Rwanda - Sixth Highway Project

Docunent of The World Bank FoR omFCIAL USE ONLY C P. /(0 Y/- Rul Report No. 5646-RW STAFF APPRAISAL REPORT RWANDA SIXTH HIGHWAY PROJECT November 6, 1985 Transportation Division Eastern & Southern Africa Regional Office 7hi dw_se u h a rmir, d1ibWod mad ia be Md bY redPlkis OY b d erfw Xir 6edal dutIe. lb es_mm ma a erwlse be diseomud withot WoM dank authuatWO.  CURRENCY EQUIVALENTS Currency Unit - Rwandese Franc (FRW) US$ 1.00 _ FRW 1051/ WEICGTS AND MEASURES 1 meter (m) x 3.28 feet (ft) 1 kilometer (km) - 0.62 mile (mi) 1 sq. kilometer (km2) - 0.386 square miles (sq mi) I hectare (ha) - 2.47 acres (ac) I metric ton (m ton) - 2,204 pounds (lbs) ACRONYMS AND ABREVIATIONS BADEA e Arab Bank for Economic Development in Africa DANIDA - Danish International Development Agency ECD E Engineering and Control Department EDF = European Development Fund FRG - Federal Republic of Germany MOTC Ministry of Transport and Communications MPW = Ministry of Public Works RB = Roads Branch of the Ministry of Public Works STIR - Societe des Transports Internationaux du Rwanda UNDP = United Nations Development Programme vOC = Vehicle Operating Costs vpd Vehicle per Day WD = Works Department WFP World Food Program 'W = Workshop and Warehouse Section GOVERNMENT OF RWANDA FISCAL YEAR January 1 - December 31 1/ Rate used in the evaluation of this project.  FOR OFFICIAL USE ONLY RVA SIXTH HIG(WAY PROJECT STAP? APPRAISAL REPORT Table of Contents Page No CREDIT AND PROJECT SUMIARY i-ii I. 7ER TRANSPORT SECTOR .......................................... 1 A. Economic and Sector Features............................... 1 B. Sector Development Objectives and Organization............. 1 C. Transport Planning and Transportation Sector Expenditures.. 2 D. International Transport............................................ 4 E. Roads and Road Transport ........................... ... ..... 5 (i) The Network ........................................ 5 (ii) Road Use .............................................. 6 (iii) Road Transport Industry ................ .............. 6 (iv) Road User Charges...................................... 7 (v) Traffic Regulations and Road Safety................ 8 F. Other Modes .......................................s....... 8 Ci) Lake Transport ..................................... 8 (ii) Air Transport ..................................... 8 G. Highway Administration.....o....e........*.e.................. 9 Ci) Organizational Structure, Staffing, Training...0... 9 (ii) Financing ..*......... .... 10 (iii) Road Maintenance and Equipment Management.......... 11 (iv) Engineering and Construction.................00*00000 11 H. Experience with Past lending in the Sector................. 12 II. T7E PRO9RKL AND THE PROJECT . ................................... 14 Ao Objectives -vooen.ooomo ..oa.e.oooooo.,........................... 14 B. The Road Maintenance and Reconstruction Program (1986-1989) 14 (i) Maintenance Works by Force Account................. 14 (ii) Maintenance Works by Contract ............ ........... 15 (iii) Reconstruction of Kigali Gatuna Road............... 16 This report is based on the findings of an appraisal mission to Rwanda in December 1984. Mission members included J. Van der Ven (Sr. Econo- mist), P. Sooh (Highway Engineer), A. Kassab (Financial Analyst). C. Tran-Luu (Training Specialist) visited Rwanda in February 1985. This document has a restricted distribution and may be used by recipients only in the perfonnance of their offiia duties Its contents may not otherwie be disclosd without World Bank authorization.  (ii) Page No (iv) Improvement of Soils Laboratory.................... 17 (v) Manpower Development............................... 17 (vi) Consulting Services. ........... ......*. ............ 17 (vii) Complementary Sector Actionse....................... 18 C. Costs of the Program.................................... 19 D. Financing of the Program.......... ......................... 21 E. Annual Programming and Monitoring.......................... 22 F. Components Financed by the Project......................... 23 G. Implementation and Procurement............................. 25 H. Disbursemente...... .e................. e........seeee..e.ee . 27 I. Accounting, Auditing and Reporting Requireuents............ 28 J. Environmental Aspects ................................. 29 K. Poverty Alleviation Aspects ............................... 29 III. ECONMC INVALUION 30 A* eea .............................. 30 B. Benefits and Beneficiaries................................. 30 C. Economic Evaluation of the Maintenance Program............. 31 D. Economic Evaluation of the Kigali-Gatuna Road ..............s 32 E. Overall Evaluation of Project Components................... 34 Fe ik .............................. 35 IV. REACHED AND 1 1COhIIKI IDATON ........ ................. 36 1.1 Development of Paved Roads 1.2 Vehicle Fleet 1.3 Imports of Petroleum Products - Fuel Prices and Taxes 1.4 Government Revenues from Road users and Expenditures on Raods 1.5 Air Transport 1.6 Highway Expenditures 1976-1983 2.1 Maintenance of Paved Roads 2.2 Maintenance of Earth/Gravel Roads 2.3 Equipment Requirements 2.4 Staffing and Manpower Development 2.5 Technical Assistance 2.6 Study of Communal Roads 2.7 Consultant Services in Transport Planaing 2.8 Road Maintenance and Reconstruction Program (1986-1989) Financing Plan 2.9 Programming and Monitoring of Maintenance Program 3.1 Cost of Force Account Maintenance Activities 3.2 Vehicle Operating Costs  (iii) 3.3 Economic Evaluation - Resurfacing and Regravelling/Improvement 3.4 Economic Evaluation - Routine Maintenance 3.5 Economic Evaluation of Reconstruction of the Xigali-Gatuna Road 4. Related Documents and Data Available in Project File CBARTS 1. Organization of the Roads Branch 2. Project Implementation Schedule mAS IBRD 18973 IBRD 18940  (iv) RHADA SI3T HIGHWAY PRoJsc Credit and Project S_mary Borrower: Republic of Rwanda Amount: An IDA credit of SDR 10.7 million (US$11.0 million equivalent) and an African Facility Credit of SDR 14.5 million (US$15.0 million equivalent). Terms: Standard IDA terms Project: The project objectives are: (i) to improve public expenditure policies in the highway sector by assisting Government to develop appropriate forward road maintenance and construction programs; (ii) to strengthen donor coordination in the sector with a view to channeling external aid to high priority needs (iii) to improve road maintenance and construction planning; (iv) to strengthen the capacity of the Roads Branch for administering the country's road network; and (v) to improve road maintenance operations and thereby reduce road transport system costs. To achieve these objectives, the project would help finance the Government's 4-year (1986 - 1989) road maintenance and reconstruction program and would provide for technical assistance and training to assist in institution building and human resource development. It would include in particular: (i) road maintenance works; (ii) improvement of facilities of the Government's soils laboratory; (iii) training; (iv) reconstruction of the Kigali-Gatuna road; and, (v) consulting services for development of better techniques for maintenance of communal roads and for transport planning. Benefits: The principal benefits would be a reduction in road transport system costs due to reduced vehicle operating costs, deferred costly road reconstruction and improved road safety. Risks: The main risks facing the project are implementation delays and cost increases that could arise if shortages develop in imported fuel, parts and materials as a result of the tight foreign exchange situation of the country and/or transport difficulties in neighboring countries. The measures included under the project would substantially reduce this risk.  (v) Estimated Prolect Costs Local Foreign Total - --US oillion--- I Works by Force Account 8.87 16.91 25.78 II Soils Laboratory 0.08 0.70 0.78 III Training 0.17 1.12 1.29 IV Reconstruction of Section I & II of Kigali-Gatuna Road 1/ 2.15 14.44 16.59 V Consulting Services 0.37 3.44 3.81 Total Base Cost 11.64 36.61 48.25 Contingencies Physical (on Item IV) 0.22 1.52 1.74 Price 2.17 6.98 9.15 Total Cost 2/ 14.03 45.11 59.14 Financing Plan Local Foreisn Total Z of -uS Million-- Total Proposed IDA Credit and African Facility Credit - 26.0 26.0 44 IDA Fifth Highway Project 3/ - 5.0 5.0 8 UNDP 1.0 1.0 2 France - 0.4 0.4 1 BADEA - 7.6 7.6 10 wFP 0.5 1.4 1.9 3 Government-Recurrent Budget 11.3 3.7 15.0 25 Development Budget 2.2 - 2.2 4 Total Financing 14.0 45.1 59.1 100 Estimated D