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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY a Public Disclosure Authorized Report No. 2298-GM THE GAMBIA Public Disclosure Authorized HIGHWAYMAINTENANCE PROJECT STAFF APPRAISAL REPORT Public Disclosure Authorized March 30, 1979 Public Disclosure Authorized West Africa Region Highways Division This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contentsmay not otherwisebe disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit - Dalasi US$1.00 - Dalasi 2.00 FISCAL YEAR July 1 - June 30 SYSTEM OF WEIGHTS AND MEASURES: BRITISH/US British/US Metric 1 foot (ft) = 0.305 meter (m) 1 mile (mi) = 1.61 kilometers (km) 2 1 square mile (sq mi) 2.59 square kilometers (km ) 1 ton (long toi) = 1.016 metric tons (m ton) ABBREVIATIONS AND ACRONYMS EDF - European Development Fund EEC - European Economic Community GPA - Gambian Port Authority GPMB - Gambian Produce Marketing Board FRG - Federal Republic of Germany MFT - Ministry of Finance and Trade MEP - Ministry of Economic Planning and Industry MWC - Ministry of Works and Communications NTS - National Transport Study ODM - Overseas Development Ministry (UK) PWD - Public Works Department RPT - RPT Economic Studies Group (Consultants, UK) UNDP - United Nations Development Programme USAID - United States Agency for International Development voc - vehicle operating costs vpd - vehicles per day WSA - Wilbur Smith and Associates (Consultants, USA) FOR OFFICIAL USE ONLY THE GAMBIA HIGHWAY MAINTENANCE PROJECT STAFF APPRAISAL REPORT TABLE OF CONTENTS Page No. I. THE TRANSPORT SECTOR ...................................... 1 A. Geographic and Economic Factors Influencing Transport 1 B. The Transport System ..... ...................... 1.... C. Transport Policy, Planning and Coordination .... ..... 5 D. Past Bank Group Assistance in the Sector .... ........ 7 II. THE HIGHWAY SUBSECTOR .................... 7 A. The Highway Network ................................. 7 B. Traffic and Road Transport Industry ................. 9 C. Administration ...................................... 11 D. Staff and Training ................... 11 E. Highway Planning .................. .................. 13 F. Highway Financing .................. ................. 13 G. Engineering ...... ............... .................... 15 H. Maintenance ...... ............... .................... 16 I. Construction ...... .............. .................... 17 J. Use of Appropriate Technology .... ...................18 III. THE PROJECT .............................................. 18 A. Background ....... .............. ..................... 18 B. Objectives ...... ............... ..................... 19 C. Description ...... ............... .................... 19 D. Project Cost and Financing . .. 23 E. Project Implementation ............... ............... 25 F. Procurement .... 28 G. Disbursements ....................................... 28 IV. ECONOMIC EVALUATION ....................................... 30 A. Introduction ................. 30 B. Road Maintenance Program .............. .............. 31 C. Distribution of Benefits .............. .............. 32 D. Project Risks and Sensit:LvityAnalysis . 32 V. AGREEMENTS REACHED AND RECOMMIENDATION .......... .......... 34 This report has been prepared by Messrs. D. Jovanovic (Economist) and S. I. Majtenyi (Engineer) following an appraisal mission in June/Julyl978. This documenthas a restricteddistribution and maybe usedby recipientsonly in the performance of their official duties.Its contentsmay not otherwisebe disclosedwithout World Bankauthorization. TABLE OF CONTENTS (Continued) Page No. ANNEXES I Traffic Characteristics of Principal Roads in 1977 and Roads Selected for the Maintenance Program . 36 2 Composition, Costs and Expected Output of Routine and Backlog Periodic Road Maintenance Units; Operating Costs and Equipment Renewal Plan; Government's Total Expected Contribution to Road Maintenance; and Summary List of Equipment to be Purchased .......... ...................................38 3 Cost Estimates, Net of Taxes ............ ..............43 4 Outline Terms of Reference for Technical Assistance to the Public Works Department (PWD) in the Ministry of Works and Communications ........................... 44 5 Outline Terms of Reference for Preparing the Follow-up Road Maintenance Study ...... .......................... 48 6 Outline Terms of Reference for Aggregate Exploration Study ............................................... 51 7 List of Documents Available in Project File ........... 53 MAP IBRD 13701 R THE GAMBIA HIGHWAY MAINTENANCE PROJECT STAFF APPRAISAL REPORT I. THE TRANSPORT SECTOR A. Geographic and Economic Factors Influencing Transport 1.01 The Gambia consists of a narrow, east-west strip of land some 30 to 50 km wide along the banks of the Gambia River. The country extends about 350 km inland from the Atlantic and is surrounled by Senegal. A population of about 540,000 in an area of about 11,3002km gives The Gambia the fourth highest population density in Africa (48/km ). The population is growing at about 2.8% p.a. and about 4.2% p.a. in the capital of Banjul. Economic growth has been slow during the recent past, averaging about 2.6% p.a. in real terms, nearly the same as the population growth rate. Consequently, gross domestic product (GDP) per capita, about US$180 in 1976, has remained stagnant over the past three years. 1.02 The economy is based mostly on traditional rural smallholder activ- ities. Agriculture, livestock and fisheries account for 70% of GDP and employ about 90% of the active population. Agriculture is based on groundnuts, the only cash crop. Groundnuts constitute about 90% of the total value of ex- ports and are the basis of the country's major industrial activity, groundnut oil milling. Economic activity in The Gambia reflects its structural weak- ness, namely low productivity in the rural sector, wide seasonal fluctuation in output and employment, and extreme vulnerability to variations in ground- nut prices and production levels. The Government is trying to increase pro- ductivity and to diversify the economy in order to reduce its dependence on groundnuts. The cultivation of irrigated rice along the Gambia River, cotton in the east, and vegetables around the urban areas has started. The Government is also promoting tourism by providing infrastructure, participating in the equity of some tourist hotels, and granting tax holidays. 1.03 Economic performance, however, continues to be dominated by the performance of the groundnut sector. In FY1976, higher prices and yields caused an upturn after the Sahel drought. In FY1977, lower groundnut prices drove real GDP and exports down; this trend continued in FY1978 when groundnut production declined further as a result of erratic rainfall. Long-term pros- pects for groundnuts are not favorable in The Gambia. Projected decreases in groundnut prices together with an increase in the cost of imports are likely to cause a substantial deterioration in The Gambia's terms of trade and a deficit in its foreign trade balance. B. The Transport System 1.04 The transport system consists of about 3,100 km of roads, the Gambia River, a deepwater port at Banjul, a small river port at Kaur and an international airport at Banjul. The system appears to have been developed -2- to a generally adequate degree in terms of connecting the main areas of economic activity, and facilitating the movement of exports and imports, which move mainly through the port of Banjul. The Gambia River is navigable by ocean freighters up to 3,000 dead weight ton (dwt) to the inland groundnut port of Kaur (230 km upstream). The road network, whose main arteries parallel the river on both banks, consists of about 300 km of paved and 800 km of gravel or earth roads, plus about 2,000 km of tracks. An important paved north-south link plus ferry crossing on the Gambia River in the middle of the country serves Senegalese traffic moving across The Gambia between northern and southern Senegal. Nine other ferry crossings serve as important links, traversing the Gambia River or its tributaries. There is no railway or domestic air transport in The Gambia. 1.05 Transport demand derives primarily from (i) the seasonal movement of groundnuts from field to depot and thence to the processing plant for extracting the oil before export; (ii) the movement of imported general merchandise, fertiliser, and rice from the port of Banjul upcountry; (iii) Senegalese traffic crossing The Gambia; and (iv) passenger flows, primarily between Banjul and villages upcountry. In 1977, exports, with significant annual fluctuations, amounted to 105,000 tons, while imports totalled 170,000 tons after growing over 10% p.a. since 1969. Internal commodity flows are estimated at 46 million ton-km in FY1977 or about 570,000 tons. About 75% of downcountry commodity flows travel by river, while 80% of upcountry move- ments are made by road, resulting in somewhat unbalanced flows and lower load factors in both modes. The transport of imports by the river and downcountry flows by roads should be encouraged. The Gambia Produce Marketing Board (GPMB) could have an important role in improving the balance of traffic flows (para. 1.10). Nearly all passenger flows are by road and they are estimated at about 280 million passenger-km per year. Traffic flows are presented on page 3. (a) Highways 1.06 Details of the highway sub-sector are discussed in Chapter 2. (b) Ports 1.07
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