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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1226 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR362.5 MILLION Public Disclosure Authorized (US$500 MILLION EQUIVALENT) TO THE THE REPUBLIC OF KENYA FOR AN EASTERN AFRICA REGIONAL TRANSPORT, TRADE AND DEVELOPMENT FACILITATION PROJECT (SECOND PHASE OF PROGRAM) Public Disclosure Authorized May 21, 2015 Transport and ICT Global Practice 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 EQUIVALENTS (Exchange Rate Effective March 31, 2015) Currency Unit = Kenyan Shillings (KES) KES92.75 = US$1 US$ = SDR 0.72 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS AADT Average Annual Daily Traffic AC Asphalt Concrete AfDB African Development Bank AU African Union BPSOPs Border Post Standard Operating Procedures COMESA Common Market for Eastern and Southern Africa CSO Civil Society Organizations DA Designated account DBM Dense Bitumen Macadam DBST Double Bituminous Surface Treatment DRC Democratic Republic of the Congo EAC East Africa Community EATTFP East Africa Trade and Transport Facilitation Project EIB European Investment Bank EIRR Economic Internal Rate of Return ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Monitoring Framework ESMP Environmental and Social Management Plan EU European Union FM Financial Management GAP Governance and Integrity Improvement Action Plan GDP Gross Domestic Product GoK Government of Kenya GRM Grievance Redress Mechanism GRS Grievance Redress Service GRSS Government of the Republic of South Sudan HIV/AIDS Human Immunodeficiency Virus Infection/Acquired Immune Deficiency Syndrome HoA Horn of Africa IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding ICTA Information and Communication Technology Authority ICM Integrated County Management ICT Information and Communication Technology IDA International Development Association IFMIS Integrated Financial Management System IFR Interim Un-audited Financial Reports IGAD Intergovernmental Authority on Development ITS Intelligent Transportation System JICA Japan International Cooperation Agency JIMC Joint Inter-Ministerial Committee KeNHA Kenya National Highway Authority KeRRA Kenya Rural Roads Authority KES Kenyan Shilling KfW German Bank for Development KIHBS Kenya Integrated Household Budget Survey KPA Kenya Ports Authority KRA Kenya Revenue Authority KRB Kenya Roads Board KTSSP Kenya Transport Sector Support Project KURA Kenya Urban Roads Authority LPI Logistic Performance Index M&E Monitoring and Evaluation MoTI Ministry of Transport and Infrastructure, Kenya MoTPS Ministry of Telecommunication and Postal Services MoU Memorandum of Understanding MTRB Ministry of Transport, Roads and Bridges, South Sudan NCB National Competitive Bidding NCMC National Corridor Management Committee NCTIP Northern Corridor Transport Improvement Project NCTTCA Northern Corridor Transit Transport Coordination Authority NEPAD New Partnership for Africa’s Development NGO Non-Governmental Organization NOFBI National Fiber Optical Backbone Infrastructure NPV Net Present Value NTSA National Transport and Safety Authority OD Origin Destination OPBM Output and Performance Based Maintenance OSBP One Stop Border Post PAP Project Affected People PAH Project Affected Households PBMC Performance Based Maintenance Contract PCU Passenger Car Unit PDO Project Development Objective PFM Public Financial Management PIM Project Implementation Manual PIU Project Implementation Unit PMT Project Management Team POC Program Oversight Committee POP Point of presence PPA Project Preparation Advance PPDA Public Procurement and Disposal Act PPP Public and Private Partnership RAP Resettlement Action Plan RCIP Regional Communications Infrastructure Program RDM Road Design Manual RPF Resettlement Policy Framework SA Social Assessment SADC Southern Africa Development Community SOE Statement of Expenditure SOP Series of Projects SSCS South Sudan Customs Services SSNBS South Sudan National Bureau of Standards STDs Sexually Transmitted Diseases TA Technical Assistance TCIP Transparency and Communications Infrastructure Program ToR Terms of Reference USAID United States Agency for International Development VMG Vulnerable and Marginalized Group VOC Vehicle Operating Costs WB World Bank Regional Vice President: Makhtar Diop Regional Director: Colin Bruce Senior Global Practice Director: Pierre Guislain Practice Manager: Supee Teravaninthorn Task Team Leader: Tesfamichael Nahusenay Mitiku Co-Team leader: Josphat Sasia AFRICA: Eastern Africa Regional Transport, Trade and Development Facilitation Project (Second Phase of Program) TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Regional and National Context ..................................................................................... 1 B. Sectoral and Institutional Context ................................................................................. 3 C. Higher Level Objectives to which the Project Contributes .......................................... 5 II. PROJECT DEVELOPMENT OBJECTIVES ................................................................6 A. Project Development Objective (PDO) ........................................................................ 6 Project Beneficiaries ........................................................................................................... 7 PDO Level Results Indicators ............................................................................................. 8 III. PROJECT DESCRIPTION ..............................................................................................8 A. Project Components ...................................................................................................... 8 B. Project Financing ........................................................................................................ 11 Lending Instrument ........................................................................................................... 11 C. Series of Project Objective and Phases ....................................................................... 14 D. Lessons Learned and Reflected in the Project Design ................................................ 17 Alternatives Considered and Reasons for Rejection ......................................................... 18 IV. IMPLEMENTATION .....................................................................................................18 A. Institutional and Implementation Arrangements ........................................................ 18 B. Results Monitoring and Evaluation ............................................................................ 19 C. Sustainability............................................................................................................... 20 V. KEY RISKS ......................................................................................................................20 A. Overall Risk Rating and Explanation of Key Risks.................................................... 20 VI. APPRAISAL SUMMARY ..............................................................................................22 A. Economic Analysis ..................................................................................................... 22 B. Technical ..................................................................................................................... 25 C. Financial Management ................................................................................................ 26 D. Procurement ................................................................................................................ 26 E. Environment (including Safeguards) .......................................................................... 27 F. Social (including Safeguards) ..................................................................................... 29 G. World Bank Grievance Redress .................................................................................. 31 H. Other Safeguards Policies Triggered .......................................................................... 31 Annex 1: Results Framework and Monitoring .........................................................................32 Annex 2: Detailed Project Description .......................................................................................36 Project Beneficiaries ......................................................................................................... 40 Annex 3: Implementation Arrangements ..................................................................................60 World Bank Grievance Redress ........................................................................................ 96 Annex 4: Implementation Support Plan ....................................................................................99 Annex 5: Economic and Financial Analysis ............................................................................102 Annex 6: Background on ICT Projects ....................................................................................122 Annex 7: Background
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