AFRICAN DEVELOPMENT BANK GROUP

CAMEROON

MBALMAYO- ROAD PROJECT

Project Performance Evaluation Report (PPER)

OPERATIONS EVALUATION DEPARTMENT (OPEV)

9 October 1997 1 E#ivalents and Abbreviations Preface Project Basic Data (i-iii) Evaluation Summary (iv-viii)

PROJECT PERFORMANCE AUDIT MEMORANDUM

1 OVERVIEW 1.1 Geographic and Economic Setting 1.2 The Transport Sector 1.3 The Project: Background, Objectives and Description

2. PROJECT IMPLEMENTATION 2.1 Effectiveness 2.2 Procurement of Goods and Services 2.3 Project Modifications 2.4 Implementation Schedule 2.5 Project Costs and Financing 2.6 Disbursements

3. PROJECT ACHIEVEMENTS 7

4. PERFORMANCE EVALUATION 8 4.1 Operational Performance 8 4.2 Economic Performance 9 4.3 Impacts on the Environment 11 4.4 Performances of the Parties 13

5. SUSTAINABILITY AND DEVELOPMENT 15 5.1 Sustainability of the Impacts 15 -5.2 Project Development 16

6. CONCLUSIONS. LESSONS AND RECOMMENDATIONS 17 6.1 Conclusions 17 6.2 Lessons 19 6.3 Recommendations 19

Annexes Number of Pages

1 Map of the Priority Road Network and Project Location 1 2 Retrospective Project Matrix 2 3 Statements of Duration of Contract Awards 4 4 A&icultural, Animal, Fishery and Forest Productions of the Impact Area 3 5 Project Economic Reappraisal 6

______---- T&s report was prepared by Messrs. A.R. Rakotobe, Principal Evaluation Officer and R. Loko, koad hngineer Consultant, following their mission to Cameroun in March 1995. .:: . i i. 6 PREFACE

1. This Project Performance Audit.Report (PPAR) reviews the -Ebolowa Road Project in for which an ADB loan agreement for UA 47.15 million was signed in February 1987. The purpose of the project was to provide the Southern Province with basic modem road infrastructure, and promote development of various economic sectors especially agriculture and forestry. The other project objectives were: i) enable the development of transport at the best cost for the community; and ii) help further integration of sub-regional economies, the road being part of the international link with and a section of the Transafrican road.

2. The Borrower is the Government of Cameroon and the executing agency the Ministry of Public Works, then as of 1990, the Direction des Grands Travaux du Cameroun which had just been established. Works were implemented by the Firm Group COGEFAR CameroonRAZEL F&es and works were supervised by BCEOM Cameroon/LABOGENIE. Tbe project was completed in 1991.

3. Actual project achievements were: (i) construction of a 101 km long paved road with a duai carriage way, between Mbalmayo and Ebolowa; ii) construction of 20.1 km of road, 17.6 km of it paved, accessible to the projected site in Ebolowa for agro-pastoral shows, as well as a 2700 m* heliport; and iii) procurement of a roller bridge for the provincial road department workshop in Ebolowa as well as traffic counting and vehicle weighing material.

4. The PPAR comprises the project performance audit memorandum (PPAM) and the project completion report (PCR) which was written by the Infrastructure and Industry Department, . The PCR reviews project design and implementation and draws some appropriate lessons. While reviewing in detail specific aspects of design and hiipiementation, the PPAM lays more emphasis on concerns such as the effective use of resources, the extent to which objectives were reached, the operational performances of the project and the sustainability of effects.

5. The PPAM is based on the review of the PCR. the appraisal report, points from the Bank’s project file and information collected by the appraisal mission which visited Cameroon in March 1995. The draft PPAM was submitted for comments to the Borrower through the Ministry of Economy and Finance, and to the ADB’s SCPR, SISI. CEPR, FDIS, AUDT and ALEG Departments. Comments received were taken into account in the final version of the PPAR. 0) PROJECT BASIC DATA

1. Country Republic of Cameroon 2. Project Mbalmayo-Ebolowa Road 3. Loan Number CSICMITR186/015 4. Borrower Government of the Republic of Cameroon 5. Beneficiary Government of the Republic of Cameroon 6. Executing Agency : Ministry of Public Works’ and the Direction des grands travaux du Came&n 7. Scheduled Implementation Period January 1986 to December 1989

A. Appraisal Estimate m

1. Application for Financing 29 May 1985 2. Amount (UA million) 47.15 47.15 3. Interest Rate 8.30% 8.30% 4. Commitment Charge I% /yr 1% lyr’ 5. Repayment Period . 20 yrs 20 yrs 6. Grace Period 5 yrs 5 yrs 7. Loan Negotiation Date 12 September 1986 8. Loan Approval Date 22 September 1986 9. Loan Signature Date 2 February 1987 10. Date of Loan Effectiveness 13 October 1988

B. PROJECT DATA Aooraisal Estimate Actual

1. Total Cost (UA million equivalent) : 71.77’ 43.464 2. Financing Plan (UA million) J.E.L.C,m -.F.E. L.c. Total - ADB 47.15 - 47.15 34.96 3.56 38.52 - World Bank 3.30 3.30 - Government L -__24.62 24.62 1.64 1.64 Total 47.15 24.62 71.77 34.96 8.50 43.46

3. Deadline of First Disbursement : 30 June 1987 30 June 1989 4. Actual Date of First Disbursement 20 October 1988 5. Deadline for Last Disbursement : 31 December 1992 30 June 1994 6. Actual Date of Last Disbursement 4 April 1994 7. Works Start-up : October 1986 November 1988 a. Works Completion Date : April 1989 July 1991

‘Formerly Ministry of Equipment ‘Out of the undisbursed amounts ‘On rhe basis of the current rate nt appraisal ‘On the basis of the average rates of the UA throughout the period ol’dishursements for the various components (iii)

F. ENTREPRENEUR AND CONSULTANT

See PCR page (iii)

G. OTHER PROJECTS IN THE SECTOR FINANCED BY THE BANK GROUP I

Loan Amount Comp-Aopro- REP/ Title of Proiect ADBADFd ~letion PPARPCR (in million UA)

- New Air Terminal I. II and 111 4.76 - I972 I979 1986

- Extension of the Douala Port, 1st and 2nd Phases IO.00 1976 1979

- -Manfe-Ekok Road Study 0.95 I979 19x7

- Douala-YaoundC Road lO.OO I980 (South Douala Axial Road)

- Construction of the New Douala Passenger Station II.33 1982 I986

- Realignment of the Eseka-Maloume of the Douala-Yaounde Railway 22.80 1983 1987

- Yaoundt- Road Study I.641 19x5 not implemented

- -Foumban Road 18.22 1989 ongoing

- Cameroon Road Programme 95.00 0.55 1991 ongoing

‘Amounl reallocated to the economic recovery progmmmc -

(v) 1.7 Considering the various modifications, actual project realizations were: (i) construction of a dual carriage paved road, 101 km long between Mbalmayo and Ebolowa, a 7.40 m wide with two verges to the project area of 1.80 m; ii) construction of 20.1 km of roads, of which 17.6 km were paved, with access to the project are at Ebolowa for agro- pastoral shows, as well as a heliport of 2700 mr; and iii) procurement of a travelling crane for the provincial road department workshop in Ebolowa and traffic count and vehicle weighing material.

1.8 On the whole, the Mbalmayo-Ebolowa road build has good technical features. However, there are still negative effects on the environment: i) permanent ponds have been formed at right angles to the metallic tubes, killing nearby trees around and serving as breeding grounds for mosquitoes; ii) some village areas are often flooded; ii) the non- payment of expropriation compensation is a source of social tension. Moreover, none of the equipment procured under the project is operational. Indeed, the workshop where the travelling crane is installed is not in use, until the road maintenance material has been acquired and funds required for the commissioning of the traffic counting and vehicle weighing equipment are released.

1.9 The performances of the Borrower, the Government of Cameroon, the Executing Agency, the Ministry of Public Works, and starting in 1990, the Direction des Grands Travaux du Cameroun, were unsatisfactory.. The consultant responsible for works control and supervision accomplished his mission with satisfaction. The Entrepreneur’s work was of satisfactory quality in compliance with contract specifications and the contractual deadline. The Bank’s performance was unsatisfactory.

1.10 The project contributed to opening up the southern province and made possible the development of agriculture and forest production in the project area. Thanks to the improvement of travelling conditions and the lowering of transport costs, women play a more important role in production and in the associative life of the region. Trade, particularly in food commodities between Cameroon and her neighbours has intensified since the commissioning of the road. Nevertheless, the road’s contribution to increased regional integration will be significant only when the entire Yaounde-Libreville route which has several sections in poor condition, has been developed.

1.11 The recalculated internal rate of return (IRR), amounts to 11.7%, against 12.5% at appraisal. The PCR’s reassessment was l3.4%, which is still economically acceptable.

1.12 The sustainability of project benefits depend on the road’s maintenance. The country is currently facing financial difficulties; funds actually allocated to maintenance cover less than 10% of requirements. The transport sector project, which is about to start should enable a marked improvement in road maintenance financing, programming and implementation.

1.13 The project’s overall performance. quite satisfactory according to the Bank’s criteria, is rather good with an overall mark of 70%. dcspitc shortcomings in design and implementation. (vii) (ii) seek the funds necessary to commission traffic counting and vehicle weighing material as well as to train staff;

(iii) take the necessary steps to demolish the old bridge on the So’o in order to secure full hydraulic capacity for the new bridge;

(iv) ensure maintenance of the Mbalmayo-Ebolowa road and in particular, the rusty multilayer pipes;

69 determine, following consultation with the Ministries responsible for Public Works, the Environment and Forestry, and Fisheries, areas where water stagnates, which should either be turned into fish-breeding ponds, dried up or filled up;

(vi) formulate vehicle circulation regulations and have them applied; improve the quality of traffic counting, and check the loads of heavy trucks;

(vii) take the appropriate measures to reduce delays in loan effectiveness;

(viii) ensure the proper. application by the appropriate departments of Bank rules of procedure in the future, in order to avoid long delays in the procurement of goods and services;

(ix) ensure, without delay, periodic maintenance and/or strengthening of the Yaounde- Mbalmayo section, as provided for under the PST; and w start an updated technical and economic study of the Ebolowa- road (border).

To the Bank

(9 take the appropriate measures to regularize the financial situation of the BCEOM. consultant;

(ii) make it possible for supervision missions to review not only the physical implementation of projects but also and more so, the conditions of attainment of the objectives of all components. During these missions, the logical framework should also serve as reference and updated, if necessary. these missions should also occasionally comprise, experts such as environmental specialists;

(iii) ensure the strict application of the provisions under section 12.04 of the general conditions applicable to Bank loan agreements, concerning the keeping and auditing of project registers and accounts;

(iv) assist the Government in financing the commissioning of traffic count and vehicle weighing equipment. preferably in the context of the on-going project;

(v) make the Government aware of the implications. especially economic and financial, of loan effectiveness and project start up delays: PROJECT PERFORMANCE AUDIT MEMORANDUM OF THE MBALMAYO- EBOLOWA ROAD IN CAMEROON

1 OVERVIEW

1.1 Geographic and Economic Setting

1.1.1 Anchored in the , Cameroon covers nearly 475,000 km* and is bounded on the west by the Atlantic Ocean and Nigeria, on the north by , on the east by the Central African Republic and in the south by Congo, Gabon and . The relief offers a contrast, with highland regions unevenly distributed over the entire country hemmed in by narrow plains. The climate is also diversified; with in the south, an equatorial region featuring heavy rains, in the north, a Sudano-Sahelian region with light rainfall, where the dry season lasts seven months and in the centre, a Sudanese region with an intermediate climate. The vegetation changes from equatorial forest in the south to savanna steppe in the north.

1.1.2 The country is divided into 10 administrative provinces, with a population estimated at 12.8 million in 1994 and an annual growth rate averaging 2.9%. This population is made up of diverse ethnic, linguistic and. religious groups. The urban population represents 37.8% of the total. The illiteracy rate for those over eleven years of age went from 52.6% to 40.5% between the two censuses of 1976 and 1987. The crude labour force rate of the population according to the last census of 1987 is 36.8%.

1.1.3 After a period of sustained growth,. the country since 1986, has been faced with an economic crisis which has resulted in a steady decline of its gross domestic product (GDP)‘, from CFAF 4,100 billion in 1985/86, to CFAF 3,100 billion ,in 1993/94, at constant 1984/85 prices. Over the same period, the average annual nominal per capita income fell by 32% (before the devaluation of the CFAF).

1.1.4 Cameroon’s economy is dependent on diversified agriculture, a forest rich in varied species, important potential in hydroelectric energy and resources. The primary sector which accounted for 30.6% of the GDP in 1992/93 has experienced some growth since 1990/91. The secondary sector has declined steadily in volume since 1985/86 and contributed 26.1% of the GDP in 1992/93; the ‘industries dropped by 54.5% in volume from 1984/85 to 1992/93. The tertiary sector which contributed 28.3% of the GDP in 1992/93 has also experienced a steady decline since the onset of the crisis. Moreover, it is estimated that the informal economy accounts for more than 20% of overall economic activity, involving in particular textile, fuel supply and food products.

1.1.5 Public finances were effected by the reduction of economic activity as testifies the decline of the GDP and the shortcomings of the fiscal administration. Despite a downward trend of public expenses, stemming primarily from a decrease in investment expenses, the drop in oil and non-oil earnings led IO a growing budget deficit which accounted for nearly 7% of the GDP in 1992/93. The State’s unpaid bill accumulated. leading to additional constraints and distortions in an already difficult context. The situation Proiect Obiectives

1.3.2 Project objectives were: providing the new Southern Province with modern basic road infrastructure to enable the development of agricultural and forestry sectors, reducing transport costs and promoting regional economic integration, particularly in the area of agricultural processing industry. The indicators which make it possible to check the degree to which these objectives were obtained were not given at appraisal.

Proiect Description

1.3.3 The results expected of the project were:

(0 a paved dual carriage-way road between Mbalmayo and Ebolowa, 101 km long with a reference speed of 100 km/h; and

(ii) a fixed truck weighing.station.

1.3.4 The main project activities or components were:

(9 road construction works, including the supply and installation of a truck weighing station; and

(ii) works supervision and inspection.

2 PROJECT IMPLEMENTATION

2.1 Effectiveness

2.1.1 The loan was approved on 22 September 1986 and the loan agreement signed on 2 February 1987. The loan became effective on I3 October 1988, 20 months after signature.

2.1.2 This long delay in effectiveness stems primarily from latent red tape, made worse by inadequate logistic means, poor coordination of the actions of the various departments involved in the process, belated involvement of the loan recipients and constraints inside Cameroon, in preparing apparently simple documents. The long delay in effectiveness is not particular to this project; but affects most projects financed in Cameroon. Thus, the average duration between the date of approval and that of effectiveness is 20 months for I7 project loans approved between 1980 and 1991.

2.2 Procurement of Goods and Services

2.2.1 Various problems arising during the procurement of goods and services were reviewed in the PCR. which draws the conclusion that Bank rules and procedures were properly applied (see sub-chapter 3.5). This judgement however should be put in perspective considering the events analyzed hereafter. -5. 2.3.3 The first concerns: (i) the bridge on the So’o whose length was increased from 100 to 120 m, to ensure greater safety from problems of geotechnical and hydraulic stability of foundations; ii) modifications of the layout to avoid marshlands and the centre, where if the initial project had been maintained several private and public constructions had to be demolished. Mention can also be made of the replacement of the fixed truck weighing station by 3 full weighing/counting stations and I3 automatic road counters for the same amount, as well as the installation of a roller bridge in the hangar planned for Ebolowa.

2.3.4 The second aimed at reducing implementation costs so as not to overrun the initial financial package for the works contract, in accordance with article 33 of the said contract. Therefore, the 15 cm foundation layer of crushed gravel was replaced by, 20 cm of laterite gravel; lining in asphalt concrete was replaced by a layer of surface dressing, four 20 m wide bridges were replaced by multiplate pipes 360 cm in diametre.

2.3.5 To these modifications must be added the emergency programme implemented under the organization of the agro-pastoral show in Ebolowa, comprising firstly, a total length of I7 km of foundation layer covered by a two layer surface dressing and secondly, a heliport and its access road. Although the agro-pastoral event was mentioned during the contract award phase, especially to justify the choice of the COGEFAR-RAZEL Group, no operation had been planned in that connection.

2.4 Implementation Schedule

2.4.1 The project was faced with significant delays during the goods and services procurement phase, as stated in paragraph 3.3. I of the PCR. Delays were: 26 months for -the works contract award and 21 months for works supervision and inspection (see details in AMeX 3). Subsequently, works were carried out over a period of 30 months, in accordance with the contract, including additional works relating to organization of the agro- pastoral show in Ebolowa.

2.4.2 The long delays experienced are detrimental to the country in three ways: i) the payment of related commitment charges; ii) implicit or explicit rise in the cost of works; and iii) the concomitant postponement of the new road’s benefits. Financing Plan by Source and by Contract (in CFAF million)

Total Govern. IBRD ADB COlUCXtS Eslim. Actual Estim. Actual Estim. Actual Estim. ACtU.4 Amount % Amount 96

Works 28.420 15,953 9,940 451 1.096 18,480 65.0 14.406 90.3 Supervision 1.380 611 280 I71 1,100 79.7 440 72.0 Laboratoly 253- &I - 69 27.3 TOtal 29.800 16.818 10.220 635 l.za7 19,580 65.7 14,916 88.7

2.6 Disbursements

2.6.1 The financing plan by source and by contract presented above, shows that the ADB has disbursed, in respect of the works contract, 90.3% (CFAF 14,406 million) of payments to the enterprise, against 63.8% (CFAF 9,950 million) earmarked in the initial contract, then 86% (CFAF 14.705 million) in agreement with the Government under codicil N” 2 of the contract.

2.6.2 It should be pointed out in that connection that at works start-up in September 1988, at the request of the Government, the Bank had accepted to pay in addition to its own contribution (which was then 63.8%, the Cameroon counterpart, for the amount of its projected contribution under the contract; the Government was to take over until works completion. In February 1990, the Bank’s share was raised to 86%. Obviously, the executing agency continued to send payment requests to the Bank without taking into account the take-over agreed upon and the Bank continued to disburse much more than the share it was to finance, no doubt through negligence on the part of Bank departments.

2.6.3 Moreover, the PCR pointed out, that BCEOM had been overpaid CFAF 13,485,664. Following further audits by the PPAR preparation mission, on the basis of details on disbursements by category, established by Bank departments, the overpaid amount was rather CFAF 19,929,007, i.e. the difference between the total amount disbursed made by the Bank and acknowledged by the BCEOM and the Bank’s share in the final statement sent by the executing agency to the Bank.

3. PROJECT ACHIEVEMENTS

3.1 Under the project a fully paved,road was constructed. 101 km long, between Mbalmayo and Ebolowa, from the Mhalmayo-Sangmclima (PK 6 of the RN 2) crossroads to the Ebolowa entrance (PK 107). The roadway is 7.40 m wide, with two verges 1.80 m in width. The road’s features correspond to those with a reference speed of 100 km/h and a 20 year economic life span.

3.2 The emergency programme for the Ebolowa agro-pastoral show achievements involved: i) I7 km of paved roads made up of a 20 cm foundation layer and a two-layer surface dressing on a width of 7m, including I3 km hctwcen Eholowa and the Nkoemvon cocoa/ seed project station (on the Ebolowa-Amham-Gabon border road). and 4 km -9- its increasingly heavy traffic. This solution consists in maintaining the initial layout, reshaping the existing carriageway, putting a foundation layer and lining over 7 metres, without the verges and minimal sanitation. On-the-spot asphalting is a very cost-effective option which should however, be applied in a more selective way.

4.1.4 The solution of a 120 m long bridge for the So’o crossing (instead of the projected 100 m) buttressed by stakes anchored in sound rock (instead of superficial foundations), makes it possible to rectify errors in design and ensure greater safety from problems caused by from the geotechnical and hydraulic stability of foundations. However, maintaining the former bridge reduces the hydraulic section at right angles to the new one, with the risks entailed; provisions should be made for its destruction and its separation from the river bed as soon as possible.

4.1.5 In addition, replacing 4 bridges of 20 m by 360 cm diametre multiple plate pipes, (three in 3 rows and the fourth in 4 rows of piping) is acceptable. given the detailed design. It seems therefore, that the initially planned bridges were over-designed in standardizing the elements of the apron. However, the technique used in laying the pipes (higher than natural terrain), makes these structures less effective and has negative effects on the environment (see sub-chapter 4.3).

4.1.6 The traffic counting and weighing equipment used to monitor the road network although undeniably useful has still not been commissioned almost four years after procurement. Their installation and training of the staff responsible for operating them, requires funds amounting to CFAF 20 million, still not released’.

4.1.7 In addition, the shed in Ebolowa equipped with a roller bridge is still not in use, pending procurement of road maintenance equipment with external funds.

4.2 Economic Performance

4.2.1 The economic justification of “emergency works”, i.e. 20 km of road development, and construction of a heliport, carried out in the context of preparations for agro-pastoral shows to be held at Ebolowa, is not patent, even if the show was actually to take place. The fact that the show was in the end not held in Eholowa robs this part of the investment of the little interest which it could have aroused. The subsequent developments concern primarily therefore, the main part of the project, that is.to say, the construction of the Mbalmayo-Eholowa road proper.

Economic Rate of Return

4.2.2 An economic reappraisal of the project was carried out on the basis of the HDM 3 model (Highway Design and Maintenance) designed by the World Bank. Some economic evaluation approaches of the PCR are inadequate and the supplementary data collected during the PPAR preparation mission make it possible IO hetter understand traffic projections. Thus:

I As SlSl recommended. the hudgcl slwuld he increased for operation of this cquipmcnt. That should determine the practical terms of their opcralion. - 11 - Poor management and non-renewal of the licences of certain lumbering companies led to decreased production in 1991/92 and 1992/93 for and Ntem, but there was a marked recovery in 1993/94. Timber export by Ambam recorded an annual average growth of 14% from 1990/91 to 1993/94.

4.2.6 In agriculture and livestock breeding, animal and fish productions maintained sustained growth from 1991/92 to 1993/94 in the Southern Province and Department of Nyong and So’o. The corresponding prices fell from 1989/90 to 1992/93. With regard to food production, there was an increase both ih the areas farmed and in productions from 1989/90 to 1993/94 in the Departments of Mvila and Ntem valley. The prices of the main food products dropped from 1991 to 1993.

4.2.7 On the social plane, there is a net improvement in the access to health services. Thus, inhabitants of the Southern Province no longer consider going to Mbalmayo or Yaoundt arduous for specialized services like most of the laboratory tests or otorhinolaryngology treatments. Furthermore, as the movement of persons and sale of products have been facilitated there is an increase in “common interest groups” (GIG) where rural women form the majority and which constitute, as it were, agricultural and commercial cooperatives and have, in certain places along the road, goods storage facilities and selling points. It is true that the number of such places is still very small; including their rehabilitation in the project would have been beneficial to the rural population of the Departments of Nyong, So’o and Mvila.

4.3 Impacts on the Environment

4.3.1 No environmental impact study was carried out at the time the project was designed. During the works implementation phase, no environmental problems were raised. It was the PCR preparation mission which raised the problems following the appearance of ponds upstream of the metallic pipes.

4.3.2 The appraisal report had mentioned the various aspects of the project likely to have positive or negative impacts on the enlironment. The positive impacts are related to the removal of pollution caused by dust, with the improvement of the activity of populations and their living conditions; likewise, the drainage structures should ensure “the maintenance of communications between the water surfaces on both sides of the road, required for flora and fauna”. On the other hand, the adoption of tense geometric features should lead to a significant thinning in the ecosystems of the area; (his negative impact could however be mitigated by the growing of vegetation on the excavation and embankment slopes. The PCR, after having taken stock of the stagnation of water owing to the technique of laying the metallic pipes, recalls the solutions recommended by the consultant in .charge of works supervision and inspection in a report prepared at the Bank’s request (paragraph 3.8.1 of the PCR).

4.3.3 The consultant’s report on the environmental problems related to metallic pipes mentions 39 sites out of a total of the 116 pipe passage ways where swamps were observed. Seven of these swamps, which existed before the works, extended after the installation of the pipes. The death of big trees and the development of water-borne diseases ( and bilharziosis) are the two negative impacts noted. 13 provided for in the works contract was taken for economy’s sake by the executing agency which was counting on the quick recovery of vegetation owing to the ambient equatorial climate. It should however be noted that 4 to 6 years after earthworks, there was little change in the appearance of slopes and former material deposits.

4.3.10 Despite modifications in the layout mentioned in paragraph 2.3.3, the clearing out of populations, with the .destruction of crops and houses, could not be avoided. Unfortunately, the payment of compensations was not always made, thus creating social unrest.

4.3.11 No structure giving pedestrians access to the localities and other places of residence situated along the road, was built in the areas of large-scale cuts and fills. To remedy the situation, the residents nearby dug makeshift stairs directly in the slopes which are consequently further exposed to risks of erosion.

4.3.12 However, the recent establishment of a ministry in charge of’environment (Ministry of Environment and Forestry) which has a Department of Environment should enable more consideration to be given to environmental problems when designing projects in order to minimize their negative impacts. A national environment management plan is currently being drawn up, it will supposedly be available in late 1995. In keeping with the new policies adopted, a prior impact study will be required for certain categories of projects, including road projects.

4.4 Performances of the Parties

Borrower

4.4.1 The fulfilment of the conditions for loan effectiveness and the procurement of goods and services, were very much behind schedule for reasons mainly attributable to the Borrower (sub-chapters 2.1 and 2.2). Besides, modifications were made to the project during the works implementation phase without the Bank’s prior approval and the loan resources were utilized for emergency works within the context of the agricultural association, without adequate justification (paragraph 4.2.1).

4.4.2 Because of the many hesitations of the Cameroonian Government, the loan balance upon completion of the works could only be utilized lately. The Government’s commitments were not respected regarding neither the counterpart contribution to financing of project nor the budgetary allocations for road network maintenance. Compensation arrears for the expropriated populations have not yet. been fully paid. The Borrower’s performance is therefore not satisfactory.

Executine Agency

4.4.3 During project implementation, the executing agency moved from the Roads Department of the Ministry of Public Works to DGTC where the project management was often changed. This affected the administrative and financial management of the project (Paragraph 3.8.3 of PCR). Apart from difficulties relating to the procurement procedures, the information available does not permit an objective evaluation to be made of the contribution of the Roads Department to the project, especially during the first six months - 15 - 4.4.10 The decision to finance the emergency programme under the agro-pastoral association initially planned at Ebolowa in 1990 (decision which was one of the Government’s justifications for the choice of COGEFAR-RAZEL group) does not appear fully justified from the technical and economic viewpoints. The precariousness of the technical solution embarked upon has already been revealed in paragraph 4.1.3. The cancellation of the agricultural show renders uncertain evaluation of the economic interest of the investments made even if the 13 km section built to serve an agricultural research station located on the Ebolowa-Ambam road plays, because of its position, a major economic role within the framework of trade between Cameroon, Equatorial Guinea and especially Gabon, which are large importers of Cameroonian products.

4.4.11 There were only two supervision missions, one before works start-up and the other towards the end of works. In addition, these missions did not pay adequate attention to the conditions of achieving the objectives as demonstrated by the problem of equipment procured under the project and the lack of initiative to rehabilitate the Ebolowa-Ambam section (border). The missions’ also seem to have overlooked the environmental problems.

4.4.12 With regard to disbursements, there were also problems as the Bank which should have borne only 86% of the costs of works according to amendment no2 of the contract, finally disbursed 90.3 % of the said amounts. The excess amount received by the Consultant should also be pointed out. The Bank’s performance is therefore not satisfactory.

5. SUSTAINABILITY AND DEVELOPMENT

5.1 Sustainabilitv of the Impacts

5.1.1 At present, the road maintenance budget accounts for 20% of expressed needs and the expenses actually financed are between 20 and 30% of the amounts registered. For example, the budget of the 1993/94 fiscal year, amounting to CFAF 10 billion, was disbursed to the tune of CFAF 1.9 billion. But the tollgates built on the tarred roads, which should have generated annual revenues of about CFAF 6 to 8 billion, earned less than CFAF 1 billion in seven months, from July 1994 to January 1995.

5.1.2 Moreover, the works programming system set up under previous projects was abandoned. The works programmes are therefore drawn up by the provincial road maintenance services after adoption of the State’s annual budgets whose allocated amounts determine in the final analysis the nature and volume of the works to be implemented. As a result, road maintenance is concentrated on routine operations and the removal of critical points.

I The following observations were made hy SISI:

the equipment installation problem was pointed out by the last supervision mission in May-June 1991 and Cameroonian authorities assured that the problem would he corrected:

the file for development of the Ebolowa-Amham road section was considered by SISI up to May 1994 when the loan balance was allocated to Cameroon’s Economic Rehabilitation Programme;

environmentnl problems didn’t nppex until the last supervision. 17 - 6. CONCLUSIONS. LESSONS AND RECOMMENDATIONS

6.1 Conclusions

6.1.1 The project achieved its main objectives of endowing the southern province with a tarred and technically sound road which constitutes a vital traffic artery in the zone. The changes made during works implementation helped correct most of the shortcomings in the initial design. However, the savings sought by abandoning the implementation of the asphalt concrete layer could, in the long run, prove detrimental if there is no periodic maintenance within the required deadline. Furthermore, the judicious and efficient utilization of resources left much to be desired with regard to the implementation of “emergency works” under the preparation of the agricultural show in Ebolowa, which in the end did not take place. There was also the fact that the operational functioning constraints of the equipment procured under the project were not taken into consideration.

6.1.2 The technique used in laying the metallic pipes as well as the longitudinal profile adopted created environmental problems. If, in the first case, the development of tish- breeding ponds yielded, in spite of every thing, revenues for the populations, in the second case, the suppression of initially planned and the digging of stairs by the residents in the vicinity are likely to lead to the erosion of the slopes in the long run.

6.1.3 The technical features adopted for construction of access roads for the agro- pastoral show appear inadequate in view of the traffic demands’, especially on the Ebolowa- Nkoemvon section. The investments made are therefore likely to be quickly lost. In addition, the signalling is inadequate which does not guarantee the safety of road users.

6.1.4 The procurement of the various equipment should make it possible to reinforce the maintenance capacities of the maintenance equipment with regard to the travelling crane installed in the hangar built at Ebolowa, and to improve the management of the network through the monitoring of traffic and running costs of vehicles with regard to the counting and weighing equipment, Unfortunately, none of the equipment is operational either because the road maintenance equipment was not acquired or because the credits needed to put the equipment into operation were not released.

6.1.5 The project has enabled significant improvement in transport and traffic conditions between Mbalmayo and Ebolowa, leading to a reduction in transport cases from which the various categories of users have been able to benefit. However, the Ebolowa-Ambam-Gabon border section which remains an earth road, and the continuing deterioration of the Yaounde- Mbalmayo section are penalizing for all the roads linking Cameroon to Gabon and to Equatorial Guinea.

6.1.6 Construction of the road has helped open up the Southern Province and developed agricultural and forestry production in the project area. Thanks to the improved travel conditions and the reduction in transport costs, women now play a more important role in production and in the associative life of the region.

6.1.7 Trade, especially of food products, has intensified between Cameroon and neighbouring countries since the commissioning of the road. Nonetheless, the road’s contribution to strengthening regional integration will be effective only when works have - 19. there should be systematic independent auditing of project accounts. The terms of reference of such an audit should focus essentially on the agreement of contract terms with daily statements of the materials used, work done, the balance, as well as donors’ disbursements and the amounts actually received by service agencies.

6.3 Recommendations

To the Government

(0 effect, as soon as possible, the payments of compensation arrears for expropriation not yet settled, as this is part of the Government’s share in financing the project (paragraph 43.10);

(ii) look for the credits needed to operate the traffic counting and vehicle weighing equipment, as well as credit for staff training (paragraphs 4.1.6 and 6.1.4);

(iii) take the necessary steps to demolish the old bridge on the So’o in order to ensure the full hydraulic capacity of the new bridge (par. 4.1.4);

(iv) ensure maintenance of the Mbalmayo-Ebolowa road. especially the corrugated iron pipes that are already rusting (paragraph 5.1.4):

69 determine, in consultation with the ministries in charge of public works, environment, forestry and fisheries, areas where water stagnates which should be transformed into ponds for fish breeding and the areas that should be drained or filled up (paragraphs 4.3.4 to 4.3.6);

(vi) prepare and implement vehicle traffic regulations; improve the quality of traffic counting and see to the inspection of the loads on lorries (paragraph 6.1.4);

(vii) take the appropriate steps to reduce the time required for loan effectiveness in future (paragraphs 2.1.2 and 2.4.2):

(viii) ensure good application, by the relevant services, of the Bank’s rules of procedure during future projects in order to avoid long delays in rhe procurement of goods and services (paragraphs 2.2.2 to 2.2.4 and 2.4.2);

(ix) see to it that periodic maintenance/strengthening of the YaoundC-Mbalmayo section planned under PST arc implemented as soon as possible (paragraph 5.5. I): cd conduct an updated engineering and economic study of the Eholowa-Ambam (border) road (paragraph 5.5.2); *...*- .:l...‘ ‘. .‘.... I ,,..,,. (,. ‘. _” to... ” 1.,*. ~. ,,..‘_ ‘ . .I...... - ..~..” ‘~.s...... <. .L-. .,,...._ ,..

i ANNEX2 Page 1 of 2

REPUBLIC OF CAMEROON MBALMAYO-EBOLOWA ROAD PROJECT

Matrix of the Proiect’s Evaluation

NARRATIVE INDICATORS VERIFICATION ASSUMPTIONS ctoral Obiectives rengthen regional integration Data on trade benveen Cameroon. Gabon and Staris& on trade at Ahang-Minko’o border. Equatorial Guinea Annual statistics produced by the Provincial .stainable contribution to agriculture and Dara on agricultural production and forestry in Delegations from Minisrrirs on forestry. rewv develooment in Southern Province the Southern Province aericulrural. animal and tisheries oroduction biectives of the Proiect qmve the level of servicr on the road Reduce by 36% the rranspon Lime between Record wave1 lime berwrm Yaounde and Effectivr improvement of passeng& and gment linking Cameroon 10 Gabon and to Yaounde and the border at Abang-Minko’o Abang-Minko’o merchandise travel at borders and reform Iuatorial Guinea. berween 198i and 1991. of procedures and customs taxes according to UDEAC recommendarions. On the average only a 481100 detleclion on the Deflection measures campaign report b! Mbalmayo-Ebolowa road in 1991. LABOGENE in 1991.

21% increase of daily traffic on Ihe Ebolowa- Dara on rraff~ surveys carried OUI by MINTP Menaong road between 1985-1994. services.

:duce rranspon costs between Mbalmayo and On the average 55% reduc@on of unit vehicle Assessmem of the UVOC by category of vehicle Effective and regular maimenance of RN2 1olowa. operation costs (UVOC) as well as the IRR according to the HDM IRR (F’PAR): 1 I .7% model. rcngthen the road network‘s management Linear roads having undergone thorough No derailed repon. Mainlenance with MINTP wcify by MINTP. inspection. traffic surveys and maintenance. services. ANh'EX3 Page 1 of 4 REPUBLIC OF CAMEROON MBALMAYO-EBOLOWA ROAD PROJECT STATEMENT OF THE DURATION OF THE AWARD OF CONTRACTS

~LMAYO-EBOLOWA ROAD PROJECT COh’TRACTS

-T ------II / ,a,- ! ,3x, ,“. . . .,.. ._ . . *i ,,. *,- n, .,. :. I/._ . . . .,.. .- . . P. “^ .- “. . . ,.. *< . . *, -. . . I. !!._ .^ “,. ,. .,, n, ., .., _, 0, ._ I. -zi I lification g and Contract ct Negotiations gnature RIXG h SUPERV.

:i:..: ...... ?...... g up Shortlist !.j : i: /...... tation

% i.. ,,: fgT&$?J --_- -_-...... al Projections I......

Delays

STS

WORKS Late %m up of the procedure due 10 delayc in loan negolialinns. The Government took a long time 10 analyze prequalilicalion requests. The Bank. in wm.took considerable lime 1o reply. Bank reservations on the award proposal made by the Government extended the deadline.

SUPERVISION The Government did not begin the procedure to select a consultant early enough. The Bank did not react promptly. The office in Yaounde had LO remind Ihe Government in this regard. There was a disagreement bewren the Governmenr and Ihe Bank regarding the shorllisl. A considerable difference of opinion exisred brwecn the Bank and tie Government on the choice of consullard. which lasted almosl I2 months. I &g& Page 3 of 4 B. DURATION OF THE WORKS CONTRAm PROCEDURES

Bl : SUMMARY TABLE Situation as at 31.05.93 m Wnrhw “avr

operator Activity Project Average Gap A B C D E F

PREPARING BIDDING DOC. DGTC Drawingup Documents 37 37 37 37 37 37 ( DGTC Transmission Lo ADB I I I I I 1 ( ADBiDGTC Comments/Resumption 37 37 37 37 37 37 ( ADB Approval Bidding Dot. 9 9 9 9 9 9 (

84 84 84 84 84 84 (

BIDS DGTC Launching 230 232 28 28 28 109 9! ADB Deadline/Bidding 88 51 7s 45 73 66 If CNM Opening/Bids 1 I I I I I ( CNM Bid Analysis 33 33 43 51 43 41 i CNM Review Analysis Report II5 I I I I 24 4t PM Govt’s Choice 0 30 36 132 100 * DGTC ADB Information 0 4 4 2 8 * ADB ADB Approval 0 0 48 s 33 * DGTC Award Contract 0 0 4 8 8 * DGTC Drafting Contract 0 0 I5 7 7 t DGTC Inviting Contractor 0 0 I I I * * * 256 281 303 *

CONTRACT DGTC/Contractor Negotiations 0 0 52 I I5 * l

COIltIWi”~ Contract Subscription 0 0 I I I * * CNM Presentation CNM 0 0 0 0 0 t l DGTC Transmission Project to ADB 0 0 32 70 4 * l ADB Approval Project Comract 0 0 29 0 4.5 t I MINTP MINTP Signature 0 0 I 3 2 * . DGTC Conformity visa (DGTC) 0 0 I I 2 t t pivr Contract Signed 0 0 5 I 2 t . DGTClContractor Notice of Contract 0 0 I 1 4 * I C”nt~Ct”r Registered 0 0 5 4 I * l MMPAT Loan effectiveness 0 0 62 62 39 * l ADBiBIP Startup Advance 0 0 74 74 74 * l DGTC Order to startup service 0 0 69 68 74 * l

* * 332 286 264 * l

A : BAMENDA-BATIBO Road B : BACHUO-AKAGBE-MAMFE Road c : ESEKA- R”ad D : NDITAM-NGAMHE-TIKAR R”ad (BRIDGE ON THE KIM) E : BRIDGE ON TIIE MAYO BOUDA F : SEGMENT ‘FALAlSli MELONC-DSIIANG ROAD * Wait F”llnwi”g Prwxdurr ** Wait End of on Going Sbdics - , ANNEX 4 Page I of 3 REPURLIC OF CAMKROON MIlAI,MAYO-EIIOI.OWA ROAD PRO.IECT f! Agricultural. Animal. Fishcries, and Forest Produclion in the Service Arca

AGRICULTURAL PRODUCTION lmmcdiate Service Area Nyonpo & So’o department in the Ccnlral province of the Mvila and Ntem departments in the soutl~ern / plownce.

I. I . . 1

ANNEX 4 Page 3 of 3 3. FORESTRY PRODUCTION AND EXPORT BY AMBAM \. FORESTRY PRODUCTION

Forestry Production (m’) 1987/88 1988189 1989190 1990/91 1991192 1992193 1993194 Southern Province Total 371820 379146 376755 459415 368007 296207 348675 Ntem & Mvila Dept. 65086 80522 83449 126326 73360 49076 Centre Province Total 450288 378202 414296 319742 Nvone & So’o Dem. 16988 17293 36407 13230

5. EXPORTS BY AMBAM

1988189 38013 4991 43004 3462 1989/90 64268 7179 71447 4121 1990/91&3 1 5590 I 62423 1 6649 ( 1991192 60605 11140 71745 8656 1992193 14796 52478 67274 5622 AMBAM Tank Problems 1993194 92876 1676 AMBAM Tank Problems

Sources: Forestry Directorate and South Province Delegation of MINEF ANNEX 5 Page 1 of 6 . REPUBLIC OF CAMEROON MBALMAYO-EBOLOWA ROAD PROJECT

ECONOMIC REVALUATION

1 The project's economic revaluation, ‘involving the cost assessmenl and the economic benefits concerning the Mbalmayo-Ebolowa road, is made hy using the HDM 3 model.

Traffic 2. Considering that the observations of traffic surveys carried ou( by MlNTP services seem, in general, not to be very viable, one is limited IO using the surveys made in 1993, including one which was carried out at the specific request of me African Development Bank, The average finding of the two surveys performed in 1993 on the Megong-Eholowa segment is as follows:

AADT’ V.P.” u.p.m cz 0 Jg. 156 59 125 37 23 IO

1989 normal traffic was deducted from these calculations while considering an annual increase of 2% and while assuming mat 1993 traflic includes 10% generated traffic. Generated uaffic should increas gradually 10 allain: in 1993> lhe values taken into considerarion in IIIC I-IDM asscssmcn~ (see page 3: tl:iui fol- El03 Mal’).

3 Data recorded for asscssn~en~ by HDM am:

Monetary Unit : CI:AF 1000

L:IlK PJJ2P.Route E:bel-Ebol. 1 SECTION Al01 1 114.0 A102 - SECTION DATA " ALL A201 ENVIRONMENT 0.1500 650.@ A202 GEOMETi?Y 40.00 100.0 5.500 2.0.4000 2. A203 CONDITIO!? 150.00 1 A309 SURFACE TERR 40.00 30.00 16.00 10.00 lS.CO A301 BASEjSUBGRhDE 45.00 33.00 28.00 24.00 2o.co A302 HISTORY 1 h303 END LINK A211 END SERIES A212

5 2 P.V.=Private Vehicle; P.U.=Pick-up; C2=double axle lorry; ~3 tri.ple axle lorry; ARE=Articul.ated I:nsemble -

Annex 5 Page 3 of6

TRAFFIC NORM N El01 DESCRIPTTrafi~c normal El02 NEW ADT 1989 1 131. 49.105. 32. 20. 9. El03 NEW ADT ._^_ - ..-.. _-- IYY" 3 '2. 2.. 2. 2 2. 2. El03 T(fiw AUT 1997 3 3. 3. 3. 3: 3. 3. El03 NEW ADT 2000 3 4. 4. 4. 4. 4. 4. El03 EN0 TRAFFIC El04 TPAFFIC IND. G El01 DESCRIPTTrafic induit El02 NEW ADT 1.1 1. 1. 1. 1. 1. 1. El03 NEW ADT- 6 4 20. 30. 30. 40. 40. 40. El03 .END SERIES El05

EXO B-C C0MP FlOl DESCRIPTBesoin Dro9ran;me FlO2 NEW BENEFITS 0.00 0.01 0.00 F104 NEW BENEFITS :: 0.00 0.00 0.00 F104 END EXO B-C FlO5 END SERIES F106

ALTERNATIVE PNZRSANS GlOl TRAFFIC NORM1989 Gl02 MAINTENANCE SANS1989 1 GlO5 END ALTERNATIVE G107 ALTERNATIVE RNZRAVEC Cl01 TRAFFIC NORM1989 GlO2 TRAFFIC IND.1989 I> . . CONSTRUCTIONCONS NAINTENANCE CONS1989 1 MAINTENANCE A"ECl992 1 EXO B-C COMP1989 END ALTERNATIVE G107 END SERIES G108 GROUP ALTERNATIVE CALCSANS d:i:~-ecr road HlOl LINK-ALT RNZRSANS H102 GROUP ALTERNATIVE CALCAVEC tarred road HlOl .;LINK-ALT RNZRAVEC HlO2 END GROUP ALTERNATIVE HlO3 END SERIES H104 LINK P.NZR ALTERNATIVE SANs 1101 USER COSTS DETAILED 1992 1107 LINK RNZR ALTERNATIVE AVEC 1101 USER COSTS DETAILED 1392 1107 END SERIES 1109 STUDY ECON JlOl COMPARE 3102 AVEC CALC SANS 5103 n DISCOUNT RATES 1;. 5106 END STUDY 5107 END SERIES JlO8

RUN TITLE Nbalmayo-Ebolowa 1989 2011 KlOl DATE 04 KlO2 CURRENCY Tho"s::ds WA 1.00 K103 ROUGHNESS 01/- KlO4 READ: K106 ALL DATASETS K107 SCAN: .KlOP ALL DATASETS K107 ECHO PRINT: Klll .- ALL DATASETS K107 MODELLING 0 K114 EVALUATION K115 END SERIES K116 ( HDM REPORT - 123

ECONOMIC COSTS

DATE 24104195

PASSAGE Mbalmayo-Ebolnws

:.:n billion CFAFj

Year Cost in >himenance Normal Gweraled Normal Generated Generakd TO&l Capi1.4 CW Tariff Expon Traffic Traffic COSl Economic Export cost Traffic cost Time Cos Time Cast COSC -..------.------.------_------__-__--_--.__-__-____ \‘i’~1u+nx RN2.R .. VSTH LENGTH 101 1989 7.641 2.302 0.073 0.282 0.003 -0.010 10.290 1490 6.517 2.638 0.081 0.316 0.003 9.556 1991 1.642 1.386 0.039 0.160 0.002 3.246 1992 0.000 1.421 0.039 0.184 0.002 1.653 1993 0.008 1.454 0.039 0.166 0.002 1.696 1994 0.008 1.467 0.466 0.191 0.050 2.206 1995 0.008 1.522 0.479 0.195 0.051 2.256 1996 0.011 1.556 0.491 0.199 0.053 2.311 1997 0.598 O.OOR 1.610 0.507 0.206 0.054 2.983 1996 0.008 1.664 0.524 0.212 .0.056 2.465 1999 0.008 1.720 0.542 0.219 0.058 2.547 2000 0.008 1.796 0.566 0.226 .0.060 2.657 2001 0.000 1.875 0.591 0.237 0.062 2.773 2002 0.008 1.957 0.617 0.247 0.065 2.894 2003 0.011 2.044 0.645 0.257 0.068 3.024 2004 0.598 0.003 2.134 0.673 0.266 0.070 3.752 2005 ‘0.008 2.229 0.703 0.279 0.073 3.293 2006 0.008 2.326 0.735 0.290 0.076 3.430 2007 0.008 2.433 0.768 0.302 0.080 3.591 2006 0.008 2.542 0.803 0.315 0.083 3.751 2009 0.008 2.656 0.639 0.326 0.087 3.916 2010 0.013 2.776 0.877 0.342 0.090 4.099 2011 -5.530 0.026 2.903 0.917 0.357 0.094 -1.233