Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD2039 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF EURO 64 MILLION Public Disclosure Authorized (US$70 MILLION EQUIVALENT) TO THE REPUBLIC OF MALI FOR A RURAL MOBILITY AND CONNECTIVITY PROJECT June 23, 2017 Public Disclosure Authorized Transport and ICT Global Practice Africa Region This document is being made publicly available prior to Board consideration. This does not imply a presumed Public Disclosure Authorized outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the World Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective on April 30, 2017) Currency Unit = EUR EUR0.914 = US$1 US$1.371 = SDR1 FISCAL YEAR January 1 - December 31 Regional Vice President: Makhtar Diop Country Director: Soukeyna Kane Senior Global Practice Director: Jose Luis Irigoyen Practice Manager: Nicolas Peltier Task Team Leaders: Cheick Omar Tidiane Diallo, Vincent Vesin ABBREVIATIONS AND ACRONYMS ADR Regional Development Agency (Agence de Développement Régional) AF Additional Financing AGEROUTE Road Maintenance Agency (Agence d’exécution des travaux d’entretien routier) AGETIER Rural Civil Works and Equipment Agency (Agence d’exécution des travaux d’infrastructure et d’équipements ruraux) ANASER National Road Safety Agency (Agence Nationale de la Sécurité Routière) BP Bank Procedure CBO Community-Based Organization CE Citizen Engagement CMDT Malian Company for Textile Development (Compagnie Malienne pour le Développement du Textile) CPF Country Partnership Framework DA Designated Account DGMP General Directorate of Procurement (Direction Générale des Marchés Publics) DFM Directorate of Finance and Material (Direction des Finances et du Matériel) DNA National Directorate of Agriculture (Direction Nationale de l’Agriculture) DNACPN National Directorate for the Control of Pollution and Nuisances (Direction Nationale pour le Contrôle des Pollutions et Nuisances) DNR National Directorate of Roads (Direction Nationale des Routes) EIRR Economic Internal Rate of Return ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESS Environmental Safeguards Specialist FM Financial Management FY Fiscal Year GDP Gross Domestic Product GoM Government of Mali GRM Grievance Redress Mechanism GRS Grievance Redress Service ICB International Competitive Bidding IFC International Finance Cooperation IFR Interim Financial Report IDA International Development Association LCS Least-Cost Selection M&E Monitoring and Evaluation MED Ministry of Equipment and Accessibility (Ministère de l’Equipement et du Désenclavement) NCB National Competitive Bidding NCU National Coordination Unit NGO Non-Governmental Organization NPV Net Present Value OHADA Organization for the Harmonization of Business Law in Africa (Organisation pour l’Harmonisation du Droit des Affaires en Afrique) OP Operational Policy PAD Project Appraisal Document PDO Project Development Objective PP Procurement Plan PPR Post Procurement Review QBS Quality Based Selection QCBS Quality and Cost Based Selection RAP Resettlement Action Plan RAI Rural Access Index RPF Resettlement Policy Framework SCD Systematic Country Diagnostic SC Steering Committee TC Technical Committee ToR Terms of Reference The World Bank MALI - RURAL MOBILITY AND CONNECTIVITY PROJECT (P160505) BASIC INFORMATION Is this a regionally tagged project? Country(ies) Financing Instrument No Investment Project Financing [ ] Situations of Urgent Need of Assistance or Capacity Constraints [ ] Financial Intermediaries [ ] Series of Projects Approval Date Closing Date Environmental Assessment Category 17-Jul-2017 30-Dec-2022 B - Partial Assessment Bank/IFC Collaboration No Proposed Development Objective(s) The Project Development Objective is to improve and sustain road access of farming communities to markets and basic services in the project area, and, in the event of an eligible crisis or emergency, to provide immediate and effective response to it. Components Component Name Cost (US$, millions) Rural roads improvement 63.80 Routine maintenance and road safety 8.60 Operational support 3.60 Contingent emergency response 0.00 Page 1 of 48 The World Bank MALI - RURAL MOBILITY AND CONNECTIVITY PROJECT (P160505) Organizations Borrower : REPUBLIC OF MALI Implementing Agency : Minister of Equipment and Accessibility PROJECT FINANCING DATA (US$, Millions) [ ✔ ] [ ] IBRD [ ✔ ] IDA Credit [ ] IDA Grant [ ] Trust [ ] Counterpart Funds Parallel Funding [ ] Crisis Response [ ] Crisis Response Financing Window Window [ ] Regional Projects [ ] Regional Projects Window Window FIN_COST_OLD Total Project Cost: Total Financing: Financing Gap: 76.00 76.00 0.00 Of Which Bank Financing (IBRD/IDA): 70.00 Financing (in US$, millions) FIN_SUMM_OLD Financing Source Amount Borrower 6.00 IDA-61240 70.00 Total 76.00 Expected Disbursements (in US$, millions) Fiscal Year 2018 2019 2020 2021 2022 2023 Annual 10.00 17.00 20.00 18.00 5.00 0.00 Cumulative 10.00 27.00 47.00 65.00 70.00 70.00 Page 2 of 48 The World Bank MALI - RURAL MOBILITY AND CONNECTIVITY PROJECT (P160505) INSTITUTIONAL DATA Practice Area (Lead) Transport & ICT Contributing Practice Areas Agriculture Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment Yes c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating 1. Political and Governance High 2. Macroeconomic Moderate 3. Sector Strategies and Policies Moderate 4. Technical Design of Project or Program Moderate 5. Institutional Capacity for Implementation and Sustainability Substantial 6. Fiduciary Moderate 7. Environment and Social Moderate 8. Stakeholders Substantial Page 3 of 48 The World Bank MALI - RURAL MOBILITY AND CONNECTIVITY PROJECT (P160505) 9. Other 10. Overall High COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✔] No Does the project require any waivers of Bank policies? [ ] Yes [✔] No Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 ✔ Natural Habitats OP/BP 4.04 ✔ Forests OP/BP 4.36 ✔ Pest Management OP 4.09 ✔ Physical Cultural Resources OP/BP 4.11 ✔ Indigenous Peoples OP/BP 4.10 ✔ Involuntary Resettlement OP/BP 4.12 ✔ Safety of Dams OP/BP 4.37 ✔ Projects on International Waterways OP/BP 7.50 ✔ Projects in Disputed Areas OP/BP 7.60 ✔ Legal Covenants Sections and Description Schedule 2. Section I.A.1. The Recipient shall vest in its Ministry of Equipment and Accessibility the responsibility of implementing the overall Project. To that end, the Recipient shall, no later than three (3) months after the Effective Date, establish and thereafter maintain a Project Steering Committee until the completion of the Project, with terms of reference and staffing satisfactory to the Association, to be responsible for ensuring strategic direction, overall oversight, and coordination for the Project. Page 4 of 48 The World Bank MALI - RURAL MOBILITY AND CONNECTIVITY PROJECT (P160505) Sections and Description Schedule 2. Section I.B. The Recipient shall commit a total amount of not less than six million United States Dollars (US$ 6,000,000) for the exclusive purpose of providing its own financing for activities under Part B.2. and Part C.2. of the Project (“Counterpart Funding”) in the following manner: a) not later than March 31 of each year of Project implementation, approve the following amounts allocated from the funds intended for road maintenance managed by the Road Authority for the exclusive purpose of providing its own financing for activities under Part B.2. of the Project: five hundred thousand United States Dollars (US$ 500,000) for 2018; five hundred thousand United States Dollars (US$ 500,000) for2019; one million five hundred thousand United States Dollars (US$ 1,500,000) for 2020; one million five hundred thousand United States Dollars (US$ 1,500,000) for 2021; and one million six hundred thousand United States Dollars (US$ 1,600,000) for 2022. b) (i) not later than July 31, 2017, open and maintain until the completion of the Project, a separate account for the exclusive purpose of providing its own financing for activities under Part C.2. of the Project (“Project Account”) in a total amount of four hundred thousand United States Dollars (US$ 400,000); and (ii) not later than August 31, 2017, deposit the sum of two hundred thousand United States Dollars (US$ 200,000) into the Project Account, and not later than August 31, 2018, deposit the sum of two hundred thousand United States Dollars (US$ 200,000) into the Project Account. Sections and Description Schedule 2. Section II.A.2. Notwithstanding Section II.A.1 of Schedule 2 to the Agreement above, no later than thirty (30) months after the Effective Date, or such later date as may be agreed upon by the Recipient and the Association in writing,