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African Development Bank Group Madagascar Indian AFRICAN DEVELOPMENT BANK GROUP MADAGASCAR Public Disclosure Authorized Disclosure Public INDIAN OCEAN - PROJECT TO DEVELOP CORRIDORS AND FACILITATE TRADE PICU/RDGW DEPARTMENTS November 2018 Public Disclosure Authorized Authorized Disclosure Public Translated Document TABLE OF CONTENTS 1.1 STRATEGIC THRUST AND RATIONALE: ................................................................................... 1 1.2 PROJECT LINKAGES WITH COUNTRY STRATEGY AND OBJECTIVES ...................................................... 1 1.3 RATIONALE FOR BANK INVOLVEMENT .............................................................................................. 2 1.4 AID COORDINATION ......................................................................................................................... 2 2. PROJECT DESCRIPTION .................................................................................................................. 3 2.1 PROJECT OBJECTIVES AND COMPONENTS .......................................................................................... 3 2.2. TECHNICAL SOLUTIONS RETAINED AND ALTERNATIVES EXPLORED ......................................................... 5 2.2 PROJECT TYPE .................................................................................................................................. 6 2.4. PROJECT COST AND FINANCING ARRANGEMENTS.................................................................................... 6 2.5. PROJECT AREA AND BENEFICIARIES ....................................................................................................... 9 2.8. KEY PERFORMANCE INDICATORS ......................................................................................................... 11 3. PROJECT FEASIBILITY ................................................................................................................. 11 3.1 ECONOMIC PERFORMANCE ............................................................................................................. 11 3.2 ENVIRONMENTAL AND SOCIAL IMPACT ........................................................................................... 12 ENVIRONMENT ........................................................................................................................................... 12 CLIMATE CHANGE ...................................................................................................................................... 13 GENDER ..................................................................................................................................................... 13 SOCIAL AND YOUTH EMPLOYMENT SOCIAL................................................................................................. 14 ROAD SAFETY ............................................................................................................................................ 14 INVOLUNTARY RESETTLEMENT................................................................................................................... 15 4. IMPLEMENTATION ....................................................................................................................... 15 4.1 IMPLEMENTATION ARRANGEMENTS ................................................................................................ 15 4.2 PROCUREMENT ............................................................................................................................... 16 4.3 DISBURSEMENT ARRANGEMENTS .................................................................................................... 16 4.4 FINANCIAL MANAGEMENT.............................................................................................................. 16 4.5 AUDIT ............................................................................................................................................ 17 4.6 GOVERNANCE ................................................................................................................................ 17 4.7 SUSTAINABILITY ............................................................................................................................ 17 4.8 RISK MANAGEMENT ....................................................................................................................... 18 4.9 KNOWLEDGE BUILDING .................................................................................................................. 19 5. LEGAL FRAMEWORK AND AUTHORITY ................................................................................... 19 5.1 LEGAL INSTRUMENT ....................................................................................................................... 19 5.2 CONDITIONS FOR BANK INVOLVEMENT ........................................................................................... 19 5.3 UNDERTAKINGS ............................................................................................................................. 21 6. CONCLUSION AND RECOMMENDATION .................................................................................. 21 6.1 CONCLUSION .................................................................................................................................. 21 6.2 RECOMMENDATION ........................................................................................................................ 22 7. APPENDICES ..................................................................................................................................... I APPENDIX I : COMPARATIVE SOCIO-ECONOMIC INDICATORS ........................................................................... I APPENDIX II : TABLE ON PROCUREMENT OF GOODS AND SERVICES ................................................................ II APPENDIX III : AFDB PORTFOLIO AS AT 28/09/2018 AMOUNT IN UA (CPO) ................................................ III APPENDIX IV:).PROCUREMENT SYSTEM .............................................................................................. IV APPENDICE V. PROJECT FRAGILITY ASSESSMENT REPORT (PFAR ................................................................. V APPENDIX VI: MAP OF PROJECT AREA ........................................................................................................ IX Appendix VII: Information Note - Eligibility Criteria for Accessing the ADF RO Envelop X Currency Equivalents May 2018 UA 1 = USD 1.44 UA 1 = EUR 1.19 UA 1 = MGA 4 557.57 USD 1 = MGA 3 169.25 EUR 1 = MGA 3 828.12 Fiscal Year From 1 January to 31 December Weights and Measures 1 metric tonne = 2204.62 pounds (lbs) 1 kilogramme (kg) = 2.20 lbs 1 metre (m) = 3.28 feet (ft.) 1 millimetre (mm) = 0.04 inches (“) 1 kilometre (km) = 0.62 mile 1 hectare (ha) = 2.47 acres i Acronyms and Abbreviations AADT Average Annual Daily Traffic IOC Indian Ocean Commission ADF African Development Fund MTPI Ministry of Public Works and Infrastructure ADG “As dug” Gravel AFD French Development Agency NH National Highway AIDS Acquired Immunodeficiency Syndrome OFID OPEC Fund for International Development AIIB Asian Infrastructure Investment Bank PACN National Committee Action Plan AIP Africa Investment Platform (EU) ARM Madagascar Road Authority PACPT Toliara Fishermen's Community Support Project BADEA Arab Bank for Economic Development in PAPs Project-affected persons Africa BN Standards Bureau CEG Comprehensive Secondary School PIA Project Impact Area COMESA Common Market for Eastern and Southern PIU Project Implementation Unit Africa CSP Country Strategy Paper PK Kilometre Point DDP Public Debt Department PRPIM Manombo Irrigation Scheme Rehabilitation Project ERR Economic Rate of Return PRPT Toliara Province Road Project ESIA Environmental and Social Impact RECs Regional Economic Communities Assessment ESMP Environmental and Social Management RER Road Maintenance Charges Plan EU European Union RMF Road Maintenance Fund GCS Graded Crushed Stone SDF Saudi Development Fund HIMO High Labour Intensity STI Sexually Transmitted Infection HIV Human Immunodeficiency Virus TSF Transition Support Facility INSTAT National Institute of Statistics UA Unit of Account WB World Bank i Project Information Client Information Sheet BORROWER : REPUBLIC OF MADAGASCAR EXECUTING AGENCY : MADAGASCAR ROAD AUTHORITY Financing Plan Amounts in million UA SOURCE Local Devises Total % total INSTRUMENTS currency ADF loan 3.2 0.8 4.00 3.6% Loan ADF grant 10 2.5 12.50 11.45% Grant TSF Loan 6.76 1.69 8.45 7.74% Loan ADF regional resources, loan 14.944 3.736 18.68 17.13% Loan ADF regional resources, grant 15 3.75 18.75 17.19% Grant EU (AfIF) 25.736 6.434 32.17 29.49% Grant OFID 7.224 1.806 9.03 8.28% Loan GdM 0 5,45 5.45 5.00% Counterpart funds ADB PROJECT : TOTAL 82.904 26.176 109.08 100% BADEA and Arab Funds 33.36 8.34 41.7 27.74% Loan GRAND TOTAL 116.264 34.516 150.78 Key ADF Financing Information Loan Currency Unit of Account (UA) Interest Type Not Applicable Interest Rate Margin Not Applicable ADF Loan Service Fee 0.75% per year on the disbursed but unreimbursed loan amount ADF Loan Commitment Charge 0.5% on the undisbursed loan amount 120 days following signature of the Loan Agreement Other Charges Not Applicable ADF Loan Maturity 40 years Grace Period 10 years FRR Not Applicable ERR, NPV (baseline scenario) 18% and MGA 4609 million ii Timeframe – Main Milestones (expected) Concept Note Approval : May 2018 Project Approval : November 2018 Effectiveness : March 2019 Last Disbursement : December 2023 Completion : December 2024 Last Reimbursement
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