Document of The World Bank FOR OMCIAL USE ONLY Public Disclosure Authorized Report No. 5647 PROJECT COMPLETIONREPORT Public Disclosure Authorized TUNISIA SECOND HIGHWAY PROJECT (LOAN 1188-TUN) Public Disclosure Authorized May 9, 1985 Public Disclosure Authorized Europe, Middle East and North Africa Regional Office Tib docummthas a resbiced distIbudtn _d my be used by rcipkints only the performane of |dherofficid duiltb cotets may not otherwise be i dcosed witht World Bank anlhorltion. I FOR OMCIL USE ONLY PROJECTCOMPLETION REPORT TUNISIA SECOND HIGHWAY PROJECT - LOAN 1188-TUN Table of Contents Page No. Preface...................................................... (i) Basic Data Sheets............................................ (ii) Highlights ...................................................(iv) I. Introduction. 1 II. ProjectPreparation and Appraisal. 2 III. Project Implementation. 4 IV. Project Cost and Disbursements.10 V. Institutionaland OperationalDevelopment .12 VI. EconomicReevaluation .13 VII. Role of the Bank.15 VIII. Conclusions.15 TABLES 1. Actual and Expected Project Implementation.17 2. .^:tualand Appraisal Estimatesof Project Cost.18 3. Actual and Expected Traffic.19 4. EstimatedVehicle OperatingCosts .20 ANNEXES 1. ImplementationChart. 21 2. DisbursementSchedule .22 3. Borrower Comments....................................... 23 MAP IBRD 11734 (PPA) Tunisia Second Highway Project IThisdocument has a restricteddistribution andmay beused by recipientsonly in the performance | of their officialduties. Its contents may not otherwisebe disclosedwithout WorldBank authorization. S (i) PROJECTCOMPLETION REPORT TUNISIA SECOND HrGHWAY PROJECT - LOAN 1188-TUN PREFACE This Project CompletionReport describes the preparationand implementationof the Second Highway Project in Tunisia, for which Loan 1188-TUNof US$28.0 million was made in December 1975. The loan was closed on September30, 1983. The present report was preparedby the Europe, Middle East and North Africa Regional Office of the Bank on the basis of a review of the Bank files and the Borrowers'progress and completionreports. In accordancewith the revised proceduresfor project performance audit reporting,this Project CompletionReport was read by the Operations EvaluationDepartment, but the project was not audited by OED staff. The draft Project CompletionReport was sent to the Borrower for comments; their comments are reproducedas Annex 3 to the report. (ii) ERaj=raETlDt REOR S1=MD HIMMRWM - LON 1& BASIC DATA SHEET KEY1RQ3CT DaTA Appraial Actual or Iem Xcpectation Oxrent Eatimite Tobtal Project Cost (US million) 52.3 46.8 Weri tX) /11/ loan/Credit hwmDt (US$ million) 28.0 28.0 Disbursed - 22.1 Carwelled 5.95 Pepaid to my 1984 - 2.58 outstandirg 25.42 Date Plysical Ox=nmts Obpleted 6/30/79 6/30/84 Proportion Coipleted by Above Date (%) 100 30 Propotion of ie Ix1erun or Ouerrun (Z) - 100 EcmammcRate of Return (%) 33 33 0TIM EJECT DAMTA Actual or Item r n Plan Rewisins Est. Actual First Mntion in Files or Timetable - - 00/00/74/2 NegDtiations 10/28/75 / / 10/28/75 BDardApproval 12/18/75 / / 12/18/75 loan/Credit Agreent Date 01/26/76 / / 01/26/76 Effectiveness Date 04/26/76 05/26/76 06/16/76 Clasing Date 12/31/79 12/31/82 09/30/83 /3 Borrowier Governmet of ¶flisia thecuting Agency: Directorate of Public lWrks and Ministry of Tuansportatim and mnicaticns Fiscal Year of Borrower Jnuary 1 - December31 Fbllow-on Project Name Rral Radls Project toan/Credit Nxmber 1601-lUN hnmt (US$ million) 32.0 ldan/Credit Agement Date July 23, 1978 aMJIAXfl EMT,1MADANM ACIUAL DISBURSNEIS (US$'000) FY76 FY77 FY78 FY79 FY80 FY81 FY82 FY83 FY84 (a) Estinated 2,000 9,400 19,000 25,300 28,000 28,000 28,000 28,000 (b) Actual - - - 1,600 4,860 7,770 11,120 15,630 22,127 % of (b) to (a) 0 0 0 6 17 28 40 56 79 /1 Scope of project was changed. Due to dollar appreciation, there were both umderrmn in terms of dollar and overrm in termr of Inisian Dinar . /2 Project was based on pre-nvestment stidies finaoed uner First Hi*ay Project (ioan 746-WT) and implemented in 1973/75. /3 last disbursement was processed in lhy 1984. Kby 1984, Doc. 2552R (iii) PRw amlElMN RE sij H?IA BM_ - IWN 188lU ~fasion Data Date lo. of ND. Of Staff of ken Semth, YBw weeks Persoa Wees A Pt fReappraisal Hmzd1 06/74 and 09/74 1.5 2 3.0 10/18/74 Apaisal o 03/75 3.5 2 7.0 04/30/75 Ibtal 5.0 10.0 Siperi'ision I Hbiad 08/76 2.0 2 4.0 09/09/76 supeA,isi2 II " 05/77 o,.5 1 O.5 06/15/77 A&zrsisni III f 11/77 0.4 2 0.8 12/09/77 &apervision IV t 03/78 0.6 2 1.2 09/22/78 a*pervision v " 11/78 0.6 2 1.2 L2/15/78 Siperviion VI it 04/79 1.0 3 3.0 04/30/79 Saervision Vl to 07/79 0.5 2 1.0 07/17/79 Spevision VIII " 10/79 0.2 2 0.4 11/02/79 5*pervision IX g0o/80 1.4 1 1.4 02/27/80 S sperviionX 04/80 1.0 1 1.0 05/05/80 Sipeuvision xi o 07/80 0.4 2 0.8 08/01/80 Sipervisimoi It 09/80 0.3 2 0.6 10/20/80 Szpervision XIII " 02/81 0.2 2 0.4 03/10/81 &aperision XIV " 05/81 0.6 2 1.2 05/28/81 Supervision x " 11181 0.4 2 0.8 12/07/81 Sxperviision XVI G. de 1atcna 05/82 0.6 2 1.2 05/21/82 &pwvision Vn G. de Mtons 09/82 0.6 3 1.8 10/06/82 Sfpervision XVIII G. de 14tons 02/83 0.2 1 0.2 03/17/83 S.pervision DEX G. de Mbtons 05/83 0.2 3 0.6 06/22/83 Total 11.7 22.1 axNM E^N RAM Mbmeof hrreny Imisian Dinar (DT) praisal year awerage EDwhgerate: UJSUl- DT 0.385 ntervn years (cnstructton period) U$1 DET0.555 Qmuletidn year average USl =-DT 0.70 11 All Supervisimi missions were imde in cijmictia wit preparation, appraisal, and stpervisian for follow-up projects. As a result, the mnber of nmrweeksallocated for supervision of lomn 1188-8un is estiamted. Nky 1984, Ibc. 2552R (iv) PROJECT COMPLETIONREPORT TUNISIA SECOND HIGHWAY PROJECT - LOAN 1188-TUN HIGHLIGHTS The objectivesof the Second Highway Project were to reduce transportationcosts on a number of roads by improvementof primary and secondaryroads and constructionof bypasses of towns totalling225 km; to assist in transportationplanning by updating the 1968 transportsurvey; and to foster rural developmentthrough preparationof a rural roads improvement program (para. 1.04). Overall, the project achieved well its objectives. 264 km of highways were rehabilitated(instead of 225 km foreseen)at an average cost which correspondedwell with what estimatedat appraisal. Traffic increase on the project roads was substantiallyhigher than foreseen. The project's reevaluatedIRR is above 33%. Substantialprogress in institutionaland operationaldevelopment was achieved (paras.6.02-6.03 and 5.02-5.03). The project was appraisedin May 1975 on the basis of feasibility studiesand detailed engineeringprepared under the First Highway Project. The list of possible project componentsinitially identified included constructionof the Tunis-Turkiexpressway, the Bizerte bridge, highway modernization,a road maintenanceprogram and consultancyservices with a total estimatedcost of about US$137 million. The foreign cost component was estimatedat US$75 million. The Bank lendingprogram allocationfor the projectwould cover only about a third of this amount. Two issues had to be clarified:availability of other external financingfor part of the foreign cost and availabilityof counterpartfunds (para. 2.02). The Government resolved these issues by securing Kuwait Fund (KF) financingof the expresswayand Bizette bridge as a separat-eproject and providingadequate counterpartfunds in the investmentbudget (para. 2.03). However, the budgeted funds were not released in sufficient amounts for payments to both the Bank and KF financed projects. The Government gave priority to constructionof the expresswayand Bizerte bridge. After the initialprocurement of about 30% of the Second Highway Project civil works, the start of the remainingworks was delayed by three years. The project was completedin early 1984 while at appraisal the completionwas scheduled for 1979. The substantialdelays have also contributedto the large undisbursed loan balance, US$5.9 million. The causes of this balance are (i) US dollar appreciationand (ii) miscellaneousreasons among which non-paymentto contractors. Both causes are strongly tied to the delays experienced (paras.5.04, 3.16 and 4.09). - v - The studies included in the projectwere completed,albeit with some delays, and contributedto a better understandingof the need for transportationplanning and coordination. The rural roads program was prepared according to schedule, leading to an early appraisal of the Third Highway Project (paras.3.13, 3.14 and 3.15). Points of particularinterest highlightedin the project completion report are: (i) problems in project implementationdue to shortage of counterpart funds (para. 5.04); (ii) the importanceof timely acquisitionof right-of-wayand updated designs, coherentwith actual urban developmentand plans for town bypasses (para. 3.22); and (iii) the advantageof preparing follow-upprojects under ongoing projects (para. 2.01). - 1 - PROJECT COMPLETIONREPORT TUNISIA: SECONDHIGHWAY PROJECT (LOAN1188-TUN) I. INTRODUCTION 1.01 The highway network in Tunisia consists of 17,500 km of classified roads, of which half have bituminous surfacing, and about 30,000 km of unclassifiedtracks. Road density is high in the coastal area of the northeastwhere more than half the population is concentrated. The railway system includes 1,900 km of standard and meter gauge lines and carries both freight and passengers. Roads carry about 90% of passenger traffic and 85% of freight trafficexcluding minerals. Road traffic growth during the 1970s has been about 15% per year, against rail traffic growth of 6% for passengers and 1% for freight.