Report No. 493a-MAU d p,

Appraisal of aThird Highway ProjectMauritaniaOctober 30, 1974

Western Africa Projects DepartmentHighways Division

Not for Public Use

Document of the International Bank for Reconstruction and DevelopmentInternational Development Association

This report was prepared for official use only by the Bank Group. It may notbe pu9ished, quoted or cited without Bank Croup authorization. The Bank Croup doesnot accept responsibility for the accuracy or cormpleteness of the report.

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Currency Ecjuivalenta

Ourrency Unit = Ouguiya (UM)US$1.00 = UM 50UN 1 = US$ 0.02UN 1 million = US$ 20,000.

Fiscal Year: January 1 - December 31

SYstem of Weights and Measures: Metric

:=tric Britiph/eS Bcuivalents

1 meter (m) 3.28 feet (ft)i kilometer (km) = 0.62 mile (mi)i square kilometer (kom') 0.386 square mile (sq mi)1 metrie ton (m ton) 2,204 pounds (lb)1 liter (1) - 0.26 US gallon (gal)

= 0.22 British gallon (imp gai)

Abbreviations and Acronms

ADF - African Development FundCIDA - Canadian International Development AgencyDfW - Directorate ef Public WorksIF - Kuwait Fund for Arab Economic DevelopmentME - Ministry of EquipmentMP - Ministry of PlanningM2T - Ministry of Trade and Transportation

vpd - vehicles per day

MAURITANIA

APPRAISAL OF A THIRD HIGHWAY PROJECT

TABLE OF CONTENTS

Page No.

SUMMARY ..................... i............................... i ii

1. INTRODUCTION.

2. THE TRANSPORT SECTOR .. 2

A. Economic Setting. 2B. The Transport System. 3C. Transport Policy, Planning, and Coordination 4

3. HIGHWAYS 5

A. The Network............. * ... 5B. Characteristics of Road Traffic and the

Road Transport Industry. 6C. Administration 7D. Engineering and Construction 7E. Maintenance and Betterment. 8

4. THE PROJECT 9

A. Description .. 9- Technical Assistance ..... .............. 9- Purchase of Highway Equipment l.......... i- Betterment Program. 12- Feasibility Study and Detailed

Engineering of the Rosso-Boghe Road 12B. Cost Estimates .12C. Financing and Disbursements 13D. Execution .. 14

5. ECONOMIC EVALUATION .15

A. General .15B. Consolidation and Expansion of Highway

Maintenance .15C. Betterment Program .16D. Feasibility Study and Detailed Engineering

of the Rosso-Boghe Road 17

6. AGREEMENTS REACHED AND RECOtMMNDATION 18

Tlis report has been prepared by Messrs. E. Bonhomme (Engineer) and P. Gyamfi(Economist), and updated by Messrs. E. Staffini (Engineer) and A. Byl(Economis t).

TABLE OF CONTENTS (cont'd)

TABLES

1. Highway Classification and Conditions2. Vehicle Registration, 1967-733. Annual Consumption of Motor Fuel, 1968-724. Minimum Training Requiremen'ts5. Hiighway Expenditures, 1968-756. Highway Equipment Requirexnents7. Projece Cost Estimates8. Cost Estimates for Mechanic.dl Equipment and

Consulting Services9. Financing Plan

10. Estimated Schedule of Disbursements11. Operating Costs of Highway :Equipment

MAP

Mauritania - Third Highway ,?roject - IBRD 10995

MAURITANIA

APPRAISAL OF A THIRD HIGHWAY PROJECT

SUMMARY

i. Mauritania covers a total land area of about one million km2, ofwhich about two-thirds are largely barren, arid parts of the Sahara desert,and the remainder mostly savanna grassland. Although some 90% of the 1.2million inhabitants are subsistence farmers and nomadic herdsmen, the coun-try's economy is dominated by enclave mining activities. The demand for in-ternal transport is therefore generally low. Roads are the predominant mode;transport by railway, air, and water is specialized both with respect to traf-fic type and location. The road network totals about 7,000 km, of which onlyabout 500 km are paved; the remainder are mainly earth tracks with no definitealignment, making transport costly, arduous, and hazardous, and seasonally im-possible on some roads. Improving these conditions progressively, as warrantedby traffic development, has been the strategy of the Government and the BankGroup over the past several years.

ii. The Association helped finance a (First) Highway Project (Credit69-MAU, US$6.7 million, 1964) which included construction of the Nouakchott-Rosso road (200 km), the most heavily trafficked in the country, and a studyof the highway maintenance organization. Since completion of the road, traf-fic on it has developed much more rapidly than forecast at appraisal. Con-sultants BCEOM (France) carried out the maintenance study which provided thebasis for the ongoing maintenance project, and for its continuation and exten-sion as recommended in the proposed third project.

iii. As mentioned, the Second Highway Project (Credit 159-MAU, US$3.0million, 1969) was aimed at implementing the recommendations of the BCEOMstudy, and provided for the purchase of equipment and provision of technicalassistance to execute a four-year highway maintenance and betterment program.Under this project, the Equipment Division of the Directorate of Public Works(DPW) has been reorganized, a betterment program executed through the highwaybases was initiated, and about 60% of mechanics and operators trained. Thetraining program could not cover all the available personnel because of dif-ficulties encountered in finding counterparts to the consultants in the earlystages of implementation, and because of the need to provide lower-level staffwith basic reading and writing skills. It is therefore now necessary toprovide additional technical assistance for training the remaining operatorsand mechanics.

iv. Under the proposed Third Highway Project, it is planned to extendthe training facilities to include all other highway personnel. There isalso a general need to improve the present organization for planning, execut-ing, and supervising highway operations. Highway maintenance and bettermentneed to be continued and strengthened, and a year-round connection betweenNouakchott and the eastern regions ensured.

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v. The proposed project therefore includes: (a) technical assistanceto the Infrastructure Department of the Ministry of Equipment (ME), to theMinistry of Planning (MP), and tc> the Transport Department of the Ministry ofTrade and Transportation (MTT); (b) purchase of highway equipment for mainten-ance and betterment works; (c) continuation of a betterment program on about365 km of roads; and (d) feasibility study and detailed engineering for con-struction of the Rosso-Boghe roacd (200 km), the most heavily traffickedunpaved road in the country.

vi. The total capital cost of the project is estimated at about US$13.7million equivalent, including foreign exchange costs of US$9.5 million (69%),and US$2.4 million equivalent in taxes. The project will be financed by theAssociation, the Kuwait Fund for Arab Economic Development (KF), by Canadathrough the Canadian International Development Agency (CIDA), and the Govern-ment, under separate agreements for each aid agency. The United NationsDevelopment Programne (UNDP) has indicated that it has no funds available forparticipation in this project. lhe financing plan is scheduled as follows:(i) US$3.0 million by the Association and US$3.8 million by KF to meet thetotal cost (net of taxes) of tecbnical assistance, preinvestment studies, andthe betterment program; (ii) US$4.5 million by Canada to meet the entireforeign costs of equipment procurement and related services; and (iii) US$2.4million by the Government to cover the tax component of the project. TheGovernment will also allocate funds to meet the recurrent costs of roadmaintenance and betterment works not included in the project. The Governmenthas stated that an amount of UM &0 million will be provided in its highway main-tenance budget for 1975, and has agreed to an annual review by the Associationof its road maintenance program and budget for fiscal years 1976 through 1979.

vii. The Ministry of Equipment will be responsible for implementing theproject, except for small items of technical assistance which will be carriedout by the Ministries of Planning and of Trade and Transportation. The projectis expected to start in 1975 and be completed by mid-1979. Consultants fortechnical assistance and for the feasibility study and detailed engineeringwill be selected on terms and conditions acceptable to the Association. Termsof reference for all the above services have been discussed and agreed withthe Government. Signing of the consultants' contract for technical assistanceto the Infrastructure Department will be a condition of effectiveness of theproposed IDA Credit. Execution of the betterment program will be mainly byforce account, with support provided by contractors as required; a 7-1/2%margin of preference will be granted to domestic contractors. Procedures forequipment procurement to be financed by Canada will follow the general condi-tions of CIDA.

viii. In order to ensure that the interdependent aspects of the projectitems are adequately taken into account, the Association has entered into anunderstanding with each of the co-lenders that progress made in implementingeach part of the project will be compared, and the implementation schedulerevised if necessary. In addition, the understanding with KF for joint finan-cing provides that the Association will act on behalf of KF with regard totechnical assistance and preinvestmnent studies, while the betterment programwill be administered and supervised by both agencies.

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ix. The principal aim of the proposed project is to consolidate andexpand the maintenance effort started under the Second Highway Project; im-plementation of this program will lead to a reduction in vehicle operatingcosts on the network, and will also extend its seasonal use. The economicreturn on the maintenance item is estimated at about 36% over the six-yearexpected life of the capital investment. The betterment program will ensureall-weather transport on two roads serving the most agriculturally produc-tive and densely populated areas of the country. This project item yieldsan economic return of about 35% on the Boghe-Kaedi-Kiffa road in the south,and of about 16% on the Akjoujt-Atar-Choum road in the north. The preinvest-ment studies concern improvement of the most heavily trafficked unpaved roadin the country.

x. The proposed project is suitable for a Credit of US$3.0 millionto the Government of Mauritania on standard IDA terms.

MAURITANIA

APPRAISAL OF A THIIRD HIGHWAY PROJECT

1. INTRODUCTION

1.01 In 1964, a Credit of US$6.7 million (Cr. 69-MAU) was made to theGovernment of Mauritania to help finance the engineering and constructionof the Nouakchott-Rosso road (200 km). The construction work was completedon schedule in 1969 following initial delays due mainly to the scarcity ofgood road materials in the project area. Since completion of the road,traffie has increased much more rapidly thar forecast at appraisal. TheCredit also included funds for a highway maintenance study which was under-taken by consultants BCEOM (France), and which provided the basis for theongoing maintenance project (para. 1.02), and for its continuation and ex-tension as recommended in the proposed Third Highway Project.

1.02 The second Bank Group project in the transport sector, the ongoingIlighway Maintenance Project (Cr. 159-MAU, US$3.0 million, 1969) focussed onthe purchase and management of maintenance equipment, and on reorganiza-tion of the Equipment Division of the Directorate of Public Works (DPW).Five mechanical experts from BCEOM assisted *n carrying out the reorganization,and the Equipment Division which was previously rudimentary, now has a CentralWorkshop in Nouakchott for heavy equipment repairs; minor repairs and routinemaintenance of the equipment are performed in the field with light facilitiesof the highway bases and the subdivisions. The BCEOM experts also helpedimplement a training program for operators and 'mechanics, but its executionwas delayed in the early stages by the need to provide lower-level staffwith basic skills in reading and writing, as well as by the difficulties en-countered in finding middle- and higher-level local personnel to be counter-parts to the consultants. As a result, only about 60% of this staff weretrained, and it is therefore now necessary to continue the program for theremaining operators and mechanics, and to extend the training facilities toother highway personnel. During the proposed project, work started underthe second project will be continued and strengthened, and new efforts willbe directed to DPW's Highways Division and the local subdivisions to improvepresent methods of planning, executing, and supervising highway operations.Also, efforts will be directed to continuing and strengthening highway main-tenance, and to creating a year-round connection between Nouakchott and theeastern region of the country.

1.03 The proposed Third Highway Project therefore includes: (a) technicalassistance to the Infrastructure Department of the Ministry of Equipment (ME),to the Ministry of Planning (MP) and to the Transport Department of theMinistry of Trade and Transportation (MTT); (b) purchase of highway equipmentfor maintenance and betterment works; (c) continuation of a betterment programon about 365 km of roads; and (d) feasibility study and detailed engineeringfor construction of the Rosso-Boghe road (200 km). The total capital cost ofthe project is estimated at about US$13.7 million equivalent, including for-eign exchange costs of US$9.5 million, and US$2.4 million equivalent intaxes. T?he project will be financed by the Association, the Kuwait Fund for

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Arab Economic Development (KF), by Canada through the Canadian InternationalDevelopment Agency (CIDA), and the Government, under separate agreements foreach aid agency. UNDP has indicated that it has no funds available forparticipation in this project. The financing plan is scheduled as follows:(i) US$3.0 million by the Association and US$3.8 million by KF to meet thetotal cost (net of taxes) of technical assistance, preinvestment studies, andthe betterment program; (ii) US$4.5 million by Canada to meet the foreigncosts of equipment procurement and related services; and (iii) US$2.4 millionby the Government to cover the tax component of the project.

1.04 This report is based on information supplied by ME, as well as onthe findings of an appraisal mission comprising Messrs. E. Bonhomme (Engineer)and P. Gyamfi and T. Lott (Economists) which visited Mauritania in September1973, and a follow-up mission by Messrs. Bonhomme and Gyamfi in December 1973.

2. THE TRANSPORT SECTOR

A. Economic Setting

2.01 Mauritania covers a total land area of about one million km , ofwhich about two-thirds are largely barren, arid parts of the Sahara desert,and the remainder mostly savanna grassland. The population of about 1.2million, which has grown at 2% p.a. over the past decade, is concentratedaround Nouadhibou and Nouakchott, and along the Senegal river in the south.Because of the combined effects of low population density, long distancesbetween towns and settlements, harsh climatic conditions, and poor road-making soils, the provision and maintenance of transport infrastructure isexpensive and technically difficult, and the operation of vehicles is costly,arduous, and often hazardous.

2.02 About 90% of the active population are subsistence farmers andnomadic herdsmen, yet agriculture, livestock-raising, and other traditionalactivities generated in 1972 only about 31% of the Gross Domestic Product(GDP). This traditional sector grew at about 4% p.a. between 1960-68, butproduction fell between 1969-72 due to severe drought conditions. Tne corres-ponding annual increases in mining activities (generating about 36% of GDP)during the periods abovementioned were 19% and 6%. Per capita GDP increasedfrom US$110 in 1962 to US$170 in 1972. However, individual incomes of mostof the population have probably not increased over the decade, as growth waslimited to the modern sector, which employs only about 10% of the activepopulation, and whose activities are located 600 - 700 km from the center ofthe agricultural zone.

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B. The Transport System

2.03 Transport infrastructure consists essentially of about 7,000 km ofroads (mainly earth tracks), about 740 km of privately-owned railways servingthe mining sector, a deep-water port and a wharf, two international airports,and about 19 airstrips for domestic services; in addition, the Senegal Riverprovides for almost half the year about 600 km of navigable waterway betweenRosso and Gourai (Bakel) (see Map IBRD 10995). The system is generally ade-quate to serve the needs of external transport. For internal services, roadspresently constitute practically the only mode; river transport was once sig-nificant, but has now dwindled to a few small itinerant craft which provideinfrequent services (para. 2.07); internal air transport has proved essentialin helping alleviate the effects of the recent drought, but is at present toocostly to attract significant and continuous demand.

Ilighways

2.04 Details on the highway system and its administration, as well as

the characteristics of the road transport industry, are provided in Chapter 3.

Railways

2.05 The only railway in the country is owned and operated by Mines deFer de Mauritanie (MIFERMA), the iron-ore min4ng company located in the north.Although traffic is largely confined to shipments of ore from deposits nearZouerate to the port of Nouadhibou (amounting in 1972 to about 8.4 milliontons), small amounts of general merchandise (about 7,000 tons in 1972) andlimited passenger service, are carried on the back-haul. In order to allowdevelopment of this general traffic, and to ensure better connections betweenNouadhibou and the rest of the country, the proposed project provides forimprovement of the road linking the railway stop at Chounm with Atar, thetrade center cf the northwest.

Ports and Waterways

2.06 Seaport facilities comprise the deep-water port at Nouadhibou andthe 350 m wharf at Nouakchott. The Nouadhibou port is effectively two special-ized facilities: a bulk cargo port for MIFERMA's ore traffic, and a generalcargo and fishing port. The Association is currently appraising a projectfor extension of the latter facility. The wharf at Nouakchott handled about153,000 tons of cargo in 1973, only about two-thirds its capacity. Over thepast five years, wharf traffic has increased at more than 25% p.a., but thiswas mainly due to a shift of imports to Nouakchott from the port of Dakar(Senegal). This shift is now almost complete, and traffic is expected togrow at a maximum of 9% p.a. over the next decade.

2.07 Transport on the Senegal River was once an important mode for theagriculturally productive southern region, with about five power crafts andseveral barges owned and operated by a Senegalese firm, but there are now only

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infrequent services by a few small boats. At the time when operations wereefficient, river transport was a useful complement to road transport alongthe Rosso-Boghe-Kaedi corridor, and if revived, could still play an impor-tant role for carrying bulk low-cost commodities. This possibility is beingstudied by the Senegal River Basin Commission 1/ in the context of an overallstrategy to harness the Senegal River and develop its valley.

Airways

2.08 The air service networl. is sufficiently well developed to help over-come the long distances over largely inhospitable regions, and to compensatefor the lack of surface transporl; capacity, especially to remote and seasonallyisolated areas. There are two international airports, at Nouadhibou andNouakchott, but only the former can handle long-range jet aircraft. Thereare also 19 airstrips for domestic services which can accommodate DC-3 andDC-4 type equipment. In spite of this internal air transport capacity, how-ever, passenger demand has been :imited, principally because the cost of airfares still remains far beyond the means of the average local traveller. Fortransport to remote areas, howevtr, it is not inconceivable that on a total-cost basis (i.e. infrastructure and operating costs), air transport for pas-sengers and perishable goods, in combination with the use of off-road vehiclesfor other goods, could be an economically cheaper alternative to the more con-ventional road transport used under prevailing conditions.

C. Transport Policy, Planning, and Coordination

2.09 Transport policy has in recent years been characterized by thefollowing features:

(a) a shift in the orienta -ion of external transport for goodsand passengers from the port of Dakar in Senegal to theMauritanian ports;

(b) use of transport as an integral part of a strategy to achievenational unity, and to reduce the wide discrepancies inliving standards in diUferent areas of the country with theGovernment absorbing part of the transport costs to theconsumer of certain essential commodities; and

(c) efforts to establish a reliable transport system necessaryto develop the more poiulated and agriculturally productiveregions in the south aïnd southeast.

These objectives are generally sound, although in selecting individualprojects, more emphasis could have been given to economic priorities.

2.10 In order to provide tha Government with the possibility to build upits transport planning capacity, the proposed project includes the provisionof services of a transport planner/economist to help identify priorities inthe sector, and to study appropriate modes for domestic services (para. 4.04).

1/ Organisation pour la Mise ei Valeur du Fleuve Senegal (OMVS).

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2.11 The Government currently assigns priority to construction of adeep-water port and a new international airport at Nouakchott, and of atwo-lane paved highway directly linking Nouakchott with Nema via Boutilimitand Aleg, as well as betterment of the Rosso-Boghe-Kaedi road along theSenegal river. The Association has informed the Government that it considersthe scope of the planned port and airport projects premature. The Govern-ment's attention has also been drawn to the fact that construction of the1,100 km link Nouakchott-Nema (which between Nouakchott and Aleg would crosspractically uninhabited desert) would cost about US$100 million, and thatmaintenance of this road would require almost a doubling of ME's presentexpenditures for recurrent maintenance (para. 3.13). Further, the Associa-tion has informed the Government that it considers improvement of the exist-ing road links between Rosso, Boghe, and Kaedi as the more economical methodof linking Nouakchott to the southern and eastern regions, and this workwill be initiated under the proposed project (paras. 4.09 and 4.10).

2.12 Issues of transport coordination, both in the sense of competitionbetween modes and the extent to which they complement each other, exist onlyin the Rosso-Boghe-Kaedi corridor (about 300 km) where both road and watertransport have seasonal advantages over each other. Road transport is prac-tically the only mode during the dry season (December to June/July), withonly very little competition from small boats of up to 1 m draught. Theroad is partly flooded the rest of the year, and at that time, transport inthe corridor is accomplished by boats of up to 2.5 m draught. In the past,this arrangement had generally served transport needs along the corridor;however, planned large-scale agricultural developments will call for im-proved facilities in the near future. The exact transport improvementsto be made, especially on the Rosso-Boghe stretch, have not yet been deter-mined, since implementing the agricultural projects will involve harnessingthe Senegal River, and that undertaking may have quite serious effects onexisting transport arteries. The feasibility study of the Rosso-Boghe roadto be carried out under the proposed project (para. 4.11), will have to takeinto account potential improvements in river regulations, as well as theimplementation of agricultural projects.

3. HIGHWAYS

A. The Network

3.01 The road network totals some 7,000 km, of which only about 500 kmare paved and another 1,060 km are all-weather laterite roads; the remainderare earth and sand tracks (Table 1). The trunk system comprises three prin-cipal axes: a northern axis stretching about 1,850 km from Rosso in theSenegal Valley to Atar and the Algerian border in the north, an east-westaxis from Rosso to Nema, and a central axis Boghe-Aleg-Tidjikja (see Map).Except for the first axis and some sections of the second, the roads have nodefinite aligwients, as vehicles drive cross-country choosing their own paths.

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3.02 Although the density of the network follows quite well the patternof population distribution and of economic activity, access to most areas ofthe country is limited to little more than half of the year. Sandstorms inthe north and floods during the wet season in the south cause frequent trafficinterruptions which, because of poor maintenance organization, are unneces-sarily prolonged.

B. Characteristics of Road Traf:lic and the Road Transport Industry

3.03 The traditional sector of the economy is still at the subsistencelevel, and therefore does not generate much traffic. Most passenger trafficoccurs in the modern sector, and :Ls largely restricted to the Rosso-Nouakchott-Akjoujt road. Goods traffic, except that generated by the mining industry,consists almost entirely of impori-s (basic foodstuffs and petroleum products),most of which enter through Nouakchott or Rosso. Until the results of up-coming agricultural programs starn being felt, movement of agricultural produceand local goods will continue to represent only about 10% of total traffic.

3.04 Traffic counts in 1972 on the principal axes indicate that the pavedroad Rosso-Nouakchott-Akjoujt carries some 470 vpd, and the Rosso-Nema roadabout 50 vpd. Although data on growth in total road traffic are not availa-ble, the growth since 1968 of the vehicle fleet (7% p.a.) and of fuel consump-tion (about 10% p.a. for gasoline and 22% p.a. for diesel oil, excludingMIFERMA share), indicate that traffic has increased more rapidly than the3% p.a. projected during preparat:.on of the last highway project (Tables 2and 3).

3.05 There are at present no specific restrictions either on vehicleimports or on the entry by Mauritainians into the public transport business.The Government, through its Depar:ment of Transport and in collaboration withtruckers' representatives, sets inaximum prices chargeable for different routes.Until 1968, the National Transport Office (ONTP), a Governnental agency, wasdirectly responsible for organizinig and regulating road transport. Followingits abolition, operators regroupeci to form the Syndicat des Transporteurs wh±chnow performs these functions, except the setting of maximum prices which isstill done by the Government. Tht, Syndicat is expected to provide the necessarysupport to individual truckers in organizing their business by making cashadvances for purchases of fuel an(c spare parts, and by negotiating transportprices with shippers, including tlhe Government, on their behalf. In assessingthe Syndicat's role, due recognit.on should be accorded to the quasi-publicutility role of road transport in Mauritania, and the extremely difficultphysical, climatic, and roadway conditions under which the industry has tooperate. The Syndicat ensures thai,t each route, irrespective of its condition,is adequately served at transport prices which, while guaranteeing some profitto the truckers, do not lead to a waste cf resources.

3.06 The problem with the Syxidicat is lack of efficient management and oftechnical and administrative expertise to perform its functions well. Ideally,technical support should be provicLed by MTT's Department of Transport, buteven tiiough it has some good staff, they are completely occupied with vehicleregistration and operator licensivg. To complement this staff, a transport

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expert will be attached to the Department of Transport under the proposedproject; the expert will provide technical support to the Syndicat inNouakchott and Rosso by assisting truckers with management and accounting(para. 4.04).

C. Administration

3.07 The Infrastructure Department of ME is responsible for the roadnetwork; its jurisdiction also covers civil works of ports, airports, andGovernment buildings. The Department carries out its road functions through:

- two central divisions -- Equipment Division, Road and AirportDivision -- located at Headquarters (Nouakchott);

- nine field subdivisions, corresponding to the nine administra-tive regions, to carry out routine maintenance;

- four highway bases, of which one is located at Nouakchott formaintaining the main paved road, and the three others presentlyassigned to regions (North, Center, and East) for performingbetterment works.

3.08 The most significant feature of the present organization is theshortage of well-qualified local personnel at high- and middle-level posi-tions. There are at present five technical assistants in the Department whoshould ultimately be replaced by nationals. Several of the chiefs of sub-divisions and highway bases, and some local technicians, have little or noexperience in highway operations, and need continuous professional guidance.To help alleviate these shortcomings, the proposed project provides trainingopportunities both locally and abroad for this and the counterpart personnel(para. 4.03).

3.09 At the level of skilled workers, the Second Highway Project providedvocational courses and field training for operators and mechanics, but theprogram was slowed down by the need to first provide reading and writingcourses to almost all the trainees. Consequently, only about 60% of theoperators and mechanics were trained under that project. The program willtherefore be continued under the proposed project, and extended to cover allcategories of highway personnel, including foremen and supervisors (para.4.03 and Table 4). A more comprehensive and longer-term approach will beprovided by the recently approved education project (Credit 459-MAU, US$3.8million, 1974) under which existing technical colleges will be upgraded anddeveloped. This will help meet the overall requirements for technicians inboth the public and private sectors, thereby reducing the risk of departuresof trained highway personnel from the Ministry.

D. Engineering and Construction

3.10 The engineering and supervision of major highway construction worksare carried out by consultants and reviewed by the Road and Airport Division.

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Designs for minor works are prepered directly by this Division. Local engineer-ing capacity has improved with tte recent creation of the state-owned SoilTest Laboratory financed by FAC and presently staffed with engineers andtechnicians from the French Centre d'Etudes du Batiment et des Travaux Publics(CEBTP). This laboratory will assist the highway services in carrying outspecific geotechnical surveys or general research of selected road materials.

3.11 Major highway construction works, financed by foreign aid, areexecuted by contract awarded after competitive bidding. Minor constructionworks are executed by force accotnt. Most of the foreign contractors whohad established local subsidiaries have recently left the country, due toa drop in construction activities. There are six domestic contracting firmsengaged mainly in building construction. For the first time, one of thesehas recently entered into a joint venture with a French firm to build therunway of the new Kaedi Airport, and will thereby gain experience in theexecution of civil works. Some of the local contractors are presently ableto perform some categories of highway construction works such as buildingsmall bridges or other river-crossing structures, and preparing and haulinglateritic materials.

E. Maintenance and Betterment

3.12 A first step in improving highway operations has been achieved withimplementation of the Second Highway Project, and with substantial increasesin the highway recurrent budget allocated to the Infrastructure Department.Normal highway maintenance is however limited, because of the generally poorcondition of the network. The only road regularly maintained is the pavedroad Rosso-Nouakchott-Akjoujt (460 km) where routine operations are carriedout by the highway base of Nouakchott, and major pavement repairs by con-tractors. The rest of the network will have to be improved before suchregular maintenance can be useful, and this is the aim of the bettermentworks being performed by the three other highway bases on the roads Akjoujt-Atar in the north, Aleg-Moudjeria-Kiffa/Tidjikja in the center, and Kaedi-Kiffa in the south. These operations include earthworks on selected align-ments, construction of surface course in lateritic materials, and spot up-gradings. Their execution, howevar, although of first priority, is currentlyhampered by occasional use of the equipment of the three bases to carry outoccasional maintenance operations on road sections already improved. Theproposed equipping of the field subdivisions to carry out maintenance opera-tions will improve this situation (paras. 4.05-4.06).

3.13 In accordance with its commitments under the Second lHighway Project,the Governnent has regularly increased the highway recurrent budget coveringboth maintenance and betterment wDrks. Table 5 indicates the increases inthis budget since 1968, as well as the amounts expended annually on construc-tion. In 1913, the maintenance aLlocations amounted, as scheduled, to about60 million UM (US$1.2 million equLvalent), of which 60% was allocated to theEquipment Division and the highway bases, 18% to general lleadquarters expendi-tures, and 22% to the field subdivisions; salaries accounted for about halfof the allocations. Although twice the 1969 budget, however, the amountswere still insufficient to include provisions for equipment renewal, and tokeep pace with price escalation. In particular, the Division had difficultiesin procuring the spare parts necessary for equipment repairs, since their

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costs increased by about 50% since 1969. In order to update the total budget

and its distribution among the highway units, the Government has stated that

an amount of UM 80 million would be provided in the highway maintenance budget

for 1975, the first year of project implementation. The Government has also

agreed on: (i) furnishing to the Association for its review, before September

15 of each preceding year, proposed highway maintenance programs and budgets

for 1976 through 1979; and (ii) in order to ensure that adequate maintenance

funds will be available at all times in the future, even when major new road

construction commitments are made, reviewing with the Association whenever

such a commitment is made the future maintenance budget needs which will re-

sult from that commitment (para. 4.17). These budgets and forecasts of fu-

ture budgets should be prepared in collaboration with the technical assist-

ance experts in light of new developments in prices and in maintenance re-

quirements (para. 4.02).

4. THE PROJECT

A. Description

4.01 The proposed project, as a follow-up to the ongoing operation,

consists of:

(i) technical assistance to the Infrabtructure Department of the

Ministry of Equipment, to the Ministry of Planning, and tothe Transport Department of the Ministry of Trade andTransportation;

<ii) purchase of highway equipment for maintenance and bettermentworks;

(iii) continuation of a betterment program on about 365 km of roads;and

(iv) feasibility study and detailed engineering for constructionof the Rosso-Boghe road (200 km).

Technical Assistance

4.02 This item is mainly aimed at extending the technical assistance tothe Infrastructure Department being provided under the ongoing Second HighwayProject. The extension is required to supplement the present shortage ofqualified highway personnel, and to allow continuation of the ongoing train-ing program. Discussions held during project appraisal indicated that theassistance should cover about 300 man-months over the next four years. Thetechnical assistance team now proposed will comprise:

- five mechanical experts (two workshop mechanics, two equipmentinspectors, and one training expert) who will be assigned to theEquipment Division to: (i) control the use of highway equipmentand repair operations both in workshops and in the field; (ii)train operators and mechanics; and (iii) prepare maintenance andrepair manuals for highway equipment.

- 10 -

three highway experts (one engineer and two technicians) whowill be assigned to the Road and Airport Division to help:(i) reorganize the field subdivisions, train their personnel,and prçgram and supervise their activities; (ii) determinerequirements of the highway recurrent budget; (iii) preparethe necessary engineering for the betterment program andsupervise the work done by the highway bases; and (iv) imple-ment adequate accountirng procedures to monitor the highwayoperations.

- a senior expert specialized in training on a short-termassignment of about 3-4. months.

4.03 Training of highway personnel will be a continuation of the earlierprogram for operators and mechanics, and will also extend to other staff suchas foremen, supervisors, etc. Table 4 details the number and categories ofpersonnel expected to be trained under the proposed project; however, theactual number will be determined by the senior training expert, taking intoconsideration the country's general employment situation for each staffcategory, and the possible future transfer of specialized personnel to theprivate sector. Refresher courses on highway administration and techniqueswill be organized for the engineers and technicians heading the varioussections of the Infrastructure Department. These latter personnel, however,will be trained mostly through their participation in project implementationas counterparts to the experts, and through fellowships for studying abroador participation over 3-6 month periods in the functioning of highway depart-ments in other West African countries. A provision has been made under theproposed project to finance these fellowships and purchase suitable didacticmaterial. As there is no office space available on ME's premises for thetechnical assistance experts and their counterparts, provision has also beenmade for expansion of the Ministzy's offices, and for necessary furniture andequipment. During the first four months of the technical assistance contract,the senior expert will work out a detailed training program covering all cate-gories of highway personnel, and specifying target dates; this program willbe sent to the Association for review and approval prior to its implementation.The Governnent has agreed that it will select the most promising engineers andtechnicians in ME, and will assign them as counterparts to each of the eightmechanical and highway experts; also, that it will select from among thecounterparts or other staff, after consultation with the Association, those towhom fellowships should be awarded.

4.04 In addition to the above technical assistance, the project providesfor the services of two other experts: (i) a transport planner/economist tobe attached to MP for a period of two years to assist in identifyingand analyzing transport investmen.ts, and to study appropriate modes fordomestic services; and (ii) a transport expert with good experience in thetrucking industry, also for a twc-year period, to help the Transport Depart-ment of MTT assist truckers with management and accounting.

- 11 -

Purchase of Highway Equipment

4.05 As part of their road maintenance study carried out in 1967/68,consultants BCEOM made proposals for increasing ME's highway equipment pool,renewing some items, and repairing the remainder. The new equipment purchasedunder the Second Highway Project following these proposals, has been allocatedto the highway bases and the central workshop. The remaining items wereassigned to the local subdivisions, but were too old to permit execution ofthe planned mechanical repairs; much of this equipment is no longer service-able. An updated inventory of the pool has been prepared with the Infrastruc-ture Department and BCEOM. Table 6 gives a summary of this inventory, andindicates the equipment required for the field subdivisions and the highwaybases, as well as the items to be purchased under the project in 1975 and1976.

4.06 For seven of the nine field subdivisions, the project will providethe minimum equipment required to progressively build up normal highway main-tenance capacity. In the case of the two other subdivisions, Nouakchott isalready equipped with a highway base, and Nouadhibou has too small a network(about 90 km) to warrant a special equipment provision. The equipment pro-posed will comprise motorgraders and farm-type tractors for grading and re-shaping road surfaces, mechanical road brooms, tank trucks for fuel distribu-tion, and general purpose vehicles. The equiximent will be used for lightmaintenance operations, and also for emergency works such as sand removal,provision of temporary detours, and restoration of traffic on damaged roadsections, thus extending the periods during which the network can be used.

4.07 For the highway bases, the project will provide items to completethe existing equipment fleet and renew part of it. The additional itemsenvisaged are two automotive compactors which will help increase the outputof the two highway bases in executing the betterment program; tank trucks tosecure fuel supply; a crane truck; and a low-bed trailer for quick dispatchof heavy equipment. Renewal requirements are limited to some dump trucks andgeneral purpose vehicles.

4.08 In order to save time in equipment delivery, Canada has agreed toappoint a consulting firm specialized in mechanical equipment to be in chargeof equipment procurement, shipment, delivery, and assenbly. The same firmwill send to Mauritania one or two technicians for the equipment deliveryperiod, and for the additional time required to help local staff becomefamiliar with the new types of Canadian equipment; these services will besupplied as a grant.

Betterment Program

4.09 This project item will continue the betterment works initiated underthe Second Highway Project and carried out by the highway bases. The roadsections selected in agreement with ME total about 365 km and comprise:(i) the road Atar-Choum (125 km); (ii) a 40 km section of the road Akjoujt-Atar; (iii) the road Boghe-Kaedi (100 km); and (iv) two sections of the roadKaedi-Kiffa (totalling 100 km).

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4.10 These sections are now mere earth tracks without definite alignments,and traffic on them is periodically interrupted. The works proposed includeearthworks on new alignments to avoid sandy or flooded areas, and constructionof surface courses and of drainage and light river-crossing structures (con-crete causeways).

Feasibility Study and Detailed Engineering of the Rosso-Boghe Road (200 km)

4.11 This is the most heavily trafficked of the unpaved roads. It crossesthe flooded area along the Senegal River, and is closed to traffic for almostsix months of the year. Economic and engineering investigations are requiredto determine the appropriate construction standards, and to select definitealignments, the types of river-crossing structures, and the road materialsto be adopted. These studies will be carried out under the project in twophases. (i) feasibility study, and (il) detailed engineering, if justified.

B. Cost Estimates

4.12 The total capital cost of the project is estimated at US$13.million equivalent, of which US$9.5 million are foreign costs and US$4.2million equivalent local costs, including US$2.4 million in taxes. Detailsof project costs are given in Tables 7 and 8 and summarized below:

(UM millions) (US$ '000 Equivalent) ForeignLocal Foreign Total Local Foreign Total Component

A. Technical Assistance 21.5 85.5 107.0 430 1,710 2,140 80

B. Preinvestment Studies 7.0 28.5 35.5 140 570 710 80

C. Betterment Program 121.0 80.5 201.5 2,420 1,610 4,030 40

D. EquipmentProcurement /1 - 174.8 174.8 - 3,495 3,495 /1 100

E. Contingencies:

- Quantities (10% onitems C and D) 12.0 25.5 37.5 240 510 750 68

- Prices (about 20%of total A-D) /2 47.0 80.2 127.2 940 1,605 2,545 63

TOTAL 208.5 475.0 683.5 4,170 9,500 13,670 69

(rounded) 4,200 9,500 13,700 69

/1 Including a grant of about US$300,000 equivalent (UM 15 million) for con-sulting services (para. 4.08).

/2 Details in para. 4.14.

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4.13 The above cost estimates, which reflect prices at end-1974, have beendetermined as follows:

(a) for technical assistance and preinvestment studies, recentBank Group-financed contracts;

(b) for the betterment program, preliminary survey of the roadsections to be improved, and expected operating costs of thehighway bases; and

(c) for equipment procurement, CIDA estimates.

The operating costs of the highway bases have been determined from indicationsgiven by ME, and supported by statistical data compiled in other West Africancountries on the use of various types of highway equipment. Considering anannual output of 50 km per year for each of the two highway bases, the unitcost of the betterment works (including drainage and river-crossing structures)amounts to US$11,000 per km, without provision for equipment renewal.

4.14 A physical contigency of about 10% has been added to the cost of thebetterment program and the equipment procurement items. Price contingenciesfor technical assistance, studies, and the betterment program, have been cal-culated in accordance with the most recent Bank Group guidelines, and takeaccount of the following inflation rates: for 1975, 11% on goods and servicesand 15% on civil works; for 1976-79, 7.5% on goods and services and 12% oncivil works. For equipment procurement, CIDA has considered 17% for priceescalation over one year. Expected dates of project completion are mid-1976 forequipment purchase and preinvestment studies, and mid-1979 for technicalassistance and the betterment program.

C. Financing and Disbursements

4.15 The project will be financed by the Association, the Kuwait Fund forArab Economic Development (KF), by Canada through the Canadian InternationalDevelopment Agency (CIDA), and the Government, under separate agreements for eachaid agency. The following financing arrangements have been agreed:

(a) the Association and KF will jointly finance the total costs(net of taxes) of technical assistance, preinvestmentstudies, and the betterment program;

(b) Canada will finance 100% of foreign costs for equipmentprocurement and related services; and

(c) the Government will finance the tax component of theproject.

Table 9 gives details of the financing plan. Table 10 shows the estimatedschedule of disbursements from the proposed IDA Credit of US$3.0 millionequivalent.

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4.16 In order to ensure that the interdependent aspects of the projectitems are adequately taken into eLccount by the co-lenders, the Associationhas entered into an understandin; with each of the other lenders according towhich the co-lenders agree to comlpare progress made in implementation of eachpart of the project, and to revise the implementation schedule if necessary soas to maximize the benefits to be derived from each of these parts. In parti-cular, the understanding for joint financing reached between the Associationand KF provides, inter alia, that: (i) each agency will keep the other fullyinformed of planned supervision mLissions in order to allow its participationif desired, and they will exchange views and information on the results ofsuch visits; (ii) the Associatior. will act on behalf of KF regarding implemen-tation of technical assistance and preinvestment studies; and (iii) thebetterment program will be adminlstered and supervised by both the Associationand KF. The Association will review on KF's behalf withdrawal applicationsfor disbursements against expenditures for technical assistance and preinvest-ment studies; withdrawal applications for the betterment program, accompaniedby supporting evidence, will have to be reviewed and approved by both agencies.

4.17 In addition to providirg the tax component of the project, theGovernment will allocate funds tc meet the recurrent costs of road maintenanceand betterment works not included in the project. These annual allocationswould cover operations carried out by the field subdivisions, and by the twohighway bases of Nouakchott and the Center Region which will not be involvedin execution of the betterment program. The Government has stated that itsroad maintenance allocation for 1975 would be UM 80 million, which is suffi-cient for the purposes above-mentioned, and for other road-related activitiesof the Infrastructure Department. The Government has agreed that, for thefollowing four years, the necessary allocations will be determined on the basisof maintenance requirements estimated by the technical assistance experts andreviewed with the Association (para. 3.13).

D. Execution

4.18 The Ministry of Equipment will be responsible for implementingthose parts of the project concerning highway development; the Ministriesof Planning and of Trade and Transportation will be responsible for thetechnical assistance to their respective Ministries. Consultants fortechnical assistance and for preinvestment studies will be selected onterms and conditions acceptable to the Association; terms of reference forthese services have been discussed and agreed. Signing of the consultants'contract for technical assistance to the Infrastructure Department will becondition of effectiveness of the proposed IDA Credit.

4.19 All roadworks for the betterment program will be done by thehighway bases of the North and East regions. Drainage works and river-crossing structures will be executed by contracts awarded to prequalifiedfirms following international competitive bidding in accordance with BankGroup guidelines; a preference margin of 7-1/2% will be granted to domesticcontractors. For contracts of less than US$100,000 equivalent each, but up

- 15 -

to an aggregate of not more than US$500,000 equivalent, awards will be madeon the basis of competitive bidding advertised locally and in accordance withlocal procedures satisfactory to the Association. However, if no reasonablebids can be secured for some of these works, the Government and the Associa-tion may agree that they be executed by force account. The technical assist-ance team will prepare the necessary engineering and supervise execution ofthe betterment works. Procurement of equipment to be financed by Canada willfollow the general conditions of CIDA.

5. ECONOMIC EVALUATION

A. General

5.01 Transport to all but a few places in Mauritania is costly, arduous,and hazardous; for instance, freight transport between Nouakchott andNema, (via the 1,400 km southern route), takes nine days at a cost of about5 Ougiya (USg10) per ton-km. Moreover, the poor state of the road networkmiakes year-round transport impossible except on the 500 km of paved roads.Nevertheless, because transport demand on the network is low, major extensiveupgrading of the system is clearly unjustifiable. The most appropriatestrategy to ensure improved access and reduced transport costs would be to dosome upgrading on road sections serving important traffic, and to carry outtimely spot improvements and effective maintenance on sections where demandremains low. The proposed project is in line with this strategy.

5.02 The principal aims of the project are to consolidate and expand themaintenance efforts started under the Second Highway Project, and to improvethe main road in the south, as well as a road in the north, to support thedevelopment of economic activity (including agricultural projects under theGolgol scheme) in the heavily populated region between Rosso and Kiffa (seeMap). Road betterment works under the project are expected to extend theseasonal use of the most important unpaved roads in the country, to reducetransport costs on these roads throughout the year, and to ensure greatertransport reliability even during the wet season. Benefits from the projectwill accrue almost entirely to the traditional sector of the economy where,together with agricultural projects either underway or planned, it will stimu-late economic growth.

B. Consolidation and Expansion of Highway Maintenance

5.03 The equipment and technical services included in the project willbe used to consolidate the reorganization of maintenance and training ofmechanics which was initiated under the Second Highway Project. More impor-tantly, provision of these services will extend the scope of training ofDPW staff to the actual execution of road maintenance. Besides the institu-tion-building benefit which will arise from the technical services, theexecution of maintenance will lead to: (i) reduction in vehicle operatingcosts, and (ii) an increase in the seasonal use of roads. The benefits

- 16 -

associated with (ii) have been estimated as equivalent to 1.25 times thosefrom (i) on the basis of actual increases in transport charges during periodsof poor roadway conditions; thesE' benefits would begin to accrue in the firstyear of the program, and would inLcrease steadily thereafter. The combinedaverage reduction in vehicle operating costs is therefore estimated at about1.5 Ougiya (USd3) per km for cars, 2.5 times that amount for light trucks, andfour times for heavy trucks. The economic life of the maintenance program,based mainly on the equipment comtponent, has been assured to be six years; alonger life is normally assumed for similar projects in other West Africancountries, but experience from the ongoing project demonstrates the case forusing a shorter life, due to harsh climatic conditions in the country.

5.04 Traffic levels have been assuned at the equivalent of 28 passenger-car units 1/ on the 2,600 km of roads to be maintained during the first yearof the project, about 23 on the 3,500 to be maintained during the secondyear, and about 19 on the total network of 4,380 km expected to be maintainedthereafter (1977-80). Traffic growth on this network is estimated at about4.5% p.a. over the life of the maintenance component of the project. Takinginto account all maintenance costs (including technical assistance) and theabove benefit inputs, this project item will yield a Benefit/Cost (B/C) ratio,at a discount rate of 10%, of 1.09, and an economic return of about 36% overthe six-year expected life of the capital investment.

5.05 In the absence of a detailed study, inputs of present and futureroad traffic, vehicle operating cDsts, and road maintenance costs used inthe foregoing evaluation have been based principally on the mission'sfindings, and on the Bank Group's experience for similar projects in otherSahelian countries. The estimates are rather conservative and provide agood indication of the expected minimum returns.

C. Betterment Program

5.06 The road betterment worlcs included in the project are confined tosections of the Boghe-Kaedi-Kiffa road in the south, and the Akjoujt-Atar-(ihoum road in the north. The forimer road is a section of one of the mostimportant transport links in the country. It constitutes the life-line forover 70% of the population, and serves the area considered most critical forlong-term economic viability. In spite of this importance, however, the roadis in poor condition even during the dry season, and during the wet season,is flooded and virtually impassab:Le. River transport is the substitute modeused during this latter period, but service is slow and unreliable, andbecause of the excessive handling and storage costs involved, transport isno cheaper than by road, especial]y if it were improved.

i/ One heavy truck accounts for 4 passenger-car units, and one light truckfor 2.5 passenger-car units.

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5.07 The project works on the Boghe-Kaedi-Kiffa road will substantiallyimprove the characteristics of the road, particularly with respect to lateritesurfacing and passage over water courses during the wet season. Directbenefits from road improvements result from reduction in vehicle operatingcosts. In quantifying these benefits, consideration has been given to thebenefits associated with a substantial increase in the use of 12-ton trucksin place of the 5-ton type following road improvement, as evidenced by theevolution of the vehicle fleet in recent years. Base year 1975 traffic hasbeen assumed at 75 vpd, comprising one-third each of heavy trucks, lighttrucks, and passenger cars. Traffic growth is estimated to be 10% p.a. duringthe first five years after completion of the works, and 5% p.a. thereafter.On the basis of an eight-year economic life for the road improvements, theinvestments yield an economic return of about 35% and a B/C ratio, at 10%discount rate, of 1.68. Additional benefits will be achieved from the inducedagricultural and livestock production resulting from these improvements, butthey have not been quantified.

5.08 The Akjoujt-Atar-Choum road is part of the link from Nouakchott,the administrative capital and an export/import outlet, through Atar, themost important trade center in the northwest, the Choum, a town located onthe MIFERMA railway (see Map). About 75% of the works envisaged are toconnect Atar and its environs with the railroad, and consequently with themining and industrial centers of the economy. In addition to the socio-economic impact which will be generated by the improved link between Atar'straditional sector and the modern sectors, road improvements will result ina reduction of vehicle operating costs. Present traffie on the road totalsabout 50 vpd (assumed to increase at 10% p.a.), of which some 90% are truckscarrying a mix of passengers and goods to and from the railway. On the basisof vehicle operating cost savings alone, the improvements are expected toyield an economic return of about 16% and a B/C ratio of 1.15 over their eight-year expected life.

5.09 The proposed project includes purchase of equipment required tocomplete the fleets of the four highway bases. Two of these bases will beoperating on the roads selected for betterment works under the proposed project.Equipment renewal for these two bases only has been taken into account incalculating the rate of return of the betterment program. Similar economicreturns should be possible from operation of equipment to be purchased for theother two bases, as the technical assistance experts provided under the proj-ect will help the Government with the selection of other road sections to bebettered and maintained. However, since these sections will be less homo-geneous than the two proposed for works under the project, no attempt hasbeen made to demonstrate their rate of return.

D. Feasibility Study and Detailed Engineering of the Rosso-Boghe Road (200 km)

5.10 This road is an important connection between Nouakchott and thecenter of ongoing and planned agricultural and livestock developments; itis part of the life-line for about 70% of the population, and is the mostheavily trafficked (about 110 vpd) of the unpaved roads in the country.Construction of the road, together with the betterment works proposed onthe Boghe-Kaedi-Kiffa road, will ensure year-round (instead of the present

- 18 -

half-year) access to the eastern region. Bank Group experience with similartypes of roads in West Africa indicate that it is economically feasible toupgrade them to a reasonable desLgn standard, and studies to determine thiswill be carried out under the proposed project.

6. AGREEMENTS REACHED AND RECOMMENDATION

6.01 During Credit negotiations with the Government, the followingprincipal items were discussed a-d agreed:

(i) an amount of UM 80 million has been included in the Goverrunentbudget for road maintenance activities in 1975; proposed highwaymaintenance programs ai-d budgets for 1976 through 1979 will befurnished to the Association for its review before September 15of each preceding year. The Government has also agreed that,whenever a commitment is made to construct a major new road,it will review with the Association the impact of such con-struction commitments in future maintenance budgets (paras. 3.13and 4.17);

(ii) consultants for technical assistance and preinvestment studieswill be selected on terms and conditions acceptable to theAssociation; terms of reference for these services have beenagreed (para. 4.18); aid

(iii) a 7-1/2% preference margin will be granted to domestic contractorsfor execution of selected works under the betterment program(para. 4.19).

6.02 In order to ensure that the interdependent aspects of the projectare adequately taken into account by the co-lenders, the Association has enteredinto an understanding with each if the other lenders that they will compareprogress made in limplementation of each part of the project, and will revisethe implementation schedule if necessary, to maximize the benefits to be derived.A separate agreement has been entered into with KF concerning execution andsupervision of joint-financed prDject items (technical assistance, preinvestmentstudies, and the betterment program) (para. 4.16).

6.03 Signing of the consultants' contract for technical assistance ta theInfrastructure Department of the Ministry of Equipment will be a conditionof effectiveness of the proposed Credit (para. 4.18).

6.04 The proposed project is suitable for a Credit of US$3.0 million tothe Government of Mauritania on standard IDA terms.

October 30, 1974

MAURITANIA

THIRD HIGEWAY PROJECT

Highway Classification arid Conditions

Improved _ Not ImprovedPassable Passable Passable Passable %of

BituLminous All Year Part Year All Year Part Year TOTAL Total

National 500 579 400 1,140 215 2,834 40%

Regional - 330 125 779 650 1,884 27%

Secondary - 32 180 443 - 655 9%

Non-Classified 120 80 427 1.000 1,627 23%

1,061 785 2,789 1,865

TOTAL 500 1,846 4,654 7,000

% of Total 7% 26% 66% 100%i/

/ Difference due to rounding.

Source: ME, Infrastructtire Department

Septenber 1974

TABLE 2

I4AURITANIA

THIRD HIGHWAY PROJECT

Vehicle Reg:Lstration - 1967-1973

Light HeavyCars Bases Trucks Trucks Trailers Tractors Total

1967 428 8 179 118 4 5 742

1968 651 il 326 79 7 4 1,078

1969 627 4 312 181 18 21 1,163

1970 618 10 300 133 26 18 1,105

1971 875 il 469 131 3 40 1,529

1972 921 22 358 169 il 8 1,489

19732/ 465 9 299 630 12 14 1,429

2/ Through September 1973.

Source: ME, Department of Transport

June 1974

TABLE 3

MAURITANIA

THIRD HIGHWAY PROJECT

Annual Qonsujption of Motor Fuel - 1968-1972(in m-3 )

1968 1969 1970 1971 1972

GASOLINE

SuperMIFERMA none none none none noneOther n/a n/a n/a 2,540 2,916

Total n/a n/a n/a 2,540 2,916

RegularMIFERMA 1,843 1,832 2,538 2,422 2,1243Other n/a n/a n/a 11,875 12.502

Total n/a n/a n/a' 14,297 149645

TOTAL Gasoline 12167 13,995 15,325 16,838 17 561

GAS-OIEL

MIFERMA 52,007 57,o68 61,204 47,564 62,2457Other 19,210 17,384 37,361 49,553 43,729

Total 71,217 74j452 98,565 97,117 106,186

TOTAL MOTOR FUEL

MIFERMA 53,850 58,900 63,742 49,986 64,600Other 29,534 29,577 50,148 63,968 59.147

GRAFND TOTAL 83&384 88,447 113,890 113,954 123,747

MIFERMA as %of Grand Total 65% 67% 56% 44% 52%

NOTE: n/a = not available.

Source: Department of Mining and Geology

June 1974

1IAURITANIA

THILD HIGHWAY PROJEv'T

I4iLnimum. Training Requirements

Total Total To Be Trained under To Be Trained underNeeded Available Hired Previous Project Proposed Project

Operators:

Trucks 89 63 26 44 25 + 45 = 70Iighway Equipment 48 43 5 30 18 * + 18 = 36

I4echanic Foremen 3 -- 3

Worksnop Superintendents:

Highway Bases 3 3 3*

Subdivisions 7 7 7*

Mechanics:

Central Workshop 19 8 il

Field 12 12 12*

3ubdivision Chiefs 9 -- 8

llighway Base Chiefs h __ h

Hiighway Foremen 18 __ 18

Tr,aining for these, started under the previous project, must be continued under the proposed project.

Source: BCEOM and mission estimates. |

September 1974

TABLE 5

MAURITANIA

THIRD HIGHiAY PROJECT

Hi{ghway e cpenditures - 1968-1975(in UM Millions)

Year Construction MaintenanceY'

1968 57.0 18.0

1969 201.,8 30,o

1970 413.4 4000

1971 248o3 5o.0

1972 15.9 55.0

1973 n.a. 60vO

1974 nua. 77.4

1975 n.ae 80oO *

* Figure supplied durinmg negotiations - October 19740

Source: ME, Infrastructure Department

l/ Road Fund.

June 1974

MAURITANIA

THIRD HIGHWAY PROJECT

Highway Equipment Requirements

Total To be To be3ubdivision Highway Base Total Available Retired Purchased

__________________ .Requirements Requi.rements Required (1973) (197) 197 1975 (1976)

Bulldozer (120 HP) 1 4 5 5 _ _ _(170 HP) _ 3 3 3 _ _ _ _

Motorgrader (120 HP) 8 7 15 13 5 - 7 _Tractor (Farm Type 65 HP) il 1 12 9 - - 3 _Front Erid Loader (35 iiF _ 7 7 9 2 - -Roller (Automotive 18 T) _ 3 3 1 - - 2 _Crane Truck (5 T) _ 1 1 - - - 1 _Road Broom 2 _ 2 - - - 2 _Roller (Towed) 5 1 6 6 - - -Low Bed Trailer _ 1 1 - _ _ 1 _Trucks (2 to 3 T) 8 7 15 12 - - 3 -Dump Trucks (7 T) 8 _ 8 10 4 4 2 4Dump Trucks (10 T) _ 28 28 22 11 il 17 ilTank Truck (Fuel 10,000 1) 2 2 4 - _ _ 4 _Tank Truck 8 8 16 7 2 5 il 5Pick-Up Truck 1 1 1 - - _Larnd Rover 7 8 15 19 8 5 4 5Patching Unit _ 2 2 2 _- -

Source: BCEOM and Infrastructure Department, ME

September 1974

TABLE 7MAURITANIA

THIRD HIGHWAI PROJECT

Project Cost Estimates

UM (million) US$ OOO Ecuivalent ForeignLocal Foreign Total Local Foreign Total Component

A. Technical Assistance

(i) Services 18.0 73.0 91.0 360 1,460 1,820 80(ii) Vehicles --- 305 3,5 --- 70 70 100

(iii) Didactic Material --- 3.0 3.0 --- 60 60 100(iv) Office Construction 3.5 2.0 5.5 70 40 110 36(v) Office Furniture &

Equipment ___ 1.5 1.5 --- 30 30 100(vi) Fellowships --- i.5 2.5 ___-- 50 50 100

Sub Total A 21.5 85.5 107.0 430 1,710 2,140 80

B. Preinvestment Studies 7.0 28,5 35.5 14o 570 710 80

C. Betterment Program

(i) Operating Costs of theHighway Bases 100.5 405 141.0 2,010 810 2,820 29

(ii) Drainage and RiverCrossing Structures 20.5 40.0 60o5 410 800 1.210 66

Sub Total C 121.0 80.5 201.5 2,420 1,610 4,030 40

Sub Total A-C 119-5 194h5 34 .0 2,990 3.890 6.880 57

D. auiq_pment Procurement(See Details, Tabl i )

(i) Equipment, Spare Parts& Workshop Equipment --- 159.8 159.8 --- 3,195 3,195 100

(ii) Consultant Services --- 15.0 15.0 --- 300 300 100

Sub Total D --- 174.8 174.8 --- 3,495 3,1495 100

E. Contingencies

(i) On Items A-Ca. Quantity (10% on

Item C, 12.0 8.0 20.0 240 160 400 40b, Pricesà 4770 47.5 94.5 940 950 1 890 50

-9*0 =1 1145 =1,10 -1v11 2,290 48(li) On Item D

a. Unforeseen Factors(10%) --- 17.5 17.5 --- 350 350 100

b. Prices2/ (Including(ii) a.)__ 32s7 32.7 __ 6 6556 ~ 100

50,250,2 --- 1l005 10005 100

Sub Total E 59.0 10507 16&7 1.180 2 115 3.295 64

TOTAL 750 8 17 9.500 13.f70 69

(rounded) 4,200 9,500 13,700 69

/ Based on annual price increases as follows: Year Services & Equipment Civil Works

75 11% 15%76-79 7.5% 12%

/ Year 1975: 17%.

Source: ME, Appraisal Mission. for equipme t- CID&.

October 1974

MAURITANIATABLE 8

PROPOSED THIRD HIGHWAY PROJECT

Cost Estimates for Mechanical Equipmentand Services

(US$'OOO)Description Quantity Unit Cost Cost (Rounded)

Motorgrader (120 HP) 7 2.0 294.0Tractor (Farm Type, 65 HP) 3 7.2 21.6Roller (Automotive 18 t) 2 38-0 640oTruck (2 to 3 t) 3 12.0 36,0Dump Truck (7 t) 6 250 0 150,0Dump Truck (10 t) 28 35>o 980.0Tank Truck (Water) 16 30.0 48000Land Rover 9 5h5 490 5Trailer 3 2.5 7.5Low-Bed Trailer 1 15.0 15.0Fuel Tanker (10,000 1) 4 32.0 128.0Road Broom 2 15.0 30.0Crane Truck (5 t) 1 37.0 37.0

Sub Total 2,292,6 2,295

Spare Parts Stock (about 15%) andWorkehop Equipment 45000 450

Freight & Insurance 45000 450

3,192.6 3,195

Consulting Services 300.0 300

3,49206 3,495

Contingencies:- Unforeseen Factors (10%) 34900 350

3,8416 3,845

- Price Escalation (1 year: 17%) 653.1 655

TOTAL 4,494-7

(rounded) 4.500

Source: CmA estimate.

October 1974

MAURITANIA

THIRD HIGHWAY PROJECT

Financing Plan

Costs Financing

(In Uu$100E Eauivalent)Total Total Net ! in Earentheses: Percentage of Total Cost)

Local ForeiEn Taxes Gross of Taxes IDA Kr Canada GOT

A. Technical AssistanceL/ 360 1,670 --- 2,030 2,030 890 (44) 1,140 (56) -Contingency: Price 80 315 --- 395 395

Sub Total 4 1,985 --- 2,425 2,425

B. Preinvestment Studies 140 570 710 710 320 (44) 390 (56)Contingency: Price 20 70 90 90

Sub Total 160 640 --- 000 00

C. Betterment Program 840 1,650 1,650 4,14C 2,490 1,10C (26) 1,390 (34) 1,650 (4C)Contingencies: Quantity 80 160 160 400 240

Price 280 565 560 05 845Sub Total 1,200 2,37 2,370 5J 9 4 3,575

D. Equipment Procurement --- 3,495 --- 3,495 3,495 -- 3,495 (100)Contingencies: Quantity --- 350 --- 350 350

Price 655 655 655Sub Total 4,500 --- 4,500 4,500

TOTAL PROJECT COST 1,800 9 500 2,370 13.670 11,300

.:Unallocated 690 8BO 1 005 720.Total Financing L0 33.00C t2 2*370

1/ Office construction cost included in Betterment Program.

Source: ME, Appraisal Mission; for equipment. CIlA.

October 1974

TAEIE 10

rAURITANIA

THIRD HIGHIWAY PROJECT

Estimated Schedule of Disbursements

IBRD/IDA Fiscal Year Cumulative Disbursementand Semester Ehding at end of Semester

(US$ Thousands)

1974/75

December 1974 ---June 1975 300

1975/76

December 1975 600June 1976 1,000

1976/77

December 1976 1,300June 1977 1,600

1977/78

December 1977 1,900June 1978 2,200

1978/79

December 1978 2,500June 1979 2,700

1979/80

December 1979 3,000

Source: Appraisal Mission

October 1974

TABLE 11

MAURITANIA

THIRD HIGHWAY PROAEOT

Operating Costs of Highway Egcuipment(in million IUM)

Annual Cost including Taxes

For one highway base + For aeven subdivisions +160 days p.a. 160 days p.a.

Spare Parts(reneval nd 1/wear and tear) 5.7 ô.5 (55%)-

Personnel(mechanics andoperators) 4.6 6.8 (10%)

Routine Maintenance 1.1 1.6 (10%)

Fuel 4.6 6.6 (55%)

Lubricants 1.1 1.5 (55%)

Total Operating Cost(rounded) 17.0 25.0

Provision for Reneval 7.5 12.9 (25%)

TOTAL COST (rounded) 25.0 38.0

1/ Approximate percentage of taxes.

Source: Infrastructure Departaent and mission estimates.

October 1974

IBRD 10995R

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