( 0 THE WORLD BANK POLICY PLANNING AND RESEARCH STAFF INFRASTRUCTURE AND URBAN DEVELOPMENT DEPARTMENT FILE COPY ROPc,rt No..'11087 T'ype (NIFI) Title: FY91 TRANSPORT SECTOR REVIEW INU-OR 8 Author: INFRA & URBAN DEPT' Ext.: 0 Room: Dept.: INU GENERAL OPERATIONAL REVIEW FY91 TRANSFORT SEC*R REVIEW REFOtRM IN MANAGEMENT AND MAINTEANCE OF HIGHWAYS Transport Division November 1991 Gerai Operational Review This la docunmnt publishad informly by the Wrd lank. The vews and nepretations herein are those of the authos and should not be attribued to the World Bank, to its affilad organzatbns., or to any WdMhddual an on their behalf. Abbreviations Used in Text AFTIN Infrastructure Division, Africa Technical Department ARIS Annual Report on Implementation and Supervision (a budget reporting system) ASTIN Infrastructure Division, Asia Technical Department BOT Build, Operate and Transfer EDI Economic Development Institute of the World Bank EMENA Europe, Middle East and North Africa Region of the World Bank FY Fiscal Year GOR General Operational Review HDM Highway Design and Maintenance Standards Model IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IDA International Development Association ]MO International Maritime Organization INT Intermediate Technology INU Infrastructure and Urban Development Department of PRE INUTD Transport Division of INU LAC Latin Arierica and Caribbean Region of the World Bank LCB Local Competitive Bidding NGO Non-Government Organization NMV Non-motorized vehicles PRE Policy, Research and External Affairs complex of the World Bank PRSVP Vice "tesident, Sector Policy and Research SAL Adjustment Loans SAR Staff Appraisal Report SECAL Sector Adjustment Loans SSATP Sub-Saharan Africa Transport Program SWK Staff weeks TD Regional Technical Departments UNEP United Nations Environment Program WID Women in Development FY91 TRANSPORT SECpTOR REVEW TABLE OF CONTENTS EXECUTIVE SUMMARY i 1. INTRODUCTION 1 11. RETROSPECTIVE OF FY91 I A. Lending Operations 1 Overall Lending Volume 1 Regional and Modal Distribution 3 Quality of Project Formulation 3 B. Sector Work and Other Support Activities 6 Country-Specific Se:tor Work 6 Regional Studies 9 INUTD Policy and Research Work 11 Workshops 13 Training of Bank Staff 13 C. Supervision 14 Ill. ISSUES OF CONCERN TO SECTOR STAFF 16 A. Environmental Issues 16 B. Scope for Private Sector Involvement in Bank Operations 20 IV. ISSUES SELECTED FOR SYSTEMATIC ANALYSIS 23 A. Poverty and Women in Development 24 B. Technology 26 V. REFORM IN MANAGEMENT AND MAINTENANCE OF HIGHWAYS 29 Performance Indicators and Financing 30 Availability of Highway Information 30 Road Management Systems and Evaluation Methods 33 Technology Issues 35 Institutional Performance 35 Bank Staffing Implications 35 STATISTICAL ANNEX 37 Ths report was wrtten by lan G. Heggie, assisted by Surhid Gautam who assembled the sistical data. Alice Galenson guided the initial colle¢tion and analysis of this data. The special topic, Reform in Managen..nt and Maintenance of Highways, was written by W.D.O. Paterson. An eadier draft of the report was reviewed by R. Elarrett (AFTIN), P. Blackshaw (EMTIN), M.S. Parthasarathi (ASTIN) and R. Sourfield (INUTD). Selected parts of the tex were also reviewed by C. Cook (environment), J. Lethbridge (technology), M. Martnez (supervision), C. Moser (poverty and L Thompson (private sector). Executive Summary Lending Operations Seventeen dedicated transport projects were approved during FY91. Total lending commitments were $1,263 million, down from $2,785 million in FY90, and only accounted for 5.6 per cent of overall Bank lending. Three fictors accounted for the unusually low total. First, lending to China and India was lower than usual. Lending to China fell after the events of June 1989 and a major loan to India slipped into FY92. Second, projects approved during FY91 included a large number of multi- sector projects with transport components. Finally, there were two adjustment loans with large transport components. The forward lending program envisages commitments of $2,666 million, $4,153 million and $3,822 million in FY92, FY93 and FY94 respectively. The increase over FY91 reflects the effect of normal lending to India and China and, in FY93, substantial loans to Mexico. If these commitments are realized, dedicated transport lending will again account for 12 to 15 percent of total Bank lending. The regional distribution of FY91 lending was similar to FY90, although lending to EMENA was higher than usual. Projects continue to reflect the importance of highways, the absorption of urban transport into general urban projects and the continuing importance of transport sector and multi-modal projects. The urban transport components were formulated In less detail than dedicated transport projects and, since the urban projects cover several sectors and often cover several municipalities, it is difficult to see how they can be administered within current supervision coefficients. These projects should be closely monitored to ensure the savings associated with processing them as multi-sector projects are not absorbed sorting out problems during implementation. This year's projects also included one hybrid sector adjustment operation, with a quick-disbursing adjustment component of $20 million and an investment component of $583 million. There appearsto be scope for using hybrid operations elsewhere in the sector. Sector Work and Other Support Activties There was a small increase in the time recorded against sector work during FY91. The regional distribution of time varied widely with Africa and Asia spending the most time (339.4 and 274.0 swks respectively) and EMENA and LAC the least time (123.5 and 67.2 swks respectively). These figures are only indicative, since sector work is often recorded against other codes in the Bank's time recording system. More sector work is now being done by consultants (they accounted for 51 percent of the time, up from 37 percent in FY87). Overall, consultants have been used to expand the range of skills available to sector staff. However, in some cases, ii sector studies have become too dependent on consultants; in one case the e0l tire sector mission consisted of consultants (including the mission leader). Sector work provides an Important opportunity to Initiate policy dialogue with borrowers and explain the Bank's policies and priorities. The Bank cannot expect consultants to do this. Seventeen dedicated transport sector reports were completed during FY91 and at least another six reports contained chapters dealing with transport. They included four wide-ranging transport sector reviews, three which focussed on tt'e link between trade and transport, and three which focussed on deregulation of the trucking industry and the scope for privatization of state trucking companies. The amount of time spent on individual studies varied from nearly 90 swks to a mere 14 swks. Secto7 work was mostly well done and reflected the important contribution made by INUTDs policy and research work. There is nevertheless a need to strengthen sector work through better dissemination of the available guidance on environment, railway restructuring and labor redundancy. Private sector development, poverty, women 'n development and technology were not always well handled; parts Ill and IV of this report discuss these topics in more detail. There has been a rapid growth in regional studies carried out by the TDs. During FY91, the TDs spent 443 swks on regional studies (55 percent provided by consultants) and completed eleven reports. INUTD in contrast only spent 270 swks on policy and research work (33 percent provided by consultants). Most of the studies prepared by the TDs had a regional focus and did not conflict with the policy and research work carried out by INUTD. Most regional studies were done in Africa and Asia and covered preparation of regional strategies and reports on human resource and institutional development, contract maintenance, and improving railway performance. The TDs are beginning to produce work of high quality. One report is currently being consioered for publicatior as a PRE Working Paper, another is about to be published as a World Bank Technical Paper and the work on contract maintenance is of high quality. There appears to be scope for increasing co-operation between INUTD and the TDs on topics like WID issues, urban freight transport, private financing of urban infrastructure, and human resource and institutional development in the road sector. During FY91 INUTD completed nine reports summarizing the results of its policy and research work. Three reports dealt with environmental rnatters (automotive air pollution and port related-environmental issues), two with restrictive labor practices and their impact on labor productivity, two with port management, one with road management information systems and one with the design of major policy reforms. The division also produced eight Infrastructure Notes providing guidance to staff on topics like use of outside contractors for port maintenance, application of the Highway Design and Maintenance model and designing low-cost transport components to reach the rural poor. iiI The regions are increasingly using workshops, attended by officials from developing countries, to promote policy dialogue, disseminate the policy messages coming out of regional studies and provide inforrmation on best practice in other countries. This activity is likely to continue. All workshops have to rely on outside funding and, although this offers some advantages, it can also dilute the policy message and influence the selection of participants. To increase the effectiveness of workshops, the Bank may wish to consider establisi-ing a regional technical assistance fund, available on a grant basis, to partially finance regional workshops. Staff training helps to keep Bank staff abreast of new developments and provides them with the skills needed to handle the Bank's areas of special e-.. .hasis. Training Is provided in the form of concentrated training programs, or as short in- house seminars. Six major training programs were organized during the year and were financed by the French government, the Bank's Training Division, the LAC TD, INUTD and the Port of Barcelona. Thirty six short seminars were also organized during the year by INUTD in conjunction with the regions. These seminars were organized on a zero budget and were not fully effective. The organizers had to rely on people already visiting Washington and they were often here to "sell" their own ideas. Seminar training cannot be effective without a budget to meet the costs of outside speakers. Even a minimal budget of $200 per seminar would greatly increase the effectiveness of training seminars. Supervision The average time spent on supervision during FY91 was 11.4 swks per project. It is based on standard coefficients which have not been raised for some years and, given the increasing complexity of some operations, these coefficients may now be too low. The average rating of transport projects compares well with those of all Bank projects under supervision. The average rating consists of a weighted average of eleven separate indicators. When these individual indicators are examined, transport projects do less well relative to the other eleven sectors covered in the ARIS reports. Transport ranks eighth out of eleven In terms of overall status, seventh in terms of technical assistance, ninth in terms of project management and procurement and last in terms of training. Does this mean transport projects are poorly formulated, or is something fundamentally wrong with the rating system? Some regions have already taken cross-sectoral initiatives to strengthen project supervision. It is suggested that regional staff should attempt to find out what has gone wrong with the rating system, while the transport divisions should make strenuous efforts during supervision to improve the effectiveness of project management, procurement, training and technical assistance. iv Environmental Issues This year's projects made strenuous efforts to deal with environmental issues and some projects were outstanding. On the other hand, while the overall treatment of environmental issues was satisfactory, there were some weaknesses. Too little attention was paid to road safety, to operation of workshops and application of health & safety at work regulations. Projects furthermore often offered a correct diagnosis, but failed to show how problems would be dealt with. Finally, there was too much emphasis on potential project impacts and too little on promoting sound environmental management practices. This was particularly noticeable with sector work. There Is a need for better environmental training for Bank staff to ensure that the standards of the weakest projects are brought up to those of the best. Private Sector Development Too few projects examined the scope for increasing private sector involvement in Bank operations. There were some notable exceptions involving privatization of railways. private handling of port cargo and operation of port equipment, introduction of contract maintenance and maintenance of heavy equipment. Sector work paid more attention to private sector development and covered deregulatlen, privatization and greater use of contract maintenance. Although iNUTD and the TDs have produced some useful materi,l- on private sector development, this needs to be expanded and turned into a synthesis of lessons learned to guide future lending operations. Poverty and WID Issues The average transport project is not a good vehicle for addressing poverty and WID issues. Some projects - rural roads and urban projects - nevertheless do impact the poor and offer opportunities for interventions which might help them. With few exceptions, however, the attention given to poverty and WID in these operations was disappointing. Several road projects included initiatives to encourage labor-based construction and maintenance methods on the grounds it would increase employment and provide employment for the rural poor. Some projects also attempted to involve women in rural road construction and maintenance. However, there was little analysis of whether labor-based methods were cheaper (and, if not, what could be done about it) and whether it made sense to involve women in road construction and maintenance. No consideration was given to how women get goods to market, or how they and their children get to and from health clinics, schools and other public facilities. Sector work dealt more effectively with poverty and WID issues, although most of the analysis was vague and inconclusive. When the Bank selects a new area of special emphasis, it behooves PRE to identify the issues involved and to advise regional staff on how to deal with them in lending operations and sector work. Guidance is urgently needed. v Technology Technology was defined to include Information technology and hardw,vare technology. This year's projects and sector work include numerous references to technology, mostly to technology transfer. They cover cargo handling technology, fuel efficiency, management information systems, changing trade logistics practices, construction technology, alternative construction materials and non-motorized vehicles (NMVs). Much of the advice offered on technology was nevertheless too general and a number of the recommendations made, particularly those included in sector reports, were not well thought out. The most convincing Initiatives relate to areas where Bank staff still have residual expertise: construction technology, cargo handling technologies in ports and management information systems. Tra;asport has undergone major changes in technology during the past 10 years and developing countries cannot afford to ignore these developments without raising domrstic costs unnecessarily and undermining opportunities for participation in international trade (which requires harmonization of equipment and information technology). To continue its role as a development institution, the Bank needs to recruit more staff with a tech;. al background. This needs tc. be supported by state-of-the-art reviews and technology assessment studies. Reform in Management and Maintenance of Highways Overall road conditions in 30-65 percent of Asia, EMENA and LAC have improved, have remained unchanged in about a third of Africa and have declined in the remaining 15-40 percent of countries. The size of the maintenance backlog remains high with at least 30 percent of countries having backlogs greater than 6 years. Maintenance expenditures increased In real terms in about half the countries reviewed, but fell in 10-50 percent of these countries. Valid data on road inventory, pavement condition and utilization of the road network are still inadequate. More attention needs to be given in highway projects to establishing appropriate road monitoring practices and supportive data bases. Computerization of road management systems is now both essential and affordable. Although numerous maintenance management systems were introduced during the 1970s and 1 980s, few continue to function effectively (10 percent of countries in Africa and 30-50 percent elsewhere) and their performance is variable. Pavement management systems have received increasing attention in Bank operations, but there are comparatively few functioning systems (1v percent of countries in EMENA and 25 percent elsewhere). Most countries have systems under development and 70 percent of Bank projects include development of such systems. Efforts to introduce economic evaluation techniques to plan road maintenance have been disappointing. The HDM IlIl model was used to prepare 60-80 percent of the projects reviewed, but is used for regular programming of road maintenance in only about 15 percent of the countries reviewed. More effort is needed to ensure economic evaluation techniques vi are applied to road maintenance on a regular basis. Bridge management has received less attention and also needs to be strengthened. Design methods and standards for roads and bridges were inadequate in about a third of the countries reviewed. Difficulties persist with surface treatment practices and asphalt technology. Provision of adequate country training remains a problem in at least a third of the countries reviewed and twinning to promote technical training should be promoted. Institutional strengthening has been a focus of numerous operations and has been effective in Asia anc EMENA, but only partially effective in Africa and LAC. The SSATP road maintenance Initiative has had a noticeable impact on road maintei-.ance practices and priorities (and hcs been effective in Involving senior government officials in the process) and might be usefully replicated elsewhere. There is growing emphasis on undertaking road maintenance by contract, but less emphasis on reducing government-owned equipment fleets. More attention needs to be given to these issues in future lending operations. Meeting the above challenges requires Bank staff to become better informed and more skilled in road management practices and management information systems. Resources in INUTD are too limited to serve these needs and each region needs to develop its own mechanism for providing staff training, guidelines and other forms of support. Road performance indicators need to be developed and should appear in all Bank documents. With the declining pool of technical specialists in the Bank, additional efforts need to be made to ensure that other arrangements are found to continue the important function of technology transfer. Operational staff need to have sufficient knowledge of technology issues to be able to diagnose problems and formulate appropriate responses with the assistance of consultants. 1. INTRODUCTION 1. The following Annual Report provides an overview of transport sec.or lending and support activities during the past fiscal year. It Identifies the broad trends in transport sector operations, highlights examples of good practice and draws attention to areas where remedial action might be required. It Includes a retrospective revievw of the year's lending, sector work and supervision, and analyses how two .ssues of concern to sector staff (environment, and private sector development) and two issues selected for systematic analysis by management (poverty and technology) were dealt with during the year. The sector-specific issues were chosen in consultation with regional staff, while the cross-cutting issues were selected following discussions between PRSVP, COD and TC Directors. II. RETROSPECTIVE OF FY91 2. This year's retrospective looks, as usual, at the Bank's lending operations, sector work and other support activities, and at project supervision. The review of the year's lending operations, examines the overall volume of Bank lending, its regional and modal distribution, and the quality of project formulation. The review of sector work examines all activities undertaken to support the Bank's lending operations. It covers country-specific sector work, regional studies undertaken by the regional TDs, INUTD policy and research work, workshops designed to enhance policy dialogue with borrowers, and training of Bank staff to strengthen the effectiveness of the Bank's operational vork. A. Lending Operations Overall Lending Volume 3. Twenty four dedicated transport projects were appraised during the year, of which seventeen were presented to the Board. The total lending commitment under these projects amounted to $1,263 million, down from $2,785 million in FY90 (see Table 1 in the Annex for details of these projects and Table 2 for details of the proposed lending program from FY92 to FY94). IBRD loans accounted for 62.6 percent of the total; the remainder were IDA credits. Since the Bank's overall lending volume was $22,685 million, dedicated transport lending only accounted for 5.6 percent of total Bank lending during the year, compared to 13.1 percent in FY90 (see Figure 1). Lending commitments for the year were fairly close to the commitments anticipated in the FY90 Annual Report ($1,263 million against expected commitments of $1,604 million). 2 Lending for Dedlcated Transport Projects C1n Relation to Total eark Lending) FYe2 - FY91 USS. bn X Tramsort of Totul Lending Vs _20_JX 20 __~~w FY °2 8_ 84 85SC, 87 _8 SS SO _ Tot. Barkc Lending .114hs t416.3t7.;19.:21.421.3 22.7 Transport Lendfra 1.6 1.9 2.8j2.1 1.5 1.7 2.6 1.1 2.8 .3 Percentage .413.316.?M4.9 9.2 9.9 3. d.3 13.1 S.S CLAMrV Inut ru to fUl I di91t90 F igure 1 4. Three factors accounted for the unusually low total in FY91. First, lending to C*hina and India, at S153.6 million, was sharply down from the average of the Trevious five years ($560 million). Lending to China fell sharply after the events of June 1989 and lending to India dropped due to slippage of the S266 million National Highways Project. Exoected commitments in FY92 and FY93 are expected to bounce back to about $1,000 million per year. Second, following the trend first noted In the FY89 Annual Report, projects approved by the Board during FY91 included a large number of multi-sector projects with large transport components (see Table I in the Annex for a list of these projects). Although it is not possible to be precise about the amount of the Bank loans likely to be disbursed against transport components, a rough estimate suggests it might be over $450 million. Finally, there were at least two adjustment loans during FY91 which attempted, among other th ings, to facilitate transport sector adjustments. It is not possible to identify how much of these loans should be counted as part of transport lending. 5. The forward lending program envisages commitments of $2,666 million, $4,153 million and $3,822 million in FY92, FY93 a.. FY94 respectively. The increase over FY91 assumes normal lending to China and India and, in FY93, substantial loans to Mexico. If these commitments are realized, dedicated transport 3 lending will again account for 12 to 15 percent of total Bank lending. This is consistent with the long-term trend in the Bank's overall transport lending. Regional and Modal Distribution 6. The regional distribution of FY91 lending is illustrated in Figure 2. Lending to Afri^a, at $31 0 million, was down from the previous year and was also less than the $449 million anticipated in the FY90 Annual Report. Africa nevertheless accounted for 24 percent of total commitments, compared to 19 percent in FY90. Lending to Asia, at $286 million (23 percent of the total), was also lower and well below the levels in FY88 ($1,471 million) and FY89 ($1,003 million). It was also below the $510 million anticipated in the FY90 Annual Report. The decline was caused by slippage of the $266 million National Highways Project in India and by the continued low level of lending wo China. Lending to EMENA, at $553 million (44 percent of the total and up from 26 percent in FY90), was lower than FY90, but higher than the long term average for the region and higher than the $333 million anticipated in the FY90 Annual Report. The increase did not, however, reflect increased lending to Eastern Europe (which is only programmed to begin in FY93). Instead, it was due to inclusion of a $300 million State and Provincial Roads Project in Turkey which was not anticipated in the FY90 Annual Report. Finally, lending to LAC, at $114 million (9 percent of +he total), was sharply down from FY90 ($1,029 million) and also down from the $315 million anticipated in the FY90 Annual Report. It was partially caused by deidys to the $200 million State Highways Management Project in Brazil. 7. The modal distribution of this year's lending operations (see Figure 3) continues to reflect the importance of highways, the absorption of urban transport projects as transport components of general urban operations, and the long-term decline to the Bank in the importance of dedicated ports and railways projects (although actual numbers were up by two from the previous year). Once lending to Eastem Europe develops more fully, there are likely to be more loans for ports and railways, although current plans are to formulate these loans as components of transport sector operations. Transport sector operations and other multi-modal projects remain important and continue to account for about 25 percent of dedicated transport lending. Quality of Project Formulation 8. The attention given to environment, scope for private sector development, poverty (including Women in Development) and technology, are examined in detail in section III of this report. The section concludes that environment was wAll handled - some projects being quite outstanding - and efforts should now be made to ensure that the standards of the weakest projects are raised to those of the best. The scope for private sector development and poverty were not well handled in those projects 4 Figure 2: Dedicated Transport Lending Regional Distribution FY82 - FY91 USS, inn 8600- ,____At ~EMENA 400 f .lli|..ii_iiBLAC au 0F 82 93 _ _4 8S _ J07 . I OS 9t SO Arr Ica 199 286 464 410 193 227 629 244 543 310 Asia 366 1094 1323 710 971 601 1471 1003 505 288 EMN4A 398 116 309 357 193 394 327 296 708 553 LAC 652 447 501 662 141 524 211 224 1029 114 Tota I 1615 1923 2597 2139 1498 1746 2638 1767 2785 1263 Figure 2 Figure 3: Modal Distribution of Lending (Oedicated Transport Projects) FY84-91 Nuber of Lendt ng Cperations 30 -… 25 - - 20 - 20 E rrtk FY 84 8S 88 87 |8 69 90 91 multimodal I 4 |1 | 0 2 |6 |5 |4 HIghways 20 14 12 168 23 8 14 8 |Pcorts 3 |6 |7 |5 |4 | 1 |2| _a I I ways s a 4 4 6 |3 2 Lrban 4 |1 | 0 3 |2 |1 | a |Other r7 O | O a I | 0 2 |1| TotA I 33 | 28 9 24 28 9 38 9 21 23 I1J Othuw in Fr2M includs one MaltI-feaWr Poject Figure 3 5, where such issues are relevant and there is a need to provide more guidance to Bank staff working on these topics. Finally, the analysis of technology issues was too superficial and the Bank either needs to become more selective about the areas of technology it supports, or to recruit more staff with technical skills. 9. Overall, particularly when compared to other sectors, the q ending modalities used during FY91 were conservative. They only included one hybrid sector adjustment operation, the Transport Sector Adjustment/Investment Program in Senegal, which consisted of a quick-disbursing adjustment lending component of $20 million and an Investment component of $583 million (the Bank loan financed $15 million of the former and $48.5 million of the latter). The quick-disbursing component was designed to provide general budgetary support and to help the government implement policy changes required to ensure: (i) future allocations for road maintenance would be sufficient to finance essential maintenance requirements; and (ii) the railway (which has been made more autonomous) is established on a sound financial basis and will be operated without the need for operating subsidies. There were also two public sector/enterprise loans in Argentina and Colombia during FY91 which attempted, among other things, to promote major policy reforms in the transport sector. 10. The hybrid sector adjustment operation in Senegal was well formulated and built on years of experience and successful policy reform promoted at the sector level. The quick-disbursing element was relatively small, but large enough to command the attention of the higher levels of government whose decisions were needed to successfully change the sector-level policies included in the project. There is clearly scope for replicating this type of hybrid operation elsewhere in the sector. The two general adjustment operations in Argentina and Colombia were also carefully formulated. They drew on years of experience gained at the sector level and grasped a window of opportunity (a recent change of government) to try and achieve major policy reforms when the time was ripe. There should be a wider use of general adjustment operations to facilitate policy reform. 11. At least sixteen multi-sector operations with significant transport components were also approved during FY91 (see Table 1, part B). Five provided emergency relief to India (cyclone emergency), the Philippines (earthquake reconstruction) and the countries affected by the Gulf war (Egypt, Jordan and Yemen). This illustrates the importance of transport as a means of providing quick-response aid, channeled through relatively strong executing agencies, to deal with natural disasters and other calamities. Another six operations consisted of urban projects, while the remainder were general infrastructure projects. 12. There were no free-standing urban transport projects during FY91. Urban transport lending was confined to transport components processed as part of larger urban infrastructure projects. In general, these components were formulated in less 6 detail than dedicated transport projects and paid less attention to areas of special emphasis. This was not surprising, since the projects typically covered a wide range of sub-sectors, including water supply, drainage, solid waste, housing and urban transport (the Medium Cities Development Project in China also covered education, health, an industrial component and pollution control). The projects not only involved several different executing agencies, but often covered several different municipalities. Under these circumstances, the urban transport cornponents (which, of necessity, have to be formulated by one or two people), cannot devote much time to institutional development and promoting areas of special emphasis. It Is difficult to see how these multi-sector/multi-agency projects can be administered within current supervision coefficients. It is recommended that they be closely monitored to ensure that the time saved processing them as multi-sector projects is not absorbed sorting out quality control problems during project supervision. B. Sector Work and Other Support Activities Country-Specific Sector Work 13. The time recorded against country-specific sector work is summarized in Table 4 in the Annex and is Illustrated in Figure 4. The total time recorded rose from 655 * FIgwre 4: Time Spent on Country Specific Transport Sector brk C1987-1991) 700 FY7 Y0 l F0 Fl Fiscal Yr Figure 4 7 staff weeks in FY90 to 696 staff weeks in FY90 (an increase of 6 percent). The regional distribution of time varied widely. Africa and Asia recorded most time (339.4 and 274.0 staff-weeks respectively), while EMENA and LAC recorded least time (15.5 and 67.2 staff-weeks respectively). EMENA and LAC also recorded little time on sector work during FY90. In spite of these figures, EMENA nevertheless carried out a reasonable amount of sector work, but recorded it against other codes and ended up spending 123.5 staff-weeks on sector work, including 54.4 staff-weeks spent on a highway survey of Eastern Europe (e.g., the reports on Poland and Hungary were debited against loan processing). 14. More sector work is now being done by consultants. In FY87 consultants accounted for legs than 37 percent of the time recorded on sector work, but the proportion has risen steadily since then to reach 51 percent in FY91. Overall, consultants have been used to expand the range of skills available to sector staff. However, in some cases, sector studies have become too dependant on consultants. In one case, the entire sector mission (including the mission leader) consisted of consultants. This undermines one of the major objectives of sector work. Sector work provides an important opportunity to initiate policy dialogue on a wide range of sector management issues and to explain the Bank's policies, priorities and areas of special emphasis. The Bank cannot expect consultants to do this. 15. Seventeen dedicated transport sector reports were completed during FY91 and at least six other sector reports contained chapters dealing with transport (see Table 3 in the Annex for the list of transport sector work).' They covered a wide range of topics. There were four wide-ranging transport sector reviews (in Bangladesh, Cote d'lvoire, Sri Lanka and Uganda), two general reviews with more limited scope (in Eastern Europe and Viet Nam), three which focussed directly on the link between trade and transport (in Colombia, Mozambique and Zaire) and three which dealt with specific aspects of trade and transport (in Burkina Faso, SADCC countries and Uruguay), three which focussed on deregulation of the trucking industry and the scope for eventual privatization of state trucking companies (in Hungary, Poland and Yugoslavia), two which focussed on urban transport (in Nigeria and Madagascar) and several individual studies which dealt with topics like poverty (in Bolivia), road rehabilitation and maintenance (in Eastern Europe), the impact of shipping deregulation (in Indonesia), the road sector (in Nigeria) and public expenditures on transport (in Jordan and Venezuela). The amount of time spent preparing these studies varied from highs of roughly 90 staff-weeks on the SADCC report, 80 staff-weeks on Bangladesh and 55 staff-weeks on Uganda, to a mere 14 staff-weeks on the regional study of Eastern Europe. 11 There may also have been other Public Expenditure Reviews containing chapters on transport. These reports are classified as confidential and are not routinely available to PRE staff. 8 16. The sector reviews in Bangladesh arid Uganda were costly and particularly well done. The report on Bangladesh contained a good analysis of transport sector finances, the way it affects the overall macro-economic balance and emphasized the need to strengthen domestic revenue mobilization through better pricing and cost recovery policies. It also paid attention to safety issues (and the institutional framework needed to enforce safety standards), contained a useful analysis of poverty in rural areas and the scope for increasing involvement of women in rural road maintenance, dealt effectively with environmental matters, contained a special section on the private sector and also presented an agenda for increasing private sector involvement In transport. The report on Uganda was equally wide-ranging. It paid a great deal of attention to institutional issues (including terms and conditions of employment, and training needs), transport sector financing, civil aviation, urban transport, and the scope for increasing private sector involvement to increase the effectiveness of construction and maintenance activities. It also dealt with innovative ways of delivering technical assistance using retired technical experts (working as a consortium) to take over line responsibility for some functions while training local counterpart staff. 17. INUTD had an important influence on sector work during FY91. INUTD staff prepared two sector reports (the reports on the trucking industries in Hungary and Poland), made a substantive contribution to the work in Bangladesh, and contributed to two reports on Eastern Europe and the report on Uganda. The influence of INUTD's policy and research work was also noticeable. A number of reports addressed the issue of multi-modal transport was noticeable and several reports focussing entirely on the link between trade and transport. Several reports also showed concern for the financial performance of the transport sector and the important link between financial performance at the sector level and the country's overall macro-economic balance. Finally, several reports showed growing awareness of motor vehicle exhaust pollution and the need to address it through regulatory and market-based interventions. The influence of INUTD work appears to be related to the quality of its published work and, more important, the efforts made to disseminate the key messages through PRE, regional and Bank-wide training seminars. 18. INUTD has been less successful in influencing sector work on environment, labor redundancy and railway restructuring. Sector work still pays too little attention to environmental matters. There is clearly a need to provide better guidance and training in environmental analysis to ensure that environmental matters - particularly environmental management at the sector level - receives adequate attention In future. Labor reduindancy suffers from similar problems. It receives little attention in sector work, surfaces as an iscsue when projects are formulated and is then fudged (with references to government's being required to "work out strategies for dealing with surplus staff") because staff do not know what to do about it. Since INUTD's work on labor redundancy is expected to be completed early in FY92, there needs to be a concerted effort to disseminate the core messages and provide better guidance 9 to Bank staff dealing with labor redundancy issues. Finally, with regard to railway restructuring, the regional studies and workshops organized by the Africa TD have been very successful at developing a policy agenda for African railways. This needs to be followed up by active dissemination of INUTD's paper on 7he Bank's Evolving Policy Towards Railway Lending which is nearing completion. 19. Other topics which were not well handled in FY91 sector work included poverty (and the associated WID issues) and private sector development. INUTD has provided no guidance or staff training to Bank staff on either of these topics and needs to give serious consideration to doing so in the near future. When the Bank selects a new area of emphasis, PRE (or some other designated part of the Bank) needs to provide clear guidance to Bank staff on the nature of the issues, how they might be dealt with and what attention they are expected to receive In Bank sector work and lending operations. Areas of special emphasis will otherwise continue to be dealt with an ad hoc basis and elicit comments in SARs like "the civil works will increase employment and hence raise incomes in low-income areas" which, apart from being unproven, are better left unsaid. 20. Finally, sector work was weak on technology issues, particularly those related to construction technology, multi-modal transport and associated data information systems, motor manufacturing technology (particularly in relation to the environmental performance of vehicles) and alternative transport fuels. There is a need to strengthen sector work on technology matters, particularly in reports dealing with Eastern Europe and ,other centrally planned economies. Since the Bank has few sectoral staff competent in these areas, most of the input will have to come from other Bank staff (e.g., staff working in the industry and energy sectors), or from consultants. Sectoral staff nevertheless need to be more conversant with technology issues, so that they know when, where and what kind of consultant advice Is required. Regional Studies 21. There has been a rapid growth in regional studies carried out by the TDs (see Tables 4 and 5 in the Annex for a list of regional studies and amount of staff time spent on them).Y In FY87 they spent no staff time on regional studies (see Figure 5). By FY91, the number of regional studies finalized by the TDs had risen to eleven and they were spending 443 staff weeks on such activities (199 staff-weeks of in- I/ Regional studies deal with general transport issues, rather than those related to one or more specific countries in the region. They focus on sector-wide saegies, human resource development, institutional issues, and other generic regional problems. 10 FIgure 5: Time Spent on Regional Transport Studies, 1987-1991 Cetaff Weeks) P7 PM Pot tiyt CSlt FY93 FY89 FY90 FY91 600 500D 400 300 200 100 0 -100 200 300 400 500 600 Figure 5 house staff time and 244 staff-weeks of consultant time). INUTD in contrast, only spent 270 staff weeks on policy and research work in FY91 (183 staff-weeks of in- house staff time and 88 staff-weeks of consultant time). Most of the studies prepared by the TDs had a regional focus and did not conflict with the policy and research work carried out by INUTD. 22. Most regional studies were done in Africa. They covered regional sector strategies (for rural roads and transport, urban transport and railways), human resource and institutional development, and is*ues related to orga;it; ation of road construction and maintenance. Asia was also fairly active during FY91 and produced a major urban transport strategy paper, two background papers supporting the strategy, and a report on the feasibility of using a floating maintenance and training facility to improve maintenance of public equipment and infrastructure. EMENA completed no regional studies during FY91 (although the TD produced resource material for a Transport Symposium for Eastern Europe) and neither did LAC. EMENA has no plans for regional studies in FY92. LAC, on the other hand, is completing a r-gional study on contract maintenance and plans to start work on a regional study of trade and transport due to be completed in FY93. 11 23. Although the TDs have only been seriously involved in regional studies since FY89, they are starting to produce work of reasonable quality. The urban transport strategy for Asia is a well-thought out high quality document, the paper on multi-year railway Investment plans prepared by AFTIN Is currently being considered for publication as a PRE Working Paper, another paper on rural roads in Sub-Saharan Africa is about to be published as a World Bank Technical Paper and the ongoing work on contract maintenance is also of high quality. There is some scope for improving co-ordination on regional studies between the TDs and INUTD. On contract maintenance, such co-ordination Is already taking place with regional studies in Africa and LAC feeding into an INUTD study looking at contract maintenance world-wide. There has also been close co-ordination between INUTD and Africa on railway restructuring and urban transport. There is, however, scope for increasing co- operation in other areas, including WID issues, urban freight transport, private financing of urban transport infrastructure, and human resource and institutional development in the road sector. INUTD Policy and Research Work 24. During FY91 INUTD completed nine reports summarizing the results of the division's policy and research work (see Table 6 in the Annex for a list of these reports). Three of the reports dealt with environmental matters (automotive air pollution and port related-environmental issues), two dealt with restrictive labor practices and their impact on labor productivity, two dealt with port management, one with road management information systems and one with the design of major policy reforms. In addition, the division also produced eight Infrastructure Notes1' providing guidance on topics like use of outside contractors for port maintenance, application of the Highway Design and Maintenance (HDM) model and designing low-cost transport components to reach the rural poor. 25. Work continued during the year on labor redundancy, port administration, management information systems for roads, environmental issues, user charging and accountability for roads, and trade logistics management. Two papers were completed on restrictive labor practices in ports and railways which noted that such practices may prevent developing countries from benefiting from investments in new technology and can seriously constrain efficiency and productivity. Bank projects should therefore assess the need for changes in labor incentives and organization - including the need for possible staff redundancies - to Improve enterprise performance and should formulate strategies for dealing with redundant labor. The main report on labor redundancy is due for completion during FY92 and a training seminar is planned to help disseminate the key messages to Bank staff. 3/ Infrastructure Notes are short, two to four page documents outlining state-of-the-art practices to help guide operatonal staff. 12 26. Two reports were completed on port administration. They focussed on the legal and Institutional structure of port administrations and on their legislative basis. Subsequent work will deal with alternative regulatory systems (i.e., central versus de- centralized management structures) and the scope for involving the private sector in all aspects of port operations. The aim is to provide guidelines for governments considering institutional reform of the port sector. A report was also completed on management information systems for roads. This report, together with ongoing work, is attempting to provide a framework within which information for the highway sector can be identified, collected, stored and retrieved in an organized and efficient manner. It is attempting to do so on a modular basis, so that relevant information can be made available to each level of management. 27. Environmental work is currently focussing on two topics: automotive air pollution and marine pollution. The work on automotive air pollution is building on an earlier paper published during FY91 and is expected to lead to a document which will be published as a joint World Bank/UNEP report in FY92. The paper advocates a number of measures to control automotive air pollution in developing countries, including cleaner fuals, greater use of traffic management, policy measures such as taxes on leaded gasoline, and vehicle taxes and license fees designed to discourage use of polluting vehicles. The work forms part of a joint World Bank/UNEP effort on Transport and the Environment initiated during the year. The work on marine pollution led to publication of a report on the IMO MARPOL 73/78 Conventior# which effectively prohibits or controls vessels from discharging any form of wastes at sea. The report aims to make Bank staff and borrowers more aware of the Implications of the convention and the need to provide adequate port facilities to receive ship-waste at ports of call. 28. The work on user charging and accountability for roads was substantially completed during FY91 and a draft of a major policy paper on the subject has been forwarded to PRSVP for review. The paper covers a wide range of topics, including pricing and cost recovery policies for roads, the choice of appropriate charging instruments, how to deal with externalities (the role of pricing instruments to help control congestion, pollution and road accidents), and how to use charging policies to create a surrogate customer-supplier relationship to help strengthen management of roads. The paper is expected to be published during FY92 and dissemination will be supported by a two-day training seminar. 29. During FY91 the work on trade logistics concentrated on analysis of a market survey of producers in developing countries to identify changing patterns of trade and how further changes during the 1 990s are likely to affect the transport and logistics systems which support this trade. The market survey provided the basic building 4.1 This is an intemational convention for the prevention of pollution from ships and is known as MARPOL 73178. 13 blocks needed to assess the changing demand for infrastructure, the need for modernization of current facilities and the important role of information technology. Country-wide surveys of trade logistics practices in Poland and Hungary were also initiated to support this work. The results will be synthesized into a report during FY92 which will set out an agenda for reform of trade logistics practices and the steps the Bank might take to help developing countries implement these reforms. Workshops 30. Workshops attended by senior officials from borrowing countries provide important opportunities for policy dialogue and disseminating information about best practice at the sector level in both developed and developing countries. As a result, the regions are attaching increasing importance to workshops and organized six during FY91, although one of these (for selected North African and Middle Eastern countries) had to be postponed because of the Gulf war. They focussed on road maintenance (part of an on-going effort in Africa which will be continued in FY92), railway restructuring, urban transport and transport policy (see Table 7 in the Annex for a complete list of these workshops). EDI also organized a workshop on transport problems in mega-cities in developing countries. This activity Is likely to continue in future, with the regional and sub-regional focus becoming inc .asingly important. 31. The funding of workshops raises problems for the regions. All workshops have to rely on outside funding and, although this offers some advantages, It can also dilute the policy message and the selection of participants. Outside funding agencies have their own objectives (usually related to promoting their own exports) and, unless carefully monitored, the Bank's role can be reduced to being the managers of another country's aid program. To increase the outreach and frequency of workshops, the Bank may wish to consider establishing a regional technical assistance fund, available on a grant basis, to partially finance regional workshops. The fund could be modelled on the successful regional technical assistance fund operated by the Asian Development Bank. Training of Bank Staff 32. Staff training is an important mechanism for keeping Bank staff abreast of developments at the frontiers of their subject and providing them with the skills necessary to handle the Bank's areas of special emphasis. Training is provided in two main ways: as concentrated training programs lasting from one day to one week (usually at a venue outside the Bank), or as short one or two-hour in-house seminars. 33. Six major training programs were held during the year: on highway sector develonment, urban transport, recent developments in transport modelling, transport engineering for non-engineers, customs procedures and port operations (see Table 8 in the Annex for the complete list of courses). The first course was financed by the 14 French government, the next three by the Bank's Training Division, the fifth by the LAC TD and the final one was jointly financed by the Bank and the Port of Barcelona. No specific courses were offered on environment, poverty, women's Issues, or on private sector development, although the urban transport and port courses covered some environmental issues (including road safety) and the port course dealt with labor redundancy and therefore touched on poverty Issues. The Environment Department also ran a course on environmental impact assessment, to which transport staff were invited. The course nevertheless did not address sector management issues. During FY92 INUTD intends to offer training courses on labor redundancy:. user charging and accountability for roads, using the highway design and maintenance model, highway information systems, private sector development, transport engineering for non- engineers and air pollution. Highest priority should be given to offering the courses where guidance is most needed: on labor redundancy, private sector development and air pollution. 34. Thirty six short training seminars were also orgar,ized during the year. They were arranged by INUTD, or by INUTD in conjunction with the regional TDs. These seminars covered a wide range of topics, including the administration of road agencies, bicycling policies In China, environmental issues, privatization of airlines, road user charges in Sub-Saharan Africa, bridge management, private sector role in transport, and improving port management. Most seminars were well attended and regional staff appreciated the efforts made to provide this training. 35. The seminar training was nevertheless not as effective as it could have been. It was organized on a zero budget. As a result, it was not possible to develop any seminar themes, or to invite speakers fram outside Washington. Instead, the organizers had to rely on people already planning to visit the Bank and they were often here to "sell" their own ideas, rather than introduce Bank staff to what was going on at the cutting edge. Seminar training cannot be made effective without a budget to cover the costs of outside speakers. Even a minimal budget of $200 per seminar would greatly increase the effectiveness of training seminars. C. Supervision 36. During FY91 there were 206 transport projects under supervision, compared to 223 in FY90. Of these 71 (34%) were in Africa, 65 (32%) in Asia, 37 (18%) in EMENA and 33 (16%) in LAC. The average amount of time spent on supervision was 11.8 staff-weeks per project; the figures varied from 1 1.4 staff-weeks in Asia to 12.6 staff-weeks in EMENA. The actual figures are constrained by the coefficients which determine the amount of staff time which can be allocated each year for supervision (10 for ports and railways projects, 8 for roads projects and 12 for other and multi- modal projects). These figures have not been raised for several years and, although they may well be satisfactory for straigi it-forward investment projects, they look too low for projects which are seriously attempting to promote major policy reforms. It 15 took an average of nearly 15 staff-weeks to supervise SECALs during FY90 and the Bank should be willing to spend a similar amount of time supervising complex transport sector operations with major policy reform components. The low supervision coefficients perhaps explains references In the Annual Review of Project Perforr. lance Results for 1990: Transportto .ine need for more supervision of highway sector policies and Inadequate supervision of railway, port and mixed-mode projects. The report argues that the quality of supervision should not be sacrificed because of Bank Group budget constraints. 37. The average ratings for the different projects during FY91, by region, are shown in Table 9 in the AnnexY Railways projects had the worst ratings (particularly those in Africa), followed by highways and ports. Transport sector and "otherw transport projects had the best ratings. In terms of regional ratings, EMENA had the best overall average rating followed by Asia, LAC and Africa. The overall average rating of 1.72 is better than the ratings in both FY90 (1.85) and FY89 (1.78). The average rating of transport projects compares favorably with those of all Bank projects under supervision (see Table 10 in the Annex). The overall average for transport projects was 1.72 compared to 1.87 for all Bank projects as a whole. The same was true during FY90 and FY89. 38. The above averages are compiled from the ARIS reports which evaluates the performance of each project in terms of eleven separate indicators: their overall status, project development objectives, compliance with covenants, project management performance, availability of funds, procurement progress, training progress, technical assistance progress, studies progress, environmental aspects and financial performance. When transport sector performance is compared with other sectors&' on the basis of each of the eleven indicators - rather than in terms of their weighted averages - It appears less than satisfactory (the comparison is summarized in Table 11 in the Annex). In terms of overall status, transport ranks eighth out of the eleven sectors, seventh in terms of technical assistance, ninth in terms of project management and procurement (being better only than agriculture and population projects), and is worst in terms of training. This raises serious questions and suggests that something may be fundamentally wrong with the rating system? Some regions have already recognized that supervision needs to be given higher priority In the Bank's work program and have taken steps to improve matters. Africa has launched I/ Projects rated 1.0 are satisfactory and are experiencing no more than minor problems; thoss rated 2.0 are experiencing minor problems; those rated 3.0 are experiencing major problems which are being addressed adequately; while those rated 4.0 are experiencing major problems which are not being addressed adequately. _I The ARIS reports cover eleven main sectors: agriculture and rural development, education, energy, industrial development/finance, industry, population, power, telecommunications, transportation, urbanization, water supply & sanitation. Public sector management, technical assistance and tourism have been excluded. 16 a major cross-sectoral initiative to develop an "implementation culture" and has substantially increased average supervision coefficients from about 10 staff-weeks to 13-14 staff-weeks per project. It is suggested that regional staff should attempt to find out what has gone wrong with the rating system, while transport divisions should make strenuous efforts during supervision to improve the effectiveness of project management, procurement, training and technical assistance. IIl. ISSUES OF CONCERN TO SECTOR STAFF 39. Following consultations with the regions, it was decided in this part of the Annual Report to examine the way the Bank's lending operations and sector work dealt with environmental Issues and the scope for private sector involvement in Bank operations. A. Environmental Issues 40. This year's projects made serious efforts to ensure they minimized adverse environmental impacts, including impacts on road safety which is treated as an environmental impact, and enhanced beneficial ones. Some projects were outstanding in the way they dealt with environmental matters, with the Morocco Port Sector Project, Bangladesh Third Inland Water Transport Project, the Tanzania Railway Restructuring Project and the Zimbabwe Second Railways Project deserving special commendation. The port project in Morocco not only dealt with the obvious problems of disposing of dredge spoil in accordance with the London Dumping Convention, but also addressed issues of dust release (caused when handling bulk cargoes), the safe handling of hazardouis cargoes, provision of facilities to receive ship waste, introduction of restrictons on the dumping of urban waste-water Into the port area and training of staff to raise environmental awareness and impart skills to address identified problems (see Box 1). The inland waterways project in Bangladesh provided for the preparation of an environmental map of the waterway system and provision of equipment and training to enable local staff to test bottom sediments/dredge materials and develop plans for safe disposal. 41. The two railways projects in Tanzania and Zimbabwe were even more unusual. As recently as three years ago, railway projects did not routinely include any statement on environment (see Kenya Second Railway Project, 1987, and Zambia Fourth Rallway Project, 1985). Now, they are addressing the impact of flood rehabilitation on drainage patterns, encouraging use of environmentally safe engine coolants in locomotives (in place of chromate-based coolants), providing facilities for recycling waste oil (to avoid uncontrolled dumping), use of environmentally sound de- greasers and cleaners (in place of benzene), use of safe herbicides for weed control and introduction and enforcement of appropriate occupational health and safety regulations in railway workshops (see Box 2). 17 Box 1. Dealing With Environmental Issues: Morocco Port Sector Project Potential impacts likely to result from the project are related to the following: (a) excavation of fill and disposal of dredging materials associated with the construction of a container terminal at Casablanca; (b) disposal of dredging materials associated with maintenance and rehabilitation dredging in Moroccan ports; and (c) dust release during handling and storage of dry bulk cargoes. Construction of the new container terminal at Casablanca involves the following quantities of materials to be moved: 3 million m9 of fill to be placed within the boundaries of the existing port, 0.75 million m9 of soft materials and about 50,000 ma of hard materials to be dredged from the port area. The impact of heavy truck traffic associated with fill work could be mitigated through providing a portion of the required volumes through dredging of the sea bed. ODEP is currently investigating appropriate sources of sand in areas where no significant damage to marine ecology is to be expected. Conceming the dredging work, analyses of sediments have been carried omit to identify any toxic or hazardous materials and define appropriate measures for their disposal in compliance with the London Dumping Convention. These measures show that the toxicity of the sediments is generally well under critical levels. Accordingly, disposal over a selected site in deep open-water is acceptable. The authorized site will be imposed on the contractor for civil works through adequate provisions in the bidding documents. The maintenance and rehabilitation dredging program is a ionger-term operation for which an environmental assessment is deemed appropriate. The annual volume of maintenance dredging in Moroccan ports is about 3 million m3, consisting mostly of sand, and a limited amount of mud (50,000 m3), scattered all along the coast. the environmental assessment will be prepared by DPb with the assistance cf a local laboratory and intemational consultants as appropriate. This environmental assessment will focus on the following analyses: (a) determination of the extent and potential impact of contamination of sediments to be dredged from the ports; (b) characterization of all the sediments in the ports where pollution effects could be potentially serious; (c) identification of measures likely to eliminate the sources of the contaminants; (d) selection of disposal methods; and (e) recommendation of long term monitoring procedures of the dredging and disposal systems. The detail and sophistication of analysis and recommended mitigative measures should be commensurate with the potential impact in each particular port. Accordingly, it was confirmed, at negotiations, that the environmental assessment would cover the ports of Agadir, Kenitra, Larache, and Safi.... The problem of reducing dust release is typically associated with activities involving bulk handling of coal and cereals. Controlling cereal dust in silos is particularly important to prevent the danger of explosion. These problems and specific environmental impacts of other activities will be dealt with during the design of the facilities involved. Assurances were obtained at negotiations, that all facilities to be financed as subprojects would be designed in accordance with environmental health and safety standards acceptable to the Bank. This requirement will be made part of the consultants' terms of reference for any design study. Office of Port Operations (Office d'Exploitation des Ports) b Directorate of Pors . ~~~~~~~~~~~~I 18 Box 2. Dealing With Environmental Issues: Tanzania Ralways Restructuring Project There are two issues of significant environmental concem in the Tanzania Railway Company (TRC): (a) the remedial actions to be taken to relieve flooding in sections of the system without shifting flood hazards to contiguous areas; and (b) the use of toxic chemical compounds and the satisfactory disposal of used oil. Floods TRC's operations are subject to severe disruptions during the rainy season by floods and the consequent inundation of embankments and the overflowing of bridges.... Under the project, some bridges in this area would be rehabilitated. However, aside from the technical concern of the likely Incidence of flooding and its impact on bridge design, there is the implication of any bridge design for the passage of flood waters and the shiftng of flood hazard. With the assistance of the West German aid agency, KfW, TRC has commissioned consultants to undertake a detailed hydrological study of waterways on the system, the likely incidence and patterm of floods, the implications of such projected flood patterns for the design of the bridges to be rehabilitated and any environmental inplications of such designs. The consultants' findings indicate that no adverse environmental impact in the form of the shifting of flood hazard is anticipated from the bridge work.... KfW, who are expected to fund the bridges rehabilitation component of the project, have indicated to IDA that they will review the final designs for each bridge in ecologically sensitive or flood-prone areas to ensure that no adverse environmental effects arise from the rehabilitation program.... Chemical Comoounds and Used Oil: TRC currently uses coolant with chromate-based compounds in its locomotives. There are no set procedures for the disposal of such compounds. Chromate is a health hazard. During appraisal, IDA was informed that with the Canadian aid agency's (CIDA) assistance, TRC has begun a program of using an environmentally safe substitute (Nalcool) as an engine additive for the Canadian-supported fleet of locomotives. Confirmation of the use by TRC of an environmentally sound compound as the standard engine coolant for all of its locomotive fleet will be sought from TRC during negotiations. The current practice for the disposal of used oil is environmentally unacceptable. TRC sells used oil to the general public for reuse as a coagulant in stagnant water to inhibit the breeding of mosquitoes. There is no available third party recycling facility for its used oil. Accordingly, the installation of a used-oil reclamation plant in TRC has been provided for under the project. TRC does not currently use chemicals to control the growth of weeds on the track. However, it is encountering increasing difficulties in controlling such growth through highly labor intensive methods. As a result, TRC proposes to use a herbicide for weed control. The proposed herbicide is "Roundup (containing the equivalent of 360 gramsflitre of glyphosate). This herbicide is environmentally acceptable. Benzene is used routinely for cleaning material in the workshops and for hand-cleaning by TRC's workshops staff. Benzene is increasingly recognized as a health hazard. TRC was unaware of the health hazards of continued exposure to benzene and has undertaken to discontinue its use as a hands cleaning compound. Readily available degreasers would be used in its place for hands cleaning whilst gloves will be provided to workers in contact with benzene for the cleaning of components. In general, occupational health and safety awareness in TRC is poor. There is one routine medical check-up for acceptance into service but no subsequent follow-up, even of workers exposed to high levels of noise or toxic substances in workshops. There is sporadic and inadequate provision of safety or protective clothing and equipment and there is no organized safety training effort. To address this issue of an absence of adequate consciousness of occupational safety and health in the organization, specific provision has been made in the project for technical assistance and equipment to establish an effective occupational health and safety capacity in TRC.... 19 42. On the other hand, while the treatment of environmental issues in some projects was outstanding - and the overall treatment of environmental matters was satisfactory - there were some weaknesses in individual operations. The main weaknesses were as follows: * Several projects paid too little attention to road safety issues, even though road accidents are now the second most common cause of death amongst the economically active population in developing countries. In particular, they paid too little attention to the way rural road improvements affect road safety. When such roads are improved, high speed traffic conflicts with pedestrians and slower moving non-motorized traffic. More consideration needs to be given in the design of such projects to road safety audits and provision of by-passes, speed-humps and other means of segregating different types of traffic. * Too little attention was paid to operation of workshops and application of regulations governing health and safety at work. The above cited railway projects offer e model which could usefully be followed in other sectors, particularly when, as in many of this year's projects, they Involve rehabilitation of workshops and procurement of construction and maintenance equipment. * Projects often offer a correct diagnosis, but fail to show what steps have been taken to ensure appropricte remedial measures are taken. For example, one project stated it would discourage the dangerous practice of planting trees on the shoulders of the road, but did not state how (i.e, whether the government had agreed to this). Another project stated that measures would be taken to prevent run-off and siltation from construction works, but again offered no evidence of how this would be done. * tUrban projects with transport components were uniformly weak in their treatment of environmental Issues, even when the project involved construction of new urban roads or widening of existinJ ones. There was no reference to environmental impact assessments (either in the form of multi-criteria analysis, or otherwise) and no mention of public consultations. * There was too much emphasis on the potential impact of the project and too little emphasis on promoting sound environmental management practices. 43. Another general weakness was that economic and sector work paid too little attention to environmental matters. Only five sector reports discussed environmental issues and, apart from one of the reports on Eastern Europe and those in Nigeria and Bangladesh, did so on a limited basis. This is a serious weakness, since sector work constitutes an important element in the Bank's policy dialogue with borrowers and is the main vehicle for identifying policy issues which need to be addressed under the Bank's lending operations. Sector work should routinely ask questions about: (i) environmental management practices in ports (including dredging practices, handling of hazardous cargoes, etc.); (ii) the incidence of motor vehicle exhaust pollution and the regulations/incentives available for reducing it; (iii) road safety and ways of improving it (including the need for road safety audits); (iv) operation of workshops 20 and application of regulations governing health and safety at work; and (v) the need for training to improve environmental management practices. These concerns can then be routinely reflected in subsequent lending operations or, when major policy reforms are involved, In SALs, SECALs and other policy-based loans. 44. Finally, the wide variation between the standards of the best and the worst projects, underlines the need for better environmental training for Bank staff. INUTD has already Issued guidance on Designing Environmentally Sound Transport Projects (Infrastructure Note ENV-1), Environmental Considerations for Port and Harbor Developments (W.B. Technical Paper No. 126) and Automotive Air Pollution (PRE Working Paper No. WPS 492). The Environmental Department, the regional environmental divisions and the regional technical departments have also organized ad hoc workshops on different environmental topics. These initiatives now need to be complemented with a well-designed training program for sectoral staff which focusses on which issues need to be considered by sectoral staff, at which point during the project cycle they need to be examined (i.e., during sector work, or project formulation), the remedial measures available to deal with them, and the role of Bank staff in getting these measures implemented. B. Scope for Private Sector Involvement in Bank Operations 45. This year's projects included the usual Bank policies regarding use of ICB, LCB, international shopping and negotiated contracts for spare parts, but rarely went beyond this to ask whether the balance between the public and private sectors was appropriate, whether there were constraints on private sector development which might be removed and whether markets were sufficiently competitive to produce genuine efficiency gains. There were some notable exceptions. The Argentina Public Enterprise Reform Adjustment Loan is dividing the railways Into potentially profitable segments and then offering them as long-term concessions to the private sector (see Box 3). The remaining railway projects made little reference to the potential role of the private sector and concentrated on rehabilitation and strengthening public sector management. Urban projects with transport components likewise showed little concern for the private sector. 46. Port projects are showing increasing concern for the potential role of the private sector. The Pakistan Port Modernization Project is encouraging the private sector to take over responsibility for the handling of general and bulk cargoes and the private sector is being invited to purchase/lease and operate container cranes. Road projects, on the other hand, still appear to be carrying out too much maintenance and miscellaneous construction work using force account and pay too little attention to the competitive structure of the market and the potential for expanding the role of the private sector. Only six road projects attempted seriously to increase private sector involvement. The Senegal Transport Sector Adjustment/lnvestment Project and the Comoros Highway Maintenance Project both set targets for shifting road maintenance operations from force account to local contractors. The Ghana Second Transport Rehab/iitation Project Includes rehabilitation of some roads by means of labor-based methods, using sub-contracts administered through NGOs, the Turkey State and Provincial Roads Project is continuing the process of reducing in-house staff (10,000 staff reductions during the past 5 years) in favor of sub-contracting, while the Niger 21 Box 3. Private Sector Development: Argentina Public Enterprise Reform Adjustment Loan Ferrocarriles Argentinos (FA) has, for many years, been a notorious example of inefficiency and ineffectiveness. By the end of the 1 980s, deficits had risen to over US$ 600 million annually, accounting for nearly 10 percent of the total public sector budget. The Bank has had a long term relationship with FA. However, after the third railway loan was cancelled because of delays in execution, it became clear that traditional asset-based lending was no longer productive. Discussions began in 1987 on a new approach which focussed on restructuring of FA into a more customer oriented railway with a smaller network and labor force. Argentine reaction was positive, but the Alfonsin govemment was in the final year of its tern and could not implement decisions of this importance. The new Menem govemment faced even more severe economic challenges, and the decision was taken, with Bank support, to undertake dramatic change. The resulting restructuring program has several important facets. First, suburban rail services (along with the Buenos Aires Metro), and related employees and assets, are being transferred to a new Metropolitan Transport Agency. The govemrnment hopes to find a private sector entity which will assume responsibility for operating the metropolitan agency either under management contract or franchise. Next, all non- suburban trackage is being divided into geographically discrete systems (5 or 6 are planned), which are being offered under long-term franchises to the private sector with freight services to be operated on a for-profit, unsubsidized, generally unregulated basis. The govemment has already awarded the first of the franchises, has selected the apparent lowest bidder on the second, and has called for responses on two more. The final packages will follow over the next two years. Despite the difficulty of formulating appropriate packages because of the lack of commercial experience, there has been a generally positive response from the private sector, with many Argentine firms forming joint ventures with foreign partners having commercial railway experience. Finally, the government has undertaken a study of the viability and national significance of intercity passenger services with the expectation that many services wil be terminated, and those which are continued will either be managed directly by a public agency, or will be provided by a freight operator subject to full compensation for all costs involved. The Bank's role to date has consisted of technical assistance which financed many of the planning studies and is now financing the coordinating unit which is managing the transfer, and Adjustment Assistance (under a PERAU which has nelped indirectly to finance the costs of labor redundancy programs (12,500 workers already released, more than 30,000 in total are expected to be surplus before the FA process is complete). Second Transport Sector Credit and the Zaire Pilot Feeder Roads Project both provide a wide range of assistance to the private sector. Details of the initiatives in Niger and Zaire are summarized in Box 4. 47. The remaining road projects, including those involving workshop rehabilitation and procurement of additional construction/maintenance equipment, paid little attention to the potential for improving performance by involving the private sector. They did not ask whether: (i) there were sufficient contractors to ensure there was a competitive market; (ii) greater use of sub-contractors for periodic and routine maintenance might have reduced costs and improved quality; (iii) workshops might have been better managed by the private sector (under management contracts or other arrangements); and {iv) maintenance of equipment might have been more 22 Box 4. Examples of Private Sector Initiatives in Afica 1. Supoort for Small Contractors in Niaer An important component of the project will aim at improving the business environment in which private contractors have to operate. The component includes the following actions: (a) .... reform of procurement procedures for works and licensinglpre-qualification procedures; (b) .... reform of conditions of contracts, advance payments, guaranties Imposed by contracts on contractors and construction standards; (c) .... reform of public contracts management practices, .... to simplify and improve time effectiveness of payment practices; and (d) facilitate contractors' access to bank credits, equipment leasing and renting. These reviews will be carried out with the objective of implementing their recommendations ... not later than 12 months after project effectiveness.... Execution of works will also rely to a large extent on the private sector.... 2. Promotino Cometiton in Trucking in Niger The proposed project will cover implementation of an Action Plan designed to streamline the organization of the transport market and promote professionalism in the trucking industry.... The objective is to create conditions for a more effective functioning of market forces, namely removing obstacles to contacting freedom, eliminating price controls and ensuring market transparency. A key part of the Plan Is to provide for fair competition between truckers which in tum implies eliminating residual regulatory monopolies and helping create countervailing powers to the natural domination exerted by SNTN tthe state trucking companyl by helping small trucking companies to grow. The Plan should restore profitability of trucing which is essential to smooth out renewal of the fleet; the prevailing over.capacity is progressively reduced by normal attriton and moderate traffic growth and shortages could appear by 1997 based on consultant estimates unless the industry is put back on a healthy financial status. The Plan provides for up-front adjustments: unshackling of contracting freedom, privatization of SNTN, and substitution of indicative pricing for regulated pricing are conditions of effectiveness. 3. Encouraaina Small-Scale Contractors in Zaire .... in remote areas where competition between two or more contractors would not be feasible .... it will not be possible to follow LCB rules. These works will be divided on a geographical basis into about 25 contracts estimated at the average of USS 340,000. No individual contract is likely to exceed US$ 1.5 million for works over the four-year duration of the project The design of these contracts will be done by a consultant who will establish a schedule of price to be reviewed by IDA. He will also draft a simplified version of contract documents which will include suitable guarantees in the form of bank guarantees valid until the expiration of the warranty perod. Bids will be solicited whenever possible from potential executing entities, such as cotton companies, .... small enterprises, small NGOs and collectivities located in the areas which have the capacity to execute such work and are willing to provide the necessary security. Where such bidding is not feasible because of insufficient competition or does not produce acceptable results, negotiated contracts would be permitted on the basis of the specified schedule of price. Payrments to the executing entities will be made monthly on the basis of progress of work. Any nominal advance for mobilization would be secured by unconditional bank guaranties valid until after the work has been completed or advance is recovered for progress payments. The award procedure for all contracts exceeding the price review threshold will be monitored by IDA. A detailed reporting and monitoring system ... will be put in place to monitor execution of works and payments. 23 effective if government had withdrawn from the equipment business and hired or leased equipment from the private sector. 48. Sector work paid more attention to the private sector. The report on urban transport In Nigeria was notable for its private sector focus and suggested various ways of promoting private sector bus operations. The report on Bangladesh emphasized the poor performance of public enterprises and recommended privatization of Bangladesh Road Transport Corporation, that government divest itself of some inland waterways operations and some road ferries, and that it close uneconomic railway services (in favor of competing private sector bus operations). The Uganda report emphasized the desirability of encouraging the private sector to provide most public transport services and to undertake more construction and maintenance work under contract. The report on Eastern Europe considered privatizing parts of the railways and bus services, and also discussed BOT schemes. Three other sector reports - those on Hungary, Poland and Yugoslavia - dealt with deregulation of the trucking industry, reform of the fiscal regimes under which they operate and the eventual privatization of state trucking companies. 49. Private sector considerations are also being supported by several of the studies being carried out by INUTD and the TDs. They include a paper on The Bank's Evolving Policy Towards Railway Lending (INUTD policy paper in draft), Restrictive Labor Practices on Railways In Developing Countries (INU Report 78), Restrlctive Labor Practices in Seapores (PRE Working Paper WPS 514) and Developing Domestic Contractors in Road Maintenance in Africa (SSATP). Additional work is likewise underway in PRE on sub-contracting for road maintenance. To improve the attention given to the scope for private sector involvement, these initiatives need to be supplemented by more work on the scope for private financing of public transport infrastructure, together with provision of a synthesis of lessons learned and the sort of initiatives the Bank should encourage in future lending operations. IV. ISSUES SELECTED FOR SYSTEMATIC ANALYSIS 50. The Country Operations Department and the TD Directors selected two cross- cutting issues for systematic analysis In the FY91 Annual Report: (i) the poverty content of the year's lending operations and sector work; and (ii) the extent to which technology issues were systematically addressed in lending and sector work. They also asked for recommendations on how the attention given to cross-cutting issues might be strengthened in future. In the following review, poverty issues have been expanded to also cover the attention given to women in development (WID). 24 A. Poverty and Women in Development 51. The average transport project is not a good vehicle for addressing issues related to poverty and WID. Some transport projects - particularly rural roads and urban projects - nevertheless do affect these target groups, or offer opportunities for intervening to help them. With few exceptions, however, the attention given to poverty and WID in these operations was disappointing. Several road projects included initiatives to encourage labor-based construction and maintenance methods on the grounds it would increase employment and - at least in rural areas - provide employment for the rural poor. The Comoros Highway Maintenance Project included 3 man-months of consultant services to examine ways of promoting labor-based work methods, the Zaire Pilot Feeder Roads Project included pilot actions to test out labor- based methods in different parts of the country, while the Ghana Second Transport Rehabilitation Project included a pilot scheme for construction of 150 km of roads using labor-intensive methods with a target of 70 percent of the employees being women (see Box 5). The Sao Tome and Principe Multi-Project likewise included, as an appraisal criterion for sub-projects, that labor-based methods should be used to the maximum extent. Box 5. Poverty and WID Components: Ghana Second Transport Rehabilitation Project: The pilot region is generally flat and suitable for good earth or gravel roads and for use of bicycles and trailers. Single-blade roads, with 3m wide gravel/earth surface, built by labor-intensive contracting will be the main component of the scheme. Motor vehicles including small trucks can use the roads, but the main use is expected to be by non-motorized vehicles. Labor intensive methods have been proved to be about 10-15 percent cheaper in Ghana compared to equipment- intensive methods. They employ about 125 persons per contractor producing about 2 km of roads per month or about 25 km per year. The 150 km of roads under the project will be done by 2 contractors over 3 years, employing about 250 people per day for this period. The total road contract costs will be roughly US $1.5 m equivalent, of which about US$ 0.4 m will be spent on wages of unskilled labor, at a rate of about US$ 1.5 per person/day, which is slightly above the minimum wage level. It is expected that workers from each group of villages will work on the roads nearer to them, thus distributing the employment over the region. Assuming that one group will work for 3 months, there will be a total of 12 groups of 250 workers each. The total employment will thus benefit about 3,000 individual workers, each working for about 3 months. The target of 70 percent women workers would mean that about 2,100 women will benefit from the employment and eamings, each earning about US$ 145 per head. Labor surveys in the villages show that women labor willing to work on roads far exceed this number. The wage eamings will often accrue to women of the same household. The project will encourage saving part of the income, which will be further facilitated by the supply of food by the World Food Program (WFP) to cover extra food needs due to the physical work involved. 25 52. Although these initiatives should be encouraged, they also raise questions. When the work is done by force account, the Bank can use its leverage to encourage the executing agency to use labor-based methods, even when it is more expensive In financial terms. However, Is it reasonable to require cash-strapped executing agencies to use more expensive work methods, because wage rates are higher than the opportunity cost of labor? When the work is done under contract, contractors automatically use labor-based methods when it is financially cheaper (and meets the required quality standards), but have to be required by the specifications to do so when It is more expensive. Such specifications furthermore cut across the Bank's other objectives of encouraging competition and promoting technology transfer. Labor-based methods therefore only make obvious sense when they are financially cheaper (as in Ghana), or when they can be made cheaper on low-volume rural roads by lowering quality standards. The Ghana project - which sets the target of 70 percent of those employed on road construction being women - raises further questions. The SAR does not explain why it is desirable to involve women in road construction. Many of these women will already be involved in subsistence agriculture, or may be working jointly with their husbands on cash crop production. Unless there is a need to provide additional income earning opportunities for these women, involving them in road construction may simply reduce their time available for working in agriculture and for attending to their other family responsibilities. It is furthermore usually better to involve men in the building of new roads - since they can be more mobile - and to involve women in road maintenance which can be more easily combined with their home-care responsibilities. 53. Sector work carried out during FY91 dealt more effectively with poverty issues. Urban sector work in Nigeria and Uganda emphasized that a large amount of travel by poor people (at least in Africa) takes place on foot and by bicycle. Better facilities for pedestrians and cyclists would therefore make a significant contribution to improved mobility and road safety. The report on Sri Lanka discussed the desirability of targeting subsidies to ensure that they reached the user groups who would otherwise be unable to travel (e.g., schoolchildren, the elderly and the poor). The report on Madagascar described how the long distances between home, school and work "forced" people to use public transport regardless of cost and how increases In fares had to be accommodated by cutting back on other expenditures, or trips home at lunch time. The report offered no solution, other than that employers should perhaps provide their own transport services. Finally, the report on Bangladesh described a rural road maintenance program which primarily used food-for-work to employ poor people - mainly women - to undertake road maintenance. 't also included an Annex describing the impact of access on household incomes and female labor participation rates. 54. Overall, the attention given to poverty and WID issues was disappointing. When the Bank selects a new area of special emphasis, it behooves PRE to identify the issues involved and to advise regional staff on how to address them in lending 26 operations and sector work. The advice currently available to Bank staff is limited to a few working papers, including Participation of Women. In Rural Road Maintenance in Sub-Saharan Africa and Rural Roads in Sub-Saharan Africa: Lessons from Bank Experience, which have not been widely disseminated outside the Africa region. A paper on Operational Considerations for Integrating Women In Development Concems in the Transport Sector is currently being prepared by the Asia TD and INUTD is undertaking a diagnostic review of 7he Mobility Needs of the Urban Poor. This work needs to be completed and made available in a suitable form to guide Bank staff. The guidance furthermore needs to cover the following Issues: * What sort of data are needed to evaluate poverty components and what sort of gender disaggregation is needed in different contexts; * how the availability of transport services in urban areas facilitates job search and access to employment (paying particular attention to the needs of women who must often combine child-care duties with out-of-home employment); * how provision of transport services affects the way children get to school, women and children gain access to health care facilities, and the poor gain access to other public services; * the ways in which deregulation, targeted non-discriminatory subsidies, tertiary public transport and expanded competition improves the mobility of the urban poor; * the scope for using labor-based construction and maintenance techniques for small-scale rural road works and the desirability of encouraging employment of women for this work; * the impact of rural access on rural incomes, labor participation rates, provision of health care services, etc. B. Technology 55. Technology has been taken to include both information technology as well as hardware technology. All projects approved during FY91 and all sector work completed during the year have been examined in relation to the following three questions: (i) did they recommend appropriate technology; (ii) did they facilitate technology transfer, and (iii) have Bank staff advised on what is available at the cutting edge of technology. 56. This year's projects include numerous references to technology, mainly to technology transfer. The railways projects (in Tanzania and Zimbabwe) focussed on replacing obsolete equipment and introducing management information systems (MIS), while the port projects (in Pakistan and Morocco) concentrated on modernizing cargo handling equipment, training dock labor in new cargo handling technologies and improving data processing, simplifying documentation and generally supporting trade facilitation. The single inland waterway project (in Bangladesh) was more unusual: 27 it not only provided assistance to modernize navigational aids, but also provided extension services for country boat owners to improve safety and increase fuel efficiency (using appropriate technology in the form of sail-motor propulsion). Most road projects made some reference to Improving management information systems, generally in the form of pavement management systems, maintenance management systems, or equipment management systems. An urban project in China supported introduction of computerized traffic management systems, while a road project in that country provided training to local contractors to introduce them to modem construction technologies. One road project (in Sri Lanka) included a study of road building materials with a view to identifying alternative materials for use in road construction and maintenance, while another (in the Dominican Republic) Is providing training in techniques of applying surface treatments and thin asphalt concrete overlays on roads paved with bituminous materials. 57. Finally, several road projects made efforts to promote labor-based construction and maintenance and in Ghana an effort is being made to promote use of non- mrtotorized vehicles (NMVs). The initiative on NMVs builds on work started during an earlier project. Although it represents a small component, it has had a major impact on farm output and, more importantly, on attitudes towards use of NMVs by women at the local and national levels. As a result, NMVs are now being used in a variety of applications in Ghana and are even being used as ambulances to serve rural health clinics (see Box 6). 58. Sector work emphasized different aspects of technology. Some reports focussed on the traditional issues: use of natural gas as an alternative transport fuel, the desirability of using better technology for traffic management and attempting to find alternative road building materials. Most, however, addressed the issues associated with changing trade practices, the growth of inter-modal transport and the potential impact of these changes on customs and insurance procedures, the regulatory framework and transport infrastructure. The reports also showed growing awareness of the importance of information technology and the way poor information flows can hamper multi-modal transport operations. Changing trade practices point to the need for shared telecommunications networks (linking customs, shipping agents and other interested parties), revised insurance arrangements, a revised regulatory framework, improved road corridors, multi-modal transport terminals and modem equipment for handling containers. 59. The reports on Central and Eastern Europe, together with the report on the U.S.S.R. jointly authored by the Bank, also attached importance to the need to modernize trade practices. They referred to out-of-date trade practices, poor communications facilities, weak inventory management, cumbersome documentation procedures and deficient banking and insurance arrangements. These need to be urgently modernized if these countries wish to trade with western countries. The report on roads in Central and Eastern Europe also referred to outdated maintenance 28 Box 6. Support ior Non-Motorized Transport: Ghana Second Transport Rehabitaton Project The women who received trial vehicles (cycle trailers and small farm vehicles) under the Rst Transport Rehabilitation ProJect (TRP-1), have shown enthusiastic response and are willing to invest their own savings to buy them. Recently the two NGOs who bought bicycles and trailers from their eamings from data collection work for project preparation, have given them out on an instalment basis to village women. Under the pilot project, the workers are expected to contribute voluntarily to the NGO's community fund from their wage eamings (about 5 percent, in addition to the personal savings schemes where they will contribute about 20 percent); the NGOs will buy these IMT vehicles from the community funds and provide it to the villages on instalment loans. It is estimated that about 250 bicycles and trailers and about 400 small farm vehicles will be needed to provide rural transport on the new roads (unit costs, about US $100 per cycle trailer, and US $60 for small farm vehicles. Half of these needs are expected to be roet by the villagers' own savings from the road works. The other half will be provided from project funds through the NGOs (total not exceeding US $50,000), under a suitable incentive scheme related to infrastructure maintenance. While the production of trailers and small fann vehicles were done under TRP-1 through the Technology Consultancy Center in Kumasi, local commercial production is now starting in the Tamale area, and will provide these vehicles. techniques and the need for training to spread awareness of modern road design, construction anc maintenance techniques and the need to employ modern construction equipment. There is also a need to introduce cost-based planning techniques, supported by appropriate management information systems and a road database. The same comments appeared in the sector reports for the U.S.S.R. and Viet Nam, with somewhat more emphasis on the need to modernize transport equipment as well. 60. At first glance the treatment of technology issues appears satisfactory, at least in relation to the advice rendered on appropriate technology and the initiatives taken with regard to technology transfer. However, on closer inspection, the picture is less satisfactory. Much of the advice offered appears to be too general and a number of recommendations on technology, particularly those included in sector reports, do not appear well thought out. The most convincing initiatives relate to cargo handling technologies in ports, management information systems for railways and roads, and construction technology. In the case of ports, INUTD has published a technical report on Operating and Maintenance Features of Container Handling Systems and has produced a video on cargo handling methods which has been widely requested by port authorities in developing countries. In the case of railways and roads INUTD has likewise produced reports on management information systems, ModularManagement Information Systems for Railways and Information Systems for Road Management (which includes pavement management systems), and has staff (one each in railways and roads) able to advise regional staff on the application of cutting edge management information technology. The same is true of construction technology and labor-based construction and maintenance methods. The Bank still has a few technical specialists 29 able to provide advice on when labor-based technology is appropriate, how to design appropriate project components and what to do to ensure they are implemented satisfactorily. 61. In the case of trade logistics management and multi-modal transport, there are only two or three sector staff with experience in this field, even though sector work is increasingly identifying changes in cargo handling technology, together with the Information technology required to support it, as major areas requiring Bank attention. In most other areas of technology, the Bank has even less in-house expertise. There are virtually no transport staff with a detailed technical knowledge of alternative transport fuels, pollution control devices, developments in vehicle technology, electronic toll collection systems and public transport ticketing systems, or in construction materials technology. Virtually all advice on these topics has to be provided by Bank staff working in other sectors (e.g., In the industry and energy divisions), or through consultants. However, without some knowledge of technology Issues, transport staff may not know what kind of consultant to use and may also become unduly dependant on one consultant designing the project component to be carried out by another consultant under the supervision of transport staff with little knowledge of the subject matter involved. 62. The overall conclusion is that the transport sector is rapidly losing Its capacity to play a leading part in promoting appropriate technology, transfer of technology, or providing advice on what is going on at the cutting edge of technology, other than on specific topics like management information systems and cargo handling technology. Transport is an area where there have been major changes in technology during the past 10 years: in cargo handling technology, data processing and management, road design, vehicle design, signalling and navigation systems, and packaging and distribution technology. Developing countries cannot afford to ignore these developments. To do so would place them at a competitive disadvantage in international trade and impose an unnecessary burden - in both financial and environmental terms - on their economies. Since advice on technology Is central to the Bank's role as a development institution, the transport sector needs to recruit more staff with a technical background. This needs to be supported by preparation of state-of-the-art reviews and technology assessment studies. V. REFORM IN MANAGEMENT AND MAINTENANCE OF HIGHWAYS 63. It is over three years since the publication of the Bank policy paper on road deterioration in developing countries. That analysis of causes and remedies for the emergent crisis called for (a) improvement in road planning and programming, including more reliable information and management methods and the application of economic criteria, (b) strengthening and reform of institutional performance, (c) reallocation of resources to balance construction and maintenance, with increased 30 devotion of expenditures to the maintenance backlog, and (d) ways of Increasing the total road budgets and making user charges adequate. The current situation and response has been analyzed from SAR's and a staff questionnaire survey of a sample of 40 countries balanced by region and the categorization used in the policy paper. (Table 12 In the Annex lists the countries included in this review). While a more thorough analysis may reveal useful points of detail for regional attention, the following trends highlight the main Issues and status. Performance Indicators and Financing 64. Road conditions in 30 to 65 percent of countries in Asia, EMENA and LAC have improved, are unchanged in about half the African countries, but are still declining In 15-40 percent in each region, Figure 6 (a). The size of the maintenance backlog remains high, with at least 30 percent having a backlog of more than 6 years at current spending levels. The good news is that maintenance output has increased or been unchanged in nearly all the sample, Figure 6(b). 65. Maintenance expenditures increased in real terms in a half or more countries, but still fell and represented less than 30 percent of total expenditures in 10-50 percent of countries. User charge revenues covered maintenance expenditures in all but 4 countries, and covered total expenditures in 40-60 percent. Thus stronger linkages between user charges and expenditures appear necessary where these are Inadequate or falling. Availability of Highway Information 66. Objective, valid data on the characteristics, condition and utilization of the highway network are still woefully inadequate in most regions, as was experienced again in the Magreb and Central-Eastern Europe Highway surveys conducted in FY90 and FY91. The situation is changing with many current project components or country Initiatives redressing the lack with computerized data. 67. Basic invencory data are valid and complete in only 10-25 percent of countries in Africa, Asia and LAC, and 50 percent of EMENA, Figure 7 (a). In others, they are either incomplete or under development. Data on pavement condition, roughness and strength, and on traffic loading are at similar low levels for functionally valid data, but there are more countries in Africa and Asia with virtually no data, comprising 30-50 percent of the sample, Figure 7(b). 68. Project lending includes some road and traffic data collection in 50-66 percent of countries in Africa, Asia and EMENA, and all the sample in LAC. Still more attention needs to be given in highway projects to both establishing and maintaining appropriate road monitoring practices and a road database, that is, the basic Highway Information System (HIS), as well as the quality of the data and the HIS. The number of method and equipment options is expanding rapidly and becoming more sophisticated, but there is guidance on appropriate choices in the INUTD guidelines and this is being developed further. 31 Road Condition Trends AF 1A' 0 0.2 0.4 0.6 0.98 - Ineroved Unchang.d oned Figure 6(a) Maintenance Output BA AS --- LA 0 0.2 0.4 0.6 0.8 Incrased M UncMried Domoed Figure 6(b) 32 Road Inventory Bank Lending Arf 0.55 AS 0' 4 0 0.2 0.4 0.6 0.8 1 Funt iona une owl inccqiew EpNe _sctrve Figure 7(a) Pavement Roughness ~nk Lend I ng AF _0 . 68 AS - 0.SO GA ..... ..0* 0.66 LA 1.00 0 0.2 0.4 0.6 0.8 1 m F1c 1 toMi r DWl IvtlnCcapI4te COMWIctlve Figure 7(b) 33 69. Computerization has become not only desirable but also affordable for all countries at the central level. It should be considered essential in Bank project requirements because it facilitates reporting and updating, but also prompts thn agencies to review and validate the classification of the road stock. Road Management Systems and Evaluation Methods 70. Lending in the 1970s and 1980s often included maintenance management systems, introducing the monitoring of routine maintenance resources ard outputs and setting operational performance standards. Currently, only 10 percent in Africa, 30-50 percent elsewhere, have functioning routine maintenance management systems (Figure 8 (a)) and the performance of these is variable. 71. Pavement management systems for programming and budgeting maintenance and rehabilitation works, have been introduced in Bank projects since the mid-1980s and some countries have introduced them under other financing. Currently, there are comparatively few functional systems (about 10 percent of the countries in Africa and EMENA, and 25 percent elsewhere), but most have a system under development and it is a focus of Bank lending in about 70 percent of the countries, Figure 8 (b). Great care is needed that these systems are appropriate, integrated into the regular programming practice and maintained, to avoid falling into disuse like many of the early maintenance management systems. For example, the system in Niger, a sterling 1986 example of a simple effective system compatible with HDM-I1, is now needing additional strengthening because of the transfer of key personnel. Direct assistance from INUTD has been given to guiding appropriate system development in Niger, Indonesia, Yugoslavia, China and India for widely differing situations and these lessons need translation to other projects. 72. The Bank has pressed for economic evaluation techniques to be used in reaching decisions on budget levels, project priorities and programming, and the HDM model has been instrumental for this. During the past 5 years, the model was used in 60-80 percent of the sample countries. However it is part of the regular programming in only 6 of the 40 countries, and several methods for incorporating the substantive aspects in more general systems are proving satisfactory while reducing the training requirements. HDM and systems based on it remain the most powerful tool for economic evaluation, but considerably more must be done to see these advantages incorporated in regular practice. 73. Bridge management has received less attention in projects and needs to be introduced more widely. 34 Rout I ne Ma I ntenance Bank LerI ng AS C.--: ,-: =/////// // ES - ''' '' -''.',,,'''.-.,,/ // / 0.75 a 0.2 0.4 0.6 0.8 I _wictlotul muder me¢ino tr t ucuve Figure 8(a) Pavement Progrwml ng Lending AF 07 AS- 0.40 BA 0G. 0 0.2 0.4 0.6 0.3 I _FrOeM =O=w)Cml m MNone Figure 8(b) 35 Technology Issues 74. Design methods and standards for geometrics, pavements, materials and bridges are inadequate in some respects in a third or more countries. Difficulties with surface treatment practices, and in a few areas with asphalt technology, persist. Technical assistance can be provided, but longer-term solutions such as Technology Transfer (T2) centers and twinning should be tried. The provision of adequate in- country training remains a problem in about one-third of the countries. Institutional Performance 75. The strengthening of institutional performance has been reflected as a major focus of the Bank's lending over the past five years in nearly all the countries reviewed (35 of 40). The country response has been generally strong and positive in Asia and EMENA regions, but mixed in Africa and LAC regions, with a third or more taking no action. The framework designed in the SSATP program for addressing this issue is comprehensive, with some innovative features that are having a noticeable impact and worthy of application elsewhere. Impacts are highly dependent on government actions and economic factors beyond the responsibility of the highway authority, thus the involvement of senior ministry-level and departmental-level staff in the SSATP program buttressed by the development of a regional consciousness and image are factors strengthening the initial impact. 76. Monitoring the sustainability of these changes requires the means for measuring the performance, and more effort needs to be applied in projects to define and monitor statistics on staffing levels, work output and efficiency, work quality, unit costs, proportions of work by private sector, etc. Such objective measures should become routinely included in SARs. 77. About half the projects in Africa, Asia and EMENA focus on transfer of maintenance works to contract, with success in EMENA and mixed success elsewhere; in LAC both the focus in projects and successful implementation of transition are widespread. Although lending for equipment procurement is falling sharply, few projects have a focus on reducing equipment fleets. More attention needs to be given to the transition to contracting, building on lessons from the current INUTD study on maintenance by contract. Bank Staffing Implications 78. Meeting these challenges requires Bank highways staff to become better informed and more skilled in road management and information tools. Skills are needed in each region as the volume of demands cannot be met from the restricted resources in INUTD, and some regional solutions will evolve with an operational focus. Staff training, guidelines and outline terms of reference on system development or 36 Identification and implementation need to be provided, building on the experience to date. 79. Monitoring statistics need to be defined for sector performance indicators, of the road network, the agency and the funding. These should become anchor statistics in SARs, sector reviews and GORs, and essential items in the highways database. 80. Technology needs continue to exist among Borrowers and, as neglect of these can have a drastic impact on expenditures through shortening road life, operational staff need the capability for identifying problems and appropriate response, although any detailed assistance may be supplied through consultancy. 37 STATISTICAL ANNEX TABLE 1: FY 91 TRANSPORT LENDING OPERATIONS Page I of 2 Reaion Country Prolect Lendina Type of Amount, Type Project (USS million) (1) A. Dedicated Transpor Projects AFRICA Botswana Tull Block Roads 14.90 IBRO H Comoros Highway Maintenance Project 6.60 IDA H Ghana Transport Rehabilitation II 96.00 IDA M Senegal Transport Sector Secal 65.00 IDA M Tanzania Railways Restructuring 76.00 IDA R Zaire Pilot Feeder Roads 12.40 IDA H Zimbabwe Railways II 38.60 IBRD R ASIA Bangladesh Inland Water Trarnport 45.00 IDA 0 China Jiangsu Provincial Transport (2) 153.60 IBRD/IDA M Lao, P.D.R. Highway Improvement Project 45.00 IDA H Sri Lanka Roads Rehabilitation III 42.50 IDA H EMENA Pakistan Karachi Port Modemization 91.40 IBRD P Morocco Port Sector 132.00 IBRD P Turkey State and Provincial Roads Prolects 300.00 IBRD H Yemen Multi Mode Transport 30.00 IDA M LAC Dominican Rep. Fifth Road Rehabiltation Maintenance Project 79.00 IBRD H Jamaica Road Planning and Maintenance 35.00 IBRD H Total: 1263.00 of which, IBRD 790.90 62.6% IDA 472.10 37.4% Number of Dedicated Projects: Am17 |ount Number USS mifliofn Share Muni-modal 4 24% 7 309.5 25% ~Highways 8 47% 4 286.1 23% iRallways 2 12% NA 4 553.4 44% IPorts 2 12% 2 114.0 9% Urban rUes 1I6 Notes: (1): M = Multi-mode H = Highway R = Railways P = Ports 0 = Others (2): IBRD $100m and IDA $53.6m TABLE 1: FY 91 TRANSPORT LENDING OPERATION4 Pago 2± Transport Conasnent B. Projects with Transport Components % ot Base Apprx. Ama Lendina Cost of Bank L AFRICA Djibouti Second Urban Development Project 11.20 IDA Sao Tome Principe Second Mul Sector Project 6.00 IDA 35 Uganda First Utban Project 28.70 IDA 20 ASIA China Medlum SIzed CIties Development Project 168.40 IDA118RD 20 3; Uaoning Urban Infrastructure Project 77.80 IDA 11 1 India AP Cyclone Emergency 210.00 IDA/iBRO 30 6: Indonesia East Java & Ball Urban 180.30 ISRO 25 41 Sulawesilrlan Jaya UDP 100.00 ISRO 27 Yogyakorla Upland Area Dev. Prolect 2S.07 38 1 Philippines Earthquake Reconstruction 125.00 ISRO 53 61 EMENA Egypt Social Fund 140.00 IDA 25 31 Jordan Emergency Recovery 10.00 I1R0 22 : Yemen Emergency Reconstruction 33.00 IDA 38 1: LAO Argentina Public Enterprise Reform Executive 23.00 IBRO 30 4 Provincial Development 200 IBRD 30 6t Mexico Decentralization and Regional Development 350.00 IBRD 35 tZ Total Lending In US$ mnilon 1688.47 Transport Lending: 298. Number of Projects 16 C. Loans Faciltating Transport Sector Adjustment LAC Argentina Public Sector Enterprise Reform 300.00 1BRD Colombia Public Sector Reform 304.00 IBRD Table 2: THREE YEAR TRANSPORT LENDING PROGRAM BY REGION AFRICA fUsS MILLIONS) TASK Initial X OC Proiect Name MBaEPS date IBRD IDA TOA 92 ANG INPRASTRUCTURE REHAN E TANORGA 05/03/90 .0 24.4 24.4 BUR TRANSPORT SECAL MITCHELL 01/15/87 .0 56.0 56.0 CAM PILOT TRANSPORT GUILLOSSOU/JS 09/08/87 13.5 .0 13.5 ETH ROAD REHABILITATION HOLT 01/07/87 .0 85.0 85.0 GMa FEEDER ROADS NICKESEN 01/31/90 .0 55.0 55.0 MOZ ROADS & COASTAL SHIPPI ALVAREZ 05/08/90 .0 75.0 75.0 NIG TRANSPORT SECTOR II LOIR 04/17/87 .0 30.0 30.0 NIR STATE ROADS QUEIROZ 03/18/87 100.0 .0 100.0 SIL HIGHWAY REHAB PANPAJ 03/15/87 .0 20.0 20.0 SOX INFRASTRUCTURE I BEAPDNORE 03/15/88 .0 20.0 20.0 TAN ENGINEERING CREDIT BUND! 04/03/91 .0 10.0 10.0 Total for FY 92 113.5 375.4 488.9 93 GRA TRP IrI PANKAJ 11/08/91 .0 95.0 95.0 GUI TRANS & URBAN INFRA PECCOUD/JG 08/15/90 .0 45.2 45.2 IVC TRANSP SECTOR LOAN AMIOT/FUJINORI 04/11/88 100.0 .0 100.0 KEN TRANSPORT CORRIDOR BOLT 02/28/91 .0 69.0 69.0 LES INFRA NAINT ZEIJLON 01/01/91 .0 25.0 25.0 MAG TRANS.SEC.DEV BOSTROM 01/15/90 .0 77.4 77.4 NIR RAILWAYS AGARWAL 03/17/89 150.0 .0 150.0 UAN TRANSP.SECT.REHAB. GORIS 03/15/88 .0 40.0 40.0 ZAI HWY SECT. REHAB RAOUL 09/05/86 .0 43.3 43.3 Total for Ft 93 250.0 394.9 644.9 94 ANG LOBITO PORT TRANS KEDIA 04/03/90 60.0 .0 60.0 CAP TRANSP SECTOR LOIR 07/01/91 .0 10.0 10.0 CAR TRANSP SECTOR II SCHWARTZ/AM 07/15/92 .0 30.0 30.0 COB TRANSP SECTOR VERSPYCK/BP 05/15/92 30.0 .0 30.0 BQG INFRASTR.CAPACITY BUIL GM/GA 01/31/92 .0 6.7 6.7 KEN HIGHWAY SECTOR III IRGENS 08/20/92 .0 76.0 76.0 MLI INFRAS./TRANSP.SECAL PULGAR-VIDAL 04/01/88 .0 30.0 30.0 MOZ ENIERPRISE RESTRUCTURI DAFFEKN 09/01/91 .0 50.0 50.0 NIR RURAL ROADS 8HANDARI 10/22/91 .0 86.0 86.0 ZAM RAILWAYS V BURNS 09/30/91 .0 25.0 25.0 Total for FT 94 90.0 313.7 403.7 1 Table 2 contd........... ASIA tUSS MILLIONS) TASK Initial FY C Project Name ANAGER BPS date IDDA TOT 92 CHA RAILWAYS V RASHEED 09/22/88 330.0 .0 330.0 Z8EJIANG PROV TRANSPOR RAGGAMBI 05/12/89 220.0 .0 220.0 IND NAT. HIGHWAYS II BENTCHIXOU 02/19/87 266.1 .0 266.1 RAILWAY PRODUCTIVITY COVINDASSAMY 11/30/88 300.0 .0 300.0 PHL HIGHWAY MANAGEMENT PRO LONG 03/31/88 150.0 .0 150.0 SRI TRANSPORT I BRADFIELD 02/03/87 .0 35.0 35.0 VNM HIGHWAY REHAB MENCKHOFF 03/31/90 .0 100.0 100.0 THL HIGHWAY IV LE BLANC 01/23/91 87.0 .0 87.0 Total for FY 92 1343.1 135.0 1488.1 93 BAN ROAD REH. & MAIN. II THARAKAN 10/13/88 .0 75.0 75.0 JAMUNA BRIDGE MOBAREK 02/03/87 .0 105.0 105.0 ROAD FERRY IMPROVEMENT THARAXAN .0 50.0 50.0 CHA SHANGHAI PORT II PARTHASARATHI 10/12/88 200.0 .0 200.0 GUANGDONG PROV. TRANSP STARES 10/28/89 270.0 .0 270.0 RAILWAY VI WATANATADA 02/22/90 350.0 .0 350.0 SWlAN PROV. TRANSPORT LEVY 05/20/90 120.0 .0 120.0 FIJ ROADS JAMES 07/31/91 20.0 .0 20.0 INS HIGHWAY SECTOR II CROCHET 09/15/91 300.0 .0 300.0 RURAL ROADS III CROCHET 06/18/91 200.0 .0 200.0 MARITIME TRANSPORT DBV VAN DER VEI 11/02/90 70.0 .0 70.0 MAY SARAWAK ROADS LE BLANC 04/16/91 50.0 .0 50.0 NEP ROAD MAINTENANCE ASSIMAKOPOULOS 09/15/91 .0 60.0 60.0 Total for VT 93 1580.0 290.0 1870.0 94 BAN RURAL RDS STRUCTURE IM GAVIRIA 07/10/92 .0 60.0 60.0 CHA INLAND WATERWAYS VENIARD 150.0 .0 150.0 NAtIONAL HIGHWAY RAGGAMBI 200.0 .0 200.0 SHANGHAI MTP II STARES 02/22/90 200.0 .0 200.0 IND NAT. HIGHWAYS III BENTCHIKOU 12/01/91 200.0 .0 200.0 ROR RAILWAY IMPROVEMENT PR MORRELL 03/12/91 60.0 .0 60.0 LAO B'WAY IMPROVE II LE BLANC 01/01/92 .0 25.0 25.0 MAY H'WAY RENAB II LE BLANC 01/01/92 100.0 .0 100.0 NEP RURAL TRANSPORT BRADFIELD 03/15/92 .0 60.0 60.0 PHL TRANSPORT SECTOR ADJUS SCHULZ 02/01/92 150.0 .0 15C.0 MNMILA URB TRANSPORT LONG 03/01/92 120.0 .0 120.0 MARITIME SECTOR PROJ SCHIFFMAN 03/15/92 100.0 .0 100.0 THL BANGKOK REG TRNSPT. MORREL 03/01/92 100.0 .0 100.0 Total for TY 94 1380.0 145.0 1525.0 2 Table 2 contd.......... Ua IUSS MILLIONS) TASK Initial Ex CC Proiet Nane MANAER EPdate T IDA T05AL 92 E¢T RAILWAY III BEENHAR 03/31/89 200.0 .0 200.0 JOR TRANSPORT III 8ONNEY 02/05/87 15.0 .0 15.0 Total for IT 92 215.0 .0 215.0 93 RUN TRANSPORT SECTOR P. LACKSHAW 07/31/89 125.0 .0 125.0 NYC MOROCCO-RAILWAY SECT KNIGHTON 02/08/91 30.0 .0 30.0 POL INFRA. FOR EXPORTS E. VASUR 11/19/90 150.0 .0 150.0 TUN TRANSPORT SECTOR DEVEL TOLLIE 06/30/90 80.0 .0 80.0 Total for FY 93 38S.0 .0 38S.0 94 ALG HIGHWAYS VI GERALDES 02/19/88 135.0 .0 135.0 PORTS IV MAQUET 150.0 .0 150.0 IRN TRANSPORT BANERJEE 07/15/92 200.0 .0 200.0 POL TRANSPORT II B. VASUR 10/15/91 175.0 .0 175.0 ROM RURAL INFRASTRUCTURE 02/15/93 100.0 .0 100.0 TUN RURAL ROADS KNIGHTON 08/21/89 40.0 .0 40.0 YEM RURAL INFRASTRUCTURE BANERJEE 09/14189 .0 9.1 9.1 YUG HIGHWAY SEC.Iv P. PARKER 09/09/89 250.0 .0 250.0 Ttal for F! 94 1050.0 9.1 1059.1 3 Table 2 contd.......... LAC (US$ mILLIONSI TASK Initial EX C P12iect- UME MANPR BP$ dat2 IBRD DA Mm 92 BAR RD NAINT & RHB II A. MATES 03/27/87 12.0 .0 12.0 BRA STATE HWY MGNT CELLIER 04/01/88 150.0 .0 150.0 CLN NT'L HWY III MATES 11/22/89 266.0 .0 266.0 HAI RD MAINT & RHB DELVOIE 10/27/89 .0 34.3 34.3 PAR TRANSPORT UNDA 01/30/90 50.0 .0 50.0 BRA URBAN TRANSPORT HENZES/REBZLO 06/13/91 252.5 .0 252.5 Total for FT 92 730.5 34.3 764.8 93 ARG RD NAINT AUZNENDI 09/14/89 200.0 .0 200.0 BOL RD NAINT ALONSO 01/16/90 .0 48.9 48.9 BRA FEDERAL HWY CELLIER 10/18/91 250.0 .0 250.0 GUY ROAD RBB GYAMFI 06/21/91 .0 15.1 15.1 H3S TRNSPRT SCTR RHB POKORNY 08/15/91 30.0 9.1 39.1 NXC RAILWY SCTR DICK, M 07/15/91 350.0 .0 350.0 HWY RES & SAFETY PINILLA, L 05/27/91 200.0 .0 200.0 NIC INFRASTRUCTURE OHBI,K 02/15/92 .0 9.2 9.2 VEN HWY MGMT CELLIER 11/15/91 150.0 .0 150.0 Total for FY 93 1180.0 82.3 1262.3 94 BRA INFRAERO REFORM LN CELLIER/KESSIDES 10/14/91 100.0 .0 100.0 CLM FEEDER ROADS ALONSO 06/15/92 200.0 .0 200.0 ESL HOUSING OHBI 10/15/92 40.0 .0 40.0 JAM TRANSPORT SCTR FLORA 12/16/91 45.0 .0 45.0 MXC STATE HWYS PINILLA, E 06/30/88 300.0 .0 300.0 PAN TRANSPORTATION RRANAN 02/15/92 50.0 .0 50.0 Total for FY 94 735.0 .0 735.0 4 TABLE 3: PY 91 TRANSPORT SECPAR WORK etSiCA Eguv as Tite Staff x'& A. Dedicated TrunsDort Secor Stodies Aica Uganda Tnport Sector Mm Susinable Developamt and Mamtenance Priorities for the 1990s (54.3) Cote d'Ivoire Transport Sectr Review (9.7) Bude Paso Coridors do Trnsport en Afiique Sahelienne: le cas du Buddina Faso (38.) Nigena - Roads Sector Strategy Paper (2S. - Urban Transport in Cdsi (6C.1) Zaire Tran t and Trade Facilitation (46.1) SADCC SADCC Tnsport Conidors, Studies of Fianc Statgies (Vol I & ) (S5.4) Asia B desh Transport Sector Review (77.1) Si-Lank T Sew M r (W.7) Indonedsi Maritime Dego: Impact and Post-Deregulation Sta (20.9) EMENA Yugoslavia Deregulation of the Trucing ndusty (32.7) Poland Reforming the Road Preigt kIdustr (12.2) Hungyr Reforming the Road Freight Industry (9.9) Eastn Eope - Regional Study - Iue inl Ceral and Eastern European Land Trnspot (143) Highay eabilitation. and Main in Central Easen Europe: A Survey (54.4) LAC Antina, Parguy, Uuguay C e aion on the East Coast of South Amedca Colombia The Role of Transpor in International Trade (32.3) 1. Sector Work Wit Transport C bm Africa Madagawsc Urban Sector Review Mozanibique Restoring Rural Production and Trade Asia Vietm Stilization & Sruchal Reforms; Annex D Tnspot Cbina Economic Developmnts in Jangsu Province EMMA Jordan Pubic Expenditure Reviev LAC Bolivia Poverty Report Veeela Public Sector 3instmt Program Tum qsen bdwee FYM9-90. Taee Sgures em not adwyas tible, baus time p sectoa r wok is ofen chargd ageiang te activities. 2 Peseared by PRE 3 Tl wene severel other Publc Expenditu Reviews whch may hav contained ranVort cooneots. Ie tepots are clasifted as confi l and as not rnely available to PRE slfE 4 Inldes All lTnqt Modes Table 4- Time Spent on Country Specific Transport Sector Work and Regional Studies (1987-1991) numbers in staff weeks Sector Work Regional Studies Re gion Staffl Consultant! Total! Staff! Consultant Tot FY87 AFRICA 121.7 21.2 142.9 0.1 ASIA 167.0 122.4 289.4 0.1 EMENA 14.7 27.7 42.4 0.1 LAC 54.2 36.6 90.8 * 0.° PRE 18.2 21.1, 39.: Sub-Total 357.6 207.9 565.5 18.2 21.1 39.: FY88 AFRICA 21.6 18.8 40.4 0.1 ASIA 130.9 119.9 250.8 0.' EMENA 58.9 11.2 70.1 0.1 LAC 75.5 31.6 107.1 9.2 5.4 14.1 PRE 38.6 47.4 86.1 Sub-Total 286.9 181.5 468.4 47.8 52.81 100.1 FY89I AFRICA 53.0 39.0 92.0 49.8 12.91 62. ASIA 114.5 126.7 241.2 0. EMENA 71 1 45.3 116.4 0.' LAC 55.4 5.2 60.6 0.1 0. PRE 52.4 49.6 1 02. Sub-Total 294.0 216.2 510.2 102.3 62.5 164.~ FY90 AFRICA 94.2 119.6 213.8 104.3 443.3 547. ASIA 176.7 187.2 363.9 0.3 0. EMENA 27.6 7.2 34.8 0.8 0. LAC 23.8 18.9 42.7 0. PRE 141.2 77.01 218. Sub-Total 322.3 332.9 655.2 246.6 520.31 766. FY91 AFRICA 127.6 211.8 339.4 132.1 204.5 336. ASIA 159.1 114.9 274.0 53.4 39.91 93. EMENA 9.3 6.2 15.5 13.5 13. LAC 45.1 22.1 67.2 0. PRE 182.6 87.7 270. Sub-Total 341.1 355.0 696.1 381.6 332.11 713. Summary of Sector Work in percentage -__________ FY871 FY88 FY89j FY90 FYs9 Staff 63.2%1 61.3% 57.6% 49.2% 49.0% 1 Consultant 36.8% 38.7% 42.4% 50.8% 51.0% I TABLE 5: FY 91 REGIONAL STUDIES' Africa: Moeller, P.W. and M. Iacono, Human Resource and Institutional Development in The Road Sector, SSATP, November 1990. Strategy Per, Roads Sub-Sector Working Group, UNTACDA n1, December 1990. Strategy Pae, Urban Transport Working Group, UNTACDA II, December 1990. Lantran, J.M., Developing Domestic Contractors jn Road Maintenance in Afkia. SSATP, December 1990. Budin, K., Railway Strategy Paper. SSATP, April 1991. Lantran, J.M., Contract for Road Maintenance Works: Agreement for Works by Direct Labor, SSATP, April 1991. Rebelo, J.M., Preparng Multiyear Railway Investment Plans: A Profit Oriented Approach, SSATP, June 1991 Asia: A Study of the Feasibility of Employing a Floating Relocatable Maintenance and Training Facility to Improve the Maintenance of Public Sector Equipment and Infrastructure. A Regional Study Financed by UNDP, August 1990. Urban Transport in Asia: An Operational Strategy for the 1290s., Asia Technical Department, March 1991. Allport, R. and S. Tsukada, Private Financing of Urtban Transport Infrastructure in Asia, Asia Technical Department, March 1991. Tsukada, S., Urban Freight Transport: Issues and Strategies, Asia Technical Department, April 1991. This does not include conference papers. TABLE 6: FY 91 PRE POLICY AND RESEARCH University of Wales, The Management of Port Eauipmt Maintenanc, Report INU 57, August 1990 (in 2 Vols.). Douglas, R.A.P., Port Adminismdon: A Review af the Structural and Legal Asc Report INU 76, August 1990. Faiz, A., et al, Automotive Air Pollution - Issues and Options for Developing Coun ie, Working Paper, WPS 492, August 1990. Davis, J.D., et at, Environmental Considerations for Port and Harbor Devpmnts1m , Technical Paper 126, World Bank, August 1990. Paterson, W.D.O. and T. Scullion, Information for Road Management: Drt Guidelines on System Design and Data Issues, INU 77, September 1990. Harding, A.S., Restrictive Labor Practices in Seaports, Working Paper, WPS 514, October 1990. Heggie, I.G., Designing Major Policy Reform: Lessons from the Transpor Sctor, Discussion Paper 115, World Bank, January 1991. Beshers, E.L., Restrictive Labor Practices on Railways in Developing Countries, Report INU 78, January 1991. Lethbridge, J., et al The MARPOL 73178 Convention: The Economic Implications and Other Issues in Providing Reception Facilities for Ship Wastes in Sub-Saharan Africa, Report INU 80, June 1991. TABLE 7: Y91 WORKSHOPS EDI: Tzansport Policies in Megacities, Washington, May 6-10, 1991 (ointly with the Belgian govemment). Africa: National Seminar on Road Maintenance, Antananarivo, Madagascar, 10-12 October, 1990 (ointly with UNDP). Restructuring Railways in Francophone Sub-Saran Afica, Dakar, Senegal, December, 1990 (jointly with the French government). Satisfying Urban Public Transport Demands, Yaounde, Cameroon, March 5-8, 1991 (ointly with INRETS, TRANSURB and African Union of Public Transport). Human Resource and Institutional Development, six workshops during FY91 (jointly with ECA) Asia: Urban Transport Symposium, Tokyo, Japan, October 24, 1990. EMENA: Transport Policy Seminar for Central and Eastern Europe, Paris, France, 18-21 March, 1991 (jointly with the French government and EDI). TABLE 8: STAFF TRAINIMC- 1. French Experience in HIghway Sector Development, September, 17-21, 1990, Paris (for EMENA staff) 2. Urban Transport Professional Development Prog.am, Carnegie Center, Washington, December 10-14, 1990. 3. Recent Developments in Transport Modelling, Jaliuary 18, 1991. 4. Transport Engineering for Non-Engineers, in-house, March 18-22, 1990. 5. Customs Development and Trends: How to Reduce Paperwork, in-house, 20 May, 1991. 6. Ports Training Course, Barcelona, Spain, June 10-14, 1991. Table 9: OVERALL RATING OF TRANSPORT PROJECTS UNDER SUPERVISION DURING FY91 Highways Railway Ports and Transport Other Oveall l Watetways Sector Transport Africa 1.84 2.22 1.77 1.60 2.00 1 .80 Asia 1.69 1.33 1.64 1.00 2.14 1.65 EMENA 1.68 1.75 1.43 1.33 2.00 1 .S9 .LI-AC 1.74 2.00 2.40 1.67 1.25 1.79 Overall 1.74 1;79 1.74 1.48 1.73 1.72 Note: The rating reads as follows: 1. Projects experiencing no or minor problem 2. Projects experiencing moderate problem 3. Projects experiencing major problems being addressed adequately 4. Projects with experiencing proolems not addressed adequately TABLE 10: AVERAGE PERFORMANCE RATING OF TRAPPORT A4M ALL BANK PROJECTS FY91 Criterion WPrect Ratng Ixamm ARlan Project Development Objective 1.43 1.62 Compliance w/Legal Covenants 1.54 1.66 Project Mgmt. Performance 1.75 1.77 Availability of Funds 1.49 1.56 Procurement Progress 1.70 1.68 Training Progress 1.67 1.58 Technical Assistance Program 1.56 1.58 Studies Progress 1.45 1.56 Evironamental Aspects 1.07 1.25 Financial Performance 1.66 1.80 OverallAvn= L.7 L87 TABLE 11: TRANSPORT PROJECTS COMPARED TO OTHER PREQS UNER SUPRE VSION DURG FY91 Raning in terms of average rating (out of I Notes Overall Status 8 better ta agniculre, power and water upply and amaion. Project Development 2 Covenants 5 Project Management 9 better agcultue and populton Availability of Funds 6 Procurement 9 beter than agriculture and population, Training 11 Technical Assistance 7 better than agriculture, industrial development/finance, populaton and urban Studies 4 Environment 4 not applicable to 42 percent of projects Financial Performance 2 not applicable to 42 percent of projects Table 12: Countrles lncluded in Review of Road Management AFRICA: Ethiopia, Ghana, Kenya, Lesotho, Malawi, Niger, Nigeria, Swaziland, Tanzania, Zambia, Zimbabwe ASIA: Bangladesh, India (National, States), Indonesia, Korea, Laos, Malaysia, Philippines, Thailand, Sri Lanka EMENA: Algeria, Cyprus, Egypt, Hungary, Jordan, Morocco, Oman, Portugal, Tunisia, Turkey, Yemen Arab Republic, Yugoslavia LAC: Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Jamaica