AFRICAN DEVELOPMENT BANK GROUP

BENIN

PARAKOU URBAN TRANSPORT PROJECT

OITC DEPARTMENT

September 2014

Translated document

TABLE OF CONTENTS

I – STRATEGIC THRUST AND RATIONALE ...... 1 1.1. Project Background ...... 1 1.2. Project Linkages with Country and Regional Strategies ...... 1 1.3. Aid Coordination ...... 2 II – Project Description ...... 3 2.1 Project Objectives ...... 3 2.2 Project Components ...... 3 2.3. Technical Solutions Adopted and Alternatives Explored ...... 4 2.4. Project Type ...... 5 2.5. Project Cost Estimate and Financing Arrangements ...... 5 2.6. Project Area and Targeted Beneficiaries ...... 6 2.7. Participatory Process for Project Identification, Design and Implementation ...... 7 2.8. Reflecting Bank Group Experience and Lessons in Project Design ...... 7 2.9. Key Performance Indicators ...... 8 III –FEASIBILITY ...... 8 3.1 Economic and Financial Performance ...... 8 3.2. Environmental and Social Impact ...... 9 IV –IMPLEMENTATION ...... 12 4.1. Implementation Arrangements ...... 12 4.2. Monitoring ...... 14 4.3. Governance ...... 14 4.4. Sustainability ...... 15 4.5. Risk Management ...... 16 4.6. Knowledge Building ...... 16 V – LEGAL FRAMEWORK ...... 17 5.1. Legal Instrument ...... 17 5.2. Conditions for Bank Intervention ...... 17 5.3. Compliance with Bank Policies ...... 18 5.4. Constraint Related to Frontloading...... 18 VI – CONCLUSIONS AND RECOMMENDATIONS ...... 18 6.1. Conclusions ...... 18 6.2. Recommendations ...... 18 Appendix i. Comparative socio-economic indicators of . Appendix ii: table of Bank portfolio in benin Apendix iii: Major Related Projects Financed by the Bank and Benin’s other Development Partners Appendix iv.Justification of Frontloading for Benin Appendix v. Map of the project area

Currency Equivalents May 2014

UA 1 = CFAF 733.957 UA 1 = USD 1.54969 UA 1 = EUR 1.11891

Fiscal Year 1 January - 31 December

Weights and Measures 1 metric tonne = 2 204 pounds 1 kilogramme (kg) = 2.200 pounds 1 metre (m) = 3.281 feet 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.621 mile 1 hectare (ha) = 2.471 acres

Acronyms and Abbreviations

AFD French Development Agency! APD Avant-Projet Détaillé (Detailed Design Studies) BAD African Development Bank CNSR National Road Safety Center CPTF Committee of Technical and Financial Partners DGTP Directorate-General of Public Works CSP Country Strategy Paper ADF African Development Fund EDF European Development Fund GEF Global Environment Facility FR Road Fund INSAE National Institute of Statistics and Economic Analysis MDGs Millennium Development Goals PACITR Community Infrastructure and Road Transport Action Programme ESMP Environmental and Social Management Plan PRFTTRIE Regional Programme to Facilitate Inter-State Road Transport and Transit RNIE Inter-State Trunk Roads LTS Long Term Strategy UA Unit of Account EU European Union USD United States Dollar PIA Project Impact Area

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Project Information Sheet Client Information BORROWER: Benin DONEE: Benin PROJECT NAME: Parakou Urban Transport Project. LOCATION: Department of Borgou in Benin. EXECUTING AGENCY: Ministry of Public Works and Transport (MTPT) of Benin,

Financing Plan

Source Amount (UA) Amount (US$) Instrument

ADF 23 800 000 Loan ADF 11 530 415 Loan GEF 1 201 256 1 861 574 Grant BOAD 34 042848 Loan Government of Benin 7 591 256 Counterpart Fund

TOTAL COST 78 165 774

ADB Key Financial Information

Loan Currency Unit of Account (UA) Type of Interest* N/A Commitment Fee on ADF Loan * 0.5% per annum, on the undisbursed portion of the loan 120 days after the signing of the loan agreement Service Fee on ADF Loan 0.75% per annum on the amount disbursed and outstanding Other Charges * N/A Maturity 40 years Grace Period 5 years FRR, NPV (baseline case) CFAF 86.082 Billion ERR (baseline case) 28.42%

Timeframe – Main Milestones (Expected)

Concept Note Approval February 2014 Project Approval September 2014 Effectiveness March 2015 Last Disbursement December 2020 Completion December 2019 Last Repayment 2074

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EXECUTIVE SUMMARY Project Overview 1. The Parakou Urban Transport Project aims to upgrade urban mobility in Parakou and improve living conditions of people in the project area while reducing road accidents. The project will rehabilitate and widen the 17.55 km main roads of the city into 2x2 lanes. The total cost of the project net of taxes and customs duties is estimated at UA 78.17 million (UA 53.24 M in foreign exchange and UA 23.8 M in local currency) and will be financed by the Government (UA 7.59 M), ADF (UA 35.33 M which includes 23,8 MoUA in 2014 and 11,53 MoUA in 2015), GEF (UA 1.20 M) and BOAD (UA 34.04 M). 2. Given the "Frontloading" requirements that a country cannot commit more than 50% of its allocation during the first year of the relevant ADF cycle, it is therefore recommended that the ADF will grant to the Government of Benin a UA 23, 80 million loan under 2014, representing a portion of UA 35.33 million needed to co-finance the project. The balance of UA 11.53 million will be submitted to the Board‘s approval during the year 2015 on Lapse of Time basis. 3. Project activities will be implemented from June 2015 to December 2020. The expected outcomes for the project thereof include improving the average speed of traffic at peak times on the two project roads, reducing road accidents, creating jobs et improving the productivity of urban economic activities in Parakou. The development of the city of Parakou will attract some many people and businesses, resulting in increased agricultural production and improved household incomes in the Department of Borgu while ensuring competitiveness of the whole country. 4. The project will contribute to poverty reduction in the PIA by improving access to basic social services and strengthening the activities of women and other disadvantaged groups through the creation of socio-economic activities in the city of Parakou. Needs Assessment 5. Parakou is the third largest city with over 200,000 inhabitants and is the regional capital of one of the most productive regions of Benin. The city is a Crossroads of major international roads (Benin-Niger, Benin-Burkina Faso, Benin-Togo and Benin-Nigeria), terminus of the -Parakou railway of the Benin-Niger Joint Organisation (OCBN), mandatory crossing point for national, regional and international traffic, as well as the capital of the cotton-producing and agricultural area of the country. Besides, the city of Parakou occupies a strategic position in terms of decentralization policy and regional development of the country. And yet the city, hub for national and regional traffic lacks the adequate road infrastructure to expand its impact area. The poor and narrow conditions of the two main roads crossing the city are a major constraint to the development of urban economic activities and bring about many traffic accidents. In addition, the serious traffic congestion on these roads is detrimental to national and international traffic and undermines the competitiveness of the North-South corridor. The development of these roads is provided by the huge trade potential conferred by their role as transit roads towards Niger, Nigeria, Togo and Burkina Faso. Bank’s Value Addition 6. There are three level of justification why the Bank is involved in this project: (i) the Bank is already engaged in the development of the economic potential of Northern Benin, particularly through the road projects of - N'dali completed in 2009 and N'dali- Nikki-Chicandou- Nigeria Border nearing completion; (ii) the project objective to loosen the constraints of urban and regional development related to the poor state of transport

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infrastructure and low regional connectivity is consistent with the Ten-Year Bank Strategy that promotes infrastructure and regional integration as well as the Urban Development Strategy of the Bank; and (iii) in supporting the urban, regional and international development project, the Bank will continue to play a leadership role for the development of the continent. Knowledge Management 7. The project provides a good opportunity for the Bank to extend the knowledge on the impact of developmental projects on urban development and the impact of attractiveness and urban development on trade and regional integration.

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RESULTS-BASED LOGFRAME Project Country and Name: Parakou Urban Transport Project in Benin Project Goal: Improve Urban Mobility in Parakou and living conditions of people in project area while reducing road accidents. PERFORMANCE INDICATORS MEANS OF RISKS/ RESULTS CHAIN Indicator VERIFICATION MITIGATING MEASURES (Including CSI) Baseline Target Urban economic Incidence of income poverty In 2013 : 31.5% In 2019 : 29.75% Source : Statistics : activities and trade with for the Department of INSAE other regions and Borgou neighboring countries have improved in Parakou.

Outcomes Risks: (i) Lack of resources for infrastructure maintenance by the FER and IMPACT the City of Parakou; (ii) non-compliance with road traffic code and rules for the use of municipal infrastructure Mitigating Measures: (i) Listing of the road projects in FR’s priority programme, support for the establishment of a governance body for market infrastructure (which is expected to Average speed on both In 2013: 15km/h In 2019: 30 km/h collect user charges for maintenance) and Outcome1: Mobility project roads during peak (Or 100% increase) study on mobilizing local financial resources; and safety enhanced on hours and (ii) Awareness of road safety, support to both project roads CNSR in mobile awareness units

Number of accidents on both In 2010: 162 In 2019: 100 Source: Statistics Outputs Risks project roads. CNSR People affected by the project are reluctant to Average household income En 2013: In 2019: 70 000 leave the work sites and relocate in the new

EFFETS (total/ male/female) 66 291 /72 000/ 52 000 marketplaces and car stations. Outcome 2: Living /67918 / 50662 Mitigating Measures conditions of Public awareness by local authorities and the Percentage of population In 2013: 7.2% In 2019: 5% Government along with compensation for populations improved Source: Statistics those people impacted by the project in the city of Parakou spending less than a dollar a INSAE day.

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Activity Rate In 2013 : In 2019 :

(Total/Male/Female) 66.3%/75.2% /57.7 67.5%/76.4% /59% %

Number of jobs created In 2013: 0 man- In 2019 : 5000 men- Sources: Office for

month month works oversight Output 1:Urban Length of roads rehabilitated In 2013: 0 km In 2019: 16.80 km Source: DGTP sections of roads built and opened to traffic Output 2: Municipal In 2013: In 2019 : Source: City Council infrastructure and 1. Number of social and 1. Number = 0 1. =11 of Parakou. women specific commercial infrastructure activities strengthened. rehabilitated. 2. Proportion of women 2. Number = 70% 2.= 75% operating in the three

PRODUITS markets;c 3. Number = 0 3. =2000 3. Number of youth and women trained 4. Length = 0 km 4. 7 km 4. Length of roads paved 5. Number of junctions built 5. Units : =0 5. 5 junctions

Output 3:Urban 1. Urban management In 2013: In 2019: governance and tools available (PDU, addressing plan, traffic No management All study reports are management tools developed plan, commercial tool developed available. facilities management body, etc.)

COMPONENTS RESOURCES (UA MILLION) 1.Road redesigning; 1. Road redesigning: 52.01 2. Freeing of the right-of-ways 2. Freeing of the right-of-ways: 5.85 3. Strengthening management aspects and municipal infrastructure 3. Renforcement de la gestion et des infrastructures municipales: 4. Project management. 10.16 4. Gestion du projet : 1.88 Imprévus et aléas : 8.27

ACTIVITÉSCLÉS TOTAL RESOURCES : 78.17

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Calendrier d’exécution

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REPORT AND RECOMMENDATIONS OF THE BAN