AFRICAN DEVELOPMENT FUND

PROJECT TO DEVELOP THE -KAMUESHA SECTION OF THE TSHIKAPA-MBUJI MAYI ROAD AND REHABILITATE RELATED RURAL INFRASTRUCTURE

COUNTRY: DEMOCRATIC REPUBLIC OF CONGO (DRC)

PROJECT APPRAISAL REPORT Date: August 2014

Team Leader A. D. BIZONGO, Senior Transport Engineer OITC.1/CDFO 6341 J. P. M. KALALA, Chief Socio-economist OITC.1 3561 J. P. MEGNE EKOGA, Transport Economist OITC.1/CDFO 6368 K. LAAJILI, Agro-economist OSAN.2 2760 M. L. KINANE, Environmentalist ONEC.3 2933 D. P. MARINI, Procurement Specialist ORPF.1/CDFO 6358 Team Members V. A. LOSSOMBOT, Financial Management ORPF.2/CDFO 6348 Specialist Project Team S. MBUYI MWAKANA, Disbursement FFCO.3/CDFO 6344 Specialist S. BAIOD, Environmentalist Consultant -- Sector Division Mr Jean Kizito KABANGUKA OITC.1 2143 Manager Mr Dougou KEITA OSAN.2 2086 Mr Amadou OUMAROU OITC 3075 Sector Director Mr Chiji Chinedum OJUKU OSAN 2042 Regional Director Mrs Marlène KANGA ORCE 2251

A. KARANGA, Chief Transport Economist OITC.1 2607 X. BOULENGER, Chief Irrigation Engineer OSAN.2 2390 A. DIAW, CPO ORCE/CDFO 6347 B. ZALI ZALI, Water and Sanitation Expert OWAS.1/CDFO 6340 Peer Reviewers A. TANDINA, Transport Engineer OITC.1/MLFO 7214 H. FELLAH, Principal Agro-economist OSAN.2 2262 P.H. SANON, Consultant ONEC.3 5828 P.C. OUEDRAOGO, Procurement Officer OSHD 6103

AFRICAN DEVELOPMENT FUND

DEMOCRATIC REPUBLIC OF CONGO (DRC)

PROJECT TO DEVELOP THE TSHIKAPA-KAMUESHA SECTION OF THE TSHIKAPA-MBUJI MAYI ROAD AND REHABILITATE RELATED RURAL INFRASTRUCTURE

OITC DEPARTMENT

November 2014

Translated document

TABLE OF CONTENTS

I – STRATEGIC THRUST AND RATIONALE ...... 1 1.1. Project Linkages with Country Strategy and Objectives ...... 1 1.2. Rationale for Bank Involvement ...... 1 1.3. Aid Coordination ...... 2

II – PROJECT DESCRIPTION ...... 2 2.1. Project Components ...... 3 2.2. Technical Solutions Adopted and Alternatives Explored ...... 3 2.3. Project Type ...... 5 2.4. Project Cost and Financing Arrangements ...... 5 2.5 Project Target Area and Beneficiaries ...... 6 2.6. Participatory Approach for Project Identification, Design and Implementation ...... 6 2.7 Bank Group Experience and Lessons Reflected in Project Design ...... 7 2.8. Key Performance Indicators ...... 8

III – PROJECT FEASIBILITY ...... 8 3.1. Economic and Financial Performance...... 8 3.2. Environmental and Social Impact ...... 9

IV –PROJECT IMPLEMENTATION ...... 12 4.1. Implementation Arrangements ...... 12 4.2. Monitoring and Evaluation ...... 15 4.3. Governance ...... 15 4.4. Sustainability...... 16 4.5. Risk Management ...... 17 4.6. Knowledge Building ...... 17

V – LEGAL FRAMEWORK ...... 17 5.1. Legal Instrument ...... 17 5.2. Conditions Associated with Bank Involvement ...... 17 5.3. Compliance with Bank Policies ...... 18

VI – RECOMMENDATION ...... 18

APPENDIX I. COUNTRY'S COMPARATIVE SOCIO-ECONOMIC INDICATORS

APPENDIX II. TABLE OF AFDB PORTFOLIO IN THE COUNTRY

APPENDIX III. MAJOR RELATED PROJECTS FINANCED BY THE BANK AND OTHER DEVELOPMENT

PARTNERS IN THE COUNTRY

APPENDIX IV. MAP OF PROJECT AREA

APPENDIX V. MAP SHOWING PROGRESSIVE DEVELOPMENT OF NR1 - TSHIKAPA- MBUJI MAYI ROAD

ANNEXES

Currency Equivalents [August 2014]

UA 1 = USD 1.53131 UA 1 = EUR 1.14456 UA 1 = GBP 0.90701 UA 1 = CDF 1 433.90681

Fiscal Year 1 January - 31 December Weights and Measures 1 metric tonne = 2 204 pounds 1 kilogramme (kg) = 2. 200 pounds 1 metre (m) = 3.28 feet 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.62 mile 1 hectare (ha) = 2.471 acres Acronyms and Abbreviations AAH Action Against Hunger AAP Advance Action on Procurement AFD French Development Agency AfDB African Development Bank CDF Congolese Franc COPIREP Public Enterprise Reform Steering Committee CSP Country Strategy Paper DFID Department for International Development (UK) DRC Democratic Republic of Congo DVDA Directorate of Farm Roads DWS Drinking Water Supply EA Executing Agency ECCAS Economic Community of Central African States ERR Economic Rate of Return ESMP Environmental and Social Management Plan EU European Union FONER National Road Maintenance Fund GHG Greenhouse Gas GPRSP Growth and Poverty Reduction Strategy Paper GTITNH Infrastructure, Transport, ICT and Housing Thematic Group HHS Hygiene, Health and Security HIPC Heavily Indebted Poor Countries HIV-AIDS Human Immunodeficiency Virus –Acquired Immunodeficiency Syndrome HTTD Net of Taxes and Customs Duty IU Infrastructure Unit JICA Japanese International Cooperation Agency LRMC Local Road Maintenance Committee Ministry of Regional Development, Town Planning, Housing, Infrastructure, Public Works and MATUHITPR Reconstruction MINAGRIDR Ministry of Agriculture and Rural Development NGO Non-Governmental Organization i

NIS National Institute of Statistics NPV Net Present Value NR 1 National Road 1 OdR Roads Authority OHADA Organization for the Harmonization of Business Law in Africa PA Project Area PCR Project Completion Report PDNT National Transport Master Plan PP Procurement Plan PPP Public-Private Partnership PRESAR Agricultural and Rural Sector Rehabilitation Project PRSP Poverty Reduction Strategy Paper Rural Access Index (% of rural population in the PA with direct access to an all-season road RAI within a 2-km radius). REC Regional Economic Community RISP Regional Integration Strategy Paper SADC Southern African Development Community SNHR National Rural Water Service SSADR Agricultural Sector and Rural Development Strategy STD Sexually Transmitted Disease TFP Technical and Financial Partner TI Transparency International UA Unit of Account MUA Million Units of Account USD United States Dollar VOE Vehicle Operating Expense WAEMU West African Economic and Monetary Union WB World Bank

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Project Information Sheet Client Information Sheet BORROWER: Democratic Republic of Congo (DRC)

EXECUTING AGENCY: Infrastructure Unit (IU) of the Ministry of Regional Development, Town Planning, Housing, Infrastructure, Public Works and Reconstruction (MATUHITPR) Financing Plan Source of Financing Amount (UA) Instrument

ADF GRANT 74.000.000 ADF XIII Grant

TOTAL COST 74.000.000

Key ADF Financing Information

Grant Currency Unit of Account Type of Interest Not Applicable Interest Rate Margin Not Applicable Other Charges Not Applicable NPV (baseline scenario) USD 149.8 million ERR (baseline scenario) 28%

Timeframe – Main Milestones (expected) Concept Note Approval April 2014 Project Approval December 2014 Effectiveness January 2015 Completion June 2019 Last Disbursement December 2019

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PROJECT EXECUTIVE SUMMARY Project Overview

1 National Road 1 (NR1) is the backbone and main artery of the road transport system in the Democratic Republic of Congo (DRC). It links the Banana and ports in the West to in the South up to the Zambian border over a distance of about 3 130 kilometres. It mainly serves the Bas-Congo Province, the city of Kinshasa as well as the , West Kasaï, East Kasai and Katanga Provinces, which are home to much of the Congolese population. Lastly, it links Mbuji Mayi to NR2 which serves the towns of (South-Kivu) and (North-Kivu) located in the East of the country, thereby making it possible to connect to Rwanda and Burundi. 2. It is also a community road of great importance to Central Africa, being part of the First Priority Programme of the Central African Consensual Transport Master Plan (PPP/PDCT-AC). In fact, it is located along Development Corridors CD-07 (Pointe Noire-Dolisie-Brazzaville- Kinshasa-Kikwit-Tshikapa-Mbuji Mayi-Mwene Ditu--Nguba-Likasi-Lubumbashi- Sakania), CD-08 (Matadi,-Kinshasa-Kikwit-Mbuji Mayi-Kasongo-Bukavu-Bujumbura) and CD-09 (Matadi-Kinshasa-Kikwit-Mbuji Mayi-Kasongo-Bukavu-Gisenyi-Kigali). 3. This project seeks to develop the Tshikapa-Kamuesha section (87 km) of the Tshikapa- Mbuji Mayi road and rehabilitate related agricultural and rural infrastructure in West Kasaï Province. This province is greatly isolated, owing to the very advanced state of degradation of its road network. The primary sector, comprising agriculture, livestock breeding and mining is the main activity sector of the province. Although agriculture is the dominant branch, diamond mining represents 12.4% of the primary sector. The rural infrastructure connected to National Road 1 (NR1) will foster local development and facilitate trade and the movement of people and goods under acceptable conditions. The direct project area has an estimated population of 1 750 000 people, with 892 000 women, i.e., about 51% of the total population. 4. The project will help to open up the West Kasaï Province by linking it to the neighbouring Bandundu Province and the city-province of Kinshasa. It will also contribute to improving food security, stepping up the availability of agricultural products and building the capacity of support services, vocational training and social integration agencies and grassroots communities. The project total cost is UA 74 million. It will be financed entirely by an ADF grant and implemented over a five-year period. Needs Assessment 5. The rehabilitation operations started on NR1are in keeping with the Government’s Strategy, based on the progressive development and paving of the country’s above-mentioned trunk road sections. The project is a continuation of operations carried out by the Bank and other donors (European Union and the World Bank) as part of the development of NR1, and support to rural sector development (BTC, DFID) which are having a significant impact on the economy. Only the 1 256 km Banana-Muanda-Matadi-Batshamba-Mbuji Mayi-Mwene Ditu-Nguba- Kasumbalesa section, that is about 40.34% of NR1, is completely paved. Resources have already been mobilized for the sustainable development of the Batshamba-Tshikapa section (Batshamba- Loange, 114 km long, EU financing; Loange-Lovua, 63 km long, AfDB financing; Lovua-Tshikapa, 56 km long, AfDB financing). The next section is Tshikapa--Mbuji Mayi (437 km), for which there is a Bank-financed preliminary design study. This project will develop the Tshikapa-Kamuesha section (87 km) and rehabilitate related agricultural and rural infrastructure. The European Union is financing the Kamuesha-Kananga section. So, out of the 437 km that make up the Tshikapa-Mbuji Mayi section, 237 km representing 54.23% of the total distance will be paved by 2020. The Government is currently sourcing funds from other iv

financial partners to finance 200 km (45.77% of this section), its objective being to reach the town of Mbuji Mayi in the medium term. 6. Furthermore, to improve the well-being of the population in line with the Millennium Development Goals (MDGs), the investment needs of the agricultural and rural sector for the decade 2011-2020 have been evaluated at USD 945.4 million (UA 590 million). As such, the Bank’s projects in the sector are notably aimed at improving food security and the population’s socio-economic conditions through access and marketing infrastructure, employment promotion and the building of the capacity of the key sector operators. Bank’s Value Added

A strategic partner for DRC, the Bank’s intervention is required to support the country’s multi-faceted development and poverty reduction efforts. The Bank’s support under this project is particularly vital, given that: (i) the Bank financed the preliminary design studies of the road to be rehabilitated; (ii) the Bank already financed 4 sections on NR1 (Nsele-Lufimi, Kwango-Kenge, Loange-Lovua and Lovua- Tshikapa), PARSAR, PRESAR and PADIR, and has the required operational experience and technical expertise to implement this project; (iii) NR1 is a major corridor which is expected to fully play its role as main transit and domestic and inter-region trade corridor between Central Africa, East Africa and Southern Africa; (iv) the support helps to consolidate the rural development actions initiated by the Bank through already completed projects (PARSAR and PRESAR) and ongoing projects (PADIR and PRISE). Thanks to this operation, the Bank will also strengthen its comparative advantage acquired from the above-mentioned projects. Knowledge Management Knowledge generated by the project will be managed through the project’s “monitoring and evaluation” component whose implementation, including impact assessment by beneficiaries, will be entrusted to the National Institute of Statistics (NIS). With the rich experience this institution has already acquired from the Loange-Tshikapa section, it should supplement and readjust the key impact indicators to ensure an efficient evaluation of the Tshikapa-Kamuesha Project and the generation of information on outcomes and outputs produced. This knowledge will be fed into the country’s road and socio-economic development databases in the Ministries of Infrastructure and Agriculture and Rural Development, the Infrastructure Unit (IU), the Roads Authority (OdR) and the Directorate of Farm Roads (DVDA). It will be disseminated through the Bank’s website, annual reports, the completion report and ADF’s post-evaluation review. It will also be used to update country strategy papers.

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VIII. Results-Based Logical Framework Country and Project Name: Democratic Republic of Congo –Project to Develop the Tshikapa-Kamuesha Section of the Tshikapa-Mbuji Mayi Road and Rehabilitate Related Rural Infrastructure Project Goal: To improve the service level of the transport logistics chain on the Tshikapa-Kananga road as well as the living conditions of the population in the project area. PERFORMANCE INDICATORS MEANS OF RISKS/ RESULTS CHAIN Indicator Baseline Situation Target VERIFICATION MITIGATION MEASURES (including CSI)

Contribute to opening up the West Kasaï 1.Percentage of road network of common 1. In 2014 : 13% 1. 15% in 2017 and 20% in 2019 MATUHITPR, NIS, UNDP Province and reducing poverty among the interest in good state 2. In 2014 : 40.34% 2. 40% in 2017 and 49% in 2019 and MINAGRIDR Statistical population 2. Percentage of paved section of NR1 3. 59% currently 3. 55% in 2017 and 52% in 2019 Reports

IMPACT 3. Poverty rate Length of NR1 from IU Outcome 1: The service level and mobility 1.1 Travel time 1.1 In 2014 : 7h 1.1 In 2019 : 1.5h Sources : M&E Reports Risk: on the Tshikapa-Kananga section improved 1.2 Traffic level 1.2 in 2014 : 8h veh/d Impact assessment reports Lack of upkeep and maintenance of the road 1.3 Rural access index 1.3 In 2014 : 5% 1.2 In 2019 : 232 veh./d Annual reports from and rural roads 1.4 Vehicle operating expenses (VOE) for a 1.4 In 2014 : USD 1.3 In 2019 : 25% MINAGRIDR, Mitigation Measures light duty vehicle ( LDV) 0.83 /Km 1.4 In 2019 : USD 0.37 /Km MATUHITPR, Ministry of - Scheduling by OdR and DVDA in Outcome 2: Living conditions of the 2.1 Rate of access to drinking water 2.1 In 2014: 12% 2.1 In 2019 : 40% Trade, Roads Authority and Infrastructure Unit conjunction with FONER of the maintenance population in the PA improved 2.2 Direct jobs created 2.2 In 2014: 0 2.2: In 2017 : 10 000 h/m and 25 000 of roads of networks of national common 2.3 Average income per farmer/ trader 2.3 In 2014: USD 3 h/m in 2019, of which 25% for Methods: Surveys, Document review, interest, especially NR1 which is a top 2.4 Agricultural product marketing rate 80 women priority, and rehabilitated roads

OUTCOMES Statistics 2.4 In 2014: 45% 2.3 : USD 500 in 2017 and USD 660 -Training of LRMCs and commitment by in 2019 DVDA to include rehabilitated roads in its 2.4: 55% in 2017 and 60% in 2019 priority maintenance schedule - Establishment of the Provincial Road Committee

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1. Sections of the road upgraded 1. Length of road asphalted 1. 0 km 1. : 87 km in 2019 Sources: Risk : Works cost overrun 2 Related infrastructure constructed 2. Length of roads rehabilitated 2. 0 km 2. : 100 km in 2017 and 368km in - Monitoring reports by IU, 3. Studies 2. Number of market and DWS facilities 2. 0 2019 control firm, MATUHITPR, Mitigation Measures 4. Capacity of beneficiaries built constructed 3. 0 2. : 15 in 2017 and 36 in 2019 service providers and (i) Realistic project cost estimates based on the unit prices of similar past procurements, 5. Road maintenance local committees 3. Number of studies conducted 4. 0 3. : 1 supervision missions, mid- (ii) Engineering studies have been finalized of road maintenance (CLER) and labor 4. Number of people sensitized 4. 0 4. : 3000 in 2017 and 8000 in 2019, term review and PCR 4. Number of entities supported 4. 0 50% of them women - Financial reports and audit and updated; (iii) a special provision for price intensive team leaders trained and 4. Number of people trained 4. : 4 in 2017 and 10 in 2019 reports submitted escalation is taken into account to reflect operational 5.Number of CLER and labor intensive team 5. 0 4. : 500 in 2017 and 1500 in 2019, foreign exchange rate fluctuations and increase in the prices of some inputs and; (iv)

OUTPUTS leaders trained and operational 60% of them women 6. Number of centres and platforms operational 6. 0 5. 8 – 20 in 2017 and 15 – 37 in 2019 the selection of contractors and control firms 6. Multipurpose centres and platforms is open to international competitive bidding established and operational 7. Number of reports produced 7. 0 6.: 2 platforms in 2017 and 6 in 2019 and 1 centre in 2017 and 3 in 2019 7. : 12 quarterly financial reports and 7. Project management and monitoring 4 audit reports

ensured

COMPONENTS RESOURCES

A. Infrastructure Component A: UA 61.16 million B. Capacity Building and Studies Component B: UA 1.70 million C. Project Management and Monitoring Component C: UA1.42 million Price Escalation and Physical Contingencies: UA 9.72 million

KEY ACTIVITIES KEY Total Project Cost : UA 74.00 million

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N°No. Nom Task de la Name tâche 2015 2016 2017 2018 2019 2020 2021 1 GENERAL T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 1 ACTIVITES GENERALES ACTIVITIES 2 Approbation du Projet par le Conseil du FAD 2 Project 3 Mise en vigueur du Don FAD 05/01 Approval by ADF 4 BoardDate duof Directorspremier décaissement 17/02 35 Date duADF dernier Grant décaissement 31/12 6 EffectivenessMissions de supervision 154 Mission Date d'achèvement of First 16/03 16 COMPOSANTEDisbursement A : INFRASTRUCTURES 175 TRAVAUX Date ofROUTIERS Last 18 DisbursementProcessus de passations du marché de travaux jusqu'à notification AOI 196 EXECUTIONSupervision DES TRAVAUX ROUTIERS 20 Mission Installations de chantier, ouvertures de carrières, études d'execution entreprise 2115 CompletionExecution des travaux routiers sur la RN1 entreprise 22 Mission Sensibilisation à la sécurité routière, au VIH/SIDA, à l'environnement, à la maternité précoce 15/02 2316 COMPONENTREHABILITATION A: DES INFRASTRUCTURES RURALES 24 INFRASTRUCTUREEtudes d'execution des pistes rurales et infrastructures agricoles 15/02 2517 ROADExecution des travaux des infrastructures rurales (pistes, quais, marchés entrepots, forages, etc... ) entreprise 26 WORKS Execution des amenagements connexes 2718 WorksRéhabilitation des batiments 02/01 28 procurement processEquipement des batiments 01/12 29 up to contract awardMesures spécifiques pour les femmes 01/01 3019 CONTRÔLE ET SURVEILLANCE DES TRAVAUX ROUTIERS 31 EXECUTIONProcessus OF de passations de marché C&S jusqu'à notifications AOI 32 ROADExecution WORKS des prestations de surveillance de travaux Mission de Contrôle 20 33 SENSIBILISATIONS, FORMATIONS et ORGANISATION des BENEFICIAIRES Installation of 34 Processus de passations de contrats jusqu'à notification AON worksite, opening of 35 quarries, finalExecution design des prestations de sensibilisation , ONG 1 36 COMPOSANTEstudies B : RENFORCEMENT DE CAPACITES ET ETUDES 3721 Etudes des routes en direction de l'Angola(219km) 38 ExecutionProcessus of road de passations de contrats jusqu'à notification 18/02 39 works Etudeon NR1 de faisabilité route Tshikapa- Mungamba-Kamako 28/10 4022 Etude de faisabilité route Mungamba-Kandjaji 28/10 41 SensitizationAppui au Divisions on road Provinciales de MINDR, MINAGR, MENCT, MINGENRE, MINAS 01/08 42 safety,Apui aux HIV/AIDS, centres de the réinsertion sociale et aux instituts techniques agricoles 02/01 43 environment,Animation rurale early 01/06 44 pregnancy,Appui à la Commissionetc. Nationale de Prévention Routière (CNPR) 02/01 4523 Appui à la mise en place et au fonctionnement de la Commission Provinciale Routière (CPR) du KASAï 27/03 46 COMPOSANTEREHABILITATION C : GESTION ET SUIVI DE L'EXECUTION DU PROJET 47 OFFonctionnement RURAL de l'Organe d'Execution 06/01 48 INFRASTRUCTUREINDEMNISATION DES PAP : Execution du PAR 4924 Decret d'Utilité Publique du projet Rural road and 50 Execution du PAR agricultural 51 Processus d'acquision d'un cabinet d'expertise 28/01 infrastructure final 52 design studiesMise en place du Comité du PAR 28/01 CPAR 5325 Enquete publique 54 Execution ofIndemnisations rural CPAR 55 infrastructureAudit works externe du PAR Auditeur externe 56 (ruralSUIVI-EVALUATION roads, docks, DES IMPACTS SOCIO ECONOMIQUES DU PROJET 57 markets,Processus warehouses, de passations des contrats jusqu'à notification Entente directe 58 boreholes,Execution etc. des prestations de suivi-évaluation des impacts INS 5926 Audit comptable et financier du projet 60 ExecutionProcessus of Related d'acquisition AON 61 WorksRéalisation de l'audit comptable et financier 6727 Audit technique du projet 68 RehabilitationProcessus of d'acquisition 31/03 69 buildingsRéalisation de l'Audit technique du projet 7028 1 études d'execution 04/07 71 Equipping of 2 conformitébuildings de la qualité des matériaux terrassements et pistes rurales connexes 06/08 7229 3 conformité technique du projet 18/02 Specific Measures for

Women-

30 CONTROL AND SUPERVISION OF ROAD WORKS 31 C&S procurement process up to contract award viii 32 Delivery of works supervision services 33 SENSITIZATION, TRAINING AND

REPORT AND RECOMMENDATION OF MANAGEMENT TO THE BOARD OF DIRECTORS CONCERNING A PROPOSAL TO AWARD A GRANT TO THE DEMOCRATIC REPUBLIC OF CONGO TO FINANCE THE PROJECT TO DEVELOP THE TSHIKAPA-KAMUESHA SECTION OF THE TSHIKAPA-MBUJI MAYI ROAD AND REHABILITATE RELATED RURAL INFRASTRUCTURE

Management hereby submits this report and recommendation concerning a proposal to award a UA 74.00 million grant to the Democratic Republic of Congo (DRC) to finance the Project to Develop the Tshikapa-Kamuesha Section (87 km) of the Tshikapa-Mbuji Mayi Road and Rehabilitate Related Rural Infrastructure. I. Strategic Thrust and Rationale 1.1 Project Linkages with Country Strategy and Objectives The project is in keeping with DRC’s Growth and Poverty Reduction Strategy Paper (GPRSP 2 2011- 2015) based on two pillars, namely: (i) “Diversifying the Economy, Accelerating Growth and Promoting Employment” and (ii) “Improving Access to Basic Social Services and Strengthening Human Capital”. This strategy seeks in the short and medium term to: (i) link all the provincial capitals by road as some of them are currently accessible only by plane; (ii) enable the main production zones to supply their products under good conditions and within reasonable timeframes; and (iii) create wealth in rural areas in order to reduce poverty and improve food security. The project is also consistent with the Agricultural Sector and Rural Development Strategy (SSADR) for the period 2011-2015 which focuses, among other things, on the rehabilitation of farm roads and marketing infrastructure, the overhauling and development of the production mechanism, private sector support, capacity building and the promotion of community entities. 1.2 Rationale for Bank Involvement 1.2.1 The project is in line with the Bank’s country strategy for DRC (CSP 2013-2017) especially its Pillar 1: Development of Infrastructure to Support Private Investment and Regional Integration. The project will be located in the Centre zone targeted by the CSP. It is in keeping with the spirit of the CSP which recommends the integrated sector interventions approach with a view to creating conditions conducive to private sector development in the Centre zone. In that respect, the project, which seeks to open up the zone internally and externally, as well as provide basic infrastructure and improve the country’s food security, is consistent with Government’s Strategy which lays special emphasis on the rehabilitation of NR1. It will improve the living conditions of the population of the zone and contribute to laying the foundations for sustainable development. The project is also aligned with the Regional Integration Strategy (RISP 2011-2015) which is also centred around one of the two pillars, namely: Regional Infrastructure Development. In fact, NR1 is one of the links of Development Corridors CD- 07, CD-08 and CD-09 (see Point 1 of Project Overview). By adopting the gender approach, the project is implementing the AfDB Gender Strategy (2014-2018), particularly its second and third pillars which deal respectively with women’s economic empowerment, and knowledge management and capacity building. 1.2.2 Moreover, the project is consistent with the key objectives of the Bank’s Long-Term Strategy (LTS) 2013-2022 which prioritizes increased commitment in fragile States and the development of basic infrastructure for inclusive growth through an integrated value chain approach, with emphasis on food and nutritional security. It is also in keeping with the Bank’s strategy to address fragility and strengthen resilience in Africa thanks to inclusive and equitable access to basic services by the population. It is also aligned with the Agricultural Sector Strategy (2010-2014) whose common objective is poverty reduction through aspects such as the improvement of transport and marketing infrastructure, increased agricultural productivity, private sector support and the building of the capacity of the various partners. The project’s activities to develop NR1-related agricultural and rural 1

infrastructure will fully support the achievement of the objectives of the Government and the Bank and will further enhance the impact of the operations of PRESAR and PADIR in West Kasaï as well as those of the other development partners. In addition, the project’s drinking water component will help to extend to and reinforce in the Congolese rural areas the Bank’s support in the domain which is currently limited to urban and peri-urban areas (PRISE).

1.3 Aid Coordination The table below outlines the various donor operations in the Democratic Republic of Congo.

Table 1.1: Summary Table of Donor Operations Scope Sector or Sub-sector* GDP Exports Labour Transport, Agriculture and Rural Development, including Forestry [50%] [10%] [70%]

Stakeholders – Annual Public Expenditure (2005-2013 averages) * Government (USD million) Donors Amount (USD million) [%] 8 (2% of expenditure) ADF 152.509 6.89 DFID 320.80 14.48 European Union 289.96 13.09 Belgium 190.273 8.59 WB 1 020.33 46.07 Chinese Cooperation 223.34 10.08 Others (IFAD, USAID, Japan, etc.) 17.579 0.79 TOTAL 2 214.791 100 Level of Aid Coordination Yes for agriculture, established under GCP Yes, the Infrastructure, Transport, ICT and Housing Thematic Group (GTITNH) was established in 2010 and resized in 2013. Existence of thematic working groups The National Mechanism for Monitoring and Supervision of the Implementation of the Addis-Ababa Framework Agreement on Peace, Security and Cooperation for DRC Yes for Agriculture, a NAIP (2013-2020) was prepared at end-2013 Existence of a comprehensive sector programme No for Transport– Planned Bank-financed Study on the National Transport Master Plan L : “Infrastructure”, “Statistics” and “Energy” groups – AfDB’s role in aid coordination M : Other groups L : Lead Agency; M: member (not lead agency): None : No role (*) Sources : Ministry of Planning The other sector donors are: (i) the World Bank; (ii) BADEA; (iii) German Cooperation (GIZ); (iv) Department for International Development (DFID); (v) Belgian Cooperation; (vi) Japanese International Cooperation Agency; and (vii) the European Union with whom consultations were conducted during the preparation of this project to ensure the harmonization of activities. Donor coordination is ensured through regular meetings of the Infrastructure, Transport, ICT and Housing Thematic Group (GTITNH). In fact, since 2009, efforts have been made to ensure better harmonization of operations through the various Thematic Groups and inter-donor discussions. These discussions notably led in June 2012 to the establishment of the Partners Coordination Group (GCP) of which the Bank is member and, in 2013, to the establishment of the National Mechanism for Monitoring and Supervision of the Implementation of the Framework Agreement on Peace, Security and Cooperation for DRC. Aid coordination in the agricultural and rural sector is ensured by Thematic Group 9 whose co-secretariat is run by the FAO-IFAD-WFP partnership, assisted by the very active Inter-donor Group for Agriculture and Rural Development (GIBADER). In addition to joint portfolio reviews conducted with the World Bank, the Bank Country Office undertakes joint field missions, particularly with TFPs operating in the same sectors. The Country Office is leader of the “Infrastructure” and “Statistics” groups, as well as the “Energy” sub-group. MATUHITPR’s Infrastructure Unit manages and

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coordinates all transport sector projects financed by TFPs. Here, it acts as a TFP-financed projects programming, coordination and management platform. II. PROJECT DESCRIPTION 2.1 Project Components 2.1.1 The project sector objective is to contribute to opening up West Kasaï Province and reducing poverty among the population. Specifically, the project seeks to improve the service level of the transport logistics chain on the Kinshasa-Kikwit-Batshamba-Tshikapa-Kananga road as well as the living conditions of people in the project area. 2.1.2 The project comprises three components, namely: (i) Infrastructure; (ii) Capacity Building and Studies; and (iii) Project Management and Monitoring. Gender, road safety, AIDS control, Ebola fever control and environmental protection issues will be incorporated into all these components in a cross- cutting manner.

Table 2.1: Summary of Project Components No. Component Name Description A.1.Upgrading of NR1 over a distance of 87 km, including provision of space for laying of optic fibre, rest areas and environmental protection measures - Tshikapa-Kamuesha Section; A.2. Awareness-raising among the population on road safety, HIV/AIDS, Ebola fever and the environment; A.3. Control and supervision of road works, sensitization and environmental measures; A.4. Agricultural and rural infrastructure rehabilitation (368 km of rural roads, 10 abattoirs, 3 ferry docks, 10 rural markets, 13 warehouses, 13 latrines, 5 water supply systems, 100 water sources, 25 boreholes, etc.); INFRASTRUCTURE A A.5.Rehabilitation of buildings (administrative buildings, 2 technical agricultural training

institutes, 5 premises for rehabilitation and vocational training centres; training of local operators, team leaders of labor intensive work; A.6. Equipping of buildings: scales (markets), solar panels and generators (markets, institutes, rehabilitation centres, administrative buildings, etc.); A.7. Special measures for women (multipurpose platforms, the Tshikapa, Kakumba and Kamuesha multipurpose centres, supply of graters, shellers and other processing equipment, etc.) ; A.8. Control and supervision of related rural infrastructure rehabilitation works, sensitization and environmental measures B.1. Support to the National Road Safety Commission (CNPR); B.2. Support for the establishment of West Kasaï Provincial Road Commission (CPR); B.3. Support to Provincial Services of MINADR, the Environment, the Ministry of Gender and the Ministry of Social Affairs; B.4. Support to ONGD/social rehabilitation centres and to technical agricultural training institutes; CAPACITY BUILDING B.5. Sensitization, training and organization of beneficiaries (MINADR, MINECNT, B AND STUDIES MINGFE, MINAS, ONGD), building of the structural and organizational capacity of farmers’ organizations, notably women’s organizations, and training and equipping of community infrastructure management committees; B.6. Agricultural Advisory Services; B.7. Various studies (rural infrastructure and feasibility study on the Tshikapa- Mungamba-Kamako and Tshikapa-Mungamba-Kandjaji road stretching 219 km towards Angola). C.1.Financial and accounting audit; PROJECT C.2. Project technical audit; C MANAGEMENT AND C.3. Project socio-economic impact monitoring and evaluation; MONITORING C.4.Functioning of the project Executing Agency; C.5. Compensation of the population and functioning of the Resettlement Committee

2.2 Technical Solutions Adopted and Alternatives Explored 2.2.1 The cross-section of the road adopted is consistent with the community cross-section adopted by ECCAS countries for the implementation of the Central African Consensual Transport Master Plan (PDCT-AC). It provides for a 10-m wide platform with a 2x3.5m wide paved roadway and 2 shoulders

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measuring 1.5m each. Where the road crosses big villages, the platform will be 12 m wide, with an 8-m paved roadway and 2 shoulders measuring 2 m each. Depending on the land relief, the reference speeds adopted for the vertical alignment and the horizontal alignment of the road are 90 km/h, 60 km/h or 50 km/h. 2.2.2 The pavement structure adopted includes: (i) a sub-grade of varying thickness, generally made up of silty sand; (ii) a 20-cm thick sub-base made of well compacted silty sand to prevent or minimize the punching effect of sub-base course aggregates; (iii) a 20-cm thick crushed 0/31.5 aggregate base course; and (iv) a 4-cm asphalt concrete roadway. The shoulders will have a single-layer coating. The pavement structure described above will be checked and confirmed in the draft working design to be prepared by the works contractor. 2.2.3 Works on rural roads comprise mechanized sunning, road opening and platform reloading with gravelly material, and fine gravel for the roadway, followed by compacting. Drainage ditches will be constructed using the highly labour intensive (HIMO) method in accessible areas and mechanically in inaccessible areas. The rural road will be 6m wide, including the shoulders with a curved cross section per the DVDA standards. For enhanced durability, the technical option consists in constructing final reinforced concrete crossing facilities (bridges, culverts and box drains). The works will be carried out by SMEs and specialized jobbers in the form of mixed HIMO and mechanized works. The technical alternatives explored and the reasons for their rejection are presented in the table below.

Table 2.2: Alternatives Explored and Reasons for their Rejection Alternative Brief Description Reasons for Rejection 1. Use of cement-improved sand for Stabilization using cement Complex implementation technique and base course bad experience on the Kwango-Kenge section.

2. Use of sand-asphalt surfacing Asphalt processed sand Shortage of clean sand for sand-asphalt production and low performance compared to asphalt concrete surfacing

3. Intervention on all PA-related - Rural infrastructure is 3. Location of project activities in basins rural infrastructure or prioritize degraded. Its rehabilitation with high production potential because: basins with high production requires a lot of resources. - investments will be more efficient for potential? - Intervention under this the supply of agricultural products to project must be targeted local markets and the resulting revival given the limited resources. of trade flows It focuses on priority sites - the concentration of activities on selected with the targeted sites will encourage beneficiaries. complementarity and the improvement - HIMO works are carried out of their impacts on the field 4. Rehabilitate more rural roads on less degraded roads. They - rural roads must link up with NR1 to through low unit cost HIMO are light manual works ensure agricultural product evacuation works or resort to semi- - Light equipment is used for 4. Manual rehabilitation of rural roads mechanical works and durable material transport, has many weaknesses resulting from engineering structures (reinforced compacting and construction their level of degradation and PA soil concrete) on a limited network? of reinforced concrete erodibility. Semi-mechanized works are engineering structures. Rural more durable and easy to maintain. roads so constructed are more durable

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2.3 Project Type The project is a stand-alone investment operation. Transport and rural development infrastructure projects in DRC are executed using this type of operation. 2.4 Project Cost and Financing Arrangements 2.4.1 The total project cost, net of taxes and customs duty, is estimated at UA 74 million, that is about USD 113.32 million at the August 2014 foreign exchange rate (UA 1 = USD 1.53131). The estimated project cost is calculated on the basis of preliminary design studies and the unit bidding prices of similar works and services in 2013. This cost includes compensation owed project affected persons covered by ADF II resources. It also includes a provision for physical contingencies fixed at 9.5% of the base cost of works and control, and for price escalation fixed at 5.76% of the base cost plus physical contingencies. The table below summarizes the breakdown of project cost by component. Table 2.3: Project Cost by Component (in UA million) PROJECT COMPONENT PAYMENT CURRENCY TOTAL L C F E A. INFRASTRUCTURE 12.54 48.62 61.16 B. CAPACITY BUILDING AND STUDIES 1.38 0.32 1.70 C. PROJECT MANAGEMENT AND MONITORING 1.39 0.03 1.42 BASE COST 15.31 48.97 64.28 Physical Contingencies 1.24 4.86 6.10 Price Escalation 0.86 2.76 3.62 TOTAL COST 17.41 56.59 74.00

2.4.2 The project will be financed entirely by ADF since DRC fulfils the requisite criteria for its counterpart contribution to be 100% waived, pursuant to Provision 4.2.2 of the Policy on Expenditure Eligible for Bank Group Financing (Ref. ADB/BD/2007/106/Rev.1, revised version of 19 March 2008). The argument relating to these three key criteria chosen under this provision, namely: country’s commitment to implement its overall development programme; financing allocated by the country to the sectors targeted by Bank assistance; and country’s budget situation and debt level, is developed in Annex 2 of this report. 2.4.3 The tables below present cost summaries by expenditure category as well as the expenditure schedule. Table 2.4: Provisional Disbursement Schedule PROJECT COMPONENTS UA MILLION TOTAL 2015 2016 2017 2018 2019 A. INFRASTRUCTURE 21.37 24.32 15.47 61.16 B. CAPACITY BUILDING AND STUDIES 0.33 0.55 0.82 0.01 1.70 C. PROJECT MANAGEMENT AND MONITORING 0.47 0.31 0.18 0.18 0.29 1.42 BASE COST 0.80 22.22 25.31 15.66 0.29 64.28 Physical Contingencies 2.13 2.43 1.54 6.10 Price Escalation 0.04 1.25 1.43 0.88 0.02 3.62 TOTAL COST 0.84 25.61 29.16 18.08 0.30 74.00

Table 2.5: Project Cost by Expenditure Category EXPENDITURE CATEGORY UA MILLION L C F E TOTAL A. GOODS 0.98 0.98 B. WORKS 11.86 47.19 59.05

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C. SERVICES 1.83 1.78 3.61 D. MISCELLANEOUS 0.64 0.64

BASE COST 15.31 48.97 64.28 Physical Contingencies 1.24 4.86 6.10 Price Escalation 0.86 2.76 3.62 TOTAL COST 17.41 56.59 74.00

2.5 Project Target Area and Beneficiaries 2.5.1 The NR1 section targeted by this project is located entirely in West Kasaï Province, one of the eleven provinces of the Democratic Republic of Congo, situated in the centre-south of the country. It covers a surface area of 157 579 square kilometres, that is 14.9% of the national territory, with a population of 5 296 347. Women make up a majority of 50.94%. Fifty per cent of the PA population is less than 15 years old. This figure increases to 60% when people below 20 years of age are considered (source NIS). Administratively, the province comprises: (i) one town (Kananga); (ii) an administrative unit with the status of a town (Tshikapa); and (ii) two districts (Kasaï and Lulua) with 10 territories, 50 sectors and 626 groupings. The project will directly or indirectly target about 40% of rural households in West Kasaï Province (400 000 families). The project will also benefit production support service promoters (craftsmen, service associations, carriers, collectors, etc.), senior technical officers of the relevant ministries in the territory, as well as NGOs operating in the project area. As a result, in addition to the large population of women and youth under the age of 20, local communities and economic operators will also benefit from the construction of basic infrastructure and the revival of economic activities in the region. 2.5.2 The project target area comprises part of Tshikapa and five big villages (Kawele, Biakabomba, TokaKasonga, Kakumba and Katalay) crossed by the project road. The main activities in the PA at present are diamond mining and marketing, despite the presence of many maize, cassava, groundnut, cowpea and palm oil production basins. Mining right holders with mining concessions do not allow small-scale diamond mining and agricultural activities on their concessions. This has led to: (i) a drop in diamond production and (ii) a decline in agricultural activity resulting from reduced available farmland. This decline in activity is also largely due to the difficult access to production nes, the dilapidated state and/or remoteness of agricultural product marketing, conservation and processing infrastructure (markets, warehouses, storage facilities, etc.) and the deficiency of State support and supervision services. The revision of DRC’s Mining Code being finalized and this project will provide a better solution for the revival of the agricultural sector and economic activities in the PA.

2.6 Participatory Approach for Project Identification, Design and Implementation 2.6.1 The various stakeholders were active during project preliminary technical and economic studies and project preparation and appraisal missions. In fact, the participation of the beneficiaries and major players in project design was a concern at every stage in Kinshasa as well as during field trips in Tshikapa and Kananga. In Kinshasa, working sessions were organized not only with the officials of the technical Ministries and services involved in the project, but also with development partners operating in Kinshasa (EU, WB, IFAD, UNDP, DFID, BTC, etc.). 2.6.2 In Tshikapa, the project team organized a participatory meeting at the Council Hall. It was attended by more than 76 people from among the various project stakeholders (administrative authorities, officials of technical services, representatives of women’s, youth, SME and diamond diggers associations and officials of NGOs operating in the area). Similar working sessions were organized during PA visits, notably in Kakumba, Kamuesha, Kamonia and Port-Tit in the Dibumba Municipality in Tshikapa. Moreover, a special working session was held in Tshikapa solely for the representatives of 50 women’s associations in the town.

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2.6.3 These various participatory meetings helped to: (i) better understand the realities experienced by the various PA social groups; (ii) exchange views on project components; and (iii) agree on the related infrastructure that could be constructed under the project. Many associations and non- governmental development organizations (NGDOs) submitted their main proposals in writing as well as the cost estimates for some demands. This information enabled the mission team to decide on the related infrastructure that will benefit the greatest number of people. 2.6.4 Consultations with the other TFPs also helped to arouse interest in operations on NR1 from Kamuesha up to Mbuji Mayi. As a result, the EU has confirmed its intention to adopt the same approach for financing works from Kamuesha to Kananga, covering a distance of 150 km. The participation of stakeholders will continue during the project implementation phase through supervision and mid-term review missions and studies to monitor and assess this project’s impact.

2.7 Bank Group Experience and Lessons Reflected in Project Design 2.7.1 As at 30 September 2014, the Bank’s portfolio in DRC comprised a total of 35 operations for a cumulative amount of UA 759.52 million distributed between 12 national investment projects for a cumulative amount of UA 622.49 million financed by ADF, 4 FSF Window III-financed technical assistance and capacity building operations for a total amount of UA 5.31 million, one national operation under the Forest Investment Programme (FIP) for a total amount of UA 14.67 million and one emergency aid operation for displaced persons in the east of the country for an amount of UA 0.67 million. The portfolio also includes 7 regional operations for a total amount of UA 94.06 million financed by ADF and the NEPAD-IPPF fund and 10 Congo Basin Forest Fund (CBFF) operations for a total amount of UA 22.32 million. The overall current portfolio disbursement rate is 34.22 %. The portfolio comprises 8 at-risk projects, of which 2 national projects (water and energy sectors), 3 CBFF projects and 3 regional projects (transport, agriculture and energy sectors). The transport, agriculture and rural development sectors have 5 projects and two studies, i.e., about 36.5% of the total projects portfolio volume. The detailed table of Bank portfolio in DRC is presented in Appendix II of this report. 2.7.2 The last portfolio performance review in June 2014 noted an improvement in procurement and project financial management, but pointed out weaknesses with respect to adherence to works execution schedules owing to the weak capacity of some project executing agencies and the low performance of some contractors who find it difficult to comply with contractual timeframes, especially for road projects. On the other hand, the main lessons learned from transport, agriculture and rural development sector projects have revealed the need to: (i) have a final working design during project preparation; (ii) open up rural areas through rural roads to reduce post-harvest losses and revive marketing; (iii) concentrate activities in the same project area for greater local development impact rather than spread operations in space; and (iv) build the capacity of senior technical officers to improve the quality of their services. The weaknesses pointed out concern default by some service providers and the poor quality of manually executed rural road works. These weaknesses have had a negative impact on their durability. The above-mentioned lessons were reflected in the design of this project. As such: (i) to address the challenges of opening up rural areas, priority has been given to access and marketing infrastructure; (ii) the choice of mechanizing some rural road works and establishing maintenance committees and involving them in management will enhance the sustainability of the roads; and (iii) the building of the capacity of the technical ministries involved, the use of qualified contractors and a works control firm will help to ensure better quality and durability of the works executed. Moreover, close monitoring by CDFO through support to PIUs, the organization of training sessions on procurement, financial management and disbursement under Bank-financed projects and the conduct of audit recommendation follow-up working sessions will help to ensure closer monitoring of project implementation.

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2.8 Key Performance Indicators 2.8.1 The main expected project outcomes are the following: (i) 87 km of paved roads; (ii) 368 km of farm roads developed; (iii) 10 functional rural markets; (iv) 3 ferry docks; (v) 3 functional women’s multipurpose centres; (vi) 6 functional multipurpose platforms for women; (vii) 10 operational agricultural product processing kits (grater + cassava presses) in the 50 interest groups of the locality; (viii) 10 functional abattoirs; (ix) 5 rehabilitation centres for 2 200 unemployed women and youth; (x) 5 DWS systems; (xi) 25 boreholes; (xii) 100 water sources developed for drinking water supply; and (xiii) 13 functional agricultural product warehouses and storage facilities. Also, more than 80 000 people will be sensitized on HIV/AIDS, road safety, Ebola fever and environmental protection. Lastly, more than 100 senior technical officers and staff and hundreds of members of farmers’ associations and institutions will receive special capacity building training. A feasibility study of the Tshikapa- Mungamba-Kamonia-Kamako-Angola Border and Tshikapa-Mungamba-Kandjaji-Angola Border road will be conducted under this project. 2.8.2 The impact indicators adopted for monitoring the achievement of project development objectives are: (i) agricultural production level; (ii) agricultural and staple product price level; (iii) rural access index (percentage of the rural population living less than 2 km from an all-season road); (iv) traffic level, travel time, vehicle operating expenses; (v) number of direct jobs created; (vi) number of road maintenance local committees of road maintenance (CLER) and labor intensive team leaders trained and operational; (vii) income level per household and per gender; (viii) drinking water supply rate; and (ix) population’s behaviour change in relation to the various themes to be covered by the various sensitization and extension campaigns.

2.8.3 The National Institute of Statistics (NIS) will conduct an in-depth analysis of impact indicators in order to fine-tune the baseline situation before works and assess the socio-economic impacts upon project completion based on the same methodological approach. The IU will monitor the implementation of all project activities and produce half-yearly reports.

III. PROJECT FEAISIBILITY 3.1 Economic and Financial Performance 3.1.1 The analysis of the economic and financial performance of investments to be made was conducted on the 87 km-long Tshikapa-Kamuesha section. The economic analysis was conducted using the HDM IV model based on the cost/benefit analysis between the with- and without-project situations over a 20-year period and a using 12% discount rate. To take into account the varied origins and destinations of vehicles plying this section, the vehicle operating expenses were calculated on the basis of the average prices of inputs identified in the country in recent years. Owing to the development levels adopted, the residual value of investments at the end of the above-mentioned period is 31%. 3.1.2. The expected project benefits are the direct impacts on transportation activities (reduction of vehicle operating expenses and travel time), increased agricultural production and increased income. In a peak year, the project will help to supply to the domestic markets an additional 185 000 tonnes of foodstuff induced by access and marketing infrastructure. The infrastructure will facilitate the marketing of products and reduce post-harvest losses. This will encourage farmers to produce more. In addition, the monthly income of farmers/ traders will increase from USD 380 to USD 660, and additional income generated in the project area through improved agricultural production in a peak year will stand at about USD 613 555. Moreover, the revitalization and opening up of production zones will contribute to retaining the population in rural areas and reducing unemployment problems. The project will create 25 000p/months, of work, with 25% for women. The distribution of agricultural product processing/conservation equipment, the learning of petty trades and the rehabilitation and improvement of the intake capacity of vocational

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training and social rehabilitation centres will facilitate the entrance of 1 500 girls and boys into the working life. 3.1.3 Other non-quantified benefits will also be induced such as: increased added value of agricultural products and productivity of senior officers and other capacity building beneficiaries, the development of marketing and collection activities, greater access to basic services for the population and, in general, reduced poverty rate and improved food security. The investment cost and economic benefits assessment is presented in Table 3.1 below. According to these data, the project is economically viable for the community and the investment is justified.

Table 3.1: Key Economic and Financial Data

Economic Parameters Analysed Results

Economic Rate of Return (ERR) 28.0% Net Present Value (NPV) in USD million 149.8 ERR Sensitivity Test (10% variation in costs and benefits) 24.6% Residual Investment Value after 20 years 31%

3.2 Environmental and Social Impact 3.2.1 The Project to Develop the Tshikapa-Kamuesha Section of the Tshikapa-Mbuji Mayi Road and Rehabilitate Related Rural Infrastructure is classified under Environmental and Social Category 1. Consequently, its design included a complete (road and related infrastructure) Environmental and Social Impact Assessment (ESIA) and a Resettlement Action Plan (RAP) for project affected persons. The ESIA will be supplemented by an assessment of specific negative impacts generated by the rehabilitation of related infrastructure prior to the signing of the contract, the project having been designed in a single lot. The ESIA and RAP summaries were posted on the Bank’s PIC website on 13 August 2014, in accordance with the Rules and Procedures for Category 1 Projects. Negative Impacts 3.2.2 The expected negative impacts are: (i) risk of accidents during works; (ii) risk of river and soil pollution due to accidental spillage of used oil and fuel; (iii) risk of erosion at right-of-way adjustments (cave-ins, landslide, etc.); (iv) risk of soil and air pollution by dust and combustion-related emissions generated by central-mix plants and the concrete plant; (v) piling up of waste materials from works (excavated materials, fill, rubble, etc.) that could be a further nuisance to the population with the risk of respiratory diseases caused especially by dust raised during works. Also, by their very nature, the following road works are likely to generate negative impacts: (vi) clearing of about 160 ha, 50 ha of which are outside the right-of-way, and the felling of close to 95 trees, 50 of them fruit trees; (vii) a modification of the road alignment over a total distance of 20km on the segment (PK 5 to PK 25) at the exit of Tshikapa; (viii) 205 households, that is 2 240 people to be resettled. Similarly, the impacts specific to related infrastructure are: (ix) risk of pollution by septic and organic waste (slaughter areas and marketing platforms) and their health consequences, if measures to contain and treat such wastes are not taken; and (x) the congestion of rural roads during agricultural seasons owing to their narrowness. The impacts of this related infrastructure are by nature, essentially positive (rehabilitation). 3.2.3 The project will not entail any significant destruction of plant cover on the project route or road right- of-way. Nevertheless, some partially or totally protected tree species very close to the road will likely be felled during the construction phase. Some of the activities mainly carried out by women on the right-of-way and in the road’s immediate vicinity, particularly in the Mbondo and Mbumba sectors at the exit of Tshikapa (small vendors of bread, salted fish, cassava, maize, fruits and vegetables, local drinks,

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water, etc.) could be inconvenienced by the discomfort from works and cause direct revenue losses. Positive Impacts 3.2.4 The beneficial impacts of the road and the rehabilitated rural roads on the physical environment will be reflected in the improvement of water management systems which will help to control soil erosion, protect water resources and secure the people living along the road and rural roads against floods. Erosion control works (rolling basins, planting of plant species in earth-bank areas, stabilization of erosion zones, booms, curbs, etc.) will reduce cave-ins and soil loss, thereby helping to sustain the road. Similarly, the planting of roadside trees will enhance the aesthetics of the road and reduce the level of noise, heat and dust nuisances. The positive impacts on the human environment will be reflected in: (i) a reduction in travel time and facilitation of access to administrative, economic, educational and medical centres in Tshikapa and Kamuesha as well as intra-and inter-provincial trade; (ii) the creation of jobs estimated at about 25 000h/month in total; (iii) facilitation of the marketing of agricultural products; and (iv) improvement of access to drinking water. Optimization and Negative Impact Mitigation Programme 3.2.5 To mitigate identified negative impacts during the project implementation phase, works need to be organized and the worksite facilities equipped as recommended in the Contractor’s specifications, under the supervision of the Control Mission. These measures will concern: (i) installation of worksite areas and facilities; (ii) storage and warehousing of materials and products likely to release polluting materials as well as inflammable and dangerous substances; (iii) machine movement and signage plans; (iv) felling of trees and cutting of hedges requiring prior authorization from the decentralized services of GEEC and compensatory planting of nearly 3 000 roadside and shade trees in the town of Tshikapa and in villages; (v) organization of earth-works at borrow sites and their rehabilitation upon completion; (vi) reduction of dust emissions; (vi) collection and evacuation of liquid discharges and solid wastes to mitigate the risk of water pollution; (v) management of erosion risk and regular assessment of soil stability (identification of erosion-prone zones, stabilization of earth banks) ; (vi) strict compliance with labour legislation, etc. 3.2.6 The ESMP, to cost a total of USD 1 825 600, or 1.85% of the total project cost, comprises: (i) impact mitigation by the works contractor (USD 1 480 600); (ii) works supervision (USD 150 000); (iii) implementation of monitoring plan by the Control Mission (USD 195 000); and (iv) the Resettlement Action Plan prepared by the Government taking into account the addition of agricultural assets and business activities (compensation amounting to about USD 223 100). Pursuant to Congo’s institutional provisions, responsibility for monitoring project implementation will be organized and overseen by MATUHITPR, working closely with the Ministry of the Environment, Nature Conservation and Tourism (MECNT) and Congo’s Environmental Evaluation Group (GEEC). MATUHITPR will, through the Infrastructure Unit’s Environmental Unit and the efforts of the Environmentalist from the Roads Authority, assisted by another from the Control Mission (MDC), regularly monitor ESMP implementation until the acceptance of works. Climate Change 3.2.7 The project takes into account aspects relating to the growing of vetiver, sodding and erosion control in response to climate change. As such, the project: (i) includes lamination basins for land slopes above 2%; (ii) adopts discharge structure dimensioning using as reference fifty-year flood flows for PK 2+5, 10+5, 19+5, 30, 33+7, 39+7, 43+4, 45 and 47; and (iii) provides for compensation for the felling of affected trees by planting close to 1 200 roadside and shade trees. In that regard, the project will contribute to mitigating climate change (carbon sequestration and greenhouse gas reduction)

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Gender and Specific Activities for Women 3.2.8 As in most rural areas in DRC, women live under very precarious socio-economic conditions, compounded by gender-based work distribution and all kinds of gender disparities. In areas as isolated as Tshikapa, they not only have to perform daily chores (fetching water and firewood, pounding maize, cooking food, etc.) but also engage in income-generating activities in order to meet the needs of their families. In fact, a significant number of households (80%) owe their survival to women who are the providers of means of subsistence. DRC has certainly ratified all the conventions on gender and has even had a National Gender Policy and an Action Plan since 2004. Nonetheless, there are lingering gender inequalities especially due to the persistence of some customs. For example, about 65% of women and children spend over 90 minutes, or trek 2 to 3 kilometres to fetch water (CAP Survey, 2011), and 61.2% of women are estimated to live below the poverty line, against 59.3% of men. 3.2.9 The territory of Tshikapa which is covered by the project is no exception with respect to women’s difficult living conditions. According to the Tshikapa Provincial Inspectorate (2014), the PA is estimated to have, from nursery to secondary level, some 1 695 schools (most of them dilapidated), 997 teachers, (only 5.6% of them women) and 286 962 students and pupils (barely 38% of them girls). These gender inequalities are seen in other domains of the economic life of this area. Women are also victims of sexual violence. According to the non-governmental organization ODEDEFO (Tshikapa), more than 200 cases of sexual violence were taken to court (Prosecution) in 2012 – 2013. There must be many unreported cases considering that Tshikapa is also a transit area for Congolese turned away from Angola. In 2013, 45 334 people were turned back from Angola (20% of them women) and passed through the town. The women among them would be exposed to sexual violence and remain extremely vulnerable. The same applies to girls on small-scale diamond mining sites in Tshikapa. The Social Affairs Service in Tshikapa recorded (in 2013) some 17 629 vulnerable children on these sites, 57.7% of them girls. 3.2.10 In terms of organization, it should be pointed out that the PA women are well structured into associations. There are more than 50 women’s associations in Tshikapa. They have elected a management committee to represent them. A special meeting was held with the Heads of these associations. They set up women’s home which will be supported by this project. 3.2.11 The revitalization and opening up of production zones will contribute to retaining the population in the rural areas and to reducing unemployment problems. The project will thus help to create jobs for 25 000 p/months, 25% of them for women. The rehabilitation of vocational training and social reintegration centres will enable the integration of 1 500 girls and boys into working life. Improved access to production zones will lighten the chore of supplying agricultural products carried out by women who are the key market players. Also, with the development of water sources, the specifically feminine task of fetching water will be easier and may save time for other activities such as the processing and conservation of agricultural products. 3.2.12 It should be noted that many women-specific activities have been incorporated into the related facilities under this project (see Section 3.13) in order to improve their living conditions. Social Issues 3.2.13 According to the West Kasaï poverty profile (UNDP, 2009), the incidence of poverty is estimated at 55.4%. The situation is even more worrying in very isolated zones such as those in the Tshikapa sector. These populations’ lack of access to basic socio-economic infrastructure is one factor that accounts for the generalized low living standard in the PA. A recent survey in the area (NIS, 2014) highlighted the following facts: (i) 82% of households in the area live in houses with rammed earth walls, dirt floors and straw roofs; (ii) 74% of these households live in crowded accommodation; (iii) almost all rural households do not have access to electricity or drinking water; (vi) 61% of households

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use rudimentary water sources; and (vii) concerning sanitation, no household benefits from waste/ garbage disposal services, and close to 27.5% do not have toilets.

3.2.14 This project will provide many basic facilities (rural roads, water points, multipurpose platforms, rural markets, storage rooms, etc.) which will substantially improve the rate of access to basic services and generate income for poor families and vulnerable people, including women. To boost the socio-economic impact of this project and taking into account the concerns expressed by the PA population, the following measures have been adopted as related facilities: (i) provision of women’s groups with multipurpose centres and multipurpose platforms; (ii) equipping farmers’ associations with Micro Cossette graters for cassava processing; (iii) rehabilitation of related rural and agricultural infrastructure, including access and marketing infrastructure (370 km of rural roads for access to the major agricultural production basins in the PA, 10 markets, 13 warehouses, 10 abattoirs), drinking water supply infrastructure (30 boreholes, 7 DWS networks and 100 water sources), (iv) rehabilitation of 2 agricultural training institutes and premises for the services concerned; and (v) support to some NGOs involved in aid activities and supervision of abandoned children, teenage mothers, girls who are victims of violence, etc. Involuntary Resettlement 3.2.15 In all, 205 households (19 of them headed by women), that is 2 240 people, will be affected by the project. They will lose: (i) homes; (ii) plots of land; (iii) sources of income; (iv) farmland; (v) trees; and (vi) trading stands and stalls. A RAP was prepared, pursuant to Bank Rules and Procedures, with a total cost assessed at about CDF 515 032 000, equivalent to USD 572 259, financed by ADF resources. The implementation and monitoring of the RAP will be organized and supervised by MATUHITPR, in its capacity as Project Owner, and its entities: the Infrastructure Unit (IU) which is the Delegated Contracting Authority and the Roads Authority (OdR), the Works Supervisor. It will rely on the provincial services of OdR, OVD, DVDA, town planning and the environment. The RAP will be implemented by a committee (CPAR) comprising representatives of the IU, OdR, GEEC, DVDA, the local administration, civil society and PAP. The effective payment of compensation, which is also a condition for the start-up of works.

IV. PROJECT IMPLEMENTATION 4.1 Implementation Arrangements Executing Agency 4.1.1 The Project Executing Agency is the Ministry of Regional Development, Town Planning, Housing, Infrastructure, Public Works and Reconstruction (MATUHITPR) through the Infrastructure Unit (IU). The IU, which was established in 2004, assumes the prerogatives of Delegated Contracting Authority for transport sector projects financed by donors (WB, AfDB, EU, DFID, JICA, BADEA, KFAED, etc.). The IU comprises a dedicated multi-disciplinary team bringing together skills in the areas of public works and civil engineering, procurement, administration, finance, monitoring and evaluation, environment and communication. 4.1.2 The project to develop the Loange-Lovua bridge and Lovua-Tshikapa section, financed fully by the Bank, already provides for the hiring of an Engineer (Project Manager), a Procurement Specialist, an Administrative and Financial Officer, a Structural Engineer, a Project Monitoring and Evaluation Expert, and an Accountant. The same team will be maintained for this project’s management and will be reinforced with the addition of an Accountant for bookkeeping and an Agricultural Engineer to supervise the construction of project-related rural infrastructure and the implementation of agricultural advisory, sensitization and capacity building operations. The services of the Engineer (Project 12

Manager), the Procurement Specialist and the Administrative and Financial Officer recruited under the Loange-Lovua road project will be extended to take into account the time lag between the projected completion dates of the two preceding projects. 4.1.3 To ensure successful project implementation, the decentralized services of the Ministry of Agriculture and Rural Development (MINAGRIDR), Ministry of Regional Development, Town Planning, Housing, Infrastructure, Public Works and Reconstruction (MATUHITPR), Ministry of Transport and Highways (MTVC) and the Ministries in charge of Environment and of Gender will be closely involved in project implementation as focal points. The operating and equipment costs related to the implementation of this project will be financed by the ADF grant. Institutional Arrangements 4.1.4 The institutional modalities of the project will be part of the system to be put in place by the Government for the monitoring and harmonization of road infrastructure interventions. A provincial road (CPR) Commission was recently created at the level of the province. This structure which is placed under the authority of the Governor of the Province, deals with the monitoring of the road projects, agricultural services and feeder roads. It. Its technical secretariat will executed by the provincial Department in charge of the infrastructure 4.1.5 The project executing agencies will be: (i) the roads authority (OdR) for the RN1 civil works; and (ii), the Department of feeder roads (DVDA). 4.1.6 A qualified consultant will be recruited to carry out the control and supervision of the civil works. It will ensure, under the supervision of the IP, the technical quality control and monitoring of the works, the certification of payment certificates and will establish monthly progress reports. Two counterparts, including a civil engineer from the Road Authority and a rural engineer from the DVDA will work directly and full-time with the consultant in order to benefit from the transfer of knowledge and hands-on training.

Procurement Arrangements

4.1.7 Procurement under International competitive bidding method, as well as the selection of the services of Consultants for the project will be made in accordance with the Bank’s Rules of Procedure for the Procurement of Goods and Works, or as required, the Bank’s Rules and Procedures for the Use of Consultants (May 2008 Editions, revised in July 2012), using the Bank’s appropriate standard bidding documents, as well as the provisions indicated in the financing agreement. With reference to the letter of agreement signed on September 27, 2014 between the Congolese Government and the Bank, procurement relating to National competitive bidding and Consultation of the suppliers will be such as mentioned in annex III of the Protocol of Agreement.

4.1.8 A procurement plan (PPM) which be developed by the infrastructure unit (IP) and be subjected to the Bank’s no-objection, will constitute the basis of procurement methods in the framework of the project. This Procurement plan will be available in its original version in the database to the external Bank website. It will cover a period of 18 months and will be updated each year and as needed, but always on the next 18 months, during the period of project implementation.

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Disbursement 4.1.9. Disbursements under the Grant will be in accordance with Bank rules and procedures. A disbursement letter defining all disbursement guidelines will be reviewed and accepted by both parties during the grant negotiation. Two disbursement methods will be used:

(i) The direct payment method will be used for the payment of consultancy services, works and goods. This method will be used to pay suppliers and consultants, based on contracts signed between them and the Government. These disbursements will be in accordance with the project expenditure schedule as well as the list of goods and services and Bank rules and procedures.

(ii) Concerning the management of the operating budget of the Project Executing Agency, the Government will open a special account in a commercial bank acceptable to the Bank, to receive operating resources as part of the financing. The special account or revolving fund method will be used for the payment of compensation to project affected persons as well as minor recurrent operating expenses.

Financial Management and Auditing 4.1.10 The Infrastructure Unit of the Ministry of Infrastructure, Public Works and Reconstruction will be responsible for the administrative, financial and accounting management of the project. At present, the IU is implementing two projects financed by the African Development Bank in the transport sector and other projects financed by other TFPs in the road sector. Its financial staff, who are under the supervision of the Administrative and Finance Section Head, have been working for several years and are familiar with Bank financial management procedures. The financial management team participated actively in the capacity building activities carried out by the Bank within the framework of the fiduciary clinics organized in DRC. It comprises an Administrative and Finance Section Head who oversees administrative, financial and accounting tasks, a Chief Accountant, three Accountants, a Treasurer, a Finance Controller, a Fixed Assets Officer, an Administrative and Human Resources Manager and a General Affairs Officer. An Administrative and Financial Assistant recruited on a competitive basis is responsible for the financial management of the projects financed by the Bank. The staff’s financial management capacity is considered to be acceptable. 4.1.11 The IU will carry out all the verification and controls deemed necessary to: (i) ensure that grant resources are used solely for their intended purpose; (ii) ensure that periodic financial reports containing exact and reliable information are prepared on a regular and timely basis; and (iii) safeguard project assets, including those held by third parties. It will produce, on a quarterly basis, financial monitoring reports (FMR) analyzing Bank-funded activities, monitor activities by component and by expenditure category and consolidate the accounting data of the three financing agreements concluded with the Bank.

Audit Arrangements 4.1.12 the contract of the external auditor for the two projects financed by the Bank is ongoing, and covers fiscal years 2014, 2015 and 2016. During his contract, the scope of the the auditor consultancywill cover the Tshikapa-Kamuesha project activities. The cost of auditing will be based on a prorata basis. Subsequently, the a new external audit firm whose terms of reference will be approved by the Bankwill be recruited to cover the fiscal years of 2017, 2018 and 2019. Accounts Audit Reports and internal control (management letter) shall be transmitted by the IP to the Bank and other cofinanciers in the six months following the end of each fiscal year. The audit report for the first period should include a specific opinion on the costs incurred by the forced relocation.

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Implementation and Supervision Schedule 4.1.13 The project will be implemented from January 2015 to December 2019, corresponding to a period of 60 months. During its implementation, the Bank will undertake joint supervision missions with Government departments in DRC (IU, OdR, DVDA, FONER, etc.). A mid-term review mission undertaken by the Bank will assess implementation to ascertain progress towards the project objectives. The table below indicates the key dates of the provisional project supervision programme.

Table 4.1: Provisional Supervision Programme Period Activity Team Composition 2/2015 Launching mission Project Officer (1 Transport Engineer; 1 Transport Economist; 1 Disbursement Officer; 1 Procurement Officer; 1 Finance officer + CDFO 11/2015 – 6 and 11/2016 Supervision Project Officer + 1 Socio-economist, 1 Environmentalist + CDFO 6/2017 Mid-term review Project Officer/ Socio-economist; Environmentalist; Financial Management Officer; CDFO 11/2017 – 6/2018 Supervision Project Officer + CDFO 3/2019 Completion report Project Officer + 1 Socio-economist + CDFO

4.2 Monitoring and Evaluation 4.2.1 The implementation of the various components of this project will be monitored by the Infrastructure Unit (DGR). External supervision missions (donors and Government) will also help to report on project performance in terms of physical and financial achievements. Regarding the assessment of the level of achievement of its development objectives, a socio-economic impact monitoring and evaluation mechanism will be established with the support of the National Institute of Statistics (NIS). A direct agreement contract will be concluded with NIS which is executing, to the satisfaction of the Bank and the Government, similar work for the Loange Bridge-Lovua Bridge. A video report will also be prepared as part of monitoring and evaluation, to document, on a visual basis, project achievements and impacts on beneficiaries. 4.3 Governance 4.3.1 Governance indicators reveal that DRC still falls below the sub-Saharan African average. The country is ranked in the 5th and 10th percentile respectively for the “control of corruption” and “voice and accountability” dimensions, in the World Bank’s 2011 classification. Devolution mechanisms should be specified to make effective the Government’s strategy on decentralization and transfer of powers and financial resources, mainly to the provinces. With a Corruption Perceptions Index of 21 over 100, DRC is ranked 160th out of 176 countries in Transparency International’s 2012 Report and the Government’s sometimes vigorous efforts to reverse this situation have still not yielded the expected results. 4.3.2 A public finance management reform initiated in 2008 led to: (i) the adoption of a Public Finance Reform Strategic Plan and an organic law on public finance (LOFIP) introducing results-based budgeting; and (ii) the establishment of a Steering Committee for Public Finance Reform (COREF). The Bank’s assessment of the country’s public finance management and fiduciary risk systems in 2012 revealed a number of recurrent weaknesses that hamper fiscal management efficiency: (i) repeated use of exceptional expenditure procedures; (ii) virtual non-existence of the accounting function; (iii) weak internal and external audits; (iv) inefficient internal resource mobilization system, etc. Although the country is aware of the Construction Sector Transparency Initiative (CoST), launched under the auspices of DFID and the World Bank, its accession to the initiative is not yet effective. 4.3.3 The risk of poor governance of this project mainly concerns procurement and contract execution. This risk will be mitigated by: (i) the recruitment of a Procurement Expert in the Project Management Unit; (ii) the organization of information sessions and provision of technical assistance to PIUs to allow for better ownership of Bank rules and procedures which results in better quality at entry 15

of procurement and financial management aspects; (iii) the existence of an administrative, financial and accounting procedures manual; (iv) the control by the Bank of various stages of the procurement process through the issuance of its “no-objection” opinions; and (v) project supervision and financial audits. Furthermore, CDFO will provide the Executing Agency with on-site procurement, contract management and financial management support. 4.4 Sustainability 4.4.1 The project is based on the final design studies carried out in 2010 with Bank financing, most data of which was updated in 2014 during preparation and appraisal missions. The pavement structure will be further verified by the Contractor as part of the working design. Concerning the related agricultural and rural infrastructure, it should be noted that procurement for the conduct of the working design for the rural roads selected is fairly advanced and that this design as well as its environmental and social assessment should be ready before the effective start-up of the project. Regarding other community infrastructure (markets, warehouses, latrines, water supply systems, water resources development, etc.), the prototypes of the physical implementation of these projects are already available within the framework of the Rural and Agricultural Sector Rehabilitation Project (PRESAR) and approved by the Administration. Improvements were recorded on the various interventions of the RDAs from 2012 to 2013. We note that : (i) the km of roads n good and fair conditions on the Ring National (priority network) has increased from 16.132 Km to 16.947 Km, i.e an annual improvement rate of 5%; (ii) mechanized maintenance was performed on 2050 Km to 2.175 Km of roads, i.e. an annual improvement rate of 6%.

4.4.2 Pursuant to Law No. 08/006-A of 7 July 2008 and Decree No. 08/27 of 24 December 2008, a National Road Maintenance Fund (FONER) with virtually all the characteristics of a second-generation fund was set up to maintain the road and rural roads after their commissioning. FONER resources are derived mainly from: (i) royalties levied on lubricants and fuel (96%); (ii) toll-gate fees (3%); and (iii) overload fines (1% of the cargo amount). According to the formula for allocation of FONER’s revenue, 60% of the revenue is earmarked for the maintenance of the urban roads and general utility network and placed at the disposal of OdR and OVD. The 40% for the maintenance of provincial and rural roads and placed at the disposal of provinces. The Fund’s resources increase on average by 10% yearly. In 2012, the Fund collected close to USD 85.83 million against projections of around USD 77.52 million, representing an achievement rate of 110.71%. At end-July 2014, revenue stood at USD 70 million against USD 102 million in 2013. In addition, roads of particular national significance, which are rehabilitated with external financing, are among the top priorities of the Fund. 4.4.3 A number of initiatives have been taken to improve the Fund’s efficiency: (i) implementation of a media plan to disseminate the new Operations Manual under the Pro-routes programme targeting road agencies; (ii) reform to change from the Fund’s triple supervisory oversight (MIN FIN, MATUHITPR, MTVC) to that by just two body , namely the MIN FIN and MATUHITPR ; (iii) establishment of provincial road boards in each province; (iv) building capacity to design road maintenance programmes; and (v) faster justification of expenditure by road agencies. To optimize resource absorption by road agencies, FONER proposes that contracts signed with SMEs for routine maintenance should be combined with contracts signed under State supervision (road agencies) for periodic maintenance. On the other hand, a CLER whose capacity would be validated by a partner may henceforth benefit from support provided by DVDA/FONER through a negotiated contract. In addition, the CLERs to be involved in infrastructure works will be equipped and trained under the project and subsequently supported by DVDA with financial assistance from FONER. Furthermore, it should be noted that the rural roads to be rehabilitated by the project will be included in DVDA’s Priority Road Maintenance Programme. User associations will be responsible for the management and maintenance of markets and boreholes and the funds collected will be distributed between the local communities and these associations, as is the current practice. 16

4.5 Risk Management The direct risks for the project mainly relate to an increase in the cost of works and failure to maintain the road and rural roads. The risk related to the increase in costs is mitigated by the fact that: (i) project costs are based on those of similar projects executed recently in DRC; (ii) engineering studies have been finalized and updated; (iii) there is a specific provision based on the price escalation rate applied with regard to exchange rate fluctuations and increases in the prices of some inputs; and (iv) the selection of contractors and control firms will be based on international competitive bidding. The risk associated with the lack of road and rural road upkeep and maintenance is mitigated by the programming by the Roads Authority, in conjunction with the National Road Maintenance Fund (FONER) and DVDA, of the maintenance of the national utility road network of which NR1 is the top priority, as well as the commitment of DVDA to include rehabilitated rural roads in the priority road network. 4.6 Knowledge Building Lessons learned from project implementation as a whole and from innovative experiences in the establishment of CLERS will be leveraged through the planned monitoring and evaluation mechanism. By analyzing key impact indicators before project start (baseline situation) and assessing the post- completion impact, useful information will be generated on the project outcomes and outputs. This knowledge will be managed from a functional database by the monitoring and evaluation services of the IU, OdR and DVDA, and will be disseminated in annual reports and on the Bank’s OITC Department’s website. The establishment and functionality of CLERs will enable the population in the PA to maintain rural feeder roads. V. LEGAL FRAMEWORK 5.1 Legal Instrument The project legal instrument is a UA 74 million Grant signed in the Democratic Republic of Congo.

5.2 Conditions Associated with Bank Involvement 5.2.1 Conditions Precedent to Grant Effectiveness: the Grant Agreement shall enter into force upon its signature. 5.2.2 Conditions Precedent to First Disbursement of Grant: the first disbursement of the grant shall be subject to the entry into force of the Grant Agreement and the opening of a special account in a bank acceptable to the Bank, to receive grant resources. 5.2.3 Other Grant Conditions: provide, prior to the start of construction work, evidence of the payment of compensation to parties affected by the works, in accordance with the relevant Fund policies and guidelines, the Environmental and Social Management Plan (ESMP) and the Comprehensive Resettlement Plan (CRP). 5.2.4 Commitments: the Government of DRC gives an undertaking to fulfil the following, to the satisfaction of the Fund: (i) not start construction work on a road section without ensuring that the persons affected in this area are fully compensated; (ii) implement the Project, the ESMP and the RAP and have its contractors implement same in accordance with national law, the recommendations, prescriptions and procedures contained in the ESMP and RAP as well as the relevant Fund rules and procedures; (iii) submit to the Fund quarterly reports on ESMP implementation, including, where applicable, weaknesses and corrective actions undertaken or planned; (iv) to provide to the Fund, no later than December 31, 2016, proof of evidence of effective 17

implementation of the axle load control regulations on the RN1.furnish the Fund, no later than 31 December 2017, with evidence of effectively instituting axle load control with the application of penalties for overloading and requiring the offloading of trucks violating the law. 5.3 Compliance with Bank Policies The project complies with all applicable Bank policies.

VI. RECOMMENDATION Management recommends that the Board of Directors approve the proposal to award an ADF Grant not exceeding UA 74.00 million to the Democratic Republic of Congo for the purpose and under the terms and conditions set forth in this report.

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Appendix I: Country’s Comparative Socio-economic Indicators Congo (DRC) Development Indicators Congo (DRC) Developing Social Indicators Africa 2000 2012 Countries Area (000 Km²) 2 344,9 30 046,4 80 976,0 Total Population (Million) 49,6 69,6 1 078,8 5 628,5 Population Growth (Annual %) 2,4 2,6 2,3 1,4 Life Expectancy at Birth -Total (Years) 45,7 48,7 58,1 65,7 Mortality Rate, Infant (per 1 000) 125,2 110,2 70,8 53,1 Physicians (per 100 000 People) .. .. 53,6 77,0 Births Attended by Skilled Health Personnel (%) ...... 39,0 Immunization, Measles (% of Children Aged 12-23 Months) 46,0 .. 76,6 76,0 School Enrolment, Primary (% Gross) .. .. 101,9 106,0 Ratio of Girls to Boys in Primary Education (%) .. .. 88,6 100,0 Lit eracy Rate (% of Population >15 Years) .. .. 67,0 19,0 Access to Safe Water (% of Population) 44,0 .. 65,7 84,0 Access to Sanitation (% of Population) 16,0 .. 39,5 54,6 HDI Value (Rank on 179 Countries) 0,2 0,3 0,5 0,7 Human Poverty Index (HPI-1) (% of Population) 39,7 .. 33,9 ..

Congo (DRC) Macro-economic Indicators 2000 2010 2011 2012 GNI per Capita, Atlas Method (Current USD) 90,0 180,0 190,0 .. GDP (Million Current USD) 4 302,7 13 140,6 15 692,9 18 135,1 Real GDP Growth (Annual %) -6,2 7,2 6,9 7,2 Real GDP Growth per Capita (Annual %) -8,4 4,4 4,1 4,5 Gross Domestic Investment (% of GDP) 3,5 23,5 20,5 21,0 Inflation (Annual %) 550,0 23,5 15,4 6,4 Budget Balance (% of GDP -6,0 2,4 -0,4 -6,2 Trade, External Debt and Financial Flows 2000 2010 2011 2012 Change in Volume of Exports (%) -6,1 46,9 20,6 9,1 Change in Volume of Imports (%) 32,5 43,3 6,8 -7,1 Change in Terms of Trade -9,0 19,9 -14,1 -8,6 Trade Balance (USD Million) 242,4 654,5 497,3 1 275,0 Trade Balance (% of GDP) 5,6 5,0 3,2 7,0 Current Account Balance (USD Million) -172,7 -1 062,0 -1 812,1 -2 011,8 Current Account Balance (% of GDP) -4,0 -8,1 -11,5 -11,1 Debt Service (% of Exports) 83,6 9,3 9,5 9,3 Total External Debt (% of GDP) 293,0 34,8 30,2 30,9 Total Net Financial Flows (USD Million) 191,8 2 668,4 3 374,1 .. Net Official Development Assistance (USD Million) 177,1 3 543,0 5 521,7 .. Net Direct Investments (USD Million) 72,0 2 939,3 1 686,9 .. International Reserves (Months of Imports) .. 1,5 1,2 1,7 Private Sector Development and Infrastructure 2000 2010 2011 2012 Time Required to Start a Business (Days) .. 84,0 65,0 58,0 Investor Protection Index (0-10) .. 3,3 3,3 3,3 Fixed Telephone Line Subscribers (per 1000 People.) 0,2 0,6 .. .. Mobile Phone Subscribers (per 1000 People.) 0,3 179,2 .. .. Internet Users (000) 0,1 7,4 .. .. Asphalted Roads (% of Total Roads) ...... Railways, Goods Transported (Million ton-km) 0,0 0,0 .. .. Source: AfDB Statistics Department Database, from national and international sources Last update: August 2013

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Appendix II: DRC: Table of AfDB Portfolio in the Country (approved and active projects) as at 31 July 2014 in UA Million

Project Name SAP Code Source of Approval Signature Effective Closing Amount Total % % Status Financing Date Date Date Date Approved Disbursed Disbursed Sect. AGRICULTURAL SECTOR 49.46 4.73 9.6% 7,94% 1 RURAL INFRASTR. DEV. SUPPORT PROJECT P-CD-AB0-001 ADF Grant 10/11/2011 20.01.2012 20.01.2012 31.12.2017 49.46 4.73 9.6% NPP/NPPP TRANSPORT AND ICT SECTOR 211.63 36.46 17.2% 33,96% 2 PRIORITY PROJECT – AIR SAFETY P-CD-DA0-001 ADF Grant 29/9/2010 2.11.2010 2.11.2010 31.12.2015 88.60 29.70 33.5% PPP BATSHAMBA-TSHIKAPA ROAD REHABILITATION 3 P-CD-DA0-002 ADF Grant 13/6/2012 7.8.2012 7.8.2012 31.12.2017 53.55 6.76 12.6% PROJECT NPP/NPPP BATSHAMBA- LOVUA ROAD SECTION 4 P-CD-DA0-008 ADF Grant 10/12/2013 31.12.2019 13.26 0.00 0.0% REHABILITATION PROJECT NPP/NPPP ADF Loan 10/12/2013 31.12.2019 0.66 0.00 0.0% FSF 10/12/2013 31.12.2019 55.56 0.00 0.0% WATER AND SANITATION SECTOR 175.94 51.77 29.4% 28,24% 5 SEMI-URBAN DWSS PROJECT P-CD-EA0-004 ADF Grant 9/6/2007 9.8.2007 4.4.2008 31.12.2014 70.00 51.77 74.0% NPP/NPPP PROJECT FOR THE REHABILITATION OF SOCIO- 6 P-CD-E00-002 ADF Grant 27/11/2013 31.12.2019 43.52 0.00 0.0% ECONOMIC INFRA. IN THE CENTRE ZONE ADF Loan 27/11/2013 31.12.2019 1.47 0.00 0.0% FSF 27/11/2013 31.12.2019 55.00 0.00 0.0% RWSSI 27/11/2013 31.12.2019 5.95 0.00 0.0% PRIVATE SECTOR 39.72 0.59 1.5% 6,37% 7 ADVANS BANQUE (CONGO) P-CD-HA0-001 AfDB Loan 4/2/2008 24.11.2008 9.4.2009 31.5.2013 0.61 0.59 97.5% NPP/NPPP 8 NYUMBA CEMENT PLANT PROJECT AfDB Loan 12/2/2014 39.11 0.00 0.0% NPP/NPPP ENERGY SECTOR 105.39 24.06 22.8% 16,91% 9 INGA-PMEDE HYDROELECTRIC REHAB PROJECT P-CD-FA0-001 ADF Grant 18/12/2007 10.04.2008 10.4.2008 31.12.2014 35.70 15.98 44.75% PPP 10 PERI-URBAN/RURAL ELECTRIFICATION PROJECT P-CD-FA0-003 FSF 15/12/2010 10.03.2011 10.3.2011 31.12.2015 60.00 7.18 11.97% NPP/NPPP PERI-URBAN/RURAL ELECTRIFICATION PROJECT P-CD-FA0-003 ADF Grant 15/12/2010 10.03.2011 10.3.2011 31.5.2015 9.69 0.90 9.31% NPP/NPPP MULTISECTOR SECTOR 40.96 9.61 23.5% 6,57% 11 PUB. FINANCE MODERNIZ. SUPPORT PROJECT P-CD-KF0-002 ADF Grant 25/4/2010 29.5.2012 29.5.2012 31.12.2015 10.00 1.54 15.36% NPP/NPPP 12 MOBILIZATION HUM. RES. PUBLIC ADMINISTRATION P-CD-KZ0-004 ADF Grant 21/1/2011 4.5.2011 5.5.2011 31.12.2015 20.00 8.07 40.37% NPP/NPPP STATISTICAL AND PUBLIC FINANCE INSTITUTIONAL 13 P-CD-K00-009 ADF Grant 23/10/2013 31.12.2016 10.96 0.27 2.46% SUPPORT NPP/NPPP National Operations 623.10 127.23 20.42% EMERGENCY ASSISTANCE 0.67 0.00 0.0% 0,11% EMERGENCY ASSISTANCE FOR THE DISPLACED 1 P-CD-AA0-005 ERF 20/2/2014 0.67 0.00 0.0% POPULATIONS OF KATANGA FSF WINDOW III 7.13 2.66 37.3% 1 NATIONAL STATISTICS DEV. STRATEGY P-CD-KF0-004 FSF 19/4/2011 24.08.2011 24.8.2011 30.6.2014 0.26 0.15 56.91% NPP/NPPP INSTITUTIONAL CAPACITY-BUILDING FOR MINISTRY 2 P-CD-KF0-005 FSF 11/7/2011 24.08.2011 24.8.2011 30.6.2014 0.28 0.25 89.08% OF EDUCATION NPP/NPPP 3 SUPPORT FOR FSF PROJECTS IMPLEMENTATION FSF 1/3/2011 30.9.2013 0.15 0.12 80.00% NPP/NPPP II

UNIT 4 SUPPORT FOR MACRO-ECONOMIC MANAGEMENT FSF 24/11/2010 30.6.2014 0.59 0.46 77.97% NPP/NPPP 5 INSTITUTIONAL CAPACITY-BUILDING (Public Finance) FSF 26/3/2010 30.6.2014 0.48 0.18 37.50% NPP/NPPP 6 INSTITUTIONAL CAPACITY-BUILDING (Diaspora) FSF 26/3/2010 30.6.2014 0.34 0.26 76.47% NPP/NPPP 7 CREATION OF INGA SITE AGENCY P-CD-FA0-005 FSF 17/4/2013 31.5.2013 31.5.2013 30.6.2015 1.99 0.00 0.00% NPP/NPPP 8 INGA3 -INGA/PATCD DEVELOPMENT PROJECT P-CD-FA0-009 FSF 13/5/2013 31.5.2013 31.5.2013 30.6.2015 1.5 1.06 70.96% NPP/NPPP 9 REFORMS STEERING CAPACITY-BUILDING P-CD-KF0-008 FSF 18/7/2013 31.12.2014 1.54 0.18 11.53% NPP/NPPP CBFF 23.19 10.84 46.8% 1 SANKURU FAIR TRADE CARBON INITIATIVE P-Z1-C00-021 CBFF 7/4/2010 14.2.2011 10.3.2011 1.5.2015 1.12 1.01 90.14% NPP/NPPP 2 CONSERVATION INTERNATIONALE FOUNDATION P-Z1-C00-025 CBFF 9/6/2010 26.7.2001 10.11.2011 28.2.2014 1.20 0.15 12.78% PPP 3 ECOMAKALA P-Z1-C00-026 CBFF 12/7/2011 31.8.2011 31.8.2011 31.3.2014 2.22 0.47 30.82% NPP/NPPP 4 REDD AGROFORESTRY SOUTH KWAMOUTH P-Z1-C00-027 CBFF 12/7/2011 31.8.2011 31.8.2011 31.3.2014 2.22 1.03 46.32% PPP 5 ISANGI PILOT REDD PROJECT P-Z1-C00-028 CBFF 19/5/2011 8.6.2011 17.8.2011 31.3.2014 2.05 1.24 60.54% PPP CIVIL SOCIETY AND GOVERNANCE CAPACITY 6 P-Z1-C00-029 CBFF 13/7/2011 31.8.2011 15.10.2011 31.3.2014 2.85 0.56 19.55% BUILDING NPP/NPPP 7 LUKI REDD PROJECT P-Z1-C00-031 CBFF 22/7/2011 31.8.2011 31.8.2011 31.3.2014 2.08 0.47 22.77% NPP/NPPP 8 MAMBASA REDD PROJECT P-Z1-C00-032 CBFF 27/04/2011 8.6.2011 17.8.2011 31.3.2014 2.64 1.55 58.80% NPP/NPPP 9 INTEGRATED EXPLOITATION OF JAFRO PLANT P-Z1-C00-039 CBFF 6/12/2011 29.2.2012 29.2.2012 31.12.2015 0.11 0.10 94.14% NPP/NPPP 10 VAMPEEN VALORIASATION OF AFRICAN MEDICINE P-Z1-C00-043 CBFF 16/11/2011 9.12.2011 30.12.2011 31.12.2014 1.40 1.04 74.14% NPP/NPPP 11 SUPPORT FOR AGRO-FORESTRY DEVELOPMENT P-Z1-C00-035 CBFF 2/4/2012 12.6.2012 30.8.2012 28.2.2015 5.30 3.22 60.70% NPP/NPPP Forestry Investment Programme (PIF) 15.19 0.40 2.6% 1 Forestry Investment Plan PIF 19/6/2012 6.10.2012 6.10.2012 31.12.2013 0.52 0.40 76.81% NPP/NPPP 2 REDD-KIS Integrated Project P-CD-AAD-003 PIF 11/9/2013 31.7.2018 14.67 0.00 0.00% NPP/NPPP MULTINATIONAL 103.55 22.39 21.6% Study on Bridge between Kinshasa (DRC) and P-Z1-D00-016 1 Brazzaville (Congo) ADF Grant 3/12/2008 13.5.2009 13.5.2009 30.6.2014 3.59 1.73 48.15% PPP Study on Ousso-Bangui-Ndjamena Road and River P-Z1-D00-066 2 Navigation ADF Grant 1/12/2010 29.4.2011 29.4.2011 31.12.2014 0.44 0.06 12.79% NPP/NPPP 3 LAKE TANGANYIKA DEV. PROG. (DRC) P-Z1-AAF-001 ADF Loan 17/11/2004 1.2.2005 24.11.2006 31.12.2014 6.79 5.92 87.22% PPP ADF Grant 17/11/2004 1.2.2005 1.2.2005 31.12.2014 4.96 4.10 82.57% 4 NELSAP INTERCONNECTION PROJECT - DRC P-Z1-FA0-035 ADF Grant 27/11/2008 28.5.2010 28.5.2010 31.12.2014 27.62 1.47 5.32% PPP 5 INGA and Related Interconnections Study P-Z1-FA0-014 ADF Grant 30/4/2008 7.8.2008 7.8.2008 30.6.2014 9.51 8.82 92.78% NPP/NPPP 6 Boali Electricity Power Grid Interconnection P-Z1-FA0-047 ADF Grant 19/9/2012 20.2.2013 20.2.2013 31.12.2017 5.55 0.00 0.00% PPP Inga Site and Electricity Access Development Support P-Z1-FA0-045 7 Project ADF Grant 20/11/2013 31.12.2019 44.40 0.00 0.00% 8 Study on Kinshasa-Ilebo Railway Extension P-Z1-DC0-014 IPPF Grant 15/7/2012 13.2.2012 13.2.2012 30.6.2014 0.69 0.29 42.61% GRAND TOTAL 772.83 163.52 21.16%

III

Appendix III: Major Related Projects Financed by the Bank and Other Development Partners in the Country Financing Total Cost / Donor Group / Main Sub-sector/ 2005 2006 2007 2008 2009 2010 2011 2012 Actual Actual Actual Actual Actual Actual Actual Actual Actual Disbursement Disbursement Disbursement Disbursement Disbursement Disbursement Disbursement Disbursement Disbursement

AfDB - - 11 016 10 051 539 274 050 30 476 323 16 106 049 18 100 779 75 019 756 - Air transport(1) ------15 339 990 2 375 063 17 715 053 - Road transport(1) - - 11 016 10 051 539 274 050 30 476 323 766 060 15 725 717 57 304 704 World Bank 79 646 985 102 459 047 64 670 519 83 895 763 29 872 005 45 443 247 90 685 346 69 020 198 565 693 110 - Transport policy and 3 970 613 4 914 820 849 309 1 639 936 1 466 677 4 168 566 3 209 898 2 538 827 22 758 645 administrative management (4) - Air transport(1) - - 13 800 4 200 000 41 524 186 923 18 864 016 12 316 668 35 622 931 - Rail transport(3) 4 890 772 4 960 330 711 179 5 485 896 41 524 186 923 18 864 016 12 316 668 47 457 307 - Water transport(4) 13 783 586 9 350 708 6 192 774 7 618 627 41 524 186 923 18 864 016 12 316 668 68 354 825 - Road transport(11) 57 002 014 83 233 189 56 903 459 64 951 305 28 280 757 40 713 911 30 883 401 29 531 367 391 499 403 Belgium 10 899 744 11 191 642 11 727 793 23 778 228 12 305 756 15 953 912 12 629 744 13 241 295 111 728 112 - Transport policy and - 37 746 6 013 - 47 901 60 222 1 205 - 153 087 administrative management (3) - Storage (1) - - 535 678 - - - - - 535 678 - Air transport(1) ------805 418 805 418 - Rail transport(2) - - - - 303 124 2 611 525 6 182 631 213 043 9 310 322 - Water transport(7) 623 475 754 919 1 957 499 1 574 685 38 446 3 711 134 64 282 663 779 9 388 219 - Road transport(19) 10 276 269 10 398 976 9 228 603 22 203 543 11 916 286 9 571 031 6 381 626 11 559 054 91 535 388 Chine - - - - 14 858 580 151 430 - 32 800 000 47 810 011 - Transport policy and - - - - - 151 430 - - 151 430 administrative management (1) - Air transport (2) - - - - 14 858 580 - - 32 800 000 47 658 580 United Kingdom 14 571 846 14 862 405 7 995 903 13 164 610 6 563 269 36 204 367 22 821 205 14 711 185 130 894 792 - Road transport (11) 14 571 846 14 862 405 7 995 903 13 164 610 6 563 269 36 204 367 22 821 205 14 711 185 130 894 792 European Union 18 359 372 10 762 220 17 013 829 38 413 931 26 537 067 40 214 472 17 128 700 32 075 894 200 505 486 - Water transport (1) ------566 210 3 563 884 4 130 094 - Road transport (11) 18 359 372 10 762 220 11 325 060 12 189 641 26 537 067 40 214 472 16 562 490 28 512 010 164 462 332 Main Undistributed Sub-sector (1) - - 5 688 770 26 224 290 - - - - 31 913 060 TOTAL (81) 123 477 947 139 275 314 101 419 060 169 304 071 90 410 728 168 443 752 159 371 044 179 949 351 1 131 651 267

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Appendix IV: Map of Project Area

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Appendix V: Map showing Progressive Development of NR1-Tshikapa-Mbuji Mayi Road

VI

ANNEXES: DATA IN SUPPORT OF KEY ARGUMENTS OF REPORT

ANNEX No. 1: Detailed Project Cost

PROJECT COMPONENTS USD Million UA Million CDF Million

A. INFRASTRUCTURE 93.65 61.16 87 691.37

1. Development of 87 kilometres of NR1, including provision of space for laying the optic fibre, rest areas and environmental protection measures – 78.50 51.27 73 510.87 Tshikapa-Kamuesha Section 2. Road works control and supervision 2.75 1.79 2 572.88 3. Sensitization on road safety, HIV/AIDS, environment, early pregnancy, 0.18 0.12 168.55 Ebola, etc. 4. Rehabilitation of basic infrastructure (rural roads, ferry docks, rural markets, warehouses, latrines, water supply systems, water sources, 9.11 5.95 8 530.53 boreholes, etc.) 5. Rehabilitation of buildings (administrative buildings, technical institutes of agriculture, premises of NGDO/social reintegration and vocational training 1.20 0.78 1 123.67 centres) 6. Equipping of buildings: scales (markets), solar panels and generators 0.30 0.20 280.92 (markets, institutes, social reintegration centres, administrative buildings) 7. Specific measures for women (multipurpose platforms, Tshikapa 1.19 0.78 1 117.12 multipurpose centres, supply of Micro-Cossette graters, etc.) 8. Related rural infrastructure works control, supervision and studies 0.41 0.27 386.83 B. CAPACITY BUILDING AND STUDIES 2.60 1.70 2 431.25 1. Support to the National Road Safety Commission (CNPR) 0.30 0.20 280.92 2. Support for the establishment and functioning of the Kasai Provincial Road 0.20 0.13 187.28 Commission (CPR) 3. Support to the provincial services of MINDR, MINAGR, SPSA, 0.47 0.31 437.76 Environment, the Ministry of Gender and the Ministry of Social Affairs 4. Support to social reintegration centres and technical institutes of agriculture 0.47 0.30 435.42 5. Sensitization, training and organization of beneficiaries (MINADR, MINENV, MINGENRE, MINAS and NGDO), training and equipping 0.44 0.28 407.80 community infrastructure management committees 6. Agricultural advisory services 0.04 0.03 35.96 7. Various studies (agricultural infrastructure and feasibility study of the 219 kilometre-long Tshikapa-Mungamba- Kamako and Mungamba-Kandjaji 0.69 0.45 646.11 road towards Angola) C. PROJECT MANAGEMENT AND MONITORING 2.18 1.42 2 042.36 1. Project financial and accounting audit 0.18 0.11 163.87 2. Project technical audit 0.10 0.07 93.64 3. Monitoring and evaluation of project socio-economic impacts 0.40 0.26 374.56 4. Functioning of the Executing Agency 0.98 0.64 919.78 5. Compensation of project affected persons and functioning of the 0.52 0.34 490.51 Resettlement Committee BASE COST 98.43 64.28 92 164.97 Physical Contingencies (9.5%) 9.35 6.10 8 752.28 Price Escalation (5.76%) 5.54 3.62 5 191.85 TOTAL COST 113.32 74.00 106 109.10

VII

DEMOCRATIC REPUBLIC OF CONGO PROJECT TO DEVELOP NR1 (TSHIKAPA – MBUJI MAYI) AND REHABILITATE RELATED RURAL INFRASTRUCTURE INFRASTRUCTURE REHABILITATION COMPONENT

Item Quantities UP Cost in USD Thou Cost in Unit A1 A2 A3 A4 A5 TotalUSD ThouA1 A2 A3 A A5 Total UA Thou A-Investments 4 I-Rehabilitation Works 1-Rural infrastructure Rehabilitation Works Rehabilitation of Rural Roads Km 0 150 150 68 0 368 13 0 1950 1950 884 0 4 784 3 124 Rehab. of two Culverts on the Kamuesha-Katshimu-KabelekesseU-Mungombe 0 -Thisanda0 2- Bilenge0 -0Kabodi/Kassala 2 15 0 Road 0 30 0 0 30 20 Rehab. of four Bridges on the Kamuesha-Katshimu-Kabelekesse-UMungombe 0 -Thisanda0 2- Bilenge2 -0Kabodi/Kassala 4 160 0 Road 0 320 320 0 640 418 Rehab. of four Bridges on the Kassaï Bridge-Kalonda-TshindembaU -Riv. Lubilu0 -Trente0 2 deux 2 (Ndjoko0 4 Mpunda) 145 0Road 0 290 290 0 580 379 Rehabilitation of Rural Markets Number 0 5 5 0 0 10 160 0 800 800 0 0 1 600 1 045 Rehabilitation of Warehouses and Latrines Number 0 2 1 0 0 3 50 0 100 50 0 0 150 98 Development of Water Number 0 30 50 20 0 100 5 0 150 250 100 0 500 327 SourcesRehabilitation of Drinking Water Supply Systems Number 0 0 3 2 0 5 60 0 0 180 120 0 300 196 Rehabili tation of Boreholes Number 0 0 10 5 0 15 30 0 0 300 150 0 450 294 Construction of Ferry Docks Number 0 0 3 0 0 3 50 0 0 150 0 0 150 98

Total Rehabilitation Works 0 3 0004 3201 864 0 9 184 5 997

II-Goods b-Motor Pumps and Other Equipment Procurement of Various Market Equipment (weighing machines, Lumpetc.) sum 0 5 5 0 0 10 3 0 15 15 0 0 30 20 Procurement of Solar Panels and Generators (institutes, centres, marketsNumber, etc.0 ) 10 7 0 0 17 15 0 150 105 0 0 255 167 Procurement of Large Generators in Administrative Number 0 0 3 0 0 3 10 0 0 30 0 0 30 20 Buildings Total Goods 0 165 150 0 0 315 206

III-Services Working Design of Administrative Buildings Lump sum0,5 0,5 0 0 0 1 40 20 20 0 0 0 40 26 Various Complementary Engineering Studies Lump sum 0 0,5 0,5 0 0 1 50 0 25 25 0 0 50 33 Total Services 20 45 25 0 0 90 59 I. Total Investment Cost 20 3 2104 4951 864 0 9 589 6 262

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DEMOCRATIC REPUBLIC OF CONGO PROJECT TO DEVELOP NR1 AND REHABILITATE RELATED RURAL INFRASTRUCTURE INSTITUTIONAL CAPACITY BUILDING COMPONENT Description Quantities U.P. Cost in USD Thou Cost in Unit A1 A2 A3 A4 A5 TotalUSD ThouA1 A2 A3 A4 A5 Total UA Thou A-Investments I- Rehabilitation Works 1-Rehabilitation of Project Partners’ Buildings Rehabilitation of the Administrative Buildings of Relevant Services at TshikapaNumber (Reg.0 Agri,0 Gen1 der0 & Envi0 . 1 200 0 0 200 0 0 200 131 ServiceRehabilitation) of the Administrative Buildings of Relevant Services at KamoniaNumber (Reg0 , Agri,0 Gender1 0 & Envi.0 1 130 0 0 130 0 0 130 85 ServiceRehabilitation) of the Administrative Buildings of EPSP at Number 0 1 0 0 0 1 100 0 100 0 0 0 100 65 DibumbaRehabilitation of the Buildings of Kamuesha Technical Institute of Number 0 1 0 0 0 1 100 0 100 0 0 0 100 65 AgricultureRehabilitation of the Buildings of Kananga2 Technical Institute of Number 0 1 0 0 0 1 150 0 150 0 0 0 150 98 AgricultureRehabilitation of Reintegration Centres and NGDO* Association Bon samaritain de Kamuesha Number 0 0 1 0 0 1 100 0 0 100 0 0 100 65 (BSK)* Association femmes pour la promotion du monde rural (FEPROR) Number 0 0 1 0 0 1 85 0 0 85 0 0 85 56 * Association pour la défense des droits des enfants, femmes et opprimésNumber 0 0 1 0 0 1 90 0 0 90 0 0 90 59 (ADEDEFO)* Centre d'appui au développement de la femme en action (CADEFA) Number 0 0 1 0 0 1 90 0 0 90 0 0 90 59 * Centre d'entraide médicale pour les enfants abandonnés Number 0 0 1 0 0 1 97 0 0 97 0 0 97 63 (CEMEA) Total Rehabilitation of Partners’ Buildings 0 350 792 0 0 1142 746 2-Specific Actions for Women Multipurpose Number 0 5 10 5 0 20 6 0 30 60 30 0 120 78 CentresCompletion of Tshikapa Multipurpose Centre Numbe 0 0 1 0 0 1 103 0 0 103 0 0 103 67 Multipurpose Centres (Kamuesha and Kakumba) rNumbe 0 1 1 0 0 2 450 0 450 450 0 0 900 588 r Total Specific Actions for 0 480 613 30 0 1123 733 Women Total Rehabilitation 0 830 1405 30 0 2265 1479 Works II-Goods 1 Tshikapa Rural Development Inspectorate 1.1 Office Equipment Office furniture (10) Office 0 0 10 0 0 10 2 0 0 20 0 0 20 13 Other office equipment (air conditioners, etc.) (10) Numbe 0 0 10 0 0 10 1 0 0 10 0 0 10 7 1.2 Vehicle and means of transport r Pick-up truck (1) Numbe 0 1 0 0 0 1 40 0 40 0 0 0 40 26 Motorcycles (2 DVDA, SNHR, rNumbe 0 4 0 0 0 4 4 0 16 0 0 0 16 10 1.3SENAHRU) Computer Hardware r Computers and printers (10) Lo 0 0 10 0 10 2 0 0 20 0 0 20 13 High volume A4 scanner (1) tNumbe 0 0 1 0 0 1 0,7 0 0 0,7 0 0 0,7 0 High volume photocopier (1) rNumbe 0 0 1 0 0 1 6 0 0 6 0 0 6 4 1.4 Various Didactic Materials (1) rLump 0 0 1 0 0 1 5 0 0 5 0 0 5 3 sum

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1.5 Specific MaterialsWater analysis kit/reagents and geophysical instrument - SNHR Lump sum0 0 1 0 0 1 15 0 0 15 0 0 15 10 Small tools and demonstration equipment - Lot 0 0 1 0 0 1 15 0 0 15 0 0 15 10 associationsOther equipment Lump sum0 1 0 0 0 1 15 0 15 0 0 0 15 10 2 Tshikapa Inspectorate of Agriculture, Fishery and Stockbreeding 2.1 Office EquipmentOffice furniture Number 0 10 0 0 0 10 2 0 20 0 0 0 20 13 (10)Othe r office equipment (air conditioners)-(10 ) Number 0 10 0 0 0 10 1 0 10 0 0 0 10 7 Item Quantities U.P. Cost in USD Thou Cost in Unit A1 A2 A3 A4 A5 Tota USD ThouA1 A2 A3 A4 A5 Tota UA Thou l l 2.2 Vehicles/means of transp.Pick- up truck (1) Number 0 1 0 0 0 1 40 0 40 0 0 0 40 26 Motorcycles (market, price and production Number 0 2 0 0 0 2 4 0 8 0 0 0 8 5 2.3services Computer) HardwareComputer s and printers Lot 0 10 0 0 0 10 2 0 20 0 0 0 20 13 (High10) volume A4 scanner (1) Number 0 1 0 0 0 1 0,7 0 0,7 0 0 0 1 0 High volume photocopier (1) Number 0 1 0 0 0 1 6 0 6 0 0 0 6 4 3. Tshikapa Agricultural Statistics Service 3.1 Office EquipmentOffice furniture (2) Number 0 0 2 0 0 2 2 0 0 4 0 0 4 3 Other office equipment (air conditioners)-(2) Number 0 0 2 0 0 2 1 0 0 2 0 0 2 1 3.2 Computer Hardware Computers and printers (2) Lot 0 0 2 0 0 2 2 0 0 4 0 0 4 3 High volume A4 scanner (1) Number 0 0 1 0 0 1 0,7 0 0 1 0 0 1 0 High volume photocopier (1) Number 0 0 1 0 0 1 6 0 0 6 0 0 6 4 Various software (SPSS, ArcView, cartography, etc.)-(1) Lump sum0 0 1 0 0 1 15 0 0 15 0 0 15 10 Various small tools and equipment Lump sum0 0 1 0 0 1 10 0 0 10 0 0 10 7 3.3 Veh./means of 0 0 0 0 0 0 0 0 0 0 0 0 transp.Motorcycles (2) Number 0 0 2 0 0 2 4 0 0 8 0 0 8 5 4 Inspectorate of Environment and Nature Conservation 4.1 Office Equipment Office furniture (2) Office 0 0 2 0 0 2 2 0 0 4 0 0 4 3 Other office equipment (air conditioners)-(2) Number 0 0 2 0 0 2 0,8 0 0 1,6 0 0 1,6 1 4.2 Veh./means of trans Motorcycle (1) Number 0 0 1 0 0 1 4 0 0 4 0 0 4 3 4.3 Computer Hardware Computers and printers (2) Lo t 0 0 2 0 0 2 2 0 0 4 0 0 4 3 High volume photocopier (1) Number 0 0 1 0 0 1 6 0 0 6 0 0 6 4 4.4 Various Specific Materials Didactic materials and documents (1) Lot 0 0 0 1 0 1 5 0 0 0 5 0 5 3

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5 Inspectorates of the Ministries of Gender and of Social Affairs 5.1 Office Equipment Office furniture (4) Office 0 0 4 0 0 4 2 0 0 8 0 0 8 5 Other office equipment (air conditioners)-(4) Number 0 0 4 0 0 4 0,8 0 0 3,2 0 0 3,2 2 5.2 Veh./means of transp.Motorcycle (1 per ministry)-(2) Number 0 0 2 0 0 2 4 0 0 8 0 0 8 5 5.3 Computer Hardware Computers and printers (4) lot 0 0 4 0 0 4 2 0 0 8 0 0 8 5 High volume photocopier (2) Number 0 0 2 0 0 2 6 0 0 12 0 0 12 8 5.4 Various Specific Materials Various demonstration materials for networks of women’s associationsLump (2) sum 0 0 0 2 0 2 15 0 0 0 30 0 30 20 Didactic materials and documents (1) Lot 0 0 0 1 0 1 5 0 0 0 5 0 5 3

Item Quantities U.P Cost in USD Thou Cost in Unit A1 A2 A3 A4 A5 TotalUSD ThouA1 A2 A3 A4 A5 Total UA Thou 6. Support to NGDO and Social Reintegration Centres6.1 Bon samaritain de Kamuesha (BSK) Specific equipment for vocational practice and other equipment Lot 0 0 1 0 0 1 45 0 0 45 0 0 45 29 6.2 Femmes pour la promotion du Monde Rural (FEPROR) Specific equipment for vocational practice and other equipment Lot 0 0 1 0 0 1 80 0 0 80 0 0 80 52 6.3 Association pour la Défense des droits des enfants, femmes et opprimés (ADEDEFO) Specific equipment for vocational practice and other equipment Lot 0 0 1 0 0 1 60 0 0 60 0 0 60 39 1.6.4 Centre d'Appui au Développement des femmes en Action (CADEFA)Equipment Lot 0 0 1 0 0 1 40 0 0 40 0 0 40 26 1.6.5 Centre d'entraide Médicale pour les Enfants Abandonnées (CEMEA) Specific equipment for vocational practice and other equipment Lot 0 0 1 0 0 1 60 0 0 60 0 0 60 39 1.7 Support to Technical Institutes of Agriculture 1.7.1 Kamuesha Technical Institute of Agriculture Specific equipment for vocational practice and other equipment lot 0 1 0 0 0 1 50 0 50 0 0 0 50 33 1.7.2 Kananga 2 Technical Institute of Agriculture Specific equipment for vocational practice and other equipment lot 0 1 0 0 0 1 70 0 70 0 0 0 70 46 1.8 Specific Actions for Women Micro-cosette cassava graters + presses Lot 0 0 5 5 0 10 7 0 0 35 35 0 70 46 Total Goods 0 296 520 75 0 891 582

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III-Services 2.1 Sensitization, Training and Organization of Beneficiaries 2.1.1 MINDER, MINAGRI, MINENV, MINGENRE, MINAS, ONGD2.1.1.1 Project planning, management and monitoring and evaluation Person.(20 beneficiaries) 0 0 20 0 0 20 0,20 0 0 4 0 0 4 3 2.1.1.2 Adapting new agricultural produce processing technologies toPerson. diversify 0sources 0 of20 income 0 (200 beneficiaries) 20 0,20 0 0 4 0 0 4 3 2.1.1.3 Promotion of income-generating activities (agric. and non-agricPerson..) and ba0ckyard 0 flock20 (200 beneficiaries0 20 ) 0,20 0 4 0 0 4 3 2.1.1.4 Management of water points and repair of pumps (20 beneficiariesPerson.) 0 0 20 0 0 20 0,20 0 0 4 0 0 4 3 2.1.1.5 Management, monitoring and control of construction sites andPerson. equipment 0 maintenance0 20 (200 beneficiaries0 20 )0,20 0 0 4 0 0 4 3 2.1.1.6 Programming and management of road maintenance works (20Person. beneficiaries 0 ) 0 20 0 0 20 0,20 0 0 4 0 0 4 3 2.1.1.7 Development of the mastery of structures and local expertise (20Person. beneficiaries 0 0) 20 0 0 20 0,20 0 0 4 0 0 4 3 2.1.1.8 Computer training (20 beneficiaries) Person. 0 0 20 0 0 20 0,20 0 0 4 0 0 4 3 2.1.1.9 Rural statistical data collection and exploitation (20 beneficiariesPerson.) 0 0 20 0 0 20 0,20 0 0 4 0 0 4 3 2.1.1.10 Agricultural advisory services, gender, organization and supervisionPerson. of0 farmers 0 ’ associations20 0 0 (20 20beneficiaries 0,20 )0 0 4 0 0 4 3 2.1.1.11 Hygiene and sanitation (20 beneficiaries) Person. 0 0 20 0 0 20 0,20 0 0 4 0 0 4 3 2.1.2 Training of Groups, Associations and NGDO2.1.2.1 Gender equality and promotion of women’s rights, HIV/AIDSPers/month-Ebola, AGR,0 nutrition,5 5 environmental5 5 20 4 0 20 20 20 20 80 52 protection, waterborne diseases, agricultural product conservation and marketing (1000 women) 2.1.2.2 Management of small agricultural produce processing units (100Pers/month associations)0 5 5 5 5 20 4 0 20 20 20 20 80 52 2.1.2.3 Structuring of farmers’ organizations, trades apprenticeship and Pers/month development0 5of AGRs5 (1005 associations)5 20 4 0 20 20 20 20 80 52 2.1.2.4 Organization of agro-multipliers and promotion of improved seedPers/month use 0 1 1 1 1 4 5 0 5 5 5 5 20 13 2.1.2.5 Training of farmers’ organizations in backyard flock management Pers/month (100 associations)0 1 1 1 1 4 5 0 5 5 5 5 20 13 2.1.2.6 Structural and organizational capacity building of traders and Pers/monthcollectors 0 committees 0,5 0,5 (50 0,5 committees) 0,5 2 5 0 2,5 2,5 2,5 2,5 10 7 2.1.2.7 Construction SMEs (20 SMEs) Pers/month0 0,5 0,5 0,5 0,5 2 5 0 2,5 2,5 2,5 2,5 10 7 2.1.2.8 Sensitization and training of carriers (200 beneficiaries) Pers/month0 0,5 0,5 0,5 0,5 2 5 0 2,5 2,5 2,5 2,5 10 7 2.1.2.9 Training of well systems and processing equipment craftsmen Pers/month and repairers0 (500 beneficiaries)0,5 0,5 0,5 1,5 5 0 0 2,5 2,5 2,5 7,5 5

2.1.3 Training and Equipping of Community Infrastructure Management Committees 2.1.3.1 Sensitization of beneficiaries on agricultural and rural infrastructure Pers/month maintenance0 0 and0,5 management1 0,5 2 5 0 0 3 5 3 10 7 2.1.3.2 Training of foremen and team leaders Pers/month0 0 1 2 1 4 5 0 0 5 10 5 20 13 2.1.3.3 Training of local road maintenance committees (CLER) Pers/month0 0 0,5 1 0,5 2 5 0 0 3 5 3 10 7 2.1.3.4 Training of water point management committees (CGPE) Pers/month0 0 0,5 1 0,5 2 5 0 0 3 5 3 10 7 2.1.3.5 Training of market and warehouse management committees (23)Pers/month 0 0 0,5 1 0,5 2 5 0 0 3 5 3 10 7 2.1.3.6 Wheelbarrows and rickshaws to transport agricultural productsLot 0 0 1 1 0 2 15 0 0 15 15 0 30 20 2.1.3.7 Provision of rural road maintenance materials and tools to CLERSLot 0 0 1 1 0 2 15 0 0 15 15 0 30 20

2.2 Agricultural Advisory Services 2.2.1 Radio broadcast of social messages and messages on project activitiesAdvert 0 24 24 24 24 96 0,4 0 10 10 10 10 38 25 Total Services 0 87 179 150 105 520 340 IV. Total Component net of taxes 0 1 213 2 104 255 105 3 676 2 400

DEMOCRATIC REPUBLIC OF CONGO PROJECT TO DEVELOP NR1 AND REHABILITATE RELATED RURAL INFRASTRUCTURE PROJECT MANAGEMENT COMPONENT Item Quantities U.P. Cost in USD Cost in Unit A1 A2 A3 A4 A5 Total USD ThouA1 A2 A3 ThouA4 A5 Total UA Thou II-Recurrent Costs 1. ADF Performance Allowances Strengthening of IU with a GR Expert Persoin chargen/month of Agri. 9 & Rural12 Comp.12 12 12 57 2,188 20 26 26 26 26 125 81 2. Travel Expenses of State Employees (focal points) Gender Focal Point at Tshikapa (5 travel Perso days/month)n/day 15 60 60 60 30 225 0,1 1,5 6 6 6 3 23 15 DVDA Focal Point at Tshikapa (5 travelPerso days/month)n/day 15 60 60 60 30 225 0,1 1,5 6 6 6 3 23 15 SNHR Focal Point (5 travel days/monthPerso) n/day 15 60 60 60 30 225 0,1 1,5 6 6 6 3 23 15 SENAHRU Engineer (5 travel days/monthPerson/)day 15 60 60 60 30 225 0,1 1,5 6 6 6 3 23 15

II-Total Recurrent Costs 26 50 50 50 38 215 140

Total Related Agricultural and Rural Infrastructure 46 4 473 6 649 2 169 143 13 480 8 803

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ANNEX No. 2: RATIONALE FOR WAIVING THE 10% MINIMUM COUNTERPART CONTRIBUTION TO THE PROJECT FINANCING

This section analyzes the rationale for waiving the national counterpart contribution submitted to OPSCOM for financing the Project to Develop the Tshikapa-Kamuesha Section of the Tshikapa-Mbuji Mayi Road and Rehabilitate Related Rural Infrastructure in the Democratic Republic of Congo. The requested waiver aims to reduce the Government’s contribution to 0%, rather than maintain the minimum rate of 10% required by the Bank Group Eligible Expenditures Policy. It is based on three criteria defined by the above Bank policy, especially relating to cost- sharing. These three criteria are summarized below: 1. Country’s Commitment to Implement its Overall Development Programme In 2001, the Government implemented a robust economic and structural reform programme which, coupled with efforts to consolidate political stability, contributed to economic recovery after a decade of decline. Real GDP growth averaged 5.8% over the 2002-2012 period. This positive result was obtained through an economic programme backed by the IMF under an Extended Credit Facility concluded in December 2009. Furthermore, since 2006, Government has designed and implemented two national Growth and Poverty Reduction Strategies – the ongoing strategy covers the 2011-2015 period. 2. Financing Allocated by the Country to Sectors Targeted by Bank Assistance In the last five years, the Government of DRC has made the building and construction sector, in particular the rehabilitation and reconstruction of roads, the pillar of its public investment policy. Thanks to a vast economic and social infrastructure development and modernization programme launched with the aid of development partners, and implemented from 2005 to March 2013, 2.290 km of paved roads were rehabilitated, another 130 km of roads paved, 3 554.40 km of earth roads opened/rehabilitated and many long-span bridges built. Public investments earmarked for rehabilitation or construction works as well as those meant to maintain minimum service on major roads of the national network are on the increase. They rose from USD 33 million in 2008 to USD 126 million in 2009. This upward trend is offset by the sheer immensity of needs evaluated at USD 4 500 million in the action plan for 2003-2015, being financed by the Government. More should be done to mobilize local resources to finance road maintenance. The National Road Maintenance Fund’s resources grow by an average 10% yearly. In 2012, the Fund collected nearly USD 85.83 million against projections of around USD 77.52 million, representing an achievement rate of 110.71%. The same year, the Fund financed maintenance works to the tune of around USD 70.23 million, including maintenance of general utility roads, agricultural feeder roads and transfers to provinces based on road maintenance projects/programmes prepared by road agencies. 3. Country’s Budget Situation and Debt Level Apart from 2010 when the budgetary surplus represented 3.7% of GDP, thanks mainly to the benefits of debt relief after the country reached the HIPCI completion point in July 2010 and the substantial increase in external support, DRC has witnessed chronic public

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finance deficits. In the last couple of years, the overall budgetary deficit widened from 2.2% of GDP in 2011 to 3.0% in 2012, mainly owing to dwindling external contributions, coupled with high pressure especially of election-related expenses. While grants awarded to DRC represented 14.1% of GDP in 2010, they were only 8.5% of GDP in 2011 and 2012. Furthermore, the country’s fiscal situation can be affected by the unfavourable trend of its macro-economic position due mainly to lower international demand and commodity prices and higher security expenditure. With regard to debt, DRC’s debt servicing is significantly reduced because it reached the HIPC completion point, qualified for MDRI and its current debt policy is posited on the requirement of concessionality of new loans. Under the HIPC Initiative, the country’s external debt worth USD 10.8 billion was written off in July 2010. Debt service which represented 43% of public revenue in 2009 fell to 6.4% in 2010 and 2.6% in 2011. However, according to the IMF’s March 2013 report, the risk of a debt overhang in the DRC is still high. The public debt situation in Congo is characterized by substantial internal debt arrears. Successive DRC portfolio reviews and project completion reports show that a recurrent generic challenge for projects remains the payment of counterpart contribution by the State. This situation not only blocks the implementation of projects but also adversely affects portfolio performance. Since 2010, the Bank has contributed 100% of all costs incurred in project implementation in DRC, including PMR-RH, PADIR, PAM-FP and the Project to Develop the Loange-Lovua Bridge Section of the Batshamba-Tshikapa Road. In view of the foregoing, the waiver of DRC’s 10% minimum counterpart contribution to financing the project to strengthen socio-economic infrastructure in the Centre Region is justified.

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