Appraisal Report
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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 iii i 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 ii 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 iii 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)