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Implementation Completion Report (ICR) Review - Rural Roads Rehabilitation and Maintenance Project

1. Project Data:   
ES Date Posted:
Project Name:
Rural Roads Rehabilitation and Maintenance Project
Project Costs(US $M)
 250.23  264.03
Loan/Credit (US $M)
 90  86.8
Sector, Major Sect.:
Rural Roads,
Cofinancing (US $M)
 90  90
L/C Number:
Board Approval (FY)
Partners involved
Closing Date
12/31/1999 12/31/2000
Prepared by: Reviewed by: Group Manager: Group:  
Kavita Mathur
Timothy A. Johnston Alain A. Barbu OEDST

2. Project Objectives and Components:

a. Objectives
The overall objective of the project was to provide a well-integrated and reliable rural road system through rehabilitation and maintenance of rural roads and key links connecting to the primary road system. The specific objectives were to:

(a) reduce transport costs and raise the reliability of vehicular access to expand markets for agricultural and non-farm products;
(b) integrate poorly accessible zones with regional economic centers;
(c) improve transport conditions in rural villages;
(d) generate employment through the rehabilitation and maintenance of rural roads to mitigate rural poverty; and
(e) build up institutional capacity at local government level and develop small and medium enterprises to manage and carry out, on a sustainable basis, the maintenance and upgrading of rural roads.

b. Components
The project consisted of the following five components:

    - rehabilitation of rural roads,
    - rehabilitation of connecting primary and secondary roads,
    - routine maintenance of rural roads,
    - improvement of non-motorized transport,
    - institutional development.

c. Comments on Project Cost, Financing and Dates
The actual cost of the project is US$264.03 million compared to appraisal estimate of US$250.23 million. The Government counterpart funds increased from US$70.25 million to US$87.26 million. About US$.3.2 million of the loan was undisbursed at project closing. The loan was extended twice, from December 31, 1999 to June 30, 2000 and to December 31, 2000.

3. Achievement of Relevant Objectives:

The project achieved its objectives and far exceeded the physical targets set out at appraisal. The project aimed to benefit 200 villages but surpassed this by benefitting 390 villages.

Actual (km) Planned (km)
    Rehabilitation of rural roads 8,900 7,500
    Rehabilitation of secondary roads 2,370 2,200
    Maintenance of roads 10,900 9,400
    Paving of village streets 174 141
    Rehabilitation of tracks (footpaths) 3,000 1,500
  • The rehabilitation and maintenance of rural roads and key links have substantially improved the transport conditions between rural communities and production and consumption centers. Travel time have decreased markedly and transport tariffs have declined by 15 percent for freight on busses and 8.6 percent for trucks on project roads against 1.2 percent and 0.7 percent, respectively, along the "control roads".
  • Improvements of tracks/footpaths to facilitate Non-Motorized Transport (NMT) have brought the most isolated and the most impoverished communities to the mainstream of economic activity. Improved access, safety and the reliability of the trips are some of the benefits perceived by these communities.
  • The project generated 32,300 seasonal unskilled jobs through rural roads rehabilitation program, and about 4,700 permanent jobs through development of micro-enterprises that routinely maintain the rehabilitated roads.
  • Institutional capacity at provincial and local level to manage rural transport assets and to carry out maintenance has substantially improved. Procedures to guide the planning and execution of rural road programs were introduced. These include systematic use of participatory approaches for subproject identification; introduction of technical, economic, and social criteria for screening and design of rural road sub-projects; development of technical and operational guidelines for implementation; and extensive use of local contractors for execution of works.
  • For the roads rehabilitated under the project, a routine maintenance arrangement was set up: the project promoted the development of microenterprises through on-the-job assistance and training on technical and financial aspects and established adequate contract arrangements and payment systems. To finance maintenance, a Maintenance Cofinancing Mechanism (MCM) was designed at project's end for its implementation in a second phase of the project. In this second phase, municipalities participating in the rural roads project would have to contribute to the cost of routine maintenance activities carried out in their jurisdiction.

4. Significant Outcomes/Impacts:

The project improved rural accessibility, reduced transaction costs for rural products, and opened up economic opportunities for 2.8 million people living in 390 villages.
1. The project successfully developed participatory approach for the rural roads sector in Peru.
2. The project has unleashed the local entrepreneurial potential - some of the microenterprises that were developed to undertake routine maintenance are acting as catalysts for other local development initiatives. In some cases they have became contact points for extension services and local community ventures.

5. Significant Shortcomings (include non-compliance with safeguard features):

6. Ratings:ICROED ReviewReason for Disagreement/Comments
Highly SatisfactoryHighly Satisfactory
Institutional Dev.:
Bank Performance:
Highly SatisfactoryHighly SatisfactoryThe Bank Team introduced the use of the Logical Framework to the project, which is a standard Bank practice now. The Bank supervision team showed great sensitivity to community needs and engaged in frequent dialogue with the communities.
Borrower Perf.:
Highly SatisfactoryHighly SatisfactoryThe Borrower showed strong commitment to the project throughout its design and implementation stages. The Ministry of Transport through the
Project Implementation Unit fully embraced the participatory approach adopted for project design.
Quality of ICR:

7. Lessons of Broad Applicablity:

The ICR identified the following lessons:
  • For effective poverty reduction, rural accessibility interventions must find a balance between poverty targeting and promotion of economic opportunities.
  • Communities benefiting from sub-projects need to be effectively mobilized from project initiation through the project post-completion for successful implementation and sustainability of the project. Workshops during the selection and the design phases are important for creating project ownership and defining priorities. Post-completion workshops are a powerful way of changing communities attitudes towards maintenance which is necessary for the sustainability of the projects.
  • The role of local and provincial authorities in supporting sub-projects also needs to be strengthened to ensure sustainability in particular project operation and maintenance resources.

OED carried out the Project Performance Assessment simultaneously with the preparation of the ICR. It identified following valuable lessons:
  • Transport projects need to be put into a broad socioeconomic context. View projects as an experiment and observing its results allows for social learning - and development.
  • Structure participation as a progressive and continuous dialogue.
  • Interactions with the borrower and beneficiaries should take place in terms that they understand and in a context they set.
  • Acknowledge the complexity of the problem and keep the interpretation of objectives flexible.
  • Focus more on analyzing problems, than on achieving results; explore failures and successes together with the borrower; and finally, learn to use emotional communication for facilitating change. This requires that project management show leadership and be a spokesman for the project, be capable for conducting sectoral and intersectoral negotiations, and establish good relations with the spokesmen for the stakeholders. Project management must also be backed up by an excellent project information and management system.

8. Audit Recommended?  Yes

          Why?  An audit was carried out along with the Intensive Learning ICR mission in October 2000.

9. Comments on Quality of ICR:

The Intensive Learning ICR is exemplary. It is based on beneficiary workshops and a study on economic, social and environmental impact of the project conducted by a local think-tank NGO. The analysis of the implementation experience and the project outcome is comprehensive and of high quality. The ICR draws out several important lessons from the beneficiary survey which will enable the Bank to interact with the borrower and the beneficiaries to design and implement other rural road projects with strong beneficiary participation.

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