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~.D.Luh ; "RICA RfXUClfALz LAKE CHAD BASIH OOHMISSI,* . M RbXfB LIiK§· . _";';;;;";;'...... iiiiiIiiiOii ... A.l.l>. Rotoranoa Cen~ '\ BoOIl 1606 • .,. ~.D.lUh._ ,"0<,: DEPARl'MENT OF STATE AGENCY FOR INTERNATIONAL I1EVELOl'MENT Washington, D.C. 20523 UNCLASSIFIED AID-DLC/}J-l020 May 24, 1972 ~1EMORANOOM FOR THE DEVELOl'I".ENT LOAN CONNITTEE SUBJECT: Afr-ica Regional: Lake Chad Basin Conunission - Two Roads Links Attached for your review are the recommendations for authorization of a loan in an amount not to exceed $1,000,000 to the Lake Chad Basin Commission to assist in financing the foreign exchange and local currency, costs of goods and services for the final engineering design for the improvement to all-weather standards of the Fort Foureau/Fotokol (Cameroon) Road and the Magada (Cameroon)/Bongor (Chad) Road. Please advise us as early as possible but in no event later than noon on Wednesday, May 31, 1972, 1f you have D basic policy issue arising out of this proposal. Rachel R. Agee Secretary Development Loan Committee Attachments: Summary and Recommendations Project Analysis ANNEXES A-Q UNCLAS~HFn;D , TA8U: OF CONTIlNTS SUMMARYI ;,\NO RECOMMENDAT,IONS •••••••••••••.•••••••• , ••••••••• i • I. INTRODT.x:T ION ••• •• •• •••••..•. •••• ..••••• •. ••• • •••• • • •.•• IJ. '1\ . Project Descri}.Jtion ....•.•..••. •••••..•.••..•. ·• •· 1 8. AID Development Stra.tegy •.. .. ••..•.•...••.....•. ···l C . Borrower •• •.• • .•..• .•. ........... ...•.•...... ...• 1 D. pro ject lIistory and Ui\ckoround .•.•.••.•••••.• •• .•• 2 II. II'ECIiNICAt. ANALySIS ••••••..•• . • ..•••.. •• .•• •••..•• • ..•• 3 A . u.xistino !toute nescrip tion .. ••... , ..••...•.•..... 3 B. Studies. • . .. .... .. • ........•. ... ;1 c. Desion StAndards . ......... , ... ...•..•....•..•.... 5 O. Orainage Struc ture li • . .. .. .•..•......... • . • ..• · •····6 ~. c onstruction Ml\tori"l r. .. .. •.....•............... 6 I F. Eng,incorill9.. ....... ..• •• . ..... .• .. .... •... t, G. COst Estis'l"t"fi.. .... • . • ..•. • . ..........•.••. .. h Ii. IMplementation pl.," . .. ... .. .... ..... ... • . .. t 1. Ma intenance .. .... .. .. ... .. •..•. •• .• ... .. ••. f) J. Technic.a.l Soundn~IJI. ... • •.•• ••• . • • ••••• . .• •• ••••• 9 111. i!CONO~ II C ANALY S 1 •• ~ . •••• , •••••• ••• • •••• ••• ••••••• ,\. Ge ner.:.l [)c.! s Crip tLon b( " 0::"' . ••••••••••••••• , lL Po r t Fou n n,U_r'O t o.ku 1 ..c .a.tJ. • .......... I I. ,\roa to b-6 ,S..: rvod ) .... •• • • • • • 1 Ec onoc:dc Ac t ivity () C ,,.. AI ... • • .., 1. Tr .,Ctlc ()Ont., l y ;,\.n -ll ' .... ll ..... • • I. OUfl(J t lh ~ n"l Y1>'f: • • ••• • ". IntQrn",l .t ;\~...1 of .... ~ul,., " n. ~ '''' .l' ••••• Jl' • c. ' 1;\ O Ad)\ .. f'QnQ'cH ,," 0<\ •••• • • • ... • • • 1. Introouct t o n ..... , •• • •• i\rO", to ~ .., 1''10' ..;) • • , :-:c:onoC\lC AC l~\l 1 t'l \11 U,... .~ . .. • .. I. t r (\C! i.e o.n.l t y ~ , / L. • • ... ·.. 5 . ~nv'tt' A~ )Y'\ ...... ... .\,ft. .. , .,. , • 1>. Inl~rnAl Nat.:: o r .~t l,t r '" • •••• .. 7. LOQO"~ ~ lvur C r o;~'~ • •• • • ••• 1 V. F'l Nlll'iC I AL ,VfAL y~ 1.$ • • • .. .. • I • • • A. FinAnci.ll "C'f\ulrq/lt " n t. , ••• , • flo' •· O• .,·in,,"cLAl JO hn ...... ...... .. C. Financial PI "n :ot Cons U 1oO'C t lolf ... ......, .. D. Oth.r Sourc· . o( 't n~NC e . .. .. .. .. .... , ... ... a. Repaymvnt .'To· P« ,··· .. · .. • •• •• •••••••••• V. SCONDM I C UFFacTS OF nut ~' ..... .., ................... ~ A. I.pact on U.;:,. JillCoftCllly .• \.......... • ......... .... ' . 8. attect on t"riv"t. fin ,.'",·" ....... -" .... ,1 ..... ..... ~ .. C. IJipilCt on U.':t. tl-"l.al'C. or ,...,.... ................. ,.~ ... • ~I:. [)Q'ACT OM T1I! ElCV1J:t*C1J1I .......... O-.~ ........................... ~ ...... oIo , .. ,,'" ANNEXSS A _ ~1ap Fort Foureau.Fotokol Hoad B _ Traffic Survey C _ Projected Volume of Through Traffic o • Projected Local Traffic E _ Summary of Projected Traffic F _ Net Benefits G _ Road User Operating Costs H _ Internal ~ate of Heturn Magada_Bongor !~oad I _ Tr f\ffic Survey J _ Vehicle Type K _ Summary of Projected Traffic L _ Net Benefits M _ Intern~l Hate of Heturn N _ Repayruen t Prospec ts of LCHC ~·Iember sta tes o _ Statutory Checklist P _ Section ~ll(e) Certification n _ Draft Loan Authorization ANNCXas A • Map Fort Foureau.Fotokol Hoad B _ Traffic Survey C • Projected Volume of Through Traffic o _ Projected Local Traffic E • Summary of Proj ected Traffic F .. Net Benefits G • Road User Operating Costs H • Internal ~ate of Return Magada.Bongor i~oad I _ Tr atfic Survey J _ Vehicle Type K _ Summary of Projected Traffic L .. Net Benefits M • Internal Hate of Return N _ Repayment Prospects of LCBC Member states o _ Statutory Checklist p _ Section 6ll(e) Certification Q _ Draft Loan Authorization UNCLASSH'IED AID-DLC/P-1020 May 24, 1972 SUMMARY AND RECOMMENDATIONS 1. Borrower: The Borrower is the Lake Chad Basin Commission (LCBC). The Loan will be guaranteed by the Member States (Cameroon, Chad, Niger and Nigeria). 2. Amount of Loan: $l,OOO,OGO 3. Terms of Loan: This will b~ a loan for 40 years with a grace period of 10 years. Interest w:~ll be at a rate of 2% during the grace period on disbursed amounts and 3% during the remaining 30 years. Repayment is in U. S. do 11a rs • 4. Total Cost of Activity: Total cost of the project is $1,000,000. 5. Description of Activity: The project consists of the final engineering design and preparation of contract documents for improving two roads in the Lake Chad Basin area to two-lane asphalt surface highways. These are Fort Foureau (Cameroon) - Fotokol (Cameroon) and Magada (Cameroon) - Bongor (Chad). 6. Purpose of Activity: To open up regional transportation links aimed at reducing the costs of agricultural inputs, production and transporting 0f commodities and stimulating the agricultural development of the area. It further serves to strengthen a regional institution as a base to support an1 promote regional cooperation which is an essential ingredient for the economic development of this area of West Africa. 7. Background of Activity: Based on a survey of nine international roadlinks in the Chad Basin area by the Economic Commission for Africa in 1967, the LCBC requested the U.S. to undertake a detailed feasibility study of three links: Fort LamywMaiduguri, Kaele - Bongor, and Bama-MarouA. The study, completed in October 1970, found the first two roads economically feasible und A.I.D. agreed to loan finance their engineering design. After sev~ral meetings of the LCBC, Nigeria undertook to finance from its own resources the Maiduguri-Gambaru section tt the Fort Lamy-Maiduguri road, leaving the Fort Foureau-Fotokol section for A.I.D. financing. The LCBC further asked A.LD. to extend the lCaele-Bongor road to Magada which, after a reconnaissance survey, was agreed. 8. Export-Import Bank Interest - Ex-1m clearance obtained. 9. Views of A.I.D. and U.S. Missions: The Loan is recommended by the Embassies in Chad, Cameroon and Nigeria, the Area Development Office (ADO) in Yaounde and the West Africa Regional Capital Development Office (WARCDO). 10. Statutory Criteria: The loan will meet all statutory require~ents. See Annex O. 11. Issues: None 12. Recommendations: Authorization of a loan to the Lake Chad Basin Commission in the amount of $1,000,000 1n accordance with the terms and conditions set forth in the droft Loan Authorization In Annex Q. CAPITAL ASSISTANCE COMMITTEE WARCDO Loan Officer: P. Bloom L. Jackson Engineer: W.A. McDonnell T.V. Leahy Counsel: J.W. Roxborough M. Anzivina Area Advisor: (RDO/Yaounde)C. Grader ii UNCLASSIFIED AID-DLC/P-1020 May 24, 1972 I • I.NTRO,I)OCT ION A. Project Desc£iption The project consists of the final engineering design and preparation of contract documents for improving to all~ weather standards two roads in the Lake Chad Basin area which are key sections in the transportation network linking certain contiguous parts of Chad, Cameroon and Nigeria. The two roads are (1) Fotokol (cameroo~ _ Fort Foureau (Cameroon), a distance of about 64 miles (102 kilometers); and (2) Magada (C~eroon) • Kaele (Cameroon) _ Kalfou (Cameroon) _ Yagoua (Cameroon) _ Bangor (Chad), a distance of about 94 miles (152 kilometers). (See mapl Annex A.) These will be two.lane asphalt_surfaced highways with associated bridges and drainage structures. B. A.I.D. Development strategy This loan is within the framework of AID's current program policy to support and promote r<'.gional cooperation as an essential ingredient for the economic development of the African continent. This inter.state emphasis seeks to strengthen Afr ican efforts to surmount national probleills of limi ted__ I;'_e,sO.urces" 1l!-¥_~~~_s __ and __ ~conomic .. _prosP-~.<:.ts. By channeling assistance through a regional organization, the loan will help strengthen the regional approach toward economic development in the area. The project itself serves an important economic purpose in opening up regional transportation links aimed at reducing the costs of agricultural inputs, production and transporting of canmo_ dities and stimulating the agricultural develo~ment of the area. This regional road project should also result in the attendant political and social benefits to be derived from regional cooperation. C. Borrower The borrower will be thp. Lake Chad Basin Commission (LCBC). The LeBe was established in 1964 by Convention between the Governments of Cameroon, Chad, Ni9'!r and Niger ia to deve lop a coordinated and maximum usage of their common resources in the area joining the four countries. It has sponsored studies and projects
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