AFRICAN DEVELOPMENT BANK Public Disclosure Authorized Public Disclosure UNITED REPUBLIC OF TANZANIA DODOMA CITY OUTER RING ROAD (110.2 km) CONSTRUCTION PROJECT APPRAISAL REPORT Public Disclosure Authorized Public Disclosure RDGE/PICU DEPARTMENTS April 2019 TABLE OF CONTENTS I. STRATEGIC THRUST AND JUSTIFICATIONS ............................................................................... 1 1.1 PROJECT LINKAGES WITH NATIONAL AND REGIONAL STRATEGIES ........................................................ 1 1.2 RATIONALE FOR BANK INVOLVEMENT .................................................................................................. 1 1.3 AID COORDINATION ............................................................................................................................. 2 II. PROJECT DESCRIPTION ................................................................................................................... 2 2.1 PROJECT OBJECTIVES ........................................................................................................................... 2 2.2 PROJECT COMPONENTS ........................................................................................................................ 3 2.3 TECHNICAL SOLUTIONS ADOPTED AND ALTERNATIVES CONSIDERED .................................................... 3 2.4 PROJECT TYPE ..................................................................................................................................... 4 2.5 PROJECT COST AND FINANCING MECHANISMS ...................................................................................... 4 2.6 PROJECT AREA AND BENEFICIARIES ..................................................................................................... 6 2.7 PARTICIPATORY APPROACH TO PROJECT IDENTIFICATION, DESIGN AND IMPLEMENTATION..................... 6 2.8 BANK GROUP EXPERIENCE AND LESSONS REFLECTED IN PROJECT DESIGN ............................................ 7 2.9 KEY PERFORMANCE INDICATORS ......................................................................................................... 7 III. PROJECT FEASIBILITY ..................................................................................................................... 7 3.1 ECONOMIC AND FINANCIAL PERFORMANCE ........................................................................................... 7 3.2 ENVIRONNEMENTAL AND SOCIAL IMPACT ............................................................................................ 8 3.3 REGIONAL INTEGRATION.................................................................................................................... 10 3.4 ROAD SAFETY ................................................................................................................................... 11 3.5 URBAN DEVELOPMENT ...................................................................................................................... 11 IV. IMPLEMENTATION ......................................................................................................................... 12 4.1 IMPLEMENTATION ARRANGEMENTS.................................................................................................... 12 4.2 PROCUREMENT ARRANGEMENTS ........................................................................................................ 13 4.3 FINANCIAL MANAGEMENT ARRANGEMENTS ....................................................................................... 14 4.4 IMPLEMENTATION AND SUPERVISION SCHEDULE................................................................................. 15 4.5 MONITORING. .................................................................................................................................... 15 4.6 GOVERNANCE .................................................................................................................................... 16 4.7 SUSTAINABILITY ................................................................................................................................ 17 4.8 RISK MANAGEMENT .......................................................................................................................... 17 4.9 KNOWLEDGE BUILDING ..................................................................................................................... 18 V. LEGAL AND COMPLIANCE SECTION .......................................................................................... 18 5.1 LEGAL INSTRUMENT .......................................................................................................................... 18 5.2 CONDITIONS ASSOCIATED WITH THE BANK’S INTERVENTION .......................................................... 18 5.3 COMPLIANCE WITH BANK POLICIES ................................................................................................ 20 VI. CONCLUSIONS AND RECOMMENDATIONS ............................................................................. 20 6.1 CONCLUSION ..................................................................................................................................... 20 6.2 RECOMMENDATION ........................................................................................................................... 20 APPENDIX I: COMPARATIVE SOCIAL ECONOMIC INDICATORS ................................................... I APPENDIX II: TABLE OF BANK GROUP OPERATIONS IN TANZANIA AS AT APRIL, 2019 .......... II APPENDIX III: PROJECT COSTS............................................................................................................. IV APPENDIX IV: JUSTIFICATION OF THE GOVERNMENT COUNTERPART LEVEL FOR ................ TANZANIA ...................................................................................................................... VII APPENDIX V: MAP OF THE PROJECT AREA ....................................................................................... X Currency Equivalents December 2018 UA 1 = TZS 3195.19 UA 1 = USD 1.4 Fiscal Year Tanzania: 1 July-30 June Weights and Measures 1 metric ton = 2 204 pounds 1 kilogram (kg) = 2.2 pounds 1 meter (m) = 3.281 feet 1 millimeter (mm) = 0.03937 inch 1 kilometer (km) = 0.62 miles 1 hectare (ha) = 2.471 acres i Acronyms and Abbreviations AADT Annual Average Daily Traffic AC Asphalt Concrete ADB African Development Bank ADF African Development Fund BADEA The Arab Bank for Economic Development in Africa BPS Borrower Procurement System BTC Belgium Technical Cooperation CAG Controller and Auditor General CBA Cost-Benefit Analysis CC Central Corridor CFRA Country Fiduciary Risk Assessment CPAR Country Procurement Assessment Report CPIA Country Policy and Institutional Assessment CSP Country Strategy Paper CT Country Team DPG-T Development Partners Group - Transport DRC Democratic republic of Congo EAC East Africa Community EIRR Economic Internal Rate of Return ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU The European Union FM Financial Management FYDP II Second Five Year Development Plan (of the United Republic of Tanzania) GDP Gross Domestic Product GHG Green House Gas GEF Global Environmental Facility GOT Government (of the United Republic) of Tanzania HDM-4 Highway Development and Management Model SSHSMP Health and Safety Plan HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome IFMS Integrated Financial Management System IMF International Monetary Fund ICT Information and communication technology ISS Integrated Safeguards System JICA Japan International Cooperation Agency KfW Kreditanstalt für Wiederaufbau ("Reconstruction Credit Institute") KPI Key Performance Indicators MoFP Ministry of Finance and Planning MoWTC Ministry of Works, Transport and Communication NDP National Development Plan NEMC National Environment Management Council NIT National Institute of Transport NGO Non-Government Organization ii NPV Net Present Value OpsCom Operations Committee (of Senior Management) PAP Project Affected Persons PAR Project Appraisal Report PCN Project Concept Note PCR Project Completion Report PEFA Public Expenditure and Financial Accountability PFM Public Finance Management PIA Project Influence Area PMMR Performance-based Management and Maintenance of Roads PPAA Public Procurement Appeals Authority PPPD Public Procurement Policy Division PPRA Public Procurement Regulatory Authority PMT Project Management Team PRCA Procurement Risk and Capacity Assessment RAP Resettlement Action Plan RBLF Results Based Logical Framework RFB Road Fund Board RMC Regional Member Country (of the African Development Bank) RSS Roadside Station SCF Standard Conversion Factor SSESMP Site Specific Environmental and Social Management Plan RSS Road-Side Stop SBD Standard Bidding Document SGR Standard Gauge Railway SNSC Safeguard and compliance department STI Sexually transmitted infections TAH Trans-African Highway TANROADS Tanzania National Roads Agency TARURA Tanzania Rural & Urban Roads Agency TB Tuberculosis TSF Transition States Facility TSIP Transport Sector Investment Plan UA Units of Account UNCITRAL United Nations Commission on International Trade Law USAID United States Agency for International Development USD United States Dollar VOC Vehicle Operating Cost VTC Vocational Training Centre WB World Bank iii Project Information Sheet Client Information BORROWER: United Republic of Tanzania PROJECT TITLE: TANZANIA: DODOMA CITY OUTER RING ROAD (110.2 km) CONSTRUCTION PROJECT PROJECT AREA: Dodoma