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									Public Disclosure Authorized



                                                                         Document of
                                                                   The World Bank
                                                                 FOR OFFICIAL USE ONLY




                                                                                                                 ReportNo. 9243
Public Disclosure Authorized




                                                             PROJECT COMPLETIONREPORT



                                                                   REPUBLIC OF KOREA
Public Disclosure Authorized




                                                                HIGHWAY SECTOR PROJECT
                                                                   (LOAN 2392-KO)




                                                                   DECEMBER 28, 1990
Public Disclosure Authorized




                                InfrastructureDivision
                                Country Department II
                                Asia RegionalOffice

                               This document has a restricted distribution and may be used by recipientsonly in the perfonnance of
                               their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
                    Republic of Korea
          Highway Sector Project - Loan 2392-KO


                       CURRENCYEOUIVALENTS

                     Currency    Unit   - Won (W)

                US$1                 W650 (at   completion)
                US$l             -   W745 (at   appraisal)


                               FISCAL YEAR

                     January 1 - December 31


                       WEIGHTSANDMEASURES

1   meter (m)                           -    39.37 inches (in)
1   square meter (sq m)                 -    10.8 square feet (sq ft)
1   cubic meter (cu m)                  -    35.3 cubic feet (cu ft)
1   kilometer   (km)                    -     0.62 mile (mi)
1   square kilometer (sq km)            -     0.386 square mile (sq mi)
1   hectare   (ha)                      -    10,000 square meters (sq m) or
                                              2.47 acres (ac)


                    ABBREVIATIONSAND ACRONYMS

BPR             -    Bureau of Public Roads
DBST            -    Double BituminousSurface Treatment
EPB             -    Economic Planning Bureau
FFYP            -   Fifth Five-YearDevelopmentPlan (1982-1936)
KAIST           -   Korean Advanced Instituteof Science and Technology
KHC             -   Korea Highway Corporation
KMPA            -   Korean Maritime and Port Administration
KNR             -    Korean National Railroad
KRIHS           -   Korea Research Institute for Human Settlements
KTI             -    Korea Transport Institute
MCI             -   Ministry of Commerce and Industry
MOC             -   Ministry of Construction
MOER            -    Ministry of Energy and Resources
MOF             -   Ministry     of Finance
MOHA            -   Ministry     of Some Affairs
MOT             -   Ministry     of Traasport
OSROK           -    Office of Supply,       Republic of Korea
RCO             -    Regional Construction Office
ROK             -    Republic of Korea
UNDP            -    United Nations DevelopmentProgramme
                                                                                                    USE ONLY
                                                                                          FOROFFICIAL
                                                  THEWORLD BANK
                                                           D.C 20433
                                                 Washington,
                                                        U.S.A.

Office of Director-General
 Operatbom    EvaaItaion




                                                                                December 28, 1990



                         MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT

       SUBJECT:              Project Completion Report on Korea Highway Sector Project
                             (Loan 2392-KO)


                   Attached, for information, is a copy of a report entitled "Project
       Completion Report on Korea Highway Sector Project (Loan 2392-KO)" prepared by the
       Asia Regional Office. No audit of this project has been made by the Operations
       Evaluation Department at this time.




       Attachment




              Thisdocumenthas a restricted     distribution may be used by recipients
                                                          and                         only in the performance
              of theirofficialduties. Its contents may nototherwisebe disclosedwithoutWorldBankauthorization.
                                                                                     FOR OFFICIALUSE ONLY
                                        REPUBLIC OF KOREA

                           HIGHWAY SECTOR PROJECT - LOAN 2392-KO

                                   PROJECT COMPLETION REPORT



                                        Table of Contents


                                                                                              Page No.


Preface        . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           i
Basic Data Sheets .......      .. . . ..                                                      ii
Evaluation Summary           ..                                                              . v..............
                                                                                                V
Overview by the Bank .i.i.i....................                                           . Vii
      Table 1. Related Bank Loans and/or Credits . . . . . . . . .                        . . xx
      Table 2. Project Implementation .i..............                                      . XXi
      Table 3. Project Costs and Financing of Program . . . . . .                         . xxii
      Table 4. Studies . . . . . . . . . . . . . . . . . . . ... .                        . xxiii
      Table 5. Compliance with Loan Covenants . . . . . . . . . .                         . xxiv
      Table 6A. Appraisal Estimate of Highway Investment Program:
                  Expendituresfor 1982-86 . . . . . . . . . . . .                         . xxvii
      Table 6B. Actual Highway Investment: Expenditures for 1982-88                       . xxix
      Map - No. 16730R2 - Highway Sector Project . . . . . . . . .                        .       xxxi

PROJECT COMPLETION REPORT BY THE BORROWER
A. PROVINCIAL AND COUNTY ROAD DEVELOpMENT BY MINISTRY OF HOME AFFAIRS
            PREAMBLE . . . . . . . . . . . . . . . . . . . . . . . . . . 1
    I.      INTRODUCTION.2
   II.      PROJECT IDENTIFICATION,PREPARATION AND APPRAISAL . . . . . . 2
  III.      IMPLEMENTATION .......................
                                                 .                       4
   IV.      ECONOMIC EVALUATION ....................
                                                   .                     5
    V.      CONCLUSIONS ........................
                                               .                         5
            TABLES - 1. Ex-post and Original Estimates of Economic Rates
                            of Return   . . . . . . . . . . . . . . . . .6
                     2. Actual and Forecast Estimates of Project Cost . 11
                     3. Actual and Forecast Traffic, 1985 . . . . . . . 16
            MAP (by MOHA) .1.9....................                    . 19

B.   PROVINCIAL AND NATIONAL ROAD IMPROVEMENT BY MINISTRY OF CONSTRUCTION
     1.      INTRODUCTION.20
     2.     MOC (BPR) . . . . . . . . . . . . . . . . . . . . . . . . . 20
     3.     CONSULTANT'STEAM . . . . . . . . . . . . . . . . . . . . . 21
     4.     CONTRACTORS . . . . . . . . . . . . . . . . . . . . . . . . 23
     5.     THE BANK           ..                                         23
            TABLES - 1. Actual and Expected Project Implementation . . 24
                      2. Actual and Forecast Estimates of Project Cost . 26
                          3. Actual and Forecast Traffic           (1984-1986)      . .   .   .     31
                       4. Ex-post and Original Estimates of                Economic Rates
                            of Return . . . . . . . .   . .                . . . . . . .            33
                       5. Project ImplementationSchedule .                 . . . . . . .            35
                       6. Project Cost Summary . . . . . .                 . . . . . . .            36
                       7. Equipment Procured under Loan . .                . . . . . . .            38
              MAP (by MOC) . . . . . . . . . . . . . . . .                 . . . . . . .            39




 This document has a restricted distribution and may be used hy recipients only in the performance
 of their otlicial duties. Its contents may not otherwise be disclosed without World Bank authorization.
                                      -i-



                               REPUBLIC OF KOREA
                     HIGHWAY SECTOR PROJECT - LOAN 2392-KO
                           PROJECT COMPLETIONREPORT
                                    Preface



            This is the Project CompletionReport (PCR) for the Highway Sector
Project in Korea for which Loan 2392-KO in the amount of US$230 million was
approvedon March 20, 1984. The loan was closed on June 30, 1989, one year
behind schedule. Disbursements  under the loan totalledUS$215.003million, and
the final disbursemeotwas made on August 3, 1989 - which time US$0.707 million
was cancelled,and a furtherUS$1.413 million was _ancelledon May 30, 1990
                     of
after reconciliation the Special Accounts.

            The PCR was jointly preparedby the Infrastructure Division, Country
DepartmentII of the Asia RegionalOffice and the Borrower and is based, inter
alia, on the Staff AppraisalReport (SAR); the Loan Agreement; supervision
reports; the Borrower'sown records;correspondence  between the Bank and the
Borrower;and internalBank memoranda.

            The draft PCR was sent to the Borrower in November 1989, for
commentsby the Ministry of Construction  and the Ministry of Home Affairs and
amended in the light of the minor commentsreceived.
             This PCR has been read by the Operations Evaluation Department. The
draft PCR was sent to the Borrower for commentson September 4, 1990. No comments
WeTe recelive:d.
                                                           .Li-

                                                REPUBLIC OF        OE
                                 RIaOAY      SECTOR PROJECT - LOAN 2392-Kg

                                          PROJECT CO0lPLETION REPORT
                                                Basic Data Sheets


                                                     mfI   DJ C DATA
                                                                                 Appraisal
        Item                                                                     Istimte                  Actual


Total Cost of Investment Progrm (US1 million)                                     1,7894(11             4,642.1(21
Total Project Coat (US$ million)                                                    462.0(31             5046
Loan Aount (U8$ *Illion)                                                           230.0                 230 0
   DLsburued                                                                                             215.0
   Cancelled  (1212166)                                                                                   10.0
              (3121169)                                                                                   2.9
              (8141S9)                                                                                    0.7
              (5130190)                                                              -                    1.4
Date PhysLeal Components Completed                                                12131187              06130/89
   ProportionCompletedby Original
     CoWl-tion Date (2)                                                             1OOS                   865
   ProportLin of Tim Overrun (2)                                                      -                    25X
Bconomlc Rats of Return of overall Project                                           331 (43               32X (51
Note:    ( 11  rom Overview Table 6A and SAR Table 4.9(b) mad represents     current    cost equivalent of $1605 Dn SAR
                  page LL nd para 5.05 for 3 yers. 1984-86.
            (21 from Overview Table 65 and represants     current cost of capltal    lnvstment   progrm for the 5 years
                  of the project, 1984-65.
            D31 CLv. Wks (Incl Land):    *440m, Eqpt: $12m (from SAR par, 5.18). TA & Trg: 810. (no cost stated      In
                  SARXbut $10. alled      in table p.21).
            (41 Pro-constructlon  eattmte    after all roads designed - no IRR gSiven L SAR except for mall
                  selectionof roads in SAR Table 5.1.
            (51 Combined IRR for all roads complated- fror rrports by MC mnd MOA.



                                                   oSm     POMiCT DM
        Item                                                            Date
                                           Planned                     Revised                   Actual

Identification                                                                                   02182
Preparatlon                                -                                                     01183
AppraisalMission                         06183                        0580$                      05/83
Lc., NegotLations                        12183                                                   12183
Board Approval                           03,84                                                 03120184
Loan Signature                             -                           -                       03122184
Loan Effectlvnesas                     06122!84                    071221U84                   081221U4
Project Completion                     06/30/6W                    06130189                    06130189
Loan ClosLng                           1213116                     12131189                    05130190
Executing Ag ncies - MlnLatry of Finance,    Mlnlstry of HSom Affairs    MUnistry of Constructlon,    MLnistry of
                     Tranport. Ministry of Enersy and Resources
Flscal Year of Borrower                                                               January 1-December31
rollow-onProject                                                                     Road Iprovemnt Project
   Loan Number                                                                              Loan 3061-.0
  AMount                                                                                  US6200 million
  Loan AgreemmntDate                                                                           05116189
                                             -iii.



                                         MISSION DATA

Stage of                Mission   No. of     Days          Expertise      Overall           Type, of
Project                Month/Yr   People   In Field       Represented   Performance         Problems
 Cycle                                                        Il]        Ratingf2]             [3]


Identification          02/82       1           7           EGR                --
Preparation             01/&3       4           7     DCH/ENG/ECN/FNA
Appraisal               05/83       3          21       EGR/ECN/RTS            -               -
Post-Appraisal I        07/83       3           7       EGR/ECN/FNA            -               -
Post-Appraisal II       10/83       3           5       EGR/ECN/FNA            -               -
Post-Appraisal III       01/84      1           5           EGR                -               -
Supervision I           04/84       3           7        EGRx2/ECN             2               0
Supervision II          08/84       2           7         ECN/EGR              -               -
Supervision III         10/84       2           7          EGP.2               1             None
Supervision IV          01/85       2           5         ECN/I&GR             -               -
Supervision V           05/85       3           8       DCH/EGR/ECN            2               0
Supervision VI          11/85       5           5    DCH/EGRx2/ECN/RTS         1(4]            -[4]
Supervision VII         03/86       3           7        EGR/ECNx2             1
Supervision VIII        10/86       3           5        EGRx2/ECN             -               -
Supervision IX          10/87       3           6       TSP/EGR/ECN            1
Supervision X           05/88       2           7         EGR/ECN              1               -
Supervision XI          11/88       2           6         TSP/EGR              1
Supervision XII         04/89       3           6       TSP/EGR/RSA            2               _

Notes: [1] EGR - Highway Engineer, ECN   Economist, TSP - Transport Specialist,
           DCH - Division Chief, FNA - Financial Analyst, LWR - Lawyer,
           RSA - Research Assistant, RTS - Regional Transport Specialist.
       (2] 1 - No or minor problems, 2 - Moderate problems.
       (31 0 - Other.
       (4] Rating system changed. Problems no longer specified on Form 590 -
           Supervision Summary.


                                          STAFF INPUTS
                                         (staff  weeks)

Stage      FY     83        84      85       86        87        88       89           90      TOTAL


Preparation     27.0                                                                            27.0
Appraisal        4.7      24.4                                                                  29.1
Negotiations               8.4                                                                   8.4
Supervision                6.2    20.1     15.2       9.1       8.1      5.2          1.8       65.7
Other            7.3      18.3     3.2      0.3       1.5                2.3          3.4       36.3

  TOTAL         39.0      57.3    23.3     15.5       10.6      8.1      7.5          5.2      166.5
                                       -iv-




                                DISBURSEMENTDATA

                Cumulative   Estimatedand Actual Disbursements
                                  (US$ Million)

FY Ending           Appraisal        Actual            Actual as %    Actual as %
                    Estimate                           of Estimate    of Total


June 30, 1984          20.0            0.0                0.00%           0.00%

June 30, 1985         100.0           35.4               35.40%         16.46%

June 30, 1986         150.0           83.9               55.90%         39.02%

June 30, 1987         200.0          158.2               79.10%         73.58%

June 30, 1988         230.0          210.5               91.52%         97.91%

June 30, 1989                        215.0               93.48%         100.00%

June 30, 1990                        215.0               93.48%         100.00%


Note: 1. US$10,000,000was cancelled on December 2, 1986.
      2. US$ 2,877,000was cancelled on March 21, 1989.
      3. US$   707,000 was cancelled on August 4, 1989.
      4. The last disbursementwas made on August 15, 1989 and the undisbursed
         loan balance of USS1,412,966.78 was cancelled effectiveMay 30, 1990.
      5. The net loan amount disbursedwas thereforeUS$215,003,033.22.


                                     by
                        Disbursements Loan Category
                                (US$ Million)

Category                    Loan                             Actual
                         Allocation             %            Amount           %
                        At Appraisal                        Disbursed


Civil Works
A. Part A                 190.0               82.6%          202.92         94.4%
B. Supervision              3.3                1.4%            2.45          1.1%
Equipment for Road Maint-
  enance & Road Safety      7.8                3.4%            8.61          4.0%
ConsultantServices, Tech-
  nical Asstce & Training   4.3                1.9%            0.56            0.3%
Fee                         0.6                0.3%            0.57           0.3%
Unallocated                24.0               10.4%            0.00           0.0%
Special Accounts            0.0                0.0%           -0.11 [1]      -0.1%
    Total                    230.0            100.0%         215.00         100.0%


Note: 1. This amount of US$108,125.53representsexchange rate fluctuations
         for transactionsmade under the two Special Accounts.
                                REPUBLIC OF OE
                      HIGHWAY SECTOR PROJECT - LOAN 2392-FO-
                            PROJECT COMPLETION REPORT
                                Evaluation   Summarv


Obiectives

         The objective of the Highway Sector Project was to assist the Republic
of Korea to increase economic efficiency in the highway sector by financing a
part of the total expenditure to be incurred in a three-year time slice of the
Government's Highway Investment Program (Overview Tables 6A and 6B), which
formed part of the Fifth Five-Year Development Plan (1982-86) (FFYP), and by
supporting improvements in investment planning, transport regulation and
pricing, and energy conservation (Overview para 2.1). The specific objectives
of the FFYP relating to the highway sector were to:

         (a) expand and widen expressways near some major urban areas;

         (b) continue improving and paving national and major provincial roads
             and strengthen maintenance;

         (c)   increase and modernize the vehicle fleet and develop safety
               measures;

         (d)   improve the efficiency of road transport operators by expanding
               terminal facilities and encouraging larger scale transport firms;
               and

         (e)   expand and improve tne transportation network in remote areas to
               reach all villages with 100 or more households.


Implementation Experience

         The Highway Sector Project was appraised in May 1983 and the loan
became effective in August 1984. The Bank Loan (2392-KO) for the project, as
signed, was US$230.0 million; a total of US$14.997 million was cancelled; the
final net loan amounted to US$215.003 million.

         All the civil works contracts progressed well and were completed on
schedule (Overview para 4.1), although there were initial problems with quality
control as the contractors, all Korean, were not used to working strictly to a
specification, and the local consultants were not used to enforcing it.
Supervision of construction was progressively strengthened during the project
implementation as weak points emerged and the final quality of the work was good
(Overview para 5.4g).

   Definitions:

   Project: In this PCR, "project" refers to the civil works, equipment and
   technical assistance which were financed from the proceeds of the Highway Sector
   Loan, Loan 2392-KO.

   Program: Similarly, "program" refers to the highway investment program of the
   Republic of Korea during the years 1984-86, -s appraised, and during 1984-88,
   being the actual period during which the project was supporting the investment
   program.
                               -   vi   -




        Becauseof the prevailing              contracting
                                  international            situation, low bids
were receivedfor the civil works contractswhich enabLeda further84 km of
nationaland provincialroads and 133.9km of provincialand county roads to be
improved(Overview para 4.1c). In order to give time for these works to be
cotplel-ed loan closingdate was extendedby one year.
         the

                                               of
        There was some delay in the procurement the road maintenance
equipment                                            but all items were
         because of problemswith the tender documents,
eventuallydelivered(Overview                               of
                              para 4.2). The implementation the road
maintenancemanagementsystemwent well and the equipment was procuredin a
timelymanner.

         Improvementswere carriedout at 65 locations          as
                                                    identified accident
black spots, resulting a reduction the accidentrate of 40% at these
                      in            in
locations(Overview para 4.3).

                                              a                   of
         In the field of energy conservation, greaterappreciation the
problemsand possiblesolutions   was gained throughoverseastraining(Overview
Para 4.4).

         All technicalassistancecomponentswent well (Overviewpara 4.5).
Positiveresultshave been achievedthroughchangesin the laws governing road
user chargesand in the settingup of a maintenancemanagementsystem (Overview
paras 4.5c and d).


Results

         Overall,the projectwas a success (Overviewparas 5.1, 5.2 and 5.3).
From the physicalaspect,it more than achievedits objectives  and its results
had a noticeableimpact in the intendedareas. A significant  proportion(5%) of
the primary,secondary and tertiaryroad networkswas improved  under the
project,with a consequent reductionin transport costs and improvement in
maintenance capability. Other aspectsof the transport sectorwill show
improvements                                                   of
             resultingfrom the projectwhen the recommendations the various
studiesare fully implemented.

         The overalleconomicrates of return,estimatedin advanceof
construction be 42% for the nationaland provincial
             to                                       roads and 23% for the
county roads, ended up at 38% and 25%, respectively.Lower than expectedbid
prices and more rapid trafficgrowth were, in some instances, offset by the
increased                                    by
          cost of design changesnecessitated technical    difficulties
encountered during construction.It is expectedthat the final rates of return
will be better,because trafficis increasing  faster than forecast.


Sustainabilitv

         With trafficincreasing  faster than forecastand with the introduction
of pavementmanagementon nationaland provincialroads and of a proper
maintenance system for county roads, it is expectedthat the road improvement
components the projectwill maintainor even exceed the forecastlevel of net
           of
benefitsthroughout  their economiclife. The eventualsuccessof the
construction componentdependson the continued   growth of the Korean economy
providing spur to the growthof trafficand on the timely and adequate
          a
          of
provision maintenance    funds to keep the roads in good condition(Overview
para 6).
                             -   vii   -


        The success of the studies depends on the continued implemeiitation
                                                                         of
the recommendations
                  made.

Findings and LAsaons

        The main objectivesof the Highway Sector Project were achieved in an
efficient and timely fashion (Overviewparas 5.1, 5.2, .3 and 5.4).

        The Bank learned some valuable lessons (Overviewpara 7.2), i.e.

        a.   when decidingupon the growth rate for traffic in a country with a
             rapidly expandingeconomy like Korea, it is easy to be too modest
             and to underestimatethe rate; and

        b.   in order to obtain the best return on a successfulproject,
             flexibilityin the design of a project, as well as a readiness to
             be flexibleover enlarging the content of a project, are important
             ingredients.

        The Borrower also learneduseful lessons (Overviewpara 8.3), i.e.

        a.   the use of experiencedsupervisorsto implementhigh standards of
             quality control,particularlyof compactionof the base and sub-
             base, is an importantelement in ensuring the dural'ility the
                                                                    of
             road during its 'ife; and

        b.   the improvementof inter-agency coordinationis an important aim
             that should be continuallysought after.
                                    -viii-

                              REPUBLIC O     REA

                      HIGHWAY SECTOR PROJECT-LOAN 2392-KO

                           PROJECT COMPLETIONREPORT

                                   OVE£RVIESW




1.      Backgtround

1.1      For the two decades preceding the appraisal of this project in 1983,
the transport system in the Republic of Korea (ROK)was strainedby the demands
of rapid growth and requiredmassivepublic sector investments infrastructure.
                                                             in
The Government allocatedup to 23% of its total capital expenditureto expand
and modernize transportinfrastructure  from 1967 to 1977, taperingdown to about
15% in the Fourth (1977-81)and Fifth Plans (1982-86). The Sixth Plan (1987-
91) allocation for transport sector investments is at about the same level.
Investmentshave tended to be concentrated   on the Seoul-Busan axis where most
industrial development is taking place and in other corridors serving the
northeasternand southwesternparts of Korea.

1.2      Substantial changes in the modal distribution traffic for the period
                                                      of
from 1966 to 1985 can be illustratedby traffic statistics. The previously
dominant role of the railways (82% of ton-km in 1966) was replaced by a more
balanced distribution of traffic among rail, coastal shipping and road for
freight and among road and rail for passenger transport. During this period,
for freight traffic, the road and coastal shipping shares of total ton-km
increasedfrom 8% to 40% and from 10% to 29%, respectively,  while movements by
rail, although showing growth in absolute terms, fell to 31% of total ton-km.
These changes reflectboth the economicadvantagesof the various modes and the
different growth rates of the industriesserved, as rail and coastal shipping
became concentrated on long distance traffic and bulk cargo. For passenger
traffic,rapidlyexpanding  personalincomesgenerated  large increasesin personal
travel, mainly by public transport such as express trains and buses, but also
by private car. About half of all passenger trafficwas in urban areas. High
taxation of private cars and gasoline limited car ownership to a level
significantly below that of other countrieswith comparableincome levels, but
did not deter rapid growth in road transport. Between 1966 and 1985, the rail
snare of total passenger-kmfell from 43% to 25% while the road share increased
from 56% to 73%.

1.3      ROK's basic objective in the past had been to increaseand modernize
the capacity of the transport system in line with the projected traffic growth
and to avoid major bottlenecks. This objectivehad been largely achieved. The
systemwas reasonablybalancedand trafficwas in generalallocatedeconomically
among the various modes. Another objectiveof the investmentsin transporthas
been to pursue broader concerns in ROK's spatial and economic planning.
Considerable efforts have been made to develop new industrial complexes in
coastal areas, to take advantageof Korea's natural potential in harbors and to
                                    -ix-


exploit low-costcoastal shippingwhile avoiding excessive congestionon road
and rail. Projectsare now better designed, constructionquality has improved
with the rapid expansion of the constructionindustry,and maintenancesystems
have been establishedfor the road network and have been strengthenedfor the
railways.

1.4      In its efforts to ensure that appropriatedevelopmentprioritieswere
reflected in the allocationof scarce transport resources, the Government in
the past tightly regulated the sector, with a restrictivelicensing system for
operatorsin road transport and shipping,and regulatedpricingfor all transport
activities. Korea's vehicle fleet was kept small due to the policy of high
taxationof cars and high prices for gasoline.

1.5      The large investments transportation
                              in               infrastructure were complemented
by a considerableeffort to improve    the efficiency of the transport system,
through the establishment and strengthening institutions plan, construct,
                                            of              to
maintain and operate   the facilities and services. In the public sector,
institutionssuch as the Korean National Railroad (KNR), the Bureau of Public
Roads (BPR) in the Ministryof Construction (MOC), the Korea Highway Corporation
(KHC), and the Korea Maritime and Port Administration(KMPA) were established
or strengthened in many instances with increasing financial and managerial
responsibility semi-autonomous
               as                 public corporations. In the private sector,
a highly efficient contractor system evolved for civil works. The system
reflectedboth the policy of competitive  bidding in the award of contracts,and
the large volume of constructionthat was carried out in Korea during more than
20 years. By 1985 there were well over 500 firms capable of handling a broad
range of public works. Furthermore,   with Governmentencouragement,the major
construction firms successfully expandedtheirconstruction  activitiesoverseas.

1.6      The Bank has played an active role in advisingand assistingthe Korean
authorities in pursuing their transport objectives (see Table 1). Despite
considerable efforts,spatialplanningof the transportation   systemwas, in 1982,
stillhinderedby generallyinadequateinteragency     coordination, comparatively
                                                                a
limitedexpertisein planningand economicappraisal    techniques, and the capacity
to undertake appropriate longer-termpre-investmentstudies. Projects which
startedduring the years immediately  before this project improvedthis situation
but there was still some way to go. The Bank provided,throughvarious projects,
active support and finance for technicalassistancefor a range of feasibility
and planning studies relating to national transport development, urban
transportation  needs and inter-modalalternativesalong major traffic axes in
addition to more conventionalengineeringdesign work for proposed projects.

1.7      Pricing policy and the regulatory framework have been a feature of
Bank-Government dialogue for many years. In the 1970s, emphasis was given to
supporting Government'sefforts in establishingagencies such as KNR and KMPA
on sound financialbases, with investmentplanninglinked to appropriate tariffs
and charges in regard to rail transportand ports. The Bank also assisted the
governmentin the review of transportand trafficregulation,notably in regard
to licensingof common carriers,road vehicle taxation,axle loading and similar
issues relatingto road transport. The recentlycompletedProvincialand County
Roads Project (Loan2228-KO),which starcedshortlybefore this project,deepened
and  broadened the Bank's involvement in the road subsector by extending
assistance,for the first time, to the Ministry of Home Affairs (MOHA),which
deals with the maintenance of provincial roads and the maintenance and
improvementof county roads. This new involvementalso provided the Bank with
an opportunityto improve coordinationof road planning between MOC and MOHA,
and strengthenedthe basis for this Fighway Sector Project (Loan 2392-KO).



2.      ObJectLvs and Project Description

2.1     Objectivesof the Highway InvestmentProgram

        a.    The Government's Highway Investment Program was designed to
              achieve the goals relatingto the highway sector outlined in the
              Fifth Five-YearDevelopmentPlan (1982-86) (FFYP). These goals
              aimed to:

              i.    selectivelyincreasecapacityby modernizingequipment and
                    optimizing investments;

              ii.   enhance efficiency by improving intermodal traffic
                    allocationand conservingenergy; and

              iii. strengthenmaintenanceactivities.

        b.    The specificobjectivesof the program were to:

              i.    expand and widen expresswaysnear some major urban areas;

              ii.   continueimprovingand paving nationaland major provincial
                    roads and strengthenmaintenance;

              iii. increaseand modernizethe vehicle fleet and develop safety
                   measures;

              iv.   improve the efficiency of road transport operators by
                    expandingterminalfacilitiesand encouraginglarger scale
                    transport firms; and

              v.    expand and improve the transportation  network in remote
                    areas to reach all villages with 100 or more households.


2.2      Project Objectives

         a.   Based on the overall goals of the FFYP as they related to the
              highway sector, the objectivesof the project were:

              i.    to deal directlywith policy and institutionalissues; and
                                     -xi-

               ii.   more specifically,to:

                     (a)   assist ROK to increase economic efficiency in the
                           sector through improvements investmentplanning,
                                                      in
                           transport regulation and pricing, and energy
                           conservation;and

                     (b)   improve the road network to meet the increasing
                           traffic demand, improve maintenance of paved roads
                           and reduce the high rate of road traffic accidents.

2.3      Proiect DescriRtion

         a.    To achieve the above objectives,the followingAction Plan (see
               Table 2) was carried out:

               i.    highway investmentRlanning - to establish a system under
                     which all highway construction and maintenance investments
                     are nlanned and funded on an integratedand sound economic
                     basis;

               ii.   energy conservatio - to expand and improve the
                     effectivenessof a Governmentprogram to increase energy
                     efficiency in the transportsector;

               iii. transgortregulationand pricing -

                     (a)   to study the impact of the present regulatorysystem
                           on the cost of transportserviceswith a view to the
                           identification removalof unnecessary
                                          and                      regulations;

                     (b)   to study and identifythe most appropriatemethod of
                           apportioning highway costs among users; and

                     (c)   to study the use of freightterminals to improveroad
                           transportefficiency.

         b.    In addition,the loan funds were to finance part of a three-year
               time-slice,1984-86,of the highway investmentprogram,which was
               designedto meet the increasingtrafficdemand by improvingaccess
               to rural areas, upgrading and paving roads, enhancing highway
               maintenanceand reducingtraffic accident rates.


3.       Project Design and Oreanization

3.1      The project was designed to address as many of the perceived needs of
the highway sector as could be funded from the resources available. The total
capital expenditures(or program cost) for the whole of the highway sector for
the period 1984-86 on ongoing and new commitments,as estimated at appraisal
(SAR page ii, para 5.05 and Table 5.9(a)),was, at constant1983 prices, US$1,605
million or US$1,440million excludingtaxes and duties,with a foreign exchange
                                    -xii.

element of US$805 million. The equivalent cost, at current prices, of these
expenditures was estimatedat US$1,789 (Table 6A and SAR Table 4.9(b)). The Bank
loan of US$230 million was therefore apportioned, to support the following
components, totallingabout US$462 million (the estimated project cost) from this
three-yeartime-sliceof the highway investmentprogram:

         a.    Paving of national and provincialroads and the procurement of
               maintenanceequipmentby MOC;

         b.    Paving of provincialand county roads by MOHA;

         c.    Road Safety Program to be carried out jointly by MOHA, MOC and
               the Ministry of Transport (MOT);

         d.   Workshops, seminars, training, studies and experts for enegy
              conservation in transport to be carried out jointly by the
              Ministry of Energy and Resources (MOER),MOT and the Ministryof
              Commerce and Industry (MCI); and

         e.   Miscellaneousstudies and technicalassistanceincluding:

               i.    a study on Trucking IndustryRegulations;

               ii.   a study on Freight Terminals and Related Services;

               iii. a study on Road User Charges;

               iv.   preparation road projects- feasibility
                               of                          and engineering;

               v.    technicalassistanceto BPR for maintenancemanagement;

               vi.   supervisionof construction;and

               vii. detailed engineering for investments in the Seoul-Busan
                    corridor and the Kyonggi regional transport stue-J.

3.2      The project was based on a clear conceptual understanding of the
             by
requirements all parties and was well designedby the Borrower and the Bank.
While not greatly innovative,the scope and scale of the projectwere appropriate
and it was well timed in relation to the needs of the highway sector and the
expandingeconomyof Korea. A large number of institutions    were involvedin the
project,but their roles and responsibilities  were clearly set out in order to
forestallproblemsthat might have arisen on account of the traditionallack of
communication between Korean Governmentagencies. The Economic PlanningBureau
(EPB) took on the responsibility overseeingthe carryingout, by the relevant
                                of
agencies,of the Action Plan related to sector issues.

3.3      A considerable amount of effort went into the preparation of this
project and this is reflected in the successfuloutcome.
                                -xiii-

4.    Prgolct Implementation

4.1   Road Conltl-tion and Improvement.

      a.   The two parts of this componenthandled by HOC and MOHA went very
           well.    The improvement work carried out by NOC under the
           government's National and Provincial Roads Project had been
           planned for some time and MOC alreadyhad a wealth of experience
           to draw on to successfully execute such work;

      b.   The improvement work carried out by MOHA under the Highway Sector
           Project (Loan 2392-KO)was an extension of similar work carried
           out under the Provincialand County Roads Project (Loan 2228-KO),
           which startedshortlybefore and ran almost concurrently  with this
           project; all the contracts ran smoothly;

      c.   As in the case of the Provincialand County Roads Project (Loan
           2228-KO), low bid prices enabled both HOC and HOHA to carry out
           more work than had been planned at appraisal, 445.7 km against
           361.7 km and 1326.6 km against 1192.7 km, respectively;these
           increasescould not have been foreseenas they were caused by an
           unexpected downturn in internationalconstructionactivity, in
           which Korean contractorswere heavily involved.

4.2   Road Maintenance

      a.   MOC purchased 372 items of highway maintenance equipment at a
           cost of US$ 10.91 million; the procurement process was delayed
           because the tender documents produced by the Office of Supply,
           Republic of Korea (OSROK) were inconsistent with the Bank's
           procurement guidelinesand much time was consumed in correcting
           them;

      b.   MOC received some technicalassistance in the formulation of a
           maintenance management plan; this component was successfully
           completed and implemented together with the procurement of
           essential items of testing equipment.

4.3   Traffic Safety

      a.   As a result of the recommendatl,- made by the Traffic Safety
           Study carried out under the Provincialand County Roads Project
           (Loan 2228-KO), HOHA carried out improvementsat 65 locations
           which had been identifiedas accidentblack spots;

      b.   After monitoring the accident records at 52 of these locations
           it has emerged that the effect of the works bI- been to reduce
           the number of accidentsat these places by 40% .ndthe fatalities
           and injuriesby 39%; the 6-monthbenefit of the accide 5 reduction
           is estimated at about US$20,000 per location, representingan
           average IRR of 68%.
                                -xiv-

      c.   Despite local successes,the national accident figures paint a
           bleak picture, having one of the highest rates in the world,
           particularlyin Kyonggi Province and amongst old people.

4.4   Energy Conservation

      a.   Using funds provided under the project, six people were sent on
           overseas training courses in order to further improve MOER's
           knowledge of energy conservation matters;

      b.   The formulation of energy policies has benefitted from the
           training received over a wide range of energy applications
           together with an improvement of skills in the fields of
           transportation energy analysis and energy conservation and
           forecastingtechniques.

4.5   Studio

      a.   The Trucking Industry Study was completed in May 1985 by the
           Korean Advanced Instituteof Science and Technology (KAIST)with
           the assistance of UNDP under the sponsorship of MOT.        It
           recommended significantchanges in the current laws and MOT is
           now pursuing an active policy to deregulate the road transport
           industry.

      b.   The Freight Terminals and Related Services Study was completed
           in November 1986 by the Korea TransportInstitute (KTI) together
           with foreign and domestic consultantsunder the sponsorshipof
           MOT. Based on the recommendations the study, MOT has carried
                                              of
           out detailed feasibility and engineering studies for the
           establishment the proposedfreight terminals,even though the
                         of
           study did not make a sound economiccase for them. An Intermodal
           Freight TransportFacilitation  Seminarwas held in October 1986.

      C.   The Study of Road User Charges was completed in December 1985 by
           the Korea ResearchInstitutefor Human Settlements(KRIHS)under
           the sponsorshipof MOC. It recommended several changes in the
           taxation structure. HOC has met with considerablesuccess in
           obtaining Government consensus for implementing the changes
           recommended. The SpecificRoad Fund Law, which covered some tax
           reform includingthe adjustmentof gasolineand car registration
           taxes, was passed in December 1988;

      d.   The HighwayMaintenanceManagementStudywas completedin December
           1987 by foreign and local consultantsunder the sponsorshipof
           HOC. As a result of the recommendations made, MOC has purchased
           the necessary equipment for pavement evaluation to enable the
           creation of a road inventory,and is training its staff in the
           maintenanceof the data bank and in the operationof the pavement
           management system.
                                    -xv.



4.6      The main variancesbetween planned and actual implementation were: (a)
delays of up to a year in the construction    contracts because of technical
difficultiesand a shortageof counterpartfunds; (b) a delay of about one year
in the procurementof equipmentbecause of problemswith the documents;and (c)
delays of up to a year in the completionof some of the studies and the actions
arising from them because of a shortageof counterpartfunds.

4.7      Several significantdecisions,wvich assistedproject implementation,
were taken. These included:

         a.   use of foreignconsultant firms as the lead firms for construction
              supervisionon the road works to provide opportunityfor Korean
              firms to gain valuable experience,and in turn to enable them to
              designand supervise the additional road improvement workswithout
              the assistanceof foreign consultantsduring the latter part of
              the project;

        b.     use of surplus loan funds for the improvement of additional
               lengthsof national,provincialand county roads,hence increasing
               the physical achievementof the project 'oyabout 20%;

         c.                           Competitive
               the use of International          Bidding for the initial list
               of road contracts,which contribatedtowards low bid prices; and

         d.    insistence theproductionof high qualitymaintenance
                         on                                        equipment
               biddingdocuments,which, though delayingthe procurementprocess
               somewhat in the early stages, paved the way towards a better
               understanding OSROK of the Bank'sviews on fair and acceptable
                            by
               bidding documents.

4.8     On the other hand, the relativelyearly request, in 1986, by MOC to
cancel US$10 million of the loan, due to lack of a matching local budget
allocation,reduced somewhatthe potentialphysicalachievements the project.
                                                            of


5.       Proiect Results

5.1     Overall, the project has been a success. While some of the policy
objectiveshave not yet been achievedbecause of a lack of consensus to effect
the necessary changes, the project made a substantial contribution towards
achieving the Governments'sgoals for the improvementof the highway sector.
Apart from the 1,772 km of national, provincial and county roads that were
improved (5% of total non-urbanroads) and the injectionof valuable experience
into the consulting and contracting industries, the project brought about
fundamentalchanges in the operation of the trucking industry,the improvement
of traffic safety and the introduction a maintenancemanagementsystem.
                                      of

5.2     From the physical aspect, the project has more than achieved its
objectivesand its results have had a noticeable impact in the intendedareas.
A significant proportion (5%) of the primary, secondary and tertiary road
networks was improved, with a consequent reduction in transport costs and
improvementin maintenancecapability. Other aspects of the transport sector
                                    -xvi-


will improve when the recommendations of the various studies are fully
implemented. The objectivesof the project did not change during implementation
in that they fully supported the established goals of the highway investment
program of the Government.

5.3      The economicrates of return for the civil works components,estimated
in advance of constructionto be 42% for t;.d nationaland provincialroads, 23%
                                                                       at
for the county roads and 33% overall,were 38%, 25% and 32% respectively the
time of completionof the projectY. Lower than expectedbid prices and a more
rapid rate of traffic growth were, in some instances,offset by the increased
                                   by
cost of design changes necessitated technicaldifficulties   encounteredduring
construction. It is expected that the rates of return will improve with time,
because traffic is increasingfaster than forecast.

5.4      The final cost of the project componentscarried out in support of the
Highway InvestmentProgramwas US$505 million (Table 3). This is a littlehigher
than the very approximateestimateof project cost that can be obtainedfrom the
SAR of US$462 million. This increasecan be attributedin part to the extension
of the projectby a year, althoughthe loan was underdisbursed US$15 million.
                                                             by

5.5     The project impact includes:

         a.   the introductionof integratedhighway investmentplanning as a
              result of recommendationsmade during the Provincialand County
              Roads Project (Loan 2228-KO);

        b.     the developmentof a traffic safety program;

         c.    changes in the trucking industry regulations to promote more
               competitionand reduce transportcosts;

         d.                            of
               the planned introduction additionalfreight terminals;

         e.    changes to road user charge structure;

         f.    the introduction of a highway maintenance management system
               together with the taking of road inventoriesand establishment
               of a data bank;

         g.    further strengtheningof the constructionindustry through the
               experience gained by consultants in evaluation, design and
               supervision,and by contractorsin carrying out work to a strict
               specification;

        h.     improvementof the physical environmentby paving county roads
               to reduce the polluting and damaging effects of dust and mud,



      ' The IRRs for the HOC and MOHA components and for the overall project
were derived from Table 4 of the MOC section of this PCR and from Table 1 of
the MOHA section.
                                    -xvii-

                and the economic costs and discomfort of travelling over rough
                roads;

          i.    development of the technological skills of the construction
                industry by the introduction of Double Bituminous Surface
                Treatment(DBST)as a low-costpaving method, by the use of modern
                materials testing equipment and by the use of appropriate
                constructionplant;

          j.    improvement of access for farmers and rural communities to
                markets;

          k.    development of the capabilitywithin MOHA at both national and
                provincial levels to manage projects of this type and to carry
                out effectivemaintenanceof their road inventories.


6.        Prolect Sustainability

6.1      With traffic increasingfaster than forecast and the introductionof
pavementmanagementon nationaland provincialroads and of a proper maintenance
system for county roads, it is expectedthat the road improvementcomponentsof
the project will maintain or even exceed the forecast level of net benefits
throughouttheir economiclife. The final successof the construction  component
depends on the continued growth of the Korean economy providing a spur to the
growth of traffic and on the timely and adequateprovision of maintenancefunds
to keep the roads in good condition.

6.2      The success of the studies depends on the continued implementationof
the recommendationsmade and an awareness by Government that changes in and
deregulationof the transport industry are essential ingredientsto achieving
reductionsin economiccosts, though it is realisedthat these changes may take
time to materializebecause of the temporary distortionsthat they produce in
the economy.

6.3      There is a decided risk that maintenance funds would be reduced if
there is a downturn in the economy. This issue has been addressed in the most
recent highwayprojectV, which includesa major road maintenancecomponentbased
on the Highway MaintenanceManagementStudy which was completedin December1987
under this Highway Sector Project (Loan 2392-KO).


7.        Bank Performance

7.1      The overall success of the project can be attributed in part to the
good performance by Bank staff during the whole project cycle. Supervision
missions were sent to Korea on a regular basis and staff changes were kept to
a minimum, thus enabling good relationshipsto be built up over the period of
the project.


     Y Korea - Road ImprovementProject (Loan 3061-KO),approvedon May 16, 1989.
                                   -xviii-


7.2     The main lessons to be learnt by the Bank are:

        a.    when decidingupon the growth rate for traffic in a country with
              a rapidly expanding economy like Korea, it is easy to be too
              modest and to underestimatethe rate (para 5.3); and

        b.    in order to obtain the best return on a successful project,
              flexibility in the design of a project, as well as a readiness
              to be flexible over enlarging the content of a project, are
              important ingredients(para 5.5b).


8.      Borrower Performancj

8.1      The Borrower and its implementingagencies performed well during the
project. They eased the task of project preparationby readily providing the
information requested and their performances during implementation improved
steadily. At first the agencieshad some difficultyin adequately supervising
the constructioncontractsand in maintainingthe necessarystandardsof quality
control,but as they gained experience,the contractmanagement improved.

8.2      Governmentstaff resourceswere generallyover-stretched  and therefore
much use was made of consultants,both foreign and Korean. The agenciesworked
closely with their consultantsand relied heavily on them, generally following
their advice, but not always.

8.3     The main lessons to be learnt by the Borrower are:

        a.    the use of experienced supervisorsto implement high standards
              of quality control, particularlyof compaction of the base and
              sub-base, is an importantelement in ensuring the durabilityof
              the road during its life (paras 5.5a and 6.4g); and

        b.    the improvementof inter-agencycoordinationis an importantaim
              that should be continuallysought after (paras 4.1c and d, 4.2
              and 6.4a).


9.      Proiect Relationship

9.1      The excellentrelationshipthat has existed between the staffs of the
Borrower and the Bank, during both preparationand implementation  phases, has
been one of the factorswhich has contributedtowardsthe success of the project.
It createdgood teamwork,in which each party displayedthe flexibilityto accede
to the other, when necessary,for the good of the end product.
                                    -xix-


10.     ConsiltingServicesand Contractors

10.1     On the advice of the Bank, the Borrower employed foreign consultants
in the lead roles initially, thus enabling the Korean consultants,who were
working with the foreign consultants, to gain experience in designing and
supervisingroad works, and eventuallyto successfully carry out these tasis on
their own. The consultantsall performed satisfactorily.

10.2     For the studies, Korean organizationsplayed a major role, with the
support of local and foreign consulants. Despite some misgivings at various
stages of the project, the studies were ca:ried out in an efficient and
professionalmanner.

10.3     Contractors and suppliersalso played a major part in the implementation
of the project. All the civil works contractors were Korean, even though
procurementwas by InternationalCompetitiveBidding (ICB). Initially,while
both contractors and local consultants were becoming used to working to a
specificationunder the overall supervisionof foreign consultants,standards
of workmanship varied greatly, but as the work progressed, quality control
improvedand, by the later stages of the project,standardswere good. Equipment
suppliers, who were both Korean and foreign,generallyperformed satisfactorily
and thus equipmentwas procured and delivered in good time.

10.4     This project, like the Provincialand County Roads Project (Loan 2228-
KO), was useful to the Korean consultantsand contractors,who learnt much about
working to an acceptable internationalstandard of quality control. The
introductionof new techniques,notably DBST, were of benefit not only to the
firms that took part, but also to the whole constructionindustry in Korea.


11.      Project Documentationand Data

11.1     The covenants contained in the loan agreementwere reasonableand the
Borrower compliedwith them.

11.2    The Staff AppraisalReport provideda useful referenceframeworkduring
the implementation the project.
                  of

11.3    The well kept records of the implementing agenciesand the information
providedby the Bank helped MOC and MOHA to preparecompletionreports for their
own components of the project. These have been included in this Project
CompletionReport.
                                                               -xX-

                               TABLE 1.           Related    Bank Loans andZor Cxedits


                                                                                year of
Loan/Credit                             Purpose                                 Approval     status     Canants

Highway Project    To construct  372 km of national  highways between             1971     Completed   PCR issueds
(LN 769)           Chonju nd Puaana feasibiLitystudies and                                             PPAR No. 3045
                                          of
                   detailed angineoring 1,400 km and 1,100 km,                                         of Juno 1980.
                   respeotivelya highway maintenance study and
                                  a
                   establishment  of a pilot -mintenaneo  o rganiation
                   and purchase of highvay maintenance equipment.
Highway II         To assist     Government's 1972-76 road construction         1974       Coeploted PCR issued;
(LN 956)           and paving program and to expand road maintenAnce                                 PPAR No. 3045
                   organtiation.       To construot  national   highvays from                        of June 1950.
                   Sae.al to Gangreung (97 km) and Gangreuagto Mukho
                   (33 kh), pave and improve 634 km of national
                   highvayst procure maintenaeo equlpment and carry
                   out feasibility      studies nd detalled     engineering  of
                   1 000 km of national      and provincial   roads.
Highway III        To cter    for srowing traffic   on the highway system         1976     Completed   PCR issued.
(LN 1203)          by extnding     the network of all weather paved                                    PPAR No. 5024
                   highvays (800 km) between the min centers of                                        of April 1984.
                   population    and carry out feasibLitty  studies and
                   detailed   engineering   (1.200 kh) to prepare future
                   projects.
Highvay rV         To assist  in improving the highvay system by                  1979     Completod   PCR issueds
(LN 1640)          extending the network of paVed highvays by some                                     PPCR No. 5450
                   1.230 km and by preparing  a program for improving                                  of Feb. 1985.
                   the maintenance and developeant   of the provincial
                   and county (gun) road system.

Provincial and     To assist  the Borrovwr to improve some 1.000 kh         1982           Closed      ICR issued
County Roads       of county (gun) or tertiary     network roads throughout                12131188
(LN 2228)          the country and to establish     and equip appropriate
                   maintenance organizations    for the provincial   and
                   county road networks.
Kyonggi Regional  To meet road transport    demand in two important               1988     Ongoing     Became effective
Transp. (LN 2905) corridors by constructing    two high-capacity  toll                                 05104168.
                  expresswayand support the Government's general
                  objectLve of increasingthe efficiency        of
                  transport  in the Kyonggi Region.
Road Improvement   To lncreasetransport        capacity during the Sixth          1989     OngoLng     Approved     05I16/89
(LN 3061)          Plan period (1987-91) by supporting        threo
                   prLneipal   road-related     Governamet objoctives2
                   (a) enhancing transport        efficieany by upgrading
                   the surface and alignment of existing        roads and
                   by improving road maintenance and operationas          (b)
                   expandingtraffic       capacity by widening roads      and
                   (a) increasing    traffic    safety.
                                                                     -xxi-

                                           TABLE 2. Projlet                  lementatitn

As this is a Highway Sector Project, there was no laid-down implementation  table in
the SAR, but,insteadan Action Plan, as shownbelow was includedand this was monitored
during the project.

    Project     Componant                                  Responsible                                 TILLn
                                                             Ageny                   Eat lted                      Actual

A. Coordinating Comittee                                       ar                       A*A                       1111*102
   EstablishInteragency(MOHA, ODC,
   MOT, NOES. WSCX BS) CoordLnatins
   Committee,eha red by EPB
B. Integrated    Road lavestment    Planning   (KU?)
a. Highway PlannLng
   1. Adopt IRIP systm,        plan     and                 PD/NOC/"A               By Ond-1904                     10/84
       project   evaluation    criteria
   2. Establish    hnnual Review of Road                        Pb                  By end 1904                     12/86
       Investment Proposal
   3. Prepare Cost-effectlve          Hsmt.                    HDC                  During      1984                11167
       System for maintenance of
       paved road system
   4. Implement Mgmt. Maintenence System                        HOC                 During 196U                     12/86
   S. Use IRIP System to Include                             Ei/HOC                 Sy Beg. 1986                    1986
       Roads Program Ln 6th MPD?
   6. Ensure annual approprlations                         EPD/NOCIOHIA              Vrm 1986                       1986
       for maintenance for each Igency
b. Highway Plannang in relation          to
   other modes
   1. Identify    shortfall    of skilled                      aPn                  by mid-1964                     06/64
       planning staff
   2. Carry out program to upgrade                             EP                   Dy mid-1984                     06/84
       staff capabilities
   3. Strengthen     system to coordinate              m        lI                  by mid-1966                     1986
       investment alternatives         between modes
c. nergy EfficLency In Transport
   1. Start transport       energy                             (DZRMtNCI/NOT)       Dy 03131184                     03/84
       conservation    actions
   L.     Ag*ncies to submit plans                                                   Annually                     Complied
   LL. Periodic Reviews                                                              Quarterly                    Complied
   LiL. Studies and Seminars                                                       Sl-annually                    Complied
   2. Prepare plan to train sufficient                        N U                   Dy 07/31184                   12115/64
       staff in conservation        techniques
   3. Start energy conservation          training             NOD                   ay 03/31/65                     08/85
       program in tranport        sector
d. Regulation  and Pricing in Road
   Transport (Studies)
   1. TruckLng Industry Regulation                          LTD of NDT           07101184-03131185             08/03184-05131118
   2. Freight Terminals and Related                         TCJ of MCT           02101/85-10/31/85             071011/5-11/30/86
      Sorvices
   3. Road User Charges                                      HOC/KPI              05/01/84-12/31184            07/09/84-12/10/85
   4. Exchange views on study findings                      PolHOC/HDT            By 3 mnths after                 Complied
      L set implementation  schedules                                           each study submission
                                                          -xxii          -


                                           TABLE 3. Co0ta and Financing

                                                 A.   Praje       Cost       Bern!,


                                                        Actual
                                  Local                Forelgn                        Total                Total

                                                      Won Billion                                       USS Milllon


Natl & Prov.
  Road Improvemnt                 98.92                 83.01                    181.93                    219.28

CountyRoad
  Improvement                     97.97                 76.56                    174.53                    212.46

Equipment                           0.00                10.78                         10.78                 14.37

Land AcquLsition                   39.55                 0.00                         39.55                 47.66

Consultancy Services
  Supervn & Engg (MOC)              2.09                 1.11                         3.20                   3.78
     0     N '     (MOHA)           1.78                 2.10                         3.88                   4.85
  Studies G TA                      0.59                 0.49                         1.08                   1.25
  SubtotalCons Svcs                 4.46                 3.70                         8.16                   9.88

Trg Fellowships                     0.00                 0.46                         0.46                   0.58

ServLceCharge                       0.00                 0.28                         0.28                   0.32
TOTAL PROJECT COSTS              240.90                174.79                    415.69                    504.55

Note:       11    The SAR does not glve any detailedcost estimatefor the project components,only an indLcation
                  In general terms of the cost of two componentsis given in parc 5.18. It is not therefore
                  possible to draw any comparisonsof appraisaland actual costs for all the project components.



                                  S.                       Invest
                                       FLnsnc ns of Biishwav     met Proar.


                                                 Appraisal                                                  Actual
Source                                 Local      Foreign     Total                           Local       Foreign     Total
                                       ---------USS million)
                                               (           --     -                           --------- USS million)------
                                                                                                      (


IBRD:
  ProvLncialand CountyRoads
    Project (Loan 2228-RO)                 -            125Cl]                125               -           124         124
  Hiahway Sector Project
    (Loan 2392-RO)                                      230                   230               -           215         215

Asian Development Bank:
  Fifth HLghway Project                    -            100                   100               -           100[21      100

Korean Government                          800          350                  1150             2321131      1882[41     4203

TOTAL                                  800           805        1605(51        2321         2321           4642(61
Notes:      [11 Shown as S11Sm in SAR page iL. which is incorrect. Subsequentflgures ln this table have been
                correctedaccordLngly.
            (21 Assumed figure. No details available.
            (31 Assumes 501 foreign element in investments. No details available. RO1's contribution   tovards this
                project vas S290m.
            (43 Assumd in order to allow 50X forelgn element. No details available. ROK's contribution     tovards
                thLs project vas NIL.
            (53 From SAR page i. Based on constant 1983 prices over 3 years 1984-86.
            [63 From Table 6B. Based on current costs over 5 years 1984-88.  No details availableon breakdownof
                foreign and localexpenditure, this nas been assumed as 50X each. The amount attributable
                                               so                                                           to this
                project is $505m.
                                    -xxiii-

                               TABLE 4. Studies



Study               Purpose at Appraisal              Status/Impact


Trucking Industry   MOT in charge.                      Completed 05/85.
                    To assess the impact of current     Progressivederegulation
                    road transportation regulations     of the industryoccurring.
                    on the cost of transport services
                    and energy use, and propose removal
                    of unnecessaryregulationsto open
                    up competitionon a selectivebasis.

Freight Terminal   MOT in charge.                     Completed 11/86.
& Related Services To identifythe potential for       Additional freight
improvingefficiency in transport                      terminalsplanned.
                    through the use of road and
                    intermodalfreight terminals.

Road User Charges   MOC in charge.                    Completed 12/85.
                    To study and identify the most    Road user charges have
                    appropriatemethod of apportioning been adjustcd.
                    the costs of highways among the
                    users and channellingrevenues
                    to cincernedagencies.

Maintenance         HOC in charge.                    Completed 11/87.
Management          To study the maintenancesystem    Compilationi inventory
                                                                  of
                    and propose effectivemethods of   in progress. Staff being
                    managing the maintenancec.fthe    trained and equipment
                    network by compiling a roadl      purchased.
                    inventoryand a data bank.
                                     -xxiv-

                    TABLE 5. Compliancewith Loan Covenants

                                                                       Page 1 of 3


Section            Summary                             Status


3.01(b)   The Borrower to present to the Bank, for   Complied with.
          its approval,each Sub-projecttogether
          with all necessary documents.

3.01(c)   Except as the Bank shall otherwise         Compliedwith.
          agree, each Sub-projectto:
          (i) be evaluated and selected following
          a methodologysatisfactoryto the Bank;
          (ii) be carried out in an approved
          manner; and
          (iii)have an economicrate of return of
          at least 12%.


3.02      The Borrower to employ consultantsand Compliedtwith.
          expertswhose qualifications,experience
          and terms and conditions of employment
          shall be satisfactoryto the Bank, such
          consultantsto be selectedin accordance
          with the 'Guidelines for the Use of
          Consultants" published by the Bank in
          August 1981.

3.03      The Borrower to:                           Compliedwith. The study under
          (a) furnish to the Bank, for its review    Part B(i) (Trucking Industry)
          and   comments, the      findings and      was completed in May 1985, the
          recommendationsof the studies under        study under Part B(ii) (Freight
          Parts B(i), B(ii) and B(iii) of the        Terminals) was completed in
          Project,not later than April 30, 1985,     December 1986 and the study
          November 30, 1985 and January 31, 1985,    under   B(iii)     (Road User
          respectively;                              Charges) was completed in
          (b) exchangeviews with the Bank on the     December 1985.
          findings and recommendationsof these
          studies not later than July 30, 1985,      Useful exchanges of views have
          February 28, 1986, and April 30, 1985,     taken place.
          respectively, and, thereafter,implement
          the agreed recommendations in a
          satisfactorymanner; and
          (c) for those recommendations for which
          no agreement has been reached, advise
          the Bank with respect to the actions to
          be   undertaken for      their future
          implementation.

3.04      The Borrower to take all action as         Compliedwith.
          necessary to enable EPB to implementthe
          Action Plan.
                                     -xXv-

                                                                       Page 2 of 3


Section            Summary                             Status


3.05      The Borrower and the Bank from time to     Compliedwith.
          time to exchange views on the progress
          achieved in carrying out the Action
          Plan; the first such exchange of views
          to take place no later than November 30,
          1984, or such later date as the Borrower
          and the Bank may otherwise agree.

3.07(b)   The Borrower to maintain proper records    Compliedwith.
          and make them available to Bank
          supervisionmissions.

3.07(d)   The Borrower to furnish reports as         Compliedwith.
          agreed.

3.07(e)   The Borrower to prepare a Project          Compliedwith.
          CompletionReport within six months of
          the Closing Date.

3.08      The Borrower to acquire as and when        Generally complied with. Some
          needed all land as shallbe requiredfor     small pieces of land were
          carrying out the Project in a manner       acquiredvery late.
          satisfactoryto the Bank.

3.09      The Borrower to implement a road safety    Implemented by     MOHA   from
          program not later than February 28,        November 1987 to October 1988.
          1985.

3.10      The Borrowerto implementa plan for the     Complied with.
          promotion of Unscheduled Transport
          Services in villages.

3.12                                      study
          The Borrowerto submit feasibility          Compliedwith.
          for the widening of the 91 km section
          Jeonju-GwangjuExpressway.

4.02      The Borrower to maintain accounts for      Compliedwith although in some
          the Project in accordance with sound       instances the audit reports
          accounting practices and to have them      were received later than due
                                     of
          audited to the satisfaction the Bank.      dates.

4.03      The Borrower to                            Compliedwith.
          (a) maintain all of its national,
          provincial and county roads and to
          provide the necessary funds;
          (b) cause all equipment for road
          maintenance and workshops of NOHA and
          MOC to be adequatelymaintained;and
          (c) maintain the buildings and vehicles
          to be procuredunder the Project.
                                 -xxvi-

                                                               Page 3 of 3


Section          Summary                          Status

4.04      The Borrower to furnlsh to the Bank Compliedwith.
          annually reporton the amountsbeing
                   a
          allotted MOC and Moha for maintenance
                   to
          of the roadsundertheirjurisdiction.
4.05                                            with.
          The Borrower to take measures, Complied
          acceptable the Bank, to limitaxle-
                    to
          loads of vehiclesusing its national,
          provincialand countyroads.
6.01(a)   The Borrower employconsultants
                      to                  for          with.
                                                Complied
          the Project,satisfactory the Bank.
                                 to
                                                                                                                                                              -xxvii-



                         Table 6A: Appraisal Estimate of Highway Investment Program: Expenditures for 1982-86
                                                        ........................................................................


..............................                                                                ..................................................................                                                                                           .....
                                                                                                                                                                                                                                                   ......... ........................

                                                                                                    1982                           1983                            1984                       1985                    1986            1982-1986
                                 Component                                                                                                                                                                                     .................
                                                                                                    --------------                                 (WonMillion)                               ------.------                    Won Mln USS'000
. ...................................................                                                                                                                 ............................................

       OF
BUREAU PUBLIC    ROADS(BPR)
 Capital Expenditures
  ExpresswayConstruction                                                                            39,486                         54,989                          96,780                    10,346                   11,774    213,375   273,770
  National Roads
    Paving                                                                                       124,791 132,683                                                   62,865                 119,572                    150,747    590,658   760,607
    Upgrading                                                                                      4,764   8,246                                                   11,361                  15,543                      7,298     47,212    59,866
    Widening to 4 Lanes                                                                           4,500    7,819                                                   16,279                  52,654                     59,951    141,203   177,308
  Provincial RoadsPaving                                                                          3,028    3,891                                                    3,105                  12,198                     11,068     33,290    42,153
  Bridge Construction                                                                              7,179   6,268                                                    8,243                  10,848                      8,567     41,105    52,663
  MaintenanceEquipment                                                                             1,107   2,065                                                    3,000                   3,699                      4,531     14,402    18,201
                   Subtotal                                                                     184,855 215,961 201,633                                                                   224,860                    253,936 1,081,245 1,384,568

 Recurrent Expenditures
  PavedNationaL Roads
    Routine Maintenance                                                                              7,159                         15,352                          22,902                    27,888                  33,676     106,977   149,284
    Periodic Maintenance                                                                            11,091                          9,888                          13,325                    17,554                  22,577      74,435    95,023
  UnpavedNational Roads                                                                              2,049                          3,092                           4,350                     5,096                   5,609      20,196    25,611
  Central Adninistration                                                                               515                          1,752                           2,091                     2,335                   2,591       9,284    11,697

                   Subtotal                                                                         20,814                         30,084                          42,668                    52,873                  64,453     210,892   281,615
 Other Expenditures
  Studies                                                                                              763                          1.385                           3.767                     4,586                   5,547      16,048    20,197
  WeighBridges                                                                                          96                            223                             254                       300                     351       1,224     1,547
           of
  Repayment Loan                                                                                    26,298                         35,011                          40,182                    44,869                  50,580     196,940   250,871
                   Subtotal                                                                         27,157                         36,619                          44,203                    49,755                  56,478     214,212   272,615
                                     TOTAL                                                      232,826 282,664 288,504                                                                   327,488                    374,867 1,506,349 1,938,798
KOREA HIGHWAY          (KHC)
             CORPORATION
 Capital Expenditures
  ExpresswayWidening         2,738                                                                                                 17,173                          57,534                    77,612                  81,466 236,523       296,143
  Upgrading                  5,170                                                                                                  7,938                           8,810                    11,798                  16,853  50,569        64,137
  Ancillary Facilities         493                                                                                                  1,460                           2,674                     3,068                   3,495 11,190         14,075
  Equipment                  1,478                                                                                                  2,332                           2,588                     2,970                   3,384  12,752        16,202

                   Subtotal                                                                            9,879                       28,903                          71,606                    95,448                  105,198    311,034   390,557
 Recurrent Expenditures
  Routine Maintenance                                                                               30,220                         30,305                          33,643                    38,604                  43,983     176,755   226,340
  Periodic Maintenance                                                                              14,291                         13,164                          15,207                    16,049                  15,159      73,870    94,888
  Facilities                                                                                           177                            293                             324                       373                     425       1,592     2,021
  Adninistration                                                                                     4,834                          4,805                           5,520                     6,334                   7,216      28,709    36,750

                   Subtotal                                                                         49,522                         48,567                          54,694                    61,360                  66,783     280,926   359,999

 Other Expenditures
  Reserach and Studies                                                                                 188                              247                           457                       1,059                 1,672      3,623      4,562
  WeighBridges                                                                                         162                              130                           337                         362                   385      1,376      1,749
            of
  Repayment Loan & Tax,etc.                                                                         29,980                            6,105                         4,459                       4,967                 5,496     51,007     69,112
                   Subtotal                                                                         30,330                            6,482                         5,253                       6,388                 7,553     56,006     75,423

                      TOTAL                                 89,731 83,952 131,553                                                                                                         163,196                    179,534   647,966    825,979
.................................................................................................
                                                                                                                                                     -xxviii-



                           Table 6A:                            Appraisal                           Estimate of Highway Investment Program:                                   Expenditures    for 1982-86
                                                                 ........................................................................


.................................................................................................

                                                                                                             1982                           1983      1984           1985     1986          1982- 1986
                                 Component                                                                                                                                              .................
                                                                                                             -- - ---                         -- t(Won Million). .      ----------      Won Mtn    USS000
.................................................................................................

MINISTRY OF HOME AFFAIRS (MONA)
 Capital Expenditures
  Paving ProvincialRoads      107,200 80,000    3,735                                                                                                             39,832       42,414    273,181 360,619
  Paving County Roads           12,800 67,400 95,459                                                                                                             113,488      121,082    413,229 518,822
  MaintenanceEquipacnt                 13,100 11,724                                                                                                                                      24,824    31,030
  Paving City Roads             45,000 52,500 59,656                                                                                                              69,539       79,971    306,666 391,369
  Paving Special City Roads   160,000 160,000 166,000                                                                                                            186,921      203,778    876,699 1,124,446

                    Subtotal                                                                             325,000 373,000 339,574                                 409,780      447,245 1,894,5992,426,286

       Subtotal (excl.City Roads) 120,000 160,500 113,918                                                                                                        153,320      163,496    711,234     910,471

   RecurrentExpenditures
    ProvincialRoads                                                                                          12,600 15,900 20,958                                 27,593       29,737    106,788     135,735
    County Roads                                                                                              5.300   5,600 11,205                                34,714       36,964     93,783     118,176
    City Roads                                                                                                9,500 10,300 11,724                                 13.574       15,639     60,737      77,617
    Special City Roads                                                                                       61,300 140,000 116,719                              175,461      214,086    707,566     896,403

   Other Expenditures
    Consultants'Studies                                                                                         3,100                       4,400      5,188                              12,688      16,413

                    Subtotal                                                                                 91,800 176,200 165,794                              251,342      296,426    981,562 1,243,344

       Subtotal ':xcl.City Roads)                                                                            21,000                         25,900    37,351         62,307    66,701    213,259     270,324

                                        TOTAL                                                            416,800 549,200 505,368                                 661,122      743,671 2,876,1613,669,630

TOTAL (EXCLUDINGCITY ROADS)                                                                               141,000 186,400 151,269                                215,627      230,197    924,493 1,180,795

NINISTRY OF TRANSPORT (NOT)
  Assistanceto Road Transport
    industry - Terminals,etc.                                                                                                               14,380    16,963         16,778    10,296     58,417      73,021
  Road Safety                                                                                                                                  750       778                               1,528       1,910
  Studies on Sector Issues and
    MultimodalProjects                                                                                                                       1,500     1,556                                 3,056    3,820

                                        TOTAL                                                                                 0             16,630    19,297         16,778    10,296    63,001       78,751

                              GRAND TOTAL                                                                739,357 932,446 944,722 1,168,5841,308,3685.093,4776,513,158

GRAND TOTAL (EXCL. CITY ROADS) 463,557 569,646 590,623                                                                                                           723,089      794,894 3,141,809 4,024,323
.................................................................................................
                                                                                                                                                                                          -xxix-




                                                                                       Table 68: Actual Highway Investment:                                                                        Expenditures                for    1982-88
                                                                                                                             ....................................................


 .........................................................................................................................

                                   Component                                                                    1982                         1983                            1984           1985          1986                       1987        1988           1982-1988
                                                                                                                                                                                    -*- (Won MilLion)   .-..................                               Won MIn     USS000
 .........................................................................................................................

BUREAU PUBLIC ROADS
        OF
 Capital Expenditures
  Expressway Construction                                                                                      40,000                        65,000                         82,582          70,400        90,660                     90,000      45,000      483,642        711,238
  National Roads
     Paving                                                                                                 ¶30,324                      160,094                            58,509         183,456      101,315                  124,007        134,295      892,000   1,311,765
     Upgrading                                                                                                1,760                        1,818                             1,403           5,527        4,483                    6,585               0      21,576      31,729
     Widening to 4 Lanes                                                                                      6,400                        8,734                            12,255          60,396       50,635                   75,855         84,860      299,135     439,904
  Prov. & County Roads Paving                                                                                 3,199                        4,051                             1,997           9,006       19.806                   96,310         96,095      230,464     338,918
  Bridge Construction                                                                                         6,543                        8,400                             9,44l          23,163        9,949                    3,000          8,298       68,794     101,168
  Maintenance Equipment                                                                                       1,071                        1,100                             1,351           1,729        3,408                    6,484          2,045       17,188      25,276

                    Subtotat                                                                                189,297                      249,197                         167,538           353,677      280,256                  402,241        370,593    2,012,799   2,959,999


   Recurrent Expenditures
    Paved National Roads
      Routine Maintenance                                                                                      13,240                        11,781                         12,693          17,865        16,168                     21,604      31,678      125,029        183,866
      Periodic Maintenance                                                                                      3,371                         1,934                          3,073           3,179         4,256                      5,428       7,665       28,906         42,509
    Unpaved National    Roads                                                                                   9,869                         9,847                          9,620          14,686        11,912                     16,176      24,013       96,123        141,357
    Central Adeinistration                                                                                      2,965                         3,471                          3,661           3,787         3,938                      4,585       5,079       27,486         40,421

                    SubtotaL                                                                                  29,445                         27,033                         29,047          39,517       36,274                      47,793      68,435      277,544        408,153

  Other Expenditures
   Studies                                                                                                       850                         1,011                           2,302           4,353         3,687                      7,795       8,189       28,187         41,451
   Weigh Bridges                                                                                                   2                             21                             24               17           33                        221          120         438            644
   Repayment of Loan                                                                                          29,058                        37,921                          45,455          48,183        59,459                     66,868      85,026      371,970        547,015

                    Subtotal                                                                                  29,910                        38,953                          47,781          52,553       63,179                      74,884      93,335      400,595        589,110

                                         TOTAL                                                             248,652                       315,183                        244,366            445,747      379,709                  524,918        532,363    2,690,938   3,957,262

KOREA HIGHWAY CORPORATION(KHC)
 Capital Expenditures
  Expressway Construction           0                                                                                                              0                            0               78       54,440                  192,770        115,877      363,165        534,066
  Expressway Widening          2,180                                                                                                         19,890                        49,812           53,851       39,028                   20,826         49,010      234,597        344,996
  Upgrading                  19,951                                                                                                           8,135                        12,013           12,446       20,527                   24,843         38,612      136,527        200,775
  Ancillary Facilities            495                                                                                                           1,440                         877            3,707        2,732                    7,175          2,570       18,996         27,935
  Equipment                    1,351                                                                                                            1,390                       1,823            1,160          798                    1,435          2,756       10,713         15,754

                   Subtotat                                                                                   23,977                        30,855                         64,525           71,242      117,525                  247,049        208,825      763,998   1,123,526

 Recurrent Expenditures
  Routire Maintenance                                                                                         19,651                        24,192                         25,485           26,451       28,866                      34,088      44,624      203,357        299,054
  Periodic Maintenance                                                                                         5,692                        24,487                         27,720           28,583       24,857                      24,727      24,450      160,516        236,053
  Facilities                                                                                                      161                           162                            263             277           297                        544          837       2,541          3,737
  Ackninistration                                                                                              4,834                         5,426                          5,582            5,464        6,031                      6,941        8,939       43,217         63,554

                   Subtotal                                                                                   30,338                        54,267                         59,050           60,775       60,051                      66,300      78,850      409,631        602,399

 Other Expenditures
  Reserach and Studies                                                                                              187                           183                            253            265            522                      751         240        2,401          3,531
  Weigh Bridges                                                                                                     177                           352                            207            161            504                      490         s73        2,464          3,624
  Repayment of Loan & Tax,etc.                                                                                   4,985                         4,443                          4,600          5,323          8,518                    6,609       13,652       48,130         70,779

                   Subtotat                                                                                      5,349                         4,978                          5,060          5,749          9,544                    7,850       14,465       52,995         77,934

                                       TOTAL                                       59,664             90,100 128,635 137,766                                                                            187,120                  321,199        302,140    1,226,624   1,803,859
.......                              ..................................................................................................................
                                                                                                                                                                                             -xxxo-




                                                                                     Table 68: Actuat Highway investment: Expendituresfor 1982-18
                                                                                                                            ....................................................


.........................................................................................................................

                                 Component                                                                    1982                           1983                           1984                      1985                               1986                              1987                 1988           1982*1988
                                                                                                                                    (Won Million).
                                                                                                               *----------------------          .                                                                                                  ----. ------.                                ----      Won Mtn      USS'OOO
   ....................................................                                                                                                                            ..    ...........................................................................................                                                .

MINISTRYOF HONE AFFAIRS(MOHA)
 Capital Expenditures
  Paving ProvincialRoads                                                                                     96,505 103,953 128,523                                                                  9,659                           126,800                            202,952                108,615      M.006      1,142,656
  Paving County Roads                                                                                         7,225 55,536 39,645                                                                   19,440                            29,737                             64,472                 45,586      261,641      384,766
  MaintenanceEquipment                                                                                        2,147     753   1,594                                                                  1,566                             5,282                              1,446                    912       13,700       20,147
  Paving City Roads                                                                                          39,610 37,176 44,419                                                                   66,783                            52,414                             64,655                 67,277      372,333      547,548
  Paving Special City Roads                                                                                  69,027 86,826 115,469                                                                 106,813                            88,798                            144,424                180,972      792,329    1,165,190

                   Subtotal                                                                                214,513 284,243 329,650                                                                204,261                            303,030                            477,949               403,362     2,217,009    3,260,307

     Subtotal (excl. City Roads) 105,877 160,242 169,762                                                                                                                                             30,665                          161,819                            268,870                155,113    1,052,347    1,547,569

  Recurrent Expenditures
   Provincial  Roads                                                                                             5,547                          7,119                          6,274                   6,240                              6,846                            21,699               16,333       70,057      103,026
   County Roads                                                                                                  3,717                          4,460                          4,417                   5,222                              4,979                            10,309                7,001       40,105       58,978
   City Roads                                                                                                    4,757                          6,552                          7,728                  10,148                             10,703                             9,831               22,248       71,966      105,832
   Special City Roads                                                                                            2,432                          4,037                          7,049                   7,147                             10,021                            11,042               12,002       53,730       79,015

 Other Expenditures
  Consultants'Studies                                                                                            1,223                          4,514                          2,782                     1,415                              2,625                              3,900             4,893       21,351        31,398

                   Subtotal                                                                                   17,675                        26,682                          28,250                   30,172                              35,173                            56,781               62,477      257,209      378,249

     Subtotal (excl. City Roads)                                                                              10,486                        16,093                          13,473                    12,877                             14,449                            35,908               28,227      131,513      193,402

                                        TOTAL                                                              232,188 310,925 357,899                                                                234,433                            338,204                            534,730                465,839    2,474,218    3,638,555

 OTAL (EXCLLDINGCITY ROADS)                                                                                116,363 176,334 183,235                                                                   43,542                          176,268                            304,779                183,340    1,183,860    1,740,971

 INISTRY OF TRANSPORT  (NOT)
 Assistance to Road Transport
   Industry   Terminals, etc.
  Terminals                                                                                                      1,500                                   0                           0                   2,000                               1,564                                     844       2,000        7,908        11,629
  Inter City Buses                                                                                                  104                                155                         198                      218                                 187                                    253          323       1,438         2,115
 Road Safety                                                                                                          0                                  0                           0                        0                                   0                                      0            0            0            0
 Studies on Sector Issues and
  Nultimodal Projects                                                                                                   523                     2,435                              468                           259                               356                                 582       2,065        6,688        9,835

                                        TOTAL                                                                    2,127                          2,590                              666                   2,477                              2,107                               1,679            4,388       16,034        23,579

                             GRANDTOTAL                                                                    542,631                      718,798                         731,566                   820,423                            907,140 1,382,526                                       1,304,730    6,407,814    9,423,255

 RANDTOTAL(EXCL. CITY ROADS)426,806                                                                                                     584,207                         556,902                   629,532                            745,204 1,152,575                                       1,022,231    5,117,456    7,525,671
  ......................................................................................................
                       PROJECT COMPLETIONREPORT
  A. PROVINCIALANDCOUNTY ROAD DEVELOPMENTBY MINISTRYOF HOME AFFAIRS
                               PREAMBLE


      The Government of Korea representedby the Ministryof Rome Affairs
(MOHA) has requested the IBRD assistancein the financingof a program to
improve some 1,000Km long provincialand county roads network throughout
the country. Major componentsof the project maybe summarizedas below:
      (a) Improvementof about 1,000Kmlong provincialand county roads
          networks which were among 2,000Km long rural roads selectedas
          priority rated group for improvementthrough priorityscreening
          studies performed by the MOHA(1979.9 - 1981. 2), under Loan No.
          1640 - KO. The first 1,00OKm long package of provincialand
          county roads have been implementedunder Provincialand County
          Roads Project (LN. 2228 - KO) from April 1983 through June 1989
          and PCR had been prepared and submitted to the IBRD under separate
          heading of PCR for LN. 2228 - KO. A detailedengineeringstuidies
          of the second 1,000Km long provincialand county road networks
          have been completed under LN. 2228 - KO from August 1983 thirough
          August 1984.
      (b) Consultantservices for supervisionof the improvement works for
          the second 1,000Km long networks of provincialand county roads.
                         of
      (c) Implementation the road safety countermeasures    recommendedby
          the road safety studies which had been jointly carried out by
          Road Traffic Safety Association(RTSA) and Ross-Silcockduring the
          period of June 1983 through April 1984.
     The project for the improvementof provincialand county roads has been
commenced in March 1985 and completed in June 1989. On the occasion of
completing the project the MOHA, in compliancewith the Loan Agreement,
intends to turnish to the IBRD the Project CompletionReport(PCR).
                                       -2-




                               PROJECT COMPLETION REPORT
                                HIGHWAY SECTOR PROJECT
                        PROVINCIAL AND COUNTYROADSDEVELOPMENT
                                LOAN NO. 2392 - KO


                                  I.   INTRODUCTION


 A.    Improvement of   rovincial and count   roads

      1.01 The objective of the roject is to support Government's policy
 of promoting economic development in rural area by the reduction of
 transport costs through the improvement of the provincial and county roads
 network which have been neglected till the end of the Fourth Five Year
 Economic Development Plan (1977 - 1981). The project aims to better
 the transport means between the county centers and populated town areas
 with the primary and secondary road networks, consequently reducing the
 transport costs of the farm products and promoting off-farm income
 opportunities for the rural population by providing inexpensive access
 to secondary urban centers. The project is rated as high priority
 among Fifth Five Year Plan and project roads are located throughout in
 all 9 provincies.

B.     Consultant Services

    1.02 Consultant services have been provided for (i) the supervision
of provincial and county roads improvement works, (ii) providing the MORA
with the second stage DBST training course and (iii) assistance in
identifying traffic safety black-spots and recommending appropriate
traffic safety counter-measures.


              II.   PROJECT IDENTIFICATION, PREPARATION AND APPRA'SAL

Improvement of Provincial and County Roads

2.01     Orlln,   Preparation and Appraisal

       In order to support Government Policy of Promoting economic development
in rural areas by means of reduction of transport costs through the
improvement of the provincial and county roads network, MORA has undertaken
feasibility studies on rui?alroads, aiming to select priority roads
network for ifprovement financed under Fourth Highway Project(1979 - 1981).
Through this study approximately 2,000Km provincial and county roads
networks have been selected as priority improvement roads.   Of these 2,000Km
rural roads, a detailed engineering studies for the first 1,000Km package of
rural roads have been completed (1981. 9 - 1982. 9) as a part of tasks of
the Fourth Highway Project (LN. 1640 - KO), which subsequently have been
implemented financed under Provincial and County Roads Project(LN. 2228 - KO).
For the second 1,00OKm package of provincial and county roads improvement,
MOHA enployed consu>ants (Ingeroute, France and 14 local consulting firms)
to perform the detailed engineering studies (1983. 8 - 1984. 8), implementation
                                   -3-




of which is the main target of the Highway Sector Project (LN. 2392 - KO).
The final output of the studies was 1,033Kmprovincial (689Km) and county
(344Km) roads in 127 road sections (groupedto 117 contract sections),
consistingof asphalticconcrete surfacing(745Km0,   DBST surfacing(263Km)
and gravel surfacing(25Km). The project st"ly was appraised by the IBRD
and implemented under Highway Sector Project(LN. 2392 - KO).,all but 8
contract sections (9OKm) which were implementedunder Provincialand County
Road Project(LN. 2228 - KO).

2.02 In August 1985, while improvement   works of the provincialand
county roads financedunder Highway Sector Loan (LN. 2392 - KO) were
in progress, it was agreed among MOHA and the Bank that additionalworks
be added to the project. Additionalworks consisted of extensionsto the
ongoing project road sectionsby 89Km(25 road sections) and 30 new road
sections(l9ORm). An additionalconsultant team was added to the construction
supervisionconsultantin order to carry out the detailed engineering
for the improvement. Major part of the field surveys and engineering
studies were subcontracted eight local consultingfirms selected by
                           to
MOHA. Engineeringstudies commenced in late August 1985 for four-month
period, completingthe services in late December 1985, with submissionof
contractand tender documents (Ref. Consultants Final Report, December 1985).

Road Safety Implementation

2.03 Based on the Action Plan and recommendations  derived from the Traffic
Safety Study(1983.6 - 1984. 4) pcrformed jointly by RTSA and Ross-Silcock,
-OHA employedRTSA to perform detailed engineering studies for implementation
of traffic safety countermeasures preceded by identification the most
                                                            of
criticaltraffic safety black spots. Detailed engineering studies were
carried out from April through September 1987, identifying68 black-spot
locationsconsistingof improvementworks in 50 locations and installation
of safety facilitiesin 62 locations.

2.04   Targets and Goals

       The project was the second package of the MOHA's long-term development
program for the improvement provincialand county road networks. It is
                            of
emphasizedthat the project is one of the high priority program of the Fifth
Five-yearDevelopmentPlan of the country for the regional economicpromotion
and development. The key assumptionsmade in the forecasts of the project
was trafficvolume on the road sections to be improved,which turned out to
be quite realistic in terms of the increase in trafficvolume which is
consideredto be generatesby improvementof the roads.
                                   -4-




                           11..   I.MPLEMENTATION


Original 1,033Km of provincial and county roads

3.01   As stated in paragraph 2.01, a total of 943Km roads in 109 contract
sections out of 1,033Km (117 contract sections) were to be implemented
under Highway Sector Project(LN. 2392 - KO), 90Km of roads(8 contract sections)
being transferred to be implemented under LN. 2228 - KO.   Nevertheless.
scope of the consultants' supervision services were to include supervision
of the works for these 8 contract sections as well as 27 road sections(343Km)
carried over from LN. 2228 - KO project, making a total project work-load
to 1,376Km of roads(144 contract sections). It is noted here that 27 road
sections(343Km)carried over from LN. 2228 - KO was caused by additional
work-loads(extensionsof road stretches and new bridges) added to 27 road
sections in November 1984 by agreement among MOHA and IBRD, about one month
before the contract closing time of LN. 2228 - KO Project (Ref. PCR for
LN. 2228 - KO prepared by MOHA. June 19893. The intention was solely to
improve more of the roads with funds made available by under-runs of bids
of LN. 2228 - KO Project.   Bids for original 1,033Km roads(117 contract
sections) were accepted and opened from September 18 through September 21,
1984 in all 9 provinces(by international competitive bidding procedures)
and construction contracts were concluded on November 24 through December
3, 1984 after review and agreement by the IBRD of Bids Evaluation Report
(October 1984) prepared by the Consultant. The works for all contract
sections commenced between March-April 1985 and were completed by the end
of December 1986, all but 8 road sections where further additional works
were added, nevertheless completing about 96X of the total value.   These
8 road sections were completed by the end of September 1987, completing
the whole of the project road sections(109 contract sections).

Additional roads

3.02   Of the additional 279Km roads, 89Km road stretches were extensions
to 25 project road sections which were included into the contracts by means
of variation orders(Ref. Para 2.02).   Bids opening for 190Km road sections
took place between February 24 through 27, 1986 in 9 provinces.   Construction
contracts for these 32 contract sections were concluded on April 3-18, 1986,
after review and agreement by IBRD of Bids Evaluation Reports(March 14, 1986)
prepared by the Consultant. Works for these 32 sections commenced immediately
following the contracts were made, completing the works in 18 sections by the
end of Deceuber 1986 and remaining 14 sections by the end of September 1987.
In July and September 1988 additional works to 11 new road Sections were added
to the project by agreement among MO*& and IBRD, thus, making the project
work-loads to 1,326Km roads in 152 contract sections. Project was completed
in June 1989.            1

ReportinR

3.03   Throughout the construction period monthly progress report was
prepared stating construction activities. quality control of the works
carried out, recommendations issued by the consultants aiming to improve
works procedures and financial statement of the relevant month.   These
reports were extremely benefitial to the supervisory personnel to watch
over contractors' working procedures and improving quality of the works.
                                                                                  r
                                      -5-




Procurement

3.04   All biddings were executed following international competitive
bidding procedures, but no foreign contractors participated in bidding.
Although international competitive bidding procedures caused some delays
in implementing the works because of the time required for the contractors
prequalificationnotice and bid announcement, the procedures helped in
reducing the contract costs.   For the improvement of provincial and county
roads, consultants were emnployed. The consultants teams were jointly formed
with foreign and local consulting firms, which were formed by mutual agreement
among MOHA and IBRD.   Foreign consultants were selected on the basis of
their experiences in Korea in the similar tasks and remunerations were set on
the basis of international levels. Local consultants were selected among
leading firms in the country with wide range experience in the similar tasks.

Costs

3.05   Actual costs of the project roads were closely monitored by means
of variation orders which were computated and verified upon occurrence of
all variations in the contract amounts, therefore, the costs actually
incurred were quite correct.


                           IV.    ECONOMIC EVALUATION

5.01     The purpose of the present final evaluation is to determine the
economic returns of the project, using actual investment costs and traffic
volumes.     The road by road evaluation is made through the "with-without"
approach   as was in the case of original evaluation at appraisal time.
The only differences at this final stage would be that the evaluations are
made using actual costs and traffic while the original evaluations were
made on the basis of estimated costs and traffic. Table 3 shows actual
traffic volumes on each road section and original'   and final estimates of
economic rate of return are shown in Table 1 and actual and forecast
estimates of project costs are shown in Table 2.


                                 V.   CONCLUSIONS

6.01    As stated previously (para. 2.04) the project was rated as top-priority
among the Fifth Five Year Plan and the resultant project in the light of
Sixth Five Year Plan more than justifies the project.    Although the scope
of the project exceeded the original intention by more than 1411, the size
of the project was not overly burdensome to MORA, considering the project
times involved. In concl\ison the project was well designed, implemented
within the capacity of the provinces. Throughout the duration of the
project, Mission from IBRD made periodic visits to Korea to review the works
and management of the project.    Number of visits by the IBRD ranged between
two to four times per year, depending on the work load under progress.
The Mission's  visits were timely and its reviews of the project was quite
helpfull.
                                           -6-


                                                                                    rABIll 1
                                                                                    Page 5 of 1

                               PROJECT COMPLETION REPORT
                           HIGHWAY PROJECT (LOAN / 2392 - KO)

             Ex-post and Original Estimates of Economic Rates of Return


                                                                              Unit :     V'000
Project               Proportion of total investment               Rate of reeturn )

components     Total Cost                  Proportion(%)           estimate        Original

 I - P1        14201,200                         0.7                 18.4             18.0
 1 - P3         I~~~~~ ~
                   ~~
                 616,938              -          0.4 1,01._0         23.6     .5      21.0
                 1 P81,210,650
                  -          ~        ~      ~   1.1
                                                       ~       ~    etiat
                                                                     19.8
                                                                                     etiat
                                                                                      16.0
 l-P4/P9       1,889,811
 1 -P5         1,016,700                         0.6                 15.3             15.0
 1 - P6          291,459                         0.2                 30.3             23.0
 1 - P8        1,210,60                          0.7                 3.0              18.0
 1 -           11 3817,256                       1.0                 29.7             24.0
 1 - P12         330,603                         0.2                 16.5             16.0
 1 - P13         409,520                         0.2                  18.0            17.0
 1-            1,213,035                         0.7                 26.5             20.0
 1I- G3          830,970                         0.5                 23.0             24.0
 1 - G6          682,500                         0.4                  15.1            14.0
 1 -G7           490,455                         0.3                 16.6             15.0
 1 - A3        2,699,445                         1.5                 29.3             28.0
 1 - A2          414,435                         0.2                 38.4             40.0
 2 - A3          430,100                         0.2                 24.7             23.0
 1 -A4           413,123                         0.2                 46.4             33.0
 1 - A5          475,620                         0.3                  32.1            22.0
 2-P6-A           575,568                        0.3                  17.3             16.2
 1-P7-A          501,480                         0.3                 21.4              18.9
Sub-Total     17,510,868                         10.0                23.6             21.8

 2 -   PI        653,272                         0.4                 30.5             27.0
 2 -   P2        687,729                         0.4                 32.2             22.0
 2 -   P3      2813,360                          1.6                 23.6             19.0
 2S-   P4      2,703,170                         1.4                 28.4             33.0
 2 -   P5      1,401,834                         0.8                 28.4             21.0
 2 -   P6        862,107                         0.5                 3126             35.0
 2 -   P7        525,000                         0.3                 21.6             20.0
 2 -   P8        773,844                         0.5                 23.2             23.0
 2 -   GI      1,456,000 -                       0.8                 20.9             16.0
 2 -   G3      1,910,226                         1.1                 25.0             18.0
 2 -   G6      1,436,148                         0.8                 14.6             12.0
 2 -   G7      1,039,528                         0.6                 26.2             27.0
 2 -   Al        705,726                         0.4                 28.0             20.0
 2 -   A2      1,283 600                         0.7                 42.6             27.0
Sub-Total      17,951,544                        10.3                26.2             23.1

  3 - PI        1,977,612                         1.l                21.4             20.0
  3 - P2          531,600                         0 3                32.7             31.0
                                          -7-


                                                                           'ABl:lrI
                                                                           Page   5 of   2

                             PROJECT COMPLETION REPORT
                         HIGHWAY PROJECT (LOAN / 2392 - KO)

              Ex-Dost and Original Estimates of Economic Rates of Return



Project             Proportion of total investment          Rate of return (%)
                                                           Ex-post      Original
components      Total Cost               Proportion(%)       estimate     estimate

  3 - P3        1,j25,835                    0.8              23.6          25.0
  3-P5/G4       1,026,186                    0.6              37.8          34.0
  3 - P6          319,000                    0.2              25.7          22.0
  3 - P7          809,130                    0.5              24.8          18.0
  3 - GI        1,544,970                    0.9              23.7          29.0
  3 - G2          280,000                    0.2              21.2          18.0
  3 - G3        1,057,760                    0.6              18.5          17.0
  3 - G5        1,102,420                    0.6              18.9          15.0
  3 - Al          616,875                    0.4              34.9          25.0
  3 - A2          657,195                    0.4              31.0          20.0
  3 - A3        2,377,200                    1.4              22.0          25.4
Sub-Total      13,625,783                    8.0              24.4          22.5

 4-P2/3-P4      1,043,900                    0.6              21.1          17
 4 - P3           677,900                    0.4              28.7          20.0
 4 - P5         1,364,400                    0.8              26.3          24.0
 4 - P7         1,636,290                    0.9              37.4          21.0
 4 - P8         1,279,644                    0.7              27.2          22.0
 4 - Gl         1,568,030                    0.9              21.7          25.0
 4 - G2         1,752,827                    1.0              16.8          13.0
 4 - G3         3,234,230                    1.9              29.1          20.0
 4 - Al         1,655,000                    0.9              23.6          21.0
 4 - A2           295,554                    0.2              29.4          22.0
Sub-Total      14,507,775                    8.3              25.8          20.6

 5   -   P1     2,784,620                    1.6              26.7          23.0
 5   -   P2     1,531,180                    0.9              17.1          15.0
 5   -   P4     2,483,250                    1.4              21.2          20.0
 5   -   PS     1,121,600                    0.6              19.4          15.0
 5   -   P6       847,140                    0.5              23.1          21.0
 5   -   P7     1,326,625                    0.8              25.8          23.0
 5   -   P8       316,029                    0.2              34.9          31.0
 5   -   Gl       647,745                    0.4              27.8          23.0
 5   -   G2       725,400                    0.4              21.7          19.0
 5   -   G3       760,000                    0.4              20.1          18.0
 5   -   G4       673,407                    0.4              19.4          17.0
 5   -   G5       905,100                    0.5              21.1          19.0
 5   -   G6       810,598                    0.5              20.8          19.0
 5   -   Al       750,800                    0.4              22.0          21.0
                                                                                                   rABLIE 1
                                                                                                   Page    5 of   3

                                       PROJECT CUO?PLETION RIlPoRT
                                 HIGHWAY PROJECT (LOAN / 2392               - KO)

                  EX-DOSt and    Original   Estimates       of   Economic     Rates ot   Return




Project                  Proportion of      total investment                        Rate of   return (%)
                                                                        c n_a sp oEX-post         Original
COmPOnentS          TOtal Cost                          Proport;on(%)             estimate          estimate

   5 - A2              903,000                                0.5                     27.3           27.0
   5 - A3              898,800                                0.5                     24.8           21.0
Sub-Total          17,485,294                               10.0                      23.0           20.2

   6    -   P1      1,225,600                                 0.7                     28.7           28.0
   6   -    P2      1,179,658                                 0.6                     21.7           20.0
   6   -    P3      1,058,460                                 0.6                     24.9           24.0
   6   -    P4         472,800                                0.3                     31.4           34.0
   6   -    P5      2,821,500                                 1.6                     31.1           27.0
   6   -    P6      2,320,500                                 1.3                     18.9           18.0
   6   -    P7      1,882,047                                 1.1                     27.7           26.0
   6   -    P8         435,645                                0.2                     15.6           14.0
   6   -    P9         618,240                                0.4                     19.5           18.0
   6   -    PIO     1,719,690                                 1.0                     23.1           21.0
   6   -    P11        624,942                                0.4                     28.3           20.0
   6   -    Gl      1,571,115                                 0.9                     17.0           15.0
   6   -    G2         675,990                                0.4                     23.9           25.0
   6   -    G3      1,064,385                                 0.6                     24.7           22.0
   6   -    G4         330,800                                0.2                     17.0           16.0
   6   -    G5      1,473,140                                 0.8                     28.9           25.0
   6   -    G6      1,125,915                                 0.6                     18.1           16.0
   6   -    G7         369,537                                0.2                     23.7           21.0
   6   -    G8         927,500                                0.5                     21.0           16.0
   6   -    Al      3,182,190                                 1.8                     29.4           28.0
   6   -    A2      1,224,000                                 0.7                     20.0           17.0
   6   -    A3      1,105,650                                 0.6                     19.6           16.0
   6   -    A4         705,900                                0.4                     34.0           17.0
Sub-Total          28,115,204                               16.0                      24.6           22.4

   7   -    P1        762,489                                 0.4                     18.8           15.0
   7   -    P2      3,520,440                                 2.0                     21.9           19.0
   7   -    P4      3,166,800                                 1.8                     32.9           32.0
   7   -    P5      2,460,100                                 1.4                     18.9           17.0
   7   -    P6      2,482,200                                 1.4                     21.2           21.0
   7   -    P7        314,412                                 0.2                     25.0           19.0
   7   -    P8      1,675,700                                 1.0                     17.8           17.0
   7   -    P9      2,179,500                                 1.2                     27.2           27.0
   7   -    P10       880,700                                 0.5                     20.5           20.0
   7   -    P11     1,343,700                                 0.7                     24.6           23.0
   7   -    Cl      1,309,497                                 0.7                     27.6           27.0
   7   -    G2        496,629                                 0.3                     15.4           14.0
   7   -    G3      2,030,700                                 1.2                     23.9           22.0
                                             -9-


                                                                              rABLE    I
                                                                              Page     5 of 4

                                PROJECT COMPLETION REPORT
                            HIGliWAY PROJECT (LOAN / 2392 - KO)

              Ex-post and Original Estimates of Economic Rates of Return




Project             Proportion of total investment                Rate of return (%)

components      Total Cost                  Proportion(%)         Ex-post       sttimate

 7   - G4       1,932,000                          1.1              23.9        19.0
 7   -   G5       590,310                          0.3              17.8        12.0
 7   - G6       1V860,600                          1.1              19.2        18.0
 7   - G7         371,280                          0.2              15.5        12.0
 7   - Al       1,687,000                          1.0              26.1        22.0
 7   - A2       1,727,370                          1.0              34.9        27.0
Sub-Total      30,791,427                          17.5             24.2        22.1

 8 - P1         2,025,240                          1.2              28.4        24.0
 8 - P2         4,023,784                          2.3              24.2        24.0
 8 - P3         2,146,506                          1.2              26.6        25.0
 8-P4/G1        1,080,010                          0.6              28.5        24.0
 8 - P5         2,195,042                          1.2              24.4        24.0
 8 - P6         1,702,550                          1.0              29.7        30.0
 8 - P7         2,238,819                          1.3              25.6        28.0
 8 - P9           908,214                          0.5              21.8        20.0
 8 - P10        1,286,660                          0.7              25.4        19.0
 8 - Pl1        1,039,605                          0.6              26.3        22.0
 8 - P12          336,500                          0.2              27.7        28.0
 8 - G2           483,307                          0.3              19.7        20.0
 8 - G3           629,900                          0.4              29.0        32.0
 8 - G5         1,617,460                          0.9              22.1        20.0
 8 - G6           811,200                          0.5              28.2        24.0
 8 - Al           653,100                          0.4              25;8        25.0
 8 - A2         1,562,100                          0.9              28.8        31.0
 8 - A3           847,000                          0.5              39.2        21.0
 8 - A4           417,950                          0.2              42.7        39.0
 8 - A5           478,485                          0.3              47.4        26.0
 8 - A6           493,290                          0.3              24.4        20.0
 8-G6-A           365,400                          0.2              27.5        23.8
Sub-Total      27,342,122                          15.7              26.8       24.5

 9-?1/P2        1,799,000                           1.1              34.0       21.0
 9 - Gl           947,668                           0.5              24.0       23.0
 9 - Al           481,240                           0.3              19.7       17.0
 9 - A2           370,000                           0.2              19.7       17.0
 9 - A3           184,065                           0.1              17.2       14.0
 9 - A4           353,325                           0.2              18.3       14.0
Sub-Total       4,135,298                           2.4              26.8        19.4
                                           -10-


                                                                           TABIE     I
                                                                           I'page 5 of 5

                             PROJECT COMPLETION REPORT
                         HIGHWAY PROJECT (LOAN / 2392 - KO)

              Ex-post and Original Estimates of Economic Rates of Return




Project             Proportion of total investment            Rate of return (%)

                components
                      Cost   Total       Proportion(          Ex-post
                                                                estimate   Original
                                                                             estimate
components      Total Cost               Prooortion(%)

 3-P7-A1          210,840                     0.1               17.2          21.7
 7-E5-Al          574,600                     0.3               27.8          28.0
 1-El-A           789,600                     0.5               19.6          21.5
 2-El-A           153,800                     0.1               27.8          31.1
 4-E5-AliAJ     1,068,635                     0.6               25.5          28.4
 8-E2-A           109,150                     0.1               23.7          25.0
 1-3-A             97,570                     0.05              26.6          32.7
 1-6-A             62,700                     0.05              17.0          20.2

' Sub-Total     3,066,895                         1.8            23.4         26.0

GRAND TOTAL    174,532,210                  100.0                24.8         22.5



 KEY:
 Project Components, e.g. 2-G4-A
                                                                               (see Map).
 1.   First Number: 1 to 8 identifies Province in which contract is located
                                                                    - Chungcheong Nam Do,
      1 - Gyeonggi Do, 2 - Gangweon Do, 3 - Chungcheong Bug Do, 4
      5 - Jeonra Bug Do, 6 - Jeonra Nam Do, 7 - Gyeongsang Bug Do, 8 - Gyeongsang
      Nam Do, 9 - Jeju Do.
 2.   Second group consisting  of letter and number identifies  type of road and
      contract number.
      P - Provincial, G - Gun (County), A and E - Addit'.onal  and Extra.

 3. Last letter A - Additional contract.
                                                                          -ll-
                                                                                                                                             TablO       2
                                                                                                                                             Pae        S of    I

                                                               PROJEC COTIULSYIOU
                                                                                REKPtT

                                                               PROJECT
                                                         HICHWAY      (LOAN/ 2392 - KO)

                                                 Actual and Forecast Estimatesof Prouect Cost

                                              (Refers     to Ministry    of Ho_ Affairs        Coapontocs only)
                                                                                                                                                 Unit        W 000
                                                        Actual cost                               Forecast esctIate of cost           Actual eost         s a
                                               Local                    Total                      Loc*l             Total            forecast
 Project           Lensth(SK,     Stand-      Country     Fo.%l'n          USS      Contract      Country    Foreign       r          eat tmtt           Contrat
:owensflt jrsipnal        Final   ard/a       currency       Wequl      equiva-      amount       currency   Wquiv. aquiva-           of cost(t)          amount
                                                                         lent                                         lent
 1985 -    1987
 I-Pl         tl.0        11.0    AC P2       674.269       526.e31 t.462.203        959.700        782,610       590.390 1.716.250        65.2              121.9
 I-P3             5.7      5.7    AC P3       346.306       270.632       750.990    512.620        391.020       294.986    857.500       87.6              117.2
 t-F'
 1 P9         11.9        11.9    AC P2     1.060.807       829.004 2.300.439ui1.797.600          t.12S.750       849.2S0 2.468.750        93.2              102.3
1-P5              7.5      7.5    OS55        570.704       445.996 1.237.614        935.510        594.510       448,490 1.303.750        94.9              105.8
1-?6              3.2      3.2    AC Pn       163.605       127.854       354.789    304.689        272.460       205.540    597,500       59.4              116.4
t-PS              7.3      7.3    AC P3       679.574       531.076 1.473.707 1.019.655             617.310       465.690 1.353,750       106.9              115.6
 1-Flo                            AC P1.
1-05          16.9        16.9        P2    1.020.080       797.176 2.212.119 1.048.047             628.700       474.300 1.378,750       160.4              166.9
1-S
1-P12             2.1      2.1    AC P3       185.577       145.026      402.438     290.000        174.420       131.580    362.500 105.2                   111.0
1-Pt)             3.9      3.9    AC P2       229.876       179.644      4986503     360.000        259.920       196.080    570.000       67.5              110.8
1-0I              9.7      9.7    AC P2       680.913       S32.122 1.476.610 650.640               520.410       392.590 I.1.250         121.4              161.6
1403              4.8      5.1    AC P2.      466.448       364.522 1.011.528        518.536        367.060       276.920    e05.000 121.7                   156.1
                                     P3
1-C6              S.9      6.4    D8ST        383.108       299.392       830.797    522.900        315,210       237.790    691.250      120.2              127.1
I-G7              3.8      3.8    DUST        275.307       21S.148       597.024    439.005        266.190       200.610    563.750 95.7                    108.6
I-Al              9.8      9.8    AC P3     1.515.279 t.184.166         3.285.995 2.670.360       1,565.790 1.161,210 3.433.750            93.0              98.4
I-A2              2.8      2.8    AC P2       232.635       181.800      304.486     350.260        270.750       204.250    593.750       65.0              115.2
1-43              3.4      4.2    AC P2       241.428       188.672      523,54      311.000        251,370       189.630    551.250       95.0              134.7
I-A4              5.8      5.3    PAC P3      231.898        t8l.225     502.8t9     412.400       414.970        313.030    910.000       55.3              97.6
1-43          5.3          5.9    AC P2       266.980       208.640      578.965     425.040       380.760        287.240    835.000       69.3              109.0
I-P6 /A       4.1          4.1    AC P2       323.083       252.465       700.631    313.650        19,240        142.760    415,000      168.9              175.6
I-PT/A        3.4          3.4    AC Pal      281.496       219.984      610.444     4U6.000       323,190        243.610    700.750       66.1              100.5
Subtocal     128.3      130                9.829.373 7.681.495 2.35.725.14.326.052               9.711,660 7.326.340 21,297.500 100.1                     119.0
2-P1          7.1          7.1    AC t2       366.701       286.371      795.216     617.000       527.250        397.750 1.156.250        68.6              103.1
2-P2          9.3          9.3    AC P2       386.043       301.666      837.163     636.425        567.150       427.850 1.243.750        67.3              103.2
2-P3          9.5        23.3     AC Pti 1t579.223 1.234.137 3.424,662 1.279.152                    759,240       572.760 1."5.000        205.7           214.2
                                     P2
2-P4          13.4        17.5    AC P2    1.346.971 1.054.199 2.925.344 1.470.000                 909.720     686.260 1.995.000 146.6                       1I9.2
2-PS          13.1        13.1    AC PSI      76.891        614.943 1.704,432 1.341.900. 119-52S0                 901.710 2,621.230        65.1              101.7
                                      PI
2-P6          6.6         6.6     A0C 2      463,926        37,6181 1.049.430        706,125       437,760        330.240    90.000       109.3              116.9
2-P7          4.1         4.1     AC P2      294.68         230.302      639.075     475.900       267,.50        217,150    631.250      101.2              107.9
2-PS          7.3          7.3               434.362        339.482      941.9"      44.00           8475)0    290.250       843,730      111.6              167.9
2-Cl          5.9         9.7     AC P2.     817.296        638.704 1.772.36         536.500       40.260         30.740      "I7.        197.5              254.6
                                      P3
2-C3          6.1        126      C
                                  A        1.072.267       837.959 2.325.29         1,163.600      703M.90        531,050 1.343.750 150.6                    159.9
2-06          6.7         6.7     OSST       606.151        629,995 17"48.201          4.150         10.15.0      3J8650 1.116.750 156.3                     161.6
2-07          4.2         4.2     AC P2      583.518        456.010 1.265,402        750,0         445,740        336*260    977,5M0      129.5              134.6
2-A"          9.0         9.0     AC P2      39M.14         309.581      659,070      67.600       676.300        511,700 1.467.500        57.6              102.9
i-A2          6.0        11.6     AC P2       720.523       563.077 1. 362.50W       973,000       975.270        735.730 2130.750         73.1              126.5
cubtatel    II4.S       144.5              10,076.737 7.874.607 26852.153 11,949,412              M.IL1N6004,632.320        19926,000     113.3              14.3
                                                               -12-

                                                                                                                            Table   2
                                                                                                                            page    of 2

                                                     PROJECT        REPORT
                                                           C0WUPLETION

                                                               (LOAN/ 2392 - KO)
                                                 KICKWAI PROJECT

                                          ACcual end Forecast Etttmets         of Project Cosc
                                       (Refers to Ministry   of Home Affairs     Cooponents only)
                                                                                                                             Unit       W '000

                                              Actual cost                              orecastestimate of coou       roportion of
                                        Local             Total                        Loca1            Total Forecast
 Project       Length(Km) Stand-       Country    Forcian    13W        Coutrsct     C n  try   Inreigo    133T estimate      Contract
CoMonent   Original Final ardla        currency           squiva-        amunt       c          baquiv. squiva- of cost()      aount
                                                            lent                                          lent
3-tl        15.2    18.0 AC P2       1.110.093     867.159 2.407,318 1.392.000 1.242.030            936.970 2.723.750     8.4           138.4
3-2          3.3     4.1   AC P2       298.403     233.197   647.109    o09.500 319.770             241.230 701.210       92.3          126.4
3-P3        10.2    1l.l   DIST        744,231     581.604 1.613.920     978,180      193,370       447.630 1.301.250     124.0         132.0
3-P5/GA      9.2    11.0   AC P2       176.029     450.157 1.249.161 754.950          734.160       533.840 1.610.000      77.6         132.4
3-16         2.6     3.2   AC P2       179.064     139.936   388,314     256.000      195.510       147,490     428.750   90.6          121.3
3-P7         6.6     9.8   AC P2       454.189     354.941   984.942     152.000      310.150       384.850 i.1168750 88.0              142.7
3-Cl         7.5     9.7   AC Pt       867.238     677.732 1.860.669 915.750          s43.780
                                                                                           410.220            1.192.500   157.7         164.3
3-G2         5.4     5.4               157.172     122.828   340.840     236,530      190.910       144.050     418.750   81.4          115.3
3-C3         7.8     7.9   DIST        593.752     464,008 L.287.596     897.700      5385.60       406.350 1.181.250 109.0             114.7
3-CS         8.5     8.5   AC P3       618.821     483.599 1.341.960     924.860      857.850       647.150 1.881.250 71.3              116.1
3-Al         4.8     4.8   AC P2       346.270     270.605   750.913     593.840      153,470       417.130 1.213.750     61.9          101.2
3-A2         8.2     8.2   AC r-l      368.903     288.292   799.994     635,800      695.970       525.030 1.526.250     52.4          100.7
3-A3        10.8    10.8   AC 13     1.334.3931.042.607 2.893.731 1,094.000           623.580       470.420 1.367.500 211.6         211.6
Subtotal   100.1   112.9             7.648.1585.977.22s4s86.467        9.641,130 7.399.240 5.732.760 16.65.000 99.1                 137.6
3-2         Q10.S 11.4     AC 12.      585,972     457.928 1.270.724     884.100      801.990       605.010 1.754.750     72.3          111.0
4-P3         7.9     7.8   AC P3       380.526     297.374   825.198     646.000      526.110       396.890 1.113.750     71.1      102.2
4-YS        10.5    10.2   AC P2       765.879     198.521 1.660.864 1.074.900        901.170       679.830 1.976.250     84.0      123.6
4-P7        10.4    16.4   AC F2       918,498     717.792 1.991.832 699.260          632.130       476.870 1.386.250     143.7     227.9
4-PS        11.4    11.6   AC P2       718.302     561.342 1,557.692 1.161.500        980.400       739.600 2.150.000     72.5          106.9
,6-G1       11.5    11.6   AC Pal      880.182     687.848 1.908,740 1.032.500       623.010        469.990 1,38.6250     139.7     147.9
4-G2        11.1    11.1   AC rM       983.914     768.91J 2.133.6911,238.000         739.290       157.710 1.621.250     131.6         137.9
4-03        12.5    18.1   AC Pr     1.815.470 1.418.760 3.936.9111.622.000          983.620        742.180 2.157.500 182.5             194.2
                              P2
4-Al         9.2     9.2   AC Prl      929.001     725.999 2.014.608 1.623.000       976.410        736.590 2.141.250     94.1          9.3
4-A2         3.6     3.6   AC Pal      165.903     129.651   359.774 279.195         241.680        182.320     530.000   67.9      103.1
Subtotal    98.6   111.4             8.143.6476.364.128 0660.10410.264.455 7,406.010 5.586.990 16.241.250 108.?                     137.6
5-PI         7.9    15.8   AC 12     1.563.090 1.721.530 3.389,677 1.482,831         906,670        684.130 1.968,750     170.4     182.9
s-r2        10.0    10.0   AC Pr1      659,497    671.683 1.63.883     1.456.600     U5.210      667.790 1.941.250        96.0      102.4
1-P4        14.5    14.8   AC nl     1393;922    1.089.328 3.022.824 2.337.300 1.403.91o1.059.090 3.076.750               96.2      103.5
 .-S
  P         9.9     9.9    AC et1      429.S16    492,012 1.365.307 949.620          837.900        632.100 1.837.500 74.3          11S.0
S-P6        6.4     8.4    AC I1       47S.525    371.615 1.031.211 695.100          417.810        315.190    916.250    112.5     116.7
1-17        7.3     3.1    AC Pet      744.674    M81.951 1,614,881      *44.179     391.590        295.410    654.750    166.1     290.2

5-.1        4.7     4.4    AC   t      177.396     138.633   384.698     297.045     257.070        193.930    543.750    68.2      103.6
S-G1        5.2     5.2    AC   t2     363.599    284.146    7u.491      544.600     473.670        357.330 1.038.750     71.9      115.6
5-G2        5.8     6.0    AC P1      407.189     318.211    U3.019      442.031     347.130        261,870    761.250 116.0        159.8
$-GI        6.4     6.4    AC Pt       426.611    333.389    925.137     62B.027     379,050        26S.950     31,250    111.3     117.8
5-G4        4.7     4.7    o6ss       378,003     295.404    819.729      74.000     348.270        262.730    763.750    107.3     114.2
1-cs        1.6     6.5    AC Ft.      080.060 397.040 1.101.765         647-000      391.020       294.960    617.noo    126.5     136.2
                                P3
5-s6        7.3     7.4     6"S       45*0O13     355.585    986.729      515.500 334,590           252.410    733.750 134.5            142.1
 ,-Al       6.0     6.3    AC Pal     421,44      329.354    913.938      o9.0O0 373.920            22.060     620.000 1t.5             120.0
i-A2        1.6     5.6    AC P2       506.881    396.119 1.099.209      749.280      415.430       343.M50     9.750     110.1         1L7.4
S-A3        5.2     1.2    AC P2      504.523     394.277 1.094.096      811.000      526.110       396.69     .13a.7o    94.6          102.4
Subtotal   112.8   128               9,815.017 7.670.277 L284.594 13.268.113 8.729.,50          6.58.450      19.143.750 111.2          128.3
                                                                               -13-
                                                                                                                                                        Table 2
                                                                                                                                                        Paeg        S of     3

                                                                PROJECT CCtLCTIOth          REPORT

                                                            HIGHWAY PROJECT (LOAN/ 2392             -   KO)

                                                   Actual     end Forecasct stimate of Pro1ect Cost
                                               (Refers to Ministry        of    Hom Affairs      Components only)

                                                                                                                                                             Unit               '000

                                                          Actual cost                                    Forecast osCtmte            Of COSt C         orooor.t.n           o
                                                 Local                 Total                              Local                      Total        Forecost
 Pro ect        Length(K.)         Stand-      Country         foreign   USS             Contract        Country          roaln        USS        estiate            Contract
Component   Original    Final ard/l            currency        _quiv.    equiva-           amount        currency        Weuiv. equiva- of cost(Z)                    amount
                                                                          lent                                            .11_lent                                     -


 6-PI         11.6          t1.6   AC/CC        687.966       537,634.   1.491.905       1.049.000            635.550     479.450 1.393.750           107.0                113.8
 6-P2         9.4            9.4   AC P3        662.177        517.481 1.435.981         1.170.300            703.950     531.050 1.543.750            93.0                90.2
 6-P3         9.3            9.3   AC P2        594.145       464.3L5 1,288,66448          963.480            581.400     438.600     1.275.000       101.1                107.0
 6-P4         4.7            4.7   D3ST         265.397       207.403          575.533     390,600            230.260      173.720      505.000       114.0                117.9
 6-PS         12.4          17.5   AC PI.     1.583.792     1,237,708    3.434.571       2.535.000       1.532.160       1.155.840 3,360.000          102.2                108.4
                                      P2
 6-P6        15.4           17.7   AC P2      1.302.566     1.017,934    2.824.711       1.829,1Q0       1.100.100        829.900 2.412,500           117.1                123.5
 5-P3
 6-P7        19.3           19.3   AC P*1     1.056.449       825.598    2.290,988       1.690.000       1t014,600        765.4W0 2,225.000           103.0                106.4
 6-PS         3.0            3.0   AC P2        244.541       191,104      530.304         431.550            254.790     192.210       558,750        94.9                98.3
 6-P9          5.4           5.5   AC *2        347,037       27t.203      752.575         606.900            360.240     271.760       790.000        95.3                101.9
 6-PIG        12.9          13.2   AC P'I       965.313       754,377    2.093,354       1.639.995            982.110     740.890     2.153.750        97.2                102.1
 6-P11        3.9            6.2   AC ?*I       350.799       274.143i     760.733         369.600            218.310     164.690       478.750       158.9           164.7
 6-CI         9.8           14.4   AC P1        881.914       689.201    1,912.495         777.000            461.700     348.300     1.012.500       168.9                196.9
 6-G2          S."           5.5   AC P2        379.453       296,537      822.873         640.080            380.190     286.810       833.750        9.7                 102.8
 6-C3           .9           9.2   AC   PI.     597.471       466.914 1.295.660            971.880            583.680     440.320 1.280.000           101.2                106.7
                                        P3
 6-G4         4.0            4.0   D8ST         185.688       145.112      402.678         325.500            191.520     14.460        420.000        95.9                99.0
 6-05         11.1          11.1   AC PI        826.917       646.223    1.793.232       1.268.400            747.270     563.730     1.636.750       109.4                109.7
 6-G6         4.8            7.0   AC Pl        632.010       493.905    1.370.560         611.000            363.660     274.340       77.500        171.9                179.5
 6-G7         2.9            4.0   AC PSl       207.432       162.105      449.832         264.915            158,460     119.540       347.500       129.4                135.8

 6-G8         8.9            8.9   02 PI        520.633       406.867    1.129,032         s42.OOCt        50160O         371.400     1.100.000       102.6                110.1
 6-Al        13.3           16.4   AC/CC 1.786.258 1.395.932 3.673.633 2.578.989                         1.542.4201.163.5803.382.500                  114.5                120.2
6-A2         10.5           10.5   AC re1       687.068       536.932 1,489.957 1.156.924                     706.230     532.770 1.548,750 96.2                           102.9
 6-A3         7.5            7.5   AC 11        620.634       485.016 1.345,8921,018,500                   636.970        42.030      O401.250         96.0                105.7
6-44          7.7            7.7   AC 12. 396.243 309.657     859.282    722.400   441.750 333.250    968.750                                          68.7                95.2
                                      02
 Subtotal   202.2      223.6             15.781.903I333.30I 3E,224.22923.855.113 5t.aL940 4UBI.060 31.427.500                                         106.9                114.6
 7-Pl         4.5            4.5   AC 13        426.008       334.481      928.167         691.000         419,520        316.4O        920.000 100.9                      107.5
 7-P2        20.9       20.9       AC 12. 1.976.128 1.544.312 4.285.380 3.290.600                        1.092.4601.495.5             4.347.500        96.6            104.2
                                        F3
 7-4         168.5          19.0   AC P*l 1.777.6191.369.1813.854.900 2,900.1001,769,280 1,334.72038,.000                                              99.4                106.3
                                        P2
 7-P5        12.6       u2.7       AC 1*1 1.380.928 1.079.172 2,994.644 1.936.300 1,161,660                               876.340 2,547.500           117.6                123.7
 7-P6        14.6           14.9   A0C 2      1.393.333 1,086.867 3.021.545 2.034.90o t.222.060                           921.920 2.680,000           112.7                118.6
 7-T7         4.4            4.0   AC F2        176.489       137.923      382.729         308.700         267.260        216.720   630.000 60.6                           99.2
 7-16         8.7       11.3       AC PSI      940.620        735.060 2.039.8051.150.600 684.000                          516.000 1.a00.00 136.0                       141.6
 7-P9        12.8           12.6   AC 1tl 1.223.418           956.082 2.653,0741.866.900 1.117,200                        642,600 2,450.000 103.3                      113.7
 7-110        6.5            6.5   AC    X11- 49.36 i         386.337 1.072.063            789.000         469.110        353.6n 1.026*750 104.2                       106.7
 7-Pl1        6.8           8.5    AC 12       754,259        589.441 1.635.66             924-000         554.610        416.390 1.216.250 134.5                          141.2
 ?-G1        10.3       10.1       AC 1rl      735.060        574.437 1.594,0321.177.344 698,820                          527.160 1.32.350 106.0                           10B.3
7-02          3.3            3.3   AC PI.      276.773        217.656      604.539         502.740         294,120        22.680        645.000        93.7                9.2
                       -.     -       1P2
7-03         12.1           12.1   ODST/AC16139.692 690.808 2.471.9421.588.650                             943.920        712.080 2.070.000           119.4                124.5
 7-G4         8.8       L2.7       AC/G2 1.084.489            647.511 2.351.795            997.500            592.6 00       7.2001,300.000 160.9                          18.6
 7-05         6.0           6.0    DBST/CC 331.359            258.951      718.576         478.800            289.560     216.4O        635.000 113.2                      120.1
                                                                            -14-
                                                                                                                                                        Table       2
                                                                                                                                                        P'e4       S of 4
                                                               PROJECTCcPULtZ10RI             t T

                                                           HICHIWAY
                                                                  PROJICT (LOAX/ 2392 - 10)

                                                   ActuCl and Forcams t3ettmatso of Protect                     Cost
                                               (Refers    to Ministry of Rom Affairs             Components only)
                                                                                                                                                             Unit *        '000
                                                         Actual cost                                  Forecast Gettmat, of cost Actu                         ost         of
                                                Local                     Total                         Local                        Total        Forecst
 ProJ*e;     enstn(Pf   jtna-
.3cofnent )rlpinalfinal ard/a
                                               Country        ForeL
                                               currenczy Uguiv.equive-
                                                                                  rn
                                                                                   -    Contract      Country              oreotjn USr            est
                                                                                                                                                    bos            Contract
                                                                                         eount        cur?eo y           U ulv. euive- of cost(7)                   aount
                                                                   lonc                                                          ltou
  7-46         8.6       8.6     AC/CC 1.04.410               816.190 2.264.681 1.530.000               907,440           684.560     1.990,000 113.6                   118.4
  I-GI         4.1       4.1     OMSt/CC 206,411              L62.669       451.954       151,750       209.760           158,240       460,000        96.3             102.8
 J-Al         10.9      14.9     AC P3         946.963        740,037 3.0$3.562 1.100.0001.133.730                        U5,.270    2."6,250          63.6             149.3
 7-R2         14.3      18.1     AC P2         969.624       757.746     2.102.702      1,146.000     1.255710            947.290 2,753.750            76.4             146.8
 Subtotal    t88.7     204.8                17.284.146      0,507.281    37,f61.96     24.765.284     5,997.060         U2,064.940 35,072.540         106.9             121.1
 s-Pn         10.7      I.5      AC P2 1.136.828             688.412 2.465.295          1,817.8881.096,680                627.320 2.405,000           102.5             106.5
 6-P3         20.6      21.1     AC P2       2,258.670     1.765.114     4.898.094      3.360.000    2,042.o60         1.541.1204,480.000             109.3             116.6
 1.P}I        11.6      13.6     AC P1e 1,204,898            941.608     2.612,911      1.550.000 935.370                 705.630    2.051.250        t27.8             134.6
 S-P4ICI       8.4       9.6     AC P2         606.242       473.768 1.314.680            816.000       676.300           511.700    1487.500          68.4             128.6
  I-PS        II.5      11.9     AC   r3     1.232,143       962,699     2.671.993      1.900,500    1.123.470            841.530    2.463.750        108.5             112.5
 6-PG         11.0      13.6     O3            955.692       746.656 2.072,468         1.202.250        719.340           542.660    1.577.500        131.4             137.9
 7-P3'        14.6      14.7     AC P'1 1.256.715            982.104     2.725,282     1*936.200     1,149.120           866.680  2.520.000 106.1                       112.6
 6-P9          6.5       6.5    AC/CC          509.608       398.406     1,105.556        609.000       564.670           426.130 1.23.8750 69.2                        145.2
 a-PlO        11.6      16.5    AC Pl.         722.241       564.419     1.566,233     1.062.000 1.019.160                768.840 2.235.000            70.1             116.0
 6.44                                 P2
 6-PI          9.7      10.0    AC P2          583.561       456.044 1.265,495            950.000      660.130           648.870      .6886,250       67.1              106.6
 6-P12         3.1       3.1    AC P2          168.667       147,613       409.617        291.000       234.270           176,730      513.750         79.7             112.6
6I2            3.4       3.4    OMSS           271.295       212.012       588,323       400.000       234,840            177.160      515.000 114.2                117.7
 6-3           4.9       4.9    OIST/CC        353.582       276.316       766.768        449.700       269.610          203.390       591,250       129.7              136.4
6-CS         12.1      12.8     DIST/CC        907.928       709.532     1,968.911     1.435.350       862,410           650,590     1,891.250       104.1          109.7
8-G6           5.7      6.5     AC P2          45S.351       35S.849       987.462       649.000        S47.770          413.230 1,201,2S0            82.2          121.7
6-Al          S.0       S.0     AC P2          366.605       286,495       795.009       653.100       400.140           301,860       677.S00        90.6              97.4
G-42          6.6      12.2     AC1C2          876.853       685.247     1.901.522        779,100 462,270                        1.013.750
                                                                                                                           846.730                   187.6          195.3
6-A3          4.6       4.6     AC P2          475,446       371.554    1.031.041        829.000       475.380           356.620     1.042.0S0        98.9                     S.5
8-A4          3.9       3.6     AC/02          234.606       183.342       S0M,764       439.950       267.330           201,670        $86,250 86.8                    92.5
6-AS          5.8       5.6     AC Pat         268.5U       209.897        582.453       559.650       510,720           385.260 I,12,O000            52.0              83.3
8-46          2.3       2.4     AC t1l         276,696       316.392       600,475       493.290       299.2S0           225,750       656,250        91.5              97.4
8-06/A        2.2       2.2     AC/CC         205.110        160.290       444,796       365.400         n.800            60.200       175,000 254.2                    97.4
Subtotal 177.8        195.4                15.347.94911.994.173         3623.16822.550.378            .633.1105t,1869890             32.520,750      102.3          118.1

9 t2         14.1      16.7     AC r2       IA0,632         789.165     2.189.897 1.450,000 860.700                      649.300     1,687.500       116.0          120.8
9-CI          7.9       8.2     AC P1,        531.954       415.714 1.153.582            790.000       46 ,50            353,40 1,027,500            112.3          116.8
                                  P2
9-Al          3.6       4.1     AC t l        270.134       211,106       385.806        382.000       231.420           174,580       507,500       115.4          122.7
9-A           2.0       2.9     AC "l         207,693       162.307       450,396        194.000       136,3             102.770       298.750       150.6          165.7
9-AS          1.4       1.4     AC Pa1        103.321        80.744       224,060        200,000       124.260            93.740       272,500        62.2              69.6
9-A4          1.0       2.3     AC Pat        196,332       154.993       430.097        131,250        81.310            61,490       176,750       240.6          262.2
Subtotal     30.2      36.2                 2,321.261     1.814,032     5,033.U83      3,147,250     1.902.60      1.435.340 4.172.500               120.6          127.9
 Total      1.153.2   1.286.7                            75.216.720                 033.769,187                        67,365.090                    t06.6          124.8
                                           96.248.595                  208.722,234                  69,297.910                      195.626,750
                                                                                  -15-
                                                                                                                                                 Table     2
                                                                                                                                                 P..      5 Of 5

                                                                            COLET ION REPORT
                                                                      PROJECT

                                                                      PROJECT
                                                                HIGHWAY      (LOAN/ 2392 - KO)

                                                        Actual     and Forecast      Eatiates of Prolect Cost
                                                    (Retfr     too Iinistry   of Hos Affaigs       Components only)
                                                                                                                                                   Unit        U '000
                                                           Actu4l cost                                        forecast ett_te           Actual cost as a
                                                                                                                                   of coot
                                                     Locel               TotaL                                 Local                TotalForecast
     PrfoecC           Lenaet(Kz,        Stand-     Countly      Foroten   Us$               Contract         Country    FoEi&n    UUF esttea_e     Contract
   :oaponent       OrIginal Final        ard/&      currtenczy Y,lv.     equive-              amunt           currency   Maultv. equiva- of cost(S)  mount
                                                                          lent                                                    lent

       1987 -   1989
       1-gt-A           3.9     3.9      AC 13       "3. 226       346.374        961.168      789.600         472.615   356.685 1.036.675 92.7                99.4
       2-Cl-A           1.9     1.9      AC P2        86.333        67.467        167.218      t5'3°00          92.112    69,411      202.000   92.6           97.4
       3-Pt-A          9.6      9.6      AC P2       111.351        92.469        256.652      210.840         126.235    95.245      276.675   97.4           92.7
       4-ES-A          s.9      4.9      AC 12       599.6U7       468.778 1.300.634 1.068.635                 639.662   4*2.716 1.403.250      92.7           97.4
       1-E5-A          9.4      9.4      AC Pa1      322.540       252.060   699.452    536. 00                321.252   242.346 704500         97.4           92.7
       6-E2-A          1.8      1.6      AC Pol       61.269        47.661        132.647       05.500          31164     3J 614      112.250   99.3           104.3
       1-3-A             o
                       4.6               AC P2        54.769        42.o01        116.771       97.S570 3.425             44.075      126.125   112.4          124.3
       1-6-A           3.4      3.6      AC Pt       35.195         27.505         76.324       62.700          37.36     26.337       82.375   92.7           94.1
       Total           39.5    39.9                1.721.5401.345.3353.733.266 30015                     1     7n9490 1.357.510 3.944250        94.4           99.4

                                                           76.562.07S                                        91.097.400         199.775.000
    Trtal         t 1!92.7    !.326.6             97.970132.55                              36.774.332                4.722.600                 106.3       2X4.3




KEY:
Road Standard:
AC - Asphalt Concrete                     surfacing.
CC - Cement Concrete                     surfacing.
DBST- Double Bituminous Surface Treatment surfacing.
P1, P2, P3, G2 - Design Standard (see SAR Talle 5.2,                                                         page 57).




                                        -~~~~~~



       llete
                I/ Ul1 costs are to Woewcm              y exzePt cOl          unfr     US$ equivalent.
                21 achee      rate of U(1l00           for taoectac Of coste VW IIUI_1121.50 for actul                     costs.
       Source: Coneultata        Fimal RIPOvte( Augut 1934. Decetr                   1965. Ju      199).
                                                             -16-
                                                                                                                   TABLE 3
                                                                                                                   Page 3 of I
                                                    PROJECT COMP£TION REPORT
                                              HIGHWAY PRojECT rLOAN t2392 - KO)

                                                Actual     and Forecast    Traffic,       1985




                                  Base year         1987                                         Latest    year       1989
          Vehicle   tvpe I   Vehicle    tpe     2          'oral          Vehicle      type I    Vehicle    tyve   2         Total
Section   Actual Forecast    Actual    Forecast     Actual    Forecast    Actual      Forecast   Actual    Forecast      Actual   Foreceast

 1985 - 1987
 I-PI       406      388      136       130           542   518
 I-P3       421      410      227       220           648   630
 I-P4/P9    294      340      196       227           490   567
 I-PS       238      1a8      102        78           340   259
 I-P6       562      554      140       139           702   693
 I-P8       486      437      162       146           648   583
 I-PIO/G5 360        253       90        88           450   441
 I-P12      230      151      154       101           384   252
 1-P13      272      265      182       176           454   441
 1-GI       332      312      272       255           604   567
 I-G3       499      454      125       113           624   567
 !-G6       291      243      125       104           416   347
 I-G7       188      139      126        93           314   232
 I-Al       966      889      454       418         1.420 1.307
 I-A2       922      891      308       297         1.230 1.188
 1-A3       320      308      144       139           464   447
 1-A4       994      976      406       398         1,400 1.374
 I-A5       420      408      180       175           600   583
 I-P6/A     434      360      108        90           542   450
 I-P7/A     172      140       74        60           246   200
2-P1        339      369      183       198           522   567
2-P2        168      176      112       118           280   294
2-P3        241     217        43        38           284   255
2-P4        413      378      413       378           826   756
2-PS        210     208       140       139           350   347
2-P6        221      205      119       110           340   315
2-p7        299     252       299       252           598   504
2-P8        169      146       73        62           242   208
2-C1        276      246      149       132           425   378
2-G3        156      135       84        73           240   208
2-C6        174       77       44        19           218    96
2-C7       471      434       157       144           628   578
2-Al        267     262       193       189           460   551
2-A2        228     214       152       142           380   356
3-P1        186      168      t00        91           286   259
3-P2        228     226       532       527           760   753
3-P3       276      246       149       132           425   378
3-P5/C4    347      340       115       113          462   453
3-P6       411      403       103       101           514   504
3-P7        383     369       206       198           589   567
3-G1       450      403       112       101           562   504
3-G2        165      131       55        43           220   174
3-C3        143     411        Z         19           168   130
3-G5        290     227       124        97           414   324
3-Al       249      239       123       117           372   356
3-A2       211       197      113       106           324   303
3-P4/4-P2 386       365       128       121           514  486
4-P3       355      328       191       176           546   504
4-PS       264      246       142       132           406   378
4-P7       297      277       243       227           540   504
4-P8       281      265       187       176          468    441
4-Cl       247       194      165       130           412   324
4-G2        191      113      127        76           318   189
4-G3        245      154      105        66           350   220
4-Al        280     248        88        78           368   326
4-A2        296      283      139       133           435   416
                                                                -17-
                                                                                                                        TABLE 3
                                                                                                                        Page 3 of 2

                                                      PROJECT COMPLETIONREPORT
                                                HIGHWAN dRLjECT kLd)A        2392 - KO)

                                                   Actual   and Forecast    TrafEic,       1985




                                      Base year 1987                                                  L         ye      1989
            Vehicle    type I    Vehicle    type 2          Total          Vehicle      type      I   Vehicle    type    2      Total
Sect ion    Actual    Forecast   Actual    Forecasc    Actual   Forecast   Actual      Forecast       Actual    Forecast     Actual   Forecast


 5-PI         374      337        202       181         576         518
 S-P2        232      189         154       126         386         315
 5-P4        276      227         184       151         460         378
 5-PS         293     263         157       142         450         405
5-P6         303      263         163       142         466         405
5-P7         256      202          64         50        320         252
5-P8         299      287         161       154         460         441
5-GI          324     302         216       202         540         504
5-C2         233       174          77        58        310         232
5-G3          150      113        100         76        250         189
5-C4          192      139         48         35        240         114
5-GS          176      151         44         38        220         189
5-=6          196      133         84         57        280         190
5-Al          189      167         93         82        282         249
S-A2         462      405         218       191         680         596
5-A3         345      295         203       174         548         469
6-PI         322      273         138       117         460         390
6-P2         401      389         133       129         534         518
6-P3         315      284         105         94        420         378
6-P4         288      259           72        65        360         324
6-PS          143     124          77        66         220         190
6-P6/5-P3     189     151         126       101         315         252
6-P7         253      221         109        94         362         315
6-P8         212      179          70        59         282         238
6-P9         411      378         137       126         548         504
6-PIO        188      164         101        88         289         252
6-Pit        375      353         161       151         536         504
6-Cl         273      156          48        28         321         184
6-G2         271      265         181       176         452         441
6-G3         I55      131          83         71        238         202
6-G4         279      221         119        94         398         315
6-CS          176     132          76         S7        252         189
6-G6         234      142          78        47         312         189
6-G7         173      155         115       104         288         259
6-G8           97       53         65        35         162          88
6-A2         355      302         125       106         480         408
6-AJ         287      210         191       140         478         350
6-A4         192      143          94         71        286         214
7-PI         194      159         104        86         298         245
7-P2         333      292         143       125         476         417
7-P4         274      265         118       113         392         378
7-PS         139      109          59        46         198         155
7-P6         269      227         115        97         384         324
7-P7         436      414         109       to%         545         518
7-P81        209      189         112       101         321         290
7-P9         207      176          88        76         295         252
7-P1O        157      136         105        91         262         227
7-PI1        241      221         161       147         402         368
7-GC         232      218          77        72         309         290
7-G2         182      157         122       105         304         262
7-G3         170      147          42        37         212         184
7-G4         235      218          78         72        313         290
7-GS         272      179          90        59         362         238
7-G6         144      114          36        29         180         143
7-G7         150      118          38        29         188         147
7-Al         555      525         185       175         740         700
7-A2         319      292         241       221         ShO         513
                                                                           -18-
                                                                                                                                 TABLE 3
                                                                                                                                 PapO 3 of 3

                                                                PROJECT COMPLETIONREPORT
                                                          HIGHWA PRUJECT (LOAN / 2392 - KO)

                                                              Actual   and Forecast       Traffic. 1985




                                                ease    year 1987                                              Latest    year 1969
                                                                                                                                  2
                  Vehicle       tvpe   l   Vehicle     tvpe 2          Total             Vehicle    type   I   Vehicle    tYPe            Total
    ie~t ton      Accual       Forecast    Actual Forecast       Actual    Forecast      Actual    Forecast    Actual    Forecast     Actual      Forecast

   8-PI           385           379         207        204         592         583
   8-P2           200          -189         134        126         334         315
   S-P3           274           265         118        113         392         378
   8-P4/IC        452           544         194        233         646         77
   8-PS           481           478         160        159         641         637
   8-P6           257           243         211        198         468         441
   8-P7/7-P3      264           227         176        151         440         378
   8-P9           371           363         159        155         530         518
   8-P10/8-C4     285           260          95          87        380         347
   8-P11          269           265         115        113         384         378
   8-P12          379           363         163        155         542         518
   8-G2           295           252          74          63        369         315
   8-G3           437           414         109        104         546         518
   8-CS           260           221         112         94         372         315
   8-G6           197           184          65         61         262         245
    a-Al          493           458         147        137         640         595
   8-A2*          288           234          72          58        360         292
   8-A3           282           249         134        118         416         367
   8-A4           369           329         151        .134        520         463
   8-A5           340           310         120        109         460         419
   8-A6             385         350          85          77        470         427
   8-G6/A         182           150          61          50        243         200
   9-PI/P2        298          292          100         97         398         389
   9-C1           279          236           93          79        372         315
   9-Al*          218           189         194        167         412         356
   9-A2*          279          250          171        154         450         404
   9-A3           246           190         202        155         448         345
   9-A4           218           179         202        166         420         345

   1967 - 1989
   3-A3                                                                                   368       300         245       200            613    S00
   6-Al                                                                                   312       238         134       102            446    340
    I-El-A                                                                                701       601         467       401         1,166  1.002
   2-El-A                                                                                 210       180         140       120            350    300
   3-P7-A                                                                                 430       293         232       157            662    450
   4-ES-A                                                                                 478       410         237       220            735    630
   7-E5-A                                                                                 251       224         333       296            564    S20
   8-E2-A                                                                                 209       183          90        78            299    261
   1-3-A                                                                                  687       524         370       282         1.057     806
   1-6-A                                                                                  211       161         140       107            351    268



KEY:
Vehicle        Type 1 - -. ;enger                 Cars and Light               Trucks.
Vehiclei       Type 2      -    Buses      and Heavy Trucks.
                                                         -P-         VA¶MALOUIAO
                                                               >~~~~~I AOPS'At       DII




                                     CI      -          X_
                         ~~~~~~~~~~~~~~~..
                              ,_-1                               M454Y;t
                                                                     -*~5j-Th   W   >'v




A~~~~~~~~~~~~~~~~~-~cr




                            RODDEV
                          AND
                          LCOUNTY
                         PROViNCIA    LOAN NO 2392-KO
                                -20-

                        PROJECT       REPORT
                              CO0PLETICI

                              ?ROJECTf
                        HICHWAY     23924-KO)
  B.   PROVINCIAL AND NATIONALROADI MeROVEMENT MINISTRY OF CONSTRUCTION
                                             BY



1. INTRODUCTION

            originally
   Theproject       consisted twenty
                           of      construction
                                            sections(lots
                                                      as are

        ealled)with
 comsonly             length 385Km.
                a total    of

   Later 1986, morelots
       in    six              to
                      wereadded the      bringing total
                                   project      the

      of    to      a    length 445.7
 number lots 26 with total    of    Km.

       the      9          length 114.4 included
   Among 26 lots, lots,total    of    Km.             and
                                               widening

            existing lane
 reconstruction   two   paved
                            roads four
                                to      highways
                                     lane         the others
                                              while

       improving paving existinig roads to standard lane
 involved      and    the     gravel             two

      road.
 paving

   Thework    were
          sites  widely
                      spread
                           over country
                               the    located most provinces,
                                            in    of

 andthe        were
       workareas       the        of the     Constructio..
                   under jurisdiction Regional        tffice

     of
 (RCO) MOC.


2.M.O.C(B.P.R)

        the        the     of     roads(B.P.R) responsible
   Within government, bureLu public        was          for

        matters
 budgetary           the     or        of    for     of
              including supply allocationfunds payments

 works well technical
     as    as      matters
                         involving       changes project
                                substantial    on      design

        its     was
 forwhich approval solicited, theregional
                           while       construction
                                                office(RCO)

 was in charge thesupervision
             of                  and
                           ofworks thepayment work thecontractors.
                                            of    to
                           -21-


               field,       under director
   In construction supervisor   the           of
                                        general theRCOwere

       in   sub-project
 charged each        including
                            technical
                                   matters      design
                                         involving   modifications,

            matters, acquisition, allkinds civil
 administration    land       and        of          as
                                               affairs wellso

 that   had
     they to paysoaewhat
                      limited
                            attention solve
                                   to     technical    in
                                                 matters

 detail.

   'n this     the       was
         regard, consultants very      and
                                 helpful hadgood         to
                                                opportunityoffer

                to    at   stage thesupervision,
        assistanceRCOs every
 technical                     of                   their
                                             although

 recoumendations,(aore or reasonable
                 advance               they
                                  methed         were
                                           thougut) notaccepted

       of      regulation economic
 because account       and             occasionally.
                                reasons,

            future, governmentgoing consider allresponsibilties
   In thenear     the       is    to      that

              portion project consultant's
 fora particular    or      (the              engineer
                                       resident     replace

         and - irectly
 the RCO's                   for          ofworks)would given
                     responsible supervision          be    to

             after      or      present
 theconsultants reforming revising        and
                                      rules regulations.

   In such    consultants have
          case,       could            to      new      methed
                              enforcementexecute technical

     their risk.
 under   own


3. CONSULTANTS
           TEAM

               field     were     with        divided
   Theconsultants' services rendered theproject     into

     workareas
 three       with      at     Cheonan Eagu.
                 offices Seoul,     and

       of       was      of     or
   Each theoffice consisted three four       and
                                      engineers laboratory

          respectively.
 technicians,

      were
   They          to
          assigned eacl. areas responsible three four
                      work   and        for    or    lots

 at thesametise.
                           -22-


      of
  Some them good
          had   experiencecorns1i. highwals other
                        in      tion      from  project
                                                      or

overseas that
      so        could
             they   introduce r.conriend construction
                           and       new          methods
                                                        relatively,

suchas;

o Themethod asphalt coarse
          of      base   placement itscompaction, theplacing
                                and            i.e,        of

 asphalt coarse(originally
       base           twolayer 5cmandcompacted layer using
                             of             each   by

 in sequence macadam
          of             tire
                   roller, roller tandam
                                and    roller) changed
                                             was     into

 onelayer  and
        10ca compacted using
                    by     onlytire    in
                                  roller a proper
                                                method.

o Placement 15cm
         of     lean
                   concrete inconcrete
                         slab             without
                                    pavement    expansion
                                                       joint

 through whole
       the   length.

o Thedesign of asphalt
          mix        concrete wearing
                            for     coarse   the
                                         with proportionnatural
                                                      of

 sandlimited so asphalt
           10%,             was
                      content reduced around
                                    to     6.0%   around6.3%
                                               from

 in thepast.

o Must used
      be   crushing
                 material subbase
                       for      coarse heavy
                                     on    traffic
                                                 sections.

o Must used
      be  crushing
                materia-
                       riverbed quarry
                              or     rock)for
                                           concrete
                                                 pavemtnt,
                                                        etc.

  Among above, recomendations accepted M.O.C adopted
      the    some         were      by     and     as

standard specification
       in          of roadconstruction
                                   project 1988
                                         from through trial
                                                    the

implementation
           of pavement.

 On theother
           hand,
               despite those
                     of    wonderful
                                  achievements, very
                                            itwas   difficult

to keep withqualified
      up           engineers, they
                           since werehired theconsultants
                                         by           temporarily.

 They hadto movc another before endof this
                       jobs   the        period
                                              whenever
                                                     better

chances offered them.
      were    to
                                -23-



4. CONTRACTORS

    Mostof construction theirfieldstaffs
                     and                                     in
                                       had alsogoodexperiences road

            project
 construction                 from10 yearsto a couple years.
                  froroverseas,                     of     however,

            experiences not fullydemonstrated soaecasesunfortunately.
 those useful        were                  in

             mainly
   The reasons    mightbe:

                 of           cost     domestic overseas
   o The difference construction between      and      (domestic

     costs             overseas sone lots.)
          were farbehind      in

                 of          and        aspects(when
   o The difference supervising financial                  reduced
                                                  contractors

                                  contract
     theircostby using othermethod,           would be reduced some
                                         amount              in

     cases.)

              it         thatcontractors achived qua.ity
     Cenerally, is thought            had      in      control

     and donea significant         compare previous
                         improvement     to       loanproject.

S. THE BANK

    During             project, Bankestablished
          theimplementing     the                    and
                                             effective goodrelations

                and    in      bothfinancial technical
 with theBorrower helped solving           and              that
                                                     problems

                    for        and         the      havealways
 emerged. Arrangements preparing implementing project        been

       in         and      nanner,
 agreed a realistic flexible             boththeBank,consultants
                                 involving

 and B.P.R(M.O.C).

            encouragesent agreement usedomestic
    TheBank's          and        to                  firms gave
                                              consulting

               to             of             consulting
 moreopportunity the development an engineering              in
                                                      capacity Korea.
                                       -24-
                                                                         I
                                                                     TABLE
                                   COMPLETION
                              PROJECT     REPORT                    PACE OF 2
                                                                       I
                                   PROJECT(2392-KO)
                              HICHWAY
                                             IMPLEMENTATION
                                       PROJECT
                          ACTUAL EXPECTED
                               PND


                                             of
                                         Dates
Project                                                    of
                                                     Percent
                 Bid                        Completion works
                           Contract Beginning        the
        Contractor receipt award ofwork of work completed
                                 *                          by
Component                                            expected
                 Actual,' Actual-' Actual/ Actual/ completion
                                                     date.
                  Expected Expected Expected Expected

  2       SHIP                     '84.3.309
                           '83.12.28;
                   '83.11.28.-
             Bl'ILDINC                      '87.6.309               100
          CORP                     '84.3.15 '87.6.30
                           '83.12.12
                   '83.11.15
  4    DONCSAN                   '84.3.309
                         '83.12.28/
                 '83.11.28.
            CONST.                        '86.8.14/                 95
        CO.                      '84.3.15 '87.6.30
                         '83.12.12
                 '83.11.15
4-2           CONST.
          LOTTE     '86.4.5--'86.5.1,''86.5.7' '87.12.28/ lee
          CO.       '86.3.25 '86.4.15''86.4.25 '87.12.39
 33       NAMKWANC '86.4.5,- '86.5.2/ '86.5.7' '87.12.29/ 190
               CO. '86.3.25 '86.4.20 '86.4.25 '87.12.38
          CONST.
 34       NANYANC                 '86.5.2.'        '87.9.28/        199
                ENT.
          JINHUNG                 '86.4.28         '87.19.31
34-2                                              '87.12.21/ 199
                                          '86.12.22'
                          '86.12/ '86.12.18/
                                                  '87.12.21
                                          '86.12.10
                                  '86.11.28
                          '86.11.15
 35            DEVEL.
           HANIL                     '84.3.30/
                             '83.12.28/
                     '83.11.28-'              '87.6.39'             l9
           CO.                       '84.3.10 '87.6.38
                             '83.12.12
                     '83.11.15
 36                               '84.7.109
                          '84.6.15.'               '87.6.316
                                           '84.7.11/                199
                          '846.5  '84.6.39 '84.7.2 '87.6.38
 19                                  '84.3.3' '87.11.30' 199
                             '83.12.28/
               DREDC-'83.11.28
           KOREA
           INGCO.                    '84.2.25 '87.11.38
                             '83.12.12
                     '83.12.12
 11             CONST.
          MIRINCG                 '83.12.28n       '87.6.38/        199
          CO.             j       '83.12,12        *87.6.30
 12                                          '86.12.23/ 199
                                     '84.7.13'
                             '84.7.10/
                CONST.'84.6.15,'
           KUKDONC
           CO       '84.6.5 '84.6.30 '84.7.4 '87.6.30
12-2         n86.4.15.'           '86.5.2' '86.5.7/ '87.1.23/       199
                          '86.4.1 '86.4.15 '86.4.26 '87.6.31
 14        Jl'NCWOO                       '84.3.36/
                                  '83.12.28/
                          '83.11.29.               '86.12.31' 100
                CO.
           DEVEL.                         '84.3.18 '87.6.39
                                  '83.12.12
                          '83.11.15
 15        DUCKSOO                        '84,3.30/
                                  '83.12.28/
                          '83.11.29.-              '86.12.31/ 109
                CO.
           DEVEL.                         '84.3.19 '87.12.31
                                  '83.12.12
                          '83.11.15
 16        KEARCNAR                                   7.31'
                                           84.3.30 '87.
                                  '83.12.28.'
                          '83.11.29                                 100
              LTD.
           ENT.                           '84.3.10 '87.12.31
                                  '83.12.12
                          '83.11.15

       J                  .       I.                           --            I
                               -25-
                                                               1
                                                           TABLE
                         PROJECT     REPORT
                              COMPLETION                  PACE OF2
                                                             2
                              PROJECT(2392-KO)
                         HICHWAY
                          AND     PROJECT
                     ACTUAL EXPECTED   IMPLEMENTATION


                                     of
                                 Dates
Project                                             Percentof
                 Bid                       Completion works
                          Contract Beginning         the
        Contractor receipt award ofwork ofwork completed    by
Component                                           expected
                 Actual/ Actual/ Actual/ Actual/ completion
                                                     date.
                  Expected Expected Expected Expected

  17          CONST.
          LOTTE             '83.12.28/
                    '83.11.27?'     '84.3.308'87.6.30/    180
          CO.               '83.12.12
                    *83.11.15       '84.3.10 '87.6.38

  18          DEVEL.'83.11.27
          LUCKY             '83.12.28/
                                    '84.3.38/'87.12.31/   84
          CO.               '83.12.12
                    '83.11.15       '84.3.10 '87.6.30

  19           IND. '83.11.27,
          DAELIM                    '84.3.38'
                            '83.12.28'       '87.6.38/    188
          CO.       '83.11.15       '84.3.18 '87.6.30
                            '83.12.12

  28           CONST.'83.11.27,'
          WOOSL'NC                 '84.3.30/
                           '83.12.28'       '87.6.36/     16
          CO.                      '84.3.10 '87.6.38
                   '83M.15 '83.12.12

  37           CONST.'83.11.27,
          PACIFIC                  '84.3.38'
                           '83.12.28'       '86.12.26'    188
          CO.      '83.11.15       '84.3.10 '87.6.38
                           '83.12.12

 38            CORP.'83.11.2'.
          DAEWOO                    '84.3.308
                            '83.12.28/       '87.10.18/   188
                    '83.11.15
                            '83.12.12
                                    '84.3.18 '87.10.18

 21             CORP.
          SANHWAN           '33.12.28'
                    '83.11.2.'      '84.3.308'87.6.29/    168
                    '83.11.15       '84.3.14 '87.6.30
                            '83.12.12

 22            CONST.
          SAMBDO            '83.12.28'
                    '83.11.27.      '84.3.30/'87.6.38'    188
          CO.               '83.12.12
                    '83.11.15       '84.3.18 '87.6.38

 23       CHINHUNG   '83.1. '83.12.28'84.3.36/'87.6.38'   188
             INC.
          INT.               '&3.12.12
                     '83.11.15       '84.3.10 '87.6.30

 39            CONST.
          DONCAH            '83.12.28/
                    '83.1:.27/      '84.3.36/'87.12.28/   188
             CO.
          IND.      '83.11.15       '84.3.18 '87.12.31
                            '83.12.12

 39-2 POONCLIM          4.15.' 5. 7. '86.5. '87.12.27'
                     '86.    '86.         7/              188
      IND.
         CO.                    4.
                     '86. 1 '86. 6 '86.4.25 '87.12.31
                        4.
                                                                                                                    2
                                                                                                                Table
                                               PROJECT         REPORT
                                                      COMPLETION
                                                                                                               Page Of 4
                                                                                                                  1
                                                                -
                                                    PROJECT 2392 KO )
                                              HICHWAY      (

                                          AND                     COST
                                                  ESTIMATES PROJECT
                                     ACTUAL FORECAST     OF
                                                                           only)
                                                                  Components
                                  (Refersto Ministryof Construction
                                               COST
                                          ACTUAL                                                     COSTAS
                                                                                  ESTIMATE COST ACTUAL
                                                                           FORECAST      OF
               (KM)
          LENCTH                                                CONTRACT                                  OF
                                                                                                A PROPORTION
                         TYPE WORK LOCAL
                            OF             FOREICH TOTAL AMOUNT LOCAL FOREICN TOTAL FOkECAST    ESTIIRTED
       ORICI-
COMPONENT   FINAL                          US l6001USst'00                                      CONTRACT
                                                                          USt'001 USS6SS0ESTIMATE
       NAL                          CURRENCY       EQUIVA- USS'066 CURRENCY                     AMOUNT(%)
                                                                                         OFCOST(O)
                                                                                 EQUIVALENT
                                                   LENT

 2        24.3 24.3                   7,691    4,576   11,667 16,633       5,613   4,228       9,841    118.6      108.2

          (5.6)             A.P
          (7.5)             A.P
         (11.2)             A.P
  4       15.9 16.3         A.P       2,608    1,945   4,553     4,263
                                                                           5,544   4,448       9,984    98.5       93.8
 4- 2     14.4 14.4         A.P       3,062    2,218   5,281     7,862
 II       23.6 22.9         A.P       5,263    2,424   7,687     5,313     4,589   5,299   .   9,888    77.7        45.7

 11       21.1    20.0      A.P       7,757    3,880   11,637    8,533     6,213   7,196       13,409   86.8        53.9

 12       15.3    15.9      A.P       4,611    2,554   7,165     5,598
                                                                           2,963   3,144       6,117    117.3       98.8
12 - 2     5.1    5.1       A.P        898       552    1,456    1,209

 14       25.2    27.8                6,330    4,821   11,150 16,563       5,868   4,864       16,724   184.0       99.1

         (24.8)             A.P
         (6.4)              A.P
                                                                                                              2
                                                                                                          Table
                                                   COMPLETION
                                             PROJECT       REPORT
                                                                                                          Page Of 4
                                                                                                             2
                                                             -
                                                  PROJECT 2392 KO )
                                            HICIWAY     (
                                   ACTUAL FORECAST
                                        AND             OF
                                                 ESTIMNTES PROJECT
                                                                 COST
                                                                Components
                                (Refersto Ministryof Construction        only)

                                             COST
                                        ACTUAL                           FORECAST     OF          COSTAS
                                                                               ESTIN^TE COST ACTUAL
         LENCTR
             (KN)                                             CONTRACT                                 OF
                                                                                             A PROPORTION
PROJECT
                          OF
                       TYPE WORK LOCAL    FOREICN TOTAL ANOUNT LOCAL FOREICN TOTAL FORECAST    ESTIMATED
COMPONENT
       ORIGI-
            FINAL                         USI'll6 US 1666                                      CONTRACT
                                                                         US$'III USI'l30ESTIMRTE
       NAL                         CURRENCY       EOUIVA- USS'SSS CURRENCY              OFCOST(%)
                                                                                EQUIVALENT     AMOUNT(%)
                                                  LENT

  15     8.3     4.9     A.P        5,883    3,831   9,714     8,397     1,796   1,461   3,257    290.2      261

  16    28.8 28.8        A.P        7,438    4.614   12,152 10,112       5,166   3,553   8,719    138.2      136

 17     14.2 14.9                   4,374    2,795   7,169     6,125     3,246   2,367   5,547    129.2? 1?1
        (9.6)            A.P
        (4.6)            A.P
 Is     15.6 16.2        A.P        3,572    2,339   5,866     5,127     3,469   2,591   5,999    97.8        49.1

 19     14.6    16.2     A.P        7,162    4,793   13.955   16,584     2,525   1,879   41,404   271.4      255.1

 21     15.5    17.8                4,321    3,695   7,416     6,784     3,376   2,422   5,798    127.9      127.8
       (14.2)            A.P
        (1.3)            fl.P
 21     35.1    35.6     A.P        8,851    5,969   14,826   13,683     7,736   5,985   13,721   168.6      99.7
                                                                                                               Table2
                                                PROJECT         REPORT
                                                       COMPLETION
                                                                                                                 3
                                                                                                             Page Of 4
                                               HICHWAY       (    -
                                                      PROJECT 2392 KO )

                                                       ESTIMATES PROJECT
                                      ACTUALAND FORECAST       OF       COST

                                                                   Components
                                   (Refersto Ministryof Construction        only)

                                          ACTUALCOST                               ESTIMATE COST
                                                                            FORECAST      OF          ACTUALCOST AS
          LENCTH
               (KM)                                              CONTRACT                             A PROPORTIONOF
PROJECT                  *
                         TYPE WORK
                             OF      LOCAL    FOREICN TOTAL     AMOUNT   LOCAL FOREICN TOTAL FORECASTESTIMRTED
        ORICI-FINAL
COMPONENT                                     US t'600 US $,leo                  USt'l06  USt 000 ESTIMATECONTRACT
        HAL                          CURRENCY          EQUIVA--US 5l006 CURRENCY                  OF      AMOUNT(%)
                                                                                         EOUIVALENT COST(%)
                                                       LENT
  22      26.4    27.7                5,191     3,486   8,671     7,627     3,715    2,796   6,511     133.2      124.4
         (16.t)              A.P
          (4.4)              A.P
  23      27.8    28.0                6,798     4,803   11,601   10,527     6,655    4,937   11,592    106.1       97.3
         (13.1)              A.P
         (14.7)              A.P
  33      8.8     11.2                4,346     2,282   6,628     5,602     6,119    3,563   9,682      68.5       64.1
          (3.4)              A.W
          (5.4)              A.W
  34      6.4     6.3        A.W      1,891     1,024   2,915     2,245     2,565    1,929   4,494      64.9       53.1
 34 -2    1.9     2.0        A.W      1,632     1,369   3,601     3,061      -        -        -         -

  35      20.3    20.3                12,206    4,998   17,204   10,953     11,785   8,632   26,417     84.3       57.9
         (14.7)AW
         (5.6)               ry.
                                                             REPORT
                                                     COMPLETION
                                               PROJECT
                                                                                                          Page Of 4
                                                                                                             4
                                              HICHWAYPROJECT 2392- KO
                                                            (

                                     ACTUAL                          COST
                                                     ESTIMATES PROJECT
                                          AND FORECAST      OF
                                                                           only)
                                                                  Components
                                  (Refersto Ministryof Construction

                                               COST
                                          ACTUAL                                                      COSTAS
                                                                                   ESTIMATE COST ACTUAL
                                                                            FORECAST      OF
           LENCTH
                (KM)                                             CONTRACT                                  OF
                                                                                                 A PROPORTION
PROJECT                                                ____

                          TYPE WORK LOCAL
                             OF             FOREICN TOTAL AMOUNT LOCAL FOREICN TOTAL FORECAST    ESTI1ATED
       ORICI-
COMPONENT   FINAL                           USt'000 USS'060                                      CONTRACT
                                                                           US$'166 US1'666ESTIMATE
       NAL                           CURRENCY       LEUIVA- US 6'060CURRENCY                     AMOUNT(%)
                                                                                          OFCOST(%)
                                                                                  EQUIVALENT
                                                    LENT

 36       11.3     11.2               9,394    5,681    15,075 12,450       6,866    4,945   11,811   127.6   114.8
          (3.5)             A.W
          (7.8)             C.W
 37       11.3     11.3     A.W       8,279    4,759    13,638 10,436       5,884    4,152   10,036   129.9   114.6

 38       21.2     21.2              15.719 10,063 25,782 22,851 11,158              8,471   19,629   131.3   118.8
          (9.7)             A.W
          (14.5)            A.W
 39       16.6     16.1     A.W      15,061    6,861    21,922 15,838
                                                                            12,646   9,692   21,138   158.2   66.6
 39 - 2    9.9     9.9      C.W       7,196    4,325    11,521    9,486


cRAID 431.3 445.7                    16G.889 100,050 266,939 219,277 124,823 97,885 222,718           119.9   182.2
  TOTAL
       (385)


      *   See KEY on nextpage.
                                                   -30-




 KEY TO LO NUNBERS:
                  -

       XQQ       ~LotNo. From-ToBS                               Lot No. From-To
             ( 2          Haehwa-Suweon              (            15     Daecheon-Dohwa
             ( 4          Icheon-YeoJu               (            16     Seognam-Onyang
             ( 4-2        Yeoju-Dogye                (            17     Onyang-Pyeongtaeg
 Seoul (          33      Incheon-Nongog       Daejeon(           18     Siryangri-Yesan
             (    34      Nongog-Suweon              (            19     Cheonan-Byeongcheon
             (    34-2    Guundong-Suweon            (            20     Eunseong-Saenggeug
             (    35      Donong-Dabnaeri            (            37     Onyang-Cheonan
             (    36      Dabnaeri-Cheongpyeong      (            38     Cheongju-Doan

             (    10      Tongri-Aneuiri                     (    21     Goryeong-Seongju
             (    11      Aneuiri-Samcheog                   (    22     Geumcheon-Gyeongsan
 Weonju (         12      Munmag-Weonju                Busan (    23     Cheongsong-Yeongyang
             (    12-2    Dogye-Munmag                       (    39     Daegu-Hayang
             (    14      Sinnam-Yanggu                      (    39-2   Hayang-Yeongcheon


Note


         Exehangerates are variws depend on the date of disbursement.
                                                                             Contract aiount
         Actual cost as a prepwtlon of estimated contract amount =
         A
                                                                         Estimated contract amount
       * Type of    work : A.P -     Asphalt Paving (2 lane)

                            A.M -    Asphalt Widening (4 laae)

                            C.W -    Concrete Widening(4 lane)

                            sector project
         Source : IDRDHUghway

                     Supervision of construction

                          Final Report
                                                                                                    3
                                                                                                Table
                                            COMPLETION
                                       PROJET      REPORT
                                       HICHWAY
                                             PROJECT
                                                  (2393-KO)                                         I
                                                                                                Page Of2
                                 ACTllAL FORECAST
                                      AND             (1984-1986)
                                                TRAFFIC.


                       BaseYear 1984                                 Latet Year1986
Project
CPronent Vehicle
               TypeI    Vehicle 2
                              Type         Total    Vehicle
                                                          TypeI        Vehicle 2
                                                                             Type         Total
        Actual ForecastActual ForecastActual Forecast ActualForecastActual ForecastActual Forecast

  2       976            988           1,964         1,152     752     1,184    596    2,696    1,348
  4       507            428             935         2,315     584     1,549    367    3,864      951
 4-2      567            428             935         1,922     584     1.270    367    3,192      951
  33    9,852          18,975          26,827       22,898 8,549       15,780 5,334    38,678 13,883
  34    9,617          16,426          20,043       17,869 8,549       18,565 5,334    36,434 13,883
 34-2   9,617          10,426          26,043       17,869 8,549       18,565 5,334    36.434 13,883
  35    4,142           2,906          7,642        18,239 6,866       5,224 2,241     15,443   9,167
  36    2,456           1,641          4,097         5,636    3,587    3,163   1,423   8,799    5,316
  it    1,211            839           2,026          669      474       467    288    1,676      682
  11     378             247             625          530      193       372    193     962       383
  12     848             682           1,530         1,165     763       793    532    1,898    1,295
 12-2    848             682           1,536         2,736     763     1,745    532    4,1481 1,295
  14     532             323            855           758      478       375    256    1,125      734
                                                                                                                                Table
                                                                                                                                    3
                                                  PROJETCO0PLETION
                                                                 REPORT
                                                  IIICHWAY
                                                         PROJECT
                                                               (2393-KO)

                                           ACTUALAND FORECAST      (1984-1986)
                                                            TRAFFIC.



                             Base Year 1984                                            LatestYear 1986
CProjientVehicleTypeI          VehicleType2           Total           VehicleTypeI       VehicleType2                   Total
           Actual Forecast Actual Forecast AictualForecast ActualForecast Actual Forecast Actual Forecast
 15          486                 674               1,154               1,082     492      1,214       1,634     2,1296 2,125
 16          296                 479                 769                314      894        418        363        732       1,197
 17          903                 571               1,474               1,810 1,127        1,651        534      2,861       1,661
 18          816                 581               1,391               1,469     717        986        278      2,449           995
 19          314                 327                 641                642      597        426        312      1,R68           'ina

 26          452                 429                 881               1,559     820        737        68R      2,496       I,SH0

 37        5,554               3,845               9,399               8,326 9.157        5,487       3,832     13,813 12,989
 38        3,233               2,253               5,486               4,537 3,983        3,044       2,791     7,581       6,774
 21 .        437                 232                 669                764      483        218        356        922           839
 22        1,743                 958               2,781              2,918    1,367      1,954       1,674     4,872       2,441
 23          585                 385                 970                836      633        471        296      1,317           929
 39        3,984               3,662               7,646               5,752 6,613        3,636       3,563     9,382       9,576
39-2       3,143               2,955               6,098               4,678 4,483        2,693       2,968     7,671       7,371
      * Type I     Passenger Car, L.Tr'ick
        Type 2     Bus, H.Trurk
        Source     F"asibility Study Volume11.m1(Traffic   Volume Forecasted From 1986 In Feasibity    Study)
                   Statistical Year Book Of Road Traffic   Counts (M.O.C.) For Actual.
                                  -33-
                                                             Table 4
                            PROJECT
                                  COMPLETION
                                          REPORT            PageI of 2
                            HICHWAY
                                  PROJECT(2392-KO)
            EX-POST ORICINAL
                  AND      ESTIMATES ECONOMIC OF RETURN
                                  OF      RATES


Project       Proportion of total
                                investment             of
                                                   Rate return(%)
Component      TotalCost      Proportion(%)    estimateOriginal
                                         EX-post
                     Won)
              (Thousand                                  estisate

LOT 2           9,680,240        4.4           31.5         38.i

      4         3,778,371        1.7          70.0          45.5

     4-2        4,381.325        2.0          '67.2         45.5

     33         5,499,440        2.5          71.1          54.0

     34         2,419,190        1.1          70.6          61.6

    34-2        2.490,900        1.1          70.1          61.8

     35        14,273,910        6.4           55.9         53.5

    36         12,508,080        5.6           17.5         26.0

     10         6,377,546        2.9          47.0          30.0

     11         9,655,005        4.3          22.6           17.8

     12         1,203,050        0.5          76.6           53.0

    12-2        1,283,850        6.5          70.0           53.0

     14         9,251,660        4.2          28.3           33.0

     15         8,060,006        3.6           52.5         119.6

     16         9,999,739        4.5           34.6          46.6

     17         5,947,958        2.7           37.0          48.0

    18          4,866,558        4.2           49.8          35.0

    19          9,919,392        4.8           17.2          36.5
                                     -34-
                                                              Table4

                                COMPLETION
                           PROJECT     REPORT                   2
                                                             Page of 2
                                PROJECT(2392-KO)
                           HIGHWAY
            EX-POST ORIGINRL
                 AND            OFECONOMIC OFRETURN
                          ESTIMATES    RATES


Project      Proportion of total investment     Rate of return(%)
Component      Total
                   Cost   Proportion(%)
                                    EX-post     Original
                                         estiaate
                     Won)
              (Thousand                            estimate

 LOT20         6,153,096           2.8        34.1           43.5

    37         10,817,890          4.9        31.4           37.5

    38         21,396,078          9.6        28.0           35.6

    21         12,296,382          5.5        27.4           36.5

    22         7,193,576           3.2        38.4           56.6

    23         9,625,163           4.3        28.6           36.6

    39         18,189,298          8.2        39.7           43.5

   39-2        9,558,826           4.3        66.6           43.5
                                      -35-                                    Table 5

                                                                            Page of I
                                                                               1
                           PROJECr
                                 COMPRLETION
                                         REPORT
                           HICHWAYPROJECT
                                        (2392-KO)

                         PROJECT
                               IMPLEMENTATION
                                          SCHEDULE
             (Refers to Ministry   of Construction    Components only)
                                                                Implementation


           & Provincial
Part Nationai
   R.                Roads                              Schedule             Actual


    Prequalification
                of contractors                       Aug.6,1983          Aug.6-sep20,1983

    Issue invitationprequalified
        bid      to                                  Oct.1,1983          Oct.11,1983
     contractors

    Receive open
         and   bids                                  Nov.15,1983         Nov.28-29,1983

    Bids
       evaluation and
              report zovernment                      Nov.15-20,1983 Nov.38-Dec.6,1983

     recommendations

    Appoint
          consultantssupervision
                  for        of                      Feb.1,1984          Feb.13,1984

     improvement
             works

    Award
        construction
                 contracts                           Dec.12,1983         Dec.27-29,1983

    Construction
             roads                                   Feb.25,1984         Mar.10,1984
                                                -    Dec.31,1987     - Dec.29,1987


Part Procurement
   B.        of Rnad
     Maintenance
             Equipment


   Prepare
         equipment speci[ications
                list,                                Apr.15,1984         Aug.38,1984

     and documerhts.
        bid

   Award
       contracts(BY for
                OSROK) supply
                            of                       Feb.8,1985          Feb.8,1985
                                                -    Dec.31,1987    -    1ar.4,1988
     equipment.
                                         PROJECT       REPORT
                                               COMPLETION                                          Table6

                                               PROJECT
                                         HICHWAY    (2392-KO)                                      Page Of 2
                                                                                                      I

                                                 COSTSIWARY
                                           PROJECT
                                                                   only)
                                                          Components
                            (Refers Ministryof Construction
                                   to

             Componet
       Project                                          Won
                                                  million                             us   5666
                                        Local       Foreign     Total     Local        Foreign        Total


A. RoadImprovement
           -     km
      actual 445.7                      98,923      83,612     181,935    119,227      109,050        219.277

     ( original km )
             - 385                      (83,386)    (75,861) (159,181) (166,494)       (91,359) (191,853)


                      Program
B. Equipment Maintenance
          For
      actual                                        16,775     10,775       _           14,367         14,367

              )
     ( original                     |               (11,377)   (11,377)     -          (15,176)       (15,170)


           Services
C. Consultant
 -   Supervision Road Improvement
              Of
      actual                             2,090       1,106      3,196      2,473           1,369       3,782
              )
     ( original                         (2,090)     (1,383)    (3,473)     (2,473)      (1,637)        (4,119)

 -   Study Of Road Use Charges
      actual                               95          53         148           117          65          182
              )
     ( original                           (100)        (53)      (153)      (133)           (70)        (203)
                                    PROJECT      REPORT
                                          COWPLETION                                            Table 6
                                          PROJECT
                                    RICHWAY    (2392-KO)                                        Page 2 Of 2
                                             COSTSUWNIRY
                                       PROJECT
                        (Refers Ministry Construction
                              to       of                   only)
                                                   Components
                                              Nillion
                                                    Von                            ns    1110
             Corponet
       Project                     Local       Foreign     Total        Local       Foreign        Total

 - RPS ( Highway      Managewent
              Naintenance                                           .
         System)
      actual                         291         336        627          323            373          696
     ( original
             )                       (341)      (361)      (710)        (378)       (411)           (778)

          Fellowship
D. Training
      actual                                     234        234                         300           JAo
             )
     ( original                                 (225)      (2251                    (300)           (380)

         rharge
E. Sertice                                       286        281                         321          321
 .                                              (280)      (280)                    (321)           (321)
        Of
F. Right Way
      actual                       39,545         _       39,545        47,662          _         47,662
             )
     ( original                    (3,121)                (9,120)       (11.992)                 (10,992)


TotalProject
           Cost                    140,944     95,796     236,740       169,802    116,785       286,587
                                   (95,131)    (89,479) (184,519)   (114,471) (109,257) (223,727)
                              -38-
                     PROJECT       REPORT
                           COMPLETION                          Table7

                           PROJECT
                     HICHWRY     (2392-KO)                     Page Of I
                                                                  I

                                  UNDERLOAN
                           PROCURED
                    EQUIPMENT
        (Refers to Ministry of Construction Components only)

                                          QUANTITIES
NO        EQUIPMENT            CAPACITY           COST(US REWARK
                                                       S)
                                          IN UNIT

1    DumpTruck                  15ton       50      1,555,836

2                               8 ton       87      1,787,785

3                               4.5ton      10        127,136

4    CargoTruck                 2.5ton      77        618,609

5    MicroBus                 15person's 19           152,115

6    Traffic    Car
           Survey              6 person's 19          233,484

7           with Breaker
     Excavator                  0.85u?       19     1,297,400

8    MotorCrader                3.7a         14     1,056,307

9          Sprayer
     Asphalt                    6001         29       153,934

10   WheelLoader                1.7Vi        7        369,282

11   WeightScale              20 ton/axle    9        386,390

12              Roller
     Self-Propelled             6.5ton        1        40,698

13        Inspection
     Bridge       Car           11I           1       296,735

14   ColdMilling                550a         12       797,469

15   Crusher                    35 ton/h      3       384,737

16               Car
     Aerialplat-Form            4 ton         2        90,918

17                Car
     RoadMaintenance            4 ton         2       145,475

18         Plant
     Asphalt                   49 tori-,h    11      1,415,065

       Total                                372     10,909,357
                                                       -39-

I BR D H IGHWAY SECTOR PROJ ECT (MO C)|
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