AFRICAN DEVELOPMENT BANK Language: English Original: French
LASIARPPA TROPER
DAOR TCEJORP V
CILBUPER FO AISINUT
INFRASTRUCTURE DEPARTMENT II NOISIVID TROPSNART NOISIVID II HCRAM 8002
TABLE OF CONTENTS
Page
PROJECT INFORMATION SHEET, EQUIVALENTS, ACRONYMS AND ABBREVIATIONS, PROJECT MATRIX – EXECUTIVE SUMMARY (i - viii)
1. PROJECT ORIGIN AND BACKGROUND 1
2. THE TRANSPORT SECTOR 1
2.1 The Transport System 1 2.2 Transport Sector Overview 2 2.3 Transport Policy, Planning and Coordination 3
3. THE ROAD SUBSECTOR 3
3.1 The Road Network 3 3.2 Traffic, Motor Vehicle Fleet and Road Safety 4 3.3 The Road Transport Industry 5 3.4 Road Network Administration and Staff Training 5 3.5 Road Maintenance 6 3.6 Financing of Road Investments and Maintenance 7 3.7 The Road Construction Industry 8
4. THE PROJECT 8
4.1 Design and Formulation 8 4.2 Project Area and Beneficiaries 9 4.3 Strategic Context 11 4.4 Project Objectives 11 4.5 Description of Project Outputs 11 4.6 Environmental Impacts 13 4.7 Socio-economic Impacts 13 4.8 Project Cost 14 4.9 Source of Financing and Expenditure Schedule 15
5. PROJECT IMPLEMENTATION 16
5.1 Executing Agency 16 5.2 Institutional Arrangements 16 5.3 Implementation Schedule and Supervision 16 5.4 Procurement Arrangements 16 5.5 Disbursement Arrangements 17 5.6 Monitoring and Evaluation 17 5.7 Audit Reports 17 5.8 Coordination with the other Donors 17 5.9 Performance of the Bank’s Portfolio and Lessons Learnt 17
TABLE OF CONTENTS (Continued) Page
6. PROJECT SUSTAINABILITY AND RISKS 18
6.1 Recurrent Costs 18 6.2 Project Sustainability 18 6.3 Major Risks and Mitigation Measures 19
7. PROJECT BENEFITS 19
7.1 Economic Analysis 19 7.2 Social Impact Analysis 21 7.3 Sensitivity Analysis 21
8. CONCLUSIONS AND RECOMMENDATIONS 21 8.1 Conclusions 21 8.2 Recommendations 21
______This report was written by Messrs M. D. SANGARE, Chief Transport Engineer, and H. ABID, Consulting Transport Economist, following their mission in Tunisia in February 2008. J. FRANSSEN, Consulting Environmental Expert contributed the environmental section of the report. Any queries concerning the document should be referred to the Division Manager concerned, Mr. J. RWAMABUGA, OINF.2 (Extension 2181) or the Project Officer, Mr. M. D. SANGARE (Extension 2281). The Director of the Department is Mr. G. MBESHERUBUSUA (Extension 2034).
LIST OF TABLES
No. TITLE
3.1 Road Budgets (10th and 11th Plans)
4.1 Summary Project Cost Estimates Net of Taxes
4.2 Financing Plan and Estimated Disbursement Schedule
4.3 Summary of Net of Tax Cost by Expenditure Category
7.1 Project Benefits over the 2009-2029 period
LIST OF ANNEXES
Number of TITLE Pages
1. Map of Road Network and Project Areas 1 2. Organization Chart of the General Directorate of Highways (DGPC-MEHAT) 1 3. Summary of Environmental and Social Management Plan 7 4. Recommendations of the Study on Unit Costs for Road Construction Works in Africa 3 5. Procurement Arrangements 1 6. Implementation Schedule 1 7. Economic Evaluation (traffic and EIRR) 9 8. List of Ongoing Bank Group Operations in the Sector 1 9. List of documents used 1
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AFRICAN DEVELOPMENT BANK Temporary Relocation Agency (TRA) BP. 323-1002 TUNIS BELVEDERE, TUNISIA Tel.: (216) 71.253.304/71.333.680
PROJECT INFORMATION SHEET Date: March 2008
The information given hereunder is intended to provide some guidance to prospective suppliers, contractors, consultants and all persons interested in the procurement of goods and services for the projects approved by the Boards of Directors of the Bank Group. More detailed information and guidance should be obtained from the Executing Agency of the Borrower.
1. COUNRY AND NAME OF PROJECT : Republic of Tunisia Road Project 1 of the 11th Plan (2007-2011).
2. LOCATION : All 24 of the country’s Governorates, with the exception of Kasserine, Gafsa, Kebili, Tataouine and Tozeur
3. BORROWER : Republic of Tunisia
4. EXECUTING AGENCY : Ministry of Equipment, Housing and Regional Development (MEHAT), General Directorate of Highways (DGPC) Cité Jardins - Tunis 1002 Tel.: 216 (71) 280.313, Telex 13565 HABITA TN Fax: (216) (71) 787.062. E-mail: [email protected] 5. PROJECT DESCRIPTION : The project comprises the following components
A. Road Works
A.1 Development road works (by- passes of the towns of Beja, Jendouba, Sidi Bouzid, M’Saken- Est at Sousse and El Hamma at Gabes and modernization of the following sections: GP6D at Beja, GP2 between Enfida and Kairouan and GP3–Fahs to Zaghouan;
A.2 Rehabilitation works on 374.1 km of classified roads;
A.3 Reinforcement works on 640.4 km of roads; and
A.4 Construction works on 14 highway structures.
ii B. Works Supervision Services
B.1 Works supervision and coordination of project activities;
B.2 Consultants’ assistance assignments for the inspection and monitoring of the development road works and highway structure works.
6. TOTAL COST : UA 246.15 million
i) Foreign Exchange Cost : UA 162.50 million ii) Local Currency Cost : UA 83.65 million
7. BANK GROUP LOAN ADB : UA 162.50 million
8. OTHER SOURCES OF FINANCE Government : UA 83.65 million (EUR 174.33 million)
9. LOAN APPROVAL DATE : May 2008
10. PROBABLE DATE OF PROJECT START-UP AND DURATION : May 2008/60 months
11. PROCUREMENT OF GOODS AND SERVICES : Works
- International competitive bidding for the 5 developmental and road rehabilitation works ;
- National competitive bidding in 2 successive phases for the strengthening works (314 km and 326.4 km), 2 successive phases for the bridge construction works (2 x 7 units) and for the 2 developmental road works projects.
12. CONSULTANCY SERVICES REQUIRED AND STAGE OF SELECTION : None
13. ENVIRONMENTAL CLASSIFICATION : Category II.
UA 1 = SDR 1 UA 1 = TND 1.92901 UA 1 = EUR 1.07281 ------
iii EQUIVALENTS AND ABBREVIATIONS Currency Equivalents (February 2008) Currency Unit = Tunisian Dinar (TND) UA 1 = TND 1.92901 = EUR 1.07281
EUR 1 = TND 1.92901 = UA 0.5562
Fiscal Year
1 January - 31 December
Weights and Measures 1 metric tonne = 2204 pounds (lbs) 1 kilogramme (kg) = 2.200 lbs 1 metre (m) = 3.28 feet (ft) 1 millimetre (mm) = 0.03937 inch (") 1 kilometre (km) = 0.62 mile 1 square kilometre (km2) = 0.39 square mile 1 hectare (ha) = 2.471 acres
Acronyms and Abbreviations
ADB = African Development Bank AFESD = Arab Fund for Economic and Social Development ANBEIC = National Association of Consulting Firms and Engineers ANPE = National Environmental Protection Agency BC = Bituminous Concrete BG = Bituminous Gravel CETEC = Construction Technical Testing Centre CG = Crushed Gravel DE = Directorate of Research DEER = Directorate of Road Operations and Road Maintenance DGAC = General Directorate of Civil Aviation DGMM = General Directorate of Merchant Shipping DGPC = General Directorate of Civil Engineering DGPE = General Directorate of Planning and Research DGT = Directorate of Major Works DGTT = General Directorate of Land Transport DM = Directorate of Plant and Equipment DP = Directorate of Project Programming and Monitoring DPT = Technical Upgrading Directorate DREHAT = Regional Directorate of Housing and Infrastructure EIB = European Investment Bank EIRR = Economic Internal Rate of Return EIS = Environmental Impact Study EMME2 = Equilibrium Model, Version 2 EPIC = Public Industrial and Commercial Establishment GDP = Gross Domestic Product GP (RN) = Trunk Road (national roads) HDM = Highway Design and Maintenance Model HDV = Heavy Duty Vehicle HRCG = Humidified Reconstituted Crushed Gravel
iv INS = National Institute of Statistics KDF = Kuwaiti Development Fund KT = Kilometric Tonne MAERE = Ministry of Agriculture, Environment and Water Resources MC (RR) = Secondary Roads MEHAT = Ministry of Infrastructure, Housing and Regional Planning MT = Ministry of Transport MUA = Million UA (Bank Unit of Account) OACA = Civil Aviation and Airports Authority OMMP = Merchant Shipping and Ports Authority PC = Private Car PK = Kilometre Point RL (RVE) = Tertiary Roads SD = Surface Dressing SNCFT = National Railway Company of Tunisia SNTRI = National Regional and Inter-urban Transport Company SRPC = Regional Civil Engineering Services SRT = Regional Transport Company SRTG = Regional Bus Transportation Companies UA = Unit of Account of the African Development Bank VOC = Vehicle Operating Costs WB (IBRD) = World Bank
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REPUBLIC OF TUNISIA PROJECT LOGICAL FRAMEWORK ROAD PROJECT 1 OF THE 11TH PLAN APPRAISAL REPORT HIERARCHY OF OBJECTIVES PERFORMANCE INDICATORS INDICATIVE TARGETS AND TIME ASSUMPTIONS/RISKS EXPECTED OUTCOMES SCOPE FRAMES Goal Impacts Beneficiaries : Impact indicators Expected progress and timeframes in the Assumptions Contribute to the upgrading of road 1. National and international trade and The entire Tunisian 1. Increase in intra- and long-term 1. Sustained economic infrastructure so as sustain growth and create socio-economic development population interregional trade and export 1. Increase in exports >10% from 2013 and growth favorable conditions which will strengthen the 2. Inland areas served by more growth increase in FDI roads with adequate capacity 2. Pursuit of upgrading competitiveness of exports 2. Number of paved roads with programme in the adequate capacity transport and roads sector Sources: Report on Results of 11th Plan, National Statistics (employment, population, 2. 85% or more of road infrastructure in good mobility and intra and inter- condition by 2016 and integrated with other regional trade etc.) transport modes All the regions linked with roads of appropriate capacities (main parts of the carriageways strengthened and width of carriageway >=7,6 m) Expected progress and time frames in the Assumptions Project Objective Effects Beneficiaries Indicators of effects medium-term 1 Effective Improve the level of service of the classified 1. Network capacity constraints Capacity of rehabilitated roads built Population of 19 of 1. Proportion of roads of width t <7 m falls implementation of road network so as to intensify intra and inter 2. Vehicle Operating Costs (VOC) up in terms of condition of carriage the 24 Governorates from 40% to 25% by end 2013 and 640 km planned investments regional trade and improve the accessibility of 3. Travel time way structures and their size, the of Tunisia of roads strengthened the country’s principal development poles. 4. Efficacy of road maintenance main roads made secure in 11 2. VOC reduced from 10 to 45% on 2 Effective budget allocations of TND 63 Governorates with 14 appropriate rehabilitated roads in 2013; million in respect of crossing structures. 3. Journey time reduced by over 30% on road maintenance and rehabilitated roads effective 4. Protection of national road assets by implementation of road maintenance efficient and effective maintenance programmes and Source: DEER reports in 2013 on the sensitization on road roughness indicators of carriageways and the safety. VOCs and maintenance of the network.
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REPUBLIC OF TUNISIA PROJECT LOGICAL FRAMEWORK ROAD PROJECT 1 OF 11TH PLAN
APPRAISAL REPORT
HIERARCHY OF OBJECTIVES PERFORMANCE INDICATORS INDICATIVE TARGETS AND TIME ASSUMPTIONS /RISKS EXPECTED OUTCOMES SCOPE FRAME Assumptions Inputs and Activities Outputs Beneficiaries Output indicators Expected progress and timeframes in the 3.1 Compensatory i) Compensation for expropriation of land and 1. 4 bypasses of towns (Beja, 1. Effective payment of short-term measures implemented implementation of works to move concessionary Jendouba, Sidi Bouzid, M’Saken-Est Populations of 20 of compensation for expropriations 1. All compensation paid prior to the start for the few networks at Sousse and El Hamama at Gabes) the 24 Governorates expropriations of land. ii) Procurement of works (developmental road and modernization (dual 2. Completion of road works. of each series of road, rehabilitation and Moving of the works, rehabilitation of classified roads and the carriageways) of the GP6D section at Works contractors and control and supervision missions bridge construction works; concessionary networks construction of 14 highway structures on the Beja, GP2 between Enfida and Consulting firms prior to the road works. 2. All contracts awarded before 2011, classified road network. Kairouan and GP3 –Fahs to Sources : ADB project status, iii) Procurement of services for works control Zaghouan supervision and mid-term review procurements made within the time frame missions (developmental road works, highway 2. 374.1 km of rehabilitated and re- and all works completed by 31 December structure works control) and supervision surfaced roads with a carriageway reports, as well as project audit resources for MEHAT; and ii) geotechnical width >=7.6 m ; and completion reports 2013. control of materials and works quality; 3. 640.4 km of reinforced, re- Works supervision and project management and surfaced roads; and monitoring by the Administration 4. 14 highway structures totaling 1.73 Resources by expenditure categories lm built on the network
UA Million Components UA Mio Exprop + displacement of 13.13 networks Works 202.81 Supervision and inspection 3.49 Not Allocated 26.71 Total excluding taxes 246.15
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EXECUTIVE SUMMARY
Project Origin and History
For its 11th Economic and Social Development Plan (2007-2011), the Tunisian Government retained a Road Infrastructure Investment Plan for a total amount of TND 5,594 million. This programme is consistent with the pursuance of the overall transport sector upgrade programme initiated during successive previous plans. The objective is to put in place an efficient high quality transport system, support economic growth, and contribute to the objectives of export competitiveness, with a view to speeding up the process of opening up the Tunisian economy.
It should be emphasized that the implementation of this upgrade programme is based on a sector strategy initially prepared for the 1995-2005 period, but refocused for land transport under the National Transport Master Plan for the 2002-2020 period. Since 1995, the Bank has contributed to the upgrading of road infrastructure by financing 5 road projects for a cumulative loan amount of UA 459.5 million. These projects have made it possible to rehabilitate almost 1,700 km of roads, reinforce 850 km of roads, and build 88 bridges across the classified road network. Two (2) of these completed projects were ranked in 2005 and 2006 among the best projects implemented by the Bank in the transport sector.
Under the implementation of the investment programme of the 11th Plan, the Tunisian Government and the Bank discussed the financing of a road programme for a total cost of TND 1,087 million (EUR 620 million) concerning: (i) the implementation of 7 projects for developmental road works in the major towns, and the roads in Greater Tunis (“Grand Tunis”); (ii) the development of 1,252 km of classified roads; and (iii) the reinforcement of 1,332 km of classified roads; and (iv) the construction of 27 highway structures.
This project constitutes the first component of this financing for an amount of UA 162.50 million (€174.33 million). Its implementation is in keeping with the Bank’s Operations Strategy for Tunisia for the 2007-2011 period, which retained infrastructure modernization and strengthening of the productive sector as pillars of intervention as set out in the Country Strategy Paper (CSP) for the period.
The official request for the financing of this first component of the operation was submitted to the Bank in January 2008, and the project was appraised following a Bank mission in February 2008.
Purpose of the Loan
The loan, in an amount of UA 162.50 million, will be used to finance the foreign exchange costs of the road works retained.
Project Objective
The project aims to improve the level of service of the classified road network so as to intensify intra-and inter-regional trade, and improve accessibility to the country’s principal development poles.
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Project Components: To achieve this objective, the project will focus on the implementation of works relating to the following components: (i) Development road works (by-passes for the towns of Beja, Jendouba, Sidi Bouzid, M’Saken-Est at Sousse and El Hamma at Gabes, and modernization by creating dual carriageways on the GP6D section at Beja, on the GP2 between Enfida and Kairouan and the GP3 –Fahs to Zaghouan); (ii) rehabilitation works on a total of 374.1 km of paved roads; (iii) reinforcement works on 640.4 km of paved roads; (iv) construction works on 14 highway structures on the classified road network.
Project Cost: The estimated total cost of the project, net of taxes, is TND 474.82 million (UA 246.15 million), comprising TND 313.47 million (UA 162.50 million) in foreign exchange and TND 161.36 million, equivalent to UA 83.65 million, in local currency.
Financing Source: The project will be jointly financed by the Bank and Tunisian Government; the Bank’s financing will cover the foreign exchange costs of the works estimated at UA 162.50 million representing 66% of the total project cost net of taxes and corresponding to 70% of the total cost of works net of taxes. The Government will bear the cost of the balance of the total local currency cost, i.e. 34% of the total cost of the project corresponding to: (i) 30% of the cost of works net of taxes, (ii) 100% of the cost of clearing the rights of way and moving the concessionary networks; and (iii) 100% of the cost of works supervision and inspection services, including the management and monitoring of all the related activities.
Project Implementation and Monitoring: The project will be implemented over a 60-month period from the date of approval of the related Loan by the Bank. The project management will be entrusted to the Ministry of Equipment, Housing and Regional Development (MEHAT), in particular the General Directorate of Civil Engineering (DGPC) and its decentralized services in the regional directorates of MEHAT.
Conclusion and Recommendations: It is recommended that a loan not exceeding UA 162.50 million be granted to the Republic of Tunisia for the implementation of the project as described in the report. In addition to the usual Bank Group conditions, the Loan will be subject to the conditions specified in the Loan Agreement.
1. PROJECT ORIGIN AND BACKGROUND
1.1 In order to consolidate its socio-economic performance, Tunisia has opted for a strategy of gradual integration into the global economy, which is reflected in particular by the signing of the Free Trade Agreement with the European Union. In this agreement, Tunisia undertook to dismantle, as from 1996, on the basis of a twelve-year schedule, all its customs barriers on European industrial products.
1.2 In view of the important role of the transport sector in the economic and social development process and as support to the strategy for integrating the global economy, the Government, for the 1997-2006 decade (covering the periods of the 9th and 10th Plans), embarked on an ambitious programme aimed at establishing an efficient transport system and high quality infrastructure. With regard to road infrastructure, major rehabilitation and modernization projects of the classified road network were implemented over the 1997-2006 period for an amount of TND 2,654 million. These projects have made it possible to improve the level of service of the road network by building its capacity, thereby reducing the proportion of roads with carriageway widths of less than 7 m from 70% to below 40%. The Bank participated in the financing of these projects by granting 5 loans of a total cumulative amount of UA 459.5 million, and thereby helped to rehabilitate 1,700 km of roads, reinforce a cumulative length of 850 km of roads, and build 88 highway structures spread over the classified road network. 1.3 Under the implementation of the investment programme of the 11th Plan (2007- 2011) in road infrastructure, the Tunisian Government and the Bank discussed the financing of a road programme for a total cost of TND 1,087 million (EUR 620 million) concerning: (i) the implementation of 7 projects for development road works in the major towns, and the roads in Greater Tunis; (ii) the development of 1,252 km of classified roads; (iii) the reinforcement of 1,332 km of classified roads; and (iv) the construction of 27 highway structures. This project constitutes the first component of this financing for a loan amount of UA 162.50 million (€174.33 million). Its implementation is in keeping with the Bank’s Operations Strategy for Tunisia for the 2007-2011 period, which retained infrastructure modernization and strengthening of the productive sector as pillars of intervention as set out in the Country Strategy Paper (CSP) for the period.
1.4 Following the Government’s official request for financing, this project was appraised during a mission in February 2008. This Appraisal Report is based on an assessment of the outputs of the road investments of the 9th and 10th plans, the Government’s road infrastructure investment programme for the period of the 11th Plan (2007-2011), the designs of the planned rehabilitation works, and discussions with the Tunisian Authorities.
2. THE TRANSPORT SECTOR
2.1 The Transport System: Transport plays a key role in the national economy, since it contributes around 6% to GDP and accounts for almost 140,000 direct jobs (i.e. over 4.5% of the work force) which are mainly concentrated in the road sub-sector (over 65%). The system comprises the following sub-sectors: roads, air, sea and rail with respective shares of 48%, 30%, 17% and 5%. To support the strong economic and social growth projected for the 2 country, infrastructure improvement actions are essential, and will revitalize trade, particularly by developing poorly served destinations, and contribute to lower transport costs.
2.2 Transport Sector Overview
2.2.1 Road Transport: With an average density of 70l m/km² and 12,600 km of paved roads, the national classified road network serves all the Governorates of the country and provides links with the neighbouring countries. This network accounts for virtually all movements of persons and 80% of the transportation of goods with an annual average increase in traffic of 6.1% over the 1997-2006 period. This situation indicates the importance of road transport among the existing modes of transport. Furthermore, daily demand for inter- regional transport by travellers reached around 361,000 passengers in 2006 compared to 290,000 in 2000, i.e. around 96% of interurban travel demand. With regard to freight, daily inter-urban tonnage transported also increased from 192.2 thousand tonnes in 2000 to 281.2 thousand tonnes in 2006. For the 2006-2020 period, road transport activity, measured in vehicles/km, is expected to rise by 95.5% for goods and 92.0% for passengers.
2.2.2 Rail Transport: Rail traffic caters for 35 million passengers and 13 million tonnes of goods, i.e. respective market shares of 4.4% and 14.1%. This annual traffic has remained virtually unchanged over the last two decades to the benefit of the roads. In 2006, overall traffic rose to 1,407 million passengers/km and 2,173 million tones/km compared to 1,294 million passengers/km and 2,082 million tones/km in 2004. with a 5.7% increase over 2005, but only 0.3% over 2004. Revenue also increased to TND 101.70 million in 2006 compared with TND 93.50 million and 92.12 million respectively in 2005 and 2004. The Bank and several other financial partners (EIB, IBRD, JIBC, and AFD) are providing support for the modernization of the rail network both in the areas of infrastructure and rolling stock.
2.2.3 Maritime Transport: Port infrastructure comprises 8 ports for international trade, the most important of which are: Bizerte, Rades, Sfax and Gabes. These ports handle the bulk of the international traffic with almost 67% of the freight traffic, totaling around 29 million tonnes in 2006 compared to 27.7 million tonnes in 2005, an almost 5% increase in traffic. The ports under the Merchant Shipping and Ports Authority (OMMP) handled freight traffic of 22.8 million tonnes also up by 5% on 2005. With a view to improving the quality of service and containing transport costs to strengthen competitiveness of the shipping sub sector, the following measures have been taken: (i) improved infrastructure and equipment; and (ii) increasing the participation of private enterprises in port development through concessioning. Thus the construction of a 2nd generation port (deep-water port), mainly dedicated to transshipment is under study.
2.2.4 Air Transport is assured by 8 airports, three of which are international (Tunis, Monastir and Djerba). These airports are managed by a State structure, OACA (Civil Aviation and Airports Authority) which is also responsible for the construction, maintenance and supply of airport equipment, and provides air navigation safety assistance. Total traffic estimated at around 10 million passengers per year is generated mainly by these 3 airports. An estimated 85% of this traffic is tourist. Air freight is in the region of 3 million tonnes per year. The national air transport business is dominated by the national carrier, Tunisair, which accounts for an estimated 38% of the international air transport market and 62% of the international freight market. The BOT (Build, Operate and Transfer) construction of a new international airport at Enfidha with an initial capacity of 5 million passengers per year began in 2007. 3
2.2.5 Multimodal Transport remains little developed in Tunisia. At the national level, the SNCTF carries out a few combined rail-road operations. International road transport (IRT) of goods is also weak due to the fact that transport companies are small and Tunisian drivers face difficulties in finding work and return freight for Europe.
2.3 Transport Policy, Planning and Coordination
2.3.1 The country’s transport policy aims at putting in place an efficient transport system providing high quality, least cost services. The expression of this policy is reflected in the major orientations of the Government since the 9th Plan namely: (i) modernization of transport capacities and increase in capital productivity; (ii) reduction of the scope of public regulations to allow operators greater freedom to optimize combinations of factors; and (iii) promotion of multi-modal transport as well as the integration of Tunisian transport operators into international networks. This policy has been implemented through different actions taken since 1997 in terms of investments made and ongoing institutional reforms.
2.3.2 Responsibility for the organization, management and coordination of the activities of the transport sector lies with the Ministry of Transport through the General Directorates of Merchant Shipping, (DGMM), Civil Aviation, (DGAC) Land Transport (DGTT), Planning and Research (DGPE) as well as the Merchant Shipping and Ports Authority (OMMP) and Civil Aviation and Airports Authority (OACA). The DGTT oversees the management and operation of land transport. The DGPC of the MEHAT is in charge of the programming, implementation and monitoring of road infrastructure works. With the effective implementation of the institutional reforms identified. MT’s role is to reduce the control and regulation of the transport market by opening it up to the private sector.
3. THE ROAD SUBSECTOR
3.1 The Road Network
3.1.1 The classified road network is considered modern and in good condition. Apart from communal roads, it consists of a total of 81,000 km made up of around 19,117 km of classified roads, 66% of which are paved (12,547 km), 359 km of motorway and 60,000 km of earth roads, including a major network of 5,500 km. The average density is 70 lm/km², but this figure masks an uneven distribution among Governorates, with disparities in the West- Central and South regions where the density ranges from 3 to 7.4 lm/km². In addition to internal urban roads and motorways, the classified road network comprises three categories, namely: (i) national roads (RN) or trunk roads (GP); (ii) regional roads (RR) or secondary roads (MC) and (iii) local roads (LR) or tertiary roads (RVE). National roads link the borders of the country; regional roads link two or more regions whereas local roads link local or farming communities. Motorways are classified among the national roads (RN). Express roads, which are roads or sections of roads that are only accessible at points that have been developed for the purpose, are classified as State public roads in one of the three categories mentioned above.
3.1.2 Despite its considerable paved length, the road network does not provide a level of service considered adequate in terms of capacity in relation to traffic flows. Indeed, the roads which seem to be better adapted to traffic needs (for they have graded carriageways with 2 or more lanes or 2 separated carriageways) currently total less than 50% of the paved network (6,000 km), whereas a little over 50% (6,890 km) requires capacity building works. 4
Moreover, nearly 2,500 km (21%) of roads are threatened with degradation, as a result of: (i) the increase in heavy traffic at a higher rate than the average traffic for all types of vehicle; (ii) the age of carriageways (over 40 years old) which are structurally undersized in relation to current traffic flows; and (iii) inadequate drainage systems of the road platforms making them highly vulnerable to flooding. The outputs of the 2 previous Plans have helped to remove these constraints by lowering the proportion of less-than-7m-wide roads from 70% to 50%. Investments planned under the 11th Plan will make it possible to bring this proportion down to almost 25%.
3.2 Traffic, Motor Vehicle Fleet, and Road Safety
3.2.1 Traffic: Vehicle counts are conducted every 5 years. The 2007 counts are not yet available. The last counts, dating from 2002, indicate an annual average growth rate of 6.1% on the entire classified network compared to 1997 and 6.5% compared to 1992. Light vehicle traffic grew by 6.2% and 6.6% in 2002 in relation to 1997 and 1992 respectively, compared to 5.5% and 6.3% for heavy vehicles. The share of light vehicles in overall traffic has virtually stabilized since 1992, at around 86.5%, albeit with an increase in the distances of private cars and a decrease in that of vans (P<1.5t) and light trucks (P<3.5t). With regard to heavy vehicles (whose share has stagnated at 13.5% of the overall traffic since 1992), their structure has evolved with an increase in the proportion of articulated vehicles (trucks + trailers and tractors + semi-trailers). This increase has resulted in a reduction in the capacity of roads, acceleration in the deterioration of the structure of carriageways and increased risks of accidents as well as their gravity. The detailed structure of the traffic in interurban area on the various trunk roads of the national network, based on the 2002 counts, is as follows: private cars (including hired cars): 52%, vans: 27%, light trucks: 8%, heavy trucks: 6%, articulated trucks: 5% and public transport 2%. The results of the 2002 survey indicate that average daily traffic is higher than 3,000 vehicles/day for 41.5% of the road network and is lower than 750 vehicles/day on 16.1% of the network. Average daily traffic on the entire network is 4,539 vehicles, and the highest traffic is recorded on the trunk roads of the Governorates of Tunis (42,460 vehicles/day on average), Ben Arous (17,289 vehicles/day), Ariana (16,460 vehicles/day) and Sousse (9,581 vehicles/day).
3.2.2 The Motor Vehicle Fleet: Data from vehicle registration records indicate that there were 993,000 vehicles (excluding 2-wheel vehicles) at the end of 2002, whereas the fleet of vehicles on the road stood at 824,000 vehicles (that is, 83% of the registered fleet) two-thirds of which, that is, 552,000 vehicles, were used for the transportation of passengers (private cars, shared taxis and coaches) and 272,000 for the haulage of goods (vans, trucks and agricultural tractors). The vehicle fleet grew at an annual average rate of 7.4% over the 1992- 2002 period, thus reflecting the policy of modernization of the fleet pursued by the Government (liberalization of imports and reduction of customs duties) which also contributed significantly to its rejuvenation (average age between 6 and 8 years).
3.2.3 Road Safety: Accidents on Tunisian roads have a very high economic and social cost (fatalities, temporary and permanent impairment as well as material damage) estimated in monetary terms at around TND 200 million/yr over the last five years. The preliminary analysis of the causes of accidents pointed to the behaviour of users (95.5%) followed by the condition of vehicles (3.5%) and the state of the roads (0.7%). Several measures have been taken by the authorities and Tunisian associations to reduce traffic accidents (awareness campaigns on roads and in the mass media, systematic speed checks and enforcement of the Highway Code, etc.). Under the ongoing Road Project IV the Bank proposed to finance with 5 a grant from the Technical Assistance Fund for Middle Income Countries (MIC-TAF), a study on road safety whose findings and recommendations will be discussed in a national seminar aimed at drawing up a plan of action. Consultation meetings have already been held at government level for the preparation of the study terms of reference. Concrete proposals have been drawn up regarding the effective approach to be adopted for this study.
3.3 The Road Transport Industry
3.3.1 Inter-city public passenger transport is provided by coaches on regular inter-city routes and shared taxis. Regular inter-city coach services are run by 14 public operators and one private operator. The public operators are: (i) the National Inter-city Transport Company (SNTRI), for long distance inter-city transport (> 40 km), in particular between Tunis and the capitals of the Governorates; and (ii) 12 Regional Transport Companies (SRT), covering 20 out of the 24 Governorates which, apart from urban transport within the communes or Governorates, provide inter-city services on routes linking neighbouring Governorates. Since the beginning of 2004, a private company has been operating 5 routes1 following concessionary rights granted on a competitive basis by the SNTRI. The experience of concessioning intercity coach routes will be pursued by the Government during the Plan in order to foster ever higher participation in interurban transport of persons and the strengthening of the 12 RTC to facilitate their specialization in urban, sub-urban and school transport.
3.3.2 Freight transport is fully liberalized to the extent that currently there are over 250 transport companies (individual and structured companies) operating on behalf of third parties. This activity is currently characterized by: (i) predominance of low tonnage vehicles (71% of vehicle traffic for 18% of T/K transported) to the detriment of heavy tonnage vehicles (29% of vehicle traffic for 82% of T/K transported); (ii) a fairly balanced distribution of road transport demand (expressed in terms of tonnes/kilometres) between self- owned transport and third party-owned transport (49% and 51% respectively of the total demand)2; (iii) high deadhead rates (46% for trucks and articulated trucks). The authorities recently took several measures to reorganize the sector and improve its performance, in particular by: (i) the encouragement of private operators to put in place freight centres to optimize the journeys of trucks and thereby reduce deadhead rates; (ii) an in-depth discussion on the setting up of logistical platforms in the main regions of the country; and (iii) the initiation of discussions on the restructuring of port infrastructure required by the Government’s policy on the granting of concessions for terminals and the introduction of transshipment in the country.
3.4 Road Network Administration and Staff Training
Road Network Administration
3.4.1 The State classified road network administration is the responsibility of MEHAT through a central directorate, namely the General Directorate of Civil Engineering (DGPC) in charge of the design, programming, implementation of the national strategy and policy on infrastructure, as well as the maintenance and operation of the road network. The DGPC is organized into central services headed by directors; namely the Directorate of Research (DE),
1 Tunis-Kalaa Khasba, Tunis-Djerba, Tunis-Nefta, Tunis-Medenine and Sfax-Kasserine 2 Including 5% for international traffic. 6 the Directorate for Project Programming and Monitoring (DP), and the Directorate for Major Projects (DGT), the Directorate for Road Operation and Maintenance (DEER), the Directorate for Plant and Equipment (DM) and the Directorate for Technical Upgrading (DPT).
3.4.2 The DE is in charge of the formulation and monitoring of project designs, up to the award of the different related contracts. The DP sees to the programming of road investments, coordination with donors, administers tender contracts and oversees their financial monitoring with the DGT, which supervises works in liaison with the different Regional Directorates (DREHAT). To facilitate the management and monitoring of projects financed by the principal financial partners, the DGPC has project implementation units created for that purpose and headed by Project Managers. DEER defines the general maintenance framework, makes budgetary allocations for maintenance among the DREHATs and carries out an analytical monitoring of expenditure as well as the inspection of the works. The DM manages the plant pool needed for the implementation of works through its central workshop of Tunis (for major repairs of equipment and other plant) and its regional workshops (for periodic maintenance). The DPT is responsible for the upgrading, retraining and improvement of the technical and manual personnel.
3.4.3 Staff and Training: MEHAT has a total staff of 6,291 made up of 2,271 civil servants and 4,020 workers distributed in the central administration as follows: 1,099 staff and 5,192 staff for the regional directorates. The staff complement of the DGPC is 375 and over half of those assigned to the management and maintenance of the road network are labourers. The staff is recruited on a competitive basis in order to maintain a satisfactory overall and professional standard. The engineers and other supervisory staff come from institutes of higher learning and the national engineering college of Tunis or recognized foreign universities or institutions. Training activities, which are in the form of seminars and short courses both in Tunisia and abroad, are financed either through the DPTs own allocations or from grants awarded by the different development partners.
3.5 Road Maintenance: The maintenance of the classified network (19,000 km) and major agricultural feeder roads (5,500km) as well as 26/26 feeder roads (4,146km) is the responsibility of MEHAT through the DEER to the DGPC and the regional civil engineering services of DREHAT. The operations cover routine maintenance works (local maintenance of paved roads, realignment of shoulders of paved roads and roadways of unpaved roads, clearing of sand from Southern roads, cleansing of ditches, structures, etc.), periodic maintenance (resurfacing of unpaved roads and shoulders of paved roads, resurfacing of carriageways) and various operations relating to road operations (maintenance of equipment, signs, elimination of death traps and areas prone to flooding, etc.). Routine maintenance operations are conducted on force account but, some tasks (realignment of shoulders of paved roads, roadways of unpaved roads) are increasingly being carried out on a contract basis. A review of the annual assessments of works over the 2002-2006 period shows that maintenance was of good quality, more regular and with greater coverage of the rural network. The maintenance budget for the period rose from TND 33.4 to 41.0 million or an average annual rate of 2.4%.
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3.6 Financing of Road Investments and Maintenance
3.6.1 The financing of road investments and maintenance of infrastructure is covered from the road budget under the national five-year plans. The road budget comprises 2 parts, namely Chapter I containing allocations for infrastructure maintenance and Chapter II (or capital budget) whose resources come from road investment financing, in particular the road network development, rehabilitation and modernization works as well as major road strengthening works. Road investment expenditure reached a cumulative amount of TND 2,969.67 million during the 10th Plan (2002-2006). Table 3.1 below summarizes the budget allocations for road infrastructure and their breakdown by financing source for the 10th and 11th Plans.
Table 3.1a: Road Budgets –Actual – (million TND)
Description 10th Plan (2002-2006) 2002 2003 2004 2005 2006 Total Share 1.) Chapter I : Infrastructure Maintenance- 33.00 36.40 38.80 40.20 41.00 189.40 11.7% Allocation 2) Chapter II: Capital Budget Budget 154.92 167.03 165.00 162.00 200.00 849.95 52.7% Off Budget (external financing) 125.40 81.81 111.20 127.00 318.00 763.41 47.3% Chapter II Total (current 2000 TND 280.32 248.84 276.20 289.00 518.00 1.612.36 100% million) Source: DGPC, MEHAT Table 3.1b: Road Budgets (million TND)
Description 11th Plan (2007-2011) 2007 2008 2009 2010 2011 Total Share 1.) Chapter I : Infrastructure Maintenance- 44.80 48.30 50.80 53.50 56.40 253.80 10.7% Allocation 2) Chapter II: Capital Budget Budget 83.90 405.40 336.30 91.50 335.50 1252.60 52.7% Off Budget (external financing) - 371.30 450.00 301.10 - 1122.40 47.3% Chapter II total (current 2006 TND million) 83.90 776.70 786.30 392.60 335.50 2375.00 100% Source: DGPC, MEHAT
3.6.2 For the period of the 11th Plan (2007-2011), the road budget stands at TND 2,375 million, i.e. an increase of around 47.3% compared to its 10th Plan level. The share of external financing (non-budget) is expected to rise from TND 763.41 million to TND 1,122.40 million with a proportion stabilized at 47.3%. This programme covers the same principal components as those of the 10th Plan, namely: (i) improvement (rehabilitation and widening) of 1,900 km of classified roads; (ii) strengthening of 2,000 km of classified roads; (iii) regional development (400 km of rural roads); (iv) construction of 66 highway structures; (v) development of urban roads; (vi) the Greater Tunis road network; (vii) improvement and surfacing of agricultural feeder roads; and (viii) extension of the motorway programme. The Bank’s assistance in this programme will cover all the components with the exception of components (iii) and (viii).
3.6.3 Allocations for road maintenance (excluding wages and wage expenses) under the 10th Plan amounted to TND 189.4 million, that is 11.7% of the total capital budget. In relation to the 9th Plan, allocations show a 52.6% increase, but the proportion remains stable compared to the level of the capital budget and the total road budget. During the 2002-2006 period, annual allocations grew by 2.4%/yr. However the sharp rise in the cost of works 8 inputs over the past three years has impacted negatively on outputs in respect of maintenance since the price increases were not reflected in the actual allocations over the period under consideration. Thus the actual level of the budget no longer makes it possible to ensure normal maintenance of the road network. In fact, in relation to the total value of the reconstruction work on the paved network alone and excluding the motorways estimated at a little over TND 3,800 million, the maintenance budget remains far below the average ratio of 3 to 4% generally accepted as the standard. Consequently, the Government is invited to make a further effort to increase the annual maintenance budget to TND 63 million by 2012, corresponding to a ratio of around 1.5% in relation to the value of the paved network. A Government undertaking to annually increase road maintenance budget allocations to TND 63 million by 2012 is a loan condition precedent.
3.7 The Road Construction Industry
3.7.1 The building and public works (BPW) industry including the road construction industry constitutes a key strategic sector for the Tunisian economy, in view of its induced effect on economic growth. Indeed, with an annual turnover of over TND 3 billion and estimated 250,000 jobs 50,000 of which are permanent, it ranks as the fourth largest sector of the economy after textiles, industry and agriculture.
3.7.2 The number of approved firms is about 2,000 of which 121 are large (Category 5), 200 medium-sized (category 3 and 4) approved by the national commission, and the remaining 1700 approved at regional level. About 50 category-5 “Roads and Structures” firms have an unlimited authorization ceiling, and nearly 500, including all trades, have a recognized ceiling higher than TND 2 million. They are mostly purely national and their spatial distribution reflects the economic weight of the regions (36% located in the Tunis Region, 26% in Sousse, Sfax and Bizerte and 19% in Nabeul, Mahdia, Monastir and Gabes and 19% in the remaining 15 Governorates.).
3.7.3 In the area of road design services, there are a number of national and foreign consulting firms affiliated to the national association of consultants (ANBEIC). In general, these firms have good professional references and their annual turnover averages TND 50 million 25% of which is from exports. Furthermore, they provide jobs for nearly 2,000 persons including 900 consulting engineers and 750 technicians.
4. THE PROJECT
4.1 Design and Formulation
4.1.1 This project was designed to address the capacity constraints (width of carriageways and their structural condition) of the classified road network which does not at present provide an acceptable level of service in respect of traffic volumes and the rapid growth of heavy traffic, which is responsible for the deterioration of the carriageway structures and a heightened risk of accidents. Indeed, the sections retained under the project were identified on the basis of the mismatch between their current level of service and traffic demand and /or the need to reduce congestion in town centres by creating by-passes. The technical and economic feasibility studies and the different preliminary designs have been reviewed to confirm the viability of the works to be carried out. Their technical design is in conformity with recognized international standards. The geometric characteristics of the developmental road works comply with the standards and the National Instruction on Technical Design Requirements for Urban 9
Express Roads (ICTAVRU). All the technical and economic feasibility studies and bidding documents for the project are available and have been examined to ascertain the viability of the project. The engineering designs chosen were based on international standards; the sizing of the carriageways was based on the method developed by the Directorate of Roads and Road Traffic in France (DRCR) for the various categories of traffic and a range of carriageway structures of the DGPC for the classification of supporting soils. Diagnoses of the carriageways were carried out based on on-site geotechnical studies aimed at determining the characteristics of the supporting soils and the structures of the carriageways. Road roughness measures were conducted to obtain data on the condition of the surfaces. The highway structure works aim to waterproof the classified roads on routes which can be impassable in bad weather conditions.
4.1.2 The project has received the backing of the inhabitants of the Governorates concerned and is an integral part of the investment programme of the 11th Plan for Road Infrastructure. Its implementation is in keeping with the Bank’s operations strategy for Tunisia for the 2007-2011 period. Furthermore, its implementation does not raise any technical and management problems in view of: (i) its similarity with previous projects in the sub-sector which in 2002 and 2005 were ranked by the Bank among its best projects implemented; (ii) the experience and competence of the executing agency in project monitoring and management; as well as its familiarity with the Bank’s procedures.
4.1.3 However, the lessons learnt from the most recent project which is ongoing include the increasing number of works contracts terminated or the withdrawal of firms from participation in bidding for road works because of the spiraling prices of works inputs (asphalt, iron, and fuel, etc.). To mitigate the negative impact of these terminations on project implementation, the Bank agreed to modify the specifications by introducing a price adjustment clause for all future contracts of the project whose implementation periods exceed 12 months instead of 18 months as previously. The advantage of this modification is to: (i) ensure greater transparency in the prices applied by firms; (ii) prevent them from having to bear additional unforeseen costs; and (iii) to harmonize the Bank’s specifications with those of the Government which are accepted by the other financial partners in the sector (EIB, AFESD, JBIC, etc..). With the current surge in the cost of works inputs, this provision has been discussed and will be applied to contracts relating to this project.
4.2 Project Area and Beneficiaries
Project Area
4.2.1 The project area covers 19 of the country’s 24 Governorates including 11 Governorates in the northern region (Bizerte, Tunis, Ariana, Ben Arous, Nabeul, Manouba, Zaghouan, Beja, Jendouba, le Kef, and Siliana), 5 Governorates in the central region (Sousse, Monastir, Mahdia, Kairouan and Sidi Bouzid) and 3 in the southern region (Sfax, Gabes, Medenine). Most of Tunisia’s population lives in the northern and central regions. The Northern region has a total of 651.8 km of roads to be modernized and strengthened (47%) and 9 highway structures to be built (64%) followed by the southern region with 497 km (36%) and 3 highway structures (21.4%) and the central region with 233.8 km (17%) and 2 highway structures (14.3%). The climate is of the Mediterranean type in the north and centre and of the desert type in the south with annual mean temperatures varying between 4°C and 38°C. Average annual rainfall varies from 900mm to 600mm in the north and gradually declines towards the south to between 250mm and 80mm. Vast plains interspersed with 10 valleys dominate the north and centre and contrast with mountain ranges. In the south, the climate is more arid and vegetation is dominated by steppes alternating with palm tree oases where cereals and dates are grown.
4.2.2 In the north and centre, the principal economic activities are industry, tourism, agriculture and fisheries. The industrial activities are generally located on the coast and concern manufacturing in the textile and leather sectors, automobile and electronic components, electrical components, agri-food, chemical and pharmaceutical products and to a lesser extent, mining, quarries and construction materials. The Governorates of Greater Tunis (Tunis, Ariana, Ben Arous and Manouba), Bizerte and Sousse and Monastir are the major economic and industrial centres. The average annual growth of the value added of the manufacturing industry exceeded 5% over the period covered by the 10th Plan. In the area of tourism, the Governorates of the Sahel (Sousse, Monastir and Mahdia) as well as the towns of Hammamet in the Cap Bon region and Tabarka on the North-West coast attract an average of 3.5 million tourists. Hotel capacity is currently estimated at over 180,000 beds with about 30 million person/nights/year and over 150,000 jobs. Agricultural activities comprise the main cereal crops (barley and wheat), tree cultivation (olive trees, citrus tree and vineyards), market gardening, livestock rearing (sheep, goats and cattle) and fishing. During the period covered by the 10th Plan, agricultural sector value added grew by 19% i.e. a 24% increase on the growth rate of the previous Plan. Over the period, cereal crops produced an average of 1.5 million tonnes. With 235,000 tons of citrus and 325 hectolitres of wine, the production of citrus fruit and wine grapes remained virtually stable over the same period. Furthermore, in 2008, over 53 agricultural projects will be launched for an investment of TND 75 million which will make it possible to create another 1000 jobs. Livestock breeding also experienced rapid growth with a production of 120,000 tonnes of meat and 1 million tonnes of fresh milk. The fisheries sector was marked by a number of measures including the diversification and protection of fishery resources (scientific research), promotion of fisheries on the North coast of the country and on the high seas and incentives for new investments as well as improvement of services and strengthening of basic infrastructure (port equipment and roads).
4.2.3 In the south, industrial activity is dominated by the phosphates and by-products industry and oil and gas production. Tourism is also booming with an average growth rate of over 10% per year and nearly 1.8 million of tourists annually in the Governorates of Medenine (Djerba Island and Zarzis) and Tozeur. Saharan tourism in Tozeur and Kebili is increasingly becoming a highly promising niche for the future. Agricultural production mainly concerns cereals, dates and olives. The dominant activities are: (i) agro-pastoral and dates whose average production over the last five years has been 107,000 tonnes.
4.2.4 Project Beneficiaries: The present project will benefit the whole country’s population, particularly the inhabitants of the north-west (Beja, Jendouba, Kef and Siliana), centre (Sousse, Mahdia, Monastir et Kairouan et Sidi Bouzid) and the south-west (Gabes et Medenine) where inadequate basic infrastructure, particularly roads, in the Governorates of Sidi Bouzid, Siliana et Kasserine and certain regions of the south has been the cause of a slower rate of socioeconomic development in relation to coastal areas. Indeed, these areas whose main activities are agriculture and mixed farming, and to a lesser extent industry and services, have the highest unemployment rates in the country (about 20% compared with 16% at the national level). The unemployed are mainly women and young graduates who are increasing in number and are compelled to leave their areas of origin and settle in the coastal cities in search of better living conditions. The planned rehabilitation works will help 11 improve the infrastructure equipment rate and will contribute to opening up remote areas, improve living conditions with expected spillover effects of activities (agro-pastoral, industrial, tourism and handicraft). Indeed in Jendouba, a regional irrigation project will make it possible to extend the irrigated area from 31,000 to 34,000 ha, with a view to diversifying agricultural production and prioritizing high export value-added sub-sectors, with the objective of boosting exports during the 11th Plan and rechanneling them towards the new markets of the Gulf and Asia. The industrial sector is being consolidated in Le Kef and Kairouan with the setting up in le Kef of new plants (cable-manufacturing, cement works at Dahmani, electrical appliances factory) by foreign investments totaling TND 290 million which will create 4,000 new jobs by the end of the 11th Plan. The developmental road works will help to improve traffic in the urban centres while reducing pollutant emissions. Moreover, the Kairouan bypass will serve the 3 ha developed industrial zone which will create 3,000 jobs in cable production for the assembly of vehicles and utility trucks. Similarly, the modernization of the Kairouan-Enfida road section will make it possible to create an express link with the new International Airport of Enfida expected to enter service at end 2009.
4.3 Strategic Context: The project is consistent with the pursuance of the strategy to upgrade the Transport Sector, formulated by the Government since the previous five-year Development Plans aimed at promoting an efficient high quality transport system. The project forms part of the investments planned for road infrastructure under the 11th Plan (2007-2011) and its implementation is consistent with the Bank’s operations strategy for Tunisia set out in the CSP for the period concerned. Its implementation will improve mobility on the classified road network by helping to remove transport constraints relating to the narrowness of carriageways and their structural condition. This will result in an intensification of intra- and inter-regional trade which will have induced effects on the country’s socioeconomic development (increased economic activities resulting from the creation of new business poles, improvement of the living conditions of the communities as a result of the generation of new sources of income, etc).
4.4 Project Objective: The project aims to improve the level of service of the classified road network with a view to intensifying intra-and inter-regional trade and improving the accessibility of the country’s principal development poles.
4.5 Description of Project Outputs
4.5.1 To achieve this objective, the expected outputs are:
(i) Developmental road works to be carried out in 7 Governorates; (ii) Rehabilitation works on 374.1 km of classified roads in 10 Governorates; (iii) Strengthening works on 640.4 km of classified roads in 16 Governorates; and (iv) Constructions works on 14 highway structures (1,750 ml) over the classified network in 11 Governorates.
4.5.2 Development Road Works: these works concern 7 projects comprising 5 dual- carriageway bypasses of towns totaling 36.5 km (Beja : GP6-MC52-GP11 over 4.5 km, Jendouba : GP6-GP17 over 6 km, Sousse : GP1 East at M’Saken over 10 km, Sidi Bouzid : MC125 North – Sidi Bouzid over 6 km, Gabes : GP16 at El Hama over 10 km) and 2 road modernizations totaling 89 km (Zaghouan: two lane GP3 : Jbel Oust–Fahs over 29 km and Sousse-Kairouan : dual carriageway for GP2 over 60 km). With the exception of the Jendouba 12 bypass which will initially be two-lane including embankments then in dual carriageway, all the other links will be 2x2 lanes with a surface dressing reinforced with bituminous gravel (BG) and/or crushed gravel (CG) or simply in humidified reconstituted crushed gravel (HRCG) between 25 and 30 cm thick. These works will also entail the shifting of all the concessionary networks which could encroach upon private property (agricultural land) for which compensation will be provided.
4.5.3 Network Development: These works concern the rehabilitation and widening of the carriageways to 7.60 m or more over 374.1 km of classified roads. The works consist primarily of : (i) waterproofing and recalibrating the carriageways (construction of shoulders on the banks of widened roads); (ii) reinforcement of the carriageway with 25 cm and 35 cm thick bituminous gravel and/or CG or HRCG, depending on the case, at sections where the structure is weak; (iii) laying of asphalt concrete surfacing of an average thickness of 8 cm or any adequate surfacing; (iv) reinforcement of drainage and sanitation structures; and (v) the putting in place of protection and/or safety devices including vertical and horizontal road signs. These works could include the shifting of concessionary networks in the case of widening of carriageways, straightening of the alignment for bends considered to be dangerous while remaining as far as possible within the limits of the road rights- of-way.
4.5.4 Network Reinforcement: These works concern a total length of 640.4 km of classified roads. The improvements are similar to those of the rehabilitation works, but do not include widening since the carriageways are already 7.6m wide or more.
4.5.5 Construction of Highway Structures: The works comprise the diversions to new crossing sites identified, the construction of approach structures and the actual structures which are either slab or girder bridges with reinforced or pre-stressed concrete decks and spans of between 60 to 320 lm.
4.5.6 With the exception of the network reinforcement works, all the other works envisaged require widening or detours of roads which could go over the existing rights-of-way and encroach on private property (mainly in urban or peri-urban areas). Compensation for such expropriation of land for public use is governed by laws and decrees governing the modalities of evaluation and procedures for applying compensatory measures (Law 85-1976 of 11 August 1976). The project has earmarked a financial package of TND 12.38 million to compensate such acquisition of land. The Government’s undertaking to carry out, prior to the start of the road works, the clearing of rights-of-way and pay possible compensation for expropriated lands is a loan condition. Moreover, in some areas where concessionary networks (water, gas and drainage pipes, etc.) encroach upon the width of the platforms to be upgraded, these networks will be moved prior to the start of the road works, for a total estimated amount of TND 13 million.
4.5.7 All the above-mentioned works will be implemented under the effective oversight of the General Directorate of Civil Engineering (DGPC) at MEHAT. DGPC’s services will cover general monitoring and management of the project as well as regular works supervision and quality control. DGPC will be assisted by the Regional Civil Engineering Services (SRPC) of the DREHAT at regional level. Similarly, it will see to geotechnical control of materials and works on all the project sites through an Agreement to be concluded with CETEC (Construction Technical Testing Centre). For the control of developmental road works and works on highway structures, DGPC will recruit technical assistance from certified control firms for the entire works period. 13
4.6 Environmental Impact
4.6.1 Since this project mainly concerns the rehabilitation of roads of the Tunisian classified network which do not affect protected natural areas or entail the large-scale displacement of dwellings, it is classified under ‘Category 2’ in accordance with the Bank’s Environmental Procedures; consequently it only requires the preparation of an Environmental and Social Management Plan (ESMP) which is presented in Annex 3. Similarly, pursuant to Tunisian legislation (Decree No. 2005-1991 of 11/07/2005), road projects of this type (rehabilitation, strengthening of carriageways, and Wadi bridges) are not subject to a detailed environmental impact study, but to simple brief descriptions. The positive impacts identified concern: (i) improved road safety standards (widened carriageways, alignments rectified with optimum curvature radii), (ii) a reduction in land erosion, dust, and vehicle exhaust fumes; (iii) aesthetic landscaping (tree planting). The negative impacts are considered to be minor and concern: i) limited pollution (waste water and solid waste); fuel dumps, the opening and/or operation of quarries with risk of soil erosion. The type of works will only cause transient risks due to traffic diversions, risk of accidents, noise, vibrations and atmospheric pollution, etc. The widening of the carriageways of some sections will require the clearing of rights-of-way which will lead to the acquisition of some land by compensation (cf. paragraph 4.5.6).
4.6.2 The mitigation measures are also set out in Annex 3 and will be taken into consideration in the contractors’ specifications. In the construction phase, they mainly concern the integration in the specifications of the principles of good environmental practices, in particular, measures concerning : (i) personnel management, (ii) conditions of installation and hygiene of site living quarters, iii) the organization of fuel storage depots (control of leakage, explosion or fire risks) including solid (including bituminous) and liquid waste management, iv) the origin of materials (quarries) and their conditions of transport, (v) the regulation of traffic; and (vi) the restoration of sites and dismantling of temporary installations on works completion including the turfing of slopes. In the operational phase, the measures will concern the maintenance of the rehabilitated roads and related structures (drainage channels, slopes, etc.) and the organization of adequate road signalling. Environmental monitoring will be carried out ANPE and DGPC inspectors. The reports submitted will concern supervision and monitoring of the environmental measures, the efficacy of the measures and solutions to unforeseen environmental problems encountered.
4.7 Socioeconomic Impacts
4.7.1 Positive Impacts: The improvements to the road network under the project will help to create high quality transport which is safer and more efficient, resulting in greater mobility of the population and consequently facilitating access to the administrative, socioeconomic and tourist centres. This will lead to an intensification of intra-and inter-regional trade, which will help to strengthen the regional economy, especially in the regions of the interior where socioeconomic development is less sustained than in coastal areas. Implementation of the project will also help to strengthen agricultural activities, create additional jobs and generate new sources of income. It is estimated that around 10,000 temporary jobs will be created (an average of 100 jobs per site) which will generate incomes for the population of around TND 50 million during works implementation. 14
4.7.2 Negative Impacts: The major negative impacts will be confined to the expropriation of a few plots of land for the widening of carriageways and straightening of the alignments of roads, as well as the increased risk of accidents due to the significantly improved traffic conditions of the road network. An appropriate budget package is envisaged for compensation for land expropriation. With regard to the increased risk of accidents, it is planned to put in place appropriate horizontal and vertical signalling, and systematically organize road safety sensitization campaigns.
4.7.3 Impact on Women: The project will support the activities mentioned above, and particularly benefit vulnerable groups of society, especially women, who represent around 50% of the entire population and 21% of the labour force. At the national level, women already represent 43% of wage earners in the manufacturing sectors (77% of whom are in textile and leather industries, and 11% in agri-food businesses). The proportion of women in agricultural activities is currently nearing 1/3 of the labour force (12% of whom manage farms). The manufacturing industry (textile, electronic) and agri-food, handicraft, agriculture, tourism and services sectors are witnessing remarkable development in the Governorates of the South, Central and West regions of the country. These sectors are high employment and income creation sources for women, young people and other vulnerable groups of society. Rural women have been benefiting from various operations, under the regional programme for the advancement of women living in rural areas. These initiatives have focused on the strengthening of women’s vocational skills, consolidation of their role in agricultural, handicraft and manufacturing activities, as well as improvement of their living conditions. By revitalizing sectors that provide employment to rural women and facilitating their transportation (home work) as well as access to care, training and leisure centres, the implementation of the road rehabilitation project will contribute to reducing social inequalities (gender) as well as regional disparities at the economic, social and cultural levels.
4.8 Project Cost: The estimated project cost, net of taxes, is TND 474.82 million (TND 550.73 million, inclusive of tax), i.e. a total net of tax amount of UA 246.15 million (EUR 264.07 million). The cost is broken down into foreign exchange of TND 313.47 million (UA 163.12 million or EUR 175.00 million) and local currency of TND 161.36 million. This total cost was calculated on the basis of the unit costs of similar ongoing contracts in the different regions of the country. Physical contingencies were estimated at an average of 7% of the basic civil works costs. The provision for price escalation was estimated at an average of 8% on the basis of the works implementation schedule. Determination of these costs took into consideration the recommendations of the Study on Unit Construction Costs in Africa conducted by the Bank (cf. Annex 4). The summary of the total estimated project cost, net of taxes, is presented in the following table. For each of the 4 works components, the financing represents 60% of the total works cost, inclusive of tax.
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Table 4.1 Summary of Project Cost Estimates Net of Taxes
In TND million In UA million In EUR million Total Net of Components FE LC Total Total FE LC. Taxes FE LC. Total % Net of Incl Net of . taxes Taxes . . taxes 1. Works 1.1 – Development Road works 101.60 58.50 160.11 185.94 52.67 30.33 83.00 56.51 32.54 89.04 1.2 – Network Development 76.37 35.96 112.32 131.74 39.59 18.64 58.23 42.47 20.00 62.47 1.3 – Network Reinforcement 68.21 28.13 96.35 113.69 35.36 14.58 49.95 37.94 15.65 53.58 1.4 – Construction of Highway Structures 30.80 16.98 47.78 55.62 15.97 8.80 24.77 17.13 9.44 26.57 Total Works 276.99 139.57 416.56 486.98 143.59 72.35 215.95 154.05 77.62 231.67 87.7% 2. Works inspection and Supervision 0.00 6.74 6.74 7.00 0.00 3.49 3.49 0.00 3.75 3.75 1.4% Base Cost (1+2) 276.99 146.31 423.30 493.99 143.59 75.85 219.44 154.05 81.37 235.42 89.1% Physical Contingencies 19.50 8.04 27.54 32.50 10.11 4.17 14.28 10.84 4.47 15.32 Price Escalation 16.98 7.00 23.98 24.24 8.80 3.63 12.43 9.44 3.89 13.34 Total (PhC+PrC) 36.48 15.04 51.52 56.74 18.91 7.80 26.71 20.29 8.37 28.65 10.9% Overall Total 313.47 161.36 474.82 550.73 162.50 83.65 246.15 174.33 89.74 264.07 Percentage 66% 34% 100% 66% 34% 100% 66% 34% 100% Source: DGPC-11P, Feb. 08, UA 1= TND 1.92901; EUR 1= TND 1.79809
4.9 Source of Financing and Expenditure Schedule: The project will be jointly financed by the Government and Bank. ADB’s participation will cover the total project foreign exchange costs, i.e. UA 162.50 million, corresponding to 66% of the total project cost net of taxes. The Government will bear the local currency costs, i.e. TND 161.36 million representing 34% of the total cost net of taxes. The following tables summarize the project financing plan by source and the disbursement schedule, as well as cost by expenditure category. Bank financing will cover the foreign exchange costs of the works, representing 72% of the cost, net of taxes, of the said works on the basis of a VAT rate of 18% (or 60% of the actual works costs, inclusive of tax).
Table 4.2 Financing Plan and Estimated Disbursement Schedule (UA million)
Source Year 2009 2010 2011 2012 2013 Total % ADB 27.70 68.76 34.05 22.50 9.49 162.50 66% Government 14.26 35.39 17.53 11.58 4.89 83.65 34% Total 41.96 104.15 51.58 34.08 14.38 246.15 100% % Disbursed 17.0% 42.3% 21.0% 13.8% 5.8% 100% Cumulative annual disbursements 17.0% 59.4% 80.3% 94.2% 100%
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Table 4.3 Summary of Net of Tax Cost by Expenditure Category
In million UA ADB Financing FE LC Total FE LC Total 1. Clearing of rights-of-way and Moving of Concessionary Networks. 13.13 13.13 0 0 2. Works 2.1 – Development Road Works 52.67 21.72 74.39 52.67 52.67 2.2 – Network Development 39.59 16.33 55.92 39.59 39.59 2.3 – Network Reinforcement 35.36 14.58 49.95 35.36 35.36 2.4 - Construction of Highway Structures 15.97 6.59 22.55 15.97 15.97 Total Works 143.59 59.22 202.81 143.59 0.00 143.59 3. Works Inspection and Supervision 0.00 3.49 3.49 0.00 0.00 Base Cost (1+2+3) 143.59 75.85 219.44 143.59 0.00 143.59 Physical Contingencies 10.11 4.17 14.28 10.11 10.11 Price Escalation 8.80 3.63 12.43 8.80 8.80 Total (PhC+PrC) 18.91 7.80 26.71 18.91 0.00 18.91 Overall Total 162.50 83.65 246.15 162.50 0.00 162.50 Percentage 66% 34% 100% 100% 66%
5. PROJECT IMPLEMENTATION
5.1 Executing Agency: The project executing agency will be MEHAT, more specifically DGPC which has competent and experienced staff who have demonstrated their ‘know-how’ in the implementation of previous projects. Also, its current organizational structure will enable it to ensure the management and monitoring of the project activities.
5.2 Institutional Arrangements: As indicated in 5.1 above and in paragraph 3.4, DGPC is organized to cater for the management of all the implementation phases of project (procurement, contract administration, works monitoring, status report preparation and coordination with the Bank etc.). It also has a unit in charge of implementation of ADB projects which is well-resources and headed by a highly experienced engineer. This institutional arrangement for project monitoring and management has demonstrated its effectiveness in the implementation of previous projects and is likely to ensure the successful implementation of the project.
5.3 Implementation Schedule and Supervision: The project will be implemented over a 60-month period as from the estimated date of approval of the related loan in May 2008. The remainder of 2008 will be dedicated to the preparation of the specifications and the launching and opening of the first bids. The actual works will start from 2009, and the estimated date for the physical completion of all the components is no later than the first half of 2013. Thus the loan closure date is set at 3 December 2013. The implementation schedule for the different activities is presented in Annex 5.
5.4 Procurement Arrangements: All procurements of goods, works and services will be made in accordance with the relevant Bank rules of procedure using the appropriate standard bidding documents. The arrangements for these different procurements, as well as the related estimated costs, are summarized in Annex 6. 17
5.5 Disbursement Arrangements: The loan will be disbursed on the basis of the list of expenditure categories. Disbursements will be made according to the procedures stipulated in the ADB Disbursement Manual. In view of the high number of contracts to be managed and in order to maintain a satisfactory works implementation rate, disbursements will be mainly made from a special project account opened at the Central Bank of Tunisia (BCT). Replenishment of this account will be on the basis of forecast expenditure over a maximum of six months, to be justified, in accordance with the Bank’s procedure governing special and revolving funds.
5.6 Monitoring and Evaluation: For the regular monitoring and control of the project works, the DGPC will submit project activity reports to the Bank on a half-yearly basis. These reports will also be based, in particular, on data provided in progress reports on ongoing works prepared by the SRPC. To ensure the smooth implementation of the project, the Bank will also carry out 2 supervision missions annually. At the end of the implementation of the project, the DGPC will prepare a project completion report, which will constitute the reference document for the preparation of the Bank’s project completion report.
5.7 Audit Reports: The project will be audited by the General Controller of Finance (CGF) of the Ministry of Finance, which is responsible for auditing the accounts of projects managed by the public administration. Audit services for previous projects were assessed by the Bank, which deemed them to be acceptable but noted room for improvement, in particular the need to keep separate accounts and accounting system for the loan resources, preparation of summary statements in the form of a Flow of Funds Table and Income-Expenditure table accompanied by explanatory notes on the contents of the various items of these statements. These improvements will be incorporated in the new audit terms of reference.
5.8 Coordination with the Other Donors: The interventions of the different donors are incorporated into the different five-year Development Plans and in general, the areas of intervention are determined by the Government. In the search for financing, the cost of resources is an essential factor and, in general, the Government gives priority to concessional or discounted and more attractive resources. The coordination of the activities of the various donors forms part of information exchange through regular contacts with the various institutions and during missions (supervision, appraisal and preparation of strategy papers). In the road sub-sector, ADB intervenes in financing the rehabilitation of the classified road network, the road reinforcement and highway structure construction programme; EIB finances developmental road works in major towns and motorways with AFESD and JBIC. IDB and IBRD intervene in the rural roads programme and filling the gaps in the regional road network.
5.9 Performance of the Bank’s Portfolio and Lessons Learnt
5.9.1 The Bank has financed 92 loan operations in Tunisia and two studies on grants from the Technical Assistance Fund for Middle Income Countries (MIC-TAF) for total net commitments of UA 3,401.97, including UA 120.6 million for the private sector. In all, 81 operations and 2 studies have been completed, giving a total disbursement rate of 88.94%. The sectoral breakdown of total commitments as at end of April 2008 shows the predominance of the financial sector (43.06%), followed by the transport (14.33%), agriculture (9.54%), public utilities (6.71%), industry (5.84%) and social (3.42%) sectors.
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5.9.2 As mentioned in Annex 8, the active portfolio comprises 11 projects distributed by sector as follows: (i) 5 agricultural sector projects; (ii) 3 transport sector projects; (iii) 1 public utilities sector project; (iv) 1 industrial project; and (v) 1 Education (Social) project. These projects received ADB financing, with total net commitments of UA 585.07 million, and the total disbursements stand at UA 384.15 million, corresponding to a disbursement rate of 60.53%. The average age of ongoing projects is 4 years, and project implementation is generally satisfactory. This assessment is confirmed by the most recent portfolio review prepared in 2005, which concluded that there had been a significant improvement in portfolio performance since 2001 with an overall rating of 2.53 out of 3. This favourable trend in portfolio performance stems mainly from the intensification of dialogue and monitoring of the implementation of ongoing projects since the Bank relocated to Tunis in 2003.
5.9.3 The key lessons to be learnt from the implementation of Bank operations in Tunisia include the need to: (i) improve the quality of supervision by strengthening the Bank’s mission teams, in particular for multiple-component projects; and (ii) improve familiarization of executing agency senior staff with the Bank’s procurement and disbursement rules of procedure, as well as with its financial products through the regular organization of workshops on these themes. Finally, though considerable efforts have been made towards ensuring greater flexibility in the procedures for the procurement of goods and works required for the implementation of its projects, the Bank needs to harmonize its procurement procedures with those of Tunisia and other partners in order to enhance the efficacy of its projects.
6. PROJECT SUSTAINABILITY AND RISKS
6.1 Recurrent Costs: The recurrent costs of the project mainly consist of maintenance costs following the commissioning of the various rehabilitated road sections and the highway structures built. Thus, in accordance with the maintenance tasks included and implemented under the maintenance programme of MEHAT, and based on the maintenance strategy adopted, expenditure for the routine maintenance of 1,267.5 km of developed roads is estimated at TND 228,150.000 based on an annual maintenance cost of TND 180/km, that is about 0.5% of the maintenance budget for 2007. This amount is low and significantly below the annual maintenance budget growth rate of 2.4%/year for the 1992-2006 period. Periodic maintenance will consist in the resurfacing of relevant road sections at the rate of 10 and 4 years for BC or enriched BG (1,042.5km) and surface dressing - SD (225km) respectively. Thus, the cost of periodic maintenance of the project road sections is estimated at TND 190.47 million, comprising TND 187.650 million and TND 2,588 million for surfacing in BC (1,042.5 km, 180,000 TND/km) and in SD (225 km with half in single layer dressing and half in double layer dressing for respective costs of 13,000 TND per kilometre and 20,000 TND/km) respectively. These unit costs include all the necessary works, notably resurfacing of the shoulders and the laying of a priming coat for the surface dressing.
6.2 Project Sustainability: The sustainability of the project is assured in view of the fact that the maintenance of the rehabilitated road sections forming part of the State classified network will be included in the maintenance expenditures of the MEHAT road budget. As indicated in paragraph 6.1 above, the road maintenance budget has been growing substantially since 1997 (9.7%/year on average over the 1997-2004 period) and 4.9% per year since 2004. Moreover, the maintenance works will be based on the maintenance strategy defined in 6.1 above and on professional standards in view of the existence of an increasingly enhanced system of works inspection at DREHAT level. In order to address the 19 sharp increase in prices of works inputs (asphalt, fuel, etc.), the Government will need to make efforts, as requested in the loan conditions, to increase budget allocations so as to mitigate the impact of these spiraling prices on the maintenance of the classified road network. Furthermore, in order to preserve the carriageways and ensure the safety of users, weighing campaigns are regularly conducted to check the weight of heavy vehicles. The Government’s recent decision to further strengthen the control of excess loads on heavy vehicles on the roads augurs well for the sustainability of the investments made.
6.3 Major Risks and Mitigation Measures: The physical implementation of the project and achievement of its expected objectives essentially depend on strict compliance with the works implementation schedules established by the DGPC. Regarding the implementation of works, the only risk that could affect it will be the likely delay in clearing road rights-of-way, especially by the concessionaries who will have to move their respective networks (water, electricity, telephone, etc.) on the sections concerned. During the preparation of the detailed project designs, all the concessionaries were contacted and the estimated costs of the displacement of the networks were included in the estimated total cost of the works. The Government will provide the necessary credits for the network displacement works prior to the start-up of the actual road works. These measures will contribute to reducing the risk related to slippage on works implementation. It is worth noting that when similar arrangements were made in the implementation of previous projects, no difficulties were encountered.
7. PROJECT BENEFITS
7.1 Economic Analysis
7.1.1 Background: The Government has decided to prioritize the preservation and modification of the road infrastructure to meet traffic demand, as well as the necessary support measures to improve its use and improve safety for the users. Thus, the implementation of this strategy will consist in ensuring appropriate maintenance on the classified national network and focusing on relatively heavy traffic road sections by widening them to over 7 m and reinforcing them. The main benefits of the maintenance investment relate to reductions in vehicle operating costs and travel times. Details of the economic analysis are given in Annex 7.
7.1.2 The economic analysis of the different project components was based on the HDM IV model for all road sections in the open countryside. For sections located in the urban areas of major towns, the EMME/23 model was used to estimate future traffic and determine the principal parameters necessary for the economic analysis (PCU-km and PCU-hour)4 This is based on the cost-benefit analysis, which consists in comparing, for the different roads, the project situation (on completion of the works) with the benchmark situation in which the current level of development is maintained.
3 EMME/2 : Equilibrium Model, version 2 4 PCU : Passenger Car Unit 20
7.1.3 Traffic Forecasts: Traffic recorded over the 1997-2002 period and estimated traffic on project roads by 2009 and 2019 are presented for all project sections in Annex 7. The results presented indicate that: (i) traffic increased between 1997 and 2002 by between 3.1% and 26.3% per year; and (ii) traffic is expected to increase between 2009 and 2019 at rates of between 3.7% and 8.7% per year.
7.1.4 Vehicle Operating Costs: Five categories of vehicles, representative of the Tunisian motor vehicle fleet, were used. These categories are private cars, light vehicles, heavy vehicles, articulated trucks and coaches. The operating costs were calculated on the basis of the unit costs of the different cost items, namely: (i) variable costs in proportion to the mileage, therefore directly linked to speed and traffic conditions (consumption of fuel, lubricant, tyres and maintenance and repairs); and (ii) fixed costs related to vehicle ownership and the hours of use (depreciation and interest on capital invested, insurance, wage costs in the case of commercial vehicles, management costs and road taxes).
7.1.5 Maintenance Costs: Maintenance costs are based on prices applied by DGPC in the different regions. They average at TND 180/km/yr for routine maintenance and, vary for periodic maintenance, depending on the road condition of each region concerned.
7.1.6 Investment Costs: The development costs of the project roads are economic costs (exclusive of taxes and subsidies). They comprise: (i) the costs of the construction and/or maintenance (current and periodic) works; (ii) consultancy services in respect of works inspection; (iii) possible network diversions; and (iv) expropriations. These prices are based on engineering designs prepared by consulting firms on behalf of MEHAT for each of the roads concerned.
7.1.7 Project Benefits: The project’s economic benefits stem mainly from the savings made in respect of vehicle operating costs and lower maintenance costs. Time saving was also taken into account in the economic analysis in view of the significant reduction in journey times. This will be perceptible following the improved geometric characteristics of all the project road sections, which will affect the basic speed rate. The economic benefits for all road sections and structures are indicated in Annex 7. For the entire project, these benefits are as follows for the 2009 – 2029 period:
Table 7.1:Benefits (in TND) over the 2009-2029 period
Vehicle Operating Costs Time Saving Total 1,793, 014, 611 302,035, 844 2,095, 050,455
7.1.8 Economic Rate of Return: The economic rate of return was calculated on the basis of traffic factors, the amount of works (net of taxes and duties), inspection, as well as current and periodic maintenance costs. All the project road sections are expected to be commissioned in 2009. The period of economic analysis considered for all the project roads is 20 years. A residual investment value of between 20% and 30% depending on the type of development works (dual layer and BC) was retained at the end of the analysis. The results of the economic rate of return (benefits for the 2009-2019 period as well as the EIRR of the different project road sections) are presented in the Annex. These results show that: (i) the reduction in vehicle operating costs (VOC) represents 85.6% of the total benefits, whereas 21 time saving represents the remainder (14.4%); and (ii) the IRR vary between 13.7% and 34.9%. For the entire project, the IRR stands at 18.9%.
7.2 Social Impact Analysis: The implementation of the project has been welcomed by the beneficiaries in view of its undeniable social and economic impacts, including in particular: (i) increase in the creation of road infrastructure, especially in the north-west and south-west regions of the country, and facilitation of access to socio-economic infrastructure and the different centres of activity; (ii) the creation of many temporary jobs by the work sites; (iii) the creation of new opportunities in all sectors of the economy: development of agriculture through improved outlets for farm, fishery and agro-pastoral products; improved productivity in the textile industry (Sahel Region), development of tourism (Mahdia, Monastir) and handcraft (Kairouan, and Gafsa) activities. The proportion of women in all sectors of activity is growing significantly – particularly in the textile, tourism and handcraft industries – and, together with the youths, they represent the prime beneficiaries of the project; and (iv) diversification of the tourist product, which is one of pillars of the national economy: Saharan tourism (Kebili, Douz and Tozeur), archaeological (Kef, Beja), thermal therapy (Nabeul) and, consequently the promotion of handcraft activities which are closely linked to tourism.
7.3 Sensitivity Analysis: The sensitivity analysis was carried out by increasing and/or reducing the project investment costs and/or benefits. A sensitivity test was also conducted by cancelling the time value. The IERR values for the most unfavourable sensitivity case scenario (+10% for benefits, -10% for investments and time value zero) vary between 9.2% and 26%. Also, for this last scenario, the IERR for the entire project is 16.1%.
8. CONCLUSIONS AND RECOMMENDATIONS
8.1 Conclusions: The implementation of the project is consistent with the national strategy for upgrading transport infrastructure for the period of the 11th Plan (2007-2011). It will contribute to safeguarding the existing road network, while improving the state of the infrastructure, thereby fostering intra- and inter-regional trade and reducing regional disparities. This will result in greater complementarity of road transport with the other modes of transport, and contribute to enhancing the competitiveness of the country by lowering transport costs. The project is economically viable, and its implementation will not have any major negative impact on the environment; furthermore, appropriate measures will be taken during works implementation to minimize such impacts that could affect the population.
8.2 Recommendations: It is recommended that a loan not exceeding UA 162.50 million be granted to Tunisia for the implementation of the project as described in the report. Apart from the usual conditions of the Bank Group, the loan will be subject to the following special conditions.
A Conditions Precedent to Effectiveness of the Loan Agreement: Effectiveness of the Loan Agreement will be subject to the fulfilment by the Borrower, to the satisfaction of the Bank, of the conditions set out in Section 5.01 of the General Conditions.
B Other Conditions: In addition to the above conditions precedent to effectiveness of the Loan Agreement, the Borrower shall fulfil the following conditions to the satisfaction of the Bank:
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(i) increase the classified road network maintenance budget annually to a level exceeding the inflation rate for the previous year to reach an amount of TND 63 million by 2012 (para 3.6.3); and
(ii) ensure, prior to the start up of the development road works, the rehabilitation works and construction of highway structures, the appropriate compensation for the effective clearing of the rights-of-way in the event of changes to the alignment/and or widening of the roads concerned (para. 4.5.6).
ANNEX 1
REPUBLIC OF TUNISIA MINISTRY OF INFRASTRUCTURE, HOUSING AND REGIONAL PLANNING GENERAL DIRECTORATE OF CIVIL ENGINEERING ADB PROGRAMME 5
ANNEX 2
REPUBLIC OF TUNISIA ROAD PROJECT V PROJECT COMPLETION REPORT
REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT ANNEX 3 Page 1 of 7 SUMMARY OF THE ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN
Name of Project: Road Project V Project Number: Country: Tunisia Department: OINF Division: OINF2
a) Brief Description of Project and Main Environmental and Social Components The Project concerns the upgrading of road infrastructure with a view to ensuring a safer, more efficient, high quality transport system. The road improvements concern the development of bypasses of the major towns, the improvement (rehabilitation and widening of carriageways to 7.6 m or more); strengthening of 1144 km of classified roads and the construction of 14 highway structures with spans of between 60 and 300lm. The project is classified in the ADB’s social and environmental category 2.
b) Principal Impacts on Society and the Environment
Positive Impacts
- The improvement of the classified road network will make the traffic more fluid, facilitate travel as well as access to administrative, economic, medical and tourist centres, and stimulate inter-regional trade. The project will contribute to achieving the Government’s objectives of economic growth, social development and inter-regional balance. - The project will support integrated rural development programmes, cultural, ecological and Saharan tourism projects. - The improvement of hydraulic structures and storm water drainage networks will contribute to the protection of surface and ground water resources as well as soil erosion control. - The environmental improvement of road verges will improve the aesthetics of the roads and reduce the level of noise and light pollution. - The modification of some road alignments, curves and longitudinal sections as well as the establishment of a more efficient signalling system will help address the growing demand for improved road safety.
Inconveniences and Temporary Hazards for Residents
- The works will create temporary inconveniences for the residents (noise, vibrations and atmospheric pollution) resulting from the movement of heavy equipment and machinery and the transportation of materials. This slight temporary degradation of the quality of the air should not have any significant impact on public health. - The works will cause temporary slowing down, disturbances and diversion of traffic as well as risks of accidents.
Project-related Risks
- There will be risks of pollution of wadis and/or ground water resulting from accidental discharge of used oil and fuel or run-off on stored materials. - In some mountainous areas, there could be risks of erosion on rights-of-way (landslides or landslips). It will be necessary to guard against fire risks in the forest areas and make provision for their management. - In some regions without sufficient water resources, there could be additional pressure on water reserves intended for the population. However, the works will not affect any water catchments or aquifer.
ANNEX 3 Page 2 of 7
REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT
SUMMARY OF THE ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN
Negative Impacts
Negative Impacts
- The use of a few existing or new borrow pits can increase soil erosion. Non-rehabilitated borrow pits foster the stagnation of unclean water and proliferation of vectors of diseases such as mosquitoes. - Bitumen plants also present risks of pollution of ground water in addition to air pollution from dust and combustion- related toxic gas emissions. - Living areas on the work sites can generate limited pollution from wastewater or poor waste management. - In view of the fact that the proposed works will be limited to existing roads already integrated into their natural environments, the project will not affect natural habitats, plant or wildlife. The project will not have any negative impact on natural parks, biospheric reserves or sensitive or protected areas. - No significant additional degradation of the quality of the abiotic environment (air, water and soils) is expected in the operation of rehabilitated roads. The project will not affect any archaeological, cultural or religious site. - The works will require the displacement of some electrical and telephone networks as well as water pipes, and the destruction of some fences and uprooting of a limited number of trees. - The widening of roads, increase in their capacity and improvement in traffic can result in changes to the current road surroundings. This can have consequences on the population in terms of expropriation of land or road safety. The expropriation of a few plots of land has already been taken into account in the project and a budgetary package has been allocated to compensate the expropriated owners.
c) Optimization and Mitigation Measures
Compensatory Measures Related to Clearing of Rights-of-Way
- Only the expropriation of a few plots and the displacement of some electricity and telephone networks, and water pipes will be necessary. A total of TND 12.38 million, representing 2.1% of the total project cost, has been earmarked for compensation for expropriations and displacement of networks and pipes.
Mitigation Measures during the Works Phase
The duties to be performed by the experts responsible for implementing the mitigation measures and those relating to site and works monitoring on behalf of their firms may be defined as follows:
(i) Worksite Establishment. The worksites will be established in areas with the following characteristics: open enclave sites to which access has been facilitated, not used for agricultural purposes, not close to plantations, archeological or religious sites, natural reserves or public parks; land without unstable slopes. The works contractors will set up their living quarters away form rivers so as to avoid any risk of polluting the resources; no storage yard which could release leachates and interfere with the resources will be authorized within a safety zone; the leachates will be collected and neutralized. Access to the land will be guarded to restrict interaction between the sites and the outside environment. The working hours will be tailored so as to limit any inconvenience to the riparian dwellers. The speed of heavy vehicles will be limited on site and worksites located close to the public highway. (ii) Possible Installation of Fuel and Lubricant Storage Units. The petrochemical product storage units will either be tanks or barrels placed in appropriate confinement areas in order to prevent any discharge or bursting of the tanks and to minimize fire risks. Cleaning equipment has been provided for to deal with any discharge. This equipment will be maintained in excellent condition.
ANNEX 3 Page 3 of 7 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT
SUMMARY OF THE ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN
(iii) Storage of Inflammable Substances The other inflammable products are mainly bitumen, lubricants and other petrochemical byproducts. The storage areas for these materials must have adequate emergency equipment maintained in good operational condition. (iv) Gas Cylinders Oxygen, propane and acetylene intended for welding operations will be stored in a special enclosed area protected from any possibility of an accident with a vehicle. (v) Used Oils and Solvents Used oils will be collected in a tank and disposed of either off-site by the supplier or recycled or incinerated in compliance with ANPE conditions. (vi) Soil contaminated by Fuel or Lubricants A special area will be reserved for the possible treatment of soil contaminated by petroleum products. It will be excavated and placed in the confinement area and decontaminated with solvents. The treated soil will be evacuated to authorized dumps. (vii) Moving out of Expropriated Persons. The buildings, plantations or orchards subject to temporary or permanent clearance measures (expropriation) will be made available to the project prior to works start up in order to prevent any disputes which might delay them. Compensation will be paid to the beneficiaries prior to start up of the sites and works. (viii) Tree- Felling and Hedge-Cutting. The preparation of the worksites might require the cutting of vegetation with a particular ecological value: prior authorizations will be required (ANPE – Min. Agriculture) before cutting. The cut wood must be upgraded. (ix) Earth Movement. The excavation sites (quarries) or those intended for the dumping of surplus bituminous products will be selected so as not to have any landscaping impacts. They will be restored on completion of the works. (x) River Water Harvesting The installation of river water harvesting equipment will be carried out very carefully so as not to cause pollution or ecological damage. On completion of the works the soil will be rehabilitated. The works will be designed so as to protect natural river courses and safeguard the utilization of water by downstream riparian dwellers. (xi) Construction of Bridges and New Road Sections. Several worksites will require civil works. Depending on their volume, water drained from the concrete manufacturing area will be collected in a settling tank with no outlet to the river concerned: the settleable solids contained in the water will be recovered and the dry matter deposited in a controlled or authorized dump. (xii) Erosion Risks and Evaluation of Soil Stability. In view of the natural downward slope of some sites, risks of water erosion could be identified (rainwater run-off and management of works effluents). The contractors will monitor the soil stability trend; this will entail the identification of those areas of their sites/works prone to erosion before and after construction work. Drainage will be installed and physical and/or biological slope stabilization techniques applied (gabions, small walls, tree-planting, etc.). Subsequently, monitoring will make it possible to determine the performance of the techniques applied in terms of soil stabilization. (xiii) Liquid Waste and Risks of Water Pollution. Depending on the size of the sites and works, effluent from the installations will be collected and evacuated on the according to its composition: in waterproof septic tanks or mobile collection systems. The water from washing and maintenance of heavy vehicles could be subject to a water/oil separation treatment; the water will be drained into septic tanks and the oil and bitumen residues will be recycled or destroyed. Any possible storage yards for oil and petroleum products (for the heavy vehicles) will be carefully designed so as to prevent discharge on to the soil or into rivers. (xiv) Solid Waste. As far as possible, solid waste from the worksites will be incinerated on-site if the installations are sufficiently far removed from populated areas and sensitive natural sites. Otherwise they will be transported to authorized dumps.
ANNEX 3 Page 4 of 7 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT
SUMMARY OF THE ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN
(xv) Dust Emission. In order to reduce dust emissions cause by the transportation of materials, the site managers will programme where possible spraying activities on the earth roads crossing inhabited areas. Stocks of backfill or rubble could also be sprayed with water. (xvi) Replanting of the Works Rights-of-Way Tree-planting and seeding will be carried out in the works rights-of-way (after completion) as measures aimed at embellishing work and urban spaces. Supplementary works may be carried out. This monitoring will help prevent erosion on temporarily denuded surfaces. (xvii) Demobilization and Rehabilitation of Work Areas. Special attention should be paid to the natural environment when the work areas are restored. The dismantling of installations will be scheduled and carried out so as to cause the least damage to the natural environment (accidental discharge of waste, dust, noise and vibrations, etc.). The recovery and management of solid residues and waste will be carefully carried out. The rehabilitation of the working areas aims to minimize the residual visual impact of the work sites and restore them as far as possible to their original condition. The rehabilitation works will be implemented on the basis of the aesthetic value: planting for shading, landscaping, etc. (xviii) Reforestation With regard to protective reforestation, the Ministry of Agriculture in charge of Reforestation will use fast-growing local species to protect the specific biodiversity of the zone and to improve timber production from which the local population could possibly benefit (subsequent thinning activities). d) Monitoring Programme and Supplementary Initiatives In accordance with the Tunisian institutional arrangements, responsibility for monitoring the project outputs will be organized and presided over by the Project oversight Ministry which will centralize the observations made by the other Ministries considered to be stakeholders in the project (Min. of Environment, ANPE, Min. of Planning and Regional Development, Min. of Agriculture, etc.). The project management at the Ministry of Infrastructure assisted by a specially-recruited environmentalist and a sociologist will monitor the outputs until works acceptance. Considering that the new Tunisian Environment Code does not require the conduct of environmental impact studies for road rehabilitation projects, ANPE will not be directly involved in the environmental control of the project; ANPE’s action falls mainly within its prerogatives, namely control of nuisances and pollution risks (management of any possible liquid and solid wastes including bituminous waste, etc). The CDRA will manage the forestry aspects (felling of trees and planting of new trees, erosion risks and soil and water conservation (SWC) The environmental surveillance and monitoring programme of the works will be an integral part of the environmental and social reports prepared for each road section by the consulting firms responsible for the preparation of the preliminary and detailed designs. It will also appear in both the Bidding Documents and the Technical Specifications. The project manager will be responsible for taking the environmental and social component of each sub-project into account and will be made accountable to that end. At his initiative, the works implementation contracts will contain a description of penalties which will be applied to Contractors in the event of non-compliance with the environmental and social aspects of the Technical Specifications. The Contractors will refer to the Environmental Assessments to mitigate or offset the risks incurred by the physical, natural and human environment. The Bank’s annual supervision missions will make it possible to evaluate the quality of the project’s social and environmental monitoring.
e) Institutional Arrangements and Capacity Building Requirements The General Directorate of Civil Engineering, which is responsible for the implementation of the Environmental and Social Management Plan, does not have proven human capacities and sufficient technical resources in these two areas to oversee the works both technically and environmentally. Assistance by environmental and social experts could be required in respect of the supervision of sites and works and ascertain the conformity of the project with the general recommendations of ANPE, the Ministry of Environment and the Ministry of Agriculture.
ANNEX 3 Page 5 of 7 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT
SUMMARY OF THE ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN f) Consultations with the Public and Information Dissemination Requirements Under the Environment and Land Codes it is mandatory to adopt the participatory approach procedure in development projects; the project manager, the Ministry of Infrastructure is responsible for its organization. This procedure should be initiated from the project design phase and will continue until final works acceptance. The monitoring programme will incorporate the data contained in the DD and Environmental and Social Impact Assessments; it will mention the types of consultation to be carried out, the project objectives and expected outcomes (development of isolated regions, road safety, SWC works etc.) as well as the perceived environmental and social risks (expropriation, loss of croplands, tree felling, etc.) It will also have to identify the target groups, the appropriate consultation processes, the methods of report production and the results dissemination procedures. ______g) Estimated Cost of Environmental and Social Measures The overall compensatory and optimization costs of the project represent a rate of 2.6% of the project total cost net of taxes or an amount of TND 12.38 earmarked for the clearance of the rights-of-way and the displacement of networks and pipes. The additional cost to cover the participation of an environmentalist in the supervision missions is estimated at TND 50,000. h) Implementation Schedule and Reporting Modalities for assessing and procedures for applying the compensatory and optimization measures are well established and governed by decrees and laws. They will be executed before the commencement of works. Supervision missions, which will include an environmental consultant, will take place annually and culminate in the submission of mission reports.
ANNEX 3 Page 6 of 7 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT
MATRIX OF THE ENVIRONMENTAL AND SOCIAL SURVEILLANCE AND MONITORING PROGRAMME (PGES)
Surveillance Programme Responsibility Monitoring Programme Responsibility Costs
PRE-SITE Land audit; Expropriations clearance – Regional Administration Compliance with land legislation; Verification of Environmental Inspectors; Land Specific Budget not identification of beneficiaries and the smooth conduct of compensations; Registry; Min. of Agriculture evaluated identification of storage areas Works Planning and Organization (works Contractors and specialists Compliance with contract and regulations Ministry of Infrastructure Included in the cost scheduling. Preparation of implementation of works plans, site establishment plans, etc.) Selection of worksites; leasing of land; Contractors and their Compliance with the goals pursued and Environmental Inspectors; Min. of NA Development of access areas specialists legislation on the protection of water resources, Infrastructure ; crops, forests and natural biotopes Obtaining the necessary authorizations for ANPE Compliance with Regulations Regional Planning, ANPE NA works start up Participatory Approach; Communes and town Verification of information provided to Min. Infrastructure, ANPE NA Participation of stakeholders and NGOs ; councils beneficiaries; publication in the media; Local NGOs Claims register available to the public;
WORKSITE AND WORKS PHASE Demarcation and marking out of road rights- Topographers and corporate Conformity with real land requirements for the Min. Infrastructure NA of-way, construction sites, (drainage, bridges, environmentalists organization of works and sites; Environmental Inspectors. waterproofing structure, etc.); identification of Conformity of the expropriations made and Regional Planning; routings for road diversions; identification of compensation paid; Land Registry trees to be felled; Establishment of sites, fuel storage, Contractors and their Conformity with the real land requirements for Environmental Inspectorate Included in the cost preparatory works specialists the organization of works; Regional Planning of works Transport of equipment, misc. materials; Corporate environmentalists; Road traffic and safety; Environmental Inspectorate; Included in the cost storage conditions; highway police; contractors; Condition of soils and ecosystems; Min. Infrastructure of works Possible opening of quarries; Compliance with quarry legislations; Physical risks of accidents on the roads, sites Contractors; highway police; Compliance with the legislation on works and Regional Administration Idem and surroundings; movement of heavy vehicles, road diversions; Min. Infrastructure
ANNEX 3 Page 7 of 7
REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT
MATRIX OF THE ENVIRONMENTAL AND SOCIAL SURVEILLANCE AND MONITORING PROGRAMME (PGES) (cont.) During works and worksite operation (cont.) Surveillance Programme Responsibilities Monitoring Programme Responsibilities Costs Site works (control of manufacture of surface Corporate environmentalists Compliance with labour legislation and Technical Directorates of Ministry of dressing and concrete; control of gas and dust recommendations of the environmental Infrastructure; Idem emissions, discharge of liquid, oily and solid assessment; Control Directorate of ANPE ; wastes) Conditions of scouring tyre treads; Contractors and their env. Compliance with recommendations of the Min. of Infrastructure; Min. of Included in the Excavations , bridge construction, experts. Environmental Assessment; Agriculture. ; Min. of Transport, cost of works waterproofing, stabilization of verges, CRDA Experts Road Traffic and Safety; ANPE ; drainage ;, Displacement of social infrastructure: water Regional Directorate for Compliance with health , housing and sanitation Min. of Health pipes, electricity poles, telephone lines, Water, Electricity and requirements, etc. Min. of Communications transformers Telecommunications Min. of Energy Storage conditions at fuel dumps. Contractors and their Compliance with the recommendations of the Min. of Transport; Min. Agric. ; Min. Idem Maintenance of vehicles and road building environmental experts; environmental assessment of Infrastructure machinery CRDA Acceptance of structures and related Contractors and Compliance with the builder’s recommendations Min. of Infrastructure-housing, Idem equipment; handling; concessionaries, CRDA and standards ANPE, experts Min. of Planning and Regional Development ; Min. of Tourism; Min. of Transport Min. Agric. and Min. Environ. Evacuation of bituminous waste; Contractors and their Compliance with the management of toxic waste Min. of Environment; Min. of Idem Restoration of work sites; Embellishment environmental experts; dumps; Conformity with the DD – conformity Infrastructure. measures, tree planting, etc. CRDA with the environmental assessment Min. of Health; Min. of Agriculture.
OPERATIONAL PHASE Maintenance of highway structures, bridges, Min. of Infrastructure,; Compliance with safety standards Ministry of Infrastructure Budget of hydraulic balancing, drainage, Regional Directorates Regional Planning; Administrations concerned Landscaping of trees planted on verges CRDA Regional Forestry Esthetic Impact Management-landscaping Ministry of Agriculture – CRDA Included in their Directorates budget Maintenance of verges: drainage; Road Squads Erosion control ; sanitation; landscape impact; Min. Environ. ; Min. Agriculture Included in their accumulation of rubble and different types of Min. Infrastructure budget waste Erosion Control, Soil and Water Conservation CRDA Rational elimination of oily waste and other Min. of Agriculture Included in their products off-site ; compliance with anti-pollution Mi. of Infrastructure operating budget standards
ANNEX 4 Page 1 o f 3
REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT RECOMMENDATIONS OF THE STUDY ON UNIT COSTS FOR ROAD CONSTRUCTION WORKS IN AFRICA OBJECTIVES /RECOMMENDATIONS ACTIONS
Objective1 : Accurately determine the estimated costs
• Ensure that project designs or design review are carried out by reputable consulting firms recruited The project designs retained under the investment programme of the 11th Plan are on the basis of an appropriate selection process, in accordance with the Bank’s guidelines and TOR specifically requiring an analysis of the supply chain for the firm’s contract as well as the prepared by reputable and competent national consulting firms following an appropriate availability of the main inputs and price forecasts made when the estimated costs are determined by selection procedure by the Government (cf. para 3.7.2). The estimated costs determined the engineer (countries and the Bank). reflect the current economic conditions and the anticipated rise in the costs of inputs (cf. para 4.8).
• Require an adequate geotechnical study at the design stage (the Bank and countries). This requirement is complied with by MEHAT. The geotechnical studies carried out by the consulting firms are submitted for verification by CETEC (National Central Geotechnical Laboratory) for opinion prior to validation of the DDs (cf. para 4.1.1).
• Systematically update the estimated costs when projects are behind schedule, by reviewing costs at This requirement is also complied with by MEHAT and always verified by the Bank appraisal and carrying out integral design reviews, over 2 years after the initial design (Bank and country). during its missions.
• Encourage, if justified, the standardization of project design requirements country-wide or at Road improvement standards in Tunisia correspond to internationally recognized regional level in the case of multinational corridors (Bank and donors) standards (para 4.1.1) and the roads have carriageway widths defined on the basis of their category (RN, RR, RVE and Expressway (cf. para 3.1.1).
Objective 2: Further Improving Bid Competitiveness
• Systematically review, by country, the rationale of promoting the participation of local contractors, The road construction industry in Tunisia is fairly efficient (cf. para 3.7.1). Bidding for and define the related measures in the project design by the appraisal team –for example preparation of bidding documents, national preference, pre-selection criteria, etc. (Bank and countries). projects financed by ADB and the other partners (EIB, IBRD, and AFESD) is open to international competition without national preference.
• Pursue the publication and execution of bids, as well as a comprehensive review of procurement MEHAT is familiar with the Bank’s procurement procedures and applies them procedures by the executing agencies and of their capacity (Bank). satisfactorily. These documents are also submitted to the Higher Commission fro Public Procurement (Procurement Board) for no-objection (cf. para 4.1.1).
ANNEX 4 Page 2 of 3 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT RECOMMENDATIONS OF THE STUDY ON UNIT COSTS FOR ROAD CONSTRUCTION WORKS IN AFRICA OBJECTIVES /RECOMMENDATIONS (cont.) ACTIONS
• Monitor procurements to ensure competitiveness, and intervene when bidding leans towards limited Bidding for projects financed by ADB and the other partners (EIB, IBRD, AFESD) is competition (Bank and countries). open to international competition without national preference (cf. para 5.4 and Annex 6)
Objective 3: Strengthening of Knowledge Management on Road Costs and the Road Construction Industry.
• Support the preparation of up-dated national data on active contractors in the roads and construction There is a very comprehensive road database in Tunisia including a catalogue of markets by utilizing information provided by the Project Implementation Reports and PCRs (countries, Bank and donors). carriageways by region for strengthening works.
• Support the preparation of updated databases on the unit costs of roads for the different types of To be monitored, even though this database exists for Tunisia. projects (reach, scale, location and context) – principally on the basis of the Africa Infrastructure Country Diagnostic on estimated unit costs of infrastructure (countries, REC, Bank and other donors). • Monitor fluctuations in the global and local prices of the principal inputs through an early warning Ongoing, faced with a surge in prices of inputs in September 2007, ADB participated in system for contract price increases (countries). a seminar organized by MEHAT, the Federation of BPW contractors and UTICA to • Organize internal and external workshops on the conclusions and recommendations of the study and on the proposed action plan. (Bank). discuss fluctuations in input prices and make recommendations to better adapt the adjustment formulae in the market context.
OBJECTIVES /RECOMMENDATIONS (cont.) ACTIONS
• Systematically apply FIDIC conditions for price adjustment formulae in contracts (countries and the Ongoing, faced with a surge in prices and problems encountered by contractors, ADB Bank). agreed, at MEHAT’s request to include the price adjustment clause for contracts with implementation periods of 12 instead of 18 months as previously stipulated in the ADB specifications. This brings it into line with the FIDIC bidding documents. (cf. para 4.1.1). Objective 4 : Minimize Project Implementation Delays
• Thoroughly assess the Executing Agencies’ capacity and include in the project components adequate The road projects Executing Agency in Tunisia is competent (cf. para 4.1.3 et 5.1) and capacity building if necessary (Bank and countries). there is an annual re-training programme for MEHAT staff. (cf. para 3.4.3)
ANNEX 4 Page 3 of 3 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT RECOMMANDATIONS OF THE STUDY ON UNIT COSTS FOR ROAD CONSTRUCTION WORKS IN AFRICA OBJECTIVES /RECOMMENDATIONS (cont.) ACTIONS
• Ensure effective supervision of projects and compliance with realistic procurement schedules Frequency of 2 supervision missions/year carried out for the projects and regular (Bank). discussions held with MEHAT in Tunis on the documents (cf. para 5.3)
• Continue, as far as possible, to minimize non-essential conditions precedent to loan effectiveness or The loan conditions are identical to those of the ongoing projects and do not place disbursement, for example by excluding conditions related to sector policy reform which should be formulated through the sector reform loans or development policy (the Bank). additional constraints on the Government. Faced with a surge in input prices, the condition relating to an increase in the road maintenance budget was considered appropriate by MEHAT and the Ministry of Finance.
• Systematically review and use Advanced Procurement Action (Bank). To be applied
• Ensure that the appropriate procedures are followed for the assessment of bidders’ qualifications Procurements financed by ADB are governed by its rules while taking into account the (Bank and countries). good procurement practices of the country.
• Ensure continuity with regard to staff in charge of project supervision and implementation (Bank There is continuity with regard to staff in charge of project supervision at MEHAT. and countries).
• Evaluate the possibility of using other procurement methods, such as the design/build/maintain BOT is not yet used for road works Tunisia. method, and the way forward for improvement/harmonization of the related procurement guidelines (Bank and Donors).
• Continue to support institutional reform of the road sector and build capacities (Bank and countries). To be followed up
Objective 5 : Be Well-prepared for Possible Price Increases
• Agree with the borrowers on a mitigation plan when price increases exceed the estimate made in To be followed up respect of the project including an increase in counterpart funds and other measures. (countries and the Bank). • Justify price and physical contingencies in the estimated project costs to properly reflect the Justified (cf. para 4.8). specificities of projects and countries, the perceived validity of the estimated design costs and future price variations for the main inputs. (Bank).
ANNEX 5 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT IMPLEMENTATION SCHEDULE
Activities 2008 20092010 2011 2012 2013 Appraisal, Negotiation and Approval of Loan Works Approval of standard BD Developmental Roadworks Launching of Bidding Award of Contracts Works Implementation Rehabilitation of Network Launching of Bidding Award of Contracts Works Implementation Strengthening of Network 1st Phase Launching of Bidding Award of Contracts Works Implementation
2nd Phase Launching of Bidding Award of Contracts Works Implementation Highway Structures 1st Phase Launching of Bidding Award of Contracts Works Implementation
2nd Phase Launching of Bidding Award of Contracts Works Implementation Proj. Mon. and ManagemeDGPC Monitoring Launching Mission ADB Supervision Missions Mid-term Review Mission Prep. Project Completion Rep.
ANNEX 6 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT
PROCUREMENT ARRANGEMENTS
The following methods will be used for procurements to be made under the project:
• International competitive bidding for the developmental road works (5 projects and the network rehabilitation works (374.1 km of roads).
• National competitive bidding for the strengthening and highway structure construction works. The strengthening works will be initiated following two separate bidding processes concerning the respective lengths of the 314 km and 326.4 km roads. The highway structure works will be initiated following 2 separate national competitive bidding processes each concerning the construction of 7 highway structures with cumulative lengths of 720 lm and 1010 lm. The same applies to works on the 3 remaining developmental road projects (Beja and Sidi Bouzid) as well as for supervisory services to be procured for DGPC and DREHAT. The use of national competitive bidding for these works is justified since the works all concern small sections of road scattered over 19 Governorates and requiring considerable material resources (surface dressing and concrete plants, trucks and other heavy public works equipment) to be deployed simultaneously at the different work sites, which, from experience is unlikely to interest the major international public works firms.
5.4.3 General Procurement Notice: the text of a General Procurement Notice (GPN) will be discussed and adopted during the loan negotiations and will be published in "Development Business" as soon as the loan is approved by the Board of Directors.
5.4.4 Review Procedures : the following documents will be submitted for the Bank’s review and approval prior to publication, namely: (i) the Specific Procurement Notice; (ii) bidding documents; (iii) bid evaluation reports with recommendations on contract awards; and (iv) draft contracts, if those contained in the bidding document have been changed.
Components In million UA ADB Financing Others NCB ICB Non-ADB Total Financing 1. Clearing of rights-of-way/Displacement of 13.13 13.13 13.13 concessionary networks. 0 2. Works 2.1 Developmental Road works (5 ICB and 2 NCB) 9.84 75.92 85.76 60.72 2.2 Network Rehabilitation (374.1 km – 20 bid 64.39 64.39 packages♣) 45.59 2.3 Network Strengthening 2.3.1 Phase 1 (314 km -13 bid packages♣ ) 20.34 20.34 14.40
3.2.2 Phase 2 (326.4 km – 13 bid packages♣) 33.18 33.18 23.49
2.4 Highway Structures 2.4.1 – Phase 1 (7 units) 10.76 10.76 7.62 2.4.2 - Phase 2 (7 units) 15.09 15.09 10.68
3. Works Supervision Services 3.49 3.49 3.49
Overall Total 16.63 89.83 140.31 16.63 246.15 162.50
♣ The number of bid packages is indicative
ANNEX 7 Page 1 of 9 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT - ECONOMIC EVALUATION PAST AND FORECAST TRAFFIC TRENDS Developmental Road works Component Past Traffic Trend Governorate Project Length. (in AADT) Traffic Forecast (in AADT) Annual Cumul. Annual (en km) Year Year (1997-2002) Year Year Cumulative 1997 2002 2009 2019 (2002-2019) Beja Dual Carriageway GP6D 4.0 4136 6224 8.5% 9672 15020 5.3% Beja Bypass (GP6-MC52-GP11) 4.5 11372 17660 5.1% Jendouba Jendouba Bypass (GP6-GP17) 6.0 7663 13090 5.5% Sousse GP1 East bypass at Msaken 10.0 5252 9767 6.4% Gabes GP 16 East bypass at El Hamma 10.0 2576 4697 6.2% Sousse/Kairouan Dual Carriageway GP2 Enfidha-Kairouan 60.0 5955 8486 7.3% 12929 22085 5.8% Zaghouan Dual Carriageway GP3 Jebel Oust-Fahs 29.0 6103 7247 3.5% 10197 15836 4.7% Sidi Bouzid 2x2 lane bypass MC125 North 6.0 8556 15037 5.8% Rehabilitation Component Governorate Roads Location Length Past Traffic Trend (AADT) Traffic Forecast (in AADT) Annual Annual Cumul. Cumul. Year (1997-2002) (2002- from PK to PK (in km) 1997 Year 2002 Year 2009 Year 2019 2019) Ben Arous MC35 0.0 10.2 10.2 7547 9538 4.8% 12980 19213 4.2% RVE565 11.8 22.9 11.1 3006 5284 11.9% 8484 15926 6.7% Nabeul MC45 0.0 21.0 21.0 1500 2398 9.8% 3726 6674 6.2% MC128 0.0 2.3 2.3 1349 3119 18.2% 5345 11017 7.7% RVE573 0.0 12.0 12.0 4218 6178 7.9% 9289 15868 5.7% RVE597 0.0 15.0 15.0 1427 3267 18.0% 5599 11540 7.7% MC28 92.9 110.0 17.1 3137 5154 10.4% 8276 15536 6.7% RVE573 12.0 19.0 7.0 1700 3246 13.8% 5563 11466 7.7% Zaghouan MC28 26.0 43.6 17.6 1251 1972 9.5% 3064 5488 6.2% RVE644 7.5 16.1 8.6 1288 1909 8.2% 2967 5313 6.2% MC28 89.5 92.9 3.4 1765 2329 5.7% 3277 5089 4.7% Bizerte MC66 0.0 12.3 12.3 1589 2748 11.6% 4413 8283 6.7% MC69E2 0.0 7.0 7.0 3326 5638 11.1% 9053 16994 6.7% MC70E 0.0 9.3 9.3 3089 4062 5.6% 5716 8876 4.7% RVE337 0.0 13.2 13.2 3676 4486 4.1% 5903 8327 3.7% MC69 30.3 43.2 12.9 2075 4186 15.1% 7174 14786 7.7% MC69E1 10.0 16.1 6.1 6511 7713 3.4% 10150 14317 3.7% RVE314 0.0 8.8 8.8 4651 5820 4.6% 7920 11724 4.2% Beja MC28 18.3 26.0 7.7 1138 3652 26.3% 6676 15094 8.7% MC62 0.0 10.9 10.9 1207 1845 8.9% 2867 5135 6.2% MC62 10.9 18.5 7.6 1207 1845 8.9% 2867 5135 6.2% Jendouba MC60 1.8 9.0 7.2 2301 3049 5.8% 4290 6663 4.7% MC62 18.5 29.7 11.2 1775 2080 3.2% 2737 3861 3.7% Sousse RVE644 0.0 7.5 7.5 1288 1909 8.2% 2967 5313 6.2% RVE819 7.0 11.8 4.8 4349 5483 4.7% 7462 11045 4.2% RVE822 0.0 8.1 8.1 4178 5499 5.6% 7738 12016 4.7% Monastir RVE854 0.0 16.0 16.0 1662 2100 4.8% 2858 4230 4.2% RVE822 8.1 15.0 6.9 4178 5499 5.6% 7738 12016 4.7% RVE857 0.0 4.0 4.0 3431 4282 4.5% 5827 8626 4.2% Sfax MC119 60.0 99.0 39.0 1650 2305 6.9% 3353 5462 5.2% MC119 30.7 60.0 29.3 1495 2234 8.4% 3472 6217 6.2% Gabes RVE938 0.0 19.0 19.0 1154 1571 6.4% 2285 3723 5.2%
ANNEX 7 Page 2 of 9 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT - ECONOMIC EVALUATION PAST AND FORECAST TRAFFIC TRENDS Strengthening Component Governorate Roads Location Length Past Traffic Trend (in AADT) Traffic Forecast (in AADT) Ann. Acc. ann. Cumul. (2002- from PK To PK (in km) Year 1997 Year 2002 (1997-2002) Year 2009 Year 2019 2019) Tunis MC135 0.0 7.0 7.0 51789 60193 3.1% 79210 111733 3.7% Ariana GP8 16.0 28.5 12.5 18558 24806 6.0% 34905 54206 4.7% X20 0.0 8.3 8.3 28895 38056 5.7% 53549 83159 4.7% Manouba RVE511 0.0 8.8 8.8 4149 5874 7.2% 8832 15087 5.7% Ben Arous GP1 4.0 10.5 6.5 21319 26768 4.7% 36428 53922 4.2% MC34 7.0 11.4 4.4 11084 15291 6.6% 22243 36232 5.2% Nabeul MC27 83.0 106.5 23.5 3774 6800 12.5% 11654 24019 7.7% MC28D 0.0 8.7 8.7 7927 10880 6.5% 15827 25780 5.2% Bizerte GP8 28.5 60.2 31.7 9400 13112 6.9% 19074 31069 5.2% Beja GP6 0.0 13.0 13.0 6496 8339 5.1% 11734 18222 4.7% MC75E1 0.0 19.0 19.0 1895 2706 7.4% 4069 6950 5.7% Jendouba GP7 155.0 169.4 14.4 3086 4411 7.4% 6633 11329 5.7% GP6 73.0 94.0 21.0 6980 9132 5.5% 12850 19955 4.7% Le Kef GP5 172.5 211.6 39.1 3445 4876 7.2% 7332 12524 5.7% GP17 78.0 98.0 20.0 3212 4293 6.0% 6041 9381 4.7% Siliana MC71 58.4 73.0 14.6 1454 2544 11.8% 4085 7668 6.7% GP4 28.3 47.5 19.2 1679 2686 9.9% 4174 7475 6.2%
Beja GP11 104.0 136.5 32.5 1314 1612 4.2% 2121 2992 3.7% Jendouba GP17 26.0 46.0 20.0 1665 2313 6.8% 3365 5481 5.2% GP17 10.9 18.5 7.6 1679 2402 7.4% 3612 6169 5.7% Sousse MC100 0.0 18.0 18.0 8131 10158 4.6% 13824 20462 4.2% MC133 48.7 66.0 17.3 2088 3051 7.9% 4588 7836 5.7% Monastir GP1 166.0 181.0 15.0 12851 16092 4.6% 21899 32416 4.2% MC100 18.0 28.1 10.1 6490 8742 6.1% 12717 20714 5.2% MC90 0.0 10.5 10.5 4393 6242 7.3% 9386 16032 5.7% Mahdia GP1 181.0 214.5 33.5 8852 11669 5.7% 16419 25499 4.7% MC87 30.5 46.2 15.7 2731 3681 6.2% 5355 8722 5.2% GP1 214.5 240.0 25.5 8852 11091 4.6% 15093 22342 4.2% Sfax GP1 240.0 259.0 19.0 11374 15131 5.9% 21291 33064 4.7% GP1 304.0 366.0 62.0 4644 6790 7.9% 10210 17440 5.7% GP1D 0.0 11.6 11.6 4031 5708 7.2% 8583 14661 5.7% Kairouan GP3 142.2 194.6 52.4 6307 9021 7.4% 13564 23170 5.7% Gabes GP1 366.0 400.0 34.0 8788 12036 6.5% 17509 28520 5.2% GP1 408.0 454.0 46.0 10039 14118 7.1% 21228 36261 5.7% Medenine GP1 454.0 480.0 26.0 10039 13667 6.4% 19881 32384 5.2% GP1 480.0 545.5 65.5 6166 8545 6.7% 12430 20248 5.2% Gafsa GP3 378.5 399.1 20.6 1863 2909 9.3% 4521 8096 6.2% GP15 114.7 131.5 16.8 2103 3568 11.2% 5729 10755 6.7% MC103 0.0 6.0 6.0 638 859 6.1% 1250 2035 5.2% Kebili MC103 6.0 60.4 54.4 638 859 6.1% 1250 2035 5.2%
ANNEX 7 Page 3 of 9 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT - ECONOMIC EVALUATION PAST AND FORECAST TRAFFIC TRENDS
Highway Structures Component
Governorate Roads Location Span Wadi Past Traffic Trend (in AADT) Traffic Forecast (in AADT) Acc. ann. Acc. ann. (1997-2002) (2002-2019) PK (in lm) 1997 2002 2009 2019 Ariana GP8 26.4 160 Meleh 18558 28401 8.9% 44135 79039 6.2% Manouba GP5 19.8 120 Chafrou 16463 27831 11.1% 44691 83890 6.7% Ben Arous GP3 18.8 80 Meliane 12688 16662 5.6% 23445 36410 4.7% GP3 18.9 80 Meliane 12688 16662 5.6% 23445 36410 4.7% Nabeul MC27 43.9 50 Boulidine 9025 11564 5.1% 16272 25269 4.7% RVE129 0.1 70 El Khandhar 8694 12257 7.1% 18430 31481 5.7% Jendouba GP17 65.5 160 Medjerda 3482 5412 9.2% 8410 15061 6.2%
Le Kef MC60 47.7 70 Serb El Hout 790 959 4.0% 1262 1780 3.7% Siliana RVE623 43.0 80 Siliana 1122 1464 5.5% 2060 3199 4.7% Sousse GP1 87.0 200 Kastlaya 10520 12895 4.2% 16969 23936 3.7% Monastir MC88 12.9 60 Maleh 5620 7543 6.1% 10973 17873 5.2% Sfax GP1 231.0 200 Bir Chaaba 8803 11091 4.7% 15093 22342 4.2% RVE924 3.7 80 Sakiet Ezzit 8267 10310 4.5% 14030 20769 4.2% Gabes GP16 32.7 320 El Hamma 2729 4243 9.2% 6594 11808 6.2%
ANNEX 7 Page 4 of 9 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT - ECONOMIC EVALUATION ECONOMIC ANALYSIS RESULTS
Development Road Works Component
Project Length Cost in TND Over the 2009-2019 Period +10% Inv Vehicle Operating Base -10% (in km) Costs Time Saving Total VOC Incl. Taxes Excl. VAT (VOC) Time=0 Dual Carriageway GP6D 4.0 7 000 000 5 932 203 21 074 618 2 784 239 23 858 858 16.10% 11.70% Beja Bypass (GP6-MC52-GP11) 4.5 9 500 000 8 050 847 23 708 946 3 132 269 26 841 215 15.70% 11.40% Jendouba Bypass (GP6-GP17) 6.0 18 000 000 15 254 237 52 275 217 7 766 366 60 041 583 14.20% 10.10% GP1 East Bypass at Msakan 10.0 25 000 000 21 186 441 16 248 802 3 342 711 19 591 514 32.10% 22.60% GP16 East Bypass at El Hamma 10.0 30 000 000 25 423 729 8 657 868 980 159 9 638 027 14.0% 10.2% GP2 Dual Carriageway-Kairouan 60.0 58 000 000 49 152 542 38 338 548 8 407 495 46 746 044 31.0% 21.4% GP3 Dual Carriageway Jebel Oust-Fahs 29.0 55 000 000 46 610 169 24 259 064 3 204 947 27 464 011 20.9% 15.5% MC125 North 2x2 lane bypass 6.0 9 000 000 7 627 119 13 576 260 3 303 183 16 879 443 14.0% 10.0%
ANNEX 7 Page 5 of 9 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT - ECONOMIC EVALUATION ECONOMIC ANALYSIS RESULTS Rehabilitation Component Benefits (in TND) IRR
Governorate Roads Location Length Cost in TND over the 2009-2029 period +10%Inv Base (in km) Vehicle Operating Costs Time Total -10%Benefits from PK to PK Incl. Taxes Excl. VAT Saving Time=0 Ben Arous MC35 0.0 10.2 10.2 4 100 000 3 474 576 30 412 301 3 676 800 34 089 101 33.8% 25.4% RVE565 11.8 22.9 11.1 4 470 000 3 788 136 21 632 069 2 615 283 24 247 352 23.0% 17.2% Nabeul MC45 0.0 21.0 21.0 8 390 000 7 110 169 25 620 955 3 024 185 28 645 140 14.9% 10.9% MC128 0.0 2.3 2.3 960 000 813 559 2 984 216 360 787 3 345 003 15.2% 11.1% RVE573 0.0 12.0 12.0 4 800 000 4 067 797 25 606 170 3 095 746 28 701 916 25.1% 18.8% RVE597 0.0 15.0 15.0 6 000 000 5 084 746 19 292 171 2 332 393 21 624 564 15.7% 11.5% MC28 92.9 110.0 17.1 3 400 000 2 881 356 10 074 003 1 330 911 11 404 913 14.5% 10.4% RVE573 12.0 19.0 7.0 4 800 000 4 067 797 25 606 170 3 095 746 28 701 916 25.1% 18.8% Zaghouan MC28 26.0 43.6 17.6 3 400 000 2 881 356 10 074 003 1 330 911 11 404 913 14.5% 10.4% RVE644 7.5 16.1 8.6 3 450 000 2 923 729 9 339 791 1 774 886 11 114 677 14.1% 9.5% MC28 89.5 92.9 3.4 1 390 000 1 177 966 3 871 367 735 695 4 607 061 14.5% 9.8% Bizerte MC66 0.0 12.3 12.3 4 920 000 4 169 492 14 893 273 2 583 965 17 477 238 15.5% 10.7% MC69E2 0.0 7.0 7.0 2 810 000 2 381 356 13 928 890 1 257 120 15 186 010 22.9% 17.6% MC70E 0.0 9.3 9.3 3 710 000 3 144 068 12 740 676 1 054 423 13 795 099 16.2% 12.3% RVE337 0.0 13.2 13.2 5 290 000 4 483 051 18 677 170 1 545 730 20 222 900 16.6% 12.6% MC69 30.3 43.2 12.9 5 170 000 4 381 356 23 099 778 2 570 102 25 669 880 21.2% 15.5% MC69E1 10.0 16.1 6.1 2 450 000 2 076 271 18 603 082 2 480 473 21 083 555 34.9% 26.0% RVE314 0.0 8.8 8.8 3 540 000 3 000 000 14 516 610 1 935 596 16 452 207 19.9% 14.6% Beja MC28 18.3 26.0 7.7 3 090 000 2 618 644 18 163 324 2 020 868 20 184 192 27.2% 20.6% MC62 0.0 10.9 10.9 4 370 000 3 703 390 12 229 249 1 932 575 14 161 824 14.2% 9.9% MC62 10.9 18.5 7.6 3 030 000 2 567 797 8 526 816 1 347 483 9 874 299 14.3% 9.9% Jendouba MC60 1.8 9.0 7.2 2 880 000 2 440 678 8 147 305 906 476 9 053 781 13.7% 10.0% MC62 18.5 29.7 11.2 4 370 000 3 703 390 12 229 249 1 932 575 14 161 824 14.2% 9.9%
ANNEX 7 Page 6 of 9 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT - ECONOMIC EVALUATION ECONOMIC ANALYSIS RESULTS
Rehabilitation Component (Cont.) Benefits (in TND) IRR
Governorate Roads Location Length Cost in TND over the 2009-2029 period +10%Inv Base (in km) Vehicle Operating Costs Time Savings Total -10%Avant from PK to PK Incl. Taxes Excl. Taxes Time=0 Sousse RVE644 0.0 7.5 7.5 3 000 000 2 542 373 8 263 221 1 305 828 9 569 049 13.9% 9.7% RVE819 7.0 11.8 4.8 1 940 000 1 644 068 8 939 765 994 646 9 934 411 21.8% 16.4% RVE822 0.0 8.1 8.1 3 240 000 2 745 763 15 643 950 1 740 560 17 384 510 22.8% 17.1% Monastir RVE854 0.0 16.0 16.0 6 400 000 5 423 729 17 892 992 2 827 610 20 720 602 14.2% 9.9% RVE822 8.1 15.0 6.9 3 240 000 2 745 763 15 643 950 1 740 560 17 384 510 22.8% 17.1% RVE857 0.0 4.0 4.0 1 600 000 1 355 932 5 817 994 647 315 6 465 309 17.5% 13.0% Sfax MC119 60.0 99.0 39.0 15 590 000 13 211 864 44 091 933 8 086 656 52 178 589 14.6% 10.0% MC119 30.7 60.0 29.3 11 720 000 9 932 203 34 296 865 6 290 197 40 587 063 15.1% 10.4% Gabes RVE938 0.0 19.0 19.0 7 590 000 6 432 203 19 927 940 5 034 595 24 962 534 14.4% 9.2%
ANNEX 7 Page 7 of 9 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT - ECONOMIC EVALUATION ECONOMIC ANALYSIS RESULTS
Reinforcement Component Benefits (in TND) IRR Governorate Roads Location Length Cost in TND over the 2009-2029 period +10%Inv (in km) Vehicle Operating Costs Time Saving Total Base -10%Benefits from PK to PK Incl. Taxes Excl.VAT Time=0 Tunis MC135 0.0 7.0 7.0 2 820 000 2 389 831 25 507 158 2 934 764 28 441 922 46.2% 34.3% Ariana GP8 16.0 28.5 12.5 2 500 000 2 118 644 22 663 194 2 281 922 24 945 116 42.5% 32.2% X20 0.0 8.3 8.3 3 330 000 2 822 034 29 095 111 3 843 854 32 938 965 43.4% 31.9% Manouba RVE511 0.0 8.8 8.8 1 500 000 1 271 186 4 308 385 1 410 071 5 718 456 16.3% 10.1% Ben Arous GP1 4.0 10.5 6.5 2 600 000 2 203 390 25 134 989 2 688 420 27 823 409 41.4% 31.6% MC34 7.0 11.4 4.4 1 760 000 1 491 525 11 036 466 1 111 244 12 147 711 28.0% 21.4% Nabeul MC27 83.0 106.5 23.5 4 720 000 4 000 000 20 513 423 2 710 098 23 223 521 20.6% 15.3% MC28D 0.0 8.7 8.7 3 510 000 2 974 576 20 627 208 2 725 130 23 352 338 27.1% 20.2% Bizerte GP8 28.5 60.2 31.7 7 550 000 6 398 305 49 870 132 7 793 418 57 663 550 30.6% 22.5% Beja GP6 0.0 13.0 13.0 3 000 000 2 542 373 8 595 779 646 943 9 242 723 13.5% 10.1% MC75E1 0.0 19.0 19.0 3 250 000 2 754 237 16 698 896 2 206 148 18 905 043 24.0% 17.9% Jendouba GP7 155.0 169.4 14.4 2 460 000 2 084 746 7 153 782 945 110 8 098 892 14.2% 10.2% GP6 73.0 94.0 21.0 4 210 000 3 567 797 20 211 818 2 670 252 22 882 069 22.6% 16.8% Le Kef GP5 172.5 211.6 39.1 6 450 000 5 466 102 21 991 712 2 905 400 24 897 111 16.5% 12.0% GP17 78.0 98.0 20.0 3 400 000 2 881 356 10 074 003 1 330 911 11 404 913 14.5% 10.4% Siliana MC71 58.4 73.0 14.6 2 490 000 2 110 169 7 575 423 590 199 8 165 622 14.1% 10.7% GP4 28.3 47.5 19.2 3 260 000 2 762 712 10 178 997 793 042 10 972 040 14.5% 11.0%
ANNEX 7 Page 8 of 9 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT - ECONOMIC EVALUATION ECONOMIC ANALYSIS RESULTS
Reinforcement Component (Cont.) Benefits (in TND) IRR Governorate Roads Location Length Cost in TND over the 2009-2029 period +10%Inv (in km) Vehicle Operating Costs Time Savings Total Base -10%Benefits from PK to PK Incl. Taxes Excl. VAT Time=0 Beja GP11 104.0 136.5 32.5 5 530 000 4 686 441 14 765 420 2 561 783 17 327 203 13.5% 9.3% Jendouba GP17 26.0 46.0 20.0 3 410 000 2 889 831 10 032 758 1 504 953 11 537 711 14.6% 10.3% GP17 10.9 18.5 7.6 3 500 000 2 966 102 9 871 470 1 480 759 11 352 229 14.0% 9.9% Sousse MC100 0.0 18.0 18.0 3 610 000 3 059 322 22 142 667 5 266 534 27 409 201 30.4% 21.0% MC133 48.7 66.0 17.3 2 940 000 2 491 525 7 862 407 1 870 038 9 732 446 14.3% 9.3% Monastir GP1 166.0 181.0 15.0 3 010 000 2 550 847 18 457 837 3 560 129 22 017 966 29.4% 21.0% MC100 18.0 28.1 10.1 2 820 000 2 389 831 15 956 304 3 795 135 19 751 440 28.3% 19.5% MC90 0.0 10.5 10.5 1 790 000 1 516 949 8 769 792 2 085 856 10 855 648 24.9% 17.1% Mahdia GP1 181.0 214.5 33.5 6 750 000 5 720 339 34 561 534 5 961 479 40 523 013 24.7% 17.8% MC87 30.5 46.2 15.7 2 670 000 2 262 712 7 481 141 1 779 356 9 260 497 14.9% 9.8% GP1 214.5 240.0 25.5 5 100 000 4 322 034 24 506 305 4 227 064 28 733 369 23.3% 16.8% Sfax GP1 240.0 259.0 19.0 3 820 000 3 237 288 23 034 312 4 442 835 27 477 148 28.9% 20.6% GP1 304.0 366.0 62.0 12 430 000 10 533 898 52 622 272 6 952 107 59 574 378 20.1% 14.9% GP1D 0.0 11.6 11.6 3 840 000 3 254 237 16 125 030 2 130 332 18 255 362 20.0% 14.8%
Kairouan GP3 142.2 194.6 52.4 10 520 000 8 915 254 64 095 221 15 244 761 79 339 982 30.1% 20.8% Gabes GP1 366.0 400.0 34.0 6 830 000 5 788 136 37 903 667 6 537 959 44 441 627 26.4% 19.1% GP1 408.0 454.0 46.0 9 230 000 7 822 034 62 176 315 10 724 720 72 901 036 31.4% 22.8% Medenine GP1 454.0 480.0 26.0 5 240 000 4 440 678 32 912 940 5 677 115 38 590 054 29.5% 21.4% GP1 480.0 545.5 65.5 13 110 000 11 110 169 91 518 348 14 301 962 105 820 310 32.0% 23.5% Gafsa GP3 378.5 399.1 20.6 3 510 000 2 974 576 9 828 572 1 089 458 10 918 029 13.4% 9.8% GP15 114.7 131.5 16.8 2 870 000 2 432 203 9 126 414 1 126 089 10 252 503 15.3% 11.2% MC103 0.0 6.0 6.0 1 020 000 864 407 2 673 864 410 352 3 084 216 13.1% 9.1% Kebili MC103 6.0 60.4 54.4 9 260 000 7 847 458 24 450 241 3 752 321 28 202 562 13.1% 9.1%
ANNEX 7 Page 9 of 9 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT - ECONOMIC EVALUATION ECONOMIC ANALYSIS RESULTS
Highway Structures Component Benefits (in TND) IRR Governorate Roads Location Span Wadi Cost in TND over the 2009-2029 period +10%Inv PK (in lm) Vehicle Operating Costs Time Savings Total Base -10%Benefits Incl. Taxes Excl.VAT Time=0 Ariana RN8 26.4 160 Meleh 5 700 000 4 830 508 14 711 413 4 128 481 18 839 894 17.9% 12.8% Manouba RN5 19.8 120 Chafrou 4 280 000 3 627 119 14 012 549 3 672 423 17 684 972 22.3% 16.3% Ben Arous RN3 18.8 80 Meliane 2 960 000 2 508 475 7 351 130 1 926 592 9 277 722 17.6% 12.7% RN3 18.9 80 Meliane 2 960 000 2 508 475 7 351 130 1 926 592 9 277 722 17.6% 12.7% Nabeul RR27 43.9 50 Boulidine 1 820 000 1 542 373 5 619 996 1 470 290 7 090 285 21.2% 15.5% RR129 0.1 70 El Khandhar 2 520 000 2 135 593 5 778 660 1 514 477 7 293 137 16.4% 11.8% Jendouba RN17 65.5 160 Medjerda 5 830 000 4 940 678 14 655 925 5 762 747 20 418 672 14.7% 9.6%
Le Kef RR60 47.7 70 Serb El Hout 2 570 000 2 177 966 6 400 987 2 628 601 9 029 588 13.2% 9.0% Siliana RL623 43.0 80 Siliana 2 920 000 2 474 576 7 634 655 3 123 124 10 757 778 14.1% 9.5% Sousse RN1 87.0 200 Kastlaya 7 170 000 6 076 271 15 731 981 5 914 135 21 646 116 13.3% 9.0% Monastir RR88 12.9 60 Maleh 2 220 000 1 881 356 7 073 725 2 459 019 9 532 743 20.3% 13.7% Sfax RN1 231.0 200 Bir Chaaba 7 150 000 6 059 322 16 343 892 6 123 640 22 467 532 13.8% 9.3% RL924 3.7 80 Sakiet Ezzit 2 920 000 2 474 576 7 554 225 2 202 377 9 756 602 17.0% 12.5% Gabes RN16 32.7 320 El Hamma 11 390 000 9 652 542 21 756 469 6 583 257 28 339 726 13.2% 9.0%
ANNEX 8 REPUBLIC OF TUNISIA ROAD PROJECT V APPRAISAL REPORT
LIST OF ONGOING BANK GROUP OPERATIONS AS AT 23APRIL 2008
GROSS CANCELLATIONS NET LOANS DISBURSEMENT DISB. as %. LOANS PROJECTS APPROV SIGNAT EFFECT. CLOSURE OBS I - AGRICULTURE Kairouan Integrated Development Programme 15.27 0,00 15.27 3.78 24.74% 29/03/06 13/09/06 09/03/07 31/12/13 Ongoing Kasserine Integrated Development Programme 11.02 0,00 11.02 11.02 100.00% 08/11/2000 28/02/01 06/06/01 31/12/07 Ongoing Gabes Integrated Development Programme 11.53 0.00 11.53 9.68 83.99% 08/11/2000 28/02/01 13/06/01 31/12/07 Ongoing Gafsa Integrated Development Programme 11.95 0.00 11.95 10.02 83.85% 08/11/2000 28/02/01 06/06/01 31/12/07 Ongoing BNA Line of Credit IV 113.40 0.00 113.40 104.83 92.44% 28/06/01 15/01/02 06/05/02 31/12/07 Ongoing Sub-Total I (5 projects) 163.17 0,00 163.17 139.33 83.39% II - INDUSTRY Environmental Capacity Building * 34.59 0,48 34.11 23.85 69.93% 29/06/05 27/09/05 24/03/06 31/12/09 Ongoing Sub-Total II (1 project) 34.59 0,00 34.11 23.85 69.93% III - TRANSPORT Classified Road Network Rehabilitation III 103.41 28.84 74.57 74.57 100.00% 28/11/01 28/05/02 12/09/02 09/07/07 Classified Road Network Rehabilitation IV 138.09 0,00 138.09 48.12 34.85% 24/11/04 22/03/06 20/09/06 31/12/09 Ongoing Railway Modernization II 61.61 0,00 61.61 24.95 40.49% 03/12/03 04/05/04 13/10/04 31/12/08 Ongoing Sub-total III (3 projects) 303.11 28.84 274.27 143.73 52.40% IV - PUBLIC UTILITIES Electricity Distribution Networks Rehabilitation 64.09 0,00 64.09 37.40 58.36% 10/12/03 20/09/04 21/02/05 31/12/08 Ongoing Project (VII) Sub-Total IV (1 project) 64.09 0,00 64.09 37.40 58.36% V - SOCIAL Secondary Education Support Project PAESII 49.43 0,00 49.43 9.84 19.91% 28/09/05 23/11/05 16/05/06 31/01/12 Ongoing Sub-total V (1 project) 49.43 0,00 49.43 9.84 19.91% OVERALL TOTAL (11 projects) 614.39 29.32 585.07 354.15 60.53%
ANNEX 9 REPUBLIC OF TUNISIA ROAD PROJECT V
APPRAISAL REPORT
SOURCES OF INFORMATION
1. Tunisia: Classified Road Network Rehabilitation Project Phase IV. Appraisal and Supervision Reports, African Development Bank, 2004-2007
2. Tunisia: Country Strategy Paper for the 2007-2011 period, African Development Bank, June 2006
3. Tunisia: Road Investments of the 11th Plan (2007-2011) , DGPC, MEHAT, Sept. 2007
4. Tunisia : ADB Project 5- 11th Plan Programme (2007-2011) -ADB Mission, Sept. 2007
5. Tunisia : ADB Project 5- 11th Plan Programme (2007-2011) -ADB Mission, Feb. 2008 Version
6. Tunisia: Road Maintenance Programme–Roads and Bridges –Management 2007, DEER, MEHAT, Dec. 2006
7. Tunisia: Road Maintenance-Review of Results of 10th Plan 2002-2006, DEER, MEH, Dec. 2007.
8. Tunisia: Road Investments of the 9th Plan (1997-2001), Outputs and Update, MEH, Dec. 2002.
9. Tunisia: Road Infrastructure in Tunisia, DGPC/MEHAT, December 2005
10. Tunisia : Study on the National Transport Master Plan – MTCT (2001-2003)
11. Tunisia : Study on Goods Transportation in Tunisia – MTCT (2001-2003)
12. Tunisia: Diagnostic and Evaluation Studies on the BPW Sector, MEH, February 2000
13. Tunisia : Feasibility documents and DDs, 2008-2009 programming, DGPC/MEHAT, February 2008