Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-4563-BR MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$100.0 MILLION TO FERROVIA PAULISTA, S. A. FOR A FEPASA RAILWAY REHABILITATION PROJECT May 18, 1987 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = Cruzado (Cz$) US$1 - Cz$ 23.88 (April 20, 1987) 1/ Cz$ 1 - US$0.0419 (April 20, 1987) 1/ FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES Metric System ABBREVIATIONS BNDES - Banco Nacional de Desenvolvimento Economico e Social National Bank for Economic and Social Development FEPASA - Ferrovia Paulista, S.A. Sao Paulo Railway Company RFFSA - Rede Ferroviaria Federal, S.A. Federal Railway Company 1/ Exchange rates wkitc1- were used for all calculations in this memorandum. Since April 20, 1987, the cruzado has been devalued; the rate on May 15, 1987 was US$1 = Cz$ 30.80. FOR OMCAL Use ONLY BRAZIL FEPASA RAILWAY REHABILITATION PROJECT LOAN AND PROJECT SUMMARY Borrower: Ferrovia Paulista S.A. (FEPASA) Beneficiary: Ferrovia Paulista S.A. (FEPASA) Guarantor: Federative Republic of Brazil Amount: US$100 million equivalent Terms: Repayment in 14 years, including three and one half years of grace, at the Bank's standard variable interest rate. Onlending Terms: Not applicable Financing Plan: FEPASA $ 63.7 million BNDES $ 107.8 million Cofinanciers $ 13.5 million IBRD $ 100.0 million TOTAL $ 285.0 million Economic Rate of Return: 21% Staff Appraisal Report: No. 6531-BR This document has a restricted distribution and may be used by recipients only in thto - of their official duties. Its contents may not otherwise be disclosed without World Bank a. M. MEMORANDUM AND RECO(MENDATION OF THE FRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO FERROVIA PAULISTA, S.A. FOR A FEPASA RAILWAY REHABILITATION PROJECT 1. The following report on a proposed loan to Ferrovia Paulista, S.A. (FEPASA), the Sao Paulo State Railway, for US$100 million equivalent is submitted for approval. The proposed loan, which would be repaid over 14 years, including three and one half years of grace, at the Bank's standard variable interest rate and charges, and guaranteed by the Federative Republic of Brazil, would help finance a FEPASA Railway Rehabilitation Project. 2. Background. FEPASA was formed in 1971 by the merger of five separate railroads; it is owned almost entirely by the State of Sao Paulo. The network, which consists of about 5,200 km of track, is organized into three main corridors which converge in the Sao Paulo metropolitan region and in the Santos port and industrial area. FEPASA Is predominantly a freight, heavy-haul railway. Freight traffic increased at an average annual rate of 14% during the second nart of the 1970s, and it stabilized at about 20 million tons (7.0 million ton-km) p.a. during the early 1980s. It started to increase again in 1985, although a number of bottlenecks in the system, including the poor condition of important line sections and of a large portion of the locomotive fleet, are preventing FEPASA from fully meeting the demand. Freight traffic is forecast to increase at an average of 5% to 6% p.a. in the medium term, provided the bottlsnecks are removed, and then to gradually stabilize. FEPASA's long-distance passenger traffic, which is now about six million passengers p.a., is expected to continue to decrease, and its passenger commuter traffic (about 87 million passengers p.a.) is expected to increase at a reduced pace of about 5% p.a. in the medium term. FEPASA's freight business has generally been lucrative, with freight revenues covering operating costs (including depreciation) and generating a cash surplus more than sufficient to compensate for the cash deficits of the metropolitan and long-distance passenger services. The railway, however, has constantly incurred losses because of large interest payments on its debts and other financial expenses. The Federal Government's control over railway tariffs and the State Government's control over FEPASA's investments and operations, together with FEPASAMs own inefficiencies in various areas, particularly planning, cost-control and management, led the railway to rely excessively upon borrowings and have driven its debt to the level of about US$1.6 billion equivalent. 3. Project Objectives. The objectives of the project are: (a) the financial rehabilitation of FEPASA and the establishment of the necessary conditions for operating the railway on a commercial basis; and (b) increased transport efficiency in the main corridors leading to Sao Paulo and to the port of Santos. The project was designed to provide support to FEPASA and the Sao Paulo State Government in implementing the policy and institutional adjustments, and the rehabilitation of essential railway and intermodal facilities, required to achieve these objectives. By achieving these objectives, the project would contribute to more efficient recource use in the transport sector, particularly through further specializing the railway in the services for which it has a comparative advantage over road transport. It would also facilitate agricultural development and external trade through more efficient transport services between the agricultural frontier in the Center-West region, the industrial metropolitan region and the country's major port. 4. Rationale for Bank Involvement. The Bank's involvement in the project would help to implement the appropriate mix of policy and institu- tional adjustments and of physical investments necessary to gradually turn FEPASA into a commercially viable railway. In particular, it would help to ensure an adequate separation of the socially oriented metropolitan train operation from FEPASA's freight and long-distance passenger bu3inesses and the resolution of the debt problem, better define the railway's and the Government's respective responsibilities, focus expenditures on necessary rehabilitation and maintenance rather than on new construction or purchases, and adhere to appropriate operational and financial policies and targets to achieve the stated objectives. By helping to establish the conditions for an effective management of the railway, the project would also contribute to the Bank's public sector management objectives for Brazil. 5. Project Description. The proposed project includes both a policy and institutional development action program and an investment component. The action program would consist of the implementation of policies and actions for: (a) an organizational and financial restructuring of FEPASA; (b) the rationalization and improved operation and financing of FEPASA's commercially non-viable services, and effective corporate and business planning; (c) appropriate tariffs, marketing and cost control; (d) the development of the operations and maintenance management systems; and (e) effective personnel management and training. The investment component would consist of FEPASA's Rehabilitation Program, and of technical assistance and training programs which would support the implementation of the action program. FEPASA's Rehabilitation Program includes: (a) the rehabilitation of infra- and/or superstructure on critical line sections; (b) the rehabilita- tion or expansion of yard and intermodal terminal facilities; (c) the improvement of the railway's telecommunications system; (d) the purchase of track maintenance equipment, spare parts and materials; (e) the rehabilita- tion of locomotives and components and purchase of spare parts; (f) the purchase of specialized wagor.s; and (g) equipment for workshops. 6. The total cost of the project is estimated at about US$285.0 million equivalent, with a foreign exchange component of about US$152.0 million (53%). The project would be implemented over seven years. A breakdown of costs and the financial plan are shown in Schedule A. Amounts and methods of procurement and disbursement, as well as a disbursement schedule, are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Brazil are given in Schedules C and D, respectively. A map showing the location of the investment component is also attached. The Staff Appraisal Report, No. 6531-BR dated May 7, 1987, is being distributed separately. 7. Agreed Actions. The following actions were agreed: (a) the State would assume and capitalize FEPASA's State-guaranteed, pre-1987 debt; the Federal and the State Governments would study and define the treatment of FEPASA's Federally guaranteed debt by November 30, 1987; FEPASA would limit its future borrowings, as a percentage of internally generated funds, to the - 3 - agreed targets, decreasing from 340% in 1987-1988 to 40% in 1991-1993; (b) FEPASA would maintain separate accounts and operating and capital budgets for the metropolitan train operation, complete the separation of the balance sheet items by the end of 1987, and refrain from transferring funds to this operation from its other revenues unless it is required by normal business compensation practices; and, each year, forward to the Bank, for review and comment, the normalization arrangements with the State regarding commercially non-viable services for the forthcoming year; (c) FEPASA would upgrade its cost-accounting system and develop a cost-related, market-based tariff structure by December 31, 1988; the Federal Government's policy of gradually freeing RFFSA's tariffs would also apply to FEPASA, which would enable FEPASA to set freight tariffs on a commercial basis upon completion of the above; FEPASA would adjust its freight tariffs and rates and its passenger fares, and reduce and/or rationalize its commercially non-viable passenger and freight services so as to: (i) achieve the agreed annual targets for working ratios (including normalization payments), which would decrease, between 1987 and 1993, from .93 to .61 for the freight business, from 1.6 to 1.0 for the long-distance passenger business, from 1.4 to 1.0 for the metropolitan train and from .93 to .69 for the entire company; (ii) contain Government normalization payments for the long-distance passenger and freight services, as a percentage of corresponding operating revenues, below the agreed limits, decreasing from 12% in 1987 to 3% in 1993; and (iii) by the end of 1993, recover all costs, including depreciation and interest, from operating revenues; (d) the State Government and FEPASA would prepare a pluriannual plan for the metropolitan train and a pluriannual plan for the railway's long-distance passenger services by December 31, 1987; FEPASA would prepare a corporate plan by June 30, 1988; FEPASA would analyze the feasibility of its new investments in accordance with technical and economic criteria satisfactory to the Bank, and, each year, discuss its pluriannual investment program and financing plan with the Bank; (e) FEPASA would develop a sales planning and control system and finalize joint-venture arrangements for the construction and operation of grain terminals by July 31, 1988; undertake by December 1, 1987, and complete by December 31, 1989, the consolidation of the organization of operations and maintenance, and the development and implementation of inrormation and control systems for operations, locomotive and wagon maintenance, and for track maintenance; and undertake by December 1, 1987, and complete by December 31, 1990, the development and implementa- tion of a personnel management and training program; (f) FEPASA would maintain organizational arrangements and a project monitoring system satisfactory to the Bank, and a Project Account in Cruzados with a guaranteed credit line of not less than US$1.0 million equivalent; retroactive financing for not more than US$1.0 million would be available for technical assistance and training expenditures incurred after May 1, 1987. As conditions for loan effectiveness, FEPASA would: (a) p:t into effect the project organization and monitoring system; and (b) establish the Project Account in form and substance satisfactory to the Bank. 8. Justifi.cation. Economic benefits under the project are expected from (a) train operating cost savings; and (b) total transport cost savings related to traffic that would transfer to road transport if the project were not implemented. The economic rate of return of the overall investment component of the project is estimated to be 21x. The rates of return of the major individual investments, which were evaluated separately, are estimated to be between 16% and 30%. - 4 - 9. Risks. Project benefits could be affected by lower-than-expected economic performance, particularly in the agriculture and export sectors in the regions served by the project corridors, and by unexpected delays in project implementation. However, assuming that the transport demand is 20% below the forecast and project costs are 20% higher than the estimates, the project would still have a 14% rate of return. An appropriate project monitoring system would be established to minimize the risks. 10. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve the proposed loan. Barber B. Conable President Attachments Washington, D.C. May 18, 1987 Schedule A PROJECT COSTS AND FINANCING PLAN Estimated Costs: 1/ - …US$ Million-- Local Foreign Total Civil Works 34.7 19.6 54.3 Materials 36.5 45.9 82.4 Equipment 24.2 50.4 74.6 Mechanical Works 13.7 15.6 29.3 Technical Assistance 7.0 2.7 9.7 Training 1.5 0.8 2.3 Total Base Cost 117.6 135.0 252.6 Physical Contingencies 8.6 9.0 17.6 Price Contingencies 6.8 8.0 14.8 Total Project Cost 133.0 152.0 285.0 Financing Plan: ---US$ Million---- Local Foreign Total IBRD - 100.0 100.0 BNDES 69.3 38.5 107.8 Cofinanciers - 13.5 13.5 FEPASA 63.7 - 63.7 Total 133.0 152.0 285.0 I/ Prices as of April 1987, including estimated local taxes and duties totaling US$45.8 million. Schedule E pige 1 of 2 PROCUREMENT Procurement Methods Expenditure Categot ICB LCB Other Total Cost A. Civil Works - 62.8 62.8 (17.9)1/ (17.9) B. Materials 79.9 11.2 91.1 (61.5) (1.3) (62.8) C. Equipment 12.1 63.1 8.82/ 84.0 (8.5) (3.5) (12.0) D. Mechanical Works - 28.5 4.72/ 33.2 E. Technical Assistance - - 11.3 11.3 (5.8)J/ (5.8) F. Training of Personnel - - 2.6 2.6 __1_5)3/ (1.5) Total 92.0 165.6 27.4 285.0 (70.0) (22.7) (7.3) (100.0) 1/ Figures in parentheses indicate proposed financing by the Bank. 2/ Supplier credits. 3/ According to Bank Guidelines. Schedule B Page 2 of 2 DISBURSEMENTS kmount of the Loan Allocated X of (Expressed in Expenditures Loan Category Dollar Equivalent) to be Financed (1) Works 15,700,000 60% (2) Goods 67,700,000 100% of foreign expenditures, and 100% of local expenditures (ex-factory cost excluding taxes) (3) Consultants' 6,300,000 (a) training abroad: services and 100% of foreign expenditures training (b) training in Brazil: 50% of local expenditures (c) consultants: 50% of local expenditures for consultants residing in Brazil, and 100% of foreign expenditures for other consultants. (4) Unallocated 10,300,000 Total 100,000,000 Estimated Disbursements: Bank FY 88 89 90 91 92 93 94 … US$ Million - - - - - - … - Annual: 9.0 1/ i5.0 24.0 25.0 17.0 7.0 3.0 Cumulative: 9.0 T/ 24.0 48.0 73.0 90.0 97.0 100.0 1/ Including initial deposits into the Special Accounts totaling US$5.0 million. Schedule C BRAZIL FEPASA RAILWAY REHABILITATION PROJECT Timetable of Key Project Processing Events Section I: Timetable of Key Events (a) Time taken to prepare the project: 16 months (b) Prepared by : FEPASA and Sao Paulo State Transport Secretariat with Bank assistance (c) First Bank Mission : May 1985 (d) Appraisal mission departure : September 1986 (e) Negotiations : April 1987 (f) Es!Aimated Date of effectiveness : September 1987 (g) Relevant PCRs and PPARs :Loan 1074-BR (Second Railway Project) Loan 1171-BR (Third Railway Project) PPAR No. 6295 of June 20, 1986. Schedule D Page I of 3 THE STATUS OF WBK GROUP OPERATIONS IN BRAZIL A. SUMMARY STATEMENT OF LOANS (As of March 31, 1987) Amount less Urdis- Loan # Year Borrower Purpose Cancellations bursed (US' Pillions^) Ninety four loans fully disbursed 4,776.2 1537 1978 Brazil Rural Development 16.0 3.1 1538 1978 ELETR0BRAS Power 127.4 2.3 1770 1979 Brazil Urban Development 70.0 4.8 1721 1979 COPEL Power 86.7 - 1721-5 1979 COPEL Power 22.3 7.8 1728 1979 krell Rural Development 31.4 4,9 1729 1979 Brall irrigation 28.0 0.1 1839 1980 Brazil Urban Transport 134.0 1.1 1850 1980 Banco Nacional da Habitacao Water Supply 139.0 7.8 1867 1980 Brazil Education 32.0 6.1 1877 1980 State of ]Minas Gerais Rural Development 33.0 10.0 1B95 1981 ELETROSUL Power 85.4 15.5 1924 1981 Brazil Rural Development 56.0 9.5 1939 1981 ELETROBRAS Power 54.0 30.7 1965 1981 EB3I' Urban Transport 90.0 1.7 1970 1981 Banco Nacional da Habitacao Water Supply 180.0 56.6 1989 1981 Brazil Alcohol Development 235.7 2.9 2015 1981 Brazil Agriculture 29.0 11.1 2016 1981 Brazil Agriculture 60.0 0.5 2060 1982 Brazil Agriculture 67.0 21.9 2061 1982 Brazil Health 13.0 3.0 2062 1982 Brazil Highways 240.0 48.4 2116 1982 Brazil Agriculture 26.4 9.2 2138 1982 ELETROBRAS Power 182.7 126.6 2163 1982 Brazil tgriculture 26.4 12.3 2170 1982 Brazil Urbar. Development 123.9 84.9 2197 1982 Brazil Rural Development 42.7 21.1 2196 1983 CVRD Iron Ore 304.5 50.3 2224 1983 Brazil Feeder Roads 154.0 65.5 2249 1983 Banco Nacional da Habitacao Water Supply 302.3 91.0 2268 1983 Brazil Agro-Industries 400.0 261.7 2269 1983 Brazil Rural Development 67.8 56.6 2343 1984 Brazil Urban Development 52.7 30.2 2347 1984 Brazil Export Development 352.0 0.6 2348 1984 Brazil Agriculture 303.0 0.5 2353 1984 Brazil Agriculture 65.2 54.7 Schedule D Page 2 of 3 A. SUMMARY STATE(MN? OF LOANS (Continued) (As of March 31, 1987) Amount less Undis- Loan # Year Borrower Purpose Cancellatiors bursed (US$ Millions) 1729-1 1984 Brazil Agriculture 7.7 7.0 2060-1 1984 Brazil Agriculture 22.8 22.7 2364 1984 Eletrobras Power 250.6 210.4 2365 1984 Eletrobras Power 222.8 49.1 2366 1984 Brazil Educatior. 20.0 12.5 2412 1984 Brazil Education 40.0 30.3 2446 1984 Brazil Federal Highways 210.0 90.9 2447 1984 State of Sao Paulo Health 55.5 36.1 2448 1984 Brazil Health Studies 2.0 1.7 2488 1985 Brazil Development Banking 300.0 164.8 2489 1985 Brazil Education 72.0 60.9 2523 1985 Brazil Rural Development 61.3 53.5 2524 1985 Brazil Rural Development 61.4 53.2 2532 1985 Brazil Rural WS&S Pilot 16.3 14.7 2563 1985 Brazil Railways 200.0 178.0 2564 1985 Eletrobras Power Transmission 400.0 384.7 2565 1985 Eletrobras Power Distribution 312.0 296.7 2593 1985 Brazil Land Tenure 100.0 86.8 2623 1986 State of Santa Catarina Urban Development 24.5 22.8 2645 1986 Brazil Urban Reconstruction 100.0 87.0 2679 1986 Brazil Agriculture 155.0 139.6 2680 1986 Brazil Irrigation Eng. 48.0 43.9 2681/1 1986 Brazil Urban Development 55.0 55.0 26997T 1986 Brazil Health 59.5 59.5 2718 1986 Brazil Rural Development 92.0 88.1 2719/1 1986 Brazil Irrigation 57.0 57.0 2721 1986 Brazil Public Sector 29.0 26.7 2727 1986 Brazil Credit & Marketing Reform 500.0 200.0 2761/3 1987 Brazil Rural Development 171.0 171.0 276 1987 Brazil Rural Development 78.0 78.0 276375 1987 Brazil Rural Development 122.0 122.0 Total 12,855.10/2 Of which has been repaid to the Bank 2,686.94 Total no outstanding 10,168.16 MAount sold 45.8 Of which has been repaid 45.8 0.00 Total now held by Bank 10,168.16 Total undisbursed 4,019.60 /1 Not yet effective. 75 No IDA credits have been made to Brazil. 75 Not yet signed. Note: The status of the projects listed in Part A is described in a separate report on all Bank/IDA financed projects in execution, which is updated twice yearly and circulated to the Executive Directors or. April 30 and October 31. ja4edule D 3Vf 8. qTOW OF ['C 08W0E1 a d ?4urch 31 1987) Pima~~~~~~~~~~~~~~~~~~ --& I LIM wAu- YrZ O b L L. g o rqo I balmNOligr LW d toul 1957 Urn do k 01CIff de CIO d l CWCIAW 8i4uM W , - . D 19SS 0 1i. S. A. Clus * t l Pulap 9ad r Pa-) 1J.2 195F D. t. L Ploeu do kam., S, A. MAcl Pu .s45 - 1.45 1958 WLyU.ailad do kall, S. A. - :Asltrio C Gt1o Ittor V4t:. 2.45 - 2.65 1959 Gmth Witg s de sCIi Pt laW, S. A. l;t 1.3 - 1.23 1959 0m1wi %blu1os, S. A. PO 4.0D - 4 i951sb/l%n9?2 AM VU.lu, S. A. k S.p I.n 9.93 066/1969 PqS e O(lULi COACUn. i. A. Rp ad P9gr 5.78 S.71 9.s9 1967/1972 L'1tsMsrnlU, S. A. - timtria . r de Pla gaaM FentLlmz 8.22 3.03 11.25 1969 Puzm*dd= t 8w. U S A. PywrvilS .so ) 2.A8 8.38 1970 P*U*Wtw, L SA, thaL eda Cetrcd PsUrdoscs 5.50 2.86 8.3a 1971 Odet, S. A. t4otda C*Go 9tetroa 604 1.44. 6.[0 1971 Kao t - O9p1a de O1u1 do 9A kip 4.90 - 4.90 1972/1975/1981/1987 da dB CIwo N .kr do *_ O 19i.14 6.70 MS5.& 19734/77MS1/83/84 xUa S1asgta% da omuge - CSMl 76.97 15.I7 92.24 1973 UtaL - t baLemK Ped - fP"P I.'8 s t 5.MD - 5.0D 1973/197/98 &mm de o4vjtn do %*Wm VWt" - C , S. A. X mS6.* mid fSazd 85MM 84 91.16 1974 ?rAtc VSilaw. S. A. Ela&U aId mstrIal W mt 6.OD - 6.tJ 1974 tidm" de Teado Tb , S. A. TUf 31.aD - 31.00 1975/1979 CpWaCa set'ra T t. d. Cazm81* 6.16 1.19 7.37 1975 dtMO Nhdt, S. A. Pettadma IC.OO - 10.CO 1976 5Sati bdMtda - t ll. *do a. S. A. TlIi 6.45 1.0) 7.45 i976/1S60 Tat S. A. - Ue Otatmum do tidwvts w1lsI 16.2D - 16.20 1977 R1 S. A, Pua6gto Iftslugstf 1l ad AidAnaCtIW 2V.03 - 23.a3 1977 .tnWom ha do :t SL A. Es 15.0O - 15.0 1978 CIMSSfWWAVS.A. Utln ad StUL 8.3' 3.0) :1.3 1979 Volw do hNUl 1aow. VaUti1, L A. lbtor WAm 60.00 6.95 t6.95 19SO H u94 do NUIts S. A. - _t5 u 2.0 . 2.0 19110 Bob do Par S/A - DS5 - iiltu . rst5A a oo 01j m de OPsZu. 03 1.0 1.X M.5O 1980 VLUIN tA _ot do S. A. - VAM ltm ad Sl 5.0D - 5.0O 1980 I - C hd L4&sla do P& lm w 30oa1a ad ft tbg uls 15.; 2.00 M7.O 1980 uJalgt Cmta S. A. 1a} and h dP - t.h5 0.25 1920 Sums a IQ s lU S//A 1 1 tum 35.Q 6.0 '1.40 19 9811 1987 f11g Pi"^g O1ma ad Pst mcdulCa 43 6.C0 49.0 1981 l- nad CWIp± 1 5S - 1.50 1.5D 1981 o_ta liaL do 4oP81a - .p ad Ftd Pge.zU 5.50 3.0 8.50 1981 (3md.a1c aid FPttaddul 46.(0) 4. 50.0.) 1982 Cl u Can ad l MrI0 mmta 40.0 5.0)D O10 1932 W Imlq S. A. MM (its. 0.Q45 33.45 1983 Ca I _ de PUdpLMM (CP) 5x C tAW Nut - .01 .01 1983 IM F di paw ad Vaud p 13.0D - 13.BD 1983 O tds do 1m (MUM Plm Oa 6.10 - 6.10 1983 PIS - ra1 do D_ S.A aIp & P.r PMadt 6D0.Q0 5.1J 65.17 1983 So ,m ha wol ad Pad ftklzg 3.0 2.5i 5.50 1963 C1O; a d CinwL Itklati 35.O - 35.00 1916 lmltrsr Pftu&" aulCul ad PuzdmlaW 3.0D 5.a) 8.0r 1986 aida AIa1q,dmca Q6cs,l Oulcal ad Fetrodad,uls 20.D 4.0) 24.0 19835 C5iado bmU aduia ad PutodadP_a 3.50 1.80 5.30 TOW G_ O ru %965.72 1i3.40 1.074. 12 tin Caolu.a±a. tqumiam. % lad Salen 785.45 32.63 6118.0 1TO Camts Now Hrld by 1 160.7 75.77 256.04 btA Witdd I0.50 7.67 3L.7 dlft 28, 1987 IBRD 20356 Canhbtwecor Seo 50. SAO 40* LUIS .~ .. ........ So FORTALEZA BR ZI L.. A't A Of s UTH MAP ..ac W AM ERICA Caralas0 .-......... TERESINA - roans Mos M. ou O g ~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~t| t NATAL AtoniCBRAZIL Sooe L. OoeaOn RAILROADS Pmrohnr ArcoletRC FEPASA d" dot - RFFSA ccrp teromyPoro 1 amc AM_o RACAJ rw fv8er rtl -A - Internotional boundaries * nml rS Th1 M.W. 8* _ .,e #,. t*rerSiowcS few Sdo F~~~~~~~~~~~~~~Araodcso p~n C.W ru 1s . zA ow Of rMp WV" nol &. cnn, f C t w W~ aan SALVADOR MA. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~JA AR RASLLIA > g > °°v°YR ~~~~~~~~~~~~~~~~~~~~P.ropworo MoesCro ToSwo , j-m S;oanlr + Coubo Jzeo PI5nR.I &o -or GOV / tro Esrae-orco |raet-l/ -N FFPASA \\bSvOA 1O~~~~~ fl~~~~~oo.'.~~~~~~~~WdFr~~b. B..MForo4a o SmI 10, g r's,.aGo nono fd*. Colomb..Inero ionl buIdrie PARA0UAY 50 GanO* SS a 0 / tS is. 'o Frsotrr gai hrnauo a0 l iangat F.,.o,a _ Sto d0o do 20FLRANPOI Cisno'flon ma doa aaS In otS A* to. 0155,5 ~ ~ ~ ~ ~ ~~~~lop PARAGUAY *008H.-OasZ goibi iiS 1. _p,S Sebosl,ao L- I- Sw 059*0 ~ ~ rw~p, wFin i Amngn ) ' Siro Grondy 1'0 S_ Si .doranhf S0- 40-pabo DS GOIANIN SF A P -' Font For6 do ~ c'mosdonSu Aoicro o OurSnos t I ~ I' Fo.nIoGr~~~~~~~~~~~~~~ ra~~~~~501c6iO 30 40 0 V S Sabosrtn.60Mofr Pworcm ~~~~~~~~~~~~~~~~~~KILOMETERS Jag O~~~~~~~1 P.o Grand. ? 10~~~~~~~~~~~~~I 290 300 U P U A Y R* Gronde ~~~~~~~~~~~~~~~~~~~~MILES so.I4- NOVEMBER 1986