Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized
ff
THEWORLD
BANK
POLICYPLANNING
ANDRESEARCH
STAFF
Intrastucture and UrbanDevelopmentDeparment
ReportINU0 OR Z
FY89 TRANSPORT SECTOR REVIEW
TransportDivision
Public Disclosure Authorized
d'657
November1989
GeneralOperationalReview
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FY89 Transport Sector Review
-The Year at a Glance-
/
Lending:
21 dedicated transport projects and 26
presented
projects with transport components
to Board; 16 projects at advanced stage of
appraisal; 35 projects identified and
documented in IPBI EPS; 10 out of 27 SALsl
SACs with transport content.
V Country Economic and Sector Work:
41 out of 68 completed country economic
reports address inter alia transport sector
related matters; 49 tasks in transport sector
work were managed of which 26 were completed.
V Portfolio Management:
222 transport
/
projects
were under supervision.
Audits and Performance Reviews:
28 tasks
were accomplished.
V Research:
13 reports
were published.
V1 Training:
workshops and 5 external seminars
46 in-house
dealing with transport matters were conducted
for Bank staff. 16 transport sector management
courses were carried out in developing countries.
I
Staffing:
136 staff of different professional categories
were involved in transport related sector and
lending work, project supervision, auditing and
training.
FY89 TRANSPORT SECTOR REVIEW
Table of Contents
Page
I.
SUMMARY AND RECOMMENDATIONS..........
.......................
I
Il. SECTOR ACTIVITIES DURING FY89
A.
B.
C.
D.
E.
F.
Lending Operations ...................................
8
Country Economic and Sector Work .....................
14
PortfolioManagement
.................................
17
Audits and PerformanceReviews
........................
18
.
19
Research ..............................
Training ...........................
21
III. TREATMENT OF SELECTED TRANSPORTSECTOR ISSUES
A. Transport Pricing and Fiscal Management
..............
23
B. Comuercial and Operational-Management
of Transport
Enterprises ............................
.
26
C. Management and Maintenance of Highways
...............
28
D. EnvironmentalConcerns ...............................
30
E. Trade Logistics
Management ...
........................
30
IV.
TRANSPORTSECTORLENDING: THE EXPERIENCEWITH HIGHWAYS
A. The Experience Record ....................
................
B. Suggestionsfor Improving Sector Lending ........
V.
STAFF RESOURCES IN TRANSPORT ..............
32
40
...............
44
ANNEXESs
Table 1 - FY89 Dedicated Transport Lending Operations
..........
48
Table 2 - Transport Related Lending OperationsFY90-93.........
49
58
Table 3 - FY89 Lending Operationswith TransportComponents ....
............
.........
59
Table 4 - FY89 Transport Sector Work
Case Studies of Transport Sector Lending ..........
.............
61
PY89 nASPORT SfCTOZREZYI
I. SIMOY PD
An
C0IU3DA?tNS
A. Leandina
Activities
1.01
The Bank's transport sector activities
during FY89 point to a
continuing trend towards supporting sector development and improving the
management of transport
services and infrastructure
in borrowing countries through lending operations which are based on system-wide approaches.The orientation
of theselendingoperationsreflectsa heightened
awarenesswithin the Bank of the rapidly changing environmentsin which
the transport systems of developing countries have to perform.Steadily
progressing integration
of global trade networks requiring efficient
freight distribution
systems, and growing demand for mobility of their
diverse populations confront the governments of these countries with the need for major reforms of national transport services and upgrading of
transport
infrastructure.
The pervasive problems of outmoded regulations,
inadequate institutional
arrangements, inefficient
management practices
and constraints
on private sector initiatives
represent impediments to
better performance of national transport systemJ. These problems usually
transcend all-modes, and experience shows that it is difficult
to correct
such shortcomings
by concentrating
on one selectedcomponentof a transport system.Bank sectorstaffthereforerightfullystartedto conclude
that requiredimprovements in the provisionof transportservicesin
borrowing countries can be best achieved by addressingsystem-wide
shortcomings in a coordinated manner,involvingsectorpolicy,strategyand
management aspects.
1.02
The result is that an increasing number of annual transport
lendingoperationsare basedon approaches
which entaila broad sectoral
focus and integrate
the treatment of issues in regulation and management
which transcendall modes.Thesenew-styleprojectstypicallyencompass
several,and oftenall transport
modes in a country,which is a significant trend away frommodallyorientedtransportprojects-- the dominant
lending instrument of past years. While this trend started in the early
1980s,the FY89 cohortof transportprojectsappearsto representan even
more decisivedeparturefrommodal lending.Almostone thirdof the
transportprojectspresentedto the Boardin FY89 reflectedsuchapproach,up from fivepercentin FY88, and less in precedingfiscalyears.
A look at the proposed lending pipeline
through FY93 reveals that the
proportionof broadlybasedand multi-modally
orientedtransportprojects
is expected to increase further, which are thus likely to become the key
lending instrument for sector support in the years ahead. The focus of
this year's Transport Sector Review thus is directed at the types of
-2-
and staffing
issuesolendingInstruments
lending across
of the trendto
implications
modes.
Altogether31 transportprojectswere appraisedduring the fis1.03
US$ 1,776.5millionin Bank
cal year,of which 21 projects-- co^iftting
loans and IDA cred'ts--were presentedto the Board.They includedeight
threeprojectseach in
highwayprojects,six sectorlendingoperations,
and one urban transportproject.Out of
for port and railwaydevelopment,
which becameeffectivein
the 27 structuraladjustmentlendingoperations
relatedto transportsectorreforms.In
FY89, 11 containedinitiatives
but including
26 other projectswith differentcore orientation
addition,
iniby
the
Bank.
The
transport
major transport components were approved
under these projects were taken in the contezts of general intiatives
improvement
urban infrastructure
development (11 projects),
frastructure
schemes(sixprojects),publicenterprisereform(sizprojects),trade
(oneprologisticsmanagement(twoprojects),and regionaldevelopment
ject).The proposedlendingpipelinethroughFY93 suggeststhat the
number of annual projects with transport components but intrinsically
different
core orientation
will steadily increase.
B. Lend.=
Intrumtg
and Procedue
1 04
The trend towards more encompassing and multimodal transport
lending approaches ..s pragmatic and is probably also more responsive to
the need to tackle the pervasive sector problems in a coordinated fashion. The advantageis that it provides for a more comprehensive involvement of the Bank in all aspects of transport managemeut and service delifor successful project implementation
very. However, the prerequisites
exceedthose for the modallyorientedlendingoperationsto a considerable extent.In most cases,severalline agencieswill be involved,and
which do not fall
reformneedswill typicallyalso encompassinitiatives
Thus a much more
within the domain of transport sector organizations.
comprehensive institutional
approach and substantial
consensus-building
is required.
lending apThe problems inherent in the now-style transport
1.05
proach affected the PY89 sector lending program. The 21 transport prorepresented only 50
jects which were processed through Board presentation
sector lending target. Much slippa_e occurred
percentof the initial
becauseconsensuswith the variousagenciesto be involvedin required
has also to
sectorreformscouldnot be reachedin time.Some explanation
be soughtin projectdesignand relatedprocessingby Bank staff.Quite
a more probinganalysisof the causesand effectsof system.
frequently,
and rebetterissuesorientation
inefficiencies
wouldhave facilitated
of the
sponsiveness
in projectdesign,basedon realisticassessments
and the institutional
of proposedinterventions,
politicalacceptability
capacitiesto complywith the iipliedactionprograms.
3~~~~~~~~~~
with imple1.06
This review includesan analysisof the experience
which were appraised during
menting transport sector lending operations,
previous fiscal years. Most of theseoperationsrepresenthighwaysubsecthat exoftenincludedreforminitiatives
tor loans, whichnevertheless
in the
-- particularly
tendedbeyondthe purview of highway authorities
Generally,theseprojects have
areas of regulationand fiacalmanagement.
been most successful at enhancing the Bank-country
dialogue regarding the
program,focussingon overallprojectselectionand design
investment
criteriaratherthan the intensiveanalysisof individualinvestments.
alsohave seen the benefitsof such an approacn,especially
Governments
of project fiof finance and planning, and the flexibility
ministries
nancing and accelerazed disbursements. However, the findings under th's
review point to several problem in project desigp and during project
Quite frequently the policy and
implementation which need attention.
institutional
reform agenda under these lending operations was too ambitious, not well understoodby the relevant government agencies,and commitmentto effectrequiredreformsturnedout to be elusive. The lesson
to be learned here is that broad-based sector reform programs should be
incrementally
instituted
through a series of support operations and in
in sectorlendSelectivity
absorptivecapacities.
line with governments'
ing objectives
is therefore called for. There were also a numberof implementation problems which have their roots in existing Bank rules. They
relate to procurement and implementation monitoring which have not responded adequately to the sector lending concept.
issue is the need to streamline coordination among
1.07
A potential
the various Bank work units that are pursuing transport sector improveapproaches, such as
ment needs in borrowing countries through different
and lendcountry economic and sector work, dedicated transport projects,
Ing for transport improvements under projects with other core orientation. The sectoractivitiesduringFY89point to the fact thatmore and
are takenby work units,otherthan the Inframore transportinitiatives
among
structure Divisions -- and with sometimes only limited consultation
of transportstaff.It is a good
work units and involvement
the different
seen as an essentialpreresign that improved transport is increasingly
in differentparts of the
quisitefor economicand socialdevelopment
Bank but caremust be takenthat conflicting
signalsare not given,and
that a consistentsectorsupportstrategyis followedwithinindividual
countries.
C. SectorStratesies
1.08
The instruments
for formulating
strategiesin supportof transport development and improving system performance in borrowing countries
during FY89 were economic and sector work, and applied research. Country
economic and transport sector work carried out during the fiscal year
included a considerable number of well managed tasks which were aimed at
providing a guiding framework for required reforms and transport system
IN and other PPR departments supadjustments in borrowing countries.
-4-
ported thee endeavors through corresponding research and the issuance of
In the area of environmental control.
especially
severalguidelines,
supportto regionalsector
INMs TransportDivisionprovidedsubstantial
noteworthyare the SSATPinitia_
work and londingefforts.Particularly
tivesby the TD In the Africaregionand the countrysurveysby different
for integraSODs in the EMENAregionaloffice.lowever,the opportunity
tion of country economic and sector work should be furtherexploited,as
systems become more
the macroeconomic linkages of national transport
pronounced. Compared with previous years, staff time spent in pursuit of
transportsectorwork reachedan all-timehigh in excessof 600 weeks,
but threetasks--sectoranalysesin China,the MaritimeSectorAssessand
ment for the proposedEnvironmental
Programfor the Mediterranean,
preparatory work for SSATP-- consumed more than 50 percent of the time
recorded as sector work.
1.09
Last year'sexperiencewith countryeconomicand sectorwork,
pointsto a set of key
and with the new-stylesectorlendingapproaches
transportissueswhich requirespecialattention.They includes
*
*
*
*
*
pricingand fiscal management;
enterprisereform;
in:..
:astructure
maintenance;
environmental
concerns;and
trade logisticsmanagement.
The need for guidancein dealingwith theseissueshas been recognized.
1n and the regionalTDs --particularly
in 'frica--have put this requirement high on their work agendas. Corresponding research was actively
pursued during FY89. As regards the pricing issue, it was found that cost
recovery is generally adequate in borrowing countries but there often
in the structureof tariffs.In the area of
exist seriousdistortions
of initiatives
enterprisereform,most strikingis the proliferation
with significant
worldwide--not alwayswell conceptualized-frequently
laborredundancyimplications.
Researchrelatedto tradelogisticsmanagementrevealedthat changingshipperpracticesand relatedrestructuring
in the the organization
of international
transportrequiresubstantial
adjustment in the provisionand managementof transportinfrastructure
Assessments of the environmental
and services in developing countries.
demonstratimpactof transportoperationsand infrastructure
development
ed the need for bettercriteriaregardingthe design,the construction
and services.Follow-up
and the provisionof transportinfrastructure
investigations
into the generaltopicof highwaymanagementand maintenance demonstrated
comonly notableimprovements,
exceptin someAfrican
countries.The experiencewith outsideseminarsand workshopswith regional transportmanagersduringFY89 pointsto theirhighutilityas an
Bank findingsand to fosterpolicydialogue.
instrument for disseminating
D. StaffResouVce
capacityin the Bank to deal
The need for improvedinstitutional
1.10
of transportsectoradjustment needs is
vith the increasing complexities
beyonddispute.Human resourcesare key to this.The Bank has presentlya
and
including65 technicalspecialists
sectorstaffof 136 professionals.
Thereare discerniband 23 financialanalysts.
engineers,48 economists,
le tendencies among regional work units to increase the proportion of
generalist staff -- mostly with economics background-- at the expense of
technical experts. Tn many cases engineer positions,
vacated through reThis trend calls
professionals.
tirement, are filled with non-technical
for caution, as the demand for engineering expertise will remain, and a
core of experienced Bank engineers should be retained despite the infor such tasks. There is a strong
creasing practice of hiring consultants
in the sector.
need to maintain the Bank's technical integrity
to enhance the
A greatchallengeis the absoluterequirement
1.11
Bank'sabilityfor effectively
dealingwith transportpolicyand management reforms. It is particularly
the efforts aimed at improving the management of transport
services and infrastructure,
which require sound
expertise. Such expertise should optimally be based on active involvement
in managing different
segments of the transport industries. gowever,
there are very few Bank staff members who have such a background. The
stop-gap solution is commonly to hire consultants.
But even in the consultantmarket such expertise is limited. Thus the Bank is held to remedy
this situationand to enhancethe'staffs'abilityto dealwith these
mattersmore effectively.
DuringFY89,INU and the TDs in the regional
officesarrangedfor a seriesof seminarsand workshopswhichwere aimed
at providing staff with insights into changing transport market environments,
E. Recammendations
1.12
Two importantquestionsarise fromthe FY89 TransportSector
Review.Firstly,one has to ask 'Whatshouldbe done in order to ensure
preparedto ventureinto substantially
more
that the Bank is technically
transport sector lending,as is proposed?'; and secondly, there is the
question of 'How should existing Bank rules relating to project design
and monitoringbe adjustedto bettermeet
and conditionality,
procurement
of transportsecfor successfulimplementation
the specialrequirements
tor lendingoperations?'.
1.13
The firstquestionimpliesa need to dealwith the issuesof
Bank sectorsupportstrategy
guidance,staffresourcesand a coordinated
for individualcountries.Concerningguidance,thereare the earlier
mentionedongoingeffortsin the regional TDs and INU'sTransportDivision.The key areas requiring attention
include pricing and fiscal mana*nd
gement,enterprisereform,managementof transportinfrastructure,
Of specialimportanceis also the role and
considerations.
environmental
function of transport in support of trade development.This assessmentis
in linewith the recamendationsof the SectorStrategyPaperfor Transportation,whichwas issuedin December1988.However,thereare only
availableto pursuerelatedresearch.It is
limitedbudgetallocations
fundsbe made availableto
thatmore substantial
thereforerecoumended
there is a need for regionalstratesupportthese efforts.Furthermore,
gies with regard to transport issues. The Africa and LAC TDs have made
guiding frameworks for transport
comendable progress in establishing
support operations in their respective regions. The Asia TD is planaing
an urban transport strategy for FY90.
Preparingtransportand otherBank staff for dealing with sector
1.14
is a need whichmust be givenhighest
lendingapproachesmore effectively
The training and workshops arranged during FY89 were instrumenoriority.
However,
tal in creating awareness of the changing market conditions.
and ways should
these efforts should be continued even more forcefully,
be considered to expose selected staff to modern transport manabement
secondments. Howin a more profound manner, such as shaLt-tin
practices
that the reIt
is.
rscommended
funds.
additional
ever, this will require
gional TDs, INU's Transport Division and Personnel draw up a concerted
and
includingorganizational
actionplan for transportstaffdevelopment,
As the core of technical staff shrinks, it is highfundingarrangements.
ly important that the regions coordinate their recruitment of such staff
of technical staff time between reand that there be more fungibility
gions.It is recommended that procedures be established whereby an engiexpertise can be used
neer or specialistin one region with a particular
in another region without undue bureaucratic
effort.
sector support efforts by
The issueof coordinating transport
1.15
differentwork units in the Bank has not been a seriousproblemto date,
but there is the danger thatconflictsmay ariseas more and more units
outsidethe sectordivisionspursuetransportrelatedmatters.Thiswill
by the countryteamswith support,
requiremore effectivediscussions
where necessaryby the TDs and INU.
Finally,thereis the questionof how existingBank ruleswhich
1.16
govern sector lending should be adjusted in light of the experience gainBased on the findings under this sector
ed with such lending operations.
review, following recommendations are offered:
* There is a need to control the tendency towards
and selectivity
overambitious reform objectives,
the issues to be treated is called for;
is the most effective
* Up-front conditionality
policy and institutional
achieving difficult
actions;
in
way of
reform
* Procurement guidelines for sector lending need to be
to
reviewed to ensure that they relate appropriately
sector lending objectives;
-7-
*
Monitoring measures and related Bsak documents need
to more adequatelyaderesssectorlendingapproaches; atd
*
The TDs shouldassessduringthe annualARIS exercisesprogressundersectorlending,in particular
focuson technicalqualityissues.
II. SECTR AC-2US
DURINGPY89
2.01
This chapterprovidesan overviewof Bank activities
during FY89
which were relatedto transportsectordevelopment
and managementin
borrowingcountries.
A totalof 26 work units and 136 specialiststaffin
the regional offices,
EDt, OEDand PPR were directlyinvolvedin these
activities.
A discussion
of selectedkey issues addressedby theseef.
forts
is given
in Chapter
III.
A. LeadingOeratis
2.02
A total of 31 transport projects were appraised during the fis.
cal year, of which 21 could be preserced to the Board. The cumulative
lending commitment under the approved projects amounted to US$ l,T67.S
million with IBRD loans representing
a share of 69 percent; the balance
were IDA credits.
Highway projects for China and India received a blend
of IBRD and IDA allocations.
For details see Table 1 in the
Dedicated transportlending--projectswith exclusivetreatmentAnnex.
of sector
issues--as a proportionof totalBank lendingdeclivedto 8.3 percentin
FY89, compared with 13.8 percent in the previousfiscalyear and an annual average of 12.7 percent during the first half of the ^980s. Most of
the decline occurred in Africa (61 percent), followed by Asia (31 percent) and EEMEA (9 percent).LAC sectorlendingincreasedslightlyover
the FY88 figure(Graph1). Considering
that42 dedicatedtransportlending operationswere scheduledto be processedthroughBoardpresentation
at the beginning of FY89,the questionariseswhy so much slippagehas
takenplace.Some slippagehappenedbecauseprojectappraisalstartedtoo
late to enableprocessingthroughBoardpresentation
duringFY89 (e.g.
Burundi-Transport
Sector,Chile-Roads
Sectortt, Colombia-Rural
Roads
SectorII, Mauritius-Highways
II, and Yugoslavia-Highway
SectorIII).
With otherprojectstherewere obviousproblemsof agreeingwith governments on proposedactionor reformagendas,as in the case of Congo-Roads
Rebabilitation,
Costa Rica-Transport
Sector,Nozambique-Transport
Rehabilitation,
and Sudan-Highway Rehabilitation.
The Jiangsu Provincial Transport Projectin Chinawas delayedfor otherunforeseenreasons.
2.03
As can be inferred from Graph 2, there has been a substantial
change in the modal orientation
of dedicated transport lending operations.This trend startedin the early1980sbut FY89 appearsto represent an evenmore decisive departure from predominantly modalprojects
-- with highway projects usually taking the lion's share-- to lending
operations with broader sectoral focus, covering several modes. The Bolivia-Export Corridors, Chad-Transport SECAL, Ethiopia-Transport,
and Uruguay-Transport I projects are typical examples of this new type of sector
lending operation.
The view is rightfully
taken that required Improvements in the provision of transport services in borrowing countrie.
be better achieved by addressing system-wide shortcomings in a coordi-zan
Q~~~~~~RAPH
- -
Lendingfor DedicatedTransport Projects
in Relationto Total Bank Lending
Uat ba
as-
M
Tot knkL.ndnigla
TmmowtLldlo
S Tansoot ofota
I
'
-
-
1
=
I
0
_
-:
t
Lln4g
hldi"
.~0
.
400-
0-
-
-LAO
DedicaTd Transport Lnndin1
Olstributlon
Regkm
~
0~'
1--
.A."-
ot
,|ft FV
L
Tot an199
AS%
1366
ITRO" 39o
ILAO
|o
_~~~
z~~~~~~~
EMENA
U2
83
a
4
6U80
2dn 404 10 145
1094
132 M
I7
6
66
89 6
227 146. 16244
I M 1471
68
910
17
21|12
3
9 16 t1O 2.
2" 224
01 62 141UI24
042' 447 Z11
259712.9 1498 146 14.0 02.17
IOU,|| 19a93|
2
129
6|
2Q
-
P
2
Modal ristributlon of Lending
(Dedlcad Transport Projects)
*Aott
Numberof LeudhigOpeatIons
as
_
-
-
_
10
84
of
5?
as
69
so
Fials Yea
-
-
Raws
Utba TOtWst
C
Olw
Modal Dbstributionof Lendig
(Oedicated
Tansport
PojWt)
204-
N
o
SO
a
FIsl Year
X
XUmOe
iSwy
tU
U Ct
mm
n~~~~~~~~~u,.,.
Vram Waabwt ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
055ev~~~~~~~~~~~
nated fashion, involving sector policy, strategy and maagement aspects.
Lookingat the lending pipeline through r!92 (Graph 2), it is evident
that broadly based transport sector projects will increase as the domiwhile the numberof annualhighwayprojecuswill
nant lendinginstrument,
furtherdeclineas a proportionof totaltransportlending.Dedicated
lendingfor ports and railwayswill continueto hold a steadyshareof 3
stable
to 5 projectsa year.Noteworthyis the emergenceof a relatively
urban transportprojectsper year from
programof 2 to 3 free-standing
FY90 onard. Table 2 in the Annexprovidesan overviewof the proposed
transport related lending operations in the four regional offices between
FY90 and FY93.
In Chapter IV, a reviewof the Bank'sexperienceto datewith
2.04
transportsector lending -- mainly highway sub-sector lending-- is presented. This reviewsuggeststhat the outcomehas been generallysatisfactory but also that further refinement to the lending instrument would
since the experience with broader sector lending
especially
be desirable,
is still limited. While the trend towards transport sector lending repreresents a sensible development in addressing policy and institutional
project
for successful
the prerequisites
forms in borrowing countries,
exceedthosefor the modallyoriented lending operations
implementation
extent.In most cases,severalline agencieswill be
to a considerable
involved,and reformneedswill typicallyalso encompassinitiatives
which do not fallwithinthe domainof transportsectororganizations.
approach and substantial
Thus a much more comprehensive institutional
will be required. The slippage of some sector lending
consensus-building
operationsin FY89 attests to this observation (e.g. Costa Rica-Transport
Sector).The key problemwas the need to Involveseveralllneagencies.
and
likeministriesof commerce,financeand labQr,in conceptualizing
In addition,sigdesigningspecificprojectsand relatedinterventions.
nificantexpertisewill be necessarysmongBank staffin the areas of
legislalabororganization,
management,
transportserviceand enterprise
tive reform and innovative financing arrangements. This demand for experpronounced in the Africa and EMENAregions, given
tisewill be especially
plansfor multimodaltransportlending.
theirsignificant
duringthe fiscalyear
and noteworthydevelopment
An interesting
2.05
which
numberof projectswith transportcomponents
was the increasing
Diviwere prepared by Bankwork units,otherthan the Infrastructure
not
sions. During FY89 a total of 26 projectswith transportcomponents,
prepared under the auspices of sectorstaff,went to the Board (Table3
in the Annex), up from 12 projects in FY88. A review of proposed Bank
lending through PY93 reveals a growing trend towards addressing transport
diffewhich have a predominantly
sectorissues underlendingoperations
urbaninfraincluding(in orderof importance):
rent core orientation,
development,
structure,publicenterprisereform,generalinfrastructure
3). In
(Graph
development
rural/regional
and
management,
logistics
trade
addition,11 out of 27 SALISACsthatwere approvedby the Board included
provisionsfor reformin nationaltransportsystems to varying degrees.
of the commonlyperceived
providea clearindication
Thesedevelopments
importanceof effectivetransportfor economicgrowthand the deliveryof
socialservicesin developingcountries.
-12-
S
~~~~~~GRAPH3
Trends In Transport RelatedLending
ot
*f Poieo
Num
100-
60-
40-
W. Transp.Componnt
|DedleatdTranap.
12
38St
26
21
8
29
4
Context of TransportInitiatives
(Projects of different Orientation)
20_
15
Numbi of Lendino Opfations
j1j
--
0
68
Inratr.
m Trad
89
{(w)
LogiatIo
9
091
plumeYear
-
Urba Ift Wrwt t
t
Rual O.M.
0
PuIL twpr.
MUdtfSft%r
93
Rot.
-
MTg9Selected
Ledini
13 -
Ogerattios
with ?ransgort
Transuort
Comnonents
Comoonents
Project
BANGLADESE
SecondFloodRehabilitation
BURUNDI
SecondUrbanDevelopment
CH
MediumSize Cities
*
rehabilitation
of roads,bridges
and culverts;
replacement of tugboats,and hydrographic
equipment.
* upgradingof urban streetsin five
secondary cities.
* urban streetconstruction5
traffic
engineeringand managementmeas-
ures; reformsof publictransport
pricing.
GAMBIA
*
management improvements for public
enterprises
(ports,air transport,
and bus services).
Development
*
shipping deregulation.
III
*
transportpricing reforms;private
sector promotion in the provision
of transport services.
EnterpriseDevelopment
INDONESIA
Private
Sector
MOZAMBIQUE
Rehabilitation
PORTUGAL
Tras-0-MontesRegional Development
* rural road constructionand maintenance.
tUGANDA
Public Enterprises
* divestitureprogram for national
airline;planning of rail and air
service management improvements.
2.06
These trends are healthy
and provide for a broad involvementof
the Bank all aspects of transportmanagementand service delivery.At the
same time, however, there is a compellingneed for a concerted sector
support strategywhich will serve as a guide for Bank staff from different work units in pursuing transport sector reforms and in designing
interventionswhich are aimed at performance improvements.
Without such a
-
14
-
signals are
commonly accepted strategythereis a danger that conflicting
are made for sectoral adjustment under
givanand divergingarrangements
limited conThe danger lies in the still
lending operations.
different
process between the responsible work units and transport staff
sultation
transport sector interventions
in the context of planning and instituting
underprojectswith intrinsically
different
core orientation.
Better
and managementstrategiesis thereof sectordevelopment
orchestration
fore required.
The regional TDs shouldassumea much strongerrole in
such efforts.
They shouldalso be the key centersfor qualitycontrol.
B Country
conoic
and Sectot Work
Of the 68 country economic reports that were published during
2 07
The conthe fiscal year, 41 included transport sector considerations.
tests in which transport matters were addressed included public sector
surveys, analyses of
financing and expenditure reviews, public enterprise
development plans and investment strategies.
Significant
coverage of the
transport
sector was included in country economic work for Laos (Country
and Economic RecoEconomic Memorandum) and Uganda (Towards Stabilization
very). Given the growing evidence that transport is an important element
to economic recovery and broadening of exports, there is more opportunity
and need for interaction
between country economic and sector work. As
networks
will be shown further below, efficient
physical distribution
for improving
prerequisite
important as an essential
become increasingly
trade
performance.
2.08
Transportsectorwork duringthe fiscalyear comprised50 tasks
of which 26 were completed(Table4 in the Annex).Thesetaskswere managed by the regional Infrastructure
Divisions. Notevortixy is the fact
items of transport sector work were carried
that at least 15 additional
the Industry, Trade and
out by other regional work units, particularly
FinanceDivisions.Furthermore,
an estimated25 tasksdealtwith transport sector aspects in the context of sector work which covered urban and
management,
publicenterprisereregional development, infrastructure
Again, a problem was that in several informs, and trade facilitation.
of thesevariouseffortshas takenplace
stanceslittlecoordination
betweenthe managingwork unitsand the regional Infrastructure
Divisions. Limitedinformation
and consultation
processeshave in some cases
led to conflicting
sector strategies
and procedural arrangements. These
circumstances were compounded by the state of the Bank's internal data
bank and information system. Available background material is frequently
difficultto identifyand to retrieve.As a result,many task managers
the Bank's information
reportedto have refrainedfrom investigating
resource centers before launching a major new initiative.
Duplication of
work and avoidable costs have been the consequences. This problem has now
been recognized by Bark management, and improvements to documentation
centers have been initiated.
-
15
-
The four regional offices have pursued differentavenues in
2.09
going about transport sector vork during the fiscal year. The Africa
a guiding
region has devoted considerable effort on trying to establish
frameworkfor transport sector management and development in Sub-Saharan
is in support of preThis initiative
Africa under the SSATPinitiative.
paratory vork for the new Transport Development Decade for Africa. SSATP
is a unique undertaking which is sponsored by a wide variety of multiagencies. Crucial questions that are being addressed relate
and bilateral
to the need to improve arrangement for road maintenance, transport enterof
networks, and rural infrastructure.
prise management, trade logistics
is the work on rural transport and trade logistics
special interest
chains in West and Southern Africa. A number of field seminars were arand managers to discuss
ranged in FY89 for regional sector administrators
issues in Africa and to review options and required measures
transport
These semiand services.
for improving the provision of infrastructure
instruments for disseminating the
nars have turned out to be effective
findings under Bank sponsored sector work and research. The experience
made with similar efforts in the other regional offices points in the
same direction.
Country related sector work in Africa included five more
oriented sector strategy notes (Cameroon, CAR, Equatorial
traditionally
tasks deserve special
Guinea, Gabon and MHozambique).Three additional
mention, i.e. Kenya-Urban Transport Development Issues, Nigeria-Road
and TransportStudy.The Kenya
Sector StrategyPaper,and Zaire-Trade
an agenda for proposed urban transport lending by
exercise established
providing an in-depth analysis of issues and options in this subsector.
the causes and effects of
The Zaire initiative
is a move to investigate
Finally,therewas
on tradeperformance.
transportsectorshortcomings
SectorFinancialPerforthe financialwork done in Tanzania(Transport
manceReview)whichprovidesa probingassessmentof issuesin charging
for the use of transportresourcesand financingof sector development
and maintenance.
The Asian region arranged for a review of transportsectoris2.10
sector work
Otherwise substantial
suescommonamongthe ASEAN countries.
effort
was only organizedfor Chinaand Indonesia.In China,considerable
was put into the ProvincialTransportStudywhichwas aimedat designing
regional
a guidingframeworkfor the planned increase in comprehensive
transport development projects in that country. The Shanghai Ports Study
is of particular
interest
as it representsan analysis of port development and management adjustment needs in the context of changing metropoThe Indonesiaexercises
litan, tradeand transportindustryenvironments.
tasks
tasks.Possiblythe most interesting
were largely'stock-taking'
were undertakenin Indiathroughanalysesof the relationbetweentrade
(TheGrowingConflictbetweenTradeand
and transport sector performance
Transport).
Together with ADB, SDI organizeda workshopto discusstransof regional
port policyissuesin Asia with high-levelrepresentatives
and provide
in
Manila
in
February
took
place
The
workshop
governments.
economies.
the
in
regional
work
valuable feedbacks for further sector
was characterized
2.11
Sector work in EMENA
to establish
agendas for assisting
the regional
by well managedefforts
countries to organize
I
-
16
-
transport
in the changing macro-economic environments.
more efficient
Good examples are documented in the reports on lungary, Pakistan and Poin Yugoslavia which looks at opland.A similar exercisewas initiated
tions for dev loping transport markets in that country.A specialstudy
was carried out In Morocco which addresses issues in managing urban
A Tale of two Cities).
transport
services (Urban Transport Enterprisess
reform needs,
analysisof enterprise
This is a good and comprehensive
which are commioamong metropolitan areas in many developing countries.
is a regional seminar which was organixed to discuss
Of special interest
railway management issues in East European countriess it was beld with
much support by bilateral
agencies in Vienna. Finally, the Maritime Sector Assessment as a contribution
to the proposed Environmental Program
for the Mediterranean represented a major piece of sector work.
2.12
Only limited transport sector work was carried out in LAC, with
in the context of the public enterprise
Mexico receiving most attention
Sector EnterpriThe Argentina-Transport
efforts.
reform and deregulation
ses task was an attempt to shed light on the effects of an uwieldy orgaon transport service provision. Folnizational
setup and overregulation
lowing an earlier and similar study for the West coast of the South American
Subcontinent,
the Region
started
an analysis
of changing
shipping
patterns along the East coast. The findings are intended to provide guidance for developing and managing regional ports. In support of this undertaking a workshop was held in Mendoca (Argentina) to which regional
shipping and port managers were invited to discuss maritime transport
issues. Anotherregional workshop took place to review highway maintenance issues and to disseminate the outcome of Bank work on road managemont.
2.13
Overall,the Bank'ssectorwork continuedto be of high standthe
takenduringFY89 clearlydemonstrate
ard. Some of the initiatives
countries,and the
staff'sawarenessof substantial
changein individual
needs in nationaltransportsystems.If there was one
impliedadjustment
topicto which increasingattentionwas given,it was the relationof
transportto trade.The SSATPand Mexicocorridorstudies,the Indonesia
and Zaire traderelatedtransportsurveys,the sectorreportson Sungary,
Pakistanand Poland,and the specialanalysesin India,all dealwith
this subjectto varying degrees. It is importantto note the substantial
for sectorwork (Graph4); duringthe
increasein the time allocations
fiscalyear it reachedan all-timehigh of 608.8weeks.Thereis however
substantial
concentration
in a certainnumberof tasks,whichmasks the
Time recorded for staff involvement
significance
of this observation.
and in the conin China (185staff-weeks)
under SSATP (99 staff-weeks),
(35 staff-weeks)
Programfor the Mediterranean
text of the Environmental
accounted for more than half of all transport
sector work.
-
17 _
TransportSector Work
GRAPL 4
Annual Staff Allocatlons
(Tlmesowiy spent)
StaffwsekS
-t______
~~~~~~520
200
4001
as
a3
64
C. Portfolio
a6
so
abut
2.14
During. Y89 there were 222 transport
projects
undir supervision,
up from 214 In the preceding year. The actual staff tim allocation
for
supervision
was just under 10 weeks on average, which has not changed
over the years since the beginning of the decade. Railway and port projects continue
to require most attention.
A critical
development is the
time spent oansupervising
the lmpleomntation
of projects
with broad sector orientation
and comprehensive
reform programs. The initially
budgeted
time allocations
were frequently
exceeded by substantial
margins.
The
range was between 20 and 50 staff-weeks.
Typical examples are: Bra:ilPort Technical Assistance,
Cyprus-Transport,
Ghana-Transport
Rehabilitation 2, Indonesia-Rural
Roads Development, Mexico-Highway Sector
I1, and
Nigeria-Transport
Parastatals.
While the point can be made that projects
usually
require more than nomal supervision
efforts
during their
startup period,
i. is nevertheless
telling
that actually
spent supervision
tim for projects
with broader sector, initiatives
did not decline during
subsequent years of implementation
(e.g. Tndonesia-National
Ports Developmnt).
2.15
The performance
record of Bank financed transport
all remined
at a steady average rating of 1.80-1.85,
which
leos in line with the composite rating for all Bank financed
under implementation
during PY89. Looking at the individual
criteria,
as applied
in completing
the 590 forms, following
gest
projects
overwas more or
projects
performance
picture
emer-
-
PerfouRancM
lating
18
-
of Transuort
Prolects
Criterion
Ratlas
TransportProjects All Bank Projects
*
*
*
*
*
*
*
*
*
*
ProjectDevelopment
Objectives
Compliance
with LegalCovenants
ProjectManagementPerformance
Availability
of Funds
FinancialPerformance
Procurement
Progress
TrainingProgress
TechnicalAssistanceProgress
StudiesProgress
Enviroumental
Aspects
1.45
1.56
1.71
1.51
1.84
1.73
1.73
1.58
1.51
1.07
1.60
1.57
1.75
1.52
1.82
1.64
1.61
1.60
1.59
1.25
Only nine percentof all transportprojectswere categorized
as experiencingmajor implementation
problems,and 52 percentwere reportedto
have moderateproblems.
D. Audits and Performanc
Reviews
2.16
During FY89, OEDtogether with the regional Infrastructure
Divisions carried out a total of 28 post-completion
project reviews in the
forn of project completion reports (PCRs) and project performance audit
reports (PPARs). ORDalso issued a report which providesa summary of all
PCRs and PPARs preparedduringthe calender year 1988. All 19 projects
reviewedduringthat period were rated as successes. Most of the 14 projects reviewedwere in the highwaysector.The successratingreferred
mainlyto implemented
investments,
but therecontinuedto be weaknesses
in the institutional
and policyareas.Among the lessonslearnedwere the
followings
*
projectprocessingshouldbe delayeduntilthe
uncertainties
of costsand benefitsare reducedto
an acceptablelevel;
*
over-sophisticated
solutions,complexityand ambitiousobjectivestax the absorptive
capacityof the
borrowers;
*
formal agreement by the borrower to accept technical assistance
is no sufficient
indication
of commitment to institutional
reform;
-
19
* institution-building
requires
series of projects; and
-
Bank follow-up
with
a
* enforcementof axle-load limitationscontinues to
be elusive.
nor new,
The findings of the 1988 reviewwere not surprising
2.17
exceptfor the broad report of success. The picture, however, changes
when one looks at the cohort of completion reports prepared during the
second half of PY89,which were not included in that review. Amongthe
projects reviewed were five railwayprojectswhich showedconsiderable
shortfallsin termsof economicratesof returnand reformprograms(e.g.
XI with zeroand negativerates
IX and Pakistan-Railways
Congo-Railways
of return, respectively).
Under the Argentina-Railways II project subsreform efforts came to a halt. In the case of all above projects
tantial
(Argenloan cancellation
the Bank took strong action, including partial
and suspension of suptina), refusal to extend the project (Pakistan),
plemn^tary credits (Congo). These projects were appraised before the
Railway Problem Paper was issued in 1982, which called for more stringent
up-front conditions prior to appraisal and Board presentation.
E. Research
2.18
The research program for the transport sector generally followed
discussed with the regions during the FY88 Transport Secthe directions
extent
tor Reviewmeetings.Thesedirectionsreflectto a considerable
and implementing
the
the perceivedneeds for guidancein formulating
needs,a
In responseto these.
sectorlendingoperations.
broad-based
progressedduring Y89, and
numberof relatedINUTDresearchinitiatives
a seriesof pertinentdocumentswere issued. Theybasicallyaddress
followingthemes:
pricing and finance,
enterprise
reform,
f infrastructure
maintenance,
* environmental concerns, and
* trade and transport.
*
*
These documents provide probing assessments of some pervasive issues at
stake in transport sector planning and management in developing counthey include guiding frameworks for correcttries.
Tn several instances,
ing common sectorshortcomings.
2.19
However, there was slippage in the transportresearchprogramas
of
support exceeded original time allocations
the demandfor operational
INUTDstaff by 50 percent. The Divisionprovidedabout120 staff-weeks
linked to the key
of support.The regional supportwas appropriately
B
_ 20 -
themes Indicated abov%- but it Ulmited the ability to assi8ga critical
mass of tAme requiredto conductand publishprojectedresearch.It is
clearthat in FY90 supportwill have to be reducedin order to complete
major piecesof work so that the urgentneed for guidancein sectorlend.
met.
ing can be more effectively
2.20
PrLcin. and Flnance. Whlle therewere only a few published
outputs on this topic in FY89,therewas substantial
proaressi related
research which should lead to key documeats In FY90 and FY91. Recent INK
research has focussed oanconcerns regarding demand management, productive
ii pricing policies.
efficiency
andcost recovery, as they are reflected
the transport sector
approach
in
the
appropriate
paper
proposing
A policy
is due in PY91. Also, FY91 will see completion of work financed by the
Research Coamittee on the estimation and introduction
of appropriate road
taxesin countries where data are scarce. The research is being carried
out in collaboration
vith the Africa Region (SSATP), but will have implications for user charge studies in otherregionsas well. The issue of
transport
finance logically
el1lows
on from the pricing strategy.
INUSD
joined with D(TIN and LEG in a studyof 'Build, Operate and Transfet"
to be publish(BO) schemes for the privatefinancing of infrastructure,
ed in FY90.
2.21
anteruris
Reform. Work proceeded on restructuring
of railway
enterprises,
particularly
looking at the pros and cou-iof various conof ports considering the advantages and
trat-plans,
and an administration
disadvantages of centralized
versus decentralized
port functions (this
last effort being f-Inanced by INUTDand carried out by LATIE). The Research Committee approved the proposal for research on Labor Redundancy
which will begin in FY90. A review of labor redundancy efforts in transport in developing countries was completed, illustrating
the significance
of the issue for the sector and the importance of the forthcoming research.
The Division's work on highway
Infrastructure
Maintenance.
2.22
maintenance centered on completion of the Highway Design and Maintenance
of the distribution
of the model
model's PC version, the subcontracting
to McTrans of the University of Florida and the training of staff in the
The regionsextendedthe
regional offices and non-Bank professionals.
Policy Paper with seminars in
dissemination of the Road Deterioration
Asia, Africa and Latin America, supported by PPR. Further research is
being conducted on Road Information Systems with a modular format releVork on maintenance issues
vant to data poor and data rich countries.
country reviews
of the initial
was extended to ports with the publication
on port equipment maintenance leading to detailed technical guidelines in
FY90.
2.23
Entironmental Concerns.
Two sig2ificant
outputs were published
issues. The firstis a set of guideliin FY89 relatingto environmental
nes for the environmental
reviewof investments
in ports vnd harbors.
The
The secondis an analysis of standards for road and rail transport.
latter will lead to a set of guidelines for road and rail infrastructure
air
in FY90 and to an issues paper on transport-related
construction
-
In response to questions
pollution.
INVTD is preparing
in port projects,
on the state of the art
to bo issued in PY90.
for
21
-
from the Board relating to dredging
-- with funding from ENV-- a document
the disposal
of contaminated
dredge
spoils,
continuedin
Trade
sad Transvort.Severalresearchinitiatives
2.24
FY89 tryingto better estimatethe importanceof transport to the comparative tradeadvantagesof developingcountriesand what couldbe done to
networks. A reportentitledTransportand
improverelateddistribution
InvisibleTradeexploresthe relativeweightof transportin the IMP
trends between indusBalanceof Paymentstatisticsand the differing
trialized
and developingcountries.This researchclearlyshowsthe
relativeinabilityof most developingcountriesto obtainthe benefitsof
lowershippingrates A followon pieceof research looks at the impact
through an analysis of
on trade liberalization
of shipping regulations
INUTD related efforts in trade
the deregulation
experience of Chile.
progressed with a number of market analyses
and facilitation
logistics
which assess changing shipper practices and the causes and effects of
ocean
especially
transport industries,
in the international
rostructuring
shipping. Another major task addressed the rapid progression of electronic ,Atworking and the consequences for trade and transport managemet.
reportswill be availablein earlyFY90.Settingthe
The corresponding
necessaryframeworksfor relatedeconomicand sectorwork, as wesl as
Logissectorsupportoperations,
a documentunder the title 'Seatrade,
tics,and Transport'
was completed,to be publishedas Pit Policyand
ResearchPaper in earlyFY90.In orderaddressthe urgentneed for guidance in the regionalofficesas regardsthe adequacyof tradelogistics
managementin borrowingcountries,a pilotstudywas carriedo-atin India
A corresponding
report
to demonstrate
effectiveproceduralarrangements.
entitled'India-The
GrowingConflictbetweenTrade and Transport' will be
published as PPR working paper in November1989.
.P Trainins
2 25
Training related to transport development and management was
organized by several Bank work units.Most of the trainingprovidedhad
strong links to identified
issues and needs. INUTDsponsored a total of
26 afternoon workshops for Bank staff during which experienced sector
managers, mostly from outside, addressed a variety of aspects related to
enterprise
reform, the environment, transport pricing, and technical as
well as orgauizational
change in the transport industry. Furthermore, the
Division arranged for two-day seminars that dealt with toll roads and
trade logistics
management. These workshops and seminars were well attended and provided a welcome opportunity for Bank staff to improve understanding of current sector issues, and of the experience gained elsewhere in arranging for performance improvements. Finally, and following
tradition,
INUTDorganized a one-week seminar for
an already established
Bank staff to become more familiar with modern port management practices.
The seminarwas hostedby the Port of Hamburg.
-22-
2.26
in the regional offices the Infrastructure
Divisions of the
Technical Departments took several initiatives
and arranged for training
of Bank staff,as well as sectorpersonnelin the field.Especiallyactive were the divisions in the Africa and LAC Technical Departments (TDs).
Field seminars were held in the areas of road maintenance management and
the organization
of ocean shipping.Severalvisitsto interesting
transport facilitiesin the 'U.S.A.
were also arranged.
2.27
EDI was particularly
activein Chino during FY89, where seminars
on lntermodaltransportorganization
and transport policy formulation
were held. Training in Africa took the form of road maintenance management workshopsof severaldays duration. A special workshop on Asian
TransportPolicywas jointlyorganizedwith the ADS and held in Manilain
January1989.
2.28
The questionwhich finallyemergesis 'howcan the increasingly
pressingneed for expertisein formulating
and instituting
systemreforms
under the now-styletransportsectorlendingoperationsbe met?' The
Sank'ssectorstaff includesmany fineprofessionals
who require,however,by own admissionmore familiarity
with ongoingtrendsin transport
organization
and management.
Thereis a8so the need to learn from the
experience with pursuing different
avenues to improvethe responsiveness
of transport services to changing demand patterns,
and to arrauge for
better performance -- technical and financial-of national transport
systems. The Bank's sector research program is addressing these issues
but there is the fundamental requirement to organize staff training in a
complementary manner. This will be a challenge for FY90. The regional TDs
should take the lead role, with support from *hu'sTransportDivlsion.
II: ThR&hIENTOf SELOcTEDTRANSPORTSECSORISSCES
3 01
The changing orientation
from modal to broadersectoral and
multimodal lending represents the culmination of a trend which began when
the Bang reorganized the subsectoral
regional highways and ports and
railwaysdivisionsintotransportdivisionsand subsequently
into InfrastructureDivisions.As the coammlnatcy
of issuesacrossthe transport
modesbecomesmore evident,lending nas taken a broader focus and it is
now more appropriate
to discussUna effectiveness
in the sectorby looking at genericissuesratherthan just the individual
modes. Needlessto
say, the particularly
technicalconsiderations
relatingto individual
modes should not be ignored but rather brought into a betterbalancewith
the sectoral perspective
and the Bank's desirefor significant
progress
on institutional
and policyreforms. Indeed,certainissuesmay only
relateto a singlemode. The follo*ingreviewthusbreakswith the traditionalmodal perspective
and is organizedby issues,basedon the discussionin the SectorStrategyPaper issuedin FY89.
i 23
A. TansporE PKICin aSd Piscal
Manageent.
3.02
Last year's Transport Sector Review and the discussionswith
of transport
infrastructure
the regions identifiedpricing and financing
more
effective
Bank
policy,
related
services
as
a
crucial
ares
for
and
The PY89 portfolio
of lending
technical
guidance and country dialogue.
in coming
heightened
interest
a considerably
and sector work represente
and
to grips with tho issue and provides an array of varying objectives
approaches
being applied.
More thanhalf of the FY89 transportprojectsdealwith the need
3.03
or private enterprito improve the performance of transport parastatals
to note that the pricing focus in most of these
ses.
It is interesting
of existing tariffs
with overall revenue
projects is on restructuring
levelsbeingrelativelysatisfactory.In the case of gmlE,the Bolivian
Railways(ExportCorridorsProject),while presentfinancialratiosare
and the exceshealthy,there is a concernabout futurezoad competition
sivechargingof longdistanceversusshortdistancetraffic. Zaire's
ONATRA(responsible
for rail,riverand port services) and SNCZ (railways) requiretariffrestructuring
(Transport
Rehabilitation
I). In the
lattercase,mineralproductshave been carriedat tariffssubstantially
abovecosts, while agricultural
goodshave been carried belowcosts.
Similarly,Ethiopia's
MaritimeTransportation
Authority(MTA)and Maritime and Transit Services Corporation (MTSC)appear to be financially
strong despiteunchangedtariffsfor the past ten years. Structural
necessaryin orderto promoteefficiency
changes,however,are considered
(Transport
Project).Bettercost-basedport tariffsystemsare also called for in Uruguay (Transport I) and in Algeria (Third Ports Project).
Even under the Chile-Urban Roads and Transport Project,
the overall financialsituationis considered
viable,includingthe Metro,but improved
Metro-bustariffsare calledfor.
tariffstructuressuch as integrated
VII does the overallfinancial
Only in the case of Yugoslavia-Railways
performance
seem so dire that the focusof conditionality
is on acrossEncouraging
is that most of the studies,
the-boardtariffincreases.
have been completed,except
requiredto establishtariffrestructuring,
in China and Uganda,so that the projects'focuscan be on implementation.
*
3.04
The rationalization
of subsidiesis also beingaddressedin the
initiative
being
projectswith the most significant
enterprise-related
II). Whileroad freightservicesare
undertakenin Hungary(Transport
generallyself-financing,
urbanand suburbanpassengerfaresare heavily
subsidized.The projectcalls for a 50 percentreductionin the levelof
bringfaresto the
passengersubsidiesby 1993whichwould reportedly
with
equivalentof 'fullmarginalcosts'. This has been complemented
the authorization
of privatemini-busand tazi services, the competitive
routesand a studyto betterdirectsubsitenderingfor non-remunerative
dies to targetgroups.In otherprojects,the subsidyissuebas been'
handled by seeking transparency and compensation, as in the case of the
I projects,
Rehabilitation
Yugoslavia-Railways VII and Zaire-Transport
both requiring government compensation for non-remunerative services.
-
24
-
will continue under regulatory control
3405
Most of the enterprises
but there are a few instances where attempts are being made to liberalize
The Zaire project is seeking the handing over of tariff
tatiff controls.
are exand SNCZ, and the Algeria port enterprises
decisions to ONATRA
tariff
regime and to take on finanpected to work toward a decentralized
investment as mell as operations.
for infrastructure
cial responsibility
for Chad.
of tariffs
The most dramatic reform measure is tho deregulation
floor and
ian trucking with a two step approach beginning with a tariff
leading to a full deregulation within one
ceiling for trucking services,
year (Transport
SBCP4).
3.06
All of theseeffortsrepresenta positiverespOeseto the need
Given
performance of transport enterprises.
to improve the institutional
there are concerns as to whether
the experience under past Bank projects,
and future annmal reports
the objectives may appear over-optimistic
shouldmonitortheseprojects. Another concern relates to the emphasis
on cost-basedpricing.Each projectprovidesa varyingdefinitionof the
financialratiosand different
target with most focussingon traditional
rates of return on assets.
One project (Bolivia-Export
Corridors) defines long run variable costs as a target. In all cases, the objective is
to set tariffsequivalentto the costsrelatedto carryingthe specified
startingpointfor ratiotraffic. Whilesuch a policy is an appropriate
towardswhich thesepronalizingtariffs,financialself-sufficiency,
Guidance
pricing.
jectsaspire, may require some form of discriminatory
will be needed to better organize commercial policy and to ascertain
of demand as a basis for possible discriprice and service elasticities
minatory pricing.
3.07
The treatmient
of cost recoveryin the case of 'no-enterprise'
transportinfrastructure,
for which indirectuser feesas opposedto
to the observations
direct charges are applied, reveals many similarities
procedures
major areas where analytical
made above but also illustrates
and definitions
need clarification.
Roads are the primary focus of these
analyses and references to cost recovery are made in each projectin
varyinglevelsof detail. Generally,the reportsconcludethat user fees
through road-related
taxation more than coverexistingand requiredexpenditures.
Fuel taxes are the main source but fuelpricesare only
provided in five of the SARs. As with transport enterprises,
the conclusuch that
sion is that the structure
of road user fees is inappropriate
heavy commercial vehicles do not pay the proportion of road costsattriis not
butableto theiruse. Again the definitionof 'attributable'
apparentin everycase The Guatemala-Secondary and Regional Road RehaProject provides details such that short term costs are equibilitation
valent to routine and periodic maintenance, less 35-45 percent for
and long-term costs Incorporate rehabiliweather-related
deterioration,
In
Trucks pay short-term instead of long-tern costs.
tation costs.
costsprior to a reHungary,truckspaid 15-20percentof attributable
cent increaseof dieseltaxes. Most of the projectscall for further
study (Hungary, Uruguay, India, Guatemala and Gabon) while the Korea-Road
Improvement SARmakes reference to the recommAndations of a prevlous
study being under review by Government. The Thailand-Migbffy Sector II
SAR refers to a five year phase in plan for taxing heavy vehicles.
There
-
25 -
appears to be a hesitation
on the Bank's part to include these considerations in loan conditionality.
contrary to the approach being taken with
regard to traunsport enterprises.
3.08
There is clearly a need for guidance on standard paramters,
analytical
procedures and appropriate targets to be applied in road user
charge studies which would strengthen the dialogue on this issue and
hopefully would save consultant costs in the endless number of studies
being undertaken with little
tangible results.
Target cost coverage has
been limited to someportion of maintenance costs and the financing issue
which would result has not been addressed. Calculations
of congestion
costs are notably absent. It is also not clear how interurbancosts and
revenuesare separatedfromurban. It would be more usefulto look at
road user chargesfromboth the urbanand interurban
perspective
before
declaring that charges are sufficient.
A partial prescription
may lead
to conflicts
between urban project objectives and interurban projects.
3.09
While user fees are considered adequate in the aggregate, most
countries do not allocate funds to transport,
and alternative
user charge
Instruments and earmarking are prescribed.
The Provincial Transport
projects in China, as an exception, follow a balanced budget approach
with an earmarked charge on public truck revenues and on own account
trucks. In the context of the Road Improvemeat Project,
a draft law was
prepared establishing
a special account for highways to cover 60 percent
of highway needs.
Tax receipts,
loan funds and bond revenues will be
depositedin the account. Lastly,the Chad-SECALSAR calls. for the establishment
of a road fundwith earmarkedfuel taxesas the main source.
The projectalso supportsimprovements
in the collectionof fuel taxesas
a msans of increasingrevenueswith the understanding
that furtherincreasesin the tax itselfwill not be effectiveand will promotefurther
smugglingfrom bordercountries.Fuelpricesare alreadyat $3.50and
$3.25per gallonfor regulargasolineand diesel,respectively.Tolls
are discussed to some extentin the SARs for the Thailand-Eighway
Sector
I1 and in the China-Shandong
Provincial
Highwayprojects..In Thailand,
the attemptto buildprivatetoll roadshas been difficultdue to excessive risk protectionrequirements
by the privatesector. In Shandong,if
tollsare to be applied,it is agreedthat the toll levelshouldnot
exceed30 percentof the savingsin vehicleoperatingcosts in orderto
minimizeuneconomictrafficdiversion.The Bolivia-Export
CorridorsSAR
suggeststhat the Governmentconsiderliftingtollson nationalhighways
and considerraisingfuel taxesbecauseof the seriousevisionand leakage and the high user cost in termsof waitingtimesat tollbooths (estimatedto be twicethe amountcollectedfrom tolls).At the Bank sponsoredsymposium on Earmarking and Toll Roads in FY89, a number of papers
were presentedillustrating
the successesand failuresof such schemes,
and relatedadvantagesand disadvantages.
It is not apparent,however,
that such lessonshave been takeninto consideration
in the presentproject cohort.
3.10
On. of the broaderinitiatives
in infrastructure
cost recovery
was the Tanzania-Transport
SectorReviewwhich lookedat improvingthe
financial
performance and cost recoveryand increasingrevenuemobiliza-
-
26 -
tion to ensureadequateresources could be allocated to support road
framaintenace and rehabilitation.The review developed an analytical
the main
identified
meworkfor examiningsector expenditure patterns,
recomnended solutions to correct inefficient
causesof weak performance,
and developed
and poor controlsover expenditures,
revenueadministration
a financingplan to ensurethat roadsare maintainedin the longerterm.
The Africa Region is extending this analysisto other countries.Moreover, PPR has initiated
a series
of back8round
papers
and research
lead-
Ing to a policypaperon the pricingissue,especiallyas it relatesto
for transportinof agenciesresponsible
performance
the institutional
frastructure.
risse.
B. Camiercialsad Operational
Uauaeinnt of Trasmort Nutert
in
The FY89 portfolioapplieda wide rangeof reforminstruments
3.11
of the institupoor performance
an attemptto redressthe historically
over decenlending.
From 'contrat-plans'
tional aspects of transport
to simply eliminating non-remunerative
and privatization
tralization
services and facilities,
Bank efforts have taken a more aggressive stance
on enterpriseinefficiency,
based on the presumption that an enhanced
commercial outlook by transport operators is a key factorin establishing
Contractual
accountability
and thus improving production efficiency.
agencies were applied in
agreements between governments and parastatal
the Zaireand Boliviaprojects. In Zaire,a conditionof effectiveness
vas the issuanceof a 'Contrat-Programme'
for OVATRAand SNCZwhich would
and operational
percovera period of three years and define financial
formancemeasures,staffingpolicies,marketingand investment
objectives
and debt restructuring,
compensation
for
on the part of the parastatals
unprofitable
services,and tariffpolicieson the part of the Government.
More detailedactionplansand corporateplansfurtherdelineatehow to
of ONATRA'sservicesto
meet the statedobjectives.Decentralization
better delineate cost and profit centers and the divestiture
of unprofitSimilarly,
the Bolivia project calls
able services is also called for.
for a performace
agreement between the Government and the railway (ENFE)
as a condition of first disbursement covering the obligations
of each
over a periodof two yearsand providingfor commercialautonomyand
by the parastatal.
responsibility
3.12
A numberof Bank projects are attempting to stimulate private
competition as a means of pressuring parastatals
to improve efficiency.
In Ethiopia,lendingto competing private truckers will be provided in
parallel
with the state trucking company, EFTC. In Hungary, action is
And in
being taken to recognize private operators in urban transport.
Going
will open the port of Kinshasa to private operators.
Zaire, ONATRA
one step further is the Chad-SECALwhich has proceeded to eliminate the
as a condition of
state trucking monopoly of CTT with its liquidation
first tranche release.
-
3.13
Labor redundancy
arises
27 -
as a major
issue
in a number of the
The Uganda-Railways I SAR includes actions to remove redundant
projects.
positions.Yugoand abolishnon-essential
recruitment
workers, restrict
slaviarailwaysagreedto reducestaffby two percentannuallyover the
next fouryears (aswell as close 168 freightservicesand stations).
The Zaireprojectcallsfor ONATRAto reducestaffby 2,000 (of a total
of US$1.5millionIDA funds
of 18,300)as a conditionfor disbursement
into a retirementaccount. A similar condition is includedin the case
to existing
of SRCZ Othermeasuresare designedto improveincentives
an issue
This
project
raised
technical
capabilities.
staff and enhance
labor
used
to
finance
can
be
for the Bank on whether or not loan funds
payoffs in redundancy schemes. While no direct cash payment is allowed,
the BSankapparently vill permit payment in terms of giving productive
assets to the employees. Bank guidelines and policy are required on this
issue which is a key elemnt in many transport projects.
of the enterprisereformissue
Due to the politicalsensitivity
3.14
in many countries,actionsare oftentakenoutsideof any specificlending. This occurred recently in the caseof Uruguay,where the Government
and the railways
entered
into
a performance-contract
calling
for a major
In the first year passenand downsizing of the railway.
reorganization
ger and parcel services were eliminated and over 4,000 staff were declar.
ed redundant (of a total of 9,100). No one was fired but redundant staff
were offeredjobs in otheragencieswith over half ending with higher
salariesthan on the railways.The railwayis now directingits attention
a
to handling freight on a comiercial basis with deregulated tariffs,
and revised work rules for
reduced network, a new corporate organization
labor. Bank financed studies and sector work as well as the EDI sponsored
High Level Policy Seminar in Puitta del Este played a role in this effort.
in MexiSimilarly,
A case study report is currently under preparation.
and project preparation
co, following recent Bank sector work activities,
of Mexican trucking has been launched without
work, a vast deregulation
Both examples point to the importanany relation to a specific project.
ce of Bank policy dialogue, independent from specific project activities.
3.15
Considering the extent of such reforms and the projection of
more to come, it is Important to monitor the results and to improve the
In
phases in these reforms
understanding of the dynamics of transition
the Chile-Urban Streets and Transport SAR, one annex describes the expein Santiago.
Whilefinding the results of
rience of bus deregulation
to be positive overall in that service expanded dramaticalderegulation
practices of carly, issues are raised concerning the anti-competitive
tels whichdo not permitvaryingfareson a routeand the levelof congestionwhich has arisenas a resultof inadequate
urban roadpricing.
Studyfor Moroccoanalyzesthe impactof
The UrbanTransportEnterprises
allowingprivateurban transportoperatorsto competewith municipal
operators.Again,a generallypositiveconclusionis reachedwith some
is directed
required. In this respect, attention
regulatoryfine-tuning
at the impacton low incomepassengersand whetherthe municipalcompanies, the privatecompaniesor somemixtureshouldprovide'social'serThe recoumendations vary by city, based on the successor failure
vices*
of the corresponding municipal transport companies. These lessons will be
-
28
-
important for designing reforms in other countries
should help persuade reluctant
officials.
and the experience
C. Management and MaIStenance of Hiahwavs
3.16
The mg9 cohortof highwayprojectsdisplaysa considerable
requiflezibility
in project desigp to meet the specific road transport
renents of borrowers, within the policy framework articulated
by the Bank
Policy Study on Road Deterioration
in Developing Countries, which was
published in 1988. In an increasing number of operations,
particularly
in the LAC region, the project scopeencompasses the entire road system.
The key project objective is to improve the condition and serviceability
and quantifiable
targets,
of the road network in termsof well-defined
beycondthe physical outputs of the maintenance programs. The BoliviaExport Corridors Project exemplifies this approach. The primary objective
of the project Is to improve the trade corridors of this land-locked
country but the project equally aims at system-wide road maintensace
improvements.
The Guatemala and Uruguay projects are the only operations
in the PY89 portfolio
that seriously address the institutional
and operational problems of rural roads maintenance. The preoccupation with preserving and improving the main road networks has tended to deflect the
Bank's attention
from the issues of rural transport and provision of
basic road access to rural areas.
3.17
Last year's operations point to a distinct
regional differentiation in the scope and content of highway projects.
The primary emphasis
in Asia is on capacity enhancement of main road networks and improvements
in institutional
efficiency
and road safety.
In China and India, for
esample, the main project focus is on modernization of the road systems
at the provincial
or state levels and introduction
of more efficient
road
technologies and management systems.
These projects serve as the foundation blocks on which to build a modern road organization.
The proposed
studyfor the organizational
reviewof Maharashtra's
PublicWorks Department in the India-State
Roads I Projectshouldbe carefullymonitored,as
the findingsand recommendations
of this studycouldhave far-reaching
implications
and lessons for district
road administrations
in SouthAsian
countries as well as other countries with multi-tier
road administratione. The projects in Korea and Thailand respond mainly to the investment
needs of sophisticated
highway borrowers with a long operational
relationship with the Bank. The highway organizations
in these countries are
technically
capable, well-managed, and efficiently
run. They require Bank
institutional
assistancemostlyto adaptnew technologies
(e.g.maintenance/pavement
management)to theirspecificcircumstances
or to incorporate emerging concerns like safety and environment in their planning and
operational
work.
3.18
In LAC and Africa regions,on the otherhand, the primary concern of Bank highwaylendingis with road rehabilitation
and maintenance
with a strongemphasison establishing
appropriate
managementstructure.,
_ 29 -
and systems. Much of the main road system is in place in theseregions,
with reasonablecapacityto meet road transportdemandwell into the
and relatedhighway manage1990's. The LAC seminars on roadmaintenance
ment workshops, targeted at decision-makers and senior highway officials
have helped to foster a maintenance culture in the
in regional countries,
highway sector in these countries and the recent Bank projects in LAC
reflect the heightened concern with preserving past road investments and
in
management of limited road maintenance resources. Similarly,
efficient
(mR), under SSATP,
the Africa region, the Road Maintenance Initiative
has opened a new chapter in the Bank dialogue on road maintenance with
In the recent series of road maintenance
its sub-Saharan borrowers.
donors, an attempt was
policy seminars, supported by ECAand bilateral
made to establish a closer identity of views on road maintenance issues
of planning and finance and the highway agencies.
between the ministries
of the Bank
strengthening
These seminars were successful but substantial
pipeline of road maintenance projects is required if MIU is to have a
under the
more lasting impact.
The two FY89 road maintenance initiatives
Chad and Gabon projectsconstitutetoo weak a response to the road maintenance challenge in sub-Saharan Africa. EMENAhad only one project with
substantial
highway focus during FY89 (Hungary-Transport I:), hence, it
is difficult
to assess the emerging trends in highway lending in this
region.
There are two important developments emrging from the FY89
they provide new directions
and challenges
cohort of highway operations;
for the design of future lank-supported highway projects.
Firstly,
road
safety has emergedas a majorconceit in almost all FY89 highway operations in the Asia region.
The most significant
effort is reflected
in
the Korea project where the Government has declared reduction in road
accidentsas a priorityobjective.In China and India, safety elements
have been incorporated
in road designand operations.For road safety
measures to succeed, it is necessary to incorporate safety elements in
starting
from safety-conscious
all aspects of Bank highway operations,
road design to safety-oriented
operation and maintenance of the highway
system.
3 19
3.20
Secondly,thereare the aspects of managementsystems. Nearly
all highwayoperationsin the FY89portfolioincludedthe introduction
or
strengthening
of managementsystemsto supportthe operationand maintenanceof the highwaynetwork. Monitoringand assessmentof roadconditionsis becomingan essential
element of highway maintenance components,
while
provision of road maintenance
equipment is conditionedto the ope-
rationof an equipmentmanagementsystem. The main objectiveof these
managementsystemsis to fostera greatersenseof accountability
in the
use of increasingly-conshighwayagenciesand to make cost-effective
trainedfinancialresources.As indicatedin the Chile-Urban
Streetsand
Transport Project SAR, a more consistent approach to the evaluation of
urban transportinfrastructure
improvement
programsis neededas well as
the properadaptationof variousroadmanagementsystemsto the urban
environment.
_ 30 -
D. fr@roamentalConcerni.
concernaboutthe
rowingpublicawarenessand international
2
3.21
projectshas also sparkedmuch debaenvairoamental impactsof development
adverseeffectsof projectson the
te within the Bank on how potentially
enviraoment in which they are positioned could be minimized. While there
the expected
hae been a requirement since the early 1980s to stipulate
of Bank financed projects in the respective
consequences
environmental
SAR9, the referencestendedto be cursoryand oftenlackedsubstance.
the
after the reorganization,
however, sand particularly
More recently,
Bank has taken energetic steps to ensure appropriate assessments of the
ENV and SN have
expected environmental effects of lending operations.
taken the lead in preparing guidelines for environmental impact assessments. Tbe research write up in Chapter 1I describes the transport sector
related guidelines which were prepared during FY89.
The MaritimeSector Assessment (MSA), wbich was prepared by
3.22
to the proposed Environmental Program for
INUTDin PY89 as a contribution
a framework for dealing with environmental
established
the Mediterranean.
Impact assessments
under regional
port
projects.
MSA also
set
an agenda
for possible projects to improve the marine environment in this regional
sea. The design of the Third Ports Project in Algeria, which includes
environmental protection measures, demonstrates the usefulness
effective
Reference is also made to environmenof such broad regional guidelines.
under highway projects which were appraised during the
tal considerations
fiscal year. A serious effort has been made in a number of these lending
(e.g. in Guatemala, Thailand, Chile) to involve the governoperations
agencies in the assessmentand monitoringof highway
ments'environmental
projects.
has to be made thatmost of
3.23
Overall,however,the observation
the projectsappraisedduringFY89 have only limitedreferenceto enviIt
ronmentalconcerns.This is an issuewhich requiresspecialattention.
Divisionsin the regionalTDs who
the Environmental
will be particularly
with regardto
shouldscrutinizeproposedtransportlendingoperations
issuesearlyon in the project
treatmentof environmental
appropriate
preparation
cycle.
E. TradeLogisticsManaewment
3.24
Effectivelinksbetweenindustry,tradeand transporthave becoand managemuntof
importantcriteriain the organization
me increasingly
productionprocesses,importand exportflows,and salesarrangements.
Inventoryreductionis generallyconsideredto representa major potenthereis
Consequently,
tial for reducingthe costs of tradedcommodities.
trading circles to minimizestocks
a forcefuldrivewithininternational
required for production or sales. This trend has led to 'Just-in-time'
services
The providers of trade related transport
delivery requirements.
-
31 -
worldwide have made swift moves to meet the changing shipper requirements
In the wake of these developments, fundamental restrucmore efficiently.
turing In transport networks continues to take place. Unprecedented adcargo packaging and handling, as well as communicavances in transport,
of trade
the reorganization
tion t cbnologies have served to facilitate
logistics
systems.
of service networks
and restructuring
Changing shipper practices
3.25
Foreign trade
implications for developing countries.
have far-reaching
partners require local transport arrangements which are responsive to
in
logistics
arrangements. Transport operators,
their new distribution
to meet the shippers'
infrastructure
turn, are dependent on efficient
In most developingcountries,these
effectively.
changingrequirements
outmodedregulations
conditionsare not met. Deficientinfrastructure,
-especially
by the publicadministration
and heavy-handed
involvement
positionof thesecountries,
customs-tend to underminethe competitive
cosmdities in world markets.Thus there is a real danger thateconomic
In most borrowmay be impededby reducedtradeperformance.
development
and manageinstitutional
ing countriesmajor reformsof the regulatory,
rial frameworksare calledfor in order to containtradedeterioration
locallogisticsnetworks.
due to inefficient
3.26
Severalsectorwork taskswhichwere carriedout duringFY89
growingawarenessamongBank staffof the dangerthat lies in
demonstrate
transportsystemsin developingcountriesas regardstrad.
inefficient
The CorridorStudiesin Africaand Mexiperformance and competitiveness.
co addressthis issue.The marketanalysescarriedout in India, IndonesLa and Zairehad the objectiveto determinethe effectsof poor logisticsnetworks and cumbersome transport service arrangements on trade
performance. The sector work in Hungary,Pakistanand Polanddealtwith
the sameissuesin the contextof assessingtransportsectoradjustment
Corridors,
needs.Two of the FY89 lendingoperations(Bolivia-Export
to localtransportsysEthiopia-Transport)
tacklerequiredimprovements
tems in supportof tradedevelopment
objectives.
The necessaryreformand systemadjustmentprocessesentail
3.27
understanding
of the underbroadmarketanalysesand requiresubstantial
lyingforceswhich causethe constantchangesin shipperpracticesand in
that servethe
of the transportindustries
the structureand organization
experiencein goingaboutsuch effortsis
trademarkets.Considerable
thereforerequired.As is the case elsewhere,the Bank'sabilityto adis stilllimited.In responseto this
dress theseissueseffectively
need, INMTDand otherPPR unitshave put major emphasisin theirwork
and on drawingup opeprogramson analyzingrelatedmarketdevelopments
The outcomeof much of thiswork will be diss-minatrationalguidelines.
ed duringPY90. The TradeLogisticsWorkshopof March servedto promote
professional
dialogueamongBank staffon issuesrelatedto the interdependenceof tradeand transport.Frequentfollow-upalongtheselines
shouldbe considered.
_ 32 -
7. TnlOI
UMV63NG
Ts 11lilm
s5CTOR
VIT! EIGfA-YS
fromprojectspeci4.01
The conceptof sectorlending,a progression
fic leading,was Introduced in the mid 19709,with the objectiveto
broaden the Bank's developmental tmpact, to provide borrowers with more
and
and faster disbursements,
enablinglargercosmitments
flexibility
Sector lending was considered for
increasing Bank staff productivity.
with
sector investment program, institutions
countries with satisfactory
and where agreements on required reproven implementation capabilities
had been reached. Policy
forms to improve policies and administration
Loans were
for such lending.
reforms becam one of the justifications
and which could
still disbursed for subprojects which met agreed criteria
after loan approval during Bank reviews of investment probe identified
to borrowers in their preparation.
Sector adgrams and its assistance
justment lending, the latest instrument introduced in FY89 (Chad-Transport SECAL), supports more comprehensive policy and institutional
reforms. Agencies involved tend to be at a higher policy level than the
traditional
sector institutions.
In transport,
the sector lending approach was not new. Sector-wide
coveragewas oftenpursuedunderrailway
included coveand many transport projects
and road maintenance projects,
nanted policy objectives.
Thus transport projects often had sector loan
Adjustment lending as such is only beginning as related
characteristics.
objectives were pursued under broaderoperations,
such as structural
adjustment,
and public enterprise
reform loans or credits.
A. The Exoerience
Record
4.02
This reviewdrawsessentially
on the experience
with highway
subsectorloans.Such lendingwas used earlyon in the transportsector.
With the experience gained, CPS 10.03 of March 1982 indicatedthathighwhenever
way subsectorlendingshouldbe the preferredmode of operations
countryconditionswere appropriate.
Conditions
were addedto the provisionsunderOMS 1.19 of November1978 to providethathighwaysubsector
loans should ensure:
*
agreement on adequate levels
tures;
*
investment and maintenance programs spanning no less
than four years;
*
agreedphysical targets and annual expenditures for
expansion, rehabilitation
and maintenance of different classesof roads;
*
a feasible
financing
plan;
of maintenance
expendi-
-
33
a
*
effective
srrangments
for monitoring of program
implementation,
with the natureand timingof consultationsagreedduringnegotiations;
*
the adequacyof policieson roaduser charges,fuel
pricing, vehicle weight limitations,
safety regulations, efficiency
of road transport services, and of
staffing and training programs.
4.03
The question has been askeds'how successful hate these sector
type operations been in reaching their objectives?"
The answer cannot be
conclusive,
not the leastbecausethe achievement
of policy objectives
was difficultto monitor.OED foundlittleevidencein its 1987 annual
review,that these lending operations improved efficiency
of project
execution, or strengthened sector management, or enhanced the policy
dialogue.The conclusion was that more Bank staff time was needed for
sector lending and that better ways had to be found to monitor and super.
vise the projects and to prevent quick disbursements from undermining the
policy dialogWe. The PY88 Transport Sector Review further queried the
criteria
qualifying for sector loans and Aether enough attention was
given to technical,
financial and institutional
matters during implementation.
4.04
Case reviews of highway subsector loans are presented in the
Annex. Such lending generally developed in countries that had already
benefittedfrom severalhighwayprojects--more than ten in some instances. In many instances,however,theseborrowershad not fulfilledobjectives other than the building of specific roads. The Bank's policystudy
'Road Deterioration
in Developing Countries' shows, for instance, that
despite substantial
efforts much remains to be done to improve road net.
work maintenance.
It was expected that sector lending would break new
ground and thus, it often proceeded with some of the above mentioned
conditionsnot met.
4.05
Nevertheless,
the overallassessmentof highwaysubsectorlending is positive. In some instancesthisenabledor even causedthe expectedadvantagesto materialize,
albeitwith delays(e.g.Cote d'Ivoire,
Colombia).In othercases it provedpremature,even in a few countries
where most preconditions
appearedto be fulfilled.
Under suchcircumstances implementation
recordhas not been satisfactory.Sectorlendingdid
not proceedin some othercountrieswhereBankmanagementadheredmore
closely to the preconditions
and continuedthe more traditional
project
approach,withouta system-wide
dialogue. OED, despiteconcernson sector lendingexpressedin its FY87 annualreport,concludedrecentlyafter
auditing three road projects in Cameroonthat 'thecurrent performance of
the transport sector is due to the government's lack of commitment to
genuine change and to the lack of a coherent program ... Continued assistanceon a project-by-project,
subsector-by-subsector
basiswouldbe
counterproductive...'.
The followingsectionsdiscussthe extentto
which broad sector lending objectives were met.
-
34
a
4.06
BiladefedDevelouMLn
-mDCmt.
Sectorlendinghas providedthe
to broadenthe Bank's development
impact. Standardproject
opportunity
loans offered less scope for a sustaineddialogueon importantsystem.
thatwere rewide matters.They focusedon a few specificinvestments
so that these
viewedIn greatdetailfrom varioustechnicalperspectives,
projectsweoreas good as they possiblycouldbe. This focusgave the
Bank its traditional
trademarkof excellence.Whileprojectloansin
some countrieswere successful in achieving major institutional
objecti.
ves, the generalobeervation
is that sectorlendingrepresentsa clearer
intention on the part of the Bank to tackle the transpozt system as a
whole. It has helped to clarify the Bank's role beyond just financing
'good'projects. The impactof a broaderprojectcoverageon investments
and policies,programsand implementation,
and institutions,
is discussed
below.
Sector loans, by Includand EvaluatLiS.
InvestIent
Proarains
4*07
ing investment programs, both improve investment choices and help to
build up local institutions.
Sector loans require discussion of, and
agreement up-front on technical standards, evaluation methodologies and
procedures applicable to investments
over a programperiod,and allowa
and required revisions.
Many
continuous dialogue on their application
loans require application
of agreed criteria
not only to specific subprojects they may finance but to all sub-projects
in the investment pro.
gram, as a basis for selectlg
standards and priorities.
An increasing
program,ratherthen the
numbor of operations include the expenditure
investment program, seeking to improve road maintenance allocations
as
well.
While more projects are .nalyzed in the early stages of sector
lending, overall economic evaluations seem to be weaker than those for
The set of alternatives
analyzed may be smaller.
Bank-financed projects.
Adoptedstand"rdsmay be less than optimal, and if so, normally biased
towardsprematurecapacityadditions.But the cost-benefit
analysesbased
on agreedcriterialimitthe extentof excessivecapacitjthatcan be
justified,and resourceavailability
usuallylimitswhat can be financed.
Projectchoiceswere generallycorrect. While top priorityprojectsare
not alwaysundertakenfirst,overall,investmentprogramsseemto have
improvedover time.In countrieswith more resourcesavailable,programs
motivated'
occasionally
includeddoubtfuland high cost 'politically
projectsand the diaprojects. Bank stafffocusedon the controversial
loguehas frequentlyresultedin theirpostponement.Whereasproject
when rationalizing
the
loansnormallyfocussedon the 'whiteelephants'
the
non-Bank financed investment program, sector lending facilitated
cumulative impact,
discussion of marginal projects that have significant
and that can be improved by,-for instance, reducing the number of lanes
or adopting stage-construction.
sectorloansare more effectivethe higherthe
4.08
Not surprisingly,
Bank'sleverage. Sectorloans,normallybetweenUS$ 30 millionand USS
200 million, financed between six percent
and 20 percent
of the highway
investment programs
programs. They have not been able to rationalize
that have broadly available funding. In such cases, the relatively
small
Bank contribution
generally had little
leverage. At the other extrem, in
the poorer countries particularly
in Africa, where the Bank and cofinan-
-
35 _
clers coveredup to 95 percentof the costsof agreodexpenditure
programs.includingmaintenance,
the programwas scaleddown to match available resources,and eachprojectin the programhas been selectedon the
basis of detailedstudies.
4.09
Some aspects of expenditure reviews remain to be improved, not
only in the transportsectorbut also in the contextof publicexpenditure reviewsand structural
adjustment loans. They include:
*
extra-budgetary
financingwhich is oftenfoundby
governments for some of the less economic projects
that are not coveredby the investmentprogramor
its reviews;
*
decentralized
expenditure programs, an important
share of the sector program in some countries,
which
are often not reviewedor not even available;
• phyiicalwork programs which are seldom prepared as
would be neededto establishconsistency
amongimplementation
options,the investment
programand
annual budgets; likewise, multi-annual budgeting to
ensurecontinuityin financing of ongoing works is
rarelythe practice.
*
adequate expenditure levels
remain to be defined.
in the sector which
4.10
While the program concept clearly broadenedthe Bank's development impact, it is unclear whether the annual expenditure reviews were
carriedout effectively,
due to Bank stafftimeconstraints.
Also, it is
questionable whether the reviews prompted the desired response by governments. The problem is especially
serious with Bank staff changes.
In
largecountrieswith extensiveprograms,the knowledgeand understanding
of a programby Bank stafffrequentlyrequiresseveralyearsof accumulatedexperience,
which is difficultto standardize
and to storein the
Bank'sinstitutional
memory.
4.11
Imaleusntint Sector Loans. Sector loans may finance only a few
projects of the program, but also, as in the case of Latin American
countries,
they may finance more than a 100 small projects procured under
local competitive bidding.
Bank-financed projects seem to have a better
implementation record than the rest. Their range of expected economic
rates of return is similar to that of standard Bank projects;
ex-post
ratestend to be similarto the originally
calculated rates. Cost variation occur frequently,
but are not worse than understandardprojects.
Project implementation periods tend to be similar for projects and sector
loans, in the four to seven years-range.
Bank staff still inspectsome
works in detail,
as under standardprojects,and work qualityseemsto be
of similar standards. Thus, the fear that sector lending would result in
a substantial
decline .in quality is iargely unwarranted.
-
36 -
4.12
Worksnot financedby the Bank tend to have higherCostS and
longerimplmentationperiodsthan foreseen,mostlybecauseof poorer
projectpreparation
and financingshortages,resultingin expensivework
stoppages.The qualityof worksmay be poorer;more domesticand less
experienced
contractors
are generallyinvolved,and lessadequatesupervision may be another cause. It is difficult,however, to infer that
this is betteror worse than without sector lending. Procurement practices and contractcoverageconstitutemain causesfor high unit costsand
ineligibility
for Bank financing in many countries.
An adequate procurement system is a precondition
to proceed with sector lending that is
often not fulfilled;
still,
only procurement for Bank fianmced works has
to be acceptableto the Bank.
4.13
SeetorPolicies. Perhapsthe natureof the instrumentis less
important than the increased emphasis on policies pursued by the Bank.
But policies concerning aspects otherthan investments are also discussed
more effectively
duringpreparation
and implementation of sector loans
than project loans. The dialogue for sector loans has raised the awareness of the importanceof policyimprovements,
even if the improvements
remained elusive.
More people realize that benefits can be obtained
through policy reforms, even without public expenditures.
Bowever, the
dialogue has probably not been as effective
as it could be.
4.14
Uhder highway subsector lending the Bsak has for the most part
continued to deal with the same agencies as under project lending. Some
of the required reforms transcend the sector and require not only involvement but also commitment by higher level national policy agencies or
otheragenciesinterestedin the reforms.
For instance, a ministry of
financemay changeroaduser charges,a ministry of trade may be effective in pursuing trucking deregulation,
reforms that a ministry of transport could or would not carry out. Adjustment lending has broadened the
dialogueto includeotherappropriate
agencies.
4.15
Policyreformssoughtthroughsectorlendinghave tendedto lack
focusand clearpriorities.In additionto improvedinvestmentselection
criteriaand increasedroadmaintenance
allocations,
most highwaysubsector loansseek to improvethe road user charge system to improvefunding
mechanisms for maintenance, to shift works from force accounts to contractors,
to improve or privatize
government-owned bus and trucking companies, to deregulate the provision of public transport services,
to
rationalize
the civil service, and to change axle-load regulations.
Some
sector loans included action programs listing no less than 70 conditions,
in turn irqlying further actions.
The levels of the measures span the
whole spectrumfrom broadpolicyobjectives,
such as adequateroadmaintenancefutding,to detailsof implementation,
such as a specifictax
increaseat a givendate. Governments
couldthen complywith some of the
less difficult,normallyless importantsteps,like engagingconsultants.
Actionprogramsare nevertheless
a considerable
improvement
over traditionalcovenants seeking policy reforms, that were largely i:nocuous,.
sometimeslimitedto requestinga study.and sometimeseven including
successivestudieson the same topicin successiveprojects,withoutany
actiontakenon the previousstudyconclusions.
37
-
4.16
Transport sector lentding operat'Jns need bettercoordination
to
avoid conditionality
"crowding out' in a country.
Most of the countries
thatbad transport sector loans also had program type loans, at about the
same time Transport sector related reform is rarely a priority
in adjustmantor programloans;overlapping
has occurredalmost exclusively
in
programs for Sub-Saharan
countries
where transportrelatedproblem had
serious fiscal implications,
for instance low fuel taxes or railway deficits. The mcro-economic conditionality,
correctly so, tars priority
over other conditionality
and cannotbut be selective;
that coanditioality lessensgovernmentpriorityattachedto other,sectorrelatedconditionality.The Bank has on occasionadviseda governmentsimltaneously
to reduce recurrent expenditures and to increase road maintenance expenditures -this, of course, does not need to be inconsistent
but requires
detailed analyses and discussions with a government. The 'macro team' of
the Bank sometimesconsiderssomedesirablesectorreformsto be too
sensitivepolitically(forinstance,those involvinglaborissuesor
subsidies)to mentionin theirdiscussions,
while the sectorstaffis
stillexpectedto discussthese. Fungibility
of fundsacrosssectorsis
promoted by different
stringency of conditions attached to loansand
different views as to what is needed for conditionality
compliance, in
the various sectors.
Thus, sector loan funds are not used nor reforms
achieved,howeverwell preparedthe relatedloansare, becauseof the
convenience
of other Bank loans.
4.17
Institution
Buildint. In the 19706the Bank assistedagencies
in becomingself-sufficient,
even in establishing
maintevance mmaagement
capabilities.
In the 1980s the focuswas increasingly
on management,
policies,
programming and on supporting the private sertor to take over
the executionof works and provisionof services. Bank interventions
have shiftedprimarilyto an upstream,higherlevel;the technicaldialogue does not seem to be weaker, but different.
Considering technical
aspects,discussions
centeredon appropriate
road designstandardsfor a
countryinsteadof thosefor one roadproject,or on roadmaintenance
strategiesinsteadof a specificmaintenance
actionoftenrecommended
by
consultants.On the economicside,discussions
focusedon appropriate
methodologies
and their rationale,
on policieswith country-wide
implications,suchas regulations
or the correctsettingof road user charges.
insteadof on the cost-benefit
analysisof a particular
project,usually
preparedby consultants.The objectivewas to establishsounddecisionmaking principles
as compared with the earlier orientation
of perfecting
the investment analysis of a small number of projects.
4.18
Broadadoptionof improvedprocesses,standardsand strategies
may be slow. Projectpreparation
qualityway be lessenedinitially,
as
relianceon consultants
decreases,but the longerterm institutional
benefits appearedto outweighthesecostsand delays. Consultanti
can
stillbe employedfor trainingof ministerial
staff,supervision
of contractors
and other tasks.
Policy measures are more supported by officials who have gone through- the analyses than by officials
simply receiv
ing advice.
_ 38 -
4.19
Ltdnas Amoutts and Disbureemets.
AS can be expected, the size
of transpott sector loans has typically
exceeded the amounts of preceding
project loans. The difference has been up to three times the amount
of
traditional
project loans in the same country.
In some Latin American
countries,
highway subsector loans for up to US$ 200 million were equivalent to between 5 percent and 15 percent of the highway investment
program they supported. In Sub- Sahara African countries,
the Bank s sector
loans -smaller, some not more than USS 30 million- have represented more
than 20 percent of the road investment program, with an even larger
impact as they were usually
instrumental
in reducing the investment
program
and in mobilizing cofinancing.
In smaller countries,
and more recently,
sector loans have become multinodal in orientation.
One leading operation
covered what usually took three or more projects in the areas of ports,
highways. railways, civil aviation and others, this also increased
loan
amounts and cofinancing.
4.20
Disbursements
under sectorlendinghave not been as fastas
expected.Still,annualdisbursement
averagesunder sectorloanswere
generally higher than underprojectloans in the same country.
Disbursement periods tended to be shorter, though in somecasesjust marginally.
Delaysin effectiveness
and until the first disbursement is made were
similarunderboth types of projects.
Disbursements have normally been
faster the first year
of second of subsequentsector loans in a country,
when sector loans can provide retroactive
or continued financing
works started under the previous sector loan. These are the only
ces of genuine time slice financing as was foreseen under sector
Factors that caused disbursement delays includeds
*
Standard procurement rules in most countries are not
acceptablefor Bank financing.Thus,the Bank can
rarelyfinancea percentage,
say 10 percent,of
every expenditure
underthe investment
programthat
Constitutes'theprogram'underthe sectorloan.
Instead,some projectsare singledout to follow
Bank procurement
rulesto be financedat a higher
disbursement
rate,say 50 percentbut on occasion
not higher than 30 percent, over the full implementation period.
Bank rules and conditions on occasion reducedpublicwork officialsinterestin resorting to Bank financing.
*
Projects financed under a sector loan were often not
identifiedearlyon. At negotiations
only the projects to be startedduringthe firstyearwere
agreed. The flexibility
allowedfor laterselection
of future year, Bank-financed projects -- considered
to be a main advantage of sector lending-- seems to
be unnecessary and-actually,
to be a disadvantage as
it resultsin delays. Only afterselection,are
Bank procurement
proceduresinitiated.
for
instanlending.
-
*
39 -
Structural
adjustmentloansor generally,balanceof
paymentsupport.thatconveysignificant
amountsin
foreignexchange,and domesticearmarkingsystems,
can 'crowd-out'
sectorloan proceeds. They reduce
the need for foreignexchange under other loans and
may release an equivalentamountin domestic currency. Only domestic currencyis neededto pay for
civilworks in countrieswith a well developed
domesticcontracting
industry,and easier,local
procuremeat
procedurescan be followed.
4.21
Ecgono_Asia Bank StaffT?e. While staffinputper dollarlent
seemsto have decreasedwith sectorlending,a sampleof stafftime records for projectsapprovedsincePY82 providedno evidencethat sector
loans were less staff-intensive
than project
loans, as was initially
expected.
It is difficult
to separate 'noise'in the statistics:
preparation and appraisal time tended to decrease the longer the Bank's Involvement in a country. Overheads per project (such as mission travel and
sector work) decreased with the number of projects and large countries
had more projects than small ones. Supervision effort were usually considerable during the initial
phases but often decreased in subsequent
years. Sector loans were normally implemented in parallel with other
transport projects in countries well known to the Bank; nevertheless
a
few observations on their staff cost can be derived from the sample data.
4.22
Annual transport staff intensity varied over time, partly reflecting stagesreachedin projectcycles. If only becauseof their
size, large countries tended to receive more lending and also more staff
input.
Amongcountrieswith sectorloans,Braziland Mexico have had up
to 250 staffweeks in one year;Colombia,200;but in otheryears,only
about 100 staff weeks. The range of staff effort was similar in Asian
countries and lower in Africa, where the upper limit was som 1S0 staff
weeks one year (Ghana), and the lower limit, less than 50 staff weeks.
While the effort appears to have been adequate, perhaps even excessive,
in large countries,
there are indications
that it was less adequate in
smaller countries
Their problems are however equally complex, the institutions
are lessmature,and projectshave becomemore comprehensive.
On the otherhand, smallcountrieshave less absorptive
capacityfor Bank
missions,so that selectivity
is requiredin discussions
with officials.
4.23
Econamists'
time for adviceexpandedwhile that for cost-benefit
analysesand auditsdecreased.
Engineers'time for discussing
broader
technicalmattersincreasedalso. However,engineersassignedto large
LatinAmericancountrieswherethereare many and relativelysmallprojectsin the investmentprogram,spentmuch time in reviewing contracts
for Bank financingeligibility
and subsequentdisbursement
requests.Tn
Colombiaat one time 160 contractswere being followedunder one loan;in
Mexico,some 100 contractswere reviewedand only a few foundeligible.
Less timewas left for fieldtripsto inspectproposedprojectsor ongoing works.
4.24
Monitormn. While project definition
through lending have changed, and supervision
and objectives
sought
efforts were adapted,
-
performaee
largely
indicators
remain
40
and supervision
form used in reportingprogress
the same and are not very
informative
on sector
lending.
Performance indicators
focus on loan amounts disbursed. A project is
consideredas delayedwhen disbursements
lag behindestimates,
and as
completedwhen the loan has been fullydisbursed.Data do not allow
to
link disbursements
to physicalprogr6.sof works,even lessso with
contractsfinancedunder successiveloans,in time slices. The closer
scrutinyof costsand unit costsdone underprojectloansbecomeserratic
or uncertain under sector loans. However, as subprojectcost
estimates in
investmentprogramsare generallyless accuratethan thosein project
loans,it is not very relevantto compareactualcostswith an initial
unreliableestimatein the program.Generally,no reportingis made on
subprojects
not financedby the Bank.Even thoughpolicyreforemay be
the more importantobjectiveof the operation,the currentpage on
compliancewith loancovenantsin supervision
reportsis ratheruninformative;the 'beingcompliedwith, statementis usuallyof littleinformative value.Progresson broad gaugedreformsis difficultto ascertain;
even progressachievedthroughspecifieddetailedactionsmay not be
clear.
B. Suan*stions
for ImorovimaSectorLendina
4.25
The Bank has been imaginative
in findingnew ways to enhanceits
effectiveness,
but, basedon the abovereview,the designand implementation of transportsectorloanscouldbe furtherimproved.The numberof
projectsper countryand sectorthat the Bank can processis limited,so
that the desiredfrequencyand miz of lendinginstruments,
strictlydefined,may not be feasible. Thus,the distinction
betweenlendinginstrumentswill remainblurred.Other than that sectorloansnormallyfollowinga seriesof projectloans,thereis no uniqueprogression
in type
of lendinginstrument.The importanceof what lendinginstrumentis
chosenbecomesmarginal,and what matters,is to clearlydefinethe relative prioritiesamongobjectives.
4.26
Bank CountryStrategy. To avoid 'crowding-out',
increasedinternalBank coordination
includinga better,more consistentfit of sector strategywith thatof other sectorsand the country-wide
strategy
followedfor all Bank lendingmay help pursueonly the most important
objectives;
to ascertaincomitment to thoseobjectivesand readinessto
act in the country;to identifythe appropriate
agenciesto dealwith
regardingthe problemsselectedfor discussion.This internalcoordinationmay requireignoringtraditional
sectoralboundariesestablished
in
the Bank. Decisionsshouldalso take intoaccountthe relativeimportance of the Bank'spresencein,thesector. The Bank shouldbe morewilling
to act upon defaultand also to recognizewhere lendingis not justified.
The underlyingidea shouldbe to rewardthe goodperformers.
-
41
-
4.27
Sector LeudiU -ProcOUditiOsl.
The OMS preconditions
havebeen
followedfleziblyand shouldreman indicative.Some suggeostions
on
theirinterpretation:
*
The 'adequatesectorinstitutions,
precondition
shouidperhapsbe somewhatrefocusedon 'people'.
Pailure or successseem to have dependedthe most on
the convictionor lack thereofof key managersin
chargeof the importanceof the objectivespursued,
and less on technicalor administrative
abilities.
Uncertainties
of managementreorientation
can hardly
be avoided,but the 'appropriate'
orientation
should
prevailat the time of the decisionto proceedwith
sectorlending.
*
The 'goodinvestment
program'precondition
shouldbe
expanded to include the expenditure program, to
improve maintensace versus capital allocations
and
not distortfundingchoices.Physicalwork programIng to match investment programming and budgeting,
should be introduced
wherenecessary.Extra-budgetary itemsor decentralized
budgetsshouldalso be
reviewed.
*
The 'adequateprocurement and disbursement procedures' precondition
shouldbe convertedinto a sector
lendingobjective.Sectoror even country-wide
prototype procurement documents should be developed
where existing procedures are found to be inadequate. The Bank's continued role in this respect should
be to help introducing procurement arrangements
which yield optimal benefits to a country and which
are in line with international
'good practice'.
*
The 'agreement on policyand institutional
measures'
precondition
shouldremain, and implementation be
reinforced with appropriate lending incentives,
as
discussed below.
4.28
Obiectivesand Conditionality.No sectorloancan realistically
be expectedto achieveall the reformsneededin the sector,and which
makes it all the more importantto identifythe key reformsand their
introduction
sequence.The Bank shouldestablishlong-termstrategies
with a successionof objectivesover time,knowingthata seriesof loans
will be made, and maie each loan conditional
on a differentset of objectives. Objectivesshouldbe clearand statedat a relatively
high policy
level,in tormsof processesor criteriawith lastingeffectratherthan
in termsof discreteactions,but with a specificactionplan to introduce the processes(e.g.ad-valoremratherthan specifictaxes;prototype
biddingdocumentsratherthan documents for a specific contract).
Ac-
-
42 -
tend to understand much
count should be taken of the fact that officials
better coveanmts stated in terms of specific and simple actions than
those
stated
in terms of policy
objectives.
Front-end loading has been effective but steps required after
4.29
Annual tranches that can
the loan is approved are sametimes not taken.
only if the threat of
either be released or cancelled can be effective
is meaningful. On the other hand, governments have taken
cancellation
and loan
board presentation
negotiations,
steps required for appraisal,
highway
annual
of
Series
with
delays.
if
somtimes
even
effectiveness,
loans
subsector
can limit
covenants
mostly
to project
execution
matters,
Lending with
as in Thailand.
and make monitoring considerably easier,
on cerannual approvals of agreed supplementary financing, conditional
tain actions being taken -similar to tranching but without the commitment
These options would avoid the
fees- may also enhance effectiveness.
covenants that occurs when seveof policy related
overlapping
confusing
They
ral projects in one sector are being implemented simultaneously.
would also reduce commitment fees, avoid the need for eventual loan cangive more weight to dated, required chanand in particular,
cellations,
ges, and prevent quick disbursements from undermining conditionality.
Monitoring would be much easier. The disadvantage consists largely of
increasing legal work, or perhaps, a need for slight changes Board procedures.
The experience record with implementing transIolemtnation.
4.30
as
the need for some procedural imptoveients,
loans
suggests
sector
port
follows$
*
if the Bank financesspecificsubprojects,disburhigh, to
sementratesshould be fixed relatively
or
by negotiations
make Bank financingattractive;
subprosoon thereaftereven thosenew construction
jects to be startedin futureyears shouldbe identheir implementation. This
tified,
to accelerate
programis
shouldbe easy sincethe investment
Overallbudgetfinancingof
agreedat negotiations.
the executing agency should be tied to progressin
implementing a sector loan.
to improve the policy dialogue and the
more stafftime
follow-upon projectimplementation,
may have to be allocatedfor smallcountries.The
mix of expertsmay need
questionof appropriate
reviewing.
* in order
4.31
HonitorinK needs to be improved.
Following
suggestions
offereds
* Cost monitoring.
also inappropriate
It is impractical and possibly
to apply standard Bank procedures
are
_ 43 -
for monitoring the costs of civil works in sector
The loans often deal only with a time slice
loans.
of the investment, with completion being the ultimaof the borrower. The financed
te responsibility
It is imporsections can cover numerous contracts.
tant, however, to help foster such monitoring by
Thus, secgovernments of other sector investments.
tor
loans
should
the responsible
strive
agencies.
to develop
mechanisms
for
This would also serve
costs without imposing
Bank purposes for monitoring
a separate
system of reporting.
Such a system
should relate to physical
are often missing.
execution
parameters
which
given
This is difficult
reform monitoring.
the often broad objectives provided in the loan
documents, especially when there are a multiplicity
Front-end loading of major reforms
of conditions.
At least, key policy resimplifies
supervision.
forms should be isolated for monitoring if actions
are required during the course of the project.
*
Policy
*
Annual investment reviews.
The quality of the annual investmentreviews,and theireffectiveness,
should be enhanced and required supervision time
provided.
The TDs shouldactivelyfollowthe trackrecordof individual
4.32
sectorlendingoperationsin theirregions.The annualARTS exercises
providea uniqueinstrumentfor thispurpose.Pervasiveimplementation
problemsshouldbe identifiedand remediesbe soughtto ensurethat the
under such lendingcan be achievedto the maximumextentposobjectives
sible.
*
The questionfinallyremains:What do borrowersget out of sec4.33
The anstor lendingand do theseadvantagesoutweighthe disadvantages?
at the country
wer is generallypositive,althoughthe main beneficiary
level is the ministryof financewhich is able to use the Bank as an
of
and influencethe shapeand composition
honestbrokerto scrutinize
plans.Thereis also an elementof prestigeattached
sector expenditure
to sector lending. Graduation from project to sector lending confirms
competent and generally well run.
that the sector agency is technically
and
Failureto graduate,on the otherhand,impliespoor performance
costs
reducesthe likelihoodof externalsupport.Thereare nevertheless
attachedto sectorlending.The need for more objective project selection
to the Bank,reducesthe scopefor usingtransport
criteria,satisfactory
to advancethe domesticpoliticalagenda, while the Bank's
expenditures
emphasis on promoting wide-ranging policy reforms as part of sector loans
problems. Overall. however, sector
is likely to cause some transitional
over the longerterm,
lendingdoes offerpositivebenefits,particularly
_ 44 -
-while
practices
and operating
when the advantages of improved planing
pay off.
to
Start
initiallyIntroduce
to
painful
V. STAI= !ESO'RCUSin TUANSPo?
together with the shifting emphasis to sec.
The reorganization,
5.01
raised the issue of what types of techni_
has
lending,
type
tor/subsector
transport lending and sector work iniserve
to
required
are
cal skills
should be rewhat types of professionals
and more directly,
tiatives
two schools of thought within
cruited by the Bank. There are basically
the Bank concerning the implications of a reduction of technical-engi.
It is agreed that there has been a trend developing
neering expertise.
over the last ten years in which the role of economists, including may
whose backgrounds are more akin to transport planners and genoral engirelative
and supervision responsibility
neering, has risen in preparation
this is
whether
over
is
The disagreement
to that of the modal engineer.
policy
of
types
the
that
argues
thought
of
One school
a positive trend.
perspective.
economic
an
require
addressed
be
to
issues
and institutional
loans to an lndividual
Moreover, after years and a series of transport
to design and to procuregard
with
especially
expertise,
local
country,
rement, has improved such that government staff can take on more of the
for preparation and supervision.
responsibilities
Transport.Sector Staff
ORAPHS
Composition
(status as of June 30,1989)
TranspowtEconomists
Teba. Specialsts
slector stadl
Finacial Analysts
r
Number
sI
10-
--.
L
0
Africa Asaa EMEMA LAOCEDI
TotalSector Staff
Transport Economists
Financial Analysts
Techu. Specialists
34
34
26
8
7
19
14
6
14
9
4
13
26
9
6
Hots:Tehnili Sia
Enulneer
0
I PPR
2
4
10
1
0
4.
0
0
3
0
7
1
1_,lisud
-
45 -
The other school of thought argues that the technical expertise of the
trademarkand,while the roleof
Bank in trasport is the institution's
the engineer may have changed. the need for the engineer has not. We
technical components
are dealing increasingly with more sophisticated
locomotive maintenance or pavement
whether it concerns port operations,
marAgement. Even thoughsuch issuesmay take a back seat at present to
and policyreforms,this aspectshouldnot be
the broaderinstitutional
lost and should be of increasing importance in followingup on such reand
forms. Indeed, given the record of the Bsank in the institutional
policy areas, it has been the technical area that has achievedconsistent
development impact.
success with substantial
5.02
The following discussion attempts to clarify the situation and
to help stimulate internal Bank discussion on this important issue. To
propose detailed recomeandations is not possible with the information
and is beyond the scope of this Annual Report. Furthermore,
available,
sector into the otherhardware
the discussion goes beyond the transport
sectors and the role of the engineer in the Bank in the medium and longer
term. Much of the information was compiled for a PREVPstudy on the Cost
of Doing Business in the Bank, a draft of which is available.
of transport projects since FY81 showed that the cost
A revir
5.03
of lending to .e sector, measured in staff-weeks for Bank staff and
expendedfor the total of
has not changed. The staff-weeks
consultants,
and supervision of a project in FY89
appraisal,
negotiation
preparation,
is roughly the same as a project in FY81 with some variation between
Supervision did
appraisal and preparation due to changing procedures.
show a slightupwardtrend,at leastin the earlieryears of a project,
and this situationshouldbe monitoredas the FY87-89projectsprogress.
it was not possibleto breakdown the data by economisttimeversusengineering time, but interviews with staffconfirmedthe tendencyto depend
more on economists.
5.04
Recruitment
policiesby the 23 Infrastructure
Divisionsvary but
engithere appears to be a tendency to replace retiring or transferring
neers with economistsor other expertise which crosses sectors, enhancing
fungibility
within the relativelysmalldivisionscreatedby the reorganization. Thus, in FY89 there were four modal engineers who retiredor
passedawaywhich did not leadto new recruits.While it is truethat
about20 percentof existingtransportstaffenteredthe Bankwithinthe
last 6 years,only about5 percentof the transportengineersenteredthe
of the changingroleof the engiBankwithin thatperiod.One indication
neer is the increasein the dependenceon consultants.Consultantstaffapfor projectpreparation,
weeks as a percentageof totalstaff-weeks
praisal,negotiation
and supervision
hoveredbetween13-18pereentfrom
FY81-86and between19-21percentfromFY87-89. It is apparentthat the
SOD'slook for consultants
to providespecialized
technicaladviceas
well as using retiredBank engineersfor preparation and supervision.
The shift is clear and the probability
of a further shift is extremely
high with over 30 percentof transportrelatedengineersand specialists
are due to retire within 6 yearscomparedwith 7 percent of infrastructure economists and financial analysts.
IRANSPOtAT
lzil
Avers" Costs iW) per Project for Preparation, Appraisl, motlations
......................................................
........
.........................
HighwaySRaiwuaYs Ports
.....
..............
............................
.............
............
........
.........
i
ys Railw s
........
........
Tranpo t
.........
..........
............
........
.............
.......
.............
tailways Ports
HiW a
Iraport
Transport igohmaysRailways Ports
.........
.....
A1dli
Aile
Al"l b
Alled
Traort
fV*
82
24
32
30
24
29
20
26
40
64
23
31
38
42
49
41
40
43
32
55
63
84
Si
'S8
56
9
9
10
6
6
9
12
I1
27
S
13
t1
75
9g
61
64
36
29
47
97
.
37
70
61
9
9
10
11
91
as
*6
8?
66
09
56
23
41
45.
50
32
16
34
29
30
123
IS
53
73
64
66
44
S1
S7
43
So
31
41
26
26
37
25
26
22
23
61
36
SO
27
47
76.
47
69
32
23
10
12
14
6
10
9
11
a
11
6
13
13
I3
9
10
10
13
23
114
63
92
a
92
81-86
34
25
52
411
43
36
59
So
9
a
12
10
as
V;t. Aerag
7-0
4S
It
6
52
31
24
38
44
12
t0
U
146
n1
..................
...................................................................................
.....................................
I................
.............................................
.....................................
TOTAL
megotiatins
Appraisal
Prpration
Ports
.....
9S
70
120
i1
175
61
75 * 121
19f
7S
S7
51
116
71
62
113
124
61
79
102
104
69
123
116
&A
II ItO
19
1S1
1I
131
102
69
Ut. Averag
.......................
*
51 of loa
i lTnsort
aprval.
also Incldes a few projects not classified by transpot
.
.
-
47 _
5.05
Althoughit was not possibleto draw conclusions
on this issue,
one can fommulatesome initialimpressions:
*
The high proportionof retireaents
by engineering
and specialiststaffin the sectorcombinedwith the
requiresa
tendencyof SOD's to recruitgeneralists
regionby regionreviewof its technicalrequirements and staffing policies.
*
It is apparent that some of the problem is related
to the fact that the type of expertise required is
hard to recruit into the Bank, i.e. transport professionals with managerial experience, which then
leads to the dependence on consultants;
*
As the core of technical staff shrinks, it is highly
important that the regions coordinate their recruitment of such staff and that there be more fungibiliProcety of technical staff time between regions.
this are requiredso that an
duresto facilitate
in one regionwith a particuengineer or specialist
lar expertise can be used in another region without
substantial
bureaucratic
effort;
*
A stronger commitment to training through more adeis needed so thac staff can
quate budget allocations
stay abreast of current developments in the field.
requires staff to be
The dependence on consultants
vell-informed
of the stateof the art so that they
can recognize when they have a serious technical
and
issue and the type of expertise required;
*
Care must be taken to maintain the Bank's technical
integrity
in the sector and to sustain its seat at
organizations
and its
the table of professional
the leadership of the technical
dialogue vis-a-vis
Indeed the poliministries
in its client countries.
cy dialogue in transport was built upon the respect
gained
through
its
technical
dialogue.
*
*
*
TRANSPORTSECTOR
FY89 ANNUAL REPORT
STATISTICALANNEX
TRANSPORT FACTS AND FIGURES
WORLD
r
WA,/Milw
/ Muimo
I
s
/ban Tr sport
S
48
TABLZ 1
PY89DSDICAD TUANSPPORLENDINBOPERATIONS
ReIion
Cosnary
ProJect
Africa
Chad
Ethiopia
Gabon
Uganda
Zaire
Transport
SECAL
Transport
Road Maintenance
Railways I
Transport RehabilitationI
Asia
China
Ningbo & Shanghai Ports
Xiamen Port
Highways V (ShandongProvince)
Lending
Amount, Type
(US$,million)
India
State Roads I
Korea
Nepal
Thailand
Road Improvement
Arun III Access Road
Highway Sector II
76.4 IBaD
36.0 IBRD
50.0 IDA
60.0 IBRD
61.0 IDA
80.0 IDA
70.0 IBiD
80.0 IDA
170.0 IBRD
200.0 IBRD
32.8 IDA
87.0 IBRD
Algeria
Hungary
Yugoslavia
Ports III
Transport II
Railways VII
63.0 IBRD
95.0 IBRD
138.0 IBRD
Bolivia
Chile
Guatemala
Uruguay
Export Corridors
Urban Streets & Transport Program
Secondary/Regional
Roads Rehabilit.
Transport I
Highways VI (JiansziProvince)
Inner Mongolia Railways
EMENA
60.0 IDA
72.0 IDA
30.0 IBRD
7.0 IDA
75.0 IDA
LAC
Total
Lending:
37.0
75.0
31.5
80.8
IDA
IBRD
IBPj
IBRD
.1767.5
Number of Projects: 21
Modal Shares: Highways
Ports
Railways
Malti-Modal
Urban Transport
8
3
$
6
1
- 38Z
- 14Z
- 142
- 29Z
*
5S
_ 49
TABLE 2
Page 1
Th4SPR?RLTED LENING O1PEATION
(Scheduled Lending Program FY90-FY93)
A.
Afl
Countir
Proiect
Angola
RehabilitationCredit
Urban ITfrastr. Rbehabilitation
Transport Sector
Benin
Urban.
Burkina Paso
Burundi
.Lndina
Amount, Type
(U3$,million)
p*
80.0 IDA
25.0 IDA
30.0 IDA
90L
91R
921
9.5 IDA
92R
Urban
Transport
SECAL
Public Enterprise
21.0 IDA
15.0 IDA
30.0 IDA
90L
91L
93L
TransportSector
51.1 IDA
90L
Transport Sector 1I
24.7 IDA
931
CAR
Transport Sector
Enterpr. Rehab. & Developm.
9.7 IDA
10.0 IDA
90
91S
Cameroon
Rural Infrastructure
Transp. ParastatalAdjustment
100.0 IBRD
80.0 IBID
-90R
93S
Chad
Urban
20.0 IDA
93L
Comoros
Road Maintenance
Multi Sector
4.9 DA
12.4 IDA
91S
92R
Congo
loads Rehabilitation
Private
Sector Development
Urban
Transport Sector
27.0
20.0
25.0
30.0
IBID
IBRD
IBRD
IBRD
90L
91R
92R
93S
Cote D'Ivoire
Municipal Development
Rural Sector Support
Urban IV
Transport SECAL
'66.0 IBRD
10.0 IBRD
100.0 IBRD
100.0 ID
90L
90L
92R
938
Djibouti
Urban Development II
4.5 IDA
92R
Eq. Guinea
InfrastructureRehabilitation
10.0 IDA
93L
jJ
e
~so -
%AB=L2
Page2
mtrZand
Ethiopia
IMUM
Amount, Type
(US ,million)
Integr.Urban/Rural
Develop..
I
40.0 IDA
90L
Towns)
Road Sector III
60.0 DA
92S
Gabon
MunicipalDevelopment
20.0 IBID
92L
Ghana
TransportRehabilitatioa
U1
Urban II (Sec.Cities)
Feeer Roads
Urban III
50.0 IDA
30.0 IDA
23.0 IDA
35.0 IDA
91L
91S
921
938
Guinea
PrivateSectorPromotion
SecondUrban
Nat'l Rural Infrastruceure
Urban III
Infrastructure
35.0 IDA
20.0 IDA
35.0 IDA
5).0 IDA.
30.0 IDA
90L
90L
915
93L
93S
GuineaBissau Infrastructure
Rehabilitation
22.0 IDA
90L
Kenia
Urban Transport
Ports
Rural Roads
50.0 ID&
20.0 IDA
25.6 IDA
91L
92L
931
Lesotho
Rural Development
10.0 IDA
93R
Madagascar
Tana PlainDevelopment
TransportSectorDevelopnt
40.9 IDA
31.0 IDA
90L
92R
Malawi
Infrastructure
I
Urban IT
28.8 IDA
15.0 IDA
90L
92S
Mali
Infrastr./Transport
SectorI
10.0 IDA
93S
Mauritius
llghways IT
30.0 IBRD
90L
Infrastructure
Environment
10.0 IBRD
92R.
TransportRebabilitati&.
(BeiraCorridor)
Road Transport
Urban Rehabilitation
II
UrbanServices
40.0 ID
40.0 IDA
70.0 IDA
30.0 IDA
90L
91L
92L
93R
TraaqportSectorI1
Urban I
33.0 IDA
20.0 IDA
925
938
(HZrket
Mozambique
Niger
-
51
-
TABLE2
Page 3
CouS3Z
wpraoect
Nigeria
LeudLUE
Amount, Type
(US$,million)
Oyo State Urban
21.0 BIDD
29.0 IDA
125.0IBi
150.0IBRD
100.0IBRD
200.0IBRD
loads (MultiStats)
Ralway
Rural Infrastructure
Lagos Infrastructure
py
90L
9L
921
93L
93L
Rvanda
TransportSector
PublicEnterprises
CommunalDevelopment
32.2 IDA
14.7 IDA
38.3 IDA
90L
91S
92S
Senegal
PublicWorks & Employment
20.0 IDA
90L
Transport SECAL
45.0 IDA
91S
PrivateSector
20.0 ID
931
Seychelles
Multi Sector
4.9 IDA
92L
SierraLeone
HighwayRehabilitation
28.5 IDA
92R
Somalia
Infrastructure
I
HighwaysV
Infrastructure
II
16.0 IDA
16.0 DA
17.0 IDA-
91S
911
92S
Sudan
HighwayRehabilitation
PortsIII
HighwaysIV
ailwmays
VI
82.2 IDA
30.0 IDA
40.0 IDA
40.0 DA
90L
91L
93S
93S
Swaziland
Urban I
Zomati Basin Development
18.0 IBRD
50.0 IBRD
92L
92R
Tanzania
Roads I
Port Modernization
RalwvayRestructuring
Public Sector Management
Urban/Infrastr.
Rehabilitation
Roads IT
.
146.0 IA,
30.0 IDA
45.0 IDA
150.0IDA
30.0 IDA
50.0 IDA
90L
90L
9IR
92L
92S
93S
Togo
Infrastructure
SECAL
TransportSector
15.0 IDA
15.0 IDA
91R
92L
Uganda
Infrastructure
64.0 IDA
TransportSectorRehabilitation 40.0 IDA
Area Development
30.0 ID
918
92S
93R
32~~~~~~~~~~~~~~~~~~~A
52
.
-
TABLE 2
Page
Amount,Type
(US$.million)
Zaire
Urban I
Tranport
Sector
Ifder Roafs
Infrastructure
Tranport
Facilities
Kivu
Zambia
Zimbabwe
Regional
Highwys
IV
Multi Sector
Multi Sector
Railways V
Transport
Development
I
II
Railways II
Urban Transport
Coumunity Area Development
Uc
50.2
98.1
29.4
50.0
19.1
IDA
10a
IDA
IDA
90L
9gL
9ID
92L
931
66.4
IDA
93R
25.0
80.0
60.0
30.0
20.0
mI
IDA
IDA
IDA
IDA
911
91R
921
921
921
20.0 IBID
20.0 IBID
30.0 IBRD
91S
92L
931
B. ASIA
Bangladesh
Inland Water Transport
Public Resources Management
Jar'a Bridge
Nat'l MHunicipalDevelopment
Burma
Infrastructure Rehabilitation
China
Medium Size
Shraghai
Railways
Jiangsu
Cities
Troasport
V
Provincial
Transport
Tianjin
Urban
Zhejiang
Provincial
Honan Highway
Jiangsu
Transport
VI
Railays
Anhui Poincil
Jiagsu
Highway
IT
Transport
Transport 1I
IDA
IDA
IDA
IDA
g1S
92S
92S
93S
45.0 IDA
90L
40.0
150.0
100.0
60.0
80.8
79.4
5S.0
400.0
50.0
100.0
100.0
240.0
150.0
IDA
IBRD
IDA
IBRD
IDA
IBID
IDA
IDA
IBID
90L
90;
90L
90L
91L
911
91L
150.0 IBD
918
100.0
90.5
150.0
130.0
921
IDA
IDA
IBD
IBJD
92L
92S
4
-
53
-
TA_B_LE
2
Page S
COUIE
ivofel
Amont, Type
(US$,aillion)
(cont'd)
C
Shanai Port
150.0 ID92S
Guangdomg Pro cial TranSsport 130.0 IBD
Iand Wateways
130.0 mD
Railways VIZ
175.0 IBID
ShanghaiUrba Infrastructure
25.0 IDA
75.0 IBiD
HighwaysVI1
200.0 IDID
Fiji
Rural Development
Transport
(Regional)
India
National Highways II
Karnataka Urban Transport
py
93L
93L
93L
93L
93S
10.0 IBIRD
20.0 IBI
93L
938
90L
Port Kodezuization
Bombay Urban Transport I1
National Highways III
230.0
mD
80.0 IDA
70.0 mm
100.0 IBRD
100.0 IDA
100.0 IDA
230.0 IBD
100.0 IA
100.0 IBRD
200.0 D
100.0 ID
200.0 IBID
93L
93L
93L
93L
Indonesia
Highway Sector
East Java/Bali Urban
Jabotabek Urban Developm. III
Large Cities Urban
Urban Sector II
Irian Jaya Area Development
Transport I (Maritime)
Highway Sector II
Rural Roads III
Kalisantan
Urban Transport
300.0 IBRD
100.0 IBRD
60.0 IBRD
200.0 IBRD
250.0 IBRD
30.0 IBID
150.0 IBID
275.0 IBRD
200.0 IBID
50.0 IBID
90L
91L
91L
92L
92S
92S
93L
93S
93S
93S
Korea
Urban Land Development
Pusan Port
Ezpressways
250.0 IBRD
100.0 IBBD
100.0 IBID
91L
92L
93L
30.0 IDA
91L
101.8 IBID
60.0 IBID
90L
91L
Container TranSprt
Kerala Urban
HP Urban Development
Railways 6odernization
IV
MaharashtraUrban
*
II
Laos
Highway Impov
Malaysia
Road & Bridge Rehabilitation
port Relang II
t
90L
91L
91L
92S
92S
54
_
-
Page 6
Ledm
=
Amount, Type
(US$,million)
Coustr
PrOUct
laldives
Male Intenational ALport
Nepal
3.0 IDA
90L
lti Modl Transport
Public Resources Management
Local Development Fund
21.0 IDA
60.0 IDA
25.0 IDA
918
923
93S
Papua NG
TransportImprovemt II
40e0 MIRD
931
Philippines
Municipal
Trausport
Sri Lanka
Local Government Development
Road, III
Public Enterprise Restructuring
Transport I
25.0
40.0
60.0
25.0
Thailand
Highway Sector III
Inland Watervays II
93.0 lI=D
40.0 Il=D
90L
92S
135.0 IBMD
l0o0. IUID
100.0 IBID
150.0 IBID
92L
92L
931
93L
50.0 IBRD
50.0 IBRD
50.0 IBRD
90S
91S
92L
100.0TBRD
92L
35.0 IBRD
40 0 IBRD
911
93S
68.0 IBID
225.0 IBID
70.0 IBiD
100.0 IBID
60.0 TIhD
90L
91L
92L
93L
93L
Development
Sector
II
45.0 IBRD
150.0 ID
IDA
IDA
IDA
IDA
90L
92S
90L
90L
91S
91L
C. E
Algeria
Highways VI
Transport
Sector
Ports IV
Railway III
Egypt
Tourism Infrastructure
Railways III
Inland Watervays
Hungary
Ta8nsport
Sector
Jordan
Transport
Transport
III
(unidentified)
Morocco
Highways V
Public Enterprise Reform II
Port Sector
Municipal Infrastructure
Rural Infrastructure
s55
2
Page 7
TA$
Amount, Type
(USS,aillion)
Pakistan
Trnport
200.0 I=
Karachi portModerniation
90L
1,)3.0
90L
Sindh lateuediate
Highways VI
Tranport Sector Loan II
Urban (unidentified)
30.0 IDA
20.0 IBRD
50.0 I=
100.0 IID
50.0 IBID
92L
93L
93L
938
Poland
Transort
Trasport
I
IZ
150.0
100.0
II
IBD
908
938
Portugal
Transport
(unidentified)
100.0
IBD
938
Tunesia
Public Enterprises
I
Munxicipal Development
Rural
SAL
Cities
loads
Transport
30.0
Sector
Turkey
Transport
SICAL
Transport
(unidentified)
Medium Size Cities
Urban (unidentified)
Railway ZIZ
Transport
(unidentified)
Urban (unidentified)
Yemen AR
Transport
Yemen PDR
Flood Reconstruction
I
Highway Maintea nce V%
Yugoslavia
Highway Sector III
Nighway Sector IT
Transport
130.0 IBRD
50.0 IBRD
(unidentified)
IDU
90L
9gL
921
80.0 IBiD
92L
150.0 IBiD
130.0 IBID
150.0 IBiD
150.0 IBID
150.0 IB=D
50.0 IBID
50.0 IBRD
908
91L
92L
928
93L
93L
93L
15.0 IDA
90L
6.0 IDA
90L
12.0 IDA
92S
265.0 IBID
150.0 IBmD
100.0 IBID
90L
92L
93L
D. LATIN AMERICAhID CANDBBEAN
Argentina
Road Maintenance
100.0 IBID
91L
Provincial
Development
Publ. Enterpr.
Rationalization
250.0
350.0
91L
91S
IBRD
IBRD
-
56
T
Page 8
Counv
ProjectS
Argentina
(contd)
MunicipalDevelopment
I
Transport Sector I
Barbados
load Mailtenance
L
Amount, Type
(USS,million)
150.0 IBRD
200.0 I93S
92S
12.0 131D
931
15.5 IDA
35.0 IDA
30.0 IDA
90L
90t.
935
250.0 IBWl
100.0 IBID
100.0IBRD
200.0IBRD
200.0 1313
100.0 IBID
100.0 3I13
200.0 I9RD
90L
90L
90L
9lL
92L
92S
93L
93S
load Sector 1
Port Rebabilitation/
Intemodtal Transport
Gas Pipeline
224.0 13R1
90L
30.0 IB)
90.0 IBRD
92L
93L
Col*ombia
RuralRoadsSector U1
Integr.RuralDevelopment
III
MunicipalDevelopment
Dept. Highway Mainten. Sector
EPM Infrastructure
Bogota Transport
55.0 IBID
90.0 IBID
100.0 IBID
120.0 13M)
75.0 IBID
60.0 IBID
90L
91L
91S
93L
93L
93S
Costa Rica
Trasport
58.0 IBID
91S
Dominican
Republic
Highway Maintenance IV
30.0 IB3
91L
Ecuador
Municipal Development
Rural Development
100.0 IBID
50.0 IBRD
91L
93S
Guatemala
Rural Investment
30.0 TBID
93L
Haiti
Transport
33.0 ID
938
Honduras
Publ. Enterpr.Adj. & Restr.
Municipal Development II
50.0 IBID
40.0 IBID
93L
93L
Bolivia
Brasil
Chile
& lRab.
S
PrivateEnterpriseDevelopment
EasternLowlandsReg. Develop..
-oad Maintenance
Hihwy Mnagement
Munic. Developm. (Rio Grande)
PrivateSectorDevelopment
StateHighways/Feeder
Roads
Port Sector
nergy Transport
CerradoTransport
Urban Sector.II(NE cities)
Sector Imnvestnt
VIIl
.
-
57 _
TABLZ 2
Page 9
.
CoxtZ
Proiect
Amount. Type
(US$,million)
PT
Jamaica
Road PlaNin & Maintenance
Public Sector SAD II
Public Admininistr.Reform 1
20.0 ID
20.0 lIBD
5.0 IBID
Mexico
Deregulation
Public EnterpriseReform I
Tranep. Air Pollution Cantrol
Rural Developmt
Transport Sector
Urban Trasport UI
Highway Sector III
Urban Development VI
Railway Sector
Port Sector V
Toll Roads
Border States Infrastructure
State Highways
500.0 IBRD
300.0 IBiD
200.0 I
200.0 IBID
400.0 IID
400.0 IBiD
150.0 XBsD
150.0 IBID
250.0 IBoD
150.0 IBID
100.0 lBD
100.0 IBID
60.0 IBID
go9,
91I.
91?L
91g
92L
928
93L
93L
93L
93L
93L
93L
93S
Panama
Ports & Railvays
Public Sector Management
load Improvam. & Maintenance
30.0 IBID
5.0 IBRD
32.0 IBID
93L
93L
93L
Trinidad
&
Tobago
Public
35.0 IBRD
91L
Uruguay
Montevideo
30.0 IBRD
91L
Venezuela
Urban Transport
Public EnterpriseReform
100.0 IBRD
300.0 IBID
91L
91S
Sector
Adjustment
Municipal
Developm.
91L
92L
9S
-
56
-
TABLIE3
w9
Resion
C01013S
LEDInG OPZAMIN-SVIITO TRANSPORT
Lendingt
Proiect
Cotrv
Amount.Type
(US$,million)
Urban It
Urban II
infrastructureRehabilitation
EnterpriseReforms
Social & InfrsatructureRelief
InstitutionalDeelopment
RehabilitationIII
Urban Rehabilitation
Trade & InvestmentPolicy Loan
Nigeria
Sao Tome & Pr. Multi Sector/PriorityWorks
Flood Reconstruction
Sudan
Pre-InvestmentProject
Togo
Public Enterprises
Uganda
Urban II
Zimbabwe
Africa
Burundi
Cameroon
Cape Verde
Gambia
Guinea Bissau
Mali
Mozambique
Asia
Bangladesh
China
Flood RehabilitationII
Medium Size Cities
India
Indonesia
Nepal
Export Development
Petroleum Transport
Private Sector Development
Municipal Development& Earthquake
EMENA
Morocco
Pakistan
Portugal
Public Aministration
Flood Damage Restoration
Tras-Os-MontesRegional Development
LAC
Braxil
Jamaica
Mexico
Municipal Development
Emergency Reconstruction
Public Enterprise Reform I
Number of Proiects:
26
Context
of Transport
133.6 IDA
80.0 IDA
79.4 IBRD
295.0 IBRD
340.0 IBRD
350.0 IBRD
41.5 IDA
23.0 IBRD
40.0 IDA
90.0 IBRD
100.0 IBRD
30.0 IBRD
500.0 IBRD
Interventions
Infrastructure(General)
Urban Infrastructure
Reform
Public Enterprise
Trade Logistics
Regional/Rural
21.0 IDA
146.0 IBaD
4.7 IDA
10.0 IDA
5.0 IDA
11.3 IDA
90.0 IDA
60.0 IDA
500.0 IBRD
5.0 IDA
75.0 IDA
5.0 IDA
15.0 TDA
80.0 IBID
Development
11 - 42?
6 - 23Z
6 - 232
2 -
82
1 -
46
_
59 .
TANS 4
F9
TANSPor? SECTORWOR
Roglo«
Cou0=
1WoAiLRTitle
Status
ABICL
Regional
Sahel Corridor
Study
Great Lakes Corridor Study
SSATP Railway Managemuet
SADCC Corridors
Viability
Urban-Rural Linkages
SS&P Human Res. & ID.
SSATP TransportData
SSATP Road Maintenance &
Rehabilitation
SADCC Airlines Review
SSATP Rural Travel and Transport
SSATP TransportManagement
A
A
A
C
C
C
C
FY89
FY89
FY89
FY90
FY90
FY90
FY90
C
C
C
C
FY90
FY91
FY91
FY91
Cameroon
Transport StrategyPaper
C mo
CAR
Transport
Strategy Note
C mo
Transport
Strategy
Paper
C FY90
Gabon
Transport Sector Review
A FY89
Kenya
Urban Transport Developm. Issues
C FY90
Mozambique
Transport Sector Survey
C FY90
Nigeria
Road Sector Strategy Paper
C FY90
Tanzania
Civil Aviation Study
Transport Sector Financial
PerfornanceReview
A FY89
Zaire
Transport/TradeStudy
C FY90
Regional
ASEAN-Reg. Transp.
A FY89
Bangladesh
Transport
China
Provincial
Transport
Urban Transport Sector
Shanghai Port Study
Railway Sect. Investm.Priorities
Coal TransportStudy
Eqtat.
ASil
Guinea
Sector
Networks
Review
A FY89
C FY91
A
A
A
C
C
FY89
FY89
FY89
FY90
FY91
60 -
-
TABLE 4
Page 2
ReSl&
22u3=
Working Titlo
Status
India
Transport
Transport
A M9
A FY89
Indonesia
Transport
Overview & Issues
Highway Maintenance
Trade Facilitation
A FY89
A FY89
A PY89
Transport
C PY90
Pacific
DME3
LAC
Islands
for liport
Strategy Paper
Review
Papua NG
Transport/Rural
Philippines
Rural
Sri
Transport
Lanka
Infrastructure
Roads Maintenance
Sector
Regional
Maritime
Hungary
Infrastructure
Transport
Sector
A FY89
Study
Envirom.
C PY91.
C FY90
Assessm.
Reviews
Sector
A FY89
A FY89
Morocco
Urban Transport
Pakistan
Transport
Sector
Poland
Transport
Constraints
A FY89
Tunesia
Transport
Sector
A FY89
Yugoslavia
Developing
Regional
East
Argentina
Transport
Brazil
Highway Subsector
Mexico
Transport/Structural
Change
Lazaro Cardenas Corridor Study
Transport
Sector Strategy Update
Enterprises
A FY89
Strategy
A FY89
Strategy
Transport
Markets
Coast Shipping
Sector
C FY90
C FY90
Enterprises
A FY89
Strategy
A FY89
A FY89
A FY89
C PY90
-
61 -
.
Case 1
Secor Lendingthat Seam to PayOff
prematuueHughway
lammigtanS huse p
aiMe
a meituuidiaopsitp.4sa
e sq"
ip_t,
aN b&uinnbma and
-
A PA
?m
is beigmdae *a impruleginascass ohhal
te ilsna
amalnSSS
Is puis ad a pM P*M b FY a a
pat" am i ae"
iP
inclded aumma po"i andInduitassi lmWsM
FY8. Emba
s
_ lei
m idib
a rfi (Ceim
uin F ed
.
nd Ming SW
bs includ sadm is supbosd 2 SECALSW d andabiMe
mp
ls
obai_d _ SAL& is paslod)i
Isis iPEb sflhftp
'a aColowebsnomrpoomtodleputish
ss
Bt
rp4e
Thflam No
isameequmsmini adsna
imgd
tma
appied to "a a *Ia
apwid In YL a mmp tpr endi a t igWaY
0"ii
i stlms wdhma.tpo
aceods0%totigappcdsupjcaM
an
a.uaikrnisamaauauuadbie.aniom.
a asaanaiambefmce.asmam
adns.M
isfaangrn
huepmedorwaorksopadeoet
aOA
oan* AushObed
umt isbyah4pucWh*
One calymaAieisssau4
his foAo.ingbudgWtym&
pujee.malmplytalmmledb
Ferpimil
stemufl
umue
.taVC omloseMm*usawin
nes
gm.
fu,s
pa_weoek
_a k be
bob
X
_PP_~~~~~~~~~~~od lot eeals
g ueci
ml c 4k*y,be_-et*p
e8
mm.andaekw withp
_phe2csa
as s
_as
tessph
f 'ml
_ we bddp~
amd
m_
I
a
inept
M
IgN
ieuouly
nder,
_
deuyoeUnIomS
n
mod
Wm
11U
i*
n
n
ii
h ifvmmfri
&paaswU
o iArasmd *by
offoabis avamnmdlI
puil ance beadsea bom_eisad.
19c9sfee plerf
manes
bw
b Utit pT1cm o _Map.
lblag _ap
"d"anGiYOby 1990,
oaitUpaoiid5cOaadlwdhcoabi beingSar&429dbsmaydibn35bbwotowAui8dSUIaWuSdf
aflmtheaaanhiwkNqUl1rimeaS
160_ tatai_4 saesd mot 1is
Incldeda 10%ar
aietplon
lmnets
otmpildngssa
zy tbolo nmiklyad
asciostlon. on ism
ds T(a ig
eEc. ilsmami
ohathil_ 53mblo
_ copo
N
hded u_I_s
delw , wllte
A pbpilcl wosbproprwm prpn
tod.prje
nO#el
wrun
toadies si
bde
mrdntoacccal
ad.
dSwm
i) li second
ded unl funds
om
menigl. auu
i p*e. (it samsti Incub..ad
n DlNm
ut
d a 42
c
loal udig
pdy an ha b_de apwvl by1is Tieui babe _hngd siea 131950a pludnol budges liko awe yun ulu
lbrpmo
ad as
an 1989
eds 13
issasuows
wita
man
tod ouaamp
dds inusmady
minaiYde
d Minbso
aw eM
l Coit
hapto
an 13 ditcrhr
cmnai
13*
amity18
mobal(the
flatwlaoan.,i fundig
_ isk poidebete
unoda
1ibi sma
_o .mlae
p-m tinl
Wd
Is
nl ma
B d apdf
bued oIt wa
and
mind Od
anuedulsi
of
withfcuo ceWpistlon
k m
tway
econd
70%o
bemad tbsr aqud
IstHk towa
dbuaeu
psnap) is Boa snkse*W
S eaum y fi d (Ve bassb
fou
- _nauesoL
mo
ends_t, am.
d to high
So
sum a ba
W although moo".
dut dlo
BaLn
oti
p_ase
beada
*a)
t
He.V it eW1bmfunsafor am um
(the
nadonl udlr
dsia ofIor
On
- atoad
wi"spaaiabe"
e -eaah_d
lan toa^W
Suome m.foader
puady
O"i dhuaa
amethiw leu
and
i u
dabsise3adywe,
so).disr wid
h1
abs
by scond
sd (non
matical
be Ow(ad
an) I.widoya
ipa ce
tsp
palc.u.
h
re suit(ssl O the pbywe and w on car po
ai
ltqont doavy vtut
sm
wai
A p
at
t d.o.esublev
ha _rsm
oldisa not*
Inditutan
uedphibos
sesp.Onytoce
paI-°A
withg
ha mao,19n
peps baptted
delmSnk.puwapacud
a aobeocdnbye_eee *aw
hmd ~i
as
wiq
s..
adbe"ma_nW,
Oas
ew dm
aa thisgeoumst
isame
iowe
aa lamSn .dfcoe
ted(_iups p1 asS Idc ofdas 1i antiosalprodcto of tus). Roauansnc
iabmi
ito
boa aiouaed
hsfinnc_ u_e i los). _aoedisng isfew istt workby otath
(onl _a maneme sqlrn
Ove amilapu foruad ujeeehosa
* U.n
sc0 wei
asian. em
isage bornt
cha
ac
sP
wt
dachhg
awa
192 saff week.
fasgoitie.
ad h pmpandoandappainl.as hrtinestflnpgmd
3 withoua
p deduius due a is Indee
bt
pt o
n aaaiwcludsta
1ds a appaba wok b
-
62 -
Case 2
Highway Secto Lending that is Payg Off
1J5_
aupp_.
toasaw isitial
5Ue_|
4PC
inasdmdlk
sh rmitAwm a.
1ainaIpmmddmwm.inoedw
a atlvautosiniwasap
aidaiprd JweSto niuodmch
ngm
45 i
FY83t
c
eein
le
oafPA
doa Atr
bng
adpfivebyrouldelog
oafia
wAt
tje
..tcu tih lint
qm
die SAL
ed aopW d aFy t aoadn
ithi
ouM
p 6de
tem
ad 1tout
bi ?pes
lan a lorn
t de codiaed
SItOimi_ns
mill a)t_* mor
SAI.
bFYs
pdomnpp_Inidtie
ainhmyotflaaae.
that
pdeswrn
nd
orpsos
83anad
86 tete[amS
50 mll. I.j b) by
wY
a alsI,
Nssed&w
uMaloprIof
m nap
swmusar d ii@subs
a wtd theim
amsmobilla 53mls'
d
wamdwn
it4csonnnm.
efee
lbBmakmsp-uul,s-to#
C_iZ
emb1|le"_X_
rt.om SdMda
to mm
(uspppllw e
ia s00C,
Op
reiutngwisa funding sd a p
mI ap itie
dd
liest a"
tiIt
se wmbkUm"
with tbiIsc Itwalb
t pees was
_I4_Wdfnboiaona
hfutst
delyed
e l, ta eae1l1dlaotfbpd
)b
ed
ipp
n
Sebolltmn"
fun le makdi
paymaiw.
simeal
Otat
mid
t dia n bi .
wanTs
p cslne
tdl out
sofa caMpeiv
ItW
lie pud
iwash of
agtie udlt muof
rltsd coe_a
tielicibl.
sfsllu
ecimabWt
mo
with
_.s
i4t
t a_bs ofdin
cdei tatl added
u pthulw
d
s somud
Imad
Ioe
v
pmisslea pbe
tad
ws
mauledote
ton
mW aiwdiemmSIun
eteynliry. wIth
lIais
pOOdd.
set_
_pasipmo
mtoOheM
utu
in puldoredf maitene.wshena
thema
-cnabeosvt
ad sWiin
6pmeda.wr
%Wi the
redud tiepnlvetndewa
p.daotd
yasspgined
iewn
4neptiaith
waeaiped byoutnwhclnud
policylnsan
pamee a ret
thatmed anti bumfx a_mat
adctopet.iprv
ptodudvty
lie pui_ahaes
o otnl case ut eso.tudis
all prpsd wad1
ppsaI Eheomiepudedqt
arume_ep lo beusdwith
polpiia_n to mlabw teir psopoawr
yamaot ad ms anr b d i poUItdnlin to e -ba rgumeate
inmites"
dimaud
p 1 thr
wesXbv_L
Tip
e"d
1
butisdengin
otheraseu
psmdmorediffyult
4
b
45mltliassy
peif
td
in
oe ints (wm
S
epIak bta
bee iWlw
t
_
2t~blmdobwso
151P
i app
toeddateK
n Sunits
nowfullysu
Itha stedr aproc
l eseodbay _loamcusbeth
no
th cumdo ndte| melammsspap
lewman sepslls
praies s.sltete ha_
a on
zthes
dpe
the ne
Ama
_ sete
p rect TheSn fiacs90* ofth cutt
fl osdeeea.
Trade
oftabeasa
pof stdie
ndom
a0fe cling
under
Xti _ded
11gb
atear
prajees
and
f bti _nma
ataboldn
frig -Vpsaje
20.butappsadaamTh
bueauade
1. bil fldigfrm
alhuhthedbssuotnedabeseabesolcl
betneedeIn ote * u a n lSmy
b
t
"
.rO btieci
ay mmpee
Lsublcasre
vansposs loan
ftheprpsnae ape
_
ponmod
fmleted subpeste BasXedo
the
onodm
tookappeimed0
of ineresto
doe_tc
ma e ms
condtons
of
fud I, rod manesns Deaweoteoan
in thuvale df k loa.eqee inb dollas
543 milion
apoed^ in 1963Tie Bea inn
pade a _e ambitous
t_nsps mwteloam
Th Ue hganyetr _oa to 50safwesI
pesaoi andapp_a
is and2D,in egtadoa T
eseed,
rook_on 107staf weedsin
prpnon an apunll sd ndim
ise Ihcfnlceread
lue 8s8taw b nseoad ona lienityearthfll fldgedmpmemstookarond
50st_ bahI bet cu StafImue thuswerebighetha for astadad proiet
-
63 -
Case 3
Beyond Sectr Lending: Back to Ivetment
Lending
1m paualydpu goadp dlulintlheu epotsearaa biccm tointeode (ahr Ittop_mam
No policywoudldoautyWaor is neiy, bs Dak um1 t_aaaw adAIs Jukd
Kom Isa _canple of whetgovarmetc
tomm1'appmpata
po*i_ en ackime.O cO
at we Wm
h..b appWve
pryea in th l9I; leaig mede SI bIlio andtheimp-renadercod _u god l~
eet _ad pcce th lob o
$
2
0
3
a
&
_
4
qit~~~~~~1m
imqt_ome
5200
mapuvdlan
FMU inclw ud.olyOhreoenanw toa deaonlywit puueciinpimmtelc apace Tb. Pr4e
imemed
invemanenebstmabmorophiaaiscawuaecorm
napes c theauhlhmeutoamemlaememagmn
m isa~me
Gs&W
Pom NOpoli owuae m equedt
_
In thepetod
aW cibjew SA. and WAL t
S72 am
No binme
peW ce" e pUicot
h XpUt
IC
dro
dtsol
o"admnbumor
OsIJia SEamJ_7Z
Onl ce of th brcwfr lgw,~ a ald. *co log..Itaapprevdi FY3
qberoa
wokdirc inheitosh seto loa stegtee
t diaoewt
dh goema
andpvide tpP(eok
_pov plannin and
coomilimasdo slvtouaaec.a o er't(oooVeevadonpolie toduugnlnt Ind UuoI andtfo mlteanemanagmetand road
saq.y St
. tamd iapnbi and evluif tan
prOject
u
t p
im mw po
d a
p
r plan
-8widb
himple
ios wow acorigly an yeariy undin to Me&Sit dof tuaor
a
thatimmeoftheirimpect
-- em.y dltlency(qS reguaionatInducinXg
emt
ubo
econoalo_tuk a.) adegloyrfm
hvbenintoue
basd ontdo sde.' findingVRoadmainteam is
and is beinghthe
of1improvedunderthe FY3 peajectalthoug imprvovensu
remai toh introdved in thaemainat at opovn aadacontry
d
tads ude b govrnment
y TheFM pfct abo
isotbpoeas de mad atay propam intfid unde th seco Ioa.
_
-m
setr loanm te rativly aq' requlrlagoely5abE ms and8abff_wee daerly
an aveaef13sawe
peryearwan
spet as auqen
apesviai,onlyslidly oe
1 S fw St avsp ptojec Subequent rae, someof whichuppoed Korea
ezpor4edpmesh(e&porensddcordorlpevmsntr; ed otheobjetiebeyond II nasotmcr
euie vnlstf
inputthan
theetr loa.
bOvI
8 p oe
pr
lathe 191t1 Ye y8nkss
pavimneftotforshesstwmngbe
_
about
40 ad GOatEwe
T
edulos
them0ub4plie
pto
avaeoefsdd10plstaff
requIse to owh
a ahere
to
binobtemsine
of emluon Tortalyate
bmpureacheda mamm
someIGOd
sh
eki FY87.bultweeonly50rf dwee h own
yea.
II
1H
"
I'it'll
'TiiiiiII
11111!
fflIijj)j
'IijII
II
IIIfIIjj;5j IJJII
"
1111 1
1jSh,
4
1
m
jiI
ii
J*1j
I'
111111
iiuijI
JillIII !I'Ifii
111111
1
jjjjRl 1 IIjijI
JIgI
iiI"iI
'dii'
hi
!iIiiI:bII
I"' ii
pfli IIi:
1111'a
1111111
4
I
II
IIII
Ii' ku
qq
1
1
I liii
JA ;iiLiiII
Ii
11111
a'
'LA
jisj
lilt"'
'U
I
. 11"
-
65 -
Case 5
Transport SectorA4justmet Lendingto Elevate the Dialoge
TSa*.~6 aeeme bdam alda baa poildcll diflaf return in la masepu m &bet dam am sodi a
wMpaud
baelsa
dilous.th_ Mbu
ow otpuu
s~ thcli
thelma ummb
alseo
_dl~~~~~~~~~I
-Id<*dembs
Awt*b_IbvWjbd
ktt
at psInu
n1
ppumis Hamofa SAL
I9b ad 2 bhu 197k. Iais** is do at9
tit a Isdi&lagm
w_
i 4 pai
*ag
tomu
SW dn_.
abss
Ihud ban
sleama rash, reilsp
pand
o
with " in.I fthmaddin and "1 wisda*om
oftas
tar to uealp~
w
odddht pOM
jet laing ws prmbles to
t SaudiWba
-pt 'tffgo
pulpmit
bkd p1W#hmmem maim
osadei IsnV6
th L
n *fhi uahw_kat to BaH poli "are
k auompald tu GmSAe (53.9 m) blind bySr
st.
SDCA.S(S4 m) tt mug. wn mt a thu Dnde
itb pis
dht tS Ba badsu of pasa
Ipp my bepd spar
dtw Ia th _a
ea
ee 1915,
I
et
bom
frmom
mmuhh ua
Imeaa ea.bmahedoanapeua.ouuds
m.m *2MUinbepa,Sud
of kmwms.e
hat'wiha dmeeld4u*%asme admasmor adequmsplmsi* D 1965 fthDak caead&mdSoeadmdemimtlm
& h.
MOe meaum W
a
mbs a in
amadlmto
dd
ajW
or aomamddue omuem, aed wmescommqamsemasthu pablo
famai smimuosuder a sodIfie DT
caomassmaam lIH&rai pasm.wt twomma phoned we with i bilatera.d puimme
uthkre fuswAe,
nida
the us*
il
_dghowsqoogMa19dame
4otp
mgsraew
fimaadotacbom
dbm
oIgrsm
eaouim
* be
ath
-t
Wbt khid at
psy_atuw
or mebat
ma majorki
faPuoms
=*Pram oftumwmafeded
mh
smag s5proeherfa
165uodUlyI
It w
mmlpiun
ohu
adsagmhsOetl.loasa
maot
h petepsoau.ln
aepaZ*che
t ashipawi
wii hwSn
ThDy
nsdsau
Teau
sdSes
Pasmgrnatoe
neneepheseraaocsuss---a4u..
ieDak.min
ai asth
meeamwMb
foiy
b
aidm
ato
thui&
ha
Saul
saofat
lawa
4
majori
pollq
ndeam
abotnd
kdifutpolti
ole.rn
rpseaogtuimmuaim
h *I
inbX
camslgln
gsh
esbi
pmfhsi
arXiaq4vdfiaU
raus
ih s_irs mesalaloade
tthe osswil petielymeth
li.i
eemluyd iMwitsntepomi
asapalms
4uellmwudh
m,elnest fte
male t26
madin ode Iat ingaw seded. shshw
o
itwfdm
sonh&
e"
Z_
*W
swi
I~t
~w
eanagm.thuhua..
atdd
paint sefdsb
tHuapo p" dsktbl
prosd& usw pof
etn
amela udamiq dMma u usosem
I
t ofo ade thu tygo oatroea sogTn
y v*s
*isthe
ueiapm
au
RA§Wato.*ohme
bo
D
C
'l
'.0
!~~~~~~~~~~~~
-
-,i
-
67 -
Case 7
Multi-moda Trnspw
ProetGecco/AdjuMct
Oprtion
lwime
Mn alan aus"" asveims ~pnu);sad 8uadum
ent Ilg(It
bln oendm iow
m fwereveswmand
duue a policy aflsuppsa
xnetstua ya
a I .0.sa.o
sdnu
a)
Givente bnclds in lb. mcom.it 1 ameastai timetaiso Isproect wuld he beenbettan m win saft
issaunto
O 6 fthlimitd
Insiaoa aPebiid in tSo asay. Menwimaig
is Mialyf. be diffial
l'Y by -nbfood (InrUnisni psIC
ec thfouwWm sNWa
515 amIl nob Dankha bun the 'lnd is fthnoo oumsti
enedIII
heoicemadmobilziagand oweOdnading
coftaniea
he Oankbee&al bens n Impasbain
asat obelan of payume
'IVas thasag 2 SALsdostaWmmaiblinedcofianinnd
mohd 5155moon. sad nowp"ta impasn ms.
dii. and psiwalizadoclaD SUalmicngandnaith ac*Atkal It onvo the ovral lvasumenpwnm. theaisfwbe *.c.dananow.
weat,beaboH"abed
(m
npe)orIpw
alae1Iwy.pe).teansa
ui ealtudI
b iiuyludcol
underlbs Prevn
- 0-pe
isets become,a foes.. then lto flu pehe-I traode enteprpeleSacow
tugslaha area be P
eclosed
sccsdIng*. h We
msom naresmmrxed
Is a polic mnab withmallonbke rgus Inluded is a lawofatlani elgue by the
goaru enmm
cto', action an moaditionfar disbumemen he Ioanfinb wMlBonanwafmcigi.
nanfy underdh preiius hluyu
affsdmi ng
cooieraIoscmthesudgbasqiraidepree
affeetivemim
a condgtsa
&aiMe
-o mn
fsactiu- of 60s klueds.d
dw
lb amabuilanSo lb.mad fid,
andfding
IA~swloaind
anatbuss a loser
foruvvms
underth ma omlksfee
ea
ofth lbs imitdkintltudea aopebIlit in dbsosne" and malpalitaUecaomIck che"ake ib daub aboutIWmpaumetti
psOMlliIu Doudsam onlymitigatdbyshecomuinatatgenmest
of
ficlils.O&
aNdbydohe
ipu of hel4p apse andcontracia
gmeaplred Thefa dhetOme "aea ofmaims applytimuls
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