AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND
TRANSPORT SECTOR SUPPORT PROGRAMME PHASE 1: DEVELOPMENT OF THE BATCHENGA - NTUI – YOKO - LENA ROAD
COUNTRY: CAMEROON
PROJECT APPRAISAL REPORT
OITC
November 2014
Translated Document
TABLE OF CONTENTS
I. STRATEGIC GUIDELINES AND RATIONALE OF THE PROJECT ...... 1 1.1 Project Linkage with Country Strategy and Objectives...... 1 1.2 Rationale for Bank Involvement ...... 1 1.3 Donor Coordination ...... 2
II. PROJECT DESCRIPTION ...... 3 2.1. Project Objectives and Components ...... 3 2.2. Technical Solutions Adopted and Alternative Solutions Considered ...... 4 2.3. Type of Project ...... 5 2.4. Project Cost Estimate and Financing Mechanisms ...... 5 2.5. Project Area and Beneficiaries ...... 7 2.7. Bank Group Experience and Lessons Reflected in Project Design ...... 8
III. PROJECT FEASIBILITY ...... 10 3.1. Economic and Financial Performance ...... 10 3.2. Environmental and Social Impact ...... 11
IV. IMPLEMENTATION ...... 14 4.1 Implementation Arrangements ...... 14 4.2 Procurement Arrangements ...... 14 4.3 Financial Management and Disbursement Arrangements ...... 15 4.4 Monitoring ...... 16 4.5 Governance ...... 16 4.7. Risk Management ...... 18 4.8. Knowledge Development ...... 19
V. LEGAL INSTRUMENT ...... 19 5.1. Legal Instrument ...... 19 5.2. Conditions Associated with the Bank’s Intervention ...... 19 5.3. Compliance with ADF policies……………………………………………………….xx
VI. RECOMMENDATION...... 20
LIST OF TABLES AND GRAPHS N TITRE Page Table 1.1 – Donor Coordination ...... ……………..3 Table 2.1 - Project Components ...... 4 Table 2.2 - Envisaged Alternative Solutions and Causes for Rejection ...... 5 Table 2.3 - Estimated Costs per Component (in UA million)...... 6 Table 2.4 - Project Costs per Expenditure Category (in UA million) ...... 6 Table 2.5 - Project Financing Sources (in UA million) ...... 6 Table 2.6 - Summary of Project Component by Financing Source (in UA million) ...... 7 Table 2.7 - Expenditure Schedule by Financing Source (in UA million) ...... 7 Table 3.1 - Summary of Economic Analysis ...... 10 Table 3.2 - Accident Statistics ...... 13 Table 4.1 - Project Monitoring and Supervision ...... 15 Graph 1: Road Fund Revenue Trends ...... 17
ANNEX I: DESCRIPTION OF INSTITUTIONAL SUPPORT TO THE TRANSPORT SECTOR ANNEX II: RATIONALE AND DESCRIPTION OF THE "URBAN DEVELOPMENT SUPPORT" COMPONENT ANNEX III: SUPPORT TO WOMEN’S ECONOMIC EMPOWERMENT ANNEX IV: JUSTIFICATION OF THE LEVEL OF COUNTERPART FINANCING FOR THE PROGRAMME ANNEX V: COMPARATIVE SOCIO-ECONOMIC INDICATORS ANNEX VI: CAMEROON’S PORTFOLIO SITUATION AS OF 31 JULY 2012 ANNEX VII: MAIN RELATED PROJECTS FINANCED BY THE BANK AND OTHER DEVELOPMENT PARTNERS IN THE COUNTRY ANNEX VIII :MAP OF THE PROJECT AREA
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Currency Equivalents July 2014
UA 1 = USD 1.546 UA 1 = EUR1,55333 1.13 2 UA 1 = CFA. F742.451
Fiscal Year 1st January – 31st December
Weights and Measures
1 metric tonne = 2204 pounds 1 metre (m) = 3.28 feet 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.62 mile 1 hectare (ha) = 2.471 acres
ACRONYMS AND ABBREVIATIONS
ACFA : Accelerated Co-financing Facility for Africa AFD French Development Fund ADF : African Development Fund AfDB : African Development Bank AGTF Africa Growing Together Fund BDEAC : Development Bank of Central African States CAA : Autonomous Sinking Fund CEMAC : Central African Economic and Monetary Community CSEPR-BAD-BM : Bank and World Bank-funded Road Project Coordination and Monitoring Unit DGTI : Directorate General for Infrastructure Projects ECCAS : Economic Community of Central African States ERR : Economic Rate of Return EU : European Union GESP : Growth and Employment Strategy Paper INS : National Institute of Statistics JICA : Japanese International Cooperation Agency LUP : Land Use Plan MINEPAT : Ministry of the Economy, Planning and Regional Development MINMAP : Ministry of Public Contracts MINPROF : Ministry of Women’s Empowerment and the Family MINTP : Ministry of Public Works NPV : Net Present Value PA : Project Area PIP : Priority Investment Plan PMP : Priority Maintenance Plan PRSP : Poverty Reduction Strategy Paper RBCSP : Results-based Country Strategy Paper RF : Road Fund STD : Sexually Transmitted Diseases UA : Unit of Account VOC : Vehicle Operation Cost
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PROJECT INFORMATION SHEET
Client Information
Borrower : REPUBLIC OF CAMEROON
Project Title : TRANSPORT SECTOR SUPPORT PROGRAMME PHASE 1: DEVELOPMEN OF THE BATCHENGA - NTUI – YOKO - LENA ROAD
Project Area : CENTRE REGION OF CAMEROON
Executing Agency : MINISTRY OF PUBLIC WORKS THROUGH THE AfDB/WB ROAD PROJECTS COORDINATION AND IMPLEMENTATION UNIT (CSEPR-BAD/BM)
1. Financing Plan
Source Amount (UA Amount Amount Instrument million) (EUR (USD million) million) AfDB 136,096 154,061 210,404 Project loan ADF (country allocation) 12,456 14,100 19,257 Project loan BDEAC 53,878 60,990 83,365 Loan AFD 57,804 65,434 89,365 Loan JICA(ACFA) 35,280 39,937 54,543 Loan GOVERNMENT OF 42,469 58,001 Public Investment Budget 37,517 CAMEROON TOTAL 333,031 376,991 514,866
2. Key ADF Financial Information – Blend Country Loan Conditions Loan/Grant currency Unit of Account (UA) Type of interest 1% Interest rate margin Not applicable Service commission 0.75% per year of the disbursed loan amount not reimbursed Commitment fee 0.5% of the loan amount not disbursed 120 days after signature of the Loan Agreement Other costs Not applicable Maturity Up to 30 years Grace period Up to 5 years FRR, NPV (baseline scenario) Not Applicable ERR, NPV (base-case scenario): 21.2% and CFAF 118.12 billion
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3. Key ADB Financial Information
Loan currency: Euro (EUR) Type of loan interest: Floating (EURIBOR) Interest rate margin: 60 pb + financing margin1 of the Bank Commitment fee: Not applicable Other costs: Not applicable Maturity: Half-yearly Maturity: 20 years Grace period: 60 months NPV (baseline scenario): CFAF 118.12 billion ERR (base-case scenario): 21.2%
4. Timeframe – Main Milestones (expected) Activities (month, year) Approval of the concept note June 2014 Project approval November 2014 Effectiveness June 2015 Last disbursement December 2019 Completion December 2019 Last reimbursement (ADF loan) December 2063 Last reimbursement (AfDB loan) December 2035
1 The financing margin corresponds to the cost of the loan calculated twice a year.
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EXECUTIVE SUMMARY
General Overview of Programme
Keeping in view the transport sector objectives and assumptions defined in the Growth and Employment Strategy Paper (GESP) as well as the available productive sector (agriculture and rural development, mining, industry, urban development, trade, etc.) strategies, the Government requested Bank assistance to finance the Batschenga-Ntui-Yoko-Tibati- Ngaoundéré road project which covers a distance of approximately 598 km.
Considering the scope of the works covered by this request and the Bank’s future operations in the sector following the country’s graduation to "blend country" status, it was agreed that the Bank’s intervention will follow a programme approach through a Transport Sector Support Programme. Phase I of this road programme comprises the Batschenga-Ntui-Yoko- Lena road, which is approximately 248.6 km long. This road is a segment of national highways NH15 (Batschenga-Tibati) and NH6 (Tibati-Mambal), and provincial highway 15A (Mambal-Lewa). It runs through the Centre and Adamaoua Regions, specifically straddling the Mbam et Kim (Ntui) and Djérem (Tibati) Divisions. The development of this road is part of the Government’s efforts to channel produce from the Mbam-Sanaga agricultural basin to the main consumption centres of the Central African Economic and Monetary Community (CEMAC), through the Yaoundé-Ndjamena-Bangui, Yaoundé-Libreville-Bata and Yaoundé- Ouesso-Brazzaville road corridors. In general, the project contributes to the implementation of the GESP, especially regarding the operationalization of the Road Sector Development Master Plan in Cameroon.
Apart from serving as a national road, the project road is a strategic alternative route for national and/or international traffic between the northern and southern regions of Cameroon and to Chad. Given its geographical position, this road is the shortest link (gain of 200 km compared to alternative roads) between the abovementioned regions. Upgrading this road segment and reducing its length should therefore help to boost the competitiveness of the road, as compared to other corridors, and consolidate the status of the project area as a transit point.
The road works scheduled for this first phase will cover a distance of 248.6 km and also include related activities such as the development of rural roads, the rehabilitation of socio- economic infrastructure and the promotion of business activities for women. The project also addresses the institutional support needs of the transport and urban development sectors with a view to ensuring complementarity and diversification of the Bank's operations in Cameroon. The expected outcomes are the reduction of general transport costs in this region which has high agricultural potential.
The duration of project implementation is 4 years and the total project cost is estimated at UA 333.031 million. The Bank intervenes through the AfDB and ADF windows to provide UA 136.096 million and UA 12.456 million respectively. The other co-financiers are the French Development Agency (UA 57.804 million) which provides parallel financing, as well as the Development Bank of Central African States (UA 53.878 million), JICA (ACFA) for UA 35.280 million and the Republic of Cameroon (UA 37.517 million) in joint financing. The main beneficiaries of the project are the 4,400,000 inhabitants of the Centre and Adamaoua Regions of Cameroon. It will also indirectly benefit comunities located in the western part of Chad, given the regional character of the project. The beneficiary communities of the project
iv will contribute to the construction, management and maintenance of certain related infrastructure. Needs Assessment
The development of areas with great potential in the Centre and Adamaoua Regions is undermined by inaccessibility, especially during the eight-month long rainy season when these areas are practically cut off from the rest of the country. The highly degraded state of this road as well as the heavy traffic it receives have led to a situation where all the maintenance operations conducted so far have not yielded an acceptable and regular level of service. Since all maintenance thresholds have been exceeded along this road, its development and/or rehabilitation has become urgent and remains the only solution possible.
From the international standpoint, Chad is constantly looking for alternative routes to the coast. Given its geographical position, the project road, once developed and commissioned, will solve that problem by serving as a relevant alternative for Chad, guaranteeing access to Yaounde, Douala and especially the autonomous port of Douala (PAD) thanks to reduced transport costs, when compared to competing routes, especially the Ngoundere-Bertoua- Yaounde-Douala road.
Bank’s Value-added
The Bank’s value-added comes from the experience gained in this sector over the last 15 years. Indeed, the Bank devoted a significant amount of resources to infrastructure financing in Cameroon. It financed the development of the Bamenda-Batibo, Bachuo Akagbe-Mamfé and Melong-Dschang road segments under the road programme (implemented from 1991 to 2002), followed by the Numba-Bachuo-Ajkagbé roads (2006-2012), the Douala-Bangui- Ndjamena corridor (2009-2013), the Bamenda-Mamfé-Enugu (Cameroun-Nigeria) corridor, the Ouesso-Sangmelima Corridor (Cameroun-Congo) and the ongoing Kumba-Mamfé road project. With this new operation, the Bank will build on its achievements from previous projects with a view to meeting the objectives set in the country’s infrastructure development strategy. Lastly, this project will support business activities for women through technical assistance from UN Women.
Knowledge Management
The project will provide an opportunity to improve knowledge on national infrastructure. Indeed, to learn lessons from this project, a monitoring and evaluation mechanism will be established by the executing organ with the support of the National Institute of Statistics (INS) which is responsible for monitoring project and GESP indicators. Indeed, the establishment of key impact indicators prior to project commencement and impact analysis at project completion will help to produce useful information on project outcomes and effects. Besides, through UN Women, the project will produce a methodological guide on gender mainstreaming in the road sector. The lessons, experiences and knowledge that will be garnered from project implementation will be managed through a data base in MINTP and published in annual reports and on the Bank’s website. This database will indeed facilitate the management of all knowledge accumulated during the implementation of project activities.
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RESULTS-BASED LOGICAL FRAMEWORK OF THE PROJECT REPUBLIC OF CAMEROON Country and project name: Cameroon: Transport Sector Support Programme: Phase 1: Development of the Batschenga - Ntui – Yoko - Lena Road Specific objectives: (i) Improve conditions for transport and movement of goods and persons between Batchenga-Ntui-Yoko-Lena with a view to developing the agricultural potential of the region; and (ii) Reinforce transport sector governance.
Performance Indicators Results Chain Means of Verification Risks / Mitigating Measures Indicator (including ISCs) Baseline Situation Target Contribute to the expansion and modernization of Volume of trade between the Centre In 2013: 47% In 2020: 52% Statistical reports
Cameroon's road network with a view to supporting and Adamaoua Regions and the rest published by the economic diversification of the country Government of Cameroon, INS, Impact Road density 2014: 32% 2020: 37% Construction sector directory Outcome 1: Vehicle operation costs (VOC). In 2014, the VOC is: (i) CFAF In 2020, the VOC would be: (i) Statistics published by Risks: (i) non-respect of Improved accessibility and mobility in the PA 349 per km for a light vehicle CFAF 196 per km for a light vehicle Cameroon’s Ministry of commitments regarding the and (ii) CFAF 2.065 per km for and (ii) CFAF 1.732 per km for a Public Works maximum axle load and gross nd a heavy vehicle. heavy vehicle. (Construction Sector weight; and (ii) loss of 2 Travel duration in the rainy season In 2014, the average travel In 2020, the average travel duration Directory) generation status by the RF. duration was 12 hours. was 3 hours. Mitigating measures: (i) Monitoring and Government commitment to evaluation reports of the apply regional guidelines on Rural access index 15% in 2014 20% in 2020
National Institute of maximum axle load; (ii) Statistics. Permanent ongoing dialogue with the authorities and targeted Outcome 2: Number of jobs created 2014 : 0 2020 : 25,000 man-months, Statistics of the Ministry institutional support with various Living conditions of PA communities improved including 30% women of Agriculture partners; Steady increase in Road Average income per household 2014 : CFAF 18,529 2020 : CFAF 22,234 Fund revenue which currently Road Fund reports covers close to 80% of road Statistics from the maintenance needs; Bank support Outcome 3: Increased tonnage for the main Rate of increase of main agricultural In 2020: 290,000 T (20%) Ministry of Agriculture through an update of the Road
agricultural products products Master Plan which will build MINTP capacity in the planning Outcome 4: Sustainability framework is improved Implementation rate of road 2013 : 40% 2020 : 60% and programming of road maintenance contracts maintenance.
Output 1: Road works Progress reports Risks: (i) slowness and lack of In 2014: In 2020: of implementing transparency in the procurement
Road segments constructed Length of the road segment 203 km of earth road in poor 203 km of constructed and paved agencies process; (ii) increase in the cost
state roads Control office of works; (iii) early degradation A bridge constructed in Natchigal used to cross the reports of the road due to lack of Sanaga River. Bridge over the Sanaga River at Nothing (occasional crossings A bridge of 400 metre-long Project maintenance; (iv) no Outputs Natchigal by ferry and rowboat) constructed supervision maintenance of the socio- Length of urban road network constructed Road network in poor state reports economic infrastructure Length of the road networks 15 kilometres of road constructed in Project Batchenga, Ntui and Yoko
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Output 2: Ancillary facilities Km of roads developed; km of urban In 2014: 0 In 2020: 120 km of developed completion constructed. roads constructed; number of youth roads; 15 km of urban roads reports. Ancillary facilities constructed multipurpose centres built; number of constructed in Batschenga, Ntui et Mitigating measures: (i) developed health centres built; number Yoko; 1 youth multipurpose centre Broadening of the competition of storage warehouses built; and built; 5 health centres developed; 10 by adjusting the size of works length of school fences built. storage warehouses built; 15 contracts and major reforms classrooms built; 10 borehols implemented by the Government constructed; and 900 m of school through the creation of a fences built Ministry in charge of Output 3: Promotion of gender and acceleration of Support to women´s business In 2014: 0 In 2019: 100 farming and Project Government contracts; (ii) women´s empowerment along the Batchenga-Ntui- initiatives stockbreeding kits; Support to 10 supervision Project costs are aligned on those Yoko-Lena Road Project women´s cooperatives/ reports of a similar project being organisations to for acquisition of Project executed in the same area; (iii) landed property and management of completion construction of weighing stations of cooperatives and community reports and the axle weight control facilities; construction of 4 market Implementation system existing in Cameroon; sheds and 2 exhibition halls; 8 report from UN (iv) infrastructure management multipurpose units for agricultural; Women capacity building for women's 7 community drying areas; Support Statistics from organisations. to 10 cooperatives/organisations for MINPROF access to financial products; capacity building for 10 women´s organisations Outcome 4: Support to urban development Support at the national level In 2014: No National Urban In 2017: Report of the National Development Programme of Urban Development Programme of Progress reports of Cameroon, Cameroon, executing agencies Control office In 2014: No town planning In 2017: Feasibility report on the reports agencies, establishment of 2 town planning Project supervision agencies reports Project completion In 2014: Urban planning In 2017: Report on the updating of reports Targeted operations in the project documents are obsolete urban planning documents, Statistics from towns In 2017: Support for the MINDHU In 2014: No support for the reorganisation and building of the reorganisation and building of technical and institutional capacity Monitoring and the technical and institutional of munipal services evaluation from capacities of munipal services the INS
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Outcome 5: Institutional support to the transport Development and preservation of En 2014: No priorirty In 2017, Report on the identification Progress reports of sector infrastructure networks infrastructure development and estimation of the costs of the executing agencies programmes, priority transport infrastructure Control office development programme, reports Project supervision In 2017: Diagnostic report of the reports In 2014: A network of weighing stations and the axle Project completion weighing stations (at least 22) weight control system in Cameroon; reports and an axle weight control system which are both Monitoring and inefficient. In 2016: Report on the evaluation from organisational and skills audit of the the INS ADB/WB unit In 2014: The organisational structure of the AfDB-WB unit is ill-adapted to the volume of work Outcome 6: Support to environmental protection Identification and better management In 2014: No strategic In 2016: Strategic environmental Progress reports of of the long-term environmental and environmental and social and social assessment of the executing agencies social impacts of the programme assessment of the programme programme available Report of validation of In 2016: The Mpem et Djim workshops In 2014: No Mpem et Djim National Park development plan is National Park development validated plan Output 7: Project Management Audit reports 2014 : No report 2018 : Progress reports of executing agencies Support to the Project Monitoring and Monitoring and evaluation At least 4 audit reports Coordination Unit; reports At least 3 monitoring and Control office evaluation reports reports Monitoring and evaluation of socio-economic Technical audit reports and environamental impacts; 1 technical audit report Project supervision Accounting and financial audit of the project; produced reports Project completion Technical project audit.
reports.
A
K ey
cti Components Resources ies vit
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A. Road Works Components In UA million B. Ancillary Facilities Road Works (Component A) 271,926 C. Support to urban development D. Institutional support to the transport sector Ancillary Facilities (Component B) 10,083 E. Project management. Support to urban development (Component C) 2,268 Institutional support to the transport sector (Component D) 1,253 Project management (Component E) 1,183 Baseline costs 286,713 Physical contingencies 28,671 Financial contingencies 17,647 Total project cost 333,031
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PROJECT IMPLEMENTATION SCHEDULE
REPORT AND RECOMMENDATION OF BANK GROUP MANAGEMENT TO THE BOARDS OF DIRECTORS CONCERNING A PROPOSAL TO AWARD AN ADF LOAN OF UA 12.456 MILLION AND AN AFDB LOAN OF EURO 154,061 MILLION TO THE REPUBLIC OF CAMEROON TO FINANCE THE TRANSPORT SECTOR SUPPORT PROGRAMME: PHASE 1: DEVELOPMENT OF THE BATCHENGA - NTUI – YOKO-LENA ROAD
I. STRATEGIC GUIDELINES AND RATIONALE OF THE PROJECT
1.1 Project Linkage with Country Strategy and Objectives
1.1.1. Within the framework of consolidation of its national road network strategy, the Government of Cameroon requested Bank assistance to finance the development of the Batschenga-Ntui-Yoko-Tibati-Ngaoundéré road segment of approximately 598 km. This road segment is a major North-South trade route, linking the capital city of Yaounde and the Centre and South Regions to the Adamaoua, North and Far North Regions; providing access, directly or through a network of feeder roads, to several towns, localities and villages. Developing this road will open a transport link between agricultural production basins and consumption areas, thereby developing agricultural potential. Consequently, it will boost the structural transformation of the Cameroonian economy. Apart from providing access nationally, the project road is one of the essential transport links on Cameroonian territory which facilitates inter-State transport in Central Africa. It serves as a new alternative transit route to Chad, a landlocked country in the region which gets its supplies mainly through the Autonomous Port of Douala (PAD). This road segment is the shortest link (at least 200 km) between the southern and northern parts of Cameroon, and consequently Chad.
1.1.2. However, given the scope of the works covered by this request and the Bank’s future operations in the sector following Cameroon’s graduation to "blend country" status, it was agreed that the Bank’s intervention should follow a programme approach based on a Transport Sector Support Programme. This intervention will be in several phases the first of which will cover the Batschenga-Ntui-Yoko-Lena segment of the Batschenga-Ntui-Yoko- Tibati-Ngaoundéré road, which is an essential component of the Government’s road programme.
1.1.3. Implementation of this programme in each of the transport sub-sectors will build on the following strategic thrusts: (i) Improvement of the sustainability framework through infrastructure repair and maintenance by the public sector and the private sector, if need be; (ii) rehabilitation of the existing infrastructure base; (iii) development of a national infrastructure backbone through the execution of new major projects and new development programmes that include funding through public-private partnerships; (iv) consolidation of sectoral governance and of the institutional framework mainly through improvement of the regulatory framework; (v) reinforcement of the planning-programming-budgeting-monitoring and evaluation chain; (vi) development of standardization and quality; (vii) strengthening of managerial capacity and performance in the sector through reorganisation and capacity building; and lastly (viii) human resource development.
1.2 Rationale for Bank Involvement
1.2.1. The Bank’s involvement is justified by the degraded state of the road which leads to prolonged traffic interruptions and excessive average transport costs. In spite of the strategic position of the project road in ensuring mobility as well as regional, national and international travel, the demand for goods transport is marginal along the entire itinerary, compared to
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competing or similar roads. The poor state of the road increases travel duration, limits access to the project area and significantly slows down economic development.
1.2.2. From the regional standpoint, Chad is constantly looking for alternative routes to the coast. Given its geographical position, the project road, once developed and commissioned, will solve that problem by serving as a relevant alternative for Chad, guaranteeing access to Yaounde, Douala and especially the autonomous port of Douala (PAD) owing to reduced transport costs on this alternative road, compared to competing routes, especially the Ngoundere-Bertoua-Yaounde-Douala road. This is consistent with the promotion of regional integration, which is one of the operational thrusts of the Bank´s long-term strategy (LTS).
1.2.3. Besides, the Bank´s intervention under this project is in line with the Regional Integration Strategy Papers (RISP), Cameroon's Country Strategy Paper for 2010-2014 (Pillar II on infrastructure development) and the country’s Growth and Employment Strategy Paper (GESP) for 2010-2020 (Pillar I on infrastructure development). Lastly, this project which is also in line with the Bank’s ten-year strategy, is consistent with the "Cameroon Vision 2035" document and in keeping with the policy guidelines of Cameroon´s transport sector strategy adopted in 2010, which highlights the importance of road infrastructure development in terms of its contribution to increased access to rural areas, poverty reduction, economic growth, improved access to basic social services and regional integration.
1.2.4. This project also addresses the issue of greeen growth and inclusive development through the implementation of a major economic and social development project while preserving the natural resources of the project area mainly through: (i) scheduled socio- economic developments such as urban road networks; (ii) rural roads; (iii) specific activities for women; (iv) strategic environmental and social assessment of the programme; (vi) support in the preparation of the Mpem et Djim National Park development plan to ensure better management of long-term environmental impacts of phase I of the programme. All these activities will be executed in accordance with the Bank's requirements for environmental and social preservation.
1.2.5. Lastly, over the last fifteen years, the Bank has been one of the most active donors in Cameroon’s transport sector. The current project is a continuation of the Bank’s previous financing operations such as: (i) development of the Bamenda-Batibo, Bachuo Akagbe- Mamfé and Melong-Dschang road segments under the road programme (1991-2002), and the Numba-Bachuo-Akagbé roads (2006-2012), the ongoing Bamenda-Mamfé-Ekok-Nigerian border road corridor project and the transport facilitation programme between the Douala- Bangui-Ndjamena corridors (2009-2013) and the Kumba-Mamfé road project approved in November 2012. With this new operation, the Bank will build on its achievements from previous projects with a view to attaining the objectives set in the country’s infrastructure development strategy.
1.3 Donor Coordination
1.3.1. Aid coordination and cooperation with donors at the national level is the responsibility of the Ministry of the Economy, Planning and Regional Development (MINEPAT).
1.3.2. This ministry comprises the Directorate for Regional Integration (DIR) which is the Bank’s focal point in the area of economic and technical cooperation. As regards Technical and Financial Partners, the Multi-partner Committee (MPC) for GESP monitoring, set up in June 2001, is a platform for dialogue and exchange on all key development issues in 2
Cameroon. To support this structure, various technical and thematic sub-committees devoted to the alignment and harmonization agenda are operational. The Bank sits on all these thematic and sectoral sub-committees and, together with the World Bank, participates in the IMF’s review missions to Cameroon. From 2008 to 2014 when it passed that responsibility on to the European Union, the Bank was the Lead Donor for the MPC’s Sectoral Committee for Public Finance. With regard to the transport sector in particular, dialogue is conducted within a sub-committee set up since 2007 under the pilot transport facilitation programme in the CEMAC area. It includes the EU (lead donor), WB, AFD and the Bank and meets at least once every quarter at the invitation of the lead donor. These meetings regularly include discussions with the Government on sector problems. Given the share of the transport sector within its portfolio (65%) and reinforcement of the expertise at the country Office, it was agreed with the TFPs and the Government that the Bank should assume the role of lead donor for the transport sector.
1.3.3. During the project identification, preparation and appraisal missions, the Bank team had discussions with these key TFPs. These discussions led to a convergence of views on, inter alia, the project components and road maintenance financing. All these partners recognized the importance and relevance of this project which is perfectly consistent with the operations of other partners.
Table 1.1 Donor Coordination Magnitude Sector or Sub-sector* GDP Exports Labour Transport 6.47 % 11.87 % 14.1 %
Stakeholders – Annual Public Expenditure (average 2005-2012)* Government (in USD million) Donors Amount (in USD million) [%] 580 ADF 84.33 32.80% AFD 42.2 16.41% European Union 38.99 15.17% JICA 10 3.89% WB 81.57 31.73% TOTAL 257.09 100.00% Aid Coordination Level
Yes, the MPC was set up in 2008 Existence of thematic working groups Existence of SWAP or global sector programme YES AfDB role in aid coordination [L] L: Lead Donor; M: member (non-lead donor): Lead Donor for Public Finance from 2009-2013 Sources: MINFI, Cameroon 2011 and 2012, TOFE 2002 to 2012 and the Economic and Cameroon’s Financial Report from 2005 to 2012, INS, MINTP
II. PROJECT DESCRIPTION
2.1. Project Objectives and Components
2.1.1. The project’s overall objective is to contribute to the expansion and modernization of Cameroon's road network with a view to supporting economic diversification.
2.1.2. The project’s specific objectives are: (i) to improve conditions for transport and movement of goods and persons between Batchenga-Ntui-Yoko-Lena with a view to developing and enhancing the potential of the major Mbam-Sanaga agricultural basin; and (ii) to strengthen transport sector governance.
2.1.3. To achieve these objectives, project actions were grouped into five components summed up in the table below and presented in detail in Annex 1 of the report:
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Table 2.1 Project Components No. Name of Component Description
A ROAD WORKS A.1- Development of approximately 248.6 km of road between Batschenga, Ntui, Yoko and Lena, with a 7 metre-wide road surface paved with 15 centimetre-thick bituminous concrete + Construction of a 400 metre- UA 219.708 million long twin-girder bridge over River Sanaga +15 km of urban roads in Batchenga, Ntui, Yoko and Lena; A.2 – Actions and measures for mitigating negative impact on the environment; A.3 – Awareness-raising on environmental protection, road safety and the prevention of AIDS, STDs, malaria and onchocerciasis; A.4 – Road works control and supervision. B RELATED WORKS B.1 – Development of 120 km of rural roads; B.2 – Rehabilitation of socio-economic infrastructure (storage warehouses, health centres, classrooms, UA 10.083 million safety fences around schools, youth promotion centres); B.3 – Support to women’s specific business activities; B.4 - Control and supervision of related works. C SUPPORT TO URBAN C.1 – Formulation of the national urban development programme; DEVELOPMENT C.2 – Feasibility study on the establishment of town planning agencies; C.3 – Preparation/Update of town planning documents (LUP + PIP + PMP); UA 2.400 million C.4 – Support for the reorganisation and building of the technical and institutional capacity of municipal services. D INSTITUTIONAL D.1 – Preparation of a priority transport infrastructure development programme in Cameroon that is SUPPORT TO THE consistent with Vision 2035; TRANSPORT SECTOR D.2 – Support to road maintenance mechanisms through a diagnosis of weighing stations and the axle weight control system existing in Cameroon; UA 1.320 million D.3 - Organisational and skills audit of the ADB/WB Unit; D.4 - Support to environmental protection. E PROJECT E.1 – Support to operation of the Project Monitoring and Coordination Unit; MANAGEMENT E.2 – Monitoring and evaluation of socio-economic and environmental impacts; E.3 - Accounting and financial audit of the project; UA 1.183 million E.4 - Technical audit of the project.
2.2. Technical Solutions Adopted and Alternatives Explored
2.2.1. The technical studies conducted led to the adoption of a category R80 (reference speed of 80 km/h) and R60 (reference speed of 60 km/h) road, depending on the relief of the project area. The cross-sectional profile of the road is a follows: (i) in open country: a 10 metre-wide platform composed of a pavement with two lanes (each 3.5-metres wide) and two road shoulders (each 1.5 metres wide); (ii) in settlement areas: a variable platform of 15 metres minimum, comprising a pavement with two lanes (each 3.5 metres wide), 2 road shoulders (each 2 metres wide, 2 lateral culverts and 2 sidewalks (each 2 metres wide); (iii) the laying of insulators for the passage of optical fibre cables.
2.2.2. The structure adopted for the road comprises an improved subgrade that varies in thickness depending on the zone, a sub-base course of 30 cm in type-1 laterite gravel, a base course of 20 cm in untreated sand-gravel aggregate and a surface course of 5 cm in semi- coarse asphalt concrete. Other technical solutions were considered and discarded, especially regarding the road surface structure. They are outlined in the table below:
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Table 2.2 Alternatives Explored and Reasons for their Rejection Name of Alternative Brief Description Reason for Rejection Base course in soil concrete and Platform of 10 metres, comprising a pavement with 2 Quality risks related to non-mastery of the paving with semi-coarse asphalt lanes (each 3.5 metres wide) and a 1.5 metre road techniques of soil concrete application and concrete shoulder on each side, with a base course in soil the behaviour of the materials over time. concrete and asphalted with bituminous concrete. Base course in bitumen sand- Platform of 10 metres, comprising a pavement with 2 Technically the most interesting solution gravel aggregate and paving with lanes (each 3.5 metres wide) and a 1.5 metre road but generates very high construction costs. semi-coarse asphalt concrete shoulder on each side, with a base course in bitumen sand-gravel aggregate and asphalted with bituminous concrete. Base course in soil cement and Platform of 10 metres, comprising a pavement with 2 Technically viable solution but generates paving with semi-coarse asphalt lanes (each 3.5 metres wide) and a 1.5 metre road high construction costs. concrete shoulder on each side, with a base course in soil cement and asphalted with bituminous concrete. Base course in untreated sand- Platform of 10 metres, comprising a pavement with 2 The most economically attractive solution gravel aggregate and with a lanes (each 3.5 metres wide) and a 1.5 metre road but has limited sustainability due to the double-layer surface course shoulder on each side, with a base course in untreated heavy traffic expected. sand-gravel aggregate and a double-layer surface course.
2.2.3. For the bridge over the Sanaga River, a mixed steel-concrete structure was adopted after a multi-criteria analysis of 3 other solutions, namely a double-girder bridge with a concrete-steel composite deck in the style of a "PSI-OM" [overpass or underpass with a mixed concrete-steel framework]; a box-girder bridge in pre-stressed concrete constructed through successive corbelling at constant height; and a box-girder bridge in pre-stressed concrete constructed through successive corbelling at variable height. The cross-sectional profile adopted provides for: a 10 metre-wide deck with two lanes (each 3.75 metres wide) and a 1.25 metre-wide sidewalk on each side.
2.3. Type of Project
2.3.1. The AfDB loan will contribute to the financing of the road works while the ADF loan will be used to finance related works and institutional support. The investments to be financed have been specifically defined. Consequently, lending was deemed to be the appropriate instrument for the Bank’s intervention in the project. All donor interventions in Cameroon’s private sector are implemented through this type of operation (investment project).
2.4. Estimated Project Costs and Financing Arrangements
The total project cost, net of taxes and customs duties, is UA 333.031 million (or CFAF 247.260 billion. The provision for physical contingencies is 10% of the base cost. The provision for price increase is 5.59% of the base cost plus physical contingencies. This cost was established based on the F.E.E.D of November 2013 and similar recent or ongoing contracts. The summary of estimated costs by project component is presented in the table below:
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Table 2.3 Summary of the Estimated Costs per Component for the Whole Project
COMPONENTS CFAF billion UA million F.E. L.C. Total L.C. F.E. Total
1. Road works 157,921 43,971 201,892 212,703 59,224 271,926 2. Ancillary works 4,492 2,994 7,486 6,050 4,033 10,083 3. Support to urban development 1,347 0,337 1,684 1,814 0,454 2,268 Institutional support to the transport 4 0,623 0,267 0,890 0,877 0,376 1,253 sector 5. Project Management 0,480 0,399 0,879 0,646 0,537 1,183 Base Cost 164,863 47,968 212,831 222,090 64,623 286,713 Physical contingencies 16,489 4,798 21,287 22,209 6,462 28,671 Financial contingencies 10,149 2,953 13,102 13,670 3,978 17,647 Total costs NTCD 191,529 55,731 247,260 257,969 75,063 333,031
2.4.1. The summary of estimated costs by project component is presented in Table 2.4 below:
Table 2.4 Summary of Costs per Expenditure Category for the Whole Project EXPENDITURE CFAF billion UA million CATEGORIES F.E. L.C. Total F.E. L.C. Total 1. Works 156,691 42,201 201,163 211,046 59,898 270,944 2. Services 8,200 3,508 11,708 11,044 4,725 15,769 Base Cost 164,891 45,708 212,871 222,090 64,623 286,713 Physical contingencies 16,489 4,798 21,287 22,209 6,462 28,671 Financial contingencies 10,149 2,953 13,102 13,670 3,978 17,647 Total costs NTCD 191,529 55,731 247,260 257,969 75,063 333,031
Financing Arrangements
2.4.2. The project will be financed by the Bank Group, BDEAC, AFD, JICA (ACFA) and national counterpart funds, in accordance with the scheduled financing plan below. The Bank Group will intervene through an ADF loan of UA 12.456 million under ADF13 and an AfDB loan of UA 136.096 million or 44.61% of the project cost.The other co-financiers are involved as follows: the French Development Agency (UA 57.804 million) in parallel funding that is 17.36% of the project cost, the Development Bank of Central African States (UA 53.878 million), or 16.18%, JICA (ACFA) for UA 35.280 million or 10.59% in joint funding. The national counterpart was estimated at UA 35.517 million or CFAF 27.85 billion, or 11.27% of the total project cost. The criteria set out in the Policy on expenditure eligible for Bank Group funding to justify this level of counterpart are detailed in Annex IV.
Table 2.5:Summary of Project by Financing Source Financing UA Million Euro Million USD Million CFAF Billion Percentage Source F.E. L.C. Total F.E. L.C. Total F.E. L.C. Total F.E. L.C. Total
BAD 108,200 27,897 136,096 122,482 31,579 154,061 167,168 43,101 210,269 80,333 20,712 101,045 40,87% FAD 9,144 3,312 12,456 10,351 3,750 14,101 14,128 5,118 19,246 6,789 2,460 9,249 3,74% BDEAC 39,975 13,902 53,878 45,252 15,737 60,989 61,762 21,479 83,241 29,680 10,322 40,001 16,18% AFD 45,738 12,066 57,804 51,775 13,659 65,434 70,665 18,642 89,307 33,958 8,958 42,917 17,36% JICA (ACFA) 28,224 7,056 35,280 31,949 7,987 39,937 43,606 10,901 54,507 20,955 5,239 26,193 10,59% CAMEROON 26,695 10,823 37,517 30,218 12,251 42,470 41,243 16,721 57,964 19,819 8,035 27,855 11,27% Total 257,975 75,056 333,031 292,028 84,964 376,992 398,572 115,962 514,534 191,534 55,726 247,260 100,00%
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Table 2.6 Summary of Project Components by Financing Source JICA Composantes AfDB ADF BDEAC AFD Government TOTAL 1 Road works 117,168 0,000 35,670 47,832 30,373 30,263 261,307 2 Ancillary works 0,000 0,000 7,659 0,000 0,000 2,036 9,695 Road works inspection and 0,000 3 supervision 0,000 6,128 2,209 1,932 0,000 10,270 Ancillary works inspection and 0,000 4 supervision 0,000 0,000 0,388 0,000 0,000 0,388 Public sensitization on STIs, road 0,000 5 safety and environmental protection 0,000 0,350 0,000 0,000 0,000 0,350 7 Support to urban development 0,000 2,268 0,000 0,000 0,000 0,000 2,268 Institutional support to transport 0,000 6 sector 0,000 1,253 0,000 0,000 0,000 1,253 8 Project Management 0,000 0,725 0,4579 0,000 0,000 0,000 1,183 Total base costs 117,168 10,724 46,384 49,764 30,373 32,299 286,713 Physical contingencies 11,717 1,072 4,638 4,976 3,037 3,230 28,671 Financial contingencies 7,212 0,660 2,855 3,063 1,869 1,988 17,647 Total costs NTCD 136,096 12,457 53,878 57,804 35,280 37,517 333,031
2.4.3. The expenditure schedule (in UA million) by financing source is presented in the table below: Table 2.7 Expenditure Schedule by Financing Source (in UA million)
FINANCING SOURCE 2015 2016 2017 2018 Total AfDB 23,434 36,322 41,009 16,403 117,168 ADF 2,729 4,643 2,380 0,972 10,724 BDEAC 9,300 14,352 16,189 6,544 46,385 AFD 9,953 15,427 17,417 6,967 49,764 JICA (ACFA) 6,075 9,416 10,631 4,252 30,373 Cameroon Gov’t 8,910 9,063 10,232 4,093 32,299 Base cost NTCD 60,401 89,222 97,858 39,23 286,713 % of base cost 21,07% 31,12% 34,13% 13,68% 100%
2.5. Project Area and Beneficiaries
2.5.1. The project area (PA) covers 3 subdivisions, namely Batschenga, Ntui and Yoko. These subdivisions are located in the Mbam et Kim and Lékié Divisions of the Centre Region. The direct beneficiaries of the project in this area are a population of 109,540 inhabitants of which 50.37% are men. More than half of this population (50.46%) lives in rural areas. The expanded project area indirectly straddles two regions, namely the Centre and Adamaoua Regions which cover a total surface area of 132 654 km2, and have a total population of 4,811,284 inhabitants (23% of the national population) living essentially in rural areas 43% of whom are women. The PA is composed of several agricultural basins. The demographic profile of the project area shows that the majority of its population is young (41% of the inhabitants are under the age of 14 years and 49% is aged 15-49 years old). The average size of households is 4.3 compared to the national average of 4.4.
2.5.2. The PA is characterized by a network of earth roads at various stages of mild-to- advanced degradation by gully erosion, aggregate protrusions, potholes, mud holes and rutting. Because of this visible structural degradation on this segment, this area is alomost totally inaccessible, thus curbing the mobility of the local population and the sale of farm produce. This situation has a considerable impact on the development of the region’s agricultural potential and accounts for the level of poverty among farmers due to poor sales of their produce which cannot be transported. The key crops (16% to 20%) grown in the area are 7
mostly food crops (plantain, cassava, maize, yam and tomato) and cash crops (cocoa). It has been noticed that women are mainly engaged in foodcrop farming. This area is not only known for its farming, it is also famous for its livestock, especially in the Adamawa Region. The construction of this road connecting the North and South will open and facilitate the transportation of meat and milk trade from the Adamawa Region to the south of the country. Moreover, there are also small-scale processing units that enable households to process oil palm, coconuts.
2.5.3. The development of the project road should also have an impact on the distribution of transport demand in the region. This will mainly affect "passengers" and "goods" nationally, especially in the North and Far North Regions which have economic ties with the Centre Region, especially Yaounde, and the Littoral Region, particularly Douala. The effect will be: (i) the development of local, national and regional traffic to neighbouring countries; (ii) the opening of an alternative link between South and North Cameroon; and (iii) the opening up of access to the farming basins of both regions.
2.6. Participatory Approach for Project Identification, Design and Implementation, including the Active Participation of the Private Sector
2.6.1. During the entire project cycle, the participatory approach was adopted at all stages. The various stakeholders (beneficiary communities, local governement bodies, local and central services, civil society organisations, youth, women, technical and financial partners) were consulted during the conduct of detailed technical studies and the project preparation mission. Feedback sessions were organised at different levels to share field results.
2.6.2. The consultations with these stakeholders were mainly aimed at: (i) presenting the road construction project; (ii) identifying the direct beneficiaries and determining the benefits that accrue to them; (iii) deterniming, in consultation with NGOs, women's associations, village communities in the project area as well as other stakeholders, the ancillary infrastructure that can be incorporated into the project. The community’s expressed needs and expectations regarding this project concern the rehabilitation of rural roads and primary schools, the construction of a youth centre and the promotion of women’s empowerment. The participatory approach will be maintained during project implementation, especially during meetings to coordinate project activities and during monitoring and evaluation of the project’s socio-economic impact and monitoring of the implementation of environmental impact mitigation measures.
2.7. Bank Group Experience and Lessons Reflected in Project Design 2.7.1. Since 1972 when its started its operations in Cameroon, the Bank has participated in the financing of 26 transport sector operations (including multinational projects) for a total of UA 772.88 million, representing 19.84% of all Bank operations in the country. Projects financed by the Bank contributed significantly to improving mobility and access to basic services for a huge segment of the population and to the promotion of regional integration. The ongoing projects in the transport sector are: (i) the Kumba-Mamfe Road Development Project; (ii) the Ketta-Djoum Road and Brazzaville-Yaoundé Corridor Transport Facilitation Project; (iii) the Bamenda-Mamfe-Ekok-Enugu Programme; and (iv) the Batchenga-Ntui- Yoko-Tibati- Ngaoundéré Road Study. The projects implemented have opened up access to many regions, reduced road transport costs, improved the level of service, improved access to socio-economic infrastructure in project areas and boosted trade with neighbouring countries.
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2.7.2. The performance of transport sector projects is deemed satisfactory, owing to the progress noted in road infrastructure works and the fact that all road programmes have been coordinated since 2001 by a single AfDB-World Bank Unit whose capacity is regularly built.
2.7.3. The main generic challenges and issues affecting project implementation include: (i) procedural bottlenecks in the procurement of goods, services and works; (ii) late mobilization of national counterpart funds; (iii) establishment of unrealistic project implementation schedules; (iv) cost overruns; (v) poor quality of pre-project studies; (vi) financing of compensations; and (vii) the high number of conditionalities attached to loans.
2.7.4. This proposed project takes into account the lessons drawn from the execution of previous projects in the country and contributes to enhance the positive and cumulative effects and to also to address the shortcomings noted, especially regarding the quality of pre-project studies, delays in the launching works, cost overruns, financing of compensation, formulation of conditionalities and procurements. Hence, the following measures were taken: (i) conduct of detailed technical studies and establishment of a realistic implementation schedule by considering the institutional constraints at each stage; (ii) limitation of the number and explicit definition of loan conditions in order to avoid long delays at commencement; (iii) close monitoring of the budgeting of national counterpart funds; (iv) recourse to Advanced Procurement Actions (APA) in order to reduce procurement timeframes. For the management of compensations, the Ministry of Public Works (MINTP) is preparing a procedures manual for environmental governance during road project execution as well as a procedures manual for expropriations and resettlements as a result of road projects. Through this project, the Bank will assist the MINTP to finalize and disseminate these manuals.
2.8. Key Performance Indicators
2.8.1. The main performance indicators and results expected from the project are those which feature in the logical framework matrix with deadlines. The core sector indicators (CSI) on which the project will focus are: (i) the volume of trade between the Centre and Adamaoua Regions and the rest of the country; (ii) road density expressed in km/km² which is the ratio of the length of the entire national road network to the national land surface area; (ii) the rural access index which is the percentage of persons with access to a major highway, at less than 2 km from their homes, throughout the year; (iii) vehicle operation costs; (iv) reduction of the travel duration between Batchenga, Ntui, Yoko and Lena; (iv) number of jobs created; (v) average income per household; (vi) implementation rate of road maintenance contracts; and (vii) institutional support to the transport sector and urban development.
2.8.2. The responsibility of data collection and analysis is entrusted to MINTP which will be supported by the National Institute of Statistics (INS) of Cameroon. The INS, which is familiar with this type of exercise, will: (i) establish the baseline situation for these indicators at project commencement; (ii) assess impact at project completion; and (iii) carry on with the assessment, after the road has been commissioned, through a framework contract with MINTP.
2.8.3. To carry out these activities within the prescribed deadlines, and apart from the result indicators, performance execution indicators were established in relation to the Bank's institutional performance indicators. These are mainly: (i) effectiveness deadline; (ii) deadline for fulfilment of conditions precedent to first disbursement of funds; (ii) procurement deadlines; (iv) average indicator of implementation progress (IP); and (iv) changes in the disbursement rate depending on the expenditure schedule. These indicators will be monitored during supervision missions and in the daily management of the project. 9
III. PROJECT FEASIBILITY
3.1. Economic and Financial Performance
3.1.1. The envisaged development works concern a road segment that is 248.6 km long, with a large bridge over the Sanaga River. The main economic activities in the project area are farming, stockbreeding and forestry. Hence, there is high demand for transport to convey these products to the various consumption centres. The project road is currently in a very advanced state of disrepair and this reduces traffic speed. There are also traffic interruptions for days or even weeks during the rainy season. Furthermore, crossing the River Sanaga is no longer possible for almost one year now because the ferry procured for that purpose has broken down. Hence, to go from Batschenga to Ntui (distance of approximately 24 km), travellers have to take a detour that is approximately 100 km long.
3.1.2. The economic benefits to the community include: (i) endogenous benefits relating to a reduction in vehicle operation costs (VOC), road maintenance gains, reduced travel duration and the residual value of the road at project completion; and (ii) the exogenous benefits relating to agricultural and agro-pastoral surpluses generated by local communities, the increase in agricultural produce marketed in the PA, the increased value of agricultural products processed locally, economic surpluses generated from forestry, and elimination of transport interruption costs since the road will become passable throughout the year.
3.1.3. To assess the economic performance of the project, the entire road segment was subdivided into three homogenous traffic sections, namely: Batschenga-Ntui (21.3 km), Ntui- Nguila-Mankim (96.8 km) and Mankim-Mangaï-Yoko-Lena (127.05 km). For each of these sections, an economic assessment was conducted using the HDM IV model, based on cost- benefit analysis between the “no project” and “with project” situations over a period of 20 years and at a discount rate of 12%. Given the levels of development retained, the residual value of the investment at the end of the abovementioned period will be 40% for the first section (because of the large bridge over the Sanaga River) and approximately 30% for the other sections. The road is expected to be commissioned in 2019 since the works should be conducted over the 2015-2018 period.
3.1.4. The economic benefits accruing from project implementation during the period of analysis (2018-2037) yield an economic rate of return (ERR) of 14.5% on the Batschenga- Ntui section, 23.9% on the Ntui-Nguila-Mankim section and 21% on the Mankim-Mangaï- Yoko-Lena section, representing a consolidated ERR of 20.8%. The net present values (NPVs) are CFAF 6.7 billion, CFAF 65.5 billion and CFAF 62.8 billion respectively, representing a consolidated NPV of CFAF 135 billion. A summary of the economic analysis is provided in the table below. After conducting the sensitivity test (10% increase in project costs and 10% reduction in benefits), the project´s ERR finally stands at 19.5%. Hence, the project is economically profitable to the community.
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Table 3.1 Summary of Economic Analysis
Batschenga- Mankim-Yoko- Economic Parameters Analyzed Ntui-Mankim Entire Project Ntui Lena Economic rate of return (ERR) 14.5% 23.9% 21.0% 20.8%
Net present value (NPV) in CFAF million 6 679.4 65 552.6 62 794.0 135 025.9 ERR sensitivity test (10% variation in costs and 12.4% 23.2% 19.8% 19.5% benefits) Discount rate 12% 12% 12% 12%
Residual value of the investment after 20 years 39% 31% 29% 32%
3.2. Environmental and Social Impact
3.2.1. Environmental Aspect: The project was classified under Category 1 based on its scope (over 50 km) and the total number of persons affected (over 200). The detailed Environmental and Social Impact Assessment (ESIA), together with an Environmental and Social Management Plan (ESMP) and a Full Resettlement Plan (FRP) were prepared in November 2013 and finalized in July 2014. The ESIA and FRP summaries were posted on the Bank's website on 17 July 2014.
3.2.2. The main positive environmental impacts identified for the project are: (i) greater development of the ecotourism potential of the project area; (ii) better movement of Water and Forestry officers and greater efficiency of existing forestry control posts; and (iii) reduction of dust pollution.
3.2.3. The main negative environmental impacts identified for the project at this stage can be summed up as follows: (i) destruction of the vegetation cover on approximately 180 ha; (ii) disturbance of local wildlife in the national parks of Mpem et Djim and Mbam et Djerem, which is the largest national park in Cameroon; (iii) risk of accident at crossing/passage points used by mammals, especially elephants and chimpanzees; (iv) risk of water and soil pollution; (v) risk of increased pressure on forestry and wildlife resources in the project area. The application and monitoring of appropriate mitigating measures will help to attenuate these negative effects. Such measures primarily include: (i) controlled selection and management of areas to be used by enterprises; (ii) implementation of the stakeholder capacity building plan; (iii) implementation of a 300 ha compensatory reforestation plan; (iv) implementation of wildlife and plant conservation measures. This will also entail contributing to the preparation of the Mpem et Djim National Park development plan and delimitation of buffer zones around the Mbam et Djerem National Park; (v) installation of protective mechanisms at crossing points used by mammals; (vi) institution of erosion-control as well as water and soil protection mechanisms.
3.2.4. Considering that the Bank’s envisaged intervention will be conducted through a programme, a strategic environmental and social assessment (SESIA) will be conducted during phase 1 of the programme. The SESIA will define the broad guidelines of the environmental and social measures to be implemented, making them consistent with the activities of the transport sector development programme in Cameroon. The cost of the ESMP, excluding related activities and compensations, is estimated at CFAF 1.8 billion. ESMP implementation will be monitored by the environment service department of the Ministry of Publics Works which has qualified and experienced personal for such activity.
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3.2.5. Climate Change: The main challenges identified are: (i) risk of flood especially in the low-lying areas of the current road, downstream of the zones traversed by the Métarlé and Mengamoun rivers (between Batchenga and Yoko); and (ii) the production of greenhouse gases (GHGs). The adaptation actions included in project design comprise: (i) appropriate sizing of water management facilities to adjust to peak-flow return periods and slightly increasing them to adjust for climate change; (ii) flood-proofing of the road in critical areas; (iii) improvement of longitudinal drainage. The main mitigative measures are: (i) traffic decongestion and speed regulation; (ii) planting of 300 ha of replacement and street trees.
3.2.6. Social Impact: Despite its economic potential, the project area is reputed to be one of the poorest in Cameroon, with an average poverty rate that exceeds the national average (between 41.2% and 52.9% compared to 39.9% at the national level). This poverty situation is worse in remote rural areas where the poverty rate readily attains 63%. The region’s inaccessibility keeps down the prices of agricultural produce and inadequate social infrastructure is one of the main causes of poverty in the communities. Due to such inaccessibility, the project area population has no access to quality social infrastructure (boreholes, health facilities, schools, electricity) which can improve their living conditions.
3.2.7. The additional impact of the project on economic activity (exogenous benefits) relates to: (i) eradication of vehicle interruption costs; (ii) surplus agricultural production generated by the development; (iii) creation of direct and indirect jobs for the youth in project area towns; and (vi) the construction of weighing stations and toll gates along the project road which makes it possible to directly generate revenue for road and bridge maintenance.
3.2.8. Apart from quantifiable benefits (reduction of vehicle operation costs, time gains...), a certain number of impacts should also be expected from the development of the road, including: (i) better conditions of access to health facilities for the project area community which should enhance the overall health situation in the area; (ii) improved access to educational infrastructure and its positive impact on the socio-economic situation of the project area; and (iii) impact on traffic with the construction of the Kribi deep seaport capable of receiving large mining boats, making it possible to export mineral products from the Adamaoua Region. Indeed, the demand for land transport fuelled by these two aspects (mineral deposits, port) will increase future traffic flows on the road.
3.2.9. Involuntary Resettlement: The road project will lead to the partial or complete destruction or relocation of property belonging to approximately 758 households representing 6100 persons. The property of project affected persons (PAP) essentially comprises: (i) 368 residential houses; (ii) 830 cultivated or uncultivated farmlands; (iii) 83 tombs, community amenities, etc. Construction of the bridge over the Sanaga River will lead to total or partial loss of income for 14 persons involved in the transportation of goods and persons across the river (ferry operators, boatmen, motorcycle taxis, etc.). A full resettlement plan (FRP) was prepared to compensate all PAPs in accordance with Bank requirements. The cost of FRP implementation is CFAF 1.7 billion to be defrayed by the Government of Cameroon.
3.2.10. Gender and Specific Activities for Women: From the institutional standpoint, women in the project area are represented in certain decision-making bodies such as municipal councils. In the Ntui and Yoko subdivisions, for example, women represent 32% and 28% of the municipal councilors, respectively. Many women in the region have organised themselves into agricultural cooperatives and engage in the production and processing of agricultural produce to improve their incomes and ensure food security.
3.2.11. Under this project, there are plans for a specific activity that will enhance the 12
economic empowerment of women in the region. In this regard, the project will benefit from the technical assistance of UN Women Cameroon through a direct contract agreement with the Ministry of Public Works. This activity seeks to accelerate the economic empowerment of women along the project road, by ensuring greater access to factors of production, the development of economic opportunities and greater income generation.
3.2.12. Specifically, the main actions to be implemented and on which agreement has been reached with local communities relate to: (i) the provision of factors of production; (ii) production support through the distribution of agricultural kits; (iii) construction of multipurpose units for the processing and marketing of local products; (iv) construction of market stalls and drying areas along the road; (v) financial and managerial capacity building for women through the establishment of a fund to support income-generating activities; (vi) organisation and training of rural women in the management of these activities; (vii) capacity building for stakeholders and local authorities on gender mainstreaming in various community initiatives.
3.2.13. All these actions are consistent with the national gender policy and will help to create jobs by reducing inequalities along this important road as well as enhance the socio-economic effects of the road project in the area.
3.2.14. This activity will be conducted with the technical assistance of UN Women, an institution specialized in this domain, through a direct contract assistance agreement with the Ministry of Public Works and under the coordination of the Ministry of Women’s Empowerment. Details of the activities scheduled under this component are provided in Annex III of this report and in the technical annex.
3.2.15. Road Safety: From the early 1980s, Cameroon experienced an economic crisis that led to lack of road infrastructure maintenance and the bankruptcy of public transport companies. The result was an increase in road accidents. To reduce the insecurity on Cameroonian roads, the Government requested aid from development partners to institute preventive actions and adopted a national road safey strategy which serves as the reference framework for the programming and monitoring of preventive and road safety activities in the country. Hence, the 9th EDF financed a road safety component to reverse the growing trend of road accidents which, unfortunately, often occur after the improvement of road infrastructure.
The table below shows statistical trends of accidents on the inter-urban road network over the last eleven years.
Table 3.2 Accident Statistics Indicators 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201 201 1 2 Number of 2410 2046 1911 1837 2326 2201 1942 1751 1796 1738 1741 172 182 accidents 3 1 Injured 5028 5831 5789 5246 6408 6610 5597 4829 4635 4019 5292 509 499 1 2 Dead 1372 861 917 1096 1106 1122 969 990 1056 936 1259 121 113 1 2 Source: Ministry of Transport, 2013
3.2.16. The Project’s design provides for measures to improve road safety through: (i) compliance with the applicable regulations and technical standards governing road safety and pertaining to road signs, slopes, super-elevations and detours; (ii) the development of off-road temporary parking areas and rest areas for drivers; (iii) road safety awareness-raising campaigns targeting road users and project area communities.
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3.2.17. A road safety technical audit will be conducted and will entail validating the road safety aspects of project design prior to commencement of works. This assessment will be based, inter alia, on identifying accident-prone areas based on historical information on previous accidents. The audit will propose adequate mitigating measures (speed bumps, speed-limit signs). The monitoring and control of road safety aspects will be ensured later on during the works execution phase. At the same time, road safety awareness campaigns will be organised for project area communities and road users. A final audit will also be conducted at the end of the works to ensure the effective implementation of the measures planned under the project.
IV. IMPLEMENTATION
4.1 Implementation Arrangements
4.1.1. The executing organ of this project is the Ministry of Public Works (MINTP) through the AfDB/World Bank Road Projects Coordination and Implementation Unit (CSEPR-BAD/BM) set up in 1998 by the Bank and extended in 2008 to the transport projects of the World Bank. This unit is currently composed of a Coordinator, 6 (six) civil engineers, a procurement expert, an accountant and support staff. It will have a procedures manual governing its functioning. This unit has the necessary experience to conduct the operations of the sector. For the implementation of this project, the staff will be reinforced with a road engineer and an accountant whose profiles and qualifications will be submitted to the Bank for formal approval and the staff will be regularly submitted to a performance assessment every six months.
4.1.2. More specifically, it will ensure the technical monitoring of project implementation; (i) ensure that State commitments are honoured; (ii) conduct monitoring and evaluation; (iii) ensure compliance with the project implementation schedule; (iv) prepare bi-annual and annual project progress reports; (v) prepare counterpart budgets and ensure their implementation within the prescribed deadlines; (vii) ensure the financial management of the project (account audit, transmission of direct payment requests to the Bank); (viii) ensure the timely submission of the project's accounting and financial audit reports; and (ix) prepare the Borrower’s completion report to be submitted to the Bank.
4.2 Procurement Arrangements
4.2.1. All procurement of goods and works through international competitive bidding (ICB) and selection of consultancy services financed by the Bank will be done in accordance with the Bank’s Rules and Procedures for Procurement of Goods and Works (May 2008 edition, revised July 2012) or where applicable, the Bank’s Rules and Procedures for the Use of Consultants (May 2008 edition, revised July 2012), using the Bank’s standard documents, and with the provisions set out in the Loan Agreement. Procurements financed with AfDB resources will be subject to provisions governing the rule of origin. It was agreed with BDEAC, JICA and AGTF that contracts cofinanced by them will be executed in accordance with AfDB rules and procedures using the appropriate AfDB standard documents.
4.2.2. Procurement of goods and works through national competitive bidding will be done in accordance with national public procurement laws, using the country’s standard documents and following the provisions set out in Annex III of the Loan Agreements. The AfDB/World Bank Road Project Coordination and Implementation Unit (CSEPR-BAD/BM) of the Ministry of Public Works (MINTP) will be responsible for the procurement of goods, works and consultancy services. The unit has the necessary experience and requisite capacity to 14
execute procurements. Lastly, provision was made for the use of Advanced Procurement Action (APA) to speed up the pace of project implementation.
4.3 Financial Management and Disbursement Arrangements
4.3.1. The AfDB/World Bank Road Project Coordination and Implementation Unit (CSEPR-BAD/BM) of the Ministry of Public Works (MINTP) will be responsible for the administrative, financial and accounting management of the project. The fiduciary team is composed of an administrative and financial officer, two qualified accountants experienced in the management of development projects, an internal auditor (all three consultants recruited on a competitive basis with World Bank financing) and a procurement assistant who, from July 2014, will be seconded by a procurements expert consultant recruited with World Bank funding. There are plans to recruit two employees to the positions of assistant accountant and one to the position of assistant internal auditor to strengthen the fiduciary team to be recruited within the administration on a competitive basis.
4.3.2. The PIU will be responsible for the implementation of all the controls needed to ensure: (i) the use of project funds solely for the intended purposes, with due focus on economy and effectiveness; (ii) the preparation of precise, reliable and timely information for periodic financial reports; and (iii) the safeguarding of project assets. It will be responsible for producing quarterly financial monitoring reports (FMR) which analyze the activities financed by the Bank, monitoring activities per financing source (ADF, AFD, BDEAC and the Government of Cameroon) and consolidating the accounting data for these 4 (four) financing arrangements. An administrative, financial and accounting procedures manual is in place and was updated in 2010. It will be further updated to address the specificities of the project.
4.3.3. Audit Arrangements: The external audit of project accounts will be conducted by an external auditor in accordance with the Terms of Reference submitted to the Bank for formal approval. An external audit report with a letter to management will be transmitted to donors within six months following the end of each fiscal year. The audit costs will be covered by the project.
4.3.4. Disbursement Arrangements: AfDB and ADF funds for the project will be disbursed in accordance with the Bank’s current disbursements manual. The disbursement methods proposed for the project are: (i) the direct payment method; and (ii) the special account method. The direct payment method will be used for: (a) expenditure on works; (b) expenditure on goods procurement; (c) expenditure on services; and (d) annual audit of project accounts.
4.3.5. Under BDEAC funding, a special account will be opened to cover expenditures concerning (a) capacity building of the Project Implementation Unit, (b) salaries and allowances, and (c) other operating expenses.
4.3.6. A special account for Government counterpart funds will be opened and managed by the fiduciary team of the Unit. It will operate in accordance with the provisions contained in the manual of procedures for the management of special accounts for counterpart funds. The Bank will forward the “Disbursement Letter”, setting out additional instructions on the withdrawal of project funds. The Bank’s Disbursement Letter will stipulate the minimum value of direct payments as well as the detailed procedures to be followed for the payment of such funds.
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4.4 Monitoring
4.4.1. The various components of this project will be executed by the Directorate for Road Investments (DIR) in the Ministry of Public Works through the AfDB/World Bank Projects Monitoring Unit. Joint supervision missions (donors and government) and inter-donor coordination meetings will also provide an opportunity to report on the physical and financial performance of this project.
4.4.2. As concerns assessment of the level of attainment of its development objectives, a socio-economic impact monitoring and evaluation mechanism will be set up by the National Institute of Statistics (INS) which has benefitted from several AfDB capacity and building programmes. A direct contract agreement will be signed with this institute which is familiar with this type of mission within the framework of the AfDB-financed operations in the country.
Table 4.1 Project Monitoring and Supervision Deadline Stage Process Feedback Q2 -2015 Launching of project Field mission Status reports Q1-2015 Project Appraisal – contracts, Field mission/ Supervision Status reports/ Checklist resettlement Q3&Q4-2015, Construction works Field mission/ Supervision Status reports/ Checklist Q1&Q2&Q3&Q6-2017-2018 Construction works Field mission/ Supervision Status reports/ Checklist Q1-2019 Guarantee period and first year Field mission Status reports/ Checklist of activities Project completion report. Q1-2020
4.5 Governance
4.5.1. Poor governance risks, in terms of procurements and financial management, were analysed during project appraisal and feature in the annex. Although progress has been made in budget management since 2008, there are still major shortcomings that undermine public spending efficiency. The adoption in 2007 of the Law on the financial regime of the State (LRFE) was accompanied by noteworthy reforms in results-based management. This reform increases the responsibilities of the project supervisor in the design of sectoral reforms and the preparation of Medium-Term Expenditure Frameworks (MTEF). However, shortcomings in the entire planning-programming-budgeting-monitoring (PPBM) chain and the absence of an integrated public finance management system are major challenges to public spending efficiency.
4.5.2. In general, implementation of the public finance modernization plan will mitigate these risks by enhancing public finance efficiency in the transport sector. Furthermore, to improve sector governance, the Bank in 2013 initiated a public spending review the recommendations of which will be the subject of regular dialogue to strengthen public spending efficiency in the transport sector.
4.5.3. In the procurement process for international competitive bidding, governance risk will be mitigated through the Bank’s strict application of its standard rules and procedures and through ex ante reviews. The Bank’s supervision missions and technical and financial audits will ensure conformity between the terms of reference, services provided, works done, disbursements made and the loan agreement.
4.5.4. As regards procurements, despite a few shortcomings related to the fiduciary demands of the Bank, NCB procurement procedures are deemed to be in compliance overall.
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Given the conclusions of the appraisal conducted by the Bank and the efforts made by the Government, there are plans to propose to the Government to use national procedures for national competitive bidding (NCB). A letter of agreement signed with the Government will identify the shortcomings which need to be addressed. As usual, the specific measures for mitigating governance risks under this project include: (i) the recruitment of an independent financial audit firm to ensure that funds are used rationally and for their intended purpose, (ii) prior review and approval by the Bank of all procurement activities under the project; and (iii) recourse to the direct payment disbursement method to transfer project funds directly to entrepreneurs and service providers.
4.6. Sustainability
4.6.1. Road maintenance management in Cameroon is conducted by MINTP through DEPR (Directorate for Road Maintenance). It programmes road maintenance (RM) works, using a database to update the road maintenance planning and programming model. It prepares bidding documents and related contracts, ensures the approval of contracts and supervises the works executed by SMEs after the bidding process. DIER has the requisite capacity, in terms of human and material resources, to carry out its mission efficiently. It receives regular assistance from financial partners through training and equipment supply programmes.
4.6.2. To ensure the full financing of routine maintenance, Cameroon set up a 2nd generation Road Fund (RF) by Decree No. 98/162 of 26 August 1998, placed under the supervisory authority of the Ministry of Finance, but endowed with a legal personality and managerial autonomy. RF resources (over 90%) mainly comprise the road usage tax (RUT) deducted directly from fuel sales and road toll revenue. RF resources, limited to CFAF 15 billion in 1998/99, rose to CFAF 35 billion in 2005, CFAF 50 billion in 2008 and a little over CFAF 64 billion in 2010, thanks to an increase of the RUT (see Graph 1 opposite).
4.6.3. Until 2011, Cameroon's Road Fund benefitted from direct revenue collection through the tax on petroleum products. Actually, from this date and after amendment of the 2011 Finance Law, the Government decided, as a transitional measure, to deposit the resources intended for the Fund into an account opened in its name at the Public Treasury for onward transmission to an account opened in the Fund's name in BEAC, whenever there is a call for funds. This new arrangement, resulting mainly from the realization that there is relatively low resource absorption, in spite of the commitments stemming from contracts signed with SMEs, has relatively disrupted the functioning of the RF which nevertheless continues to receive the resources necessary for the conduct of its mission and currently covers close to 80% of road maintenance needs, including 100% of routine maintenance needs. This low absorption capacity is due to: (i) bottlenecks in the award of contracts; (ii) weak organisational and material capacity of the network of SMEs identified as the main contractors; and (iii) the operations programming system in which the RF intervenes, acting only as a payments mechanism.
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4.6.4. Under the current project and to reinforce the axle load control mechanism, there are plans to provide institutional support by conducting a diagnostic study of weighing stations and the axle load control system in Cameroon. This study, which focuses on the shortcomings of the mechanism and takes into account the technological progress and practices in other African countries, will yield solutions to be tested on the roads under construction, while proposing a mechanism for each existing itinerary. On the whole, these measures allow for a road network that is in relatively good condition and is regularly well maintained.
4.6.5. It should be noted in this context that maintenance of the Batchenga-Ntui-Yoko-Lena road will be included in the programming of priority network maintenance by MINTP after the guarantee period for good execution of works. It should be recalled that there are a set of ongoing actions which should help to consolidate all these efforts and which mainly focus on: (i) updating of the Road Master Plan under the Kumba-Mamfe Project to help improve works programming; (ii) training of SMEs in contract management (ongoing with European Union and World Bank funding); (iii) reforming of RF internal procedures and those governing its relations with the Contracting Authority; and (iv) building RF capacity in resource planning and management.
4.6.6. Furthermore, within the framework of establishment of the structures of the new Ministry of Public Contracts, provision is made for the adoption of processes aimed at monitoring contracts executed by SMEs in a spirit of transparency, equity and competitiveness. The reflection process already initiated on the form of the RF and absorption capacity problems will be the subject of sectoral dialogue with the Government and other partners and should focus on 3 (three) key areas: (i) capacity building on the programming of maintenance operations; (ii) qualitative improvement of the methods used to collect (resumption of direct payment) and manage road maintenance resources. This reflection process should, in the medium term, lead to streamlining of the institutional and operational mechanism governing, among other things, the sustainability of road investments in Cameroon.
4.7. Risk Management
4.7.1. The risks which could impede the achievement of results relate to: (i) non- compliance with commitments regarding axle load limits and gross weight; and (ii) loss of 2nd generation status by the RF.
4.7.2. Mitigating measures: (i) Government commitment to apply regional guidelines on axle load limits; (ii) Permanent ongoing dialogue with the authorities and targeted institutional support with various partners; steady increase, since 2004, in Road Fund revenue which currently covers close to 80% of road maintenance needs; Bank support through an update of the Road Master Plan which will build MINTP capacity in road maintenance planning and programming.
4.7.3. The risks which could hinder the achievement of outputs relate to: (i) Bottlenecks and lack of transparency in the procurement process; (ii) Increased cost of works; (iii) Early dilapidation of the road due to lack of maintenance; (iv) Non-maintenance of the socio-economic infrastructure constructed.
1.7.1. Mitigating Measures: (i) Broadening of competition using the size of works contracts and major reforms implemented by the Government through the creation of a Ministry in charge of public contracts; (ii) Alignment of project costs on those of a similar project being executed in the same area; (iii) Construction of weighing stations and the axle 18
weight control system existing in Cameroon; (iv) Infrastructure management capacity building for women's organisations.
4.8. Knowledge Development
4.8.1. The project will provide an opportunity to improve knowledge in the area of national infrastructure. Indeed, to learn lessons from this project, a monitoring and evaluation mechanism will be instituted by the executing body with the support of the National Institute of Statistics (INS) which is responsible for monitoring project and GESP indicators. Indeed, the establishment of key impact indicators prior to project commencement and impact analysis at project completion will help to produce useful information on project results and outcomes. Besides, through UN Women, the project will produce a methodological guide on gender mainstreaming in the road sector. The lessons, experiences and knowledge that will be garnered from implementation of this project will be managed from a data base in MINTP and published in annual reports and on the Bank’s website. This database will indeed facilitate the management of all knowledge accumulated during the implementation of project activities.
V. LEGAL INSTRUMENT
5.1. Legal Instrument
The project will be financed with an ADF loan and an AfDB loan granted to the Republic of Cameroon.
5.2. Conditions Associated with the Bank’s Intervention
5.2.1. Conditions Precedent to Effectiveness
This loan agreement shall become effective subject to the Borrower’s fulfilment, to the satisfaction of the Fund/Bank, of the conditions provided for in Section 12.01 of the Bank’s General Conditions Applicable to ADF/AfDB Loan Agreements and Guarantee Agreements.
5.2.2 Conditions Precedent to First Disbursement of Loan Resources
Apart from the effectiveness of this Loan Agreement, the first disbursement of loan resources shall be subject to fulfilment by the Borrower of the following conditions to the complete satisfaction of the Fund/Bank:
a. Provide the Fund/Bank with the original or certified true copy of the attestation of opening of a special account in a bank acceptable to the Fund/Bank, exclusively for payment of counterpart funds for compensation of project affected persons, as well as proof of deposit in this account of at least the equivalent of approximately 30% of the total compensation amount.
b. Provide the Fund/Bank with the original or certified true copy of the attestation of opening of a special account in a bank acceptable to the Fund/Bank, exclusively for payment of counterpart funds for financing of the Government’s share of works execution.
c. Provide the Bank with evidence of funding approval by the other co-financiers to the project or, if not, the commitment of the Borrower to fill any funding gap. 19
5.2.3 Other Conditions
Furthermore, the Borrower should, to the satisfaction of the Fund:
a. Provide proof to the Fund/Bank, not later than 30 April of each year, of the inclusion of national counterpart funds of the project into the finance law of the fiscal year concerned;
b. Provide, to the satisfaction of the Fund/Bank, the Environmental and Social Impact Assessment (ESIA) and Full Resettlement Plan (FRP), which were prepared for the section between Yoko and Lena;
c. Provide the Fund/Bank, as the works progress and prior to commencement of works in a given area, with proof of compensation of project affected persons in the area, in accordance with applicable Fund rules and procedures, the Environmental and Social Management Plan (ESMP) and the Full Resettlement Plan (FRP).
5.2.4 Commitments
The Borrower undertakes, to the satisfaction of the Fund/Bank, to:
a. execute the project, ESMP and FRP and have them implemented by contractors in accordance with national laws, recommendations, prescriptions and procedures contained in the ESMP and with the applicable ADF rules and procedures;
b. refrain from commencing works on a given area until the affected persons in that area have been fully compensated;
c. provide the Fund/Bank with quarterly reports on implementation of the ESMP as revised, including, where applicable, any shortcomings and corrective actions initiated or to be initiated;
VI. RECOMMENDATION
Management recommends that the Board of Directors approve the proposal for an ADF loan of UA 12.46 million and an AfDB loan of EURO 154,061 million to be awarded to the Government of Cameroon for the Transport Sector Support Programme: Phase 1: Development of the Batchenga-Ntui-Yoko-Lena road and in accordance to the conditions set out in this report.
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ANNEX I: DESCRIPTION OF TRANSPORT SECTOR INSTITUTIONAL SUPPORT
This institutional support will focus on the strengthening of sectoral governance by supporting structural reforms in the sector, especially enhancement of the sustainability framework for road investments and strengthening of the structures responsible for the monitoring of operations. It will concentrate on the following 3 activities: (i) preparation of a priority transport infrastructure development programme in Cameroon that is consistent with Vision 2035; (ii) diagnostic report of the weighing stations and the axle weight control system in Cameroon; (iii) Organisational and skills audit of the ADB/WB Unit; (iv) support to environmental protection:
i- Preparation of a Priority Transport Infrastructure Development Programme in Cameroon that is Consistent with Vision 2035: Focusing on the transport sector objectives and assumptions defined in the GESP, and on the available strategies for productive sectors (agriculture and rural development, mining, industry, urban development, trade, etc.), and considering the country's graduation to "blend" country status, this study will lead to: (i) the preparation of a priority transport infrastructure development programme (PTIDP) in Cameroon that is consistent with Vision 2035; (ii) the preparation of a map of Cameroon that shows all existing transport infrastructure, the new PTIDP and the growth centres identified through productive sector priorities; and (iii) a proposed PTIDP financing plan.
ii- Diagnostic Study of Weighing Stations and the Axle Load Control System in Cameroon: The operation of weighing stations in recent years has shown that they do not always guarantee optimal road protection. Moreover, this mechanism seems to encourage misconduct among certain road users (non- compliance with axle load limits despite the penalties, poor parking near weighing stations, poor governance of deployed staff, etc.). This study, which focuses on these shortcomings and takes account of the technological progress and practices in other African countries, will yield solutions to be tested on the roads under construction, while proposing a mechanism for each existing road.
iii- Organisational and Skills Audit of the ADB/WB Unit: Since the AfDB-WB Unit was established in 2008 by order of the Prime Minister, its activities have been growing steadily while its organisational structure has remained static, thus relatively affecting its performance. Moreover, human resources have equally not improved in quantity and quality. This study will lead to the design of an organisational structure that is compatible with the nature and volume of the portfolio and the establishment of a human resource development and assessment tool with a view to giving this structure a central role in coordinating the operations of the various partners in the sector.
iv- Support to Environmental Protection: The first component of this support concerns the conduct of a Strategic Environmental and Social Assessment (SESIA) for the programme. This will entail defining an environmental and social management framework that is consistent with the transport infrastructure development programme in Cameroon. The environmental service of the Ministry of publics works will be responsible for monitoring the conduct of SESIA. The second component of this institutional support concerns preparation of the development plan for the Mpem et Djim National Park (MDNP). The MDNP has no development plan. Hence, there can be no 21
coherent intervention on national policies and long-term environmental impacts for phase 1 of the programme. Therefore, this support will help to define the framework for biodiversity preservation in the area targeted by phase 1 of the programme and to institute a natural resource management framework that can ensure the sustainability of such resources. The preparation of this plan will be monitored by the Ministry of Works in collaboration with the the Ministry of Forestry and Wildlife (MINFOF).
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ANNEX II: RATIONALE AND DESCRIPTION OF THE “URBAN DEVELOPMENT SUPPORT” COMPONENT
1.1. Urban development is a crosscutting domain that covers various sectors, including transport, energy, water, sanitation, environment, governance, private sector. to name only those sectors that are relevant to the Bank’s action. That is why the strategy is implemented following an integrated approach that involves all or some of these sectors. Accordingly, each sector is an entry point which enables the Bank to implement its urban development strategy through three pillars, namely: infrastructure financing; promotion of efficient urban governance; and support to the private sector to produce and manage quality urban services through PPPs.
1.2. As regards the implementation of this strategy, the Bank focuses on the real needs and numerous requests of RMCs in the areas of urban transport and urban mobility, to develop its portfolio in this domain, by initiating, at commencement, urban development programmes which make it possible to address this issue holistically, while ensuring that urban planning and management capacity is well established in advance.
1.3. Road projects are an ideal entry point for urban development because: (i) urban movement needs are enormous; (ii) urban transport is consistent with the department’s mission; (iii) the scope of the road project can facilitate the creation of synergies with other sectors within the municipal territory; (iv) this approach makes it possible to institute a sustainable culture of urban planning and urban infrastructure maintenance; (v) the road’s value-added is even greater when it links two cities that function well and are well-managed. Prepared projects will be submitted autonomously to the Bank for financing of planned investments and actions.
1.4. In the specific case of Cameroon, the urban component of the programme is underpinned by: (i) the implementation of the Bank's urban development strategy; and (ii) the choice to finance related local infrastructure, which has, over the last fifteen years, led to the provision of essential social and community facilities to urban centres traversed by the new road, in accordance with the long-term strategy that promotes the inclusive development of the continent.
1.5. Indeed, the cities of Yaounde and Douala are characterized by their extraordinary geographical expansion which calls for a comprehensive and integrated approach to city development. Good governance and control of the urban sprawl are crucial factors for accelerating growth and reducing poverty.
1.6. The proposed institutional support will enable the government to finalize appropriate solutions, to review and provide concrete responses to major urban development challenges which include: (i) urban sector potential and conditions for accelerating growth and reducing poverty; (ii) institutional framework of decentralization and organisational mechanisms for efficient urban management; (iii) the establishment of a national urban forum to provide a participatory and permanent framework for monitoring and exchange between urban sector stakeholders; (iv) safeguard and rationalization of land occupancy in urban areas, including consideration of the needs of the urban poor; (v) conduct of a land use management policy based on complementarity between urban centres and their territories; (vi) contractualization between the Government and local government bodies for urban investment projects based on the quest for managerial performance; (vi) recourse to financing from sources other than the general State budget and development partners, especially from the private sector. 23
1.7. The urban component takes into account two pillars of the urban development strategy, namely urban infrastructure financing and the promotion of efficient urban governance. It comprises institutional support at the national level and targeted operations in the four project towns. Institutional support at the national level will facilitate the preparation of a national urban development programme in Cameroon that is consistent with the strategic pillars of the Bank’s urban development strategy, the government’s sector priorities and the commitments of various partners who support urban development in the country. This support comprises:
The formulation of the National Urban Development Programme in the medium- term, that can cover (i) institutional and technical support to the central administration (land use management, town planning, housing, surveys, decentralization) and (ii) support for the development of city councils and town councils (decentralized local authorities and municipalities), mainly in terms of urban planning and development, urban governance, urban and land tenure regulations, financing of urban infrastructure, support to basic services through PPPs (transport and mobility, energy, ICTs, energy, water, sanitation, waste management), promotion of the rural economy (local economic development). The ongoing PAMOCCA project financed by the Bank is a good basis for establishing a comprehensive urban programme.
The conduct of a feasibility study for the creation of a town planning agency for city councils (especially those of Yaounde and Douala) which is consistent with the governance pillar of the strategy.
1.8. The targeted operations in project towns are first of all included in the programming of the Ministry of Housing and Urban Development (MINHDU) in the area of urban and spatial planning; they then enhance the practice of related works which the Bank has been implementing in urban projects for the past decade; lastly, they take into account the priority needs expressed by territorial administration and beneficiary communities during public consultations. These operations concern the towns of Batchenga, Ntui, Yoko and Tibati and comprise the following activities:
Preparation or update of urban planning documents: baseline plan and land occupancy plan (LOP) in accordance with national regulations. These documents will be accompanied by technical tools necessary for the institution of good municipal management, namely the priority investment plan (PIP) and the priority maintenance plan (PMP), which is specifically focused on the infrastructure constructed.
Support for the reorganisation and building of the technical and institutional capacities of municipal services: reorganisation of services, human resource training, municipal project supervision, establishment of technical and regulatory tools, financing of facilities, mobilization of own resources. This support is necessary to monitor and evaluate the implementation of the PIP and PMP prepared.
Related Works: development of the urban road network as well as social and community infrastructure already identified in the towns of Batchenga, Ntui and Yoko.
1.9. Implementation. The urban component of the project will be implemented by the Ministry of Publics Works in collaboration with the Ministry of Housing and Urban Development. Municipal contracts will be establihsed to ensure and evaluate the overall results of this component with the beneficiary towns.
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ANNEX III: “Actions on gender promotion and acceleration of women´s empowerment along the Batchenga-Ntui-Yoko-Lena Road Project”
DESCRIPTION
1. Linkages with Bank Strategy, National and International Priorities
Action on the “Gender promotion and acceleration of women´s empowerment along the Batchenga-Ntui-Yoko-Lena Road Project” will enable the Batchenga-Ntui-Yoko-Lena Road Project to provide development and equitable growth opportunities to both men and women along the project road, thus lending it a “human face”.
This is consistent with Cameroon's development and growth priorities for 2010-2020, set out in the Growth and Employment Strategy Paper (GESP). In terms of the prospect of reducing gender inequalities, this project falls under strategic Pillar 3 on the promotion of equal opportunities between men and women in the economic and employment domains of Cameroon's National Gender Policy. The project will help to reduce the female poverty rate, guarantee access to, and control of, the means of production by women and, above all, reduce inequalities in the area of employment and vocational training.
The strategic vision projected by the Government of Cameroon through a strong drive towards the reduction of gender inequalities is consistent with the commitments of the Bank and the United Nations System/UN Women. The Bank developed a Gender Strategy 2014- 2018 with the objective of encouraging better gender mainstreaming in investments and development projects supported on the African continent. The current Gender Project along the Batschenga-Ntui-Yoko-Lena road is consistent with the components of Pillars 1 and 2 of the Bank’s Gender Strategy which are: (i) securing land tenure rights for women farmers; (ii) leveraging infrastructure for gender equality; (iii) increasing the productivity of women farmers and facilitating their inclusion in the market; and (iv) providing women with skills training in science and technology.
As regards the United Nations System (UNS), the Gender/Road Project is aligned on the United National Development Assistance Framework for Cameroon (2014-2017) which is, in turn, aligned on national priorities. It is consistent with the “Gender and Rural Development” joint programme of the United Nations System in Cameroon spearheaded by three agencies, namely: UNDP, FAO and UN Women. More specifically, this Gender/Road Project is consistent with Impact 2 of the 2014-2017 strategic plan of UN Women which focuses on economic capacity building for women and increased access to factors of production.
2. Proposed Actions and Expected Changes
The Gender/Road actions are aimed at contributing to poverty reduction in project areas. Implementation of the proposed activities will ensure that the dividends generated by the road are equitably distributed between men and women.
These actions contribute to three results, namely:
R1 – Women living along the Batchenga–Ntui–Yoko-Lena road have greater access to factors of production, including land, and to markets; R2 – Women have greater access to opportunities for sustainable financing of productive and income-generating activities to ensure their full participation in the construction and management of the road; 25
R3 – The planning, programming and budgeting processes of municipal councils and of road project initiatives are gender-sensitive.
To achieve these results, the actions will focus on directly achieving 6 outcomes, for which the expected changes are presented below:
Outcome 1.1 – Rural Women benefit from factors of production, including land, to increase their output.
To boost production, women and rural organisations will be provided with almost 100 farming and stockbreeding kits that should promote the cultivation of 100 hectares of maize, 100 ha of plantain, 100 ha of cassava, 100 ha of vegetables and 50 ha of cocoa as well as the raising of poultry (5 bands of 500 birds, or a total of 2500) and pigs (5 units of 10 pigs each, representing 50 animals).
The initial allocations will be tripled throughout the project, thus encouraging a productivity and income increase of over 30%. Besides, the road project is located in a forest zone of Cameroon. Once the road has been constructed, there will be high domestic and external demand for farmland, thus further marginalizing the vulnerable, namely women and the youth, if no initiatives are taken. That is why the project will seek to support at least 100 women and 10 cooperatives/organisations to procure landed property and carry out advocacy so that compensations under the road project benefit both men and women. Better control of the land will be ensured by supporting cashcrop and export crop production by women; in other words, support that is capable of increasing value and raising incomes.
Outcome 1.2 - Women are capable of managing gender-sensitive infrastructure to increase their incomes
This action is aimed at establishing related economic infrastructure, namely 2 gender- sensitive sheds with 50 market stalls, 2 exhibition halls and restaurants at the major road junctions, 8 multipurpose units for the processing and marketing of cocoa, cereals/tuber crops and vegetables (including one stockbreeding unit) as well as the construction of 7 community drying areas. To improve on the marketing of processed products, a packaging unit and an exhibition centre will be established in Yaounde, Ntui or Batschenga. Thanks to these various initiatives, the project will encourage a 30% revenue increase for women in business along the road and the creation of over 300 direct and indirect jobs. The proposed actions will ensure that 10 women are trained in the production of renewable energy with partner structures internally and externally and that they have technological mastery of the equipment placed at their disposal.
Outcome 2.1 – Women in business have access to financing to develop economic activities along the project road.
To ensure that more women are involved in the construction of the road and benefit from the generated dividends, it is important to encourage the creation of individual or collective income-generating activities. To that end, access to financing is crucial. The project will support close to 500 women/girls and 10 cooperatives to get access to financial products and close to 750 others to get access to non-financial products (training). This will be done through assistance in the design of business plans, support and advisory services and use of the "Mobile Learning” software in partnership with microfinance institutions and the Ministry of Women’s Empowerment, especially Women’s Empowerment Centres (WECs). It is 26
expected that close to 80% of supported business plans will receive financing from partner MFIs of the project and that over 300 women’s jobs will be created.
Outcome 2.2 – Women and girls along the road develop their professional, managerial and entrepreneurial skills in Women’s Empowerment Centres along the Batchenga- Ntui-Yoko-Lena road.
Capacity building for women, girls and boys is primordial considering that the road will speed up development. To that end, the project will accelerate the construction and equipment of 1 (one) Women’s Empowerment Centre. Close to 300 women will be trained in this WEC in catering, sewing, hairdressing/cosmetology, decoration and floral arts. Units for literacy and for counselling of survivors of gender-based violence will be established. The creation of multimedia rooms within the Women’s Empowerment Centres will facilitate the development of ICT skills and exposure to the outside world. Thanks to the actions within the WECs, close to 1000 trainees will become literate, of which 60% will start their own businesses.
Outcome 3.1 – Support and advisory services on the consideration of the differentiated needs of men and women in the project/programme cycle.
It is important to build the capacity of stakeholders to ensure crosscutting consideration of the gender dimension in all the actions that will be implemented and in the Bank's initiatives. Indeed, construction of the road itself will lead to a reduction of the time taken to reach existing basic social services. This will consequently facilitate travel to schools, hospitals and health centres and influence the main human development indicators. The project will lead to the production of a methodological guide for gender mainstreaming in the road sector, the establishment of a database and the organisation of 6 workshops that will affect close to 150 persons on gender mainstreaming in the plans and the budget.
Outcome 3.2 – The effective participation of women in local management increases
Beneficiary local councils will be strengthened to ensure better mainstreaming of the gender dimension into their council development plan. This will make it possible to highlight gender discrepancies and propose budgeted corrective measures that lead to local ownership to ensure the sustainability of initiatives. It will entail conducting gender diagnoses on local development plans, building the capacity of local and municipal stakeholders and especially women’s networks and cooperatives so that they can influence decisions that concern them.
3. Activity Management
This component of actions to be implemented is the result of a partnership between MINTP, MINPROF and UN Women. UN Women will manage the activity in collaboration with the two ministries, under a technical assistance agreement with the Ministry of Publics Works.
The executing organ of the project is the Ministry of Public Works. In a spirit of decentralization, the project will be executed in partnership with the decentralized local authorities as well as the regional and divisional services of MINTP and MINPROF.
MINTP and MINPROFF will play the role of supervisory bodies of the project, with the former playing an essentially technical role and the second playing the role of coordination and monitoring of project outputs, the investments made and the project's contribution to the objectives of the national gender strategy. To that end, a project steering committee will be set up, composed of the above sectoral ministries which deal with the issues raised.
The technical annex to this report presents the activity in detail.
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ANNEX IV: RATIONALE OF THE LEVEL OF COUNTERPART TO AfDB FINANCING OF THE PROGRAMME
1. The project will be financed by the Bank Group, BDEAC, AFD, JICA (ACFA) and national counterpart funds, in accordance with the scheduled financing plan below. The Bank Group will intervene through an ADF loan of UA 12.456 million under ADF13 and an AfDB loan of UA 136.096 million or 44.61% of the project cost.The other co-financiers are involved as follows: the French Development Agency (UA 57.804 million) in parallel funding that is 17.36% of the project cost, the Development Bank of Central African States (UA 53.878 million), or 16.18%, JICA (ACFA) for UA 35.280 million or 10.59% in joint funding. The national counterpart was estimated at UA 35.517 million or CFAF 27.85 billion, or 11.27% of the total project cost. The national counterpart was estimated at UA 35.517 million or CFAF 27.85 billion, or 11.27% of the total project cost of which UA 33.031 million for the ADF corresponding to 10% of the total project cost and UA 4.22 million for the AfDB window corresponding to 1.27% of the total project cost. These counterpart amounts represent the current level that the country can provide.
2. The AfDB’s counterpart contribution is less than 50% of the total project cost as required by the Eligible Expenditures Policy under paragraph 4.2.2. Thus, pursuant to Section 4.2.2 of the Policy on Expenditure Eligible for Bank Group Financing (Revised 19 March 2008 Version), the level of the government counterpart funding for the ADB window was determined on the basis of three criteria: :
the country’s commitment to implement its overall development programme;
the financing allocated by the country to sectors targeted by Bank assistance;
the country’s budget situation and debt level.
Country’s Commitment to Implement its Overall Development Programme
3. Learning from the implementation of its poverty reduction strategy after reaching the completion point of the HIPC Initiative in 2006, the Government in 2010 formulated Development Vision 2035. The country’s long-term vision is to make Cameroon an emerging country which is democratic and united in its diversity. Specifically, Vision 2035 is the reference framework for (i) substantially scaling down poverty, (ii) achieving the middle- income country status, (iii) becoming a new industrialized country, and (iv) strengthening the democratic process and national unity.
4. These specific objectives underlay the guidelines of the Growth and Employment Strategy Paper (GESP) for 2010-2020, which covers the first ten years of the Vision 2035. The main focus of GESP implementation is speeding up growth, formal job creation and poverty reduction. Accordingly, the intension is to (i) increase growth to 5.5% annually during the 2010-20 period; (ii) bring down underemployment from 75.8% to under 50% in 2020; and (iii) reduce the poverty rate from 39.9% in 2007 to 28.7% in 2020.
5. To achieve these objectives, the Government opted to implement in a coherent and integrated manner, with the support of Technical and Financial Partners including the Bank a three-pronged strategy. This includes: (a) a growth strategy, (b) a strategy for improving governance and strategic management of the State, and (c) an employment strategy.
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6. Less than three months from the end of the Bank's current intervention strategy in Cameroon (2010-2014), the presentation of this operation to the Boards is taking place in a particular context marked by Cameroon’s graduation to the ADB window. In the light of its recent macroeconomic performance, Cameroon in 2014 graduated to the non-concessional windows, respectively, of the World Bank and the AfDB Group. This double graduation attests to the confidence of multilateral institutions and allow the country to benefit from the resources of both the concessional and non-concessional windows of the AfDB Group. It should enable the country to finance its development, particularly its ambitious infrastructure programme more economically. The new goal is to move the country from “Blend Country" to "ADB Country."
Financing Allocated by the Country to Sectors Targeted by Bank Assistance:
7. Since 1972, the start of its operations in Cameroon, the Bank has helped to finance 26 operations in the transport sector (including multinational operations) for a total amount of UA 772.88 million, representing 19.84% of all Bank operations in the country. Since the last 5 years, the Bank has provided enormous resources to finance infrastructure in Cameroon. All these interventions represent a total of CFAF 218.8 billion devoted to the tarring of 503 km with a Government contribution estimated at CFAF 55.2 billion, or 25.80% of the investment made during this period.
8. Since 2005, the Government's share of funding for road projects has been increasing steadily. In this regard, it should be noted that in 2012, Cameroon contributed up to 27.27% to the financing of the Kumba-Mamfe road approved by the ADF Boards in November 2012. In other sectors such as agriculture and public utilities sector, the Government's contribution is around 30%.
9. Based on the foregoing, and at Government’s request, it is proposed that for the ADB window, the counterpart will be limited to 2.10% of the total duty-free cost of the programme to partially finance the works, and the full expropriation costs and operating costs of the implementing agency and the tax expenditure associated with this programme resulting from exemptions from customs duties and other taxes.
The Country’s Budget Situation and Debt Level:
10. Fiscal policy over the last three years has been moderately expansionary, on account of investment expenditure in major infrastructure projects, such as energy and transport in response to the strong demand for goods and services in a context of economic recovery and infrastructural gap accumulated over more than two decades. The spending increase is primarily financed by external borrowing and oil revenues.
Table 1 Cameroon’s Macro-economic Indicators 2009 2010 2011 2012 2013 Real GDP growth 1.9% 3.3% 4.1% 4.6% 5.6% Inflation 3.0% 1.3% 2.9% 2.4% 2.3% Overall cash-based fiscal balance as % of GDP -0.1% -1.1% -3.6% -1.9% -3.7% Current account balance as % of GDP -4.8% -3.4% -2.8% -3.3% -3.8%
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11. The expansionary fiscal policy which is, however, sustainable resulted in a budget deficit (cash basis) of approximately 3.7% of GDP in 2013 against 2% and 3.6% respectively in 2012 and 2011. The 2013 and 2014 fiscal years were marked by a major reform, namely the implementation of a programme budget in accordance with the CEMAC Directive No. 01/11-UEAC-190-CM-222.
12. The debt ratios are below Community thresholds. Since the debt cancellation under the HIPC Initiative in 2006, the risk of debt distress remains low. As of December 2013, the Cameroon’s public debt ratio to nominal GDP was 11%, one of the lowest in the CEMAC zone, for a community debt ceiling set at 70% of GDP. Based on this CEMAC community debt load and taking into account financing needs especially for structuring infrastructure as well as debt sustainability in relation to the performance of its economy, the authorities have set a debt target for the 2013-2017 period which should not exceed 35% of GDP (equivalent to 50% of the CEMAC ceiling set at 70% of nominal GDP). The annual of external debt increase to reach this 35% ceiling does not seem to comply with debt ratios, according to recent debt sustainability analysis by the IMF and the World Bank in June 2014.
13. Whereas the country’s efforts have begun to bear fruit, the fact remains that the situation remains fragile, and donor assistance remains a necessity for the country and will enable the Government to meet its budget commitments.
14. The contribution of the Cameroon Government (35.517 million) to the Transport Sector Support Programme, Phase 1, and will be used to partially finance the works and the full expropriation costs and operating costs of the implementing agency and the tax expenditure associated with this programme resulting from exemptions from customs duties and other taxes.
2 This directive on finance laws institutes the passage from a resource budget to a programme budget 30
ANNEX V
COMPARATIVE SOCIO-ECONOMIC INDICATORS Cameroon COMPARATIVE SOCIO-ECONOMIC INDICATORS
Develo- Develo- Year Cameroon Africa ping ped Countries Countries Basic Indicators GNI Per Capita US $ Area ( '000 Km²) 2011 475 30 323 98 458 35 811 Total Population (millions) 2013 22,3 1 109,0 5 909,3 1 252,8 1800 1600 Urban Population (% of Total) 2013 53,2 40,2 47,7 78,3 1400 Population Density (per Km²) 2013 42,1 46,9 70,7 23,5 1200 1000 GNI per Capita (US $) 2012 1 170 1 719 3 815 38 412 800 Labor Force Participation - Total (%) 2012-2013 38,2 37,4 67,9 72,1 600 400 Labor Force Participation - Female (%) 2012-2013 46,1 42,5 38,6 44,6 200
Gender -Related Dev elopment Index Value 0
2007 2010 2011 2005 2006 2008 2009 2012 2007-2011 0,515 0,502 0,694 0,911 2004 Human Dev elop. Index (Rank among 187 countries) 2012 150 ...... Popul. Liv ing Below $ 1.25 a Day (% of Population)2007-2011 9,6 40,0 20,6 ... Cameroon Africa Demographic Indicators Population Grow th Rate - Total (%) 2013 2,5 2,5 1,3 0,3 Population Grow th Rate - Urban (%) 2013 3,6 3,4 2,5 0,6 Population < 15 y ears (%) 2013 43,0 40,9 28,3 16,4 Population >= 65 y ears (%) 2013 3,2 3,5 6,1 16,8 Population Growth Rate (%) Dependency Ratio (%) 2013 77,9 77,9 52,4 49,9 2,6 Sex Ratio (per 100 female) 2013 100,0 100,0 103,3 94,4 2,6 Female Population 15-49 y ears (% of total population) 2013 23,7 24,0 53,1 45,2 2,5 Life Ex pectancy at Birth - Total (y ears) 2013 55,1 59,2 68,4 77,8 2,5 Life Ex pectancy at Birth - Female (y ears) 2013 56,2 60,3 70,3 81,2 2,4 Crude Birth Rate (per 1,000) 2013 37,3 34,8 21,2 11,2 2,4
2,3
2010 2011 2012 2013 2006 2007 2008 2009 Crude Death Rate (per 1,000) 2013 11,7 10,4 7,6 10,4 2005 Infant Mortality Rate (per 1,000) 2013 72,8 61,9 39,8 5,5 Child Mortality Rate (per 1,000) 2013 114,2 97,4 56,3 6,6 Total Fertility Rate (per w oman) 2013 4,8 4,6 2,6 1,7 Cameroon Africa Maternal Mortality Rate (per 100,000) 2010 690,0 415,3 240,0 16,0 Women Using Contraception (%) 2013 27,8 34,9 62,6 71,3
Health & Nutrition Indicators Phy sicians (per 100,000 people) 2004-2011 7,7 47,1 117,8 297,8 Life Expectancy at Birth Nurses (per 100,000 people)* 2004-2011 43,8 132,6 202,7 842,7 (years) Births attended by Trained Health Personnel (%) 2006-2011 63,6 52,6 66,3 ... Access to Safe Water (% of Population) 2012 74,1 68,8 87,2 99,2 71 61 Access to Health Serv ices (% of Population) 2000 80,0 65,2 80,0 100,0 51 Access to Sanitation (% of Population) 2012 45,2 39,4 56,9 96,2 41 31 Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2012 4,5 3,9 1,2 ... 21 Incidence of Tuberculosis (per 100,000) 2012 238,0 223,6 144,0 23,0 11
1
2005 2008 2009 2013 2007 2010 2011 2012 Child Immunization Against Tuberculosis (%) 2012 81,0 83,0 81,5 96,1 2006 Child Immunization Against Measles (%) 2012 82,0 74,0 83,0 94,3
Underw eight Children (% of children under 5 y ears) 2005-2012 15,1 19,7 17,0 1,4 Cameroon Africa Daily Calorie Supply per Capita 2009 2 457 2 481 2 675 3 285 Public Ex penditure on Health (as % of GDP) 2011-2012 1,6 2,9 3,0 7,5
Education Indicators Gross Enrolment Ratio (%) Primary School - Total 2012 110,6 101,9 109,4 100,9 Infant Mortality Rate Primary School - Female 2012 103,2 97,9 107,6 100,6 ( Per 1000 ) Secondary School - Total 2012 50,4 47,4 69,1 100,2 Secondary School - Female 90 2012 46,4 44,0 67,8 99,7 80 Primary School Female Teaching Staff (% of Total) 2012 51,2 46,6 58,0 84,3 70 60 Adult literacy Rate - Total (%) 2010-2012 71,3 62,0 80,3 99,2 50 40 Adult literacy Rate - Male (%) 2010-2012 78,3 70,7 85,9 99,3 30 20 Adult literacy Rate - Female (%) 2010-2012 64,8 53,7 74,9 99,0 10
0
2008 2010 2006 2007 2009 2011 2012 2013 Percentage of GDP Spent on Education 2011-2012 3,1 5,3 4,3 5,5 2005
Environmental Indicators Land Use (Arable Land as % of Total Land Area) 2011 13,1 7,6 10,7 10,8 Cameroon Africa Annual Rate of Deforestation (%) 2000-2009 0,9 0,6 0,4 -0,2 Forest (As % of Land Area) 2011 41,7 23,0 28,2 35,0 Per Capita CO2 Emissions (metric tons) 2010 0,4 1,2 3,0 11,6
Sources: AfDB Statistics Department Databases; last update : mai 2014 United Nations Population Division, World Population Prospects: The 2012 Revision; World Bank: World Development Indicators; UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports. For any given interval, the value refers to the most recent year available during the period Note : n.a. : Not Applicable ; … : Data Not Available.
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ANNEX VI CAMEROON PORTFOLIO SITUATION AS OF 30 JUNE 2014
Bank financing (in UA million) Disburseme Date of Date of 1st SECTORS PROJECTS Approval date Effectiveness nt Closing signature disburseme ADF/NTF satisfaction AfDB loan ADF grant Disb. rate nt loan Governance Land Registry Project (PAMOCCA 1) 15.11.2010 05.01.2011 17.05.2011 10.02.2012 21.03.2012 31.12.2015 7.00 13.28% Land Registry Project (PAMOCCA 2) 17.12.2013 08.06.2014 30.03.2018 5.00 0% Transport Kumba-Mamfe Road Project 21.11.2012 09.02.2013 16.09.2013 07.11.2013 27.01.2014 31.12.2017 47.26 1.62% Yaounde Sanitation Project 19.06.2013 11.09.2013 17.03.2014 31.12.2018 20.99 0% (PADY 2) Water and Semi-urban DWSS Project 28.01.2009 13.05.2009 02.11.2009 28.05.2010 14.10.2010 31.12.2014 40.00 11.43% sanitation Rural DWSS Project 12.05.2010 29.06.2010 14.04.2011 02.05.2011 21.09.2011 29.02.2016 10.00 4.63 44.69% Reinforcement of electricity transmission 15.09.2010 15.10.2010 20.04.2011 22.01.2013 25.02.2013 31.12.2015 31.64 1.26% and distribution networks (PREREDT) Energy Lom Pangar Hydro-electricity 10.11.2011 18.01.2012 14.06.2012 14.12.2012 25.07.2013 31.12.2017 44.93 0.96% Development Project Rural Infrastructure Support – Grassfield Agriculture 23.10.2013 16.12.2013 10.04.2014 31.12.2019 13.61 3.19 0% 2 Cameroon Shipyard and Industrial 12.12.2002 02.06.2003 29.04.2005 29.04.2005 13.05.2005 31.12.2014 29.48 41.67% Engineering Company Ltd (CNIC) Private AES-SONEL Investment Programme 10.05.2006 08.12.2006 13.02.2007 15.02.2007 20.02.2007 31.12.2020 53.17 100% sector Dibamba Thermal Power Plant 28.04.2010 11.05.2011 11.05.2011 15.07.2011 22.07.2011 01.06.2023 19.74 100% Kribi Thermal Power Plant 15.07.2011 22.12.2011 22.12.2011 27.08.2012 13.09.2012 15.11.2025 25.33 100 % Regional Protection of Central African Elephants 22/07/2013 16.12.2013 31.12.2017 0.25 0% Environment Regional Chad-Cameroon Interconnection Study 07.10.2013 29.01.2014 31.12.2016 1.25 0% Energy Transport Facilitation on the Bamenda- 25.11.2008 13.05.2009 04.11.2009 01.12.2009 31.12.2014 90.39 40.67% Enugu Corridor Regional Ketta-Djoum Road Project and Transport Transport Facilitation along the Brazzaville-Yaounde 25.09.2009 11.01.2010 29.03.2010 13.02.2012 24.04.2012 31.12.2015 59.27 53.23% Corridor
603.700 TOTAL COMMITMENTS 43.75%
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ANNEX VII: MAIN RELATED PROJECTS FINANCED BY THE BANK AND OTHER DEVELOPMENT PARTNERS IN THE COUNTRY
Donors Projects Amount Comments In CFAF million Development of the Numba-Bachuo Akagbe 42 080 Works completed in December 2013 (50 km) Development of the Garoua Boulaï- 42 556 99% of works executed Ngaoundéré Road, Lot 2: Nandeke-Mbere (82 km) Bamenda-Mamfé- Ekok-Enugu Corridor 87 726 70% of works executed ADF (approximately 153 km, comprising 63 km being rehabilitated and 90 km of new construction) Brazzaville-Yaoundé Corridor; Ketta-Djoum 50 135 65% of works executed segment Batchenga-Yoko-Ngaoundéré Road Study 2 768 95% of the study conducted Transport Facilitation Programme 179 600 80% of works executed IDA Development of the Garoua Boulaï- EDF Ngaoundéré Road, Lot 1: Garoua Boulaï - 60 000 85% of works executed Nandéké (86 km) Construction of the Ayos-Bonis Road (Lot 1: ABEDA - KFAED Ayos-Abong-Mbang (88 km) 16 000 Works completed in 2012
IsDB-ABEDA Sangbeliman –Djoum 38 000 15% of works executed
Construction of the Ayos-Bonis Road (Lot 2: IsDB – Saudi Fund – OPEC Fund Abong-Mbang –Bonis (103 km) 22 000 Works completed in 2012
Construction of the Yaoundé - Olama Bridge ABEDA – KFAED – OPEC Fund Road (80 km) 23 000 80% of works executed
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APPENDIX VIII MAP OF THE PROJECT AREA
The staff of the ADB Group have provided this map for the exclusive use of readers of this report to which it is appended. The appellations and the demarcations on this map do not imply any judgment on the part of the ADB Group and its members concerning either the legal status of a territory or the approval or acceptance of its boundaries.
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