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Project Information Document (Pid) PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB6478 Liberia Road Asset Management Project - LIBRAMP Project Name Public Disclosure Authorized Region AFRICA Sector Roads and highways (100%) Project ID P125574 Borrower(s) REPUBLIC OF LIBERIA Implementing Agency Infrastructure Implementation Unit of the Ministry of Public Works Liberia Tel: +231-6-579-053/+231-6-516-732 [email protected] Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared March 17, 2011 Public Disclosure Authorized Date of Appraisal December 15, 2010 Authorization Date of Board Approval May 17, 2011 I. Country and Sector Background 1. Since the Comprehensive Peace Agreement (CPA) in 2003 that ended the country’s 14- year civil war, Liberia has made important progress despite the considerable challenges and risks it faces. Liberia has maintained political stability since the democratic election in 2005, which enabled rebuilding of public sector institutions, delivery of essential public services, and foundation of a local government system. The country also has sustained strong growth since the end of its civil war, albeit it has slowed down Public Disclosure Authorized marginally in 2009 due to the global economic downturn that lowered primary commodity prices.1 2. However, Liberia remains one of Africa’s poorest nations, with its gross domestic product (GDP) per capita of US$2102 in 2009. The new government established in 2006 inherited severely damaged infrastructure and serious challenges in governance and institutional capacity, which has incessantly posed impediments to the country’s development. With that understanding, its first Poverty Reduction Strategy (PRS) published in March 2008 articulates the Government of Liberia’s (GOL’s) priorities for re-establishing of basic infrastructure and institutional strengthening. In particular, through highly participatory processes, where hundreds of people across the nation were invited for consultation, the PRS identified rebuilding of the road network as one of its top priorities.3 Public Disclosure Authorized 1 The real GDP has grown at 9.5 percent in 2007, 7.1 percent in 2008, and 4.9 percent (estimated) in 2009. 2 Market exchange rate basis; $379 on the basis of purchasing-power-parity (PPP) 3 The Strategy reads: “Rebuilding roads … is central to achieving all of the Government’s other major objectives, … consolidating peace and security, facilitating inclusion, revitalizing growth throughout the country, building 3. The World Bank has actively supported the GOL’s effort for recovery since the war ended, particularly in the areas of the PRS priorities through its International Development Association (IDA) resources. The Bank also has led donor coordination, fostering collaboration across sectors and administering a multi-donor trust fund, Liberia Reconstruction Trust Fund (LRTF). Combining funds from IDA and LRTF, more than US$200 million has been invested in or committed for rebuilding of transport infrastructure. The proposed Liberia Road Asset Management Project (LIBRAMP), which will be co-funded by the LRTF, the GOL and IDA, will address the PRS key priorities and synergize the collective impacts of previous investments, by repairing and securing maintenance of an important link of the country’s road network. 4. At the recent Country Portfolio Performance Review (CPPR) (February 2010), both the GOL and the Bank shared a common assessment that the country is gradually but surely moving out of emergency recovery situation to a normal development path, albeit with various challenges. It is also noted that, once out of emergency status, higher standards will be required for implementation of development policy and projects. The GOL needs to have greater country ownership in planning, managing and supervising its investment, and to develop and sustain its institutional capacity, building upon the experience and lessons learned during this transition period. Sectoral and Institutional Context 5. The country’s transport policy is guided by the National Transport Policy and Strategy (NTPS) prepared by the government in 2008 with support of the Bank. Adapting international good practices to the particulars of Liberia4, the NTPS set out the medium and long term goals for the road sector. They include (i) institutional formulation pursuing creation of an autonomous road authority with adequate staffing and financial capacities; (ii) innovative use of contracting techniques and partnerships with the private sector to facilitate long-term preservation of road assets; and (iii) establishment of effective maintenance strategy through participation by local enterprises and communities, as well as innovative contracting methods. The recommended investment framework implies a cost of about US$1 billion to reestablish the country’s basic roads and bridges network. 6. In order to improve capacity in the road sector, the government has put forward a comprehensive framework for implementation of donor funded projects. In October 2009, the Special Implementation Unit (SIU) was transformed into a self-standing Infrastructure Implementation Unit (IIU), with greater decision-making authority under the new leadership of an internationally recruited Program Director. Despite some recent progress towards enhanced management capacity, the IIU still needs to substantially improve its technical capacity in engineering, contract and financial management, and performance monitoring. With the on-going and envisioned progress within the IIU, an strong systems for local governance, promoting physical access to security and legal institutions, and making public and other services accessible to all Liberians.” 4 The key particulars of Liberia include (i) severely deteriorated and long unattended infrastructure, (ii) fewer workable construction days limited by long and intense rainy season, and (iii) difficulty in attracting reputable engineering companies and contractors due to the recent history of conflict and inadequate business infrastructure. eventual autonomous road authority will be created to professionalize management of the road network and create clear delineation with political decision-making. 7. The proposed LIBRAMP will strongly support the road sector’s plans to achieve the NTPS objectives. The Project will not only rehabilitate a strategically important road corridor that is severely destroyed, but also maintain it at desirable service levels for a 10- year period. The road corridor connects the capital city to areas with significant agricultural and natural resource potentials, provides direct linkage to neighboring Guinea, and improves linkage to Cote d’Ivoire. In addition, the Project will also finance needed institutional capacity building in areas of planning, monitoring and project management in the road sector. LIBRAMP’s large scale and long-term perspective will be both an opportunity and a test for the IIU to capitalize on its recent experience and current resources and to step up to the next level in managing on-going projects, and ultimately, the country’s road network. II. Objectives Proposed Development Objectives (PDO) 8. The Project will aim to reduce transport costs along the road corridor from Monrovia to the Guinea border and to maintain the road in good condition over a 10-year period through output and performance-based road management. Key Results 9. Achievement of the above development objectives will be measured in terms of the following results indicators: a) Transport costs borne by road users, including vehicle operating costs and monetary value of travel time (cents/vehicle-km); b) Roads in good and fair condition (km); c) Share of rural population with access to an all-season road (percentage); d) The number of direct beneficiaries including the percentage of female; and e) The number of indirect beneficiaries. III. Rationale for Bank Involvement Relationship to CAS 10. In 2009, the IDA, IFC and AfDB jointly prepared the Country Assistance Strategy (CAS). The CAS recognized and responded to government’s core strategic areas of intervention as identified in the PRS, which include peace and security, economic revitalization, strengthening governance and rule of law, and infrastructure and basic services. Fully aligned with these core areas, the CAS set out its three strategic themes: (i) rebuilding core state functions and institutions; (ii) rehabilitating infrastructure to jump-start economic growth; and (iii) facilitating pro-poor growth. 11. Funded by LRTF, IDA and by government’s own resources, the proposed LIBRAMP will address the principle and focus of the CAS. In light of the above three strategic themes of the CAS, rehabilitation of infrastructure and long-term management and preservation of the asset—the core of the LIBRAMP project—is viewed as the necessary precursor for reviving and sustaining economic development, delivering basic services, and hence, improving social conditions. IV. Description Preliminary Description 12. The proposed Project will finance a 10-year management contract for a critical primary road corridor, connecting Monrovia, Gbarnga, and Ganta to the Guinea border. The Project will also finance independent monitoring supervision of output and performance of the contract, and institutional capacity building in areas of planning, monitoring and project management in the road sector. The project consists of the following components. Component 1 – OPRC of Monrovia – Ganta Road Corridor 13. This component
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