RESTRICTEDFILE COPY Report No. AF-39a

This report was prepared for use within the Bank and its affiliated organizations.They do not accept responsibility for its accuracy or completeness. The report maynot be published nor may it be quoted as representing their views.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

INTERNATIONAL DEVELOPMENT ASSOCIATION

REVIEW OF 1965 - 1968 DEVELOPMENT PLAN

TUNISIA

VOLUME VI

Transportation

and

Communication

November 22, 1965

Africa Department

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CURRENCY EQUIVALENTS

Prior to September 1964 U.S. $ u .420 Dinara

Since September 1965 U. S. $ a . ZZ5 Dinars

TRAMSPORTATION AND CO114UNThCATION

TABLE OF CONTENTS

Pag eA. INTRODUCTION4 1

The Over-all View 1Investments 1Major Transport Problems 3

B. HIGHWAYS 6

The Road System and Classification 6The Highway Department 7Design Standards 8Road Construction I-ethods 9Road Maintenance 9Road Construction and Maintenarice Costs 10Highway Receipts and Costs 10HighwJay Planning 10Development Plans 11

C. ROAD TRANSPORT INDUSTRY 13

General 13Government Autlhority 13The Road Transport Fleet 1The 1965-68 Four Year Plan 14Public Road Transport Organization 15

D. RAILWAYS 16

General 16The National Railways (SNCFT) 17The Sfax-Gafsa Railroad 19

E. SEA PORTS AND I4ARITIE TRANSPORT 20

The Ports and Port Organization 20Traffic 21The Tunis-La Goulette Port Complex 22Investment Plans 22The Marine Service (Coast Guard) 23The Compagnie Tunisienne de Navigation (CMT) 23

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Page

F. AIR TRAMSFCRT AND METEOROLOGY 24

Organization 24Air Traffic 24Investments 24The Tunis El Aouina Airport 24Tunis Air 25Meteorology 25

G. POSTS AND TELECOI-21ITICATIONS 25

ANNEX 1. Transportation, Storage and Communication.Share in GDP and Gross Fixed Capital Forma-tion. An International comparison.

ANNEX 2. Output and Consumption, Based on the Input/Output Tables in the Four.-Year Plan (1960Prices).

ANNEX 3. 1965-68 Four-Year Investment Plan.

ANNEX 4. Highway Department Budgets.

ANNEX 5. Road Construction and Maintenance Costs.

ATNNEX 6. Highway Investment Program. Performance Underthe 1962-64 Three-Year Plan.

ANNEX 7. ]iighway Investment Program - 1965-68 Four-YearPlan.

ANNEX 8. Number of Motor Vehicles in Tunisia.

ANN1EX 9. Public Road Transport Companies - CostStructure (1964).

ANNEX 10. NIational Railways - Summary of FinancialResults.

ANNEX 11. National Railways - Rail Traffic and ReceiptsFrom Traffic.

ANNEX 12. Railwtays - 1965-68 Four-Year Investment Plan.

ANNEX 13. IIaritime Traffic - Tunisian Ports

ANN,EX 14. Port Investment Program. Performance Underthe 1962-64 Three-Year Plan.

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ANNEX 15. Port Investment Progran - 1965-68 Four-Year Plan.

ANNEX 16. Principal Tunisian Airports.

ANiEX 17. Tunis Ea Aouina Airport - Passenger Traffic.

ANNEX 18. Tunisian Airports. Investment Plans.

ANIEX 19. Pcst and Telecommunications Investment Program -1965-68 Four-Year Plan.

IV. TRANSPORTArTION AND COW3UNICATION

A. INTRODUCTION

The Over-All View

1. Tunisia has a relatively good and extensive highwaynetwork, four najor sea ports, railways covering the northernand central part of the country; and a few domestic air con-nections. Thistransport infrastructure, if well managed, issubstantially adequatk L-; meet the country's transport devel-opment needs. Cnl ;:u.ar-inal or incr.mental imnprovements areneeded in the 1965-63 Flan Period.

2. Railway construction was started in 1876. Lines inthe north provided an integrated transport system betweenTunisia and Algeria; other lines connected mining and agri-cultural production centers to sea ports, and provided com-munication along the northern and central shoreline. in rmorerecent years there has been a rapid expansion of the highwaynetwork. Relatively low construction costs, due to physicalcnnditions, and government policy to build roads by establisheddepartment forces, provided a stimulus to build and improveroads intensively. The Government has large control over railand road operaticns which is not alwa.',Ts cornucive to prontlotesound trans ort con.,etition an: eificient trzansp)ort P.anagerent.Also, paoiLic attitudes are in general .ore favorable to roads-ilan to ri:filways; the latter are often being regarded asinefficiant and deficit-genera-in. .lode of trans ort-. Thuswhile raiLway equipment - an: the. road traansport fleet -are wearian out, road. tend.tD bc averbailt.

3. One change in the administrative setup occurred whenthe major ports recently came under the management of anautonomous oort authority established with the assistance ofIBRD.

4. Transport and communications as a sector makes animportant contribution to the economy. Tne value added toGDP averaged 7 percent over 1960-63. No significant changefor the sector's share in GDP is expected over the 1965-68period. No significant shifts have taken place within thesector in recznt years. an-- none a-re eypected for 1968, thes-ar- of eaca. subsector remainir5: road transport, 33 percent;railways 28 percent; rnlariti:o tracks ort 6 percent; air-as 6percent; p?rts 15 percent; Post rnci Telecommunications 12 percent.

Investments

5. It is difficult to appraise past investments in trans-port in Tunisia. The investment program scheduled under the1962-64 Plan was not rigorously adhered to; some of the original

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projects were abandoned and new ones initiated. In manycases, budget allocations were committed and not used for theproject involved, in other cases expenditures exceeded allo-cations, in some cases payments were made on projects whichhad no allocations. Assessment of the investment problemis also obstructed by the lack of basic traffic andother information. -Ioi:ever, the sector's share ofgross fixed capital formation, amounting to about 11-1/2percent over 1960-64, appears to have been on the lowside as compared to many otnier countries. This probablyreflects not only that Tunisia's transportation network isalready reasonably well developed, but also that investmentin transport equipment (motorcars, etc.) has been inadequate.(See ,nnexes 1 and 2).

6. The 1965-68 Plan envisages investments in transportand communications amounting to Dinars 55 million in netinvestments and to Dinars 67 million in gross investments(See Annex 3). lWnile the total amount of investment isprobably reasonable in view of over-all traffic needs, the Plantsprovisions for replacement are obviously insufficient. Onthe other hand certain economies seem possible in investmentsplanned for new projects. The mission suggests that this matterbe carefully studied, taking into account some of the specificsuggestions contained in this report,

7. As described in the Plan, all road and bridge projectsare related to projects in other sectors of the economy (agri-culture, industry, tourism). Their justification thereforecannot be arrived at independently. The mission could notalways clearly ascertain the criteria used by the HighwayDepartment for the classification of the various roads underthe sector headings concerned; some of the roads in theprogram should probably be considered general rather thanspecial purpose roads. The urban development projectsincorporated in the Plan will require further investi-ation bycompetent consultants in order to study their economicjustification and to prepare the necessary engineering designs.

8. The most important commercial port project, La Goulette(Tunis), is already under construction with the help of IBRDfinancing. Another important project would be the commercialport of Ghennouch (Gabes), as a part of the proposed chemicalcomplex at the same place. The construction of the new fishingport at La Goulette, for which financing is expected fromEurope, is also planned. Among the less urgent projects shouldbe mentioned the fishing and com,mercial port of Tabarka.Important amounts are allocated in the plan for the purchaseof ships for the Compagnie Tunisienne de Navigation.

9. The main item in the airport projects is the terminalbuilding complex at the Tunis El Aouina airport. Ihe justificationof this project prepared by consultants on the basis of itsexpected financial returns, seems of a doubtful character fromthe point of view of the national economy. Important amountsare allocated in the Plan for the procurement of additionalairplanes for Tunis air.

10. Railway investments are primarily for replacement ofrolling stock and track, although they are shown in the Planunder the heading of net investments. The replacement pro-visions seem insufficient; the mission generally feels thatmore attention should be given to modernization projects toimprove efficiency.

11. Major projects in telecommunications include the cableTunis-France, and the new inland cables. The telecommunica-tions program must be considered as flexible; the investmentsconcerned can, if necessary, easily be adjusted in scope andtiming to changes in budget allocations.

12. About 31,000 people are employed in transport, ac-counting for 2-1/2 percent of the total labor force in 1964.Employment in the sector is expected to increase at thesame rate as the total labor force, i.e. by 10 percent during1965-68. On the basis of a planned 33 percent increase inthe value added by the sector, an increase in labor producti-vity of about 20 percent is thus implied by the Plan projections.

Major Transport Problems

Introductory Comment

13. 'he following discussion on Tunisia's principal trans-port problems is the result of the evaluation of informationcollected by the mission during its journey in 'Y'unisia.The amount of information received in the various fields wasnot even: in some cases comprehensive data could be obtained,in others only scarce indications. This uneveness of informationis reflected in the report; more attention could be given tothemes for which documentation was more abundant.

Personnel

1I. Executive and managerial positions are filled bysmall but capable staffs. however, there is an acute shortagefor specialized personnel (administrative, accountants, foremen,etc.) below the management level. Skilled labor is also aproblem, especially in Tunis where alternative job opportunitiesin other sectors are often more attractive. Training programsexist, but they are hardly sufficient to fill skilled laborneeds. Rigid salary policies in the public and semi-publicsector make it difficult to retain skilled manpower.

Cost Accounting and Control

15. Accounting procedures of the administration areprimarily designed for budgetary purposes. or in the case ofthe public and semi-public transport enterpiises, for bookkeeping.Nc records exist by which expznditures can properly be chargedagainst various operating functicns. Therefore, no adequateknowledge of real transport costs exists. Tnis deficiencyhas over the years obstructed tariff setting, transportcoordination and investment planning. Also, the respon-sibilities for spending budget funds and for controllingbudget expenditures are not clearly separated in the admi-nistration.

Condition of Facilities and Equipment

16. There is progressive antiquation of the facilitiesand rolling stock of the national railways, and of theroad fleet. A lag of about 10 years exists in rail renewal,and 65 percent of the national railway's freight cars are35 years old or older. The workshlops of both the nationaland Sfax-Gafsa railways were only partially re-adapted todieselization when this mode of traction was introduced.The average age of the road fleet is high, many vehiclesbeing older than 10 years. This trend toward antiquationis, of course, dangerous because it increases transportcosts unduly; ultimately the transport sector will no longerbe able to meet efficiently the requirements of the oconomy.

17. Efficient use of facilities and equipment is also madedifficult because of the lack of standardization. Attemptsto standardize equipment have in recent years often beenhampered by Drocurement being deterrined by source of finance.

Data Collection

18. Information on road traffic is nonexistent, andstatistical information on the road fleet is inaccurate.As the Highway Department does not collect transport statis-tics at all, and as no adequate knowledge exists on over-alltransport costs, sound investment planning is difficult.

Tariffs

19. Both rail and road tariffs, which are obligatory,were fixed in the 1950's and have been frozen since. Thetransport enterprises know little about the relationship oftransport costs and prices; consequently, there exists noinsight into the adequacy of the rate structure. The inflexi-bility of rates hampers sound transport competitions retardsincentives for efficient management, and discourages operationof transport enterprises in a businesslike manner.

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Transport Policy and Coordination

20. The Govermnent, which is responsible for transportpolicy, is in a position to influence investments, ratestructures and transport regulations so as to try to mini-mize real national transport costs. Unfortunately Tunisiadoes not yet appear to have an explicit policy toward trans-port coordination. Thought needs to be given to the natureand scope of government action which could encourage theallocation of traffic to the most efficient transport modes,and eliminate unnecessary red tape in transport management,inadequate tariff structures, duplication of infrastructureand cperaticns, etc.

Transport Planning

21. Transport investments in Tunisia have not been basedon a systematic transport plan which takes into account needsand resources on a national scope. Even in the selection ofindividual projects, the systematic comparison of costs andbenefits to assure that a reasonable rate of return on theinvestments concerned can be expected is in general notsufficiently practiced. Planning of road construction inTunisia usually proceeds from lists of desired projectsestablished by local authorities and submitted to the centralgovernment for budgeting. In appraising them the dynamicapproach of the H-Iighway Department aimed at generating workfor its forces seems to play an important role. The rail-way administration tends to refrain from taking long-rangeprospects into consideration, restricting themselves tobare upkeep of the existing operations. The public roadtransport companies have been created only recent:Ly andfor that reason do not yet have estab.ished any traditionor methods of planning.

Recommendations

22. Officials in the Government are generally aware ofmost of the critical problems in transport, and stronglyfeel the need for a more systematic approach to planning,and for a reassessment of the role of the central govern-ment in the management of the transport sector. Theirapproach is substantially pragmatic. The need for basicinformation and studies to guide their decisions towardrational solutions is also recognized; some of these studiesare now being initiated, but foreign assistance is neededto help coordinate them and carry them out properly. Forthis purpose the mlission suggests as its most importantrecommendation of a long-term nature with respect to thetransport sector that Tunisia obtain competent foreignassistance in order to help develop a Hlaster Plan for trans-portation. Such a plan should focus on the follcwing majorareas:

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1. A long-term investment plan based on the natureand volume of traffic which the future economicdevelopment of the country will involve, and onthe allocation of traffic to the most economictransport modes. Such a study should also out-line frcm the above plan specific projects to becarried out in the short run.

2. Recommendations to improve the Government admi-nistration of transport, including especiallythe organization for transport planning.

3. The improved management and operation of varioustransport enterprises.

B. HIGHIAYS

The Road System and Classification

23. The development of the Tunisian road system formotor vehicle use originated in tne 1890's, parallel withthe country's economic revolution at the end of the 19thcentury. The first cycle of road expansion ended in thesecond decade of the 20th Century; at that time the roadsystem comprised 1,100 kms. of macadam roads and 2,600 kms.of earth roads and trails. A new period of expansion andmodernization of xoads took place in the 1930's and continuedup to the present. This period is characterized by the exten-sive bituminization of roads, at a steady rate of about180 kms. per year, and a sharp increase in the total lengthof feeder roads and trails. The present road system consistsof 6,650 kms. bituminized roads, 1,100 kms. macadam roadsand 7,800 kms. earth roads and trails. (total 15,550 kms,see map 1)

24. The classification of roads is closely related tothe country's administrative subdivisions, rather than totraffic densities or standards. A Grand Parcours (GP) net-work, connecting the main administrative centers, is inter-woven with Moyenne Communication-(MC) and Route Vicinaled'Etat (RiVE) networks. The Highway Department is responsiblefor the whole road system; municipal authorities are respon-sible for urban networks, but they often rely on the assist-ance of the .Uepartment. The national road system covers thewhole country with the exception of the southern desert part.The highest road densities are found in the north and alongthe Sousse-Sfax-Hedenine-Ben Gardane coastal strip. Theseregions, with about 60 percent of the total population, accountfor about one-third of Tunisia's total area. A comparison ofratios of cars per km. of road and kms. per population withother Mediterranean countries provides a-useful. perspective:

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No. of Cars Kms. Road perCountry Per Km. Road 1,000 Inhabitants

Tunisia 4.7 3.7Algeria 2.7 6.8Morocco 2.9 4.4Spain 8.5 4.2Yugoslavia 2.1 3.2Greece 1.8 1.8Syria 3.7 1.8

The Highway Department

25. Organization. The Highway Department comes under theauthority of the State Secretary for Public Works and Housing.The Department is headed by a Chief Engineer; it has centraldivisions in Tunis and 16 regional subdivisions located inthe various administrative centers of the country (see Orga-nization Chart). The Chief Engineer is also in charge ofthe construction of airports and seaports (except the portswhich were recently transferred under the National PortAuthority). An Economic and Technical Studies Divisionhas recentLy been authorized but is not yet staffed; theDepartment contemplates engaging consultants to assist inthe economic planning and feasibility studies of road invest-ments.

26. P•rs:nrrel. Pres;n'b r hfJ.:- i rsonnc-i co..-rises abc-at SOen-ineers, 0t iciari, 236d L,300 worker2,. >:ei lde aiwtiana-gcria opositiOns are filled by a carle biDt s,all s.i`L. In 1961,the number of workers was about 5,50O, since then it has pro-gressively decreased, but the Department still considers theirnumber on its payroll to be excessive. Also, the compositionof the Eepartment's personnel gives rise to concern: thereis an acute shortage in skilled labor while a surplus existson the unskilled labor side and there is an obvious lack ofspecialized personnel to fill the gap between managementand workers (adiinistrative personnel, accountants, foremen,etc.). The Department has an extensive program forpersomnel training, designed to fill its skillec laborneeds, but it has serious difficulties in retaining thepersonnel once it has been educated and trained. With itsrigid administrative rules and tight salary policies, thechallenge arising from other sectors of the economy, parti-cularly in the Tunis region,cannot easily be met.

27. Budget. The bud-ets oi thel HiLi2may Deprtmn-lnt havc heen rela-tlv&iy stable in recenL ;&rr, oscillaiing arounc Dinrar. 44 r.lIlion

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per year, figures supplied by the Department for 1961-64 areshown in Annex 4. The budget is divided into operating andcapital budget, but in practice there is no clear cut de-marcation in the use of funds. The operating budget hasinsufficient provisions for equipment renewal f'or which an esti-mated amount of about Dinars 0.5 mil'Lion per year would be needed;renewals are often financed from special funds, such as foreignaid, and no appropriate share is charged to the Department'soperating budget.

28. The total expenditures of the Highway DepartMent accountfor about 5 percent of the national budget. This is a cormpara-tively low figure, rei'lecting the fact that the highway systemis relatively well developed and needs only marginal expansionand modernization work at this time.

29. Road Equipment and Equipment Shops. Since 1945, whenprocurement of road construction and maintenance equipment ona larger scale began, the equipment stock has progressivelyincreased. Purchases between 1959 and 1964 amounted to aboutus $ 4.4 million equivalent, and recently Tunisia has obtainedaid from the United States irn the amount of US $ 6.8 millionequivalent for further equipment purchases. The est;imatedreplacement value of the present equipment is about US $ 12million.

30. The "Atelier Mecanique des Fonts et Ollaussees" (AfSPC), adivision of the Highway Department with headquarters and shopfacilities in Tunis, has responsibility for procurement, majorrepairs and supervision of use of equip,aent. The AiJPC leasesthe equipment to the various users and collects rents. Operationof the AlIPC has been under study for several years by consultants,and their recommendations are now being imnlemented. TheDepartment expects that by the end of 1965 the AH4PC will be re-organized into an autonornous government enterprise, having itsown analytical accounting systerr, wit'h rental rates beingrevised to reflect service costs. It is expected the AJPC willfrom then on be capable of paying its own way.

31. Operation of the shop facilities and yards in Tunis isefficient. To save foreign currency, the shops are embarking onthe fabrication of parts, and also are planning to assembleequipment on an increasing scale.

Design Standards

32. A large variety of road types exists in Tunisia,ranging fronm the rou,gh 3ahara trail to the four-lane high speedhighway. Geometric and st-uctural standards of both earthroads and bituminous y)aved roads vary largely. The lackof homogeny of standards reflects perhaps the fact

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that, in the early stage of road development, empirical methodsof design and construction prevailed. For new construction, theDepartment endeavors to apply French and US design methods. However,no attempt has yet been made to define standards most suitable tothe country's physical conditions and traffic needs, and firm guide-lines for uniform planning and design have still to be developed.

Road Construction Methods

33. Construction methods follow modern engineering practice.It is the traditional policy that only work beyond the capacitiesof the Departments, primarily bridge construction and urban roads,is delegated to contractors. About 90 percent of the constructionprogram has been carried out by departmental forces in recent years.Since road construction activity is expected to increase in the Four-Year Plan period, the share of work performed by contractors shouldalso increase to perhaps as much as 50 percent. As the existing roadconstruction industry is not likely to be able to cope writh such anincrease of workload, part of the work will probably have to go toforeign contractors.

34. Much of the work is mechanized and plans are to increasemechanization further. Before adopting a general policy toward themechanization of road work, the desirab'le degree of mechanizationtaking into account technical, economical and social factors should,in the mission's view, be further studied.

35. The Department estimates the average foreign currencycomponent for departmental works at 33 percent, as against 46 percentfor work done by contractors. The principal items to be importedare equipment and spare parts, fuel, wood, steel and bitumen.

Road Maintenance

36. The Department's regional subdivision forces areresponsible for maintenance as well as for new construction.Maintenance is interpreted in a very broad sense and includes, inaddition to day-to-day routine maintenance, substantial better-ment and improvement work. In recent years, an average amountof about US$ 430 equivalent, including equipment depreciationwas spent per km. per year for road maintenance; this seems ade-quate for routine maintenance, in order to protect the investmentin roads, but not quite sufficient to cover periodic maintenanceand betterment works. The general condition of the roads is good.

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Road Construction and Maintenance Costs

37. The Department does not have an analytical accountingsystem by which expenditures could properly be related to thevarious operating functions and items of work; systematic infor-mation for cost estimates is therefore lacking, except that nowbeing initiated at the equipment maintenance shop (AMPC). Costfigures used by the Department are only rough estimates; some ofthem are shown in Annex 5, It may be noted that figures for main-t6nance appear to be reasonable for routine maintenance but notentirely sufficient to cover also periodiz maintenance. Figuresfor new construction appear to be too low.

38. Due to favorable physical and climatic conditions, roadconstruction and maintenance costs in Tunisia are comparatively low.In the northern part of the country, costs are relatively higher be-cause the natural construction materials are of a lower quality and

precipitation is heavier. In budgeting construction projects, costsare usually estimated from per km. lump sum costs determined after apreliminary reconnaissance and without detailed engineering; then, inthe course of construction, if necessary the scope of work is arrangedto fit the available funds.

Highway Receipts and Costs

39. Government receipts from road users accrue from numerousduties, fees, and taxes placed on motor vehicle ownership andoperation. It is estimated that these receipts amount presentlyto about Dinars 16 million per year. As an order of magnitude, theserevenues cover about twice the highway costs as measured by administra-

tion and maintenance costs, and depreciation and interest on the totalhiighway investments. If receipts from road users were to balance high-way costs, user taxes could be reduced. Presently, taxes representabout 30Opercent of trucking costs.

Highway Planning

4o. The labor policy of the Government has had a strong influenceon highway programs. Upon independence in 1956, complying with thecountry's general move to stabilize labor and to provide full employ-ment, the Highway Department committed itself to the employment of alarge number of previously seasonal workers. This labor force wasorganized into so-called regional squads and national work batallions.Simultaneously, the Department pursued an active policy of mechani-zation of works The result was a road construction plant of con-siderable capacity if fully employed. This has exerted a strongpressure on the management to recommend the necessary funds andwrork opportunities to keep itself in action, and in consequence hasinfluenced road construction and maintenance planning in recent years.

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41. The Department does not, and did not for a longtime, collect and process information for economic highwayplanning. No traffic ccunts are available, and noreliable cost studies exist. Usually planning of roadconstruction proceeds from lists of desired projects esta-blished by regional authorities and submitted to the centralgovernment for budget allocations. The tradition of keeping

th2e 1partment construction cepacity occupied played an inportantrole in the planning process; oftern little or no attentionwas paid to economic justification of projects. The autho-rities concerned have come to appreciate, however, the needfor changing methods in order to arrive at more rationaldecisions regarding road investments. This concern isreflected in the selection of projects in the Four Year Plan:road projects have, more than before, been ted to thedevelopment of other sectors of the economy. Roads wereclassified as agricultural, industrial or touristic roads.The mission could not always clearly ascertain the criteriaused by the Highway Department for this classification andbelieves that some of the roads in the program are probablygeneral rather than special purposa roads, For instance, itis doubtful that the Sfax-Gafsa arterial road is a typicalagricultural road, or that the Nefta-Hasuana section of thetranssaharian road can properly be considered as a purelyindustrial road.

Development Plans

42. The 1962-64 Three Year Plan. The total cost of theprojects originally incorporated in the 1962-64 highway con-striction program was estimated at about Dinars 3 million for thecontinuation of previous worksand Dinars 2.3 million for newprojects. It was estimated that actual expenditures duringthe three-year period would amount to Dinars 3.4 million.In fact, however, in the course of the execution of the Plan,additional new projects (total cost estimated at Dinars 2.9million) were also started. Budget allocations were augmentedto Dinars 4.7 million and an emount of Dinars 4.6 million wasspent. Expenditures exceeded allocations on many projects;differences between allocations and actual costs were compen-sated by shifts in the annual budgets. (see Annex 6).

43. Physical execution of the projects was hampered byinsufficient project preparation and under-estimation of costs.Several projects have been revised. As a result, part of theprojects had to be postponed or carried over to the 1965-68Plan or later period.

44. The Four-Year Plan. Planned investments in the roadsystem in the 1965-68 Plan amount to Dinars 104.5 million innet investments and to Dinars 4,6 million in replacements.

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Details of the Plan are shown in Annex 7. Compared to theperformance achieved under the Three-Year Plan, the new pro-gram implies an increase of 70 percent in the average yearlyexpenditures in net investments.

45. The total length of new roads to be completed in theFour-Year Plan is about 550 km; the bulk of this is classifiedas agricultural roads. In the Plan, Dinars 2 million is al-located for the continuation of road construction started before1965. However, some of the items listed as new road projects inthe Four-year Plan are, in fact, continuations of projects startedbefore 1965 as well. The total amount allocated to road projectscarried over from previous periods can be set at Dinars i.2 million.

46. Economic and engineering studies have not yet been madefor the new projects, except that engineering studies for twonew roads are now in process. Execution of part of the programwill therefore probably have to be delayed because of insufficientproject preparation. The staff of the Highway Department is toosmall to cope with the new workload resulting from the Plan, andis endeavoring to secure the assistance of consultants for economicstudies, engineering and design.

47. It is practically impossible to draw up a priority schemeamong the projects. As already stated under Highway Planning,the economic justification of the projects is not clearly establishedand requires further careful study.

48. As a result of lack of engineering studies and costanalyses, cost estimates are uncertain and costs appeargenerally to have been underestimated. Estimates relate todirect expenditures of departmental work without meetingprovision for general administration, engineering and super-vision of construction or including allowances for physicalcontingencies or price escalation. The recent devaluation ofthe dinar has not been taken into account in the prices either.The difference between estimated costs which appear in thePlan, and actual costs, is thus likely to be substantial.

49. It can roughly be estimated that the total roadmaintenance costs should increase by about 10 percent afterexecution of the new road projects.

50. The bridge program of Dinars 1.8 million is almostcompletely related to the road building program. Only aboutDinars 270,000 are allocated for a separate purpose (thereconstruction of structures damaged or destroyed by floods).

51. The most important urban development projects are forTunis and Kairouan. In view of the size and specific natureof these projects, the use of consultants will be necessary tocarry out engineering preparation and design, to obtain theinformation required for a full economic appraisal and -

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ultimately - for supervision of construction. The Governmentis seeking foreign assistance for the financing of thesestudies, and ultimately for the construction as well. lJ

52. An amount of Dinars 4 million is included in the Planfor the renewal of road construction and maintenance equirment;as mentioned earlier, a US financing of about US$ 6.8 rnailionequivalent has already been secured for this program.

53. Under the heading of Ferries and Port Equipmentprovision is made, as an interim solution awaiting theconstruction of a road tunnel, for the replacement of one ofthe ferries at the canal of Bizerte. Studies for the tunnelwere carried out in 1960 by consultants who concluded theproject was cconomically feasible and suggested 1969 as theoptimum year for opening of the tunnel. The consultants'study should now be reviewed and updated and evaluated in thecontext of the general transport study which the missionrecommended earlier in this report.

C. ROAD TRANSPORT IDUSTRY

General

54. Road transport is made up of private transport and -

public transport. Private transport is performed by enter-prises whose main activity is not transport but who are entitledto carry their own goods by their own means. Public transportis made up of transport companies with the sole objective ofcarrying passengers and goods for third persons. In exceptionalcases, and under special license, private transport is alsoallowed to carry goods for third persons, - All public transportCompanies are fully government owned or :_ixed enterprises.Trucks owned by the public transport companios account foronly about 7% of the country's fleet, therefore, it can beassumed that the bulk of the road transport is still private.However, only very little infomnation could be obtainod onprivate transport.

Government Authority

55. The Service des Transports Terrestres (STT) under theauthority of the State Secretary for Public IWIorks and Housing,is responsible for formulating land (rail and road) transportpolicy in Tunisia. Its duties include, inter alia transport

lJ The access road to La Goulette Port which is part of theurban development program has a high priority; theGovernment is cormmitted to finance it from its owin funds.

coordination (inter-regional road transport, competitionroad-rail), tariff studios, assistance in investment plan-ning to the public road transport and railway companies,and the coordination of thc investment plans of tlesocompanies at the central lavel.

56. The Service is headed by an able but small suaff,which, however, is overburdened by daily administrativedutics. The staff necds outsidc assistance to heolp carryout basic transport studios noeded for docision mnaking.

The Road Transport Fleet

57. Statistics on the truck fleet are unreliable andconflicting. (see Annex 8); the figures belo-r are " guessestimates" based on whatever information was available:

Private Cars 46,ooo to 8,o000Motorcycles, Scooters 10,000Trucks lOjO00 to 16,000Autobuses lj300 to 1,40()Special Cars/trucks 1,200 to 1,500Trailers 2,000 to 2,500Semi-Trailers 250 to 350

58. Cut of this fleet, about 1,600 trucks are used byGovernment and about 830 trucks are in use by the public roadtransport companies.

59. The average age of the fleet is high, but with asomewhat unusual distribution: while a large part of the fleetis five years old or less, an important part is older than tenyears and there are many buses and trucks even twenty yearsold and older still running; the number of vehicles betweenfive and ten years old is relatively small. Shortage offoreign currency has been the main reason for extending thelifetime of vehicles. The regional transport companies havebought in recent years secondhand buses in France (carsdloccasion). Haoever, the Government would noeTf like to renewthe vehicle fleet, and introduce larger trucks.

60. Traffic volumes of public transport have been advancing

rather rapidly in recent year~s. In tho twro year period 1962-6a,passenger traffic on the main national carricr wient up 9% peryear, and freight transport went up 4% per year.

Tho 1965-68 Four Year Plan

61. Investment in road transport under the Four-Year Plan

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has been set at D-nars 10.5 million. Investment in the vehiclefleet (trucks and buses) has been planned at Dinars 2.6 millionfor expansion and Dinars 6.6 million for replacement. Thisprogram is based on the assumption that an increase of 3 percentper year in the load capacity of the fleet should be adequate.In view of the expected over-all rate of economic growth, thisfigure appears to be unreasonably low. The 6 percent increasein capacity originally used by the STT is probably a minimum eventaking into account a possible improvement in trucking opera-tions. Experience shows that as per capita income increases, thevalue added by the transport sector tends to grow at a higher ratethan the rate of growth of GNP.

62. On the basis of STT figures of available load capacityand assuming a 6 percent per year increase, new investment shouldbe sufficient to allow for an additional load capacity of 5,900tons, to which would have to be added investments for replacementfor a load capacity of 7,200 tons. Taking into account the recentdevaluation of the dinar, the amount required for those invest-ments would be about Dinars 14 million. It should be noted thatnot all the public road transport companies will be able to covertheir investment needs from their own resources.

63. No mention is made in the Plan of the foreign exchangeneeded for replacements and increases in passenger cars. It isestimated that yearly replacements alone will necessitate aboutDinars 2.5 million in foreign currency.

Public Road Transport Organization

6h. After Tunisia gained independence in 1956, licenses forpublic road transport were given to veterans (anciens resistants),many of whom leased their licensos to others. Trucking becamecharacterized by a great number of small 6nd inefficient enter-prises. In 1962, the Government started grouping the scatteredtruck-ow,mers into larger and governuent-controlled transportccmpanies operating within each governorat. In Tunis twfo ccmpanies ]were established which operate nationally.

65. Bach governorat (except jointly in IMedenine and Gabes)has now a Societ6 R6gionale de Transport which is owned 51 percentby the Government and h9 percent by the former public transportlicensees. A Caisse Speciale de Compensation des TransportsRoutiers was created in 1963 to conpensate certain formerlicense owners and to provide assistance to regional companies:

g/ The Societe Nationale des Transport (SNT) takes care ofpassenger transport, and the Societe de Transports deharchandise (STM), handles freight.

- 16 -

financial aid for fleet renewal, pensions for retired workers,training and wTelfare programs. Each regional company contributesto the "Caisse" in proportion to fleet capacity.

66. No adequate knowledge exists in the new companies bywhich the cost of transport and thus the adequacy of the existingtariff structure can be checked. This situation can be partlyexplained by the fact that, when the companies were created,their first concern was to have their business moving, later on

to have commercial accounts on receipts and expenditures, andonly now are they embarking on collecting data on cost ofoperations. In addition the STT has engaged a foreign consultingfirm to analyze operations and develop suitable information forcost studies. It is interesting to note that in 1964, in spiteof the fact that tariff rates have been frozen since 1951, allpublic transport companies, according to the records provided bythe STT, were able to make profits.

67. The national and regional transport companies have eachtheir own wrorkshops, with a labour force that, on the whole,appeared to be qualified, disciplined and devoted to their work.Distribution of the shop facilities is uneven, however. Themission found, for instance, that the workshops of the STM arerather underutilized while the workshops of the SNT are congested.The equipment in both shops appeared adequate. In contrast, oneof the workshops of a regional transport company which wasvisited by the mission was poorly equipped and inadequately lodged.

Appropriate distribution of shop facilities with adequateequipment should be one of the targets of the future investmentplans.

D. RAILWAYS

2onaral

68. Tunisia has two separately operated railway systems, the

National Railways (SNCFT), a government enterprise, and therailway subsidiary of the Compagnie des Phosphates et du Cheminde Fer de Gafsa. The SNCFT operates on standard gauge (1.435 m.)for 482 kms and on 1 m. gauge for 1,030 kms; the Chemin de Fer deGafsa network consists of 455 kms of 1 m. gauge track. Thusthe total Tunisian system covers 1,967 kms.

69. The standard gauge lines lie in the northern part of thecountry and provide connection with Algeria; at present theselines are primarily used for domestic traffic. One main 1 m.gauge line serves the coastal region south of Tunis to Gabes, theother three main 1 m. gauge lines run from ports as branches ofthe coastal line westward to the inland. (see M4ap 2).

- 17 -

Tho iNational Railwrays (SMCFT)

70. Organization and Operation. The National Railways, startedin 1876 by a private company, were purchased by the State in 1922 butwith the former owner continuing to operate the railways under a con-cession. The SNCFT took over in 1956, when the concession expired.The company has commercial accounts, but its operation is subject todirect government supervision. Deficits on rail operations havebeen increasing since 1959. The main reason is that receipts haveremained substantially stable rhi.LLe expenditures have increased byabout 20 percent since 1960 (see Annex 10). Rail losses are com-pensated, in part, by revenues not directly related to railway opera-tions, and from government subsidies paid in accord with the Company'sarticles of agreement. A large part of the subsidy is offset by pay-ments by the SO4CFT of import duties, fuel taxes, direct taxes on trans-port, etc. For instance, in 1963 subsidies amounted to Dinars 663,000uhile taxes paid by the SNCFT are estimated at about Dinars 640,000.

n1. There are no accounts by which the level of the tariffs,.hich are fixed by the Government and have been in force since

L956 with only minor revisions, could be compared to the real3ost of individual transports. Tariffs appear low, comparedqith other countries in Afrlca. Occasionally, preferential ratestre imposed upon the railways by the Government, e.g., for regional(evelopment purposes.

T. Improvement of operations will depend on providing betterservices, by using more adequate pThysical facilities, and onpttting the railroad on a businesslike basis which presently ismade impossible because of the inflexibility of the tariffs andotier restraints.

73 Traffic. Passenger traffIc has increased rapidly in recentyears; the volume increased by 70 percent between 1958 and 196h andpassenger revenues rose by 60 percent which increased their share intotl revenues from 22 percent to 31 percent. Yining products makeup nore than half of the freight traffic; after a peak between 1958and L960, their volume decreased slightly and has since remainedrelazively stable. General freight increased until 1960 and fromthen on has also remained relatively stable (see Annex 11).

71. Track, Rolling Stock and Shops. The rail lines werebuilt with a close eye on initial investment costs which resulted

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in sharp curves, steep grades and lack of uniformity in railsand sleepers. Track renewal has not kept pace with wear of therail. Much of the track equipment is o'ld and obsolescence ofthe trackc hampers the imnprovement of services.

75. The average age of the rolling stock is high. On thestandard gauge section, about 65 percent of the freight carsare over 35 years of age, and :half are over 50 years, and noneare under 10 years. On the Im. gauge section, the situation iseven worse, with 60 percent of the freight cars being over 50years old. On both sections, about 35 percent of the passengercars are over 50 years old and only about 30 percent between 5and 15 years old. Dieselization of traction started about 25years ago with the purchase of autorails, and about 10 years agoon a larger scale with locomotives. The lack of uniformity inrolling stock creates problems in maintenance and stockage ofspare parts; attempts to standardize equipment are hampered byprocurement financed through tied loans.

76. The railway's central repair shops, located in Tunis,were built in the 1920's. The average age of machine tools is26 years, some machines are 40 years old or even older. lhenthe motive power of the railwlay was dieselized, the shops werereadapted to that mode of operation as best they could be.The intensive repairs needed on the rolling stock and the factthat the shops are old and engaged in fabrication of parts aswell as repair, imposes a heavy burden with the result thatthe shops become increasingly congested.

77. The Foundry. The railways embarked, a few years ago,on the construction of an iron and steel foundry which came intooperation in 1964. The plant has a production capacity of 3,800tons of iron and 1,800 tons of steel annually. It was designednot only for the casting needs of the railways but also for theneeds of other consumers in the country and even for exports.

78. Investment Plans. Investments planned for the SNCFTunder the Three-Year Plan was Dinars 2.7 million, but later theRailway's program was curtailed to Dinars 1.1 million. ActuallyDinars 1.5 million was spent; the difference is mainly due tothe investment requirements of the iron foundry which had to beraised from the planned Dinars 0.4 million to Dinars 0.9 million.

79. In the 1964-68 Plan, total investment in the nationalrailroads would amount to Dinars 4.5 million. The main itemsinclude the construction of a new railroad station in Tunis,

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enlargement of shops, procurement of locomotives and otherrolling stock and some reinforcement and renewal of track.(see Annex 12). The foreign currency component in the totalinvestments is estimated at 60 percent. The costs of theprogram appears again to be under-estimated; no allowancesfor contingencies and possible price escalation were made andpurchase prices for foreign goods have not yet been adjustedto the devaluation of the Dinar in 1964.

80. The planned reinforcement of the track and theprocurement of rolling stock in order to meet replacement andtraffic growth needs are of very high priority. In fact, theprojected procurements of cars and-tile planned track renewialmust be considered as insufficent -- they not only will not,in the mission's opinion, meet growth needs, but wi-Il evenfall behind replacement needs.

81. Other very high priority projects include, the missionbelieves, the imiprovement of shop facilities. The plannedinvestments would provide for a much needed replacement ofobsolete tools and for the increase and diversification of thecapacity for fabricating parts, which is also quite important.But here also the planned investments must be considered asinsufficient.

82. Low priority should be allotted to the Tunis railroadstation project which seems to be of questionable economicmerits. Fortunately, no design has yet been prepared for theconstruction of the station even its location has not yet beendetermined, so that chances are that it will not be startedduring the Plan period anyhow.

83. Personnel. The personnel of the SNcFT increased from4;,200 in 1955 to 7,300 in 1962 (26 percent) but was subsequentlyreducad to 4,700 in 1963 prirlarily by thc clinination of un-necossary soasonal uorkcrs. Trhe maJor p*rsonnel problemo arisesfrorn the continued resignations br cual-'Liod personnel who findbetter opportun.tios lsewhoro in thc ccono-ir. In r0cent years,dropouts havo averaged a'oout 200 aiiong techinical personnol and100 ainong otlhers par year. The :elanagement tries to preventtho cxodus by eoxtensivc w^ilf arc proLralais, but it has apparentlynot boen possiblo to ovorcowe tho handicap of thc rigid salarypolicies Thich the corTeany has to follow as a Government enter-prise.

The 0Cax-O3Sa Railroad

54. T1ds railroad connects the 1letlaoui phosphate miningregion to the Port of Sfax. The company also operates theSfax - Graiba - Gabes line. The branch lines Graiba - Gabes

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and Metlaoui - Tozeur are government-owned but operated bythe Sfax - Gafsa company. (see Map 2). Phosphate transports,which account for the great bulk of the operations, increasedfrom 1.68 million tons in 1960 to 2.4 million tons in 1964;this upward trend is expected to continue in the coming years.

85. The main line between the mining region and Sfax islaid with heavy rail; the rolling stock is adequate and in goodcondition. Repair operations appear to be well in hand. Thecompany's labor force is relatively stable, possibly partly dueto the lack of alternate work opportunities in the area.

86. Investment during the Three-Year Plan was for rollingstock and track reinforcement; it amounted to Dinars 1.7 million,or Dinars 0.5 million more than the original Plan figurc of Dinars 1.2million; procurement of rolling stock exceeded the orig-inal planswhile the track reinforcement program was somewhat reduced.

87. In the 1965-68 period, the Sfax - Gafsa company plans toinvest Dinars 2.9 million, of which Dinars 1.2 million would befor the reinforcement of the Graiba - Gabes line. The foreigncurrency component in the total investment is estimated at 60percent. In general the program appears appropriate to sustainthe company's continued operation, but the justification forreinforcing the Graiba - Gabes line lies in the constructionof the chemical complex in Gabes this part of the program should,therefore, be already coordinated with plans for the chemicalcomplex.

88. The statutes of the Sfax - Gafsa Railway are similar tothat of the National Railways, and, though the traffic structureis entirely different from that of the National Railways, thesame tariffs are applied. In other words, no distinction is madefor the specialized nature of the large phosphate transports.This distorts the books on the revenue side, and to add moreconfusion, operational costs are calculated by an antiquatedformula devised in 1926. At this rate, receipts exceeded theformula-calculated expenditures by 90 percent in 1964. At year'send the railroad's accounts are consolidated with those of othersubsidiaries of the mining company.

E. SEA PORTS AND MARITIME TRANSPORT

Thz Ports and Port Organization.

89. Tunisia's four main commercial ports at Bizerte, Tunis-La Goulette, Sousse and Sfax not only serve as the main terminalsfor overseas trade but also are the railheads for lines extendingsouthwesterly into the hinterland. In addition to the maincommercial ports, there are numerous fishing ports, some of which,for instance Tabarka, have minor commercial activities.

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90. Ihe construction, maintenance, administration and

operation of the ports were until recently the responsibilityof the R'egie des Ports de Commerce, a division of the Servicedes Ponts et Chaussees under the Ministry of Public Wiorks.The R4gie operated Tunis-La Goulette, the country's largestport, through a separate organization known as the Tunis MarineOffice. The other ports were supervised by the District Engineersof the Ponts et Chaussees. Early in 1965, the Government set upan autonomous authority, the Office des Ports Nationaux Tunisiens,

for the development and operation of the comme-cial ports of thecountry. The Office has its central management in Tunis, and hasappointed a Port Manager with staff to each of the four main

commercial ports mentioned above.

91. In 1964 operating revenues and operating expenses beforedepreciation for Tunis-La Goulette were evaluated at, respectively,Dinars 832,000 and Dinars 477,000, and for the otLer ports atDinars 464,000 and Dinars 201,000. With depreciation estimatedfor all ports at Dinars 306,000, the operating ratio amounted to76 percent. It is expected that this favorable ratio will bemaintained in the coming years.

92. The merger and reorganization of the two large stevedoring

companies, the Societe Nouvelle de Manutention Maritime (SNMM)and the Societe Nationale de Transport et Acconage Maritime(SNTAM) is scheduled for the near future; with the Governmenti_avlInL a irajcrity sharo in the new enterprise.

93. Locz i i a- thc ast c _c ea total nor-;traffic remained constant over 1955-60 at around 5 million tonsper year, while from 1960 to 1964 it increased by about 9 percentmainly due to increases in unloaded cargo (imports). Over thesame period, the share of Tunis-La Goulette decreased from 47

percent to 44 percent, Bizerte's from 7 percent to 3 percent,Sousse's remained at 3 percent; and Sfax's share increased from43 percent to 50 percent (See Annex 13).

94. Tunis-La Goulette is the principal port for generalcargo (imports and exports), coal, fuel and oils (imports),cereals (imports and exports) and iron ore (exports). Theprincipal ccmmodity handled in Sfax is phosphates for export.

95. Passenger traffic by sea decreased substantially overthe decade; it diminished from about 200,000 in 1955 to 84,000in 1964. The yearly average of vessels calling at Tunisianports changed very little over the decade, holding to about 3,500vessels per year.

96. Coastal navigation has been of little importance, but

material increases in coastal traffic are now beginning with the

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progressive development of industries, in particular as aresult of the distribution of petroleum products from the newrefinery of Bizerte. Over 280,000 tons of petroleum productswere shipped coastwise to other Tunisian ports in the firstsix months of 1965.

lae Tunis-La Goulotte Port Coriplex

97. The old port of Tunis in the city is still in use, 965meters of quay are used for general cargo, jetties and dolphinberths for coal and minerals, which in recent years has handleda rather constant volume of traffic (some 800,000 tons), butthere is no way in which the old port could be rebuilt into amodern efficient deep water port, By about 1954, 730 m. ofdeep water quay had been constructed at La Goulette on theNorth bank of the harbor, but without shore facilities otherthan quay cranes. Opposite La Goulette on the couth side ofthe harbor at Rades there are facilities for the export of ironore and phosphates and a petroleum terminal, In 1962 trafficamounted to 400,000 tons at La Goulette North and 1,150,000 tonsat Rades. The traffic of Rades will not materially change until1971; thereafter it may even decrease because of the progressivedepletion of the iron ore and phosphate deposits concerned. Onthe other hand it is expected that by 1971 the traffic in LaGoulette North will have increased to about 1.2 million tons,while the activity of the old Tunis port will have decreasedto some 500,000 tons. La Goulette North has therefore to be

extended so as to relieve present serious congestion at Tunis andto handle the expected increase in general cargo traffic.

InvostJn' Flarc

98. Investment in ports during 1962-64 bore very littlerelation to the original Three-Year Plan (Annex 14). Thelargest project mentioned in the Plan, the Port of Tunis - LaGoulette, was completely altered after the Plan was prepared.It can be estimated that of the total amount E Dinars 4.5maillion allocated to tho Plan only some Dinars 600,000 wasactually spont duiing the Plan period. Thn predominant partof this anount was usod for projocts not lontionod in the plan.

99. Excluding the port of Ghennouch (Gabes), which is anintegral part of the Ghennouch chemical complex project,investments in ports scheduled in the 1965-68 Plan amount toDinars 9.3 million in net investment plus Dinars 400i000 inreplacements (Annex 15). The most important item in the Planis the extension of the commercial port of La Goulette estimatedat Dinars 6 million. Construction on this project started in1964 and is carried out by contractors under the supervision ofconsultants. An IBRD loan of US$ 7 million equivalent has beenprovided for the project.

- 23 -

100. Dinars 1.2 million are included in the plan for a new

fishing port at La Goulette. It is expected that for thisproject, for which the final design has been made by consultants,a loan will be forthcoming from Europe. Investment in otherfisling ports is planned at Dinars 900,000, a third of whichwould be for Bizerte.

101 Dinars 3 million are allocated for the port of Ghennouch(Gabes) which would be part of the chemical complex of theIndustries Chimiques Maghrebiennes. An economic feasibilitystudy and pre].iminary engineering for the complex, includingthe port, has been made by consultants. (See the Chapter onIndustry of the cLeport). Final engineering of the port hasstarted with site investigation.

102. An investment of Dinars 1 million is planned for theport of Tabarka which handles presently about 100 tons of fishand about 7,000 tons of cork yearly0 Consultants made apreliminary economic and technical evaluation for enlargingand modernizing this port and equipping it with special fish-storage facilities, on the assumption that the fish landings willincrease to 7,000 tons per year. Although the mission fearsthat future traffic will not justify the construction of theport at this time, the bidding documrients for Tabarka haveaccording to the Highway Department already been released; allbids were due at the end of October 1965.

103. Present dredging equipment is old and insufficient tocope withl the continuous maintenance dredging needs of theTunisian ports. Although purchase of a dredgeL was planned butnot executed in the Three-Year Plan, the Four-Year Plan hasno provision for the replacement and upgrading of the dredgingcapacity; consideration should be given to this by the Officedes Ports Nationaux to the poss iTod ity of contract arrangements forfuture dredging.

The Marine Service (Coast Guard)

1o4. The Four-Year Plan sets aside Dinars 565,000 for thepurchase of five patrol vessels, the construction of lighthouses,and the construction of housing in various ports. In addition,replacements are planned for Dinars 139,000 including a supplyand support vessel.

iho Coripagnie Tunisionno do Haviaation (CTlT)

105. The CTN, a government-owned company, operates scheduledship lines between Tunisia and France, Italy and Libya. In thenear future, new lines are planned to be opened with otherMliddle Eastern and African countries and with Western Europe(Rotterdam, Bremen, Hamburg, and London); coastal traffic isalso planned to be further developed.

- 2L -

106. Investments for the CTN scheduled under the 1965-68Plan amount to Dinars 5.3 million, of which Dinars 1 millionis for renovation of the existing fleet. The Plan includes thepurchase of two secondhand ore freighters, three coasters, onevessel for wine transport, one oil tanker and two vessels withcold store. The advisability of these procurements is question-able, and studies should be carried out to determine thecomiercial feasibility of the project and the proper timing ofprocurements.

F. AIR TRANSPORT AND METEOROLOGY

Organization

107. Administrative services responsible for air transportare organized under the M4inistry for Public Works and Housing.Construction of airports is entrusted to the "Ser-ice des Pontset Chaussees"t; procurement and installation of navigational aidesand operation of airports is the responsibility of the "Servicede la Navigation Aerienne"', and maintenance of the "Service desBases A6riennes" both under the "Service des Transports Aerienset N-laritimes". Tunisia has a national air transport company,"Tunisair", which is a commercial enterprise. The list andclassification of the principal Tunisian eirports is given inAnnex 16.

Air Traffic

108. B3y far the most important airport in Tunis El Aouina,which carries the country's international air connections. Thetraffic In Tunis exceeds 200,000 passengers per year; this is stillonly one--fifth of that of Algier and one-tenth of that of fcrce,but it has been steadily increasing in recent years. Consultantshave projected that by 2975 the traffic is likely to reach 630,000passengers. Tourism plays an important part of this traffic (seeAnnex 17). Internal air transport is unimportant, though thereare several airports of varying size outside of the Tunis area.

Invo3sta1Qnts

109. During 1962-64 investrnents in airports, includingmeteorology, amounted to Dinars 5.3 million (see Annex 18);the major part was for -the Tunis El Aouina air strip. Investmentsplanned under the 1965-68 Plan amount to Dinars 7.6 million; thelargest project would be the Tunis El Aouina terminal buildingcomplex (Dinars 5 million),

Tho Tunis El Aquina ;irport

110. Tunis El Aouina is managed under the authority of theService des Transports A6riens et Maritimes. However, with the

I- 25 -

possible development of the airport, the establishment of anautonomous airport authority might become advisable. Presently,the airport has no separate accounts of expenditures which aremixed with other expenditures of the Service. Receipts are madeup of various user taxes, mainly landing and embarcation taxes.Rough estimates on operating expenditures made by consultantsindicate that receipts about balance operating costs but fallshort of capital costs (depreciation and interest). Financialprojection made in connection with the planned terminal bui-ldingproject indicate that the eco-,;ioic justification of the projectshould bo oxe=anod. includin- tho possibility of phas"n, construc-tion in various stag s.

Tunis Air

111. The fleet of Tunisair, a commercial enterprise, consistsof two Caravelles, two DC-4's and one DC-3. The purchase of twomore Caravelle planes is included in the 1965-68 Plan. Tunisaircenters its operation on the International lines connectingTunis with Mediterranean and European countries. Accounts ofthe company show reasonable profits. Market studies will haveto determine the appropriate timing of the planned aircraftpurchases.

4o'toorology

112. Tunisia is a member of the World Meteorology Organization(WMO) and as such it has certain obligations in regard to aerialnavigation and weather information. Meteorology services are alsoimportant -to agriculture and tourism: the Service estimates thatabout one-half its work is directly related to agriculture. Inthe organization of the World WJeather Watch, Tunisia will becomea regional center. Investment planned under the 1965-68 Planamcunts to Dinars 0.577 million, part of which is expected tobe financed by the WZMO.

G. POSTS AND TEJECOMMUWICATIONS

113. Post and Telecommunications are a public service organizedunder the Secretary of State for Post, Telephone and Telegraph.Accounts are integrated in the governmental accounting systemby which, on the one hand, revenues from tariffs are restitutedto the Treasury, and on the other hand, expenditures are coveredby the Government budget. Thus there is no proper record offinancial performance.

114. Post and telecommunications investments by nature tendto be flexible to a degree because many such projects are not ofhigh priority and can easily be adjusted to changes in budgetallocations. Investments during 1962-64 were planned to be

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Dinars 3.7 million but in fact amounted to about Dinars 5million. The difference can partly be explained by changes intecbnology and price escalations.

115. The 1965-68 Plan includes PTT investments in an amountof Dinars 7 million, of which Dinars 1 million wiould be usedfor the continuation of work started before 1965 (see Annex 19).The projects include the construction of a cable between Tunisand France, four cables within Tunisia to complement existingradio connections, post offices and facilities, and theautomation, modernization and extension of the telephone connections.

116. The major project would be the cable between Tunisia andFrance, in an amount of Dinars 1.5 million, which represents 50percent of the estimated total cost of the cable. It is expectedthat France will lay the cable, pay for 50 percent of it andfinance the Tunisian part of the investment.

117. A cable laid for military purposes has existed betweenTunisia and Italy since 1955, but never used, is now disposablefor civil use. Operation is expected within a short time, assoon as legal matters are settled between the two countries.

AN1XE 1Pagre 1

TRANSPORTATIOr, STORAGE AND COMI4UNICATION

GROSS DOMESTIC FRODUCT ANDGROSS FIXED CAPITAL FORMATIONT

I II III IV V

Argentina (1962) 9 21 61

Australia (1961) 8 19 62

Austria (1961) 7 1143

Belgium (1962) 8 11 26

France (1962) 5 11 14 45 55

Greece (1962) 8 19 28 61 91

Italy (1962) 7 14 16 56 66

Netherlands (1962) 9 17 16 54 50

Portugal (1962) 6 11 15 38 51

Malawi + Zambia (1962) 7 11 15 31 42

Spain (1960) 6-1/2 13 37

Tanzania (1962) 7 20 17 45 38

UJnited Kingdom (1962) 8 11 10 26 23

Yugoslavia (1962) 8 12 53

Tunisia1/

(1960) 6-1/2 24-1/2 43-1/2 76-1/2

(1964) 8-1/2 8-1/2 28-1/2

(1964) corrected 7-1/2 8-1/2 32

Average (1960-1963) 7 12-1/2 28 2 40

(Four-Year Plan target, 1968) 7-1/2

(Four-Year Plan, expected average1965-1968) 7-1/4 13 6-1/2 55

(Ten-Year Plan target, 1971) 4-1/2

1/ Motorcars and cycles.

AN_EX 1Page 2

Legend

Column I - Share of transportation, storage and communication in G.D.P.(at current factor cost) : in %.

Column II - Share of transport equipment in fixed capital formation (at

current market prices) : inl 'P

Column III - Share of investment in transportation, storage and communi-

cation in fixed capital formation (at current market prices) :in %.

Column IV - Investment in lransport Equipment X 100 (TAT ratio)

Transport Sector in G.D.P.

Column V - Investment in Transportation,, Storage and Communication A

Transport Sector in G.D.P. ratio)

Source: Yearly national accounts, published by the United Niations, andthe 1965-68 Four-Year Plan of Tunisia.

ANNEX 2

TRANSPORTATION AND CC[FiJNICATIONS

OUTPUT AND CONSUMPTION, BASED ON THE INPUT/OUTPUTTABLES IN THE FOUR-YEAR PLAN (1960 PRICES)

1960 1968Value Value

(million D) % (million D) %

Value Added

Wages a.s.o. 12.1 41-1/2 20.9 43Revenues enterprises 8.1 28 13.0 26

20,2 69-1/2 33.9 69

Taxes, subsidies 0.7 2-1/2 0.1 -

20.9 72 34.0 69

Imports 0.5 2 2.3 4-1/2

Intermediate Products

Petroleum products 2.3 8 3.9 8Mechanical and electricalproducts 2.3 8 4.0 8Other products 2,9 10 5.3 10-1/2

Output 28.9 100 49.5 100

Intermediate Consumption

Agriculture 1.1 4 1.3 3Food industry 2,5 8-1/2 3.2 6-1/2Petroleum industry 0.1 - 1.4 3Mining industry 4.2 114-1/2 7.3 15Chemical industry 0.7 2-1/2 19 3-1/2Constructing industry 0.6 2 1.3 3Trade 4°0 14 6.5 13Others le9 6-1/2 5.1 10

15.1 52 28.0 57

Final Consumption

Governmental consumption 1X6 5-1/2 2.2 4Consumption of households 9.5 33 16.1 32-1/2Exports (services) 2.7 9-1/2 3.2 6-1/2

Total Consumption 28.9 100 49.5 100

ANNEX 3Page 1

TRANSPORTATION AND COC,1'UNICATIONS

1965-68 FOUR-YEAR INVESTMENT PLAN

(in Dinars)

A. NET INVESTMENTS

1. Road System

Roads 6,150,000

Bridges 1,800,000Urban Development 2.p5%0,000 10,450,000

2. Ports

Commercial sea ports 1/ 6,000,000Fishing and small craft ports 3,400,000 2/ 9,400,000

3. AirportsAirports 6o000,000

4, Road Transort

Increase in vehicle fleet 2,660,000Construction and studies 1,170,C)00 3,830,000

5. Post and Telecommunications

Continuation projects startedbefore 1.965 1,000,000

Cable Tunisia/France 1,500,()00Miscellaneous 4,500,000 7,000,000

6. Railways

Rolling stock 3,630,000 2/Way and constructions 3,2200000 /Miscellaneous 520,000 7,370,000

7. Aeronautical Services 1,058,000

8. Tunis Air

Air planes 3,150,000 LiMiscellaneous 350,000 3,500,000

9. Meteorology 577,000

10. Coast Guard 565,000

11. Cie Tunisienne de Navigation

Ships 5300,000

Total Net Investment 55,050,000

AINNEX 3Page 2

B. REPLAC24ENTS

Road construction and maintenance equipment 4,000,000

Port equipment 400,000

Ferries 600,000

Coast Guard 139,400

Road transport, vochiclu float 6,615,000

Total Replacements 11,754,400

TOTAL GROSS INVESTMvlNT 66,8042400

Notes: 1/ The cost of the port de Ghennouch (D 3s000,000) is included in

the chemical complex project at Gabes.

2/ Chapitre I, Section V of the Plan indicates D 3,300,000.

3 Chapitre II, Section II of the Plan indicates respectivelyD 3,696,000 and D 3,284,000.

4/ Chapitre III, Section III of the Plan indicates an amount of

D 395,000 to be paid after 1968 (D 3,150,000 - D 2,755,000).

Source.of information: 1965-68 Four-Year Plan of Tunisia.

ANNEX 4

HIGHWAY DEPART.',4ENT BUDGETS(in million Dinars)

Operating CapitalYear Budget Budget Total

1961 2.9 1.7 4.6

1962 2.8 1.2 4.0

1963 2.8 1.4 4.2

19641 (Estimate) 2.8 2.0) 4.8

Source: Highway Department

ANNEX 5

ROAD CONSTRUCTION AND I*AINTENANCE COSTS

'yye of Road Bituminous Roads Gravel Roads

A. Construction (in t000 Dinars per kIn)

Trunk Roads

Flat country 6.32 4.16Undulating 7.42 5.26Hilly 8.62 6.46Mountainous :LO.32 8.16

Rural Roads

Flat Country 3.80 2.4Undulating 4.38 2,98Hilly 4.94 3.54Mountainous 5.84 4.44

B. Maintenance (in Dinars per kIn and per year)

Trunk Roads

Macadam 450Bituminous surfaced 325Earth roads 170

Rural Roads

Macadam 280Bituminous surfaced 255Earth roads 150

Source: Highway Department

ANNEX 6

HIGHWAY INVESTiIEIT FROGRA14

FORMANCE UNDER THE 1962-64 THREE-YEAR PLAN

Budget AmountsAllocations Paid

(in '000 Dinars)

A. Original Projects

4 Projects 1/ - 180

1 Project 2/ 50

12 Projects / 1,800 2,476

7 Projects / 1,557 1,020

Sub-total: 3,407 3,676

B. 18 New,r Projects 1,247 924

Total: 64 4k,600

Notes: 1/ Projects not budgeted originally.

2/ Projects budgeted but not executed.

3/ Projects for which budget allocations were less than payments.

j/' Projects for which budgeted allocations were higher than payments.

Source: Performance report of the Three-Year Plan of Tunisia.

ANNEX 7

IIIGHWAY INVESTMENT PROGRAM

1965-68 FOUR-YEAR PLAN

(in '000 Dinars)

(a) Continuation of road construction started

before 1965 (286 kmsr) 2,000

(b) New Roads (about 270 kms.)

Agricultural roads 2,000

Industrial roads 950

Borma pipeline road 200

"Route Transsaharienne" 300Touristic roads 700 6,150

(c) Construction of about 20 new bri4dges 1,230

Betterment: 2 bridges 350

Miscellaneous 220 1,800

(d) Urban Development

Tunis 1,000

Kairouan 800

Other centers 700 2,500

Total Net Investment 10,450

Replacements

Road construction and maintenance equipment 4.,000

Six ferries 600

Total Gross Investment 15,050

Source: 1965-68 Four-Year Plan of Tunisia.

ANIEX 8

NUMBER OF IMOTCR VEHIICLES IN TUNISIA

Time of PurchaseNo

Before After Infor-Category 1940 1940-49 1950-54 1955-58 1958 mation Total

A. According to the Service de Statistique (December 1963)

Private Cars 6315 5720 12741 8975 12297 1909 47957

Motorcycles, Scooters 1391 2795 2445 1839 940 524 9934

Comnercial Cars 256 250 1222 854 1527 135 4244

Auto Buses 131 373 202 157 344 115 1322

Trucks, Vans 1883 4872 3670 2859 7254 530 21068 /

SPecial Cars 5 45 70 48 353 8 529

Tractors 1549 2883 4025 1948 4498 1170 16073 2/

Trailers 117 1001 416 272 328 198 2332

Semi-Trailers 1 7 7 11 328 4 358

No Information 15 28 57 68 13 2 183

B, According to the Service des Transports Terrestres (December 1964)

Trucks 1275 _ 1247 3493 - 6015

Semi-Trailers 97 31 107 - 235

AGE OF MOTOR VEHICLES, IN PERCEINTAGES

Before After 1958 or1955 1955-58 No information

A. According to the Service de Statistique

Private Cars 52% 18% 30%

Auto Buses 53% 12% 35%

Trucks, Vans 49% 14% 37%

B. According to the Service des Transports Terrestres

Trucks 21% 21% 58%

Notes: 1/ Of which 1686 tip-lorries.v £Of which 15549 tractors for agricultural purposes.

ANNEX 9

PUBLIC ROAD TPRANSPORT COMyPAAIES

COST STRUCTURE (1964)

RegionalTransport

S.N.T. / S.T.M. Companies Total% % % % n r- %

Salaries, Wiages 51 36-1/2 34 41

Fuel 7-1/2 12-1/2 12 10-1/2

Tires 4 2/ 7 5 5

Maintenance 7-1/2 19 12-1/2 32 12-1/2 29-1/2 10-1/2 26

Taxes 8-1/2 6 10 9

Insurance 1-1/2 2-1/2 3 2-1/2

Depreciation 11 21 13-1/2 22 13 26 12 23-1/2

General Overhead Costs 2 3-1/2 4 3

Total Costs 93 94 93-1/2 93-1/2

Net Benefits 7 6 6-1/2 6-1/2

Total Revenues 100% 100% 100% 100%

Total Revenues (1964)

Value %(in 1000 Dinars)

S.NoT. 2,679 36

S.T.M. 872 12

Regional TransportCompanies 3889

Total 7,440 100

2/ Including the trolleybuses and the "Tunis-La Goulette-4iarsall electricrailway.

NB: S.N.T. - Societi Nationale des TransportsS.T.M. - Societe de Transports de Marchandise

Source: Service des Transports Terrestreso

ANNEX 10

NATIONAL RAILWAYS

SUMTARY OF FINAAICIAL RESULTS

(in 1000 Dinars)

Year 1958 1959 1960 1961 1962 1963 1964 1965(estimates"

Receip-ts from railwayoperations 3,819 4,281 4,660 4,345 4,h21 4,638 4,524 4,901

Expenditures 4,390 4,357 4,854 5,218 5,h07 5,628 5,735 6,324

Deficits 571 76 194 873 986 990 1,211 1,423

Operating Ratio 1:55 1:0 1:04 1:20 1:23 1:22 1:26 1:28

Source: Service de Statistique

ANNiEX 11

NATIONAL RAILWAYS

RAIL TRAFFIC AND RECEIPTS FROM TRAFFIC

Year 1958 1959 1960 1961 1962 1963 1964 1965

Freight in million tons-kilometers

Mineral Products 282 256 289 241 216 227 242

Others 132 173 204 201 217 207 197

Total 414 1429 493 442 423 434 439

Passenger Traffic in million passenger-kilometers

Tunis Suburbs 81 84 91 93 99 108 116

Long Distance Lines 171 205 218 233 271 295 311

Total 252 289 309 326 370 403 427

Receipts from Traffic (in '000 Dinars)

Passenger Traffic 826 946 1,017 1,044 1,190 1,284 1,333

Freight 2,863 3,010 3,417 3,029 2,889 3,051 2,991

Total 3,689 3,956 4,434 4,073 4,079 4,335 4,324

Source: Service de Statistique

ANJNEX 12

RAILIAYS

1965-68 FOUR-YEAR INVESTMENT PLAN

National Sfax-GafsaRailways Railway Total

(in 1000 Dinars)

Rolling Stock 2,200 1,430 3,630

Track and Roadway Equipment 900 1,170 2,070

Tunis Railroad Station 750 - 750

Other Buildings 150 250 400

Shop Equipment andMiscellaneous 470 50 520

TOTAL 4,470 2,900 7,370

Source: 1965-68 Four-Year Plan of Tunisia.

ANNEX 13

1MARITIME TRAFFIC

TUNISIAN PORTS

No. of

Merchandise (1,000 T) Passengers Vessels,Tunis-La all Ports all

Goulette Bizerte Sousse Sfax Total (1,000 X) Ports

D E D E D E D E D E D E D+E

1955 805 1566 45 314 48 106 206 1939 1104 3925 94.0 82.3 6280

1956 883 1642 51 307 52 111 252 1874 1238 3934 99.6 123.8 6530

1957 748 1779 64 404 34 112 223 1783 1069 4078 85.8 128.6 7092

1958 710 1817 23 251 25 145 203 2018 961 4231 47.0 74.4 7136

1959 761 1712 33 192 21 210 299 1965 1114 4079 49.6 69.4 8174

1960 960 1702 72 215 36 134 295 1725 1363 3776 32.2 49.4 7194

1961 1208 1448 76 113 137 141 332 1903 1753 3605 31.5 65.4 7176

1962 1064 1289 136 165 117 160 297 1854 1614 3468 35.8 51.7 6588

1963 1100 1470 144 156 60 192 300 2360 1604 4178 35.3 41.4 6600

1964 1000 1450 74 87 50 144 394 2390 1518 4071 39.0 54.7 7200

Notes: D = Unloaded; enteringE - Loaded, leavingPort of Tabarka: exports of cork about 7,000 tons/year.

COM1POSITIONi OF TRAFFIC (1962)

(in 1,000 tons)

Tunis-LaGoulette Bizerte Sousse Sfax Total

Merchandise: Unloaded

General Merchandise 416 47 39 146 643

Coal 30 - - 3 33

Fuel, Oil 382 22 - 101 505

Cereals 236 67 78 47 428

1064 _17 117 297

Merchandise: Loaded

General Merchandise 320 116 98 130 664

Phosphates 214 - - 1707 1921

Iron Ore 659 30 - - 689

Other Products/Goods 96 19 62 17 1941289 _ 1854 W

Source: Service de Statistiquee

ANNEX 14

PCRT INVESTMENT PROGRAM

PERFCR14ANCE UNDER THE, 1962-64 THREE-YEAR PLAN

PlannedEstimated Investments- Amounts

Total in the Bud.get PaidCost of 3 Yoar Plan Allocation During

Projects Project Pariod 1962-1964 1962-1964

Fishing Ports:

Kelibia D 600,000 D 600,000Tabarka 600,000 600,000 - -

Zarzis 300,000 300,000 -

Mahdia 750,000 - D 750,000 D 209,000La Goulette 250,000 250,-000 250,000 (?)Sousse - 150,000 _ 50,000Souksine-Teboulba 83,000 - 50,000 -

Gabes 350,000 - 350,000 163,300Kerkennah 75,000 - 75,000 40,200

Commercial Ports:

Mahdia 560,000 - 36,700Gabes 160,000 - 1605000 -

Purchase of a dredge 100,000 100,000

4,028,000 1,850,000 1,685,000 449,40oo

Port of Tunis-La Goulette

Port project 1,650,000 1650,000 ? ?Road project 1,000,000 1,000,000 ? ?

Miscellaneous

Protection of theCarthage Palace 250,000 - 150 000 150,000 (?)

62928,000 4,5000t0 1,835,000 (?) 599,400 (?)

Source: Performance report of the Three-Year Plan of Tunisia.

ANNEX :15

PORT INVESTMENT PROGRAiM4

1965-68 FOUR YEAR_.PLAN

Commercial Ports

La Goulette D 6,000,000

Ghennouch (Gabes) (3,000,000) J

Commercial and Fishing Ports

Tabarka 1,000,000

Fishing Ports

La Goulett.e 1,200,000

Bizerte 300,000

Chebba, Salakta,-Sayada, Teboulba, ) 600,000Haouaria, Sousse. Sidi Daoud, a.s.o.)

Yacht Harbors

Sidi Ben Said 150o,000

Zembra 50,000

Total Neet Investment 9,300,000 /

Renewal of Port Equipment 400,000

Total Gross Investment 1) 9,700,000 /

1/ Excluding the investment in the port of Ghennouch: this

is included in the chjrical complox prbjcct of tho Industrics

Ch imiques 1iIaghf'obionnos.

NB: The summary of the Four Year Plan indicates for net investment D 9,400,000

Source: 1965-68 Four Year Plan of Tunisia

ANNEX 16

PRINCIPAL TUNISIAN AIRPORTS

Characteristicsof the Runway

AiEport Category Dimensions Resistance

2220m x 45 18T SIiLTunis/El. Aouina A

3200m x 45 35T SIWL

DjerbaB 2400m x 45 18T SIiL

Mellita

Monastir B 2450m x 45 18T SIWI

1800m x 30Sfax/El Maou C lihOm x 50 18T

1500M x 50

Gafsa C 1600m x 40 DC-3

Skhira C 200Cm x 60 13T

Gabes D 1200m x 30 3T

S.P. 3 D 1500m x 40 13T

S 0P. 4 D 750m x 4° 3T

Sri-rnAt SAu-icA de Ta NaviPation Aerienne

ANEX 17

TUNIS EL AOUINA AIRPORT

PASSENGER TRAFFIC

% ofYear Arrivals Departures Transit Total Increase

1947 20,497 21,088 31,934 73,519 -

1948 30,209 30,730 22,674 83,613 13.7

1949 33,329 36,h449 19,242 89,020 6.4

1950 33,648 35,,479 13,735 82,862 - 6.9

1951 38,922 40,902 11,999 91,823 10.9

1952 41,474 44,830 10,866 97,170 5.8

1953 46,073 47,808 9,835 103,716 6.8

1954 54,556 59,308 3,437 117,301 13.1

1955 65,711 70,407 6,377 142,495 21.8

1956 77,502 86,047 4.,556 168,105 18.4

1957 73,853 85,644 3,944 163,441h - 2.7

1958 64,368 73,501 2,639 140,508 -13.9

1959 73,319 82,214 4h,oo6 159,539 13.5

1960 78,221 83,775 1,932 163,928 3.0

1961 75,747 93,845 9,751 179j,343 10.0

1962 94,316 90,397 2,128 186,840 4.0

1963 98,659 103,0o. 6,610 208,310 11.6

1964 232,332

Source: Service de Statistique.

ANNEX 18

TUNISIAN AIRPORTS

INVESTMNT PLANS

1962-64 1965-68Plan Plan

Budget ActualItem Allocations Expenditures

-- - In Dinars-----------

Tunis Airport

Project Caravelle -Runway 50O000 111,000Project Boeing - Runway 4,OOO,OOO 4,298,000Terminal Buildings 500,000 40,000 5,000,000

Djerba Airport

Runway and Technical Buildings 300,000 :327,0o0Terminal Building and Equipment - - 600,000

Skanes Airport

Runway - 1,000 400,000

Aerial Navigation Service 135,000 180,000 850,000

Meteorology 87,000 63,000 577,o00

School for Aviation and Meteorology - 258,000

Service of Airports - 208,000

5,072,000 5,278,000 7,635,OOO

Source: Performance report of the Three Year Plan of Tunisia, 1965-68Four Year Plan of Tunisia

AIMEX 19

POT AND TELECOMMUNICATIONS INVESTMENT PROGRAM

1965-68 FOUR YEAR PLAN

Dinars

Continuation of projects started before 1965: 1,000,000

Telecommunication:

Transmi.ssion: Cable Tunis-France (50%) 1,500,000Depapinization Cable North Africa 400,000New Cables 1,600,000Multiplex Equipment 200,000

Automation: Tunis Area 350;o000Sousse and Sfax A:reas 230,000HiLscclanoous 170,000

M4odernization and Extension of Telex Equipment 120,000

M4odernization and Extension of Telephone Network 320,000

Post:

Buildings 700,000

Modernization and M4echanization 150,000

Miscell.aneous 260,000

7,000,000

Source: 1965-68 Four Year Plan of Tunisia.

TUN ISIAORGANIZATION CHART OF THE HIGHWAY DEPARTMENT

STATE SECRETARY OF PUBLIC WORKS AND HOUSING

HIGHWAY DEPARTMENTr~--- -- - - - --

I~~~

I~~~~~~

HOUSINGI__________J I r-1 CHIEF ENGINEER, HIGHWAY DEPARTMENT

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AERONAUTICS AEROPORTS STUDIES, CONSULTANTSI AND MARINE I AND PORTS IL____---J I L …_____L----------1 I

I SERVICE I

I OF LANDI TRANSPORTATION I

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NOVl.MBER 1965 ISRD-1614R