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Ment of the World Bank Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1464 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 316.2 MILLION (US$425 MILLION EQUIVALENT) Public Disclosure Authorized TO THE UNITED REPUBLIC OF TANZANIA FOR A DAR ES SALAAM URBAN TRANSPORT IMPROVEMENT PROJECT February 14, 2017 Public Disclosure Authorized Public Disclosure Authorized Transport and ICT Global Practice Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective December 31, 2016) Currency Unit = Tanzania Shillings (TZS) US$1 = TZS 2,179.98 SDR 1 = US$1.344 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AFCS Automated Fare Collection System AfDB African Development Bank BRT Bus Rapid Transit CAG Controller and Auditor General CAS Country Assistance Strategy CBA Cost-Benefit Analysis CBD Central Business District CTCP2 Second Central Transport Corridor Project DA Designated Account DART Dar Rapid Transit Agency DBS Director of Business Support DCC Dar es Salaam City Council DMDP Dar es Salaam Metropolitan Development Project DUTA Dar es Salaam Urban Transport Authority DUTP Dar es Salaam Urban Transport Improvement Project EIRR Economic Internal Rate of Return ERB Engineers Registration Board ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FBS Selection under a Fixed Budget FM Financial Management FYDP Five-Year Development Plan GDP Gross Domestic Product GIS Global Information System GoT Government of Tanzania GRM Grievance Redress Mechanism GRS Grievance Redress Service GRSF Global Road Safety Facility IAD Internal Audit Department IC Individual Consultant ICB International Competitive Bidding ICT Information and Communication Technology IE Impact Evaluation IFR Interim Financial Report IRR Internal Rate of Return ISP Interim Service Provider ITS Intelligent Transportation System JICA Japan International Cooperation Agency JNIA Julius Nyerere International Airport LCS Least-Cost Selection M&E Monitoring and Evaluation MoWTC Ministry of Works, Transport, and Communication NCB National Competitive Bidding NMT Non-motorized Transport NPV Net Present Value NTP National Transport Policy O&M Operation and Maintenance OTPA Open Trip Planner Analyst PAP Project-Affected Person PDO Project Development Objective PO-RALG President’s Office, Regional Administration and Local Government PPP Public-Private Partnership PS Permanent Secretary QCBS Quality- and Cost-Based Selection RAIS Road Accident Information System RAP Resettlement Action Plan RPF Resettlement Policy Framework RSA Road Safety Authority SEAP Structured Engineers Apprenticeship Program STC Short-Term Consultant SUMATRA Surface and Marine Transport Regulatory Authority TANROADS Tanzania National Roads Agency TASAF Tanzania Social Action Fund TAZARA Tanzania Zambia Railway Authority TOD Transit Oriented Development UDA Usafiri Dar es Salaam VOC Vehicle Operating Costs Regional Vice President: Makhtar Diop Country Director: Bella Bird Senior Global Practice Director: Jose Luis Irigoyen Practice Manager: Aurelio Menendez Task Team Leader: Yonas Eliesikia Mchomvu TANZANIA DAR ES SALAAM URBAN TRANSPORT IMPROVEMENT PROJECT TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ....................................................................................................... 1 B. Sectoral and Institutional Context ............................................................................ 2 C. Higher Level Objectives to which the Project Contributes ..................................... 5 II. PROJECT DEVELOPMENT OBJECTIVES ................................................................6 A. PDO.......................................................................................................................... 6 Project Beneficiaries ...................................................................................................... 6 PDO Level Results Indicators ........................................................................................ 6 III. PROJECT DESCRIPTION ..............................................................................................7 A. Project Components ................................................................................................. 7 B. Project Financing ................................................................................................... 11 Project Cost and Financing .......................................................................................... 11 C. Lessons Learned and Reflected in the Project Design ........................................... 12 IV. IMPLEMENTATION .....................................................................................................13 A. Institutional and Implementation Arrangements ................................................... 13 B. Results Monitoring and Evaluation ....................................................................... 14 C. Sustainability.......................................................................................................... 15 Role of Partners............................................................................................................ 15 V. KEY RISKS ......................................................................................................................16 A. Overall Risk Rating and Explanation of Key Risks............................................... 16 Risk Management ........................................................................................................ 16 VI. APPRAISAL SUMMARY ..............................................................................................17 A. Economic and Financial Analysis .......................................................................... 17 B. Technical ................................................................................................................ 19 C. Financial Management ........................................................................................... 23 D. Procurement ........................................................................................................... 23 E. Social (including Safeguards) ................................................................................ 24 F. Environment (including Safeguards) ..................................................................... 27 G. Climate and Disaster Risk Screening ..................................................................... 28 H. World Bank Grievance Redress ............................................................................. 28 Annex 1: Results Framework and Monitoring .........................................................................29 Annex 2: Detailed Project Description .......................................................................................39 Annex 3: Implementation Arrangements ..................................................................................58 Annex 4: Implementation Support Plan ....................................................................................70 Annex 5: Economic and Financial Analyses ..............................................................................73 Annex 6: Synergies with Other Projects in Dar es Salaam City..............................................91 PAD DATA SHEET Tanzania Dar es Salaam Urban Transport Improvement Project (P150937) PROJECT APPRAISAL DOCUMENT AFRICA Transport and ICT Global Practice Report No.: PAD1464 Basic Information Project ID EA Category Team Leader(s) P150937 A - Full Assessment Yonas Eliesikia Mchomvu Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 09-Mar-2017 30-Jun-2023 Expected Effectiveness Date Expected Closing Date 09-Jun-2017 31-Dec-2023 Joint IFC No Practice Senior Global Practice Country Director Regional Vice President Manager/Manager Director Aurelio Menendez Jose Luis Irigoyen Bella Bird Makhtar Diop Borrower: United Republic of Tanzania (Ministry of Finance and Planning) Responsible Agency: TANROADS Contact: Eng. Patrick A.L. Mfugale Title: Chief Executive Telephone No.: (255-22) 2926001 Email: [email protected] Responsible Agency: Dar Rapid Transit Agency (DART) Contact: Eng. Ronald M. Lwakatare Title: Chief Executive Telephone No.: +255 22 2461093/4/6 Email: [email protected] Project Financing Data(in USD Million) [ ] Loan [ ] IDA Grant [ ] Guarantee [ X ] Credit [ ] Grant [ ] Other Total Project Cost: 450.80 Total Bank Financing: 425.00 Financing Gap: 0.00 i Financing Source Amount BORROWER/RECIPIENT 25.80 International Development Association (IDA) 425.00 Total 450.80 Expected Disbursements (in USD Million) Fiscal 2017 2018 2019 2020 2021 2022 2023 2024 Year Annual 10.00 30.00 80.00 90.00 95.00 90.00 25.00 5.00 Cumulati 10.00 40.00 120.00 210.00 305.00 395.00 420.00 425.00 ve Institutional Data Practice Area (Lead) Transport & ICT Contributing Practice Areas Social Protection & Labor, Social, Urban, Rural and Resilience
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