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Ebonyi State Ring Road Project Country

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Ebonyi State Ring Road Project Country AFRICAN DEVELOPMENT BANK Public Disclosure Authorized PROJECT: EBONYI STATE RING ROAD PROJECT COUNTRY: NIGERIA PROJECT APPRAISAL REPORT Disclosure Authorized Public RDNG/PICU April 2019 TABLE OF CONTENTS I – STRATEGIC THRUST & RATIONALE ....................................................................... 1 1.1. Background ..................................................................................................................... 1 1.2. Project linkages with country Strategy ........................................................................... 1 1.3. Rationale for Bank’s involvement .................................................................................. 2 1.4. Donor coordination ......................................................................................................... 3 II – PROJECT DESCRIPTION ............................................................................................. 4 2.1. Project components ......................................................................................................... 4 2.2. Technical solution retained and other alternatives explored ........................................... 4 2.3. Project type ..................................................................................................................... 5 2.4. Project cost and financing arrangements ........................................................................ 5 2.5. Project’s target area and population ................................................................................ 6 2.6. Participatory process for project identification, design and implementation ................. 7 2.7. Bank Group experience, lessons reflected in project design .......................................... 7 2.8. Key performance indicators ............................................................................................ 8 III – PROJECT FEASIBILITY ............................................................................................. 8 3.1. Economic and financial performance ............................................................................. 8 3.2. Environnemental and Social impacts .............................................................................. 9 IV – IMPLEMENTATION ................................................................................................... 12 4.1. Implementation arrangements ....................................................................................... 12 4.2. Monitoring .................................................................................................................... 14 4.3. Governance ................................................................................................................... 15 4.4. Sustainability................................................................................................................. 15 4.5. Risk management .......................................................................................................... 16 4.6. Knowledge building ...................................................................................................... 17 V – LEGAL INSTRUMENTS AND AUTHORITY ........................................................... 17 5.1. Legal instruments .......................................................................................................... 17 5.2. Conditions associated with the Bank’s intervention ..................................................... 17 5.3. Compliance with Bank Policies .................................................................................... 18 VI – RECOMMENDATION ................................................................................................ 18 APPENDICES Appendix I: Country’s comparative socio-economic indicators (Dec 2018) .............................I Appendix II: Table of Bank’s portfolio in the country (Feb 2019) .......................................... II Appendix III: Key related projects financed by the Bank and other development partners in the country ............................................................................................................................... IV Appendix IV: Map of the Project Area ..................................................................................... V Appendix V: Justification for Government Contribution of Less Than 50% .......................... VI Currency Equivalents As of February 2019 1 UA = 427.893 NGN 1 UA = 1.40070 USD 1 USD = 305.48511 NGN Fiscal Year 1 January – 31 December Weights and Measures 1metric tonne = 2204 pounds (lbs) 1 kilogramme (kg) = 2.200 lbs 1 metre (m) = 3.28 feet (ft) 1 millimetre (mm) = 0.03937 inch (“) 1 kilometre (km) = 0.62 mile 1 hectare (ha) = 2.471 acres Acronyms and Abbreviations AADT Annual Average Daily Traffic FRN Federal Republic of Nigeria AC Asphaltic Concrete FM Financial Management ADB African Development Bank FMF Federal Ministry of Finance ADF African Development Fund FRN Federal Republic of Nigeria AGTF Africa Growing Together Fund HIV Human Immunodeficiency Virus AIDS Acquired Immune Deficiency Syndrome IPSAS International Public Sector Accounting Standards CBO Community-Based Organization IsDB Islamic Development Bank CRSG Cross River State Government LGA Local Government Area CSP Country Strategy Paper MT Metric Tonne DBST Double Bitumen Surface Treatment NGN Nigerian Naira DP Development Partner NGO Non-Governmental Organization DPG-T Development Partners Group – Transport NPV Net Present Value EA Executing Agency NV 20:2020 Nigeria Vision 20:2020 EBROMA Ebonyi State Road Maintenance PAP Project Affected Persons EIRR Economic Internal Rate of Return RAP Resettlement Action Plan ERGP Economic Recovery and Growth Plan RCC Reinforced Cement Concrete ESG Ebonyi State Government RDNG Nigeria Country Department of AfDB ESIA Environmental and Social Impact SPIU State Project Implementation Assessment Unit ESMOW&T Ebonyi State Ministry of Works and SPN Specific Procurement Notice Transport ESMP Environmental and Social Management Plan TB Tuberculosis EU European Union UA Unit of Account FE Foreign Exchange VOC Vehicle Operating Costs i Loan Information Client’s information BORROWER: Federal Republic of Nigeria EXECUTING AGENCY: State Project Implementation Unit (SPIU) of State Ministry of Works and Transport Financing plan Source Amount (USD) Amount (NGN) Instrument ADB 40.00 million 12.22 billion Loan AGTF 30.00 million 9.16 billion Loan IsDB 80.00 million 24.44 billion Loan ESG 17.66 million 5.40 billion Counterpart Fund TOTAL COST 167.66 million 51.22 billion ADB/AGTF key financing information AFDB AGTF Currency United-States Dollars (USD) United-States Dollars (USD) Loan Type Fully Flexible Loan Fully Flexible Loan Up to 25 years inclusive of Grace Maturity Up to 25 years inclusive of Grace Period Period Grace period Up to 8 years Up to 8 years Base Rate + Funding Cost Margin + Base Rate + Funding Cost Margin + Lending Margin + Maturity Premium Interest Rate Lending Margin + Maturity Premium This Interest Rate will be floored to This Interest Rate will be floored to zero zero Floating Base Rate (6 month Floating Base Rate (6 month LIBOR reset LIBOR reset each 1st February and each 1st February and 1st August) Base Rate 1st August) A free option to fix the Base Rate is A free option to fix the Base Rate is available available Lending 80 basis points (0.8%) per annum 80 basis points (0.8%) per annum Margin Maturity Function of Average Maturity Function of Average Maturity Premium 0.25% of the total amount of the Loan 0.25% of the total amount of the Loan shall shall be due on entry into force of the be due on entry into force of the Loan, and Loan, and payable at the earliest of, (i) Front-end fees payable at the earliest of, (i) up to 60 days up to 60 days from the Date of entry from the Date of entry into force of the Loan, into force of the Loan, or (ii) at the or (ii) at the time of first disbursement. time of first disbursement. 0.25% per annum of the undisbursed 0.25% per annum of the undisbursed amount. amount. Commitment fees start Commitment Commitment fees start accruing 60 days after accruing 60 days after signature of the fees signature of the loan agreement and are loan agreement and are payable on payable on Payment Dates Payment Dates ii In addition to the free option to fix the In addition to the free option to fix the Option to floating Base Rate, the Borrower may floating Base Rate, the Borrower may convert the reconvert the fixed rate to floating or reconvert the fixed rate to floating or refix it Base Rate refix it on part or full disbursed on part or full disbursed amount. Transaction amount. Transaction fees are payable. fees are payable. The Borrower may cap or set both cap The Borrower may cap or set both cap and Option to cap and floor on the Base Rate to be floor on the Base Rate to be applied on part or collar the applied on part or full disbursed or full disbursed amount. Transaction fees Base Rate amount. Transaction fees are payable. are payable. The Borrower may convert the loan currency for both undisbursed and/or Option to disbursed amounts in full or part to convert N/A another approved lending currency of loan currency the Bank. Transaction fees are payable. Economic Indicators SECTION INDICATOR Section I:135 Ohaukwu-Onueke EIRR (base) = 20.3%, NPV (base) = USD 34.99 million Section II: Onueke - Nwezenyi. EIRR (base) = 27.7%, NPV (base) = USD 70.53 million Section III: Nwezenyi - Ndoko EIRR (base) = 14.5%, NPV (base)
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