Labe-Seriba-Medina Gounass-Tambacounda Road Upgrading and Conakry-Dakar Corridor Transport Facilitation Program

AFRICAN DEVELOPMENT FUND LANGUAGE : ENGLISH ORIGINAL : FRENCH

APPRAISAL REPORT

LABE-SERIBA-MEDINA GOUNASS-TAMBACOUNDA ROAD UPGRADING AND CONAKRY-DAKAR CORRIDOR TRANSPORT FACILITATION PROGRAM

DEPARTMENT OF INFRASTRUCTURE OINF SEPTEMBER 2006

TABLE OF CONTENTS Pages PROGRAM INFORMATION SHEET, EQUIVALENTS, ACRONYMS AND ABBREVIATIONS, LIST OF ANNEXES AND TABLES, BASIC DATA, PROGRAM LOGICAL FRAMEWORK, EXECUTIVE SUMMARY i-xiv

I. INTRODUCTION 1 1.1 Program Origin and History 1

2. THE TRANSPORT SECTOR 2 2.1 General 2 2.2 Sector Overview 2 2.3 Transport Policy, Planning and Coordination 4

3. ROAD SUB-SECTOR 5 3.1 Road Network 5 3.2 Motor Vehicle Pool and Traffic 6 3.3 Road Transport Industry 6 3.4 Road Construction Industry 7 3.5 Road Network Management and Personnel Training 8 3.6 Road Maintenance 9 3.7 Financing of Investments and Road Maintenance 11

4. THE PROGRAM 12 4.1 Program Design and Rationale 12 4.2 Program Area of Influence and Beneficiaries 14 4.3 Strategic Context 17 4.4 Program Objectives 19 4.5 Program Description 19 4.6 Environmental Impacts 24 4.7 Program Cost Estimates 26 4.8 Financing Sources and Expenditure Schedule 28

5. PROGRAM IMPLEMENTATION 31 5.1 Executing Agency 31 5.2 Institutional Arrangements 32 5.3 Implementation and Supervision Schedule 32 5.4 Procurement Arrangements 34 5.5 Disbursement Arrangements 37 5.6 Monitoring and Evaluation 37 5.7 Financial Reports and Audit 38 5.8 Aid Coordination 39

6. PROGRAM SUSTAINABILITY AND RISKS 40 6.1 Recurrent Costs 40 6.2 Program Sustainability 40 6.3 Major Risks and Mitigating Measures 41

7. PROGRAM BENEFITS 42 7.1 Economic Analysis 42 7.2 Social Impact Analysis 43 7.3 Sensitivity Analysis 45

8. CONCLUSIONS AND RECOMMENDATIONS 45 8.1 Conclusions 45 8.2 Recommendations 46 ______This report has been prepared by Mr. M. SOUARE, Transport Engineer at OINF.1 (Ext.3622), Mrs. N. SENOU, Transport Economist at OINF 2 (Ext. 2632), Mr. M. MBODJ, and Transport Economist at OINF. 1 (Ext. 2348), Mr. H.B. SHALABY, Environmentalist at OSAN 3 (Ext.3006), and Ms. L. EHOUMAN, Socio-economist (Ext. 3442) following their appraisal mission to Senegal and Guinea from 17 August to 7 September 2006. The Director, OINF is Mr. G. MBESHERUBUSA (Ext. 2034) and the Division Manager in charge is Mr. A. KIES (OINF 3 Ext. 2282).

AFRICAN DEVELOPMENT FUND TRA-TUNIS P.O. Box 323 TUNIS-BELVEDERE 1002 Tel.: (216) 71 333 511 Fax: (216) 71 352 933 PROGRAM INFORMATION SHEET

Date: August 2006

The information given below is intended to provide some guidance to prospective suppliers, contractors and consultants and all persons interested in the procurement of goods and services for programs approved by the Boards of Directors of the Bank Group. More detailed information and guidance may be obtained from the Executing Agencies of the Borrower and the Donees.

1. COUNTRY : Multinational : Guinea/ Senegal

2. NAME OF PROGRAM : Labe-Seriba-Medina Gounass-Tambacounda Road Upgrading and Conakry-Dakar Corridor Transport Facilitation Program

3. LOCATION : Guinea and Senegal

4. BORROWER : Republic of Senegal 5. DONEES : WAEMU Commission 6. EXECUTING AGENCIES WAEMU Commission through the Department of Regional Development, Infrastructure, Transport and Telecommunications (DATC) for general monitoring of the Program, Rue Agostino Neto, Ouagadougou, Burkina Faso ; 01 BP 543, Tel : (226) 50318873/76, Fax : (226)50318872 ;mail: [email protected]

For program monitoring at the national level (i) Direction Nationale des Investissements Routiers (DNIR) of the Ministry of Public Works, P.O. Box 581, Conakry, Guinea , Tel : (224) 60-45-45-31; Fax.(224) 43-47-34 ; and

(ii) Agence Autonome des Travaux Routiers (AATR) Supervised by the Ministry of Infrastructure, Land Transport facilities and Internal Maritime Transport (MIETTTMI) ; rue David DIOP x F, Fann Résidence; P.O.Box 25242, Dakar (Senegal) ; Tel : (221) 869-07-51; Fax : (221) 864-48-33; email : [email protected]

7. PROGRAM DESCRIPTION

The program components are as follows:

A UPGRADING AND REHABILITATION OF ROADS A1 Upgrading of 385 km of earth road into a tarred road between Labé and Médina Gounass, of which 316 km in Guinean territory, including the Koundara access road (12 km), and 69 km in Senegalese territory; A.2 Rehabilitation of 89 km of tarred road in Senegal between Médina Gounass and Tambacounda, including the Daka access road (9 km); A.3 Environmental impact mitigation works; A.4 Sensitization to road safety, environmental protection, malaria, and STIs, of which HIV/AIDS etc.; and A.5 Control and supervision of works

B RELATED WORKS B.1 Upgrading of rural feeder roads; B.2. Rehabilitation of social and commercial infrastructure; B.3. Drilling of boreholes for drinking water points; and B.4. Control and supervision of works

C TRANSPORT AND TRANSIT FACILITATION ACTIONS AND MEASURES C.1 - Studies on the installation of radio communication and the construction of a juxtaposed checkpoint at the border; C.2 - Construction of an equipped juxtaposed checkpoint at the Guinea/ Senegal border; C.3 - Supply and installation of axle-load scales on the corridor; C.4 - Installation of radio communication system; C.5 - Control and supervision of works; and C.6 - Seminars / study trips/sensitization of stakeholders

D INSTITUTIONAL SUPPORT AND PROGRAM MANAGEMENT D.1 Functioning of program coordination at the level of WAEMU, the Joint Technical Committee and the Ministries of Roads, Transport and the Environment of the two countries responsible for monitoring the program D.2 Monitoring and Evaluation (8 reports) D.3 Auditing of program accounts

8. TOTAL COST Program Cost : UA 147.76 million i) Foreign Exchange Cost : UA 117.8 million ii) Local Currency Cost : UA 29.96 million

9. ADF LOAN/GRANT iii

• ADF Loan : UA 20.5 million • ADF grant : UA 35.9 million

10. OTHER FINANCING SOURCES

• WADB : UA 3.93 million • SDF/KFAED : UA 44.47 million • ABEDA/IDB/Others : UA 27.4 million • Private hauliers : UA 0.16 million • WAEMU : UA 0.59 million • Government of Guinea : UA 10.14 million • Government of Senegal : UA 4.66 million

11. LOAN APPROVAL DATE : November-2006

12. ESTIMATED START-UP DATE AND DURATION : April-2007 / 39 months

13. PROCUREMENT OF WORKS, GOODS AND SERVICES

• PROCUREMENT OF GOODS AND WORKS : The road works, related works and construction of the juxtaposed check point at the border will be procured through international competitive bidding. Goods (radio communication and axle– load scales) will be procured through international competitive bidding. Goods for the functioning of the executing agencies will be procured through national shopping.

• CONSULTANCY SERVICES REQUIRED AND STAGE OF SELECTION : Consultancy services required for studies, works control and supervision, accounting and financial audit, sensitization, monitoring and evaluation and training will be procured through shortlisting. Consultancy services for training will be procured through direct negotiation with specialized structures.

14. ENVIRONMENTAL CATEGORY OF PROGRAM : I iv

CURRENCY EQUIVALENTS (August 2006)

UA 1 = CFAF 762.393 UA 1 = GNF 7060.22 UA 1 = € 1.1623 UA 1 = USD 1.48386

FISCAL YEAR 1 January - 31 December

WEIGHTS AND MEASURES

1 kilogramme (kg) = 2.205 lbs 1 metre (m) = 3.29 feet (ft) 1 kilometre (km) = 0.621 mile 1 square kilometre (km2) = 0.3861 sq mile 1 hectare (ha) = 2.471 acres

ACRONYMS AND ABBREVIATIONS

AATR : Road Works Agency (Senegal) AFD : French Development Agency AR : Highways Authority ADB : African Development Bank ADF : African Development Fund WADB : West African Development Bank CFP : Training Centre CILSS : Permanent Inter-State Committee on Drought Control in the Sahel COSCAP Cooperative Development of Operational Safety and Continuing Airworthiness CFAF : CFA Franc CET : Common External Tariff CW : Civil Works DAI : Directorate of Regional Development and Infrastructure DATC : Département de l’Aménagement du Territoire Communautaire, (Directorate of Community Regional Development) DNIR : Direction Nationale des Investissements Routiers (National Directorate of Road Investments) DTT : Directorate of Transport and Telecommunications ECOWAS : Economic Community of West African States EDF : European Development Fund EPPS : Poverty Profile Survey in Senegal EU : European Union FER : Fonds d’Entretien Routier (Road Maintenance Fund) FERA : Fonds d’Entretien Routier Autonome (Autonomous Road Maintenance Fund) FRDC : Regional Fund for Community Development GAINDE : Computerized Management of Customs and Economic Information of Senegal HA : Hunting Areas ICB : International Competitive Bidding v

ICTARN : Instructions for the Technical Design and Rehabilitation of National Highways IDA : International Development Association IRI : International Roughness index IRR : Internal Rate of Return IRT : Interstate Road Transit MTP : Ministry of Public Works in Guinea MIETTTMI : Ministry of Infrastructure, Land Transport Facilities and Inland Maritime Transport (Senegal) NCB : National Competitive Bidding NEPAD : New Partnership for Africa’s Development NH : National Highway OMAOC : Maritime Organisation of West and Central Africa PACITR : Community Program of Actions for Infrastructure and Road Transport STAP : NEPAD Infrastructure Short-term Action Plan PIPPublic Investment Program PPSS : Poverty Profile Survey in Senegal PW : Public Works REC : Regional Economic Community RM : Road Maintenance RDF : Road Development Fund SME : Small and Medium Sized Enterprise SIAM : System of advance information on goods SYDAM : Computerized System of Customs Clearance of Goods (Côte d’Ivoire) SYDONIA : Computerized Customs System SCD : Single Customs Declaration TSP : Transport Sector Program TIE : Inter-State Transport TK : Tonne kilometre UNCTAD : United Nations Conference on Trade and Development Veh/d : Vehicles per day VWS : Village water supply WAEMU : West African Economic and Monetary Union ZIDP : Immediate program area ZIEP : Extended program area ZIRP : Limited program area

LIST OF ANNEXES

N° TITLE N° of pages 1. Map of the Program Area 1 2 Organization Chart of Program Executing Agency 1 3. Financing Plan by Expenditure Category and by Financing Source of the ADF Program 1 4. Program Implementation Schedule 1 5. Implementation Schedule. 1 6. Summary of Economic Analysis 4 7. Bank Commitments of in Guinea and Senegal 2 8. List of Related Works 1 9. List of Documents Consulted and Program Preparation Schedule 2

LIST OF TABLES No. TITLE PAGE

Table 4.1 : Summary of Estimated Costs by Component for the Entire Program 26 Table 4.2 : Summary of Estimated Costs by ADF Program Component 27 Table 4.3 : Summary of Estimated Costs by Expenditure Category of the Entire 27 Table 4.4 : Summary of Estimated Costs by Expenditure category of ADF Program 28 Table 4.5 : Financing Sources of the Entire Program 29 Table 4.6 : Financing Sources of ADF program 29 Table 4.7 : Financing Sources by Expenditure Category of the Entire Program Table 4.8 : Expenditure Schedule by Component of the Entire Program 30 Table 4.9 : Expenditure Schedule by Component of ADF Program 30 Table 4.10 : Expenditure Schedule by Financing Source of the Entire Program 31 Table 4.11 : Expenditure Schedule by Financing Source of the ADF Program 31 Table 5.1 : Implementation Schedule 33 Table 5.2 : Estimated Supervision Schedule 34 Table 5.3 : Works and Services Procurement Arrangements 35

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MULTINATIONAL: WAEMU/GUINEA-SENEGAL Labé- Sériba- Médina Gounass- Tambacounda Road Upgrading and Transport Facilitation on the Conakry-Dakar Corridor Program Logical Framework (LOAN)

Start-up : April 2007 Completion date: : December 2010 Design team: : Messrs. M. SOURE, M. MBODJ, Mrs. N SENOU, Ms L. EHOUMAN and H.R SHALABY OSAN

HIERARCHY OF EXPECTED PERFORMANCE OBJECTIVELY ASSUMPTIONS/ OBJECTIVES OUTCOMES by SCOPE INDICATORS VERIFIABLE INDICATORS RISKS sector and Source and method AND TIME-FRAME corresponding themes LONG TERM SECTOR GOAL 1.1 Contribute to 1.1 Intra-community 1.1 .ECOWAS 1.1. Level of intra-community and 1.1 .Intra-community trade level increases from 10% 1.1 .Ending of the and external trade (WAEMU) external trade in 2005 to 30% in 2015 conflicts in West strengthening have grown community Source: ECOWAS statistics 1.2 External trade level increases by 10% by 2015. Africa of economic area Methods: Statistics prepared 1.2.Pursuit of integration and by member countries Source : ECOWAS statistics integration promotion of Methods: Statistics prepared by member countries policy by the trade among States member countries of ECOWAS

MEDIUM TERM PROJECT 1 (i) improved service OBJECTIVES level of corridor 1. (i) proportion of road lengths in 1. (i) percentage of good roads on the corridor increases 1. Second- generation 1. Promote trade roads,(ii)substantial The two good condition on the corridor, from 50% in 2005 to 90% by 2010, (ii) by 2010: the Road Fund set up between Senegal import/export and countries (Guinea (ii) time spent on goods Senegalese territory crossing time reduces from 3 and fully and Guinea and corridor travel time and Senegal) removal at the port, crossing the days in 2005 to 1 day and border crossing time operational in remove the saved territories and customs between the two countries reduces from 1 day in Guinea and in constraints on 2. Road infrastructure formalities at the border of the 2005 to 2 hours. Senegal. traffic in order to saved from early two countries 2. Orders governing axle load issued in Guinea and 2. The instruments reduce general degradation 2. Instruments governing axle Senegal in 2006; axle load scales installed on the governing axle load transport costs 3 .Improved load and instituting control of corridor in 2008. control are 2. Improve the accessibility of the said loads 3. Drop in number of accidents around roadside schools, enforced sustainability of populations to socio- 3. Safety in school premises by about 10% investments by economic controlling axle infrastructure. Sources: MTP in Guinea and Sources: MTP in Guinea and MIETTTMI in Senegal, loads. MIETTTMI in Senegal, DG of Customs in both countries, DPA, corridor 3. Improve the Customs DG in both countries, management committee, local councils and authorities living conditions DPA, WAEMU and corridor Methods: Statistics prepared, surveys on the corridor of project area management committee dwellers. Methods: Statistics prepared, surveys on the corridor

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SHORT TERM OUTPUTS ACTIVITIES AND IN-PUTS 1. The missing road 1. Upgrading and links are built Area connected 1. Length of road upgraded or /or strengthening 2. Socio-economic to corridor from rehabilitated of the corridor infrastructure is Conakry to 2. Number of socio-economic 1. 70 Km of earth road upgraded into tarred road roads (UA 33.03 constructed or Dakar facilities built or rehabilitated. between the Guinea/ Senegal border and Médina million) rehabilitated in 3. Number of juxtaposed control Gounass and 89km of road rehabilitated between 2. Related works Senegal posts built, number of facilities Médina Gounass and Tambacounda in Senegal (UA 1.32 3. Project put in place, number of persons 2. 121 km of rural roads provided;7 schools fenced million) implementation is sensitized to the exploitation and/or rehabilitated, 3 boreholes drilled ; a motor 3. Transport facilitated; the and utilization of the corridor, park and a market reconstructed in Senegal; etc. facilitation and population of the number of participants at 3. 2 vehicles provided to the program officer and the transit measures PA and corridor seminars and corridor Tambacounda public Works Division; 400 000 and actions (UA users are sensitized management case study trips. persons sensitized to HIV/AIDS, malaria and 5.20 million) to HIV/AIDS, 4. Number of socio-economic environmental protection, etc 4. Program malaria, road surveys on the corridor; number 4. a program officer appointed management safety, of equipment provided to the (UA 1.17 environmental AATR for program monitoring Sources: AATR/MIETTTMI, DNIR/MTP million) protection.,etc. . Number of persons sensitized Methods: monthly reports and periodic reports, surveys to HIV/AIDS, malaria, road safety, and environmental protection, in Senegal Sources:, AATR/MIETTTMI, DNIR/MTP Methods: monthly reports and periodic reports.

MULTINATIONAL: WAEMU/GUINEA/SENEGAL Labé-Sériba- Médina- Gounass Road Upgrading and Transport Facilitation on the Conakry-Dakar Corridor Program Logical Framework (GRANTS)

Start-up date : April 2007 Completion date: : December 2010 Design team : Mr. M. SOUARE, Mr. M.MBODJ, Mrs. N. SENOU, Ms L.EHOUMAN and H.R.SHALABY,OSAN

EXPECTED PERFORMANCE INDICATORS OBJECTIVELY VERIFIABLE ASSUMPTIONS/ HIERARCHY OF OUTCOMES by SCOPE Source and method INDICATORS AND DATES RISKS OBJECTIVES sector and corresponding themes LONG TERM SECTOR GOAL 1.1 Contribute to the 1.1. Intra-community 1.1.ECOWAS 1.1. Level of intra-community trade 1.1.Intra-community trade level increase from 10% in 1.1.Ending of strengthening of and external trade (community and with Guinea 2005 to 30% in 2015 conflicts in West economic have grown area) Source: ECOWAS (WAEMU) 1.2.Level of external trade increase by 10% by 2015. Africa integration and statistics 1.2.Pursuit of the promote trade Methods: Statistics prepared by Source : ECOWAS (WAEMU) statistics policy of among member member countries Methods: Statistics prepared by member countries integration by countries of states WAEMU and ECOWAS

MEDIUM TERM PROJECT 1. (i) improved OBJECTIVES service level of 1. (i) proportion of road lengths in 1. (i) percentage of good roads on the corridor increases 1. Second 1. Promote trade corridor The two good condition on the corridor, from 50% in 2005 to 90% by 2010, (ii) by 2010: the generation Road between Senegal roads,(ii)substantial countries (ii) time spent on goods removal Senegalese territory crossing time reduces from 3 days Fund fully and Guinea and import/export and (Guinea and at the port, crossing the territories in 2005 to 1 day and border crossing time between the operational in remove the corridor travel time Senegal) and customs formalities at the two countries reduces from 1 day in 2005 to 2 hours. Guinea and constraints on saved border of the two countries 2. Instruments governing axle load harmonized between Senegal. traffic in order to 2. Road 2. Instruments governing axle load WAEMU space and in Guinea in 2007; axle load 2. The instruments reduce general infrastructure is saved and instituting control of the said scales installed on the corridor in 2008. governing axle transport costs from early loads load control are 2. Improve the degradation 3. School enrollment rate and enforced sustainability of 3. .Improved distances covered on foot to fetch Sources: MTP in Guinea and MIETTTMI in Senegal, DG investments by accessibility of water of Customs in both countries, DPA, corridor management controlling axle populations to socio- committee, local councils and authorities loads. economic Sources: MTP in Guinea and Methods: Statistics prepared, surveys on the corridor 3. Improve the living infrastructure. MIETTTMI in Senegal, Customs DG conditions of in both countries, DPA, WAEMU project area and corridor management committee dwellers. Methods: Statistics prepared surveys on the corridor x

SHORT TERM OUTPUTS ACTIVITIES AND IN-PUTS 1 The missing good 4. Construction of the quality road links of Area covered 1. Length of road constructed or 1. 316 km of road built in Guinea between the corridor roads the Conakry-Dakar by Conakry- rehabilitated Senegal border and Labé, including the 12.5 (UA 24.24 corridor are built or Dakar corridor 2. Number of socio-economic km of the Koundara connecting road million) rehabilitated c facilities built or rehabilitated. 2. 69 km of rural roads provided in Guinea: 4 5. Construction or 2. Socio-economic 3. Number of juxtaposed control boreholes drilled in Guinea, 12 schools fenced rehabilitation of facilities are posts built, number of facilities and/or rehabilitated in Guinea, 3 market sheds socio-economic constructed or put in place, number of persons built in Guinea, etc. infrastructure (UA rehabilitated along sensitized to the exploitation and 3. 1 (one) juxtaposed checkpoint built and 2.93 million) the corridor in utilization of the corridor, number equipped at the border between the two Guinea of participants at seminars and countries, including radio equipment installed 3. Check points are corridor management case study on the corridor; 50 workers trained; 1000 users reduced and travel trips. sensitized on the corridor time is reduced 4. Number of socio-economic 4. 4 (four) corridor monitoring and evaluation 4. Project surveys on the corridor; number surveys; 2 vehicles provide to the program implementation is of equipment provided to the Officer and the DNIR Division at Labé; facilitated; the AATR and DNIR for monitoring 500 000 persons sensitized to HIV/AIDS, population of the the program. Number of persons environmental protection and malaria, one PA and corridor sensitized to HIV/AIDS, malaria, forest guard station built and equipped; 4 audit users are sensitized road safety, environmental reports produced; 1 Program officer appointed, to HIV/AIDS, protection, girl child education; 1JTC of 9 members set up to monitor the malaria, road number of audit reports produced; program safety, Sources : DATC/WAEMU, AATR/MIETTMI, environmental Sources: DTAC,/WAEMU, DNIR/ MTP protection. AATR/MIETTTMI, DNIR/MTP Methods monthly reports and periodic reports, Transport operators Methods: monthly reports and surveys are sensitized to periodic reports, surveys. program objectives.

EXECUTIVE SUMMARY

1. PROGRAM ORIGIN AND HISTORY

1.1. The Labé-Tambacounda road upgrading project came into being in the 80s as a result of the common determination of Guinea and Senegal to strengthen their economic cooperation ties. In 1999, this road was included in the ECOWAS regional transport program (as CW/TR- 38/99) and in 2002, in the WAEMU community infrastructure and Road Transport development program (PACITR), referred to as community highway Cu11, for the section falling within WAEMU space.

1.2. Aware of the need to construct this road link whose socio-economic impact will benefit not only the two States, but also neighbouring countries such as Mali, Guinea Bissau, Mauritania and Burkina Faso, the two Governments requested and obtained financing from the Islamic Development Bank (IDB) to carry out a study. The feasibility study was conducted in 1999 and updated in 2004. Detailed design socio-economic and environmental studies were conducted between 2005 and June 2006.

1.3. In 2001, the two countries included this program in their priorities and in December 2000 and March 2001 requested financing from the Bank. In November 2005, a round-table conference of donor for this program, which the Bank attended, was held in Conakry. Following this meeting, the program was allocated and the financing arrangements completed.

1.4. This program was prepared using a participatory approach mainly among the riparian population, transport sector operators and Government authorities (customs, police, gendarmerie) involved in the transport system. The program benefited from the outcome of meetings and consultations initiated since 2002 within ECOWAS, which led to the adoption of a regional road transport and transit facilitation. It benefits from progress noted in terms of implementation of such facilitation under the 1st program financed by the Bank and other donors (WAEMU / Ghana: PR-1) approved in December 2003.

2. LOAN AND GRANTS PROPOSAL

The ADF loan of UA 20.5 million representing 13.88% of total program cost exclusive of taxes will be used to finance 15.83% of the program cost in foreign exchange and 6.18% in local currency. The ADF grants of a total amount UA 35.90 million representing 24.3% of total program cost exclusive of taxes, will be used to finance 27.26% of program cost in foreign exchange and 12.627% in local currency.

3. SECTOR GOALS AND SPECIFIC OBJECTIVES OF THE PROGRAM

At the sector level, the goal of the program is to contribute to the strengthening of economic integration and sub regional cooperation among ECOWAS member countries. The specific objective is to (i) foster economic exchanges between Guinea and Senegal and remove constraints on movement so as to reduce overall transport costs; (ii) improve the sustainability of investments by controlling axle loads; and (iii) improve the living conditions of project area dwellers.

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4. PROGRAM OUTPUTS

To attain the above-mentioned objectives, the following outputs are expected:

(i) 385 km of earth road upgraded into an tarred road between Labe and Médina Gounass, of which 316 km in Guinean territory, including the Koundara access road (12 km), and 69 km in Senegalese territory;

(ii) 89 km of tarred road rehabilitated between Medina Gounass and Tambacounda, including the Daka access road (9 km) in Senegal;

(iii) 190 km of rural roads connected to the major highway built in the two countries; 4 boreholes drilled in Guinea and 3 boreholes drilled in Senegal; 17 schools rehabilitated and/or fenced of which 7 in Senegal; resting areas for drivers provided throughout the corridor; 5 commercial facilities of which 1 motor park and 4 markets reconstructed; 2 forest guard posts built and equipped;

(iv) 1 equipped juxtaposed checkpoint built at the border between the two countries, fixed axle load scales and radio equipment supplied and installed; 50 workers from the two countries trained; 1000 users sensitized to the corridor concept.

(v) 4 monitoring and evaluation surveys of the socio-economic and environmental impact of the program conducted; 4 vehicles made available to the appointed program officers at AATR and DNIR and at their regional Divisions in Labe and Tambacounda; 1 million persons sensitized to HIV/AIDS, etc; 4 audit reports produced, two project officers appointed : 1 JTC of 9 members put in place to monitor the program.

5. PROGRAM COST

The estimated cost exclusive of taxes and customs duties of the entire program is UA 147.76 million, of which UA 117.8 million in foreign exchange and UA 29.96 million in local currency. The estimated cost of the components jointly financed by ADF, WADB, WAEMU, private transporters and the two Governments is UA 67.91 million of which UA 53.95 million in foreign exchange and UA 13.96 million in local currency.

6. FINANCING SOURCES

6.1 The program will be jointly financed by ADF, WADB, WAEMU, private transport operators), and the two Governments and at the same time by other donors (ABEDA/IDB/Others and SDF/KFAED/OPEC). The ADF grants will be used to finance part of the cost of (i) the components “transport facilitation” and “program management”; the works and control of the road upgrading and related works in Guinea, notably the 128 km of the Bouméhoun-Border road section and the Koundara access road; (ii) the works and control of the mitigation of negative environmental impacts in Guinea; (iv) sensitization to road safety, malaria, HIV/AIDS and environmental protection in Guinea. The ADF loan will be used to finance part of the cost of: (i) the works and control of rehabilitation and related works of 89km of road from Tambacounda to Médina Gounass in Senegal, including the Daka access road; (ii) works and control of mitigation xiii of the negative environmental impacts in Senegal; and (iii) sensitization to road safety, malaria, HIV/AIDS and environmental protection in Senegal. Total contribution from ADF of UA 56.4 million represents 38.17% of total program cost, and will be used to cover 43.1% of total program cost in foreign exchange and 18.8% in local currency.

6.2 WADB will contribute to the financing of part of (i) the works and control of the rehabilitation works on the 89 km of the Tambacounda - Médina road stretch and an access road in Senegal. WAEMU will contribute to the financing of part of the “transport facilitation” and “program management” components. The private transport sector operators will finance the installation of radio receivers on board their inter-state transport vehicles. The contribution of the other donors (ABEDA/IDB/Others and SDF/KFAED/OPEC) will be used to finance part of the cost of road works and their control in the two countries as well as technical assistance in Guinea. Contributions from the two Governments will be used to finance part of the road works and their control, related works and environmental protection works, as well as sensitization and program management. The cost of expropriation will be totally financed by the two Governments.

7. PROGRAM IMPLEMENTATION

The program will run from April 2007 to August 2010, that is approximately 39 months.

8. CONCLUSIONS AND RECOMMENDATIONS

8.1 Conclusions

8.1.1 The implementation of the program will permit the opening up of the high agricultural and livestock potential areas in Guinea and Senegal and contribute to the strengthening of regional cooperation and economic integration by reducing non-tariff barriers and ‘ invisible’ costs. It will permit the development of business activities along the corridor on account of the savings generated by the reduced illicit charges along the corridor.

8.1.2 The program will contribute to poverty reduction, training of transport chain operators and stakeholders of the corridor. The formulation of the program also benefited from lessons learnt from our operations in the two countries, from Road Program 1 (WAEMU/ Ghana) as well as those of other donors.

8.1.3 The program has been well designed technically and benefited from detailed road studies. Its negative impacts on the environment have been defined and mitigating measures taken into account. The program is economically viable, with an average economic rate of return of 14.79%. The sustainability of investments is guaranteed thanks to the strengthening of axle load and gross weight of vehicles designed for inter-State transport, and to the technical strengthening solutions adopted. Lastly, the formulation of the project benefited from the lessons from our operations in Guinea and Senegal, as well as those of the other donors, in particular with regard to procurement procedure, mobilization of counterpart funds, sustainability of investments, monitoring of project implementation and taking into account the socio-economic infrastructure for the benefit of the local population.

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9. RECOMMENDATIONS

In light of the foregoing, it is recommended that an ADF loan not exceeding UA 20.5 million be awarded to the Republic of Senegal, an ADF grant not exceeding UA 30.32 million to the Government of the Republic of Guinea and an ADF grant not exceeding UA 5.58 million to the WAEMU Commission. The said loan and grants will be used for implementation of the program as designed and described in this Report and will be subject to the conditions specified in the Loan Agreement and the Memoranda of Understanding.

1. INTRODUCTION

1.1 Program Origin and History

1.1.1 The Labe-Tambacounda road upgrading project came into being in the 80s as a result of the common determination of Guinea and Senegal to strengthen their economic cooperation ties. In 1999, this road was included in the ECOWAS regional transport program (as CW/TR- 38/99) and in 2002, in the WAEMU community infrastructures and Road Transport development program (PACITR), referred to as community highway Cu11, for the section falling within WAEMU space.

1.1.2 Conscious of the need to construct this road link whose socio-economic impact will benefit not only the two States, but also neighbouring countries such as Mali, Guinea Bissau, Mauritania and Burkina Faso, the two Governments requested and obtained financing from the Islamic Development Bank (IDB) to carry out a study. The feasibility study was conducted in 1999 and updated in 2004. Detailed design socio-economic and environmental studies were conducted between 2005 and June 2006. In November 2005, a donor round table on this program, which the Bank attended, was held in Conakry. Following this meeting, the program was apportioned and the financing arrangements almost completed.

1.1.3 In March – April 2006, the Bank conducted a program preparation mission. This mission noted: (i) obstacles to traffic flow on the tarred road stretches of the corridor with their spin-off such as the congestion of Conakry and Dakar ports (ii) the non-enforcement of inter- State road transport and transit agreements (TRIE) and TIE signed by all States of ECOWAS; and (iii) non-compliance with axle load regulations. These were the reasons for adopting the Conakry – Dakar corridor approach in the form of a program which incorporates the transport facilitation. In this regard, on the proposal of the Senegalese Government, the decision has been taken to include in the program, the rehabilitation of the Tambacounda-Médina Gonnass road section. The program moreover supplements previous or ongoing Bank operations (Dakar – Bamako via the South between Senegal and Mali, Tombo – Gbessia in Guinea).

1.1.4 This report has been prepared on the basis of: (i) the outcome of meetings and consultations initiated since 2002 within ECOWAS, which led to the adoption of a regional road transport and transit facilitation. (ii) strategy studies of priority investments of the PACITR of WAEMU ; (iii) progress noted in terms of implementation of such facilitation under the 1st program financed by the Bank and other donors (WAEMU / Ghana: PR-1) approved in December 2003. (iv) various preparatory reports and studies of the road ; (v) information gathered during discussions held by the preparation missions with the authorities, the local population and operators in the transport system and services concerned, (vi) recent information on developments in the transport sector, strategy in the two countries; and (vii) meetings with donors supporting the transport sector in the two countries.

1.1.5 The entire programme is in conformity with the objectives of the New Partnership for Africa’s Development (NEPAD) and is part of its infrastructure Short-term Action Plan (STAP). Furthermore, its proposed financing by ADF is consistent with the Fund’s strategy in Guinea and Senegal. In fact, it is in keeping with Pillar I of the 2005-2007 CSP for Guinea and Pillar II of the 2005-2009 CSP for Senegal. Similarly, it is in line with the strategic vision of the Bank which prioritises the strengthening of sub-regional economic integration.

2 TRANSPORT SECTOR

2.1 General

2.1.1 The transport sector in ECOWAS States occupies an important place in investment programs given its key role in strengthening the economic integration and the development of the economic activities of the region. It contributes on average nearly 6% of the Gross Domestic Product (GDP) of these countries. This contribution is partly related to the buoyancy of intra- community trade which has in recent years registered an average annual growth rate of over 10%. Within the community, there are four main modes of transport, namely road, railway, waterways and air.

2.1.2 For intra-community trade, ECOWAS countries have road corridors that are operational or under construction as well as railway networks, most of which are not yet interconnected. A feasibility study of this interconnection financed by ADF is imminent. In the short term, the cross border road transport and transit facilitation of ECOWAS aims, as within the framework of NEPAD, to reduce turnaround time at ports and borders as well as territory crossing time. To facilitate import – export transactions, one-stop shops within the same premises of the external trade services have been put in place in its countries. Concerning customs most ECOWAS countries have adopted the Automated System for Customs Data (ASYCUDA) of UNCTAD except for Senegal with GAINDE and Ghana with GCNET which have their own systems. A study on the interconnection of community customs systems is underway.

2.2 Sector Overview

Road Transport

2.2.1 Road transport in the ECOWAS area constitutes the principal mode of domestic transport and covers at least 90% of all passenger and goods transport. Accordingly, it is predominant in intra-community trade. Urban, peri-urban and interurban transport in States of the community is provided in general by small operators using minibuses or in some countries, motorcycle taxis. At the regional level, road transport represents nearly 80% of inter-State goods transport demand. In Guinea, road transport covers an average 95% of domestic traffic on account of its flexibility and the disappearance of railway passenger transport. In Senegal, the share of domestic road transport is estimated at over 90%.

2.2.2 Road transport activity is constrained by the mismatch between supply and demand. It is still poorly organized and unprofessionalized. Operators face numerous check points and illegal financial charges on the highways which swell their operating costs. Other constraints in road transport development concern the service level of roads which is still inadequate. Guinea is making considerable efforts to significantly reduce the number of legal and illegal checkpoints on its road networks. In Senegal the measures taken to that end have not yielded conclusive results on the ground.

Railroad Transport

2.2.3 ECOWAS countries have a railroad network of a total length of 4000 km of railway, of which more than half is in an advanced state of obsolescence with very restrictive lay-out features. These railway lines are not interconnected. These networks include three with a regional vocation, namely: (i) the Abidjan, Bob-Dioulasso-Ouagadougou-Kaya line which is 1,261 km long and managed by a private company SITARAIL which prior to the Ivorian crisis, recorded a rise in its total goods traffic over a five-year period, from 250 000 tonnes to one million tonnes, while passenger traffic reduced by half; (ii) the Bamako-Dakar line (1.233 km) transferred in September 2003 to TRANSRAIL a private company whose international freight traffic registered an annual average growth rate of 105%, from 382,000 tonnes in 2002 to about 515,000 tonnes in 2005 and (iii) the Cotonou – Parakou line which is 448km long and extended to Niger by a road transport system after trans-shipment at Parakou and managed by the Office du Chemin de fer Benin – Niger (OCBN), whose freight traffic has been on the decline for a few years, owing to the poor performances of Cotonou port and the obsolete railway.

2.2.4 The public railway network in Guinea comprises a single line of 662 km limited to passenger transport on the 36 km urban section situated in Conakry and operated by Office National des Chemins de Fer de Guinée (ONCHG). The transport of minerals is the main focal area of the private sector rail transport with 385 km of track linking the bauxite mines to the ports of Kamsar and Conakry. This traffic represents per year over 10 millions tonnes of bauxite and about 500,000 tonnes of alumina. In Senegal railroad transport is showing some signs of vitality since the concessioning of the Dakar – Bamako line. The operation of the other domestic lines has been abandoned, except those serving some mining industries (phosphates at Taïba, Senegal) and le Petit Train Bleu serving suburban Dakar.

River and Sea Transport

2.2.5 ECOWAS countries have over ten sea ports which handle the bulk of international traffic between countries of the Community and the rest of the world. The handling and storage capacities of these ports seem fairly adequate to meet the Union’s current needs. Most of these ports provide warehousing facilities to the landlocked countries of the Community (Burkina, Niger, Mali) in order to attract transit traffic which in 2002 represented approximately 4.2 million tonnes. However, despite the containerization efforts made, the port transit and turn-around time costs in the ports used by countries of the Community remain high, due mainly to non- harmonization of computerized customs systems. A study on such harmonization is under way.

2.2.6 In Guinea, maritime transport is carried out through: (i) two deep sea ports, one in Conakry run by the Conakry Port Authority, and the other in Kamsar, managed by the “Compagnie de Bauxite de Guinée”; and (ii) several secondary ports and unloading docks. The Government is taking measures to open the Conakry port to land locked countries in particular through (i) the Kankan – Bamako road project financed by ADF and which is nearing completion; (ii) making available to Mali a port area for its goods transit; (iii) imminent extension of Conakry port to facilitate processing of container traffic. Conakry port traffic reached approximately 6.08 million tonnes in 2005 of which 13% was container traffic. With a coastline of over 700 km, Senegal has a deep sea port in Dakar and three secondary ports at Saint-Louis, Kaolack and Ziguinchor managed by the Dakar port authority (PAD). To improve its 4 performances, the Dakar port has a fixed scanner capable of screening the contents of a container in less than a minute and will soon be equipped with a mobile scanner axle-load scales. For some of its external trade, Mali uses Dakar port where it has special warehouses. The improvements undertaken in recent years at Dakar port have enabled it to increase its goods traffic from about 7.2 million tonnes in 1999 to 9.9 million tonnes in 2005.

2.2.7 Navigable waterways remain insignificant in the transport system of the two countries although they are crossed by major river basins, i.e. the Senegal, Saloum, Casamance and Niger rivers) owing to significant seasonal discharge variations. Traffic is not well-known, but these rivers are expected to play a role in intra-community trade as indicated in the NEPAD infrastructure short-term action plan. Projects are in the pipeline at the Senegal River Development Organization and the Office du Niger to make the Niger and Senegal rivers navigable.

Air Transport

2.2.8 ECOWAS countries have over 15 international airports and several secondary airports. The capacities range from 10,000 to 3,000,000 passengers and 2,000 to 40,000 tonnes of freight. The infrastructure and equipment of international airports of countries of the Union are generally in good condition, thanks to an appropriate policy of maintenance and renewal of airport facilities. The secondary airports have landing strips of varying characteristics (tarred or laterite runways) and are poorly maintained. Domestic air transport demand is relatively low. The 1999 Yamoussoukro Decision to free the African skies has led to the emergence in West Africa of several air carriers. Under NEPAD, the COSCAP project which was approved in 2005 by ADF and financed by other donors (World Bank, EDF and ADF) and coordinated by ICAO will support States to strengthen their air safety and security capacities. Furthermore, the World Bank is providing support to strengthen safety and security in certain airports of the area including that of Conakry.

2.2.9 Guinea has an airport network made up of the Conakry Gbessia international airport and 3 (three) regional airports at Kankan, Labé and Nzérékoré; eleven secondary airports scattered countrywide of which 5 (five) are operated by mining companies. The infrastructure and facilities of the Conakry airport are in good condition and operational. The traffic recorded by this airport in 2005 was about 251,000 passengers and 4,700 tonnes of freight. Senegal has one international airport at Dakar (Léopold Sédar Senghor), four airports of average importance at Saint-Louis, Ziguinchor, Cap Skiring and Tambacounda and twelve secondary airports in various parts of the country. The service level of Dakar airport is satisfactory. The characteristics of this airport and its facilities are compatible with its annual average traffic of 1.37 million passengers broken down as follows: (73%), regional traffic (24%) and domestic traffic (3%).

2.3 Transport Policy, Planning and Coordination

2.3.1 Transport sector policies in ECOWAS countries seek to gradually eliminate the rigidities and dysfunctions that characterize their systems and which swell transport costs. These policies aim to (i) improve the state and service level of transport networks; (ii) establish an enabling environment for private sector development and efficiency; (iii) improve and strengthen the management and planning capacities of structures in charge of the transport networks and (iv) 5 ensure the sustainability of the system of financing road maintenance and increase transport infrastructure maintenance resources, in particular for road infrastructure. For the latter, emphasis is on the creation of a second generation road fund in each ECOWAS country which should provide a lasting solution to the deficiencies in road network maintenance.

2.3.2 The institutional reforms implemented in the sector in the last ten years under the impetus of donors, including the Bank, pursue these objectives. They have led to (i) in Guinea and Senegal in particular the privatisation of road maintenance and the gradual emergence of private operators on the road construction and maintenance market, (ii) in Guinea the establishment of a second generation road fund, and in Senegal improve planning and coordination of road sub-sector activities by the creation of and autonomous road works Agency, these actions should be pursued and consolidated through coherent programs bases on current gains and needs ; and in the medium term as concerns transport infrastructure maintenance and development.

2.3.3 At the Community level, integrative actions in the transport sector are increasingly being planned programmed and coordinated by the ECOWAS Secretariat, in coordination with NEPAD and with the support notably of WAEMU. This role played by the Union was reaffirmed following the preparation meeting on regional road transport and transit facilitation organized in August 2003 in Ouagadougou, jointly by ECOWAS and WAEMU. In each ECOWAS country, transport planning and coordination and implementation of related program is primarily the responsibility of ministries of transport which support central directorates of sub-sectors (road, railway, waterways, and air). Furthermore, the ministries in charge of planning and finance intervene in programming investment and maintenance budgets and mobilization of public finance resources of which those of transport. Also, the ministries in charge of rural development and regional and local authorities handle some of the rural roads and urban road networks.

3 ROADS SUB-SECTOR

3.1 Road Network

3.1.1 The road network of the ECOWAS countries totals about 450.000 km of which 38.2% are major roads, 53.4% rural roads and 8.4% urban roads. Tarred roads represent about 40% of major roads. The average density of the ECOWAS network is 70 km of road per 1000 km², varying from 16 km per 1000 km² in Niger to 340 km per 1000 km² in Cape Verde. While the road density in Guinea is far below the ECOWAS average (27 km per 1000 km²), that of Senegal is just barely equal to it (74 km per 1000 km²).

3.1.2 The Guinea road network is approximately 14000 km of classified roads. It comprises (i) 2253 km of national highways of which 1989 km are paved; (ii) 4994 km of prefectural roads and (iii) 6793 km of community roads. The state of the paved network considered in good condition is about 60 % representing about 8.5% of the entire network. Concerning earth roads, nearly 70% of them are in poor condition. Given the high hydrographic density of the country and its undulating relief, the national road network comprises many bridges and ferry boats: 1946 concrete bridges, 36 metallic bridges, 31 provisional bridges and 29 ferry boats. Guinea is formulating a new transport infrastructure sector policy and a plan of action network maintenance and modernization program. These actions will supplement the ongoing EU-financed periodic maintenance program.

3.1.3 The classified road network of Senegal comprises 14576 km of roads. It is divided into national roads (3.361 km of which 2.619 km are tarred), regional roads (1 194 km, of which 563 km are tarred), departmental roads (5 575 km of which 769 km are tarred, urban roads (230 km, totally tarred); and listed rural roads (4 216 km of which 84 km are tarred). The overall situation of the network in 2002 was as follows: (i) tarred roads in good condition 21%, average state, 36%; poor condition, 28%; and very poor condition 15%; (ii) that of earth roads in good condition, 1%, average condition, 13%; poor condition 57% and very poor condition, 29%. That situation at the end of 2004, following network repair programs undertaken in 2003 and 2004, resulted in 71% of tarred roads in good and average condition and 29% in poor condition; 24% of each road in good and average condition and 76% in poor condition. The condition of the network should improve further with the implementation of the road maintenance project for which the Bank on 29 June 2005 approved a loan of UA 29 million. Under this project for which procurement is under way, 338 km of earth roads and 116 km of tarred roads will be rehabilitated. Also, 28 km of new tarred roads will be built.

3.2 Motor Vehicle Pool and Traffic

Motor Vehicle Pool

3.2.1 In Guinea, the motor vehicle pool is estimated at 110,000 vehicles, one-third of which are heavy vehicles with an annual growth rate of 5%. The increase in the number of vehicles is due to the liberalization of trade and massive importation of used vehicles representing about 85% of the pool. The consequences of the old vehicles in terms of pollution, road safety and abnormally high vehicle operating costs will be examined within the framework of future transport sector reforms.

3.2.2 In Senegal, the data published in January 2004 by the Department of Land Transport (DTT) shows a motor vehicle pool of 204,937 vehicles (not including tractors, very specialized vehicles and motorcycles), of which 75% are light vehicles and 25% heavy vehicles. Vehicles aged above 10 years represented 77%. To check this trend, the government prohibited the importation of vehicles aged above 5 years. Conversely, the vehicle inspection system is archaic. A bilaterally financed study is underway and its findings will permit the setting up of a modern vehicle inspection system designed to raise the road safety level.

3.2.3 In Guinea and Senegal, the most used tarred road absorb between 1000 and 3000 vehicles per day, and the least used between 100 and 400 vehicles per day, whereas untarred roads carry traffic of below 200 vehicles per day. Heavy vehicles pose a threat to the sustainability of the road networks in the two countries owing in particular to the lack of an efficient system of axle-load checks. To cope with this, an axle-load scales program is under way in Guinea and Senegal.

3.3 Road Transport Industry

3.3.1 ECOWAS countries have for several years embarked on reforms that have led, among others, to the abolition of interurban goods transport monopolies by the countries and total liberalization of urban transport. This open market is flooded by private operators most of whom lack adequate means to engage in public transport. Certain professional transporters have formed national unions or trade unions and regional cooperatives of transporters have formed national markets, there is some anarchy caused by a chronic lack of professionalization. In addition, the 7 obsolescence of vehicles and the illicit charges collected at numerous check points swell transport costs. One major objective of the regional road transport facilitation program of ECOWAS is to reduce, or even eliminate obstacles to traffic so as to foster and efficient transport industry open to fair competition.

3.3.2 In Guinea, as in Senegal, access to the profession is free. It requires enrolment in the register of the road transporters and possession of at least one vehicle in working order according to criteria of the technical inspection services. Competition on most itineraries is therefore very stiff leading to a reasonable level of charges. Apart from a few structured enterprises, the mode of management is predominantly artisanal, which prevents most of the operators from assessing their operating results and drawing up the renewal plan of the fleet that they operate, nearly 80% of which are in an advanced state of obsolescence (over ten years of age). To check this increased ageing of the fleet, Senegal has prohibited the importation of vehicles aged over five years. It is also putting in place a modern vehicle inspection system in a bid to reduce accident risks and pollution.

3.4 Road Construction Industry

3.4.1 In general, in ECOWAS countries, the road construction industry offers a competitive market open to all qualified firms. Following the divestiture of the States from the implementation of road maintenance works, the subsequent privatization of all works and services to be performed as part of road maintenance has resulted, in these States, in a mushrooming of enterprises in the road construction industry sector. However, this industry is affected by the lack of high performance public works enterprises to reduce maintenance requirements and undertake major transport infrastructure works. Local SME promotion policies have not yielded the expected results despite the efforts made within the framework of Transport Sectoral Programs to support SMEs to organize themselves and to train their personnel.

3.4.2 To remove the constraints on the emergence of local SMEs, certain countries are considering replacing competitive bidding for minor annual maintenance works with competitive bidding for medium-scale works on a multi-year maintenance basis, but with an obligation upon the contractor to implement its public works equipment procurement plan as indicated in its bid. Others have introduced pre-selection procedures prior to each round of bidding in order to enable those that have made progress to bid for bigger contracts. The promotion of local consulting firms is progressing satisfactorily especially with faster payments since the establishment of the road funds. It is increasingly gaining ground with the emergence of regular collaboration with foreign firms for road studies and more complex control works.

3.4.3 Building the capacities of local SMEs and consulting firms is one of the priorities of the Guinean Government’s policy in the road subsector. With assistance from the European Union, it organizes training for SMEs in bid preparation (determination of unit prices, bid preparation and presentation, field trips, etc) in order to foster the emergence of specialised SMEs in road construction, capable of maintaining sound financial management. Furthermore, to strengthen the level of equipment of public works SMEs, the Government has obtained with a European Union Grant a batch of public works materials to equip two firms for routine maintenance of tarred roads and a firm for the production of granules. This equipment will be leased to private enterprises following limited competitive bidding. 8

3.4.4. In Senegal, following privatization of road maintenance in the 90s, the construction industry boomed substantially. About ten large national enterprises developed and regularly carry out major works. To that end, foreign firms which participate regularly in international as well as national competitive bidding are also contacted. Similarly, large national enterprises participate in competitive bidding and win major contracts in the sub-region. Moreover, many SMEs have been created and developed of which about 20 average sized ones which carry out road maintenance. Road studies, control and supervision of works are conducted either by foreign consulting firms or by increasingly well-qualified local firms whose numbers are rapidly rising. These local firms are capable of conducting studies of average scope or complexity and of controlling similar works, alone or in a group, in particular with regard to earth roads.

3.5 Road Network Management and Personnel Training

Road Network Management

3.5.1 Road network management in ECOWAS countries is the responsibility of Ministries in charge of roads. In that capacity, these Ministries are responsible for road maintenance and construction. In Guinea, for instance, the management of classified roads is the responsibility of the Ministry of Public Works and in Senegal, it is the Ministry of Infrastructure, Equipment, Land Transport and Internal Maritime Transport (MIETTTMI). These Ministries use their technical services which are the National Roads Investment Directorate (DNIR), the National Road Maintenance Directorate in Guinea and in Senegal, the Public Works Department (DTP) and the Autonomous Road Works Agency (AATR) which is a public body with financial and management autonomy. The setting up of AATR is one the fundamental reforms undertaken within the framework of PST2.

3.5.2 The DNIR in Guinea is responsible for standardization, programming, designs and implementation for road works. It comprises three technical divisions of which the Road Projects Technical Control Division (DCTPR). Its technical staff comprises 29 civil engineers including the Director, a building construction engineer and six technicians. The DNER is responsible for programming and implementing maintenance works as part of the privatisation of such works. It comprises two central technical divisions and regional road maintenance offices.

3.5.3 In Senegal, AATR in general is responsible for the road network management for the State as well as for acting as delegated contracting authority for road works on the said network, and its activities are supervised by the Roads Board (CR), which also advises the Government on road issues. The AATR is headed by a Director General and comprises three Departments including the technical Department (DT); it is represented at the regional level by six branches which are attached to the DT. The Agency has a procedures manual showing its working methods and system of control of its activities. The CR for its parts is made up of representatives of public authorities, users and private sector operators and is assisted by a Permanent Secretariat. The DTP is responsible for defining the road sector policy, planning the national road network development and regulating and coordinating the implementation of the national rural transport strategy.

Training

3.5.4 Training in ECOWAS countries is provided by schools of engineering and public works training and further training centres (CFP). There are many engineering schools and vocational training centres within the Community.

3.5.5 In Guinea, the road works privatisation policy adopted by the government and the ensuing redefinition of the role of the Departments responsible for roads highlighted the need to build the capacities of these directorates in the areas of planning, programming and administration of the sub-sector. Short-term training mainly in the area of road maintenance management received in the past ten years by senior officials of the administration was financed by EDF and the World Bank under various road projects. DNIR lacks computer equipment for management of new works contracts and technical calculations that can enable it to effectively play its new role of project ownership. To that end, the Tombo – Gbessia road project jointly financed by the Band and ADF has envisaged institutional support to build its technical and operational capacities.

3.5.6 In Senegal, training and further training of road maintenance workers is provided by the public works training and further training center (CFTP) created in 1961. The total privatization of road maintenance has led to the reorientation of CFTP activities to meet the needs of the training market, notably for SMEs. To that end, the CFTP under TSP2 benefited from a program to revive its activities financed essentially by the IDA. Hence, the center was able in 2003 and 2004, to organize training sessions and host seminars for road maintenance actors (DTT, SME and AATR) in collaboration with the National Agency for Youth employment. A plan of action along with a priority investment program was defined to enable it to cope with the training needs of SMEs. The AATR has benefited from EDF-financed specific training for its employees during the last three years. It is currently in the process of setting up a road data bank under technical assistance financed by the European Union. The DTP training needs in the area of planning and programming will be met under the road maintenance project approved by the Bank on 29 June 2005.

3.6 Road Maintenance

3.6.1 In the ECOWAS area, annual road maintenance (RM) programs are prepared by the Central Departments or Agencies in charge of roads or directly by using the regional directorates or services, or with the support of consultants. These programs are examined by Ministries in charge of roads or Boards of Directors of road funds for countries with “second generation” road funds. In most of the countries road works and their control are totally entrusted to private operators. For rural roads, the countries are experimenting a participatory strategy of involving beneficiaries in road design and maintenance.

3.6.2 As part of the implementation of its policy of ensuring sustainable road maintenance, the Guinean Government has taken a number of measures concerning (i) reorganization of the services in charge of roads, which includes the building and redeployment of national capacities including privatisation of road maintenance and (ii) securing and sustaining its financing. All routine and periodic road maintenance works will be implemented by contractors following competitive bidding. The DNER is henceforth charged with drawing up and implementing road 10 and road network maintenance programs; and monitoring and controlling corresponding works. To perform its new duties, and given the constraints of personnel turnover, the Government is focusing on strengthening the capacities of services in charge of roads and road networks.

3.6.3 In Guinea national highways and main streets of towns are managed by regional road maintenance bureaux (BRER) of the UTP divided in to 8 geographical regions of the country including Conakry, while secondary and tertiary road networks are the responsibility of local authorities. The maintenance activities for which the MTP is responsible are prepared by technicians divided into 33 public works sectors which go through the networks and note down information which they send to the BRER as route diagrams, and to the DNER where the information is processed. In October of each year, the BRER meet at the DNER and on the basis of available resources, prioritise the works and submit their road maintenance program to the Road Maintenance Fund Board of Directors.

3.6.4 The AATR in Senegal is in its sixth year of functioning and is performing its assigned tasks satisfactorily. It draws up a three-year rolling program (PTG), which is updated each year. The PTG component concerning routine maintenance is financed entirely from the road fund. Regarding periodic maintenance or rehabilitation works, they are financed by the Government from the consolidated investment budget and by donors. In fact, the latter intervened in the financing of periodic maintenance and the rehabilitation of the classified network within the framework of 1989-1999 PAST 1989-1999 and the 2000-2006 TSP2 given the Government’s limited means and in order to permit the upgrading of the said network which was affected prior to these two interventions by a chronic insufficiency of maintenance. The AATR prepares bidding documents and related contracts, ensures approval of contracts and supervises works. The control and supervision of routine, periodic maintenance and rehabilitation works are carried out by national and international consulting firms.

3.6.5 The creation in Senegal of a second- generation road fund known as the Autonomous Road Fund (FERA) is an appropriate solution to the present situation marked by insufficiency of road maintenance resources and irregularity in provision. This is due to the fact that the resources earmarked for maintenance come exclusively from the extremely tight government budget. Furthermore, greater involvement of users and private actors of the transport system will be a more effective means of ownership for the control and use of the resources of this Fund. These provisions and the obligation of result imposed on the ATR for its annual performance enabled the improvement in 2004 of: (i) the annual budget implementation rate; (ii) availability of resources at the appropriate time and (iii) the quality of road maintenance operations programming. However, for year 2005, the first funds were only made available to the AATR in June (CFAF 4 billion). This is not likely to favour the rate of performance of contracts signed since the month of January 2005, thus justifying the need for a second generation road fund instead of the current budgetary allocation. The study on a second-generation road fund was recently completed. Its conclusions and recommendations which envisage the creation of FERA before end 2006, were validated by the Government during a workshop held in Dakar in March 2006. The effective putting in place of FERA before end 2006 is one condition for the WAEMU/Senegal/Mali multinational road project.

3.7 Financing of Investments and Road Maintenance

3.7.1 The programming of road maintenance in the ECOWAS countries is based on a three year rolling program. Furthermore, investments relating to the facilitation of road transport and transit on the highways and corridors are partly financed from the Union’s own resources and recovery would be borne by users. Private enterprises will be consulted for toll gate concessions and structures related to road transport and transit facilitation (juxtaposed check points at borders, radio communication, tollgates/weigh stations, etc.). These measures presuppose a prior improvement of the road checking system which could thus facilitate cost recovery, with no additional financial pressure on users.

3.7.2 For the financing of heavy investments (new and rehabilitation works) and part of periodic maintenance, the countries call on their development partners. Hence, the majority of bilateral and multilateral financing institutions represented in Mali and Senegal intervene actively in the road sub-sector by drawing up programs and financing projects and programs. Such donors are, among others,: ADF, IDA, EU, Arab Fund, IDB, OPEC Fund, Japanese Cooperation, KFW, GTZ, ADF, and ABEDA. The previous commitments of these partners devoted mainly to road reconstruction and rehabilitation had reached on average approximately (i) GNF 800 billion in Guinea in the period 1998 – 2005 and (ii) CFAC 211 billion in Senegal in the period 2000- 2006 covering the TSP. Concerning WAEMU’s, PACITR program, which was updated in April 2004. It revealed that the road works concern about 11500km for a total cost estimated at CFAC 1400 billion and that CFAF 393 billion is already secured for works on 3800km. The main donors involved in this program are ADF, WADB, IDA, EU and IDB.

Financing of Road Maintenance

3.7.3 To find sustainable resources for the financing of road maintenance expenditure (routine and periodic), it was decided that 2nd generation road funds would be generalized and a system of toll gates and weighing at harmonized rates would be instituted on community roads. For some years, road maintenance has been entirely privatized in the ECOWAS area. The financial resources put in place by countries of the Union for financing maintenance are not sufficient and most are not secured. The setting up of so-called “second generation” road funds seems to be a solution to this problem.

3.7.4 In Guinea, maintenance of the road network is financed by the second generation road maintenance fund “FER” put in place and operational since the year 2003. FER resources derive from the road maintenance tax (RER), government subsidies and occasionally from EU contributions. The annual resources actually mobilized for maintenance of the national network and the major roads varied between GNF I4 and about 20 billion from 2003 to 2005, while the real needs expressed fell between GNF 25 and 33 billion. On 2005, the Guinea Government took measures to cope, without external aid, with the routine maintenance needs of the priority network defined (50% of classified national network), estimated at approximately GNF 50 billion / year as from 2008. The idea is to have the National Assembly adopt an increase in the fuel tax which the State allocates for road maintenance without raising pump prices. These provisions contained in the Memorandum of Understanding concerning the Tombo – Gbessia road project approved by the Bank in July 2005 should be satisfied by 31 December 2007. The status of implementation of these measures is deemed satisfactory. The bill is in the process of adoption by the Government and will be tabled before the Assembly during the first half of 2007. 12

3.7.5 In Senegal, road maintenance is presently financed from a budgetary appropriation. (CFAF 15 billion in 2005 and 2006). The Senegalese Authorities have undertaken to raise this contribution to 18 billion in 2007. To secure road maintenance resources, the 2nd generation road fund known as the Autonomous Road Maintenance Fund (FERA) is being set up. FERA will initially be financed in 2007 by (i) a levy of CFAF 3 billion paid directly into the FERA account; and (ii) a budgetary appropriation of CFAF 15 billion. A mechanism of gradual substitution of the budgetary appropriation by the levy will be put in place. According to the schedule, all the regulatory texts relating to its creation will be promulgated during 2006. These texts, prepared by the Senegalese administration have already been adopted by the Government. The effective putting in place and operation of FERA should take place during the year 2007. These provisions satisfy the conditions for on going projects (Road Maintenance Project and Road Upgrading and Transport Facilitation Program on the Southbound Bamako – Dakar Corridor).

4. THE PROGRAM

4.1 Program Design and Rationale

4.1.1. The Labe-Tambacounda road forms part of the ECOWAS regional transport programme (under the name CLV/TR-38/99). The Tambacounda-Medina Gounass, known as the Community road Cu 11 also forms part of the Community Infrastructure and Road Action Program (PACITR). On account of its integrative role, the contribution of this road is in conformity with the short-term plan of action of the New Partnership for Africa′s Development (NEPAD) one whose objectives is to have inter-State roads that are free of all obstacles to the movement of people and goods. The construction of the Labe-Medina Goumas missing link will provide a permanent tarred road link between Conakry and Dakar.

4.1.2 To choose the road alignment several alternatives were considered by the consulting firm that conducted the study. (i) the 850 kilometre Labe-Seriba-Medina-Goumass-Tambacounda route 370 kilometres of which is earth road, (ii) the 843 kilometre Labe-Mali - Kedougou- Tambacounda (Mali is a town in Guinea) route, 217km of which is earth road, and (iii) 505km Boke-Seriba-Medina-Goumass- Tambacounda route, 415 kilometres of which is earth road. The Boke route is situated in a less hilly area and is shorter, but requires road works over a longer distance (about 450 km). Moreover, this route unlike the Labe-Seriba-Tambacounda road does not serve areas in Middle Guinea where the most important towns after Conakry and the main areas generating trade flows with Senegal are located. The route via Mali is the shortest but is situated in an area of steep cliffs that are virtually inaccessible, with exorbitant costs of works. These preliminary analysis led to the choice of the Labe-Seriba-Medina+Gounass-Tambacounda route which is the subject of this program.

4.1.3 Several options were considered for the upgrading works (double-layer surfacing or in bituminous concrete, base course in soil-cement, stone chips, etc) The solution retained opts for a 7m-wide carriageway with two 1.5m shoulders for the program roads). The dimensions of these carriageways are in conformity with ECOWAS standards. The base course will be constructed with unprocessed sand-gravel mixture for new roads as well as for rehabilitation. The surface course of all program roads will be in bituminous concrete. Moreover, the program 13 envisages, the upgrading of rural feeder roads, water points and/or boreholes and roadside market areas and motor parks. The beneficiary populations of the water points will contribute to their construction either in kind or in cash and will finance recurrent maintenance costs.

4.1.4 In March-April 2005, the Bank conducted a program preparation mission. During this mission the following points were noted. (i) obstacles to traffic flow on the tarred stretches of the corridor with their repercussions on congestion at Conakry and Dakar ports; (ii) the non- enforcement of the road transport and transit agreements between States, such as the TRIE and TIE signed by all States of ECOWAS; and (iii) non-compliance with axle-load requirements. These different observations led to the choice of the corridor (Conakry-Dakar by the South) approach which fits into the transport facilitation aspect as adopted by ECOWAS.

4.1.5 The program was prepared and appraised and, even the studies were conducted using a participatory approach involving mainly the riparian population, transport sector operators and government services (customs, police, gendarmerie) involved in the transport chain. Through these meetings it was possible to take into account certain needs of the populations as regards basic socio-economic infrastructure in a bid to contribute more effectively to poverty reduction, by improving the living conditions in villages served by the road. These socio-economic facilities (schools, water points etc. ) are part of the different national master plans of the two countries.

4.1.6 The program was discussed extensively with the main stakeholders of the road subsector, notably during round-table conferences held in Saudi Arabia and Guinea. This approach enabled the adoption of the most cost-efficient options with minor environmental impacts, and consideration of the concerns of beneficiary populations.

4.1.7 The program thus designed has four components; (i) upgrading of 372.8km of earth road into tarred roads between Guinea and Senegal (Labe-Medina-Gounass) and rehabilitation of 89km of tarred road in Senegal (Medina-Gounass-Tambacounda), including environmental impact mitigating measures and sensitisation of populations to HIV/AIDS, road safety and environmental protection; (ii) construction of rural feeder roads, boreholes, partial repair of social and commercial infrastructures, rest areas and their control ; (iii) transport facilitation actions such as the construction of the juxtaposed border checkpoints, installation of axle-load scales, setting up radio communication systems and sensitisation seminars for stakeholders; and (iv) program management and monitoring consisting in conducting surveys, monitoring and evaluation of the program, training and conduct of the financial and accounting audit of the program. The facilitation component will cover the section of the corridor running from Conakry to Tambacounda and will be covered by the on-going facilitation program on the Southbound Bamako-Dakar road, which was approved in December 2005 by the Bank, and via the North financed by the EU. It will strengthen the on-going construction of the Tombo-Gbessia to Conakry road in Guinea, which is financed by the Bank.

4.1.8. The program design also benefited from experience from multinational projects already implemented or underway, namely the Kankan-Kouremalé-Bamako road between Guinea and Mali and the on-going PR-1 between Burkina, Ghana and Mali as well as the program concerning the Bamako-Dakar road via the south, which was approved by the Bank in December 2005. The main lessons learnt from these projects are; (i) the need to take into account in multi- 14 national projects, transport facilitation measures; (ii) the need to put in place an institutional framework for coordination and monitoring of the implementation of multinational programs. Lastly, the program concept is in line with the Bank’s vision and is in keeping with the NEPAD short-term action plan. The program will contribute to poverty reduction and training/sensitization of corridor transport stakeholders and operators on the Conakry-Dakar corridor.

4.2. Program Area and Beneficiaries

Definition and Characteristics of the Area

4.2.1 The program area (ZIP) has been determined taken into account the configuration of the road network using the corridor approach. The program road which is 471km long (of which 21km of feeder roads) as well as rural connecting roads, crosses 4 (four) major administrative regions, two in Guinea (Labe and Boke) and two in Senegal (Kolda and Tambacounda). These four regions cover the prefectures of Labe, Lelouma, Koundara, Gaoual and Mali in Guinea, and Departments of Velingara and Tambacounda in Senegal. The ZIP is thus made up of these four regions whose average temperature varies between 24ºC and 40ºC. Its relief is variable, mountainous and hilly in Guinea, and flat in Senegal. The ZIP has a variety of soils, ranging from a sandy texture, conducive to groundnuts, millet and sorghum, farming, to soils that are rich in organic matter and suitable for tropical crops.

Population and Poverty Profile in the Area

4.2.2 The ZIP has a population estimated at 2.08 million inhabitants of which 1.56 million are in Guinea and 520 thousand in Senegal, that is 10.6 percent of the population of the two countries. Its average overall density is around 35 inhab./km2. However, this density is higher on the Guinean side, notably in Labe prefecture (112 inhab/km2), while on the Senegalese side which is sparsely populated compared to the rest of the country, it is low at about 26 inhabs. per square kilometre. The population of the ZIP which is mostly rural (over 80 percent) and very young (53.4 percent) is growing by about 2.8 percent, with a high fertility rate (6 children on average per woman) and early pregnancies (32 percent of adolescent girls aged 15-18 are mothers). The sex ratio is 44.75 percent (that is, 81 men for 100 women), showing significant rural – urban migration of men. This massive departure of the male population increases the burden of women, 36 percent of whom are household heads.

4.2.3 In the ZIP, the phenomenon of poverty affects 49 percent of households in Guinea living below the poverty line, representing the national average. This phenomenon is more pronounced in Senegal, with 66.5 percent and 56.2 percent of households living below the poverty line respectively in Kolda and Tambacounda, compared to a national average of 48.4 percent. Concerning social infrastructure, the ZIP has a low drinking water access rate, leading to the use by the populations of unsafe water; the national drinking water access rate is 40.3 percent in Tambacounda and 27.3 percent in Kolda (as against a national average of 72.7 percent). Access to health care is also low, which favours home-births. It is worth noting that the average radius of influence of a health post is 15.5km in Tambacounda as against 9.3km at the national level. The regions of Tambacounda and Kolda are the most affected by infant mortality, with 15 rates of 85 percent and 86.7 percent respectively (compared to a national average of 70.1 percent). The bank will provide support through its poverty reduction project in the regions of Tambacounda and Kolda, in order to raise the educational and professional levels, increase income-generating capacities and foster access to basic services.

4.2.4 In a zone marked by significant migratory movement, the issue of HIV/AIDS assumes special importance. Indeed, seroprevalence is 1.8 percent and 1.2 percent respectively in Labe and Boke. While the prevalence rate at Tambacounda (0.4 percent) is far below the national average (0.7 percent), conversely it is quite disturbing at Kolda (2 percent), with a marked trend towards feminisation of the pandemic. Excision is also widely practised in Guinea (almost all the women in the ZIP have experienced it). However, a law protecting the physical integrity of women has been passed in Guinea. Regarding education, the percentage of children of school- going age is 54.9 percent for Kolda, against only 37 percent for Tambacounda. The educational system has a high drop-out rate, notably among girls with a very low primary school completion rate (47 percent). As concerns transport, village surveys conducted in 2000, showed that about 1.68 million persons, that is about 63 percent of the rural population, have no access to a road (paved or earth).

4.2.5 To attain the millennium development goals (MDG) in rural areas, the programs of the two governments regarding drinking water access (including the water points under this program), envisage that about 80 percent of households should have access to drinking water in 2005 as against 60 percent in 2004. Concerning transport, the objective of the Governments is to link all the chief towns of the classified network so as to ensure their accessibility in all seasons.

Economic Activities in the Area

4.2.6 The economy of the ZIP is based essentially on agriculture and livestock. Cash crops are still very weak in Guinea, but more developed on the Senegalese side, with groundnuts and cotton. The ZIP has a high farming population (about 80 percent) dominated by women. The latter are very active in processing agricultural produce and in export crops (in particular, market gardening produce), horticulture and handicrafts. The production systems are characterized by manual labour with low output. Several factors contribute to the low output, including: (i) the poor soils of the Labe and Tambacounda regions; (ii) the low level of intensive farming in the areas developed. In addition, other types of constraints such as illiteracy, lack of professionalism, difficult access to agricultural inputs, and major producing areas being landlocked.

4.2.7 Food production in the ZIP concerns primarily rice, fonio, sorghum, corn, colocassia, millet, potatoes and groundnuts. There is a shortage of cereal production on the Guinean side where food needs are estimated at 64 000 tonnes for rice and 154 000 tonnes for other cereals, barely covering 68% of the food needs, which explains the high consumption of imported rice. .However, this assessment varies from one area to another; that of Labé being regarded as a zone of intermediate food security and that of Lélouma and Mali, a zone of high food insecurity. On the Senegalese side, the Kolda area is characterized in particular by: (i) its substantial groundnut and cotton production respectively contributing up to 15% and 50% of national production; (ii) its rice growing which covers approximately 50% of the total cultivated surface of the country.

4.2.8 Stockbreeding (bovine and ovine) is the second economic activity of the ZIP after agriculture. However, it is insufficient on the Guinean side; in 2003, the contribution of the meat covered only 29.5% of the needs and the contribution of the other products (milk, eggs, chicken) was about 15%. The weak livestock production results from the following factors: (i) the existence of feed problems and watering in dry season, themselves related on the drying up of the water points and the inaccessibility of the existing pockets On the Senegalese side, there is a continuous increase in livestock; approximately 44% of the cattle in the country are concentrated in the areas of Kolda and Tambacounda. The boom in extensive stockbreeding in this part of Senegal is due at the same time to the existence of pastures in areas where rainfall is relatively more abundant; and in addition, marked by a strong presence of the Peulh, who are pastoralists traditionally.

4.2.9 In the ZIP, trade is another major activity in which more half of the population of which women and young people in particular are engaged. The weekly markets, the most important of which are those of Diaobé and Medina Gounass in Senegal; and of Saréboido, Koundara, and Tianguelbory in Guinea, are closely connected to the cities located on the Conakry-Dakar corridor. The ZIP benefits from major development programs. In Guinea, this concerns in particular a capacity building program for village communities. In Senegal, they are Bank-financed actions in the area of Kolda and Tambacounda, relating to the elimination of illiteracy, the training of the rural advisers and producers, construction of pastoral infrastructure (7 innoculation centres and 25 water points). The investments envisaged under this present program will supplement previous actions in the ZIP.

4.2.10 The ZIP also has other natural and economic assets offering enormous potentialities to the sectors of tourism, agro- industry, hydro-electricity, the quarries for extracting construction minerals and local development dynamics. The mining potential of the ZIP concerns, in Guinea, the bauxite deposits of Tougué, limestone (Mali), slate (Labé and Lébékéré / Mali), and in Senegal, the rich minerals in Tambacounda whose exploitation and development are handicapped by the lack of a transport infrastructure network. However, the ZIP is currently benefiting from major development programs. In Guinea, this concerns in particular, (i) the village communities support program (PACV), which aims in particular to build the capacities of the rural development communities to run themselves and properly manage local resources; and, (ii) the Bank-financed social development Project in Upper and Middle Guinea. In Senegal, the experiment of the United Nations Agencies aims to boost dialogue and coordination of the actions for the development of the Tambacounda area. The objective is to ensure coherence and synergy of the actions of the regional Council, regional development Agency of (ARD) and development partners to enable the area to achieve the Millenium Development Goals (MDGs) by 2015.

Existing Situation

4.2.11 The Conakry-Dakar corridor is approximately 1450 km long : (i) 834 km in Guinea, connecting Conakry to the Senegal border of which 64% are in good condition; and (ii) 610 km in Senegal, linking the border from Guinea to Dakar of which 59.1% is in good condition since the Bank-financed rehabilitation of the Diam Nadio –Kaolack section. On this corridor, 370 km are not paved. To improve the corridor's service level and address the problems of congestion, the rehabilitation and construction of traffic interchanges and cross-town arteries in Dakar and Conakry are under way. The table below gives a detailed situation of the corridor. 17

State of the Road Network on the Conakry-Dakar Corridor

Length Country Sections in Km Situation and program status Tarred road in good condition, but congested over the last 25 km between Rufisque and Dakar. Construction work on the interchanges, alternate routes Dakar-Diam Niadio Highway and extension of the North cross-town artery are advanced. Rehabilitation and drainage works are under way Senegal Dakar-Diam Niadio 36 on the urban section of Dakar. Tarred road in very good condition. Rehabilitation works Senegal Diam Niadio- Kaolack 152 were completed between November 2004 and March 2005. Tarred road in average condition. Periodic maintenance is Senegal Kaolack- Mbirkelane 37 envisaged following studies conducted under EDF XVIII. Tarred road in poor state. The bidding documents are Mbirkelane- available and competitive bidding was launched in July Senegal Tambacounda 236 2006 financed by the European Union. Tambacounda – Médina Gounass and Daka Tarred road in poor condition, to be rehabilitated under this Senegal connecting Rd 89 program, financed by ADF, WADB and Senegal Médina Gounass- Earth road to be upgraded and tarred under this program, Senegal Guinea border 69 financed by KFAED, SDF and Senegal. Senegal border – Bouméhoun and Earth road whose upgrading and tarring are envisaged Guinea Koundara connecting Rd 128 under this program (FAD, Guinea) Earth road in very poor condition to be tarred, financed Guinea Bouméhoun- Komba 102 under this program by SDF, KFAED,, OPEC and Guinea. Earth road in very poor condition to be tarred, financed Guinea Komba-Labé 86 under this program by ABEDA, IDB, Others and Guinea Tarred road in average to poor condition and ongoing works on expressway with interchanges under a different project over the last 10km (Tombo-Gbessia) to reduce congestion at Guinea Labé- Conakry 536 entry to Conakry. Total 1449..5

4.2.12 Regarding road transport and transit facilitation, there are persistent obstacles to traffic flow, with numerous council tax collection points and non-enforcement of Inter-State transport and transit conventions, such as TRIE and TIE signed by all ECOWAS countries. Furthermore, there is no axle load control on the corridor. However, measures are under way or envisaged under this program to cope with these deficiencies, notably the putting in place of fixed and mobile axle-load scales on the corridor and limitation of control at departure, at the border of the two States and at arrival, and harmonization of the instruments relating to norms and axle load control on the Conakry-Dakar corridor. The implementation of this last measure is a loan condition under this program.

4.3. Strategic Context

4.3.1. This multinational program is consistent with the objectives of NEPAD as well as the pertinent development strategies of the two countries. The construction of the 474km road including the Daka and Koundara connecting roads on the Conakry-Dakar corridor has been supported by several donors co-financing the program but also by the World Bank, European 18

Union, ADF, Japan and KFW that were met during preparation and appraisal missions of the said program. This program falls within the framework of strengthening regional cooperation within ECOWAS.

4.3.2 ECOWAS represents the most extensive subregional grouping and is a prelude to the African common market. It enjoys successful initiatives concerning the movement of people. However, ECOWAS has only partially implemented the trade liberalisation scheme; 8 (eight) countries out of (15) fifteen, representing 75 percent of ECOWAS trade are implementing this trade liberalization. An institutional mechanism, namely National Coordination Committees (NCC), is being put in place in each State to oversee macro-economic policies. At the level of the West African Monetary area, an institutional mechanism comprising National Zonal Committees and convergence criteria similar to that of WAEMU has been put in place by ECOWAS in conjunction with the West African Monetary Institute; a macro-economic corporation program has been established between member states to ensure convergence of economies. WAEMU and BCEAO involved in these initiative are supporting ECOWAS and the experience of WAEMU is thus being built upon. Regarding physical integration, ECOWAS has developed different sectoral programs in the area of infrastructure (transport, telecommunications, energy) and initiatives for private sector development. ECOWAS plays a key role in conflict prevention and management and peace-keeping operations in the sub-region.

4.3.3 For Guinea, the construction of this road is part of the implementation of the PRSP as well as its national transport program (NTP). The program falls within the framework of the active policy of opening up Middle Guinea, in order to fight against the precariousness of rural life and significantly increase its growth potential. The strategy which the Guinea Government has been implementing since 1999 in the transport sector, with the support of donors of the sectors, is aimed at the development, rehabilitation and maintenance of the transport network to meet the needs of the producing areas, but also through bold institutional reforms for more efficient management of the sector. To that end, the Government has initiated several infrastructure programmes some of which have already been implemented, and others are under way or being studied, such as the Tamba-Gbessia project and the second-generation road maintenance fund. The expected program benefits are in line with the Banks interim results-based country strategy paper (RBCSP 2005-2009) for Guinea. However, the challenge currently facing the country is the persistent macro-economic imbalances, which made the country unable to qualify for the heavily indebted poor countries debt reduction initiatives.

4.3.4 For Senegal, the Government in 2002 prepared a Poverty Reduction Strategy Paper (PRSP) for the period 2003-2005. This reference framework concerning economic policy for growth and poverty reduction which is currently being revised, to cover the period 2006-2008, aims in 15 years time, to reduce poverty by half in accordance with the millennium development goals (MDG). The main thrusts of the PRSP are: (i) generating wealth; (ii) capacity building and promotion of basic social services; (iii) improving the living standard of vulnerable groups; and (iv) a participatory approach in the implementation and monitoring and evaluation based on the decentralized steering committee and implementation.

4.3.5 This program is designed in the overall context of implementation of the PRSP and more particularly concerns the main objective pursued by the 2nd transport sector program (TSP2) in the roads sub-sector, namely, improving the service level of the road network in order to 19 support production activities and services for the revival of economic growth, poverty reduction and environmental protection. TSP2 was prepared and implemented by the Government following a sectoral dialogue with the donors concerned. The strategy adopted concerns mainly (i) institutional strengthening and modernization of structures to improve the efficiency of the sector, (ii) infrastructure construction rehabilitation and maintenance; and (iii) strengthening private involvement in the management and investments of the sector. The program envisages institutional support to partner structures as well as transport and transit facilitation actions. Furthermore, a second -generation road fund is being set up.

4.4 Program Objectives

The program’s sector goal is to contribute to strengthen sub-regional economic integration and cooperation among ECOWAS Member States. Its specific objective is to: (i) promote trade between Guinea and Senegal and remove traffic constraints and thus cut overall transport costs, (ii) improve the sustainability of investments by controlling axle loads; and (iii) improve living conditions of project area dwellers.

4.5. Program Description

4.5.1. To attain the above-mentioned objectives, the following outputs are expected from the program:

(i) 385 km of earth road upgraded into a tarred road between Labé and Médina Gounass, of which 316 km in Guinean territory, including the Koundara access road (12.5 km), and 69 km in Senegalese territory;

(ii) 89 km of tarred road rehabilitated between Médina Gounass and Tambacounda, including the Daka access road (9 km) in Senegal;

(iii) 190 km of rural roads connected to the major highway upgraded in the two countries; 4 boreholes drilled in Guinea and 3 boreholes drilled in Senegal; 17 schools rehabilitated and/or fenced of which 7 in Senegal; resting areas for drivers provided throughout the corridor; 5 commercial facilities of which 1 motor park and 4 markets reconstructed; 2 forest guard posts built and equipped;

and Tambacounda; 1 million persons sensitized to HIV/AIDS, etc; 4 audit reports produced, two project officers appointed : 1 JTC of 9 members put in place to monitor the program.

4.5.2 The program components are as follows:

A. UPGRADING AND REHABILITATION OF ROADS

A1 Upgrading of 385 km of earth road into a tarred road between Labé and Médina Gounass, of which 316 km in Guinean territory, including the Koundara access road (12 km), and 69 km in Senegalese territory;

A.2 Rehabilitation of 89 km of tarred road in Senegal between Médina Gounass and Tambacounda, including the Daka access road (9 km);

A.3 Environmental impact mitigation works;

A.4 Sensitization to road safety, environmental protection, malaria, and STIs, of which HIV/AIDS etc.

A.5 Control and supervision of works

B. RELATED WORKS

B.1 Construction of rural feeder roads

B.2 Rehabilitation of social and commercial infrastructure

B.3 Drilling of boreholes for drinking water points

B.4 Control and supervision of works

C. TRANSPORT AND TRANSIT FACILITATION ACTIONS AND MEASURES

C.1 Studies for the setting up of radio communication and the construction of a juxtaposed checkpoint at the border

C.2 Construction of an equipped juxtaposed checkpoint at the Guinea/ Senegal border

C.3 Supply and installation of axle-load scales on the corridor

C.4 Installation of radio communication system

C.5 Control and supervision of works

C.6 Seminars / study trips/sensitization of stakeholders

D. INSTITUTIONAL SUPPORT AND PROGRAM MANAGEMENT

D1 Functioning of program coordination at the level of WAEMU, the Joint Technical Committee and the Ministries of Roads, Transport and the Environment of the two countries charged with monitoring the program

D2 Monitoring and Evaluation (8 reports)

D3 Training

D4 Auditing of program accounts

4.5.3 Works on the 474 km Labé – Seriba - Medina Gounass –Tambacounda road are subdivided in 5 (five) lots divided up as follows: A) in Guinea Lot 1: Labé – Komba Section(86 km); Lot 2: Komba-Bouméhoun Section (102 km); Lot 3: Bouméhoun – Guinea/Senegal Border Section (128 km) including the 12 km Koundara connecting road ; Lot 4: Guinea/Senegal Border – Medina Gounass Section (69 km) and; Lot 5 : Medina Gounass – Tambacounda Section (89 km) including the 9 km Daka connecting road.

Construction and Rehabilitation of the roads of the Corridor

4.5.4 The construction and rehabilitation of the various road axes of the corridor in Guinea and Senegal are divided into 5 lots of which 4 relate to the upgrading of earth roads to new tarred roads in Guinea and in Senegal and 1 (one) lot concerns th rehabilitation of initially tarred roads. Regarding new works, in Guinea, the sub-base courses (20 cm) and base courses (15 cm) will be respectively of laterite and untreated sand-gravel aggregate (chippings); while in Senegal, the sub-base course will be of laterite (25 cm) under which a sand subgrade (anti-contaminant) will be applied to a 10cm thickness, with a base course of untreated sand-gravel aggregate15 cm thick . The surface courses will be in asphaltic concrete or 5 cm-thick hot-mix. The berms will have single-layered bituminous coating. The standards to be used are those applicable in the ECOWAS zone: roadways 7 m wide and berms of at least 1.5 m , with appropriate road signs.

4.5.5 For rehabilitation works concerning Lot 5 in Senegal, recycling will be carried out on the existing roadway on 20 cm with use of supplementary materials as sub-base. Another base course will be put in place using 15 cm- thick untreated sand-gravel aggregate ( 0/31.5 chippings), with 5 cm. bituminous surfacing.

Population Sensitization

4.5.6. Sensitization campaigns are designed to inform the poor and vulnerable populations of the opportunities and risks that would be created by road works so that they may adopt responsible behaviours which would contribute to improve their living standards. At least 22

1,000,000 people will benefit directly from sensitization, notably on local radio stations, televised messages and posters. The sensitization of roadside dwellers will bear on environmental protection, HIV/AIDS, malaria prevention and road safety. In certain areas, it will also concern the negative practices of excision and early marriages of young girls and the need for their school enrolment. Consultants or specialized NGOs will be recruited in each of the two countries for such services.

Related Works

4.5.7 Related works entail the partial rehabilitation/provision of the socio-economic facilities requested by the riparian population during discussions held with them as part of the participatory approach. Hence, schools situated less than 100 metres from the road will be fenced and their facilities improved, where necessary, with supply of desks and construction of latrines. Boreholes will be drilled for water supply and market gardening in certain localities, and link-up roads will be opened, etc. Furthermore, the boreholes which will be drilled by contractors to supply water to the project sites will be equipped upon completion of the works for water supply to the populations of the area concerned. Similarly, the base camps will be used upon completion of works for social infrastructure needs. The areas where these facilities (boreholes and work camps) will be sited must take into account their future use.

4.5.8 Concerning earth roads, the works will entail the preparation of a 7-10 m roadbed, a laterite surface course of 10 to 15cm thick and 4 to 5m wide following a cross section, the provision of culverts and the placing of vertical road signs at the appropriate places. Critical spots will be treated as a priority by constructing minor drainage works. Minor changes may be made lengthwise to increase visibility and safety.

4.5.9 In general, parking areas would be provided along road stretches of the corridor whose strengthening works are financed by ADF to limit congestion of the pavement and enable truckers to observer the resting time under good safety conditions. Concerning water points which will be established as well as access roads to certain socio-economic facilities which will be provided, the beneficiary populations will be involved in their construction, in accordance with the policy in force in that domain in the two countries. This involvement will concern their contributions in cash or kind at the time of constructing these facilities as well as the financing of recurrent maintenance and renewal costs relating thereto. The consultant who would be responsible for sensitizing the riparian population will supervise the populations concerned in the management of the said facilities.

Actions and Measures of Sensitization and Road Transport and Transit Facilitation

4.5.10 To facilitate inter-State road transport and transit on the corridor, the program will focus on a segment of this transport, namely transport by container, by tanker and under certain conditions, transport by sealed trucks. To limit control for these transport categories at the departure points, border and arrival points, it is envisaged under the program: (i) to install a radio communication system throughout Conakry-Dakar corridor to facilitate communication between transport operators and of traffic and road managers; (ii) construct an equipped juxtaposed check point at the border between the two countries on a site already specified by the two countries; (iii) install axle-load scales on the corridor (iv) facilitate the use of the single notebook for inter-State 23 road transit (TRIE) for a single trip on the corridor; (v) sensitize transport system actors to the objectives and expectations of the program, and (vi) organize seminars, study trips, train transport stakeholders (transporters, customs officers, security forces, truckers, etc.) At lest 1000 persons will be sensitized and/or trained in corridor practices.

Institutional Support and Program Management

4.5.11 This component will reinforce the institutional mechanisms put in place. The institutional support envisaged in the program consists of capacity building through: (A) the supply and installation at the Land Transport Department (DTT) of Guinea, of transport management computer equipment and training of senior staff to use it ; and (B) sensitization meetings as well as study trips of actors and users of frontier installations. The latter activities will be organized by the WAEMU Commission and will consist of: (i) the organization, at its headquarters, of training sessions on the concept of road transport and transit facilitation for ten officers ( five per country) of the structures in charge of the project (transport and roads) in the two countries,; (ii) the organization, at the WAEMU headquarters, of meetings of discussions and sensitization of four persons ( two per country), from trade unions of hauliers and the Chamber of Commerce, on the obstacles to inter-State traffic; (iii) the organization, in Guinea and in Senegal of seminars of sensitization to road transport and transit facilitation actions (use of the juxtaposed border checkpoint, and radio communication); these seminars will concern approximately 200 persons (about 100 per country) made up representatives of hauliers' groups, customs and frontier police services , the Chamber of Commerce, economic operators, women's organizations as well as representatives of the hauliers' association in West Africa

4.5.12 Program management also includes: (i) monitoring by executing agencies of the program activities implemented on their territories, coordination of the entire program by the Joint Technical Committee (JTC) chaired by WAEMU; the related costs are envisaged in the program cost ; (ii) monitoring and evaluation of program impacts to be conducted in the form of a survey of the practices and behaviou of transport system actors and attainment of the of the program objectives in the corridor; (iii) auditing of the program directly managed by WAEMU.

Control Services (for road, related and facilitation works)

4.5.13 Control services and supervision of works will be carried out by consultants recruited to that end. They will be subdivided into several lots to take into account the type of works and the allotment of works. Furthermore, the consultants will use the services of a specialized and approved Laboratory for geo-technical control of services. They will provide logistics to the DNIR and AATR for work site monitoring. The latter will essentially entail the supply of four vehicles for the two project officers who will be appointed in these two structures, and the two regional divisions at Labe and Tambacounda. The consultants will be responsible for the quality, proper conduct and compliance with deadlines for completion of the works by the contractor. Their responsibility shall also entail the survey statements of works, drawing up certificates of payment and drafting of status reports and works completion reports.

4.5.14 Regarding monitoring, each works control and supervision team will comprise an environment expert who will serve on a part-time basis throughout the duration of the program. In collaboration with environmentalists of the environment unit attached to the Directorate in 24 charge of roads of each country, it will monitor the implementation of the environment and social management plan (ESMP), project site management, implementation of specific environmental and social works and the search for solutions to specific environmental problems.

4.6 Environmental Impacts

4.6.1 The program is classified in environmental category 1, given its nature and the direct, indirect or induced impacts that it may generate. It thus was the subject of an environmental and social impact assessment (ESIA), undertaken using a participatory approach with public consultation in the two countries. Moreover, an environmental and social management plan (ESMP) and a resettlement plan (RP) of the populations to be displaced, were elaborated. The mission noted that the ESIA was conducted in accordance with the provisions of the environment code of the two countries. The competent authorities strictly followed the procedures necessary for the validation of the environmental documents (ESIA,ESMP and RP). Thus, after dialogue with the various ministries concerned, the Departments of the Environment of Guinea and Senegal validated these environmental and social documents (letter of certification of 7 August 2006 from Senegal and that of 28 August 2006 from Guinea). It should be noted that the summary of the ESIA was published on the Website of the Bank and is available at the Public Information center (PIC) of the Bank. This summary was also transmitted, for information to the Board in August 2006.

4.6.2 The road skirts the Niokolo Koba national park (Senegal) - Badiar (Guinea) and several other classified forests. The effects induced by the use of the road and the frequency of the vehicles could have a destructive effect on the biodiversity found in the park and the classified forests which contribute to the well-being and equilibrium of the population

Negative Impacts and Mitigative Measures

4.6.3 Most of the negative impacts will appear for the period of implementation of the works. These impacts are: (i) clouds of dust, noise, the sound vibrations; (ii) problems of safety during work and the installation of the equipment and building materials; (iii) spillage on the ground of substances hazardous to the environment (drainage oils, waste water and various wastes); (iv) felling of trees (v) soil compaction due to the passage of heavy equipment within a radius approximately 500 m; (VI) problems of temporary access for roadside dwellings and of expropriation.

4.6.4 To mitigate the negative impacts, maintenance and the rehabilitation work of the roads and the structures will be implemented in accordance with the environmental and social standards established. To this end, a series of environmental and social protection measures was envisaged in the Environmental and Social Management Plan (ESMP). Within the framework of effective implementation of the recommended measures, appropriate measures will be taken, such as their inclusion in the specifications of the contractors to be recruited for the implementation of the road works and obligation for the control missions to see to their implementation in accordance with the specifications. During the launching of works, the quarry zones will be clearly marked out and they must be exploited in accordance with the provisions of the Mining Code and the Environment Code. The owners of crops destroyed in the borrow zones will be compensated by the contractors. After exploitation, these quarries will have to be rehabilitated. The revegetation 25 will be carried out, subject to the agreement by the rightful claimants, by the planting the appropriate woody species likely to be exploited rationally. The measures envisaged in the ESMP will be included in the specifications of the contractors.

4.6.5 During the exploitation of the road, the foreseeable negative impacts will concern: (i) increased rain water run-off that can cause floods in the low-lying areas (ii) increased accident risk due to higher vehicle speeds unless the appropriate measures are taken; (iii) increased risk of accidental oil spillage in the forest belts. Campaigns of information and sensitization to safety problems will be carried out among roadside dwellers, drivers, in particular heavy vehicle drivers. The program envisages the installation of road signs to slow down vehicle speeds at sensitive spots. The public awareness campaigns consisting of talks, posters and billboards will be carried out by operators specialized in water-borne diseases, STI and HIV-AIDS, environmental protection, and road safety. These seminars will concern hauliers' trade unions conveyors, drivers, women, children and young people, and notably the school children.

4.6.6 The cost of the environmental and social measures is estimated at CFAF 2,950 million, a good part of which is included in the construction works contracts. Other measures concern sensitization to the need for maintaining in a proper state the rehabilitated borrow zones , road safety, in particular the rights of agglomerations and school establishments. The monitoring of the implementation of the environmental and social measures, and the search for appropriate solutions to the environmental problems will be carried out by the program management body . This management body will be reinforced by an environmentalist of the respective Environment Departments of the two countries, and will intervene on a part-time basis to take see to the implementation of environmental measures. Quarterly environmental monitoring reports will be sent to ADF.

Implementation of the ESMP and Mitigative Measures

4.6.7 Mitigative measures will be included in the specifications of contractors. The executing agencies will also ensure the taking into account of the environmental and social protection measures throughout the Labé-Tambacounda road. Mitigative measures cover : (i) potential impacts of the program on the human environment, particularly on gender: perception, health, safety, quality of human lives, socio-economic activities; (ii) afforestation along the road, to offset the loss of the forest species and fruit trees in the rights of way and the quarries, in accordance with national laws; (iii) clear delimitation of the quarry zones, and their exploitation in accordance with the provisions of the environment code. Owners of crops destroyed in the borrow zones will be compensated in accordance with the applicable regulations in each country. After exploitation, these quarries must be rehabilitated.

4.6.8 During implementation of the works, campaigns of information on and sensitization to road safety, the environment, water-borne diseases, STI and the HIV-AIDS, malaria will be carried out among roadside populations and drivers, notably of heavy vehicles. These campaigns will be carried out through local radio, talks, posters and billboards.

4.6.9 The implementation of the environmental and social measures envisaged will be controlled by the works control office. The environmental and social monitoring will be also carried out by the Directorates of the Environment, in consultation with the other Technical Directorates (in particular National Forestry Commission). In addition, the Project Owner must ensure that the same conditions apply to the other donors.

4.6.10 To mitigate the negative impacts of the program, the actions to be carried out during the implementation program phase were identified and their costs were included in the program cost, viz: (i) the cost of monitoring the implementation of the environmental and social measures; (ii) the cost of safeguarding of the natural resources, including the creation and equipment of forest stations and sensitization/IEC; (iii) the cost of regeneration and embellishment of the sites; and (iv) the cost of compensation for expropriation of property estimated at UA 0.35 million of which UA 0.19 million (or GNF1 369.40 million for Guinea) and UA 0.15 million (or FCFA 116.57 million for Senegal). In addition, there are related works of a social nature (tracks, boreholes, rehabilitation of schools, construction of carparks and markets) as well as the work directly included in the specifications of contractors or control missions ( rehabilitation of quarries and borrow zones or their transformation into watering places for wildlife and cattle, road signs, restoration of work camps and work sites, distribution of condoms, pinpoint services of environmental experts etc). Compensation of the populations affected by the construction of the corridor roads and availability of the resettlement site constitute conditions for the ADF grant to Guinea and ADF loan to Senegal.

4.7 Estimated Program Cost

4.7.1 The estimated cost net of taxes and customs duties of the entire program is UA 147.76 million, of which UA 117.8 million in foreign exchange and UA 29.96 million on local currency. The estimated cost of the components jointly financed by the ADF, WADB, WAEMU, private transport operators and the two Governments is UA 67.91 million of which UA 53.92 million in foreign exchange and UA 13.99 million in local currency. The provision for physical contingencies is 10% of the baseline cost. The provision for compound price escalation is equal to 8.41% of the baseline cost plus physical contingencies. The summary of the cost estimate by component of the entire program and the ADF program (part of the program jointly financed by ADF, BOAD, WAEMU Commission, transport operators, and the Governments of Guinea and Senegal) are given respectively in Tables 4.1 and 4.2 below.

Table 4.1 Summary of Estimated Cost by Component of the Entire Program

Euros Million UA Million COMPONENTS FE LC Total FE LC Total A – Major roads 106.08 26.73 132.81 91.27 23.00 114.27 B – Related works 4.00 0.99 4.99 3.44 0.85 4.29 C - Transport facilitation 4.23 1.06 5.29 3.64 0.91 4.55 D – Program management and monitoring 0.51 0.42 0.93 0.44 0.36 0.80 Baseline cost 114.82 29.20 144.02 98.79 25.12 123.91 Physical contingencies 11.48 2.92 14.40 9.88 2.51 12.39 Price contingency 10.62 2.70 13.32 9.14 2.32 11.46

Total cost excluding expropriations 136.92 34.82 171.74 117.81 29.96 147.76

COMPENSATION FOR EXPROPRIATION 0.41 0.41 0.35 0.35

Table 4.2 Summary of Estimated Costs by Component of ADF Program COMPONENTS Euros million UA million FE L.C Total FE LC. Total A – Major roads 44.55 11.34 55.90 38.33 9.76 48.09 - Guinean section 23.82 5.95 29.77 20.49 5.12 25.61 - Senegalese section 17.36 4.35 21.71 14.94 3.74 18.68 - Environmental measures 0.44 0.30 0.74 0.38 0.26 0.64 - Works control and supervision 2.71 0.69 3.40 2.33 0.59 2.92 - Sensitization 0.22 0.06 0.28 0.19 0.05 0.24 B – Related works 3.29 0.80 4.09 2.83 0.69 3.52 - Earth roads 2.25 0.56 2.81 1.94 0.48 2.42 - Socio-economic rehabilitation 0.77 0.19 0.95 0.66 0.16 0.82 - Works control and supervision 0.27 0.06 0.33 0.23 0.05 0.28 C – Transport facilitation 4.35 1.10 5.45 3.74 0.94 4.68 - Studies, seminar and sensitizations 0.59 0.15 0.74 0.50 0.13 0.63 - - Construction of equipped juxtaposed check point 1.22 0.30 1.52 1.05 0.26 1.31 - Axle-load scales 0.73 0.19 0.92 0.63 0.16 0.79 - Installation of radio system 1.58 0.40 1.98 1.36 0.34 1.7 - Works control and supervision 0.23 0.06 0.29 0.2 0.05 0.25 D – Program management and supervision 0.39 0.38 0.77 0.34 0.33 0.67 - Surveys, Monitoring and Evaluation 0.24 0.06 0.30 0.21 0.05 0.26 - Operation of JTC / executing agency 0.00 0.29 0.29 0.25 0.25 - Financial and accounting audit 0.15 0.03 0.18 0.13 0.03 0.16 Baseline cost 52.58 13.63 66.21 45.24 11.72 56.96 Physical contigencies 5.26 1.36 6.62 4.52 1.17 5.69 Price contingency 4.86 1.26 6.13 4.19 1.07 5.26 TOTAL COST EXCL. EXPROPRIATIONS 62.70 16.25 78.96 53.95 13.96 67.91 COMPENSATION FOR EXPROPRIATION 0.13 0.13 0.11 0.11

4.7.2 The Summary of Cost by Expenditure Category of the Entire Program and the ADF Program are shown respectively in Tables 4.3 and 4.4

Table 4.3 Summary of Cost Estimates by Expenditure Category of the Entire Program COMPONENTS Euros million UA million FE L.C Total FE LC. Total

A - Goods 2.31 0.59 2.90 1.99 0.50 2.49 B - Works 104.30 26.26 130.56 89.74 22.59 112.3 C – Consultancy services 7.90 1.99 9.89 6.80 1.71 8.51 D - Miscellaneous 0.31 0.37 0.68 0.26 0.32 0.58 Baseline cost 114.82 29.21 144.03 98.79 25.12 123.9 Physical contingencies 11.48 2.92 14.40 9.88 2.51 12.39 Price contingency 10.62 2.70 13.32 9.14 2.32 11.46

TOTAL COST 136.92 34.83 171.75 117.81 29.96 147.76

Table 4.4 Summary of Estimated Costs by Expenditure Category of ADF Program Euros million UA million CATEGORIES FE L.C Total FE LC. Total A - Goods 2.31 0.59 2.90 1.99 0.50 2.49 - Radio equipment 1.58 0.40 1.98 1.36 0.34 1.70 - Axle load scales 0.73 0.19 0.92 0.63 0.16 0.79 B - Works 45.86 11.65 57.51 39.46 10.02 49.48 - Major roads 41.18 10.30 51.48 35.43 8.86 44.29 - Earth roads 2.25 0.56 2.81 1.94 0.48 2.42 - Construction of equipped border check point 1.22 0.30 1.52 1.05 0.26 1.31 - Socio-economic infras. Rehabilitation 0.77 0.19 0.96 0.66 0.16 0.82 - Environmental work 0.44 0.30 0.74 0.38 0.26 0.64 C – Consultancy services 4.10 1.02 4.82 3.53 0.88 4.41 - Works control and supervision 3.21 0.80 4.01 2.76 0.69 3.45 - Studies radio and juxtaposed check point 0.28 0.07 0.35 0.24 0.06 0.30 - Surveys, monitoring and evaluation 0.24 0.06 0.30 0.21 0.05 0.26 - Sensitization 0.22 0.06 0.28 0.19 0.05 0.24 - Financial and accounting audit 0.15 0.03 0.18 0.13 0.03 0.16 D - Miscellaneous 0.31 0.37 0.68 0.26 0.32 0.58 - Seminars /stakeholder sensitization 0.31 0.08 0.39 0.26 0.07 0.33 - Operation 0.29 0.29 0.25 0.25 Baseline cost 52.58 13.63 66.21 45.24 11.72 56.96 Physical contingencies 5.26 1.36 6.62 4.52 1.17 5.69 Price contingency 4.86 1.26 6.12 4.19 1.07 5.26 TOTAL COST EXCL. EXPROPRIATIONS 62.70 16.24 78.95 53.95 13.96 67.91

4.8 Financing Sources and Expenditure Schedule

4.8.1 The program will be jointly financed by ADF, WADB, WAEMU, private transport sector operators, and the two Governments and at the same time other donors (ABEDA/IDB/Others and SDF/KFAED/OPEC). The ADF grant will be used to finance part of: the “transport facilitation” and “program management” components; (ii) upgrading works and control of the road and related works in Guinea, in particular the 128km of the Boumehoun- border section and the Koundara connecting road; (iii) works and control relating to mitigation of negative environmental impacts in Guinea; and (iv) sensitization to road safety, malaria, HIV/AIDS and environmental protection in Guinea. The ADF loan will be used to finance part of cost of: (i) the works and control of related works and road rehabilitation of the 89km of the Tambacounda-Medina Gounass section in Senegal, including the Daka connecting road; (ii) the works and control of the mitigation of negative impacts on the environment in Senegal; and (iii) sensitisation to road safety, malaria, HIVA/AIDS and environmental protection in Senegal. The overall contribution of the ADF amounting to UA56.4 million represents 38.17 million of total cost of the entire program and will be used to cover 43.10 percent of the foreign exchange cost and 18.8 percent of the entire program cost in local currency.

4.8.2 WADB will contribute to the financing of part of: (i) construction works and control of rehabilitation works on the 89km of the Tambacounda-Medina Gounass road section and the Daka connecting road in Senegal. The contribution of the other donors (ABEDA/IDB/Abu Dhabi Fund and SDF/KFAED/OPEC) will be used to finance the works and control of road works in the two countries and technical assistance in Guinea. The financing arrangement will be finalized following the commitments of WADB and the Abu Dhabi Fund with which discussions are well advanced. The evidence of financing by the other donors or their commitments to contribute to the said financing is a condition for the loan and grants under this program.

4.8.3 The contribution of WAEMU will be used to finance part of the cost of the “transport facilitation” and “program management” components. Private transport operators will finance the installation of radio receivers on board inter-State transport vehicles. The contributions of the two Governments will be used for the partial financing of road and environmental protection works as well as sensitization and program management.

4.8.4 The financing plan by financing source of the entire program and that of the ADF program are shown in Tables 4.5 and 4.6 below:

Table 4.5 Financing Source of the Entire Program (in UA million) Source FE LC Total % ADF Loan 18.65 1.85 20.50 13.88% ADF Grant 32.12 3.78 35.90 24.30% PRIVATE TRANSPORTERS 0.16 0.16 0.11% WAEMU 0.59 0.59 0.40% WADB 3.15 0.79 3.93 2.66% ABEDA/IDB/Others 24.36 3.04 27.40 18.54% SDF/KFAED/OPEC 39.53 4.94 44.47 30.09% GOVERNMENTS 14.81 14.81 10.02% Total excl. expropriations 117.80 29.96 147.76 100%

Table 4.6 Financing Source of ADF Program Source FE LC Total % ADF loan 18.65 1.85 20.50 30.19% ADF Grant 32.12 3.78 35.90 52.87% Private transporters 0.16 0.16 0.23% WAEMU 0.59 0.59 0.87% BOAD 3.15 0.79 3.93 5.79% GOVERNMENT 6.82 6.82 10.04% Total excl. expropriations 53.92 13.99 67.91 100.00%

4.8.5 The expenditure schedule by component of the entire program as well as the ADF program are shown in Tables 4.8 and 4.9 below

Tableau 4.8 Expenditure Schedule by Component of the Entire Program Components 2007 2008 2009 2010 2011 Total

A – Major roads 23.29 34.14 45.46 11.38 0.00 114.27 B – Related works 0.00 0.86 1.29 1.72 0.43 4.29 C- Transport facilitation 0.38 0.91 1.42 1.48 0.35 4.54 D – Program management and monitoring 0.11 0.17 0.23 0.23 0.07 0.80 Base line cost 23.78 36.08 48.39 14.80 0.85 123.91 Physical contingencies 2.38 3.61 4.84 1.48 0.09 12.39 Price contingency 2.20 3.34 4.48 1.37 0.08 11.46

Total excl. expropriations 28.36 43.03 57.70 17.66 1.01 147.76

Total in % 19% 29% 39% 12% 1% 100%

Table 4.9 Expenditure Schedule by Component of the ADF program (in UA million) COMPONENTS 2007 2008 2009 2010 2011 Total A – Major roads - Guinean Section 5.12 7.68 10.24 2.56 0.00 25.61 - Senegalese Section 3.74 5.60 7.47 1.87 0.00 18.68 - Environmental Measures 0.38 0.13 0.13 0.00 0.00 0.63 - Works Control and Supervision 0.58 0.88 1.17 0.29 0.00 2.92 - Sensitization 0.02 0.05 0.07 0.09 0.00 0.24 B – Related works - Earth roads 0.48 0.73 0.97 0.24 2.42 - Socio-economic rehabilitation 0.16 0.24 0.32 0.08 0.82 - Works control and supervision 0.06 0.08 0.11 0.03 0.28 C – Transport facilitation - Studies, seminar and sensitizations 0.02 0.07 0.11 0.12 0.01 0.33 - Studies radio and juxtaposed checkpoint 0.24 0.06 0.00 0.00 0.00 0.30 - Construction of equipped juxt. check point 0.00 0.26 0.39 0.52 0.13 1.31 - Axle-load scales 0.08 0.16 0.24 0.31 0.00 0.79 - Installation of radio system 0.00 0.34 0.68 0.51 0.17 1.71 - Works control and supervision 0.05 0.05 0.05 0.05 0.05 0.25 D – Program management and supervision - Surveys, Monitoring and Evaluation 0.03 0.05 0.08 0.10 0.00 0.26 - Operation of JTC / executing agency 0.05 0.06 0.06 0.05 0.03 0.25 - Financial and accounting audit 0.03 0.03 0.03 0.03 0.03 0.16 Baseline cost 10.34 16.12 21.78 7.93 0.77 56.95 Physical contigencies 1.03 1.61 2.18 0.79 0.08 5.69 Price contingency 0.96 1.49 2.02 0.73 0.07 5.27

TOTAL COST EXCL. EXPROPRIATIONS 12.33 19.23 25.98 9.46 0.92 67.91 Total in % 18% 28% 38% 14% 1% 100%

4.8.6 The expenditure schedule by financing source for the entire program as well as that of the ADF program are shown in tables 4.10 and 4.11 below

Table 4.10 Expenditure Schedule by Financing Source of the Entire Program * (in UA million) Source 2007 2008 2009 2010 2011 Total ADF Loan 3.70 5.81 7.81 2.86 0.33 20.50 ADF Grant 6.38 10.13 13.59 5.46 0.34 35.90 PRIVATE HAULIERS 0.03 0.05 0.06 0.02 0.16 WAEMU 0.05 0.12 0.15 0.19 0.05 0.59 WADB 0.79 1.18 1.57 0.39 3.93 ABEDA/IDB/Others 5.48 8.22 10.96 2.74 27.40 SDF/KFAED/OPEC 8.89 13.34 17.79 4.45 44.47 GOVERNMENTS 3.08 4.20 5.78 1.50 0.27 14.81 Total excl. expropriations 28.36 43.03 57.70 17.66 1.01 147.76 Total in % 19% 29% 39% 12% 1% 100%

Table 4.11 Expenditure Schedule by Financing Source of the ADF program (in UA million)

Source 2007 2008 2009 2010 2011 Total ADF loan 3.70 5.81 7.81 2.86 0.33 20.50 ADF Grant 6.38 10.13 13.59 5.46 0.34 35.90 Private transporters 0.03 0.05 0.06 0.02 0.16 WAEMU 0.05 0.12 0.15 0.19 0.05 0.59 BOAD 0.79 1.18 1.57 0.39 3.93 GOVERNMENT 1.42 1.96 2.80 0.49 0.18 6.82 Total excl. expropriations 12.33 19.23 25.98 9.46 0.92 67.91 Total in % 18% 28% 38% 14% 1% 100%

5. PROGRAM IMPLEMENTATION

5.1 Executing Agency

5.1.1 The WAEMU Commission through the Department of Community Regional Development. Infrastructure. Transport and Telecommunication (DATC) will be responsible for the general coordination of the program and all the procurements concerning the components relating to the facilitation and general sensitization and monitoring and evaluation of the program. The DATC will rely on the Technical Directorates which are Directorate for Regional Development and Infrastructure (DAI) and the Directorate of Transport and Telecommunications (DTT). These two Departments currently have adequate human resources. Furthermore. they have acquired sufficient experience in the implementation of similar projects. Moreover. DATC and the accounting officer of WAEMU will be charged with administrative, technical and financial management of the program aspects relating to transport facilitation, sensitization and program management. Guinea, which is not a WAEMU member State has requested the Union to perform this task given its experience in that area. An agreement on the issue has been signed by the three parties, namely the Government of Guinea, the Government of Senegal and WAEMU.

5.1.2 The Ministry of State in charge of Equipment. Regional Development and the Environment (MEATE) of Guinea and the Ministry of Infrastructures, Equipment, Land Transport and Internal Maritime Transport (MIETTMI) of Senegal will play their usual role of executing agency of the works on their respective territories. Accordingly, the DNIR of Guinea 32 and AATR of Senegal will carry out on behalf of their respective ministries, the management of program activities on their territories (procurement of works, goods and services, and technical, accounting, financial, organizational and environmental management). They will prepare quarterly status reports on program activities on their respective territories.

5.2 Institutional Arrangements

5.2.1 The program will rely on the institutional mechanisms already put in place (National Road Transport and Transit Facilitation Committee already set up in Guinea and Senegal, a regional Committee of the same type set up within ECOWAS and the Steering Committee of the Community Road Transport and Transit Action Plan), as well as observatories on corridor practices that are being put in place. The program coordination aspect, and that of procurements concerning the components relating to facilitation. General sensitization and training will be directly managed by DATC. To enable DATC to perform its duties successfully and cope with additional functions. WAEMU is in the process of engaging 4 senior staff (engineers and economist), which should be completed by the end of the year 2006.

5.2.2 The DNIR and AATR have qualified human resources and sufficient equipment to carry out the technical monitoring of the program. However. given that the program will entail additional workload, institutional support is envisaged for the DNIR in the form of technical assistance financed by the IDB and ABEDA. Each country has appointed an engineer as program officer, whose CV and qualifications are deemed acceptable. They will monitor all program activities at the national level.

5.2.3 To ensure proper coordination of program activities, a Joint Technical Committee (JTC) comprising Directors of roads. transport and the environment of each of the two countries or their representatives. as well as those of the DATC ( DAI and DTT). has been set up under the Coordination agreement signed between WAEMU and the two countries. This Committee will be coordinated by the DATC of WAEMU. The JTC’s mission will be to coordinate program implementation, resolve any problems that may arise and ensure a smooth implementation of the program in the two countries. It will be meeting at least three times a year successively in one of the two countries and at the WAEMU headquarters and related costs will be included in the program cost.

5.2.4 Experienced and qualified consulting firms will be recruited for the control and supervision of works of the different lots. Their teams will comprise environmental experts for the implementation of environmental protection measures. Furthermore, these firms will use the services of specialized and approved laboratories for all geo-technical aspects of the works. Under the authority of the two executing agencies. they will monitor the conduct of works; the technical quality and environmental control, the recording of the works implemented and their billing and lastly will draft the implementation and completion reports.

5.3 Implementation and Supervision Schedule

5.3.1 The implementation of the program components financed by ADF will run from April 2007 to August 2010 that is a period of about 39 months. The corresponding implementation schedule presented in annex is summarized as follows: 33

Table 5.1 Implementation Schedule ACTIVITIES 1. PRELIMINARY ACTIVITIES Approval of loan and grant ADF Nov. 2006 Signature of loans and grant ADF/WAEMU/Govts Dec. 2006 Publication of general information note ADF/Govts/WAEMU Jan. 2007 2. SENSITIZATION AND MONITORING AND EVALUATION Contract award DNIR/AATR/WAEMU/ADF Oct. 2007 Start of sensitization and monitor and evaluat. DNIR/AATR/WAEMU/Cons Nov. 2007 End of sensitization and monitor.and evaluat. DNIR/AATR/WAEMU/Cons/ADF Aug.2010 3. STUDIES-RADIO COMMUNICATION AND JUXTAPOSED CHECK POINT Contract award WAEMU/ADF Sep. 2007 Start of studies WAEMU/Consultant Oct. 2007 End of studies WAEMU/Consultant April 2008 4. RELATED WORKS Contract award DNIR/ AATR /ADF Sep. 2008 Start of works DNIR /AATR /ADF/Contractor Oct. 2008 End of related works DNIR /AATR/Contractors Apr. 2010 5. Construction of juxtaposed checkpoint Contract award WAEMU/ADF Jan. 2009 Start of construction works of the check point WAEMU/ Contractor Feb. 2009 End of works of juxtaposed checkpoint WAEMU /Contractor/ ADF Feb. 2010 6. ROAD WORKS Contract award DNIR/AATR/ADF Dec. 2007 Start of ADF roadworks Contractors /DNR/AATR Jan. 2008 End of ADF roadworks DNIR/AATR/ Contractors Jan. 2010 Start of road works of other donors DNIR/AATR/ Contractors Sept.2007 End of roadworks of other donors DNIR/AATR /Contractors Mar.2010 7. SUPPLY AND INSTALLATION OF EQUIPMENT 7.1 Contract award Start of supply and installation WAEMU Jan. 2009 End of supply and installation Suppliers Sep. 2009 Suppliers/ WAEMU Dec. 2010 7.2 Axle-load scales Contract award WAEMU/ADF Mar.2009 Start of supply and installation Suppliers/WAEMU Nov.2009 Nov. End of supply and installation Suppliers/WAEMU 2010 8. WORKS CONTROL AND SUPERVISION Contract award Start of ADF works control services DNIR/AATR/ADF Aug. 2007 End of ADF works control services WAEMU/DGR/DNR Dec. 2007 Start of non-ADF works control services DNIR/AATR/ADF Mar. 2010 End of services non-ADF works control services DNIR / AATR /Consul/Donors Aug. 2007 DNIR / AATR /Consul/Donors Apr. 2010

9. PROGRAM AUDIT Contract award WAEMU/ADF Nov. 2007 Start of services Consultant/WAEMU Dec. 2007 End of services Consultant/WAEMU Jun. 2010 Sept. 2006 10. PROGRAM MONITORING Installation of program officers DNIR/AATR Apr. 2007 Installation of Joint Technical Committee WAEMU/Guinea/Senegal Apr. 2007 May Start of training and seminars WAEMU/DNIR/AATR 2008 End of training WAEMU/DNIR/AATR Apr. 2010 Apr. Start of program monitoring WAEMU/DNIR/AATR 2007 End of program monitoring WAEMU/DNIR/AATR/ADF Aug. 2010 34

5.3.2 Once the loans and the grant are approved. ADF will launch the program and then conduct supervision missions, the estimated schedule and composition of which are shown below:

Table 5.2 Estimated supervision schedule

Approx. Date Activity Composition of Mission Staff Weeks 20/02/2006 Launching Project officer. one disbursement officer. 4.5 one procurement officer 22/08/2006 Joint supervision of Project Officer (transport economist & 5 donors Civ. Eng.) & Audit officer 23/04/2007 Supervision Project Officer (transport economist & 7.5 Civ. Eng.) & Jurist 19/11/2007 Mid-term Review of Project Officer (transport economist & 7.5 Project Civ. Eng.) & and Audit Officer 20/07/2008 Supervision Project Officer (transport economist & 7.5 Civ. Eng.) 29/01/2009 Supervision Project Officer (transport economist & 5 Civ. Eng.) 30/11/2009 Joint supervision of Project Officer (transport economist & 7.5 donors Civ. Eng.) & Jurist 01/07/2010 Completion report Transport Economist & Civ.Eng. 7 Total 51.5

5.4 Procurement of Goods. Works and Services

5.4.1 The procurement arrangements under the program are summarized in the following general table on procurements. All goods works and services financed by ADF will be procured in accordance with the Bank rules of procedure for the procurement of works, goods and services. or as the case may be, the Bank rules of procedure for the use of consultancy services and using appropriate standard bidding documents of the Bank.

Table 5.3 Procurement Arrangements for ADF-financed Works, Goods and Services (in UA million)

a Non ICB Others Shortlisting b Total Expenditure categories ADF A - Goods - Radio communication equipment 1.88 [1.69] 0.16 2.03 [1.69] - Axle load scales 0.94 [0.84] 0.94 [0.84] Total A 2.82 [2.53] 0.16 2.97 [2.53] B – Works - Road works related and environmental work 57.43 [47.42] 74.96 132.39 [47.42] - Construction of checkpoint 1.56 [1.41] 1.56 [1.41] Total B 59.00 [48.83] 74.96 133.96 [48.83] C – Consultancy service - Control of road and related works 3.82 [3.16] 4.89 8.71 [3.16] - Studies and works control equipped juxt. 0.65 [0.58] 0.65 [0.58] Checkpt and installation of radio and axle-load scales - Surveys, Monitoring and Evaluation 0.31 [0.31] 0.31 [0.31] - Sensitization 0.28 [0.25] 0.28 [0.25] - Financial and accounting audit 0.19 [0.19] 0.19 [0.19] Total C 5.25 [4.49] 4.89 10.53 [4.88]

D – Miscellaneous - Operation 0.16 [0.16] 0.14 0.30 [0.16] - Seminar/Study trips/Sensitization 0.39 [0.39] 0.23 [0.23] Total D 0.55 [0.55] 0.14 0.30 [0.16]

Total excl. expropriations 61.81 [51.36] 0.55 [0.55] 5.25 [4.49] 80.15 147.76 [56.40]

Compensation for expropriations 0.35 0.35

[] ADF (a) Expenses will be made against supporting documents by WAEMU

(b) Works and consultancy services procured following the procedures of other donors (IDB/ABEDA/KFAED and OPEC). Procurement according to national procedures for goods entirely financed by the Government or WAEMU (operation. expropriations) and according to own procedures for those entirely financed by transport operators (on board radios)

Goods

5.4.2 A radio communication system of an amount of UA 1.88 million will be procured through international competitive bidding launched by WAEMU. Axle-load scales will be procured and installed on the corridor for a total amount of UA 0.94 million through international competitive bidding launched by WAEMU.

Works

5.4.3 Road construction and rehabilitation as well as environmental protection works and related works of an amount of UA 57.43 million will be procured through international competitive bidding launched by each of the countries for the road stretches within its territory. The said works will be divided into one lot in Guinea (UA 31.73 million) and one lot in Senegal (25.71 million). Given the uncomplicated nature of works, pre-qualification of contractors was not deemed necessary

5.4.4 Construction works of the equipped juxtaposed check point at the border of an amount of UA 1.56 million will be procured through international competitive bidding, launched by WAEMU. 36

Consultancy Services

5.4.5 Consultancy services for the control and supervision of road works of a total amount of UA 3.82 million will be procured through short-listing. They will be divided up into: (i) one lot in Guinea of an amount of UA 2.09 million, and (ii) one lot in Senegal of an amount of UA 1.73 million. Given the uncomplicated nature of the services, pre-qualification of contractors was not deemed necessary.

5.4.6 Consultancy services for studies, control and supervision of construction works of the juxtaposed checkpoint, installation of axle-load scales and a radio communication system of an amount of UA 0.65 million will be procured through short-listing. They will be divided up into two lots, launched by WAEMU: (i) the studies, works control and supervision of the construction of the checkpoint and installation of axle-scales, of an amount of UA 31 million; (ii) the studies and control of the setting up of the radio communication system, of an amount of UA 0.34 million.

5.4.7 Consultancy services for: (i) surveys and monitoring and evaluation, of an amount of UA 0.31 million; (ii) program audit, of an amount of UA 0.19 million, will also be procured by WAEMU through shortlisting.

5.4.8 The sensitization of program area dwellers to: (i) road safety; (ii) environmental protection; (iii) control of malaria, and STI such as HIV/AIDS, of a total amount of UA 0.28 million will be procured at the level of each country through shortlisting of NGOs The services of any individual consultant not exceeding 2 (two)months shall be procured through direct negotiations.

5.4.9 The procedure for the selection of works control and supervision firm, and the consulting firm, will be the result of the combined evaluation of the technical proposals and the bid amounts (with price consideration). For the program accounts audit and the sensitisation seminars, the selection procedure shall be based on the selection of the lowest price for comparable services. Consultancy services of an amount of over UA 350 000, will be published in a UNDB notice. Consultancy services of a lower amount will be published at the regional level. Miscellaneous

5.4.10 Expenditure relating to the organization of seminars. study trips; stakeholder sensitization and operation of the Joint Technical Committee of an amount of UA 0.55 million will be made against supporting documents furnished by the WAEMU Commission.

National Laws and Regulations

5.4.11 National Laws and Regulations concerning procurement procedures in Guinea and Senegal and the WAEMU commission have been examined and deemed accepted.

Executing Agency

5.4.12 The Department of Regional Development and Infrastructures, Transport and Telecommunications of WAEMU, the National Directorate of Road Investment of the Ministry of Public Works of Guinea and the AATR of Senegal will be responsible for works, goods and services procurement. Their resources, capacities, expertise and experience are adequate to carry out the procurement envisaged under this program.

General Procurement Notice

5.4.13 The text of a general procurement notice (GPN) will be adopted with letter heads of WAEMU or national executing agencies and issued for publication in “Development Business” once the Board of Directors of the Bank approves the loan and grant proposals.

Review Procedure

5.4.14 The following documents will be subject to review and approval by ADF prior to publication.

(i) General and Specific Procurement Notices;

(ii) Competitive bidding documents, local shopping documents, terms of reference and letters of invitation to consultants;

(iii) reports on the evaluation of bids from contractors and suppliers or consultants’ proposals including recommendations on the award of contracts;

(iii) draft contracts, if those included in the competitive bidding or shopping documents are modified.

5.5 Disbursement Arrangement

The direct disbursement method is adopted for works and consultancy services financed by ADF loans to Senegal and the ADF grant to Guinea. Concerning the ADF grant to WAEMU, it will be managed according to the special account method. The resources of the grant will be deposited in tranches, according to an annual program of activities drawn up by DATC, in a separate account opened at BCEAO by WAEMU in the name of the program. The account opened at BCEAO will be replenished on the basis of supporting documents.

5.6 Monitoring and Evaluation

5.6.1 Monitoring and evaluation will comprise internal and external monitoring. supervision missions of the Bank and other co-financiers. a mid-term review and a completion evaluation including completion reports from borrowers and WAEMU as well as that of the Bank. The implementation of the program will be covered by: (i) monthly and quarterly reports drawn up by consultants responsible for the control and supervision of works and the monitoring of other program components; and (ii) quarterly monitoring and evaluation report by the consultant responsible for defining the indicators of impact measurement and for measuring their evolution. WAEMU will furnish to the bank on a quarterly basis. a report on the implementation of the 38 program according to the format in force. This report will take into account the execution of all the components of the program including those sent by the countries. The same shall apply to annual programs and activity report. annual budget as well as their implementation report. The coordination of donor interventions under the program as well as the organization of joint supervision missions will be carried out by WAEMU in collaboration with the two countries.

5.6.2 The consultants responsible for the control and supervision of works will at the end of the said works draw up end-of-works reports which they shall submit for validation to the executing agencies of the respective countries which will prepare a project completion report of the borrower according to the format in force and within six months of project completion. WAEMU will use these different reports to prepare the completion report of the program. The consultants will assist the executing agencies at the final acceptance of works in the two countries. Furthermore. the executing agencies of the two countries will organize regularly on the corridor a traffic counting campaign to enable verification of traffic assumptions.

5.6.3 The WAEMU accounting officer will keep the general accounts of the ADF grant. Each country will keep accounts of the road components on its territory. An annual audit of the program will be conducted and the audit report communicated to the Bank. The latter will permit WAEMU. the two Governments and the Bank as part of the implementation of the project to ensure that: (i) the resources of the grant and the loan are used to finance the program; (ii) the accounting of the grant and the loans is properly kept; and (iii) the procedures of the Bank concerning the administration of loans and grants are well followed.

5.6.4 Furthermore, the executing agency will carry out an annual monitoring and evaluation of the indicators of the program objectives. These include: (i) trends of intra-community and external trade with the outside; (ii) rate of construction of corridor roads; (iii) truck turnaround time including removal of goods at the Dakar Port. transportation on the corridor and customs formalities; (iv) issuance of instruments regulating axle load; (v) implementation of axle load controls on the corridor; (vi) trends of average cost on the corridor to reflect general trends of basic cost constituting the VOC in constant currency (eg. benchmark year values); (vii) trends of the share of transport in the cost of imported or exported products of the two countries through the corridor; and (viii) the inter-state transport fleet renewal rate on account of the reduction of “invisible” costs etc.

5.7 Accounting and Financial Audit Report

The accounts of the program will be kept separately by the executing agency in the countries and WAEMU according to a private- type accounting system and a computerized system of accounting management in accordance with the OHADA accounting system. This system will permit the monitoring of program expenditure based on estimates by source of financing, by expenditure category and by component. An external audit of program accounts will be conducted each year by an audit firm recruited according to Bank Group procedures. A provision is earmarked from program funds to that end. Audit reports shall be submitted to ADF at the latest within six months of the end of each financial year. Given that the project will be implemented over a period of three years and three months, it is agreed that the Donee and Borrowers will ensure the conduct of four annual audits, the last of which will take place at the end of the program. 39

5.8 Coordination of Assistance

5.8.1 In Guinea, the coordination of assistance in the transport sector is carried out within the framework of monitoring of the actions of the National Transport Program (NTP), but also through consultative frameworks established on the basis of policy and strategy documents adopted following broad internal and external consultations, organized by the Guinean Government. Concerning the program, which belongs to the road subsector and specifically the transport sector, coordination will be done annually within the framework of the monitoring of the implementation of the NTP, which covers the trunk roads as well as the major urban streets. Moreover, the various Bank missions for the preparation of this program in March 2006, as well as the monitoring of other Bank financed projects constitute opportunities to hold dialogue and working sessions with the donors represented in Guinea. In addition, regular contacts took place with the co-financiers partners of the program. Like the ADB/WAEMU, joint preparation and appraisal missions which took place in 2006, it is envisaged that during the implementation phase of the program, there will be joint supervision missions comprising the same institutions.

5.8.2 In Senegal, the coordination of the assistance in the transport sector has been carried out since 1989 within the framework of the preparation and implementation of the transport sector programs, which constitute the key benchmark framework for transport sector operations for the period under consideration (PAST 1989-1999 and PST.2 2000-2006). For these two programs, several coordination and consultation meetings were held inside and outside Senegal. The Bank played an active role in the meetings, which took place in Paris in February 1999 and Dakar in July 2000 on the preparation and the details of implementation of the PST.2. On the sidelines of these formal meetings, information and opinions are exchanged between donors on the status of implementation of the ongoing program and ideas on a new program concept, and during operational missions of the Bank in the country. Within the specific framework of PST 2, the donors represented in Senegal (AFD, BOAD, World Bank, European Union and bilateral partners) adopted the principle of a monthly sector dialogue which enables them to exchange information and opinions on the conduct of this program. These consultations, which are open to the representation of the Bank in the country; are of definite significance for the improved performances of each operation.

5.8.3 In addition, the program will be monitored in Guinea by the National Directorate of Road Investments (DNIR), and in Senegal by the Autonomous Road Works Agency (AATR). These two institutions have adequate material and human resources to monitor the program. However, given that the program will involve additional workloads, institutional support is envisaged for these two executing agencies. Lastly, to ensure a proper coordination of program activities, the setting up of a Joint Technical Committee (JTC) is envisaged comprising the Directors of roads, surface transport and the environment of each of the two countries or their representatives as well as those of the DATI of the WAEMU Commission . This Committee will be coordinated by the DATI. The JTC will play the role of coordinating the implementation of the program, resolving any problems that may arise and ensuring the smooth implementation of the program in the two countries.

6. PROGRAM SUSTAINABILITY AND RISKS

6.1. Recurrent Costs

6.1.1 Recurrent costs comprise mainly routine and periodic maintenance costs financed from resources earmarked for road maintenance in the two countries. Routine maintenance costs are annual, while periodic maintenance consists in renewing the surface course by applying hydrocarbonated surfacing on tarred roads every ten years. In Senegal, routine maintenance costs for all program road section are estimated at CFAF 371.25 million per year as from the commissioning of the road and the periodic maintenance costs at CFAF 10800 million every 10 years. Periodic maintenance costs are estimated at CFAF 8.475 million every seven years. In Guinea. routine maintenance costs stand at CFAF 721.48 million and periodic maintenance costs will amount to CFAF 20130 million.

6.1.2 Concerning facilitation infrastructures, it is envisaged that management will be entrusted to private or semi-private structured which will be responsible for their maintenance and renewal of the materiel and equipment. The management agreements to be signed will specify the maintenance standards with the obligation of result. The Manager will be remunerated on the basis of its performances. Such remuneration will be charged to transport operators that are beneficiaries of the services and of the facilitation. Similarly, the maintenance of socio- economic infrastructures rehabilitated by the program will be carried out in accordance with the policy in force. In the two countries, which will call on the beneficiary population through village committees to carry out routine maintenance of earth roads and management and maintenance of social and commercial facilities as well as boreholes.

6.2. Program Sustainability

6.2.1 The technical solutions of road rehabilitation and/or design recommended by studies on the road sections of the corridor were determined on the basis of present and future traffic and the geotechnical characteristics of in situ soil. The useful life of the corridor roads adopted will be achieved if the exploitation and traffic policing conditions on these roads, in particular those concerning overload are in conformity with the road designs and if routine and periodic maintenance are carried out without delay.

6.2.2 The financing of this program of mobile and fixed axle load scales on the corridor will supplement what is envisaged under the Bamako Dakar road via the South and will permit strengthening or axle load control and thus reduce risks of early degradation. In Guinea, the regulation and control relating to axle load already adopted will be harmonized taking into account the limit of 11.5 tonnes adopted by ECOWAS. This is one condition of the grant to Guinea.

6.2.3 To ensure proper routine maintenance of the priority road networks defined in the two countries which include the corridor sections, Guinea and Senegal have undertaken to increase and collect the resources allocated for road maintenance in order to cover recurrent costs. In Guinea, road maintenance resources are derived from fuel tax which the State allocates to the Road Maintenance Fund. However, given the insufficiency of the resources of the Road Fund (about GNF 20 billion/year), the Guinean Government has undertaken to increase it to the tune 41 of 50 billion per year, such that routine maintenance may be carried out on approximately 7000 km considered a priority. These provisions envisaged in the Memorandum of Understanding of the Tombo – Gbessia road project have to be satisfied by 31 December 2007.

6.2.4 In Senegal, road maintenance resources (CFAF 15 billion per year) are derived currently from the State budget. These resources are insufficient given the road maintenance needs (about CFAF 30 billion) and delays in mobilizing them led the Government to conduct a study on the creation of a second-generation road fund, whose results were recently validated. It is envisaged that in 2007, of the CFAF 18 billion allocated to road maintenance, 3 billion will represent own resources (levy paid directly into the FERA account) and 15 billion will be a budgetary allocation. Gradually, own resources will replace the allocation to reach CFAF 20 billion by 2010.

6.2.5 Concerning the infrastructure and facilitation measures. the establishment of a Management Committee (MC) of the corridor and their management by a private structure are likely to ensure their sustainability. Indeed the composition of the MC, which gives a predominant share to users and operators of the corridor who are beneficiaries of the facilitation measures is a guarantee of the maintenance of the said measures that will be put in place. Similarly, the obligation of result, which will be imposed on the private manager of the infrastructure is likely to ensure their maintenance. Concerning social infrastructures, the establishment of village committees and rural road committees will permit ownership and maintenance of such infrastructure.

6.2.6 Within the framework of transport sector projects in the two countries, training has been provided to stakeholders, namely SME, consulting firms and Ministry officials in charge of roads and transport. All these actions contribute to better performance of the said ministries in road maintenance and to the increase in length of roads of the priority network maintained.

6.2.7 Related infrastructure (earth roads. boreholes) will be maintained by local populations who will be supervised by village committees, in accordance with the strategies in force in the two countries. Furthermore, the other works will be exploited and maintained by the beneficiaries and councils. These activities will be supported through sensitization and training envisaged under this program.

6.2.8 Routine road maintenance experiment conducted by SME in the two countries has not always yielded expected results owing to the lack of equipment and unsatisfactory organization. However, the different training programs for these SME that are still going on and the award of three-year contracts have considerably improved SME performances. Regarding related infrastructure, the organization of rural populations and the institutional framework put in place contribute to financial capacity building and the protection of the investments made on the earth roads. All the above provisions will contribute to program sustainability.

6.3 Key Risks and Mitigative Measures

6.3.1 The key risks concerning the program are: (i) insufficient harmonization of program activity coordination between donors and the Bank, which could lead to program implementation delays; (ii) availability on schedule of sufficient resources for the road maintenance funds of the two countries to ensure sustainability of the road network; (iii) non-enforcement in Guinea of the ECOWAS instruments regulating axle-load control.

6.3.2 The first risk will be mitigated by the creation of a Joint Technical Committee chaired by WAEMU, which as part of its role. will see to the smooth conduct of activities of the entire program and coordination of related assistance. as well as the joint supervision missions of the project. The second risk will be mitigated by the undertaking by Guinea, under the Tombo- Gbessia road project. to improve the resources of FER by 31 December 2007 at he latest and the actions undertaken by Senegal to set up to that end at the latest on 31 December 2006 of an autonomous road maintenance fund. The third risk will be reduced by the undertaking by Guinea to harmonize before 31 December 2007, its instruments with those of ECOWAS in respect of axle load control.

7. PROGRAM BENEFITS

7.1 Economic Analysis

7.1.1 The economic benefits expected from the implementation of the program are linked to the effect of the opening up of landlocked countries, the increased mobility and the link-up with neighbouring countries, increased agricultural production and the development of trading activities in the project area. For purposes of economic analysis. the benefits were determined on ‘with’ and ‘without’ program scenarios over a period of twenty years for the main road and thirty years for the infrastructure of the juxtaposed check point at the border. A 12% discount rate and a 25% residual value have been used for the economic analysis. The economic analysis was undertaken using the HDM 4 model. The elements that enabled this economic analysis are: data on the condition of the road, data on the vehicles (light vehicles and heavy vehicles of over 3 tonnes), current and future traffic, maintenance policies and strategies and the different corresponding economic and financial unit costs collected during the mission (fuel, lubricants, prices of vehicles, maintenance tasks. etc.). Investment costs relating to transport and transit facilitation (check point and radio communication, and benefits relating thereto (30% reduction of illicit or double charges) have been taken into account as external costs and benefits in the model. The investment costs concerning rural connecting roads and related benefits due to improved agricultural production in the project area are also considered external costs and benefits in the model.

7.1.2 Annual average daily traffic (AADT) on the program road comprises international traffic and national traffic. According to data from traffic counts and origin/destination surveys conducted as part of the corridor road studies. The AADT weighted to the road length is broken down as follows: (i) 180 veh./d for lot 1- Labe Komba section; (ii) 128 veh./d for lot 2 – Komba – Boumeoun section; (iii) 191 veh./d for lot 3 Boumehoun – Guinea/Senegal border section; (iv) 101 veh./d for lot 4. Guinea/Senegal border – Medina Gounass section. and (v) 750 veh./d for lot 5 – Médina Gounass – Tambacounda section. The volume of heavy vehicles plying the program road ranges form 15% to 30% according to road sections. 43

7.1.3 The traffic forecast has taken into account two traffic categories: normal and induced. For normal traffic, the annual rates adopted are 70% for passenger transport vehicles and 9% for goods transport vehicles. These rates are justified given (i) the traffic record trends (on average 10% in Guinea and 9% to 11% in Senegal). (ii) economic importance (44% of products transported are agricultural and food products); (iii) the role of service of major neighbouring economic areas (Casamance, Ziguinchor) and product transit area (on average 30%) destined for importation and exportation. These growth rates also take into account economic indicators such as average economic growth rate of an average of 6% in 2005 and the estimated economic growth rate (2005-2008) of an average of 6%. Traffic induced by change of technical specifications of the road represents 50% of normal traffic and will increase at the same rate as normal traffic.

7.1.4 In the ‘without project’ situation, it was considered that maintenance would comprise the acquisition and operation of ferry boats in the rainy season on the Bantala and the Bafing and resurfacing and surface reshaping works and sundry road maintenance clearing cleaning of gutters and drainage works. In the situation with project: (i) investment would consist in asphalting the four road sections from Labé to Médina-Gounass and rehabilitation of the tarred Médina – Gounass – Tombacounda road and (ii) maintenance would comprise routine maintenance of tarred roads and periodic maintenance consisting of the application of a sheet of bituminous concrete every ten years.

7.1.5 With this different data and estimated costs of works and supervision of work exclusive of price contingency, annual routine maintenance costs and periodic maintenance costs give an overall economic rate of return of 14.79% for the entire corridor. For non-tarred sections, the rate of return is 14.63%. These rates exceed the opportunity costs of the capital estimated at 12% and justify the investment.

7.2 Social Impact Analysis

7.2.1 The surveys carried out at the time of program studies show that for 90% of respondents, the road is the top priority of the population of the ZIP. The most expected outcomes are: (i) improvement of the quality of life and living environment of the populations. notably the poor who on the overall represent more half of the labour force of the ZIP (accessibility to the urban health services and structures, improvement of their hygiene conditions ); (ii) improvement of the safety conditions of travellers with the installation of road safety facilities; and (iii) facility of evacuation of the produce.

Impacts on the access to basic social services

7.2.2 Travel by motor vehicle is carried out mainly by bush taxis (50% of total traffic). whose costs are very high compared to the purchasing power of the populations. This situation has led to the widespread use of the two- wheeled vehicles or animals. An analysis of the expenditure structure shows that health and transport charges account for approximately 70% of the annual expenses of an average household of the ZIP. The implementation of the program will allow the annual mobility of approximately 500 000 people. Fast turnaround of the vehicles and fuel saved will have to have a moderating effect on transport tariffs, which could lower the 44 transport price by approximately 10%.. The hygiene and health conditions of approximately 50 000 people resident in the villages which will be supplied with drinking water will improve. The conditions of sale (accessibility and installation of products to be sold) will be also improved for the populations attending the markets of Seriba, Médina Gounass, Sambailo, Kalifourou at the border, and Manda Douanes which will be protected / rehabilitated under the program. In addition, related facilities (rural tracks and connecting roads) will facilitate the access to health services of the chief towns and regions, which will reduce patient evacuation time, in particular in the case of pregnant women

7.2.3 To ensure road user safety, stopping and parking areas (for drivers to rest) are envisaged along the road. Moreover, the publicity campaigns. envisaged under the program. will raise road safety awareness, as well as that of risks of water-borne diseases and STI of which HIV/AIDS. The sensitization activities which will be carried out, inter alia, in the markets, schools and health centres will support the national programs of the two countries. The program will thus contribute to the attainment of the Millennium Development Goals in particular with regard to poverty reduction and maternal and infant mortality.

Impacts on Employment, Incomes and Income-generating Activities

7.2.4 A work force made up road works technicians, semi-skilled workers and labourers will be recruited for the program implementation period envisaged over a maximum period of thirty months. Part of the local currency resources will benefit this labour. These new jobs, which will be created during the works will benefit part of the workforce whether unskilled or semi-skilled, especially youths. Taking into account the foreseeable number of jobs. (approximately 1000 people on the Guinean section and 300 on the Senegalese side); and of the minimum wage (about GNF 175 000 and CFAF 40 000), based on ongoing experience in these countries, it is expected that at least GNF 2 100 million and CFAF 144 million will be distributed annually, in the form of wages to this personnel. The requirements as regards routine and periodic maintenance of rural tracks could create jobs for young people in these domains. The activities of manual road maintenance and the incomes thus distributed could address the gainful employment needs of young people while providing them with work experience.

Impact on Gender

7.2.5 The population of the ZIP is mostly female. Approximately 78.2% of these women have farming and trade as their main occupation. Their ancillary activities relate to stockbreeding (19%), and market gardening (15%). The reduction of transport cost induced by the service level will further boost commercial activity in the ZIP and will strengthen the informal trade sector, which is in full expansion and dominated by women. Women and children are required for carrying crops and water. As water managers within households, the women will enjoy the benefits generated by related installations due to easy access to safe water. The women’s daily water collection chores will be reduced. They will be able to devote time saved to other activities, for instance, elimination of illiteracy, teaching children and handicraft production. The construction of boreholes into water points will contribute in a substantial way to cleanse the project zone, by reducing by 80% the potential vectors of water-borne diseases.

7.2.6 Low-skill jobs constitute opportunities for young people. Petty trade carried out by the women will develop around the project sites. The installation of the new juxtaposed checkpoint at the border of the two countries will offer new maintenance jobs of the premises and restaurants which will benefit the women primarily. These additional resources will help improve their incomes. The women will also benefit from the implementation of the program through transport facility, which will enable rapid sale of farm produce with minimum harvest losses and will improve their incomes, etc the living standards of their households. Lastly, the reduction in transport costs induced by the service level of the road will give a fresh impetus to the commercial activities in the ZIP and will boost the informal trade sector which is in full expansion and dominated by women.

7.3 Sensitivity Analysis

Sensitivity tests conducted on the entire program road show that the average IRRs vary from 13.58% to 12.32% in the most unfavourable cases according to changes in costs (+10%) and benefits (-10%). The program is thus economically justified.

8. CONCLUSIONS AND RECOMMENDATIONS

8.1 Conclusions

8.1.1 The program comprises road and socio-economic infrastructure upgrading works to address the immediate needs of the riparian population as well as transport and transit facilitation measures on the corridor. The implementation of the program will therefore contribute to strengthen cooperation and regional economic integration through the reduction of non-tariff barriers and “invisible” costs. It will permit the development of commercial activities as a result of the savings from the reduction of illicit charges along the corridor. In this regard, it is in keeping with the PACITR of WAEMU. Similarly, the program is in conformity with the objectives of NEPAD and forms part of the NEPAD short-term action plan (STAP)

8.1.2 The program as designed will contribute to poverty reduction, training of stakeholders and transport chain operators. By facilitating mobility of persons and goods and improving the living conditions of the riparian population, it will also contribute to the achievement of the Millennium Development Goals. It also benefited from lessons learnt from the implementation of PR-I of WAEMU which is ongoing.

8.1.3 The program is technically well designed and benefits from detailed studies of the road component. Its negative environmental impacts have been defined and mitigating measures incorporated in the program. It is economically viable and generates an average economic rate of return of 14.79% for the entire corridor, which exceeds the opportunity cost of the capital estimated at 12%. The sustainability of investments is guaranteed thanks to the strengthening of controls of axle-loads and gross weight of vehicles designed for inter-State transport as well as measures envisaged by the two Governments to strengthen road maintenance in their respective countries. The formulation of the program also benefited from lessons learnt from our interventions in the two countries as well as those of other donors especially with regard to procurement procedures, mobilization of counterpart funds, sustainability of investments monitoring of project implementation and consideration of the socio-economic infrastructure for the benefit of the riparian population. 46

8.2 Recommendations

8.2.1 In light of the foregoing, it is recommended that an ADF loan not exceeding UA 20.50 million be awarded to the Republic of Senegal and an ADF grant not exceeding UA 30.32 million be awarded to the Government of Guinea, as well as a grant not exceeding UA 5.58 million to the WAEMU Commission. The loan and grants will be used to implement the program as designed and described in this report. They will be subject to the conditions specified in the Loan Agreement and the Memoranda of Understanding.

Grant to Guinea

A. Conditions Precedent to Effectiveness

8.2.2 The grant to Guinea will be the subject of a Memorandum of Understanding between the Fund and the Donee. The entry into force of this Memorandum shall be subject to its signature by the Donee (Government of Guinea) and the Fund.

B. Conditions Precedent to First Disbursement

8.2.3 The first disbursement of the Grant funds shall be subject to entry in force of the Memorandum of Understanding and fulfilment by the Donee to the satisfaction of the Fund of the following conditions:

i) Provide the Fund with evidence of effective payment by the Republic of Guinea of compensation for expropriation of houses and land (paragraph. 4.6.6)

ii) Provide the Fund with evidence of financing of the program by the other donors or an undertaking by the latter to contribute to the said financing (paragraph 4.8.2).

C. Other Conditions

8.2.4 Furthermore, the Donee shall:

(i) Provide to the Fund, before 31 December 2007 the harmonized instruments relating to standards for, and control of axle loads in ECOWAS countries (paragraph 6.2.2.)

Grant to WAEMU

Memorandum of Understanding

D. Conditions Precedent to Effectiveness

8.2.5 The grant to WAEMU will be the subject of a Memorandum of Understanding between ADF and the Donee. The entry into force of the said Memorandum of Understanding is subject to its signature by the Donee (WAEMU Commission) and the Fund.

E. Conditions Precedent to First Disbursement

8.2.6. The first disbursement of the Grant funds is subject to the entry into force of the Memorandum of Understanding and fulfillment by the Donee to the satisfaction of the Fund of the following condition:

Provide the Fund with evidence of budgeting of the contribution of the WAEMU Commission to the financing of the program for the first year of implementation of the program in 2007 (paragraph 4.8.3)

Loan to Senegal

Loan Agreement

A. Conditions Precedent to Effectiveness

8.2.7 The loan agreement which will be signed between ADF and Senegal will enter into force when the Borrowers have satisfied Section 5.01 of the general conditions applicable to Loan Agreements and Guarantee Agreements.

B. Conditions Precedent to First Disbursement

8.2.8 Besides the entry into force of the Loan Agreement, the first disbursement of the resources of the loan is subject to the fulfilment by the Borrower, to the satisfaction of the Fund, of the following conditions:

(i) Provide the Fund with evidence of the effective compensation of those affected by the program (paragraph 4.6.6); and

(ii) Provide the Fund with evidence of financing of the program by the other donors or an undertaking by the latter to participate in the said financing (paragraph 4.8.2).

ANNEX I

Mauritania Program Map

Legend

Projected road

Senegal Project area

International boundaries State capital

Important town for the project

Guinea Bissau

Guinea

Liberia

This map is furnished by staff of the African Development Bank Group for exclusive use by readers of the report to which it is appended. The names and boundaries shown on the map do not imply on the part of ADB Group and its members. Any opinion concerning the legal status of a territory or an approval or acceptance of its boundaries whatsoever

ANNEX 2 Page 1 of 1

MULTINATIONAL GUINEA / SENEGAL ROAD UPGRADING AND TRANSPORT FACILITATION PROGRAM ON THE CONAKRY – DAKAR CORRIDOR (LABE –MEDINAS GOUNAS – TAMBACOUNDA)

ORGANIZATION CHART

WAEMU COMMISSION ECOWAS REGIONAL FACILITATION COMMITTEE

Other Departments of the Commission Department of Community Regional Ministry of Infrastructure. Land transport Ministry of Public Works and Development Infrastructures. Transport and and Inland maritime Transport Facilities Transport of Guinea Telecommunications (DATc) in Senegal (MIETTTMI

PACITR Steering Committee (SC) ROAD WORKS AUTHORITY (AATR) NATIONAL DIRECTORATE chaired by the DATc and comprised of To monitor the implementation of works FOR ROADS INVESTMENTS representatives of the Commission. in Senegal (DNIR) States. BCEAO. BOAD. ECOWAS and To monitor the implementation donors of works in Guinea

Directorate of Transport and Directorate of Regional Development and National facilitation Committees in Guinea Telecommunications (DTT) of WAEMU Infrastructure (DAI) of WAEMU and Senegal chaired by the Director of Transport

JOINT TECHNICAL COMMITTEE (JTC) Coordinated by DAI and comprising DAI and DTT WAEMU. DNIR. DNT and D. ENV GUINEA. AATR. DTT. DTP and D. ENV SENEGAL

ANNEX 3 Page 1 of 1

MULTINATIONAL GUINEA/SENEGAL LABE-SERIBA-MEDINA GOUNASS ROAD UPGRADING AND CONAKRY-DAKAR CORRIDOR TRANSPORT FACILITATION PROGRAM FINANCING PLAN BY EXPENDITURE CATEGORY AND BY FINANCING SOURCE OF THE ADF PROGRAM (IN MILLION UA)

Categories ADF Loan ADF Grant TRANSPORTERS WAEMU WADB Guinea Govt Senegal Govt Total F C FE LC Total FE LC Total E LC Total FE LC Total FE LC Total FE LC Total FE LC Total FC LC Total

A - Goods 0.00 0.00 0.00 1.99 0.13 2.12 0.13 0.13 0.24 0.24 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.99 0.50 2.49

- Radio communication equipment 0.00 0.00 0.00 1.36 0.05 1.42 0.13 0.13 0.16 0.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.36 0.34 1.71

- Axle-load scales 0.00 0.00 0.00 0.63 0.08 0.71 0.00 0.00 0.08 0.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.63 0.16 0.79

B - Works 14.58 1.45 16.02 22.39 2.53 24.92 0.00 0.00 0.13 0.13 2.48 0.62 3.10 2.93 2.93 2.36 2.36 39.45 10.03 49.47 - Road works. social infrastructures and environment . 14.58 1.45 16.02 21.34 2.40 23.74 0.00 0.00 0.00 0.00 2.48 0.62 3.10 2.93 2.93 2.36 2.36 38.40 9.76 48.16 - Construction of equipped juxtaposed checkpoint 0.00 0.00 0.00 1.05 0.13 1.18 0.00 0.00 0.13 0.13 0.00 0.00 0.00 0.00 0.00 0.00 1.05 0.26 1.31

C – Consultancy services 1.06 0.11 1.17 2.55 0.38 2.93 0.00 0.00 0.05 0.05 0.16 0.04 0.20 0.21 0.21 0.17 0.17 3.77 0.95 4.73

- Control an supervision of works 0.99 0.10 1.09 1.60 0.18 1.78 0.00 0.00 0.02 0.02 0.16 0.04 0.20 0.19 0.19 0.16 0.16 2.75 0.70 3.45 - Studies Radio Comm and juxtaposed checkpoint 0.00 0.00 0.00 0.24 0.03 0.27 0.00 0.00 0.03 0.03 0.00 0.00 0.00 0.00 0.00 0.00 0.24 0.06 0.30

- Surveys. Monitoring and Evaluation 0.00 0.00 0.00 0.21 0.05 0.26 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.21 0.05 0.26

- Sensitization 0.07 0.01 0.08 0.12 0.01 0.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.02 0.01 0.01 0.19 0.05 0.24

- Financial and accounting audit 0.00 0.00 0.00 0.13 0.03 0.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.13 0.03 0.16 - Seminar/Study trip /Sensitization of stakeholders 0.00 0.00 0.00 0.26 0.07 0.33 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.26 0.07 0.33

D - Operation 0.00 0.00 0.00 0.00 0.13 0.13 0.00 0.00 0.08 0.08 0.00 0.00 0.00 0.02 0.02 0.02 0.02 0.00 0.25 0.25

Baseline cost 15.64 1.55 17.19 26.93 3.17 30.11 0.13 0.13 0.50 0.50 2.64 0.66 3.30 3.16 3.16 2.55 2.55 45.21 11.73 56.95

Physical contingencies 1.56 0.16 1.72 2.69 0.32 3.01 0.01 0.01 0.05 0.05 0.26 0.07 0.33 0.32 0.32 0.26 0.26 4.52 1.17 5.69

Price contingency 1.45 0.14 1.59 2.49 0.29 2.79 0.01 0.01 0.05 0.05 0.24 0.06 0.31 0.29 0.29 0.24 0.24 4.18 1.09 5.27

Total excl. expropriations 18.65 1.85 20.50 32.12 3.79 35.90 0.16 0.16 0.59 0.59 3.15 0.79 3.93 3.77 3.77 3.05 3.05 53.92 13.99 67.91

Compensation for expropriations 0.07 0.07 0.04 0.04 0.00 0.11 0.11

ANNEX 5 Page 1 of 1 Labe-Seriba-Medina Gounass Road Construction And Conakry-Dakar Corridor Transport Facilitation Program Implementation schedule

Activities Responsibility/actions Date 1- PRELIMINARY ACTIVITIES Approval of loan and grants ADF November-2006 Signature of loan and grants ADF./WAEMU/Governments Dec-2006 Publication of the General Information Note ADF/Government/WAEMU Jan.-2007 2- SENSITIZATION AND MONITORING AND EVALUATION Biding. approval of tender documents and shortlisting DNIR / AATR / WAEMU / ADF April-2007 Launching of competitive bidding. submission of bids DNIR / AATR / WAEMU / Consultants July 2007 Bid evaluation. approval of successful bidders DNIR / AATR / WAEMU October 2007 Start of sensitization and monitoring and evaluation Consultants Nov-2007 End of sensitization and monitoring and evaluation Consultants August-2010 3- STUDIES RADIO COMMUNICATION AND JUXTAPOSED CHECKPOINT Biding. approval of tender documents and shortlisting WAEMU/ ADF September 2007 Launching of competitive bidding. submission of bids WAEMU / Consultant June 2007 Bid evaluation. approval of successful bidders WAEMU / CTM / ADF September 2007 Start of studies Consultant Oct-2007 End of studies Consultant April-2008 4- RELATED WORKS Biding. approval of tender documents and shortlisting DNIR / AATR / ADF March 2008 Launching of competitive bidding. submission of bids DNIR / AATR / Contractors June 2008 Bid evaluation. approval of successful bidders DNIR / AATR / ADF September 2008 Start of works Contractors Oct-2008 End of related works Contractors April-2010 5- CONTRUCTION OF JUXTAPOSED CHECKPOINT Biding. approval of tender documents and shortlisting WAEMU / ADF April 2008 Launching of competitive bidding. submission of bids WAEMU / ADF / Contractors September 2008 Bid evaluation. approval of successful bidders WAEMU / ADF January 2009 Start of construction of checkpoint Contractors Feb.-2009 End of construction of juxtaposed checkpoint Contractors Feb-2010 6- ROAD WORKS Biding. approval of tender documents and shortlisting DNIR / AATR / ADF June 2007 Launching of competitive bidding. submission of bids DNIR / AATR / Contractors August 2007 Bid evaluation. approval of successful bidders DNIR / AATR / ADF December 2007 Start of ADF road works Contractors Jan.-2008 End of ADF road works Contractors Jan.-2010 Start of other donor’s work Contractors Sept.-2007 End of other donors’ road works Contractors March-2010 7 – SUPPLY AND INSTALLATION OF EQUIPMENT 7.1 Radio Communication Biding. approval of tender documents and shortlisting WAEMU / ADF July 2008 Launching of competitive bidding. submission of bids WAEMU / Suppliers October 2008 Bid evaluation. approval of successful bidders WAEMU / ADF January 2009 Start of supply and installation Suppliers Sept.-2009 End of supply and installation Suppliers Dec.-2010 7.2 Axle load scales Biding. approval of tender documents and shortlisting WAEMU / ADF July 2008 Launching of competitive bidding. submission of bids WAEMU / Suppliers December 2008 Bid evaluation. approval of successful bidders WAEMU / ADF March 2009 Start of supply and installation Suppliers Nov.-2009 End of supply and installation Suppliers Nov.-2010 8- CONTROL AND SUPERVISION OF WORKS Biding. approval of tender documents and shortlisting DNIR / AATR / ADF August 2007 Launching of competitive bidding. submission of bids DNIR / AATR / ADF / Consultants Bid evaluation. approval of successful bidders and signature of contracts DNIR / AATR / ADF Start of ADF works control services Consultant Dec.-2007 End of ADF work control services Consultant March -2010 Start of control of works of other donors Consultants August-2007 End of control of works of other donors Consultants April -2010 9- PROGRAM AUDIT Biding. approval of tender documents and shortlisting WAEMU / ADF November 2007 Launching of competitive bidding. submission of bids WAEMU / Audit firm Bid evaluation. approval of successful bidders and signature of contracts WAEMU / ADF / Audit firm Start of services Audit firm Dec.-2007 End of services Audit firm June-2010 10- PROGRAM MONITORING Putting in place of program officers DNIR/AATR April-2007 Putting in place of Joint Technical Committee WAEMU/Guinea/Senegal April-2007 Start of training and seminars WAEMU / DNIR / AATR May-2008 End of training WAEMU / DNIR / AATR April-2010 Start of program monitoring WAEMU / DNIR / AATR April-2007 End of program monitoring WAEMU / DNIR / AATR / ADF August-2010

ANNEX 6 Page 1 of 4 MULTINATIONAL GUINEA/SENEGAL LABE-SERIBA-MEDINA GOUNASS ROAD UPGRADING AND CONAKRY-DAKAR CORRIDOR TRANSPORT FACILITATION PROGRAM ’ Summary of Economic Analysis

1. Methodology

11. An economic assessment of the program was conducted using the HDM4 model which has the merit of calculating annual vehicle operating costs on the basis of the state of the road surface, which is itself defined on the basis of degradation due to traffic and taking into account the maintenance carried out. The said model therefore made it possible to relate vehicle operating costs to the state of degradation of the road and taking into account related benefits. The parameters required for the model to function were deduced from the technical study and data collection during the appraisal mission.

1.2 The economic rate of return (ERR) and the updated Net Present Value (NPV) have been used to assess the economic viability of the project. These criteria result from the comparison from the standpoint of the community of the vehicle operating costs and benefits. between the situation “without program” (consisting in the maintenance of existing roads keep them at an average service level) and the situation with program (implementation of program). The comparison will cover the 2007-2029 period for road works (road and tracks and social infrastructure) and 2008-2010 for border area works ; ii) the 20-year useful life of the entire road from 2010 (year of commissioning) to 2029 (20th year of operation of the road).

1.3 A copy of the study report as well as the detailed results are among the project implementation documents. The paragraphs below summarize the computation assumptions and the results of the analysis.

2 The economic costs considered are defined as follows:

2.1 Economic Investment Cost

It covers all expenditure relating to: A) road construction and rehabilitation as part of the works proper including environmental protection. works control and supervision. program monitoring and physical contingencies and maintenance costs to ensure sustainability of the effects of the investment. B) related works in respect of border works and rural roads. their control and supervision and physical contingencies.

2.2 Maintenance Cost

(i) Solution ‘without project’ Given the strategic importance of the road, it is considered that maintaining it at its present average service level required interventions covering the following works: *Resurfacing of the earth road sections. every three years. *Regrading of the earth road sections twice a year. *Patching of tarred sections every year. *Miscellaneous routine maintenance (clearing. cleaning of gutters). *Partial use of tarred section of the thickness of the road surface is < 200 mm. *Reconstruction of the tarred sector if the IRR = 12 ;

(ii) Solution ‘with project’ The interventions envisaged on the entire program road cover the following works: * Resurfacing of the roadway with bitumen binder every ten years; *Patching every year. * Miscellaneous routine maintenance (clearing and cleaning of gutters).

3. The quantifiable benefits taken into account in the economic analysis concern:

ANNEX 6 Page 2 of 4 MULTINATIONAL GUINEA/SENEGAL LABE-SERIBA-MEDINA GOUNASS ROAD UPGRADING AND CONAKRY-DAKAR CORRIDOR TRANSPORT FACILITATION PROGRAM

A) Road-related benefits covering:

(a.1) vehicle operating cost savings resulting from the difference between the costs corresponding to the present service level and that corresponding to the proposed road development works;

(a.2) maintenance cost savings resulting from the comparison of requirements estimated by the HDM model. between the present situation and the project situation.

B) Indirect benefits concerning related works. They concern:

(b.1) agricultural value added in the project area generated by increased production as a result of easy marketing. The major food crops taken into account are: groundnuts, rice, fonio, millet, maize and cassava. The agricultural value added calculated on non-tarred road sections has been estimated at € 300 000 per road section.

(b.2) the removal of the ferry on the River Bantala and its replacement by a bridge under the program. resulting in non-eligible time saved and elimination of the operating cost of the present ferry. evaluated at the equivalent of € 30 000.

C) the benefits concerning a 30% drop in double and illicit charges collected on the program road. Indeed, surveys conducted among roadside households, hauliers and economic operators during program studies and discussions during the program appraisal mission show that road charges currently collected by checkpoint goods transport vehicles amount to CFA F 300 000 (that is € 457) per day per heavy vehicle. Such vehicles represent 15% of average daily traffic. The benefits of this substantial drop in illicit charges are evaluated at €1.5 million per year as from 2011, the year of commissioning of the border area works.

4. The economic rate of return and the net present value of the project have been calculated on the basis of the economic costs and benefits below and of a residual value (one of the economic benefits) estimated at 25% of initial investment costs. The table below shows the results of the baseline evaluation.

ANNEX 6 Page 3 of 4 MULTINATIONAL GUINEA/SENEGAL LABE-SERIBA-MEDINA GOUNASS ROAD UPGRADING AND CONAKRY-DAKAR CORRIDOR TRANSPORT FACILITATION PROGRAM Summary of Economic Analysis Discount rate: 12.00 % A ENTIRE PROGRAM (All costs are in million Euros)

Administrative surcharge User cost savings Net benefits Net Non-mot. Total net Year Investment Operation Special mot. VOC mot. time indirect Time + VOC benefits benefits 2007 40.39 -6.51 0.00 -0.21 -0.02 0.00 0.00 -34.11 2008 69.59 -3.56 0.00 -1.05 -0.05 0.01 2.67 -64.44 2009 36.02 -3.58 0.00 0.38 -0.02 0.07 1.91 -30.09 2010 0.00 -3.58 0.00 4.38 0.59 0.08 2.88 11.52 2011 0.00 -3.59 0.00 5.19 0.68 0.10 3.17 12.73 2012 0.00 -6.56 0.00 5.82 0.75 0.12 4.68 17.93 2013 0.00 -3.59 0.00 5.85 0.84 0.14 6.20 16.63 2014 0.00 -3.60 0.00 6.86 0.95 0.16 7.75 19.30 2015 0.00 -3.60 0.00 7.86 1.04 0.17 9.30 21.96 2016 0.00 -3.60 0.00 8.57 1.12 0.17 10.88 24.34 2017 0.00 -6.57 0.00 9.08 1.18 0.18 12.48 29.48 2018 0.00 -3.61 0.00 8.41 1.22 0.18 14.10 27.51 2019 0.00 -3.61 0.00 9.38 1.30 0.18 15.73 30.21 2020 9.42 -3.60 0.00 10.45 1.40 0.19 17.40 23.62 2021 0.00 -3.60 0.00 11.41 1.49 0.20 19.09 35.79 2022 0.00 -6.58 0.00 12.04 1.58 0.21 20.80 41.21 2023 0.00 -3.62 0.00 11.24 1.63 0.21 22.54 39.24 2024 0.00 -3.62 0.00 12.77 1.74 0.22 24.31 42.66 2025 0.00 -3.63 0.00 14.27 1.88 0.22 26.11 46.12 2026 0.00 -3.63 0.00 15.22 2.01 0.23 27.95 49.03 2027 0.00 -6.60 0.00 16.11 2.13 0.23 29.82 54.90 2028 0.00 -0.19 0.00 16.99 2.26 0.24 31.72 51.40 2029 -36.50 -0.20 0.00 19.79 2.58 0.24 33.67 92.97 Total: 118.91 -90.82 0.00 210.80 28.30 3.74 345.16 559.92

IRR = 14.79%

LOT 3 : Boumehoun-Senegalese border

Administrative surcharge User cost savings Net benefits Net indirect Total net Year Investment Operation Special mot. VOC mot. time benefits benefits

2007 8.84 -2.27 0.00 -0.10 -0.01 0.00 -6.68 2008 15.92 -1.22 0.00 -0.49 -0.04 -0.43 -15.66 2009 10.61 -1.22 0.00 -0.49 -0.04 -1.41 -11.34 2010 0.00 -1.22 0.00 0.66 0.12 -1.21 0.79 2011 0.00 -1.22 0.00 0.77 0.14 -1.14 0.99 2012 0.00 -2.27 0.00 0.81 0.14 0.21 3.43 2013 0.00 -1.22 0.00 0.58 0.14 1.56 3.50 2014 0.00 -1.22 0.00 0.70 0.15 2.92 4.98 2015 0.00 -1.22 0.00 0.91 0.16 4.28 6.57 2016 0.00 -1.22 0.00 1.05 0.18 5.64 8.09 2017 0.00 -2.27 0.00 1.13 0.20 7.00 10.60 2018 0.00 -1.22 0.00 0.78 0.19 8.36 10.55 2019 0.00 -1.22 0.00 1.00 0.20 9.73 12.15 2020 0.00 -1.22 0.00 1.30 0.23 11.10 13.85 2021 0.00 -1.22 0.00 1.45 0.26 12.47 15.39 2022 12.59 -2.27 0.00 1.54 0.27 13.85 5.34 2023 0.00 -1.22 0.00 1.13 0.26 15.23 17.83 2024 0.00 -1.22 0.00 1.50 0.29 16.62 19.62 2025 0.00 -1.22 0.00 1.93 0.33 18.00 21.48 2026 0.00 -1.22 0.00 2.10 0.36 19.40 23.08 2027 0.00 -2.27 0.00 2.24 0.39 20.79 25.69 2028 0.00 0.00 0.00 2.38 0.41 22.19 24.99 2029 -8.84 0.00 0.00 3.35 0.55 23.60 36.34 Total: 39.12 -30.84 0.00 26.22 4.87 208.77 231.57

IRR= 16.80%

ANNEX 6 Page 4 of 4 MULTINATIONAL GUINEA/SENEGAL LABE-SERIBA-MEDINA GOUNASS ROAD UPGRADING AND CONAKRY-DAKAR CORRIDOR TRANSPORT FACILITATION PROGRAM LOT 5 : Tambacounda - Médina Gounass

Administrative surcharge User cost savings Net benefits

Non-mot. Net Total net Year Investment Operation Special mot. VOC mot. time Time + indirect benefits VOC benefits

2007 10.37 -0.12 0.00 0.00 0.00 0.00 0.00 -10.26 2008 15.56 -0.14 0.00 0.13 0.01 0.01 0.00 -15.27 2009 0.00 -0.16 0.00 1.86 0.05 0.09 0.00 2.16 2010 0.00 -0.17 0.00 2.47 0.10 0.10 0.75 3.60 2011 0.00 -0.18 0.00 3.08 0.16 0.12 0.80 4.34 2012 0.00 -0.18 0.00 3.74 0.24 0.15 0.86 5.17 2013 0.00 -0.18 0.00 4.49 0.32 0.17 0.92 6.09 2014 0.00 -0.19 0.00 5.19 0.40 0.19 0.98 6.96 2015 0.00 -0.19 0.00 5.68 0.45 0.21 1.05 7.58 2016 0.00 -0.19 0.00 6.02 0.48 0.21 1.13 8.04 2017 0.00 -0.20 0.00 6.27 0.51 0.22 1.20 8.40 2018 0.00 -0.20 0.00 6.53 0.53 0.22 1.29 8.77 2019 0.00 -0.20 0.00 6.79 0.55 0.23 1.38 9.15 2020 9.42 -0.21 0.00 7.05 0.57 0.23 1.48 0.12 2021 0.00 -0.21 0.00 7.58 0.60 0.25 1.58 10.22 2022 0.00 -0.21 0.00 7.90 0.63 0.26 1.69 10.69 2023 0.00 -0.22 0.00 8.24 0.65 0.27 1.81 11.18 2024 0.00 -0.22 0.00 8.58 0.68 0.27 1.93 11.69 2025 0.00 -0.23 0.00 8.94 0.71 0.28 2.07 12.23 2026 0.00 -0.23 0.00 9.31 0.74 0.28 2.21 12.78 2027 0.00 -0.23 0.00 9.69 0.77 0.29 2.37 13.36 2028 0.00 -0.24 0.00 10.07 0.81 0.30 2.53 13.95 2029 -6.48 -0.24 0.00 10.46 0.84 0.30 2.71 21.05 Total: 28.87 -4.53 0.00 140.09 10.82 4.67 30.75 162

IRR = 20.11%

1. To test the solidity of the updated baseline results of the economic rate of return and benefits. a sensitivity analysis and critical values of the three key variables was conducted, namely: a) an increase in investment costs (case 1). b) reduction in economic benefits (case 2). and c) combination of both cases, increased costs and reduced economic benefits (case 3). The results summarized in the table below confirm the viability of the investments.

SENSITIVITY ANALYSIS

Lot 3: Bouméhoum-Senegalese border Lot 5: Tambacounda-Médina Gounass All road sections of the program

Case 1 Case 2 Case 3 Case 4 Case 1 Case 2 Case 3 Case 4 Case 1 Case 2 Case 3 Case 4

Discount rate (%) 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 Multiplier factor for net benefits

*Investment and recurrent costs 1.00 1.10 1.00 1.10 1.00 1.10 1.00 1.10 1.00 1.10 1.00 1.10 * Vehicle operation 1.00 1.00 0.90 0.90 1.00 1.00 0.90 0.90 1.00 1.00 0.90 0.90 ------

Updated benefits (million Euros) 232 228 205 201 162 159 143 140 560 548 492 480 16.80 15.74 15.63 14.06 20.11 18.64 18.49 14.79 13.58 13.46 IRR (%) % % % % % % % 17% % % % 12.32%

ANNEX 7 Page 1 of 2 MULTINATIONAL GUINEA/SENEGAL LABE-SERIBA-MEDINA GOUNASS ROAD UPGRADING AND CONAKRY-DAKAR CORRIDOR TRANSPORT FACILITATION PROGRAM List of Bank Commitments in Guinea

Deadline Signature Effectiveness Amount Amount Disbursement Project Approval date end of date date approved disbursed rate % disbursement Agriculture sector 1. UPPER GUINEA DEVELOPMENT PROJECT 06/15/2000 08/18/2000 06/29/2001 12/31/2007 10 000 000.00 4 908 581.81 49.1 2. FOUTA DJALLON RUR DEVT PROJECT 02/07/2005 490 000.00 0 0 3. UPPER GUINEA VILLAGE WATER SUPPLY PROJECT 09/04/2002 12/09/2002 06/27/2003 12/31/2008 15 000 000.00 2 385 841.64 15.9 4. RURAL ROADS PROJECT/PNIR 10/02/2002 01/16/2003 03/22/2004 12/31/2008 8 100 000.00 278 888.06 3.4 5. ARTISANAL FISHING AND AQUACULTURE PROJECT 06/07/2000 08/18/2000 11/25/2000 12/31/2006 5 000 000.00 2 902 658.44 58.1 6. NERICA DISSEMINATION PROJECT - GUINEA 09/26/2003 02/13/2004 02/05/2005 12/31/2010 3 000 000.00 116 672.12 3.9 Total Agriculture 41 590 000.00 10 592 642.07 25.5 Transport sector 1. REAMENAG.A 2X2 VOIES TOMBO-AIRPORT.BESSIA 07/13/2005 07/22/2005 07/22/2005 12/31/2010 8 250 000.00 0 0 Total Transport 8 250 000.00 0 0 Public amenities sector 1. STUDY RURAL ELECTRIFICATION PROGRAM 09/11/2002 10/15/2002 09/01/2003 12/31/2006 1 350 260.00 728 971.79 54 2. STUDY DWSS PROGRAM 05/10/2006 06/05/2006 12/31/2007 1 000 000.00 0 0 Total public amenities 2 350 260.00 728 971.79 31 Social sector 1. WOMEN’S ECONOMIC ACTIVITIES SUPPORT PROJECT 11/27/1997 01/22/1998 03/29/1999 12/31/2006 3 000 000.00 1 093 503.48 36.5 2. UPPER & MIDDLE GUINEA SUSTAINABLE SOCIAL DEVT PROJ. 12/05/2001 12/07/2001 05/28/2002 12/31/2008 20 000 000.00 2 673 527.08 13.4 3. EDUCATION IV 07/13/2005 07/22/2005 07/22/2205 12/31/2011 14 000 000.00 22 014.78 0.2 4. HEALTH III 10/04/2000 12/01/2000 09/27/2001 12/31/2007 6 500 000.00 3 834 459.25 59 5. HEALTH III 10/04/2000 12/01/2000 09/27/2001 12/31/2007 600 000.00 504 470.84 84.1 Total Social sector 44 100 000.00 8 127 975.43 18.4 Multisector 1. CAPACITY BUILDING SUPPORT PROJECT 07/26/2006 2 500 000.00 0 0 Total multisector 2 500 000.00 0 0 Grand Total 98 790 260.00 19 449 589.29 19.7

ANNEX 7 Page 2 of 2 MULTINATIONAL GUINEA/SENEGAL LABE-SERIBA-MEDINA GOUNASS ROAD UPGRADING AND CONAKRY-DAKAR CORRIDOR TRANSPORT FACILITATION PROGRAM List of Bank Commitments in Senegal as at 7 August 2006 Approval Signature Effective Deadline Amount Amount Disbursement Project date date ness date end of approved disbursed rate % disbursement Agriculture sector 1. CASAMANCE DEVT PROJECT 19/10/2005 11/11/2005 22/03/2006 21/12/2012 20 000 000.00 0.00 0.0 2. LIVESTOCK II PROJECT 05/17/2000 07/14/2000 02/01/2002 12/31/2007 10 000 000.00 7 704 368.18 77.0 3. ANAMBE DEVT SUPPORT PROJECT 04/25/2001 10/26/2001 07/11/2002 12/31/2008 7 180 000.00 2 684 156.28 37.4 4. RURAL INFRASTRUCTURE PROJECT 04/03/2002 05/06/2002 02/04/2003 12/31/2006 11 852 000.00 7 749 198.00 65.4 5. SMALL-SCALE IRRIGATION SUPPORT PROJECT 10/22/2003 18/12/2003 07/09/2004 31/12/2010 14 310 000.00 206 268.19 1.4 6. LIVESTOCK DEVT STUDY 11/05/2003 19/12/2003 19/12/2003 31/12/2006 794 420.00 0.00 0.0 Total Agriculture 64 136 420.00 19 369 441.00 30.2 Transport sector 1. DIAM NADJO-MBO ROAD 07/12/2001 10/26/2001 15/02/2002 12/31/2005 15 000 000.00 14 324 976.73 95.5 2. ROAD MAINTENANCE PROJECT 29/06/2005 20/07/2005 21/06/2006 31/12/2009 29 000 000.00 0.00 0.0 Total Transport 44 000 000.00 14 324 976.73 32.6 Public amenities sector 1. DAKAR SANITATION PROJECT 07/12/2001 10/26/2001 12/29/2002 12/31/2006 11 930 000.00 409 865.61 3.4 2. RURAL ELECTRIFICATION PROJECT 13/10/2004 29/11/2004 31/12/2010 9 580 000.00 0.00 0.0 3. RURAL WATER INITIATIVE PROJECT 21/09/2005 26/10/2005 23/01/2006 31/12/2011 25 000 000.00 0.00 0.0 Total public amenities 46 510 000.00 409 865.61 0.9 Social sector 1. SUPPORT TO DEV. OF BASIC EDUC. & MID-SCHOOL/SEC. EDUC. 09/13/1999 10/07/1999 03/03/2001 31/12/2005 11 500 000.00 6 547 656.92 56.9 1. SUPPORT TO DEV. OF BASIC EDUC. & MID-SCHOOL/SEC. EDUC. 09/13/1999 10/07/1999 03/03/2001 31/12/2005 1 500 000.00 704 259.28 47.0 2. POVERTY REDUCTION 06/30/1999 08/19/1999 04/06/2001 30/06/2006 10 000 000.00 9 997 896.04 100.0 2. POVERTY REDUCTION 06/30/1999 08/19/1999 08/19/2001 30/06/2006 1 750 000.00 1 749 821.14 100.0 3. EDUCATION IV 06/25/2003 07/21/2003 15/10/2004 31/12/2009 13 840 000.00 623 651.08 4.5 3. EDUCATION IV 06/25/2003 07/21/2003 15/10/2004 31/12/2009 1 000 000.00 294 823.66 29.5 4. HEALTH II 06/18/2003 07/21/2003 22/04/2004 12/31/2009 10 000 000.00 762 834.91 7.6 4. HEALTH II (grant) 06/18/2003 07/21/2003 22/04/2004 12/31/2009 1 350 000.00 0.00 0.0 Total social sector 50 940 000.00 20 680 943.03 40.6 Multisector 1. support to the directorate for forecasts and statistics 12/12/2002 02/07/2003 05/07/2003 12/31/2007 1 550 000.00 146 864.00 9.5 2. private sector adjustment support program 12/10/2003 01/16/2004 08/07/2004 12/31/2005 24 000 000.00 12 000 000.00 50.0 3. CADASTRAL MODERNIZATION PROJECT 22/04/2005 17/05/2005 12/08/2005 31/12/2009 2 500 000.00 108 557.58 4.4 Total multisector 28 050 000.00 12 255 421.58 43.7 Grand Total 233 636 420.00 61 700 164.00 26.4

ANNEX 8 Page 1 of 1 MULTINATIONAL GUINEA/SENEGAL LABE-SERIBA-MEDINA GOUNASS ROAD UPGRADING AND CONAKRY-DAKAR CORRIDOR TRANSPORT FACILITATION PROGRAM LIST OF RELATED WORKS

Unit cost in CFAF Total Cost in CFAF Total Cost in Country Department Type of infrastructure Description Unit Qty or GNF or GNF million CFAF ADF=Govt FKDA+Govt SENEGAL Tambacounda Track Madina Sibikili - Nétéboulou Km 20 18 000 000 360 000 000 360.00 360.00 0.00 Gouloumbou - Khouar Km 35 18 000 000 630 000 000 630.00 630.00 0.00 Saré Dela (Hèremankono 1) - Kourientine Km 17 15 000 000 255 000 000 255.00 255.00 0.00 Manda Douanes - Daru Salam Km 13 15 000 000 195 000 000 195.00 195.00 0.00 Medina Pakane - Béarou Km 23 15 000 000 345 000 000 345.00 345.00 Samaye - Akane - Tonguiya Km 13 15 000 000 195 000 000 195.00 195.00 Total tracks 121 1 980 000 000 1 980.00 1 440.00 540.00 Fences or latrines for primary schools in Gouloumbou. Médina Gounass. Darou Salam Manda. Médina Pakane. Missira Tamba. Hafia Mbemba and Social infrastructures Demba Niama U 7 7 200 000 50 400 000 50.40 Total Social Infras. 50 400 000 50.40 Trading infrastructures Manda Douanes (market) U 1 83 000 000 83 000 000 83.00 Daru Salam/ Manda Douanes (motor park) U 1 164 000 000 164 000 000 164.00 Total Trading Infras. 2 247 000 000 247.00 Boreholes and water points Gouloumbou U 1 40 000 000 40 000 000 40.00 Kalifourou U 1 40 000 000 40 000 000 40.00 Medina Gounass U 1 40 000 000 40 000 000 40.00 Total Boreholes 3 120 000 000 120.00

Total Senegal 2 397 400 000 2 397 GUINEA Tracks Access to Touba Km 15 69 700 054 1 045 500 812 112.90 Access to Saréboïdo 28 62 932 807 1 762 118 600 190.28 Access to Youkounkoun 26 37 410 031 972 660 816 105.03 Total tracks 69 3 780 280 228 408.21 School fences (Sériba. Kifaya. Bouméhoun. Social infrastructures Sambaïlo. Boundoufourdou) U 5 140 000 000 700 000 000 75.59 Koundara (Fences govt sec. school. practising school and school centre 2) U 3 144 666 667 434 000 000 15.62 Rehabilitation of classrooms (Bouméhoun and Boundoufourdou) U 4 40 000 000 160 000 000 17.28 Total Social Infras. 12 1 294 000 000 108.49

Trading infrastructures Market halls (20x15 m²) Sériba. Kifaya and Sambaïlo U 3 199 490 000 598 470 000 64.63 Total Trading Infras. 598 470 000 64.63 Boreholes and water points Boreholes at Sériba. Kifaya. Sambaïalo and Touba U 4 70 000 000 280 000 000 30.24 Total boreholes 280 000 000 30.24

Total Guinea 5 952 750 228 611.56

ANNEX 9 Page 1 of 2

MULTINATIONAL GUINEA/SENEGAL LABE-SERIBA-MEDINA GOUNASS ROAD UPGRADING AND CONAKRY-DAKAR CORRIDOR TRANSPORT FACILITATION PROGRAM LIST OF DOCUMENTS FOR PROGRAM IMPLEMENTATION

- Portfolio Review in Senegal by the World Bank on the PST2. may 2002;

- Aide-memoire of the supervision mission of the PST2 of IDA. provisional version. June 2002;

- Evaluation of the financial and accounting management of the road fund in Senegal. July 98;

- Programme of facilitation and harmonization of the administrative harbour transit procedures within the WAEMU Commission; June 2002

- WAEMU/Ghana: Road Programme 1. Appraisal report. ADF

- ECOWAS/WAEMU: Study of the legal status of the corridors and the juxtaposed checkpoints at the borders. Sandra Corteze. 2005

- Report of proposals for a harmonized system of guarantee of the Inter-State Road Transit operations (TRIE) in the ECOWAS zone. Ahmed. M. BOILIL. July 2005

- Feasibility study for the Establishment of the Road Monitoring System (SIAM) in West Africa. UNCTAD FINAL REPORT July 2005

- Short-term Action Plan of NEPAD (STAP) updated in 2004. ADB

- Programme of road infrastructures and transport of the Member State of WAEMU (Programme of Community Actions and Community Strategy - PACTIR. WAEMU. September 2001

- Draft instruments validated in October 2005 by the technical Ministries of WAEMU States concerning: (i) the directive on the reduction of check points on WAEMU inter-State highways with the plan of controls on these highways (ii) the regulation on axle load. and (iii) Decision on the creation, organization and functioning of the Technical Monitoring Committee for the removal of the non-tariff barriers.

- Reports of the technical feasibility studies of the Labé – Sériba – Médina Gounass – Tambacounda road.

- Reports of the socio-economic and environmental studies of the Labé – Sériba – M2dina Gounass – Tambacounda road.

- Reports of the detailed design of the Labé – Sériba – Médina Gounass - Tambacounda road.

ANNEX 9 Page 2 of 2

MULTINATIONAL GUINEE/SENEGAL LABE-SERIBA-MEDINA GOUNASS ROAD UPGRADING AND CONAKRY-DAKAR CORRIDOR TRANSPORT FACILITATION PROGRAM Program Preparation Schedule

Activities Structures consulted during missions

Round-table conference of Ministry of the Economy and Finance of Guinea Donors in Guinea Ministry of Public Works of Guinea (November 2005) World Bank. European Union. AFD (French devt agency). IDB. ABEDA. KFEDA. SDF Preparation mission: Governmental (March/April 2006) In Senegal - Ministry of the Economy and Finance - Ministry of Infrastructures. Equipment. Land Transports and Inland Maritime Transports. - Ministry in charge of the Environment

In Guinea - Ministry of the Economy and Finance - Ministry of Public Works - Ministry of the Environment Donors In Senegal - WB. EU. BOAD. AFD

In Guinea - WB. EU. AFD

Beneficiary populations

Women’s groups. transporters’ trade unions. farmers’ groups. shippers’ associations (- Governmental In Senegal - Ministry of the Economy and Finance - Ministry of Infrastructures. Equipment. Land Transports and Inland Maritime Transports. - Ministry in charge of the Environment

In Guinea - Ministry of the Economy and Finance - Ministry of Public Works - Ministry of the Environment Donors In Senegal - WB. EU. BOAD In Guinea - WB. EU. AFD. Japanese Cooperation. German Cooperation