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FeE Rehabi Iitation

IMPLEMENTATION PLAN

CONTRACT PCE-I-809-99-000030, TO#809 USAID RAISE IQC SUBMITTED TO USAID/ SUBMITTED BY CHEMONICS INTERNATIONAL

April 6, 2001 t

Chemonics International

FCE Rehab

Chemonics International

USAID RAISE lac No. PCE-I-809-99-000030, Task Order 809

Madagascar FCE Rehabilitation

PROJECT WORK PLAN

Submitted April 6, 2001 Table of Contents

A. Preamble 1 B. Strategic Challenges and Responses 3 C. Program Plan 7 C.1. Fast Track Activities 7 C.2. Master Plan Study 9 D. Rehabilitation Schedule 9 D.1. Implementation Phase I 10 D.2. Implementation Phase II 10 E. Project Staff and Organization 10 F. Monitoring and Evaluation 11 F.1. Monitoring 11 F.2. Evaluation 12 G. Budget 12

Appendices 14

Fast Track Detailed Planning 15

Terms of Reference, Master Plan Study Team 18 "

A. Preamble

The FeE Rehabilitation team begins this project at once inspired by the immense possibilities to contribute in tangible ways to the economic life of and the protection of its threatened environment and humbled by the enormous challenges implied by the project. We recognize that we are facing ambitious objectives that must be accomplished with limited means, in a relatively short period of time, and under conditions that cannot always be predicted or controlled, The strategic challenges defined in the next section reflect our recognition of the opportunities and potential pitfalls in the path before us.

The FeE is a vital infrastructure for the economy of the Fianarantsoa region and contributes significantly, as shown by last year's PAGE studies, to the conservation of highly threatened forest resources and, particularly, to the preservation of the Ranomafana-Andringitra forest corridor. Studies have shown that a functioning FeE will result in the preservation of some 100,000 hectares of natural forest that would otherwise be destroyed by tavy agriculture as farmers abandon sustainable production practices that currently depend on rail transport for the commercialization of the harvest. If the train runs, pressures to transform the forest into annual crops of rice and manioc will be substantially reduced.

The future of the FeE was cast into doubt by the devastating cyclones that ravaged the Fianarantsoa region in February and March 2000. Eline and Gloria dumped massive amounts of rain on this mountainous zone in a brief two week period blocking the rail line with more than 280 landslides and washing out significant stretches of track. Initial observers found it hard to believe that the line would ever reopen again. But reopen it did, after heroic interventions by dedicated train workers funded by USAID and other emergency authorizations. The line was closed for only three months but when service resumed the system was still highly vulnerable as the train wend its way between unstabilized slopes and over temporary rail beds. Over the next nine months, a second round of investment contributed to further stabilization of the line but funds were still insufficient to fully repair damage to the line.

The cyclone recovery funds available under this project will enable the completion of these emergency interventions but, equally important, will reinforce both infrastructure and management systems needed to reduce the impact of further cyclones (for Cyclone damage to the FCE in early 2000 threatened to example, better drainage permanently close the line with devastating effects on the infrastructures and the systems ecology and economy of the zone needed to maintain them). They will also be used to strengthen infrastructures including rails, bridges, and tunnels, thereby reducing the line's vulnerabilty to future cyclones. In addition to these more technical approaches, the project will also continue LDI's strategy of working with local populations to create partnerships supporting the rail system since these social systems are vital to reducing human activities (such as the cultivation of rice and manioc on steep slopes) that threaten the line with erosion. Wherever possible, proven low-cost technologies such as stabilization with vetiver grass will be used to reinforce infrastructures and slopes and ensure longer term stability of the line.

In looking at the the impact of the train on the environment of Fianarantsoa , the PAGE studies adopted a twenty-year time frame. We know, however, that the train's impact on the economy and environment of the region also has a short term dimension. Farmers living in the region served by the FeE make decisions each year on whether to invest in new perennial tree crops, whether to replace

1 their current trees with hillside rice or manioc, and whether to clear new lands for annual crops in the forest corridor. The more that these farmers believe that the train is providing and will continue to provide reliable service, the more they are willing to invest in tree crops, reassured that they will be able to market the produce and buy rice to feed their families. Conversely, the more the train appears to them as a fragile and unreliable system, the more likely they are to take the risk averse strategy of producing subsistence crops, with all the pursuant environmental damage that implies.

The mood along the FCE line is currently one of guarded optimism. Farmers follow the progress in rehabilitating the line with great interest. There are some clear indications that they are already beginning to calculate their agricultural production strategies as a function of expectations that the line will remain in operation. One of the best indicators of this relatively optimistic prognosis on their part is the number of farmers who have expressed a strong interest in participating in the community component that offers farmers fruit trees in return for their agreement to abandon rice and manioc production on unstable slopes. This interest has been expressed not only by those eligible (because their fields are immediately adjacent to the line) to participate in the community component but also to farmers further away who are requesting similar programs through LDI's Kolo Harena groups.

Hence, there is both a short term and a medium/long term dimension to the FCE's impact on the environment and economy of the region. It is clear that if the FCE goes out of service, the long-term effects on the region will be disastrous (unless the FCE is replaced by alternative road service, which is highly unlikely for economic and technical reasons). The GoM's strategy, being developed with the support of LDI, to privatize the line within the next two years is an explicit commitment to addressing the longer-term viability of the line. The role of the FCE Rehabilitation project in this process is to ensure that the line is as attractive as possible to potential concessionaires and therefore to increase the chances that privatization will occur in a timely fashion and will be undertaken by serious economic actors who have sufficient assets to make a long term commitment to operations in Madagascar. This means that we must focus our investments on those infrastructures that are critical to ensuring the financial viability of the line. Previous financial analyses (Fivoarana) have clearly demonstrated that at least in the short term no private company will earn sufficient returns to enable it to invest in needed infrastructure rehabilitation. And furthermore, it is clear that no reputable company will take over the line without at least minimal assurances of its structural integrity.

In the short term, the need to maintain train operations is driven by two issues: first, as noted above, the greater the perceived unreliability of train service, the higher the motivation for farmers to abandon sustainable agricultural practices The rehabilitation of drainage infrastructures and their based on tree crop production in favor of continued maintenance is critical to ensuring the resistance of unsustainable subsistence crops. the line to future cyclone damage. Farmers are generally understanding of short-term closures (such as those caused by cyclones and other natural disasters) as long as they see palpable progress toward reopening the line. Their agricultural decisions are more heavily influenced, however, by fears concerning the general degradation of service which they see as potentially leading to the permanent closure of the line ... or service so unreliable as to make the transport of fruit unacceptably risky. Hence any increase in unreliability over the next year, especially given all the local misapprehensions about privatization, will almost certainly result in increased tavy and annual crop production on already cleared fields.

The second issue regarding train service over the next twenty months is project driven. This project cannot possibly attain its objectives if the trains needed to transport materials and people to work sites do not run with at least a modicum of efficiency and reliability. The nature of the infrastructure investments to be undertaken (tunnel, bridge, and track repair, for example) will require the transport

2 of massive quantities of construction materials such as ballast, rails, cement, and stone blocks. The time available to complete the work is so short that significant delays in deliveries will result in work not being completed by the end of project in December 2002. LDI suffered significant delays in implementation due to derailments caused by weakened rails that risked both lives and rOiling stock and disrupted service for several weeks at a time.

This Work Plan is one that necessarily focuses particular attention on the next four months and sketches out only generally the outlines of anticipated project activities after that time. This is because detailed planning of activities in months 5-20 will only take place once the results of the Master Plan Study are available. This document does not presume to anticipate the results of that study, but instead describes how the study will be carried out, who will be involved, what type and form of results will be obtained, and what will done with the information. It also describes the contracting processes we intend to put into place to implement project activities, without yet knowing specifically what those activities will be. We intend to submit a revised and refined Work Plan by the end of July that will provide additional information about the activities to be carried out from that point on.

B. Strategic Challenges and Responses

The overall challenge posed by this project is:

(1) To meet the specific objectives of the cyclone recovery program in a timely fashion. (2) to ensure reasonably reliable train service over the life of the project and (3) to invest in (and leverage others to invest in) infrastructure rehabilitation necessary to attract a serious concessionaire whose future management of the line will contribute to (if not ensure) reliable train service over the medium and long term.

In light of these not insignificant overall challenges, the core project team analyzed the strategiC challenges inherent in implementing this project during the team building held in early March. In this section we summarize some of the key challenges identified and the ways in which the project will respond to these challenges so as to ensure quality results in a timely fashion.

Challenge I: Carry out design and construction services both well and quickly so that the FCE is rehabilitated and stabilized by December 2002.

Responses:

1. This project begins with a profeSSional and systematic study to ensure that funds are spent strategically and so as to have the maximum positive impact.

2. We are developing procedures to spend local funds according to US and Malagasy regulations. Building upon systems already established under LDI, we are working with the ReCAP Roads project to develop sound procedures for spending $2.7 millions in local design and construction contracts. We have met with the CTO and CO to discuss how our contracts need to be adapted to take into account special requirements related to work under an IQC, construction work, and use of second hand equipment. Given the very tight timetables involved, the mission has assured us that they are available to work with us closely to review contract templates, contracts, and related contracting actions in a timely manner

3. We have developed a Fast Track Plan that is based on prior experience with cyclone recovery efforts and the FCE to ensure that no time is lost while more comprehensive studies are taking place.

3 4. The project will, from the outset, pay market rates for the transport of materials and personnel using the FCE. This will ensure that we pay for the wear and tear caused by our activities and provide a part of the revenues the FCE needs to ensure reliable service. Training, supervision, and close monitoring by Fivoarana will ensure that these funds are reinvested in improvements in the system and not diverted to other less productive ends.

Challenge II: Ensure adequate train service over the next 20 months to allow timely deliveries of project materials without any significant deterioration of service to the user public.

Previous analyses of the train line (Fivoarana) have found that three working locomotives are the minimum number required to ensure reliable service on this line. When there are less than three locomotives, delays are inevitable because of load limits on the extremely steep track sections and needs to remove locomotives from service for periodic maintenance. The FCE is now operating two locomotives at less than optimal reliability.

Responses:

1. The Fast Track is currently making necessary repairs to the two locomotives now in service. This involves rehabilitating at least two traction motors in order to ensure that each locomotive has a full allotment of four motors. If funds permit, at least one spare motor will be reconditioned to allow the motors to be put on a regular The rehabilitation ofat least two traction motors will maintenance schedule. Other needed parts significantly increase the reliability of train service and are also being purchased to increase the reduce delays in the delivery ofproject materials. reliability of these locomotives.

2. The Master Plan Study Team will review the issue of locomotives and confirm (or not) that three is the minimum sufficient number. If, as expected, they confirm the need for three locomotives, the study team and project staff will quickly analyze the options for procuring a third locomotive. This may involve rehabilitating the currently non-functional BB 242, renting or buying a locomotive from South Africa, arranging to rent a locomotive from the newly privatized northern line, obtaining a used locomotive through the network of Swiss and French Friends of the FCE, or other options to be proposed by the expert consultants. Because the rolling stock will be the responsibility of the concessionaire after privatization, the primary concern of FCE Rehab will be to ensure the FCE's operationality up until the time it is taken over by a private concessionaire. We will nevertheless analyze various options with an eye to assuring the maximum benefit from whatever limited funds are allocated to rolling stock investments.

3. Under the fast track plan the project will buy a stock of spare parts necessary to get through the first six months of the project until the time when the FCE has saved enough of a repair fund that it can purchase its own spare parts. LDI is financing Fivoarana Consulting to provide management training and assistance to the FCE over the next year and a half. A key element of this management assistance will involve putting systems in place to manage stocks of spare parts and oversight to ensure that money is set aside and that parts are reordered in time.

4. The project will, from the outset, pay market rates for the transport of materials and personnel using the FCE. This will ensure that we pay ofr the wear and tear caused by our activities and

4 provide a part of the revenues the FCE needs to ensure reliable service. Training, supervision, and close monitoring by Fivoarana will ensure that these funds are reinvested in improvements in the system and not diverted to other less productive ends.

Challenge III: Mobilize the maximum support of all stakeholders.

A key strategic challenge in this project is to ensure that each of the parties relevant to its success contributes to its maximum ability. This includes most notably, the FCE (especially for the implementation of activities along the line) and the relevant government authorities (especially for the advancement of the privatization dossier and the recruitment of other interested donors). We are fortunate to start with a substantial capital of good will and strong relations with these partners due to the earlier cyclone rehabilitation work carried out under LDI, as well as the CAP project activities. It is vital that these parties continue to not only support the project, but be integral partners in both decisions and implementation. While we do not have time to waste in non-productive "feel-good" meetings, neither can we afford not to spend the time (and, in some cases, resources) necessary to create and maintain trusting relationships with our FCE partners.

Responses:

1. Establish clear protocols from the outset defining the project's relationship with the FCE. Initial discussions of these protocols have already begun and their finalization will be the next item of priority for project staff once the work plan has been submitted.

2. Hold weekly coordination meetings between the project and FCE staff to establish clear short and medium term goals and responsibilities and to track progress toward those goals.

3. While the vast majority of funds under this project will be spent on physical infrastructures and (less) rolling stock, a small portion of the budget (approximately $10,000) is reserved for activities destined to maintain the motivation and esprit of the FCE employees. This includes, for example, team building and training/workshop opportunities, provision of uniforms for those who have not yet benefited, improvements to work conditions (purchase of safety material, for example) etc. The small investment in such symbolic gestures of solidarity with the people, as well as the infrastructures of the rail system, will reap returns many times greater than the sums invested as the train workers find new motivation to make the system work better.

Challenge IV: Ensure that the Master Plan Study is sufficiently rigorous and robust that it can withstand the scrutiny of potential donors.

This is particularly important in light of Challenge V, which makes the partiCipation of other donors (many of whom have expressed reservations or outright antagonism toward investment in the FCE in the past) imperative. In addition, we must seize this opportunity to engage in strategic planning that maximizes the use of scarce resources and advances beyond the opportunistic and largely ad hoc approach that has characterized many of the recent investments in the FCE.

Responses:

1. We are investing significant resources in the Master Plan study that will involve a rich collaboration between local specialists, who are intimately knowledgeable about the local context, and international experts, who bring not only a broader perspective but also a certain "cachet" that will help give the study needed credibility. This investment should reap significant returns to the extent that it produces a study that meets the highest international standards and is therefore convincing to other donors.

5 2. A hallmark of the Master Plan will be its emphasis on not only identifying rehabilitation needs, but also prioritizing them in order to make strategic and defensible choices about how funds will be invested.

Challenge V: Recruit construction firms capable of completing quality infrastructure rehabilitation work in a timely fashion despite the disproportion between our needs for rapid and significant interventions and the limited number of reputable firms available to do the work.

This challenge will be exacerbated by several factors: (a) the project implementation takes place during a political campaign season when many firms will be busy on politically motivated projects and (b) there is a four month rainy period shortly after the start of activities (December 2000 to March 2001) that will require a moratorium on most construction work.

Responses:

1. The key to meeting this strategic challenge is impeccable planning. We will be strategic about what activities can realistically be undertaken in Implementation Phase I (before December 2001) and which will fall into Implementation Phase II (March to December 2002), after the rains. Planning for Phase II will begin as soon as the Phase I activities are underway in order to reserve contractor time.

2. As we are in the Fast Track, we will continue to use local Fianarantsoa firms for those tasks that do not require heavy machinery or highly sophisticated engineering competence, thereby allowing more technically sophisticated firms to focus on those tasks where their skills are most needed.

Challenge VI: Make the most strategic use of the project's limited intervention funds and figure out how to leverage maximum outside support that contributes to (or at least complements) the Master Plan.

It is clear that the funds available under this project, while making a significant contribution to the FCE's future sustainability, will cover only a fraction of the investment needs of this dilapidated rail system. We will not know how significant a fraction until we have the results of the Master Plan Study. The challenge is to figure out how to leverage other donor and other stakeholder support to ensure results commensurate with the magnitude of the problem.

Responses:

1. Use the skills of Frank West to ensure that we gain the best possible value for the money we invest in rolling stock and rails. We expect to use Frank to identify sources of used but fully functional material at a fraction of the at-new price. He will address his efforts both in Europe and in southern Africa. In the case of rolling stock, this is particularly relevant since as noted above, it is not logical to "over-invest" in rolling stock given that it will become the responsibility of the concessionaire after privatization. The CAP project demonstrated the possibility of obtaining low- cost used rails. During the Fast Track period, Frank has already identified approximately 6 km of free used rail (valued at approximately $60,000) and 2.5 km of reduced price rail that will be available during Europe's summer months. He has possible leads on up to 30 km of rails from a French mining company that may close in the near future. Frank is also seeking out local and international private donors who may be willing to subsidize the transport costs for these materials. Money that is saved in this way will be available for additional infrastructure improvements.

2. In Antananarivo, Jean-Robert Estime will continue to argue the FCE's case in both formal and informal contacts with other donors and projects. We also count on USAID to add its voice in various donor forums, especially those at higher levels where our project staff are not likely to

6 be present. In addition, the formal round table presentations and visits to the line in June will heighten attention on the FCE and the train's role in both poverty reduction and forest conservation in the Fianarantsoa region. 3. In the region we will continue to work with the press, the public, and local authorities to heighten the profile of the FCE. We are working closely with local partners to ensure that the FCE is a priority on the PADR agenda. Local leaders have already expressed an interest in participating in the June Round Table meeting and visit to plead the region's case. In conjunction with LDI's popular Community Volet, which is being managed under the FCE Rehabilitation project, we continue to build the confidence and support of local The project will continue to build supportive populations. Many of our actions will be relationships between train users and the FeE as shown in this photo ofa recent round-table workshop on ways undertaken in collaboration with the ADI­ to improve customer service. FCE and the consortium of mayors in the OPCI. These associations provide important social capital that can be mobilized as needed to put pressure on local authorities and the donor community in support of the FCE. We anticipate including a number of these local leaders on our study visit to the region in June.

4. We are allocating a small part of the project budget ($15,000) to continue (and expand) on activities with local populations that were begun under LDI. These will be used, for example, to fund workshops identifying local communities' role in clearing the tracks after natural disasters and purchasing track clearing tools and supplies needed by partiCipating communities.

C. Program Plan

The FCE Rehabilitation project has already begun its first round of activities as defined in the Fast Track Plan and outlined below. These activities will run concurrent to the Master Plan Study that begins the second week in April. Once the Master Plan Study is completed in June, a revised Work Plan will be submitted that details the primary interventions to be undertaken by the project in light of the Master Plan recommendations.

C.1. Fast Track.

The project will spend approximately $300,000 between April 1 and September 30th on Fast Track activities that are designed primarily 1) to increase the probability that the line will remain open until and during the period of rehabi litation 2) to ensure the safety of passengers and freight transported on the line 3) to put into place systems necessary to efficiently and effectively carry out the work under the rehabilitation project (materials, infrastructure/rails, and management of resources) and 4) to ensure the full benefit of investments that have already been made in the rehabilitating the line.

The Fast Track plan comprises 21 activities, 11 of which are considered Fast Fast track, and will be largely completed in the month of April, and the remaining ten of which will be implemented between May and July. Detailed weekly planning of these activities is taking place between the FCE and the project to ensure their timely implementation. The planning schedule for the Fast Fast track is attached in Annex 1.

7 Most of the work that does not require particular railroad competence is being contracted out to local Fianarantsoa contracting firms. This includes, for example, cleaning of drainage ditches and compacting of slopes, which are essentially similar to work carried out by road maintenance and construction crews. Other work that requires specific railroad competence (e.g. track laying and locomotive repair) is being carried out by the FeE crews. This work, too, is being done on a contract basis to ensure the timely completion of the activities.

Before and after photos of the FeE moto-Iorry. Three moto-Iorries are being rehabilitated during the Fast Track and will be used primarily to supervise rehabilitation work along the line.

8 C.2. Master Plan Study

The Master Plan Study is a key element of the rehabilitation program since it will allow strategic decisions to be made about the most effective use of funds based on analyses conducted by the best available international and Malagasy infrastructure and rail specialists.

The Study Team. The study team will be composed of internationally and nationally renowned rail specialists. The team will be directed by H Schar, planning consultant, and Gilles Rasoamanana, Technical Director for the project. The international engineers are Mr. Phillipe Martin, a specialist in infrastructure projects who served as the structural engineer for the SNCF in Paris, and Mr. Louis Venault, a specialist in rail engineering. The international consultants will work in conjunction with a Malagasy Engineering Firm that will provide specialists in: rail platform and superstructures, bridges, tunnels, embankments, watersheds, and rolling stock. The team will also include at least one person with responsibility for carrying out the environmental impact assessment as required by Malagasy law. Offers are currently being tendered for this firm and the finalist will be selected the week of April 1st and be ready to begin work on the study by April 1ih.

The Schedule. The study will roughly follow the timeline proposed here, although there may be adjustments once the final offer is received and all the team members begin working together. Week 1 (April 17-22): Preliminary work in Fianarantsoa and familiarization with background materials Weeks 2 and 3 (April 23-May 6): Study of the entire train line by various specialists working independently and in collaboration Weeks 3 and 4 (May 7-20): Team works on proposed solutions Weeks 5 and 6 (May 21-June 3): Presentation and refinement of solutions Weeks 7 and 8 (June 3-June 16): Preparation of final findings, including detailed project plans for those infrastructures and activities deemed priority June 13 Presentation to US Embassy and USAID Mission June 15: Donor Round Table Conference June 18: Donor visitto line

The Expected Results. The Terms of Reference for the Master Plan Study are attached in Appendix 2. The results of this study will be a complete analysis of the infrastructures and rolling stock of the FCE system. The infrastructure analysis will take a long-term view, looking at investments that should be made in order to ensure the viability of the system for at least the next 20 to 30 years. These investments will be prioritized in order of urgency and importance in order to guide the most effective use of donor resources. The rolling stock analysis will take a much shorter perspective, looking primarily at investments needed to maintain adequate train service over the next two years. This is because any concession arrangement is almost certain to put the rolling stock under private management. It is virtually certain, however, that the Master Plan will involve some not insignificant investments in rolling stock and, especially, in a third locomotive that is needed to maintain reliable service on the line in the short and medium term. The plan will help the project to determine the most cost-effective investments, especially given the relatively short time horizon.

The study team, and especially the Engineering Firm, will prepare "APD" or detailed project plans for each of the priority investments that are recommended. These detailed project plans will be available to other donors who are interested in contributing resources to FCE rehabilitation and will significantly reduce the time needed to tender bids for the work since the bulk of the technical studies will have already been completed.

The study will include an environmental impact assessment as required under Malagasy law. This is not expected to be a problem since all previous studies have commended the railroad for its positive impact on the Fianarantsoa environment but any negative findings will be taken seriously and addressed during the implementation phase.

Presentation of the Results. The results of the Master Plan study will be submitted during a donor th round table meeting on June 15 • Key participants in this meeting include the World Bank, European Union, French, British, and Japanese aid organizations, as well as key private interests such as Tiko, the Sahambavy tea plantation, potential Mauritian business interests, and COMAZAR. Key donors will be contacted well in advance of the meeting to explore their interest and possible commitments.

9 The Round Table will be complemented by a visit to the line for interested parties. It is expected that this visit will take place on Monday, June 18. A plane will be chartered on the day of the visit to fly dignitaries to Fianarantsoa, where they will be met by a special train and taken on a guided visit of the line, with explanations along the way of the FCE's importance to poverty reduction and the environmental dynamic of the Fianarantsoa region. The dignitaries will be flown back to Tana later the same afternoon from either or Fianarantsoa. Local Fianarantsoa authorities will also participate in the visit to underline the regional importance of the line and local support for its rehabilitation and eventual privatization.

O. Rehabilitation Schedule

01. Implementation Phase I. Once the priorities are established by the Master Plan Study, the project will define which of the priority investments are to be funded under the project during Implementation Phase I. Offers for this work will be tendered by July 15th and bids are expected back by mid August so that the firms can be selected before the end of August. The first round of infrastructure rehabilitation is expected to begin no later than 3 September and continue until the heavy rains begin in mid December.

02. Implementation Phase II. A second round of offers will be tendered in December, with bids due in January and the firms selected in February to begin work in March. These rehabilitation activities will continue until the end of November 2002, so as to complete work no later than December 5, which is the project termination date.

The following is a list of infrastructures that are likely candidates for rehabilitation, though the list is neither definitive nor limiting:

Cement Bridge, PK 19+200 Tunnel, PK 43+ 100 Tunnel, PK 71 +900 Tunnel, PK 81+500 Metal Bridge, PK 85+900 Reinforced concrete viaduct, PK 90+050 Drainage channels, PK 108+000 Retaining wall, between PK 108+200 and 108+400 Dalot et fosses d'assainissemnt situes au PK 109+000 Retaining wall, between PK 109+400 and 109+700 Drainage channels, PK 109+800 Retaining wall between PK 109+900 and 112+200 Tunnel, PK 121+100 Masonery viaduct, PK 121+800 Tunnel, PK 124+050

E. Project Staff and Organization

The FCE Rehabilitation project comprises a small staff in Tana including Chief of Party (10%), Financial and Administrative Director (50%), and full time project accountant and logistics assistant. The majority of personnel are based in Fianarantsoa where the staff comprises the Regional Director, Regional Financial and Administrative officer, Contracts/Logistics Officer, Technical Director, 3 Supervising Engineers, vetiver specialist, and support staff.

10 ANTANANARIVO

Chief of Party (10%) Financial and Administrative Director (50%)

Accountant Logistics Assistant

Driver

FIANARANTSOA

Regional Director I II I I Technical Administrative Director officer

;' ;' ;' ;' I ;' I I ;' Admin. Contracts! Assistant .",-==;,,;v~e~t=iv~e~r snecialist=n-E=n=gI=· n=e=er=!!!!J I Engin= I Engin"" Materials I I I I I Office guards Receptionist chauffeur cleaner and

F. Monitoring and Evaluation

F1. Monitoring. Due to the very short time horizon of this project, monitoring will be an ongoing part of each activity to ensure that there are not delays and that problems are identified and addressed quickly. In addition to on-site supervision, each contract, whether with a private firm or with the FeE (for track laying, for example) will be followed by one of the three project engineers who is expected to make at least a bi-weekly visit to the work site. At each visit he will fill out a monitoring form which documents progress toward contract objectives, any specific problems or deficiencies encountered during the visit, actions required of the contractor, and recommended follow-up. These monitoring forms will provide a permanent implementation record for the project files. Quarterly reports will be submitted to USAID and will summarize the information from the monitoring forms as well as other progress or problems encountered during that quarter.

11 F2. Evaluation. Given the short and intensive character of the project, it is expected that there will only be two evaluation periods. The first will take place during the early part of the rainy season (December 2001 to January 2002) when there will be a lull in implementation and the chance to review the first round of contracts. During this evaluation we will systematically look at the work that was accomplished and the contracting process. The purpose of this assessment will be to identify ways to improve and streamline the process during the second implementation phase (March to December 2002). The second evaluation will take place at the end of the project. Because the rains begin in December, we anticipate already that work will take place until the very end date of the project (December 5). We would hope not to have to be distracted by evaluations and report writing during that period and it is therefore highly likely that we will request a 30 day no-cost extension in order to complete final project reports.

G. BUDGET

The project budget allocates $2.7 for the rehabilitation fund that will be used for infrastructure repair, investment in rolling stock, and ancillary activities to be determined by the Master Plan Study. Details of how these funds will be allocated will be presented in the revised work plan to be submitted in July 2001. A procedures manual for the expenditure of funds under $100,000 is now under development. Contracts exceeding $100,000 will be submitted to USAID for approval. We will carefully review the recommendations of the Master Plan Study and the donor conference and may propose a modest reallocation of funds to transfer more money into the rehabilitation fund should this appear to be the most effective and strategic use of resources as the project progresses.

12 Appendices

1. Fast Track I Implementation Plan

II. Terms of Reference Master Plan Study Team

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14 FAST FAST TRACK: April 2001

Task Work Mode $ FMG Observations thousa millions nd 1.1 Rehabilitate at least two Send to The FCE needs 3 working locomotives in electric drive motors France or 90 585 order to be financially viable in the short and (moteurs de traction) South Africa medium term and to transport local freight depending and materials during the life of this project. on prices Each locomotive needs 4 drive motors. The BB 242 is not currently functional because it lacks sufficient drive motors. The others either have insufficient power or vulnerable to being taken out of service when the motors have to be repaired, which usually takes a week. We propose under the Fast Track to rehabilitate at least 2 and, if possible, 3 motors so as to ensure 2 well functioning locomotives and, 1 reserve to allow for repairs. A decision on whether to repair or replace BB242 will be determined by the Master Plan Study. This calculation is based on $30,000 to repair each traction motor and 3 million round trip to Europe for transport per motor. It may be possible to do this more cheaply in South Africa. 1.2 Completion of 20 km of Local 36.9 240 This work was begun under the LDI cyclone drainage ditch clearing contractors activities but was not completed because using local the task turned out to be much more labor ambitious than initially anticipated due to the discovery of significant buried infrastructure. Effective drainage systems are key to maintaining the line in operation, particularly during heavy rains. The areas to be cleared are: PK 92 (2.7km), PK 103 (2.9 km), PK 79 (10 km) PK 72 (4.4 km) 1.3 Complete work on Local 20.0 130 Begun under the LDI intervention, this year's "Points Noirs" (PK contractors heavy rains caused some erosion in areas 46,75,75bis, 80). using local that had not fully stabilized. The principal labor task is reconstruction of maconnery infrastructures. 1.4 Rehabilitation of 11/21 Local 11.8 77 There are 21 smaller infrastructures that smaller infrastructures contractors require rehabilitation (most of drainage using local channels) It is estimated that about half will labor be completed under the Fast Fast Track and half under the Fast Track. Rehabilitation will take place at: PK 42, 44, 44,45,45,46,47,54,109,120,121. 1.5 Installation of parallel FCE staff 4.6 30 A second, parallel track to enable trains to side track where needed pass at stations will be installed at 5 stations where there is only one track. This is needed in order to avoid delays because of the much higher track use (transport of materials, supervision) during the project period. The stations affected are: Volohosy, lohilahy, Mahabako, , Mizilo.

15 1.6 Rehabilitate bulldozer FCE staff 3.8 25 It is essential that the FCE has well No. 10 and draisine operating draisine (for visit to work sites) and bulldozer (for ensuring line reopens rapidly after landslides). When these machines do not work, there are needless delays in the transport of people and materials to work sites. The project philosophy is to ensure that such vital equipment is in top working order at the start of our interventions. We will then pay commercial rates for transport and expect (with monitoring under LDI's management reinforcement activities) that the FCE will henceforth maintain the equipment and buy Iparts from its own revenues. 1.7 Work security clothes 3.1 20 Purchase of gloves, work boots, helmets, and materials soldering glasses and aprons for 18 brigade workers and 2 soldering agents. 1.8 fuel pump 3.1 20 Purchase and inspection of a rehabilitated fuel pump to ensure clean fuel and avoid excessive repair costs for locomotives and draisines. Many of the high repair costs are caused by impurities in the fuel, which also leads to numerous breakdowns. This pump will enable the use of underground cisterns, which in turn allow the decantation of fuel and higher assurances of purity. 1.9 Rehabilitation of two FCE staff 0.8 5 The rehabilitation of these wagons will mean draisine flatbed wagon that the draisine can carry materials and equipment (ties, ballast) when it travels to work sites. This will reduce delays in getting materials to the field and make more cost- effective use of the draisines. 1.10 Transport of materials 0.9 6 3 truckloads of materials have been made from RNCFM available to the FCE due to the privatization of RNCFM. These include traction motors, spare parts and other equipment. These funds will be used to rent three 10 ton trucks to transport the materials to Fianarantsoa before they are taken over by the concessionaire. TOTAL Fast Fast Track 175.1 1,138

16 FAST TRACK: May to July 2001

Task Work Mode $ FMG Observations thou millions sand s 2.1 Completion of 20 km Local 36.9 240 See FT2.1: PK27, 38, 11, 50, 59. of drainage ditch contractors clearing 2.2 Installation of Swiss FCE Rail laying 9.2 60 These are rails earlier provided by the Swiss that will Rails team be laid on 7 km of vulnerable track on the falaise near (PK 59-66) and in key tunnels (PK 121 and 42). The cost is primarily for indemnities and ballast. 2.3 Purchase of materials Direct material 7.7 50 Tools required by the brigades responsible for track for track layinq support layinq and the maintenance of the line. 2.4 Rehabilitation of Local 10.8 70 See FT2.3: PK 7,68, 68, 71, 71, 72, 75, 76, 87. 10/21 small contractors i nfrastructu res 2.5 Spare parts for Direct material 38.5 250 Analyses of the 2 locomotives have identified spare locomotives support parts (in addition to the drive motors) needed to keep the locomotives running smoothly. The required parts for the first six months have been calculated. At that, it is estimated that FCE revenues from regular traffic and transport of project materials will be sufficient that the FCE can maintain its own spare parts supply. Electrical parts: 100m Fmg, Diesel motor parts: 80m Fmg, Brakes and boggie parts: 70 m Fmg 2.6 Purchase of tubing Direct material 4.6 30 Needed to break rock masses that risk blocking the and parts for a support rails during landslides compressor 2.7 Refurbishment of the Direct Material 1.5 10 The crane is needed to repair heavy equipment such FCE loading crane support as the drive motors. It will also be useful if contractors wish to use containers for the transport of materials to work sites. 2.8 Rehabilitation of 4 FCE/Direct 1.8 12 These wagons will be used for teams supervising the wagons logements material support work in the field. Main costs are for mattresses and paint. 2.9 Rehabilitation of 1 FCE/Direct 1.5 10 This vehicle is needed for quick access to problem 4x4 FCE vehicle material support sites, especially when there are derailments or other disruptions to rail service. The diesel motor needs an overhaul. 2.10 Rehabilitation of 3 FCE 4.6 30 Mot%rries are the most effective form of transport for motolorries supervisory activities since they are fast and cost effective. Adding three motolorries to the park is justified by the multiple and simultaneous activities to be carried out under the project and the importance of adequate supervision to assure satisfactory results. Most of the funds will be used to purchase reconditioned 4L motors. 2.11 Construction of 15 FCE 7.7 50 These small push carts will be used to clear debris wagonnettes from landslide areas by local brigades and villagers. They will make these teams more effective and reduce the chance of future landslides by moving dirt away from the problem site. TOTAL Fast Track 124. 812 9 Total Fast Fast 175. 1,138 Track 1 Total Fast Track 124. 812 9 Total FFT and FT 300 1,950

17 Chemonics International

PROJET "FCE Rehabilitation"

BP 1187 Fianarantsoa 301 Madagascar

DRAFT (April 3, 2001)

TERMES DE REFERENCE

de I'equipe chargee des etudes techniques sur la rehabilitation de la ligne ferroviaire Fianarantsoa-Cote Est (Iigne F.C.E.)

18 SOMMAIRE

1.- Introduction

2.- Objectifs

3.- Deroulement des etudes et travaux

4.- Consistance de I'equipe et taches confiees a chaque intervenant

5.- Calendrier previsionnel des activites

6.- Appuis logistiques

7.- Budget

19 1.- INTRODUCTION

Suite a la mise en cause de la rentabilite de I'exploitation de la liaison ferroviaire Fianarantsoa-Cote Est (ou ligne F.C.E.), et compte-tenu des enjeux socio-economiques et environnementaux lies au fonctionnement de cette ligne, I'USAID est intervenu depuis 1996 en financant etudes et travaux dans Ie but de contribuer a la rehabilitation de cette liaison ferroviaire.

C'est ainsi qu'un programme d'urgence, visant a rendre a la ligne FCE une capacite operationnelle principalement par la remise en etat des materiels et des infrastructures ferroviaires et par la fourniture d'appuis en matiere organisationnelle, administrative et commerciale, a ete mis sur pied.

La realis'ation de ce programme d'urgence en 1998-1999 n'a pourtant pas engendre les impacts attendus, suite notamment aux degats subis par une grande partie de I'infrastructure sur cette ligne lors du passage des cyclones "Eline" et "Gloria" en Fevrier/Mars 2000. Une remise en etat d'urgence de cette infrastructure a ete faite pour permettre la re-ouverture de la ligne FCE a la circulation des trains a partir du 01 Juin 2000, apres trois mois de fermeture totale.

Des confortements et ameliorations des premiers travaux effectues ont, par la suite, ete programmes. Mais, malgre to utes ces dispositions, la situation globale de I'exploitation de la ligne FCE reste encore tres precaire. D'ol! Ie projet de mettre sur pied un programme de rehabilitation de plus grande envergure et de plus grande consistance. Une partie de ce programme sera finance par un credit octoye par I'USAID.

Le present document vise a preciser les modalites d'execution des etudes et travaux a prevoir dans Ie cadre de ce projet de rehabilitation a financer par Ie credit USAID sus-mentionne.

2.- OBJECTIFS

L'objectif principal du projet de rehabilitation de la ligne FCE est d'assurer I'exploitation norma Ie, c'est a dire conformement aux standards normalement admis en matiere de transport par chemin de fer. L'objectif de I'etude technique est d'identifier les principaux causes du non fonctionnement, de proposer les solutions aces problemes, et de prioriser les interventions preconisees en fonction de leur urgence et importance. Ce dernier, la priorisation des investissement preconisees et d'une importance primordiale. C'est priorisation devrait prendre en compte I'urgence (et les risques si on n'intervient pas), I'importance, les questions pratiques comme la possibilite de faire la rehabilitation dans un periode court avant les pluies, etc.

L'etude vise donc a identifier tous les pOints faibles, en ce qui concerne les infrastructures, les rails, et les materiels roulants, et les actions a entreprendre pour que I'exploitation de la ligne FCE se fasse de maniere permanente quel que so it Ie temps et dans des conditions de qualite et de fiabilite normales. 1/ sera tenu compte, lors des etudes et travaux, des sujetions particulieres ci-apres relatives a I'exploitation de cette ligne, a savoir :

sa vetuste (I'ensemble de I'infrastructure a plus de 60 ans d'age, avec des conditions de maintenance souvent limites) ;

la topographie difficile des regions traversees (chemin de fer de montagne, d'ol! un trace tres sineux et tres escarpe, et la necessite de construire de nombreux ouvrages : ponts, tunnels, remblais et deblais importants, ... ) ;

la nature geologique et geotechnique des sols existants (sols souvent de type argilo-sableux ou de type lateritique, donc de tres faible stabilite et de tres faible portance en cas de saturation par les eaux) ;

les conditions climatiques de la region (zone tres humide et sujet a de frequents passages de cyclones tropicaux lors de la saison des pluies, c'est a dire du mois d'Octobre au mois de Mars) ;

20 I'environnement global des regions traversees (environnement caracterise par un important taux de deforestation et une occupation non reglementee des terroirs entrainant des modifications souvent nefastes des regimes hydrauliques et hydrologiques) .

3.- DEROULEMENT DES ETUDES ET TRAVAUX

Pour realiser I'ensemble des actions a entreprendre au vu des objectifs et des contraintes sus­ mentionnes, il est prevu de faire appel a une equipe pluri-disciplinaire composee

d'une part, dans Ie mesure du possible, d'ingenieurs etlou specialistes malagasy, regroupes au sein d'un bureau d'etudes, pour tirer profit au maximum de competences locales;

d'autre part, d'experts expatries dont les competences et les experiences acquises tout au long de leurs carrieres permettent d'optimiser la qualite des expertises et etudes prevues. Ces experts expatries joueront Ie role d"'ingenieurs-consei/s de haut niveau'. Leurs interventions seront determinantes surtout lors des etudes techniques et conception de solutions.

Les differentes phases d'activites a prevoir dans Ie projet seront les suivantes :

Phase 1 : Prise en connaissance de I'ensemble de la documentation existante (et premier parcours rapide de I'ensemble de la ligne, si besoin est), pour avoir une meilleure appreciation, au prealable, des etudes a accomplir - mise au point de la methodologie d'approche et du programme detaille de travail ;

Phase 2 : Expertise en profondeur de I'ensemble des composants de I'infrastructure (rails et autres elements de la superstructure, ponts et viaducs, tunnels et galeries, remblais, deblais, bassins versants en vue du redimentionnement eventuel des petits ouvrages de drainage et d'assainissement de la plateforme, environnement global des zones en vue de I'etude de I'impact environnemental du projet). Cette phase 2, a instrumenter, Ie cas echeant, a pour objet d'avoir une connaissance precise et approfondie des divers problemes techniques rencontres au niveau de I'infrastructure ;

Phase 3 : Etudes en vue de la mise au point des solutions preconisees pour les divers problemes techniques rencontres lors de I'expertise, I'objectif global etant que I'ensemble de I'infrastructure ait un niveau de qualite et de fiabilite normalement admis. La realisation de cette phase 3 sera concretisee par la remise d'un dossier d'avant-projet detaille (APD) dans lequel seront explicites, par action preconisee

Ie descriptif de la solution technique proposee ; les calculs justificatifs necessaires ; les plans requis ; les metres et devis estimatifs ; I'ordre de priorite ; Ie planning previsionnel d'execution.

Phase 4 : Mise en forme de ce dossier d'avant-projetdetaille en vue de sa presentation a un forum de bailleurs de fonds et autres organismes interesses. Cette presentation a pour but

d'une part, de solliciter la participation des autres bailleurs de fonds et autres organismes interesses dans la prise en charge d'une partie des investissements requis ;

d'autre part, d'identifier la partie du programme propose dont I'execution est a prevoir sur la peri ode 2001-2002 et dont Ie financement sera assure par Ie credit octroye par I'USAID (de I'ordre de $ 2.7 millions).

Phase 5: Apres identification de la partie du programme a financer par Ie credit USAID, mise au point du dossier d'appeJ d'offres (DAO) en vue de la consultation des entreprises susceptibles d'executer les travaux prevus.

21 Ces taches prevues de la phase 1 a la phase 5 constituent ce qui est denomme phase "desigrl' dans Ie projet.

4.- CONSISTANCE DE I'EQUIPE ET TACHES CONFIEES A CHAQUE INTERVENANT

L'equipe charge de la realisation des prestations sus-mentionnees devra normalement com prendre

01 specialiste en superstructure ferroviaire (rails, traverses, attaches, soudure de jOints, ballast, capacite portante de la plateforme, ... ). Ce specialiste sera charge de I'identification de to utes les actions a entreprendre au niveau "voie' pour repondre notamment aux objectifs de qualite et de securite dans la circulation des trains;

01 specialiste en expertise de ponts et viaducs et, plus generalement d'ouvrages en mac;onnerie et en beton arme. Ce specialiste sera charge de I'expertise des fondations, piles et tabliers des ouvrages en vue de I'appreciation de leurs etats, leurs capacites portantes actuelles et leurs probables durees de vie residuelles. II est a noter que des releves du nivellement longitudinal et de I'alignement transversal ainsi que des essais de charge etlou des sondages de fondations peuvent etre necessaires, dans certains cas. Les ouvrages expertises seront classees en 05 categories (ouvrages en tres bon etat, ouvrages en bon etat, ouvrages dans un etat passable, ouvrages en mauvais etat et, finalement, ouvrages en tres mauvais etat) ;

01 specialiste en tunnels et galeries et, plus generalement, en ouvrages souterrains. Les avaries constatees sur ces ouvrages sont, pour la plupart, des dejointoiements et des fissures dans les revetements en mac;onnerie. Comme dans Ie cas des ponts, il peut s'averer necessaire d'avoir recours a des releves topographiques etlou a des sondages ponctuels pour mieux apprecier I'etat general, les eventuelles deformations et Ie degre de stabilite de ces ouvrages. Le classement des ouvrages expertises sera analogue a celui preconise pour les ponts et viaducs ;

01 specialiste en ouvrages en terre (remblais et deblais). Ce specialiste, qui normalement devrait etre un geotechnicien, sera charge de I'appreciation de la stabilite des talus des remblais et deblais importants, en fonction notamment de leurs profils, des caracteristiques techniques des sols existants et d'autres facteurs a identifier cas par cas;

01 specialiste en analyse de bassins versants pour bien apprecier les conditions de ruissellement sur ces bassins versants et les debits a evacuer, en consequence, par les ouvrages de drainage et d'assainissement de la plateforme. Ceci permettra notamment de revoir Ie fonctionnement global de ces ouvrages et de redimentionner, Ie cas echeant, ceux reconnus de trop faible section

01 mecanicien specialiste en maintenance de materiels ferroviaires et engins de chantier (locomotives, wagons-service, draisnes, motolorriers, bulldozers, outillages mecanises pour travaux de voie, ... ). Ce specialiste identifiera les mesuresa prendre pour assurer

. d'une part, que I'ensemble du parc roulant necessaire pour une exploitation normale de Ie ligne FCE soit en bon etat de fonctionnement surtout pendant les prochaines deux ans jusqu'a. la privatisation de la ligne ;

d'autre part, que les materiels requis lors de I'execution des travaux de rehabilitation soient toujours disponibles et ne geme pas Ie transport "normal" ;

01 specialiste en etude de I'impact sur I'environnement du projet. Ce specialiste sera charge notamment de definir I'etat initial des zones traversees, I'impact eventuel de I'amelioration des conditions de transport sur I'environnement, aussi bien que les eventuels effets nefastes des actions de rehabilition sur I'environnement limitrophe (ex: utilisation des machines lourdes). II proposera, au vu de to utes ces donnees, les mesures d'attenuation a prendre. Son rapport

22 devrait repondre aux exigences des etudes d'impact environnemental definies par Ie Ministere de I'environnement.

Tous ces specialistes devraient normalement avoir un niveau de connaissance et/ou de competence equivalent a, au moins, celui d'un ingenieur. Le specialiste en infrastructure et Ie specialiste en maintenance de materiels ferroviaires seront normalement des ingenieurs ayant travaille ou travaillant actuellement au Reseau National des Chemins de Fer Malagasy (R.N.C.F.M). Certaines des autres competences pourront etre trouvees au sein de cette meme Societe.

5.- CALENDRIER PREVISIONNEL DES ACTIVITES

A.- Le calendrier previsionnel de la phase "desigri' du projet est Ie suivant :

5.1.- Demarrage des etudes Ie mardi 17 Avril 2001 ;

5.2.- Semaine du 17 Avril au 22 Avril 2001 (01 semaine) Travaux prealables a Fianarantsoa (prise en connaissance des documents existants, mise au point de la methodologie d'approche, mise au point du programme de travail) ;

5.3.- Semaines du 23 Avril au 13 Mai 2001 (03 semaines) Expertise detaillee de I'ensemble de I'infrastructure sur la ligne FCE ;

5.4.- Semaines du 14 Mai au 27 Mai 2001 (02 semaines) Etudes et mise au point des solutions techniques proposees, au vu des problemes identifies lors des expertises en ligne ;

5.5.- Semaines du 28 Mai au 10 Juin 2001 (02 semaines) Presentation des resultats des etudes et revue et/ou ameliorations eventuelles du projet Premiere presentation a Fianarantsoa Ie lundi 28 Mai 2001 Seconde presentation a Fianarantsoa (ou a Antananarivo) Ie lundi 04 Juin 2001 Troisieme presentation a Antananarivo Ie vendredi 08 Juin 2001

5.6.- Semaine du 11 Juin au 17 Juin 2001 (01 semaine) Remise de I'avant-projet detaille et des autres documents requis pour la presentation aux bailleurs de fonds Ie lundi 11 Juin 2001 ; Preparatifs divers en vue de cette presentation du 11 Juin au 14 Juin 2001 ; Presentation de I'avant-projet detaille au forum des bailleurs de fonds et autres organismes interesses Ie vendredi 15 Juin 2001.

5.7.- Semaines du 18 Juin au 15 Juillet 2001 (04 semaines) Mise au point du programme a executer sur la periode 2001-2002 et a financer par Ie credit USAID, puis etablissement du dossier d'appel d'offres (DAO) ; Remise du dossier d'appel d'offres Ie jeudi 12 Juillet 2001.

6.- APPUIS LOGISTIQUES

La ligne FCE assurera la mise a disposition des divers intervenants du projet du personnel necessaire lors des expertises en ligne (agents connaissant bien I'historique ainsi que I'etat actuel des divers composants de I'infrastructure devant faire I'objet d'expertises approfondies).

La ligne FCE assurera, d'autre part, la disponibilite des moyens de locomotion necessaires (draisines de chantier et/ou motolorries), ainsi que du personnel de conduite de ces materiels lors des travaux d'expertise, et lors des eventuelles autres deplacements necessaires sur la ligne FCE dans Ie cadre des activites de I'ensemble des intervenants du projet. Les frais de deplacement et de I'utilisation de ces moyens de locomotion seront payes par Ie projet.

23 7.- BUDGET

Le financement de I'ensemble des prestations prevues est assure par Ie credit prevu a cet eftet du projet "FCE Rehabilitation" octroye par I'USAID et dont la gestion est confiee a Chemonics International.

24