; "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 for the improvement of agriculture, water resources, transportation and telecommunications in the area. The leBC has a permanent secretariat and is staffed with a number of personnel from the cooperating countries as well as a nWlber of expatriate advisors. Two commissioners from each sember country ~et twice a year, together with the permanent secretariat and technical subcommittees to discuss, plan and propose Co~ission projects. AID is assisting the LCSC with other projects and is providing an ~ID direct hire economist to the Commission .
• 1. Each of the member countries will act, jointly and severally, as guarantors tor the loan. As a condition precedent to disbursement, the Loan Agreement will require a legal opinion from the Lese acting as borrower and each of the member countries acting as guarantors that the Agreement and guarantees are legally binding obligations and a legal opinion from each of the guarantors that the LCse has authority to borrow and repay money. D. Project History and Background
In 1967 at the request of the LCBC,the liconomic Commission for Africa seat a mission to the Lake Chad Basin area to make a study of nine international road link projects proposed by the LCBC with a view toward recommending the more viable projects for detailed preinvestment studies. The findings are contained in Report on a study of Projected International Road Links for the Chad Basin Commission, Marchi April 1968. Based on the information and recommendations contained in this report, in January 1969 the LCBe requested the U.S. to undertake detailed feasibility studies of three road links: (1) Maiduguri _ Fort L~y; (2) Kaele _ Bongor; and (3) Barna _ Maroua. The United States agreed and on May 17, 1969 signed a Grant Agrp.ement with the LeBC providing funds for the study. An amendment to the Grant Agreement was signed on September 8, 1969 whereby AID agreed in principle to consider a request by the LCBC to finance, on a loan basis, preparation of the final engineering design and plans for the roads determined to be economically feasible. The firm of Experience, Inc., jointly with an engineering consulting firm, King and Gavaris (known hereafter as BKG or the conSUltant), were selected for the study. The final report was completed in October 1970 and considered by the LeBC at its me~ting held in Fort Lamy in January 1971. As a resul t of this meeting, the LeBC in a letter dated February 5, 1971 to the runerican Ambassador to Chad, requested AID fina.ncing of the enginel'rin,] on ctlJ three roads on a grant ba.sis.
Consideration was given to the request and on April 2U, 1971 the Commission was advised by a letter from the American Ambassador in Fort Lamy that AID was prepared to seek financing on a loan basis for the roaus detenninQd to be economically feas ib Ie, namely the Fort L.:uny _ M;\idugur i and Kae Ie _ Songor road links. The Bama _ Mora segment was considered not economi_ cally feasible and the Mora _ Moroua se9lllent, although tound to be economically feasible, was being considered for \oJorld Bank financing. At the meeting of the LeBC held in June 1971 in Lagos, the commission confirmed its request that AID finance the engineering design of the Fort L~y _ Maiduguri and K~ele _ Bongor roads. At this meeting, the African Development Bnnk meeting and in the interest of in its four.year development plan, ~~~~~~:':I~a~~on sectionit{s own of:tor the the Fort engineering Lamy_ 1971, Ni geri a signed a contract ~ this work to be financed from its
At the LeBC meeting in Forlt l..aruy in Decuber 197) I the commission, in ligHt of the develo~ents taken by Ntgeri~t ~equested that the project be rev£sed to include oniy the Fotoko'l.fi'ort Foureau section ot the Fort t..amy_I>IAid\l9Uri road, but tnat the Kaele_Bongor road be extended to M.gada ( C ~Qroon) which would tie this east.west route in t'he !lud,n north ... outh route ax.i:s of, G'ameroon.r Based on thIs roque&t, WARClX) under_ took a reconnaissance survey ot this 34 kilometer ext.nlion and in a March 1972 report concluded that it was oconoaically j usti:fied . On "Iarch 9, )972 , ,,)0 advi J; ed tho oLe BC thAt too extension to Magada would be included. 11 . T A. Exis ting Route oescrl ptJon 1 rort Fouxeau (C'WQ roon) _ Fo toke 1 {CoUll.: roon 1 SilO t ion This section of road it. " PV ro1d :aAhtly 10? kJI 1n length. It begins at the turry landing on U1ItJ C""",rQOn .. ide of the Chari Rive~ at Fort Fourel\u, eun lM" O"Mr"l ly oo rthwo ,. ~ (or },1\1 about 64 km and then directly W05t toe .\IloU.r 16 ~ t o .'otoko !. , OriginallY constructed to Qi\)(iawa Quos.teie MtaJWS.a.rda with lC(X,,~ , t meter minimum radi i (or hor hon t .' I Clun/c:. I l t now va.r , •• fr~ a to ~o meters in width with )oc~lizQd by. p~ • • u •• d lk•• And para llel dry and wet SUAson roadways; . thu 1'0 h .o'tl)" flat and traverses a number ot .,rCAS wher" thon, h l1ttlCt v.\fiIt-ation and a limited amount ot small thorn tr._, . Of.I,4' a Dd cul\iy~t ed crops . Although the road i s unpaved, it has b40n ~.1.I1V. 'y well maintained ang is in good s h.,p4' durino tho dry •••• oct. It has been constructed on an .mbAnkD~nt {rOD 1 to ~ .. \4r_ above the elevation of the surroundl "9 tQrraln .long • 900d portion of its length. Dikes up to , _c:tvr. h10h haY. ~n bu ~ lt on either side to prevent floodinO. ~ .. Y.r, it i. evident that these dikes have not pertor.ed too .. ~. Soll. along toe route vary Lrom silt y clay. &nd land., .~tt.e ••• Ih alka~is showing along the margins ot riv.r., .tt.... aDd ' flood r~a biK opcli ye AnLvcyk a back coto ol e are no soucs-o" c 'So vo crue on agegiat alongoi o 2 aaaCmron,* Kae"Ile Cameroonj Bonr ~Ghd~ ection~ Magad Wi s n i t r e t o o n o he m i a o a a o a r a whruns inanortherly ad sou eal dieXo. rce eas erly from Magado Kaele for a aaceo approxma l 3 , he road uns trzog co Mpa 2i.y4 exi r e eg atio aligh anLc isc nsoa stri:gh With good horio anot ,lgalan 8mer de, laeriesM Raedn cro=ed has oodsh o MoSt of hesurfc is7 corruga dOnyoa an maor lwwa ere brde p~ aaeructuxes along s ,section.--jSeven-lerite'bor ow sptw a aso rCeSan one s ad, souc re bIcate -along e x o Ka the cad ar'and-turns- inanaey ono A TOuloum'.piasing hrough-, p oceedS nor e2a a n 0'~tKa:1fou~ sc asoBog, and 'bn to_ gogas nort hieast, d iVr ei ti onno. Fr0_aoa 0 &,0 nd'R~ t e Lo n * ,e rr nthe Chad s4d kinOj' ~ ladig ~1 a0 * 30 .go~0 1 nangho r4 h A1 wheeaterocstandas exceptQ& stem"w'ie9g. rs a eO. Wibrren sandy7 areas to small'growh of're),id-,as an*gr h LLF~Gd~i 'is o'~'ften restricted b II odi Be a:-YQ tthQ *cejC)6 ad 't4 sason. km s'd;'& Logo tavm *0..: An trse oa cc ) 1 o1 i soecas& E eirce inopoae an, King and Gay as. -he fdesfin san ar sus~ 1or e' oQ-.iin oa e o ere: 2.r ao~IoxeuFckAJoe e6Wtnair Severala~~ierflaeousDi eeaex seraton was givn-t compaa e alignents,;constir t 'n*sco 8 ,e i:Leerin, c slu operating-co ,mi nnce .co ssand economi-c-benef s tI6nsu tatI recomn diiprovee s o heeid~a nie ema cc a feasibi~eru e uConsut.1~so, rebommendeda,,wo eap s e --,treatment c%0ver a'.' ablzdsndIs asphalt ' asb e e f that- can'bejjustified with eclai'iy t' ovde g sa ard f' serviceabii . The6 design section r ommendedc% l apVf a' t 1 ayme t:8. of 6.m-r ih08meter shoulder e'gex-or to e ge _ ou er meea.Thelttlmees wode~i deoih 'ofroadf'y id 'ould,,be 110.,meter's. Thie recommended -mini desin- spe~d ',,), k r, th, Scxe desigAed with a minimum ~horizonta erv~a'e 65 erE for'a double blA'Im USB'h' b ac eteit ~recommended pavement structtire.callsourmthck,.,' 11I5cm QRhib, bln 68' san sub5 cl thik, Sand-asphalt baq icos 15,c thc "(CER-0an h %71 s bbase 10.0 Om-tfcE f925 li~enayer, emaneiiof vriousthckeses'made, up~of lays and sadaxt4n ~< 2. a~-Bonor Road Sectionl Consideration was given t~o straight-line rotnsfc al' t~o Guidiguis'and fraim Toulo=m to; Boupy #but anal~s sindtd tht'Ah' constructi~on of drainage strture5 '~18highe ut l ~costs considrably higher than those esiad~ I 1 e follows the. exissting a~ligmn exep _,oaeocii WThe, route recommended otk ~ the first 6 kins betw~een yap',oua and4w~eoTsb otews '3higher ground. ' P '' A two-lane.,asphal -suarface treamet ovr ad thl " ecin", og i -~has been "recommeflde~d ~''The ty'cl oda game asa recommend5& for oe road.~ sect on % od pOf 114-ri6: -sttru~ct~uie-ca1- fora total. ttiesso 34C -treatment,sn-shl bas 9.0 cm(OB:35 blpIid cm (CBR=25), ;fiJ.ter san layerK15 m'(Milo an ba"* "0 ~ g~'J' -pfeV D. Drainage Structures Most of the culverts between Fort Foureau and Fotokol are concrete pipe between 50 cm and 100 cm in diameter. When found adequate for runoff capacity, they will be extended with the same material as the existing pipe. For new installations on both sections, corrug etal pipe with a minimum gross culvert size 24" (60 cm) is recommended. The ends should be anchored to concrete saddles and the embankments at both ends should have slope protec tion. Where required, side ditches should keep a minimum distance of 2 meters between the top of slope of embankment and the top of cut for the ditch. All ditches are to be trapezoidal in shape with a one meter bottom width and a minimum of 60 cm in depth. The existing single lane structures, spanning river crossings, are recommended to remain unaltered with the proposed roadway improvements constructed to taper towards the existing abutments. E. Construction Materials Asphalts for base and surface course constructions are available from the refineries in Lagos, Nigeria. Portland cement is manufactured at plant in Kano, Nigeria, although quantities may be limited and some cement may have to be imported. Steel reinforcing and corrugated metal pipe will have to be imported. The transport study stated that materials !to construct the road are available most everywhere a]ong the rc'ute; with the except ion of gravel .or_,crusJie. 1 stone which will have to !e t:ransportcd for distances over 100 km. ater in limited qntantitie,; may be obtained from shallow wells (50' to 100'). Artesian we"lts (600' to 800') nv!!] have to be constructed to meet the reqIiIIe,,entq n lreal; not accessible te rivers. F. Enineer ing The estimated lengt, of time to accomplish all Lh !, I1 engineering and design for each of the t :,):ectiilnq z, 15 . it.o:: is assumed that much of the field .,,; and 'he d .;- ]g ' r ch 1 ; ,! i un, can be performed simultaneously. It Is ilh assuinc' that the sultant who will perform these services l,so sipervise onstructl oiu. The total costs for all engineering sterrI es ,(r ; .- t,e . he approximately 1 ,2%of the constructlI lt s:ts u.;ith t., ;"fu eCxchange portion of this amount estimated at 707 ,n,! local , T'he "Transport Study" d,.:e-; :lo t , L . or justification for the construction - 'l-h. v, 10) k:i t erC0of paved road from the ferry ramp te Bongor, Cii ! i Y t 'the-e Bongor route. Therefore, a study will be included in the contract scope of services for the engineering des:ign to determf- whether or notit section should be included in the final design of Lhe Magada-Yagoua- Bongor route. The consultant (Transport Study) Indicated that: (1) the engineering and construction costs of these ten kilometers of road amount to about $1.2 million (such costs may increase through -6 con ~a s f~cor ransport~ing his heaveJr e ~*erthreeilomeeso ~2 schoad eo e~ ~~~'pl fWo i icange -he regime and charac ri er dur-ng f.io eriods and mayRsObEc hne ra u poi.b teound on f ail e, n the propose pay edra , aBongor is nor connec tany aoe ail -e he oa a I~on_ o0 he abovye, 1tvisquest ona5 e?~ t e erry eouw,,-_*" et during He fro seasons, due t the inrae vet y the wa e s'owin~g, hro0ug he const rcted rivyer -chne Thfnat'engineern esign sha bes repareast tkitocnsideration, he possib it of bisbbgabi cotacosfrmCde91conres f,' . ,D, f a ce&d ad th* possEib ili ty of 4anin by inte rnat ona edingae s G., Cost Est mtes ~- The, basic~ costs. per- kilometer usedbelc~ow eetkn romC e,, >7.,Experience,- King and Galvais trasport'td~ae Q'ctoAi 190. , ,Wt the recent -addiion of the Mzgtda-Kaele;scton,the ei il ad* Zcs for his se has bee based uorpnteuitcssuetion d~i;' o6 h Kaele-Doubane sectioni, sic h eri n soilsu4coilr'eeblo, each other. The trnpr tdypeiiayunit~cotfgre local prcsfrmtras"a~ n qimn for~aj' ite,:o Swork, TheCoslatas etmtd h Iotantebon6cosrto' Scmmencing,in July' 97 Gl~lowodquO'nc fr~ cotn ce'ad1X engineingdeshndBupdviioi of cntrcin.TafoljngQ8L, si was~used because~cont ucowi~;~llVnot§'begn tles uti st-97 and cons truict16n cos ts -aor' ''suject~to'yei rly ecltinetit4a 5%per year.~ 1. Fort Foureau-Fotokol Road C102 ka) -- 4.,soil Tape No. Km otK Tt4 1 26 41,939 1 2 62 42 247 34 34 4 3i4196 SSub-Total, Construction:Cs : 7 ~ CohtJinge cies- (20%) TdtalCntuio Cost,. FinaJ,,Engl n)$iri &SprV~s Total Engineerin nd osrc06Cll Magda-ael 34 32J91 Kaelele u a2 SQ- aeay n-oigen es o 51 U Ge n S 0 UjAs Oflpu~ ",ii 04Q 02U)oo 'T L.IL E~ n6n 6t 70% U au~ 616d rA'tn delgnfa as f0onrWij xjs: ~k~ t~~ ~ ~awaU~ WForeign~ 5 hubExcha~q~tngaed To'4tarit &t -- -- -V o rm n Wttcrqfi a awar a*4 uoo-c -L-1 yc0 ' ~IJ95 I$s CCabiKIS M awo onoNuvmr 2 197L t)1I)'mpOj0t . '53533~a ------m tq d ui u)5 4.S C-6 . for ccpui''-34mo~nfr -wbC4 lm 3.') 5 .0 tA~a n SM 5of41100 M moits o6.33 f')hnsrc o 3V ft. oiwe." bo plCd- h 4,6_t~auicntuto 004toforhilp, YoreauPotok~.ol nd.14hduaBnoi r cf~nad Thi~fr u casp33 acntat 3taml 5333354cotKngaduvv'ri/ie i-a to f~nuha~ re-si wouu of cotrctcot 'foXivp7j bay - -Pla 3 3'io *> ~ ~ *Coa thorito Juneit 1972p&<'v~ 34o LMA 3IW3. November Cntmnr.Domu t h s b AW aaVotJt Doamenis' ) Ii a - 4, I. Maintenance The Consultant computed the yearly maintenance cost for an improved bituminous paved roadway at $1,005/km. This is close to the Cameroon's present appropriation for maintaining bituminous paved roads at $903/km. It is expected that the Department of Public Works, Cameroon, will be able to maintain the Fort Foureau- Fotokol section of the proposed roadway up to required standards. On the road from Magada to Bongor, in Cameroon and Chad, the route section from Magada to Yagoua is maintained by the Department of Public Works subdistrict of Maroua. The route section from Yagoua to the Logone River ferry is maintained by Chad the local authorities of Yagoua. The section of roadway in from the Logone ferry site to Bongor is maintained by the Department of Public Works of Bongor. The Consultant has estimated the yearly maintenance cost for an improved bituminous paved roadway at $1,005/km. With the present budget allocations of $903/km by Cameroon and Chad for the maintenance of bituminous paved roads, both countries should be able to maintain the proposed route from Magada to Bongor. J. Technical Soundness The design standards proposed by the Consultants were modified found to be based generally on American Highway Practices as desirable to conform with the standards of Chad and Cameroon. and terms The location studies were adequate to define the scope The preliminary of reference for a detailed design of the project. comparison estimates for design, supervision and construction by cost to be to similar projects in East and West Africa, are considered within 20% of the degree of accuracy required. III. ECONOMIC ANALYSIS A. General Description of Area The problems and practices associated with the development Chad Basin of agricultural resources and commerce within the Lake area are regional and transcend the economics and political described in structures of any one country. For that reason, as and plan Section I C above, the LCBC was formed to coordinate of the development activities in a defined administrative area with a This area occupies about 345,000 square kilometers Basin. as of population estimated by the Consultant at 4,352,000 in the 1969. Nearly one-half of the total is located December combined Nigerian portion of the Basin, with Chad and Cameroon another 46 percent and Niger 5 percent. The contributing By average density is about 13 persons per square kilometer. -9 country, the average density ranges from a high of 44 persons per square kilometer in Nigeria to a low of 2 persons per square kilometer in Niger. The major economic activities of the Lake Chad Basin are concerned with the production offood crops, cotton, cattle and other livestock such as sheep and goats; the processing of these products are represented by cotton gins, cotton seed and peanut oil extraction mills, livestock slaughterhouses and a small amount of textile manufacturing. Commercial fishing in Lake Chad and the major rivers, such as the Logone and Chari, occupy a rather sizeable portion of the population and annual catches in the Basin are about 90,000 tons of fresh fish of which more than half is processed as smoked, dried and salted. The Lake Chad Basin has a transportation system com. patible only with an impoverished and heavily subsistance economy. Internal transport, for the most part, is primitive with much of the freight transported by head load and boat. Paved roads in the entire Basin total less than 1,000 kilometers. In the Nigerian sector, two roads run northeast and southeast to Baga and Bama. Similarly, from Fort Lamy, two short paved roads extend to the north and to the south. In the Cameroon portion there is the Waza.Maltain road about 100 kilometers long and a short section running south from Maroua in the direction of Garoua. Inland waterways are not numerous, primarily limited to Lake Chad and the Chari and Logone Rivers. There are no railways in the Lake Chad Basin except for the Nigerian railway terminating at Maiduguri just inside the western boundary. Air transport is an important, but expensive, element in transport in the area. B. Fort Foureau.Fotokol Road 1. Area to be Served The Fort Foureau to Fotokol road is the only surface transport link between these two cities and the principle connecting road link between Nigeria and Chad in the area. The road link begins at Fort Foureau (Cameroon) at the junction of the Logone River" with the Chari River and runs generally northwest through Cameroon to the el Beid River which forms the Cameroon-Nigeria border at Fotokol. Though none of the road itself lies within Chad, it is nevertheless extremely important to Fort Lamy and its hint- rland areas as it currently constitutes the primary arterial route for Chadian imports and exports which must funnel through Fort Lamy. This inter national road link also services, though in a more minor way, the sparsely populated Cameroonian region immediately south of Lake Chad. In Chad, the principal roads linking Fort Lamy with the hinterlands are the Djermaya.Massaquet road with extensions .10 to Massakory and Mangaline, and Kalgoa.Guelengdeng road with extensions to Bongor and Fort Archambault. Along the route to the Nigerian border, the only links of importance in Cameroon are the Waza.Maltam road with extensions to Makari, N'Gourma, Digam and Goulfey. In addition, the Fort Foureau.Fotokol road is an essential element of one of the four main routes to the ocean. The Nigerian railroad runs from the ports of Lagos and Port Harcourt to Maiduguri. The distance between Maiduguri and Lagos is 1,790 kms and between Maiduguri and Port Harcourt 1,445 kms. From the railroad at Maiduguri commodities are trucked over the 250 kilometer route to Fort Lamy. Thus the route under study forms a link in a long and major artery serving as a principal means for importing and exporting goods of the Lake Chad 9asin area. Nigeria is financing the engineer. ing design of the MaiduguriGambaru section and the Fort Foureau. Fotokol section will complete the upgrading of this important axis. The area of influence was defined by the Consultant taking into consideration a number of actual and potential physical restraints. Lacking these restraints, an arbitrary constraint of distance was used assuming, in absence of roads, traffic to the road would not operate beyond a distance of 12 to 18 kms. This produced an estimated 2,160 square kins to be served by the road link. The population of the area of influence was estimated by the Consultant at 40,0U0 in 1969 giving an average density of 19 persons per square kilometer. The popu. lation is expected to increase to 57,000 in 1995, equivalent to an annual average growth rate of 1.3 percent. 2. O-conomic Activity of the Area The Consultant found that the area harvested 31,000 tons of crops with a gross value of 1.5 million from 42,000 hectares in 1969. Principal crops in the area include millet, sorghum, groundnuts, cotton and rice. By 1995 crop production in the area is expected to increase by nearly 6C0, without the road improvement and by 10M, with the road improvement. Total tonnages will thus equal about 54,000 tons and 65,000 tons respectively with the values of crop production ranging from ,2.9tD 3.5 million. Other major activities in the area consist of live stock, fisheries and forestry. It was estimated by the Consultant that the area contained about 78,000 head of livestock projected to grow to 91,000 with the road and to decrease slightly under a "no road" condition. Any increase, however, would be inadequate to keep pace with the increase in total consumption. It is estimated that about 5,400 tons of dried fish moved along the .11. study road in 1969. This is projected to reach between 11,000 and 1, 000 tons by 1995 as a result of the present assistance interest and being given by the member countries to the industry, fishing particularly on Lake Chad, and the relatively favorable prospects for expanded processing and marketing of salted fish. Tizere is no manufacturing activity in the area the of influence and Consultant did not anticipate that any future development of manufacturing activity would have a significant impact upon the projected transportation activity. 3. Traffic Density Analysis As a first step in determining the economic feasi. bility of the proposed road improvement, the Consultant made an analysis of present volume of traffic using the likely rate road and the of growth of such traffic given an improved road. In making this analysis the Consultant had the use of the following data: ferry boat usage statistics for the Fort Fort Foureau Lamy.. crossing; a traffic flow volume map for the of Cameroon Republic showing average annual daily traffic; and the Chad 1962.63 Traffic Survey Report by BCSOM. To obtain detailed tion informa on present road usage and to substantiate and update traffic available data, the Consultant conducted vehicle classification counts and roadside origin.destination surveys at three stations designated for twelve hour periods over six days. This survey was made from November 10.15, 1969 running from 0600 to 1800. The locations of these stations were the Fort Foureau landing ferry police post; the Gambaru customs station and the checkpoint police at the eastern edge of Maiduguri. While the" MaidugurL. Gambaru section, which was a part of the study, is not included in this project, traffic on that section directly affects the study route. The traffic count is shown in Annex B. Using the results of the traffic counts statistical and prior material plus a seasonal adjustment factor, the Consultant developed an average daily traffic count for for 1969 the Nigerian and Cameroonian portions of the road. shown This is in graphic form in Annex A. The seasonal adjustment is based factor. on past records (1962.969) for traffic crossing Chari the River from Fort Lamy to Fort Foureau which accounts a for major portion of the traffic using the route. The remaining portion of the traffic is estimated to follow a seasonal pattern related to agricultural production and seasonal rainfall. The future traffic for the Fort Foureau.Fotokol was projected for road a condition with the road improved and with no road improvement. High and low estimates were developed based on two different rates of development. Projections separately were made for through traffic broken down into general trucks, cargo petroleum trucks and light vehicles. Through traffic was considered that which crossed the Cameroon.Nigerian border. .2. are the same with tonnages of through traffic The projected but the type of truck traffic without the road improvement, and larger, more economical reflecting the trend toward changes trend accounts for the difference vehicles in the future. This the road by type of truck with and without in number of trips to grow at a rate Light vehicles are expected improvement. growth in the area. For the similar to the projected economic from economic growth rate is 3.5% low estimate, the projected 1986 and thereafter 3% to 1995. to 1976, 4% from 1976 to 1969- 1969 the growth rate at 4% from The high estimate calculates and thereafter 3.5% until 1995. 1976, 4.5% from 1976 to 1986 of traffic projections for each See Annex C for the through the three vehicle classifications. considered that which does not Local traffic was the border at Gambaru. During cross the Nigerian-Cameroonian for that local trips were primarily survey it was determined to market and carrying surplus agriculture delivery of goods, that this pattern of people. It was determined transportation of estimated agricultural and relate to the growth will continue into the zones along deficits and the input tonnage surplus and Annex 0 together with the route. This is shown in the study local traffic has been estimated local traffic. Future highway. projected without improvement of the only for the growth expected road has expected from an improved The additional local traffic analysis as net value added. been accounted for in the of total projected traffic See Annex S for a summary for the route. 4. Benefit Analysis (a) introduction as benefits road The Consultant has identified savings and incremental cost savings, maintenance user operating These first two cate- added of agricultural production. highway justi value methods on which to base gories are well-accepted analysis. fairly accurate numerical fication and subject to of Cameroon'.; comprises the major portion Agricultural production also represents and export trade. It total domestic production labor force. a large majority ot its the productive output of the area of influencu encircling internal economy of the upon The project is similarly dependent proposed road improvement areas in Chad This is also true of the agricultural production. it is felt that the contiguous to the sLudy road. and Nigeria to the agricultural production project will certainly contribute included this the Consultant has rightfully of the area and that is a small analysis. such increment element to the benefit has only a benefits calculated and percentage of the overall limited effect onthe analysis. -13. (b) Maintenance Savings Annual maintenance savings have been estimated by comparing the annual maintenance costs and resurfacing expenditures for the improved road against the costs of main the existing earth road with the traffic volumes pro. taining are jected for this road (low estimate). Maintenance savings shown in Annex F. (c) Road User Cost Savings The Consultant has also developed motor vehicle type operating costs of the existing type road and proposed costs were paved road and computed the resultant savings. These trucks, two ascertained for autos, light trucks, two-axle cargo kilometer .ixle trucks with trailers and semi-trailers. The per costs shown in Annex J took into account depreciation, vehicle savings fuel, oil, interest and time. The road user im-intenance, and were computed with and without road improvement conditions of low and high estimates. Although the projected tonnages road improve through traffic are the same wita and without the truck ,ent, as stated in Section 113.B.3 above, the type of economical traffic changes reflects the trend toward larger, more in vehicles in the future. This trend accounts for differences with and number of trips and in user savings by type of truck 4,ithou. the road improvements. (d) Net Value Added by Agricultural Production The Consultant has estimated an increase in crop the road project. ,tnd livestock production directly attributable to as 75 percent Thk. net value added for crop production was taken without a of the difference of the gross production with and a factor ro;ld improvement. For livesLock, the Consultant appliedaoth these or (,. percent against the gros; value of production. farming Cactors appear reasonable given the minimal input in reflects )ractices in the area. The lower figure for livestock gradual change from present irrigation grazing A projected See ,.ractices to greater utilization of ranching by 1995. pro- :Annex F for benefit:; resulting frocn increased agricultural Auct ion. 5. Internal Rate of Return AnalysP: (a) Cost sinates - Iovt, !-'ct'ue -I.Aoko.L Road US Dollars Bngineering and Constructhn Supervision 621,292 5,177,429 Construction 798, 721 fotal 5, -14 This is based on construction beginning in construction period. January 1975 with a two and one.half year Section II.G. of this A full analysis of the costs is found in paper. The estimated flow of expenditures is as follows: Percent of Estimated Total Construction Costs Time Period Total Construction 1975 40 2,319,489 Jan-Dec 2,319,488 1976 40 Jan-Dec 1,159,744 JanJun 1977 20 5,798,721 Total While construction is not expected to commence engineering first part of 1975, some expenditures for until the difference will be made in 1973 and 1974, but the actual design analysis. in flow of funds would not substantially affectthe (b) Comparison of Benefits and Costs Using the benefits discussed in Section III.B.4 at 7.3% using the internal rate of return is calculated above, (See Annex H). low benefits, and 8.8% using the high benefits the determined by the opportunity cost of capital in the area was The rates of return Consultant to range between 8.12%. The internal or on the low side of for the subject route fall slightly below this range. he internal. The Consultant in the study estimated running for the Nigerian section of the road, that rate of return but to Gambaru. Using the low traffic estimate, from Maiduguri proposed at net value added from an irrigation project including of the IRR was estimated at 17.8%. Even if none NG-la, the low estimate NGala were to accrue, the IRR using the benefits from of these between i0 and li and if the high estimate would range 12%. were used, this would raise the IRR to about other benefits as one the Fort Lamy.Maiduguri road was considered originally includes The IRR for this overall road project which project. high benefits the Fort Foureau.Fotokol section is 147 using above and well within and 9% using low benefits. This ranges area. the opportunity cost of capital for the versus An analysis was also made for a bridge from Fort Foureau to a ferry for the crossing of the Chari kiver IRR for construction Fort Lamy. The Consultant found that the in excess of 40%. Even if this is somewhat of a bridge is operation it is clearly shown tat the existing ferry overstated, to the economies of with the long waiting time required is costly .15. the Lake Chad Basin. While the IIR, for both the high and low below estimates for the Fort Foureau.Fotokol road are either or in the low range of the estimated opportunity cost of capital for the area, the project closely approaches the in quantitative justification. It also should be considered the context of the emphasis put on regional economic develop the ment of the region. In view of the high justification for this Nigerian section and the bridge, theqneed for improving link is vital if the full benefits from this regional road are to be realized. This is one of the first major infra. structure projects of the Basin undertaken in the regional context. The coordinated effort toward regional development of the Basin should result in greater economic benefits for that the area and this road will play an important role toward goal. C. Magada.Bongor Road 1. Introduction The study by the Consultant for this route was con. by the fined to the Kaele.Bongor section as originally requested LCBC. At the request of the LC13C in aecember 1971, AID undertook This study a reconnaissance study of the KaeleMagada section. It also showed the 34 km extension to be economically feasible. Kaele. pointed out that this additional link would tie in the Bongor road to the major north.south axis in Cameroon mid.point between Maroua and Garoua, thus linking up two major transport the ori. routes. No satisfactory explanation was provided why neither ginal request for a study stopped at Kaele, for this by itself. joins a major roadlink nor is a logical terminal point from the The economic data contained in this section is derived Consultant's study and the AID reconnaissance survey. 2. Area to be Served The Magada to Bongor route is an important east.west Chad route to this part of Cajeroon and to the part of service improved directly south of the road and Fort Lamy. Except for the route is stretch of road between Lara and Guidiguis, most of the of only passable during the dry season. At the eastern terminus the road, a ferry service, operating only during the dry season, provides a means of crossing the Logone River to Bongor. Bongor's confined importance as an export-import center is thus principally there is to the dry season from December to July. From Bongor a dirt road north to the bituminous surfaced Guelengdeng.Fort Lamy road. The same criteria used to define the area of influence .16. for the Fort Foureau.Fotokol road was used for the Magada. Bongor road. The area contains an estimated 4,200 square kms with a population estimated at 172,000 giving an average density of about 41 persons per square kilometer. The popu lation is expected to rise to 263,000 in 1995, equivalent to an average annual growth rate of 1.6 percent. 3. Scononwic Activity in the Area Based on the Consultant's report and the reconnaissance survey it is estimated that 98,000 tons of field crops valued at 6.0 million were produced from 117,000 hectares in the area of influence in 1969. Principal crops of the area are millet, sorghum, groundnuts, cotton and rice. By.1995 total production is expected to grow to 182,000 tons valued at $11.4 million with no road improvements and 270,000 tons valued at an estimated 17.2 million with the proposed improvement in the road. Other major activities in the area include livestock, fisheries and some manufacturing. It was estimated by the consultant that the area contained about 59,000 head of live. stock projected to grow to 71, Co head with the road improvement, but to decrease slightly under a "no road" condition due to the loss of grazing land to cultivation. liowever, it is anticipated that the area will continue to have a heavy deficit in meat production. The Logone River is the major fishery resource of the area and catches are sold primarily locally. The total projected tonnages have been anticipated at less than 2,000 tons. Manufacturing activity consists of cotton gins at Bongor and Kaele, a cottonseed oil extraction plant at Kaele and a rice mill at Yagoua. The expanded activities of these plants and additional plants to process future production have be en included in the calculations of tonnages for this road. 4. Traffic Density Analysis In analyzing the traffic of the area, the Consultant had use of the following data: ferry boat usage statistics for the Yagoua.Bongor crossing; a set of three traffic flow volume maps for Cameroon showing average annual daily traffic for 19(,b; the 1962-63 Chad traffic survey report by 13Ciav1. To obtain additional information on the [resent road usage, two 7.day traffic surveyswere made. One, conducted in November when the Yagoua.Bongor ferry was not in operation and the other in January when it was in operation. The first survey used three stations: the north edge of Kaele, the "T" intersection in Lara, and the west edge of Yagoua. During the second survey six stations were used. These included the same three as in the first survey and locations at Kalfou, Yagoua Police Post and the Bongor Customs Station. Vehicle classification counts and origin. destination surveys were conducted at these stations for twelve. hour periods. (See Annex I). The vehicle type as reported at .17. Lara was considered to be the best data to represent the road and is shown in Annex J. The two traffic counts and prior stati! tical material, plus a seasonal adjustment factor, provide a 1969 base year average daily traffic count. Traffic for the KaeleMagada link is estimated to be at least as high as the Kaele.Lara section, the section immediately west of this link and the most similar area. The predominant amount of cargo traffic for the Kaele-lara section is shipment of raw cotton and rice. The Consultant estimated that 12,0OO raw tons of cotton and 7,500 tons of rice traversed the Kaele.Lara section. Rice shipment over the Kaele.Magada route can be estimated to be the same since the rice is being shipped to Garoua and must travel the entire route length. There is evidence that transport of raw cotton and cotton pro ducts exceeds that of the Kaele.Lara segment. The cotton gin at Kaele processes about 30,000 tons of raw cotton per year. It was estimated that about 1/3 of this or l0,OWO tons came from areas which would require trasport on the Kaele.Magada section. Finished products from the cotton gin and oil extraction plant total about 17,400 tons. This entire production is sent to Garoua over the Kaele.Magada route, but does not affect the traffic on the Kaele.Lara section. Thus cotton and cotton pro ducts provide a total tonnage of 2'7,40o tons on the study route. In addition, about 4,000 tons ol fuel and other products necessar to operate these two factories ;re shipped from Garoua to Kaele through Magada. There is generally a direct correlation of passenger traffic to movement of cargo. It ha-. been shown that there are substantial freight movements on the Kaele.Magada road, probably in excess of those on the KaeleLara section. It is reasonable to assume that passenger traffic will generally follow a s:milar pattern and at least be equivalent to the contiguous Kaele. Lara segment. A 1965 study of the MagadaLogone River route found that a predominant amount of traffic (8c,. ) u.ing the road traverses the Kaele.Magada section. Estimates of future traffic were made for through traffic and local traffic. Through traffic was defined as traffic which has an origin in one country and its destination in a different country. The local trips have both origiin and destination within the same country. A projection was made for future agricultural pro duction and cargo shipments based on the development expected to occur in the area. The main source of demand for freight trans port will arise from export and local movement of agricultural production, chiefly cotton, rice and livestock, and imports of such items as fuel and related products, building materials, food products, beverages, and finished consumer goods. Growth .. 18_. rates were predicated on the estimated growth in gross domestic products for North Cameroon. Both the high and low': estiiuate of growth rates, given in Section III.B.3. above, were utilized. This demand for transport was then translated into vehicle trips by type of vehicle and converted to average daily traffic for the study period using a weighted average of type of vehicles through estimate of trip length over the length of the road. A summary of projected traffic for 1976, 1986 and 1996 is given in Annex K for low and high estimates of local and through traffic at the three major survey stations. Local traffic has been estimated only for the growth expected without improvement of the highway. The additional etraffic which is expected to develop through construction of the improved road is accounted for in the benefits section as value added. 5. Benefits Analysis, (a) Introduction As in the case with the Fort FoureauFotokol road, the Consultant has identified as benefits road user operating cost savings, maintenance savings and incremental value added of agricultural production. In this case high agricultural production of rice and cotton, relatively valuable crops, contribute heavily to the substantial benefits derived from the incremental production. Since the Kaele-Magada section is in the same general zone in terms of teriain; soils, agri cultural production and general economic growth, the same method of calculating benefits as was applied by the Consultant to the Kaele-Bongor road was adopted. Since the KaeeMagada section is about 3(:,. of the distance fril Kaele to the Fe'rry Landirg, it is also reasonable to assume that benefits on this sec:-tion would amount to at least 3Cr" of the benefits found on the Kaele_ Ferry Landing. It is one of the more popuJated parts of the road, with heavy agricultural production and it has been shown that it is likely that traffic on this segment of the road exceeds that of other sections of the overall route. Consequentl it is felt that calculating benefits at 30, of the benefits found for Kaele.Perry Uanding section would probably be a conservative e s t imat e. (b) Maintenance Savings The Consultant has quantified the savings that would occur in the form of lower maintenance costs. These have been estimated by comparing the annual maintenance costs and resurfacing expenditures for the improved road against the costs of maintaining the existing earth road assuming the same ADT'j for both types of surface. The difference in maintaining a paved versus earth surface road ranges from -,53,UOO0 in 107e .19. rYe -clng s uCe *n n nvace -a areso nne CI coad User os, avns e ngcssoeheexis ing odadoe roposed ye cad and coup1'8 ctdthe iluJ anains hes o'swr so r And n sae bai niae nerScin1184 use fl 0=cthe.. P sayu nginss. et alue ofNwordcno V'Ier tez64rt Gosutn ha esiniateanl inrae inco -ate th dic sso o he r ~nd ve~sock~roduto hih i cdlect h attbta e to. te ~ourWL-tokl Io1 roan secion agdutrJpouto opie 1"th - w o e" env>d-:ra,., r ;ihlo conty'prodcinadabrocee~to.~fec hi roauof influenc surondnivodp h ssmna (d Ne consdere to be As a reul 6b~~ip-ve fe cpnsiferigdthe ru(Ilof r a d the4~iCfarnsut -ha esimtdan i e e,%was arp nd livestcprdu rodbcaus'wi it s an ~rietl, att tabope'atoretoe n t ee~1SI fo I*,uii aIrtokor" o3 inputoa Th une1Vpru ct - csomprse r~ductio W~ & sect n~bdp 1g te'fcti o~5"i t h,- ~~~~~~~~~ ~ ~ahcunr' ma1orIprio'o rd~i "Ij bo 'ceasonabTheanstiiuiteps acnengaineeringur consid4c in tnd str c pon upervbecseCO ~s~ae asrgaefollows:dthreor 167 00 in an9 C8'o 5-u lons i n 197 (Se nnx'L a Tot le comnmena n1 a on J6 1yers. he ou oW of ex en i rs ise0~. e he loig I 1W. frame.. die erd 751~n~ ~cIn Cos ~o JNHUax7yDecember 1975 40 4,4 January Dcember_ 197C o,4 Januagry-June ,177 2J.27~ Tol 113 ,02 -. (b~ omparison of nef~t n Cost t lie"Using te.,ben P S di'scussed ,in Sectio6~IC~ abvtei~era a~o e urn for he e tre - oad le ngt Is c alculated a10 as show in M.I~ne Tris f _1s 1JMj't th i e 9raneof t e op o A i iy c st ofN capit lI n h dby: the Cbs an t to be fon8in127 n niae~epoo ~ieconomical ju~fied.N 4 Y,3ust . AtN1presnt a ferryJ service operating 'on the, Chadsi o;f _thle Log6ne iveraout Ifo :1 lesfrom~ lngor prov~eIhv ~ e teConsultant 2 . A.. V v., JCUN1 which: found that ,the present fedequis a -eto '~handle the I99 projec ed traffic 3 Joa 1o ve ~Nferry is .over, 0years old~andL wi th a caipacity of ont exist'inL15 L The Consultant -recommjended. that S3C0 hs~ berpae 17 iha ton. ferry with an: add it onal 30 ton fryt 1.9~J66 for st andby and mntelawceN eprhsd l purpses . The prsn ot o0 thiis investment.Lsand the, operatibui and maintenanc costs fromL 1976-9-9 ~dionted at 12$1.,is about oa,,Of 1oti OO.Q The discountedcot bridge across the,,LogoPe wks clclae at aot NThq Major benefi.t S of~a.,brid~jo versusa ferry service are(1 K elii, nation~of* wvaiting rti ne;,~c(2Lriducion in tr Ave I :tia ind 1(3) 11)as sage 24 hours v aNay":, fuow&ver a~t ~tho Yzxtoua.BongoaC.rsi ~t Ie Ie r1Ver,no r ccord dN wa tinj9 Ps Sne er w to be adequate tohandle the tragxficin195adthr ohther overriding U benafts , strctuxri t 5s the2 Logon dh t' OUJCJ ally justified Eh e f ~anci4I re' irea tsi l r 10' for thev' ,:roa sza 0 k Lo o "- 1 46'ti "t n tj M. de' IM _MCs Fi~ e 1yi Exchange olan d- p 3 o28,ing22,0 9j0 InRthe 'ranC Agreement coeigthe feasibility stiidy, A.I.D. -~:~K2alreadto conider financing the~final enjineering design of those roads fon foaatb14,'hich, include the- wo beinig iscussed. For effecive and *xe,'et~ roject ,implementation, t.'sbigrecommended that A,I.D. ' tinance both the foreignexchange-and local costs. The borrower isto b* the Total F reowhe Cost C.* liancii. Plan-for ~n.iui~ -Coensrc 7 A I reply was that it was too early in the development of the project to commit its funding. However, in discuHssons with A.T.D. In relation to this project, the Bank has indicated it is now prepared to lend to regional institutions and inferred an interest in participating in the financing of the roads subject to their economic and technical soundness and the working out of problems relating to borrowing authority and guarantors. The analysis contained in this paper and the subsequent loan agreement :ihould resolve many of these issues. A.I.D. has also indicated it would be prepared to make a contribution toward the construction financing. The LCBC is approaching other donors, including FAC and FED, for a contribution toward the financing of these roads. D. Other Sources of Financiing As indicated above, the World Bank has expressed an interest in participation in the financing of construction of these roads. In addition the Bank is considering the financing for the Mora-Maroua segment of the third road contained in the study. These roads will all form part of an improved transportation network in the Lake Chad Basin area. The Bank is currently financing construction of the N'Gaoundore (raihefd) - Garoua section which will provide one of the links in the Cameroon north-south axis leading into the Chad Basin area. FED, FAC, A.I.D. and Cameroon are financing the railroad to N'Gaoundere. Because of the regional nature of this project which has a regional institution as a borrower, it is particularly appropriate for A.l.D. financing in keeping with its assistance policy for West Africa. E. Reaj1yient Prospects Primary responsibility for repayment under the loan will rest with the LCBC. However, since the LCBC has no assets of its own from which repayment can be met, it will look to its member countries for repayment. A condition of the loan will require the member countries to act asi guarantors for the loan with joint and several re.-ponisibil.ity for repayment as primary obligors with the LCBC. The allu)catfon of contributions for repayment among the coLuutrie3 will be a condition precedent to dtsbursemet under this loan. A formula based on a calculation of benefits to the individual countries will be worked out by the LCBC and agreed to by the member states. However, whatever the allocation of debt results, based on the analysis presented in Annex N, we conclude that both Nigeria and Cameroon have adequate debt servicing capacity to make prospects for repayment reasonable and that while Chad's financial position is less optimistic, it should be able to meet whatever Its obligation would be under this allocation of -23 contribution. Niger is unlikely to be called upon to cun tribute to the repayment since .it does not benefit Vra. the project. However, Niger's financial position would pcnrit a contribution. At any rate the signatories of"1,ie loan agreement will have joint and several responsibility for repayment of the loan and we conclude that prospects for repayment of the loan from the guarantors are reasonable. V. ECONOMIC EFFECTS OF TI LOAN A. Impact on U.S. Economy This loan does not conflict with any U.S. business interests. To the contrary, the loan will assist the U.S. economy by financing approximately. $1,000,000 in U.S. engineering services. While Code 941 countries will be eligible, it is expected that only U.S. finns will be ab1e to provide Lhe services needed. B. Effect on Private Enterprise The loan will finance a contract between the LCBC and a private U.S. engineering finn. In addition it will TUe ~o further contracts for construction which will be made with private firms including possibility U.S. firms. C. Impact on U.S. Balance of Payments The$1,O0,O00 of U.S. gucds and services represent additional exports for the U.S. since without, the proposed AID catn, it is likely that engineering serbvices would be procuredi elsewhere. The financing of an estimated $300,000 in local costs will have a minimum effect on the balance of payments. VI. IMPACT ON THE ENVIRONME.P The proposed roads will not penetrate virgin land areas but will basically follow the present existing roads or tracks between-the centers of population. The terrain along the roads is generally flat with vegetation varying Crom small growvths of trees and marshland growth to barren sandy areas .,rith practically no vegetation. There will be a minimum of change to the existing environment by the construction of such roads, however as the mater.iA[:; required Por -24 construction will be excavated from borrow areas adjacent to the routes, precautions will be taken to require the contractor to re grade the borrow areas to blend in with the natural surroundings. As the scope of services for the "Transport Study" did not require the consultant to identify the environmental impact, such requirements will be included into the scope of services for engineering design. These requirements will consist of (1) making a study of the proposed road and ferry crossing of the Logone river between Bongor and Yagoua to determine the effects of such road crossing on the regime and character of the river during floods and to determine the stability of the proposed road foundations to be constructed within the flood plain, and (2) issuing the necessary instructions for consideration of any adverse environmental effects which were not identified in the "Transport Study." -25 AI-LO.;/e_ I.- . .- \\, ,. ,:AN 7U / V" CHAD I NIGERIA S/CAMEROUN GU EWl (' MOR -O I moTI AR if LEGEND LELN01 .~ M~ll KALfX I IR MAyD -ALGUIDIGUIS I I'L'JALA "o-tA ".., .", , ( , . . ESIIMATED 1969 CON,11 I , ,,.Al I ( AVERAGE DAILY TRAFFIC FLOW IN(.ItI.AV ; LE fFFAf - I lk It% IA.'; ll t'l p,, t I ci1 ItCT,$,A f 0" ,.I, TRAFFIC QUOTIDIEN MOYEN f ESTIME POUR 1969 AID.DLC/1-i 020 ANN"-X 13 FORT FOUREAU - FOTOKOL ROAD TRAFFIC SURVEY - NOVEMBER 10.15, 1969 AVERAGE DAILY TRAFFIC (ADTI Estimated Traffic Survey Not Week survey Avg Polled ADT Station Mon Tue Wed Thu Fri Sat Tot Fort ii)1 poure au 89 118 80 84 96 79 546 91 20 50 12 62 Gambaru 40 67 57 35 58 45 302 52 "77 J.29 Maiduguri 7? 58 30 41 57 56 314 AID-DLC/P- 102C ANNRX C PORT POUREAU - VOTOKOL ROAD PROJECTED VOLUME OF TIROUG TRAMP GEM1AL CARGO ,MRUM Load Annual Percent Load Annual Percent Annual per No. Veh. of Annual per No. Vh. of Viay One Way Shipmnts Tong Veh. One Year Vehicle Type Shipments Tons Veh. Without Road Improvement Low Estimate High Estimate 3P,100 7.5 5,080 34,575 7.5 4,610 75 1976 Two-Axle Careo Trucks75 532 15 7,620 13.0 586 Above with '[railer 15 6,915 13.0 231 10 5,0OM 20.0 254 emti-Tmilnr 'Pruck 10 4,610 20.0 50,800 5,9 o TOTAL 46,100 5,373 7.5 6,720 75 57,825 7.5 7,710 1986 'Ivo-Axle G'rgo Trkct75 50,400 775 15 11,565 13.0 B90 Above Yrith 'ailer 15 10,080 13.0 10 7,710 20.0 386 Semi-T'niler Truck 10 6,720 20.0 336 77,100 B, 926 ', 67,200 7, R31 7.5 11,240 !095 Pw'io- Ax- l e C rgo Trucks75 60,300 7.5 8,040 75 84,300 15 16,860 13.0 1,297 Above ,.-th Trailer 15 12,060 13.0 928 562 Ti-IrailrTruck 10 8,040 20.0 402 10 11240 20.0 112,400 13,099 TOTA 80,40 9,370 With Road Improvements Low Etimate Ifigh Estimate (The same as without improv 19'7' (The name ao winhout improvement) 60 46,260 7.5 6,168 1, 6 ' ,o-Axle Cargo Truck 60 40,320 7.5 5,376 19,275 13.0 1,483 Above .,rith Trailer 25 16,00 13.0 1,293 25 11,565 20.0 57P emi-T_'al er Truck 15 10,080 20.0 504 15 8,229 TOTAL 67,200 7,173 77,100 60 67,440 7.5 8,992 1995 Two-Axle Cargo 'Tuck 60 48,240 7.5 6,432 25 28,100 13.0 2,162 Above with '!'railer 25 20,100 13.0 1,546 843 Semi-Trailer 1Truok 15 12,060 20.0 603 15 161860 20.0 11,997 TOTAT, O, 400 P,581 112,400 FORT pOUEA - POTOKOL ROAD PROJECTED VOLUTIE OP THROUGH TRAPPIC PEIROLEUM TRUCKS Percent Load Annual Percent Load Annual of Annual per No. Veh. of Annual per No. Veh YeW Vehicle Type Shipments Tons Veh. One Way Ohipments Tons Veh. One Way.. Without Road Improvement Low Estimate High Estimate 1976 Two-Axle Truck 20 11,780 9.3 1,267 20 13,140 9.3 1,413 Above with Trailer 40 23,560 15.9 1,482 40 26,280 15.9 1,653 Semi-Trailer Truck 40 23.560 21.9 1,075 40 26,280 21.9 1,200 TOTAL 58,900 3,824 65,700 4,266 1986 Two-Axle Truck 20 19,060 9.3 2,049 20 24,440 9.3 2,628 Above with Trailer 40 38,120 15.9 2,397 40 48,880 15.9 3,074 Semi-Trailer Truck 40 38,120 21.9 1,741 40 48,880 21.9 2,232 TOTAL 96,300 6,187 122,200 7,934 1995 Two-Axle Truck 20 26,880 9.3 2,890 20 37,600 9.3 4,043 Above vwith Trailer 40 53,760 15.9 3,381 40 75,200 15.9 4,730 Semi-Tiailer Truck 40 53,760 21.9 2,455 40 75,200 21.9 3,434 TOTAL 134,400 8,726 188,000 12,207 With Road Improvement Low Estimate High Estimate 1976 (The same as without improvement) (The same as vithout improve ment) 1986 Two-Axle 'ruck 10 9,500 9.3 1,022 10 12,220 9.3 1,314 Above with Trailer 45 42,900 15.9 2,698 45 54,990 15.9 3,458 Semi-Trmiler Truok 45 42,900 21.9 12959 45 54,990 21.9 2,511 TOTAL 95,300 5,679 122,200 7,283 1995 Two-Axle Truck 10 13,400 9.3 1,440 10 18,800 9.3 2,022 Above vrith Trailer 45 60,500 15.9 3,805 45 84,600 15.9 5,321 Semi-Trailer Truck 45 60,500 21.9 2,763 45 84,600 21.9 3,663 TOTAL 134,400 8,008 188,000 11,206 I.2. FORT IOUREAU - FOTOKOL ROAD PROJECTED VOLUIE OF THROUGH TRAFFXC LIGI!T VEIICLE LOW ESTIMATE LIG] E8TIMATE Growth Growth Rate Light Vehicle Rate Light Vehicle Percent Annual Volume Percent Annual Volume Year Per Yr. Two Way Per Yr. Two Way 1f69 2,220 2,220 3.5 4.0 1976 2,825 2,921 4.0 4.5 1.!, 4,182 4,536 3.0 3.5 1 9c5 5,455 6,182 w3m AID..DLC/P. 1.020 ANNd-X I) FORT FOUREAU . FOTOKOL ROAD PROJECTED LOCAL TRAFFIC 1976 1986 1995 1969 Annual Annual Annual ADT Trips Trips Trip s Fotokol.Ferry Landing 5 2,117 2,719 3,413 Other.Ferry Landing 3 1,270 1,632 2,048 Fort Foureau.Ferry Landing 15 6,351 8,158 10,238 Fort Foureau.Fort Lamy 16 6,774 8,702 10,921 Other.Fort Lamy 4 1,694 2,175 2,730 Rates to Base Year 1.16 1.49 1.87 Agricultural surplus, Deficit, Imports 1969 (tons) 1976 1986 1995 Agricultural Surplus 24,806 28,775 36,961 44,457 Agricultural Deficit 2,212 2,566 3,295 3,466 Imports 1,600 1,856 2,384 4,300 Total Tons 27,898 3?, 197 42,640 52,223 Rates to Base Year 1.16 1.49 1.87 AID.DLC/P- 1020 ANNEX E FORT FOUREAU . FOTOKOL ROAD SUMMARY OF PRCOSCTSD TRAFFIC Without Road Improvement High Estima Year Traffic Type Low Estimate 8,532 1976 Petroleum Trucks 7,648 General Cargo 10,746 11,840 Through Light Vehicles 2,825 2,921 Local Trips 18,206 18,206 TOTAL ANNUAL VOLUME 39,425 41,499 PRQJSCTED ADT 108 114 15,868 1986 Petroleum Trucks 12,374 General Cargo 15,662 17,972 Through Light Vehicles 4,182 4,536 Local Trips 23,386 23,386 TOTAL ANNUAL VOLUME 55,604 61,762 PROJECTED ADT 152 169 24,414 1995 Petroleum Trucks 17,452 General Cargo 18,740 26,198 Through Light Vehicles 5,455 6,182 Local Trips 29,350 29,350 TOTAL ANNUAL VOLUME 70,997 86,144 236 PROJECTED ADT 195 With Road Improvement 1976 (The same as without improvement) 14,566 1986 Petroleum Trucks 11,358 General Cargo 14,346 16,458 Through Light Vehicles 4,182 4,536 386 Local Trips 23, 386 23, TOTAL ANNUAL VOLUME 53,272 58,946 161 PROJECTED ADT 146 22,412 1995 Petroleum Trucks 16,016 General Cargo 17,162 23,994 Through Light Vehicles 5,455 6,182 Local Trips 29,350 29,350 TOTAL ANNUAL VOLUME 67,983 81,938 PROJECTED ADT 186 224 AID-DL/P- 1020 ANNEX F FeORT R'OM1lAI - b.TOKOL 11O0M) NET BENIEPITS (Low Estimate) Inoremen- Savings Svilsn tal value in by added in Total Road R{onde jvT. (crops net v.Period Maintenance ( Users & livestock) benefits Jan-'ec 1975 Jan-Doe 1976 Project; Conrotruct;ion Period Jn-JIe 1977 1017F 36,210 427,862 7,012 471,084 9 . 36,620 446,551 14,110 497,281 -434,210 191 466,035 21,250 53 37,430 486,344 28,475 552,249 37,940 507,516 35,742 581,198 1 .qF-A 38,450 529,583 43,095 1.1"4 611,128 38,960 552,583 50,490 642,033 1C:5 -431,770 ( 576,552 57,970 202,752 I 39,780 601,532 65,492 706,804 41,210 627,564 73,100 741,874 43,350 655,177 80,750 779,277 44,780 674,404 88,485 807,669 46, 210 694,196 96t262 '091 836,66, -423,6102_ 714,570 164,125 395,005 49,030 735,541 112,030 896,601 50,490 757,130 120,020 927,640 51,000 779,352 128,095 958,447 51,510 802,228 136,212 989,950 52,020 H25,777 144,415 1022,212 52,530 850,082 151,810 1,054,422 _ The Coonltant's report shows benefits commencing in 1976. The current Ai.mplementation plan as shown in Section II estimates completion of construction il m id-1977. Urnder this assumption, benefits have been caloulated to oommorco i.i 1978, hut at the same level an the Consujltantlo 1976 estimates. To the oxtent I;e Iraffic levels are actually higher in 1978, tho benefits would be slightly ii nd ero ta ted. j 1C].ines r.urfacing, costs. FORT FOUHEA11 - FOTOKOL ROAD NET BEIMfITS (High Estimate) Inoremen- Svintre Savlxng3 tal value in by added in Total 'Time Rload load Agr. (orops net Period Maintenance Users & livestock) benefits (Dollnrs) Tan-D)c 1974 ) .1In--ec 1975 Year "0" Project Construction Period Jan-Ty. 1976 1977 36210 464,571 7,012 507,802 197h 36,620 4( 9,024 14,110 539,754 1979 -434,210 514,764 21,250 101,804 1980 37,430 541,861 28,475 607,766 19I1 37,940 570,388 35,742 644,070 1q82 38,450 600,421 43,095 681,966 191,3 38,960 632,040 50,490 721,490 1904 -431,770 665,328 57,970 291,528 1915 39,780 100,376 65,492 805,648 19f6 41,210 737,279 73,100 851,589 19P7 43,350 771,740 80,750 895,Rz0 44,780 805,188 88,485 938,453 19u9 46,210 840,123 96,262 982,595 1990 -423,610 H76,612 104,125 557,127 1001 49,030 914,723 112,030 1,075,783 1992, 50,490 954,534 120,020 1,125,044 1993 51,000 996,117 128,095 1,175,212 1991 51,510 1,039,554 136,212 1,227,276 1995 52,020 1,0'4,929 144,415 1,281,364 I99i3 52,530 1,129,787 151,810 1,334,127 I_/ The Consultant's report shows benefits commencing in 1976. The current implementation plan as shown in Section II estimates completion of construction .i '-id-1977. Under thin assumption, benefits have been calculated to commence iu 19718, but at the same level an the Consultant's 1976 estimates. To the extent the traffic levels are actually hig:Ier in 1978, the benefits would be slightly und3 erstated. AID.DLC/P- 1020 ANNEX G PORT FOUR SAUPYOOL ROAD USER OPERATING COSTS (Per Kilometer) Vehicle Type Paved Road Gravel Road Earth Road Auto .041 .050 .064 Light Trucks .056 .063 .089 Two Axle Cargo Trucks .115 .161 .244 Two Axle Cargo Trucks with Trailer .158 .228 .368 Semi.Trailer Truck .163 .238 .387 i_/ Calculations are given at what is considered the optimum running speed for each type road which is as follows: Paved Road - 80 km/hr; Gravel Road - 72 km/hr; Earth Road - 56 km/hr. AID-.DLC/'P- 1020 ANNSX H FORT FOURI'AU - FOTOKOL ITETNAL IIA'Ti' Gi? RE RU1. Low Eti.atetc Unscounted Vntue Discounted V.ltun ' "r I' !i;rit Cotn Not BRenli. ,' nt t f3% Con UL ione:its Coob Benofi ts, (Pi tlimmnud,! of do.la rn) aT: , 319 2,16 2, 147 197' 2,319 2,O24 1,9,7 1c9' 1,1 60 94' 921 107/ 471 359 346 197 497 354 338 " t3 35 33 1C"1 552 344 322 5 I 33fi 314 611 332 306 19 642 326 297 10; 203 96 87 19.*5 707 314 281 I , 74? 30f'; 273 4' 780 303 265 1"; 0 292 255 ,37 V 214 244 3(.)5 125 106 I9t) 897 266 224 1993 '20 257 215 95 247 206 Ono 240 197 1996 1,022 231 188 199! 1,054 222 179 "OAt 5,131 5,273 5,055 4,697 +135 -350 'J,r, present value of benefits (less discounted costs) are $135,000 at 7% r-n.! rLmm $135b,000at ,,,.By interpolation, the estimated internal rate of v'e;1i:ryi :z 7.3r. FORT 1ouIMEi" - POTOKOL INTIRNAL RATE OF RETURN Ifigh Estimate Discounted Value Discounted Value Tbn(r Period Costs Ilet Benefit at 8f at 9 Coots Benefits Coots Benefits (Ii 1;housands of do.larm3) 1975 2,319 2,147 2,126 1976 2,319 1,987 I,952 1977 1,160 921 895 1 'I78 50p 373 360 1979 540 368 351 1 :;1) 102 64 61 1 608 354 333 19 -.644 348 323 1983 682 341 314 1984 721 334 304 1935 292 125 113 1986 806 319 287 197 852 312 278 198r, 896 304 267 1 89 938 295 258 1090 983 2A7 248 1991 557 150 129 1992 1,076 269 228 19'3 1,125 261 218 1994 1,175 253 209 1995 1,227 244 201 1996 1,281 236 192 1997 1,334 - 227 - 184 C'OTvAL 5,055 5,464 4,973 4,85S +409 -1 15 The net present value of benefits (less dimotunted costs) are $409,000 at; 41 ,vid t.inus 115,000 at Py.]r interpolation, the estimated internal rate of retimir is 8.81. .2. AID.DLC/P. 1020 ANNSX I MAGADA . BONGOR ROAD TRAFFIC SURVEY AVERAGE i AILY TRAFFIC (ADT) NOV1EMBER 9.15, 1969 Survey Station Sun Mon Tue Wed Thurs Fri Sat Total Avg i/ ADT Kaele 57 77 75 74 84 95 75 537 76.7 11 88 Lara 53 58 63 51 84 98 58 405 66.4 29 95 Yagou a (West) -5 45 39 48 34 54 5U 295 42.1 6 48 JANUARY 23-29, 1970 Survey Station Fri Sat Sun Mon Tue Wed Thurs Total Avg. . ADT Kaele 96 85 58 90 79 88 75 571 81.6 12 94 Lara 107 88 70 96 86 82 89 618 88.3 13 101 Kalfou 37 21 17 21 25 22 21 164 23.4 4 27 Yagoua (West) 44 37 29 40 59 48 52 309 44.1 7 51 Yagoua (Police Post) 27 17 22 20 22 31 35 174 24.9 2 27 Bongor 101 106 71 104 109 127 115 733 104.7 3/ 1/ Estimated number of vehicles not interviewed. 2/ Includes vehicles on routes other than study route. / Sum of traffic approaching intersection from three directions. AID.DLC/P. .10,90 ANNEX J VMICLE{ TYPE ON MAGADA.EBONGOR ROAD Lara Counting Station First Survey Second Survey_ Avera e No. No. Total Vehicle Type Veh. % Veh. , Veh..* Auto 81 17.4 108 17.5 189 17.5 Light Truck 135 29.0 147 23.8 282 26.0 Two Axle Cargo Truck 132 28.4 203 32.8 335 30.9 Two Axle Cargo Truck with Trailer 85 18.3 113 18.3 198 18.3 Semi.Trailer Truck 32 6.9 47 7.6 79 7.3 465 100.0 618 100.0 1083 100.0 AID.DLC/P. i oo ANN HX K MAGADA. BONGOR ROAD SUMMARY OF PROJECTED TRAFFIC LOW ESTIMATE Year Kaele Lara Yagoua 1076 Through 994 1,530 1,530 Local 34620 17,009 19,649 Total 35,614 18,539 21,179 ADT 98 51 58 1986 Through 1,541 2,371 2,371 Local 48,903 231048 27,699 Total 50,444 25,419 30,070 ADT 138 70 82 1995 Through 2,130 3,278 3,278 Local 71,005 36,757 40,406 Total 73,135 40,035 43,684 ADT 200 110 120 HIGH ESTIMATE Year Kaele Lara Yagoua 1976 Through 1,179 1,820 1,820 Local 36,975 18.580 21,009 Total 38,154 20,400- 22,829 ADT 105 56 63 1986 Through 1,981 3,047 3,047 Local 61,590 32,639 35,(092 Total 63,571 35,686 38,139 ADT 174 98 104 1995 Through 3,091 4,760 4,760 Local 91,108 51,149 52,073 Total 94,202 55,909 56,833 ADT 258 153 156 AID.DLC/P. 1020 ANNEX L MAGADA - BONGOR ROAD NET BENEFITS Savings Savings Incremental in by Value Added Total Net Time Road Road in Period Maintenance Users i/ Agriculture Benefits (Dollars) Jan-Dec 1975 Jan.Dec 1976 ) Project Construction Period Jan.June 1977) 467,428 197 y 197 53,151 288,834 125,443 1079 54,016 301,857 246,701 602,574 inb0 -639,717.2/ 315,492 400,101 75,876 19t'I 56, 139 329,779 550,175 936,093 1982 57,420 344,745 709,354 1111,519 1983 59,689 360,424 878,123 1,298,236 1984 63,076 376,854 1,056,988 1,496,918 1985 68,010 394,068 1,246,486 1,708,564 1Q86 .622,869Y-/ 412,110 1,447,174 1,236,415 1987 73,676 4?5,018 1,656,640 2,155,334 1988 74,980 450,476 1,884,499 2,409,955 1969 77,379 472,078 2,122,398 2,671,855 2,950,732 1990 82,323 494,395 2,374,014 1991 86,7OR, 517,768 2,640,057 3,244,533 2,860,107 1992 .603,472.2/ 542,247 2,921,332 1993 93,392 567,885 3,218,440 3,879,717 1994 95,252 55,057 3,532,379 4,225,688 1995 97,255 622,956 3,8631948 4,584,159 1996 103,207 k2 ,310 4,213,871 4,969,388 1997 109,718 683, 089 4,331,999 5,124,806 , Average of high and low estimates. J The Consultant's report shows benefits commencing in 1976. The current implementation plan as shown in Section II estimates completion of construction in mid.977. Under this assumption, benefits have been calculated to commence in 1978, but at the same level as the Consultant's 1976 estimates. To the extent the traffic levels are actually higher in 1978 the benefits would be slightly understated. / Includes resurfacing costs. AID.DLC/P. 1020 ANNEX M MAGADA. ,ONGOR ROAD INTERNAL RATE OF RETURN Discounted Value Discounted Value Time Net at i0M at 11% Period Costs Benefits Costs Benefits Costs Benefits (thousands of dollars) 1975 4547 4133 4092 2976 4546 3754 3686 1077 2273 1707 1661 1Q78 467 319 308 1079 603 374 358 1980 76 43 41 1981 936 480 451 19C? 1112 519 481 1963 1298 550 508 10b* 1197 578 527 108r, 1709 598 542 10b6 1236 394 353 1987 2155 625 554 1.988 2410 634 559 1989 2672 639 55b 1990 2951 643 554 190 ] 3245 642 551 l ou 2860 512 438 1903 3880 636 535 190.1 4226 630 524 1995 4584 619 509 1996 4969 611 496 1997 5125 574 466 9594 10,620 9439 9313 +1026 .126 The net present value of benefits (less discounted costs) are &1,(?6,000 at 107, and a minus ,1'26, 000 at I],. 13y interpolation the estimated internal rate of return is lo. 9%. AID-DLC/P- 1020 ANNEiX N UEPAYNENT PROSrPiCFTS OF LCBC MDIBER STATES CAM.EROON dcononic developments in Cameroon have continued to be favorable over the past five years. The growth rate of the Gross Domestic Product (GDP) has averaged 5. 3 percent per annum for the 1965-69 period, with the last two years somewhat higher, probably around 7 percent, chiefly due to favorable export prices. Still, the Government will have to rely on external assistance for a major portion of public investment as it has in the past. While :ameroon's external public debt has increased rather rapidly, anounting to ',i83 million at the end of March 1970, financing terms have been rel:itively favorable. The debt service in 1969 was ,7.U million representing only about .4- of the total debt including the undisbursed amounts. In relation to export earnings which are generally a good indication of a country' s debt servicing capacity, the debt service approximated a very modest 3 percent. (iExport earnings in 1969 totaled 5229 million). This latter debt service ratio is projected to rise to 6.5 per cent in 1975/76 taking into account service on existing and estimated new public debt. This forecast is still not very high and it would appear that prospects of repayment from Cameroon are favorable. N G RIA Nigeria has emerged from its civil war with a commendable record of monetary and fiscal management. Iler resource base is intact although the war did interrupt the growth of the economy. Nigeria's 10-71 development postilates that the rate of GDP growth will risk! from less than 5 percent in 1.970/71 to 9 percent in 1973/74. At 'he end of 1060, Nigeria's total external public debt out standing amounted to 661 millior; about 66 percent of which was dJisbursed. Of the total, about 48 percent is from other govern anents, 36 percent from international organizations, and 16 percent privately held. U.S. Government loans total ' 76 million or about 11.5 percent of the total. service repayments on this outstanding debt are estimated at "65 million in 1970, declining to '50 million in 1975 and 37 million in 198O. The estimated service payments for 1970 amount to approximately 7 percent of export earnings (total non-oil merchandise exports plus net petroleum contribution to balance of payments). This ratio will. probably decline in the immediate future due to very rapid growth of net oil sector contribution to the balance of payments. lowever, later in this decade after the very rapid growth of the petroleum industry has slowed down, this ratio will probably increase. Iven so, a generally favorable ratio to export earnings should continue indicating reasonable prospects of the loan repayment on the part of Nigeria. CHAD Chad in recent years has been undergoing some political upheaval, but appears now to have regained stability. With a return to political stability long-term, prospects for development hold some promise. There are good possibilities for the livestock sector and further expansion of cotton production, the chief export product and foreign exchange earner. However, the balance of payments has always shown a deficit on trade which has largely been financed by foreign assistance grants from France. Since 1966 the Government's current account has been in deficit. To finance these deficits, Chad has accumulated commercial and debt service arrears and has relied on external assistance. Chad will for some time be unable to contribute to the cost of developIent and will need continued external assistance to finance current deficits including the liquidation of arrears. Any government contribution to the cost of develop ment projects will increase the need for assistance to cover current deficits so that on a net basis investment will have to be entirely financed by external resources. Therefore foreign donors should be prepared to finance a high proportion of project costs and foreign aid will need to cover a large part of local cost expenditures. At the end of 1069 Chad's total external debt outstanding amounted to rio million, of which ,33 million was disbursed representing 66 ;ercent of the total. Debt service in 1969 was ,3.O million. rhis, represented a little under lr,. of total export earnings which :ndlicates Chad's debt service has not been overly burden. some. if external assistance continues to be provided on favorable terms as recommended-it is reasonable to assume thait Chad could meet its contribution for debt service repay ment under the current loan. In 1969 Niger's total debt was 37.8 million with debt service estimated at -0.5 million. The debt service ratio is 2.4 percent. The proposed loan is unlikely to add to the debt service of Niger. Although it is a guarantor under the loan, no benefits are likely to accrue from the project and it is expected Niger will not be called uPon for any of the repayment. rven so, within the context of the franc zone and the historic trade and support relations between Niger and the Common Market countries, parti cularly France, it is reasonable to expect that Niger will retain adeqi ate domestic and foreign reserves and have an annual budget sufficient to finance external obligations if they are continued on favorable terms. .2. ANNEX 0 CIICKLIST OF STATUTORY CRITERIA DEVELOPMEN4T LOAN FUND I. COUNTRey PERFORMANCE A. Progress Towards Country Goals 1. FAA f2ol(b) 5, 20](b)(7), ?Ol(b)(8), 20B. Discuss the extent to which the country is: (a) Making appropriate Bach of the Member States efforts to increase food is implementing projects to production and improve incesefod production. means for food storage This is a primen targetin and distribution. Nigeria's Second National Development Plan. Niger is cooperating with the Entente States in grain and livestoc projects. Chad and Cameroon have joint livestock project and each are concentratin-go increased rice production. (b) Creating a favorable Each country has liberal climate for foreign and pol ies for the promotion domestic private enterprise of private enterprise and and investment, encourages both foreign and domestic investment. (c) Increasing the people's Each country has rural role in the developmental development programs, parti process. cularly related to agricul. ture to try to increase production which will assist in exports and also to improve the life style. (d) Allocating expencdtures The level of military to development rather than expenditures in the Member to u~necessary military States is limited to that purpQ.ses or intervention required to assure internal in other free countries, order and stability. affa-irs, *As used herein, the term "country" shall mean the countries of Cameroon, Chad, Niger and Nigeria. These countries comprise the Member States of the Borrower, the Lake Chad Basin Commission. (e) Willing to contribute The Member States will funds to the project or contribute to the logistic program. support of the Contractor. Nigeria is using its own resources to finance the Maiduguri.-Gambaru road which will tie into the project. (f) Making economic, social, The Member Stites generally and political reforms such have programs concerned with as tax collection improve. more efficient control of ments and changes in land government spending, a more tenure arrangement; and equitable tax base and more making progress toward effective tax collection. respect for the rule of Nigeria has a wide number law, freedom of expression of newspapers and one of and of the press, and the freest in Africa. recognizing the importance Private enterprise is of individual freedom, encouraged. initiative, and private enterprise. (g) Responding co the The countries are attempting, vital economic, political, through the building of a and social concerns of its resource base by increasing people, and demonstrating export crops, through a clear determination tc regional development pro. take effective self-help grams, and agricultural measures. projects at the village level, to effectuate economic and social reforms for the improvement of living standards. . Relations with the United States 1. FAA §620(c). Is the govern. None to our knowledge. ment indebted to any U.S. citizen for goods or services furnished or ordered where: (a) such citizen has exhausted availble legal remedies, including arbitration, or (b) the debt is not denied or contested by the government, gr (c) the indebtedness arises under such government's, or a predecessor's unconditional guarantee? .2. 2. FAA 6620(d). If the loan Not applicable. is intended for construction or operation of any productive enterprise that will compete with U.S. enterprise, has the country agreed that it will establish appropriate procedures to prevent export to the U.S. of more than 20r, of its enter. prise's annual production during the life of the loan? 3. FAA §620Cej_(1 ! . la: the No. country's government, or any agency or subdivision thereof, (a) nationalized or expropriated property owned by U.S. citizens or by any business entity not less than 505 beneficilly owned by U.S. citizens, (b) taken steps to repudiate or nullify existing contracts or agreements with such citizens or entity, or (c) imposes or enforced discriminatory taxes or other exactions, or restrictive maintenance or opera tion conditions? If so, and more than six months has elapsed since such occurrence, identify the document indicating that the government, or appropriate agency or subdivision thereof, has taken appropriate steps to discharge its obligations under international law toward such citizen or entity? If less than six months has elapsed, what steps if any has it taken to discharge its obligations? 4. FAA(620(j). Has the country No. permitted, or failed to take adequate measures to prevent, the damage or destruction by mob action of U.S. property, and failed to take appropriate measures to pre. vent a recurrence and to provide adequate compensation for such damage or destruction? .3. 5. FAA §620(1,. Has the Yes. The existing government instituted an agreement in Nigeria investment guaranty program is currently being under FAA 221(b)(1) for the renegotiated. specific risks of inconverti. bility and expropriation or confiscation? 6. FAA A620(o). Fisherman's No. Protective Act of 1954, as amended, Section -%. las the country seized, or\imposed any penalty or sanction against any U.S. fishing vessel on account of its fishing acti. vities in international waters? If, as a result of a seizure, the U.S.G. has made reimburse. ment under the provisions of the Fisherman's Protective Act and such amount has not been paid in full by the seizing country, identify the documenta. tion which describes how the withholding of assistance under the FAA has been or will be accomplished. 7. FAA §620(qr. Has the No. country been in default, during a period in excess of six months, in payment to the U.S. on any FAA loan? 8. FAA §620(t). liave diplo. No. matic relations between the country and the U.S. been severed? if so, have they been renewed? C. Relations with Other Nations and the U.N. 1. FAA §620 i). Has the country No. been oficially represented at any international conference when that representation included planning activities involving insurrection or subversion directed against the U.S. or countries receiving U.S. assistance? -4 2. FAA 6§620(a); 620(n). No. ilas the country sold, furnished, or permitted ships or aircraft under its registry to carry to Cuba or North Viet.Nam items of economic, military, or other assistance? 3. FAA 6620(u); App. §108. To the best of our knowledge, What is the status of the the member countries are up country's U.N. dues, assess- to date on their UN dues, ments, or other obligations'? assessments or other obli. Does the loan agreement bar gations. Yes, the loan any use of funds to pay U.N. agreement limits thv usu of assessments, dues, or loan funds) for the tipecific arrearages? project. D. Military Situation 1. FAA 620(i). las the No. country engaged in or pre pared for aggressive military efforts directed against the U.S. or countries receiving U.S. assistance? 2. FAA §620(S). What is (a) (a) Ni(jer ia SplondinQ .%tX)ut the percentage of the country's 17ar but is seeking to zvdu:, budget devoted to military this fiqjur, (sev () b,,low. purposes, and (b) the amount of Chad, c2uneruon, .1ijur" gel 411 the country's foreign exchange range around I ,. (b). I-of resources used to acquire mili. the Francophon,, couiitrlo3, tary equipment'? Is the country most i lIitary oqeltII...li I= diverting U.S. development provided throujh -rtch assistance or P.L. 480 sales assistance; Ii ,.,,ill,wt to military expenditures? Is their forvign uxci.atge. A 11) the country diverting its own ustimates; that ,|uLi11J tl - resources to unnecessary military last yuAr of the wia , iJboul expenditures? Has the country 2r,,4 of NifgeriA', for'. tijn spent money for sophisticated! oxchallgq uxponldituruo w016 weapons systems? for lailit~ry 1,Ulrpu0.. NigoriA iu ,ut ,Ivv* a. . t),..,, A.tistinco tO mt illt. y #. JlonJituit . It i% t11W (SOc larid policy of 1110 P.4" iflcsC thu '.ii' of the warI tu rodu(ule it I I twry axpa.n1 I turor and th levol of At-tv-1 t(O1e=b pur onnu 1. (c) ) , (No.1 , I (i) No. Therv la tis ov , K, thAt Niuvria hawt 0440 O"Y 4w t procuromant its th- )xi voat, A. IE~eaSoundness Interest and RLepayment I. 'FA §20l(d), 2ul(b)(21. The rate of interest is no Is the rate of interest excess- excessive or unreasonable. ive or unreasonable for the The grace period is 10 yea borrower? Are there reasonable at 2% interest and 3% prospects for re|,ayment? What interest during the remain is the grace period inter7est ing 30 years. The rate of rate; the following peLiod interest is less than the interest rate? Is the rate of Member States' %pplicable interest higher than the legal rate of interest. country's applicable ]0.gJ rate of inLerest? Financing 1. FA'kolfb)ii). To what Financing from other free extent can financing on world sources, including reasonib]e terms be obtained private sources within the from other (r,,.vorhild sources, U.S., is not available. incIl i n)) i ratq t;ourcs Sep. Section IVD of CAP. within the (I. S.? iconoio: i:J '(-chnical SourIdi1esS - and 1. FAA _ 0l(0b 1.1. 1i Yes. See Sections I] The -ct.ivity' s ecoroi'c .Atr(j ill of CAP. technical t;oundnes, to uiilde itake loan ; :Ioo; th Isa A l ic.- ;.ion, toget'.v %with in cffnxm,xt on mi . stir .Linc, ¢ , ardi a te that fu,inds wa I L Gou - .i an ,cofloic; '! ly and tv: tini.cal ly soulJi ian: '? II and . ', ,'-J (a)iL}_. -' Yes. See Sections enc-ino-tri.,U, ft11anc.a.l,' ind and IV of CAP. othegr ,lth, e:. ;, ) t') carry out ,,b',istance , and re,.:-,ona] y firm eP tiniate of the *,o-t o Assis tance to the lbS. , complIe ted,., .,XA t-lI1)v Ap;. (Iui. Not ap).,licable. if the lo:1n or grant :is for a water or re I ited construction i)ro.j,2ct k;r projrA11, do p1,r" i nc l.u1,le. c- t...l)O l' i t. ro w, ut,-i ii.-x ': i)..e : th1-1h, ro" n.: : Or)pr0( jr ;kll In'oet th(: I.c:' .n U . S . ,o Iks t ruk. t ion t and.A I,(]t; tnd crit:ria USO('I i.n de .nai;iiingoL feasibi] ity? 4. FAA §611(e). If this is Yes. a Capital Assistance Project with U.S. financing in excess of ;1 million, has the principal A.I.D. officer in the country certified as to the country's capability effectively to main. tain and utilize the project? B. Relation to Achievement of Country and Regional Goals Country Goals 1. FAA 6§2o7, 281(a). Describe this loan's relation to: a. Institutions needed for This project is important a democratic society and to in providing transportation assure maximum participation between different areas of on the part of the people in the region, and aiding in the task of economic develop, the agricultural production ment. of the area. It creates greater mobility of people and greater access to the services of the government. b. Enabling the country to This project directly meets meet its food needs, both these needs. see Section from its own resources and I.B. of CAP. through development, with U.S. help, of infrastructure to support increased agri. cultural productivity. c. Meeting increasing need Design and construction work for trained manpower. on these road projects will pass on skills to indivi. dual member countries involved in the work of the project. d. Developing programs to Better transportation can meeting public health needs, be useful in providing medi. cal and public health care through increased accessi bility of areas. -7. e. Assisting other impor. Adequate transportation tant economic, political, is a vital necessity for and social development all the types of develop. activities, including ment noted. By serving a industrial development; regional area, it will growth of free labor help knit the countries unions; cooperatives and together and enhance the voluntary agencies; overall development of each. improvement of trans. portation and communi. cation systems; capabi lities for planning and public administration; urban development; ani modernization of existiLng laws. 2. FAA §20l(b)(4). Describe It directly relates to activity,'s consistency with agricultural activity and and relationship to other develop, contributes to its growth. ment activities, and its contri. See Sections I.B. and III bution to realizable long.range of CAP. objectives. 3. FAA §201(b)(9). How will This directly leads to the activity to financed increased agricultural contribute to the achievement production as shown in of self.sustaining growth? Section III of CAP. 4. FAA f2ol(f). If this is See Sections I.B. and III a project loan, describe how of CAP. such project will promote the country' s economic development, taking into account the country's human and material resource requirements and the relation. ship between ultimate objectives of the project and overall economic development. 5. FAA §201(b)(3). In what See Section III of CAP. ways does the activity give reasonable promise of contri. but ing to development of economic resources, or to increase or productive capa. cities? 6. FAA 6281(b). How does the Better transportation will program under which assistance provide the opportunity is provided recognize the for the various regions particular needs, desires, and to have greater contact capacities of the country's and exchange and thus people; utilize the country's contribute to a better intellectual resources to understanding of the encourage institutional various areas and the need development; and support to work together in a civil education and training regional effort. It will ii.skills required for also strengthen the LCBC effective participation in as a regional institution political processes, which can promote the economics and political harmony of the area. 7. FAA §601(a ) . Ilow will This project will directly this loan encourage the encourage international country's efforts to: (a) trade among the member increase the flow of inter, states and by improved national trade; (b) foster transportation and lower private initiative and com- costs aid exports to other petition; (c) encourage countries. Improved development and use of transport will also enhance cooperatives, credit unions, the efficiency of industry, and savings and loan asso agriculture and commerce; ciations; (d) discourage permit the small farmer to monopolistic practices; (e) better utilize more pro. improve technical efficiency ductive tools and to market of industry, agriculture, and his produce. commerce; and (f) strengthen free labor unions? 8. FAA §22(a). Indicate the The entire loan will be amount of money under the loan used to procure goods and which is: going directly to services from private private enterprise; going to enterprise. intermediate credit institu. tions of other borrowers for use by private enterprise; being used to finance imports from private sources; or other. wise being used to finance procurements from private sources. 9. FAA §611{(a(2). What legis. None required. lative action is required within the recipient country? What is the basis for a reasonable anti cipation that such action will be completed in time to permit orderly accomplishment of purposes of loan? -- Regional Goals 1. FAA §619. If this loan Multilateral organizations is assisting a newly independent are contributing to the country, to what extent do the transportation sector in circumstances permit such this area. AID's contri. assistance to be furnished bution will help develop through multilateral organi- this overall sector and zations or plans? is particularly useful to building up the LCBC, a regional institution.. 2. FAA §209. If this loan is This loan directly supports directed at a problem or an a regional institution whose opportunity that is regional aim is to promote the in nature, how does assistance development of the region. under this loan encourage a See Sections I.B. and C. regional development program? and 1.11 of CAP. What multilateral assistance is presently being furnished to the country? C. Relation to U.S. Economy -- Employment, Balance of Payments, Private Enterprise 1. FAA §§201(b)(6).; 102, Fifth. There is no special appli What are the possible effects cability in reference to of this loan on U.S. economy, areas of substantial labor with special reference to areas surplus. See Section IV of substantial labor surplus? of CAP for other questions. Describe the extent to which assistance is constituted of U.S. commodities and services, furnished in a manner consistent with improving the U.S. balance of payments position. 2. FAA §§612(b), 636(h). What No foreign currencies owned steps have been taken to assure by the U.S. Government are that, to the maximum extent available or could be used possible, foreign currencies for the implementation of owned by the U.S. and local this project. The member currencies contributed by the states will provide logistic country are utilized to meet support and the LCBC will the cost of contractual and assist the project within its other services, and that U.S. budgetary limitations. foreign.owned currencies are utilized in lieu of dollars? 3. FAA §601(d); APP. 1109. The loan agreement res. If this loan is for a capital tricts procurement of project, these to what extent has services to Code 941 coun. the Agency encouraged utili- tries, which includes zation the of engineering and U.S. Loan agreement contains professional services of U.S. standard AID clause in firms and their affiliates'? regard to third.country If the loan is to be used to nationals. See Section finance direct costs for con. IV.A. of CAP. struction, will any of the contractors be persons other than qualified nationals of the country or qualified citizens of the U.S.? If so, has the required waiver been obtained? 4. FAA §608(a). Provide The loan agreement contains information on measures to the standard AID clause in be taken to utilize U.S. this regard. Government excess personal property in lieu of the procurement of new items. 5. FAA $602. What efforts AID procedures will have be been made to assist U.S. followed to provide notice small business to participate of intended procurement equitably in the furnihiing to U.S. small business. of commodities and services financed by this loan? 6. FAA §621. If the loan Not applicable. provides technical assistance, how is private enterprise on a contract basis utilized? If the facilities of other Federal agencies will be utilized, in what ways are they particularly suitable; are they competitive with private enterprise (if so, explain); and how can they be made available without undue interference with domestic programs? 7. M46.11(), If this Not.app1icable. loan Involves a contract for construction that ob. ligates in excess of t100, 000, will it be on a competitive basis? If not, are there factors which make it impracticable? . Procurement 1. FAA §602(al. Will commodity Yes. procurement be restricted to U.S. except as otherwise determined by the President? 2. FAA §604(b). Will any part No. of this loan be used for bulk commodity procurement at adjusted prices higher than the market price prevailing in the U.S. at time of purchase? 3. FAA §604(e). Will any part No. or tnis Loan ne used ror oro curement of any agricultural commodity or product thereof outside the U.S. when the dom. estic price of such commodity is less than parity? Other Requirements 1. FAA §201(b). Is the country In view of the regional among the 20 countries in which character of the project, development loan funds may be the loan falls outside this used to make loans in this fiscal limitation. year? 2. App. §106. Does the loan Yes. agreement provide, with res pect to capital projects, for U.S. approval of contract terms and firms? 3. FAA §6P0(k). If the loan Not applicable. is for construction of a pro. ductive enterprise, with res. pect to which the aggregate value of assistance to be furnished will exceed loo million, what preparation has been made to obtain the express approval of the Congress? .12. 4. FAA §620(b), 620(f); App. Yes. 109(b). Has the President determined that the country is not dominated or controlled by the international Communist movement? If the country is a Communist country (including, but not limited to, the coun. tries listed in FAA §620(f), and the loan is intended for economic assistance, have the findings required by FAA §620(f) and App. §109(b) been made and reported to the Congress'? S. FAA §62U0h). What steps have The loan agreement contains been taken to insure that the the standard Alb clause in loan will not be used in a manner this regard. which, contrary to thebest interest of the United States, promotes or assists the foreign aid projects of the Communist. bloc countries'? 6. App. §11o. Will any funds No. be used to finance procurement of iron and steel products for use in Viet.Nam other than as contemplated by §110? 7. FAA §636(1). Will any part No. of tils loan be used in financing non1..5._nanufactured automobiles? If so, has the required waiver been obtained? -J 8. FAA §§620( a)(1) and (2), No. 620(p); App. § 117. Wil1 any assistance be furnished or funds made availzble to the government of Cuba or the United Arab Republic? 9. FAA §620(g), Will any No. No such assistance has part of this loan be used to been used for this purpose. compensate owners for expro. priated or nationalized property? If any assistance has been used for such purpose in the past, has appropriate reimbursement been made to the U.S. for sums dive r ted? 10. FAA §201(f). If this The Member States, private is a project loan, what pro- enterprise will have an visions have been made for opportunity to contribute appropriate participation by some services and in the the recipient country's construction phase additional private enterprise? goods and services through supplies of local material, labor and other services. 11. App. 104. Does the loan Yes. The loan agreement agreement bar any use of funds limits the use of loan to pay pensions, etc. for funds for the specific persons who are serving or who project. have served in the recipient country's armed forces? 12. NAA Sec. 90l.b. Does the Yes. loan agreement provide, for compliance with U.S. shipping requirements, that at least 50W of the gross tonnage of all commodities financed with funds made available under this loan (computed separately by geographic area for dry bulk carriers, dry cargo liners, and tankers) be transported on privately owned U.S.,flag commercial vessels to the extent such vessels are available at fair and reasoiiable rates for U.S. flag vessels? .34 AID.DLC/P.. 020 ANNEX P LAKE CHAD BASIN COCmmISSION - TWO ROAD LINKS CERTIFICATION PURSUANT TO SECTION 611(e) OF THE FOkaIGN ASSISTANCE ACT OF 1961, AS AMENDED I, Charles R. Grader, A.I.D. Area Development Officer for the Central African region, with responsibility for A.I.D. relations with the Lake Chad Basin Commission, do hereby certify that in my judgment the Lake Chad Basin Commission and its member countries will have the financial capability and the human resources capability to implement, maintain, and utilize effectively the subject project. This judgment is based on the facts, inter alia, that: 1. The Commission and member countries have given road transport and maintenance a high priority in their development plans. 2. Past performance of the member countries in maintaining and utilizing successfully capital assistance provided under other A.I.D. projects. Charles R. Grader AID-DLC/P- 1020/A Draft ANNEX Q CAPITAL ASSISTANCE LOAN AUTHORIZATION Provided from: Development Loan Funds Africa Regional: Lake Chad Basin Commission - Two Roads Links Pursuant to the authority vested in the Assistant Administrator for Africa of the Agency for International Development ("A.I.D.") by the Foreign Assistance Act of 1961, as amended, and the delegations of authority issued thereunder, I hereby authorize the establishment of a loan pursuant to Part 1, Chapter 2, Title I, the Development Loan Fund, to the Lake Chad Basin Commission ("Borrower") of not to exceed One Million dollars ($1,000,000) 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, subject to the following terms and conditions: 1. Interest Rate and Terms of Repayment The Borrower shall, in United States dollars: (a) Repay the loan to A.I.D. within forty (40) years, including a grace period of not to exceed ten (10) years. (b) Pay A.I.D. interest on the unrepaid principal and any interest accrued thereon at the rate of two percent (2%) per annum during the grace period and three percent (3%) per annum thereafter. 2. Other Terms and Conditions (a) Goods and services financed under this loan shall have their source and origin in any of the Member States of the Borrower and/or in countries included in Code 941 of the A.I.D. Geographic Code Book. (b) Such other terms and conditions as A.I.D. may deem advisable. Assistant Administrator for Africa Date