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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 363 19 PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT Public Disclosure Authorized IN THE AMOUNT OF SDR 8.3 MILLION (USD 12.3 MILLION EQUIVALENT) AND A PROPOSED CREDIT IN THE AMOUNT OF SDR 7.6 MILLION (US$11.2 MILLION EQUIVALENT TO THE Public Disclosure Authorized KINGDOM OF LESOTHO FOR INTEGRATED TRANSPORT PROJECT September 15,2006 Public Disclosure Authorized This document has a restricted distribution and may. be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective July 3 1, 2006) Currency Unit = Lesotho Maloti Lesotho Maloti 6.9250 = US$1 US$1.48217 = SDR1 FISCAL YEAR April 1 - March 31 ABBREVIATIONS AND ACRONYMS ADB African Development BanMFund AG Auditor General APL Adaptive Program Lending BADEA Arab Fund for Economic Development in Africa CAS Country Assistance Strategy CTP Contractors Training Program DCA Department of Civil Aviation FA Financing Agreement DCI Development Cooperation of Ireland DRR Department ofRural Roads DTT Department of Traffic and Transport EC European Commission EDF European Development Fund FMR Financial Management Report Genfund Norwegian Trust Fund for Gender Mainstreaming GIS Geographic Information System GoL Government of Lesotho HDM Highway Design and Maintenance Standard Model ICP International Comparison Program IDA International Development Association IMT Intermediate Means of Transport ITP Integrated Transport Project KFAED Kuwait Fund for Arab and Economic Development KfW Kreditanstalt fir Wiederaufbau Entwicklungsbank LOA Loan Department LORSP Letter of Roads Sector Policy LOSP Letter of Sector Policy LRMS Lesotho Road Management System M&E Monitoring and Evaluation MMC Maseru Municipal Council MoFDP Ministry of Finance and Development Planning MOL Ministry of Local Government MoPWT Ministry ofPublic Works and Transport PPF Project Preparation Facility PRS Poverty Reduction Strategy 2004/2005 - 2006/2007 PU Planning Unit RE3 Road Branch RD Roads Directorate RF Road Fund RRMP Road Rehabilitation and Maintenance Project RTIP Road Transport Infrastructure Project (EC) RUC Road User Charges SADC Southern African Development Community SATCC Southern Africa Transport and Communication Commission SEA Sector Environmental Assessment SIL Specific Investment Loan SSATP Sub-Saharan Africa Transport Policy Program TSP Transport Sector Program VCT Voluntary Counseling and Treatment Vice President: Gobind T. Nankani Country Managermirector: Ritva S. Reinikka Sector Manager: C. Sanjivi Rajasingham Task Team Leader: Gylfi Palsson Co-Task Team Leader Subhash C. Seth LESOTHO Integrated Transport Program CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE .................................................................. 1 1. Country and sector issues .................................................................................................... 1 2 . Rationale for Bank involvement .......................................................................................... 2 3 . Higher level objectives to which the project contributes .................................................... 3 B. PROJECT DESCRIPTION.................................................................................................. 4 1. Lending instrument .............................................................................................................. 4 2 . Program objective and Phases ............................................................................................. 4 3 . Project development objective and key indicators .............................................................. 4 4 . Project components .............................................................................................................. 5 5 . Lessons learned and reflected in the project design ............................................................ 9 6 . Alternatives considered and reasons for rejection ............................................................... 9 C. IMPLEMENTATION ........................................................................................................... 9 1. Partnership arrangements .................................................................................................... 9 2 . Institutional and implementation arrangements ................................................................ 10 3 . Monitoring and evaluation of outcomeshesults ............................................................... -11 4 . Sustainability ..................................................................................................................... 12 5. Critical risks and possible controversial aspects ............................................................... 13 6 . Grant and Credit conditions and covenants ....................................................................... 15 D. APPRAISAL SUMMARY .................................................................................................. 15 1. Economic and financial analyses ....................................................................................... 15 2 . Technical ........................................................................................................................... 16 3. Fiduciary ............................................................................................................................ 16 4 . Social ................................................................................................................................. 17 5 . Environment ...................................................................................................................... 19 6 . Safeguard policies.............................................................................................................. 19 7 . Policy Exceptions and Readiness ...................................................................................... 20 Annex 1: Country and Sector or Program Background .......................................................... 21 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies. .................30 Annex 3: Results Framework and Monitoring......................................................................... 32 Annex 4: Detailed Project Description ...................................................................................... 37 Annex 5: Project Costs ................................................................................................................ 44 Annex 6: Implementation Arrangements .................................................................................. 45 Annex 7: Financial Management and Disbursement Arrangements ..................................... 47 Annex 8: Procurement ................................................................................................................ 52 Annex 9: Economic and Financial Analysis .............................................................................. 57 Annex 10: Safeguard Policy Issues............................................................................................. 61 Annex 11: Project Preparation and Supervision ...................................................................... 64 Annex 12: Documents in the Project File .................................................................................. 66 Annex 13: Statement of Loans and Credits............................................................................... 66 Annex 14: Letter of Transport Sector Policy......................................................... 67 Annex 15: Country at a Glance .................................................................................................. 80 MAP: IBRD 34949 .......................................................................................... 82 LESOTHO LESOTHO INTEGRATED TRANSPORT PROJECT PROJECT APPRAISAL DOCUMENT AFRICA AFTTR Date: September 19, 2006 Team Leader: Gylfi Palsson Country Director: Ritva S. Reinikka Sectors: Roads and highways (80%); General Sector Managermirector: C. Sanjivi transportation sector (20%) Raj asingham Themes: Rural services and infrastructure (P);Administrative and civil service reform (P);Regional integration (S);Infrastructure services for private sector development (S);Municipal governance and institution building (S) Project ID: PO75566 Environmental screening category: Partial Assessment Lending Instrument: Specific Investment Loan [ ] Loan [XI Credit [XI Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 23.50 ProDosed terms: AS SOCIATION IDA Grant 7.30 5.00 12.30 EC: EUROPEAN DEVELOPMENT 3.50 6.00 9.50 FUND (EDF) Total: 14.50 23.70 38.20 Responsible Agency: Ministry of Public Works and Transport Lesotho Annual 2.00 12.00 15.00 7.00 2.20 0.00 0.00 0.00 0.00 Cumulative 2.00 14.00 29.00 36.00 38.20 38.20 38.20 38.20 38.20 .I Does the project require any exceptions from Bank policies? Ref: PAD D. 7 [ ]Yes [XINO Have these been approved by Bank management? [ ]Yes [ IN0 Is approval for any policy exception sought from the Board? [ ]Yes [XINO Does the project include any critical risks rated “substantial” or “high”? [XIYes [ ]No Ref: PAD C.5 Does the project meet the Regional criteria for readiness for implementation? [XIYes [ ]No Ref: PAD D. 7 Project development objective Ref: PAD B.2, Technical
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