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World Bank Document Documentof The WorldBank Public Disclosure Authorized ReportNo: 21735-YEM PROJECT APPRAISAL DOCUMENT ONA PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF US$45 MILLION EQUIVALENT TO THE REPUBLIC OF YEMEN IN SUPPORT OF THE FIRST PHASE OF AN ADAPTABLE PROGRAM CREDIT FOR THE RURAL ACCESS PROGRAM Public Disclosure Authorized May 11, 2001 Public Disclosure Authorized Finance,Private Sector Development and Infrastructure MiddleEast and North AfricaRegion CURRENCY EQUIVALENTS (Exchange Rate Effective December 2000) Currency Unit = YR I YR = US$ 0.00625 US$ I = YR 163 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ADT Average Daily Traffic CAS Country Assistance Strategy CMO Central Management Office for Rural Roads CPAR Country Procurement Assessment Report EIA Environmental Impact Assessment EMP Environmental Management Plan FMS Financial Management System GCRB General Corporation for Roads and Bridges GOY Government of Yemen GOPP Goal Oriented Project Planning GTZ German Agency for Technical Cooperation HDM The Highway Design and Maintenance Standard Model HTB High Tender Board ICR Implementation Completion Report IDA International Development Association IRR Internal Rate of Return M & E Monitoring and Evaluation MPWUD Ministry of Public Works and Urban Development MOF Ministry of Finance MOLA Ministry of Local Administration MOPD Ministry of Planning and Development MOT Ministry of Transport PAD Project Appraisal Document PCD Project Concept Document PIP Project Implementation Plan PIU Project Implementation Unit PMR Project Management Report PMS Pavement Management System PWP Public Works Project RAMP Rural Access Master Plan RAP Rural Access Program RED Roads Economic Decision Model RMF Road Maintenance Fund ROY Republic of Yemen SAR Staff Appraisal Report SDR Standard Drawing Rights SFD Social Fund for Development TA Technical Assistance TOR Terms of Reference TRP Transport Rehabilitation Project UNDP United Nations Development Program VOC Vehicle Operating Cost YAR Yemen Arab Republic YRFB Yemen Road Maintenance Fund, Board of Directors Vice President: Jean-Louis Sarbib Country Director: Mahmood A. Ayub Sector Manager: George Tharakan Team Leader: Terje Wolden Republic of Yemen Rural Access Program Phase I CONTENTS A. Program Purpose and Project Development Objective.......................................... 2 1. Program purpose and program phasing ............................ ,.2 2. Project development objective............................ 4 3. Key performance indicators....................... 4 4. Triggers for subsequent loans ..................... 5 B. Strategic Context....................... 6 1. Sector-related Country Assistance Strategy goal supported by the project .....................................6 2. Main sector issues and Government strategy .......................................................... 6 3. Sector issues to be addressed by the project ......................................................... 10 4. Strategic Choices ......................................................... I I C. Project Description Summary ......................................................... 12 1. Project components......................................................... 12 2. Key policy and institutional reforms supported by the project...................................................... 12 3. Benefits and target population......................................................... 13 4. Institutional and implementation arrangements......................................................... 16 D. Project Rationale ......................................................... 19 1. Project altematives considered and reasons for rejection ......................................................... 19 2. Major related projects financed by the Bank and/or other development agencies ........................ 20 3. Lessons learned and reflected in the project design ......................................................... 20 4. Indications of borrower commitment and ownership......................................................... 21 5. Value added of Bank support in this project ......................................................... 22 E. Summary Project Analysis......................................................... 22 1. Economic.................. 22 2. Financial.................. 25 3. Technical.................. 27 4. Institutional.................. 27 5. Environmental.................. 28 6. Social.................. 32 7. Safeguard Policies .................. 35 F. Sustainability and Risks .................. 36 1. Sustainability......... 36 2. Critical Risks ..................... 37 3. Possible Controversial Aspects ..................... 38 G. Main Loan Conditions ............................................................ 38 1. Effectiveness Conditions............................................................ 38 2. Other............................................................ 38 H. Readiness for Implementation ............................................................ 38 L. Compliance with Bank Policies............................................................ 39 Annexes Annex 1 Project Design Summary ............................................................ 40 Annex 2 Detailed Project Description............................................................ 44 Annex 3 Estimated Project Costs ............................................................ 51 Annex 4 Cost-Benefit Analysis Summary............................................................ 52 Annex 5 Financial Management Summary............................................................ 57 Annex 6 Procurement and Disbursement Arrangements............................................................ 65 Annex 7 Project Processing and Schedule............................................................ 77 Annex 8 Documents in Project File............................................................ 78 Annex 9 Statement of Loans and Credits ............................................................ 79 Annex 10 Country at a Glance ............................................................ 81 Annex 11 Letter of Development Program from the Government of Yemen ............... ....................83 Annex 12 The Road Sector............................................................ 87 Annex 13 Environmental Management Plan Summary ............................................................ 3]02 Annex 14 Village Access and Poverty Surveys. ............................................................ ]24 Annex 15 Rural Accessibility Planning Methodology and Draft Terms of Reference ................... 129 Annex 16 Sectoral Environmental Assessment, Draft Terms of Reference ................ ....................139 Maps IBRD No. 31405 REPUBLIC OF YEMEN RY-RURAL ACCESS PROGRAM Project Appraisal Document Middle East and North Africa Region Finance, Private Sector Development and Infrastructure Date: May 11,2001 Team Leader: Terje Wolden Country Manager/Director: Mahmood A. Ayub Sector Manager: George Tharakan Project ID: 70391 Sector: TR - Rural Roads Lending Instrument: APL Theme(s): Transport/Poverty Poverty Targeted Intervention: I xl Yes [ ] No i~~~~~~~~ , gEEE= IDA Others Total Commitment Closing US$ m % US$m US$rm Date Date APL 1 45.00 85.5 7.61 52.61 07/01/2001 12/31/2004 Governmentof Yemen C redit I_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ APL 2 50.00 50 50.00 100.00 06/15/2003 12/31/2007 Governmentof Yemen Credit APL 3 50.00 50 50.00 100.00 12/15/2006 12/31/2011 Governmentof Yemen Credit Project FinancingData [ ] Loan [ X Credit [] Grant [] Guarantee [] Other [Specify] For Loans/CreditslOthers: Amount (US$ m): 45.00 Proposed terms: [ To be defined [] Multi-currency [] Single currency [X] StandardVariable [] Fixed [] LIBOR-based Grace period (years): 10 Years to maturity: 40 Commitmentfee: 0.50 % Service charge: 0.75% Front-end fee on Bank loan. N/A Government 7.61 0.00 7.61 IBRD IDA 22.55 22.45 45.00 Total: 30.16 22.45 52.61 Borrower:Republic of Yemen Guarantor: N/A Responsibleagency(ies): Ministry of PublicWorks and Urban Development,MPWUD Estimateddisbursements (CYIUS$M): . Annual 2.40 16.30 15.00 11.30 Cumulative 2.40 18.70 33.70 45.00 Project implementationperiod: 2001 - 2004 Expectedeffectiveness date: October 31, 2001 Expectedclosing date: December 31, 2004 Implementingagency: The Central ManagementOffice for Rural Roads Contactperson: H.E. Abdullah H. Al Dafei, Minister,MPWUD, Chairmanof the SteeringCommittee Address: Sana'a,Republic of Yemen Tel: +967-1-264144 Fax: +967-1-264070 E-mail: 2 A: Program Purpose and Project Development Objective 1. Program purpose and program phasing: (see Annex 1) The overall purpose and long-term development objective of the Yemen - Rural Access Program (the Program) is an improved livelihood and reduced isolation for the rural population. To achie' e that objective, year-round access to markets and services (both social and administrative) would have to improve, especially in the rural areas where the large majority of the country's poor live. The Program is designed to support the Government's decentralization process, which has recently been initiated, and it would complement and enhance several community-based programs in Yemen, such as the Socia Fund Project and the Public Works Project. The Program would reduce isolation by ensuring that rural people have reliable access through the local, regional and national road networks. This will be done by financing improvements to a "cluster"
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