R E S T R I C T E D

FILE c V R epo r t N o. TO-283aFILE COPY TO (IDA) 3a

This report was preparee ft: use within the Bank ard the Association. Itmay not be published ncr nay it be quoted as representing the;r views.The Bank and the Associa'.on accept no responsibility for the accuracy orcompleteness of the contents of the report.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

INTERNATIONAL DEVELOPMENT ASSOCIATION

APPRAISAL OF A ROAD PROJECT

CHILE

June 16, 1961

Department of Technical Operations

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CURRENCY EQUIVALENTS

Currency: escudo (E )

1 US dollar = 1.05 escudo1 escudo = 0. 95 US dollar1, 000, 000 US dollars = 1, 050, 000 escudos1, 000, 000 escudos = 950, 000 US dollars

APPSAISAtL OF A ROADl PRGJE;CT, CHILE

Table of Contents

Page

SUI12VqRY i-ii

I. INTROLtJCTION 1

II. GEITt.PAI BACKGROUNTJ 1A. Roacis and Poad TransportB. Administration of flcads 4C. Execution of Road Constructicn 5D. Execution of Road Maintenance 6

III. TIE PROJECTS 7A. Lescription 7B. Cost 8C. Financing 9D. Execution 10

IV. ECOIJCMIC JUST:FICATIOD OF TIE; C01.TQSTUCTION PROJECT 31A. Fresent Status of Agriculture 11B. Stimulus to Agricultural Levelopment 13

C. Traffic Benefits 13-

V. CO;1ICLUvIO(iJS AiD RErECOi--Lf1ATJI NS 15

APPE! J_

Table 1 - Road 1Uetwork in 1960Table 2 - Registered Vehicles, 1950-1959Table 3 - Road Expenditures, 1954-19,9Table 4 - Road Construction Program, 1961-1965Table 5 - Tlorks included in the IhA ProjectTable 6 - Road Lesign Standards for the ProjectTable 7 - Southern Zone, Agricultural Production,

1959 and 1968Table 8 - Southern Zone, Value of Agricultural

Production, 1959 and 1968Table 9 - Southern Zone, Provincial Production in

relation to Consumption, 1959Table 10 - Major Agricultural Imports, 3958-1959

Map 1 - General MapMap 2 - Southern Chile; Road Network

i. The rhilean Governnent has asked for assistance to finance partof the cost of (a) a road construction project to rehabilitate and consolidatethe main secondary roads of the couthern Zone of Chile, which was devastatedby earthquakes in Ilay 1960, and (b) eouipment and repair facilities neecedfor the road maintenarnce operations of the i7hole country.

ii. The estimated cost of the road construction project is aboutuS$56.4 rmillion equivalent, of which US$19.0 million is foreign exchange.The foreign cost of the maintenance equipment uculd be about USJ;6 million.The tital amount of foreign erchange required is, therefore, U2.>25.0 million.It is proposed that IlA finance the foreign e.:change cost of the constructionproject, and the Bank the irmorted maintenance equ4prent.

iii. It is estimated that the project bill be completed by June 1964.All work on the construction project will be executed uncer unit price con-tracts let on the basis of international competitive biduing. Because ofthe wide separation of work uritc in the project, it is doubtful that foreigncontractors will participate in the bidding. The local contracting industrywill have to acquire additional equipment to be in a pos.tion to complete workon schedule. A minor part of the construction work in the project has beencontracted since the beginning of the year and it is proposed that ILA re-imburse expenditures incurred since January 1, 1961.

iv. Execution of the constr. tion project will be the responsibility ofthe Highiwy rDepartment of the Yinistry of Public U;orks. Althon"h the technicalstaff of the Department is generally capable, the shortage of staff and lackof experience in certain road construction techniques such as asphalt paving,mace it necess3ry to provide for engineering assistance. The engineeringservices, to be supplied as part of the construction project, woulct includeassistance for the preparation and execution of the construction, as well asfor thie reorganization of maintenance operations.

v. The possibility of the Highway lepartment being made into an auton-omous go-ernment agency has been broached by the Chilean authorities. TheAssociation will be kept inforred of oevelopments.

vi. In view of the conplexity of the construction project wlhich includesa great number of separate road sections witl' only preliminary estimates ofcost, it is proposed that a representative of Ii)A be stationed in Chile.

vii. The construction project will provide a sound all-weather road net-work connecting all main agricultural production areas of bouthern Chile witnmarkets, processing works and business centers. Its implementation is a basicrequirement to promote the increased agricultural prociuction programed underthe Chilean Ten-Year 1;evelopr-ent Plan. The maintenance equipment ana repairfacilities proposed for finanrcing are prerequisite to execution of the roadmaintenance program necessary for proper upkeep of the Chilean road system.

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viii. The Ch5lean delegation has affirmed during negotiations thatfinancial and physical resources would be given to the project as required.

ix. The project is sourd and economically justified. It provides asuitable basis for a crecit boy the International Development Association ofUSM'19 million equivalent for construction ana engineering services and aBank loan of US:6 million to cover the cost of imported maiintenance equipment.

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I. INTRODUCTION_

1. The Chilean Governnment has as':ed for assistance to finance partof the cost of (a) a road construction project to rehabilitate and con-solidate the main secondary roads of the Soutnern Zone of Chile, which wasdevastated by earthquakes in Nllay 1960, and (b) equipment and repair facil-ities neeaec for the road maintenance operations of the whole country.

2. Tne estimated cost of the road construction project is US<56.4rillion equivalent, of which US-39.O million is foreign exchange. Theforeign cost of the maintenance equipment would be about US&;6 million.The total amount of foreign exchange required is, therefore, US4;25.0million. It is proposed that ILA finance the construction project, andthe Bank the nmaintenance project.

3. This appraisal is based on the findings of a Bank/IbA iissionto Chile in December 1960 and on information subsequently made availableby the Chilean High-way Departrent.

II. GEnF7RAL BACKGROUMD

A. Roads and Road Transport

L. Chile is a long strip of land betA'een the Andes Zountains andthe Pacific Ocean, more than 1,OCO km long anQ with an a-verage wiith of175 km (see Map 1). Its 25 provinces may be grouped from 14orth to Southint^ four main zones:

a) the arid Northern Zone, where mining is the main economicactivity, while agriculture becomes progressively moreimportant from North to South;

b) the Cent. al Zone around Santiago, the heartland of Chileand one of the most richly endiowed areas in South America;

c) the Southern Zone from NuUle to Chiloe - devastated bythe earthquakes of May 1960 - has expanding industriesarourd Concepcion ana a high agricultural potential,encompassing lands suitabLe for cereals, cattle breed-ing and cold climate crops, in relation to the progress-ive variations in temperature and rainfall from North toSouth; and

d) the Austral Zone, exposed to an aLmost ulnenuing successionof storms and tempests, and sparsely settled in a fewprotected areas.

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5. 3ecause of her unusual geography Chile is particularly depenuenton good transportation facilities, and the emphasis in investrent nas beenon developing communications along the length of the country.

6. The land transportation system includes a longituoirial railroadand branch lines of various gauges, and a road system consisting of 3,5COkm of Pananrerican Kighway, also callcd Longitudinal Highway, running lNorthto South from Arica to Puerto Miontt and Chiloe, and about 53,000 km ofsecondary and tertiary transversal roads (Table 1). In gereral, the totalroad kiloretrage in the di-ferent areas of the country is comparativelywell developed in reference to the cultivated lana and the nlmrber of vehicles.

7. The number of vehicles has increased by 70io in the last 10 years,to a pre,sent number of about 1ia,000, many of them overage. Trucks, havingincrea2ed by 12C0, now outnumber the pass3nger vehicles (Table 2).

8. Data on traffic densities, excert for the Falamerican Hi-hway and.some of the main roads arounda antiao,, are scarce aru 7ot too relieble.

9. The information readily available on the ro,. of road transportin Chile is scaice. It appears that road transport has steadily developedin the recei.t years, while the traffic han:led br the railways and by coastalshipping (excl.uding the shipping of minera:.s) has bee-o aecreasing. The priceof fuel is low and shoula probably be incz-_ased to ke--.D road revenue in linewith the increasing public expenditure for road works. Hovever, the A-issionwas not able to obtain figures of the total contribut )on of rnad transportto the public eychequer.

10. There is little regulation of road trucking operati.cns. lfn Chile,as in many other countries, there is competition among an excess-v_a nurcerof small operators; current ra%.es do not cover reasonable depreciation ofvehicles. ISany operators go bankrupt but are replaced by newcomers to thetrucking business. The railways suffer from t';e uneconomic truck rates.

11. A Transport Corriission, under the Under-Secretary of Transport, hasbeen created in the Mlinistry of Econorry to atudy the conditions of highvayand railway transoort and coastal shipping and to make recomimendations fora comprehensive policy of transport cooroination. For roan transport, theCor,ijssion should recommend adequate ta:ation measures, licensing proceduresand vehicle weight anu dimension regulations. These subjects could suitablybe followed up by the Bank mission which is scheciuled to visit Chile in June1961.

12. Rleal capital expenditure for rcad construction has significantlyincreased in the last three years, as shown by the sumaary figures belcw.Letails are given in Tables 33 and 3b.

Highway Expenditures 195h 1955 1956 1957 1953 1959(_n 1 fillion E0 oi7 1960)

Construction and Retterment 1lc, 13.3 18.3 24.8 30.1 39.1

13. In recent years sub3tantial earmarked appropr.ations have been madefor the realignment and pavina of the Lorgitucinal Highway. Progress has beenslow because of the adoption of uniformly high standards, particularly in theextensive use of concrete surfacing.

1. Until recently the funds available for construction and bettermentof transversal roads were markecly inadequate. Furthermore, m.ost of the fundswere earmarked and haa to be split among a r.ultituae of unintegrted projects.The worics were numerous and mostly of a minor nature, too small for construc-tion of roads to adequate standard.s or to promote consolidat'Lon of tbe system.The funds available for maintenance of the roads were insufficient. `urtner-more, folloiwing the earthquakes of May 1960, a large proportion of the r.atdnalresources, inc'uoing those for roads, were used to clean cities and effectemergency repairs. As a result, the stanaards of the transversal roads arelow and their present condition is bad.

15. The roads are particularly poor in the ten provinces oZ the SouthernZune devastated by earthquakes. This area, -,here more than 5a,, of the agri-cultural proauction of the counti: (ircIvaing forestry products) originates,has great need of gooa roads from farn areas to local centers, markets and tothe longitudinal railway and highway. But the road neti4ork is generally ofa lower quality than in the rest of the couwtry, as evic.enceci by the factthat, due to heavy rainfall averaging from 1,000 to 3,0C0 mm. annually, L5%of tr.] transversal roads in this Zone are classifi.ed as impassable duringthe five-month rainy season (April-Septer.ber) of each year, as against 22,,in the Central Zons. In addition, the damage caused to roads and bridgesby the earthquakes, estimated at about E' 2 million, has only been partlyrepaired.

16. Execution of a comprehensive and well planneQ road program isurgently required, in which priority should be given to:

a) the imp-rovement and ccnsoliaatif-n of the secondary-road network in the Southern Zone, and

b) reorganization of the road maintenance operationsand additions to the inadequate maintenanc-s equip-ment and facilities, wJithout which newly rehabilitatedroads would rapidly fall out of repair.

These are the items which are being ccnsicerea for Il.A/Bank financing.

17. A Government agency, the Corporacion de Fomento de la Produccion(COPFO), is preparing a "en-year plan of ecrnomic development for the wholecountry. It has recently issued a draft plan, which includes allocations of

about LP 50 million per year for road construction and the foreign purchaseof maintenar.ce ec-ipment; for the per_od l96l-1965 the proposed allocationfor road constrnction is about EO 233 million (see Table 4) and for main-tenance equipment EO 11 million. The improvement of transversal roads inthe Southern Zone ujould ue emphasized, the allocations for the Southern andAustral Zones increasing from El 13.5 million in 1961 to EO 22.9 million in1965, the total for the period being 41 of the whole amount proposed forroad construction in Chile.

18. A lot remains to be cone to outline investment priorities for thewhole field of transportation, and to work out details of the part of theroad p;ogran not included in the project presented lo the Association.

19. The need for careful and detailed planning is irperative because ofthe high aegree of division and complexity of the wo-rk requirea to consclidatethe transversal road system, a direct cor-secuence of past lack of coordinatedplanning and construction, and failure in many instances to complete what hodbeen started. It fojiows that consolidation of the system requires the ex.e-cution of a consi-ierabl- number of separate road projects.

20. The pir.t priority for transversal roads should be to strengthenthose beari:ng, or likely to bear in the near future, sizable traffic densities,and the principal agricultural roads in areas where marketing requires assur-ance of all-year transportation. Improvement of other roads, such as feederroads, snould not be undertaken on a large scale at this stage.

21. A classification of the rore important transversal roads should beworked out to form the basis of future road programs. Such a classificationfor the Southern Zone was prepareat jointly by the Ministry of Public llorks,the Ministry of Agriculture and COhFO, at the request of the ILA/Ean-' ission.It shoulu now be further refined ard extenued to the rest of the country.

B. Administration of Roads

22. The Department of Highways in the i.inistry of Public l'orks isresponsible for roads and civil airfielus. The Department's head officeis in Santiago and there are 25 aistrict offices, one in each province.The Department has 5 technical Livisions: studies of roads and airfielos;construction of roads and airfields; studies ana construction of bridges;equipmnenly; and provincial services. The general plalning of c'nstruction isdone by the division of st'icies. Private engineers are frequently used forsurveys. Responsibility for the engineering and execution of construction isdivided between the head office and the aistrict offices, according to theimportance of the works and the availability ofp personnel. In addition, thedistrict offices carry out all maintenance functions, reporting to the chieiengineer for provincial services.

23. The techniical staff of the Highwlay Lepartment is capable, but theDepartment as a bouy appears to cling to tradition. Performance also suffers

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from an acute shortage of persornel (less than 100 engineers and assistantengineers in the whole organization) and unsatisfactory cooperation betweenthe divisions of the Department and other agencies. because of betteropportunities in private business there has been an outflow of engineersfrom the Service. Salary increases were given recently to check this move-ment but nothing has as yet 'ceen done to make the Service attractive to newrecruits. The bad effect of understaffing is accentuated by the increasingvolume of rnaa work to be done.

2b. The Chilean Governrent Is considering the possibility of establish-ing a form of autonomous goverrzent agency for public uorks, which wouldincorporate the existing Hlig#5ay Lepartment. The objectives, as regardshighway adndristration, would :e: (a) to e--. tnher remove highway works frompolitics (b) to effect reforms in the orgaW' ation vhich would "ostertechnical ad7ances and increase the number and caliber of the staff, and(c) to create an economic section -hich, in cooperation with C"':v0 andother governmental bodies, wour'ld oD highway planring. The Associationwill be kept informed on the Government prcposal during execution of theproject.

C. Execution of Road Constructien

25. All road construction in Chile is done urder unit-price contractsawarded after public bidding. "70reign contractors may bid but they aid notshow any interest in recent years. There are aoout 50 local contractorsregistered and qualified by t' F4' hway lepartment to contract for largerproject works let by the head office; about 15 of these contractors havecapital of about EO 1 million ann -,:oula be capable of executing contractsup to E° 3 mcllion per year. In adcition, there are about 1CC contractorsqualified by the district offices 'or minor works.

26. Except for construction mork on the lcngituuinal highway, contractsare usually well below F° ;. r4=lcn, and the const-ruction time schedule isgenerally one to twJo years. lio effort has been made by the Lepartment toc :'mpel contractors to complete work on time, or to provide adequate fundsfor completion according to schedle.

27. Construction is only partly mechanized. The unstable financialsituation of the country in recent years and the small size of the contractsawarded, together with the lo' cost of hand la'oor, have prevented the con-tractors from moving towards fuLler mechanization. The Ministry of Publiciorks rents some equiprent to the contractors, although it was decided threeyears ago to end this practice at the time when quotas on imports wereabolished.

28. Earthmoving is usually done by dump-trucks hired by the contractors,loading and unloading being done ranually. Only the simpler techniques areused in conistruction, and little attention is paid to compaction, drainageand selection of material. There is no shortage of operators and mechanics,these being trained in nu.mbers bvy the arry on equiprent provided by CORFO.

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But it would be necessary for contractors to engage experts, for the full-scale operation of equipment, if more mechanization were to be intro-duced.

29. In general, soil corc.tions are favorable for road builcing. Thesubsoil in most parts is rather sandy, giving sufficient permeability forgroundwater drainage, and there is an abundance of good aggregate. As aresult road builcing is comparatively cheap in Chile. However, cementconcrete is predominantly used for pavement, although in M;nny instancesa light asphaltic pavement would give adequate service for a much smallerinvestment. There are several reasons for this precominance: a well-established cement industry exists in Chile, local asphalt procuction issmall and supplies would have to be imported, and the Highway Departmentlacks experience with asphaltic pavement. -nerts provided under Point IVassistance have intermittently, for sevV._ -s, been advising the Lepart-ment on gravel and asphalt surfaces, 1 *t asph- surfacing is still verylittle used and the quality varies.

30. In Southern Chile, co-struction is traditionally discontinuedeach year from April to Septerber because of the rains. The possibilityof carrying on construction during the rairn season will be investigatedduring execution of the project.

31. On the whole, construction in Chile still follows tracditionalways. There is a desire for progress in terms of larger contracts, moremechanization, more asphalt paverent, reduction of delays in execution ofwor!;s, all beinc contemplated but still to be implemented.

D. Execution of Road .laintenance

32. Routine maintenance, which is not clearly separated from roadconstruction in the highway bucget, has been traditionally in last positionon the list of priorities for roaa expenditures. In recent years it amourtcdto less than 10% of the hi6hway budget (Table 3a).

33. A few years ago, all naintenance work v.as carriea out by districtforces, and there was a tendency to have an increasing amount of bettermentwork done by th..se forces. This policy was revised in 1958 to the point ofcontracting sore of the routine maintenance. The policy of the governmentis now again to have maintenance entirely executed by direct administration,and to contract for betterments.

3L. ltaintenance -perations are carried out inQepennently in each dis-trict, subject to the approval of the Chief Engineer of Provincial Se.-vices.It is on the whole more mechanized than construction. Hovtever, the ma1.nte-nance equipment includes widely diversifieu makes ana types, many of themoverage, and in general it is insuflicient for the task.

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35. Equipment maintenance and small repairs are cone in district work-shops. Major repairs are done in the central shop at Santiago, or by privateshors. i3uiluings and repair facilities in the departmental shops do not meeteven modest requirem.ents, although the existfrng maintenance equ_, seint is wellmaintained, when not idle for lack of parts.

36. The procurement of newri maint.enance equipment is clearly required toincrease the tempo of operations, and certain reforms would be necessary inthe present maintenance organization. The basis for such a reorganizationwould oe the preparation of a general naintenance program of sufficient scopefor the next two or three years, as an initial step in long range planning.The requirements of eqiuxi=ent, spare parts, of additional shop and builaingfacilities, and personnel 'woulci be determined by 'his progran.

III. THE PiL CT

A. Description of the Project

37. The project consists of:

a) neu construction or relocation of about 950 km of ruads,the betterrment of about 2,500 km of existing roads, thepaving (mostly asphalt) of about 4C0 I:m ana the recon-struction of a large bridge, all in the ten provinces ofSoutherm Chile devastateu by thie 1960 earthquakes;

b) the purchase ard importation of equipment for maintenanceoperations; and

c) engineering services for the pl naration ana axecution ofthe constructicn work unQer (a) anai for the ieorganizationof maintenance operations.

33. Construction and betterment of about 3,500 km of road in the project,as indicated above, v;ould take place in a network of approximately b,800 kmof major transversal roads comprising roughly 20S of the total network in theSouthern Zone. The roacs in the project are groupea in 23 contiguous sectorsas shown in Map 2 and Table 5. A purpose of the project is to consolidateroads *within the sectors as part of the total system of the Souther:i Zone.The proximity of the roac' wo-ks to be gone within each sector should make itpossible to have tenders for larger contracts than ir. the past.

39. Suitable design standards will be usecd (Table 6), conforming tousual norms for secondary roads anc the traffic service requirements, presentand future.

40. Considerable work; has still to be done to complete tha preparationof detailed estirates of quantities and costs, and to work out detailed con-struction schedules. The Highway Departir.ent requires advice to do this

and for the actual execution of the wor-k and has agreed to engage con-sultants. Provisio;- nas oeen made in the project for engineering services,in connection wjith planning, soils investigations and asphalt paving, andfor transportation and laboratory equipment. This provision also includesan allowance for engineering services to help the Hi-IR;hway Department withthe maintenance program and reorganization.

B. The Cost of the Project

Li. The total estimated cost of the project is USq,62.4 million equiva-lent, made up as follows:

UJ3; million

a) Road construction and betterment 55.7b) Procurement of maintenance equip-

ment ana repair facilities 6.oc) Engineering services and

equipment 0.7

Total 62.4

h2. As previously mentioned, because of the ea.ly stage of preparation,detailed estimates of quantities and costs for construction are not availablefor all the roads in the project. The initial cost estimate prepared by theHighway Department was based on their experience of costs per kilometer ofroad for different types of work and terrain. Such estimates are tentativeand allo.ance must be made for the probability of sizable differences infihe actual costs of construction.

L3. Measures have however been taken to cGunter-balance the uncertaintyof the cost estimates. Thze estimate of US<:55.7 million equivalent includes2N as contingency to cover increases of work quantities and 1CU a pricecontingency for the local currency costs. These allowances seem Go bereasonable.

4. The airect foreign exchange cost of the construction work is esti-mated at UW'8.3 million. This figure is 355 of the constnrction cost, ex-cluding the 10% alloweu for local currency price increase (see Tablo 5).the estimated foreign exchange cost is about 33% of total estimated construc-tion cost.

L5. The foreign exchange component is based on an analysis of recentcontracts for similar ;orks executed b- local contractors, taking into accountthe depreciation during construction of contractor's imported equipment. Hlow-over, allowances have been made for more mechanized operations and for the possibility

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that a few foreign contractors may secure contracts. If there were to bea substantial foreign participation the percentage should be higher.

C. Financing of the Project

46. It is assumed that the Association would finance the foreignexchange cost of the construction and the engineering services and equipmenttotalling US!$19.0 million equivalent, and that the Bank would finance themaintenance equipment amounting to US'>6 million equivalent,

147. A small part of the construction work has already been contractedthis year and it is proposed that the Association agree to reimfbiurse expendi-tures made since Janaary 1, 1961,

48. A tentative disbursement schedule is given below:

In 000 000 $1961 196 1563 1964 Total

IDARoad construction and

betterment 2.7 4.0 9 6.2 b.5 18.3Engineering services

and equipment 0.3 0.3 0.1 - 0.7

Total 3.0 5.2 6.3 4.5 19.0

BANKMaintenance equipment and

repair faci3.ities 2.5 3.5 - - 6.0

49. The remainder of t:te funds required for construction, US'a37.4 millionor E° 39.3 million, would have to be made available by the Chilean Governmentfrom budgetary appropriations or other sources. Sufficient funds would alsohave to be provided bv the Government to meet the local currency requirementsof the maintenance pro-ect and the program which would ensue. The HighwayDep-tment has indicated that appropriations of E° 28.5 million for theperiod 1961-1963 would be necessary, but the adequacy of this amount shouldbe determined in consultation with the maintenance experts provided in theproject.

50, In the recent past increasing amounts have been appropriated by theGovernment for road works. The Government is aw-re of the importance of pro-viding largcr allocations, and plans to allocate to road constructJ#'; partof the fcreign assistance it expects to receive from aid funds srsch as theUS9100 million Special Earthquake Fund (no; approved by the U.S. Congress)and PL 480 Funds.

51. Legislation was passed through the Chilean Congress at the end of1959 to relax the rigid legislative earmarking which had restricted road cvn-struction in the past. The only important earmarking that remains ccncernsthe use of the tax on copper, from which tile revenue allocated to roads goesmostly to the Longitudinal Highway.

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52. Provisions have also been recently made to authorize the carry-overof funds from one fiscal year to the next and to guarantee rapid availabilityof the appropriations voted in the budget, at the beginning of the fiscalyear, so as to put an end to the traaitional scarcity of money in the firstmonths of each year, which was particularly detrimental in the Southern regionwhere it occurs in the middle of the construction season.

53. There now remains no administrative obstacle to the efficient allo-cation of the financial and physical resources available for roads, and tothe extent neeued they shoulci be directed to executing the project.

54. The Chilean delegation has affirred auring negotiations that finan-cial and physical resources would be given to the project as required.

D. Execution of the Project

55. It is expected that the construction work on the project will becarried out in a period of about 3 years, ending in Jvne 1964 before therainy season.

56. A small part of the work has already been awarued in numerous smallcontracts. All future construction will be done under unit price contractsawarded through interr.ational competitive bidding.

57. In order to complete the construction to adequate specificationsand in the time schedu'le indicated, it will be necessary for contractors touse mechanized methods. In particular, the local contractors require moreequipment to meet the construction specifications e.g. compaction and asphalt,and would be encouraged to mechanize operations by contracts of larger va2ue,size and auration, than are at present awarued for transversal roaa works.It has been agreed that larger contracts will be offereu for tender for thework to be executed under the project and that local contractors receivingcontracts for the project will be given facilities to purchase the equip-ment needed.

58. Hcwever, the wice separation of work units in the project over theSouthern Zone, and the relatively low cost of labor which could restrict thedegree of mechanization, place a practical limit on the size of the contractsthat can be awarded. For this reason it is doubtful that foreign contractorsi;ould be interested.

59. IJork for which the employment of foreign contractors would bedesirable is asphalt su-facing, as local contractors lack experience therein.If local contractors were to do this pavement work they should engage foreignexperts t( provide the technical experience necessary to assure properexecution.

60. The procurement of maintenance equipment to be financed by theAssociation will be based on international cormpetitive biaocing. A finallist of the equipment required will be agreed upon between the Association

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and the borrower wihen the plan of reorganization cf maintenance operationshas been established with the asbist-ance of the maintenance consultants.

61. The genieral complexity of the project, the necessity to completedetailed engineering ana final cost estimates, the results of which mightrequire some change in the size of the construction project, the need fordetermination of the proper s.ze of the maintenance program and budget, aswell as the requirements of end-use supervision and administration duringexecut-on, make it desirable that a representative of the Association, whoshould be an experienced highway engineer, be stationed in Chile during theexecution of the proiect. The Chilean authorities have indicated that theywou'd welcore such a representative.

I'V. ECONOIC JUSTIFICATI!! OF THE CO0!STRUCTION PROJECT

62. The construction project is designec to provide an integrated all-weather road system in the Southern Zcne, the most important agriculturalregion in Chile, and thereby promote the development of its productionpotential. The roads in the project, selected accoraing to their economicimportance, form with the longitudinal highway the essential framework of theroad system in the Zone, provicing connection between the main producingareas and consumption and processing centers. The principal benefits expectedfrom the execution of the works sten from:

a) the ability to market present proauction all year withoutundue spoilage in transit;

b) the inducement to agricultural aeveloprent which wouldbe realized with private investrent; and

c) direct economies in road vehicle operation.

63. The maintenance project is essential to the proper upkeep of thewhole system of Chilean roads.

A. Present Status of Agriculture

64. The provinces of the Southern Zone to be served by the proposedroad project include the main agricultural areas of Chile. The area of theten provinces totals 10 million hectares, of uhich 8.9 million ha. are classi-fied as agricultural land. This includes 3.6 nillion ha. classed as arable,l.h million ha. as under native pasture, 0.3 miallion ha. as under plantedforest and 2.1 million ha. as under natural forest. The balance is hilly,natural grazing land.

65. Approximately 2.5 million persons, or 32 percent of the total popu-lation of Chile, are located in these provinces. About 87,000 farmers oper-ate the 112,000 holdings included in the area and approximately 380,000persons are airectly engaged in farming. Approximately 3% of the holdingsexceed 500 ha.in area and 30% are less than 10 ha. Under a recently initiated

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scheme, Government land is oeing maae available where practicable to bringsub-standard holoings up to an economic size.

66. The soils of the five northern provinces are mnainly sanidy loams ofonly moderate fertility, in parts suffering from erosion, intersperbea withmore productiLve alluvial flats along the watercourses. The soils of the fivesouthern provinces range from light loams to heavier fertile basaltic clayloans.

67. Rairi'all approximates 1,OC0 rrm annually in the north with precipi-tation mainly in the autumnr and winter. It increases progressively southto about 2,500 mm annually, assuming a more even spread in precipitation butwith the heaviest falls in winter and early spring. Approximately 250,OCO ha.are irrigated, mostly in the north. Plans are in preparation for a substantialexpansion of irrigation.

68. Some 3.2 million tons of agricultural products, representing about53% of the total Chilean output, are produced in these provinces annually.Production includes cereals, sugar beet, potatoes, dairy produce, beef,mutton, vegetables, fruits and wine. In addition, quantities ol timber andwood pulp are produced. The total value of this production in 1959 was esti-mated at E° 217 million, of which crops accounted for Eo 1C5 million, live-stock 50 97 million, and fnrestry E° 15 million. betails are given in Tables7 and 8.

69. The greater part of the production is transported by road for apart at least of its conveyance to narket. In particular, it is estimatedthat approximately 2L2,0C0 'ons of the farm proauce needs of Concepcion andnearby industrial centers are brought from production areas located over100 km away. The surpluses and deficiencies of production in comparison tcconsumption for each of the provinces are given in aetail in Table 9. Theseinoicate the order of magnitude of inward and outwarc inter-provincial move-mcnt of theso products.

70. Chile's imports of importart agricultural products totalled US¢;80million and USX72 million equivalent in 1958 and 1959 respectively. Letailedstatistics, given in Table 10, show that sugar, wheat, meat, fresh fruits,milk and oils, which are all prouucea in the road project area, accounted forimports of about US:;50 million equivalent in 1959.

71. Although the existing road network provides access to the main farm-ing areas, agricultural proauction in all ten provinces is currently retardedby the poor condition and stanoard of roads and, in many cases, lack of directinterconnection that woula substantially shorten haulages t. and from thefarms. Dairy production is halted during the wetter months of tin year becausethe condition of the roads makes it impossible for the collection service tooperate. Transportation of produce and delivery of farm supplies generallyis slow and expensive. Agricultural extensior. services are restricted by theslri: rate of travel between farms. Because of the cost and difficulties in

- 13 -

delivering to market, many farmers are not developing the potential for greaterproduction that exists on their holcings. aOing to the lack of road access, alarge portion of the Arauco Province has remained unceveloped despite its un-doubted potentialities and proximity to the large and expanding market of theindustrial area of Concepcion.

B. Stimulus to Agricultural Development

72. The road construction project would provide an all-weather road net-work in Southern Chile, built at suitable standards for the traffic, connectingthe agricultural areas of the ten provinces with markets and processing works.The present production of this area gives rise to sufficient road traffic tojustify all-weather roads uy currently accepted standards. The constructionof such roads is a basic requirexment for the efficient development of the zone'sagricultural potentialities as nwj progra=:ed under the Chilean Ten-year Level-onment Plan (Table 7).

73. This plan for the Southern Zone aims to meet the expanding demandof the dorestic market for food grains, sugar, dairy products, meat, etc.,and to provide an exportable surplus of those for which prcfitable markets areavailable. The potential for the planned increase of output J.es in higherproduction for lands already farmed ar in pasture and in prospective productionfrom undeveloped lands. As evidenced by Chile's prescr.t, import of food grainsand sugar (Table 10), a yearly population growth of 2.5%, industrializationana urbanization in and around Concepcion, Santiago, Valparaiso, and the graterdemand with improved standards of living for dairy produce, meat and otherfoods of high nutritional value, markets for the increased production areavailable and could be served if more reliable road transport coula be provided.

7b. Of tile 3.6 million hectares of land classed as arable, 0.5 million ha.are not producing a crop, and about 2.0 rillion ha. are mostly poor-classpasture. There is considerable scope, therefore, to increase the area um erdrop, and crop yields vwould also be substantially improved by the use of betterseed, imprrved varieties, increased fertilizaticn, better rotation, greatermechanization and the adoption of moaern farming techniques. By the sowiingand fertilizing of improved type pasture, thc present livestock carryingcapacity could be more than doubled.

75. A considerable pr-opotrtion of the 1.b million ha. now classified asnative pasture could also be developed for cultivatirn or improvea pasture.This is particularly true of the undeveloped lands of Arauco Province.

76. A comparison of present procuction and future production goals for1968 by individual products is given in Table 7. The table shows increasesof production ranging from bC% for fruit to 175% for corn. Practically thewhole increase would be production for sale to be road hauled all or part ofthe way to market3 or processing plants.

- 14 -

77. The value of the planned additional producticn at 1960 prices, isestimated at E0 163 million (Table 8), of wVic.h agriculture would contributeEO 65 million, Livestock EO 90 million and fr'restr;- EO 8 mill-on. Achieve-ment of this level of production would require substantial private investmenton the farm for machinery, fencing, buildii-ngs and uater facilities, and in pl'o-cessing works for dairy products, meat ana sugar beets. The amrcunts requiredcannot be definitely- assessed but would 'oe provided or borrowed by the farrmersand cooperatives in the zone, provided the incentive to increase their pro-duction for sale was given by public investment in an all-weather road net workto service the farm areas, The size, ownership and operation of farms inSouthern Chile are generally suitable to agricultural development and the aver-age farmer is sufficiently qualifiea to apply technical advice, which could bemore easily piovided iwhen imprrved road conditions permit greater mobility ofthe extension service.

78. Year-rouna access fro-r the main prcduction areas to ruarketirg andprocessing centers woula obviate the spnilage and loss of agriculti-ra. productsnow occurring through lack of this facility. ^aritionally, lost t_me in agri-cultural operations, nov experienced because of trarisport conditions, w-ould beminimized. The imnediate res-ilt would be to reduce production and marketingcosts.

79. The project wxould also incuce substantiallj increased agriculturalproduction within a very short tir.e. This expansion is vital to the nationaleconomy.

C. Traffic Benefits

80. Design standards for the roads in the project have been selectedaccording to the traffic potential of the areas servea. The three stanoards(Table 6) will be applied accoraing to the expected traffic density of eachroad (roughly less thar. 100 vehicles a day, between 100 and LOO vehicles,more than L00 vehicles within six to eight lears). The higher standards willbe used for about 205o of the total km, the interrc;iatc standar6s for about45%, and the lower standards for 35/'.

8L The :.:ajority of the roads will be built initially wi.Z.h a gravelsurface provicing at minimum cost all-weather service. Lcon-;;..es in vehic).0operation resulting therefrom will include lower direct costE - ya o'line andparts -, and lnwier fixed costs per km because of longer servjn perlod in theyear. Total economies per year would initially aLtount to ;ntn:e than S% of thetotal construction ccst of gravel reads in the project. Thno a ecoro.Mies wouldbe in admition to the principal benefits from the stinulus gi;;n to agrictulturaldevelopment.

82. Roughly speaking, the read sections to be pa ved are expecteti tocarry above 300 vehicles daily at the time of comlpletion. M!ost of these s_c-tions will receive a surface treatment; plant-mix asphalt or concrete will be

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used on a few sections with the hi-hest traffic densities. Vhile asphaltsurfac.ing is more expensive than gravel, for roads carrying an average trafficdensity somewhat lower than 300 vehicles per day, the increased cost of con-struction is justified by the further reduced cost of vehicle operation. How-ever, as very little asphalt paving work has so far been aone in Chile inareas of abundant rainfall, paving will be restricted in amount until addi-tional experience in construction and performance under traffic is gained.

83. The traffic forecasts are based on the limited data availablesupplemented by the practical knowledge of Chilean road engineers and agrono-mists. Estimates of the development of the econong and primarily of agricul-ture in Southern Chile and the related ;raffic development are dependent uponassumptions of private investment decisions. In view of the complexity ofthe road system, it was not possible to have surveys made for eacn road. How-ever, the global traffic estimate arrived at by adaing expected trafficdensities on various roads in the project area appears to be consistent withthe available information on the number of vehicles, fuel consumption andthe volume of production in the Southern Zone.

84. Several of the roads in the project parallel railway branch lines.In view of the short distances most of these lines would not be able to com-pete successfully with road transport for the local traffic, nor for thetraffic feeding into the longitudinal railway line, as goods have to be trans-shipped from narrow or meter gauge branch lines to the broad gauge main line.Roads will then be used increasingly to transport goods to the main line orall the way to regiona2 markets.

V. COIJCLUJIt013 AND RECo0x> .ATI0OS

85. The road construction project proposed for financing by the Asso-ciation will considerably improve road communicaitions in Southern Chile andremove one of the major obstacles to the development of agriculture andrelated industries in a region richly endowed with natural and human resources.The maintenance equipment and repair facilities to be financed by the Asso-ciation or the Bank are prerequisite to the execution of the needed mainte-nance program for Chile's road system.

86. The project is souna and econonically justifiec. It provides asuitable basis for a credit by the International Development Association ofUSS,l9 million equivalent for construction and engine-ring services, ana aBank loan of USt6 million to cover the cost of imported maint?nance equip-ment. An appropriate term for the loan would be 9 years including a periodof grace of 3 years.

Table 1

CHILE

ROAii IMETIMh)P IN 1960

(in km)

Zone -Longitudinal Highiay- - Transvercal Roads-

Paved Unpaved Total Paved Gravel Earth Tctal

Northern 5L1 1,486 1,927 717 2,C52 9,917 12,6e6

Central 546 - 5L-6 958 6,287 7,661 l,9C6

Southern l456 )499 985 188 9,013 11,895 21,096

Austral - - - 7 1,3L4 3,214 L,565

Total i,573 1,585 3,1458 1,870 18,696 32,687 53,253

Table 2

CHTLF,

.RTGISTBLE: 7B.I,L 1:0-1959

Year Cars Buses Trucks Total

1950 4o ,09 8 b, i6h 27,751 72,013

1951 13,39C X,222 31,059 78,671

1952 47,700 4,070 36, 354 88,52b

1953 47,739 b,501 39,278 91,518

1954 49,171 h,732 L2,832 96,735

1955 "8,263 L,722 L5,184 98,169

1956 52,3c6 L,801 47,501 loL,608

1957 53,913 L,,h17 54,830 113,160

1958 53,772 5,056 56,655 115,483

1959

South Pegicn 8,121 774 13,16I 22,C59

Rest of Ccuntry L8,032 h,59r L866 101,286

Total 56,153 5,364 61,828 123,315

Table 3aCFTIE

FOA EXP;IDTITLMES (195i4-1959)Un; OCYJ;XO E•0 of 1960)

195J; 1955 1 956 1957 19c8 1959

1. E ropriations 0.148 0.29 C.25 0.22 0.28 0.4L

2. Constructi.onConcrete Roads 4.68 5.77 8.08 10.98 13.74 22.h2asphalt Roads 8.81 3.81 3.30 5.02 6.53 1.13Other -o0ds 1.25 2.7i 2.a 1 4.15 L.36 10.653ridges 1.82 1.70 2.63 3.07 3.e 7 2.38

3. Eettere.nts 1.30 1.29 1.5C 1.58 1.59 2.26

Total (2 & 3) 10.CC6 13.31 Ic.32 21 .' 0 309 39.1U11 Nairitenance

Road ilaintenance 2.68 2.18 2.19 2.72 2.70 3.26BridZe .epairs 0.29 0.27 G. 30 0.20 0, 0 .37

.dintenance of Equip.and Sh'ops C.37 C.2> G.3CC. 047 -0.52 0.36

Tot-l 3. 3; 2.69 3.1 5 3. 39 3 .145 4.0Q0

5. Purchase of Lquipnent 0.77 0.67 1.65 0.78 14.148 2.12

Grand Total 22.65 16.96 23.37 29.19 38.30 45._

Table 3bDISTPUTD:IFT 19,58 3nd 1959

(in COO,000 E0 of 1960)!:crt,emn Central Southcrn 2nd .:ll

1958. one Zone hustra_l '7ors Zones

ConstructionLongitudinal h.149 2.81 8.60 15.90Transvcrsals '.cs 8.15 4.60 13.80

Total 1.514 10.>6 13.20 29.70Road >¶airtenar.ce L.58 0.92 1.20 2.70

Grand Total 6.12 11.63 14.40 32.40

1959Construction & Betterments:

Longitudinal 6.91 2.50 11.00 20.41Transversals 1.27 11.92 5.13 14.32

Total oT.l 1!.b2 16.13 3J.73Road ijaintenance 0.74 1.18 1.34 3.26

Grand Tot-1 . .92 15.60 '7.147 41.99

Note: Mœinor differences in tot-als in TablEs 3a and 3b due to figuresbeinc taken from data of different detes.

Table h

CHILE

ROAD CONST&iXCTION PROG-RI (1961-1965)

(isn CO,rOO E° of 1960)

North Zone Central Zone Southern and All

_Austral Zone Zones

1961

Loncitudinal 7Loo 0.90 9.60 17.50

Transversals 2.15 7.35 13.45 22.95

Total 9.15 8.25 23.G5 40.45

1962

Longitudinal 7.50 0.90 9.10 17.50

Transversals 3.20 8.60 16.75 2d.55

Totpl 10.70 9.50 25.85 46.05

1963

Long-Itudinal 8.00 0.90 6.10 15.00

Transversals 3.20 1080 20.55 34.55

Total 11.20 11.70 26.65 49.55

1964

Longitudinal 7.10 1.00 4.00 12,10

T-.nsversals 3.38 11.39 21.68 36.45

Total 10.48 12.39 25.68 48.55

1965

Longitudinal 5.9o 1.00 '.CO 9.90

Transversals 3.56 12.02 22,87 38.45

Total 9.46 13.02 25.87 48.35

1961-1965

Longitudinal 35.50 4.70 31.80 72.00

Transversals 15.49 50.16 95530 160.95

GRAID TOTAL 50.99 54.86 127.10 232.95

(Source: CORFO)

Table 5

CHILE

WOT.hS IN!CL)T Il! THE IDA PROJECT

(Eilomreters)

Sectors Total Road Construc- Better- Paving CostLE_l__th tion mrent (0005°)

1 Chillan (East) 1f5 11 126 - 9402 ChilJn ('iest) 333 io 277 - 2,5703 Coelemu 93 208 75 - 9144 Concepcion (North) 176 15 31 33 1,62L45 Bio-Bio Bridge - - - - 3,CCO6 Concepcion-Arauco 257 88 120 18 3,0257 Concepcion-Malleco 379 73 195 71 4,21L18 Concepcion-Yungay 1 50 l14 80 2,9669 Chillan (South) 206 314 78 15 1,900

10 Los Angeles 227 53 126 38 3,614811 Victoria/Lautaro 311 64 181 27 2,70312 Temuco 129 36 50 - 1,16013 Cautin (South) 3G3 61 172 13 2,5241I Valdivia (Korth) lf6 75 39 - 1,81515 Los Lagos (East-'Jest) 202 12 124 - 1,]5016 Los Lagos (South) l1 55 36 - 1,41517 Rio Bueno 6 28 58 13 84018 Osorno (Southeast) 15 3 142 - 63819 Osorr.o (East-iest) 196 17 128 34 1,58120 Osorno (North-South) lbS 17 153 - 93021 Llanquihue (East) 136 38 97 149 1,38522 Llanqu'hue ('Jest) 38?h 148 221 2 2,69523 Chiloe 219 116 54 _ 2,136

000US $equnv.

a) Total L;,738 954 2,526 393 65,800 143,619b Construction cnntinger.cy (2c of a) 9,160 8,724c) Total, inclucling costruction contingency 5h,96n 52,3143d) Real local currency cost (65% of e) ,7214 314,023e) Local cost contingency (1C% of d) 3,572 3>402f) Current local currency cost, including price

contir'ency 39,296 37514-5g) Foreign exchange cost (35% of c) 19,236 ).8,320h) Total cost, incltdlr-g constluction and

local price corntingencies 58,532 55,7L5

Table 6

CHILE

ROAD LESIGN STAIWIAUS FOR THE PROJECT

Typr. A Type B Type ,

Design Sneed (in kvi/h)

flat terrain over 90 over 70 over 50rolling terrain 63 L9 35mountainous terrain 16 35 25

Minimum Radius of Curvature(in mY)

flat terrain 300 150 100rolling terrain 150 80 50mountainous terrain 75 LO 20

Minimum Sight Listanceon Flat Terrain (in m) 90 60 35

Gradients (in %)

maxi.mum 8 9 10normal 6 7 8

iWidths (in m)

embarkient 10 8 6cut 12 9 7carriagewxay 6-7 6 4

Mote - The quality and thickness of base and sub-base are to be determinedby C.E.P. tests. Usual sub-base th-ickness is 0.10 x in the case of aconcrete pavement, and 0.20 m. for gravel or crushed-stone surface.The usual ba)e thickness is 0.15 to 0.2'0 m. for gravel or crushed-stone surface. All bridges wxill be US. AASHO H-15.

Table 7

CEHILE, j'CKTR!EPe ZONE

A G---2 C .'L T P-CL,CT '0_0Present Production aria Plavred ' ProouctAon Targets

Production Planr.ed Perc.!.tage increase in:Thousand tcns* Area or Tctail

Crops 19'9 1968 Ilo. Anim.al Yield Product-'on

iheat 687.29 1,G50.70 26.0 21.1 52.90at-, liO.4L 19L.35 39.7 26.1 76.0Rica 5.71 1O.C0 29.0 35.9 75.1Barley 19.01 3h.62 62-9 11.6 82.1Corn 1o.h6 28.76 88 .5 146.7 175.0Sugar Beet 239.47 b79.96 71.h 16.7 l00.4Peas 8.20 19.08 83.2 22.1 132.7Kidney Beans 22.17 37.15 33.0 26.8 67.6Lentils 8G29 20.66 102.3 2344 1L9.2Potatoes b16.68 682.00 43.0 1l45 63.7Rape Seed 17.67 57.52 136.2 37.3 225.5W,1ines 0.57 0.95 3h.7 23.5 66.7Truck Crops 125.32 181.C0 - - U.4Fruit 62.29 86.98 - - 39o6Lumber 5h6.CO 63.-CC - 54-2llood Pulp 590.00 1, C05.C0 - - 77.1

Livestock

vilk !32. 30 1,OL.u3 91i.2 23.9 140.70ioo1 2.h0 2.00 37.0 ?L.0 66.7Beef 159.4O 261.78 L6.7 _ 6h.2Mutton 14.87 24. L4 37.0 - 6L.4Pig Meat 34.47 804.1 14 t3. _ 133.b

* Except for production of lurrber and wcoa pulp given inthous and cu. m.

VALUE OF AGPICULT11AL, FORESTRY AND LIVESTOCK PROIXJCTION Table aIIJ 1959 AND AS ESITIFATED IN 1968 UNDER DEVELOPHENJT PMGRAM

VALUE IN 160 PT ICES FCk PRODUCTS(in escudos'000)

Agricultural Product,s Forestrr Livestock Total

Per Cent Per sent Per Cent Per Cent

rovince 1959 1968 Increase 1959 1968 LnMxase 1252 1968 increase 1959 19 6 8 Increase

able 17,125.0 30,668.7 79.1 631.6 1,279.4 102.6 9,031.9 17,171.5 90.1 26,788.5 49,119.6 83.4

onoepoion 4,303.3 7,269.8 68.9 2,036.0 4,880.0 139.7 ',021.4 6,465.2 60.8 10,360.7 18,615.0 79.7

Lo Dio 9,641.i 14,458.3 50.0 667.1 1,808.4 171.1 7,775.7 15,084.7 94.0 18,083.d 31,351.6 73.4

rauco 2,491.7 5,777.4 131.9 206.9 556.3 168.9 3,181.7 8,193.4 157.5 5,880.3 14,527.1 147.0

alleco 10,496.1 16,379.2 56.1 1,064.0 1,953.4 83.6 6,912.9 11,111.8 60.7 18,473.0 29,444.4 59.4

autin 22,729.6 36,763.2 61.7 2,142.4 2,142.4 - 18,660.7 36,664.2 96.5 43,532.7 75,569.8 73.6

Lldivia 13,393.9 20,612.3 53.9 7,008.0 8,640.3 23.3 17,188.1 33,061.4 92.4 37,585.0 62,314.0 65.8

sono 9,197.4 14,216.9 54.6 532. 532.3 - 13,853.5 26,422.4 90.7 23,583.2 41,171.6 74.6

lanquihua 11,570.7 17,449.5 50.8 429.2 429.2 - 12,164.5 25,006.2 105.6 24,164.4 42,884.9 77.5

hiloe 4,025.5 6.347.6 _j 584 5 __ 8 4 .k - 3.945.7 8.389.6 112.6 8.555.7 15.321.7 7.3%1

Total 104.974.2 169.943.1, 62 159 3 22.606.2 49 36.1 18_.NA O7.00. 3 _~~~~~~~~~~~~X. 22__. 21.

C-ILE., SO'JTRERN ZONI Table 9

PROVINCIAL PRODUCTION IN RELATION TO COIFSUbIPTION(tons)_

Ieat Defi-Province Cereals Legumes Potatoes Fruits iilk on Hcof ciency Surplus

Nuble +32,207 +5,469 -22,660 -4,788 -21,303 +584 48,751 38,26oConcepcion -77,559 -3,889 -66,350 -19,742 -57,681 -14,414 241,635 -Arauco -3,178 +21 -3,E86 +3.683 -4,6L4 +999 11,708 4,703Bin Bio +21,150 +6,893 -13,881 -7,877 +25,315 +2,016 26,758 55,374I4alleco +5h,564 +2,579 -14,754 -5,121 -8,252 +2,393 28,127 59,536Cautin +117,507 -2,837 -31,575 -13,123 +2,949 +9,217 147,535 129,673Valdivia +59,3c5 -2,564 +382 -8,L46 +36,L97 +9,610 11,010 105,794Osorno +52,266 -1,613 +10,991 -5,C65 +57,258 +8,'30 6,678 129,445Llinq7uihue +1&,703 -2,C67 +78,678 -5,700 +43,517 +6,523 7,767 147,821Chiloe -ji770 -1,437 +19,7149 -4,039 -9,841 +1,120 29,137 20,869

Total 459,.C6 69.°475

+ indicates production in surplus of consumipticn.

- ndicates deficiency in producticn rcquired for consumption

C h I L E

MAiJOR iAGRICULTURAL TiHPORTS, 1958-1959Ratio of

Inir!orts Domestic Domestic Imports toYear Product Value Tons Production :x^-orts ConsumDtion Consumption

US$ '0o0 Tons Tons Tons %

1953 Sugar 18,082 124,624 31,426 _ 156,050 79.9Tt sheat 2,217 29,585 1,306,355 _ 1,335,940 2.2Cotton 11,099 14,079 _ - 14,079 100.0Meat:1 6,810 23,155 227,C60 2,403 247,812 9.3Tea 10,328 10,519 - - 10,519 100.0

U Oils 7,603 20,806 16,500 - 37,306 55.8Milk-/ 9,393 225,200 733,6fJO - 958,800 23.5

H Fiour 1,635 11,1?6 572,C56 - 583,232 1.9Mate 4,352 11,915 - - 11,915 1C0.0Fruit 1,359 14,210 231,c000 2e,682 266,5,!8 5.3Fats 2,537 8,473 25,700 - 34,173 24.8Coffee 5,328 5,462 - - 5,463 100.0

1959 Sugar 10,664 101I736 49,587 - 151,323 67.2Wheat 10,309 136,511 1,245,335 - 1,381,846 9.9CottQn 8,697 11,808 - - 11,808 100.0Meatsy 8,137 26,053 217,763 2,766 241,050 10.8Tea 7,478 7,263 - - 7,263 100.0Oils 6,056 19,192 23,700 - 42,392 44.7Milk2/ 5,944 156,500 731,100 - 837,600 17.6Flour 4,13? 27,374 646,400 - 673,774 4.1Mate 3,175 9,618 _ - 9,618 100.0Fruit 3,(27 30,560 289,900 19,770 300,690 10.2

U Fats 2,872 8,72.5 25,500 - 34,225 25.5Coffee 1,525 1,978 - - 1,973 lCO.0

/ Dressed weight.?2 Powdered milk, cheese and butter in terms of whole milk.

o-'0

AA K BO L O V 0 A

~~ N

XNOFAGASTAI

*~ (.

/ / ~~GENERALLA SERE } MAP

VALPARLSC

Scr A,.r NTIAGO

PTO 84

PTPTO AYSEN

I l -- i>vAJ @e ty-S

LINARES \

9 I~~~~4

r.C ,a t

ANGN

SOUTHERN CHILE

ERTO ~ROAD NETWORK

\.>t~~~~~~~~~~~ 50 . 0 \

P% Pannrneriean

> - - Provincial bouTn,,_ <'rD-,6

;~ 961, '8.. iC j9- 6 UQIT6