HIGHWAY SECTOR

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The basic objective of the Highway Sector Loan project is to increase economic efficiency in Korea's highway sector through improvements in investment planning, transport regulation and pricing, and energy conservation. The loan funds will help finance a three-year time-slice of the highway investment program for the years 1984 through 1986 to meet the increasing traffic demand by improving and paving roads, improving highway maintenance, and reducing the traffic accident rate. To achieve these objectives, an Action Plan will be carried out as follows: (a) highway investment planning highway - to establish a system under which all highway construction and maintenance investments are planned and funded on an integrated and sound economic basis; (b) energy conservation - to expand and improve the effectiveness of a Government program to increase energy efficiency in the transport sector; (c) transport regulation and pricing - (i) to study the impact of the present regulatory system on the cost of transport services with a view to the identification and removal of unnecessary regulations; (ii) to study and identify the most approriate method of apportioning highway costs among users; and (iii) to study the use of freight terminals to improve road transport efficiency.