LOAN COMPLETION REVIEW AND REPORT : BRAZIL ROAD REHABILITATION AND IMPROVEMENT

ORIGINAL LOAN AGREEMENT (1/6/67) PROVIDED FOR REHABILITATION OF PARAGUAY"S MAIN HIGHWAY, THE 327-KM "BRAZIL ROAD." ON 9/22/69, SCOPE OF LOAN WAS NARROWED TO INCLUDE ONLY THE 109-KM STRETCH FROM EUSEBIO AYALA TO CAAGUAZU. TERMINAL DISBURSEMENT DATE WAS 12/31/75. WORK HAS FALLEN BEHIND THE CONTRACTOR"S PROGRESS SCHEDULE, THOUGH THE QUALITY OF THE WORK IS VERY SATISFACTORY. 36 KMS REMAIN TO BE REHABILITATED AND IMPROVED. THE CRITICAL ITEM IN THE DELAY IS THE PRODUCTION OF AGGREGATE, WHICH COMES FROM A QUARRY WHICH IS DIFFICULT TO WORK AND NOT FEASIBLY EXPANDED. THE CONSULTANT ESTIMATES THAT ALL WORK WILL NOT BE COMPLETED BEFORE THE END OF 4/78. PROSPECTS FOR COMPLETING THE WORK ARE, HOWEVER, GOOD, AND A NEW CONTRACT FOR CONSULTING ENGINEERING SERVICES WAS SIGNED ON 8/1/76.