HIGHWAY II

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The purpose of the proposed project is to complete the improvement to modern standards of the 367 km long highway between Zupanja and Opuzen, linking the central regions of Yugoslavia with the Central and Adriatic Highways. Improvements to adapt the original highway to growing traffic requirements began about ten years ago. The completion of the highway would contribute substantially to integrating the southern coastal regions, which have extensive agricultural activity, with the industrial areas of the interior and would furthermore promote tourist traffic, one of Yugoslavia's major sources of foreign exchange. The project includes the construction, reconstruction or improvement of nine road sections totalling 128 km. It is estimated that the benefits from reduced transport and maintenance costs and from generated traffic will result in a rate of economic return of 13 percent.