AFRICAN DEVELOPMENT BANK GROUP

MULTINATIONAL

Public Disclosure Authorized MANO RIVER UNION: LIBERIA-COTE D’IVOIRE: ROAD DEVELOPMENT AND TRANSPORT FACILITATION PROGRAMME -

PHASE 2

PICU/RDGW DEPARTMENTS

September 2018

Public DisclosurePublic Authorized

TABLE OF CONTENTS

I. Strategic Thrust and Rationale ...... 1 1.1 Programme Linkages with National and Regional Strategies ...... 1 1.2 Rationale for Bank's Involvement ……...……………………………………………2 1.3 Donors Coordination ...... 2 II. Programme Description...... 3 2.1 Programme Objectives and Components ...... 3 2.2 Technical Solutions Adopted and Alternative Solutions Considered ...... 4 2.3 Programme Type……………………………………………………………………..5 2.4 Programme Cost and Financing arrangement ...... 5 2.5 Programme target areas and Population ...... 7 2.6 Participatory process to Programme Identification, Design and Implementation ...... 7 2.7 Bank Group Experience and Lessons Reflected in Programme Design ...... 8 2.8 Programme Performance Indicators ...... 8 III. Programme Feasibility ...... 8 3.1 Economic and Financial Performance...... 8 3.2 Environmental and Social Impacts ...... 9 3.3 Fragility Assessment ...... 11 IV. Implementation ...... 12 4.1 Implementation Arrangements ...... 12 4.2 Monitoring ...... 15 4.3 Governance...... 16 4.4 Sustainability ...... 16 4.5 Road Sector Financing ...... 17 4.6 Risk Management ...... 18 4.7 Knowledge Building ...... 18 V. Legal Framework ...... 18 5.1 Legal Instrument ...... 18 5.2 Conditions Associated with Bank’s Intervention ...... 18 5.3 Compliance with Bank Policies ...... 22 VI. RECOMMENDATIONS ...... 22 6.1 Recommendations ...... 22

Annex I. Comparative Socio-economic Indicators of the Two Countries Annex II. Table of Bank Group Operations in the Two Countries Annex III. Programme Costs Annex IV. Map of the Programme Area

CURRENCY EQUIVALENTS

April 2018

UA 1.00 = LD 132 UA 1.00 = USD 1.42 UA 1.00 = EUR 1.19

WEIGHTS AND MEASURES

Metric System

1 metric tonne = 2 204 pounds 1 kilogramme (kg) = 2.2 pounds 1 metre (m) = 3.281 feet 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.621 miles 1 hectare (ha) = 2.471 acres

GOVERNMENT FISCAL YEAR

1 July – 30 June (Liberia)

1 January – 31 December (Côte d’Ivoire)

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Acronyms and Abbreviations ADF African Development Fund AIDS Acquired Immune Deficiency Syndrome AfT Agenda for Transformation AfIF Africa Investment Facility COLR Liberia Country Office CPIA Country Political and Institutional Assessment CSP Country Strategy Paper ECOWAS Economic Community for West African States EIRR Economic Internal Rate of Return FTHRP Fish Town – Harper Road Project EIB European Investment Bank ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU-AIP European Union Africa Investment Platform FM Financial Management GAC General Auditing Commission GDP Gross Domestic Product GoL Government of Liberia HIV Human Immunodeficiency Virus ICB International Competitive Bidding IRR International Rate of Return JAS Joint Assistance Strategy JICA Japan International Cooperation Agency LISGIS Liberia Institute of Statistics and Geo-Information Services M&E Monitoring and Evaluation MPW Ministry of Public Works MRU Mano River Union MRU- Mano River Union - Road Development and Transport Facilitation Programme RDTFP OPA Observatory of Abnormal Practices PAP Project Affected People PAGoDA Pillar Assessed Grant or Delegation Agreement PAR Project Appraisal Report PBA Performance-based Allocation PCN Project Concept Note PCR Project Completion Report PFMU Project Financial Management Unit PIDA Programme for Infrastructure Development in Africa PIU Programme Implementation Unit PAPD Pro-Poor Agenda for Prosperity and Development RAP Resettlement Action Plan RED Road Economic Decision Model RISP Regional Integration Strategy Paper ROW Right of Way SIDA Swedish International Development Agency TSF Transition Support Facility UA Unit of Account USD United States Dollars VOC Vehicle Operating Costs WB World Bank

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Programme Information Sheet Client Information BORROWERS/RECIPIENTS: Liberia; Côte d’Ivoire

PROGRAMME TITLE: Mano River Union - Road Development and Transport Facilitation Programme – Phase II

PROJECT AREA: Liberia: Fish Town - Kelipo (River Gee County); and Sanniquellie Loquatuo (Nimba County) Côte d’Ivoire/Liberia/ Boarder: Gbeunta

EXECUTING AGENCY: Liberia: Ministry of Public Works (MPW) Côte d’Ivoire: Ministry of Economic Infrastructures, through the Agency for Road Management (AGEROUTE) as well as the ECOWAS Commission, the MRU Secretariat and the Joint Technical Committee (JTC).

Financing Plan Source Amount (UA) Instrument ADF (PBA) 4, 400, 000 Loan ADF (PBA) 2, 800, 000 Grant ADF: Regional Envelope (2017) 9, 000, 000 Loan TSF (PBA) 9, 150, 000 Loan TSF (PBA) 3, 930, 000 Grant EU (EUR 20,200,000.00) 16, 974,790 Grant EIB (EUR 17,000,000.00) 14, 290 000 Loan GoL 1, 340, 000 Counterpart Funds

TOTAL COST 61, 884, 790

Key ADF Financial Information

Loan/Grant currency Unit of Account (UA) Interest* type Not Applicable Interest rate margin* Not Applicable Commitment fee on the ADF loan* 0.5% per year of the undisbursed loan amount 120 days following signature of the Loan Agreement Service charge on the ADF loan 0.75% per year of the disbursed but unreimbursed amount Other charges* Not applicable Maturity 40 years Grace period 10 years

Timeframe – Main Milestones (expected) Concept Note approval July 2017 Programme approval September 2018 Effectiveness January 2019 Completion Date December 2022 Closing Date June 2023

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EXECUTIVE SUMMARY

I. General Programme Overview

1. The Road Development and Transport Facilitation Programme – Phase 2, is a regional programme between Liberia and Côte d’Ivoire to develop and pave a total of 67.1 km of road linking the South-eastern Liberia and western part of Cote D’Ivoire. The road sections concerned are: (i) Development of 20 km road from Fish Town to Kelipo (River Gee County in Liberia) and (ii) Development of 47.1 km from Sanniquellie to Loguatuo of Liberia, up to the Border town of Gbeunta in Cote D’Ivoire. These road sections are still dirt roads, barely 6 metres wide and impassable for most of the year. The bridges spanning the numerous rivers in the area are built of makeshift timber and they have numerous road checkpoints and ill-adapted border posts that render journeys long and fastidious. The South Eastern part of Liberia in particular is one of the least developed and has high poverty levels estimated at 54%. The lack of road infrastructure is one binding constraint to economic development and activities of the areas, including the movement of goods and services. To ensure that these roads handle current and future traffic flows, there is a need to improve their level of service, increase their capacity to receive traffic throughout the year and reduce the number of police checkpoints. This calls for the development and paving of the roads, construction of 36.55-meter span bridge on the Nuon River connecting Liberia and Côte d’Ivoire at the Loguatuo/Gbeunta Border and the construction of joint border control posts.

2. Over the past 24 years, successive crises within the MRU have aggravated the poverty rate, which is 21% higher than in other regions of the continent. The programme area has the economic potential to create about 800 formal and informal jobs, especially in agriculture, and abounds with natural resources (minerals, coffee, cocoa, gold, diamond, iron, etc.). Unfortunately, it has become the epicentre of various hotbeds of tension due to its economic isolation, inequalities and the marginalisation of social groups like women and the youth, and the lack of trade.

3. The programme will benefit road users, transporters, farmers, the programme area population of about 790, 000 inhabitants and especially disadvantaged groups such as women and children who constitute the majority. It will be executed from January 2019 to December 2022 for an estimated total cost of UA 61.88 million, comprising ADF contribution to the Programme amounting to UA 29.28 million which accounts for (48%) of the total cost of the project. UA 20.28 million (33%) will come from a combination of ADF 14, TSF Loans and grants and the amount of UA 9.00 million (15%) will come from the Regional Envelope (RE). The European Commission through it regional window (Africa Investment Platform) has approved in grant total amount of EUR 20.20 million, equivalent to UA 16.97 million and the European Investment Bank (EIB) will also finance part of the Programme in a Loan of EUR 17 million, equivalent to UA 14.29 million.

Needs Assessment

4. The programme features in the poverty reduction strategy frameworks of the two countries, in the PIDA action plan and in the MRU priority transport programme. It is the second operation under the Strategic Framework of the Bank's Initiative for the MRU and its "transport" and "trade facilitation" components cost, estimated at USD 2.53 billion, is short by USD 1.79 billion, or 71%. In view of the above, the Bank dispatched a preparation mission in December 2016, which reached an agreement with the countries on the configuration and scope of the programme. In a joint regional prioritization letter (Annex C3) signed by the two iv

countries for the upgrading of Sanniquellie-Loguatuo (Liberia 47.1km) and Danane – Gbeunta (Côte d’Ivoire, 27 km), it was indicated that Côte d’Ivoire will finance its section in the ADF14 allocation because of the limited allocation in the ADF13 funding cycle then; hence leaving the two countries regional collaboration only on the bridge and joint border post. In January/February 2018, the programme was appraised in Liberia with consultation with authorities in Côte d’Ivoire.

5. The poor state of roads, the isolation of poor regions and insecurity in the programme area promote cross-border mercenary activities; fuel all forms of trafficking; hinder economic growth; discourage public and private investments; and limit access to job opportunities. The volume of trade has dwindled considerably, due to the fastidious checkpoints and border control posts. The improvement of these roads will boost regional integration, promote peace and reconciliation, attract investors, increase trade between the countries, and protect the environment by marginally cutting greenhouse gas emissions during construction and in the long term at cumulative 21% reduction of CO2 emissions. Cut transport costs, reduce road accidents, transit time of goods, and open up access to markets, farming areas and social services.

Value-added for the Bank

6. Given the Bank’s experience and the skills gained from implementing regional infrastructure projects, the Bank was designated as the lead financier for EU-AIP, formal AfIF and EIB infrastructure financing. Furthermore, this programme is a continuation of Bank support to the transport sector in Liberia that includes the development and paving of the Fish Town-Harper Road, Phase I, approved in October 2013, and the first phase of the MRU Road Development and Transport Facilitation Programme approved in December 2014. The two projects are training young engineers and reforming institutions to better sector delivery systems. Lastly, the Bank took the initiative to set up a Special High Level Panel on Fragile States that prepared an action plan together with pertinent recommendations that point to integrating regional states. Consequently, the Bank is best suited to use this programme to achieve MRU goals and overcome fragility.

Knowledge Management

7. Lessons and knowledge from the programme will be generated through: (i) a joint border post operational procedure studies. Additionally, a study on mobility and inland waterway will be carried out (ii) monitoring/evaluation reports on programme impact to be prepared by a consultant; and (iii) the Observatory of Abnormal Practices (OPA) that monitors, detects and publishes any violations of community regulations along the international corridors. The lessons, experiences and knowledge gathered from implementing this programme will be managed from a database in the public works ministries of the two beneficiary countries and disseminated in annual reports and on the Bank’s web site.

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Results-based Logical Framework

Country and Programme Name: Multinational (Liberia and Côte d’Ivoire): Mano River Union – Road Development and Transport Facilitation Programme Purpose of the Project: To Provide efficient road transport access to South East and North West Counties of Liberia and Western part of Côte d’Ivoire

PERFORMANCE INDICATORS RESULTS CHAIN MEANS OF VERIFICATION RISKS/MITIGATION MEASURES Indicator Baseline Target 2022[impact] (including CSI) Impact Contribute to Economic Growth GDP per capita growth In 2017: Liberia In 2022: Liberia 5.5%, CI. Nationals Statistics from Risk: (i) Implementation of Development Agendas is and poverty reduction in the (%) 2.5%, CI: 7.8% 7.9% both Countries: not successful in both Countries; MRU Region (CI and Liberia) Population below the poverty line (%) (in the In 2017: Liberia In 2022: Liberia 40% and Mitigation: (i) The two Countries (CI and Liberia) Programme Area) 54%, CI, 46% CI. 32% and Development Partners commitment will be geared towards the implementation of the Agendas. Contribute to increase in Trade Volumes (USD) In 2017: Côte In 2017: Côte d'Ivoire- Source: Ministries of Regional Trade Annual volume of Côte d'Ivoire-Liberia: Liberia: Trade, Institutes of

IMPACT between Liberia and Côte d’Ivoire /Liberia trade 445.12 million 560.06 million tonnes of Statistics, Customs. d’Ivoire (imports and exports) for tonnes of goods goods  Ministry of Finance and all modes of transport Development Planning (MFDP)  Liberia Institute of Statistics & Geo- Information Services (LISGIS)

Outcome 1 Vehicle operation In 2017: In 2022: US$0.39/ veh-  Ministry of Public Risks Reduced transport cost Vehicle cost(VOC) reduced US$0.52/veh-km km (25% reduction) Works (i) unwillingness to apply community regulation on Operating Costs (Cost/veh-km) (MPW)/AGEROUTE the free movement of persons and goods as swell as

 Monitoring & road transit Evaluation Report/MPW/AGEROU Mitigation Measures TE Awareness raising for local communities, equipment OUTCOMES of checkpoints and bus stations with health control posts and implementation of the response plan.

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Outcome 2: Average Travel Time In 2017: 3 hours I hour and 30 minutes By inspection/ Driver Risks Reduced average travel time (Hours) reduced 30 minutes (40% reduction) [2022] Interviews Unpredictable spike in the cost of works between Fish Town and Kelipo; (Sanniquellie – and ( MPW) and Sanniquellie and Loguatuo Loquatuo) Mitigation Measures 1 hour (50% reduction) Physical and financial contingencies, advance In 2017: 2 Hours, [2022] respectively contracting. (Fish Town – Kelipo) Outcome 3: Nos. people formally and In 2017 In 2017: Sources: Quarterly reports Risks Improve living conditions of informally employed -Sanniquellie - - Sanniquellie – from Executing Agencies Fiduciary risks Project Affected during construction on Loguatuo Loguatuo road/border = including forms for Persons/communities skilled and unskilled jobs road/border: 0 550 people employed collecting date on jobs Mitigation Measures (30% female) created Project accounting audits, mix security parols -Fish Town – -Fish Town – Kelipo organized by the two countries. Reconciliation Kelipo road: 0 road = 250 measures will help to mitigate this risk.

% women-led enterprises In 2017: 0 At least 20% Statistics on household accessing public income

procurement contracts

Nos. women and youth In 2017: 0 100% entrepreneurs owned contractors trained (60% women) on technical know-how and financial management - 100 traders and shop Nos. people trained in In 2017: 0 owners trained in book-keeping and simple booking and accounting accounting of which 60% women by 2022 Outcome 4: Amount of time taken by a In 2017: In 2022: Sources: Reports on Risk Obstacles to the free movement good truck to cross the Sanniquellie – Sanniquellie – Loguatuo monitoring/evaluation of i. Late mobilization of counterpart funds of persons and goods in the two border Loguatuo 12 4 hours regional road performance ii. Lack of willingness to apply regional regulations in countries are eliminated hours road transit.

Number of checkpoints for In 2017: In 2012: Reports from the OPA Mitigation Measures

every 10km -Sanniquellie – -Sanniquellie – Loguatuo i. Opening of a counterpart fund account and Loguatuo = 4 = 2 providing it with an amount that can cover 6 months -Fish Town – -Fish Town –Kelipo = 1 of operation. Kelipo = 3 ii. the monitoring of performance indicators by the Technical Committee comparison of members from the two countries and that of ECOWAS monitoring

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Component 1 – Road Length (km) of road paved In 2017: 0 In 2022: By inspection/ Substantial Risks: Works/Infrastructure 67.1 km (Fish Town - completion of works (i) Increase in construction costs; Investment & ESMP: Kelipo and 47.1 km (ii) Procurement bottlenects/delays whose impact is -20 km (Fish Town - Kelipo and (Sanniquellie - the late commencement of works -47.1 km (Sanniquellie - Loquatuo) paved (iii) Limited institutional capacity of the Programme’s Loquatuo) road paved Executing Agencies -Construction of the bridge at the Border bridge build and In 2017: 0 In 2022: Pre-stressed (iv) Delay in payment of compensation and land border commissioned bridge constructed and acquisition of border post construction commissioned -Environmental and Social Percentage of reduction in Mitigation Measures: Management Plan CO2 emission In 2017: 0 In 2022: 21% reduction (i) Estimate based on current unit prices on the market of CO2 emission taking into account future inflation; Component 2 – Social Nos. of roadside markets, In 2017: 0 In 2022: 2 roadside -Project Quarterly (ii) Use of advance contracting procedure and training Infrastructure measures and separated toilets and markets at Sanniquellie Progress Reports on relevant Bank policies during launching of the Institutional Support boreholes (water facilities) and Loquatuo, 3 programme (1) Construction of road side constructed in safe and separated toilets and 5 (iii) Technical Assistance and Capacity Building for

markets, separated toilets and secure spaces boreholes the Executing Agencies. boreholes in safe and secure (iv) Borrower/recipient opening a Special Account to spaces In 2022: Construction -Project quarterly progress deposit counterpart funds and provide title land for OUTPUTS Nos. of awareness, people workers, 15 community reports and Annual ESMP construction of OSBP (2)Communities/Workers sensitized and educational In 2017: 0 towns and villages Compliance Monitoring Sensitized on: HIV/AIDS, campaigns executed. sensitized about Report Malaria, Gender Empowerment, HIV/AIDS, malaria, Sexual and Reproductive Health SRPH, road safety, Rights (SRHR) and Road Safety. gender mainstreaming by 2022. (3) Institutional Support (i) Study on Urban Mobility (i) Progress on completion Study completed and Improvement Measures in the of study on Urban In 2017: 0 available city of Monrovia, and (ii) Mobility Improvement Project quarterly and Professional course/training for In 2022: 10 engineers annual progress reports sector (ii) Nos. of MPW/PIU In 2017:0 trained in various engineers and programme engineers trained engineering disciplines. Implementation unit At least 30% of women engineers trained.

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Component 3: Trade # of reports on border In 2017: 0 In 2022: Sources: Ministry of Facilitation: procedure, processes and Public Works, (i) Study to examine border the role of cross border (i) Reports on border AGEROUTE, MRU, procedure, processes and the role women by 2022 procedure and processes ECOWAS of women in cross-border trade and transport (ii) Border post constructed and (ii) construction of Joint Border One stop border post In 2017: 0 commissioned at post and ancillary activities constructed be 2022 Loguatuo (Liberia)/Gbeunta (Cote d’lovire) Component 4 – Project Nos., Quality and In 2018: None In 2019: Ministries in charge of Management (PM) and Timeliness of the Reports Reports completed and road works in the 2 Technical Support: Ensure that at least 30% of validated countries (i) PM Consultancies: women take part in project -Financial Audit firm Management in particular -Technical and Road Safety firm M&E -M&E firm In 2022: equipment and -Procurement TA logistics procured and in

-Envirnomental, Gender and use social safeguard TA

(ii) Programme Executing Agency Equipment installed and In 2018: 0 -Logistical support and top up to logistic facilities improve their working commissioned and used conditions INPUTS COMPONENTS Component 1: Road development and mitigation of negative environmental impacts Budget (UA Million) Financing Plan (UA Million)

Component 2: Social Infrastructure measures and Institutional Support Component 1 49.73 ADF Loan 4.40 (7.00%) Ccomponent 3: Transport Facilitation Component 2 1.15 ADF Grant 2.80 (5.00%) Component 4: Programme Management Component 3 3.30 ADF Loan (Regional Envelope) 9.00 (15.00%) Component 4 2.48 TSF Loan 9.15 (15.00%) Contingencies 5.22 TSF Grant 3.93 (6.00%) KEY KEY ACTIVITIES EU Grant 16.97 (27.00%) TOTAL 61.88 EIB Loan 14.29 (23.00%) GOL 1.34 (2.00%) TOTAL 61.88 (100%)

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Programme Implementation Schedule

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REPORT AND RECOMMENDATION OF MANAGEMENT TO THE BOARDS OF DIRECTORS CONCERNING A PROPOSAL TO GRANT LOANS AND GRANT TO LIBERIA FOR THE ROAD DEVELOPMENT AND TRANSPORT FACILITATION PROGRAMME WITHIN THE MRU Management hereby submits this report and recommendation concerning a proposal for a two ADF Loans of UA 4,400,000 and UA 9,000,000; one TSF Loan of UA 9,150,000 and two ADF & TSF Grants of UA 2,800,000 and UA 3,930,000 to finance the Road Development and Transport Facilitation Programme of the Mano River Union (MRU). I. STRATEGIC THRUST AND JUSTIFICATION 1.1. Programme Linkages with National and Regional Strategies and Objectives

1.1.1 The proposed road programme under the Mano River Union Road (MRU) Development and Transport Facilitation Programme (MRU/RDTFP Phase II): Paving of Fish Town to Kelipo (20 km) and Sanniquellie to Loguatuo (47.1 km) is a continuation of Bank’s support to the regional integration of the Mano River Union Member States (Liberia, Cote D’lvoire, Sierra Leone and Guinea). To improve road transport connectivity as a strategy to address and minimize fragility, the Bank financed the ongoing first phase of the MRU Transport Programme covering three MRU countries (Côte d’Ivoire, Guinea and Liberia), in order to open up countries, and the MRU region, and bring to bear the innumerable economic potentials of these countries. This second phase of the Programme is a continuation of the first phase in order to provide the missing Regional and Intra-Regional Road Links in the two countries for regional integration and trade. The current disbursement ratio on the first phase of the Programme are 47% (Liberia) and 52% (Côte d’Ivoire) with completion date of December 2020.

1.1.2 The proposed Programme is consistent with: the poverty reduction strategies of the two countries, and especially Pillar 3 of Côte d’Ivoire's National Development Programme (PND) 2013-2018 which focuses on "the development of infrastructure and transport services to become an emerging economy. The Pro-Poor Agenda for Prosperity and Development 2018 to 2023 (PAPD) is the second in the series of National Development Plans (NDP) anticipated under the Liberia Vision 2030 framework. It follows the Agenda for Transformation 2012- 2017 (AfT) which focused on Infrastructure Development and Basic Services. Pillar 2 of the Bank’s Country Strategy Paper (CSP) (2013-2017) for Liberia extended to December 2018; and CSP (2013-2017) and National Development Plan (NDP) (2016-2020) for Côte d’Ivoire are very much in line with the development objectives of the two countries.

1.1.3 The Programme is consistent with the Bank's 2013-2022 Ten-Year Strategy (which gives priority to infrastructure), as refined in the High 5s and will support 4 of the 5 High 5s which include Feed Africa, Industrialize Africa, Integrate Africa and Improve the Quality of Life of the People of Africa. The road sections are also included in the Bank's Regional Integration Strategy for West Africa, which is currently under consideration for extension. The road sections are included in ECOWAS Plan of Action for deepening regional integration and the MRU - Region Transport Priority Programme.

1.2. Rationale for Bank Involvement

1.2.1 The Mano River Union is a fragile region. Ethic, cultural and social ties in the West African region transcend national boundaries, thus promoting social cohesion. Paradoxically,

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the MRU area, comprising Côte d’Ivoire, Guinea, Sierra Leone and Liberia, is one of the hotbeds of fragility and social instability on the continent, just like the Great Lakes region and the Horn of Africa. Over the past twenty years, successive crises have undermined the socio- economic development of the three countries in the programme and rolled back public and private investments in sectors that have the potential to generate inclusive economic growth. This has aggravated the region's poverty, which is 21% higher than in other regions of Africa.

1.2.2 Analyses by the Bank on poverty under the fragility spectrum, concluded that the causes of fragility in Africa are due, inter alia, to (i) the economic isolation of countries and regions; (ii) inequalities and the exclusion of particular social groups such as women and youth; (iii) climate disturbance and resource control conflicts; (iv) rapid urbanization, which is an opportunity that could also lead to social conflict; and (v) failure to take regional approaches into account in solving problems. Intra-State trade has remained limited due to the absence of paved highways linking these three countries, insecurity, lack of safety and onerous border crossing procedures. The programme will tackle these challenges by linking Côte d’Ivoire to Guinea and Liberia with paved roads for the very first time, thus boosting trade, reducing poverty and social inequalities, and consolidating peace and security.

1.2.3 Apart from the abovementioned development issues, the Bank's intervention is justified by: (i) the alignment of Programme goals, aimed at promoting regional integration, on those of NEPAD and on the Bank's Long-Term Strategy 2013-2022, which focuses on infrastructure, regional integration, governance and the private sector. Moreover, roads to be developed under the Programme are included in West Africa's Regional Integration Strategy and in the strategic framework of the Bank's special initiative for MRU countries ("connect Mano River countries, build peace and accelerate development"), which is going through the approval process; (ii) the experience and skills accumulated by the Bank in the design, financing and implementation of regional transport facilitation projects in partnership with regional economic communities (RECs) including ECOWAS; (iii) the primacy of the current Programme among the operations scheduled for Bank financing under the above Initiative; (iv) the need to back up the reconstruction and reconciliation efforts initiated by the MRU with a regional initiative that seeks to sustainably tackle the regional causes of fragility; and lastly (v) the value-added of the Programme to the consolidation of cross-border peace and security, the development of economic opportunities and the connection of isolated regions to national economies.

1.3. Donors Coordination

1.3.1 Development Partners (DPs) activities in the sector in the two countries include support to road sector institutions and Road Rehabilitation and Upgrading Programmes/Projects. The DPs include: AfDB, EU, JICA, MCC, the World Bank (WB), KUWAIT Fund, IDB, China, SIDA, USAID and GIZ. The EU and the European Investment Bank (EIB) have pledged to co- finance the Programme with the Bank. The World Bank is already committed on some missing section of the Trans-African Highway Corridor in Liberia between Ganta and Zwedru. In both Cote D’Ivoire and Liberia, coordination mechanisms exist for the Transport Sector Development Partners. Meetings are carried out regularly (monthly) to harmonise development interventions, monitor progress of the Projects and Programmes and for policy dialogue with the Borrowers/recipients on key issues affecting the sector performance such as Transport Sector Reforms and Institutional Capacity Building.

1.3.2 The "transport" thematic group in Liberia comprises the Bank, EU, World Bank (WB), JICA, Millennium Challenge Corporation (MCC), SIDA etc. As the executing agency, the

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Ministry of Public Works chairs the monthly coordination meetings of road sector donors. Although these meetings facilitate the sharing of relevant information on ongoing actions, they do not effectively serve as a platform that guides the strategic decision-making of various partners.

Table 1.1: Donor Coordination

Players – Public Annual Expenditure (Average) 2017/2018*

Government Donors WORLD BANK 51% AfDB 25% UA 6.2 million UA 81.25 million EU 8% 7.6% 92.4% KfW 5% MCAL 4% SIDA 2%

GIZ 1% JICA 2% Others 2%

Level of Donor Coordination

Existence of Thematic working Group YES Existence of SWAPs or Integrated Sector approaches NO

AfDB’s involvement in donor group YES * Figures obtained from Aid Management Unit and the Public Investment Unit/ Liberia Ministry of Finance

1.3.3 During the programme appraisal mission fielded in Liberia, the Bank informed the DPs of the programme activities and ensured that there would be the necessary synergies, complementarity and adherence of the other DPs to this operation. Furthermore, consultations were held on measures pertaining to axle load limits as well as the facilitation and promotion of actions within the sector that can generate inclusive growth and gender equality.

II. PROGRAMME DESCRIPTION 2.1. Programme Objectives and Components

2.1.1 Programme Objective: The Programme Objective is to provide efficient road transport access to South East and North West Counties of Liberia and Western part of Côte d’Ivoire. These objectives will be achieved through the implementation of the below components.

2.1.2 Programme Components: The Programme has four (4) components as shown in table 2.1 below. Table 2.1: Programme Components

Components Description of Components Indicati Financier ve cost by (M Compone UAC) nt Road Road works and ESMP: AfDB, EU, 49.73 development EIB and mitigation  Construction of a total 67.1 km section of road as follows: of negative i. Sanniquellie – Loquatuo: A total of 47.1 km gravel road will be environmental paved to asphaltic concrete impacts ii. Construction of the bridge at Loguatuo/Gbeunta Border iii. Fish Town – Kelipo: A total of 20 km gravel road will be paved to asphaltic concrete  Implementation of Environmental & Social Management Plan (ESMP);  Implementation of RAPs; and

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 Civil Works control and Supervision for road and design and supervision for border post Social Social Infrastructure Measures: 1.15 AfDB, EU Infrastructure  Construction of 2 road side markets, 3 separated toilets and 3 boreholes measures and along the Sanniquellie Loguatuo road section; Institutional  Communities/Workers Sensitized on: HIV/AIDS, Malaria, Gender support Empowerment, Sexual and Reproductive Health Rights (SRHR) and Road Safety.  Study on Urban Mobility Improvement Measures in the city of Monrovia  Professional course/training for sector engineers and programme Implementation unit. Transport and Trade Facilitation: 3.30 AfDB Transport and  Study: Examination of Border Procedures and Processes along the Trade corridor including awareness-raising of road users and border control facilitation officers on inter-State road transport facilitation measures.  Construction and equipment of 1 One-Stop Joint Border Post, including weighing/toll stations and health control posts, between Côte d’Ivoire and Liberia at Loguatuo/Gbeunta Border Post Programme Management and Consultancies: 2.48 AfDB, EU  Socio-economic impact monitoring and evaluation (M&E) of the Programme Programme; management  Financial and accounting audit of the programme;  Technical and Road Safety Audit of the Programme  Support an Accountant at the Project Financial Management Unit at the Ministry of Finance and Development Planning  Support with Project Procurement officer  Develop visibility and communication plan  Support with Environmental, Social and Gender safeguards  Support to regional coordination of the Transport Facilitation Component  Material and logistical support to the Programme executing agency (EA

2.2. Technical Solutions Adopted and Alternatives Considered 2.2.1 The technical solution adopted for roads to be built under the programme is development and paving with bituminous concrete in line with ECOWAS geometric guidelines and the American Association of State Highway Official (AASHO). To remain consistent with the design of adjacent sections for MRU/RDTFP Phase 1, the same design parameters, i.e. 50mm Asphalt wearing course, 50mm Asphalt binder course, 200mm base of crushed rock and 200mm sub-base of gravel has been adopted. Three (3) design options with respect to the road geometry were considered and subjected to economic and Technical analysis to determine the most feasible. These included: (i) pavement width of 3.65m with shoulders of 2.0m to meet minimum ECOWAS requirements; (ii) Concrete pavement width of 3.65 and 2.0m shoulders (iii) pavement width of 3.65m and 2m to meet design standards of the MRU RDTFP Phase I and that of the FTHRP Phase I. 2.2.2 All three (3) options were economically feasible with the only difference between options 2 and 3 being concrete pavement, which was rejected by GoL. The Government of Liberia has made a preference for option three to ensure that it remains compliant to ECOWAS guidelines as well as the geometric standards of adjacent sections including the Fish Town Karloken being financed by the Bank. Option III will include construction of road with an asphaltic concrete of depth 50mm Asphalt wearing course, 50mm Asphalt binder course, 200mm base of crushed rock and 200mm sub-base as indicated in the table below.

2.2.3 The designs for the North Eastern road section, Sanniquellie to Loquatuo (47.1km) was finalized in October 2017. The upgrading from laterite to inverse pavement structure of low- module (Asphalt Concrete Wearing Course 5cm, crushed stone base course of 15cm and

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cement stabilized subbase course of 20cm). The inverse structure will be two lanes of 3.75m plus two paved shoulders of 1.50m, provides a better response to the environmental agents because the cement stabilized subbase moisture susceptibility is very low. The better response to the environmental agents shall occasion lower maintenance costs in the mid-term and in the long-term as well. This design was the preferred option selected by the two countries. The alternative solutions considered and reasons for rejection is summarized in table 2.2.

2.2.4 The structure of the roads is described in the table below: Fish Town – Kelipo (20 km) Sanniquellie Loquatuo (47.1 km) and bridge Bituminous Asphalt Concrete (AC) layer, Bituminous Asphalt Concrete (AC) layer, 50mm Surface course 50mm thick thick Binder Course Asphalt binder course 50mm thick No binder Base course Crushed stone base, 200mm thick Crushed stone-gravel aggregate, 200mm thick Natural gravel, 200mm thick Lateritic gravel stabilized with 4% of cement Sub-base course Sub-grade Natural ground Natural ground course

2.2.5 The bridge at the Loguatuo/Gbeunta border (Nuon river) is a 12 panel 36.55m through truss baily bridge, 4 panel in width and 1 panel in height. The new bridge to be constructed is a pre-cast, pre-stressed girder bridge 2x20m span. Table 2.2: Alternative Solutions Considered and Reasons for Rejection Alternative Solution Brief Description Reason for Rejection Roads Option 1: Development of a dual - Double-layer surface course, base course Stabilisation is incompatible with lane 2x3.5 road surface on the Fish in crushed granite (200mm), and sub-base the level of rainfall observed in Town – Kelipo road: course in natural lateritic gravel (200mm). the programme area. Fish Town - 50mm+200mm+200mm+150mm Kelipo Option 2: Development of a dual - Surface course in rigid concrete: 50mm- Difficult implementation, high lane 2x3.65 rigid road surface on the - Sub-base course: 150mm of lateritic Cost of construction, twice the Fish Town Kelipo road segment: amount for a flexible payment 50mm+150mm Inverse low modulus surface with - Wearing Course (Asphalt concrete) 50 Low capacity to sustain future dual lane 2x3.5 metre road surface, mm – Base (Crushed Stone) 150 traffic. Rainfall data cannot -BWC 5cm mm – Subbase (Cement Stabilized Natural support structure Sanniquellie -CG 15cm Gravel) 200 mm Loguatuo -NGC 20cm

6 concrete beams casted in situ, topped by Difficult implementation concrete slab. High cost Nuon bridge Option 1: Girder bridge in pre- A 1.5m wide foot walk and 1.5m-wide Loguatuo/Gb stressed reinforced concrete shoulder The carriageway of eunta border equal to 7.5m, for a total width of 13.5m

2.3. Programme Type

2.3.1 This is an autonomous regional investment operation. The resources requested from the ADF will be used to finance known social and economic infrastructure. Moreover, the investments for which funds will be disbursed will be specific and clearly defined. Hence, the specific loan is the best instrument for the Bank's intervention in this programme.

2.4. Programme Cost and Financing arrangements 2.4.1 The detailed design reports for the two road sections provided guidance on the indicated cost of the principal programme components. Other costs are based on estimates provided by GoL and agreed with the Bank. The estimated total programme cost, net of taxes

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and customs duties is UA 61.88 million of which UA 16.62 million (US$23.68 million) is for Lot 1: Paving Fish Town –Kelipo Section and UA 45.26 equivalent to EUR 53.85 and US 64.26 million (at the current rate of exchange) is for Lot 2: Paving Sanniquellie Loguatuo section. These costs are calculated based on final design studies and the unit prices of bids for works and similar services in 2016. It includes a physical contingency provision of 5.6% of the cost of attendant works and services and a price escalation provision of 3.5% of the base cost. The summary of costs by component, category and road section by lots is presented in Tables 2.3 and 2.4 below. The summary of costs by category and the disbursement schedule by source are presented in Annex III. The detailed cost by component, expenditure category and expenditure schedule are presented in Annex B2. Table 2.3: Cost Estimates by Component [in EUR/UA million] EUR Million UA Million COMPONENTS F.E. L.C. Total F.E. L.C. Total Road development, Bridge and mitigation of negative 1. 47.34 11.84 59.18 39.78 9.95 49.73 environmental impacts Social Infrastructure, Related Measures and Institutional 2. 1.10 0.27 1.37 0.92 0.23 1.15 Support 3. Transport & Trade Facilitation 3.14 0.79 3.93 2.64 0.66 3.30 4. Programme Management 2.36 0.59 2.95 1.98 0.50 2.48 Base Cost 53.94 13.49 67.43 45.32 11.34 56.66 Physical contingencies 3.07 0.77 3.83 2.58 0.64 3.22 Price escalation 1.90 0.48 2.38 1.60 0.40 2.00

Total cost 58.91 14.74 73.64 49.50 12.38 61.88

Table 2.4: Cost Estimates by Component a n d Road Section [in EUR/UA million] Lot 1: Fish Town – Kelipo Lot 2: Sanniquellie Loguatuo (20 km) (47.1km) COMPONENTS EUR Million UA million EUR million UA million

1. Road development and mitigation of negative 16.16 13.58 43.02 36.15 environmental impacts

2. Social Infrastructure and Related Measures 0.18 0.15 1.19 1.00

3. Transport & Trade Facilitation 0 0.00 3.93 3.30 4. Programme management 1.52 1.28 1.43 1.20 Base Cost 17.86 15.01 49.57 41.65 Physical contingencies 0.96 0.81 2.38 1.99 Price escalation 0.95 0.80 1.90 1.60 Total costs 19.77 16.62 53.85 45.26 2.4.2 The programme will be jointly financed by the Bank, the Government of Liberia, European Union (EU) and the European Investment Bank (EIB). The total indicative AfDB’s ADF contribution to the Programme amounts to UA 29.28 million equivalent to USD41.58 which accounts for (48%) of the total cost of the project. UA 20.28 million (33%) will come from a combination of ADF 14, TSF Loan and grant and the amount of UA 9.00 million (15%) will come from the Regional Envelope (RE). The European Commission has approved in grant total amount of EUR 20.20 million, equivalent to UA 16.97 million. The European Investment Bank (EIB) will also finance part of the project in Loan of EUR 17 million, equivalent to UA 14.29 million to the GoL. The financing plan is presented in Table 2.5 below.

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Table 2.5: Sources of Financing [in EUR/UA million]

Financier Instrument EUR UA % ADF Loan 5.24 4.40 7% ADF Grant 3.33 2.80 5% ADF ADF-XIV Regional Env. Loan 10.71 9.00 15% TSF Loan 10.89 9.15 15% TSF Grant 4.68 3.93 6% European Union(EU) PAGoDA Grant 20.20 16.97 27% European Investment Bank 17.00 14.29 (EIB) EIB Loan 23% GoL Counterpart contribution 1.59 1.34 2% Total 73.64 61.88 100

2.5. Programme target area and population 2.5.1 Location, The Programme roads (see map in Appendix VI), namely Fish Town-Kelipo (20 km), and Sanniquellie - Loguatuo (47.1 km), link the South-eastern and North eastern parts of Liberia with the north-western part of Côte d’Ivoire. In Liberia, the Fish Town – Kelipo (20 km) road segment is situated in River Gee County. The population of River Gee County is estimated at 66,789 and the road runs through Kaweaken District with a total population of 23,228 inhabitants (51.35% male and 48.65% female). This section of road runs through 18 communities and branches out to Zwedru, Grand Gedeh County, with a population of approximately 400,000 inhabitants. The Sanniquellie – Loguatuo (47.1 km) is located west of Côte d’Ivoire where a One-Stop Border Post will be constructed at Loguatuo/Gbeunta Border under the Programme, which will facilitate regional trade in the MRU Region. 2.5.2 Beneficiaries. Overall, the programme will benefit almost 790,694 inhabitants (of which 49.5% on average are women) within the communes along the project roads. Other beneficiaries are the socio-professional groups present in the programme area (anglers, farmers, women associations, and suppliers, entrepreneurs, engineering consultancy firms, transporters and miners). The indirect beneficiaries are the people of the two programme countries and of the neighbouring countries, especially Guinea and, by extension, West African countries. 2.6. Participatory Approach to Programme Identification, Design and Implementation 2.6.1 The participatory approach was adopted during programme preparation, technical studies, environmental and social assessments, and programme preparation missions. The adherence and participation of local authorities and local communities in the programme was secured through preliminary information sessions and consultations organized in Sanniquellie, Seykempa, Loguatuo and Fish Town during the preparation and appraisal missions in December 2016 and February 2018 respectively. The consultations focused on arrangements to inform and ensure the participation of representatives of the various social groups in the programme area, transport sector stakeholders (drivers, transporter associations and officials of the porous border post at Loguatuo), non-governmental organisations, women’s groups and local representatives of the technical services of ministries involved (Public Works, Transport, and Environmental Protection Agency). The communities were very supportive of the proposed programme and pledge to fully participate in such development coming in their community.

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2.7. Bank Group Experience and Lessons Reflected in Programme Design

2.7.1 The factors of fragility to be reflected in the programme design are: (i) the low competitiveness of the construction sector due to the perceived high risk of doing business in the area (ii) the limited implementation capacity of project executing agencies due to weak private and public sector services, the brain drain, and more recently, the change of government in Liberia; (iii) the relatively high cost per kilometre of roads (over 50%) compared to costs in other regions of the continent, due to the high cost of insurance premiums and difficulties in obtaining supplies of materials and bad road accessibility to project sites; (iv) high demand for social infrastructure (schools, health centres, maternity wards, etc.) due to the pillaging and plunder that followed the war; and (v) poor political and financial governance due to disruptions resulting from the war. In addition to lessons specific to fragile countries, the lessons learnt from implementing regional operations completed in West Africa relate to the need to have quality studies, anticipate procurement procedures, assess ownership, concomitantly apply community regulations in all member States and ensure the mobilisation of the national counterpart funds by States.

2.7.2 The Programme design has also taken into consideration lessons learned from completed and ongoing (Phase 1 of the MRU Programme and Fish Town Harper road Project) Bank and other Development Partners’ operations. The implementation of ongoing operations has been characterized by long delays in fulfilling effectiveness, disbursement and procurement conditions, and insufficient counterpart contributions and implementation capacities. Fragility arising out of the prolonged civil war weakened the institutional capacities in both countries. These lessons have been taken into consideration as follows: Procurement delays will be addressed through the use of Advance Contracting to avoid delays in Programme commencement.

2.8. Programme Performance Indicators

2.8.1 The key expected outcomes are: 67.1 km of road paved including a border bridges and 2 juxtaposed checkpoints (PCJ) or as maybe applicable. An off loading and storage facilities, 2 markets, 3 toilets and 3 boreholes/water facilities will also be constructed. Lastly, it is expected that community measures will be applied to facilitate transport and trade along the corridors. 2.8.2 The main results indicators of this programme are: (i) travel duration; (ii) number of checkpoints within 10 km; (iii) vehicle operation costs (VOC); (iv) LV traffic at the border; (v) volume of trade between the countries; (vi) duration of customs procedures at the Côte d’Ivoire/Liberia borders; and (vii) number of jobs created during the works.

III. PROGRAMME FEASIBILITY 3.1. Economic and Financial Performance 3.1.1 The methodology for the economic analysis is based on cost-benefit analysis by comparing the “with” and “without “ project scenarios for each of the two Project Road Section over a period of 20 years, using the Highway Development and Management Model (HDM-4). The analysis adopted a discount rate of 12%, a residual value of 30% and construction period of three (3) years starting in January 2019. The economic costs consist of: (i) the capital investment costs and (ii) the routine and periodic maintenance expenses. The benefits consist of savings in: (i) vehicle operating costs; (ii) motorized traffic travel time for passenger and cargo; (iii) maintenance costs; and (iv) exogenous benefits including boosting agriculture

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production and employment during construction period. The details of the traffic and economic analysis results for each road (Sanniquellie – Loguatuo and Fish Town – Kelipo) are presented in Annex B7. The summary of the economic analysis is shown in Table 3.1.

Table 3.1: Economic Analysis Result Scenario Fish Town – Kelipo Section Sanniquellie- Loguatuo section AC Option NPV EIRR NPV EIRR (US $ Million (%) (US $ Million (%)

Base Results 6.14 13.8 12.537 16.90

3.2. Environmental and Social Impact Environment and Social Aspects 3.2.1 The project is expected to have adverse environmental and social (E&S) impacts some of which may be irreversible; therefore, it has been classified as a Category 1 in accordance with the Bank’s ISS requirement standards. The project has a road length of more than 50km; it is 67.1 km long (20 km Fish Town to Kelipo road section and the 47.1 km Sanniquellie – Loguatuo road section) and it will have involuntary resettlement and loss of cultural sites impacts. A full Environmental and Social Impact Assessments (ESIA) with a detailed Environmental and Social Management Plan (ESMP) and a full Resettlement Action Plan (RAP) have been developed and for the 20 km Fish Town to Kelipo road section they were finalised in November 2017 and the 47.1 km Sanniquellie – Loguatuo Road Section finalised in April 2018. The ESIA/ESMP and RAP reports were cleared and have been disclosed on the Bank’s website for the two road sections since November 2017 and May 2018 respectively.

3.2.2 The main environmental and social adverse impacts during construction and operation include: impacts on flora and fauna due to clearance of vegetation, vibration and noise; land and soil degradation and pollution due to excavation and construction activities; air quality impacts due to dust and emissions; impacts on surface and ground water resources due to soil erosion, siltation and pollution; noise impacts from vehicles and construction equipment; involuntary resettlement leading to physical and economic displacement; impacts on sacred cultural sites; graveyards and religious places; public and community health and safety impacts; Occupational Health and Safety and labour conditions; waste generation impacts; and social cultural impacts resulting from influx of migrant workers.

3.2.3 The anticipated positive impacts include: creation of employment opportunities both directly and indirectly during construction and operational phase; increased growth and development of the local and national economy; ease of road transport in River Gee and between Liberia and Côte d’Ivoire resulting in regional integration and facilitation of trade and movement; improved access to health and education services and other social services; increased road safety due to improvements in road alignments and road safety campaigns and awareness activities; empowerment of women to easily access markets and social services including sanitation facilities since the road section between Sanniquellie and Loguatuo will include construction of two road side markets and 3 latrines and 3 boreholes; increased frequency of private sector investment and other businesses due to ease of access; and stimulation of the development of other social amenities, and major development agenda.

3.2.4 Mitigation measures for the above mentioned adverse impacts covering both construction and operation phases include inter alia: (i) implementation of the full RAP; (ii) development and implementation of an Environmental and Social Management Plan (ESMP) by the Borrower/recipient in line with Bank’s OS requirements; (iii) preparation and

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implementation of a construction environmental and social management plan (CESMP) by the contractor. The CESMP will include specific management plans - Environment, Health and Safety (EHS), earth and cuts material, waste management, vegetation restoration, erosion and sedimentation control, emergency response, water quality management, human resources management, cultural heritage protection and chance finding procedures, in addition a stakeholder engagement plan that includes a grievance mechanism will be developed for the project. Submission and implementation of the RAP, ESMP, CESMP and its sub-management plans and subsequent monitoring and reporting requirements will be part of the loan conditions. The ESMP/CESMP implementation costs for the 20 km Fish Town to Kelipo road section will be included in the contract and the 47.1km Sanniquellie – Loguatuo Road Section is estimated at USD 1,259,510. The total costs for the RAP of the 20 km Fish Town to Kelipo Kanweaken is estimated at USD 900,000 and that of the 47.1km Sanniquellie – Loguatuo Road Section is estimated at USD 2,470, 141.76.

3.2.5 Climate Change: The project will contribute to climate change impacts through emissions as a result of vehicles and equipment during the construction and operation phases. In the long term, there will be a cumulative 21% reduction of CO2 emissions. In addition, it may aggravate flooding impacts if there is a lack of proper water drainage in the designs and due to lack of rehabilitation of the construction areas. However, the ESMPs that have been developed for the project will mitigate these impacts. In line with the Bank’s requirements, an appropriate team will be recruited to support the implementation, monitoring and reporting of the ESMP and RAP in the MPW PIU and CESMP for the Contractors. Grievance redress mechanisms have been developed for both projects indicating the procedures and composition of Grievance Local Committees as well as the monitoring and reporting arrangements.

3.2.6 Gender: Ivory Coast and Liberia are characterised by a high level in term of Gender Inequality Index; they are placed respectively in 171 and 177 places out of 188 countries, on the 2016 UNDP Human Development Report, therefore it has been classified as a Category 2 in accordance with the Bank’s policy on gender. Gender inequality in rural areas of the two countries stems from social and cultural norms that restrict women’s access to land and other economic resources.

3.2.7 In term of the gender distribution of the primary occupation, 39% and 32% of women are respectively traders and farmers. However, statistics do not include unpaid workers involved in business and farming, of whom the majority are women. As in the rest of the countries, Women in Informal Cross border Trade (WICBT) dominate both the trade in industrial (60%) as well as agricultural products (70¨ %) as opposed men. This category of women, face an array of daunting challenges when trading across the border including violence and harassment at the border supply-side obstacles and lack of entrepreneurial skills. A World Bank assessment in Liberia stressed that the most serious obstacles for women small-scale farmers are the lack of access to agricultural production inputs finance, capacity building and technology. In term of transport, women have to walk long distances in terms of conveying produce home. Sometime children are unable to make it to school due to infrequent transportation to location of schools, especially higher levels of education. In addition, women have to take sick wards to hospitals due to lack of frequent vehicular traffic.

3.2.8 Taking into account the gender differences between men and women in the project area and the specific constraints that women face in the region covered by the programme, the gender mainstreaming strategy in the project will focus on increasing access to programme activities for women, increasing their participation in programme implementation, community representation and decision making as well as ensure that all the plans (Safety plan, etc.)

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developed for the project to be mainstreamed for gender and inclusive. The project will seek to ensure economic empowerment and involvement in decision making to improve livelihoods for both gender and will contribute to achieving the following for women beneficiaries: (i) ensure access for women to decent employment and gender-responsive procurement; (ii) ensure equitable access to financial and technical resources allocation as well as extension and advisory services; (iii) facilitating women led business cooperatives/SMES and the development of their technical, leadership entrepreneurial skills; (v) Promote gender sensitive information education communication; (iv) ensuring women's involvement in the community- based and private sector management structures through community-level decision making (at least 30% of women) and gender-adapted training; (vi) construction of gender sensitive facilities such as special sanitation facilities to positively improve the welfare of women; (vii) Gender disaggregation data will be a regular process for all the activities of the project; (viii) deliberate efforts would be made to have a gender balanced in the PIU composition. Partnerships will be established with other ongoing projects in the region.

Although women will participate in and benefit from all programme activities, aggregate funds allocated to their main specific activities are about UA 760,000 (approximately 2.6% of the total budget provided by the Bank.

3.2.9 Involuntary Resettlement: The project will result in involuntary resettlement on both roads as follows: an estimated 677 PAPs, approximately 345 persons on the 20 km Fish Town to Kelipo road section; and an estimated 332 PAPs on the 47.1 km Sanniquellie – Loguatuo road section. The 20 km Fish Town to Kelipo road section will affect 241 structures and farms and tree crops, 2 hand pumps; seven graves; a church, clinic and a school. The 47.1km Sanniquellie – Loguatuo Road Section will affect 433 structures (173 residential & 260) commercial); 13 government buildings; 7 communal buildings; 8 water sources; 12 concrete graves; and 7 sacred places. A Full RAP has been prepared that includes differentiated measures based on gender and vulnerabilities and a Livelihoods Restoration Plan which will be implemented to mitigate this risk. The overall costs of implementing the RAPs for the two roads are estimated at USD 900,000 for the 20 km Fish Town to Kelipo and USD 2,470,141.76 for the 47.1km Sanniquellie – Loguatuo road section. The RAP Implementation Committee is located within the MPW and however, there is lack of capacity in the PIU to handle environmental and social safeguards for these two road projects. Therefore the project has included both an Environmental Officer and a Social Safeguards and Gender Officer as part of strengthening the PIU to implement the ESMP and RAP and CESMP by the Contractor. This will also ensure that the current challenges being experienced by the MPW/PIU on ensuring that compliance with monitoring and reporting requirements by the PIU and Contractors and that corrective and remedial actions are implemented for all identified E & S noncompliance issue. The supervision missions of the Bank will validate and crosscheck the ESMP implementation and the payment of compensation and implementation and monitoring of the RAP activities.

3.3. Fragility Assessment

3.3.1 Historical Context: Liberia is a nation of approximately 4.2 million people. Founded as a freed nation in Africa by Americo-Liberians (descendants of freed slaves from America) in 1822 and eventually gained independence in 1847. These descendants of the freed slaves generally remained in social and political control of the country until 1980. This Socio-political control translated into centralized power in Monrovia with very limited provision of basic social services and infrastructure development in the rural areas containing about 95 percent of the population mainly indigenous people. The unequal distribution of power and wealth resulting 11

from Liberia’s social structure is largely at the centre of conflicts that lasted for more than a decade. Liberia has made remarkable progress since the end of its civil war in 2003: maintained peace and security, attracted foreign investment and much of the diaspora has returned to support the recovering economy, and state institutions are being gradually rebuilt. Despite this level of success, significant challenges remain to address the root causes of the conflict.

3.3.2 Development context: President George Manneh Weah’s administration assumed office on 22 January 2018 when the nation experienced the first peaceful transition of state power from a democratically elected Government to another cover seven decades. Headline economic growth was strong until mid-2014, when the Ebola Virus Disease (EVD) outbreak escalated simultaneously as international commodity prices dropped. Post-conflict growth has not yet led to significant job creation. The previous Government made some clear progress in rehabilitating infrastructure in and around Monrovia, paving from Monrovia to Ganta and some part of the South-eastern region. Notwithstanding, progress has been very limited in reconciliation and developing a mutually supported social contract.

3.3.3 Political Context: Since the return to peace in 2003, Liberia has undergone three combined democratic presidential and legislative elections in 2005, 2011 and 2017. The most recent presidential and legislative elections were held in October 2017 with a presidential run- off on 26 December 2017. President George Manneh Weah took over from Ellen Johnson Sirleaf on 22nd January 2018 as President and established the foundation to implement the new Government Pro Poor Agenda. The key to President Weah’s victory in Liberia rest in the hands of the unskilled youth and indigenous population at the bottom of the pyramid. The “paradox” is that the President’s Pro Poor agenda (Power to the People; Economy and Jobs; Sustaining the Peace; and Governance and Accountability) weighs more heavily on infrastructure development (Roads) which has opportunities to provide immediate jobs for the youth. These are anchored around the highest priority of rapid infrastructure development.

3.3.4 Social and Security Context: Some 50.9% of the population of 4.2 million lives below the poverty line, and 16.5% lives in extreme poverty. This translates into more than 2.2 million Liberians that are unable to meet their basic needs. The country ranks 177th of 188 countries in the 2016 UNDP Human Development Index. An estimated 78% of the labor force holds vulnerable employment without an assured salary (2010 Labor Force Survey). Skills, especially among youth, are limited with some 62% of the labor force between the ages of 15 and 24 having either less than full primary or no education. The conflict created a “lost generation” who could neither access education nor develop vocational skills. The “Drivers of Fragility” include: large rural population excluded from the provision of basic social services, the lack of social cohesion, limited reconciliation, as well as the under-employment of a sizeable youth population, including former combatants. The high rate of youth unemployment in the two countries is a major driver of fragility and a security threat.

IV. IMPLEMENTATION

4.1. Implementation Arrangements Implementation Arrangements at the National Level 4.1.1 In Côte d'Ivoire, the Executing Agency of the Programme will be the Ministry of Economic Infrastructures, through the Agency for Road Management (AGEROUTE). In Liberia, the Ministry of Public Works (MPW) will execute the project. The two Executing Agencies are currently implementing the ongoing Phase I of Bank funded Programme

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(MRU/RDTFP). Both executing agencies have experience in donor-funded projects and are familiar with the implementation requirements of the Bank. 4.1.2 The European Union (EU) and European Investment Bank (EIB) are the co-financing partners of the proposed programme. A Grant Agreement for the EU Grant will be signed between the African Development Bank Group and the Republic of Liberia as per the Framework arrangement between the European Commission and the African Development Bank Group signed on 25 September 2017 on actions administered by the Bank Group and funded or co-funded by the European Union. On the other hand, A separate Financing Agreement with be signed between the Republic of Liberia and the EIB for the Loan for the Programme. The Bank Group shall thereafter sign a Project Implementation Agreement with the EIB in respect to the Procedural Framework between the AfDB and EIB for procurement in joint co-financed public sector project in Liberia.

4.1.3 A Joint Co-financing arrangement has been agreed with the financing partners, which essentially make full use of AfDB procedures for environment, safeguards, financial management, procurement and disbursement rules. Therefore, different separate agreements will be entered into between the EU and the EIB separately authorising the AFDB to act as the lead financier, which defines in detail, implementation arrangement to facilitate coordination, supervision and reporting. Implementation Arrangements at the Regional Level 4.1.4 Implementation arrangements for the Transport and Trade Facilitation will be implemented by a Joint Technical Committee (JTC) comprising of the Technical Ministers in charge of roads and transport in Liberia and the Director General of AGEROUTE in Cote d'Ivoire or their respective representatives with technical guidance from the MRU Secretariat and the ECOWAS Commission. Other Ministries such Liberia Ministry of Finance and Development Planning and Agencies from Liberia and Ivory Coast shall be co-opted as need arises. The two Governments shall prepare a Memorandum of Understanding detailing how the Regional Component shall be coordinated as part of the start-up activities of the Programme. The chair of the JTC will be held on rotational basis between the two countries Technical Ministers in charge of roads and transport. The JTC will meet quarterly and will be responsible for the execution of the "transport facilitation" component and serve as the interface and coordinating unit between national facilitation structures and the regional facilitation committee of ECOWAS. The appropriate community regulations of ECOWAS will serve as the benchmark for monitoring the "transport facilitation" component of the programme.

4.1.5 Procurement Arrangements: All procurements of goods and works through international competitive bidding (ICB) and selection of consultancy services jointly co- financed by the AfDB, EIB, and EU will be done in accordance with the Procurement Framework for Bank Group-financed Operations, October 2015 edition, and the provisions set forth in the Financing Agreement. Specifically, procurement will be done as follows: Bank standard procurement methods and procedures (PMPs), using the relevant standard bidding documents (SBDs) for procurement of some goods, works and consultancy services given that the BPMs have been considered to be better adapted to these types of procurement. The procurement of goods and works through national competitive bidding (NCB) will be conducted in accordance Bank Procurement framework, using the Bank standard bidding documents and in accordance with the provisions set out in the financing agreements. The European Investment Bank (EIB) and the European Union have agreed through an MRA and

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PAGoDA respectively to follow African Development Bank’s “Procurement Policy and Methodology for Bank Group Funded Operations” (BPM), dated October 2015 and following the provisions stated in the Financing Agreement.

4.1.5.1 Other procurement Arrangements 1. The Bank approved the Government's request to resort to advance contracting (AC) (Technical Annex C4) to carry out (AC) amongst other: (i) road works (ii) roads works and supervision consultancy Services (iii) the recruitment of a consultant tasked with monitoring/evaluation of the programme's socioeconomic impact and Technical Assistance. The programme procurement plan (PP) was prepared over a period of 18 months, based on the Bank’s model and it would be agreed to with the EIB.

2. During project appraisal, the Borrower prepared a procurement plan on which the project’s procurement arrangements are based. This plan in consultation with the EIB (per the MRA) was agreed upon by both the Borrower and the Bank team tasked with the project. It will also be available in the project database and on the Bank's website. The procurement plan will be updated annually or as needed by the Borrower’s project to reflect actual project implementation and institutional capacity building needs. Any proposed review of the procurement plan is subject to the Bank’s prior approval, on a lapse-of-time basis. The Borrower will implement the procurement plan as agreed with the Bank (Procurement Arrangements are presented in Annex B5).

3. Special Considerations: Liberia is on the harmonized list of Fragile and Conflict affected Situations (FCS) countries and therefore the Project will trigger paragraph 12 of OP 10.00 Investment Project Financing in order to apply flexibilities and simplification to facilitate procurement implementation. The procurement arrangements therefore will draw on the Bank Guidance on Procurement Procedures in situations of urgent need of Assistance or Capacity Constraints issued on July 1, 2016. 4.1.6 Financial Management: Both the Ministry of Finance (MFDP) – Project Financial Management Unit (PFMU) and Ministry of Public Works (MPW) – Project Implementation Unit (PIU) will have responsibility for project - led components, while overall responsibility for financial control and payment for eligible project activities will be handled by PFMU. The PFMU already handles financial management for some on-going Bank financed and all World Bank financed projects in the country, apart from having handled the first phase of the project. Both the MPW and PFMU have in place controls that provide reasonable assurance on the accuracy and timeliness of reports generated by either. The project will support PFMU with one additional local accounting professional responsible for the MPW portfolio.

4.1.7 Disbursement: Since most of the project core activities would be carried out through consultancy related contracts; therefore, Direct Payment Method of disbursement which consists of making a disbursement at a request of the Borrower/recipient to a contractual beneficiary will be used for the proposed project. Accordingly, EU funds and most AfDB funds will be disbursed through direct payment method to the beneficiaries. In addition, a Revolving Fund method of disbursement which, herein consists of providing advance payments to a Special Account for use by the Borrower/recipient to defray authorized eligible expenses will be available for use only in the following circumstances:  A Special Account opened exclusively to receive replenishment of AfDB funds for minor operational costs and fully justified.

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 A Special Account opened exclusively to receive replenishment of the PAGoDA funds for minor operational costs and fully justified. 4.1.8 The Special Accounts would be managed by PFMU and opening of the Special Accounts is need prior to the commencement of the project activities. Authorized signatories at MPW-PIU and a designated Minister at the Ministry of Public Works would manage processing of eligible expenditure payments. The authorized payments with all relevant supporting documents would be transferred to PFMU for payment execution in accordance with the PFMU financial management manual. Interim Payment requests processed for EIB-managed Special Account by PFMU must only be executed when AfDB advises payment no-objection. The PFMU managed Special Accounts will use the AfDB Disbursement handbook procedures for requesting advances and subsequent replenishments will be based on adequate justification provided for prior advances. Government contributions would be paid to PFMU-managed Special Account for RAP. Although the AfDB will monitor utilization of funds provided by the EIB, it will not assume fiduciary responsibility over the administration of the said funds.

4.1.9 Environmental and Social Safeguards: The MPW/PIU will have both an Environmental Officer and a Social Safeguards Officer to oversee implementation of the ESMP and RAP respectively. They will be responsible for carrying out E & S monitoring and reporting and ensuring that corrective actions are being implemented where there is noncompliance by both the PIU and the Contractors during project implementation.

4.1.10 Reporting: MPW-PIU will report progress on a quarterly basis to the AFDB showing specific progress on activities implemented and financial utilization reports. In addition, PFMU will be responsible for producing Interim Unaudited Financial Reports showing sources and usage of funds submitted to the Bank within 30 days following the end of every calendar quarter. All reports must be shared with co-financiers. In terms of E & S the PIU will be required to submit to the Bank Quarterly E & S reports as part of Project Progress Reporting based on the agreed format. The Contractors will be required to report Monthly to the PIU on E & S monitoring and corrective actions being implemented for all identified non-compliance issues.

4.1.11 Audit: The General Audit Commission Liberia (GAC) is constitutionally mandated to audit all government funds including donor funded projects. The proposed programme will be audited by the Auditor General or a competitively recruited independent audit firm acceptable to the Fund. The audit will be conducted annually in accordance with international auditing standards and audit TOR acceptable to the Fund. The audit reports (comprising of the audited financial statements and related management letter) will be submitted to the Fund within six months following the year audited. The audit reports will be reviewed and cleared by the Fund and the outcome of the review shared with joint co-financiers. While related audit fees will not be paid for GAC’s audit, reasonable incidental expenses could be paid upon review and approval by the Fund.

4.1.12 Overall Conclusion: The assessment of both the MPW and PFMU concluded that there is sufficient FM capacity to ensure: (a) that project funds are used only for the intended purposes in an efficient and economical way; (b) the preparation of accurate, reliable and timely periodic and annual financial reports; (c) any assets purchased using project funds are adequately safeguarded. The project FM Risk as noted below is moderate.

4.1.13 Implementation and Supervision Schedule: The programme will be executed from January 2019 to December 2022. As soon as the financing is approved, the Bank will launch the programme and subsequently organize supervision missions.

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4.2. Monitoring 4.2.1 Monthly and quarterly progress reports will be prepared by consultants tasked with work control and supervision, and submitted to the executing agencies. The executing agencies will regularly submit quarterly programme status reports which also cover ESMP implementation, based on the Bank's standard template and covering all programme activities. These reports will also cover physical, financial, social and environmental aspects, thus making it possible to measure the degree of attainment of programme objectives. Furthermore, the Bank's supervision mission will be conducted every 6 (six) months, in accordance with the Bank's operations manual. Provision is also made for a mid-term review, as appropriate, and a final evaluation, including completion reports to the Bank, EU and EIB. Programme Implementation Monitoring Schedule Duration Stages Monitoring Activities/Feedback Loop 4rd Quarter - 2018 Programme launch Supervision report and progress reports Completion of procurements for civil Procurement plan/progress report 4th Quarter - 2018 engineering works 1st Quarter - 2019 Mobilisation of service providers Supervision report and progress reports Civil engineering works execution rate 4th Quarter - 2019 Supervision report and progress report of 25% Civil engineering works execution rate 3rd Quarter - 2020 Mid-term review and progress report of 60% 3rd Quarter - 2021 Completion of civil engineering works Supervision and progress reports 4th Quarter - 2021 Expiry of guarantee period Supervision report and progress report 4th Quarter - 2022 Programme completion Programme completion report

4.3. Governance 4.3.1 Despite the financial management progress made by Liberia as regards the establishment of the Project Financial Management Unit at the Ministry of Finance and Development Planning, improvements are necessary in the annual financial audit and reports, expenditure policy efficiency, internal audit efficiency and domestic resource mobilisation. A firm political will and commitment to improve governance reforms and consolidate peace and stability have significantly improved performance indicators since 2005, but these efforts are undermined by capacity constraints and, the 2015 Ebola epidemic. An update of the countries fiduciary risk assessment conducted in 2016 revealed that this risk remains high.

4.4. Sustainability 4.4.1 The following interrelated regional activities and agreements help to guarantee the commitment of countries, MRU and ECOWAS to ensure ownership and maintenance of the achievements of the proposed programme: (i) ECOWAS regional instruments (PTRR 2003, etc.) endorsed by the 2 programme countries are the perennial framework for several donors; and (ii) MRU instruments (Operational Plan of the MRU Peace and Security Committee, consolidated Mano River agreement protocols on the establishment of an "economic development and regional integration" commission and a "transport and communications" commission), which are essential to guarantee programme viability.

4.4.2 As regards road infrastructure sustainability, the technical designs were done with EU financing by consulting firms recruited on a competitive basis and were validated after review by the executing agencies and confirmed during programme appraisal. Road works will be executed by companies that have fulfilled the technical and financial criteria in accordance with

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Bank rules, as appropriate, and controlled by an engineering firm chosen among those that have proven experience and staff with the requisite technical qualifications and competence. Furthermore, a technical audit will be conducted by a panel of experts and the executing agencies will closely monitor the works. To preserve programme roads from early destruction, community regulations governing axle load limits will be applied at the border post, which will be equipped with weighing equipment to that end. The sustainability of the corridor through operational and maintenance framework will be executed through the National Road Fund following the establishment of the Roads Authority/Roads Agency by Liberian Government expected to be in operations by July 2018.

4.5. Road Sector Financing 4.5.1 As a strategy of ensuring sustainable financing for road maintenance, good progress has been made on the process of establishment of a Road Fund, is as part of other ongoing Road Sector Reforms in Liberia. The Road Fund Act was passed by the Legislature in September 2016 and the appraisal Mission established that even though the Fund is accruing fund from fuel levy, the Fund is not yet operational. An office of the road fund has being setup at the Ministry of Finance and Development Planning with a Fund Manager recently hired.

4.5.2 During the appraisal mission, the Bank observed that creating a dedicated Road Maintenance Unit in addition to the existing Infrastructure Implementation Unit (IIU) currently responsible for Road Development Activities financed by Development Partners, strongly justifies the need to form a Roads Authority to be responsible for both Road Development and Maintenance. Hence, while the proposed Maintenance Unit in MPW could be an interim measure, scaling up and fast tracking the formation of the Roads Authority is a more long- lasting solution as the case is with the other two Mano River Union Member States (Sierra Leone and Ivory Coast).

4.6. Risk Management

4.6.1 Successful implementation of the programme and attainment of its objectives depend on several factors that could each constitute a risk for the programme. Apart from risks linked to governance and sustainability, the main ones are:

Risks Pertaining to Outcomes 4.6.2 Lack of willingness to apply regional regulations in road transit: This is a moderate risk, mitigated by the pressure exerted by ECOWAS, MRU and donors as well as awareness raising for transporters, border control officers and users on their rights and obligations relating to international road transit. Lastly, the monitoring of performance indicators that will be instituted by the Technical Committee and that of ECOWAS is likely to mitigate this risk. Risks Pertaining to Activities (Outputs) 4.6.3 Unpredictable spike in the cost of works: This risk, deemed high mainly because of the scarcity of road construction materials in the programme area (forest zone) is mitigated by the conclusive results of the relatively recent geotechnical studies (2017), a provision for price escalation and the use of advanced contracting, which will make it possible to launch consultations prior to programme approval, with procurement modes that guarantee broad competition. 4.6.4 Fiduciary risks (contract award and financial management): This is a high risk that will be mitigated through regular supervisions, annual account audits, the implementation of

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monitoring systems (reports, etc.) and launching of the programme, which will provide an opportunity to have an in-depth exchange on the programme implementation arrangements. 4.6.5 Late provision of counterpart funds for payment of RAP: This risk is substantial given the election of a new government in Liberia and budget shortfall. It is mitigated by the financing conditions that provide for the opening of a counterpart account, in the name of the programme, and payment of resettlement prior to the commencement of works. 4.7. Knowledge Building 4.7.1 It is generally known that investments in transport infrastructure have a favourable impact on certain factors (transport costs, increased cross-border trade, etc.) which influence the cost of consumer goods and community living conditions. To verify this relationship in context, the programme includes an agreed set of performance indicators for the efficient measurement of outcomes and results. These indicators are defined previously in paragraph 2.1. 4.7.2 The operational mechanism to be established for monitoring/evaluation of programme impact will facilitate knowledge acquisition and dissemination. A consulting firm that will confirm the baseline situation prior to the commencement of programme activities and affect assessment at the end of the programme will monitor the national indicators. Impact assessment by the beneficiaries will specifically help to determine how the improvement of accessibility and the reduction of transport costs promote peace and security in fragile and conflict situations. 4.7.3 The main national knowledge will be disseminated through a participatory national workshop and stored in the database of the Ministry of Public Works in Liberia. Summaries of this knowledge will be published on the Bank's web site.

V. LEGAL INSTRUMENTS AND AUTHORITY 5.1. Legal Instrument The instruments that will be used to finance this Programme are ADF and TSF Concessional Loans and Grants, EU Grant as part of the EU- Africa Investment Platform (AIP) and EIB Loan. 5.2. Conditions Associated with Bank’s Intervention

I) ADF AND TSF GRANTS FOR THE PROGRAMME A. Conditions Precedent to ADF and TSF Grant Effectiveness The Protocol of Agreements for the Grant shall become effective subject to the Recipient’s fulfilment of the conditions provided for in Section 12.0.1 of the General Conditions. B. Conditions Precedent to First Disbursement of ADF and TSF Grants Apart from Grant effectiveness, the first disbursement of the Grant resources shall be subject to fulfilment by the Recipient of the following conditions to the complete satisfaction of the Fund: i) The execution and delivery of a Co-financing Agreement on terms and conditions acceptable to the Fund or the submission of evidence that the Recipient has secured financing from alternative sources to cover the financing gap resulting from failure to obtain the Co-financing. C. Other Conditions The Borrower must also provide the Fund, to its full satisfaction, with:

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(i) Submission of satisfactory evidence that all PAPs in respect of civil works for the first twenty (20) kilometers for the Sanniquellie- Loguatuo Road and the first ten (10) Kilometers for the Fish Town – Kelipo Road have been compensated and/ or resettled in accordance with the Environmental and Social Management Plan (“ESMP”), the RAP and or the agreed Works and Compensation Schedule and in such lot and in any case before the PAPs actual move and/ or taking of land and related assets; D. Undertakings The Borrower undertakes to execute the following activities to the full satisfaction of the fund: i) Execute the Programme, the Environmental and Social Management Plan (ESMP) and the Resettlement Action Plan (RAP) and have them implemented by its contractors in accordance with national laws, recommendations, prescriptions and procedures contained in the ESMP and the RP, and with the applicable ADF rules and procedures and Bank’s integrated Safeguard Policies; ii) Provide the Fund with quarterly reports on ESMP and RP implementation, including, where applicable, any weaknesses and corrective actions initiated or to be initiated; iii) Appoint or assign a team with qualification and terms of reference acceptable to the Bank to support the implementation, monitoring and reporting of the ESMP and RAP in the MPW PIU and CESMP for the Contractors; and iv) Appoint or assign an accountant to support the PFMU and undertake the responsibility for the Ministry of Public Works (MPW) portfolio with terms of reference and qualifications acceptable to the Bank. II) ADF AND TSF LOANS FOR THE PROGRAMME A. Conditions Precedent to ADF and TSF Loan Effectiveness The loan agreements shall become effective subject to the Borrower’s fulfilment of the conditions provided for in Section 12.0.1 of the General Conditions. B. Conditions Precedent to First Disbursement of ADF and TSF Loans Apart from loan effectiveness, the first disbursement of the loan resources shall be subject to fulfilment by the Borrower of the following conditions to the complete satisfaction of the Fund:

i) The execution and delivery of a Co-financing Agreement on terms and conditions acceptable to the Fund or the submission of evidence that the Recipient has secured financing from alternative sources to cover the financing gap resulting from failure to obtain the Co-financing.

C. Other Conditions

The Borrower must also provide the Fund, to its full satisfaction, with: i) Submission of satisfactory evidence that all PAPs in respect of civil works for the first twenty (20) kilometres for the Sanniquellie- Loguatuo Road and the first ten (10) Kilometres for the Fish Town – Kelipo Road have been compensated and/ or resettled in accordance with the Environmental and Social Management Plan (“ESMP”), the RAP and or the agreed Works and Compensation Schedule and in such lot and in any case before the PAPs actual move and/ or taking of land and related assets;

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D. Undertakings The Borrower undertakes to execute the following activities to the full satisfaction of the fund: i) Execute the Programme, the Environmental and Social Management Plan (ESMP) and the Resettlement Action Plan (RAP) and have them implemented by its contractors in accordance with national laws, recommendations, prescriptions and procedures contained in the ESMP and the RP, and with the applicable ADF rules and procedures and Bank’s integrated Safeguard Policies; ii) Provide the Fund with quarterly reports on ESMP and RP implementation, including, where applicable, any weaknesses and corrective actions initiated or to be initiated; iii) Appoint or assign a team with qualifications and terms of reference acceptable to the Bank to support the implementation, monitoring and reporting of the ESMP and RAP in the MPW PIU and CESMP for the Contractors; and iv) Appoint or assign an accountant to support the PFMU and undertake the responsibility for the Ministry of Public Works (MPW) portfolio with terms of reference and qualifications acceptable to the Bank.

III) EU GRANT (EU – AFRICA INVESTMENT PLATFORM) FOR THE PROGRAMME A protocol of Agreement for the EU Grant will be signed between the African Development Bank Group and the Republic of Liberia as per the Framework arrangement between the European Commission and the African Development Bank Group signed on 25 September 2017 on actions administered by the Bank Group and funded or co-funded by the European Union. A. Conditions Precedent to EU Grant Effectiveness The Protocol of Agreement for the Grant shall become effective subject to the Recipient’s fulfilment of the conditions provided for in Section 12.0.1 of the General Conditions. B. Conditions Precedent to First Disbursement for the EU Grant Apart from Grant effectiveness, the first disbursement of the Grant resources shall be subject to fulfilment by the Recipient of the following conditions to the complete satisfaction of the Fund: (a) The execution and delivery of a Co-financing Agreement on terms and conditions acceptable to the Fund or the submission of evidence that the Recipient has secured financing from alternative sources to cover the financing gap resulting from failure to obtain the Co-financing. C. Other Conditions The Borrower must also provide the Fund, to its full satisfaction, with: (i) Submission of satisfactory evidence that all PAPs in respect of civil works for the first twenty (20) kilometres for the Sanniquellie- Loguatuo Road and the first ten (10) Kilometres for the Fish Town – Kelipo Road have been compensated and/ or resettled in accordance with the Environmental and Social Management Plan (“ESMP”), the RAP and or the agreed Works and Compensation Schedule and in such lot and in any case before the PAPs actual move and/ or taking of land and related assets; D. Undertakings The Borrower undertakes to execute the following activities to the full satisfaction of the fund:

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i) Execute the Programme, the Environmental and Social Management Plan (ESMP) and the Resettlement Action Plan (RAP) and have them implemented by its contractors in accordance with national laws, recommendations, prescriptions and procedures contained in the ESMP and the RP, and with the applicable ADF rules and procedures and Bank’s integrated Safeguard Policies; ii) Provide the Fund with quarterly reports on ESMP and RP implementation, including, where applicable, any weaknesses and corrective actions initiated or to be initiated; iii) Appoint or assign a team with qualification and terms of reference acceptable to the Bank to support the implementation, monitoring and reporting of the ESMP and RAP in the MPW PIU and CESMP for the Contractors; and iv) Appoint or assign an accountant to support the PFMU and undertake the responsibility for the Ministry of Public Works (MPW) portfolio with terms of reference and qualifications acceptable to the Bank.

IV) EUROPEAN INVESTMENT BANK (EIB) LOAN A separate Financing Agreement with be signed between the Republic of Liberia and the EIB for the Loan for the Project. The Bank Group shall thereafter sign a Project Implementation Agreement with the EIB in respect of the Procedural Framework between the AfDB and EIB for procurement in joint co- financed public sector project in Liberia.

5.3. Compliance with Bank Policies * No provision is made for exceptions to the policies. * The proposed Programme complies with all applicable Bank policies.

VI. RECOMMENDATION Management recommends that (i) the Boards of Directors approve the proposed ADF (PBA) & Regional Envelope Loans of UA 4,400,000 and UA 9,000,000 respectively; TSF Loan of UA 9,150,000; two ADF & TSF Grants of UA 2,800,000 and UA 3,930,000 respectively for Liberia; and (ii) the Boards of Directors approve a EU PAGoDA Grant of EUR 20.20 million to the Government of Liberia for the purpose of financing Phase II of the Mano River Union Road Development and Transport Facilitation Programme as described and in accordance with the conditions stipulated in this report and also that (iii) the Boards approve the universal waiver of the Rule of Origin concerning the PAGoDA funding to provide for universal procurement so as to match the ADF regime as the funds will co-finance the same contracts as ADF

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Annex I. Comparative Socio-economic Indicators of the Two Countries Liberia COMPARATIVE SOCIO-ECONOMIC INDICATORS

Develo- Develo- Year Liberia Africa ping ped Countries Countries

Basic Indicators GNI Per Capita US $ Area ( '000 Km²) 2017 111 30,067 80,386 53,939 Total Population (millions) 2017 4.7 1,184.5 5,945.0 1,401.5 2500 Urban Population (% of Total) 2017 50.5 39.7 47.0 80.7 2000 Population Density (per Km²) 2017 49.1 40.3 78.5 25.4 1500 GNI per Capita (US $) 2016 370 2 045 4 226 38 317 1000 Labor Force Participation *- Total (%) 2017 61.0 66.3 67.7 72.0 Labor Force Participation **- Female (%) 2017 57.9 56.5 53.0 64.5 500

Sex Ratio (per 100 female) 0

2000 2005 2010 2016 2012 2013 2014 2015 2017 101.8 0.801 0.506 0.792 2011 Human Dev elop. Index (Rank among 187 countries) 2015 177 ...... Popul. Liv ing Below $ 1.90 a Day (% of Population) 2014 38.6 39.6 17.0 ... Liberia Africa Demographic Indicators Population Grow th Rate - Total (%) 2017 2.5 2.6 1.3 0.6 Population Grow th Rate - Urban (%) 2017 3.3 3.6 2.6 0.8 Population < 15 y ears (%) Population Growth Rate 2017 41.7 41.0 28.3 17.3 (%) Population 15-24 y ears (%) 2017 19.6 3.5 6.2 16.0 6.0 Population >= 65 y ears (%) 2017 3.0 80.1 54.6 50.5 Dependency Ratio (%) 2017 80.9 100.1 102.8 97.4 5.0 Female Population 15-49 y ears (% of total population) 2017 23.7 24.0 25.8 23.0 4.0 Life Ex pectancy at Birth - Total (y ears) 2017 61.9 61.2 68.9 79.1 3.0 Life Ex pectancy at Birth - Female (y ears) 2017 62.9 62.6 70.8 82.1 2.0 Crude Birth Rate (per 1,000) 2017 33.8 34.8 21.0 11.6 1.0

Crude Death Rate (per 1,000) 2017 8.2 9.3 7.7 8.8 0.0

2005 2010 2012 2013 2014 2015 2016 2017 Infant Mortality Rate (per 1,000) 2016 51.2 52.2 35.2 5.8 2000 Child Mortality Rate (per 1,000) 2016 67.4 75.5 47.3 6.8 Total Fertility Rate (per w oman) 2017 4.5 4.6 2.6 1.7 Liberia Africa Maternal Mortality Rate (per 100,000) 2015 725.0 411.3 230.0 22.0 Women Using Contraception (%) 2017 21.2 35.3 62.1 ...

Health & Nutrition Indicators Phy sicians (per 100,000 people) 2010 2.3 46.9 118.1 308.0 Life Expectancy at Birth Nurses and midw iv es (per 100,000 people) 2010 45.6 133.4 202.9 857.4 (years) Births attended by Trained Health Personnel (%) 2013 61.1 50.6 67.7 ... 80 Access to Safe Water (% of Population) 2015 75.6 71.6 89.1 99.0 70 60 Access to Sanitation (% of Population) 2015 16.9 51.3 57 69 50 Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 40 2016 1.6 39.4 60.8 96.3 30 Incidence of Tuberculosis (per 100,000) 2016 308.0 3.8 1.2 ... 20 Child Immunization Against Tuberculosis (%) 10

2016 97.0 245.9 149.0 22.0 0

2005 2010 2012 2013 2014 2015 2016 2017 Child Immunization Against Measles (%) 2016 80.0 84.1 90.0 ... 2000 Underw eight Children (% of children under 5 y ears) 2013 15.3 76.0 82.7 93.9

Prev alence of stunding 2013 32.1 20.8 17.0 0.9 Liberia Africa Prev alence of undernourishment (% of pop.) 2015 42.8 2 621 2 335 3 416 Public Ex penditure on Health (as % of GDP) 2014 3.2 2.7 3.1 7.3

Education Indicators Gross Enrolment Ratio (%) Primary School - Total 2015 94.1 106.4 109.4 101.3 Primary School - Female 2015 89.3 102.6 107.6 101.1 Infant Mortality Rate Secondary School - Total 2015 37.4 54.6 69.0 100.2 ( Per 1000 ) Secondary School - Female 2015 32.6 51.4 67.7 99.9 140 Primary School Female Teaching Staff (% of Total) 2015 13.1 45.1 58.1 81.6 120 Adult literacy Rate - Total (%) 2007 42.9 61.8 80.4 99.2 100 Adult literacy Rate - Male (%) 2007 60.8 70.7 85.9 99.3 80 Adult literacy Rate - Female (%) 2007 27.0 53.4 75.2 99.0 60 Percentage of GDP Spent on Education 2012 2.8 5.3 4.3 5.5 40 20

0

2010 2013 2005 2011 2012 2014 2015 2016 Environmental Indicators 2000 Land Use (Arable Land as % of Total Land Area) 2015 5.2 8.6 11.9 9.4 Agricultural Land (as % of land area) 2015 28.0 43.2 43.4 30.0 Forest (As % of Land Area) 2015 43.4 23.3 28.0 34.5 Liberia Africa Per Capita CO2 Emissions (metric tons) 2014 0.2 1.1 3.0 11.6

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update : May 2018 UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports. Note : n.a. : Not Applicable ; … : Data Not Available. * Labor force participation rate, total (% of total population ages 15+) ** Labor force participation rate, female (% of female population ages 15+)

I

Côte d'Ivoire COMPARATIVE SOCIO-ECONOMIC INDICATORS

Develo- Develo- Côte Year Africa ping ped d'Ivoire Countries Countries Basic Indicators GNI Per Capita US $ Area ( '000 Km²) 2017 322 30 067 80 386 53 939 Total Population (millions) 2017 23,8 1 184,5 5 945,0 1 401,5 2500 Urban Population (% of Total) 2017 51,9 39,7 47,0 80,7 2000

Population Density (per Km²) 2017 74,9 40,3 78,5 25,4 1500 GNI per Capita (US $) 2016 1 520 2 045 4 226 38 317 1000 Labor Force Participation *- Total (%) 2017 67,1 66,3 67,7 72,0 Labor Force Participation **- Female (%) 2017 52,6 56,5 53,0 64,5 500

Sex Ratio (per 100 female) 0

2011 2015 2005 2010 2012 2013 2014 2016 2017 103,2 0,801 0,506 0,792 2000 Human Dev elop. Index (Rank among 187 countries) 2015 171 ...... Popul. Liv ing Below $ 1.90 a Day (% of Population) 2015 27,9 39,6 17,0 ... Côte d'Ivoire A frica Demographic Indicators Population Grow th Rate - Total (%) 2017 2,4 2,6 1,3 0,6 Population Grow th Rate - Urban (%) 2017 3,5 3,6 2,6 0,8 Population < 15 y ears (%) 2017 42,1 41,0 28,3 17,3 Population Growth Rate (%) Population 15-24 y ears (%) 2017 20,4 3,5 6,2 16,0 3,0 Population >= 65 y ears (%) 2017 3,0 80,1 54,6 50,5 2,5 Dependency Ratio (%) 2017 82,5 100,1 102,8 97,4 Female Population 15-49 y ears (% of total population) 2017 23,6 24,0 25,8 23,0 2,0 Life Ex pectancy at Birth - Total (y ears) 2017 52,6 61,2 68,9 79,1 1,5 Life Ex pectancy at Birth - Female (y ears) 2017 53,6 62,6 70,8 82,1 1,0 Crude Birth Rate (per 1,000) 2017 36,4 34,8 21,0 11,6 0,5

Crude Death Rate (per 1,000) 2017 12,9 9,3 7,7 8,8 0,0

2000 2012 2014 2017 2010 2013 2015 2016 Infant Mortality Rate (per 1,000) 2016 66,0 52,2 35,2 5,8 2005 Child Mortality Rate (per 1,000) 2016 91,8 75,5 47,3 6,8 Total Fertility Rate (per w oman) 2017 4,8 4,6 2,6 1,7 Côte d'Ivoire A frica Maternal Mortality Rate (per 100,000) 2015 645,0 411,3 230,0 22,0 Women Using Contraception (%) 2017 20,5 35,3 62,1 ...

Health & Nutrition Indicators Phy sicians (per 100,000 people) 2008 14,3 46,9 118,1 308,0 Life Expectancy at Birth Nurses and midw iv es (per 100,000 people) 2008 47,9 133,4 202,9 857,4 (years) Births attended by Trained Health Personnel (%) 2012 59,4 50,6 67,7 ... 80 Access to Safe Water (% of Population) 2015 81,9 71,6 89,1 99,0 70 60 Access to Sanitation (% of Population) 2015 22,5 51,3 57 69 50 Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 40 2016 2,7 39,4 60,8 96,3 30 Incidence of Tuberculosis (per 100,000) 2016 153,0 3,8 1,2 ... 20 Child Immunization Against Tuberculosis (%) 10

2016 95,0 245,9 149,0 22,0 0

2012 2016 2005 2010 2013 2014 2015 2017 Child Immunization Against Measles (%) 2016 77,0 84,1 90,0 ... 2000 Underw eight Children (% of children under 5 y ears) 2012 15,7 76,0 82,7 93,9

Prev alence of stunding 2012 29,6 20,8 17,0 0,9 Côte d'Ivoire A frica Prev alence of undernourishment (% of pop.) 2015 15,4 2 621 2 335 3 416 Public Ex penditure on Health (as % of GDP) 2014 1,7 2,7 3,1 7,3

Education Indicators Gross Enrolment Ratio (%) Primary School - Total 2016 96,7 106,4 109,4 101,3 Primary School - Female 2016 91,3 102,6 107,6 101,1 Infant Mortality Rate Secondary School - Total 2016 46,1 54,6 69,0 100,2 ( Per 1000 ) Secondary School - Female 2016 38,8 51,4 67,7 99,9 120 Primary School Female Teaching Staff (% of Total) 2016 28,0 45,1 58,1 81,6 100 Adult literacy Rate - Total (%) 2014 43,9 61,8 80,4 99,2 80 Adult literacy Rate - Male (%) 2014 50,7 70,7 85,9 99,3 60 Adult literacy Rate - Female (%) 2014 36,8 53,4 75,2 99,0 40 Percentage of GDP Spent on Education 2015 4,8 5,3 4,3 5,5 20

0

2000 2005 2012 2016 2011 2013 2014 2015 Environmental Indicators 2010 Land Use (Arable Land as % of Total Land Area) 2015 9,1 8,6 11,9 9,4 Agricultural Land (as % of land area) 2015 64,8 43,2 43,4 30,0 Forest (As % of Land Area) 2015 32,7 23,3 28,0 34,5 Côte d'Ivoire A frica Per Capita CO2 Emissions (metric tons) 2014 0,5 1,1 3,0 11,6

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update : May 2018 UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports. Note : n.a. : Not Applicable ; … : Data Not Available. * Labor force participation rate, total (% of total population ages 15+) ** Labor force participation rate, female (% of female population ages 15+)

II

Annex II. Table of Bank Group Operations in the Two Countries

Liberia: Bank Operations as of 18/03/2018 Liberian Portfolio as at March, 2018 Amount Date Closing Amount Project Name Approved Approved Date (USD) (UAm ) Agriculture and Rural Development

Smallholder Agriculture Productivity Enhancement and 02.05.2012 31.12.2019 33.08 46.97 Commercialization Project (SAPEC)

Banking

Equity in ACCES Bank Liberia 23.04.2008 31.03.2018 0.91 1.22

Energy

CLSG-Rural Electrification -Liberia 06.11.2013 31.12.2018 16.84 23.92

CLSG Electricity Interconnection Project 06.11.2013 31.12.2018 8.1 11.94

Liberia Energy Efficiency and Access Project 13.12.2016 31.12.2020 31.38 44.56

Governance

Institutional Support for the Integrated Public Finance 30.01.2017 31.12.2019 6.26 8.89 Management Project Phase II

Transport

Paving Fish Town - Harper Road Phase I 04.09.2013 31.12.2019 42.04 59.7

MRU Road Construction and Facilitation Project 18.12.2014 30.06.2020 76.88 109.17

Water and Sanitation Urban Water and Sanitation Project 18.05.2010 31.05.2018 26.09 37.05 Multisector Technical Assistance/Capacity Building

Technical Assistance and Capacity Building to LISGIS 11.11.2013 30.03.2018 0.50 0.71

Program of Assistance to Trade Support Institutions in 31.12. 10.10.2013 0.66 0.94 Liberia 2019

Liberia Youth Entrepreneurship and Employment Project 04.05.2016 30.06.2019 1.74 0.17

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Côte d'Ivoire: Bank Operations as of 18/03/2018 Intitulé du projet Montant (en millions d'UC) Principales dates Taux de Date de Approuvé Décaissé décaissement approbation Signature clôture PROJETS NATIONAUX (Privé et Public) SECTEURS  1. Projet d‘expansion de la centrale d'AZITO Energie 24,99 25,00 100,00% 19-déc-12 18-oct-13 15-nov-15

 2. Projet d'extension de la Centrale Electrique (CIPREL) 42,34 42,34 100,00% 24-juil-13 14-aôut-13 31-déc-16

 3. Projet d'extension de la Centrale Electrique – cycle combiné 13,20 0,00 0,00% 04-nov-15 14-0ct-16 13-août-28 (CIPREL)  4. Projet de renforcement des réseaux électriques de transport et 117,59 8,40 7,10% 16-nov-16 20-déc-16 31-déc-20 de distribution  5. Projet de centrale hydroélectrique de Singrobo 42,66 0,00 0,00% 06-déc-17 Sous-Total Energie 240,80 75,70 31,40%  6. Projet d'Appui aux Infrastructures Agricoles dans la région de Agriculture 21,60 14,76 68,33% 01-mars-12 20-mars-12 28-févr.-19 l'Indénié-Djuablin (PAIA-ID)  7. Projet de pôle agro-industriel dans la région Bélier (2PAI- 0,00% 09-fev-15 12-juil-17 54,66 0,00 17-oct-14 BELIER)  8. Sucden Soft Commodity Facility 84,93 84,93 100,00% 10-juil-15 07-dec-15 31-mars-16  9. PPF – Enable Youth Côte d’Ivoire 1,00 0,11 10,52% 07-juil-16 14-fév-17 31-déc-18  10-Projet de développement de chaîne de valeur dans la région 0,00% 14-fév-17 4,00 0,00 21-oct-16 30-juin-20 de l'Indénié  11. Projet de pôle agro-industriel dans la région Bélier (2PAI- 1,67% 14-fév-17 31-déc-22 26,04 0,44 25-jan-17 BELIER)  12. Projet de pôle agro-industriel dans la région Bélier (2PAI- 0,00% 14-fév-17 31-déc-22 3,40 0,00 28-jan-17 BELIER) Sous-Total Agriculture 198,30 101,30 51,10%  13. Henri Konan Bédié Toll Bridge Transport 9,01 0,00 0,00% 04-nov-15 14-oct-16 28-juin-27  14. Projet de transport urbain d'Abidjan 207,54 0,00 0,00% 16-déc-16 29-déc-16 31-déc-21  15. Projet Air Côte d’Ivoire 96,21 34,76 36,13% 08-nov-17 10-nov-17 31-déc-23 Sous-Total Transport 312,76 34,76 11,11%  16. Projet d’appui au renforcement de la compétitivité du secteur Gouvernance 10,00 1,10 11,32% 30-sept-15 11-déc-15 30-nov-19 industriel (PARCSI)  17. Projet d’appui à la gestion économique et financière 16,40 0,10 0,61% 30-mar-17 14-juil-17 31-déc-19

(PAGEF)  18. Programme d’appui à la gouvernance économique et à la 36,23 36,23 100,00% 14-juil-17 14-juil-17 31-déc-17

croissance (PAGEC) Sous-Total Gouvernance 63,29 37,78 59,69%  19. Projet d’appui au développement de l’entreprenariat Finance 0,65 0,30 45,15% 16-déc-14 04-sep-15 30-juin-18 Sous-Total Finance 0,65 0,30 45,15%  21. Projet d'appui valorisation déchet liquide et promotion Eau et 1,07 0,22 20,25% 04-sept-13 13-juin-14 31-déc-18 emploi à Bouake et Katiola (African Water Facility) assainissement Sous-Total Eau et Assainissement 1,07 0,22 20,25% Total Projets nationaux (public et privé) (A) 816,87 249,98 30,60% PROJETS REGIONAUX SECTEURS  22. Programme d'aménagement des routes et de facilitation du transport dans les pays du Fleuve Mano (CI/Guinée et Transport 65,46 9,88 15,09% 18-déc-14 04-juin-15 30-juin-20 CI/Liberia)  23. Prêt additionnel - Programme d'aménagement des routes et de facilitation du transport dans les pays du Fleuve Mano 31,18 4,73 15,17% 03-juin-15 02-mars-15 30-juin-20 (CI/Guinée et CI/Liberia)  24. Projet d'aménagement et de facilitation de transport sur le 72,70 8,90 12,24% 26-nov-15 03-mai-16 30-juin-21 corridor Bamako-Zantiebougou-Boundiali-San Pedro (CI/Mali)  25. Projet d’interconnexion des réseaux électriques de la Côte Energie 33,0 2,09 6,30% 06-nov-13 22-nov-13 31-déc-18 d’Ivoire, du Liberia, de la Sierra Leone et de la Guinée (CLSG).  26. Programme d'adhésion à l'Assurance du Commerce en Finance 9,93 9,93 100,00% 23-sept-15 03-mai-16 31-déc-17 Afrique (ACAATIA) Total Projets régionaux (B) 212,27 34,95 16,46% TOTAL GLOBAL PROJETS (nationaux et régionaux) (C) = (A 1029,14 284,93 27,68% + B)

IV

Annex III. Programme Costs Summary of Programme Costs by Expenditure Category

EXPENDITURE EU million UA million CATEGORIES F.E. L.C. Total F.E. L.C. Total 1 Goods 0.17 0.04 0.21 0.14 0.04 0.18

2 Works 45.66 11.41 57.07 38.37 9.59 47.96

3 Services 5.81 1.45 7.26 4.88 1.22 6.10 Compensation of 4 - 1.59 1.59 - 1.34 1.34 PAP 5 Miscellaneous 1.03 0.26 1.29 0.86 0.22 1.08

Base Cost 52.66 14.76 67.43 44.26 12.40 56.66 Physical contingencies 3.07 0.77 3.83 2.58 0.64 3.22

Price escalation 1.90 0.48 2.38 1.60 0.40 2.00

Total cost 58.91 14.74 73.64 49.50 12.38 61.88

ADF Loan Categories of Expenditure (In UA Millions) In UA millions Categories Foreign Cost Local Cost Total

Goods 0.112 0.028 0.140

Works 7.768 1.942 9.710 Services 0.000 0.000 0.000 Operating Expenses 0.864 0.216 1.080 Total Base Cost 8.744 2.186 10.930 Physical 1.008 0.252 1.260 Contingencies Price Contingencies 0.968 0.242 1.210 TOTAL 10.720 2.680 13.400

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TSF Loan Categories of Expenditure (In UA Millions) In UA millions Categories Foreign Cost Local Cost Total

Goods 0.320 0.080 0.400

Works 6.360 1.590 7.950 Services 0.000 0.000 0.000 Other 0.000 0.000 0.000 Total Base Cost 6.680 1.670 8.350 Physical 0.400 0.100 0.500 Contingencies Price Contingencies 0.240 0.060 0.300 TOTAL 7.320 1.830 9.150

ADF Grant Categories of Expenditure (In UA Millions) In UA millions Categories Foreign Cost Local Cost Total

Goods 0.000 0.000 0.000

Works 2.128 0.532 2.660 Services 0.112 0.028 0.140 Other 0.000 0.000 0.000 Total Base Cost 2.240 0.560 2.800 Physical 0.000 0.000 0.000 Contingencies Price Contingencies 0.000 0.000 0.000 TOTAL 2.240 0.560 2.800

TSF Grant Categories of Expenditure (In UA Millions) In UA millions Categories Foreign Cost Local Cost Total

Goods 0.000 0.000 0.000

Works 0.000 0.000 0.000 Services 2.184 0.546 2.730

Other 0.000 0.000 0.000

Total Base Cost 2.184 0.546 2.730 Physical 0.480 0.120 0.600 Contingencies Price Contingencies 0.480 0.120 0.600 TOTAL 3.144 0.786 3.930

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EU PAGoDA Grant Categories of Expenditure (In EUR Millions)

Expenditure in Euros currency (Millions) Category Local Currency Foreign Currency Total

Goods, 0.000 0.000 0.000

Consulting services 0.770 3.080 3.850

Works 3.176 12.704 15.880 Bank’s Administrative 0.094 0.376 0.470 fee

Total cost 4.040 16.160 20.200

EIB Loan Categories of Expenditure (In EUR Millions) In EUR millions Categories Foreign Cost Local Cost Total

Goods 0.000 0.000 0.000

Works 13.600 3.400 17.000 Services 0.000 0.000 0.000 Other 0.000 0.000 0.000 Total Base Cost 13.600 3.400 17.000 Physical 0.000 0.000 0.000 Contingencies Price Contingencies 0.000 0.000 0.000 TOTAL 13.600 3.4000 17.000

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Annex IV. Map of the Programme Areas

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