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Document of The Worid Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized ReportNo. 4873 PROJECT CO-MPLETION REPORT Public Disclosure Authorized FEDERAL ISLAMIC REPUBLIC OF THE COMOROS FIRST 141GHWAY PROJECT - (CREDIT 852-COM) Public Disclosure Authorized December 30, 1983 Transportation Division 1 Eastern Africa Projects Public Disclosure Authorized I This document bos a restricted distribution and may be used by recipients only in the perfomance of their offielal duties. Ib contents may not otherwise be disclosed without World Bank authorizntion. FOR OFFICIAL USE ONLY PROJECT COMPLETIONREPORT FEDERAL ISLAMIC REPUBLIC OF THE COMOROS First Highway Project - (Credit 852-CON) Table of Contents Page No. Preface ....... ...........* ... ...... i Basic Data Sheet......... .. ... ........ 0.1a@z*.v0-...*v*0* ii Highlights .................... ... .. iv I. Introduction ....................... II. Project Preparation,Appraisal and Negotiations...... 2 - Identification and Preparation ...... 2 - Negotiations3.... .. *. *.. .O ... *.. *.......*. 3 III. Project Implemutation and Cost ........................... 4 - General 4 - Changesin the Project ................................ 4 - Road Construction ...... O 5 - Three-YearRoad Improvement and Maintenance Program 5 - Wquipment *.... .. ..... 76.................... - Workshops ....................... 7 - Soils Laboratory 7 - Technical Assistance and Training , 7 -Fellowships 8 SFtudie s ............................................. 8 ost of the Project .................. ........... - Disbursements ............. .. .O.. .............. 9 - Performance of Consultants and Contractors *.............. 10 IV. Performance of the Government ......9 *9..* ................ 11 V. Institution Building ......... *...*.....*..........*....**.... 11 VI. Economic Re-evaluation*..* * * *** ** * * * 9999***9*99 ......... 12 - Construction of Nioumakele Road ......................... 12 - Road Improvement Program . * * * * * ..................... * . 12 - Maintenance Prograu of Paved Road ....................... 13 VII. Role. of IDA ..... ......... 13 VIII. Conclusions and Lessons Learned ................ O-......... 14 BESTCOPY AVAILABLE 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. Table of Contents (cont'd) Tables Table 1 - Cost Estimates at Appraisal Table 2 - Financial Plan for the Project Table 3 - Estimated Project Costs Table 4 - Quantities and Costs per Type of Operation Table 5 - Disbursements by Category Table 6 - Schedule of Disbursements oayB. i Comoroe - First Highway Project (IBRD 13414) Comoros - First Highway Project (IBRD 13415) PROJECTCOMPLETION REPORT FEDERAL ISLAMIC REPUBLIC OF THE COMOROS First Highway Project - (Credit 852-COM) PREFACE The First Highway Project was also the first Bank Group operation in the Comoros, a country which became independentin 1975, a member of ttie Bank in December 1976 and of 'DA a year later. The project was identified in March 1977 and appraised in October of that year after it was prepared under a PPF of US$80,000 which was made available to the Government. The US$5.0 million credit was approved by the Board on October 5, 1978 and became effective in January 1979. There was also a US$4.5 million parallel financing by the African DevelopmentFund (AfDF) for the construction component of the project and a US$1.0 million cofinancing from the OPEC Fund for procurement of equipment. Other sources, not part of the project cofinancing scheme, but with contributionsrelevant to the implementation of the three-year road improvement and maintenance program were the Kuwait Fund with US$2.0 million and European Development Fund with US$1.0 million, both for equipment procurement. This financing arrangement proved, however, less satisfactorythan expected and caused delay in starting project implementation(para. 3.06). In the course of project implementationthe European Economic Community approved US$0.7 million equivalent under Special Action Credit when the Kuwait Fund declined to finance management for the workshops and shop equipment (para. 2.08). A US$6.3 million IDA Credit for a Second Highway Project was approved in October 1981; the Credit became effective in August 1982. The Project basically continues efforts started under the first one in improving road maintenanceoperations and in strengtheningthe country's roads organization. The Project CompletionReport (PCR) was prepared by the Eastern Africa Regional Office. In accordancewith the revised procedures for project performance audit reporting, the PCR was read by the Operations Evaluation Department (OED) although it is not proposed to undertake an audit of the project by OED staff. The PCR was sent to the Borrower for comments;however, none were received. - ii - CONOROS FIRST HIGHWAYPROJECT (Credit 852-COM) PROJECT COV2LETION REPORT Basic Data Sheet Appraisal Actual as % estimate Actual of Appraisal Item Project Cost (US$ million) 11.061/ 11.801/ 106.7 Credit Amount 5.0 5.0 - Date Board Approval 10/5/78 10/5/78 Date of Effectiveness 1/15/79 1/29/79 Date Physical Completion 7/31/82 12/31/82 Closing Date 12/31/82 12/31/82 Economic Rate of Return (%) Construction Component 8-12 about same 100 Road Improvement/ Maintenance 12-34 n.a. rn.a. Institutional Performance mediocre CUMULATIVEDISBURSEMENTS FY78 FY79 FY80 FY81 FY82 Appraisal Estimate (US$ million) 1.55. 3.1 4.2 5.0 - Actual (US$ million) 1.18 3.5 4.6 4.9 5.0 Actual as % of Estimate 76 113 109 98 100 Date of Final Disbursement: February 1983 1/ Excluding Kuwait Fund and EDF contributions but including EEC Special Action Fund contributions. MISSION DATA. Speciali- Perfor- No. of Man-days zations mance Types of Mission Date2 /Persons in Field Represented Rating Trend Problems Preparation 3/77 Appraisal 10/77 Supervision 1 3/28/79 1 5 EC 1 2 Supervision 2 7/20/79 1 4 E 3 2 F Supervision 3 3/21/80 2 4 B 1 1 F Supervision 4 7/18/80 1 14 E 2 2 F Supervision 5 1/29/81 1 5 E 1 2 F,O Supervision 6 12/16/81 1 7 EC 2 2 F Supervision 7 12/23/82 1 8 E 2 2 F,N 2 Report dates of supervision missions. - iii - Other Project Data: Borrower: Federal Islamic Republic of the Comoros Executing Agency: Directorateof Equipment and Improvement of Territory, (DEIT) Fiscal Year: January 1 - December 31 Name of Currency: Comorian Franc (CF) Currency Exchange Rates: at appraisal: US$1.0 = CF 240 at end 1979: US$1.0 = CF 210 1980: US$1.0 - CF 227 1981: US$1.0 - CF 287 Average used in consultants'Final Report: US$1.0 5 CF235 - iv - PROJECT COMPLETIONREPORT FEDERALISLAMIC REPUBLIC OF THE COMOROS First Highway Project - (Credit 852-COM) HIGHLIGHTS The project consisted of three major components: (a) construction of a 20.4 km road on Anjouan island, financed in parallel by the AfDF; (b) the implementationof a three-year road improvement program; and (c) studies. The constructionpart was satisfactorilycompleted by a French contractor within appraisal cost estimates but with about six months delay due to heavy rains and shortage of imported materials and fuel (para. 3.05). Out of the four studies originally Included in the Project, three were not carried out: the pre-investmentstudy in the Nioumakele area was deleted when it was included in an IDA-financedagricultural project; a detailed engineering study of a road was deleted when the Saudi Fund decided to finance the subject road without waiting for the outcome of the study; and another detailed engineering study was deleted when the feasibility study, the only study carried out of the original four, showed the improvement of the subject road not to be economicallyjustified (para. 3.03). The main objective of the project was the implementationof the three-year road maintenance program; it was expected to improve substantially the condition of the road network and with technical assistaniceand training provided by expatriate consultants,it was expected to create necessary institutionbuilding as well. These goals were only partly achieved due to the following reasons: (a) a delay of 18 months before the brigades which were to carry out the three-year program became fully operational,mainly due to setting up an adequate Government organization for roads (para. 3.07); (b) Government's inability to collect taxes and duties which were supposed to feed a re-establishedRoad Fund; this in turn led to a continuous shortage of loc:alfunds for payments of the brigade crews (para. 3.09); (c) even thioughIDA subsequentlyagreed to finance part of the local wages, the brigade operations came to a virtual standstill when the IDA Credit was committed about a year before the Closing Date, and when only 40% of equipment was operative; (paras. 3.09, 3.10); and -v- (d) shortage of qualified local counterpartswith adequate education to be trained by the consultants (para. 3.16). The above developments resulted in the three-year program being greatly reduced and the momentum gained during its implementationbeing partly lost before the brigades became operational again in January 1983 under the Second Highway Project. Consequently,it could be concluded that except for the construction part, the project was only partially successful. As to the economic re-evaluationof the project components, sufficient data were not available to present a meaningful comparison between estimated and actual economic benefits for the road improvement and maintenance program (paras. 6.04 and 6.07). A lesson to be learned
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