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Multinational AFRICA DEVELOPMENT BANK GROUP NDENDE-DOLISIE ROAD AND LIBREVILLE-BRAZZAVILLE CORRIDOR TRANSPORT FACILITATION PROJECT - PHASE I COUNTRY: GABONESE REPUBLIC/REPUBLIC OF CONGO PROJECT APPRAISAL REPORT OITC DEPARTMENT December 2013 Translated Document TABLE OF CONTENTS PROJECT INFORMATION SHEET, CURRENCY EQUIVALENTS, ACRONYMS AND ABBREVIATIONS, LIST OF ANNEXES AND TABLES, BASIC DATA, PROGRAMME LOGICAL FRAMEWORK, IMPLEMENTATION SCHEDULE, EXECUTIVE SUMMARY………………………………………………………………………………………..……………..………………………..I - IX 1 PROJECT STRATEGIC THRUST AND RATIONALE .............................................. 1 1.1 Key Development Constraints ................................................................................... 1 1.2 Project Linkages with Regional and National Strategies and Objectives .................. 1 1.3 Rationale for Bank Involvement ................................................................................ 2 1.4 Aid Coordination ....................................................................................................... 2 2 PROJECT DESCRIPTION ............................................................................................ 3 2.1 Project Objectives and Components .......................................................................... 3 2.2 Technical Solutions Retained and Other Alternatives Explored ............................... 4 2.3 Project Type ............................................................................................................... 5 2.4 Project Cost Estimates and Financing Arrangements ................................................ 5 2.5 Project Areas and Beneficiaries ................................................................................. 6 2.6 Participatory Process for Project Identification, Design and Implementation .......... 8 2.7 Bank Group Experience and Lessons Reflected in Project Design ........................... 8 2.8 Key Performance Indicators ...................................................................................... 9 3 PROJECT FEASIBILITY .............................................................................................. 9 3.1 Economic and Financial Performance ....................................................................... 9 3.2 Environmental and Social Impacts ............................................................................ 9 4 IMPLEMENTATION .................................................................................................. 13 4.1 Implementation Arrangements ................................................................................ 13 4.2 Monitoring and Evaluation ...................................................................................... 15 4.3 Governance .............................................................................................................. 16 4.4 Sustainability ........................................................................................................... 17 4.5 Risk Management .................................................................................................... 18 4.6 Knowledge Building ................................................................................................ 18 5 LEGAL FRAMEWORK .............................................................................................. 18 5.1 Legal Instrument ...................................................................................................... 18 5.2 Conditions Associated with Bank Intervention ....................................................... 18 5.3 Compliance with Bank Policies ............................................................................... 19 6 RECOMMENDATION ................................................................................................ 19 APPENDIX I: COMPARATIVE SOCIO-ECONOMIC INDICATORS APPENDIX II: TABLES OF BANK PORTFOLIOS IN GABON AND CONGO APPENDIX III: MAJOR RELATED PROJECTS FINANCED BY THE BANK AND OTHER DEVELOPMENT PARTNERS IN GABON AND CONGO APPENDIX IV: MAP OF PROJECT AREA LIST OF TABLES Page Table 2.1 - Project Components ................................................................................................. 4 Table 2.2 - Alternative Solutions Explored and Reasons for their Rejection ............................ 5 Table 2.3 - Summary of Cost Estimates by Project Component ................................................ 5 Table 2.4 - Summary of Cost Estimates by Expenditure Category ........................................... 6 Table 2.5 - Financing Plan by Project Component .................................................................... 6 Table 2.6 - Project Sources of Financing ................................................................................... 6 Table 2.7 - Project Expenditure Schedule by Component ......................................................... 6 Table 3.1 - Summary of Economic Analysis ............................................................................. 9 LIST OF ANNEXES A.1. Detailed Project Costs A.2. Rationale for Amount of Gabonese Counterpart Contribution to the Project’s Financing A.3. Procurement of Goods, Works and Services A.4. Economic and Financial Analysis Currency Equivalents September 2013 UA 1 = CFAF 751.005 UA 1 = EUR 1.14490 Fiscal Year 1 January - 31 December Weights and Measures 1 metric tonne = 2 204 pounds (lbs) 1 kilogramme (kg) = 2.200 lbs 1 metre (m) = 3.281 feet (ft) 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.621 mile 1 hectare (ha) = 2.471 acres Acronyms and Abbreviations AFD : French Development Agency AADT : Annual Average Daily Traffic ABEDA : Arab Bank for Economic Development in Africa AC : Asphalt Concrete ADB : African Development Bank ADF : African Development Fund BD : Bidding Documents BPW : Building and Public Works CEMAC : Central African Economic and Monetary Community CFAF : African Financial Community Franc CSP : Country Strategy Paper DGEC : General Directorate of Equipment and Construction DGGT : General Delegation for Major Works DGR : General Directorate of Roads EA : Executing Agency ECCAS : Economic Community of Central African States ERR : Economic Rate of Return EU : European Union GBV : Gender based violence ICB : International Competitive Bidding ICT : Information and Communication Technologies INSEED : National Institute of Statistics, Economic Surveys and Development JMC : Joint Monitoring Committee LTS : Long-Term Strategy (African Development Bank) MPITPTHTAT : Ministry of Investment Promotion, Public Works, Transport, Housing and Tourism in charge of Regional Development MTP : Ministry of Public Works NCB : National Competitive Bidding NEPAD : New Partnership for Africa’s Development NPV : Net Present Value NTDP : National Transport Development Plan OSBP : One-Stop Border Post PA : Project Area PIDA : Programme for Infrastructure Development in Africa RF : Road Fund RISP : Regional Integration Strategy Paper RMF : Road Maintenance Fund i STD : Sexually Transmitted Diseases STI : Sexually Transmitted Infections UA : Unit of Account USD : United States Dollar Veh/d : Vehicles per day VOC : Vehicle Operating Costs WB : World Bank ii Project Information Sheet Client Information BORROWERS: Gabonese Republic & Republic of Congo PROJECT NAME: Ndendé-Dolisie Road and Libreville-Brazzaville Corridor Transport Facilitation Project – Phase 1 LOCATION: Ngounié Province in Gabon and Niari Department in Congo EXECUTING AGENCIES: (i) Ministry of Investment Promotion, Public Works, Transport, Housing and Tourism in charge of Regional Development (MPITPTHTAT) in Gabon; (ii) General Delegation for Major Works (DGGT) in Congo; (iii) Economic Community of West African States (ECCAS), for the project’s overall coordination. Financing Plan Amounts in Million UA Sources of Financing Instrument Gabon Congo Total ADF-12 Loan (country allocation) 12.34 12.34 Project Loan ADF-12 Loan (regional operations envelope) 18.15 18.15 Project Loan ADB Loan (regional operations envelope) 70.00 70.00 Project Loan EU-Africa Infrastructure Trust Fund Grant 2.97 2.97 Grant Government of Gabon 18.94 18.94 Investment Budget Government of Congo 95.41 95.41 Investment Budget TOTAL 88.94 128.87 217.81 Key Financing Information on ADB Loan Loan Currency: Euros (EUR) Loan Interest Type: Floating Interest Rate: Base Rate (6-month EURIBOR) + Bank Funding Margin + Contractual Lending Spread (60 bp) Commitment Fee: N/A Other Charges: N/A Maturities: Six months Tenor: 20 years Grace Period: 60 months NPV (baseline scenario) : CFAF107.31 billion ERR (baseline scenario) : 20.08% Key Financing Information on the ADF Loan Loan Currency: Unit of Account (UA) Loan Interest Type: 1% (fixed) Interest Rate Spread: Not Applicable Service Charge: 0.75% per annum on the amount disbursed and outstanding Commitment Fee: 0.5% on the undisbursed loan amount 120 days from the signing of the Loan Agreement Other Charges: Not Applicable Tenor : 30 years Grace Period: 8 years from the date of signature of the Loan Agreement iii FRR, NPV (baseline scenario) : Not Applicable ERR, NPV (baseline scenario) : 20.08% and CFAF 107.31billion Timeframe – Main Milestones (expected) Concept Note Approval: August 2013 Project Approval: December 2013 Effectiveness : June 2014 Completion : December 2018 Deadline for Last Disbursement: June 2019 Last Repayment: June 2044 iv EXECUTIVE SUMMARY Project Overview 1. This project concerns the Libreville-Pointe Noire-Brazzaville Corridor, which is a focus of policy, social, economic and integration
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