RESTRICTED

z >RET UO RN r CReport No. PTR-12a

1REPOaR- 1DES Kit WAayj i0 ~ f y q4 f

This report was prepared for use within the Bank and its affiliated organizations.They do not accept responsibility for it; accuracy or completeness. The report maynot be published nor may it be quoted as representing their views.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

INTERNATIONAL DEVELOPMENT ASSOCIATION

APPRAiSAL OF THE

THIRD HIGHWAY PROJECT

VENE Z UELA

May 26, 1969

Transportation Projects Department

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Currency Equivalents:

Currency Unit = Bolivar (Bs)TTCS41l = s 1 <50

Bs 1 million = US$222,000

Fiscal Year

January 1 - December 31

Weights and Measures: Metric

Metric: British/US Equivalents:

1 kilometer (km) = 0.62 miles (mi)1 mt-tr km) = 3.2 8 fto.L Lof)

1 hectare (ha) 2.47 acres (ac)1 liter (1) 0.22 imp. gahullo (Lg)

- 0.26 gallons (US).L rIe L.L Lc 'I (ia torU k m2,20n4 pou.ds (ls)

Abbreviations - Acro2yM

DLi - im rectorate ol TransportMOP - Ministry of Public Worksrw'w - Milier-Warden-Western

VENEZUELA

APPRAISAL OF THE THIRD IHIGI-IWAY PROJECT

TABLE OF COMTIm4NTS

Page

SU,'IIARY i-i

1. DUTRODUCTION 1

2. BACKGROUID 2

A. Geography arnd Population 2B. The Transport Sector 2C. Transport Coordination 4

'. T14. 1-T(WLC-AY SE'CTOR 5

A. Hnig$hway AdrilnistrationB. Highway Engineering 5C. HighwayC onstruction 6D. Highway Plaintenance 6E . . ghay Pl nni no, 7F. Htigilthway Financing 7

4. THE PR)JECT 9

A. Genieral Description 9B. MTh Co+t, M71 Expeoswyr 9C. Design and Consulting Services 10D. C~ost- Esi,ts ,.Fi.-ncing ardIsure t1Li* '1k) LI JL:, LI..L*IJCLI OC A...-U..L ,'a A4L S fflL 0

E. Execution 12

5. ECONOMIC EVALUATION

A. Introduction 15

C. Economic Return 17D). * o-ng-ter, ,olui.LonLUL L

s. = by M.sss.. R. PaDvtrl (Engirner) nni M.S. PnrtqsrJ.athi (c.LU o mis tGD ).L **

sarathi (Economist).

Table of Contents (Continuation)

TALES

1. Growth of Highway Network: 1.958-19682. Registered Motor Vehicles and Motor Fuel Consumption: 1956-19673. Budgetary Expenditures of Directorate of Transport: 1962-19684. Status of Contract Awards as of April 19695. Design Standards for the Cota tlil Expressway6. Summary of Cost Estimates

CHARTS

1. Organization of the Ministry of Public Works2. Organization of thA Directorate of Transport

1. National Hignway iet-work2. Urban Expressways and Main Avenues - City of Caracas

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Xrgn.tk~LISA.L JAX L±1W AJ

SUMMAARY

i. The projeCt proposed for Bank finanicng for-Ms part of a lagerprogram aimed at resolving the severe transport problems in Caracas, thedensely populated and economically active capital of Venezuela. These

problems are the more difficult because of the city's constricted situ-ation in a mountain valley. Tne project is an urban expr-ess-way along thfenorthern side of the valley with connections to the existing city streets.The urban transportation program is already well advanced arid several olherexpressways have been built, partly with the help of Bank financing; a matjorstudy for a rapid transit system (the Caracas Metro) to be coordina ed w.ththe expresswvay systom is now in its final stages.

ii. The total cost of the project from inception is estimated atUS$119.8 miLlion equivalent. Right of way will cost US$bL.2 million,construction US$54.7 million and consulting servicos US$4.7 million; anallowance of US$19.2 million has been made for contingencies.

iii. The project was initially appraised in 1966, but there were lorgdelays in Government obtaining legislative approval for borrowing for it.,Because of the urgency of the project, the Government proceeded with partof the construction.. It is proposed that the Bank would participate onlyin expenditures after loan signature which, for the purposes of estimatinig,was taken as June 1., 1969. The total cost of constructimn works and con-

sulting services rermiaining at that time is estimated at US$h3.2 million,of which the foreiga exchange requirement (which is the basis for Bankfinancing) is US$20.0 million. The Government is financing all expendituiresbefore loan sianature and the local cost thereafter.

iv. Execution of the project is the respmnsibility of the Ministry ofPublic Works (IMP) through the Directorate of Transport (DT) which has, withthe assistance of local consultants, designed the expressway and will super-vise construction. A firm of US consultanlts acceptable to the Bank willadvise the Ministry on supervision; the same firm prepared the feasibilitystudy for the expressway. The construction contracts in the financing of'which the Bank will participate have been or will be let on the basis ofinternational competitive bidding. Construction is expected to be com-pleted by mid-1973.

V. This would be the third highway loan to Venezuela. A loan forUS$45 million was made in 1961 for two expressways near Caracas and thisproject was satisfactorily completed. The second loan for US$30 millionwas made in 19 6 4 for two trunk highways in southeast Venezuela and twourban expressways in Caracas; this project is 95% complete but is behindschedule. Costs for one of the trunk highways have been much higher tharLanticipated, largely due to unforeseen technical problems. No similarproblams are anticipated for the proposed project.

vi. The main benefit of the project will be the alleviation of tral'-fic congestion in Caracas. The investment will yield a return estimatedat 13 and is econorically justified.

vii. The project constitutes a suitable basis for a Bank loan ofUS$20.0 miLLion. On country. economic groundi:a term- of 20 vears. inclhdiLnga 41*-year grae: period, would be appropriate.

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TTV .LJIJ7LL T V± it

APPRAISAL OF THE THIRD HIGI-WAY PROJECT

1. IINTRODUCTION

1.01 The Goverrment of Venezuela has requested Bank financial assist-ance for a project consisting of (a) the completion of the constructionof an urban expressway 21.5 km long on the outskirts of the city of Caracasincluding accesses and the reconstruction of the Avenida El Panteon, and(b) consulting services for assisting the Government in carrying out theproject.

1.02 The Bank has made two loans to Venezuela for highway works. Thefirst loan (No. 306--VE) was granted in December 1961 and provided, US$45million equivalent towards the cost of constructing two sections of ex-pressway totalling 94 km (Coche-Tejerias, 59 km and Valencia-Puerto Cabello,35 km). The two expresswavs were completed satisfactorilv and oDened totraffic in 1965; present daily traffic volumes are about 10,200 and 4,80Cvehicles resnectivp[vl. The Rank agreed to use savings on the loan accountto finance the fore,ign exchange cost of extending the Valencia-PuertoGabello expnressway and an access roadi to the Glc-he-Teierias exnressway;these works were completed in early 1968. The second loan. (No. 390-VE)was gran+ed in Avugtmi 1QJ 1 and provrided US$30 million eqAivalent for con-structing or improvLng two trunk h-ighways in southwest Venezuela (Barinas-La Pe--ra 205 .km iv La P-arera=Sar. G 130 km) and two M rcanexpressways in and near the city of Caracas (La Arana-Puente Mohedano,3.8 k and ra Arana- u+-p-s+n del 7, 11 4 .I). *Ti.s pro,,ect is now

about 95 complete, irth only an overpass and an interchange complex forA JJ.C Arla-luHent, 'Jw.U'ed.ino e;r.sswy 0-o bU( s ucarte a welJ ri -f

acquijition hAs beetI completed; the latter w,orks will probably not becompleted until about mid-1590, or about six months beyond tle extendedClosing Da.tc of December 31, 1969. Because of difiLicult soil conditions,.heav-y r^ iis ancd des:.gn revisions on the La Pedrora-San Cristobal highwray,,-le cost oL tlhe total project has increased by about. l3'5 over the origiVnlestimate.

1.03 This report is based on a feasibility stucly prepared for theNA.tA+ 1w,. A _ A..1 | _+ 4-l,- TT Q 04 ,4 M 4 1 (T?_J'nUvvV-. LULUL v,yV LJ 'v-LAQ%A. VCL LI , .J U . . . p, o4' A _ _ **-- / 7

on the detailed engineering prepared by MOP and by several local consult-ants, and on t findings of a B-an appraisal mission consisting of M2ssrs.M.S. Parthasarathi (Economist) and R. Paraud (Engineer) which visitedVeInezuela, iLn Februar-y adiU SeLIpteLrU,r J.1966, J.11 AprI4.L.L and in4 Jr U--J 1.7

Changes in the scope of the project and in the amount of the loan, and theuUver-unmnt:s long delay in U-UL[i H.Lr UII L=U0 *-ecessar LUl0a UiV appt. -

for borrowing for the project held up Bank consideration of the originalreport and necessit-ated re-appraiial.

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2. BACKGROUND

A. Geography and Population

2.01 Venezuela, with an area of about 910,000 km2, is larger thanTexas and twice the size of Spain. The plains of the Orinoco River andits tributaries run roughly west to east in the middle of the country,separating the rolling hills to the south from the mountainous spur ofthe Andes which runs almost parallel to the Caribbean coastline in thenorth. The climate of the Orinoco basin and the areas south of it istropical with heavy rainfall, while the north is generally drier andmore temperate.

2.02 Venezuela's population is estimated at about 9 million and isincreasing at the rapid rate of about 3.5% a year. Over 85% of the peo-nle live in the uDland northern belt and over half of these in the ninelargest urban centers. Caracas, the capital, has a population of about2 million.

2.03 The most jimnortant scptnr of thA Vpnezuplan econorv is netro-leum which contributes about 26% of the gross domestic product (GDP),Tr1th, mrn1lf'art11-rwn (15) om-c (16t) services (25%), agriculturA(8%) and others (10%). Although it produces only one-twelfth of GDP,na-rieir.iI+ r .npr%lmry almync+t nn.mird of the r%vP +.ho GDP

at constant market prices, increased at about 5% a year durirng the lastfivTe years anrd reached Bs 42 millionn in 1967 (UsT9 b±llion eqnlvalent).Per capita income amounts to about Bs 3,600 (US$800 equivalent).

B. The Transport Sector

a. General

2.o4 Owing to the concentration of population and economic activityi.n 4.>e nrt w-.4 ere - op--p +- - o -- ---- rai Aasot+ir - 1--- -l4VLLL L1± LL%.J.L Vj1j W&V.JL~ Q LJ%JJ~.JJ.L O.jLJ VVVJL4L1.%A AI ~L. G. " WA -QJ- W~ V.J.- , . A A.. -- W

and expensive, highways have provided the principal means of internalr.ove.,ent~~~~~~~~~~~~~~~~~~~~~~~~~~~_ -r. Vrzea, ace o-artl-- for 7nV-- of 4-1,ei -4 and c 90-fpasne.iiovementL~L ..nL "VI' ne ue.Ld. %JL Lt .LUr, .LL f .;/Q LJJ. L.LV O.A CLIUA ;%Jlg U.L ~ ~ 5S

G e Wp llCIIJt I tU S J;U: - -1t 4I-dlU J td Dt rob Ui3 aU~U s al| 1 s JS n t> he1 £. *U~ ±iJ~ LJILfli L IUZ i_L1 IjIaLIjjJUA tdILJ.LU&I IJIVU.LUI1IL JLI VZLtZLLt;_ J.~ _LL UIJD

metropolitan area of Caracas where the combination of the heavy concentrationof commercial, Governmient an.d industr-ial acti-vity, the elon,gated configu-ration of the city, and the limitation of space, has led to badly con-gestued taL.Li.c condiUtionrs. Tli probiem is being UackleU tIhUroug t,,planned construction of an expressway system which started early in thesixties and of which the proposed project forms a part. A rapid transitsystem, which will complement the expressways, is also being planned.All transportation planning for metropolitan Caracas is coordinated bythe Executive Committee for Transportation in the Metropolitan CaracasArea (para. 3.17).

3

2.06 The country's hIghway network in lQAR consis+d rf ovr 37,5oo

km (Table 1), of which 17,500 km were paved, 14,000 km gravelled and6o h-m 1 a. ..ie . t heL 4 overa" 1 lna4-¾tbh of the network has irncased

by 40% in the last ten years, the length of paved highways has more thardoub-le d . .he system is ldensest r.n thne h J.put areas J.. thnorth, and has a predominance of east-west roads in conformity with thecountr-ys topographical featuLres (Map 1)

-InI 1967, Venezuela had about iLLJI.J VVc.LU wrhi v4es, of which190,000 were trucks and buses (see Table 2). About 200,000 vehicles, or3U, 01 trLie botal, wrere concentrat[ednr i. m.et,vpo':tan aracas. r iin W. ."

last ten years, the vehicle fleet has grown by 9% a year, passenger carsby l0,8 and trucks by 7%. Trle ratio of population to motor vehicles isabout 14 to 1, comparable to Argentina and better than the ratio for Spairl.

2.08 'The highway transport industry in Venezuela is free of all Gov-ernmental regulation, except for the requirement to pay license fees.There is no regulation of routes or tariffs. About 7053 of the trucks areoperated yr organized enterprises which face stiff competition frora theowner-drivers who operate the remainder. Inter-urban bus services aremostly provided by co-operatives ow¢ning a few buses each.

c. RaiL Transport

2.09 Vienezuela has now only one rai:Lway Line in operation. This isthe 174 km Puerto Cabello-Barquisimeto line constructed about ten yearsago, which was to have been the beginning of a national railway network:;the idea has since been abandoned and there are no present plans to ex-tend the system. The line carries about 80,000 tons of bulk traffic,most of which is for the Petrochemical Institute which has plants nearPuerto Cabello. The railway is managed by the autonomous Railway Insti-tute, under the Ministry of Communications. Since 1965, three other old-er lines totalling about 320 km, all separate lines unconnected witheach other, have been abandoned owing to lack of traffic.

d. Air Transport

2.10 Internal air transport is relatively well developed. There a7retwo international airports and five other major airports which togetherhandle roughly one million passengers a year and some 35,000 tons of car-go, mainly beef from the southern part of the country. Internal trafficis shared by two a:Lrlines, one privately owned and the other Governmentowned. External services are provided by a number of international air-lines, including VIASA, a Venezuelan airline.

e. Coastal and Inland ShipPing

2.11 Deep-draft shipping channels are maintained in Lake lMaracaibo foroil tankers; and in the lower Orinoco River for iron ore and other bulk car-riers, engELaged in international trade. Onlv a small volume of domestictraffic is carried by coastal and inland shipping.

C. Transport Coorcination>

2.12 The Directorate of Transport in the liUnistry of Public Works (MOP)is nominally in ov.erall charge of the Advelopment of all modes of trar.sportin Venezuela, but the railways are run by the Railway Institute, the portsby the i;2ti.0nal Port Ser. ces Ad iflsl arm the a+wai nnad *w-. aterways bythe National Canals Institute. However, owing to the predominance of high-waysrc in t.>.e- intr.a trasp.+ IT------ of ~ 5enzlA and -0e C)o rol o

the railway, coastal shipping and inland waterways, there are no problemsof t+anspoft ordztn at '--'-,_A--L me

3. THE HIGHWAY SECTOR

A. Highway Administration

3.01 Constructiion and maintenance of roads is the primary responsib ilityOf +he 1vMP which alsso 1 ooks after norts. airports. hydraulic works andbuildings (see Chart 1). The Directorate of Transport (DT) in the Ministryis direct-ly responsible for highway adnir±istration, planning, design, ccn-struction and mainteance, as well as for the design and construction of'port-s anrd a;rortsi, HIighwayv norkcs are us illy carried out through the t.enZone Directorates, but when a major construction work is to be designed andoane4-wx+ a sec+vi.on is -eated t the DT specifically feV r tLLa upose.

crea+nA-- ___ iO-- _ tnr

3 flO '1,o.. 4.<a-,or.- o o4' +4,em I'T lon e-icA4r.4roA in Chart 2. The post of

Director is filled by political appointment of a suitably qualified person.Cont_inuaiy i ad istraJtion is mintain4ed through the chiefs nfs f divsionnswho normally remaiL in office even after changes of goverrLnent. MOP s staffco=vLrises e,boout 3a 2 engineer. of whcim about __0 aClre oncerned withhighways.

3.03 The present staff of the DT is generally competent and experiencedin hLandlig all aspects of highway works. in additioon to professionltraining recei'ved in Venezuela, most of the senior staff members have at-tended engti- neerig courses abroad.

B. Hkhwda Bg ine ring

3.041 ne Manistry of Public WNorks has recently revised highway designstandards and these conform with modern engineering practice.

3.05 Until a few years ago, most of the design and supervisory work onroads, bridges and tunnels was done for the Government by local consultingengineers and the DT maintained only a small experienced staff for super-vising and coordinating the consultants' work. During the past few years,however, the technical staff of the DT has been greatly increased and is ableto undertake much more of the design and supervisory work.

3.06 As a result of the earlier policy of usming outside engineers forhighway design work, a large number of local consulting firms has beenestablished. These firms are usuallyhighlyspeqialized& (in soil investitations,highway design and structures) though limited in staff and capacity; the;yproduce some excellent engineering designs.

3.07 A major p:roblem facing the DT is the nded for enforcement'of vehicle weight reagulations. Studies prepared by MOP and its consultantsMNW have shown that the gross overloading of vehicles is damaging the high-

way network and unduly increasing the maintenance expenditures. MOP has

prepared a program for enforcement including the installation of a numberof permanent and mobile weighing stations, and plans to carry it out on asystematic basis. During loan negotiations assurances were obtained fromthe Government that adequate measures will be taken for the enforcemnent ofweight control regulations.

C. H hway Construction

3.08 Miost highway construction work is directly under MDP which alsocoordinates minor construction programs of feeder or local roads carriedout by the Iinistry of Agriculture, the National Agrarian lnstitute, thelocal authorities and private companies.

3.09 Ihe quality of highway construction is generally satisfactory.Construction works are undertak6n by unit price contradts -isual2y awardedthrough domestic competitive bidding.

3.10 The local construction industry is capable of handling large scalehighway works and is well organized. However, local firms specialize in dif-ferent aspects of highway constructiaa (earthworks, base and pavement orstructures), and prefer, therefore, contracts by type of work instead ofcomplete sections of road. Occasionally they grnup themselves for carryingout complete sections of road under one single contract. In view of thelarge number of firms, MOP normally requires prequalification and theninvites selected firms to bid.

3.11 There is no restriction on foreign firms submitting bids, but theyhave to register in Venezuela. No difficulty in registration has been ex-perienced by competent applicants. The presence of well equipped and com-petent domestic contractors has resulted in keen competition and the parti-cipation of foreign contractors in highway construction works has beenmainly by joint ventures with Venezuelan firms.

3.12 Eccept fcr light trucks and vehicles, which are assembled inVenezuela, all heauy construction equipment is imported and there are noimport duties on such equipment. The Government permits import of con-tractorsl equipment recuired for tlle construction of roads and has agreedduring loan negotiations to facilitate its re-export after completion ofthe works.

De Highway hintenn ce

3a 3 1I)P, throligh its !hintenance Division,; is directly resrcnsible forthe maintenance of the National Highway System (about 19,000 km); maintenanceof the remainder (18,500 kin) im b the Ministry of Agriculture; the NationalAgrarian Institute and the States (all assisted by MOP) and by private com-panies Routine maintenance is carried oLit. by the Government's oni forcesand is satisfactory. The Maintenance Division, which is well organized andstaffed, operates throluh the ten Zone DiTectorates uhich have ia:terna-ncesections with equipment, repair shops, stocks of spare parts, radio andtelephone coun i r.ncations, hous-g and ot+her fac;iities.

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3.14 In mid-1967, MOP engaged Stevenson, Jordan and Harrison, a USconsulting firm, to prepare a studr of maintenance equipment requiremeatsand make recommendations for the reorganization of warehouses and repairshops and a training program for supervisors, mechanics and operators.A pilot maintenance zone is being established in Maracaibo where the recom-mendations are being implemented; if the operations of this zone are ful:!ysatisfactory, the system will be extended to the remaining nine zones. Thepreliminary estimate by the consultants of the amount needed for the renewalof maintenance equipment is about Bs 52 million (US$11.5 million equivalent)which would be financed through budgetary appropriations.

3.15 Total maintenance expenditures during the 1962-1968 period areshown in Table 3. The average maintenance cost of the National HighwayNetwork per km/year is about Bs 10.000 (US$2,200 enuivalent) includingdepreciation of equipment; roads are maintained to satisfactory standards.

3.16 Assurances xTere obtainen during loan negotiations that theGovernment will crnntinue to maintnin thn national hhwav vsytem adequately.

E -Hplhwjav Plannnrin

3.17 Tr's Plannincg lvision works closely w.th the NIkatioJnal Transport.-ation Counc:il and the main planning agency, CORDIPLAN. An adequate trafficcensus system is in operation wi+h 56 per.mnanent staf-innsr aborut 1 2n

periodic stations; origin and destination studies are made as required;dCta are co=,z1+-=p-o-esnrd1 MTI rlnr ng trision .cen+ly co.rleaed +le

first inventory of the highway system in Venezuela. Planning of highwaysnar. ere-s -. 4 ian around Caracas i9 car-led o.-t4

- by 4-1- I s 'sT'-r e-

portation Office, which is also in charge of the studr of the Caracas RapidtT tt + ( Q r-+-f thlkf14 - 4 -1-+ w-r-1 coord- _ 4-,o _ -A4- + V -ec-A +- ttrb on

.. .^ L- IJJ < v,> ~ \S± U., .- I,V U.L LUVI IW UVr± ,.L4L k.JLW %LL1 LL. L W J4. U14S ." tA VA- | ~,mittee for Transportation in the Metropolitan Caracas Area. These officescooperat-e c:1ose1-Y- -wi-tilh T%IJT ln. rvsLn'~~L~.U V W.Llj~~1 IlJ±* r.LCLLLLJ.L.Lr, 1.J.LV.LJ.LUL1.

3.18 Although -the irnportance of proper IgIhway plalliaing Lb xCuUgILLZted inVenezuela, assurances should be sought darring negotiations that the MOP irll

Wv,u &UL7 v A K4 ;q v=; D .wc, 4--., 1- - ----- - -1 U_ L. -- P-; 4V1 VoHqp-x

3~ .19 A Uein CLa.L.re LJJAWdy nve t jJ.LdnI ICL LjV[I JL-t:!prad._U fLor thll

years 1969 to 1972; this has not been released pending review and approvalby t,W GGV-U.E'EUWnU WILLICh C;Ori-F3e Ir-LI'O officeLU in1 MarrZeh 1969. 'agruumuwll i2sreached dur-ng loan negotiations that the plan wrUll be made available forBank re-ve-w as s-oon as conpleted.

* I ru.way FinancL±ingT, , _.

3.20 n:ighway works in venezuela are financed tnrough budgetary ap-propr-iations. MOP's total budget for 1968 was Bs 1,804 million (US$401 imil-ion equivalent) oI- which Bs ou9y mii±ion uS$i35 miiiion equivalent) wen-tto highways. Two-tlhirds of the highway budget was for new construction andimprovement. Table 3 shows the expenditures of the Directorate of Transporton highways during 1962-1968.

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3.21 Relatively little external financing for highway works has beenprn4d to VeL1 nezuela. Tn .i4U) a lo_n LILuWinL to Uio 6 m ion C.uIV.lt

was made by the U.S. Export-Import Bank for financing the steel structure the bridge oover the Orjnoco River. In, 1961 nd[IU 1964 ALJ BanmK two loanstotalling US$75 million equivalent for financing the construction of ex-pressways and trunk highways (para. 1.02). The Baniks role in hignway devei-opment in Venezuela has been a relatively minor one.

3.22 Highway user charges include fuel taxes, purchase taxes on vehicles,components and spare parts, license fees and tolls on toll roads and bridges.Toll charges are generally designed to raise only half the cost of the faci-ity, the oUther halL belng Treatea as cnargeable To tne general budget be-

cause of the developmental impact of such works; toll facilities include theCaracas-Vale-ncia, Caracas-La Guaira and Valencia-Puerto Cabello expressways(totalling about 235 km) and the Lake Maracaibo and River Orinoco bridges.

3.23 Road user contributions in Venezuela total much less than thecosts which could reasonably be alMlocated to the users. In 1964, suchrevenues totalled about Bs 100 million and almost covered road maintenanceexpenditures; by 1967 these revenues had risen to about Bs 200 million -rather more than maintenance expenditures, but only about 35 of all high-way outlays. The Venezuelan Government considers that imposing a higherlevel of user charges is unnecessary since there are no competing modes;it views roads as essential to economic development and consequently to befinanced from general resources. The question of an adequate level ofcharges on road users in metropolitan Caracas (where congestion will re-main a problem) needs to be investigated, especially in the context of the

II. THE PROJECr

A. General Description

4.01 The project consists of:

(i) the completion of the construction of the Cota Milexnre,sway. an urban exnresswav about 21.5 km longadjoiting the northern part of Caracas, together

itrih a conneertinn to the Autonista del Este. about14 interchanges and 6 km of access roads;

(ii) the assistance of consultants on the supervisionof ths construction of the PmrerqWay;

chargas in metropolitan Caracas; and

(iv) the reconstruction of the Avenida El Panteon.

B. The Cota Ilil Expressway

4.02 The Cota Mil expressway will be a four-lane, limited access divid-ed highway and is one oI several high-priority projects for relievinL thetraffic congestion of metropolitan Caracas. It will increase by approxi-mately 2550 the traffic capacity of the existing east-west urban thruwaysystem; at its eastern end it will connect with a new expressway beingconstruction from Petare to Guatire (contracts for the first 5 km sectionof this latter expressway have been awarded). The western end is at theEl Retiro interchange; it is planned that eventually the expressway willbe extended westward to join the existing Caracas-La Guaira highway.

4.03 The proposed expressway is located along the northern slopes ofthe Caracas valley where topographical and soil conditions are difficult.Earthworks are substantial and account for about 40% of the constructioncosts; the structural works including four bridges with a total length ofabout 400 m. and the 14 interchanges account for a further 40% of costs.The road wlJl be paved with asphalt concrete on a crushed stone base.Because of the large quantities involved, the long haul distance (about15 km) for select and pavement materials and tne problems of constructionclose to a congested urban area, the cost of the road construction is high.

4.04 Construction work was started late 1966 and one major access road1.6 km long and a 3.5 km section of the expressway, which includes fourinterchanges, have been completed. Construction of a fifth interchange willstart shortly. Details of contracts already awarded are shown in Table h.The Bank wil1, therefore, participate in the financing of the completion ofthe construction works comprising 18 km of expressway, 9 interchanges andLabout 4.4 kmn of access roads connecting the interchanges with existing citystreets and avenues (see Map 2). Four of the interchanges will includeconnections to streets and avenues planned to be built within the nextfive years.

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t4 r)5 T,,e uJoit vJl u' t1ha Avenl da Ei. 'rantleon (see Vl'a;. 2) b^illenecessary for the diLstribution of the traffic moving to and from the westend of the Cota l'u"l expressway and is incluued in the project. The Bankwill not, however, participate in its financing, but during Inan 1e-ot` ;ctnonsassurances were obtained from the Government that the right-oo -w,±y brll ie

acquired on time and that the work will be completed by the time of theopening of the Cota Nil expressway (para. 4.23).

4.06 The design standards for the project expressway (ITable 5) wereprepared by the Ministry of Public Works. They are similar to those used1for projects under Loans 306-yE anci 39Q--VE and are satisfactory. Duringloan negotiations assurances were obtained from the Government that thesedesign standards will be followed.

C. Design and Consulting Services

4.07 The feasibility study for the Cota Mil expressway was prepared bythe consultant MNWr, and detailed engineering has been carried out by MOP as-sisted by several local consultants. 1WW has reviewed the engineering andfound it satisfactory.

4.o8 The technical competence of the Ministry staff connected with thedesign, administration and supervision of highway works is such that fulL tlieoutside consultants are not necessary. However, in order to provide an inde-pendent check on various aspects of project execution such as bidding proced-ures, analysis of bids, changes in designs and other engineering matters,supervision of construction, materials testing, review of loan withdrawal re-quests, etc., the Government proposes to employ TWM which has been retainedfor previous Bank-financed road projects; this is acceptable to the Bank.During loan negotiations, a preliminary draft contract between the Govern-ment and the consultants for supervision of construction was reviewed. Anumber of points in this draft contract require amendmentg the loan willnot be presented for signature until agreement has been reached on those points.

4.09 The Government will appoint consultants acceptable to the Bank tocarrv out the studv of road user charees in metronolitan Caracas. The tarmsof reference for th3 study will be agreed with the Bank (see paras. 3.23 and5.12).

D. Cost Estimates. Financing and Disbursement

4.10 The total cost of the project is estimated at US$ll9.8 millioneauivalent and is summarized as follows (Table 6):

UiJ4) 1A"_.L_LU.. LA-

Equivalent

1. Cota Mil Expressway: construction works 44.7lighting 1.0right-of-way 35.2

2. Avenida El Panteon: reconstruction works 9.0right-of-way 6.0

3. Ccnsulting Services: 4.7

4. Cc,ntingencies (20%0 of 1+2) 19.2- nG~~~~~~~19

- 11 -

Of this the Bank will participate only in the financing of (a) expendituresfor construtction of the Avenida Cota NU±). (excluding right-of-way, lightingcosts and contracts let already following procedures not acceptable to theBank) to be made after loan signature. and (b) services provided by foreignconsultants. The loan amount will be US$20 million equivalent. Estimatedcosts are summarizeid below:

Bolivares (millions) US$ million equivalentItems Toral FnrAian Total T,onl Fonrei rn Tota,,l

1. Construction of the CotaNMi1 expressway 86.15 70.65 156.80 19.10 15.70 34.80

2. Consulting servi.ces for(i) assisting ;r super-

vision of construction 0.90 4.05 4.95 0.20 0.90 1.10(iil) stiryr nf -olrnr

charges in Caracas 0.25 1.10 1.35 0.05 0.25 0.30

3. Contingency allowances forJ itm). 1 (about -10%! "Wyro c^nl 10% escalation) 17.30 34.20 31.50 3.85 3.15 7.00

Totals 104.60 90.00 194.60 23.20 20.00 43.20

4.11 The estimate of the project cost is adequate. Quantities used forthe esti4mat-, o the Cota 1 ', -.-. TVT.&Jsw Uo 1. f., edengineering studie's (para. 4.07). Unit prices were drawn from contractEs re-cently aarvded for works on the eApi-UZs-wcLy and cUae considered reasonaoble.

4.12 The cost of consulting services for assisting supervision is cbasec3on costs for similar services under previous Bank loans. The cost of themetropoli-an CUa-ULs road user charges study nas been estimated on the cbasisof the Bankl s experience of studies of a similar nature carried out elsewhere.

4.13 A contingency allowance of about 10% of the construction cost hasbeen Licluded for possible quantity increases. An additional 1u0% contzLgei3cyhas been included to cover price increases during the four-year construction

4.14 Tne foreign excnange component of construction cost, which the Bankwill finance, is estimated at 45%, taking into account the substantial eLmounto1 earxtwor ks involved, on which the foreign exchange component is high. Theestimate is based on the assumption that about one fourth of all the workswould bDe carried ouLt by foreign contractors. Past experience on Bank p:rojectsshows that foreign contractor participation in road works has been limited andmrainly in jhe form of joint ventures (para. 3.11j. However, the proposedchanges in contracting arrangements (para. 4.22) are expected to attract moreforeign contractors. The loan will finance the estimated foreign costs indi-cated above and the actual foreign exchange cost of consulting services.. Anybalance reraining undisbursed in the loan account after completion of the projectwill be cancelled.

- 12 -

4.15 Llie tentative annual breakdown of estimated Government expendi-tures and loan disbursements is as follows:

Total Expoenditures Local Expenditures Bank DisbursenierLtsB3olivares US$ Bolivares US$ US$ Million

Y.llions Millions Ecuivalent

1969 31.9 7.7 18.0 )4.0 3 7

1970 4-9 10..2 24.0 5.3 4=9

1971 45.9 10=2 24.0 5.3 4.9

1972 45,5 10.1 23.0 5.1 5.0

1Q7R 99, A A _, I- -i---, A '- - .o) * )

To+ls 194.6 43.2 104.6 20 ^.0

E Execution

L.16 Th>^ere should be no diffic4 J -'Ly .4- 4-i- 0'- r 1 .ee- 4t,share of the cost frcom budget appropriations. Experience with the two

previous.Lg.o OJJy Lahs o tAl;lU GLV (0-oVrernmLent hadLI U ri,2aUde f- uUs avai,ablpromptly as required. However, since the Government plans to carry out other'ge JL."CLAM woJr. AOnc ntLLy -bjUL UI-e t UU-wer .iLUU UUXI rlg Loa_-nU

tions that priority will be given to the project and that adequate funds willlbe made ava-.LabLJUe pJVIIUjL).±- fUo -LUt ex.eUCUtiOn.

4.17 I ±uhe loa cU Wi- 1 ueu woi heovernmenti oi venezueia. ±ne Ministry oiPublic Works will1 be the agency in charge of the project.

4.18 Since the pace of disbursement of previous highway loans has beenivery slow compared with the pnysical progress of the worKs, te possibiI.tyof introducing more expeditious procedures within the Government for requestingdisbursemlen1t was discussed during loan negotiations. The Government agreedthat it would pursue this matter.

4.19 In view of the urgent need of the expressway for relieving thetraffic congestion in Caracas and of the long delay in obtaining legislativeapproval for externml financing, the Government started the construction worksin 1966. 'rhe Bank knew this situation and informed the Government that i.tsparticipation would be limited to expenditures to be made after loan signature.

4.20 As mentioned in para. 4.04, construction of the expressway has al-ready started, and is expected to be completed in mid-1973. Eleven contractstotalling about US$14.7 million equivalent, or about 32% of the constructioncost of US$4L4.7 million equivalent (excluding contingencies), have been a.ward-ed for expressway works. Seven of these contracts were awarded under procedures

unacceptable to the Bank (i.e. negotiated contracts or local bidding) and willnnt bep fnnced frnm +.len.n Thp n_ poiin nn contract a.wards is as follnows

(see also Table 4).

US$ MillionI - uni alnt

1. Contracts Awarded

i) contracts in which the Bankwould not participate 7.2

-i) paen,,pnts on eligi_ble nnnnt.r'-tt

to be made before loan signa-ttire 2=7

iii) payments on eligible contractsto be made after loan signa-ture 4.8 14.7

2. Amount of Contracts to be let

i) minor or specialized works(local bidding) 1.0

ii) constru ction works (inter-national competitive bidding) 29.0 30.0

Total construction cost (excl. contingencies) 44.7

The Bank will participate in the financing of items 1 (iii) and 2 abovetotalling US$34.8 million equivalent. Apart from certain minor or special-ized items which may be awarded to local contractors after competitive bid-ding, the remaining construction on the Cota Mil expressway totalling aboutUS$29.0 million equivalent will be carried out by contractors under unitprice contracts awarded on the basis of international competitive biddingin accordance with the Bank's established procedures.

4.21 In order to encourage the participation of foreign firms, con-tractors will be invited to prequalify for all remaining expressway worksat one time. This will be repeated annually as long as contracts for prc,-ject works are still to be awarded. Prequalification is to be starteCshortly, but the Government does not intend to award -any further contractsuntil after loan signature.

4.22 Die to the specialization of the local construction industry, con-tracts are usually awarded by type of work (earthworks, base and pavement, orstructures) instead of by section of road including all works (see para.3.10). Altlough this system is acceptable for very specialized works, e.g.complicated structures, for normal highway construction work can only becoordinated effectively and the responsibility for failure and delay definedif all works in one section are carried out by one main contractor; alsothe present system reduces the attractiveness of works to prospective for-eip,r bidders. The B.ank has suggested to fMOP that contracts should be ot'adequate size and should be awarded for complete sections of road, and Oilthat basis the fnllowing schedule of contracts was agreed:

Cost Estimates(Excluding Contingencies)

Contracts Bolivares US$ Eauiv.(Ifil lion-sT)

.L. I.IJJ WJI±1100U VI.IU.L CU

2. T^ (Iw'r-Dl,qe al ==i.

ing works) 11.5 2.6

3. El Marques-Ia Urbina and La lJrbina-TT--~ - -.. ! - -. 1 -19.2nO 1 n

I'UULLLzacionUrI * r anda- 2 8 .6. 2

4. Connection wiith Autopista del Este 56.4 ;2.l/

S ;an Burnardino-El Retiro 2 .8 o 5. .7

6. Reafforestation .2 0.6

7. Slope stabilization 2.0 o.4

Totals l35.3 30.0

l/ Contracts for these works may, by agreement with the Bank, be furthersubdivided-A int4o no m.ore "San th.e contracts. -4-

4.23 The right--of-way has been acquired for about 15% of the total landneeded. The Governrment indicated during loan negotiations that the balarLceof the right-of-way will be acquired in conformity witi the constructionschedule. A formal assurance that funds will be provided for this purposewill be a condition of effectiveness of the proposed loan. Right-of-waycosts will not be financed by the Bank but are included in project costsfor the purpose of economic evaluation.

15 -

5. ECONOMIC EVALUATION

A. Introduction

5.01 The rapid growth of the VenezuelaPn eonAmy and of +he vehIclefleet in the last few years have already been mentioned (paras. 2.03 and2.07). The economy is exprected to mnn+tnin a growth rtn+ of arouvntd 5% ayear in the next 2-3 years, but may slowdown somewhat thereafter. On thisassumntion. the aninual inore2se in +i4 morn+. rre1ic1e e, et a wo'do,a' A -Tr

slowdown gredually from 9% in recent years to 6% in the 1970's and to 51thereafter- Thp n1irnhpr rof ehoi h wo" 1

lA PA from about | 0.o inr1967 to slightly over 1.0 million by 1975 and to almost 1.8 million by 1985.As moen tjion-ed rin a ra.. 2.07, - about41 3 P *"- t -oe tzatd -Caracas, and this situation is expected to continue for the foreseeablefil tarr a

< .n9 An - + m in + A-r.4- -A-I - 5 41 _ 9 _ fro- -"'r±"-V a1V J W ,y a UL %-J .Ld.LCLsJ.v VU;VLsU1iLLU UVLJ t:J.L V, 'blL liU g ± L luthe completion of the Cota Mil expressway will be lower vehicle operatingcosts. TheSe d-rectly measu able ber.efits alone offer adequate justii-cation for the expresswray project, representing an economic return of j3,on the investment. TLhre would be otLer substLatlial benefits in the formof time savings, reduction in accidents and avoidance of social costs re-aI to +- 40 r -- af 4c__Xges! - oZ -B.l Vzle oitJ Csc L'r "Lad±.L.L

v O3 The Caracas valley, in which the city is located, is approximately25 km long and about 4 km wide at its maximum point. The population of themetropoltLar. area is now about 2 mi.llion and has been growing at about 6"' ayear. In addition to being the capital of the country, Caracas is the mostinpor tat firancial and commercial center, with a large number of industriesin and around the city. Consequently it is the nation's most important em-ploymaent center, providming employment to more than 500,000 persons, or toover one-fifth of the labor force in the country. Even if efforts beingmade to discourage the further setting up of industries in the Caracasarea meet with success, the city's importance will continue to grow. TheComisiorn Nacional de urbanismo conservatively expects a 3.5% annual grow-thin population in the future, the same rate of growth as the population oftile country as a wnole. The actual growth rate is, however, likely to hecloser to 5Az,

5.04 . At present transportation in the metropolitan area is provided by900 buses (which carry 800,000 passengers daily), 9,000 taxis (which move500,000 persons) and more than 150,000 private cars (which make 1.2 milliontrips). in addition, about 200,000 trips are made by other means, making

a total of 2.7 mill.ion trips daily. There are three foci areas for traffic:wie centra]. buszx_essi dis'urict, where nliost, go-verrmient offices are located, a

major shopping and office area east of the business district, and a res-taurant anci entertainment area further east. Residential developmiient bastended to concentrate working and lower middle class housing in the westernpart of the city and middle and upper class housing in tne eastern part.

5.05 rene northeastern sector of the city, which would be the mostimportant part of the city the Cota MU] expressway would serve, has atpresent 2F% of the total land area and population of metropolitan Caracasand generates over 27% of its traffic, most of it to and from the center ofthe city along the'east-west thoroughfares. Population in the northeasternsector is growing f'aster than the metropolitan average and is being acccm-*modated in large numbers of new apartment blocks, and it is forecast thatin another 10-15 years this sector will have about 28% of the population.and account for a correspondingly higher proportion of traffic.

5.06 The linear development of the city with several areas of emplcynentconcentration has created a simple but congested east-west traffic pattern.Transportation on this east-west axis is, at present, mainly provided byfour thoroLghfares, which together in 1968 carried a peak-hour traffic cfover 12,00C) vehicles in each direction under congested conditions and atotal daily traffic: volume of 150,000 vehicles in each direction on sixweek-days. Owing to the three-hour break around mid-day, there are fourpeak hours of traff'ic . Further. peakohour traffic ;is onlyslightly 'higher than the hourly average of 13-hou= traffic between

7 a.m. and 8 p.m., indicating the existence of congestion during most ofthese hours. East-west traffic on these thoroughfares is expected to g3at about 6%? a year in line with Dast experience, reaching a peak-hourvolume in each direction of 13,500 vehicles in 1970 and 15,000 in 1975 anda daily traffic volume in each direction of 170,000 in 1970 and 225,000 in1975.

5.07 ]n order to reduce the traffic congestion, the Government has al-ready improved three of the east-west thoroughfares to accommodate 10,000vehicles per hour in each directinn at an acceptable level of service andthe other east-west road could accommodate a further 400-.500 vehicles perhour in each direction at present and 1,800 after some improvements. TheCota Mil expressway would be a major and much needed addition to thesefacilities to tackle the present congestion and to provide relief until along-term solution involving construction of a rapid transit system is pro-vided. Owing to the topographical res-trictions (which would mean muchhigher cost for a larger facility) nnd the limited capacity of streets con-necting with the expressway, it has been designed Aith four lanes which cO&EldDrovide an accentable level of servzice +o 3,000 vr.-.h. in each direction. .'1the east-west thoroughfares could, when improved by mid-1973, provide anacceptable level of servine to about 15,000 v.ph= i'n each direction, compareJwith the forecast peak-hour traffic of 13,500 in 1970 and 18,000 in 1975.

- 17 -

C. Economic Return

5.08 A principal economic benefit of the project will arise from thefact that on its completion. it will nermit all vehicles in the east-westthoroughfare system to operate during the 13 busy hours under normal con-ditions at. hoht. Ah4 kmt/hr cnmnaer w_+ith nnpration in congested conditionson existing roads, with many slowdowns and stops, at an average speed ofinder 30 r n-lh- Th. i ijJ relrice ,rehiile oeran+Jng e.09tS hy nnprn-vim.tely

30%. For eaxample, in the case of passenger cars, comprising over 95% ofthe traffic, for an avverage trip of le k., +the saving is estm.nated atBs 1.80 or US$0.40 equivalent. The total of these benefits would be about

increasing to Bs 72 million in 1975. Beyond 1975, in as much as the system..oa 'd aga4\> begin- to- be congested, no :--.c-e -- 4- level 'I -'Ief --~'4J..J~CIJ. .J

5J. Ln. VW LJU CLJ.1 CIUSE U, .L.L .LLLkt" VCIOCI -LLI Ul£±; ..L V VL J-L L/JIUIA ... V1

resulting from the present project is assmned.

5.09 ]?rojected over the estimated 30-year life of the facility, thesa"V4..LgsCI y-eL£.LU cua eUon..,I1c r-etnj fLLL f L.,O oLL t.e p.-opod _U.LVV U1I%-,I.LL, J.--

cluding right-of-way, which constitutes over one-third of the total costl.-. ;.ere WOuldJ a'Lso be Uener.fiL b LLL tuLue `uri0i- OLf tzMIe sVa-v4Lngs d-nd r.eduction J'nI

accidents and in tlle social costs associated with congestion, which have4_ U ; ._. l- ?:_ ..:. - L_I -_ __.- t. - I -_nout .een quantJ_fJ( "i I)U-U wm±±cn WOU±O EtU vury

substantiaL.

D. Long-Dhrm Solution

5.10 The completion of the Cota Nil expressway will not by itselfprovide a :Long-terMn solution to te transportation problems of metropoL'LtanCaracas. ]y 1990, the city is expected to have a population in excess of4 milli on and a labor force of over 1 million and will have to accommodatesome 6 million trips daily. Studies by the Govermnent and its consultarntsindicate that peak-hour transport capacity requirements on the east-wes1;axis would approach 25,000 vehicles in 1980 and 32,000 vehicles in 1985,but the topography of Caracas severely limits the extent of additionalexpressway construction that could be undertaken.

5.LL The Government has set up a special unit in MOP to study the metro-politan transportation needs, and a scheme for the development of a rapidtransit system in stages has been drawn up and would form an integral partof an overall plan. The overall transportation plan will be based on theurban and :Land use planning studies that are being carried out and will covernew highways, improvements to existing roads and streets, and improvement ofbus and taxi services - all related to each other and to the rapid transitsystem with-in the context of the general development of the city. The pro.-posed Cota Mil expressway forms an essential part of the long-term tran;-portation system being planned for metropolitan Caracas and would, in viewof the ant:Lcipated traffic growth, continue to carry substantial volumes ofmotor vehicle traffic even after the planned rapid transit system goes intooperation, and even in the event of any changes in the level of user chargesin the future.

- i8 -

5.12 The prob:Lems of providing adequate highway facilities to growJMgtfrfficr -in thA m i'.nrn-1i+n,p Cia are rS -nar to th leveL off hirrhumv

user charges. The project, therefore, includes provision for a study ofChoe level !nn s+wf4-u'ct of h ,vP v m 4vi ,n'.'nc -rr n a v.iew to"p dtrmining measures to ensure the efficient use of existing and planned traisport

- 19 -

6. RECOMMENDATIONS

6.01 ]uring negotiations. agreement was reached with the Govermniienton the following principal points: (i) the enforcement of velLicle weightand dimensions remTlations (nara. 3.07); (ii ) the rponnstrimtion of theAvenida El Panteon (para. 4.05); and (iii) the timely procurement ofrieht-of-wav (naras. r.Oc5 and h1.2V.

6.02 '=The Gnvernment ha.s aireed to riu, forimfl assurance that funrlswill be provided for acquiring land for the project works in conformitywith the construction schedUe. The receipt of a satisfactory letterconveying such assurance will be a condition of effectiveness of the pro-nnosed Ioan (nnrn-I.2)

6.03 'Phe project is teiw&ca 1whaovnl d Ind eco ,ncl Tr 4ilc4y 4 d. Itconstitutes a suitable basis for a Bank loan of US$20.0 million equivalent.rp1h4m Pt-nnnnjr,mi 1-ift r-f 44Iie~ 4v0~,

4m~, -'20~4 ) -.-. IT..

'>e. ecoomL ,-f of -1.- -.esmel is- esvm,te at 30-v yes hw , or.

country economic grounds, a 20-year term including a 41½ year period of graceTuIou1dA be '.

MIA nT T: 1

VENEZUELA

THIRD H:IGI-IHAY PROJECT

Growth of Highwav Network: 1958-1968

(In tT o..eJ^rs.

Year Paved Gravel Earth Total

1958 6,265 10,094 8,565 24,924

1959 7,820 9,452 8,634 25,906

1960 8,312 9,723 8,408 26,443

1961 8,867 10,125 8,494 27,486

1962 11,718 10,766 5,187 27,671

1963 13,221 10,130 4,848 28,199

1964 14,429 10,260 4,712 29,401

1965 15,284 10,696 4,555 30,535

1966 16,423 12,837 5,716 34,976

1967 17,024 13,479 5,816 36,319

1968 17,478 14,152 5,920 37,550

Source: Ministerio de Fomento andMministerio de Obras Publicas

March 10, 1969

fn A nTT I La 1).L)J C.

TvENEZUE-LA

THIRD HIGIMAY PROJECT

Registered Motor Vehicles and Motor Fuel Consumption: 1956-1967

-- Registered Motor Vehicles ----------- GasolineYear Cars Bases Trucks Total Consumption*

1956 157,922 6,599 85,193 249,714 1,8C'9

1957 184,038 6,222 88,394 278,654 1,953

1958 222,536 6,299 95,10 323,975 2,115

1959 236,995 6,800 95,305 339,100 2,306

1960 266,693 6,800 96,906 370,399 2,33b6

1961 275,377 6,105 112,452 393,934 2,401

1962 296,90'9 7,215 120,884 425,004 2,402

1963 325,174 7,913 128,530 461,617 2,559

1964 352,400 8,888 136,716 498,004 2,769

1965 384,685' 10,403 155,454 550,542 2,931

1966 426,179 13,307 174,865 614,351 3,1] 6

1967 452,449 14,327 175,500 642,276 3,326

AverageAnnualGrowth 10.0 7.3,' 7.0, 9.0%;

* In millions of liters. Diesel oil consumption for motor vehiclesis negligible.

Source: Ministerio de Fomento

March 10, 1969

TABLE 3

VME''EEZUELA

THIRD HIGIPtJAY PLROJECT

Badgetary Expenditures of Directorate of Transport: 1962-1968

Y e a r s1!62 1963 94 ( b5) 96 17 E

---- Bs Ifl1ilions-------------------

Construction and Improvement 300 365 321 387 419 357 427

Studies and.Engineering 12 8 11 15 16 20 20

Maintenance 145 101 106 135 164 155 155

Administration 8 7 7 7 7 7 7

465 481 445 544 606 539 609

Source: Ministerio (le Obras Publicas

March 10, 1969

TABLE 4

v"ENEZUELA

THIRD HIGHtJWAY PROJECT

Status of Contract Awards as of April 1969 1/

Contract Partial Total TS$No. Award Contractor Type of lrorks Bs. Bs. Equivalent

A. Contracts on which the Bank will not participate:

7710-1 Negotiated PEDECA (i) Earthiworks and drainageof access road i2.o

11162 Negotiated PEDECA Earthworks and drainageof section of express-way 6.3

104794 Local bid PEYCA Base and surface of ac-cess road and sectionof expressway 5,9

10898 Local bid EDIFICA Chacaito Bridge 1.72/ Negotiated PREVRICTA-

Negotiated GONIZALEZ Altamira interchange 4.5±! Iiegotiated ALIVA Slope stabilization 0.511095 Negotiated LOCK JOINT Guardrails O05 32.5 '7.2

B. Payments to contractors *to be made prior to6/1/69 on. whch the Dank -will not participate:

7710 Int. Bid PEDEC.A Sam.e as (i) ahbve 6.38221 Int. Bid CACCIANANI (ii) Earthworks and drainage

of section of e.-'ress-way 3.8

9783 Int, Rid ELTFICA (iii) Structures on accessroad and section ofexpresstway 2.2 12. 3 '.*I7

Cc Payments to contractors to be m.nde after6/1/69 on which the Bank will participate:

7710 Int. Bid PEDECA Same as (i) above 0.98221 Int. Bid CACCIAMANI Same as (ii) above 1.09783 Int. Bid EDIFICA Same as (iii) above 0.42/ Int. aid PALACE Earthworks and drainage

of section of express-way 19.2 21 e .8

Subtotals 66.3 1 i.7Amount of contracts to be let 135.3 33.0

Total construction cost (excluding contingencies) 201.6 4h.7

1/ Amount of awarded.contracts includes adjustments after completion of works.2/ Contract number not yet determined.

IMay 26, 1969

TABLE 5

VEMEZUELA

THIRD HIGHWAY PROJECT

Desien Standards for the Cota N4il Exnresswav

Design Speed kph 80

Number of Lanes 4

Lane Width m 3.60

Roadway Width m 28 to 32

Shoulder Width m 1.60 to 2.4o

M4inimum Radius m 240

Maximum Gradient , 5.5'

Cross Slope 2

Type of Paving Asphaltic Concrete

Load Design for Bridges H20-S16 (AASHO)V/

Single Axle Lo-ad kg 8.500

1/ Aumerican Association of State Highway Officials.

Source: Ministerio de Obras Publicas

iarch 10, 1969

TABLE 6

VENEZUELA

T-IIRD HIGHWAY PROJECT

SU,rI.;ILy o. C Uost E ,af

-- 4 .. 1Co s t Li s t i m a t e s

US4 Million EquivalentroEUVL'ULI iLI W±±;.L LLIa

Items Total Bank Participates Amount

1. Construct.ion of the Cota MUExpressway

Earthworks and Drainage 18 .40Structur-es 17.4o

n -_~~~~~~~% O f

Paving and Miscellaneous 8.90 44.70 34 15.70Lighting 1.00FUght-of -Way 35.20 _

80.90 34.80 15.70

2. Reconstruction of Avenida ElPanteon (:including US$6.0 mil-lion for right-of--way) 15.00

. n-i nee-sA . qmyr e. in _ _

TLcal 3.30Foreign 1.40 4.70 1.40 :1.15

4. Contingency Allowances{5rTon+ l n! h-rczi r-,nI snrl

lOJ escalation)

For construction 11.00For right-of-way 8.20 19.20 7.00

TOTALS 119.80 43.20 20.00

M 'a 'I O96

VENE ZUELA: T'HIRD HIGHWAY PROJECT

ORGANIZATION OF THEI MINISTRY OF PUBLIC WORKS

MINISTEIR OF PUBLIC WORKS

-I-_-__________________ tDIRECTOR GENERAL|

A jj N O M O U S _ ]1 N S T I _r u 1J N S - M_ I N I S T E R'sO F F I C E ',

7 1~~ONLISIT'EO NATIONAlL ADMINISTRATIO [ OFFICE OF MIISRWORKER'S BANK NIANITARY WORKS F OF THE PROGRAMMING ANC FFICE OF ORGANIZATI SPORTATION OFFICEK.... I LANITARY WORI(S L ~~~~~~~EAST PARK L CONTRZOLL__________________

OFFICE OF ZONE OFFICE OFCOORDINATION PUBLIC RELATIONS

r S E IS I C E l N 1 N _ l

AND SP-ECIAL SERVICE7S FIETR

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