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ii LANGUAGE: ENGLISH Original: English PROJECT: LUNGI – PORT LOKO ROAD UPGRADING COUNTRY: SIERRA LEONE PROJECT APPRAISAL REPORT DATE: APRIL 2009 Team Leader : Mr. BENARD Manuel, Transport Economist OINF.1 Ext. 2302 Team Members : Mr. WA-KYENDO Mumina, Transport Engineer OINF.2 Ext. 3478 Appraisal Mr. SHALABY Hany, Environmentalist OSAN.3 Ext. 3006 Team Mrs. MUNTU Julia, Gender Expert /Socio-Economist OINF.0 Ext. 2652 Mr. BANGURA Abdul, Infrastructure Officer SLFO Ext. 6262 Sector Director : Mr. G. MBESHERUBUSA OINF Ext. 2034 Country Director : Mr. F. PERRAULT ORWB Ext. 2036 Division Manager : Mr. A KIES OINF.1 Ext. 2282 Mr. BANDA NGENGE ORPF Ext. 2564 Ms. LYDIE EHOUMAN OINF.1 Ext. 3442 Peer Review Mr. PATRICK RUGUMIRE OINF.1 Ext. 3442 Mrs MARIEHELLEN M. KAPINGA OINF.1 Ext. 3561 Mr. CECIL NARTEY SLFO Ext. 6262 iii TABLE OF CONTENTS Pages I STRATEGIC THRUST AND OBJECTIVES................................................................1 1.1 Project Linkage with Country Strategy and Objectives ............................................ 1 1.2 Rationale for Bank’s involvement............................................................................. 1 1.3 Donor Coordination................................................................................................... 2 II PROJECT DESCRIPTION .............................................................................................2 2.1 Project Components...................................................................................................2 2.2 Technical Options Retained and Studied .................................................................. 3 2.3 Project Type............................................................................................................... 4 2.4 Project Cost and Financing Arrangements................................................................ 4 2.5 Project Area and Beneficiaries .................................................................................. 6 2.6 Participatory Approach to Project Identification, Design and Implementation ........ 6 2.7 Bank Group Experience, Lessons reflected in Project Design.................................. 7 2.8 Key Performance Indicators...................................................................................... 7 III PROJECT FEASIBILITY ...............................................................................................8 3.1 Economic Performance ............................................................................................. 8 3.2 Environmental and Social Impact ............................................................................. 9 IV IMPLEMENTATION ....................................................................................................12 4.1 Implementation Arrangements ................................................................................ 12 4.2 Monitoring and Evaluation...................................................................................... 14 4.3 Governance.............................................................................................................. 14 4.4 Sustainability ........................................................................................................... 15 4.5 Risk Management.................................................................................................... 15 4.6 Knowledge Building................................................................................................ 16 V LEGAL INSTRUMENT AND AUTHORITY .............................................................16 5.1 Legal Instrument..................................................................................................... 16 5.2 Conditions of Grant Approval................................................................................ 16 5.3 Compliance with Bank policies.............................................................................. 17 VI RECOMMENDATIONS................................................................................................17 6.1 Conclusion and recommendation............................................................................ 17 iv LIST OF ANNEXES Number No. TITLE of pages Annexes I. Sierra Leone Socioeconomic Indicators 1 II. Table of Bank Portfolio in Sierra Leone 1 III. Map of Project Area 1 Technical Annexes A. Support for Key Arguments of the Report A.1 Project Costs (details) 1 A.2 Implementation Arrangements (details) 1 A.3 Financial Management and Disbursement Arrangements (details) 1 A.4 Procurement Arrangements 3 A.5 Auditing Arrangements 1 A.6 Economic and Financial Analysis 4 A.7 Environmental and Social Analysis 9 A.8 Project Sustainability 1 A.9 Project Preparation and Supervision 1 B. Supplementary Technical Annexes B.1 Recommendations from the study on unit costs of road works 1 B.2 Procurement plan 1 LIST OF TABLES No. TITLE Page Table 2.1: Project Components............................................................................................................2 Table 2.2: Project Alternatives & Reasons for Rejection for Lungi – Port Loko road………………3 Table 2.3: Lungi - Port Loko Road Upgrading Project: Cost by Project Component .........................5 Table 2.4: Lungi - Port Loko Road Upgrading Project Costs with Built-in Contingencies ................5 Table 2.5: Project Cost by Category of Expenditure ...........................................................................5 Table 2.6: Expenditure schedule by component (Milllions UA).........................................................6 Table 3.1: Summary of Economic Analysis ........................................................................................8 Table 4.1: Summary of Procurement Arrangements .........................................................................13 v Currency Equivalents (December 2008) UA 1 = SLL 4466 UA 1 = US$ 1.48797 US$ 1 = SLL 3001 Fiscal Year 1 January - 31 December Weights and Measures 1 kilogram (kg) = 2.205 pounds 1 metre (m) = 3.28 feet 1 kilometre (km) = 0.621 mile 1 square kilometre (km2) = 0.3861 sq mile 1 hectare (ha) = 2.471 acres Acronyms and Abbreviations AADT Annual Average Daily Traffic AC Asphaltic Concrete ADB African Development Bank ADF African Development Fund ADT Average Daily Traffic (over a week period of time) AIDS Acquired Immune Deficiency Syndrome AutoCAD Engineering Drawing Software B/C Benefit Cost Ratio BOQ Bills of Quantities BSL Bank of Sierra Leone CBR California Bearing Ratio CDS Cross Drainage Structures CIF Cost, Insurance, Freight DBST Double Bituminous Surface Treatment DCP Dynamic Cone Penetrometer DXF Data Exchange Format ECOWAS Economic Community of West African States EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EU European Union FSF Fragile State Fund GOSL Government of Sierra Leone HIV Human Immunodeficiency Virus IDA International Development Association IMT Intermediate Modes of Transportation IRI International Roughness Index IRR Internal Rate of Return kph Kilometer per hour NEPAD New Partnership for Africa’s Development NGSP National Gender Strategic Plan vi NPV Net Present Value OPEC Organization of Petroleum Exporters Countries PA Project Area PAP Project Affected Persons/People PHU Peripheral Health Units PRSP Poverty Reduction Strategy Paper SLL Sierra Leone Currency (Leone) SLRA Sierra Leone Road Authority STAP NEPAD Infrastructure Short-Term Action Plan STD Sexually Transmitted Diseases UNCTAD United Nations Conference on Trade and Development USD United States Dollar VAT Value Added Tax VPD Vehicles per day SPW Student’s Partnership Worldwide VOC Vehicle Operating Costs VOP Variation of Price VPD Vehicles per day WB World Bank ZOI Zone of Influence vii Customer Sheet COUNTRIES : Sierra Leone PROJECT TITLE : Port Loko – Lungi Road Rehabilitation Project LOCATION : North-West of Sierra Leone BORROWER : Non applicable DONEE : Republic of Sierra Leone EXECUTING AGENCY : Sierra Leone Roads Authority (SLRA) PMB 1324, Kissy, Freetown, Sierra Leone Tel: (232) 22-226 565 Fax: +232 -22-222 346 e-mail: [email protected] Financing Plan Source Amount in UA Instrument Million ADF GRANT (country allocations) 26.26 Project Grant GOSL 0.6 PAP compensation TOTAL 26.86 Important Financial Information Loan/Grant currency Unit of Account (UA) Type of interest Not applicable Interest rate margin Not applicable Service charge for ADF loan Not applicable Commitment charge for ADF Not applicable loan Other charges Not applicable ADF loan duration Not applicable ADF loan grace period Not applicable FRR, NPV (baseline scenario) Not applicable ERR, NPV (baseline scenario) 16.0%, USD 113.10 million Duration – Main Stages (expected) Activities (month, year) Approval of concept note January 2009 Project approval May 2009 Effectiveness June 2009 Last disbursement December 2013 Completion December 2014 Last repayment date n/a viii EXECUTIVE SUMMARY Overview of the Project 1. As part of its economic development and poverty reduction strategy, Sierra Leone has defined closing infrastructure gaps and promoting private sector growth as essential. The Lungi- Port Loko road project (62km) fully complies with this national strategic orientation. The project will improve the land route between the airport at Lungi and the capital Freetown, and also enhance the development of regional trade between Port Loko district and the rest of the country and Guinea. The project covers: i) Construction works for the upgrading of 62km Lungi -Port Loko road
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