Document of The World Bank FOR OFFICIAL USE ONLY Report No. 11372-GUA STAFF APPRAISAL REPORT GUYANA INFRASTRUCTURE REHABILITATION PROJECT (SEA DEFENSES AND ROADS) FEBRUARY 22, 1993 Department III Infrastructure Operations Division Latin America and the Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit - Dollar (G$) Official Exchange Rate Effective January 1, 1993 US$1.00 = G$ 125.00 WEIGHTS AND MEASURES Metric System GLOSSARY OF ABBREVIATIONS CAD - Civil Aviation Department CDB - Caribbean Development Bank GDP - Gross Domestic Product CGED - Caribbean Group for Cooperation in Economic Development CTPU - Central Transport Planning Unit EEC - European Economic Community ERP - Economic Reform Program ERR - Economic Rate of Return GAC - Guyana Airways Corporation GAHEF - Guyana Agency for Health, Environment & Food GDP - Gross Domestic Product HD - Hydraulics Division IDA - Intemation Development Association IDB - Inter-American Development Bank IMF - International Monetary Fund MOA - Ministry of Agriculture MOPWCRD - Ministry of Public Works, Communications and Regional Development O&M - Operations and Maintenance PEU - Program Executing Unit RAD - Road Administration Division THD - Transport and Harbours Department FISCAL YEAR January 1 - December 31 FOR OFFICIAL USE ONLY GUYANA INFRASTRUCTURE REHABILITATION PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. CREDIT AND PROJECT SUMMARY i I. BACKGROUND 1 A. The Setting 1 B. The Transport Sector 2 C. Transport sector Expenditures 4 D. Sector Issues 6 E. Sea Defenses 9 HI. THE PROJECT 11 A. Project Origin and Preparation 11 B. Rationale for Bank Group's Involvement 12 C. Project Objectives 13 D. Project Description 13 E. Project Costs and Financing 16 F. Project Implementation 18 G. Procurement 19 H. Disbursements 21 I. Special Account and Auditing 21 J. Economic Justification 22 K. Environmental hnpact 23 L. Project Monitoring 24 M. Project Risks 26 The report is based on findings of an appraisal mission which visited Guyana in June 1992. The mission comprised Messrs./Mme. Peter Gyamfi, Highways Advisor, Jose Maria Alonso-Biarge, Highways Engineer, and Gordon Bodeley and Monica Duquesnay, consultants. Peer review was provided by Messrs. John Flora and Malise Dick. The report was prepared under the supervision of Mr. Graham Smith and Mr. Peter Ludwig, Division Chiefs, and Mr. Yoshiaki Abe, Director, Ms. Sonia Molina, Mr. Alberto Zegada, Ms. Silvia Delgado and Ms. Ophelia Haase assisted in its production. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. TABLE OF CONTENTS (cont's) Page Ng. m. AGREEMENTS REACHED 26 IV. ANNEXES 1. Details of the Transport Sector 28 2. Road Maintenance 35 3. Adequacy of Road-User Taxation 41 4. Road Administration Division PEU 47 5. Sea Defenses 50 6. Hydraulics Division PEU 57 7. TIdal and Morphological Measurements 60 8. Environmental Assesment 62 9. Environmental Monitoring Training Program 66 10. Technical Assistance to CTPU 69 11. Creation of National Port Authority 71 12. Economic Analysis for sea Defenses 74 13. Economic Analysis for Roads 76 14. Environmental Considerations 86 15. Supervision Strategy 89 V. TABLES 1. Transport Sector Expenditures 1985-89 92 2. Sector Investment Program 1992-97 92 3. Project Outlays by Year and Agency 93 4. Project Implementation Schedule 94 5. Schedule of Credit Disbursements 95 MAP IBRD Map No. 24266 GUYANA INFRASTRUCTURE REHABILITATION PROJECT CREDIT AND PROJECT SUMMARY Boffower: The Republic of Guyana Executing Agencies: Ministry of Public Works, Communications and Regional Development and Ministry of Agriculture Credit Amoun: US$26.0 million equivalent Terms: Standard IDA Terms, with 40 years maturity Pject Qbjectives: The main objectives of the project would be to: (a) assist in the immediate repair and reconstruction of deteriorated critical sections of the sea defenses system and lay the basis for the development of efficient O&M system for sea defenses, (b) improve the overall performance and efficiency of the management and operations of the transport sector; (c) facilitate agricultural, agro-industrial and mining production, particularly for export, through reduced transport costs, both from farm to market and from market through export routes to international markets; and (d) help reduce the need for premature replacement of transport vehicles, spare parts and fuel imports and thus save scarce foreign exchange resources. Project Description: The project would consist of: (a) assistance for the repair of critical sections of the sea defenses system and the establishment of effective management of the coastal areas within the Hydraulics Division, including the design and implementation of adequate cost recovery measures to provide reliable financing for O&M of the systems as well as the establishment of a data bank for tidal and morphological measurements; (b) the rehabilitation with minor alignment and subsequent maintenance of selected high priority main roads, including the Essequibo coast road and the Linden Highway and bridges; (c) preventive maintenance by a two- year contract for about 88 miles (141km) of selected paved roads in the main network; (d) the institutional strengthening of the Ministry of Public Works, Communications and Regional Development (MOPWCRD) through technical assistance to the MOPWCRD's Central Transport Planning Unit (CTPU) for improving transport planning and project formulation and of the Road Administration Division (RAD) for the supervision of project implementation and to MOPWCRD for the study and establishment of a national port authority; and (e) purchase of office equipment, airport fire fighting equipment and all-terrain vehicles. - ii - Benefits: Cost savings to road users and avoidance of major road reconstruction costs and preservation of the sea defenses, to protect agricultural and residential areas and capital infrastructure, would be the primary benefits of the project. The estimated ERRs of the project range between 20 to 30% for the road components to about 39% for the sea defenses component. Significant benefits would also accrue from the institutional strengthening and training and research programs. Risks: There is a risk that project implementation could be delayed because of the lack of timely counterpart funding. This risk will be minimized through cofinancing arrangements with the CDB which leaves the Government to finance only US$2.0 million (6% of project costs). Also the allocation of adequate budgetary provisions on an annual basis is a condition of the credit. At negotiations, the Government confirmed its capacity to provide these funds. There is a risk that project benefits may not be fully sustained after project completion because of MOPWCRD's weak institutional capacity. The Government has undertaken to assign suitable counterparts under the project who will, after project completion, assume the key responsibilities within the implementing agencies. Furthermore, both the IDB Technical Cooperation Agreement and its on- going Road Rehabilitation Project include institutional strengthening of the RAD. Lastly, under the proposed IDA Public Administration Reform Project, the conditions would be created to make the recruitment and retention of both experienced Guyanese and new engineers easier through enhanced compensation at the engineers' level. - iii- Estimated Costs: (in|Millions of US Da at.May 19 ) ____________________________I__LocalCost: Xreign:Cot ToZ&At:Cost CIVIL WORKS: Essequibo Coast Road 1.72 6.88 8.60 Linden Highway and Bridges 1.04 4.16 5.20 Road Maintenance 0.29 1.16 1.45 Road Rehabilitation & Main. 3.04 12.21 15.25 Sea Defenses Rehabiliation 1.42 4.28 5.70 SUB-TOTAL 4.46 16.49 20.9S EQUIPMENT: Office and Vehicles 0.01 0.29 0.30 Fire and Equipment for CAD 0.10 1.90 2.00 SUB-TOTAL 0.11 2.19 2.30 CONSULTING SERVICES: Tidal and Morph. Study 0.01 0.09 0.10 Highways Finance 0.01 0.09 0.10 Off-port Container Terminal 0.01 0.19 0.20 Environmental Assessment 0.01 0.09 0.10 National Port Authority 0.01 0.29 0.30 Studies 0.05 0.75 0.80 Supervision of Construction 0.05 0.95 1.00 HD 0.15 0.85 1.00 RAD 0.15 0.85 1.00 CTPU 0.06 0.34 0.40 National Port Authority 0.02 0.18 0.20 Technical Assistance and Training 0.43 3.17 3.60 __________________________________ ----------------------------------------------------1 SUB-TOTAL 0.48 3.92 4.40 PPF 0.00 0.75 0.75 BASE COST 5.05 23.35 28.40 Physical Contingencies 0.65 2.47 3.12 Price Contingencies 0.45 2.03 2.48 TOTAL COST 6.15 :27.85 -4. - - 1v - Financina Plan: IDA Credit 4.35 | 21.65 |26.00 | 76.47| |Caribbean Development 1.15 4.85 6.00 17.65 Government of Guy'ana 0.65 _ 1.35 2.00 _5.88 Intimated4j Disbursements (i $.......... ion Annual: 0.00 4.28" 5.00 26.00 5.00 4.00 1.72 Cumulative: 0.00 4.28"p 9.28 15.28 20.28 24.28 26.00 Rate of Return The overall ERR for the investment component, above 80 of total project costs, is over 33%. The returns on the institutional development component has not been quantified, but are expected to be high. sJ Including payment of PPF and deposit to special account. I. BACKGROUND A. The Setting 1.01 Guyana, with an area of 83,000 square miles and a population of approximately 750,000, is located on the northeast coast of South America and bordered by Venezuela, Brazil, and Suriname. Economically, the country's most important region is the 270 mile long and 10-40 mile wide coastal plain which, with only 5% of the land area, contains 90% of the population and produces about 80% of the gross domestic product (GDP). Rich alluvial soil has made the sugar and rice growing coastal plain, the country's agricultural center. Much of the coastal region is, however, below high-tide level and has to be protected against flooding by dikes. Canals for drainage and irrigation crisscross the region. 1.02 Since 1988, Guyana has been implementing a medium-term Economic Recovery Program (ERP) aimed at addressing serious domestic and external imbalances in the economy and establishing the basis for renewed economic growth. The ERP has been supported by an IMF standby arrangement and an IDA Standard Adjustment Credit both of which were approved in June 1990 as well as by similar assistance from the Inter-American Development Bank (IDB), the Caribbean Development Bank (CDB), and bilateral donors. Under the ERP, Guyana has undertaken far-reaching adjustment measures and structural reforms, implying a fundamental shift in economic policies towards a market-oriented economy. The overall fiscal deficit has been reduced; the exchange and trade system has been liberalized and the exchange rate unified; virtually all price controls have been removed and consumer subsidies eliminated; the incentive framework for the private sector has improved and state intervention in agricultural, industrial, and commercial activities has been curtailed; progress has been made in restructuring and reducing the size of the public sector, including tax reform, strengthening expenditure controls and privatization of public enterprises; a shift to market-based instruments of monetary control has been initiated; arrears to multilateral and bilateral donors have been cleared; and a social impact amelioration program has been introduced. However, Guyana's existing debt service burden continues to place a major constraint on the Government's ability to address the large social and infrastructural needs of Guyana. 1.03 Guyana's economic performance improved markedly in 1991. Recorded real GDP increased by about 6 percent after four consecutive years of decline. The exchange rate stabilized during the second half of 1991, and the rate of inflation slowed to about 20 percent on an annual basis during the last four months of the year. The overall deficit of the public sector (including the Bank of Guyana) narrowed from 65 percent of GDP in 1990 to 45 percent in 1991, reflecting mainly a sharply improved performance of the Central Government and of the state enterprises and lower public investment outlays. The external current account deficit also declined, from US$148 million in 1990 to US$119 million in 1991, mainly as a result of higher export receipts, - 2 - while gross intemational reserves exceeded the program target by a substantial margin and increased to the equivalent of more than six months of merchandise imports at end- 1991. The recovery in economic activity continued during the first half of 1992 and real GDP growth for the year as a whole is expected to be about 6.5 percent. Inflation slowed further, with prices increasing by about 12 percent during the first nine mor.ths, which is broadly consistent with the revised target of 15 percent of the year. There was a significant decline in interest rates and, at the same time, private sector financial savings expanded at a much faster pace than envisaged in the program. In addition, the overall deficit of the nonfinancial public sector amounted to about 70 percent of that envisaged in the program during the first half of the year, and gross international reserves increased by a further US$19 million during the first nine months of 1992, compared with a decline of US$5 million in the program. Some progress was made in reducing external debt and debt-service obligations with the cancellation of loans amounting to US$155 million by the United States, Canada, and the Netherlands, and a debt-reduction agreement was reached with Brazil. Guyana was also able to retire its entire commercial bank debt totalling around US$93 million, including principal and past due interest, through the use of grant funds made available under the debt reduction facility for IDA countries. B. Transport Sector 1 . The Transrt System 1.04 The transport system of Guyana is concentrated in and along the sugar and rice growing areas of the coastal plain, with very little traffic to or in the interior. The main highway system, about 1610 miles long, of which 326 miles paved, lies mostly along the coast (see IBRD Map No. 24266). It is estimated that roads carry over 90% of the domestic passenger traffic and about a third of the freight. River transport accounts for about two-thirds of freight, mostly bauxite and timber and agricultural products (sugar cane), and a significant share of passengers to and from some sizable settlements in the interior accessible only by water. Transport along the coastal plain by necessity has to involve the use of ferries or speed boat to cross the many large rivers. Domestic air transport services, provided by Guyana Airways Corporation (GAC) and various private operators, are essential in reaching some remote areas where other means of transport are unavailable. The Timheri International Airport is capable of receiving aircraft up to the size of the Boeing 707. 1.05 The existing transport facilities provide adequate accessibility, in terms of spatial distribution, to all the economically and socially active parts of the country. No new investments are needed, in that respect, except if major, new agricultural or mining development takes place outside the areas currently served by the system. Also, except on very few facilities, transport flows are low and will continue to be so for at least the next ten years. Expansion for capacity or major upgrading of the system would therefore - 3 - not be economically justifiable. Practically all transport facilities are, however, at an advanced stage of deterioration due to more than a decade of little or no maintenance. Less than 20% of the road network is estimated to be in good condition; the wharves at the Georgetown port and at Linden are badly deteriorated; one of the Transport and Harbours Department's three ferries needs urgent repair and the domestic airfields are in very poor condition. The emphasis for the short and medium term therefore clearly needs to be placed on the rehabilitation and better maintenance and operation of existing facilities. Of priority, in this regard, would be those facilities that help to induce a quick supply response in the economy. A detailed presentation of the transport sector facilities and services as well as highways administration, maintenance, planning, expenditures and financing is provided in Annex 1. The issues and strategy outlined in this section are consistent with the conclusions and recommendations of the 1992 IDA Infrastructure Strategy Review Paper discussed with the Government. 2. Sector Organization and Regulation 1.06 The Ministry of Public Works, Communications and Regional Development (MOPWCRD) has overall responsibility for the planning, construction, operation and regulation of the transport sector: through its Road Administration Division (RAD) for roads, the Transport and Harbours Department (TDH) for ports, shipping and river transport, the Civil Aviation Department for airports and airfields, for regulating air transport and for licensing aircraft and pilots. The Central Transport Planning Unit (CI PU) of the MOPWCRD has the responsibility for planning and coordinating transport sector investments including integrating the investment proposals of the sector's agencies and establishes project priorities. CTPU is also responsible for proposing transport policy changes and for reviewing transport tariffs and charges. The Ministry of Agriculture (MOA) participates in the sector through the development of the feeder road system. 1.07 Organizationally, the transport sector's management is well covered, except for water transport, where the creation of a national port authority [para. 2.07, 2i(e)] , to oversee the long term development and regulation of the ports, would be desirable. All functions required to run the system are in place, but the following problems hinder its proper functioning: (a) the existing de facto decentralized responsibility for roads to the regions is ineffective since the regions have neither the resources, manpower nor technical capacity to carry out their responsibility. The reversion of responsibilities, at least for the main road network, should be undertaken immediately under the Chief Road Officer and the RAD of the MOPWCRD, who are the person and entity legally responsible for all public roads in Guyana; (b) there is excessive government involvement in the activities of the transport sector that could be carried out by private companies. For example, the recently incorporated General Construction Company Limited, the only construction company in the country capable of undertaking reasonably large projects, is, for all practical purposes, a govemment-controlled company. The river ferries are Government-owned as are two shipping companies - the Guyana Shipping Company-and Guyana Engineering Company and Guyana Airways Corporation. The Government is trying to privatize the shipping companies, but does not have a similar plan for the ferries which appear to be making some profit only because depreciation of assets are not taken into consideration. IDA is encouraging the Government to continue its efforts to privatize the revenue-earning entities in the sector, including the ferries; (c) as in all other public sector institutions, there is a high vacancy rate in MOPWCRD, due to the low salary levels and to the unavailability of qualified personnel due to high levels of emigration. For example, five of the seven technical positions within the CTPU, and 13 of 17 technical positions within RAD are vacant. Both these units have a clear understanding of their mandate but are only able to respond to the very basic needs of the Ministry. The Govemment needs to fill the vacant positions through the recruitment of local experts on better-paid, fixed- term contracts in the short term and the recruitment and training of young engineers under enhanced civil service compensation, currently being crafted by the Government. (d) the ClPU, because of its lack of staff and the relatively more powerful positions of the govemment-owned transport entities, does not have full control of its transport coordination function as the entities submit their proposals directly to the State Planning Secretariat (SPS). C. Transport Sector Expenditures Past Snding 1.08 Expenditures in the transport sector, both capital and recurrent, for the period 1985 to 1989 are shown in Table 1. Capital expenditures have showed a significant increase in 1988 and 1989 due mainly to expenditures on the Black Bush Polder Road, on bridges, particularly the Demerara Harbor Bridge, and on equipment for the Civil Aviation Department. Maintenance expenditures are not recorded separately from MOPWCRD's other recurrent expenditures. The IDB-financed Technical Cooperation Agreement is aimed at improving maintenance management including better accounting. The expenditures in the sector have been very low, at about 2.5% of total - ---- ---- public sector spending. A spending level of about 10% would be more realistic for Guyana. 2. Future Spendiny 1.09 The current highest priority needs in the transport sector, across the board, are the rehabilitation and maintenance of deteriorated infrastructure and equipment and technical assistance to carry it out. In the road subsectLr the investment priorities are: (i) rehabilitating the Georgetown - Timehri Road (about US$6.5 million); (ii) rehabilitating the stretch of road between Georgetown and Mahaica (US$8.6 million); (iii) rehabilitating the Essequibo Coast Road (US$8.6 million); (iv) resealing the Soesdyke - Linden Road and strengthening its bridges (US$5.2 million); (v) rehabilitating the West Coast Berbice Road (US$6.0 million); (vi) rehabilitating selected, high priority feeder roads and trails (US$6.0 million); (vii) rehabilitation of the Demerara River bridge; and (viii) providing technical assistance to the CTPU and to the RAD of the MOPWCRD. 1.10 Work is continuing on construction of a road, being financed by Brazil from the Brazilian border to Georgetown which has a shorter access to the sea for export products from the state of Roraima. The road is already passable from the border to the Essequibo River (about half the final distance within Guyana); from there it is to be extended to Linden. The design standards adopted for the road appear inadequate for the type of heavy trucks traffic that would be using it. Very heavy maintenance would be required. The Government would need to collect a transit tax at the Georgetown port on goods destined to be carried on the road to cover the loan payment and maintenance of the road. Moreover, the Government needs to review the environmental impact of the road's construction; potential harm to the rain forest, indigenous population and disturbance of the swamps traversed by portions of the road should be studied and mitigated. At negotiations, the Government agreed to prepare an environmental impact assessment for the road and review the results with IDA by December 31, 1993. The Guyana Association for Health, Environment and Food (GAHEF) is capable of carrying out such a study in-house with consultants' assistance. The date of June 30, 1993 was established as a limit to initiate arrangements between MOPWCRD and GAHEF to prepare the study. 1.11 In the ports and river transport subsector, the investment priorities are: (i) repair of ferries and other essential floating equipment and ferry moorings; (ii) building a container freight station in the vicinity of Georgetown Port and (iii) rehabilitating and upgrading the navigation systems in the Georgetown port and on the major rivers. 1.12 In the airrts subsector, the recommended investments are mostly related to the Timehri Intemational Airport. These are: (i) improving the communications and navigational aids to bring the airport to intemational standards; and (ii) providing crash, - 6 - fire, and rescue equipment, adequate security systems, operations and maintenance equipment, and adequate shed facilities for transit freight. 1.13 These priorities translate into the sector investment program shown in Table 2. 1.14 The proposed investments for 1992-1997, an average of about US$12 million, far exceed the US$4 million annual average spent from 1985-1989. There is no cause for alarm, however, since practically all the financing for the 1992-1997 investment program is secured. The Government intends to use expatriate technical assistance and foreign contractors to implement the program. D. Sector Issues 1. Inadequate Staffing of Sector Institutions 1.15 Staffing of the sector's agencies is weak; in most units, manpower has dwindled to the unit chief and an assistant. Improving the staffing situation, a public sector-wide problem, will require a significant increase in salaries and improvement in job satisfaction for professionals. The existing US$100 per month average salary for an engineer with 8 years of professional experience only encourages emigration. As a first step, the Government intends to increase the salaries of selected, key professional staff through the proposed IDA Public Sector Reform Project. The necessary next step, involving general salary increases for all professional staff, should be undertaken soon thereafter. The Government should also step up its recruitment and training of young professionals. The ongoing IDB-financed Technical Cooperation Agreement is assisting the Government to develop and start the implementation of a medium and long-term strategy. In the short term, the agencies will need technical assistance to carry out their functions and, especially to implement the increasing donor-funded projects in the pipeline. Such assistance should be through the engagement of qualified nationals in the private sector on fixed term contracts on terms and conditions competitive with the private sector in Guyana or through consultants, expatriate and local. The project would provide for consultants and fixed-term experts to strengthen RAD and CTPU [paras. 2.07, iii (a and c)]. At negotiations, the Government agreed to recruit the corresponding counterpart staff in RAD and CTPU under the conditions created by the proposed IDA Public Administration Reform Project, which is consistent with this project. The Minister of Finance confirmed that adequate funds would be provided in the annual budgets for this purpose. The counterpart staff would be incorporated later on as permanent staff in the respective institution. In the long-term RAD and the Hydraulics Division (HD) of the Ministry of Agriculture should recruit and train young engineers to complete the staff of these agencies. The proposed Public Administration Reform Project, through its salary restructuring, would facilitate this. Meanwhile, the project would also provide for consultants and fixed-term experts to strengthen HD (para. 2.07, - 7 - iii b). In the institutional strengthening of the agencies, the underlying objective would be to have as much work, both services and civil works, done by the private sector as possible with the agencies concentrating on planning, policy formulation and preparation and management of the contracts with the private sector. 2. Neglect of Q&M 1.16 The deteriorated state of the transport infrastructure stems from insufficient operation and maintenance (O&M) of the facilities. In addition to the staffing deficiencies noted above, inadequate operational and management systems, insufficient funding, especially of foreign exchange, and lack of accountability of the agencies are the main causes. For the Government-owned shipping companies and ferry operations, which are all revenue-earning entities, the Government should ensure that O&M is given primary priority in the entities' budgets. For the road subsector, the ongoing IDB Technical Cooperation Agreement (US$1.2 million) is expected to make a start in solving the managerial and operational problems. The funding problem is more difficult to resolve since Guyana stiUl suffers from acute financial constraints and all sectors simultaneously need enormous funds. It is unlikely that Government can allocate more than the current US$0.3 million per year for road maintenance. The donor community must therefore help in financing maintenance for at least the next four years at an estimated cost of about US$3.0 million per year for roads which are still maintainable (Annex 2). The Government should use the time to build up adequate capacity for O&M. The project will finance the maintenance of the project roads subsequent to their rehabilitation and a two-year contract for preventive maintenance for about 88 miles (140 km) of high priority paved roads, now in good or fair condition, that could significantly deteriorate if no maintenance is carried out in the next two to three years, which is the time needed to start the implementation of the maintenance programs resulting from the IDB Technical Cooperation Agreement (US$1.2 million), (see Annex 2). The Government agreed at negotiations to submit to IDA, by June 30, 1994: (a) a reliable, needs-based O&M maintenance program and budget covering the period January 1995 to December 31, 1998, the program should clearly define the mode of execution, i.e. which activities are to be carried out by private contractors and which by force account; (b) a training program for RAD staff to manage and administer maintenance both by contract and by force account; (c) a financing mechanism for road maintenance whose implementation is expected to begin January 1, 1995 (in that regard, the possibility of earmarking a sufficient portion of road-user taxes should be considered); and (d) a system to ensure the accountability of RAD for maintenance funds, including the establishment of a National Roads Fund Committee to oversee the use of the possible earmarked funds. 3. Cost Recovery in the Sector 1.17 None of the sector's revenue earning entities - the two shipping companies and TDH's ferry services - has full cost recovery; they all aim for the recovery of out of pocket costs. The roads subsector, with a total road-user charge receipt per year of - 8 - US$16.9 million, fully recovers the cost not only of the US$5 million per year currently spent on roads but would also cover adequately the estimated US$12 - 14 million needed annually for the next five years to restore the network and prevent its further deterioration (Annex 3). The Government intends to privatize the two shipping companies, as it has done with one, the former Guyana Trading Company. For the TDH ferry services, the EEC is studying TDH's finances, as part of its ferry rehabilitation assistance and will be insisting on proper cost recovery as a condition for further assistance. For the roads subsector, the problem is one of allocating a sufficient portion of the user-charge receipts for O&M. This is unlikely to happen soon with existing revenues since the Government relies on these charges which are easy to collect. On the other hand, there is some room for a surcharge on fuel which could be earmarked for O&M. The last budget included reductions in fuel taxes which could be reinstated during the next one in the form of such a surcharge. At negotiations, the Government agreed to present to IDA, no later than June 30, 1994, its arrangements for funding road O&M and has undertaken to implement the agreed program which is expected to begin January 1, 1995. 4. Ineffective Highways Administration and Maintenance 1.18 Highway administration has since 1985 been carried out by the RAD and the regional authorities. RAD's role has been restricted to the overall development of the main network and to advisory and technical support to the regions, while the regions have been carrying out whatever improvement, rehabilitation and maintenance of the roads in their regions. The regional authorities have neither the technical capacity nor resources to perform their functions. On the other hand, RAD which still has some capacity (4 professional-level staff) has practically nothing to do since there has been virtually no road development over the past decade. The maintenance funds allocated to the regional authorities are not only insufficient, but also not necessarily spent on maintenance. Moreover those regions which try to execute maintenance are hampered by lack of technical capacity and equipment. In fact, one of the regions has over the past three years handed back its maintenance to the RAD which carries it out using small local contractors. Because it has been performing no maintenance or construction responsibilities, RAD has practically no road equipment; its few pieces date back to pre- regionalization days and have been poorly maintained. RAD has moreover given up the supporting services for preparing, implementing and monitoring road maintenance programs. 1.19 The Government needs to strengthen RAD to carry out the development, administration and maintenance of the main roads; maintenance of feeder roads and trails should remain under the regions. Currently, 13 out of its 17 authorized positions remain vacant and the 4 staff on board are totally demotivated due to low salaries, absence of any professionally-challenging assignments and lack of future career prospects. The IDB, through its Technical Cooperation Agreement, is providing technical assistance to, inter alia prepare detailed functions for RAD and assist in strengthening it. Bringing the - 9 - RAD to its required institutional strength would take at least seven to ten years. The proposed salary restructuring in the public sector under the proposed IDA-financed Public Administration Reform Project, which would significantly raise engineer's salaries, would help in retaining the existing staff and in recruiting young engineers to man RAD in the long-term. The Technical Cooperation Agreement is also helping to prepare a maintenance program and strategy. The IDB intends to subsequently assist the Government, through a follow-up project to carry out this program and strategy. In the meantime, RAD would need extensive technical support to implement the IDB and proposed IDA projects and private contractors to maintain the main network. As a start, the IDA PPF provided a technical assistance (1 engineer and road administration expert) to assist it in supervising consultants' detailed engineering and bid preparation and, in contract administration for maintenance works to be contracted out. The project will provide for technical assistance to RAD to supervise the project roads. To strengthen RAD itself would require the hiring and retention of qualified staff. With the improvement in the country's economic and political situation the return of qualified Guyanese engineers and economists has picked up as has the potential for filling RAD's vacancies. Such personnel can, however, only be successfully recruited under compensation arrangements competitive with the local private market. The project will assist the Government in staffing a Program Executive Unit (PEU), within RAD, to carry out the road rehabilitation program to be financed by IDA and IDB. The establishment of this PEU will be a condition for credit effectiveness. At negotiations, the Government agreed to assign to the PEU the duties and counterpart staff outlined in Annex 4, not later than September 30, 1993. E. Sea Defenses 1.20 Guyana's coastline of 430 km, which generally lies from 0.5 to 1 m below sea level, is protected by a sea defenses system totalling some 340 km, of which about 107 km are concrete walls, 153 km are a mangrove belt backed up by an earth embankment, and 80 km of natural sand banks. Over 90% of the concrete walls, built between 25 to 50 years ago, not rehabilitated since and poorly maintained, have severely deteriorated and are experiencing frequent breaches, leading to flooding and increased salination of the coastal areas. A recent EEC-financed study by consultants DHV (Holland) found that 36 km of the concrete sea walls are in a seriously deteriorated state and require maintenance promptly, another 71 km of the concrete walls would need only rehabilitation within the next decade, if they were maintained properly, and the remaining 233 km, consisting of earth dams protected on the seaward side by a substantial depth of mangrove and natural sand banks, are in relatively good shape and could last the next 20 years with proper maintenance. Out of the 36 km, which need emergency works, approximately 30 km will be repaired with EEC, IDB and CDB financing and about 4 km with IDA financing under the proposed Project. Annex 5 contains more detailed information on sea defense conditions and proposed rehabilitation. For the remaining sea defenses, the Government intends to undertake selective rehabilitation as it becomes - 10 - necessary. Part of HD's institutional development, to be financed by the EEC, would be aimed at developing the planning capacity within the HD to identify these sections. 1. Institutional Arrangements for Sea Defenses 1.21 Responsibility for the construction, management and maintenance of the sea defenses rests, under the Sea Defense Act of 1982 and the Transfer Act in 1988, with the regional democratic authorities. The Act also provides for the re-establishment of the Guyana National Sea and River Defenses Board to oversee all matters concerning sea defenses, but the Board has not yet been established due to the recent change of Government. The HD of the Ministry of Agriculture has, since January 1990 been assigned responsibility for the design and construction program on all sea defenses. The maintenance responsibility, however, continues to be with the regions. 1.22 The regional authorities have neither the funds nor, what is more important, the staff capacity to carry out their responsibilities properly. Nor is it likely that they will be able to attract the necessary qualified staff to do so. The responsibility for managing and maintaining the coastal areas needs to be re-centralized within the HD. At the same time, HD does not currently have sufficient capacity to manage, including design and supervision, the upcoming large sea defenses activity in Guyana (about US$42 million within the next four years). HD basically consists of a Chief, Deputy Chief and Senior Hydraulics engineer who are also responsible for drainage activities in the coastal areas and national parks. HD will therefore have to carry out all rehabilitation and maintenance by private contractors and design and works supervision by consultants. HD will need to strengthen itself to manage the consultants' and contractors' activities. The project would assist the Government to staff within HD a Program Executing Unit (PEU) to carry out the sea defenses program being or to be financed by the IDB, CDB, EEC and IDA and to recruit staff or consultants for it. The establishment of the PEU in HD and appointment of a coordinator is a condition for credit effectiveness. At negotiations, the Government agreed to assign to the PEU the duties and counterpart staff outlined in Annex 6 and to provide the necessary funds (about US$300,000 per year) in the budget to operate the unit. 2. Cost Recovery for Sea Defenses 1.23 The limited government financing for sea defenses comes in the form of treasury allocations to the regional councils and to HD. There is no specific cost recovery mechanism for sea defenses. The government's argument has been that, with over 90% of the population benefitting from sea defenses, the beneficiaries encompass the total population and a user tax would be essentially equivalent to a general tax. There is a strong case, however, for a separate graduated sea defenses tax, even if it were in the form of a general tax with the receipts earmarked for sea defenses operation and maintenance. Such a tax cannot, however, be put into effect now, given the already low incomes in Guyana. Donor agencies would therefore have to finance all the rehabilitation and maintenance works for at least the next three years while the - 11 - Government is putting in place such a tax. As part of the preparation of the project, the Government has engaged an expert to study the cost recovery and financing of sea defenses. The results of the study are expected to be ready by end-March 1993. In the longer term, the Government should seriously consider setting up an autonomous agency with the power for cost recovery to manage sea defenses. At negotiations, it was agreed that the Government will submit to IDA, not later than September 30, 1993, the results of the cost recovery study and will propose a plan of action for the implementation of the agreed recommendations by June 30, 1994. The implementation of the agreed plan is expected to begin January 1, 1995. 3. Expenditures on Sea Defenses 1.24 Very little funds were spent on sea defenses during the period 1980 to 1987. Since 1987, the EEC, as part of its Lome III grant, has spent about US$5 million on materials, equipment and technical assistance for emergency repairs of sea defenses, the DHV study and training for HD staff and local contractors. The DHV study recommends an investment program of US$28 million between 1993 to 1996, with some US$4 million in 1993 and US$8 million annually thereafter to protect the area. The economic rate of return of such a program would be over 70%. Funding for the program has almost been committed with US$14.8 million and US$4.1 million loans granted by the IDB and CDB and with EEC and IDA considering, between them, more than US$20 million, including funds for maintenance for at least the next four years and research. HI. THE PROJECT A. Project Origin and Preparation 2.01 In January 1991, an IDA mission visited Guyana, at the request of the Government, to assist in identifying key investments needed to generate a supply response to its ERP and to prepare project profiles for the selected projects for presentation to the Donor Community at the Consultative Group Meeting for Guyana held in Paris in June 1991. The mission also reviewed the management and operations of the transport and sea defenses sectors and, was requested by Government, following discussions with the SPS, the Ministry of Finance and MOPWCRD, to consider IDA's project assistance in key areas in which IDA would have a comparative advantage in assisting Guyana in the sectors. These recommendations took into consideration the ongoing or planned activities of other donors, mainly the EEC, the IDB and the CDB. After the first preparation mission in September 1991, the Association granted a Project Preparation Facility in the amount of US$750,000 to the Government for consulting services to study and carry out detailed engineering of the components of the project. - 12 - 2.02 Originally, the project was expected to include also assistance for the rehabilitation of the Demerara River bridge, replacing the engine of one of TDH's ferry boats, rehabilitation of moorings and the creation of an off-port container park. The first three elements were later eliminated because the EEC, which had been assisting the Government with them was able to mobilize the necessary resources to finance them on its own. The creation of the off-port container park was removed from the project because port operators had in the mean time improved their container capacity at the wharves, and the potential complications concerning appropriation of property, passing enabling legislation and managing the facility, in the absence of a national port authority, became clearer. It was agreed with the Government to defer such assistance for a possible future project, but to include the technical, economic and financial feasibility studies and detailed engineering, if it proved feasible, in the project. 2.03 The detailed engineering of the selected roads has been substantially completed. The finalization of this work and the completion of detailed engineering for sea defenses, being carried out by consultants with financing under the PPF, are expected by mid-May 1993. The Government is also studying the cost recovery and a financing mechanism for sea defenses. 2.04 During project preparation an IDA Infrastructure Review mission visited Guyana in 1992. That mission's findings and recommended strategy for infrastructure are incorporated into the design of the project. The preparation also benefitted from two donors' meetings in Guyana in 1992 on a common strategy for sea defenses. Lastly, the recommendations of the project on compensation for MOPWCRD and HD staff are consistent with those of the proposed IDA Public Administration Reform Project, which is expected to be shortly presented to the Board. B. Rationale for the Bank Group's Involvement 2.05 The main elements of the Bank Group's assistance strategy, over the medium term, are aimed at the continuation of the Economic Recovery Program which includes: (a) facilitating the development of the private sector as the principal engine of economic growth; (b) supporting the Government's divestment and rehabilitation efforts in the key productive sectors of the economy (bauxite and sugar) with a view to arresting a further decline in output and to improve the overall performance of both sectors; (c) assisting in the rehabilitation of the basic social and economic infrastructure; (d) implementing an economic and sector work program to support the Government's ERP and to enhance the role of the private sector in the economy, notably in the development of non-traditional exports; and (e) through the Caribbean Group for Cooperation in Economic Development (CGCED), assisting Guyana in its efforts to mobilize the resources needed in external financing in the form of both balance of payments support and new investments to facilitate the implementation of the Government's Public Sector Investment Program (PSIP). The project will ensure that - 13 - the economic infrastructure needed to support the supply response underlying the ERP's goals is in place by: (a) helping to repair critical sections of the sea defenses system, which supports agricultural production, as well as introducing effective coastal area management, (b) rehabilitating and maintaining critical components of the transport infrastructure which are necessary for the efficient delivery of farm and mining inputs and for the evacuation of the country's principal exports, bauxite, sugar and rice, and (c) improving the management and operational efficiency of transport sector agencies. Although the Bank Group has not made any loans to Guyana's sea defenses and transport sector for some time now, the Bank Group's past experience in Guyana's sea defenses and its leadership in the area of road maintenance places it in a good position to offer assistance and guidance to Guyana. Also, the project is expected to play a catalytic role in helping to attract additional donor assistance in cofinancing for further critical investments in the sector and provide a framework for coordinating such assistance. C. Project Objectives 2.06 The main objectives of the project would be to: (a) assist in the immediate repair and reconstruction of deteriorated critical sections of the sea defenses system and lay the basis for the development of an efficient O&M system for sea defenses, (b) to initiate improvements in the overall performance and efficiency of the management and operations of the transport sector; (c) facilitate agricultural, agro-industrial and mining production, particularly for export, through reduced transport costs, both from farm to market and from market through export routes to international markets; and (d) help reduce the need for premature replacement of transport vehicles, spare parts and fuel imports and thus save scarce foreign exchange resources. These objectives aim at implementing a medium-term infrastructure strategy necessary to support a supply response in the economy to the ERP. It is fully recognized that other issues exist in the sector which will not be addressed by the project, but over the long-term and through other instruments. D. Project Description 2.07 The project consists of: (a) rehabilitation and subsequent maintenance of about 4 km of critical sections of the sea defenses system and the establishment of effective management of the coastal areas within the Hydraulics Division, including the design and implementation of adequate cost recovery measures to provide reliable financing for O&M of the systems as well as the establishment of a data bank on tidal and morphological measurements; (b) the rehabilitation with minor alignment and subsequent maintenance, on a limited basis, of the Essequibo coast road and the Linden Highway and bridges; (c) preventive maintenance of selected high priority roads; and (d) the institutional strengthening of MOPWCRD through technical assistance to the CIPU for improving transport planning, project formulation and monitoring of potential - 14 - environmental impacts, the RAD for the supervision of road rehabilitation and the THD for ports management. The project will also finance technical and economic studies for the creation of an off-port container terminal, a study for the establishment of a National Port Authority, an environmental assessment of the Brazil-Guyana road, a study of highways subsector financing and the purchase of equipment including fire-fighting equipment for the Timehri Airport all-terrain vehicles and office equipment. 1 . Civil Works (i) Sea Defenses: the reconstruction and subsequent maintenance of sections of sea defenses totalling 4 km between the Demerara and Mahaicony rivers, which need emergency works. The exact sections, design methodology and standards are included in Annex 5; (ii) The Essequibo Coast Road (60 Km): the construction and paving of the Supemaam - Adventure section (13 km); resurfacing, with minor alignment, of the Adventure - Anna Regina section (22 km), and replacement of pavement and construction of new shoulders for the Anna Regina - Charity section (25 km), including the reconstruction of bridges and subsequent maintenance for four years; (iii) The Linden Highway: the reconstruction of about 4 km of deteriorated sections of the road, the resealing of the remaining 65 km and the replacement of the wooden decks of 8 bridges with concrete structures and subsequent maintenance of the above for four years; and (iv) Preventive Maintenance: the preventive maintenance of selected high priority roads (141 km) not included in the IDB or CDB projects and now in good or fair condition that could significantly deteriorate if no maintenance is carried out in the next two to three years, which is the time needed to start the implementation of the maintenance programs resulting from the IDB Technical Cooperation Agreement (US$1.2 million). (Annex 2) 2. Consulting Services (i) Studies (a) establishment of a data bank on tidal and morphological measurements along the Guyana coastline, as a first step of a study, the balance of which is to be financed by IDB under the forthcoming coastal zone management program (Annex 7); - 15 - (b) a study of highways subsector financing; (c) technical, economic and financial studies for the creation of an off- port container terminal; (d) an environmental impact assessment of the Guyana-Brazil road (Annex 8); and (e) a study for the establishment of a national port authority. All these studies should be completed at project mid-term review in line with paras. 2.29 and 3.01 and the project implementation schedule detailed in Tables 3 and 4. (ii) Engineering Services (a) engineering design of about 4 km of sea defenses; and (b) construction supervision for all the civil works financed under the project. (iii) Institutional Strengthening and Development Services (a) technical assistance (about 96 man-months) to the RAD for managing the implementation of road projects (scope and outline terms of reference in Annex 4); (b) technical assistance (about 96 man-months) to the HD for managing the implementation of the 1993-1996 sea defenses rehabilitation program (scope and outline terms of reference in Annex 6); (c) technical assistance (about 30 man-months) to the CTPU to strengthen (i) transport planning and policy formulation, including the establishment of a transport data bank and carrying out of specific studies; and (ii) the incorporation of environmental considerations in the planning, design, construction and maintenance of transport facilities and training of CTPU staff through both in-house and overseas courses (outline scope of services in Annexes 9 and 10); and - 16 - (d) technical assistance (24 man-months) to assist the Ministry of Public Works, Communications and Regional Development in establishing a National Port Authority (Annex 11). 3. Equipment (a) Provision of necessary office equipment (desk-top computers and appropriate printers, photocopy machines) and two all-terrain vehicles each for the CTPU, RAD and HD for project/program management; and (b) provision of fire fighting equipment (two fire trucks and an initial stock of movable spare parts) for the Civil Aviation Department (CAD). E. Project Costs and Financing 2.08 The total project cost, net of taxes and duties, including US$3.12 million in physical contingencies and US$2.48 million in price contingencies, amounts to US$34.0 million with a total foreign exchange component (FEC) of some US$27.8 million (82%). Price contingencies have been determined on the basis of estimated price increases of 3.9 % for 1993 and 1994, and 3.8% for 1995-96. The project cost summary is shown in the following page, and in Table 3 by year and financing agency. 2.09 The cost estimates for sea defenses and road rehabilitation, improvement and works are based on quantity estimates and unit prices from engineering studies financed by the EEC, current unit prices on similar works being financed by IDB and cost estimates from contractors in neighboring countries. The costs of engineering and consulting services are based on MOPWCRD's experience in contracting for similar services financed by the PPF. The cost of studies, technical assistance and training was estimated by detailed costing of all elements using man-month rates for consultants comparable to those incurred during project preparation. To estimate the FEC of civil works, equipment and imported materials components, recent civil works contracts in Guyana have been used. The FEC for consulting services was estimated assuming that supervision contracts and technical assistance and studies would normally be awarded to foreign firms or a joint venture of foreign and local firms. For goods to be procured under the project, the FEC has been estimated at 90%, based on the CIF prices at port of entry into Guyana and free of import duties and sales tax. Physical contingencies of 10% of the cost of civil works have been provided. - 17 - Projelct cost (in Milions f US DolUr at 1 p - _-:-_ | Lo-a- Cost. :Foreig Cost Tot-: Cost CIVIL WORKS: Essequibo Coast Road 1.72 6.88 8.60 Linden Highway and Bridges 1.04 4.16 5.20 Road Maintenance 0.29 1.16 1.45 Road Rehabilitation & Main. 3.04 12.21 15.25 Sea Defenses Rehabiliation 1.42 4.28 5.70 SUB-TOTAL 4.46 16.49 20.95 EQUIPMENT: Office and Vehicles 0.01 0.29 0.30 Fire and Equipment for CAD 0.10 1.9 2.00 SUB-TOTAL 0.11 2.19 2.30 CONSULTING SERVICES: Tidal and Morph. 0.01 0.09 0.10 Highways Finance 0.01 0.09 0.10 Off-port Container Terminal 0.01 0.19 0.20 Environmental Assessment 0.01 0.09 0.10 National Port Authority 0.01 0.29 0.30 Studies 0.05 0.75 0.80 Supervision of Construction 0.05 0.95 1.00 HD 0.15 0.85 1.00 RAD 0.15 0.85 1.00 CTPU 0.06 0.34 0.40 National Port Authority 0.02 0.18 0.20 Technical Assistance and Training 0.43 3.17 3.60 SUB-TOTAL 0.48 3.92 4.40 PPF 0.00 0.75 0.75 BASE COST 5.05 23.35 28.40 Physical Contingencies 0.65 2.47 3.12 Price Contingencies 0.45 2.03 2.48 TOTAL COST 6.15 27.85 34.00 - 18 - 2.10 The IDA credit of US$26.0 million will finance 76.5% of the project cost; the CDB will finance US$6.0 million (17.6%) for the Linden Highway and Bridges; and the Government of Guyana the remaining US$2.0 million (5.9%). Although not included as a part of the project, MOPWCRD is receiving a Technical Cooperation Grant of US$1.2 million from the IDB for consulting services for institutional strengthening of RAD and for developing a maintenance program and strategy. IDB is also financing the rehabilitation of two main road sections and of 1,000 km. of minor roads and trails. During the negotiations the Government agreed to provide the US$2.0 million project counterpart funds (an average of US$300,000 per year). The specific amounts for each year of project implementation will be agreed during the annual project implementation reviews, depending on the funds required to continue project implementation. F. Project Implementation 2.11 Execution of the transport sector components of the project would be the responsibility of MOPWCRD. The RAD would manage the contracting of road civil works, related consulting engineering services for construction supervision and the consulting services for its portion of technical assistance. A Program Executing Unit (PEU) will be established in RAD to implement the road components of the project. The composition and functions of the Unit are included in Annex 4. MOPWCRD would also be responsible for procurement of office equipment and vehicles for CTPU and RAD and fire fighting equipment for the CAD. The Ministry of Agriculture, through its HD, will be responsible for the implementation of the sea defenses components of the project. A special PEU will be established within HD for that purpose and for the implementation of the IDB, CDB and EEC sea defenses projects. The composition and functions of the Unit are included in Annex 6. The establishment of the above PEUs for roads and sea defenses and naming of coordinators will be a condition of credit effectiveness (see paras. 1.19 and 1.22). The project will finance four posts in each PEU (RAD and HD): the Coordinator, Financial Controller, Civil Engineer and Contract/Procurement Specialist. The remaining staff and operating costs, including administration office and general running costs will be financed by IDB (in the case of RAD), the EEC (in the case of HD) and the Government. Not later than September 30, 1993, the Government will also recruit, with the salary scheme to be implemented under the proposed Public Administration Reform Project, the corresponding counterpart staff who will be incorporated later on as permanent staff in RAD and HD respectively. It is expected that as the reforms under the Public Administration Reform Project have an impact on recruitment and retention of staff, the functions of the PEUs will be transferred to Government staff. The arrangements and schedule for this transition are to be agreed at the mid-term project review. The project will also provide for the services of a procurement agency to assist in the procurement of fire fighting equipment. - 19 - G. Procurement 2.12 Procurement will be carried out in accordance with the Bank Group "Guidelines for Procurement under IBRD Loans and IDA Credits, May 1992". The selection and appointment of consultants for studies and technical assistance will be consistent with the August 1981 'Guidelines: Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency." The Guyana's public procurement procedures are generally consistent with the Bank guidelines. 2.13 Works. TIl civil works components (covering sea defenses as well as road rehabilitation and maintenance) include contracts for US$25.9 million (only 19.5 with IDA financing). Civil works contracts for road rehabilitation are estimated to cost US$17.1 million (only 10.7 with IDA ninancing) and for road maintenance US$1.80 million. Sea defenses rehabilitation is estimated to cost US$7.00 million. Contracts for sea defenses and road rehabilitation and maintenance valued at US$1.0 million each or above will be awarded through international competitive bidding (ICB) and when valued below the US$1.0 million limit, if not in excess of US$2.0 million equivalent in aggregate, will be awarded through local competitive bidding (LCB) procedures acceptable to IDA. 2.14 Equigment. Materials and Goods. Fire fighting equipment will be procured through LIB, given the highly specialized nature and relative low value of this equipment. All-terrain vehicles to be imported and financed under the project will be procured through LIB among established dealers in Guyana. Office equipment, parts and materials will be grouped in packages valued at above US$100,000 and procured through ICB. However, small groups of items costing less than US$25,000 and not exceeding US$0.55 million in aggregate, may be procured on the basis of price quotations obtained from at least three suppliers. For the purpose of bid evaluation under ICB, goods manufactured in countries belonging to the Caribbean Community (CARICOM), including Guyana, may be granted a margin of preference in accordance with Bank procurement guidelines. A summary of procurement arrangements is presented in the Table in the following page. The project will be completed in about six years in accordance with the project implementation schedule presented in Table 4. Both the schedule and above arrangements for the management of project procurement implementation were reviewed and confirmed during negotiations. 2.15 IDA will review ex-ante all procurement documentation under ICB and LIB procedures as well as LCB documents for work contracts estimated to cost above US$500,000 equivalent. LCB documents for work contracts valued US$500,000 equivalent or below, will be subject to ex-post-review by IDA. All other procurement documentation will be retained by SNC and subject to selective ex-post review by IDA. Under these procedures IDA's prior review will cover more than 80% of total contract values. - 20 - Summary of Procurement Arrangemnent (US$ Million equivalent) a/ Pt 'roject Cospoo4Nlt WB LOU O;0 0 000 02 t~t N000C1000 00 _ . . ~~~~~~~~~~ . .. ...... Year Fnnca Economic 1 1.48 1.18 5.1 2 4.44 3.56 1.3 3 1.48 1.18 0.4 4 0.6 5 _ _ _ _ _ _ _ _ _1.3 6 0.3 7 0.3 8 0.3 9 0.3 10 0.3 Economic Rate of Return - 26.5% - 76 - ANNEX 13 GUYANA INFRASTRUCTURE REHABILITATION PROJECT ECONOMIC ANALYSIS FOR ROADS I. Essequibo Coast Road 1. The Essequibo Coast Road is one of the most important roads in Guyana. Its area of influence includes major rice, fruit and vegetable - producing areas which account for about 80,000 tons of paddy, about 30% of the country's total annual rice production, and some 7,000 tons of fruits and vegetables. 2. The existing road can be divided into three distinct sections based on road characteristics and traffic as follows: (a) Supenaam - Adventure (14.2km) with a ADT of about 440 vpd, with poor condition of the existing road (about 6 km impaired and the remainder with total pavement loss); (b) Adventure - Anna Regina (19.4km) with an average ADT of about 1080 vpd, with poor to fair condition of the existing road; and (c) Anna Regina - Charity (24.9km) with an average ADT of about 250 vpd and very deteriorated road pavement. 3. The construction costs used in the economic analysis are based on detailed cost estimates produced by Crown Agents and Partners from the detailed engineering studies for the road during September - December 1992. The following costs have been in the analysis: Road Section Economic Costs Supenaam - Adventure US$1.8 million Adventure - Anna Regina US$4.0 million Anna Regina - Charity US$2.8 million Total US$8.6 million - 77 - The above costs include the base cost estimates as of December 1992, a physical contingency of 10% and construction supervision of 6%. The economic costs are estimated as the financial costs less taxes. 4. The benefits used in the economic afalysis have been taken as the reduction in vehicle operating costs resulting from road rehabilitation. Savings in accident costs and time have not been included in the benefits which should therefore be considered under- estimated. 5. Estimates of current traffic are based on counts conducted by RAD in 1990 and more recent counts in 1992 by Consultants, Crown Agents and Partners. The results are shown in Table A13.1. 6. Traffic growth, from both normal growth in economic activity and from generated traffic, has been estimated by Crown Agents based on projections of economic development in the area and the input of the road improvement/rehabilitation. In general, the following growth rates have been forecasted: Viehicle lIe Growqth Passenger cars 6.7 Light vehicles 5.6 Trucks 3.2 Tractors 2.9 Buses 0.7 7. The vehicle operating costs used in the analysis were developed from the Hire Vehicle operating cost model, but using applicable representative vehicles and units costs in Guyana. Table A. 13.2 shows the elements of costs for the various vehicle classes. 8. The maintenance costs in the 'without" project case covers routine maintenance and twice-yearly grading on the unpaved sections, and routine maintenance and patching on the paved stretches. In the 'with' project case, the maintenance policy includes routine maintenance, annual patching and resurfacing. The HDM m model has been used to determine the optimum maintenance strategy in such a case. 9. For the evaluation of the economic feasibility of the proposed road improvements, a comparison has been made for the total costs - road rehabilitation and maintenance and vehicle operating costs - between the "with" 'without" project scenarios using the HDM III model. The results, presented in Table A. 13.3 indicates that the proposed road rehabilitation would yield an economic rate of return of 29.5%. - 78 - II. The Soesdyke - Linden Road (43.7-khn) 1. The Linden Highway links the Linden, the bauxite mining town with Georgetown, the capital city as well as providing access to the interior of the country. The road has 9 major bridges with concrete sub-structure; 8 of them have timber decks. The existing road, a two-way single carriageway with asphalt pavement on 22 feet and sand asphalt shoulders of 5 feet, remains in generally good condition although areas of distress - fatigue cracking, thermal cracking, rutting and distortion and circular depression - have been identified. 2. The surfacing of the bridges is extremely damaged, with many potholes and significant cracks. The parapets are generally very decayed with many support bolts either heavily corroded or missing. 3. A feasibility, conducted by consultants Roughton and Partners (UK), for rehabilitating the bridge abutments, replacing the wooden decks with reinforced concrete slabs and repairing and resealing the damaged road sections, is included in Project file No. 3. The following is a summary of the salient points. 4. For the analysis the road has been divided into two sections based both on the differences in traffic as well as road conditions as follows: (a) Soesdyke - Kurukuru (16 km) with a traffic of 966 vpd with local failures, corrugations and distress; and (b) Kurukuru - Linden (38 km) with a traffic of 754 vpd, with a relatively sound road surface. The bridges have been evaluated as an integral part of the road. 5. The construction costs of the "with" project scenario have been estimated by Consultants Roughton and Partners based on detailed quantities and costs for the proposed road and bridge works. Both financial and economic costs have been estimated by consultants. 6. The road and bridge maintenance costs for the "without" project scenario have been based on routine bridge and road maintenance. For the "with" project scenario, consultants have based the maintenance costs for bridges on Guyanese and other experience and for the roads sections on the HDM III policies. 7. Traffic estimates for the road was carried out by both the MOPWCRD and Roughton and Partners and are shown in Table A13.4. 8. Traffic Grwth for the road has been estimated taking into consideration the expected future traffic from Brazil with the completion of the Brazilian Road. - 79 - 9. The Vehicle Operating Costs used in the analysis were based on the HDM Vehicle Operating Cost Model , but using applicable representative vehicles and unit costs in Guyana. Table A13.5 shows representatives values for various vehicle classes. 10. For the evaluation of the economic feasibility of the proposed road and bridge works, a comparison has been made for the total costs between the "with' and "without" project scenarios using the HDM m Model. The results, presented in A13.6, indicate that the proposed road and bridge works would yield a rate of return of 18.7% over the 12-year life of the /investments. GUYANA Essuibo Coast Road AADT for Im VEHICLE TYPE CAR LCV UGHT M-H TRACTOR MINIBUS AADT TRUCK TRUCK station __ Darbmouth 48 26 24 22 68 70 258 Annae gina 604 155 43 90 177 302 1,371 Abraham Zuil 243 153 52 158 206 165 977 A4v. (to Au Rina) 351 5240 56 142 58 126 785 0 Adv. Cro S'naam) 323 40 46 133 56 107 705 Adv.(toFerry) 1158 I 66 j 62 60 22 I 4661 X X4 I->z I (A ANNEX 13 - 81 - Table Al. GUYANA E_ouiho Coast Road Elements of Vehicle Operations Cost (G$ at 120 = 1US$) VEHICLE TYPE CAR LIGHT LIGHT MED-HEAVY MINIBUS COMMERCIAL TRUCK TRUCK Tyre Price (a) Financial 7055 7170 9010 29775 7170 Economic 5125 5525 7500 23450 5525 Econ/Fin 0.73 0.77 0.83 0.79 0.77 Crew Hour (b) Financial 25 38 38 50 38 Economic 18 27 27 46 27 Econ/Pin 0.72 0.72 0.72 0.91 0.91 intenawe Labour I Financial 69 69 69 69 69 Econonic 63 63 63 63 63 Econ/Pin 0.91 0.91 0.91 0.91 0.91 P1leragf Time (d) _ Financial 6.9 12.2 15.7 15.7 5.1 Economic 6.1 10.9 14.0 14.0 4.5 Econ/Fin 0.89 0.89 0.89 0.89 0.89 Overbeads_ _ __ _ _ _ Financial 23000 28000 30000 92000 30000 Econonic 20470 24920 26700 81880 26700 Econ/fPm 0.89 0.89 0.89 0.89 0.89 - 82 - Table A13.3 GUYA ANA HM STUDY SLthORY OF COMPARISON OF ALTERNATIVE (USS Million) DISCOUNT RATE ORIGINAL ALTERNATIMS NET INTERNAL 12.5% LENGTH PRESENT RATE OF VALUE RETURN. Link Such: SupomnChCbadly SB. KM ALT1 vs. ALT 1.062 Many (Pot Hole. Patching) Link Such: Supernam-ChaT 58. KM ALT2 vs. ALTO 1.403 many lReslaling) Link Such: Supemam-Chauity 58. KM ALT3 vs. ALTO 8.632 27.1 (Resurfacing __________ ~~~~~1 1/2" th.) Link Such: Sup u8nam-Charity S. KM ALT4 vs. ALTO 9.172 29.5 (Resurfacing 2"- i.) Link Such: Supenam-Charity 58. KM ALTS vs. ALTO 8.392 26.2 (Resurfacing 2 1/2' th.) GUYANA SoesykLndaL ShS Cars,Vans Jeeps, Mini Light Heavy Total Total Year Landrover Buses Trucks Trcks Buses Tractons PCU Vehicles 1980 453 130 36 24 50 66 3 1,042 762 1981 290 77 13 20 61 43 1 753 505 1982 475 118 33 36 56 36 6 1,016 760 1983 354 131 32 43 56 48 8 966 672 1987 _ 331 116 86 50 71 43 14 1,039 711 1989 262 103 222 13 86 14 6 932 706 1991 193 123 235 17 3 896 668 1992 263 189 335 24 104 20 4 1,235 939 Aver. Annual Ghth. 1983-1992 (%) -3.2 4.2 29.8 -6.3 7.1 -9.3 -7.4 3.8 Aver. Annual Grth. 1980-1992 (%) -4.4 3.2 20.4 0 6.3 -9.5 2.4 1.8 - x (D GUYANA Soesdyke - Iinden HA hw1ay Vehicle Onerating Costs per Km per Vehide (US$ at Roughness 2S00him/) | __ __ ____ ROUGHNESS = 2500 (mm/kin) VUIICLE Type Cbu 2500 2700 2800 3100 3500 40 4500 2 Jeeps, 0.1072 0.1125 0.1140 0.1184 0.1233 0.1368 0.1442 ____ andos oo__ 3 Mini Busm 0.1093 0.1122 0.1136 0.1181 0.1250 0.1353 0.1454 4 Lig Trucks 0.2964 0.3121 0.3144 0.3167 0.3143 0.3368 0.3375 s Heavy Trucks 0.3419 0.3503 0.3518 0.3566 0.3614 0.3779 0.3867 6 Buses 0.1350 0.1352 0.1357 0.1374 0.1407 0.1450 0.1500 7 __Tmacton 0.1318 0.1351 0.1360 0.1384 0.1408 0.149 0 .1522 PHl (DX> :> 'n - 85 - ANNEX 13 Table A13.C HDM STUDY RESULTS F'OR LINDENHIWA SUtUMLARY OF COMPARIS1ON OF ALTERNATIVS (USS Million) DISCOUNT RATE = ORIGINAL ALTERNATIVES NET INTERNAL 12.0% LENGTH PRESENT RATE OF VALUE RETURN - LINK SOLI: SOESDYKE- 67. KM ALTI vs. ALTO .290 35.2 (Pot LINDEN Hols Patching) LINK SOLI: SOESDYKE- 67. KM AL12 vs. ALTO 2.362 21.8 LINDEN _ (Rdeling) LINK SOLI: SOESDYKE- 67. KM ALT3 vs. ALT0 .208 Many LINDEN (Resurfacing 1 112" th.) LINK SOLI: SOESDYKE- 67. KM ALT4 vs. ALTO -.897 Many LINDEN (Rsturfacing LINK SOLI: SOESDYKE- 67. KM ALTS vs. ALTO -1.794 Many LINDEN (Resurfacing 2 1/2- th.) - 86 - ANNEX 14 GUYANA INFRASTRUCTURE REHABIUTATION PROJECT ENVIRONMENTAL CONSIDERATIONS I. Introduction With a large portion of its territory covered by virgin forest, the presence of indigenous peoples and the economically important, but environmentally sensitive coastal areas, Guyana needs to pay serious attention to the environmental impact of its development activities. Some recent events seem indicate that the requisite level of attention is not being given. For example, no environmental impact assessment was made of the so-called Brazilian road, the first half of which has already been built, before its start and none has still been carried out. Also, there has been recent complaints from environmental against the Demerara Logging Company logging in areas protected for the indigenous Amerindians. H. Existing Environmental Laws on Sea Defenses and Transport There is no law governing the monitoring and correction or mitigation of environmental impact in Guyana. A draft Environmental Act for the purpose has been submitted for legislation, but its passage into law was originally delayed by the suspension of parliament and more recently by the government's pre-occupation with the preparation of the 1992/93 budget. The draft provides adequate safeguards for environmental protection. Four main public agencies are involved in monitoring environmental protection: the Guyana Natural Resources Agency (GNRA), the Guyana Agency for Health Sciences, Education, Environment and Food Policy (GAHEF) and the Ministries of Health and Agriculture through their respective environmental monitoring units. There is also a National Council for the Environment with representatives from all relevant ministries and governmental agencies, which is expected to set environmental policy and, through various government bodies, monitor compliance with the policy. GNRA is responsible for ensuring that all new concessions for the exploitation of natural resources comply with the environmental standards included in the draft law. GAHEF on the other hand, deals with all other types of developmental projects. - 87 - III. Sea Defenses Activities Sea defenses activities can potentially have adverse impacts through the damage to the natural environment at quarry sites and possible destruction of mangrove stands. GAHEF, with the assistance of CIDA, is conducting an environmental impact assessment of the development activities in the coastal zone of Guyana. A copy of the progress report was not available during project preparation. V. Transport Activities No systematic EIA has been prepared for transportation projects or activities. Although the MOPWCRD is represented on the national council for the environment, it has not been bringing up its projects for review. This is partly because the ministry does not have any professionally trained staff. While a full environment unit may not be necessary or feasible within the ministry it would be essential to have at least one trained environmentalist working in the CTPU. Moreover the rest of MOPWCRD staff would benefit from: (a) a seminar on environmental consideration to be addressed in the design and construction of transport facilities, and (b) guidelines on incorporating these considerations routinely in their design work. GAHEF is willing and able, with the assistance of a short-term consultant, to organize such a seminar and develop guideiines for MOPWCRD. The project will provide financing for such assistance. In addition, MOPWCRD will appoint one of its existing economists or engineers for training in environmental affairs either within GAHEF or overseas. IV. Environmental Impact Assessment of Project and Brazilian Roads Environmental impact assessment of the project roads are being carried out as part of the consultants' detailed engineering studies for the roads. For the Brazilian road, the first section of which has already been completed, the Government will, as a component of the project, conduct an EIA. This will be done by GAHEF with the assistance of foreign consultants, financed by the project. V. Monitoring of Environmental Impact of Transport and Sea Defenses Transprt Institutional Arrangements MOPWCRD does not have an environmental unit or officer in charge of monitoring the environmental impacts of transport activities. The only possible point of review is within the National Environmental Council (NEC), an advisory body with representatives from all the ministries. MOPWCRD is represented at the council which meets at regular intervals and on special ocassions when important environmental issues arise. GAHEF and the Environmental - 88 - Monitoring Unit of the Ministry of Agriculture both play important roles in the review and monitoring of the environmental impact of feeder roads activities. Under the project, MOPWCRD will appoint a Transport Environmental Officer on a part time basis to monitor the incorporation of environmental considerations in the planning, design, implementation, maintenance and operation of transport facilities. The project will provide for the training, overseas or locally, of the appointed staff. GAHEF has had good experience in training its staff and has agreed to assist the MOPWCRD in the selection of institutions for training as well as providing support for managing the conduct of EAs for transport activities. The tasks of the Environmental Expert would be as follows: (a) to review systematically all transport sector investment and maintenance activities to identify possible environmental problems or issues and to bring them to the attention of the Minister of MOPWCRD and to the NEC; (b) to make recommendations to MOPWCRD on actions to be taken on identified problems or issues; (c) to initiate the conduct of EA by consultants where necessary and to review, with the assistance of GAHEF or GNRA, the EAs; (d) to follow up on the implementation of the recommendations of the EAs; and (e) to ensure that the environmental specifications written into roadwork contracts are adhered to. Sea Defenses Institutional Arrangements Sea defenses come under the responsibility of the Ministry of Agriculture (MOA) which has its own environmental monitoring unit. The unit has not, however, systematically reviewed the environmental considerations on sea defenses. GAHEF, with the assistance of a CIDA-financed consultant, had started carrying out an environmental assessment of the impact of sea defenses activities. The study was not completed due to the shortage of funds. IDB is preparing a Coastal Area Management Project which would include an environmental study of sea defenses. Items considered include the effect of quarry operations for boulders for sea walls, the effect of modifying the sea defenses on mangrove stands, etc. - 89 - ANNEX 15 GUYANA INFRASTRUCTURE REHABILITATION PROJECT SUPERVISION STRATEGY The project includes a large number of components: sea-defenses and road rehabilitation, preventive road maintenance, purchases of equipment, technical assistance, and a comprehensive training program. Furthermore, the project has to be monitored in the context of a substantially larger investment program for the 1992-97 period. Experience under previous credits in other countries shows that the average ten man/weeks per year for supervision is insufficient to provide effective control over the program in a country with such a weak institutional capacity as Guyana. To reduce the need for IDA manpower, an expanding monitoring and reporting role will be played by the Borrower through the Project Executing Units (PEUs) in the Roads Division of MOPWCRD and in the Hydraulics Division of MOA. RAD and HD will recruit consultants, to be financed by the credit, for assistance to the PEUs and supervision of works. The consultants will report each quarter to the MOPWCRD, MOA, and IDA. All issues which will arise will be dealt with in joint meetings between the Government and IDA and during semi- annual project reviews. During these meetings remedial actions will be agreed upon. We intend to have a two-pronged IDA supervision. First, to allow intensive field supervision we will recruit a local consultant for a period of about 12 staff-weeks, in stretches of 3 weeks. After each 3-week assignment he will send to the Bank a report identifying any project issues. This arrangement will not be too costly, as we expect to pay about US$3,000 per month, so the 12 weeks will cost us no more than about 4 weeks of regular staff. Second, we will provide about 12 staff-weeks of in-house supervision: 8 staff-weeks of the engineer's time (mainly for procurement and monitoring of technical assistance tasks and implementation of road maintenance plan) and 4 staff-weeks for the economist (cost-recovery, road and sea defenses financing and budgeting, etc.). In sum, we plan to dedicate about 24 staff-weeks to supervision, at a cost which is equivalent to only 16 staff-weeks. Thus, supervision will be intensive but its cost within reasonable limits. We intend to put a special effort into a project launch workshop planned for August 1993 (once the credit is declared effective) to establish the grounds for project implementation and supervision. We have also provided semi-annual project reviews and a mid-term project review with the participation of the Government (MOPWCRD, MOA and Ministry of Finance) and IDA. The semi-annual reviews will cover the following: (i) progress in carrying out the civil works, including revisions found to be necessary, (ii) the proposed annual road maintenance - 90 - programs which would be presented to the Ministry of Finance (MOF), (iii) progress of technical assistance and training which would be financed by others and (iv) the results of environmental monitoring carried out by the MOPWCRD; and (v) audit reports. The project will be monitored against the project implementation schedule, detailed in Table 3 and 4, the estimated schedule of disbursements, Table 5, and the attached action program. A mid-term project review will be carried out on June 30, 1996 coinciding with a semi-annual review, and will cover: physical progress of the project; execution of the institutional strengthening program; implementation of the road maintenance plan; compliance with the attached action program; and the arrangements and schedule for the transition of key positions in the Program Executing Units of RAD and HD, initially staffed by IDA-financed experts, to Government staff. - 91 - ACTION PROGRAM DATE ACTIO June 30, 1993 - Arrangements with GAHEF to prepare the environm. assessment for the Lethem-Linden road (para. 1.10). - Arrangements with the agent for handling procurement (para. 2.16). September 30, - Assignment of duties, budget and staff to the PEUs (paras. 1.19, 1.22 1993 and 2.11). - Agreement on the results of the sea defenses cost-recovery study (para. 1.23). December 31, - Completion of the environmental assessment for the Lethem-Linden road 1993 (para. 1.10) - Appoinment of an environmental officer for CTPU (para. 2.26) June 30, 1994 - Maintenance program and budget for roads for the period January 1995 - December 1998 (para. 1.16) - Arrangements for funding 0 & M of the road network (para. 1.17). - Implementation plan of the agreed recommendations of the sea defenses cost- recovery study (para. 1.22). - Arrangements to organize training courses on environment monitoring for MOPWCRD people (para. 2.26). - Completion of review and recommendations of the existing transport policy (Annex 10). December 31, - Establishment of transport data bank (Annex 10). 1994 - Completion of information and analysis of existing plans of all public transport sector entities (Annex 10). December 31, - Completion of the contract for preventive road maintenance. 1995 - Terms of reference for the mid-term project review (para. 2.29). June 30, 1996 - Completion of the following studies (para. 2.07): * Data bank along the coastline on tidal and morphological measurements * Creation of an off-port container terminal * Establishment of a national port authority - Arrangements and schedule for the transition to Government staff of the PEUs of HD and RAD (para. 2.11). June 30, 1997 - Completion of the transition to Government Staff of the PEUs of HD and RAD. June 30, 1998 - Completion of the training program for RAD staff (para. 1.16). - Completion of the training program on environment monitoring (Annex 9). - 92 - Table 1 - f ~~~~~~~~~~~~~~~~~~~......... .............................. "' ~ ' Current Expenditures 3.95 5.67 3.39 4.68 2.21 Capital Expenditures 3.98 3.40 2.25 4.61 6.93 TOTAL 7.93 9.07 5.64 9.29 9.14 As a %E of Total GoG Expenditures 2.1696 1.52% 1 .85% 2.54% 4.30% Source: Central Transport Planning Unit of MCW Table 2 . .. .......~.maus uku 0''''""''1 ' ""9"'i'-.'-.''.."""'''"''""''~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~... .... Demerara Bdge. Rchb EEC 5.0 1.0 6.0 | Rchb. G'town-Socadykc IDB 2.1 6.4 2.1 10.6 | Rchb. Tirnchri Airport - 3.0 4.5 1.5 9.0 | Demerara River Nav. - 1.0 1.0 Soesdyke.Linden Rd. CDB 2.2 3.0 5.2 Rehb. P erry Pleet EEC 1.5 1.5 3.0 Rchb. peeder Roads IDB 1.0 20 2.0 1.0 6.09 Rehb. W. Coaut Berbicc IDB 1.0 3.0 2.0 6.0 | Rehb. Essequibo Rd. IDA 3.0 4.4 1.2 8.614 Container Park I Rchbtu. reswnMa6c 1.4 1.5 2.0 14. 4.5 | Source:la n tra Tranpo r t Plnnn Unit 5.0 2.5 10. f -~~~~~~~~~~~~~~~~~~~~........ ..........,...... .. .g...',,, ,, ,., -,a gi g..... __ ~~~~~~~~~~~~~~~~~~~~~~~~~~.. .......... ........ .. ....... 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WI IS Wll U wel WI WI ill WI We I WI to'sIOi'S WI Ws WS I e W We _II's _136 IIPI-WP _ _O _we are S we r r " I _* gel el'o . . we r l 1 C" W wel t" SW Wa _A@ r- sl _A__ WI _* 51 W £0 WI WIs rI WI ill WI W W 1W WI ill WI W *1 WIG WI WI _I q3AA-II3 ad'os Y aovweo wea Are owe olw Aoet twsoWIse : two if a O` Aoireu AS wett Aowe ILkLWL AOIl W Val WIW BO AO VaI W Oil WAO Val IL III AS, Vo Ii iL II wi 1wIM WIe vI WIgm WI ql3lIlI _ _ _ _ _ _ _ _ __ __ _ _ _ __ _ _ _ AO119011 sNYUVUAAWI 11.110LanasasoUd £n_VUU * s|~~~~~~~51100-S - 94- Table 4 GUYANA Tablb 4 INFRASTRUCTURE REHABIUATION IMPLEMENTATION SCHEDULE ESTIMATED ANNUAL CONTRACTUAL AND OTHER PAYMENTS (US$ MILLION) PROJECT YEAR TOTAL PROJECT COMPONENT 93/94 94/95 95/96 96/97 97/98 PAYMENTS REMARKS Works Sea Defenses Rehabilitation 0.70 2.10 2.10 1.40 0.70 7.00 ICB ......... xxxxxxxxxxxxxxxx Essequibo Road Rehabilitation . 1.07 3.21 3.21 2.14 1.07 10.70 ICa ......... xxxxxxxxxxxxxxxx Linden Highway Rehabilitation 0.64 1.93 1.93 1.29 0.64 6.42 NIF ......... xxxxxxxxxxxxxxxx Road Maintenance 0.18 0.54 0.54 0.36 0.18 1.80 ICa ......... xxxxxxxxxxxxxxxxx EQUIPMENT MATERIALS AND GOODS Office Equipment and Vehicles 0.11 0.11 0.11 0.33 LIS/SHOPPING ...xxxxxxxxx Fire Equipment and Spare Parts and Materials 1.10 1.10 2.19 LIB/SHOPPING ...xxxxxxxxxxxxx CONSULTANTS Works Supervision 0.10 0.30 0.33 0.24 0.12 1.09 ..xxxxxxxxxxxxxxxxxxxxx Institutional Streghtening (T.A.) 0.77 0.77 0.65 0.55 0.11 2.85 ..xxxxxxxxxxxxxxxxxxxxX Studies 0.22 0.16 0.49 0.87 ..XXXXXXXXXXXXXXX MISCELLANEOUS Refinancing PPF 0.75 0.75 TOTAL COST INCLUDING CONTINGENCIES 5.27 10.62 8.87 6.74 2.63 34.00 (IDA FINANCED) 4.43 8.20 6.52 5.14 1.87 26.00 - 95 - Table 5 GUYANA INFRASTRUCTURE REHABILITATION PROJECT ESTIMATED SCHEDULE OF IDA DISBURSEMENTS Disbursed in Cummulative Quarter Disbursemet Cumulative US$m US % FY 1994 September 30, 1993 2.78 2.78 10.7 December 31, 1993 0.50 3.28 12.6 March 31, 1994 0.50 3.78 14.6 June 30, 1994 0.50 4.28 4.28 16.5 FY 1995 September 30, 1994 1.00 5.28 20.3 December 31, 1994 1.00 6.28 24.2 March 31, 1996 1.60 7.78 29.9 June 30, 1996 1.60 6.00 9.28 35.7 FY 1996 September 30, 1995 1.50 10.78 41.5 December 31, 1995 1.50 12.28 47.2 March 31, 1996 1.50 13.78 53.0 June 30, 1996 1.50 0.00 15.28 58.8 FY 1997 September 30, 1996 1.25 16.33 63.6 December 31, 1996 1.25 17.78 68.4 March 31, 1997 1.25 19.03 73.2 June 30, 1997 1.25 5.00 20.28 78.0 FY 1998 September 30, 1997 1.00 21.28 81.8 December 31, 1997 1.00 22.28 865.7 March 31, 1998 1.00 23.28 89.5 June 30, 1998 1.00 4.00 24.28 93.4 FY 1999 September 30, 1998 0.60 24.78 96.8 December 31, 1998 0.50 25.28 97.2 March 31, 1999 0.50 25.78 99.2 June 30, 1999 0.22 1.72 26.00 100.0 K -, . 7F,>-R.Y.<$;,,.wkj.e sD.G 2Z X t Anumptions: Loan signing date: April 1993 Loan effectivaxen: ly 1993 Project Completion: December 199 LAn Closing Date: Jun 1999 Includes payment of PPF and initiel deposit to Special Account. MAP SECTION IBRD 24266 KtMarowhara~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ t ~~~~~~GUYANA >NFRNFRATRUCTURE REHABILITATION PROJECT oz w \ $W2g f tsy \ CIVIL WORKS J )JiS ~~~~~~~~~~ATlANTIC 4 +7- X guX X ~~~~~~~~OCEAN LsI;X] SUPENMM8/) S9w ,GEORG~ETOWN EQU ( K AIC \ A/lme. \t; | {VREEDEN«ESDYK,5 terweo.gt (5 Ke < 9 ; < 3 i 5 NDEII C >~~~~~~~~~~~~NE \ 01 - 9 $ J =SIIMC/KEM {t/) FRIENDSH ({}SLeldon~~~~~TERDA \ / z tl / P ~~~~~~~~~~~~~~~~~~~~~~~~~~~J E6..l REHABILITATIONCOMPONENTS: KURUP u ( FINANCED BY IDA J KTt UUU^I _ ROAD REHABILITATION ( / NDIG ) / *{-ROADMlAINTENANCE ~ / f S U R I N A M E SEA DEFENSES tg1) 50 FINANCED BY CDBJ,, f IE ROADS 7 ,0 1 0 30 40 10 4 FINANCED BY IDB , S \0 20 40 60 8 _ ROADS <7 vK nno\ t >KILOMETERS PR MARY ROADS LETHE ;) J& SECONDARY ROADS J TRACKS ; e \ 60NATIONAL CAPITAL WIHA6AI fWMDA PA Ar L A N T I C