Document of The World Bank
FOR OFFICIAL USE ONLY Public Disclosure Authorized
Report No: 34214-SL
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED GRANT
Public Disclosure Authorized IN THE AMOUNT OF SDR 30.4 MILLION (US$44.0 MILLION EQUIVALENT)
TO THE
REPUBLIC OF SIERRA LEONE
FOR AN
INFRASTRUCTURE DEVELOPMENT PROJECT
Public Disclosure Authorized November 9,2005
Transport Sector Country Department 10 Africa Regional Office Public Disclosure Authorized
This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective September 30,2005 Currency Unit = Sierra Leone Leones 1 SLL = US$0.00034660 1 US$ = SDR 1.44891
FISCAL YEAR January 1 - December 31
ABBREVIATIONS AND ACRONYMS AC Asphalt Concrete AfDB African Development Bank CAS Country Assistance Strategy CMU Coordination and Monitoring Unit DFID Department for International Development (UK) EA Environmental Assessment ECOWAS Economic Community of West African States EIA Environmental Impact Assessment EMP Environmental Management Plan ESMP Environment and Social Management Plan EU European Union FMR Financial Management Report FOD Flying Object Debris GOSL Government of Sierra Leone GPHA Ghana Ports and Harbors Authority HDM Highway Design Module HIPC Heavily Indebted Poor Countries ICR Implementation Completion Report IDP Infrastructure Development Project IDA International Development Association IERR Internal Economic Rate of Return I-PRSP Interim Poverty Reduction Strategy Paper IRCBP Institutional Reform and Capacity Building Project ISA International Standards of Auditing ISPS International Ship and Port Facility Security Code MARPOL 73/78 International Convention for the Prevention ofMarine Pollution from Ships, 1973 as modified by the Protocol of 1978 relating thereto MIS Management Information System MOTC Ministry of Transport and Communications MOW Ministry of Works MSU Mechanical Services Unit M&E Monitoring and Evaluation NaCSA National Commission for Social Action NCDDR National Commission for Disarmament, Demobilization and Reintegration NCP National Commission for Privatization NRS National Recovery Strategy NSAP National Social Action Project NGO Non Governmental Organization PHRD Japanese Grant Fund PMC Project Management Committee PPF Project Preparation Facility PPM Procurement Procedure Manuel PRSP Poverty Reduction Strategy Paper RAP Resettlement Action Plan WF Resettlement Policy Framework SHE Safety, Health and Environment SLAA Sierra Leone Airports Authority SLNTP Sierra Leone National Transport Strategy and Investment Plan (2003-2008) SLPA Sierra Leone Ports Authority SLRA Sierra Leone Roads Authority SLRTA Sierra Leone Road Transport Authority SOE Statement ofExpenditure S SATP Sub-Saharan Africa Transport Policy Program TSP Transport Sector Project (IDA) TSS Transitional Support Strategy UNAMSIL United Nations Mission in Sierra Leone UNDP United Nations Development Program UNHCR United Nations High Commission for Refugees WFP World Food Program
Vice President: Gobind Nankani Country Manager/Director : Mats Karlsson Sector Manager: C. Sanjivi Rajasingham Task Team Leader: David SteDhen Rudsze
REPUBLIC OF SIERRA LEONE INFRASTRUCTURE DEVELOPMENT PROJECT CONTENTS
Page
A . STRATEGIC CONTEXT AND RATIONALE ...... 6 1. Country and sector issues ...... 6 2 . Rationale for Bank involvement.,...... 9 3 . Higher level objectives to which the project contributes ...... 10 B. PROJECT DESCRIPTION...... 10 1. Lending instrument ...... 10 2 . Project development objective and key indicators ...... 10 3 . Project components ...... 12 4 . Lessons learned and reflected in the project design ...... -13 5 . Alternatives considered and reasons for rejection...... 14 C. IMPLEMENTATION ...... 14 1. Partnership arrangements ...... -14 2 . Institutional and implementation arrangements ...... 14 3 . Monitoring and evaluation of outcomes/results ...... 14 4 . Sustainability ...... 14 5 . Critical risks and possible controversial aspects ...... 15 6 . LoadCredit'Grant conditions and covenants ...... -19
D. APPRAISAL SUMMARY ...... 20 1. Economic and financial analyses ...... 20 2 . Technical ...... -22 3 . Fiduciary ...... 23 4 . Social ...... 23 5 . Environment...... 25 6 . Safeguard policies ...... 28 . 7 . Policy Exceptions and Readiness ...... 29 Annex 1: Country and Sector or Program Background...... 30 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ...... 41 Annex 3: Results Framework and Monitoring...... 42 Annex 4: Detailed Project Description ...... 48 Annex 5: Project Costs ...... 57 Annex 6: Implementation Arrangements ...... 59 Annex 7: Financial Management and Disbursement Arrangements ...... 61 Annex 8: Procurement ...... 66 Annex 9: Economic and Financial Analysis ...... 73 Annex 10: Safeguard Policy Issues ...... 76 Annex 11: Project Preparation and Supervision ...... 80 Annex 12: Documents in the Project File ...... 81 Annex 13: Statement of Loans and Credits ...... 82 Annex 14: Country at a Glance ...... 83 Annex 15: WFPKJNDP Accessibility and Food Insecurity Ratings ...... 85
Annex 16: Letter of Sector Policy ...... 86
Sierra Leone Map .IBRD 34148 & IBRD 34149 SIERRA LEONE
SL INFRASTRUCTURE DEVELOPMENT PROJECT (TRANSPORT)
PROJECT APPRAISAL DOCUMENT
AFRICA
AFTTR
Date: November 9,2005 Team Leader: David Stephen Rudge Country Director: Mats Karlsson Sectors: Roads and highways (52%); Ports, Sector ManagerAIirector: C. Sanjivi waterways and shipping (24%); Aviation (24%) Rajasingham Themes: Infrastructure services for private sector development (P) Project ID: PO78389 Environmental screening category: Partial Assessment Lending Instrument: Specific Investment Loan Safeguard screening category: No impact
[ ] Loan [ ] Credit X Grant [ ] Guarantee [ ] Other:
For Loans/Credits/Others: Total Bank financing (US$m.): 44.00 Proposed terms: Financing Plan (US$m) ci - _-_- - - I r ---I DuurcL: LUCal Foreign Total BORROWER 3.45 2.34 5.79 IDA Grant 11.59 32.41 44.00 Total: 15.04 34.75 49.79
~ ~~ Borrower: Ministry of Finance Freetown Sierra Leone Republic of Sierra Leone Sierra Leone
Responsible Agency: Office ofthe Vice President Sierra Leone
2 hual I 2.00 I 7.80 I 10.60 I 10.60 I 10.40 I 2.60 I 0.00 I 0.00 1 0.00 hmulativel 2.00 I 9.80 I 20.40 I 31.00 I 41.40 I 44.00 I 44.00 I 44.00 I 44.00 Project implementation period: Start December 6,2005 End: March 3 1,201 1 Expected effectiveness date: March 6, 2006 Expected closing date: September 30,201 1 Does the project depart from the CAS in content or other significant respects? [ ]Yes [XINO Re$ PAD A.3 Does the project require any exceptions from Bank policies? Re$ PAD D. 7 [ ]Yes [XINO Have these been approved by Bank management? [ ]Yes [ IN0 Is approval for any policy exception sought from the Board? [ ]Yes [ IN0 Does the project include any critical risks rated “substantial” or “high”? [XIYes [ ]No Re$ PAD C.5 Does the project meet the Regional criteria for readiness for implementation? [XIYes [ ]No Re$ PAD D. 7 Project development objective Re$ PAD B.2, Technical Annex 3 The overarching PDO is: to rehabilitate selected priority roads, port and airport facilities ofthe Recipient; and to support the regulatory and institutional reform and effective management ofthe Recipient’s road, port and airport sectors.
Project description Re$ PAD B.3.a, Technical Annex 4
Component A: Road Infrastructure and Management. Rehabilitation oftwo segments ofthe primary core road network, Bo-Kenema (69 km) and Makeni-Matotoka (37 km)as well as approximately 400 km in the “access-poor” districts ofKailahun, Kono, and Koinadugu plus other(s)acceptable to the Bank as well as support to reform and restructuring ofthe road sector.
Component B: Freetown Port Infrastructure and Management. The project will finance the expansion ofthe paved container stacking area, plus specialized equipment to meet internationally recognized environmental and safety standards, while supporting the implementation of an Action Plan for Port privatization.
Component C: Freetown International Airport Infrastructure and Management. Rehabilitation and strengthening ofthe runway; upgrading the turning loops and taxiway entrances to safely accommodate modem aircraft; and installatiodupgrading ofthe water and electricity supplies for security, sanitation, fire fighting and back-up supplies, while supporting SLAA’s efforts to increase efficiency and competitiveness.
Component D: Project Coordination. Project coordination and monitoring ofthe three sector- based components, through the previously established Coordination and Monitoring Unit (CMU) under the Office ofthe Vice President, including financial management and environmental and social safeguard expertise, plus quality assurance and procurement capacity, as well as a Master Plan Study for the International Airport and other studies to be identified.
3 Which safeguard policies are triggered, if any? Re$ PAD D. 6, Technical Annex 10
With regard to OP 4.01 (Environmental Assessment), the project was rated environmental :ategory B. Environmental analyses have been carried out for each component as follows: (i) Environmental and Social Assessment and Management Plan for Bo-Kenema and Makeni- Matotoka Roads; (ii)Port Environmental Management Plan for Freetown Port; (iii) Environmental Impact Assessment and Environmental Management Plan for Freetown tnternational Airport; and (iv) Environmental and Social Management Framework for the Feeder/Rural roads to be identified.
With regard to OP 4.12 (Involuntary Resettlement), the Government has prepared a Resettlement Policy Framework for the feederhral roads. Although it is not anticipated that project interventions will require land acquisition or will restrict access to natural or economic resources, this policy framework has been prepared to provide the appropriate guidance on resettlement and compensation, should the occasion arise.
Significant, non-standard conditions, if any, for: Re$ PAD C. 7 Board presentation: None.
Loadcredit effectiveness: i) Establishment ofProject Account with an initial deposit ofUS$90,000 by GOSL. ii) Satisfactory Financial Management arrangements are in place for management ofthe Project Finances, including the appointment ofa suitably qualified professional accountant to the CMU. iii) Satisfactory Project Implementation Manual. iv) Fuel levy raised to not less than US$0.08/litreYwith provisions in place for subsequent progressive increases to US$O. lO/litre by June 2007.
Covenants applicable to project implementation:
a) Independent technical and financial auditors satisfactory to the Association shall be appointed not later than May 2006 to carry out annual audits. b) An Independent Road Maintenance Fund and Board are to be established not later than end 2007, with the board mandated to commit the road funds only to prioritized programmed routine and periodic maintenance ofthe core road network, with emergency maintenance and any other maintenance funded from other sources. c) The Mechanical Services Unit (MSU) ofSLRA will be privatized as an independent commercial entity not later than end 2008; and Government will settle all SLRA equipment rental arrears due to MSU. d) The Fuel levy is to be raised to $0.08 per liter by March 2006 with provisions in place for maintaining the fuel levy rate in real terms and for subsequent increases to $0.10 per liter by June 2007, with further increases to $0.12 by the end ofthe project. e) Throughout the project, SLRA will pay MSUequipment rental charges.
4 f) The total cost of SLRA and SLRTA salaries and their administration and operating costs and any other oftheir costs which are paid from the road fund will be capped initially at the June 2005 level; and will be reduced to not more than 15% ofthe total road fund revenues by the end ofthe Project. g) As a basis for the container and cargo handling concessioning and or licensing transaction documents, SLPA will first carry out an environmental audit by an independent auditor ofthe environment and working practices within the designated area of operations, to establish the environmental liabilities for SLPNthe Government ofSierra Leone and the future private owners/operators. h) Prior to any concessioning and or licensing ofSLPA container and cargo handling services, arrangements agreed with SLPA employees and satisfactory to IDA are in place whereby SLPNGOSL is committed to making payments to retrenched employees ofthe severance entitlements applicable -- within a period oftime acceptable to IDA.
5 A. STRATEGIC CONTEXT AND RATIONALE 1. Country and Sector Issues Al.1 During the period of civil unrest (1995-1999) Sierra Leone’s transport infrastructure suffered from widespread destruction and lack ofmaintenance. Seriously degraded roads left whole sections of the country and isolated communities cut off from the rest of the country, while the Port of Freetown and Freetown International Airport underwent successive rounds of destruction, endangering the country’s economic lifelines to the outside world. A1.2 Prior to the outbreak of hostilities, Sierra Leone had a National Transport Sector Policy, which was developed with Bank support under the Road Rehabilitation and Maintenance Project (RRMP) -- (FY-93) IDA Credit No. 2451-SL for $45.0 million, which closed on June 30, 2001. This Policy provided the foundation for a multi-donor supported Ten Year Transport Sector Investment Plan (1995), with the Bank playing a coordinating role through the Transport Sector Project (TSP) -- (FY-96) IDA Credit No. 2895-SL for $35.0 million, which closed on December 31, 2004. As the security situation stabilized in 2001, Bank and other donor programs were reoriented toward emergency reconstructiodrehabilitation on the road network and restoration of port and airport operations. Additionally, the TSP financed in 2002 the National Transport Strategy and Investment Plan 2003-2007 (SLNTP), which updated the prioritized framework for immediate and longer term investments and lays out key sector policy reforms and strategies, focusing on support to the national reconstruction and poverty reduction programs. A1.3 In December 2004, Sierra Leone produced its final Poverty Reduction Strategy Paper (PRSP). The PRSP is founded on three pillars: (i)promoting good governance, security and peace; (ii)promoting pro-poor sustainable growth for food security and job creation; and (iii)promoting human development. The pro-poor growth strategy focuses on putting to use under-utilized capacity in the agricultural and mining sectors, expansion in manufacturing and services sectors, and higher public investment in infrastructure projects. Growth in agricultural production is strongly oriented toward food security, while parallel efforts are planned in export diversification and tourism. The PRSP recognizes the importance of accessibility and transport infrastructure for achieving the above goals: “The roads and transport sectors have tremendous potential and capacity for generating growth and economy-wide benefits. Their development, along with the energy sector, is a pre-condition for overcoming the major constraints facing the country’s economy because of the strong link between these sectors and the rest of the productive and social sectors.” Accordingly, the PRSP calls for 46, .effective and coordinated linkages and inventions in the productive sectors (principally agriculture fisheries and mining); the infrastructure sectors (roads and transportation) and the social sectors (health, nutrition, water, sanitation and education).” A1.4 Primary and feeder road development are among the PRSP Poverty Reduction Indicators for Pillar # 2. Moreover, the Food Security Strategy for Sierra Leone (September 2004) identifies poor road access as a “key factor inhibiting marketing of food”, and specifies “improvement of both major and farm access rural roads” as a strategic measure to achieve the President’s pledge that “no Sierra Leonean should go to bed hungry”. A1.5 In addition, the Country Assistance Strategy (CAS) dated May 5, 2005, was approved by the Board June 16, 2005. The CAS notes that “the PRSP serves as the basis for the CAS” and also states that “the CAS is aligned with the main pillars and the cross-cutting issues of the PRSP”. The Bank’s program confirms support to all 3 pillars, including support to the economic growth pillar through private sector development, infrastructure, agriculture and mining; in respect of which the CAS plans for the Bank to boost infrastructure by support to power and water and a major transport operation - the latter specifically in the form of the Infrastructure Development Project. The CAS notes that “growth will depend on the rehabilitation and expansion of Sierra Leone’s degraded infrastructure and on the
6 involvement of the private sector”, while also recognizing the need “to rehabilitate the dilapidated infrastructure in the areas of roads, port and air transport”. The CAS also notes that “roads development will be a critical element in the high-priority food security strategy”. The CAS also highlights and quotes much of the PRSP, while also stressing “the need for harmonizing donor inputs particularly with regard to infrastructure” and for “institutional development and capacity building in conjunction with investments”. Al.6 The National Commission for Privatization (NCP) has the responsibility for divestiture and private sector development. Part of the PRSP strategy relates to divestiture and privatization in transport and shipping sectors. As the country embarks on the implementation ofthis strategy, a number of issues specific to the transport sector stand out: Al.7 Roads: The official public road network of Sierra Leone totals about 11,000 km, ofwhich some 8,000 km are classified in the National Road System (NRS) and the remaining 3,000 comprise local networks and unclassified roads and tracks. Even the most essential of the primary core network has deteriorated to the point certain sections are impassable in the rainy seasons. The Sierra Leone Roads Authority (SLRA) is in the process of bringing the core and feeder road networks up to a minimum functional standard. Despite current donor commitments on the main and feeder roads, there remain major gaps and under-funding on the core road network, which still have to be brought up to a maintainable standard. At the same time, district linkages from the core road network on secondary and feeder roads are only partially covered by donor programs, with additional scattered community-based programs such as NaCSA designed to provide purely localized improvements not geared to overall connectivity to the main network. A1.8 To address the need for harmonizing the various donor approaches to the roads sector as recognizedsupported by the CAS, a workshop was held in Freetown May 2005, organized by the EU resident mission, All donors and Government representatives participated. Full details of the Bank’s proposed IDP were disclosed (together with the Government’s Draft Letter of Sector Policy) and these were discussed at the workshop together with other donor plans. The workshop fully endorsed the principles of the Draft Letter of Sector Policy and confirmed that the IDP strategy and detailed components are fully in accordance with Government priorities and well coordinated with other donor commitments and plans. The EU also participated in the IDP Appraisal Decision Meeting in which they again reaffirmed that the IDP had been prepared in close coordination with their representatives and that the proposed IDP fully complemented the EU’s plans and commitments in the road sector. A1.9 Government focus on post-war emergency works led to an abandonment of the original sector policy of network planning and management by SLRA, with private-sector implementation of engineering and maintenance works. Rather, SLRA has been under constant pressure to allocate Road Maintenance Fund resources (funded through road user charges) to “emergency” works implemented by force account. This has made it impossible to implement an annual maintenance program, and effectively stymies the development ofprivate sector participation in road works. The situation is further aggravated by the current Road Maintenance Fund setup, in which the Fund is directly managed by SLRA, who finds itself with an inherent conflict ofinterest and under constant pressure to respond to the ad hoc emergency demands. In addition, the current emphasis on feeder roads by several donors is leading to the development ofengineered roads for which there is no secure maintenance funding. A1.10 To address the above issues, Government, through the SLNTP, developed an overall strategy for road network management, which focuses on filling priority gaps in the core and feeder road networks, subject to maintenance funding, while providing basic access to isolated rural communities, in conjunction with community-based programs. The sector management issues are being addressed through further rationalization of road sector institutions in conjunction with the NCP. Under PHRD- financed preparation studies, an agreed Road Sector Management Action Plan is being drafted, which is built around: i) refining the establishment ofthe Road Maintenance Fund (through continued funding by
7 Road Users Charges plus any Government contributions) specifically for programmed road maintenance by priority, with the Fund managed and controlled by its own autonomous Board in lieu of the current SLRA management; ii) the funding of all emergency road maintenance works will be by separate Government funding of SLRA (with details drawn up under the Road Sector Management Action Plan Study); iii) the privatization of the existing SLRA Mechanical Services Unit (MSU) to an autonomous Mechanical Services Entity such that the MSU is separated entirely from SLRA and free to operate as a commercial plant hire company; and iv) ultimately restructuring SLRA as a service provider/projects management agency, which plans and implements programmed maintenance works and development projects. Government’s commitment to the above is confirmed in the Letter of Sector Policy (as finalized and agreed during the Negotiations). Al.11 Port: The TSP restored operations at the Port ofFreetown after years ofneglect and damage by civil unrest. This included physical investments in port infrastructure and equipment, and institutional support and assistance in moving toward a landlord port model. Although traffic has improved with increased ship calls, the Sierra Leone Port Authority (SLPA) has been plagued by low productivity, inefficient operations, insufficient maintenance and uncompetitive costs. In addition, further investment in infrastructure and equipment is needed to address the medium to long term handling capacity of the port and to meet internationally recognized environmental, safety and security standards. A1.12 Also, under the NCP supervision and initially with TSP and now IDP-PPF support, the port’s slipway is in the process of being sold and a management contract for Freetown - Tagrin ferry services tendered. In addition, spurred by the President’s June 2004 address, which expressed disappointment with port performance and called for accelerated action, the Government has embarked on the concerted program to transform the port to landlord status, where cargo operations are carried out by the private sector. The NCP has decided that the port reform will be done by the implementation of an Action Plan for the restructuring of SLPA as a landlord and the privatization of the core activities, through the concessioning of the container terminal and licensing to service providers for handling of non-container (break-bulk and bulk) cargo. The Action Plan, formulated with funding through TSP, includes three components: (i)transaction activities leading to privatization; (ii)activities related to the restructuring of the SLPA, including significant reduction in staff; and (iii)definition of the economic and technical regulatory functions associated with the revised SLPA structure. Initial stages of the Action Plan are funded by a Project Preparation Facility (PPF). Additionally, NCP has entered into an agreement with the Government of Ghana for technical assistance to SLPA from Ghana Ports and Harbors Authority (GPHA). GPHA is seconding for a twelve month period a General Manager to SLPA and providing departmental technical experts from time to time to assist in preparing and implementing operational guidelines fro SLPA departments. This support is complementary to the Action Plan and is aimed at achieving a clear break with past practices and introducing fresh management perspectives founded on the Ghana landlord port model. A1 .13 Linked to the above activities is the determination of appropriate investments in infrastructure and equipment, given the shifting responsibilities ofthe SLPA as a landlord entity and the desire to attract private investment, while providing adequate incentives to attract that investment. To this end, the PHRD grant has funded a technical, economic and environmental feasibility study for extending paving of the container stacking area, as well as identifying necessary safety, navigational and environmental equipment. Private sector involvement will include provision ofneeded cargo handling equipment. A1.14 Government’s commitment to the above is confirmed in the Letter of Sector Policy (as finalized and agreed during the Negotiations). A1 .15 Airport: The TSP also supported SLAA in restoring commercial operations at Freetown (Lungi) International Airport. The Sierra Leone Airports Authority (SLAA) has an extremely competent management structure which has successfully managed development funds and revenues to address priority infrastructure and equipment needs. However, further infrastructure and equipment inputs are
8 needed to meet internationally-accepted aircraft and passengers’ security and safety standards, while also replacing now obsolete automatic landing and communication equipment. SLAA also intends to pursue a quality improvement program with an emphasis on customer service, with training support. It is noted that SLAA has recently been hampered by maintenance commitments and costs associated with UNAMSIL operations, while not earning any revenue through associated landing fees. In addition, SLNA have defaulted on their Ground Handling concession fees. These issues were not foreseen by SLAA management and caused delays in SLAA payments to non-project suppliers and contractors. However, UNAMSIL has dramatically scaled back its operations and Government have confirmed that the SLNA concession will be terminated December 31, 2005, such that both will cease to negatively impact SLAA in future - and SLAA’s revenue stream is now assessed sufficient to finance the 9% counterpart funding envisaged in respect ofthe planned IDP investment. A1.16 Government’s commitment to the above is confirmed in the Letter of Sector Policy (as finalized and agreed during the Negotiations). 2. Rationale for Bank involvement A2.1 Given the PRSP and CAS orientation toward food security and inter-sectoral linkages, the Bank’s intervention in the transport sector is focused on achieving country-wide accessibility through reliable road access to and from rural areas, as well as ensuring adequate and safe port and airport facilities for passengers, exports and imports and development of private sector led economic growth. Reliable road access can only be achieved through a functioning core road network (with sustainable provisions for maintenance), from which secondary and feeder road links to the rural areas emanate. This basic accessibility is an essential precursor to the country’s pro-poor economic growth and national integration strategies as recognized by the CAS. A2.2 With the above objectives in mind and in the context of the President’s “No one goes to bed hungry” pledge, the project design team formulated a comprehensive project proposal, costed at approximately US$ 158 million. Taking account of other donor commitments in the sector, this proposal would include: (i)rehabilitation of four main roads (315 km), which would fill-in the remaining gapshe- establish the most basic all weather core road network - as the first basis for country wide connectivity; (ii)extend the connectivity to the basic core network through rehabilitation/ upgrading of some 1,000 km of key primary gravel roads that link rural and food producing areas to the essential core network, markets input supply, etc.; and finally (iii)extend the connectivity to the most distant rural communities and agriculture development through rehabilitation of approximately 400 km of additional secondary and feeder roads infrastructure linking communities to the core road network. However, in view of the available funding for IDP (US$ 44 million), the project cannot cover the comprehensive network-wide rehabilitation envisaged in the comprehensive proposal. Thus, only a limited number of components of the comprehensive package is being funded under the project, focusing on rehabilitation of two sections of the primary core road network (106 km) and prioritized gravel and feeder road infrastructure links to the rural areas (about 400 km), combined with priority infrastructure and equipment requirements in the port and international airport, as well as institutional support in all three sub-sectors. A2.3 The physical investments on the primary core road network have been identified in close coordination with other donor commitments, notably European Union (EU), Islamic Development BanWKuwait Fund, DFID and AfDB. On the secondary and feeder road networks, three target districts (Kailahun, Kono, and Koinadugu) have also been identified in conjunction with other donor commitments to: (i)address accessibility in the most “access poor” districts identified in the Food Security Strategy; and (ii)complement the Bank-supported National Social Action Project (NSAP), which is financing community level access improvements through NaCSA, so as to achieve connectivity to the main network and related services. Project interventions in the Port of Freetown have been selected to complement previous and ongoing operations by IDA. Institutional support for road sector management will build on
9 the continuing collaboration with EU-financed technical assistance to SLRA in the fields of road maintenance and financial management. A2.4 The Bank’s incremental contribution will be to fill important gaps in the country’s stock of essential transport infrastructure assets. In addition, the Bank has historically held the unique position of engaging the Government and other donors in a sector-based dialogue aimed at establishing policy and institutional reforms. The project will benefit from Sierra Leone’s participation in the Bank managed Sub- Saharan Africa Transport Policy Program (SSATP), which promotes exchange of knowledge and experience in road sector management among 30 member countries in Sub Saharan Africa. A2.5 The Sierra Leone Country Assistance Strategy for the period FY2006-2009 (Report No. 31793- SL dated May 5, 2005) has emphasized infrastructure, including transport infrastructure, as a key element in promoting growth and employment generation, particularly in addressing the need to address youth unemployment. 3. Higher level objectives to which the project contributes A3.1 The project will contribute to the objective of pro-poor economic growth stated in the PRSP, by facilitating physical access to markets, essential services and development opportunities over continuous road access and efficient, economical and safe shipping and air facilities. The project will also contribute to the PRSP’s objective of integration of the country and create the access and enabling environment for country wide security, including food security. The project will also support reconfiguration of the Road Fund and management improvements to SLRA and SLPA, in collaboration with NCP, which are aimed at improving efficiency, increasing private sector participation and promoting good governance, thus contributing to the Bank’s support to PRSP Pillar # 1.
B. PROJECT DESCRIPTION 1. Lending instrument The project will be financed under a sector lending instrument (SIL). 2. Project Development Objective and Key Indicators B2.1 Development objective: The overarching PDO is: to rehabilitate selected priority roads and port and airport facilities ofthe Recipient; and to support the regulatory and institutional reform and effective management of the Recipient’s road, port and airport sectors. B2.2 The specific roads component PDOs are in harmony with other donors: (i)to rehabilitate 106 km of selected priority primary roads to contribute to the restoration of fully trafficable all weather access over the primary core road network; (ii)to provide all weather connectivity/access beyond the primary core network to selected rural areas through 400 km of prioritized rural and feeder road infrastructure rehabilitation, using labor-based techniques to generate employment; and (iii)to ensure the sustainability ofthe physical investments through the establishment and associated capacity building of an Independent Road Maintenance Fund (in conjunction with the reorganization of the Roads Authority) implementing a prioritized maintenance program. B2.3 The specific PDOs of the Freetown International Port and Freetown International Airport components are: (i)to rehabilitate and upgrade the essential physical infrastructure to meet international safety and environmental standards and certification; and (ii)to improve the efficiency of operations through management capacity buildinghaining and, in the case of the port, through reorganization as a Landlord Port.
10 Outcome indicators: On the Road Network
0 Reduction in travel time on project roads; 0 Increase in usage ofthe project road;
0 Average distance traveled increases; 0 Number of person-days of employment generated by Project Road Construction and Maintenance; 0 Prioritized programmed maintenance is established and progressively increased. At the Port of Freetown
0 Improved performance on handling Port Container; 0 Increase in port break-bulk ships daily handling performance; 0 Mandatory environmental and safety measures as agreed under Marpol are addressed; 0 Increase in financial surplus for SLPA after depreciation and financial charges and before tax. At the Freetown International Airport
0 Airport complies with ICAO mandatory standards. OutputsResults Indicators by Component: Component 1: Road Infrastructure and Management. Sustainable all-weather access over selected sections of the primary road network and the connecting rural and feeder road infrastructure:
0 106 km ofprioritized core network rehabilitation. 0 400 km prioritized rural and feeder road infrastructure rehabilitation. 0 An Independent Road Maintenance Fund is established. 0 SLRA is reorganized to provide services to the Independent Road Maintenance Fund. 0 Mechanical Services Unit (MSU) of SLRA is privatized. 0 The Fuel Levy (funding road maintenance) is progressively increased to support prioritized programmed maintenance of a greater proportion ofthe classified road network. Component 2: Port of Freetown Infrastructure and Management. Competitive international port performance is improved and safer through extension of the port’s physical capacity, greater productivity, environmental equipment, and management improvements.
0 The container stacking area is extended to accommodate projected traffic levels and increased efficiency, plus associated berth rehabilitation and maintenance dredging. 0 Navigational aids, environmental and safety equipment are procured and installed to meet international standards. 0 SLPA commercial/management reform relating to restructuring to a landlord port, privatization of core activities and a social mitigation strategy, are accomplished, in line with agreement reached with the Bank. Component 3: Freetown International Airport Infrastructure and Management. International air trafJic and trade capacity is secured through: essential strengthening of the runway and turning loops; provision of new automatic landing and ground/air communication systems; enhanced water, sanitation and firefighting capability: plus full back- up of power supplies; and management training.
0 Cost-effective safety interventions (flying object debris) applied to the runway. 0 The turning loops and taxiway entrances are widened to safely accommodate modern aircraft. 0 Airport water supply is upgraded to ensure adequate fire fighting capacity and sanitary conditions throughout the airport.
11 0 Airport electricity supply is enhanced to meet the full back-up requirements necessary for safe operations. 0 A new automatic landing system is installed. 0 A new GroundAir Communications system is installed. Component 4: Proiect Coordination. Coordination of the IDP is managed professionally and in conformance with legal, fiduciary and safeguard requirements, as stated in the Grant Agreement. Selected sector studies are completed.
0 Component and overall project progress reports are completed by implementing agencies and CMUin conformance with agreed formats and submitted on time. 0 All fiduciary reporting requirements are met according to agreed timetables. 0 Technical and financial audits are contracted and completed according to agreed timetables. 0 Monitoring and Evaluation (M&E) indicators are reported on according to agreed timetable. 0 Environment and Social Management Plans are monitored and reported on according to agreed timetable. 0 Airport Master Plan Study is completed. 0 Other Studies to be identified completed. 3. Project components B3.1 Component A: Road Infrastructure and Management NJS$ 23.58m, Bank Financing US$ 22.53m). The project will finance the rehabilitation of two segments of the primary core road network, Bo-Kenema (69 km) and Makeni-Matotoka (37 km), as well as approximately 400 km in the “access- poor” districts of Kailahun, Kono, and Koinadugu plus other(s) acceptable to the Bank, to be selected on a priority basis to provide all-weather access from the core primary network to the rural areas to achieve maximum impact on food security and poverty reduction. A key element of Government’s strategy is to restore the essential links as a fundamental basis for poverty reduction, food security and national integration strategies. In the context of a PHRD-financed Road Sector Management Action Plan, the project will also continue to support reform and restructuring of the road sector, aimed at encouraging private sector participation and re-definition of government’s role away from force account works. This will include technical assistance and other support for the above-mentioned Action Plan, built around establishment of an independent Road Maintenance Fund with an autonomous Board and reorganization of SLRA; and review of management structure of user charge collection and business scope of SLRTA. The two primary project roads are major links in the country’s Easwest primary core road network, the Makeni-Matotoka road being part of the Northern link and the Bo-Kenema part of the Southern link. Traditionally, these two east-west axes have provided the most basic connection between Freetown and the rest of the country, from which most of the remaining primary and secondary roads emanate. A key element of Government’s strategy is to restore these essential links as a fundamental basis for enabling the delivery of health, education and administrative support activities throughout the country, addressing food security through access to agricultural extension, inputs and markets and achieving national integration. B3.2 Component B: Freetown Port Infrastructure and Management (US$ 10.75m: Bank Financing US$6.91m). In the context ofan Action Plan for SLPA conversion to landlord port status and privatization of core activities, the project will finance the expansion of the paved container stacking area, plus specialized equipment to contribute to meeting internationally recognized environmental and safety standards (particularly related to navigational aids, oil spills, waste management and safety and security management). The project will support the implementation of the Action Plan, involving: (i) concessioning the container terminal and licensing the bulk handling operations; (ii)restructuring SLPA, including revision oflegal status, staff reduction and social mitigation plan, development/management of the port’s land holdings, establishing financial modeling of charges and tariffs, completion of the sale of slipway assets and concessioning of ferry services; and (iii)redefinition of the port sectors technical and
12 regulatory functions in the context of its overall reform. The project also provides for additional institutional support to be identified during the course ofthe project on an as-needed basis. B3.3 Component C: Freetown International Airport Infrastructure and Management (US$ 9.75m: Bank Financing US$8.86m). The project will finance rehabilitation and strengthening ofthe runway; upgrading the turning loops and taxiway entrances to safely accommodate modem aircraft; and installatiodupgrading of the water and electricity supplies for security, sanitation, fire fighting and back-up supplies, plus provision of new automatic landing and ground/air communications systems. The project will also finance support to SLAA’s efforts to increase efficiency and competitiveness, through technical assistance and training. B3.4 Component D: Proiect Coordination cUS$ 4.00m; Bank Financing US$ 4.00m). The project will finance project coordination and monitoring of the three sector-based components, through the previously established Coordination and Monitoring Unit (CMU) under the Office of the Vice President, supported by TA. The CMU will include financial management and environmental and social safeguard expertise, plus quality assurance and procurement capacity provided by the TA. The project will also finance Technical (and Financial Audits) and subsidiary studies such as an update to the Master Plan Study for the International Airport, as well as other studies to be identified. 4. Lessons learned and reflected in the project design B4.1 Physical investments and institutional support. The project design reflects one of the main conclusions of the 2002 National Transport Strategy and Investment Plan, as developed under the previous Bank funded TSP, which has been formally adopted by Government. The strategy as formulated is based on physical investment by priority, accompanied by secure maintenance funding and transparent management, if the benefits of these investments are not to be short-lived. For this reason, the project design includes a mix ofprioritized infrastructure investments, institutional reform and capacity building. This approach has become all the more compelling, as the country emerges from the post-conflict “emergency” situation to one focused on achieving a stable physical and institutional environment, without which food security, access to markets and poverty reduction through economic growth cannot occur, Such considerations underline the project’s support to road sector management reform, which aims to reverse the current vicious cycle, which starts with increased force account emergency works, preventing the carrying out of prioritized annual road maintenance programs and stifling a stable contracting environment for consultants and contractors. B4.2 Quality of works. TSP experience has also revealed some shortcomings on quality of works and services carried out under domestic consultants, such that there is a need to address quality assurance in future projects. Accordingly, the IDP design pays particular attention to promoting professional standards and instituting quality assurance mechanisms through technical assistance and technical audits - the latter taking the form ofhalf yearly audits to ensure compliance with contract specifications and good working practice. B4.3 Monitoring Indicators. The latest quality review of the TSP noted that, although the M&E Framework Design is considered satisfactory, it could have been improved through a stronger link between project development objectives, outcomes and outputs (results). The monitoring system under IDP is more focused, simplified and attempts to draw direct relationships between component results and expected outcomes. In addition, the construction supervision and technical assistance consultants are to be responsible for collecting, reviewing and reporting the data on a quarterly basis - which should ensure professional data collection, analysis and timely recommendations regarding any corrective measures deemed appropriate. A previous quality review also noted that environmental management concerns were not consistently addressed by the implementing agencies. These concerns are addressed by: (i)initial strengthening of the CMU environmental and social management unit; and (ii)focusing its efforts on
13 working directly with the implementing agencies through a project Environmental and Social Management Policy Framework. 5. Alternatives considered and reasons for rejection B5.1 The original concept for IDP was a multi-sector project, reflecting a comprehensive development approach, including transport, water and sanitation and power sectors (which also included support to the Bumbuna Hydroelectric Scheme). However, because preparation of these components needed to proceed at different paces, it was decided to have three separate operations: (i)IDP, focusing on the transport network; (ii)a second operation focusing on rural watedsanitation, urban solid waste and general support to the power sector; and (iii)completion of the Bumbuna Hydroelectric Scheme. Also as noted in Section A.2, the project includes a limited part of the previously developed comprehensive package proposal, which was formulated in the context ofthe President’s “no one goes to bed hungry” pledge. C. IMPLEMENTATION 1. Partnership arrangements C1.l The Bank will continue its close collaboration with the European Union in supporting road sector management reform and institutional strengthening of SLRA. Specifically, the EU will continue its technical assistance to the restructured SLRA in road maintenance and financial management, while the project will focus on supporting the establishment of an Independent Road Maintenance Fund (IRMF). The project will also collaborate with the World Food Program in identifying priority rural roads to be rehabilitated within the context ofthe Sierra Leone Food Security Strategy. Studies for the preparation of the project are being funded under a Japanese- PHRD Grant. 2. Institutional and implementation arrangements C2.1 The project will be coordinated by the Coordination and Monitoring Unit (CMU) within the office of the Vice-president. Each implementing agency, that is, Sierra Leone Roads Authority (SLRA), Sierra Leone Ports Authority (SLPA), National Commission for Privatization (NCP) and Sierra Leone Airports Authority (SLAA) will be responsible for implementing and reporting on the components in their respective sectors. The CMU will be a “lifeline” link to funding for these agencies and will monitor their conformance with agreed action plans, available budget, safeguards and other Bank requirements. Disbursements will be centralized through one special account managed by the CMU. Progress reports by each agency and their consultants will follow a specified format and will be submitted to the CMU, who will transmit them to the Bank, with an Executive Summary. These arrangements will be laid out in the Project Implementation Plan. 3. Monitoring and Evaluation of outcomes/results C3.1 Drawing on lessons from IDP, the project will have results indicators tied to targeted project outcomes. As noted above, each implementing agency will monitor progress against agreed-upon results and outcome indicators, as shown in the Results Framework. Performance indicators will be reported in quarterly reports and audit reports. 4. Sustainability C4.1 The Government’s commitment to and ownership of the project may be seen in the Cabinet’s adoption of the National Transport Strategy and Investment Plan (2003-2007), which serves as the basis for the road management strategy and sector reforms supported by the project. In addition, the reforms in the port and road sectors are being implemented under the supervision ofthe NCP and are included in its Work Plan. Moreover, the reform of the SLPA to a landlord port has been given strong impetus by the President’s address ofJune 3,2004 on the transformation ofthe SLPA. C4.2 Critical to the sustainability ofthe project will be the establishment ofthe new Independent Road Maintenance Fund and restructured SLRA on a solid footing. A second critical factor will be
14 engendering a working cooperation between the Road Maintenance Fund, SLRA and SLRTA and the minimizing of administrative costs. The project has addressed these concerns in the design by placing a heavy emphasis on institutional support to these agencies, in collaboration with other donors. 5. Critical risks and possible controversial aspects C5.1 Government Commitment to Sector Reforms. Government’s support of policy and institutional reforms may not be sustained during the course of the project as short term realities and entrenched interests could take precedence over reform measures. This risk relates mainly to the road sector and port reforms supported by the project, as described below. These risks will be mitigated against, mainly in the form ofconditionalities or covenants tied to the investments. C5.2 Road Sector Reforms. Reform in the Road Sector consists of a series of interdependent actions aimed at: (i)securely funded programmed road maintenance for at least the most essential and prioritized primary core road network; and (ii)restructuring the way roads are managed and funded, emphasizing privatization and separating technical road management responsibilities (under SLRA) from maintenance funding (IRMF). This package ofreforms may be at risk or rendered less effective if the following were to occur:
0 Secure Road Maintenance Funding. (i)the Government, because of political pressure to keep the price of fuel low, may not raise and or maintain the fuel levy at a level sufficient to cover programmed routine and periodic maintenance requirements on at least the most essential primary core road network; and/or (ii)the Government may feel obliged to divert the fuel levy and other funds from the Road Maintenance Fund to non-programmed “emergency” works, as it has in the past. The first risk has been addressed through obtaining Government’s prior agreement in a signed Letter of Sector Policy, with associated disbursement covenants in the DGA to the effect that the fuel levy shall first be raised to US$O.O8/liter by effectiveness and to US$O.lO/liter by June 2007 and thereafter shall be progressively increased to adequately finance full routine and periodic maintenance of not less than 3000km of the road network by priority as funds allow (together with the administrative cost for the management and supervision of the network). The second risk will be addressed by providing technical support to the creation of the independent Road Maintenance Fund overseen by an independent Board of Directors with users’ representatives, which should create an institutionalized check on the allocation of Road Maintenance Fund moneys for programmed road maintenance.
0 Restructuring Road Sector Management. The restructuring of road sector management through the establishment of an Independent Road Maintenance Fund (IRMF) and Board, with SLRA restructured as a service provider, will require legislation/government commitment and formal endorsement - which can fail to materialize. The appointment of an independent board may also pose a risk - as the constitution of Sierra Leone requires that all such appointments be subject to presidential approval. The move toward privatization ofroad sector activities will also be at risk if the Government/SLRA does not fully privatize the equipment hire service (MSU), which would allow SLRA to continue its unprogrammed force account “emergency” works - effectively competing with local contractors for maintenance and other civil works. The privatization of MSU would also be jeopardized if Government fails to make good the SLRA rental charge arrears needed for MSU to secure the spare parts and or to replace equipment on schedule. Existing self interests within SLRA may also resist the reduction of force account activities. To mitigate against these risks, the project has: (i)all key issues agreed in principle in the Letter of Sector Policy - with associated disbursement covenants stipulated in the DGA; (ii) will coordinate closely with the national divestiture and privatization program being implemented through the National Commission for Privatization (NCP); and the EU with its technical assistance to SLRA.
15 C5.3 Capacity of the Domestic Construction Industry (Contracting and Consulting). Although the establishment of secure funding for programmed maintenance should provide a more stable contracting environment for the local consulting and contracting industry, it is not clear whether the private sector has the capacity to carry out this additional work to acceptable quality standards. This risk will be addressed by provision of quality assurance technical assistance and half-yearly technical audits by international experts for project funded investments, whose terms of reference will also include recommendations on how to raise capabilities and quality standards. It should also be noted that the failure to achieve secure and adequate funding for programmed maintenance and/or to effectively privatize the MSU will impact negatively on the development of the domestic private sector construction industry. C5.4 Port Reforms. Port reforms supported by the project involve actions to convert the current SLPA to a landlord port, through sale of assets, concessioning and licensing of core and non-core activities, as well as restructuring involving staff reductions. There are uncertainties and risks associated with this approach, notably:
0 Government Follow-through and Commitment. Previous port privatization initiatives in Sierra Leone have progressed extremely slowly, reflecting a reluctance ofthe Government to sell assets or completely delegate services to the private sector and to rather opt for halfway/"hybrid" transactions which cannot deliver effective service provision based on sound contractual relations and market principles. There is therefore a risk that the necessary reforms in the Action Plan will be diluted through incomplete restructuring or weak transaction arrangements and a true landlord port status will not be attained. This risk will be addressed by: (i)implementing the Action Plan under the auspices ofthe NCP through a dedicated Project Management Committee (PMC) with its own Technical Secretariat; (ii)continuing technical support to the PMC and Technical Secretariat throughout the Action Plan implementation period, with an emphasis on the quality of transaction documents and processes; and (iii)funding for SLPA infrastructure improvement is to be linked to the concessioning of the container terminal. Also, while entrenched labor interests may also resist actions involving staff reductions, these will be mitigated by development and support ofan agreed social plan for redundant staff.
0 Private Sector Response. Because ofthe low volumes involved, it is not clear that concessioning of the container terminal will attract the interest of the larger professional international terminal operators. To encourage robust private sector response, this risk will be addressed by project funded investments (some of which will be conditional on the successful container terminal concessioning) which will strengthen the overall attractiveness of the port, providing for a further extension of the paved container stacking area, rehabilitation of the quay wall, new fenders, dredging, navigational aids and environmental equipment.
0 Private Sector Monopoly and Regulatory Capacity. The volume ofcontainer traffic in the Port of Freetown only allows for one container terminal concession, thereby mostly excluding the possibility of creating competition for container handling within the port. Nonetheless, as has been the case elsewhere, benefits of private sector run container terminal are still expected to materialize, but the absence of moderating effect of direct competition will need to be addressed with adequate Government competency in economic regulation of the sector. Also, partial competition can also be encouraged by allowing RoRo vessels to have the choice of a stevedore other than the terminal operator and to berth outside the container terminal. C5.5 It is noted that The National Commission for Privatization (NCP) completed its divestiture plan in September 2003. Several privatization transactions are expected to begin in 2005. It is expected that these will include the National Power Authority, the Sierra Leone Road Authority, the Sierra Leone Port Authority and one or more commercial banks. To ensure transparency and accountability in these transactions, the NCP will publish clear and transparent procedures for the sale, transfer or disposal of equity. This will be among the triggers for continued Bank support ofNCP.
16 C5.6 Counterpart Funding for the Airport Investments. The Government’s waiver to UNAMSIL in respect of landing fees, combined with SLNA’s default in payment of its concession fees for Ground Handling services at the airport, have been significant issues in negatively impacting SLAA’s recent performance and revenue earning capacity. However, UNAMSIL has dramatically scaled back its operations (with a view to pulling-out altogether) and Government has confirmed in the signed Letter of Sector Policy that the SLNA concession will be terminated December 31, 2005. As such, both of these issues should cease to negatively impact SLAA in future - and SLAA’s counterpart funding capability should be assured. A dated covenant is included in the Legal Agreements regarding the termination of the SLNA contract. C5.7 Countrv-Specific and Regional Risks. The overall political and economic environment in Sierra Leone is considered high risk, given its history of instability, with management and governance issues. The above provisions for quality assurance and procurement technical assistance plus financial and technical audits are intended to address the governance and management issues.
17 Main Text, Table 1: Critical risks and possible controversial aspects Risks Risk Mitigation Measures Risk Rating with Mitigation To Project Development Objective 1. Fragile political and economic None IS , environment. I 2. Government commitment to reforms Conditionalities for: Negotiations, M I wavers. Effectiveness and Disbursement
Up-front MOUs with the entities; M amongst many entities Standardize prioritization criteria; Standardize service levels. Management TA; M Govt.commitment to hire equipment. Management TA; M (IRMF) is compromised Financial, Technical & Procurement audits. 4. Fuel Levy rate increases do not Rate to be set in US Dollars; M generate adequate maintenance funds Limit road network under IRMF maintenance to available funding. 5. SLRA does not fulfill its new role Management TA (EU funded); M NCP Oversight of SLRA restructuring (with Dm> TA); Additional TA as required; fiFinancial, Technical & Procurement audits. Port Component 1. Inadequate interest from qualified terminal operators Paving ofthe container stacking area; lM 2. Poor performance of the Build economic regulatory capacity; concessionaire and licensed operators International assistance in formulating, negotiating & overseeing the agreements; NCP oversight ofSLPA restructuring;
Quality Assurance oversight by CMU TA, M Value-added Bank supervision; Technical & Procurement audits. Project Coordination Component 1. Lack ofCooperation between CMU Clearly defined MOUs, recognizing the M & Implementing Agencies status ofthe Implementing Agencies; Implementation Technical Assistance; Technical Audit review; Bank supervision. CMUTNCapacity Building; M I consulting personnel Bank value-added supervision. Overall Risk Rating - M Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N (Negligible or Low Risk)
18 6. LoanICreditlGrant conditions and covenants C6.1 The conditions for Negotiations of the IDA Grant i) A substantially agreed draft Letter of Sector Policy which confirms Government’s commitment to the following, with time bound milestones. For Roads: (i)the establishment of a 2nd generation road fund with an independent board, together with the related enactment of the associated laws, to ensure the funding will be suitably prioritizedhargeted; (ii)the establishment of a suitable fuel levy rate and other road user charges sufficient to fund maintenance of the core road network, with firm provisions for progressive growth of the fuel levy to ensure sufficient maintenance funding to provide for maintenance of more of the network; and (iii)the privatization of the Mechanical Services Unit of SLRA to ensure the sustainability of the maintenance equipment and its availability for domestic contractor involvement in the contract maintenance of the roads; together with Government’s commitment to make good any SLRA equipment rental arrears; (iv) acceptance of a cap on SLRA and SLRTA salary, administration and service costs; (v) acceptance of the design concept of the feeder roads component to suit labor based construction and maintenance. For Airports: earmarking of SLAA’s revenues and existing management for the international airport only plus confirmation that SLNA’s Ground Handling concession contract will be terminated December 31, 2005 - after which SLAA will be free to advertise and award the concession to another company/enterprise. For Ports: (i)the GOSL commitment to implement the existing agreed Action Plan for reform of the port sector with the associated concessioning of the container handling operations which will trigger the container stacking area investment; (ii) GOSL’s commitment to payment ofseverance pay for the retrenched employees. For Project Coordination: (i)GOSL will continue to make available the existing CMU office, including all existing facilities, equipment and vehicles; and (ii)GOSL will agree to and accept responsibility for the implementation arrangements proposed, particularly the single project special account operated under the CMUand the half-yearly technical and financial audits. ii) An agreed Draft Procurement Plan for the first 18 months ofproject implementation.
C6.2 The conditions for Board Presentation None
C6.3 The conditions for Effectiveness of the IDA Grant (i) The Subsidiary Grant Agreements have been executed on behalf of GOSL and, respectively, SLRA, SLPA and SLAA; (ii) Establishment ofa Project Account with an initial deposit ofUS$90,000 by GOSL. (iii) Satisfactory Financial Management arrangements are in place for management ofthe Project Finances, including the appointment of a suitably qualified professional accountant to the CMU and the establishment of a financial management system in the CMU satisfactory to the Association. (iv) Satisfactory Project Implementation Manual. (v) Fuel levy raised to not less than US$O.O8/liter, with provisions in place for subsequent progressive increases to US$O. lO/liter by June 2007, with further increases thereafter; with provisions also in place to maintain the said rate in real terms and not the initial Leone equivalent.
19 C6.4 Legal Covenants Independent technical and financial auditors satisfactory to the Association shall be appointed not later than May 2006 to carry out annual audits. An Independent Road Maintenance Fund and Board are to be established not later than end 2007, with the board mandated to commit the road funds only to prioritized programmed routine and periodic maintenance ofthe core road network, with emergency maintenance and any other maintenance funded from other sources. The Mechanical Services Unit (MSU) of SLRA will be privatized as an independent commercial entity not later than end 2008; and Government will settle all SLRA equipment rental arrears due to MSU. The Fuel levy is to be raised to $0.08 per liter by March 2006 with provisions in place for maintaining the fuel levy rate in real terms and for subsequent increases to $0.10 per liter by June 2007, with further increases to $0.12 by the end ofthe project. Throughout the project, SLRA will pay MSUequipment rental charges. The total cost of SLRA and SLRTA salaries and their administration and operating costs and any other oftheir costs which are paid from the road fund will be capped initially at the June 2005 level; and will be reduced to not more than 15% of the total road fund revenues by the end ofthe Project. As a basis for the container and cargo handling concessioning and or licensing transaction documents, SLPA will first carry out an environmental audit by an independent auditor of the environment and working practices within the designated area of operations, to establish the environmental liabilities for SLPNthe Government of Sierra Leone and the future private owners/operators. Prior to any concessioning and or licensing of SLPA container and cargo handling services, arrangements agreed with SLPA employees and satisfactory to IDA are in place whereby SLPNGOSL is committed to making payments to retrenched employees of the severance entitlements applicable - within a period oftime acceptable to IDA.
D. APPRAISAL SUMMARY 1. Economic and financial analyses Economic analysis D1.l Core Road Network Investments. The proposed investments are expected to yield direct benefits to road users, through a reduction in vehicle operating costs. The roads within the project serve areas of good apcultural potential and since the trucking industry is by and large competitive, it is expected that at least part of the savings on vehicle operating costs would be passed on, over a period of time, to agricultural producers and consumers. The two project roads run through four ofthe country’s 13 districts: Bamboli, Tonkolili, Bo and Kenema, as well as providing the basic connecting links to the East. It is expected that the private bus service will respond to improvements in road conditions and extend coverage and increase frequencies, providing increased access to remote areas in the four districts and beyond. To the extent this materializes, rehabilitation is also expected to ultimately benefit all members of the community, through improvements in their accessibility to markets, competitively transported goods and in availability ofsocial services.
20 Sensitivity analysis has been carried out to assess the effects ofvariations in the values ofmajor cost and benefit items. With a 20% increase in costs and an equivalent decrease in benefits, the ERR is still a healthy 26.0% for the Bo-Kenema road; a similar variation in costs and benefits for the Makeni-Matotoka road leads to a lower but still healthy ERR of 17.2%. D 1.2 Rural / Feeder Road investments. The feeder roads to be included in the project have not yet been identified. These investments are expected to focus on low volume roads for which economic analysis based on vehicle operating cost savings is not appropriate. Instead, the roads selected for inclusion in this component will be prioritized according to the Agricultural Development plans for each district and the size of the population that would gain access through the proposed roads. This approach is expected to maximize the number ofrural people with access to an all-weather road and the markets, social services and poverty reduction benefits such access facilitates. For the selected roads, a cost effectiveness approach will be used in the design ofthe rehabilitation interventions. The designs will also be formulated around labor based technology for both construction and maintenance, both for sustainability and employment generation. D1.3 Port Investments. The project will finance the expansion of the paved container stacking area, plus specialized equipment to contribute to meeting internationally recognized environmental and safety standards (particularly related to navigational aids, oil spills, waste management and safety and security management). The civil works investments in the port, in conjunction with privatized container handling operations, are expected to improve efficiency and thereby yield savings in ship turn around times, and savings in equipment maintenance as well as maintenance of the terminal itself. The economic benefits of paving the container stacking area alone are less than robust (the majority of the benefits would not accrue directly to Sierra Leonean entities or nationals). A paved container stacking area is part of the package that would yield efficiency improvements with privatized container handling operations. This component is therefore to be linked to the concessioning ofthe container handling operations. D1.4 Airport Investments. The physical investments at the airport will comprise: (i)widening of runway shoulders and relocation of runway lights for compliance with ICAO regulations, taxiway and turning loop redesign for accommodation of modem aircraft; (ii)water supply enhancement for fire- fighting and sanitation; (iii)provision of stand-by power supply for airport safety and security; and installation of new automatic landing and groundair communication systems. These investments are justified on the basis of safety and security and for compliance with international regulations. As such, no economic analysis has been applied in their justification. Fiscal Imuact D1.5 Road Component. The fiscal impact related to this component is due to counterpart funding, estimated at US$ 1.05 m (including contingencies), which will be provided by the central government. Since the project is grant funded, there is no repayment ofprincipal and interest. No increase in the level of recurrent expenditures is envisaged in respect of pure routine and periodic maintenance of the core roads and the rural roads rehabilitated under the project, since all these costs will be funded from the new Independent Road Maintenance Fund, when it is established. Nor is any increase in the level ofrecurrent expenditures envisaged in respect ofpure routine and periodic maintenance of the
21 feeder roads rehabilitated under the project, since all these costs will now be funded by local district councils; and, in any event, the maintenance costs are being minimized through designing for labor-based maintenance. D1.6 Airport Component. As a revenue earning entity, SLAA will provide the counterpart funding for the airport component. D1.7 Port Component. Counterpart funding for the port component will be provided by SLPA. The severance payments for approximately 1200 staff made redundant during the conversion of SLPA to a Landlord Port will come from SLRA revenues, supported by Government budget as necessary. D1.8 Cost Recovery. Local contributions to investment costs (Counterpart funding) will be made directly by the revenue generating implementing agencies (SLAA and SLPA) while Government will finance the counterpart funds for the road investments. 2. Technical D2.1 The two project core road links to be rehabilitated represent a direct extension of the prioritized core road network already under rehabilitation (by other donors) to the limit ofavailable funding. The two core road links were first selected in conjunction with the SLRA for prioritized rehabilitation through engineering visual inspection. Detailed Feasibility and Design studies to international standards were then instigated, involving detailed road condition surveys and economic analysis ofvehicle operating cost benefits using the Bank’s HDM4 model. The preliminary design recommendations envisage initial rehabilitation of localized base failure and drainage reinstatement, plus asphalt concrete (AC) overlays to strengthen both roads, with the associated rehabilitation of the natural gravel shoulders. As such, this is conventional road rehabilitation and strengthening operation, with no particular issues. D2.2 The approximate 400h of rural/feeder road infrastructure to be rehabilitated have yet to be identified. However, the identification of the particular roads will follow the procedures established under the ongoing Bank NaCSA project, using community based selection at the district council level, advised by SLRA and the Ministry ofAgriculture regarding Agricultural development requirements in the respective districts, The design and specifications for the rural road works will adopt existing SLRA National standards. However, it is proposed that the design and specification of the feeder roads will be revisited to best suit least cost sustainable all-weather vehicular access through labor based construction and maintenance. This may involve use of materials which do not conform to internationally recognized specifications (and the current SLRA National Standards) which are suited to mechanized construction and maintenance. The AGETIP model of approach will also be considered, as necessary. D2.3 The physical airport components were initially selected in conjunction with the SLAA, as the next level of investment now needed after the Transport Sector Project inputs re-established basic services at the airport. The proposals were then the subject of full Feasibility and Design studies to ICAO international standards. The preliminary design recommendations envisage: a 50mm asphalt concrete overlay to the entire runway; widening of the taxi-way accesses and turning loops to accommodate modern aircraft configurations; raising and widening ofthe runway shoulders to ICAO standards, together with relocation of the runway lighting; an independent bore hole water supply for fire-fighting and sanitation; and establishment offull emergency power supplies; and installation ofnew automatic landing and groundair communication systems. The runway overlay is recommended as part of a phased strengthening intervention which will also mitigate against reflective cracking and the risk ofexposure of aircraft to Flying Object Debris (FOD) from unbound surfacing material. This solution allows for further overlays/strengthening should traffic/deterioration of the runway warrant it at a later date. D2.4 The physical port components were initially selected in conjunction with the SLPA, as the next level of investment now needed after the Transport Sector Project inputs re-established basic services at the port. The proposals were then the subject of full Feasibility and Design studies, including environmental protection and navigation investigations and designs for compliance with MARPOL
22 international standards. The preliminary design recommendations envisage: an approximately 2 1,000m2 extension of the block paving of the container stacking area and lighting towers; completion of the rehabilitation of the concrete quay wall and capping beam; provision of new fenders, bollards, ladders, navigation channel buoys and selected environmental equipment. The only technical issue concerns whether the rehabilitation of the quay wall and, to a lesser extent the additional stacking area paving, should be influenced by the concessionaires choice of container handling equipment. In particular, the concessionaire may wish to use a gantry crane, for which the front crane rail may warrant major design and construction changes to the quay wall and capping beam. Partly to mitigate this issue, it is proposed to delay commencement ofthe works until the concessionaire is selected. 3. Fiduciary D3.1 The overall assessment of fiduciary risks (for both Financial Management and Procurement) has been rated moderate for this project. The financial management and procurement arrangements under the project have taken into account the assessed risk and actions have been taken to address them. There will be one unit, the Coordination and Monitoring Unit (CMU), responsible for financial management under the project. The CMUwill manage the special account centrally and ensure the smooth implementation of the project activities. In respect of procurement, the implementing entities will be responsible for their agencies’ procurement, with support from the CMU staff and TA, which have previous experience in managing Bank funded projects, having implemented the Transport Sector Project. Implementing agencies and their consultants will be responsible for reporting (including the preparation of FMRs) under their respective project activities, whilst the CMU and TA will review, record, collate, consolidate and distribute the combined reports to IDA and the Government of Sierra Leone. Ownership will be assured through the maintenance and oversight of the CMU within the Office ofthe Vice-president 4. Social
04.I Summarize key social issues relevant to the project objectives, and specifi the project’s social development outcomes. The key social issue evolves around the provision of access through the rehabilitation of prioritized sections of the road infrastructure which will lead to improved socio-economic mobility and increased food security in the rural areas. The investments in the airport will lead to greater air traffic safety, while the key social issue associated with rehabilitation of the port, is the retrenchment of approximately 1200 staff. Road Component The two primary project roads are major sections of the country’s East/West core primary road network, the Makeni-Matotoka road being part ofthe Northern link and the Bo-Kenema part of the Southern link. In this context, these investments, together with other donor supported interventions, will benefit the population as a whole, but particularly the districts through which the roads pass, as well as the eastern, northern and southern regions who depend on connectivity to the rest of the country through the core road networks. At the district and local level, these benefits will be extended to rural populations through project-funded rural and feeder road infrastructure rehabilitation in the districts of Kailahun, Kono, and Koinadugu; plus other access-poor and food-insecure districts to be agreed, as funds allow, aimed at achieving connectivity to the primary core road network with maximum impact on poverty reduction and food security. The districts have and will continue to be selected to complement similar interventions in other districts by other donors, while also augmenting the Bank-supported NaCSA interventions - where the community roads rehabilitated sometimes lack connectivity to the main road network. No adverse social issues have been identified in respect of the primary core road interventions, as both Makeni-Matoka and Bc-Kenema roads involve rehabilitation of existing paved alignments, which were constructed clear of the long established land settlements with no stall holders or markets along the road
23 alignments. Although no land acquisition is being anticipated, the Environmental Unit under the Transport Sector Project, has prepared a Resettlement Policy Framework which will be applied should any occasion arise which would warrant compensation to any project affected people. Rural road infrastructure interventions will be identified through a participatory process spelled out in an Environment and Social Framework Policy (see Annex 10). A Socio-Economic Impact Assessment of Feeder Road System has been carried out by SLRA. Port Component Port reform supported by the project will involve privatization measures that will lead to retrenchment of approximately 1200 staff (from current SLPA staffing level of 1552 to 350 upon completion ofreform). It can be expected that the future concessionaire and licensed firms will recruit at least a small number of redundant SLPA staff. Additionally, casual labor of about 1000 will be affected, some ofwhom will still be needed for the concessioned port operations To address this issue the Action Plan for conversion of SLPA to Landlord Port status and privatization of core activities under PPF finding includes a Social Mitigation Activity, which will include a Socio-Financial Baseline Study that will develop a profile of SLPA employees affected by staff reduction and propose a Severance Action Plan, including a Communication Action Plan aimed at sharing relevant information with the concerned workers. The Severance Action Plan will ensure that retrenched casuals and staff are provided with fair severance packages in conjunction with retraining opportunities. Severance payments will be paid with Government funds. This retrenchment exercise will be monitored. Freetown InternationalAirport Component No adverse social issues are expected from the project investments. The rehabilitation of the airport does not directly affect local communities that are situated in the immediate surroundings. As such, only the HIV/AIDS/STD sensitizatiodawareness, counseling, treatment, prevention and clinic facilities which are to be provided as part ofthe civil works contract are considered relevant and within the scope ofIDP.
04.2 Participatory Approach: How are key stakeholders participating in the project? What are the mechanisms to ensure stakeholder participation? For the two primary project roads (Makeni-Matotoka and Bo-Kenema), consultations were held during the project preparation with local officials and NGOs in the Southern, Northern and Eastern Provinces and in the Districts ofBo and Kenema. For the rural/feeder road infrastructure investments, consultations will be carried out during the initial screening and selection of the subprojects, as specified in the Environmental and Social Management Policy Framework. The Airport Environmental Impact Assessment and Management Plan included an extensive socio-economic sample survey and focus group discussions of people in surrounding communities. As part of the Port reform supported by the Bank, consultations will be carried out with those employees and workers who will potentially be made redundant under the privatization reform
04.3 How does the project involve consultations or collaboration with NGO’s or other civil society organizations? The Road Component has been designed in the context ofthe National Transport Strategy and Investment Plan (2003-2007) which was completed in 2002, and which included a series of regional workshops on road priorities at the national and regional levels. The project team has had a number of meetings on reform ofthe port sector, including several discussions on needed labor redundancies with the affected labor unions. A participatory NCP workshop on the port reform held in October 2004 for all stakeholders was attended and freely reported on by a number of journalists.
24 04.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes? Socio-economic analysis, by consultants or by the relevant parastatal, have been carried out for the feeder roads, airport and port components. An Environmental and Social Development Specialist has been recruited to the CMU and has worked on project issues for over a year. This position will be maintained and supported by technical assistance periodically. 04.5 How will the project monitor performance in terms of social development outcomes? Given that the PDOs focus on provision of access as an enabling environment for meeting the PRSP and CAS objectives (for accessibility to social services, food security, markets, shared development opportunities) the performance indicators are similarly focused on monitoring the extent/effectiveness of the access provided. However, in addition to the formal project PDOs and M&E provisions, it is proposed to separately fund and study the detailed social development outcomes at the local community level which are directly attributable to the rural and feeder road infrastructure rehabilitation works - for which a baseline survey will be conducted FY 2006 for the purpose of designing an effective monitoring and evaluation system based on social indicators. 5. Environment
D5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the sign8cant issues and their treatment emerging from the analysis. The project components will include activities which have a positive impact on the environment and will also include mitigation measures for potential adverse impacts. Road component Primary Road Network. No major environmental issues exist on the project-financed primary road investments, Makeni - Matotoka and Bo - Kenema. These investments involve rehabilitation of existing paved alignments, which were constructed clear of the long established land settlements with no stall holders or markets along the road alignments. However the design study for each project includes an Environmental and Social Management Plan, which assesses environmental issues and specifies mitigation measures needed during the construction and operational phases. The mitigation plan specifies contract clauses for environmental mitigation and measures to mitigate the risk of HIV/AIDS and responsibility for regular monitoring and reporting. Rural Roads. Since the location of the rural and feeder road infi-astructure to be rehabilitated is not yet known, a procedural framework for implementing the environmental and social management process in the selection, planning and implementation of these subprojects has been developed. The Environmental and Social Management Framework (Annex 10) defines standard procedures and methods for incorporating environmental and social concerns in the selection, planning and implementation of all individual gravel and feeder road sub-projects carried out under the project. The mitigation plans will specify contract clauses for environmental mitigation and measures to mitigate the risk ofHIV/AIDS and responsibility for regular monitoring and reporting. Port Component No significant environmental issues are anticipated on the project-financed port investments, as all the physical works are planned within the port’s existing secure industrial area. An Environmental Assessment and Management Plan have been prepared. This includes sampling of the sea bed to determine that no toxic materials will be dredged. In addition, an environmental audit will be prepared to establish baseline environmental conditions, which will be incorporated into the concession agreements. IDP will provide funding for environmental and safety management equipment, which would include facilities for receiving ships’ waste and equipment to address environmental accidents such as oil spills at
25 the port. A study has already been carried out (“Maritime Pollution and Legislation”) which focuses on management of oils spills in the harbor and other contingencies. It was funded by the International Maritime Organization. Freetown International Airuort Component No adverse environmental issues are anticipated on the project-financed airport investments. An Environmental Impact Assessment and Environmental Management Plan have been prepared as part of the feasibility and design studies. The findings include an extensive socio-economic survey of surrounding communities, although it has been determined that the project’s scope would not affect them. The Environmental Impact Assessment and Management Plan also assesses environmental issues and specifies mitigation during the construction and operational phases. The mitigation plan specifies contract clauses for environmental mitigation and measures to mitigate the risk of HIV/AIDS and responsibility for regular monitoring and reporting.
05.2 mat are the main features of the EMP and are they adequate? (a) Environmental and Social Management Framework for World Bank Funded Rural and Feeder Road Rehabilitation and Maintenance Works; (b) Project Specific Environmental and Social Management Plans for the Primary Roads already selected for rehabilitation; (c) Freetown Port Environmental Management Plan of which the priority actions will be financed under the IDP. The future private operator needs to prepare his own Safety, Health and Environmental Management Plan to be implemented by the private operator’s SHE (Safety, Health and Environment) Unit. Phasing of SHE actions to be implemented by the private operators will be agreed on. Over time the Freetown port will need to comply with the MARPOL 73/78 requirements. (d) Environmental and Social Management Plan (ESMP) for the rehabilitation of 106 km of paved roads, This ESMP will be part of the bidding documents. Oil pollution control, waste management and selection and rehabilitation of borrow pitdquarries are some environmental issues to be addressed by the contractor. The contractor will appoint an Environmental Site Officer who will be responsible for compliance with the ESMP; (e) EA for rehabilitation of the Lungi airport. The EA for the Lungi airport rehabilitation is comprehensive. Environmental management actions to be implemented include: erosion control, appropriate drainage, waste management, appropriate storage, handling and disposal of hydrocarbons, improved safety, and occupational health issues during construction and operation of the airport. (0 Environmental Audit for the Freetown Port. The Environmental Audit will take the form of an independent review of the current state of the environment and working practices within the designated area ofoperations, to establish the environmental liabilities for SLPNthe Government of Sierra Leone and the future private investor. This environmental audit will also spell out the Safety, Health and Environmental Management requirements for the future private operator. This includes among others: proper waste management, occupational health issues, safety, an acceptable policy on HIV/AIDS, etc. The environmental audit will also identify if the proposed areas to be dredged contain polluted sediments. The Environmental Audit will also identify appropriate dredge spoil disposal sites. The IDP will comply with the World Bank Group’s Safeguard Policies and Environmental, Health and Safety guidelines as described in the Pollution Prevention and Abatement Handbook. The following chapters apply to the IDP: Airports, Port & Harbor Facilities, and Roads and Highways. The guidelines
26 mentioned in these chapters will be part of the legal documents. These chapters apply to the respective project components.
D5.3 For Category A and B projects, timeline and status of EA: The following environmental and social documentations were disclosed on May 9,2005:
0 Environmental and Social Assessment and Management Plan for Bo-Kenema and Makeni- Matotoka Roads. 0 Environmental and Social Management Framework for Feeder/Rural Roads. 0 Resettlement Policy Framework for Feedermural Roads. 0 Port Environmental Management Plan for Freetown Port. D5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA report on the environmental impacts and proposed environmental management plan? Describe mechanisms of consultation that were used and which groups were consulted? The two primary project roads are major sections of the country's EastWest primary core road network, the Makeni-Matotoka road being part ofthe Northern link and the Bo-Kenema part of the Southern link. In this context, these investments, together with other donor supported interventions, will benefit the population as a whole, but particularly the districts through which the roads pass, as well as the eastern, northern and southern regions which depend on connectivity to the rest of the country through the core road networks. Consultations were held during the project preparation with local officials and NGOs in the Southern, Northern and Eastern Provinces and in the Districts ofBo and Kenema. The primary stakeholders for the feededrural road infrastructure investments will be residents in the districts of Kailahun, Kono, and Koinadugu, and other access-poor districts to be agreed (as funds allow) aimed at achieving access and connectivity to the primary core road network for maximum impact on poverty reduction and food security. Consultations will be carried out during the initial screening and selection of the subprojects, as specified in the Environmental and Social Management Policy Framework. As part of the Port reform supported by the Bank, consultations will be carried out with employees and workers who will potentially be made redundant under the privatization reform. The Airport Environmental Impact Assessment and Management Plan included an extensive socio-economic sample survey and focus group discussions of people in surrounding communities, although it was determined that the scope ofthe project will not affect them.
D5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the environment? Do the indicators reflect the objectives and results of the EMP? During preparation and implementation of the new Infrastructure Development Project, the CMU of MOTC has been strengthened through recruitment and training of the new environmental specialist in order to ensure systematic monitoring of environmental and social development issues; and to assist consultants and contractors seeking guidance. Recently, environmental units have been established in Sierra Leone Airports Authority (SLAA) and Sierra Leone Road Transport Authority (SLRTA); and the Sierra Leone Roads Authority (SLRA) is in the process of creating one. The environmental units consist of engineers who have received orientation training fkom the CMU environmental specialist, with appropriate reference guidelines. The CMU environmental specialist has also established a HIV/AIDS Management Team for the Transport Ministry which includes ministry and parastatal officials and also other stakeholders such as representatives ofthe motor driver's union. The major activities so far include the inaugural meeting and a two day workshop. Another achievement is the fact that the CMU environmental specialist has been appointed as a member ofthe Steering Committee ofthe Environmental Division of the Ministry of Lands, Country Planning and the Environment. In general, the CMU
27 environmental unit functions as a resource center for the parastatals and it provides information and support on environmental issues. Comments have also been provided by the unit on the feasibility studies for the port, airport and rural roads and the unit has prepared the required safeguard documentation for IDP (Resettlement Policy Framework and Environmental and Social Management Framework). Furthermore, the project has provided for training on World Bank safeguard policies, to the relevant ministry, to parastatal units and to the CMU, both in Sierra Leone and at a workshop on safeguards in Ethiopia in 2004. 6. Safeguard policies 06.I Are any of the following safeguardpolicies triggered by theproject? Main Text, Table 3: Safeguard Policies Triggered by the Project Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP/GP 4.0 1) [XI Natural Habitats (OP/RP 4.04) Pest Management (OP 4.09) Cultural Property (OPN 1 1.03, being revised as OP 4.1 1) Involuntary Resettlement (OP/BP 4.12) Indigenous Peoples (OD 4.20, being revised as OP 4.10) Forests (OP/BP 4.36) Safety ofDams (OP/BP 4.37) Projects in Disputed Areas (OP/BP/GP 7-60)' Projects on International Waterways (OP/BP/GP 7.50)
06.2 Describe provisions made by the project to ensure compliance with the applicable safeguard policies. With regard to OP 4.01 (Environmental Assessment), the project was rated environmental category B. Environmental analyses have been carried out for each component as follows: (i)Environmental and Social Assessment and Management Plan for Bo-Kenema and Makeni-Matotoka Roads; (ii)Port Environmental Management Plan for Freetown Port; (iii)Environmental Impact Assessment and Environmental Management Plan for Freetown International Airport; and (iv) Environmental and Social Management Framework for the Feedermural roads to be identified. With regard to OP 4.12 (Involuntary Resettlement), the Government has prepared a Resettlement Policy Framework for the feeder/rural roads. Although it is not anticipated that project interventions will require land acquisition or will restrict access to natural or economic resources, this policy framework has been prepared to provide the appropriate guidance on resettlement and compensation, should the occasion arise. All safeguard documentations were disclosed in country and in the Infoshop on May 9,2005.
* By supporting the proposedproject, the Bank does not intend to prejudice thejnal determination of the parties' claims on the disputed areas
28 7. Policy Exceptions and Readiness
There are no policy exceptions required for the project. The project isjudged ready for implementation as the following preparatory activities have beedor will be completed before effectiveness: (i) Fiduciary arrangements in place. (Recruitment ofFinancia1 Management Specialist is a condition of effectiveness.) (ii) Project staff and consultants mobilized. (iii) Counterpart funds have been budgeted for the initial year and will be deposited before effectiveness. (iv) Tender documents for first year's procurement to be prepared. (v) Disclosure requirements met. (vi) M&E capacity is in place and principal indicators have been agreed on.
29 Annex 1: Country and Sector Background REPUBLIC OF SIERRA LEONE: Infrastructure Development Project
Historical Background 1. During the period of civil unrest (1995 - 1999) Sierra Leone’s transport infi-astructure suffered from widespread destruction and lack of maintenance. Seriously degraded roads left whole sections of the country and isolated communities cut off from the rest ofthe country, while the Port ofFreetown and Freetown International Airport underwent successive rounds of destruction, endangering the country’s economic lifelines to the outside world. 2. Just prior to the onset of the civil war, the Government formulated a National Transport Sector Policy, with World Bank support. This Policy, based on a participatory process, constituted a blueprint for improving the efficiency, service quality and availability ofroad, air and maritime transport services. Presented to a Donors’ Conference in June 1995, the Policy provided the foundation for a Ten Year Transport Sector Investment Plan, which was supported by the World Bank through the Transport Sector Project (TSP), together with a number of other donors. Unfortunately, most of these activities were abandoned during the particularly severe periods ofunrest (mid 1997 and early 1999). 3. As the situation began to stabilize in mid 2000, a number of original donor-supported activities resumed, but were mainly re-oriented to support emergency reconstruction needs. Certain main trunk and secondary roads were temporarily opened up through spot improvements (financed primarily by the European Union and TSP), and a labor intensive feeder road program was instituted through TSP, with growing support fi-om other donors and NaCSA. TSP also financed basic infrastructure and institutional support, which enabled the Port of Freetown and the Freetown International Airport to resume limited operations. 4. Since 2001, with the elaboration of the Interim Poverty Reduction Strategy Paper (I-PRSP) (June 2001) and the National Recovery Strategy (NRS), attention returned to broader sector planning and management issues enunciated in the original Policy, albeit within the revised context of the NRS and poverty reduction concerns. As a basis for this, TSP financed a revised National Transport Strategy and Investment Plan 2003-2007 (SLNTP), which updated the original Ten Year Investment Program. Approved by Cabinet, the SLNTP provides the framework for donor investments and lays out a number of key policy reforms and strategies for achieving improved transport services, notably: (i)filling major gaps in the nation’s road, air and port infrastructure, to enable access to markets, social services and development opportunities; (ii)rationalizing road network management, with an emphasis on private sector involvement, to ensure systematic and sustainable maintenance of the core network, with connectivity to rural areas; (iii)outsourcing ofnon-core functions in the Freetown Port and reorganization toward a “landlord port” model; and (iv) enhancing safety and service quality to international airport users. Country Development, PRSP and CAS Framework 5. The broken web ofthe road network, poor accessibility to the rural areas at best is recognized as major impediments to the country’s recovery strategy, national integration and sustainable economic growth. Poor physical access hampers efforts at re-integrating entire regions, displaced and disenfranchised persons, provision of basic services and rebuilding the economic fabric of the country. The current National Recovery Strategy (NRS) Assessment Report (December 2003) similarly focuses on roads and road maintenance as a key objective, namely: “To increase physical access to basic social services and markets through improved and sustainable
road maintenance. ’I (NRS Assessment - Final Report, p. 69)
30 6. The NRS Report draws directly from the SLNTP in articulating the following specific objectives: e “removing bottlenecks in the road network in support of economic recovery programs, with priority given to areas such as Kailahun, Koinadugu and Kono e completion of longstanding donor-supported projects for rehabilitating primary and seconday road networks encouraging appropriate labor intensive technologies and local resource use to generate jobs e increasing the role of the private sector in road development and maintenance e establishing a framework for building the capacity of local authorities and communities to manage
local networh. If (NRS Assessment - Final Report, p. 69) 7. In April 13, 2005, Sierra Leone completed its Poverty Reduction Strategy Paper (PRSP) [Report # 31775-SL]. The PRSP is founded on three pillars: (i)promoting good governance, security and peace; (ii)promoting pro-poor sustainable growth for food security and job creation; and (iii)promoting human development, The pro-poor growth strategy focuses on putting to use under-utilized capacity in the agricultural and mining sectors, expansion in manufacturing and services sectors, and higher public investment in infrastructure projects. Growth in agricultural production is strongly oriented toward food security, while parallel efforts are planned in export diversification and tourism. The PRSP recognizes the importance ofprovision of access and essential infrastructure as the fundamental precursor for achieving the above goals: 8. “The roads and transport sectors have tremendous potential and capacity for generating growth and economy-wide benefits. Their development, along with the energy sector, is a pre-condition for overcoming the major constraints facing the country’s economy because of the strong link between these
sectors and the rest of the productive and social sectors. ” Accordingly, the PRSP calls for “...effective and coordinated linkages and inventions in the productive sectors (principally agricultural andfisheries); the infrastructure sectors (roads and transportation) and the social sectors (health, nutrition, water, sanitation and education). ’’ 9. Moreover, the Food Security Strategy for Sierra Leone (September 2004) identifies poor road access as a “key factor inhibiting marketing of food”, and specifies “improvement of both major and farm access rural roads” as a strategic measure to achieve the President’s pledge that “no Sierra Leonean should go to bed hungry”. 10. Primary and feeder road development are among the PRSP Poverty Reduction Indicators for Pillar # 2. In addition, divestiture and privatization in transport and shipping sectors form part of the PRSP strategy for redefining the role ofgovernment in the economy and creating opportunities for private sector development. 11. In addition, the Country Assistance Strategy (CAS) dated May 5, 2005, was approved by the Board June 16,2005. The CAS notes that “the PRSP serves as the basis for the CAS” and also states that “the CAS is aligned with the main pillars and the cross-cutting issues of the PRSP”. The Bank’s program confirms support to all 3 pillars, including support to the economic growth pillar through private sector development, infrastructure, agriculture and mining; in respect of which the CAS plans for the Bank to boost infrastructure by support to power and water and a major transport operation - the latter specifically in the form of the Infrastructure Development Project. The CAS notes that “growth will depend on the rehabilitation and expansion of Sierra Leone’s degraded infrastructure and on the involvement of the private sector”, while also recognizing the need “to rehabilitate the dilapidated infrastructure in the areas of roads, port and air transport”. The CAS also notes that “roads development will be a critical element in the high-priority food security strategy”. The CAS also highlights and quotes much of the PRSP, while also stressing “the need for harmonizing donor inputs particularly with regard to infrastructure” and for “institutional development and capacity building in conjunction with investments”.
31 Roads 12. Road Network. The official public road network of Sierra Leone totals about 11,000 km, of which some 8,000 km are classified in the National Road System (NRS) and the remaining 3,000 km are made up of local networks and unclassified roads and tracks. About half the NRS (4,000 km) includes feeder roads, while the other half is divided between secondary roads (1,900 km) and primary roads (2,100 km). Currently, 642 km (about 30 percent ofthe core network) is classed as paved, and the rest is gravel - although almost all the paved and gravel roads had deteriorated to a state ofvirtual collapse, with the recovery still far from complete. Certain sections of the paved core road network require full rehabilitation, while others are simply in need of an overlay to preserve existing assets. Certain key gravel roads with high traffic levels merit upgrading to paved standard to be maintainable, all subject to availability offunds.
Subtotal Class A (Primary) Class B (Secondary) Bituminous Unpaved Subtotal Class B (Secondary)
13, Sector Management. Management of all public roads in Sierra Leone has been the responsibility ofthe Sierra Leone Roads Authority (SLRA), since its creation by an Act of Parliament in 1992. The Act makes provision for SLRA to delegate its responsibilities for certain roads to local government bodies. It is expected that some 3000 km, now determined as being outside the NRS, will be delegated to these bodies when they have acquired the capability to maintain them, although, responsibility for their rehabilitation is still deemed to be that ofthe SLRA. Maintenance ofthe road network is financed through a Road Fund, whose receipts come from a user levy attached to the price offuel and fees collected by the Road Transport Authority (RTA) for vehicle and driver licensing and registration. 14. The Road Fund can be characterized as a “Second Generation” Road Fund (fuel levies and other user fees are channeled directly to the Fund), funds are first used to pay the administration costs of SLRTA and SLRA, which amount to 2535% (2002 through 2004) of the revenue collected, before the balance is directly managed by the SLRA; while SLRA is also responsible to Government for maintaining the entire road network, including emergency maintenance. This has led to conflicting responsibilities within SLRA, particularly the difficulty of focusing on programmed routine and periodic maintenance when the emergency maintenance backlog is still prevalent; and this fire-fighting has hindered its ability to concentrate on its core network planning and management function. As a result, since 2003, a large portion ofRoad Fund resources were allocated to “emergency” maintenance works implemented by force account. This has effectively precluded implementation of the maintenance program, as well as the promotion of private sector participation in road works. This situation has been aggravated by the low level of available resources in the Road Fund, which has been sufficient to maintain only about 1,500 km of the core network. The inadequate funding is due to the fact that until November 2003, the fuel levy had not been increased by Government as agreed in the TSP - and the real value of the fuel levy had
32 actually declined. Despite provisions for quarterly increases in the November 2003 adjustment, no further increase has been forthcoming. 15. In a related issue, the Government’s strategy to commercialize and privatize the Mechanical Services Unit (MSU), the primary hire-out supplier of road construction and maintenance equipment in the country, has moved extremely slowly, due primarily to SLRA’s failure to pay for the equipment it had hired. As such, MSU’s ability to operate profitability and to expand the equipment fleet has been adversely affected by SLRA’s payment arrears, requisitioning of equipment, together with continued direct management. Resolution of this problem lies at the heart of establishing a commercially viable construction industry and re-establishing SLRA as a planning and management entity. The separation of MSU from SLRA is now deemed essential to serve the domestic contracting industry and programmed maintenance, instead ofGovernment’s emergency maintenance demands by force account. As most local contractors do not have their own equipment, the capacity of this service (currently under SLRA) is essential to ensuring that local capacity can respond to road construction and maintenance requirements. With TSP support, a commercialization program had been implemented - and the MSU had been reorganized in a form suited to a semi-autonomous and well-run organization, although, all management of the MSU has remained firmly within the control of SLRA. So, no spare parts are procured and no equipment is deployed without the approval of the SLRA DG. 16. In view of the above, a number of new initiatives are to be implemented, as agreed with the Government and detailed in the agreed Letter of Sector Policy. Future emergency maintenance will be funded separately by Government, with funds up-front to hire the necessary equipment. In addition, the Government has agreed further rationalization of road sector management. The centerpiece ofthis effort will involve the creation of an independent autonomous Road Maintenance Fund, separate from SLRA, with an independent Board and road user representation. SLRA will become a service provider to the Road Maintenance Fund, responsible for technical planning and management ofthe road network, as well as a contracting agency. This reform will require a restructuring of SLRA, which will be carried out in close coordination with the National Commission for Privatization (NCP). 17. Current Investments and Programs. Apart from its “fire-fighting”/emergency maintenance demands, the Sierra Leone Roads Authority (SLRA) is endeavoring to address the major task ofbringing the core and feeder road networks up to a minimum functional standard. This is being supported by various donor projects, HIPC funds, NaCSA and NCDDR-related activities. In addition a number of ad hoc initiatives are still being carried out by UNHCR, UNAMSIL and NGOs in some of the rural communities. 18. Faced with an acute shortage of funds, both from domestic sources and external donors, there is a need to prioritize investment and maintenance resources -- with the current fuel levy of US$O.O6/liter sufficient for maintenance of only approximately 1000 - 1500 km of the network. The total network is summarized below in Table 2.
33 19. The table below summarizes current and planned projects for the road network. All these efforts are coordinated through a Coordinating Committee, chaired by SLRA, which meets monthly.
34 Annex 1. Table 3: DONOR FUNDED ROAD REHABILITATION AND MAINTENANCE Road/Area Description Approximate cost (US$ x m) CORE ROAD NETWORK EU * Masiaka-Makeni Cehabilitation I 13.64 ?avement Overlay Masiaka-Bo A6iA4 168 ?avement Rehab 33.43 Songo-Mo yamba-Moyamba A2lA5 108 iealign./Gravel 3.31 Jct. Freetown-Conakry Hwy (1) A3 93 iealign./Gravel 21.59 Pendembu - Kailahun - A24 84 Spot Regravel. 0.95 Koindu Koidu - Kurubonla A19 96 Spot Regravel. 1.05 Panlap - Kamakwie B15 88 Spot Regravel. 0.92 Maintenance and spot 1,000 Spot improvement and 10.06 Improvement ofpriority roads naintenance and urban roads 9 ACP SL 5 Subtotal EU 1,744 84.95 Kuwait Fund/OPEC/BADIA Peninsula Road Tokeh-Kent Section Pavement Rehab 19.13 Lumley-Tokeh Section A1 24 Pavement Rehab 17.45 Hillside Road New construction 11.84 Subtotal Kuwait 48.42 Fund/OPEC/BADIA DFID Culverts & Bridges between 1Culverts & Bridges No Data Kenema & Kailahun ADB Freetown - Lungi and Study only 1.77 Bandajuma - MRU IDA (TSP & IDP) Studies (PHRD) Makeni - Matotoka and Bo - Study only 0.42 Kenema Road Sector Management Study only 0.30 Action Plan Works Bo-Yele - Petifb Junction Spot improvements and 0.74 rehabilitation Blama - Gendema Ferry Spot improvements and 0.87 rehabilitation Bo - Sembehun - Mano - Spot improvements and 0.66 Taiama rehabilitation Sembehun - Sumbuya - Spot improvements and 0.81 Mattru - Bamba Junction rehabilitation Subtotal IDA 3.80 Total Core Network** I 32,274 138.94
35 a, Kono & Kailahun
* The Rural Roads project (€9.5m) and Freetown-Conakry Highway I1Phase (approx. €20m) are in the pipeline under the 9th EDF so as to contribute to the feeder and core road network, respectively. ** It should be noted that a considerable percentage ofthe Core Road Network Rehabilitation shown has been and continues to consist of spot-regravelling. This is only a short term initial intervention which tends to exaggerate the extent of the works completed, since these same roads will have to be revisited within 2 or so years for full rehabilitation.
20. The European Union (EU) is by far the largest contributor to the road sector, with ongoing projects and commitments to improve 1544 km ofthe core network and 650 km rural/feeder roads. Other donors on the core network include the Islamic Development BankKuwait Fund, DFID, AfDB and IDA, with IDA’Srecently completed Transport Sector Project rehabilitating some 313 km of primary gravel roads and 484 km of feeder roads, plus 10 km ofurban roads. HIPC funds are also being used to improve targeted gravel road sections. 21. The IDA TSP Feeder Road Program was highly successful, providing all weather rural access for local communities to the main road network and beyond, through labor-based methods which provided rural employment notably to ex-combatants and youths. This program will be upscaled with funds from EU, IDP, NaCSA and HIPC funds, as shown in the above table. 22. However, despite notable commitments to the core road network and the secondary roads, the current emphasis on feeder road investment is resulting in under-funding of the core primary road network, which still has to be rehabilitated up to a fully functioning maintainable standard. Key sections of the paved network are in danger of imminent deterioration, while certain deteriorated non-paved axis continue to severely restrict all weather access to certain regions and the rural community in general.
36 Freetown Port 23. Description. The Sierra Leone Ports Authority (SLPA) is a semi-autonomous enterprise, which was established by the Ports Act of 1964, as later amended. The Port of Freetown is the principal commercial port in the country and is located in Cline Town, in the east part ofthe City ofFreetown. The port, with the Queen Elizabeth I1Quay, is the most important entry gate for trade and commerce of Sierra Leone. It has arguably one of the finest natural harbors on the West African Coast, with an immense and well-protected anchorage on the River Rokel estuary, more than 1 km of continuous berths and sizeable and fenced land allocated for the port. The SLPA owns and operates a slipway and manages ferry operation between Freetown and Tagrin. 24. During the civil unrest period, the Freetown Port suffered destruction ofrecords, equipment stock and damaged infrastructure. Based on the World Bank-financed Freetown Port Master Plan in 1996, the TSP contributed to restoring operations at the Port of Freetown after years ofneglect and damage by civil unrest. This included physical investments in port infrastructure and equipment, and institutional support and assistance in moving toward a landlord port model. SLPA operates as a service port, itself directly managing and implementing all operational aspects of the port business. Although traffic has improved in recent years, the SLPA has been plagued by severe overstaffing, low productivity, inefficient operations, insufficient maintenance, uncompetitive costs and a management unwilling or unable to make the hard decisions needed to address these issues. 25. In the face ofthese challenges, the port sector is in dire need of rationalization. The Government intends to achieve such rationalization through two means: (i)comprehensive institutional, regulatory and operational restructuring with significant private sector participation and cargo handling equipment investment; and (ii)targeted and appropriate public sector investments for basic infrastructure, dredging, navigational, safety and environmental equipment. 26. Under the NCP oversight and with TSP support, the port’s slipway is in the process of being sold off and a management contract for the ferry services will be tendered. Spurred by the President’s June 2004 address (which expressed disappointment with port performance and called for accelerated reform) the Government has embarked on a concerted program to transform the port to full landlord status, with most or all cargo operations carried out by the private sector. 27. The NCP has decided that the port reform will be done by the implementation of an Action Plan for the restructuring of SLPA as a landlord, with the privatization of the core activities through the concessioning of the container terminal and licensing to service providers for handling of non-container (break-bulk and bulk) cargo. The Action Plan, formulated with funding through TSP, includes three components: (i)transaction activities leading to privatization; (ii)activities related to the restructuring of the SLPA, including significant reduction in staff; and (iii)definition of the economic and technical regulatory functions associated with the revised SLPA structure. Initial stages of the Action Plan are funded by a Project Preparation Facility (PPF). Additionally, NCP has entered into an agreement with the Government of Ghana for technical assistance to SLPA from Ghana Ports and Harbors Authority (GPHA). GPHA is seconding for a twelve month period a General Manager to SLPA and providing departmental technical experts from time to time to assist in preparing and implementing operational guidelines for SLPA departments. This support is complementary to the Action Plan and is aimed at achieving a clear break with past practices and introducing fresh management perspectives founded on the Ghana landlord port model. 28. Implementation ofthe Action Plan commenced mid-2005 under the auspices ofthe NCP through a dedicated Project Management Committee (PMC) with its own Technical Secretariat. The initial stages ofthe Action Plan are funded by a Project Preparation Facility (PPF) and will be captured by the project upon its effectiveness.
37 29. Under the TSP, IDA funded the following port infrastructure improvements: (i)rehabilitation of a part ofthe container stacking area; (ii)paving ofaccess roads within the port area; (iii)repair to damaged berth 5; and (iv) rehabilitation ofthe slipway and winch and rebuilding ofwinch house. The Government, with support of PPF, commissioned a technical, economic and environmental feasibility study for equipment needs and physical expansion ofthe Port of Freetown. The study identified that the following areas of intervention constitute priority public sector investment needed to address the medium to long term capacity of the port to meet internationally recognized operational, environmental, safety and security standards: (a) paving of about 21,000m' of earth surfaced container stacking area, which is currently in use and is causing relentless damage to container handling equipment, as well as paving of 2,000m2 for berth access; (b) rehabilitation of the quay wall coping structure; (c) installing of fenders, ladders and dredging of silted berths; (d) navigational aids; and (e) environmental equipment to achieve compliance with MARPOL 73/78. The Government also intends achieving full compliance to International Ship and Port Facility Security Code (ISPS). 30. In addition, investment is urgently needed for container handling equipment, but the Government recognizes that this will be the responsibility ofthe private firms that will operate the container terminal. Annex 1, Table 4: Growth f Cargo ' raffic at th Port of Fr etown 199 1994 2000 2001 2002 Growth p.a. 2000-2003 IMPORTS Foodstuffs 273 352 410 3 64 10% Consumer goods 15 23 25 51 50% Capital goods 17 31 26 35 27% Industrialraw goods 113 151 225 252 31% Miscellaneous goods 32 45 49 73 32%
TOTAL IMPORTS 450 602 735 775 20%
EXPORTS Empty containers 13 18 26 29 29 17% Cocoa 3 3 5 6 8 38% Coffee 4 2 2 2 3 12% Other 13 1 10 16 48 264%
TOTAL EXPORTS 33 24 43 53 88 54%
IMPORTS + EXPORTS 433 474 645 788 863 22% . ..of which containers TEU 22,3 17 30,331 34,681 35,555 17%
EXCLUDING UNAMSIL, ES
IMPORTS + EXPORTS 413 5 63 726 809 25% . , .of which containers TEU - 15,073 I 15,206-- 20,497 I 27,463 29,763 - -25% Source: Port of Freetown, Equ
3 1, Issues. While the port infrastructure and performance has been revived and initial steps have been made toward achieving a more commercially-run entity, the key issues for the future revolve around how this process can continue, given projected rates of growth, revenues and resource constraints. The Action Plan for port reform hinges on Government's efforts to rationalize the role of the public sector to one of landlord for the infrastructure and rely on private sector know how and profit orientation to improve productivity and service in the port through concessioning ofthe container terminal and licensing of bulk handling operations. In this context, several important issues arise:
38 32. Government Follow-Through and Commitment. Past experience with port privatization in Sierra Leone reveals a reluctance of the Government to fully commit to the sale of assets or to the contracting out of services to the private sector, with a tendency to opt for halfway or “hybrid” transaction solutions which cannot deliver effective service provision based on sound contractual relations and market principles. There is therefore a risk that the necessary reforms in the Action Plan will be diluted through incomplete restructuring or weak transaction arrangements and a true landlord port status will not be attained. This risk will be addressed by: (i)implementing the Action Plan under the auspices of the NCP through a dedicated Project Management Committee (PMC) with its own Technical Secretariat; (ii) continuing technical support to the PMC and Technical Secretariat throughout the Action Plan implementation period, with an emphasis on the quality oftransaction documents and processes; and (iii) funding for SLPA infrastructure improvement conditional on successful container terminal concessioning. Also, while entrenched labor interests may also resist actions involving staff reductions, these will be mitigated by support to the development of a social plan for redundant staff. 33. Private Sector Response. Because ofthe low volumes involved, it is not clear that concessioning ofthe container terminal will attract the interest of the larger professional international terminal operators. To encourage robust private sector response, this risk will be addressed by project funded investments (some of which will be linked to concessioning of the container terminal) which strengthen the overall attractiveness of the port, providing for a further extension of the paved container stacking area, rehabilitation ofthe quay wall, new fenders, dredging, navigational aids and environmental equipment. 34. Private Sector Monopoly and Regulatory Capacity. The volume ofcontainer traffic in the Port of Freetown only allows for one container terminal concession, thereby mostly excluding the possibility of creating competition for container handling within the port. Nonetheless, as has been the case elsewhere, benefits of private sector run container terminal are still expected to materialize, but the absence of moderating effect of direct competition will need to be addressed with adequate Government competency in economic regulation of the sector. Competition will also be encouraged by allowing RoRo vessels to have the choice of a stevedore other than the terminal operator and to berth outside the container terminal. 35. Continued Bank support is justified to assist SLPA in following through on the above management reforms, aimed at improving efficiency and competitiveness, which in turn underpin much of the country’s trade activities, the economy and growth; with an efficient port also vital for private sector development.
Freetown (Lungi) InternationalAirport 36. Description. Freetown International Airport is Sierra Leone’s only gateway airport. It is situated across the Sierra Leone River in the flat plains of the Bullom peninsular. It is accessed by ferryboats, helicopter or air shuttle services and a tortuous land journey through the town of Port Loko. 37. In 1995, the Sierra Leone Airports Authority (SLAA) undertook a five-year Needs Assessment Study through the UNDP assistance program. This study articulated the urgent need to undertake extensive repairs and modernization of the international airport’s visual and navigational aids, security equipment, pavements, passenger terminal and cargo buildings, perimeter fencing, including the provision of a fire and rescue vehicle, a sea rescue boat and training ofpersonnel for sustainability. The total cost ofthis investment program was estimated at US$ 14.0 million. The TSP assumed a part ofthis plan with a scaled down emergency five-year program, while SLAA funded some other parts of the plan as funds allowed. 38. Following the period of civil unrest, with the TSP contributions, cracks in the airport runway were sealed; the arrival and departure terminals have been rehabilitated along with the runway lighting and essential standby electrical equipment was installed. Closed circuit TV (CCTV) security and baggage
39 scanning systems have been installed along with full repair of the perimeter fencing. As a result of which international flights have resumed. Issues. 39. Urgent Infrastructure Requirements. The previous deferred interventions now make it imperative to strengthen the runway and to widen the turning loops and taxiway entrances for safe use by modem aircraft, while other electrical equipment for full standby capability and the securing of a reliable water supply are essential for fire fighting and other safety and sanitary considerations. The obsolescence of the automatic landing and groundair communications systems also has to be addressed through provision ofupdated systems. The deferred strengthening ofthe runway and other works identified in the 1995 investment plan also now need to be addressed, with the PHRD feasibility and design study identifying risks of flying object debris (FOD) which effectively can only be remedied by the strengthening. In addition, the previous failure to fully fund timely interventions has resulted in further deterioration ofthe runway and over-use ofthe standby generators. 40. Management Improvements. While the physical investments accomplished so far have gone towards rehabilitating Lungi Airport’s basic infrastructure and reviving basic operations, little has been invested in the management. Fortunately, the Sierra Leone Airports Authority (SLAA) has an extremely competent management structure, but desires to further improve its operations through quality management initiatives supported by the IDP. 41. Management of Internal Airports. Apart from Hastings airport (rehabilitated by UNAMSIL) all other internal airports and airstrips were substantially destroyed during the troubles. These airstrips are currently the responsibility of the Civil Aviation Authority. It was proposed that SLAA take over the responsibility but SLAA objected, since this responsibility without substantial Government subsidies endangers SLAA’s ability to operate as a financially self-sustaining entity. Government has since indicated that any reactivation, restoration, maintenance and operation of the domestic airstrip would be financed through Public Private Partnership (PPP) arrangements, with Government budgeting the Public contributions. 42. Civil Aviation Institutional Framework. A study of the Civil Aviation Sector indicates that there is a need to rationalize the nation’s current institutional framework to conform to international standards and the Department ofCivil Aviation (DCA) needs strengthening. 43. In response to the above, the Government’s strategy is to support: (i)improvements in SLAA management, planning and personnel development; (ii)SLAA’s completion ofthe rehabilitation ofLungi International Airport; (iii)rehabilitate Hastings and provincial airstrips, as funds allow; and (iv) address the need to establish an internationally acceptable civil aviation authority.
40 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies REPUBLIC OF SIERRA LEONE: Infrastructure Development Project Sector Issue Project Latest Supervision (PSR) Ratings rojects only) Bank Financed Development Piogress (IP) Objective (DO)
Poor accesslcongestion Freetown (Urban) Infrastructure Completed Moderately Rehabilitation Project (Cr. 25 11) Satisfactory
Trunk Road Rehabilitation & Road Rehabilitation & Maintenance Completed Moderately Maintenance Project (Cr. 2451) Satisfactory
Post-Conflict Priority Infrastructure Transport Sector Project (Cr. 2895) Completed Satisfactory Rehabilitation (International Airport, Port, Primary, Urban, Rural and Feeder Roads) and management reform
Poverty ReductioniLTrgent Access National Social Action Project (NSAP On-going Satisfactory through NaCSA)
DecentralizatiodLocal Government Institutional Reform and Capacity On-going Satisfactory Capacity Building Building (IRCB) Other development agencies Eurouean Union EDF: Core network and feeder road 1544 km core network; 650 h rehabilitation feederlrural roads
African Development Bank Freetown-Lungi Feasibility Study Core network rehabilitation
Kuwait Fund Western Region core roads 45 km Kenema-Koindu Upgrade to Paved - 167 km Feasibility Study Feasibility and Design Study award stage DFID Culverts, Bridges & Ferries Improvements on ten road sections
ECOWAS Transport sector infrastructure Equipment support to airport support
Feeder road improvements 187 km of feeder roads
Islamic Develoument Bank Feeder Road Improvements 650 km of feeder roads data requested data requested
NaCSA/NSAP Feeder road improvements 80 km of feeder roads On-going Satisfactory
NCDDR Feeder road improvements 12 km Eastern & Southern Regions
UNAMSIL. GTZ, NGOs Emergency & spot improvements Various short term improvements
41 Annex 3: Results Framework and Monitoring REPUBLIC OF SIERRA LEONE: Infrastructure Development Project
Results Framework
PDO Outcome Indicators Use of Outcome Information
Outcome1 : Sustainable all- - Reduction in travel time on project Monitor and review progress (including quality) weather access over selected roads; towards achievement of outcome indicators, sections ofthe primary road - Increase in usage of the project road; identify implementation constraints and remedy network and connecting - Number of person-days of employment as necessary. rural and feeder roads. generated by Project Road Construction and Maintenance; -Prioritized programmed maintenance is established.
Outcomef: Improved -Improved performance on handling Port Monitor and review progress (including quality) efficiency, safety and Container; towards achievement of outcome indicators, sustainability of the -Increase in port break-bulk ships daily identify implementation constraints and remedy International Port handling performance; as necessary. operations. -Mandatory environmental and safety measures as agreed under Marpol are addressed; -Increase in financial surplus for SLPA after depreciation and financial charges and before tax.
Outcome3: Improved -Airport complies with ICAO mandatory Monitor and review progress (including quality) efficiency, safety and standards towards achievement of outcome indicators, sustainability ofthe identify implementation constraints and remedy International Airport as necessary. operations.
42 Intermediate Results/Output Indicators for Each Use of ResultdOutput Monitoring ResultdOutput Component One per Component Component 1: Roads
(i)Construction -106km ofprimary road rehabilitation Monitor and review progress (including satisfactorily contracted out by mid-term; pality) towards achievement ofoutcome commenced on 106km -4OOkm ofruravfeeder road ndicators, identify implementation primary roads and rehabilitation contracted out by mid- :onstraints and remedy as necessary. 400km rural/feeder term; roads. -mobilization ofcontractors 100% complete by mid-term; -quality ofworks satisfactory (from technical audit); -progress satisfactory against program, with acceptable projected completion date.
(ii)Independent Road -legalities completed by mid-term; Maintenance Fund -members ofthe IRMF recruited by established, with the mid-term; associated restructuring - 1St years prioritized maintenance of SLFU and the program agreed by mid-term; privatization ofMSU. -MSU operating on a totally commercial basis by mid-term; - Fuel Levy increased and maintained at not less than US$O.lO per liter to support prioritized programmed maintenance by mid-term. Component 2: Freetown International Port (i)SLPA restructured as - Agreed reorganization Action Plan Monitor and review progress (including a Landlord Port, with implemented by mid-term; quality) towards achievement of outcome enhanced Navigation and - Legalities completed for indicators, identify implementation Environmental facilities. restructuring SLPA as a Landlord constraints and remedy as necessary. Port by mid-term; - Cargo handling services concessioned and licensed by mid- term; - Bidding underway for civil works associated with concessioning, by mid-term; and -All selected Navigation and Environmental equipment procured and installed by mid-term.
43 Intermediate Results/Output Indicators for Each Use of ResultdOutput Monitoring Results/Output Component One per Component Component 3: Freetown International Airport
Upgrading satisfactorily -All civil works, Goods and Services Monitor and review progress (including commenced. contracts awarded by mid-term; luality) towards achievement ofoutcome -mobilization of contractors 100% ndicators, identify implementation complete by mid-term; :onstraints and remedy as necessary. -quality ofworks satisfactory (from technical audit); -progress satisfactory against program, with acceptable projected completion date Component 4: Project Coordination
Implementation ofthe - Special Account and Financial Monitor and review progress (including IDP is professionally Management systems established and quality) towards achievement ofoutcome coordinated and in operated; indicators, identify implementation conformity with legal, - TA procured and operated, with Gonstraints and remedy as necessary. fiduciary and safeguard emphasis on procurement support, requirements, as stated in quality assurance and reporting; the Grant Agreement. - Component and overall project progress reports are completed by implementing agencies and CMU in conformance with agreed formats and submitted on time. - All fiduciary reporting requirements are met in accordance with agreed timetables. - Financial and Technical Audits are contracted and completed according to agreed timetables. - Monitoring and evaluation indicators are reported in accordance with agreed timetable. - Environment and Social Management Plans are monitored and reported in accordance with agreed timetable. - Airport Master Plan Study, Airport Management Study and other studies to be undertaken are identified by mid-term.
44
_D
ggg m m m fi N
CAM mo fi 30 N Monitoring and Evaluation methodology and arrangements. Each implementing agency will monitor progress against agreed-upon performance monitoring indicators, as shown in the Results Framework. The CMU will be responsible for ensuring that such reports are submitted in a timely manner and in accordance with the agreed formats. The CMU Technical Assistance Consultant will also support each implementation agency, primarily in procurement, quality assurance and reporting - the latter including the drafting of an Executive Summary of the combined status reports with CMU. In addition, Technical (and Financial) Audits at 6 month intervals (or as necessary) will be carried out to provide further quality assurance. Reporting. Full details of progress (including outcome and results indicator data, analysis and recommendations) will be reported in regular quarterly reports prepared by the implementation consultants - as endorsed by the implementing agencies and the CMU, plus audit reports. For the Institutional Strengthening subcomponents, the indicators will track the implementation of key sectoral reforms and improved sector management. For the Civil Works subcomponents, the indicators will track annual achievement ofannual physical targets. (i) Quarterly progress reports (including financial and procurement status reports) will be established by the CMU TA on the basis of the project implementation plan, which will be agreed during Grant negotiations; (ii) Bank’s supervision missions will generally take place twice a year, with an Early Implementation Assessment 12 months after effectiveness; and (iii) An Implementation Completion Report (ICR) will be prepared at the end of the Project and presented within six months of the Grant closing date. Baseline and annual monitoring studies will assess the impacts of the entire Program. The monitoring activities will verify if program and project objectives are being achieved, as well as financial management and procurement aspects.
47 Annex 4: Detailed Project Description REPUBLIC OF SIERRA LEONE: Infrastructure Development Project
ComDonent A: Road Network (US$23.58 m, Bank Financinp L1S$22.53m) A.l Core Network Connectivity and Preservation The project will finance the rehabilitation of Bo-Kenema and Makeni-Matotoka roads (106 km). These are two essential paved east-west links in the core network that, if not preserved, are in danger of rapid deterioration. Makeni - Matotoka Road (37 km). The Makeni-Matotoka road is part of the northern lifeline link from Freetown through major towns of Port Loko and Makeni and Matotoka to Sefadu, located at the heart of the eastern mining area. Although current available funding and other donor commitments do not permit the completion of the remaining northern EasWest link, Matotoka-Sefadu (1 19 km), it is imperative to safeguard the existing paved road Makeni-Matotoka, while seeking additional funding for the section to Sefadu. Makeni serves as Bombali District headquarters and a major market and economic center, with road links to the northern towns of Kamakwie (being rehabilitated by EU) and Kabala, the latter in the extremely isolated northeastern Koinadugu District. Agriculture is the main economic activity in Bombali and Tonkolili Districts through which the road passes, with main crops including rice, cassava, citrus and palm oil and major potentials to expand upland rice and swamp rice cultivation in the bolilands, fishing and cash crops such as tobacco and sugar. Continued access on this road therefore plays an essential role in agricultural production and marketing strategies, and it is an essential component ofreducing isolation for the northern Bombali, Tonkilili Districts, as well as the eastern Kono District, where the EU is also investing in the Koidu-Kurbonia road. Reliable access along this road is also a prerequisite to expanded economic activities in all these areas, such as sugar processing, which stand to benefit from the advent of electricity from the Bumbuna Dam, 50 km north ofMagburaka. Bo - Kenema (69 km). The Bo-Kenema road forms part of the southern lifeline from Freetown to the major towns of Bo, Kenema and beyond to Kailahun and Koindu, at the easternmost part of the country. Bo is Sierra Leone’s second largest town, with a population of about 70,000 and a major center for marketing of rice, cassava, palm oil and vegetables from Bo District and the southern Pujehun District. Kenema is also a major commercial center serving Kenema and Kailahun Districts, where cocoa and coffee have been traditionally been grown, as well as rice and other staples. Continued access on this road is therefore essential for the expansion of food and cash crop production and marketing in all these high- potential areas, as well as mining activities, especially in light of the EU rehabilitation of the Kailahun- Koindu and other roads in Kailahun District and other access-poor and high poverty districts as funds allow. A.2 Feeder Road Infrastructure Improvements The project will finance the rehabilitation, through labor-based techniques, of approximately 400 km of the feeder road infrastructure in the Districts ofKoinadugu, Kono and Kailahun and other access-poor and food-insecure districts, to be agreed as funds allow. In addition, it will also support the refocusing of the SLRA Feeder Roads Department to be responsible for management ofthe feeder and local road networks, as well as assisting the development of local contractors through (i)training in labor-based road construction techniques, business management and contract bidding; and (ii)mechanisms to obtain construction equipment, so as to ensure private sector capacity to assume the volume of project works, combined with parallel donor investments. The subcomponent will be implemented based on the highly successful Feeder Roads Program in SLRA, begun under the TSP (484 kms rehabilitated in Bo, Moyamba and Kenema Districts), which involves labor-based methods to achieve minimum standard gravel roads of 6 meter width. However, because of the need to achieve sustainable maintenance for feeder roads, it will aim also to develop technical designs
48 that involve low maintenance costs and minimal capacity for maintenance at the district and local council level. The subcomponent will complement parallel donor projects, namely: EU, which will finance 647 km of feeder roads and some Class B roads in Kambia, Port Loko, Pujehun and Kenema Districts;
0 Islamic Development BanWNaCSA, which will finance 500 km in Tonkali, Bombali, Kono and Kailahun Districts; and
0 ADB (planned), which intends feeder road development within the context of an Agricultural Project in Tonkali, Moyamba and Kono Districts. Environmental and Social Management Policy Framework. Since the location of the feeder roads to be improved is not yet known, a procedural framework has been developed for implementing the environmental and social management process in the selection, planning and implementation of these subprojects. Under this procedural fkamework, each feeder road will undergo a systematic Environmental and Social Management Framework, described in detail in Annex 10. Identification, Screening and Selection. District-level priorities for feeder roads were identified through a series ofparticipatory workshops held during the development of the NTSIP. From this initial list, the feeder roads to be improved under this project will be proposed locally, based on criteria and guidance set by the project. The main criteria will be to ensure connectivitylall-weather access to the main network and key agricultural or other economic zones within the district. The selection process will also be coordinated with two other Bank operations:
0 Institutional Reform and Capacity Building Project (IRCB), who is providing capacity- building support and local government development grants to local councils; and 0 National Social Action Project (NSAP), which is implemented through NaCSA; NSAP- financed improvements will focus on solving urgent access constraints, with low-cost spot improvements, either on feeder roads or community access roads, which connect to the larger network. IDP on the other hand, will finance rehabilitation of feeder roads to the minimum, low maintenance technical standard, so as to ensure connectivity from the main network to the community-level access links. Design and Implementation. Following selection, implementation will be based on well-established processes put in place during TSP. These include:
0 Road and associated infrastructure condition survey 0 Line diagram, Bill ofQuantities (BoQ), Contract Documents 0 Local competitive bidding, including short-listing ofcontractors 0 Evaluation ofbids 0 Evaluation report sent to Bank for no-objection
0 Contract signature 0 Works supervision The roads will generally be grouped into three lots per district. For each lot, the condition surveys, line diagrams, BoQs and drawing up of contract documents will be carried out by local consultants. The bids will be evaluated by a local committee, which will include the SLRA district engineer, and sent to SLRA for verification and approval. It will then be sent to the Bank for no-objection. The works supervision and works contracts will be signed between SLRA and the contractor(s). Contractor Capacity Development. Since it started in 1994 under the Agricultural Sector Support Project (ASSP), the Feeder Roads Program has trained 26 local contractors, some ofwhich are redundant Ministry of Works workers. The program also outfitted the first 8 contractors with basic equipment, including tractors, trailers, towed water bowser, hand rollers and light utility vans. Much of this
49 equipment disappeared or was destroyed during the hostilities, and the Feeder Road Department has been providing such equipment on demand to contractors fi-om its own equipment pool. Given the increased volume of works envisioned under this and other donor feeder roads projects, the demand for equipment will grow, and will rapidly exhaust existing available equipment supplies. Moreover, the supply of equipment to contractors by SLRA runs counter to the policy of SLRA becoming a purely planning and management agency. The challenge is therefore how to increase the domestic private sector capacity. In this regard, a number of solutions were considered, including: Financing additional equipment procurement by MSU who would hire to local contractors. As the major civil works equipment supplier, MSU would seem a likely candidate organization. However, its commercialization has been slow and it functions mainly as a supplier to larger contracts. Providing equipment loan guarantees to contractors. This solution is risky, since the local banking system is still weak and it is unlikely that these small contractors can yet take on such debt for capital investment. Financing additional equipment procurement through an NGO who would hire to local contractors. This solution would ensure the availability ofequipment at the local level, while promoting non-government hiring of equipment services, a key element in the overall infrastructure strategy. It is envisaged that at the end of the project period, the NGO would auction the equipment, which could be purchased by the local contractors, or groups of contractors. Encourage more labor-based construction and maintenance. This would entail revisiting the materials used and the design to suit not only labor based construction but also labor based maintenance. The benefits would include: substantial sustainable employment generation; minimal maintenance funding burden on local government; no need of spare parts, workshops, mechanics and all the other mechanical logistical support which has failed in the past; and most important, the maintenance would all be in the hands of local government - so they would not be waiting on anybody for equipment etc. The project will therefore support the fourth optiodsolution. A.3 Institutional Support The project will support reform and restructuring of the road sector, aimed at encouraging private sector participation and re-definition of government’s role away from force account works. This would include technical assistance and other support for the establishment of an independent Road Fund entity and support to the reorganization of SLRA and SLRTA in their new roles (Although no co-financing is currently planned, parallel financing by the EU for SLRA technical assistance will also need be coordinated).
50 Annex 4, Table 1: Road Component Cost Summary (US% inc. taxes and contingencii Total - IDA Sierra Leone -
A.l Core Network A.l.l Construction Makeni-Matotoka 4,063,194 3,860,034 203,160 Bo-Kenema 8,642,082 8,209,978 432,104 Subtotal Construction 12,705,276 12,070,012 635,264 A.1.2 Supervision 889,369 889,369 0 A.l Subtotal 13,594,645 12,959,382 635,264 A.2 Feeder Road Network A.2.1 Construction Koinadugu District 1,040,000 988,000 52,000 Kono District 1,040,000 988,000 52,000 Kailahu District 1,040,000 988,000 52,000 Other Selected Districts 2,9 16,667 2,770,833 145,833 Subtotal Construction 6,036,667 5,734,833 301,833 A.2.2 Supervision 422,567 422,567 0 A.2 Subtotal 6,459,233 6,157,400 301,833 A.3 Instit. Strengthen. & Train. Mechanical Services Unit 500,000 500,000 0 Road Maintenance Fund 300,000 300,000 0 SLR4 200,000 200,000 0 A.3 Subtotal 1,000,000 1,000,000 0 - _.__ Base Cost 21,053,879 20,116,782 937,097 Physical Contingencies 1,052,694 1,005,839 46,855 Price Contingencies 1,473,772 1,408,175 65,597 P Total Cost 23,580,344 22,530,795 1,049,549
Component B: Freetown Port cUS$10.75m: Bank Financing US%6.91ml B.1 Port Infrastructure and Equipment The project will finance infrastructure and equipment improvements, within the context of the Port’s conversion to a landlord port status. This will include: (i)expansion of the container stacking area, including lighting and rehabilitation of the concrete coping at Berth 6; (ii)dredging, new ladders and fenders along all the berths; (iii)navigational aids; and (iv) specialized equipment to meet internationally recognized environmental and safety standards. Container stacking area extension. In order to accommodate expected increase in container traffic until 2020, it has been concluded that it is necessary to expand the existing paved stacking area. This will involve paving of stacking area # 6 and a 40 m area south of the Central Road Way parallel to Berths 5 and 6, as well as installing 30 m high flood light towers to provide proper area lighting, which will permit work at night. The recommended pavement ofapproximately 21,000m2, consists ofa top layer of 80 mm concrete blocks on a 40 mm sand bedding on top of a base of 300 mm lean concrete and 250 mm compacted rock ballast. Filter will be installed behind the coping along Bert 6 to avoid sinkholes. This design will provide a uniform pavement in the whole terminal area and is suitable for excessive axle loads from container trucks, as well as loads from full containers stacked up to 3 layers. Additionally, the road between the coping and the drain along berth 6 will be paved (approximately 2000 m’). The concrete coping at Berth 6 will be strengthened with new gallery deck structure to increase its loading capacity such that it may be used as a container berth. Dredging, ladders and fenders. Reduced water depths have been observed, particularly during the rainy season, due to siltation at berths 3-4 and 5-6. Maintenance dredging will be carried out in front of the
51 main quay and reaching 15-20 m from the face of the quay, along all the berths, so as to achieve uniform depths. Dredged material will be dumped at water depths greater than 20 meters. Nearly all the ladders and fenders originally installed are missing and tractor tires have been installed to replace some of the fenders, presenting a hazard to berthing vessels. Therefore new ladders and fenders will be installed along all the berths. Security and Safety. During project implementation, Government’s progress towards achieving and maintaining International Ship and Port Facility Security Code (ISPS) compliance will be monitored. The project, upon IDA agreement, may support targeted and limited infrastructure improvements, equipment and other activities to reach this objective, as well as other minor improvements aimed at enhancing safety in the port. Navigational Aids. Navigation through the river entrance to the natural harbor and inside the port area to Queen Elizabeth I1 quay can be hazardous, particularly during night, due to occasional very strong tidal streams and the presence of shoals and offshore dangers. Years ofneglect and civil war have left the port in urgent need ofnavigational aids to improve safety ofnavigation, in particular for larger vessels. While authorities are starting to address this urgent matter, remaining needs at appraisal have been identified and the project will, subject to updating of the list at time ofprocurement, finance the provision of: (i)a new lighted port side Fairway Buoy at the seaward entrance to Freetown Port north of Carpenter Rock; (ii)a North Carolina Buoy at Carpenter Rock; (iii)a new white rotating light and fixed red sector light in Cape Light House, powered by solar panels; (iv) replacement of the light beacon at Government Wharf, F.G.2M. The beacon will be installed on a new structure inside a fenced area close to the present position; (v) a new light beacon at the pilot boarding ground at Falcon Bridge Point, Isophase 2s 3M; (vi) replacement of light beacons at Q.E.11 quay, Isophase R. 3s2M at western end of Berth no. 6 and F1 (3) G2M at Fourah Point; (vii) replacement ofleading lights at Cline Point, F.R. and F. Bearing 127 degrees; (viii) replacement of light beacons at Kissy and Tagrin Ferry Terminals, F1(2)G.7s2M; and (ix) two (2) port side channel buoys along sandbanks at Tagrin Point Ferry Terminal. Environmental Equipment. In order to adhere to the commitments of the ratified Annexes of MARPOL 73/79, the project will fund the provision of equipment to achieve this goal. This equipment is envisaged as including: (i)approximately 600 meters of oil booms and auxiliary equipment to respond to smaller oil spills; (ii)bilge tank and separators; and (iii)pool of closed waste containers and or refuse truck for receipt ofsolid waste.
B.2 Institutional Support The project would also finance support for transforming the Port of Freetown to a landlord port, through targeted technical assistance to NCP and SLPA in organizational restructuring and outsourcing to the private sector ofits core and non-core functions. Under an SLPA Institutional Study funded under the TSP, an Action Plan, describing the necessary preparatory work for the transformation of the SLPA and the privatization of cargo handling activities, was formulated in close collaboration with SLPA and NCP. The NCP will be the leading agency in reforming and restructuring institutional aspects of the port sector. The NCP has set up a dedicated Project Management Committee (PMC) with its own Technical Secretariat to effect the needed changes. The project will fund on an as-needed-basis technical assistance to the PMC, to complement overall DfID planned technical support to NCP. A comprehensive consultancy will be procured for provision of privatization services, both for preparatory work as well as implementation support. The preparatory work will include:
52 - Component and activities A Related to the transactions 1. Labor Scheme The restructuring of SLPA and the privatization ofthe core ictivities will require the definition ofnew labor irrangements.
2. Legal power to grant conessionsllicences The requirement follows on the NCP Act No. 67 2002 which affects the SLPA's powers under the Ports Act.
3. Transaction design for: 411 studies, documentation and other preparatory work up (a) concession, and :o the point ofcalls for bids for a concession or announcing (b) licenses ?rocedures for the granting of licenses.
4. Equipment pool(s) Analysis ofoptions for the SLPA cargo handling equipment :and staff) after privatization.
5. Engineering studies rhese studies are directed towards the enhancement ofthe value ofthe container concession. 7 B Related to restructuring of the SLPA 1. Legal analysis ofPorts Act etc Required to clarify the new role of SLPA as "landlord" and to resolve some overlaps with other legislation. The new role as "landlord" requires an overhaul ofthe 2. Organizational study SLPA as "landlord" SLPA organization, with emphasis on new revenues. PO* The cost ofthe restructuring ofSLPA will depend on what 3. Actuarial study to determine the cost of is proposed (from B2) and on the length ofservice and change and severance. other circumstances ofthose affected.
A program ofretraining and other income restoration 4. Social mitigation measures will be prepared.
Apart from the QEII quays, the SLPA's assets include at 5. Estate development including Gov. Wharf least 5 other parcels ofreal estate, ofwhich the potentially most valuable is Government Wharf.
Financial model ofchanges and tariff The model will permit the analysis ofreduced revenue from 6. privatization and reduced costs from severance, so that the financial stability ofSLPA can be maintained.
The non-core transactions have to be completed. Non-core activities -7. C Definition of Regulatory function 1. Regulatory functions Definition ofthe nature and modality ofthe required economic and technical regulation.
2. Environmental audit Required to establish the baseline case at commencement 01 concessioning and to ensure that the concessioning includes appropriate environmental targets and limits (acceptable to the World Bank) to be met throughout the transformation - process.
53 NCP has also entered into an agreement with the Government ofGhana for the interim port management and associated technical assistance to SLPA from Ghana Ports and Harbors Authority (GPHA). GPHA is seconding for a twelve month period a General Manager to SLPA and providing departmental technical experts from time to time to assist in preparing and implementing operational guidelines for SLPA's departments. This support is complementary to the Action Plan and technical assistance under the project, the GPHA TA being aimed at achieving a clear break with past practices and introducing fresh management perspectives founded on the Ghana landlord port model. mnex 4, Table 2: P- (US$ inc. taxc -and contingf Icies) Item - Total --IDA Sierra Leone B. Port of Freetown B.1 Container Area, Dredging, Fenders, Ladders Paving Works, Dredging, Fenders, Ladders 4,878,500 3,902,800 975,700 Supervision 34 1,495 341,495 0 Subtotal B.1 5,219,995 4,244,295 975,700 B.2 Environmental & Safety Equip. Navigational Aids 308,000 246,400 61,600 Environmental Reception Facilities 473,000 378,400 94,600 Subtotal B.2 781,000 624,800 156,200 B.3 Institut. Strengthening & Training Environmental Monitoring Program 100,000 100,000 Technical Assistance 500,000 500,000 Training 200,000 200,000 Subtotal B.3 8 00,O 00 800,000 B.4 Severance Payment Severance Payment 2,300,000 0 2,300,000 Subtotal B.4 2,300,000 0 2,300,000 B.5 Severance Package Support Retrenchment Training 500,000 500,000 0 Subtotal B.5 500,000 500,000 n" P Total Base Cost Physical Contingencies
Component C: Freetown International Airport (US$9.75m; Bank Financing US$8.86m) C.1 Runway Overlay, Turning Loops, and Essential Services The project would finance rehabilitation of the runway; upgrading of the turning loops and taxiway entrances to safely accommodate modem aircraft; replacement/provision of automatic landing and air- ground communication systems; and installatiodupgrading of the water and electricity supplies for security, sanitation fire fighting and back-up supplies. The physical airport components were initially selected in conjunction with the SL Airport Authority, as the next level of investment now needed after the Transport Sector Project inputs re-established basic services at the airport. The proposals were then the subject of full Feasibility and Design studies to ICAO international standards. The design recommendations envisage: a 50mm asphalt concrete overlay to the entire runway; widening of the taxi-way accesses and turning loops to accommodate modem aircraft configurations; raising and widening ofthe runway shoulders to ICAO standards, together with relocation of the runway lighting; an independent bore hole water supply for fire-fighting and sanitation; and establishment offull emergency power supplies; and installation ofnew automatic landing and ground/air communication systems.. The runway overlay is recommended as part of a phased strengthening intervention which will also mitigate against reflective cracking and the risk of exposure of aircraft to
54 Flying Object Debris (FOD) fiom unbound surfacing material. This solution allows for further overlays/strengthening should traffiddeterioration ofthe runway warrant it at a later date. C.2 Institutional Support The project would also finance support to SLAA’s efforts to increase efficiency and competitiveness. A Management Study is envisaged with TA and the Master Plan for the airport will also be updated. -mnex 4, Table 3: Airport Component Cost Summar gUS%incl. taxf and contingel :ies) Item Total IDA S-Leone P
C.l Runway, Turning Loops & Lighting Rehab., and Equipment Improvements C.1.1 Works Runway RehabilitationWorks 3,800,000 3,420,000 380,000 Widening of Turning Loops & Taxiway accesses 4 10,000 369,000 4 1,000 AGL 74,200 66,780 7,420 Reloc. of a/c Holding Positions, Prov. of IlluminatedWind 114,500 103,050 11,450 Stock C.1.2 Goods ILS 1,200,000 1,080,000 120,000 Doppler VOR, Air-Ground Digital Communications 1,150,000 1,035,000 115,000 C.1.3 Supervision 600,000 600,000 0 Subtotal C.l 7,348,700 I 6,673,830 I 674,870 C.2 Water Supply System Upgrade ofAirport Water Supply 281.250 I 253.125 I 28.125 Subtotal C.2 281,250 253,125 28,125 C.3 Power Supply System Provision of Electricity Power Supply 978.750 880.875 97.875 Subtotal C.3 978,750 880,875 97,875 (2.4 Institutional Strengthening & Training Training 100,000 100,000 0 Subtotal C.4 100,000 1 100,000 I 0 Base Cost 8,708,700 I 7,907,830 I 800,870 Physical Contingencies 435,435 I 395,391 I 40,044
Price Contingencies P - Total Cost
ComDonent D: Project Coordination (US% 4.00m: Bank Financing US$4.00m) The project will finance project coordination and implementation management capacity building for the three sector-based components, through maintenance of the existing Coordination and Monitoring Unit (CMU) within the office of the Vice-president, with TA. The CMU will include financial management and environmental and social safeguard expertise, plus quality assurance and procurement capacity provided by the TA. The project will also finance Technical (and Financial Audits) and subsidiary studies such as an update to the Master Plan Study for the International Airport, as well as other studies to be identified.
55 1. taxes and c ntingen cies) - - d
IDA Sierra Leone
D.1 CMU Operations D.1.1 Local Consultant Fees Technical Coordinator 2 10,000 0 150,000 0 60,000 0 420,000 0
36,000 0 15,000 0 15,000 o 66,000 n
Office Consumables 15,000 15,000 Fuel & Lubricants 2 1,000 2 1,000 Vehicle Maintenance 109,500 109,500 Telephone, Fax & Postage 60,000 60,000 Office Equipment Maintenance 30,000 30,000 Stationary 30,000 30,000 Site Visit & Monitoring 60,000 60,000 0 Subtotal 3 2 5,5 00 325,500 0 Subtotal D.l 811,500 811,500 0 D.2 Equipment Vehicles 33,000 33,000 0 Office Equipment 50,000 50,000 0 Subtotal D.2 83.000 83.000 0 D.3 Training LocaYOverseas Training 112,000 112,000 0 Subtotal D.3 112.000 112.000 0 D.4 Audits. Other Studies & TA Technical and Financial Audits I 630,000 I 630,000 I 0
iotai aase Lost
56 Annex 5: Project Costs REPUBLIC OF SIERRA LEONE: Infrastructure Development Project -mnex 5, Table- 1: Total Project Costs Project Cost (including taxes)
Project Cost by Component and/or Activity Component A: Road Network A. 1 Core Network 13.59 12.96 0.64 95% A.2 Rural Roads 6.46 6.16 0.30 95% A.3 Institutional Strengthening & Training 1.oo 1.00 0.00 100% Subtotal 21.05 20.12 0.94 96%
Component B: Port of Freetown B. 1 Container Area Paving, Dredging, Fenders, 5.22 4.24 0.98 81% Ladders B.2 Environmental & Safety Equipment 0.78 0.62 0.16 80% B.3 Institutional Strengthening & Training 0.80 0.80 0.00 100% B.4 Severance Payment 2.30 0.00 2.30 0% B.5 Severance Package Support 0.50 0.50 0.00 100% Subtotal 9.60 6.17 3.43 64%
Component C: Freetown International Airport C.1 Runway, Turning Loops & Lighting Rehab., 7.35 6.67 0.67 91% and Equipment Improvements C.2 Water Supply System 0.28 0.25 0.03 90% C.3 Power Supply System 0.98 0.88 0.10 90% C.4 Institutional Strengthening & Training 0.10 0.10 0.00 100% Subtotal 8.71 7.91 0.80 91yo
Component D: Project Coordination D. 1 Coordination Operations 0.81 0.81 0.00 100% D.2 Equipment 0.08 0.08 0.00 100% D.3 Training 0.11 0.1 1 0.00 100% D.4 Audits, Other Studies & TA 2.57 2.57 0.00 100% Subtotal 3.57 3.57 0.00 100%
37.77 5.17 88% 1.89 0.26 88% Price Contingencies (7%) 3.01 2.64 0.36 88% PPF Reimbursement 1.70 1.70 0.00 100% Total Project Costs I/ 49.79 44.00 5.79 88% Interest During- Construction 0.00 0.00 0.00 Front-end Fee 0.00 0.00 0.00
Note I: The civil works costs shown include 7% supervision, 100% Bank funded. Note 2: The civil works shown are the Consultant's estimates, which include 10% contingencies
57 Consultant's Services
Consultant's Services Training and Workshops
Consultant's Services
58 Annex 6: ImplementationArrangements REPUBLIC OF SIERRA LEONE: Infrastructure Development Project
1. The project will be implemented by the individual implementing agencies, with a Coordination and Monitoring Unit (CMU) within the Office of the Vice President. The CMU will facilitate: coordination of the implementation, monitoring and evaluation; financial management and environment/social development safeguards - to ensure that project activities are carried out in conformance with the provisions of the Grant Agreement and Bank regulations. Each implementing agency, that is, Sierra Leone Roads Authority (SLRA), Sierra Leone Ports Authority (SLPA) and Sierra Leone Airports Authority (SLAA) will be responsible for implementing and reporting on the components in their respective sectors, with general oversight by the CMU supported by TA, which will also interact and support the 3 implementing agencies. Disbursements will be centralized through one special account managed by the CMU. 2. Drawing on lessons from TSP, the project will have simplified performance indicators and standard reporting formats for the implementing agencies will be established. This will be laid out in the Implementation Manual. Coordination and Monitoring 3. The CMU was originally created when the MOTC was scaled down in the 1990’s with Bank support. This reform converted the management of the roads, ports and airports sub sectors to parastatal organizations, while retaining a core entity focused on overall planning and coordination. The CMU has served as the coordinating agency for the development and implementation of the National Transport Policy and supervised the preparation of the National Transport Strategy and Investment Plan (SLNTP). It has been supported by the Bank through the RRMP and TSP. Under IDP, the CMUwill be maintained within the office of the Vice-president, staffed with: (i)a Technical Coordinator; (ii)an Environmental and Social Development Safeguards Specialist; (iii) a Financial Management Safeguards Specialist/Accountant; supported by procurement and quality assurance TA. Sierra Leone Roads Authority 4. The SLRA is the sole organization with the capacity to: assess the needs of the road sector; program, budget, review designs, and implement road development and maintenance works. SLRA, throughout the previous Bank funded TSP project, improved and proved its capacity in planning, programming, supervision of design of civil works; and in procurement and contracts administratiodmanagement. The ongoing PHRD funded Road Sector Management Action Plan study recommends a separation of the road fund management from SLRA, to leave SLRA free to focus on provision of planning and procurement services, as well as quality assurance oversight - with the associated creation of an independent Road Maintenance Fund (and Board) together with restructuring of SLRA. The Action Plan also includes, as a part of the sector reform, a mechanism to strengthen the ruralhrban road maintenance capacity ofthe local governments through the technical assistance provided by SLRA. The roads component to be funded in the proposed IDP will therefore be implemented by the SLRA. Sierra Leone Ports Authority 5. The National Commission for Privatization (NCP) will be the leading agency in reforming and restructuring institutional aspects ofthe port sector. The NCP has set up a dedicated Project Management Committee (PMC) with its own Technical Secretariat to effect the needed changes. The project will fund on as-needed-basis technical assistance to the PMC, to complement overall DflD planned technical support to NCP. Planned investments will be realized by SLPA directly, through existing technical capacities, augmented as needed by technical support.
59 Sierra Leone Airports Authority 6. The SLAA will be the implementing agency for the IDP airport component. SLAA is an established authority with a proven track record. Under the TSP they not only met all counterpart funding requirements but also directly funded addition complimentary development at the international airport. SLAA also had the distinction of routinely achieving unqualified and timely financial audits. This same management is expected to yield fully satisfactory results under the IDP. The only provisos concern: the need to ensure SLAA’s solvency and management capacity are not compromised, either by (i) Government handing over responsibility for the rehabilitation, operation and management ofthe domestic airports (which are unprofitable) unless all the related funding is provided directly by Government; or (ii) SLAA being required to continue to use SLNA for provision of ground handling services beyond December 3 1,2005. These concerns have been addressed through the Letter of Sector Policy and the legal agreements with Government.
60 Annex 7: Financial Management and Disbursement Arrangements REPUBLIC OF SIERRA LEONE: Infrastructure Development Project
Executive Summary
1. The objective of the Financial Management Assessment is to determine whether the entity identified for the implementation of the Infrastructure Development Project (IDP), has acceptable financial management arrangements in place. The assessments include reviews of the entity’s system of accounting, reporting, auditing and internal controls. The entity’s arrangement are acceptable if they are considered capable ofrecording correctly all transactions and activities, support the preparation of regular and reliable financial statements, safeguarding the entity’s assets, and are subject to satisfactory auditing process. 2. Financial management assessment was carried out for the Coordination and Monitoring Unit (CMU) of the Ministry of Transport and Communication and in particular its accounts unit. The assessments were carried out jointly by a World Bank Financial Management team and the Ag. Technical Director of the unit, who was responsible for the financial management of the just ended Bank funded Transport Sector Project. 3. The assessment team agreed that since there had been sign$cant changes to the finance unit under the TSP project, the Financial management internal control questionnaires would not be used and that actions will to taken to reconstitute the accounts unit to ensure that it is adequate and meets the Bank ’sfinancial management requirements. 4. The CMU will be responsible for overall project financial management; however the day-to-day financial management responsibility for the project will be vested in the project accountant, to be recruited competitively with quali3cations and experiences acceptable to IDA. 5, The conclusion ofthe financial management assessment revealed that although the CMU has had previous experience in management of Bank funded projects, changes have resulted in diminished financial management capacity which will require some actions to ensure that they meet the Bank’s requirements for financial management. These actions include; (i)appointment ofkey financial staff, the Project Accountant, with qualifications and experience acceptable to IDA; (ii)revise the existing financial procedures manual Country Accountability Issues 6. The Bank has carried out a limited scoped Country Financial Accountability Assessment (CFAA) for Sierra Leone. The report documents the public financial management system architecture, identifies weaknesses and makes recommendations to address them. A stakeholders workshop organized by the government of Sierra Leone in June 2002 endorsed the findings ofthe CFAA report and agreed an action plan to address the identified weaknesses. 7. The Government and the Bank through the Institutional Reforms and Capacity Building (IRCB) project are implementing some of the agreed actions which have a specific Public Financial Management Component to help achieve this. Other donors are also assisting the GOSL to implement other actions required to strengthen the overall public financial systems in the Country. 8. The summary risk analysis is based on the CFAA, the ongoing project work and our FM assessment of the CMU, the unit responsible for the solitary Special Account and the overall Financial Management ofthe Infrastructure Development Project.
61 Summary of Risk Analysis Risk Risk Rating Risk Mitigation Measure Inherent Risks: Country a) Weakness in legislative scrutiny of M rhis is expected to be revised in any new Act that will Budget and Audited Accounts. Chairman )e developed. of Parliamentary Finance committee (Budget) is the same as Chairman of Public accounts committee (audit). b) Weakness in the Banking sector and limited Bank branches at District and M rhere are no decentralized arrangements under the new provincial levels, leading to large roject. This is minimal to project. movement ofcash from the center to the provinces with the risks associated with cash holding. Most banks are located in the capital, Freetown and major Regions. c) Inadequacy ofremuneration ofpublic sector financial staff. M Key accounting staff will be recruited at competitive salaries. The staff to be recruited would be required to have a minimum acceptable qualification (as defined in TOR) and agreed with the Bank. Overall Inherent Risks: M Control Risks Implementing Entities: Staffing: CMU a) Staff recruited may not stay in Competitive private sector salaries are expected to be position. offered to selected candidate. b) Accounting procedures manual not Selected candidate will be required to sign a revised or updated regularly. performance contract with set deliverables, including c) Accounting staff may not be allowed introduction ofan FMS. to perform his tasks effectively. He will be required to maintain a high degree of professionalism at all times. Internal controls:
CMU a) management may not put in place Agreements have been reached on furfher adequate controls and systems for the strengthening ofan effective finance unit within the project. CMU. The project will fund the cost ofa fully qualifiec b) inadequate segregation of accounting accountant. functions. The financial system will be documented in a c) procedures are not fully documented procedures manual. This will include the relevant in a manual to guide the project staff. controls, job descriptions, approval processes and reporting needs. The procurement ofthe accountant and the establishment of financial systems will be a requirement for effectiveness.
62 Risk Risk Rating Risk Mitigation Measure Flow of Funds. NIA Funds will be centrally managed by CMU and there will be no funds flowing to the other participating aeencies. Internal Audit (IA)
CMU a) no internal audit unit within the M Procedures laid out in the accounting manual will project. ensure the approval processes involve officers ofthe implementing agencies who are outside the CMUof the project. External Audit
Audited financial statements ofthe S The appointment ofindependent auditors for the implementing entities would be submitted project will be completed by May 2006 late. Agreements would be reached with the Auditor- General to appoint auditors for the entities for 2 year periods and in good time to enhance timely submission ofaudit reports. Information Systems
CMU a) accounting system may not be M CMU will be assisted to introduce a small project computerized accounting software. b) may not have the skills to effectively Staff will be trained in its use. use a computerized accounting system. Overall Control Risk M Implementation Arrangements (Please refer to Annex 6 for the detailed implementation arrangements)
Coordination and Monitoring Unit (CMU) The previously established CMU will be maintained within the office of the Vice-president. The CMU will continue to be headed by a Technical Director and supported by key staff including the Project Accountant. The accounts unit of the CMU will be responsible for financial management under the project. The accounts unit will be headed by a Project Accountant, who will be professionally qualified and have job experiences acceptable to IDA. The project Accountant will be assisted by accounts assistants as necessary, whose qualifications and job descriptions shall also be acceptable to IDA. The accountant will ensure that the project resources are managed efficiently to effective project implementation. He will ensure the correct recording of all transactions, prompt payments for all services rendered, timely preparations of all financial reports, including the financial monitoring reports and prompt conduct of project audit at the end of each financial year. The project accountant will also ensure that the current project accounting manual is revised and the reporting requirements ofthe new project incorporated. 1. Financial Auditing Arrangements Independent and qualified financial auditors acceptable to the Bank would be selected to carry out the audit of the project. The selection of financial auditors shall be on competitive basis and in accordance with the Bank's guidelines and would be in place before the project becomes effective.
63 The project financial statements including movements in the special accounts will be audited in accordance with International Standards ofAuditing (ISA) and a single opinion will be issued to cover the project financial statements, SOEs and the special account, in accordance with the Bank’s new audit policy The financial auditors’ report and opinion in respect of the audited financial statements for the project including the management letter would be furnished to the World Bank within six months of the close of each fiscal year. In addition, copies of the audited financial statements of SLRA, SLAA, and SLPA are required, under the terms of the DGA, to be submitted to the IDA within six months after the year end. 2. Disbursement Arrangements The proceeds ofthe Grant would be disbursed over a 5-year period.
;rant Proceeds by Categor-with Disbursement Percentages - Amount of Grant YOof Expenditures Bank Financed Allocated (Expressed in Category us%x1000) 1. Civil Works 26,800 (a) SLRA 17,805 95% of Foreign & Local Costs ., (b) SLPA 3,903 80% of Foreign & Local Costs (c) SLAA 5,093 90% of Foreign & Local Costs
2. Goods 2,823 (a) SLRA 0 95% of Foreign & Local Costs (b) SLPA 625 80% of Foreign & Local Costs (c) SLAA 2,115 90% of Foreign & Local Costs (d) CMU 83 100% ofForeign & Local Costs
3. Consultant Services 6,841 (a) SLRA 2,312 100% of Foreign & Local Costs (b) SLPA 94 1 100% of Foreign & Local Costs (c) SLAA 600 100 of Foreign & Local Costs (4 CMU 2,988 100 ofForeign & Local Costs
4. Training 912 100% of Foreign & Local Costs
5. CMU OperatinP Costs 392 100 of Foreign & Local Costs
Refunding of PPF 1,700 100 of Foreign & Local Costs
Unallocated 4,532
64 Use Statement of Expenditures (SOEs) Disbursements for all expenditures would be against full documentation, except for the following: contracts below US$50,000 equivalent each for works and for consulting services provided by individuals; purchase orders below US$20,000 equivalent each, for goods and services other than consulting services; contracts below US$lOO,OOO equivalent each for consulting services provided by firms; and for individual training and CMU’s incremental operating costs of less than US$lO,OOO for all ofwhich disbursements would be based on statement ofexpenditures (SOEs). Supporting documentation for SOEs would be retained by the implementing entities for review by IDA missions and external auditors. Special Account (SA) To facilitate disbursements, the project will open and CMU will operate one Special Account at a commercial bank, under terms and conditions satisfactory to the IDA. Upon Grant effectiveness, a sum of US$ 1.5m would be deposited by the World Bank into this account, with a second tranche to raise the Special Account allocation amount to US$3 .Om when the project has disbursed SDR5.Om. Further deposits would be made into this account against withdrawal applications supported by appropriate documentation. 3. Reporting and Monitoring The project will prepare quarterly project financial monitoring reports (FMRs) in the areas of finance, procurements, including complaints from bidders, and project progress. The implementing entities would be required to prepare these reports for their various activities for submission to CMU for consolidation and submission to the Bank. The reports are; The Quarterly Financial Reports; which would consist of a statement of cash receipts by sources and expenditures by main expenditure classifications for the period and cumulatively; cash balances of the project; and supporting schedules comparing actual and budgeted expenditures; Quarterly Physical Progress Report; include a narrative information and output indicators, linking financial information with physical progress and report on issues that require attention; Quarterly Procurement Management Report; would consist of information on procurement for goods and works and that for consultants’ services and compliance with agreed procurement methods. The report compares procurement performance against the plan agreed at negotiations and appropriately updated at the end of each quarter. The report should also provide any information on complaints by bidders, unsatisfactory performance by contractors and any contractual disputes. The content and format ofthese reports has been agreed upon during negotiations.
65 Annex 8: Procurement REPUBLIC OF SIERRA LEONE: Infrastructure Development Project
A. General 1. Procurement for the proposed project would be carried out in accordance with the World Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits’’ dated May 2004; and “Guidelines: Selection and Employment of Consultants by World Bank Borrowers” dated May 2004, and the provisions stipulated in the Legal Agreement. The general description of various items under different expenditure category is described below. For each contract to be financed by the LoanlCreditiGrant, for the first 18 months of project implementation, the different procurement methods or consultant selection methods, the need for prequalification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank project team in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. No later than 45 days after the end ofeach quarter, the CMU shall submit to IDA a procurement monitoring and contract expenditure and progress report as part of the Financial Monitoring Report (FMR). A new Public Procurement Law was enacted by parliament and signed into law by the President in December, 2004. The new law is based on the UNCITRAL Model Law on Procurement and is consistent with good public procurement practice and the Bank’s Procurement Guidelines. All government entities which use public funds are required to comply with the law. The National Public Procurement Law will generally be applicable under this project wherever the agreement provides that procurement is to follow national procedures acceptable to the Bank. The Act includes a provision that the procedures in any agreement signed with international financial institutions supersede the Act. Therefore, use ofWorld Bank Procurement Guidelines is consistent with the country’s procurement law. The Law requires Procuring Entities to establish Procurement Committees. So the implementing agencies for this project will be required to establish such committees. These Committees will review and approve all recommended contract awards before they are proposed to the Bank for no objection. 2. Procurement of Works: Works procured under this project, would include: improvement, upgrading, rehabilitation and routine, recurrent and periodic maintenance ofthe road network, the airport and the port. Other works include minor office rehabilitation and associated works. The procurement will be done using the Bank’s Standard Bidding Documents (SBD) for all ICB and National SBD satisfactory to the Bank. 3. Procurement of Goods: Goods procured under this project would include: CMU vehicles, computers and office and field equipment as well as safeguards and capacity building inputs for the CMU and the various implementing agencies, plus airport and port terminal handling plant and equipment as well as spare parts and accessories. The procurement will be done using Bank’s SBD for all ICB and National SBD satisfactory to the Bank. 4. Procurement of non-consulting services: Non-consulting services to be provided under the project include maintenance of plant and equipment and computers. Bidding documents for non- consulting services will be agreed with the Bank. 5. Selection of Consultants: Consulting services to be provided under the project will include engineering design and construction supervision for works as well as various studies for institutional strengthening, environmental and social development assessments and management. Short lists of consultants for services estimated to cost less than $100,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.
66 6. Operational Costs: which would be financed by the project would be procured using GOSL administrative procedures which have been reviewed and found acceptable to IDA. 7. Others: Training programs are geared toward building capacity and improving management and skills of staff of the implementing agencies and other participants in the transport industry and associated regulatory and coordinating bodies. These training plans would be subject to IDA prior review, as would be workshops. B. Assessment of the Agencies’ Capacity to Implement Procurement 8. Under the project, the Internal Procurement Committee in each implementing agency will be responsible for their own procurement. The various implementing agencies and the CMU are familiar with Bank procurement policy and procedures, having implemented the preceding project, the Transport Sector Project. The CMU (with TA) will provide procurement support to the Implementing Agencies, The CMU is envisaged as staffed with individual consultants including: a Technical Director; a Financial Management Specialist; an Environmental and Social Development Specialist; and a Procurement/Quality Assurance TA. 9. An assessment ofthe capacity of the Implementing Agency to implement procurement actions for the project has been carried out by a, Sr. Procurement Specialist (AFTPC) of the World Bank in September 2004. The assessment reviewed the organizational structure for implementing the project and the interaction between the implementing agencies’ staff responsible for procurement and the CMU. The CMU will prepare a simple procurement procedures manual (PPM) for the project consistent with the Public Procurement Act. The PPM will detail the flow of work as well as the procurement method and prior review thresholds. 10. Most ofthe issues/ risks concerning the procurement under the project have been identified and include delays in processing procurement, relatively high prices for vehicles, computers and office equipment procured using shopping procedures from Sierra Leonean suppliers and poor procurement records management. The corrective measures which have been agreed are appropriate packaging to limit the use of shopping procedures, inclusion of foreign suppliers under shopping procedures and procurement from IAPSO where appropriate. The project also includes continuous training in procurement for the procurement officers, the accountants and the IPC in all the implementing agencies. The procurement officers and some key staff in the implementing agencies who have not yet received Bank supported procurement training, will be afforded the opportunity to attend the Bank supported procurement courses at the Ghana Institute of Management and Public Administration (GIMPA) or the East and South Africa Management Institute (ESAMI) to ensure that they are familiar with the new Procurement and Consultants Selection Guidelines. The World Bank - Ghana Office will also provide hands-on training in procurement records keeping to CMU and all the implementing agencies. Overall Procurement Risk Assessment: Average 11. Frequency ofprocurement supervision missions proposed: One every 6 months (includes special procurement supervision for post-review/audits)
67 Table 1: Thresholds for Procurement Methods and Prior Review- - Expenditure Contract Value Procurement Method Contracts Subject to Category (Threshold) Prior Review
c USD USD Works ~500,000 ICB All contracts >=50,000 - =< 500,000 NCB First Contract < 50,000 Shopping None All values Direct contracting All contracts Goods and Services > 150,000 ICB All contracts other than Consulting >= 20,000 - = < 150,000 NCB First contract Services < 20,000 Shopping None All values Direct Contracting All contracts Consulting Services >= 100,000 firms QCBSlQBSlLCSiFBS All contracts Below 100,000, firms QCBS/QBS/LCS/FBS/ None CQS >= 50,000 individuals Individual All contracts < 50,000, individuals Individual None All values Sinele-Source Selection All contracts
C. Procurement Plan 12. The Borrower, at appraisal, developed a Procurement Plan for project implementation which provides the basis for the procurement methods. This plan has been agreed between the Borrower and the Project Team on May 24, 2005 and is available at the Coordination and Monitoring Unit, Freetown. It will also be available in the Project’s database and in the Bank’s external website. The respective Procurement Committees will monitor the implementation of the Procurement Plan and will update it annually in agreement with the Project Team or as required to reflect the actual project implementation needs and improvements in institutional capacity. D. Frequency of Procurement Supervision 13. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment ofthe Implementing Agencies and the CMUhas recommended supervision missions every six months to visit the field to carry out post review ofprocurement actions.
68 Attachment 1
Details of the Procurement Arrangement involving international competition
1. Goods, Works and Non-Consulting Services.
1) Li of contra- ich will k procui llowinl 2B and D :ct contracl _= - 1 2 3 4 5 6 7 8 0 P - - - Expected Domestic Review by Bid Ref. Estimated Procui 'reference Bank Opening Contract (Description) cost Methc (yeslno) T&or/Post) Date Zomments No. I_ 7 P - 2%. WORKS A. Road Network A. 1 Core Network 1.1 Makeni-Matotoka 4,550,777 ICB N N Prior 1.2 Bo-Kenema 3,679,132 ICB N N Prior A.2 Feeder Road Network 1.3 Koinadugu District 1,164,800 NCE N N Prior 1.4 Kailahun District 1,164,800 NCE N N Prior 1.5 Kono District 1,164,800 NCE N 1.6 Other Selected District 3,266,667 NCE N N Prior B. Port of Freetown Container Area, 1.7 Dredging, Fenders, 5,463,920 ICB N N Prior Ladders C. Freetown Intl Airport Runway, Turning 1.8 Loops & Lighting 6,337,744 ICB N N Prior Rehab.; & Equipment Improvements,Water & Power Supply
GOODS B. Port of Freetown 1.9 Navigational Aids 344,960 ICE NIA N Prior 1.10 Environmental 529,760 ICE NIA N Prior Reception Facilities C. Freetown Intl Airport 1.11 ILS 1,344,000 ICE NIA N Prior Doppler VOR, Air- 1,288,000 ICE NIA N Prior 1.12 Ground Dig-Com D. Project Coordination 1.13 Vehicles 36,960 IAPS NIA NIA Post 1.14 Office Equipment 56,000 ,Shop? NIA Y Post =_ - *Including contingenc :S
(b) Works Contracts estimated to cost above US$ 500,000 per contract, and Goods Contracts estimated to cost above US$ 150,000 and all Direct contracting will be subject to prior review by the Bank.
69 2. Consulting Services.
*Including contingencies
(b) Contracts for consultancy services estimated to cost above US$ 100,000 for firms and above US$ 50,000 for individuals and Single Source selection of consultants (firms) will be subject to prior review by the Bank.
(c) Short Lists composed entirely of National Consultants: Short lists of consultants for services estimated to cost less than US$ 100,000 equivalent per contract, may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.
70 Table A: Project Costs by Procurement Arrangements
Total by Prc urement Method (US% million)
Expenditure Category Pro( rement Mc nod ICB NCB Other NBF Total P
Civil Works 24.62 8.17 0.00 0.00 32.79 IDA financing 22.32 7.69 0.00 0.00 30.02
Goods 3.51 0.09 0.00 0.00 3.60 IDA financing 3.07 0.09 0.00 0.00 3.16
Consultant Services 0.00 0.00 9.23 0.00 9.23 IDA financing 0.00 0.00 9.23 0.00 9.23
Training and Workshops 0.00 0.00 3.67 0.00 3.67 IDA financing 0.00 0.00 1.09 0.00 1.09
Operating Costs 0.00 0.00 0.50 0.00 0.50 IDA financing 0.00 0.00 0.50 0.00 0.50
-P P Total Project Costs 28.13 8.27 13.40 0.00 49.79 25.39 7.79 10.82 0.00 44.00 - - P 11 costs include contingencies. 21ncludes civil works and goods to be procured through national shopping, consulting services, services of contracted staff ofthe project management office, training, technical assistance services, and incremental operating costs related to (i)managing the project, and (ii)re-lending project funds to local government units.
Total value of contracts subject to prior review: US$42.27m
Table B: Allocation of Grant Proceeds
* Including contingencies
71 Use of statements of expenditures (SOEs): Disbursements for all expenditures would be against full documentation, except for the following: contracts below US$50,000 equivalent each for works and for consulting services provided by individuals; purchase orders below US$20,000 equivalent each, for goods and services other than consulting services; contracts below US$100,000 equivalent each for consulting services provided by firms; and for individual training and CMU’s incremental operating costs of less than US$lO,OOO for all ofwhich disbursements would be based on statement ofexpenditures (SOEs). Supporting documentation for SOEs would be retained by the implementing entities for review by IDA missions and external auditors. Special Account: To facilitate disbursements, the project will open and CMU will operate one Special Account at a commercial bank, under terms and conditions satisfactory to the IDA. Upon Grant effectiveness, a sum ofUS$ 1.5m would be deposited by the World Bank into this account, with a second tranche to raise the Special Account allocation amount to US$3.Om when the project has disbursed SDR5 .Om. Further deposits would be made into this account against withdrawal applications supported by appropriate documentation
72 Annex 9: Economic and Financial Analysis REPUBLIC OF SIERRA LEONE: Infrastructure Development Project
Economic Analvsis Methodology. The economic analysis was conducted using the highway development and Management (HDM-4) Model developed by the World Bank. The model simulates life cycle road conditions and costs and provides economic decision criteria for multiple road design and maintenance alternatives, based on a survey ofroad characteristics, traffic, and agency and user costs. The analysis compares the incremental benefits and the investment costs. Incremental benefits result from the variation in vehicle operating costs between the with and the without project cases.
Core Road Network Investments. The proposed investments are expected to yield direct benefits to road users, through a reduction in vehicle operating costs. The roads within the project serve areas of good agricultural potential and since the trucking industry is by and large competitive, it is expected that at least part of the savings on vehicle operating costs would be passed on, over a period of time, to agricultural producers and consumers. The two project roads run through four of the country’s 13 districts: Bamboli, Tonkolili, Bo and Kenema, as well as providing the basic connecting links to the East. It is expected that the private bus service will respond to improvements in road conditions and extend coverage and increase frequencies, providing increased access to remote areas in the four districts and beyond. To the extent this materializes, rehabilitation is also expected to ultimately benefit all members of the community, through improvements in their accessibility to markets, competitively transported goods and in availability ofsocial services.
Table 1: Core Roads Economic Analysis Results
11 Matotoka I 1
Sensitivity analysis has been carried out to assess the effects ofvariations in the values ofmajor cost and benefit items. With a 20% increase in costs and an equivalent decrease in benefits, the ERR is still a healthy 26.0% for the Bo-Kenema road; a similar variation in costs and benefits for the Makeni-Matotoka road leads to a lower but still healthy ERR of 17.2%.
It is assumed that routine and periodic maintenance on the network will be financed by the new Independent Road Maintenance Fund (IRMF), as far as funds allow. The IRMF’s resources are to be generated by user fees (primarily fuel levy and registration fees for vehicles and drivers), which are to be directly transferred to the fund without passing through the Treasury. This mechanism should provide adequate and reliable funding for maintenance of the core roads, provided the fuel levy is increased to the target level ofnot less than US$ O.lO/liter. The fuel levy is currently set at le 750/ imperial gallon or US$ 0.06/liter (@ US$ 1= Le 2700). Further quarterly increases in the fuel levy as recommended by the Petroleum Unit, to increase it to US$O.lO per liter has not yet been implemented - and there has been no change in the fuel levy since November 2003. The project will provide institutional support to the SLRA
73 and the independent Road Maintenance Fund in the planning and implementation of the annual maintenance programs. If the roads rehabilitated under the project are not maintained as assumed in the analysis, the project will not yield the returns estimated above.
Rural / Feeder Road Infrastructure investments. The rural and feeder road infrastructure to be included in the project have not yet been identified. These investments are expected to focus on low volume roads for which economic analysis based on vehicle operating cost savings is not appropriate. Instead, the roads selected for inclusion in this component will be prioritized according to the Agricultural Development plans for each district and the size of the population that would gain access through the proposed roads. This approach is expected to maximize the number ofrural people with access to an all- weather road and the markets, social services and poverty reduction benefits such access facilitates. For the selected roads, a cost effectiveness approach will be used in the design of the rehabilitation interventions. The designs will also be formulated around labor based technology for both construction and maintenance, both for sustainability and employment generation.
Port Investments. The project will finance the expansion of the paved container stacking area, plus specialized equipment to meet internationally recognized environmental and safety standards (particularly related to navigational aids, oil spills, waste management and safety and security management). The civil works investments in the port, in conjunction with privatized container handling operations, are expected to improve efficiency and thereby yield savings in ship turn around times, and savings in equipment maintenance as well as maintenance ofthe terminal itself. The economic benefits ofpaving the container stacking area alone are less than robust (the majority of the benefits would not accrue directly to Sierra Leonean entities or nationals). A paved container stacking area is part of the package that would yield efficiency improvements with privatized container handling operations. This component is therefore to be linked with the concessioning of the container handling operations.
Counterpart funding requirements for port investments will be met by SLPA. The reforms at SLPA include retrenchment of staff - severance costs associated with this will be paid by the central Government. Indirectly, the cost of development and maintenance ofbasic infkastructure at the Port will be borne by the concessionaire and license holders through the fees and royalties collected by SLPA.
Airport Investments. The physical investments at the airport will comprise: (i)a 50mm asphalt overlay of the runway as a phased strengthening intervention which will also provide protection against Flying Object Debris (FOD) and resistance to reflective cracking and further FOD risk; (ii)widening ofrunway shoulders and relocation of runway lights for compliance with ICAO regulations, taxiway and turning loop redesign for accommodation ofmodem aircraft; (iii)water supply enhancement for fire-fighting and sanitation; and (iv) provision of stand-bye power supply for airport safety and security; and (v) new automatic landing and ground/air communications systems. These investments are justified on the basis of safety and security and for compliance with international regulations. As such, no economic analysis has been applied in their justification.
Fiscal Impact
Road Component. The fiscal impact related to this component is due to counterpart funding, estimated at US$ 1.05 m (including contingencies), which will be provided by the central government. Since the project is grant funded, there is no repayment ofprincipal and interest.
No increase in the level of recurrent expenditures is envisaged in respect of pure routine and periodic maintenance of the core roads and the rural roads rehabilitated under the project, since all these costs will be funded from the new Independent Road Maintenance Fund, when it is established. Nor is any increase in the level ofrecurrent expenditures envisaged in respect ofpure routine and periodic maintenance ofthe
74 feeder roads rehabilitated under the project, since all these costs will now be funded by local district councils; and, in any event, the maintenance costs are being minimized through designing for labor-based maintenance.
Airport Component. As a revenue earning entity, SLAA will provide the counterpart funding for the airport component.
Port Component. Counterpart funding for the port component will be provided by SLPA. The severance payments for approximately 1200 staff made redundant during the conversion of SLPA to a Landlord Port will also come from SLPA revenues supported as necessary by funding from the central Government.
75 Annex 10: Safeguard Policy Issues REPUBLIC OF SIERRA LEONE: Infrastructure Development Project
Safeguard Related Impacts and Mitigation
Road component.
1. The main environmental impacts identified during the construction period involve potential destruction to agricultural land, walls or other structures along the roads, resulting from earth excavation and disposal of cut material. Also noted is potential pollution of soil and groundwater resources from spillage of petroleum products and paving materials. Potential negative impacts of contractors’ construction camps include groundwater or soil pollution from sanitary facilities and the increased risk of HIV/AIDS and other sexually transmitted diseases. Temporary air quality impacts will result from excessive dust and uncontrolled emissions from construction vehicles. Borrow areas, if not protected during, and rehabilitated after use, can pose a public safety hazard and lead to land degradation and/or erosion. Impacts during the operational period include increased risk of accidents due to higher speeds along the improved roads, potential increase in air emissions and the above impacts associated with road maintenance contracts.
2. Traditionally, these paved trunk roads have provided lifeline connections between Freetown and the rest of the country, from which most of the remaining primary and secondary roads emanate. The Government’s strategy is to restore these and other essential links as a fundamental basis for enabling the implementation ofthe poverty reduction and economic growth programs, including delivery of social and administrative services throughout the country, addressing food security through access to agricultural extension, inputs and markets and achieving national integration.
3. The major social safeguard issue involves potential land acquisition which may be necessary within the context of the rural/feeder road component. To address this issue a Resettlement Policy Framework (RPF) has been prepared which will allow for potential physical relocation, compensation and resettlement, It will be implemented by consultants under the supervision of the Implementing Agency (SLRA) overseen by the CMU.
4. Interventions on the core primary and rural road infrastructure will generate direct employment benefits among the local population, particularly the rural roads, implemented through the highly successful labor-intensive approaches using youth and ex-combatants and developed by the Feeder Roads Department under TSP. Other beneficiaries include: transporters who will benefit from lower vehicle operating costs; men and women travelers who will benefit from lower transport costs and improved access to social, market and administrative services; local contractors and consultants who will benefit from the establishment of a more stable contracting environment for programmed maintenance through the reformed Road Maintenance Fund; and indirectly farmers and food consumers through basic infrastructure facilitating the movement of inputs, marketing of outputs and the provision of extension services.
5. The Project will address operational impacts identified earlier for each road. These may be implemented through financial support from the Road Maintenance Fund to avoid deterioration of the rehabilitated road and associated dust and safety problems. Maintenance contractors will be required to follow procedures similar to those for the construction contractors concerning proper disposal of construction waste, control measures for waste fuel, oil and lubricants and adoption of health and safety measures for personnel. Expected increases in traffic levels are not expected to be so high as to bring
76 about a significant increase in air pollution, and this may in fact decrease due to smoother and less dusty roads and improved vehicle standards. Suspended dust caused by vehicles will be reduced by the rehabilitation of the roads, due to the large number of road subprojects which include resurfacing and sealing operations.
Port component.
6. Substantial institutional changes of SLPA and at the port will include privatization of the cargo handling and also restructuring of the administration. These changes will lead to retrenchment of a comparatively large number of casual labor and staff, see below. It will be important to ensure that the socio-economic implications ofretrenchment are taken into consideration for the purpose of minimizing the adverse impact on casuals and staff. The best way to do this is to first carry out a socio-economic baseline study of the casual and staff profile. Secondly, a communication action plan should be implemented in order to share relevant information with the concerned workers. Thirdly, there should be put in place a support system which will ensure that retrenched casuals and staff are provided with practical training and other income generating opportunities. Lastly, the retrenchment exercise should be monitored, using the information in the socio-economic baseline study and adequate indicators, to make sure that casuals and staff are not experiencing undue hardship and lowered standards of living, i.e. that the exercise will not lead to increased poverty.
7. Currently SLPA has a staff of 1552. it is foreseen that the following reform of the sector, SLPA as a landlord will only require about 350 staff, thus requiring about 1200 people to be made redundant and/or redeployed as private sector participants. Additionally, following significant reduction in numbers in 2003 and 2004, there are now about 1000 registered casual workers. Some of these may possibly organize in a Dock Labor Company in parallel to the Port reform.
Airport component.
8. Specific measures to reduce potential impacts of physical works will be taken; regarding the detailed design, construction tenders, construction process and contractor performance monitoring. Contracts will contain requirements for proper management of construction waste; control measures for waste fuel, oil and lubricants; reduction of noise and dust levels; and rehabilitation of areas used for construction detours, and sites used to temporarily store construction materials. Contractors will be required to provide and maintain equipment with proper noise abatement controls.
9. Specific provisions will be included in construction contracts to mandate the use of formal health and safety measures to minimize accidents and avoid fatalities during the construction process. Construction contracts will utilize the Standard Bidding Documents for Small Works (less than US$ 10 million). Standard environmental requirements will be incorporated into the Technical Specifications.
10. Additionally, contractors will be required to carry out an HIV/AIDS Awareness Program for Contractor Employees and Others. This will be based on the standard format for engaging communications specialists (developed by the Cape Verde HIV/AIDS Project). To ensure full understanding of the above clauses and HIV/AIDS Awareness Program by the contractors, all pre- qualified contractors will attend a Pre-Tender conference, where they will be briefed concerning their responsibilities to address environmental, health and safety issues. These briefings will outline specific provisions of the construction tender documents and contracts, as laid out in the Part 11, Conditions of Particular Application (COPA).
11, Oversight for environmental management will be assured by the CMU Environmental Specialist. During the TSP, the Specialist assisted two parastatals, SLAA and SLRTA (Road Transport Authority), to establish environmental units, while work is in progress for new units in SLRA and SLPA. The units
77 consist of engineers trained by the CMU Environmental Specialist, who also oversees and effectively supervises their activities. The Specialist has also established an HIV/AIDS Management Team for the Transport Ministry which includes ministry and parastatal officials, as well as other stakeholders such as representatives of the motor driver's union. Also, the CMU Environmental Specialist has been appointed member of the Steering Committee of the Environmental Division of the Ministry of Lands, Country Planning and the Environment. In general, the CMU Environmental Unit functions as a resource center for the parastatals, and provides information, support and safeguard checks on environmental issues.
Mitigation Funding
12. Cost of Design Measures. The quantities, specifications and estimated costs of design measures to avoid or mitigate negative impacts will be assessed by the design consultant and incorporated into the works bidding documents. The contractor will execute all required works and will be reimbursed through pay items in the bill ofquantities, which will be financed by the project.
13. Temporary Land Acquisition. Temporary acquisitions for diversions, camps, borrow areas and other work sites will constitute a community contribution. Additional costs of rehabilitating all such areas to their original state will be incurred by the contractor and borne by the project, as a pay item in the bill of quantities. Temporary acquisitions for diversions, camps, borrow areas and other work sites will constitute a community contribution but will also be subject to compensation if individuals or communities suffer any losses ofproperty, crops, resources or access to resources.
14. HIWAIDS Awareness Program. The quantities, specifications and estimated costs of the HN/AIDS Program will be assessed by the design consultant and incorporated into the works bidding documents. The contractor will execute the program through a subcontract and will be reimbursed through pay items in the bill ofquantities, which will be financed by the project.
15, Resettlement Costs. The quantities, specifications and estimated costs of compensation will be specified in the Resettlement Action Plan and incorporated into the works bidding documents. The contractor will effect payments and will be reimbursed through pay items in the bill of quantities, which will be financed by the Government.
16. Operational Costs. During operations, the costs of mitigation in the course of maintenance contracts will be incurred by the contractor and borne by the employer, who may be the Road Fund, Government or local government, and reimbursed as a pay item in the bill of quantities. The maintenance of footpaths and other social measures on feeder roads will be the responsibility of the community. In addition, the community will be expected to carry out basic cleaning ofdrains and culverts as part oftheir contribution to maintenance. The cost of safety and driver information campaigns will initially be borne by the project. However, the communities will be responsible for continuous community education and safety campaigns. Selected safety audits will be carried out by the project, in conjunction with communities.
78 Monitoring and Supervision Arrangements
17. During the construction period, the Consultant Resident Engineer (RE) will be responsible for monitoring compliance by the contractor of all environmental related issues as specified in the contact clauses, EMP and Resettlement Action Plan. This will be reported in the RE’Smonthly reports, which will be monitored by the DGISB. The RSSP Coordination office will also verify compliance with contract clauses prior to payment.
Supervision Arrangements
18. Following its exercise of prior review, the World Bank will monitor the implementation of road specific EMPs and potential Resettlement Action Plans. The Bank will also carry out targeted and spot review of specific social issues such as community contributions for temporary land acquisitions, involving land donation and asset replacements, as part ofregular supervision, or separate missions.
79 Annex 11: Project Preparation and Supervision SIERRA LEONE, REPUBLIC OF: Infrastructure Development Project
Planned Actual PCNreview November 26,2003 Initial PID to PIC December 11,2003 Initial ISDS to PIC November 5,2003 Appraisal May 9,2005 Negotiations October 24, 2005 Board/RVP approval December 06,2005 Planned date ofeffectiveness March 06, 2006 Planned date ofmid-term review June 30,2008 Planned closing date September 30,201 1
Key institutions responsible for preparation of the project:
The World Bank Ministry ofTransport and Communications CMU SLRA SLPA SLAA
Bank staff and consultants who worked on the project included:
Name Title Unit David Stephen Rudge Sr. Highway Engineer (TTL) AFTTR Gylfi Palsson Sr. Transport Specialist AFTTR Kavita Sethi Sr. Transport Economist AFTTR Kristine M. Ivarsdotter Sr. Social Development Specialist AFTS 1 Pierre Pozzo di Borgo Sr. Transport Specialist AFTTR Kofi Awanyo Sr. Procurement Specialist AFTPC Frederick Yankey Sr. Financial Management Specialist AFTFM Manush Hristov Legal Counsel LEGAF Wolfgang Chadab Finance Officer LOAG2 Alain Labeau Lead Transport Specialist, Peer Reviewer AFTTR Gerald Meyerman Peer Reviewer AFTPS G. George Tharakan Lead Transport Specialist, Peer Reviewer SASE1 Marc H. Juhel Lead Transport Specialist, Peer Reviewer TUDTR Charles Schlumberger Financial Sector Specialist, Peer Reviewer AFTFS Pierre C. Vieillescazes Sr. Financial Officer, Peer Reviewer IEF Jean-Francoise Marteau. Transport Specialist, Peer Reviewer AFTTR Farida Khan Operations Analyst AFTTR Yoshimichi Kawasumi Highway Engineer Consultant Nina M. Jones Program Assistant AFTTR Anne K. Njuguna Team Assistant AFTTR
80 Annex 12: Documents in the Project File REPUBLIC OF SIERRA LEONE: Infrastructure Development Project
1. General: 1.1 Sierra Leone: Letter of Sector Policy (dated October 28,2005) by the Ministry ofFinance 1.2 Sierra Leone National Transport Strategy and Investment Plan (2003-2007) dated July 2003 by MOTC 1.3 Integrated Safeguards Data Sheet (dated May 5,2005) 1.4 Project Information Document (dated May 5,2005) 1.5 Food Security Strategy for Sierra Leone (dated September 2004) by WFPAJNDP for the Ministry ofAgriculture, Forestry and Food Security 1.6 Socio- Economic Impact Analysis ofthe SLPA and SLAA Rehabilitation Works dated March 200 1 by consultant: Dr. Paul Tengbe for MOTC 1.7 Comparative Study of the Conditions of Services in Selected Parastatal in the Transport Sector dated February 2001 by consultant: Josie Elliot & Associates 2. Roads Component: 2.1 Road Sector Management Action Plan Study: Final Report Volume I& I1 (dated July 2005) by consultant: AFRICONEEMMATS for Sierra Leone Roads Authority (SLRA) (PHRD study) 2.2 MSUCommercialization/ Privatization Study: Final Report (dated December 2004) by consultant: WSP for SLRA 2.3 Technical Assistance to the Director and the Mechanical Service Unit: Final Report dated December 2004 by consultant: WSP for SLRA 2.4 Socio- Economic Impact Assessment ofthe Feeder Roads System dated October 2004 by consultant: ECOFIN for SLRA 2.5 Feasibility and Preliminary Design for Rehabilitation of lOOKM of Paved Roads: Phase I:Final Report dated September 2005 by consultant: Mouchelparkman/CEMMATS for SLWMOTC (PHRD study). 3. Port Component: 3.1 Port of Freetown Equipment needs and physical expansion feasibility study final report dated January 2005 by NIRAS Port Consultant NS for MOTC 3.2 Action Plan for the Privatization ofthe Core Activities ofthe Sierra Leone Ports Authority, Final Report dated May 25,2005 by consultant: Alan Harding 3.3 Report ofa Diagnostic Study on the Operations and Management of Sierra Leone Port Authority dated November 2004 by consultant: Ghana Ports & Harbors Authority for National Commission for Privatization 3.4 Bidding Documents for (i)the Ferry Management Services Agreement to Operate and Maintain the M.V. “Mahera” and Provide a Scheduled Freetown-Tagrin Vehicular Ferry Service; (ii)the Sales of Slipway Equipment; and (iii)Slipway Lease Agreement; dated August 2005 by Legal Contract Consultant RSD Wright and General Consultant Pannel Ker Forster for NCP 4. Airport Component: 4.1 Technical Evaluation, Detailed Engineering Design, Preparation ofTender Documents Upgrading of Lungi Airport Infrastructure Phase I:Final Report dated July 2005 by Consultant: Mouchelparkman UK for MOTC (PHRD study) 4.2 Sierra Leone Airports Authority: Proposed Revised Investment Program for World Bank Funding (dated May 2005 by Consultant: Mouchelparkman UK for MOTC for MOTC 4.3 Sierra Leone Aviation Study: Final Report dated December 2002 by consultant: BoodAleeldHamilton for MOTC
81 Annex 13: Statement of Loans and Credits SIERRA LEONE, REPUBLIC OF: Infrastructure Development Project
Annex 13: Statement of Loans and Credits SIERRA LEONE: INFRASTRUCTURE DEVELOPMENT PROJECT 22-Aug-05 Difference Between Expected and Actual Oriainal Amount in US$ Millions Disbursements '
Project ID Project Name IBRD IDA Cancel, Undisb, Orig. Frm Rev'd
PO74320 SL-Basic Edu Rehab (FY03) 0.00 20 13.40 3.44 PO73883 SL-HIVIAIDS Response (FY02) 0.00 15 8.10 3.55 PO74128 SL-Health Sec Reconstr & Dev (FY03) 0.00 20 16.46 8.32 PO78613 SL-lnst Reform &Cap Bldg TAL (FY04) 0.00 25.12 17.75 -5.62 PO79335 SL.Natl Soc Action (FY03) 0.00 35 23.61 6.17 PO87203 SL-Power & Water SI1 (FY05) 0 00 35 33.80 9.32 PO02428 Urban Water Supply 0.00 39.2 0.014 3.19 3.15 0.00 189.32 0.014 116.30 28.33 Total: 0.00 378.6 0.028 232.60 56.66
SIERRA LEONE, REPUBLIC OF STATEMENT OF IFC's Held and Disbursed Portfolio In Millions of US Dollars Held Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic CeltelSierraLeon 1.15 0 0 0 1.15 0 0 0
Total Portfolio: 1.15 0 0 0 1.15 0 0 0
Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic
Total Pending Commitment: 0.00 0.00 0.00 0.00
82 Annex 14: Country at a Glance SIERRA LEONE, REPUBLIC OF: Infrastructure Development Project
Sierra Leone at a glance 4/27/05
Sub- POVERTY and SOCIAL Sierra Saharan Low. Leone Africa Income Development diamond' 2004 Population, mid-year (millions) 5.4 703 2.310 Life expectancy GNI per capita (Atlas method, US$) 200 490 450 GNI (Atlas method. US$ billions) 1.1 347 1,038 T Average annual growth, 1998-04 Population (%) 2.0 2.3 1.9 GNI Gross Labor force (%) 2.3 2.4 2.3 per primary Most recent estimate (latest year avallable, 1998-04) capita enrollment Poverty (% of population below national povertv line) 70 Urban population (% OF total RoDulationi 39 36 30 Life expectancy at birth (years) 39 46 65 1. Infant mortality (per 1.000 live births) 146 103 82 Child malnutrition (% of children under 5) 44 Access to improved water source Access to an improved water source (% ofpopulation) 28 58 75 35 39 Illiteracy (% ofpopulation age 15+) w- Gross primary enrollment (% of SchOOl-age population) 87 92 Sierra Leone Male 94 99 Low-income group Female 80 85 KEY ECONOMIC RATIOS and LONG-TERM TRENDS ** 1984 1994 2003 2004 1 Economlc ratlos' GDP (US$ billions) 1.09 0.99 0.99 1.08 Gross domestic investmenVGDP 12.7 7.8 14.3 19.6 Trade Exports of goods and servicesiGDP 10.6 27.1 19.9 22.9
Gross domestic savingsIGDP 10.9 11.3 -7.0 2.8 T Gross national savingslGDP 9.7 2.5 6.7 14.7 Current account ba ia nce/G D P -4.7 -5.3 -7.6 -4.9 Domestic investment Interest paymentsiGDP 0.5 2.0 1.8 1.6 savings Total debt/GDP 56.6 150.2 162.9 144.7 Total debt servicelaxports 24.8 59.4 46.6 36.0 Present value of debtlGDP Present value of debtiexports I Indebtedness 1984-94 1994.04 2003 2004 2004-08 (average annual growth) GDP -3.9 3.0 9.3 7.4 6.8 Sierra Leone GDP per capita -6.1 0.9 7.0 5.2 4.7 Low-income or000 Exports of goods and services -0.6
STRUCTURE of the ECONOMY 1984 1994 2003 2004 Growth of Investment and GDP (Oh) (% of GDP) 1 Agriculture 62.0 37.7 Industry 18.9 25.5 Manufacturlng 6.0 5.5 Services 19.1 36.8 Private consumption 82.1 78.5 91.4 88.3 General government ConSUmptiOn 6.9 10.2 15.6 13.2 Imports of goods and services 12.4 23.5 41.2 39.1
1984-94 1994-04 2003 2004 1 Growth of exports and Imports (Oh) (average annual realgrowth) 1 Agriculture -4.0 Industry 5.8 Manufacturing Services -4.0 :T Private consumption -4.8 7.6 8.1 5.3 General government consumption -3.2 4.8 -7.6 88 00 01 02 03 Gross domestic investment 53.9 -"-Exports -Imports Imports of goods and services 0.6
Note: 2004 data are preliminary estimates. Group data are for 2003. * The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be incomplete. ** GDP shares prior to 2001 are not comparable to shares thereafter due to a structural data break.
83 Sierra Leone
PRICES and GOVERNMENT FINANCE 1984 1994 2003 2004 Inflation (Oh) Domestic prlces 1 40 (% change) Consumer prices 66.7 24.2 7.5 14.2 30 implicit GDP deflator 36.2 8.3 15.9 20 10 Government finance /% of GDP, includes current grants) 0 Current revenue 11.8 20.1 21.3 -10 Current budget balance -1.7 -2.0 1.1 1 -GDPdeflator -CPI I Overall surpius/deficit -5.5 -6.8 -3.5
TRADE I984 1994 2003 2004 Export and Import levels (US$ mill.) (US$ millions) Total exports (fob) 126.6 194.1 138.0 174.5 350 Diamonds (inci. unrecorded exports) 126.2 158.3 300 Other 11.9 16.1 250 200 Total imports (cif) 150 Food 100 Fuel and energy 50 Capital goods 0 98 99 00 01 02 03 04 Export price index (1995=100) Import price index (1995=100) B! Exports rn Imports Terms of trade (1995=100)
BALANCE of PAYMENTS 1984 1994 2003 2004 Current account balance to GDP (%) (US$ millions) Exports of goods and services 177.3 269.1 197.3 246.3 0 Imports of goods and services 215.2 233.9 408.3 420.6 2 Resource balance -37.9 35.2 -211.1 -174.3 4 6 Net income -29.8 -1 13.6 -27.1 -27.6 6 Net current transfers 16.7 25.5 163.0 150.7 -1 0 Current account balance -51 .O -52.9 -75.1 -51.2 -12 -1 4 Financing items (net) 25.0 52.4 64.9 98.6 -16 Changes in net reserves 25.9 0.5 10.2 -47.4 Memo: Reserves including gold /US$ millions) 7.7 40.6 59.4 124.9 Conversion rate (DEC, local/US$) 2.51 586.7 2,348 2,691
EXTERNAL DEBT and RESOURCE FLOWS 1984 1994 2003 2004 (US$ millions) Composition of 2004 debt (US$ mlll.) Total debt outstanding and disbursed 616 1,492 1,612 1,556 IBRD 3 0 0 a F: 6G: 30 IDA 47 186 584 534 Total debt service due (before relief) 44 160 95 92 iBRD 2 0 0 0 IDA 0 2 8 10 Composition of net resource flows Official grants 21 72 83 101 Official creditors 10 47 25 -10 Private creditors -3 0 87 100 Foreign direct investment -4 -3 21 13 Portfolio equity 0 0 0 0 World Bank program Commitments 21 0 105 60 A - IBRD E - Bilateral Disbursements 6 38 27 38 B .IDA D. Other muitilateral F .Private Principal repayments 1 1 5 7 C ~ iMF G. Short-term Net flows 5 37 22 31 Interest payments 1 1 3 3 Net transfers 4 35 19 28
Development Economics, iMF and staff estimates. 4/27/05
84 Annex 15
REPUBLIC OF SIERRA LEONE: Infrastructure Development Project
Sierra Leone, WFP/UNDP Accessibility and Food Insecurity Ratings by District with the respective Donor commitments to RuraVFeeder Roads per District
Yo of RuraVFeeder Road Comi itments & *DBi'lam Accessibility Population IDA 1 IDA 1 EU Islamic Districts Rating Chronically IDP Dev.
~ ~ Food- ~ NFS Bank 1 Insecure I 1
* 1 Source of Accessibility Rating and % Population Chronically Food Insecure: Food Security Strategy for Sierra Leone, Ministry ofAgriculture, Forestry and Food Security, September 2004 (as drafted by World Food Program for UNDP).
*2 The 3 Districts shown in respect of the Infrastructure Development Project (IDP) are currently proposed primarily on the basis ofcomplementing NaCSA community access initiatives, with a view to also targeting Agricultural Development access requirements in the same districts, while recognizing the existing commitments of other donors to the various districts.
*3 Commitments shown in parenthesis are not yet confirmed.
85 Annex 16
REPUBLIC OF SIERRA LEONE: Letter of Sector Policy
Ministry of Finance Ministerial Building George Street FREETOWN Sierra Leone
2gth October, 2005 MI Paul Wolfowit;., President World Bank 1818 1-1 Street N. W Washington DC 20433 USA
Dcar Mr Wolfowitz
Sierra Leone: Letter of Sector Policy
Irefer to an earlier letter dated 1l* July 2005 on the above matter and to inform you that following discussions with the Bank from the 24'h - 26'h October 2005 in Washington, it was decided to amend the Sector Policy referred to above. Please find the following as the amcnded Lekr of Sector Policy which Itrust will be acceptablc to the Rank.
Sicrra Leone has succcssfiily completed the post conflict cmergency phase and is now poised to move to sustainable development aid poverty reduction in the medium term to long term. However, poverty remains pervasive and dccp-seated. To address the high incidence of poverty and its undcrlying causes, Sierra Leone has prepared a conpehensive POV~~Yieducth stmem-.
Sierra Leone's Yovcrty Reduction Strategy Paper (PRSP, Dectmber 2004) is foundcd on three pillars: (i)promoting good governance, sccuxity and peace; (5) promoting pro-poor sustainable growth for food security and job creation; and (iii) promoting human development. -fie Government's pro-poor growth strategy focuses on putting to use under-utilized capacity in the agricultural and mining sectors, expansion in m'nnfacturing and services sectors and rehabilitation and majntenance of thc cssential infrastructure, which is recognized as the essential enabling environmcnt lor all these sectors. Growth in qricultiual production is strongly oriented toward accessibility to
'86 lood, markets and development. Thcsc developments are also expected to address the necd for the generation or employment.
Tke PRSP recognizes the irnportancc of accessibility and transport infrastructure for achieving the above goals and accordin& calls Tor effective and coordinated linkages among the productive sectors (principally agricultural and fisheries); the infrastructure sectors (roads and h-ansportation) and the social sectors (health, nutrition, water, ssmitatioii and education). The Food Security Strategy for Sierra Leone (September 2004) also idcntifies poor road access as a “key factor inhibiting marketing of food’’ and specifics “improvement of both major and farm access roads” as a necessary strategic measure to achieve lhe Prcsident’s pledge that “no Sierra Leonean should go to bed hungry”.
Primary and fccdcr road development are therefore among the PEtSP Poveny Reduction Zndicators for Pillar # 2. In addition, divestiture and privatization in transport and shipping sectors fomi part of the PRSP strategy for redefining the role of government in tlic cconomy and creating opportunities for private sector development.
In July 2002, thc Government adoptcd a National Transport Strategy and Investment Plan 2003-2007 (SLNTP), which establishes priorities for iminediate and longer term investments and lays out key sector policy reforms and stratcgies. The SLNTP identitics the necd to target three overall Emsport sector outcomes: (i)ensiring acccss for the populatioii to services, markets and revenue-generating opportunities; (ii)lowering transport costs; and (E) increasing cfficiency in tlie deliveu of transpod services. To achieve these outcomes, the Strategy lays out iivc basic principles for its implementation:
Planning of transpofl services to directly serve the country’s povcrty reduction strategy program. e Continued strengthening of the public sector in its revised role as planner, supcnisor and replator of the transport systcm. 0 Continued strengthening of the private sector to carry out an increasing share of engineering, construction and transport services. Continued emphasis on network planning, prograniming and sustainnbk maintenance. 0 Targcting of donor resources for road reliabilitation on the life line [or core] road network, with continued emphasis on sustainable and transparent inaintenance and management systems. 0 Establishing sustainable fmancing for maintenance and management of the road network.
This Letter ofSector Policy summarjzes the Government’s specific policies and measures to implement thz abow strategy, with particular reference to sector rnanagemcnt issues for the Road Network, thc Port OP Freetown and Frectown International Airport. This is based on the SLN’I’Y and further policy analyses concerning sector management and su stainnhlt development.
87 Road Network Rod Sector Policy Issues
The official public road network of Sierra Leone totals about 1l,OOOkm, oT which some 8,OOOkm are classified in heNational Road System (NRS) with the remaining 3,OOOh made up of local networks and unclassified roads and tracks. About half the NRS (4,OOOkrn) are tertiary/feeder roads, while the other half is divided between secondary roads (1.9OOkm) and primary roads (2,lOOh).
Management of all public roads in Sierra Leone has bcen the responsibility of the Sierra Leon: Roads Authority (SLRA), since its creation by an Act of Parliament in 1992. The Act makes provision for SLRA to delegate its responsibilities for certain roads to local government bodies. Maintenancc of the road network is (to the extent funds allow), financed through a Road Fund, whose receipts come from a uscr levy attached to the price of fuel and fees collectcd by the Sierra Leone Road Transport Authority (SLRTA) for vehicle and driver Licensing and registration. Ln addition, some funding for maintenance is received from donor agencies. However, the bulk of donor funding goes for developmcnt work (rehabilitation, reconstruction, 2nd upgrading ofroads).
In the recenr post-war emergency era (May 2001 - Present), thc Sierra Leone Roads Authority (SLFL4) has been under constant pressure to use pa? of the Road Fund resources for “eiiiergcnc~works (works related to the opening up of mal roads to enable displaccd persons return to their communities for resettlement) -which has made it vh-tually impossible to fully implement the annual maintenance programme.
Considering the deplorable state or the road network Iiftcr more than ten years of total ncglec5 there was bound to be an‘ increasing demand for emergency ~70rks,especially during the immediate post wuperiod, as a result of the zcule national need to provide acccsses to long abandoncd communities, and to facilitate the relocation of displaced persons. Once this emergency need hos been gradually addressed over thc years, the pcrcentage ofemergency works has dso considerable reduccd.
Although the Govenmient would have wishcd to take up the payment of the Authority’s salaries and othcr rccurrent costs as stipulated in the SLRA Act of 1992, this has not been possible over the years due to the other competing national needs as against Govcrment’s limited resouuccs. As a result, the Road Fund bas remained the only major source of locai hiding available to the -4uthority. To date therefore up to 30% of the Road Fund financcs is used to pay SLRA’s and SLRTA’s salaries and adminimative costs. The administrative costs covered by SLRA are directly and necessarily related to managing tlie national road network. SLRA also manages all donor-funded road works. Thc payment of salaries and administrative costs from the Road Fund finances is bound to dlect the lcvcl ofmaintenance activities that could be undertaken from ths Fund, The situation is made even worse by the fact that the level of thc Road Fund is inadequate to rnect maintenance requirements. The recommended solution to thc problcm therefore is for Goveniment io progressivcly increase the level of thc Road Fund levy to adequdlely cover rull routine and periodic mhlenancc requirements for the core road nctwork
88 (3,OOOh). The admiisnative cost of both SLRA 2nd SLRT.4 Bill be capped at the June 2005 absoli~tefigures and progressively reduced to 15% by the end of the next five ycm.
Government is committed lo privatizing the Mcchanical Services Unit (MSU), the principal cquipment rental company in the country. In this respect, thc WSP Consultant has set up to map out the road to privatization of the MSU, recommending 2008 as thc most convenient date for the piivatization of the. Unit. The Consultants, N;RZCON, have also shared the same vicw in their revised privatization strategy for MSU. It is however worth noting that the MSU, though not privatized, is presently operating as a commercial entity. Its organization, management, and operations especially as of December 2003 havc been functioning dong purely commercial lines. ’ The priiicipal problem however, lies with the fact that the ST,RA, its principal cliznt is under-funded and not able to fdly service its accrued debt to MSU (debts for equipment used before Dcczmber 2003). In retrospect, more majntenancc works have been carried out c11m funds available, hence the big11 levcl of accrued dcbt to the MSU. The solution to thc problem is lo limit the activities of SLRA within the funds available. This year, the SLRA has achieved its goal of becoming a planning and inanagement entity since it ha increased contract work to private entcrprise to 95% average for the ycar so far. It should be noted that thc SLRA in the last 16 monlhs has functioned within its budget and has not increased its level of debt to the MSU in This period.
Poky and Strategic Measures
The Government recognizes that the existing institutional framework is not adequately financed to sustain thc road network. Accordingly, the Government will carry out the following restructuring measures uiider auspices of the National Commksion for Privatisation (S;CP). (0 Thc present Road Fund would bc separated by legislation horn SLRA and replaced by a ncw Independent Road Maintenance Fund (IRMI;), with an independent Board and Road User Represcntation. The IRMF‘s sole mandate will be lo fund, through user fees, programmed periodic and routine road maintenance, based on technically justified prioritized annual programmed mainteiiance plans as detennincd by SLRA.
(iij The fuel lev will be progressively increased to adequately cover the full routine and periodic maintenance requirements of thc base case core road network maintenance needs of approximately 3,OOOh, starting with 1,500km in 2006.
jiii) Given that the RMF resources are to be used only programmed mninteiydnce, the Government will directly fund all ernergmcy maintenance and / or any other iritervcntions on other portions of the road network not covered by the IRhll;.
(W SLRPl’s salaries and addministrittivc costs directly and ncccssarily related to maintaining the core road network would continue to be met fiorn thc Road Fund considering Government’s commiment and current financial
89 constraints. However, SLRn operating costs associated with DeveIopment and emergency inaiiitenance or other interventions would be inet &rough donor support (management fees), ador Government Budget as the casc might be.
(4 In ordcr to optimize road maintenance funds available for acrid maintenance, SLLU.4 will directly reniit till revenues to the IRhIIF.
(vi) In order to address the difficulties in establishing the Mechanical Services Unit (IvlSU) as a commercial cntity in support of developnient orthe domestic construction industry, the MSU wiIl be separated from the SLRA and will be independently managed and run as a purely commercial entity. Legislation will be prepared and passcd to this effect. Prior to belcgislatioion; a transitional arrangement will be put in place by the National Commission for Privaiization to secure the independence of MSU.
(vii) In addition, in order that thc newly commercidiscd MSU may commence its operations on a sound basis, Government will make good the SIX4 rental arrears due to MS U, by paying 20% per aium over a period of fivc (5) yeas commencing 2006 lo allow for the procurerncnt of spare parts and materials, etc.
(Viii) SLRA hi11 actively explore new design spccification concepts for the feedcr roads, ainied at minimizing maintenance demands; incliiding use of materials (such as Telford base) suited to labor- based maintenancc.
Port of Freetown
Fort Sector Policy Issues
The Port of Freetown is thc principal comercial port in the country and Ihe most imporLCantgatcway for trade and coinmerce of Sierra Leone. I1 is managed by the Sierra Lcone Ports Authority (SLPA), a semi-autonomous cntcrprise, itself managing and implementing all operational aspects of the pori buincss. Following the period of civil unrest, basic operations at the Port of Freetown were restored though physical invesbents in port infrasuucture and equipmcnt, as well as jnstitutional support in thc privatizatiorddelinking of non-core activities as a precursor to moving towxd a landlord port model in the interest ofgrcatcr efficiency.
Traffic has iiiiproved in recent ycars, but the SLPA has been plagued by scveral overstaffing, low productivity inefficient operations, insrsficient inriintcnance, poor financial management and uicompctitive costs.
Under NCP oversigh5 tbe port's slipway is in the process of being sold off and the ferry seivices are being concessioned. Spurred by the President's June 2004 address (which expressed disappointment with port performance and called for accelerated reform) thc Governlent has embarked on a concerted program to tronsfimn the port to full landlord status, in which most or all cargo nperdons will be carried out by the private scctor. In this context, a new General Manager was recruited from the Gkuia Ports and Harbours
90 Authority (GPHA) in March 2005 to achieve a clear break with past practices and to introduce fresh management perspectives founded on the Ghana landlord purl model. The Ghana Ports Authority are also providing TA management support whiIe the World Bank is supporting Thfor the conversion process to a Iandlord port.
Policy and Strategic Measures
Thc Govenlment is now fully committed to conversion of the FreetomPort to a landlord port. To this end, it will impleineut the following, under the auspices ofthc Fa.tinnal Coinmission ofPrivatization (PEP):
(i) Complete the de-hking kansactions for two ‘‘non-c~re’’ activities, i.c. the sale ofthe port’s slipway ‘and the conscssioning ofthe ferry services. (iij Implement Lha agreed Action Plan as rc-commended by the Sierra Leon: Ports Authonry Institutional Study for the convcrsion of the SLYA to a landlord port. This will involve the following components: a. AU preparatory activities leading to tlic concessioning of the container termjnal and issuing of licenses for the service providers for non- containcr (break-bulk aud bulk handling) cargo: b. The restructuring of the SLPA, which will includc:
i. Effecting amendments to the legal, organizational and hancial responsibilities of SLP-4 in its conversion to a landlord port, including the redcfiuirion of the economic aid technical regulatory responsibilities and powers to monitor thc performance of the contracts for the concession aod the service provider licensees, concluding with the establishment of SLPA as a Landlord Port together with the concessioning and licensing ofcargo handling; ii. Implement staff redundancies and severance and rctaining arrangements; and iii. Implement estate dcvelopment and sale of assets to generate cash income. The agreed Action Plan will be camed out over a nine 9-12 month period under the auspices of the National Commission fox Privatization VCP) through a dedicated Project Management Committee (PPMC) Wjth its own Technics1 Secretariat, housed at thc SLPA.
(iii) Government also acccpts that further investment in tlie Freetomport infrastructure should be linked to the conccssioniiig ofthe container terminal.
Freetown International Airporl
Airport Sector Policy Issues
Freetown International Airport is Sierra Leone‘s only gateway airport. The Sierra Leone Airports Aurhoiity (SLAA) has a well-established and competent management structure and staff.
However, the solvency of SLAA as a hmcially self sustaining entity has recenlly been compromise by Government‘s waiver of all Airport Charges relating to UNAMSIL’s air-
’ 911 - -. operations. Due to crippling debts owed by Sierra National Airlines (SNA) which cmics out ground and cargo bandling activities on a conccssion basis a further burden is placed on SLA4's solvency.
Policy and Strategic Measures:-
(1) The Government recognizes the importance to maintain the independence 2nd solvency of SLAA as n financially self-sustaining entity. Therefore the Government will ensure that SL,AA takes over thc ground and cargo handling activity from SYA not later than December 2005.
(ii)IC is cnvisaged that restoration, maintenance and management of hedomestic non-international airports and service will be undcrtaken directly through Public @e. Government) Private Partnership.
Sincerely yours, \ John%- 0. B jamin Ministcr of Sierra Leone
Cc: Mr Mathias Shamenyi Executive Director Wor!d Bank Fa>r NO.00-1 202-522-1 549
Mats Karlrson Country Director, Sierra Leone
92
MAP SECTION
IBRD 34148 SIERRA LEONE INFRASTRUCTURE DEVELOPMENT PROJECT WORLD BANK FUNDED PROJECT PROJECT PRIMARY ROAD REHABILITATION
PROJECT PORT AND AIRPORT REHABILITATION RIVERS
SELECTED DISTRICTS FOR PROJECT FEEDER SELECTED CITIES AND TOWNS ROAD REHABILITATION PRIMARY ROADS, PAVED DISTRICT CAPITALS PRIMARY ROADS, GRAVEL NATIONAL CAPITAL SECONDARY ROADS, PAVED DISTRICT BOUNDARIES SECONDARY ROADS, GRAVEL FEEDER ROADS INTERNATIONAL BOUNDARIES
13° 12° 11° GUINEA 10° 10° Gbentu Fulamansa Kaliere Sirekude Medina Dula Falaba Limbaya R. Fondokhuri Yana Bafodia Fintonia Dogoloya Mayototo Sakuta Karasa Dankawali Sandikoro Kabala Scarcies GUINEA Serekolia Maybunyele Matui Makakura Konta Koinadugu Kamakwie Bendugu Kaifuna Laia Kamalu KOINADUGU Great Sabuya Mabala Warakasona Firawa Kamaron Jct. Mahera Fadugu Maboto Kamaranka Yisaia Jct. R. Madina Jct. BOMBALI Banda Bumbunkoro Mabanda Masaktaba Karafaia Sumbuya Makaranki Kurubonla Bure Karina Jct. Alikalia Karina Porpon KAMBIA Sendugu Kamabai Yifin Scarcies Pendembu Kambia Bumbuna Sendugu Batkanu Kalangba Bendugu Mapotolon Rokupr Fasongia 9° Kotolon 9° Gbinti Binkolo Basaiya Kychom Koya Little Worodu Manbolo Makeni Gbeaia Kayima Barlo Wharf Barmoi Mabole Sumbaria Kagbulo Katoma Kamasundu Saiama Moria Kalmaro Kawbana Port Foredugu Konokridee Loko Manewa Magburaka Waidu KONO Wadu Lunsar Maramba Petifu Lungi Loi Masingbe Sefadu Mara Jagbwema Lungi Jct.PORT LOKOR. Masimera Matotoka Rokel Kainkordu Pepel Mayda TONKOLILI Woama R. Laia FREETOWN Tagrin Masiaka Masere Magbolo Petifu Jct. Njaiama- Mondema Sewafe Yonibana Mafurabi Gandorhun Magbuntoso Tokbombu Koindu Hastings Makonkari Tungie Songo Yele Romagbut Fuendu
WESTERN Mongeri Meli Waterloo Buedu AREA F.R. Bradford Gendema Dagbahun Gamgbama Geima Kailahun Kent Rotifunk Panguma KAILAHUN Suen Taiama Boajibu Bunumbu Moyamba Baiima Dodo R. Senehur Galu Yenkisa Dambara Pendembu Kangahun Mano Lago MOYAMBA BO Daru 8° Gbangbatoke 8° Junction Tabe Bo Yamandu KENEMA Pampano Levuma Segwemba Shenge Sembahun Ngathun Gerihun Blama Tikonko Yogbofo Taninahun Kenema Jojoima Serabu Jolomei Gbangbatok Bamba Jct. Giema Mandu Gbonko Tisana Jabama LIBERIA Nitti Yenkisa Koribundu Sendumei R. Sumbuya Nyandehun Joru Momalig Jimi Bathurst Matru Gegbwema Bonthe Gambia Bendu Seniehun Potoru Tormabum Gorahun BONTHE R. Hogai Pujehun Kouma Sewa Moa ATLANTIC OCEAN Gbundapi Mano R. SIERRA PUJEHUN Zimmi LEONE 0 50 KILOMETERS Kalu Sumbuya Fairo This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any Dibia 7° judgment on the legal status of any territory, or any endorsement or Sulima acceptance of such boundaries. 13° 12° 11° AUGUST 2005 IBRD 34149 SIERRA LEONE INFRASTRUCTURE DEVELOPMENT PROJECT ROAD NETWORK - DONOR COMMITMENTS
PROJECT PRIMARY ROAD REHABILITATION PROJECT PORT AND AIRPORT REHABILITATION RIVERS SELECTED DISTRICTS FOR PROJECT FEEDER PRIMARY ROADS, PAVED ROAD REHABILITATION BY W.B. SELECTED CITIES AND TOWNS PRIMARY ROADS, GRAVEL SELECTED DISTRICTS FOR PROJECT FEEDER DISTRICT CAPITALS ROAD REHABILITATION BY E.U. SECONDARY ROADS, PAVED ROAD WORKS FUNDED BY: NATIONAL CAPITAL SECONDARY ROADS, GRAVEL WORLD BANK DISTRICT BOUNDARIES EUROPEAN UNION FEEDER ROADS INTERNATIONAL BOUNDARIES KUWAIT FUND/BADEA/OPEC
13° 12° 11° GUINEA 10° 10° Gbentu Fulamansa Kaliere Sirekude Medina Dula Falaba Limbaya R. Fondokhuri Yana Bafodia Fintonia Dogoloya Mayototo Sakuta Karasa Dankawali Sandikoro Kabala Scarcies GUINEA Serekolia Maybunyele Matui Makakura Konta Koinadugu Kamakwie Bendugu Kaifuna Laia Kamalu KOINADUGU Great SabuyaMabala Warakasona Firawa Kamaron Jct. Mahera Fadugu Maboto Kamaranka Yisaia Jct. R. Madina Jct. BOMBALI Banda Bumbunkoro Mabanda Masaktaba Karafaia Sumbuya Makaranki Kurubonla Bure Karina Jct. Alikalia Karina Porpon KAMBIA Sendugu Kamabai Yifin Scarcies Pendembu Kambia Bumbuna Sendugu Batkanu Kalangba Bendugu Mapotolon Rokupr Fasongia 9° Kotolon 9° Gbinti Binkolo Basaiya Kychom Koya Little Worodu Manbolo Makeni Gbeaia Kayima Barlo Wharf Barmoi Mabole Sumbaria Kagbulo Katoma Kamasundu Saiama Moria Kalmaro Kawbana Port Foredugu Konokridee Manewa Magburaka Waidu KONO Wadu Loko Maramba Petifu Lungi Loi Lunsar Masingbe Sefadu Mara Jagbwema Lungi Jct.PORT LOKO R. Masimera Matotoka Rokel Kainkordu Pepel Mayda TONKOLILI Woama R. FREETOWN Tagrin Laia Masiaka Masere Magbolo Petifu Jct. Njaiama- Mondema Sewafe Yonibana Mafurabi Gandorhun Magbuntoso Tokbombu Koindu Hastings Makonkari Tungie Songo Yele Romagbut Fuendu
WESTERN Mongeri Meli Waterloo Buedu AREA F.R. Bradford Gendema Dagbahun Gamgbama Geima Kailahun Kent Rotifunk Panguma KAILAHUN Suen Taiama Boajibu Bunumbu Moyamba Baiima Dodo R. Senehur Galu Yenkisa Dambara Pendembu Kangahun Mano Lago MOYAMBA BO Daru 8° Gbangbatoke 8° Junction Tabe Bo Yamandu KENEMA Pampano Segwemba Levuma Shenge Sembahun Ngathun Gerihun Blama Tikonko Yogbofo Taninahun Kenema Jojoima Serabu Jolomei Gbangbatok Bamba Jct. Giema Mandu Gbonko Tisana Jabama LIBERIA Nitti Yenkisa Koribundu Sendumei R. Sumbuya Nyandehun Joru Momalig Jimi Bathurst Matru Gegbwema Bonthe Gambia Bendu Seniehun Potoru Tormabum Gorahun BONTHE R. Hogai Pujehun Kouma Sewa Moa SIERRA ATLANTIC OCEAN Gbundapi Mano R. PUJEHUN Zimmi LEONE 0 50 KILOMETERS Kalu Sumbuya Fairo This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any Dibia 7° judgment on the legal status of any territory, or any endorsement or Sulima acceptance of such boundaries. 13° 12° 11° AUGUST 2005