AFW CM DEVELOPM ENT BANK

PROJECT COA LETION REPORT m ALM AYO-EBOLOW A ROAD REPUBLIC O F CAM EROON

O ASTRUCTURE AND O USTRY DEPARTG NT JULY, 1994 TABLE OF CONTENTS Pages

PROJECT BASIC DATA i-iv

W TRODUCN ON

1 . 1 General Context 1 1.2 n e Transport System 1 1.3 Trnnp ort Policy and Coordination 4 1.4 Bnnk Group Operations in the Sector 4 1.5 Sources of Information 5

2. PROJECT IDENX CATION . PREPARATION AND APPRM SAL 5

2.1 Identitk ation 5 2.2 Preparation and Appraisal 5 2.3 Targets and Objectives 6 2.4 Project Description 6 3. PROJECT IM PLEG NTATION AND COST 6

3. 1 Effectiveness and Take-off 6 3.2 Project Modifications 7 3.3 Im plementation Schedule 8 3.4 Reporting 9 3.5 Procurement of Goods and Services 9 3.6 Project Cost 10 3.7 Disbursements and Sources of Financing 11 3.8 Performances of the Consultant, Contactor, Executing Agency and the Borrower 13

4. M U TENM CE STRUCTURES 14

5. ECONOM IC RE-APPRM SAL 15

5. 1 Generalities and M ethodology 15 5.2 Traffic 16 5.3 Vehicle Operating Costs 17 5.4 M aintenance Costs 18 5.5 G onomic Rate of Return 18 5.6 Socio-economic Impact of the Road 19 6. PERFORM ANCE OF THE BANK 20

CONCLUSIONS 20

7. 1 Conçlusions 20 7.2 H ssons 21

This project completion report was written by Mr. G. MBESHERUBUSA, (Civil Engineer) and M rs. N. SENOU (Transport G onomist) following their mission to in July 1993. The D ivision Chief concem ed is M r. A .B. SEM ANOU , SISI ext. 4119. REPUBLIC OF CAM EROON

M balm avo-Ebolowa Road Proiect

LIST 0F ANNEXF,S

Annex 1 M ap 1 Annex 2 Sources of Inform ation 1 Annex 3 Traftk Projections 1 Annex 4 G onomic Appraisal 2 C. PERFORMANCE INDICATORS 1. Cost Overestimntion 69% Num ber of extensions of last date of disbursem ent None % Delay of com pletion date 28%*** 2. Project implementation status Com pleted Date of project tnke-off 11 November 1988 Project completion date 15 M ay 1991 3. Performance of structures ' Unsatisfactory 4. Perform ance of the coneactor Satisfactory 5. Performance of the consultnnt Satisfactory 6. (%) ERR AP = 12.5% PCR 13.43%

* UA 38.47 M : disbursed. UA 0.17 M : provision for disbursement request in abeyance as at 21/9/93. ** Expropriations : UA 1.17 m illion. *** Since loan approval. (i) EOUIVALENTS AND ABBREW ATIONS Currencv Enuivalents

Ex ante evaluation (Oct./Nov. 1985) Ex-oost Evaluation (3rd Ouarter 1993)

C= . unit = CFA Franc (CFAF) Currency urlit = CFA Fmnc (CFAFI 1 FUA = UA 0.921052 1 FUA = 0.921052 1 UA = SDR 1 1 UA SDR 1 1 CFAF = UA 0.0024 1 CFAF = UA 0.0025 1 UA = CFAF 415.2575 1 UA = CFAF 399.675 1 UA US$ 1.05940 1 UA = US$ 1.41840

W EIGHTS AND M EASURF,S

1 ton (t) 2.205 1bs 1 kilogrnmme (kg) 2.205 pounds (1bs) 1 kilometre (km2) 0.612 m ile 1 sq. kilometre (1m7) 0.3861 sq. m ile 1 hectare (ha) = 2.471 acres 1 metre (m) 3.29 feet (ft)

F- inancial Year- 1 July - 30 June

ACRONYM S AND ABBREW ATIONS

ADB African Developm ent Bnnk BDEAC Banque des Etats de l'Afrique Cen% le CM Caisse Autonome d'Am ortissement CAM M R Cam eroon Airlines VOC Vehicle Operating Costs DGTC Direction des Grands Travau du Cameroun Highways Directorate ADF African Developm ent Fund CEL Civil Engineering u boratory M A TGENY Parc National de M atériels de Génie Civil M OT M irlistry of Transport M inistry of Public W orks M UA M illions of Unit of Account ONPC Oftk e National des Ports du Cameroun TSP Transport Sector Project PCR Project Completion Report REGIFERCAM Régie Nationale des Chemins de Fer du Cameroun SOTU C Société de Transpprt Urbain du Cameroun ERR Econom ic Rate of Return (ii)

PROJECT BASIC DATA

1. COUNTRY Republic of Cam eroon 2. PROJECT M balmayo-Ebolowa Road 3. LOAN NUM BER CS/CM /TW 86/015 4. BORROW ER Governm ent of the Republic of Cam eroon 5 BENEFICIARY Govem m ent of the Republic of Cam eroon 6. EXECUTING AGENCY Highway Directorate, M inistry of m uipment/ Direction des Grands Trakaux du Cam eroun

A . LOAN

Estimate at almraisal Acm al

1. Loan Request 29 M ay 1985 2. Am ount 47. 15 m illion UA 38.64 million 3. Interest Rate 8.75% 8.75% 4. Repaym ent Period 20 years 20 years 5. Grace Period 5 years 5 years 6. Date of > an Negotiation 12 September 1986 7. Date of Loan Approval : 22 September 1986 8. Date of Loan Signam re 2 February 1987 9. Daye of Loan Effectiveness 13 October 1988

B. PkOJECT DATA Estimate at aopraisal Acm al

1. Total Cost (UA million) 71.77 43.58

2. Financinz Plan

(UA m illion) F.E. L.C. -TQta1 F.E. L.C . Total

- ADB 47.15 47.15 29.30 9.34 38.* * - GOVT. IIBRDI - - - 4.19 4.19** - GOVERNM ENT - 24.62 24.62 0.75 0.75 47.15 24.62 71.77 29.30 14.28 43.58

3. Deadline for flrst disbursement 30 June 1989 4. Deadline for last disbursement 31 Decem ber 1992 5. Actizal date of flrst disbursement 20 October 1988 6. Acm al date of last disbursement 27 NoveïY r 1M * 7. W orks tnke-off October 1986 11 Novem ber 1988 8. Com pletion date of works Decem ber 1989 3 July 1991 (iii) D . M ISSION

Dates Number of Persons M anN eeks

Identification 1985 2 Preparation Appraiàal Oct.-Nov. 1985 2 Follow-up Supervision Aug.88 and M ay 1991 2 2

PCR July 1993 - Q Total 8 12

E. DISBURSEM ENTS

Estim ate at Appraisal Acmal

- Total disbursed UA 47.15 M UA 38.64 M - Am ount cancelled - Unused balance UA 8.51 M

F. CONTRACTOR

- Nam e Groupem ent COGEFAR CAM EROIJN-M ZEL FRERF-: - Responsibility W orks con% ctor - Date contract signed and additional clauses 1 and 2 01/09/88, 10/04/90 and 06/11/90 - Date contract com pleted 03 July 1991 - Effective contract duration 32 months (04/11/88-03/7/91) - Amount (in UA million) 41.26

G . CONSULTANT

N nme BCEOM CAM EROUN/LABOGENIE D ate coneact signed and additional clause 1 13/* /89 and 13/11/90 Contract duration 36 months (09/05/89-15/05/92) Amount (1 UA million) 2.32 (iv)

Other Bank Group-fmanced Proiects in the Sector

Loan Am ount (in UA million)

ADB ADF Aoproval Observations

Proiec?

- N ew Air Term inal 1, H and HI 4.76 1972 Com pleted

- Port of Douala Extension Project (1st and 2nd phases) 10.00 1976 Completed

- Study for -M anfé-a ok Road 0.95 1979 Completed

- Douala-Y>oundé Road (Linking South ot Douala) 10.00 1980 Com pleted

- Cons% ction of the New Douala Passenger Station 11.33 1982 Com pleted

- Realignm ent of the Douala-Yloundé Railway Eseka-M alollmé Section 22.80 - 1983 Com pleted

- Yaoundé-n ibi Road Study 1.78 1985 Consideration of a 1 l o c a t i o n underway

- M balmayo-Ebolowa Road 47. 15 - 1986 Completed

- Batoussam-Foumban Road 18.22 - 1989 Ongoing

- Ca eroon Road Progrnmm e 95.* 0.55 1991 Ongoing Total 222.36 INTRODUCTION

1.1 G eneral Context

1. 1.1 Cnmeroon is a coastal country of Central Africa. It covers an area of 475,442 k'mz. 11 population which is mostly rural (62.2%) is estimated at 12.42 million inhabitants. The average nnnual grow th rate is 3.2% with a labour force of about 65% and a density of 25.75 inhabitnnts to the square kilometre. The economy is based on agriculm ral sector activities wllich account for 24% of GDP formation and engage about 71% of the population.

1.1.2 During the flrst half of the 1980-1990 decade, Cameroon experienced a rem arkable economic growth of around 7% per armum , accompanied by an increased dem and for transport. During this period, the cotmtry M tiated with its own funds, a priority progrnm me centred on the improvement of the level of service of the priority trnnKport network. W ith the advent of the 1986 econom ic crisis, the country m rned to the internntional community to finance it,s developm ent progrnmm e focused on the road sub-sector, the rehabilitation and developm ent of the paved network. It is within this context that the improvement of the M balmayo-Ebolowa section into a paved road was subm itted to the Bnnk for finnncing.

1. 1.3 n e Bank's flrst operation in the eansport sector in Cam eroon was in 1972. To date, the Bnnk's overall commi% ent to the transport sector in Cameroon amounts to UA 222.36 m illion.

1.1.4 n e im provem ent of the M balmayo-Ebolowa road should provide service at the least transport cost to an agricultural and forestry region. The road is part of the trnns- African Mghway and provides an internntional 1* with Gabon and Equatorial Guinea. 1.1.5 n e project executing agency envisaged at appraisal was the Mirlistry of Equipment (Highways Directorate). The Hlghways Directorate discharged this duty up to M arch 1990, when this role was entrusted to ''Direction des Grands Travaux du Cnm erotm '' (DGTC), established in November 1988 and responsible in particular for the implementation of national inves% ent operations.

1.2 n e Transport Svstem

General Features

1.2.1 n e trnnqport system in Cameroon is chnracterized by the presence of a11 models of tnnqport, nnm ely, road, railway, m aritime, river and air transport. Road trnnsyort plays a predominnnt role in the domestic tansport of goods and passengers and in provlding accessibility to land-locked neighbouring countries like Chad and Central African Republic.

1.2.2 The presence of a1l modes of transport has always raised a coordinntion problem and m ost of the public entep rises operating in the sector need to be restructured in order to acllieve better fmancial pedbrmances, 'Fhe Trnnp ort Sector Progrnmme (TSP) (1994-1998) which the Government is preparing with the assistance of the W orld Bank, should m ake it possible to resolve these problem s. ., . .y 1

2 Roads

1.2.3 n e classified road network represents about 34,000 km of which only 3,468 km (10%) are paved. 'fhe level of network service is low, especially on enrth roads. Given that m obilizable resources on the domestic and external plane are lim lted, Govem m ent policy is to complete the inves% ent operations already committed (road progrnmme, loan B/CAM TRE/91/20 and to 1ay emphasis on the rehabilitation and maintennnce of a priority network identifièd within the context of the TSP.

1.2.4 The road sub-sector occupies an important place in national priorities ltnking into account its predominance in the trnnport system, about 95% of passenger traffic and about 75% of cargo traftk .

1.2.5 The classified road network com es under the M inistry of Public W orb (M INPW ). n rough the Highways Directorate, the M INPW designs, cons% ct.s and maintains the classified network. The adm inistration and m anagem ent of the unclassified network devolves on provincial and local authorities.

1.2.6 The road transport industry in Cam eroon is dom inated by the private sector. n e international road transport of goods and passengers on the one hand and intew rban trzmqport on the other, are exclusively in private hands. n ere is no rese ction to the itinerary or the type of goods transported. As regards the urban transport of passengerg, part of it is done by private people. It is only in D ouala and Yaotmdé that the State intervenes through the ''Société de Transport Urbain du Camerotm'' (SOTUC). d

1.2.7 The Transport tariff for goods is liberalized to allow carriers to % st cover the cost of services rendered. The transport tariff for passengers is also liberalized and flked in termK of distnnce and the state of roads except for urban tm np ort which is authorized by the State on a range basis. Access to the carrier eade is free.

1.2.8 n e vehicle fleet (with the exception of two wheelers) reached 129,800 irï 1988 compared with 91,000 in 1983, increasing at the average rate of 7.36% . In 1988, th: fleet was made up as fpllows: private vehicles: 72% ; light lorries: 10% ; buses: 4% ; lorries and other vehicles 14% . To the increase of the vehicle fleet corresponds an increase in road fuel consumption whose vollxmes increased from 397,517 m 3 to 515,559 m 3 or an average increase of 5.3% per nnnum over the snme period.

1.2.9 Traffic counts are made regularly by the Highways Directorate (Planning Division) on a11 the classified network (excluding m ral tracks) and sporadically on enrth roads. n ese count.s are done m anually and twice a year, and tllis made it possible to obtain large volumes of avemge daily and nnnual traffic. According to available data on the tarred road network, a daily average traffic (DAT) higher than 1,000 veMcles/day is recorded. Fmrth roads with good feam res record a DAT of 400 veh./d. on average. 3 n e Railwav

1.2.10 The country's railway network is m ade up of the Douala-Ngaoundéré line, 884 k'm long and the D ouala-Ngongsamba, 201 knz long. There are single-track lines with one m eee spacing.

1.2. 11 In 1983, the Bnnk participated in an infrastrucmre improvement progrnm me through the project for the realignment of the railway between Douala and Yaoundé. n e infrastructure and rolling stock are considered satisfactory; however, a few im provements envisaged in the 1992-1998 inves% ent progrnmme are still required on the rail, rolling stock and telecom munications.

1.2.12 Rail taffic experienced a decline between 1988 and 1992. Passenger and goods traffic decreased from 2.35 million passengers and 1.17 m illion tons in 1992 respectively. 'Ihis simation is due to the general economic crises and to the rail-road competition. n e operating of the railway network is entrusted to the ''Régie Nationale des CheminK de Fer du Cameroun' (REGIFERCAM). Faced with this difficult finnncial sinlntion, RIGIFERCAM put in place a finnncial recovery progrnm me and m easures aimed at ensuring the finnncial balance.

1.2. 13 There are 4 sea ports in Cameroon, nnm ely, one deep-water port in Douala and 3 secondary ports in , Tiko and Limbe. W ith 2,200 m of quays, the Douala port offers an annual capacity of 7 to 8 million tons. On the whole, itq installations are considered satisfactory.

1.2.14 n e Douala port has about 2,200 m of quays, 106 hectares of storage space and port equipment, notably a dredger to solve the problem of silt encountered by tllis port.

1.2.15 Overall, the Douala port offers a satisfactory quality of service and handles about 95% of external trade and transit activities. The rest of the traftk is shared nmong the secondyy ports of Kribi, Tiko and Limbe which handle timber, bnnnnns and rubber respectlvely. Traftk at the Douala port increased from 3,292 million tons in 1989 to 3,598 m illion tons in 1991 or an average nnnual increase of 4.5% . Of the secondary poM , only Kribi is of econom ic interest with an average traffic of 110,000 tons per year. As regards Tiko and Limbe ports, there is a decline in their activities due to very low taffic.

1.2.16 n e m nnngement of ports is entnlKted to Cameroon National Ports Authority (ONPC), a public induseial and commercial establishment under the M inistry of Public W orks. This Authority has an operating income that shows profit. Port dues are State- authorized.

1.2.17 'fhe State also pm icipates in long-distance tansport through Cameroon Shipping Lines (CAM SHIP), a semi-public company which handles about 40% of Maritime eaffk . ' ! 'q !

4 1.2.18 River trnnqport is also used on a m arginal way, on the River Benue, the principal watem ay offering navigation possibilities during periods of Mgh tides between in the north and River Niger. River traffic represented 7,866 tons in 1991.

Airpon

1.2.19 Cameroon has 3 internatiorml aip orts located at Douala, Yaoundé and Garoua able to rçceive heavy trnnKport aircrafts of the B 747 type. The airport system also includes six medium-sized airports able to receive the B 737 type m edillm-range aircraft, and some thl' rty s ma l l ai ipo rts .

1.2.20 On the whole, the level of service is satisfactory. However, it should be noted that rehabilitation works are required at Douala aiyort and that the new Yaoundé-Nsimalem airport is not fully supplied with water and electncity.

1.2.21 Several airlines use the airports: UTA , Sabena, Lufthansa, Nigeria Airways, A ir Afrique, Ee opia A irlines, Air Gabon and CAM M R, thè nationnl airline. n e latter, established in 1971, provides domestic as well as internntional flights. It cnrries an annual avemge of 550,4* qassengers and 10,000 tons of freight. CAMM R is experiencing a detk it finnncial sim atlon. n is simation is due to the operation of unprofitable domestic iights. It is also the result of intem odal competition especially on the high-traffic volum e corridors, such as between Douala and Yaoundé. To m eet this com petition, CAM M R should improve the quality of its services.

1.3 Transport Policv and Coordination

1.3.1 Confronted with the rApid growth in overall tlnqport dem and, the Governm ent hnq embarked, (during the five-yeg development plnnK) on the implementation of developmehy and rehabilktation projecis involving transport infras% cmres whose detkiencies impede the progress of other sectors. Transport policy is dom innted by the orgnnizmtion of dom estic trnnp ort favourable to a balance in settlement areas and the establishm ent of inter- regional trade. Emphasis is therefore laid on the improvement of the national road network, the boosting of the transport industry and the improvem ent of the conditions of to nKit goods O ough regional cooperation.

1.3.2 n e trnnqport system is directly managed by two ministries; i) the MINTP, responsible for designing the administration and management of the classified network; ii) the O NT responsible for applying ennKport regulations. Other m M stries intetvene indirectly in the sector, the M inistry of Plnnning which enmlres the coordination of al1 inves% ents in the sector and the M inistry bf Finance which deals with fmancing in the sector.

1.4 Bank Group O perafions in the Sed or

1.4.1 The transport sector is one of the priority sectors in which the Bnnk Group operates. n e latter, through the ADB and AD F, granted loans am ounting to UA 222.36 million for projec? in the transport sector directed more towards the road network. 5 1.4.2 n ese om rations aim at providing access especially to rural areas, so as to contdbute to the increase of production and the fostering of domestic and extenul trade. n e cons% ction of the proposed -Ebolowa road is part of these objectives. 1.5 Sources of Inform ation

Tltis project completion report (PCR) was written with information from 'the project appraisal report, the Bank's archives, meetings and discussiom held on the field with representatives of the govemment deparlmenl hwolved in the implementation of the project. M orm ation also cam e from correspondences and back-to-oftk e reports after field m issions and project implementationperformance evaluations. In addition, a project completion report prepared by DGTC, the executing agency, was used as a reference. Annex 1 gives the list of the major sources of information.

2. PROJECT IDENTN CATION. PREPARATION AND APPRM SAL

2.1 Identincation 2.1.1 The project was identified following a visit which a Cameroonian delegation made to the Bnnk in March 1985. n e delegation jresented to the Bank a road progrnmme prepared with W orld Bnnk assistnnce (.'61 road prolect'') for which BDEAC was approached to finnnce part of it.

2.1.2 In order to know m ore about the progmmm e, th. e Bnnk sent a m ission to the W orld Bxnk in W ashington in April 1985, the period envisaged for loan negotiations w ith this institution. n e inform ation obtained enabled the m ission to recomm end to the Bnnk to retain the M balmayo-Ebolowa road project (107 km). The oftkial request to flnnnce the project was received in the Bnnk in M ay 1985 and the project was included in the Bank's pimline of prpjec? for an amount of BUA 40 million. 2.2 Preparation and Appraisal

2.2.1 Project prepamtion was done at the Bnnk's Headquarters. n e Bank did not send out any project preparation mission. It was not deemed necessary to send a mission owàg to the quality of the previous operation m ade by the Borrower and the W orld Bnnk under the ':6t11 road project'' . Project appraisal took place in November 1985, on the basis of econom ic and engineering feasibility smdies, detailed prelim inary sm dies conducted by an engineering flrm on Government finnncing, and on the basis of preparation documents written by the W orld Bnnk.

2.2.2 n e appraisal m ission com prised one civil engineer and one trnnqport econornist and culminnted in an appraisal report giving pertinent information, in particular on project implementation monitoring. It should however be noted that the Cameroonian pm icipation in project fmapcing as envisaged at appraisal was very high (34.3%). Tllis pm icipation was maintained despite the fact thât duling loan negotiations the Cnmeroonian side requested that the Bank's participation be increased. 6 2.2.3 The Bank identified and appraised the project satisfactorily. 2.3 Tareet.s and Obiectives 2.3.1 Generally speaking, the project aims at providing the South Pmvince of Cameroon with a basic road infru tructure so as to promote the development of the various dconom ic sectors, pm icularly agriculture and foresr . 2.3.2 Specifically, the project will help the commllnity by: i) reducing the tmngport cost between Mbalmayo and Ebolowa through the decrease of vehicle operating cost; ii) strengthening regional integration O ough the im provement of the level of service on the road linking Cam eroon to Gabon and to Equatorial Guinea.

2.3.3 0n the whole, these objectives have been acMeved. We can say that the improvement of traffic conditions on the only road 1* between Ebolowa and Yaoundé the capital on one hand, and the Douala port on the other hand, has had a positive impact on the developm ent of the agricultural and forestry sectors.

2.3.4 The estim ated unit operating cost of vehicles on the M balmayo-Ebolowa road varies re/pectively for private vehicles and all others from 143.8 F/k= and 939.7 F/km in the simation without the project to 69.3 F/km and 467.6 F/k'm in the simation with the project, or a reduction of about 50% . This simation shows that domestic and internntional trade is cnrried out under the best econom ic conditions.

2.4 Ilroiect llescription The project had two components:

improvement of the national highway no.2 between M balmayo and Ebolowa, over a distance of 101 km , involving the cons% ction of a tarred road 7 m wide with a platform of 11 m and a design speed of 100 km /hr; the cons% ction of a lorries-weighing station;

ii) woru supervision and inspection.

3. PR OJECT O LEG NTATION Ae COST

3.1 Effectivenu s and Take-off

3.1. 1 The conditions for loan effectiveness required the Govemment to: i) give a written unde> king to include in its Rnnual budget its pm icipation in the finnncing of tlle project; ii) give a written unde> king to fmd additional sources of finance in the event of project cost overrnn; and iii) give a written undertnking not to utilize the proceeds of the loan for the paym ent of various 'nxes and duties on goods and services required for the implementation of the project. 7 3.1.2 n ese comm i% ent.s were made and the loan becnme effective in September 1988. W orks effectively took off in November 1988 whereas the estim ated tmke-off date was October 1986. n is delay does not seem to be related to the late effectiveness of the loan, it is m ainly due to the causes explained under paragraph 3.3 below.

3.2 Proied M odifk ations 3.2.1 The changes and modifications made in the design and flnancing of the project are presented below :

i) The road alignment was to cross M engong village (PK 70). At the time of implem entation, the works owner decided to circum vent the village so as to avoid expropriations inside the village as well as the disorders that works could have caused in the water distribution network which had just been put in place. ii) The bottom of the road was envisaged in ballast materials 0/31.5 of 15 cm thicu ess and in lathyritic materials of 20 cm thickness for the sectio> PK 0 to PK 62 and PK 62 to PK 101 respectively. n e bottom layer in ballast materials was finally replaced with lathyritic materials. In the jeotechnical study, it was considered that there was not enough lathyrltic materials. Despite the considerable distnnce of transporting laterite, this solution was m ore econom ical than the one initially envisaged.

iii) n e bridge over the SO'0 which has a span of 100 m was extended by 20 m so as to avoid the implementation of a complicated and onerous technical solution at the level of the bottom of the abu% ent located on the Ebolowa side (slantwise). iv) Four other concrete bridges of 20 m span have been replaced with blast-pipes of 3.60 m diameter taking into account the flows. n e construction of the bridges would have required the extension of the piers, tnking into consideration the thickness of the sand m et.

v) n e flxed % cks-weighing station envisaged at the M balmayo exit was not done. It was replaced with road count m aterials and mobile vehicle-weighing smtions. This option seems m ore appropriate tnking into account the flexible use of the vehicle-weighing stations. A lthough these equipment have effectively been bought, they were unfo= nately not yet installed by the time the project completion preparatory m ission was leaving, i.e. m ore th= 2 years after their procurement. vi) n e Government has decided to provide a travel bridge, not envisaged in the contact, to the workshop shed built at Ebolowa. 8 vii) As part of the agro-pastoral show activitiçs envisaged in Ebolowa, access roads have been developed at the site i.e. 19.70 km of double- layer paved roads and 2.6 km of earth roads representing a carriageway of 7 m wide. A heliport has been cons% cted with a landing area of 2,700 m7.

viii) It was envisaged that a bituminous concrete layer would be realized nine (9) months after putting a double layer on the carriageway and a triple layer on the shoulders. Finnlly, a triple layer was put on the carriageway and a double layer on the shoulders.

ix) In Febnmry 1990, the Bank accepted to raise its participation in the finnncing of works to 86% of the am ount net of taxes and expropriations. It had moreover accepted in 1988 to pre-finance the Government share which was com mitted to regulalize the situation once the 86% ceiling had been reached. At the completion of works, the simation was not regularized and the Bnnk flnally flnnnced 90% of the contract. ln addition, the Bnnk accepted to finance CFAF 69,386,435 or 27% of the contact am ount net of tlxes with the Civil Engineee g M boratory (CEQ , representing the unpaid balance by the Govem m ent. The corresponding disbursem ent has not yet been m ade owing to the suspension of disbursem ents on account of arrears.

3.2.2 Only the chnnges under paragraphs vii) to ix) above have been submitted to the approval of the Bank which approved them subject to the regulariz>tion of the Bank's pre-finnncing referred to under paragraph ix). M odifications in the technical designs of the project are due to the wenkness of the smdies conducted by AR AL HANDASAH consulting flrm on Governm ent flnnncing.

3.3 H plem entation Schedule

3.3.1 'I'he table below shows the estimated and actual schedule for the major stages of the project.

Table 3. 1 lm nlementation Schedule svorks Date Delav Schedule Acm al in m onths

Nego4iatiom M arch 1986 September 1986 6 Preselection January-April 1986 Sept.86-sept. 1987 17 Bids M ay-luly 1986 Sept.r -Nov. 1987 16 Award Aug.-sept. 1986 April 1988 19 W orks take-off October 1986 Novem ber 1988 25 End of works December 1989 July 1991 19 9 Date Delay Schedule Actual in months

Suoervision and Inspection

Short-listing M arch-M ay 1986 September 1987 16 Bidding June-luly 1986 Jan.-M arch 1988 20 Appoin% ent of consultant Aug.-sept. 1986 February 1989 29 Signature of contract September 1986 April 1989 31 W orks H pection Oct. 86-Dec. 1986 M ay 89-Ju1y 1991 19

3.3.2 n e Governm ent was hwited to negotiate the loan in M arch 1986. Negotiations were only held after six m onths. Government hesitations were said to be due to the fact thnt it wanted to negotiate an overall road progrnmme (6th road project). Yet the request for financing was clear on the project proposed for the Bank's flnnncing (M balmayo- Ebolowa road).

3.3.3 It took a long time for the Bank to approve the coneactors pre-selected, the consulting flrms short-listed and the results of bids due to the diftkulties encountered by the Government to follow procedures for the procurement of goods and services and the stipulatiom for bidding and shopping.

3.3.4 n e delay resulted in burdening the country's debt service O ough the paym ent of a considerable comm itment charge.

3.4 Reportinz

3.4.1 M onthly and qum erly reports were sent regularly to the Bnnk. n ese repon contain relevant information on project implementation. However, it should be noted that the Government did not seek the Bsnk's approval on m ost of the m oditk ations m entioned under paragraph 3.3 above. n e Government also produced the flnnl report used in prepnring the present report.

3.4.2 n e Bnnk carried out two (2) supervision missions after which repoM were written.

3.5 Procurem ent of Goods and Service.s

3.5.1 Following the pre-selection of contractors for the works launched in September 1987, tlu' rty-seven (37) candidatures from 11 member countries of the Bank were registered, twenty-one contactors were fmally retained.

3.5.2 The pre-selection of contractors for the works raised two types of problem s, nnmely, cdmpliance with the Bank's rules of procedure and the stipulations in the pre- selection file. Indeed, the pre-selection notice was not sent for the Bank's approval and its dissemination was lim ited to embassies of countries represented locally. Given the considerable number of coneactors which replied, the Bank accepted to go ahead with the 10 exnm inntion of the pre-selection resull. Strict com pliance with the provisions of tke pre- selection file 1ed to the selection of 20 contractors instead of 21, but owing to Governm ent insistence, the contractor that did not score the m inimllm mark required was fm >lly retnined. These diflkulties explain the long delay (12 months) that it took to dmw up the list of contactors pre-selected.

3.5.3 Invitations to bid were sent to the contractors retained in September 1987. Nine contractors replied and the contact was awarded to COGEFAW RAZEL consortillm in April 1988 for an am ount of CFAF 14,847,372,340 net of taxes and expropriations. n e provision made in the appraisal report for works was CFAF 19,890,000,000 mase cost); the cost of expropriations was CFAF 750,000,000.

3.5.4 After exam ining the report on proposals, the Bank considered that two bidders had made equivalent proposzs and that they should be separated. After exchnnging several correspondences on this m atter, the Bnnk finally approved the Govem ment's choice to award the contact of works to CEGEFAW RAZEL Consortium .

3.5.5 For the supervision and inspection of works, the evaluation of the 7 com ulting flrms shortlisted was done in January 1988. n e contract was awarded to BCEOM - CAVEROUN in Febmary 1989 for an amount of CFAF 611,680,870 net of taxes. Tlw provision made at appraisal for tllis component was CFAF 1,010,000,000 (base cost). 3.5.6 Govem ment's proposal to award the contract for the inspection and supervision of works to M essrs. DAR AL H ANDASAH flrm was not approved by the Bnnk. This flrm complèted its teclm ical proposal after the deadline for subm itting bids and its technicél note had to be reviewed downward tnking this element into consiieration. n e firm moreover presented the references of the firm that conducted the smdy and which was not eligible for ADB flnnncing IDAR AL HANDASAH of lzbanese nationality). 'I'he Government fmally accepted the Bnnk's recom mendations to award the contact to BCEOM -CAM EROUN, the lbwers bidder.

3.5.7 n e delay in awarding the contract for inspection 1ed to delay in setting up the Inspection Unit. During the period when the Inspection Unit was not on the site, the Government did what it cogld to ensure works insm ction and supervision.

3.5.8 Despite the considerable delay recorded during loan negotiations and coneact approval, the procurem ent procedure for goods and services was complied with in respect of the two components.

3.6 Proiec't Cos't 3.6.1 The estimated cost of tlze jroject at appraisal in November 1985 was BUA 71.77 million including 47.15 million m foreign exchange (66%) and 24.62 million in local currency (34%). The project cost at appraisal and the actual cost are shown in the table G low: 11 Table 3.2 Proiect Cost (in UA millions)

At Appraisal Acmal .. .-. ..- .. -. .. . CUWCLCY------.. .. - - . - CUWCZCX ---- Comx nent F.E. L.C. Tot< F.E. L.C. Tot:

A. W orks 31.14 16.76 47.30 28.88 12.38 412: B. Inspection and Supervision 1.94 0.49 2.43 0.42 1.90 B%e Cost 33.08 17.25 50.33 29.30 14.28 43.% Physical Contingencies 4.01 2. 12 6.13 Price Escalation 10.06 5.25 15.31 Total Cost 47.15 24.62 71.77 29.30 14.28 43.% ======

3.6.2 The actual cost shown above comprises:

i) for works: works related to the Ebolowa agro-pastoral show (about 10%); ii) for inspection: an amount of FUA 0.04 million by BCEOM and another of UA 0. 17 million still undisbursed in respect of the contract with LAROGENIE.

3.6.3 n e above table shows th'at despite the moditkations, the project appraisal overestl. mated the project cost. 'I'his sitllntion is explained by tlle lack of reliable data on the unit price of road works in Cameroon. To circnmvent this diftkulty, it was envisaged at the time to invite tenders before the presentation of the project to the Board so as to have a reliable cost estimate of the project but this procedure was not adopted. It should be m oreover be stessed tlmt this sim ation can also be explained by the keen com petition in the implementation of works given the nllmber of contractors (candidates) (37), pre-selected (21) and (9) submitted bids. 3.7 Disbursem ent and Sourcu of Financing 3.7.1 n e project was to be flnnnced jointly by the Bank and the Government at the ratç of 65.7% and 34.3% , respectively. In view of the fmancial diftk ulties that Cameroon experienced, the IBRD participated in the fmancing of the project by tnking up UA 4.19 m illion from the share of the Government. n e table below shows the provisional and acm al finnncing plan. 12 Table 3.3 Financin, Plan (in UA million)

At Appraisal Acmal

Sources F.E. L.C. Total (%) F.E. L.C. Total ( % ) ADB 47.15 - 47.15 (65.70) 29.30 9.34 38.64 (88.66) GOVERNM ENT - 24.62 24.62 (34.30) - 0.75 0.75 ( 1.72) GOVT (IBRD) - 14.28 4.19 ( 9.62) TOTAL 47.15 24.62 71.77 (100.00) 29.30 14.28 43.58 (100.00)

3.7.2 The Acm al finnncing plan by source and by component is shown below:

Table -3-.4- Acmal Firmncinc Plan bv Soume and bv Contract (1 UA million) Contract TOTAL Government Govy. (IBRD) ADB F.E. L.C. Total F.E. L.-C. ToGl F.E. L.C. Total F.E. L.C. F.E. (%) Works 28.88 12.3* 41.26 0.28 0.2: 3.72 3.72 28.88 8.38 37.26 (K.3l) H pecdon and Supervision 0.42 1.26 1.68 - - 0.47 0.47 0.42 0.79 1-21 (72.02) Im% ratory Texts - 0.64 0.64 0.47 0.47 z. - 0.17 0.17 (26.56) TOTAL 29.30 14.28 43.5 8 0 .47 0.47 759 :. .19 29.30 9.34 38.* (88.*)

3.7.3 At the Government's request, tlle Bnnk in January 1990, raised it.s pm icipation in the finnncing of the work.s contract from 63.4% to 86% and accepted to pre-flnnnce the Govem ment's share. 3.7.4 n e Blnk would bave stopped disburserents on Ge works conœact at tlle time the cumulative disbursements reached UA 35.48 mzllion, or 86% . The Bank continued to pre- finnnce the Government's share up tb the end of works reaching 90.31% .

3.7.5 The forecast and acm al sim ation of disbursem en? by source of fmancing on the basis of the Bnnk's disbursement status is as follows: 13 Table 3.5 Disbursements by Source of Financing

At Appraisal Acmal GOVT ADB 5.y.1 Total & AII JBRD) GOVT TOTAL 1989 4.16 2.15 6.31 (9.00) ( 0.00) 1987 8.72 4.52 13..24 (18.50) - ( 0.00) 1988 14.85 7.79 22.64 (31.50) 11.30 0.74 0.14 12.28 (28.00) 1989 15.40 8.13 23.53 (33.00) 9.24 - 0.10 9.24 (21.00) 1990 4.02 2.03 6.05 ( 8.00) 11.94 3.10 0.46 16.67 (38.00) 1991 5.06 - 0.04 3.93 ( 9.00) 1992 0.93 0.35 0.01 1.29 ( 3.00) 1994 0.17 - 0. 17 ( 1.00) TOTAL 47. 15 24.62 71.77 (100.00) 38.* 4.19 0.75 43.58 (1œ .00)

3.7.6 ADB should pay the last disbursement of UA 0.17 million in 1994 subject to the lifting of sanctions imposed on Cam eroon because of arrears. n e unexpended balance on the ADB loan nmounts to UA 8.510 m illion.

3.8 Perform ances of the Consultant. the Contractor. the Executine Agenvv and the Borrower

Consultant

3.8.1 At the beginning, the Consultant experienced a hard time in regard of services. The services of the consultant only com menced in 1989 whereas works started in 1988. The performance of the consultant has been regarded on average as satisfactory. However, it should be noted that following the laying of the yipes envisaged under the project, swamps developed upstream . n e Consultant, during prolect im plementation, did not go deeply into the impact of the pipe-laying method adopted in the environment. Questioned by the Bank, the Consultant m ade a technical report on the m atter. 'l'he stagnation of water is due to the technique adopted for the laying of pipes. Indeed, tnking into account the topography of the land (a swampy area with vlrtually no slope), it was decided that the upstream head of the pipes should be raised in termq of the current in order to create a slope and avoid silting, as this creates a sm all reservoir. Experience on other work sites in Cameroon shows that nature in the end adapts itself by regenerating an appropriate vegetation. The solution which would consist in brenking the road where the pipes are laid (about thirtyl to 1ay them horizontally is not recomm ended in this case given the M gh cost of the operation, and the resultant m aintennnce obligations entailed. 14 'I'he Contractor

3.8.2 The Contractor engaged in the construction works of this road has on the whole perform ed satisfactorily. lt Fas able to use the advice of the Governm ent and the Consultant. W orks were not delayed and the quality of fm ished works was considered good both by the Govem m ent and by the Bnnk. Dep ite the various m odification m ade, the contractor was able to do the work within the time-lim it while rem aining within the fmancial contact package.

Executinz Azencv

3.8.3 During project implementation, the Executing Agency changed. The rble of Executing Agency which was assllm ed by the Highways M aintenance Directorate in the M inije of Public W orks at take-off, was later en% sted to the ''Direction Géhérale des Grands Tràvaux du Cambroun'' (DGTC) esub, lished in 1988 under the authority of the Prime M inister's 00 ce. n e project mnnnger was also changed during project implementation. n is state of affairs 1ed to a few dismrbances in project implementation monitoring. n e administrative and fmancial mnnngement of the project was in pm icular very unqatisfactory. 3.8.4 The Executing Agency had a 1ot of problem s in complying with the Bnnk's rules of procedure on the procurem ent of goods and services. These problem s led to considerable delay in project implementation and a greater indebtedness for the country (commlJ% ent charge) . The borrower was unable to mobilize al1 the required resources. Theoretlcally, therefore, the State fulfilled a1l the conditions precedent to first disbursement, but in practice, for the condition relating to the inclusion in the budget of the Govem m ent's share, the borrower Fas unable to effectively m obilize its counterpart funds.

4. M AN ENANCE STRUCTURE

4. 1 The M INPW was reorgnnized by decree N O 93/137 of 19 M ay 1993. It co>prises at the central level, a Highways Directorate W D) which maintains. the classifiel road network (paved and enrth roads). This Directorate is responsible for prepnring and uppating the nnnual m aintennnce plan, monitoling the im plem entation of contracts relating to the m aintennnce of roads and bridges. n e HD has a sub-directol'ate for road m aintennnce.

4.2 The sub-directorate for road maintennnce is organized into 3 sections as follows:

i) n rth roads maintenance section: its responsibility is to draw up the yearly maintennnce progrnmme, conduct engineering smdies for the implemeniation of earth road maintenance works on force account. It supervises the m aintennnce programmes implementation and m onitors the maintennnce of bridges, drainage and signalling;

ii) Paved roads maintenance section: it is responsible inter alia for d, rawing pp the yearly progrnm mes for paved p ads m aintenance, conducting engineering smdies or engineèring worl of paved roads on force account. It ik also responsible for the building and maintenxnce of m obile-weigbing statiol on paved roads network; and

.' ;-: . . 15 iii) Feeder road maintenance section: it is responsible for the maintenance and mnnngem ent of the relevant m aterials and equipm ent, for the progrnm ming of operations leading to the creation, development and m aintenance of fnrm roads, conducting engineering studies and engineering designs for the cons% ction and m aintenance work-s of feeder roads. 4.3 In regions, road maintenance is done at the level of the yrovincial delegation of public woru by the provincial service for enrth roads and by the provmcial service for paved roads.

4.4 For maintenance work by force account, the HD relies on the Civil Engineeling Equipment Dept. (CEED), for the hiring of equipment, on the basis of a hiring contract. 4.5 Road maintennnce equipment and training needs have been identified and finnnced under the road progrnmme being launched.

Financinc of Road lnvestments

4.6 Up till 1981, the annual flnxncial resources devoted to road inves% ents were around CFAF 14 billion and remained modest. Between 1981 and 1986, the trend was reversed O ough the rapid increase of the Govem ment's own credit standing capacity and road inves% ents reached CFAF 65 billion in 1986 witll its own flnnncing representing 67.44% in 1981-82 and 69.17% in 1985-86 of total expindimre in the sub-sector.

4.7 As from 1985-86, following budgetary constaints, a slowdown in road investments was observed. Inves% ents only represented 12 billion CFAF in 1987-88. The volume of road invesc ents envisaged from 1989-90 under the priority PiP covering the period 1989- 93, stood at 60 billion CFAF per year. The share of finandng expected from abroad should be m ore than 80% of this amount which will mainly be allocated to roads with heavy traftk . It should be noted that since the 1988-89 fm ancial year the W orld Bnnk pm icipates in the finnncing of road m aintennnce operations under the 61 road progm mme.

5. ECONOM IC RE-APPRAISAL

5.1 G eneralities and M ethodoloa

5. 1.1 The project was appraised in 1985 when the country enjoyed a favoumble economic climate (favoumble balance of tade, economic growth rate around 7%). n e econonzic justitkation of the project at the time of appraisal was especially based on the following factors: i) development of agriculmral and forestry production in the project area, certain indicàtors on the road ennqport sector such as increase in the vehicle fleet, fuel colw lmption, traftk on the national road network; ii) the road was of paramount imporonce in providing access to the region and a better link with Gabon and Equatorial Guinea. n ese assllmptions were also nnnlyzed during the preparation of the PCR. 16 5.1.2 n e method used to re-value the economic interest of the project is' similar to thàt of the economic appraisal and is based on the cost-bepefit criterion. By comparing tke two simations ''without'' and ''with' the project, it sets forth an economic performance which makes it possible to calculate the economic rate of return. The econolnic appraisal txkes into account the quantifiable costs and benefit.s resulting from the two simations mentioned above. Costs are those involved in the cons% ction of the road. n e estim ated quantifiable benefits are relatihg to the reduction of veM cle opemting costs and maintenance costq obtained O ough the improvem ent of the road. n ese benefits are related to the traffic thnt the road should bear during its entire life span.

5, 1.3 n e project Fas completed in July 1991. n e reference year chosen for the yeassessment of the benefits and economic cost of the project is 1992 which was the 1st year after project implementation when the road was fully operational. 5.2 The Trafnc

5.2.1 Traffic coun? on the road network go back to 1978, but were done on the basis of an unsatisfactory orgaO ation (detkiency in the control system, disorderly changing of cotmting posts from one year to another, etc). Commencing from 1983, after the implem entation of a new nom enclamre on the one hand and the putting in place of a planning unit within the Highways D irectorate on the other hand, a considerable improvem ent was m ade in the m nnngem ent system of the road network. n e improved system of taffic count after project appraisal made it possible to have a series of data representative of the change in the tim e of road M nKport dem and. Other statistical data relating to the increase in the vehicle fleet and fuel consllmption complement the counting results and assist in their processing.

5.2.2 Specitk coun? on the proposed road gave the following results on the volum e of taffic

Total traffic (vehicles/d) 185 210 313 366

5.2.3 n e analysis of resul? between 1983 and 1992 shows a daily average nnnual eaffic growth (DAT) of 7.8% increasing from 185 veMcles/day in 1983 to 366 vehicles/day in 1992, the flrst full year of the road's operation. n e 1992 DAT has been nken as a base for the project economlc reappraisal. n e distribution of this traffic by categories of vehicles on the road was shown in 1992 as follows:

Private M edium-size Heavv Vehicles Pick-up % Lorries Lorries Trailers 116 69 119 47 3 12 366

This distibution is taken into account in traftk projections for the economic r:appraisal. 17 5.2.4 The M balm ayo-Ebolowa road crosses an importlnt agriculm l'al and fores> area whose yield on average represents 34% of the country's production. W ith an average Annual population grow th of 3% , this area benefitas from tlle support of donors for socio-econom ic development projects. The nnnual growth rate of vehicles was 7.3% between 1983 and 1988 and fuel conmlm ption was 5.3% over the sam e period. Besides, from the sm dy on the classes of traftk updated in 1989 (cf. ''transport strategy in Cameroun'') and covering a11 categories of roads, it em erges that the following traffic growth rates are recorded, 7% on paved roads, 6% on earth roads with heavy traftk and 4% on earth roads with average traftk . On the basis of these data and indicators on the road ennvport sub-sector and the assumption of econom ic recovery, a modest nnnual growth rate of 4% was adopted for traffic projections. 5.2.5 Annex 2 shows the sum mary of the two series of traffic ex-ante and ex-post projections by year and by category of veMcles. n e disparities observed come from the non-realization of economic growth assllmptions at the time of appraisal (nearly 7 % per nnnllm). Yet, since 1989, the Cameroonian economy declined and the trend changed. 'fhe normal taffic projections at appraisal were calculated on the basis of an nnnual growth rate of 8% between 1984 and 1989 and an nnnual growth rate varying over the period 1989-1998 by cétegory of vellicles from 8 to 15% and from 5 to 10% between 1998 to 2008. n ese projections are also made tmking into account a project take-off in 1986. The take-off only took place in 1988.

5.3 Vehicles O oeratine Cost,s (VOC)

5.3.1 W ithin the context of the economic smdies of road projeçts, the Highways Directorate @ID) of the M inistry of Public W orks periodically draws up tlle unit operating costs of veMcles (VOC). n e first national costs of VOC were calculated manually in 1983 and revised in 1986. After project appraisal, the system of calculating VOC improved with the use of the HDM . Following this HDM m odel, which makes it possible to increase the margin of precision, these unit costs (111 CFAF/G ) were recalculated in 1989 on the national plane, and improved in December 1992 by the HD in term s of the level of the cm iageway and geometric characteristics.

5.3.2 n e December 1992 national values of the unit VOC which emerge from the HDM model, were retnined and used as a basis for estimnting the nnnual benefits of the project. n e reference simation of the project is that of an earth road in poor state with diftkult cbnracteristics (cf. appraisal reyort). n e VOC and maintennnce costs in the situation without the project reached a hlgh level due to the deteriorating state of the road. n e project implementation made it possible to have a good paved road tlms reducing considerably the VOC and m aintenance costs and improving the average speed. Under these conditions, the unit values used in calculating the nnnual benefits are as follows:

Private M edium-size Heavy Vehicles Pick-tp Lorries Lorries Trailers

W ithout Pr. 143.80 201.30 544.40 374.30 734.00 939.70 With Proj. 69.30 80.90 313.60 167.80 348.20 . 467.60 18 5.3.3 It is not possible to compare these values (ex-post) to those of the appraisal (ex-ante) because the meihod used in 1985 for the ex-ante appraisal was différent, it was manual and unrrliable. n e HDM m ethod was not applied at that time.

5.4 M aintenance Cost

5.4.1 M aintennnce costs are based on the data and technical inform ation on the consistence pf Gàihlenance tasks obuined from the Highways Department (HD' ). Unit cosB were determ ined from seategies adopted by the HD and by tnking into account the state of the cnrriageway. n ese maintenance unit costs estimnted at the revaluation of the project are as follows:

Current m aintenance on earth road with difficult feamres (every year) CFAF 1,000,000/e Periodic maintennnce (every 5 years) on enrth road CFAF 2,+ 6,* 0/%

Current m aintennnce où paved road CFAF 641,0* /%

Periodic maintenance (replacement of worn-out layer) every 8 years CFAF 10,000,X 0/hn

5.4.2 n e ex-ante estimate had retained in the situation Fithout project, current and periodicAl mpintennnce unit costs of CFAF 450,000/% and 950,000 respectively (i.e. an overall màintenance cost PFAF 1,4œ ,0œ/e taken into account yearly over the entite life s/àn of the roAd) representing about half of those of the ex-post. n e assxlmptions, Whose m aintenlnce psks defm ed in nnnex alld taken into considèration in the calculation and updatihg of costs are certainly at the base of the disparities observed. On the other hand, in the simation with project, the ex-ante costs retained for the current and periodical maintem nce (respectively CFAF 600,000/km/year and CFAF 10,000,000/% are comparable to tllose of the ex-post. The quantified economic benefits resulting from the use of the paved road are summ nrized in Annex 3.

5.5 Econom ic Rate of Return

5.5.1 n e life span of the binlm enized road is deem ed equal to 20 years as in the ex-ante evaluation. The residual value of the road (after the seengthening works envisaged during the 15th year) is estimated at 60% of the base cost for the carriageway and 33% of the one relating to the structures. It mostly covers the earthworks and the structures and r4lated works. The acmal economic cost of the project is spread over the period 1988 to 1992 tnking into account works effectively done and am ounts to CFAF 16,816,770, ioe. a saving of 25% compared to the ex-ante evaluation (CFAF 22.332 billion). 19 5.5.2 On the basis of the above considerations and by compnring costs and economic benefil, an economic rate of return (ERR) of 13.43% emerges and this is close to the one obtained at the ex-ante evaluation. The sim ation envisaged at the ex-ante evaluation for traffic has somehow been dismrbed by the delay in project tnke-off. 'I'he economic benefits envisaged should have been derived from project implementation as early as 1989. The ERR obtained is slightly Mgher than the one anticipated at project appraisal (12.5%). n is is explained by the fact that the actual cost of the project was lower. The unit V0Cs calculated on the basis of the HDM m odel have m ade it possible to better coneol the pattern level of the carriageway al1 along its utilization and are more improved compared to those of the appraisal. The benefitq on the VOCs have therefore been greater.

5.6 Socio-Econom kc--lm pact of the Road

5.6.1 n e M balm ayo-Ebolowa road, which is a section of the Inter-state Yaoundé-Gabon frontier, serves the South and Centre provinces (whose population represents about 20% of the total population of Cameroon). It linkq these provinces to Yaoundé the capital through a paved road Yaotm dé-M bnlmayo-Ebolowa, and this promotes the supply of m anufactured products and thé factors of production passing O ough an important agriculm ral and forestry region. n e following divisions: Ntem, Dja-et-c bo and Océan in the South Province, M éfou, Nyong-et-soo in the Centre Province are affected by the project. n e road has also contributed to a better movement of goods and persons with a view to increasing production and improving living conditions.

5.6.2 lt was an enrth road initially with diftk ult feamres. 11 cons% ction has an impact on the developm ent of the region it crosses. It has facilitated the sociz and adm inistrative integration of the population and has improved their living cpnditions. According to the results of the last census conducted in 1987 and the population growth rate recorded in the different adm inistrative units, the population of the above-m entioned divisions increased from 612,589 inhnbitnnts in 1987 to 656,751 inhnbitants in 1992. As regards the South and Centre provinces directly linked by this road, the population increased at an nnnual rate of 3% (2,329,+ 3 inhnbitnnts in 1992 compared to 2,025,398 inhabitnnts in 1987). 5.6.3 The two provinces are part of the signitkant forest regiorks of the country and have an average yield of 34% of the counA 's total production in 1990/91. According to available statistics in the Forest Directorate, timber production in these provinces increased from 722,108 m 3 in 1987 to 787,510 m3 in 1990/91 or an nnnual growth rate of 3% .

5.6.4 n e two provinces served by the road also produce cash crops (cocoa, coffee, pnlm oil) whose production in 1990/91 accounted respectively for 54%, 7% and 34% of the country's total production) and food crops (especially cassava whose production in 1990/91 accounte.d for 44% of the country's production, bnnnnns: 25% , sugar cane: 45% and cocoynm s: 23% . As regards the country, these products wim essed flucmations related to the economic crisis in the country. Cocoa production in tllis region experienced an annual slowdown of 3% (53,737 tons in 1990/91 compared to 63,219 tons in 1985/86). 0n the other hand, coffee and palm oi1 productions experienced a respective nnnual increase of 8% and 5% (5,319 tons and 12,499 tons in 1990/91 compared to 3,570 tons and 9,900 tons in 1985/86). Cassava and sugar cane production increased nnnually by 4.5% and 6.7% (692,198 tons and 43,794 tons in 1990/91 compared to 556,209 tons and 31,616 tons in 1985/86). Cocoynm production increased by 12% per ammm between 1985/86 and 1990/91. Bnnnnn production increased from 133,494 tons in 1985/86 to 146,978 tons in 1990/91. 20 5.6.5 Food-crop production provides the population with its requirem ents in food and income. The cons% ction of the road provided eésy access to activity centres and facilitated the tnnKportation of these products to markee. lt provides easy access to the new border m arket at Amban. In addition, the activities of agricultul'al extension and the on-going development projects (cocoa development project, the project for the diversitkation of agriculmral crops in the South and Cente pro#inces, forest research development project) are fostered by the construction of this road.

6. BAN K'S PERFORM ANCE

' 6.1 'I'he Governm ent requested the Bnnk for r> ncial support to cons% ct the M bnlm ayo-

Ebolowa road. n ere were several sm dies on this road, the m ost recent bein'g in 1984 and was flnnnced by Cameroon. The smdies concem ed are technlpco-econom ic feasibility sm dies and detailed engineeling designs.

6.2 'l'he Bank appraised the project on the basis of smdy and information documents provided by the Clmeroonian authorities and on the basis of docllments prepared by the W orld bnnk within the purview of the ''6t.11 road project'' . n e availability of these docllmen? made it possible to go directly to the project appraisal without identitkation. 6.3 As regards implemenution, supervision m issions were not suftk ient. Supervision missions dun'ng project implementation could have enabled tlle Bnnk to take active yart in the me ifiçations of thé project. However, YARO and Headquarters very much pm iclpated in su#vsion in the oflke. A lot of correppndences were exchanged with the project e:ecuting >grncy in particular to resolve problems raised by the procurement of goe s and services. lt should however be noted that an in-depth study of progriss reports would have made it possible to reveal and discuss the different modifications of the project. n e constaints of technical staff both at YARO and at H eadqum ers seem to be at the root of this shortcom ing.

6.4 The Bnnk accepted to pre-fmance the Government's shxre in the works conîact. n e Bnnk did not, as agreed, stop disbursements on this contratt at the thhe its shnre was completed to enable the Governm ent to take over. Generally spenking, the Bank's m rform ance was average.

CONCLUSIONS

7.1 Conclusions

7.1.1 The economic rate of return (ERR) obtained at (ex-post) evaluation of the project was close to the ex-ante evaluation one. TM s rate was favoured by the acmal inves% ent cost wMch was reduced by 25% compared to appm isal and the benefits derived from considerable gains op vehide operatiné and roéd maintennnce costs. This rate is based on cgreful projections. n e economic viability of the project will be seenéthened by its contribution totlle socio-:conomic development of the country and the road is an importxnt support to the on-going agriculmral and fores> development projects in the project area. n e ERR is around 13.43% at the ex-post evaluation and at 12.50% at ex-ante evaluation. n is r'ate is still econom ically acceptable. 21 7.1.2 n e road has been opened to traftk at the overall satisfaction of a11 the pm ies involved in its construction. The works which have been completed without delay are of good quality. The road is in a good conservation state. n e extension of the M balmayo- Ebolowa axis progrnmmed subsequently will provide Cam eroon with an entirely paved opening up road which will increase the usefulness, the influence and econom ic interest of the project. 7.1.3 Project implementation made substantial savings amounting to UA 8.51 million from the loan the Bank granted to the Borrower. n e latter has requested to use tllis bala ce to extend the road towards the border with Gabon. However, since the devaluation of the CFA Franc in January 1994, this balance could be re-allocated to another operation. n e balance takes into account the amount of the last balance of the CEL ''u bogènie'' (for the geotechnical tests) which the Bnnk accepted to flnnnce in place of the Cameroon Govemment. This balance represents UA 0. 17 million.

7. 1.4 n e construction of the road contributes to the acMevement of the objectives of opening up the agriculmral and forestry regions pursued by the Govem ment in the tralisport sector and the road sub-sector.

7.2 Lessons

7.2.1 n e Bank pre-fmanced the Government's share up to the end of works. It is true that, tnking into account the budgetary problem s that the country is facing, the latter would not have been able to take over the paym ent of its shnre up to the com pletion of works. In future, the Bnnk should avoid any pre-finnncing of the share of a co-finnncier without putting in place a reliable system of regulnrizmtitm. Indeed, pre-fmancing can lead either to flnancing a m ore subsA tial slmre tha11 envisaged, or to the depletion of resources before the end of the project. n e wisest solution is to ensure that the flnnncing plan is closed as soon as the project takes off . 7.2.2 The finnncing plan of the project reserved a very stgnitkant share to Cameroon (34.30%) and tltis explains at least in part, the problems that the country encountered in meeting its commi% ents. In fumre, it would be better for the counr to take a slure that is compatible w ith its mobilizable resources.

7.2.3 n e substantial bglance on the loan is due to an overestim ation of costs at appraisal. In the absence of reliable data on costs, the Bnnk could have considered the possibility of inviting tenders before presenting the project to the Board. 7.2.4 As regards project mnnngement, the assistance which the Bnnk gave to the project executing agency was weak, given especially the detk iency of the monitoring and supervision missions. n e Bank should have adequate m eans to apply the guidelines on supervision.

7.2.5 'fhe term s of reference for the conmlltants responsible for inspecting and supervising the works finnnced by the Bank should include the ''environm ent protection'' component. n e passages of sleam s should be given special aqention.

t:IPBCETG' -MBATMA MBAD IM O - EBOLOWA ROAD PROJECT

KEY INTERNATIONAL BOPNDARY * CHIEF TOIQC OF THE PROVINCE . o PRINCIPAL COIO ITIES NATIONAL ROADS larred Earth - - - - - *

.-'..=v1x=v Principal 'Ra'ilway Lines += Qg

< O

' JA *'- >X/ Gd .c < <'r ' h I't'. l' h1 sf- /-x ' GO.

CA.)1CK QI I'ISALYAYDUCEQOLOhA RVT-PRQJSCI S.Q.qrçQ.î- ..:f-.1().fD-ET.at i On The soorces of lnformation zsed in thls project completton report appraisal report. loan agreement N* CS/CM/TR/8i/015'.

works progress report', reporjs on contracts award: documents On population jndic4tors ln Cameroon. 1993) supervlsioù mlssion reports; summary ledger; reportj on the provlslonal and definitlve handlng over of works,' project completion report written by the executing agency; 1991 economlc data from the Forestry Department (Mlnistry of Envlronment and Forestry) #nd the Plannlng and Agrscultural Statistics Department (Miilstry of AGrlculturel; data on vehlcles operatlng costs; data on roads maintenance costs; cesults of traffiz counts by the Highways Departkent (planning dlvision) from 83 to 92; Statlstlcal data on the transport Sector; correspontence archives in the Bank; vlsit to the road in July 1993,* discussion h'lth the highways Department (Hlnlstry of Publhc Hork%) wlth the prolect manager and the Deputy Director. of Hiçhways in the OGTC'. discusslon wlth the Disbursement Department; report of the study on the plan of action for the tevel opment of k'tlra 1 roads conducted by BCEAH in 1987 and updated by the mi n i $ t k'y of P ub 1 i c Horks in 1990: *0 road maintenance budget;

document ,.qn jhe general census on population and housinç 1987 ntl; (Mlnlstry of Plan and Territorial Developyjj iocuments on populatlon indicatör. s on Cameroon in 1993* :' r . ' . and. transport strategy Jn Cameroon A1-'EJ-..3

CAMER.QO' ysAs.dAy.o.c.fsoLoka--ii n pRolic.l &c.tuql-gr)d .erçu:çte-t--lrafr-j.c E xcap t.k -p r.oje (1:d trg.f f 1L

.). 9 22. .1-9 91 20.92 2008 41 5 66O 1021 1472

Eyrpost -prpjkûld -.trèff-it J$32* 1::7 2002 Z-QQ: ?-b Ll Prlvate vehicles 116 1 4 1 1 72 2 1 7 244 Plck-up 69 8 4 102 1 2 9 1 45 Bus 119 1 4 5 l 7 6 2 2 3 2 5 1 Medium-slze lorries 47 57 70 8 8 99 Heavy lorries 3 4 4 6 6 erailers -22 TLC ïI.-Q g22 :/25 Total 366 4 5 42 86 7 )

Actual traffic h O.r1Lt. . -! Page 1 of 2 Lh? LF u0Q: FCA.tM. A.tQ--55.OLOMA..- ROAD EXX ECT EcoqoTlc. .g.n.p-EgJ.se 1 A. Dat; an# .; s : usmtloos--f. QE.. ç.i.l.ç.vlgllng--tt.e e'to-nml!.û

return.. ;f-.tLa prpjkf-t ' V olef-t eç-onoti E cost The actual cost of? works and supervlslon ls 16,816,770 wlthout prlce revlsion instéad of 22,332,000,000 envlsaged at appralsal. Thls actnal cost excludes physlcal contlnjencies which were aot Osed durlng the execution of works and ls dlstributed between 1988 and 1992.

Econofni.c -ùlnef tti-of .' t.hk..pr-ol.e.d Majptjaance -cojj: Current malntenance covers especially clearing, flushlng o? Jltches. plpes. reprofillng. Perlotic maintenance covers especially deforesting, remetalllng, maintenance of bridges and the replacement of the tread layer. In the Gltuatlon without earth road project of difficult features. thls cost ls estlmated at tFA 1 milllon/km/year and CFAF 2,046 million/km/year respectikelt for the current and perlodlc malntenance. In the situation wlth project, current mainteqance is estimated at CFA F 641,0OO/km/yqar correspondlng to the needs of a bituminized road in good state. The periodjc maintenance (doutle layer) envisaged every 8 years ln order to glve the road again û good water-prooflng on the carrlageway ls estimated at CFA F 10 mlllion/km. Jn addition, lt 1$ envlsaged, at the end of IS years to carry out a reinforcement estimated at CFA F 95 milllon/km ln orjer to restore to the carrlageway lts lnltlal qualitjes taking lnto account lncrease ln traffjc. 2.2 Under these condltlons, at the end of the perlod taken jnto account in the economlc calculation, the residual value of the road was estimated at 601 of the base cost of lnltlal investments concernlng the carriageway and at 33ï for the structures. Current maintenance ls envisaged every year Jn the Situations ''without'' and ''with'' project. It has been admltted that the perlodlc malntenance jn the sltuation without qroject is done according to a maxlmum frequency of 5 years stlpulated by the Hlghways Department. In calctllatjng costs and beneflts in the situations ''wlthout'' and ''with'' project. account WaS taken of the actual lengths of tùe road, 1.e. 1O7 km and lO1 km respectlvely. * '> 2 S The quantb f l able benef l ts terl vet f rom annual sai ns the velli c 1 es operati ng costs (VOC) were determi ned on the tas l s of the Uni t VOC def j ned by the Hi ghways Department (HD) and whos: rystr I ts aT'e q ('EJ;) oà the tabl e be 1 ow . The re suits of the se anqpal 6'ynef i t s on the perlod of examl natlon . and l n terms of the l nckease 3 n traff l c are shown be 1 o%' : ' ?j AF.8Ex. .4 ; PRge 2 of

V-qll l c 1.e $ . Qpera.t i p-q..tm .1 L.-LQ.&IS.-(-CFAF./.t;-I. Prl vate Medi um-s i ze Heavy Vaill-c-l-qs (VFl Pi Qk-tm -Qkl.î lorr i e s lorr i e.s Trqilers Earth road poof Jtate 143.8 201.3 544.4 374.3 734 9 39 .. 7 paved roùd 69.3 80.9 313.6 167.8 348.2 4 6 7 . 6 ? slqcct; Hlgbways Department (HD) - Ministry of Pnbllc Horks

B. Cal culatlon of the return Rate of rettjrn ex- post 1 3 .4.31 ex-ante 12.5 Investmqnt Reducti on Benef l ts

Y..e.zE = 1 11.1.: Ln-te-rl a n c e co s t V0C A lance-shxtt

- 5390.267 - 5390,267 - 5067.913 - 5067.913 - 5224,177 - 5224,177 - 9 12 .358 - 912,353 - 222 . 128 42 259 2523.43 343.661 42,259 2624,471 2666,733 42,259 2729,450 2771.709 42,259 2838,628 2880.887 154.181 2952.173 3106.354 42.259 3070,260 3112,519 42,259 3193,070 3235.329 - 903.000 3320,793 2417,793 42,259 3453.625 3495.884 154,181 3591,770 3745.951 42,259 3735,441 3770,700 42;259 3884.858 3927,117 42,259 4040,253 4082.512 42,259 4201.863 4244,122 - 9376.070 4369,937 - 5006,133 42,259 4544.735 4586.994 42.259 4726,524 4768,783 42.259 4915.585 4957.844 42,259 5112,209 5154,468 9360,000 154,181 5316,697 14830,878 IRR = 13.43:

S.ou r.c e : ADB Hisslon

*