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World Bank Document Docwnentof The World Bank FOROFFICIAL USE ONLY &R0C7- c2> Public Disclosure Authorized Report No. P-4977-CD REPORTAND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONALDEVELOPMENT ASSOCIATION TO THE Public Disclosure Authorized EXECUTIVEDIRECTORS ON A PROPOSEDDEVELOPMENT CREDIT OF SDR 45.4 MILLION TO THE REPUBLIC OF CHAD FOR A TRANSPORTSECTOR ADJUSTMENT/INVESTMENT PROJECT Public Disclosure Authorized MARCH-30, 1989 Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Currency Equivalents Currency Unit CFA Franc US$ 1 CFAF 300 CFAF 1 US$ 0.003 CFAF 1 million - US$ 3.333 FISCAL YEAR January 1 - December 31 SYSTEM OF WEIGHTS AND MEASURES:METRIC 1 meter (m) - 3.28 feet (ft) 1 kilometer (km) m 0.62 mile (mi) 2 2 1 square kilometer (km ) = 0.39 square mile (mi) 1 metric ton (t) - 2.205 pounds (lbs) ABBRFVIATIONSAND ACRONYMS AfDF African Development Fund BEAC Banque des Etats d'AfriqueCentrale BDEAC Banque de Developpement des Etats de l'Afrique Centrale BNF Bureau National de Fret BTCD Banque Tchadienne de Credit et de Developpement CCCE Caisse Centrale de CooperationEconomique (FrenchAid Agency) CFAF Franc of the African Monetary Union COTONTCHAD Societe Cotonniare du Tchad CTT Cooperativedes Transporteurs Tchadiens DAC Direction de l'AviationCivile DEP/MTAC Direction des Etudes et de la Planificationdu MTAC DGTAC DirectionGenerale des Transportset de l'AviationCivile DGTP Direction Generale des TravauxPublics DRTP DelegationRegionale des Travaux Publics DTP Direction des Travaux Publics DTS Direction des Transportsde Surface EDF/FED European DevelopmentFund/Fonds Europeen de Developpement FAC Fonds d'Aide et de Cooperation (French Aid Agency) FRC Financial Rehabilitation Credit KFW Kreditandstalt Fur Wiederaufbau(German Bilateral Aid Agency) LNBTP Laboratoire National du Batiment et des Travaux Publics MTP Ministere des Travaux Publics MTAC Ministere des Transports et de l'AviationCivile OFNAR Office National des Routes RFA RepubliqueFedersle d'Allemagne SONASUT Societe Nationale Sucriare STEE Societe Tchadiennsd'Electricite UNDP United Nations DevelopmentProgram USAID U.S. Agency for InternationalDevelopment FOROMCUL USE ONLY REPUBLIC OF CHAD TRANSPORTSECTOR ADJUSTMENTIINVESTMENT PROJECT TABLE OF CONTENTS Pase No. DOCUMENTS IN THE PROJECT FILE CREDIT AND PROGRAM SUMNARY I. THE ECONOMYAND THE ADJUSTHENTPROGRAM . 1 A. Background . .. 1 B. Recent EconomicDevelopments . 2 C. MacroeconomicPolicy Issues * ......... a..................4 D. Macroeconomicand Sectoral Adjustment Programs . 5 II. MAINISSUES IN THE TRANSPORTSECTOF; . 7 A. The TransportSector ................... 7 B. High TransportCosts .......................... 9 C. High TransportPriceso8 * - * .. - -. v . -- 10 III. THE TRANSPORT SECTOR ADJUSTHENTIINVESTErNTPROGRAM . 11 A. Rehabilitationof the PriorityRoad Network . 12 B. ImprovedResonrce Mobilizationand Allocationin the Transport Sector .... .. .. .. .. .. .. ... .. 13 C. Liberalizationof the Road TransportIndustry . 15 D. IlcreasedRole of the Private Sector in the Road ConstructionIndustry ...... .. 17 E. Improvingthe Public Managementof the TransportSector . 18 F. The TransportSector Adjustment/InvestmentStrategy in the Context of the OngoingMacroeconomic Adjustment Program ... ... ...o. o . .. ......... 20 IV. THE PROPOSED PROJECT.. .. ... .. ....... ..... 22 A. Project Objectives .... .. .............. 22 B. Project Description.... ............ 22 C. The Road Maintenanceand RehabilitationErogram .' ..... 23 D. Air TransportInfrastructure Rehabilitation . 23 E. InstitutionalStrengthening . .. 23 F. ProjectCost and Financing . ...... ......... 24 G. Project Implementation . ...... ............ 27 He Procurement.*. ... .. .. .. .. 28 I. Disbursementsand Tranche Release . 31 J. Reportingard Auditing . .............. .. 33 K. Project Justification.................. ....... a....... 33 V. BANK GROUP OPERATIONSIN CHAD ..................... a.......... 35 VI. COLLABORATIONWITHTHEINF . 38 VII. AGREEMENTSREACHED AND RECOMMENDkTIONS. ..a. 38 This documenthas a restrictoddistribution and may be used by recipientsonly in theperfomance of their officialduties. Its contents may not otherwisebe disclosedwithout World Bank authoration. Annex l:KeyM croeconomicIndicators, Balance of Payments, Statusof Bank Operations Anne" 2iDetailed Cost Kstimate Annex 3:Disbursement Schedule Annex 4sProject Implementation Schedule Annex 5a Statementof TransportSector Policy (with attachments 5-1, 5-2, 5-3, 5-4) Annex 6sMatrixof SectorPolicies, Issues and Actionsto be Implemented Annex 7:ChadRoad ConstructionDesign Norms Chart 1tOrganigramme dii Ministere des Travaux Publics Chart 2: Organigrame du Ministere des Transports et de l'Aviation Civile Chart 3: Organigraue de la Direction Ginirale de l'OFNAR SiP IBRD 21338 REIUIIC Ot-CRAD DOCUMNTS I11TU l!RlOJCT FILEC in~UR ~ ~ to Fll- Ret. No. beest Title slt_ I. ProjectProceenas 1. Projoed'Aju.temnt Sectoriel de- Transpor Correspoadenceby dat. Mistson de Pr"valuatlon, Aldeb-Mmolre. Transport Stor Adjustmnt Credit, Initiating Memorandum,July 5, 1086. 2. Projet d'Ajustemsnt Seatoriel doe Transports, Corr._poadae by dat Atde-1Mmolredo laMission d'Evtluatlon (14 tu 22 Novembre198B). Appraisal Misslon, Back-to-OfficeReport, Decombr 6, 1t80. X. SectorC sakaround 1. Preparotionof TransportSector Project, Preliminary 0-28568 Study of Rural Roads In the Southeast Chad,a ftnal rport, Coluenconsult GM. 2. Projet Sactoriel des Transports, Etude 0-28S 9 Pr6llminalre do Routes Rurloa dane Is Sud-EUt du Tohd, Etud Econemique. 8. Chad Strengthening RoadMaintenano ProJoct, 0-2860 by USAI, June 24. 198. 4. Prormo do Rabilltatilon at d'Entretien Routior D-2801 (108601), Rapport 0Ara Is, SCEWO,AeSt 18$. 5. Program doRbabi tiltation eb d'Entetlen 0-289 Routler (198641), Annexee,do rapport i-deslue, BCIt, AOt 1086. S. Note our lee Penn de Organlsation* Intern- D-28 tiontless PIW, PAM,CARE TCNAD, FAO. 7. tloglestic our I lndustrie, de Traporot Routiere 0-286M c*uTohad, SEDES,Jul lot 1977. 8. Etude do Recouvremet de Coots d'Entr4tien Routler, 0-28505 Rapport d*ActIvItA, Louis Berger lntenationl, Inc., Jenwler 108. 9. RNunlonde Sulvl d lo TableRondo de Cenave 0-285 do DOoebro 1985. Secteur dee Trensporte, Volume1, Pr6sentatlon de le Strat6gle et do Progr_medo 06volopp_ment,FUrler 1986. 10. RAunlondo Sulvido Is TableRondo doe nwve 0-28969 do O6enbro 186. Secteur des Traneports, Volume2, PrAcentationdo la Strat,ie*t du Program do 06veopp_ent,Annexes, FPvrier 1068. - ii. - ProjecbFile C.de/ Rot. No. Docuent Title auk DOceNentN. 11. O llun d l'Ot Ticedo Carrireseb ConstItution 0-285 do IsSocl6t d'Exploitatton des Carrlros do Tkend, Rapport Provisoire,SECAT, More 1988. 12. Milstre de Transport. et do IA"iation Clvillo D-23698 Etud do I'Industri. doo Transports, Rapport Final, SCEOM,Avril 198. 18. Pr6valuxtion du Projet Sctorieldes Transport.. 0-28599 Prootion des Petite.ot Moyonne Entreprles do Travaux Routlern, Rapport do Mission,Hugues Casaing,Juin 1988. 14. Etudede R6organlsatlon de lOffice Natlonal D-28690 des Routes, Volume1: Manueld'Organlation do l'OFNAR,Louis Berger International Inc., Juillet 1988. 15. Etude do Rdorganisation do 'Office Notional D-28608 des Routes, Volume2: Plan de Formation, Louis BergerInternational Inc., Juillet 1988. 16. Etudedo R4organtstiondo I"Offlce National D-2BB00 dos Routes,Volume 8: Plan do R6orgsniation, LouisBerger International, Inc., Juillet 1088. 17. R6orgsnisationdu Systbm Comptabledo I'Offlc 0-28691 Nationaldes Routesdu Tchad,(OFNAR), Fiduclalredo to Tour,Juillot 1988. 18. Plando Formtion,Volume 1, Rapport,BCEOM, 0-28002 Octobre1988. 19. Plando Formation,Volume 2, AnnexMs,BCEOJ, 0-2868J Oatobre1998. 20. Etud d'Organieationdu Ministhredes Travaux 0-23808 PubiIco, Volum 1, rapport, BCEON,Octobre 1988. 21. Etude d'Orgpntn tton do MinistAre des Travaux 0-28680 Pubi c, Volume2, Annexes, BCEON, utobre 198. 22. Audit Financier do In CoopOrative des Transporteuru 0-23se4 Tchadiene, Fiducistre de le Tour, 0Dcembre1988. 23. Mission D'Assistance Technique, Etud du ConsetI D-28695 des Chargeurs du Tchnd et du Projt do Zone Tchadiennoon Zone WEACa Douanl, Louis Borger International, Inc., Janvier 1989 24. Cr6ation du Bureu National do Fr8t 0-24092 Rapport AFT du 10 f4vrier 1989. 25. grant agrement for the strengthening 0-23886 of the road maintenanceproject, USAID,June 28, 1985. Rof.~~~ ~~~~~ Oco No. Ret. N.. ecsmu~~~~~~~tTitle *gJgbFil Code/ ftf. me. oeemonat ritio OWk ~~~~~DOCusAMtNO. 26. Finalroport on the *valuntion Studs: 0-2BMG strengthening road malnt nnc project in Chad (English & French, texts) PnreonsBrinch*rhoff, May 90. 27. Strengtheningroad maintenance 0-28068 projoct No. 677 Uz: project lmplemnntation letter No. 1? A Annexes, USAID,August 19,18. 28. Annx No. 6: roads In N'Djamgne 0-28309 subdivision (proposal from outside design teem not yet accepted), USAID,1908. 29. Evaluation Economiquedu Programm D-24688 Routler 1909-1998 - iv - TRANSPORTSECTOR ADJUSTKENTIINVESTMENT CREDIT CREDIT AND PROGRAMSUMMARY Borrower: Republic of Chad Beneficiaries: Ministry of Public Works Ministry of Transport and Civil Aviation Credit Amounts: (US$60.0million equivalent) IDA SDR 45.4 million Termst Standard IDA terms with 40 years maturity Descriptions The proposedcredit is a hybridpolicy and Investment programintended to supportwithin the transport sector the objectivesof the ongoingmacro-economic adjustment program. The
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