INTERNATIONAL BANK FOR RECONSTRUCTION AND...

LVfiJ FILE R EYSRESTRICTEDReport No. PTR=36a

This report was prepared for use within the Bank and its affiliated organizations.They do not accept responsibility for its 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

A SECOND HIGHWAY CONSTRUCTION PROJECT

BRAZIL

March 17, 1970

Transportation Projects Department

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Currency Equivalents (July 1969)

Currency Unit - New Cruzeiro NCrUS$1.00 - NCr 4.1US$1 million - NCr 4.1 millionNCr 1 million - US$243,900

Fiscal Year

January 1 to December 31

Units of Weights and Measures: Metric

Metric: British/US Equivalent

1 Kilometer (km) - 0.62 miles (mi)1 Meter (m) 2 - 3.28 feet (ft)1 Square Kilometer (km ) - 0.386 square mile (sq. mi)1 Metric ton (m ton) - 0.98 lg. ton1 Metric ton (m ton) - 1.1 US short ton

Totals may not add up because of rounding

BRAZIL

APPRAISAL OF THE SECOND HIGHWAY CONSTRUCTION PROJECT

Table of Contents

Page No.

SUMMARY .........................................

1. INTRODUCTION ................................... 1

2. BACKGROUNI) ......................................

A. General ........ ............................ 1B. Transport Policy ........................... 2

3. 'THE HIGHWAY SECTOR .............................. 6

A. The llighway Network; Characteristics andGrowth of Highway Traffic and the VehicleFleet ................................ 6

B. Highway Administration ..................... 6C. Highway Engineering ........................ 8D. Highway Construction ..... ............. 9E. Ilighway Maintenance ..... ............. 9F. Highway Financing and Planning ............. . 10

4. THE PROJECT ........ ............................. 11

A. General Description ..... ................... 11B. Highways to be Constructed and/or Paved 12C. Consulting Services for Design and

Construction Supervision .... ............. 12D. Cost Estimates and Financing .... ........... 13E. Execution of the Project ..... .............. 17F. Disbursement ............................... 18

5. ECONOMIC EVALUATION ............................. 19

A. Introduction ............................... 19B. The Project Roads .......................... 20C. Benefits from the Project .... .............. 23

6. RECOMMENDATIONS .................. ............... 24

This report has been prepared by Messrs. Schaefer (Engineer), Siret(Engineer/Economist) and Kanaan (Economist) who appraised the projectin September-October 1969.

TABLES

1. Freight Transport by Mode of Transport (1961-1968)2. Passenger-Kilometers, Percentage Shares and Average Annual

Growth Rates of Total and Selected Items by Mode ofTransport

3. Federal Investment in Transport by Modes4. Classification of Highways -- Lengths According to Type of

Jurisdiction, December, 19685. Relations Among Area, Population and Length of Highways, 19686. Relations Among Area, Population, and Number of Vehicles, 19677. Vehicle Registration, by State, 19678. Vehicle Fleet, 19679. Highway Design Standards for New Roads10. Admissible Highway Design Standards for Improvement of

Existing Roads11. Forecasts of Annual Investment Expenditures for High

Priority Road Construction and/or Paving Works.12. Tentative Financing Plan -- Federal and State Highways

(1970-1973)13. List of Roads for Construction and/or Paving14. List of Roads for Detailed Engineering15. List of Roads for Feasibility Studies16. Average Daily Traffic on Project Roads17. Estimated Vehicle Operating Costs18. Average Daily Traffic -- Selected National Highways, 196819. Internal Rates of Return for Roads Proposed for Construction

and/or Paving

CHIARTS

I. National Highway Department (DNER)IT. GEIPOTIII. lHighway Department of MaranhaoIV. State H-lighway Department - Recommended

Standard Organizational Structure

ANNEX

A. Transport Survey

I - Main RecommendationsII - Consultants Engaged in the Transport Survey

B. First Plan of Action (PA-1)Progress of Implementation

C. Second Plan of Action (PA-2)Outline of Measures and Objectives

D. Reorganization of the Highway Administration

E. The Project Roads

F. Consultants Engaged in the Preparation of the SecondHighway Construction Project

MAPS

1. General Highway Map2. Transport Survey - Phases I and II3. Maranhao, Piaui, Ceara4. Rio Grande do Norte, Paraiba, Pernambuco,

Alagoas5. Bahia, Sergipe6. Espirito Santo, Rio de Janeiro7. Minas Gerais8. Mato Grosso, Goias9. Parana10. Santa Catarina11. Rio Grande do Sul

ABBREVIATIONS

GEIPOT - Transport Study Group

DNER - National Highway Department

DER - State Highway Department

RFFSA - National Railways

DNPVN - National Port Organization

UNDP - United Nations Development Programme

USAID - United States Agency for International Development

USBPR - United States Bureau of Public Roads

ADT - Average Daily Traffic

IUCL - Sole Tax on Fuels and Lubricants

PA-1 - First Transport Plan of Action

PA-2 - Second Transport Plan of Action

BRAZIL


SUMMARY

i. The growing integration of Brazil's various regions requirescontinued improvement of transport facilities as well as additions tothe existing network. At the same time, there is a need for betterutilization of the facilities, more effective coordination of the dif-ferent modes and the elimination of railway deficits, one of the majorcauses of Brazilian inflation.

ii. Hiighways have assumed the dominant role in meeting the coun-try's needs for transport services. In 1968 highway transport accountedfor over 70% of total freight ton-km and 90% of passenger-km.

iii. Highlway administration is undergoing major changes with regardto the distribution of responsibilities. Many of the activities of theNational Highway Department (DNER) are over-centralized and there isduplication of services between National and State Highway Departments,especially in more developed and populated states which have adequatestate highway organizations. To remedy this situation the Governmenthas decided to transfer all maintenance and construction functions toState Highway Departments and leave the National Department to concen-trate on planning, regulation and overall supervision of the road net-work.

iv. Since 1964 the Bank has had a continuing exchange of viewswith the Government of Brazil regarding the improvement and extensionof the transport system. Following the Bank's recommendations a Trans-port Survey was launclhed in 1965 and carried out in two stages. Phase1, for which a US$1.5 million Bank grant was provided, covered highwaytransport in four states, railway transport, coastal shipping and portoperations for three of Brazil's principal ports. Phase II was initiatedin 1967 with financial assistance from UNDP and USAID and with the Bankacting as executing agent. It covered highway transport in fourteenstates and is now nearing completion. Prior to the First Highway Project(Loan 567 BR - see paragraph viii below) the Government submitted a Planof Action (PA-l) summarizing its transport objectives and giving schedulesfor action on highways, railways and ports. This Plan has been satisfac-torily implemented. Before negotiating the proposed loan, the Governmentsubmitted to the Bank a new Plan of Action (PA-2) outlining the measuresrequired to bring about further improvements in the transport sector.This is a suitable basis for a further loan for highways.

v. This project will be the second for highways in Brazil basedon the Transport Survey recommendations. It consists of: (a) the con-struction and paving of 872 km of primary and secondary highways, (b)

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the improvement and paving of 1,267 km of primary highways, (c) the de-tailed engineering and supervision of construction for the proposed works,and (d) additional consulting services for detailed engineering of about2,300 km of highways and feasibility studies on another 3,800 km, to re-inforce planning in the National Highway Department and to improve super-vision of highway construction. The total cost of the project is estimatedat US$255.1 million equivalent. The Bank loan of US$100 million equiva-lent will finance 40% of the costs of construction and consulting servicesrendered by Brazilian consultants and the foreign exchange component ofthe costs of foreign consultants. Total foreign exchange costs of theproject will be US$53.1 million, or about 53% of the amount of the loan.Retroactive financing will be provided to cover the foreign exchange com-ponent (US$300,000) of costs incurred for the detailed engineering of oneproject road designed by foreign consultants (X.Dorsch - Germany).

vi. About 50% of the roads included for construction and/or pavingare located in the Northeast, one of the poorest regions of Brazil. Theconstruction program proposed under this project will meet this region'smost urgent highway needs. The program of feasibility and detailed en-gineering studies included in the project emphasizes the development ofBrazil's western region, where the main barrier to development is thelack of transportation to distant markets. The proposed studies willcover the region's most important trunk roads.

vii. Detailed engineering is complete for all project roads and issatisfactory.

viii. The first highway construction loan (Loan 567-BR, US$26 million)was signed in 1968 and despite initial delays in making it effective, isproceeding satisfactorily. Two railway projects were financed in 1952(Loan 65-BR, US$12.5 million) and 1953 (Loan 92-BR, US$12.5 million) and ahighway maintenance project in 1953 (Loan 75-BR, US$3 million); all threeloans have been fully disbursed.

ix. Execution of the project will be the responsibility of theNational Highway Department for national highways and of the respectivestate highway departments for state and/or delegated national highways.The loan will be to the Federal Government, and the National HighwayDepartment, as executing agency, will administer a revolving fund forpayments to contractors, and consultants. Project agreements will besigned not later than the loan agreement between the Bank and thosestates where project works are to be carried out on state and/or dele-gated national highways.

x. Contracts for the project works will be let on the basis ofinternational competitive bidding and the National Highway Department isproceeding with the prequalification of contractors.

xi. Economic rates of return for the different roads range from17% to 47%.

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xii. The project provides a suitable basis for a Bank loan of US$100million equivalent. On the basis of the average economic life of roadconstruction works and length of construction period, the appropriateterm would be 25 years, including a four-year period of grace.

BRAZIL


1. INTRODUCTION

1.01 The Government of Brazil has requested a loan to help finance(a) the construction and paving of 872 km of highways, (b) the improve-ment and paving of 1,267 km of highways, (c) the detailed engineeringand supervision of construction for the proposed works, and (d) addi-tional consulting and expert services to carry out highway feasibilityand detailed engineering studies on road sections already selected, toreinforce planning in the National Highway Department (DNER) and to im-prove supervision of highway construction works.

1.02 On the Bank's recommendation a general Transport Survey waslaunched in 1965 with the assistance of foreign consultants. The firstphase wps completed in 1967 and the second phase is nearing completion(para. 2.04). The First Highway Construction Project (Loan 567-BR in1968) was a direct outcome of Phase I of the Transport Survey. It in-volved the construction and/or paving of various road sections totalling429 km. Delay in passing the necessary legislation required a 2-1/2months postponement of the effective date of the Loan but this did notinterfere with the bidding and contracting process. The Loan was declaredeffective on May 16, 1969, all construction contracts have been approvedby the Bank and construction has begun on all project roads.

1.03 Other Bank projects in the transportation sector included tworailway projects financed by Loan 65-BR and 92-BR (US$12.5 million each)in 1952 and 1953 covering the rehabilitation of the Central do Brasil fa-cilities and the purchase of new rolling stock. A highway maintenanceproject was financed by Loan 75-BR (US$3 million) in 1953 covering thepurchase of maintenance equipment for the State of Rio de Janeiro. Allloans have been fully disbursed.

1.04 This report has been prepared by Messrs. Schaefer (Engineer),Siret (Engineer/Economist) and Kanaan (Economist) who appraised the pro-ject in September-October 1969.

2. BACKGROUND

A. General2

2.01 Brazil, with an area of 8.5 million km , is the fifth largestcountry in the world. The estimated 1969 population was 92.3 million andpopulation growth averages 3% p.a. Overall population density is low,at about 11 per kn 2 , but there are great regional variations, rangingfrom 3,000 per km2 in the State of Guanabara to less than one per km inthe Amazones. Brazil has a broad range of ecological conditions which

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permit production of all tropical, sub-tropical and temperate crops. Un-developed land and water resources are vast and there is a great potentialfor expansion of agricultural production. In the last two decades, growthand diversification of industrial production have been remarkable, and thecountry is now self-sufficient in most industrial products.

2.02 In 1968 Gross National Product at market prices was estimatedat about NCr 91.7 billion (1968 prices - US$27.0 billion equivalent).Per capita GNP in the same year was about US$302 equivalent. While theearly sixties were characterized by sluggish growth and high inflation -up to 90% p.a. - major progress towards sustained growth has been regis-tered in more recent years. In 1968 GNP grew 7.4% in real terms, whilethe cost of living increase for the year was 24%. Prospects for continuedgrowth and gradual reduction of inflation appear good (Economic Report WH195a).

B. Transport Policy

2.03 Because of the heavy reliance of the economy on export cropsand the need to open up new lands for productive use, transport has alwaysplayed a dominant role in Brazil's economic development. The growing inte-gration of the various regions now requires continued improvement of trans-port facilities as well as additions to the existing network. There isalso a need for better utilization of the facilities, more effective co-ordination of the different modes, and the elimination of railway operat-ing deficits, one of the major causes of the Brazilian inflation.

2.04 Since 1964 the Bank has had a continuing exchange of views withthe Government of Brazil regarding the improvement and extension of thetransport system. In 1965 the Government agreed with the Bank's recom-mendation to launch a Transport Survey. The Survey was carried out byconsultants in two stages. Phase I, covering highway transport in fourstates, railway transport, coastal shipping, and port operations forBrazil's three main ports, was started in 1965 and completed in 1967.A Bank grant of US$1.5 million was provided to finance half of Phase Iforeign exchange costs while the other half was covered by the Government.Phase II, covering highway transport in fourteen states, was started in1967 and is nearing completion. Phase II foreign exchange costs were fi-nanced by UNDP (US$1.4 million), USAID (US$1.0 million) and the Government(US$1.4 million). All local costs for Phase I and II were financed bythe Government. The Bank acted as executing agent. The main recommenda-tions from these studies are summarized in Annex A.

2.05 Both Phases of the Survey were conditional on the Governmentagreeing to Memoranda of Understanding on steps to be taken to improvetransport services. Prior to Loan 567-BR the Government submitted aPlan of Action (PA-1) summarizing its transport objectives and givingschedules for action on highways, railways and ports. This Plan has beensatisfactorily implemented (Annex B). The Government has submitted tothe Bank a new Plan of Action (PA-2) outlining the measures required tobring about further improvements in the transport sector (Annex C). This

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is a suitable basis for a further loan for highways. The principal mea-sures included in PA-2 are referred to in the following paragraphs.

TranSport Coordination

2.06 To coordinate and supervise the Transport Survey, as well asto provide counterpart personnel and required facilities, a Governmentagency - Grupo Executivo de Integracao da Politica de Transportes,GEIPOT - was established in 1965. The survey is now about complete andGEIPOT has been formally established as a permanent agency within theMinistry of Transport (Cihart II). As such, GEIPOT will be responsiblefor the elaboration of a national transport policy with a view to improv-ing coordination between the various modes of transport and reducingoverall transport costs. Tnis reorganization has not yet been fullyput into effect anid its implementation is one of PA-2's main objectives.

2.07 One of the important tasks of the Transport Survey was to under-take a study on highway pricing policies. Regional analyses have beenconducted and the coordinating consultants of Phase II (KAMPSAX-Denmark)have recently submitted a report including recommendations for a nationalpolicy for road user charges. The report concludes that (a) the amountof fuel taxes that would be collected from highway users during the pe-riod 1969-1976 would fully cover the economic costs of interurban high-ways - marginal costs, i.e. variable costs of maintenance of highways -but only about 70% of the incremental costs of administering, maintain-ing and expanding the highway network in that period, and (b) the revenuesfrom charges levied on various types of vehicles do not reflect theirrelative use of the hiighway system nor their effect upon the physicaldesign of highways. Automobile traffic carries the main burden of chargeswhile heavy vehicles contribute insufficient amounts in relation to theiruse of road facilities. The above shortfall of fuel revenues below in-cremental costs is overstated, in that significant amounts of other taxespaid by vehicle owners and users are excluded -- e.g. the road tax (para.3.21). If proceeds from these taxes are added, the gap would be onlyaround 10-15%. To improve resource allocation in the transport sectora restructuring of these charges, in the sense of shifting more of theburden to truck traffic, should be carried out promptly. This would notsignificantly increase the level of taxation in the private sector whichis already bearing a heavy tax burden (IBRD WH 195a). Under PA-2 the Gov-ernment has stated its intention to discuss the report's recommendationswith the Bank in the course of 1970, with a view to formulating a nation-al policy for road user charges.

2.08 PA-1 envisaged that a new railway cost-based tariff would be in-troduced in 1969 with the cooperation of consultants (SOFRERAIL-France).Since these consultants commenced work only in July 1969, there has notbeen sufficient time to adopt new tariffs. PA-2 calls for the adoptionof a rate and fare policy based on the costs of the respective servicesand, pending implementation of this policy, rates and fares are to beadjusted periodically to keep in line with inflation.

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2.09 There is no administrative allocation of traffic as betweenmodes in Brazil and users are free to select that mode of transportwhich best suits their requirements. Entry to the interstate roadtransport industry requires DNER approval, but the granting of licensesis practically automatic. Intrastate trucking operators are licensedby the State Highway Departments (DERs) in the same way. Bus companiesmust apply to DNER or to DERs, prove public need and file tariffs andtimetables for each route. On the whole, road transport regulation isnot unduly restrictive.

2.10 In recent years about one fourth of total Federal fixed in-vestment expenditures have been in the transportation sector. This re-presents about NCrl,500 million (US$375 million equivalent) annually,of which close to 50% was spent on road construction (Table 3). At thestate level, the share of transportation in total capital expenditure isabout the same and is almost entirely directed to road construction. Inthe past the balance of investments among the various modes of transporthas been generally adequate, but some investments, particularly for rail-way line construction, have been made where the yield has been extremelylow. AU new railway line construction should be preceded by economicfeasibility studies and provision to this end has been made in PA-2.

Highways

2.11 Details of the highway sector are given in Chapter 3.

Railways

2.12 The railway network comprises about 30,400 route km of whichroughly 24,800 km are operated by a Federal company (Rede FerroviariaFederal - RFFSA) and 5,600 km by a State company (Sao Paulo State Rail-ways). In addition 630 km are owned and operated by a Government miningcompany (Cia Vale do Rio Doce - CVRD) and carry mostly iron ore traffic.About 90Z of the network is meter gauge track. Between 1961 and 1968railway freight traffic (excluding CVRD) increased from 10.4 billionton km to 13.5 billion ton km, but passenger traffic declined from 18.0billion passenger km to 13.4 billion passenger km. In relative termsthe railways have been losing traffic to other modes of transport. Be-tween 1961 and 1968 the rail share of total freight traffic movements de-clined from 18.2% to 14.4%, and of passenger traffic from 37% to about 8%(Tables 1 and 2).

2.13 In recent years railways operations - both Federal and State -have been characterized by heavy financial deficits. In 1963 the op-erating ratio for RFFSA reached 358 with an operating deficit of US$237million equivalent. Excess labor, obsolete equipment, maintenance ofuneconomic lines and lags in tariff adjustments were largely responsiblefor these deficits.

2.14 Under PA-1 a series of measures was envisaged to improve RFFSAoperations. The principal measures were: administrative reorganization,

closing of uneconomic lines and stations, improvements in operating ef-ficiency (dieselization), reorganization of accounting, restructuring oftariffs, and reduction in personnel. Implementation of this program hasprogressed satisfactorily (Annex B), with encouraging results. The 1968operating deficit was reduced to US$142 million equivalent (US$102 millionequivalent if concessionary services to Government are "normalized" i.e.priced at commercial rates) and the operating ratio - before normaliza-tion - reduced to 200. Further progress can be expected, provided strictredimensioning and rehabilitation policies are followed. The objectivesand measures listed in Annex C are the main components of such policiesand have been included in PA-2.

Ports

2.15 There are 35 ports of importance along the coastline of Brazil.Total port traffic in 1967 was about 65.6 million tons of dry cargo. Ofthis, about 16.9 million tons were handled at Santos and 14.8 million atRio de zaneiro. The specialized ore port of Vitoria handled 6 milliontons.

2.16 Overall supervision of activities in the port and waterwayssubsector is in the hands of the National Department of Ports and Water-ways (DNPVN). This organization is over-centralized and lacks the flexi-bility of operation which is essential in the maritime trade. Decentral-ization of port administration, adoption of modern accounting proceduresand establishment of cost-based port charges were the main items includedin PA-1 in relation to port operations. Progress has been slow but im-plementation of the recommended measures has started (Annex B). The fur-ther steps to be taken in these fields and the introduction of systematictraining of personnel are in PA-2 (Annex C).

Coastal Shipping

2.17 In terms of ton kilometers, coastal shipping carries about 13%of the country's total freight traffic. The present fleet is too largefor the available cargo and generally overage. The Transport Survey re-commended the establishment of fixed sailing schedules and the merger ofshipping companies, but little progress has been recorded.

Air Transport

2.18 Because of its large size, Brazil is relying increasingly onair transport. In recent years the annual passenger traffic growth ratehas been 12.5%. The major commercial airline company (VARIG) has exten-sive domestic and international networks linking Brazil with other citiesin South and North America, Western Europe and Africa.

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3. THE HIGHWAY SECTOR

A. The Highway Network; Characteristics and Growth of Highway Trafficand the Vehicle Fleet

3.01 Brazil has a total road network of about 933,000 km of which40,000 km are national and 114,000 km are state. The balance includesmainly earth roads and tracks - feeder roads and links between minortowns - under jurisdiction of the municipalities. About 16,500 km or40% of the national network are paved, but only 19,300 km and 3,800 kmof the state and municipal networks have concrete or bituminous pave-ment (Table 4).

3.02 Tables 5 and 6 show the relation between area, population,motor vehicle registrations and length of paved and unpaved highways ineach state. In all states, except Sao Paulo and Guanabara, only a smallpercentage of the national and state highway network is paved. In gen-eral there is a need to extend the road system and to improve existingroads, including the upgrading of the pavement.

3.03 Between 1961 and 1968 total freight traffic in Brazil increasedfrom 75 billion ton km to 148 billion ton km, or at an average rate closeto 10.5% p.a. Road traffic over the same period rose by approximately12.5% p.a., while rail transport and coastal shipping grew only at 7.2%and 4.5% p.a. respectively. This was reflected in an increase of the roadshare of total freight traffic from 63% in 1961 to over 72% in 1968 (Table1). Total intercity passenger traffic expanded from 49 billion passen-ger km in 1961 to 108 billion passenger km in 1968. Over the same periodthe road share of passenger traffic rose from 78% to 92% (Table 2). Thetotal vehicle fleet in 1967 was estimated to be about 1.9 million carsand pick-ups, 53,000 buses, and 429,000 trucks. In recent years, thegrowth of the fleet has averaged 8% p.a., and in 1967 the vehicle densitywas one for every 28 persons, the third highest in Latin America. Prac-tically all vehicle needs are met by domestic production (225,000 p.a.)and future growth of the fleet is not expected to be limited by productivecapacity. About half of the truck fleet is 5-9 tons capacity, gasolinepowered; heavy diesel trucks of over 15 tons capacity account for only7% of the truck fleet (Tables 7 and 8).

B. Highway Administration

3.04 The organizations of the National Highway Department (Departa-mento Nacional de Estradas de Rodagem - DNER) and of one typical StateHighway Department (DER) are shown on Charts I and III. The standardorganizational structure for state Highway Departments recommended bythe Transport Survey is shown on Chart IV.

3.05 DNER, under the Ministry of Transport, is responsible for theadministration of the national highway network. It carries out its re-sponsibilities for maintenance and construction through 20 district of-fices in the states and federal territories. State highway departments

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are similarly responsible for state networks. In view of the size ofBrazil and the complexity of its road network, many of DNER's activitiesare too centralized. Furthermore, there is duplication of services be-tween the National and State Highway Departments, especially in the moredeveloped and populated states which have adequate highway organizations.To eliminate this duplication and reduce centralization, the Governmenthas decided to gradually transfer maintenance and construction functionsfrom DNER to the DERs. DNER will thus be able to concentrate on theplanning, regulation and overall supervision of the road network.

3.06 The first steps towards this new distribution of responsibil-ities have been taken. In 1968, Brazilian management consultants - GetulioVargas Foundation - completed the first phase of the study of DNER's re-organization. Decree 64,242 and Decree-Law 512, both passed in March 1969,have formally introduced DNER's new organization (Chart I), which is basedon modern administrative principles and places emphasis on DNER's planningfunctions. The second phase of the Vargas study started recently with theobjective to define new and more efficient operational procedures and me-thods. For this second phase, which requires specialized engineering ex-pertise, technical assistance by the U.S. Bureau of Public Roads is to beprovided under an existing USAID loan. The Government has confirmed theagreement reached for Loan 567-BR that DNER's reorganization would be im-plemented no later than 1971. Under PA-2, the Government has expressedits intention to implement DNER's reorganization with U.S. BPR assistance.

3.07 Concurrently with DNER's reorganization, the strengthening andreorganization of DERs has commenced. During the two phases of theTransport Survey, reorganization studies were conducted for the mainstates in Brazil.* The objective of these studies was to increase theefficiency of the DERs and thus prepare for a gradual transfer of DNER'smaintenance and construction function to the respective DERs.

3.08 Important steps to carry out the recommendations of these studieshave already been taken in several states (Annex D). Assurances have beengiven by the Government that in those states where project constructionworks are to be carried out on state and/or delegated national roads theDERs will be reorganized. Such reorganization will be based on the Trans-port Survey recommendations and coordinated with the delegation of main-tenance functions for Federal roads (para. 3.09). Under PA-2 the FederalGovernment has indicated that it will ensure that reorganization of DERswill also be gradually carried out in all states covered by the TransportSurvey.

3.09 Proceeds of the uniform road tax are earmarked for maintenancepurposes (para. 3.21). To back the transfer of maintenance responsibil-ities by adequate funding, DNER has stated its intention to allocate its

* The study for DER Sao Paulo was financed by USAID and carried outseparately but was concurrent with reorganization studies carriedout for the other states.

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share of tax collections to those states undertaking to maintain the na-tional network. The Government has agreed that delegation of maintenancefunctions and transfer of necessary resources will be carried out in thosestates where project construction works will be undertaken on state and/ordelegated national roads. Under PA-2, the Government has stated that suchdelegation will be extended gradually to all main states.

3.10 In the future DNER will exercise much closer supervision overthe planning and financing of state highways. Decree Law 512 which re-organized DNER, has given it necessary legal powers. This is in linewith the Government's new policy to gain control over local governmentscapital expenditures by insisting upon a review of local government pro-grams prior to capital transfers (Economic Report IBRD WH 195a). In thefuture there will therefore be the basis to ensure that economic criteriaare followed in the selection of new highway investments. DNER's controlhas, however, not yet been exercised, largely due to the lack of properstaffing in the planning department which employs only 8 engineers andhas no economists. Under the proposed project, strengthening of DNER'splanning capacity is to be arranged (para. 4.08) and one of the objectivesof PA-2 is that DNER make use of its legal right to control state capitalexpenditures for roads.

3.11 In recent years a serious obstacle to efficient highway admin-istration has been the chronic understaffing of DNER resulting from thelow salaries offered and the freeze on Government recruitment. In 1969new and substantially higher salary scales were adopted for DNER and limi-tations on recruitment of professionals were relaxed. This should enableDNER to attract and keep capable personnel.

C. Highway Engineering

3.12 Design standards, agreed by the Bank and adopted for the FirstHighway Project (Loan 567-BR), have now been legalized as general designstandards for the entire country (Tables 9 and 10). They have been usedfor the engineering of all highway works included in the project.

3.13 The Transport Survey, which was carried out by foreign consult-ants assisted by local counterparts, has had a major impact on Brazilianengineering practices by introducing systematic economic evaluation oftransportation projects. Drawing on this experience, able consultingfirms have been established in nearly all of the major states of Brazil.All studies* for the preparation of the proposed project were carried outby local consultants.

3.14 The regulatory provisions for maximum motor vehicle weight anddimensions are satisfactory. The maximum axle load is 10 Tons for single

* (Except for highway BR 324, for which foreign consultants were em-ployed, see paras. 4.05 and 4.14)

axles and 17 Tons for tandem-axles. In recent years the enforcement ofweight regulations has improved, but it is still unsatisfactory. DNERhas now 41 weighing stations installed or on order. The Government hasconfirmed that vehicle regulations will be enforced on the whole nationalnetwork, as well as state networks in those states where project workswould be carried out on State and/or delegated national roads (MinasGerais, Santa Catarina and Rio Grande do Sul).

D. Highway Construction

3.15 In the past, shortages of funds often delayed payments to con-tractors and it was difficult for DNER to enforce work schedules. Fur-thermore, the shortage of DNER's personnel often led to inadequate super-vision. As a result, quality of construction was often poor and longextension of contractual work periods was common. Although the situationis somewhat improved, it is still not satisfactory and the Government hasdecided to adopt the policy of employing consultants to reinforce DNER'slimited supervisory staff. Provision to this effect is included in PA-2.

3.16 The local construction industry is well developed, and its meth-ods and equipment are up-to-date. Prequalification of contractors for worksunder the First Highway Project showed that over 25 firms have the tech-nical and financial capacity to handle large scale highway contracts.

3.17 In the last five years the Brazilian construction industry hascarried out highway works amounting to US$500-600 million equivalent peryear. Under the most limiting conditions, i.e., assuming no foreign par-ticipation, construction included in this project would add only 15% tothe current volume of work. No construction capacity shortage is expected.

3.18 In the past, DNER limited itself to reviewing the technical ca-pacity of contractors, giving little attention to their financial capac-ity. With the First Highway Project, international practices regardingbidding and contracting were introduced in Brazil. It is now DNER's pol-icy gradually to eliminate former practices, extend the use of prequali-fication of contractors, and call for bids based on contractor's unit prices.

E. Highway Maintenance

3.19 Maintenance has long been neglected in Brazil. The lack ofproper organization, equipment and funds have made it difficult to keeproads at a suitable level of traffic serviceability. However, in thelast five years USAID has given considerable financial assistance toseveral states for the purchase of new equipment, and marked improvementsin the operations can now be observed.

3.20 Consultants for Phase I and II of the Transport Survey wereentrusted with maintenance studies for all states concerned. All reportsare now available and include recommendations for improvements in mainte-nance methods and operations, procurement of equipment and materials,preparation of general maintenance programs and required organizational

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changes. The consultants have also prepared estimates of maintenancecosts and developed appropriate maintenance accounting systems. Thiswill provide the highway management with a valuable tool for controllingand improving the efficiency of maintenance operations.

3.21 Decree Law 999 of October 1969 made the road tax on vehiclesuniform for the whole country. A charge equivalent to a maximum of 2% ofthe assessed value of the vehicles will now be levied annually, the pro-ceeds to be earmarked for maintenance and distributed 40% to DNER and 60%to states and municipalities. Tax collections are expected to total aboutUS$40 million in 1970 and to grow at 8% p.a. thereafter. The provision ofadequate resources by the road tax, as well as the combining of all mainte-nance functions in the hands of state authorities, should result in a con-siderable improvement of maintenance operations. During loan negotiationsthe Government confirmed that it will properly maintain the whole nationalnetwork, and the state networks in those states where project works willbe undertaken on state and/or delegated national highways (Minas Gerais,Santa Catarina, and Rio Grande do Sul).

F. Highway Financing and Planning

3.22 The main source of revenues for highway purposes is the federaltax on fuels and lubricants (Imposto Unico Sobre Combustiveis e Lubrifi-cantes - IUCL). In 1968 proceeds from this tax totalled about NCr 1,840million (US$460 million). Close to 80% of the collections are placed intothe National Road Fund. The remainder is shared between the GovernmentOil Monopoly (Petrobras), the railways and the Ministry of Mines andEnergy. The Road Fund is distributed to DNER (50%), the DERs (40%) andmunicipalities (10%). The allocation among states is based on population,area, fuel consumption and production of crude and refined oil. Resourcesfrom IUCL can be used to cover capital or current expenditures.

3.23 Three other federal taxes, set apart for highway purposes, arelevied on road users: the road tax (para. 3.21), the vehicle insur-ance tax (10% of insurance premiums), and a tax on inter-urban bus fares(5% of the fare). The road tax is earmarked for highway maintenance andthe insurance tax for road safety. The states and municipalities alsoimpose other taxes and fees but total receipts from these are relativelysmall.

3.24 Earmarked resources are supplemented at the state and municipallevels by budgetary allocations. Large federal budgetary appropriationswhich characterized the early sixties have now been almost totally dis-continued.

3.25 To execute all high priority road projects identified duringthe transportation survey and shown in the Master Plans, additional re-sources amounting to NCr 1,020 million (US$249 million equivalent) shouldbe secured each year (Tables 11 and 12). Under the proposed project,detailed engineering studies for 2,290 km and feasibility studies for anadditional 3,814 km of highways will be undertaken (para. 4.07). This

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will ensure preparation of projects for which Bank financing could beconsidered in 1971 and 1972. If Bank participation were to be based onthe present cost sharing formula (40% of construction costs), commitmentsin 1971 and 1972 may be of the order of US$80-100 million equivalent ineach year. If the preparations being made were to result in such lending,by 1971 Bank disbursement would cover about 40% of the deficit.

HighwayaPlanning

3.26 A National Transport Plan, covering all modes of transport, waspublished in 1964. It is based on a 25-year program which, in the high-way field, provides for the construction of some 95,000 km of roads. With-in this program there is a Preferential Plan which was updated in 1967 andwhich lists about 25,000 km of priority roads. Both of these plans arevery broad and do not unduly restrict the more meaningful shorter termprogramming. All these documents are due for revision in 1970.

3.27 In 1967 a 3-year investment budget (1968-70) was prepared whichforms the basis for annual budgets. Investment programs in the 3-yearbudget and in recent annual budgets are essentially based on TransportSurvey Master Plan priorities. The main exceptions are for low cost pene-tration roads with modest design characteristics, planned to open upvirgin territory.

3.28 In order to update and continue the Master Plans and to ensurethat economic priorities guide highway investment decisions, it will benecessary to (a) improve the present data collection and processing sys-tem, (b) establish within DNER a central investment review mechanism forboth national and state projects (para. 3.10) and (c) strengthen DNER'splanning office. Under the proposed project, assistance will be providedto this end (para. 4.08).

4. THE PROJECT

A. General Description

4.01 The proposed project, identified on the basis of Highway MasterPlans prepared during Phases I and II of the Transport Survey, consists of:

(1) The construction, including paving, of a total of 872 kmof highways in the states of Bahia, Minas Gerais, Goias,Santa Catarina and Rio Grande do Sul (see Maps 1, 5, 7, 8,10, 11);

(2) The improvement and paving of a total of 1,267 km ofhighways in the states of Piaui, Ceara, Bahia, EspiritoSanto, Rio de Janeiro, Minas Gerais and Santa Catarina(see Maps 1, 3, 5, 6, 7, 10);

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(3) Detailed engineering and construction supervision for theabove highways; and

(4) Additional consulting services to:

(a) carry out detailed engineering for 2,290 km ofselected road sections;

(b) carry out feasibility studies for 3,814 km ofselected road sections;

(c) strengthen the planning department of DNER; and

(d) improve methods and procedures of constructionsupervision.

4.02 The lists of roads proposed for construction, detailed engineer-ing and feasibility studies are given in Tables 13, 14 and 15, respective-ly. About 50% of the roads included for construction are located in thenortheast. On the other hand, the program of detailed engineering and fea-sibility studies gives increased emphasis to the development of Brazil'swestern regions. This includes the states of Mato Grosso and Goias witha total area of 1.8 million km2 most of which is still sparsely populated,but has been identified by a recent Bank agricultural mission as of highpotential, especially for rice production and cattle raising. The mainbarrier to development in the western region is the lack of transportationto distant markets, and the proposed project includes studies for importanttrunk roads in this area.

B. Highways to be Constructed and/or Paved

4.03 The essential characteristics of the highways included in theproject for construction are given in Table 13. More detailed descriptionsof the roads are given in Chapter 5 -- Economic Evaluation -- and Annex E.

C. Consulting Services for Design and Construction Supervision

4.04 Detailed engineering studies are complete for all roads proposedfor construction. The surveys, soil studies, geometric and structural de-signs, and drafting of specifications were carried out in accordance withmodern engineering principles and the quality of the work is satisfactory.

4.05 With the exception of highway BR324 (para. 4.14), all detailedengineering studies have been carried out by Brazilian consultants. Theseconsultants are listed in Annex F.

4.06 To establish continuity of responsibility, DNER has agreed thatthe consultants responsible for the design of highways proposed for con-struction would also be employed for supervision of the construction (seealso para. 4.09). Signing of the consultants' contracts will be a condi-tion for loan effectiveness.

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Additional Consulting Services

4.07 With a view to preparing further highway projects suitable forBank financing, detailed engineering studies for about 2,290 km and feasi-bility studies for an additional 3,814 km of highways have been includedin the project. Estimated construction costs would be about US$229 mil-lion and US$320 million, respectively (Tables 14 and 15)*. These studiesshould result in construction projects being ready for financing in 1971and subsequent years.

4.08 The planning department of DNER is understaffed and needs to bestrengthened (para. 3.10). DNER is planning to engage a team of at leastfive Brazilian transport economists. In addition, under the present pro-ject, the services of four foreign experts will be secured, namely, twotransportation economists, one programming and budgeting expert and onetraffic engineer. This team will assist in (a) establishing a comprehen-sive data collection system, (b) updating and continuing the TransportSurvey Master Plans, (c) screening federal and state investment projects,(d) coordinating investment programming and annual budgeting and (e) train-ing DNER staff. Foreign experts will be recruited individually after Bankapproval for a minimum of two years.

4.09 Project works will be supervised by the consultants responsiblefor the design (para. 4.06). To establish appropriate supervising proce-dures and to ensure coordination between the various consultant teams,DNER will form a group of experienced engineers within its constructiondepartment. To assist this group, a team of five experienced engineerswill be provided by a foreign consulting firm for the period required tocarry out construction of the project roads.

D. Cost Estimates and Financing

4.10 The total cost of the project is estimated at US$255.1 millionequivalent, including allowances for quantity contingencies. A summary ofthe project cost and Bank participation follows:

* See footnotes to Table 15.

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US$ (Millions)NCr (Millions) Equivalent Bank Participation*

Local Foreign Total Local Foreign Total US$ Millions Equiv.

1. Construction and paving of 872 kmof highways 311.4 98.4 409.8 76.0 24.0 100.0 40.0 (40%)

2. Improvement and paving of 1,267 kmof highways 290.2 91.7 381.9 70.8 22.4 93.2 37.3 (40%)

Sub-Total 601.6 190.1 791.7 146.8 46.4 193.2 77.3

Quantity Contingencies (about 10%) 60.0 19.0 79.0 14.4 4.6 19.0 7.6

661.6 209.1 870.7 161.2 51.0 212.2 84.9

3. Consulting Services for:

(a) Design for items 1 and 2 30.0 1.2 31.2 7.3 0.3 7.6 0.3 (FE)***(b) Supervision for items 1 and 2 60.2 2.5 62.7 14.7 0.6 15.3 6.2 (40%/FE)***

Contingencies (10%) (for item 3(b)) 5.8 0.4 6.2 1.4 0.1 1.5 .6

Sub-Total Item 3 96.0 4.1 100.1 23.4 1.0 24.4 7.1

4. Additional Consulting and ExpertServices for:

(a) Detailed Engineering of 2,290 kmof Highways 37.7 - 37.7 9.2 - 9.2 3.7 (40%)

(b) Feasibility Studies of 3,814 kmof Highways 32.4 - 32.4 7.9 - 7.9 3.2 (40%)

(c) Strengthening DNER's Planning(72 man-months) .4 1.6 2.0 0.1 .4 .5 .4 (FE)**

(d) Improving DNER's constructionsupervision (120 man-months) .8 2.9 3.7 0.2 .7 .9 .7 (FE)**

Sub-Total Item 4 71.3 4.5 75.8 17.4 1.1 18.5 8.0

* See also para. 4.18

** FE: ForeiRn Exchange Component

*** For Item 3(a) the foreign exchange costs relate only to the desirn of highway BR324 for which foreignconsultants were employed.

For Item 3(b) Bank participation would cover:

- 40% of costs of services rendered by local consultants:

- foreign exchange component of the costs of services rendered by foreign consultants.

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4.11 The estimates of construction costs are based on July 1969estimates converted at the then official exchange rate (Table 13). Unitprices are based on estimates of the consulting engineers and checkedagainst unit prices from contracts recently awarded for similar works.Quantities were taken from detailed engineering studies.

4.12 A 10% contingency allowance has been added to the constructioncosts for quantity increases. Loan disbursements are to be based on thedollar value of the works at bid date (para. 4.26). The short periodallowed between preparation of the estimates and bid date, and the Gov-ernment's flexible exchange rate policy eliminate the risk that unitprices expressed in U.S. dollar at bid date would be artifically inflated.Price contingencies would therefore be justified only to cover "real"(i.e. related to US$) increases in prices during construction. However,under the proposed disbursement procedure, covering the increases in in-ternational prices would require the definition of a sliding Bank partici-pation formula. This is regarded as unduly complicated and is not recom-mended. Consequently, no price contingencies have been allowed for inthe loan and, as a result, Bank participation may be slightly less thanthe apparent 40% (para. 4.18).

4.13 The foreign exchange component for construction has been esti-mated for each highway on the basis of contract awards to (a) local firmsor (b) foreign firms. The range is from 15% of the total constructioncosts if local contractors, using primarily local equipment, were employedto 45% if all work was carried out by foreign contractors. Under the FirstHighway Project several foreign contractors showed interest and one con-tract was awarded to a joint venture with a foreign partner. Consideringthe improvement of bidding and contracting procedures, the size of theprogram and the introduction of packaged lots (para. 4.23), it can reason-ably be expected that an increased number of foreign contractors will par-ticipate. Assuming therefore that one fourth of the construction would goto foreign contractors and three fourths to local contractors, the foreignexchange component would be about 24%.

4.14 The cost of detailed engineering for project roads has alreadybeen borne by DNER. The foreign exchange costs are for the employment offoreign consultants (X. Dorsch - Germany) for the design of highway BR 324.Since this project was prepared under the close supervision of the Bank,hIe loan will provide retroactive financing for the foreign exchange com-

ponent of the costs incurred since July 1, 1969. This is estimated atabout US$300,000.

4.15 The cost of construction supervision has been estimated on thebasis of the arrangements described in paragraph 4.06. The foreign ex-change costs relate to the employment of foreign consultants for the super-vision of construction of highway BR 324.

4.16 The costs of the additional consulting services have been es-timated on the basis of:

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(a) Contracts recently awarded in Brazil for the preparationof feasibility and detailed engineering studies, and

(b) Costs experienced in recent Bank contracts for expertsof international repute.

4.17 The total foreign exchange component of the project includingconstruction and consulting and expert services is about 21%.

4.18 Bank participation in the project will cover the foreignexchange component of services rendered by foreign consultants and 40%of the costs of consulting services rendered by local consultants, andof construction works. The employment of local consultants will furtherstrengthen engineering consulting capacity in Brazil and financing ofthe related local currency expenditures is therefore considered justified.Total foreign exchange costs of the project will be US$53.1 million, whichis about 53% of the amount of the loan; the balance of US$46.9 millionwill finance local currency expenditures. In summary, Bank participationwill be as follows:

(i) Forty percent of construction costs;

(ii) Foreign exchange component (35%) of the costs ofconsulting services for detailed engineering of (i)above (para. 4.14);

(iii) Forty percent of the costs of construction super-vision when services are rendered exclusively byBrazilian consultants and foreign exchange component(35%) in the case of BR 324 for which foreign con-sultants will be employed (para. 4.15);

(iv) Forty percent of costs of consulting services forpreparation of feasibility and detailed engineeringstudies; and

(v) Foreign exchange component (70%) of the costs ofconsultants to assist DNER in planning, and in con-struction supervision.

4.19 Construction is expected to commence during the second quarterof 1970 and to be completed towards the end of 1973. Feasibility anddetailed engineering studies will be started in 1970. Individual con-sultants for assistance in planning and in construction supervision areexpected to be retained for 2 and 3-vear periods respectively. On thishasis, the annual breakdown between estimated Government exoendituresand those covered bv the Bank will be as follows:

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BankTotal Expenditures Gov. Expenditures Participation

(US$ million) (US$ million) (US$ million)

1969 6.7 6.7 -

1970 40.0 23.8 16.2

1971 95.0 56.9 38.1

1972 79.4 47.6 31.8

1973 34.0 20.1 13.9

Total 255.1 155.1 100.0

E. Exeeution of the Project

4.20 Execution of the project will be the responsibility of the DNERfor national highways and of the corresponding DER for state highways. TheDNER will delegate authority to the DERs for three highways which belong tothe national as well as to a state highway network. Table 13 shows thehighway department responsible for each highway.

4.21 Prolect agreements between the Bank and states responsible forconstruction of state highways or delegated national highways will besigned not later than the loan agreement. In addition, subsidiary agree-ments will be concluded between the federal government and DERs represent-ing those states where a) construction of state or delegated national high-ways is included in the project, and b) feasibility studies or detailedengineering are to be conducted on state or delegated national highways.Satisfactory conclusion of these subsidiary agreements will be a conditionfor loan effectiveness. i

4.22 Contracts for the project works will be let on the basis of in-ternational competitive bidding in accordance with the Bank's establishedbidding procedures. The consultants have assisted the Government in thepreparation of prequalification, bidding and contracting documents whichare in agreement with the Bank's guidelines. They will also assist theGovernment in the analysis of bids and be responsible for the supervisionof construction. The Government is proceeding with the prequalificationof interested bidders.

4.23 The project includes the construction and paving of a 900 kmcontinuous stretch of BR 101 in the states of Bahia and Espirito Santo.To take advantage of economies of scale through the use of larger con-tractors, DNER has agreed to combine construction lots in packages andgive bidders a choice to bid on packages or single lots. The values ofthese packages range from about US$8 to 14 million.

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4.24 In connection with the First Highway Project, legislation hasbeen made effective regarding (a) the duty free import of constructionequipment for the contractual period of construction, (b) price escala-tion formula and (c) bidding and contracting documents. No further actionin these respects is required.

4.25 The Government is proceeding with the acquisition of right ofway and construction contracts will not be awarded prior to legal expro-priation. This was confirmed during loan negotiations.

F. Disbursement

4.26 The disbursement procedures adopted by the Bank for constructionand paving works under the First Highway Project will apply to this pro-ject. Disbursements will be made on the basis of unit costs, expressed indollars at the official exchange rate applicable at the date of bid open-ing. Contractors will be paid in Cruzeiros and the Government will fromtime to time request the Bank to reimburse the agreed percentage of ex-penditures, arrived at by the conversion of physical units of work intodollars at the appropriate dollar unit prices.

4.27 Brazilian consultants will be paid in Cruzeiros by DNER, and theGovernment will from time to time request the Bank to reimburse the agreedpercentage of expenditures actually incurred.

4.28 Foreign consultants and experts will be paid by DNER in Cruzeirosin accordance with contractual schedules. The Government will from time totime request the Bank to reimburse the foreign exchange component expressedas a percentage of expenditures actually incurred as shown in paragraph 4.18.

4.29 The loan will be to the Federal Government. DNER will administera revolving fund for payments to contractors and consultants. The FederalGovernment will finance the cost of construction and consulting serviceson national and state highways included in the project and the states willreimburse such amounts as are expended on the state highways. The revolv-ing fund will be replenished with the Bank's reimbursement for paymeentsmade and with the Federal and state Governments' contributions. Duringloan negotiations, assurances were obtained that DNER will make depositsin the revolving fund as required so that at the beginning of each calen-dar month the amount of the revolving fund will be at a level sufficientto cover one month of forward project cost, in accordance with work sched-ules. A revolving fund with an initial deposit by DNER of US$ 2.5 millionequivalent in a blocked account at a suitable Brazilian bank was agreedwith the Brazilian authorities; its establishment will be a condition forloan effectiveness.

4.30 Legislation regarding payment of foreign experts and repatriationof profits and overheads of contractors and consulting firms has changedrepeatedly in recent years. To remove ambiguities the current legislationhas been reviewed and the Government has submitted a legal opinion whichconfirms that:

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(a) Levies on contractors' profits -- including retention forremittances abroad -- would correspond to about 50% ofprofits. Retention on profit remittances would have theeffect of slightly favoring local bidders by about 2-1/2%of total bid price; and

(b) A flat 25% retention is applied to remittances abroad byconsulting firms in lieu of income tax.

The 50% tax rate on contractors' profits is in line with corporate taxrates in most developed countries. Neither this rate of taxation nor theslight favor that the rate gives to local bidders should deter participa-tion of foreign bidders.

4.31 Any surplus of funds remaining in the loan account on completionof the project should be cancelled.

5. ECONOMIC EVALUATION

A. Introduction

5.01 With the opening of vast areas in the interior and the begin-ning of their economic development, demand has greatly increased for high-way transport to connect them to port and large urban areas on the coast.At the same time, rising trade among cities located in the more developedeastern states has meant large increases in highway transport volumes inthese areas, and resulted in pressure to improve and extend the presentroad system.

5.02 To permit rational choice among investment alternatives, High-way Master Plans were prepared under the Transport Survey (see Chapter 2)on the following bases:

(a) Study of present traffic volumes flowing between thecountry's major zones conducted on the basis of ananalysis of present production and consumption patterns,traffic counts and origin-destination surveys;

(b) Forecasts of traffic growth to 1976 based on projectedproduction and consumption patterns and extrapolation ofpast trends for passenger traffic;

(c) Allocation of the various classes of traffic to thatmode offering lowest total transport cost, taking intoconsideration expected operational improvements in railwaytransport and coastal shipping;

(d) Calculation of estimated costs of highway improvements andnew construction needed to accommodate projected traffic;

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(e) Evaluation of economic benefits to be derived from proposedinvestments through lower vehicle operating costs and high-way maintenance costs; and

(f) Calculation of benefit/cost ratios, determination of optimumyears of opening and listing of investment priorities.

5.03 The roads included in the proposed project for constructionwere selected among higher priority roads in the Master Plans. The con-sultants responsible for detailed engineering for these roads studiedalternative alignments wherever warranted, and final alignment selectionswere based on economic criteria. Preparatory studies on the roads pro-posed for detailed engineering under the project were selected from theMaster Plan and feasibility studies carried out by consultants employedby DNER (Table 14), and those for feasibility studies directly from theMaster Plans priority listing.

B. The ProJect Roads

5.04 Regional descriptions and the characteristics of the most im-portant project roads follow:

In the Northeast Region*

25.05 The Northeast region extends over 1.5 million km or a littleover 18% of the national territory. The region's population is estimatedat 26.1 million or over 29X of Brazil's total. This is one of the poorestregions in Brazil. Its population is engaged mainly in agricultural ac-tivities under generally difficult conditions, including poor qualitysoils and scarcity of water. In recognition of these difficulties, aregional development agency (Superintendencia do desenvolvimento doNordeste - SUDENE) was created in 1959 to promote growth in the produc-tive sectors of the regional economy. SUDENE administers both federalbudgetary appropriations for infrastructure investments and fiscal in-centives for industrial development. The main agricultural products inthe region are sugar cane (23.2 million tons in 1966), manioc (7.4 mil-lion tons), timber (41.0 million m3). Cattle and pig raising is alsoimportant with herds numbering respectively 17.5 and 15 million head.The State of Bahia is the country's main producer of cacao, 96% of thenational total, and contributes an important share of its production oftobacco. In recent years, largely as a result of SUDENE's activities,but also through efforts by other Government agencies (e.g. BancoNacional do Nordeste - BNB), industrial production has expanded rapidly

* The Northeast Region includes the following states: Maranhao, Piaui,Ceara, Rio Grande do Norte, Paraiba, Pernambuco, Sergipe, Alagoas andBahia.

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in the region, particularly in the state of Bahia. An important indus-trial park is being constructed in Aratu -- north of Salvador, the capi-tal of Bahia -- which will include processing industries and steel plants.Present industrial production in the region concentrates on metallurgicaland cheiwical products, textiles and processed foodstuffs.

5.06 Under the proposed project about 1,065/Km of highways locatedin the Northeast revion are proposed for construction. In addition de-tailed engineering would be prepared for 612 km and 960 km would bestudied for feasibility. The two most important projects proposed forconstruction are BR 101 and BR 324. Highway BR 101 is a main north southtrunk road extending over 4,000 km along the coast and linking the coun-try's main urban centers. The section included in the project totals1,012 km of which close to 75% is located in the Northeast region. Thebalance is situated in the Center-East region. Project works on thisroad would complete the paved connection between Salvador and Rio deJaneiro. Highway BR 324 is the only entrance to Salvador and carriesheavy traf4fic, particularly close to the city (1968 ADT 6,300 with about50% trucks). Design calls here for a four-lane divided highway withlimited access. A preliminary study is underway which will delimit theSalvador Metropolitan Area on the basis of economic and social factors, andwill recommend an administrative structure and a scope of work for futureurban planning studies. The preliminary study is due for completion inlate 1969 and the comprehensive planning studies will extend over severalyears. Heavy congestion and high rate of accidents characterize the pres-ent two-lane highway (BR 324). Construction, therefore, cannot await com-pletion of Metropolitan Plans.

5.07 The proposed project also provides for detailed engineeringstudies on the 306 Km continuous highway extending north of the port ofMaceio in the direction of Campinha Grande and Natal (BR 104). This high-way serves the center of the Northeast region and will become one of itsmajor outlets for the flow of goods to industrial zones in the south.Other highways included in the project are listed in Tables 13-15 and moredetailed descriptions are given in Annex L.

In the Center-East Region*

5.08 This region has an area of 0.7 million Km 2, only about 1.2% ofthe country's total, but it contains a population of 21.5 million or 24%of the national total. The resource endowment is generally favorableand main activities are in agriculture, industry and mining. The prin-cipal crops include sugar cane (15.7 million tons in 1966), rice (0.9million tons), corn (2.0 million tons), beans (0.3 million tons), coffee

* UJnder Brazilian administrative definition this region includes thestates of Esnirito Santo, Rio de Janeiro and Minas Gerais. For thepurposes of this description the state of Guanabara, which is locatedin the center of this region, has also been included.

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(0.6 million tons), and citrus fruits (2.5 million tons). Timber exploitation(28.7 million m3), cattle and pig raising (24% of the country's totalherd) supplement agriculture activities. In the industrial sector theregion's most important products are steel and chemicals, electrical ap-pliances, processed foodstuffs and textiles. Mining is centered on BeloHorizonte, the capital of Minas Gerais, where 23 million tons of ironore are extracted annually and about half of the country's steel is pro-duced.

5.09 The list of project roads in this region is shown in Tables 13-15 and more detailed descriptions are included in the Annex E. Proposedproject roads are all of regional interest. The most important amongthese roads is the Rio de Janeiro - Juiz de Fora section (BR 135) whichis proposed for feasibility study, and is one of the most travelled routesin the region (ADT of up to 25,000 close to Rio de Janeiro). The combina-tion of poor alignment and high traffic volumes results in heavy trafficcongestion and a new alignment to appropriate standards is urgently re-quired.

In the Center-West Region*2

5.10 The total area of this region is about 1.9 million km , 22% ofthe national territory. Population is estimated at about 4 million, alittle over 4.5% of the total for Brazil, and average density is only 2persons per Km2. This is one of Brazil's most recently settled regionsand a large number of new towns are developing rapidly along the routesrecently opened in virgin territory. The climatic and soil conditionsare favorable for high yielding agricultural activities and cattle rais-ing. The region's main products are rice (1.3 million tons in 1966),sugar cane (1.8 million tons) and manioc (1.8 million tons). Timber pro-duction amounted to 9.2 million m3 in 1966. Cattle total 20 million head.Most of the region's agricultural production is exported to the industrialstates, particularly Sao Paulo.

5.11 Under the proposed project detailed engineering studies wouldbe conducted on the 254 km most southern section of highway BR 153 -- theBelem-Brasilia highway. Spectacular development has been triggered bythe construction of this highway to gravel standards and the resultingheavy traffic on the southern section makes improvement and paving neces-sary. A 1,400 km program of feasibility studies is envisaged which wouldcover the region's main trunk roads. Other project roads in this regionare described in Tables 13-15 and Annex E.

In the Far-South Region**

5.12 The Far-South region has a total area of 0.6 million km (about7% of the national territory) and a population of roughly 16.5 million

* This region includes the States of Mato Grosso and Goias.

** This region includes the States of Parana, Santa Catarina and RioGrande do Sul.

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2(18.5% of the national total), averaging 29 persons per km In the south-ern region, agriculture and cattle raising are important economic activi-ties as well as lumbering and wood processing. In the State of Paranatimber production (15 million m3 in 1966) accounts for about 12% of Brazil'stotal, and wood processing is the main industry in the State. Agriculturalproduction in 1966 included sugar cane (3.1 million tons), coffee (1.2 mil-lion tons), rice (0.5 million tons), corn (2.0 million tons) and manioc (1.6million tons). In addition, 6% of the country's cattle is raised in Parana.In the State of Santa Catarina, agriculture accounts for half of the state'sincome, with the most important products beinRg pine and tobacco, which re-present 40% and 32% of national production respectively. Other importantproducts are citrus fruits (0.5 million in 1966), and manioc (2.4 milliontons). In the State of Rio Grande do Sul, agriculture contributes about 40%of the state income and employs more than 50% of the active population. Themost important products in 1966 were tobacco (37% of national production),corn (2.3 million tons) used primarily for animal consumption, as well aswheat (0.5 million tons), rice (1.2 million tons), beans (0.2 million tons),oranges (O08 million), manioc (3.2 million tons), grapes for wine (66% ofnational production) and timber (14 million m3). The State also raises 12%of the country's cattle. A part of the agricultural production of the South-ern Region is consumed in the state capitals of Porto Alegre, Florinapolisand Curitiba, and the surplus is exported north to Sao Paulo and Rio deJaneiro.

5.13 Project roads in the southern states are mostly of regional im-portance and carrying heavy traffic - ADT up to 1,300 vehicles. They aredescribed in Tables 13-15 and Annex E.

C. Benefits from the Project

5.14 Most of the quantifiable benefits attributable to the projectroads are in the form of road user savings derived from a lowering ofvehicle operating costs. These savings stem from the difference in op-erating costs on present gravel or earth roads, and on the projected pavedroads, as well as from distance reduction for both normal and divertedtraffic. Estimates of these benefits were made during the preparation ofHighway Master Plans, and were updated by DNER to reflect present condi-tions in Brazil (Table 17). They were based on theoretical computationschecked against trucking companies' records, and test runs over differenttypes of roads for typical Brazilian vehicles. In the case of Route BR-324,which has urban characteristics, benefits were derived primarily from re-duction in congestion resulting in lower vehicle operating costs, as wellas time savings reflected in the wages of drivers of commercial vehiclesand travellers on business trips.

5.15 Additional benefits would be derived from the difference inmaintenance costs of well constructed paved roads, and existing gravelor dirt roads. While fixed maintenance costs of paved roads are higherthan corresponding costs for gravel or dirt roads, variable costs increasefaster with rising volumes of traffic for gravel and dirt roads than forpaved roads.

- 24 -

5.16 In addition to the quantifiable benefits of the project, a num-ber of benefits that are difficult to quantify can also be attributed tothe proposed road improvements. The paving of the project roads will leadto reduced travel time and increased comfort, which in turn will lead tofaster turnover of capital, to lowering of inventory costs and to lessspoilage of fresh fruits and vegetables and less loss of poultry, pigs andcattle during transport. In addition, the improved roads will facilitatemigration from the densely populated areas along the coast, to the newlyopened territories of the interior, which have large development potentialbut lack adequate human resources.

5.17 For the project roads proposed for construction and/or pavingthe estimated net benefits, discounted over a 20 year economic life ofthe roads, give internal rates of return ranging from 17 to 47% (Table19). The sensitivity of internal rates of return to variations in con-struction costs, vehicle operating costs and maintenance costs was tested(Table 19). Under the most pessimistic assumptions, rates of return wouldrange from 12 to 38%. The roads proposed for detailed engineering, andthose for feasibility study within the project, have been selected fromthe Master Plans which have been closely examined by the Bank. At thisstage of evidence as to costs and benefits, each road can be expectedto have a rate of return in excess of 15%. The exact returns, which inmany cases can be expected to greatly exceed this figure, will be deter-mined on the basis of the additional pre-investment work proposed underthe project. The roads are of priority and can be expected to lead toacceptable projects for future Bank financing consideration. Their in-clusion in this project is, therefore, fully warranted.

6. RECOMMENDATIONS

6.01 Prior to loan negotiations the Government submitted to the Banka Plan of Action (PA-2) outlining the measures required to bring aboutfurther improvements in the transport sector. This is a suitable basisfor proceeding with the proposed loan.

6.02 During loan negotiations, agreement was reached with the Gov-ernment on:

A - The following main points to be included in the Loan Agree-ment:

(a) The implementation of DNER's reorganization (para.3.06);

(b) The delegation of maintenance functions (para. 3.09);

(c) The satisfactory maintenance of national roads (para.3.21):

- 25 -

(d) The employment of consultants for supervising the con-struction of project roads (para. 4.06);

(e) The employment of Brazilian and foreign transportexperts to reinforce DNER's planning department (para.4.08); and

(f) The establishment of a group of Brazilian and foreignconstruction engineers to improve DNER's constructionsupervision (para. 4.09);

B - The following main points to be included in Project Agreements:

(a) The reorganization of DERs (para. 3.08);

(b) The delegation of maintenance functions (para. 3.09);and

(c) The maintenance of state roads (para. 3.21).

6.03 Conditions for loan effectiveness will be:

(a) The signing of consultants' contracts for the supervisionof Project works (para. 4.06);

(b) The establishment of a revolving fund in a blocked bankaccount (para. 4.29); and

(c) The conclusion of subsidiary agreements between theFederal Government and the DERs representing those states whereconstruction, feasibility studies, or detailed engineer-ing studies are to be carried out under the project onstate and/or delegated national roads (para 4.21).

6.04 The project provides a suitable basis for a Bank Loan of US$100million equivalent. On the basis of the average economic life of road con-struction works and length of construction period, the appropriate termwould be 25 years, including a four-year period of grace.

March 17, 1970

TABLE 1

BRAZIL

SECOND HIGHMAY CONSTRUCTION PROJECT

Freight Transport by Mode of Transport, 1961-1968(billions of net ton-km)

Railways Coastal 2 gsAirYear Total Total Federal State /VRD' Shipping-, Highways Transport-

1961 74L.4 13.6 7.5 2.9 3.2 13.9 46.8 0.1

1062 82.7 14.4 7.7 2.8 3.9 16.2 52.0 0.1

1963 87.4 15.0 7.7 3.1 4.2 14.2 58.0 0.2

196h 95.0 16.0 8.2 2.8 5.0 14.3 6h.5 0.2

1965 108.0 18.2 8.8 3.2 6.2 14.0 71.6 0.2

1966 115.4 18.7 9.2 2.8 6.7 16.9 79.6 0.2

1967 132.8 19.4 9.0 2.7 7.7 18.9 93.9 0.2

1968 1h8.1 21.4 10.2 3.3 7.9 19.0 107.5 0.2

Percentage Shares

Year, Totl RailwasI/ Coastal iHirhays ira

1961 100 18.3 18.7 62.9 0.1

1962 100 17.4 19.6 62.9 0.1

1963 100 17.2 16.2 66.8 0.2

196 1o00 16.8 15.1 67.9 0.2

1965 100 17.5 13.5 68.8 0.2

1966 100 16.5 13.5 69.8 0.2

1967 100 18.6 1h.3 70.9 0.2

1196h 100 14.4 12.8 72.6 0.2

1/ ";.inas a Vitoria" railway, subsidiary of CVRD mining company.2/ Excluding river traffic for which no statistics are available.3/ Includes international services. Donestic figures not available

separately.

Source: GEIPOT.DECE TEER 1969

BRAZIL

SIZOND HIGHWAY CDNSTRUCTION PROJECT

Passenger-Kilometers, Percentage Shares, and Average AnnualGrowth Rates of Total and Selected Items, by Mode of Transport

195o-1961 - 1961-1965 - 1965-1968

Average Anmnal Growth RatePaasenRer-Kilometers (billions) Percent Shares (Dercit)

Mode of Transport & Item 9 1 196 1965 1967 19 1961 91968 1951 68

HighwaysMedium and long di stance

bus traffic 9.8 25.5 n.a. n.a. n.a. 45.1 52.4 60.8 70.6 26.7 31.6 36.7 39.3 40.2 42.1 9.1 15.3 16.1Automobile medium and

long distance traffic 3.9 13.0 n.a. n.a. n.a. 21.2 23.4 25.8 28.4 10.6 16.1 17.3 17.6 17.1 17.0 11.6 13.0 10.1

Subtotal 13.7 38.5 n.a. n.a. n.a. 66.3 75.8 86.6 99.0 37.3 47.7 54.0 56.9 57.3 59.1 9.8 14.6 14.3

Local bus traffic 4.2 10.9 n.a. n.a. n.a. 19.5 22.4 25.7 29.5 11.4 13.5 15.9 16.8 17.0 17.6 9.1 1,5.6 14.9Automobile local traffic 3.2 10.1 n.a. n.a. n.a. 16.5 18.2 20.0 22.0 8.7 12.5 13.4 13.7 13.2 13.1 11.0 13.1 10.0

Subtotal 7.4 21.0 n.a. n.a. n.a. 36.0 40.6 45.7 51.5 20.1 26.0 29.3 30.5 30.2 30.7 9.9 14.4 12.8

Total 21.1 59.5 n.a. n.a. n.a. 102.3 116.4 132.3 150.5 57.5 73.7 83.3 87.4 87.5 89.8 9.9 14.5 13.9

RailwaysInterior traffic 5.7 7.4 7.9 8.2 8.1 8.2 6.4 7.7 5.8 15.5 9.2 6.7 4.8 5.1 3.5 2.4 2.6 -10.9Commiter traffic 7.9 10.6 11.4 10.9 10.3 9.4 7.2 7.7 7.6 21.5 13.2 7.6 5.4 5.1 4.5 2.7 -3.0 - 6.9

Total 13.6 18.0 19.3 19.1 18.4 17.6 13.6 15.4 13.4 37.0 22.4 14.3 10.2 10.2 8.0 2.6 -0.6 - 8.7

Coastal Shipping 0.5 0.3 0.3 0.3 0.3 0.4 0.3 0.3 n.a. 1.4 0.4 0.3 0.2 0.2 n.a. -4.5 7.5 n.a.

Airwaysa) 1.5 2.8 3.1 3.0 2.6 2.6 3.0 3.2 3.7 4.1 3.5 2.1 2.2 2.1 2.2 5.8 -1.8 12.5

Total 36.7 80.6 - - - 122.9 133.3 151.2 167.6 100.0 100.0 100.0 100.0 100.0 100.0 7.4 11.1 11.0

n.a. = not availablea) Includes intemational travel since figires ior domestic travel are not available seprately.

Source: Brazil Transport Survey, Draft Volume II.OEIPOT.

DXEMBER 1969

Table 3

BRAZIL

SECOND HIGHMAY CONISTRUCTION PROJECTS

Federal Investment in Transport by Modes(NCr July 1969, ions)

1965 1966 1967 1968 1969 /1

RAILWAYS

Equipment 361 258 203 127 259New Lines 112 181 113 98 35

Sub total 473 439 316 225 294

HIGIaYS

Construction/paving 565 676 871 1014 998

MARITIME

Ships 122 236 21h 232 614Ports 241 87 95 124 150

Sub total 363 323 309 356 764

AIRPORTS

Construction/Equipment 60 65 79 81 89

TOTAL 1461 1503 1575 1676 2145

,/1 Estimated

Source! GEIPOT and IBRD-WH 195

DECE,BER 1969

TAuL

SECOND HIGHWAI CONSPRUCTION PROJECT

Cluaification of Hiahwavs

Lwnrttha Accordioh to TVDe of Jurisdiction. December 1968

Total National Highways State Hihways Municipal HighwaysEm KM _ KM

STATE OR TERLRITORY Total Ur4paved Paved Total Unpaved Paved/ Total Unpaved Pavedl"

tondonia 1,114 807 807 00 61 61 00 216 246 00

Acre 397 248 248 00 44 44 00 105 105 00

Armazonas 1,455 45 27 18 539 399 140 871 850 21

Acrairm 318 170 178 O0 00 00 00 14,0 10 00

para 17,974 642 405 237 7,652 6,Y11 738 9,680 9,583 97

Anrapa 952 469 469 00 0 0 0 583 175 8

FKarannao 23,232 1,506 1,285 221 889 816 43 20,837 20,813 24

Pia;.i 22,069 1,418 1,248 170 1,695 1,6d6 9 18,956 18,956 0

00 1247,201 1,818 1,057 761 3,747 2,566 861 41,639 41,551 88

Ric Grands Sorer 9,494 862 546 316 2,455 2,329 126 6,177 6,177 0

Paraiba 23,967 946 583 363 3,021 2,980 41 20,000 20,000 o

h<r,-arnboco 17,292 2,059 1,405 654 2,233 1,846 387 13,000 13,000 0

Alagoas 11,295 622 376 246 2,273 2,200 73 8,400 8,100 0

Fernando do Noronna l,0 0 0 0 40 40 0 0 0

Sergipe 4,852 322 123 199 1,281 1,271 10 3,249 3,219 0

ESahia 63,621 3,667 2,618 1,049 6,055 4,813 1,212 53,599 53,88L 15

Minas Gerais 132,433 5,193 1,458 4,035 16,608 14,268 2,340 110,332 110,156 176

r.spirito Santo 16,013 795 511 284 3,231 3,136 95 11,987 11,967 0

Rio de Janeir. 18,990 1,250 166 1,084 4,123 2,994 1,429 13,317 13,16C 157

Guanabaca 1,101 95 0 95 1,006 443 563 0 C C

Sac Paolo 166,615 2,533 118 2,385 14,082 5,024 9,058 150,000 147,000 3001

Parana 83,827 2,537 822 1,715 7,844 6,9;1 933 73,146 73,396 50

Santa Catarina 31,835 1,348 841 507 5,443 5,243 200 25,014 25,041 0

Rio Grande do Sul 170,927 3,066 1,738 1,328 9,602 8,889 713 58,259 158,156 103

.:ato Grosso 31,512 4,140 3,914 226 8,860 8,831 29 18,512 18,5G0 12

Gojas 34,047 3,355 2,738 617 10,692 10,438 254 20,000 20,000 0

Federal District, Brasilia 691 254 98t 16 397 397 - 0 0 0

933,238 40,475 23,809 16,666 114,173 94,899 19,274 778,577 774,828 3,751

Source: Na.ional Highwa; Department,

5/ As o: December, 1967.

DECEI i3ER 1969

BRAZIL

SeEOND HIGHWAY CONSTRUCTION PROJECT

Relations Amonir Area, Population. and Length of Highwans. 1963

Area in Population Surfaced Highways Total Highways Km Surfaced Kn Total 2 Km Paved Km Total'000 So.Km. in '000 in Km 1/ in Km 1/ Highwav/l.OOOmK Highway/lOOOkm Highway/l000 Inhab, Highway/l000 Inhab.

Rondonia 243 114 868 - 3.6 7.6

Acre 153 202 292 - 1.9 - 1.4

Amazonas 1,564 903 158 584 0.1 o.4 0.2 o.6

Rioraima 230 41 - 178 - o.8 - 4.3

Para 1,248 1,929 975 8,294 0.8 6.6 0.5 4.3

A-papa 140 106 - 469 - 3.4 - 4.4

Maranhao 329 3,461 264 2,395 o.8 7.3 0.08 0.7

Piaui 251 1,414 179 3,113 0.7 12.4 0.1 2.2

Ceara 148 3,838 1,642 5,565 11.1 37.6 0.4 1.4

Rio Grande DD Norte 53 1,291 442 3,317 8.3 62.6 0.3 2.6

Paraiba 56 2,253 404 3,967 7.2 70.8 0.2 1.8

Pernambuco 96 4,731 1,041 4,292 10.8 44.7 0.2 0.9

Alagoas 28 1,400 319 2,895 11.4 103.4 0.2 2.1

Sergipe 22 851 209 1,603 9.5 72.9 0.2 1.9

Bahia 561 6,915 2,261 9,722 4.0 17.3 0.3 1.4

Minas Gerais 587 11,48n 6,375 22,101 10.9 37.7 0.6 1.9

Espirito Santo 46 1,491 379 4,026 8.2 87.5 0.3 2.7

Rio De Janeiro 43 4,506 2,513 5,681 58.4 132.1 0.6 1.3

Guanabara 1 4,132 658 1,101 658.0 1,101.1 0.2 0.3

Sao Paulo 248 16,624 11,443 16,615 46.1 67.0 0.7 1.0

Parana 200 7,217 2,648 10,381 13.2 51.9 0.4 1.4

Santa Catarina 96 2,706 707 6,791 7.4 70.7 0.3 2.5

Rio Grande Do Sul 282 6,561 2,041 12,678 7.2 45.o 0.3 1.9

Mats Grosso 1,232 1,364 255 13,000 0.2 10.6 0.2 9.5

Goias 642 2,718 871 14,047 1.4 21.9 0.3 5.2

Distrito Federal (Brasilia) 6 390 156 651 26.0 108.5 o.4 1.7

TOTAL 8,505 88,638 35,945 154,626 4.2 18.2 0.4 1.7

I/ Bccluding Municipal Highways

Source: DNER

DECEMBER 1969

TABLE 6

BRAZIL

SESCOND HIGHWAY OONJTR[JCIION PROJECT

Relations Among Area. PonulatiOn. and NIhber of Vehicles, 1967

Area in '000 Population Total Vehicle/ Vehicle/STAIS SQ. Km in ' Vehicles 1000 Sg.Kmr IW Inhab,

Rondoriia 243 107 n.a. -

Acre 153 196 n.a. -

Amazonas 1,564 875 n.a. -

Roraima 230 40 n.a. -

Para 1,248 1,872 13,624 10.9 7.3

Ampapa 140 100 n.a. -.

MIarannao 329 3,314 n.a.

Piau! 251 1,391 n.a. -

Ceara 148 3,764 33,010 223.0 8.8

Hio Grande do Norte 53 1,271 n.a. -

Paraiba 56 2,219 18,396 328.5 8.3

P-ernambuco 96 4,645 55,732 560.5 12.0

Alagoas 28 1,381 n.a. -

Sergipe 22 838 n.a. -

Bahia 561 6,778 64,325 114.7 9.5

Minas Gerais 587 11,230 214,925 366.1 19.1

cspirito Santo 46 1,446 24,925 541.8 17.2

Rio de Janeiro 43 4,340 102,316 2,379.4 23.6

Guanabara 1 4,007 249,860 249,860.0 62.4

Sao Paulo 208 16,081 1,028,764 4,148.2 66.o

Parawia 200 6,763 144,207 721.0 21.4

Santa Catarina 96 2,624 72,590 756.1 27.7

Hic Grande dc Sul 282 6,397 228,321 809.6 35.7

}'tato Grosso 1,232 1,293 27,030 21.9 20.9

Go i as 642 2,592 39,826 62.0 15.4

Distrito Federal 6 358 22,277 3,712.8 62.21,Brasilia)

Total Vehicles Where NoDetail is Available 56,460

TOTAL 8,505 85,902 2,396,588 281.8 27.9

Source: DNER

DECE21BER 1969

TABLE 7

BRAZIL

SECOND HIGHWAY CONSTRUCTION PROJECT

Vehicle Registrations, By State, 1967

State Cars Buses Trucks Total % Distribution

Ceara 26,261 760 5,989 33,010 1.4

Pernambuco 43,964 1,710 10,058 55,732 2.3

Bahia 50,191 1,667 12,467 64,325 2.7

Minas Gerais 166,073 5,005 43,847 214,925 9.0

Rio de Janeiro 72,599 4,654 25,063 102,316 4.3

Sao Paulo 849,626 13,733 165,405 1,028,764 42.9

Parana 101,657 2,054 40,496 144,207 6.o

Santa Catarina 52,345 1,162 19,083 72,590 3.0

Rio Grandedo Sul 185,311 4,278 38,732 228,321 9.5

Guanabara 213,406 12,129 24,325 249,860 10.4

Espirito Santo 17,649 724 6,552 24,925 1.0

Goias 31,387 676 7,763 39,826 1.7

Mato Grosso 19,861 587 6,582 27,030 1.1

Paraiba 14,183 425 3,788 18,396 0.8

Para 10,699 26 2,899 13,624 0.6

Federal District,Brasilia 19,598 564 2,115 22,277 0.9

Other Statesand Territcries 39,763 3,100 13,597 56,460 2.4

National Total 1,914,573 53,254 428,761 2,396,588 100.0

Source: Brazilian Institute of Geography and Statistics

DECEMBER 1969

TABLE 0

BRAZIL


Vehicle Fleet, 1967

in '000

Cars 1,761.4

Pickups 153.2

Subtotal 1,914.6

Buses:

Gasoline 22.7

Diesel 30.5

Subtotal 53.2

Trucks:

2-4 tons gasoline 94.6


5-9 tons diesel 4.3


10-14 tons diesel 75.1

15-17 tons diesel 21.4

18 tons and over diesel(tractors/semi-trailers) 6.4

Subtotal 428.8

TOTAL 2,396.6

Source: GEIPOTDECEMBER 1969

TABLE 9

ERAZIL


HIGHWAY DESIGN STANDARDS FOR NEW ROADS

Class of Highway0 I II III

Design L3peed, flat 120 100 80 60

km/h rolling 100 80 60 40mountainous 80 60 40 30

Midnimium Horizontal flat 570 380 230 130

Radius, m rolling 380 230 130 50mountainous 230 130 50 30

TMaximum Grade, % flat 3 3 3 4rolling h 4.5 5 6

mountainous 5 6 7 8

Sight Distance for flat 210 150 110 75

Stopping, m rolling 150 110 75 50mountainous 110 75 50 -

Sl-ht Distance for flat 730 650 500 350

Passing, m rolling 650 500 350 175mountainous 500 350 175 -

Pavement Width, m flat 7.50 7.20 7.00 7.00

rolling 7.50 7.20 to to

mountainous 7.50 7.20 6.50 6.oo

Shoulder 'idth, m flat 3.50 3.00 2.50 2.00rolling 3.00 to to tomountainous 2.50 2.50 2.00 1.20very -mountainous 1.00 1.00 1.00 0.80

Rlght-of-Way, m flat - 60 30 30rolling - 70 0 40

mountainous - 80 50 50

Source: DNER

DECEMBER 1969

TABLE 10

BRAZIL

SECOND HIGHWAY CONSTIUCTION PROJECT

HIG'HWMAY DESIGN STANDAXDS FOH IMPROVEMEDNT OF EXISTINIG ROADS

Class of Highway0 I II III

Design Speed, flat 100 100 80 60rolling 80 80 60 40mountainous 60 60 h0 30

Kinimum Horizontal flat 430 340 200 110iadius, Tr rolling 280 200 110 50

mountainous 160 110 50 30

Piaximum Grade, dO flat 3 3 3 hrolling 4.5 5 6mountainous 5 6.0 7 8

Sight, Distance for flat 150 150 100 75StopiLng, m rolling 100 100 75 50

mountainous 75 75 50 -

Sight Distance for flat 650 650 500 350Passing, m rolling 500 500 350 175

mountainous 350 350 175 -

Pavement Width, m flat 7.50 7.00 7.00 7.00rolling 7.50 7.00 to tomountainous 7.50 7.00 6.oo 6.oo

Shoulder Width, m flat 3.00 2.50 2.00 1.50rolling 2.50 2.00 1.50 1.20mountainous 2.00 1.50 1.20 1.00very mountainous 1.50 l.oo 1.oo o.80

Hight-of-Way, m flat - 60 30 30rolling - 70 ho homountainous - 80 50 50

Source: DNEr?.

DECEMBER 1969

TABLE 11

BRAZIL

SECOND HIGNilU CONSTRUCTION PRIOJECT

Forecasts of Annual Invest7wnt E rL ditures for High Priority Road Construction and/or Paving Works

(NCr Millions)

Region State 197W) 1971 1972 1973

NortheastMaranhao 121.1 66.3 84.2 51 .3

Piaui 34.0 Ij5.4& 51.8 113.5

Ceara 64I.7 113.2 117.0 89.1k

Rio Grande do Norte 57.1 55.9 50.5 50.1

Paraiba 72.6 75.9 79.4g 914.3

Pernambuco 287.8 110.5 101. L 93.5

Alagoas 70.1 L4. lI 50.5 5h.o

Sergipe 68.6 14.5 42.6

20.8

Bahia 599.0 1481.8 4t6 8

.1 213.7

'enter-EastYMinas Gerais 259.0 284.2 301.3 267.9

Espirito Santo 77.1 119.3 38.7 22.0

Rio de Janeiro 160.L 1 ,9.8 67.1 30.0

tenter-Soluth(l

Sao Paulo L29.5 4(7.L 50P.5 553.8

Center -West

Mato Grosso f1 .3 73.6 88.3 106.3

Goias 42.5 71.2 94.1 199.6

Far South

Parana h35.2 535.7 5147.1 4l68.4

Santa Catarina 171.2 2114 .n 232.5 195.5

Rio Grande do Sul 237.6 296.n 2Q8. 3 273.1

Sub Total 3,217.3 3,250.1 3,221.7 2,897.2

Other States (1 ) 227.3 227.5 225.5 202.8

Total 3,1s75.1 3,177.6 3,[Ui7.2 3,100.0

(1) Investme-it exnedtiture forecasts are based on the Transoort Survey recrcrendedinvest-sent programs. The states and territcries not c-vered by the Siuveyare:

Aiazcn Region - Rondonia, Acre, Amazonas, Roraina, Para, Asapa

Certer South - Guanabara .

Center West - Federal District (Brasilia)

Investm-ent expeniitures in states not covered by the survey have been taken asseven percent of the a-ounts for States studied.

SOtRCE: Transoort Survey Phase I and II

DECEMIBER, 1969

TABLE 12

BRAZIL

SECOND HICIRWAT CONSTRUCTION PROJIGT

Tentative Pinanca na fAm Pegdarl And Stat. Hi,hwayu(1970-1973)

NCr Millions

Revenues 1970 1971 1972 1 973 1970/1973

Road Fund (IUCL) 1,571 1,723 2,120 2,292 7,706

Otaer Revenues (1) 1.199 1.275 1,351 1,427 5,252

Total 2,770 2,998 3,471 3,719 12,958

Exnenditures

Invest'ents (2) 3,475 3,478 3,447 3,100 13,500

Maintenance Equipe-mnt (States Covered 132 48 4i 74 295(by Transport(Survey(Other States 9 3 3 4 19

Sub Total 3,616 3,529 3,491 3,178 13,814

'airitenanre and Administration (DNER and 736 744 763 797 3,040(States covered(by Transport(Survey

(Other States 45 47 48 50 19n

Sub Total 781 791 811 847 3,230

Total 4,397 4,320 4,302 4,025 17,044

sureius (Deficit) (1,627) (1,322) (831) (306) (4h,06)

1I.S.2 Equivalent (sillions) (397) (322) (203) (75) (997)

Average Annual deficits US$249 million (197C-1973)

(1) Proceeds of taxes earmarked for highwayuse and budget appropriations

(2 See Table 11

t(,tliT Trar-ssort Survey Phase I and II

DEC5

BE'5, 196u

TABIE 13

BRAZIL

SEDOND HIGHWAY OICSTRUGTION PROJECT

List of Roade for Constrmtien mVd/or Pa.irm

(1) (2) (3) (4) (5) (6) (7) (3)Type of Sur-

Peo- facing andSlap' t eto d lacier Soenrv Road Section Fl ytpe R oflir4 s Xountsi iTerr Clams of Road Type of Work Total Cost (2)

'ed. State ~~~~~~~~~~~~~ ~~~~~~Flat % oln 4otnous % Conit. and I-o and' NC, cilli-c jti dimlon(1) Paving Pacing

Cca,,. BR 22? BitR Piripiri-Sobral - 15 85 LST-1 - 199.7 58.9 14.L

El 3?L DNSR Salvador-Feira de Sanstan (I) 75 25 - AC-C 32.5 - 46.7 11.4

B, iv BR 321 DIER Salvador-Fair. de Santana (ItS 65 30 5 AC-I - 72.5 1ih. 3.5

B1hie RB 101 DN5R Junction BR 32h - Rio Preto - 95 5 AC-I - 183.5 56.6 13.3

w4-ia BR 1,1 DNER Rio Preto - Rio Pardo - 25 75 AC-I - 215.6 71..L 17.b

.4 Ia B2 101 DNOR Rio Pardo - Ita'eer.ju 15 15 70 AC-I 201.4 - 97.2 23.7

Sr-ia BY 1i1 DNER Ttaia,oju-Pedro C.asrio 40 31 37 AC-I 16e.h - 67.1 1f.!,

., iriteSeclc 3. 1'1 DNESR Pedro Canario-Linharee 20 50 30 AC-I - 131.6 39.3 Y.t

Ocociro BR 101 DNSR Rio Bonito-Facenda doe Quarantn 15 85 - AC-I - 116.2 57.L 1L.,

0rai B!R 135 MG 1 DSR/iE Corinto-Bocaiuca - 100 - DST-I - 167.8 36.3 1.

SiBeslocate :p, 37 lIG 5L DEPt51 Itoitaba-Cnaal Sao Sitao 10 55 35 DST-I - 114.5 19.1 L.7

locas BR 3.L DRSR Lagoa For,osa-Jurntioo BR 262 33 33 34 DST-II 110.7 - 21.3

Ocia- BR hS2 DNER Itumbiara-Rio Verde 50 50 - DST-1 181.0 - 51.2 12.5

2aeacloo 20PR L17 251,3/'6 DRR/SC Caccos NKoos-Jumntion RR 116 4°a 35 25 AC-I 88.f - h3.7 1 ,7

-c pal e.a 153 DNEF Santa Maria-Julio de CastilhRo Se 35 15 AC-C - 62.8 27.? 6.0

lie 3cc-sd'--, 2 Z3q/11 DIWRS Cruotiro do SulMucu - S 50 AC-I 4 ,7. 39.4 9.6

siT 32'RS 3 DSR/RS Porto fainron.t-Sata eCrus do Sul - Br 2n AC-I 50 1 - 40.2 9.8

Total 871.6 1,267.2 771.7 1'53.2

Graid Total 2.138.8

DST frable Ssofaco Treatment

Z A-hoalt C-creto

C Zlaas 0 (soc Tabl- 9-10)

I Ilos- I (ace T-bles 9-10)

II laco II (sec T2-Dea 9-10)

FEBRUARY, 1 970

BRAZIL

SECOND HIGIWAY CO TRUCTION PROJECT

List of Roads for Detailed 5

legering

(1) (2) (3) (W) (5) (6) (7) (8)

¶yefWork,Road Number Exi itrF ro,osed Estimated Cost of Preparatory Studiea/

State Fadera! - State Section Length Condition= St-sdrd. Estisted Constroctiss Costs Datailed Etinaaris! Consult antskm NCr Mlillioa US$ Millions NCR ISillions 1E$ 1i4lons

PB/PE BR 104 C. Grande-Caruaru 128 IE-IV 'ST-I 57.0 13.9 2.30 .56 FS-Astep

PE/AL BR 104 Caruaru-U. Palar es 118 IE-IV DST-I 62.7 15.3 2.50 .61 5

AL ER 104 AL 504 U. Palarsa - Junction BR 316 60 IE-IV DST-I 29.1 7.1 1.15 .28

PI/PE BR 316/232 Picos-Parnamirim-Salgeiro 302 I-TV DST-I 138.2 33.7 5.55 1.36 FS-Technoutal/fodio

BA ER 324 Salvador: Northern Access 4 - AC-C 16.4 L4. .65 .16 FS-Dorach

ES ES 37/36 Nova Venecia-Sao Domingos 69 IN-IT AC-II 23.4 5.7 .95 .23 NP-Norconsult

RJ RJ 133 Pedro do rio-Junction BR 116 6o IN-IV AC-II 26.2 6.4 1.05 .26 I-borco_ult

RJ RJ 82 Posse-Dox Suceaso 6o WE-II AC-II 19.3 4.7 .80 .19 W-lUorconalt

}1D J 354 Jation aR 262-Ba'ui 314 a-IIn DST-I 8.6 2.1 .35 .O FS-Pr-oeu./Lasa/Ktapa

IC 8R 354 IC 25 Foradga-Pordosa 94 0-II DST-I 18.9 4.6 .73 .18

I M171/168/28 S.Seb. Paraiso-Pocos de Caldas 188 Iz-TV DST-I'II 61.1 14.9 2.115 .60 FSD-DR/Q

M BR 267 MD 157 Pooos de Caldas-Parsagucu 101 TN-IT DST-II 26.2 6.4 1.05 .26

oo ER 153 Ceres-Poranguatu 254 0-I AC-I 75.8 18.5 3.00 .714 FS.drolsr_sm

GO aR o60 Guapo-Jatai 274 0-I/Il AC-I 80.4 19.6 3.20 .78 -Paru _ ./d.an" Nelw/*s2an

IT BR 163 Bandirantes-Campo GrarA. 71 O-I/lI AC-I 20.5 5.0 .85 .20

PR PR 12 Corn. Proeop. - Congonhas 44 IE-III AC-I 27.5 6.7 1.10 .27 1-KaEs

PR/SC/NS ER 153 Ihio da Vitoria-Erachi 2141 N AC-I 139.4 34.0 5.60 1.37 Pe-BMWoa

RS/SC BR 386/158 RS 51/SC 102 Sr azdi-Irai-Cnhapora 163 Il-TV AC-I 94.4 23.5 3.85 .94k

aS RS 19 Taquara-Spiraga 25 -II AC-I 11.9 2.9 .50 .12 W-E_ az

TOTAL 2,290 937.0 229.0 37.3 9.2

Column 2 and 3 Column 8

IM: Improved Earth FS: Feauibility Study0: Gravel

ME: Non Existdrl NP: Naster PlanDST: Double Swrface TreatmentAC: Asphalt Concrete0: Class 0 (See Tables 9 wnd 10)I: Class I (See Tables 9 and 10)

II: Class II (See Tables 9 and 10)III Class III (See Tables 9 and 10)

IV: No Class

MRCH 1970

TABLE 15

DRAIL

SECOND HIGOW! CONSmRUCTnCN PROJECT

List of Roads for Feasibility Studies 1/

-() (2) (3) (4) (5) (6) (7)

Rood fittest Length Eatimated Costmeution Estimated Cost ofCosts Feasibility Studies

3otet sotion Exsting Imposed N5r 029 Nur u2$ smaiFederal State mn Conditins Stadawrds Millions Million Million Million

.B1 FE B3111'/il? Faeich-aJuantion BR232 207 1E-II DST-II 68.9 16.8 1.35 0.33

FA BR030 Ca-tite-Brumado 103 IE-Il AC-I 41.7 10.2 i.So 0.20

BA BA630 Brua-do-Vitoria daConqoista 141 IE-IC AC-II 52.3 12.8

Ft 8E 32 Brumado-Junetion BR116 158 NE AC-C 117.2 28.6 ) 2.45 ).60 Altec tni.ss. roads

EA BA026!1554. Bted-aaosJsto BRut1 215 NE AC-II 79.7 19.4

3.A BR101 FIesr ds Sontana-Esplanada 136 G/DS5-II AC-C 55.8 13.6 1.05 o.25

F0 1114 Border RA/ES-Eooporanga-Batsr de Sao Franoisco 165 IE-IV AC/D3T-II 73.1 17.8 1.45 0.35

MfF3/GB 8R135 0.00 As o-Rio dsJansdei 202 AC-I AC-C 164.2 140.0 3.30 0.80

MG MGIl Corinto-Pirapora 148 IE-III DST-II 38.4 9.4 o.a0 0.20

MI'G' itEt14 Rondonopolis-Jatai-CanalS.o Sin-o 661 IE-IV/II DST'AC-II/I 244.7 59.6 5so5 1.35

ffT BP361/163 C.iaba-Rondonoplis-CampoGrands 758 IE/G-III/t D3I/AC-II/I 242.9 59.2 5.55 1.35

PR PR13 Masiega-sasts Isaoio 95 IE-III AC-I 5o.4 12.3

PR M - .inga-Rolandia 59 NE AC-O 94.3 23.0_ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ _

PR - - Noe Espesrano-PortoCears 77 IE-II/III AC-I/O 54.2 13.2 ) 4.75 ) 1.15 Alstati- toads

_ ~~~~~~~~~~~~~~~~~~) )Fi pFR7 Nova Esperanca-Rolandia 80 NE AC-0 126.0 30.7

-Tres Passos-Fred.ES RS54/48 Santa Roms Wrstphalen 156 NE AC-I 94.4 23.0 ) 2.5o ) o.6o Alts.tatioe toadE

-Campo Noso 90 NE AC-I 54.6 13.3

ES Rs5a Tres Passos-Canpo Novo-I Jui 128 IE-III AC-I 83.0 20.2 1.65 0.40

(JunctionRS BR158/377 RS51 J.de Castilhon-(BR285/158 317 IE-I/II AC-I 41.1 10.0

C. Alta- (Junction C(BR285/377 118 IE-I/Il AC-I 41.1 10.0 ) 1.20 ) 0.30 Altnrnaotre roado

TOTA1 3.814 1/ 1,817.8 1'/ 413.1 _/ 32.40 7.88

Coluno 2 and 3: IE: Ispeosed Earth 0: Class 0 (See Tables 9 and 1Q) S/ Seveeal feasibility stolies included in this 1ost ce*no: Gravel I: Cleas I (See Tables S and to) alternatiec lignmsnto. Total length foe -onst-ctino

NE: Non-Existing II: Class II (See Tables 8 sdlO) ill therefore be less than that for feasibility studiesIT: QDouble Surface Treatment III: Class III (See Tables 9 andl') and will be absot 3,1OC km (Estinated cost: US$320 millIon).AC: Asphalt Concrete IV: No Class

FEBRGRIR, 1970

BRAZIL

SECOND HIGH'AY CONSTRUCTION PROJECT

Average Daily Traffic on Project Roads!/

PRFSENT TRAFFIC (1968) ESTIMATED TRAFFIC (1972)

Normal Traffic Diverted TrafficTotal Total

Road Section Vehicles Cars Buses Trucks Vehicles Total Cars Buses Trucks Total Cars Buses Trucks

BR-222 Piripiri-Sobral 246 47 12 187 356 356 60 16 280

BR-324 Salvador-Feira de SantanaSection I 2/ 6,323 2,675 638 3,010 9,488 >,488 4,086 928 4,474 _ _ _ _Section II 27/ 2,926 1,501 287 1,138 4,010 4,010 1,830 323 1,857 - - - -

BR-101 Junction BR-324 Rio Preto 199 74 14 111 1,144 310 122 19 169 834 239 70 525

BR-101 Rio Preto-Rio Pardo 212 136 12 64 889 340 225 17 98 549 137 48 364

BR-101 Rio Pardo-Itamaraju 341 177 7 157 1,087 544 293 11 240 543 132 48 363

BR-101 Itamaraju-Pedro Canario 280 58 14 208 984 419 96 19 304 565 138 52 375

BR-101 Pedro Canario-Linhares 515 159 14 342 1,398 799 288 18 493 599 164 50 385

BR-101 Rio Bonito-Fazenda dos Quarenta 248 108 13 127 1,155 407 196 18 193 748 203 75 470

BR-135 Corinto-Bocaiuva 263 117 21 125 385 385 159 29 197 - - - -

BR-365 Ituiutaba-Canal Sao Simao 158 91 7 60 553 219 128 10 81 334 193 16 125

BR-354 Lagoa Formosa-Junction BR-262 160 88 11 61 325 22h4 124 16 84 101 21 3 77

BR-452 Itumbiara-Rio Verde 334 71 18 245 737 454 99 25 330 283 145 5 133

BR-470 Campos Novos-Junction BR-116 630 250 23 357 1,052 1,052 416 54 582 - - - -

BR-158 Santa Maria-Julio de Castilhos 682 373 29 280 967 967 534 37 396 _,

RS-38/11 Cruzeiro do Sul-Mucum 842 375 42 425 1,189 1,189 549 61 579 - - -

RS-3 Porto Mariente-Santa do Sul 423 124 22 277 612 583 184 33 366 29 9 2 18

1/ Traffic volumes shown in this table are averages over the whole road sections.

2/ Figures for 1967

SOURCE: DLER

DECEMBER, 1969

H'

BRAZIT


Estimated Vehicle Operating Costs(NCr., June 1969, per Em, net of taxes)

SURFACED GRAVEL EARTH

FLAT ROLLING MOUNTAINOUS FLAT ROLLING MOUNTAINOUS FLAT ROLLING NOUNTADIOUS

Passenger Car A 0.025 0.023 o.025 0.025 0.025 0.025 0.025 0.025 0.028

(Volkswagen) B 0.010 0.008 0.016 0.016 0.016 0.014 0.028 0.028 0.028

C 0.011 0.010 0.010 0.014 0.013 0.013 0.020 0.018 0.018D 0.045 0.050 o.o63 o.o60 c.o60 o.o65 0.098 0.095 0.118

T 0.091 0.091 0.114 0.115 0.114 0.117 0.171 0.166 0.192

US ¢ equivalent per KM 2.28 2.28 2.60 2.88 2.85 2.93 4.28 4.15 4.80

Bus A 0.063 o.063 0.072 0.066 0.066 0.088 0.076 0.091 o.o95

(36 Passenger, Diesel) B 0.053 0.042 0.032 0.084 0.084 0.074 0.189 0.189 0.189

C 0.107 0.097 0.097 0.160 0.146 0.146 0.267 0.243 0.243

D 0.296 0.329 0.444 o.362 0.378 0.510 o.576 0.592 0.773

E 0.078 0.080 0.097 0.101 0.101 0.123 0.166 0.167 0.195

T 0.597 0.611 0.742 0.773 0.775 0.941 1.274 1.282 1.495

US 0 equivalent per KM 14.93 15.28 18.55 19.33 19.38 23.53 31.85 32.o5 37.38

Light Truck A 0.047 0.055 0.074 o.066 0.069 0.077 0.077 0.083 0.088

(2.7 Tons, Gasoline) B 0.043 0.031 0.020 o.o62 o.o62 0.054 0.140 0.1140 0.140

C 0.041 0.037 0.037 o.o61 0.056 O.056 0.102 0.093 0.093

D 0.172 0.202 0.303 0.242 0.283 0.354 0.333 0.374 0.424

E 0.OL5 0.049 o.o65 o.o65 0.071 0.051 0o098 0.104 0.112

T O.348 0.374 0.499 0.496 0.541 0.622 0.750 0.794 0.857

US ¢ equivalent per KM 8.70 9.35 12.48 12.40 13.53 15.55 18.75 19.85 21.43

Medium Truck A 0.055 0.073 0.117 0.073 0.099 0.131 0.102 0.128 0.146

(7 ton, Diesel) B 0.070 0.052 0.036 0.104 0.104 0.104 0.234 0.234 0.234

C 0.051 0.051 0.051 0.077 0.077 0.077 0.128 0.128 0.128

D O.166 0.207 0.300 0.277 0.269 0.331 0.279 0.331 0.393

E 0.051 0.057 0.076 0.072 o.082 o.o96 0.1i1 0.123 0.135

T 0.393 0.440 o.580 0.553 o.631 0.739 o.854 0.944 1.036

US 0 equivalent per KM 9.83 11.00 14.50 13.83 15.78 18.48 21.35 23.60 25.90

Heavy Truck A 0.073 0.097 0.155 0.097 0.131 0.175 0.136 0.170 0.194

(15 tons, Diesel) B 0.146 0.108 0.076 0.216 0.216 0.216 o.486 o.486 o.486

C 0.101 0.101 0.101 0.152 0.152 0.152 0.253 0.253 0.253

D 0.263 0.329 0.477 0.362 0.428 0.526 0.444 0.526 o.625

E 0.087 0.095 0.121 0.124 0.139 0.160 0.198 0.215 0.234

T 0.670 0.730 0.930 0.951 1.066 1.229 1.517 1.650 1.792


Tractor Trailer A 0.082 0.109 0.174 0.109 0.147 0.196 0.153 0.191 0.218

(20 tons, Diesel) B 0.204 0.151 0.106 0.302 0.302 0.302 0.680 o.680 o4680

C 0.124 0.124 0.124 0.186 0.186 0.186 0.310 0.310 0.310

D 0.292 0.365 o.529 0.402 0.475 o.584 0.493 o.584 0.694

E 0.105 0.112 0.140 0.150 0.167 0.190 0.245 0.265 0.285

T o.807 0.861 1.073 1.149 1.277 1.458 1.881 2.030 2.187


SOURCE: Brazil Transport Survey, Phase II. Guideline 014. A: Fuel and Lubracants

INER B: TiresC: Maintenance and RepairsD: Crew Wages, Insurance and DepreciationE: OverheadT: Total

DECEMBER 1969

TABLE 18

BRAZIL


Average Daily Traffic, (ADT)Selected National Highways, 1968

1/ADT

Highway - BR State No. Trucks %

060 Minas Gerais ,766 53.1050 Minas Gerais 1,669 48.7060 Goias 2,313 36.6Lai Paraiba 1,763 51.5101 Sergipe 3,102 38.6101 Espirito Santo 1,062 57.2101 Santa Catarina 2,010 32.0101 Rio Grande i: Sul 2,011 32.0116 Ceara 1,538 58.7116 Bahia 5,430 45.4116 lMfinas Gerais 2,262 67.3116 Santa Catarina 2,604 57.61.1I Rio Grande do Sul 12,505 25.1135 Minas Gerais 4,992 43.4135 Rio de Janeiro 19,307 30.1153 Goias 1,889 52.5222 Ceara 1,179 48.1230 Paraiba 1,268 54.8262 Minas Gerais 1,517 46.9324 Bahia 5,430 45.5381 Minas Gerais 4,457 48.6

Rio de Janeiro 16,930 36.261 Rio Grande do Sul 1,246 43.3

1/ AJT at selected counting stations.

Source: Anuario Estatistico de Transito nas Rodovias Federais, DNER, 1968,National Department of Highwzays.

DECh.BEP. 1969

TABLE 19

UOWND IORWAI WONSTRUCTION PIOJECT

Internal Rates of Return for Roads Proposed for Construction and/or Paving

Assumption 1 Assumption 2 Assumption 3

Road Number Road Section (Best Estimate) (Upper Limit) (Lower Limit)

Federal Stat

Piaun BR 222 Piripiri-Sobral 21 27 15

CoaroBah-a BR 324 Salvador - Feira De Santana

Section I 44Section II 32

BaoLR BR 101 Junction BR 324 - Rio Preto 3c .6' 24

Bahiao BR 101 Rio Preto - Rio Pardo 22 4 1'

Batlia BR 101 Rio Pardo - Itanraju 19 25 13

hnia XBR 101 Itamar-ju-Pedro Canario 25 32 18

cSpiritoSantc IR 101 Pedro Canario-Linhares 42 50+ -32

Rio d,Janeiro BR 101 Rio Bonito-Fazenda dos Quaranta 2C 26 14

Mwinaeuerals BR 135 MG 1 Corinto-Bocaiuva lo 24 12

llinacGerais BR 365 MG 54 Ituitaba-Canal Sao Simao 47 50+ 38

linasGcrais BR 354 KG 163 Lagoa Formosa-Junction BR 262 23 28 ld

Go_as BR 452 Iturbiara-Rio Verde 37 44 30

SantaCatarina BR 170 SC43/68 Campos Novos-Junction BR 116 35 42 28

Rio Grandedo Sul BR 158 Santa Maria-JulLo de Castilhos 25 31 19

Rio Grandodo Sul RS38/11 Cruzeiro do Sul-Mlucum 17 22 12

Rio Grandodo Sul RS 3 Porto Mariante-Santa Cruz do Sul 18 23 13

3/ Undor Assumption 1 the interoal rates of return were calculated using the iuts as provided by the consultants and LNER.

/ Under Assumption 2 the internal rates of return were calculated reflecting optimiatia eonditians, by loweringconstructiun costs 10%, increasing the unit benefits from vehicle operating costs on paved roads and the unit benefit frommaintenance of paved roads 10% each, and holding the other variables constant.

3/ Under Assumption 3 the internal rates of return were calculated reflecting the met pessimistic conditions, by increasingconstruction costs 10%, decreasing the unit benefits from vehicle operating costs on paved roads and the unit benefit frommaintenance of paved roads 10% each, and holding the other variables constant.

MARCR 1070

BRAZIL: SECOND HIGHWAY CONSTRUCTION PROJECTORGANIZATION CHART OF THE NATIONAL HIGHWAY DEPARTMENT (DNER)

D I R E C T O R G E N E R A L|

|TECHNICAL AND ECONOMIC ADIOS|| ADMINISTRATIVE COUNC~IL~

AUDITING COMMITTEE | OFFICE OF THE DIRECTOR

| SECURITY COMMITTEE l | SECRETARIAT | |PUBLIC RELATIONS| |REPRESENTATION 10SECRETARIATOFFICE FEDERAL DISTRICT

DEPUTY DIRECTOR|

L S~ECRETARIAT|

t _ CONTRO L } EIIEBIDDING COMMTE

LEGAL ADMINISTRATION PLANNING WORKS OPERATIONS

H PERSONNEL l _|PLANNING PROGRAMING CONSTRUCTION MAINTENANCEAND CONTRO

MATERIAL ENGINEERING A BRIDGES AND STRUCTURES HIGHWAY EQUIPME

H COORDiNATION 1 4 DATA PROCESSING AND BETTERMENT TRAFFIC

FINANCE RESEARCH BUS AND TRUCKTRANSPORT

DISTRICT OFFICES ( One in each State)

November 1969 IBRD-4654 -

BRAZIL: SECOND HIGHWAY CONSTRUCTION PROJECTORGANIZATION CHART OF GEIPOT

P E REXECUTIVE COUNCIL SECRETARIAT

DIO ADVISORS A SUPERINTS [ S

|COORDINATIO |

DEPARTMNT OF |TECHICAL TECHNICALADMINISTRATION ESERVICES DPARTMENT

_ ADMINISTF'TOR DCMNATION ECONOMIC_

EQ. IPMENT AND DOCUMENTATION ES~~~~~~~~ ORTAN INAN

SUPPLIES CENTER STuDIE_

_ PERSONNEL 2 EERHHIGHWAY _ DIVISION N STUDIES

i FINANCIAL l PUBLICATIONS l| RAILWAY

ACCOUNTING~ l~ A DRFT IN|| PORT AND INLAND SECTION INAVIGATION STUD[E

SPECIALSTUDIE

TREASURY | -I

BRAZIL: SECOND HIGHWAY CONSTRUCTION PROJECTORGANIZATION CHART OF THE STATE HIGHWAY DEPARTMENT OF MARANHAO

(DER - MA)

| H I G H W A Y C O U N C I L

EXECUTIVE COUNCIL DIE GENERAL

SECRETARIAT

pDISTRICTS ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~VC-IRCO GENIEIRIL

a q ASSISTANCE TO | Iq PURCHASING COMMITTEE

CENTRAL WAREHOUSE|

SURVEY AND CONSTRUCTION EQUIPMENT MAINTENANCE ADMINISTRATIVE

DESIGN DIVISION DIVISION DIVISION DIVISION LEGAL DIVISION DIVISION

EQUI PMEN~T APRPRAINS

i SURVEYS l i STRUCTURE SECTION | -| EOUIpMENTRECORDS CONTROL

PAVING AND CENTRAL REPAIR | EACCOUNTS RECEIV-

8 MAPPING l m LABORATORY SHOP ABLE AND PAYABLE

CONTROl OFRIGHT - OF - WAY GENERAL SERVICING RECEI PTS

TRANSPORT PERSONNEL

Noee 1TREASURERD

SERVICES |

Novemnber 1 969 RD45E

BRAZIL: SECOND HIGHWAY CONSTRUCTION PROJECTSTATE HIGHWAY DEPARTMENT

RECOMMENDED STANDARD ORGANIZATIONAL STRUCTURE

STATE GOVERNOR

__ -A----SECRETARY OF TRANSPORRT 1

L ___ AND PUBLIC WORKS K j

| HIGHWAY COUNCIL ll

AUDITING COMITEDIRECTOR GENERAL TRAFFIC COUNCIL

| SECRETARIAT DEPUTY DI RECTOR

DEIG ADIVISONSTRUTIO MAINTENANC_E DIVISION |i ADMINISTPATIVE DIVISION lDIVISION ~ ~ ~ ~ ~ ~ MANENNE IISO

Engineering Design Section Maintenance Section Finance Section

Field Teams Field Teams

Soils and Material Section Equipment and Stores Section | Personnel Section

Field Teams_ ZPurchasing Section

Construction Section Legal SectionII 1Assistance to Municipalities Sect.

Field Teams

TrafFic Section

Police District No. 1 Highway District No.1

- Police District No. 2 Highway District No.2

IBRD-4734January 1970

ANNEX A

BRAZIL

Transport Survey

I. Main Recommendations

Transport Coordination

1. The consultants made general recommendations which, if adopted,would go far to ensure the movement of traffic by that mode of transportwhich incurred the least cost to the economy. It was recommended thatinvestments be made according to economic criteria, that there be freeuser choice of mode of transport, that government policies should not un-duly favor or discriminate between modes, and that users be charged inproportion to the costs of resources consumed in the provision of theservices.

Railways

2. An extensive analysis of the Federal and State railways was madeand the main recommendations included:

(a) The merger of all railways into one system, controlledby a Board with Managing Director responsible to theMinister of Transport;

(b) A program of abandonment of uneconomic lines;

(c) Improvement in equipment, signalling and operations;

(d) Reduction of personnel;

(e) Adoption of cost-based tariffs; and

(f) "Normalization" of accounts (writing of concessionaryGovernment traffic at full commercial rate).

Ports

3. The ports of Rio de Janeiro, Santos and Recife were studied indetail with a view to providing guidelines for the improvement of admin-istration and to prepare master plans for investment. The situation inthe ports was unsatisfactory in almost every respect, the principal causebeing overcentralization. It was proposed that the National Port Organi-zation be responsible only for rational planning and coordination and thatindividual ports should be transformed into largely independent port au-thorities. For the port of Rio de Janeiro, the Survey recommended exten-sive rehabilitation and expansion of facilities, including new wheat and

ANNEX APage 2

dry bulk terminals, and new general cargo berths. In Santo, new facilities,including a container berth, were recommended to handle increasinR traffic.In Recife, replacement of almost all equipment was recommended as well asthe rebuilding of sheds.

Coastal Shipping

4. The consultants were asked to identify major shortcomings andto recommend any new investment in ships that may be required. A majorfinding was that the present fleet was much too large for the availablecargo and extensive scrapping was recommended. Fixed sailing scheduleswere suggested, as were the consolidation of shipping companies and thedecrease in the role of the regulatory body, the Merchant Marine Commis-sion.

Highways

5. The highway studies covered the following States:

Phase I

Minas Gerais, Parana, Santa Catarina and Rio Grande do Sul

Phase II

Region A Region B R<g4on C Region D Region E

Sao Paulo Rio de Janeiro Bahia Alagoas Ceara

Mato Grosso Espirito Santo Sergipe Pernambuco Piaui

Goias Paraiba Maranhao

Rio Grandedo Norte

The studies concluded with the listing of priorities for investment onnational and state networks, forecasts of financial expenditures on high-way investment, maintenance equipment, and maintenance and administration.They also included recommendations for the improvement of organization andmaintenance, financial programs and user charges.*

6. Recommended investment expenditures for construction and/or pav-ing are given in Table 11 (1970-1973). Tentative financing plan is shownin Table 12.

* Available December, 1969.

ANNEX APage 3

II. CONSULTANTS ENGAGED IN THE TRANSPORT SURVEY

Consultants and Nationality Duties

PHASE I

(1) Coverdale and Colpitts (USA) Coordinating consultants andrailway studies.

(2) INGEROUTE (France) Highway Master Plan and Organiza-tion Study, and Feasibility Studiesin the State of Minas Gerais.

(3) KAMPSAX (Denmark) Highway Master Plans and Organiza-tion Studies, and Feasibility Stud-ies in the States of Parana, SantaCatarina, and Rio Grande do Sul.

(4) NEDECO (Netherlands) Study of the Ports of Rio deJaneiro, Recife and Santos, and ofcoastal shipping.

PHASE II

(1) KAMPSAX (Denmark) Coordinating Consultants.

(2) Parsons, Brinkerhoff, ) Highway Master Plans and FeasibilityQuade and Douglas (USA) ) Studies in the States of Sao Paulo,

) Mato Grosso and Goias.

Edwards and Kelcey (USA) )) Highway Organization Studies in the

ASPLAN (Brazil) ) States of Mato Grosso and Goias.)

MONTOR-MONTREAL (Brazil) )

(3) NORCONSULT (Norway) ) Highway Master Plans and Organiza-) tion Studies in the states of Rio

Servicos de Planejamento ) de Janeiro and Espirito Santo(Brazil) )

(4) Xaver Dorsch (Cermany) Highway Master Plans and Organiza-tion Studies, and Feasibility Stud-ies in the States of Bahia and Sergipe

(5) Louis Berger (USA) Highway Master Plans and Organiza-tion Studies in the State of Alagoas,Pernambuco, Paraiba, and Rio Grandedo Sul.

(6) Sauti (Italy) Highway Master Plans and Organiza-tion Studies in the States of Maranhao,Piaui, and Ceara.

March 1970

First Plan of Action (PA-fl

Progress of Ilem_ntatimn

itemt tt

RAIIWAYS

1. Consolidation of Federal and State System Iottgntion of operatione is proceedirg.Plans for merger still under discussion.

2 * Amendrmnt of RFFSA's Statutes to permit consolidation In Copl*ted sid 1968.creation of Regional Systeme

3. Introduction of Regional System in Federal Raibraye Target date 1970 - Completed Auguet 1969.

4. Staff: a) Reduction of personnel to 120,000 by 1971. In 10 maotha (August/1968 - June/1969) staff wasrI d by 3,600 to 1

27,40

0- Reduction is being continued.

b) Changes in Labor-Wages legislation Subeitted to Governmnt - under study.

5. Accounting:a) Modernizirg of accounting uysts with assistamae Consultants started werk July 1969.

of consultants

b) Completion of mechanization by first half of 1969 pus to delay in appointing consultants, now setfor early 1970.

6. Operations:a) Revision cf procedores to improve efficiency Will be porsued with asistance of consultants now

appointed (SOFRERAIL).

b) Closure of 416 unprofitable stations by Dec. 31, 1969 A total of 428 stations will be closed by Dec. 31, 1969

7. Introduction of a new cost-based tariff systa by third quarter 1969 Will be pursued with assista ne of consultants now appointed.

6. Elimination of 7,300 km of unesonoric lines by 1972 Already closed 5,162 kmj balance is planned to be closed byend 1970.

9. Action on new line corztruction to be tsken as recomnded by Reoomendations have been foflowad with exception of oneTransport Survey subject to ationasl security ad social requirements project for which a feasibility study was prepared by consultante.

10. Deficit:a) Compensation by Qovernmert for erforced law rates Partially implemented - should be completed in 1970

("ncrmaliz ati on")b) Incorporation of 10% tax in tariffs NJ1 yet implemented

c) Reduation of operating ratio to 200 by 1968 (without Achievednormaliz ati on)

H113W AYS

1. Reorganization of Highway Administrstion:

a) Completion of DNER's reorganization stub' by the ed of 1968 Achieved. New organization legalized March 1969.

b) Gradual transfer of DNER's eonstruction antd maintenance US Bureau of Public Roads to start early 1970, pending final agree-functions to the DER's, met with UAID.

Contruction functions to be delegated to states on a road by road basi?.Maintenance: Road tax restructured atd esroarked for maintenancepurposes. DNER's share to be transferred to states to cover maintenanceexpenditures on National roads. Complete delegation of maintenancefnctions to Minas Geratsand 3 southern states to be accomplished in 1970.

c) Reorganization of DER's G1IPOT reorganization studies oompleted 1969Emblirg legtslation enbmitted to state authorities

M(fiaaa6 Gerais- Santa Catarina)Consultants beirg contracted for implementation

(Parana - Rio Grande do Sul)Reorganization underway (Bahia - Rio de Janeiro)

2. R-sruotn ring of Road user charges - Final proposals to be oubmitted jAut`en delayed pending publioation of Transport Survey Phase IIby the end of 1961 reoosmeuldatiosm (due Decenber 1969).

3. Proparation of investment budgets to be based on Transport Survey 3-year investment budget (1968-70) ars recent annual budgets arepriorities essentially based on survey priorities. Main exceptions are for low

standard roads to open up virgin territcries.

PORTS

1. Decentralization of Pxrt Adnnistration:

a) Completion by mid-1969 of irventories of assets of mrAjor Uderay for port of Santos and Rio de Janeiroports

b) Settirg up of autonoewnue and firancially viable entities Legislation enabling the set up of such entities has been lassed (1962)for the manages nt of maJor ports

2. Acccuntirg:

a) Appointssnt by the emd of 1968 of conaultunts to recrganize Consultants started work June 1969.accounti ng

b) Introduction of new acoounting procedtres by the second Due to delay in appointing consultants, introduction of new procedureshalf of 1969 now planned for mid-1970.

3. Adoption of cost-based port charges Due to delay in 2 above now planned for end 1970.

DECE`PBR, 1 '4

ANh3EX C

BRAZIL

Second Plan of Action (PA-2)

Outline of Measures and Objectives

TGANSPORT POLICY

Tipleaentation of GEIPOT reorganization during the course of VPi

RAILWAYS

1. Continuation of negotiations regarding merger of federal ard Sao Paulo state railways;

2. Staff

a) Reduction of staff to 120,000 by December 1971

b) Determination of minimum staff repiiresenrts - with assistance of consultants (SOFRERAIL) - by June 1970.

3. Tariffs

a) Tariff incmases - to be in line with inflation

b) Adoption of cost-based tariff policies by June 1970

c) Incorpcration into RFFSA's tariffs of the 10% tax on rail charges by June 1970

L. Uneconomdc lires

a) Implerentation of the 7,335 km program for closure of uneconoric lines during 1970

b) Study.a light density lines (traffie volua below 200,000 act ton km/route k-) by the end of 1970

5. Study to identify unprofitable stations far claare idutted by end of March 1970; ilmplementation to start by the end of 1970.6. Preparation of feasibility studies prior to corstraction of new lines

7. Preparation of a 3-year investment program (1971-73) based on traffic projections and financial forecasts by June 1970

HIGHWAYS

1. Reorganization of Highway Administration

a) Implerentation of ItER's reorganization with assistance of US Bureau of Public Road ccnsultants

b) Gradual delegation of D13ER's maintenance and construction functions to the DER's.

First Step: Delegation of maintenance fanctions to DER' s of southern states and MUnas Gerais arid transfer ofDNER's shame of Road Tax to cover related expenditures (daring 1970)

c) Reorganization of DER's

2. Planning

a) Strengthening of DNER's planning capacity in mid-1970

b) Establishment within IWER of a central investmnt reviewtrantanico for national ard atote proiecto during 1971

3. Supervisi on

a) Improvement of construction supervisi on

b) Employment of consultants to assist INER's supervisory staff

c) Creation within DNER of a central group for coordinaticn of oupervision in mid-1970

4. Road user charges

Restructuring of road user charges based on the recommendations of Phase II of Transport Survey. Will hold discussions with theRank in 1970.

FCh TS

1. Decentralization of Port Administration

a) Creation of mixed enterprises fwr the mnagement of major ports.

b) Reorganizatius of DEPYN with objective to become planning, policy arid rate controlling authority. Study to be carried out in1970 for implementation in 1971 and 1972.

2. Accounting

Introdaction of modern accounting procedures (under study by consultants) during 1971

3. Adoption of cost-based port charges.

L. Training of personrel in port and financial msnagenent and port handling techniques.

MARCH 1Y70

ANNEX DPage 1

REORGANIZATION OF HIGHWAY ADMINISTRATION

1. To achieve the best results for purposes of road work planningand execution the Government has decided to concentrate planning and over-all supervision of the national and state highway systems in DNER, withactual execution being delegated to state authorities. This will eliminatecostly duplication of facilities and allow for uniformity of criteria andmethods. Specifically this reorganization will make DNER responsible for:

(a) planning and regulatory functions;

(b) financing of road programs and supervision ofutilization of resources allocated;

(c) overall supervision of physical operation andfinancial activities;

(d) supervision of the application of legislationand rules; and

(e) completion of statistical data.

State authorities will be responsible for the executive side of the activ-ities, including construction, paving, general betterments, maintenance andancillary works.

2. Reorganization of DNER has commenced. A management study con-ducted by Brazilian consultants - Getulio Vargas Foundation - was completedin 1968 and DNER's new organizational structure was legalized in March 1969(Decree Law 512, and Decree Law 64, 242). Concurrently with DNER's reorgani-zation the strengthening and reorganization of DERs is proceeding. Duringthe two phases of the Transport Survey, reorganization studies were conductedfor the main states and all reports are available in draft form.

3. Four states covered by the First Highway Project (Loan 567 BR)have taken the first steps toward legalizing the organizational changesrecommended by the Survey:

Minas Gerais: This is already one of the bestorganized departments in the country. Legislationenabling DER to reorganize has been presented tothe state government (September 1969) and DERintends to implement the survey recommendationsduring 1970.

Parana: The State Highway Department has invitedconsultants (October 1969) to present proposals todefine the program of implementation of the proposedreorganization. Legislative action is pending.

ANNEX DPage 2

Santa Catarina: A draft law which embodies DER'snew organization has been submitted to the stategovernment for approval (September 1969). Proposednew organization is in close correspondence with theTransport Survey recommendations.

Rio Grande do Sul: The State Highway Department hasinvited consultants (November 1969) to present pro-posals to define the program of implementation of theproposed reorganization.

4. Reorganization of other DERs is also underway. The State ofRio de Janeiro has already approved the organitational changes recommendedfor its Highway Department. In the State of Bahia, regional districtshave been created in accordance with the consultants' recommendations.Other state highway departments have expressed their intention to imple-ment the recommendations in the near future.

March 1970

ANNEX EPage 1

THE PROJECT ROADS

The principal economic features of the regions in which projectroads would be located are given in Chapter 5 - Economic Evaluation. Theessential technical characteristics of the project roads, including de-scription of existing conditions and proposed standards, are given inTables 13-15. Quantification of economic merits are given in Tables 19-21. Descriptions of eacht project road follow:

A. In the Northeast Region

Roads Pposed for Construction and/or Paving

1. Route BR-222 (199.7 km). This is the only link in the importantroute between Teresina (capital of Piaui) and Fortaleza (capital of Cearaand the main industrial center of the region) that is not either paved orbeing pr _d. The area of direct zone of influence covers 17,000 km2 withan estimated population of 300,000 inhabitants. Most of the agriculturalproduction of the zone of influence is consumed locally, so the most impor-tant flows on this highway are long distance hauls of cement, meat, petro-leum products, rice and cotton. The ADT for 1972 */ is 356 vehicles ofwhich 79% are trucks. Traffic growth over the 1969-1976 period is estimatedto be 11%, and for the 1977-1991 period, 8% per year.

2. Route BR-324 (105 km). This is the only link between the majorroad network of the state of Bahia and Salvador, its capital and majorport. It plays a dual role of linking Salvador to its hinterland, wherethe movements are composed of short distance trips, as well as handlingall long distance traffic with origin and/or destination in this city.From km 0 to km 32, the 1967 ADT varied from a high of 10,730 to a lowof 3,700 vehicles with an average of 40% trucks and an average annualtraffic growth rate of about 9% until 1975 slackening to about 6.5% until1991. In this section the road is very congested and the accident rate ishigh (2.41 accident, and 0.33 fatalities, per million vehicle-km in 1967).From km 32 to km 105 the 1967 ADT varied from a high of 3,250 to a low of2,600 vehicles, with an average of 45 percent trucks, and an average an-nual traffic growth rate of 15% until 1975 slackening to about 6% in 1991.One of the country's most important industrial parks (Aratu) is being con-structed between km 8 and km 42, and is expected to contribute greatly totraffic increase. On the basis of the projected traffic it is recommendedthat Section I (km 0 to km 32) be constructed as a four-lane divided high-way, and for Section II (km 32 to km 105) improvement of the existing twolane highway is recommended.

*/ The 1972 ADT given throughout this Annex is composed of the ADT for1968, projected to 1972, the year of opening of the project roads,plus the diverted traffic which is expected to take place the yearof opening.

ANNEX EPage 2

3. Route BR-101 - (1,011.7 km). These road sections are part ofthe 4,000 km highway which is one of the two major north-south routes inBrazil, the other being BR-116 further to the west. BR-101 starts inOsorio in Rio Grande do Sul, some 600 km from the Uruguay border, andruns close to the coast, nearly the entire length of Brazil, linking themost important urban centers and ending in Natal, in Rio Grande do Norte.The direct zone of influence of this road project extends over 86,000 km2,and its population is about 2 million. Traffic flows on this highway arecomposed of lumber, cacao and cotton originating in Bahia and EspiritoSanto, and food products, cement, construction materials, and iron andsteel, originating in the manufacturing centers along the coast. Thisroad will also play an important role in the north-south movement ofpeople on business trips or as tourists. The 1972 ADT on these roadsections varies from a low of 984 to a high of 1,398 vehicles, of whichan average of 58% is trucks, and the estimated rate of traffic growth isabout 11% a year.

Roads Proposed for Detailed Engineering

4. Route BR-104 (306 km). This highway has two functions, namely,inter-connecting the productive agricultural interior of the northeasternstates, and providing an alternate route to BR-101 between Natal and theother important urban centers of northern Brazil, to Salvador, Rio deJaneiro and Sao Paulo in the south. The 1967 ADT on these road sectionsvaried from a high of 700 to a low of 200 vehicles, with heavy vehiclesvarying from 75 to 45% and the traffic growth rate increasing between 6and 10% per year.

5. Route BR-316/232 (302 km). This road plays an important rolein integrating various parts of the northeast by providing a direct linkbetween Teresina, Sao Luis and Belem on one hand, and Recife, the majorgrowth pole of the region, on the other. Since most of the limited pro-duction of the area of influence of this road is consumed locally, thetraffic which uses this route is primarily long distance through trafficbetween the above-mentioned centers. The 1967 ADT was 205 vehicles ofwhich 70% were trucks, and the annual growth rate is estimated at 11%.

6. Route BR-324 (4 km). This is an extension of Route BR-324 in-cluded in this project for construction (described above) and forms themajor access route to the northern section of the city of Salvador. Itis expected to relieve the congested traffic at the entrance of the city,and the estimated 1976 ADT is about 16,000 vehicles with 35% trucks, andthe traffic growth rate per year is estimated to be about 6.5%.

*/ Although about 25% of this project road is in the Central-East Re-gion, the present description covers the complete route.

ANNEX EPage 3

Roads Proposed for Feasibility Studies

7. Route BR-412/110 (207 km). This road provides a diagonal con-nection in the central part of Paraiba and Pernambuco between two impor-tant east-west highways, namely BR-232 originating in Recife, and BR-230originating in Joao Pessoa. The 1967 ADT was 265 vehicles of which 45%were trucks, and the estimated annual growth of the traffic is 10%.

8. Routes BA-30, BR-630, BR-030, BA-026/554 (617 km). This groupof roads, located in the southern part of Bahia, forms a small networkof transport alternatives from the area of Bom Jesus de Lapa on the SaoFrancisco river to BR-116 the major north south axis. The 1967 ADT variedfrom a low of 150 to a high of 265 vehicles on the various roads, thepercentage of trucks varied from a low of 35% to a high of 65% and theaverage annual growth is about 10%.

9. Route BR-101 (136 km) is a missing link in this important north-south ax4 - which will significantly decrease the distance of the long haultraffic which uses BR-101, by providing an alternative route to the pre-sent one which goes through Salvador. The 1967 assigned ADT was 640 vehi-cles with 72% trucks, and the rate of traffic growth is estimated to be9% per year.

B. In the Center-East Region

.oads Proposed for Construction and/or Paving

10. Route BR-135 (167.8 km). This is a part of the important linkbetween Montes Claros in the north of Minas Gerais and Belo Horizonte, thestate capital, about 433 km to the south. All of this route, except forthe section included in this project, is paved or being paved and formsan important link to Sao Paulo. The area of the direct zone of influenceof this road is 19,500 km2, and the population is about 185,000 inhabit-ants. It is an important producer of cotton, sugar cane and cement. Pro-cessing of agricultural and animal prodtucts has recently developed themost important being meats, vegetable oils, cloth, and skins and leather.The 1972 ADT is 385 vehicles, with 50% trucks and the estimated vehiclegrowth rate is 10% a year.

11. Route BR-365 (114.5 km). The construction and paving of thisroad completes an all paved highway between the western part of MinasGerais and Sao Paulo to the south (via Route BR-50), Belo Horizonte tothe east (via Route BR-262), and Goiania and Brasilia to the North (viaRoute BR-153). The direct zone of influence of this road has an area of5,600 km2 and a population of 130,000 inhabitants. Its main productsare rice, cotton and corn; and cattle raising is important. Canal SaoSimao, where a hydro-electric plant is planned, is an important regionaltourist attraction and the construction of this road will improve itsaccessibility to the inhabitants of the region's urban centers. The 1972ADT is estimated to be 553 vehicles, with 37% trucks, and the growth rateis 8% a year until 1982 when it is expected to slacken to 7% until 1991.

ANNEX EPage 4

12. Route BR-354 (110.7 km). This is a major link in the 824 kmhighway which runs between Eugenio Passos on BR-116 in the state of Riode Janeiro, and Cristalina in Goias. It also links the important regionalcenter of Patos de Minas to Belo Horizonte via Route BR-262. (The 30 kmsection between Patos de Minas and Lagoa Formosa is being paved by DNER.)The area of direct zone of influence of this road is about 9,000 km2 andthe population is close to 240,000 inhabitants. Its economy is based pri-marily on farming and cattle raising, and the most important exports arecorn, dairy products, and cattle. The 1972 ADT is estimated to be 327 ve-hicles, half of which are trucks, and the vehicle growth rate is expectedto be 9% a year until 1977 slackening to 7% per year until 1991.

Roads Proposed for Detailed En ineering

13. Route ES-37/36 (69 km). This road is of regional importance inthe north-central part of Espirito Santo and connects Nova Venecia andSao Domingos, two regional centers, to Vitoria, the state's capital viaRoutes ES-2 and BR-259 (both under construction and paving). The 1967ADT was 185 vehicles of which 55% were trucks, and the estimated vehiclegrowth rate is 9% a year.

14. Route RJ-133 (60 km) and Route RJ-B2 (60 kin). These form acontinuous east-west link in the northern part of the state of Rio deJaneiro, where at present the radial system is focused on the city ofRio de Janeiro and most of the east-west movements are therefore obligedto pass through it. Thus, by providing an alternate route, this link isexpected to decrease the distance of the east-west movements, and helpin relieving the congestion in the city. The 1967 ADT on Route RJ-133was 535 vehicles with 40% trucks, and on Route RJ-82 335 vehicles with84% trucks. Average annual traffic growth rates on these roads are 8%and 6% respectively.

15. Route BR-354 (128 km). This is a continuation of Route BR-354included in this project for construction and paving (discussed above),and are parts of a direct route from Patos de Minas, with its importantagricultural area, and Sao Paulo, via Route BR-381. The 1967 ADT was205 vehicles with 48% trucks, and the average annual growth rate is 11%.

16. Route MG-174/168/28 (188 km), Route MC-157 (101 km). These forman efficient regional network, serving an important agricultural area insouthwest Minas Gerais by inter-connecting the major regional centers.The 1967 ADT on these links varied from a low of 190 vehicles to a highof 435 vehicles, and the percentage of trucks varied from a low of 45 toa high of 51% while annual vehicle growth rate is about 10% throughout.


17. Route ES-43 (165 km) is an important regional road in north-western Espirito Santo, connecting it to the transport network of Bahia.

ANNEX EPage 5

The 1967 ADT was 180 vehicles with 34% trucks and the average annualtraffic growth is estimated to be 8%.

18. Route BR-135 (202 km) is the main road connection between Riode Janeiro and Belo Horizonte, with a 1968 ADT varying from a low of5,000 vehicles on the lesser travelled sections to a high of about 20,000vehicles on the section near Rio de Janeiro of which about 35% are trucks.A combination of poor alignment and heavy traffic have made this roadcongested, and the feasibility study is needed to recommend a new align-ment and suitable design standards.

19. Route MG-10 (148 km) links Pirapora on the Sao Francisco River,to Corinto in the central part of the state, and from there, via RoutesBR-135 and BR-40, to Belo Horizonte. The 1967 ADT was 1965 vehicles with35% trucks and the average annual traffic growth rate is 9%.

C. In the Center-West Region

Roads Proposed for Construction and/or Paving

20. Route BR-452 (181 km). This forms a link in the 490 km RouteBR-452 which, together with parts of BR-364 and BR-50, provide the bestroute from Cuiaba to Sao Paulo. It also provides, with BR-364 and BR-266,the best route from Cuiaba to Belo Rorizonte. Its direct zone of influenceis 30,000 km2 and its population is estimated at 280,000 inhabitants, witha growth rate of 6% per year, double that of the country, due to the highrate of migration. The economy of the area is based on agriculture, themost important crops being sugar cane, rice, bananas, and corn, as wellas cattle raising. The 1972 ADT is estimated to be 740 vehicles with63% trucks and the vehicle growth rate is expected to be 8% a year.


21. Route BR-153 (254 km). This is a part of the highway betweenBrasilia and the central regions of Brazil on one hand, and Belem andthe northern regions of the country, on the other. Since its construc-tion 10 years ago, it has played an important role in opening up theinterior of the country that has good agricultural and cattle raisingpotential. The 1967 ADT was 420 vehicles with 71% trucks, and the growthrate of vehicles is about 10% a year.

22. Route BR-060 (274 km) is a link in the highway that connectsBrasilia and Goiania to Cuiaba, via Route BR-364 (included in this pro-ject for a feasibility study, described below). It also connects at RioVerde with Route BR-452 included for construction in this project (de-scribed above), and these two roads together link the whole region direct-ly to Sao Paulo. The 1967 ADT was 312 vehicles with 46% trucks and theaverage annual traffic growth is 8%.

23. Route BR-163 (71 km). This is a link in the highway connectingCuiaba, the capital of Mato Grosso, to Campo Grande, the major growth

ANNEX EPage 6

pole in the southern part of the state where agriculture and cattle graz-ing are important. The rest of Route BR-163, from Bandeirantes to Cuiaba,is included in this project for a feasibility study (described below).The 1967 ADT was 340 vehicles with 74% trucks and the annual rate of growthof the vehicles is 6%.


24. Route BR-364 (661 km) is the major road connection between Cuiaba,southern Goias and western Minas Gerais connecting, at Canal Sao Simao onthe Goias-Minas Gerais border, with Route BR-365 included in this projectfor construction. The 1967 ADT was 285 vehicles, with 50% trucks, and atraffic growth rate of 7% annually.

25. Route BR-364/163 (758 km) is the continuation of the Route BR-163road section included in this project for detailed engineering (discussedabove), and provides the major north-south axis in the state of Mato Grosso.The 1967 ADT was 400 vehicles, with 50% trucks, and the estimated trafficgrowth rate is 8% a year.

D. In the Far South Region

Roads Proposed for Construction and/or Paving

26. Route BR-470 (88.6 kmn). This is an extension of Route BR-470financed in the Bank's First Highway Project and forms a part of the 435Im highway which runs from Itajai on the coast of Santa Catarina to LagoaVermelha in Rio Grande do Sul. There it connects with Route BR-282 thatterminates near the Argentine border. The area of the direct zone of in-fluence of this road is about 3,500 km2 , and its population about 140,000inhabitants. The economy of this area is based on agriculture, and themost important products are lumber, potatoes, corn and wheat. The 1972ADT is estimated to be 1,050 vehicles with 55% trucks, and the vehiclegrowth rate is expected to be 14% until 1976, slackening to 10% thereafteruntil 1991.

27. Route BR-158 (62.8 km). This will be the first paved link inthe 2,700 km highway which runs from the northern limits of Mato Grossoto the Uruguay border. The area of the direct zone of influence of theproject road is about 7,500 km, and its population about 220,000 inhabit-ants. Its economy is based on agriculture and pig raising, and the mainproducts are tobacco, rice, corn, wheat and potatoes. The 1972 ADT isestimated to be close to 1,000 vehicles, 41% of which are trucks, and theaverage annual growth rate is about 9% until 1977, slackening to 6% there-after until 1991.

28. Route RS-38/11 (47 km) and Route RS-3 (50 km). These are locat-ed in the very fertile area northwest of Porto Alegre and provide improvedtransport between the major urban centers of the area (Lajeado in the caseof Route RS-38/11, and Santa Cruz in the case of RS-3) and Porto Alegre.Route RS-3 is a continuation of Route BR-386 which is being financed by the

ANNEX EPage 7

Bank's First Highway Project. The common zone of influence of these roadshas an area of about 20,000 km2 and a population of about 600,000 inhabit-ants. The regional economy is based on agriculture with potatoes, wheatand tobacco the main products, in addition to the raising of pigs. The1972 ADT for Route RS-38/11 is estimated to be 1,200 vehicles of whichhalf are trucks, and the annual rate of growth is about 9%. The 1972 ADTfor Route RS-3 is about 600 vehicles, with 63% trucks, and the growth rateis 8% per year.


29. Rotute PR-12 (44 km). This road is of regional importance andconnects a fertile agricultural area in northern Parana to the east-westoriented transport system of the state, via Route BR-369 which also runsacross the state of Sao Paulo. The 1967 ADT was 1,295 vehicles with 56%trucks, and the average annual rate of vehicle growth is 11%.

30. .ooute BR-153 (241 km) forms an important inter-regional highwayon the central axis of the three southern states linking the area to theconsumption centers to the north. The 1967 ADT was 325 vehicles of which64% were trucks, and the average annual rate of traffic growth is 15%.

31. Route BR-386/158 (163 km). The construction of this road sec-tion will complete the "Kennedy Highway" which connects the western partof Santa Catarina and northwestern Rio Grande do Sul, to Porto Alegre.The last 54 km section outside Porto Alegre was included in the Bank'sFirst Hlighway Project. The 1967 ADT was 250 vehicles of which 58% weretrucks, and the average annual rate of vehicle growth is 14%.

32. Route RS-19 (25 km). This road north of Porto Alegre is ofregional importance and connects an important agricultural area to RouteBR-116 the most important north-south axis in the region. The 1967 ADTwas 925 vehicles with 61% trucks and the average annual traffic growthis 10%.


33. Routes PR-13 (221 km) and Route PR-67 (80 km) form a small net-work of road alternatives in the agricultural north-central part of thestate of Parana, linking a number of regional centers to the main diagonalhighway of the state, Route BR-376, and through it to Curitiba, the statecapital. The 1967 ADT varied from a high of 2,000 to a low of 385 vehi-cles on the various road sections, the truck percentage from 62 to 40, andthe average annual rate of traffic growth from 8 to 15%.

34. Route RS-54/48 (246 km) and Route RS-50 (128 km) form a smallroad network in the northern part of Rio Grande do Sul, connecting theregional centers of Santa Rosa and Ijui to Route BR-386, included in thisproject for detailed engineering, and through it to Porto Alegre. The1967 ADT ranged from 200 to 135 vehicles on these roads with 60% trucks,and an annual growth rate of vehicles of 15%.

ANNEX EPage 8

35. Route BR-158/377 (235 km) is a continuation of Route BR-153included in this project for construction, linking the north-central partsof Rio Grande do Sul to Santa Maria, an important town in the center ofthe state. The 1967 ADT was 425 vehicles, with 62% trucks, and the aver-age annual traffic growth is 11%.

March 1970

ANNEX FPage 1

BRAZIL

Consultants Engaged in the Preparation ofthe Second Highway Construction Project

I. Detailed Engineering Studies

(For roads proposed for construction and/or paving)

Consultants and Nationality State Road Number

Astep/H. de Santana (Brazil) Piaui/Ceara BR 222

(Xaver Dorsch (Germany) Bahia BR 324(Tenpo (Brazil)

Hidrcservice (Brazil) Bahia BR 101

Astep SA (Brazil) Bahia BR 101

Tenpo (Brazil) Bahia BR 101

Copavel (Brazil) Bahia BR 101

ESPA (Brazil) Espirito Santo BR 101

Euler (Brazil) Rio de Janeiro BR 101

ETUC (Brazil) Minas Gerais BR 135 (MG1)

Consol (Brazil) Minas Gerais BR 365 (MG54)

Consol (Brazil) Minas Gerais BR 354 (MG163)

Proenge (Brazil) Goias BR 452

Etel/Planisul (Brazil) Santa Catarina BR 470(SC43/68)

Etel/Planisul (Brazil) Rio Grande do Sul BR 158

Louis Berger (Brazil) Rio Grande do Sul RS38/11

Sondotechnica (Brazil) Rio Grande do Sul RS 3

ANNEX FPage 2

II. Feasibility Studies

(For roads proposed for detailed engineering)

Consultants and Nationality State Road Number

Astep (Brazil) Rio Grande do Norte/Paraiba/Pernambuco/Alagoas BR 104

Technometal/Rodio (Brazil) Piaui/Ceara BR 116/232

X. Dorsch (Germany) Bahia BR 324

Proenge/Lasa/Etapa (Brazil) Minas Gerais BR 354 (MG25)

Hidroservice (Brazil) Goias BR 153

Enecon (Brazil) Parana/SantaCatarina/Rio Grandedo Sul BR 153

Enecon (Brazil) Rio Grande do Sul/ BR386/158Santa Catarina (RS51/SC102/11)

March 1970

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SECOND HIGHWAY CONSTRUCTION PROJECT + PE R N A M 8 U C O+ 0%0 4,-

STATES OF MARANHAO, PIAUI AND CEARA + ',, P

- -d -o0 t nod T f... . RHoods grode con-tnuctod to f-ol engineermg stondondo + + +o- oo,, T< 5 Yr

- -- Hoods under oonst-ootion o- R-f- ,,,-- .- AT++- +--o Plonnod oodt o G

* DNER field mointenono, hoodquorteno o B A HAA-* DER Nfeld mointenonos hoodq-uotfro 1 B

HIGHWAYS INCLUDED IN THE SECOND PROJECT +F., -t-t- -d/.-. P. / -i9gFor onontruooion god/or pooing t 0 50 000 050 z00 0'

For deftolod -nginnering + 9 A Ku

Stoto boundony

DECEMBER 1969 INRr R 1RD 2740

MAP 4

BRAZIL Rums A 'y. o Are.... n-

SECOND HIGHWAY CONSTRUCTION PROJECT / U ESTATES OF RIO GRANDE DO NORTE, PARAIBA, o A

PERNAMBUCO AND ALAGOAS | Mosoro M.c,u

P-ved roads . * N....... Roads grade -onatruct.d to Hnal enginsering standards Y

Unpaved roads x°,- - -- Roads .,der construct-ion A x a .R-30o \ JoEo edniana

-- +++ -Plarned roads aeI 5@5,55 co-n

A DNER field oais-tenasn h.adq-ort-ns I 0 r a* DER fi.ld ma-nfenanse headq-art-rs JoaQ anb. A uRsO A a0 dt3

HIGHWAYS INCLUDED IN THE SECOND PROJECT SCOO a. D' -'_ r NATAL_ For filed nF gineerng _tid soa

....... Fo nf-ibility tudy P - 4 du

Stutn bo-ndary w r NA *o4~~~~~~~~~~~~~~~~~~~~~~~~~S onvo C-, xx f rorras Nov03 ont Crvv x

e *tico~~~A A >x r t *e-cac r,~--- C 0

<^ x 1 '- Pomuol Ite *, -*~ + A nCl, Conervoarstomaf

5 C.~~~~~~~~~~~~~~~~~~~~-

x E A R A P Cd 0 OOord.v tpe

A en~~~~~~~~~~~~~~P A +

7 N ,-<*s | >, >!o- | \\ ws \ D Espero~~~~~~~~~~~~~OAO/ a. A~ ~ a A

~~~~~~~~~~~CrboCn snar * oX 'R-ECIFE

00 XP Q CaloA lfon' 010d GUw'la PESSOA

L~~~~~~~~~~~~~~~~~~~~ Ž' G dof Irdios _ Analoa^\ i 0

C,b

i A ~ ~ ~~H I A a OaiOO. S

A,-m ................... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ p 6\ .....-g.

A Cod

_ . _ . \ _~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~doO 1~d

CESSUASy 0970 oBRD-unorM

MAP 5

O (P I A U I e 1s £ ; p a BU,OA,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I~~~~~~~~~~~~~~~~~~J C*. 4 S|

fz B g1|_ rz O~~~~~~~" ) X -x )t Senor do Sm

t t t ty ,* , Xx tGbesr~~~~~~x

z ,c i-'- CaseNova G uc -0n %

s ; y} /}~~~~~~~~~~0f x 8 IRr mJomt90 / P vnkh1

-l Juoceira~G A / A' , (of

BRAZIL 00 Loude Rros c c

SE ON HI H A COS RU TOonudCos Xg, npoi

STTE OF~ BAHI AN4SRIP30> ct

*3) + s $oads qrade aondru% CopitnarenGs-o-

----- Rod unde 3'srcio s

302( 1% $M.d.Chop6u We* -

B | | lenne road 9k24 XXeR2

ust* N for ieo d $c 5242qI IFotrar o do

It

It *

* *E fiel meneac eaqatr 0FZGyr

0 B A~~~~~~~~~~~~~~~~~~~1loeabf re

1 4~~~~~I

0. 't~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4¾ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r 1.

Forcontrutioa d/ rio h -aving p ALAhOR

I # Corrmntlno4

Born Jesus~~~~~.0 t' .R-03

Maa;r , Protonr 3R-24

FESRUARY 1970 A Masiopul~~~~~~~~~~~~~A E.rpoi

-'--'S eUpaved road

- Roads under construction ~ ~ ~ ~ 6- 3

SECOND ~~~~HIGHWAYS ICOUENSTRUCTICOND PROJECT .F,i

F - ood codetructonand/rctving

CeceeCeC. For feasbility study 50C n S 350 0 '150

Slate boundary 'ESANbTO >. KILOMETERSI SANTO .'~~'l' Pedro CaoriIBRD-2742R

FEBRUARY 1970

MAP 6

rn--,A-H j IIH ABRAZIL ..T3AI

SECOND HIGHWAY CONSTRUCTION PROJECT 'O.-

STATES OF ESPIRITO SANTO AND RIO DE JANEIRO

Paved roads /- *

*........ Roads grade constructed to final engineering standards eS iv 0 a

Unpaved roads e• *

- - - - Roads under construction e

++-4-+- -+- PlGnned roads ¼ En *,A ONER field maintenance headquarters s vaedr:* DER field maintenance headquarters G VosFrneioed *, - S0 .

HIGHWAYS INCLUDED IN THE SECOND PROJECT N. ..

For construction and/or paving 2For detailed engineering

......... For feasibility study

- T State boundary

Aimere / Ci.

"C I~~~~~~~~~C

tti~~~~~~~~~i

()~~~~ ** @ -e *uER-2e2%4ORI

er ernins 3 + lto i

i a R i a pen S'0

TereTi. Lo.s.ni

deiAbi-no S. An toni

j it~F A d S Foao do 9rr

50~' *'.~ . .i, rdFo P eng

50100p~5 -- !~cj . uu t Fw Do. Q.entres

V,Pt,Ro s.. gDECEMBER 1969 IBRD 274r

DECEMBER 1969 IBRD 2743

MAP 7

BRAZILB A

SECOND HIGHWAY CONSTRUCTION PROJECT I ,

STATE OF MINAS GERAIS t

Paved roads d 4 t 4 ,''vrs

**e* Raads grade ovestruoted ro tirl sogieserirgtardards a-7 1 st of .0 qt0 0/w

Udpoaed roads a t / o---

-- _ Roads aedsrooonstrvorior 1 t' d7

r/ tta. / x

-s--s-4--r Plarsd roads wi or t F x MC rvooers v; S A DNER field male-enarce headquarters / - Vo r ad

U DER fltld sminte-a-os headqu.rrsrs Fo.ooro ad.

HIGHWAYS INCLUDED N THE FIRST PROJECT c v _ Nr- ojrf ;

F For ooretroorlor ardoor pamgvr\ ic niavSIr Tolc Wvg 5

HIGHWAYS tNCLUDED IN THE SECOND PROJECT X \* Te \ gf qI4 :_ -osu cD|o

For .o.struotion ard/or paoirg

For detl.,Idegarirg

........ FoT feOoIbIlltr stody

S__tate bou-d,re

\ 9 < '-' _P--U-

=-4

o t s

5~~~~~~~~~~~~~~~~~~~~~~~~aov Ce ds -, *v 0oss9c

00 # s0 Rov taPucuI htirimEo > } h ° l T EI

aEsIUChY IseD 40 soT4 '4 4 aasm~P

41 co~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~o

4 0(5 OOt~~ ~ ~~~~0

GO >oc4 0000 , L o 4t 0

MAP 8

BRAZIL.

SECOND HIGHWAY CONStRUCTION PROJECTSTATES OF MATO GROSSO AND GOIAS

Paved roads......... Roads grade onstruted firl engineiring standards

Unpaved roads- ___- RReas under construction

-- -4-*'- Planned roadsA DNER field maintenance headquarters

* DER fielt maintenanse headquartera

HIGHWAYS INCLUDED IN THE SECOND PROJECT

= Forn constr`etian and/ir paving 4"', 4

A For detailed engineerling MAR NHA

A M A Z O N A S 4 . ... For feasibility study Arg-uMAH

State boundary x

- - - International boundan ,/t

__ _ _ S _+ 'r tbvo, I / tr

+ t -- _ . pa,,-P A R A +0 arnrrts s

~~~~~ N. K~~~~~~~~~~~~~~N

/ ~ ~~~~~~ ~ ~~~~~~~ ~ ~ ~ ~ ~~~~~~~~~~~~ >+ tt jh.nvA, o| co,,to

R O N D O N I A g t JO < S>t Ss;; G~~~~~~~~~~~~~~~u ruanionr t

'

IL V O r

ROND6NIA k ,

> A T S7 G 0 S S° k*'*J j ) fi ro4 A 04

OltiP+ S * 3 / H I A

MAT GOn <A S $RAHIAs

M d. - 4 tA. ,tseotrwtrM.B MOi L.. I.- S I-1f. AR A To (

eto

Alt. 7i,0 C, P0ev + I/

pondendeulic 0 4BR4S,JLJA'~~~~dald

Alto.7/t0euoco R.d s 4 a A 9 tu Sn G E Rl A I S

7_ Fvorseb, #Eet / s°~veiAnagu mires ibt rt5 Sdo 4t5sR. 7* ia tt a -/ a

V t¢uldouonqr~~ ?s-' 0 ac I A

PA~~~~ R AG Ue AY Caral

, _ -K LuOMeiTER

PD,ECEMBERirdig. Pe ib 7b Sd, / 196

To Ar-sdae 'v5 Pr

Pat *M. 0 O ion 200 3000

LDECEMBER 1969IBD24

MAP 9

rPalo ProCearJ S AO PAU LO SECOND ~BRAZILx/ T sompclo. Pt. oC- S A O P A U L O SECOND HIGHWAY CONSTRUCTION PROJECT

°30 s J.. to In Pt.. Al-ood. STATE OF PARANAi % -l *sON°.. Londrino t 1 / t 1 doSmP.o Paved roads

-A; ...... Roads grade constructed to final engineeringLoando '# standards

Po CAMBAR Unpaved roadsC) PARAh ~~~~~~~~~~~~~~~~~~~~~~~*--- -- Roads onder construction

o oU.p'I. h -I- -f- -s-- Planned roaids

'0< + ,R Pi.; o A DNER field D VaiTtenace headquartersAl * I om Pt,~ DER field maintenance headquoarters4 ELO~~~~~~~~NDRN Oso o.hHIGHWAYS INCLUDED IN THE FIRST PROJECT7' MARIN N Ft.. - ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~For conaftrution anallor paving

4 JANDOIS OPUCAROSO ~~~ conaoiAo~~ Tdoaa HIGHWAYS INCLUDED IN THE SECOND PROJECT

0 Toledo~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~o eaie niern

S A N T A\ I+ lVC A T A R I N A.DECEMBER 1969

U nternatio18RD -274n6

q ° AR~AGETINA,~ ~~ ~~~ ~~~~~~~~~~~~~~~ ;Ce %/FPF4$AC

'' 7 < 0 / WX > W p ?~~Um 9 f

:<~~~~~~

MAP I

& -'\.R ^ t Xs W W/ at cORAZIL~ ~~~~~~ 7~ > 2! r JS$

A,,

Poe ea rod r Al f

-- _-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~a Rod underr roscutrn.-a t '/

+++ | Plonnsd roods 9t fi 4/2t Jl Xf 1~~~~~~~~~~~~~~~~~~~P. hainar.

* E il ainccacTE JadqoraorO Sa SJ J S.t L5O O

HIGHWAYS INLUE IN THFIST ROJ E C Af /' *

___. Fo metle Aern j2_

C)~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C

-~~ ~~~~~~~~~~~~~~~~~~~~~~HD Z741STNc

SECONDE HIHA9CNTUCINPRJC

STATE OF RIO GRANDE DO SUL~~~~~~~~~~~~~~

Paoea roada ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~ t

. Roadsgradeconotuotnoto dm0 engireerlsg stndard

Unpaved roads~~~~~~~~~~~~~~~~~~~~~~~

SECOND ~HIGHWAYS ICOE NSTRUCTIRST PROJECT

HIAHWAYS RIOCUE IRNDTE SEON PROEC

Fo,dtaled an.0d ig ooon

P .-- Intra-da oudr

DECEMBER 1H69 ~ DE RiHdO- 2..meh.dq.. I

INTERNATIONAL BANK FOR RECONSTRUCTION AND...

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