-R ÉS T R I C T E D

Report No. PTR-43a

This report was prepured for use within the Bank and its afflliated 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 HIGHWAY IMPROVEMENT PROJECT

REPUBLIC OF CONGO

April 20, 1970

Tranlsportation Projects Department

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Currency Equivalents:

Currency Unit = CFA Franc (CFAF)CFAF 1 = USW0.36US$1 - CFAF 277.71CFAF 1 million = US$3,600

Fiscal Tear:

January 1 - December 31

Weights and Ieaaures: Metric

Metric: British/US Equivalent

1 kilometer (km) = 0.62 miles (mi)1 meter (m) = 3.28 feet (ft)1 square kilometer (km2 ) = 0.386 square miles (sq mi)1 hectare (ha) - 2.47 acres (ac)1 liter (1) = 0.22 imp. gallons

0.26 gallons (US)1 metric ton (t) = 2,204 pounds (lbs)

Abbreviations - Acronyrs

- Average Daily TrafficATEC - Agence Transequatoriale des CommicationsATC - Agence Transcongolaise des CommunicationsBCEQM - Bureau Central d'Etudes pour les Equipements d'Outre-MerCAR - Central African RepublicCEBTP - Centre Experimental de Recherches et d'Etudes du Batiment

et des Travaux PublicsCFCO - Chemin de Fer Congo-Oc`eanCPC - Compagnie des Potasses du CongoFAC - Fonds d'Aide et de CooperationFED - Fonde Bbropéen de DeveloppementLNEBP - Laboratoire National d'Etudes des Travaux PublicsRNTP - Regie Nationale des Travaux PublicsIUNDP - United Nations Development Programmevpd - Vehieles per day

REPUBLIC OF CONGO

APPRAISAL OF A XIGHWAY IMPROVEMENT PROJECT

TABLE OF CONTENTS

Page No.

SUMARY. . ...... .. ...... . .i

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

2. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . 2

A. Economic Setting . . . . . . . . . . . . . . . . . . . 2B. The Transport Sector . . . . . . . . . . . . . . . . . 2

3. THE HIGHWAY SECTOR . . . . . . . . . . . . . . . . . . . . . 3

A. The Highway Network . . . . . . . . . . . . . . . . . 3B. Traffic Characteristics and Growth . . . . . . . . . . 4C. Administration . . . . . . . . . . . . . . . . . . . . 4D. Finance. . . . . 5E. Maintenance . . . . . . . . . . . . . . . . . . . . . . 5F. Engineering and Construction . . . . . . . . . . . . . 5G. Planning and Investment . . . . . . . . . . . . . . . 6

4. THE PROJECT . . . . . . . . . . . . . . . . . . . . . . . . 6

A. Description . . . . . . . . . . . . . . . . . . . . . . 6B. Cost Estimates and Financing . . . . . . . . . . . . . 7C. Execution . . . . .. . . , . . . . . . . . . . 8

5. ECONOMIC EVALUATION . . . . . . . . . . . . . . . . . . . . 9

A. General . . . . . . . . . . . . . . . . . . . . . . . . 9B. Traffic . . . . . . . . . . . . . . . . . . . . . . . . 9C. Economic Analysis . . . . . . . . . . . . . . . . . . . 9

6. RECOMMENDATIONS ............. ...... 1. 1

TABLES

1. Highway Network 19692. Comparison of Highway Densi;:es and of Vehicle Fleets 1969

(Continued)

This report was prepared by Messrs. Y.. 0. Schulte (Economist) and J. Doyen(Engineer) and was edited by Miss J. Murphy.

TABLES (Continued)

3. Traffic Levels on Classified Highway Network 19684. Annual Highway Expenditures 1965-19685. Capital Expenditures for Highways 1964-19686. Design Standards7. Flow of Total Transport Costs - Reconstruction of Section I8. Estimated Vehicle Operating Costs on Project Road9. Economic Analysis of Section Il

CHART: Highwav Administration Organization Chart

MAP: Republic of Congo - Transportation System and Highway Network

REPUBLIC OF CONGO

APPRAISAL OF A HIGHWAY IMPROVEMENT PROJECT

SUMMARY

i. The economny of Congo (Brazzaville) is based on agricultural pro-duction and on the export of timber and potash, and thus relies heavily onits transport system. The highway network provides a vital complement tothe railways and waterways which constitute the backbone of the transporta-tion system. Reliable feeder roads and an efficient trunk road network arerequired to facilitate communication between the centers of production,consumption and export.

ii. The highway network is relatively well-developed. The highestpriorities in the highway sector are proper maintenance of the entire systemand improvement of selected roads. Under an IDA financed Highway EngineeringProject (S-6 COB), the Consultants, BCEOM (France), are presently studyinghighway maintenance needs and are carrying out the detailed engineering forthe improvement of two high-priority roads. The proposed project providesfor the improvement of one of these roads, the Pointe Noire-Makola road(34.1 km), which links the port of Pointe Noire with the potash mine andrefinery of the Compagnie des Potasses du Congo (CPC) near St. Paul and witha rich agricultural area.

iii. Total cost of the project is estimated at US$2 million includingcontingencies. IDA will finance the foreign exchange cost of the project,estimated at US$1.5 million equivalent or 75%, including consultants' sub-sistence allowances. Local costs will be borne by the Government.

iv. The Credit will be made to the Government of Congo; the RegieNationale des Travaux Publics will be responsible for the execution ofthe project. Consultants will supervise the construction. The benefitsof the project will, for the most part, consist of savings in vehicleoperating costs and reduced maintenance costs, estimated to yield a rateof return of over 17%.

v. The proposed project constitutes a suitable basis for an IDACredit of US$1.5 million equivalent.

REPUBLIC OF CONGO

APPRAISAL OF A HIGHWAY IMPROVEMENT PROJECT

1. INTRODUCTION

1.01 In 1965, a Bank/IDA mission identified two road projecta inCongo: (a) the construction of the Sibiti-Zanaga road (143.5 km) toopen a new forest area for timber exploitation, and (b) the improvement,including bituminous surfacing, of the Pointe Noire - Bondi road (43 km)which links the port of Pointe Noire with the Compagnie des Potasses duCongo (CPC) potash mine and refinery and the agricultural hinterland ofSt. Paul. Under a Bank Technical Assistance Grant (US$185,000), signedin November 1966, the French Consultants, BCEOh, carried out the feasibilitystudy and preliminary engineering of the Sibiti-Zanaga road. The detailedengineering of this road and the feasibiïity study and detailed engineeringof the Pointe Noire - Bondi road are beîng carried out by BCEOM under aHighway Engineering Credit of US$630,000 equivalent (Credit S-6 COB) datedMay 26, 1969. lhis credit also provides for the preparation of a programto improve maintenance of the national highway system. It was the firatBank Group lending operation in the transportation sector of the Congo.

1.02 The detailed engineering of the Sibiti-Zanaga road will be com-pleted by June 1970. Regarding the Pointe Noire - Bondi road, theconsultants' final report on the feasibility study was completed inFebruary 1970. Only the improvement, including bituminous surfacing, ofthe Pointe Noire - Makola section (34.1 km) was found to be economicallyJustified, since beyond Makola, the terrain is more difficult and trafficdecreases sharply. Detailed engineering has been completed and theconsultants are proceeding with the preparation of the bidding documents,_..pected to be completed by May 1970.

1.03 In April 1969, the Government requested financing from Fondsd'Aide et de Cooperation (FAC), the French aid agency, for the upgradingof the first 15-kilometer section of the road from Pointe Noire, but FACfinancing was not forthcoming. The Government then requested IDA to as-sist in the financing of the entire road.

1.04 The total cost of the proposed project will be about US$2 millionequivalent. The IDA credit of US$1.5 million equivalent will cover theforeign exchange cost of the construction and of consultants' services forconstruction supervision. Refunding of the Highway Engineering Credit S-6COB will be considered under future Bank/IDA lending operations when the en-gineering work under that project has been completed.

1.05 The project was appraised 3y Messrs. H. 0. Schulte (Economist)and J. Doyen (Engineer) in November 1969 on the basis of the report onthe feasibility study and detailed engineering prepared by BCEOM. Thisreport was prepared with the editorial assistance of Mies J. Murphy.

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2. BACKCROUNiN

A. Economic Setting

2.01 The Republic o£ Congo lies astride the Equator on the west coastof Central Africa. It has a short coastline of about 200 km along theAtlantic Ocean, and stretches more than 1,Q00 km into the African contin-ent, bordered by Gabon, Cameroen and ̂ he Central African Republic on itswestern and northern erontiers, and by the Democrati-c Republ!c of r'ongc(Kinshasa) to the east and south. Beyond the coastal plain, access to thehinterland is rendered difficult by the Mavombe mountain range.

2.02 The country has an area of about 340,000 kn2 , i.e. about ihesize of Italy. Its present population is estimated at almost one millioninhabitants. Brazzaville, the capital rabout 170,000 inhabitants). iPointe Noire, Congo's only seaport (100,000), are the main cities. "Ypopulation density of about three inhabatants per km2 is one of the lowestin Africa; three-fourths of the population, however, is located in thewestern region.

2.03 The economy of the Congo is mainly based on forestry, agriculture,and, recently, mining. Timber exports presently account for about 50% offoreign exchange earnings. The development of agriculture has been limitedbecause roughly one-half of the country is covered by dense tropical for-est and the soils are generally poor. The Niari Valley in the westernregion has agricultural potential, particularly for sugarcane productionand livestock. A ranching project for which Bank group financing will besought is presently under preparation.

2.04 The country's main industrial venture is the potash mine andrefinery of the CPC at St. Paul. The CPC, which received a Bank loan (Loan480-COB) of US$30 million in 1967, started production ln mid-1969. Outputhas been less than expected so far, due to technical dilfficulties; thecompany is confident, however, that it will reach its production target of850,000 tons of potash per annum by the end of 1971. Future productionincreases will depend on world market conditions. Apart from the CPC mine,the industrial sector of the Congo is small but relatively diversified.

2.05 Economic growth ln recent years is estimated to have been about4% per annum in real terms. Gross domestic product per capita was esti-mated at about US$200 equivalent in 1969.

B. The Transport Sector

2.06 The transportation system of Congo, consisting of 10,850 km ofroads and track, 2,300 km of navigable waterways, and 800 km of railway,is not only of vital importance to the economy of Congo, but to that ofother countries of west-central Africa as well. Gabon is dependent onthe 285 km railway branch from Mbinda to the main rail line at Dolisiefor the export of manganese, presently totalling about 1.2 million tons

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annuallv. Land-locked Chad and the Central African Republic (CAR) havebeen channeling a large part of their international traffic via the trans-equatorial route, through Congo's river and rail systems and the seaportof Pointe Noire. In total, the port of Pointe Noire handles about 2.5million tons annually, of which about 55% represents transit traffic.

2.07 The transequatorial transport route, consisting of the port ofPointe Noire, the CFCO railway (Chemin de Fer Congo-Ocean), the port ofBrazzaville, the Congo-Ubangui river system, the port of Bangui (CAR),and the road from Bangui to Fort Lamy (Chad), was operated until October1969 by the Agence Transequatoriale des Communications (ATEC), an inter-governmental agency set up in 1959 bv the Congo, the CAR, Chad and Gabonand administered jointly by these four countries. In October 1969, theCongolese Governînent took over all of ATEC's assets inside the Congo,i.e. the ports of Pointe Noire and Brazzaville and the CFCO railway, andset up a new agency, the Agence Transcongolaise des Communications (ATC).ATC is continuing transport services for the former ATEC member countriesbut intends to replace the joint ATEC convention 'by separate, bilateralagreements with each country. The nature of these agreements as well asthe impact of the Congolese Government's decision on transport flows inEquatorial Africa is not known at present.

2.08 Internally, the Congo and Oubangul rivers, their tributaries,and a feeder road system link the northern part of the country with Brazza-ville. This river port handles about 300,000 tons of traffic annually.The CFCO railway, complemented by roads, serves the Brazzaville - PointeNoire area. Annual traffic volumes on the railway amount to 2.5 milliontons. The railway was not originally built to carry these large volumes,and the section which crosses the difficult Mayombe range should be improved.In June 1969, UNDP agreed to finance a feasibility study, with the Bank asK.ecuting Agency, of the realignment and rehabilitation of this section.Consultants have been selected but the start of the study was held up untilsatisfactory arrangements could be concluded with the newly established ATC.Field work for the survey is now expected to begin in mid-1970.

2.09 Transport coordination does not present a particular problem inthe Congo. The basic transport infrastructure exists, and the roles ofthe various modes of transport are more or less naturally defined. ATCwill continue to coordinate investments and policies within its own system.

3. THE HIGHWAY SECTOR

A. The Highway Network

3.01 Congo's highway network serves primarily as a feeder to the rail-way and waterway systems and plays a vital role in ensuring communicationwith the sparsely populated regions of the interior. Of the 10,850 km ofroads and tracks, about 1,975 km are classified as national roads, 4,220km are prefectoral and 2,170 km are local roads; the remaining 2,500 km

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are unclassified seasonal tracks (Table 1). Aithough the network s ra½herextensive, yielding an average density of 32 lan per 1,OQ0 km2 (Table 2),most of the roads have low design standards and are in poor condition. Ofthe entire network of 10,850 km, only 1.500 km, including 335 Ian of oS wedroads, provide reliable a'.i-weather service.

B. Traffic Characteristics and Growth

3.02 The country's total vehicle fleet is estimated at about 7,500,of which about 65% are passenger cars, 20% light trucks and buses, and15% trucks. Vehicle density is about one vehicle for every 125 inhabi-tants; comparison with other African countrîes of similar economic con-ditions is given in Table 2.

3.03 Traffic counts have been conducted at river crossings since 1966and, pursuant to Credit S-6 COB, the Government îs proceeding with the es-tablishment of systematic counts on all important roads. As shown inTable 3, 24% of the classified roads carry more than 5,000 tons annually.Traffic has increased rapidly during the past five years on roads nearPointe Noire and Brazzaville, on the road from Gabon to Dolisie, and onthe road through the Niari Valley. Traffic growth in the central andnorthern regions appears to have decreased since 1966. This change intraffic patterns is symptomatic of a general lessening of productivity inrural areas, and the population exodus to urban areas.

C. Administration

3.04 The highway network is administered by the Regie Nationale desTravaux Publics (RNTP), a semi-autonomous state enterprise which replacedthe Department of Public Works in 1965. The RNTP has a Board of Directors,presided over by the Minister of Public Works and Transport (see Organiza-tion Chart). In many respects, the RNTP functions as a Government agency;its employees enjoy civil service status and are paid from the generalbudget. The Director General, however, enjoys a large degree of freedomin planning and management. The RNTP headquarters in Brazzaville includesfour central services responsible for (i) administration and budgeting,(ii) highway planning, engineering and construction, (iii) equipment main-tenance, workshops, traffic control and statisties, and (iv) civil engineer-ing and transport services. The RNTP field organization which comprises13 subdivisions, is responsible for maintenance of the classified network(Table 3). These subdivisions were grouped into three geographical divisions,but, in an effort to strengthen headquarters' control over field operations,the area divisions were integrated into the headquarters organization in1969.

3.05 RNTP personnel number about 1,450 including labor. The head-quarters supervisory staff is reinforced by ten French engineers providedby FAC. There are only eight trained Congolese engineers and technicalsupervisors. FAC intends to maintain its present technical assistanceuntil sufficient qualified Congolese staff are available. Although engi-neers are presently trained abroad, mostly in France, the lack of qualified

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staff at all levels is likely to remain a problem for a number of years.This lack is especially evident in field operations, where there is ashortage of qualified mechanics and equipment operators. BCEOM is study-ing this problem under Engineering Credit S-6 COB (para 3.08).

D. Finance

3.06 The RNTP budget is established as a separate account within theTreasury under the authority of the Director General of the RNTP and ofthe Minister of Finance. RNTP sources of revenue are (i) contributionsfrom the Government budget (representing about one-third); (ii) a RoadFund fed by allocations from a special tax on fuel and lubricants (abouthalf); (iii) RNTP's commercial ventures (about one-tenth); and (iv) inter-mittent contributions from the National Investment Budget for bettermentworks and equipment purchases.

3.07 RNTP's annual expenditures (Table 4), including current operat-ing expenditures, investments, and debt service, have increased steadilysince its establishment, and in 1968 totalled CFAF 972 million (US$3.5million equivalent). An estimated 60% of RNTP's expenditures have beenfor maintenance and betterment of the classified highway network. Nethighway maintenance expenditures, excluding equipment depreciation, haveaveraged about CFAF 70,000/km (US$254/km) over the period 1967-1969, whichappears adequate in view of the low average traffic.

E. Maintenance

3.08 When RNTP was established in 1965, it undertook the mechaniza-tion of its highway maintenance operations; the equipment fleet has beencontinuously strengthened and has doubled in size in the last five years.?ne present replacement value of the fleet is estimated at about US$6nillion equivalent; if efficiently operated and maintained, it should besufficient to ensure adequate maintenance of the highway network. Despiteadequate maintenance allocations and the growth of the equipment fleet,the condition of the network has not significantly improved. The reasonsfor this disappointing situation are several: inefficient maintenance pro-cedures, and poorly equipped and inadequately staffed subdivision workshop.BCEOM is presently studying these problems under the Highway EngineeringCredit (Credit S-6 COB). They will formulate a comprehensive program forthe reorganization and management of maintenance operations and workshops,and for the recruitment and training of RNTP personnel. During negotiations,the Government agreed that, upon receipt of the above highway maintenancestudy. it will consult with the Association with a view to agreeing upona schedule for implementing a program to improve the organization, planningand execution of road maintenance operations.

F. Engineering and Construction

3.09 Highway engineering is usually carried out by consultants. TheRNTP operates a well-equipped soil testing laboratory, the LaboratoireNational d'Etudes des Travaux Publics (LNETP), with the technical assistance

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of a well-known French institute for road engineering, the Centre Experi-mental de Recherches et d'Etudes du Batiment et des Travaux Publics (CEBT?).Highway construction is generallv carried out by foreign contractors.Because the RNTP does not have enough qualified staff to supervise largerworks, the proposed project includes consultants' services for con-struction supervision.

G. Planning and Investment

3.10 The Government recognizes that high priority must be given to theupgrading, betterment and maintenance of the existing network. While bet-terment and maintenance have been financed from the Road Fund, upgradingand major equipment purchases have been largelv financed through externalaid (Table 5). From 1964 to 1968, FED contributions to highway investmentstotalled about US$4.8 million equivalent and provided for the bituminoussurfacing of roads near Brazzaville and Pointe Noire, for upgrading ofroads and bridge construction in the Niari Valley and the Sangha region,and for equipment purchases. FAC con-Iributed US$1 million equivalent fortechnical assistance, highway studies, and equipment. As mentioned ear-lier (para 1.01), the Bank contributed US$185,000 for road studies. Totalcapital investments in the highway infrastructure, including external andlocal financing, averaged about CFAF 380 million annually (US$1.4 mil'lionequivalent) over the period 1964-1968. Purchases of highway maintenanceequipment totalled CFAF 1,156 million (US$4.2 million equivalent), i.e.about CFAF 230 million (US$830,000) annually.

3.11 The proposed Five-Year Development Plan (1970-1974) places greatemphasis on the upgrading of the two trunk roads, Pointe Noire - Brazza-ville (574 km) and Brazzaville - Ouesso (887 km). The high priority at-tached to these projects reflects the Government's desire to improve com-munications and to promote administrative cohesion between Congo's isolatedand ethnically diverse regions. The present project for the upgrading ofthe first section of the Pointe Noire - Brazzaville road will be the firstoperation to be undertaken under the proposed Plan.

4. THE PROJECT

A. Description

4.01 The project consists of:

(i) the improvement of 34.1 kilometers of road from Pointe Noireto Makola; and

(ii) consultants' services for the supervision of construction.

Pointe Noire - Makola Road (see Map)

4.02 The Pointe Noire - Makola road (34.1 km), linking the CPC potashmine and refining plant with the port of Pointe Noire, is one of the most

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heavily travelled sections of Congo's main road network. The existing roadis inadequate for present traffic, which ranges between 290-340 vehiclesper day including about 80 heavy trucks and trailers. The first 4.6 kmfrom Pointe Noire were paved 15 years ago but have not been properly main-tained and paving is showing signs of fatigue. The remaining section hasbeen given a gravel surface, but heavy rains have washed most of it away.The terrain is sandy and friable; extensive erosion of ditches have, overtime, become deep trenches indenting the roadway.

4.03 Under the ongoing Engineering Credit S-6 COB, BCEOM conducted afeasibilitv study of this road, including an economic analysis of the de-sign standards utilized in the preliminary engineering carried out by RNTP(Table 6). The standards were found to be technically sound and vell-adapted to the terrain and to the volume and composition of traffic. Thepavement width of 7 m is required because of the substantial number ofheavy trucks, including timber trucks, with an overall width of more than3 m. The shoulder width of 2 m will lessen the effects of erosion.

Supervision of Construction

4.04 Consultants will be engaged for construction supervision. Theconsultants' team will consist of one highway construction engineer andone soil technician. They will be stationed in Pointe Noire. The LNETPwill set up a field laboratory in Pointe Noire to conduct technîcal testsunder the responsibility of the consultants.

B. Cost Estimates and Financing

4.05 Cost estimates for the project are summarized below. IDA willfinance the foreign component of the project costs. During negotiations,the Government confirmed that it will bear the local costs of the project.

Cost Estimates

CFAF (millions) US$(Thousands) % IDALocal* Foreign Total Local* Foreign Total Contribution

Improvement of thePointe Noire-MakolaRoad (34.1 km) 125 300 425 450 1,080 1,530 70%

Consultants' Services 10 45 55 36 162 198 80%

Contingencies 21 57 78 74 208 282

Total 156 402 558 560 1 450 2,010

say, US$1.5 million 75%

* Local component includes taxes, amounting to 15% of total cost.

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4.06 Cost estimates for road construction are based on BCEOM's de-tailed engineering and reflect prices recently obtained through competi-tive bidding for highway works of similar scope in Congo. Contingenciesinclude 10% for physical overruns and 5% for price escalation. The esti-mate of the respective percentages of foreign and local components of theconstruction cost is based on a detailed analysis taking into accountexperience in neighboring countries.

4.07 The cost estimates for consultants' services for supervisionare based on the man-month requirements assuming a 20-month constructionperiod and of the cost of local transport and laboratory tests. The con-sultants costs include about CFAF 7.15 million (USS26,000 aquivalent) tocover subsistence allowances for fc-eign experts during their stay in theCongo. Although disbursed in CFAF, these outlavs will mainly be used forthe purchase of consumer goods with a high percentage of foreign exchangeand hence have been included in the IDA contribution. Contingencies (10%)cover possible time overruns and price escalation. The foreign componentof consultants services (80%). including subsistence allowances, is basedon the consultants' contract under the Engineering Credit.

4.08 Disbursement will be made on the basis of: (i) 70% of thecontractor invoices for the execution of construction works, and (ii)actual foreign exchange costs and subsistence allowances identified inthe consultants' contract for construction supervision. Assuming thatthe Credit would be signed by June 1970, IDA disbursements will be asfollows:

Calendar Year1970 1971 1972 Total

Forecast IDA disbursements(US$ million equivalent) 0.1 0.9 0.5 1.5

C. Execution

4.09 The RNTP will be responsible for executing the project and iscapable of doing so. BCEOM will assist the Government in the prequalifi-cation and bidding. During negotiations, the Government confirmed thatbids will be awarded in accordance with Bank/IDA guidelines.

4.10 During negotiations, the Government confirmed its intention toentrust BCEOM with the supervision of construction and to employ them onterms and conditions satisfactory to the Association. The signature of aconsultants' contract for construction supervision is a condition for ef-fectiveness of the credit.

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5. ECONOMIC EVALUATION

A. General

5.01 The Pointe Noîre - Makola road (34.1 km) is part of the maintrunk road from Pointe Noire to Brazzaville and an important link in thetransport network of the Congo. It joins the rich agricultural area ofthe Lower Mayombe to the port city of Pointe Noire which, with its rapidlyincreasing population (about 100,000 at present), is an important consump-tion center. The road also carries timber traffic of about 25,000 tonsper year. Perhaps most importantly, the road serves the CPC potash mineand refinery at St. Paul. While the potash production of the mine istransported to the port of Pointe Noire by the CFCO railway, the activi-ties of CPC have generated considerable road traffic as well. A certainportion of CPC's supplies such as spare parts, small equîpment, fuel andlubricants are transported by road. Also, there is regular commutertraffic between Pointe Noire and the mine. Finally, the townsite ofMakola, constructed by CPC for its workers, is expected to develop intoa community of about 6-8,000 people and is another important source ofroad traffic.

B. Traffic

5.02 Since the commencement of mining operations at St. Paul in May1969, traffic on the project road has ranged between 290-340 vpd, ofwhich about 80 are heavy trucks and trailers. In estimating future traf-fic volumes, a distinction has been made between traffic directly connec-ted with CPC's operations and other traffic. According to company of-ficials, CPC-generated road traffic (i.e. mainly commuter traffic and-^ansport of small supplies for the mine) amounting to about 100 vpd, isfairly independent of the mine's output and has, therefore, been assumedto remain constant during the period considered in the economic analysis.Timber traffic, about 10 trucks or truck-trailers per day at present, hasalso been assumed to remain constant since no increase in timber produc-tion is foreseen in the area served by the road. Other traffic is ex-pected to grow at about 6% per annum for the first ten years of the eco-nomic life of the project and at about 5% per annum thereafter. The re-sulting average growth rate of total traffic would thus be above 4%.

C. Economic Analysis

5.03 For the purpose of the economic analysis, two sections of thePointe Noire - Makola road have been distinguished. Section I (4.6 km)is now paved but would be reconstructed under the project. Section II(29.5 km) is presently an earth and gravel road which would be upgradedto a paved road.

5.04 The first section of 4.6 km near Pointe Noire is the mostheavily travelled part of the project road with an ADT of 340 vehicles.It was paved 15 years ago but is now showing signs of fatigue and beginning

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to deteriorate. Technical studies by consultants indicate that, even withroutine maintenance, the road will break up soon, and that total reconstruc-tion will be required by 1976. Reconstruction now in the proposed projectwould be less expensive for two reasons:

(i) reconstruction at a later stage of deterioration wouldhave to include the costs of replacing the sub-base; and

(ii) reconstructing a 4.6 km section as a separate project ata later date would be a too small-scale operation tojustify mobilizing a foreign contractor and would, there-fore, not be suitable for international competitive bid-ding. Unit prices would thus be higher than estimatedfor the present project.

In total, it is estimated that reconstruction in 1976 would be about 40%more costly than if undertaken as part of the proposed project. If thefirst section is not reconstructed now and maintenance continues as inthe past, the progressive deterioration of the pavement would lead torapidly increasing vehicle operating costs.

5.05 It is justified to keep this section, which is an integral partof the whole project road, as a paved road since the "do-nothing" alterna-tive, i.e. permitting its progressive downgrading, would be uneconomic.The optimum timing for reconstruction was determined by comparing flowsof total transport costs under the two alternative solutions, i.e. recon-struction in 1971 under the project or delaying reconstruction until 1976.Table 7 shows that the present value of the total transport cost bill, dis-counted at a rate of 10%, is about 13% lower if reconstruction is carriedout in 1971. Even if total reconstruction were not necessary until 1978,the present value of the transport cost bill would still be 9% lower withimmediate reconstruction. If this small section were regarded as a separateproject, the benefits from avoided increases in vehicle operating and roadreconstruction costs would yield a return of about 22%.

-5.06 The remaining 29.5 km section terminating at Makola is a poorearth/gravel road that carries an ADT of about 290 vehicles. The benefitsfrom paving the road would consist of savings in vehicle operating costs,estimated at between 23% and 33% depending upon the type of vehicle (Table8), and savings in maintenance costs.

5.07 Benefits have been calculated for a period of 20 years, theestimated economic life of the project. Economic costs are based on con-sultants' estimates for a 20-month construction period. Based on the aboveassumptions, details of which are given in Table 9, the economic rate ofreturn on paving this section would be about 17%. A 10% lower growth rateof traffic (from 4% to 3.6%) would not significantly affect the rate ofreturn. A 15% increase in project costs would reduce the rate of returnto 14% which is still satisfactory.

- il -

5.08 Thus, the reconstruction and improvement of the Pointe Noire -Makola road is economically sound, estimated to yield a rate of return ofover 17% for the project as a whole.

6. RECOMMENDATIONS

6.01 During negotiations, assurances or confirmation were obtained onthe following major points:

(a) upon receipt of the highway maintenance study being carriedout by BCEOM, the Government vill consult with the Associationwith a view to agreeing upon a schedule for implementing aprogram to improve the organization, planning and execution ofroad maintenance operations (para 3.08); and

(b) BCEOM will be retained for construction supervision and willbe employed on terms and conditions satisfactory to the As-sociation (para 4.10).

6.02 The project is economically sound, and provides a suitable basisfor an IDA Credit of US$1.5 million equivalent. A condition for the ef-fectiveness of the credit is the signing of a contract with the consultantsfor construction supervision (para 4.10).

April 20, 1970

Table 1

REPUBLIC CF CONGO

HIGHWA.Y IITIRO0VM!T PROJECT

Highway Network 1969(km)

Total Technical CharacteristicsA. Classified Roads Length Paved Laterite Earth Trac'k

1. National Roads

RN1 - Pointe Noire-Brazzaville 574 91 281 190 12RN2 - BrazzaviUe-Ouesso 887 75 68 133 611RN3 - Dolisie-Gabon border 237 2 235 -RN4 - Pointe Noire-Cabinda 36 36 - -RN5 - Pointe Noire-BasKouilou-Gabon 178 47 - - 131RN6 - PK40 RN1-Sounda 63 - 63 - -

Subtotal 1,975 251 647 323 754

2. Prefectoral Roads

Western Region (Kouilou-Niari) 1,393 - 127 841 !.25Central Region (Brazzaville) 541 84 - 95 36?Northern Region (Sangha) 2,285 - 356 467 1 (62

Subtotal h,219 84 483 1,403 2,249

3. Local Roads

Western Region (Kouilou-Niari) 961 - - 107 p,54Central Region (Brazzaville) 432 - - - L32Northern Region (Sangha) 780 _--

Subtotal 2,173 - - 107 2,066

TOTAL Classified Roads 8,367 335 1,130 1,833 5,069

B. Unclassified Tracks about 2,500

TOTAL Highway Network (rounded) 10,850

Source: RNTP, November 1969

February 10, 1970

Table 2

REPUBT.IC 0F CONGO

HIGHWAY IiMPRO1JEIMENT PROJECT

Comparison of Highway Densities and of Vehicle Fleets1969

Road Density Vehicle Densitykm of roads kin of roads per vehicles vehicles per

Counr per lO00 km2 1i000 inhabitants per km road 1,000 inhab

(1) (2) (1) (2) -(1)

Congo (B) 32 4.5 11.5 1.6 0.7 8

C-IAR 33 6.3 14 2.6 o.4 5

Gabcn 20 9 il 5 1.7 19

Crneroon 44 29 4 2.8 1.5 6

France 1100 1100 14.3 14.3 17 250

(1) roads of aIl categories

(2) all-weather roads only

Sources: RNTP, November 1969IBRD reports

February 10, 1970

Table 3

REPUBI C OF CONGO

HIGHWAY IMIPR0V3ENT PROJECT

Traffic Levels on Classified Highway Network 1968

1/ 2/Ar.nual Traffic Level Southern networki Northern network Total

% of Total %oToa of TotaaRoads Network Roads Network Roads Np-.teork;;r (% (km) - (km71)- -

Exceeding 150,000 tons 230 3 - - 230 3

From 50,000 to 150,000 tons 255 3 - - 255 3

Fromn 10,000 to 50,000 tons 680 8 100 1 780 9

From 5,000 to 10,000 tons 400 5 350 4 750 9

From 1,000 to 5,000 tons 800 10 730 9 1530 )9

Less than 1,000 tons 2140 25 2685 32 4825 51

TOTAL: 4505 54 3865 46 8370 Ir/C

l/ The Southern network includes the roads in the coastal area, in the Niari Valleyand around Brazzaville.

2/ Thie Northern netuTork includes the roads in the Cuvette and Sangha regions.

Source: BCEOM Inception Report on Highway Maintenance Study, December 1969.

February 10, 1970

Table 94

REPUBLIC OF CONGO

HIGI^JAY DIPIRRVEMEDT PROJECT

Annual HighT,Yay Expenditures1965-1968

1/------ (CFAF million)------A. RNTP's Budget Expenditures- 1965 1966 1967 1968

Salaries ..................................... 278 237 279 320Operating costs of equipment and supplies 239 312 297 308Repairs ....................... ...... ....... 32 12 50 35'AMministrative Overhaad ...... ................ 12 12 10 ,uInvestments: i) equipment . ... . ........ .... 192 121 161 s'.

ii) buildings ........ . . ...... 12 18 16 66iii) studies . ... 28 26 27 32

Debt services and miscellaneous . .. .... - 75 74 B 7

TOTAL ... 793 813 914 9:/2

Average armual increase over the period1965-1968 ..... . ...... ........ about 7%

B. Net Highway Maintenance Expenditures?/(excluding equipment depreciation)

i) total (CFAF million) .............. 493 505 585 593

ii) average expenditures per km ofclassified road (8365 km)in CFAF per km ....... ............ 59,000 60,000 70,000 71,0COin US$ equivalent per km ......... 214 218 254 258

Average annual increase over theperiod 1965-1968 ......... ...... about 6%

Sources: 1/ RNTP Annual Repoits 1967 and 1968

2/ Mission estimates, November 1969

February 27, 1970

Table 5

REPUBLIC OF CONGO

HIGHWAY IDPROV71 'iET PROJECT

Capital Expenditures for Hi ways 1964-1.968(CFAF million)

A. HIGHWAY CONSTRUCTION AND UPGRADING

1. Financial Source 1964 1965 1966 1967 1968 Total

FED 595 427 29 116 12 1,179FAC 12 10 21 5 7 55IBRD-/ - - - 27 16 43

External Aid 607 437 50 148 35 1,277(67.5%)

Congo (Road Fund) 212 89 104 122 89 616(32.5%)

Total 819 526 154 270 124 1,893 (1.00%)

2. Nature of Expenditure

Highway Studies 128 79 58 102 65 432Highway Construction 691 447 96 168 59 1,461

Total 819 526 154 270 124 1,893

B. HIGHMAY MAINTENANCE EQUIPMENT

Financial Source

FED - - - 154 154FAC 60 150 - - - 210Congo 51 192 306 161 82 792

Total Equipment Purchases 111 342 306 161 236 1,156

1/ IBRD Technical Assistance Grant of US$185,000 for the feasibilitystudy of the Sibiti-Zanaga Road.

Source: RNTP, November 1969

Febriary 27, 1970

Table 6

REPUBTJIC OF CONGO

HIGSIRAY EP9XROVEI`3N±T PROJECT

Design Standards

Upgrading of Pointe Noire-Makola Road (34.1o km)

Design speed 100 km per hour

Minimum radius of horizontal curves 500 m

Maximum grades

- to Pointe Noire 6 %

- from Pointe Noire 8 %

Platform width 11 m

Pavement width 7 m

Shoulder width 2 m

Pavement design axle load 13 t

Source: BCEOM's draft report on "Pointe Noire-Bondi Road FeasibilityStudy," October 1969.

February 10, 1970

Table 7REPUBLIC 0F CONGO

HIGN'! ..Y I:dR0VS il PROJECT

F1.7w of Total Transport Costs - Reconstruction of Section I(CFAF '000)

a) Reconstruction in 1971

Cost of Cost of Vehicle Total Present ValueReconstruction Maintenance Operating Costs T at 10%

1971 38-,100 . 1,,535 56,638 56,6381972 276 19,260 19,536 17,7601973 2.76 20,002 20,278 16,7591974 276 20,762 21,038 15,8C61975 276 21,504 21,780 14,8761976 276 22,431 22,707 14 099

Subtotal: 1 ,9Zg3

1977 6,1440 23,173 29,613 16,7151978 276 24,258 24,534 12,590

Total: 15L2i'

b) Reconstruction in 1976

1971 276 18,538 18,814 18,8141972 276 21,133 21,409 19,4631973 276 24,099 24,375 20,1451974 276 27,436 27,712 20,8201975 276 31,329 31,605 21,5871976 55,000 35,908 90,908 56,447

Total: 157,276

c) Reconstruction in 1978

1971 276 18,538 18,814 18,8141972 276 20,577 20,853 18,95(1973 276 22,802 23,078 19,C731974 276 25,397 25,673 19,2881975 276 28,178 28,545 19,4971976 276 31,329 31,605 19,6241977 276 34,851 35,127 19,8281978 55,000 38,848 93,848 48,159

Total: l837,-2

Sources: - BCEOM's draft report on Pointe Noire-Bondi RoadFeasibility Study, October 1969.

- Mission estimates, November 1969.

February 27, 1970

Table 8

REPUBLIC 0? rO0UGO

HIGH,AY IMPROV&;IENT PROJECT

Estimated Vehicle Operating Costs on Project Road(in CFAF per km, net of taxes and dutiesJ

Type of Vehicle Unpaved Paved Savings

Passenger cars 30 23 23%

Pick-ups 32 24 25%

Trucks 66 44 33%

Buses 37 26 30

Trailers 132 88 33%

Sources: - BCEOM's draft report on Pointe Noire-Bondi RoadFeasibility St-'dy, October 1969.

- Mission estimates, November 1969.

February 10, 1970

Table 9

REPUBLIC OF CONGO

HIGW'AY IMPROVEMENT PROJECT

Economic Analysis of Section II

1. Construction Costs: CFAF 402.8 million including cost of studies,supervision,_physical contin-gencies (10%); excluding taxes.

2. Maintenance Costs

(a) Paved road: CFAF 60,000 per km for annual routinemaintenance

CFAF 1,400,000 per km every six years forseal-coating.

(b) Gravel road: Annual maintenance costs are estimated as follows:

CH = (90,000 + 1,000 x ADT) CFAF per km

3. Savings in Vehicle Operating Costs: See Table 8, first-year savings (1972)

CFAF 43.9 million, growing at an average rateof 4.3%/annum over 20-yearperiod.

Sources: -BCEOM draft report on Pointe Noire-Bondi roadFeasibility Study, October 1969.

-Mission estimates, November 1969.

FebruarylO, 1970

REPUBLIC OF THE CONGO (BRAZZAVILLE)HIGHWAY CONSTRUCTION PROJECT

HIGHWAY ADMINISTRATIONR.N.T.P

(REGIE NATIONALE DES TRAVAUX PUBLICS)ORGANIZATION CHART

MINISTER OF PUBLICWORKS AND TRANSPORT

BOARD OF DIRECTORS

S E A D Q U|A R T E R S

DIRECTOR GENERAL

CENTRAL SPECIAL OPERATIONSADMINISTRATION AND (TRANSPORT, CIVILACCOUNTING SERVICE WORKS CONTRACTING)

EQUIPMENT, CENTRAL CENTRAL TECHNICALWORKSHOP, ANDCETATCNCATRAFFIC SERVICE SERVICE

EQUIPMENT FIELD L.N.E.T,PINSPECTION NATIONAL LABORATORY

OF PUBLIC WORKS

FIELD ORGANIZATION

SUBDIVISIONS

POINTE NOIRE BRAZZAVILLE SEMBEDOLISIE GAMBOMA OUESSOMOSSENDJO DJAMBALA IMPFONDOSIBITI KINDAMBA MAKOUAMADINGOU* KINKALA** BOUNDJI

* To be estab1ised in 1970 IBRD - 4198(R)Temporcrily established in Brazzaville

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NOIR I .. NOM a Bo

REPUBLtC OF CONGO (BRAZZAiVILLE) ' tH

HIGHWAY IMPROVEMENT PROJECT SOCoOcO.Jbng r e oceoo

MlGcwAOY I¢PRCOVEMEN1 Pl0OECT HIGHWAY NPWORK AND TRANSPCORTATON S0S0EM

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FEBRUARY 1970 MURD - 2796