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-Pierre Ribes, 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 Bilanet 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 stimulateindustrial and agriculturaldevelopment and regionaltrade through consolidatingimprovements in transport sector efficiency focussing on 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 EvolvingAgenda: 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. The physical works componentconsists of: (i) a program of road routine and periodic maintenanceand bridge strengtheningon the existing priority network of 4,760 kIm;and (ii) a program of about 300 kunof secondary roads crucial for the linkage between regions of agricultural potential (Salamatregion) and main consumptioncenters. The rograimof institutionalstrengthening comprises: (i) consultingservices for civil works design and supervision,soil research studies and testing, and technical and financial audits; (ii) consultingservices to promote private entrepreneurship for small and medium constructioncontractors and small truckers; (iii) technicalassistance and training (mainlyshort-term consultancies)for transport sector institutions(Directorate of Roads, Air Tchad, BNF, Directoratesof Civil Aviation and Land Transport, and the Project CoordinationUnit; (iv) support for the implementationof a regional integrationaction plan aiming at facilitating Chadian internationaltrade for road and air transport; and (v) implementationof a transport sector environmentalaction plan.
Benefitsand Risks: The proposed project is justified since Chad's landlockedeconomy relies entirely on roads for efficient intra- and inter-countrytrade. Rates of return for highwayrehabilitation and maintenancerange from 14% to 42%. For the package of secondaryroad rehabilitation,the rate of return is 13%. The proposed project's approach is comprehensiveand takes into accountthe complementarityof air and road transport and measures aimed at having a positive impact on the environment. The principal risk remains the chronic political instabilitywhich might affect the political commitmentto fulfill or sustainpolicy reforms and agreed financialconditions. To minimizethis risk, careful attention was given during project preparationto buildinga broad consensusat a high Governmentlevel, with technicalstaff, and with all donors that are active in the sector on the measures proposed and supported by the project. In addition, detailedprocedures, standardizedbidding documentsand implementationmanuals, time-boundimplementation indicators,and the Government'sexperience in project execution tasks from previous projects minimizethe risks associatedwith project execution. v
SummaryProject Cost Estimateand Financing Plan (Net of Taxes and Duties)
US$ Million Project Components Foreign Local Total A. Physical Component 1. Investment Costs - Civil works (a) Rehabilitation 30.2 1.8 32.0 (b) Periodic maintenance 21.6 5.1 26.7 (c) Bridges 1.4 1.4 (d) N'Djamena Interchangebldg 3.4 3.4 2. RecurrentCosts (a) RoutineMaintenance 3.9 25.4 29.3 B. InstitutionalStrengthening Component 1. Consultantsservices for Public Works (a) Studies and works supervision 3.4 3.4 (b) Technicalassistance 2.9 2.9 (c) Auditsand Proj. Coord. Unit 1.6 1.6 2. Consultantsservices for Transport and Civil Aviation (a) Studiesand supervision 0.3 0.3 (b) Technicalassistance 0.6 0.6 3. Training and scholarship 3.55 3.55 4. Operating Costs (PCU) 0.7 0.5 1.2 C. Continencies 1. Physical contingencies 5.9 2.2 8.2 2. Price contingencies 3.4 2.2 5.6 D. RefinancingPPF 1.25 1.25 TOTAL 84.1 121.4
FinancingPlan (US$ million equivalent) Local| Foreign Total % of total project cost
Government 37.3 -- 37.3 31%
IDA -- 37.0 37.0 30%
Other donors -- 47.1 47.1 39% Total project cost 37.3 84.1 121.4 100%
EconomicRate of return: For road periodic maintenance: 14% - 42% For the package secondaryagricultural road rehabilitation: 13%
REPUBLICOF CHAD
TRANSPORTSECTOR PROJECT II
STAFF APPRAISALREPORT
I. COUNTRYPOLICIES AND BANK GROUP'SASSISTANCE STRATEGY
A. Introduction
1.1 The Governmentof Chad has requested IDA financingfor a follow up of the ongoing Transport Sector Adjustment/InvestmentProgram (TSAIP). The broad objective of the project is to consolidatethe achievementsof TSAIP to help stimulate industrial and agriculturaldevelopment and regionaltrade through further improvementsin transport efficiency,and public investmentefficiency and budgetary management. Its specificobjectives are to reduce vehicle operating costs and transport prices through a defined program of road rehabilitation and maintenance, to achieve regular and reliable budgetary allocations to road maintenanceand to increase the involvementof the private sector in highwaymaintenance.
1.2 The total investmentprogram cost is estimated at US$121.4 million equivalent (net of taxes and duties), with a foreign exchange componentof US$84.1 million. Governmentwill finance US$37.3 million in recurrent costs for routine maintenance and counterpart funding for donor investments. The foreign exchange componentwill be fully funded by external donors. Under the proposedproject, which will be the fourth IDA-financedoperation for the developmentof the transport sector in Chad since 1986, IDA would finance a portion of the investmentprogram for the five-year period (1994-98)for an equivalentamount of US$37.0million. Investmentprogram and policy measures supported through the project are based on lessons learned from the first three projects, the donors' roundtable held in November 1992, sector studies commissionedbetween 1990 and 1992, and the participatoryapproach adopted for the preparation of the project through the interministerialsteering committee.
B. Background and Recent Economic Performance
1.3 Background. Chad presents a major development challenge. It juxtaposes a highly uncertainpolitical situation,a prospectof renewed breakdownof order, extreme poverty, and reasonable growth prospects. Chad is a vast country, the fifth largest in Africa, and groups together a large number of extraordinarilydiverse ethnic groups. With 5.8 million inhabitantsand a per capita GNP estimated at US$210 in 1991, Chad is one of the poorest, least-developedcountries in the world. Economic developmentefforts have been characterizedby successivepromising starts stymiedby serious internal and externalblows. Recurring political instabilityand domesticstrife, which erupted into civil war from 1979 to 1983, have been and remainthe most intractableconstraints to development. Chad has also been severely affected by drought. Despite a major post-war reconstruction effort, Chad's physical infrastructure,human resources,and institutionaland administrativecapacity to support developmentare today still at the level where most other low income sub-SaharanAfrican (SSA) countries were in the 1960s. Chad ranks 150thout of 160 countries on UNDP's 1992 Human DevelopmentIndex. 2 1.4 Despiteall its handicaps, Chad has a number of positiveelements to build upon and good intrinsicgrowth potential. Comparedto other Saheliancountries, Chad is relatively well endowed with natural resources for agriculturalproduction, especially in the south where much of the population is concentrated. Food production is generally sufficient to meet domestic demand, and agriculture - particularlylivestock and cotton production- are key sources of future growth. The private sector could play a dynamic role, beyond the informal and rural production circuit, as a driving force in the formal economy. Exploitationof proven oil reserves for domesticconsumption could add impetusto economic growth in the medium term, by improvingthe reliability of supply and reducing the cost of electricity and diesel fuel--keyproduction inputs. Oil explorationin the south holds out the promise of substantial reserves which could be exported; this could attract significant private investment and dramatically transformChad's long-termeconomic prospects. Chad's turbulenthistory has also left positiveelements: the civil service is modest in size; the economy is relativelyunregulated; the populationhas shown great self-reliance;and alternativesto public provisionof services have developed. Chad does not have the baggageof poor policiesand entrenchedinterest groups supportingparticular policieswhich hamper many other African countries, so most developmentefforts are focused on building rather than dismantling. The Governmenthas exhibiteda positive,open dialoguewith donors as well as a willingnessto try new approaches. Finally, the internationalcommunity has expressed a willingnessto respond positivelyto suitabledevelopment initiatives in recognitionof the country's poverty and urgent developmentneeds.
1.5 Economic Structure. Chad's economy is based on agriculture, which generates 35-40% of GDP and providesa livelihoodfor more than 80% of the population. Subsistenceproduction of food crops by smallholdersis the principal economicactivity, but output fluctuates widely, depending upon rainfall. Livestock and cotton constitute the most important sources of cash income for the rural populationand for export earnings(75%). The small industrialsector, which contributesabout 20% to value added, is dominatedby the parastatal (COTONTCHAD)which processes and exports cotton. The rest of the sector consists of several medium-scaleenterprises and a large number of micro-enterprises which produce consumergoods for the domesticmarket. The service sector makes up the remaining40- 45% of GDP and includes a large trading sector.
1.6 Recent EconomicDevelopments. During the post-war period 1984 to 1990, Chad made substantialprogress in rehabilitatingits economy and promotinggrowth, despite internal and external shocks. By 1987, Chad's economy was more or less restored to its pre-war level, and economic conditionscontinued to improveduring the 1987-90adjustment period. The adjustmentprogram focused on improvingpublic resource managementand efficiency in the cotton sector, and also includedpolicy reforms in transportation,livestock and trade. In 1988and 1989, most of the macro-economicobjectives outlined in the first two Policy FrameworkPapers (PFP) were attained. Important progress was made in reviving key sectors of the economy. Together the adjustmentprogram and the investmentprogram that emphasizedagriculture and transportationreversed some of the negative impactson the incomeand living conditionsof the populationcaused by the successionof civil war, drought and the cotton crisis. Moreover,the program had a positive impact on growth performance, particularlyin the cotton sector. Real GDP growth averaged4.5% per year and inflation was low. Public investment,which was totally externallyfinanced, doubled to nearly 10% of GDP in 1990;official development assistance flows tripled. With the recovery in cotton export revenues, the current accountdeficit was reduced to 27% of GDP in 1990. The gross domestic savings rate, perenniallynegative, improved somewhat to -12% of GDP in 1990.
1.7 With the abruptchange in politicalregime in 1990, the adjustmentprogram went off-track and the fiscal situation deteriorated; the third-year PFP targets (1990-92) for revenues, current 3 expenditures,and the currentbudget deficit have all been missedby significantmargins. The expenditure overruns since 1990have been due to pressuresfrom the militaryexpenditures and the civilianwage bill, while revenues declined (particularlyfor customs). In late 1991, the Governmentpresented an informal outline of a stabilizationprogram, includingbudgetary targets and related policy measures. However, few concrete actions were taken until mid-1992. At that time, the Government, under the leadershipof a new prime minister, took decisive steps to stabilize the wage bill, includinga temporary reductionof nominal wages. The budget deficit burgeoned in 1991 (7% of GDP), although this was mitigated somewhat by the high level of budget support from external donors. In 1992, this external support largely dried up (droppingby half). The current deficit fell to US$65.7 million (4.7% of GDP) due primarily to actions on the wage bill and lack of liquidity (65% of the deficit was covered by new arrears). The most difficulteconomic issue facing the transitiongovernment, appointed by the National Conferencein April 1993, is how to deal with this financialcrisis, in particular how to pay civil servants and arrears to domestic suppliers who are on the verge of bankruptcy. Paradoxically, real economic growth for 1991 and 1992 averaged 8% as favorableweather conditionsled to strong growth in output of food crops and cotton. However, the economicpicture is less favorablethan these figures indicate. Though difficultto measure, a strong contractionin monetized,economic activity seemsto be occurring withthe deepeningof the budget crisis, declineof the cotton sector, and a substantialdrop in investment.
C. Bank's AssistanceStrategy
1.8 The Bank's assistance strategy supports the objectives of alleviating poverty and improvingthe prospects for long-term growth by: (i) increasingthe accessibilityand quality of basic social services; (ii) increasingincomes through productivityincreases and improved services (including transportation) to the agricultural sector where the majority of the population live and work; (iii) improving basic infrastructure which serves to increase competitivenessand improve welfare; (iv) promotingemployment generation and entrepreneurshipby encouragingthe provisionof services by the private sector; (v) supportingthe reallocationof public expenditurestowards developmentpurposes; and (v) promotinga coherent strategy for tapping the potential of the energy sector.
1.9 The assistance strategy is flexible and designed to build on Chad's positive attributes, continue the policy dialogue and adjust rapidly to an improvement in country conditions. Under the current circumstances,the Bank is implementinga core program of support to alleviate poverty through activitiesthat address basic poverty issues, place minimaldemands on Governmentadministration and finances, make maximumuse of non-Governmentcapabilities; and improve the prospectsfor long-term growth. It emphasizesoperations that can succeednow and yield benefitsfor the next generation:health, education, agriculture, infrastructure, and energy. The Bank is working with Government towards a redefinitionof its role combinedwith a major effort to build the capacityof privatebusiness, community, and voluntary organizations. The Bankwill continueto work activelytowards establishmentof a macro- economicframework that meets stabilizationgoals. (The Bank's Country AssistanceStrategy is fully explainedin the Memorandumof the Presidentfor the Chad EducationProject discussed by the Board in May 1993.) 4 II. THE TRANSPORT SECTOR
A. Background
2.1 Chad's survival and future developmentas a landlockedcountry almost 2,000 km from the sea with vast distancesbetween the main urban centers depends on adequatetransportation capacity and reduced transport costs. Among the major characteristics of Chad's transport sector are the predominanceof the highwaysubsector which accounts for the bulk of domesticand internationaltraffic, and the limitedvolume of inter-urbanpassenger traffic, whichwas seriouslydisrupted by war and is still negligible. There is no railway, nor are there any feasible plans to build one. Seasonal inland water transport is possible on a few river sections and certain parts of Lake Chad, though navigabilityof waterwayshas generally been negativelyaffected in recent years by erratic rainfall patterns. Becauseof this, a meaningfulstrategy for Chad's transport sector must be focusedon the highway network and the trucking industry.
2.2 HighwaySubsector. Chad's highwaynetwork consists of about 7,300 km of classified roads (i.e. roads for whose maintenancethe central governmentis formally responsible)and 24,000 km of unclassifiedtracks in rural areas. The highwaynetwork suffered from many years of inadequateor non-existentmaintenance (particularly during the 1979-82 war). As a result, in 1986 only 30 km of paved roads were in good conditionout of the mere 300 km that existed before the war. Since then, donor intervention,including strong and continuousIDA supporthas permitted the rehabilitationof about 3000 km out of the 3800 km consideredby Governmentand the donors to constitute the priority road network. The priority road networkhas been defined as the smallestsubset of classifiedroads providing adequatelinks between N'Djamenaand major domestic centers of economicactivity and between Chad and neighboring countries. Out of the 3000 km rehabilitated,only 263 km have been paved; the rest have been rehabilitatedto modem earth road standards.
2.3 The rehabilitationworks have stimulatedroad traffic levels that are considerablyhigher than the forecasts made at the time of TSAIP appraisal. The traffic on paved roads ranges from 150 to 200 vehicles per day, while on modern earth roads the average is 50 vehicles per day. Between 1989 and 1992 the yearly growth in traffic was 25% with 50% of heavy trucks transporting both cotton products and agriculturalproducts grown in the area, as well as imported manufacturedgoods.
2.4 Accordingto official statistics,domestic freight transport by road handles about 330,000 tons per year; of this 150,000 tons represents traffic internal to the relatively small cotton zone and 45,000 tons the distributionof petroleumproducts. Domesticfood flows in a normal year are estimated at about 15,000 tons.
2.5 7ruckingIndustry. Historically, road freight transport in Chad has been characterized by a high degree of regulationand lack of competition. The Cooperativedes TransporteursTchadiens (CIT), which was liquidated under the TSAIP, was the cornerstone of this regulatory framework. Followingindependence, CTT was created to help organize small Chadiantransporters to compete with Unitchadienne,a large foreign-ownedtransport company. In 1987, the Governmentpassed legislation giving C'T an absolute monopolyover all freight transport, internationaland domestic. Also in 1987, the Government dissolved CTT's Board of Directors and established a Managing Committee whose members were appointedby Government, effectivelyplacing CTT directly under its control. 5 2.6 Since CTT was the road freight transport monopoly, it was legally entitled to centralize all supply and demand. On the one hand, all truckers were required to become members of CTT and to indicate to CTT their availability. On the other hand, all shippers were required to indicate to CTT their transport needs. On the basis of informationreceived from truckers and shippers, CTT matched freight transport demand and supply accordingto internal procedures that were far from transparent. CTT charged freight rates establishedby the Ministry of Transport and Civil Aviation (on the basis of cost data supplied by CTr itself). It kept a commissionequivalent to 10% of invoice amounts, which some members complainedwas too high for the services provided by CTT. CTT was also in charge of collectingtransport taxes on behalf of the Governmentand occasionallyreceived significant subsidies from Government for truck purchases. While some small shippers and truckers may have illegally negotiatedfreight transport contractsoutside the frameworkof CTT, larger shippers had no alternative to the CIT.
2.7 The existenceof a captivemarket encouraged inefficiency and high costs in the industry. In addition, the lack of competitionamong truckers allowedthem to capture economicrents. Transport prices were thus doubly penalized.
2.8 In 1988, the financial status of CTT was reviewed by an international auditor who produced a proforma statementfor fiscal year 1988. Inadequateaccounting and irregularitieshad so far hidden the extentof its financialproblems. CIT not only had a current negativenet worth and deficitary earning capacity, but it had accumulatedsignificant arrears in transferringto the Treasury the taxes that it had collectedon behalf of Government. In addition,CTT was comingunder increasingcriticism from some CTT members, who were unhappywith the distributionof availablefreight, and by some shippers who were disappointedwith the qualityof service. The combinationof the complaints,the audit report and increasingpressure from donors to liberalizethe sector finally convincedthe Governmentthat CTT had outlived its usefulnessand that there was no alternativeto its liquidation.
2.9 The Transport Sector Adjustment/InvestmentProject (TSAIP) (Credit 2007-CD) was undertakento support Governmentdecision to implementa major policy reform packagefocusing on the liberalizationof the road transport industry, includingspecifically the abolitionof CTT's monopoly(and its liquidation)and a return to free contractnegotiation between shippers and truckers. Governmentalso adopted a full liberalization of freight tariffs, by abolishing all government intervention in tariff determination. These policy reforms became effective in December 1989 and resulted in the creation of the three private groupings of independent truckers which substantially contributed to enhanced competitivenessamong truckers and to reduced transport rates.
2.10 In addition, a NationalFreight Bureau (BNF) was created to operate, under the overall supervisionof the Ministry of Public Works and Transport, as a non-profit clearing-housemaking publicly availableall demand and supply informationprovided by shippers and truckers. On the basis of this information,shippers and truckers could enter into freely-negotiatedtransport contracts,recorded by BNF for statisticalpurposes. BNF also started collectingfreight taxes on behalf of the Treasury. A recent audit of BNF showedthat its mandate and statutes were satisfactory(although some amendments are needed to more clearly specify its attributes), but that serious improvements are needed in its management,notably with respect to financial management.
2.11 Air Transport. There is one internationalairport in Chad, serving the capital city of N'Djamena, and a handfulof smallerairports, of whiclhonly those at Abeche,Sarh, Moundou,and Faya- Largeau are in acceptable working condition. Air Tchad, the national airline, is a government-owned 6 enterprisewhich runs domesticscheduled flights and internationalcharter services. Domesticcommercial air traffic is relativelylight (about 8,000 passengersper year), but internationaltraffic has grown rapidly since 1982. N'Djamenaairport handles annuallyabout 2,000 internationalflights involvingabout 36,000 passengersand 6,500 tons of air freight. Regular domesticair service is providedby Air Tchadbetween N'Djamena, Sarh, Moundou, Abeche, Mongo and recently Faya-Largeau. Demand for domestic air transport is highly seasonal and average load factors are quite low. Although some domestic flights operate at a loss, the Government attached great importance to them during the current post-war reconstruction and unification period. Given the vast expanse of the country, the impossibilityof providing economicallyefficient road infrastructurebeyond the priority network and the continuing importanceof promotingnational integration, domesticair transport will continueto play an important role in Chad's developmentfor the foreseeablefuture.
2.12 Despite the extensive support given by Government, includingthe free transfer of two planes and free technical assistanceprovided by the French, Air Tchad was virtually bankrupt in 1988 with an operating deficit of CFAF 685 million and a negative equity of CFAF 223 million. In that context, it was agreed under the TSAIP to adopt a restructuringplan for Air Tchad through an Action Plan agreed upon with IDA and signedby the Governmentand Air Tchad. Performanceunder the Action Plan did not meet expectations(see para. 2.35), and the issue will be taken up in a revised form under the proposed project (see para. 4.19).
B. IDA Involvement in the TransportSector
2.13 IDA's post-war involvementin the transport sector began in 1986. IDA consideredthat top priority should be given to restoring Chad's road maintenancecapability in order to support the largely uncoordinatedefforts of many donors who were involved in rehabilitatingparts of the main road network. Good roads were urgently needed to restore the economy,particularly the cotton industry(the country's main foreign exchangeearner).
2.14 The Government had prepared an Interim Plan for 1986-88 which was presented to donors at a RoundTable Conferenceheld in December 1985under the sponsorshipof the United Nations Development Programme (UNDP). In the plan, the Government identified the following broad objectives: achieve food self-sufficiency; resettle the population; reconstitute the livestock herd; rehabilitatethe transport system; and intensify, increase, and diversify export production, with a special emphasison cotton.
2.15 7he HighwayMaintenance Project (Cr. 1728-CD). This project, approved on July 26, 1986, was the first post-war interventionby IDA and was designed to complementthe efforts of other donors in the sector and to initiate effective donor aid-coordination. It covered the first two years of a five-yearmaintenance program for the priority road network. In additionto the high priority maintenance program, the project supported studies and technical assistance for restructuring and strengtheningthe road authority--OfficeNational des Routes (OFNAR)--andtraining staff in OFNAR and other transport policy-makingagencies, in particular the Ministry of Transport and Civil Aviation. The goal of the project was to develop, at least in nucleus form by 1988, the capacity to plan, manage and implement a sustainable program of rehabilitation and maintenance of the high priority network. The specific objectiveswere: 7 (a) to develop the logistical (material and managerial)capacity within OFNAR to maintain and manage the priority network;
(b) to safeguardthe road rehabilitationworks already completedby foreign aid and to ensure their maintenance,for which no provision had been made;
(c) to re-establishnormal use of the road networkby repairing a damagedbridge, the dilapidatedferries, and an unserviceableindustrial road serving N'Djamena; and
(d) to assist in organizingthe transport sector as a whole and the road sub-sectorin particular.
2.16 7he Road ReconstructionProject (Credit 1901-CD). The main objective of the Road ReconstructionProject, approvedon April 26, 1988, was to ensure timely completionof the agreedupon high-priority program. Two formerly paved roads-between Djermaya and N'Djamena and between N'Djamena and Guelengdeng-wouldbe reconstructed,thereby reestablishingthe urgently needed all- weather access and unimpededflow of goods and passengersalong the main North/Southcorridor of the country's road network.
2.17 These two important trunk roads were part of the pre-war 300 km paved road system which had suffered severe deteriorationthrough lack of maintenance. The N'Djamena-Djermayaroad (30 kim)was a key link in the country's northern road system. Althoughit was among the first sections to be rehabilitatedto gravel road standards in 1985 with financing from the French GovernmentAid Agency (FAC), it had deteriorated rapidly again due to heavy traffic and poor soil conditions. The secondlink (146 kim)connects N'Djamena to Guelengdeng,the first leg of the N'Djamena-Guelengdeng- Bongor-Moundouaxis (505 kIm)connecting the capital with the centers of industrial and agricultural productionin the Southernzone. (he reconstructionof the Guelengdeng-Bongor-Moundousection was fully financedby German aid (KfW)and the BDEACunder the Transport Sector Adjustment/Investment Project. The executionof the works is expectedto start in September 1993.)
2.18 The Highway Maintenance Project and the Road ReconstructionProject were both designed to help the Government carry out its post-war reconstructionefforts and strengthen its road rehabilitationand maintenancecapability. While focussed on short-term needs, the two projects also served as a vehicle for dialoguebetween the Governmentand IDA in connectionwith major policy issues and long-termoptions and provided the Governmentand the Associationwith an opportunityto prepare a ComprehensiveTransport Sector Strategy.
2.19 The transport Sector Adjustment/InvestmentProject (Cr. 2007-CD, approvedon April 25, 1989). The comprehensiveTransport Sector Strategy was conceived and designed as a vehicle to support a Transport Sector InvestmentPlan (1988-93) and a package of major policy reforms. It also served as a vehicle for coordinatingdonor involvementin Chad's road rehabilitationeffort as a result of which the transport sector has become a centerpieceof donor assistancein Chad.
2.20 The foundationof the Transport Sector Strategy is the premise that, in the mediumto long-term,Chad's economicgrowth will continueto depend essentiallyon agricultureand livestock. The performanceof the agriculture and livestocksectors depend on three main factors: climatic conditions, the cost of production and the cost of distribution. Important in determiningthe latter two factors are 8 the cost and price of transportinginputs and outputs. Transport costs and prices in Chadhave historically been significantlyhigher than in neighboringcountries because of (a) high vehicle operatingcosts due to poor road conditions;(b) inefficienciesand monopolyprice determinationin the trucking industry; and (c) inefficienciesand high costs resulting from limitedcompetition in the road constructionindustry. It was these obstaclesto the efficient functioningof the sector--andhence the economy--that the Transport Sector Strategy soughtto attack.
2.21 The Government thus formulated a Transport Sector Adjustment/InvestmentProject (TSAIP, Cr. 2007-CD), which consisted of an integrated package of major policy reforms and investmentsdesigned to be carried out concurrentlyin order to yield the full extent of potentialbenefits. Withoutinvestments in road rehabilitationand maintenance,vehicle operatingcosts would remain high; without increased competition in road construction there could not be any cost savings in road rehabilitationand maintenance, and, as a result, more resources would be needed to provide a given quantityof transport infrastructure. And, without liberalizationand deregulation, the savings in vehicle operatingcosts would not be passed on to shippers and consumers.
2.22 Given Chad's landlockedsituation, the reduction in the cost and price of transport supply can be expectedto have a greater developmentalimpact than in countrieswhere the incidenceof transport costs and prices is less pronounced. In particular, the creation of a deregulatedtrucking industry, free from administered tariffs, operating on a well-maintained road network was expected to reduce significantlythe cost and the price of transport, to elicit a supply response from the productivesectors on the economyand, thus, to act as a stimulantto economicdevelopment.
2.23 Actions under the Project. The actions designed under the TSAIP to implementthe strategy outlined above were:
(a) a GovernmentTransport Sector InvestmentPlan 1988-1993aimed at completing by 1993, the rehabilitationof the 3.800 km priority road network;
(b) adoptionof adequateroad constructionand designstandards for the priority road network which, given soil conditionsand traffic forecasts, should be consistent with the minimizationof discountedcapital and recurrent costs over the lifetime of the road;
(c) improvementsin resource mobilization,notably from three different sources: - the improvementof performanceon petroleum tax collection - the increase of petroleum tax rates - the creation of new road user charges and resource allocationto ensure that, once rehabilitated, priority roads would not fall back into disrepair;
(d) abolishingCTT's monopolyand returning to free contract negotiationsbetween shippers and truckers;
(e) liberalize freight tariffs;
(f) increase the role of the Private Sector in road construction and maintenance: 9 the promotion of more extensive internationalcompetitive bidding for road rehabilitation
the implementationof a training program to assist small and medium sized contractorsto undertakeroad maintenance;
(g) reorganize sector institutionsto clarify responsibilities,increase efficiencyand streamline administrativeprocedures; and
(h) implementa restructuringprogram for Air Tchad.
All the actions listed above were achieved except the restructuring of Air Tchad and the resource allocationfor road maintenance;those objectivesand targets were partially met.
2.24 The TSAIP, however, was restructured in 1992 due to the deterioration of the macroeconomicsituation following the abrupt changeof governmentin December 1990. In fact, despite the strong performanceon sectoralreforms, the Governmenthas experienceddifficulties in re-establishing macroeconomicbalance. Specifically,revenue collectionhas proven difficult and overall budgetary managementhas been weak, notably with respect to the civilian wagebill. As a result of this precarious macroeconomicsituation, IDA, at the request of the Government,reallocated the quick disbursingfunds to the investmentcomponent. Nonetheless,the restructuringpursued all the objectives of the initial project and did not affect the policy reform package.
C. Implementation and Achievementsof the Three Previous Projects
2.25 Overall, the three projects have made a significant contribution to restoring Chad's transport sector to a level of performance that enables it to play a substantial role in the economic developmentof the country. Compared with the other parts of the administration,the transport sector is a model in terms of planning, implementation,resource mobilizationand allocation, deregulationand liberalization. It stands out as being a functioningsector in a country fraught with macroeconomic problems, inefficient administrationand chronic political instability. It is in large part due to the existenceof the three projects and to strong IDA pressure for effectivenessin project implementationthat the transport sector has been substantiallyprotected from the problems that have afflictedalmost all other sectors. This is not to say that there have not been problems, but the achievementsfar outweigh the problems. The followingtwo sections set out the achievementsand the unfinished agenda.
2.26 PhysicalAchievements. All three projectshave been extremelysuccessful in meetingtheir physical targets. Under the Highway MaintenanceProject, 2500 km of road were maintainedand 600 km were rehabilitated. Costs were below appraisalestimates, the project was completedon scheduleand the Project Completion Report (PCR) confirmed that the economic rates of return were higher than appraisal estimates (30% compared with 21%). The Road Reconstruction Project financed the reconstructionof 254 km of paved roads. This project was also completedon time, within budget and with a higher than estimated rate of return (20% compared with 13% even after the strengtheningof constructionstandards).
2.27 Seen as a whole, these projects achieved desired results, especially in a region where transport projects typically suffer from substantialcost and time overruns and where rates of return are 10 frequentlybelow appraisalestimates. The proposedproject will continueto pursue the road rehabilitation and maintenanceobjectives of its predecessorsto ensure that roads are not allowed to slip back into disrepair. It will also begin to expand investmentinterventions to rural roads connectingagricultural productionareas to the priority road network.
2.28 FinancialAchievements. One of the importantobjectives of the TSAIP was to improve resource mobilization and allocation to highway maintenance. External mobilization was excellent, mainly due to IDA's active leadershipin aid coordination. By December 1992, the rehabilitationof the remaining sections of the 3,800 km of priority road network had been fully funded. Internal resource mobilizationfor counterpartfunding of external commitmentsand for routine maintenancewas adequate and allocatedin a timely manner throughFY91. A declinehas been experiencedsince FY92, largelydue to the aftermath of the disturbances that disrupted political and economic life in Chad. Budgetary contributionsto routine road maintenancewere adequatefor 1989 and 1990 and amountedto 92% of the target in 1991 despitethe difficultbudgetary situation. The budgetary allocationfor the 1992budget was adequate, but difficulties with liquidity led to problems and delays in the actual transfer of resources. 950 million CFAF representing70% of the FY92 allocationfor road maintenancewere actually paid. The routine maintenanceprogram continuedto be executed efficiently;however, arrears were built up concerning suppliers and the salaries of OFNAR workers. In addition, even though the level and timeliness of funds allocated to road routine maintenancehas not completely met targets, it is worth noting that, in terms of the percentage of committedfunds allocated, Chad is substantially above the average of other Sahelian countries. Given that problems have been noted, the proposed project is introducing--asup-front measures--mechanismsto improve future performance(see para. 4.6).
2.29 Liberalizationand Deregulation Achievements. The program of liberalization and deregulationagreed upon under the TSAIP has been implementedwith positive results. The CTI was liquidated in April 1989, thus eliminatingthe monopolyon freight allocation. All road transport tariffs and freight allocationswere liberalizedin November1990. Truckers and shippers are now free to enter into private negotiationto determineshipping contract terms, conditionsand prices. Since certain vested interests continue to try to undermine the liberalizationprocess, it will be important in the proposed project to includeassurances from the Governmentthat they will not take any steps that might tend to underminethe remarkable progress that has been achieved (see para. 4.7).
2.30 DevelopmentAchievements. Improvedroads and the liberalizationof the transportsector have resulted in an average 30% reductionof transport rates (not just costs). The followingtable shows how these reduced transport rates translate into savings for consumers:
Cost in CFAF N'Djamena AbWeh Moundou Millet Cement Millet Cement Millet Cement 100 kg 50 kg 100 kg 50 kg 100 kg 50 kg 1989 7400 3250 9000 3800 8000 3800 1991 6200 3100 4500 3500 4000 3200 1992 4500 3000 4000 3250 3000 3000 11
2.31 Achievementsin Privatization. The privatizationprocess made progress in some areas, although delays occurred concerning private sector involvement in road maintenance activities. Privatizationof the Mani quarry operationwas completedin December 1989. All periodic maintenance and rehabilitation works, because of their size and complexity, are currently carried out by private expatriate contractors. OFNAR has proved reluctant to put routine maintenanceworks--that could be carried out by local contractors--outto bid, preferring to keep them for its own maintenancebrigades. Research work has confirmedthat there are small Chadian firms with the capacity to carry out certain works such as pothole filling, ditch cleaning and small bridge construction. Three pilot projects demonstrated that local contractors were able to respond to simplified and standardized bidding procedures. Consequently,measures will be introducedunder the proposed project to prevent OFNAR from blocking future progress in the area and to ensure that a growing proportionof routine maintenance is entrustedto the privatesector (see paras. 4.13-16 and 4.22-24). The emergencyfood aid vehiclefleet, which was being operatedby Governmenton an unfair competitivebasis, has been disbanded and sold at an auctionto private sector operators.
2.32 In contrast, one extremely successfulprivatization operation is the AutonomousRoad Brigade which became fully operational as a private public works company (EntrepriseTchadienne des TravauxPublics) on January 1, 1993.
2.33 The autonomousbrigade was constitutedin 1990 when bids were launchedto rehabilitate 300 km of earth roads in the Guera region in the center of the country. Five offers were received from expatriatefirms, the lowestof which was twice as high as the project cost estimate. The analysisof the offers showed clearly that the contractors were trying to cover the costs of potential risks of war by adding an amortizationmargin to their estimates, resulting in a cost/km of CFAF 50 million. It was decided, therefore, to cancelthe bids and to create an autonomousbrigade (detachedfrom OFNAR)with its own budget covering all operatingcosts includingstaff salaries, equipmentamortization and technical assistance. The works were completedin two years under the supervisionof a German consultingfirm. Tlheaverage cost/km of the road constructioncame to 23 million CFAF/km (10% below the consultant estimates and 54% below the private contractors' offers). The quality of the works performed and the ability of the brigade to perform adequatelyin difficultconditions, made it relativelyeasy to privatizethe brigade and to find a large number of private Chadian partners. The equity of 200 million CFAF has been fully subscribed(47% by individualprivate Chadians, 23% by the staff of the company, 10% by a private commercialbank, 10% by an expatriatefirm and 10% by OFNAR.) It is worth mentioningthat no civil servant is among the shareholders. The privatizationof this brigade is a perfect illustrationof what can be achieved if private initiative is protected from government interference. It is serving as a model for the privatizationof OFNAR, the first steps of which will be carried out under the proposed project (see paras. 4.13-15).
2.34 The institution-buildingcomponentrelated to transportpublic sector organizationwas well executedwith reasonableperformance by the consultants,many of whom were serving, by design, in line positions. However, the capacity-buildinghas been uneven. While managementskills improvedvisibly in accountingand procurement, the Chadians are still relying heavily on expatriate technical assistance for planning, programmingand works supervisionactivities. Part of the explanationis that there are not enough staff well-trained to occupy all the key positions and Chadians have had to rely on technical assistanceto overcomethese shortcomings. The problem is compoundedby a high turnover of high level staff and frequent cabinet reshuffles which affected the sector, both of which have disrupted training efforts. Despite these constraints, the key positions in the Ministry as well as in OFNAR are held by 12 staff with good technicalqualifications both at central and regional levels. It is hoped that such staff will remain in the Civil Service in spite of its limited possibilitiesfor advancement,low salaries and erratic salary payments. Under the proposed project, in-houseresident technicalassistance will be substantially reduced in favor of more short term assistancein order to allow (and to oblige) competent Chadiansto express their talent, instead of being tempted to hand over their responsibilities(see para. 4.30).
2.35 Air Tchad Restructuring Achievements. The rehabilitation of Air Tchad is not yet completed. The original objectives, set out in an Action Plan, aimed at (a) providing for Government to compensateAir Tchad for losses incurred in supplyingexclusive transport to isolated areas and (b) adopting a set of targets designedto reduce Air Tchad operating costs and increase its autonomy from governmentinterference. Neither Governmentnor Air Tchad managedto comply with the Action Plan and Air Tchad began experiencingrenewed financial difficulties. After discussionswith IDA, a new managementteam, established in August 1992, introduced a number of changes, including reduced managementsalaries, which are starting to reverse the trend. The new teamnalso initiatednegotiations for a management contract with an external airline company. Since the company appears to be fundamentallysalvageable, IDA has agreed to the establishmentof a new Performance Plan for the companyfor the period 1994-1996. This PerformancePlan will be closely monitoredunder the proposed project (see para. 4.19).
D. LessonsLearned and Remaining Sectoral Issues
2.36 The most importantlesson learned is the value of an integratedpackage of policy reforms and investments(it permits the achievementof more substantialbenefits than pursuing the two agendas separately). It also keeps the focus on the broad sectoraland developmentobjectives, particularlywhere economicministries like Planningand Finance are concerned. With non-integratedprojects, the debate is often relegated to the technicalministries that have neither the competencenor the interest to resolve critical issues related to sector financingand strategic policy setting on issues such as privatization. In this case, the economic ministries were represented actively on the TSAIP interministerialsteering committeeand participatedactively in broad-rangingdebates on issues that linked the sectoral objectives to macro-economicpolicy. This approach will be continued in the proposed project.
2.37 In addition, an important lesson was learned regarding the long-term sustainabilityof transport sector developmentand the need to focus on the precise mechanicsof resource allocation. A generic agreementon a dollar allocationto the sector is not enough. Real progress depends on a good understanding of the tasks of the Minister of Finance and on careful managementof the resource allocationprocess (at least in the short-term) to ensure that good habits are developed. The TSAIP supervisioneffort has focused on these issues and, despite the country's severe financial difficulties, the sector has been reasonably well insulatedfrom the financial problems that have plagued other sectors. The challenge under the proposed project will be to consolidate these habits and to establish the embryonicsystems as permanent,fully internalized,reliable, sector-fundinginstruments (see para. 4.6).
2.38 Finally, we learnedthat greater private sector involvementrequires a more fundamental mentalrevolution than was first thought. Civil servantssimply cannot be expectedto promote the private sector. What is required is a judicious combinationof capacity-buildingbased on reorganizationand restructuringof the public administrationto perform more efficientlyby using private managementtools and methods in utilizing financial and human resources, and capacity-tappingthrough greater private sector involvementin public works constructionprograms as well as in transport services. The whole 13 process of planning,bidding, contracting,supervision and paymentshas to be rethoughtfrom the ground up. The proposed project will take up the unfinishedagenda of the TSAIP regarding institutionbuilding and private sector involvementin an attempt to undertake this revolution through streamlined public institutions, procedures and practices, and greater self-reliance among civil servants, combined with contractingout of as much as possible of design, supervisionand constructiontasks to take maximum advantageof private sector talent (see paras. 4.9-4.12, and 4.22-4.24).
2.39 The TSAIP did not explicitlyaddress issues of the environmentsince the vast majority of the project was aimed at rehabilitating and maintaining existing infrastructure with negligible environmentalimpacts. In addition,the weaknessof the administrationwas construedas an impediment to establishingany kind of environmentalmanagement capacity. Since some improvementshave been made in sectoral administration,it is now believedthat the time has come to begin to develop a basic transport sector environmental program, which will focus on the establishment of a system of environmentalassessments. The assessmentswould be carried out by the private sector, but the Ministry of Public Works and Transportwould have to develop the capacityto managethe process and to interpret the results. In addition, based on sector work results produced in the Sahel Department,the Ministry would begin to introduce into its bidding documents and constructioncontracts clauses relating to the environmentalcorrectness of designsand on environmentalprotection and conservationmeasures to be adopted during and after construction. Finally, the Ministry would carry out pilot projects to test the feasibilityof incorporatingsmall water retention schemes (mini-dams)into road design (see also para. 4.26).
2.40 A final, but essential element of the proposed project, designed to counterbalancethe land-lockedconditions of Chad, is a RegionalIntegration Program which will improve the regionalroutes between Chad and Cameroon in particular, thereby facilitating transit operations through international transport corridors (see para. 4.274.29).
III. RATIONALEFOR IDA INVOLVEMENT
3.1 A major objectiveof IDA's strategy in supportingGovernment's economicstabilization process is to encourageit to maintainsound nationalinvestment policies and improve its competitiveness in regional markets by reducing the cost of production inputs and outputs. Transportationhas been at the core of IDA's strategy over the past six years and road maintenanceis still part of the core program along with education and health. The proposed project supports these objectives, particularly those related to private sector development,employment creation, and poverty alleviation.Furthermore, the implementationof a set of sector policy actions and a comprehensiveinfrastructure rehabilitationand maintenanceprogram have already improvedinternal and external exchanges. Expandingand improving both is essentialto achieve economicgrowth. IDA's interventionwould also help the Governmentto coordinate and channel donor support to those activitiesthat would contributeto a well-managedand - maintainedroad network.
3.2 In addition,IDA's extensivecountry experienceas well as its managementexperience in the Sahelianregion continuesto contributesubstantially to its successfulleadership in coordinatingdonor interventions. 14 IV. THE PROPOSEDSECOND TRANSPORT SECTOR INVESTMENT PROJECT
A. Project Objectives
4.1 The main development objectives of the proposed project are: (a) to help stimulate industrialand agriculturaldevelopment and regionaltrade throughconsolidated improvements in transport sector efficiency focussing on continuedreductions in vehicle operating costs and improvementin the efficiencyof the transport market; (b) to continueto improvepublic investmentefficiency, transparency and budgetary management;(c) to improve internal resource mobilizationto meet the long-term need for routine road maintenance;(d) to promote private sector involvementin road maintenanceand strengthen the road transport industry; and (e) to streamline and continue to improve public administrationof the sector. To achieve these objectives, the proposed Second Transport Sector Project (TSP II) would implement: (a) the consolidationagenda to ensure that the positive achievementsunder TSAIP are maintained,(b) the continuingagenda of sectoral objectives that were only partially met under TSAIP and (c) the evolving agenda to address newly introducedlong-term issues for the transport sector. In summary, the content of the agendas is as follows:
ConsolidatlionAgenda: investmentplanning road maintenance resource mobilizationand allocation liberalizationand deregulation
ContinuingAgenda institutionbuilding private sector involvement
Evolving Agenda secondaryagricultural road rehabilitation environment regional integrationand tradefacilitation
In line with the lesson learned that an integrated strategy encompassingpolicy reforms and physical interventions is essential for sustainability, the project description presented below sets out in an integrated manner the programs of policy objectives and the institutionalmeasures and the physical supportinginvestment components for each agenda item.
B. Project Description
The ConsolidationAgenda
4.2 Sector Investment Planning Program. Under the TSAIP, the Government adopted a transport sector strategy that includedthe followingcommitments:
(a) Governmentwould allocate priority in road expenditureto coveringthe full cost of routine maintenanceof the priority network. In addition, Governmentwould also allocate adequate resourcesto cover the operating costs of the Directorate of Roads which is the key agency to implementthe program. 15 (b) Governmentwould includein the Road InvestmentProgram for the 1994-1998 period only the 3,800 km priority main road network and the 960 km secondary agriculturalroads network and would only includeroads that were demonstrated to be economicallyjustifiable; and
(c) Government would open execution not only of periodic, but also of routine maintenance, works to private contractors, including small and medium scale local firms.
These commitmentsare reiterated in the Letter of Transport Sector Policy that was presented to the donors in November 1992 (attached as Annex 5). During negotiations,Government gave assurances that it will continueto apply these principlesthroughout the life of the TSP II (para. 7.2(b)); i.e., (a) that it will only rehabilitatethe roads identified under the Road InvestmentProgram, and any other roads meeting a 12% economic rate of return, and (b) will apply the alignment, design and construction standardsacceptable to the Association(see para. 7.2(m)). During negotiations, Governmentconfirmed its intentionnot to undertake any investmentor acquisitionof transport equipment above an aggregate amountof CFAF 200 million annuallythat are not includedin the InvestmentProgram without the prior consent of IDA (para. 7.2(c)).
4.3 Road Maintenance and Rehabilitation Program. The major physical investment componentof the TSP II for the five year period (1994-98)would be a program of routine and periodic maintenanceaimed at keepingthe priority main and secondaryagricultural network (a total of 4,760 km) in adequatecondition to handle traffic. Since previousprojects focussedon the rehabilitationof the main priority road network, the program under the TSP II will ensure:
(a) the routine and periodic maintenance (including bridge strengthening)of the already rehabilitatedsections of the 3800 km main priority network;
(b) the routine and periodic maintenance of 960 km of secondary roads with agriculturalpotential, includingcotton feeder roads; and
(c) a bridge rehabilitationand maintenanceprogram.
The works will be carried out on the basis of adequateroad design standardswhich, given soil conditions and traffic and the scarcityof resourcesfor future road maintenance,have been chosento require a higher initial investmentbut aim at reducing future maintenancecosts. The road links to be rehabilitatedand the correspondingstandards are listed in Annex 8. During negotiations, Government confirmed its intention to continue to employ alignment and construction standards and designs acceptable to the Association(para. 7.2(m).
4.4 The Road Maintenance(routine andperiodic) Component which will supportthis program is summarizedin the table below: 16
Priority Main Network Secondary roads km of roads 1994 1995 1996 1997 1998 1994 1995 1996 1997 1998 Periodic 703 304 328 280 260 140 120 100 60 40 Maintenance Routine 3097 3496 3472 3520 3540 820 840 860 900 920 Maintenance _ Total 3800 3800 3800 3800 3800 960 960 960 960 960
In addition, the project will support the rehabilitationof 300 km out of the 960 km secondarypriority road networkwith agriculturalpotential. This rehabilitationsubcomponent includes three roads intended to open up the high potential Salamat agricultural region to urban markets in the North (Abeche), Northeast(N'Djamena) and South (Sahr, Moundou, Guelengdeng)of the country.
4.5 Resource Mobilization and Allocation Program. As in the case of the TSAIP, one importantobjective of the TSP II is that rehabilitatedroads shouldnot fall back into disrepair. The large amount of financingrequired for the road rehabilitationprogram is only justifiable if the rehabilitated roads are adequately maintainedduring their lifetime. In this respect, financialresource mobilizationis crucial. The Governmentwas able to complywith routine maintenancerequirements of the road network until 1991, but in fiscal year 1992, only 70% of the required funds were allocated. To its credit, despite this shortage, Chad still remains the best performer in routine maintenanceresources mobilizationof all other African countries, particularlyof the Sahelian countries. Nonetheless, increasingfiscal revenues and strengtheningfinancial managementis essential to ensure that the road maintenanceprogram is adequatelyfinanced on a sustainablelong-term basis.
4.6 To ensure adequate funding for road maintenance and counterpart funding, the Governmentagreed during negotiations to allocate CFAF 1,800 million for FY94, including CFAF 1,300 million for routine maintenanceand 115 million for the Directorate of Roads operating budget, CFAF 2,000 million for FY95 includingCFAF 1,500 million for routine maintenanceand CFAF 120 million for the Directorate of Roads operatingbudget, CFAF 2,200 million for FY96 includingCFAF 1,700 million for routine maintenanceand CFAF 125 million for the Directorate of Roads operating budget. CFAF 2,400 million for FY97 includingCFAF 1,900 millionfor routine maintenanceand CFAF 130 millionfor the Directorateof Roads operatingbudget, and CFAF 2,600 million for FY98 including CFAF 2,100 million for routine maintenance and CFAF 135 million for the Directorate of Roads operatingbudget (para 7.2 (a). These sums will be raised through freight taxes, petroleumtaxation and tolls on ferries and bridges. To ensure these funds are made availablefor road maintenancein a timely manner, it has been agreed, as an interim measure and in consultationwith the IMF, to create in a commercialbank the Compte autonomed'entretien routier (CAER), an autonomousaccount for road maintenance. Duringnegotiations, agreementwas reachedthat CAERwill be createdby instrumentand with operatingprocedures satisfactory to IDA and that CAERwill be establishedin a commercialbank for which withdrawalshall be made exclusivelyby MTPT for the paymentof rehabilitationworks, road maintenanceworks of the priority road networkand operatingbudget of the Directorateof Roads (para. 7.2(d)). In addition,it was agreed that CAERwill operate in conformitywith such operatingprocedures during the preceding two monthsbefore effectiveness(para 7.3(g)). This account will be auditedon a 17 quarterlybasis (para. 5.13). The road maintenanceaccount will receive directly, and on a monthly basis, proceeds generatedby freight taxes collectedby BNF, ferry and bridge tolls, and the current share (19.5%) of petroleum taxes. The allocationswill be as follows:
Allocation Ferries N'Gueli bridge Freight Petroleum Total Monthly Million CFAF taxes taxes Allocation 1993 50 240 570 640 1500 130 1994 50 250 600 900 1800 150 1995 50 260 630 1060 2000 165 1996 50 280 660 1310 2200 180 1997 50 300 700 1450 2400 200 1998 50 300 700 1550 2600 215
The system of monthly allocations was initiated in November 1992 and the November and December 1992 allocations were made satisfactorily. Despite some difficulties resulting from the operating mechanismsfor the autonomousaccount, allocationshave also been made for the first five monthsof 1993. During negotiations,agreement was reachedon the monthly allocations(as indicatedabove) to be deposited into the AutonomousAccount for Road Maintenance(CAER) (para. 7.2(e)). An annual technicaland financialreview will be conductedto ensure that the amountsallocated during the previous year were actually spent in accordancewith the agreement above. It is worth noting that the average yearly allocationfor road maintenanceover the period 1994-98 represents only 3.4% of the General ExpendituresBudget of Chad for FY92, consideredto be a bad year for revenue collection.
4.7 LUberalizationandDeregulationProgram. The liberalizationandderegulation agenda was completedunder TSAIP. The agenda under TSP II is to ensure (a) that the achievementsof TSAIP not be eroded and (b) that the operations and managementof the Bureau National de Fret (BNF) be improved. BNF will be provided technicalassistance to support it in carrying out its missionsof road transport informationbroker and fiscal collection. The importantmissions of the BNF are as follows:
(a) to serve as an informationcenter on supply and demandof transport capacityfor both users of transport (shippers) and transport operators (truckers);
(b) to monitorthe share of freight carried by national and regional operators under bilateral agreements;
(c) to ensure the timely, efficient, and transparentcollection of revenues related to the Lettre de Voiture Obligatoire(LVO);
(d) to gather statisticson freight transport; and
(e) to providethe autonomousaccount for road maintenance(CAER) with revenues collectedfrom freight taxes. 18 During negotiations,Government gave assurancesthat it will continueits policy to keep road transport tariffs free, freight allocationsunregulated, and other basic shipping contract terms unregulated.
The ContinuingAgenda
4.8 Institution-BuildingProgram. One of the most important objectivesof the TSP II is to continue to improve institutionalstrengthening actions started under the previous transport projects. Particularattention will be given to managementissues and capacity-buildingto strengthen Government's capacity to devise and implement appropriate transport sector policies and to plan and manage the developmentof transport infrastructureand services. The project will assist the Governmentthrough technicalassistance, training, and consultingservices (a) to increasethe efficiencyof the MTPT and its Directorates in the area of planning, programming and road maintenance works supervision, (b) to restructureOFNAR into a Societf Nationale, and (c) to complete the restructuringof Air Tchad.
4.9 Improvementsto MTPT--RoadMaintenance. Institutionalmanagement and development aimed at focussingon policy reforms to ensure that road rehabilitationis managedeffectively on a long- term basis by institutional strengthening, restructuring and broadening of ownership of transport parastatalsdirected toward short-term improvementsand then the establishmentof realistic strategiesfor diversifying ownership or privatizing them in the medium-term. This has involved a fundamental rethinking of all the agencies under MTPT tutelage and a redefinition of their respective roles, particularlyvis-a-vis the private sector, resultingin a new approach to maintenanceworks executionand profound changes in the regulatoryframework and philosophygoverning sector activities.
4.10 For routine road maintenance, GOC has always relied on force account for the implementationof its road maintenanceprograms. Despite considerablesupport from IDA and other donors to improve the Road Authority (OFNAR)and the MTPT institutionalcapacity to program and execute these works, problems remain: frequent rotations of trained staff out of the programs; cumbersomeadministrative procedures that hinder timely availability of all required inputs for work execution difficult to achieve; and commandeeringof public works equipment and personnel for non- programmedworks.
4.11 The TSP II would adopt a new approach to these issues based on (a) strengtheningthe capacityof the Directorateof Roads to carry out the normativetasks of planning and programmingannual maintenanceinterventions, and for managingand supervisingworks carried out by contractors; (b) the restructuringof OFNARto de-emphasizeits role in the executionof road maintenanceby force account. Under this approach, the Directorate of Roads would operate more like a contract manager, identifying the roads to be maintained,and the maintenancestandards, elaboratingthe detailed engineeringdocuments and biddingdocuments (with increasing participation by local consultants),managing the bidding process, and supervisingthe works (again with increasingreliance on local consultants). In effect, the directorate would operate as a streamlined contract manager along the lines of the 'AGETIP"1 ' agencies. In addition, the road managementunit establishedwithin the Directorate of Roads will monitor closely the evolutionof the road network, particularly the enforcementof rain barriers regulation and the truck overloadingissue in order to minimizeits negativeimpact on the road network. While this issue is not yet a serious problem in Chad, the road managementunit will providedata collectionand analysis which will be discussed at the mid-term review in order to assess the actions which need to be taken.
AGETIP: Agenced'ex6cution de travauxd'ist&rft public. 19 4.12 An institutionalreorganization of MTPT would also be carried out with the aim of clarifyingthe responsibilitieswithin and betweenthe various entities concerned. A draft new organigram and cahier des charges for MTPT and its agencies were submitted at negotiations (para. 7.1(a)). During negotiations, Governmentconfirmed its commitmentto appoint and maintain high level staff (with qualificationsand experienceacceptable to IDA) to head the main Directorates in the Ministryof Public Works and Transport and entities under its tutelage (para. 7.2(f)).
4.13 Restructuringof OFNAR. The project will restructure OFNAR into the 'National Road MaintenanceCompany" (SNER), a Government-ownedcompany (Societe Nationale) operating according to private managementprinciples. SNER would be allocatedno more than 50% of routine maintenance works to be carried out through direct contract with the Directorate of Roads and financed by Governmentcontribution. Although the works would be carried out under what is technically force account, SNER would have to sign a "shadow contract" with MTPT that would set out the obligations of each party. Thus, the works would be supervisedand paid for by the Directorateof Roads in the same manner as works performed by private contractors. This means that SNER will receive payments for actual works performed at a technical standard satisfactory to the supervision team. The "shadow contracts"will be based on unit prices which will includeSNER's operating costs, includingtechnical assistancefees, and equipmentamortization as well as the costs of the works.
4.14 For 1994-1996,SNER willbe allocatedworks for routine maintenancenot exceeding50% of the annual routine maintenancecosts (see paras. 4.23 and 5.3). The creation of SNER will reduce OFNAR's 17 mechanizedbrigades to 11. The equipmentdivision of OFNAR will be managedby SNER as an autonomousprofit center, able to lease the equipmentboth to SNER works brigades as well as to private contractors.
4.15 In the medium-term, at the end of 1996, SNER would, on the basis of its private managementexperience, open its capitalto privateChadians and would bid for routine maintenanceworks on a competitivebasis with other private contractors. In the short-term, should SNER wish to participate in periodic maintenance or road rehabilitation, it would have to enter into the bidding process in competitionwith private sector firms.
4.16 A draft statutes and proceduresmanual for SNER were submitted at negotiations (para. 7.1 (b)). It was also agreed as a condition of effectiveness: (a) the adoption of a dissolutionplan to terminatethe operations of OFNAR; (b) the adoption of the new organigram and "cahier des charges" for MTPT; (c) the adoptionof a new statutes and procedures manualfor SNER; and (d) the appointment of a General Manager, a TechnicalDirector, a Financial Director, and a ManagementComptroller for SNER (para. 7.3(c),(d),(e) and (f)).
4.17 While SNER would benefit from limitedtechnical assistance, this would not be financed under the project. SNER as an independententity has to cover all of its costs out of the proceeds of the "shadowcontracts" that it would sign with the MTPT. The practical result of this decision will be to dramaticallyreduce SNER's demand for technical assistance, thereby promotinggreater responsibility and self-reliance.
4.18 Finally, effective project implementationunder TSAIP has been largely assured by the strong performanceof the Project CoordinationUnit and the InterministerialSteering Committee. The InterministerialSteering Committeechaired by the Minister of Planning and comprisingthe Ministerof Finance, the Ministerof Transport and Public Works, and the Secretary General of the Govermmentand 20 SecretaryGeneral at the Presidency was very effective in dealing with all political decisions related to the implementationof the ongoing TSAIP. During the preparationof the TSP II, the heavy involvement of this steering committeewas instrumentalin buildingownership of the reforms to be undertakenand in re-enforcingGovernment commitment to creating an atmospherefavorable to good implementationof the project. To ensure that this progress continues, Governmentconfirmed, during negotiations,its commitmentto maintainthe Project CoordinationUnit headed by a qualifiedtechnician whose experience is acceptableto IDA and to maintain the InterministerialSteering Committee(para. 7.2(g)).
4.19 Restructuringof Air Tchad. The NationalAirline Company,Air Tchad, has been under restructuringsince 1990. This restructuring,which shouldhave been completedby December31, 1992, was designedto enable Air Tchad to become autonomousand more efficient by adoptingprivate sector managementmethods through a managementcontract with another airline. Despite the fact that the completionof the restructuringof the company was delayed mainly due to the non-observanceof the requirements of the "Contrat-plan" both by Chadian government and Air Tchad managerial team, considerableefforts have been made by the new managementteam since September 1992to reduce the financialdeficit by adoptinginternal austerity measures (staff and salary reductions, loweroperating costs, renegotiationof commercialcontracts). In early March 1993, discussions for a managementcontract started betweenAir Tchad and an external airline company. During negotiations,it was agreed that a managementcontract between Air Tchad and an external airline company will be signed no later than December 31, 1993 (para. 7.2(h)). A new performanceplan for Air Tchad will be agreed upon and signedas a conditionof effectiveness(para. 7.3(a)). The new performanceplan is expectedto guarantee Air Tchad managementautonomy and the managementcontract with an external airline company is expectedto make Air Tchad managementmore efficient. By December 1993, the companyshould find itself in financialequilibrium. Since Air Tchad is supposedto be developingfinancial independence,no technicalassistance to Air Tchad would be financedunder the proposed project.
4.20 The National Soils Laboratory (LNBTP), which has already been given the statute of privately-managedagency, will participateon a contract basis in all geotechnicalresearch and studies, soil testing and civil supervision, and in the defining of road and building constructionstandards. A reorganizationto enable LNBTP to function effectively as a privately managed agency is currently underwaywith the financingof the French DevelopmentAgency (CFD).
4.21 Under the TSP II, a road research program will be developed in collaborationwith LNBTP. This research program aims at optimizingthe road constructionstandards and appropriateroad materials to be used for the road rehabilitationprogram, taking into account the lessons learned from previousconstruction programs. The research programwill also seek optimalsolutions for shouldersand slopes stabilization in relation with the environmentalprotection program. During negotiations, assuranceswere given that a contract will be signed between LNBTP and the Directorate of Roads for the executionof the research program, on agreed TORs and the implementationschedule (para. 7.2(i)).
4.22 IncreasedRole of the PrivateSector in Road Maintenance. Chad's domesticconstruction industryis very limited in size and scope and includes only about ten contractors with real experience, mainly in building construction. Nonetheless,experience elsewhere has shown that such an industry developsrapidly when the demand is present. One of the objectivesof the TSAIP was to reduce the cost of road construction and maintenanceby using more of the private sector in the rehabilitation and maintenanceactivities. 21 4.23 The Road ReconstructionProject and the TSAIP were successful in promoting more extensiveinternational competitive bidding for road rehabilitationand periodic maintenanceleading to substantialreductions in the cost/km of road construction. However, private contracting for routine maintenancefell short of the targets because of OFNAR's unwillingnessto share the works with the private sector. In retrospect, it was in fact unrealistic to expect the agency responsible for the programmingand the executionof routine road maintenanceactivities and the control of all the financial resources allocatedfor road maintenanceto voluntarilyrelinquish control of its prerogatives. In light of this, the TSP II will reinstate contract awardprerogatives in the Directorate of Roads, on conditionthat at least 50% of which will go to the private sector. During negotiations,Government confirmed its intention to contract out no less than 50% of routine maintenance activities to the private sector in accordancewith competitiveprocedures, and beginningJanuary 1, 1997 not provide any preference to SNER relative to the domestic private sector in the contracting of routine maintenanceworks (para. 7.2(j)), to pay all amounts due to private sector contractors within 60 days of their due date and to establish a monitoringsystem to track due dates and payment dates (para. 7.2(k)).
4.24 A survey of local constructionfirms has confirmedthat the capacity exists or can be developedin Chad--especiallyin the N'Djamena area--to carry out the works that are required. Sample simplified bidding documents and standard contracts have been prepared on the basis of three pilot projects that tested local entrepreneurscapacity to respond to call for bids. The establishmentof the CAER will also allow the Ministry to make payments to entrepreneurson a timely basis, since this has been shown elsewhere to be a critical element in developinga strong local constructionindustry. In addition,the establishmentwithin SNER of an equipmentleasing functionwill permit small entrepreneurs to participatein small contracts and develop their capabilitieswithout the need for heavy investmentsin the early stages. Should firms choose to invest, however, credit and technical assistanceare available from the non-governmentalorganization VITA, financed under the Social Dimensions of Adjustment Project (Cr. 1872-CD). The proposed project would complement this technical assistance with constructionindustry-specific training and assistancetailored to the constructionindustry. The technical assistance and training program will focus on management of private firms and accounting and procurement. During negotiations, agreement was reached on the technical assistance and training program for the private contractors(para. 7.2(1)).
The EvolvingAgenda
4.25 Secondary agricultural road rehabilitation program. Since previous projects focussed on the rehabilitationof the main priority road network, the program under the TSP II will extend this main priority network to include a rehabilitation of a priority secondary network designed to link agriculturalproduction areas to the main centers of consumptionvia the priority main network. The secondary road rehabilitationfor the 1994-98 time slice would consist of 300 km (mainly the Salamat region) out of the total 960 km of priority secondary road network rehabilitationprogram.
4.26 Environment. The TSAIP did not explicitlyaddress issues of the environmentsince the vast majority of the project was aimed at rehabilitating and maintaining existing infrastructure with negligibleenvironmental impacts. In addition, the weakness of the administrationwas construed as an impedimentto establishingany kind of environmentalmanagement capacity. Since some improvements have been made in sectoral administration,it is now believed that the time has come to begin to develop a basic transport sector environmentalprogram. It will focus on the capacityto put in place a systemof 22 environmentalassessments. The assessmentswould be carried out by the private sector, but the Ministry would have to develop the capacityto managethe process and to interpret the results. In addition, based on World Bank sector work, the Ministry would begin to introduce into its bidding documents and constructioncontracts clauses relating to the environmentalcorrectness of designs and on environmental protectionand conservationmeasures to be adopted during and after construction. Finally, the Ministry would carry out pilot projects to test the feasibilityof incorporatingsmall water retentionschemes (mini- dams) into road design.
4.27 Transit Facilitationand Regional Integration. The proposed project will support the developmentof a Regional Integration Program expected to set up customs and insurance-coverage measures and procedures which will:
* simplify procedures and transit documents related to transport, customs clearance, and trade in conformitywith regionally (UDEAC)or internationally (ICC and UNEDIFACT)harmonized rules;
* redefine and strengthen civil and commercialresponsibilities of road transport operators and transit companies in order to streamline international transport operations;
* simplify insurance procedures in order to improve the competitivenessof the regional transport corridors;
* encouragethe creation of private freight bureaus in Cameroon and Chad;
e promote the groupingof individualtruckers in order to ensure financialviability and credibility; and
* redefinethe role of the Chamber of Commerce to limit negative interference.
The RegionalIntegration Program will be supportedby the constructionof a freight interchangecenter in N'Djamena financedby CFD.
4.28 This strategy and plan of actionhave been developedspecifically for Chad but fall within the broader objectivesof regional road transport industrydevelopment. With the proposed introduction of the TIPAC (Transit Internationaldes Pays de l'Afrique Centrale) followingthe joint ECC (European Community Commission), World Bank initiative of UDEAC regional integration, the road transport industryin Chad shouldundergo substantial improvement if it is to remain competitivewithin the region. The strategy proposedfor the TSP and the plan of action encompassassistance to both the road transport industry and to the institutionsresponsible for transport operations.
4.29 The Plan of Action aims at improving road transport by combining the Government commitmentto provide better transport services with the interest of the private sector operators; the proposedplan of action will be monitoredthrough measurableindicators proposed in a matrix shown in Annex 6. IDA will finance technicalassistance through BNF and MTPTto assist the developmentof the RegionalIntegration Program. 23 4.30 TechnicalAssistance and Training Component. The technical assistance program was designedby taking into accountthe lesson learnedfrom previousprojects. As shown in the graph below, the technicalassistance program under this projecthas been considerablyreduced in comparisonwith the previous project. The focus will be on short-term rather than long-term assistance. Furthermore, in order to increase Chadian self-reliance,technical assistance in line positions will be discontinuedand the project will encourage spot advisory assistance to managerial positions as well as for the planning, budgeting and procurementunits. This technicalassistance program will support both public and private sectors. The proposed project would financetechnical assistance for the following agencies:
1. Project CoordinationUnit (PCU): 30 man/monthsfor Project coordinationand sector policy monitoring;
2. General Directoratefor Public Works and Transports: 23 man/monthsfor procurement issues, policy formulation and accounting. An additional 50 man/months will be provided to assist emerging private contractors in management, accounting and works execution;
3. Directorate of Roads: 85 man/monthsfor long-termand short-term assistancein the area of investment planning, maintenance works supervision, technical studies and road research and environmentalissues;
4. BNF: 2 man/monthsfor managementand accounting.
The program totalling 190 man/monthsis estimated at about US$4.1 million. In addition, consulting services will be provided for civil works supervisionfor an amount totallingUS$2.1 million.
Second TransDort Sector Proiect 120 Manxmonth Technical assistance to MTPT
100 * PublicWorks (Directorste of Roads, 80 OFNAR& Procurmentunit * Transport & Civil aviation
60 E Proj. Coord. Unit
40
20
0 1990 1991 1992 1993 1994 1995 1996 1997 1998 24 4.31 The training programof the proposed projectwill pursue the objectivesset out under the TSAIP, with an emphasis on disseminationof private sector managementpractices, human resource management,and improvementof sector planningskills. The program will consist of: (a) 13 seminars and 33 training courses for public sector staff; and (b) 36 seminars and 5 training courses for private sector staff. The training program will amountto US$2.3 million. This program will be implemented over a three year period (1994-96). A condition of effectiveness will be the adoption of a training program for 1994 satisfactoryto IDA (para 7.3 (h)).
4.32 The trainingprogram developmentfor publicsector staff main moduleshas already been establishedunder the previous TSAIP. For the private sector, the training module will have to be establishedand agreed upon with IDA no later than December 31, 1993. The training program and schedule is containedin Annex 10. It will be implementedand coordinatedby the Ecole Nationaledes TravauxPublics (ENTP) and the Centre de Perfectionnementdes 7ravauxPublics (CTPT) supportedby a technicalassistance team.
C. Project Costs and Financing
4.33 The three agendasunder the proposedproject wouldbe supportedby (a) a physical works component,comprising: (i) a program of periodicand routine road maintenanceand bridge strengthening on the existingpriority main road networkof 3,800 kin, plus routine and periodic maintenanceon a 960 km secondaryagricultural road network;(ii) a rehabilitationprogram of about 300 km of secondaryroads crucial for the linkagebetween regions of agriculturalpotential (Salamat region) and main consumption centers; and (b) a program of institutionalstrenethening comprising : (i) consultingservices for civil works design and supervision,soil research studies and testing, and technicaland financial audits; (ii) consultingservices to promoteprivate entrepreneurshipfor smalland mediumconstruction contractors and smalltruckers; (iii) technicalassistance and training (mainlyshort-term consultancies)for transport sector institutions (Directorate of Roads, Air Tchad, BNF, Directorates of Civil Aviation and Land Transport, the Project CoordinationUnit); (iv) support the implementationof a regional integration action plan aiming at facilitating Chadian international trade for road and air transport; and (v) implementationof a transport sector environmentalplan.
4.34 The table below summarizesthe estimated project costs. A detailed cost table is found in Annex 2. During appraisal, the scope of the project was reduced to be in line with the core lending program and the total external and internal financingavailable for the sector. Total project cost, net of taxes and duties for the overall five year program is estimatedat US$121.4million equivalent, including a foreign exchangecomponent equivalent to US$84.1 million, and a local cost componentof US$37.3 millionequivalent. During negotiations the cost estimateswere conrirmed by the Government(para. 7.2(n)).
4.35 Costestimates are basedon unit prices gatheredfrom recent data on civil workscontracts for rehabilitation, periodic and routine maintenanceunder ongoing projects in Chad and neighboring countries. Given the specific nature of these estimates, physical contingencieshave been set at 10%, which is adequatefor the types of works to be performed.
4.36 The technicalassistance cost estimatesare based on recent rates for consultingservices in the region which amount to US$14,000per man-month. 25
SummaryProject Cost Estimate and Financing Plan (Net of Taxes and Duties)
______US$ Million Project Components | ______lForeign Local Total A. Physical Component 1. InvestmentCosts - Civil works (a) Rehabilitation 30.2 1.8 32.0 (b) Periodic maintenance 21.6 5.1 26.7 (c) Bridges 1.4 1.4 (d) N'DjamenaInterchange bldg 3.4 3.4 2. Recurrent Costs (a) Routine Maintenance 3.9 25.4 29.3 B. InstitutionalStrengthening Component 1. Consultantsservices for Public Works (a) Studies and works supervision 3.4 3.4 (b) Technical assistance 2.9 2.9 (c) Audits and Proj. Coord. Unit 1.6 1.6 2. Consultantsservices for Transport and Civil Aviation (a) Studiesand supervision 0.3 0.3 (b) Technicalassistance 0.6 0.6 3. Training and scholarship 3.55 3.55 4. OperatingCosts (PCU) 0.7 0.5 1.2 C. Contingencies 1. Physicalcontingencies 5.9 2.2 8.2 2. Price contingencies 3.4 2.2 5.6 D. RefinancingPPF 1.25 1.25 TOTAL 84.1 373 121.4
4.37 Contingencyallowances for price escalation were calculated according to the planned implementationschedule based on an annual averagerate of 4% for foreign exchangeand of 3% for local costs during 1994/98.
4.38 External financingof the program will amount to US$84.1 million equivalentor 100% of foreign costs with the Governmentfinancing the remainingUS$37.3 million equivalentor 31 % of total costs and 100% of local costs. Governmentfinancing will represent 100% of the routine maintenance costs, 20% of the periodic maintenancecosts, and 5% of the rehabilitationcosts. Followinga Donors' meetingheld in November 1992,external financingis substantiallyassured for the required amount. IDA financing represents US$37.0 million or 30% of the total. IDA financing would be applied to the periodic maintenance and secondary network rehabilitation components and to technical assistance, 26 training and PCU operating costs. Other external financing will be provided by: the European DevelopmentFund (EDF) US$22.0 million equivalentor 20% of the total; French CooperationAgency (CFD) US$4.2 million equivalent; BDEAC US$15.0 million equivalent;OPEC Fund, US$6.0 million equivalent. KuwaitFund, IslamicDevelopment Bank, African DevelopmentBank (AfDB)and BADEA have expressed interest in the road rehabilitation program and the training and technical assistance component. The project activitiesto be financedby IDA are independentfrom other external financing. The financingplan was confirmedduring negotiations in accordancewith the commitmentsmade by the other donors (para. 7.2(o)). Furthermore, the question has been raised as to whether these substantial financingrequirements might in fact be crowdingout donor financingfor social sectorssuch as education and health, where implementationand absorptive capacity may be less developed. Analysis has shown that donor financingfor the social sectors is adequateand that the donors attach high priority to transport sector developmentin Chad.
FinancingPlan
(US$ million equivalent) (Net of taxes and duties)
Local Foreign Total % of total project cost
Government 37.3 - 37.3 31%
IDA - 37.0 37.0 30%
Otherdonors - 47.1 47.1 39% Total projectcost 37.3 84.1 121.4 100%
D. Impact on Environment
4.39 The maintenanceand rehabilitationcomponents of the proposed project would have no significant impact on the environment; the alignments of roads already exist and there is no risk of deforestationor property disturbances. Environmentalconsideration will be an importantcomponent in the design and executionof infrastructureoperations. Measureswill be includedin the terms of reference for detailed engineeringand specifications. The environmentalprotection measures will take into account the geographic specificities of the priority network with respect to geomorphology, hydrology, and climatic conditions. For the existing network, measures will consist of preserving shoulders and providing surface drainage systems, through: (a) protection of the slope of embankment and cuts containing erodible soil, grass seeding, sodding or planting small trees and shrubs; (b) design of main ditches so that the water will be properly channelled and the ditch sector protected against erosion; and (c) improvementof critical parts of road surfaces vulnerable to erosion. In addition to protecting the environment, erosion control measures would have the advantage of reducing maintenance work, especiallyon surface drainagesystems, small structures, and surfaces. While safety is also improvedby suitableshoulder greenery because it improvesdepth perceptionby providingvertical points of reference. Other measureswill consistof clearingditches to evacuatestagnating water, and removing vegetationto limit bush fires along the roads. A detailed environmentalplan for the transport sector is in Annex 5.3. During negotiations,Government confirmed its commitmentto implementthis plan (para. 7.2(p)). 27
V. PROJECTIMPLEMENTATION
A. Status of ProjectPreparation and Readiness
5.1 Detailed project preparation was conducted by technical committees of the Chadian Government with the help of consultants financed under PPF P-722.0 and P-722.1 CD. During the preparationprocess a donor meeting was held in November 1992 to endorse Governmentsector policy statementsand the investmentprogram to be implementedunder the project. Draft legal documents related to all institutionalarrangements (draft statuteof SNER and CAER, draft performanceplan for Air Tchad, organigram of MTPT), procedures manuals for SNER and Directorate of Roads, draft bidding documents,and a road maintenanceexecution program were prepared and are currently being reviewed by IDA. Detailed engineering studies for the reconstruction of secondary roads are underway. Throughoutproject preparation, discussionswere regularlyheld with other donors, particularlywith the European EconomicCommunity (EEC), France, AfDB and OPEC Fund.
B. Implementing Agencies
5.2 The project would be implementedby the Ministry of Public Works and Transport (MTPT) and the autonomousagencies under its tutelage, namely: the new national company SNER to be created; the airline company (Air Tchad); the Soil Laboratory (LNBTP); and the National Freight Bureau (BNF). The role of the Ministry would be redefined to include only planning, programming, budgetingand supervision. The role of SNER operatingunder private sector managementrules would be limitedto executionof maintenanceworks. The role of the private sector in works executionwould be greatly enhanced.
5.3 In light of the promotion of domestic constructionindustry, the SNER involvementin maintenanceworks will be limited to a maximumof 50% of total routine maintenancecosts. During negotiations, agreement was reached to limit SNER activities to a maximum of 50% of total annual routine maintenancecosts for FY94, FY95, and FY96. To facilitate the implementationof the Project, detailed Action Plans related to road maintenance, private sector development, training, regional integration and environment have been set up. During negotiations, Government confirmed its commitmentto carry out the project in accordance with the implementationschedule, supervisionplan, and the Action Plans attached to the Statementof Sector Policy (para. 7.2(r)).
C. Project CoordinationUnit (PCU)
5.4 The PCU, institutedunder the previous project, will continueto coordinatethe various activities within the Government and with donors. This unit will also provide to the implementing agenciestechnical support for all issues related to the procurementprocedures, contracting, accounting, reporting and work supervision. In addition, the PCU would ensure inter-agencycooperation, facilitate the smooth and timely implementationof the project, and provide channels of communication,not only with IDA and the other donors involved in the project, but also with the Interministerial Steering Committeewhich will monitorthe project at a political level. 28 5.5 The PCU wouldbe responsiblefor day-to-daycoordination of projectimplementation and monitoring. More specifically,the PCU would: (a) coordinatethe preparationof annual work programs and budgets for all components;(b) advise the implementingagencies on all procurement matters; (c) prepare the semi-annualand mid-termreviews of the project in relation with the donors; (d) maintainand consolidateall project accountsincluding special accounts;(e) make arrangementsfor the audit of project accounts, SOEs, quarterly audits for CAER and Air Tchad; (f) prepare, as required, progress reports for IDA, the Government and cofinanciers; and (g) maintain effective dialogue with key donors.
D. Monitoring and Evaluation
5.6 The monitoringand evaluationof project performance,of investments,and of policies, would be carried out by the respectiveimplementing agencies and coordinatedby the PCU. Monitoring indicators are shown in the table below and in Annex 6 and will be used to assess the progress of the development of the transport sector program and to measure qualitative and quantitative improvements due to project investments. IDA will also regularly supervisethe project accordingto the set indicators. Details of IDA's supervisionplan are providedin Annex 4. Duringnegotiations, Government confirmed its intention to establish a monitoring and evaluation system for all implementingagencies under the coordinationof the PCU and to assess project implementationon agreed qualitative and quantitative performanceindicators (para. 7.2(s)). 29 Table 1: Performance Indicators
Indicator Unit 1994 1995 1996 1997 19
1. General Average increase of traffic on the priority network % 5 5 5 5 5 Reduction of V.O.C. -1 -I -2 -2 -2 Average travel time on: - N'Djamena - Moundou hours S 7 6 6 6 - N'Djamena- Amtiman hours 14 12 10 9 9 Annual Expenditures for road research MCFAF S0 60 60 60 60 Annual Expenditures for environment MCFAF 50 100 100 100 100
H. Rehabilitation works Annual disbursement MCFAF 14050 10750 12075 S900 8900 Annual physical target km 178 174 147 100 100 % of secondary agricultural road rehabilitation X 30 60 65 65 65 Number of bridge rehabilitation U 2 6 6 3 3 Number of works contracts, signed U 2 3 3 2 2 Percentage of contracts executed on time 100 100 100 100 100 No. of roads studied km 170 262 115 50 S0 No. of bridges studied U 13 5 5 3 3
m. Road Maintenance Annual budget for maintenance (periodic and routine) MCFAF 3811 4162 4346 4346 4346 Annual allocation to CAER MCFAF 1700 1900 2100 2300 2500 Annual physical target (paved roads) km 378 498 578 683 763 Annual physical target (earth roads) kmn 4200 4230 4230 4232 4232 Percentage of agricultural roads % 20 20 20 20 20 Number of contract with private sector U 17 17 17 17 17 Percentage of conactm with local furm % 60 70 80 80 80 Registration of roads data U 19000 25000 35000 40000 40000
IV. Land Transport Activities Quantity of LVO delivered U 20000 21500 23000 24000 25000 Percentage of LVO collection X 87 88 90 90 90 Average delay for LVO collection days 45 40 35 30 30 Number of passengers registered in the interchange center U 2500 2700 3000 3100 3200 Passengers Traffic at N'Djamena Airport U 17000 24000 34000 Freight traffic at N'Djamena Airport T
V. Trainine Annual budget for training MCFAF 300 350 400 200 200 Nujnber of staff trained: - in the public sector U 20 25 25 15 15 - in the private sector U 150 150 150 80 80 Number staff week of training: - in the public sector SW 260 260 260 100 100 - in the private sector SW 285 285 285 150 150
VI. Institutions verformance Delay for contract award days 150 120 90 90 90 Delay for contract approval days 60 45 30 30 30 Delay for due paymenu days 60 40 60 60 60 Delay for production of activity reports days 30 30 15 15 15 30 E. Procuremnent
5.7 The table below summarizes the project elements by category, estimated costs and proposed procurement methods. A detailed procurement plan and timetable are given in Annex 9. Chad's procurementlaws and regulationshave recently been revised and conform with IDA guidelines. No special exemptions,permits or licenses need to be specified in credit documents for International CompetitiveBidding (ICB) as Chad's procurement practices allow IDA procedures to take precedence over any contrary provisions in local regulations.
5.8 During the previous projects, special attention was given to the strengthening of procurementprocedures and contract awards and streamliningof contractapproval system. The proposed project will continue to improve quality and transparencyof procurement methods by streamliningand rationalizing bid analysis and evaluation procedures, and by setting up a technical committee more competent in procurementand civil works issues.
5.9 Procurementof civil works contracts for road rehabilitation,building, and construction financedby other donors will followtheir specificprocedures and those financedby IDA will be carried out under ICB, in accordance with Bank's Guidelinesfor Procurement under IBRD Loans and IDA Credits (May 1992). Technicalassistance and consultingservices financedby IDA will be procured in accordance with Bank's Guidelinesfor the Use of Consultants(August 1991). Maintenance works financedby IDA estimatedto cost lessthan the equivalentof US$300,000each up to an aggregate amount of US$8.7 millionmay be awardedunder contractson the basisof competitivebidding advertisedlocally in accordancewith proceduressatisfactory to the Association. Office suppliesup to an aggregateamount of USS 100,000may be procured through local shoppingwith proceduressatisfactory to the Association. During project supervision,Bank financedworks contracts above a threshold of US$200,000would be subject to the Bankprior review procedures. The review process will cover about 85% of the total works contractvalue. For consultantscontracts, the prior review thresholdwould be US$100,000. Prior review would also apply to all terms of reference, employmentof individuals,sole source contractsand contract amendmentsraising the contract value to US$100,000or more. Procurementarrangements under IDA financingare summarizedin the followingtable: 31
Procurement Method
Amount and Methods of procurnemet /a USS miRlion equivalkt Item ICB LCB Other Other donors bl Total 1 Civil Works 18.5 9.8 76.5 104.8 (17.6) (8.7) (26.3)
2. Consulting services for T.A., works supervision and studies 10.2 10.2 (6.2) (6.2)
3. Training 3.9 3.9 (2.55) (2.55)
4. Operating Costs (PCU) 1.2 1.2 (0.7) c/ (0.7)
5. Reimbursement PPF 1.25 1.25 (1.25) (1.25) TOTAL 18.5 9.8 16.6 76.5 121.4 (17.6) (8.7) (10.7) (37.0) a/ Amounts in parenthesis indicate IDA financing el Operating costs fr Project Coordination Unit b/ Parallel financing by donors including Government would be in accordance with their own procedures
During negotiations Government confirmed its agreement to use the Bank's standard bidding documents for ICB, LCB, Letter of Invitation for Consultants, and the procurement plan (para. 7.1(t)). Government also confirmed its intention (i) to allow any local or foreign contractor to indicate the percentage of the bid to be paid in foreign currency; (ii) to use the procedures manual for the Directorate of Roads related to bids, evaluation and payments of works which would be reviewed by and agreed upon with IDA (para. 7.2(t)).
F. Disbursement
5.10 The IDA credit would be disbursed as follows:
Disbursement of IDA Credit Category IDA Credit Disbursement 9 Expenditures to be Amount of Credit Allocated financed a/ (US$ million) 1. Civil Works 23.0 95 2. Consulting Serv. for T.A. works supervision and studies 6.2 100 3. Training 2.55 100 4. Operating costs for Project Mgmt Unit 0.7 75 5. PPF Refinancing 1.25 Amount Due 6. Unallocated 3.3 TOTAL 37.0 a/ Of amounts net of taxes 32
IDA DisbursementSchedule (net of taxes and duties) US$ million IDA FY Total Quarters Partial Cumulative
1994 I II 1.5 1.5 III 1.0 2.5 IV 2.0 4.5 1995I 1.4 5.9 1I 1.4 7.3 III 1.2 8.5 IV 1.6 10.1
19961 1.4 11.5 II 1.4 12.9 III 0.7 13.6 IV 1.8 15.4 1997 I 2.4 17.8 1I 2.2 20.0 III 2.0 22.0 IV 2.4 24.4 1998 I 2.2 26.6 11 2.0 28.6 III 2.0 30.6 IV 1.4 32.0 1999 I 2.5 34.5 1I 2.5 37.0
5.11 The credit is expected to be fully disbursed by December 31, 1998. The estimated scheduleof disbursementshown in Annex 2 assumesthat the Credit wouldbecome effective by December 1993.
5.12 To facilitate project implementation,the borrower will open a special account in a local commercialbank on terms and conditionsacceptable to IDA, to receive, upon effectivenessof the credit, an initialdeposit equivalentin CFAF to US$750,000representing the estimatedlevel of expenditurefor a four month period. The account will be replenished periodically and will operate according to proceduresand conditionsacceptable to IDA. All withdrawalapplications submitted to IDA will be fully documentedexcept for paymentsagainst contractsof less than US$20,000equivalent, in which case the 33 expenditure). Supportingdocumentation for such paymentswill be retained by the ExecutingAgency for examinationby IDA supervisionmissions and independentauditors. Should any disbursementsbe made from the accountthat are not acceptableto IDA, the Governmentwould depositthe correspondingamount into the account. The detailed disbursementschedule over a period of five years is given in Annex 2. In addition, disbursements in FY93 reflect the refinancing of PPFs P-722-0 CD and P-722-01 CD (US$1.25million).
G. Reportingand Auditing
5.13 With the help of the consentedtechnical Directoratesand their consultants, the Project CoordinationUnit will prepare quarterlyreports on the project implementationand expenditureswhich will also be submitted to the Association,together with key indicators for monitoring progress of the envisagedreforms. During negotiations, agreementwas reached on the following:
(a) all project componentsand accounts will be audited annuallyby an independent auditor acceptableto the Association;
(b) the audit report shouldbe made availablenot later than six months followingthe end of each year. Records and accounts in relation to the SOE operations will be subject to a separateaudit report; the satisfactoryconclusions of which is one conditionfor the replenishmentof the specialaccount. The auditor's reports will include an opinion on the reference to the use of the Statement of Expenditure (para. 7.2(u));
(c) to improvetransparency in the managementmethods, a quarterly audit shouldbe undertakenfor the Road Fund (CAER);Air Tchadand BNF, in scope, detail and by independentauditors satisfactory to IDA, to be provided within thirty days of the end of each quarter (para. 7.2(v)).
(d) terms of referenceand short list for audit firms (para. 7.2(w)). A condition of effectiveness will be the appointmentof an external auditor under a multi-year contract acceptableto IDA (para. 7.3(b)).
5.14 SupervisionPlan: A project monitoringand supervisionplan totalling 108 staff weeks durijngthe life of the project is detailed in Annex 4.
5.15 Annual Reviews. The project will be implementedover a five-yearperiod. The project design will include an annual review to check the overall performanceof the project, achievementsof previous years as well as the program, the procurementplan and the budget for the next year (using performanceindicators described in Annex 4). Agreementon the scope and dates for the annual reviews was reached during negotiations (para. 7.2(x)).
5.16 Mid-term review. A mid-termreview will be carriedout in mid-1995,as a more in-depth annual review. The review will be another opportunityto evaluate,and, if needed, to modify somemajor features of the project. The review will also create an opportunityto evaluate the need to readjust activitiesin order to meet the key project objectives. During negotiations, agreement was reached on 34 the scope and terms of referenceof the mid-termreview, which will be based on a technicaland financial audit of the project (para. 7.2(y)).
H. Project Sustainability
5.17 The focus of the policy reforms and institutionalstrengthening is to ensure that road rehabilitationis managed effectively. The creation of a compte autonomed'entretien routier (CAER), an autonomousaccount which will receive the road maintenancefunds on a monthly basis, will help to ensure the adequate financingof road maintenanceon a sustainablelong-term basis. In the short-term, capacity improvements of the transport parastatals would be achieved through restructuring and broadeningownership, which will set the stage for full privatization. Consolidatingthe achievementsof the previous projects and adopting new approachesto continuingagenda items will also enhanceproject sustainability.
VI. PROJECT JUSTIFICATION AND RISKS
6.1 The specificjustification of the proposed project is provided by the standard cost-benefit analysis methodologyfor road rehabilitationprojects. On the cost side, the cost of road rehabilitation and subsequentroutine and periodic maintenancehave been taken into account. On the benefit side, the analysis includes the expected reduction in vehicle operating costs accruing to normal traffic; it also includes benefits associatedwith the increase in agriculturalvalue added from the regions that produce a marketablesurplus, and the benefits derived from the induced traffic. These benefit estimatesappear conservativewhen comparedwith the actual benefits observedunder the Road MaintenanceProject (Cr. 1728-CD); the Road ReconstructionProject (Cr. 1901-CD) and the TSAIP (Cr. 2007-CD) whose estimated rates of return were 21%, 42% and 15%, respectively. Other non-quantifiablebenefits such as positive externalities induced on the core network by its extension have not been included. The Economic Rate of Return (ERR) for the road rehabilitationcomponent which accounts for 56% of the physical investment has been estimated at between 14% and 42%. For the proposed secondary agricultural road rehabilitation component, the approach taken is based on the increased agricultural productionthat would be induced by the project. The Salamatarea is of high agriculturalpotential and couidpotentially serve a numberof urban markets to the northwest(N'Djamena), the northeast, (Abechd) and the south (Sahr, Moundou, Guelengdeng). Without improved roads, there is no possibility of commercializingagricultural production. The project proposes, therefore, a package of three roads to be rehabilitated in order to maximize the access to markets of the agriculturalists. On the basis of conservativeassumption regarding inducedproduction, the packageof roads yields a combinedERR of 13%, with ERR's for the individualsegments of 10%, 14% and 15%. The decision to includethe road with the 10% ERR is based on: (a) the economicjudgement that production will increase more if the region is truly opened up to a range of markets, (b) the fact that the market concernedis the capital city (i.e. the largest market) and (c) experienceunder previousprojects that induced traffic has been typically substantiallyhigher (up to 50% higher) than appraisal estimates. Thus, we can be confident of the economicjustification of this component. 35 6.2 The principal risk remains the chronic political instabilitywhich might affect political commitmentto fulfill or sustain policy reforms and agreed financial conditions. To minimizethis risk, careful attention was given during project preparationto sustainingthe dialogue at high Governrnent,as well as technicallevels, on the measuresproposed and supportedby the project, and to obtain consensus and commitmentto the priority program with Government and all donors active in the sector. In addition, detailed procedures, standardizeddocumentation for project implementationand the fact that the Governmenthas experiencein most of the project executiontasks from the previousprojects minimize the risks that might be associatedwith project execution.
VII. AGREEMENTS REACHED AND RECOMMENDATION
7.1 The following events took place prior to negotiations:
(a) the submissionof a new organigramand cahier des charges for MT and its agencies(para 4.12); and
(b) the submissionof a draft statutes and proceduresmanual for SNER (para 4.16).
7.2 The followingagreements were reached during negotiations
(a) annual allocationof:
- at least CFAF 1,800 million for road maintenanceand rehabilitationfor the priority roads network for FY94 including at least CFAF 1,300 million and at least CFAF 115 million for the Directorate of Roads operatingbudget;
- CFAF 2,000 million for road maintenanceand rehabilitationfor FY95 including at least CFAF 1,500 million for routine maintenance and CFAF 120 million for the Directorate of Roads operating budget;
- CFAF 2,200 million for FY96 includingCFAF 1,700 millionfor routine maintenance and CFAF 125 million for the Directorate of Roads operatingbudget;
- CFAF2,400 million for FY97 includingCFAF 1,900 millionfor routine maintenance and CFAF 130 million for the Directorate of Roads operatingbudget; and
- CFAF 2,600 millionfor FY98 includingat least CFAF 2,100 millionfor routine maintenanceand CFAF 135 million for the Directorate of Roads operating budget (para 4.6). 36 (b) the applicationof the principles defined in the Letter of Transport Sector Policy that was presented to the donors in November 1992 throughout the life of the TSP II (para. 4.2), and, specifically,that freight tariffs and shipping contracts would be freely negotiated(para. 4.7);
(c) the confirmationof its intentionnot to undertakein the transport sector any civil works or acquisitions of transport equipment above an aggregate amount of CFAF 200 million annually which are not included in the InvestmentProgram without prior consent of IDA (para. 4.2);
(d) confirmationthat CAERwill operate under operating procedures satisfactoryto IDA and that CAER will be established in a commercial bank for which withdrawalshall be made exclusivelyby MTPT for the paymentof rehabilitation works, road maintenance works of the priority road network and operating budget for the Directorate of Roads (para. 4.6);
(e) the monthlydeposit allocationsfor CAER (para. 4.6): CFAF 150 million/month in FY94; CFAF 165 million/monthin FY95; CFAF 180million/month in FY96; CFAF 200 million/monthin FY97; CFAF 215 million/monthFY98 (para 4.6);
(f) the appointmentand the maintainingof high level staff, with qualificationsand experience acceptableto IDA, to head the main Directorates in the Ministry of Public Works and Transport and entities under its tutelage (para. 4.12);
(g) the maintainingof the Project CoordinationUnit headed by a qualifiedtechnician whose experience is acceptable to IDA and to maintain the Interministerial Steering Committee(para. 4.18);
(h) the confirmationof the signingof a managementcontract betweenAir Tchadand an external airline company no later than December 31, 1993 (para. 4.19);
(i) the confirmationof the signingof a contract betweenLNBTP and the Directorate of Roads for the execution of the research program, on agreed TORs and implementationschedule (para. 4.21);
(j) the contractingout annually no less than 50% of routine maintenanceactivities to the private sector in accordancewith competitiveprocedures, and beginning January 1, 1997 not provide any preference to SNER relative to the domestic private sector in the contractingof routine maintenanceworks (para. 4.23);
(k) all amounts due to private contractorswill be paid within 60 days of their due date and a monitoringsystem will be establishedto track due dates and payment dates (para. 4.23);
(I) the confirmationof the technicalassistance and training program for the private contractors(para. 4.24); 37 (m) the employmentof alignmentand constructionstandards and designs acceptable to the Association(para. 4.3);
(n) the confirmationof the cost estimatesof the project (para. 4.34);
(o) the confirmationof the financingplan in accordancewith the commitmentsmade by the other donors (para. 4.38);
(p) the confirmationof Government's commitment to the implementationof the environmentalplan for the transport sector (para. 4.39);
(q) the agreement to limit SNER activities to a maximum of 50% of total annual routine maintenancecosts for FY94, FY95 and FY96 (see para 7.2(g)) above and para. 5.3);
(r) the implementationof the Project in accordance with the implementation schedule, supervisionplan, and the Action Plans attached to the Statement of Sector Policy (para. 5.3);
(s) the establishmentof a monitoringand evaluation system for all implementing agenciesunder the coordinationof the PCU and to assess project implementation on agreed qualitativeand quantitativeperformance indicators (para. 5.6);
(t) the use of the standardbidding documents for ICB, LCB, Letter of Invitationfor Consultants,the procurementplan, and the proceduresmanual for the Directorate of Roads related to bids, evaluation and payments of works (para. 5.9);
(u) the carrying out of an annual audit of all project componentsand accountsby an independentauditor acceptableto the Association(para 5.13(a)); assure the audit report is made availableno later than six monthsfollowing the end of each year; and a separate audit is carried out for SOEs (para. 5.13(b));
(v) the undertakingof a quarterly audit for the autonomous account (CAER); Air Tchadand BNF in scope, detail and by independentauditors satisfactoryto IDA, to be provided within thirty days of the end of each quarter (para. 5.13(c));
(w) the agreementon terms of reference and short list of Audit firms (para. 5.13(d));
(x) the agreementon the scope and dates for the annual reviews (para. 5.15); and
(y) the agreementon the scope and terms of reference of the mid-termreview to be carried out not earlier than June 1, 1995 and not later than September30, 1995 (para. 5.16).
7.3 The followingare conditions of effectiveness:
(a) the performancecontract for Air Tchad, acceptableto the Association,should be signed by Air Tchad and the Government(para. 4.19); 38 (b) appointmentof an external auditor acceptableto IDA under terms and conditions includinga multi year period of service, satisfactoryto IDA (para. 5.13(d));
(c) the creation of SNER by an instrumentand with statutes, as well as the adoption of operatingprocedures manual, satisfactoryto IDA (para 4.16(c));
(d) the appointmentand maintainingby SNER of a ManagingDirector, a Technical Director, a Financial Director and a Management Comptroller, each with qualificationsand experienceand under terms and conditionssatisfactory to IDA (para 4.16(d));
(e) the reorganizationof MTPTin accordancewith the new organigramagreed upon with IDA (para 4.16(b));
(f) the adoption of a dissolutionplan to terminatethe operations of OFNAR (para 4.16(a));
(g) the establishment of CAER by instrument and with operating procedures, satisfactory to IDA; and CAER operating in conformity with such operating procedures during the preceding two months (para 4.6); and
(h) the adoptionof a training program for 1994 satisfactoryto IDA (para 4.31).
7.4 Subject to the above conditions,the proposed project is suitable for a Credit of US$37.0 million equivalentto the Republicof Chad on standard IDA terms. 39
,ANNEX 1
Key Economic Indicators
KEYECONOMIC INDICATORS (in %a,cept as indicatedothaeise)
E -- -: -: ~(cat) GDP growth rate l/ 25.9 -4.1 -2.0 15.5 4.9 4.5 8.4 GDP per capita growth 23.4 -6.6 -4.5 13.0 2.4 -3.0 5.9
Exports/GDP 17.9 19.0 22.0 21.4 19.6 193 18.5 InvestmentlGDP 5.4 9.1 10.2 7.9 9.0 9.4 8.1 Dom.savings/GDP -22.4 -22.1 -19.6 -13.5 -16.0 -12.2 -17.0
Governmentrevenue/GDP 6.9 6.8 7.9 8.0- 8.9 9,6 8.8 Current expendituresJ GDP - 9.5 11.3 10.0 13.1 14.4 10.8 Current deficit/GDP - 2.7 -3.3 -2.0 4.2 -4.9 -7.0
Aid disbursetnents($m) 144 221 285 291 315 327 373
Real cffective exchange 100 90.2 89.6 96.7 87,3 93.3 rate index (1985 = 100) 2/
1/ Rainfallessentially explains the wide fluctuationsin GDP growth rates From a longer-termperspective, the growth rate for the decade of the 1980's was substantiallybetter than earlier periods(1977 constantprices): 0.6% for 1965-73and -1.5% for 197380. 2 Trade-weightedaverage of nominalexchange rate index for each of Chad's main trading paers and competitors,adjusted for relativc inflationin Ch and these countries. Increase idica appreciaton. 40 ANNEX" Page 1
Second Transoort Sector Proiect
Detailed Financina Plan (Net of Taxes and Duties)
US $ million Project components BDEAC EDF CFD IDA OPEC GOC TOTAL
A. PHYSICALCOMPONENT 1. Investment Costs - Civil works a. Rehabilitation 7.1 3.6 14.3 5.2 1.8 32.0 b. Periodic maintenance 5.1 7.8 8.7 5.1 26.7 c. Bridges 1.4 1.4 d. Road terminal 3.4 3.4
2. Recurrent costs a. Routine maintenance 3.9 25.4 29.3
B. INSTITUTIONALSTRENGTHENING COMPONENT 1. Consultants services for Public Works a. Studies and supervision 0.7 0.6 2.1 3.4 b. Technical assistance 1.0 1.9 2.9 c. Audits & Proj. Coord. Unit 1.6 1.6
2. Consultants services for Transport & Civil Aviation a. Studies and supervision 0.3 0.3 b. Technical assistance 0.6 0.6
3. Training and scholarship 1.0 2.3 3.3
4. Operating costs 0.7 0.5 1.2
C. CONTINGENCIES 1. Physical contingencies 1.3 1.6 0.4 2.2 0.5 2.2 8.2 2. Price contingencies 0.8 1.0 0.2 1.1 0.3 2.2 5.6
D. REFINANCINGPPF 1.5 1.5
TOTAL 15.0 22.0 4.2 37.0 6.0 37.3 121.4 41 ANNEX 2 Page 2 SecondTransport Sector Proiect
Detailed IDA financina (Net of Taxes and Duties)
- US $ million - Projectcomponents Total IDA % IDA
A. PHYSICALCOMPONENT 1. Civil works a. Rehabilitation 32.0 14.3 45% b. Periodicmaintenance 26.7 8.7 33% c. Bridges 1.4 0% d. Roadterminal 3.4 0%
2. Recurrent Costs a. Routine maintenance 29.3 0%
B. INSTITUTIONALSTRENGTHENING COMPONENT 1. Consultantsservices for PublicWorks a. Studies and supervision 3.4 2.1 62% b. Technical assistance 2.9 1.9 66% c. Audits & Proj. Coord.Unit 1.6 1.6 100%
2. Consultantsservices for Transport& Civil Aviation a. Studiesand supervision 0.3 0% b. Technicalassistance 0.6 0.6 100%
3. Training and scholarship 3.3 2.3 70%
4. Operatingcosts 1.2 0.7 56%
C. CONTINGENCIES 1. Physicalcontingencies 8.2 2.2 26% 2. Pricecontingencies 5.6 1.1 19%
D. REFINANCINGPPF 1.5 1.5 100%
TOTAL 121.4 37.0 30% 42 ANNEX2 Page 3
Second Transport Sector Project
IDA Disbursement Schedule (net of taxes and duties)
IDA FY US $ million Quarters Total Partial Cumulative
1994 1 11 1.5 1.5 III 1.0 2.5 IV 2.0 4.5 1995 1 1.4 5.9 11 1.4 7.3 III 1.2 8.5 IV 1.6 10.1 1996 1 1.4 11.5 11 1.4 12.9 III 0.7 13.6 IV 1.8 15.4 1997 1 2.4 17.8 11 2.2 20.0 III 2.0 22.0 IV 2.4 24.4 1998 1 2.2 26.6 11 2.0 28.6 III 2.0 30.6 IV 1.4 32.0 1999 1 2.5 34.5 11 2.5 37.0 43 ANNEX 2
Second transport Sector Proiect Page 4
Imnlementation Schedule (All donors financinal (Net of Taxes and Duties)
------~- US S million ------Project components 1993 1994 1995 1996 1997 1998 Total
A. PHYSICALCOMPONENT 1. Investment Costs a. Rehabilitation 3.5 7.7 5.7 7.6 7.5 32.0 b. Periodic maintenance 3.1 7.9 8.7 7.1 26.7 c. Bridges 0.5 0.5 0.5 1.4 d. Road terminal 1.7 1.7 3.4
2. Recurrent costs a. Routine maintenance 3.0 5.7 6.0 5.7 5.7 3.1 29.3
B. INSTITUTIONALSTRENGTHENING COMPONENT 1. Consultants services for Public Works a. Studies and supervision 0.9 0.9 0.8 0.5 0.3 3.4 b. Technical assistance 0.3 1.2 0.9 0.5 2.9 c. Audits & Proj. Coord. Unit 0.5 0.5 0.5 0.1 0.1 1.6
2. Consultants services for Transport & Civil Aviation a. Studies and supervision 0.1 0.1 0.3 b. Technical assistance 0.0 0.2 0.2 0.2 0.6
3. Training and scholarship 0.0 1.1 1.0 1.1 3.3
4p.Operatingcosts 0.0 0.2 0.2 0.3 0.2 0.1 1.2
C. CONTINGENCIES 1. Physicalcontingencies 0.3 1.6 2.3 2.1 1.2 0.7 8.2 2. Price contingencies 0.5 1.3 1.9 1.2 0.7 5.6
1.5 1.5
TOTAL 8.2 23.8 32.1 28.3 16.5 12.5 121.4 44
Annex 2 Page 5
Second Transoort Sector Project 120 Man x month Technical assistance to MTPT
100
*Public Works (Directorate of Roads, 80 OFNAR & Procurmrnt unit) * Transport &Cvil asiation
60 Proj. Cooed. Unit
40
20
0 1990 1991 1992 1993 1994 1995 1996 1997 1998 45
Annex 2 Page 6
Second Transport Sector Project Disbursment schedule 140 -- US$ million Disbursment 120
100
80- /0 -,'... Othe-r
60
40
20 10 Chad
1993 1994 1995 1996 1997 1998 46
Annex 2 Page 7
SecondTransoort Sector Proiect Disbursment profiles 140 USS million Disbursment 120
100 * TOTAL
80 - CHAD
60 JIDA
40
20
0 1993 1994 1995 1996 1997 1998 47 Annex 3 Page 1
Terms of Reference for Technical Assistance
SOMMAIRE
INTRODUCTION
II. ACTIONS ENVISAGEES
1. Objectifs 2. Composition des equipes 3. Description des tlches et qualifications 4. Suivi de siege 5. Transfert de connaissance
III. PROGRAMME D'INTERVENTION 48 Annex 3 Page 2
I. INTRODUCTION
Depuis 1989, le Ministere des Travaux Publics et des Transports met en oeuvre avec d6termination la politiquegouvernementale relative au secteur.
Au cours des trois prochainesann6es, des efforts consistantsdoivent toujours etre foumis pour atteindre les objectifs assignes.
Un appui a l'Administrationest donc indispensablepour la concr6tisationdes mesures fondamentales deja arretees.
HI. ACTIONS ENVISAGEES
1. Objectifs
Les progres attendus en matiere de:
- liberalisation du secteur, - facilitation du transit international, - ameliorationde 1'exploitationdes transports routiers et aeriens, - entretien et r6habilitationdu r6seau routier, - promotion du secteur prive, - renforcement des institutions, - gestion des ressources humaines, doivent permettre de contribuer efficacementau developpementeconomique et social.
L'assistance technique, par ses activites d'appui a la Cellule Interministeriellede Suivi et de Coordinationdes Projets du Secteur et aux divers services techniquesdu Ministere doit favoriser l'atteinte de ces objectifs.
La mission d'appui comportera deux volets:
- assistancea la CISCP et au sous-secteurroutier, - assistance dans le domaine des transports.
2. Compositiondes 6quipes 49
Annex 3 Page 3 La composition des equipes d'assistance technique et le temps de presence de chaque expert sont les suivants: a) Coordination et Travaux Publics
Quantites Positions Responsabilit6s Dur6e (homme/mois)
1 Conseiller du - Coordination des aides exterieures 30 Coordonnateur - Toutes questions de politique gen6rale de l'OFNAR et des TP en matiere de routes
- Administration des projets
I Chef de la Cellule - Toutes questions relatives a l'6laboration des dossiers 1S Juridique et des d'appels d'offres, et a la passation des contrats. Marches
I Adjoint au Directeur - Planification et normalisation dans le secteur routier. 10 des Routes, Expert en planification - Assistance et contr6le pour 1'ex&eutiondu I'actualisation d'6tudes technico-&onomiques.
Conseiller en 1 gestion des travaux - Toutes questions techniques et administratives au niveau de la 15 d'entretien Division de 1'Entretien Routier.
Chefs de service regional 2 - Toutes questions techniques de la competence d'une Delegation 45 Experts court terme regionale dans le domaine routier.
- Diverses etudes et missions 15
TOTAL 130 so Annex 3 Page 4 b) Transports
Quantites Positions Responsabilit6s Dur6e (homme/mois) Conseillerdu Directeur - Toutes questionsde 8 General en matiere de politiquegenerale en transports matiere de transports
Experts court terne - Diverses etudes 1 ~~~~~~~~~~~~~~~~~~~20 TOTAL 28
3. Descriptiondes tAcheset qualifications
Tous les experts de l'assistance techniquedoivent avoir une parfaite connaissancede la langue francaise et de bonnes qualitespedagogiques pour assurer le transfert de leur technologievers les cadres nationauxet avoir travaille dans un ou plusieurspays en developpement. Les qualificationset fonctions specifiquesdes membres de l'equipe devront etre:\ a) Coordinationet Travaux Publics
* Conseiller du Coordinateur
Cet expert, de haut niveau, devra poss6der une tres grande aisance dans l'art de pratiquerdes relationspubliques. 11aura une tres bonne connaissancedes problemes techniqueslids I la constructionet 1'entretiendes routes en Afrique ainsi qu'une bonne culture en economiede transport. II aura une pratique d'au moins cinq annees dans l'exercice d'une fonctionde haut niveau. II aura une bonne pratiquedes bailleurs de fonds et de leurs procedures.
Cet expert aura pour taches essentielles:
- le conseil du Coordinateur
-l'assistance au Directeur General des Travaux Publics principalementdans ses fonctionsde Conseillertechnique de son Ministre en matiere de routes,
- la collecte, la tenue a jour et le traitement de toutes informationssur les projets de developpementen cours de preparationou d'ex6cution dans le secteur routier et des transportsroutiers,
- la preparationde rapportsperiodiques en cette matiere permettantla diffusion de ces informationsaupres des services nationauxet des bailleurs de fonds interesseset mettant en evidenceles probIlmes particuliers pour lesquels une concertationentre certains bailleurs et le gouvernementpourrait assurer des r6sultatsplus satisfaisants, 51 Annex 3 Page 5 - l'organisation de r6unions de coordination,
- l'examen des programmes de travail et des budgets annuels en vue de s'assurer que toutes les obligationsdu gouvernementresultant de conventions ou d'accords de credit dans le secteur des transports soient assur6s.
* Chef de la Cellule Juridiqueet des Marches
Cet expert, specialistede l'administrationdes march6spublics devra egalement poss6derune bonne experiencetechnique en matiere de travaux publics.
II aura une pratique d'au moins dix ann6es dans des fonctions similaires.
Dans le cadre de l'organisation et la supervisiondu fonctionnementdu service qu'il anime, cet expert aura pour taches essentielles:
- l'applicationdes textes reglementaires,
- la r6vision ou l'elaboration des documentscontractuels types,
- l'instruction des appels d'offre pour les march6s du secteur des transports,
- le suivi des processus administratifsvisant a la passation des march6s,
- la conservationdes documentsoriginaux des marches,
- le conseil des directeurs techniquesen cas de litige dans l'interpretation des marches.
* Adjoint au Directeurdes Routes, expert en planification
Cet expert sera un ingenieurroutier ayant une tres bonne experience en organisation et gestion des services de planificationet normalisationen matiere de travaux routiers et de bonnes connaissancesen 6conomiedes transports. I1 aura une experienced'au moins dix ann6esde pratique dans un tel service, dont cinq ann6esde fonctions similaires exercees dans un pays d'Afrique.
Ces fonctionscomporteront notamment les taches suivantes: 52 Annex 3 Page 6 - assistance au Directeur des Routes en toutes matieres techniques, economique ou de gestion,
- appui a la normalisation,
- aide au developpementde la recherche routiere.
* Conseillerdu Chef de la Division de I'Entretien(Direction des Routes)
Cet expert sera un ingenieur routier ayant une excellente experience de l'entretien routier tant en travaux qu'en gestion administrativeet programmation. I1 aura une experience d'au moins dix annees de pratique dans ces domaines dont cinq annees en Afrique.
Cet expert aura pour taches essentielles:
- le conseil au Chef de Division en matiere de gestion de l'entretien routier,
- l'elaboration d'un systame de gestion informatise,
- le suivi de la normalisationdans les domaines de sa competence.
$ Chef de ServiceRegional des Routes
Ces experts seront des ingenieursroutiers ayant une experience administrativede suivi et contr6le de travaux d'entretien routier. Ils auront une experience de quelques annees dans un pays d'Afrique dans des fonctionssimilaires.
Leurs fonctionscomporteront les tiches suivantes:
- la mise en place des procedures de gestion administrative,financiere et techniqueadaptees a l'organisationgenerale de l'entretien routier,
- la supervisiondu point de vue de l'administration des taches de l'entretien routier,
- la definition des plans types des rapports d'activite. 53 Annex 3 Page 7 D'une maniere generale, ils animerontet dirigeront les activites de l'Administration dans les regions dans le domaine des routes. Deux experts seront mis en place, l'un en charge des services routiers relatifs aux delegationsregionales du Sud Ouest et du Sud Est, I'autre du Centre Ouest et de l'Est.
Experts court terme
Ces experts de haut niveau sont appeles a etre mobilis6sen fonction des besoins de I'Administration. I1 pourra s'agir, sans que cette liste soit exhaustive, de:
- expert institutionnel,
- expert juriste,
- expert environnement,
- economistespecialiste des infrastructuresroutieres.
Une exp6riencereussie en Afrique est indispensable. b) Transports
-- Conseiller Transports aupr*s du Directeur G&nral
Cet expert, specialistedes transports (terrestres et a6riens) doit avoir une grande experience en matiere d'economie, d'affretement et de transit. Un ou plusieurs experiences concretesdans l'entreprise sont souhaitables. Une bonne connaissancedu contexte africain sera appr6ci6e.
Cet expert aura pour tAchesessentielles:
- le conseil du Directeur General en matiere de transports,
- la coordinationtechnique des differentes directionsconcemees par les transports,
- la mise a niveau de la reglementationdes transports et le conseil en matiere de transit intemational,
- le developpementdes systames d'information sur les transports,
- l'appui et le conseil aux organismesdu secteur (BNF et AIR TCHAD). 54 Annex 3 Page 8 * Experts court terme
Ces experts de haut niveau seront mobilises en fonction des besoins de l'Administration. II pourra s'agir sans que cette liste soit exhaustive de:
- expert 6conomiste,
- expert juriste,
- expert informaticien,
- expert statisticien.
Une experiencereussie en Afrique est indispensable.
4. Suivi de siege
Pour chacun des volets, le Consultantdevra definir l'appui qu'il compte fournir au travers d'un correspondant"au siege". Cet expert, de haut niveau, devra avoir une experiencede l'Afrique, du secteur des transports, des pratiques administratives,ainsi que des proc6dures et regles des bailleurs de fonds.
5. Transfert de connaissance
Chacun des experts resident au Tchad devra assurer aupres de son adjoint (ou homologueselon le cas) le transfert de connaissanceindispensable necessaire a assurer le releve au depart du consultant. m. PROGRAMME D'INTERVENTION
La duree de l'intervention est de 36 mois.
Apres une phase continue fixee de 6 a 12 mois selon le cas (excepte le Conseiller du Coordinateur), I'appui au Ministare des Travaux Publics et des Transports sera apport6 au travers de missionsplus ponctuellesaux objectifs particuliersprecis, etablis en fonction des besoins. ANNEXE 3 Page 9
PST 2 - PLANNING PREVISIONNEL ASSISTANCE, FORMATION, ETUDES, MINISTERE MTPT
1993 1994 1995 1996 1997 1998
III IV I 11 III IV I 11 III IV I 11 III IV I 11 III IV I 11 CseillerTech. DGTPT A Remise niveau reglem A _ _ InformatisationDTS A _ Comite Uaison A Aide gestion PME F _ _ _ _ _ IndicateursEcon. A _ - _ _ GaresRoutieres E _ Aide gestion BNF A _ _ Planformation trans. F _ Negociations recipr. A 1 Procedures UDEAC A _ Audit Air Tchad A ______Assistance Tech. DAC A _
Conseiller CISCP Experts court terme CISCP et DG _ _ _ - - _ _ _ Chef Div. Ress. Humaines
Expert Marche _ Conseil. DirecteursI Planif. Expert Planification _ Expert Gestion Tx Entret. _ Experts court terme _ _ _ _ _ Chef Serv. Reg. RoutesNDJ Chef Serv. Reg. Routes SAR _ _ Chef Serv. Reg. RoutesMOU Chef Serv. Reg. Routes ABE _ A: Assistance;F: Formation; E: Etudes. 56
ANNEX 4 Page 1
Project Monitoring and Supervision Plan
1. IDA SupervisionInput. Regular supervisionneeds are described in Table I of this Annex. In addition, specific tasks such as review of program reports, terms of reference, quarterly and annual audits, annual work program, procurementand disbursementactions are estimatedto require 14 staff weeks of various specialistinput a year which are not includedin Table 1.
Borrower's contributionto Supervision
2. The bulk of the supervisionwill be handled by the InterministerialSteering Committeeand the Project CoordinationUnit which will focus on the monitoringof all the implementingagencies to follow all the issues related to policy measures, budgetary allocations,donors coordination,procurement, and physical implementation.
3. Ouarterly progress reports would be submittedto IDA and all the other donors concerned. They would include a summary of implementationunder each project component,financial statementson project expenditures,updated project implementation,procurement schedules, as well as the status of contract advertising,bidding, awards, completiondates and compliancewith aggregate limits on specifiedmethods of procurement. The Project CoordinationUnit would collect inputs for each implementingagency and prepare the reports. These reports will highlight in particular the actual status of performanceindicators in comparisonwith the performanceplans.
4. Quarterly audit reports will be provided for the CAER and Air Tchad.
5. Joint semi-annualreviews. Twice a year (October/Novemberand March/April)the Project CoordinationUnit would organize a joint IDA/otherdonors/Government review of the project implementation based on: (i) the progress report (which, for the purposes of the semi-annualreview, would also includean annual work program and correspondingbudget for the year considered and a draft budget and work program for the followingyear); (ii) an assessmentof technicalassistance performance and executionof the training program; and (iii) the status of policy and project monitoringindicators.
6. A mid-termreview: In addition, the project managementwould carry out mid-waythrough implementation,a review of the project includingdonors commitmentsduring the roundtableheld in November 1992. This review will be held in June 1995. The review will cover all aspects, withia special focus on (i) progress in implementingpolicy measures and their impact on sector development(public and private), cost and efficiencyof the system; (ii) effectivenessof budget allocation measures; (iii) effectiveness of private sector developmentmeasures.
7. Project CompletionReport. Within six monthsof the Credit closing date a completionreport, prepared in accordancewith terms of reference satisfactoryto IDA would be transmitted to IDA. 57
ANNEX 4 Page 2 TABLE 1
Supervision Plan
IDA Fiscal Year (FY) Activity Skill Staff Weeks and Approx. dates Requirements FY94 Launchingof the project Sector policy dialogue, civil 12 Oct/Nov93 works, procurement,Project Mgmt, privatizationprocess
March/April94 Supervisionmission Civilworks, financial 18 Reviewthe implementation specialist,Project Mgmt of the overall project. airline specialist Physicalimplementation of works. Actual allocationfor CAEF, Air Tchad, performanceplan, TA and Trainingprogram FY95 Semi-annualreview mission. Same as above 10 June/July94 Reviewprogress made that year and plans for the next year includingefficiency in public sector management, performanceof SNER, TA and Training program, Reviewof donors commitment
Oct/Nov94 Supervisionmission 10
March/April95 2nd Semi-annualreview Same as above 10 FY96 Jul/Aug 95 Supervisionmission Same as above 10
Oct/Nov 3rd Semi-annualreview Same as above 10 mission March/April96 4th Semi-annualreview Same as above 10 mission FY97 Nov/Dec96 Project completionmission TBA 18
TOTAL
FY94 30 FY95 30 FY96 30 FY97 18 Annex4 Page3 Project ImplembntationSchedule All donorsfinanced operations
ProjectComponent 1993 1994 1995 1996 1997 1998 Ill IV I 11 III IV I 11 Ill IV I 11 Ill IV I 11 III IV I 11
A. PHYSICALCOMPONENT
1. Investment Costs - Civil Works a. Rehabilitation b. PeriodicMaintenance _ c. Bridges d. RoadTerminal
2. Recurrentcosts a. RoutineMaintenance
B. INSTITUTIONALSTRENGTHENING COMPONENT
1. Consultant Servicesfor PublicWorks a. Studies and Supervision b. TechnicalAssistance c. Audit and Proj. Mang. Unit
2. ConsultantServices for Transport & Civil Aviation a. Studiesand Supervision b. TechnicalAssistance
3. Training and scholarship
4. Operating Costs - 59
ANNEX5 Page 1
Republicof Chad Ministry of Planning and Cooperation
From: Washington, May 15, 1993 The Minister
To: Mr. Lewis T. Preston President World Bank Washington,D.C.
Dear Mr. President:
On behalf of the Governmentof Chad, I have the honor to send you herewith the Letter of Transport Sector Policy, prepared in close collaborationwith representativesof the World Bank.
This Letter of Sector Policy ties in with the sector strategy prepared in collaborationwith your staff and submittedto the donor communityin November 1992.
The Governmentof the Republicof Chad hereby requests IDA's support in the financingof a SecondTransport Sector Project (PST2).
With this in mind, I have includedin the attached documenta brief review of the objectives of the program of reforms already undertakenin the transport sector and a descriptionof further actions that the Governmentintends to take.
Yours, etc.
ls! Ibni Oumar MahamatSaleh 60
ANNEX 5 Page 2
GOVERNMENT OF THE REPUBLIC OF CHAD LETTER OF TRANSPORT SECTOR POLICY
1. Introduction - Recent developments in the Chadian economy
Chad, one of the world's poorest countries with an estimated average per capita income of US$190in 1991, has been experiencingserious economicand financial difficulties for the past 20 years.
Since 1983, the country has been making progress along the path to political stabilization, democratization,and economic reconstruction. The NationalConference held from January to April 1993 representedan importantmilestone, holding out hope for the country's future. The many difficulties encountered,linked essentiallyto the country's low level of developmentand to its physical environment, must be overcome.
During the period 1982-85,record cotton harvests allowed Chad to substantiallyincrease its GDP (+7% a year). But since the onset of the cotton crisis in 1986, the economyhas slowed down so much that its growth rate is now lagging behind that of the population.
The Chadian economy is characterizedby:
- major handicaps of a non-economicnature, in particular the country's climate and landlockedsituation;
inadequatelevels of exports, concentratedmainly on cotton and cattle on the hoof;
inadequatelevels of private investmentto meet potentiallylarge requirements.
2. Economicdevelopment strategy
To solve both its basic developmentproblems and the structural problems of its economy, Chad proceeded at the end of the war, with the support of the internationalcommunity (Geneva 1985), to draw up an Interim DevelopmentPlan (1986-88).
The long-termobjectives of this plan, still valid today, consistedof making the country self- sufficientin food, reducing its dependenceon cotton, rehabilitatingand maintainingthe transport system, and acceleratingthe developmentof its human resources.
In 1991, the Governmentconfirmed the main thrusts of its developmentpolicy:
improve social conditionsso that the people are better equipped to handle the cultural, political, socioeconomic,and technologicalchanges that country has to face; 61
ANNEX 5 Page 3
increase production capacitiesthrough institutionalmodernization and economic liberalization;
- restore key economicand financial equilibria and maintain a healthy rate of growth.
Within the frameworkof this economicdevelopment strategy, the transport sector has a key role to play in light of the country's landlockedsituation, the geographicdispersal of its economicactivities, and the progress that it may be expectedto achieve once it has access to the broader regional dynamic.
The role of foreign trade in Chad's economy, the growth of the country's urban population, and the developmentof regional markets are all further reasons for the key strategic role assignedto the transport sector.
With its many macroeconomicfunctions, the transport sector supports the country's other economicactivities. It plays a particularlyimportant role upstream and downstreamof both agricultural production and trade, and is a major generatorof employment.
3. Transport sector strategy
Bearing in mind the importanceof this sector, and desiring to strengthenthe objectives assignedto it, the Governmenthas reaffirmedthe basic principlesof its strategy:
- reduction of transport costs;
- institution building;
- liberalization of the sector.
These key principlesessentially involve actions along the followinglines:
- assigningpriority, for the sector as a whole, to investmentin routine and periodic maintenanceand rehabilitation,but limitingthis investmentto a specifichigh priority transport network providinga permanentlink between the major production and consumptioncenters;
promotingexpansion of the private sector, by permittingprivate contractorsto bid on works traditionallyand routinely executedby force account, leavingthe Governmentto develop its expertise in the areas of design, planning, and supervision;
continuingthe process of restructuringAir Tchad, includingsignature of a contrat-plan with the Governmentor a cooperationagreement with externalpartners, for the purpose of streamliningthe company's managementand making it financiallyviable. 62 ANNEX 5 Page 4
These actions are designed to create the appropriateconditions for the sector's participation in the revival of the national economy.
To implementthis strategy, the Governmentlaunched a Transport Sector AdjustmentProject (1989-93), and has now prepared a Second Transport Sector Project (1993-98).
4. Action program
(a) Actions already undertaken
In 1989, the Governmentidentified a high priority road network, and decidedto concentrate its efforts on the rehabilitationand maintenanceof that network. The investmentprogram, approved at the 1988 Donors Meeting, was launched and duly respected.
The key sector policy reforms were implemented,specifically the liberalizationof road transport through the abolition of monopoliesand administrativetariffs.
At the same time, the Governmentacquired the institutionalresources required for rigorous managementof the sector. Governmentagencies and parapublic institutionswere restructured in an effort to make them more cost-effective. Thanks to modernizationof the administrativeand legal framework for governmentcontracts it was possible for substantialprogress to be made in the managementof public investmentprograms.
The Governmentalso took resolute action to apply certain new basic legal provisions, particularlyin the area of liberalizationof the sector, with a view to improvingthe transport of both goods and passengers and thereby improvingconditions of trade, increasingthe country's levels of economic performance,and loweringcosts.
(b) Proposedactions
In view of the magnitudeof the tasks remainingto be done, despite the substantialefforts already made, the Governmentwishes to confirm its adherenceto its original objectives.
To ensure the coherenceof its actions in the transport sector, the Governmentthus intends to lose no time in implementingthe followingmeasures:
continuedinstitution building at the Ministryof Public Works and Transport, with a view to improvingthe efficiencyof Governmentagencies by restrictingtheir role to design, planning, regulation, and supervision;
developmentof human capacitiesthrough more rigorous human resource management; 63 ANNEX5 Page 5
support for the agriculturaldevelopment policy through rehabilitationand maintenanceof a network of some 900 km of feeder roads, thus bringing the priority networkto close to 4,700 km;
facilitationof internationaltransit through measures designed as part of the move toward regional integration, primarily with Cameroon and the CAR;
improvementof surface transport operations;
coherent and increasedmobilization of local resources linked to the sector;
allocationof adequatelevels of local financial resourcesto road maintenance;
creation of an AutonomousAccount for Road Maintenance,to ensure availabilityand efficient managementof the funds allocatedto maintenance;
promotionof local private entrepreneursin the public works area, particularly where road maintenancecontracts are concerned;
conversion of Office National des Routes into a societe nationale with a private-type managementstructure, with plans to study its subsequentprivatization;
opening up of LNBTP's capital to private-sectorparticipation;
active continuationof the overhaul and adaptationof the procedures governing contract award, approval and management,so as to make the choices more transparent, expedite works execution, and ensure prompt settlementof the correspondingpayments.
All measures relative to implementationof this Letter of Policy are set forth in the annexed action plans.
Conclusion
The present Letter of Transport Sector Policy and the annexes thereto are evidenceof the Government'sdetermination to lay solid bases for our nation's economywithin the frameworkof the Transport Sector Project. It is intendedto serve as a reference for all actions taken in this area during the period concerned,and in that capacity merits the understandingand respect of all of our partners in development. 64 ANNEX 5-1 Page I
ACTION PLAN FOR THE ROADS SECTOR
Foreword
Within the frameworkof the Transport Sector AdjustmentProgram 1989-93, some 2,800 km of the 3,800-km high priority road networkhave been rehabilitated. Within the framework of the Second Transport Sector Project (1994-98), it was agreed to increasethis priority network to 4,760 km, to include a network of what are essentiallysecondary rural roads, with a view to promotingthe development of agriculturalproduction and facilitatingtrade between surplus and deficitary areas.
Bearing in mind the efforts already made to rehabilitatethe road network, and desiring to safeguardthe national assets, the Governmentintends to devote particular attention to maintenanceof the revised priority network.
The Governmentintends to continuethe efforts being made in the area of highway research to optimize constructionstandards.
Environmentally-orientedactions are today high on the list of Governmentconcerns. The physical investmentsalready carried out represent a useful yardstick for measuring impact. Certain environmentalchanges, whose results are already perceptible, are sometimesnegative. The factoringof environmentalconsiderations into transport sector projects should lead to improvementsin investment quality. Environmentaldata, like technical and economicdata, shouldbe available for the Government,as contractingauthority [mattred'ouvrage], to use as pointers throughout the project cycle.
Objectives
Followingare the objectivesof the action plan for the road sector:
A. ROAD MAINTENANCE
Improve managementof the road networkthrough better works programmingand rigorous on-site supervision.
Improve the conditionsand methods of executionof road maintenanceprograms.
Ensure the availabilityof adequatefinancing for maintenanceof the priority network. 65
ANNEXS-1 Page 2
B. NETWORKREHABILITATION
- Pursue rehabilitationof the priority road network and initiate rehabilitationof feeder roads linkingproduction areas with the priority network.
- Rehabilitateor construct bridges and culverts to ensure continuityof traffic flow within the priority network.
C. HIGHWAY RESEARCH
- Improve the capacitiesof the HighwaysDirectorate in the area of site investigation [gtotechniquerouti&rej to ensure a more informed approach to the complexitiesand particularitiesof the local context in terms of geomorphology,availability of materials and of water, climatology,and the environment.
Set up geotechnicdata banks based on works and experiments.
Assign a broader role to the LNBTPand develop its technologicalskills, spirit of initiative, and competitiveness.
Improve the quality of interactionamong the LNBTP, the Directoratesof the Ministryof Public Works and Transport, and the other technicalministries active in the area of environmentalprotection.
D. ENVIRONMENT
- Minimizeconstraints, in particular through better protectionof the forest resource and strengtheningof the reforestationpolicy.
- Improve the existingsituation by institutingmechanisms for collaboratingwith external agencies and with the local communitiesconcerned.
Actions
1. TO ACHIEVE THE OBJECTIVESOF THE ROAD SUBSECTOR:
A. THE FOLLOWING INSTIUTIONAL MEASURESHAVE ALREADYBEEN TAKEN:
* Preparationof legislativemeasures redefiningthe organizationof the Ministry of Public Works and Transport, focusing in particular on the role and functionsof the Highways Directorate. 66 ANNEX S-1 Page 3
* Preparationof all legislativemeasures redefiningthe existence,organization and functionsof the High InterministerialCommittee responsible for monitoringPASET projects, the Technical Committee,and the InterministerialProject Monitoring and CoordinationUnit.
* Preparationof the statuts of the new road maintenancecompany (SocieteNationale de l'EntretienRoutier - SNER).
* Preparationof legislativemeasures:
- creating the independentroad maintenanceaccount and establishingprocedures for its managementand the appointmentof its authorized signatories.
These documentswill indicate the pertinent budget line items and the procedures for funding the account;
* Preparationof decrees institutinga simplifiedprocurement procedure for PST2:
a decree redefiningthe functionsof the High InterministerialCommittee, extending these to include supervisionof all PST2 procurementoperations during the period 1994-98;
- a decree redefiningthe functionsof the Technical Committee,extending these to includeperformance of all operations involved in the issue of invitationsto tender, bid appraisal and analysis, and contract award;
- a decree delegatingcontract approval authorityto the Chairmanof the High InterministerialCommittee for the entire period 1994-98;
- Preparationof legislationto govern administrativeclassification of the road network.
* Approvalof the General Conditionsof Contract.
B. THE FOLLOWINGINSIITONAL MEASURES WILL BE TAKEN:
By July 31, 1993:
* Approval of all of the above pieces of legislation.
By September30. 1993:
* Establishmentof OFNAR's closing balance at June 30, 1993.
* Establishmentof SNER's opening balance at September 1, 1993. 67 ANNEXS-1 Page 4
2. TO IMPROVEMANAGEMENT OF THE ROAD NETWORKTHROUGH BETTER WORKS PROGRAMMINGAND RIGOROUSON-SITE SUPERVISION, THE GOVERNMENT UNDERTAKESTO:
(a) Transfer networkmanagement and works programmingand supervisionfrom SNER to the HighwaysDirectorate:
- prepare by June 30 each year a current and periodic maintenanceprogram, taking accountof the geographicdistribution of the stretches concernedand of the available budget resources;
- perform a yearly update of the rain gates map, aiming in particular to have these installedon rehabilitatedstretches;
- organizeannual programs for traffic counts, vehicle weight checks, and traffic surveys;
(b) Have all periodic maintenanceworks performed by private contractorsor companieswith private-type management,in accordancewith the specificationsof contracts for works concludedwith the HighwaysDirectorate.
(c) Make settlementfor all road maintenanceworks on the basis of a unit price list, paying only for those services actually performed.
AND TO THIS END THE FOLLOWINGACTIONS HAVE ALREADYBEEN TAKEN:
(a) Preparationof sample bidding documentsfor both current and periodic maintenance, consistingin each case of the SpecialConditions of Contract, TechnicalSpecifications, bill of quantities,and price list.
(b) Preparationof sample contractsfor the managementof ferries, traffic counts, and rain gates.
(c) Preparationof a manualof procurementprocedures.
AND THE GOVERNMENT UNDERTAKESTO TAKE THE FOLLOWINGMEASURES:
By June 30. 1993:
(a) Preparationof a manual of accountingprocedures, includingall accountingdocuments related to contractsfor road maintenanceand related activities. 68 ANNEX 5-1 Page 5
(b) Preparationof a system of cost analysis for works, using actual data from the maintenance contractsto determinethe unit costs and costs per kilometer of maintenancetasks according to the nature of different stretches of road.
(c) Preparationof a road maintenancestandards manual describing the types and frequency of maintenancetasks by standard of road stretch, geographiclocation, and traffic breakdown.
By June 30, 1994:
* Design an HDM-type computermodel for networkmanagement and install this at the Highways Directorate.
3. TO IMPROVECONDMTIONS AND METHODSOF IMPLEMENTATIONOF ROAD MAINTENANCEPROGRAMS THE GOVERNMENTUNDERTAKES TO:
(a) Take steps to promote autonomousadministrative and financial managementat SNER:
(b) Transfer from OFNAR to SNER the capital goods needed for its operations, to enable it to achieve the projected levels of competitiveness.
(c) Entrust SNER, by negotiatedcontract, with half of the current maintenanceprogram for the first three crop seasons.
4. TO ENSURE ADEQUATE FINANCING OF THE HIGH PRIORITYNETWORK THE GOVERNMENTUNDERTAKES TO:
(a) Assume:
100% of the cost of managementand operationof the maintenanceunits; 100% of the cost of current maintenance; 5% of the cost of periodic maintenance.
(b) Improverecovery of road user fees (road, ferry and bridge tolls, freight taxes [taxes d'affretementroutier] collected by the BNF) and petroleum taxes.
(c) Ensure fundingof the AutonomousRoad MaintenanceAccount through monthlydeposits in cumulativeannual amounts of at least CFAF 1,800, 2,000, 2,200, 2,400 and 2,600 million, respectively, for fiscal years 1994, 1995, 1996, 1997 and 1998. These resources will come primarily from road user fees and from DTS and petroleum tax revenues, in accordance with the followingdistribution: 69
ANNEX 5-1 Page 6
1994 1995 1996 1997 1998 TOTAL Ferry tolls 50 50 50 50 50 250 N'Gueli bridge toll 250 260 280 300 300 1,390 BNF freight tax 600 630 660 700 700 3,290 Sales of public works equipment 160 160 260 480 Petroleumtaxes 740 900 1,050 1,350 1,550 5,590
Total 1,800 2,000 2,200 2,400 2,600 11,000 Per month 150 165 180 200 215
5. TO CONTINUEREHABILITATION OF THE HMGHPRIORITY ROAD NETWORKAND ENSUREREHABILITATION OF THE SECONDARYRURAL ROADS LINKING PRODUCTIONAREAS TO THE NATIONALPRIORITY NETWORK, THE GOVERNMENTUNDERTAKES TO:
(a) Carry out the feasibilitystudies and detailed engineeringstudies prior to implementationof the works:
letters of invitationfor the preliminary studies and bidding documentsshall all conformto the external partners' rules of procurement;
the preliminarystudies shall take the enviromnentfactor into consideration: an impact assessmentshall be systematicallyincorporated into each feasibility study and the pertinenttechnical specificationsincluded in the works contracts;
(b) Implement the investmentprogram agreed with the external partners, and consequently:
- implementingonly the program adopted for the period 1994-98;
- asking the external partners for prior consentto all other actions, not includedin the above investmentprogram, in an annual cumulativeamount of over CFAF 200 million;
- revising the investmentprogram annuallyin consultationwith the external partners, in light of the past year's performancein terms both of program implementationand of the country's overall economicsituation;
- carrying out the rehabilitationworks in accordancewith the design and construction standards adopted. Proposals to improve these standards may be envisaged, to take account of the physical and specific environmentof a given road and of its 70 ANNEX 5-1 Page 7 consequencesin terms of sustainabilityof the works carried out (materials, erosion, etc.);
(c) Through the appropriateagencies, continueto seek financingfrom its partners for those parts of the program that are still without financing.
(d) Make availablethe counterpartfunds necessaryto successfulimplementation of the program.
6. TO REHABILITATEOR CONSTRUCTBRIDGES AND CULVERTSESSENTIAL TO THE CONTINUITYOF TRAFFICFLOW WITHINTHE PRIORITYNETWORK, THE GOVERNMENTUNDERTAKES TO:
(a) Continuethe inventory and diagnosticsurvey of bridges and culverts within the priority network during the first half of 1993.
(b) Establisha rehabilitationprogram with the Highway Data Bank taking account of the priorities and programmingof network rehabilitation.
(c) Perform the engineeringstudies of the bridges and culverts to be rehabilitatedor constructed (biddingdocuments).
(d) Implementthe program for rehabilitationof the designatedfeeder road network.
7. TO INCREASETHE CAPACITIESOF THE HIGHWAYSDIRECTORATE IN THE AREA OF SITE INVESTIGATION[GEOTECHNIQUE ROUTIEREJ TO ENSURE A MORE INFORMEDAPPROACH TO THE COMPLEXITIESAND PARTICULARITIESOF THE LOCALCONTEXT IN TERMSOF GEOMORPHOLOGY,AVAILABILITY OF MATERIALSAND OF WATER, CLIMATOLOGYAND ENVIRONMENT,THE GOVERNMENTUNDERTAKES TO:
(a) Initiate methodologiesfor laboratorytests most appropriateto the local context.
(b) Prepare display charts for use in programs to train personnel in methods of site investigation.
8. TO SET UP GEOTECHNICDATA BANKS BASEDON WORKSAND EXPERIMENTS, THE GOVERNMENTUNDERTAKES TO:
(a) Take inventoryof all documentationexisting at this date:
listingall reports of studies and all supervisionand consultancyreports publishedby the HighwaysDirectorate since 1986 concerningpaved and unpaved roads. 71 ANNEX 5-1 Page 8
listing all results of laboratorytests, whether obtainedby LNBTP, acquiredby consultantsresponsible for studies or works supervision,or furnished by contractors using their own laboratories.
- classifying,systematizing, and filing all of these documents.
(b) Monitor the post-acceptancebehavior of roads on which works were performed during PASET, focusingin particular on paved roads, and compile or update the corresponding contract compliancedocuments [dossiers de recolement].
(c) Draw up a study and research program related to road constructionprojects, and take the following steps to implementit:
- initiate pavementand materials studies, taking accountof the local context;
- participate in the design and implementationof test strips on future roads (paved and unpaved);
* initiate monitoringof these test strips during their implementationand following their acceptance.
(d) Prepare a geotechnicmap of Chad.
9. TO ASSIGN A BROADERROLE TO THE LNBTP AND DEVELOPITS TECHNOLOGICALSKILLS, ITS SPIRITOF INITIATIVE,AND ITS COMPETITIVENESS, T1HEGOVERNMENT UNDERTAKES TO:
(a) Effectivelyprivatize managementof the LNBTP and eventually set up a laboratory in the form of a private commercialcompany.
(b) Encourage the LNBTP, which will not receive any subsidizedfinancial or technical assistance, to concludecontracts for assistance, in particular with respect to management, the technicalperformance of its contracts, and the training of its personnel.
(c) Encouragethe LNBTPto adopt a more dynanic trade policy, enablingit to participate in studies, works supervision,and monitoringactivities involving the network.
(d) Encouragethe LNBTPto participate in the training seminars and programs arranged by the Ministryof Public Works and Transportation. 72 ANNEX 5-1 Page 9
10. TO IMPROVETHE QUALITYOF LINKS BETWEENTHE LNBTP, THE DIRECTORATES OF THE MINISTRYOF PUBLICWORKS AND TRANSPORT,AND THE OTHER TECHNICALMINISTRIES ACTIVE IN THE AREA OF ENVIRONMENTAL PROTECTION,THE GOVERNMENTUNDERTAKES TO:
(a) Set up a planning unit at the HighwaysDirectorate to handle relations with all other ministriesinvolved in the rehabilitationprogram.
11. TO PROTECTTHE FORESTRESOURCE AND STRENGTHENTHE REFORESTATION POLICY, THE GOVERNMENT UNDERTAKES TO:
(a) Put in place an environmentalunit attachedto the HighwaysDirectorate, to coordinate activities and in particular to monitorproject-induced environmental changes.
(b) Provide training on environmentaltopics, to ensure sustainabilityof the actions taken, and provide managerialstaff at the Ministry of Public Works and Transportationwith the basic skills in this area.
(c) Include an environmentalimpact assessmentin all road feasibilitystudies.
(d) Prepare technical specificationsfor subsequentinclusion in contracts for studies and works.
12. TO IMPROVETHE EXISTINGSITUATION BY INSTITUTINGCOLLABORATION WITH EXTERNALAGENCIES AND THE AFFECTEDLOCAL COMMUNITIES,THE GOVERNMENTUNDERTAKES TO:
(a) Coordinatestudies with the Ministry of Tourism and the Environment, and routinely consult the local communities.
(b) Supportthe regional units of the Ministryof Tourism and the Environment(Regional Forest Inspectorates),strengthening their capacitiesfor controllingwood and fauna offtake.
(c) Sensitizethe local communitiesto environment-relatedactions. 73 ANNEX 5-1 Page 10
13. TO SUPERVISETHE PROPERDEVELOPMENT OF THE PROJECTAND ACHIEVEMENTOF ITS OBJECTIVESTHANKS TO THE PROGRAMMEDACTIVITIES, THE GOVERNMENTUNDERTAKES TO CARRYOUT PERIODICMEASUREMENTS OF PERFORMANCEINDICATORS, AS FOLLOWS:
Institutionalaspec:
(a) Have six-monthlyaudit missionscheck on the progress of institutionalrestructuring and its impact on the institutions' operations.
(b) Verify the existenceof monthlyactivities reports (Divisions)and quarterly reports (Directoratesand RegionalDelegations).
(c) Verify the existenceof specific technicalreports (supervisionmissions, traffic counts, traffic surveys, etc.).
(d) Verify that the computermodel has been installed at the Bureau de Gestion Routiere.
(e) Verify that the Planning Unit and the environmentalofficer at the Highways Directorate have been effectivelyinstalled.
(f) Verify the existenceof the geotechniclibrary.
Road maintenanceand rehabilitation:
(a) Perform quarterly audits of the AutonomousAccount for Road Maintenance.
(b) Perform monthlycomparisons of actual and estimatedexpenditure.
(c) Verify the number of maintenancecontracts signed with private enterprises.
(d) Verify actual monthlydisbursement on maintenance.
(e) Verify the length of rehabilitatedroads or the number of bridges or culverts repaired or constructed.
(f) Verify actual expenditureon rehabilitation.
(g) Survey traffic on the maintainedand rehabilitatednetwork.
(h) Obtain transport production indicators(load factors, passengers and tons/km) from the Directorate of Studies and Planning. 74 ANNEX 5-1 Page 11
(i) Obtain annual informationon vehicle operating costs (economicand financial).
(j) Ascertain the economicrate of return of the work performed.
Highwayresearch and environment:
(a) Verify the existenceof the geotechnicmap of Chad.
(b) Verify the inclusionof impact assessmentsin the terms of reference for road studies.
(c) Verify the existenceof environment-relatedtechnical specifications in study and works contracts.
14. TO ACHIEVE THE ESTABLISHED OBJECTIVES THE GOVERNMENT UNDERTAKES TO TAKE THE FOLLOWING MEASURES IN THE AREA OF HUMAN RESOURCES:
(a) Perform a human resources assessmentupon completionof PASET.
(b) Perform an assessmentof the human resourcesrequired for PST2 (numbers,qualifications, etc.).
(c) Plan the human resources needed by the Governmentin order to ensure as smooth a transition as possible from the existing to the projected situation.
(d) Mobilizeexternal resources (technicalassistance) needed for implementationof the program, preferably in the form of short-term focused missions.
(e) Define the personnel managementand career developmentstructure.
(f) Perform ongoingjob/skills match reviews.
(g) Coordinateall training activitieswith a view to maximizingefficiency.
(h) Identify actions to be taken in connectionwith managementof PST2 personnel and with training.
(i) Redefinethe roles of Ecole Nationaledes Travaux Publics (ENTP) and the Centre de Perfectionnementet de Recyclage(CPT).
(j) Develop training programs covering new topics (environment,etc.). 75 ANNEX 5-1 Page 12
PRIORITYROAD NETWORK
Name of stretch Length (lmn)
Primary Priority Network
6.00 - Walia-N'Gu6li - Voie de conbournement 20.50 26.50 - N'Djam6na-Djermaya 45.50 - Djermaya-Massaguet 66.00 - Djermaya-Dandi 68.00 - Massaguet-Massakory 124.00 - Massaguet-N'Goura 104.00 - N'Goura-Bokoro 201.00 - Bokoro-Mongo 122.00 - Mongo-Mangalmc 109.00 - Mangalme-Oum Hadjer 146.00 - Oum Hadjer-Abechc 174.00 - Ab6ch6-Adre-Frontier - N 'Djam6na-Guelengdeng 144.00 160.00 - Guelengdeng-Bongor-Koyom 58.00 - Koyom-Ere-Kclo 402.50 - Guelengdeng-Sarh 603.00 - Sarh-Moundou-Lr&6 125.50 - Sarh-Maro-Sido - Massakori-Bol-Bagasola 237.50 92.00 - Ab6ch6-Biltine 154.00 - Mongo-Ati - Mbaikoro-Bedaoyo 112.50 - Moundou-Bolarobou 115.00 122.50 - Mongo-Abou Deia - Abou Deia-Am Tinman 135.00 95.00 - Doba-Gor6
SUBTOTAL 3,769.50
Secondary Priority Network
- N'Djamena-Linia-Dourbali 103.00 - Bitkine-Melfi 118.00 75.00 - Bokoro-N'Gama 98.00 - Sarh-Kyabc 60.00 - Kelo-Lai 74.00 - Koumra-Moissaia 68.00 - Koyom-Lai 72.00 - Pala-Fianga - Kemdera-Moissala 127.00 104.00 - Doba-Lai
SUBTOTAL 955.50
GRAND TOTAL 4,725.00 FINANCINGOF RoM MAINTENANCE
ANUIAL BUDGET BREAKDOWN
(in CFAF *itlions)
Name of stretch Length-km 1994 1995 1996 1997 1998 TOTAL Agent
PERIODIC MAINTENANCE BDEAC 528.0 425 425 425 425 425 2,125 Bidding CCE 715.5 650 650 650 650 650 3,250 Bidding IDA 197.5 662 721 850 960 1,085 4,278 Bidding CHAD 321 452 449 510 575 2,307 Bidding
Subtotat, Periodic Naintenice 1,'U1.0 2,058 2,248 2,374 2,545 2,735 11,90 CURRENTMAINTENANCE BDEAC CCE 715.5 326 326 327 330 330 1,639 Bidding IDA . CHAD, graveL roads 3,917.5 768 863 920 1,030 1,130 4,711 SNER+Bid CHAD, asphaltroads 526.5 130 130 153 212 232 857 SNER
SubtotaL, Cwrrent bmint 5,159.5 1,224 1,319 1,400 1,572 1,692 7,207 Chad, network mgt (*) 193 193 193 193 193 965
TOTAL net of inflationand contingencies BDEAC 528.0 425 425 425 425 425 2,125 CCE 1,431.0 976 976 977 980 980 4,889 IDA 197.5 662 721 850 960 1,085 4,278 CHAD 4,444.0 1,412 1,638 1,715 1,945 2,130 8,840
TOTAL NETWORK 6,600.5 3,475 3,760 3,967 4,310 4,20 20132 Inflation 69 231 415 645 925 2,265 Contingencies 346 379 396 434 465 2,020
GRAND TOTAL BDEAC 528.0 477 500 523 531 553 1,500 CCE 1,431.0 1,095 1,138 1,182 1,225 1,275 3,415 IDA 197.5 745 850 1,045 1,200 1,411 2,640 CHAD 4,444.0 1,555 1,885 2,043 2,431 2,770 5,483
TOTAL 6,600.5 3,872 4,373 4,793 5,387 6,009 24,434 * Operating costs: road maintenance,ferries, rain gates, traffic counts.
OQrDto z (D M
m- k_n 77
ANNEX 5-1 Page 14 HIGHWAYRESEARCH ACTION PLAN
Foreword
During implementationof PASET, 263 km of paved roads were either reconstructedor strengthened. Unpavedroads, bridges and culverts were rehabilitated.
The Governmentintends to pursue its efforts to increasethe stretches of paved and unpaved roads, and in the case of the latter to improvethe quality of works in terms of site investigation. The inadequacyor outright absence of good quality road materialsjustifies this highway research action plan.
Objectives
The objectivesare as follows:
improve the capacitiesof the HighwaysDirectorate in the area of site investigationto ensure a more informed approach to the complexitiesand particularitiesof the local contextin terms of geomorphology,availability of materials and of water, climatology,and the environment;
set up geotechnicdata banks based on works and experimentsin progress;
assign a broader role to the LNBTPand develop its technologicalskills, its spirit of initiative and its competitiveness;
improve the quality of the interactionamong the LNBTP, the Directoratesof the Ministry of Public Works and Transport, and the other technicalministries active in the area of environmentalprotection.
Actions
To achievethe above objectives,the Governmentundertakes to:
- take inventory of all study, supervisionand other reports dating back to 1986 concerning paved and unpaved roads;
- systematizethese documentsto ensure that the system used for their filing matchesthat of the Highways Directorateof the Ministry of Public Works and Transportation;
- inventorize, systematizeand file all laboratorytest results, whether obtained by LNBTP, by the consultantshired to perform studies or supervisory services, or by contractorsusing their own laboratories; 78 ANNEX 5-1 Page 15 monitorthe post-acceptancebehavior of roads on which works were performed during PASET, focusing in particular on paved roads; prepare the correspondingcontract compliancedocuments; initiate methodologiesfor laboratory tests most appropriateto the local context; prepare a geotechnic map of Chad; participatein the design and implementationof strip tests on future roads (paved and unpaved); initiate strict monitoringof these strip tests during implementationand followingtheir provisional acceptance; prepare display charts for use in programs to train personnel in site investigationmethods. 79
ANNEX 5-2 Page I
LAND AND AIR TRANSPORTACTION PLAN
Foreword
During implementationof PASET 1989-93,the transportationsubsector has undergone radical changesat both the institutionaland the sectoral level.
These radical changeshave not yet been fully incorporatedinto the day-to-dayoperations of either the Governmentor the private sector.
The overall objective of the PST for the land and air transport subsector consistsof consolidatingoptions defined and developedwithin the PASET framework, and of empoweringmanagerial and lower-levelstaffs of the hlTPT's transport divisions to assume responsibilityfor the managementof this subsector.
At the same time, particular attention will be devoted to training and sensitizationof the private sector, actions essentialto ensure the avoidanceof misunderstandingsbetween the Governmentand the transport sector operators.
Given that the transport industry is so crucial to Chad's economic life, all of the institutions, both public and private, involved in the sector will ultimatelyneed to provide initialtraining programs for their senior staff and specializedand full-time technicians, at present in woefully short supply.
Lastly, transport operations must respect the environmentand observe the basic rules of road safety.
Objectives
The objectivesare as follows;
* ensure coordinationand monitoringof the various PST activities;
* bring the regulatory framework into line with the present economiccontext;
* keep track of the fleet and its growth in order to maintainthe transport data bank and provide a basis for economicindicators;
* control fraud, introducebasic safety habits and install a more regular system of tax collection;
* update the files; 80
ANNEX 5-2 Page 2
* monitor the developmentand economicimpact of measures taken, or to be taken, in the transport sector;
* facilitatetransport documentcontrol by routing all vehicles through a designatedhub [centre d'echange routierl;
* update BNF's 1992 accountingsystem;
* implementa staff training plan;
* negotiate new reciprocity agreementswith Cameroon;
* concludean agreement with Nigeria; * ensure smoothtransition between the two systems;
* implementthe recovery program for Air Tchad; e update the regulatoryframework governing civil aviation and the functions of the Directorate of Civil Aviation.
Actions
To achievethese objectives, the Governmentundertakes to: e assign a transport adviser to the MTPT General Directorate;
* update overland transportationlegislation by April 30, 1993; i put in place an operationaldata processingsystem capableof issuingthe various transport- related documents;
* set up an InterministerialCoordinating Committee linking the differentdepartments responsiblefor road inspection;
* by November30, 1993, develop a managementassistance plan for SMEs in the transport sector;
* construct a hub [centred'echange routierl at N'Djamena;
* put in place an accountingplan at BNF, and recruit and train a qualified accountantto keep the accounts and perform quarterly financial audits;
* implementa managementtraining plan for SMEs in the transport sector; 81 ANNEX 5-2 Page 3
* by December31, 1993, develop transit reciprocitynegotiations with Cameroon and Nigeria;
* adopt measures, legislativeprovisions and deadlinesfor performanceof the UDEAC agreements, by January 31, 1994;
* implementa recovery program for Air Tchad that will enable it to regain financial equilibrium, redefine its trade policy within a national, internationaland interregional context, and initiate performanceof a managementcontract by December 31, 1993;
* develop the Chadian Code of Civil Aviation and reorganize the functions of the Directorate of Civil Aviation;
* formulate a short- and medium-termcivil aviation developmentpolicy. 82 ANNEX 5-3 Page 1
ENVIRONMENTAL ACTION PLAN
Foreword
Attentionto environmentalconsiderations in transport sector projects should make it possible to improve investmentquality. Environmentaldata, like technical and economicdata, should be available for the Government, as contracting authority Imaftred'ouvragel, to use as pointers throughoutthe project cycle.
Objectives
The objectivesare as follows:
minimizeconstraints, in particular through better protection of the forest resource and strengtheningof the reforestationpolicy when road works are to be performed;
minimizethe negative impactof environmentally-motivatedchanges through better project design and greater collaborationbetween government agencies and local communities.
Actions
To achieve these objectives, the Governrmentundertakes to:
- put in place an environmentalunit attached to the Highways Directorate, to coordinate activitiesand in particular to monitorproject-induced environmental changes;
- support the regional units of the Ministryof Tourism and the Environment(Regional Forest Inspectorates)to strengthen their capacitiesfor controllingwood and fauna offtake;
- sensitizethe local communitiesto environment-relatedactions;
- provide training on environmnentaltopics, to ensure sustainabilityof the actions taken and provide managerialstaff at the Ministryof Public Works and Transportationwith the basic skills in this area;
- include an environmentalimpact assessmentin all road feasibilitystudies;
- prepare technicalspecifications for subsequentinclusion in study and works contracts;
- coordinatestudies with the Ministryof Tourism and the Environment,and routinely consult the local communities. 83
ANNEX 5-4 Page 1 ACTION PLAN FOR PRIVATE SECTOR DEVELOPMENT
Foreword
In developingthe private sector, the Governmentintends to facilitate the emergence of small- and medium-scaleenterprises qualifiedto carry out road maintenanceand rehabilitationprograms.
The existenceof a favorable political, legal and economic context is essentialto expansion of the Chadian private sector. The Governmenttherefore intends to adopt practical measures and administrative,financial and technicalprocedures that will lead to prompt solution of the problems encounteredby local contractors.
Objectives
The objectivesof this action plan are:
improve the productivityof governmentagencies in order to establish optimum relations between those agencies and the private sector;
promote private initiativein the areas of public works and transportation;
improve the performanceof the parapublic enterprisesto make them competitiveand prepare them for privatization.
Actions
To achieve these objectives, the Governmentundertakes to:
- improve organization, operationand supervisionof the financial circuits, so as not to hold up contractors' payments;
- extend to implementationof PST2 the same regulatoryprovisions and procurement procedures used for awardingthe project preparation studies;
- enact the necessary legislation(General Conditionsof Contract)to ensure coherent managementof works contracts;
- organize external and internal audits of financingoperations;
- dissolve OFNAR and set up the Societe Nationaled'Entretien Routier, with a private-type managementstructure;
- open up the capital of LNBTP to private sector participation; 84 ANNEX 5-4 Page 2 actively pursue the recovery of Air Tchad, take steps to ensure sustainableconsolidation of its operating equilibriumthrough conclusionof a partnership agreement, and open up its capital to the private sector; sell its shares in the capital of SOTEC to Chadian private citizens, in accordance with a timetable renegotiatedwith the company's external shareholder; provide technicalsupport and develop training programs for Chadian SMEs; assign to the Ministry of Public Works and Transportationthe functionsof delegated contractingauthority [mattred'ouvrage d6ligu0l and engineer [mattred'oeuvre] for maintenanceworks on cotton feeder roads that are to be performed under private contract; open up the road maintenancemarket to SMEs, includingprovisions for subcontracting [tdcheronnagel,through appropriateworks packaging. 85
ANNEX55 Page 1
HUMAN RESOURCE MANAGEMENT ACTION PLAN
Foreword
From the analysis of the summary reports prepared, particularly in 1992, it appears that adoptionof an overall personnelmanagement strategy is absolutelyessential in the present context.
The higher levels of performancerequired of both Governmentand private sector personnel will require a more rigorous approach to career development,with greater attention to staff qualifications and assignments.
Objectives
The objectivesare as follows:
- plan the human resources needed by the Governmentin order to ensure as smooth a transition as possible from the existingto the projected situation;
- perform ongoingjob/skills match reviews;
- streamlinepersonnel managementprocedures;
- coordinate all training activitieswith a view to maximizingefficiency.
Actions
To achievethese objectives,the Governmentundertakes to:
- study a human resourcesmanagement plan (overall assessmentof resources existing and required, definitionof ENTP's role, definitionof the detailed objectivesof the management structure);
- install and update a file of the staff of the Ministry and its various agencies;
- perform ongoing staff performanceevaluations;
- define rules of management(recruitment, new staff regulations);
- establish a forward managementsystem as a basis for the preparation of recruitmentand training plans; 86 ANNEX 5-5 Pag 2 extend in-servicetraining programs to new agencies (particularlythose of an administrative and financial nature); strengthen action already initiatedwithin the PASET framework in the road and transport sectors; develop training programs on new topics (the environment, for example); support the Centre de Formationet de Perfectionnementto enable it to expand its actions, aiming primarily at the private sector; redefine ENTP's functionsand objectives in light of the results of the planned study. 87
ANNEXC Page 1
ACTION PLAN FOR REGIONAL INTEGRATION AND TRANSIT FACILITATION
1. Transport and regional transit facilitationin Chad has been naturally constrainedby its landlocksituation and by its dependanceon transit services from neighboringcountries ( in particular Cameroonand Nigeria). In spite of substantialprogress made in liberalizationand competitiveedge in recent years (liberalizationmeasures taken under the TSAIP), the Chadian transport industry suffers from severe constraints of both regional and natural character.
2. Since the UDEACTreaty came into force, there have been no successful efforts to facilitate regional transport among member countries. Individualactions have proliferated; but the potential benefits of such national actions has been neutralizedby regional vested interests or by interests of groups or institutionswhich run counter to the efficiencyof transport, to the liberalizationof trade, and in general to the integrationof practices, documentsand procedures.
3. National regulationsshow substantiaidisparity between UDEAC countries dependingon original legal models, date of adaptationand latest amendments. All regulationshave diverse weights and dimensionsstandards. In addition, national regulationshave priority of observance. Both the UDEAC regulationsand national regulationsare not adaptedto modem multimodaltransport technical developments and are, therefore, restrictive.
4. The most important effects of this disparity are high cost of services and transit delays. The cost of regionalnon factor services on imports was estimatedin 1989-1990to be 16% for Cameroon, 39% for Chad, and 31% for Central Africa.
5. Aggregatetotal transports costs through the Cameroon corridor (includingfreight-forwarding fees) for freight travelling to the Central African Republic are estimatedbetween 1.2 and 2.6 billion CFAF per year and between 980 million and 1.5 billion for Chad.
6. At present, the consequencesof the trade and transport logistic issue in Chad and in the region may be summarizedas follows:
(a) generalizedcost of transport raising the cost of imports and exports and short cutting competitiveness;
(b) substantialfinancial cost of trade due to immobilizationof freight in transit;
(c) inefficientutilization of equipmentand facilities;
(d) substantialfiscal losses in terms of import duties; taxes, etc.;
(e) growth of parafiscal remunerationsto parasite institutionsnot contributingto economic growth; 88 Annex 6 Page 2 (f) lack of confidencein legal channels; and
(g) discouragementof import substitutionof non-factortransport and insurance services (freight forwarding).
7. A strategy and plan of action contained are structured in agreement with the specific needs of Chad but fall within the broader objectivesof regional road transport industry development. In considerationof the proposed introductionof the TIPAC (Transit Internationaldes Pays de l'Afrique Centrale) as a result of the joint ECC (European CommunityCommission), World Bank initiativeof UDEAC regional integration, the road transport industry in Chad should undergo substantial improvementif it is to remain competitivewithin the region. The strategy proposed for the TSP and the plan of action encompassassistance to both the road transport industryto the institutionsresponsible for transport operations.
8. The developmentstrategy falls within the followinggeneral parameters:
(a) define and strengthen civil and commercialresponsibilities and liabilities of road transport operators with a view to integratingthe Chadian road transport industry within the responsibilityand liabilitylegal framework of regionaltransport;
(b) strengthen the institutionalcapacity of the DTS, Conseil Consultatifdes Transports, and BNF with a view to providinga coherent institutionalframework for private sector developmentand to improvinginformation and fiscal collectionchannels;
(c) encourageprivate sector associationsof operators (groups d'interet economique)with the objective of: (a) providing road transport operators with economiesof scale for the procurementof inputs; (b) channelingfinancial assistance for vehicle rehabilitation;and (c) channelingprofessional training to the road transport industry;
(d) provide financial assistanceto the road transport industry for vehicle rehabilitationand facilities, with a view to allow Chadian road transport participationin the TIPAC regional system; and
(e) link provisionof financial assistanceto the private sector small and medium enterprises (road transport) to access to professionaltraining, and provide human resources development for both private and public sector.
9. The Plan of Action contains the followingmeasures proposed with the objective of increasingthe efficiencyof road transport by combiningthe Governmentcommitment to provide better transport services with the interest of the private sector operators; the proposed plan of action will be monitoredthrough measurableindicators proposed in a matrix shown in Annex_
InstitutionalMeasures: 89 Annex6 Page 3
(a) define the objectivesand role of public institutionsrelated to road transport development,in particular DTS, and Comite Consultatifdes Transports;
(b) assist the above institutionsand develop their human resource capabilities;
(c) update and harmonizeroad transport legislationin the national and regional context; in particular harmonize liability, vehicle standards and security requirementswith regional and internationalrequirements (when appropriate);
(d) draft a road safety policies and regulations; and
Private Sector DevelopmentMeasures:
(a) promote road transport associations;
(b) encourageprofessional training by linking improvementin managementof small and medium enterprises and accounting;
(c) promote private sector investmentin joint industryterminal facilities.
TechnicalMeasures:
(a) create a vehicle Inspectioncontrol center in N'Djamena;
(b) encouragerehabilitation of econimicallyviable vehicles. 90
Annex 6 Page 4 Plan of Action: Monitoring Indicators
Monitoring Indicators Timing
I) Institutional Measurmc
(a) Define objectivea and role of public tnnsport (i) Adopting of adminiatrativeand/or (1) prior to TSP nIeffectiveneas institutions (DTS, Comite Consultatif des legal instruments defining objectives and Transports) role of DTS andComite Consultatif
(b) Development of transport institutions humsn (i) drafting a blue-print of appropriate (i) prior to TSP n effectivenes resource capabilities training and profeusional development measures in accordance with TSP II parameters and donors capabilities (ii) agreeingwith Bank and with donors on human resourceadevelopment actions (ii) following TSP U effectivenea (iii) implementing human resource progranms iii) one year after TSP n effectiveness
(c) Harmonize road transport legialation in the (i) drafting liability, vehicle standardsand (i) in agreementwith the timing of national and regional context: security standardsproposala in TIPAC implementation agreements to be - liability requirements coordination with the ECC/World Bank aignedby 1993 - vehicle standardt TIPAC initiative, with a view to - secufity requirements harmonize road transport legialation on a regional basis (ii) enscting national legislstion in accordance with recommfendationsof (ii) at the time of TIPAC implementation TIPAC implementation; protocol to be as a full transit systemearly 1994 signed by 1993 (iii) signing nd executingproposed (iii) horizon of 1995 legialation
(d) Draft a road safetypolicies and regulations C')As for (1)(r)(ii)(iii) above Ci)As for (l)(c)(i)Cii)(ii)
(e) Draft and implement technical control of vehicle (i) Drafting of regulations and actng on Ci)Prior to TSP H effectiveneu regulations vehicle technical control facilities decision as part of TSP 11 implementation CiH)Setting-up vehicle technical control facilities andapproving corresponding (ii) Following TSP 11effectiveneu regulations (iii) Enforcing tochnical control of (iii) Two yers after TSP [ effectivenea vehicles
2) Private Sector Development Measures
(a) Promote road transport associations (i) Agreement with ECC and Worid Bank (i) in agreement with the tiding for on financial intermediation to private TIPAC implementation ector as part of TIPAC implementation
(b) Encourage professional training (i) Agreement with ECC and World Bank (i) As part of the TEPAC irnplementation on a mechanism to liak acceu to credit facilities to professional trining
(c) Encourage private sectorinvestrmnt in joint (i) Preparation of a program to facilitate Ci)As part of the TIPAC implenentation industry terminal facilities acces to ECC and World Bank credit, directed to private secto opertors wishing to invest in joint industry terminal facilites
(3) Technical Measures
(a) Create a vehicle inspection contrl center in (i) Feasibility sudy for proposed facility (i) Following TSP U project effectivene" N'Djamena Gti)Acdng on proposah in agreement CiH)Early 1994 with TSP U implementation schedule 91
Annex 7 Page 1
TECHNICAL DESIGN STANDARDS FOR ROADS
GeometricalStandards
The geometrical standardsapplicable to the road system in the Republic of Chad are illustrated in diagrams 2/1 and 2/2.
For paved roads, distinction is made between rural sections, and the urban sections of national highways.
For unpavedroads, standards are based on a certain level of heavy vehicle traffic (DLW exceeding 3T). 92
Anex 7 Page 2 DIAGRAMNo. 2/1
GEOMETRICALSTANDARDS
PAVED ROAD Crovnwd h. 8 m.
A) RURAL
Fine 3o3 = ' Roadbass ) N SE Nub -base 2 h l I ,-NG I \2-
SLf gradew.1m.
Flatrne sols I ' ' ng- 'm/
ICrownwkih . S m.
Laterite 3ols0i13nw6m
pnZ 5 | | | > ~~~~~~~~~~Usurfacedshodder
_ , ~~~~~~~~~~~~~Roadbass
3/ /~~~~~~~~~~~~~~~~~~~~u Sbase-
774 1 I ~~~~~~~~~~~~~~~NG\/2
l ~~~~~Sib- grad w 9.59Om'.
B ) URBAN SECTION
Cta&g 71 m. , Sh. wo
I t' Subbrgw-7m. 1~~~~~~~~~~~~Su -basswihz 93
No. Agnex 7 DIAGRAH 2/2 Page 3 GEOMETRICAL STANDLARDS
UNPAVED ROAD
Level 1 0-5 HV/DAY CCmwifutu6m. IWeascouUeu1520Ocm.
<~~~~~~~tr reuedt 10-15Xm. <
Su -ngradeSw a 7m.
S Y32for iat bwmaions 2V1crotr sois Level 2 5-10 HV/DAY
Cn>e wif.68M. 1-ow~ ' -~dm -______i 'l.Wear gouu th25-30cm.
/ | ~~~~~~~~~~~Sub-gadew.-9 m. \
Levels 3 to 5 over 10 RV/DAT
Cmaw wi 9gm
W, Ii,h hco.-. 2u0t30 35cm.
Sub- guow.10 l 94
Annex 8 Reseau Prioritaire
Designationde I 'inzineraire Longueurs (kn)
Reseau routier Prioritaire Primaire
- Walia-N'Gueli 6,00 - Voie de contournement 20,50 - N'Djamrna-Djermaya 26,50 - Djermaya-Massaguet 45,50 - Djermaya-Dandi 66,00 - Massaguet-Massakory 68,00 - Massaguet-N'Goura 124,00 - N'Goura-Bokoro 104,00 - Bokoro-Mongo 201,00 - Mongo-Mangalme 122,00 - Mangalme-Oum Hadjer 109,00 - Oum Hadjer-Abeche 146,00 - Abch-Adr&-Frontiere 174,00 - N'Djamena-Guelengdeng 144,00 - Guelengdeng-Bongor-Koyom 160,00 - Koyom-Ere-Kelo 58,00 - Guelengdeng-Sarh 402,50 - Sarh-Moundou-Lere 603,00 - Sarh-Maro-Sido 125,50 - Massakori-Bol-Bagasola 237,50 - Abeche-Biltine 92,00 - Mongo-Ati 154,00 - Koyom-Ere-Kalo 58,00 - Mbaikoro B6daoyo 112,50 - Moundou-Bolarobou 115,00 - Mongo-Abou Dela 122,50 - Abou Dela-Am Timan 135,00 - Doba-Gore 9S0
Sous Total 3769,50
Reseau routier Prioritaire Secondaire
- N'Djamena-Linia-Dourbali 103,00 - Bitkine-Melfi 118,00 - Bokoro-N'Gama 75,00 - Sarh-Kyab6 98,00 - Keio-Lal 60,00 - Koumra-Moissaia 74,00 - Koyom-Lai 68,00 - Pala-Fianga 72,00 - Kemdera-Moissala 127,00 - Doba-LaT 1040
Sous Total 955,50
TOTAL GENERAL 4725,00 ANNEX 9 Page 1
Second Transport Sector Project
Procurenent Plan
Call Bid Award Contract Implementation for offers opening approval starting
10/15/93 10/30/93 Bridge rehabilitation study 5/15/93 7/15/93 8/15/93
1/15/94 1/30/94 Detailed Engineering for 8/31/93 10/30/93 11/30/93 secondary road rehabilitation
9/30/93 10/30/93 Technical assistance to MTPT 5/31/93 7/15/93 8/15/93
9/30/93 10/15/93 Civil works supervision 5/31/93 7/31/93 8/15/93
9/30/93 10/31/93 Road maintenance works (IDA-1) 5/311/93 7/31/93 8/15/93 9/30/93 10/31/93 Road maintenance works IIDA-2) 5/31/93 7/31/93 8/15/93 9/30/93 10/31/93 Road maintenance works (IDA-3) 5/31/93 7/31/93 8/15/93 9/30/93 10/31/93 Road maintenance works ICHAD-1) 5/31/93 7/31/93 8/15/93 9/30/93 10/31/93 Road maintenance works (CHAD-2) 5/31/93 7/31/93 8115/93 9/30/93 10/31/93 Road maintenance works (CHAD-3) 5/31/93 7/31/93 8/15/93 9/30/93 10/31/93 Road maintenance works (CHAD-4) 5/31/93 7/31/93 8/15/93 7/31/93 9/30/93 Other maintenance contracts {CHAD)
5/31/95 9/30/95 Secondary road rehabilitation (IDA-1) 1/15/95 3/15/95 4/15/95 5/31/95 9/30/95 Secondary road rehabilitation (IDA-2) 1/15/95 3/15/95 4/15/95 96 ANNEX 10 Page 1
SecondTransport Sector Project
Training Program
ACTIONS INDICATORS IMPLEMENTINGAGENCY MONITORINGMETHOD
Training for public - 11 training for Pubiic Works staff - Human resources unit - Physcalsupervision sector staff - 22 trainings fir Transport & Civil IDAF/MTPT) & extemal audits Aviation staff - Progressreport - 13 seminarsfor lower staff PWITAC - Human roeources unit - Extemal audits (DAF/MTPT)
Support to privato - 5 training for high level staff - Human resources unit Specific audits contractor 30 mechanical seminars (40 por.) (DAF/MTPT) on performance target - 6 seminarsfor manager (6 pet.) - Training for lower staff (150 road toehnk - Training center and lower staff at N'Damena) Progressreport - Training for small contractors Troining oenter Physoal supervision 50 staff per year in accounting, management and mechanic - Training for medium level stoff Ecole Nationale doc TP (60 pars.)
Support to private Mechanical and driving seminar Training oenter - Specific audits smalltruckers with private PW staff Progressreport - Seminar for management/accounting Servido Ressouroee to 10 small truckers (80 par.) Humaines(DAF/MTPT) 97
; | X~~~~~~~~~~~ MINISTERE DES TRAVAUX PUBLICS ET DES TRANSPORTS (Services centraux)
INSPECTION CENERALE DIREC|ON
.~~~~~~~~~~~~~~~~~~~~~~Csr .. D.r.b
j InCATtOND C LA l DIRECTION l l DC SUBACC l NRCCT l DIRECTION DIRECTION DIRU C TIO .:tTuD95 ICT DISDiTRA14SPORTS ~~~~~~~DtLAVAOD I VILE DES TRAVAUXI DE LURSANISM DU CADflA11RE T DE LA PLAMI AT" "ACE ~~~~~~~~~~~~~~~~~~~DeILATIMINTS CIVILS ET DE LUHA*17AT DC LA CAR OGRAIPHII NOTES
NOTES
MAP SECTION
'6.I. 2' 212 24 N ~~~~~~~~~~~~~~~~~~~~~~~~~~~CHADARAB >- \ ' \ \SECONDTRANSPORT SECTOR REP. PROJECT(TSP 11) OF
by 22 \ ,goh PnordyPobdR.6*d NMb 1993 EGYPT
'm on Pg_d Ro.d,
\l - T.oo-o- 5y Ro=d Nb-4 . b. R4.6ood Llnd.r TPS i
' '' BYA' i _ Rrldgo t be 8.9200.4sl d LIBYA ArpASeO-y 44h tb RR.hod il.nd
Rood Nnt-okm tt \ 20^? 9_r/todo gi d J
NIGER - P Eok{d Mino, E.00 T-,ok
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CENTRAL(
CAMEROON .'AFRICANI I
NIGER ) .7,~~~~~~~~~~~~~~~~~~~~~W
2 oSoiw t , Atod , j
K \o d > , ,X ; 70SUDAN
rf~~~~~~~~~~~~~~~~~~~~~~~~~~~~o 0010,40t^,0
NIGERIA t neCI4 1 (012
- 4 _~~~~C.^d Ali
Ii 0*. oonoooondA.T-
s <~~~~~~~~~~~~~~~~~~~-s
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