HIGHWAY INFRASTRUCTURE (LOAN COMPLETION REPORT)

NO METHODOLOGY IS INDICATED FOR THIS LOAN COMPLETION REPORT. THE ORIGINAL TERMINAL DISBURSEMENT DATE HAD TO BE EXTENDED TWO YEARS TO 6/79 DUE TO THE LOW EXECUTION CAPACITY OF SOME GOVERNMENTS IN REGARD TO THE DESIGN OF PLANS AND BIDDING DOCUMENTS; DELAYS IN CONTRACTING CONSULTANTS; SLOW CENTRAL AMERICAN CONGRESSIONAL APPROVAL OF LOAN CONTRACTS; THE 1976 GUATEMALA EARTHQUAKE; AND BAD WEATHER. ENGINEERS FROM ROCAP AND CABEI MONITORED THE SUB-PROJECTS, PERIODICALLY INSPECTING CONSTRUCTION SITES TO ENSURE COMPLIANCE WITH PLANS AND SPECIFICATIONS. SUB-BORROWERS, HOWEVER, WERE RESPONSIBLE FOR EXECUTING THE SUB-PROJECTS AND ALSO SELECTED CONSTRUCTION CONTRACTORS WITH THE APPROVAL OF ROCAP AND CABEI. CABEI PERFORMED WILL IN IMPLEMENTING LOAN AND OBSERVED ALL CONDITIONS AND COVENANTS. THE TOTAL PROGRAM COST WAS $39.5 MILLION, OF WHICH THE AID LOAN FINANCED $25 MILLION. FIVE HIGHWAYS, WITH A TOTAL LENGTH OF 273 KILOMETERS, WERE CONSTRUCTED IN HONDURAS (2), GUATEMALA, EL SALVADOR, NICARAGUA, AND COSTA RICA. IN ACCORDANCE WITH THE LOAN AGREEMENT, THE ORIGINAL ILLUSTRATIVE LIST OF SIX PROJECTS SELECTED FOR LOAN FINANCING WAS REVISED THREE TIMES TO COPE WITH MORE URGENT HIGHWAY NEEDS. ALL PROJECTS OR SEGMENTS OF PROJECTS WERE RECOMMENDED ORIGINALLY IN THE CENTRAL AMERICAN TRANSPORTATION STUDY 1964-65, EXCEPT FOR GUATEMALA EARTHQUAKE RECONSTRUCTION. THE ONLY IMPLEMENTATION PROBLEM OCCURRED IN NICARAGUA, WHERE THE SUPERVISORY FIRM DID NOT ACCEPT PART OF THE WORK BECAUSE IT WAS NOT PERFORMED ACCORDING TO THE CONTRACTOR'S SPECIFICATIONS. WHEN THE ROAD WAS COMPLETED, THE DISPUTED PORTION REMAINED UNPAID AND LEGAL ACTION BETWEEN GON AND THE CONTRACTORS CONTINUES. THE PROJECT IS NOW COMPLETE. NO SPECIFIC MONITORING ACTIONS ARE RECOMMENDED IN REGARD TO POST-DISBURSEMENT COVENANTS. ROCAP WILL OVERSEE THE COLLECTION OF AMORTIZATION AND INTEREST PAYMENTS.