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Multinational – Botswana/Zambia : Proposal for an Adf Grant of Ua 1.80 Million to Finance the Sadc North-South Transport Corridor Improvement Study

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Multinational – Botswana/Zambia : Proposal for an Adf Grant of Ua 1.80 Million to Finance the Sadc North-South Transport Corridor Improvement Study AFRICAN DEVELOPMENT FUND Language: English Original: English MULTINATIONAL – BOTSWANA/ZAMBIA : PROPOSAL FOR AN ADF GRANT OF UA 1.80 MILLION TO FINANCE THE SADC NORTH-SOUTH TRANSPORT CORRIDOR IMPROVEMENT STUDY SCCD: N.G. MULTINATIONAL Botswana/Zambia – The North-South Transport Corridor Improvement Study ADF GRANT MATRIX PERFORMANCE HIERARCHY OF OBJECTIVES EXPECTED RESULTS REACH INDICATIVE TARGETS ASSUPTIONS/RISKS INDICATORS Sector Goal 1.1 Ratio of transport and insurance costs to total 1.1 Contribute to increase cross- 1.1 Reduction of Transports and Populations value of exports for the border trade and production factor transaction costs for import of Botswana, region reduced. Volume of flows to support regional socio- and export. Increase volume Zambia, Trade increased by 50%. economic integration. of trade. DRC, & SADC. Source: Trade Data from IMF, SADC Project Objective 2.1 Commitment of donor 2.1 Construction of 2.1 Member Countries 2.1 Required financial resources to agencies through signed Kazungula Bridge and remained committed to 2.1 Project preparation to remove implement the Kazungula Business loan/grant agreements, or corridor improvement regional cooperation physical and non-physical barriers bridge and other corridor community, Commitment of Private started in 2008. within SADC. along the North-South Corridor. improvements are mobilized. exporters, sector through a signed 2.2 Strengthen SADC capacity for 2.2 Trade and transport facilitation importers, 2.2 Implementation of trade 2.2 Member Countries BOT agreement. formulation and coordination of program formulated and truckers, and transport support actively Regional Infrastructure and implemented along with the farmers, 2.2 Timely preparation of facilitation program harmonized transport NEPAD project infrastructure components. SADC regional infrastructure started by 2008. policies and programs 2.3 SADC infrastructure project Secretariat. projects by SADC and pursue their coordination improved. implementation vigorously. Activities 3.1 Final design reports for the 3.1 Detail Design Reports 3.1 Effective coordination 3.1 Detail Design plans, Kazungula bridge and for Corridor Consultancy Services of the implementation specifications and estimates Shippers, corridor facilities approved Infrastructure 3.1 Kazungula Bridge and border of the study by the and tender documents for the Freight by the governments of improvement facilities (UA 2.04 M). SADC Secretariat and Kazungula Bridge and border Forwarders, Botswana and Zambia, and completed and bankable 3.2 Corridor Facilities (UA 0.34 M). commitment of posts facilities prepared. Transporters, the SADC. project ready by 2008. 3.3 Trade and Transport Facilitation Botswana and Zambia 3.2 Detail Design plans, Ministries in 3.2 Trade and Transport 3.2 Trade and Transport Program (UA 0.17 M). to the project. 3.4 Institutional Support & Audit specifications, estimates, and charge of Facilitation program for Facilitation Program Services (UA 0.35 M). tender documents for corridor Transport the corridor validated by adopted by member facilities (ICD, Weigh and roads of stakeholders; countries & receive Stations, etc) prepared. SADC 3.3 Infrastructure Expert on implementation 3.3 Trade and Transport member board and operational commitment by 2008. Facilitation Program countries. formulated and final reports SADC prepared. Secretariat 3.4 Infrastructure Expert recruited for SADC 1 1. INTRODUCTION 1.1 The Governments of Botswana and Zambia jointly requested the financial assistance of the Bank to prepare the detail design studies of the Kanzungula Bridge over the Zambezi River to remove the remaining physical and non-physical barriers along the SADC North-South transport corridor. The proposed bridge to link Botswana and Zambia over the Zambezi River is one of the missing links in the SADC regional trunk road network and has been included in the NEPAD-STAP. The proposed Detailed Design Studies will fully define the project and prepare it for implementation. 1.2 The Bridge is of strategic importance to the economic integration of the SADC region. The crossing provides the connection between the regional centers of economic activity and the link to from regional ports which handle all exports and imports from Botswana and Zambia. The construction of the Kazungula Bridge would replace the existing ferry which represent a major bottleneck, and enhance transport operations along the regional North-South Corridor which links the mineral rich regions of Zambia and DRC to Botswana and the port of Durban in South Africa. 1.3 The Project is considered as a priority by both the Botswana and Zambia governments, and is supported by the SADC Secretariat which had proposed its inclusion in the NEPAD STAP Projects. 1.4 The proposal, submitted for your consideration is in regard of a grant of UA 1.80 million from ADF resources for multinational operations – broken down in UA 1.45 million for Republic of Zambia (GRZ) and UA 0.35 million for SADC Secretariat - for the purpose of co-financing the SADC North-South Transport Corridor improvement study and strengthening the Secretariat’s institutional capacity as described in this report. This operation is consistent with the objectives of the New Partnership for Africa’s Development (NEPAD) and part of its short-term action plan for infrastructure. It is also consistent with the Bank Group’s Policy on Regional Economic Cooperation and Integration, which provides the basis for the utilization of ADF resources for multinational projects to promote regional economic integration. 2. THE PROPOSED STUDY 2.1 Study Design and Formulation 2.1.1 Across the SADC region, transport links that connect east to west are well established; however the north-south linkages have not been fully functional. Free movement of goods and people between Botswana and Zambia has been obstructed by the lack of a reliable bridge structure across the Zambezi River. This has been one of the greatest causes of hindered economic integration among the member states of SADC. The SADC north-south corridor connects the South African port of Durban to Lusaka (Zambia) and Lubumbashi (DRC) through Johannesburg and Gaborone (Botswana). All the corridor road links in South Africa, Botswana, and Zambia are of bitumen standard and in good conditions. However the lack of a bridge at the Botswana/Zambia border, and the poor condition of other corridor facilities such as border posts, weighbridge stations, and inland container depots represents serious constraints and transport bottlenecks. This condition is compounded by cumbersome transit procedures and the lack of harmonized transport regulations. The present study was designed to formulate a comprehensive development plan for both the physical and non- physical barriers along the north-south transport corridor connecting Botswana to Zambia through Kazungula, including the detail design of the bridge over the Zambezi River, improvements plans for one-stop border posts and other corridor facilities, and the design of a 2 trade and transport facilitation program. The study will also investigate various financing and management options for the bridge. 2.1.2 The study design and formulation took into account lessons learned from previous interventions of the Bank and other donors in multinational transport operations, and projects involving regional entities. In past intervention of the Bank and other donors involving transport corridors, emphasis on addressing the physical infrastructure with no consideration for the non-physical barriers has had only modest results in improving cross-border mobility. Poor implementation capacity and inappropriate regional coordination has also been one of the weaknesses and the source of protracted delays in project execution. The proposed study formulation reflected these lessons through a comprehensive approach to address both infrastructure and trade facilitation aspects, and by providing technical assistance to supervise the implementation of the study and a strong regional project coordination steering committee with appropriate budgetary provisions. 2.2 Sector Goal The sector goal of the study is to improve land transport communications between Botswana and Zambia and therefore contribute to the economic integration of the SADC region. 2.3 Study Objective The objective of the Study is to prepare the economic feasibility, detail engineering design, and tender documents for the Kazungula Bridge over the Zambezi River and other key infrastructure facilities along the SADC north-south corridor within Botswana and Zambia. 2.4 Description of the Study 2.4.1 The study comprises the following components: A. Economic Feasibility and detail Design studies of the Kazungula Bridge, Border Control Facilities, and Tolling Facilities – Under this component, an economic feasibility, environmental and social impact assessment (ESIA), and detailed engineering design would be undertaken for the Kazungula Bridge and other related facilities. The bridge is a two-lane bridge with 1-m sidewalk on both sides. The total length of the bridge is 720 metres. The other facilities include 3-km approach road, One-Stop-Border Posts, and tolling facilities. The study would determine among others the most cost-effective bridge structure and the optimum financing/operating arrangements (Loan, BOT, Toll Concession, etc). B. Feasibility and Detail Design of other corridor-related facilities along the North-South Corridor – Under this component an assessment of the adequacy of other corridor-
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