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The World Bank Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No: 46737-ET PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 166 MILLION Public Disclosure Authorized (US$245.00 MILLION EQUIVALENT) TO THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA FOR THE ROAD SECTOR DEVELOPMENT STAGE IV PROJECT (APL4) Public Disclosure Authorized April 30,2009 Transport Sector Country Department AFCE3 Africa Region This document has restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Public Disclosure Authorized authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective February 28,2009) Currency Unit = Ethiopian Birr (ETB) ETB11.02 = US$l.OO US$l.O = SDR 0.677 FISCAL YEAR July 8 - July7 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank APL Adaptable Program LendingLoan including Stages I-IV (APL1, APL2, APL3, APIA) ARCCH Authority on Research, Conservation and Cultural Heritage BADEA Arab Bank for Economic Development in Africa BPR Business Process Reengineering CAS Country Assistance Strategy CBF Community Based Facilitator CBO Community Based Organizations COST Construction Transparency Initiative CPPR Country Portfolio Performance Review cso Civil Society Organization DA Designated Account DAG Development Assistance Group DBST Double Bituminous Surface Treatment DCI Domestic Construction Industry DCOI Development Cooperation of Ireland - Former Ireland Aid DRMC District Road Maintenance Contractor DFID Department for International Development, UK DMO(s) District Maintenance Organization(s) EC Delegation of the European Commission in Ethiopia EA Environmental Assessment EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EITI Extractive Industries Transparency Initiative EMP(s) Environmental Management Plan(s) EMSB Environmental Monitoring and Safety Branch EPA Federal Environmental Protection Authority ERA Ethiopian Roads Authority ERTTP Ethiopia Rural Travel and Transport Program EU European Union EWCA Ethiopian Wildlife Conservation Authority EWNHS Ethiopian Wildlife and Natural History Society FMS Financial Management System FTA Federal Transport Authority GOE Government of Federal Democratic Republic of Ethiopia FOR OFFICIAL USE ONLY GRSF Global Road Safety Facility GTZ Deutsche Gesellschaft fur Technische Zusarnmenarbeit HDM Highway Design Model HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome IBCR Institute of Biodiversity Conservation and Research IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IDA International Development Association or Association IMF International Monetary Fund JBAR Joint Budget and Aid Review JICA Japan International Cooperation Agency Kfw Kreditunstalt fir Wiederaujbau (German Bilateral Aid) LB Labor-Based LIG Local Infrastructure Grant MCB Ministry of Capacity Building MDG(s) Millennium Development Goal(s) M&E Monitoring and Evaluation MOARD Ministry of Agriculture and Rural Development MOH Ministry of Health MOTAC Ministry of Transport and Communications MOWA Ministry of Women’s Affairs MOWUD Ministry of Works and Urban Development NCB National Competitive Bidding NDF Nordic Development Fund NPV Net Present Value OFAG Office of the Federal Auditor General OFID Organization of Petroleum Exporting Countries Fund for International Development ORF Office of the Road Fund PAP(s) Project Affected Person(s) PASDEP Plan for Accelerated and Sustained Development to End Poverty PB S Protection of Basic Services PEFA Public Expenditure and Financial Accountability PFM Public Financial Management PHRD Policy and Human Resources Development Fund (Japan) PIP Project Implementation Plan PMS Pavement Management System PPA Public Procurement Agency PRSP Poverty Reduction Strategy Paper PSCAP Public Sector Capacity Building Program PSNP Productive Safety Net Project QCBS Quality and Cost Based Selection RAMSAR Convention on Wetlands, signed in Ramsar, Iran, in 1971 RAP(s) Resettlement Action Plan( s) RED Roads Economic Decision Model RF Road Fund RMI Road Management Initiative This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. ROW Right-of-way RPF Resettlement Policy Framework RRA(s) Regional Roads Authority(ies) RSDP Road Sector Development Program (1997-2007 covering Phases Iand 11) RSDP I Road Sector Development Program Phase I(1997-2002) RSDP I1 Road Sector Development Program Phase I1(2002-2007) RSDP 111 Road Sector Development Program Phase I11 (2007-2010) RSDPSP Road Sector Development Program Support Project (Cr. 3032-ET) (IDA-financed) SBD Standard Bidding Document SDPRP Sustainable Development and Poverty Reduction Program SIA Social Impact Assessment SNNPR Southern Nations Nationalities and People’s Region SOE Statement of Expenditure STD Sexually Transmitted Disease TA Technical Advisory Services TOR Terms of Reference TPO(s) Transport Poverty Observatory(ies) URAP Universal Rural Access Roads Program WDC(s) Woreda Development Committees Vice President: Obiageli K. Ezekwesili Country Director: Kenichi Ohashi Sector Manager: C. Sanjivi Rajasingham - Task Team Leader: Yoshimichi Kawasumi ETHIOPIA Road Sector Development Stage IV Project (APL4) CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE................................................................... 1 1. Country and sector issues ................................................................................................ 1 2 . Rationale for Bank involvement...................................................................................... 4 3. Higher-level objectives to which the project contributes ................................................ 5 B. PROJECT DESCRIPTION................................................................................................... 5 1. Lending instrument ......................................................................................................... 5 2 . Program objective and stages .......................................................................................... 6 3 . Project development objective and key indicators .......................................................... 6 4 . Project components (APL Stage IV) ............................................................................... 6 5 . Lessons learned and reflected in the project design ........................................................ 8 6 . Alternatives considered and reasons for rejection for APU, within the overall APL objectives .............................................................................................................................. 10 C. IMPLEMENTATION.......................................................................................................... 10 1. Partnership arrangements .............................................................................................. 10 2 . Institutional and implementation arrangements ............................................................ 11 3 . Monitoring and evaluation (M&E) of outcomes/results................................................ 13 4 . Sustainability ................................................................................................................. 13 5. Critical risks and possible controversial aspects ........................................................... 13 .. 6 . Credit conditions and covenants .................................................................................... 17 D. APPRAISAL SUMMARY ................................... ................................................................ 17 1. Economic and financial analyses .................................................................................. 17 2 . Technical ....................................................................................................................... 19 3 . Fiduciary ....................................................................................................................... 19 4 . Social ............................................................................................................................. 20 5 . Environmental ............................................................................................................... 21 6 . Safeguard Policies ......................................................................................................... 23 7 . Policy Exceptions and Readiness .................................................................................. 25 Annex 1: Country and Sector or Program Background......................................................... 26 Annex 2: Major Related Projects Financed by the Association and/or other Agencies....... 51 Annex 3: Results Framework and Monitoring ........................................................................ 54 Annex 4: Detailed Project Description ..................................................................................... 59 Annex 5: Project Costs ............................................................................................................... 68 Annex 6: Implementation Arrangements................................................................................. 70 Annex 7: Financial Management and Disbursement Arrangements..................................... 74
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