Document of The World Bank Report No: 20500 MLI Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ONA PROPOSED CREDIT IN THE AMOUNT OF SDR 86.7 MILLION Public Disclosure Authorized (US$ 115.1 MILLION EQUIVALENT) TO THE REPUBLIC OF MALI FOR THE NATIONAL RURAL INFRASTRUCTUREPROJECT IN SUPPORT OF THE FIRST PHASE OF THE NATIONAL RURAL INFRASTRUCTUREPROGRAM Public Disclosure Authorized June 2, 2000 Rural Development III Country Department 15 Africa Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective February 07, 2000) Currency Unit CFA Franc (CFAF) 673 CFAF = US$1 US$0.0015 = I CFAF FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AGETIER Agency for Rural Works and Equipment (Agence d'Execution de Travaux d'Infrastructures et d 'Equipements Ruraux) AGETIPE Agency for Public Works and Employment (Agence d'Execution des Travaux d'Inter2t Public et pour I 'Emploi) APL Adaptable Program Loan CAS Country Assistance Strategy CFAF Westem Africa Franc (Franc de la Communaute Financiere Africaine) CNRA National Committee for Agronomic Research (Comite National de la Recherche Agronomique) CTD Decentralized communes (Collectivites territoriales decentralisees) DNACPN National Directorate for Sanitation, and Pollution and Nuisance Control (Direction Nationale de I 'Assainissement et du Controle de la Polution et des Nuisances) DNAER National Directorate for Rural Works and Equipment (Direction Nationale de I 'Amenagementet de I 'Equipement Rural) DNH National Directorate for Water (DirectionNationale de I 'Hydraulique) DNSI National Directorate for Statistic and Computing (Direction Nationale de la Statistique et de l'Informatique) DNTP National Directorate for Public Works (Direction Nationale des Travaux Publics) DRACPN Regional Directorate for Sanitation, and Pollution and Nuisance Control (Direction Regionale de ! 'Assainissement et du Contr6le de la Polution et des Nuisances) DRAER Regional Directorate for Rural Works and Equipment (Direction Regionale de l'Amenagement et de I 'Equipement Rural) DIRH Regional Directorate for Water (Direction Regionale de I 'Hydraulique) FAO Food and Agriculture Organization of the United Nations GOM Government of Mali IDA International Development Association KfW German Cooperation Bank (Kredietanstaltfur Wiederaujbau) M&E Monitoring and evaluation MDR Ministry of Rural Development (Ministere du Developpement Rural) NGO Non-Governmental Organization NRIP National Rural Infrastructure Project O&M Operation and maintenance ON Office du Niger PCC Project Coordination Committee PCU Project Coordination Unit PNIR Programme national d'infrastructures rurales (PNIR) RA Road Authority RWSS Rural Water Supply and Sanitation SECO-ONG Secretariat for Coordinating Non-Governmental Organizations (Secrdtariat pour la Coordination des Organisations Non-Gouvernementales) SOE Statement of Expenses TOR Terms of Reference Vice President: Callisto Madavo Country Director: Hasan Tuluy Sector Manager: Jean-Paul Chausse Team Leader: Eustacius Betubiza MALI National Rural Infrastructure Project CONTENTS A: PROGRAM PURPOSE AND PROJECT DEVELOPMENT OBJECTIVE .................. ................................1 Al. PROGRAMPURPOSE AND PROGRAM PHASING ...................... ...................................................... I A2. PROJECTDEVELOPMENT OBJECTIVE (SEE ANNEX 1) ................................................... ......................... 2 A3. KEY PERFORMANCEINDICATORS (SEE ANNEX1) ................................ ............................................ 2 B: STRATEGIC CONTEXT ............................................................................ 3 B 1. SECTOR-RELATEDCOUNTRY ASSISTANCE STRATEGY (CAS) GOALSUPPORTED BY THEPROJECT ......... ...........3 B2. MAIN SECTORISSUES AND GOVERNMENT STRATEGY ............................................................................ 4 B3. SECTORISSUES TO BE ADDRESSEDBY THEPROJECT AND STRATEGIC CHOICES ................................................ 11 B4. PROGRAMDESCRIPTION AND PERFORMANCE TRIGGERS FOR SUBSEQUENT LOANS .......................................... 13 C: PROGRAM AND PROJECT DESCRIPTION SUMMARY .........................................................................15 C 1. PROJECTCOMPONENTS .......................................................... 15 C2. KEY POLICYAND INSTITUTIONAL REFORMS SUPPORTED BY THE PROJECT....................................................... 21 C3. BENEFITSAND TARGET POPULATION .......................................................... 21 C4. INSTITUTIONALAND IMPLEMENTATION ARRANGEMENTS .......................................................... 22 D: PROJECT RATIONALE .......................................................... 27 DI. PROJECTALTERNATIVES CONSIDERED AND REASONS FOR REJECTION .......................................................... 27 D2. MAJORRELATED PROJECTS FINANCED BY THEBANK AND/OROTHER DEVELOPMENT AGENCIES .................... 28 D3. LESSONSLEARNED AND REFLECTED IN THEPROJECT DESIGN .......................................................................... 28 D4. INDICATIONS OF BORROWER COMMITMENT AND OWNERSHIP.......................................................................... 29 D5. VALUEADDED OF BANK SUPPORTIN THIS PROJECT.......................................................................... 29 E: SUMMARY PROJECT ANALYSIS .......................................................................... 30 El. ECONOMICANALYSIS .......................................................................... 30 E2. FINANCIAL(SEE ANNEX 5) .......................................................................... 31 E3. TECHNICAL.......................................................................... 33 E4. INSTITUTIONAL........ .................................................................. 33 ES. SOCIAL....... ................................................................... 35 E6. ENVIRONMENTAL ASSESSMENT (ENVIRONMENTCATEGORY B) ........................................................................36 E7. PARTICIPATORYAPPROACH .......................................................................... 37 F: SUSTAINABILITY AND RISKS .......................................................................... 38 F 1. SUSTAINABILITY ........ .................................................................. 38 F2. CRITICALRISKS ........ .................................................................. 40 F3. POSSIBLECONTROVERSIAL ASPECTS .......................................................................... 42 G: MAIN LOAN CONDITIONS .......................................................................... 42 GI. BOARDCONDITIONS: NONE .......................................................................... 42 G2 CREDITEFFECTIVENESS CONDITIONS .......................................................................... 42 G3. DISBURSEMENTCONDITIONS .......................................................................... 42 H: READINESS FOR IMPLEMENTATION .......................................................................... 43 1. COMPLIANCE WITH BANK POLICIES ................................................... 43 ANNEXES .................................................... 44 ANNEX 1: PROJECTDESIGN SUMMARY ................................................... 44 ANNEx 2: DETAILEDPROJECT DESCRIPTION ................................................... 51 ANNEx 3: ESTIMATEDPROJECT COSTS ................................................... 67 ANNEx 4: COST-BENEFIT/COST-EFFECTIVENESSANALYSIS ................................................... 68 ANNEX5: FiNANCIALSUMMARY ................................................... 77 ANNEX 6: PROCUREMENTAND DISBURSEMENT ARRANGEMENTS ................ ................................... 80 Table 6A. Procurement Methods................................................... 83 Table 6B: Thresholdsfor Procurement Methods and Prior Review ................................................... 84 Table 6C: Allocation of IDA Credit Proceeds ................................................... 89 ANNEx 7: PROJECTPROCESSING BUDGET AND SCHEDULE ................................................... 94 ANNEx 8: DOCUMENTSIN PROJECTFILE* ................................................... 95 ANNEX9: STATEMENTOF LOANS AND CREDITS ................................................... 97 ANNEx 10: COUNTRYAT A GLANCE................................................... 99 ANNEx 1:1: LETTEROF DEVELOPMENTPOLICY ................................................... 101 ANNEX 12: ENVIRONMENTALAND SOCIAL MANAGEMENT PLAN ................................................... 110 Maps IBRD 30882 & 30883 v MALI National Rural Infrastructure Project Project Appraisal Document Africa Region Country Departnent 15 Date: June 2, 2000 Team Leader: Eustacius N. Betubiza (AFTR3) Country Director: Hasan A. Tuluy (AFC15) Sector Manager: Jean-Paul Chausse (AFTR3) Project ID: P041723 Sector(s): AI - Irrigation & Drainage, TR-Rural Roads, VY-Environment, WR-Rural Water Supply & Sanitation. Lending Instrument: Adaptable Program Loan Theme(s): Rural Development, Transport, Water Poverty Targeted Intervention: Yes Program Fitin.cing Data Estimatedv Implementation Period Indicative Financing Plan vBakFY) Borrower IDA Others Total Commitment Closing US$ m % US$m US$ m Date Date APL 1 115.1 82.6 24.2 139.3 FY01 FY06 17.4 APL 2 150.0 83.3 30.0 180.0 FY06 FY11 18.0 Total 265.1 90.8 54.2 319.3 35.4 Type of Financing Credit Total Bank Financing (US$m) 115.1 Proposed Terms: