Cameroon - Transport Sector Project

Document of The World Bank Report No. 15550HCM STAFF APPRAISAL REPORT REPUBLIC OF CAMEROON TRANSPORT SECTOR PROJECT APRIL 18, 1996 Infrastructure Operations Division Central Africa and Indian Ocean Department Africa Region  CURRENCY EQUIVALENTS (as of April . 1996) Currency Unt = CFA Franc (CFAF) USSI = CFAF505 CFAF I million USS1 9140 WEIGII'S AND MltASURES Metric Systen ABBREVIATIONS AND ACRONYMS ASECNA = Agence pour la Steuritd Acricnne cn Afrique ct do Madagascar (Air Safet, Agency for Africa and Madagascar) AGCD = Agenec Gcncralc dc la Coopcration au Dcvcloppcmcnt (Bclgian Gencral Agency for Cooperation and Development) BMZ = Bundcsministenum rur Zasammcnarbcit (German Ministry for Cooperation) CAMAIR = Camcroon Airlincs CAMSHIP = Cameroon Shippiig Lines CAMTAINER = Socictc Nationalc de Transport ct de Transit du Caincroun (Camcroon Container Transport and Freght Forwardcr Company) CAR = Republique Centrafricaine (Ccntral African Republic) CAS = Contry Assistance Strategy CFD = Caissc Franraisc dc Dhselopmcment (Frcnch Developucrn Agency) CIF = Cost, Insurance Freight CNCC = Conseil National dcs Chargcurs hi Cameroun (Shippers' Council) CNIC = Chanrie Naval et Indusirtel du ti amcroun (Cameroon Dockyard) CNPS = Caisse Nutionalc dc Prcvoyanee Socialc (National Socal Secunty Fund) DhlN =Dcveloping NIaritime Nations DGTC = Direction GG&rrale des Grands Trav-a-s l Camcroun (General Directorate for Large Works ot Carneroon) DPO = Deferred P'riva-trattnn Opuon ERC = Economic Recovery Credit ESOP = Employce Stock Owncrship Program EU = European Union FAC = Fonds d'Aide et do Coop6ration (Frcnch Copecration Fund) FOB = Frec on Board 1y = Fiscal Yar GDP = Gross Domestic Product GOC =Govcmment of Cameroon IBRD = Inteniational Bank for Reconstruction and Dcvelopment ICAO = International Civl Aviatin Organizetion ICB = International Competitive Bidding IDA - Intemational D,eslopnt Association IMPF =lntenruainal Monetary Fund IRU = International Road Union LABOGENIE = Laboratoire National do Gdnie Civil (National Road Laboratory) MATGENIE = Pare National do Matericl dc Geise Civil (Equipment Pool) MC =Managemcnt Contract MINEFI = Ministerc dc I'Econrmic ct dcs Finances (Ministry of Economy and Finance) MINT = Mmnistdre des Transports (Ministry of Transport) MINTP = Ministmr dcs Travaux Publics (Muiistry of Public Works) NCB = NaLional Compctitive Bidding OECF = Overseas Economic Cooperation Fund ONPC = Office National des Pors du Cameroun (Cameroon National Port Authority) PE = Public Enterpise PIP = Public Investmet Program PPA = Participatory Poverty Analysis PPF = Project Preparation Facility PSO = Public Service Obligation REER = Rel Effective Evehange Rate RFGII:ERCAM = R&grc Natiunalc dcs Chemins do Fcr du Cameroun (Cameroon Railuays) SAC = Stnuctural Adjustment Crcdit SAL = StruCtLral Adjustment Loan SAP = Structural Adjustment Prognam SAR = Staff Appraisal Report SME = Small and Medium Entcrprisc SNH = Soci&6t Nationale d'H-drocarburcs (National Oil Company) SNI = Societe Nationale di'lnestissnmcnt (Slatc Holding Company) SOCAMAC = Sociott d'Aninagrcn,et ct do Manuaiti,on du Camcroun (Port Handling Company of Cameroon) se ruc = Socicte dc Transport Urbain du Camcroun (Urban Public Transport Company) SSATP = Sub-Saharan African Transport Policy Program TICU = Ccilule dc Coordination du Projct Sctoriel des Transports (Transport Intrmministerial Coordination tnie) TIR = Transit Inicnaitonal Roulier (Intcrnational Road Transit) TIPAC = Tr-nsit In.tcrEtats dcs Pays dc l'Afriquc Cciralc (Central African Countries Regional Transit) TSP = Transport Seetor Project TSTA = Transport Scctor Technical Assistance Project UDEAC =Union Douanirc et Ecoro.niquie de l'Afriquie Centralc (Central Africa Customs and Econoomic U iion) UNC1-AD = Umnted Nations Confrcnce om Trade and Dcvelopment FISCAL YEAR Jlilv I - Juine 30  REPUBLIC OF CAMEROON TRANSPORT SECTOR PROJECT STAFF APPRAISAL REPORT Table of Contents Page CREDIT AND PROJECT SUMMARY ............................i 1. COUNTRY BACKGROUND .1 2. TRANSPORT SECTOR INSTITUTIONAL ASSESSMENT .2 3. TRANSPORT SECTOR PROGRAM 1.. A. Program Objectives .1 B. Program Description .12 C. Sector Investment Program .21 D. Technical Assistance, Training and Seminars .25 E. Program Implementation .26 Procurement .26 Disbursements .29 Accounting and Auditing .31 Program and Project Implementation .32 Reporting and Monitoring ................ . 33 Environmental Aspects ................ 34 Program Benefits ................ 35 Program Risks ................ 40 4. IDA ASSISTANCE STRATEGY TO THE TRANSPORT SECTOR . .43 A. Lessons Learned from Past Experience .43 B. Rationale for IDA Involvement .44 C. IDA Assistance Strategy to the Transport Sector .45 5. AGREEMENTS REACHED, CONDITIONS AND RECOMMENDATION 46 This Report is based on the findings of a reappraisal mission carried out in May/June 1995 by Mmes./Messrs. Jean-Noel Guillossou (Task Manager, Transport Economist, AF3IN); Kingson Apara (Principal Project Officer, Resident Mission); Aubert Zohore (Financial Analyst, AF3IN); Abdelmoula Ghzala (Highway Engineer, AF31N); Gerard Paget (Highway Engineer, AFTES); Karim-Jacques Budin (Railway Specialist, TWUTD); Marc Juhel (Port Specialist, TWUTD); Patrick Bultynck (AFTES, Urban Transport Specialist); Ellis Juan (Private Sector Development Specialist, CFSPS); Claudine Morin (Lawyer, LEGAF); and Hakan Wilson (PSD). Mr. Ian Heggie (TWUTD) is Lead Advisor; Ms. Sunita Kikeri (PSD), Ms. Brigitta Mitchell (AF41N) and Mr. Hans Peters (TWUTD) are Peer Reviewers. Ms. Maryvonne Plessis-Fraissard (AF3IN) is the Division Chief. Mr. Andrew Rogerson (AF3) is the Department Director.  Table of Contents SCHEDULES Page 1. Letter of Sector Policy and Matrix of Actions .............................................................. 49 2. Benefits resulting from the Privatization/Liquidation of Transport Public Enterprises .................. 60 3. Action Plan and Timetable for the Transit Component of the UDEAC Transport Reform Program .............................................................. 61 4. Action Plan to Overhaul the Customs System .............................................................. 62 5. National Port Authority's (ONPC) Investment Plan .............................................................. 65 6. Status of Implementation of the Transport Sector Technical Assistance Project ........................... 66 7. Detailed Project Costs .............................................................. 68 8. Outline Terms of Reference of Technical Assistance .............................................................. 72 9. Training .............................................................. 77 10. Project Implementation Schedule .............................................................. 79 11. Project Performance Indicators .............................................................. 84 12. IDA Supervision Plan .............................................................. 85 13. Economic Evaluation of the Overall Road Maintenance Program ................................................ 86 14. Economic Evaluation of the First-year Road Maintenance Program ............................................ 88 15 Economic Analysis of the Rural Transport Infrastructure Program ............................................. 90 16. Economic Evaluation of the Rehabilitation of the Access Channel to the Port of Douala .............. 92 17. Financial Evaluation of ONPC .............................................................. 95 18. Selected Documents in the Project File .............................................................. 99 MAPS IBRD No. 24837 and 24838 (Priority Road Network) IBRD No. 24029 (UDEAC Infrastructure Communications Network)  Credit and Project Summary i REPUBLIC OF CAMEROON TRANSPORT SECTOR PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Cameroon Guarantor: Not Applicable Implementing Agencies: Ministry of Economy and Finance Ministry of Public Works Ministry of Transport Transport Interninisterial Coordination Unit Beneficiary: Not Applicable Poverty: Program of Targeted Interventions Amount: SDR 41.7 million (US$ 60.7 million equivalent) Terms: Standard IDA terms with a maturity of 40 years Commitment Fee: 0.50% on undisbursed credit balances, beginning 60 days after signing, less any waiver Onlending Terms: Not Applicable Financing Plan: See para. 3.41 Net Present Value: Values below are given for new projects only but not for on-going projects included in the sector investment program. Economic Rate of Retum of the road maintenance strategy applied to the overall priority network: above 100 percent. Economic Rate of Return of the road rehabilitation program financed by IDA: Rehabilitation Program Paved Roads Earth Roads 74% 52% 100% Economic Rate of Retum of the Rural Transport Infrastructure Maintenance Program: above 12 percent.  Cameroon - Transport Sector PrograMi Net Present Value discounted at 12 percent of the rehabilitation of the access channel to the port of Douala 23 - Cost of Maintenance s1 Dredging j -i- D/ \\ MCFAF2,0001m3 = 13 ~~~~~~-U-CFAF2,600hm3 3ji . . .