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World Bank Document INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: ISDSC9381 Public Disclosure Authorized I. BASIC INFORMATION A. Basic Project Data Country: Africa Project ID: P148853 Project Name: EA Regional Transport, Trade and Development Facilitation Project (Second Phase of Program) (P148853) Task Team Tesfamichael Nahusenay Mitiku Leader(s): Public Disclosure Authorized Estimated 23-Mar-2015 Estimated 110Jun-2015 Appraisal Date: Board Date: Managing Unit: GTIDR Lending Investment Project Financing Instrument: Sector(s): Rural and Inter-Urban Roads Highways (55P), Public administration- Transportation (20%), General information and communications sector (15%), General industry and trade sector (10%) Theme(s): Trade facilitation and market access (50%), Regional integration (30%), Infrastructure services for private sector development (20%) Financing (In USD Million) U Total Project Cost: 578.00 Total Bank Financing: 500.00 Public Disclosure Authorized Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 78.00 International Development Association (IDA) 500.00 Total 578.00 Environmental A - Full Assessment Category: Is this a No Repeater project? Public Disclosure Authorized B. Project Objectives 13. The objective of the Second Project is to enhance regional connectivity and integration of Kenya with its Eastern Africa neighboring countries, and South Sudan's access to sea ports. 14. The proposed project helps the north western part of Kenya and south eastern part of South Sudan to boost export oriented agricultural development by facilitating increased agricultural production along the Juba - Eldoret corridor, endowed with abundant natural resources, through improved transport, trade facilitation, ICT access, as well as the development of export processing O U zones. The proposed program contributes to the overarching goal of facilitating and lowering the cost of intra-regional trade to support regional cooperation and integration of economies in the sub-region. 15. The overall program will be implemented in a series of three projects (SOP). The first project of the program (Phase 1), focused on South Sudan has been approved in May 2014, and supported the improvement of part of the Juba-Nakodol road in the territory of South Sudan and implementation of trade and development facilitation measures, including a new fiber optic link. This second project -Phase 2- will focus on the improvement of the road infrastructure and implementation of trade and development facilitation in the Kenyan territory. The third project - Phase 3- will focus on enhanced support to trade facilitation measures along the Juba-Nakodol- Eldoret corridor and completing the upgrading of the Juba-Eldoret road. This Project Concept Note applies to SOP 2 - the second project. C. Project Description KENYA 17. Component 1: Upgrading Critical Road Infrastructure (US$300 million). This component will support the upgrading of approximately 270 km of the Nadapal-Lockichar road section of the Juba-Nadapal-Eldoret Corridor and related supervision costs. 18. Component 2: Facilitation of Regional Transport, Trade and Development (US$20 million). This component supports promotion of sound transport, trade and development facilitation measures, increasing the efficiency of the corridor. This includes: Sub-component 2(a): Support to KRA in the implementation of transport, trade and development facilitation, including: (a) harmonization of customs procedures; (b) Establishing One Stop Border Post (OSBP) at the Kenya side of Nadapal, through a design-build (DB) arrangement; (c) the provision of advisory services and equipment for the strengthening of the cross-border management unit of KRA; and (d) Support to the implementation of an integrated border management system. Sub-component 2 (b): Support to KeNHA, including: (a) Support to corridor performance monitoring; (b) Support to national corridor management committees; (c) Enhancing social infrastructure and social services delivery, including Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome (HIV/AIDS) prevention, and Road Safety along the corridor. Sub-component 2 (c): Support to MoTI, including: (a) Support to provision of site and services at rest stops, export processing zones and storage facilities, as well as certification of export products and simplifying the process for import-export, in the Kenyan territory; and (b) Connecting export processing zones, rest stops and community centers and service centers along the corridor with ICT, in the Kenyan territory. 19. Component 3: Institutional Development and Program Management (US$5 million) Sub-component 3(a): Strengthening of KeNHA's and MoTI's institutional capacity through the provision of advisory services and training. Sub-component 3(b): Provision of advisory services, training and logistical support, including office equipment, materials and supplies, and Operating Costs as required to sustain the management and coordination of Project implementation activities, including audits, and monitoring and evaluation of O the execution of the Project. 20. Component 4: Connecting Nadapal with Fiber Optics (US$5 million). Construction of a fiber optic cable, alongside the part of the Juba -_Eldoret road located in the Recipient's territory, between Nadapal and Lokichoggio, and rehabilitation of the fiber optic between Marich Pass and Lokichoggio in the Republic of Kenya. 21. In parallel with the implementation of the second project in Kenya, South Sudan will implement upgrading of critical infrastructure, as well as trade and development facilitation activities, under the first project and other development partner's support. In addition to completing the upgrading of the road section in the South Sudan territory, the establishment of an OSBP and overloading control weigh bridge at Nadapal, as well connecting export processing zones, rest stops and community centers and service centers along the corridor with ICT, in the territory of South Sudan will be implemented under the third project, anticipated to start in 2017., The Third in a Series of Project: 22. Support for upgrading of road infrastructure (Investment requirement to be determined depending on the resources to be leveraged for the second phase-up to US$750 million). This includes: (a) Upgrading of the Juba-Nadapal corridor in South Sudan - Upgrading of the remaining section between Torit and Nadapal road from the first phase. The African Development Bank (AfDB) is expected to support the upgrading of Torit - Lobira (about 70 km - US$100 million), while the European Investment Bank (EIB) may provide support to the upgrading of part of the Kapoeta- Nadapal section. The total cost required to complete the road upgrading in the South Sudan territory is estimated at about US$300 million, including the contribution from AfDB; O (b) Asset management contract to maintain the sections upgraded under design and build o arrangement in South Sudan; and (c) Support for the Upgrading of the remaining sections of Nadapal-Eldoret road in Kenya - Support to the upgrading of approximately 170 km of the Lodwar -Marich Pass section of the Juba- Nadapal-Eldoret corridor (US$200 million). The Nadapal-Eldoret road which will not be under upgrading contract will be maintained by KeNHA to ensure all season passability. The section between Marich Pass and Eldoret estimated at US$200 million is expected to be financed by Japan International Cooperation Agency (JICA). The European Union (EU)/EIB and AfDB have also expressed interest to provide support to part of the road between Lodwar and Marich Pass that will not be financed by the World Bank. (d) The third project would also focus on enhanced support to trade and development facilitation measures along the Juba-Eldoret corridor, while completing the upgrading of any remaining sections of the road. 23. The first project focused on supporting the upgrading of part of the road sections in South Sudan territory and implementation of trade and development facilitation measures. The total cost was estimated at US$255 million. The Provisional Scale of the overall Program is estimated at about US$1.3 billion. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Considering the sequence of the three projects as described above, the physical characteristics of the proposed project are as follows: 11. The proposed road segments within Kenya boundary, Eldoret- Nadapal, to be upgraded under the proposed program is about 595 km and is on the main road corridor linking Tanzania, Kenya and South Sudan. It runs in South-North direction on the Western part of Kenya. The southern part of the general area of the road is densely populated and with high agricultural potential. The road also passes through two large towns Eldoret and Kitale. The northern part, bordering South Sudan is largely sparsely populated and less developed. The section from Eldoret to Lokichoggio is paved, while the Lokichoggio-Nadapal section is unpaved. The improvement will be carried out within the existing right of way. Part of the Nadapal - Marich -Eldoret road is expected to be financed by the World Bank and other development partners in the second project and the remaining part will be upgraded in the third project. 12. The Juba - Nadapal- Eldoret road traverses the south-eastern part of South Sudan and north- western part of Kenya. The section in South Sudan, the Nadapal to Juba Road is an interstate road that links the Central Equatoria and Eastern
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