AFRICAN DEVELOPMENT BANK GROUP MULTINATIONAL Public Disclosure Authorized MANO RIVER UNION: LIBERIA-COTE D’IVOIRE: ROAD DEVELOPMENT AND TRANSPORT FACILITATION PROGRAMME - PHASE 2 PICU/RDGW DEPARTMENTS September 2018 Public DisclosurePublic Authorized TABLE OF CONTENTS I. Strategic Thrust and Rationale ................................................................................................ 1 1.1 Programme Linkages with National and Regional Strategies ...................................... 1 1.2 Rationale for Bank's Involvement ……...……………………………………………2 1.3 Donors Coordination .................................................................................................... 2 II. Programme Description.......................................................................................................... 3 2.1 Programme Objectives and Components ..................................................................... 3 2.2 Technical Solutions Adopted and Alternative Solutions Considered .......................... 4 2.3 Programme Type……………………………………………………………………..5 2.4 Programme Cost and Financing arrangement .............................................................. 5 2.5 Programme target areas and Population ....................................................................... 7 2.6 Participatory process to Programme Identification, Design and Implementation ....... 7 2.7 Bank Group Experience and Lessons Reflected in Programme Design ...................... 8 2.8 Programme Performance Indicators ............................................................................. 8 III. Programme Feasibility .......................................................................................................... 8 3.1 Economic and Financial Performance.......................................................................... 8 3.2 Environmental and Social Impacts ............................................................................... 9 3.3 Fragility Assessment .................................................................................................. 11 IV. Implementation ................................................................................................................... 12 4.1 Implementation Arrangements .................................................................................. 12 4.2 Monitoring .................................................................................................................. 15 4.3 Governance................................................................................................................. 16 4.4 Sustainability .............................................................................................................. 16 4.5 Road Sector Financing ............................................................................................... 17 4.6 Risk Management ....................................................................................................... 18 4.7 Knowledge Building .................................................................................................. 18 V. Legal Framework ................................................................................................................. 18 5.1 Legal Instrument ........................................................................................................ 18 5.2 Conditions Associated with Bank’s Intervention ....................................................... 18 5.3 Compliance with Bank Policies ................................................................................. 22 VI. RECOMMENDATIONS .................................................................................................... 22 6.1 Recommendations ...................................................................................................... 22 Annex I. Comparative Socio-economic Indicators of the Two Countries Annex II. Table of Bank Group Operations in the Two Countries Annex III. Programme Costs Annex IV. Map of the Programme Area CURRENCY EQUIVALENTS April 2018 UA 1.00 = LD 132 UA 1.00 = USD 1.42 UA 1.00 = EUR 1.19 WEIGHTS AND MEASURES Metric System 1 metric tonne = 2 204 pounds 1 kilogramme (kg) = 2.2 pounds 1 metre (m) = 3.281 feet 1 millimetre (mm) = 0.03937 inch 1 kilometre (km) = 0.621 miles 1 hectare (ha) = 2.471 acres GOVERNMENT FISCAL YEAR 1 July – 30 June (Liberia) 1 January – 31 December (Côte d’Ivoire) i Acronyms and Abbreviations ADF African Development Fund AIDS Acquired Immune Deficiency Syndrome AfT Agenda for Transformation AfIF Africa Investment Facility COLR Liberia Country Office CPIA Country Political and Institutional Assessment CSP Country Strategy Paper ECOWAS Economic Community for West African States EIRR Economic Internal Rate of Return FTHRP Fish Town – Harper Road Project EIB European Investment Bank ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU-AIP European Union Africa Investment Platform FM Financial Management GAC General Auditing Commission GDP Gross Domestic Product GoL Government of Liberia HIV Human Immunodeficiency Virus ICB International Competitive Bidding IRR International Rate of Return JAS Joint Assistance Strategy JICA Japan International Cooperation Agency LISGIS Liberia Institute of Statistics and Geo-Information Services M&E Monitoring and Evaluation MPW Ministry of Public Works MRU Mano River Union MRU- Mano River Union - Road Development and Transport Facilitation Programme RDTFP OPA Observatory of Abnormal Practices PAP Project Affected People PAGoDA Pillar Assessed Grant or Delegation Agreement PAR Project Appraisal Report PBA Performance-based Allocation PCN Project Concept Note PCR Project Completion Report PFMU Project Financial Management Unit PIDA Programme for Infrastructure Development in Africa PIU Programme Implementation Unit PAPD Pro-Poor Agenda for Prosperity and Development RAP Resettlement Action Plan RED Road Economic Decision Model RISP Regional Integration Strategy Paper ROW Right of Way SIDA Swedish International Development Agency TSF Transition Support Facility UA Unit of Account USD United States Dollars VOC Vehicle Operating Costs WB World Bank ii Programme Information Sheet Client Information BORROWERS/RECIPIENTS: Liberia; Côte d’Ivoire PROGRAMME TITLE: Mano River Union - Road Development and Transport Facilitation Programme – Phase II PROJECT AREA: Liberia: Fish Town - Kelipo (River Gee County); and Sanniquellie Loquatuo (Nimba County) Côte d’Ivoire/Liberia/ Boarder: Gbeunta EXECUTING AGENCY: Liberia: Ministry of Public Works (MPW) Côte d’Ivoire: Ministry of Economic Infrastructures, through the Agency for Road Management (AGEROUTE) as well as the ECOWAS Commission, the MRU Secretariat and the Joint Technical Committee (JTC). Financing Plan Source Amount (UA) Instrument ADF (PBA) 4, 400, 000 Loan ADF (PBA) 2, 800, 000 Grant ADF: Regional Envelope (2017) 9, 000, 000 Loan TSF (PBA) 9, 150, 000 Loan TSF (PBA) 3, 930, 000 Grant EU (EUR 20,200,000.00) 16, 974,790 Grant EIB (EUR 17,000,000.00) 14, 290 000 Loan GoL 1, 340, 000 Counterpart Funds TOTAL COST 61, 884, 790 Key ADF Financial Information Loan/Grant currency Unit of Account (UA) Interest* type Not Applicable Interest rate margin* Not Applicable Commitment fee on the ADF loan* 0.5% per year of the undisbursed loan amount 120 days following signature of the Loan Agreement Service charge on the ADF loan 0.75% per year of the disbursed but unreimbursed amount Other charges* Not applicable Maturity 40 years Grace period 10 years Timeframe – Main Milestones (expected) Concept Note approval July 2017 Programme approval September 2018 Effectiveness January 2019 Completion Date December 2022 Closing Date June 2023 iii EXECUTIVE SUMMARY I. General Programme Overview 1. The Road Development and Transport Facilitation Programme – Phase 2, is a regional programme between Liberia and Côte d’Ivoire to develop and pave a total of 67.1 km of road linking the South-eastern Liberia and western part of Cote D’Ivoire. The road sections concerned are: (i) Development of 20 km road from Fish Town to Kelipo (River Gee County in Liberia) and (ii) Development of 47.1 km from Sanniquellie to Loguatuo of Liberia, up to the Border town of Gbeunta in Cote D’Ivoire. These road sections are still dirt roads, barely 6 metres wide and impassable for most of the year. The bridges spanning the numerous rivers in the area are built of makeshift timber and they have numerous road checkpoints and ill-adapted border posts that render journeys long and fastidious. The South Eastern part of Liberia in particular is one of the least developed and has high poverty levels estimated at 54%. The lack of road infrastructure is one binding constraint to economic development and activities of the areas, including the movement of goods and services. To ensure that these roads handle current and future traffic flows, there is a need to improve their level of service, increase their capacity to receive traffic throughout the year and reduce the number of police checkpoints. This calls for the development and paving of the roads, construction of 36.55-meter span bridge on the Nuon River connecting Liberia and Côte d’Ivoire at the Loguatuo/Gbeunta Border and the construction of joint border control posts. 2. Over the past 24 years, successive crises within the MRU have aggravated the poverty rate, which is 21% higher than in other regions of the continent. The programme area has the economic potential to create about 800 formal