Sudan - Third Highway Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 4290-SU STAFF APPRAISAL REPORT SUDAN THIRD HIGHWAY PROJECT February 6, 1984 Eastern Africa Regional Office Transportation II Division This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVAIENT Sudanese Pounds (L.S) = 100 piastre L.S 1.00 US$ 0.662 L.S 100 = US$ 66.2 L.S 1,000,000 US$ 662,000 WEIGHIS AND MEASURES 1 meter (m) 3.28 feet (ft) 1 kilometer (km) 0.62 miles (m) 1 sq. km (km2) 0.3886 sq mi (mi2) 1 metric ton (mt) = 2,205 pounds (lb) 1 liter (1) = 0.264 gallons (gal) GLOSSARY OF ABBREVIATIONS CAD = Civil Aviation Department EEC = European Economic Community KP = Khartoum Polytechnic LWOST = Low Water Ordinary Spring Tide MCPW = Minsitry of Construction and Public Works MFEP Ministry of Finance and Economic Planning MTC Ministry of Transport and Communications ODA = Overseas Development Administration PPU Project Preparation Unit RBPC = Roads and Bridges Public Corporation RTC = River Transport Corporation SPC = Seaports Corportion SRC = Sudan Railways Corporation SRMCTR former Southern Regional Ministry of Communications, Iransport and Roads TPU Training Production Unit UNDP = United Nations Development Program USAID = United States Agency for International Development voc = vehicle operating costs vpd = vehicles per day GOVERNMENT OF THE SUDAN FISCAL YEAR July 1 - June 30  FOR OFFICIAL USE ONLY IHE DEMOCRATIC REPIJBLIC OF IHE SUDAN THIRD HIGHWAY PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. CREDIT AND PROJECT SUMMARY ........................ i-Iii I. THE TRANSPORT SECTOR ........................ . . . 1 A. Economic Background.1 B. The Transport System.2 9 C. Transport Policy, Planning and Coordination. .4 D. Past Bank Group Transport Sector Operations .6 II. THE HIGHWAY SUBSECTOR .9 A. The Network.9 B. Road Transport Characteristics .9 C. Administration . 13 D. Staff and Training.....................14 E. Planning and Financing .14 F. Design and Construction .and.P.16 G. Maintenance .............................................. 17 III. THE PROJECT ............. 19 A. Objectives .19 B. Description. .19........................................ C. Cost Estimates .23...................................... D. Financing.25 ............................ ............... E. Implementation and Procurement.2 5...... ............... F. DisbursementC...........................................28 G. Accounting, Auditing and Reporting Requirements ......30 H. Environmental Impact....................30 IV. PROJECT JUSTIFICATION......................31 A. General ..........................31 B. Economic Evaluation and Sensitivity Analysis........31 C. Risks .32 V. AGREEMENTS REACHED AND RECOMMENDATION .. 33 This report was prepared by Messrs. K.V.S.K. Nathan (Engineer) and M. Dick (Senior Economist), who appraised the project in October 1982e Mr. J. de Weille (Senior Economist) assisted during project processing. This document has a restricted distribution and may be used by recipients only in the performance of , their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Annexes 1. Terms of Reference for Transportation Cost Review 2. Outline Terms of Reference for Technical Assistance to RBPC 3. Estimated Road Maintenance Expenditures,, RBPC (FY 1985-88) 4. RBPC Road Maintenance Equipment and Vehicle Requirements 5. RBPC Equipment Requirements for TPU 6. RBPC Fuel Requirements for TPU 7. List of Training Equipment for Khartoum Polytechnic 8. Outline Terms of Reference for Transport Economist, RBPC 9. Outline Terms of Reference for Highway Organization and Investment Study 10. Project Composition and Cost Estimates: Assistance to RBPC 11. Steps to Initiate Project Execution 12. Project Progress and Reporting Requirements 13. Assessment of Benefits from Road Maintenance Program 14. Documents and Data Available in Project File Charts Organization of the Roads and Bridges Public Corporation (World Bank 24496) Map SUDAN - Iransport Network (IBRD 16809R2)  SUDAN THIRD HIGHWAY PROJECT CREDIT AND PROJECT SUMMARY Borrower: Democratic Republic of the Sudan Beneficiary: Roads and Bridges Public Corporation (RBPC) Amount: SDR 15.5 million Terms: Standard Onlending Terms: Not applicable Project Description: The proposed Project would, over a period of four years, strengthen RBPC through: (a) Technical assistance and training in: management and organization, planning and execution of road maintenance; (b) Provision of equipment, spares, limited supplies of fuel and bitumen; and (c) Consultancy services for a highway organization and investment study and finance two ferries for the Nile crossing at Ed Dueim. The main benefits from improved road maintenance would be lower vehicle operating costs resulting from a reduction in the rate of degradation of all roads. The institutional aspects of the project would result in improved transport planning and increased efficiency of RBPC. The two ferries would result in savings in operating costs of vehicles which would otherwise have to travel a longer distance over sandy tracks. Risk affecting achievement of the project objectives would be failure to fully achieve institutional objectives, due to difficulties in recruiting and retaining qualified technical assistance staff. Problems encountered in these aspects under the ongoing Highway Projects are being overcome and experience gained should result in a more expeditious implementation of technical assistance components under the proposed Project. A comprehensive implementation schedule, including the timing of steps to initiate project execution, terms of reference and composition of technical assistance teams and their counterparts has been agreed upon.  -ii- Summary of Project Cost: Local Foreign Total ------US$ Million---- Assistance to RBPC A. Technical Assistance 0.3 2.1 2.4 B. Training (including training equipment, spares and fuel) 0.3 2.1 2.4 C. Equipment, Tools, Spares, Bitumen - 5.7 5.7 Subtotal 0.6 9.9 10.5 Ferries 0.2 2.0 2.2 Other Consulting Services Highway Organization and Investment Study 0.1 0.7 0.8 Base Cost (Ortober 1983, net of duties and taxes)l/ 0.9 12.6 13.5 Contingencies A. Physical 0.1 1.1 1.2 B. Prices2/ 0.1 2.3 2.4 Subtotal 0.2 3.4 3.6 Total project cost 1.1 16.0 17.1 1/ Taxes and duties applicable to the ProjeCt Costs are neglible. 2/ For local price contingencies, it has been assumed that any excess of domestic inflation over international inflation since December 1982 will be offset by a corresponding depreciation of the Sudanese Pound. Under this assumption, the price continqency for the local cost component, expressed in US Dollars, is equal to that for the foreign exchange component.  Financing: Local Foreign Total ------US$ Million---- IDA - 16.0 16.0 Government 1.1 - 1.1 Total 1.1 16.0 17.1 Estimated Disbursements: IDA fiscal Year 1985 1986 1987 1988 1989 Annual 1.97 4.27 4.36 3.50 1.90 Cumulative 1.97 6.24 10.60 14.10 16.00 Rate of Return: Road Maintenance Component: 1540% Ferries : >100% Appraisal Report: No. 4290-SU February 6, 1984. Map: IBRD No. 16809R2  I  I. THE TRANSPOR1 SECTOR A. Economic Background 1.01 Sudan, with an area of 2.5 million square kilometers, is the largest country on the African continent. It is essentially an enormous plain, with a large uninhabited desert in the northern third of the country and tropical forests and savannahs in the South. It is traversed from South to North by the Nile River system (see Map), close to which lives a large part of the country's 18.5 million population which is growing at a rate of 2.7