of The World Bank FOR OFFICIAL USE ONLY /-A 32. Z-D - Report No. 8330-TH STAFF APPRAISAL REPORT THAILAND THIRD HIGHWAY SECTOR PROJECT APRIL 25, 1990 Infrastructure Operations Division Country Department II Asia Regional Office 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 (January 1990) Currency Unit - Baht (B) US$1.00 - B 26 BI1O - US$3.85 FISCAL YEAR October 1 - September 30 UNITS AND MEASURES Metric System ABBREVIATIONS ADB - Asian Development Bank ARD - Accelerated Rural Development BOB - Bureau of the Budget DOH - Department of Highways ETO - Express Transport Organization JICA - Japan International Cooperation Agency LTD - Department of Land Transport MOTC - Ministry of Transportation and Communications MOF - Ministry of Finance MOI - Ministry of Interior NESDB - National Economic and Social Development Board NSC - National Safety Council OECF - Overseas Economic Cooperation Fund (Japan) ONEB - Office of the National Environment Board PD - Police Department PWD - Public Works Department TC - Transport Company VTI - Swedish Road and Traffic Research Institute AL USE ONLI THAILAND THIRD HIGHWAY SECTOR PROJECT Loan and Proiect Summary Borrower: Kingdom of Thailand Amount: US$50.0 million equivalent Terms: 20 years, incluuing a five-year grace period, at the Bank's standard variable interest rate. Project DescriRtion: The basic objectives of the proposed project are to assist the Government in sustaining an efficient road transport system and to continue to support the goals of its Sixth Development Plan including: (a) protection of past investments in the highway sector by concentrating on rehabilitation and maintenance; (b) reduction of road transport costs and improvements in the transport services over the highway system which would, among other things, facilitate transfer of industrial and other economic activity away from Bangkok to smaller cities and rural areas; (c) improvements in road traffic safety; and (d) improvement in environmental control of vehicular air and noise pollution. The loan provides supplementary finance to the Department of Highways (DOH) 1987-91 program, which was appraised under the Highway Sector Project (Loan 2894-TH, approved December 15, 1987). The bulk of the loan would continue financing components of DOH's 1987-91 road development plan. Specific subprojects to be financed under the loan would be selected on the basis of agreed-upon criteria and procedures. Most of the loan proceeds would be used on civil works for rehabilitation and betterment of roads, while other items would include training, equipment and consultant services for road traffic safety, air and noise pollution control, and road transport industry efficiency, part of which will be implemented by the Department of Land Transport (LTD). Risks: The project poxe6 no unusual risks. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. - ii - Estimated Costs:/a Local Foreign Total (US$ Million) DOH's Developmenut Plan " 987-91) Rehabilitation and reconstruction 210.2 210.2 420.4 Improvement of congested roads 219.8 219.8 439.6 Safety program 5.4 11.3 16.7 Interchanges and bridges 30.4 18.3 48.7 New road construction 96.7 79.1 175.8 Upgrading to bitumen standards 186.8 186.9 373.7 Subtotal 749.3 725.6 1.474.9 LTD Component 0.6 3.0 3.6 Total Cost ,749,972.6 1.478. Financing Plan: Local Foreign Total (US$ Million) Government 749.9 249.4 999.3 World Bank Third Highway Sector Loan - 50.0 50.0 Ongo'ng loans 160.2 160.2 Other ongoing and proposed foreign loans - 269.0 269.0 Total 749-9 728.6 1.478.5 Estimated Disbursements: Bank FY 1991 1992 1993 1994 Annual 5.0 20.0 20.0 5.0 Cumulative 5.0 25.0 45.0 50.0 Economic Rate of Return: Over 12% Map: IBRD 22122R /a Inclusive of taxes and duties amounting to about US$63.3 million. - iii - THAILAND THIRD HIGHWAY SECTOR PROJECT Table of Contents Page No. LOAN AND PROJECT SUMMARY .i... . . . . . . . . . . . . . . . . . I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 II. ,DOH PROGRAM (1987-1991) . . ..... . . . . . . . . . . . . . . . 2 A. Program Components and Description . . . . . . . . . . . . . . 3 B. Road Development Plan .... . . . . . . . . . . . . . . . . . 3 C. Financing Plan .... . . . . . . . . . . . . . . . . . . . . 4 D. Institutional Improvements .... . . . . . . . . . . . . . . 5 III. SELECTED SECTOR OBJECTIVES .... . . . . . . . . . . . . . . . . 5 A. Road Traffic Safety .... . . . . . . . . . . . . . . . . . . 5 B. Vehicular Emission and Noise Pollution . . . . . . . . . . . . 6 C. Road Transport Industry Efficiency . . . . . . . . . . . . . . 7 D. Road User Charges .... . . . . . . . . . . . . . . . . . . 7 VI. BANK PARTICIPATION .... . . . . . .. 8 A. Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 8 B. Description of Bank Financed Components . . . . . . . . . . . . 8 C. Cost Estimates and Financing .11 D. Implementation of Bank Financed Subprojects . . . . . . . . . . 12 E. Procurement of Bank Financed Subprojects . . . . . . . . . . . 13 F. Disbursements . . . . . . . . . . . . . . . . . . . . . . . . . 14 G. Monitoring and Auditing .15 H. Project Environmental Impact . . . . . . . . . . . . . . . . . 16 V. AGREEMENTS REACHED AND RECOMMENDATION . . . . . . . . . . . . . . . 16 This report is based on the findings of an appraisal mission, consisting of Lars Nordin (Economist) and Sigfus Sigfusson (Highway Engineer), which visited Thailand in November 1989. - iv - TABLES PaLe No. 1.1 National and Provincial Highway Networks (1965-88) . . . . . 18 1.2 Summary of Government Expenditures on Road Works, 1980-88 19 1.3 Bank Involvement in the Transport Sector . . . . . . . . . . 20 2.1 DOH's Total Expenditure Program, 1987-91 . . . . . . . . . . 21 2.2 DOH's Development Plan, 1987-91 . . . . . . . . . . . . . . 22 3.1 Summary of Government Revenues from Road Users, 1980-88 . . 23 4.1 Summary of Cost by Component . . . . . . . . . . . . . . . 24 4.2. Summary of Cost by Type of Expenditure . . . . . . . . . . . 25 4.3 Schedule of Estimated Disbursements . . . . . . . . . . . . 26 ANNEXES 1. Outline Action Plan to Improve Road Traffic Safety . . . . . 27 2. Outline Action Plan to Reduce Vehicular Emission and Noise Pollution .... . . . . . . . . . . . . . . . . . 28 3. Outline Action Plan to Improve Road Transport Indi.stry Efficiency . . . . . . . . . . . . . . . . . . . . 30 4. Selected Documents and Data Available in the Project File . 32 MAP: IBRD 22122R ,. TRAILAND THIRD HIGHWAY SECTOR PROJECT I. INTRODUCTION 1.1 Despite large transport sector investments over the last twenty years (particularly in road infrastructure), Thailand's rapid economic development continues to put severe and increased strains on the country's transport system. The proposed Third Highway Sector Project provides further support to the Royal Thai Government's expanded Sixth Development Plan (1987-1991) for national and provincial roads to cater to these increased demands. 1.2 Today, all provinces are interlinked with a good interregional and interprovincial transport network and transport services have penetrated the majority of previously remote rural areas. The country's transport system is multimodal and a competitive transport industry has developed. Road is the dominant mode with about 80% of all freight ton-km and 90% of all passenger-km. In 1988, the public road network consisted of approximately 161,800 km. Of these, 16,700 km were national, 33,200 km provincial (Table 1.1) and 111,900 km rural. 1.3 The Department of Highways (DOH), under the Ministry of Transport and Communications (MOTC), is a mature and efficient institution and by far the most important road agency. It is responsible for all national and provincial roads, which account for almost 80% of total road expenditures (Table 1.2). The 73 provinces and municipalities, under the Ministry of Interior (MOI) and assisted by a number of central government agencies, chiefly the Accelerated Rural Development Department (ARD) and the Public Works Department (PWD), are generally responsible for rural roads. 1.4 The Goveriiment's goals for the transport sector focus on improved eff'cieney through increased utilization of assets, increased self-reliance of state enterprises, and privatization. Specific highway subsectoral goals include a proper balance between investment, rehabilitation and maintenance expenditures, reduced road traffic congestion, increased road traffic safety, improved environmental controls of vehicular emissions, and a more efficient road transport industry. 1.5 The proposed project would be the Bank's 23rd transport sector project since assistance to the sector started in 1950 with a railway loan. Of the previous 22 loans amounting to a total of US$744.65 million, eleven loans of US$549.6 million (74% of total) have been for highways, five loans of US$120.30 million (16%) for ports and v-aterways and six loans of US$74.75 million (10%) for the railways (Table 1.3). 1.6 Past highway projects have been successfully implemented by DOH, often on time and below budget. The Project Completion Report (No. 4476) for the Fifth Highway Project (Loan 870-TH) shows a higher economic rate of return of the project than forecast during appraisal (20% vs 16%) despite some cost overruns and delays due to steep price rises from late 1973 and - 2 - lack of adequate price adjustment provisions in contracts. The Project Completion Report (No. 6205) for the Sixth Highway Project (Loan 1519-TH) indicates that all project objectives were achieved. Although there was a slight cost underrun, traffic growth was also less than expected resulting in an economic rate of return of the project of 20%, which was less than the 29% forecast during appraisal, but still fully satisfactory. Together, the two projects achieved important institution building and development of local consultauts and contractors. The Project Performance Audit Report (No. 8447) for the Provincial Roads Project (Loan 2035-TH) specifically recognizes DOH's strong performance in carryin- out its road program. The Second Provincial Roads Project (Loan 2311-TH) has been substantially completed with only minor implementation delays. 1.7 Bank support for the Government's Highway Development Plan (1987- 1991) was started under the Highway Sector Project (Loan 2894-TH, approved on December 15, 1987) and continues under the Second Highway Sector Project (Loan 3008-TH, approved on December 13, 1988). After a somewhat slow start, caused by temporary shortages of construction material leading to rebidding of certain contracts, work is now accelerating under both loans. 1.8 The proposed third highway sector loan together with the previous two loans and other foreign financing (para. 2.5) would complete the financing plan for the Government's 1987-91 Road Development Plan. In addition, the project continues to strengthen the policy dialogue with the Government, as it will address ways to improve the efficiency of the road transport industry. It will also widen the support for increased road traffic safety (para. 3.4) started under Loan 2894-IH and for reduction in air and noise pollution (para. 3.7) started under Loan 3008-TH. Because of these recent loans, the present appraisal report is abbreviated and focuses on the additions to the development plan. II. DOH PROGRAM (1987-1991) 2.1 DOH's five year expenditure program 1987-1991 (Table 2.1), which is the basis for the highway sector projects strikes a balance between maintenance and rehabilitation on the one hand and upgrading and new construction on the other, while taking into consideration available financial resources. DOH regards the program as fixed with regards to its total physical targets but flexibility is provided for adjusting annual targets in line with changes in fiscal and economic conditions and also for adjusting the time required to achieve the targets. It is presently expected that the program, designated for 1987-1991, will require an additional two years to compieLe !Ls ta'gts. ThG proposed loa., is bascd on: (a) DOH'S development plan covering the period 1987-1991, subject to annual updating and review; - 3 - (b) agreed criteria, procedures and related organizarional arrangements for selection, engineering and implementatior. of individual subprojects included in DOH's work program; and (c) appropriate measures to address selected sectoral issues concerning road traffic safety, vehicular emission and noise pollution and road transport industry efficiency. During negotiations the level. composition. and final time-frame of this orogram would be reviewed and agreed upon. A. Program ComDonents and Description 2.2 DOH's actual and estimated expenditure levels are central to defining the framework of the Bank's involvement in the sector. The evaluation of DOH's highway expenditure program for 1987-1991 is presented below and detailed in Table 2.1. DOH's ELghvay Expenditure Program (Millions of current Baht) 1987 1988 1989 1990 1991 1987-91 (Actual) (Actual) (Budget) (Budget) (Estimate) Total Road Development Plan 3,555.7 3,110.8 6,466.0 9,836.4 15,379.4 38,348.3 Hishvay Maintenance 2,448.0 2,813.2 2,707.1 3,446.9 3,706.0 15,121.1 Secitrity and nonprogrammed roads 1,594.1 2,557.4 2,112.2 3,196.8 3,377.3 12,8z7.9 Administration 1,940.6 2,025.2 2,057.2 2,384.9 2,384.9 10,792.8 Total 9.538.4 10.506.6 13.342.5 18.865.0 ;4.847.6 77.100.1 The program is considered realistic, gi-en DOH's record in preparation and implementation of work programs, the Bureau of the Budget's current outlook on public revenues, the National Economic and Social Development Board's (NESDB) assessment of -riorities among and within the sectors, the Ministry of Finance's (MOF) current prospects for external borrowing, and MOTC's views on previous and projected funding allocations and taking expected extensions into account. 2.3 Given the age structure, pavement condition and increasing traffic volumes on the network, future DOH budgets will be concentrated on maintenance, rehabilitation and capacity expansion of existing routes rather than on construction of new routes. The 1987-91 highway program reflects these realities and continues the efforts towards maintenance and rehabilitation begun in the Fifth Development Plan (1982-1986). B. Road Development Plan 2.4 DOH's Sixth Road Development Plan accounts for some 50% of DOH's highway expenditure program for the plan period. Under the Plan, summarized - 4 - below and detailed in Table 2.2, DOH is carrying out the following: rehabilitation of some 6,800 km of paved roads; capacity increase through construction of additional lanes for about 870 km of congested roads, some of which will be operated as toll roads; a safety program through improving conditions in about 400 hazardous road section_.; construction of interchanges in about 11 locations; construction of some 350 km of new road links; and upgrading 3,200 km of gravel roads to bitumen standard. The physical targets are consistent with resource projections and implementation capacity. Suinary of DOB's Development Plan, 1987-1991 (Current Baht million) Year 1987 1988 1989 1990 1991 Total Actual Actual Budget Budget EstLmate 1987-1991 Rehabilitation and reconstruction 1,594.8 1,157.1 1,846.4 2,448.4 3,882.5 10,929.2 Improvement of congested roads 451.6 487.6 2,020.6 3,450.7 5,019.9 11,430.4 Upgrading to bitumen standard 1,300.2 1,064.9 1,592.9 2,376.2 3,383.4 9,717.6 New roae construction 167.1 192.0 554.7 1,169.0 2,487.3 4,570.1 Inter,.-y'-,a and brLdges 42.0 89.2 271.4 333.2 531.3 1,267.1 Safet- __ram 0.0 120.0 180.0 58.9 75.0 433.9 Total 3,555.7 3.110.8 6.466.0 9.836.4 15.379.4 38,348.3 C. Financing Plan 2.5 The Government's budgetary allocations make up about 68% of DOH's planned investments. The remaining funds required would be obtained from foreign sources, including IBRD, the Asian Development Bank (ADB) and the Overseas Economic Cooperation Fund (OECF) of Japan, and would be applied mainly to capital expenditures under the development plan. The table below summarizes the financing sources for the development plan during 1987-91. Baht million US$ million Government Sources 25,967.1 998.7 /a World Bank Third Highway Sector Loan 1,222.0 47.0 /a World Bank ongoing loans 4,165.2 160.2 Other foreign. sources ongoing and proposed loans 6,994.0 296.0 Total 3o.340.3 ;.474.9 La Excluding US$3.6 million to be used by the Department of Land Transport (LTD) of which US$3.0 million will be from the pro,iosed loan of US$50.0 million and the remainder from Government Sources. - 5 - 2.6 Should DOH, in the future, have to meet its highway requirements with less budgetary resources than those presently planned, reduction in the overall size of the program would first be effected by reducing the new construction and pav4ng components through postponement or scaling down of subprojects. To ensure the program's continued relevance and adequacy, agreements were reached during negotiations regarding (i) the financing plan for the program; (ii) an annual review of program implementation; and (iii) the priority of maintenance and rehabilitation over new construction of roads during periods of resource constraints. D. Institutional Improvements 2.7 To ensure smooth execution of the DOH program and efficient management of the sector, specific action programs were developed during the preparation of the Bank's Highway Sector Project (Loan 2894-TH). These programs are now under implementation with measures being taken to: (i) utilize the pavement management system nationwide; (ii) complete introduction nationwide of DOH's equipment revolving fund systew; (iii) strengthen DOH's training system; (iv) control truck overloading; and (v) improve road safety. These programs will continue under this project, as will the environmental action program aimLed at improving existing vehicular air and noise pollution control measures agreed under the Second Highway Sector Project (Loan 3008-TH). In addition, the existing action programs for road traffic safety and vehicular emission control will be further developed and a new action program will be designed to improve road transport industry efficiency (paras. 3.1-3.9 and Annexes 1-3). III. SELECTED SECTOR OBJECTlVES A. Road Traffic Safety 3.1 Road traffic accidents are a serious and increasing socioeconomic problem in Thailand. Accident records are, however, neither accurate nor complete. Records for 1987 show that road traffic accidents caused 8,723 fatalities and another 612,461 persons were injured. Although the problem has been recog..ized for several years comprehensive, coordinated and effective measures for accident prevention have yet to be taken. Studies 1/ carried out since 1982 have identified causes and proposed countermeasures but litcle has been implemented of the recommendations, apart from an extensive program of "blackspot" elimination (road improvements, traffic signals and signs, guardrails, bicycle lanes, pedestrian bridges), which DOH is presently carrying out at a cost of some US$12 million (under the Highway Sector Project). Furthermore, the National Safety Council of Thailand (NSC), in a joint affort w5th th c Ro-'d ar.d Traffic RPcearch institute (WITT, is about to start preparing an action plan to improve the road traffic accident data system (collection, storage, processing and analysis of records) and initiate traffic safety r_cearch in Thailand. / Traffic Law Enforcement and Road Safety Study, 1982 (ADB financed) Traffic Safety Plan for Roads in the Kingdom of Thailand, 1985 (JICA). . 6 - 3.2 Much more is needed, however, if tangible results are to be achieved. Work on elimination of nblackspotsu and improvement of the road t:-affic infrastructure and environment needs to be continued. Although the laws and regulations affecting traffic safety are considered relatively adequate, their enforcement needs to be strengthened. The experienice with vehicle tesding and with driver training, testing and licensing needs to be reviewed and recommendations for improvements prepared. Road safety awareness campaigns need to be designed and targeted. Finplly, the action plan for an accident data rystem, to be prepared with the a:,jistance of the Swedish VTI, needs to be imp'lemented. 3.3 One of the greatest problems in efforts to improve road traffic safety is the poor coordination among the many government and ion-government agencies concerned with the various aspects of safety. The organization in Thailand which coordinates traffic safety activities is NSC, which is concerned with public safety in general and handles road traffic safety through one of its five sub-committees. NSC is nct yet, however, a formal government agency and those taking part in its activities do so in addition to or in direct connection with their professional work. The aim should be to develop NSC into an active and effective policy making and coordinating body with its own full-time secretariat with multidisciplinary staff and a special budgat. 3.4 The project would include an action plan, an outline of which appears in summarized form in Annex 1, to serve as a guide towards the preparation and subsequent implementation of a national road traffic safety program. It would include strengtnening of vehicle inspection and enforcement of safety standards and driver training as well as the general promotion of the use of safety features such as seat belts and helmets. During this preparatory phase, the project would assist in financing support for safety improvement activities such as civil works (for "blackspot" elimination), equipment (for accident data collection, storage and processing, vehicle testing and inspection, traffic management, law enforcement and education) and for consultancy services as and if requir'd to develop And initiate the program. During project appraisal, the series of activities forming the basis for the action plan were discussed. The action plan would be further developed by the. agencies concerned with and responsible for each activity or subactivity and coordinated by the Traffic Safety Council within NSC into a comprehensive and consistent plan. During negotiations, an agreement was reached that the action plan would be submitted to the Bank for comment and completed by December 30, 1990. B. Vehicular Ermission and Noise Pollution 3.5 Vehicular air and noise pollution has become an increasingly serious problem in Thailand through a combination of the rapidlv increasing vehicle m fleets and poorly maintained engines. The problem has taken on crisis proportions in Bangkok in the last few years but is also increasingly worrisome in other urban areas. 3.6 The Office of the National Environment Board (ONEB), which monitors ambient air quality in various locations in and around Bangkok and in other urban areas, has established acceptable levels for major emission pollutants (e.g. HC, CO and black smoke) and the Cabinet has approved the corresponding guidelines. It is now up to the implementing government agencies to establish the necessary regulatory instructions and provide the necessary resources to monitor and enforce compliance with the approved emission and noise standards. 3.7 In order to address these concerns and to achieve maximum compliance with the established standards, it is necessary to develop and adhere to an inter-agency action plan, an outline of which appears in summarized form in Annex 2 and which would be among the priority activities of the proposed project. The action plan should be further developed by the agencies concerned with and responsible for each activity or subactivity and coordinated by ONEB into a comprehensive and consistent plan. During negotiations, an agreement was reached that the action plan would be submitted to the Bank for comment and completed by December 31, 1990. C. Road Transnort Industry Efficiency 3.8 The trucking and bus services in Thailand are normally considered adequate and quite competitive at least on major routes. This does not mean, however, that the industry cannot be further improved. Indeed, recently completed and ongoing studies of both trucking and bus services have established a long list of recommendations aimed at cutting through bureaucratic obstacles to more efficient operations. It is important that these recommendations be carefully considered and that a phased action plan be developed, which takes into account the difference in political acceptability of the various recommendations while working towards an economically sound system. 3.9 The action plan, an outline of which appears in summarized form in Annex 3, would be a major focus of the proposed project. The action plan would be further developed by the agencies concerned with and responsible for each activity or subactivity and coordinated by MOTC's Office of the Permanent Secretary into a comprehensive and consistent plan. During negotiations, an agreement was reached that the action plan would be submitted to the Bank for comment and completed by December 31, 1990. D. Road User Charges 3.10 According to a DOH Study on Road Revenues and Expeaditures 1977-1986, Government expenditures on road works have been covered since 1979 by reveniues collected from road user charges levied. An analysis of revenues collected in the form of road user charges indicates that the greatest proportion is collected by the Excise Duties Department, which is responsible for oil and fuel tax collection, which amounts to about half of total revenues collected. Of this, gasoline tax accounted for 59%, diesel tax 33%, and other taxea 8%. An update of revenues collected up to 1988 is given in Table 3.1. 8 - 3.11 In terms of user costs, as opposed to user charges, the charges levied on motorcycles and automobiles are more than sufficient to cover road use. However, the charges levied on trucks, particularly heavy trucks, are insuff-cient, allowing these vehicles to pay less than the actual cost of road use, in effect creating a Government subsidy for truck use. Proposals have - been made to increase license fees for heavy trucks to cover their road usage costs, but because of political sensitivity related to the raising of truck charges, the increases have not yet taken place. This matter will be addressed as part of the action plan for improving road transport industry efficiency (para. 3.9). VI. BANK PARTICIPATION A. Objectives 4.1 The Government maintains a policy of protecting past investments in roads by emphasizing maintenance and rehabilitation. The Government has also recently taken actions to develop and implement three comprehensive action programs for further improvements in: (a) road traffic safety; (b) the environment by reducing pollution due to vehicular emissions and noise; and (c) the efficiency of road transport of freight and passengers. The proposed loan, a logical continuation of the Bank's involvement in the '-ctor, will assist Government in these efforts. 4.2 The main objective of the highway sector projects is to assist the Government in further improving the overall efficiency of the highway sector. Together with Loans 2894-TH and 3008-TH, the proposed loan would support DOH's highway development plan for interurban (national and provincial) roads which aims at: (a) improving the quality of interurban roads (by focussing on maintenance and rehabilitation); (b) relieving congestion (by improving capacity); (c) improving road traffic safety; (d) reducing environmental pollution from vehicle emissions and t-affic noise; and (e) improving policies on road transport and road use. P. Description of Bank Financed Components General 4.3 The project includes: (a) specific subprojects of DOH's road development plan selected annually on the basis of procedures and economic and technical criteria already agreed under Loan 2894-TH; and (b) equipment, - 9 - technical assistance, studies and training to assist in the preparation and implementation of the three action programs (para. 4.1). Work programs of the development plan are defined in terms of annual expenditures and physical targets and described in Chapter III. Components to be financed under the project would include rehabilitation/improvements of interurban roads and bridges; measures to improve road safety; measures to reduce air, and noise pollution and measures to improve road transport industry efficiency. Road and Bridges Rehabilitation/Imxrovements 4.4 Roadworks. The works will be carried out in various parts of the country where: (a) pavements are seriously deteriorated; and (b) earth and gravel roads need upgrading by simple methods such as bituminous surface treatment. Works will be designed and carried out in accordance with star.dards acceptable to the Bank and would include improvements of side and crnss drainage, widening, and strengthening of pavements and shoulders. - Pavements will be strengthened by bituminous overlays designed on the basis of observed and measured existing condition and traffic volumes and estimated loadings projected for the next seven years.- Works will be carried out on existing alignments. 4.5 Bridgeworks. The works will be carried out on bridges in various parts of the country that have become bottlenecks for one or more of the following reasons: (a) severe load limitations because of low initial design loads or advan,ed structural deterioration; (b) width restrictions; or (c) hazardous hydrological conditions. Works would be designed to agreed standards and would comprise as required, rehabilitation, strengthening, widening or full replacement. 4.6 Design and SuRervision of Road and Bridgeworks. Some 2,200 km of roadworks and 1,200 m of bridges need to be designed under the project. About one third of these works will be designed by DOH's own staff and the remainder, requiring some 750 staff-months, by local consultants. Supervision of road and bridge works will be carried out by DOH staff supplemented by 700 staff-months of local consultants and some 100 staff-months of foreign consultants for overall coordination. Road Traffic Safety 4.7 Traffic safety was first addressed under Loan 2894-TH and is being given increased importance by the Government and in the media. The road safety component would assist Government in expanding ongoing efforts and in preparing NSC's comprehensive action program and its subsequent implementation for improving road traffic safety (para. 3.4), as further outlined in Annex 1. 2/ Traffic loadings for 15 years are also checked and the initial (7 year) thickness determined such that the additional pavement thickness required for carrying the traffic from yea~r 7 through year 15 is within a practical range for asphaltic concrete overlays. - 10 - The project would provide funds for civil works, equipment and consultancy advisory services. 4.8 Civil Works. The works would be a continuation of measures taken under Loan 2894-TH to: eliminate known blackspots b- improving horizontal and ,-ertical geometry, lengthen sight distances, improve road surface friction, improve existing and erect new traffic signs and signals and guard rails, separate traffic streams (including pedestrian overpasses) and improve traffic management at intersections. The works will be desligned and implemented by DOH. 4.9 Equipment. To enhance accident reporting and analysis, the Police Department (PD) needs specialized equipment for data collection, storage and processing as well as equipment for enforcement of traffic regulations (for instance for speed measurements, communications, measurements of alcohol consumption and mobile static and dynamic weighbridges). LTD also needs equipment for, inter alia, vehicle testing and inspection. A list of equipment will be agreed with the Government when review of needs has been carried out as part of the preparation of NSC's action program. 4.10 Advisory Services. The advisory services would assist NSC and concerned agencies to develop and start implementing the action program and train staff as required for those purposes. Terms of reference would be agreed as and when the need for services is identified in the process of developing and implementing the action program. It is estimated that expert assiftance would require some 20 staff-months of foreign and 25 staff-months of local experts' assistance. Reduction of Air and Noise Pollution 4.11 The component would assist Government in controlling air and noise pollution within agreed standards and especially ONEB in the preparation of the comprehensive action program and its implementation as further outlined in Annex 2 (para. 3.7). The project would provide funds for procurement of equipment and consulting (advisory) services as outlined below. 4.12 EquiRment. To expand ongoing efforts to enforce pollution standards, LTD and PD need specialized equipment for m3nitoring pollution and inspecting vehicle emissions and noise generation. A list of equipment will be agreed when review of needs has been completed as part of the preparation of ONEB's action programs. 4.13 Advisory Services. These services would assist ONEB and concerned agencies to develop and implement their respective action programs and train staff for implementation. Terms of reference would be agreed as and when the need for services is identified in the process of developing and implementing the action program. It is estimated that some 15 staff-months of local and 30 staff-months of foreign experts' assistance would be required. - 11 - Road Transgort Industry Efficiency 4.14 The component would provide for advisory services to assist MOTC and concerned agencies to develop and star': implementing an action program for improving road transport industry efficiency as recommended in recent studies and further outlined in Annex 3 (para. 3.9). This would include the drafting of changes in rules and regulations for road user charges, vehicle weight and dimensions, vehicle types and axle configurations, privatization of certain services, and the review and possible revision of the road transport act and other related regulations. Terms of reference would be agreed as and when the need for services is identified in the process of developing and implementing the action program. It is expected that about 30 staff-months of local and 15 staff-months of foreign experts' assistance will be required. C. Cost Estimates and Financing 4.15 The foreign exchange component for civil works is estimated at about 50% assuming that execution will be mostly by local contractors as has been the case in recent years. For consultancy services the foreign exchange component is estimated at about 30% for design, 50% for supervision and 70% for technical assistance. 4.16 The proposed loan of US$50.0 million together with the previous two highway sector loans would finance about 13% of the total cost of US$1,474.9 million of DOH's 1987-91 development plan. The first table below summarizes the cost of the various components to which the Bank loan would be applied (details in Table 4.1) and the second table summarizes the same cost by type of expenditure (details in Table 4.2). The allocation shown is tentative and funds could be transferred between categories if year-to-year needs change. - 12 - Cost in US$ million Components Local Foreign Total Foreign Road and Bridge Rehabilitation/Improvement 37.80 36.60 74.40 49 Road Traffic Safety 4.90 5.54 10.44 53 Pollution Control 0.11 3.25 3.36 96 Road Transport Industry Efficiency 0.09 0.21 0.30 70 Total 42.90 45.60 8i.Q 52 Cost in US$ million Type of Expenditure Local Foreign Total Foreign Civil Works 38.50 38.50 74.00 50 Equipment - 3.50 3.50 100 Consultancy Services and Training 4.40 3.60 8.00 45 Total _42.90 | 45.60 88.50 52 D. Implementation of Bank Financed SubDrojects 4.17 As for the previous two highway sector projects, Loans 2894-TH and 3008-TH, the Ministry of Transport and Communications (MOTC) will be responsible for executing most of the project through its Department of Highways, while its Department of Land Transport (LTI)) will execute parts of the components for road traffic safety and vehicular emission control. Work on the three action plans (Chapter III) wolild be carried out by the respective agencies concerned and coordinated by the Traffic Safety Council, ONEB and the Office of the Permanent Secretary of MOTC, respectively. 4.18 DOH and LTD will submit annually a list of subprojects to be agreed with the Bank. All subprojects of civil works for roads and bridges to be financed under the project (except for minor works related to road traffic safety) will be included in DOH's annual budget. Civil works subprojects would have a minimum economic rate of return of 12%. During negotiations, it was agreed that the evaluation methodology used under the previous two highway sector projects would not be changed without consultation with the Bank and that no road work would be implemented for which the economic return is less than 12%. - 13 - 4.19 Project supervision will be coordinated with ADB and OECF with regards to the overall implementation of the civil works pzogram. The Supervision Plan will be prepared during the start-up mission for the project and is expected to require st-bstantial specialist input, above the normal engineering and economic stalf resources, in particular, for assisting with the implementation of the three action plans. In total, it is expected that some 36 staff-weeks of supervision effort would be required during the project period, including the normal engineering and economic staff resources, with a somewhat heavier concentration at the beginning of the project implementation. E. Procurement of Bank Fiianced Subxroiects 4.20 Procurement would be carried out as shown in the table below: Procurement Methods Project element ICB LCB Other Total Cost - ----------- US$ million------------ Civil works Rehabilitation/Improvements/ Replacements 67.0 0.4 - 67.4 (33.5) (0.2) - (33.7) Road Traffic Safety Improvements - 9.6 - 9.6 (4.8) - (4.8) EquiRment 3.5 - - 3*5 (3.5) - - (3.5) Consultants' Services and Training - - 8.0 8.0 - - (8.0) (8.0) Total 70.5 L° 1.0 8.0 88.5 (37.0) (5.0) (8.0) (50.0) Notes: (a) Covers only components financed by the proposed loan, based on initial tentative allocations. (b) Figures in parentheses arE the respective amounts financed by the Bank loan. 4.21 Except for minor works like those for road traffic safety (estimated to cost less than US$0.3 million each with an aggregate total value of US$10 million), civil works financed by the Bank would be carried out under contracts procured on the basis of ICB procedures in accordance with Bank guidelines. - 14 - 4.22 Prequalified contractors will be allowed to bid on any contract or group of contracts for civil works but will be eligible for awards only up to the value of works for which they are prequalified. Prequalification will be carried out annually with invitations issued in accordance with the Bank's guidelines. 4.23 Small civil works contracts exempt from ICB procedures (para. 4.21) will be procured under LCB procedures acceptable to the Bank. Interested foreign contractors will be allowed full participatio.t and will not be required to register the firm in the provinces where they want to place bids. 4.24 Procurement of all civil works contracts of US$4.0 million and above will be subject to prior review by the Bank, which is expected to cover 70% of estimated total contract values. 4.25 Equipment will be procured on the basis of ICB except for minor items or groups of items estimated to cost less than US$200,000 per contract, up to an aggregate amount for all contracts not to exceed US$1.0 million, which may be procured on the basis of international and lonal shopping by obtaining at least three quotations from foreign and/or local suppliers. Items should be grouped to the extent possible. Procurement of equipment with contracts estimated to cost US$200,000 and above will be subject to prior review by the Bank, which is expected to cover 80% of estimated total contract values. In the evaluation of bids, domestic price preference may be granted. 4.26 Consultants will be employed in accordance with the Bank's Guidelines for use of Consultants. All contracts will ba subject to prior review by the Bank. F. Disbursements 4.27 Disbursement from the loan will be made against applications based on contracts for subprojects eligible for Bank financing as follows: (a) Civil Works. 50% of total expenditures; (b) Goods. 100% of foreign expenditures; 100% of local expenditures (ex-factory cost); and 80% of local expenditures for other items procured locally; and (c) Consultant Services and Training. 100% of total expenditures. 4.28 To facilitate disbursements, the project would use the Government's established inte:nal revolving funds system which enables the Controller General's Department to advance funds from its own resources to line agencies for expenditures in both local and foreign currencies. When project expenditures under the internal revolving fund reach $50,000, the Controller General's Department will batch the withdrawal applications and submit these to the Bank for reimbursement. Disbursements for civil works and - 15 equipment contracts costing less than US$100,000 per contract and disbursement for training would be made against Statement of Expenditures (SOE). 4.29 A schedule of estimated disbursements (Table 4.3) has been prepared on the basis of a tentative implementation schedule prepared by DOH. The projected disbursement profile for the proposed Bank participation in the program is broadly in line with DOH's current performance. It is expected that loan disbursements will be completed in about four years because the review and approval of contracts has been streamlined to reduce delays. The Closing Date of the loan will be December 31, 1994. G. Monitoring and Auditing 4.30 Most contract administraticn under the proposed loan would be the responsibility of DOH and LTD. These agencies would keep records of all procurement documents (including bids and proposals and their evaluation and contract awards), and official decisions on each agreed subproject showing accumulated expenditures, monthly payments and other administrative data and would prepare regular reports with this information as instituted under the Highway Sector Project (Loan 2894-TH). The Bank would reserve the right to inspect and review the documentation maintained on individual contracts by the agencies and be sent copies of documents on request. 4.31 The annual consultations on the highway program and budget and on the action programs would provide the major opportunity for reviewing progress of the development plan for national and provincial roads and the implementation of the proposed project. Monitoring and supervision of the proj-ct will focus on the following: (a) The evolution and subsequent confirmation of the annual programs and their financial and physical targets for the road development and maintenance programs; (b) The progress made in pursuing the institutional and sectoral objectives of the project included in the action programs for road traffic safety, pollution control, and road transport industry efficiency; and (c) The progress of implementation of Bank-financed subprojects. Also, during negotiations, assurances were obtained from the Government that: (a) the implementing agencies would keep separate accounts for the proposed project; (b) the project accounts, including documentation for statement of expenditures (SOEs), would be audited annually by independent auditors acceptable to tne Bank; and - 16 - (c) the detailed audit reports would be submitted to the Bank within nine months after the end of each fiscal year. In addition, the implementing agencies will prepare and furnish to the Bank, within aine months after completion of the project, a completion report on the execution and initial operation of the project. H. Proiect Environmental ImRact 4.32 The road works in the three-year plan are nor expected to have any adverse environmental effects. Before approval, DOH subjects each road project to an environmental assessment with regards to encroachment, impairment, erosion and siltation, aesthetics, noise and vibration, pollution, hazards and construction problems. Works are mostly improvements of roads and bridges, including improved side and cross drainage, widening and strengthening of shoulders and pavements, overlays on old pavements, and bituminous surfacings on gravel roads, all of which will improve conditions along the road through reducing dust and noise and erosion because of flooding. As most works will be carried out on existing alignments, requirements for additional land are minimal and no resettlement is expected to be needed. In addition, the pollution control component would directly contribute to improving air quality and reducing noise pollution in the country and particularly in Bangkok. V. AGREEMENTS REACHED AND RECOMMENDATION 5.1 During negotiations, the following matters were reviewed and agreed upon: (a) the level and composition of DOH's 1987-91 program (para. 2.1); (b) the financing plan for the program (para. 2.6); (c) an annual review of program implementation (para. 2.6); (d) the priority of maintenance and rehabilitation over new road construction during periods of resource constraints (para. 2.6); (e) completion and submission to the Bank of action plans for road traffic safety (para. 3.4), vehicular emission and noise pollution (para. 3.7) and road transport industry efficiency (para. 3.9) by December 31, 1990; and (f) reconfirmation of the selection criteria for the road works to be included in the investment program (para. 4.18). - 17 - 5.2 Subject to the above, the project provides a suitable basis for a Bank loan of US$50 million equivalent to the Kingdom of Thailand, for a period of 20 years including a grace period of 5 years, at the Bank's standard variable rate. THAILAND THIRD HIG8WAY SECTOR PROJECT National And Provincial Hlshwav Networks (1965-86) (Rllometers) Conces- slon NatLoial Liahwavs Provincial BLhwa,s Total Highways Total high- Opened to traffic la UnLmproved Opened to traffic la Unimproved Opened to traffic la Unimproved Grand ways Paved Gravel Total lb Total Paved Gravel Total lb Total Paved Gravel Total hlghways lb Total 1965 15 5,046 4,436 9,482 4,600 14,082 405 2,389 2,794 5,475 8,269 5,451 6,825 12.276 10.075 22,351 1970 15 8,620 1,781 10,401 4,284 14,685 1,479 4,413 5,892 11,426 17,31& 10,099 6,194 16,293 15,710 32,003 1975 15 11.840 818 12.658 2,776 15,434 3,396 4,034 7,430 15,447 22,8)7 15,236 4,861 20,088 18,223 38.311 1976 - 12,052 752 12,804 2,591 15,395 4,276 4,601 8,877 14,857 23,734 16,328 5,353 21,681 17.448 39,129 1977 - 12,218 722 12,940 1.162 14,102 4,920 5,022 9,942 14,200 24.142 17,138 5.744 22,882 15,362 38,244 1 1978 - 12,763 547 13,310 1,555 14,865 6,209 5,547 11,756 15,220 26,9to 18,972 6,094 25,066 16,775 41,841 - 1979 - 13,613 207 13,S20 923 14,743 8,129 5,549 13,678 14,880 28,558 21,742 5,756 27,498 15,803 43,301 1 1980 - 13,733 !no 13,893 980 14,873 8,670 5,587 14,257 14,709 28,966 22,403 5,747 28,150 15,689 43,839 1981 - 14,054 121 14,175 1,081 15,256 10,661 5,180 15,841 12,819 28,660 24,715 5,301 30,016 13,900 43,916 1982 - 14,249 100 14,349 1,246 15,595 11,517 5,136 16,653 11,708 28,361 25,766 5,236 31,002 12,954 43,956 1983 - 14,980 92. 15,072 479 15,551 13,036 5,040 18,076 10,638 28,714 28,016 5,132 33,148 11,117 44,265 1984 - 14,980 92 15,072 511 15,583 13,036 5,040 18,076 10,875 28,951 28,016 5,132 33,148 11.386 44,534 1985 - 15,132 86 15,218 483 15,701 17,124 4,893 21,017 8,810 29,457 31,256 4.979 36,235 8,925 45,337 1986 - 15,282 104 15,386 1,137 16,523 17,718 4,620 22,338 7,687 30,025 33,000 4,724 37,724 8,824 46,548 1987 - 14,833 79 14,912 908 15,820 19,032 5,425 24,457 7,534 31,991 33,865 5,504 39,369 8,442 47,811 1988 - 15,822 77 15,899 799 16,698 20,052 5,843 25,895 7,275 33,170 35,874 5,920 41,794 8,074 49,868 la Roads which receive the normal allocation of maintenance funds. lb Roads which are under constructlon or being constdered for improvement. Source: Department of Highways. January 1990 _ IE I EM *EEhI THAILAND THIRD HIGHWAY SECTOR PROJECT Summarv of Government Exoenditures on Road Works. FY8O-88 (Baht million) Government agencies FY80 FY81 FY82 FY83 FY84 FY85 FY86 FY87 FY88 DOB 7,210.3 8,185.0 8,892.0 9,201.2 9,088.2 8,968.5 8,928.2 9,538.4 10,506.6 Toll Roads, DOB 4.3 6.6 46.7 31.5 30.2 22.8 13.2 35.4 59.7 Public Works Department 209.4 217.9 227.7 225.6 219.1 233.0 243.8 497.9 6C6.6 Irrigation Department 249.5 254.3 280.3 259.8 325.4 232.2 291.8 206.5 228.6 Office of Accelerated Rural Development 773 3 997.5 665.7 744.2 804.7 835.0 796.0 848.7 1,012.8 Military Mobile Development Unit 84.7 144.8 279.8 250.0 206.0 200.2 206.8 227.5 1 250.0 /1 Community Development Department 4.9 3.8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. Public Welfare Department 45.7 46.2 46.3 47.1 36.3 42.7 43.6 24.8 23.1 Bangkok Metropolitan Administration (BMA) 1,063.6 900.3 992.9 730.3 987.1 989.1 1,236.7 1.427.7 1,451.8 Iotal 9.645.7 10.756.4 11.361.4 11.489.7 11.697.0 11.523.5 11.759.1 12.806.9 14.139.2 Source: Department of Highways. March 1990 - 20 - Table 1.3 THAILAND THIRD HICHWAY SECTOR PROJECT Bank Involvement in the Transport Sector Loan Board Loan Cancelled Project no. date amount amount ($ mln) ($mln) Highways National Highway 341 05/29/63 35.00 13.13 Second Highway 455 06/09/66 36.00 4.94 Third Highway 535 05/21/68 29.00 6.12 Fourth Highway 626 06/17/69 23.00 6.24 Fifth Highway 870 12/05/72 28.60 0.80 Six Highway 1519 02/14/78 110.00 7.43 Bangkok Traffic Management 1638 12/12/78 16.00 8.41 Provincial Roads 2035 07/07/81 35.00 5.50 Second Provinc'al Roads 2311 06/09/83 100.00 4.75 Highway Sector 2894 12/15/87 50.00 0.00 Second Highway Sector 3008 12/13/88 87.00 0.00 Subtotal 542J Q 57.32 Railways Railways 35 10/27/50 3.00 0.00 Second Railway 128 08/09/55 12.00 0.00 Third Railway 280 04/27/61 22.00 7.50 Fourth Railway 898 04/24/73 15.00 0.50 Fifth Railway 1662 03/06/79 9.75 0.62 Railway Eff5ciency Improvement 2872 09/15/87 13.00 0.00 Subtotal 74.75 8.62 Ports and Waterways Port 37 10/27/50 4.40 0.00 Second Port 151 10/11/56 3.40 0.14 Third Bangkok Port 702 07/28/70 12.50 0.55 Inland Waterways and Coastal Port 1889 07/08/80 53.00 13.34 Bangkok and Sattahip Ports 1918 11/18/80 47.00 41.32 Subtotal 120.30 55.35 Total 744.65 121.2S Source: IBRD Statement of Loans January 1990 - 21 - Table 2.1 THAILAND| THIRD HIGHWAY SECTOR PROJECT I E20' Total Exoenditure Program. 1987-91 (B million) Total 1987 1988 1989 1990 1991 il°- 7i Road Develoument Plan 3.555.7 3.110.8 6.466.0 9.836.4 15.379.4 38.348.3 la Reh.bLlitatLon & reconstructLon 1,594.8 1,157.1 1,846.4 2,448.4 3,882.5 10,929.2 U Improvement of consested roads 451.6 467.6 2,020.6 3,450.7 5,019.9 11,430.4 Upgrading to Bitumen standard 1,300.2 1,064.9 1,592.9 2,376.2 3,383.4 9,717.6 NeM road constructlon 167.1 192.0 554.7 1,169.0 2,487.3 4,570.1 Interchanges and bridges 42.0 o9.2 271.4 333.2 531.3 1,267.1 Safety program 0.0 12C.0 180.0 58.9 75.0 433.9 Road Maintenance 2.448.0 2.813.2 2.707.1 3.A_64_9 3.706.0 15.121.1 Routine malnten nce 1,065.6 1,184,7 1,160.4 1,461.9 1,578.9 6,451.5 Periodic & speclal maintenance 1,342.4 1,554.9 1,471.7 1,905.0 2,040.7 8,314.7 I Emergency maintenance 40.0 73.6 75.0 80.0 86.4 355.0 MatLonal Security Roads and Nonorogrammed Projects J&L4.1 2,557.4 2.112.2 3.196.8 3.377.3 12.837.9 Administration 1,940.6 2.025.2 2.057.2 2.384.9 2.384.9 10.792.8 Total 9.538.4 10.506.6 13.342.5 18.865.0 24.847.6 77,100.1 Total Financing Plan (B milllon) Government sources 8,404.5 9,857.2 11,794.5 15,675.9 18,910.8 64,643.0 Foreigr. sources 1,133.9 649.4 1,548.C 3,189.1 5,936.8 12,457.1 Total 9.538.4 10.506.6 13.342.5 18.865.0 24.847.6 77.100.1 La Includes B 6,557.9 million of committed subprojects under the fifth plan. In additLon, the sixth plan commits B 22,951.5 million for 1992 onvards. Source: Department of Hlbghvaya. March 1990 THXRD HIGHWAY SECTOR PROJECT DOE' Deelomen Plan, 1987-9 (Baht million) OngoLng Neev rolects Total from 1992 Investments 1987 1988 1989 1990 1991 5th plan 1987-91 Onwards 1987-91 (1) (2) (3) (1)+(2) RehabilLtatlon and Ongoing 1,584.8 772.7 176.4 48.9 0.0 2,582.8 - 0.0 2,582.8 reconstructlon Nev projects 10.0 384.4 1,670.0 2,399.5 3,882.5 - 8,346.4 3,911.4 8,346.4 Subtotal 1.594.8 1.1S7.1 1.846.4 2.448.4 3.882.5 2.582.8 8.346.4 3.911.4 10.929.2 Improvement of OngoLng 451.6 391.4 174.0 5.9 0.0 1,022.9 - 0.0 1,022.9 congested roads New projects - 96.2 1,846.6 3,444.8 5,019.9 - 10,407.5 6,750.4 10,407.5 (multilane conatr.)I Subtotal 451.6 487.6 2,020.6 3.450.7 5.019.9 1.022.9 10.407.5 6.750.4 11.430.4 Upgrading to bitumen Ongolng 1,228.6 635.7 242.5 88.7 0.0 2,195.5 - 0.0 2,195.5 standard New projects 71.6 429.2 1,350.4 2,287.5 3,383.4 - 7,522.1 2,502.4 7,522.1 Subtotal 1.300.2 1.064.9 1.592.9 2.376.2 3.383.3 2.195.5 7.522.1 2.502.4 9,717,6 New road construction Ongoing 145.1 20.0 117.1 196.5 0.0 478.7 - 0.0 478.7 Hissing Links New projects 22.0 172.0 437.6 972.5 2,487.3 - 4,091.4 9,410.3 4,091.4 Subtotal 167.1 192.0 554.7 1.169.0 2.487.3 478.7 4.091.4 9.410.3 4.570.1 Interchanges and Ongoing 42.0 78.4 87.9 69.7 0.0 278.0 - 0.0 278.0 brLdges New projects - 10.8 183.5 263.5 531.3 - 989.1 377.0 989.1 Subtotal 2A.0 89.2 271.4 333.2 53,1, 278.0 989.1 377.0 1. 26-7. Safety program Ongoing 0.0 0.0 0.0 0.0 0.0 0.0 - 0.0 0.0 New projects 0.0 120.0 180.0 58.9 75.0 - 433.9 0.0 433.9 Subtotal 0,0 120.0 180.0 58.9 75.0 II 433.9 0.0 433.9 Total Ongoing 3,452.1 1,898.2 797.9 409.7 0.0 6,557.9 0.0 0.0 6,557.9 New projects 103.6 1,212.6 5,668.1 9,426.7 15,379.4 0.0 31,790.4 22,951.5 31,790.4 Total 3,555.7 3.110.8 6.466.0 9.836.4 15.379.4 6.557.9 31.790.4 22.951.S 38.348.3 Cr Source: Department of Highways. March 1990 TRAILAND THIRD HIGHWAY SECTOR PROJECT Sumvarv of Government Revenues from Road Users. FY8O-88 (Baht million) Goveroment agencles FY80 FY81 FY82 FY83 FY84 FY85 FY86 FY87 FY88 Customs Department 2,917.0 3,025.4 5,063.8 7,164.4 8,544.2 6,406.2 6,496.1 9,791.1 17,056.4 Excise Duties Department 6,992.7 7,731.8 8,174.5 9,288.4 9,316.1 10,488.4 15,697.0 21,263.8 20,789.6 Revenue Department a 100.4 - - - - - - - - Registration Division, Police Department 614.5 818.4 1,124.1 1,409.3 1,479.1 1,489.9 - - Land Transport Department 173.4 173.4 699.1 695.7 695.3 721.0 2,271.0/b 2.298.2lb 2,333.01b I Toll Roads, DOE 26.9 28.8 30.3 29.7 36.9 38.7 39.2 41.6 72.8jc 011 Reserve Fund 868.4 1,389.5 - - 3,142.9 2,240.8 - - - Total 11.693.3 13.167.3 15.091.8 18.587.5 23.214.5 21,385.0 24.503.3 33,394.7 40.251.8 1a The collectlon of sales tax and municipality tax has been transferred to the Excise Duties Department. lb Estimated revenues. All vehicle registration was transferred to LTD In 1986. I,c One more toll plaza was established in 1988. Source: Department of Highvays. March 1990 F3 03 'a La - 24 - Table 4.1 THAILAND THIRD HIGHWAY SECTOR PROJECT Summary of Costs by ComDonent (in US$ million) Approximate Costs Loan Financed _ ..................... Components Local Foreign Total Foreign Road and Bridge Rehabilitation/Improvement Civil Works 33.70 33.70 67.40 50 Design 2.10 0.90 3.00 30 Supervision 2.00 2.00 4.00 50 Subtotal 37.80 36.60 74.40 49 Road Traffic Safety Civil Works 4.80 4.80 9.60 50 Equipment - 0.50 0.50 100 Technical Assistance and Training 0.10 0.24 0.34 70 Subtotal 4.90 5.54 10.44 53 Pollution Control Equipment - 3.00 3.00 100 Technical Assistance and Training 0.11 0.25 0.36 70 Subtotal 0.11 3.25 3.36 96 Road Transport Industry Efficiency Technical Assistance 0.09 0.21 0.30 70 Total 42.90 45.60 88.50 52 Source: Mission estimates January 1990 - 25 - Table 4,2 THAILAND THIRD HIGHWAY SECTOR PROJECT Summary of Costs by Tvpe of Exipenditure (in US$ million) Approximate Costs Loan Financed % Subprojects Local Foreign Total Foreign Civil Works Road Rehabilitation/Improvements 33.70 33.70 67.40 50 Bridge Rehab./Improvemencs/Replacements 50 Road Traffic Safety Improvements 4.80 4.80 9.60 50 Subtotal 38.50 38.50 77.00 50 Eauipment Road Traffic Safety - 0.50 0.50 100 Pollution Control 3.00 3.00 100 Subtotal -3.50 3.50 100 Consultancy Services and Trainine Design of Roads and Bridges 2.10 0.90 3.00 30 Supervision of Construction 2.00 2.00 4.00 50 TA for Road Traffic Safety 0.10 0.24 0.34 70 TA for Pollution Control 0.11 0.25 0.36 70 TA for Road Transport Industry Efficiency 0.04 0.21 0.30 70 Subtotal 4.40 3.60 8.00 45 Total 42.90 45.60 88.50 52 Source: Mission estimates January 1990 - 26 - Table 4.3 THAILAND THIRD HIGHWAY SECTOR PROJECT Schedule of Estimated Disbursements (US$ million) Disbursement Cumulative Disbursements IBRD fiscal year per semester at end of semester 1991 June 30, 1991 5.0 5.0 1992 December 31, 1991 10.0 15.0 June 30, 1992 10.0 25.0 1993 December 31, 1992 15.0 40.0 June 30, 1993 5.0 45.0 1994 December 31, 1993 5.0 5.0 Source: Mission estimates. January 1990 - 27 - ANNEX 1 THAILAND THIRD HIGHWAY SECTOR PROJECT Outline Action Plan to Improve Road Traffic Safetv The actions to be taken in this plan were proposed and discussed during project appraisal. The action plan would be further developed by the agencies concerned with and responsible for each activity or subactivity and coordinated by the Traffic Safety Council within NSC into a comprehensive and consistent plan by December 31, 1990. Areas of Resources Target Cqoncern ctions to be taken Agencv Required Dates k Formalize and strengthen NSC's Cabinet capacity for policy-making and role in ensuring coordination between government and non- government agencies in road traffic safety matters. Prepare a national action NSC to program for the coordi- reduction/prevention of road nate traffic accidents. Continued elimination of DOH, 'blackspots' on interurban Highway national and provincial roads. Patrol Prepare and implement improved Highway road traffic accident data Patrol, collection procedures and Traffic establish improved arrangements Police, for analysis and reporting of NSC,DOH road traffic accident data. LTD Prepare and implement plan for Police improving the enforcement of LTD regulations relating to vehicles and road traffic. January 1990 - 28 - ANNEX 2 THAILAND THIRD HIGHWAY SECTOR PROJECT Outline Action Plan to Reduce Vehicular Emission and Noise Pollution The actions to be taken in this plan were proposed and discussed during project appraisal. The action plan would be further developed by the I agencies concerned with and responsible for each activity or subactivity and coordinated by ONEB into a comprehensive and consistent plan by December 31, 1990. Areas of Resources Target Concern Actions to be taken Agency Reguired Dates Emission Standards Determine acceptable levels of ONEB Com- vehicle emission pollutants. pleted monitoring Issue announcements regarding LTD allowed levels of emission Police pollutants and the measuring methods and procedures with reference to appropriate acts, regulations and ministerial announcements. Enforc,ment Establish and implement LTD inspection procedures for LTD Police inspection stations and/or for private garages to be certified for this purpose. Establish and implement frequent LTD road checks with mobile Police inspection equipment. Noise Standards Review and, if necessary, revise ONEB acceptable levels of vehicle noise. Monitoring Announcements (as above for LTD, emissions) Police - 29- Enforcement Establish and implement LTD, inspection procedures for LTD Police inspection stations and/or for private garages to be certified for this purpose. Establish and implement frequent LTD, road checks with mobile Police inspection equipment. January 1990 - 30 - ANNEX 3 THAILN THIRD HIGHWAY SECTOR PROJECT Outline Action Plan to Imiprove Road Transgort Industry Efficienev The actions to be taken in this plan were proposed and discussed during project appraisal. The action plan would be further developed by the agencies concerned with and responsible for each activity or subactivity and coordinated by MOTC into a comprehensive and consistent plan by December 31, 1990. Areas of Resources Target CogSqn_ Actions to be taken Agency Re uired Dates Trucking Adjust road user charges for MOTC, heavy trucks to reflect road LTD damages they cause. Revise and enforce axle load DOH standards. LTD Police Facilitate the use of semi- MOF trailers to reduce road damage MOTC and improve trucking efficiency Terminals Encourage creation of truck LTD terminals to be built and operated by the private sector. ETO Seek improvements in ETO's ETO operations, which will make its monopoly powers less offensive to the public. Safety Strengthen compliance with LTD safety and emission inspection Police criteria. LTD Involve private garages in vehicle inspections. LTD Increase the use of mobile units Police for spot checks. Insurance Introduce compulsory third party liability insurance for truck and bus operators. - 31 - MIS Improve LTD's information MOTC, system. LTD, TC Collect passenger, vehicle & MOTC, operational data. LTD, TC Use MIS data to imprnve quality MOTC, and timing of policy decisions. LTD Prepare program for implementa- LTD, tion of priority bus terminals. BOB,MOF Transport Stimulate more competition in MOTC, Company bus services. LTD, TC Training Increase training efforts for LTD, TC managers, operators, and drivers. Regula- Review and revise as necessary MOTC, tion existing road transport acts. LTD Review and revise economic MOTC, regulation which hamper LTD efficient operations. Facilitate license approval. LTD Safety Institute appropriate measures LTD for operator responsibility and insurance. Enfo-ce rules for safety LTD, inspection and driver working Police hours. January 1990 ! -32 - ANNEX 4 THAILALND THIRD HIGHWAY SECTOR PROJECT Selected Documents and Data Available in the Project File 1. Highway Sector Project's Project File. 2. Second Highway Sector Project's Project File. 3. DOH Development Plan 1987-91; Department of Highways. 4. Highways in Thailand 1988; Department of Highways. January 1990 MAP SECTION MYANMAR r'. AND LAO PEOPLE'S ,< Pr4 Khon Wnq\ t^%v )DEMOCRATIC REPUBLIC -N le- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ SS MYANMAR\Y S A ~ \. Ētd-n '-,, < ->x j / ~~~~ ~~Gulf 5 of I'1t Thailand 10- ~ (t t THAILAND VIET NAM NATIONAL AND PROVINCIAL HIGHWAY NErWORK 2- >E~~~~~~~~- _Noissnal hsglwasys , z < X HEaN 2 _ ~~~~~~~~~~~~~ProvirdoI highnneys t > Wle Eb >.a. e . ~~~~~~~~~~Roilroads ( /3 t N / Tt ; ~~~~~~~~~~~~~~Rivars Tho Kort X<>< > Jon>7iA ~~~~~A. 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