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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 4330-SE Public Disclosure Authorized STAFF APPRAISAL REPORT SENEGAL FIFTH HIGHWAY PROJECT Public Disclosure Authorized February 10, 1984 Public Disclosure Authorized Western Africa Projects Department Tran Rportati on Di vi si on I 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. CURRENCYEQUIVALENTS Currency Unit = CFA Franc (CFAF) US$1 = CFAF 373 CFAF 1 m = US$ 2,681 ABBREVIATIONSAND ACRtONYMS CCCE - Caisse Centrale de Cooperation Economique DER - Direction de l'Entretien Routier DERM - Direction de l'EntretienRoutier et du Materiel DGTP - Direction Generale des Travaux Publics DM - Direction du Materiel BPP - Bureau des Pistes de Production RF - Fonds Routier vpd - vehicles per day FISCAL YEAR July 1 - June 30 FOR OFFICIALUSE ONLY SENEGAL FIFTH HIGHWAY PROJECT STAFF APPRAISAL REPORT TABLE OF CONTENTS Page No. I. INTRODUCTION. ... .. .. 1 II. THE PROJECT...... ......... 3 A. Objectives . .................. ........... 3 B. Description .. ............................ 4 C. Cost Estimates ............. 6 D. Financing ..... 8 E. Procurement under the Project.... 9 F. Disbursements. ..... 9 G. Reporting and Reviews .... ........................10 III. EXECUTING AGENCY ....... ............................10 A. Organisation ....... ............................10 B. Staff ..........................................11 C. Equipment .............................................12 D. Planning and Cost-Accounting ................ ... 12 E. Procurement ................... .......................... 13 IV. ECONOMIC EVALUATION ................................. 14 A. Traffic .......... ............. 14 B. Road Conditions .. .......................... 15 C. Road Maintenance Coats .................... a... 15 D. Vehicle Operating Costs .** ..................... 15 E. Rates of Return and Benefit-Cost Ratios ........16 F. Project Risks .................................. 16 V. AGREEMENTS REACHED AND RECOMMENDATION ... ...........16 This report was prepared on the basis of an appraisal mission in September 1982, by Frida Johansen and Snorri Hallgrimsson. It was typed by Guillemette Rohan. This document has a restricteddistribution and may be used by recipientsonly in the performanceof their official duties. Its contents may not otherwisebe disclosedwithout WorldBank authorization. ANNEXES 1-1 Road Network - Developmentand Present Distribution,and Summary Road Conditionsby Region 1-2 Network Maintained, FY1977-1982 1-3 Road MaintenanceExpenditures and Funding, FY1977-1982 1-4 Fuel Price Structure 1-5 Past/OngoingBank Group Transport Operations 2-1 MaintenanceProgram, FY1984-1987 2-2 PrevisionsTrimestrielles des Depenses 2-3 Road MaintenanceManagement System - Flow Chart 2-4 Controle Depenses et RenouvellementCaisses d'Avance 2-5 Project Commitmentsand Expendituresthrough the Road Fund and Project Account, FY84-87 2-6 Projected Quarterly Disbursementsof IDA Credit 3-1 Organigrammede la Direction Generale d.esTravaux Publics 3-2 Systeme de Gestion de Reparationdu Xat6riel 3-3 Systeme de Programmationet de Planificationde l'EntretienRoutier 4-1 Traffic Levels and Growth Rates on Main.Road Sections by 1981 4-2 Network to be Maintainedand Expected Condition 4-3 Road MaintenanceProgram Costs per Task, 1983/87 4-4 MaintenanceProgram Economic Evaluation MAP Senegal: Fifth Highway Project - Transport Infrastructure1983 (IBRD Map No.16850) - iii - Senegal Fifth Highway Project DOCUMENTS CONTAINED IN THE PROJECT FILE File Code A. Selected Reports and Studies on the Transport Sector Al. Plan National de Transport: Rapport Final, June 1981 Doc.#124.520 (F) A2. Inventaire Routier 1981, April 1981 Doc.#125.671 (L) A3. Rapport sur le comptage routier, July 1981 Doc.#120.971 (F) B. Selected Reports relating to the project B1. Campagne d'entretien routier 1981-82: Bilan Annuel, August 1982 Doc.#129.156 (6) B2. Plan quadriennal d'entretien routier 1983-1987, February 1983 Doc.#129.156 (7) B3. Plan de campagne d'entretien routier 1983-1984, June 1983 Doc.#129.156 (10) B4. S6minaire sur la gestion de l'entretien routier, April 1979 Doc.#120.917 (D) B5. Journees d'6tude sur la gestion des caisses d'avances, February 1982 Doc.#125.671 - iv - REPUBLIC OF SENEGAL FIFTH HIGHWAY PROJECT CREDIT AND PROJECT SUMMARY' Borrower: Republic of Senegal Amount: SDR 20.4 million (US$21.5million equivalent) Terms: Standard Project Description: The primary project objective is to assist the Senegalese Government to carry out urgently needed maintenance operations on its road network so as to avoid a severe deteriorationof the network. Related objectives are to keep an adequate balance between maintenance and new road constructionand to further improve the efficiency of the road maintenance organizationalready strengthenedunder earlier Bank Group operations,including the decentralized financialand cost accounting systems, and planning and monitoring of maintenanceactivities. The project would support the Directorateof Road Maintenance and Equipment's program over the four-yearperiod 1983/84-1986/87as follows: (a) routine maintenanceof about 9,100 km of roads in the first year, increasing to about 10,500 km by the fourth year, includingmaintenance of feeder roads; (b) periodic maintenance (repavingand regravellingof road surfaces and rehabilitationof structures)as warranted on roads maintained under (a) above; and (c) deferred periodic maintenance of other paved and gravel roads neglected in recent years because of the Government'sinability to adequately fund the necessary operations. The project would also increase the use of regional revolving funds to promote local administration. In the spirit of the Special Assistance Program (SAP) disbursementswould be substantially front-loaded. Benefits and Risks: The project would yield high benefits and economic returns to Senegal by delaying the need for new investments in rehabilitationworks and by allowing reduced vehicle operating costs, with a consequen-tialoverall positive effect on the balance of payments. This latter result is particularlysignificant at a time when Senegal, after making good progress in recent years in building up the operating performanceof its maintenanceorganization to the point where it has become one of the most efficient in West Africa, now finds itself unable to sustain this progress because of its very tight budgetary situation. There are no major risks arising from the institutional arrangements for project execution. There is, however, a risk that the Government's budgetary situation may not improve sufficiently over the project period to enable it to assume an increasing responsibility for financing maintenance operations. If this were the case, external assistance would continue to be sought as a priority to ensure an adequate level of maintenance operations. The adequacy of financing will be carefully considered by Government and IDA during a detailed mid-term review of the status of project implementation and its financing. ProjectCost Szmary CFAFmillion US$ thousand Fbreign % of Local Local Foreign Local Local Fore.ign Exchange Base Component Cost Tax Cost Total Cost Tax Cost Total % of Total Cost Road equipment 125 - 2,386 2,511 335 - 6,397 6,732 95 17 Spareparts 5 - 95 100 13 - 255 268 95 1 Workshop equipment 25 - 475 500 67 - 1,273 1,340 95 3 155 - 2,956 3,111 415 - 7,925 8,340 21 Periodicmaintenance: Ritmen roads 657 860 1,011 2,528 1,761 2,306 2,711 6,778 40 17 Gravelroads 1,421 772 1,869 4,062 3,810 2,069 5,011 10,890 46 27 2,078 1,632 2,880 6,590 5,571 '4,375 7,722 17,668 44 Routinemaintenance: Bitumenroads 719 32B 515 1,562 1,928 879 1,381 4,188 33 10 Gravel roads 1,783 780 867 3,430 4,780 2,091 2,325 9,196 25 23 2,502 1,1c8 1,382 4,992 6,7C8 2,970 3,706 13,384 33 Ferry operation, etc 64 152 184 400 171 4C8 493 1,072 46 2 Sub-total 4,799 2,892 7,402 15,093 12,865 7,753 19,846 40,464 100 Price contingencies 1,387 717 1,422 3,526 3,719 1,922 3,812 9,453 23 Total 6,186 3,6C9 8,824 18,619 16,584 9,675 23,658 49,917 48 123 Financing Plan: The proposed IDA Credit of US$21.5 million equivalent would finance about 43% of project costs of the national road maintenance program as foreseen f'or FY84 to FY87, covering 65% of costs until the end of FY85, 30% in FY86 and 25% in FY87. Further external support f'or the latter years is being sought; however, if funds remain insufficient, program and funding revisions would be made at the mid-term review. - vi - Estimated Disbursements: -US$ million------ FY84 FY85 FY86 FY87 Annual 2.0 11.3 4.7 3.5 Cumulative 2.0 13.3 18.0 21.5 Economic Return: Over 100% for the project as a whole. For the more costly periodic maintenance elements, the return is estimated at 25% for full regravellingand 86% for resurfacing. The B:C ratio is about 2:1. I SENEGAL FIFTH HIGHWAY PROJECT STAFF APPRAISAL REPORT I. INTRODUCTION 1.01 Senegal has a fairly well developed transport system concentrated in the Cap Vert peninsula and the groundnut basin, which are the areas with the largest populations and economic activity. The transport system comprises a 1,032 km railway, 14,000 km of roads including 3,500 km paved; a deepwater, protected port at Dakar and three secondary ports; and an international airport at Dakar and a network of smaller domestic airports. 1.02 Some 95% of all domestic transport in Senegal is done by road. Senegal's road network (Annex 1-1) forms the densest paved network in West Africa; over the last 10 years, with relativelyimpressive investments,the road network has also become one of the best in West Africa: paved roads increased from some 2,250 km to 3,500 km, and all weather gravel roads increased from some 2,300 km to 5,500 km. Some 20% of the paved roads are less than 5 years old and 40% less than 10 years. This compares to 4,000 km of paved roads in Ivory Coast and 2,000 km in Cameroon,which have GNPs four and two times respectivelythe size of Senegal's,and larger land areas.
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