Documentof ILE g 0PY The WorldBank
FOROFFICIAL USE ONLY Public Disclosure Authorized Rqpt No.1333a-TO Public Disclosure Authorized STAFF PROJECT REPORT
THIRD HIGHWAY PROJECT
TOGO
Public Disclosure Authorized March 17, 1977 Public Disclosure Authorized
Western Africa Region Projects Department
Ths doeument a a d disribto and mnaybe mod by redpients _by in the Wfo e f. XIer o dutes. It ets my nt oherwie be diudod w1tho Wodd Dak authrlmton. CURRENCY EQUIVALENTS
Currency Unit CFA Franc (CFAF) US$1.00 CFAF 245 CFAF I million US$4,082
SYSTEM OF WEIGHTS AND MEASURES: METRIC
Metric System British/US System
1 meter (m) 3.28 feet (ft) 1 square meter (m2 ) 10.8 square feet (sq ft) 1 cubic meter (m 3 ) 35.3 cubic feet (cu ft) 1 kilometer (km) 0.620 mile (mi) 1 square kilometer (km2) 0.386 square miles (sq mi) 1 hectare (ha) 2.47 acres (ac) 1 metric ton (t) 2,204 pounds (lb)
ACRONYMS AND ABBREVIATIONS
BCEOM - Bureau Central d'Etudes pour les Equipements d'Outre-Mer (France) CERFER - Centre Regional de Formation en Entretien Routier CFT - Reseau des Chemins de Fer du Togo CIMAO - Ciments de l'Afrique de l'Ouest DIWI - Dr.-Ing. Walter Kg., Consulting Engineers (FRG) EDF - European Development Fund ER - Economic Return FAC - Fonds d'Aide et de Cooperation (France) FRG - Federal Republic of Germany GDP - Gross Domestic Product KfW - Kreditanstalt fur Wiederaufbau (FRG) MCT - Ministry of Commerce and Transport MEPS - Ministry of Equipment and Postal Services MRI - Ministry for Rural Infrastructure OPAT - Office des Produits Agricoles Togolais PWD - Public Works Department RD - Roads Division (Arrondissement Routes) RMWA - Resident Mission in Western Africa RTS - Road Transport Service SRCC - Societe pour la Renovation du Cafe et du Cacao USAID - United States Agency for International Development vpd - Vehicles per day
TOGO FISCAL YEAR
January 1 - December 31 FOR OFFICIAL USE ONLY STAFF PROJECT REPORT
THIRD HIGHWAY PROJECT
TOGO
Table of Contents Page No.
INTRODUCTION AND SUMMARY ...... i-ix
I. THE TRANSPORT SECTOR ...... 1
A. Geographic and Economic Factors Influencing Transport Growth ...... I B. The Transport System ...... 1 C. Transport Policy, Planning and Coordination ...... 4 Table 1 - Investments in the Transport Sector and Sources of Financing, 1971-1975 ...... 8 Table 2 - Planned Investments in the Transport Sector, 1976-1980 ...... 9
II. HIGHWAYS ...... 10
A. The Network ...... 10 B. Traffic ...... 10 C. Road Transport Industry ...... 12 D. Administration ...... 14 E. Planning ...... 16 F. Engineering ...... 17 G. Staffing and Training ...... 17 H. Construction ...... 18 I. Maintenance ...... *. 19 J. Financing ...... 20 K. Sector Lending ...... 23
III. THE PROJECT ...... 23
A. Project Description and History ...... 23 B. Project Cost and Financing ...... 31 C. Implementation ...... 34
D. Procurement ...... *.. 36 E. Disbursements ...... 37 Table 1 - Detailed Cost Estimates ...... 38 Table 2 - Cost Estimates for Technical Assistance ...... 39
IV. ECONOMIC ANALYSIS ...... 40
A. General ...... 40 B. Reconstruction of the Aneho-Tabligbo Road ...... 40 C. Construction of the Agou-Notse Road ...... 45 D. Other Project Elements ...... 46 E. Risks ...... 47
Thb documenthas a restricted distribution andmay be usd by recipients only in the performance of theirofficial dutis. Its contentsmay not otherwisebe disclosedwithout World Bank authorization. Table of Contents (Continued)
Page No.
V. AGREEMENTS REACHED AND RECOMMENDATION ...... 47
Attachment: Economic Re-Evaluation of the Construction Items Kept in the Second Highway Project After Cost Increases ...... 49
Annex: Documents Available in Project File ...... 53
Map: IBRD 12452 Togo Third Highway Project
This report, prepared by Messrs. Philippe Ostenc (Engineer) and Adhemar Byl (Economist), is based on information provided by the Government, the consulting firms DIWI (Germany), Gendron-Lefebvre (Canada) and BCEOM (France), and the findings of a highway appraisal mission to Togo in March 1976 consisting of MIessrs. P. Ostenc, A. Byl and H. Machenaud (Consultant). Additional reports and data related to the project available in the Bank are listed in the Annex. STAFF PROJECT REPORT
THIRD HIGHWAY PROJECT
TOGO
INTRODUCTION AND SUMMARY
Introduction
1. The proposed project would be the third Bank Group operation in the transport sector in Togo. The First Highway Project (Credit 131-TO, US$3.7 million, 1968) consisted of a four-year highway maintenance program and pre- investment studies, among others of the Agou-Notse 1/ road (51 km), one of the roads included in the proposed Third Highway Project. The first project was successfully completed at the end of 1973. The Second Highway Project (Credit 450-TO, US$8.7 million, 1973) comprised construction of one section of the main south-north road axis linking Lome with the Upper Volta border and of two secondary roads, additional technical assistance to PWD for high- way maintenance and to the Road Transport Service for highway transport organization, and preinvestment studies, including the Aneho 2/ -Tabligbo road (45 km), also part of the proposed Third Highway Project. The project is well underway, although construction of one of the secondary roads (Agou- Notse) had to be deleted, because of cost overruns on other project compo- nents. The economic re-evaluation of the two construction items kept in the Second Highway Project shows that both items are still justified: the econ- omic return of Blitta-Sokode is now estimated at 29% (22% at appraisal) and that of Sokode-Tchamba at 14% (16% at appraisal). The proposed Third High- way Project would include reconstruction of the Tabligbo-Aneho road, con- struction of the Agou-Notse road, purchase of highway maintenance and work- shop equipment, technical assistance to the Public Works Department and to the Ministry of Commerce and Transport, and various studies. The esti- mated project cost is US$15.3 million. Foreign exchange costs amount to US$11.0 million or 72 percent of total project cost.
A. TRANSPORTATION IN TOGO
General
2. Togo is a small country (56,785 km ) with a 50 km coastline on the Gulf of Benin. It forms a narrow, 600 km corridor between Ghana to the west and Benin to the east. Except for a long mountain range in the north along the border with Benin and in the center along the border with Ghana, Togo's terrain is flat and presents no major topographical obstacles to transport. Togo's northern neighbor is Upper Volta.
1/ Formerly Nuatja.
2/ Formerly Anecho. - ii -
The Transport Sytem
3. Togo's transport system is relatively simple. It is geared to meet the country's domestic transport needs and consists mainly of about 7,400 km of roads and of 436 km of railways linking-the new deepwater port of Lome, the nation's capital and economic center, with the rest of the country. There is also a phosphate wharf at Kpeme, which is connected to the railway and road network. Lome has the country's only international airport. Five other small airstrips, mainly in the north, are open to internal general and military aviation.
4. Road transport is the predominant mode. About 1,100 km of the road network are paved; three times more than in 1970. The network is densest in the south. The 717 km, south-north road, running the length of the country from Lome to the border with Upper Volta, forms the backbone of Togo's national highway network and is complemented by an east-west coastal road linking Lome with Accra and Cotonou. EDF is financing the Kante-Mango section (90 km) of the 214 km of the south-north axis that remain to be paved and may also finance the remainder with regional funds.
5. Togolese railway (CFT) operates three lines, Lome-Blitta (276 km) in a south-north direction, Lome-Palime (116 km), northwestward to the Ghana border, and Lome-Aneho (44 km), eastward along the coast. Extension of the network will take place with the construction of a 50 km branch line from the Lome-Blitta trunk to Tabligbo, site of the CIMAO regional clinker plant.
6. The free port of Lome was opened to traffic in 1968. Traffic, which has been increasing at an average annual rate of 13 percent since 1968, reached 590,000 tons in 1975, including some temporary traffic for Nigeria diverted because of the congestion of the port of Lagos. The port of Lome's estimated capacity of about 800,000 tons is expected to be reached in the early 1980's. The port authority is independent, well managed, finan- cially autonomous and basically self-supporting.
7. Air transport in Togo is only important for international traffic via the airport at Lome. Between 1970 and 1975 international traffic almost quadrupled. Interior traffic is marginal and limited to military and general aviation. There is limited need for interior air transport because of the good condition of the primary road network, which puts Lome within eight hours' travel of almost any part of the country.
Transport Planning and Coordination
8. The Ministry of Commerce and Transport (MCT) is responsible for overall transport planning and coordination. The coordination between transport modes, particularly between road and rail, was extensively stud- ied in the 1960's before major investments in the sector by EDF, KfW and IDA started. These studies led to the introduction of covenants in the First and Second Highway Projects to the effect that the Aneho and Palime lines should be phased out within 10 years after parallel roads were paved (completed in 1968 and 1971 respectively), and that the Blitta line should not be extended without satisfactory economic justification. - iii -
9. In 1976, the Association re-evaluated the situation and found out that the Palime and Aneho lines still incurred losses ($400,000 per year), but that the proposed fertilizer plant at Kpeme would generate a substantial volume of phosphate bulk traffic to warrant keeping the Aneho line open. The study also indicated that the Blitta line was incurring the heaviest losses ($1.0 million per year), and that CFT continues to be overstaffed and have low productivity.
10. At negotiations the Government explained that the three railway lines serve a useful role as passenger carriers and that it could not consider closing any of them. The Government pointed out that long-term regional devel- opment could justify the northward extension of the Blitta line in the 1980's. The Government asked that, instead of closing the lines, the Association finance under the proposed project a study for the improvement of railway operations. The Association did not insist that the lines be closed, but required that several conditions be met. First, the Government would carry out a study and implement a program (approved by the Association) to improve CFT's operations before December 31, 1979. Funds are included in the proposed project for that study; consequently the previous covenants requiring the closing of the Aneho and Palime lines were annulled. Second, with respect to the Blitta line, it was agreed that the provisions originally included in the Second Highway Credit, namely that the line would not be extended without satisfactory economic justification and that the Association be consulted prior to any major investment in CFT, were to be reincorporated into the proposed Credit Agreement.
11. Main transport issues, other than rail/road coordination and low railway productivity, discussed with the Government were the imbalance in expenditures for road construction and maintenance between the primary and secondary road network and the feeder road network (paras. 14 and 15) and the rationalization of the transport industry (para. 17). The Government is aware of the fact that Togo's prospective transport demand has evolved to the point where there is a need for strengthening the country's overall transport planning organization. To this effect the proposed project would provide for technical assistance to help set up, in the Ministry of Commerce and Transport, a Transport Planning and Coordination Unit that can give adequate and continu- ing guidance on different transport issues and transport investment needs. This unit would be established no later than March 31, 1978.
Transport Investments
12. Togo's transport infrastructure has grown rapidly in the last decade as a result of heavy investment in the sector, financed mainly from abroad (EDF, KfW, FAC, and IDA). From 1971 to 1975, about 25 percent of total public investment was earmarked for transportation, amounting to US$61 million or about US$12 million a year. About 55 percent of this amount was spent in the highway sub-sector, mainly for the construction of the south-north axis, and 35 percent for the expansion of the Port of Lome. For the period 1976-80 the Government plans total investments in the trans- port sector of almost US$143 million, more than half of which would be in the highway subsector. A third of this amount is again earmarked for the - iv -
completion of the south-north road axis. Other objectives include construc- tion or improvement of two small rail sections to serve ongoing industrial projects, completion of the expansion of the Port of Lome, and improvement of the airport at Lome and five regional airports.
The Highway Subsector
13. The highway network has been described briefly in para. 4. The size of the motor vehicle fleet is estimated at about 14,000 vehicles or 1 vehicle per 150 inhabitants. Between 1971 and 1975 traffic increased by about 8 percent or nearly twice the rate of increase of the gross domes- tic product.
14. The Roads Division (RD) of the Public Works Department (PWD) of the Ministry of Equipment and Postal Service (MEPS) is responsible for construction and maintenance of the primary and secondary road network. This division has been handicapped in the past by lack of experienced personnel and inadequate office space. The latter problem is being remedied by the construction of a new office building. The Ministry of the Interior, with assistance from PWD, is responsible for the maintenance and improvement of feeder roads. Certain regional and agricultural development agencies also undertake limited feeder road construction and maintenance. SRCC and SORAD Maritime, for instance, are carrying out feeder road construction and improvement programs under the Small-holder Cocoa-Coffee Project and the Maritime Regional Rural Development Project; both are financed by IDA. A feeder road component would also be included in a forthcoming IDA-financed cotton project. However, no adequate overall financial or administrative structure exists for these road programs. The proposed project would provide for a study on organizing feeder road construction and maintenance to be carried out before June 30, 1978.
15. Expenditures for maintenance of the primary and secondary road networks are financed almost entirely from PWD's ordinary budget. PWD's ex- penditures for maintenance of the primary and secondary roads are adequate, while annual expenditures for feeder roads are insufficient ($400,000 per year). Following the conclusion of the feeder roads study (para. 14), the Association would consider a separate feeder road project focusing mostly on organization and maintenance.
16. Short-term planning for primary and secondary road construction and maintenance is done annually in conjunction with the preparation of MEPS's budget. There is no overall coordination of road planning, and until recently there was no systematic long-term highway planning; projects were selected on an ad hoc basis. In order to improve road planning and also to develop the country's capability to undertake preinvestment studies, the proposed project would include technical assistance to strengthen the Road Planning and Design Unit within the Roads Division.
Road Transport Industry
17. At present all road transport in Togo is in private hands except for a few bus lines, which are operated by the railway authority, and the newly v created semi-public national transport organization, Togo-Route 1/. The Government, anxious to develop the traffic of goods through the port of Lome to and from Mali, Upper Volta, Niger and Nigeria, negotiated agreements with these states on the division of international truck traffic among their nationals. To ensure that Togo has enough equipment to carry its share of the goods, the Government established Togo-Route, equipping it initially with 55 trucks and 70 trailers. Too fast a development of Togo- Route might lead to overcapacity in the trucking industry. Therefore, at negotiations, the Government agreed that a study of current and future supply and demand for surface transport would be carried out by the pro- posed Transport Planning and Coordination Unit.
18. In 1969 the Government created a Road Transport Service (RTS) to organize and oversee road transport. RTS activities include inter alia transport licensing, studying costs and preparing transport legislation. This agency has been hampered by lack of qualified personnel. The ongoing Second Highway Project provides for an expert to improve RTS's operations and train its staff. This expert is now being recruited.
Highway Sector Financing
19. The Government has pursued a conservative highway sector financing policy, with road user charges covering more than 100 percent of highway expenditures, except in 1975 when investments increased by almost 40 percent and coverage fell to 96 percent of expenditures. Continuing this financial policy, the Government doubled road user taxes in early 1976. The proposed Transport Planning and Coordination Unit would look into optimal economic and financial policies in this matter.
B. THE PROJECT
Project Description
20. The proposed project has, as its main objectives, the improvement of two important roads serving mainly agricultural areas and the preparation of future projects through pre-investment studies. It would also initiate certain institutional reforms in the transport sector by strengthening the Government's overall transport planning and coordinating capacity through the creation of a specialized unit in the Ministry of Commerce and Transport. In addition it would continue the efforts begun under the two previous highway projects to build an efficient Public Works Department within MEPS by providing technical assistance and highway maintenance and workshop equipment. The main components of the project would be:
1/ Togo-Route is authorized to engage in international and domestic trans- port of both passengers and cargo, but has so far limited its interven- tion to international cargo traffic. - vi -
(a) reconstructionof the Aneho-Tabligboroad (45 km) to two-lane paved standards;
(b) constructionof the Agou-Notse road (51 km) to two-lane gravel standards;
(c) provision of technical assistance and fellowshipsto the Roads Division for road maintenance,and road planning and design; and to the MCT for overall transportplanning and coordination;
(d) studies for improvingCFT's operations,and for organiz- ing feeder road constructionand maintenance;and
(e) preinvestmentstudies of the Bassar-Mangoroad (137 km).
21. The Aneho-Tabligboroad crosses the densely populated Maritime Region. The road ends at Tabligbo, close to the site of the CIMAO clinker plant. The road was paved between 1957 and 1963 as a low-standard,one- lane road. Several sections, subject to frequent floodings,have dete- riorated. The road would be reconstructedas a two-lane paved road.
22. The Agou-Notse road was to have been constructed under the Second Highway project, but work was postponed for lack of funds resulting from cost overruns on other items. The planned two-lane, 8 m wide gravel road would link two agriculturalmarketing centers and would help open up an isolated,sparsely populated area to migration and agriculturaldevelopment.
23. Under the First Highway Project, the Roads Division of MEPS was supplied with new maintenance equipment. The proposed project would finance the procurementof 23 additional trucks, as well as equipment for the Equip- ment Division workshop in Sokode.
24. Technical assistance to the Roads Division would consist of pro- vision for about (i) 77 man-months of expert services to complete the training of road maintenance and central workshop staff and to fill organizational gaps which still hamper productivity;and (ii) 20 man-months for the services of an engineer/economistto the Road Planning and Design Unit. There is also provision in the proposed project to strengthen the soil-testingroad labora- tory by closely associating it with the supervisionof constructionof the two project roads.
25. Technical assistance to MCT would consist of provision of about 72 man-months of consulting services to the Transport Planning and Coordina- tion Unit (TPCU). TPCU would inter-aliaassist the Government in solving the main issues in the transportsector and in formulatinga national transport policy. In particular,it would supervise the execution of the proposed studies for improving CFT's operations and for organizing feeder road constructionand maintenance. - vii -
26. In the past the main difficulty with technical assistance has been the lack of personnel for counterpart training. The Government has indicated that it would step up its recruitment efforts so as to provide TPCU and the Roads Division with qualified and experienced personnel in sufficient number to enable these units to carry out satisfactorily their respective tasks. The proposed project would also provide fellowships for four young DPW engi- neers to receive two years of supplementary education in Mali.
27. The study to improve CFT's operation would be directed at reducing the railway's losses by reducing operating costs, improving staff training and productivity, increasing tariffs and diversification of activities. The study for organizing feeder road construction and maintenance would define the most appropriate organizational framework and the needs and means to construct and maintain feeder roads in order to allow the Bank to appraise its proposed feeder road project.
28. A preinvestment study would be undertaken of the Bassar-Mango road in the northern part of the country. The area to be served by the road is underpopulated but has good agricultural potential. The study should be completed before December 31, 1979.
Project Cost and Financing
29. The total cost of the project, excluding taxes, is estimated at US$12.9 million, of which foreign exchange expenditures are US$11.0 million, corresponding to 85 percent of the total. The proposed IDA credit of US$10.0 million would finance 78 percent of the total project cost (net of taxes). The Government would finance the remaining 22 percent (US$1.0 million of for- eign exchange and US$1.9 million of local cost). Taxes are estimated at US$2.4 million.
Project Costs (US$ million)
Cost Local Foreign Total Taxes Total Net of Taxes
Aneho-Tabligbo 0.7 4.2 4.9 1.4 6.3 Agou-Notse 0.6 3.0 3.6 1.0 4.6 Equipment Purchase 0.1 0.9 1.0 - 1.0 Consultants Services /1 0.5 2.9 3.4 - 3.4 TOTAL 1.9 11.0 12.9 2.4 15.3
/1 Including studies and supervision of the two roads.
30. The cost of reconstructing the Aneho-Tabligbo road has been esti- mated on the basis of unit prices and quantities from the detailed engi- neering, to which 10 percent for physical contingencies has been added. Construction costs for the Agou-Notse road are based on the lowest bid received in November 1974, when the road was originally scheduled for - viii -
construction (para. 22). Due to the generally poor soil conditions found in the area, physical contingencies of 15 percent of the total amount of works have been added. Costs for the road maintenance and workshop equipment are based on consultants' estimates using CIF prices of January 1976. All project base cost estimates have been updated to January 1977 prices and appropriate price contingencies have been added beginning January 1977. Consulting services are estimated to cost an average of $6,900 per man-month.
Implementation
31. The Ministry of Equipment and Postal Services, through its Public Works Department, would be responsible for project implementation, except for the Transport Planning and Coordination Unit and the studies for improving CFT's operations and for organizing construction and maintenance of feeder roads which would be the responsibility of the Ministry of Commerce and Transport. The proposed project would take nearly four years to complete (April 1977 to December 1980). Technical assistance for the maintenance program under the Second Highway Project, which was to end early in 1977, would be extended for another two years. Technical assistance for the Plan- ning and Design Unit would also be provided for two years as soon as the new PWD premises are completed in early 1978. Technical assistance for the Transport Planning and Coordination Unit would be provided for three years (1978-80).
Procurement
32. The reconstruction of the Aneho-Tabligbo road would be carried out by contract awarded after international competitive bidding in accordance with the Bank's Guidelines for Procurement. International bids for the construction of the Agou-Notse road were called and opened in 1974. The Association would not object to the Government awarding the contract to the bidder with the lowest evaluated bid of 1974, provided that the contractor extends the validity of his bid. Otherwise, bids would be called again on an international competitive basis. Road maintenance equipment would be procured after international competitive bidding in accordance with the Bank's Guidelines for Procurement. Workshop equipment amounting to US$50,000 (includ- ing contingencies) or less in the aggregate would be procured on the basis of local procurement procedures acceptable to the Association. Domestically manufactured goods would be allowed a preference of 15 percent, or the level of applicable duty, whichever is less, when comparing domestic bids with those of foreign manufacturers.
33. Construction supervision contracts would be awarded to the consult- ing firms which carried out the detailed engineering of the roads--Gendron Lefebvre for the Aneho-Tabligbo road and DIWI for the Agou-Notse road. Technical assistance for the continuation of the maintenance program would be procured by mutual agreement between the Government and the consultants Louis Berger International, Inc., who carried out the previous programs under the First and Second Highway Projects. Other technical assistance and study items would be carried out according to terms of reference satisfactory to the Association by qualified consultants. - ix -
Disbursements
34. The IDA credit would be disbursed to cover 57 percent of the total cost (including taxes) of the road construction works and 100 percent of the foreign exchange cost of equipment (or 60 percent of local expenditures for equipment locally procured) and 100 percent of the foreign exchange cost of consultants' services.
Benefits and Risks
35. The two roads would serve areas with considerable agricultural potential. The justification for the reconstruction of the Aneho-Tabligbo road is based on vehicle operating cost savings. In 1974 the road carried an average of 362 vehicles per day of which about 40 percent were trucks and the remainder passenger cars. Based on a 20-year economic life and an annual traffic growth of 10 percent p.a. in the first 10 years following reconstruc- tion and 5 percent thereafter, the economic return of the reconstruction of the road is estimated at 26 percent. Even under highly unfavorable assump- tions in the sensitivity analysis, the economic rate of return remains over 11 percent. The Aneho-Tabligbo road would also improve access to the CIMAO clinker plant.
36. A two-lane gravel road between Agou and Notse (51 km) was originally approved by the Board of Directors as part of the Second Highway Project, but cost escalation in other components of that project forced deferral of the road. This road would provide a reliable connection between a food deficit area near Agou and the food surplus area of Notse. Most importantly, it would open a new area for agricultural production, as the middle portion of the existing track is practically missing. Preinvestment studies first carried out between 1970 and 1972 were primarily based on an increase in value added to be produced in the zone of influence of the road. Additional studies in 1976 indicate that the project is likely to have a higher return (18% under conservative assumptions) than was originally appraised. As there are clear indications that enough complementary development is firmly planned for the road zone, it was not considered justified to develop a more elaborate economic justification of the whole rural development package. A large part of the benefits would be linked with immigration into the zone, a phenomenon which is rather spontaneous in this part of Togo, as Cabrais people from the north have a tradition of resettling in the region.
37. The institution building aspects of the project are important but the benefits are, of course, much less tangible. Improving the transport planning capacity of MCT is particularly appropriate since Togo's network has an important role to play in the development of a sound West African regional network serving the interests of landlocked and coastal countries alike. Improvements in the NEPS's capacity with respect to road planning and design are urgently required.
38. The main risk of the project is the continued slow response of the Togolese authorities, under the Second Highway Credit for example, to technical assistance components. Delays in the implementation of the technical assistance component of the proposed project would be serious, and close attention would have to be given to this aspect during supervision.
I. THE TRANSPORT SECTOR
A. Geographic and Economic Factors Influencing Transport Growth
1.01 Togo is a small country (56,785 km 2 ) with A 50 km coastline on the Gulf of Benin. It forms a narrow, 600 km corridor between Ghana to the west and Benin to the east. Except for a long mountain range in the north along the border with Benin and in the center along the border with Ghana, Togo's terrain is flat and presents no major topographical obstacles to transport. Togo's northern neighbor is Upper Volta, a land- locked Sahelian country.
1.02 Togo's population is about 2.3 million. Its gross domestic pro- duct (GDP) per capita, estimated at US$270 in 1975, is one of the fastest growing in Africa (4.4% per annum on the average between 1960 and 1973). However, rural incomes average less than US$100 per capita. In 1974 alone GDP grew by 43%, but this was mainly the result of soaring phosphate prices and substantial gains in prices for coffee, cotton and cocoa which are Togo's major export products. A slump in phosphate exports in 1975 coupled with a step-up in consumer goods imports generated by the 1974 boom resulted in a loss of almost one third of the foreign exchange reserves.
B. The Transport System
1.03 Togo's transport system is relatively simple. It is geared to meet the country's domestic transport needs and consists mainly of about 7,400 km of roads and of 436 km of railway linking the new deepwater port of Lome, the nation's capital and economic center, with the rest of the country. There is also a phosphate wharf at Kpeme, which is connected to the railway and road networks. Lome has the only international airport; five other small airstrips, mainly in the north, are open to internal general aviation traffic.
(a) Highways
1.04 Details of the highway subsector are discussed in Chapter II.
(b) Railways
1.05 There are three railway lines in Togo operated by the Reseau des Chemins de Fer du Togo (CFT):
a. The Lome-Blitta central line extending from the capital 276 km towards the north;
b. the Lome-Palime line, called the "border line," extending 116 km northwestward to the cocoa and coffee growing area bordering with Ghana; and -2-
c. the Lome-Aneho 1/ coastal line extending 44 km eastward via Kpeme (36 kim),site of the phosphate wharf and pro- cessing plant.
All lines are meter gauge and in rather good condition. But they have in- curred financial losses over a number of years; closure of some of them has been under considerationsince 1968, when the Associationmade its first loan to Togo (see para. 1.20).
1.06 A fourth line, the CIMAO line (50 kim),is in an advanced stage of planning; it will extend from km 19 on the Lome-Blitta line to Tabligbo, the site of a regional clinker plant, for which financing was recently secured from IBRD and a group of other lenders.
(c) Seaports
1.07 As the coastlineon the Gulf of Benin offers no natural protection against the ocean, Togo's port needs could only be solved by recourse to major engineeringworks. Since 1900 four wharves have been successively constructed at Lome while plans were made for a regional port serving both Togo and Benin. After large phosphate deposits were discovered close to Kpeme, 28 km east of Lome, the Togolese phosphate mining company went ahead with the constructionof a phosphate wharf at Kpeme in 1955. It was not until May 1959 that the Government of Togo decided to abandon the regional port idea and to build a Togolese deepwater port 8 km east of Lome. Con- struction started in July 1964 with financing from the Federal Republic of Germany (FRG), and in 1968 the deepwater port opened for traffic. There is no interior waterway traffic in Togo.
(i) Deepwater port of Lome
1.08 The autonomous port of Lome is a free port 2/ of some 675 ha with three major berths for ships of a maximum length of 270 m and a 9.5 m draught, and one minor berth for ships with maximum draught of 5.5 m. The port also has about 1,000 ha available for industrial installations. There is a separate, small modern fishing port, sometimes used for loading coastal traffic for Nigeria. A new mole is under construction,which, in addition to an extra berth for general cargo, will provide room for petroleum tankers and mineral ships (for clinker from CIMAO). At present petroleum tankers anchor offshore at a sea-line with a 230-ton per hour capacity. When the new mole is completed the port will be able to handle about 800,000 tons of general merchandise imports and exports per year (a one-third increase). No further extension of the port is planned before 1980.
1/ Formerly Anecho.
2/ Port franc: Goods can enter and leave withouL paying duty, and the port is open to vessels of all nationalities. - 3 -
1.09 Traffic in the port oL Lome increased from 444 ships and almost 253,000 tons in 1968 to 760 ships and almost 590,000 tons in 1975, which corresponds to an average annual traffic growth rate of about 13%. Most imports are related to the cement industry (100,000 tons), petroleum needs (62,000 tons) and ships' supplies (80,000 tons). A major part of the lat- ter (some 55,000 tons), as well as some 45,000 tons of transit traffic for Nigeria, is related to temporary congestion in the port of Lagos, Nigeria.
1.10 The Port Authority is independent, well managed and basically self- supporting. A Togolese director was appointed in 1976. Technical assistance from the FRG has been progressively phased out on the operating side, and the same will be done later on the planning side.
ii) Wharf at Kpeme
1.11 The Kpeme wharf is a modern structure that allows the export of at least three million tons of phosphate per year and the import of the petroleum necessary for the exploitation of the phosphate mine.
(d) Air Transport
1.12 Air transport in Togo is only important for international traffic via the modern airport of Lome; interior traffic within the ccuntry is lim- ited to military and general aviation. There is little need for interior air transport, because of the good condition of the primary road network, which puts Lome within eight hours' travel of almost any part of the country.
i) International traffic
1.13 Togo is a share-holder in the multinational company Air Afrique. Air Togo still exists as a company, although its activity is limited to representing and servicing other airlines in Togo and to three round-trip flights a week between Lome and Lagos. There is a total of 27 flights a week into and out of Lome. The number of passengers coming through Lome increased from less than 10,000 in 1962 to more than 115,000 in 1975, and freight traf- fic increased from 206 tons in 1962 to 3,284 tons in 1975.
1.14 The airport of Lome has a runway 2,400 meters long and 45 meters wide, with a bearing capacity of 140 tons. The airport is equipped with an instrument landing system (ILS). It has three parking stations for jets and a new airport hall (4,000 m ) which can handle up to 500 passengers at the same time. With minor additional investment, the airport seems able to serve Togo's needs for the foreseeable future.
ii) Interior air traffic
1.15 As already mentioned, there is very little air traffic in the in- terior and no commercial flights. There are a:ir strips at Dapaon (formerly Dapango), Lhe northernmost city, Mango, Lama Kara, Sokode and Atakpame, of which Dapaon and Lama-Kara are accessible by DC-3. Most of these air strips are equipped with radio facilities. -4-
C. Transport Policy, Planning and Coordination
1.16 The Government's economic objectives are incorporated into Five- Year Plans for Economic and Social Development prepared by the ministry in charge of planning 1/ in cooperation with the ministries in charge of imple- menting them. Under the Second Plan (1971-1975) the Government's major objective in the transport sector was to pave most of the south-north road axis, providing a hinterland for the port of Lome. The axis has been paved except for the last 214 km (para. 2.01).
1.17 Investment expenditures in the transport sector between 1971 and 1975 amounted to CFAF 15 billion (US$61 million) or about US$12 million per year. This was about 25% of total public investment in all sectors of the economy in that period. About 55% of this amount was spent on the improvement of the highway network (para. 2.29). Some 86% of investment expenditures in the sector was financed from abroad (EDF 34%, KfW 30%, IDA and FAC 7% each, others 8%). The remaining 14% was financed from local sources, mainly the Government's investment budget (Chapter I, Table 1). Under the Second Plan, total spending exceeded financial targets by 3%, but project completion data (in physical terms) are not available.
1.18 The Government has prepared an ambitious draft Third Plan for the 1976-1980 period, but due to a fall in export prices, mainly of phosphates, it was compelled to reduce investments foreseen in its original plan and may have to make further reductions 2/. According to the latest figures avail- able the Government plans to invest a total of almost CFAF 35 billion in the transport sector (US$142 million), more than half of which (nearly CFAF 19 billion or US$77 million) would be in the highway subsector (Chapter I, Table 2 and para. 2.15).
1.19 In the draft Third Plan, the Government identifies transport infra- structure as one of the priority sectors. It specifically lists the following objectives for that sector:
a. Completion of the ongoing expansion of the Port of Lome and preparation of the port's industrial zone;
b. Construction (50 km) and rehabilitation (60 km) of two small railway lines serving industrial projects of a regional character (clinker and fertilizer plants);
1/ At present the Ministry of Planning, Industrial Development and Adminis- trative Reform.
2/ Figures used in this report are those from Troisieme Plan Quinguennal de Developpement Economigue et Social 1976-1980 (en chiffres) which is a revised version of the figures contained in Plan de Developpement Economigue et Social 1976-1980-Projet. It was published early in 1976 and was still the latest set of figures available when this report was prepared. -5-
c. Reorganizationof the Road Transport Service (para. 2.07) to achieve better coordinationbetween road transport and other modes of transport and to reduce transport costs;
d. Completionof the road network so that it can adequately serve the whole country;
e. Improvementof the existing airport of Lome and a study of the future location and cost of a new airport, farther away from the city, so as not to hinder the city's devel- opment; and
f. Improvementof five regional airports and study of a new large national airport in Niamtogou, north of Lama-Kara.
These five-yearobjectives seem to be listed in the right order of priority and are basically sound except for the absence of a major effort for feeder roads and the Government'splans for air transport,which appear too ambi- tious for a small country with a modern internationalairport, a good pri- mary and secondaryroad network and with more pressing investment needs especially in the agriculturalsector.
1.20 The coordinationof transportmodes in Togo, particularlybetween road and rail, was carefully studied in the 1960's before major investments in the sector by EDF, KfW and IDA started. These studies led to the con- clusions that the Lome-Palime line and the Lome-Aneho line should be phased out, and the Lome-Blitta line should be extended by a paved road rather than a railway. An independentstudy dated April 1973 confirmed these conclusions. Consequently,in the Credit Agreements of both the First and Second Highway Projects (Credit 131-TO, 1968 and Credit 450-TO, 1973), covenants were intro- duced which stipulate that:
(i) the branch lines of Lome-Palimeand Lome-Aneho should be phased out within 10 years after the parallel roads were paved (completedin 1968 and 1971 respectively)unless a feasibilitystudy establishes to the satisfactionof the Association that continued operation of the branches is economicallyjustified; and
(ii) the Lome-Blitta line should not be extended unless the Association is provided with satisfactoryeconomic jus- tification. Furthermore,the Government should consult with the Association concerning economic justification of any major investmentin CFT before deciding on its implementation.
1.21 In 1976 the Bank Group re-evaluatedthe situation and learned that the Lome-Palimeline continued to incur losses (US$400,000per year). The Lome-Aneho line, if the proposed fertilizerplant is built, may require -6- additional investmentsrather than closure because a substantialvolume of phosphate-associatedbulk traffic would be carried on the line. The main conclusionsof the study were that the railway continues to be significantly over-staffed,productivity is low and that the Lome-Blitta line has now become the line liable to incur the largest financial deficits (estimatedat US$1.0 million per year). It recommended that the Government should give serious considerationto closing the Lome-Blitta line except for the first 19 km, which will be rehabilitatedfor CIMAO, and that steps should be taken to gradually reduce CFT's staff and to redeploy the railway's younger staff and repair facilities to areas of expanding activity such as the new CIMAO line and passenger bus service.
1.22 The Government feels that the three railway lines, although incur- ring losses, still serve a useful socio-economicrole as passenger carriers, and that it would be politically impossible to consider closing them. Further- more, the Government is confident that long-term regional developmentswould justify the extension northward of the Lome-Blitta railway line in the 1980's and would transform CFT into a profit-makingorganization. The Government has commissionedconsultants to carry out the feasibilitystudy of this extension, which would serve potential mining sites.
1.23 Since there are similar transportdevelopment plans in other nearby countries, a consultant was engaged by the Bank Group to evaluate overall transport development in West Africa. The consultant found that, even under favorable assumptions,no extension of the Lome-Blitta line is economically feasible in the foreseeable future. As the closing of the two branch lines of Lome-Palime and Lome-Aneho would not substantiallyreduce the railway deficit and is no longer the main railway issue, the Association accepted deletion of the correspondingcovenant of the First Highway Project (para. 1.20(i)), provided that a study be made on ways to help CFT to improve its operations. The other covenants of the First and Second Highway Projects regarding future investmentsin the railways (para. 1.20(ii))were incorporatedin the Third Highway Project's Credit Agreement. The Association also agreed to finance the foreign component of the study for the improvementof CFT operations, to be completed not later than December 31, 1978 (para. 3.21). The Government has committed itself to take appropriatemeasures for the implementationof a program for the improvementof railway operations,as recommendedby the study and approved by the Association,not later than December 31, 1979.
1.24 Main transport sector problems, other than rail/road coordination and low railway productivity,are (i) the imbalance in expendituresfor road constructionand maintenancebetween the primary and secondary networks and the feeder road network (paras. 2.13, 2.15 and 2.31), and (ii) the need for rationalizationof the road transport industry (paras. 2.07 and 2.10). In- deed, the country's economic developmentand prospective transportdemand have evolved to the point where transport sector decisions can no longer be postponed. A consistent and detailed long-termplan of action must be worked out. The Government has agreed to strengthen the overall transport planning -7- organizationby creating a unit that can give adequate and continuing guidance on the different transport issues and transport investmentneeds. That transport planning and coordinationunit would also serve as a nucleus for transport policy making in the new Ministry of Commerce and Transport (MCT). A technical assistance element is included in the project (paras. 3.19 and 3.20) to help set up the unit. The Government has agreed to the terms of reference of the planning unit and also to review, with the Association,the recommenda- tions prepared by the unit. -8-
CHAPTER I TABLE 1
TOGO
Investments in the Transport Sector and Sources of Financing, 1971-1975 (in millions of CFAF)
1971 1972 1973 1974 1975 1971-75
ROADS AND BRIDGES 1391 1886 1132 1606 2231 8246
Construction including supervision 1212 1698 1073 1461 2111 7555 Lome-Tsevie-Atakpame-Blitta 681 881 840 349 - 2751 Blitta-Sokode-Kambole - - - 1 624 625 Sokode-Lama Kara 175 464 218 - - 857 Lama Kara-Kante - - - 786 551 1337 Lome-Palime-Atakpame-Badou 283 - - - - 283 Other 73 353 15 325 936 1702 Studies 99 39 71 82 291 Organizationof road maintenance 44 47 18 38 38 185
PORT OF LOME 302 - - 2826 2050 5178 - - -= - of which: Extension - - - 2826 2050 a/ 4876
AIR TRANSPORT 209 191 29 25 720 1174 of which: Extension Lome - - - - 700 700
RAILWAY TRANSPORT b/ 174 - 80 57 41 352 Track improvement 12 - - 45 9 66 Equipment purchases 162 - 70 - - 232 Renewal telecommunications - - - - 18 18 Studies (CIMAO) - - 10 12 14 36
TOTAL TRANSPORT c/ 2076 2077 1241 4514 5042 14950
Foreign Financing 1632 1509 1102 4211 3159 11613 European Development Fund 966 881 840 1627 701 5015 German Kreditanstalt 312 - - 2334 1900 4546 International Dev. Assoc. 179 164 37 117 558 1055 French Fonds d'Aide et de Cooperation 175 464 225 133 - 997 Local Financing 235 377 110 278 1163 2163 Govt's investment budget 223 377 100 221 1122 2043 Other (mainly railway auth.) 12 - 10 57 41 120 Unknown (air transport) 209 191 29 25 720 1174 a/ Six months only. - b/ Equipment purchases were financed by Kreditanstalt (1971) and the Investment Budget (1973). The rest of railway expenditures was supposedly financed from the rail- way authority's (CFT) budget. c/ Excludes air transport and port investments in last six months of 1975. Source: Data supplied by the Togolese authorities and the EDF. -9-
CHAPTER I TABLE 2
TOGO
t.ai3rfAdinvestMents in the Transport Sector, 1976-1980 (-n millions of CFAF)
1976 1977 1978 1979 i980 1976-80
?asJ TtlarFport 543 5784 3380 2510 1790 18901 Ruads and br d5es $087 5234 3380 2500 1780 17981 of which: Kan te-Mango-Upper V,-1:a 1600 1200 1800 1000 - 5600 Sokode-Bassar-Mangc 80C 1100 200 350 500 29n5 Yague-Zangabou - 1000 1100 - - 2100 Agou-Notse-Tohoun 500 535 125 300 30' 1755 Blitta-Sokode-Kambole 1450 - - - - 1450 District roads 155 155 155 155 155 775 Lama Kara-K'etao-Benin border - 600 - - - 600 Nyamassila-Benin 50 200 - 195 200 645 Natchamba-Awandjelo - - - 300 325 625 Lome-Ar.eho protection against erosion - - - 200 300 500 Road Transport Industry 225 225 - - - 550 Buildings PWD Lome + Subdivisions 75 275 - 10 10 370
Railways 859 2523 2576 1977 805 8740 of which: Construction CIMAO line - 2000 1608 1710 - 5318 Renewal Lome-Kpeme line 500 500 850 - - 1850
Port of Lome 80 80 80 1580 2080 3900 of which: Construction 2nd breakwater - - - 1000 1000 2000
Air Transport 605 730 340 560 875 3110
Lome airport 605 705 275 305 315 2205 Interior airports - 25 65 255 560 905
TOTAL TRANSPORT 6981 9117 6376 6627 5550 34651 = = _
Source: Togo, Ministere du Plan, Troisieme Plan Quinguennal de Developpement Economigue et Social 1976-1980 (en chiffres), Lome, Direction Generale du Plan et du Developpement 1976, draft. - 10 -
II. HIGHWAYS
A. The Network
2.01 Togo's road network comprises:
(a) two primary roads going from the capital of Lome (at the southwestern corner of the country) north to the Upper-Volta border (717 km) and east to the Benin border (48 km); the latter is a section of the important Accra-Lome-Cotonou Lagos coastal road;
(b) secondary roads (1,602 km) spreading from the above primary roads; and
(c) feeder roads totalling about 5,000 km.
The growth of the road network is given below (in km):
1970 1971 1972 1973 1974 1975 1976
Primary and Secondary Roads
Paved roads 376 412 685 735 1,050 1,050 1,138 Gravel and earth roads 1,511 1,588 1,352 1,303 1,118 1,123 1,229 TOTAL 1,887 2,000 2,037 2,038 2,168 2,173 2,367
Feeder Roads (estimated) 5,000 5,000 5,000 5,000 5,000 5,000 5,000
The two primary roads and about 587 km of the secondary roads are paved, ex- cept the last 214 km to the Upper Volta border. The remaining secondary roads are either gravel or earth roads (1,015 km). The feeder roads are generally dry-weather tracks.
B. Traffic
2.02 There are no valid statistics on the motor vehicle fleet, since the Road Transport Service registers new vehicles, but does not collect informa- tion on the withdrawal of vehicles from the fleet. However, assuming an average life span for each category of vehicle, it is calculated that the size of the vehicle fleet was about 14,000 in 1974, or about I vehicle per 150 inhabitants, which is a lower vehicle density per inhabitant than in the neighboring coastal countries except Benin. The table below lists the new vehicle registrations for the period 1970-1974 and the estimated vehicle fleet at the end of 1971 and 1974: Estimated Eife Fleet New Registrations Span Fnd- End- 1970 1971 1972 1973 1974 (years, 1971 1974
Passenger Cars 1,399 1,434 1,479 1,567 1323 8 7,400 10.00Q Vans 413 4`9 386 317 333 7 2,230 2,j40
Trucks 2.5-9 tons 62 197 158 6 iOl b ) <. over 9 tons 204 23 __ l 29 5 0 400 /f
Road .ractors 5 23 16 3 20 /t 70 Trailers 15 61 12 16 15 7 13u 130 Fi;, -s 0 8 10 4 30 30 ~p-±b'z½.iLV Y'ei4S ?5 16 30C 1.2 15 90 _ 110C
TOTAL 2,133 2,195 2,1.0) 2,081 I,P.O) 11,000 14,000
/1 These figures approximately coincide with those given by the transporters' syndicate UNATROT (Union Nationaie des Transporteurs du Togo).
2.03 During the three-year period 1972-1974, passenger car growth was about 10.6% p.a., while the number of all other vehicles increased by about 3.6% p.a. As a whole, the number of motor vehicles rose by 8.4% p.a. Ir. spite of the somewhat erratic rise in fuel consumption during the 1971-1975 period due to the 1973-1974 petroleum crisis, the 8.4% growth in vehicle fleet roughly coincides with the 9% average annual growth in fuel consumptice by road users in the somewhat longer 1971-1975 period as shown below (in cubic meters):
Average Annual 1971 1972 1973 1974 1975 Increase
Diesel oil 33,690 39,225 32,330 26,690 37,880 3%
Gasoline 22,612 27,795 33,030 33,020 41,412 16%
Regular 18,565 19,085 19,240 19,105 23,207 - Premium 4,047 8,710 13,790 13,915 18,205 -
TOTAL 56,302 67,020 65,360 59,710 79,292 9%
2.04 The Roads Division, RD (Arrondissement Routes) of the Ministry of Equipment and Postal Services (MEPS), is responsible for the collection of traffic data. RD's field subdivisions have carried out manual traffic counts on most roads since the early 1960's, but RD has been unable to process the data collected. Consultants reorganized traffic counts in 1974 under the - 12 -
Second Highway Project, and the 1975 data seem reasonablyaccurate. The Governmenthas purchased traffic counting equipment to check the manual counts at specific locations in 1976. In 1975, total traffic was estimated at about 260 million vehicle-km, and at about 300 million ton-km. Traffic on paved roads ranged from 150 to 2,000 vehicles per day (vpd) and up to 150 vpd on gravel and earth roads.
2.05 Togo's gross domestic product increasedby 4-5% p.a. in real terms from 1971 to 1975, while traffic is estimated to have grown at the same rate as the vehicle fleet, about 8% p.a. (para. 2.03), showing an elasticity of traffic to GDP of nearly 2. Economic growth in the second half of the decade is forecast at 5-6% p.a. Assuming the same elasticity of traffic to GDP as before, it is estimated that traffic growth will average between 8-10% p.a. during the 1976-1980period.
C. Road Transport Industry
2.06 Togo's road transport industry comprisesmany small firms. Local transportersowning one to five trucks provide transport for all general merchandise;two larger foreign firms monopolizepetroleum tanker traffic. Passenger transportationis provided by small enterprisesoperating station wagons and vans. Since 1973, it has also been provided by the railway authority,which operates six buses on the profitable Lome-Palime-Atakpame route. In March 1976, the Government, feeling that the lack of large, private trucks impeded the developmentof transit traffic to and from neighboring countries through the port of Lome, created a joint public-privatecompany, Togo-Route (para. 2.10).
2.07 In 1969, the Government created the Road Transport Service (RTS) to organize and oversee road transport,both on domestic and international routes. This covers a variety of tasks ranging from registeringvehicles, issuing driving licenses, and inspectingvehicles, to delivering transport licenses, preparing road transport legislation,and studying road transport costs. RTS lacks qualifiedpersonnel and thus is unable to collect the necessary informationand develop adequate policy guidelines for the Govern- ment. The ongoing Second Highway Project (Credit 450-TO, 1973) provided for an expert for a period of two years to improve RTS's operationsand train its staff. The Government recently took the necessary steps to hire the expert. In 1974, the Government created a Permanent Committee for Road Transport, comprising representativesfrom several Government agencies (includingRTS) and the private sector to advise the Governmenton road transport policies. The work of this committee,however, is impeded by the lack of data concern- ing transportationsupply and demand for both passengersand freight.
2.08 Maximum authorized gross vehicle weight is 38 tons, with a max- imum single axle load of 13 tons. The Governmentintends to design its legislationon vehicle dimensions and axle loads along the lines of stan- dards presently being consideredin the European Economic Community,which - 13 - should result in lower single axle loads. Starting in 1976, it also intends to enforce compliance with vehicle weight legislation through the use of several weighing stations located on the main road axis, since overloading seems to be widespread. The Association has drawn the Government's attention to the Credit Agreement's covenant regarding enforcement of axle load regula- tions. During supervision missions the Association will advise the Government on enforcement of these regulations and on making effective use of the weighing stations.
2.09 The average rates for freight and passenger transportation by road and rail are shown below:
Freight CFAF per ton-km Road Rail
General Freight 10-12 7-14 Petroleum 20-30 20.8 Bulk Freight 15-25 5.0
Passenger CFAF per pass-km Road Rail
Taxi and van 3.0-4.0 Railway bus 2.5-3.0 Railway 2.5-3.0
General freight and passenger transport rates are usually lower by rail than by road, but sometimes barely cover operating costs for either means of transportation. These low rates are maintained by the railway authority with the help of Government subsidies (para. 1.21) and by the private transporters by paying low wages, avoiding overheads and taxes, and postponing maintenance and depreciation. Specialized transport of goods, such as petroleum, is much more profitable, because the transporters have a virtual monopoly.
2.10 The Government, anxious to develop the traffic of goods through the port of Lome to and from Mali, Upper Volta, Niger and Nigeria, negotiated agreements with neighboring states on the division of international road traf- fic between Togolese truckers and those of each these countries. A freight office has been set up at the Lome harbor to enforce these agreements. To ensure that Togo has enough equipment to carry its share of international transport, the Government recently created a joint publicprivate transport company (Togo-Route). According to its charter, Togo-Route's purpose is to handle national and international transport of passengers and cargoes. As a first-phase development, Togo-Route bought 55 road tractors and 70 trailers for general cargo. Currently it concentrates on international traffic only, although it may enter domestic transport. A second phase is expected to begin in 1977, when the oil refinery under construction at Lome starts production. Togo-Route intends then to ship fuel to neighboring countries. It has no plans to enter passenger service. Too fast a development of Togo-Route might lead - 14 - to over-capacity in the trucking industry and subsequent protection of Togo- Route by the Government from direct competition with private transporters. The Government has agreed that domestic and international road transport needs would best be met through fair competition between the various transporters, and that a study of current and future supply and demand for surface transpor- tation was desirable so that adequate measures can be taken to avoid over- capacity in transport equipment. This study will be carried out by the Transport Planning and Coordination Unit to be established within MCT under the proposed project (para. 3.19).
D. Administration
2.11 The Public Works Department (PWD) of the MEPS, through its Roads Division (RD), is in charge of planning, construction and maintenance of the primary and secondary road networks, while the Ministry of Interior is respon- sible for feeder roads. Current PWD organization is shown below. RD has five field subdivisions comprising 18 sectors. The subdivisions, however, are also engaged in construction (mostly by force account) and maintenance of all Government buildings (except in Lome) under the supervision of the Buildings Division. All equipment for road maintenance and construction owned by RD is maintained by the Equipment Division, either at its main workshop in Lome or at its annex in Sokode. Since the Equipment Division is also capable of maintaining the equipment used on feeder roads by several Government agencies, the Government is considering having the Division provide this service. The necessary arrangements are expected to be implemented under the feeder road project which is in preparation (para 2.13).
2.12 PWD's present organization is satisfactory, except for RD which is not properly structured and which has suffered from a long period of uncertainty about construction of much-needed office space. The Government is to start construction of a new building for PWD in early 1977 for comple- tion by April 1978. In the meantime, office space will be rented temporarily. Plans for the reorganization of RD,were worked out by PWD with the assistance of consultants under the highway maintenance program. Under the proposed reorganization, RD would be divided into three units, one each for planning and design, construction, and maintenance. The number of sub-divisions would be increased from 5 to 11. The proposed project would assist the Government in implementing a new RD organization by providing technical assistance to the planning and design and the maintenance units (paras. 2.19 and 3.14 to 3.16). - 15 -
TOGO ORGANIZATION OF THE PUBLIC WORKSDEPARTMENT
DIRECTOR OF PUBLIC WORKS DEPUTY DIRECTOR OF PUBLIC WORKS
ADMINISTRATIVE OFFICEI
hPERSONNELOFFICE|
CONTRACT OFFICEl
4ACCONTINGOFFICE|
DIVisioNS ARCHITECTURE AN ODS GOVERNMENT EOUIPMENT TOWN PLANNING ] BUILDINGS EL Fl
LANNEX AT SOKODE
SUBDIVISIONS ATAKPA SOKODE LAMANSOUTH NORTH
SECTORS TAKPAME 1 OKODE 1 LAMA KARA MANGO 1 PALIME 1 TAKPAME 2 SOKODE 2 KANTE MANGO 2 PALIME 2 ANIE OKODE3 DAPAON bTEVIE *NOTSE BASSAR ANEHO
World Ba,lk-1622S
2.13 The Ministry of Interior is responsible for the feeder road network through its 21 District Offices (Circonscriptions). Because of the lack of funds provided in the National Budget for feeder roads, however, the District Offices only undertake some small manual maintenance operations with the technical assistance of PWD. Several agricultural agencies participate in construction and occasionally in maintenance of part of the feeder road net- work with the technical assistance of the Rural Engineering Division (Genie Rural) of the Ministry for Rural Infrastructure, MRI (Ministere de l'Equipe- ment Rural). These agencies fall into two categories. The first includes the five SORADs (Regional Agencies for Equipment and Development), which are auto- nomous public corporations with responsibility for all development activities within their regions. They maintain and improve a small number of feeder roads on a contract basis. The second category comprises several specialized public agencies concerned with the development of specific crops. This category includes the Societe pour la Renovation du Cafe et du Cacao (SRCC- Agency for the Development of Coffee and Cocoa), Societe Nationale des Palmiers a Huile (SONAPH-National Agency for Palm Trees and Palm Oil), Societe Togolaise - 16 - du Coton (SOTOCO-TogoleseAgency for Cotton), and the exporting agency, Office des Produits Agricoles Togolais (OPAT-Agencyfor Togolese Agricultural Products). This situation is being reviewed by the Associationin the course of preparing a possible feeder road project. The aims of this project would be (i) to correct the imbalance in constructionand maintenance expenditures between the primary and secondarynetwork and the feeder road network, and (ii) to organize a Government agency capable of constructingand maintaining the feeder road network, presumably within the newly created Ministry for Rural Infrastructure,as the existing agencies would need considerablestrengthening. The project includes consultantsservices to assist the Government and RMWA in defining the most appropriateorganizational framework for feeder roads and to help prepare a feeder road project (para. 3.22). The Association would also use the feeder road project as a vehicle for working out appropriatelabor intensivemethods for constructionand maintenance.
E. Planning
2.14 Until recently, there was no long-termhighway planning. All road constructionprojects were selected on a project-by-projectbasis, since the primary network and the major sections of the secondarynetworks are not ex- tensive and the Government concentratedits efforts on their improvement. In 1975, under the Second Highway Project, consultantsBCEOM (France) completed a survey of about.2,300km of unpaved roads, chosen from among the minor secondaryroads (1,000 km) and the main feeder roads (1,300 km). The study helped define five categories of road standards (para. 2.17) and priorities for the improvementof the roads under study. The most feasible improvement works (600 km of secondary roads) will be carried out mainly by RD betterment and regravellingbrigades (para. 2.26).
2.15 During the 1971-1975period, investment expendituresfor the primary and secondaryroad network averaged CFAF 1.6 billion (US$6.7million) annually (para. 2.29). The 1976-1980 Plan, as revised in mid-1976, contains a list of road transport investmentsfor a total amount of CFAF 19 billion (US$77 million) or an average CFAF 3.8 billion (US$15 million) per year, but with a major concentrationin the first three years (Chapter 1, Table 2). The list emphasizespaving the last section of the Lome-Upper Volta axis, Kante- Mango-UpperVolta border, and the constructionof a comprehensivenetwork of secondary roads. Some of the latter roads appear overdesignedand their justificationis based on political and social, not economic, considerations. Less than 5% of the 1976-1980expenditures will be for feeder roads unless the proposed feeder road project or agriculturalprojects including a feeder road componentcan alter the Government'spriorities. - 17 -
2.16 Short-term planning for primary and secondary road construction and maintenance is carried out annually in conjunction with the preparation of the MEPS budget. Detailed work plans and budgets for each subdivision and for the Equipment Division are drafted by RD and incorporated into the MEPS budget proposal. This proposal is then discussed with the Ministry of Finance. To improve MEPS's road planning, the proposed project will include technical assistance to RD for the strengthening of its planning and design unit (para. 3.16).
F. Engineering
2.17 For several years, the Government has been using the same standards within each category of road it constructed, although there are no official design standards for roads. The BCEOM study of 2,300 km of unpaved roads (para. 2.14) recommended that these standards be defined in five road categor- ies, comprising:
(a) simple earth roads;
(b) improved earth roads;
(c) gravel roads (8 m roadway);
(d) widened gravel roads (10 m roadway); and
(e) paved roads.
The main problem, however, is to systematically apply economic criteria in road design, since the Government has a tendency to overdesign secondary roads, while not sufficiently improving the feeder road network. The pro- posed RD planning and design unit (para. 3.16) should help focus the Govern- ment's attention on this problem.
2.18 All major road design is carried out by foreign consultants under RD supervision. There are only two small Togolese surveying firms, which are mainly engaged in cadastral surveys, and there is only a small local laboratory created by PWD for simple soil and material testing. The project would help PWD to develop its laboratory facilities (para. 3.17).
G. Staffing and Training
2.19 PWD's managerial personnel is largely local. There are 29 Togolese engineers in PWD, and only five technical assistance experts (four provided under the Second Highway Project for maintenance organization, and one under FAC bilateral assistance for management of the Equipment Division's Annex in Sokode). The Togolese engineers are graduates of the Civil Engineering College (Ecole des Travaux Publics, ETP) in Paris (France), universities 18 - elsewhere in Europe or the Polytechnical College of Bamako (Mali); and most of them have received practical training abroad. Under the Second Highway Project (Credit 450-TO, 1973), three engineers will be sent to France, Tunisia and Ivory Coast for 4 to 12 month stays. The first engineers completely educated in Togo graduated in June 1976 from the College for Industrial Mechanics (Ecole Superieure de Mecanique Industrielle, ESMI), which has a civil engineering section. However, many PWD engineers are still inexpe- rienced in highway engineering and administration, and a continuation of the technical assistance in highway administration and maintenance is there- fore still necessary for about two years (para. 3.14). Additional technical assistance is also needed for the strengthening of RD's planning and design unit (para. 3.16) and the road laboratory (para. 3.17). The consultants' key function would be to train their Togolese counterparts adequately to allow a smooth transition upon termination of their assignments. The project also provides for fellowships abroad to allow four engineers trained in Togo to receive further education in Mali (para. 3.18).
2.20 At lower levels, training courses for highway foremen, mechanics, equipment operators and road laboratory assistants are given by the Regional Center for Training in Highway Maintenance (CERFER) in Lome, created with the technical and financial assistance of USAID, FAC and EDF, and operated by Togo on behalf of the five countries belonging to the Conseil de 1'Entente: Benin, Ivory Coast, Niger, Togo and Upper Volta. Since 1964, 425 Togolese have attended the nine-month training sessions of CERFER, most of them as Government employees, and currently 20 are being trained there.
H. Construction
2.21 Several foreign contractors have established branch offices in Togo, as there are no regulations preventing them from operating in the country. They carry out about 75% of the total amount of public works. The remaining 25% is carried out by five domestic contractors and one Togo- lese-French contractor. Domestic contractors do not compete directly with foreign contractors, as they only supply materials and construct drainage and other minor civil works. They obtain contracts for these works through either joint ventures with or subcontracts from foreign contractors. Several domestic contractors, however, are growing and two or three of them in parti- cular intend to compete directly with foreign firms in a few years.
2.22 Development of the domestic construction industry is currently impeded by the lack of adequate equipment and working capital, as local dealers and banks are reluctant to give medium- and short-term loans to domestic contractors. Thus, they must finance their development mostly with their own liquid resources. The National Investment Corporation, SNI (Societe Nationale d'Investissements), created in 1971, was specifically designed to help domestic firms to develop by participating in their equity, guaranteeing their borrowings or by giving them medium- and short-term loans. But SNI is not yet completely operational, the two other national investment - 19 -
institutionshave not yet operated in this sector. The project is not suitable to help domestic contractors to solve their financial difficulties,since there are only three or four of them who could receive assistance.Development of the domestic constructionindustry could only be considered in the broader framework of a DFC operation.
2.23 Road constructionworks are generally carried Gut b- coultra&tawarded on the basis of competitivebidding. Important constriictionsupervfsion is mostly carried out by consultantsunder RD's directio-. SuudivisL-Ln>mads supervise small constructionworks.
I. aiantenarce
2.24 Maintenauce of the highway neetwcrk has freat iy imL01p )ved since 1969, when a fcur-year maintenance program was begun under the First Highway Project (1969-1973). The maintenanceprogram was followed up by a three-year technical assistance program under the ongoing Second Highway Project (1974- 1976). The first program aimed at setting up a Government road maintenance service capable of maintaining the primary (765 km) and secondary (1100 km) road networks and improving to gravel standards the last 400 km of secondary roads which were still earth standard. Existing highway maintenance equipment was repaired and necessary new equipmentwas purchased. PWD's workshops were rehabilitatedand extended, and a performanceaccounting system was intro- duced. Concurrently,most personnel received refresher courses, either abroad from equipment dealers and manufacturersor in Lome at CERFER and at the National Center for ProfessionalTraining. Consultants also gave intensive on-the-job training to personnel at all levels (1971-1972).
2.25 Reorganizationof maintenance operations,however, proved much more difficult to achieve. The five field subdivisionsremained directly in charge of all maintenance and most betterment works under RD supervision. All subdivisionswere equipped with mechanized units for reshaping and regravelling. Those subdivisionsresponsible for maintaining paved roads were also equipped with a patching-resealingunit. A betterment brigade for upgrading of earth roads was organized under direct RD management. The sys- tem was operationalfrom 1972 to 1974, but proved unsatisfactory,as only half the anticipatedwork was carried out. The main shortcomingswere: (i) the lack of coordinationand supervisionat the RD level; (ii) the un- economic use of equipment for scatteredworks; (iii) the poor preparation of the drainage system before gravelling some earth roads; and (iv) the lack of funds for operating expenses such as the purchase of diesel oil and materials.
2.26 In view of the above, PWD decided in early 1975 to reorganize maintenanceoperations. RD was given direct responsibilityfor all of the regravellingoperations previously managed by the subdivisions. All regravel- ling equipment was transferredto three new brigades, which are assigned to the various subdivisionsfor specific periods and with well-definedprograms. - 20 -
A second betterment brigade was created to upgrade earth roads. Preliminary results for 1975 seem to indicate an increase in the output of road regravelling and betterment,and show that the actual cost is competitive and might even be below current prices offered by contractorsfor similar work. Routine mainte- nance is still organized and carried out directly by the field subdivisions, and its quality is variable. It should improve when, under the project, RD's maintenanceunit is properly staffed and able to supervise all maintenance programmingand execution (para. 3.15).
2.27 Maintenance of road equipmentwas also extensivelyreorganized under the First and Second Highway Projects. Five operationallevels are defined: routine maintenance,periodic maintenance,small repairs, large repairs and general overhauling. The field subdivisionsperform routine and periodic maintenanceand small repairs in their workshops. Large repairs and general overhauls are carried out by the EquipmentDivision, either in its main work- shop in Lome in the south or at its annex in Sokode in the north. The Equip- ment Division is also responsiblefor ordering spare parts for all subdivi- sions and for periodic inspection of all equipment. The Division's perform- ance is adequate,although the large turnover of staff, who often leave for the private sector where salaries are higher, necessitatescontinuous train- ing of new personnel.
2.28 Most of the paved network is less than 10 years old and is generally in good condition. Some stretches,however, need a surface treatmentwhich has been delayed. Some southern sections of the Lome-Upper Volta axis also show deficiency in their pavement and require strengthening. The condition of the secondarynetwork varies but has improved in recent years. The main concern now is the maintenance and improvementof the feeder road network, for which no adequate financing or administrativestructure exists (para. 2.13)
J. Financing
2.29 Highway investment expendituresin the 1971-1975period were fi- nanced from two sources: (i) multilateraland bilateral aid (EDF 53%, IDA 13% and the French FAC 12% of total road investment);and (ii) the investment budget (22% of total road investments). Highway maintenance expendituresare provided almost solely by the general budget, which also finances minor improvementsand small equipment purchases. The table below summarizes total highway expendituresfor the primary and secondary road network in 1971- 1975: - 21 -
(in millions of CFAF) 1971 1972 1973 1974 1975 1971-75
Investment 1,391 1,886 1,132 1,606 2,231 8,246
Construction (including supervision) 1,212 1,698 1,073 1,461 2,111 7,555
External Financing 1,139 1,345 1,062 1,261 1,023 5,830 Government Budget 73 353 11 200 1,088 1,725
Equipment Purchases (IDA) 135 42 2 36 - 215
Technical Assistance 44 47 18 38 38 185
Studies 0 99 39 71 82 291
External Financing 0 75 20 50 48 193 Government Budget 0 24 19 21 34 98
Maintenance (including minor improvements) 315 376 430 427 552 2,100
Operating Expenses 227 275 322 327 447 1,598
Personnel and Overhead 88 101 108 100 105 502
TOTAL 1,706 2,262 1,562 2,033 2,783 10,346
2.30 Total expenditures for investment in the primary and secondary road networks have fluctuated during the last few years, because they have been financed mainly by foreign aid on a project-by-project basis. Expenditures for maintenance and minor improvements of primary and secondary roads in- creased at an average rate of 15% p.a. over the past five years, from CFAF 315 million (US$1.3 million) in 1971 to CFAF 552 million (US$2.2 million) in 1975 and represented, on average, 3.2% of the current budget expenditures. In 1975, maintenance expenditures amounted to about CFAF 209,000 (US$850) per km, which should be adequate provided funds are not used to finance major betterment works or overhead costs of PWD.
2.31 Expenditures for feeder road improvements are often provided from several Government agency budgets and are difficult to isolate because they are often a part of agricultural projects (para. 2.13). In the past, feeder roads were often financed by EDF and OPAT. The Association is providing funds for construction of about 100 km of feeder roads in the Palime area under an ongoing project for the improvement of small-holder cocoa and coffee pro- duction (Credit 503-TO) and has included construction of another 1,000 km - 22 - of rural roads under the Maritime Region Rural Development Project and a new cotton project being prepared. In recent years, however, only about 50 km have been constructed annually at a cost of about CFAF 80 million (US$0.3 million). Maintenance budgets for feeder roads have been small, amounting to about CFAF 30 million (US$120,000) for the District Offices, and CFAF 7 million (US$28,000) for SRCC. Although other data are not available, it can be estimated that total maintenance expenditures on rural roads have not exceeded CFAF 50 million (US$200,000) per year or CFAF 10,000 (US$40) per km, which is insufficient. This matter will be analyzed in detail in the proposed feeder road project.
2.32 Revenues from road users increased by almost 10% p.a. during the 1971-74 period. The 1975 revenues from road users were unusually low, as the Government reduced fuel taxes at the beginning of the year, and these taxes were increased twofold in February 1976. As a result, revenues from road users should also cover Government road expenditures in the coming years. Road investment expenditures increased almost by more than 12% p.a. and maintenance expenditures by 15% in the 1971-75 period. On the average, revenues from road users amounted to about 12% of road expenditures for the primary and secondary network in the past as shown below. The proposed transport planning and coordination unit will look into the implications of this policy (para. 3.19).
Average 1971 1972 1973 1974 1975 1971-75 ------CFAF million------
Customs duties and taxes on vehicle purchases, spare parts, fuel and oil 2,110 2,403 1,824 2,745 2,400 /1 2,296
Annual tax on public transporters 46 65 70 74 79 67
Annual tax on private vehicles 56 91 84 111 164 101
Other taxes 24 33 50 35 37 36
TOTAL REVENUES 2,236 2,592 2,028 2,966 2,680 2,500
TOTAL EXPENDITURES /2 1,706 2,262 1,562 2,033 2,783 2,069
(Percentage of coverage by revenues) (131) (114) (130) (146) (96) (121)
/1 Mission estimate.
/2 Not including expenditures for urban road infrastructure or feeder roads. - 23 -
K. Sector Lending
2.33 The institutions involved in transport planning and administration are still in the early stages of development, and the personnel requires additional training and experience to help it gain authority. The issue of transport coordination has not been and is still not being given sufficient consideration by the Ministry in charge of transport (MCT). After a series of studies on transport coordination in Togo (paras. 1.20 and 1.21), final decisions still have to be made on a number of critical transport sector issues (paras. 1.23 and 1.24). The Association examined with the Government the need to strengthen the overall transport planning organization. A trans- port planning and coordination unit will be created in MCT (para. 1.24) for which the project will provide technical assistance (paras. 3.19 and 3.20). To improve planning in the road subsector, which shows some shortcomings (paras. 2.14 to 2.16), RD's road planning and design unit will be strengthened and its staff will be trained under the project (para. 3.16). Once these two units are operational, the country should be one step closer to becoming eligible for highway sector lending.
III. THE PROJECT
A. Project Description and History
3.01 The project consists of:
(a) reconstruction of the Aneho-Tabligbo road (45 km) to two-lane paved standards;
(b) construction of the Agou-Notse road (51 km) to two-lane gravel standards;
(c) purchase of road maintenance and workshop equipment;
(d) provision of technical assistance and fellowships to the MEPS's PWD for (1) road maintenance and (2) strengthening of the road planning and design unit; and of technical assistance to MCT for overall transport planning and coordination;
(e) a study on improvement of the operations of the Togolese Railways (CFT);
(f) a study on organizing the construction and maintenance of the Togolese feeder road network; and
(g) preinvestment studies of the Bassar-Mango road (137 km). - 24 -
3.02 The Association's involvement in highway maintenance in Togo dates back to 1968, when a first highway credit was given to the Government for that purpose. The consultant firm Louis Berger was chosen to provide tech- nical assistance. The Agou-Notse road was first studied in 1972 by the German consultant firm DIWI with financing provided under the Association's First Highway Project. The construction of Agou-Notse was originally part of the Second Highway Project, but it had to be dropped because of lack of funds due to a large cost overrun on other construction items because of the 1973-1974 world-wide inflation. The economic reevaluation of the con- struction items kept in the Second Highway Project is given in an attachment to this report. It shows that the construction items, which are now practi- cally completed, are still justified. The 1972 feasibility study for the construction of Agou-Notse road, made by the German consultant firm DIWI, was updated in 1976 and the road has been reintroduced in the Third Highway Project. The Aneho-Tabligbo road was studied in 1975 by the Canadian con- sultant firm Gendron Lefebvre with financing provided under the Second Highway Project.
Reconstruction of the Aneho-Tabligbo Road
3.03 The Aneho-Tabligbo road (45 kim) crosses the densely populated Maritime Region (300 inhabitants per km ) where IDA and FAC will be he'ping the Government to increase agricultural output under the Maritime Region Rural Development Project. The road starts in Aneho at the intersection with the Accra-Lome-Cotonou-Lagos international road axis and ends at Tabligbo, an administrative and market center close to the CIMAO clinker plant for which financing was recently secured (para. 1.06).
3.04 The first stretch of the road (Aneho-Anfouin, 13 km) was paved in 1957 under the French trusteeship. It was thus one of the first paved roads in the country. The second stretch (Anfouin-Tabligbo, 32 km) was constructed in 1963 under FAC financing. Due to the scarcity of funds, the road was designed as a low standard, one-lane road (pavement width: 3.5 m; roadway width: 6.0 m). The following years, RD widened the pavement to between 4.5 and 5.0 m. In spite of costly maintenance operations, several sections have now deteriorated under rapidly growing traffic. The poor drainage of the roadbed has led to general rutting on both sides of the pavement, and potholes are forming more rapidly than they can be filled. An 8 km section was flooded in 1974 and the pavement destroyed. It was repaired temporarily by RD.
3.05 Reconstruction works would comprise a widening of the roadway to 9 m, and of the existing pavement to 6 m together with its overall strength- ening, a complete rehabilitation of the drainage system, and improvement of the vertical alignment on seven sections (totalling 7.2 km) to prevent flooding, minor improvements of the horizontal alignment. Detailed engineer- ing of the reinforcement was completed in December 1975 by consultants Gendron Lefebvre under the Second Highway Project. PWD will be assisted by consultants in supervising the reconstruction works. - 25 -
3.06 The existing alignment of the first 4.4 km chosen by the consultants is not ideal, as reconstruction of the road would start in the center of Aneho (30,000 inhabitants) at the bridge over the lagoon on the Lome-Cotonou road. The first 1.2 km of reconstruction works are on a main commercial street with a right-of-way 10 m wide (the cross section provides for a 7 m wide pavement and two 1.5 m wide sidewalks, with an underground storm drainage system). Then for the following 3.2 km the road winds, crossing a 70 m long bridge over a lagoon, to the village of Glidji before taking the general alignment, which is practically straight for the next 40 km to Tabligbo.
3.07 This 4.4 km alignment has two shortcomings: (a) it requires long- distance traffic to drive through one of Aneho's major streets, and (b) it unnecessarily increases the distance vehicles have to travel. The Government has agreed on the following changes, provided no major obstacle arises in acquiring land:
(a) in addition to the reconstruction of the existing 1.2 km crossing part of the city, a 500 m by-pass will be constructed to divert the long-distance traffic onto the Lome-Cotonou road, avoiding the city so as not to clog the main commercial street; and
(b) the road alignment of the next 3.2 km will be straight- ened, thus avoiding the village of Glidji.
Construction of the Agou-Notse -/ Road
3.08 Construction of the Agou-Notse road (51 km) to gravel standards has two ob4ectives: to open to agricultural development an isolated area of some 900 km , and to provide a reliable all-weather connection between Notse, an important food surplus center, and the Klouto-Agou area, which faces a con- tinuous food shortage. This road project constitutes the Government's first priority in the highway subsector.
3.09 Along the proposed alignment, the first 16-km section from Agou (Gadjagan) to the village of Kati is a track barely passable during the rainy season. The track crosses the Sio River just before Kati on a 20-m long, one-lane bridge built in 1931. After Kati, the track becomes a footpath on the following 20 km to the Haho River where a 32-m long, one-lane bridge was constructed in 1966 under the financial assistance of the FRG. The next 15-km section is an earth track barely passable during the rainy season.
3.10 The works proposed under the project would consist of constructing an 8-m wide, two-lane laterite road. The surfacing is restricted to a 20 cm wearing course of selected laterite materials. On about half of the total
1/ Formerly Nuatja. - 26 - length, however, the existing soils are of poor quality and require an addi- tional sub-base course. The design speed is 80 km/h, which is quite suitable given the flat terrain. A few sharp curves have been maintained at approaches to the two existing bridges, for which improvement is not presently justified. Slopes in the drainage region of the Agou Mountain are limited to 4.5% to avoid surface erosion. PWD will be assisted by consultants in supervising the construction works.
Purchase of Road Maintenance and Workshop Equipment
3.11 RD has two betterment and three regravelling brigades, equipped for the most part with equipment bought in 1971 under the First Highway Project (para. 2.26). Together, these brigades have a potential capacity of 200 km a year, and thus are well adapted for the periodic maintenance needed approxi- mately every six years on the 1,200 km of gravel and earth roads under RD's responsibility (para. 2.01). However, the trucks, bought after international competitive bidding, proved ill-adapted for the heavy type of work which they have to carry out. They have become subject to frequent breakdowns and must be reassigned to easier routine maintenance activities in the subdivisions. The proposed project would finance the procurement of four dump-t-lwks and two water tank trucks for each betterment brigade, and three dump-truc- regravelling brigade. In addition, one diesel tank truck and one nb maintenance truck would supply fuel and help to maintain the equipment - five brigades. This equipment (with estimated costs, net of taxes, as of January 1977) is listed below:
---Cost Net of Taxes--- Number CFAF Million US$'000
3 Dump Trucks (7 m ) 17 141.6 578 Water Tank Trucks (6,000 1) 4 33.2 136 Diesel Tank Truck 1 9.0 36 Mobile Maintenance Truck 1 7.1 29
Subtotal 190.9 779
Spare Parts (10%) 19.1 78
TOTAL 210.0 857
3.12 The project would also provide additional equipment to the work- shop of the Equipment Division's Annex in Sokode to increase its productiv- ity. The table below lists the equipment and its cost, net of taxes, as of January 1977: - 27 -
CFAF Million US$'000
Fork lift 2.5 10.2 Lubrication rack 2.0 8.2 Test bench for electric equipment 3.5 14.3 Tire dismounting apparatus 1.5 6.2 Battery charger 0.2 0.8 Accessories for machine tools 0.8 3.3 Photocopier 0.5 2.0
TOTAL 11.0 45.0
Technical Assistance and Fellowships to PWD
3.13 The First Highway Project provided for 241 man-months of technical assistance to RD and the Equipment Division under the Highway Maintenance Program (1969-1973), and the ongoing Second Highway Project provides for another 130 man-months as an extension of the previous program during the 1974-1976 period. This technical assistance has helped the Government to train operating staff, reorganize maintenance operations and improve the maintenance of road equipment (paras. 2.24-2.27). The main shortcoming of the technical assistance was its inability to train Togolese professionals and subprofessionals, because of the lack of Togolese counterparts and ade- quate premises in RD to accommodate new personnel. RD's dilapidated and overcrowded premises deterred the setting up of the maintenance unit. PWD wanted to appoint an engineer with several years of in-the-field maintenance experience to manage the maintenance unit, but could only find a subdivision head who first had to receive two years of additional education at the Engi- neering College of Bamako (Mali).
3.14 The Togolese engineer who was appointed head of the Equipment Division in 1973, early in the execution period of the project, was adequately trained, but three additional Togolese professionals (the head of the main- tenance unit, the head of the central workshop and the equipment inspector) were only appointed in January, February, and September 1976 respectively. Two key positions, the maintenance inspector and the head of the betterment brigades, are still vacant. It is thus necessary to extend technical assis- tance for highway maintenance under the proposed project in order to complete the training of local staff for a period of up to two years and to fill organizational gaps which still hamper productivity. The main task of the consultants will be to continue to train the managerial staff, as well as the clerks and technicians who will be hired as soon as the maintenance unit can occupy larger premises (para. 2.12).
3.15 The technical assistance for maintenance, not including the road planning and design unit (para. 3.16) and supervision of construction work, would comprise 77 man/months divided as follows: -28 -
(i) a road engineer and mission leader (for a 22-month period) who would train the chief of the maintenance unit, advise the head of RD on maintenance matters, and define and superviseall training acti- vities;
(ii) a maintenanceadvisor (22 months) who would advise the maintenance inspectorand field subdivisionheads in the executionof all manual and mechanized mainte- nance works carried out either by the subdivisions with their own equipment and staff or by the regravel- ling brigades, and would train Road Sector heads;
(iii) a road foreman (11 months) who would advise the head of the betterment brigades and train their staff; and
(iv) an equipment advisor (22 months) who would advise the chief of the Equipment Division and complete the train- ing of the Central Workshop staff.
The consultants'terms of reference have been agreed upon. In order to guarantee adequate use of technical assistance and its total phasing out at the end of two years, agreement has been reached on the provision of suffi- cient local staff to operate the maintenanceunit not later than October 1, 1977. Dispatchingtechnical assistanceexperts will be subject to availa- bility of counterpartson all positions.
3.16 The RD intends to strengthen its planning and design unit in early 1978 (para. 2.12), and will need a road engineer/economistfor 20 months to help organize the unit and to train the local staff. The project will provide necessary funds to hire a consultant for this task. The planning and design unit will be in charge of preinvestmentstudies and planning. Large prein- vestment studieswill still be carried out by foreign consulting firms, which the unit will supervise,while undertaking the smaller studies itself. In the economic and planning fields, the unit will first have to collect and analyze traffic data, vehicle operating costs, and constructionand maintenancecosts, and then assess benefits from road investmentsversus benefits from road maintenance. It will then prepare road investmentplans and the annual investmentbudgets. Its terms of reference have been agreed with the Govern- ment. In order to guarantee maximum benefit from the technicalassistance, agreement has been also reached on the provision of adequate managerial and operating staff to run the unit not later than May 1, 1978.
3.17 PWD also intends to strengthen its soil testing laboratorywhich is still underequipped. Some additional equipment is being purchased under the Second Highway Project, and a new building, currently under construction, should be ready by the end of 1977. The road laboratorywould be set up - 29 - as a self-supporting, autonomous agency under the assistance of the French CEBTP (Centre Experimental de Recherches et d'Etudes du Batiment et des Travaux PuK 3 ics), which manages or assists several state-owned road labora- tories in French-speaking Africa and has already carried out various assign- ments for RD. The project would directly support the development of the laboratory by closely associating it with the supervision of construction of the Aneho'Tabligbo and Agou-Notse roads. The laboratory would be respon- sible for executing all material testing and would second the necessary per- sonnielaDel eqWiprncrit to the two consultants' teams in charge of construction supervisjot.} These se)vices would be financed under the proposed project as constructiou) supeyvis,ioi expenises. If the road laboratory were not able to provide sUf b services from the beginning of construction, the super- vising conqsu.i:i-iswould make their own arrangements, probably at a higher cost.
3,18 TrJ10(p:JeT also provides for four fellowships to allow four young DPNW C' S,luatedw'lg-" from Togo's College (para 2.19), to receive two years sinp,,Icmentaiyeducation at the Polytechnical College of Bamako (Mali).
Technical Af;isaijce to MCT
3.19 The Government has agreed to create a Transport Planning and Coordination UDit within the Ministry of Commerce and Transport in order to strengthen overall transport planning and assist in solving the main issues in the transport sector (paras. 1.20 to 1.24). In general, the unit will:
(a) organize collection of the necessary data and then define an optimal transport policy for the country;
(b) plopose this optimal policy to the Government;
(c) piepare future Five-Year Development Plans and follow the ib,lementation of the ongoing Plan in the transport sector; and
d) coordinate transport modes, particularly rail and road.
The unit will also directly carry out or supervise the execution of several studies which will help the Government define and implement a strategy to improve the efficieipcyof the transport sector. To be included are:
(a) a study on th improvement of CFT operations (para. 3.21);
(b) a study of current and future supply and demand for surface transportation (para. 2.10); and
(c) jeview of the level and implications of taxation on road users (para. 2.32).
The outline terms of reference of the unit have been agreed upon, and the Governmevnt has asked the Association to review and discuss the work of the unit from time to time. - 30 -
3.20 The Government has also agreed to set up the unit not later than March 31, 1978, and to put an experienced Togolese economist acceptable to the Association in charge. In addition, the unit will be staffed with two Togo- lese engineers and another Togolese economist. To assist the unit during its early stages of development, the project provides for 72 man-months of consult- ing services. A team of expatriates will comprise an economist and mission leader for about 3 years (or 33 man-months) on permanent assignment, and several experts specialized in the various transport fields who will be hired on temporary assignment (for a total of 39 man-months) to provide their expertise as needed by the unit.
Study of CFT Operations
3.21 The CFT is experiencing losses on its operations, and the Govern- ment, anxious to overcome the deficit (paras. 1.21 and 1.23), will commission Consultants financed under the project to study adequate measures to improve CFT's finances. The consultants will analyze: (a) staff productivity and potential reduction in operating costs; (b) tariffs; (c) personnel training needs at all levels; (d) the need to introduce commercial and performance accounting systems; (e) deletion of non-productive investments; and (f) in- creased diversification (such as in road passenger transport). The Government and the Association will agree on the terms of reference of the study and on the choice of consulting firms, and together will review the Consultants' draft report. The study is estimated to take some 8 man-months to complete, and the final report will be submitted not later than December 31, 1978. The Government will implement the recommendations of the study as soon as they become available.
Study for Organizing Feeder Road Construction and Maintenance
3.22 The Association is preparing a possible feeder road project (para. 2.13). To speed up the preparation of this project, the proposed highway project provides for about five man-months of consulting services to assist the Government and the Association in (a) defining the most appropriate organizational framework to construct and maintain feeder roads; (b) identi- fying the roads to be improved; (c) reviewing the existing equipment and work shop facilities; and (d) defining staffing, equipment and workshop needs. The consultants will also help prepare bidding documents for equipment purchases, which will allow an earlier implementation of the feeder road project.
Preinvestment Studies of the Bassar-Mango Road
3.23 Preinvestment studies of the Bassar-Mango road (137 km) will, in a first stage, identify the alternative routes for the existing track and their economic feasibility. The Government and the Bank will review the first stage studies to decide together the detailed engineering studies to be undertaken in the second stage. Terms of reference for the preinvestment studies have been agreed upon.
3.24 The isolated area to be served by the road has good agricultural potential, since it has sufficient rainfall and 80% of the land is suitable - 31 - for cultivation. The area is currently under-populated since only 20% of the usable land is under cultivation. If accessible, the area could receive some of the inhabitants of the neighboring over-populated Lama-Kara region. A proposed Cotton Development Project, which aims at improving the income of about 40% of the inhabitants in the area, will also benefit from this road.
3.25 The first section of the Bassar-Mango road (Bassar-Kabou, 22 km) is a reasonably well maintained all-weather earth road. The second section (Kabou-Guerin Kouka, 37 km) is hardly passable during the rainy season. From Guerin-Kouka on, the road becomes a track which stops after 18 km at the Kara River, where the ford has been washed out by floods. There is a gap of 48 km between the Kara and Koumongou rivers. The last 12-km section between the Koumongou River and Mango is a very poor track~
3.26 In the near future, Bassar will be 1:iked to Sokode, along the main Lome-Upper Volta road axis, by a paved road to be constructed und', African Development Bank financing. Improvement of the Bassar-Mango od would permit access to partially or totally isolated areas, opening them up to planned agricultural development. In the long run, Sokode-Mango via Bassar will become a 35 km shorter and easier alternative to the existing paved Sokode-Mango-Upper Volta border road via Lama Kara, which winds through a mountainous area considerably increasing transportation costs; the proposed alternate road will go through a less mountainous region.
B. Project Cost and Financinig
3.27 The total capital cost of the project, net of taxes and duties, is estimated at US$12.9 million equivalent, with foreign costs of about US$11.0 million (85%); taxes and duties total about US$2.4 million equivalent, and other local costs about US$1.9 million equivalent. Total cost including taxes and duties would amount to US$15.3 million. Estimates reflect prices as of January 1977. Project costs are summarized on page 32. Chapter III, Table I gives details of the project cost and Chapter III, Table 2, gives further details of the technical assistance cost.
3.28 The foreign cost component of civil works following the worldw-lde inflation since 1973 has changed only slightly from 65% to 66%, which means that the increases in local and foreign prices are about the same. The foreign component of equipment procurement is estimated at 90% of total cost, which also includes local preparation and delivery. Equipment will be pro- cured free of duties and taxes. The foreign component of consultants' services is estimated at 80% for construction supervision and road preinvestment studies, and 90% for other studies and technical assistance. No taxes are levied on consultants' services in Togo. The fellowships are entirely a foreign cost. - 32 -
------CFAF Million------US$ Million------Local Local Excl. Excl. Foreign as Taxes Taxes Foreign Total Taxes Taxes Foreign Total % of Total
A. Aneho-Tabligbo 159 257 851 1,267 0.65 1.05 3.48 5.18 67 Construction 140 257 773 1,170 0.57 1.05 3.16 4.78 66 Supervision 1/ 19 - 78 97 0.08 - 0.32 0.40 80
B. Agou-Notse 116 183 609 908 0.47 0.75 2.48 3.70 67 Construction 100 183 547 830 0.41 0.75 2.23 3.39 66 Supervision 1/ 16 - 62 78 0.06 - 0.25 0.31 80
C. Equipment Purchase 22 - 199 221 0.09 - 0.81 0.90 90
D. Technical Assistance 2/ 28 - 267 295 0.11 - 1.09 1.20 90 and Fellowships Maintenance Program 12 - 107 119 0.05 - 0.43 0.48 90 Road Planning and Design Unit 3 - 31 34 0.01 - 0.13 0.14 90 Transport Plan- ning and Coor- dination Unit 13 - 119 132 0.05 - 0.49 0.54 90 Fellowships - - 10 10 - - 0.04 0.04 100
E. Studies 36 - 157 183 0.16 - 0.69 0.85 80 Railway 2 - 15 17 0.01 - 0.06 0.07 90 Feeder Roads I - 10 11 0.00 - 0.04 0.04 90 Bassar-Mango 33 - 132 165 0.15 - 0.59 0.74 80
Sub-total excl. Contingencies (Base Cost) 361 440 2,083 2,884 1.48 1.80 8.55 11.83 71
F. Physical Con- tingencies 3/ 27 50 150 227 0.11 0.20 0.61 0.92 66
G. Price Contin- gencies 3/ 77 98 441 616 0.32 0.40 1.82 2.54 70
Subtotal Con- tingencies 104 148 591 843 0.43 0.60 2.43 3.46 69
TOTAL PROJECT COST 465 588 2,674 3,727 1.91 2.40 10.98 15.29 72 (Rounded) (1.9) (2.4) (11.0) (15.3)
1/ Including services of PW-D road laboratory. 2/ For details see Chapter III, Table 2. 3/ For details see Chapter III, Table 1. - 33 -
3.29 Reconstructioncost of the Aneho-Tabligboroad has been estimated on the basis of unit prices and quantities from the substantiallycompleted detailed engineering,and 10% for physical contingencieshas been added. The reconstructioncost per km (includingcontingencies) amounts to US$91,000 net of taxes and supervisionat January 1977 prices. Constructioncosts for the Agou-Notse road are based on the lowest evaluated bid received in November 1974, when the road constructionhad to be postponed.Due to the generally poor quality of soils found in the area, physical contingenciesof 15% of the total amount of works have been added. The constructioncost per km (includ- ing contingencies)amounts to US$57,000 net of taxes and supervision at January 1977 prices. Costs for the road maintenance and workshop equipment are based on consultants'estimates using CIF prices of January 1976.
3.30 The cost of constructionsupervision has been estimatedin detail and amounts to about 8% of constructioncosts. The cost of technical assis- tance is based on man-month unit prices (Chapter III, Table 2). Those unit prices have been estimated on the basis of similar services in Togo. The billing rate for consulting services is estimated at US$4,100-6,500per field man-month, according to the man's qualifications,and comprises salaries and overhead (home office expenses, expatriate allowances,social security, proposal preparationand other indirect expenses). Reimbursableexpenses payable to consultantsare estimated at US$1,400-1,700per field man-month including housing, internal and external travel, and telecommunications. Fellowshipsare estimatedat US$5,000 a year, includingtravel. The cost of road preinvestmentstudies is estimated at CFAF 1.2 million (US$4,800)per km, on the basis of recent similar studies carried out in Togo and comparable countries.
3.31 Updating of 1974 and 1975 prices to January 1977 prices and calcu- lating price contingenciesafter January 1977 have been done in the following way:
(a) local price variation indices, including local and foreign parameters,have been used to update prices until beginning January 1976, the latest time at which these indiceswere available;and
(b) price increasesestimated in accordancewith expected internationalprice trends have been used to calculate price variation for 1976 and price contingenciesfor 1977-1980.
The increasesexpected are shown below: - 34 -
… ------…Annual Price Increase------Civil Works and Equipment Consultants' Services
1976 9% 13%
1977-79 8% 12%
1980 7% 10%
Local and foreign price increases are assumed to be the same.
3.32 The foreign exchange component of the project is estimated at US$11.0 million equivalent. IDA's contribution cannot exceed US$10.0 million; therefore the Government has agreed to meet US$1.0 million of foreign costs, as well as all local costs and any potential project cost overrun. The finan- cial plan is as follows in millions of US$ net of taxes:
Local Foreign Total %
IDA - 10.0 10.0 78 Government 1.9 1.0 2.9 22
TOTAL 1.9 11.0 12.9 100
C. Implementation
3.33 Implementation of the project elements will be the responsibility of the MEPS through its PWD except for the transport planning and coordination unit, the study for the improvement of CFT operations, and the study for organizing the construction and maintenance of feeder roads, which will be the responsibility of the MCT.
3.34 The expected implementation schedule for the major activities of each project element is shown on the bar chart below. The project will take nearly four years to complete, from April 1977 (expected date of Credit Agreement signature) to December 1980. Both road construction works should start at the end of 1977 and last approximately 18 months. Road maintenance and workshop equipment should be delivered by the beginning of 1978. Techni- cal assistance for the maintenance program under the Second Highway Project, which will end in April 1977, would be extended for another two years from October 1977 to September 1979, but the mission leader will remain in the field after the end of the Second Highway Project to provide continuity of services. Technical assistance for the road planning and design unit would be provided for two years as soon as the new PWD premises are completed in early - 35 -
1978. Technical assistance for the transport planning and coordination unit would be provided for three years between January 1978 and December 1980. The study of CFT operations would be carried out from January to September 1978, and the feeder road study between May 1977 and March 1978. Road preinvestment studies would be carried out from October 1977 to July 1979, with a review of feasibility studies by the Government and the Bank in mid-1978.
TOGO THIRD HIOHWAY PROJECT PROJECT IMPLEMENTATION SCHEDULE ICALENDAR YEARS)
1975 1977 1978 1979 1980 ITEMfi ACTIVITY ACTIONSY…_…_… …_… _ _… _…__…_… 3,d 4th i.J 200I 3,d 4th 1st 2nd 3,0 41h Ist 2nd 31d 4th ist 2nd 3,d 4th
Credit Signing Govt./Bank Effectiveness Govt/Bank … Preparation of Bidding Documents Consultants Preparation of Prequalification Contractors ConstructionoF Evaluation of Prequalification Govt./Bank
Anehro-Tab Ig bo Preparation of Bids Contractors AnRho-Tabliboa Selection of Contractor Road Govt/Consultants/Bank Awardtot Contract Govt. Construction Contractor Construction Supervision Consultants Constructionof Construction Contractor |Agou-Notse 6Cnrco |Road uConstruction Supervision Consultants _ Preparation ot Bidding Documents Govt.
Equipment Preparation of Bids Suppliers Purchase Evaluationand Award Govt./Bank Supply of Equipment Suppliers
Mission Leader _ _ _
Road Maintenance Program Maintenance Inspector | - - _- Technical|Road Foreman
|Technical | t|Equipment Advisor Assistance' Road Planning and Design Unit Road Engineer
/Economist Transport Planning and f Mission Leader f - _ -_ _ Coordination Unit 1|Other Experts - _ 1 - - m - m - Preparation of TOR Govt/Bank Selection of Consultants Govt.IBank Study of Award of Contract Govt CFTOperations Executionof Study Consultants Review of Draft Report Govti.Bank Finalization of Report Consultants FeederRoad Study Executionof Study Govt.Consultants/Bank | - t Preparationof TOR and Short List Govt./Bank Preparation of Proposal Consultants Road Evaluation and Selection Govt./Bank
Preinvestment Award of Contract Govt. Studies Feasibility Study Consultants
Review Govt.lBank Detailed Engineering Consultants
Includes technical assistance experts' leave time.
WorldB.sk-16959 - 36 -
D. Procurement
3.35 The reconstructionof the Aneho-Tabligboroad would be carried out by contract awarded after internationalcompetitive bidding in accordance with the Bank's Guidelines for Procurement. Bidding documents would include an appropriateprice adjustment clause. Prospectivebidders would have to be prequalified.
3.36 Bids for constructionof the Agou-Notse road on an international competitivebasis had already been called in 1974 and opened in November of that year, when this item was deleted from the Second Highway Project. Recently, the rate of inflationhas been low in Togo, and from October 1974 (base of the bid) to December 1975 (last known indices) the contract price adjustment clause went up by only 0.1% for earth moving, 4.0% for pavement and 2.4% for structures. The Associationdoes not object to the Government awarding the contract to the bidder with the lowest evaluatedbid of 1974, provided that the contractor extends the validity of his bid. Otherwise, bids will be called again on an internationalcompetitive basis.
3.37 The Government intends to award constructionsupervision contracts to the consultingfirms which carried out the detailed engineeringof the road improvements: Gendron Lefebvre for the Aneho-Tabligboroad and DIWI for the Agou-Notse road respectively.
3.38 The road maintenanceequipment would be procured after interna- tional competitivebidding in accordance with the Bank's Guidelines for Procurement. Bidders would not be prequalifiedbut would compete on the basis of cost, delivery time and reliabilityof after-salesservice. Due considerationwould also be given in bid evaluation to matching the equip- ment to be purchasedwith existing equipment in order to simplify equipment maintenance. Workshop equipment, amounting to an aggregateof about US$50,000 including contingencies,would be procured after local advertisingand competi- tive bidding in accordancewith procurementprocedures of the Government ac- ceptable to the Association. Domesticallymanufactured goods would be allowed a preference of 15% or the level of applicable duty, whichever is less, when comparing domestic bids with those of foreign manufacturers.
3.39 The Government wants consultantsLouis Berger International,Inc. to continue providing technicalassistance for the maintenance program begun under the First and Second Highway Projects. The Governmentwould try to obtain an expatriate road engineer,who may be financed by bilateral aid (such as FAC), to organize the planning and design unit. The proposed project will provide funds for this position if the Governmentcannot find financing elsewhereby early 1978. Other technicalassistance and study items will be carried out by qualified and experiencedconsultants according to terms of reference satisfactoryto the Association. - 37 -
E. Disbursements
3.40 Disbursements would be made for 57% of the total cost (including taxes) of the road construction works, corresponding to 86% of the estimated foreign exchange cost. Disbursements for all other items of the project would be made for 100% of the estimated foreign exchange costs (or 60% of local expenditures for equipment locally procured). Based on these partici- pation rates and on the project implementation schedule, a projected disburse- ment schedule is shown below:
Projected Cumulative Disbursements at End of Quarter US$'000 Equivalent IDA
FY1978
December 31, 1977 100 March 31, 1978 600 June 30, 1978 2,100
FY1979
September 30, 1978 3,600 December 31, 1978 5,100 March 31, 1979 6,600 June 30, 979 8,100
FY1980
September 30, 1979 9,100 December 31, 1979 9,400 March 31, 1980 9,600 June 30, 1980 9,700
FY1981
September 30, 1980 9,800 December 31, 1980 9,900 March 31, 1981 10,000
3.41 Should funds remain in the Credit account after project completion, they would be used to reimburse the Government for part or all of its share in financing foreign costs of the project, and to procure additional road main- tenance equipment to be approved by the Association. - 38 -
CHAFTER III TABLE 1
TOGO
PROPOSEDTH'lD HIGHWAYPROJECT
Detailed Cost lstimates
------CFAF Million------US$' 000------Percente------Local Taxes Foreign Total Local Tages Foreign Total Local Taxes Foreign
A. Construction of the Aneho-Tabligbo Road 209.6 342.0 11224 1.674.0 856 1.39 4.581 6.833 13 20 67
Construction Works- 186.0 342.0 1.028.0 1.556.0 759 1,396 4.196 6.351 12 22 66
Construction 140.0 257.0 773.0 1,170.0 572 1,049 3,155 4,776 12 22 66 Physical contingencies (107.) 14.0 26.0 77.0 117.0 57 106 314 477 12 22 66 Price contingencies (217) 32.0 59.0 178.0 269.0 130 241 727 1,098 12 22 66
Construction SuPervision 23.6 0.0 94.4 118.0 97 0 385 482 20 0 80
Supervision 19.5 0.0 78.0 97.5 80 0 318 398 20 0 80 Price contingencies (217.) 4.1 0.0 16.4 20.5 17 0 67 84 20 0 80
B. Construction of the Aaou-Notse Road 152.9 246.3 811.6 1.210.8 624 1.006 3.313 4.943 13 20 67
Construction work-2/ 134.5 246.3 737.8 1.118.6 549 1.006 3.012 4.567 12 22 66
Construction 100.0 183.0 547.0 830.0 408 747 2,233 3,388 12 22 66 Physical contingencies (157) 13.0 24.0 73.0 110.0 53 98 298 449 12 22 66 Price contingencies (197) 21.5 39.3 117.8 178.6 88 161 481 730 12 22 66
Construction Supervision 18.4 0.0 73.8 92,2 75 0 301 376 20 0 80
Supervision 15.5 0.0 62.0 77.5 63 0 253 316 20 0 80 Price contingencies (197.) 2.9 0.0 11.8 14.7 12 0 48 60 20 0 80
C. Equipmnt 23.9 0.0 214.8 238.7 98 0 877 975 10 0 90
Road Maintenance Eqguipment 22.7 0.0 204.1 286.8 93 0 833 926 10 0 90
Equipment 21.0 0.0 189.0 210.0 86 0 771 857 10 0 90 Price contingencies (87.) 1.7 0.0 15.1 16.8 7 0 62 69 10 0 90
WorkshoP Equipment 1.2 O.,O 10.7 11.9 5 0 44 49 10 0 90
Eq.ipment 1.1 0.0 9.9 11.0 5 0 40 45 10 0 90 Price contingencies (87.) 0.1 0.0 0.8 0.9 0 0 4 4 10 0 90
0, Technical Assist;nce 36.2 0.0 325.4 361.6 148 0 1.329 1.477 10 0 90
Maintenance Progtrem 14.3 0.0 128.7 143.0 58 0 526 584 10 0 90
Technical assistance 11,9 0.0 107.1 119.0 48 0 435 483 10 0 90 Price contingencies (207) 2.4 0.0 21.6 24.0 10 0 91 101 10 0 90
Road Planning and Design Unit 4.3 0.0 38.7 43.0 18 0 158 176 10 0 90
Technical assistance 3.4 0.0 30.6 34.0 14 0 125 139 10 0 90 Price contingencies (26%) 0.9 0.0 8.1 9.0 4 0 33 37 10 0 90
Transport Planning and Coordination Unit 17.6 0.0 158.0 175.6 72 0 645 717 10 0 90
Technical assistance 13.2 0.0 119.1 132.3 54 0 486 540 10 0 90 Price contingencies (337) 4.4 0.0 38.9 43.3 18 0 159 177 10 0 90
E. Fellowhips 0.0 0.0 9.8 9.8 0 0 40 40 0 0 100
F. Railwvay Study 2.0 0.0 18.3 20.3 8 0 75 83 10 0 9o
Study 1.7 0.0 15,5 17.2 7 0 63 70 10 0 90 Price contingencies (197) 0.3 0.0 2.8 3.1 1 0 12 13 10 0 90
C. Feeder Road Study 1.2 0.0 11.0 12.2 5 0 45 50 10 0 90
Study 1.1 0.0 10.0 11.1 5 0 40 45 10 0 90 Price contingencies (107.) 0.1 0.0 1.0 1.1 0 0 5 5 10 0 90
H. Study of the Bassar-Mango Road 40.0 0.0 160.0 200.0 178 0 712 890 20 0 80
Study 33.0 0.0 132.0 165.0 147 0 587 734 20 0 80 Price contingencies (21.) 7.0 0.0 28.0 35.0 31 0 125 156 20 0 80
TOTAL 465.8 588.3 2,673.3 3.727.4 1.917 2,402 10,972 15.291 12 16 72 Base Cost 361.4 440.0 2,083.0 2,884.4 1,489 1,796 8,546 11,831 13 15 72 Physical Contingencies 27.0 50.0 150.0 227.0 110 204 612 926 12 22 66 Price Contingencies 77.4 98.3 440.3 616.0 318 402 1,814 2,534 12 16 72
1/ Con.truction cnsc per k at*cJanuary 1977 prices is US$91,000 net of taEes, including contingenciee. 2/ Construction cost per kmn at January 1977 prices is US$57,000 net of taxes, including conotige.cien.
Source: Mission estinaten
January 1977 - 39 -
CHAPTER III TABLE 2
TOGO
THIRD HIGHWAY PROJECT
Cost Estimates for Technical Assistance
CFAF Millions ---US$'000--- Number of Unit Total Unit Total -lonths Cost Cost Cost Cost
Maintenance Program
1. Mission Leader 22 2.00 44.00 8.16 179.59 2. Other Expatriates 55 1.35 75.00 5.51 )3.06
Subtotal 119.00 486.00
3. Price Contingencies (20%) 24.00 101.35
Total 143.00 584.00
Road Planning and Design Unit
1. Road Engineer/Economist 20 1.70 34.00 6.93 138.60 2. Price Contingencies (26%) 9.00 37.40
Total 43.0` 176.00
Transport Planning and Coordination Unit
1. Mission Leader 33 2.00 66.00 8.16 269.28 2. Other Expatriates 39 1.70 66.30 6.93 270.27
Subtotal 132.30 539.55
3. Price contingencies (33%) 43.30 177.45 175.60 717.00
Source: Mission estimates. - 40 -
IV. ECONOMIC ANALYSIS
A. General
4.01 The economy of Togo is predominantlyagricultural, which at its present level of developmentgenerates only modest levels of transportde- mand. In the economic field, the two major long range objectivesof the Governmentare to increase (a) the output of agricultureand (b) the pro- duction and processing of raw materials. The proposed project is designed to help achieve the first objectiveby providing better and cheaper road communicationthroughout the country through more efficient road maintenance operations,and in two specific areas by the reconstructionof one road and constructionof another. Reconstructionof the Aneho-Tabligboroad would reduce transportationcosts between the coast and the agriculturalarea around Tabligbo,which is also the site of a major industrial plant (CIMAO) soon to be built. Constructionof the Agou-Notse road would open up an al- most inaccessiblearea with good agriculturalpotential. The latter is par- ticularlyimportant for agriculturaldevelopment, because experiencewith the constructionof the Palime-Atakpameroad a few years ago demonstratedthat spontaneouspopulation migration occurs when a new road is constructed in an area with good agriculturalland in Togo. The project would also improve the Government'shighway maintenance and planning capacity and its overall transportcoordination.
4.02 The proposed road reconstructionand constructionare justified and expected to yield an economic return (ER) of about 22% and a benefit/ cost ratio of about 2 at 12% discount rate. The rate of return on the rural developmentpackage in the Agou-Notse area will be of the same magnitude. The other elements of the project (purchaseof highway maintenance and workshop equipment,technical assistance to PWD and MCT, and studies) were not included in the ER calculation since they are either marginal extensionsof an ongoing maintenanceprogram with a good rate of return (First Highway Project with a continuationunder the Second), or new elements to strengthenthe Government, increase the efficiencyof the railways and prepare future projects.
B. Reconstructionof the Aneho-Tabligboroad (45 km)
(a) Background
4.03 The Aneh-Tabligo road crosses a densely populated region (300 inhabitantsper km ) important for the production of palm-oil,manioc, cassava, yam, maize, vegetables and fruit. Additional income is derived from breeding small animals (sheep,goats, pigs). The Association,under the MlaritimeRegion Rural Development Project, and other aid agencies are helping the Government to develop the region's agriculturalproduction for both export and for local consumption.The region has one of the highest rates of immigration in Togo. Two-thirdsof the country's oil palm planta- tions and the only palm oil processing plant are in this region. The CIMAO - 41 -
Regional Clinker Project will soon help the region to diversify its economy. The plant site is along the Aneho-Tabligboroad, about 2 km from Tabligbo; constructionwork is due to start in October 1977.
(b) Traffic
4.04 Traffic volumes on the Aneho-Tabligboroad were determined on the basis of informationcollected by the consulting firm Gendron Lefebvre and on traffic data regularly collectedby PWD. These counts showed that daily traf- fic in 1974 averaged 362 vehicles per day on the whole road, with 651 vehicles per day on the first section (Aneho-Anfouin,12.5 km), 340 vpd on the second (Anfouin-Amegnran,16.5 km) and 170 vpd on the third (Amegnran-Tabligbo, 15.7 km) (para. 4.05). In addition the road carries some slow-movingagri- cultural equipment and a significantamount of bicycle and pedestrian traffic particularlyon market days. Truck traffic accounts for almost 40% of all traffic on the road. Details of the traffic compositionby category of vehicle and by road sections in 1974 are shown below:
Road Sections
Aneho-Anfouin Anfouin-Amegnran Amegnran-Tabligbo 12.5 km 16.5 km 15.7 km v.p.d. % v.p.d. % v.p.d. %
Passenger car 430 66 214 63 97 57
Light trucks (less than 5t) 163 25 68 20 51 30
Medium trucks (5 to 20 t) 46 7 51 15 20 12
Heavy trucks (20 t and more) 12 2 7 2 2 1
TOTAL 651 100 340 100 170 100
4.05 Loads consist mainly of oil palm nuts, fruit, maize and other food products for consumptionin Aneho and Lome or for export via Lome. The fuel and constructionmaterial traffic is also expected to grow rapidly because of the planned constructionwork in the region, particularlythe CIMAO regional clinker plant. A traffic growth rate of 5% has thereforebeen assumed between 1974 and 1978. For traffic growth rates during the 20 year period followingreconstruction of the road (1979-1998),a best estimate and a low estimate have been employed, as shown below:
Year Average traffic growth rates p.a. best estimate low estimate
First period: 1979-1988 10% 6%
Second period: 1989-1998 5% 5% - 42 -
4.06 The best traffic estimate foresees a traffic growth rate of 10% p.a. during the first ten-year period. This is slightly higher than the estimated traffic growth rate of 8-10% in the whole country for the 1976-1980period (para. 2.05). Indeed, the region will be in the forefront of economic ac- tivity, and the road links the major city of that region with the national capital and the port facilities. During the second ten-year period, traffic growth is forecast at 5% p.a. Even the low traffic estimate leads to 1,000 vpd on the first section by 1983, 500 vpd on the second by 1982 and 500 vpd on the third by 1994. Traffic on the third section may still be underestimated under both estimates beyond 1982, because it is not possible to quantify now the commuting traffic which will be generated by the CIMAO plant. This will depend upon where the workers live, which has not yet been determined.
(c) Constructionand maintenancecosts
4.07 The cost estimates,exclusive of taxes, which were used in the eco- nomic evaluationare shown below in millions of CFAF at October 1975 prices. They were the basis from which the January 1977 costs of page 32 have been projected.
Item Cost
Construction(including phys. cont.) 874
Supervisionof construction 78
Total Construction 952
Physical completion of the road is foreseen as follows: 25 km in 1978 and 20 km in 1979. Investment expendituresare therefore expected to be 60% in 1978 and the remaining40% in 1979. Maintenance costs have been assumed the same with and without reconstruction. This is a simplifyingand conservative assumption,because it underestimatesthe costs of maintenancewithout the project, as increasing expenditureswould be required to maintain the road at its current state without major investment.
(d) Transport costs
4.08 Transport costs are based on operating typical vehicles with esti- mated average loads as indicated below (see also para. 4.04). In this case they are:
Passenger car (Peugeot 404 station wagon, 9 passengers)
Light truck (ToyotaHILUX 1600, average load 1.2 ton)
Medium truck (Ford K 700, average load 6.0 ton)
Heavy truck (Berliet GR 900, average load 7.5 ton) - 43 -
The operating costs of these vehicles on a paved road in poor condition (the existing Aneho-Tabligboroad) and on a paved road in good condition (as the road will be after reconstruction)are shown below net of taxes in CFAF per km at October 1975 prices:
Category Paved road of Condition Vehicle Poor Good Saving
Passengercar 43.8 27.4 16.4 or 37%
Light truck 41.8 23.8 18.0 or 43%
Medium truck 97.8 50.7 47.1 or 48%
Heavy truck 137.8 71.1 66.7 or 48%
These vehicle operating cost figures indicate savings after reconstruction averaging 40% for passenger cars and light trucks and 48% for medium and heavy trucks.
(e) Benefits
4.09 Benefits from road constructionwere quantified as savings in vehicle operating costs from improved road conditions,that is, average daily traffic by section times 365 days, times vehicle operating cost sav- ings per km, times number of km per section. Other benefits, such as time savings to drivers and vehicle occupants, increase in riding comfort, and reduction of accidents, were not included. The savings are shown below in millions of CFAF for the estimated 20-year lifetime of the road under the traffic growth estimates discussedabove. In spite of the road's partial completion in 1978, no benefits have been counted in that year, but in return full benefits have been counted in 1979, when the last 20 km are expected to be completed. - 44 -
Benefits in millions of CFAF
Year Best traffic estimate Low traffic estimate
1 = 1979 169 132 2 = 1980 185 142 3 = 1981 204 149 4 = 1982 224 157 5 = 1983 247 167 6 = 1984 272 177 7 = 1985 299 188 8 = 1986 329 199 9 = 1987 361 211 10 = 1988 398 223 11 = 1989 417 235 12 = 1990 438 246 13 = 1991 460 258 14 = 1992 483 271 15 = 1993 507 285 16 = 1994 533 299 17 = 1995 559 314 18 = 1996 587 330 19 = 1997 617 346 20 = 1998 648 364
(f) Economic Return
4.10 Based on a construction period of 18 months and an economic life of 20 years, economic appraisal of the above mentioned costs and benefits shows that reconstruction of the Aneho-Tabligbo road is justified. The overall economic return on its reconstruction is estimated at 26% under the best traffic growth rate estimate. A separate analysis has also been carried out for each section of the road. On the two first sections, the ER is above or in line with the overall return. On the third section, Amegnran - Tabligbo, where traffic is lower, the ER is 13%. As explained in para 4.06, however, the traffic assumptions for Amegnram - Tabligbo are very conservative, since the additional traffic generated by the CIMAO plant has not been quantified. The overall ER is still about 18% under the low traffic estimate. The overall benefit/cost ratios at 10% and 12% interest rates are 2.9 and 2.4 under the best traffic estimate and 1.8 and 1.5 under the low traffic estimate.
(g) Sensitivity
4.11 To determine the sensitivity of the ER to variations in the estimated costs and benefits (apart from the sensitivity to traffic changes as analyzed in the best and low traffic estimates), an analysis was carried out, assuming overall increases in costs and benefits separately and simultaneously. The results of this analysis, which are summarized below, indicate that, under the best traffic estimate, with costs increasing or benefits decreasing by as much - 45 - as 165% and 65% respectively or with a simultaneous increase in costs and decrease in benefits of 45% the ER would still remain about 11%. Even the low traffic estimate can retain an ER of 11% with a cost increase of 65%, a benefit decrease of 40% or a simultaneous change of 25%.
Economic Return Assumptions Best traffic estimate Low traffic estimate
Basic assumptions 26 18
Costs + 65% 17 11
Costs + 165% 11
Benefits - 40% 17 11
Benefits - 65% 11
Costs + 25%, Benefits - 25% 19 11
Costs + 45%, Benefits - 45% 11
(h) Major Beneficiaries
4.12 It is expected that, in the first round of distribution, the major beneficiaries of traffic cost reductions would be the local truck owners and operators, but that the cost reductions will later be passed on to the farmers of the region and their families (about 200,000 people in total) in the form of higher farm gate prices due to lower transport costs or slower increases in transport costs because of the competitive situation in the road transport industry. Farm gate prices are basically set by the Government in cooperation with OPAT, which is also responsible for collecting and exporting agricultural products.
C. Construction of the Agou-Notse Road (51 km)
4.13 A two-lane gravel road between Agou and Notse was originally approved by the Board of Directors as part of the Second Highway Project in Togo, but cost escalation in other components of that project forced deferral of the Agou-Notse road. This road would serve two functions. First, it would provide a reliable all-weather connnection between the Klouto area near Agou, which faces regular food shortages, and Notse, an important market located in a food surplus area; currently, the only possible routes via Atakpame or Tsevie are more than three times longer. Second, and most important, it would open a new area for agricultural production, as there are now only two sections of barely passable track, about 30 km long in total, at each end of the chosen alignment but with the 20 km long middle portion practically missing (para. 3.09). - 46 -
The preinvestment studies were first carried out by consultants between 1970 and 1972 on the basis of vehicle operating cost savings on traffic on the two existing road sections and the increase in value added to be produced in the zone of influence of the road. Subsequently,,additional studies carried out by consultants in 1976 indicate that the project is likely to have a higher return than was originally appraised. Conservative assumptions on vehicle operating cost saving and on the expected increase in net economic benefits from new agricultural production attributable to the road would be sufficient to yield a rate of return of 18%. Sensitivity tests indicate that the project would be justified even with substantial variations in costs and benefits. As there are clear indications that enough complementary develop- ment is firmly planned in the road zone and spontaneous in-migration will take place (para. 4.01), it was considered that the costs of further studies to develop a more elaborate economic justification of the whole rural development package would not be justifiable.
4.14 The major beneficiaries of the new road will be the 15,000 people who live at present in the project area and an estimated additional 30,000 who could settle in the project area and become communal landowners there through clearing and developing the land. These new settlers are expected to come mainly from the Cabrais regions in the north, where pressure on the land and prolonged drought have made life very hard.
D¶ Other Project Elements
4.15 Procurement of road maintenance and workshop equipment and of technical assistance for road maintenance under the proposed project should allow PWD to carry out all routine maintenance of paved roads and periodic and routine maintenance of unpaved roads of the primary and secondary net- work more efficiently. Properly planned maintenance operations usually have a high ER, and the addition to overall efficiency due to the purchase of new trucks and the transfer of inadequate ones to lighter duty, the purchase of additional workshop equipment and the continuation of some necessary technical assistance is expected to be great.
4.16 The project al- 4provides some technical assistance for the train- ing of the personnel of the road planning and design unit and for the transport planning and coordination unit, and for a study of the railway operations, a study of the organization of feeder road construction and maintenance, and a pre-investment study for a major road in the north (Bassar-Mango). The former is an important institution-building element of the project, and the latter will most probably lead to improved railway operations, a much needed feeder road project and an economically well justified investment in an area now basically undeveloped because of its physical isolation. - 47 -
E. Risks
4.17 There are no unusual risks involved in this project. The Aneho- Tabligbo road reconstructionimproves an already existing axis with large traffic volumes and, therefore,presents the lesser risk of the two roads. Part of the benefits expected from the constructionof the Agou-Notse road are closely linked to immigrationinto the zone influencedby the road, but even the risk of this not occuring is minimal because when the Palime-Atakpame road was completed, Cabrais people from the north resettled in the region with minimal support from Government agencies. That occurred in the late 1960's and early 1970's, and since then the Sahel drought ravaged the northern regions increasing the incentivefor these people to move to the south. The only ele- ments which may not be a complete success under this project are the various technical assistancecomponents. In particular,it may take a while for the overall transportplanning and coordinationunit to gain the experience and the political influence necessary to have an important effect on policy- making.
V. AGREEMENTSREACHED AND RECOMMENDATION
5.01 The following items were discussed and agreed with the Government, and specified as special conditions in the Credit Agreement:
(i) strengthening RD's planning/design unit which will operate under terms of reference agreed upon by the Association (para. 3.16);
(ii) setting up in MCT a transport planning and coordination unit which will operate under terms of reference agreed upon by the Association (para. 3.19);
(iii) providing adequate managerial and operational staff to run RD's maintenance and planning/design units and MCT's transport planning and coordination unit not later than October 1, 1977, May 1, 1978 and March 31, 1978 respec- tively (para. 3.15, 3.16 and 3.20);
(iv) enforcing axle load limitations (para. 2.08); and
(v) implementing a program approved by the Association for the improvement of railway operations not later than December 31, 1979 (para. 1.23). - 48 -
5.02 Written assuranceswere also given by the Government that it will:
(i) seek to balance expendituresfor road construction and maintenancebetween the primary and secondary networks and the feeder road networks (paras. 1.24 and 2.13); and
(ii) promote fair competitionbetween road transportersand study measures to avoid over-capacityin road transportequipment (para. 2.10).
5.03 During negotiations,agreement was reached with the Government on:
(i) the alignment of the first 4.4 km of the Aneho-Tabligbo road (para 3.07);
(ii) terms of reference for: (a) the technical assistance for highway maintenance (para. 3.15); (b) the road plan- ning and design unit (para. 3.16); (c) the transport planning and coordinationunit (para. 3.19); and (d) the Bassar-Mangopreinvestment studies (para. 3.23);
(iii) the cost estimates for the project (paras. 3.27 and 3.28);
(iv) its financing (para. 3.32); and
(v) the implementationschedule for each project element (para. 3.34) and the disbursementschedule (para. 3.40).
5.04 The project is suitable for a Credit of US$10.0 million to the Government of Togo on standard IDA terms.
March 17, 1977 - 49 -
ATTACHMENT:
ECONOMIC RE-EVALUATION
OF THE CONSTRUCTIONITEMS KEPT IN
THE SECOND HIGHWAY PROJECT (Credit450-TO)
AFTER COST INCREASES
A. General
1. The Second Highway Project (Credit 450-TO, US$8.7 million) was appraised in November/December1972, and approved by the Board on November 27, 1973. In addition to technicalassistance to the Governmentand preinvest- ments studies, it comprised three constructionitems:
(a) rehabilitationof the paved road Blitta-Sokode(78 km);
(b) improvementof the Sokode-Tchamba-Kamboleroad (75 km) to gravel standards;and
(c) constructionof the Agou-Nuatja (now Notse) road (51 km) to gravel standards.
The project suffered considerablyunder the 1973-1974world-wide inflation, and bids received in November 1974 showed on average a 60% increase over appraisalestimates. Consequentlythe Government decided to delete construc- tion of the Agou-Notse road and improvementof the Tchamba-Kambolesection (except for six small bridges) from the project. Rehabilitationof the Blitta- Sokode road started in March 1975, and will be completed in May 1977, with a five month delay due to the necessity to stabilizewith cement the new base- course of the road because of an unexpectedlysteep rise in the traffic. Im- provementof the Sokode-Tchambasection and of the six bridges on the Tchamba Kambole section started in October 1975 and was completed in November 1976. PWD will soon start gravelling the Tchamba-Kambolesection by force account under its own budget.
B. Economic Justification
2. The economic justificationof the two roads at appraisalwas based on the expected reduction in vehicle operating costs. Other benefits, including induced agriculturaldevelopment, increased transportreliability, time savings and reduction in accident costs were described qualitativelybut not quantified in the estimation of economic returns. The same methodologyis used in the revaluationand leads to the conclusion that with expected returns of 29% and 14% the road investmentswere justified even with the substantially increased costs (paras. 8 and 9). - 50 -
C. ConstructionCosts Estimates
3. Original cost estimates at 1973 prices and actual construction costs at October 1975 prices (both net of taxes) are as follows:
------CFAF million------
Appraisal estimates Actual costs (1973 prices) (October 1975 prices)
Blitta - Sokode Construction 947 1,692 Constructionsupervision 78 142 Total 1,025 1,834
Sokode-Tchamba Construction 204 389 Constructionsupervision 16 59 Total 220 448
The actual constructioncosts for the Sokode-Tchambasection are the total costs of the contractor'scontract for the Sokode-Tchamba-Kamboleroad minus the constructioncosts for the six bridges on the Tchambe-Kambolesection. Actual constructioncosts are higher than estimatedat appraisal, by 79% on Blitta-Sokodeand 104% on Sokode-Tchamba.
D. Vehicle Operating and MaintenanceCosts
4. The vehicle operating costs used in the reevaluationare derived from those used in the appraisal of the proposed Third Highway Project (para. 4.08) but include costs for heavier vehicles which do not often travel on the roads of the Third Highway Project. They are given below in CFAF per kilometer, net of taxes, at October 1975 prices:
Paved road Unpaved road Condition Condition Good Poor Good gravel Poor earth road road Passenger cars and light trucks 27.4 43.8 34.0 59.4 Medium trucks 50.7 97.8 62.3 137.5 Heavy trucks 71.1 137.8 88.9 193.5 Truck-trailers 88.9 172.2 111.1 242.0 - 51 -
The increase in operating costs for passenger cars is 94% between appraisal time and October 1975. It is difficult to make that comparison for other vehicles because the vehicle types used in the Second and Third projects differ somewhat.
5. For the Blitta-Sokoderoad, maintenance costs have been assumed the same with or without rehabilitation,since it is doubtful that PWD could extend maintenance operations if the road surface is deterioratingrapidly. For the Sokode-Tchambaroad, maintenance expendituresare estimated at CFAF 11 million per year on the gravel road, including routine and periodic mainte- nance. Practicallyno maintenance was carried out on the former earth road. No maintenance costs were given in the appraisal report.
E. Traffic Forecasts
The Blitta-SokodeRoad
6. Traffic has been growing fast on the Blitta-SokodeRoad, from 175 vehicles per day in 1972 as reported in the appraisal report to 320 in 1975 and 430 in 1976. This results mainly from the general growth of Togo's economy but also somewhat from the efforts made by the Governmentto attract import and export traffic to and from some Sahelian countries (Mali, Upper Volta and Niger) through the port of Lome. The breakdown of the average daily traffic for 1975 and 1976 is as follows:
Number of Vehicles
1975 1976
Passenger cars and light trucks 256 302 Medium trucks 53 113 Heavy trucks 12 2 Truck-trailers 1 14
Average daily traffic 322 431
For the future, a traffic growth of 8% p.a. has been assumed for the next 10 years, and of 5% for the remaining 10 years of the expected 20-year life of the road.
The Sokode-TchambaRoad
7. The average daily traffic given in the appraisal report is 105-110 vehicles in 1972. Traffic data collected by PWD for the 1972-1976period are somewhat erratic, but they indicate a growth from some 70 vpd in 1972 to some 100 vpd in 1976. There are indicationsthat the 1972 traffic data collected by consultantsand included in the appraisal report may have been overesti- mated. The breakdown of 1976 average daily traffic is as follows: - 52 -
Number of vehicles
Passenger cars and light trucks 74 Medium trucks 29 Heavy trucks 1 Truck-trailers I
Average daily traffic 105
For the future, a traffic growth of 8% p.a. has been assumed for the next 10 years, and of 5% for the remaining 6 years of the expected 16-year life of the road.
F. Conclusion
8. The appraisal report expected returns of 22% for the Blitta Sokode road and 16% for the Sokode-Tchambaroad. The economic returns at project completion are re-evaluatedat 29% for the Blitta Sokode road and 14% for the Sokode-Tchambaroad. This shows that the road investmentswere justified even after substantialcost increasesbefore and during implementation.
9. Constructioncosts and vehicle operating costs have both approxi- mately doubled between appraisal and completionof the project. For the Blitta-Sokoderoad, the higher ER found in the re-evaluationis due to an unexpected traffic increase of about 150% between 1972 and 1976. For the Sokode-Tchambaroad, the estimated ER at appraisal is slightly higher than the re-evaluatedER, mainly because constructioncosts increased about 10% more than vehicle operating costs. - 53 -
ANNEX:
Documents Available in Project File
A. General Reports and Studies on the Sector and Sub-sector
A.1 - Planning A.1.1 Plan de DeveloppementEconomique et Social, 1971-1975, Ministere des Finances, de l'Economieet du Plan. A.1.2 Plan de DeveloppementEconomique et Social 1976-1980- Projet; and Troisieme Plan Quinquennal de Developpement Economiqueet Social 1976-1980 (en chiffres),Ministere du Plan. A.2 - Transport A.2.1 Etude des Transports au Togo, IFO Institut - SEDES, 1963. A.2.2 Etude Complementairedes Transports au Togo, IFO Institut - SEDES, 1967. A.2.3 Etude des Transports ParallelesRail/Route au Togo, Deutsche Eisenbahn Consulting,Avril 1973. A.2.4 Preetude economique de la liaison Lome-Ouagadougou,SEDES, Mars 1969.
A.3 - Organizationof the Road Sector
A.3.1. Decret no 69.130 portant creation d'un Service des Transports Routiers, 23 Juin 1969. A.3.2 Arrete no 013/MTP/STRportant organisationdu Service des TransportsRoutiers, 23 Avril 1974. A.3.3 Arrete Interministerielno 74.9/MCI/MTPfixant les tarifs de transport, 19 Avril 1974. A.3.4. Arrete no 024/MTP/STRportant creation d'un Comite Permanent des TransportsRoutiers, 13 Juin 1974. A.3.5 Constitutionde la Societe Nationale des TransportsRoutiers TOGO-ROUTE, 25 Mars 1976. A.3.6. Ordonnanceno 53 portant creation, organisationet administra- tion de la Societe Nationale d'Investissement(SNI), 29 Decembre 1971.
A.4 - Agriculture
A.4.1 Region Maritime, Projet de DevelopmentAgricole, Etude de Factibilite,PNUD, 1974. A.4.2 Complexe Agro-Industrield'Ananas et de Tomates, Coral Gables - Lang EngineeringCorp., Avril 1975. - 54 -
B. General Reports and Studies Relating to the Project
B.1 - Road Construction
B.l.l. Route Agou-Notse, Dr. Ing. Walter, KG. Etude economique complementaire, Septembre 1972. Dossier d'appel d'offres, Juin 1974. Etude economique supplementaire (draft), Mars 1976. Etude economique complementaire - Rapport Final - Mai 1976.
B.1.2 Route Aneho-Tabligbo, Gendron Lefebvre Inc. Proposition d'etude, Novembre 1973. Etude de factibilite, Janvier 1975. Addendum au rapport economique, Octobre 1975. Addendum au rapport economique, Octobre 1975, revu en Decembre 1975. Dossier d'Appel d'offres (draft), Decembre 1975. B.1.3 Deux mille kilometres de routes au Togo, Etude Technico- Economique, BCEOM, 1975. B.1.4 Possibilite d'emploi des methodes a fort coefficient de main d'oeuvre, PNUD-OIT, 1975.
B.2 - Road Maintenance
B.2.1 Programme d'Entretien Routier, Phase I, Rapport Final, Louis Berger, Mars 1974. B.2.2 Programme d'Entretien Routier, Phase II, Rapports trimestriels no I a 4, 6 a 9 et 11, Louis Berger, ler Janvier 1974 - 31 Mars 1976. B.2.3 Programme d'Entretien Routier, Phase II, Rapport Annuel 1974, Louis Berger. B.2.4 Programme d'Entretien Routier, Notes Techniques, Louis Berger. Formation du personnel. Comptabilite analytique. Comptabilite des ateliers. Comptabilite matiere. Comptabilite des carburants et ingredients. Approvisionnement en pieces detachees. Maintenance des materiels. Comptages de trafic, enquetes et leur exploitation. Programme de rechargement periodique. Controle des activites de maintenance. Documentation technique. Documentation de controle. B.2.5 Calendrier des cours du CERFER, annee 1975-1976. B.2.6 Projet de Budget General, Annee 1976, Entretien des routes, ports et aerodromes.
C. Selected Working Papers
C.1 - Cartographie du Togo, Afrique Promotion, Janvier 1974. l $ Lito-
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