Zambia - Transport Engineering and Technical Assistance Project (TETAP)

 ICRR 10274 Report Number : ICRR10274 ICR Review Operations Evaluation Department 1. Project Data : OEDID: OEDID : C2515 Project ID : P003246 Project Name : Transport Engineering and Technical Assistance Project (TETAP) Country : Zambia Sector : Highways L/C Number : Credit 2515-ZA Partners involved : None Prepared by : Antti P. Talvitie, OEDST Reviewed by : Andres Liebenthal, Group Manager : Alain Barbu Date Posted : 03/03/1999 2. Project Objectives, Financing, Costs and Components : Objectives : There were three objectives (i) Design and implement transport sector policy reforms; (ii) strengthen Government capacity to plan and coordinate public expenditures for roads and to monitor sector performance; and (iii) carry out the preparatory engineering work for the first year program of the (proposed) multi-year Roads Rehabilitation project. Components : (i) Policy support for reclassifying the road network, establishing an autonomous Highway Authority, proposing arrangements road financing (a road fund) and appropriate legislation; (ii) project preparation for engineering studies for the first year of the prioritized road rehabilitation program, feasibility or design studies for key projects and associated tender documents; (iii) institutional development included a range of studies and technical assistance . Among them were TA to install a highway management system, equipment management and privatization study, a study of local construction and consulting industry, establishment of a feeder roads section in the Ministry of Local Government and Housing (MLGH), and training a private accounting firm to assist relevant agencies to maintain project accounts and carry out annual audits . During implementation several additional subcomponents in these three categories were added to take advantage of project cost savings . Costs and Financing : The project costs were USD8.5 million (USD9.0 million at appraisal). The costs were financed by a Bank credit for USD8.5 million, of which USD0.6 million was canceled at closing, and by a USD 0.7million government contribution. The credit was approved in September, 1993 and closed in June, 1998, one year later than planned. 3. Achievement of Relevant Objectives : The project objectives were largely achieved; although the second objective --to strengthen the Government's capacity to plan road sector expenditures and monitor road sector performance --still needs support for full and sustained achievement. The sector policy and engineering design objectives were fully achieved . 4. Significant Achievements : The significant achievement is the establishment of the road fund and the National Roads Board (NRB) with capacity manage the road fund (even without a fully supportive legal framework !). The NRB, with significant representation from the private sector, has been an important actor for increased road financing in Zambia . Another significant achievement, in MLGH, was the reorganization and staffing of a department responsible for the feeder roads . 5. Significant Shortcomings : There are no significant shortcomings . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Substantial Substantial Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory  Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : There are two general lessons . First, successful policy and institutional restructuring requires political commitment with realistic goals and carefully developed and evaluated alternative courses of action . The affected (private) interests must be parties to the decisionmaking process . Second, the intended outputs planned for achieving the objectives (of a technical assistance project ) should not be specified too tightly . Rather, both the processes and the outputs should remain flexible in order to manage for the results desired . 8. Audit Recommended? Yes No Why? This project is one of the success stories in restructuring State road administrations and establishing a method for stable funding . It should be audited, once the implementation of the five -year road program (ROADSIP) and the follow-on project to support ROADSIP is underway to evaluate how the institutional and operational improvements achieved under this credit function in practice . 9. Comments on Quality of ICR : The ICR is comprehensive and well written . It describes clearly the achievements and the process of credit implementation. The 'Future Operation' section could have more explicitly focused on how the achievements of this project will be sustained.