HIGHWAYS V

closed

The Fifth Highway Project seeks to: (a) improve the existing network of national highways and bridges; (b) raise maintenance to adequate levels and remove the backlog of restoration works; (c) improve highway management, particularly maintenance, and thus further strengthen the MPWH institutional framework. The project also aims to assist in deregulating interisland shipping, developing the domestic construction industry, and improving the road transport industry. To accomplish these aims, the project provides for reconstruction of bridges, improvement and restoration of national highways, consulting and technical assistance services, and training. The project benefits are mainly savings in vehicle operating costs and in highway maintenance costs. The main project risk is in higher construction costs than estimated; this risk has been reduced by a thorough preparation of the bridge reconstruction and highway improvement programs. Two measures proposed under the Special Action Program and included in this project are a higher cost-sharing ratio and the establishment of a Special Account.