway maintenance in 1963 (CFA Francs 108 million) shows a large excess of attributable income over expenditures. However, with the Kaedi-Kiffa road, the Project road and the higher maintenance expenditures that will become necessary as the highway system is extended and traffic increases, Mauritania will soon have to meet more substantial expenditures for the highway sector,

27. The actual rates borne by highway users in the form of customs duties and other taxes are quite high. The net gain in revenues from highway - 7 -

use that will derive from an increased "Mauritanization" of the import trade has not been determined, but there is no doubt that Mauritanian consumers contribute to the revenues of Senegal as a result of tho goods being transported from Dakar by Senegalese enterprises in the first instance. D. Road Development Plans

28. There is not yet a proper basis for planning an adequate transport infrastructure for Mauritania. The country's resources have not been fully surveyed and assessed. A large part of the population is still nomadic but is being gradually attracted to fixed development centers. Patterns of domestic trade have still to be established in many cases and await the building of an infrastructure. Distances are long and traffic volumes are small due to the low level of commercial exchanges. There are, however, sufficient existing focal points of population settlement and economic activity that can be identified as poles of development, On the existence of these and on estimates of future development growth rates, the consultants (SEDES) have attempted to establish a transport infrastructure plan for the period up to 1970,

29. The consultants' studies bring out the need for an extension and improvement of Mauritania's road network, without which it would be diffi- cult to end the isolation of outlying regions and to achieve the national unity and cohesion required for political and economic development. The studies also emphasize that new road development must be guided by the fact that priority in the allocation of highway funds must be for maintenance purposes, otherwise there is a danger of losing the small existing highway legacy.

30. The most important road projects identified by the consultants are the Project road, and a road from Kaedi to Kiffa in the southeast corner of Mauritania (see map) which FED has already agreed to finance. 31. The Project road between Nouakchott and Rosso is a 200 km section of the 1,500 km south-north national highway from Rosso on the Senegal River, via Nouakchott, Akjoujt, Atar, Fort Gouraud (the site of MIFERMAys operation), to the Algerian border in the northeast. Only minor improvements are en- visaged on the section north of Nouakchott in the next few years.

32. The present road development plan also envisages the construction of a 300 km road from Atar to Tidjikja, for which FAC has already agreed to finance the preliminary engineering studies, and the upgrading of some desert tracks so as to provide year-round connections.

33a The mission believes that these first steps in road planning accord well with Mauritania's infrastructure requirement and its available resources, and that the design standards envisaged are satisfactory. - 8 -

E. Design Standards and Specifications

34. Standard specifications for the construction of roads and bridges have not yet been issued by the Ministry of Construction, Public Works ard Transport. Highway design and location based on modern engineering principles is a comparatively recent practice in Mauritania. Many of the existing roads have evolved by the development of tracks and trails. W'ith a few notable exceptions, none of the roads have been scientifically located.

35. Geometric design does not present any difficulties in the desert regions. A design speed of 100 km per hour is established for most of the road projects, with the other elements of design being arranged so as to be compatible with this speed. Design standards are shown on Table 3. These standards, however, are not regarded as specific rules and are often lowered to keep investments to a minimum without materially reducing the service provided to the road user. Planning techniques provide means for the progressive improvement of road construction.

36. Roads located within a reasonable distance from sea shell deposits are designed with base courses of this material. Future design of these courses should be modelled after roads where satisfactory results were obtained,

F. Execution of Construction

37. Public works construction is carried out under unit price contracts, after public bidding, Contracts are normally awarded to the lowest responsible bidder. Responsibility in this sense means that the bidder must have suffici- ent working capital, that he can furnish the required guarantees and that his record is free from defaulted contracts.

38. There are no companies specializing in highway construction based in Mauritania. The four or five French companies which do operate in the country are usually directed from branch offices in Dakar,

39. In recent years costs for highway works in Mauritania have been high due to the isolated location of some of the roads and the high cost of equip- ment, materials and supplies, practically all of which have to be imported. Increased construction activity, however, should lead to lower construction costs. In neighboring Senegal, for example, increased highway construction activity has led to increased competition with the result that some of the recent bids for road work in the northern part of that country have shown a significant down trend in cost.

G. Road Maintenance

4o. Maintenance expenditures (see Table 2) in Mauritania decreased irmediately after independence because of the general budgetary situation. However, since 1962 they have begun to increase. CFA Francs 113 million - 9 -

(US$460,000 equivalent) have been budgeted for 1964..

41. About 70 percent of the annual maintenance expenditures are spent on the 1,000 km of existing road running between Rosso and Fort Gouraud, This concentration on one road is explained by the fact that the remainder of the network consists mainly of lightly trafficked track roads. Maintenance expenditures on such roads would be less useful than on the main road which connects economically important zones with the capital, and which now carries t raffic.

42. At present about OFA Francs h0 million (US$160,000 equivalent), or about US$760 per km per year, are spent on the present track road Nouakchott- Rosso which is to be replaced by the proposed new road. This is adequate considering the type of the road (sea shell and improved soil) and the present traffic of about 50 vehicles per day, 80 percent of which are trucks. Maintenance of the existing road will become increasingly expensive as traffic grows. The southern half of the road runs further away from the shoreline and the deposits of sea shells. Soils from scattered pits must be used to improve the quality of the foundation soil of the road. Pits close to the road are running out, and the new pits which are getting scarcer have to be opened up much further away. As a result, therefore, hauling distances for materials are getting longer and maintenance costs are rising.

43. Present maintenance operations on the Nouakchott,-Rosso road are well organized. Engineers of the Public Works Department have established the maintenance plan and their administration makes good use of the limited maintenance funds available,

4h4 New construction, the planned improvement of desert track roads, and the increase in traff-c will necessitate larger road maintenance ex- penditures. After MIFERMA comes into full operation it is hoped that its contribution to public revenues will allow the Government to meet its general budgetary expenditures without recourse to road user revenues which now go into the general revenue pool and which could then be used increasingly for highway maintenance and improvement purposes.

IV. THE PROJECT

A. Description

45. The present road from Nouakchott to Rosso runs in a general north- south direction for 214 km. There are not any important population centers along the road, The first 75 km southwards from Nouakchott run along an approximately 6 km wide depression that is below sea level but separated from the sea by a line of dunes which stretch northwards from the mouth of the Senegal River. This depression is inundated annually during the rainy season and more seriously every 5 to 10 years by heavy flooding of the Senegal River, reaching a depth of over 1 meter during the worst floods. It is estimated that the road is closed to traffic for an average of 15 days per year because of this flooding. This depression, called Aftout, was originally part of the sea bed, and it is here that the layer deposits of sea _ 10 -

shells are found. The road then traverses some 130 km of rolling sand dcines before reaching the flood plain of the Senegal River. This flood plain is crossed by a dike which is particularly slippery and dangerous during the rainy season. A section of 6 km (km 100 - 106 from Rosso) received a single surface treatment over an inadequately prepared subgrade in 1960 for ex- perimental purposes. Sea shells were used as aggregates for this treatment, which proved successful.

46. Traffic over the road amounts to some 40,000 to 45,000 tons annually and consists mainly of goods imported from Dakar, About one-half of these goods are for the purpose of constructing, equipping and supplying the new capital, and the other half for towns to the north of Nouakchott. Trucks tend to run empty in the southerly direction. An average of 50 vehicles, 80 percent being trucks, use the road daily. The poor condition of the road section across the sand dunes is a disincentive to highway use, particularly by light vehicles and modern buses.

47. The proposed road construction would start at km 4 from Nouakchott, at the intersection with the road coming from the wharf. It will consist of the construction of 200 km of all-weather road, sufficiently above the maximum flood level, and would form the only modern overland connection from the agriculturally productive Senegal River valley to the capital and the new wharf (see map).

B. Engineering - Design Standards

48. The feasibility study for the Project road, which was made by the consulting firm BCEOM, was financed by FAC. The study included the re- alignment of a considerable section and investigations of the availability and suitability of road materials. BCEOM was assisted in the soil studies by CEBTP (Centre Experimental du Batiment et des Travaux Public) of Paris, The CEBTP, which has a good laboratory in Dakar, is in charge of all soil investigations for the Government of Senegal and is staffed with experienced French soil experts.

49. Geometric Design Standards, shown in Table 3, are satisfactory and the Government has agreed to adopt them for the Project road, The length of the Project road has been reduced by 10 km because of its improved alignment. relative to the existing track road, The northern portion of the road, i.e., the first 100 km starting out from Nouakchott, which runs fairly close to the shoreline, would be constructed as a two-lane road, with an improved soil sub- base and a sea shell course, which appears adequate for the present traffic volume, The remaining 100 km from the end of the sea shell surfaced portion to Rosso would receive, in addition, a single bituminous surface treatment. The amount of bituminous paving was determine solely by maintenance cost considerations since the southern section of the road is located too far away from the sea shell pits for economic use of this material for maintenance, The Government, which had originally requested paving over the whole length, has accepted the mission's recommendation of stage construction which adopts minimum standards required at the present time and will later permit completion of paving when traffic volumes justify it, without the need to scrap any of the work done, - 11 -

50. The 100 km of sea shell surfaced road would have a roadway of 9 meters, consisting of 7-meter wide sea shell surfacing with two 1-meter wide shoulders. The shoulders would consist of pit run material. The material for the 18 centimeter thick sea shell course would be sea shell pit sand produced by separating shell sand from larger sized shells by screening. In the future, this course could be used as sub-base upon which about 10 centi.. meters of base course and the rest of the required pavement structure could be installed.

51. The same design has been adopted for the base course of the southern portion of the Project road. In addition a single asphalt surface treatment will be applied over a width of 5.50 meters, using screened sea shells as aggregates.

52. The BCEOM feasibility study, as amended after discussions with the Goverrment, has led to a Project which appears satisfactory as a basis for an IDA credit. However, final drawings, specifications, and contract docu- ments need to be prepared and would be subject to further final review by IDA and FED prior to the execution of the Project works.

53. During the final design period, the consultants would need to give further study to pavement design features. Alternate designs, such as sand asphalt or cement stabilization, would have to be examined and the most economic solution adopted.

5h. The road administration in Mauritania is not sufficiently staffed to carry out the Project, and consulting engineers would have to assist, not only in the preparation of bidding and contract documents and the analysis of bids, but also in the supervision of construction.

C. Maintenance

55e During the negotiations the Government agreed to improve maintenance on the Project road by appropriating a minimum of US$1,000 per km per year, during the first years. With regard to other national roads the consultants would have to include in their study a general review of maintenance con- ditions and prepare recommendations as to sound maintenance of the entire network in the future.

D. Cost of the Project

56. The total cost of the Project, as summarized in the table below, is estimated at about CFA Francs 2,500 million (US$10.0 million equivalent). The foreign currency component of the construction cost is estimated at 69 percent and of engineering at 80 percent, making an average of 70 percent for the total cost of the Project. _ 12 -

CFA Francs US$ Million equivalent Million equivalent

Preparation of final design, bidding documents and analysis of bids. 75 0.300

Supervision of construction and maintenance study. 75 0.300

Construction of the road Nouakchott-Rosso. 1,895 7.680

Contingencies (about 20 percent). 430 L.,740

2,475 10.020

57. The above cost estimate is based on unit prices derived from detailed cost studies. The estimate can be considered satisfactory with the addition of a contingency item of 20 percent to cover possible quantity variations and price increases during the construction period.

E. Financing

58. During joint negotiations in Brussels with representatives from FED and the Government of Mauritania, the following financing program has been arranged:

Government FED IDA Total

(In US$ millions, all contin- gencies included.)

Final design, bidding documents and analysis of bids. - 0.360 0.360

Supervision of construction and maintenance study. - - 0.360 0.360

Construction. 0.100 3,220 5.980 9.300

Total 0.100 3.220 6.700 10.020

In CFA Francs million equivalent. 25 795 1,655 2,h75

59. In order to accelerate the commencement of final design, it was agreed during negotiations that the cost of the engineering portion of the Project would be entirely covered by the IDA Credit. (See Table in para- graph 58). . 13 -'

60. It was also agreed that the Government would contribute a lump sum of CFA Francs 25 million (US$100,000 equivalent) to the construction cost as compensation for import duties and taxes accruing to Mauritania for goods imported for use on the Project, Due to the customs union with Senegal, the Government of Mauritania cannot declare any goods duty free and at present receives only about 8.6 percent of the import taxes jointly collected by the two countries. The payment of the above lump sum would be at the beginning of the construction work and would constitute part of the payment to be made to the contractor for mobilization expenses,

61. The amounts to be financed by FED (US$3.22 million) and IDA (US$5.98 million) for the construction of the Project road, represent 35 per- cent and 65 percent of the balance after payment of the share of the Govern- ment,

F, Execution

62. The engineering contract, drawings and specifications covering final design, and bidding and contracting documents for construction would be presented for comments to both FED and IDA before they are finalized. Con- struction would be awarded in one contract on the basis of international competitive bidding. Bidding and contracting procedures, in accordance with the customary principles of the Association, have been agreed upon by FED, IDA and the Government during the negotiations.

63. A tentative time schedule has been established as follows:

January 1965 Effectiveness of the IDA Credit and commencement of final designs.

March 1965 Signature of FED Agreement (Convention de Financement).

July 1965 Completion of final designs.

September 1965 Advertisement of construction contract and invitation for prequalification.

November 1965 Invitations to bid.

January 1966 Opening of bids.

February 1966 Award and signing of the contract.

March 1966 Starting of construction.

September 1968 Completion of construction (preliminary reception).

September 1969 Final reception of the works. 1-14 -

64. The following schedule of expenditures may be expected:

IDA FED Government Total

(US$ millions)

1965 0.300 - - 0.300 1966 2.400 1.200 00100 3,700 1967 2.400 1.200 - 3a600 1968 lo.00 0,520 - 1.520 1969 0.600 0,300 - 0900 6.700 3.220 0.100 10.020

V. ECONOMIC JUSTIFICATION

65. Mauritania became an independent country without a capital city, having been governed previously from St. Louis in Senegal. Valid climatic, political., economic and commercial considerations influenced the choice of Nouakchott, which lies some 200 km north of the mouth of the Senegal River and 6 km from the Atlantic coast, as the site for a new capital. Nouakchott is close to potentially important deposits of copper (with which gold is found), gypsum and ilmenite, which is used in ferro-titanium alloys and titanium pigments in paints and, possibly also, petroleum for which ex- ploration is being carried out by three companies. While, at the moment, Nouakchott is solely an administrative and political center, with the usual supporting service and trades and professions, it will become Mauritaniats main commercial and banking center as the countryts resources are developed and as Mauritania increases its share in its own foreign trade. Through FAC the French Government is giving substantial financial and technical assistance towards the construction of the new capital. It was envisaged originally that Nouakchott would have a population of some 12 - 15,000 people in 1970, but by the end of 1963 the population had reached 13OOO and is now forecast to reach about 25,000 in 1970.

66. Nouakchott is at present supplied with goods from Dakar after a 260 km train haul to St. Louis and then a 314 km truck journey via Rosso. Imported bulk petroleum products, consumer goods and construction materials required in the Rosso area and southeast Mauritania, which is agriculturally the most important and the most settled part of the country,come from Senegal. The area is now served mainly from St. Louis from where goods are transported by truck to Rosso and then redistributed over roads in the dry season, or during the wet season, by river craft to Boghe and Kaedi fram where goods are trucked after difficulty to the outlying towns, 67. The Mauritanian Government has a number of reasons for wanting to achieve a greater autonomy in its import/export trade. First, the Government cannot be sure whether it receives the proper amount of import duties and taxes to which it is entitled, Under an annually renegotiated arrangement - 15 -

Mauritania receives at present 82 percent of the annual total of import duties and taxes collected at the port of Dakar, It cannot be certain whether this is a reasonable share, since there is no recording of goods as they enter Mauritania after having been discharged at Dakar for consignment to commercial houses there or in St, Louis. Secondly, part of the income and profits generated by Mauritaniats imports accrue to the Senegalese based commercial houses with which Mauritania traders place their orders, No taxes can be levied on these Senegalese establishments by Mauritania; Thirdly, the Mauritanian Government loses further potential revenue because Mauritania traders have to maintain offices in Senegal. Senegal's economy benefits from the ensuing expenditure which could provide an important stimulus for Mauritania if paid there,

68. As a first step towards achieving greater autonomy in its external trading relations, which should result in higher fiscal revenues, a reduction of internal traffic costs and stimulation of the economy, a 300 meter long wharf is being built on the coast 6 Ian from Nouakchott with FED financial assistance.

69. The Project road would supply the Rosso area and southeast Mauritania with imports discharged in Nouakchott instead of Dakar. Importa- tion via Nouakchott wiharf will reduce the inland transport distance to Rosso from the present 360 km from Dakar to 200 Im, and avoid the costs of a ferry crossing over the Senegal River to Rosso. These distance savings, a reduction in the number of handlings or transshipment, together with the probable avoidance of some profit margins in the distribution process, are sufficient to offset the higher ocean freight rates that may reasonably be expected to be put on goods destined for Nouakchott wharf until such time as sea-borne traffic grows to significant volumes.

70. On the reasonable assumption of a 5 percent to 7 percent traffic growth, SEDES estimates that the total volume of goods to be transported with- in Mauritania may range from 163,000 - 225,000 tons in 1970. Of these total tonnages the volume expected to move over the Nouakchott-Rosso road will depend on the rate of growth of the economy and, still more decisive, on the degree of "Mauritanization" of trade,

71. SEDES has made detailed studies on transport costs of imported goods for different sub-regions in southeast Mauritania. On the basis of these studies SEDES concluded that Mauritania's future import traffic will be divided between the Nouakchott wharf and Dakar port so as to result in the movement of between 65,000 - 80,000 tons over the Project road in 1970. This traffic will consist of 20,000 tons of fuel, 35,000 - 50,000 tons of other products southbound. In addition there will be a northbound movement of 10,000 tons of gum and millet.

72. In order to estimate the probable average daily number of vehicles using the road as a basis for judging the appropriateness of the design standards of the road, and in order to calculate the economies in transport and road maintenance costs, a figure of 65,000 tons in 1970 may be accepted as a reasonable minimum. A maximum of 100,000 tons has been taken by the mission in view of the fact that the economy and Nouakchott, in particular, appear to be growing much faster than anticipated in the - 16 -

consultants' studies. Beyond 1970 traffic is projected to increase at 5 per- cent per year, which, in the Bank's observations, is a lower rate than that generally experienced by countries in the early stages of motorization and economic development.

73. The total number of trucks, buses and automobiles expected to use the road daily in 1970 is 90 - 130 vehicles, On the basis of the Bank's experience and generally accepted engineering standards these volumes are sufficient to justify the overall design standards of the road, after allowance for the special maintenance circumstances of the southern half of the Project road,

74. The construction of the Project road is the cheapest and most practicable link between Nouakchott and the southeast region. The alternative of air freight has been fully examined but discounted as too costly and in- flexible,

75. The immediately measurable benefits of the new road would be to lower the costs of vehicle operations and a saving in the future maintenance cost of the highway. At present, the average costs of truck operations per ton-km in Mauritania are CFA Francs 24 (US16¢ per ton-mile equivalent) (Table 4). This high figure results, partly from the posr condition of roads which not only shortens the life of vehicles, increases fuel, tire and brake wear, but also as a result of traffic interruption, delays and slow speeds, prevents a full utilization of the potential carrying capacity available. The general scarcity of return loads which, as pointed out above, means the costs of returning the vehicles empty have to be borne by the outward shipper, tending to inflate ton-km costs also. For certain runs an exceptionally high freight rate of 30 CFA Francs per ton-km, or US20¢ per ton-mile equivalent, has been recently approved by the Government,

76. The construction of the Project road is expected to reduce costs per ton-km to an average of CFA Francs 15 for the 2CO km between Nouakchott and Rosso. This reduction in costs, together with a shortening in distance of 10 km, would reduce the cost of transporting a ton of goods over the new road by CFA Francs 2,000. There is no previous experience of highway improvement in Mauritania with which to compare this figure. It accords well, however, with experience in neighboring Senegal where the road system is better, and particularly with that of the largest Mauritanian trucking company which was formerly based in Senegal. This reduction in transport costs may be an understatement, in that no allowance has been made for an improvement in the average load factor. It is quite possible, for example, that with the rapid growth of the capital some local foodstuffs from the Senegal River area may be carried north to Nouakchott on trucks which otherwise would return empty and thus contribute to a further lowering of average ton-km transport costs.

77. The probable costs of maintaining the existing road and the proposed new road have been intensively examined by the Association staff. The conclusion reached is that from 1968 onwards, the year in which the Project would be completed, the cost of maintaining the existing road would become progressively higher than that of maintaining the new road. - 17 -

78. The reduction in costs of operating trucks, buses and automobiles and the savings in road maintenance costs are sufficient to produce a rate of return, discounted over the life of the road, of just under 6 percent for the minimum traffic expected, and slightly over 9 percent for the maximum traffic. In addition the construction of the road may provide some stimulus to agricultural production which would result in an increased return on the investment.

79. lWhile these rates are relatively modest, they exclude a number of important indirect benefits to the economy of Mauritania, apart from those of helping to unify the country and facilitating its administration0 Without the Project road, the new capital and its wharf would remain relatively isolated from trade and commerce with southeast Mauritania which is the most developed agricultural and densely settled part of the country; commercial houses would have less incentive to bring goods directly into Mauritania via the wharf; employment opportunities would be limited for the growing school population; the commercial skills fundamental in the development process would take longer to mature; and, the Governmentfs revenues would be less.

80. To summarize, while the Project would give a modest measurable rate of return it would be a major step towards the creation of the basic infrastructure of Mauritania and would help to provide the country with an outlet for its import and export trade. In view of these factors, the Project is justified and recommended to the Association for financial assistance.

VI. CONCLUSIONS AND RECOIMENDATIONS

81. The Project is technically sound and the cost estimates are realistic. Reasonable allowances for contingencies have been made.

82. The Project is justified by a modest but satisfactory direct rate of return and by important non-measurable benefits which would follow from the creation of a basic infrastructural investment.

83. The Public Works Department, which would be the responsible executing agency, has only a small professional staff which is competent, but is not sufficient to carry out design and supervision of the Project. All of the engineering, preparation of documents and the supervision of construction would be performed with the assistance of foreign consulting engineers who would also review general maintenance conditions in the country and prepare recommendations as to sound maintenance of the entire network. Concurrently; - 18 -

the Government would gradually improve maintenance of the network and increase annual maintenance funds,

840 A joint operation with the European Development Fund (FED) has been arranged which would provide financing on the following basis:

Engineering studies and supervision of construction. 100o IDA

Construction US$0.1 million Government

Balance: 35% FED 65% IDA

On the above basis, the Government of Mauritania would provide financing in an amount equivalent to US$0O1 million, FED an equivalent to US$3.22 million, and IDA an equivalent to US$60 7 million.

85. The technical, economic, and financial features of the Project are satisfactory and the Project provides a suitable basis for an IDA participa- tion of US$6.7 million equivalent.

December 11, 1964 TABLE 1

145AURITANIA

HIGTH,AY PROJECT

Classification of National Roads

Width Type of Surface Sea- Improved Earth Roadway Surfacing Asphalt shells Soil Graded Ungraded Total meters meters km km km km kaa km

From 3 - 6 - -1,610 1,080 2,690

From 6-7 - - - 920 - 920

From 7 - 8 5 - 6 _ 80 124 - 204

From 8 - 9 6 - 7 6 50 730 - _ 786

Total 6 a) 130 854 2,530 1,080 4,600 b)

a) Experimental section between Nouakchott and Rosso. b) In addition to this total length of national roads, there are about 2,500 km of local tracks.

Source: Government of IvIauritania Ministry of Construction, Public Works and Transport. TABLE 2

MhURITANIA

HIGHWAY PROJECT

Highway ExDenditures 1958-1963 (excluding urban roads)

(CFA Francs millions)

New Works including Engineering Studies RIM / FIDES FAC FED Road 6 Year Maintenance Fund Budget Total

1958 143.5 4o0o _ 804 _ - 191.9

1959 127.3 h0.0 - - _ - 167.3

6 1960 141. - 20.0 35.4 - - 197.0

1961 96.7 5/ - 8.5 - 4.3 - 109.5

1962 76.8 5/ - - - - 13.5 90.3

1963 107.8 / _ 30.0 - 137.8

Source: Government of Mauritania.

Notes: 1/ Republique Islamique de Nauritanie. 2/ Fonds d1lnvestissements pour le Developpement Economique et Social. 3/ Fonds drAide et de Cooperation. T~/ Fonds Europeen de Developpement. FAC participates in maintenance finance through subvention to RIM Budget (General Projects). 6/ During the period of the Federation of French West Africa. TABIE 3

PL URITANIA

HIGHWAY PROJECT

Design Standards

Design Feature Vehicles per day 0-10 10-50 50-100 100+ Design Speed (km/hr) 80.0 80.0 100l0 100.0

Type of Surface Earth Sea shells, Sea shells, Bituminous Laterite Laterite treatment

Width of Surfacing (meters) - 6.o 6.o 7.0 Roadway, Shoulder to 8.0 8.o 9.0 lOo0 Shoulder width (meters)

Right_of-way, width (meters) - 40.0 40.0 400.

Maximum Grade (%) 7.0 7.0 6.o 5.0

Minimum Radius (meters) 300.0 300.0 500.0 500.0

Sight Distance for 80.0 80.0 140.0 140.0 Stopping (meters)

Maximum Axle Loads (tons) - 11.5 11.5 11.5 TABLE 4

MAURITANIA

HICHWAY PROJECT

Estimated Average Truck Operating Costs on Existing Roads

(CFA Francs per tonmn)

5-ton truck 10-ton truck Insurance 2 5 Labor 12 12 Fuel, lubricants 10 16 Tires 9 14 Repairs, etc. 6 13

Sub-total 39 60

Overheads 2 2 Depreciation 24 32 Interest (8%) 2 2.5 Total 67 96e5 Per capacity ton Im 13 0 4 9.65 Load Factor = 0.5

Cost per ton-km 26.8 19.3

Average trucking cost per ton-km based on 70 percent of 5-ton and 30 percent of 10-ton trucks: CFA 24.0

Source: Association Staff estimates based on information provided by iinistry of Public Wnorks. MAURITANIA: ORGANIZATION CHART -MINISTRY OF CONSTRUCTION, PUBLIC WORKS AND TRANSPORT

MINiSTER OF CONSTRUCTION,l | PUBLIC WORKS AND TRANSPORT l

DIRECTOR OF DIRECTOR OF l TECHNICAL SERVICES ADMINISTRATIVE SERVICES TRANSPORT AND TOURIS

CENTRAL ADMINISTRATIVE SERVICE

PUBLIC WORKS DEPARTMENT SECRETARIAT ROAD TRANSPORT

_ HYDRAULICS DEPARTMENT l_PERSONNEL _AIR TRANSPORT

X TOPOGRAPHY DEPARTMENT lAACCOUNTS lA SEA AND RIVER TRANSPORT l

A ~~~SUPPLIES|

0 SOURCE: Government of Mouritonia, Ministry of Construction, Public Works and Tronsport IBRD- 2342 -I MAURITANIA: ORGANIZATION CHART - DIRECTORATE OF TECHNICAL SERVICES

| DIRECTOR OF TECHNICAL SERVICES |

HYDRAULICS DEPARTMENT PUBLIC WORKS TOPOGRAPHY DEPARTMENT

ROAD AND PORTS AND RIVER DESIGN AIRPO RTS BUIL0DINGS PORTS

LAND ACQUISITION GROUND WATER SECT ION

WATERT SUPPLY AND l l TOPOGRAPHICAL SECTION lELECTRICITYll

0 ~~HYDROLOGY|

DISTRICT DISTRICT DISTRICT DISTRICT DISTRICT DISTRICT DISTRICT PORT -ETIENNE ATAR NOUAKCHOTT ROSSO KAEDI AiOUN

SOURCE: Government of Mauritonio, Ministry of Construction, Public Works ond Tronsport

IBRD-2343 REPUBLIC OF MAURITANIA ROAD PROJECT

PROJECT ROAD + " ( NATIONAL ROADS LOCAL ROADS v%~~~~~~~~~~~4t | _ Graded 'K

Ungraded 4++ 4- ++ -. 4+ 4- 'K 4J

''''''' Track _ K+

...... Future roads -I- -' + BirMogrein_ , Y Senegal roads t+ '

Senegal railroads + t

'-,-.-,- Miferna railroad 4-

+ + .ru4.G IX1

e J~ ~~~~~t. l Goouraud 4'u

t / $~~~p P ,j

= ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~+ PORT ETIENNE + Ouoedone .+-- -o 5 ATAR Chinguetfi 0 s)o zoo 30 KrM

TIDJIKJA~~~~0~~~ Tichi- NOUAKCHOTT / 0 t Moudj.ir,i ..

/ / '. ' Tamchsket 0Ouotot +

/D ~ ~ LAIOUN *..- ATROUSSEL 4

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SEPTEMBER 1964 IBRD-1363Rl