FIJ[IF flbpy - World Bank Documents & Reports

gR~ITUR~ Tt t |iRESTRICTED

PO}ThL~L~r~ FIJ[IF flbpy e Report No. PTR-14a

79g 12 I| tm u 51 r * &MI W W Z

This report was prepared for use within the Bank and its affiliated organizations.They do not accept responsibility for its accuracy or completeness. The report maynot be published nor may it be quoted as representing their views.

INTERNATIONAL BANK FOR RECONST'RUCTION AND DEVELOPMENT

INTERNATIONAL DEVELOPMENT ASSOCIATION

APPRAISAL OF

A FOURTH HIGHWAY PROJECT

TATT ANT. )

June 3, 1969

Transportation Projects Department

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Abbreviations:

USAID - United States Agency forInternational Development

Currency Equivalents:

Currency Unit - Baht (g)US$ 1 $20.80W 1 = Hj.to.oh8$ 1 million = US$48,076

Fiscal Year:

October 1 - September 30

Units of Weights and Measures:

Metric

Metric: British/US Equivalents:

1 kilometer (km) = 0.62 miles (mi)1 4 -meteI (m) - 3t (ft)

1 square kilometer = 0.386 square miles (sq mi)

1 liter (1) = 0.22 imperial gallons= 0.26 ga'Llons (uS)

1 metric ton 2,204 pounds (lbs)

THAIiAND

ArrnAISAL OF A FOLuT-in Hi-iza-wA'I rrnwiJCT--

TABLE OF CONTENTS

Psse No.

SUMYMAR AND CONfCLUIONS .................... ... i - ii

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

2. RECENT DEVELOPkENTS IN THE TRANSPORT SECTOR ........... 2

A. Gene!ral . ..................... 2B. Tranksport Coo±dination Study . .............. . 2

C. Previous Bank-Financed Highway Projects .......... . 3

3. THE PRO ECT 4 o .....

A. General Description .......... . .. . ..... . ... 4B. Construction and Improvement . . 4C. Consulting Serrices ... . . . ...... 7D. Worlshop Equipment for Highway Maintenance 7.E. Cosa; Entini'ates. . ........... 8F. Foreign Exchange Coiponents . 9G. Project Execution and Finance 9

4. ECONOMIC JusTIFICATION ..................... . ............. . 11

A. Genezral ......... .................................. 11

B. Theirn-Lampang Highway ..... ............................ 11

C. Thonburi-Paktho Highway ............. .. ............ 12D. Chunpae-Loei Highway . ......................... 14E. Highways for Detailed Engineering ................. 15F. Eqilpment for Mechanical Workshops ................ 16

5. RECOMMENDATIONS . ........................... ............ 17

ANIX- I Ex-tract from Appraisal Report ror Tnailand, Tnird HignwayPzDject (Chapter 2)

ANNEX II Extract from Appraisal Report for Thailand, Third HighwayProject (Chapter 3)

ANNEX III Chumpae-Loei Road: Possible Effect of Pa Mong Dan Project

TABLE OF CONTENTS

-2-

TABLES

1. Motor Vehicle Registration2. Civilian Consuumtion of Motor Fuels3. Highvay Expenditures4 . Design Standards for Tvo-Lane Primarv and

Secondary Highways (Rural.)S. Eatlats of Csat6. Vehicle Operating Costs in Flat Country for

Tnt.ir-Tlrbn RnftAn

('HAWI'

Org-nization of D-partment of Highways

UA-P

Ail ft"A = MV+4^o..l U4,1, . )4..

This report is based on the findings of Appraisal Missions to Thailai4dC-~ju'.w& 'ji a out. FD.- L. % Luu, LU JIA#UC)r LYU6 and uy Mr. Paric

(Economist) in December 1968.

Arrn8A.LOAA OF. A rVuVuW viUfWAi irn' PwzCx

SUMARY

i. Thle Governmeht of the Kingdom of T-hailand has asked the Bank forassistance im f^ ancing a further part of its highway investment program;,tne proposedi project would cover:

(a) the construction and improvement or parts of three primaryhighways, totalling 294 km;

(b) engineering consultants' services for:

(i) the supervision of the works in (a) above and

(ii) detailed engineering of a further 533 km of primaryhighways.

(c) the purchase of workshop equipment for highvay maintenancEl.

ii. Thie total cost bf the project is about US$ 48.7 milion equivalent;a loan of US$ 23.0 million is proposed, to cover the foreign exchange comit.The executing agency would be the Department of Highways of the Ministry ofNational Drevlopment.

iii. TIis wvould be the fourth Bank loan to Thailand for highways. Thefirst loan of US$ 35 million (341-TE) was made in June 1963, but was redutcedat the Government's request, first to US$ 25 million in July 1964, to eliLm-inate some roads on which improvement vork had been carried out by theHighway Department' a oun forces, and later to US$ 22.5 million in July 1968because the contract prices, reflecting the international competition bid-ding, were less than those estimated. Construction work on the 330 km ofproject roads was satisfactorily completed early in 1969. The purchase ofroad maintenance equipment to the value of US$ 6.8 million and the trainiLngoverseas of UL engineers of the Highway Department were also financed bythe loan.

iv. The second loan of US$ 36 million equivalent (455-TH) was made inJune 1966 for the construction and improvement of 780 km of highways and forconsulting services. Contracts for all the work have been swarded; construc-tion is over 60% conplete and on schedule.

v. The third loan of US$ 29 million equivalent (535-TE) was made :LnMay 1968 for construction and improvement of highways totalling 470 km, forconsultants' services and for a program of overseas training of members ofthe Departmnt of Highwaas' staff. Contracts have been awarded for all theconstruction works and the Department is preparing a program for overseastraining.

vi. The interest of many international contractors has produced coan-pqtitive' bididing and reasonable prices for all the projects. The quality

-2-

of the work is rood. A feature of all DroJects has been the inclusion offeasibility studies and detailed engineering of roads which the Bank mightconsider finaneina with subsequent loans. Such studies and engineerina werefinaneed under the first and second highway projects for two of the threernhAA tn be eonstrueted under the nronosed fourth nrolect.

Vii. Hlxhwav traffIe it Thailand is continuing to increase ranidlvyand to keep pace with it the Governent has drawn up an investment programof TTRU Inn millinn equivalnt fPnr the ennstruetton and lLior lmnrtvomant of

4500 km of roads and for paving over 3000 km of existing roads during the.4,A 1°06-1 071 Th U4 ih,%_r 4i nvintmerat mmnr ntm to bhout 20% of

the Governments' total public investment program.

viii. The highways included in the proposed project are among the highestpr4, it4 -4 n 4the +h-& prow*mfi4 Th- v-^rhs ^b t.,onhi4t%a1 e a,1irnA

and economically justified by the estimated reduction in vehicle operatingcoz-&a -4ich ,v0A produce r-+e-z of roturn -^nig lmt--w 20% ^A 29% qV6wm -WLA. J LA W j4 '4'&'6 4 'I W'.'4 4 W -~- ** 4 5 -W -- -- I P- * 4

workshop oquipment to be procured would improve the serviceability of theU4-1- *A in 1 4 .. a 4

4-.Cntvt^ -iilA bc '6- avtr^t -w-fd ^n the bef-is of In4er=

national competitive bidding. The works are expected to take about four.- ars -- _A to '-- --- l+wwA 4- 1973

jw wh" 4U U WU4 4 # W*d% '' V.J - &. 1J4a

Xe wit proaJect iz6ya Bt d includ in a -e perio Td of 0grA cev --&lent vith a 20 year term including a 14 year period of grace.

THAILAND

APPRAISAL OF A FOURTH HIGHWAY PROJECT

1. INTRODUCTION

1.01 Thes Government of the Kingdom of Thailand has asked for furtherBank assistance in financing part of its US$ 400 mlllion seven-vear hiahwimrinvestment program (1965-71). The proposed project consists of the con-struction and1 imDrovement of parts of three primarv highvavs totalling294 km, supervision of the works by consultants, the detailed engineeringof a further 533 km of primary roadc in preparation of future nr-Oects anilthe purchase of workshop equipment for highway maintenance. The cost ofthe proJect le estimated to total about US$ 48.7 million: the pnropomed loan

of US$ 23.0 million would meet the estimated foreign exchange cost.

1.02 Tho Bank has made three previous loans to Thailand for highways,details of vilch are given in Chanter 2. The first loan van made in June;1963 and worlks under that project have been satisfactorily completed. Cona-tracts have been awarded for all the eonstruetion And improvement works inthe second sad third loans made in June, 1966 and May, 1968; the quality ofthe work is good and it In On schadne..

1. 0 D4rine the eourse of the three previour loan omteiati ontJ the fln'I1

staff has succeoeded in establishing a close working relationship with theThai Dnpartment of? H4ghwars, throegh which the -nunimtwvr high-wa needA ar-periodically and systematically reviewed and further detailed studies comnis-stonnd to connlitants as required The current proJect I a reeult 't thcontinuous process. Each component of the project represents an investmentrenan4 .e,,drgmet .r%4" h 4a-h ad%^ ^rn4o~r,. i'nw.4&% w 4n +)i% 4 e fli n~mun+9 M h 4 ha-w ~ grma qir.o. t n. hi p -- prioit - --- Go e- _- hi… P av Jro Cland is logically the next step in its execution.

1.04 Five other loans in the transport field have been made to Thailand.Th. - ra4_lvqr 1,-ans have bee.n m _ae, No. 3A5UTT ,w T$* 2 fl 417i- 4..W Oet^b::

1950, No. 128-TH for US$ 12.0 million in August 1955 and No. 280-TH forU$ 14 A6 411 4w A-"41 1961 *lo l-.s for ,-t4 + re U,, W 7JI 4o

US$ 4.4 million in October 1950 and No. 151-TH for US$ 3.4 million in October195 f i,e locas ha,e Lbv- 1.L ia'sbursd.

1 05 IWIs ... 4...1 .S1- U,t..A -- &16. 4.eAA-- -- A t&o~.. 1.1 LILU ;Wk1iI.L O 6& U43 aa 'JU& luAU W11 SU 10 GLUC QUeJ."WWA. "e5 L U1 U11 A 1uL

above and on the findings of Bank appraisal missions in Thailand carried outU 'h...U 5L U 1M6.UL/ LU 'l JJIL .L~s L~A .S.~~IUJU. hI TL -A~'UUA1968 W.B M-rris (EineL) '6 OCtober '968 a Parv (conMdst) in Wc-Wer1968.

-2-

2. RECENT DEVELOPMENTS IN THE TRANSPORT SECTOR

A. General

2.01 Thailand (see Map) has an area of about 510,000 km and a popula-tion of about 34 mlllion, similar to Spain in size and population. Thepopulation is increasing at about 3.3% a year. The GDP for 1967 was aboutUS$ 4.8 billion, is groving at about 7.5% a year, and the per capita incomis about $ 140. For further details, reference may be made to Chapter II"Background" of the appraisal report (No. TO-630a) for the Third HighwayLoan No. 535-TH, which is reproduced in Annex I.

2.02 About 3,700 km (78%) of the primary highways and 2,300 km (40%)of the secondary highwvays are paved. The Department of Highways, in theMinistry of National Development, is responsible for the administration,construction and maintenance of the national highway network (primary andsecondary) and of the more important feeder roads. Further details aregiven in the previous appraisal report, Chapter III "The Highway Sector",vhich is reproduced in Annex II.

2.03 The present report concentrates on those fields in which therehave been significant changes during the past year. The Government has madeonly minor adJustments in its "Hiighway Construction and Improvement Plan for1965-197l", and good progress has been continued in its implementation. Withthe help of advisorv consultants, the British firm of T.P. O'Sullivan andPartners, financed under the first two highway loans, highway maintenanceis gradually being improved and further Thai staff is belin trained. TheGovernment, has recently introduced a program of periodic maintenance such asthe resurfacing of bituminous roads and the reshaping and regrrvell1na ofroads not yet paved. Commendable efforts are being made to enforce legis-lation for the imitation of vehicle weightsi and diTnninns- and the colle^c-tion and analysis of statistics on highways and highway traffic has beenstarted. The Government h" undertAken to enontinue to iprmov these actlvl-ties.

B. Transport Coordination Study

2.04 As mentioned in the previous appraisal report (No. TO-630a paras2.15 - 2.17) the +-hverrnnent undertook to carry out ai trap-o-rt cordiat ionstudy to provide guidelines for: (i) setting up an appropriate cpordinating^rff*b 4WA-i4a (4is . -!-4 -4--- p,gr-z.,u4 o * , -A_ o°

transport, and (iii) improving regulation of transport activities. The+G -M o0LP reference °LOr t ., ..t -- W Ad b`.-4-WW.U tbhG `a. -dj Uo-Vsr-

ments in April 1968 and a contract was signed in September 1968 betweenTCTATT% anA t6e Ttr CWD'U_t--t. a..JAi.th a.a A ----. z .

V%JJA.LA.F '.Au uJ.'EmWO , N.LLJUL ~UA.U.I.L U.ULAD~U.bE JiU 501a.sThe consultants' team started field work in November 1968 and current indi-cations ar taLat their draft flnal report will boe completed on schedile inAugust 1969.

- 3 -

C. Previous Bank-FinanCed Hi1 lbway ProJects

2.05 There have bOee three previoUs Bank loans to Thailand for, high-ways. The first, Loan 341-TH (mee Report No. TO-355a) wa made in rune 1963.It was originally for US$ 35 million, but at the request of the Governmentit vas reduced in July 1964 tp, US$ 25 million becaase of delas; in oagagingconsultants and letting contritcts, and improvement of sme of the soctionsof road by the Goover ent's oun forces in the meantime. The length of rodssto be constructed and improved was reducod from 630 km to about 330 km. 'Theother items in the Loan were retained: engineering services for the con-struction anl improvement works. feasibility studies on about 2000 km offeeder roads, assistance in reorganizing the Department of Highways andtrmining of 'Ehai personnel in USA, Australia and tIK, and the purchase ofmaintenance eDquipment. As construction costs were lower than estimated, theamount of the Loan was a&ain reduced to US$ 22.5 million at the request ofthe Governmnat in July 1968. Because of delay in completing one of the con-struction einntracta_ nnd in obtaLinin deliverv of Rme of the read mainte-nance equipmoent and spare parts, the closing date for the Lon1n was extendedfreu June 30- 1068 to April MdL 1060= All the eonstruetion and lmnrovementwork has been satisfactorily completed and all the road maintenance equip-man+t raecea4ved Tvher wa a snrplus otf LS$630 j00 in the Toan aceent vhi.fhhas been cancelled.

2.06 The Second Highway Loan No. 455-TH (see Report No. TO-531a) Was-&. injsia .K.…--- IA14v41ni *m4-1n -a-&ed +h rn+vs%4k

and improvemnat of about TTO ki of primary higwayVs, including engineering9ewyjCez f^ ^w.,.4,q ^i, ,+ the, tz^v4., mv2A -Petv. #Pan41K414+-tr a+,aA4q& nv%A the-.eO -O -- ying --- th- f -rk ---- jo -eiii, otudie wd thoreview and revision of prvious enginpering for a further 190 km of primary

carried out, and is proceeding satisfactorily and on schedule. The closing%&& iL. SJW%FF W10J5J J'.. 1, 9L7 1 W.

c W Tam'W L.LUJL-% 'L.L'iwaJ & MJ~ m1j'. ./j JU L%WFWAS -W ~_"' _wJ "Ma

made in May :1968 for US$ 29 million equivalent for the construction of tvop_BeL _ a. a r t l 1 4SJ h7R .LIoLO - * Vt VS ste . .._^e s> fo ua_at_4in ot -b

construction and for the detailed engineering of 635 km of feeder roads,a.2A dLOO ioveriseas trl-auAg off -MIULbrs of qthow o-miL WA -'u Or rWi ".B-

vays. All constructiop contracts have been awarded; the construction worksare being cwrried out at.isfactorily, are abou- 25% complete and WU scheuule.Proposals have been received from a number of firms of consulting engineersfor carry-ing out detasiled engineering OI the feedr ros;, thei Gvernmenthas made a tBntative choice, in consultation with the Bank, of two firmsand is now nmegotiating contracts with them in aerdneo with drafts agreedwith the Bant. The Government, assisted by the advisory consultants, inpreparin a further program ror overseas training of members of the staffof the Department of Highways.

2.08 There has been a continued keen interest by international contrac-tors and very competitive prices nave been obtained ror al the contractsavarded under the first three highway loans. Contractors of the followingnationalities have been awarded contracts so far: China, Dnmark, Germany,

Israel, Italy, Japan, Korea and Sweden. Contractors from Australia, France,Switzerland, United Kingdom and the U.S.A., have also shown interest andsme have submitted bids.

3. THE PROJECT

A. General Description

3.01 The project (see Map) consists of:

(a) The Construction and Improvement of parts of three primar*highways, to include two-lane bituminous paving:

(i) Thern-Lampang 95 km(ii) Thonburi-Paktho 87 km

(iii) Chumpae-Loei 112 km

Total 294 km

(b) Engineering Consultants' Serrices for:

(i) The supervision of construction of the 294 km ofhighvays listed above;

(ii) The detailed engineering of about 533 km of furtherPrimary highways (see Map): (a) Lanasuan-Surat-Pattalung 340 km; (b) Sriracha-Patteya-Rayong 77 km;(c) Pattaya-Sataheev 36 km; and (d) Bangkok (Airnort)-Saraburi 80 km.

(a) The Purchase of Workshop Equipnent for Highway Maintenance

B. Construction and Iiprorvment

Thern-LamDs (95 km)

3.02 The reconstruction of this 95 km section will complete the pave-mant of the 850 km main h4righway frm Anmok north to i0% aqen--4 nearborder with Burma. Most of the remaining sections of the road are beingreconstrce;d u-nder the econd *and third o loan p-ojct … t thonot

being reconstructed are in reasonably good condition.

3.03 Reconstruction of,the Thern-Lampang road vas not included in pre--u'p - .i- w * i wax v - wh in s"f cient, to Justify it and studies

vere not sufficiently advanced. However the traffic has nearly doubled since~.Aw wW ~Mym&5 ~ U ~~O~.JW ~. 1L ~W' IMA.LW r, to .r;Xt " AWon.U3qL--XfJ Was

opened 'in February 1968; an4 further rapid increases are expected as con-*t."UW.,u ct.l u *WA_ M.-,LV" U.L tUhe "UAff^lJ&-%'J.WUgrai. RoLu aire eVpJ.Ue.eQ. onefirst 20 km south of Lampang have a bituminous pavement, but it has insuffi-cient streunth, is o-nly 5.50 M wide unU han- narrow shoulders. T'ne reaining80 km has a gravel surface, is only 7 m wide including shoulders, and becomesrutted and slippery during the rainy season and is rough and dusty durInqdry weather.

-5-

3.o4 Tne new inern-Lsampang roaQ uiil follow clostLy Tw existing

alignment through 60 km of flat and gently rolling terrain but the remain:Lng35 ki are through rolling to hilly terrain and a new alignment will bechosen to improve curvature and gradients. Of 24 existing bridges, 20 areadequate in siize and load capacity, are suitably located, and vill be re-tained; four new ones will be built. The ne road will be 5 km shorter.It is designed to P(2) standards (see Table 4) vith a bituminous pa-ment6.5 m wide. The right of way will be 60 m.

Thonburi-Psktho (87 km)

3.05 The proposed new highway would provide a more direct route forthe first section, between the Thonburi/Bangkok area and Paktho, of themain highway serving the southern isthmus (see Map). It would shorten thisdistance by :35 km ompared with the existing congested road via Nak;rnPathom and prorvide good road access to Samutsakorn and Samxtsongkhram; thesetwo towns, and their immadiate adjoining areas, each ha. a population ofabout 250,00( and is at present poorly served by low standard secondaryand feeder type roads, canals and the Maekloug railway line (see paras 4.108to 4.11).

3.06 The proposed route is parallel with the coast and crosses a floodplain which consists of the deltas of the rivers Chao Phraya (at Bangkok),Thachin (at S3amutsakorn) and Maeklona (at Samutsongkhram). There are ex-isting bridges over the Chao Phraya and Thachln rivers but a new 600 i bridgeis needed over the Maeklong river, ad bridaes and culverts over the manycanals. The land on most of the alignment is only about 1.5 m above sealevel. Becaune of difficult soil conditions, the road embankment will haveto be constructed gradually, under careful control. Construction of thereA il + i t.hua)rf'nr takk about 4() 40 ths .

3407 The :Watini tr-fric nn the nei, Ihlahv 1. exnn ted n ht bia abc,untt1300 vehicles per day. It will be constructed with a two-lane bit-inouspavemant 7 a wiAe and desmgned to P(1l .stand"rds (see Talbn 4)_ The right-

of-way will be 80 m and will allow for widening to a divided four-lane high-vvh.r n t.mF'f4 &ww,a tn iintl f irt pion ihily in amiut 1i0 vstvm ,

3.08 t.w -Urn,1 -d of 4-he nAs%f+ rOA 4^4"a th- at^-Mt+ gy +m 4" h% 'sa. -- .n.~~ a _…1, * -h- - - S

at an oxisting two-lane road where the traffic is already congested; widening00 LSi ro-A iS -1-0-A 4" - ZM%Mm Sm 4d gm ohsil-&A flwo r~ ewMl+4^" 1070.'JA to" CM J6.u C%6&* a r- k -. W Ii -- D S che- - .aapy. V y* -

Consultants are studying the need for additional work to be carried out toWi UV.- A%rwAU .4W VT.4U.".L AMA 4 W Im W VW caA j . Ew Vha A g A AY,

without congtestion as well as the additional traffic from the new Thonburi-rWAI.LU& UgWI-.J ._ MU- o a ..y.' 4- iDa -Ve+d 4- BWnDS&n. --9ad

the Government has undertaken to have any widening, improvements and exten-sj.on o-.L roUUM.JU .LL ZYMA.LULJ. CUUIA&WJ4I5iJ MALA 'C&aA6 4 W % m m A. .SU&. 'L, 'W%F

sary in the light of the consultants' report.

3.09 The new highway will be located in a thickly populated area anda number of ta(e Jama WJ.L 15 -JuacUt 'Lo &WJUS an" -. 1.L U .UJ.UJg .

western approaches to Thonburi/Bangkok. There is qonsequently a serious

- 6 -

riash- -P , uIM-nirm, 'hi-Ao av^,¢A fntingf t.hQk r-nAd d ht-inr dtiroetaccess onto it. This would substantially diminish its traffic capacity andj ^ ^^id4AMW+0 Tho nrnt 1w1uat4n,+in t t nriv tho

.&~-- Gv…- - - --- i A-rAt - ' -…- "- - ---

Departiet of Highwvays paoers to control the siting and construction ofaccess. TU4ing "o" "m~%+-lX4^a r^a"i ann (ma' ) to ge.i the

Bank an opportunity to comment on the draft, (ii) to present it to the'-8-1 A^s - Ib - Ty cbr '1, 1°70 o"A (444 ' " to Sa1oz +ht the Th^hinv4_

[email protected]&.IJ L -MO '1Wm L J w' - - -,,I - - _ %,- -- - _ -

Paktho highway is operated and maintained as a controlled access highvay…'n accordCaI " with aC acept.abb.le' t-o the

CnM&_ T e. I 1 -1 r 1- N

10 X~JuJ5 rVU VUW. 4JUULI, IUWM .LPW.L C"=" Wli..L6.AA L6Ud* Cm 1VWPULC&WIJYU JL 8&i'JW

300,000, with the existing main Bangkok-Nongkai (Laos border) highway atKbonkaen. Reconstruction, inc udinu paveMUt, of. tuh ir-Wt 8wetion, fromKhonkamn to Cnumpae, was recently completed under the Second Highway Loan455-in .

3.11 The existing Cnumpse-Loei road iB generally on a good alignmentexcept for about 20 km. However the road is only 8 m wide overall, issunken and poorly drained, with weak and narro wooden bridges, aud baa agravel surface which bec;mes very soft in wet weather. The terrain is flatto gently rol Ling.

3.12 The new road will follow tne existing alignment for most of itslength but with some sharp curves improved. Designed to P(3) standards (seeTable 4), the road will have a two-lane paved surface 6 m wide, shoulders2 m vide and the right-of-way will be 60 m wide.

3.13 There is a possibility that the propooed Pa Mong Dam (see Map)will affect a portion of this road at some time within the next twenty years,but de-ailed information may not be available for several years. There isno doubt that surveying and resettlement problems would take some time tosolve and some of the difficulties are discussed in Annex III to this report.One of the principal problems would be the relocation of the tovn of Loei,which would be inundated; the Government has agreed to consult with theBank concerning the effect of the relocation of the town, or of any flooding,on the project road. However, under the least favorable circumstances theeconomic return is still satisfactory.

Feasibility Studies 'md Detailed Engineering of Roadxto be Constructed

3.14 Feasibility studies of the Thwzn-Lamsang ro*L were carried out bvthe Department of Highways assisted by the advisory coosultants, T.P.O' Sullivan and Partners. vhose services are being financed under the Firstand Second higbhway loans.

3.15 Detailed engineering has been substantially completed by consul-tant-S *rrcCpiah to1 tha +.' 1 nk ntl_ theA rnAAm tn -n een+vmt&+eAta n inAv- t1ia

project. The American conoultants, Sverdrup and Parcel, carried out thiAa+4.41a 4 .4'g jf +-h. Th -ni...T.r¶Tnfx h4rnmrntr finirkantaA viimAa,- Tjr hrZr.JTU

wt~ .…rd an -.n e z _g- o-' Me

-7-

3.16 The Canadian conbultants, General Engineering Company, have nesa-lycomplete4 the detailed engineering of the Thonburi-Paktho high1ay. The somefirm has previously completed a feasibility study of the highway and hasalso been en,aged by the Government to carry oxit the review df overell tren-port requireLents for the Thouburi-Paktho regi6n (see para 4.13); tk:eir driXtreport is expected by September 30, 1969. Both the detailed engineering ofthe Thonburi-.Paktho road and the transport study are being financed under aCanadian tecmnical assistant grant.

3.17 The, Danish consultants, KAMPSAX, carried out a feasibility studyand the detailed engineering of the Chumpae-Loei road in 1965-66, financedl

under the First Higbvha Loan 341-TH. However the Government has had theconsultants recently review and slightly amend the design in the light ofexperience in constructing the adjoining Khonkaen-Chumpae section.

C. Consultirg Services

Detailed En.ineering of Further Highways

3.18 The nrojiet vould include the detailed engineering. by consultantsacceptable to the Bank, of four highways, totalling about 533 km, vhich hnves hiRh phriority in the Government's Development Plan. In each case. feaseL-bility studitos are either in progress or have been completed. Drring nego>-tiatimos agreement was reached that for those hithwava on vhich feasibilltystudies are iLn progress no disbursement will be made until the studies in

progress axe c lta and econmic ju ftifcatin- -clusively Ammntrated.

3.19 A lffeDaabilsty stud of the propo^A Lnnamuagins-uat.-P_ttalun rotadis being carried out by the American consultants Louis Berger, financed byrTWATTM -- A 4,, -- ct-d to be c,- nltedA hby Jil 1000 - h -% d Y n^&A foimWflJfl.UMg ind4 W r - -J--l--- -e form- -

part of the main road running down the southern isthmus. Preli-inary finid-ings are that the detailed enginieriAg '4-4 "- u-Wf"t ,i.^4,rn i be economicaUly Justified.

3.20 Th. Department of Highways, assisted by its advisory consultantis,T.P. Ot.1.ll4 - -P-and Th.+rs i' 4 e,ing out. fe9i4bility sntudies of thothree roads: Sriracha-Pattaya-Rayong, Pattaya-Sataheep and Bangkok (Don !aangAJ--..4l 0-... D1el4..4,... 4inA4^,a+4#% a Of th_IeSe ioi i@,ai~takILAL jiJan -bt_ P/4dieU , -sJo, are th_tdetailed engineering (and subsequent construction or reconstruction) would

o.2- nLA rep oa Ur,to IIrskrw v. -a r- +. ofa.1in4 eq4

ment for road maintenance having an original cost of US$ 50 million, includ-iJ]g th usA, .6 0 - AJ LV1O..A....LI_ aca n .U IJ... U41- T.. m-

1sW ub$ 6 *6 0 m1JJlio1 wrk I u ViL LMer U f JLJ.6WJ AJ.JFU 4%.4

341-TH. For the better maintenance of highway equipment in the twelve di-visions, the Department of Highways in 1966 anbare-d on a program Aor b-IAd-ing six nev :Divisional wvrkshops and improving existing workshops. The

building and improvement program should be completed in 1970. The Dpart: Uea

- 8 -

has prepared a list of the equipment necessary for the vorkshops and has re-auested Bank assistance in Durchasing it. A detailed list of the eauinmenthas been provided the Bank; the items include repair vehicles, hoists, lathes,drills, boring machines, tire changers, paint spravers velding equipment-hand tools, etc. The estimated total cost is US$ 700,000 all of which vouldbe in foreitn exchannc.

E. Cost Estimates

3.22 The cost estimeten for ennatunctinn aT-& ,e.&intic; theo n,e bhaai-on quantities calculated by the consultants after detailed engineering hadbeen subutantIallv ernmplat&d. The unit pir4it faw the eati^rnts MV, A_=rived from contracts for similar work awarded on projects financed by theRank in i1te 1968=

3=23 The eo8&t *atba+ tea fenw wn4nein& *v-w" bv e"-ltants for:(i) supervision of construction have been derived from the costs of such…e-v-e-S on f-l w-- l S. .&A ./ 4n "W^#rVg '' .a 1441 A-U-.LJengineering of further highways have been estimated on a "per km" basis, re-lated to the probable t v-^n nf -oAn to be AealnA"A n t-hey a-'wr.' V.tisete.

3.24± The "tehtat.-4 ^o+.t eAtia4tmn8 for the proJ+et --e given 4i Table 5;a summary is given below.

w (millions) US$ (millions) ForeignLocal Foreign Total Local Foreign Total Exchange

1. Construction andImprovemnt 406 332 738 19.3 16.2 35.5 45

2. Engineering andSupervision(Consultants) 64 64 128 3.1 3.1 6.2 50

3. Purchase of WorkshopEquipment for HighwayMai-atenance - 14 14 - 0.7 0.7 100

4. ContinRencv Allowances:(a) On Item 1,

15% 60 50 110 2.9 2.4 5.3 5(i) 10% quantity

(ii) 5% nrice escalation(b) On Item 2,

5% 10 10 2 0.5 n0.5 1.0 50

Teotsl s4n 47n i-nlO 25.8 22.9 48.7

(!) Roumding 0 n 0.1

Total Fo-i- n ch---e Crom-ponet 23.0

-9-

F. Foreign Exchange Components

3.25 The foreign exchange component of the construction costs has beenestimated by consultants at 48%. if the work were to be awarded wholly toforeign contractors following international competitive bidding. The foreignexchance cost of contracts awarded to local and Joint local/foreign contrac-tors is esttnated to be somewhat less. Of the 25 contracts financed underthe firsts three loans only one was avarded to a local contractor while fourwere to ;oint contractors. It is expected that the participrition of localtnd Joint cnntraetors will continue at about the same level as in the past.On this basis, the foreign exchange component of the costs of constr,uctionYork bovd h reAinued to ahbnut 4% annd this i8 the proportion proposed for

Bank financing.

3.26 A contingency allowance of 15% on all items, including consultants'services, is cos-idered reaasonable. For construetinn, this camprisen 10%

for quantities and 5% to cover price increases above those of the recent con-

struction contracts on wh4c t *at4mates r bod.

I' ..--.. +4,... -- A W4,.a"-&.U. xL%ideut Ex_to Aw_ i^

'.7 The Ml-dJAr ofJf4 .a A, vheA ^P Aat4^"l .all.-- -)* I Ille hJwyJ" uJ"AAW5A J.1 1Ue5.W,JJ n - --- .-n s r, ov- -z

ment, will be in charge of the execution and administration of the project,as il tle ease of the t4= viU Vrv BC proA ets. Constrcto vad r-WWMenworks will be carried out through contracts to be awarded on the basis ofinternationl competitive bidding. SCuevisio- ill be -A - c-

sultants. Consulting engineers would also be engaged, in agreement withthe Bank, to carry out the detailed engineerinog of the 5°3 k of roAdS forfuture projects.

3.28 There are over 50 items in the list of workshop equipment (seepara 3.21) to be purcnased. The larger items, or groups of items, exceeding

$50,000 in value, would be procured on an international competitive basis.Some of the smaller i'tem could best buc prcu" ed .wking uspecialized mnanufactulrers or through local agents and would not, therefore,be the subject of international competitive biddig; such it., are e-peted

to total aboult US$ 300,000.

3.29 The works included in the project are expected to be completed in

about 4 yearis and, alloVing ror finaL payments, disburs-MentS under the loanwould take albout 4-1/2 years. Assuming the loan is made effectiVe as ofmid-1969, ths annual disbursements are forecast as:

(in US$ million)1969 1970 1971 1972 1973 Total

2.0 5.5 9.0 4.5 2.0 23.0

- 10 -

3.30 The Government would meet the local currency requirements fromits budget, as it has done for the current projects.

3.31 Disbursements would be made to the Government by reimbursing 45%

of pqyments made to the contractors, (see para 3.25). The percentagi would

be reduced in the event of an increase in the cost of the project. Disburse-ments for engineering services would be made against invoices covering the

paYments in foreign currency under the consultants' contracts. Disbursamntsfor the purchase of workshop equipent would be made on the basis of theC.I.F. cost. The Department of Highways' accounts are audited by an internal

audit section and by the Goverment Audit Departmnt. Any surplus in theloan account would be cancelled.

3.32 The right-of-way for the roads to be constructed would be acquired

by the Government under its existing powers which are ad&quat*. No signifi-ant acqttisition problems have been encountered on previous projects and none

is anticipated on the proposed project.

- 11 -

4. ECONOMIC JUSTIFICATION

A. General

4.01 The three highways for con'struction would not only serve 1importantvolumes of existing traffic, but also induce new economic activities whickiwould generate additional traffic. As a minimal stctoment of benetitc- the1estimates of project benefits were made in terms of savings in transportcosts. Such etsimaLtea' indieaste rateis Of rat-nirn on dinidi ual prooect high-ways ranging between 20% and 29%. The economic evaluation also focussed conthe ontimum timing and nti;mum design rtAndtAa for the proJ-ct aiin tIheresulting rates of return represent the optimum return. In cases where thLetrafrfie volume and/or nsat of a"tq+.-i+o4 . t e,^si%,m 4 AA.mhl b

ent sections of one highway, the justification of each of the individualoza.t4rkra tam cl" e%'h&^lrmA

I.02o The treanspot Cost savings Iwre baseA on -A-.1c3 op.r-Ingin Thailand (see Table 6) estimated from data provided by the Thai Govern--19nt vahd its 1o-n +ta4v8t.s. The asis o°. tracfftic prJe-tiOn"s i- ' -n

the subsequent paragraphs dealing with individual highways. In soae areagof T 1ailMAd PC, LniLAtary traffic represents an important Part Of thqtraffic volume but, for the highvays to be constructed under the proposed

oiol, M4ilitrY trU-fic i insignificant. However, ior some or the nighrayrsincluded in the project for detailed engineering, military traffic may beOf a significant proportion. B8sed on the available information, however.,the economic viability of these highways is apparent even after deductingan allowance oI up to one. third of total traffic as temporary militarytraffic; further investigation vould be carried out before including thesehighways for construction in a future Bank project.

B. Thern-LaRang nig

14.03 Tne! proposed improvement of the T'ern-Lempang higwnay will com-plete the upgrading of Thailand's most important north-south trunk highwWrbetween Bangkok and Chiengrai. in addition to the Bangkok-Ghiengrai traffic,the project section serves also the traffic to and from Chiengmai, the secondlargest city of Thailand; the Chiengmai-Lampang highway was constructedunder the Bank's First Highway Project (341-TH) and opened to traffic in thelatter part of 1967.

4.04 Pait of the? project section traverses a rolling to hilly region,much of it forest, where population is relatively sparse and the economicactivities are mostly related to subsistence farming. The main justificationof the project, therefore, lies in providing adequate facilities for thethrough traff'ic between the northern and southern parts of the country. J>ueto its bad ecindition, this section at present represents a bottleneck forthe north-soulth movement of traffic. The traffic volume on this section larelatively small - about 200 to 300 vehicles per day in 1968 compared with400 to over '500 vehicles in the adjoining sections at both ends of thesection - and, as explained in the next paragr4ph, the slow growth of trarficon this section is indicative of the difficult vehicle operating conditioas.

- 12 -

4.05 The consultants' traffic study indicates that during the fiveyears preceding 1967 the rates of traffic increase were 21% to 29% for pas-senger cars and 5% to 11% for commercial vehicles, i.e. trucks and buses.However, since the recent completion of the Chiengmai-Lampang highway, thetraffic has nearly doubled on the project section and the increase in thevolume of commercial traffic has been also quite high, i.e. 60% and 85% atdifferent points on the section. This accelerated increase is to a largeextent due to the diversion of traffic to Chiengmai-Lampang-Thern route fromthe old route via Lee. It: appears, therefore, that the low rate of growth ofcommercial traffic before the ovening of the Chiengmai-Lampang highvay isno longer a realistic representation of the future rate of increase.

4.o6 The above factor was taken into consideration in making the traf-fic oroJection which assumes that the passenger car traffic would increaseat rates ranging between 25% and-10% to the end of the first 10 years of theeconomic life of the highway and 10% and 5% during the second 10 vears. Forcommercial traffic the assumed rates of growth are 10% during the first dec-ade and 10 - 5% in the seconid. This will reduce the proportion of commar-cial traffic from the present 75% of the total traffic volume to about 55%.

)4.07 The economic benefits of the project would be the reduction intranuport coat resulting mainlv from the imnrnoved road conditions- Thairn

would be some additional savings from a shortening of the driving di'tancebhtween Thorn And T.Lmnnx yr a1nut S km. rsaulting frnm the pnArtal realIgn-

ment. The cost of road maintenance would also be reduced by about 15% to20 a94-ar t~he 4iny-noum.v. Thr v'h4,'i nprw$thint p8t~ aaV4ting iiii* to +.h

improved road conditions from 1972, the first year of operation of the proj-ec hf 4S, mn em-4tiate °+- ,t aLts 1 3 w,4114v+, 4n 114 van4eh -to l OR .. -

the total estimated savings. The overall savings during the assumed 20-year4aacoa.4 c. 1 4 4~ -P +h .-. 4 ~.,I.1A n..rAi-, no a +^ -P -.a..sn . r.* C 4*tS.ln.ic life of the proJect ---- p. a- .- - f r * - 25 on sing

cost of improvement.

C. Thonburi-Paktho Highway

4.o8 This now highway vill- serve the coastal plains along the Gulf ofSiA. bew enU Whe BangkUo/ I hob"U-i metropolitan area aund the Pathof Pet cUbiI

area at the northern end of the southern isthmus of Thailand. The area atpresent is poorly served uy a railway linue (MaeXLong Line) anu a system orcanals, but no modern road transport is available, Low grade feeder roadsexist but they are flooded during the rainy sesson, in some areas for severalmonths a year. When roads are flooded, canoes are used as alternative meamsof transportation. Tnh population to be served Dy the higvway, not includingthat of the Bangkok/Thonburi urban area, is about 1.7 million.

4.09 Agriculture and fishing dominates the area's economy. Othar 4ictiv-ities include quarrying of stone for construction, shrimp farming and somemaaufacturing and food processing industries. The pattern of rural settle-ment is influenced by the aumerous canals. Outside the major towns, peoplegenerally live within easy reach of klongs (canals) or rivers, being inlarge measure dependent on them for transportation, water supply and sewerage.

- 13 -

4.10 The Maeklong railway line runs betweEn Thonburi and Samutuongkhram;it is not connected vith the liational railway ibystem at either tenlinal.Moreover, the line is interrupted by the Thachin River at Samutsakoi-n vheir.a ferry serviLce provides connections for passengers. freight transport bythe line is Lnsignificant and almost nil for the section between Samutsakoraand Samutsongkhram. The State Railway of Thailand is currently investigatingthe possibility of improving the operation of the line, including the con.-struction of a bridge over the Thachin River, and the extonsion of the linewestward froma Samutsongkhram to connect with the southern main line nearPaktho.

4.11 Waterway transport is important for both passenger and freightservices, bul; no reliable statistics are available. The waterway operationis little affected by modern -. echnology and management methods and, conse.-quently, quite inefficient and uneconomical at present.

4.12 The propohed construction of a new Thonburi-Paktho Highway wouldihave three distinctive economic effects: (i) diversion to this highway ota part of theD traffic on the congested Phetkasem Highway through Nokorn-Pathom (see tlotails in para 4.14 below); (ii) general economic developmentof the region to be served by the now highway resulting from the availabiLityof modern roaid transport; and (iii) diversion of the railvay and waterwaytraffic in the region to the new highway.

4.13 The project justification was considered based on factors relatedto (i) and (:Li) above. Regarding (iii). while it appears likelyv on thebisis of the present physical conditions and the operating efficiency of therailwva line and the watervays, that a large part of the railway and water-way traffic would be diverted to the new highway, it is not clear what partof mueh d4va,r.tad trvatfie mav bea nnaiderad to renroaent an eeonomie diver!4ion-since it might be possible to improve the physical and operating conditionsof those oth!r modea to u,ke them eennnm1cn11w mn-a oeffiti.nt Tn view o:Pthis, the Government has engaged consultants to carry out a review of ther4egion a ovr1all transport renuiremmnta e 0n vhleh t9n baa. the formulation ofappropriate Imeasures to realize an efficient utilization of the varioustransport moaes their ,*nn,+ ib expected ba W Rnteboer 196Q- Tt wa Agrbdduring negot:Lations that the Government vill discuss with the Bank the fiLd-4ins of the re-port, ith a ve to ,.eem.h4wai n ,-mm nt on a 14 st #rP meatsmes

to be implemented.

4.14 The proposed highway is expected to provide a short-cut directroute #,r trarrIc 1-tw,-n the Bngkok/'Phr4 m^t+v-r% itan rn en A?d thePaktho/Petchburi regiop which now uses the Phetkasem highway via NakornPDathom -n,A tburi. IFor the th.rough +tarfv4 iia4nl +'he n . h4rfhwAy, the ma.v.A ~ J WI l C6V S. A "~ 4 V£~ **~ 'nh _ - - - -t, - -e-- -- ,

ings in driving distance will be about 35 km. The Phetkasem highway presentlycar'e asu 1 w 4+ 4. +I%m ^ 1 + wllfr h4iPh%av r-r%%r%br+4nercqrries high volnumes Of traffic, s ww az ._s __

Bangkok with the southern isthmus as well as carrying local traffic. Thecurrent daily traffic volUme is over 11,000 vehiclel in the eavirons of tbeBangkok/Thonburi metropolitan area. The volume tapers as distance increasesIrO B«nsLukok I, V% hicle VW4%eLO. "WC 44CLLA Pbathom, J4,500 ---00 veldclelbetween Nakorn Pathom and Ratburi and 2,500 vehicles from Ratburi to Pakthoand retchDurl.

- 14 -

4.15 The rate of traffic grovth on the Phetkasem highway has been inthe r&nu. nf 20% to 2St during the past five vears. As the statistics indi-cate that the growth rate of the short distance local traffic on the highvwywa *omewhat higher than the long distance through traffic, the rate oftraffic growth on the new Thonburi-Paktho highway is assumed to be 15% p.a.dlring the^ ^nrlv vears oif oneration and oradual1y to decline to about 5% atthe end of 20 years of assumed economic life.

-4.16 The consultants' origin-and-destination survey indicates thatp-p^r4omat+el 1 3nn vehw1" an nor Artv n the Phatknamm hiihvav traffic vould

be diverted to the new highway. In addition to savings accruing from theso`.,AA A4.,. +ho.A4v.-eA 4v.f414r will hber4ft the traffi4- r4mnininaef%p J s W arn _~ - -9 - -. _ -- - … -- - -- -…

on the Phetkasem highway by reducing congestion on these sections vheretsM 1 f .c-. 4 h4 g,1 a-"A al so moke it t possible tn p-st nini fr gvnrwl~. ~ .i .L.. A.U.4MS a..e_ ,-- i'e r…

years the widening of those sections to four lanes. Due to lack of datathese add~t~onal benei are not ian , but4 are b -ehl1-vd to be of

relatively minor importance. During the first year of operation of the new£LLguVU, -whic .L5 I s.ryec .d to ba 197, tho -I4 - d-A trfic -'_d sam-US$ 2.9 million in vehicle operating cost due to the shortened distance and'u.& o.8 .rmA ' -po road conditio.A

1.1, AlthoJuh the nGwr highL .w L s o,iAce - lz 'p- -- -,- p-

more convenient road transport would generate some additional economic activ-

it1s . It is ,Lsumed th .-.Lt the VP&L&.Ln n L of J .LPth A 1.L WI. t .L . A gm ra

tion will be about 50 vehicles per day in the first year of operation, expand-ing to over 600 vehicles in vi-e years. Sa,... the gamera'A rwould grow from about US$ 20,000 in the first year to over US$ 200,000 in thefifth year.

4.18 According to the traffic proJecti.on, the new hig s pr.cticaLcapacity would be reexhea at the end of the tenth year of operation, at whichtime it may be necesoary to expaud the highway inVo a fVour-laeU facility;.In view of this, no further increase in savings in proportion to trafficgrovth is assumed beyond 1983.

4.19 Thl'e flow of annual benefits during tne assumed 20-year economiclife of the project iqould produce a rate of return of about 20% on the costof a new highway, inqluding the right-of-way cost and tne maintenance costs.

D. Chumpase-Loei Hig1 aY

4.20 The proposed improvement of this highvay would complete the Govern-ment's program to provide connections between the main population centersand the northeastern region's main trunk highway between Korat and Nongkai.This major trunk highway is often referred to as the Friendship HighwayExtension, the Bangkok-Korat highway being the Friendship Highway, both ofwhich were financed by the U.S. Goverment in recent years.

4.21 The service area of the proposed highway has historically beenisolated from the rest of the country due mainly to inadequate means oftransport. This area, like many parts of northeastern Thailand, is exclu-sively dependent on road tronsport as it lacks fluvial connections and rail-way services, the nearest railway station being nearly 100 km away.

- 15 -

4 h, 22 The progress of the northeastern region, including the service

areas of the proposed highway, has been lagging behind the rest of Thailcad,particularly- in economic &evelopment. It is only recently that the Gover3-

ment became active Di planning and implementing measures for social and eco-nomic development for the region, partly for political and security reasa2s.The area at the present time has predominantly subsistence agriculture,mainly rice Vrowing. Less than one-third of the harvest is marketed.

4.23 The traffic volumes in 1968 rangod from about 200 to 450 vehiclesa day on diffrerent sections. The composition of traffic is about 20% pas.-senger cars and 80% trucks and buses. The traffio volume has been grovingat 25% to 305C p.a. during the past five years. Tk4e relatively high rate of

traffic increase is a reflection of the fast increiases in both population(almost 5% p.a.) due to inflows of migrating farmers and the number of reg-istered vehicles in the area (40% p.a.) during the past five years. It islikely that the present rate of traffic growth would continue for some tineto come as the economic development of the area is only beginning. Fortraffic projection purposes a declining rate of growth starting with 25% in1969, (25% - 10% for 1969-83 and 10% - 5% for 1984-93) is assumed for theo-erall traffic volume; the proportion of passenger car traffic would theaincrease from the 20% at present to a 35% to 40% range.

4.24 Similar to the case of the Thern-Lampang highway, the main savingswill result from the reduction in transport costs due to the improved roadconditions, and there would be some additional saving from the shortenedd iving ^4st1neo (4vh Ik) and the reduced maintenance reauirements. For

1973, the first year of operation of the new road, total savings would beabout USA 2.3 m4114on of hiheb savT -s due to the iimproved road con4itionsare about US$ 2.2 million.

4.25 The savings during the assumed 20-year economic life of the projectwould give a rate of ret n of aboItt 20% Evn if it is assumed that partof the road at the Loei end is inundated by the Pa Mong Dam construction (seepara 3.13 n1 Ann-ex III) 4n either 10 years or 5 years after the opening ofthe road, (around 1982 and 1977 respectively), the benefits during the short-ened life of the proJec ollAd et-ill produce rates of return of about 25%and 12%, respectively.

E. Detailed Engineerizg of Further Hjighiays

4.26 Feasibility studies have either been carried out or are beingexecuted on all of the four hIgh-ay- included in t-he proJect for detailed

engineering. The findings of the completed studies and the preliminaryindications o -h.ose .dwa .11 4"Ai,-t- th:t +t- t e is.r-,nt nhvnscal en-ndi-

tion of the highways, the traffic thereon, and the possibility of furtherdevelopment iun the regiM Gred-, are such that the construction of thesehighways comands high priority. The estimated rates of return are invari-ably high, and none of the proJects is expected to produce a rate of returnlower than 20% if project implementation follows the consultants' recommendedschedule which is phasoed over a 5-6 year per.iod in the early 1970'I. TheGovernment w111 prepare, with the assistance of the Highway Department's

- 16 -

Awis- ,cons_Ultnnts an Afivtlfi8 of traLfie composition to indicate the pro-portion of military traffic on these roads where such traffic is considered

F. EqP m=ent Mor Mechanical WorkshoD-

4.27 The benefit: derlYing from improved workshop faeilities are diffi-

cult to quantify but are undoubtedly very high in relation to the investment--volved. The Th 4 Department of Highwvays ha irn operation road mrAntenance

equipment with an original value of about US$ 50 million, including nearly'J6$ 7 mllin--rhpvue w~ h itwaUvLn Twmrn-ved wvr-kshenTTL~ . ..D 1 * .4o + h~ W4 "am R4 ghWsau Oav Timn. wrm

facilities in the 12 Divisions would enable preventive maintenance and re-paLrs to 'we carried out p.ptly Improvethe, - - -ratg efficiency Of the

road maintenance equipment and defer its replacement.

- 17 -

5.01 During n4gotiations, agreement was reached with the Government on.VLUJ..LUWJ. prLVLuJICU.p pUlub:. (i )U te U.U-u5.u VWIh LILW DBMU. o th5e

findings of the Transpbrt Coordination Study (4ars 2.04), and the f-indingisof the rWveier o trloasport of the -ThoUburi-Paktho area kpara 4.13); (ii) 1;hewidening and extension of roads in Thonburi and Bankok as necessary to gilveCongesti.VU-1rum u,amgu to thus -L-nounburl-rauvno iiignw&y (para 3.08); kill) lcno

operation and maind;enance of the Thonburi-Paktho highway as a controlledaccess highwAy (pora 3.09); (iv) consultation with the Bank on the possibleeffect of the Pa-Mong dam project on the Chumpae-Loei highway (paras 3.13,4.25 and Annex IIM); anid 'v the demonstration of the economic justificat:ionof each highway on which detailed engineering is to be carried out, beforsdisbursement under the Loan (paras 3.18 and 4.2* 2).

5.02 Thr project is technically weil prepared, economically justifie,and is considlered suitable for a Bank loan of US$ 23 million equivalent w.Ltha term of 20 years, including a 4½ year period of grace.

June 3, 1969

FrM.. T

THIA IL&ND

FOURTHl HIEGHWAY PICEJBT

Extract from Appraisal Report (No. TO-630a dated May 3, 1968)for Third Highway Loan No. 535-TH

2. RACKGROUND

A. 2Georaphic and Demographlic

2.01 Tlhailand has an area of approxim-aately 510,000 kin2 and a populationof ab-out 33 I-llion, si±A±d ' h lar in IUandUII UU to jdlI .a u- uuruerju

by Burma on the west, Laos on the north and east, Cambodia on the southeastarI[ fJ-lct.Ld.lya uon hIe t, uuu±.Ua.I, , minL uoastJline is on1 tu-e uuta ua oiTailand tothe south but the southerrn isthmus also borders the Indian Ocean.

2.02 For geographic and economic purposes the country may be consideredas consistinlg of Li-ve regions. The Nortnern region nas mcuntain ranges withrelativel,y narrow valleys and good rainfall; it produces agricultural Products,timuer anid minerals. The Northeastern region is a relatively dry plateau inthe catchmient basin cf the Mekong River; it is the least developed region withlargely subsistence farxing. The Central region consists of tMe broad lowlandplains of the Chao Phraya River and its tributaries; the adequate rainfall,;-nd irrigation from the rivers, make it one of the main rice-producing areasin the world; near the mouth of the Chao Phraya River is the capital city of

.angkok, which has a population of about 2 million and is the main por-l, com-mercial and industrial center. The Southern region, formLing the isthvnus ofthe Malayan peninsula, is a major producer of tin and rubber. The Souith-eastern region, lying between the central plain and the Ca.mbodian border, islargely a subsistence agricultural area with the main product being ca-s-ava.

2.03 The population is increasing rapidly, at about 3.3 percent a year.The towns are relatively small. The population is generally well distributed,although there is some concentration in the central lowland plains, especiallyaround Bangkok.

2.04 The GD?, which is now nearly US$ h.4 billion, has recently grown by7.3 percent p.a. at constant prices. It is expected to continue to grow ator near this impressive figure in the immediate future. Although Thailand isstill a relatively poor country, with a per capita income of about $130, ithaE achieved the remarkably high rate of investrment cf 22 percert of GDP, of.hich over 90 percent is derived from domestic private and public savings.

This has been accomplished with relatively sta.ble prices, which have beenrising at about 2 percent per year between 1960 and 1966. About 33 percentof the GDF is from agriculture which is growing at about 5 percent per year;manufacturing, mining and construction account for 20 percent of GDP and aregrowzing at about 13 percent per year. The growth in the GDP has been achievedm.ainly by private econoilac activity, aided by Government investment largelyfor the improvement of the infrastructure concerned with agriculture, trans-portation sanr powier.

imU13; J.avUes referred to are tnuoe il Report lno. TU-63Ua.

AiNIv=EX IPage 2

B. The Transpcrt Sector

a) General

2.05 Transportation in Thailand has been influenced by three main factors:(a) mcst of the mountain ringes and rivers riun from north to south: (b) theurban centers are located milostly in the lower Central region while (c) mostfr,od_Xrowingalr -n. nrt firrl.he.r nnrl.h ard u,miilc llv s1nor the rivers and canals.A large part. of the :souithbound traffi.c consists of agricultura3l produce, whicti -crr-i ed- ti +he fnroi -rns,i rivi nr- 4nd nrnro'esi cet rers of the lclwAer Centr:i 1

rel(ion and al.;3m to the Port (i' B-angkok for export, while the north;-bound1.r.-f' -f-f-Ti ,-c r..rm-~-:~z.r ' Yz -i rinriri Ped or-v do;n esici l 1 rnanlif-ir-+-i!rPd r,nnrwii, r n rC ;

2.0 Te rPes -lt, i qs th,I+ on +he iJiI p +J tphe crne,r±.iir1

ri mainr t.rnnpor1-.

arteries run f'rom northll to south, with a lateral network of secondary roadsfeeding into them. Co.mun, icaticn from east to weest is less developed duemainly to the difficult terrain which entails the crossing of' several moun-

iL 4' I1 - - .L- - J 14-U±±-- , ~~ '~ ~~ 4~4

2.07 ~ P. -xcp "or Ile ra`l-wayo, there. are no satisfcoyt.ffcttstics on passenger and freight by mode of surface transport. Nevertheless,thle lndiLrec:tl e-vidence ind-1icates that hiu wJ trnpr has hen- zn-La

sUCch a rapid rate in the last ten years that is is now by far the mo5tIijpu. batll iIdrnsLorULl Ufodle.

b) iiie-

..Ou Tl*i major arteries of the road network radiate from Bang'kok (see'Iap). Highway development was generally slol' until the early l96015. Betuveen

I r ', r' . I a/ / - -1-- I -__ I -1 - - 12 __ * -- _1_ 11_ 6 196 n li yuI It, nie acceleratJed anU th:e naiLonal net1worki, under the Jul15 -dictiion of the Department of Highways, has increased from 8,300 km to over10,300 kin. Te len-tLh of paved rcads h6 brown from 2,80U km to nearlya 5,400km during the same period. Nevertheless, the present system is inadequateeven ior the ex.isting traffic, and major improvements will 'be needed to carrythe increasing traffic to be expected as the economy develops.

2L.09 To overcome the in.:dequacies of the road network, the Governmentis placinE, special emphwasis cn highway imnprovements in its transport i.nvest-ment. program. Its "'highway Construction and Improvement Plan, 1965-l971",envisages -an investment of nearly IU$ 400 million for the construction, orreconstruction cf l,500 km of roads, including a small number of four-laneroads, and the paving of 3,lC0 kmr of existing roads. The propoEed Thi.rdHrighway Project constitute: an integral part of the Plan, as wa_s the eO-rlier;2econd Highlway Project fin-anced by the Bank.

c) Rail.ways

2.10 The Thailand State Railway system consists of about 3,700 km ofmeter-gauge mainline track, radiating f'rom Bangkok; the principal lines ru.from north to south, as in thie case of other transpor-t modes. There- hlivebeen threej Bank loans for railway projects, the last (Loan No. 280-THi) ofU.J$ l.6 million, being to finance part of the Third Railway InvestmentProgram, 1961-1966. Performance has been generally satisfactory, blt, -therehave been some design and location difficulties leading to delays and cor:-aletion of tuhe Drom ram is now expected byi about the end of 1'69. Thue .tate

ANNEX IPare 3

it litla;js have prepared a newi live-year investmernt procram to be included i.tOle DLeco3nd NQtionai Economic Development Plan, Fisdai tear 1367-71. 'hlisnew program -will require an excpenditure of abotit U,•$.) 90 million ecuivalentinsanly for the purchase of rotling stockt, relaiying of traciks and replacementof buildings and maintenance equipment. Lhe foreign exchange requirementiE estimated at about U1S$ 41 million. A Bank appraisal of thils anveatmentprogram is under way.

'.11 Carload freight traffic, which has been growing at an inriual ratsof about 6 percent during the past six years, amounted to -bouit 1.6 billionton-km, in 196(6. The average haul was 385 km and has ibeen increasing slowly.The major commodities carried are rice, petroleum pro&ucts, lumber, cementand clinker; these, in 1966, accounted for over 60 percent of the carloadtraffic in teras of ton-km and 45 percent of the tctLol carload freight re-venue. The volume of passenger tra.ffic has been increasing at slightly over5 percent per annum and totalled 3.2 billion passenger-km in 1966.

d) Inland '.4aterways

2.1? The 1,600 kmu inland waterways system, based oni th e (lTao Phraya Riverand its tributaries and on canals linking these rivers, serves a farmo nopula-tioil of about 9-10 million in the Central Plain. More -thain 80 percent of thecountry's annLlal rice crous of 10 million tons move orver the waterwav sxrstem-This is more than twice the total tonnage h,ndled annually by the railwJy.Nearly 2 million tons of the rice moved bv wrTater are o,resentlv Echi need to ihePert, of Bangk;k-, where they are tranls-shiplped to ocean-going vessels for ex-port; they br:ine in nearly L0 Dprcent of na N nxnort earnings. Iraddition, considerable quantities of tealc are floated in rafts over the water-w,ays to the Port of Rirrkok for mnnrt_ The re-vpnr traff-icn rinslst9nninly

of consumer ,Dods. There is also a large volume of passenger traffic on thewaterways.

?, 1 I pThi 1 s the 1.+P-Tnanrl t i mrn r+nnop - q r-o"Pr,ni nzc'A b,r A %n lvern---n4r

little serious effort has so far been m ade to improve their physical con-dition and make use of their econom c potential. Inadequate atteni on hasresulted in pDor maintenance of the waterways with a resultant reduction indenth of' wa-ter available for nav.rigation.

'.lh The little that ha's been invested in the naterwnys #-,, i

past has been spent on projects prepared in complete isolation from other modesrof' +rcncport.+ TVh. pl anr.ed4t ranort.- ,.rn.a4 .- I.; _ c4 ..-... AEs:4..4 1..-. 4 1_1' Fs , ' ; VoXassu nxia;spJ:; UJ t>/'.± tAJSJC' IICI .J WU.S U , iAJ_ U 1J It I U.L

will review thie problem of the development cf the inland waterway systemn.

C. Transoort Coordination

2.15 RespDoisibility for the administration of the transport system is4~.Vt'L dAe 1WL 5r JiUtI . IblUiiU±Lt5 dUlU VI:La ±U~* jlP-;videJ among a numlbe r o f egacie anSu,.i.t1rs h ate Railway-

is an autonomous entity with its own Board of Directors, falling under thegenci-e ra upe of r theL Ui UUIwuQuLiucl tUnIlb uie Department ofHighways is in the Ministry of National Develop.ment. Other PFinistries, suchas Agricul tuora, build miLnor roads wiTn little consultation Ttth the HighwayDepartment. Jurisdiction over the extensive inland waterways system isdivided amonig three different agencies witnout a reguiar means of^ consult-ation between them. Consequently, there is no joint formulation of invest-ment and operational policies in transportation. In theory, the National

Eccnomic Development Board should be in charge of coordinationi of transport,but this agency haE so far been unable to cope with the probl er due t,o lacckof exoperienced and trained personnel. In practice, the 1-.ck of a system-atic poli cy o' 'transport coordination has not led to any serious distortiorisin the use of trann.port,ation resources so far. However, the rapiA develop-ment in the tran3port sector in recent ye.srb sugg,-ests thEat thiis may not bethe case much loneger.

2.1 Coincident with the rapid increase in overland traffic during thepaist decade there, hae been a marked change in the structurre of the traniportsystoe,i, with road transiport replacing the r.ailways as the main carrier ofinter-city freight. The present indication,; are -that road transport willcontinuLle t.o inrrease its sh:are in the fore c:eable future. In view of thiach_inging structure and the need tOI large scale investmnents throulghout Vtretrz nsp,-ort 6ector, the Governmrient must give increasing attention to the pro-bleris of transport coordination. T'Ihe bas ic means to this and woul]d be theestablishment of an organizationr! f'or coordination of investments and theformilation of a ration-il pri_cin2 policy for the tranoport sector.

2,l7 The Gcvernment1 is keenly aware cf' this need and Qroposes to carryvout a Trarnsport Coordination ::,tudy which Jiill provide gui-delines f'cr organiz-ins the coordin,ating machinery, for preparinq: investment proglarams for thevarious modes of tr,-nsport, and for improving regulation of transport activ-ities. The Government hLs approached USAID to finance the study whirch wqouil(ibe carried cut by Consultants. Terms of Reference were drafted by the Bankin 1966 but their final .agreement has taken lor-er than exri.ected becaueTJhtIDI wished to explore the p6ssibility of including them in a larger study.This led to financinc:n difficultips. howevar. and the cnripina1 TPmri! of Refer-ence have now being finalized by the Thai Government and UL AID -with a viewto commencingt t uyP r-:ti rhT in irni -1 9e8 ainn corr 7eting it in the s econd halfi of1)62. Any major improvements in transport coordination will have to awaitthe completion of the Study. It is expected that the Study will deal atlength withi the problemns of road-rail competition and the appropria-te levelsof' user ch.--rg,es. A detailed d(iscussion sf te sub,,ects w -a inAcle ir

paras. 30 and 34 of the appraisal report for the Second Highway Project (TC->JJ' 1:,

1-l I I9QI4A) and in C th tLCj U-T n>mi r nS-, 15,t£-WI'c'36

and is not repeated in this report.

June 3, 1969

ANNEX II

THA ILAND

FOURTH HIGHWAY PROJECT

Extract from Appraisal Report (No. TO-630a dated MaY 3, 1968)for Third High-ay Loan No. 535-TH

3. TIME HIGHA-Y SECT01R

A. The HiEhway NeUtork

3.(1 The highway network consists of three classes of roads: primaryand secondar wroad *.^.Thich t-o.ge ther form the n.ti onal sstern and feeder

(tdrtiary) roads. The primary roads total 4,700 km of which 3,100 km, or 66percent, are paved. The secondary roads total ,6)00 ¼rr., of n-'hic h 2)2 krnjor )1X0 percent, are paved. The total length of feeder roads is approximately7,000 km of which a negligible amolnt is paved. The +ot-al length of the nret-work is therefore about 17,000 km; that is about 35 ko per 1,000 1m2 of landarea or I.° k,m per I n0n populat-ol T-rresponA, f rnn anA

Spain, for example, are 20 and 200 kn per 1,000 km2 , and 160 and 1,280O km per

, ~ ~ ~ ~ ~ ~ 4 4An) 4-e 4.-n

3.0 The first tuask in thel- Govuerrl-lken 'Is road Udevelopment protgraon, ha, s 1b-orn

to provide an adequate national system of all-weather primary and secondaryroa'us. As tULis needU ls gradually bLe4ing ;.et, tIe GU'vlernment is now 4- gi n4

increasing emphasis to improvement and construction of feeder roads. Toassist in thi;s the Bank financed a stud",y of 2,000 km of feeder roads underthe First Highway Loan (341-THi) and the detailed engineering of about 635 kmof roads, to be selec-ted on the basis of th1e study-, is incluued in tile propos-

ed project.

B. Characteristics and Growth of Road Traffic

3.03 The total vehicle fleet has grown from 88,000 in 1959 to over 206,(00in 1966. This iS equivalent to an annual growtn rate Uo about 1) percunibt, adi1

is expected to continue in. the immediatelyforeseeable future. The annualgrowth rate for trucks has been 16 percent, for cars i2 percent and for buie;i6 percent (see Table 1).

3.o4 d.ith the improvement of the national road system, there hlas been agradual rise in the proportion of vehicles registered outside the Bangkokmetropolita'n area, from 43 percent in 1959 to 47 percent in 1966.

3.C05 It is difficult to determine precise volumes of highway passenge:rand freight traffic. Rough estlmates can be made, h-iowever, on the basis olthe growth of the vehicle fleet, changes in the location of registrations(see Table 1), and in motor fuel consumption (see Table 2). The volume of

road freight :Ls estimated to have increased by over 5 times from about 900million ton-kin in 1955 to around 5,000 million ton-km in 1966. Rail traffic

NOTE: Tables referred to are those in Report No. TO-630a.

AMNT7Y TIPagre 2

[n the sam-e perlcud h'as 'le-s t h -n douibled _rom 87C, r,il-lion to-X i.n 19ff7 tabolut 1,600 million ton-km in 1966. It is therefore probable that roantraffic is no-w o-ver three tinlco the -volumle of rail traffic.

C. rHihway Ahdminisftrationo

3q06 Tne Department of Hlighways ir, the Plnistry of Nat.ional De-velopM1entis the executive authority re_ponsible for the construction, maintenance andadminiStration of all national (prlimary and secondary) roada and the moreirmportant feeder roads. Minor feeder roads are maintained by provincialatlorities under the Ministry of the Interior. The Irrigation Department

and the Mfinistry of Agriculture construct minor roads to give access for theopera-tion and rrmaintenance of irrigation system,,. in cases wnere appreciablepublic traffic develops s.uch roads are taken over by the Department of HLigh-ways and incl-uded in the feeder road system. A special force of' HighwayrPolice has been asigned tc patrol roads in the Bangkok area; their dutiesincilude the enocrcemaint of reguiations on vehicie weights and dimensions andtheir cost of about U62$ 0.7 million equivalent p.a. is included in the budget-ary provision for highways (sec Table 3).

3.07 The reorg,anization of the Department of Highways in accordance withrecommendations of Public Administration Service, orn the basic: of studiesfi-nanced by the IJ AID, ,;as begun in 1ltz4 and ha-.6 now been carried out (seethe attach,ed Or-anization Ch.rt.). Posts have been filled by recruitment ofT}ai personnel. Better mainteu:arce, planning, construction and cost account-ing methods- are being introducad and headqou:rt.cr and field mechanical shopsand laboratories _re bcing extended and im.proved; in this, and in carry--ing out,training programs, the IlK consulting firn,, T.P. O'ullivan and PFrtners, ixpro-vidin.L assi.stance urder a contract financed by the First Highway Loan(3141-TI')-

3.08 The training prograrr far haad^u;-rter.s technical staff emphas7zoc ^n-the -job instruction through Tli.-i counterpart staff working with the consult-int.

staff.. Field training of rooad supervisors, and of mechanical equi-nert oper-

ators. and irmaintenance staff, i s b-i4g carried out at local centers ec.ui,npreed arf.

financed by Japan, 1116w ZealPndl and. the UL3A. Facilities are rot, however,

available in ThLiland for mronr advan-ed speci..e.ized training of senior staff

in such subjec-l-t.. as hiFhway, traffic, soils and mechanical engineerin!-. ThIe

D-s,artment ha.i s.o far sent 11 engineers on such courses, financed cy the Fir-t

..ighway Project, 341-TT{, in the JUSA, Austradli. and the UK. The Dep)rtment

wisheE to send a further 20, to be financed by the proposed project. pr pro-

grar fcr such trainin£ will be -rcpared ,ith the assistance of consultant, .

Lhe trainees are required to undertake to carve the Depart;aient, on corr.;leticn

of the traininE goroerain. for a ceriod at least twice as lonPg bs the period of

thseir overseas trsininCL. Thie foreign cost of this extensicni of the e-isting,

over. eas traininrs rroerani,, is included in t.he nprocosed uro-lect (see also pa-irs..

!4 . 1.'l).

D. Tahway anig nd Finance

3.09 Hi.ghwa7r planninr. is carried out by a DiviAion of the Dep.rt4mert of

1Ii,l.rvXays. AXX tr-Iffic census- is t.i.ken four times T a year , in (P tober, J.ir,T.;rv,

A.pril. and Juily. Thisa ir 1 cclde;.: counts t- ';(! statior.s on prim.iry nd .ce :11 dary

on l: edr ra'ad; ;. Add it,l onvA> Jl?1

.: are al.:.i tn nd h:, a: re~iisirc d fnr

ANNEX II

specific road improvement Drojects. An inventory of the higrhway network isb-eing conpilecd. A stlart has been mrade on the collection and analysis of avariety of statistics relating to highway traffic; these, supplemented byorigin and destination surveys, will help in the future evaluation of highuayprojects and in preparing highway programs.

3.10 H1ighway expenditure for five years to 1966 and estimated expendi-tuires for 1967 and 1968, are given in Table 3. Total expenditure has risenfrom _laht 529 rmilliorn (US$ 25 million) in 1962 to Baht 2,218 million (TISt106 million) i.n 1967. During the same period construction expenditure hasincreased from Baht 342 million to Baht 1,613 million and maintenance expend:-ture from Bahl, 99 million to Baht 24$ million; this latter, however, under-states the truie increase in the maintenance expenditure as maintenance finirnsup to 1965 included the cost of administration. A comparable 1967 figureincluding administration would orobably be about Baht. 360 nrillion The brdgetfor 1968 is for a total expenditure of Baht 2,398 million, of -which Baht 323million is for mnaintenance.

'Hti hve-rv inic;n .and fonstrurrt no

3.11 aorichway de-sgn is carri-ed out hr thei Location and DeT.zn Division of'- t1 1 d -- - __ --- E.

the Department of Highways, and by consultants engaged for specific projects,narticularly fort +1he 1-arger ones or for th+se of a morn.e cormplicated nat'r'.

The design standards used for different classes of roads are given in Table I-nd they re considered s-n l -kin for th- various conditions of' t atEraffic indicated.

3.12 Almost 90 percent of road construction is now carried out by contract.I;ost of' the larger contracts, including those under the two previouLs BDank pro-jects, are being executed by foreign contractors, but many smaller worksfinanced troAll the Lbujget are being carrrLieu out uy local contrauuctors. r orceaccount construction is IIOw largely confined to minor improvement and pavingwork- and tuo construction of lows cost feeder roads. About US$. .10 million ofthis work is being financed by UBAID under a rural development program in the.Jortheater-n xre-y11in.

r. Hgh-way- Ilaint,erianc;e"i IT y1 Mthintenancenc

3.I3 J Maintenance of highways is the responsibility of the MaintenanceDivision of the Department of Highways which has a headquarters supervisorysection and t-wieive field Divisions each subdivided into a headquarters andthree to five Districts. The total number of Districts is 50 (see Chart-showing organization). There has been considerable improvement in highwaymairitenance over the last fewi years attributable to (i) the reorganizationand training which has taken place con the advice, and with the continuinghelp, of consultants, (ii) increased maintenance funds (para. 3.10) and (iii)the provisioni of addi-tional mechanical equipment including the purchasesfinanced under the First Highway Loan (341-TH). The improveme(nt of main-tenance operations is continuing with thie assistance of the consultants.Measures include the introduction of better techniques , of new systems of'works costing ond programming, and the training of' field staff. Facilitiesfor servicing mechanical equipment are being improved. The aim is, by 1570,to provide workshops at a cost of about US$ 150,000 each for the five Divi-sions at pres-ent with inadequate facilities and where equipment has to betransported long distances for repair.

ANNT'P TI

Page l;-

3.11i -With the improvement in operational and adminintrative efficiencyvand the increase in budget allocations, the available budget fund is adeGuatefor routine maintenance operations and an increasing amount of neriodic main-tenance. However, budget allocations should continue to increaze to copeadenuatelv with additional work caused by increasinp traffic vo1-Tmes; sEUCh

work would consist chiefly of resurfacing of bitumen roads and regraveling,with major resnapinp wher reneessary. of gravel roads. Sci .maintenanceaillocations wil, be required on some lengths of bitumen roads which wereconstructed to low sneificntions some yrears ago and which are deterioratinaunder the increasing load of traffic. During negotiations the Governmentagreed that it~ will continule to~ lrwcvid ade<ua *nXrrbs fcr tneF t.h in-creasing requirements for road mainitenance.

June 3, 1969

~TANNETY TTT

THAILAND

FOURTH HIGHWAY PROJECT

Chiuppae-Loei Road: Possible F4ffect ofPa Mong Dam ProAect

1. The Chumpae-Loei Road may be affected by flooding if the Pa MongDam on the Mekong River is constructed. The northern part of the road, and

the town of Loei (population about 10,000), lie in the valley of the Loe:LRiver, which is a tributary of the Mekong River and would form part of the

reservoir, extending for several hundred kilometers along the Mekong River

and its tributaries above the Dam site.

2. A study for the proposed Pa Mong multipurpose dam project ispresently being carried out by the US Bureau of Reclamation under agreementwith the US Agency for International Development, for the Committee forCoordination of Investigations of the Lower Mekong Basin set up by the Gov-

ernments of Cambodia, Laos, Thailand and Viet-Nam. The study was divided

into three separate phases. Phase I was completed in June 1966 and Stage IInterim Report on Phase II was issued in December 1968 1/, and covers themajor project structures, initial power development, and initial irrigatlon.

The full StELge I report is due at the end of 1969, but a date has not yet,been established for completion of the Phase II study of the full project.

3. AJthough the Interim Report shows that a substantial part of theroad is likely to be affected, the extent and timing of the flooding, if

the project is undertaken, are uncertain. To establish with any accuracythe area which may be inundated, it will be necessary to map the very large

area of the reservoir and to estimate the water level for the dam. From the

water level of about 250 meters tentatively indicated in the interim report,

and the relatively small scale maps so far available, it seems likely that

the town of Loei might be flooded as well as at least 30 km of the road, and

possibly 80 km under less favorable conditions.

4. If the dam is constructed, the investment induced by the proposed

highwav improvement prolect would be lost. However, such losses could be

minimized by Government measures to discourage new investments in the region

if the dam construetion is finally agreed upon. In this case, the project

justificaticn is not affected because no generated traffic is included in

the rate of return estimates. Moreover, it should be pointed out that the

activities associated with the dam construction might possibly increase

trffic on the ra before being flooded, thereby enhancing the economicjustification of the project.

1/ Pa Mong Project, Lower Mekong Basinl969 Sta I Interim Report

Bureau of Reclamation,United States Department of the interior

ANNEX IIIPage 2

5. The timing of construction of the dam, if undertaken, is uncertain.The proposed installation schedule and assumed construction schedules, givenin the Interim Report, suggest that the first generator units could be re-quired by the end of 1982, but that preparatory works involving relocationand resettlement may begin some years earlier. The report recommends thatin addition to mapping, studies are required on such matters as land use.resettlement and relocation. In the meantime, there is insufficient infor-mation to consider an alternative route for the road. A decision on thelocation of the town of Loei would first be required; also a new road locatedto avoid areas sublect to eventual flooding is likely to be considerably re-moved from the present route and would therefore not serve the existing com-munities.

6. In view of these uncertainties, the proiect annraisal was basedon various assumed periods of life of the road, that is 20, 10 and 5 years.

June 3, 1969

TABLE 1

THAILAND

FOURTH HIGHIAY PROJECT

Motor Ieh4i_le Reistration

Motor cycles+tricycles

Cars Buses Trucks and others Tot-al

1959 4.2,800 12,800 28,500 3,600 87,7(0

1964 73,700 23,500 62,200 9,100 168,5(0

1965 E83,145 17,902 64,485 9,693 175,225

1966 9-6,576 18,617 79,105 12,013 206,3:!l

1967 11.8,849 17,257 90,057 14,504 240,667

1968 128,570 23,980 97,180 17,750 267,430

ULJLLSi LJC C _LLDiI LU I 1 L LWV

March 7, 1969

TABLE 2

'P1A TT A NM

FOU.RTH H.ITrGJAY PAT(ECT

Civilian Consumption of Motor Fuels

Gasoline Diesel Oil*

(index) (index)

51 31 10C,

44U ~~~L%UJJL

LID -1617 .207 2

60 '-~~70 17 28 301~

61. 478U 173 )L47 )f

tA ~~ ~ ~ ~~~~I 9, n II I1. r',I ?r0/2 4l 49 U

, ~~~~~~ L~~r,

63 553 200 556 598

6) I -'0, CN,- In654 62 220 31 9121

66 637 230 1191 1251

67 604 2147 1464 157)4

* There is no accurate record of the proportion consumed fortransportV and non-tvransportlv purpycoes. Thel best stimtavailable ia that in recent years about three-quarters ofthefl tota'l consum-,ption 'Ls accounted for 1by tranisporit users.

Soource: 01 A) L.l UVL1WiPL1,.a.UL Lf ThaiLand LJLimted,

Department of Highways

March 7, 197u

TABLE 3

THAILAND

FOURTH HIGIJ%AY PROJECT

Highway Expenditures(Baht million)

2°/ U"$ MillionYp:a-r iqi nt. n rn.n Admini strtion Cinstruction Tnt.al 7quiv arnlen+

1962 9 88 3L�2 529 25

1963n 15:3 121 1.36 71 c' 1'4'- 71.'- r4'

1 o(-z ,), 91A L OR o '

C.)6oni n .. 201A. 2) o I

19z8~~~~4 f2 e 43 -s I,3* 23l; L

()Estimated

I/ Up to and -includinig, 1965, Administration charges arising frommaintenance operations were included under the Maintenance heading.From 1966 they have been included under the Administration heading.

2/ Administration charges include the cost of Special High?way policepatrols.

3/ Budget for 1969.

Source: Department of Highways

March 7, 1969

TABLE 4THAILAND

FOURTH HIGHWAY PROJECT

Design Standards for Two-Lane Primary and Secondary Highwa s (Rural)

1. Bridge width: 8 m minimum2. Vertical clearance: 4.50 m3. Design wheel load (pavement): 10,000 - 12,000 lb.L. Design bridge loading: H 20 - S 16

5. Geometric Design Features:

Flat and Moder- Rolling and Mountainousately Rollin_ Hilly and Alpine

(a) PrimarvDesign speed (km/h) 80-100 60-80 50-60Mawi mim gFradi Rnt, 6% 8%Right. of way (m) 60- 80 60-80 60-80

(b) OecondaryDesign speed (km/h) 70-90 55-70 40-55Maximum gradient 6' 8% 10%Right of way (m) hn-60 40-60 -40bO

6. nod 'J eatures:Primary Secondar

a________ .A s . . . _s _ _ , _

1A",nua equ-ivalentIIaverage daily below above belowtraffic (ADT)V/ 8000=Looo LO nn in Cn00 1500

Suggested surface high. inter- inter- inter- inter-me- 14 Me o U1 A U.L C AU 4 U.. U- J A U L ,. 4U

to lowNaiLUr uo buriac±Ir.g(m) 7.00-6.50 6.50-6.00 6.o0 6.00 5.50

'WNld'h of shIoulder(mi) flat ter-

?~~~~~ /' n .t ,. r ^, r , r', ^ n nn 0 nn ,7 rrain- . LU.U).) .uu 6 .U )

Width of roadbed 2/ 12 i 10 10 9

1/ AnT based on '-year t 'ralfic --- t-4 using te f w 1aors:Li A I u au UI f y~J L ,k, L-LU11, U -I UALI, LV'±L.UW±12.I ± Cu UI

(a) Trucks and buses (3T and over): 2 in flat and rolling terrain3 ir m.ountlainous tUerraiJLn1

(b) All other motor vehicles : 1

2/ Widths reduced in mountainous terrain

Source: Department of Highwoys

ilarch 7, 1969

TABLE 5THAIIAND

FOURTH HIGHWAY PROJECTE'sti4mafe of' Cost-UL L,1Id L' UL AJIu

Ti I.. iTr't- I. , Longth J (m1-llions) US$p \uhiiorL"U1 Fore gn{~~) ~Local.Foreign Total Local Foreign Total Exc LaE.

A. Construction andImprovement

1. Thern-LalTipang 95 91 75 166 4.4 3.6 8.02. Thonburi-?aktho 87 206 168 374 9.9 8.1 18.03. Chumpae-Loei 112 109 89 198 5.0 i4.5 9.5

Sub-totLal 2914 1406 332 738 19.3 16.2 35.5 145

B. Engineering andSupervision

1. Supervision of Al.,2 & 3 above 33 33 66 1.6 1.6 3.2 50

2. Detailed engineering ofabout 5.33 km of roads: 31 31 62 1.5 1.5 3.0 50

Pattaluwg 340; (b) Sriracha-ratUaya-Rayong 177 (c) Pattaya--Sataheep 36; (d) Bangkok (Airport)-Saraburi 80.

Sub-total 64 64 128 3.1 3.1 6.2 50

C. Purchase of' WorkshopEquipment for Highway - 14 14 - 0.7 0.7 100Maintenance

D. ContingencyAjllowances

(a) On Item A 15% 60 50 110 2.9 2.4 5.3 45(i) 10% quantity

(ii) 5% price escalation(b) On Item 13 15p 10 10 20 0.5 C) .5 1.0 50

Sub-total 70 60 130 3.4 2.9 6.3

Total Project Cost 540 470 1,010 25.8 22.9 48.7

(c) Rounding off C).1

Foreign exchange component 23.0(nnr amouint of loan) -c

Source: Department of Highways and Consulting Engineers

May 22, 1969

TABLE 6

THA2Iri aI IUND

rFOUvR mTH -IGlvAY -ROJE4T

Vehicle Operating Costs in Flat Country for Inter-Urban Roads(iri USO per kun; net of taxes)

Average Passenger Car Ten-ton Capacity Truck

Types of Road Types of RoadGood Average Average Good Average AveragePaved Gravel Earth Paved Gravel Earth

Operating speed km/h 80 64 56 72 56 48

Motor fuel 0.41 o.43 o.50 1.14 1.35 1.59

Lubrication 0.02 0.03 0.°4 o.o6 0.09 0.12

Tires 0.13 0.26 0.46 1.96 3.93 8.85

Spare parts 0.23 0.29 0.39 1.71 2.56 4.25

Maintenance labor 0.03 0.03 0.o4 0.1-3 0.19 0.33

Depreciation 0.67 0.93 1.27 1.93 2.96 4.88

Interest 0.52 0.66 0.73 1.16 1.50 1.77

Drivers' wages - - - 1.32 1.70 1.98

Overheads - - 0.20 0.20 0.3

2.01 2.63 3.43 9.61 14.48 24.07

Index loo 1 171 loo 11 250

Source: Consultants

M4arch 7, 1969

THAILAND: F'ROPOSEI) FOURTH HIGHWAY PROJECTORGANIZATION OF DEPARTMENT OF HIGHWAYS

E DIRECTOR GENERAL ]

DEPUTY DIRECTOFR GENERAL FOR ADMINISTRATION DEPUTY DIRECTOR GENERAL FOR ENGINEERING73

| , I l l ~~ ~ ~ ~~I I x 1 1GENERAL SERVICES FINANCE PR7OCURENIENT HEALTH SERVICES PLANNING LOCATION AND DESIGN MATERIALS LAND REOUISITION TRAININGDIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION DIVISION

Personnel Management B.udge.ig Purchosing .e..Ruartens and Field Planning and Prognammig Su-sri; Testing L.boroto.y Lond Valu-t-o, Negotiation Maonpoaen /1nOV.1Records M gnogemenl Accounting Warehousing Medical and Dental Staistics Location Field Testing and Control -d Acquis tion Pesonnal TrII. ngMoil -nd Me.ssenger Cash Mangement Pay Coenocts and Sr-ices Mapping and Pnintiitg Design af Roads isd Materials Research Land Reco-dsSe-aic-s and Pre-A.dir Pne-Ouoldicotin 01 Troffic nod Rood titety Bridiles Legal Ser-iceni

Admnistation .1 lark CotitroctorsFir-te.d Higheoy Icentory Contttl of_r _ ec_ s Buildings and_

Eg_ .i

E DEPUTY DIRICTOR GENERAL FOR OPERATIONS ]CONSTRUCTION MAINTENANCE EOUI'MENT PROVINCIAL ROADS

DIVISION DIVISION DIVISION DIVISION

Construcion and Maintennce Inspections INorkshops Moten..ce, ConstructionImlpro.em..t and Super.iriion carts Storage and Susply and Inprovemen- t fSupercision Pgr-rams Equipment Monoge-et, Pr-ci-1 Roads

Rspcrts on Cofiircctnr Inspe-tior amPsrtormaren Records_

77 AKORN]F 1 ] F77~~~~~~~~~~~~~~~~~~~~~~~PITS40UKE F7INGA 1 PFRAE 1 JKIOR 7 77

L'NS~AM PBCLOPE ARN KHON KAEN L J UROL 12 FIELD DIVISIONS

SOLIRCE Department of Highvtyscy F_y 1969 _ - (2R)IBRD-3556

L~~~ IIt~~~~~~E~~~t ~ ~~ _____J -~~~~~~~~~~ J 7u~~~~~~~ -J _____ oOi~~~~~~~- - -

6TSZ -(MO 6961 ABVMN2E'

I< S A V I V W 'j ..

| W001 Sz 05 SZ 0 \ d \

|.u 2Oo,S 0 SZ 09 9z 0 M 1 pDD9UmI.., e<

uHflw ~ s w.-d pw 01 4 O u0

3.10 )lvaaluwp-ue uoprUs° -MI t1~ .E . . 1 94La-Sss tllLazua>odlloeufulsO ulU4d tb

SAv,YDIl Dlt4 Duo;s lND -0 ;uo 6

| >18M1N WtMHOIH 1VNOllUNo .U tCN'vii I3 1VH

j~~~yIo44 n 9

C ,,,- , a/D!S J° i/~~~~~~~~~~~~~~~~~~~qng &, ..

I1 G 2D W IV D d.k4a . ,

'. .,,,........ ..............................................

s % X ~ ~ ~~~~~~~~~~~~~~~~~~~~~S ' 04 N

t q > 4 X 0 8 { w(58$ ;0 806unly6uod q p4a

A f} -< ; oin~uars4.0-- >1 *

.. e 2. t ;,lf = 7 .|~~~~~~A