FOR OFFICIAL USE ONLY Report No: PAD2937 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 102.7 MILLION (US$140.0 MILLION EQUIVALENT) TO THE Public Disclosure Authorized REPUBLIC OF MADAGASCAR FOR THE CONNECTIVITY FOR RURAL LIVELIHOOD IMPROVEMENT PROJECT October 25, 2019 Public Disclosure Authorized Transport Global Practice Africa Region Public Disclosure Authorized 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 (Exchange Rate Effective September 30, 2019) Currency Unit = M alagasy Ariary SDR 0.7335 = US$1 US$1.363 = SDR 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Hafez M. H. Ghanem Country Director: Mark R. Lundell Global and Regional Director: Riccarod Puliti Practice Manager: Maria Marcela Silva Task Team Leaders: Papa Mamadou Fall, Raman Krishnan ABBREVIATIONS AND ACRONYMS AC Asphalt Concrete AfDB African Development Bank ARM Road Authority of Madagascar (Autorité Routière de Madagascar) ARTEC Regulation Authority of Communication Technology (Autorité de Régulation des Technologies de Communication) AWPs&B Annual Work Plan and Budget BCM Central Bank of Madagascar (Banque Centrale de Madagascar) CIP Communications Infrastructure Project COA Board of Directors and Orientation (Conseil d’Orientation et d’Administration) COER Road Maintenance Orientation Board (Conseil d’Orientation de l’Entretien Routier) CPF Country Partnership Framework DBST Double Bituminous Surface Treatment DE4A Digital Economy Moonshot for Africa DGTP Director General of Public Works (Direction Générale des Travaux Publics) DPO Development Policy Operation EASSy East Africa Submarine Cable System EIB European Investment Bank ESIA Environmental and Social Impact Assessment ESHS Environmental, Social, Health, and Safety ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan EU European Union FER Road Maintenance Fund (Fonds d’Entretien Routier) FM Financial Management GBV Gender-based Violence GHG Greenhouse Gas GoM Government of Madagascar GPN Good Practice Note GRM Grievance Redress Mechanism GRS Grievance Redress Service GRSF Global Road Safety Facility GSMA Global System for Mobile Communications Association HDM Highway Development and Management HIV Human Immunodeficiency Virus IA Implementing Agency IAS International Accounting Standards ICT Information and Communication Technology IDA International Development Association IFR Implementation Financial Report IFRS International Financial Reporting Standards IG General Inspectorate IGPCP Integrated Growth Poles and Corridor Project IPF Investment Project Financing IRR Internal Rate of Return M&E Monitoring and Evaluation MAHTP Ministry of Territorial Planning, Housing, and Public Works (Ministère de l’Aménagement du Territoire, de l’Habitat et des Travaux Publics) MEF Ministry of Economy an Finance (Ministère de l’Économie et des Finances) MTTM Ministry of Transport, Tourism, and Meteorology (Ministère des Transports, du Tourisme, et de la Météorologie) NGO Nongovernmental Organization NPV Net Present Value OP/BP Operational Policy/Bank Procedure PC Project Coordinator PCC Particular Conditions of Contract PCU Project Coordination and Implementation Unit PDO Project Development Objective PFS Project Financial Statements PIM Project Implementation Manual PMC Project Management Consultancy PPA Project Preparation Advance PPSD Project Procurement Strategy for Development RA Road Agency (Agence Routière de Madagascar) RADMS Road Accident Data Management System RAI Rural Access Index RAP Resettlement Action Plan RC Communal Road (Route Communales) RF Road Fund (Fonds Routier) RN National Road (Route Nationale) RP Provincial Road (Route Provinciales) RPF Resettlement Policy Framework SBD Standard Bidding Document SEA Sexual Exploitation and Abuse SC Steering Committee SDR Special Drawing Rights STEP Systematic Tracking of Exchanges in Procurement TC Technical Committee ToR Terms of Reference UNFPA United Nations Population Fund WHO World Health Organization The World Bank Connectivity for Rural Livelihood Improvement Project (P166526) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context................................................................................................................................ 7 B. Sectoral and Institutional Context .................................................................................................... 8 C. Relevance to Higher Level Objectives ............................................................................................. 12 II. PROJECT DESCRIPTION .................................................................................................. 14 A. Project Development Objective ..................................................................................................... 14 B. Project Components ....................................................................................................................... 15 C. Project Beneficiaries ....................................................................................................................... 17 D. Results Chain .................................................................................................................................. 18 E. Rationale for World Bank Involvement and Role of Partners......................................................... 18 F. Lessons Learned and Reflected in the Project Design .................................................................... 19 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 21 A. Institutional and Implementation Arrangements .......................................................................... 21 B. Results Monitoring and Evaluation Arrangements......................................................................... 22 C. Sustainability ................................................................................................................................... 23 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 23 A. Technical, and Economic Analysis .................................................................................................. 23 B. Fiduciary .......................................................................................................................................... 28 C. Safeguards ...................................................................................................................................... 29 V. KEY RISKS ..................................................................................................................... 32 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 35 ANNEX 1: Detailed Project Description .......................................................................... 43 ANNEX 2: Implementation Arrangements and Support Plan .......................................... 49 ANNEX 3: GBV and SEA Prevention and Response Action Plan ....................................... 58 The World Bank Connectivity for Rural Livelihood Improvement Project (P166526) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Madagascar Connectivity for Rural Livelihood Improvement Project Project ID Financing Instrument Environmental Assessment Category Investment Project P166526 A-Full Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 15-Nov-2019 31-Mar-2025 Bank/IFC Collaboration No Proposed Development Objective(s) The Project Development Objective is to enhance transport connectivity in selected rural areas to improve access to social and economic opportunities of communities. Components Component Name Cost (US$, millions) Page 1 of 64 The World Bank Connectivity for Rural Livelihood Improvement Project (P166526) Rehabilitation of Secondary Roads in Priority Regions 108.00 Improvement of Provincial, Communal, and Unclassified Roads in Priority Regions 20.00 Promotion of Digital Solutions in targeted Rural Communities 4.00 Capacity Building and Project Management 8.00 Contingency Emergency Response Component (CERC) 0.00 Organizations Borrower: REPUBLIC OF MADAGASCAR Implementing Agency: Ministère de l'Aménagement du Territoire, de l'Habitat, et des Travaux Publics PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 140.00 Total Financing 140.00 of which IBRD/IDA 140.00 Financing Gap 0.00 DETAILS-NewFinEnh1 World Bank Group Financing International Development Association (IDA) 140.00