LOAN COMPLETION REVIEW REPORT FOR 511-L-021 : ROAD 1 AND 4

THE LOAN FINANCED DESIGN AND CONSTRUCTION OF 2 MAJOR RELATED HIGHWAYS, ROADS 1 AND 4. ROAD 1 WAS TO BE 86 KMS AND ROAD 4,206 KMS IN LENGTH. THE PROJECT SUFFERED COST OVERRUNS WHICH WERE ATTRIBUTABLE TO INCREASED CONTRACT COSTS ESPECIALLY FOR EARTH MOVING AND SUB-BASE CONSTRUCTION. CONSEQUENTLY, IT WAS DECIDED TO ELIMINATE 22 KMS OF ROAD 4N FROM THE CONSTRUCTION CONTRACT. ROAD 1 & 4 WERE OFFICIALLY INAUGURATED ON 9/14/72. CONSTRUCTION OF ROADS 1 & 4 WAS THE LARGEST AND MOST DIFFICULT INFRASTRUCTURE PROJECT FINANCED BY USAID IN LATIN AMERICA. THE ROADS COMMENCE AT COCHABAMBA, RISE 15,000 FEET ACROSS THE EASTERN CORDILLERA OF THE ANDES AND THEN TERMINATE IN THE TROPICAL LANDS OF THE UPPER AMAZON BASIN. 18 PEOPLE LOST THEIR LIVES DURING CONSTRUCTION, AND BOTH CONSTRUCTORS AND ENGINEERS FACED MANY DIFFICULT PROBLEMS. THE ROADS HAVE OPENED FOR COLONIZATION AND AGRICULTURAL EXPLOITATION THE RICH CHAPARE REGION BETWEEN COCHABAMBA AND SANTA CRUZ, AND HAVE FORMED THE BACKBONE OF A RELIABLE SURFACE TRANSPORTATION SYSTEM FOR THE AREA. EXTENSIONS FROM THESE 2 ROADS WILL LEAD TO THE CONNECTION OF THE CITIES OF COCHABAMBA AND SANTA CRUZ WITH AN ALTERNATIVE TO THE EXISTING HIGHLAND ROUTE WITH A SHORTER DISTANCE, GENTLER ALIGNMENT, AND LOWER TRANSPORTATION COSTS. EXTENSIONS TO THE NORTH WILL CONNECT THE PLAINS OF THE BENI AND AN ESTIMATED 750,000 HEAD OF CATTLE WITH THE MARKETS OF LAPAZ, COCHABAMBA, AND SANTA CRUZ. THE ROADS HAVE PROVIDED DIRECT ACCESS TO APPROXIMATELY 62,000 HA OF PRIME AGRICULTURAL LAND, AND HAVE OPENED FOR EXPLOITATION MUCH LARGER AREAS IN THE CHAPARE. IT IS ESTIMATED THAT 5,000 FAMILIES WILL HAVE SETTLED ON BOTH SIDES OF THESE ROADS BY 1977 AND MANY MORE IN THE FUTURE. COMMERCIAL AND MARKETING ACTIVITIES IN THE AREA HAVE DOUBLED OVER THE LAST 10 YEAR, THE ADDITIONAL TRAFFIC CONSISTING MOSTLY OF COMMERCIAL TRUCKS HEAVILY LOADED WITH LUMBER, RICE, AND TROPICAL FRUITS, AND MANY CARRYING SUPPLIES AND MATERIALS TO PUERTO VILLARROEL FOR SHIPMENT BY RIVER TO THE BENI.