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R EP RN DESO RESTRICTED REPORTS DES§Cl Report No. TO-570a WITHIN ONE WEEK'2 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 The report may not be published nor may it be quoted as representing their views.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 HIGHWAY PROJECT TRINIDAD AND TOBAGO Public Disclosure Authorized May 18, 1967 Public Disclosure Authorized Projects Department CURRENCY EQUIVALENTS Unit of Currency in use: Trinidad and Tobago Dollar (TT$) TT$ 1.71429 = US$ 1.00 TT$ 1.00 = US$ 0.58 TT$ 1,000,000 = Us$ 583,333 FISCAL YEAR January 1 to December 31 WEIGHTS AND MEASURES: BRITISH Conversion British/US: Metric 1 mile = 1.6 kilometers 1 foot = 30.5 centimeters 1 acre = 0.41 hectares 1 imperial gallon = 1.20 U.S. gallon = 4.54 liten 1 ton = 1.12 U.S. short ton = 1.02 metric ton TRINIDAD AND TOBAGO APPRAISAL OF A HIGHlJAY PROJR.CT TABLE OF CONTENTS Page 1. INTRODUCTION 2 * BACKGROUNMD A. General B. Transportation C. National Transportation Study 3. HIGHWAAY SECTOR 3 A. Highway Administration B. Highway Network and Growth of Vehicle Fleet C. Traffic Volumes and Traffic Counts D. Highway Financing and User Charges E. Highway Transport Industry 4. THE PROJECT 7 A. Description B. The Project Highway (Southern Highwray) C. Consulting Services (i) For the Project Highway (ii) For Feasibility Studies and Detailed Engineering D. Cost Estimates and Foreign Component E. Project Execution and Financing 5. ECON,OMIC JUSTIFICATION 12 A. General B. Vehicle Operating Costs C. Time Savings D. Reduction in Road Accidents 6. CONTCLUSIONS ANTD RECOSENDATIONS 14 TABIES: 1. Road Mileage 2. Registered NTumber of Motor Vehicles 3. Estimated User Revenues and Highway Expenditures 4. Design Standards 5. Scope of Highwiay Project This report was written by Messrs. Kaden and Parthasarathi on the basis of their findings during missions to Trinidad and Tobago in May 1965, April 1966 and April 1967. TABLE OF CONTENTS (page 2) CHART Organization Chart - Ministry of Works ANTEX MAPS 1. Highway Network in Trinidad - IBRD 1888 Rl 2. Highway Project - IERD 2055 TRINIDAD AND TOBAGO APPRAISAL OF A HIGIVAY PROJECT SUMMARY i. The Government of Trinidad and Tobago has requested the Bank's assistance in financing a highway project for improving various sections of hig' ways comprising the route between Port-of-Spain and San Fernando and consistir of: (a) the construction of a 4-lane expressway about 17 miles long from Chaguanas to San Fernando, includ- ing all consulting services related thereto, and (b) consulting services for (i) feasibility studies for several sections of the route between Port-of-Spain and the Southern Highway at Chaguanas and for the extension of the Southern Highway for about 3 miles south of the northern access to San Fernando; and (ii) the detailed engineering of the highway sections to be studied under (i) above, subject to confirmation of the technical and economic justification from the feasibility studies. ii. The total cost of the project is about US$ 19.7 million equivalent, and a loan of US$ 8.6 million is proposed to cover the presently estimated foreign exchange costs of consulting services from January 1, 1966, and of construction costs from January 1, 1967. This would be the first Bank Loan to Trinidad and Tobago for highways. The executing agency would be the Ministry of Works through its Highways Division. iii. The number of motor vehicles in Trinidad and Tobago has almost tripled between 1955 and 1966, representing a growth rate of about 10 percent per annum. In view of the small size of the country and the rolling terrain, highways will increasingly provide the major means of transporting both passen- gers and goods. The Southern Main Road from Chaguanas to San Fernando consti- tutes an important part of the north-south route connecting the two most popu- lated and economically important areas in the country - Port-of-Spain and San Fernando and environs - but is inadequate to handle even present traffic. In view of the difficulties involved in widening and improving the present road which goes through several urban areas and has many narrow curves and sharp turns, the Government has decided to construct a new highway on a new alignment with improved design features. iv. The road works included in the project are technically sound and economically justified in terms of reductions in vehicle operating costs which yield a return of about 11 percent. In addition, the project will result in savings in travel time, reduce road accidents and help in the agricultural and industrial development of the areas bordering the highway. v. Construction contracts for the proposed road works will be awarded on the basis of international competitive bidding. Construction is expected to be completed in about 4 years., by mid-1971. vi. The project is suitable for a Bank loan of US$ 8.6 million equivalent; an appropriate term would be 25 years including a 4h-year period of grace. TRINIDAD AND TOBAGO APPRAISAL OF A HIGMEIJY PROJECT 1. INTRODUCTION 1.1 The Government of Trinidad and Tobago has requested the Bank's assistance in financing a part of its highway program. The proposed project is the next step in the Government's plans to improve the route between Port-of-Spain, the capital, and San Fernando, the second largest city. It includes the construction of 17 miles of a 4-lane expressway and the services of consulting engineers in connection therewith and for further engineering and economic studies for improving related parts of the highway system. The total cost of the project is about US$ 19.7 million equivalent, and a loan of US$ 8.6 million equivalent is proposed to cover the presently estimated foreign exchange cost of consulting services from January 1, 1966, and of construction costs from January 1, 1967. 1.2 This will be the first Bank loan to Trinidad and Tobago for highways. The agency responsible for the execution of the project would be the Ministry of WTorks through its Highways Division. 1.3 The project has been prepared by the Government, assisted by the consulting firm, Brown Engineers of Trinidad Ltd., a subsidiary of the US firm Brown Engineers, New York. 1.4 This appraisal report is based on the findings of Bank missions which visited Trinidad in May 1965, April 1966 and April 1967 and on studies prepared by the Government and its consultants. This report was prepared by M4essrs. Kaden and Parthasarathi, members of the Bank missions. 2. BACKGROUND A. General 2.1 Trinidad and Tobago is located just off the coast of Venezuela. The island of Trinidad, with an area of 1,86h square miles (about the size of Luxembourg), is separated from the mainland by less than 10 miles. Tobago lies 20 miles to the northeast of Trinidad and is 116 square miles in area. The country became an independent member of the British Commonwealth in August 1962. 2.2 The population of Trinidad and Tobago is just under 1 million, of which 35,000 live in Tobago. Some 250,000 people live in the capital city of Port-of-Spain, and another 50,000 in San Fernando, the next largest city. Port-of-Spain is the seat of Government and the center for administrative, commercial, banking and import-export activities. 2.3 In the last ten years, the population grew 2.9 percent a year and it is expected to grow at about the same rate in the next few years. Gross domestic product at market prices (in 1960 values) is estimated to have -2- increased from TT$ 655 million (US$ 380 million) in 1956 to TT$ 1,270 million (US$ 740 million) in 1966, or a rise of about 6.5 percent a year. During this period per capita income rose 3.5 percent a year, to about TT$ 900 (US$ 525) in 1966. 2.4 The relatively high per capita income is based mainly on petroleum, which constitutes the most important sector of the economy of Trinidad and Tobago (accounting for 28 percent of the GDP and employing 5 percent of the labor force) followed by agriculture (10 percent of GDP and 21 percent of labor force), sugarcane being by far the most important crop. In 1964, the Governmei. launched a Second Five-Year Plan (1964-68), involving a total outlay of about TT$ 300 million (US$ 175 million), which would broaden the economic base and strengthen sectors other than petroleum. B. Transportation 2.5 Road transport has been the principal mode of transportation in Trinidad for many years. This has become even more so since the termination in September 1965 of railway services between Port-of-Spain and the south of the island of Trinidad. In terms of traffic volume, coastal shipping is insignificant, except for inter-island traffic. 2.6 A steady decline in freight traffic and revenues, and increasing cx- penditures and operating losses, resulted in the abandonment in 1965 of the railway between the capital and San Fernando, uhich served the oilfields and th sugar belt in the center of the island. It was based on the advice of a Swiss transport consultant who recommended the gradual replacement of the railway by road transport. Railway service between Port-of-Spain and Arima in the east, a distance of 14 miles, has been continued for the movement of about 8,000 passengers daily or some 2.5 million persons a year in each direction.