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092757 1 (1970-03-05)

handle is hein.gao/gaobacwqv0001 and id is 1 raw text is: UNITgD STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D C 20548 INTERNATIONAL DIVISION MAR 5 ft Dear Dr. Hannah. We have made a review of selected aspects of AID's assistance to the transportation sector in Latin America The primary purposes of the review were (1) to examine into, and make observations of, AID's management and administration as they related to its transportation sector assistance efforts in Latin America and (2) to ascertain how this assistance was coordinated with the specific and overall economic and social development goals of selected Latin American countries AID's assistance to the transportation sector in 17 Latin American countries from July 1, 1962, through June 30, 1968, amounted to over $500 million, most of which was directed to highway construction and maintenance equipment projects AID has provided about $443 million of this assistance to nine Latin American countries without the benefit of countrywide transportation studies and plans We noted that, in the few Latin American countries where trans- portation studies had been completed or were in process at the time of our review, the results in most cases showed that too much emphasis had been placed on transportation as a whole or on a particular trans- port mode and thereby utilized funds that might have been made available to more desirable social and economic development projects. We reviewed in some detail AID's assistance to the transportation sector in Bolivia, Brazil, and Chile These three countries received about $364 million, or approximately 68 percent of the total AID trans- portation assistance to Latin America, during the 6-year period ended June 30, 1968. These funds were programmed without the benefit of overall countrywide transportation studies and plans. Consequently, we were unable to evaluate the effectiveness of AID's assistance to the transportation sector in these three countries In addition to noting the programming of transportation funds without the benefit of countrywide transportation studies and plans, we noted the following matters in Bolivia and Brazil which, we believe, merit your attention and consideration --We found that local currency financing for road projects had been provided without adequate feasibility and engineering 17 0 V 27 61

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