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World Bank Document Document of The World Bank p - FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 3450-COM FEDERAL ISLAMIC REPUBLIC OF THE COMOROS Public Disclosure Authorized SECOND HIGHWAY (MAINTENANCE) PROJECT STAFF APPRAISAL REPORT Public Disclosure Authorized June 3, 1981 Public Disclosure Authorized Highways Project Division Eastern Africa Regional Office 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 = Comorian Franc (CF) US$1.00 = CF 250 CF 100 = US$0.40 '4 WEIGHTS AND MIEASURES 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 miles (mi) 1 hectare (ha) = 2.47 acres (ac) 4 1 metric ton (ton) 2 = 2,204 pounds (lb) 1 square kilometer (km ) = .3861 square mile (sq mi) GLOSSARY OF ABBREVIATIONS AfDB - African Development Bank AfDF - African Development Fund BCEOM - Bureau Central pour les Equipements d-Outre-Mer EDF - European Development Fund FAC - Fonds d-Aide et de Cooperation FIDES - Fonds dlInvestissements pour le Developpement Economique et Social GDP - Gross Domestic Product GNP - Gross National Product MEE - Ministry of Equipment and the Environment (Ministere de l'Equipement et de l'Environnement) OPEC - Organization of Petroleum Exporting Countries PWD - Public Works Department SECMO - Societe d-Etudes de Construction de Maisons et Ouvrages vocs - Vehicle operating cost savings vpd - Vehicles per day FEDERAL ISLAMIC REPUBLIC OF THE COMOROS FISCAL YEAR January 1 - December 31 FOR OFFICIAL USE ONLY FEDERAL ISLAMIC REPUBLIC OF THE COMOROS SECOND HIGHWAY (MAINTENANCE) PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. 1. THE TRANSPORT SECTOR........................................... 1 A. Geographic and Economic Setting ........................... 1 B. The Transport System ....................................... 2 C. Transport Policy and Coordination.......................... 3 II. THE HIGHWAY SUBSECTOR.......................................... 4 A. 'The Network ................................................ 4 B. Road Use ................................................... 5 C. Administration............................................. 7 D. Training ................................................... 8 E. Planning ................................................... 9 F. Financing.................................................. 9 G. Engineering................................................ 12 H. Construction................................................ 13 I. Road Maintenance and Improvement........................... 13 J. Previous Bank Group Involvement in the Sector............... 14 III. THE PROJECT.................................................... 16 A. Objectives................................................. 16 B. Project Description.16 C. Cost Estimates.19 D. Financing.21 E. Implementation and Procurement............................. 24 F. Disbursements.............................................. 25 G. Accounting, Auditing and Reporting Requirements............ 26 H. Ecology.................................................... 26 IV. ECONOMIC EVALUATION ............................................ 27 A. Introduction............................................... 27 B. Benefits and Beneficiaries................................. 27 C. Economic Analysis.......................................... 28 D. Sensitivity and Risks ...................................... 29 V. AGREEMENTS REACHED AND RECOMMENDATION .......................... 30 This report was prepared by J. Paintner (Engineer) and J. de Weille (Senior Economist), who appraised the project in December 1980. The report was edited by C. Applegate (Technical Editor). 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. - ii - Table of Contents (cont'd) Annexes 1. Tables 1. Road Network, 1981 2. Expendituresfor Road Construction,1974-1982 3. Design Standard of Paved and Gravel Roads 4. Three-year(mid-1981 to mid-1984) Work Program for ImprovementUnits 5. Three-year(mid,-1981 to mid-1984) Work Program for Patching and Resealing Units 6. Compositionof MechanizedUnits 7. Equipment to be Procured 8. Tires, Spare Parts, Fuel and Material to be Procured 9. Estimated Schedule of Disbursement 10. Economic Evaluationof Road ImprovementUnits 11. Vehicle Operating Costs and Savings 12. Economic Evaluationof Patching and Resealing Units 2. Outline Terms of Reference for Technical Assistancefor Three-Year Road Improvementand MaintenanceProgram 3. Progress Reporting System 4. Economic Evaluationof IndividualRoads to be Improved during the First Year of the Project 5. InformationAvailable in Project File Maps Grande Comore Anjouan Moheli . FEDERAL ISLAMIC REPUBLIC OF THE COMOROS SECOND HIGHWAY (MAINTENANCE) PROJECT I. THE TRANSPORT SECTOR A. Geographic and Economic Setting 1.01 The Comoros archipelago, located at the northern end of the 2 Mozambique Channel, consists of four islands yith a land area of2 2,166 km Three o5 the islands--Grande Comore (1,148 km ), Anjouan (424 km ) amd Moheli (220 km )--constitute the Federal Islamic Republic of the Comoros (see Maps); the fourth island--Mayotte (374 km )--is under French rule. The islands are of volcanic origin and characterized by a rugged topography with steep, rocky coastlines. Rainfall, up to 400 mm per month during the six-month rainy season, combines with rich laterite soils to produce a lush vegetation. During the rainy season devastating cyclones occasionally occur causing economic havoc and disrupting the transport and communications systems. Being a country of three islands also presents special problems. Each island requires airport and minimal port facilities as well as its own road mainte- nance crews and plant repair facilities. Also, the rocky coastlines without harbors impede coastal shipping, and land transport is hampered by the islands rugged topography, steep gradients, clayish soils and heavy rains all of which make road construction and maintenance expensive. 1.02 The population was estimated at 400,000 in mid-1980 with an average annual growth rate of ab2ut 3.5%, which gives the Comoros a very high popula- tion density (325 per km of agricultural land). The islands of Anjouan and, to a lesser extent, Grande Comore are becoming overpopulated and, given the limited opportunities for employment, are suffering from unemployment and underemployment problems. 1.03 The Comorian economy is based on agriculture which contributes an estimated 40% of GDP. Agriculture provides nearly all export earnings through four principal crops: ylang-ylang (used in the manufacture of perfume), copra, vanilla and cloves, whose prices can fluctuate widely thereby making it difficult to estimate the country's export earnings. The only significant industrial activity is the distillation of ylang-ylang. The service sector contributes another 40% of GDP while the transport sector contributes 2% of GDP. The GNP per capita is estimated at US$260, one of the lowest in East Africa. 1.04 When the Comoros became independent in 1975, France, the principal source of financial and technical assistance, suspended all aid. Most of the French community departed, causing an immediate adverse impact on the economy since the French manned many of the key public services. It is estimated that GDP reached US$71 million in 1974, having grown at a rate of between 6 and 7% p.a. in real terms over the previous five years. As a consequence of the events surrounding independence, real GDP fell 13% in 1975. The new Government had to cutback drastically on most activities and total - 2 - public expenditure was halved. The Government's appeals for help initially brought free food and medical supplies in early 1976, followed by a US$10 million loan from the Special Arab Aid Fund for Africa and a US$10 million suppliers' credit from the People's Republic of China. Since then Arab sources have provided aid for specific projects, and in 1979 France resumed budgetary aid. Multilateral sources, mostly the African Development Fund (AfDF), IDA, the European Development Fund (EDF) and the UN have been providing technical assistance and project aid. The Comoros' budgetary problems are still critical and will continue to restrict Government contributions to development projects. These problems are being taken into account in project design to avoid implementation delays. B. The Transport System * The Transport Network 1.05 The Comoros' transport system consists of about 762 km of roads, two seaports, and one international airport and three airfields. There are no railways or navigable rivers. The principal features of the system are: a main road network essentially comprising a coastal ring road on each island, linking the settlements in the export crop producing areas to the ports; a system of feeder roads and tracks, penetrating inland to the highlands where food crops are grown; two artificial harbors, one each on Grande Comore and Anjouan; and airports to accommodate international and interisland traffic, particularly passengers. Road transport dominates internal transport, while maritime transport Ls the main mode for both exports and imports and inter- island freig'-. Ports and Sea Transport 1.06 Mutsamudu on Anjouan is the country's main port; it can accommo- date only one 3,000-ton ship or two small vessels
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