Guinea-Bissau - Roads Project

Document of The World Bank FOR OF]FICIAL USE ONLY Report No. 2215-GUB GUINEA-BISSAU PROPOSED F'IRST ROADS PROJECT STAFF APPRAISAL REPORT January 10, 1979 Western Africa Projects Department Highways 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 EQUIVALENTS Currency Unit Guinean Peso (GP) G.P. 1.00 = US$0.0286 US$1.00 = GP 35 G.P. 1.0 million US$28,571 FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES: Metric System Metric US Equivalents 1 kilometer (km) = 0.62 miles (mi) 1 meter (m) 2 3.28 feet (ft) 1 square kilometer (km ) 0.386 square miles (sq mi) 1 hectare (ha) = 2.47 acres 1 liter (1) = 0.22 Imp. gallons = 0.26 US gallons 1 kilogram (kg) = 2.205 pounds 1 ton = 2,205 pounds ABBREVIATIONS AND ACRONYMS adt average daily traffic AfDB African Development Bank AP Armazens do Povo ("The People's Store") CCIH Commissariat of Commerce Industry and Handicrafts CECP Commissariat for Economic Coordination and Plan CPW Commissariat for Public Works, Construction and Urban Affairs CTT Commissariat for Transport and Tourism EDF European Development Fund FAC Fonds d'Aide et de Cooperation FAO Food and Agriculture Organization of the United Nations ICAO International Civil Aviation Organization LIA Guinea-Bissau Airlines PAIGC African Party for the Independence of Guinea and Cape Verde SIDA Swedish International Development Agency UNDP United Nations Development Program voc vehicle operating costs  FOR OFFICIAL U GUINEA-BISSAU PROPOSED FIRST ROADS PROJECT STAFF APPRAISAL REPORT TABLE OF CONTENTS Page No. I. THE TRANSPORT SECTOR .. . ....................... 1 A. The Land and the Econiomy. . . 1 B. The Transport System ........ . .. .. . . .. . 1 C. Transport Policy and Planning 4 D. Transport Services. . . 5 E. Role of the Bank Group......... 6 II. THE HIGHWAY SUBSECTOR .. 7 A. The Network. .. 7 B. Traffic.. 8 C . Administration ........ ........ . ....... ....... 9 D. Road Planning.. . 9 E. Engineering........... 11 F. Staffing and Training . ..11 G. Construction and Upgrading . . .12 H. Maintenance ...12 I. Equipment............. 13 J. Budgeting and Financing . . .13 III. THE PROJECT .15 A. Project Objectives and Scope . . ..... 15 B. Project Description . . . ..... 15 C. Cost Estimate . . .22 D. Implementation . . .23 E. Financing and Disbursements . . .25 F. Procurement . . .26 G. Project Monitoring . . .27 This report has been prepared by Messrs. P.M. Cadario (Economist), and C.J.D. Lane (Engineer) on the basis of an appraisal mission in July 1978. This document has a restricted distribution andi may be used by recipients only in the performance of their official duties. Its contents may not otthrwise be disclosed without World Bank authori_tion.  TABLE OF CONTENTS (Continued) Page No. IV. ECONOMIC APPRAISAL ....................................... 27 A. General .. ........ 27 B. Rehabilitation and Maintenance of Paved Roads ....... 28 C. Gravel Roads - South ..... ........................... 30 D. Gravel Roads - North ..... ........................... 31 E. Project Beneficiaries ..... .......................... 31 F. Project Risks ...... ................................. 32 V. RECOMMENDATIONS .......................................... 33 ANNEXES I. Cost Estimate and Financing II. Outline Terms of Reference for Consultant Services III. Equipment and Staffing Requirements RELATED DOCUMENTS AND DATA AVAILABLE IN THE PROJECT FILE MAP IBRD 13626R - Guinea-Bissau: First Roads Project  GUINEA-BISSAU PROPOSED FIRST ROADS PROJECT STAFF APPRAISAL REPORT I. The Transport Sector A. The Land and the Economy 2 1.01 Guinea-Bissau, with an area of 36,125 km , is situated on the west coast of Africa, bordered by Senegal and the Republic of Guinea. In addition to the mainland, it includes the Bijagos Archipelago and a string of coastal islands. An important geographic feature of the country is the deep penetra- tion of seven estuary complexes (Rio Cacheu, Rio Mansoa, Rio Geba, Rio Grande de Buba, Rio Tombali, Rio Cujimba and Rio Cacine). All of these rivers are tidal and provide navigable waterways to much of Guinea-Bissau except the northeast. 1.02 The Government estimates the population at about 900,000, of which about 100,000 live in or near Bissau, the capital. Per capita incomes for 1977 are estimated at US$160, with tlhe monetized sector accounting for 70% of GNP. Of the total population, 90% is supported by agriculture. Government administration provides about 62% of monetary sector employment, which totals about 24,400 jobs. A small industrial sector produces beer and soft drinks, jam, wood parquet and clothing. Bauxite reserves in the east (near the Guinean border) and phosphates in the north (near the Senegalese border) might prove commercially attractive in the longer term. 1.03 The Government's main priority is the stimulation of agriculture, the country's principal economic acti.vity and source of most of Guinea-Bissau's foreign exchange earnings. The war of independence (1963-1974) dislocated the farm population and destroyed much of the productive infrastructure, especially the dams in the Catio region which protected the rice-paddies from salt-water intrusion. Like its neighbors, Guinea-Bissau has suffered from the Sahelian drought which has affected not only the groundnut, maize and livestock pro- ducers of the north and interior but also the wet rice cultivators of the south and the coastal plain. Modest exports of rice, the main staple crop, in the 1950's have been replaced by massive cereal imports in recent years, mainly with the continued help of international aid. FAO Food Security Assistance Scheme studies suggest that while the south could most easily meet cereal needs in the short-term, only the north offers the crop diversification potential necessary for long-term food security. B. The Transport System (Map IBRD 13626R) 1.04 Guinea-Bissau's internal transport system consists of a road network dating from colonial times (described in Chapter 2), a system of waterborne transportation with many small river ports, an international airport and numerous landing strips, seven of which are paved. The condition of the  - 2 - transport system and its organizational problems make it a serious bottleneck to the country's economic development, since communications with the poten- tially productive agricultural areas are inadequate. Water Transport 1.05 The coastal shipping fleet, based in Bissau, plays an important role in moving goods in the country. Its route network covers the important southern rice-growing area and the ground-nut areas of the east via Babadinca. The fleet is owned by two state trading companies (para. 1.18) and consists of 78 units: 33 powered cargo vessels, 24 barges, and 21 passenger craft. Cargo capacities range from 13 to 150 tons. From the sketchy financial records available, it appears unlikely that the fleet is economic to operate, since the age of the vessels, the lack of spare parts and insufficient fleet manage- ment limit its productivity to less than 20% of its theoretical capacity. The existing shipping tariffs, which are regulated by the Government, are barely sufficient to cover wages, fuel and maintenance costs. They are now under review. 1.06 The port facilities on the inland waterway system are unsatisfactory. Many wooden piers are in poor condition and the shallow water alongside does not permit loading or discharging at low tide. The Government is plann- ing to improve these small ports, and the proposed project supports this effort (para. 3.11). The General Transport Study (para. 2.13) will also consider water transport. 1.07 The port of Bissau lies approximately 50 nautical miles east of Caio Point, where the pilot station and the radio station for international maritime traffic are located. Pilotage is compulsory through the Canal do Geba, the approach channel, which has several shallows, some with less than 5 m of water at low tide. Access to Bissau is difficult: the radio-beacon is out of order and the channel buoys are out of position. 1.08 The principal port facility is a 130 m T-shaped pier (the Trade Quay), which handles both deep-sea ships and smaller coastal vessels. Con- siderable siltation is taking place due to tidal action, but as the port has no dredge, no maintenance dredging is possible. The reinforced concrete structure is in poor condition with extensive exposure of reinforcement and actual impact damage remaining unrepaired. There is no system of fendering of any kind, and the piles supporting the quay are deteriorating as well. Transit sheds are inconveniently located 500 m away, with covered storage restricted to imports, while export cargoes are either delivered directly to the ship or stored in the open. This and the lack of modern equipment and good port organization pose a major cargo-handling problem. In mid-1979, the European Development Fund will provide new handling equipment which will appreciably increase the port's throughput capacity. The port installations also include a second T-shaped quay, used mainly by the fishing fleet and Guinemar's passenger boats (para. 1.19), and a 300 m quay, unusable at low water, which serves the coastal fleet.  - 3 - 1.09 Recent port total throughput at Bissau is shown below: Port of Bissau-Annual Cargo Throughput (tons) 1975 1976 1Q77 IMPORTS 55,713 52,474 51,912 (of which: general cargo 15,665 19,356 22,362) ( cement 14,510 4,565 8,796) ( maize 6,687 - ---) ( rice --- 18,921 9,973) EXPORTS 20,969 22,137 17,934 (of which: groundnuts 6,664 6,033 5,000) ( coconut 6,272 4,539 5,902) ( forest products 4,454 3,110 1,410) Throughput 76,682 74,611 69)846 Source: Port Authority of Bissau. Before independence, the port's highest throughput was approximately 130,000 tons, which included imports for the Portuguese army. 1.10 Receipts from port traffic amounted to GP 32.2 million (US$0.92 million) in 1976 and GP 34.9 million (US$1.03 million) in 1977. Detailed financial records of the port's operation are not available, but expenses in these years totalled GP 41.8 million and GP 28.2 million respectively. Import cargo costs at the port are estimated at about GP 146.84 (US$4.32) per ton of cargo landed, not includin,g the compulsory pilotage fees and the shipping agency charges. The handling fee per ton of export cargo is esti- mated at GP 31.84 (US$0.99). The import landing fee is low by comparison to countries with advanced and mechanized handling equipment and higher labor rates, but average turnaround at Bissau--about 3 days--is long by interna- tional standards given the small freight volumes. 1.11 Although the Government has in hand a proposal for a new US$35 mil- lion, deep water port, the studies do not establish the economic or technical feasibility of such a large and expensive installation. Guinea-Bissau's economy is still disrupted after the war of independence; however, there is little evidence to support the optimistic traffic forecasts made in a recent study. Hence, the Government has asked the study's consultants to review their proposals, evaluate improvements to the existing port (including dredg- ing as an interim step) taking into account comments from the Portuguese Ports Authority and IDA, and identify a smaller project.  -4- Airports and Civil Aviation 1.12 Bissalanca Airport, 12 km from Bissau, has a 2800 m runway, two adequate terminals for domestic and international flights, and two control towers, one recently constructed. There are regular services to Lisbon, Moscow, Algiers, and Dakar. With about 30 international aircraft movements per month (1200 passengers and about 25 t of air cargo), there appear to be no capacity problems, but the airport would need a runway extension, improved lighting and an instrument landing system to meet ICAO Class 1 standards. In 1978, the Government received Kuwait Fund financing for these improvements. There are over 60 landing strips in the country, built by the former military administration, of which seven are paved. State-owned Lineas Aereas da Guine-Bissau (LIA) operates 3 DC-3's, 3 Dorniers, and 3 Cessna V206's for internal flights. An HS-748 has recently been purchased (50% by commercial loan, 50% by British aid) for international use. C. Transport Policy and Planning 1.13 Government transport policy is set out in a five-point general statement of objectives approved by the November 1977 Third Congress of the ruling African Party for the Independence of Guinea and Cape Verde (PAIGC): "a) to give the sector the infrastructure necessary for the development process and to integrate the economies of the two countries; b) to increase State control over the means of transport; c) to assure international maritime links between Guinea- Bissau and Cape Verde by a jointly-owned independent fleet; d) to give the countries a road, coastal shipping and aviation sector which permits and promotes efficiency; e) to rationalize the vehicle fleet and guarantee its main- tenance and repair." 1.14 The Commissariat for Economic Coordination and Plan (CECP) oversees the economy and the government sector, in theory vetting all development projects, especially those involving foreign aid. A small planning team has begun to work on a development plan expected to be presented to the 1980 PAIGC Congress for approval. Preliminary indications are that the plan will adopt a regional approach, emphasizing rural development. Considerable effort will be needed in the next stage - translating the plan into feasible and justified projects.  1.15 Since CECP does not enjoy a "super-ministry" status, in practice the three executing ministries in the transport sector exercise considerable independence in sector planning and project execution. The Commissariat for Public Works, Construction and Urban Affairs (CPW) is responsible for road construction and maintenance. It also acts as contact ministry for the recently initiated General Transport Study, financed by the African Develop- ment Fund, which is expected to be completed in late 1979 by consultants Lavalin (Canada). The Commissariat for Transport and Tourism (CTT) oversees ports, coastal shipping, aviation and road transport, both directly and through reporting agencies such as LIA, the Bissau Port Authority and Silo Diata, the state bus company, (para. 1.19). It also comments on all proposed road investments. The Commissariat for Commerce, Industry and Handicrafts (CCIH) also is involved, through its control over Armazens do Povo ("The People's Store", AP) and Socomi, the state trading companies. These two firms run virtually all shipping and trucking in Guinea-Bissau, integrated into their commercial activities. There is little coordination between these ministries at the working level, with interministerial contact occurring only at the highest decision-making level, the Council of Commissars, which is the executive body of the PAIGC. 1.16 Planners' attention has been directed to the stimulation of the foreign-exchange-saving and-earning sectors (agriculture), with transport planning addressed through the consultants' study. Transport sector institu- tions are undeveloped, and establishing the capacity to plan and execute road rehabilitation and maintenance in this first IDA project is an important step. 1.17 New transport investments depend on foreign assistance: they include the new road from Bissau to the airport (the Netherlands), the Jugudul Bambadinca road (AfDB), new ferries, port equipment, and self-propelled barges (European Development Fund (EDF)), repair of small ships (Federal Republic of Germany) and passenger boats (Sweden). The EDF has also financed detailed engineering for construction of the Bambadinca-Xitole-Quebo road, which they propose to finance, possibly with the Saudi Fund. D. Transport Services 1.18 "For hire" transport is dominated by AP and Socomi (para. 1.15) (coastal shipping and trucking) and by the army, whose trucks distribute petroleum products and help collect groundnuts during the harvest. The financial records of the trading companies do not permit a detailed analysis of transport costs or of the efficiency of transport operations. A consultant estimated 1976 internal freight movement at 80,000 tons for the entire country, roughly two-thirds from the capital to the interior. Because of the poor condition of the roads, the limited truck fleet, and the lack of reliable connections to the southern regions (para. 2.03), water transport accounts for about 75% of this traffic. Although Government policy discour- ages private participation in road transport, a small number of private truckers operate old 4-6 t trucks. They are often hired by AP and Socomi  - 6 - during peak seasons (about four months each year), at tariffs averaging about G.P. 1500 per day (US$43). In the off-season, competition among the truckers almost halves these rates. Guinean private truck owners are subject to fairly high license fees, and also have great difficulty getting spare parts; hence, their number is small. Although a few Senegalese and Gambian traders operate in the north, exchanging simple consumer goods for groundnuts and other farm products, their role in road transport is minor. 1.19 Domestic passenger transport is provided to all parts of the country. In addition to regular LIA flights to Cufar, the south is served by Guinemar, a state-owned company, which operates coastal passenger services from Bissau to Buba and Bolama using five new Finnish-built vessels and several small, older boats. Silo Diata, the state road transport company, operates modern, Swedish-built buses in Bissau and from Bissau to the interior. These bus ser- vices are fairly reliable in the dry season and are well patronized. Private cars and small vans compete near the capital, but they do not often venture into more isolated areas where road conditions are poor. E. Role of the Bank Group 1.20 The proposed project is IDA's first in Guinea-Bissau, which joined the Bank Group in March 1977. The project was identified by IDA staff in December 1977 and prepared by an IDA pre-appraisal mission and the Govern- ment in March 1978. The preappraisal mission included three IDA-financed consultants (for highway engineering, mechanical equipment, and coastal shipping) who worked with IDA staff and CPW to define the project. The project was appraised in July 1978. 1.21 IDA is primarily supporting the rural sector: road rehabilitation is vital for agricultural development, providing the link between major producing areas and Bissau, the capital. The proposed project is the first step in a continuous road rehabilitation and maintenance effort needed in Guinea-Bissau. Existing CPW equipment and the IDA-financed fleet should be adequate to expand highway maintenance over the entire country. Financial problems may require continued donor support in the future, and the three years of technical assistance included in the proposed project will only partially meet the sector's manpower requirements. IDA and the Government will review progress on training as the project is being executed, in light of the experience acquired by CPW staff, the physical output of the brigades, and other training needs which may become evident as higher level staff return from professional training abroad. 1.22 IDA financed the mission of a coastal shipping expert to review the sub-sector and assess its short- and medium-term role. He concluded that properly organized water transport offered good possibilities for the shipment of bulk commodities to many parts of the country. His report is being trans- lated and will be sent to the Government for review.  - 7 - II. THE HIGHWAY SUB-SECTOR A. The Network 2.01 The network comprises 3,065 km of roads, of which 520 km or 17% are paved. The network density, 0.084 km/km , is similar to that of other coun- tries in Western Africa. Taken with the inland and coastal waterways, its extent is largely adequate, but its poor condition limits its effective role in Guinea-Bissau's economy. 2.02 There is no official functional or administrative classification of roads in Guinea-Bissau. For purposes of this report, the rural road network has been divided into trunk roads, regional roads and feeder roads as follows: (i) trunk roads are roads linking regional centers to the capital, and/or providing main links to neighboring countries; (ii) regional roads are roads linking regional centers together and with the trunk road net:work; (iii) feeder roads are the remainder of the network, providing access to those villages and agricultural areas not connected to the main roads and serving mostly local transport needs. Thus defined, the network is divided as follows: Paved Gravel/Earth Total Trunk Roads 425 405 830 Regional Roads 95 920 1,015 Feeder Roads - 1,220 1,220 Total 520 2,545 3,065 2.03 The high percentage of paved roads in the network is a consequence of the armed struggle preceding independence in 1975. Most paving was done in 1970-72 by the Portuguese provincial administration and army as a deterrent against planting land mines. Whereas the layout of the network as a whole reflects peacetime needs adequately, t'he paving of individual sections was done from purely military considerations. Parts of the east-west and north- south corridors remain as earth roads,, some less important sections in the center and south are paved, and some populated areas (especially in the south) have no passable roads at all. Coastal shipping, now the main transport mode in the south on account of the difficult road conditions, is well-adapted to  - 8 - the shipment of bulk commodities such as rice, the main crop. But water transport has proven to be ill-suited to agricultural extension and the dis- tribution of farm inputs, the provision of health and social service, and general administration in the Buba and Tombali regions. Transport, both in- ternally and to the capital, is difficult. Even so, at least 40% of the rice now commercialized in the south moves by road to river trans-shipment points. 2.04 The paved roads have a 6 m-wide pavement with 0.5 m to 1.0 m shoulders. The asphalt surfacing is usually single, but occasionally double surface treatment, and there are sections which have only received a sand seal surface on the laterite base. 2.05 The earth and gravel roads are not built to uniform standards. Roadway width varies from single-lane, 3 m width to double-lane, 7 m forma- tion width. Drainage is deficient nearly everywhere, with culverts of in- sufficient size or in disrepair, and turnout drains lacking. B. Traffic 2.06 Traffic volumes are low, even on trunk roads. The Government un- dertook representative traffic counts for the first time in May 1978. The most trafficked road, between Nhacra and Safim, carries 250 vpd. Traffic on the main east-west axis (Bissau-Bafata-Guinea border) varies from about 110 between Mansaba and Bafata to 44 between Gaba and Pitche. The main north- south road (Bafata-Bambadinca-Xitole-Quebo to Cacine and Catio) carries very little traffic (estimated at 25 vpd). Regional roads in the north appear to carry 20-40 vpd, in the south 20-25 vpd. 2.07 There are no valid statistics on the size of the vehicle fleet. In 1971 it was estimated at about 2,000 cars and 1,000 trucks and buses. Vehicle imports since then are shown below: ---------- Vehicle Imports ------------ Year Cars Trucks Buses Total 1972 na na na 178 1973 na na na 277 1974 153 14 0 167 1975 434 41 0 475 1976 322 151 21 494 1977 260 61 3 324 1978 (I-VI) na na na 225 Source: Statistical Bulletin; Viacao et Automobilismo. The present fleet is estimated at some 3,000 vehicles. Since independence, the fleet has grown, recently with an increase in the number of passenger cars, and the public sector has accounted for 70% of new registrations, both of cars and of trucks. The two state commercial enterprises, Socomi and Armazens do Povo, own altogether 119 trucks. Of these, 42% have 9 t or more  - 9 - load capacity. The Government haS recently signed an agreement with a French company to construct a plant to assemble up to 500 small utility vehicles per year. 2.08 The Government has established a 10-t axle load limit for all highways in the country, the same as in neighboring Senegal, and is trying to limit the gross weight of foreign vehicles entering the country to 15 t (out of consideration for the pavement and for old culverts and bridges). The limitation is difficult to enforce, and CTT is planning to establish a special road service to police axle load restrictions and road safety rules. The proposed project would assist this effort (para. 3.19). C. Administration (Chart IBRD 19377) 2.09 The Roads Section in the Commissariat for Public Works, Construction -and Urban Affairs is responsible for all roads, urban and rural, in the country. The administration is centered in Bissau, mobile work brigades being directed and administered from headquarters, with small and ill-equipped sub-depots at Bula, Gabu, San Domingo and Farim. 2.10 Administrative procedures are those established by the Portuguese administration. They are slow and cumbersome, and supplies of fuel and spare parts to the field teams are further delayed by poor communications. Decision making, however, is centralized and quick, both within CPW and between CPW and other ministries. The project will have its own administrative staff and pro- cedures and will also have the advantage of radio communication with the bri- gades enabling rapid ordering of spare parts. 2.11 The army occasionally assists the CPW in road works. In 1977 a joint work brigade attempted to improve the Mansaba-Bafata road using labor- intensive methods. Owing to poor management, inadequate compaction and lack of maintenance, the quality of the road is now poor. A number of agricultural development projects are being carried out in the country, but none contain road components. Thus, the only entity in the country concerned with roads is the CPW. D. Road Planning 2.12 There is at present no long-term highway planning. All projects selected to date have been chosen t:o fill obvious gaps in the transport network. Feasibility studies have not been carried out, and there is no investment forecast based on economic criteria. 2.13 The Portuguese administration in 1972 established a development plan for the country's road network, largely based on military requirements. The plan was only executed in part and no longer remains a valid basis for planning. However, CPW has recently selected consultants Lavalin (Canada) to carry out a country-wide General Transport Study and to produce a trans- portation master plan. The study, financed by the African Development Fund, is expected to be completed by 1979. It may form the basis for a transport investment program in the country's first development plan. The Government  COMMISSARIAT OF STATE FOR PUBLIC WORKS, CONSTRUCTION AND YRBAN AFFAIRS - z ORGANIZATION CHART Commissar (Minister) Directorate of Directorate of Directorate of Workshops Direcntoratao f Directorate of Urban Affairs Public buildings & Mobile Equipment Adrnnistration ce= t 1 I ~~~~~~~~~~~~~~~~~~~~~~~~~~L.lboratory Main Workshop Waterhouse Bridges Section Designi Section Roads Section 4 Sub Depots * 2 F Mainte J 4 Asphalt Matintenance - 1 1 1~~~~am Fieldi Teams 6 Mobile Repair I I 5 Laterite M iintenaiice Teants 3 F Fieltd Teamts FIRST ROADS PROJECT Workshop IServices PaedRod Laterite Lalerite 1Bissau1 Brigade Brigade Beiyadle Bafata So l North World Bank -- 19377  - 11 - has agreed to keep IDA informed of the progress of the study and to discuss with IDA its conclusions and recommendations. Planning of the development of the rural economy in key agricultural areas should be undertaken to determine the basis for a suitable long-term transport investment program. E. Engineering 2.14 There are at present no official design standards for roads but the subject is being addressed in the Transport Study (para. 2.13). The asphalted part of the network has been built with 6 m-wide pavements and 0.5 m-1.0 m shoulders. The part of the Buba-Catio road presently being upgraded by CPW features a 9.0 m-wide formation withl a compacted laterite pavement; minor upgrading works underway in other parts of the country use varying standards. 2.15 The Road Section of CPW has a design division which is mainly concerned with surveying and other topographic work. It has not done any road design work since independence, due to the lack of qualified engineers. All road design work has been carried out by foreign consultants and financed by foreign aid. The presently avai:Lable engineering covers the Bambadinca- Xitole-Quebo road (76 km) and the Jugudul-Bambadinca link (38 Km). There are no local consultants capable of undertaking road design. 2.16f It appears important, before the Government embarks upon a major denor-financed construction program, and while road expenditures are still at their present low level, (para. 2.29) to introduce economic considerations into road design. While the master plan study should assist the Government in this, it still seems that the CPW is aiming at excessive, paved standards on main links where projected traffic volumes are unlikely to justify them. Therefore, consultants under the project will adopt uniform design standards in agreement with the Government andl its general transport study consultants, related to expected traffic volumes. 2.17 The CPW has a Materials Laboratory in its headquarters in Bissau. It is adequately staffed and equippeWd, and has assisted the Roads Section on recent minor projects involving marshland crossings. It would be available for the proposed project and capable of handling the required workload. F. Staffing and Training 2.18 All staff engaged in road works are Guinean. There is only one graduate engineer, the head of the Section, who received his training in the German Democratic Republic, graduating in 1975. The Road Section receives some expatriate technical assistance: two mechanics from East Germany are assisting the CPW mechanical workshop, and a French consultant now oversees workshop activities. 2.19 In headquarters, the staff comprises 21 design and topographic staff, of which 5 are qualified draftsmen and only one a surveyor. The bridge division is staffed with only one administrator and an assistant. The laboratory is adequately staffed, with a senior soil technician and four assistants.  - 12 - 2.20 Of a total CPW workforce of 3000, the total roads field staff comprises about 400, of which 126 are classified as artisans, operators and field mechanics. The level and experience of field staff, most importantly of brigade foremen, varies widely, and work quality and output rates are conse- quently far from uniform. 2.21 There is no formal training program for roads staff. Such training as is going on is strictly on-the-job. As the supervision of field work exercised from headquarters is very limited, bad work practices continue unchecked. This is particularly the case for equipment operation, where breakdowns occur due to mishandling. The overall organization of work also varies widely from brigade to brigade. The project will address these defi- ciencies by on-the-job training programs for mechanics, brigade foremen, and equipment operators, complemented by classroom instruction (paras. 3.22-3.23 ). G. Construction and Upgrading 2.22 New construction undertaken since independence is limited to a 14-km paved road on the island of Bubaque, to support tourism development, and the 12 km dual carriageway link to the airport, which is under construction. There are no domestic contractors capable of road works, and only one small foreign contractor is established in the country. While the Government is not opposed to employing contractors for road works, encouraging the develop- ment of a domestic contracting industry is not a priority. It would appear that, at least in the foreseeable future, minor scattered construction, upgrading and resealing works will be done by force account. In view of the country's financial situation, major road works will have to be financed from foreign aid under the contracting rules applied by the respective financing agencies. In 1979, tenders are expected to be invited for construction of two roads, Bambadinca-Xitole (36 km), financed by the European Development Fund and Jugudul-Bambadinca, (38 km) financed by the African Development Fund. 2.23 The CPW has undertaken a limited effort of simple reconstruction and upgrading of key sections of the network. This includes the border road with Senegal, the last 20 km to the border of Guinea from Pitche, and the link Buba-Batambali-Empada. These works mainly include reconstruction of the formation and regravelling, together with some rectification of drainage. It is estimated that on average, the upgrading/reconstruction units now complete about 30 km per working season of 8 months, less than 200 m per working day. H. Maintenance 2.24 About half of the present CPW maintenance efforts are concentrated on the paved network. Surface damage is widespread, but the base has nearly everywhere stood up well, maintaining a good cross section. The CPW efforts have, quite justifiably, been directed towards surface patching to prevent water from penetrating into the base and causing structural damage which would later prove much more expensive to repair than the surface itself. The CPW has been able to arrest such damage, but the quality of maintenance work is not satisfactory, and the effort requires frequent repetition in order to  - 13 - provide effective protection for the base. The main reasons for this are the use of primitive equipment and work methods. The project will provide equipment, materials and training for a program of mechanized surface treatment. 2.25 Maintenance of the grave:L and earth road network is sporadic. The CPW brigades being mainly occupied with rehabilitation works, there is little effort being made to provide proper routine and periodic maintenance. As a result, most of the important links are in a bad condition and many feeder roads have deteriorated to tracks which are often impassable to motor vehicles in the rainy season. 2.26 Such routine maintenance works as are carried out consist of repair work on culverts and bridges and occasional grading. There is no organized routine maintenance; cleaning of ditches and maintenance of verges is occa- sionally carried out by the district authorities with local volunteer labor. This practice is not widespread, however, due to its association with forced labor under the colonial administration, and routine cleaning is quite defi- cient. Under the project, routine maintenance will be organized by CPW and gradually introduced on the project roads. I. Equipment 2.27 CPW presently has a fleet. of heavy construction equipment numbering about 50 items. Their ages vary from 1-2 years up to 18 years. Of these units, 18 are immobilized due to lack of spare parts, insufficient mechanical skill to rehabilitate them, or because they are too old to make reconditioning worthwhile. The project will rehabilitate nine units which have a high pri- ority, in a program combined with mechanics' training (para. 3.22). 2.28 CPW's main workshop is at headquarters in Bissau. It is of ade- quate size (9,000 m2, of which 3,500 m2 are covered) and is, on the whole, adequately equipped with major equipment. Poor and inadequate facilities exist at other locations. The project will supplement the equipment and tools of the main workshop, and construct and equip adequate field repair workshops in Buba and Bafata (para. 3.16). J. Budgeting and Financing 2.29 Since independence, there has been no complete accounting of road expenditures. Certain materials, notably asphalt, were left by the Portuguese in large quantities, and only small additional purchases have been required. Of the total 1977 CPW expenditure of GP 68.5 million (US$2.0 million), it is estimated that about GP 27 million (US$800,000) represents maintenance expen- ditures on roads and bridges. This is just over 2% of the Government's current budgeted expenditures of GP 1.25 billion (US$36.8 million). Of the GP 27 million, an estimated GP 16.6 million (US$475,000) was spent on materials, supplies, and spare parts.  - 14 - 2.30 While the Government has financed recurrent expenditures, most purchases of new equipment and related spare parts have been financed by Swedish aid, estimated at about GP 24 million (US$0.7 million) annually in 1976 and 1977. The Ministry of Finance also regularly supplies foreign exchange for consumable spare parts (filters, etc.), amounting to about US$13,000 equivalent in 1977. 2.31 Motor fuel is imported by DICOL, a state enterprise, with 30% participation of Petrogal, a Portuguese petroleum company. In June 1978, the Government increased the pump price per litre of diesel, normal, and super gasoline to GP 6 (US$0.17), GP 12.50 (US$0.36), and GP 16 (US$0.46), respectively. Taxes are virtually remitted on diesel, which has an import price cif Bissau of GP 5.93 (US$0.17) per litre, while direct and indirect taxes on gasoline are substantial: GP 5.23 (US$0.15) and GP 5.75 (US$0.16) on each litre of regular and super, respectively. On the basis of fragmentary fuel consumption statistics, the annual theoretical yield from motor fuel taxes is approximately US$900,000. In addition, ad valorem import duties are 33% on automobiles, and 26% on trucks. The Government, foreign missions, and all donor-financed projects are exempt from import taxes, and private citizens are not allowed the foreign exchange to import cars. Since the Government operates possibly 60% of the automobiles (para. 2.07) and state enterprises, most of the trucks, the actual public revenues accruing from road users are small. Thus, given the present ownership pattern of the vehicle fleet and the objective to increase the State's control, there is little reason for or possibility of increasing road user taxes in the short term. 2.32 An IDA economic mission in early FY80 will review the country's overall public finance situation, which is now heavily in deficit. The Government accepts the principle of according priority to maintenance outlays in recurrent expenditures. At negotiations, the Government indicated its intention to finance road maintenance operations after the end of the project. During the planned discussions of Government budget and revenue, means to ensure adequate and timely funding once the project is completed will be examined (para. 3.13).  -- 15 - III. THE PROJECT A. Project Objectives and Scope 3.01 The project, IDA's first in Guinea-Bissau, is conceived as a first step in the development of the country's road sector institutions and will meet certain urgent needs. It will: (i) protect the existing paved road network from further deterioration; (ii) provide an adequate link to the southern part of the country, presently suffering from very poor communica- tions; (iii) provide basic road infrastructure to support on-going agricul- tural investment in the north; and (iv) introduce regular routine and periodic maintenance operations later to be adopted on the entire road network of the country. The project consists of a three-year road rehabilitation and main- tenance program, with technical assistance for the training of local staff. 3.02 To this end, the project will provide: (i) a rehabilitation and maintenance brigade for the existing paved roads; (ii) two road rehabilitation and maintenance brigades for gravel and earth roads in the Buba/Tombali (south) and Gabu/Bafata (north) regions, and improved trans-shipment facilities in the south at Enxude, Bedanda and Cacine; (iii) workshop, administrative and communications facilities for the brigades, by constructing and equipping of regional work- shops in Buba and Bafata, improvements to the headquarters workshops in Bissau, provision of radio communications equip- ment, and a limited program of equipment rehabilitation; (iv) a portable axle-weighing device and a light vehicle to carry it, to start a national program of axle-load control; and (v) technical assistance to CPW in execution of the project, and for training of CPW staff. B. Project Description Rehabilitation, Improvement and Maintenance 3.03 Three field brigades will be established and operated under the project for a period of approximately three years. A total of 226 km of asphalt roads will be patched and re-sealed, and 388 km of gravel roads will be improved. The brigades will also undertake routine maintenance of the rehabilitated roads until the end of the project period. The outline work programme for the brigades is given below.  - 16 - Outline Work Programme Year 1 Year 2 Year 3 Year 4- Total km km km km km Rehabilitation and Improvement (i) Asphalt roads (one brigade) 50 88 88 -- 226 (ii) Gravel roads - South 30 80 90 30 230 - North -- 68 90 -- 158 Maintenance (i) Asphalt roads -- 50 138 (ii) Gravel roads 50 160 306 3.04 The present and expected low traffic volumes call for design standards resulting in minimum cost improvements compatible with efficient maintenance. The following three road standards are proposed for roads to be improved or rehabilitated under the project: Class 1 Class 2 Class 3 Roadway width (m) 6.0 6.0 4.5 Shoulder width (m) 1.5 1.0 1.0 Surface (type) Bitumen Gravel Gravel/earth Design speed (km/h) 80 60 40 Maximum grade (%) 6 8 12 Class 1 refers to the existing bituminous paved network where the project will undertake surface repairs and, where required, rehabilitation of the base course. Class 2 contains roads with more than 25 adt and in practice refers to trunk and regional roads only. Class 3 refers to some regional and all feeder roads. Corresponding equipment and staffing requirements are listed in Annex 3. 1/ The project timing assumes that the gravel road rehabilitation in the south starts in February 1980 and achieves a 30 km output in its first season of operations. To complete the agreed 230 km program (para. 3.09), 30 km will remain to be completed in a fourth season (late 1982), although it may be possible to increase output in years 2 and 3 to complete the works by June 1982.  - 17 - Average work volumes Class 2 Class 3 Formation (m /km) 2,500 400 Surfacing km /km) 900 420 Culverts, (ave5age 60 cm diameter, m/km) 12 10 Embankments 2(m /km average) 1,300 1,000 Clearing (m /km) 6,000 4,000 Tree felling (pc/km) 35 35 Turn out drainage (km/km) 0.3 0.3 3.05 Rehabilitation and Maintenance of Asphalt Roads. Rehabilitation of the paved network requires rapid action if severe damage to the base course is to be avoided. The project will finance the purchase of equipment for one surface treatment and maintenance brigade. This brigade will apply a single- surface treatment to the more heavily trafficked sections (about 122 km), and a sand-seal where traffic is lower. The most urgent work to be done is the rehabilitation of the main trunk road Bissau-Safim-Mansoa-Mansaba-Farim (103 km) and Safim-Sao Vicente (41 km). These roads require resurfacing and, on about 25 km, removal of the surface and reconstruction of the base before resealing can be applied. 3.06 Of the roads carrying less traffic, the east-west road Binar-Bula- Canchungo-Cacheu would be adequately served by sand sealing. For the Bambadinca-Bafata-Pitche and the Mansoa-Bissora roads, which will not require resealing, routine patching should suffice. 3.07 The roads to be rehabilitated are as follows: :Length Work Types 1/ Road (km) ST SS RB Bissau Airport-Safim 5 5 -- -- Safim-Sao Vicente 41 41 -- 3 Safim-Farim 98 76 22 20 Binar-Bula 12 -- 12 -- Bula-Canchungo 38 -- 38 2 Canchungo-Cacheu 32 -- 32 -- 226 122 104 25 1/ ST: Surface Treatment SS: Sand Seal RB: Base Repairs 3.08 It is proposed to use MC 3000 cutback asphalt or its equivalent (imported in drums) for the resealing program. Bitumen emulsion will also be provided under the project so that training may be given in the use of this important wet-weather patching material. The only source of aggregate  - 18 - in the country at present is laterite nodules won by screening and washing from selected laterite borrow pits which are well distributed. It is doubtful whether this material would pass normal acceptance criteria, but a visual examination of existing roads shows that the aggregate performs adequately. As traffic weights and volumes grow, the laterite aggregate will no longer be satisfactory, and under a possible future project, the Association may con- sider the supply of quarrying equipment to exploit a basalt deposit in the east of the country. 3.09 Rehabilitation of Gravel Roads. Due to the ravages of the war, lack of maintenance, vegetation growth and tropical rainfall, much of the otherwise adequate secondary road network has deteriorated to the point that recuperation is no longer possible within a maintenance effort alone, and rehabilitation is required. The project will execute a program of rehabilita- tion, substantially on existing alignments, starting in early 1980 in the Buba/Tombali region (230 km) and in October 1980 in the Bafata/Gabu region (158 km). However, establishment of the second gravel brigade will be con- tingent upon adequate performance of the first (para. 3.30). The proposed program comprises (Map IBRD 13626R): Length (km) Class Buba/Tombali Regions (South) ('iebo-Cacine-Campeane 70 2 Tite-Fulacunda-Buba 38 2 Batambali-Catio 25 2 133 Fulacunda-Garsene 14 3 Fulacunda-Gangaura 18 3 Uama Beafada-Uama Porto 4 3 Jaba-Jabada 18 3 Nova Sintra-Sao Joao 15 3 Gantua-Balanta-Chigue 13 3 Cuileje-Rio Languere 15 3 97 Total 230 Length (km) Class Bafata/Gabu Regions (North) Comuda - Contuboel 25 2 Contuboel - Cambaju 38 2 63 Gabu - Pirada 30 3 Gabu - Sonaco 33 3 Contuboel - Sare Bacar 20 3 Sonaco - Jabicunda 12 3 95 Total 158  - 19 - 3.10 The majority of the works proposed will consist of reestablishing the formation. at a height of 0.30 m above the surrounding terrain, mainly by side-borrowing. Occasionally, visibility requirements dictate modest earth works of up to 2 m cut and sma:Ll causeways of up to 1.5 m for valley crossings. Side and turn-out drains will be reestablished. Although most cross-drainage locations already contain a culvert, they are often of in- adequate opening or broken. The project provides for the supply and placing of the equivalent of one 0.6 m diameter opening per km. The existing align- ments are mainly located on ridges or follow watersheds, but where a major waterway is crossed, the existing structures will be satisfactory. Good quality laterite is available always within a 5 km haul, usually closer, and material adequate for class 3 roads is generally available within 1 km. 3.11 Gravel Roads in the South. The main spine roads of the Buba-Tombali region are the Enxude-Tite-Buba/Batarabala-Catio road (63 km) and the Quebo- Cacine-Campeane road (70 km). Buba and Quebo are connected by an existing asphalt road which is planned to be extended to Bambadinca by a paved road to be financed by the EDF and Saudi Arabia. These roads will be rehabilitated to Class 2 standards (para. 3.04). The remainder of the roads in the program comprise the most important feeder roads in the region and will be rehabili- tated to Class 3 standards. Storage problems and the dilapidated condition of existing river piers complicate the transfer of bulk goods from boats to trucks and vice-versa. To improve the current manual loading of rice at these r- ever ports, the project will assist the Government's effort to improve storage and handling by replacing the existing dilapidated piers by more practical trans-shipment facilities at Enxude, Cacine, and Bedanda (near Catio). By adapting to the tidal variation, these new installations would lengthen loading and unloading periods, which are now interrupted at low tide. 3.12 Gravel Roads in the North. The Bafata and Gabu regions require an improved regional and feeder road network in order to: (i) ensure north-south all-weather access to the main east-west highway corridor which leads to Bissau; and (ii) provide reliable transport infrastructure in support of the various agricultural projects being planned or implemented in the regions. 1/ The Comuda-Contuboel and Sonaco-Jabicunda roads have recently been upgraded in parts to 6 m wide roadway. However, both drainage and surface material remain deficient, and sections of the roads will be difficult to pass in the rainy season. These roads provide access to the major groundnut producing areas and to successful, pilot, irrigated rice producing areas around Contuboel and Sonaco. Maintenance 3.13 Maintenance of the improved and rehabilitated roads is an integral part of the project. Normal routine maintenance will begin on each road section as soon as the capital works on it are completed. This will include spot patching of bituminous surfaces, grading of gravel surfaces, cleaning of ditches and drainage structures, cutting of grass on verges and maintenance of shoulder profiles. The project will finance hand tools and supervision for 1/ By USAID, EDF and FAC.  - 20 - these operations which will be organized by CPW and carried out by villagers (para 3.32). Periodic maintenance, such as resealing and regravelling, will not be required during the project period, but a program for subsequent routine and periodic maintenance on the project roads will be drawn up under the project. During negotiations, the principles of the program were dis- cussed and agreed with the Government and the Government indicated its inten- tion to finance adequately continued highway maintenance after the project's completion (para 2.32). Mobile Equipment and Repair Facilities 3.14 The project will finance equipment for the three project brigades - one asphalt brigade and two gravelling/earthworks brigades. The equipment to be purchased for the brigades is listed in Annex 3. The equipment to be rehabilitated includes one bull-dozer, one grader, one roller, and one fuel bowser, which will be used in the asphalt brigade; five more units will be returned to the existing field teams. 3.15 The field equipment will be supported by workshop and field servicing facilities to make the brigades self-sufficient in terms of routine equipment maintenance, transport of materials and spares, and communications. This entails the purchase, under the project, of spare parts, transport for materials, fuel and equipment, laboratory equipment and two-way radios. 3.16 Present facilities for maintaining and servicing equipment outside Bissau consist of a yard in Bafata and a small workshop in Buba. The existing Buba installation is quite insufficient, and the location of the Bafata yard close to a groundnut decortication plant makes it unsuitable for a depot due to dust problems. The CPW has acquired a site in Bafata for building a new workshop. 3.17 Under the project, new regional workshops will be constructed at Bafata (on the new CPW site) and at Buba. The workshops will be equipped to undertake routine servicing and emergency repairs. More complicated servicing and major repairs will be done in Bissau. In most cases exchange components will be used, thus minimizing equipment downtime. The workshops will contain a modest spare parts store, and an office for the brigade mechanic and foreman. 3.18 The main workshop in Bissau will serve the asphalt brigade, and function as central workshop for the other two brigades. It requires no further buildings, but some additional tools will be provided. The fixed installations for the Southern and Northern brigades and the supporting equipment for all three brigades are given in Annex 3. 3.19 The General Transport Study (para. 2.13) will review limits for vehicle dimensions and axle loads. During Credit negotiations, assurances were obtained from the Government that it would enact by January 1, 1981, adequate regulations in this respect. The project will finance the purchase of a portable weigh-bridge to assist in enforcing these regulations.  - 21 - Technical Assistance 3.20 The project will provide technical assistance at all levels in project planning and implementation. A total of 216 months of expatriate technical assistance is envisaged to cover both the preparation and implemen- tation periods, with a contingency of a further 36 man-months in 1981-82, should further technical assistance be required. The assistance would include the services of a project manager/highway engineer, an administrator, two brigade foremen and three mechanics (one, a training specialist) with other specialists for short appointments. Draft terms of reference for these ser- vices are given in Annex 2. The Government invited proposals from a short list of consultants during the appraisal mission and negotiated a contract satisfactory to IDA with consultants Louis Berger International (USA) in October 1978. Consulting services will run from November 1978 to June 1982. Independent auditors will be employed to audit the project's Revolving Fund. 3.21 The technical assistance will aid the Government in drawing up tender documents for items to be purchased, and in reorganizing the repair workshop in Bissau. After arrival of the field equipment, the technical assistance team would be responsible for the initial year of project execution in view of the scarcity of qualified and experienced personnel. CPW has already named counterparts satisfactory to IDA for each member of the tech- nical assistance team. As the counterparts gain experience, they will grad- ually assume operational responsibilities. Training 3.22 The training component will be done in two parts. On-the-job train- ing will be given to the staff of the brigades by the brigade chiefs, the mechanics, and the operator instructor. It will be built around operational requirements. The brigades will be staffed by public works employees, most of whom will have some previous experience but probably a very low level of formal education. The consultants will be required (during the first four months of the project) to draw up a realistic training program for each trade group. They should outline the operations and techniques with which each trade group should be conversant by the end of the project. The training will therefore be informal, but the terms of reference will provide for comple- mentary classroom training in such specific subjects as bituminous techniques, steel culvert assembly, and equipment servicing. 3.23 A more structured training program for mechanics will be run con- currently. It will have a tighter syllabus and a selected entry. The techni- cal assistance team member in charge of it will be substantially free of operational pressures. The appraisal mission was assured that eight suitable candidates are available within CPW for this program. There is a good chance that most of those receiving training under the project will remain with CPW  - 22 - in the short term because of the virtual lack of an alternative job market. However, this situation will not pertain for long, and it will be necessary for CPW to review salaries, incentives, and career development opportunities (para. 1.21). C. Cost Estimate 3.24 The total cost of the project, net of taxes, is estimated at US$10.1 million including physical and price contingencies. The taxes amount to US$40,000 equivalent, on fuel. The foreign exchange component is GP 304.5 million (US$9.0 million) or 89% of total project cost net of taxes, and local costs are GP 39.0 million (US$1.1 million). The table below summarizes the cost estimate which is detailed in Annex 1. Project Cost Estimate ---------US$'000---------- Foreign (net of Foreign Local Taxes Total taxes) Equipment and spare parts 3732 - - 3732 100 Workshop Equipment 103 - - 103 100 Workshops 197 69 - 266 74 Trans-shipment Facilities 300 17 317 95 Spare parts for rehabilita- tion of existing equipment 100 - - 100 100 Wages and salaries - 975 - 975 0 Fuel, Materials and Supplies 2183 22 40 2245 99 Technical Assistance /1 2385 30 - 2415 99 TOTAL 9000 1113 40 10153 89 (Rounded 9000 1110 40 10150 89 of which: Base cost (Jan. 1979) 7485 888 40 8413 89 Physical contingencies 791 87 - 878 90 Price contingencies 724 138 - 862 84 3.25 The cost of equipment and spare parts was estimated from recent quotations in West Africa for similar units. Equipment operating costs were estimated from the volume of work expected from each unit and prevailing prices for fuel, lubricants, material, spares, and salaries. 1/ Including auditing.  - 23 - 3.26 The direct cost, excluding price contingencies and overheads, of rehabilitation of asphalt roads is about US$8,100 per km. The cost of gravel road rehabilitation in the south is about US$7,800 and in the north US$8,400 per km, including depreciation over the life of the project of 50% of the equipment value. 3.27 The cost of technical assistance is estimated from unit prices for similar services in West Africa, about US$6,500 per man-month which includes salaries and the firm's overheads. Local allowances, housing, transport, and overseas travel bring the average expenditure per man-month to about US$8,400, without price contingencies. With all contingencies, the man-month cost is about US$9,600. 3.28 A physical contingency allowance of 10% has been applied to all project costs, except the technical assistance. For consulting services, a contingency of 36 man-months costing US$238,000 in 1981/82 has been allowed, should it prove necessary. Price escalation during the project period, 7.5% in 1979 and 7% p.a. thereafter, was applied to both the foreign and local cost of all project elements. D. Implementation 3.29 CPW will be responsible for the implementation of the road rehabili- tation and maintenance program. Owing to the lack of experienced Guinean staff, the technical assistance team will initially take up line functions in project execution. Guinean counterparts, satisfactory to IDA, were appointed during the appraisal mission and will work full-time on the project. As the Guinean staff gain experience, they will take over the line functions from the expatriates, so that in the final year of the project, the remaining members of the technical assistance team will act as advisors. 3.30 The rehabilitation and improvement works will be done by force account using CPW employees assigned to the project. Contract work would not permit the important training and institution building aspects of the project. Owing to the inexperience of the CPW with this type of project, the output targets have been modestly set in the implementation schedule. (See also paras 4.13-4.15). The work of the brigades will cover three working dry seasons from late-1979 to late-1982. Patching on the paved roads will begin in October 1979, and work on the laterite roads in the south in early 1980. The brigade in the north will start in October 1980, one working season later than the first two. This will avoid overtaxing CPW's technical and administrative capacity and allow CPW technicians to acquire basic technical skills. A condition for placing the order for equipment for this third brigade will be that the first two shall have operated satisfactorily for a period of four months and have reached output targets to be agreed upon during implementation. Bidding documents for purchase of equipment, spares and materials will be prepared by early 1979 and will incorporate a delayed delivery for the equipment for the third brigade. Equipment delivery should begin in mid-1979. After being des:igned by CPW's consultants, the trans- shipment facilities will be constructed and installed by the supplier. The chart on page 24 shows the execution schedule.  GUINEA-BISSAU PROPOSED FIRST ROADS PROJECT Project Implementation Schedule 1978 1979 1980 1981 1982 ITEM ACTIVITY ACTION BY 3rd 4th 1st 2nd 3rd 4th lst!2nd!3rd'4th lst'2nd:3rd)4th .lst'2nd'3rd'4th Board Presentation CREDIT Signing E Effectiveness Govt/IDA v y , __,___ . Technical Assistance Negotiations Government i Award of Contract Government Consultants Services Consultant i Inception Report , Draft Final Report Final Report Purchase of Preparation of Bids Consultant Equipment, Spare Analysis of Bids Cons/Govt - Parts and Materials Award of Contracts Government . Delivery Suppliers Road Rehabilitation Asphalt Brigade Govt/Cons Southern Brigade Govt/Cons Northern Brigade Govt/Cons Workshops/Buildings -  - 25 - 3.31 The technical assistance to CPW would commence prior to field works to permit preparation of bidding documents and an early start on rehabilita- tion of equipment. This will require the services of some 10 man-months of mechanical and highway engineering assistance during late 1978 and the first quarter of 1979, for which the Government received from IDA an advance of up to US$300,000 under the Project Preparation Facility. 3.32 Although the legislated market rate payable by CPW for rural un- skilled casual labor is only US$1.20 per day, the low population density, intense competition from agriculture during the maintenance season, the lack of gang chiefs, and the history of forced labor during the colonial period make the widespread use of labor-intensive methods impractical. CPW will experiment with paid communal labor for brush-cutting and ditch clearing under the project. This would be organized at the village level, the basic social and political unit in Guinea-Bissau. 3.33 The project is scheduled to be completed by the end of 1982, but work on the agreed program may continue into early 1983 if there are delays in the ordering and delivery of equipment or execution of the works. Accord- ingly, the cost estimate includes a price contingency of US$41,000 for this possibility. E. Financing and Disbursements 3.34 The proposed IDA Credit would cover the entire foreign exchange cost of the project, US$9.0 million. The Government will finance all local costs, mainly wages, totalling GP 39.0 million (US$1.1 million), and GP 1.4 million (US$40,000) in taxes. To ensure timely availability of funds, a project Revolving Fund will be established in the Central Bank. The Government's setting up of this fund would be a condition of effectiveness. IDA would deposit in the fund the equivalent of US$150,000 representing the estimated cost, over a quarter, of locally-purchased imported goods (mainly fuel and cement) and directly imported spare parts necessary for the project. The account would be replenished upon the receipt by IDA of invoices and supporting documentation. At negotiations, the operational details of the Fund were discussed and agreed. 3.35 The IDA Credit will be disbursed as follows: (a) for highway equipment and spare parts, the trans-shipment facilities, radios and tlhe weighbridge, 100% of foreign expenditures (cif Bissau); (b) for spare parts for the repair of existing CPW equipment, 100% of foreign expenditure or 50% of local expenditures; (c) for fuel, materials and supplies, 100% of foreign expenditures or 94% of local expenditures; (d) for consulting services, 100% of foreign expenditures; and (e) for civil works for workshop construction and for the trans-shipment facilities, 74% of total expenditures.  - 26 - A sum of US$1,000,000 will remain unallocated. The disbursement percentages have been calculated on the basis of the Government's exemption of all donor- financed direct imports from all customs and duties, and on the basis of the dealer markups, duties and taxes prevailing at appraisal on all locally- procured goods (fuel, cement and some spare parts). IDA's disbursement schedule is shown below: Estimated Schedule of Credit Disbursements (US$'000) IDA Fiscal Year Cumulative Disbursements and Quarter Ending at End of Quarter 1979 March 1979 300 June 1979 1000 1980 September 1979 4000 December 1979 4900 March 1980 5400 June 1980 5640 1981 September 1980 6310 December 1980 6530 March 1981 6850 June 1981 7180 1982 September 1981 8020 December 1982 8320 March 1982 8520 June 1982 8720 1983 September 1982 8850 December 1982 8950 March 1983 9000 Requests for disbursements will be fully documented, and detailed supporting material will be retained by CPW and available for inspection by IDA. The project accounts and the Revolving Fund will be audited annually by indepen- dent auditors satisfactory to IDA. F. Procurement 3.36 Bitumen, steel culverts, some building materials, equipment for the field brigades, the trans-shipment facilities and major workshop equipment (approximate value US$3.6 million) will be procured through international  - 27 - competitive bidding in accordance with Bank Group guidelines. In evaluating the bids for equipment, consideration will be given to the availability of after-sales service and spare parts. Minor workshop equipment, survey and laboratory equipment and radios wou:Ld be procured following quotations from suppliers or bought off the shelf, provided the aggregate of such purchases does not exceed US$200,000 equivalent. Spare parts for the rehabilitation of existing equipment would be bought from the original suppliers (US$100,000). Fuel would be supplied by DICOL, the local distributor of petroleum products, and cement, through the Commissariat of Commerce, whose procurement procedures, based on international tendering are satisfactory (approximate value US$1.0 million). 3.37 Technical assistance to CPW for project execution has been obtained from a consulting firm satisfactory to IDA. G. Project Monitoring 3.38 The Government agreed at negotiations that it will submit to IDA quarterly progress reports of its consultants, with its comments. At negotiations, the Government also agreed that it will furnish to IDA promptly at the end of the project the Consultants' final report, together with its comments, which will together constitute a report on the execution of the project. IV. ECONOMIC APPRAISAL A. General 4.01 Both the condition of the road network and the lack of funds and skilled manpower are serious constraints to Guinea-Bissau's rural development strategy. A prime impact of the project will be the creation in the Commis- sariat of Public Works of the capacity to rehabilitate and maintain Guinea- Bissau's road network. But the project's three main physical components will serve three more focussed goals: (a) to preserve the extensive investment in paved roads north of Bissau, postponing highway reconstruction, a poten- tially heavy drain on the development budget, and maintaining Bissau's communication with its hinterland and with Senegal (paras. 4.05-4.06).; (b) to provide a basic land transport infrastructure in the southern Buba and Tombali regions, now served only by tracks in extremely poor condition, facilitating communi- cation in the region and wi.th Bissau and agricultural extension, and reducing vehicle operating costs for exist- ing traffic (paras. 4.07-4.09);  - 28 - (c) to provide a basic land transport infrastructure to support on-going, externally-financed agricultural development in Gabu and Bafata, important producing regions for foreign- exchange-earning groundnuts and locally-consumed grain crops (paras. 4.10-4.11). 4.03 Vehicle operating costs are presented below: Vehicle Operating Costs (G.P. per vehicle-km, net of taxes) Road Surface Condition Paved Laterite Car Van 5t Truck 10t Truck Car Van 5t Truck 10t Truck Excellent 9.6 10.4 19.9 35.6 n.a. Good 10.9 17.4 21.9 39.3 12.6 18.0 23.6 56.3 Fair 11.3 19.4 23.7 45.3 16.0 22.9 30.2 73.2 Poor 11.9 21.3 28.8 46.0 20.0 29.2 38.2 89.9 Very Poor n.a. 24.4 34.9 45.8 102.9 Source: Mission estimates. 4.04 The overall economic rate of return (ERR) for the project is 33% taking into account the benefits described below in paragraphs 4.05 to 4.11, all project costs including the cost of the technical assistance (the full benefits of which cannot be quantified) and the costs of investments, com- plementary to the feeder roads, shown in the table on page 29 and discussed in paragraphs 4.08 to 4.10. With a 15% cost overrun on all project equipment and operating costs, the ERR remains an acceptable 31%. Shadow wage rates and a standard conversion factor were calculated, but owing to the high proportion of foreign costs, they do not affect the ERR. B. Rehabilitation and Maintenance of Paved Roads 4.05 The rehabilitation (patching and single-surface treatment) on 226 km of paved roads will prevent an increase in voc as the roadway deter- iorated, and postpone massive costs of reconstruction, which is likely to be needed if these urgent repairs are not undertaken. Without the project, the appraisal mission estimates that about 140 km of the existing paved roads (built around 1970-72) would need full reconstruction in three to five years, at a cost of about US$125,000 per km (net of taxes, and shadow-pricing local costs). 4.06 The ERR for the paved road operations is 146%, assuming that they postpone the need for reconstruction of 140 km from 1982 to 1990. Discounted at 12% the benefit-cost ratio is 4.6:1, and the net present value is US$5.57 million. If the eventual reconstruction date is advanced, the ERR falls, but even if the project extends the life of the roads only from 1982  CUIii A- S SSAIU PROPOSED FIRST ROADS PROJECT 1. Paved Read Rehabilitation II. Regional Roads-So-th III. Feeder Roads-Sooth / IV. Feeder Roads-Nort). Techoical Capittl Cost Recurrent Cost V0C Savings 2/ Capital C'st Recurrent Cost VOC S.eings 2/ ComplementarY Feeder toads Produ.er Compl 5emntarg Rovads /Produc r Aseistance Rehabilitation, Maintenance Reconstruction Rehabilitation M Maintenance InveatMent 4 Surplus Inveetnent 5! Surchi mlkR Vikbet 5 gth i _ i itsibot With Withtos io79/80 1250 308 11 189 560 2000 1090/81 740 542 44 504 58 1755 3000 496 990 i'fl/S2 520 542 89 50 213 * 1355 567 700 3000 657 2100 191F!83 109 119 5000 50 223 855 189 1400 65 3100 9993,'84 109 125 40 6250 50 235 1855 52 2150 65 3160 4t9t.185 109 131 80 6250 50 246 355 52 2300 65 3200 (-cS/85 109 109 137 137 50 260 355 52 2600 65 3300 i 96, 81 109 109 144 7 44 50 272 355 52 2600 65 3300 i?o7!88 109 109 151 151 ! 953 9 /8" 11 109 109 159 159 1'1:9/90 109 109 166 166 lt 0/91 109 175 175 5000 *0! e2 109 120 184 6250 19.7193 109 6S 193 6250 1. 1. ERR. 1467 II. 1. ERR_ 177 III. 1. ERR= 16. IV. 1. ERR. 2 . 2. With 157. Increase in capital costs: 134% 2. With 157. incre.se in capital 2. With 15% increase in 2. With 15% increase 3. 8CR at 12%: 4.6:1 costs: 12% road costs : 157. in road costs: 261 4. With 4 year slippage in 5without project" 3. Without 5-. p.s. traffic growth: 137. 3. % drop in benefits to 3. 7. drop in benefits reconstruction: 41% 4. 1 drop in be.efits to yield 12% ERR x 97. to yield 127. ERR: 33 yield 127. ERR: 23% 7. of total . of total project 7. of total project C-nponent project financial costs economic cost (NPV at 127) economic benefits (NPV at 127) ERR (7.) Paved road rehabilitation 24 22 27 146 ReRional Roada:South 12 11 3 17 Feeder Roeds:South 16 10 25 16 Feeder Roads:North 19 17 45 27 Technical Assistance and Shar.d equipment 8/ 32 40 NOT QUANTIFIABLE NOT QUANTIFIABLE ERR of project: 337. With 157. cost increase, 317. A'A cc-t5 and t'e f'- - -r-ssed in lonoary 1979 prices. Costs include physical contingencies vhrre applicable. Ali taxes excluded, and local resources shadow-costed per par.. 4.04 of main text. Pr- "cct -'o-io .Li! refers t. -sefuL life of equlp-ent for II, III, IV, life of pa-ment rehabilitation for I. 2i 5. yoa trlf fc cr00 tot. . I ho t --,teco,noro co-t of LS563(0 per ho. uj I,crcthe tra--sldweot f-cilities to he fino...od -ider the -nrject, -ilge'ter 8,,PPles, salt water intr.sion harriers, health centers, eeed .ultipllcstion centre and training of extension workers. tco-Xolr.cple-elary (US$2.8 million)), -ppl-ntnd by an asud 1S65 million roral development project. Renefits for thls regional development Package are: Ci) Increase roc ddc rr0d-ti-so 1 pro-cax le-e by 1993 (17,600 t increme-tal coronrcialized Iuii) olo.ed b (i further 3,,.00 t increas.e by 1986. (par-. 4.08-4.09). '1 Icd-;FED -nd FAC on-g.ing rice, groo.nd,ot, grain and cotton projec ts in zone of Influenfce of th4eLroads. l ,d - at econo,ic cost of US17300 per km, and subsequent maintenance. 7/ Prod-cer surplus ostioated at 451 of market value of production (para 4.10-4.11). 8i Inclede, cost of consult-nts plus radios, veighbhidge, and workshops, shared aeong brigades. '0 I  - 30 - to 1986 (assumed to correspond to the life of the equipment), the ERR is still 41%, and the net present value remains above US$5.5 million. The ERR is also not sensitive to possible cost increases: even with a 15% increase the ERR remains above 100%. C. Gravel Roads - South 4.07 The rehabilitation of 133 km of gravel regional roads (Quebo-Cacine, Tite-Buba, Batambali-Catio), at an estimated economic cost of US$6590/km, is justified by vehicle operating cost savings. With existing traffic of about 25 adt, with a 5% annual traffic growth and a seven year life for the reha- bilitation, the ERR of these works is 17%. With a 15% cost increase, the ERR remains satisfactory at 12%. Should traffic not increase, the ERR is 13%. 4.08 Traffic on the 97 km of tracks to be upgraded to 4.5 mi-wide feeder roads is low, generally less than 5 adt. These roads and the trans-shipment facilities are important features in the Government's plans to revitalize agricultural production in the Buba and Tombali regions. With the help of external assistance from UNICEF, the Netherlands, EDF, the Federal Republic of Germany, and the World Council of Churches, the Government has already begun to develop village water supplies, to establish health centers, to reconstruct barriers against salt intrusion (destroyed in the war) and has established a center for seed multiplication and training of extension workers. An inte- grated rural development project including distribution of seeds, fertilizers and pesticides, creation of an extension network, and rebuilding dykes, is now under discussion with several donors. Such a project, about US$5.0 million, would allow by 1986 a doubling of total paddy output from the 1976 production of 34,000 t. As this is already a rice surplus area (7,700 t commercialized paddy in 1976), all incremental output would be available for sale. Essential aspects of this strategy, extension services and distribution of farm inputs, depend on road access to the villages, as does transport to main collection and storage centers at Bedanda, Enxude, Cacine, Catio, and Buba for water transport to Bissau. 4.09 With an economic cost of US$615,000 (US$6340/km), the feeder roads in the proposed project are a small element (about 18%) of the committed investment in the Buba and Tombali regions, which totals about US$2.8 million. By increasing cultivable surface, and by production assistance (mainly exten- sion and inputs), the 21,200 t incremental annual paddy production expected by 1985/6 from the areas adjacent to project roads 1/ has a value of about US$2.6 million, net of direct production costs and transport to Bissau, the main market. The regional investment package, including a US$5 million rural development project, has an ERR of about 16%. Other investments in the south, to diversify crops and increase production to even higher levels, are possible: the feeder roads would support these efforts. 1/ About 60% of total incremental output of 34,000 t in the two regions.  - 31 - D. Gravel Roads - North 4.10 The rehabilitation of 75 km of existing roads to 6 m-wide modern gravel standard, and of 93 km of existing tracks to 4.5 m wide feeder roads, supports on-going integrated rural development projects financed by the European Development Fund (EDF) and the French Fonds d'Aide et de Cooperation (FAC). The EDF project, to be completed in 1980, has a total cost of US$7.2 million. Its objectives are the intensification of food crop, cotton and groundnut cultivation on 27,000 ha, benefitting over 6,000 families. The 4500 ha FAC project, which concentrates on groundnuts, has similar objectives. Annual payments to producers for the increased output would be US$5.2 million per year at full production in 1983, of which producer surplus is estimated at US$3.3 million. 4.11 The total economic cost of US$1.16 million of the roads in the proposed project is small relative to the US$8.0 million of investment by EDF and FAC. The roads, however, are essential to the full success of these rural development projects, permitting cheaper and reliable access between nearly 65% of the area to be cultivated (about 20,000 ha, accounting for 75% of total incremental output) and regional markets. The ERR for the package of agricultural, social, and road investments is about 27%, taking the value of net incremental production (producer surplus) as the project benefit. A 15% increase in road costs reduces the ERR of the package only slightly to 26%. F. Project Beneficiaries 4.12 The Government is the principal direct beneficiary of the project. The rehabilitation of paved roads will postpone expensive reconstruction, a potentially serious drain on the development budget. Vehicle operating savings on paved and gravel roads wi:Ll accrue to operators: mainly the Government administration and the two state trading companies, Armazens do Povo and Socomi. These firms, which are responsible for the purchase and transport of all agricultural products, and the distribution and sale of all consumer goods, should be able to reduce their trucking costs and thus, retail prices, and, in the case of the south, improve the quantity and range of goods available to farmers at their rural outlets. Better roads in the soutih will improve access to markets and to social infrastructure, The development impact of the roads in the Bafata and Gabu regions, where agri- culttural projects are underway, is shared by the rural beneficiaries (8,000- 10,000 families -- about one third of the population in these areas), who will enjoy increased cash incomes, and by the economy as a whole, by increased foreign exchange earnings (from groundnuts and cotton) and savings (on imports of lice, maize, and sorghum). The project also will have a substantial in- stittLtional impact on the Commissariat of Public Works by creating the basic management and technical skills necessary for the functioning of the road sector, and by increasing the skills and productivity of about 180 CPW staff.  - 32 - F. Project Risks 4.13 Although this is only the first IDA project in the country, Govern- ment officials have worked closely in its preparation. There is, at all levels, understanding of and commitment to the project's general objectives and to the spc--ific agreed physical targets. Key project staff have been appointed, and the informal action-oriented style of civil service should be able to cope with any unforeseen problems. Close supervision is planned, both to help smooth project execution and to acquaint the Government with IDA's methods and procedures. 4.14 The country's inexperience and limited absorptive capacity pose major risks to the project. The project has been designed and phased to attempt to take this into account. To minimize the risk of a delay in project start up caused by slow ordering and delivery of equipment, Project Preparation Facility is being used to prepare bidding documents, set up the project's administrative structure and begin training. The execution sche- dule incorporates a delay in the start of the southern laterite rehabilita- tion brigade from November 1979 to February 1980 to allow ample time for deliveries, setting up workshops, moving equipment to the sites, and train- ing operators. Although with a daily production rate of 570 meters per day, the brigade might easily achieve 60 km in a 5 month working season, the first year's output of this brigade has been conservatively estimated at 30 km. On this basis a spillover into the 1982/83 dry season would be necessary to complete the feeder roads in the south. The modest additional cost to the project would be US$41,000, which has been included in the cost estimate. The overall ERR of the project and of the southern brigades has been calculated on the basis of this timing, and the effect of this delay on the ERR is minimal. 4.15 A delay in equipment delivery would not affect the paved road re- habilitation since the necessary preparation and patching prior to resurfac- ing could begin in October 1979 as scheduled, as the equipment typically has a short delivery time even if orders are not placed until July 1979, some three months later than the target date. The delayed start of the third brigade to 1980/81, which is conditional on the satisfactory operation of the first two (para 3.30), reduces its total output, but avoids undue strain on the adminis- trative capacity of the CPW, and permits greater attention to training and technical quality from the start, during the 1979/80 operations season. IDA's financing of fuel and materials ensures their timely availability, a key factor for best use of the equipment. The Revolving Fund will expedite ordering of and payment for spare parts and supplies from overseas suppliers, and simplify accounting and disbursement procedures for CPW and IDA.  -- 33 - V. RECOMMENDATIONS 5.01 Prior to Credit negotiations, the Government negotiated a contract with consultants, acceptable to IDA, to assist in the execution of the project. It contains satisfactory assurances about housing for the technical assistance team (para. 3.20). 5.02 During negotiations for the proposed Credit, the following prin- cipal issues were discussed and agreements reached with the Government and specified as conditions in the Credit Agreement: Condition of Effectiveness for the Proposed Credit (i) establishing the Revolving Fund (para. 3.34); Other Conditions (ii) agreement on a project implementation schedule including the confirmation of the order of equipment for the third brigade only after the first two brigades have been operating satisfactorily for a period of four months, or such other period as the Government and IDA may agree, and have reached output targets to be agreed upon during imple- mentation (para. 3.30); (iii) agreement on preparation of a completion report (para. 3.38). 5.03 Furthermore, assurances were obtained from the Government during negotiations that: (i) it will enact by January 1, 1981, and begin enforcement of axle-load regulations appropriate to the geometric and technical characteristics of the highway network (paras. 2.08, 3.19); and (ii) it will finance the continued maintenance and rehabilitation operations by the brigades after completion of the project (paras. 2.32 and 3.13). 5.04 The proposed project is su-itable for a Credit of US$9.0 million to the Government of Guinea-Bissau on standard IDA terms.  - 34 - ANNEX 1 GUINEA-BISSAU PROPOSED FIRST ROADS PROJECT Project Cost Estimate Z Foreign -----------------GPOOO -- --- -- ----------------US$' 000--------------- Cost (net Foreign Local Taxes Total Forei ' Local Taxes Total of taxes) 1. Basic Cost 261,975 31,080 1,400 294,455 7,485 888 40 8,413 89 1. Highway equiprent and spare parts 114,450 - - 114,450 3,270 - - 3,270 100 2. Workshop equipment 3,150 - - 3,150 90 - - 90 100 3. Workshops and buildings 5,705 1,995 - 7,700 163 57 - 220 74 4. Spare parts for rehabilitation of * existing equipment 3,500 - - 3,500 100 - - 100 100 5. Wages and Salaries - 26,950 - 26,950 - 770 - 770 0 6. Fuel. materials and supplies 62,020 630 1,400 64,050 1,772 18 40 1,830 99 7. Technical assistance 64,750 1,050 - 65,80 1,850 30 - 1,880 99 8. Trans-shipment facilities 8,400 455 - 8,855 240 13 - 253 95 II.Physical Contingencies 27,685 3,021 - 30,706 791 86 877 on Items 1.1 - 11,445 - - 11,445 327 - - 327 I.2 315 - - 315 9 - - 9 1.3 560 210 - 770 16 6 - 22 I.4 - - - 0 - - - 0 I.5 - 2,695 - 2,695 - 77 - 77 1.6 6,195' 70 - 6,265 17i 2 - 179 I.7 8,330 - 8,330 238 - - 238 I,8 840 46 - 886 24 1 - 25 IIi. Price ContinGencies 25,340 4,830 - 30,170 724 138 - 862 on Items I.1 4,725 - - 4,725 135 - - 135 1.2 140 - - 140 4 - - 4 I.3 630 2'10 - 840 18 6 - 24 I.4 - - - 0 - - - 0 I.5 - 4,480 - 4,480 - 128 - 128 I.6 8,190 70 - 8,260 234 2 - 236 I.7 10,395 - - 10,395 297 - - 297 1.8 1,260 70 - 1,330 36 2 _ 38 I II II 315,000 38,931 1,4G0 355,341 9,00 1.112 40 10,152 (89Z) (Rounded) 315,000 38,950 1,400 355,350 9,000 1,l10 40 10,150  - 35 - ANNEX 2 Page 1 GUINEA-BISSAU PROPOSED FIRST ROADS PROJECT Outline Terms of Reference for Consulting Services I. INTRODUCTION 1. The Government of Guinea-Bissau has requested the assistance of the International Development Association (IDA) to undertake a road maintenance and rehabilitation program. The project is conceived to (i) rehabilitate key elements of the country's road network and (ii) strengthen the managerial and operational capacity of the Government's road maintenance service. The consulting services are required to assist the Government in carrying out the program outlined below. II. OBJECTIVES 2. The purpose of the Services is to assist the Commissariat for Public Works, Construction and Urban Affairs (CPW) to implement a road re- habilitation and maintenance program, specifically the equipping, establish- ing, and operating of three road brigades, and their supporting administrative and technical services. 3. The objectives of this program are to: (a) develop the capability of CPW to plan and execute highway rehabilitation and maintenance works according to sound engineering, economic and management practices; (b) carry out needed rehabilitation on a network of bituminous, gravel and feeder roads and initiate proper maintenance operations on these roads. 4. The project will include inter alia: (a) the purchase of (1) highway equipment and spare parts, (2) workshop tools and equipment, (3) spare parts for the repair of some existing items of highway maintenance equipment, (4) construction materials, (5) radio communication equip- ment, and (6) teaching aids and materials; (b) rehabilitation and maintenance of priority sections of the road network; (c) on-the-job training for highway and workshop personnel with complementary classroom teaching; and  - 36 - ANNEX 2 Page 2 (d) rehabilitation for some items of unserviceable road main- tenance equipment. As presently conceived the project will consist of three operating brigades, one for bituminous roads, one for laterite roads in the Buba-Tombali region, and one for feeder roads in the Bafata-Gabu region, together with supporting administrative and workshop services. III. SCOPE OF CONSULTING SERVICES A. General 5. Under the overall control of the Commissar for Public Works, the consultants' team, with the assistance of Guinean counterparts and a team of employees drawn from the existing CPW staff, shall manage all the administra- tive, procurement, financial, technical and operational aspects of the project, as required, to achieve the objectives set out in Section II above. However, it shall be the aim of the consultants progressively to pass day-to-day manage- ient responsibility to their counterparts, and to assume an advisory role in the final year of the project. The Government, for their part, shall provide or cause to be provided the personnel, facilities, etc., outlined in Section VII below. However, the consultants shall be solely responsible for the analysis and interpretation of all information they receive and for the con- clusions and recommendations presented in their reports. B. Operations 6. The attached map indicates the priority roads to be re-sealed or regravelled under the program. The consultants shall be responsible for setting up the brigades described in 2 (i) and 2 (ii) and organizing equip- ment, manpower, and materials into operational units and carrying out the physical works on the roads indicated. The standards to be used on the various roads shall be defined by the consultants in agreement with CPW during the first three months of the project. A detailed work program with an indication of fuel and materials requirements shall be given in the Inception Report following this period. C. Training 7. The training element of this project is important for the function- ing of the brigades and for their future viability. The consultants shall prepare a program of training for all the trade groups required for successful operation of the brigades and their supporting administrative and workshop personnel, based on numbers agreed with CPW. This program must be carried out within the framework of the brigade operations and the equipment rehabilita- tion but will also include complementary classroom instruction.  - 37 - ANNEX 2 Page 3 D. Equipment Rehabilitation 8. In consultation with CPW, the consultants shall prepare proposals for a limited program of rehabilitation of existing heavy equipment and vehicles at present out of service, which in their view, within the constraints of manpower and technical services available and useful for training, should be rehabilitated and, after approval, carry out the program. E. Supporting Administrative Services 9. The consultant shall examine the administration and physical ser- vices for the procurement, warehousing, issuing and delivering of material and supplies required for the operation of the project's field brigades, for the payroll of project personnel and for the operation of the project's Revolving Funds. They shall recommend such improvements as are compatible with the Government's overall administrative regulations and, in agreement with the CPW, assist in their introduction into the administration of the project. F. Technical Services 10. To ensure the timely maintenance and repair of the brigades' equip- ment, the consultant shall (a) take over and equip a suitable area of existing workshop office and warehouse accommodation at CPW headquarters, and there establish and operate a servicing and repairing facility and accommodate within the operation the training requirements for workshop personnel; (b) establish and run a small sub-depot at Buba and eventually at Bafata also for servicing of and minor repairs to the laterite road brigades' equipment. G. Procurement 11. These services shall include: (i) the preparation of bidding documents suitable for inter- national competitive bidding for the supply of heavy equipment and vehicles, spare parts and consumables, workshop tools and equipment, housing and other materials required for the execution of the project; (ii) administration of the procurement procedure, evaluation of the bids, and the subsequent setting up of inventory, issue and control procedures for the goods so procured. IV. TIME SCHEDULE 12. The Consultants shall commence field work on this program within thirty calendar days of the effective date of the Contract. The program shall be carried out in two stages:  - 38 - ANNEX 2 Page 4 STAGE I - During this preparatory stage of 4 months, a General Plan of Action shall be developed concerning all aspects of the rehabilitation, maintenance and training programs, and contracts for the purchase of equipment and materials shall be awarded. STAGE II - During this stage, i.e., during the remainder of the consultants' contract period, the consultants shall assist CPW in the implementation of the agreed Plan of Action, and in preparing a program, as appropriate, for continuing the activities begun under this project. V. STAFFING 13. The following qualifications are considered as minimum require- ments for the staff: General: All team members shall have a good working knowledge of spoken Portuguese; the project manager and the administrator shall be fluent in written and spoken Portuguese, and in either English or French. All team members should have had experience of public works operations in a developing country, preferably in Africa. (a) Project Manager - should be a qualified highway engineer and have at least 7 years' experience in the construction and main- tenance of bitumen and gravel roads and shall have served at least one term in a position of responsibility in a similar project. (b) Administrator (responsible for accounting and management) - should have at least five years' general experience in procure- ment, accounting, inventory and control of spare parts and materials, and in the general administration of an operational works unit, and shall have held at least one position as the leader of an administrative unit. (c) Two Highway Technicians or Highway Engineers (Brigade Chiefs) - For a highway technician 10 years', and for an engineer, a university degree and 5 years' experience in highway works, at least two years of which must have been in a supervisory capacity in a road maintenance organization. Previous expe- rience in the savannah region of a developing country is essential and some teaching experience would be an advantage. One man must offer specific experience of sprayed bituminous surfacing. (d) Three Mechanical Technicians - should have an approved trade school diploma and a wide experience of the servicing and repairing of both heavy plant equipment and trucks and vehicles.  - 39 - ANNEX 2 Page 5 At least three years' experience in a workshop management position is required for one post. Previous experience as a mechanic instructor is desirable for two posts and required for the third. (e) Mechanical Engineer (Required for four months only) - should have at least five years' experience in the field of highway and workshop equipment, with a thorough knowledge of specifi- cation writing and general procurement pjrocedure. (f) Operator Instructor - should be experienced in the operation and daily servicing of several types of heavy equipment (graders, dozers, etc.) and vehicles and should be capable in a four-month period of teaching CPW employees on the job. VI. REPORTING 14. The consultants shall prepare and submit the following reports within the periods indicated: (i) An Inception Report within four months of-the starting date. This Report should contain the general plan of action for executing the road works, the training program, the training programme, the equipment rehabilitation programme, and draft contract documents for the purchase of the equipment (other than the major items) tools, fuels, and materials required for the execution of the project (10 copies in Portuguese to the Government, 5 copies in Portuguese and 5 in English to the Association). (ii) Progress Reports, at three months' intervals after submission of the Inception Report, giving a statement of all work per- formed during the reporting period, a summary of interim findings, and an outline of the work program for the next two reporting periods (10 copies in Portuguese to the Government, 5 copies in Portuguese and 5 in English to the Association). (iii) Draft Final Report, within 39 months of the Starting Date, summarizing (a) all works performed, (b) major findings and conclusions, and (c) recommendations for a continued program of road maintenance and rehabilitation (10 copies in Portuguese to the Government, 5 copies in Portuguese and 5 copies in English to the Association). (iv) Final Report, within 43 months of the Starting Date, incor- porating (a) all revisions deemed appropriate by the consul- tants after receipt of coimments on the Draft Final Report from the Government and t'he Association; and (b) an annex listing all comments which have not resulted in revisions of the report (number of copies to be determined by the Government and the Association).  - 40 - ANNEX 2 Page 6 The reports mentioned in (i) to (iv) above shall contain a concise first chapter summarizing all important results, findings, problems, and rec- ommendations of the Consultants. The Draft Final Report shall be edited and completed so that the production of the Final Report can proceed without delay. VII. PERSONNEL, FACILITIES AND DATA TO BE PROVIDED BY CPW A. Personnel 15. The Government shall make available for full time employment within the project the following personnel: (a) suitably qualified persons to act as full-time counterparts to each member of the consultants' team. It is intended that these counterparts will assume the full responsibilities of the consultants before the end of the project; (b) approximately 190 persons who will form the staff on the three brigades, broadly capable of filling the following categories: Heavy Equipment Operators Truck and Vehicle Drivers Trainees - Laborers - Mechanics and Workshop personnel Office staff B. Technical and Economic Data 16. The Government shall provide the consultants with all necessary data including: (i) maps; (ii) inventory of existing equipment both operational and not; (iii) details of the personnel to be assigned to the project, including, where available, education, past experience and present responsibilities; (iv) any relevant information on the current administrative and accounting procedures of the CPW. C. Facilities and Supporting Staff for the Consultants 17. The Government shall make available for the exclusive use of the project the following workshop and office space at its Bissau headquarters:  - 41 - ANNEX 2 Page 7 (a) at least six bays of an existing workshop building with suitable yard and parking space adjacent; (b) space in an adjacent bui:Lding either existing as, or suitable for conversion to, offices warehouse, and classroom, com- prising a minimum of 400 m in area; (c) a site suitable for use as a residential compound by four members of the consultants' team and their families accommodated in mobile homes or pre-fabricated buildings. An electric generator installation will be supplied as part of the project equipment. A water pumping distribution and treatment installation can be supplied, but the site must have a suitable source of water; (d) sites for establishing project workshops at Buba and Bafata. 18. The Government shall take all necessary steps to permit the movement of the con6ultants' staff safely and without hindrance both into, out of, and internally within the country, as required for the performance of their services. 19. In connection with work by the Consultants that requires the cooperation of local authorities or other Government agencies, CPW is to provide liaison and to ensure that Consultants have access to all information required for the performance of their services.  - 42 - ANTFNX ITT Page 1 of 2 GUINFA-BISSAU FIRST ROtDS PROJECT Equipm,ent for Brigades Asphalt |Laterite Brigades Total Brigade Cost Item HQ. Buba Bafata USS '000 Dozer 200 HP 1 - 140 Dozer 150 HP - - 1 97 Track loaders 1 1 1 219 Wheel loaders 1 1 1 162 Graders - 2 2 315 DuDp trucks 3 7 5 420 Rollers 3 2 1 125 Wlater ta2kers - 1 1 70 Bitumen sprayer 1 _ - 36 Chipping distributor 1 6 Agricultural tractors 1 1 1 30 Liaison vehicles 2 2 2 42 4-wheel drive vehicles 1 1 1 36 Field service trucks - 1 1 80 Bitumen relay tanker I - - 50 Screening plant 1 - - 65 Decanting unit 1 - - 18 Rotary broom 1 - - 4 Emulsion sprayers 2 - _ 2 Fuel tanker 1 - - 48 Low bed trailer 1 - - 40 Road tractor 1 _ 65 Flat bed truck 1 - - 15 Fl.at bed trailer - 1 1 6 Concrete n:ixers - 1 1 10 Radio sets 2 3 3 8 isece]laneou.3 130 2g239  - 43 - ANNFX III Page 2 of 2 GUINEA-BISSAU FIRST ROADS PROJECT Local Staffing Requirements Headquarters arnd Asphalt Buba Bafata Brigade Brigade Brigade .Counterparts to Consultants'team 5 2 2 Foremen 2 2 2 Drivers and Operators 11 20 19 Tradesmen 10 6 Labourers 25 30 ,25 Admanistrative 8 2 2 Mechanics 10 4 4 -61 70 60 Total 191 1ixed Installations at Buba and Bafa.ta For each location Cost US$ OOO's Workshop and Stores Building 180 m2 30 Workshop' Equipment 20 Office building 50m2 11 Fuel storage tanks 30 Electrical generator 50 Lighting water supply sewerage and fencing 13 154  - 44 - GUINEA-BISSAU PROPOSED FIRST ROADS PROJECT Related Documents and Data Available in the Project File A. 1. "Etude Generale du Reseau Routier," Macchi-Valle Associates, Rome, 1977. 2. "The Maritime Scene in Guinea-Bissau," George A. Veres (Consultant), Washington, D.C., 1978. 3. "L'Economie de Transports des Marchandises en Guinee-Bissau," Peter B. Warren, UNCTAD, September 1977. B. 1. "Cereal Marketing in Guinea-Bissau," March 1977. C. 1. Highway Map of Guinea-Bissau. 2. Topographic Sheets of Project Road areas (South and North). 3. 1977 Budget of Commissariat of Public Works.  '0I6!30 SIrJo rI!5oi !00 --_. ,20 100' AIBRD 13626R S E E E G A L (, To 900cr On Dck, To OSroor F-~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~~~~~~~~h -wb6~ ~~~~~ A TI A NTI C V - gundima XCembOlU ;;;buco; Plro'do - -* = > ^ e.S~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C ;-'-'adia-d-c d-djLiA '3?~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- 1, , d4s_' 0 CEAN I 000~ ~~~~~~ ~ ~~~~~~~ - e - r00 4o, tXucd 3> / Rhorarrrboi GN GUI N EA- Bei r GUINEA-,ISSAU g /-' D/f mdw/vs fs dPmpfbv*hil f g - :,t4fmr Regional bo, dorles~~~Redond FIRST ROADS PROJECT ROAD NETWORK NUQO h00- aebrasRoad Reriab,lmt-to an,d \ ffW 14en n/ Wbfeit d i. A =ehed ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~~~~~~~~~~~~~~~~~~o inan \ ,2 (J wShff mtowWs6Ed,whw. . i o 10 2a 30 40 50~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 d -t ai', .. Unpo rod -m c Pod 10006 0/ '.6se&OrsU Soamps A Workro.ps I Mod flats _110