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Tanzania: Tanzam Highway Rehabilitation

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Tanzania: Tanzam Highway Rehabilitation AFRICAN DEVELOPMENT BANK GROUP TANZANIA: TANZAM HIGHWAY REHABILITATION Project Performance Evaluation Report (PPER) OPERATIONS EVALUATION DEPARTMENT (OPEV) 8 March 2004 TABLE OF CONTENTS Page No. Currency Equivalents i Acronyms and Abbreviations i Preface ii Basic Project Data iii Executive Summary vi Summary of Ratings ix 1. THE PROJECT 1 1.1 Country and Sector Economic Context 1 1.2 Project Formulation 2 1.3 Project Objectives and Scope at Appraisal 2 1.4 Financing Arrangements - Bank Group and others 3 2. EVALUATION 4 2.1 Evaluation Methodology and Approach 4 2.2 Performance Indicators 4 3. IMPLEMENTATION PERFORMANCE 5 3.1 Loan Effectiveness, Start-up and Implementation 5 3.2 Adherence to Project Costs, Disbursements & Financing Arrangements 6 3.3 Project Management, Reporting, Monitoring and Evaluation Achievements 6 4. PERFORMANCE EVALUATION AND RATINGS 7 4.1 Relevance of Objectives and Quality at Entry 7 4.2 Achievement of Objectives and Outputs. "Efficacy" 8 4.3 Efficiency 9 4.4 Institutional Development Impact 9 4.5 Sustainability 12 4.6 Aggregate Performance Rating 13 4.7 Performance of the Borrower 13 4.8 Bank Performance 13 4.9 Factors affecting Implementation Performance and Outcome 13 5. ECONOMIC INTEGRATION AND REGIONAL CO-OPERATION 14 5.1 Background 14 5.2 Regional Goals at Appraisal 14 5.3 Achievements 14 6. CONCLUSIONS, LESSONS LEARNT AND RECOMMENDATIONS 17 6.1 Conclusions 17 6.2 Lessons learnt 17 6.3 Recommendations 17 TABLES Table 1: Main Aggregates of the Transport and Communications Sector 1 Table 2: Sources of finances Of the Sixth Highway Rehabilitation Project 3 Table 3: Source of funding of ADF Components 4 Table 4: TZS Trend of inflation and exchange rates 6 Table 5: FY 2001/02 Maintenance Budget 13 Table 6: Tanzania Trade Profile with PTA Countries (Million TZS) 15 BOXES Box 1: TANROADS Commitment 8 Box 2: East African Co-operation Development Strategy 1997-2000 16 ANNEXES Number of pages Annex 1 Retrospective Logical Framework 1 Annex 2 Selected macro-economic Indicators 1 Annex 3 Evaluation Criteria 2 Annex 4 Borrower Performance 1 Annex 5 Bank Performance 1 Annex 6 Factors affecting Implementation Performance and Outcome 2 Annex 7 Recommendations and follow-up matrix 1 ______________________________________________________________ The Project Performance Evaluation Report was prepared by Mr. A. B. SEMANOU, Consultant, following his mission to Tanzania in November 2002. Further enquiries should be addressed to Mr. G. M. B. KARIISA, Director, Operations Evaluation Department, on extension 4052 or Ms. Z. KHORSI, Principal Evaluation Officer on extension 4338 CURRENCY AND MEASURES Currency Equivalents Currency Unit = Tanzania shilling (TZS) At Appraisal At Completion At Post-evaluation UA= 18.25 1106.64 1282.28 TZS WEIGHTS AND MEASURES 1 metric tonne (t) = 2,205 lbs. 1 kilogram (kg) = 2.205 lbs. 1 metre (m) = 3.281 ft 1 foot (ft) = 0.305 m 1 kilometre (km) = 0.621 mile 1 square kilometre (km2) = 0.386square mile 1 hectare (ha) = 0.01 km2 = 2.471 acres FISCAL YEAR July 1 - June 30 LIST OF ABBREVIATIONS ADT = Average Daily Traffic ADB = African Development Bank ADF = African Development Fund BOT = Bank of Tanzania DANIDA = Danish International Development Agency EAC = East African Community ERR = Economic Rate of Return FINNIDA = Finish International Co-operation Agency GDP = Gross Domestic Product GOT = Government of Tanzania IDA = International Development Association (World Bank) MOW = Ministry of Works NORAD = Norwegian Agency for Development PTA = Preferable Trade Arrangement SADC = Southern African Development Community TANLAB = Tanzania Roads Agency Laboratory TANROADS = Tanzania Roads Agency TAZARA = Tanzania-Zambia Railway Authority TRL = Transport Research Laboratory TZS = Tanzania Shillings UA = Bank Unit of Account VOC = Vehicle Operating Costs ii PREFACE 1. This Project Performance Evaluation Report (PPER) is on the performance of the Tanzam Highway Rehabilitation Project in Tanzania. 2. In November 1987, ADF Loan N° TZ/TR(RD)87/16 in the amount of UA 17.68 million was approved for the Project. 3. The Tanzam Highway Rehabilitation Project was formulated as a component of the overall Sixth Highway Rehabilitation Project of the World Bank; at appraisal, the co- financiers were IDA, DANIDA, NORAD and ADF. 4. ADF financed Sections 1 and 3 of the Tanzam Highway Rehabilitation as well as the related consultancy services. 5. The objectives of the project, among others, were to rehabilitate deteriorated sections of the Tanzam Highway and high priority sections of the country's gravel road network serving the most productive agricultural areas and strengthen the activities of the MOW. 6. The Project was completed and a Project Completion Mission was conducted in November 1999 and the Project Completion Report (PCR) was finalised in January 2002. The PCR provided adequate assessment of the implementation experience and the overall performance of the project. 7. The evaluation report is the result of a post evaluation mission undertaken in November 2002. The information contained herein is based on discussions with Tanzania Government officials, a visit to the project site, information from the appraisal, Borrower and Bank PCR reports as well as from project documents and Bank files. This Project Performance Evaluation Report (PPER) was prepared in order to highlight the overall performance of the Road, and its contribution to enhancing trade and communication with neighbouring countries. This PPER will also serve as an input to the Study on Contribution of Infrastructure Development to Economic Integration and Regional Co-operation to be undertaken by the Bank in 2003. 8. The overall assessment in both the Bank PCR and this PPER shows an unsatisfactory project performance outcome. 9. The draft of this report was submitted for comments to both the Operational Departments of the Bank and to the Borrower and their comments were taken into account in the final version of the report or attached as annex to this report. iii BASIC PROJECT DATA 1. Country : Tanzania 2. Project Title : Tanzam Highway Rehabilitation Project 3. Loan Number : TZ/TR(RD)87/16 4. Borrower : United Republic of Tanzania. 5. Beneficiary : Ministry of Works 5. Executing Agency : Ministry of Works A. THE LOAN APPRAISAL ESTIMATE ACTUAL 1. Amount (UA Million): 17.68 17.67 2. Loan Approval Date: - February 1987 3. Loan Signature Date - November 1987 4. Date of Entry into Force: May 1988 March 1989 B PROJECT DATA 1. Financing Plan UA Million Source Appraisal Estimate Actual FE LC Total % FE LC Total % ADF 17.68 0 17.68 75.4 17.67 0 17.67 83.5 GOT 0 5.76 5.76 24.6 0 3.49 3.49 16.5 Total 17.68 5.76 23.44 100 17.67 3.49 21.16 100 Estimate Actual 2. Date of First Disbursement June 1987 December 1989 3. Date of Last Disbursement December 1992 August 1998 C. IMPLEMENTATION PERFORMANCE INDICATORS Cost Overrun 54% (Necessitating reduction of scope of works) Time Overrun Slippage on Effectiveness 9 months Slippage on Completion Date: 50 months Slippage on Last Disbursement. 68 months Number of Extensions of Last Disbursement: 2 Project Implementation Status Completed D. MISSIONS iv Number of Activity Period Persons Composition Man/Day 1. Appraisal 01/86 2 Engineer/ 28 Economist 2. Supervision 10/89 2 Engineer/Economi 28 st 2/90 2 Engineer/Economi 28 st 03/91 3 Engineer/Economi 54 st/Financial Analyst 06/92 3 Engineer/Economi 30 st/External Bureau 01/93 7 Engineer 80 Economist Deputy Director Director Country Programme Officer 2 Legal Officers . 11/93 1 Director 7 01/94 1 Engineer 7 01/95 2 Division Chief 20 Engineer 11/95 2 Economist 28 Engineer 10/96 1 Engineer 11 3. PCR 11/99 2 Engineer 14 Economist 4. PPER 11/02 1 Engineer 11 E. DISBURSEMENTS Appraisal % Estimate Actual Disbursed 1. Total disbursed (UA million) 17.68 17.67 99.94 2. Unused balance (UA million) 0 0.01 0.06 v Bank Group Financed Projects in Tanzania : As at 11/07/2002 : (UA) STATUS Operations Completed On-going SECTOR Instrument Nb. Loan Approved Nb. Disbursed Nb. Disbursed Agriculture & Rural Development PL 13 124,103,081 9 80,279,427 4 43,823,654 TA 2 998,789 1 506,026 1 492,763 GA 3 1,866,009 3 1,866,009 Total 18 126,967,879 10 80,785,453 8 46,182,426 Industry, Mining & Quarries PL 2 3,279,500 2 3,279,500 SA 1 27,631,560 1 27,631,560 0 0 GA 1 702,394 1 702,394 Total 4 31,613,454 1 27,631,560 3 3,981,894 Transport PL 13 195,005,195 10 112,355,195 3 82,650,000 SI 1 9,750,000 1 9,750,000 GA 4 8,612,626 2 6,078,943 2 2,533,683 Total 18 213,367,821 12 118,434,138 6 94,933,683 Water & Sewerage PL 6 69,017,621 5 32,077,621 1 36,940,000 TA 2 1,197,367 2 1,197,367 0 0 GI 1 1,310,000 1 1,310,000 GA 3 3,320,789 1 690,789 2 2,630,000 Total 12 74,845,777 8 33,965,777 4 40,880,000 Energy PL 5 62,217,072 3 33,190,772 2 29,026,300 GA 3 5,870,000 1 2,500,000 2 3,370,000 Total 8 68,087,072 4 35,690,772 4 32,396,300 Communication PL 3 32,611,827 3 32,611,827 0 0 Total 3 32,611,827 3 32,611,827 0 0 Finance LC 3 9,500,000 2 4,500,000 1 5,000,000 Total 3 9,500,000 2 4,500,000 1 5,000,000 Social PL 5 55,007,364 1 6,447,364 4 48,560,000 GI 1 1,010,000 1 1,010,000 GA 4 3,903,420 2 1,243,420 2 2,660,000 Total 10 59,920,784 3 7,690,784 7 52,230,000 Multisector PL 1 5,910,000 1 5,910,000 SI 1 28,552,612 1 28,552,612 0 0 SL 3 112,631,560 3 112,631,560 GA 1 736,842 1 736,842 FM 2 1,170,000 2 1,170,000 Total 8 149,001,014 1 28,552,612 7 120,448,402 Total PL 48 547,151,660 31 296,962,206 17 250,189,454 LC 3 9,500,000 2 4,500,000 1 5,000,000 SI 2 38,302,612 1 28,552,612 1 9,750,000 SL 3 112,631,560 3 112,631,560 SA 1 27,631,560 1 27,631,560 0 0 TA 4 2,196,156 3 1,703,393 1 492,763 GI 2 2,320,000 2 2,320,000 GA 19 25,012,080 6 10,513,152 13 14,498,928 FM 2 1,170,000 2 1,170,000 Total 84 765,915,628 44 369,862,923 40 396,052,705 Source : OPEV – SAP Subtract PL : Loan LC : Line of Credit SI : Sectoral Investment or Rehabilitation Loan SL : Structural Adjustment Loan SA : Sectoral Adjustment Loan TI : Institutional Support and Rehabilitation Loan TA : Project Cycle Loan GI : Institutional Support and Rehabilitation Grant GA : Project Cycle Grant vi EXECUTIVE SUMMARY 1.
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