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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 49974-NG PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 119.6 MILLION (US$190.0 MILLION EQUIVALENT) AND A PROPOSED TRUST FUND GRANT FROM THE GLOBAL ENVIRONMENT FACILITY IN THE AMOUNT OF US$4.5 MILLION TO THE Public Disclosure Authorized FEDERAL REPUBLIC OF NIGERIA FOR THE LAGOS URBAN TRANSPORT PROJECT 2 JUNE 2, 2010 Transport Sector Country Department AFCW2 Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective October 30, 2009) Currency Unit = Nigerian Naira US$1 = 151 Nigerian Naira US$1 = SDR 0.6289 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AFD Agence Française de Développement (French Development Agency) BCR Benefit-Cost Ratio BPP Bureau of Public Procurement BRT Bus Rapid Transit CAS Country Assistance Strategy CBO Community Based Organizations CEO Chief Executive Officer CFAA Country Financial Accountability Assessment CMS Church Missionary Society CO Carbon Monoxide CO2 Carbon Dioxide CBD Central Business District CPAR Country Procurement Assessment Review CPS Country Partnership Strategy CQS Consultants’ Qualifications Selection CRM Customer Relationship Management DA Designated Account DfID United Kingdom Department for International Development DsTV Digital Satellite Television EIA Environmental Impact Assessment EMP Environmental Management Plan ERGP Economic Reform and Governance Project ESMF Environmental and Social Management Framework FAD Financial and Accounts Department FBC Lagos NURTW (First BRT) Cooperative Society Limited FGN Federal Government of Nigeria FM Financial Management FMS Financial Management System FPM Financial Procedures Manual GEF Global Environment Facility FOR OFFICIAL USE ONLY GHG Greenhouse Gas GIS Geographic Information Systems IAU Internal Audit Unit IBRD International Bank for Reconstruction and Development IC Individual Consultant ICB International Competitive Bidding IDA International Development Association IDF Institutional Development Fund IFRs Interim Unaudited Financial Reports IRR Internal Rate of Return ISR Implementation Status Report ITS Intelligent Transport Systems LAMATA Lagos Metropolitan Area Transport Authority LASTMA Lagos State Traffic Management Authority LCDAs Local Council Development Areas LGA Local Government Area LRT Light Rail Transit LSG Lagos State Government LSMT Lagos State Ministry of Transportation LSMPT Lagos State Ministry of Public Transportation LSMWI Lagos State Ministry of Works and Infrastructure LSMWT Lagos State Ministry of Works and Transport LUTP Lagos Urban Transport Project M&E Monitoring and Evaluation MD Managing Director MDG Millennium Development Goals MOF Ministry of Finance MOT Ministry of Transport (or Transportation) MOW Ministry of Works NCB National Competitive Bidding NEEDS National Economic Empowerment and Development Strategy NGOs Non-Governmental Organizations NMT Non-Motorized Transport NPV Net Present Value NURTW National Union of Road Transport Workers OSP Operations Service Plan PDO Project Development Objective PEFA Public Expenditure Financial Accountability PEMFAR Public Expenditure Management and Financial Accountability Review PFM Public Financial Management PPP Public Private Partnership PRP Procurement Reform Program PRSP Poverty Reduction Strategy Paper QCBS Quality and Cost Based Selection RAP Resettlement Action Plan RPF Resettlement Policy Framework This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. SBD Standard Bidding Documents SIL Specific Investment Loan SOE Statement of Expenses TPU Transport Planning Unit US United States VKT Vehicle Kilometer Travelled WB World Bank Vice President: Obiageli K. Ezekwesili Country Director: Onno Ruhl Sector Director Inger Andersen Sector Manager: C. Sanjivi Rajasingham Task Team Leader: Ajay Kumar NIGERIA Lagos Urban Transport Project 2 TABLE OF CONTENTS Page A. STRATEGIC CONTEXT AND RATIONALE ......................................................................... 1 1. Country and sector issues ............................................................................................................... 1 2. Rationale for Bank involvement ..................................................................................................... 5 3. Rationale for GEF financing .......................................................................................................... 6 4. Higher level objectives to which the project contributes ............................................................... 7 B. PROJECT DESCRIPTION ........................................................................................................ 8 1. Lending instrument ........................................................................................................................ 8 2. Project development objective and key indicators ......................................................................... 8 3. Project components ........................................................................................................................ 9 4. Lessons learned and reflected in the project design ..................................................................... 10 5. Alternatives considered and reasons for rejection ........................................................................ 12 C. IMPLEMENTATION .............................................................................................................. 13 1. Partnership arrangements ............................................................................................................. 13 2. Institutional and implementation arrangements ........................................................................... 14 3. Financial Management Arrangements .......................................................................................... 14 4. Monitoring and evaluation ........................................................................................................... 15 5. Sustainability ................................................................................................................................ 15 6. Critical risks and possible controversial aspects .......................................................................... 19 7. Credit conditions and covenants................................................................................................... 20 D. APPRAISAL SUMMARY ....................................................................................................... 21 1. Economic and financial analyses ................................................................................................. 21 2. Technical ...................................................................................................................................... 22 3. Fiduciary ....................................................................................................................................... 22 4. Social ............................................................................................................................................ 24 5. Environment ................................................................................................................................. 25 6. Safeguard policies ........................................................................................................................ 26 7. Policy exceptions and readiness ................................................................................................... 27 Annex 1: Country and Sector Background ......................................................................................... 28 Annex 2: Major Related Projects Financed by the Bank and/or other agencies ................................. 44 Annex 3: Results Framework and Monitoring .................................................................................... 45 Annex 4: Detailed Project Description ............................................................................................... 56 Annex 5: Project Cost ......................................................................................................................... 68 Annex 6: Implementation Arrangements ............................................................................................ 69 Annex 7: Financial Management and Disbursement Arrangements .................................................. 79 Annex 8: Procurement Arrangements ................................................................................................. 94 Annex 9: Economic and Financial Analysis ..................................................................................... 106 Annex 10: Safeguard Policy Issues ................................................................................................... 117 Annex 11: Project Preparation and Supervision ............................................................................... 124 Annex 12: Documents in Project File ..............................................................................................
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