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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Report No.7848-BU Public Disclosure Authorized STAFF APPRAISAL REPORT REPUBLIC OF BURUNDI Public Disclosure Authorized TRANSPORT SECTOR PROJECT FEBRUARY 28, 1990 Public Disclosure Authorized Infrastructure Operations Division South-Central and Indian Ocean Department Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Currency Eqauavlent Currency Unit Burundi Franc (F6u) USS 1 FBu 156 !ejjhte and Measures 1 kilometer (km) = e.62 mile 1 quare kilometer(k*2) a e.a86 sq.ile Oloeary of Abbreovtiotnsand Acronym AfDB Aft Scan Development Baitk AGCD Adm.nistration GAn6rale de la Coop6ration au D6veloppoment (Belgian Aid Agency) BEI Budget Extreordinaire et d'Inveetistsment (Investment Budget) sO Budget Ordinaire (Recurrent BudGet) BRB Banque de la R&publique du Burundi (Central Bank) CCCE Caisse Centrale de Coop6ratton Economique (French Aid Agency) CGR Cellule do Gestion Routire (Road Planning Unit) CIF Cost Insurance Fret DAF Direction Administrative et Financi4re(Department of Administration and Finance) DOR Direction G6n6raledes Routes (General Directorate for Roads) DOT Direction On6raledesTransports, Postes etT4l6communications (Gerkeral Directorate for Transport, Posts and Telecommunications) DSm Dar-es-Sa leam DTE Direction Technique do I'Exploitation (Department of Maintenance) DTEC DirectionTechnique dos Etudes et Contr8l- (Department of Design and Control) EEC European Economic Comiimunity EF Entreprise publique (public enterprise) EPI1 Explo;tation du Port do Bujumbura FAC Fonds d'Aide et de Coop6ration (French Aid Fund) FED Fondo Europeen do Development(European Development Fund) GTZ Aid Agency of the Federal Republic of Germany 14DM Hlghway D"ign and Maintenance Model INTRACO International Transport Company kfW Kreditanstalt fuer Wiederaufbau (Federal Republic of Germany Aid Fund) LNTP Laboratoire National dee Travaux Publics (National Laboratory of Public Works) MAE Ministhre d I Agriculture et de I 'Elevag (Ministry of Agriculture and Livestock) MTPDU Minist&r- dos TravauxPublics et du Dlveloppent Urbain (Ministryof Public Works and Urban Development) MTPT Ministbre dos Transports, Postes et T&lIcommunicotions (Ministry of Transport, Posts and Telecommunications) NCTA Northern Corridor Transit Agrement OTRABU Office des Transports du Burundi (Freight Transport Company) OTRACO Office dos Transports en Commun(Passenger Transport Company) PEP Public Expenditure Program FIU Project Implemntation Unit PTA Pr-fereni.ial Trade Agreement SAL Structural Adjustment Lending SETEtU Municipal Technical Services SME Small- and Medium-Scale Enterprise SOE Statementof Expenditure SRD Soci6ti R6gionale de DHveloppsment (Regional Development Company) TRC Tanzania Railways Corporation VOC Vehicle Operating Cost vpd Vehicle per day Fiscal Year JanuaryI - December31 FOR OMCIAL USE ONLY BURUNDI Transport Sector Proiect STAFF APPRAISALREPORT Table of Contents Page No. Credit and Project Sunmmary I. THE TRANSPORT SECTOR A. Geographic and Economic Setting ..... ................... B. The Transport Sector ........ .. ....... 2 (i) Main Policy Issues and InstitutionalConstraints.. 2 (ii) The TransportSystem....... 3 C. The Road Sector. ......... 7 (i) The Network. ..... 7 (ii) Road Use. ........ .. 9 (iii) OrganizationalStructure, Staffing, Training .... 11 (iv) Financingand Road User Charg es . 12 (v) Planning. r. ..... ... 13 (vi) Engineering,Construction and Maintenance ....... 14 D. Past Bank Group Involvementin the Transport Sector .... 15 TTI THE PROTWVT Objectives............. .....................................18 A. Transport Component ...... ................. ........... 18 B. Road Component .* .............. ...... ... 19 (a) Road Rehabilitatioaand MaintenanceProgram ......20 (b) Rehabilitationand Maintenanceof Coffee Roads ... 21 (c) InstitutionalStrengthening ........ ..............22 (d) FeasabilityStudy for an Equipment-RentingPool ... 25 C. Cost Estimates ............................................ 25 D. Economic Justificationof the Project .. ...............2: E. Project Financing . .. ...........................o ..... 27 F. Implementationand Procurement ......................... 28 G. Disbursement........................................... 30 H. Accounting,Auditing and Reporting Requirements........ 31 I. EnvironmentalAspects ....................o............. 32 J. Poverty AlleviationAspects ........................ 33 This report is based on the findings of an appraisalmission which visited Burundi in January/February1989; members of the missions were J.J. Raoul (HighwayEngineer), E. Bidaux (ResearchAssistant), B. Bostrom (Sr.Transport Economist), J.M. Lantran (Sr. Construction Industry Specialist),C. Lyle (Financial Analyst) and P. Taborga (Sr. Urban Economist). C. Tran-Luu (Consultant - Training Specialist) and J. Bui (Research Assistant) also contributedto the report. B. Chatelin (Sr. Economist)was lead Advisor for the appraisal team. This documenthas a restricteddistribution and may be used by reciDientsonly in the performance of their officialduties. Its contents may not otherwisebe disclosedwithout World Bank authorization. - ii - PasteNo. III. ECONOMIC EVALUATION A. General ...................oo 34 B. Area of Influenceof the Project, Benefitsand Beneficiaries........* ...... ***............. 34 C. EconomicAnalysis of the Project ...................... 35 D. Risks o*oo.***o. o**.o***... ..... .o.... .. o..o.- 36 IV. AGREEMENTSREACHED AND RECOMMENDATIONS......................... 38 Annexes I. Transport Statistics 1. Distributionof InternationalTraffic by Route 2. Traffic in the Port of Bujumbura 3. Traffic of Air Burundi and at the BujumburaInternational Airport 4. StatisticalMotor Vehicle Fleet 5. Fuel Consumptionand Prices 6. EstimatedRoad TrafficVolumes II. Regional Distributionof the Road Network III. TransportSector Expenditures 1. Expendituresin the Highway Subsector 2. Expendituresin the TransportSector (Roads excluded) 3. TransportSector Debt vs ExternalPublic Debt 4. Public ExpenditureProgram for the Highway Subsector (1989-1991) IV. Revenues from Road User Charges V. Rehabilitationof Earth/GravelRoads - List of Roads VI. Periodic Maintenanceof Paved Roads - List of Roads VII. List of Road EquipmentRequirements and Acquisition VIII.TORs for Technical Assistance for Management of Road Operations and Training in DGR IX. TORs for TechnicalAssistance in DGT X. TORs for the Road PlanningUnit XI. TORs for TechnicalAssistance to the ControlUnit XII. TOREsfor the FeasabilityStudy of an Equipment-RentingPool XIII.TORs for studies in DGT XIV. EconomicAnalysis 1, EstimatedVehicle Operating Costs .. SummaryTable of the EconomicEvaluation of the Road Project XV. Project ProgressReporting Requirements XVI. Statementof SectoralPolicy XVII.RelatedDocuments and Data AvailableIn Project File Charts 1. Organizationof MTPDU 2. Organizationof MTPT 3. Project ImplementationSchedule Mapn IBRD 21189: Great Lakes Region InternationalSurface TransportConnections IBRD 21660R Burundi, Transport Sector Project, Road System - iii - BURUNDI TRANSPORTSECTOR PROJECT Credit and Project Summary Borrower: Republic of Burundi Beneficlaries: Ministry of Public Works asid Urban Developmerst (MTPDU) and Ministry of Transport,Posts and Telecommunications(MTPT) AMunt:s SDR 32.7 million (US$ 43.2 million) Termss Standard IDA Terms Prolect Objectives: The project'l objectives are to: (i) reform transport sector policies to promote greatercompetition and price liberalization; (ii) develop planning capabilitieswithin MTPDU and MTPT; (iii) consolidate,expand and improvemaintenance practices, institutions and funding in the road sector includingsupport for starting up the participation of the private sector in road maintenance activitiesand upgrading a selected road to paved standards;and (iv) provide support to coffee productionen-d marketing through re-hablitnt4tnar"d maintenance of acces& roads to the coffee productionareas. These objectivesare fully consistentwith the Government'sadjustment program implementedwith IDA support. Proiect Description: The projectwill cover roads and transport,the responsibilityof which is split between two ministries: MTPDU and MTPT. At appraisal,a four-yearproject (1990-1993)was designedto meet the country's prioritieswith pledges confirmed by donors during a Round Table held in Bujumburain April 1989. It would have two componentsas follows: (i) institutionalsupport to the GeneralDirectorate for Transport (DGT)including (a) technicalassistance to assist in creating a transport data base, monitoring internationaltransport, preparing adequate sector policies and reforming transport parastatals;(b) training;and (c) subsector-relatedstudies and a provisionto financepriority transportinvestments to be identifiedduring the above studies. (ii) a four-year road rehabilitationand maintenance program including(a) periodicand routinemaintenance of paved roads; (b) limited upgrading, rehabilitationand maintenance of unpaved roads of the main network, an increasingportion of which will be contracted out; (c) rehabilitation and maintenanceof coffee roads; (d) subsector-relatedstudies; and (e) institutionalstrengthening through the creation - iv - within the General Directorate for Roads (DOR) of a Road Planning Unit and of a Control Unit for MaintenanceWorks, technicalassistance and training.
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