AFRICAN DEVELOPMENT BANK GROUP COTE D'IVOIRE PROJECT TO UPGRADE ACCESS ROADS TO BORDER AREAS PHASE 1 - Public Disclosure Authorized BONDOUKOU-SOKO-GHANA BORDER SEGMENT RDGW/PICU/PGCL DEPARTMENTS December 2018 Translated Document Public DisclosurePublic Authorized TABLE OF CONTENTS 1 STRATEGIC THRUST AND RATIONALE ................................................................................ 1 1.1 Project Background ................................................................................................................................... 1 1.2 Project Linkage with Regional and National Strategies and Objectives ................................................... 1 1.3 Key Development Issues ........................................................................................................................... 2 1.4 Rationale for the Bank’s Involvement ...................................................................................................... 2 1.5 Donor Coordination .................................................................................................................................. 3 2 PROJECT DESCRIPTION ............................................................................................................ 3 2.1 Project Objectives and Components ......................................................................................................... 3 2.2 Project Type .............................................................................................................................................. 4 2.3 Estimated Costs and Financing Mechanism Project Phase Phase 1 .......................................................... 4 2.4 Project Area and Beneficiaries .................................................................................................................. 6 2.5 Participatory Approach to Project Identification, Design and Implementation ........................................ 7 2.6 Bank Group Experience and Lessons Reflected in Project Design ........................................................... 8 2.7 Key Performance Indicators ...................................................................................................................... 8 3 FEASIBILITY OF THE PROJECT .............................................................................................. 9 3.1 Economic and Financial Performance ....................................................................................................... 9 3.2 Environmental and SociaL Impact ............................................................................................................ 9 4 IMPLEMENTATION .................................................................................................................... 13 4.1 Implementation Arrangements .................................................................................................................13 4.2 Monitoring/Evaluation .............................................................................................................................15 4.3 Governance ..............................................................................................................................................15 4.4 Sustainability ............................................................................................................................................16 4.5 Risk Management ....................................................................................................................................17 4.6 Knowledge Building ................................................................................................................................18 5 LEGAL FRAMEWORK ............................................................................................................... 18 5.1 Legal Instrument ......................................................................................................................................18 5.2 Conditions Associated with the Bank’s Intervention ...............................................................................18 5.3 Compliance with Bank Policies ...............................................................................................................19 6 RECOMMENDATION ................................................................................................................. 19 ANNEX I: COMPARATIVE SOCIOECONOMIC INDICATORS OF CÔTE D'IVOIRE ANNEX II: TABLE OF THE BANK'S PORTFOLIO IN CÔTE D'IVOIRE ANNEX III: MAIN RELATED PROJECTS FINANCED BY THE BANK AND OTHER DEVELOPMENT PARTNERS IN CÔTE D'IVOIRE ANNEX IV: MAP OF THE PROJECT AREA LIST OF TABLES N TITLE Page Table 2.1 – All Project Components ..................................................................................................................................................... 3 Table 2.2 – Alternative Solutions Considered and Reasons for Rejection............................................................................................. 4 Table 2.3 – Project Phase 1 Components .............................................................................................................................................. 4 Table 2.4 – Cost Estimates for Project Phase 1……..…………………………………………………………………………………..5 Table 2.5 – Sources of Financing for Project Phase 1…………………………………………………………………………………..6 Table 2.6 – Cost by Expenditure Category for Project Phase 1 ............................................................................................................. 6 Table 2.7 – Expenditure Schedule per Component for Project Phase 1 (in UA million) ....................................................................... 6 Table 2.8 – Expenditure Schedule per Financing Source for Project Phase 1 (in UA million) ............................................................. 6 Table 3.1 – Summary of the Economic Analysis .................................................................................................................................. 9 Table 4.1 – Project Monitoring and Supervision Schedule ................................................................................................................. 16 Currency Equivalents August 2018 UA 1 = USD 1.405 UA 1 = EUR 1.197 UA 1 = CFAF 785.220 Fiscal Year 1 January – 31 December Weights and Measures 1 metric ton = 2204 pounds 1 metre (m) = 3.28 feet 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.62 mile 1 hectare (ha) = 2.471 acres Acronyms and Abbreviations AFD : French Development Fund AADT : Annual average daily traffic ADF : African Development Fund AfDB : African Development Bank Group AGEPE : National Studies and Employment Promotion Agency AGEROUTE : Road Works Agency APD : Detailed design APS Summary design CI : Côte d'Ivoire COMOREX : External Resources Mobilisation Committee CPW : Construction and public works sector CSP : Country Strategy Paper DGSCA : Directorate General for Strategy and Aid Coordination DPA : Direct project area DPS : Delegated Project Supervisor EA : Executing Agency ECOWAS : Economic Community of West African States ENSETE : National Survey on the Employment and Child Labour Situation EPA : Extended project area ESIA : Environmental and Social Impact Assessment ESMP : Environmental and Social Management Plan EU : European Union GDP : Gross domestic product HDI : Human Development Index HDM-4 : Highways Development and Maintenance Version 4 ILO : International Labour Organisation INS-CI : National Institute of Statistics - Côte d'Ivoire IRI : International Roughness Index IRR : Internal rate of return IsDB : Islamic Development Bank JICA : Japan International Cooperation Agency (JICA) MCA : Millennium Challenge Account MEER : Ministry of Infrastructure and Road Maintenance MPD : Ministry of Planning and Development i NPV : Net present value OSER : Road Safety Authority PAA : Abidjan Autonomous Port PCJ : Juxtaposed border post PND : National Development Plan PNE : National Employment Policy PRSP : Poverty Reduction Strategy Paper TFP : Technical and financial partners TYS Ten-Year Strategy (of the Bank) UA : Unit of Account UNDB : United Nations Development Business USD : United States dollar UTA : Agricultural Processing Unit VAT : Value-added tax Veh/d : Vehicles per day VOC : Vehicle operation cost WAEMU : West African Economic and Monetary Union ii PROJECT INFORMATION SHEET Client Information Donee/Borrower : Republic of Côte d’Ivoire Project Area : Gontougo Prefecture Executing Agencies: Ministry of Infrastructure and Road Maintenance (MEER) through the Roads Management Agency (AGEROUTE) Financing Plan Amount Amount (in CFAF Amounts Source (in UA million) million) (in EUR million) Instrument % ADB LOAN 8.72 6 845.96 10.44 Project loan 34.46% ADF LOAN 11.00 8 637.42 13.17 Project loan 43.48% Govt. of Côte d'Ivoire 5.58 4 382.69 6.68 BCI 22.06% TOTAL 25.30 19 866.07 30.29 100.00% Key ADB Financial Information Loan currency: EURO (EUR) Type of Loan: Fully flexible loan Maturity: 25 years, including the grace period Grace period: 8 years Weighted average To be determined (depending on the depreciation profile) maturity:** Reimbursements: On 15th May and 15th November (half-yearly consecutive payments after the grace period) Interest rate: Base rate + Funding margin + Lending spread + Maturity premium Base rate: Floating (EURIBOR EUR - 6 months, to be determined again on the applicable review date), with a free-floating base rate option Financing cost margin: The Bank’s