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The proposed project would address a number of needs by assisting the Government in: (a) improving quality of future construction works by modernizing highway design, and by updating and improving construction and material specifications; (b) increasing the cost-effectiveness of highway investments by improving economic evaluation techniques for the evaluation and selection of road investments, and by supporting Government's new policy of moving to competitive bidding for public works; (c) supporting a highway research program, with particular emphasis on improving and strengthening the existing paved national road network, improving road capacity in congested areas and improving road safety; and (d) strengthening the capabilities of staff working in the highways subsector by carrying out a training program. In addition, the project would support the Government's program for completing the national road network by constructing or improving about 230 km out of a total 4,000 km of missing links in the network. It would also support a national program of improving economic activity in rural areas through the construction or improvement of about 1,400 km of rural roads.