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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD 916 PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 49.1 MILLION (US$69 MILLION EQUIVALENT) TO THE REPUBLIC OF MALAWI FOR THE SECOND PHASE OF THE SOUTHERN AFRICA TRADE AND TRANSPORT FACILITATION PROGRAM Public Disclosure Authorized April 8, 2015 Transport and ICT Global Practice Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective February 28, 2015) Currency Unit = Malawi Kwacha (MWK) MWK 449.77 = US$1 US$1 = SDR0.71053510 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS AADT Average Annual Daily Traffic AfDB African Development Bank AICD Africa Infrastructure Country Diagnostic ASEAN Association of South East Asian Nations CAS Country Assistance Strategy CBA Cost-Benefit Analysis CFA Clearing and Forwarding Agents COMESA Common Market for Eastern and Southern Africa CPMS Corridor Performance Monitoring System DCC Dar es Salaam Corridor Committee DPC Declaration Processing Center DRC Democratic Republic of the Congo DRTSS Directorate of Road Traffic and Safety Services EAC East African Community EIB European Investment Bank EIRR Economic Internal Rate of Return ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan EU European Union FM Financial Management GAC Governance and Anti-Corruption Action Plan GDP Gross Domestic Product GHG Greenhouse Gas GRSF Global Road Safety Facility HDM Highway Development and Management Model HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome IBM Integrated Border Management IDA International Development Association IFRs Interim Financial Reports IMF International Monetary Fund LPI Logistics Performance Index MDTF Multi Donor Trust Fund MGDS Malawi Growth and Development Strategy MIT Ministry of Industry and Trade MoFEPD Ministry of Finance, Economic Planning and Development MWK Malawi Kwacha MoH Ministry of Health MoTPW Ministry of Transport and Public Works, Malawi MRA Malawi Revenue Authority NCB National Competitive Bidding NMT Non-motorized traffic NPV Net Present Value NSC North-South Corridor NSW National Single Window ODPP Office of Director of Public Procurement OSBP One-Stop Border Post PDO Project Development Objective PFM Public Financial Management PIT Project Implementation Team PLR Performance Learning Review PSC Project Steering Committee RA Roads Authority RAP Resettlement Action Plan RECs Regional Economic Communities RFA Road Fund Administration, Malawi ROW Right of way RMF Resettlement Management Framework RSP Road Sector Program RTD Road Traffic Directorate SADC Southern African Development Community SATTFP Southern Africa Trade and Transport Facilitation Project SOP Series of Projects SSATP Africa Transport Policy Program TEU Twenty Foot Equivalent Unit TMSA Trade Mark Southern Africa TSIP Transport Sector Investment Program VOC Vehicle operating costs WB The World Bank WCO World Customs Organization Regional Vice President: Makhtar Diop Country Directors: Colin Bruce Senior Global Practice Director: Pierre Guislain Practice Manager: Supee Teravaninthorn Task Team Leaders: Richard Martin Humphreys/ Sevara Melibaeva REPUBLIC OF MALAWI Southern Africa Trade and Transport Facilitation Program - SOP2 (P145566) TABLE OF CONTENTS Page Data Sheet I. STRATEGIC CONTEXT .................................................................................................1 A. Regional Context .......................................................................................................... 1 The North-South Corridor................................................................................................... 2 B. Country Context ............................................................................................................ 9 C. Sectoral and Institutional Context ............................................................................... 10 D. Higher Level Objectives to which the Project Contributes ........................................ 13 II. PROJECT DEVELOPMENT OBJECTIVES ..............................................................15 A. The Program Objective and Indicators ....................................................................... 15 B. The Project Development Objective (PDO) ............................................................... 16 Project Beneficiaries ......................................................................................................... 16 PDO Level Results Indicators ........................................................................................... 16 III. PROJECT DESCRIPTION ............................................................................................17 A. Project Components .................................................................................................... 17 B. Project Financing ........................................................................................................ 20 C. Series of Project Objective and Phases ....................................................................... 21 D. Lessons Learned and Reflected in the Project Design ................................................ 22 IV. IMPLEMENTATION .....................................................................................................24 A. Institutional and Implementation Arrangements ........................................................ 24 B. Results Monitoring and Evaluation ............................................................................ 25 C. Sustainability............................................................................................................... 25 V. KEY RISKS ......................................................................................................................26 A. Overall Risk Rating and Explanation of Key Risks.................................................... 26 VI. APPRAISAL SUMMARY ..............................................................................................30 A. Economic Analysis ..................................................................................................... 30 B. Technical ..................................................................................................................... 33 C. Financial Management ................................................................................................ 33 D. Procurement ................................................................................................................ 34 E. Social (including Safeguards) ..................................................................................... 35 F. Environment (including Safeguards) .......................................................................... 36 G. Gender Issues .............................................................................................................. 37 H. World Bank Grievance Redress .................................................................................. 38 I. Other Safeguards Policies Triggered .......................................................................... 38 Annex 1: Results Framework and Monitoring .........................................................................39 Annex 2: Detailed Project Description .......................................................................................46 Annex 3: Implementation Arrangements ..................................................................................52 Annex 4: Implementation Support Plan ....................................................................................65 Annex 5: Economic Analysis .......................................................................................................69 Annex 6: Background on the North-South Corridor ...............................................................79 Annex 7: Governance and Anti-Corruption Action Plan ......................................................100 Annex 8: Selection and Prioritization of Accident Blackspots ..............................................106 MAP IBRD 41090 PAD DATA SHEET Republic of Malawi Southern Africa Trade and Transport Facilitation Program - SOP2 (P145566) PROJECT APPRAISAL DOCUMENT AFRICA Report No.: PAD916 Basic Information Project ID EA Category Team Leader(s) P145566 B - Partial Assessment Richard Martin Humphreys, Sevara Melibaeva Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ X ] Project Implementation Start Date Project Implementation End Date 01-May-2015 30-Jun-2021 Expected Effectiveness Date Expected Closing Date 31-Aug-2015 31-Dec-2021 Joint IFC No Practice Senior Global Practice Country Director Regional Vice President Manager/Manager Director Supee Teravaninthorn Pierre Guislain Colin Bruce Makhtar Diop Borrower: THE REPUBLIC OF MALAWI Responsible Agency: Roads Authority Contact: Trevor Hiwa Title: CEO Telephone No.: +2651753699 Email: [email protected] Project Financing Data(in USD Million) [ ] Loan [ ] IDA Grant [ ] Guarantee [ X ] Credit [ ] Grant [ ] Other Total Project Cost: 69.00 Total Bank Financing: 69.00 Financing Gap: 0.00
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