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World Bank Document Document of The World Bank Public Disclosure Authorized Report No. 19023- SE PROJECT APPRAISALDOCUMENT Public Disclosure Authorized ONA PROPOSED CREDIT IN THE AMOUNT OF SDR 64.3 MILLION (US$90MILLION) EQUIVALENT TO THE REPUBLIC OF SENEGAL FOR A SECOND TRANSPORT SECTOR PROJECT Public Disclosure Authorized March 10, 1999 Transport 2 Country Department 14 Africa Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Average Exchange Rate Effective as of February 22, 1999) Currency Unit CFA Franc CFAF 1= US$0.0017 US$ 1 CFA Franc 550 FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS ASECNA Agency for Air Security in Africa and Madagascar (4gence pour la SecuriteAerienne en Afrique et Madagascar) CAS Country Assistance Strategy CELCO Project Coordination Unit (Cellule de Coordination du PST II) CEREEQ Center for Road Research and Quality Control DAC Civil Aviation Department (Direction de lAviation Civile) DTP Department of Public Works (Direction des Travaux Publics) DTT Land Transport Department (Direction des Transports Terrestres) GIS Geographical Information System GOS Government of Senegal LSPl/2 Policy Letter for the Transport Sector I or 2 LSS Leopold Sedar Senghor Airport (Dakar Airport) MEFP Ministry of Economy, Finance and Plan (Ministere de I 'Economie, des Finances et du Plan) MPTM Ministry of Fisheries and Maritime Transport (Ministere de la Peche et des Transports Maritimes METT Ministry of Equipment and Land Transport (Ministere de I 'Equipement et desTransports Terrestres) MTTA Ministry of Tourism and Air Transport (Mnistere du Tourisme et des Transports Ariens) PAST Transport Sector Adjustment Program (Programme d Ajustement Sectoriel des Transport) PEM Project Execution Manual PST2 Second Transport Sector Project (Deuxieme Projet Sectoriel des Transports) SETI International Rail Operating Company (Societe d'Exploitation de Trafic International) SONAPAD National Port Company (Societe Nationale du PortAutonome de Dakar) SNCS National Railroad Company (Societe Nationale des Chemins de Fer du Senegal) RMRP Three-Year Rolling Road Maintenance and Rehabilitation Program RFARB Road Fund Advisory and Review Board WPB Annual Work Program and Budget Vice President: Jean Louis Sarbib Country Director: Mahmood Ayub Sector Manager: Maryvonne Plessis-Fraissard Task Team Leaders: Emmanuel Mbi & Jaffar Bentchikou REPUBLIC OF SENEGAL SECOND TRANSPORTSECTOR PROJECT (PST 2) CONTENTS ProjectAppraisal Document 1 A. ProjectDevelopment Objective 2 1. Projectdevelopment objective and key performanceindicators (see Annex 1) 2 B. StrategicContext 2 1. Sector-relatedCountry Assistance Strategy (CAS) goals supportedby the project (see Annex 1) 2 2. GovernmentStrategies and Main sectorissues 3 3. GovernmentStrategy 3 4. Main SectorIssues, Issues to be addressedby the project and strategicchoices 4 C. Project Description Summary 9 1. Project components 11 2. Key policy and institutionalreforms supported by the project 14 3. Benefitsand target population 14 4. Institutionaland implementationarrangements: 15 D. Project Rationale 17 1. Project alternativesconsidered and reasonsfor rejection 17 2. Majorrelated projectsfinanced by the Bank and/orother developmentagencies (completed,ongoing and planned) 18 3. Lessonslearned and reflectedin the project design 18 4. Indicationsof borrowercommitment and ownership 20 5. Value added of Bank supportin this project 21 E. Summary Project Analysis 21 1. Economic(supported by Annex 4) 21 2. Financial(see Annex 5) 23 3. Technical 24 4. Institutional 25 5. Social and Poverty Impact (see Annex 4F) 25 6. Environmentalassessment (see Annex 2C) 26 7. Participatoryapproach 26 F. Sustainability and Risks 27 1. Sustainability 27 2. Critical Risks 28 3. PossibleControversial Aspects 29 G. Main Loan Conditions 29 1. EffectivenessConditions 29 2. Other 29 H. Readiness for Implementation 31 I. Compliance with Bank Policies 32 ANNEXES Annex 1 Project Design Summary Annex 2A Project Description Annex 2A bis Descriptionof Project Financedby IDA Annex2B AnnualWork Program and BudgetPlanning and ReviewProcess Annex 2C EnvironmentalEvaluation/Action Plan Annex 3A EstimatedProject Costs Annex 3B Project FinancingPlan Annex 4 Cost-BenefitProgram Analysis Annex 4A CostBenefit Analysis Summary- RoadMaintenance, Rehabilitation & Construction Annex 4B CostBenefit Analysis Summary - RailwaysComponent Annex 4C CostBenefit Analysis Summary - Ports Subcomponent Annex 4D CostBenefit Analysis Summary - Civil Aviation(Airports/Safety Subcomponent) Annex 4E Economic/Impact/RiskAssessment Summary - LandTransport Annex 4F Social and PovertyImpact Summary Annex SA FinancialSummary for RevenueEarning Project Entities:Port Autonomede Dakar Annex 5B FinancialSummary for RevenueEarning Project Entities:AANS (Airports Mgmt.) Annex SB Privatizationof Airportmanagement: Timetable of Actions Annex 5C Financial Summaryfor RevenueEarning Project Entities:Air Senegal Annex 5C bis Privatizationof Air Senegal:Timetable of Actions Annex 5D FinancialSummary for RevenueEarning ProjectEntities: CEREEQ Annex SE FinancialSummary for RevenueEarning Project Entities:SNCS Annex 6 Procurementand Disbursement Arrangements Annex 6: TableA Project Costs by ProcurementArrangements Annex 6: Table B Thresholdsfor ProcurementMethods and Prior Review Annex 6: TableC Allocationof Loan Proceeds Annex 7 Project ProcessingBudget and Schedule Annex 8 Documentsin the Project File* Annex 9 Statementof Loans and Credits Annex 10 Senegalat a Glance Annex 11 SenegalTransport Sector at a Glance(Highlights) APPENDIX Appendix1 Letter of SectorPolicy MAP REPUBLICOF SENEGAL SECOND TRANSPORTSECTOR PROJECT (PST II) Project Appraisal Document Africa Region- CountryDepartment 14 Date: March 10,1999 Cluster LeademWTaskManagers: EmmanuelMbi & Jaffar Bentchikou CountryDirector MabmoodAyub Sector Manager MaryvonnePlessis-Fraissard Project lD:SN-PE-2366 Sector. Transport Program Objective Category:ESSDIPSD Lending instrument SIL Program of Targeted Intervention: [xi Yes rI No Project Financing Data [] Loan [xl Credit [1 Guarantee f I Other [Specfy] For LoanslCredits/Others Amount (US$m/SDRm):US$90 million/SDR64.3 million Proposedterms: [x I Multicurrency fi Single currency:specify Grace period (years): 10 [] Standard Variable [x] Fixed [] LIBOR-based Years to maturity: 40 Commitmentfee: Standard IDA Service charge: 0.75% Financing plan (USSm): Source Local Foreign Total Goverunent 133.2 - 133.2 Cofinanciers 54.5 278.5 333.0 1BRD N/A N/A N/A IDA 8.5 81.5 90.0 Other: -(Public Enterprises-SNCS,PAD, ASECNA) 24.8 - 24.8 Total 221.0 360.0 581.0 Borrower: Govemmentof Snegal (GOS) Guarantor NA Responsibleagency(ies): Overight: Ministry of Finance (MEFP) in collaborationwith Ministries of Equipmentand Land Transport(MET), Tourinsmand Air Transport(MrTA), Fisheries and Maritine Transport (MPIT), PM's Office . Day-o-dy Coonlinafion:Program Coordination Unit (CELCO).Execuffon of Components/Activities.Department of Land Transport (DTM; Departmentof Public Works (DTP)Road Works Authority(AAGTR-4o be created),Vocational Training Center of MEUT (CFP-METI); Road Research and Quality ControlLaboratory (CEREEQ);Port of Dakar (PAD); Dept of MerchantMarine (DMM); Civil Aviation (DACXMeteorological Dept (DMA);AANS (ASECNA- S&ndgal),SONATRA (Air Senegal); CELCO(rural trans.& environ. components);,MEFP &METT(Road Fund rest.); State Portfolio Management Unit-CGCPE-MEFP(privatizations); Prime Mnister's Office with CELCO support (process of creation of Road Agency) Estinated disbursements(Bank FYIMSSM): 2000 2001 2002 2003 2004 2005 Annual 10.00 15.00 20.00 20.00 13.00 12.00 Cumulative 10.00 25.00 45.00 65.00 78.00 90.00 For Guarantees: [] Partial credit [] Partial risk Proposedcoverage: N/A Project sponsor Nature of underlying fnancing: Terms of financing: Principal amount (USS) Final maturity Amortizationprofile Financing availablewithout guarantee?: [1 Yes [ No If yes, estimated cost or maturity: Estimated financingcost or maturity with guarantee: Project implementaton period: 5.5 years. Expected effectivenessdate: July 1, 1999.Expected closing date: June 30,2005 1 A. Project DevelopmentObjective 1. Project development objective and key performance indicators (see Annex 1) 1.1 The DevelopmentObjective of the SecondTransport Sector Project (PST2)in Senegalis to obtain a sustainable improvementin the supply and performance of transport infrastructure (includingservices), in order to create an environmentfor improved economicgrowth through exanded access and reducedtransport costs. This objectivewill be pursuedby supportingfurther institutionalreforms and policy enhancementsin the sector and by removing major physical constraints, allowing for the consolidation and further development of those achievements realizedunder the TransportSector Adjustment/InvestmentProgram (PAST--IDA Cr. 2266-SE). The proposedproject has the followingspecific objectives: * stabilizeand improvethe conditionof the priorityroad network,reducing the long-run economiccosts for road maintenanceand rehabilitationin order to enhanceregional competitivenessand attain sectoralfinancial sustainability; * increasethe numberof districtcapitals with accessto all-weatherroads; * strengtheninstitutional capacity, financialviability and operationalefficiency of the agenciesof the sector; * encouragemore direct private sector involvementin investmentand managementof the sector;and * reducetransport cost for the poor. 1.2 Key performanceindicators are: (i) reductionin freight rates and vehicle operatingcosts;
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