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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY FlE CO?P Public Disclosure Authorized Report No. 4717-GUB GUINEA-BISSAU Public Disclosure Authorized SECOND ROADS PROJECT STAFF APPRAISAL REPORT Public Disclosure Authorized APRIL 10, 1984 Public Disclosure Authorized West Africa Projects Department Transportation Division II 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 Currency Unit = Guinea-Bissau Peso (GP) Until Dec. 23, 1983 US$1.0 = GP 41 GP 1 million = US$24,400 After Dec. 23, 1983 US$1.0 = GP 82 GP 1 million = US$12,200 FISCAL YEAR January 1st - December 31st ABBREVIATIONS AND ACRONYMS BNG - Banco Nacional da Guine Bissau DGAT - Direca9o Geral de Assuntos T6cnicos (Directorate General of Technical Affairs, MOPCU) DGC - DirecgEo Geral da Construcao (Directorate General of Construction, MOPCU) DEP - Direcgo das Estradas e Pontes (Roads and Bridges Directorate) DTT - Direcgao de Transportes Terrestres (Land Transport Directorate) ENG - Estaleiro Naval da Guine (National Shipyard) FED - Fonds Europ6en de Developpement (European Development Fund of the Common Market) FNI - Fondo Nacional de Investimiento (National Investment Fund) GUINEMAR - National river passenger transport company LIA - Linheas A6reas da Guine-Bissau MEF - Ministerio da Economia e Finangas (Ministry of Economics and Finance) MOPCU - Ministerio de Obras Publicas, Construcao e Urbanismo (Ministry of Public Works, Construction and Urban Development) MTT - Ministerio de Transportes e Turismo (Ministry of Transport and Tourism) SOCOMIN - Sociedade Comercial e Industrial SR - Servico Regiao (Regional depots of MOPCU) v.p.d. - Vehicles per day p.c.u - Passenger car unit (iii) FOR OFmFCIALUSE ONLY GUINEA-BISSAU SECOND ROADS PROJECT STAFF APPRAISAL REPORT TABLE OF CONTENTS DOCUMENTS AVAILABLE IN THE PROJECT FILE.............*...............(v) CREDIT AND PROJECT SUMMARY ..... .... ........ ............... (vii) I. THE TRANSPORT SECTOR ........... ...... ... ** ... ** ....... 1 A. Economic Setting ande........td........ Background......... 1 B. The Transport System ......... .......................................... 2 C. Administrationand Planning............................ 3 D. Public Investments. ...... ........... .... 3 E. Oil Products Pricing .......... *. ....... 4 F. ID InvolvementA in the Sector................ 5 II. HIGHWAY SUBSECTOR ...... ... .... .. ............ 6 A. General ...........................O................................... 6 B. Traffic.......... ..... ........ 7 C. Public Management,Road Maintenance and Finances.......... 9 D. The Action Plan ..... .. 0.0...06 ........................................... 14 III. THE PROJECT.............................................................. 14 A. Objectives ...... ..... * ........................0. 14 B. Project Description. ....... *. ......... .. .............. 16 C. Project Implementation .......... ........ ............ 22 D. Cost Estimates .. ....... ......... .......... .. *..... 22 E. Financing Plan.... .... ......... ... 23 F* Procurement ................... ..... ..... 23 G. Disbursement....... .......... ................ 25 H. Reporting and Auditing...****........................ 27 This report has been prepared by C.J.D. Lane, Senior Highway Engineer, J. Pelletey, Economist,and A. Covindassamy,Economist/Financial Analyst, WAPT2, on the basis of an appraisal mission in March 1983. Most secretarial work was done by Ms. Griest and M. Kashyap. This document has a restricted distributionand may be used by recipientsonly in the performance of their officialduties. Its contents maynot otherwise be disclosedwithout World Bankauthorization. (iv) Table of Contents (continued) IV. ECONOMIC EVALUATION ........... ............... ........ 28 A. General ........... 0....................................... 28 B. Road Rehabilition and Maintenance Program ..... ......... 29 C. Routine Maintenance ........................... O-#....... 30 D. Ferries Component .............................. ....... 31 E. Maintenance Expenditures Recovery ...............o ......... 31 F. Distribution of Project Benefits ...................... 32 V. AGREEMENTS REACHED AND RECOMMENDATIONS........................ 33 ANNEXES 2-1 Ministry of Public Works, Construction and Urban Development (MOPCU) - Future Organization Chart 2-2 An Action Plan 2-3 Training Program 3-1 Road Rehabilitation Program 3-2 Design Standards 3-3 List of Equipment 3-4 Equipment to be Purchased 3-5 Draft Terms of Reference for Technical Assistance Team 3-6 Project Costs 3-7 Estimated Schedule of Disbursements 4-1 Average Vehicle Operating Costs by Road Category and Conditions 4-2 Annual Comparison of Condition of the Roads with and without the Proposed Project 4-3 Paved Roads Rehabilitation Program - Basic Assumptions 4-4 Gravel Roads Rehabilitation Program - Basic Assumptions 4-5 Earth Roads Rehabilitation Program - Basic Assumptions 4-6 Cost Benefit Analysis - Rehabilitation Program 4-7 Cost Benefit Analysis - Routine Maintenance Program 4-8 Cost Benefit Analysis - Ferry Rehabilitation Component 4-9 Recurrent Expenditures Recovery 4-10 Distribution of Benefit Flows Map IBRD 17300R (v) GUINEA-BISSAU SECOND ROADS PROJECT STAFF APPRAISAL REPORT Project File Code/ Ref. No. DOCUMENTS AVAILABLE IN THE PROJECT FILE Bank Document No. 1 Transpo-t6nctor Memorandum WAPT2, Report 3942-GUB June 1982 (TransportSector Bank Reports) 2 Road Rehabilitationand Maintenance Doc # 128.444(B) Program, Techno-EconomicStudy, Louis Berger International, December 1982 3 Second Roads Project, Planning Doc # 128.444(C) Budgeting and Organisationof Works, Louis Berger International,April 1983 4 General Transport Study, Lavalin Doc # GUB 800 International/Delcanda,August 1980 5 Equipment Needs Evaluation, Louis Doc # 128.444(D2) Berger International,June 1983 6 Bissau Port Project, Staff Appraisal GUB-CR 1392, Bank Rpts. Report (No 4311 GUB, May 1983) 7 Guinea Bissau: An Introductory GUB-LEAP Bank Rpts. Economic Report, IDA, June 1981 (Report No. 3529 GUB) 8 Notes on Road and Ferry Traffic Docs # 128.444 (E & F) (AppraisalMission, 1983) 9 Notes on Economic Evaluation Docs # 220.034 (Q, to Q5) (AppraisalMission, 1983) WAPT2 Mar. 84 (vii) REPUBLIC OF GUINEA-BISSAU SECONDROADS PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Guinea-Bissau Beneficiary: Ministry of Public Works, Construction and Urban Develop- ment (MOPCU) and Ministry of Transport and Tourism (MTT) Amount: SDR 3.9 million (US$4.00 million equivalent) from IDA. SDR 3.9 million (US$4.00 million equivalent) from the Special Fund administered by IDA Terms: Standard On-lending Terms: None Project Description: The project would assist MOPCU to build up its new organi- zation and continue the rehabilitation of its road network begun under the ongoing First Roads Project (Cr. 878-GUB, approved in January 1979) and address important institution building objectives in the transport sector. The principal components of the project are: (a) rehabilitation of about 500 km of roads; (b) establishment of a routine maintenance service; (c) training; (d) improvement of the ferry service at key crossings; and (e) assistance with management of the sector to MTT and MOPCU. Project Benefits and Risks: The project would benefit the country by reopening roads neglected since independence, and by reducing transport costs on 500 km of roads. The project would also postpone future rises in vehicle operating costs and future costs for expensive reconstruction by assuring effective routine maintenance. Improvements to the ferry service would reduce the severe disruption to internal and external communications caused by frequent breakdowns. The project is a direct follow up to IDA's First Roads Project (Cr. 878-GUB) during which three rehabilitation brigades were equipped and trained, and the supporting administrative and workshop facilities built up, so the physical components present few risks. The fiscal and administrative reforms to be set up to improve management of the sector may be hampered by a general lack of adminis- trative experience in this country. Even with 95% donor financing there is a risk that Government will have diffi- culty with counterpart financing. This risk would be (viii) addressed by requiring, as a condition of effectiveness, that the government deposit its first year's contribution into a special account. Estimated Project Costs (US$'000): Local Foreign Total Road Rehabilitation 1,310 5,240 6,550 Routine Maintenance 198 2,190 2,388 Training 9 200 209 Ferries 12 364 376 Assistance to DTT 3 61 64 Assistance to MOPCU 59 1,395 1,454 Total Base Cost 1,591 9,450 11,041 Physical Contingencies 147 956 1,103 Price Contingencies 228 1,463 1,691 Total Project Cost 1,966 11,869 13,835 Rounded 2,000 11,800 13,800 Financing Plan (US$'000) Local Foreign Total L Special Fund Administered by IDA 1,222 2,778 4,000 (29) IDA 28 3,972 4,000 (29) Kuwait Fund 50 5,050 5,100 (37) Government 700 -- 700 (5) 2,000 (15%) 11,800 (85%) 13,800 (100) Estimated Disbursements from the IDA Credit (US$ million) FY85 FY86 FY87 FY88 FY89 FY90 FY91 Annual 0.42 .88 1.01 0.82 0.53 0.29 0.05 Cumulative 0.42 1.30 2.31 3.13 3.66 3.95 4.00 Estimated Disbursements from the Special Fund administered by IDA (US$ million) FY85 FY86 FY87 FY88 FY89 FY90 FY91 Annual 0.42 0.88 1.01 0.82 0.53 0.29 0.05 Cummulative 0.42 1.30 2.31 3.13 3.66 3.95 4.00 Economic Rate of Return: 37% Staff
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