Document of The World Bank
FOR OFFICIAL USL ONLY
C:3Z 7 61-7LI v ,7
Public Disclosure Authorized Report No. 8070-GUB
STAFF APPRAISAL REPORT
REPUBLIC OF GUINEA BISSAU Public Disclosure Authorized
INFRASTRUCTURE REHABILITATION PROJECT
NOVEMBER 6, 1989 Public Disclosure Authorized
Infrastructure Operations Division Western Africa Department Public Disclosure Authorized
Thisdocument has a resticted distribution and may be used by recipients only in theperfornance of their officlia duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCYEQUIVALENTS (As of December 1989) Currency Unit G Peso US$1.0 = G Pesos 2,600 Pesos 1 Million US$385 US$1.0 = SDR 1.27572 SDR1.0 US$ 0.78387 MEASURES
lkm = 0.62 sq mc lm 1.09 yd lsq km = 0.38 sq. mile lha = 2.47 acres it = 2.2 lbs 11 = 0.26 gal ABBREVIATIONS AND A.CRONYMS AfDB African Development Bank ASTRA Association of Private Transporters BNG National Bank of Guinea Bissau CENFA Center for Administration Training CENFI Center for Industrial Training DGEP General Directorate of Roads and Bridges DGHU General Directorate of Housing and Urban Affairs DGMP General Directorate of Marine DGTT General Directorate of Transport DICOL National Petroleum Company EAGB Electricity and Water Company EAS Europe Aero Service EDF European Development Fund ERR Economic Rate of Return FAC French Cooperation Fund FIRR Financial Internal Rate of Return GEP/OP Studies and Planning Office/Public Works GEP/T Studies and Planning Office/Transport GUINAVE State-owned Naval Repair Company HDM Highway Design and Maintenance Model HRPM Human Resource Management and Planning Section IDB Islamic Development Bank JAPG Port Authority KF Kuwait Fund LEGUI Engineering Laboratory LNEC Portuguese National Laboratory of Civil Engineering MES Ministry of Social Infrastructure MOF Ministry of Finance MP Ministry of Plan OPEC Organization of Petroleum Export Countries PCU Project Coordination Unit in MES RF Road Fund RODOFLUVIAL Public Trucking and River Transport Company SET State Secretariat of Transport SF Saud4 Fund SILO DIATA Public Bus Company SIRP Social and Infrastructure Relief Project TAGB National Airline Company TC Public (State-owned) transport company TCU Transport Coordination Unit in SET TO Technical Office 4n MES UNDP United Nations Development Programme UNCDF United Nations Capital Development Fund FISCAL YEAR January 1 - December 31 REPUBLIC OF GUINE. BISSAU
INFRAS9tUCTURE REHABILITATION PROJECT
TABLE OF CONTENTS
Page No.
CREDIT AND PROJEC. SUMMARY ...... i-iii
I. INTRODUCTION AND RATIONALE FOR IDA INVOLVEMENT ...... 1
II. THE INFRASTRUCTURE SECTORS ...... 1
A. The Infrastructure System ...... 1 B. Transport and Urban Administration ...... 2 C. Road Infrastructure ...... 4 D. Road Transport ...... 4 E. River Infrastructure and Services ...... 5 F. Maritime Ports and Shipping ...... 6 G. Airports and Civ.l Aviation ...... 6 H. The Urban Setting ...... 7 I. Private Sector Participation ...... 8 J. Manpower and Training ...... 9 K. Sector Planning, Accounting and Cost Recovery ...... 10 L. Sector Issues and Strategy ...... 13 M. Bank Group Involvement in the Infrastructure Sectors .. 13
III. THE PROJECT ...... 15
A. Project Background and Objectives ...... 15 B. Project Description ...... 15 C. Institutional Support ...... 17 D. Transport Companies ...... 18 E. Road Infrastructure ...... 19 F. Urban Program ...... 19 G. Project Preparation Facility (PPF) Advance .20 H. Project Cost Estimates and Financing ...... 20 I. Implementation and Present Status of the Project 23 J. Procurement .23 K. Disbursements .24 L. Reporting and Auditing .26 M. Environmental Impact .26
This report is based on the findings of an appraisal mission which visited Guinea-Bissau in November 1988. The appraisal team consisted of Messrs. Peter Morris (Mission Leader, Principal Transport Engineer), Cesar Queiroz (Sr. Highway Engineer), Jorge Rebelo (Sr. Transport Planner), Felix Jakob (Sr. Urban Planner), Stephen Berkman (Training Specialist), Jose Aleluia (Financial Analyst, Consultant) and Lubomir Dunin (Urban Planner, Consultant), Mmes. Anita Artaza and Judith Silvera (Operations Assistants), M.L. Moreira and Hanni Najar (Staff Assistants), in particular, assisted in preparing the report.
1 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not ot.serwise be disclosed without World Bank authorization. IV. FINANCIAL EVALUATION ...... 27
A. RODOFLUVIAL ...... 27 B. SILO DATA ...... 29 C. JAPG .31 D. TAGB ...... 33
V. ECONOMIC EVALUATION .34
A. Economic Returns .34 B. Project Risks .35
VI. AGREEMENTS REACHED ANT)RECOMMENDATION . .36
AZNEXES
2-. Transport Policy - Summary of Key Principles 2-2 Status of the Road Network in 1987 2-3 JAPG: Port of Bissau Traffic in 1986 and 1987 2-4 1990-92 Infrastructure Sectors Investment Program 2-5 Road Tolls, Structure of Fuel Prices, Evolution of the Fleet, Annual Registration of Vehicles, Annual Fuel Consumption, Road Fund Administration Costs and Road F-md Revenues (1989-1993) 3-1 Organizational Charts: MES Coordination of the Project; PCU 3-2 Assistance to MES' Engineering Laboratory (LEGUT) 3-3 Budget Estimates fot Training 3-4 Road Infrastructure Program 3-5 Pilot Feeder Roads Program 3-6 Urban Program 3-7 Cost Estimates and Financing Plan 3-8 Outline of Participation Agreements with TCs 3-9 Implementation Schedule 3-10 Estimated Disbursement Schedule 3-11 Survey for Resettlement of Occupants on Housing Plots 5-1 Economic Evaluation of the Road Infrastructure Program 5-2 Economic Rate of Return of the Overall Investment Package 6-1 Documents in Project File
MAP: IBRD 21464 REPUBLIC OF GUINEA BISSAU
INFRASTRUCTUREREHAEILITATION PROJECT
CREDIT AND PROJECT SUMMARY
Borrower: The Republic of Guinea Bissau
Beneficiaries: Ministry of Social Infrastructure (MES); State Secretariat of Transport (SET); Municipality of Bissau.
Implementing Agency: MES
Credit Amount: SDR 18.5 million (US$23.6 million equivalent).
Credit Terms: Standard, with 40 years maturity.
ProJect Description: The project covers a five-year program to support (a) efforts of the Ministry of Social Infrastructure and its State Secretariat of Transport to strengthen planning and management of transport and urban projects, monitor performance of public transport companies, and manage training programs and sector studies; (b) assistance to improve performance of the public transport companies, including private participation in the companies; (c) road infrastructure rehabilitation and maintenance, including improvement of feeder roads particularly in the South, and training of domestic contractors in labor- based road works; and (d) urban programs including solid waste collection in Bissau, development of urban services, and sites and services for housing plots in Bissau and other centers. - ii -
Proiect Benefits and Risks: The project would provide the following benefits: (a) in the transport sector - consolidate efforts to escablish sound and efficient infrastructure maintenance capacity, remove bottlenecks to increasing agricultural production, especially in the South, improve the efficiency and cost effectizeness of public trausport companies and encourage greater private sector participation in transportation; (b) in the urban sector - improve municipal services in Bissau and other centers, expand solid waste collection in Bissau to the suburbs, and expand on the sites and services operation, initiated under the Social and Infrastructure Relief Project, in order to more fully address the need for low cost housing; and (c) implement a comprehensive training program for managers, and skilled and semi-skilled personnel, in both the private and public sectors which are needed for Guinea Bissau to manage and operate the infrastructure sectors.
The main risks are: (a) non-compliance with the transport policy; (b) Government reluctance to facilitate private sector participation in works and transportation; and (c) delays in implementation due to constraints in the absorptive capacity of MES. The Government, however, has given its commitment to the implementation of the transport policy and has agreed to measures to select and fund infrastructure projects with emphasis on rehabilitation and maintenance programs. Furthermore, detailed action plans will be prepared for private participation in each of the public transport companies. The establishment of a Project Coordination Unit in MES and a Transport Coordination Unit in SET will ensure that the project is well managed and that performance of public transport companies are constantly monitored.
Economic Rate of The estimated overall ERR for the project, Return (ERR): based on quantifiable benefits covering about 72 percent of overall cost, is about 48 percent.
Map: IBRD No. 21464 - iii -
Summary of Project Cost Estimates
Estimated Costs: Local Foreign Total ------US$ thousand ------
A. Institutional Support 658.6 6,336.4 6,995.0
B. Transport Companies 78.6 2,792.4 2,871.0
C. Road Infrastructure Program 2,555.6 13,393.2 15,948.8
D. Urbar. Program 447.8 1,512.2 1,960.0
E. Road Maintenance Operations 3,176.0 4,764.0 7,910.0
Base Cost (December 1989) 6,916.6 28,798.2 35,714.8
Physical Contingencies 301.0 1,672.2 1,973.2 Price Contingencies 1,784.1 3,823.5 5,607.6
Total Project Cost 1/ 9,001.7 34,293.9 43,295.6
Financing Plan: 2/ Local Foreign Total ------US$ million ------
IDA 2.5 21.1 23.6 Co-financiers 1.7 13.2 14.3 Government 4.8 - 4.8
Total 9.0 34.3 43.3
Estimated IDA Disbursements:
IDA Fiscal Year: FY90 FY91 FY92 FY93 FY94 FY95 FY96
Annual 3.5 5.3 5.3 4.0 3.0 1.8 0.7 Cumulative 3.5 8.8 14.1 18.1 21.1 22.9 23.6
1/ Project items are exempt from all taxes and duties except for a small amount from local contracts for civil and building works.
2/ Amounts are rounded. REPUBLIC OF GUINEA BISSAU
INFRASTRUCTUREREHABILITATION PROJECT
I. INTRODUCTION AND RATIONALE I-OR IDA INVOLVEHENT
.L.01 The Gevernmentof Guinea Bissau has requestedIDA's assistancein financing part of its five-year (1990-94) infrastructurerehabilitation program. The project will support the efforts of the Ministry of Social Infrastructure(MES) and its State Secretariatof Transport (SET) in (a) carrying out road rehabilitation and maintenance, and feeder road improvementsin priorityagricultural areas, (b) developingrational programs for servicing plots for low-costhousing, (c) improvingmunicipal services in Bissau, and (d) assisting public transport companies in becoming financially viable concerns. In particular, the project supports a comprehensiveinstitutional building and trainingeffort in the transportand urban sectors, as well as assistanceto domestic contractorsto enable ther participationin labor-based road maintenance activities and feeder road works.
1.02 IDA's strategy in the transportsector has focused on modernizing the port of Bissau, completing the basic network of river ports and ramps, as well as developing the country's road maintenance capability. Also, a Social and InfrastructureRelief Project (SIRP), (Cr. 2020-GUB approved in May 1989), will tackle the immediateneeds for repairing infrastructurein urban areas using labor available from civil service retrenchment, and addressing the housing shortage in Bissau, as well as education and health components. Emphasis has been given to building up institutionalcapacity to manage the transportinfrastructure despite an acute shortage of skilled personnel. IDA's support of the project is crucial to consolidatethese initiativesand to assist MES/SET in developing sustainabletransport and infrastructure management systems, and to institute sound planning procedures, as well as to increase participationof the private sector in road works and transportation. Training of professionals,accountants and technical personnel will be intensified under the project to provide sufficient expertise to manage and operate the transportmodes and urban infrastructure.But the task will take many more years for Guineansto reach adequate and sustainablelevels of proficiency. Furthermore,IDA's support of the project will intensify the policy dialogue on road maintenance financing,municipal revenues, transportationregulations and tariffs, and investmentplanning for the transportand urban sectors and will (a) enable more rationaluse of scarce local funds, (b) improve the cost effecti'seness of urban and transport services, and (c) help enlist the support of internationalfinancing agencies towardshigh priority sector projects.
II. THE INFRASTRUCTURESECTORS
A. The InfrastructureSystem
2.01 Guinea Bissau, with a land area of 36,125 sq km, including some 30 islands forming the Bijagos archipelago,is a small country on the West African Coast. It is surroundedby Senegal on the North, Guinea (Conakry) on the East and South, and the Atlantic Ocean on the West. With an estimated -2-
GNP per capita of US$160, the country is among the poorest nations in the world. The econc-.,is characterizedby a large traditionalrural sector, producingprimarily for self-consumption,that accounts for about 90 percent of employment and half of total exports, of which 70 percent are cashew products. Rice is the main food crop and production has increased from 85,000 tons in 1983 to about 140,000 tons in 1987.
2.02 The populationliving in Guinea-Bissau'scenters of 5,000 and more it4habitantsis currentlyestimated at some 220,000, or about 23 percent of the country's total populationof around 950,000. About 70 percent of this urban population and, thus, almost one-sixth of the total population is concentratedin Bissau, the capital city, which has an estimated 150,000 inhabitants. Two or three secondary centers have populations of around 20,000, and only four or five other towns have more than 5,000 inhabitants. The existing urban infrastructure,in particular streets,water supply and drainage networks, is deterioratingbecause of an almost total lack of maintenance. Conditionsin Bissau have become particLlarlycritical because most neighborhoodsoutside the downtown area lack even basic infrastructure and, in m..iycases, are inaccessibleto motor vehicles.
2.03 Guinea-Bissau'stransport infrastructurecomprises 2,636 km of roads; a deep water port, 27 small coastal and river ports; an international airport and 17 domestic aerodromes. The country has no railway. Road and river transport take an equal share of the domestic freight traffic; air transport is negligible. State-owned (public) transport companies (TCs) comprise Transportes Aereos da Guine-Bissau (TAGB), the natioral airline which handles normally about 25 percent of the internationalpassenger trafficand all domestictraffic, although it remainedgrounded from mid-1986 to the end of 1987 for lack of spare parts; RODOFLUVIALwhich took over road and river freight transportfrom the two previouslyexisiting public trading companies (ARMAZENSDO POVO and SOCOMIN) and passenger river transportfrom the national shippingagency (GUINEHAR);and SILO DIATA, the state-ownedbus company which was reorganizedin 1985, but has few buses running because of inadequateworkshop equipmentand spare part shortages. Despite the presence of these TCs, the private sector has a significant share of the overall mprket, particulariyin road passengerand freight transport. The transport system, with related statistics on infrastructure,vehicles, traffic and pricing, has been describedin detail in a TransportSector Memorandum (TSM, Report No. 7076-GUB)which was discussedwith the GovernmentiI' January1987. Subsequently,the Governmenthas prepared a Transport Policy which focuses on the country'smain transportproblems and policy issues, and presents a strategy for tackling them over the short and medium term. Tnis strategy is supported by the project (paras 2.35 and 2.36). During negotiations the Governmentconfirmed its intentionto implementthe TransportPolicy. Annex 2-1 summarizeskey principlesof the TransportPolicy.
B. Transportand Urban Administration
2.04 At the institutionallevel, management capability in the transport and urban sectors remainsweak; most entities aze faced with over-staffing at lower skill levels, low salary scales,and consequentlypoor discipline. Lack of skilled personnel for infrastructureand transport operations and maintenance is pervasivein government,transport companies and the private -3. sector. Furthermore, material resources remain a scarce commodity and transportmeans are inadequate.
2.05 The MES is responsiblefor transportand infrastructureplanning and policy formulation. The internal organizationand procedures of the Ministry have been redefined,but are not yet fully implemented,mainly because of a shortage of middle-to-senior level staff with adequate experience. Its General Directorateof Roads and Bridges (DGEP)deals with all road-relatedmatters and comprises directoratesof Road Maintenance, Personneland Finance,Equipment, and three provincialunits, of which only the one is presently operational. DGEP which executes road works under to Second Roads Project, (Cr. 1473-GUB,approved in May 1984), has managed operate satisfactorily,mainly because of the considerable technical assistanceat various levels. The General Directorateof Housing and Urban Affairs (DGHU)has four directorates:Urban Planning,Housing, Surveying and Construction;virtually all these departmentsare only embryonicand have, aside from the directors, only few other professionalstaff. LEGUI, the soils and materials laboratoryunder MES was created in 1985, but is still not equipped to undertakenormal soils and materials testing, or research studies. The GeneralSecretary of MES, who has the responsibilityto prepare and defend the budget allocationsof the Ministry,and to delegate credits and to th' various technicaldirectorates, does not have the organization staff to be effective. The Road Fund (RF) under MES has adequate administrativecapability; part of the gasolineconsumption taxes, duties and tolls are used exclusivelyfor funding road works and maintenance (para 2.30).
2.06 The SET under MES is responsiblefor coordinatingtransport plans in which may be elaboratedat MES or at other ministries,particularly those charge of agriculture and industry where project viability is greatly affectedby transportconstraints. SET also supervisesthe TCs. Due to the one limitednumber of professionalsin SE"'s staff (basically2 jurists and accountant), none of these important functions have been performed effectivelyin the past, althoughtechnical assistance under the SecondRoads and duringpreparation of the project,is strengtheningthe planningfunction and establishing clearer relationshipsbetween SET and the various TCs reportingto it. SET's sector-widefunctions in investmentplanning, policy formulation,transport regulations and monitoringof TCs will be strengthened under the project through provision of technicalassistance, while formal training of nationalstakes place (para 3.05).
2.07 The Bissau Municipalityis responsiblefor management of urban servicessuch as streetand drainagemaintenance and solid waste collection, as well as upkeep of markets, slaughterhouses,parks and cemeteries. Primary roads within urban areas are maintained by DGEP. Water and electricity supply is managed by EAGB, a state company under the Ministry of Natural Resources. The municipalityis also responsiblefor land tenure management and the correspondingcollection of property taxes and land lease fees. the While these should, in principle, provide a significant share of municipal resources, their actual contributionhas remained scant, mainly because of inadequatetariff structures,deficient recording and inefficient collection. Measures to update the property tax and land lease records, adjust the tariffs, and improve the performanceof the revenue collection serviceswould be initiatedunder the project (para 3.13). -4-
C. Road Infrastructure
2.08 Accordingto a surveycarried out in 1987, the 2636 km road network c.nprises 544 km of paved, 288 km of laterite gravel and 1804 km of earth roads. Only about 15 percent of the road network is in good condition,and 68 percent is classifiedas poor. The density of about 70 km of road per 1,000 sq km is above the regional average and, given the alternate opportunities offered by river transport, is adequate for the country's needs. Three major ro-d upgradingprojects are included in the Government's three-year investment program (1990-92)with financing from EDF, AfDB and Arab Funds, as well as constructioncf four bridges (EDF). Few new roads should be built in the near future, and further road upgrading to paved standards should be the exception because of the generally low traffic volumes; only 73 km of road have traffic greater than 250 vehicles per day (vpd). Feeder roads, however, need improving to support agricultural development,especially in the southernpart of the country which has been identifiedas an importantdevelopment area. Improvementsto feeder roads and tracks in the South and the links to river transport, which provide economical evacuation of agriculturalproducts, will be included under the project (para 3.11).
2.09 The Second Roads project has started to address constraints to improvingthe conditionof the road network. An economicallysound feasible road rehabilitationand maintenanceprogram has been prepared,and will be supported under the project together with strengtheningof DGEP through technical assistance,to manage increasedcontracting of road maintenance, rehabilitation-nd improvementworks which presently are mainly unuertaken by force account. The objectiveof the program will be, by 1998, to bring nearly all paved and lateritegravel roads and about one fourth of the earth roads to good cordition, and to provide adequate resources to maintain the network (para 3.10). Annex 2-2 provides statisticson the road network.
D. Road Transport
2.10 The total number of vehicles in circulationin Guinea Bissau in 1987 was about 5000, including 3000 private automobiles,300 taxicabs, 5 buses and 1700 trucks of at least 3.5 tons. More than 85 percent of the fleet is registered in Bissau and its current condition is fair to bad. RODOFLUVIAL is the dominant road operator with 50 percent of the total freight market. The truck fleet of the national trading company (ARMAZENS DO POVO) accounts for about 10 percent of the market and the remaining40 percent goes to a mix of private transportersand other public enterprises doing own accounttransport, such as SOCOTRAMin timber productionand trade. Private operatorsare not always licensed and are known to charge more than public enterprisesfor Lheir services,a fact only explainedby the scarcity of truck operatorsin Guinea Bissau. RODOFLUVIALprovides reliableservices although its vehicles are aging; replacementvehicles will be provided under the project (para 3.09).
2.11 The road transport industry faces many problems: (a) poor road conditions; (b) weak financial performance of TCs; (c) mourntingcost of vehicles and spare parts as the G Peso exchange rate continues to - 5 - deteriorate; (d) weak organization of freight transport, which operates without sufficientcoordination in freight collectionand distribution;(e) an undercapitalizedand ill-equippedvehicle repair industry; (f) inadequate trainirgprograms for mechanics,drivers and management;(g) lax enforcement of road traffic safety rules and regulations,resulting in high accident rates; (h) lack of developmentof intermediateforms of transport, such as bicycles and other non-votorized transport means; and (i) inadequate statisticsregarding the avdilablecapacity, utilization, volume of freight, earnings, profitability,import requirements,etc., which are needed for planning purposes.
2.12 The road transport problems are slowly being resolved with the recovery of Guinea-Bissau'seconomy and the availabilityof adequate foreign exchange. The project should make a modest, but significantcontribution through training programs and by assisting SET to pursue a market-oriented approach to the sub-sector (para 3.05).
2.13 There are serious problems in the road passengermarket and part of the transport demand is not satisfied, as indicated by the number of people who walk very long distances. Public transportationin Bissau is provided by SILO DIATA, private taxis, van and converted pick-ups, and enterpriseswhich organizeown accounttranspo . Still, 90 percentof urban trips are on foot (up to 15 kms) and thif affects the productivity of personnel; delays are common and absenteeism reaches 45 percent in some enterprises. SILO DIATA provides scheduled services along four lines from 4 to 15 km long. At the end of 1988, only 9 buses of a 25 vehicle fleet were operational. Four buses were operating in Bissau, four in the regional subsidiaries(Bafata, Canchungo and Buba), and one in internationalservices to Dakar. SILO DIATA provides about five percent of intercity passenger transport,carrying some 350,000 people in 1986. Recently, there has beern an increase in privately-operatedminibuses which provide an acceptable intercity service, connecting Bissau to the most important urban centers. The project will assist SILO DIATA through SET in ; management and operations,as well as facilitatearrangements for privat- ;ectorinvolvement in the compan, (para 3.09).
E. River Infrastructureand Services
2.1S The four river ports recentlyconstructed under Cr. 1392-GUBwill provide adequate capacity, exceeding 100,000 tons per year, in the foreseeable future for evacuatingagricultural production ir. the South. Other regions are best served by road. However, productivity of river transportoperations is low: the load factor of RCDOFLUVIAL'sfleet is about 50 percent, and 65 percent of the round trip time is spent in ports. The absence of beacons prevents sailing at night on most rivers. RODOFLUVIAL'sservices have so far been plagued by lack of spare parts, and old vessels which break down frequently. The quality of port sevices also is a constraintfor both clients and transporterswho often have a long wait before they are allocated a berth and cargo handling equipment. Foreign exchange for spare parts has been made available throut. donor credits, although operating revenues have not been sufficient to generate enough G Pesos to fully utilize these resources. Preventivemaintenance is carried out in-house,and hull repairs are contractedout to the local naval repair facilities which are run efficiently by GUINAVE, a state-owned company. -6-
RODOFLUVIAL intends to partially modernize its fleet with more suitable vessels under the Project (pa,. 3.09).
F. Maritime Ports and Shipping
2.15 The country'sports are managed by the semi-autonomousauthority, JAPG. Port operations are constrainedby an acute shortage of equipment which results in lower than desired productivity. Spare part availability has continued to be a problem despite a slight improvement due to the availabilityof donor credits. Purchasesof new cargo handlingequipment are to be financedby the Arab Funds; but because of their continuoussuspension of disbursementsover the past three years, the equipmenthas not yet been ordered. The successof Bissau Port developmentwill be severelyjeopardized unless key cargo-handlingequipment can be provided in 1990. Port traffic (excludingfuel) was about 150,000 tons in 1988, (exports 32,000 tons and imports 117,000 tons) an increase of 25 percent over 1987; fuel imports amounted to 22,200 tons in 1988 compared to 33,500 tons in 1987. Port trafficis expectedto increaseat 3-5 percent annually. The port's capacity after completionof the new facilitiesand installationof equipment should be sufficient to handle traffic until the year 2000. The existing port facilities,rehabilitated under the ongoing IDA Port Project (Cr. 1392-GUB) will serve the increasingfishing activities. Some 345 fishingvessels used port facilitiesin 1988 as against 245 vessels in 1987, an increase of over 50 percent. The project will continue the institution-buildingefforts at JAPG through SET, with particularat intionto strengtheningthe management of port operations(para 3.09). In order to increase its autonomy,SET has drafted a decree to transformJAPG into a public company. Annex 2-3 shows Port of Bissau traffic statistics.
2.16 Maritime services could be improved through two types of action: (i) shipping agent servicesshould be upgradedby reorganizingmanagement at GUINEKAR and by encouraging private participation; and (ii) freight- forwarding should be organized and opened to the private sector. The strategyshould aim at buildingup the local expertisethrough joint-ventures with foreign partners and integration of shipping services and freight- forwarding. These aspectsare under study by SET with specialistassistance (para 2.34). SET's Marine Directorate (DGMP) is responsiblefor the safety of the country'smaritime traffic:lighthouses, buoys and mapping as well as all legal matters relatingto maritime affairs. A buoy-placingvessel, buoys and lighthouse rehabilitationwere provided under Cr. 1392-GUB. Due to frequent changes in the vessel's staff, the training program has, so far, been unproductiveand the buoy-placingvessel has been practicallyinactive since its handing over to DGMP in July 1987, because of lack of fuel and spare parts. Action is being taken by SET to contractoperations and further training under Cr. 1^92-GUB. Assistancewill be provided under the project to improve DGMP's workshops and services (para 3.05).
G. Airports and Civil Aviation
2.17 The number of domestic aerodromes (17) is high for such a small country. Many have become hazardous for lack of maintenance and should remain closed since traffic does not justify their rehabilitation. Any investments other than those included in the AfDB project to improve facilities and maintain safe operations at Bissalanca, the international - 7 -
airport, and possibly Cufar and Bubaque, seem uneconomical. However, the development of airports should not be seen in isolation from that of air transport services and traffic; and there might be positive trade-offs between increasedmaintenance costs for keeping a greaternumber of airports open and a more intensive use of aircraft through larger routing opportunitieswhich would raise their productivity. Any decisionsshould be linked with the future operationsof TAGB, the governmentairline, which is in a critical condition and needs to be reorganizedbased on a thorough assessment of potential markets and of the human and financial resources needed to run economicallyviable services.
2.18 A PPF financeddiagnostic study on the financialviability of TAGB examined several options for the future developinpntof the national airline (para 3.15). The least cost option for the country would be the transformationof TAGB into an aeroclub with one or two small planes for charter flights and thn collection of royalties from all international airlines serving Guinea Bissau. However, in view of the need to guarantee regional services and support to the tourism industry, the Governmenthas recommendedthe option which calls for the associationbetween TAGB and a foreign airline. This option calls for the creationof a five-yearventure betweenTAGB, a foreignairline and nationalprivate investors. The new TAGB would be managed under a renewable management contract with heavy participationfrom the foreign airline, while Guinean nationals are being trained (para 2.33). Terms of Referencefor invitinginternational aviation companies to create a new aviation company in Guinea Bissau were agreed at negotiations and evidence has been received that internationalaviation companieshave been invited to present their proposals.
H. The Urban Setting
2.19 Most of Guinea-Bissau's urban centers, and specifically the capital, inheritedfairly well-organized systems of road, drainage and water supply infrastructurefrom the colonialperiod; although in most cases, these were almost exclusively confined to downtown areas and military installations.However, maintenance of all infrastructurehas been severely neglected, and virtuallyno fundingmade availableto extend infrastructure networks into the rapidly expandingnew settlementareas. Today, not only is a majority of urban residents deprived of access to even minimal infrastructureservices, but also large parts of the existing networks are in a state of extreme dilapidation.
2.20 As a combined result of both the population densificationof existing housing areas and the persistinglack of maintenanceof water supply and drainagenetworks, the sanitaryconditions particularly in Bissau, have reached a critical stage. Possibly up to 90 percent of the city's populationhas no access to safe water provided by EAGB. Most of them have to resort to supplies from a shallowwater table,which is heavily polluted by infiltrationsfrom latrines and solid waste deposits. Regular garbage collectionis limitedto the downtownarea, but is rather erraticbecause of frequentequipment breakdowns. A choleraoutbreak in October 1987, reported- ly exacted a toll of over 400 victims. While temporarilybrought under control, the epidemic is likely to remain endemic or erupt anew unless the basic sanitary problems are remedied in a more definitemanner. ! 2.21 Housing conditionsin Bissau are generallyvery poor. Aside from the colonial villas left in th,;downtown area and currently occupied by governmentofficials and members of the foreign community,most houses are of traditionaldesign and usually built with locally available materials. Since independence the Government's strategy for the development of the housing sector has consisted pr4imarilyin attempts to canvass external, principallybilateral, funding for various public housing projects intended for civil servants. Resultshaze been disappointingsince no more than 150 units have been completedover the past decade,while severalother projects have been abandonedat various stages of completion. The Governmentis now starting to tackle the housing problem systematically;a housing policy is being prepared,as well as mechanismsfor distributionto civil servantsand private sector of housing plots serviced under SIRP and the project (para 3.14).
2.22 Some prospectsfor improvementof urban infrastructureand services have recently begun to develop. AfDB approved in 1988 a Water Supply and Drainage ImprovementProject for Bissau of US$7.7 million equivalent. The French CooperationFund (FAC) is presentlyproviding technical assistance and basic equipment to the Bissau Municipalityfor the rehabilitationof its solid waste collectionservices in the city center, and strengtheningof its genera] administrationand accounting departments. SIRP will tackle the maintenanceand repair backlog of schools,health centers,markets, streets, etc. in Bissau and several secondarycenters. Assistanceunder the project will consolidateadministration and financingmechanisms for municipalities, and expand solid waste collectionto Bissau suburbs. During negotiationsit was agreed that Bissau Municipalitywill prepare by June 30, 1991 an action plan satisfactoryto IDA to improve its financial resources for municipal services and operations,by: (a) updating its existing property taxes and land lease tariffs; (b) reorganizing its tax administration and its accounting systems and annual audits; (c) improving its management and staffingprocedures; and (d) on-the-jobtraining (para 3.13).
I. Private Sector Participation
2.23 Private freight transporters,estimated at under 500 individuals, operate small trucks, and very few own more than one. They have weak managerialcapacity and limitedfinancial resources; although, the recently- formed Association of Private Transporters (ASTRA) is providing a better focus on their needs. The private market share, which may be substantial, is more the result of the public sector being unable to keep enough capacity in running order, than of their greater efficiency. Furthermore, local maintenancefacilities are inadequate,and importingtrucks and spare parts has been difficultbecause of the foreignexchange scarcity. For the private sector to contributeefficiently to the reductionof transportcost, radical structural changes are required, including privatization of commercial activities,elimination of barter trades and parallel markets through the restorationof realistic foreign exchange rates and unrestrictedimport of spares and vehicles. These important reforms are included in the policy content of StructuralAdjustment Programs and already private transporters are becoming more active in providing freight and passenger services. One private trucking company started recently to operate internationallywith four large trucks. - 9 -
2.24 Guinea Bissauhas a small,mainly informalconstruction industry. Four firms have some building experience,but lack expertise and equipment for most infrastructureworks. Under SIRP, local firms will be given the opportunityto carry out infrastructurerepairs, and their capacity will be furtherdeveloped under the projectto undertakelabor-based road improvement and maintenanceworks (para 3.11).
J. Manpower and Training
2.25 The Guinea-Bissauwork force suffers from serious shortages of skilled managers and workers in all sectors. This condition has been recognized by both the Government and donor agencies as being crucial to economic progress and productivity. In this regard, several factors have been identifiedwhich pose major constraintsto further developmentof the nation'shuman resourcebase. These factorsinvolve: (a) the efficiencyand throughputof the educationalsystem as evidencedby high rates of illiteracy (affecting90 percent of all persons above the age of seven),and low school completionrates (whereroughly one studentin 5,000 completesthe ninth year without repeating);(b) weak managerial,technical and commercialskills as evidenced by low work outputs, poor utilization of the work force, poor planning,no quality control or job accountability,and a strong dependency upon foreign technicalassistance; and (c) non-skill-dependentfactors such as low motivation and morale, lack of tools and equipment,lack of operating budgets, poor work force supervision,permissive labor laws, and general acceptance of poor workmanship. All of these factors act to prevent or constrain managers and workers from performing well even when they are competentand well-trained,and impact heavily upon the overall development of the nation's economy.
2.26 In an effort to deal with the above issues, the Government,with extensive donor assistance,has attempted to strengthen the education and training sectors through a series of specific projects that have focused mainly on primary education, illiteracy, and vocational education. In addition, sector specific training has been supported through various projects that have included in-house and on-the-job training, overseas fellowships,and the transfer of expertise through technical assistance. Unfortunately,the successof these activitieshas been difficultto assess since there is little coordinationbetween the various Governmentand donor agencies,and measurable targets are seldom specified or adhered to. This is substantiatedby the fact that despite extensiveefforts and investments the effectivenessof the work force is minimal; meanwhile the country must continue to rely on technicalassistance for some time to come.
2.27 Recognizing the conditions within the labor market, and specifically in the transport and urban sectors, a SPPF-financed study examined the needs of these sectors and recommended specific actions to develop a criticalmass of trainedpeople in Guinea Bissau. The projectwill provide support to the two local training institutions(CENFI and CENFA), under the Professional Training and Technical Institution (ITFP), in undertakingtraining to improvemanagement, technical and accountingskills, overseas fellowships,and technicalassistance to MES for managing training programs and overseeingon-the-job training carried out by consultants(para 3.08).
! - 10 -
K. Sector Planning,Accounting and Cost Recovery
2.28 The inadequate institutional arrangements and the lack of informationfor planning purposeshas been compoundedby a distortedview of benefits generated by investments. Typicail,, projects have not been reviewed under an integrated modal approach, or assessed against viable alternativeswithin and outside the sub-sector. The TransportPolicy (para 2.03) and the Housing Policy (para 2.21) will provide the framework for improving performance in these sectors. The strengtheningof economic evaluationof projects by the Studiesand Planning offices (GEP/OPin MES and GEP/T in SET) will be supportedunder the project, and three-year rolling transport and urban investmentprograms will be prepared annually. During negotiations,agreement was reachedthat Governmentwill: (a) prepare for IDA review by September30 of each year until completionof the project, three- year rollingurban and transportinvestment plans, as well as annual budgets for the coming fiscal year, and physical and iinancialperformiances of the previous fiscal year; (b) ensure that infrastructuresector rehabilitation and maintenanceprograms have priority over new constructionand upgrading; (c) only undertake infrastructureinvestments which have an estimated economic rate of return greater than 12 percent; and (d) that any proposed investment over US$1.0 million equivalent will be agreed with IDA. In particular,the 1990-92 infrastructuresectors investment program was agreed at negotiations(Annex 2-4).
2.29 The countryhas very limitedaccounting capabilities and all areas of financialmanagement show weaknesses. In particular,there is a shortage of qualified accountantsin the TCs, which have had to rely on expatriate assistance. However, this assistancehas not yet produced durable effects since local counterpartsgenerally have a limitededucation background, which does not allow them to take over accountingresponsibilities when the foreign expert leaves. The same deficiencies are found at ministries, Bissau Municipalityand the National Bank, BNG, where most personnel in accounts departments are not qualified, resulting in inaccurate records and a slow processingof documents. Three accountantsin JAPG, RODOFLUVThIand SET have recentlyreceived overseastraining, but furtherassistance will be required under the project to inculcatesound accountingpractices (paras 3.04, 3.05 and 3.09).
2.30 The revenues generated by the Road Fund (RF), which was created in 1984 under MES (para 2.05) amounted to an estimatedG Pesos 370 million in 1988 (about US$330,000). RF provides the sole source of local funding for road maintenanceoperations. PresentlyMES maintains about 1000 km or about 40 percent of the road network, and funding requirement for these operationsis about US$940,000;the shortfallis coveredby externalsources. Periodic and routine maintenance costs are expected to increase to about US$1.9 million by 1995, as MES expands its operationsto cover most of the road network. The RF receivesmost of its revenues from a tax of G Pesos 11 per liter on gasolineconsumption. There is presentlyno consumptiontax on diesel (gas oil), which retails at less than half the price of gasoline. Other sources of revenue for the RF (vehicleregistration, licensing, import duties and tolls) produce little in comparison. Since the main damage to roads is inflictedby trucks,which are usually diesel powered, a tax needs to be imposed on their users to support road maintenance costs. MES has - 11 -
studied alternatives such as levying a quarterly tax on heavy vehicles or a consumption tax on die sel which would be more easily collected through DICOL, the national petroleum company. A diesel consumption tax usually better reflects the wear on road pavements caused by heavy vehicles and can be easily collected at source of distribution, although DICOL payments of the gasoline consumption tax have been slow in reaching the treasury. However, in Guinea Bissau about 40 percent of diesel is consumed by non-] oad users, such as EAGBand farm vehicles. Consequently, the Government has decided to increase revenues for road maintenance by: (a) raising the tax on the CIF price of gasoline from 5 to 20 percent by December 31, 1990; (b) increasing the circulation tax, by July 31, 1990, and adjusting it quarterly to reflect inflation as indicated by the national bank (BNG); and (c) creating a quarterly tax on diesel powered road vehicles to be updated quarterLy to reflect inflation, starting July 31, 1990; such tax to replace existing road and bridge tolls. During negotiations agreement was reached on measures needed to establish each year the values of all proposed taxes, except the gasoline tax, according to the inflation rate and the needs of the road fund, and to improve their collection, including better coordination with the Customs Department for collecting customs taxes on imported vehicles and spare parts, as well as timeliness of deposits into the RF. The agreed objective is to increase RF revenues to cover at least 20 percent of programmed road maintenance operations through 1990, 30 percent in 1991 and 1992, 40 percent in 1993 and 1994, and 50 percent thereafter. As a Condition of Effectiveness, the Government will take measures satisfactory to the Association to enable an increase in revenues for the RF to cover the agreed amounts for road maintenance expenditures. Annex 2-5 provides details of road user charges, projections of road fleet growth and fuel consumption, and RF administration costs, and an estimate of revenues generated for the RF.
2.31 Transportation Services. Whereas cost recovery for freight transport is broadly satisfactory, the Government's concern about the social impact of tariff increases has often resulted in late adjustments of rates which have caused financial imbalances for some TCs. In particular, reluctance to raise passenger tariffs has severely affected SILO DIATA and TAGB. Under the PPF, SET is assisting each of the TCs to prepare criteria for adjusting tariffs to compensate for inflation and to cover long-term variable costs of services provided by the TCs. Production targets will be set and quarterly reviews undertaken by SET. During negotiations, agreement was reached on: (a) operational and financial targets for each of the TCs; and (b) criteria for adjusting periodically their tariffs. The implementation of the revised system for adjusting tariffs for each TC is a Condition of Effectiveness.
2.32 RODOFLUVIAL, the trucking and river transport parastatal, is financially self-sufficient and is not contributing to the fiscal deficit. Over the next five years, RODOFLUVIALis expected to be profitable, but is not expected to pay income taxes to compensate for the negative results in previous years. JAPG is also self-sufficient and is expected to be profitable from 1991 onwards if the ongoing port modernization is completed without undue delay, and the improvements in management are implemented. As shown in a recent study (para 4.08), by the end of 1988, SILO DIATA's debts amounted to US$1.2 million (equivalent) mainly to Portugue3e suppliers. SILO DIATA will have to restructure in order to provide financially viable -12 - operations and satisfactoryservices. During negotiationsthe Government agreed to assume SILO DIATA's foreigndebt (Conditionof Effectiveness),and to activelycontinue discussions with private companiesto enter into a joint venture with SILO DIATA to form a viable bus company.
2.33 The distressed financial condition of TAGB stems from equipment failure, lack of spare parts and inadequatepricing of its services. TAGB maintainsonly a simplisticaccounting system, and has not produced financial statementsin recent years. Its two aircrafts (an Antonov and a HS740) are used for scheduled service to Dakar and Conakry. The load factor to Dakar is around 80 percent and TAGB appears to be capturinga higher market share than Air Senegal. However, its tariffs have been lower than those of Air Senegal and the majority of the users are nationalswho pay in local currency when most of the expenses,including the crew and maintenanceare in foreign exchange. The flight to Conakryhas very low load factors (25 to 30 percent) and during the dry season not even an intermediate stop in Cufar has increasedthe number of passengers. Tariffs on this run are also lower than operatingcosts and revenueshave not even coveredfuel costs. In an attempt to increase the low aircraft utilization from 500 to approximately 1000 hoursiyear and increase its foreign exchange earnings, TAGB recently negotiated a flight from Bissau to Las Palmas with SEMAPESCA, a private fishingoutfit for the transportationof cargo and passengers. In addition, TAGB negotiated a scheduledweekly flight to Cape Verde with rental of the HS740 to the TACV, Cape Verde airline. Also, costs of aircraftmaintenance provided by TACV are lower than those normally paid by TAGB. Finally, TAGB negotiateda pool agreementwith a French airline (EAS) to link Paris, Lisbon and Bissau; the weekly flights are showing load factorsof above 70 percent between Lisbon and Bissau, but only 20-23 percent between Lisbon and Paris because TAGB/EAS do not have traffic rights for this segment. The Associationhas provided an alternativeto TAP, but over the initialperiod was costing an estimatedUS$150,000 monthly in foreign exchange to Guinea Bissau. The future of air transportin Guinea Bissau hinges on finding the mix of internationaland domestic flightswhich will satisfy the demand for regional and overseasconnections and minimize the foreign exchangecosts to the country (paras 4.16 and 4.17).
2.34 In 1987, GUINEMAR showed a profit of G Peso 250 million, of which 75 million were gains due to the peso devaluation. However, the amount of receivables is extremely high and GUINEMAR needs to reduce its average collectionperiod. Also, GUINEMAR remainsthe highest debtor to the JAPG (GP 750 million by October 1988) and was given an ultimatumby JAPG to settle its accounts. Given the high amounts in foreign exchange payments involved in GUINEMAR operations,the problem in collectingits fees from shipownersand the clear lack of financial management, SET has engaged a firm to audit GUINEMAR's accounts and to recommendactions to improve its operations and financial performance. The recent appearance in the market of private shipping agencies such as TRANSMAR may bring about an improvement of GUINEMAR'S level of service. During negotiations,agreement was reached on the restructuringof GUINEMAR,including private participation, if necessary, by June 30, 1991; and for GUINEMARPto repay by June 30, 1990 all debt owed to JAPG as of March 1, 1990; and to repay all future bills owed ..o JAPG within a period of four months of the date of billing. - 13 -
L. Sector Issues and Strategy
2.35 Guinea Bissau's Transport Policy (para 2.03) focuses on the country'smain transportproblems and policy issues,and presents a strategy for tackling them over the short and medium term. It proposes a coordinated approach linking necessary policy and institutionalreforms to a phased program of donor assistance to rehabilitatethe transport sector, which is crucial for the success of Guinea-Bissau'seconomic recovery. In the infrastructuresectors the Governmentwill give priority to rehabilitation and maintenance programs over new construction,with investmentshaving an estimated economic rate of return greater than 12 percent. Private sector participationwill be encouragedin urban and transportactivities, including contracting of housing, refuse collection,periodic road maintenance and feeder road works. Suitable criteria for pricing of services and adequate cost recovery are to be establishedparticularly in: (a) read user charges; (b) passengerand freight transport,port, airport and airline tariffs, and (c) property taxes to cover urban services,and (d) land lease tariffs to cover sites and services for housing plots. The creation of a National Airport Authority in charge of maintaining and operating the airports was studied under an AfDB-financedproject and MES intends to implement its recommendations. The inadequatecost-recovery in the TCs will be addressed as part of their reorganizationand restructuringunder the project, and through efforts to improve efficiency by training to upgrade skills and reducing unskilled staffing levels.
2.36 Although the Government has recently followed a positive policy towards establishinga market-orientedtransport system, an institutional frameworkneeds to be developed for policy discussionsbetween the private sector and MES/SET, which is essential for building a climate of mutual confidence. There has been a lack of clarity about Government's new policies,especially where the past regulatoryframework provided conflicting signals.In order to provide a sound basis for efficienttransportation, new regulations have been drafted. The main issues facing the TCs are inefficiency,over-staffing, aged fleets,weak maintenance structuresand, especially for SILO DIATA and TAGB, their foreign debt and government subsidies. The structural adjustment program is addressing parastatal reforms as part of a national program, and the TCs will be provided further assistance under the project, through SET, for internal restructuring, management of operations,equipment maintenance and accounting (para 3.05). During negotiations,agreement was reachedon the new transportregulations; their publicationto be carried out by Credit Effectiveness.
H. Bank Group Involvementin the InfrastructureSectors
2.37 Port of Bissau Project (Credit 1392-GUB). Financing by IDA (SDR 14.9 million) was complementedby Arab Funds (US$31.5million equivalent). The IDA project provided for: (a) rehabilitationof the old port facilities at Bissau; (b) extensionof river transportationfacilities - four new ports and reconstructionof eight river ramps; (c) construction and repair of office buildingsand staff houses; (d) procurementof a buoy-placingvessel and minor equipment, and (e) technicalassistance to RODOFLUVIAL,JAPG and SET. The project is expected to be completed by June 1990. Repeated suspensionsof disbursementby the Arab Funds, because of repaymentarrears, which are financingthe constructionof a new berth at Bissau and pro irement - 14 - of cargo handling equipment,will furtherdelay completionof the project if the problem of arrears payments causes extended suspension. Institution building has progressed,but will fall short of initial targets. The low professionallevel of management,lack of motivationand excessive rotation of staff, and to some extent, inadequatetechnical assistance explain this disappointingperformance. Port treffic has grown faster than estimatedat appraisal and in 1988 was about 150,000 tons (excludingfuel) compared to 110,000 tons forecast.
2.38 The First and Second Roads Projects (Credits 878 and 1473/F018- GUB). IDA financed US$9 million and administeredthe EEC Special Action Credit No.44 for the First Project, and for the Second Project about US$8 million (SDR 7.8 million)with the Kuwait Fund contributingUS$5.6 million. The objectiveunder the two roads projectswas to strengthenroad management, rehabilitategravel and paved roads, support road maintenance and improve ferry crossingsand operations. Audit Report No. 6328 for the first project, issued on June 30, 1986, highlightedthe difficult local conditionsand the acute shortage of local staff with necessary basic skills. The ongoing second project has been set back by unavailabilityof the Kuwait Fund Credit up to February 1988 and between September 1988 and June 1989, because of disbursementsuspensions caused by repaymentarrears, which financeequipment and fuel for road maintenanceoperations in the southernhalf of the country and a paved road rehabilitationcontract. The IDA project is substantially completedand funds are almost fully disbursed,but completionof the Kuwait Fund componentswill depend on future uninterrupteddisbursements.
2.39 The First and Second ReconstructionImport Credits (Credits 1531 and A14-GUB). The First and Second RecorstructionImport Credits, totalling US$15 millon equivalent,allocated some US$4 millon to the transportsector, including about US$1.2 million for the TCs. The closing dates are June 30 and December 31, 1989, respectively. These funds have been made available to purchase spare parts and have contributedto a limited extent to raising the availabilityrate of transportequipment. However, shortagesof G Peso cover on behalf of the TCs preventedfull utilizationof these credits, and will amount to only about half the allocationto the transport sector.
2.40 The Social and InfrastructureRelief Project (Credit 2020-GUB). This projectwas approved on May 18, 1989, and declared effectiveon October 30, 1989. IDA is financing SDR 3.85 million (about US$5.0 million) out of an overallproject cost of about US$17 million, of which 56 percent has been allocatedto infrastructureworks in Bissau and secondarycenters, comprising repairs to streets, sidewalks,culverts, water supply and se-erage systems and community facilities (schools,health centers, markets, etc.), as well as servicing 700 housing plots in the Antula neighborhoodin Bissau. The project will be implementedover a three-yearperiod and is expected to be completedby end-1992. - 15 -
III. THE PROJECT
A. Project Backgroundand Objectives
3.01 The project componentswere preparedby MES/SET with assistanceof consultantsfinanced under the Second Roads and Port of Bissau Projects and two PPF Advances for the project. The project was initially designed to cover a four-year period; however, considering the ongoing and recently committed investments in the infrastructuresectors and the investment ceilings agreed under the country's structuraladjustment program, as well as the absorptive capacity of government agencies, the project period has been extended to cover a five-yearperiod (1990-1994).
3.02 The main objectivesof the project are to:
(a) strengthen the government institutionsinvolved in the transport sectors (MES and SET) in: (i) management of maintenance and operations; (ii) planning and coordinationof sector activities; and (iii) financialmanagement of public transportcompanies;
(b) contributeto a greater equilibriumbetween road and river transportby: (i) rehabilitatingabout 14 percentof the classified road network, and priority urban streets; (ii) assisting public transport companies to improve efficiency and reliability of service;and (iii) facilitatingprivate participation in transport and infrastructureoperations;
(c) remove bottlenecks to increased agriculturalproduction, particularly in the South, by improving parts of the existing feeder road network;
(d) improve municipal management and services in Bissau and other centers, and provide serviced plots and demonstrationhouses to more fully address the need for low cost housing; and
(e) support a comprehensivemanpower developmentand training program to provide trained personnel for Government agencies, municipalitiesand the private sector to operate, maintain and manage urban and transportinfrastructure and services.
B. Project Description
3.03 To realizethe above objectives,the projectwill providefinancial assistancefor the followingcomponents:
(a) InstitutionalSupport
(i) strengtheningthe management of MES, includingcoordination of infrastructureprojects, budgeting and financing,as well as remodelling and constructionof houses and offices for technicalassistance and logistic support;
(ii) strengtheningthe management of SET in transport planning, marine services and monitoring of TCs, including technical assistance for studies, advice to private transporters,and preparationof performanceplans and privateparticipation or - 16 -
agreements for SILO DIATA, RODOFLUVIAL, JAPG, TAGB and GUINEMAR,and logistic support;
(iii) strengtheningof LEGUI's capability to undertake soils and materials testing and research studies, remodelling the laboratoryand logistic support;
(iv) five year manpowerdevelopment and trainingprogram, including remodellingof training facilitieEand logistic support; and
(v) auditing of proŽiect acco.ints, and accounts of Bissat Municipalityand p.tblictranuport companies;
(b) TransportCompanies (TCs)
(i) spare parts and workshop assistancefor SILO DIATA;
(ii) one barge, ten trucks, spare parts and workshop assistance for RODOFLUVIAL;
(iii) workshop assistancefor JAPG; and
(iv) workshop assistancefor TAGB;
(c) Road InfrastructureProgram
(i) rehabilitatior.and resealingof about 180 km of paved roads;
(ii) rehabilitationof about three km of urban streets in .issau and paving of about five km in other centers;
(iii) rehabilitationand graveling of about 175 km of lateriteand earth roads, includingabout 16 km of low-costasphalt paving;
(iv) improvementof about 130 km of feeder roads and 40-60 km of trails by labor-basedmethods, includingspecialist training and a study of non-motorizedtransport in rural areas;
(v) constructionand rehabilitationof seven ferry ramps, and replacement of one ferry;
(iv) equipment,vehicles, spare parts,materials and contractsfor maintenance of roads, aerodromes and ferry crossings, and logistic support for DGEP; and
(vii) technicalassistance, including on-the-job training for DGEP and domestic contractors,and road studies;
(d) Urban Program
(i) equipmentand vehicles for solid waste collection,technical assistanceand logistic support for Bissau Municipality; - 17 -
(ii) developmentof about 470 plots in Bissau and 250 plots in the provincialand regionalcenters for low-costhousing including constructionof about 40 cost-effectivedemonstration houses, includinga survey of persons currently living on the sites, and their resettlement,if necessary;and
(iii) technicalassistance, including on-the-job training, to DGHU for strengtheningurban planning and advisory services to municipalities for improving technical and financial management.
C. InstitutionalSupport
3.04 Technical assistance to MES will be provided through a Project CoordinationUnit (PCU) totalling about 108 m-m over the project period (firstthree years full time), comprisinga coordinator(civil engineer) for 42 m-m and an accountantfor 32 m-m, as well as a trainingadvisor (34 m-m) who will assist in organizing a Human Resource Planning and Management Section (HRPM) to be established in GEP/OP. The PCU will coordinate implementationof all project components,management of IDA and donor funds, authorizationof projectexpenditures, preparation of progressreports to the Minister and donor agencies, cor.tracting of project audits, and administrationof the training program. PCU will also assist MES/SET in preparationof annual aid three-yearinvestment plans, and annual budgetsand expenditurereviews. %:U will coordinateits activitiesthrough an Executive Committee comprising the Directors of GEP/OP, GEP/T, DGHU and DGEP, the General Secretary of MES and the State Secretary of Transport, under the chairmanship of the Minister of MES. Contracting of the coordinator, accountantand training advisor for the PCU is a Conditionof Effectiveness.
3.05 Technical assistanceto SET will be provided through a Transport Coordination Unit (TCU), comprising economists, financial analysts and engineers, totaling about 124 m-m, as well as 72 m-m of mechanical Hnd workshop assistance to RODOFLUVIAL,SILO DIATA, JAPG and TAGB. TCU will assist GEP/T with studies,monitoring performanceof, and providing advice to the TCs and members of ASTRA, as well as assistingSET departments,DGTT and DGMP, in carrying out their functions.DGMP workshop will be remodelled and equipped, and two launches purchased. TCU will organize and conduct regular training courses for public and private sector participation.
3.06 Technical assistance to SET, LEGUI, DGEP, DGHU, Bissau Municipality,and the public transportcompanies and for the comprehensive training program is detailed below under the relevant components. The intention is for all technical assistanceto work cor.tinuouslyand closely with their counterpartsover the project period; or where counterpartsare lacking, to undertake direct responsibilities.As counterpartsobtain the necessary skills, assistancewill be phased out, and reduced to periodic visits for specific tasks znd to further upgrade skills. The terms of referencefor all assistanceunder the projectwere agreed at negotiations. Terms of reference for PCU, TCU and TO and assistance to DGHU and Bissau Municipalityare provided in the project file. Organizationalcharts of MES's coordinationof the project and of the PCU are provided in Annex 3-1. - 18 -
3.07 Assistance to LEGUI will enable it to: (i) equip its laboratory to undertake more effectively soils and materials tests for works; (ii) carry out an inventory of local materials for buildings and road works; and (iii) undertake research on low-cost paving of laterite roads. The technical assistance (18 m-mn) is expected to be provided by LNEC of Portugal which has been assisting LEGUI since 1986. Details of the LEGUI program are provided in Annex 3-2.
3.08 The comprehensive manpower development and training program will train about 1,500 people in management, accounting and operational activities relating to the infrastructure and transport sectors; the training advisor in PCU will manage the program. An estimated 20 percent of the participants will come from the private sector, and 30-40 people will undertake short courses or study tours outside Guinea Bissau. A further 400 of MES/SET staff will receive basic literacy educatior. The courses in Bissau will be run by foreign institutions and by the two training institutions in Bissau: CENFI and CENFA. The project will also provide training equipment and logistic support for the program and will convert part of a building at MES into a training center. Details of the manpower development and training program are provided in the project file, and budget estimates are provided in Annex 3-3.
D. Transport Companies
3.09 In line with its overall public enterprise reform objectives, the Government intends to reform TCs to improve their efficiency and to privatize those with commercial potential. Through the creation under the project of an appropriate regulatory environment, a more substantive involvement of the private sector is expected to evolve over the coming years. Consequently under this project the main strategy with respect to the TCs is as follows: (a) improve the efficiency and effectiveness of the TCs performing a public function, including private sector participation, namely JAPG, GUINEMAR;and (b) privatize TCs with commercial potentia], namely RODOFLUVIAL,SILO DIATA and TAGBwhere their financial viability can bs established. The project will provide technical assistance through the TCU in SET, concentrated over the first two years of the project period, to assist the TCs in improving their financial operations and workshop management. For TCs to be privatized, tha TCU will help prepare and carry out action plans to this effect. In particular, RODOFLUVIALwill replace obsolete tLcks and begin modernizing its barge fleet, and receive workshop assistance; JAPG's assistance is mainly designed to increase port productivity and develop cspability to carry out technical and mi'dle management tasks; SILO DIATA's assistance will create proper accounting and financial management procedures, and provide a service vehicle, spare parts, workshop renovation and assistance to repair the bus fleet; TAGB's assistance will create adequate coumercial accounting and financial management procedures, and workshop assistance. Details of the financial statements and investment plans, and the operational and financial targets for RODOFLUVIAL,JAPG, SILO DIATA and TAGBare provided in Chapter IV. During negotiations agreemeat was reached that by March 31, 1991, the Government will present IDA with specific action plans for involviog private participation in each of the TCs; changes required in the ownership or management of the TCs to be implemented by January 1, 1992. - 19 -
E. Road Infrastructure
3.10 The road infrastructureprogram has three primary objectives! (a) rehabilitationof paved and unpaved roads, including river crossings. that provideessential access betweenagricultural production areas and river ports or consumption centers: (b) imprcrements to feeder roads in the important agriculturalarea in the South; and (c) consolidatingthe rord maintenanc effort initiated under the Second Roads Project. DGEP roaa brigades,with increasingparticipation of contractors,should be capableof adequatelymaintaining the rehabilitatednetwork by 1995. Of the 2636 km of roads in Guinea Bissau, about 515 km (63 percent) of paved roads and about 580 km (72 percent) of laterite gravel roads should be in good conditionby 1995, although less than 343 km (about 34 percent) of earth roads, which support little traffic, would be in a maintainablestate. Details of the road infrastructureprogram are provided in Annex 3-4, and the pilot feeder road program in Annex 3-5.
3.11 About 130 km of feeder roads and 40-60 km of trails in the South will be improvedunder a pilot program by labor-basedmethods which utilize local labor and unsophisticatedequipment. Road improvementsare needed to support agriculturedevelopment in the area by providing better access to markets and river ramps. The constructionmethodology will take into account experience gained under a Swedish-fundedproject in the North which has rehabilitatedsome 100 km throughlabor-based and equipmentmeans. The works will be managed by a DGEP unit which will contract out most of the tasks to three domestic firms, with hire-purchasearrangements for equipment. The average cost of the work is estimatedat US$10,400per km; subsequentfeeder road maintenancewill average about US$250 per year. Technical assistance and specialisttraining will be providedunder the projectby an engineer (54 in-m) and two UN volunteers (65 m-m) to enable labor-based activities to become a permanent alternativemethod for undertaking road works. The project will also set up procedures for maintaining the improved roads through contractswith small, local firms and communities. Furthermore,a study will be undertakento investigatethe possibilityof introducingnon- motorized transportin rural areas, irnorder to facilitateon-farm and farm- to-villagetravel which is mainly carried out by women who head-load
3.12 Technical assistance to DGEP for ma-aging and executing road maintenance and rehabilitationstarted in 1985 under the Second Roads Project. Because of the acute shortage of trained staff and the concentrationon improvingroad conditionsand maintenanceunder the project, key assistanceto DGEP will be continuedover the project period throughMES' TechnicalOffice (TO), which was establishedunder SIRP, amountingto 200 m- m, comprising a highway engineer,short-term workshop specialists,and two roads technicians,who will also undertakeengineering design and supervise contractedwork. Classroom and on-the-jobtraining will be provided under the general directionof the training advisor in the PCU.
F. Urban Program
3.13 The componentsof the urban programwill primarily complementand enhance actions or activities initiated earlier in municipal management strengtheningand low-costhousing developmentunder projects funded by IDA (SIRP) and other donors. Technicalassistance (30 m-m) will be provided to - 20 -
DGHU for strengthening urban planning and advisory services to municipalities. The pilot program for the Bissau Municipalitywill provide a limited number of solid waste collectionvehicles and equipment, as well as technicalassistance (10 m-m) and related logistic support for improving the municipality'stechnical and financialmanagement systems. The component would largely build on experience gained through assistance provided by France (FAC), which is scheduledto be completed in 1990, and through SIRP in implementationof small-scaleurban infrastructurewor!:s. Measures to improve Bissau Municipality'sfinancial resourc.es,'n particular through appropriateupdating of the existingproperty tax and land lease tariffswill be prepared with technical assistance (10 m-m) and form the municipality's action plan (para 2.22).
3.14 The site development and housing component will expand on the sites-and-servicesoperations carried out under SIRP in Bissau, and include the servicingof about 470 additionalplots in the city, and about 250 plots in about six secondarycenters. The componentwill also includethe building of a series of low-cost demonstrationhouses in various locations in order to show the feasibility of cost-effective housing solutions, promote appropriateconstruction techniques, and serve as a testing ground for the development of adequate design standards and building regulations. In addition, the implementationof the works included in this component is expected to partly overlap with the execution of the Housing Sector Policy Study, funded under the PPF and, thus, to provide the study the opportunity to check the validity of its recommendationsor rectifythe options proposed in light of the experienceswith actual, life-sizeoperations. Criteria for housing plot allocationand cost recoverymechanisms are being studiedunder the PPF, together with the conditionsfor sale or transfer of demonstration houses (para 3.23). Details of the Urban Program are provided in Annex 3-6.
G. Project PreparationFacility (PPF) Advance
3.15 To assist Guinea Bissau in preparingproject components,an advance of US$1,500,000has been grantedin the form of a PPF (US$750,000in December 1987 and US$750,000in March 1989). The funds are being used to finance: (a) studies to prepare financiallyand economicallyfeasible investment programs for TCs; (b) pilot housingdevelopment component and a Housing Sector Policy; (c) spare parts and materials for buses and road maintenance; and (d) technicalassistance and logistic support to SET and DGEP.
H. Project Cost Estimatesand Financing
3.16 The estimatedtotal cost of the pro4ect, includingcontingencies, is US$43.3 million equivalent. No duties or taxes are to be levied against projectitems, except for local contractsfor civil and buildingworks, which will be small. The foreignexchange componentis about US$34.3 million, or 79 percent of the total cost. Base costs have been estimated at December 1989 prices. Physicalcontingencies average about 5.5 percentof base costs: 10 percent for civil and works and road maintenanceequipment; 5 percent for equipment, tools and spare parts, and for institutionalsupport, technical assistance and studies. No physical contingencieshave been provided for road maintenance operations because the estimates are based on budget allocations for a five-year (1990-94) time slice. Price contingencies average 14.9 percentof base cost plus physical contingencies,and are based - 21 -
on estimated foreign inflation of 7.2 percent in 1990, and 4.4 percent thereafter. Annual local inflationprojections are 25 percent in 1990, 15 percent in 1991, and 8 percent thereafter. This assumes that the exchange rate (taken as US$1.0 = G Peso 2,600 for base cost estimates) will be adjusted for divergences between foreign and local rates of inflation. Overall, almost 500 m-m of management, technical,financial, volunteer and training assistancewill be provided under the pr ject. Consultantswill also undertake detailed design and supervise building and civil works, through the TO, and will carry out transportand urban sector studies, and audits. Training instituteswill carry out courses in Bissau and abroad.
3.17 The project will be financed by IDA (US$23.6million equivalent) and the Government will provide US$4.8 million equivalent through budget appropriationsand the Road Fund. Presently, there is a financing gap of US$14.9 million to complete the financing plan for the project. Several donors have been approachedincluding EDF, UNCDF. FAC, AfDB, Kuwait Fund, KfW and UNDP. Reactionsfrom these donors have been positive,and it is expected that the financinggap will be filled in a timely fashion. The bulk of the financing gap relates to road rehabilitationand maintenanceequipment for which IDA financingwill cover at least the first year requirements. Other IDA-financedcomponents will be affectedby delays in cofinancingonly to the extent that the rehabilitationprogram will be implementedover a longer period. Annex 3-7 provides details of cost estimatesand a financingplan which shows tentativeamounts from possible cofinanciers. - 22 -
QIDEA8ISSAU 31FRASTRUCRREREHABILIATION PROJECT SumaryCost Table (U18 '000) (Base Cost as at Decnebr 31, 1989) TOTAL TOTAL Percentageof LOCd FOREIGI TOTAL BaseCost A. Institutional Support (t) MESStrengthening 134.0 1,008.0 1,140.0 3.2% (li) SETStrengthening 184.0 1,708.0 1,890.0e.3% (iIi) LEWI Strengthening 128.4 683.6 710.0 2.0% (lv) Training Program 174.2 1,180.8 1,366.0 3.8% (v) Auditing of Project and T.C.s 40.0 360.0 400.0 1.1% (vi) Project Preparation 0.0 1,500.0 1,500.0 4.2% Subtotal 658.8 6,338.4 6,996.0 19.8% B. TransportCompanies (i) Silo Diata 35.4 803.6 839.0 2.3% (il) Rodofluvial 14.4 1,729.6 1,744.0 4.9% (111) JAPG 14.4 129.6 144.0 0.4% (iv) TAGS 14.4 129.6 144.0 0.4% Subtotal 78.6 2,792.4 2,871.0 8.0% C. RoadInfrastructure Program (i) Road Rehabilitation 2,119.6 8,389.2 10,488.8 29.4% (Ti) Ferry Boat andRamps 160.0 40.0 1,000.0 2.8% (il) Technical assistance 278.0 2,484.0 2,780.0 7.7% (iv) EquipmentReplacement 0.0 1,700.0 1,700.0 4.8% Subtotal 2,656.6 13,393.2 16,948.8 44.7% D. UrbanProgram (1) Garbage& Office Equipment 0.0 396.0 396.0 1.1% (ii) Housing Program 407.8 757.3 1,185.0 3.3% (ill) Tech. Assistance 40.0 360.0 400.0 1.1% Subtotal 447.8 1,512.3 1,960.0 5.5% E. RoadMaintenance Operations 3,178.0 4,784.0 7,940.0 22.2%
Total Project Base Cost 6,916.5 28,798.3 35,714.8 100.0% Physical Contingencies 301.0 1,872.2 1,973.2 5.6% Price Contingencies 1,784.1 3,823.5 5,607.6 15.7%
Total Project Cost 9,001.7 34,293.9 43,295.8 - 23 -
I. Implementationand Present Status of the Project
3.18 The Minister of MES will have overall responsibility for implementationof the Project,with the State Secretary of SET responsible for transport components and the General Directors of DGEP and DGUH responsiblefor the roads and urban components respectively. The PCU will manage project accounts,reporting, and overallcoordination of procurement, technical assistance and training programs. The PCU will also provide support in planning,budgeting and monitoringfunctions, and in coordinating programs with other technical ministries and the Ministry of Plan. An agreement has been signed between MES and Bissau Municipality. A Participation Agreement will be entered into between SET and each TC receivingdirect assistanceunder the Project (Conditionof Effectiveness). An outline of these ParticipationAgreements was agreed at negotiations (Annex 3-8).
3.19 The five-year(1990-94) road rehabilitationand maintenanceprogram has been prepared, feeder road improvementsidentified, and TC programs analyzed. The manpower development and training study was completed in December 1988. The projectwas appraisedin November 1988 and negotiated in October 1989; the Credit should be effective by March 1990. The project should be physicallycompleted by June 30, 1995, which allows for a 6-month slippage in executingthe five-yearprogram. The implementationschedule is shown in Annex 3-9.
J. Procurement
3.20 Procurementarrangements are summarizedas follows:
Amounts and Methods of Procuremental (US$ millions) Total Project Items to be Procured ProcurementMethod Cost
ICB LCB Other NA b/
Civil and building 13.8 2.7 - - 16.5 works (5.7) (0.4) - - (6.1) Road maintenance - - 0.8 - 0.8 operations (0.8) - (0.8) Equipment and 5.2 - 1.3 - 6.5 materials except for (1.9) - (0.3) - (2.2) maintenanceoperations Consulting services - - 9.3 - 9.3 and training (7.7) - (7.7) Recurrent expenditure - - 8.7 - 8.7 (5.3) - (5.3) RefinancingPPF 1.5 1.5 (1.5) (1.5) TOTAL 19.0 2.7 20.1 1.5 43.3 (7.6) (0.4) (14.1) (1.5) (23.6) a/ Amounts financed by IDA are in parentheses. - 24 -
3.21 Procurementof civil works, equipment,vehicles and non-proprietary spares will be carried out under ICB in accordancewith Bank Guidelines. Small contracts for constructionand remodelling of houses and offices aggregatingup to US$400,000will be carriedout bv LCB procedureswhich will include local advertising,public bid opening, specific criteria for bid evaluation and award to lowest evaluated bidder. Works related to road maintenance operations include small and scattered works, which are not likely to interest establishedcontractors. These works estimated at less than US$200,000 each, aggregating to US$800,000, may be awarded through competitivebidding process among small qualified local contractors. The bidding documentswill include descriptionof specific criteria which will be taken into account besides the price; the referenceunit price will be specifiedin the bidding documentsand the b'dderswill be invited to bid by way of discount or increase to the referenceprice. This procedurewill be followed,with the assistanceof the TO, for encouragingthe small domestic firms. Contracts for the supply of goods and materials less than US$200,000 per contract,aggregating to US$3,000,000,will be done by prudent shopping with a minimum of three quotations; items of proprietary nature will be procured directly from original suppliers. Requirements of fuels and lubricantsunder recurringexpenditure for road maintenanceoperations would be procured under borrower's procurement procedures. Consultants for technicaland managerialassistance, studies and audits will be appointedin accordancewith Bank Guidelines. The consultantappointed to set up the PCU and to develop the comprehensivetraining program is expected to be retained to continue providing services for the PCU. Also the joint venture of consultantsappointed to the TO, under SIRP, will be invited to extend their contract to carry out the tasks of the same TO under the present project. All transactionsin excess of US$100,000equivalent will be subject to prior approvalby IDA; this is expectedto cover about 65 percent of IDA financing.
K. Disbursements
3.22 Although the project covers a five-yearperiod, disbursementsare expected to be completed in six years, followingmore closely the historic disbursementprofile for IDA-financedhighway sector projectsin West Africa. The first highway projectwas disbursedin 4.5 years and the second in about five years. The InfrastructureRehabilitation Project is, however, more complex. Initial disbursementswill be greater than historic levels due to refundingof the PPF advanceand the initialdeposit into the SpecialAccount (para 3.23). The Credit is expected to be fully disbursedby December 31, 1995. The IDA Credit will be disbursedagainst the followingcategories, and on the basis of the estimateddisbursement schedule (Annex 3-10). - 25 -
Allocation and Disbursement of IDA Credit
IDA Amount Percent Category Description (USS millions) Financed
1 Civil and building 4.10 1002 foreign works, except sites and services, and 50% local and demonstrationhouses
2 Design and supervisionof 2.00 100o all works
3 Sites and servicesand 1.30 1002 foreign demonstrationhouses and 952 local
4 Equipmentand materials 1.90 100Z foreign except for maintenance operations
5 Technicalassistance, including 4.30 1002 studies and audits
6 Local and external training 0.80 100o courses, including equipmentand supplies
7 Road maintenanceoperations, 5.50 excludingsalaries and wages:
-expendituresbefore 100% foreign Jan. 1, 1991 and 50X local
-expendituresduring 1991 100% foreign and 1992 25% local
-expendituresafter Dec.31,1992 100% foreign
8 Refunding of PPF Advance 1.50 Amount due
9 Unallocated 2.20
TOTAL 23.60
3.23 Disbursementsfor procurementof goods and works costing less than US$20,000 equivalentwill be made against statementsof expenditures(SOE). Other disbursementswill be made againststandard documentation. A Condition of Disbursementfor the sites and services component (Category3) will be fulfillmentof requirementsprescribed in paragraph 3.14 regarding agreed criteria for allocationsof plots and houses. A revolving fund will be establishedfor IDA funds in a SpecialAccount opened in foreigncurrency in a commercial bank. An advance of US$2.0 million from IDA funds into the Special Accountwill be made after the Declarationof Effectivenessand upon receipt of a duly authorizedwithdrawal application,to cover about four - 26 - months of project expenditures. Disbursementsmay be made from the Special Account for all projectexpenditures eligible for IDA financing. The Special Account will be replenishedfollowing applications for reimbursementby MES, togetherwith appropriatesupporting documentation or SOEs, as well as bank statements. Reimbursementapplications will be submitted to IDA whenever accumulated withdrawals amount to US$200,000. The amount of IDA replenishmentwill not exceed the authorizedallocation.
3.24 Counterpartfunds will be made availableby the Governmentthrough its budgetaryallocations, and for road maintenancefrom the Road Fund. MES, with assistanceof PCU, will manage all accountingrecords and will prepare supportingdocumentation and SOEs.
L. Reportingand Auditing
3.25 Quarterlyprogress reportscovering all project componentswill be prep&red by PCU and sent to IDA within one month after the end of each quarter. These reports will include: (a) progress achieved against the agreed implementation and disbursement schedules, and key performance indicators;(b) work programsand cost estimatesfor the coming quarter, and (c) statements for the special account. Consultants engaged under the projectwill prepare brief reportsat the end of each month for the relevant agency or departmentand will forward a copy to the PCU. The main purpose of the reports will be to provide MES or SET managers timely and upcated informationon implementationof projectcomponents, highlighting issues and problem areas, recommendingactions and commentingon progress in resolvring previous recommendations. The PCU will also prepare a project completion report in accordancewith IDA guidelines.
3.26 External auditors, acceptableto IDA, will be engaged under the project to carry out annual audits of the project as well as the Road Fund, the Special Account, Bissau Municipalityand the TCs. Each Audit Report, togetherwith a managementletter, will be sent to the associationnot later than six months after the end of the fiscal year. The management letterwill include observations and suggestions of the auditor regarding possible improvementsby each institutionof its accountingand financialpractices, internal financial management and control and operating procedures. Presently,there is no auditing of the TC's by the Ministry of Finance (MOF) and the income tax is based on the expected profit. This is mainly due to lack of qualifiedpersonnel at the MOF. The absence of standard accounting proceduresmakes the auditing of company accounts more difficult. The MOF is planningthe creationof a CoordinationUnit for public enterpriseswhich will also monitor state participationin semi-privatecompanies. It is expected that an ongoing IDA-financedPublic Enterprise Study will propose guidelinesfor asset revaluationand standardaccounting procedures. During negotiations, agreement was reached on the above reporting and auditing requirements. In addition, each quarter the TCU in SET will examine performanceof the TCs relatingto agreed operationaland financialtargets.
M. EnvironmentalImpact
3.27 A substantialsegment of the projectis devotedto road rehabilita- tion and minor improvementswhich will have no adverse effect on the - 27 - environment, including Guinea-Bissau's forest reserves. Road and street works will result in the improvement of drainage in thi. ricinity and in the restoration of drainage to natural channels and thus avoid erosion and siltation. Wherever possible the proc irement of river vessels, road vehicles and equipment will include appropriate environmental standards for that equipment. The urban component will have a positive impact on the environment by providing properly serviced housing plots and by improving solid waste collection. This should greatly assist in diminishing the chances of further cholera outbreaks as occurred in October 1987. Contract documents for road works will include provisions for protection of workers against health risks, proper maintenance of construction camps and workshops, and environmentally sound measures for disposal of construction materials and draining of borrow areas. Feeder road improvements will be in agricultural production areas to facilitate transport of produce and farm inputs; no improvements have been planned for access to natural non-renewable resources, such as firewood.
3.28 A survey of occupants of existing dwellings will be carried out by the TO in parallel with the detailed design of the sites and services ccmponent (para 3.14). As previously agreed under SIRP, a socio-economic evaluation of the impact of this component, including a tenure plan for present area residents and, if necessary, a resettlement plan in conformity with Bank guidelines, will be completed before any civil works start on the sites. At negotiations agreement was reached that the results of the survey will be sent for IDA review by December 31, 1990, together with an action plan for implementation, including any necessary resettlement. Annex 3-11 outlines the terms of reference for the survey.
IV. FINANCIAL EVALUATION
A. RODOFLUVIAL
4.01 Financial management of RODOFLUVIALimproved significantly with the technical assistance over 18 months program provided under the Bissau Port Project. Management focussed on optimizing the utilization of an aging road and river fleet, increasing staff productivity, improving maintenance facilities and setting up a general and cost accounting system. These goals were, by and large, achieved. RODOFLUVIAL's.ianagement, unlike other TCs, can now produce timely financial statements and annual budgets and assess the profitability of each of the components of its fleet. Effective on-the-job training has also produced several Guinean counterparts which can now take over most of the management and accounting positions with minimal technical assistance.
4.02 Despite all the improvements mentioned above, Rodofluvial's aging road and river fleets remain the main obstacle to bringing it to profitability. Although the company is financially self-sufficient, showing good liquidity ratios (8.7 in 1986, 22 in 1987), in 1987 it had a net loss after taxes of G Peso 107 million. Cash flow has, however, increased from G Peso 38.5 million in 1986 to 161 million in 1987, despite the loss in operations. Unlike other enterprises in Bissau, RODOFLUVIALhas revalued its assets as a function of the devaluation of the GP in relation to the US dollar. There are no standard criteria for asset revaluation from the - 28 -
Minister of Finance, and there was no external auditing of RODOFLUVIAL's finances. Average collection periods have deteriorated from 1.4 months in 1986 to 1.8 months in the first six months of 1988; RODOFLUVIALdoes not have any long-term debts.
4.03 RODOFLUVIAL's future performance will depend on its ability to reduce operating costs and on the growth of traffic transported per unit of the fleet. The investment plan calls for the replacement of its aging road and river fleets by smaller more fuel-efficient urits adapted to the demand characteristics of Guinea Bissau, in order to reduce the down time presently caused by frequent breakdowns, increase utilization and lower operating costs. The investment plana is estimated at G Peso 3,241 million (US$4 million equivalent) over the 1989-1993 period. Financing under the project amount ing to a base cost of US$1.8 million will be required for workshop assistance through TCU in SET, and procurement of ten trucks and one Unal barge; the remainder will be funded through operating profits.
4.04 Based on discussions with RODOFLUVIAL'smanagement the following production and financial targets were set for the enterprise:
PRODUCTIONAND FINANCIALTARGETS FOR RODOFLUVIAL PRODUCTIONTARGETS 1988 1987 1988 1989 19S0 1991 1992 1993 River Freight TKm (millions) 2.74 2.48 2.76 8.00 3.15 3.31 3.64 4.00 X Annual Growth Rate (9.49) 11.29 8.70 5.00 6.08 9.97 9.89 RiverPassenger. PKm (millions) 0.78 6.30 6.52 7.00 8.00 9.00 9.27 9.56 . Annual Growth Rate (12.38) 26.81 33.33 14.29 12.$0 3.00 3.02 Road Freight TKm (millIons) 1.22 1.3J 1.44 1.80 1.93 2.12 2.33 2.61 N Annual Growth Rate 10.66 6.67 26.00 7.22 9.84 9.91 12.01 FINANCIALTARGETS
Return on Net Assets (S.10) (5.2C) (7.00) 4.20 3.70 1.70 3.70 410 OperatingRatio 1.17 1.20 1.16 0.86 0.82 0.80 0.77 0.73 WorkingRatio 0.75 0.67 0.76 0.50 0.49 0.49 0.48 0.46 Deb/EauityRatio 0/100 0/100 0/100 7/93 14/86 24/76 19/81 24/78 Debt Service Coverage 1.09 1.09 1.09 1.09 1.07 1.05 1.06 1.00
4.05 Summary financial projections for the 1989-1993 period are shown below. The financial internal rate of return (FIRR) and economic rate of return (ERR) of the proposed investment are estimated at 26 percent and 25 percent respectively. Details of RODOFLUVIAL'sinvestment plan and financial analysis (1986-93), income statement and economic evaluation are provided in the project file. - 29 -
SUNUARYFINANCIAL PROJECTIONS FOR RODOFLUVIAL (Unit: Millions of GP)
1986 1987 1986 1989 1990 1991 1992 1993 Rovenues 163 506 894 910 980 1,066 1,165 1,262 Net Incom Before Taxes (30) (107) (156) 108 11 62 124 164 Net Ineme After Taxes (30) (107) (166) 108 11S 62 46 33 CurrentAsset* 63 191 379 299 322 348 660 416 Current Liabilities 7 9 41 S8 100 165 363 399 WorkingCapital 56 182 a83 241 222 183 207 1s Net FixedAosets 594 2,048 2,214 2,809 3,012 3,643 3,358 3,e12 Owner's Equity 650 2,230 2,562 2,660 2,772 2,834 2,879 2,913 Medium/Long-Torm Debt 0 0 0 190 462 892 686 915 InvestAents 662 22 10 714 721 682 162 792
B. SILO DIATA
4.06 SILO DIATA is presently almost paralyzed sincc only nine of its 25 vehicles are in service (para 2.13). The technical assistance provided under the Bissau Port Project was able to keep a manual general accounting system going, but no counterparts were adequately trained to rarry on with this simple system; the low level of salaries paid by SILO DIATA made it impossible to retain or to hire qualified candidates. Traffic statistics are unreliable, insufficient and produced too late to be used for managerial purposes.
4.07 Technically, SILO DIATA is bankrupt, with a loss of US$774,000 in 1987. The net loss, which was 1.2 times the revenues in 1985, was already 5.2 times the 1987 revenues. This is explained by the fact that the majority of the debts are in foreign exchange, normally US dollars. Due "o the devaluation of the G Peso in relation to the US dollar (US$1 = 124 G Peso in December 1984 to US$1 = 811 G Peso in December 1987) the debt has ballooned out of proportion. In addition, the revenues decreased considerably due to the low availability of vehicles in the fleet, which was clearly inadequate for the country and the type of services which SILO DIATA must offer.
4.08 A PPF financed study examined several alternatives for SILO DIATA's future, including the total liquidation of the company. Two alternatives called for the rehabilitation of SILO DIATA's fleet and the infusion of technical assistance for management and maintenance, and spare parts over a period of two years. In alternative one, SILO DIATA would only operate urban services i- and around Bissau and one international line to Dakar. In alternat'.ve two, SILO DIATA would continue to operate its urban, intercity and interiuitional services. The possibility of liquidating SILO DIATA was abandoned because, based on a transport survey, it was felt that there are no short-te-.im, viable, private sector alternatives to replace it. Urban fares, whica cost 200 GP per trip, are high when compared with a monthly salary of 18,000 GP (salary of a bus driver) and it is unrealistic to expect private taxis (candongas) to provide such service for a lesser fare. In view of the high number of private entrepreneurs operating intercity services, and - 30 - the fact that SILO DIATA would not be financially viable if it continues to provide such services, consultants recommended that SILO PIATA: (a) cease intercity operations and close down its subsidiaries at Bafata, Canchungo ar,' Buba, and (b) restrict its operations to urban services and one international service to Dakar. The latter will provide hard currency which the company needs to buy spare parts. The financial analysis of alternative one suggests that SILO DIATA would be able to return to profitability with urban tariffs of 150 GP (at US$1 = G. Peso 1,125) per trip through the sale of 10 ticket passes, and will not require any subsidies from the Government, even with a conservative traffic estimate. Consequently, to allow SILO DIATA to function properly and fulfill the role of urban transport which is badly needed in Bissau, the company will have to be restructured financially and technically. Its debt is to be assumed by Government, its assets revalued and an investment program for rehabilitation of its maintenance facilities and buses undertaken. In parallel, assistance to SILO DIATA will be provided under the project through TCU in SET for workshop remodelling and management over a period of 18 months, as well as for on-the-job training of staff. SILO DIATA's restructuring is expected to be completed during this period, with participation of the private sector.
4.09 Based on the above assumptions, the production and financial targets that have been agreed for SILO DIATA, are summarized as follows:
PRODUCTION AND FINANCIAL TARGETS FOR SILO DIATA
PRODUCTION TARGETS 1989 1990 1991 1992 1993
Urban Transport Passengers 3,140 7,150 7,150 7,150 7,150 PKm (1000) 12,560 28,600 28,600 28,600 28,600
Int. Transport Passengers 2,000 4,000 4,000 4,000 4,000 PK (1000) 1,680 3,120 3,120 3,120 3,120
FINANCIAL TARGETS
Return on Net Assets (Z) (2.31) 0.24 0.09 2.90 5.12 Operating Ratio 1.44 0.95 0.96 0.77 0.67 Working Ratio 0Q56 0.43 0.44 0.46 0.46 Deb/Equity Ratio 56/44 45155 29/75 0/100 0/100 Debt Service Coverage 1.04 0.90 0.88 0.85 1.05
4.10 From these targets, and based on assumptions that have been agreed for SILO DIATA, the summary of financial projections for the 1989-1993 period are shown below. The investment plan is estimated at G Peso 1,831 million (US$1.5 million equivalent) over the 1989-1993 period. Financing will be required under the project amounting to a base cost of about US$0.9 million for a support vehicle, spare parts and workshop remodelling and mechanical assistance over 18 months through TCU in SET; the remainder will be financed through operating profits. The FIRR and the ERR on the investment package proposed are estimated at 19 percent and 13 percent respectively. The economic evaluation for SILO DATA is conservative because it does not include - 31 - time savings and the impact of reducedwork absenteeism. Details of SILO DIATA's investmientplan (1989-1993),its balance sheets (1986-1993)and financial statementare provided in the project file.
SUMMARY FINANCIALPROJECTIONS FOR SILO DIATA
(Unit:Millions of G4')
1986 1987 1988 1989 1990 1991 1992 1993
Revenues 66 132 375 838 838 836 838 Net Income (113) (699) (306) (152) 20 6 172 282 Current Assets 70 99 53 98 228 245 223 137 Current Liabilities 228 668 129 15 432 433 436 68 Working Capital (158) (569) (76) 84 (203) (187) (213) 69 Net Fixed Assets 178 156 1,195 2,104 2,003 1,588 1,378 1,378 Owner's Equity (134) (832) 1,119 967 986 993 1,165 1,447 Medium/ Long-TermDebt 153 419 0 1,220 814 408 0 0
Investments 0 0 0 1,237 340 26 52 176
C. JAPG
4.11 JAPG has received considerable technical assistance under the Bissau Port Project. The results of this assistancewere mixed because of lack of coordination,delays in provisionof handling equipment,inadequate performanceof the experts,and indifferentsupport from SET. Nevertheless, the general accountingwas set up, and financial statementsfor 1987 and a budget for 1989 were also produced. Technical assistancewill be provided under the project for two years through TCU in SET to provide the necessary continuity and train JAPG counterparts,to provide workshop assistance and to assist JAPG to reorient its management practices (para 4.13).
4.12 JAPG posted a net income of G Peso 19 million in 1987, but was projecting a loss of G Peso 117 million in 1988. Liquidity ratio was 1.8 -n 1987 and the debt/equityratio was 15/85. JAPG has not done a revaluation of its assets. The cash flow was 60 percent of its operating expenses. Average collectionperiods arrevery high (8.3 months); this is mainly due to payment arrears from GUINEMAR,the national shipping agency,which accounts for 30 percent of JAPG's revenues (para 2.34). GUINEMAR'saverage payment period to JAPG went from 5.5 to 12.6 months in 1987. The average stock period was 16.1 months in 1987. The net income in 1987 was G Peso 3 million or only 0.3 percent return on sales. The net income after extraordinary gains was, however, G Peso 19 million due to exchange rate gains of about G Peso 24 million, which offset losses from previous years of about G Peso 8 million.
4.13 To improve its financial performance, JAPG needs a drastic reductionof its operatingcosts by increasingthe productivityof staff, by improvingthe handling rates and by changingits managementorientation. The - 32 - intention of SET is to transform JAPG into a public company and to assist it in entering into a management contract with an entity experienced in port operations.
4.14 Based on discussions with the present maz.agementand on the above- mentioned program, the following production and financial targets were set for JAPG: PRODUCTION AND FINANCIAL TARGETS FOR JAPG
PRODUCTION TARGETS 1986 1987 1988 1989 1990 1991 1992 1993
Non Regular Freight Ships Number 57 62 74 83 93 104 116 130 Z Annu-al Growth -- 8.8 19.4 12.2 12.0 11.8 11.5 12.1 Regular Freight Ships Number 30 39 49 56 65 75 86 99 Z Annual Growth -- 30.0 25.6 14.3 5.1 15.4 14.7 15.1 Tankers Number 6 15 15 16 17 17 18 19 Z Annual Growth -- 15.0 0.0 6.7 6.3 0.0 5.9 5.6 Fishing Ships Number 129 225 350 385 424 466 512 564 % Annual Growth -- 74.4 55.6 10.1 10.1 9.9 9.9 10.2
Port Activity Tons (1000), other than POL 99 126 150 165 182 200 221 244 Z of Annual Growth -- 27.3 19.0 10.0 10.3 9.9 10.5 10.4
Productivity Gains Hours of Waiting/Ship 48 86 60 51 43 37 31 27 Hours in Berth/Ship 130 160 160 147 135 125 116 107
FINANCIAL TARGETS
Net Return on Assets -- 1.21 -1.93 -0.04 0.53 0.75 1.38 2.21 Operating Ratio -- 1.00 0.74 0.76 0.68 0.65 0.61 0.57 1 .torkingRatio -- 0.42 0.31 0.23 0.22 0.21 0.20 0.20 Debt/Equity Ratio -- 85/15 81/19 85/15 83/17 81/19 79/21 75/25 Debt Service Coverage -- 1.31 1.43 0.99 0.98 0.97 0.97 0.98 Tariff Increase (real terms) Parking Tax (X) 0.0 +10.1 +9.0 +9.3 +8.8 Berth Tax 0.0 +8.0 +7.7 +7.4 7.1
4.15 From these targets, and based on assumptions that have been agreed for JAPG, the summary financial projections for the 1989-1993 period are given below, details of which are provided in the project file. The investment plan proposed over the 1989-1993 period is estimated at G Peso 1.8 million ;US$1.5 million equivalent). The investment plan includes the port handling equipment which is to be provided with financing from BADLA. Assistance will be required under the project, to manage the workshops through TCU in SET, for an eighteen month period. Within this period JAPG is expected to have entered into a management contract. The remaining - 33 -
investmentswill be financed through operating profits. The FIRR on the proposed investment package is estimated at 33 percent, and the ERR is estimated at 43 percent. Detai1 s of JAPB's balance sheet and income statements (1987-93), economic evaluation and estimated operating results (1988-89) are provided in the project file. Financial projections are summarizedb(low:
SUMMARY OF FINANCIALPROJECTIONS FOR JAPG (Unit:Millions of GP) 1987 1988 1989 1990 1991 1992 1993
Revenues 919 2,278 3,761. 4,227 4,652 5,134 5,674 Net Income Before Taxes 19 (117) (12) 217 604 1,051 1,580 Net Income After Taxes 19 (117) (12) 160 211 368 553
Currents Assets 825 2,274 1,882 1,815 1,561 1,660 1,914 Current Liabilities 455 459 2,345 2,373 2,398 2,428 2,460 Working Capital 369 1,815 (463) (558) (838) (768) (546) Net Fixed Asset 1,176 4,258 32,622 30,781 29,176 27,378 25,613 Owner's Equity 1,319 4,929 4,917 5,07, 5,288 5,656 6,209 Mediumi Long-TermDebt 226 1,144 27,242 25,146 23,050 20,954 18,858
Investments 267 264 30,310 116 410 240 380
D. TAGB
4.16 Based on available information,consultants (paras 2.18 and 2.33) estimated that TAGB regional services lost the equivalentof US$408,500 in 1988. Since 64 percent of revenues 'n the regional service are in foreign exchange,while 90 percentof the expenses incurredare in hard currency,the loss for the countrywas estimatedat over US$600,000. The intercontinental link with Lisbon and Paris,which is undertakenin associationwith EAS, lost an estimated US$1,320,000 from June to December 1988 and approximately US$445,000 between January and April 1989. From June 1988 to April 1989, TAGB's share of these losses amounted to US$881,700. The loss in foreign exchange is, however, estimated at US$1,200,000since 33 percent of TAGB revenues in this link are in pesos. Overall, with regional and intercontinentalservices included, consultants estimated that TAGB was losing an average US$150,000 per month. The estimated recent operating resultsof TAGB up to April 1989 and a preliminarybalance sheet at end-1988 for TAGB are provided in the project file. This balance sheet was estimated by technical assistance,financed through the PPF, to set up an accounting system Lor TAGB.
4.17 Since mid-1989, formal agreementbetween TAGB and EAS has lapsed, but the intercontinentaloperation continues to be run by EAS with the understanding that all revenues and expenses in foreign exchange are the - 34 - responsibilityof EAS, while all revenuesand expenses in G. Pesos are the responsibilityof TAGB. ThL Governmentaffirmed during negotiationsthat the present arrangement with EAS was not causing foreign exchange losses to Guinea Bissau, and that EAS would have the right to cease operationsat any time; flightswere reportedto be at a high load factor. At negotiationsit was agreed that, until the change in TAGB's reorganizationis effective (paras 2.18 and 3.09): (a) the Government will not enter into any new agreements with EAS or any other airlines for internationalor regional services; and (b) TAGB will not expand its regional services beyond the present weekly schedule of two flights to Dakar, one to Conakry and one to Praia. It was also agreed that the cost of air ticketson TAGB flightswill remain at the same level as competingairlines: Guinean nationals purchasing tickets in Guinea Bissau to pay in G. Pesos at the currentexchange rate, and foreignnationals to pay in foreign currency.
V. ECONOMIC EVALUATION
A. Economic Returns
5.01 The main benefit of the transport sector components under the project would be a more efficient and cost-effectivetransport system that would permit a higher level of economicactivity in the country. The project would remove physical and regulatory constraints in transport, reduce transportationcosts for goods and passengers,increase port productivityand will effectively help exports, farm production and marketing, and the mobility of people. Moreover, it will enhance the efforts started under previous projects in training of skilled and semi-skilledpersonnel. The main benefits of the urban component would result from a significant improvementof overall sanitary and environmentalconditions through more efficient solid waste collection,as well as from a major contributionto raising the living conditionsof the poorer segmentsof the urban population in both Bissau and secondary centers through the continuing support for sites-and-servicesoperations and the implementation of demonstration projects for low-costhousing solutions. The quantifiablebenefits, mainly transportcomponents will be based on transportcost savings due to road and river crossing improvements.
5.02 The project will produce other substantial benefits which are difficult to quantify, and will also directly contribute to poverty alleviation. Some of these intangiblebenefits are as follows: (i) rural road rehabilitation, and possible promotion of more sustainable and affordablelow-cost forms of transport,will particularlyassist the poorer sections of society in reducing transportationcosts, in improving farm productivityand in reducinghead-loading which is a burden generallycarried by women and children; (ii) employmentcreation both directly in road works and maintenance,and indirectlythrough expansion of farming and other economic activities. Above all, the project will provide a contribution towards creating in Guinea Bissau the human resourcesneeded to operate and maintain transportand urban infrastructure.
5.03 The economic rate of return (ERR) for road rehabilitationand maintenancecomponents (about59 percentof project cost) is estimatedat 54 percent, ranging from 82 percent for paved roads to 30 percent for unpaved - 35 - roads (Annex 5-1). Based on the computationsmade for a similar component included in the SIRP, the ERR for the servicingof housing plots (sites-and- services) will evolve around 25 percent. The estimated ERRs for the investment programs of the public transportcompanies to be assisted under the project are given in Chapter IV: the ERR of RODOFLUVIAL'sinvestment package is estimated at 25 percent and JAPG's investmentpackage shows an estimatedERR of 43 percent,while SILO DIATA's is estimated at 13 percent. The overall ERR estimatedfor about 72 percent of project costs is about 48 percent, with a net present value (NPV) of about US$33 million at a 12 percent discount rate (Annex 5-2).
B. Project Risks
5.04 The project has been designed to reduce transportcosts in Guinea Bissau, to stimulatethe private sector involvedin infrastructureworks and transportation,to contribute to poverty alleviationby providing better access to agriculturalproduction areas, and to improve urban er.vironments through improvedsolid waste collectionand making availableserviced housing plots for a large segment of the population. The main risks are: (a) non- compliance with the agreed transport policy and managerial and financial restructuringof TCs; (b) Government'sreluctance to facilitate private sector participationin works and transportation;and (c) delays in project implementationdue to constraintsin the absorptivecapacity of MES.
5.05 The Governmenthas given its commitmentto the implementationof the transportpolicy and has agreed to measures to select and fund infrastructure projects with emphasis on rehabilitation and maintenance programs. Furthermore,detailed action plans will be preparedfor privateparticipation in each of the public transportcompanies and agreementhas been reached on operationaland financialtargets for each of the TCs, as well as criteria for adjusting their tariffs periodically. The establishmentof a Project CoordinationUnit in MES and a TransportCoordination Unit in SET will ensure that implementationof this multi-facetedproject is well managed and that performanceof TCs are constantlymonitored. The TechnicalOffice in MES, set up under SIRP, will provideexpertise for design and supervisionof works and management of road maintenanceunder the project, and the comprehansivt training program will better prepare personnel in the public and private sectors to undertake the various jobs made available in the infrastructure sectors. - 36 -
VI. AGREEMENTSRE&CHED AND RECOMMENDATION
6.01 During negotiations,agreement was reached or confirmed on the followingpoints:
(a) Implementationof the TransportPolicy (para 2.03);
(b) Terms of referencefor invitinginternational aviation companiesto create a new aviation compar.yin Guinea Bissau (para 2.18);
(c) Preparationof an action plan for Bissau Municipalityby June 30, 1991 (para 2.22);
(d) The 1990-92 infrastructuresectors investmentprogram as well as: (a) preparationfor IDA review by September30 of each year until completionof the project,of three year rollingurban and transport investmentplans, as well as annual budgets for the coming fiscal year, and physicaland financialperformances of the previousfiscal year; (b) ensure that infrastructuresector rehabilitationand maintenance programs have priority over new construction and upgrading; (c) only undertake infrastructure investments with estimated ERR greater than 12 percent; and (d) agree with IDA any proposed investmentover US$1.0 million equivalent (para 2.28);
(e) Measures to (a) raise or establish specific taxes on road users, (b) improve collection of road user charges and timeliness of deposits in the Road Fund (RF), and (c) increase RF revenues to cover 20 percent of programmed road maintenance through 1990, 30 percent in 1991 and 1992, 40 percent in 1993 and 1994, and 50 percent thereafter (para 2.30);
(f) Operationaland financialtargets for each of the public transport companies, and criteria for adjusting periodicallytheir tariffs (para 2.31);
(g) Government to actively continue discussionswith private companies to form a viable bus company (para 2.32);
(h) Restructuringof GUINEMAR by June 30, 1991, and for GUINEMAR to repay by June 30, 1990 all debts to JAPG as of March 1, 1990, and to repay all future bills owed to JAPG within a period of four months of the date of billing (para 2.34);
(i) New transportregulations (para 2.36);
(j) Terms of Referencefor technicalassistance (para 3.06);
(k) By March 31, 1991, the Government to present IDA with specific action plans for involvingprivate participation in each of the TCs; changes required in ownership or management of the TCs to be implementedby January 1, 1992 (para 3.09);
(1) Outline of ParticipationAgreements with TCs (para 3.18); - 37 -
(m) Reporting and auditing requirements,and quarterly reviews by the TCU in SET of performanceof each TC relating to agreed operational and financialtargets (para 3.26);
(n) By December 31, 1990, the results of the survey of occupants of existing dwellingson land under the sites and services component to be sent for IDA review, together with an action plan for implementation,including any necessary resettlement(para 3.28); and
(o) Until TAGB's reorganizationis effective,the Governmentwill not enter into any new agreementswith EAS or other airlines,and TAGB will not expand its regional services;the cost of air tickets on TAGB flights to be at the same level as competing airlines (para 4.17).
6.02 The Conditions of Effectivenessare as follows:
(a) Undertake measures satisfactoryto the Association to enable an increase in revenues for the Road Fund to cover agreed amounts for road maintenanceexpenditures (para 2.30);
(b) Implementationof the revisedsystem for adjustingtariffs for each public transportcompany (para 2.31);
(c) Assumption of SILO DIATA's foreign debt by the Government (para 2.32);
(d) Publicationof new transportregulations (para 2.36); and
(e) Appointmentof the coordinator,accountant and trainingadvisor for the Project CoordinationUnit in MES (para 3.04);
(f) ParticipationAgreements betweenMES and each TC (para 3.18).
6.03 The Condition of Disbursement for the sites and services and demonstrationhouses (Category3) will be agreementupon the criteria to be used to allocate the plots and houses (para 3.23).
6.04 Subject to the above agreements and conditions, the project is suitable for a Credit to the Governmentof Guinea Bissau in the amount of SDR 18.5 million (US$23.6million equivalent),on standard IDA terms.
AFTIN November 6, 1989 - 38 - Annex 2-1 Page 1 of 2
GUINEA BISSAU
INFRASTRUCTUREREHABILITATION PROJECT
TransportPolicy - Summaryof Key Principles
The Ministry of Social Equipment (MES) and its State Secretariat of Transport(SET) have preparedand adopteda TransportPolicy which defines the objectives of the transport sector in Guinea Bissau and the strategy proposed to attain them. The main objectiveof the TransportPolicy can be summarizedas the provisionof low-costtransport for the movement of goods and passengers in the country in support of all other sectors of the economy,at the lowestcost to the taxpayer. To attain such an objectivethe followingkey principleswere adopted.
A. Infrastructure
(i) Emphasis on rehabilitationand maintenance of existing infrastructurerather than on constructionof new facilities;
(ii) Adoptionof economiccriteria (at least 12X for the estimated rate of return - ERR) for any proposedinvestment; (iii) Preparationof three-yearrolling plans for investmentin the sectorwith propereconomic evaluation of each of the proposed projectsand of the overallannual program.
B. Operationsand Maintenanceof Equipment
(i) Strengtheningof transportoperations in the variousmodes by the training of Guinean nationals to gradually assume positionsoccupied by expatriates;
(ii) Adoption of spare part policies which will maximize the availabilityof existing equipment; and of scheduling and marketingpolicies which will maximizethe utilizationof such equipment;
(iii) Strengtheningof the maintenancefunction in all modes by rehabilitating and modernizing existing workshops, facilitatingthe access to spare parts and hiring technical assistance,whenever required,to take full advantageof such facilities.
C. Management
(i) Promote commercially-orientedmanagement of transport companies(TCs) and emphasizethe principleof financialself- sufficiency;
(ii) Adopt cost recovery policies, including cost-based tariffs which.are frequentlyupdated to account for inflation and devaluationof the currency; - 39 - Annex 2-1 Page 2 of 2
(iii) Encourage the gradual takeover of existing TCs by the private sector either through public bids or by joint ventures which will ensure a commercial orientation;
(iv) Preparation of annual operational and financial targets for the TCs with a provision for government budget compensation when the Government decides to impose a social tariff;
(v) Training of Guinean Managers who would be gradually twinned with the technical assistance and would eventually replace the latter.
D. Financial Management and Accountability
(i) Strengthen the financial management of the TCs and their accounting procedures;
(ii) Audit annually the accounts of the TCs;
(iii) Promote the financial restructuring of TCs which provide services that cannot be immediately replaced by the private sector;
(iv) Liquidate TCs for which there is an economically viable private sector alternative.
E. Regulatory Aspects
(i) Promote a policy of quasi-deregulation in the sector by decreasing the Government's interference in the following areas:
- market entry
- licensing
- route reguiation
- tariff setting and updating;
(ii) Encourage the participation of the private sector by gralually introducing tariff deregulation whenever there is sufficient competition between private transporters;
(iii) Facilitate access to foreign exchange for the acquisition of spare parts;
(iv) Enact strict safety regulations to prevent the increase of transport accidents.
F. Donor Coordination
(i) Promote donor coordination meetings with participation of bilateral and multilateral organizations. Annex 2-2 Page 1 of 2
GUINEA-4SSAU
INFRASTRUCTUREREHASILITATION PROJECT
Status of the Road Network In 1907
Paved Latert. Earth Roade Province. Condition Roads Roads modern Normal Total , __= *_=
North
km X km X km X km X km X
Good 151 48 - - 6 100 - - 156 16 Fair 52 17 15 100 - - - - 67 7 Poor 111 35 - - - 691 100 802 78 Subtotal 814 100 15 100 5 100 691 100 1026 100
East Good 51 s0 114 77 - - - - l65 17 Fair 90 54 24 16 I 100 - 122 3 Poor 27 16 10 7 - - 625 100 662 70 Subtotal 168 100 148 100 S 100 625 100 949 100
South 0 - oCod 10 19 ------10 2 Fair - - 60 57 7 100 4 1 71 11 Poor 52 61 45 43 - - 404 99 581 87 Subtotal 62 100 lO 100 7 100 488 100 862 100
Overall Network ______Good 212 39 114 43 6 .26 - - 331 13 Fair 142 26 99 3n7 16 76 4 - 260 10 .Poor 190 a5 56 20 - - 1600 100 2046 77 Total 644 100 266 100 20 100 1804 100 2636 100 * sou--====
Source:IIES.
J - 41- Annex 2-2 Page 2 of 2
RoadCondition and TrafficVowums
A. Paved Road.
TraffIcVolum_ (vpo)
Road Condition 60 s0 - 100 100 - 260 260 - = _5= Ocod 19 km S1 km 180 km lb km Fair 23 km - 2 km km Poor 93 km 18 km 26km 47km
D. Unpaved Roads
Traffic Volum (vpd)
Road Condition 10 10 - W s - 100 100
Cood -7 km 48 km - Fai;; 14 km 248 km 78 km 24 km
Poor 662 km eo3 km 324 km 19 km
Source: Consultant'. Report, December1M Annex 2-3 -42 - Page I of 1
GUINEA BISSAU
INFRASTRUCTURE REHABILITATION PROJECT
JAPG: PORT OF BISSAU TRAFFIC IN 1986 AND 1987 ------(in metric tons)
A. IMPORTS
PRODUCT 1986 1987 VARIATION 19861198
RICE 24,992 42,296 + 69 FLOUR 3,067 6,261 + 115 GRAIN, SORGHUH 1,782 . 1,067 - 40 SALT . - SUGAR 1,666 4,867 + 192 CEMENT 18,941 17,596 - 7 PETROLEUM 1,697 33,558 . + 95
TOTAL 96,039. 129,393 + 35
B. EXPORTS
PRODUCT 1986 198-7 VARIATION 1986/198
CASHEW NUTS 5,922 7,098 + 20 TIMBER 3,177 4,324 + -36 GROUND NUTS . 2,051 3,294 + 61 PALM-DEMDEN. 7,606 5,384 - 29
TOTAL 19,978 23,411 + 17 Annex 2-4 - 43 - Page 1 of 1 GUINEA BISSAU
INFRASTRUCTURE REHABILITATION PROJECT
1990-92 Infrastructure Sectors Investment Program
Proj. Source of US$ Millions No. Description Financing Total 90 91 92
P17/18 Bissau-Prabis-Biombo BADEA, SF, KF 16.0 2.0 2.8 6.n
P20 Bambadinca-Buba AfDB, IDB 18.6 3.5 3.8 4.0
P22 S. Vicente-MPack EDF/Italy 18.7 3.2 3.0 4.0
P54 Mampata-Fronteira IDB 0.2 0.2 - -
P25 Second Roads Project (Cr.1473-GUB) IDA, KF 13.6 1.5 - -
T30 IRP (excl. maint.) IDA, others 33.8 7.4 9.6 7.2
- SIRP (infrast.only) IDA, others 11.4 1.7 4.2 5.5
A25 N.r. Rural Roads EDF 3.0 1.5 1.5 -
A27 N. Rural Roads SIDA 1.2 0.4 0.4 0.4
P53 S. Rural Road UNDP 0.9 0.-3 0.3 0.3
P26 Secondary Bridges EDF 5.5 1.0 2.5 2.0
T28 Bissau Port Equip. BADEA 2.5 1.5 0.5
T5 New.Bissau Port SF, OPEC, KF 19.6 1.0 - -
T8A79/12 Bissau and River Ports IDA 21.5 1.4 - -
T32 Bissau Airports AfDB 4.5 1.5 1.5 1.1
T31 Nat. Meteorological Service UNDP 1.& 0.5 0.4 -
P70 Bissau Sewerage AfDB 8.3 1.1 1.6 2.0
P9 Bairros Improvement Holland 2.9 0.3 0.3 0.3
P60 House Construction Holland 0.6 0.1 0.1 0.1
TOTAL 30.1 32.5 31.9
Source: MES - 44 - Annsx 2-5 Page 1 of 4 GUINEA BISSAU
INFRASTRUCTURE REHABILITATION PROJECT
A. ROADTOILS
(in C Peso)
TOLLS TYPESOF VEHICLE TOLLS _____..______NORMAL SPECIAL
JUGUDUL-BAMBADINCA LIGHT 200 400 MIXED 340 600 HEAVY- 2 AXLES 2000 4000 HEAVY- 3 AXLES 10000 20000
BAFATA LICHT 100 200 MIXED 200 400 HEAVY- 2 AXLES 1000 2000 HEAVY- 3 AXLES 6000 10000
S. STRUCTUREOF FUEL PRICES
(in 0 Po o/liter)
MAY1988 JANUARY1989
GASOLINE DIESEL . GASOLINE DIESEL
CIF PRICES 173 1 6 216 160
TAXATION
CUSTOMDUTIES 108 9 129 46 CENERALTAX 9 9 11 8 TRAFFIC TAX 62 8 66 8 ROADFUND TAX 9 - 11 - CONSUWTION TAX 140 264 - (AD VALOREM)
SUB TOTAL. 313 26 481 62
DISTRIBJTION COSTS as 68 se8 PROFIT 61 6 6S 10
CONSMER PRICE 605 275 680 300
($US aC Peo 1118) ($US 3 0 Peso 1460)
Sourc-: MES, DICOL Annex 2-3 5 - Page 2 of 4
C. Evolution of tho Fleet
1904 1065 1906 1067 1006 1909 1990 1001 1002 1993 Gasoline poeorod vehicles
- Light - Government 176 197 212 218 2J2 247 202 279 297 317 - Private 528 547 572 607 685 760 764 16CC 2570 4360 - IT * CD 132 194 205 216 220 242 257 272 289 308 Subtotal 633 938 909 1041 1090 1249 1304 2107 31CO 4976
- Hevy -Governont 16 15 1S 11 9 7 7 7 6 6 - Private 6 5 4 4 4 4 3 a 2 1 - IT * CD J 2 2 2 2 2 1 1 1 1 Subtotal 26 22 19 17 15 1J 11 11 9 7 Total 914 9060 1008 1056 1111 1262 1316 2110 3166 4982
Diesel PoweredVehicles
- Light - Governmnt 333 404 462 014 722 349 0"0 1118 1252 1402 - Private 0C1 1255 1614 1904 2556 3997 4710 5610 6268 6126 - IT * CD 282 358 483 603 761 675 1003 1157 1273 1400 Subtotal 1516 2012 2579 3121 4089 5271 6714 7765 6813 8928
- Heavy - Government 126 149 174 1906 232 269 312 349 891 437 - Private 047 1054 1116 18O7 1492 1707 1916 21609 2503 2840 - IT + CD 1C8 176 221 260 200 272 276 284 304 325 Subtotal 1220 1379 1510 1757 1090 2246 2560 2802 310 3602 Totol 2744 3j91 4089 4376 6029 7190 0"20 10567 12011 12530
D. Evolution of Annual Registration of Vehicles
1964 19865 196 1907 1993 1909 1990 1991 1992 1993
Covernment 153 102 128 134 161 170 192 216 244 274 Private 027 809 867 462 636 1031 142S 1378 2406 3022 Temporary rmport 160 i8n 100 135 169 174 182 10 194 206 Diplomatic Corps 43 60 60 38 22 3S 39 28 42 36 Total 692 710 744 689 1204 1408 1836 2313 2886 3538
Source:MES.
I~~~~~~~~~~~~~~~~~~~ I~~~~~ GUINEA BISSAU: INFRASTRUCTUREREHABILITATION PROJECT , ==== 3= =-== …======4===_=
E. EVOLUTIONOF ANNUALFUEL CONSUMPTION (1000 liters)
------.------__------__------1984 1986 1988 1987 1988 1989 19"0 1991 1992 1993 ------__------__------QASOI NE
- SUPER 3817 4349 4461 4374 6663 * 7666 9436 11499 13966 18796
- NORMAL 2372 1509 752 ------
------__--__------TOTAL GASOLINE 8189 5858 5203 4374 8553 * 7655 9436 11490 13996 1670O DIESEL ("ASOIL)
- VEHICLES 11158. 12484 12325 14401 16038 * 189020 20615 23475 27180 32390
- ENERGY 8304 7059 5626 8398 1O"O6 a
TOTAL DIESEL 19522 19534 178560 22799 26638U
* Provisional Values Sourc-: MES, DICOL
F. ROADFUND ADMINISTRATION COSTS ------(C Pasos million)
------__---- TYPE OF COST 1989 1990 .1991 1992 1993 SEVICES 13.0 16.3 29.3 62.7 94.9 STAFF 18.2 31.2 56.2 101.2 182.2 AMORTIZATION 2.4 2.5 2.6 2.5 2.5 OTHERS 1.0 1.6 2.8 5.1 9.2
TOTAL IN C PESOS X 196 32.8 61.5 90.8 161.6 288.8 : TOTAL IN US* X 1s 3 22.6 35.5 62.6 111.4 199.2
1 US$ = 0 Peso 1460 t
Sourco: MES J- CVINEA 01S^
ItRASTRICTLE REHABILITATION PROJECT
G. S;a ston of Rood f.nd Ruwunu. (1969-19931
19919------1992 ------1993 ------19t99 ------1990 ------TAX VALUE OTY 1141TTAX VALUE 1U*4 TAX VALUE UTY UnI TAX VAU£E CTY UNI4T TYr OF TAX PT wnT TAX VALUE QT 3 to b G 0m1O LX10 .h GP 0o10 l XIOYSvh 1X1Cs:Vk OP O7106 IXYi CP0 QPXO.V>. 10e I
tlS 0 106.9 11490 52.0 597.5 1390 57.2 796.6 14740 RSOLDIETAX 7555 11.0 03. 94I6 47.3 446.0
CDltSATI TAX 17260 0 210.5 12000.0 101.9 10420 14400.0 10.0 12164 tS424 6000.0 27,1 6757 10000.0 67.6 t495 - LV 2007 21600.0 6O.S 3167 460.0 109 5 10000.0 19.9 2194 20.00.0 48.9 2457 24000.0 59.0 - 1W 19m SB Am gal-TN" ~ SJ 1.
MAT"" TAX 5140.0 392 0 7526 6200.0 46 1 5716 86000.0 206.6 667 430.0 26.0 756I - LV 4420 0.0 0.0 10360. 0 am I 2463 792QO.0 176.6 2607 0400.0 242.3 J - hV 197 0.0 0.0 2194 60000.0 151.6 ZMS kl-rTiTLS BRASiS. 4 IA 4,X - CLOY" TAX 1757 a 04400.0 694.1 2069 55950U.0 1239.2 2668 65i645 0 160 430000.0 378.5 1206 495000.0 596.5 1642 - LV SW6 3.9E.06 19.9 854 42E.06 IS0 0 662.9 210 8.2E.06 696.4 2S6 3.56E. 690.1 - lt4 201 2.9EdO uJ an" S1-TOTALS 4IL imj 0.0 0a0 0 0.0 0.0 0 0.0 0.0 0 TOLLS 20.4 0 0.0 0.0
MA^L FAO -^_. TUTU_ -VBi _ .LJ_ _ .
Freo 1660 "a %le 2 o CIF C;rflu ietea10 IO000 (LV) _r 20 (1) GP Compensation Too 8600 (LV)te 60000 (HV) 0 lo icreiss iA co&" too inmul i*epr... Of 26 tir. circ.Ii.ieu0n sad COOe tion tax Need toile abolish"d i 1960 :1 LV - lit ,ohicle tI X heav-ia vyoicle
se.4m*_r 1966 GUINEA BISSAU INFRASTRUCTUREREHABILITATION PROJECT MES Coordinaton of tho Infrastructure Rehabilitation Project
- Ot hSET'
F_~~~~~~~~~~~~~~~~~~~~~~~~~O D(mp t~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1
LEW ~~ ~ ~~~~
+ RODOFL~~~~~~~thrLik
£K/w4t8?7 SEU45EMAR GUINEA BISSAU INFRASTRUCTURE REHABILITATION PROJECT Organization of. PCU
I Executive ICaomnitteI
PCU Coordhator
1:.^" I ~~~~~~~~~~~Screara
Accounting Technical TrauiingI
EK/W46b77b
o~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o
3QQ
ao I {DN - 50 - Annex 3-2 Page 1 of 2
GUINEA BISSAU
INFRASTRUCTUREREHABILITATION PROJECT
Assistance to MES' EngineeringLaboratory (LEGUI)
1. The Guinea Bissau EngineeringLaboratory (LEGUI),under MES, received limited equipmentand technicalassistance under the Second Roads Project. The LEGUI is now capable of carrying out basic soils tests on a modest scale, although only the most elementaryasphalt tests. Its buildings require refurbishingand its staff, which presentlydoes not include an engineer,needs technicalassistance for on-the-job training in carrying out laboratoryand in-situ soils and materials testing.
2. The projectwill strengthenLEGUI's capabilityto undertake soils and materials testing, and research studies on the use of local materials for roads (mainly laterites)and for buildings,as well as logistic support for LEGUI to carry out its tasks. Technicalassistance will be provided throughan agreementwith the PortugueseNational Laboratory of Civil Engineering(LNEC).
3. LEGUI's main experimentalwork under the project will be the study of the relationshipbetween the characteristicsof laterite deposits and the performanceof pavementsbuilt with these laterites (Attachment1). Thi- experimentalwork will consist of two phases which may overlap: (a) monitoring performanceof selected sections on the existing road network; (b) undertakingexperimental low-cost asphalt paving along the 16 km section between Caium River and Buruntuma, for which the paving options will be chosen in coorditationwith a similarprogram being carried out on the North Bank road in the Gambia.. This coordinationbetween the research effo.rtsof Guinea Bissau and the Gambia will benefit both countries in providinga iarger base for applying the research results.
4. The cost of experimentallyasphalting the Pitche-Buruntumaroad is estimatedat US$20,000 pe; km, and is includedunder the road rehabilitationprogram. The base cost in US$ of LEGUI's program is estimatedas follows:
(a) Laboratoryequipment and vehicles 280,000 (b) Training (local and abroad 35,000 (c) Building refurbishing 30,000 (d) Materials 215,000 (e) Technical assistancethrough LNEC 150,000 Total US$710,000
5. Tho technicalassistance to be provided to LEGUI by LNEC will include: (a) a research engineer to assist in the analysis of existing techn'icalliterature, selection of road sections for testins and monitoring,design of experimentalsections to be built under the project, drawing up a plan for data collection,storage and analysis, and preparationof progress and final reports (18 m-m); and (b) hosting - 51 - Annex 3-2 Page 2 of 2 trainees from LEGUI to. inter alia, carry out specialmaterial tests and finalize reports.
6. LEGUI's program should enable it to carry out the most usual soils and materials tests in the laboratoryand in-situ, includingbitumen testing. The programwill also develop LEGUI's capability to undertake experimentalwork in the roads field, from data collection to analysis and reporting. The program'smain benefit will ultimatelybe lower costs of roads and housing (building)works in Guinea Bissau, with a more rational use of locally availablematerials.
AFTIN November 1989 - 52 - Annex 3-2 Attachment 1
GUINEA BISSAU INFRASTRUCTUREREHABILITATION PROJECT
Outline Terms of Reference for Study on Paving Laterite Gravel Roads
Introduction
1. Recent research tends to indicate that the surface course of some laterite gravel roads shows a significantincrease in relative density and in bearing capacity after it has been subjectedto traffic and rains. The likely factor that has been suggestedto rationalizesuch a behavior is the initial plastic shrinkageof the lateritegravel combined with the subsequentkneading action of the traffic. It may thereforebe possible to upgrade roads to paved standardsoy simply resealingthe existing roads. The possible cost savingsare significant.
Obiective
2. The objectiveof the study are to evaluate the feasibilityfor low-cost upgradingof laterite gravel roads and to prepare the specificationsfor constructionand monitoring of performance.
Scope of the Work
3. The Consultantwill:
(a) evaluate briefly the potentialand the scope of upgradinggravel roads in Guinea Bissau on the basis of the availabledata on materials and traffic and through field inspectionof the roads;
(b) locate one or several road sections that could become test sections for the study. The road sections could be recently regraveled,or soon to be regraveled road sections;
(c) specify the schedule of tests required prior, during and after the constructionof the test sections. Also, specify the traffic data to be gathered;
(d) establish the parameters that will be used to monitor the test sections and to evaluate its performance;
(e) propose a schedule for the test section constructionand the monitoring program togetherwith estimates of cost and the supervisionrequired;
(f) monitor performanceof the test sections;and
(g) evaluate the economic benefits of upgradingthe road section(s) to paved standardsby simply resealingthe existing sections. Annex 3-3 - 53 - Page 1 of 3
GUINEA BISSAU
INFRASTRUCTURE REHABILITATION PROJECT
Budget Estimates
USs X
1. Training costs 831,040 61.3
1.1 Local training by foreign organi'ations 384,620 28.4 1.2 Local training by local organizations 135,900 10.0 1.3 Financial support for participants 85,320 6.3
Local Training 605,840 44.7
1.4 Training abroad 174,800 12.9 1.5 Travel for study & training (short courses) 50,400 3.7 225.200 16.6 2. Establis'hi'entof a Human Resource and Training ManaRement Unit 19,000 1.4
3. Vehicles and equipment 70,000 5.2
4. Consumables 25,000 1.9
5. Reconstruction & rehabilitation of facilities 60,000 4.4
6. Coordination & management of Training Plan 350,000 25.8
TOTAL 1,355,040 100.0 TRAININGPLAN BUDGETESTIMATES. BY COMPONENT Indicators
Number of Hours/ Participants/ Hours of C olnto Cost/Hr. Cost/Parti- Cost/Act- Activities Activity Activity Training IS ) training/US$ cipant/US$ ivity/USS
1. -TRAINING COSTS 1.1 -Local training by foreign org. 48 64.640 384.620 5.95 572 8.013 1.1.01-Managementof Public Admin. 2 156 20 6.240 32.760 5.25 519 16.380 1.1.02-IntegratedManag eme nt course 2 120 20 4,800 25.200 5.25 630 12.600 .1.03-ProjectAppraisal, management and supervision 2 84 20 3,360 17.640 5.25 441 8.820 '.1.04-Supplie%& InventoryNgmt 2 60 ZO 2.400 12.600 5.25 315 6.300 .1.05-financialflot & MZgt Control 2 108 20 4.320 22.680 5.25 567 11.340 '.1.0b-Acctng& Govt. Budget Mgmt 3 30 20 1,800 9.450 5.25 157.5 3.150 11.07-Mach& Vehicle Maint Org & systems 2 120 20 4,800 25.200 5.25 630 12.600 1.1.OR-HumanResource Management 2 60 20 2.400 12.600 5.25 315 6.300 '.1.09-lrainingof works directors 2 180 20 7,200 37.800 5.25 945 18.900 1.1.10-Trainingfor const & pub wks spvsrs 5 150 20 15,000 78.750 5.25 787.5 15,750 1.1.11-trainingfor machinery supervisors 2 150 20 6.000 31,500 5.25 787.5 15,750 1.1.12-Adv.training for each. operators 16 25 5 . 2,000 33,600 20.32 508 2.540 (a) hours/machine:320 7.040 1l1.13-Introductionto Data Processing 3 60 12 2.160 18.900 8.75 525 6,300 '.1.14-Proqraming& Operating Systems 3 60 12 2,160 18,900 8.75 525 6io0o
'.2 -tocal training by local org. 43 146.000 135.900 0.93 158 3.160 1.Z.01-RefresherCourse for Auto Mechanics 10 120 20 24.000 36.000 1.5 180 3,600 > '.Z.02-Accounting:First Phase 5 180 20 18,000 24.300 1.35 243 4.860 '.2.03-Accounting:Second Phase 5 180 20 18,000 24.300 1.35 243 4.860 1.2.04-StorageFacility Mgt & Organization 3 100 20 6.000 8.100 1.35 135 2.700 1.2.05-Strengtheningof Basic Education 20 200 20 80.000 43.200 0.54 108 2,160
1.3 -Financial support for participants 85,320 1.3.01-Traininqactivities (130640H:4)US$2 65,320 1.3.02-Strengtheningof education (80000H:4) US$1 20.000
1.4 -Training activities abroad 174.800 5.141 5,141 1.4.01-Gradcourse in transportationplanning 3 30.300 10,100 10,100 54 students/US$450/month 24,300 6 trips (US$1000) 6,000 1.4.02-Courseor short course on road transportationoperation 2 7.400 3,700 3.700 12 students/US$450/month 5,400 Z trips (US$1000) 2,000 1.4.01-Courseor short course on river transportationoperation 1 3.700 3.700 3,700 6 students/US$450/uonth 2,700 I trip (US$1000) 1.000°° 1.4.04-Coursefor masters of coastwisevessels 10 28.000 2,800 2,800 60 students/US$300/month 18.000 -10 trips (US$1000) 10.000 o 1 1.4.05-Coursefor maritimepilots 5 60.000 12,000 12.000 " 150 students/US$300/month 45.000 IS trips EUS$1000) IS*000 Component Number of -Hours/ Participants/ Hours of gj Cost/Hr. Cost/Parti- Cost/Ait- Activities Activity Activity Training (USSI training/USS cipant/USS ivity/USS
1.4.08 -Course for marine engineers 10 37.000 3.700 3.100 90 students/US$300/month 27,000 10 trips (US$1000) 10.000 1.4.07 -Course or short course on port operations and instruction 3 8.400 2.800 2.800 18 students:US$300/month 5400 i trips IUS$l0OO) 3,000 1.5 -Study travel 50,400 2.400 2.400 1.6.01 -21 trips (14 days) 21x14xUS$°00 29,400 1.6.02 -21 trips (14 days). round trip 21aUS$100 21,000 Subtotaltraining costs 831,040 2. -ESTABLISHMENTOF A HtUAN RESOURCE AND TRAININGIUNAGEMENT UNIT 2.1 -tocdl personnel costs 12.000 2.2 -O t*e materials and equipment 7.000 L' SubtotalTraining managemant Unit .stablishUWnt 19.000 a. -VEHICtES AND EQUIPMENT a.l -Vehicles 20.000 8.2 -Equipment 50.000 Subtotal vehicles and *qu- 10.000 4. -CONSUMABLES- Subtotal 25.000
6. -RECONSTRUCTIONAND REHASILIIATION OF fACILITIES - Subtotl 60,000
6. -COORDINAIIONAND MANAGEMENT OF THE PLAN 6.1 -lechnical assistance (34 man-monthsof consultancy) Cfees and subsistence allowances) 340.000 O.2 -Iraveling (1OKUSSIOOO) 10.000 Subtotal technical assIt anqe 350.000 TOIAL 1. 3'5, 040 L) : mx I.J .
Ml . - 56 - Annex 3-4 Page 1 of 4
GUINEA-BISSAU
INFRASTRUCTUREREHABILITATION PROJECT
Road InfrastructureProgram
!
Introduction
1. According to the Classificationof the Road System of Guinea-Bissau approved by the Government in 1986, the network is comprisedof 1,048 km of national roads, 526 km of regional roads and 1.062 km of local roads, totaling 2,636 km. The network consists of 544 km of paved roads and 2,092 km of unpaved roads.
2. A detailed survey of the road network done by consultantsin 1987 indic&tedthat 152 of the roads were in good condition,172 in fair condition,and 68Z in poor condition. An estimate of present road conditionsis given in Attachment 1.A.
Objectives
3. The main objectivesof the Road InfrastructureProgram under IRP are: (a) rehabilitationof paved and unpaved roads, includingriver crossings, that provide essentialaccess between agriculturalproduction areas and river ports or consumptioncenters; (b) improvementsto feeder roads in the importantagricultural areas in the South; and (c) consolidatingthe road maintenanceeffort initiatedunder the Second Roads Project. The primary objectiveof the road infrastructureprogram, which goes beyond the scope of IRP, is to have over 90 percent of the paved and lateritegravel roads in good conditionby 1998; however, only a few earth roads,which support little traffic will have been improved.
Physical and InstitutionalAccomplishments
4. To accomplishthe above mentioned objectives,the project will: (a) rehabilitateabout 182 km (33 percent) of the existing paved road network and about 175 km (8 percent) of the existing unpaved road network, i.e., about 14 percent of the classified road network; (b) rehabilitateabout 3 km of urban roads in Bissau and 5 km in other priority centers; (c) support the road maintenanceprogram over five years (1990-94); (d) rehabilitate about 130 km of priority feeder roads; and (e) strengthenthe General Directorateof Roads and Bridges (DGEP) through the Technical Office (TO) to manage the road infrastructureprogram.
5. The Second Roads Project4 (Cr. 1473-GUB)has addressedboth financial and institutionalconstraints to improvingthe conditionof the road network, but considerablymore remains to be done. As a result of the proposed project, togetherwith road rehabilitationfinanced by other donors, about 55 percent of the road network is expected to be in good conditionby January 1995. The estimatedcondition of the road network upon project completion is given in Attachment1.B. - 57 - Annex 3-4 Page 2 of 4
Annual InvestmentRequired
6. An annual investmentof about US$12.5 million equivalenton road maintenance and rehabilitationwill be necessary to reach the proposed imp.ovementto the road network conditionwithin the next five years. Afte..about 1998, followingthe rehabilitationprogram, regular rodd maintenancerehabilitation and upgradingcosts decline to about US$5.0 million equivalentper year, to maintain the network in stable state. The Road Fund should then contributeabout US$2.5 million annually, or 50Z of the total needs.
Paved Road Rebabilitation
7. About 180 km of paved roads will be rehabilitatedunder the project by applying an optimal rehdbilitationalternative to each road section. ranging from a simple resealingto major rehabilitationof selected sections. The Highway Design and MaintenanceStandards Model (P')M-III)was used by MES and consultantsto make comparativecost estimatesand economic evaluationsof differentmaintenance options for the entire road network. The rehabilitationalternative with the lowest discounted total cost was sought for each road section. The evaluationwill be updated for selected sections during project execution,using the most recent information availableon traffic, road conditionand unit costs.
8. At an estimatedbase cost of US$26,500/km.the rehabilitationof paved roads will cost about US$4.8 million. All works will-be contracted out under ICB. The paved road sections selected for rehabilitationunder the project, as well as the correspondingcosts and timetable for implementation,are given in Attachment 2.
Rehabilitationof Urban Roads
9. Sections of two importantstreets (Av. Pansau N'Isna and Av. das Nacoes Unidas) in Bissau, totaling about 3 km will be rehabilitated, erosion control and drainageworks undertaken,and sidewalksconstructed. Seven main streets in other priority urban centers totaling about 5 km will also be rehabilitated. Besides improvingtraffic circulation,this work will control the environmentallyhazardous erosionproblem and provide safe conditions for pedestrians. Street rehabilitationworks have estimated base costs of US$250,000/kmin Bissau and US$50,000/kmin other centers; works will be executed by contractunder ICB.
Unpaved Road Rehabilitation
10. About 80 percent of laterite gravel roads and 96 percent of earth roads were in fs4.r to poor conditionin January 1989. This generallypoor condition on unpAved roads is seriouslyaffecting access to agriculture areas. As for paved roads, HDM-III was also used to make comparativecost estimates and economic evaluationsof differentmaintenance options for the entire unpaved road network. An optimal rehabilitationstrategy, ranging from regravelingto reconstruction,will be applied to an estimated 175 km of unpaved roads, providing all-weatherlaterite gravel surfacing. All works will be contracted under ICB. At an estimatedbase cost of - 58 - Annex 3-4 Page 3 of 4
US$17,000/km,this componentwill cost about US$3.0 million. The unpaved road sections selected for rehabilitationunder the project, as well as the correspondingcosts and timetablefor implementation,are given in Attachment3.
11. During implementationLEGUI will undertakeexperimental work, in coordinationwith a similarprogram in the Gambia, to determine the relationshipbetween the characteristicsof lateriteused in road structuresand pavement performance,with the objectiveof finding low-cost and economicellyviable alternativesto pave rehabilitatedgravel road sectionswith trafficover 100 vpd. Experimentalasphalting of about 16 km of Route Nl. between Caium river and Buruntumaat the border with Guinea (Conakri),will be carrriedout under the project, at an estimatedbase cost of US$20,000/km,or a total of US$320,000.
Ferry Barges and Ramp Reconstruction
12. The Port RehabilitationProject included the reconstructionof eight river ramps, and the Second Roads Project the procurementof a ferry for Bolama crossing. The increasedeconomic activitiesnow require for reconstructionof four additionalriver ramps: two long (90 m) ramps at Che Che (up to 4-6 m water level differencesbetween rainy and dry seasons) and two single ramps at Bolama; and rehabilitationof a ramp at Cobumba. in addition,the small ferry barge at Che-Chewill be replacedby a 20-25 ton open deck barge. Base cost estimatesfor this componentan US$200,000 for the new barge and US$800,000for the ramp reconstruction.
Road MaintenanceProgram
13. DGEP establishedthree regional road brigades under the Second Roads Project for carrying out routine and some periodicmaintenance. These brigadeswhich a.so maintain local aerodromesand ferry crossings,will be supportedunder the project throughprovision of imported spare parts, petroleumproducts and materials, and replacementof equipment for road maintenance. A small brigade for patching paved roads, especiallyin Bissau will also be equipped under the project. Road brigades of MES are receivingfood for work through the World Food Program, which presently benefits about 570 workers and provides incentivesto improvingproduction and reducing absenteeism. The projectwill also finance contractedroad maintenancetasks which are expected to graduallyincrease through training of local entrepreneurs. The productiontargets for road maintenance activities for each year between 1990 and 1994 are as follows:
ROAD MaintenanceActivities Unit 19 1991 19 19 19A: Bus cleaningand greascutting he 320 410 430 530 C40 Potholepatching - unpavedroads km 600 760 600 900 920 Potholepatching - pavedroads km 490 660 560 760 760 Ditchand culvertcleaning km 990 1,310 1,360 1,680 1,680 Lightgrading km 1,200 1,600 2,200 2,500 2,600 Heavinggrading km 75 60 70 100 100 Letorit.regravollng thous.sq. *. 166 140 165 200 200 - 59 - Annex 3-4 Page 4 of 4
14. The annual cost of road maintenanceoperations (excludingsalaries and wages) over five years is expected to increase from about US$1 million in 1990, to about US$2.0 million in 1994 as MES expands its maintenance activities to cover most of the road network. Pro4ectionsof annual road maintenancecosts are shown in Attachment 4. The breakdownof base costs (in thousand USS) for road maintenanceover the five-yearproject period (1990-94)are expected to be as follows:
Spare parts, etc. for equipmentmaintenance ..... 1,600 Tires ...... 400 Fuel and lubricants ...... 2,600 Materials ...... 1,000 Contractswith small firms or communities ...... 2,100 Maintenanceof ferries ...... 240 Total 7,940
Equipment to be purchasedunder the project to replace aged units and establish a ro&d patching brigade will amount to about US$1.7 million (Attachment5).
TechnicalAssistance to DGEP
15. Technical assistanceto DGEP for managing and executing road maintenancestarted in 1985 under the Second Roads Project. Because of the acute shortage of trained staff and concentrationon improvingroad conditions and maintenanceunder the project,.keyassistance will be continued over the project period throughMES' TechnicalOffice (TO), amounting to 200 m-mn,comprising of two engineers, short-termworkshop specialists,and two roads technicianswho will also supervisecontracted work. Classroomand on-the-jobtraining will be provided under the general direction of MES training advisor in the Project CoordinationUnit (PCU).
Summary of Funding Required
16. The base cost of the road infrastructureprogram under IRP is summarizedas follows: uSOCO Paved road rehabilitation...... 4,820 Urban road rehabilitation...... 1,000 Unpaved road rehabilitation.(incl. paving 16km) 3,025 Urban and rural road maintenance (1990-94) 7,940 ReplacementEquipment . .1,700 Ferry barge . .200 Ramp reconstruction . .800 Technical assistanceand road studies. 2,000 Total base cost 21,485
17. The road infrastructureprogram included in the project involves an investmentover a five-yearperiod equivalent to an annual outlay of US$1,660/kmof which US$590/km is for maintenance. Although these figures are relativelymodest, the programwill bring about significant improvementsto the country'sroad network. The impact of the program on road conditions shown in Attachment 6. - 60 - Annex 3-4 Attachment 1
GUINEA BISSAU INFRASTRUCTURE REHABILITATION PROJECT
Road Infrastructure Program
A. CONDITION OF THE ROAD NETWORK IN JANUARY 1988
Paved Laterite Eartb Condition Roads Roads Roads Total
km z km Z km Z km Z
Good 268 49 60 20 75 4 403 15
Fair 93 17 198 64 161 9 452 17
Poor 183 34 50 16 1.548 87 1,781 68
Totals 544 100 308 100 1,784 100 2,636 100
B. ESTIMATED CONvITION OF THE ROAD NETWORK IN JANUARY 1995
Paved Laterite Earth Condition Roads RoaCs Roads Total
km z km 2 km I km x
Good 515 63 580 72 343 34 1,438 55
Fair 253 31 205. 25 222 22 676 26
Poor 52 6 20 3 450 44 522 19
Totals 820 100 801 100 1,015 100 2,636 100 GUINEA-BISSAU
INFRASTRUCTURE REHABILITATION PROJECT
Road Infrastructure Program
Rehabilitation of Paved Roads
Road Length Cost Jan. Construction time -Nber Designation Class km US$1,000 1990 1991 1992 1993 1994 1995
Ni Biss. Airport-Jugudul III 47 1,650.0
N2 Rio Mansoa-Saf im III 8 160.0 _ a
Ni Jugudul-Bambadinca III 62 1,240.0 -
R9 Bambadinca-Xime III 11 220.0
R7 Catio-Rio Cumbija III 18 450.0
L35 Jemberem-Cadique III 11 220.0
R3 Mansoa-Bissora III 25 750.0
TOTAL 182 4,820.0 102 252 252 251 15t Cost distribution per year US$1,000 482.0 1,205.0 1,205.0 1,205.0 723.0 w > n x m if I CT' GUINEA-BISSAU
INFRASTRUCTURE REHABILITATION PROJECT
Road Infrastructure Program
Rehabilitation of Unpaved Roads
Road Length Cost Jan Construction time Number Designation Class kn US$1,000 1990 1991 1992 1993 1994 1995
L24 Nl - Galomaro V 24 420.0
Nl Rio Caium-Buruntuma IV 16 * 640.0
R4 Contuboel-CambaJu V 40 800.0
12 Hampata-Guilege V 30 450.0 _____ N
R7 Buba-Catio V 52 520.0
R8 Nova Sintra-S.Joao V 13 195.0
TOTAL 175 3,025.0 102 251 252 251 151 Cost distribution per year USS1,000 302.5 *756.2 756.2 756.2 453.8
* Section where the Olow cost paving' solution will be tested at a cost of US$320,000.
I> B K0 n - 63 - Annex 3-4 Attachment 4
GUINEA BISSAU INFRASTRUCTURE REHABILITATION PROJECT
Road Maintenance Costs
(in USS thousand - December 1989 prices)
PAVED UNPAVED TOTALS PERIODIC CURRENT PERIODIC CURRENT COST YEAR KM USS KM USS KM US$ KM USS USS
1989 - - 544 489.6 - - 494 446.6 936.2 1990 - - 469 440.1 76 304.0 504 453.6 1197.7 1991 - - 552 496.8 62 248.0 760 684.0 1428.8 1992 - - 555 499.5 70 280.0 802 721.8 1501.3 1993 - - 760 684.0 96 364.0 902 611.8 1879.8 1994 - - 760 684.0 105 420.0 921 828.9 1932.9 1995 - - 760 684.0 120 480.0 906 815.4 1979.4. 1996 55 625.0 705 634.5 liO 440.0 950 855.0 2754.5 1997 105 1575.0 655 589.5 115 460.0 1005 904.5 3529.0 1998 - - 760 684.0 120 480.0 1060 954.0 2118.0 1999 - _ 760 684.0 140 560.0 1100 990.0 2234.0 - 64 - Annex 3-4 Attachment 5 Page 1 of 1
GUINEA BISSAU INFRASTRUCTURE REHABILITATION PROJECT
Road Equipment Requirements for Road Maintenance
Description No. Prices Amount (US $) (US $)
Bulldozer (140 HP) 1 140,000 140,000 Ripper 1 30,000 30,000 Wheel loader (2 cu m) 2 100,000 200,000 Rubber-tired roller 1 60,000 60,000 Tractor (90 HP) 1 24,000 24.000 Motorgrader (120 HP) 2 110,000 220,000. Dump truck (7 cu m) 7 60,000 420,000 Dump truck (4 cu m) 1 35,000 35,000 Water tanker 2 65,000 130,000 Towed tanker (4,000 1) 5 14,000 70,000 Patching truck (1,500 1) 1 45,000 45,000 Towed patching unit (1,000 1) 1 15,000 15,000 Manual vibrating roller (1 T) 4 10,000 40,000 Lubrication truck 1 80,000 80,000 Generator (30 kw) 1 20,000 20,000 Pick-up 1 15,000 15,000 Motorcycles 6 1,500 9,000 Bicycles 20 100 2,000
Sub Total 1,545,000
Spare parts of tools (10Z) 155,000
Total 1,700,000 - 65 - Annex 3-4 Attachment 6 Page 1 of 1
Road Network Condition A. In January 1989
Length in km 2000,11
15''00
100
Good Fair Poor
EMPaved =Qrsvel r Earth MTotal
B. Estimated in January 1995
Lenoth in km 2000f
I 600
1000
Good Fair Poor
Mg Paved E Grvotl Earth Total ae1ree; Consultant' mpart April 1Me9 - 66 - Annex 3-5 Page 1 of 9
GUINEA-BISSAU
INFRASTRUCTUREREHABILITATION PROJECT
Pilot Feeder Roads Program
Objectives
1. The long-termobjective of the feeder roads program is to improve and maintain the Guinea Bissau feeder road network based on sound technical and socioeconomiccriteria, applying low-costssolutions to rural access and transportneeds relying to the maximum extent, consistentwith cost- efficiency,on local resourcesin order for the developmentto be sustainable.
2. The program's immediateobjectives are to:
(a) create a capacitywithin the DirectorateGeneral of Roads and Bridges (DGEP) and a number of private contractingfirms to effectivelyapply low-costmethods of feeder roads improvementand maintenance using locally-available resources to the maximum extent, consistentwith cost-efficiencycriteria;
(b) develop a capacity at the village level to actively participatein the planning and implementationof feeder roads improvementand maintenance;
(c) achieve reliable levels of accessibilityconsistent with the level of activitiesin the respective feeder roads areas of influence; and
(d) identify low-cost,non-motorized means of transportwith scope for introduction,or wider usage than at present, in Guinea Bissau in general and in the project area in particular.
Project Description
3. To achieve the objectives,the Pilot Feeucr Roads Program includes the followingcomponents:
(a) improvementby contractorsusing labor-basedmethods of about 130 km of feeder roads in the South, and as an option, improvementto about 50 km mostly unidentified feeder roads in the Southeastof the country;
(b) spot improvements to a limited number of tracks, trails and foot paths linking up to the improved feeder roads in the South,
(c) maintenance of the improved feeder roads;
(d) study on low-cost, non-motorized means of transport; and - 67 - Annex 3-5 Page 2 of 9
(e) technical assistanceto: (i) DGEP for the implementationof the pilot program; (ii) train government staff, contractorsand coms.unitiesin the implementationof labor-basedfeeder roads improvementsand maintenance;and (iii) carry out the study on low-costmeans of transport.
Improvementof Feeder Roads
4. The existing feeder roads network is generally adequate in extent, however, about 90 percent of the country'sfeeder roads are in poor conditiondue to deficienciesin initial constructionstandards and subsequent insufficiencyof maintenance. In the project area in the South of the country, most feeder roads provide access for motor vehicles in the dry season, but vehicle operating costs are high. In the rainy season (July-September),many feeder roads are not accessibleat all. Low-cost, non-motorizedmeans of transportsuch as bicycles and donkey carts are seen ii,the North of the country, but not in the South. The poor accessibility in the South, in particular,results in depressed levels of goods and person transportat high cost, and in very low prices paid at farmgate for agriculturalproducts. The South of Guinea Bissau has the potential for substantiallyincreased agricultural production, but in large part, due to the poor accessibilitj,the agriculturalproducts of the area are almost exclusivelyconsumed locally.
5. It is envisaged during the four-yearimplementation period to improve about 130 km of existing roads in the South (Attachment1) to all- weather 4 m wide feeder roads with adequate side drainage and permanent drainage structures. It is assumed that the average hauling distance for laterite will not exceed about 3 km. The works would be carried out using labor-basedmethods supportedwith light equipment,pedestrian roller for compaction,and tractor-trailercombination for transportof selected materials. With prevailingwage levels (GP 40,000/moor US$28/mo for unskilled labor) these methods are cost-effective.1/
6. Domestic contractorswould be engaged to carry out the improvement works. Since they have virtuallyno experiencein road works, substantial training would be required. Four to five contractorswould initiallybe selected for training during the first constructionseasons (October 1990 - June 1991). The contractorswould make available technicians,foremen and some skilledworkers to be trained partly in the classroom,but mainly on the site. During the first year it is envisaged to constructabout 10 km feeder roads which should include all main work activitieswhich may be encounteredin the subsequentyears. Of the trained contractorsthree would be selected and awarded contractsfor the second constructionseason based on unit rat s fixed on the basis of experiencesgained during the
1/ At an exchange rate of GP 1,400 - US$1.00 which has been used in this annex. GP 40,000/mo includes incentivepayment, the official minimum salary is GP 32,000/mo (US$23/mo)only. - 68 - Annex 3-5 Page 3 of 9
first year training. In the third and fourth constructionseasons contractorswould be awarded contractsbased on bidding.
7. During the constructionseason it is estimated that each contractoron averagewould need to engage about 15 skilled laborers and gangmen, and 110 unskilledlaborers. The contractorswould have to bring part of the key staff from the head office in Bissau. For certain times of the year it is unlikely that the contractorscan recruit all unskilled labor within walking distance of the sites. In such cases camps would be establishedand labor, to come extent, recruitedin towns in the South where unemploymentand underemploymentexist.
8. It is unlikely that the contractorswould have surplus equipment which could be used for the works. Therefore,the project will procure all essentialequipment required (Attachment2). After the first year of training the contractorswould be able to acquire the equipmentthrough a hire-purchasearrangement where MES would deduct form the contractors monthly statementsequipment amortisation and interestcharges which would be paid directly to the bank where the contractorshave received loans for the hire-purchasearrangements or to escrow accounts set up for this purpose.
9. A small feeder roads imprdvementprogram in the Southeastof the country would be identified. Since the main accessibilityconstraints in that area are the poor conditionof the Che-Che to Beli and Che-Che to Boe roads, these should first be improved. Thereafterthe feeder roads program could eventuallybe expanded to also cover spot improvementsto feeder roads in the Southeast. These works have not been included in the cost estimates for the pilot program.
Maintenanceof Feeder Roads
10. Feeder road maintenancehas for many years been grossly inadequate. As a result the feeder roads deterioratedto a conditionwhere they are not maintainable. Under the pilot program the improved feeder roads will be maintained and a system for their continuedmaintenance will be set up.
11. In order to facilitateraintenance, the improvementswill be made in such a way as to reduce subsequentrequirements for maintenance; temporary structureswill be replaced by permanent ones, risks of flooding will be reduced by providing culverts and raising embankments,road side drainagewill be provided etc.; and at locationswhere erosion is neverthelesslikely to occur, laterite depositswill be left at the road side. The maintenancewould be carried out using labor intensivemethods supplementedby the passing, twice a year, of a towed grader procured under the project.
12. The labor-intensiveroutine maintenanceworks would be contracted to communitiesand petty contractors. The about 10 km road improved during the first constructionseason would in the second season be used for - 69 - Annex 3-5 Page 4 of 9
training of MES staff, communitiesand petty contractors;in the following year an additionalabout 36 km roads improved during the second year would also receivemaintenance, and in the final project year a total of about 80 km would be maintained. In the followingyeer, the entire 130 km should be maintained.
Spot Improvementsto Trails and Footpaths
13. Within the project area it may safely be assumed that the major part of the person and goods transport related to agricultureand household activitiesare carried out on foot. The small farmerswill, to a large extent, use the existing network of trails and footpathswhich is vital to them. Therefore,the program would include spot improvementsto some trails and footpaths. The improvementsmay include primitive stream crossing structures,narrow and low embarkmentover swampy areas, etc. It is not envisaged that the cost of the works, which would be carried out by labor-intensivemethods using partly self-helplabor, would exceed US$40,000. In all about 40 km - 60 km trails and footpathsmay be improved.
Study of Low-Cost Means of Transport
14. Presently, animal carts and bicycles are, to some extent, used in the North of Guinea Bissau. In the South and Southeastof the country, low-cost,non-motorized means of transportare not being used; motorized vehicle and head loadingprovide the only means of transport. The lack of animal transport is attributedto social obstaclespaired with a lack of animal health services.
15. A study will be carried out to: (i) review present use of low-cost means of transport in Guinea Bissau; (ii) analyze to which extent the use of existing means could be expanded and new means introduced;and (iii) develop a plan of action for a rational,economically justified and sociallyacceptable expanded role for low-costmeans of transport. The study will be coordinatedby SET through its TransportCoordination Unit.
TechnicalAssistance and Training
16. Technicalassistance will be provided to MES to: (i) assist in implementingthe improvementand maintenanceworks in setting up systems and procedures for contractingof the works; and (ii) train MES staff, contractorsand communities. Certain training activitieswould be carried out in collaborationwith the SIDA-financedIntegrated Rural Development Project (Zone 1), where government staff are being trained in feeder roads construction. In total, it is envisagedthat about 54 man-months of technical assistanceconsisting of an engineer/planner/specialistin labor- based constructionmethods (42) and a training specialist (12) would be provided. In addition two, UN volunteers (civil engineers)would be engaged for a total of about 65 man-months as well as ad hoc short-term consultantsin the areas of local tools manufacturing,contract documents and procurement,etc. The technicalassistance would be phased out at the - 70 - Annex 3-5 Page 5 of 9
end of the third constructionseason, at which time local staff. contractorsand communitieswould have been adequatelytrained. During the final constructionseason, it is neverthelessenvisaged that a consultant during two short missions would assist MES to ensure that the implemented systems and proceduresbecome sustainable.
17. UNDP is expected to finance the technicalassistance and consultancyservices for which the InternationalLabor Office (ILO) would be the executingagency. Adequate counterpartstaffing would be provided by MES to enable full technologytransfer during the project period. Outline terms of referencefor the technicalassistance and counterpart requirementsare given in the UNDP Project Document for technical assistance.
Project Implementation
18. MES would have responsibilityfor implementationof the pilot feeder roads program. The technicalassistance would be attached to D1JEP which would implementthe improvementand maintenanceworks. Procurement of project equipmentwould be coordinatedby the General Secretaryof MES through the TechnicdlOffice (TO).
19. Physical implementationof improvementworks are expected to start by October 1990 and to be completedby June 1994. Attachment3 shows the implementationschedule.
Project Costs
20. The cost of the pilot feeder roads program, net of taxes, duties and contingenciesis estimatedat US$2.6 million equivalent. Cost estimates, in December 1989 prices, are summarizedbelow and detailed in Attachment 2.
21. The cost of feeder roads improvementis estimatedat US$1O,400lkm (excludingthe cost of technicalassistance) which is reasonable,in particular consideringthat contractorsare being trained. The cost of routinemaintenance is estimated at about US$2501kmper year.
22. The World Food Program (WFP) would provide food rations for governmentstaff and contractors'labor. Community labor might also receive food aid in particular if they carry out work on a self-helpbasis (improvementsto trails and footpaths,etc.). The cost of food aid has not been included in the cost estimates.
Justification,Benefits and Risks
23. The pilot feeder roads programwould introduce labor-basedfeeder roads constructionand maintenancemethods using domestic contractorswhich would be trained. Under prevailingsocioeconomic conditions in Guinea Bissau, in comparisonto conventionalequipment-intensive feeder roads - 71 - Azmex 3-5 Page 6 of 9
Local ForeiRn Total - (in USS thousand)
I. Improvementto about 130 km Feeder Roads by Contract
For contractors: - equipment - 331 331 - spare parts and tools 20 150 170 Subtotal 20 481 501
For MES to support contractors: - equipment - 112 112 - spare parts _ 30 30 - operation and maintenance equipment 5 20 25 Sub-total 5 162 167
For civil works contracts: - gross total (641) (707) (1,348) - net total (excl. depr- ciation. spare parts etc.) 616 201 817 Total I 641 844 1.485
II. Improvementto trails and footpaths 10 30 40
III.Maintenanceto feeder roads
- equipment 21 21 - spare parts and operation 1 8 9 - hand tools 2 4 6 - labor 10 10 Sub-total 13 33 46
IV. Vehicles for MES
- vehicles (two 4VD) 38 38 - spare parts 12 12 - operation and maintenance 3 20 23 Sub-total 3 70 73
total I - IV 667 977 1,644
V. Technical assistanceand training UNDP financing 96 864 960
GRAND TOTAL 763 1,841 2,604 - 72 - Annex 3-5 Page 7 of 9
constructionmethods, labor-basedmethods: (i) are cost-effective; (ii) require less fcreign exchange (the improvementworks have a foreign exchange componentof 53 percent against about 85 percent for comparable equipment-intensivemethods); (iii) require less capital outlays for equipmentacquisition and are thereforemore accessibleand less risky to domestic contractors(when they have been trained);and (iv) create about three-to-fourtimes as much employment,and injects three-to-fourtimes as much money into the local economy.
24. The South of Guinea Bissau has the potential for substantially increasedagricultural production which presently is kept at a depressed level, inter alia, due to poor accessibility. The improvementwork to be implemented,together with improved river transportetd., would greatly reduce transportcosts and enhance farm gate prices for agricultural produce.
25. The program is not without risks; however these have been minimized through the design of the program and its flexibility. The main areas of uncertaintyare labor availabilityand capacity of domestic contractors. The populationdensity in the South is low, not much more than 10 inh./sq.km even though it is considerablyhigher in the vicinity of the feeder roads. Therefore,it is envisagedthat contractorsmight have to establishcamps for labor recruitmentin towns.whereunemployment exists.
26. A study by consultants (CESO)has identified four medium-sized domestic contractorswho, through their general experience and technical and administrativecapacity, eventually after training,could qualify as road contractors. Also, it is known that a few national senior engineers might wish to start a contractingfirm in the roads sector. In order to stimulatecompetition between domestic contractors,it is intended to train four or preferably five during the first year, even though the subsequent works would only require three contractors. However, MES intends to increasinglyuse contractorsfor road maintenanceactivit 4is. During the training period the contractorswould be paid at cost for their staff participatingin the training to avoid any commitmentstowards contractors as to su'bsequentaward of contracts,and to eliminate risks on the part of the contractors. The availabilityand capacity of the domestic contractors will primarilydepend upon their alternativework opportunitiesfirst of all in the capital. Should the domestic contractorsnot have the desired capacity, or their bids be too high, it would be feasible to carry out part of the improvementworks on force account using the same labor-based technology,engaging petty contractorsto the maximum extent for works within their ccmoetence. In this way it would be feasible to reach the physical targets bc the program, while the targets for the developmentof the domestic contractingindustry would not be fully met.
PreparatoryWork
27. The following project preparatory work is to be carried out before start up of works: - 73 - Annex 3-5 Page 8 of 9
a. Road Inventory
For each feeder road a simplifiedinventory should be carried out which would:
(i) identifyphysical featuresswidth, sharp curves, steep gradients, surface type, drainage structures;
(ii) road condition:road surface, road drainage
(iii) general: terrain, natural soils, laterite deposits, villages/settlenmentsalong roads and within easy access to road, main agriculturalactivities;
(iv) improvementsto be carried out: simplifiedbill of quantitieswith separate identificationof drainage 1 structures. l (b) Labor AvailabilitySurvey
The purpose of the survey is to identify labor availabilitywithin walking distance from the work sites. It may be assumed that-the improvementworks would be carried out by.three domestic contractorswho, during nine to 10 months of the year, shwuld engage an average of about 110 unskilledworkers. About 14 km of ! roads are to be improvedby each contractoreach year. To assess labor availability:
(i) assess total populationin each villagehsettlementand based on average sex and age distributionestimate male population in age group 15 to 55;
(ii) establishan agriculturalcalendar for typical areas and, through discussionswith local communities,assess percentage of communitypopulation which at various times of the year would be availablefor work on the roads without substantialnegative effects for other productive activities;
| (iii) review to what extent labor would be willing to work on the roads, engaged by contractorsand paid wages, possibly supplementedby food aid;
(iv) based on the above, assess to what extent labor requirements can be met by recruitinglocal unskilled labor. To the extent sufficientlabor may not be recruited in that way, would it be feasible to recruit supplementarylabor in small towns in the area and provide camps for them near work I sites? - J4 - Annex 3-5 Page 9 of 9
(C) Selectionof feeder roads for initia. two Year construction
In the first constructionseason (Oct. 1990 - June 1991) it is intended to carry out demonstrationand training activitiesusing a total of about 10 km road section(s)covering typicalwork conditions in the project area. In the followingconstruction season three contractorswould carry out about 42 km improvement works. To the extent feasible,works for the demonstrationand training activitiesshould be selected so as to avoid logistic and labor availabilityproblems. For the second year construction program road sections should be selectedwhich facilitate continuedcontractor training.
28. The above preparatorywork, includingreport writing, could be carried out within a period of about five weeks by a civil engineer assisted during about three weeks by a national consultant. The civil engineer should have extensiveexperience in low-classroad construction and maintenance,including the use of labor-basedmethods, in developing countrieswith similar socio-economicconditions as in Guinea Bissau. He/she should have a good working knowledge of Portuguese. As an alternativefluency, in French with some knowledgeof Portuguisemight be. acceptable. The national consultantwould primarilyassist in carrying out the labor survey. A person with some background in economicsor sociology would be preferable.
AFTIN November 1989. 75 - Annex 3-S Attachment 1
GUINEA BISSAU - INFRASTRUCTURE REHABILIATION PROJECT
Pilot Feeder Roads Program
Zone Feeder Road Length (km)
FIRST PRIORITY
South Nhala - Cangregorio 17 Fulacunda - Ganjauara 21 Empada - Darsalamee - Madina de Baiso 30 Empada - Pobreza 23 Brandao - Jabada 20 Tite - N'Husse 3 R 7 - Bantael Sila 16
SUB-TOTAL 130
OPTIONAL
Southeast
Beli - Pataque 6 unidentified 44
SUB-TOTAL 50 - 76 - Annex 3-5 Attachment 2 Page 1 of 3
GUINEA BISSAU
INFRASTRUCTURE REHABILITATION PROJECT
Pilot Feeder Roads Program
Cost Estimates (December 1989, US$)
I. Improvement to about 130 km Feeder roads by Contract
Equipment for Contractors No. Unit Cost Local Foreign Total
Pick-up 3 16.000 48,000 48,000 Tractor (75 HP) 6 20,000 120,000 120,000 Trailer ((4/5 cu.m), non tipping 12 8,000 96,000 96,000 Water tank trailer (4cu.m) 3 5,000 15,000 15,000 Water tank trailer (lcu.m) 3 .2,500 7,500 7,500 Water pump (75 mm) 3 2,500 7,500 7,500 Pedestrian vibrating roller 3 10,000 30,000 30,000 Power saw 6 500 3,0uuU 3,000 Pulley block and rope 6 150 900 900 Bicycles 9 300 2,700 2,700
Sub-total equipment 330,600 330,600
Spare parts (30Z) 100,000 100,000 Hand tools 20,000 50,000 70,000
TOTAL 20,000 480,600 500,600
Equipment for MES (assistance to contractors)
Fuel tanker (9,000 1) 1 47,000 47,000 47,000 Mobile workstop 1 65,000 65,000 65,000
112,000 112,000
Spare parts 30.000 30,000 142,000 142,000
Operation and maintenance (4 years) 5,000 20,000 25,000
TOTAL 5,000 162,000 167,000
Operating cost of equipment
Equipment operated by each of the three contractors would have a total hp of about 180. The fuel consumption is estimated as followss
0.9 x 180 x 0.125 x 7h x 200 days - 28,350 1/year, cost US$ 8,500/year for 3 contractors: USS 25.500/year - 77 - Annex 3-5 Attachment2 Page 2 of 3 Labor Cost 1/
Labor requirements per contractor No. Monthly salary No. Mth/year Cost (GP)Iyear
Foremen 1 100,000 12 1,200,000 Gangmen 6 70,000 12 5,040,000 Skilled labor 6 50,000 12 3,600,000 Unskilled labor 110 40,000 10 44,000,000
Sub-total 53,840,000 camps etc. 5,000,000 Total cost for 1 contracto. 58,840,000
US$42,000/year ConstructionCosts (US$)
Constructionseasons 91/92, 92/93, 93/94 Local Foreign Total
Contractorsequipment 330,600 330,600 Interest on equipment (102 p.a. during 3 years) 50,000 50,000 Hand tools and spare parts 20,000 150,000 170,000 Fuel; lubricantand tires 10,000 74,000 84,000 Labor costs (3 x 42,000 x 3) 378,000 378,000
Sub-total 458,000 554,600 1,012,600 Less residual equipment value (20Z) 2/ 66,000 66,000 458,000 488,600 946,600 Contractorsoverhead, risktand profit (252) 115,800 121,900 237,700
Sub-total 573,800 610,500 1,184,300
MES equipment (60 2 amortisation) 67,000 67,000 Operationand maintenanceMES equipment 5,000 20,000 25,000
Sub-total 578,800 697,500 1,276,300
Constructionseason 90/91 Amortisationcontractors equipment and tools included under constructionseason 1991-1994
Fuel, lubricantsand tires 2,000 10,000 12,000 Labor costs 60,000 60,000
Sub-total 62,000 10,000 72,000
TOTAL 640,800 707,500 1,48,300
l/Includesallowances. With food aid pi:ovidedto labor, it might be possible to make minor deductionsfrom the wages.
2/Equipmentamortisation for constructionseasons 1990-1991 is included. - 78 - Annex 3-5 Attachwert 2 Page 3 of 3
II. Maintenance
FQuigent for Contractors No. Unit Cost Local Foreign Total
Towed grader31 1 15,000 15,000 15,000 Motorbikes (125cc) 2 2,000 4,000 4,000 Blicycles 6 300 1,800 1,800 Handtools LS 2,000 4,000 6.000 Labor 10,000 10.000 Operation and maintenance 1,000 8,000 9,000 (includingspare parts) 13,000 32,800 45,800
Lese residual value of equipment (502) and motor-bicycles (20Z) 8,860
TOTAL 36,940
Maintenance schedule or US$256/km-year
1991-1992 10 km 1992-1993 46 km 1993-1994 88 km 144 km
3/The grader should be towed by a tractor which, it is assumed, could be rented from one of the contractors. - 79 - Annex 3-5 Attachment 3
GUINEA BISSAU
INFRASTRUCTURE REHABILITATION PROJECT
Pilot Feeder Roads Program
Implementation Schedule
1990 1991 1992 1993 1994
A. Procurement . - Prep. tender document * I I I I invitation to tender * I | | I - award contracts - delivery equipment _ I I and hand tools
B. Road Improvement | | . 3 - demonstration/training _ I I - fixed unit rate contracts I m I - work based on-bidding I I - improvements to track, trails 3 and foot paths
C. Road Maintenance I
D. Trasining and Technical Assist. -_
E. Evaluation and Monitoring 3 I I I - Quarterly Progress Reports * * * * * * * * * * * * * - Yearly UNDP Reports * * - Evaluations - Final Report 3 3 3 3 * I I I I - 80 - Annex 3-6 Page 1 of 6
GUINEA BISSAU
INFRASTRUCTUREREHABILITATION PROJECT
Urban Program
A. Background
1. The total population cf Guinea Bissau is estimated to evolve around 950,000, of which about one-sixth,or 150,00 live in Bissau, the capital city. The overallportion of people living in centersconsidered as urban is, according to Governmentdata, about 23 percent of the total population,or approximately 220,000. Only two or three secondarycenters reach a populationof about 20,000, and no more than four or five other towns exceed 5,000 inhabitants.
2. Most of the urban centers and, in particular the capital, inherited, at least in their core areas, fairly well-organizedsystems of road, drainage,and water supply infrastructurenetworks from the colonialperiod. However, largely as a result of the stringenciesof the post-independenceperiod and the economic difficultiesof the more recent years, maintenance of most infrastructurewas severely neglected, and delivery of basic urban services, and especially that of solid waste collection and environmentalsanitation, was reduced to levels far below acceptablestandards. One of the most consequentialoutcomes of this persistent lack of adequate attentionhas been the continuousdeterioration of overall sanitaryconditions, particularly in Bissau where a cholera outbreak in 1987 exacted a heavy toll in human lives.
3. The situation in the housing sector is similarly alarming. Housing conditions in Bissau, as well as in the secondarycenters, are extremelypoor, and a severe shortage of dwellings affordable to the poorer segments of the population has become a critical element among the country's numerous social problems. In Bissau alone the current deficit is estimated at about 12,000 dwellingsand believed to be increasingat a rate of about 1,000 units per year. Aside from a few constructionsowned by high-incomehouseholds, the vast majority of houses is of traditionaldesign and usuallybuilt under self-helparrangements with the use of local constructionmaterials. Other buildingmaterials and basic suppliesare imported,but becauseof the country'sforeign exchange constraints, are in most cases only intermittentlyavailable. This has resulted in the creation of a highly speculativemarket and become a major factor in causing abnormallyelevated constructioncosts. Since independence,the Government's strategy for the developmentof the housing sector has consistedprimarily in attempts to canvas exterior, principallybilateral funding for various public housing projects intended for civil servants. Results have been disappointing however, as no more than 150 units could be completed in the last ten years, while several other of these projects had to be abandoned at various stages of completion. - 81 - Annex 3-6 Page 2 of 6
4. Aside from the persistent shortage of funding, and in particular, of foreign exchange resources, the lack of a clearly defined framework of institutionalresponsibilitias, sectoral policies and appropriate regulations has long been one of the principal factors that contributedto exacerbate the situation in both the areas of urban service delivery and supply of affordable housing. SRveral recent developments,however, indicatethat the Governmenthas now become aware of the necessityto reorientdrastically its approach to these problems and to explore new, more innovative avenues to their solution. An agreement for the provisionof technicalassistance to the Bissau Municipality to help it strengtheningits technical and financialmanagement capacity was signed in Summer 1988 with the French CooperationFund (PAC). A first sites- and-servicesoperation comprising a total of about 690 plots in Bissau has been included in SIRP. Followingup on these initiatives,the Government has also agreed to prepare under the currentproject a comprehensiveHousing Sector Policy Study which should help the authoritiesidentify technically,economically and socia,llyviable solutions for addressing the housing needs of the population, and particularlyits poorer segments,and, thereby, provide a more solid basis for possible further assistanceto this sector by the donor community.
B. Component Description
5. The proposed urban componentwould have two objectives:
First, to improve overall living and sanitary conditions for the inhabitantsof the capital city by developing-- in the form of a pilot- project -- an assistance program for the Bissau Municipalityin order to support its efforts to strengthen its technicaland financialmanagement capacity,and in particular,to improvethe delivery quality of its solid waste collection services;and
Second, to support, in followingup on actions initiatedunder SIRP, the Government'sefforts to relieve the pressure on the demand for low-cost housing sites in Bissau and to expand the benefits of its housing improvementinitiatives into secondaryurban centers.
I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - 82 - Annex 3-6 Page 3 of 6 6. The total cost of the proposed component, excluding contingencies,is estimated at US$ 2.0 million equivalent as follows (details are provided in Attachment 1):
Description Local Foreign Total -- (in US$ thousand)------
Solid Waste Vehicles and Equipment 0.0 335.0 335.0
Housing and Site Development 425.0 740.0 1,165.0
TechnicalAssistance and Studies 40.0 360.0 400.0
Office Equipment and Supplies 0.0 60.0 60.0
Housing Sector Policy Study (PPF) 13.0 107.0 120.0
Total 478.0 1,602.0 2,080.0
7. The solid waste subcomponentwould comprise the provision to the B_.sau Municipality of 2 container trucks, 18 solid waste containers,1 loader, and miscellaneoussupplies and spare parts. Since the proposedequipment is intended to complement an on-going program funded by the French FAC and in order to simplify fleet management and operation procedures to the greatest possible extent, attentionwould be paid to ensure reasonablecompatibility with existing equipment. Routinemaintenance and repair of vehicles is usuallycontracted out by the municipality to private or semi-privateoperators and, provided the required parts are readily available, can be secured at acceptable standaris. The proposedequipment would allow solidwaste collectionservices to be extended beyond the downtown area to at least four peripheral,primarily low-andmiddle income neighborhoods and to ensure daily waste removal from all five major markets.
8. The site developmentand housing subcomponentwould includethe development of about 470 minimally servicedplots in Bissat and of a tota' of 250 such-plots in 6 secondary centers (BafatA,Bissora, Bolama, Canchungo, Farim, and Gab*). All plots would have an average size of 300 sq.m. in accordance with the standards developed for the sites-and-servicescomponent included under SIRP. Plots in Bissau would be developedon two different sites: about 350 plots would be located in an area adjacent to the SIRP sites-and-servicesoperation in the Antula neighborhood,while the remaining120 would be developed in the Bairro- - 83 - Annex 3-6 Page 4 of 6 dos-Trabalhadoresneighborhood. Accordingto availablesurvey data. both sites are presumed to be currently free of occupants. However, in the event that occupantswould ultimately be discovered who could assert their permanence on the site before the public notificationof its requisitionfor the project by the Government,their relocationand/or integrationinto the proposeddevelopment would be undertaken in accordancewith the guidelines established,and agreed upon by IDA, for each cases under SIRP Project.
9. Infrastructureservices provided would include laterite roads, roadside drainage, water supply through either standpipes or individual connections, electricityand street lighting. Given the locationsof the various operations in Bissau and the secondary centers no major road access works would be necessary. Water supply would be secured in Bissau through a main connection with the existing distribution network operated by EAGB. the public water company, and in the secondary centers through link-ups with the water supply extensionsfunded under SIRP. Sanitationwould in all places rely on individual pit latrines.
10. To prove the feasibility,both technicaland financial,of new, innovative solutions for low-cost housing affordable to the poorer segments of the population, the project would finance the construction of a series of demonstrationhouses. These units, either fully completedor of a starter-home type would display a variety of basic designs and serve as a testing ground for the applicationand disseminationof appropriateand cost-effectiveconstruction techniquesusing both traditionaland importedmaterials. For the implementation of this program, the opportuniryto call on the expertiseof an NGO specialized in these activities should ultimatelybe explored.
11. The technical assistance subcomponent would provide funding for the contracting of various technical experts by MES (30 m-m) and the Bissau Municipality (20 m-mi),as well as for various studies in the areas of urban planning and urban management. Annexes 3-1 (D) and (E) provide outline terms of reference.
12. Technicalassistance to MES would comprise the provisionof professional services by urban planning and building regulation experts to help the Directorate of Housing and Urban Affairs (DGHU) prepare appropriate building regulations,undertake essentialurban planning studies for secondarycenters, and increase its ability to advise local authorities in urban development matters. This assistancewould be provided throughthe servicesof a permanent adviser to the DGHU Director General (20 m-m) and in form of successive,short- term missions by various experts (10 m-m). It would also include the supply of essential logisticalsupport material and equipment.
13. Technical assistance to the Bissau Municipalitywould consist of short- term missions by experts in urban servicesand municipal financemanagement (10 m-m), with the objective to assist the authorities in reorganizing the municipality'stax administrationand accounting systems, improvingmanagement and staffing procedures, strengthening its technical service and planning departments,and providingadequate training. Further preparationof activities to be undertakenunder the projectwould largelybuild up on, and be coordinated r - 84 - Annex 3-6 Page 5 of 6
with, the institutionalassistance currently provided by the French FAC under a program scheduledto be completedin 1990. Particularemphasis would be given to update the municipality'sproperty tax and land lease tariff structuresand to improvecollection performance. Given the still embryonicstate of management structures and lack of suitably skilled staff, preparationof a comprehensive municipal action plan will require careful study, and technical assistance (10 m-rn)will be provided under the project to prepare a municipal action plan by June 30, 1991. . 14. To complementthe effortsundertaken by the Governmentunder this project and SIRP, to improve the overall housing conditions of the population and, especially,of its neediest segments through the implementationof sites-and- services operations in Bissau and secondarycenters A comprehensiveHousing Sector Policy is being carried out with PPF financingand, together wita the experiencegained through the proposedsites-and-services and housingoperations, should allow the Government to ascertain the soundness of its development strategies and to initiate discussions on pcssible future assi'tance to the sector with the donors' community. The objectiveof the Housing Sector Policy would be to provide the Government the necessary elements for a thorough reorientationof its policies in this sector and, in particular,to establish the basis for a gradually broadening involvementof the private sector in the promotion and development of housing activities.
C. Cost Recovery
15. Increases in operating expendituresfor solid waste collection services caused by the expansion of the vehicle fleet would be covered through a concurrent rise in the municipal revenues that is expected to result from the property tax and land lease tariff reform ehich would be undert3ken as part of the Municipal Action Plan (para 13 above).
16. Site developmentcosts would be recoveredthrough lease payments by the allotteeson terms and conditionswhich are being studiedby the Governmentwith technicalassistance under the PPF. Agreementon the criteria for allocations of plots-and houses to be developedunder the project will be a condition for disbursementfor the sites and services and housing component. The unit cost for a regular 300 sq. m. plot is estimated at US$1,000. Assuming a maximum of 25 percentof total householdincome be devotedto housing expendituresuch plots would be affordable to between 40 and 50 percent cf the urban population. Demonstration houses would be allocated upon completion under terms and conditionsagreed with IDA.
D. ImplementationArrangements
17. Overall responsibilityfor the implementationof the urban componentwould lie with MES. Becauseof the similarityof the proposedworks with those carried out under SIRP. and the expected partial overlap of the two projects, most arrangementsfor the actual managementof the works implementationwould be kept - 85 -
Annex 3-6 Page 6 of 6
identical. This would imply, in particular,maintaining the Technical Office (TO) set up under SIRP in MES, and ensuring its adequate staffing with local technicians and technical assistance experts. As for SIRP, this unit would assist MES, both administratively and technically, in all phases of implementationof the project and, especially,would assume responsibilityfor:
Ci) Coordinationand monitoring of project implementationby the BissauMunicipality and local authoritiesin secondarycenters
(ii) Bidding and contractmanagement
(iii) Preparationof quarterlyprogress reports
(iv) Monitoringof plot allocation,site occupation,and performance of cost recovery in Bissau and iecondarycenters.
18. Under these arrangements,all procurement for the Bissau Mu.nicipality subconponentwould be carried out by MES which, subsequently,would transfer acquired equipmentand supplies,as well as provide technicalassistance to the municipality. Property transfer of infrastructuresincluded in the sites-and- services operations to the Bissau Municipalityor the local authoritiesin the secondary centers would made upon completion of the works in accordance with procedures agreed with IDA.
AFTIN October 1989 - 86 - Annex 3-6 Attachment1
GUINEA BISSAU
INFRASTRUCTUREREHABILITATION PROJECT
Urban Program - Detailed Costs (USS thousand)
Quantity Unit Cost Local Foreign Total A.SolTd Waste Collection
ContainorTrucks 2 No. 34 0 166 lo6 Containers 16 No. 1.3 0 23 23 Loader 1 No. 100 0 100 100 Spare Pert. n.0 0 30 30 Misc.Equip;mt _._. 0 14 14 Sub-Total 0 335 335 0.Site Devwlopment and Housing
Sites-end-ServicesBissu 470 Plot 1 180 280 460 Sites-nd-Services: Sec. Centers 260 Plot. 1 100 166 265 DemonstrationHousing n.e. 145 30S 450 Sub-Total 426 740 1165 C.TechnicalAssistance
UES-DOQU 30 i-i 8 24 216 240 Bisseu Municipality 20 i-i a 16 144 160 Sub-Total 40 360 400 D.Offic,Equipment and Supplioe (DGHUand Siesau Municipality) 0 60 6o E.HousingPolicy Study (PPF) 13 107 120 TOTAL (USI thousand) 476 1602 2060 - 87 - Annex 3-7 Page 1 of 1
GUINEA BISSAU
INFRASTRUCTUREREHABILITATION PROJECT
Cost Estimates and Financing Plan
1. Project base costs have been estimatedat December 1989 prices based on estimatesprepared by MES/SET and their consultants,and the Appraisalmission. An exchange rate of lUS$ = G Peso 2,600 has been used. The detailed cost estimatesare shown in Attachments 1 and 2. For road maintenance operations,the costs do not include salaries and wages of road brigades. Also, for Public TransportCompanies the costs do not include capital investmentsor costs to replace or operate equipment,vehicles and boats which will be financed out of generatedearnings.
2. Physical contingencieshave been applied as follows:
(a) 102 for road rehabilitationand feeder road improvements;and road maintenanceequipment;
(b) 52 for (i) institutionalsupport covering equipment,vehicles, office remodeling,technical assistance and training, (ii) the urban program covering equipmentand servicingof housing plots and houses; and
(c) 02 for road maintenanceoperations covering a five-year (1990- 94) time slice based on budget allocations.
3. Price contingencieshave been applied to the base costs plus physical contingencies. For foreign costs, the estimated inflationrates are 7.2Z in 1990 and 4.42 thereafter. For local costs, the inflationrates used are 252 in 1990, 152 in 1991 and 82 thereafter. It is expected that the Governmentwill continue to adjust the exchange rates in line with foreign currencies.
4. The financingplan (Attachment3) is still tentative since only UNDP has pledged support. Project componentsthat are suitable for cofinancingcomprise principallythe followingpackages: (a) assistanceto LEGUI; (b) overseas training fellowships;(c) trucks and spare parts for RODOFLUVIAL;(d) workshop renovation,a servicevehicle and spare parts for repairingpart of SILO DIATA's bus fleet; (e) rehabilitationworks for roads, streets and ferry crossings; (f) feeder roads improvementand technicalassistance in labor-basedworks and maintenance;(g) expansionof solid waste collectionin Bissau; and (h) replacementand additional equipment for road and street maintenance. GUINEA BISSAU
INFRASTRUCTURE REHABILITATION PROJECT
Cost Estimates and Phasing of the Implementation
I ATAITT CDP FWS TOTAL COST Toteal ha. ( (1e.cledias Cmtiaosocis;)
TOTAL IuMi coat T Of T ------Cost of co_ommat TI*T IS: f'" 'i92 '93 'S4 '%"M. Local Pacaiga To"a tLMlCA. TOTAL WV. coit (L) (M5 '@00) WL FUICS.1 Y0VI VS n V4 VA n3S CO-ff- ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~------_-- tLu A. Ia tltutlsasi 0 t
(a) Prajos Cosmdi.tiom Unit (t01) 74.0 11.0 740.0 7d M 740 100 .909 S 300 N , Ui Ua is M a" (b) Viael,s. owupst sa" aulisa 0.0 300.0 X 0.0 20 10001 Uw 800 200 i0 l0 Mi 0 O 34 Cc) l_tied I i_o & &auaaa for T.A. 00.0 140.0 00.0 20 So 701 0M 400 75 114 m
(I I) SU! [email protected]. (a) Tleicsl Aeatoac . (TUO 1, 4. 1.1100 1.20.0 1N M 1,240 1to 0. SM 2M 1n a aU 15 .m 1.m (b) Laoabse. apipst.& mapoiase 0.0 210.0 3o0.0 100 10059 s an Se LOs 1s0 M 0 20 s0o (a) Wsqtbw rsmdal i ag(S) 80.0 70.0 100.0 100 an 700. 400 aS a Sy 7u 1S1 (d) Irwapat sets studies 80_0 170.0 ' 00.0 M0 lot Sol Iou M am is 41 M0 s41
(; | |) LiR Isegilmma (II) |_ . S0saos. oLeeI1saho 00sr< (a) Oglm.0 30.0 30.0 ]so 10009 M M M 1we 100 a 0 my7 an0 Ct) ds6"Mag 9.0 31.0 8O.O 80 M ml9400 O 11 se 8 (e) Teuicmi Alsstaa 1.0 180.0 100.0 a IS1O 1to 9 S 40 S UaS 19 in 17 (d) Trahalag ibraed A$"*ol 8.5 81.11 8.0 .1S 100 gt0 MS M an - 4 0 41 (s) _bmrisls 95.9 110.1 2U5.0 21U 40 Sl M MS Ml M M a 1i9 in to
(ha) Tralahg poop (a) Ct_sc. I. SI... 121.2 40.5 1000.0 M MS 000 MS M MS 215 M I" 0z 111 (b) Cawie abroad 0.0 0.0 221.0 20 10009 1Sti uS US 140 a 0 m1 VI (a) Vabl,sa. swipmeat NWd__ eias 0.0 114.0 114.0 114 i0l 4n 4o a0 Ss u 0 in 1O (d) bIndsllie of Facilities 10.0 42.0 60.0 *0 800 701 400 M a 3 47 of (C) Teuiaag A.4i1w fros M i 1U1.0 8.0 850.0 84 M 100IOiml M MU in iU Ua 4 lli 41*
C.) Audhtlag of Projec bad T.C.0 40.0 80.0 40.0 40 US m09l 2 211 211 W U SS 441 496 (vi) Pr.jsc Praprsim 0.0 1.8o.0 1.30.0 3.100 100 100 0s 0 1.814 I.4
Im_l1tlb.tl umrt saa Coat ' .0 0.3.4 #."Sf.c Pglcel Chatiaemeiss 80.0 241.0 274.6 Pris Caatlaos.chas 146.8 001.4 707.7 ------a_sti S Supportsi_1 ToSl Coat 37.9 7.2150. 0,057.4 M .t0 6.007
lb :3 u0P u,.n X. Sb*h ACTIVITIE COST PtttSI#C TOTAL cOSr Total 1s (s) (lncl..dia Costimsenc ) TOTAL tJn.t oant * OF COST ------____.______-____.-.-- Coat of coaponnt T,KATIs: '90 '1 '92 '91 4'U'S FlS. Local Foreign Total LOCAL Ft1IO TOTAL OTY. wnit (tI) (UI 'G00) LOCAL FOPEtfI5 I T2 n 84 VS YS COT ------(tUSS 00fi) ------____ _------.------8.Tranaort. Companiaes(I00
(i) Sil OlaitF att 0oW* (a) supot vehiclee and apero parte 0.0 5.0 625.0 82 lDl0 0s 50 I lob A*" (b) Irhbgp Aseitae* freo T0 1£4.4 12. 144.0 10 N 144 106 WSJ 10s 50 Bs 17 5t 2( SS s0 (e) asiel mIgof Facil; ies 21.0 49.0 70.0 70 lOS 7065 aos 50o
(ii) Uadefluvial 0 1.751 1.7T1 (a) lare. Trewd. aN apape Pacto 0.0 i.(t.O 1.0.0 I'M 106lO W0s 40 aso Gs 7 15 S 1 (b) Workshop Aeslataea fr. 10Xt 14.4 129.8 144.0 t ob 144 1S0 PO65 us0 Ns
(d ) JA I4" 188 (a) Wotrhoqp Aclatene free TCl 14.4 12.8 144.0 1 lb 144 1o0 0065 aes Ws 5s 17 OD %C (;v) T as 17 145 I"1 (a) Worksto Assitance feres TCl 14.4 129n. 144.0 is No I4 101 lO1l 801 8OS
TIanapoet Coianlee Omse Cost 7t.8 2,792.4 2.071.0 Fbhgica£ Cant.apaci.e 3.9 189.0 143.5 ------Price Cut.ioncies 13.0 182. 15.9 --- t.11 *.210 Trasort Caspases Total Coat 95.1 1.114,. 3,210.4 Of
C. 1ad Iafast,t Peora MMtS ------^---- 992 8.17 ,170 (i) IbA. of Vowedres 2.0 4*,006.8 4,819.8 1,2 Km 2,8.00 4,JZ 156 88l 10 2S65 2 28 1 101 208 I.a6s 1,2*8 (1) Bekab of urbn satrate, 10.0 80.0 1.000.0 a P 200,000 1.0 186 851 U 206 2S US son 742 2.7 a 8.4?? (Mi) Iakb". of unpaved read 541.0 2.184.0 2,708.0 1t9 Ns 1.000 2.708 20 801 106 2511 255286 1U 101 84 19" (iv) Los cost. paving 480 272.0 120.0 is Ka 20.000 0o in 8815 w0 M 1o1 1u253 2.178 (a) toepewoemt of faedereroed 857.a 96.4 1,844.0 18 Km 10.000 1848 406 WS6 86 206 258 10 205 11011 91 1.007 1. I1 (wi) Labor-baeed aorta aesatne. 98.0 164.0 980.0 "80 to gal no no g 1s6 as M 121 204 7s0 984 (vii) Cometoct.ion ot Ferry Raa. 140.0 40.0 00.0 so 206 SC65 so s £01 241 241 (viii) ohe vehicular furry 0.0 210.0 200.0 200 01 lo0 10DS 1o0 0 1.948 2. 179 .v :l.. (i ) Tecnical assistane (TO) 180.0 1.0.0 1,800.0 200 b 1,S"* 101 WSJ 206 20e 20 2011 206 M 235 0.0 1,70.0 1,700.0 1.00no as 106 an M £o0 0 2.004 2.004 (a) Equip.nt Raplec_* 00 nt : n X 1ad £afeat.ructuer Preogram os. Coat 2,W 5.6 tS.303.2 154. fhuait.l Contingancies 241. 1,25.1 1, 45 8 . ------0 Pric; Cont..e|pncios 4.2 2.025. 2,710 t - 3A.42 16.83 20.118_ Roed lafrset.rctw. Prog.ea Total Cost 3,.411.8 18, 83. 2 20,118.8 I ACTIVITIES COST PAtSIlIC TOTAL COST Total e g (S) (Icl,.d,ne Continens oe) TOTAL unit cost OF COST ------Coot of component THAT IS: 'C0 *1 '92 '9 '94 '95 PWS Local ForaiWs Total COMOET LOCAL FPIEIG TOTAL 4TY. unit (USS) (USS '0O0) LOCAL FP ICdI Yl Y2 Y3 Y4 Y5 Y6 CCiT ------:____------0 -- -- 0. Urban Program tU8 000)
(iG .bage end ffice eipment 0.0 395.0 595.0 395 10011 753 253 5 0 450 459 () Serviced Plots a DO_on-tn. H"ouse 407.8 757.3 1.165.0 1,145 U5 l551 203 253 30S 25S 56 546 4 1.460 t;;;) Teds. Aaoiet.D(0 * a Siam. Un.) 40.0 360.0 400.0 so me 400 103 WSJ &A 30 203 10 103 53 St 420 471
Urbs. Program sea Cost 447.6 1,512.3 1,960.0 P5yssici Contigencies 22.4 5.6 96.0 Price Costioganc;ia 125.9 22e.2 353.1 ------Urbe Progrm Total Cost 597.0 1.814.1 2,411.1 597 1.,14 2.411 E. bawd lsintence Operations
bad .isteasc_e Operations; 1990 41010 7200 1,200.0 1,200.0 405 5031 1003 6 540 746 1.26 0 bind Mintence Operations: 1991 572.0 868.0 1,430.0 1,430.0 401 601 100 O 61 U 40 1.321 bed Holetamence Operations: 12 600.0 900.0 10,60.0 1O,8O.O 403 631 IOOS Os 745 1.029 I,m baod Ibientamee Oprations. 1993 on 1,S24.0 2,256.0 3,610.0 3,610.0 402 6031 453 553 OS 2,024 2.796 4.,02
band Heistance Operations Osea Cost 3.176.0 4,764.0 7,90.0 riksical Continencioam 0.0 0.0 0.0 Price Contingencies 613.7 747.2 1,560.9 ------bemd Moainncas Operatione Total Cost 3,969.7 5,511 2 9,800.9 3,990 6.511 9,801
TOTAL POJET MaE COST 6,916.5 23.796.3 35,714.6 PHYSICAL CUETIN0CIES 301.0 1,672.2 1,973.2 PRICE COrTDI0CIES 1,784.1 3,1123.5 5,607.6 _ - - TOTAL P.WBT Cosr 9,001.7 34,293.9 43,295.6 9002 34.294 43.29e
00 n X ith0 _ GO 5'? I
Li~ n1 OJONEh8186A.
ISmClREF R1LftATI4 ffD¢T
COSTTA.IE
(BMa Cost: Dec. SI, 1ow) (Sr 'ODO)
TOTAL R I 1: .184W 1990 1E* 2: _V+QM 1991 SR 3: J4)EC 1992 VEA 4 .A-OEC 1993 16EA 5S: -1 1944
CIe4T UEM. I G4 TOTAL LOA. FU4 TOTAL LOCA fWO TOTAL LOAL F33E TITAL LDAL 0GI TOUTAL LOCAL FUW1G TOA
A. IotiteaUoml sm.ot
(i) NSStrwvgthbeing (a) ProjectACaord,nti 1itA (P00 74.0 668.0 Z40.0 22.2 19.8 Z22.0A 22.2 199.8 m .0 22.2 199.6 222.0 3 7 33.3 J7 0 3.7 3a 3 37 0 4b) Vehicle., speepsnt so .,pl i_s 0.0 2C0.0 200.0 0.0 60.0 60.0 0.0 60.0 60.0 0.0 40 0 40.0 0.0 300 20 0 0.0 2D 0 20 0 (c) A tiI ins A "amm tr T.A. 0.0 140.0 200.0 35.0 84.0 120.0 24 0 88.0 E0.O 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0
(ii) ST Stia.ghming (a) Techical Aistas (MO 124.0 1,118.0 1.240.0 62.0 866.0 62D.0 31.0 279.0 310.0 18.8 167.4 168.0 6 2 55.S 62.0 6.2 56.8 Q20 (b) L1And.. e_ipst.& a1i_m 0.0 240.0 250.0 0.0 75.0 75.0 0.0 75.0 75.0 0.0 60.0 80.0 00 25 0 25 0 0.0 2S.0 25 0 (c) _orhake reind.llIag ; C) 30.0 70.0 IOD.0 12.0 28.0 40.0 18.0 42.0 D0.0 0.0 0.0 0.0 0 0 0.0 0 0 0.0 0 0 0O (d) TrerA l mo alali 30.0 270.0 360.0 0.0 0.0 0.0 3.0 27.0 3D.0 9.0 81.0 90.0 e.0 61.0 10.0 9.0 2.0 0.0
(i;;) a Str e_;ngtina
(a) E*.ip.t 0.0 240.0 2S0.0 0.0 84.0 84.0 0.0 84.o 84.0 0.0 5S 0 se.o 0.0 2S.0 24.0 0.0 24.0 240 Ct) _minis I.no 9.0 21.0 30.0 3.6 8.4 !2.0 1.4 12.8 18.0 0.0 0.0 0.0 0 0 0.0 0 0 0.0 0.0 00 o (c) Techical AmistanS. 13.0 111.010.0 4.5 40.5 45.0 8.0 84.0 e0.0 3.0 27.0 30.0 0 a 6 8 7.5 0.6 4.6 z s (d) Training abmad A local 3.1 31.8 35.0 0.7 8.3 7.0 1.6 18.8 17.I 1 1 e.5 10.15 00 0o 0 0 0 0.0 0.0 00 (.)bterial 96.9 11.1 215.0 19.8 23.2 43.0 19.6 2.2 43.0 19. 23.2 43.0 19.8 23.2 43 19.8 1.2 4¶ 0
Ci.) T';ino Prowas (a) Cores in Bi_ma 21.2 464.8 601.0 21.8 87.3 109.1 21.6 e7.3 109.1 24.7 106.7 13.3 25.1 101.8 127.3 25 5 101.8 127 3 (b) Comtpas abami 0.0 Z1s.0 23.0 0.0 27.0 27.0 0.0 51.8 11.8 00 0.0 83.0 0.0 10a 51.8 0.0 b1.5 31 5 (c) Vehicles, aqip..t and sop, ias 0.0 114.0 114.0 0.0 47.9 47.9 0.0 47.9 47.9 0.0 b.1 8.8 0 0 5.7 5.7 0.0 6.7 s 7 (4)d ell ns of Foci itige 18.0 42.0 60.0 6.1 18.9 27.0 9.9 24.1 33.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 00 (a) Traino Advisor luau PWo 35.0 318.0 3s0.0 12.3 110.3 122.5 6.1 72.3 W.8 6.0 33.6 89.5 4. 41.0 4S.S 4.2 81.8 42.0
(a) Auditing of Projoct Oan T.C.s 40.0 360.0 400.0 0.0 0.0 0.0 10.0 'D.0 . s.0 10.0 90.0 100.0 10.0 90.0 sD0.0 10.0 90.0 o00.0 (as) Projt Prrtion 0.0 1300.0 1,800.0 0.0 1,300.0 1,800.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0
bibutatmaal _Port Br Cot 08.8 6,336.4 6,996.0 202.9 2,966.5 3,181.5 180.9 1,80D. 1,481.7 118.2 973.9 1,090.2 79.4 s82 642.7 79.1 80.9 619.0 Naelcal Cmatlua;ies 32.9 241.0 274.6 10.1 72.9 63.1 9.0 5.0 74.1 5.8 46.7 84.5 4.0 2a.2 12.1 4.0 27.0 SD.9 Pric cm,inWcises 14.3 641.4 7a7.7 2e.8 109.1 131.6 38.0 130.6 148.6 29.5 147.0 176.6 26.7 114.6 ue9.e 29.4 136.8 1i 2 hAtitsimi Sport Todl Cost 87.9 7.219.8 8,087.4 209.7 3,140.6 3.3110.3 2.0 1,496t.4 1,722.4 181.8 1,169.7 1,321.3 106.1 706.a 814.4 112.4 70.7 419.1
00 n 1 Pn I I.,' 3
9.',It (1a. Coat Oac. 31, 196) Oss '000)
TOTAL SR 1: J#R-C 1990 I WOR 2: ,1-EC 1991 YER 3. .A-fEC 1992 YEA 4: JAI-3C 19943 TSARS. .4MC 19w
03498041 LOCAL U1GN MOAL LOCAFL FXG TOTAL LOCAL flIG TOT LOCAL 0O4 TOTAL LOCAL FO0 TOTrAL, LAL fXW0 TOTAL
i. Tran_rt Caeeie_
(,) Sil1 Dials (a) Spat vdicele NW *are pat" 0.0 625.0 W25.0 0.0 312.5 312.5 0.0 312.5 312.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (b) 1eI Im Aso'setoms fr TO) 14.4 129.6 144.0 7.2 64.5 72.0 7.2 i4. 72.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 00 (e) FbhaMlia of FociI iteia 21.0 49.0 70.0 10.5 24.5 35.0 10.5 24.5 35.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0
(ii) Re6w"ial (a) brga, ThickS wO Wore pat s 0.0 1,60.0 1.600.0 0.0 960.0 060.0 0.0 640.0 60.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (b) 16 i .skete fri T1U 14.4 i29. .44.0 7.2 64. 72.0 7.2 64.5 12.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(a) 1 Amaislaw. fm TOJ 14.4 129.6 144.0 7.2 64. 72.0 7.2 4.5 72.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0 0.0
(iv) TAW (a) e 1" AsaWele frm T1U 14.4 29.6 144.0 7.2 4.5 72.0 7.2 54.5 72.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Tnummort C_miem baw Coot 76.6 2,7924 2.71.0 39.3 1,56.2 1,I59.5 S9.3 1,29.2 1,275.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Pical Coati mes 8.6 139.6 14.6 2.0 77. 79.5 2.0 61.* 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Prim CantlaaIs 18.0 1112.9 104.9 5.2 56.5 i4.0 7.6 I24.1 111.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 ..0 0.0 Tr Cagpmiesowpae ToW Co 45.5 3.114.0 8,210.4 46.4 1,62.0 I,789.5 49.1 1,45.1 1,471.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
C. bad Zaraalro Flow
(hj bad. of pawed med 725.0 4,096.5 4,619.0 72.3 409.7 452.0 150.7 1,024.2 1,205.0 1O.? 1,30.2 1,204.0 10.7 1,40.2 1,35.0 #15.4 614.5 13.0 (Ii) dtho at w Ireat 16.0 N50O.0 1,000.0 7.5 42.5 60.0 30.0 170.0 20.0 45.0 215.0 00.0 87.5 212.5 =D.0 80.0 170.0 NO.0 (;ji) baa. of emvd Mads 5461.0 2,16.0 2,705.0 64.1 228.4 270.5 1851.2 641.0 7.2 15.2 841.0 87.2 -15.2 641.0_ . 6.2 6.1 NO.6 4Qi.7 (IV) i& c_di gava 4t.0 272.0 uO.0 0.0 0.0 0.0 24.0 186.0 180.0 24.0 1J5.0 100.0 0.0 0.0 0.0 0.0 0.0 0.0 (.) I_roid fadar roads 67.6 6.4 1,64.0 J2.9 49.5 *2.2 181.5 197.S 7.6 1i4.4 246.6 411.0 197.8 23t.9 4U0.2 il1.5 197.8 ao.o (vi) i a_l. mIatane 96.0 414.0 960.0 24.6 N5.2 NO.0 26.6 21.2 NO.0 19.2 S. 142.0 14.4 0.6 14.0 4.6 4S.2 40.0 (vii) Carmuila of P Rap. 161.0 640.0 600.0 60.0 800.0 400.0 60.0 11D.0 400.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (vMii) O. v,imlar ferry 0.0 230.0 200.0 0.0 0.0 0.0 0.0 S0.0 20.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (in) Telml .aaiatoa (r0) 1O6.0 I,Z00.0 1,600.0 36.0 3514.0 80.0 56.0 N21.0 380.0 lt.0 1.0 380.0 86.0 814.0 810.0 d9.0 Z4.0 NO.0 (a) FPl_pam Appacmu- t 0.0 1,7Q0.0 1,700.0 0.0 0.0 0.0 0.0 650.0 UD.0 0.0 660.0 160.0 0.0 0.0 0.0 0.0 0.0 0.0
iad Jnfraaructare Phw. Ie Co at 2,55.4 13,868.2 15,641.5 311.6 I,80.1 1,9T2.7 646.8 4.,2.7 4,666.0 C64 5,.6 4,154.2 601.2 2,012.2 3,3.4 l.6 1,48.6 2,0U.6 Rayeiol Cmr_Cemgi_, 241.6 1,218.1 1,415.9 27.9 235.0 160.9 41.4 373.0 484.4 57.? 8II.1 867.0 57.S 230.0 237.6 67.2 149.0 U1.2 Pri Ceatieiucird W4.2 2,30.9 2,710.1 42.4 53.1 73.6 154.8 421.1 814.3 160.3 517.6 71.2 195.5 66.2 72 .7 151.6 445. 6N.& _ad bfrasnrctare Poop Total Coat 3,481.6 3i.Ui4.2 12D,I.1 38.9 1,.07.2 2,190. I 12.0 4,14. 5,6851.7 a2.6 4,4S7.6 5,260.2 4U.2 8,2U.6 4. M4.7 40.6 2,212.5 2.M.0
00 rn :
0MX
Ci (go". Ct:. Oepc. 31. 196)
TOTAL V8A 1: .IM-00C 1990 VW 2: .4*EC 191 s A 3: .I-EC 192 ER 4. .He-Os 1993 _ I S: .39w 199 ------_------__ ------_-___------aToeq LOCAL FaWm TOTAL LOCAL F1I0 tgULOTAL UXAL F1ai TOTLF LOALLC fWO TOTAL LOCAL F DGO lOT/A. 1.0M F14 IT0AL
0. _us Proene
0aebo an office .mimnt (V) 0.0 895.0 8es.0 0.0 0.0 0.0 0.0 296.8 296:3 0.0 9.6 96.0 0.0 0 0 0.0 0.0 0 0 0 0 (ii) serviced Plt. a ,.tn. "am" 40.0 757.3 .1165.0 0.0 0.0 0.0 01.8 151.5 Z3.0 101.9 1t.S3 291.3 12.8 227.2 349.?. 101.9 1t.3 2913 (ill) Teds. Asit.SOU A Bi mwlta.) 40.0 No.0 400.0 12.0 1.0 320.0 12.0 100.0 1m.0 0.0 72.0 o0.0 4.0 3.0 4C.0 4.0 5.0 40 0
P,Wee Dee Cst 447.6 1.52.5s I,9.0 1tote 12.0 10.0 120.0 es. am5.? 49.3 10.9 380.1 470.0 10.3 F3.239.5 VS.# 22 3 331. Phsiclc CGwAint mciOe M2.4 75.4 96.0 0.6 5.4 6.0 4.7 27.6 89.5 5.5 U8.0 21.5 6.3 18.2 19.5 5.8 11 s £ 6 Price c_tlagusiee 16.9 223.2 M.A 1.6 4.1 5.7 8.0 565.0 74.4 27.9 54.4 628 894 58.6 9.0 9.0 30.4 el I tote r Totl Coet 697.0 _m 1.1U4.1 2.411.1 14.2 U7.5 131.7 116.9 6e.a 76.1 148.4 489.4 575.0 172.0 3O.0 50.0 110.6 2"4. 45b s
L Need lelatememce O#rotimw
Rfo Ola_imme Operatio: e190 460.0 7o.0 1,2m0.0 460.0 720.0 1.00.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 00 ond RobIa9mu, operations 191 a2.0 0.0 1.43D.0 0.0 0.0 0.0 72.0 e0.0 1,430.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0 0 1edt5ints_mce Qpe,.ticm: 191t2 00.0 0.0 1.30.0 0.0 0.0 0.0 0.0 0.0 0.0 O6.0 900.0 1.80.0 0.0 0.0 0.0 0.0 0.0 0 0 blud Obimuc 1.0 an 1,4.o 2.3.0 5,01o.0 4tiaenm 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6f.6 1a..7 1.714.5 _.2 L.25.3 2.0 56
PA" Ibinteeanc bermtim bee Cot 3.1.7.0 4.764.0 7.040.0 460.0 1D.0 1.230.0 572.0 66.0 1,41.0 6OD.O 90.0 .w.00 665.6 I.OW.7 1.71.4.5 6.2 1.2.3 2.056 tsz.elCe CAWinIeRiS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 00 00 0.0 Price Castinecise 61.7 747.2 15.D9 60.0 25.9 65.9 100.5 62.0 190.5 145.2 129.. 274.6 203.5 99 7 400 2 265 210. 1 am6 erutio; 1adlbin _Op Total Co" 3.905.7 5,511.2 9.5eo.9 60.0 745.9 1.285.9 60.5 940.0 1'M.5 ra.2 1.O 4 1.774.4 66.5 1.,22.4 2.U7.7 1.184.7 1,537.4 2.102.
TOlTAL rALTW 17 6,916.5 3,796.8 66.714.6 I,5.6 0,965.6 6,009.0 1.02.1 7.972.4 9,604.5 1,4D.0 5,7S.6 7.214.4 1.462.7 4,30.4 5,05.1- 1.4181 8.696.1I 5,I1.2 10951CAL SWC30DI.O I.M72.2 1,971.2 40.6 39.1 8n.7 77.1 &7.0 04.7 89.0 6.0 4a.6 67.9 271.4 39S 8 40 4 67.3 23S 7 "Om E s3133cz 1,M. 1 3,30.5 5,0O7.6 135.5 231.1 86.9 305.5 012.5 1,117.7 s.0 60.7 1.251.? 405.0 9S0.4 1.3.4 517.0 097.9 1.474 lUlLPR" COST 9.0a1.7 34.2.9 48,265.6 1,22.3 7,514.0 6,1.5 1914.4 9.312.5 11U,. 1,6M.6 7,009.1 6,951.9 2.00.6 S.67. 1. 7. NO.6 1.9h.. 4,041.2 .6.10.8
.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 _ T
S) rt~ OQrt 0 n x
oM I O I NhR4t.ffl ilS ATInONIAD ELT
FMW F114"M
leTWL TD S the& - io Cmi_onces_) ODrnmn MA WW {*i} ITIFfIID LDC (S"bi-0) FAC (se_X*ivo)
L1Oa fai.lp Total Loc. FPw. ToLI Lc. FrPi. Total Loc. fPo. Totel La. Fep. Total Lac FPp Totel eLo. frp. TOtl memedr ------GM VW) M) () (16ODO) (1) SLS'00D) (U) M (1 O) (U) MU (LU W'0) M1 M5 (L ) M ( OWDO) A. btatAitim.rs _port
(.) Proj.ct coordiftsoio thit (MA 46 77 m 0 ion 0m 66 0 0 0 0 (b) vihicles. quipment an swplii 0 24 234 0 1 250 0 0 0 0 (c) Ullino Itu s for T.A. 73 US 2a ls 36 SixS1CI 15 a 0 0 0
(ii) SU Strem4lUmting (a) Taduiicl Ammid_tooa (tT7) 153 I.2m 1,42 0 lOD4 son 1.4Di 0 0 0 0 (b) LaunMd_,i.a pm0LA&.uep. a 2 2W2 0 0m 2w 0 0 0 0 (c) We4itbh rmoWlliae (D) 3? 79 115 as is Om loo 9? 0 0 0 o1 (4) Tiw_Dpot _o~e ski_. 41 Mill we MS U 3 3IO 0 0 0 0
(iii) LOUI SI,ousthm,o (a) 6ai_mt 0 S17 37 0 1015 37 0 0 0 0 (b)b.d.lliig 11 24 35 us 5 S mm 29 0 0 0 0 (e) Tdicl Aist no 14 S 175 0 105 YI0 175 0 0 0 0 (d) Tmiia bdW a locsl 4 3 41 0 0 0 1005 100S 41 0 0 ()btrial# 126 ult 2U lo I OJ am 7 0 Ws 70 0 0
(u.) T"iuiiw Prora (a) C m in sisam 159 fS4 743 0 1O0 100 743 0 0 0 0 (b)Cmunaaabmod a 211 271 0 O S tO 0 amS O 0 0 (a) Vduicl... eqipmeiu en .pli. 0 U13 U 0 10 t o 0 a 0o (4) R.llinof Fecelitim: 22 47 so M1 11 MS 15 as 0 0 0 0 (f) Training Adiuw fm* P< 44 3U 4U 0 1015 1015 413 0 0 0 0
(.) Adiin Project and T.C- 53 442 446 am 2 Ms 101 440 0 0 0 0 (vi) P,o..t Pr.waration 0 1,254 1.254 0 O 0 1,5' 0 0 0 0 lrwtihiti.al ISupt fatal Cost m 7.22D *.057 247 7,55 0 245 0 0
00 n
om I
4(1 Q#VDEASISAJ
MMtSTRAClM fOAIL TATIC4 MW&
iT FDVCDC
TtiTL Tw (lldiag Cowtiagomi s) 2.6mnmt MA kw (steativ) wiui'WzD 1t CDF (bo..at-) UAC (S_Se.)
0 Loal f.r il TeOal Loc. Frt. Total Soc. Fr . Totl Loc. Frgn. Tout t=. Frg Total Loc frp. Total So. FrP. Total ------_--- _ - - _ M(1 O low) C1) () ^ ------w low) ('O) (s Ms IOU acs Z)w VW) C1) (1t) (L" '0a00)C1 B " S. T,ort Cmp_.
(;) iIIoDista 0 0 () bport dicie. w,d spare parka 0 an ON 0 101 70 0 9S w2e 0 0 0 (b) WaI Aiemc* f ro 1W 17 14W km a i 1015 16 0 0 . 0 (e) P.i_ ofdPrFociIi.ies 2f as go 0W 13 0 0 5 10Wm Go
Qi) i_ofwlsi 0 0 (a) brp. UK WATns w pSr. 0 1.7ti 1.7S 0 343 am 0 in 1.175 0 *) Sbh*Ap 6ssi04wbce Eros TO 17 145 168 0 1o01 I0 18 o0 0
(iii) . 0 0 0 (a) b_~imap AmioAeno from TOJ 17 14m 10 0 10o 10i1 10 0
(lv) T 0 0 0 (a) m Amitance fro TOJ 17 148 168 0 1015 125 1l 0
1.,2 0 0 Tr_me Ca_os TrAtot Cost i 3.115 8.210 la 1.= 0
C. ibd Offrst.ructurs Preorm 0 0 (i) _41. of pivod COWS 692 5.17S 6.170 815 406 I5 30 2.04S 0 XS 641 ,01 0 O (ii) aiI of orbm stresta 206 I,.CS 125 eta 104 25 25 8 0 22 WIS am 0 0 (;; ) bb*. of reravd moad. 742 2.7 3.471 sU 3n US 2Y mo0 US 7M 2.,0 0 0 (hv) Le Omt_paios 64 3W 8S 25 32 8am 0 8J7 0 0 0 101 IO 2.178 0 ) lovmw t of feder ro" 915 1.21i3 2.117 0 0 0 0 0 (vi) - er4_md ortis miate 121 1,007 0.121 0 0 I1 I= 1,1i 0 42ti 0 0 (vii) coneSnc, do Ferry Rem" 204 750 956 m15 102 20 M 42l 0 2 1 l 0 0 (v.ii) b.v d-u ;elo f rra 0 261 241 0 1I0 241 0 0 0 0 (is) Te"ical mi -twnc(TO) 2SS 1.06 2.110 0 1o01 10c 2.17 0 1I= 2.004 0 0 (.) 6ipmt Raplarnsurt 0 2.014 2.09r 0 0 0
*076 1,121 2.17b 0 tWmfresOetr re Pr_r TOWl Cst S.4 1,04 2D.116 I.1S,m
Vns 91 rY QAW euss OJIIEABISSAJ
D16ASTR.Cf.E @aDL.TIAt iAD=T
;t FID4bC
TOTALGM27 (lcSluieJ C,ntIncift) wcornat IDAUW ("1, Dtl (Sa e -)*eD FAC (944ti .) Liss Foeip Toti LSc. Ftp. Total Loc . Frg . TLesi Loc. Ftp. Yotal Loc. Frpin TYAI Loc. Ftp ToWi Loc. Frt Towa
- - QAS60) (1) (M) (16'0 ) (5) (t) 6 0kW) () (5) 0t'000) (1) (5) (Lh6Ott) (5) (U) (LS 0. Utb.. Pnt3or_ 6ODD) (5) (11) oII )
(i) 0,tag ae off,c* qospint 0 45 458 0 255 115 0 0 (; i) Sraiced Plot. A D. _tA. t_. 546 0 T7o 345 414 1.4101D 2n 9g 1Wm 1.4U 0 (1i;) T?e. A_O..t(V0.t 0 0 0 .sawA ft,n.) 51 4 471 0 Wm mgf 377 0 0 0 201t D 94 wban Progra ae Cast FRoil Continewncie Price c PA" Frintero.0 Iwati.as. 1990 840 746 1.M13 813 210 83a 1Loo 1.018 0 led ointawra lWma*t.a: 199i 0 0 0 31 94O 1,m 70 StO 251 10 1.110 0 bAed lh.nta c 0 0 0 1 Oan: 1992 746 1,4M9 i,m 7 on9 2 1005 1.210 PAW 9tintsm.cw 0 0 0 0 L oat.am: 1993 as 2.C54 2.,96 4., 1to0 2.0W4 a 100 2.19 0 0 0 0 M ------bAd lbiat.c. ot,tiw. Total Cast 3.9i0 S5,1 9.501 3.363 6.S3t O 0 0 0 TOTAL IT COT 9.03 34.254 43.26 4,7U9 23,601 1.121 11,194 2.17t3 iDnI:' gaor :I} M i L .a O-i I-, * - 97 - Annex 3-8 Page 1 of 2 GUINEA BISSAU INFRASTRUCTUREREHABILITATION PROJECT Outline of ParticipationAgreements with TCs The Governmentof the Republic of Guinea.Bissau will. through SET, enter into agreement (ParticipationAgreement) with each of the TCs providing, inter alia, for the following: (a) terms and conditions,including the terms of reference,of the technicalassistance to be provided to each TC, as described in Annex 3-1 (B) of the SAR; (b) setting of operationaland financialtargets for each TC described in Section IV of the SAR (para 4.04 for RODOFLUVIAL. para 4.09 for SILO DIATA, and para 4.14 for JAPG); (c) adoption of the upgraded cost accountingand financial management systems and of accountingprocedures to be developed under the Project, includingannual auditing of accounts; (d) privatization,restructuring, liquidation or other reorganization,acceptable to SET and IDA, to be implementedby January 1, 1992, includingeventual changes in ownership or management,required as part of the action plans for each TC which will be furnishedto IDA not later than March 31, 1991; (e) in the case of TAGB, until the change in TAGB's organizationis effective: (i) it will not enter into any new agreementswith EAS or any other airlines for internationalor regional services; (ii) it will not expand its regional services beyond the- present weekly schedule comprisingone flight to Dakar, two flights to Conakry and one flight to Praia; (iii) the cost of air ticketswill remain at the same level as competingairlines; (iv) air tickets purchased in Guinea Bissau by Guinean nationalswill be paid in G. Pesos at the current exchange rate, foreign nationalswill pay in foreign currency; - 98 - Annex 3-8 Page 2 of 2 (f) in the case of GUINEMAR: (i) its restructuring,including if necessary,private participationin a manner satisfactoryto SET and IDA, by June 30, 1991; (ii) the repayment,by June 30, 1990, of all debt owed to JAPG by GUINEMAR as of March 1. 1990, and the repaymentof all future bills owed to JAPG by GUINEMAR within four months of the date of billing; (g) repaymentto MES by each of the TCs for any goods provided under the Project to such TC by MES shall be in G. Pesos and shall include the interest rate applied by the Banco Nacional da Guine-Bissauto the priority sectors,with a repaymentperiod of 20 years, or the useful life of the asset, whichever is shorter, includinga grace period of 5 years; and (h) insuranceand maintenanceand repair of plants, machinery, equipmentand other property of the TCs. AETIN November 1989 - 99 - Annex 3-9 Page 1 of I GUINEA BISSAU INFRASTRUCTUREREHABILITATION PROJECT ImplementationSchedule 1990 1991 1992 1993 1994 1995 1996 INSTITUTIONAL SUPPORT Project Coordination (PCU) Transport Coordination (TCU) LEGUI Assistance Remodelling and Houses Vehicles and Equipment Training Courses Audits TRANSPORT COMPANIES (TCs) SILO DIATA RODOFLUVWIAL JAPG TAGB ROAD INFRASTRUCTURE Paved Road Rehabilitation Urban Street Rehabilitation Unpaved Road Rehabilitation Pilot Feeder Roads Ferry Crcssings Technical Office (TO) URBAN PROGRAM Solid Waste and Office Equip. Serviced Plots + Houses T.A. to DGHU and Bissau Mun. _ ROAD MAINTENANCE Operations GUINEA BISSAU INFRASTRUCTURE REHABILITATION PROJECT Estimated Disbursement Schedule cuose..01 big bt.m._ e ; _ (3 he.~ ~~~: _~~~~~:__ FV go ~~~~~~~~~~~~~24- 35 6 ~~~~~0.00 2 162 20 9.00 mr. .5 WIN4.D AMb 1215..0 154 40.012.0 oC Am. 0.0 3720.C0 3_4.0 'V_1511 4400 14t o ~~wHi 49 ~~~~~~006 AgoX 4 ".Co 4 / 1110s.e 33.2 640000 owl631.00. 7 .11o5.:1 "W ~~~~~~~~a 2 swilswo '9.0 61 73.00 "Web _ 2D.=0 AI U PrAM 1t21n3 6. a SWfld WMff. D._@Zw -0. 64 64. $106110, 21.0 6 2.400- PJ 4 P9I _W6 'a21.I 0 W.:0 m 20.9 97 64.0> _Va. .o : rf " I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Dm 0q_ 23.3 so WAD. X oe"w 23.6 3.00 64 0 _ -n Afrits - SmtUw bnslmint,u~ A Shistw,ncm Lame - 101.- Annex 3-11 Page 1 of 2 GUINEA BISSAU INFRASTRUCTUREREHABILITATION PROJECT Survey of Occupantson Housing Plots - Outline Terms of Reference A. Objectives 1. A survey of occupantsof existing dwellings on sites and services plots in Bissau and about six secondarycenters, is to be carried out by MES (Ministryof Social Infrastructure)tot (a) provide a socioeconomicevaluation of the impact of the Project on present residentsof the plots where MES inteads to undertake the sites and services component of the Infrastructure RehabilitationProject; and (b) identify and design a resettlementplan, if neces.sary,for the present residentsof the plots. B. Scope cf Work 2. The survey shall be carried out through the technicalOffice (TO) in MES, which shall select and employ qualified local staff and consultants'services necessary to carry out the survey. 3. In carrying out the survey,MES shall obtain, inter alia, the followinginformation relevant to the occupantsof the sites to be developed: (a) number of occupantspresently living in the sites to be developedunder the Project; (b) demugraphicprofile of the occupants: age, sex, marital status; (c) list of where occupants are employed and their Incomelevels; (d) determinationof whether occupants own or rent their houses; (e) who has traditionalrights to the land; or, whether the present occupants pay a land rent; (f) how occupantsmeet their service needs (water, fuel, transport); (g) whether occupantswant proposed improvements,and if they are willing and able to pay for such improvements; (h) determinationof whether occupants should be permitted to continue occupyinr their present homes, while paying for the improved services;and - 102 - Annex 3-11 Page 2 of 2 (i) whether any of the families,given the choice of paying for land and services or leaving,will choose to leave. C. ResettlementPlan 4. The resettlementplan should be designed in accordancewith the World Bank's resettlementpolicy and guidelinesand include, inter alia, the followingass stance to the persons to be relocated: (a) designationof another public area of comparable size for settlement; (b) assistancein dismantlingtheir homes and transportingthe buildingmaterials to the new site or full compensationfor the value of their immovableassets; (c) a relocationgrant to cover the costs of moving; (d) counselingand cooperationwith communitygroups to minimize the economic,social and psychologicaldisruption associated with the move; and, additionally; (e) special attention should be given to the location of the new site with respect to residents'current jobs or occupations, availablewater supply and sanitationand commercialand social rervices. 5.. If families choose to leave, an action plan to resettle them should be derigned to provide them with the necessaryassistance so they do not experiencea net loss as a result of the Project. AFTIN November 1989 - 103 - Annex 5-1 Page 1 of 3 GUINEA BISSAU INFRASTRUCTUREREHABILITATION PROJECT Economic Evali.'tionof the Road InfrastructureProgram A. Background 1. Most of the items included in the economic evaluationwere analyzed using the HDM (HighwayDesign and MaintenanceStandards) Model. LOTUS 1-2-3 was used to determinethe rates of return for the various groups of roads. The main benefit to be derived from the road infrastructureprogram will be the increasedefficiency of the transportationsystem, which will in turn increase the country's level of economic activity. The project will contributeto the solution of a number of transportationproblems; in particular,its main benefits will be: (a) reduced freight and passenger trs sportationcosts; (b) more efficienttransportation of nds to consumptioncenters, and for export; (c) increasedmobility for the popula son as a whole, and for medical and social services; (d) improved road safety for vehicles and pedestrians. 2. Not all of the above benefits were taken into account in the analyses, since the more subjectiveof these were excluded. Essentially, rates of return were based on reductionsin vehicle operating costs and travelingtimes. No account was taken of social benefits resulting from the works, or of 1:hebenefits resultingfrom improved road safety. In particular,the p:esent conditionof Avenida Pansau VPT ra makes it the scene of frequent accidents. The creation of jobs for -A,e communitiesin all the areas involved is another importantsocial ben .t. B. Ir-iutData and Parametersfor HDM 3. Although input data for HDM vary from one road to another, the fci.lowingare the ranges for each of the parameters considered: (a) Paved Roads (i) Roughness of existing roads: InternationalRoughness Index (IRI) From 7.0 to 10.5 m/km (ii) Roughness after rehabilitation: IRI ?rom 3.2 to 4.0 m/km (iii) Type of maintenanceplanned: Patching 130Z Resealing Seven-year intervals Routine maintenance - 104 - Annex 5-1 Page 2 of 3 (b) Laterite and Earth Roads (i) Roughnessof existing roads: IRI From 11.7 to 14.1 m/km (ii) Roughnessafter rehabilitation: IRI From 3.0 to 5.3 m/km (iii) Type of maintenanceplanned: Regraveling 1002 Grading Average: 2 per year Routine maintenance C. Rates of Return Analysis 4. In general, the rates of return obtained are somewhat high, but this is a reflectionof the poor conditionof most roads. Rates for each componentare shown in Attachments1 through 5, and for the overall Road InfrastructureProgram in Attachment6. Paved Road Rehabilitation 5. The HDM Program was run for each road in order to study the conditionchanges over the design life and the economic or financial. aspects of the measures to be adopted. Attachment 1 summarizes-theresults for the seven paved roads included in the project; estimatedERR is 82 percent with individualroads EER ranging from 14 to 127 percent. Unpaved Roads 6. The same method was used for this project component as for paved roads. Attachment 2 summarizesthe results obtainedusing the HDM Program. The estimated overallERR for this group of roads is 30 percent, which is lower than for the paved roads because traffic is much lighter,with individual roads EER ranging from 18 to 41 percent. Urban Streets 7. Activitieswill consist of the rehabilitationof about 3 km urban streets in Bissau (AvenidaPansau N'Isna and Avenida Nacoes Unidas) and of about 5 km in other priority cities (Bafata,Gabu, Bissora and Canchungo). As Attachment3 shows, estimatedERRs are 22 percent for Bissau streets and 15 percent for streets in other cities. The overall estimatedERR is 20 percent. These works, in particular,would provide important,though -nquantified,social and safety benefits referred to above. Rural Roads 8. The HDM Model was applied to the pilrt rural road program as a whole, assuming overall average traffic to be 20 vpd. As Attachment 4 shows, the overall estimatedERR for rural road improvementsis about 39 percent. - 105 - Annex 5-1 Page 3 of 3 Road Maintenance 9. ERRs for the road maintenanceprogram were estimated for all categoriesof roads to receive routine and periodic maintenance. As Attachment5 shows, the estimatedERR was 32 percent. SensitivityAnalyses Sensitivitytests were conducted,assuming traffic levels and benefits 1OZ lower, and costs 1O higher, than originallycalculated. The rates of return would thereby be reducedby about 4-8 percent. In light of the rates originallycalculated, this would no! b)every significant. D. Risks 10. No major risks were identifiedwith respect to implementationof the road infrastructureprogram. The main risks are associatedwith the possibilitythat disbursementsfrom donors may be suspendedbecause of the Government'spayment arrears. This occurred on several occasions during the implementationof the Second Roads Project. Another factor presenting certain risks for the program is that the increasedrevenues to be allocated for the Road Fund may not eventuate,thus limiting its rple of financingroad maintenanceactivities. REPUBLIC OF GUINEA-BISSAU INFRASTRUCTUREREHABILITATION PROJECT ECONOMIC RATE OF RETURN OF PAVED ROADS (USJ million) at N2 N1J R9 R7 L36 R3 BISS.-JUGUDUL RIO MANSOA-SAFIM JUCUDUL-BAMBADIN BAMBADINCA-XIME CATIO-RIO CUMBIJE JEMBEREM-CADICUE MANSOA-BISSORA TOTALS CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL NET YEAR COSTS BENEFITS COSTS BENEFITS COSTS BENEFITS COSTS BENEFITS COSTS BENEFTTS COSTS BENEFITS COSTS BENEFITS COSTS BENEFITS BENEFIT _ - ----_------_------ 1990 (80.496) (30.496) (80.496) 1991 (81.166) (30.160) (80.076) (81.390) (81.890) 1992 80.000 81.888 80.000 $0.189 (30.620) (30.675) (81.295) 82.072 80.777 199S 80.000 S2.146 30.000 80.205 (80.620) (80.220) (80.180) 80.000 80.340 (81.020) S2.690 81.670 1994 80.000 82.408 80.000 $0.226 80.000 80.488 80.000 80.033 (80.270) (80.220) 80.000 80.379 2O0.490) 83.634 83.044 1996 80.000 82.690 80.000 $0.251 80.000 8J.664 80.000 80.034 80.000 80.086 80.000 80.041 80.000 80.428 SO.C,10 83.974 83.974 1990 30.000 82.740 80.000 80.277 80.000 80.640 80.000 80.039 30.000 80.074 80.000 80.043 80.000 80.469 80.00o. 84.280 84.280 1997 80.000 82.890 80.000 80.297 80.000 80.786 80.000 80.044 30.000 80.084 80.000 80.047 80.000 80.487 a0.000 84.686 84.565 1996 (80.822) 88.047 (80.140) 30.809 80.000 80.832 30.000 10.049 30.000 80.094 80.000 80.060 80.000 80.616 (80.962) 84.097 88.986 1999 80.000 83.211 80.000 80.321 80.000 80.934 80.000 30.064 80.000 80.106 30.000 30.065 (80.438) 30.646 (80.486) 16.228 84.790 2000 80.000 88.886 8O.vOO 80.884 (81.802) 81.048 (80.166) 80.060 80.000 80.116 30.000 80.056 80.000 80.680 (81.467) 86.679 S4.112 2001 80.000 88.66 80.000 80.847 80.000 81.172 80.000 80.067 (80.270) 80.128 (80.166) 80.060 WO.O00 80.616 (80.486) 86.966 86.620 2002 80.000 88.768 30.000 80.860 WO.OD 11.310 $0.000 80.074 80.000 80.142 30.000 80.068 80.000 80.661 30.000 86.366 86.866 2003 80.000 81.462 80.000 80.082 80.000 30.167 30.000 80.067 30.000 81.788 81.768 2004 80.000 80.090 80.000 30.178 30.000 80.071 30.000 80.a34 80.884 2006 10.100 80.099 80.000 30.190 30.000 80.076 80.000 80.864 80.364 ERR 90.9 1 126.9 3 40.6 X 14.6 3 18.7 3 14.1 S 49.4 S 81.61 rt? n x f v. REPIULICOF GUINEA-8ISSAU INFRASTRUCT1REREHABILITATION PROJECT ROADINFRASTUCTARE PROGRAM ECONOMICRATE OF RETURNOF REHABILITATIONOF UWAVEDROADS (US9 million) L 24 NIB R4 N2 R7 RB NI - GALOMAROR.CAIUM-BURUNTUMA CONTBOEL-CAMBAJU MAI9'TA-OUILEOE BUBA- CATIO NOVASINTRA-S.JOAO TOTALS -______------______------CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL CAPITAL NET YEAR COSTSBENEFITS COSTSBENEFITS COSTSBENEFITS COSTSBENEFITS COSTSBENEFITS COSTSBENEFITS COSTSBENEFITS BENEFIT 1990 (30.210) (W.210) (30.210) 1091 (U.210) (36.268) (U.240) (U.226) (U.931) (U.931) 1992 80.016 (6. 18) (W.384) (W.-6S) (30.226) (81.169) (0. 138) (81.80) 1993 WO.N6 36.266 36.66 U0.219 89.06 80.220 WS.W6 30.969 (80.416) (11.416) W6.774 $0.368 1994 U6.00eo .316 3.66 3.284 U,e66 U9.223 u.eee 3.084 (30.104) (U6.19S) (te.299) 36.866 U.667 1996 8OC.O 3.396 O.OJ0 U.230 W.066 80.260 3-6.6 30.677 3.66Ue .162 u.ae *.a25 u.aea 81.679 1.0979 1996 W:oee .416 8.66 U6.246 89.00e U.269 .o6 U0.1U4 80.00 U9.169 U.o 0 6.0227 u.oe 81.211 81.211 - 1997 o6.oee 8.438 89.6 89.268 U9,6 6 .264 UM.ee 80.107 80.eeo *.146 6.66 $.#26 U6.oe 81.248 n1.243 19" 89ee e 0.481 u.oo 80.281 U.aee 8.276 80U.o 80-118 0 80. U.196 U.6ee $8.e26 u$.#W 31.360 1.36 199 0.ee e 0.4u6 (9e.24e) S.8-6 8 9a6 3U.280 80u.66 U-119 80.666 3.206 W-.No 6.68 (36.240) 81.486U 1.196 20eo W.me U9.6u 8.0e U.320 U.eee W. 361 86.66 8.125 *e.eeo *9.299 U6.oeo U.04 .oe 81.606 1.5606 2661 80.6Wo .666 U.0ee 3.42 a eee 36.316 U.oee 36.132 U.e U6.220 W.oe 0.642 u.W 81.687 U1.567 26o2 U-ee e .6.4 U.oee 80.a86 u,6ae u-a0 W.oo 8.189 U-.Me *.282 O.6e U.644 U.oeo 81.674 81.674 2096 o.e U0.u44 6.9f6 80.147 u.666 8.244 u.oee 6.6047 u.aoe U.762 W.762 2064 9.666 u369 u0.00 36.154 80. 36.267 M0.M U8.656 91.e 36.629 36.6 2966 36.66 U.216 u.o U9.f6sJ Ue6. .323 U0.328 ERR 40.73 X9.6s1 27.6 17.9 3 28.6 3 17.60 86. x :t : *t > n3 x -~~~~~~~~~~~~~~~~~~~~~ S tD.b - 108 - Annex 5-1 Attachment 3 REPUBLICOF GUINEA-BISSAU INFRASTRUCTUREREHABILITATION PROJECT ROADINFRASTRUCTURE PROGRAM ECONOMICRATE OF RETURNOF REHABILITATIONOF URBANSTREETS (USS million) URBAN STREETS URBAN STREETS BISSAU OTHER TOWNS TOTAL CAPITAL CAPITAL CAPITAL NET YEAR COSTS 8EN-FITS COSTS BENEFITS COSTS BENEFITS BENEFIT 1991 (88.226) (39.076) (W9.896) (39.39) 1992 (39.300) (30.159) (30.450) (80.469) 1998 (80.226) 3o.99" 3.031 (3.225) 39.981 (19.194) 1994 39.99m 39.173 9o.9" ae.ou4 n9.ee 39.207 3.297 1996 3O.99 3.196 ae.eee 9.039 se.ee 3.234 . .284 1996 30.999 39.212 Wo.999 39.643 *o.oee S9.255 *9.265 1997 3o.oeo 10.224 s3.996 10.647 ' o.699 19.271 30.271 1993 36.909 0.235 3o.99" 90.065 *e.ooo 3.286 30.285 196 3.169 30.246 (39.649) 30.062 (10.049) 39.809 30.261 2960 (10.049) 30.211 39.16" 83.056 (30.049) 30.267 39.213 2901 so.99" 30.274 39.999 39.059 39.999 39.388 30.338 2002 ao.ooo 30.280 *0.000 30.062 3o.996 ao.359 30.856 2003 ao.9oo U.302 ao.ooo 39.969 ao.ooo 39.386 39.368 2004 ao.ooo 8.318 3O.999 19.970 ao.oo6 ao.s8s 3n.38 29905 39.99 30.334 30.000 80.074 39.999 80.408 80.408 21.8 X 16.1 3 20.9 - 109 - Annex 5-1 Attachment 4 REPUBLICOF GUINEA-BISSAU INFRASTRUCTUREREHABILITATION PROJECT ROADINFRASTRUCTURE PROGRAM ECONOMICRATE OF RETURNOF REHABILITATIONOF FEEDERROADS (USt million) CAPITAL RECURRENCY SAVINGS EXOGENOUS NET YEAR COSTS COSTS IN VOC+TIME BENEFITS BENEFIT 1991 (83.390) (80.390) 1992 (80.520) (80.620) 1998 (10.390) (16.390) 1994 19.500 (89.182) 30.349 10.40f 10.664 19s Wo.50 (8t.182) 39.069 10.440 u9.627 19906 Su.e (1U.182) 19.361 $0.404 9.66s 1997 9.9e0 (10.102) U9.429 U.532 9.779 199 19.909 (30.182) 30.44"7 1.604 U9.849 1999 6O.50 (10.182) 10.478 30.644 10.936 2009 ome09 (U0.182) 0.5602 89.760 61.923 2001 80.909 (10.102) 80.58 W. 766 *1.131 2092 S.m0 (10.182) 10.59 19.s66 11.243 2098 W.m09 (80.102) 10.603 6.944 31.365 2004 39.090 (10.132) 10.640 81.936 11.494 2095 1.00 (60.182) 66.681 11.140 31.639 ERR 88.7 S NOTE: It was assumedan average traffic of 20 vpd for all fe-der roads REPUBLICOF GUINEA-6ISSAU WNFRASTRUCTUREREHABILITATION PROJECT ROADMADNTENANCE OPERATIONS ECONOMICRATE OF RTURN OF ROADMAINTENANCE (UI1 million) PAVD ROADS UWAVEDROADS ROUTINEMAINTENANCE PERIODICMADNTENANCE ROUTINEMAINTENANCE TOTALS CAPITAL NET CAPITAL NET CAPITAL NET YEUR COSTS 8ENEFITS BENEFIT CAPITAL NET COSTS BENEFITS BENEFIT COSTS BENEFITS BENEFIT COSTS BENEFIT 1906 (89.4M) (89.4W) (M.519) (81.510) (3.660) (80.656) 1991 *8.0100 8.28 8U.286 (81.660) (81.56U) 88.000 S.on2 ".n72 ".001 86.206 89.201 810.111 W.C6 1992 89.66 8.276 80.276 JO._" 89.107 89.167 1990 5.00W "3.1M6# .196 U.0W 80.9.79 81.61 8.296 *e.29a 81.6e 8.116 U9.116 89.9 11.216 1994 U.OM *0.282 8U.216 u9.n 0 * .or 8.61.262 $8.14S U.143 *1.0W 89.282 U0.232 SU.sO U.6U7 1996K9.U0J 0.224 88.224 89.101 89.164 8U.184 1996 8111.1 JO._6 J .169 W.198 JO. 81*.U56 8_.176 89.176 9.800 8U.160 so.16S 8u.0oe U.112 U.112 U9.0S 1997 U.01 81.096 89.6 U9.48U 811.61_ *9.182 U1.132 ".01 89.976 ..070 * .0 "9.Mo 19o6 89.0W0 110.69 $9.09 1999 l081.0W 891.090 88.076 89.075 89.676 ERR 62.5 S 17.1 29.5 3 81.6 S NOTE1: Based on am year'e program;secondyear progtp willI be similar OTE 2: It weao*arned an averagetraffie of 226 vpd for paved roa.e and 65 vpd for unpaved roadb n x U'O REPUBLICOF GUINEA-BISSAU INFRASTRUCTUREREHABILITATION PROJECT ROADPROGRAM ECONOMICRATE OF RETURNOF CLOBALROAD PROGRAM (US&.million) GLOBAL PAVEDROADS tNAVED ROADS URBANSTREETS FEEDERROADS ROADMAINTENANCE ROADPROWfAM CAPITAL NET CAPITAL NET CAPITAL NET CAPITAL NET CAPITAL NET CAPITAL NET YEAR COSTS BENEFIT COSTS BENEFIT COSTS BENEFIT. COSTS BENEFIT COSTS BENEFIT COSTS BENEFIT 1990 (80.496) (80.496) (t0.210) (80.210) (81.660) (81.660) (82.266) (12.266) 1991 (11.890) (11.890) (80.981) (10.931) (10.300) (10.300) (80.390) (10.390) (11.650) (10.982) (4.561) (83.993) 1992 (31.295) 10.777 (11.169) 11.807 (10.460) (10.460) (10.520) (10.620) ($1.650) (S0.403) (14.964) 81.287 1998 (11.020) 11.670 (10.416) 80.858 (10.226) (80.194) (10.890) (80.890) (11.660) 10.227 (18.601) 11.671 1994 (10.490) 18.044 (30.299) 80.657 10.000 10.207 10.000 10.664 (81.560)' 10.884 (82.389) 86.268 1996 80.000 18.974 S0.000 11.079 10.000 10.284 10.000 30.627 10.000 83.020 10.000 36.934 1996 10.000 14.280 30.000 81.211 80.000 30.265 30.000 1o.68 1O.000 32.69 80.000 89.269 1997 10.000 4.658 10.000 81.248 10.000 10.271 10.000 10.779 10.000 82.617 So.ooo 89.496 1996 10.962 18.985 10.000 11.860 10.000 10.286 30.000 10.849 10.000 12.065 10.962 32.604 1999 10.48 14.790 30.240 31.190 (10.049) 30.261 30.000 30.936 30.000 81.608 10.629 to.669 2000 (81.467) 84.112 30.000 81.506 (10.049) 30.210 30.000 31.028 30.000 10.917 (11.616) 17.790 2001 (30.486) 86.520 3O.mD0 81.587 10.000 30.888 30.000 81.181 30.000 30.479 (30.486) 89.060 2002 30.000 8.6.6 80.000 01.674 10.000 30.360 10.000 11.243 10.000 10.178 0.000 89.796 2008 10.000 11.768 30.000 30.782 30.000 30.86 30.000 31.866 10.000 10.076 so.ooo 84.368 2004 10.000 10."4 WO.O0 30.820 30.000 3O.8 30.000 81.494 10.000 10.000 30.000o.033 2005 10.000 30.864 10.000 10.823 30.000 10.488 so. m 11.639 30.000 10.000 10.000 12.014 ERR 81.6 x 30.0 X 20.0 X *8.7 N J1.8 x 58.91s - 112 - Annex 5-2 Page 1 of 1 GUINEA BISSAU INFRASTRUCTURE REHABILIATION PROJECT Economic Rate of Return of the Overall Investment Package (US$ million) YR ROADS RODO- SILO JAPG TOTAL PROGRAM FLUVIAL DIATA CASH FLOW 1990 -2.255 -1.179 -0.745 -1.512 -5.691 1991 -3.993 0.130 0.349 0.563 -2.951 1992 1.287 -0.503 -0.152 0.636 1.268 1993 1.671 0.717 0.398 0.728 3.514 1994 5.256 2.511 0.462 0.821 9.050 1995 3.934 0.825 9.759 1996 9.269 0.825 10.094 1997 9.495 0.825 10.320 1998 8.504 0.825 9.329 1999 8.669 0.825 9.494 2000 7.780 0.825 8.605 2001 9.050 9.050 2002 9.796 9.796 2003 4.358 4.358 2004 3.036 3.036 2.005 2.814 2.814 EER 53.912 24.962 13.22t 44.222 47.902 OVERALL ERR 47.902 NPV t122 33.47 - 113 - Annex 6-1 Pag,e 1 of 2 GUINEA BISSAU INFRASTRUCTUREREHABILITATION PROJECT Documents in Project File Ref. No. Documnt 1. Estudo de Viabilidadeda Empresa SILO-DIATA (Vol I & II), by CESO CRL. 2. Organiza9Iodos Serviqosde Pessoal, by CESO CRL. 3. Manual de ProcedimentosContabilisticos e Financeiros, by CESO CRL. 4. Etude du Financementde l'EntretienRoutier et de la Fiscalit4 des Transports,by GroupementCADIC-PRC Engineering. 5. Estrategiapara a Formula9aoduma Politica de Transportes,by MES/SET. 6. Republic of Guinea Bisbau-TransportSector Memorandum (Report IBRD No. 7076-GUB)by AFTIN. 7. Etude de la R4organisationdes TransportsA4riens de Guine- Bissau (TAGB),by Louis Berger International,Inc. 8. SILO DIATA: Projecto de Reorganizag8ode TransportesUrbanos e Inter-Urbanos'Redimensionamento m . 9. Guinea-Bissau:Transport Demand and Bottlenecks,by Svein Joregensen. 10. FormaqAo e Desenvolvimentoda MAo-de-Obranos Sectores de Infraestruturase de Transportes,by CESO CRL. 11. Orgamento Geral do Estado 1989, by Ministerio das Finangas, Guini-Bissau. ; 12. Terms of Reference for TechnicalAssistance to PCU, TCU, TO, DGHU and Bissau Municipality. 13. Manpower Developmentand Training Program. 14. RODOFLUVIAL: - Investment Plan, FinancialAnalysis (1986-93) - Income Statement - Economic Evaluation - 114 - Annex 6-1 Page 2 of 2 15. SILO DIATA: - Investment Plan (1989-1993) - Balance Sheets (1986-1993 - Financial Statement 16. JAPG: - Traffic Growth ard Projections, Investment Plan (1989-93) - Balance Sheet, Income Statements (1e87-93) - Economic Evaluation 17. TAGBs - EstimatedOperating Result.s '1988-89) - EstimatedBalance Sheet, end 1988 SENEGAL oh~~~~~~~~~~~~~,t.l, A 0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 0 V.3415~ ~ ~ CHE LA~~~~~~~~~~4VEb1~ 1.~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ b PUR.OtUS-lI. (i-i LilA'S IRS~~~~~~~~~ ~~UIN MAURITANIA U~JEAO A (IA 056 fZAH lEA-A R C H I P F I A 0 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~UIEABISA RUC REHABILITATiaIONpiaUR A) GGUINEANFRASiT I 8RRA 70o1ro4/s PROJECTIVIE - ltetaisa Radae C=ll =K-,~~~LREL 8119A01F R,)X4~~ILE Ro.6 RchabilwtaW U.d., F-d., Ro SEPTEM