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World Bank Document Documentof The World Bank FOR OmCIAL USE ONLY Public Disclosure Authorized Report No. 11670-CD STAFF APPRAISAL REPORT REPUBLIC OF CHAD SECOND TRANSPORT SECTOR PROJECT Public Disclosure Authorized June 3, 1993 Public Disclosure Authorized Infrastructure Operations Sahelian Department Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCYEOUIVALENTS Currency Unit = CFA Franc (CFAF) I US$ 250 CFAF I CFAF = 0,004 US$ FISCAL YEAR January I - December 31 SYSTEMOF WEIGHTS AND MEASURES:METRIC I meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 miles (mi) 1 square kilometer (km2) = 0.39 square miles i metric ton (t) = 2.205 pounds (lb) This report is based on findings of an IDA appraisal mission which visited Chad in January 1993, comprising Messrs. Amadou B. Cisse, PrincipalTransport Engineer and Mission Leader, Abdeighani Inal, Highway Engineer. Consultantswere Messrs. Carlos de Castro, Transport FacilitationSpecialist; Jean Baudoin, Transport Institution Specialist; Jacques Baillon, Road Maintenance Specialist; Jacques Bret, Mechanical Engineer; Guirec Delanoe, Transport Economist; Jean Dubost, Transport Industry Specialist; Durany Jakob, EnvironmentSpecialist; Andre Garaud, Soils and Road MaterialsSpecialist; Michel Guimbert, Road MaintenanceSpecialist; Hennion, Transport Economist;Jean Marc Heron, Fin. Specialist; Marc Pages, EnvironmentSpecialist; Louis-PierreRibes, Engineer, Bridge Specialist. Mr. Peter Watson and Ms. Katherine Marshall are the managingDivision Chief and Department Director respectivelyfor the operation. FOR OMCIAL USE ONLY ACRONYMS AND ABBREVIATIONS AfDF African DevelopmentFund ASECNA Agence de S6curit6pour la NavigationA6rienne BDEAC Banque des Etats de l'Afrique Centrale BNF Bureau National de Fret CAA Caisse Autonomed'Amortissement CAER Compte Autonomed'entretien routier CFD Caisse Francaisede Developpement CTT Cooperativedes TransporteursTchadiens DTS Direction des Transportsde Surface ECC EuropeanCommunity Commission EDF EuropeanDevelopment Fund EDIFACT ElectronicData InterchangeFor Administration,Commerce and Transport FAC Fonds d'Aide et de Cooperation GETRANS Gestion-Transport-Service GNP Gross National Product GPR GroupementProfessionnel Routier ICB InternationalCompetitive Bidding ICC InternationalChamber of Commerce IDA InternationalDevelopment Association IMF InternationalMonetary Fund LCB Local CompetitiveBidding LNBTP LaboratoireNational du Batimentet des Travaux Publics (NationalLaboratory of Public Works and Building) LVO Lettre de Voiture Obligatoire MSE Medium-ScaleEnterprises MTPT Ministeredes TravauxPublics et des Transports NFS Net Freight Service OFNAR Office National des Routes ONPC OfficeNational des Ports du Cameroun PASET Projet d'AjustementSectoriel des Transports PIP Public InvestmentPlan PPF ProjectPreparation Facility PST Projet SectorielTransport PTA PreferentialTrade Agreement RFA R6publiqueF6d6rale d'Allemagne RRP Regional reform program SA Special Account SDR Societ6de D6veloppementRural SDT Syndicatdes Transporteurs SNER Soci6t6Nationale d'Entretien Routier SOE Statementof expenditure TIPAC Transit Internationaldes Pays de l'Afrique Centrale TSAIP Transport Sector Adjustment/InvestmentProgram TSP Transport Sector Project TSP2 Transport SectorInvestment Project II UDEAC Union des Etats d'Afrique Centrale UNDP United Nations DevelopmentProgram USAID United States Agencyfor InternationalDevelopment VIC Vehicle InspectionCentre This document has a restricted distribution and may be used by recipients only in the performance of their officialduties. Its contents may not otherwise be disclosedwithout World Bank authorization. REPUBLIC OF CHAD TRANSPORT SECTOR PROJECT II STAFF APPRAISAL REPORT Table of Contents CREDIT AND PROJECT SUMMARY ..................................... i I. COUNTRY POLICIES AND BANK GROUP'S ASSISTANCE STRATEGY ......... A. Introduction .............................................. 1 B. Background and Recent Economic Performance ........................ 1 C. Bank's Assistance Strategy ..................................... 3 H. THE TRANSPORT SECTOR ....................................... 4 A. Background .............................................. 4 B. IDA Involvement in the Transport Sector ............................ 6 C. Implementation and Achievements of the Three Previous Projects ............. 9 D. Lessons Learned and Remaining Sectoral Issues ....................... 12 Ml. RATIONALE FOR IDA INVOLVEMENT ............................. 13 IV. THE PROPOSED SECOND TRANSPORT SECTOR INVESTMENT PROJECT .... 14 A. Project Objectives .......................................... 14 B. Project Description .......................................... 14 C. Project Costs and Financing .................................... 24 D. Impact on Environment ....................................... 27 V. PROJECT IMPLEMENTATION ....... .......... ................... 27 A. Status of Project Preparation and Readiness .......................... 27 B. Implementing Agencies ....................................... 27 C. Project Coordination Unit (PCU) ................................. 28 D. Monitoring and Evaluation ..................................... 28 E. Procurement .............................................. 30 F. Disbursement ............................................. 31 G. Reporting and Auditing ....................................... 33 H. Project Sustainability ........................................ 34 VI. PROJECT JUSTIFCATION AND RISKS .............................. 34 VII. AGREEMENTS REACHED AND RECOMMENDATION ................... 35 ii ANNEXES: Annex 1: Key MacroeconomicIndicators, Balanceof Payment, Status of Bank Operations Annex 2: Detailed Cost Estimate Annex 3: DisbursementSchedule Annex 4: Project ImplementationSchedule Annex 5: Letter of Transport Sector Policy Annex 6: RegionalIntegration Action Plan Annex 7: Road Design and ConstructionStandards Annex 8: Priority Network Annex 9: ProcurementPlan Annex 10: Training Program DOCUMENTSIN THE PROJECT FILE: 1: Evaluation de la composanteinstitutionnelle routiere du PASET, Septembre 1992 2: Rapport de missionsur l'industrie des transportsroutiers du Tchad Bilan et Orientationsdu PASET, Juin 1992 3: Incidencedes cofltsde transport sur les prix a la consommationa N'Djamena, Octobre 1992 4: Etude pour la Reforme de l'Entretien Routier Rapport sur le diagnosticet les scenarios possibles, Septembre 1992 5: Etude pour la Reforme de l'Entretien Routier Rapport sur la reorganisation,Novembre 1992 6: Definitiond'un plan d'action pour la facilitationdu transit international,AoOt 1992 7: Etude pour la restructurationde la Brigade Routierede Cotontchad,Septembre 1992 8: Programmede recherche routiere pour l'amnliorationdes standardsde construction, Octobre 1992 9: Etude de restructurationdu Genie Routier Tchadien, Septembre 1992 10: Inventaire- Diagnosticdes ouvragesd'art du PST 2, Novembre 1992 11: Etude d'impact du Second Projet Sectoriel des Transports, Octobre 1992 12: Etude 6conomiquepour le SecondProjet Sectorieldes Transports, Novembre 1992 CHARTS: Chart 1: Chart of the Ministryof Public Works and Transports MAPS: IBRD 24924 iii REPUBLICOF CHAD SECONDTRANSPORT SECTOR PROJECT CREDITAND PROJECTSUMMARY Borrower: Republicof Chad Beneficiary: Ministry of Public Works and Transports Credit Amount: SDR 26.2 million (US$37.0million equivalent) ITrms: StandardIDA terms with 40 years maturity Co-financiers: European DevelopmentFund (FED, US$22.0 million equivalent);French DevelopmentFund (CFD, US$4.2 million equivalent);Central Africa DevelopmentBank (BDEACUS$15.0 million equivalent);OPEC Fund (US$6.0 million equivalent). African DevelopmentBank, BADEA, Islamic Bank, Kuwait Fund also expressedinterest with no precise amountyet. Obective: The main developmentobjectives of the proposed project are: (a) to help stimulate industrialand agriculturaldevelopment and regionaltrade through consolidatingimprovements in transport sector efficiency focussingon continuedreductions in vehicle operating costs and improvementin the efficiencyof the transport market; (b) to continueto improve public investmentefficiency, transparency and budgetary management;(c) to improve internal resource mobilizationto fill the long-term need for routine road maintenance;(d) to promote private sector involvementin road maintenanceand strengthenthe road transport industry; and (e) to streamline and continueto improve public administrationof the sector. To achieve the objectives,the proposed SecondTransport Sector Project (TSP II) would implement: (a) the consolidationagenda to ensure that the positive achievementsunder the TSAIP are maintained,(b) the continuingagenda of sectoral objectivesthat were only partially met under TSAIP and (c) the evolving agenda to address long-termissues of sustainabilitycritical to the transport sector program. In summary, the contentof the agendas is as follows: ConsolidationAgenda: investmentplanning road maintenance resource mobilizationand allocation liberalizationand deregulation ContinuingAgenda: institutionbuilding private sector involvement iv Evolving Agenda: secondaryagricultural road rehabilitation environment regional integrationand tradefacilitation Description: The proposed project would support these agendas through a set of policy measures largely met through up-front conditionalitiesand investment components.
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