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World Bank Document 1 PID THE WORLD BANK GROUP AWvrId Froialt7 Prvrty Public Disclosure Authorized InfoShop Report No: AB92 Initial Project Information Document (PID) Project Name ZAMBIA-Second Project to Support ROADSIP Region Africa Regional Office Sector Roads and highways (70%); Sub-national government administration (10%); Central government administration (10%); General transportation sector (10%) Project ID P071985 Supplemental Project Public Disclosure Authorized Borrower(s) REPUBLIC OF ZAMBIA Implementing Agency NATIONAL ROADS BOARD ON BEHALF OF GOVERNMENT Address Government of Zambia Address: P. 0. Box 50695, Fairley Road, Zambia Contact Person: Mr. Gananadha, Executive Secretary Tel: 2601/253088 Fax: 2601/253154 Email: [email protected] Ministry of Communications and Transport Address: Contact Person: Dr.Kwendakwema, Acting Permanent Secretary Tel: 2601/251444 Fax: 2601/253260 Email: Public Disclosure Authorized Ministry of Works and Supply Address: Contact Person: Lt. Col. Nkunika, Permanent Secretary Tel: 2601/253447 Fax: 2601/253404 Email: Environment Category B Date PID Prepared April 22, 2003 Auth Appr/Negs Date September 30, 2003 Bank Approval Date March 9, 2004 1. Country and Sector Background Sector overview. The transport sector in Zambia forms the backbone of the country's economy, as it is central to the promotion of local, regional and international trade. The Public Disclosure Authorized transport network in Zambia is comprised of five distinct modes of transportation, i.e, rail, road, civil aviation, inland water transport and pipeline. An overview of the Zambia's major modes of transport reveals that rail and road account for the movement of three quarters of total import and exports. Approximately 2.2 million tons of imports and 2 PID exports are transported by roads as compared to only 400,000 tons by rail. Road transport has been identified as a major factor within the Government's overall policy framework to enhance economic development and growth. Road transport covers the most extensive area in Zambia since the railway network covers only a small portion of the country. In the past poor performance of the state owned enterprises held back transport. More recently, the freight industry performed fairly well with the increased participation of the private sector. Also reforms in the rail sector including concessioning of main freight and passenger service should enhance performance. Road network. Zambia has a gazetted road network just under 37,000 kilometers (6,475 km bituminous, 8,480 km gravel and 21,970 km earth). In addition, there are estimated 30,000 km non-gazetted community roads comprising tracks, trails, and footpaths. A large part of the main road network was constructed between 1965 and 1975. It was designed to support projected internal development rather than to take advantage of the strategic location of Zambia in the sub-region. The geography of Zambia is such that access to many parts of the country and neighboring countries involved crossing of rivers. In areas where bridges have not been constructed, pontoons and ferries are used. Most pontoons in Zambia are more that 40 years old and their carrying capacity ranges from 12 to 1 00 tons. An additional challenge posed by Zambia's geography is securing cost effective access to the rural population, which is quite scattered and in large part is isolated from markets and services. Road policy and management: The Ministry of Communication and Transport (MCT) is responsible for overall policy formulation and monitoring of the transport sector. In addition, MCT presently oversees the operation of a number of transport related corporate bodies and institutions which include the National Roads Board (NRB) and the National Road Safety Council (NRSC). The Road Fund (RF) was established in 1993 and has been administered since October 1994 by NRB. The Ministry of Works and Supply (MoWS) is responsible for the trunk, main and district roads. The local authorities with the technical support of the Ministry of Local Government and Housing (MoLH) are responsible for feeder roads and urban roads. The Zambia Wildlife Authority (ZAWA) under the Ministry of Tourism is responsible for the tourist roads (about 7,200 km) in national parks, game management areas, and cultural heritage sites of the national interest. Most of the tourist roads are in very poor condition due to a lack of maintenance since they were constructed. There is a substantial un-gazetted road network which is vital to the communities it serves. Some progress has been made to provide a maintenance funding allocation from the Road Fund where community participation has been secured. Ownership and responsibility for such roads remains to be clarified however. In the Transport Policy of May 2002, the cabinet has approved a new institutional framework for road sector management. This involves inter alia the establishment of three new bodies - the National Road Fund Agency (under the Ministry of Finance and National Planning - MoFNP), the Road Development Agency (under MoWS) and the Road Transport and Safety Agency (under MCT). The supporting legislation was passed by Parliament in December 2002. The govemment is in the process of preparing a transitional plan to implement the new framework, assure the smooth transfer of functions 3 PID and provide adequate funding such that the agencies can be operational from fiscal year 2004. The project will support the transitional arrangements as well as provide assistance in the initial implementation of the reformed structures. Achievement in the roads network and sector management since 1992. Since 1992, assistance from the Bank and other donors in the roads sector have supported major achievements in institutional reforms and in improving road network condition. The Bank has made a contribution to these efforts, through its support to the Road Management Initiative (RMI), the Rural Travel and Transport Program (RTTP), through the IDA- financed Technical Engineering and Technical Assistance Project (TETAP), and the IDA financed Project to Support to ROADSIP Phase 1. Supporting institutional and policy reforms in the road management and financing, was initiated through RMI, and particularly a workshop held in February 1993, which developed a broad consensus for creation of RF and NRB under the overall policy guidance from MCT. Further institutional support has been rendered to bring rural and community roads in the mainstream of the road management; RTTP is playing an active role in promoting mobility and enhancing its impact on poverty reduction in the rural areas. Through TETAP, an IDA credit effective in 1993 and closed in 1998, the Bank tendered support to a number of preparatory activities required for launching of a comprehensive investment program in the road sector including strengthening management and financing of roads; supporting feeder and urban road management in MoLGH, establishing a highway management system (HMS) in the Roads Department (RD); and carrying out studies aimed at developing local construction industry and promoting improvements in plant and equipment management. IDA support to ROADSIP Phase I, becoming effective in 1998 and due to complete in early 2004, supported policy reforms, institutional strengthening, and capacity building through: (a) technical assistance (TA) in the management support services to NRB; (b) continued TA support to strengthen management of feeder roads and urban roads in MoLGH; (c) developing RD institutional capacity in environmental analysis and monitoring, contract management, financial management, equipment management, and HMS; (d) strengthening the NRSC, developing a road safety action plan and improving axle load management; (e) streamlining management of the RF and diversifying road user charges; (f) starting a pilot IMT program to improve rural transport mobility; (g) providing TA support in establishing the National Construction Council (NCC); and (h) providing TA support for implementing a community transport infrastructure program under the Social Recovery Project (later ZAMSIF). Other institutional and policy reforms as agreed in the letter of sector policy were initiated, but implementation was delayed by the fact that a comprehensive Transport Policy was only approved by Cabinet in April 2002. These reforms include: restructuring of road agencies, adjustment of fuel levy to match maintenance needs, channeling all road users charges through RF, and immediate transfer of fuel levy collected by MoFNP to RF. Implementation of the Transport Policy is now moving forward rapidly. Enabling legislation for the establishment of the new road agencies has been passed. The next step is to prepare a financial strategy and to 4 PID implement measures to address the maintenance funding shortfall (see below). Under ROADSIP Phase 1, over 1,400 km of trunk, main, district, urban and feeder roads have been rehabilitated, 6,400 km of roads have received periodic maintenance, 1,500 km of community roads have received accessibility improvement. Its positive impact has been registered with, for example, the percentage of paved roads in good condition having risen from 21% in 1995 to 46% by the end of 2001. Performance is generally in line with agreed targets with the exception of feeder roads. 300 routine maintenance contractors have been trained and substantial progress has been made towards meeting the 14,000 jobs creation target by 2002. In the year 2001, RD started using performance based contract procedures for carrying
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