Document of The World Bank Report No: 21839 PROJECT APPRAISAL DOCUMENT ONA PROPOSED CREDIT IN THE AMOUNT OF SDR127.4 MILLION (US$162.0 MILLION EQUIVALENT) TO THE REPUBLIC OF MOZAMBIQUE FOR PHASE 1 OF THE ROADS AND BRIDGES MANAGEMENT AND MAINTENANCE PROGRAM (APL-Phase 1) MAY 23, 2001 Transport Group Angola, Malawi, Mozambique Africa Regional Office CURRENCY EQUIVALENTS (Exchange Rate Effective 4/30/01) SDR 1.00 = US$1.27227 Currency Unit = Mozambique meticais US$1.00 = MZM 19,000 MZM 1.00 = US$0.000053 FISCAL YEAR January 1-December 31 SYSTEM OF WEIGHTS AND MEASURES 1 meter (m) 3.28 feet 1 hectare (ha) = 2.47 acres 1 kilometer (kilometer) = 0.625 miles 1 liter = 0.220 imperial gallons 1 cubic meter = 220 imperial gallons Vice President: Callisto Madavo Country Director: Darius Mans Sector Manager: Maryvonne Plessis-Fraissard Task Team Leader: Abdelmoula Ghzala - ABBREVIATIONS AND ACRONYMS ADB African Development Bank ADF African Development Fund AFD Agence FranZaise de D6veloppement ANE Adminstrac,o Nacional de Estradas ASDI Swedish International Development Agency BADEA Arab Bank for Economic Development of Africa CAS Country Assistance Strategy DANIDA Danish International Development Agency DEP Departamento de Estradas e Pontes DFID British International Development Agency DNEP Direcqao Nacional de Estradas e Pontes EDF European Development Fund EU European Union FAC Fonds d' Aide et de Cooperation (France) IDA International Development Association IsDB Islamic Development Bank HDM Highway Design Model (World Bank) HNMS highway network management system JICA Japan International Cooperation Agency KDF Kuwait Development Fund KfW Kreditanstalt fur Wiederaufbau (Germany) MICOA Ministry of Coordination for Environmental Affairs MOPWH Ministry of Public Works and Housing MOT Ministry of Transport MPF Ministry of Planning and Finance NGO nongovernmental organization NDF Nordic Development Fund NORAD Norway Development Agency OPEC Fund Oil Producing and Exporting Countries' Fund for Development ROCS Roads and Coastal Shipping Project SOE statements of expenses UNDP United Nations Development Program UNICEF United Nations Children's Fund UNCDF United Nations Capital Development Fund USAID United States Agency for International Development Mozambique: Roads and Bridges Management and Maintenance Program CONTENTS A: Program Purpose and Project Development Objective ....................................................................3 Al. Program purpose and program phasing .................................................................... , . 3 A2. Project development objectives ....................................................................3 A3. Key performance indicators ....................................................................3 B: Strategic Context ....................................................................3 B 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project .......... ...........3 B2. Main sector issues and government strategy ....................................................................4 B3. Sector issues to be addressed by the project and strategic choices .............................................7 B4. Program description and performance triggers for subsequent credits ................ .......................8 C: Project Description Summary ....................................................................9 C l. Project components .................................................................... 9 C2. Key policy and institutional reforms supported by the project ................................................. 11 C3. Benefits and target population ................................................................... 11 C4. Institutional and implementation arrangements ................................................................... 11 D: Project Rationale .................................................................... 14 Dl. Project alternatives considered and reasons for rejection .......................................................... 14 D2. Major related projects financed by the Bank and/or other development agencies .................... 15 D3. Lessons learned and reflected in the project design .................................................................. 15 D4. Indications of borrower commitment and ownership ................................................................ 16 D5. Value added of Bank support in this project ................................................................... 17 E: Summary Project Analysis ................................................................... 17 El. Economic .17 E2. Financial .18 E3. Technical .19 E4. Institutional .19 E5. Environmental .19 E6. Social .21 F: Sustainability and Risks ............................. 23 Fl. Sustainability ............................. 23 F2. Critical risks ............................. 23 F3. Possible controversial aspects ............................. 24 G: Main Credit Conditions ......................... 24 H: Readiness for Implementation ......................... 25 I: Compliance with Bank Policies ......................... 25 Annexes Annex 1: Project Design Summary ........................................ 26 Annex 2: Project Description ........................................ 33 Annex 3: Estimated Project Costs .................................................... 51 Annex 4: Cost Benefit Analysis Summary ........................................ 55 Annex 5: Financial Analysis Sunimary ........................................ 72 Annex 6: Procurement and Disbursement Arrangements ........................................ 85 Annex 7: Project Processing Budget and Schedule ........................................ 96 Annex 8: Documents in the Project File ........................................ 97 Annex 9: Statement of Loans and Credits ........................................ 98 Annex 10: Mozambique Country at a Glance ....................................... 100 Annex 11: Summary Environmental Management Plan ...................................... 102 Maps Mozambique Roads and Bridges Management and Maintenance Program Project Appraisal Document Africa Regional Office AFC02 Date: 05/23/01 Team Leader: Abdelmoula Ghzala Country Manager/Director: Darius Mans Sector Manager/Director: Maryvonne Plessis-Fraissard Project ID: 1785 Sector: TH-Highways Lending Instrument: Adjustable Program Loan (APL) Theme(s): Poverty reduction . Poverty Targeted Intervention: No Program FinacigData _________ APL Indicative Financing Plan Estimated inplementation Borrower _ Period (Bank FY) IDA Others Total Commitment Closing US$ m % US$ m US$ m Date Date APL 1 Credit 162.0 23% 541.6 703.6 06/30/2001 06/30/2005 Government of Mozambique APL 2 Credit 135 30% 318 453 07/01/2005 06130/2008 Government of _______ __ = _ ________ _________ Mozambique APL 3 Credit 135 25% 409 544 07/01/2008 06/30/2011 Government of __ =_______ _ =_______ _____= __ L___________ _ ,Mozambique Total 432 25% 1,268 1,700_ _- Project Financing Data I Loan [XI Credit f I Grant [ I] Guarantee [ ] Other [Specify] For Loans/Credits/Others: Amount (US$m): 162.0 Amount (SDRm): 127.4 Proposed terms: [] To be defined [X] Multicurrency [] Single currency [I Standard Variable [XI Fixed [] IIBOR-based Grace period (years): 10 years Years to maturity: 40 years Commitment fee: N/A percent Service charge: 0.75 percent Financig pl1an:U$mil Source Local For~~~~~~~~~~~~teign Total IDA 33.5 128.5 162.0 Government of Mozambique budget 13.5 0.0 13.5 Road Fund 117.1 80.7 197.8 Parallel financiers (details of participation to be 93.9 236.3 330.3 firmed up during appraisal) Total 258.0 445.6 703.6 Parallel financiers:: ADB; ADF; AFD; ASDI; BADEA; DANIDA; DFID; EDF; EU; FAC; Irish Republic, IsDB; JICA; KDF; KfW; NDF; NORAD; OPEC Fund; USAID. Borrower: Government of Mozambique Responsible agency: Ministry of Public Works and Housing through the autonomous Administrac,ao Nacional de Estradas (ANE) Address: Maputo, Mozambique Contact Person: Mr. Carlos Fragoso, Chairman Tel: 258-1-475157 Fax: 258-1- 475533 E-mail: Pcaane@Teledata.Mz (Carlos Fragoso), Other agency(ies): Address: Contact Person: Tel: Fax: E-mail: Estimated disbursements (Bank FYIUS$ million): Annual 36.9 38.2 38.9 40.1 8.0 Cumulative 36.9 75.1 113.9 154.0 162.0 Program implementation period: September 2001-June 2011, Phase 1: September 2001-June 2005 (46 months) Expected effectiveness date: 09/01/2001 Phase 1 expected closing date: 06/30/2005 2 A: Program Purpose and Project Development Objective Al. Program purpose and program phasing The overall purpose of the proposed program is to stimulate economic growth and contribute to poverty reduction through improved road infrastructure, better sector policies, and enhanced roads sector management. Improved road transportation helps generate growth and reduce poverty by lowering transportation costs and stimulating development of markets. This encourages farmers to increase production and provides them with opportunities to do so by making it easier to obtain inputs and sell outputs. Improved road transportation also makes it simpler for people to go to school, visit health facilities and travel to jobs in nonagricultural sectors. In the case of Mozambique, road improveiments bring about national integration, social equity and political unity by helping to integrate the poor and other vulnerable groups into the society. They also place the country in a critical strategic role as the transport provider for neighboring landlocked countries, while opening external markets for trade. The program will be implemented over ten years in three phases, each having well defined objectives and scope. Phase one (APLI, four years) will focus on carrying out systematic programmed periodic maintenance of the maintainable network of paved and unpaved roads and prioritized rehabilitation, implementing institutional and policy reforms, and completing preparation for the long-term investment program. Phases two and three (APL2 and APL3, three years each) will focus on periodic maintenance and rehabilitating priority roads and bridges; strengthening road management capacity; and putting into place a long-term program to improve road safety. The second and third phases will be contingent on successful implementation of phase one activities and satisfaction of agreed triggers. A2. Project development objectives The specific APLl objectives are to (a) improve the coverage and condition of roads and bridges; (b) strengthen the country's capacity to manage and administer the road sector effectively and transparently, with efficient and sustainable institutional arrangements; (c) establish financing mechanisms to ensure sufficient, timely, stable and secure flow of funds for roads maintenance, affordable at the macroeconomic level and for the road users; and (d) improve road transport safety. Secondary objectives are to help prevent the spread of AIDS and encourage employment of women in the roads sector. A3. Key performance indicators Key performance indicators include measures of improved road coverage and quality, such as size of the maintainable network, kilometers of roads under periodic maintenance, kilometers rehabilitated, traffic volumes, truck freight rates, and percentage of roads in fair or good condition. They include indicators of improved roads sector policies and management, such as implementation of institutional reforms intended to improve roads management; installation of new financial management systems for Administra,co Nacional de Estradas (ANE), the Road Fund; and periodic transfer of required amounts to the Road Fund. They include management benchmarks, such as the time for tendering, contracting road works and payment to contractors; and the percentage of works completed on time and within budget. Finally, they include measures of social impacts, such as decreases in number and severity of accidents per vehicle kilometer traveled, increase in HIV/AIDS awareness of people working on and living near roads included in the program, and number of women workers employed by the program. B: Strategic Context B]. Sector-related Country Assistance Strategy (CAS) goal supported by the project Document number: IDA/R2000-76[IFC/R2000-80] Date of latest CAS discussion: 06/01/00 3 The proposed program strongly supports the government and CAS objectives to promote economic growth to reduce poverty and improve the well-being of the Mozambican people. The Government's growth and poverty reduction strategy paper (PRSP) and the CAS explicitly identify increased investment in infrastructure (roads, in addition to energy, water and communications) as the single most efficient contribution to long-term growth and to improved well-being of the poor. The program will contribute to the PRSP and CAS goals in several ways. It will help create economic opportunities (first CAS pillar) by improving rural access to markets and services (particularly of densely populated and high agricultural potential areas), improving traders' access to neighboring countries and maintaining the principal national and coastal links to promote tourism and national unity. It will also support government efforts to rehabilitate and maintain feeder roads serving the rural poor. It will help increase human capabilities (second CAS pillar) by supporting activities to prevent the spread of AIDS and reducing injuries and deaths due to traffic accidents, and promoting gender equity by encouraging employment of women in the roads sector at all levels and in all capacities and increasing female access to transportation. It will help improve governance and public administration (third CAS pillar) by establishing an efficient and accountable institutional framework for roads management and administration, fostering private sector participation in road rehabilitation and maintenance, and strengthening decentralized road planning and management processes. B2. Main sector issues and government strategy Mozambique' s road network comprising some 28,000 kilometers of paved, earth and gravel roads (with paved roads accounting for about 5,200 kilometers of the network)-was badly damaged or neglected during the country's 17 years of civil conflict (see Annex 5, Table A5.2). During the conflict, the ability of the National Directorate of Roads and Bridges (DNEP) to maintain roads was severely harnpered by security concerns. However, other factors also contributed to DNEP's poor performance, notably the severe shortage of funds for maintenance, lack of institutional capacity to manage the network, and inefficient operational policies and procedures. At the time the peace agreements were signed in 1992, it was estimated that less than 10 percent of the network was in good condition and more than one-third of roads were in such poor condition they were not passable on a regular basis. The rural roads (some 16,000 kilometers of low traffic tertiary roads) were in particularly poor condition, with many being impassable. The poor condition of roads contributed to high vehicle operating costs, high transport costs and consequently low traffic volumes, posing major constraints to the marketing of farm produce and to economic growth generally. Moreover, most of Mozambique's transport infrastructure was designed to serve the colonial economy, providing access to sea ports for landlocked countries in southern Africa. Consequently, although direct lateral routes from countries such as Malawi and Zimbabwe to the ports of Beira and Maputo are adequate, north-south links within Mozambique are still weak. This has serious implications, particularly for the agricultural sector, as large areas of the country, especially the agriculturally productive areas of the north and center, remain isolated and poorly integrated into national markets. Achievements in the roads network and sector management since 1992 Bank and other donor assistance in the sector have led to major improvements in the condition of Mozambique's road network since 1992. Under the First and Second Roads and Coastal Shipping Projects (ROCS I and ROCS2, approved in 1992 and 1994 respectively), over 3,800 kilometers of primary, secondary and tertiary roads have been rehabilitated; 3,000 meters of metallic bridges have been laid; 2,000 kilometers of roads have received periodic maintenance; and about 14,000 kilometers of roads are benefiting from routine maintenance annually since 1999. Currently, an estimated 25 percent of the 4 network is in good condition and about 39 percent is in fair condition (Annex 5, Table A5.1). Only about 10 percent of classified roads, primarily unimproved rural roads, are impassable during periods of heavy rainfall. These improvements have led to significant traffic growth during 1994-98 and helped integrate formerly isolated rural areas into the national economy, benefiting farmers. The two ROCS projects have also brought about significant progress in institutional strengthening and building of human resource capacities through education and training in the highway subsector and other transportation agencies. Important institutional and policy reforms have been initiated, including the creation of the Road Fund, separation of force accounts construction companies from DNEP (presently ANE), and privatization of equipment pools and of CETA (previously, a state-owned construction company). In addition in 1998 the government issued its roads policy. In 1999 the government changed DNEP into ANE, a public agency separate from the civil service, with dual responsibility for technical/operational matters and for road financing (separate directorates), under a board of directors with representatives from the public and the private sectors and academia. What remains to be done Although management of the road network has improved since ROCS2 was appraised, the institutional and policy reform process is yet to be completed. During an October 1999 seminar organized by ANE and the ministry of public works, the government announced plans to implement second and third generation institutional reforms over the following two years. The third generation reforms in particular are compatible with the Bank's recommendations and with the models of the Road Management Initiative. They include separating the funding and planning functions that are currently undertaken by ANE directorates; establishing the Road Fund as an autonomous legal entity, governed by a representative board of directors (including representatives from the private sector) and managed by a professional adrninistration; ensuring that revenues intended for road maintenance flow fully and directly into the Road Fund; and strengthening capacity of subnational govemments to undertake road works. These actions will create greater transparency, improve financial management, establish a clearer allocation of responsibilities in road management, and guarantee the steady and regular flow of funds for roads maintenance. Further, Mozambican private sector participation in road construction is still lagging. This is partly due to the delays in privatizing CETA, difficult access to equipment and credit, and a tax system that favors foreign over local firms. ANE and the association of Mozambican contractors are now actively cooperating in analysis of these issues. More also needs to be done with upgrading Mozambique's road network. To further stimulate economic growth, and reduce poverty among Mozambique's rural people, rehabilitation needs to be expanded to the densely populated and economically productive areas of the north and center. Zambezia, the country's most densely populated province, is still not connected to either the north or the south with paved roads. Moreover, many of the country's regions with highest population density are not located near viable roads of any kind paved, gravel, or earthen. Thus, it is critical to address not just the primary roads network, but also the secondary and tertiary ones, especially rural roads. On road safety much more needs to be done. Road accidents, and consequent deaths, injuries and property damage impose important costs on the economy of the country. Finally, it is now well understood that improved roads contribute to the spread of HIV/AIDS and result in high risks for road workers, truckers and for people living nearby or using roads. The rapid spread of HIV/AIDS in southern Africa means that roads programs in this region must now include measures to prevent HIV/AIDS among workers and people living nearby and using roads. 5 The main sector issues to be addressed in the future can be summarized as follows: * Improving the coverage and condition of the roads network * Connecting agriculturally productive areas to the rest of the country through improvements in the road network * Strengthening capacity to manage road sector activities, effectively, sustainably and transparently, at central and local levels * Ensuring the sufficient, timely and stable flow of funds for roads maintenance, and establishing policies and processes for reviewing and adjusting funding sources for road maintenance * Involving road users in setting road priorities and in monitoring and evaluation of the roads program * Decentralizing responsibilities to the regional institutions best able to bear them, and ensuring the accountability and transparency of these institutions * Fostering the development of the national road construction industry, and finding the appropriate balance between the public and private sectors in the roads sector * Improving roads safety * Reducing the spread of HIV/AIDS that is associated with improved road networks. Government strategy The government's strategy, delineated in its road policy paper issued in August 1998 and further elaborated in its integrated road sector strategy, focuses on improving the roads and bridges to remove constraints to growth. Thus, it gives priority to expanding links to agricultural areas, securing access to ports, upgrading corridors to neighboring countries to encourage industrial investment, and improving the coastal road network to stimulate development of tourism. The cornerstone of the Government's network strategy is improvement of the main north-south road that runs from Maputo to Nampula and from there on to Pemba. This road will contribute to national unity, promote internal commerce, and improve access to major social, political and commercial centers for many people by significantly reducing transportation costs and travel times within the country. A second goal for the primary network is to ensure secure and continuous connection of all provincial capitals to the network. The target is to increase the proportion of roads in good or fair condition of the network. With respect to the secondary road network, the government's priorities are to maintain and rehabilitate roads which are economically viable or serve social objectives such as regional balance, or both. As with the entire network, selecting roads will be an ongoing process, involving regular review of multiyear work plans. Special attention will be paid to rehabilitating roads, which serve as international and domestic corridors, especially the Nacala, Beira and Maputo corridors. As for tertiary roads, priorities are to improve access to rural areas and markets, especially in densely populated areas. During the ten-year program, the maintained tertiary network will nearly double from just over 5,900 kilometres to about 1 0,000 kilometres. Government has now introduced, through the integrated road strategy process, multicriteria prioritization for rehabilitation and rolling multiyear programming for periodic and routine maintenance, each year defining the program for the next three years. This is a planning and programming tool for setting road rehabilitation and maintenance priorities and allocating budget resources, taking into account the affordable levels of funds and the macroeconomic constraints. The main criteria and their weights to define the priorities for rehabilitation are: economic feasibility (40 percent), national integration (20 percent), accessibility (20 percent), social factors (15 percent), and environment (5 percent). These criteria reflect stakeholders' priorities expressed during workshops held around the country (Maputo, Beira and Nampula) in preparation of the integrated roads strategy. The workshops involved stakeholders from central and local government agencies, the private sector, NGOs, women's groups, academic 6 institutions, donors and road users. Within ten years government expects to systematically maintain all roads that have been specified in the annual programs, eliminating backlogs. This will help prevent road deterioration and thus expensive rehabilitation. With regard to the organization of the sector, the road policy and strategy emphasize the need for (a) providing sufficient resources for undertaking yearly maintenance of the roads, (b) decentralizing both management and decision-making, (c) strengthening institutions responsible for the management of the road networks, and (d) increasing use of local resources in roads works, including local contractors, local labor (especially women), and local materials; Government's strategy also includes measures to address potential social impacts of the roads program. It will continue its commitment to incorporate HIV/AIDS prevention activities as part of all roads projects. Government will also implement a comprehensive approach to road safety, incorporating engineering, education, and enforcement efforts. B3. Sector issues to be addressed by the project and strategic choices The proposed program will assist the government to (a) improve coverage and condition of roads and bridges; (b) strengthen capacity to manage road sector activities; (c) establish, effective, efficient and sustainable institutional arrangements for the sector; (d) establish mechanisms for sustainable financing of road maintenance; (e) promote use of local resources in roads construction and maintenance; and (f) support efforts to reduce the spread of HIV/AIDS and improve road safety. Strategic choices Choice of Bank instrument. An adjustable program loan (APL) is the appropriate instrument to support the sector. The government has a long-term vision for the sector and has recently defined specific targets for sector reforms which can be used as triggers for phases two and three of an APL. Design, engineering and bid documents for subsequent phases can be prepared under funding available in preceding phases. An APL would also serve as an excellent vehicle to coordinate donor assistance to the sector. Size of the roads program. The size of the program is large in comparison to past outlays in the sector. However, ANE has demonstrated its capacity to manage large expenditures; it has been handling over US$100 million in contracts for each of the past three years (excluding routine maintenance and periodic maintenance financed by the Road Func1 and executed by ANE) . The government has also expressed its willingness to commit funds for ongoing maintenance needs within the country's medium term expenditure framework. Moreover, funds will become available through the Highly Indebted 'Poor Country debt relief initiative, which are intended to finance Poverty Reduction Strategy priorities. Roads is one of the top priorities of the Poverty Reduction Strategy. However, the project and program will be reviewed either at midterm review or prior to approving Phase 2 of the APL, if there is a clear signal that the expected funds are not being made available, or during implementation if the agreed funds are not forthcoming. Balance of roads between main, secondary and tertiary roads. With particular focus on periodic maintenance, Government's road program, outlined in the Mozambique Integrated Road Sector Strategy, gives priority to (a) main roads which contribute to national integration, thus ensuring economic and personal mobility; (b) roads that provide direct access to zones with existing or latent production potential, thus stimulating growth; and (c) roads that reach areas of the country where the road network has been neglected, thus promoting greater regional balance (see section B2, government strategy above). IDA will support government's program, focusing on the trunk road EN I-National Road 1, the top 7 priority in the strategy and which generates substantial economic benefits. Planned interventions over the four year period of APLI are balanced as follows: (In % of kms executed) Primary Secondary Tertiary Routine Maintenance 22 37 41 Periodic Maintenance 25 55 20 Rehabilitation 19 35 46 Total 22 39 39 Focusing on maintenance, rehabilitation and upgrading rather than opening new roads. Mozambique has a large road network, a legacy of colonial days, part of which is still in serious disrepair. The program will therefore focus on maintaining, rehabilitating and upgrading the existing road network, rather than on opening new roads. This will also make it easier for government to meet future maintenance needs within its budget constraints. Choice of processes and technologies for roads works. To the extent practicable the program will use local contractors for roads works. Experience from ROCS2 shows that local contractors have the capacity to undertake routine maintenance and some periodic maintenance, but not to handle the large contracts or complex road works required for major roads rehabilitation and upgrading. The program will therefore use international contractors for major road works, but encourage them to subcontract or associate with local companies, thus helping to further develop local capacity. In addition, the program will finance activities to strengthen capabilities of local contractors, including training in labor-based methods, and will increasingly draw on them as their capacity increases. Decision to include activities addressing HIV/AIDS and gender issues. Given the cross-cutting developmental implications of the HIV/AIDS epidemic, the government has recognized that effective HIV/AIDS prevention, care, and control strategies require a multisectoral response. The Bank is assisting by including appropriate HIV/AIDS prevention and care activities wherever possible in its programs. ROCS2 project has already been addressing these issues through special HIIV/AIDS actions and clauses in contractors contracts providing information and condoms to roads workers, road users and communities along program roads. The proposed program will build upon these initiatives. As for gender issues, advancing the status of women requires action in as many areas of the Bank's activities as possible. During the past two years, ANE's social concerns have deepened and there is now considerable interest in the agency to address gender issues. The success of the ROCS I feeder roads project in increasing female employment in roads works provides a model upon which the proposed program will build and improve, drawing on lessons from experience. B4. Program description and performance triggers for subsequent credits The APL will be implemented over ten years in three phases. The first phase will last four years and the second and third phases will last three years each. Phase one of the APL will focus on (a) routine and periodic maintenance, and rehabilitation of priority roads and bridges as defined under the integrated road sector strategy, (b) implementing institutional and policy reforms needed for sustainable and effective road sector management, (c) a phased rural roads maintenance program, (d) intensifying HIV/AIDS prevention activities, (e) implementing a road safety program, and (f) carrying out the analytical and preparatory work necessary for phase two of the program. The routine maintenance is 100% financed by the Road Fund. Phase two activities will focus on maintenance and rehabilitating the country's major roads and bridges (as defined through the updated integrated road sector strategy), upgrading rural roads, strengthening 8 institutions, continuing with implementation of the road safety program, the HIV/AIDS program and gender initiatives, and conducting the analytical and preparatory work for phase three investments. Phase three activities will be similar to those of phase two. They will be defined in detail during phase two, and be based on lessons derived from the earlier phases of the program. The second phase will be contingent on satisfaction of the following triggers: * Agreed phase one road works have been substantially completed and performance indicators satisfactorily achieved. * The Road Fund is made a separate legal entity from ANE. * A Road Board is established and functioning one year prior to phase 1 closing. * Financial management of ANE and the Road Fund is satisfactory as assessed by financial and technical audits. * Government has timely provided agreed level of funds to the Road Fund and for counterpart funds. * Satisfactory implementation of the road safety plan. * Satisfactory implementation of HIV/AIDS prevention measures in roads sector. * Satisfactory completion of all preparatory activities (engineering designs and tender documents for first set of phase two investments completed, environmental impact assessment and social impact assessment for phase two investments completed). Phase three will be contingent on implementation performance, institutional performance, financial performance, and completion of all preparatory activities. Specific triggers are: * Agreed phase two road works have been substantially completed and performance indicators satisfactorily achieved * Financial management of ANE and the Road Fund is satisfactory. * Government has timely provided agreed level of funds to the Road Fund and for counterpart funds. * Satisfactory implementation of the road safety plan. * Satisfactory implementation of HIV/A1DS prevention measures in the sector. * Satisfactory completion of all preparatory activities. During the three phases of program implementation, the Bank will gradually shift its support frcm periodic maintenance to rehabilitation, as the Road Fund's finances improve and it takes over responsibility for periodic maintenance. By the end of phase three of the program, the Road Fund will cover 100 percent of periodic maintenance in addition to all routine maintenance. To support this shift, IDA help for technical assistance and training will also be concentrated in phase one, gradually falling as government capacity grows. C: Project Description Summary Cl. Project components The Mozambique Roads and Bridges Management and Maintenance will be a nationwide program, comprising the following components: Component A: Roads and bridges works * Routine maintenance. * Periodic maintenance. * Rehabilitation of priority roads and bridges. 9 * Rural roads and bridges. * Emergency works for roads damaged by flooding. * Road safety including installation and maintenance of road structures designed for safety. * Preparation of detailed engineering designs and tender documents, and supervision of works. Component B: Policy reforms and institutional strengthening for sustainable and effective road sector management * Establishment of an institutional framework for the sector, which ensures effective, transparent and accountable roads management and administration. This will include clear separation of the financing and allocation functions (under the Road Fund) from the planning of activities, the management of contracts and supervision of construction and maintenance, and creation of a Road Board responsible for overseeing and monitoring performance in the overall sector. ANE and the Road Fund will be supported and strengthened in their respective roles. * Establishment of the most appropriate financial management framework for ANE, the Road Fund and program and projects management, to ensure the sufficient, timely, stable and secure flow of funds to cover roads maintenance needs. * Establishment of a system of technical and financial auditing and performance monitoring for the Road Fund. * Preparation of a strategy for human resources development, focusing on procurement, disbursement, accounting, financial management and project management in government road and transport management institutions. * Strengthening of the program started under ROCS2 to help prevent the spread of HIV/AIDS. * Implementation of road safety measures. Measures will include improved collection of traffic accident statistics for identification of black spots, safety audits on the major trunk roads, incorporation of additional safety features and requirements in road design. * Promotion of local contractors through training (including on labor-based methods) and other activities. * Support of the Social Unit of ANE responsible for addressing issues of AIDS, poverty alleviation, environment and gender. A socioeconomic impact assessment of improvement of roads on poverty reduction is currently underway and will provide the baseline data against which future progress can be measured. Component C: Strategy formulation and preparatory activities for phases two of the roads investment program * Revisions and updating of the national integrated road sector strategy to reflect emerging priorities identified during ongoing stakeholder consultations. * Preparation of environmental impact assessment for phase two. * Preparation of social impact assessments for phase two investments. The social impact assessments will include baseline information for social monitoring, a participatory gender assessment, and assessments of the impacts of HIVIAIDS prevention measures. * Preparation of socioeconomic impact assessments of roads works for phase two investments. * Detailed design and preparation of tender documents for roads activities of phase two investment. 10 Indicative Percent of Bank- Percent of Component Costs Total rinancing Bank- (US$My (US$M) rinancing A. Roads and bridges works 651.1 92.5 138.6 85.5 B. Policy reforms institutional 40.5 5.8 16.8 10.3 strengthening C. Strategy formulation and 12.0 1.7 6.7 4.1 preparatory activities Total Project Costs 703.6 100 162.0 100 Total Financing Required 703.6 100 162.0 100 C2. Key policy and institutional reforms supported by the project Key policy and institutional reforms to be sought include: (a) establishment of a sustainable, effective and efficient institutional framework for the sector, including clear separation of the financing and allocation functions (under the Road Fund) for maintenance activities from the planning, management of contracts and supervision of construction and maintenance; (b) creation of a Road Board responsible for overseeing and monitoring performance in the overall sector; (c) decentralization of responsibilities for rural roads maintenance; (d) establishment of appropriate financial management systems for ANE and the Road Fund; (e) improved policies for road safety; (f) promotion of private sector involvement in roads construction and maintenance; (g) creation of mechanisms to generate funds internally for road maintenance, including collection of road user charges. C3. Benefits and target population The program will stimulate economic growth and reduce poverty by increasing quality and coverage of roads, enhancing road safety, and improving sector policies, administration and management. The program will contribute to the national effort to reduce the incidence and impact of HIV/AIDS through its fully integrated HIV/AIDS awareness and prevention program for road workers, ANE staff, road users and communities along program roads. While the program will benefit the entire population, rural dwellers (who comprise 64 percent of the population) will benefit the most as investments will be targeted to linking underserved rural areas with the country's regional and national road network. This will provide rural people with better access to markets, health and education facilities and other basic services. The program will also disproportionately benefit women by encouraging the employment of women at all levels and in all capacities. In addition, the program will benefit private sector contractors, by providing them with the opportunities to participate in construction and maintenance activities. C4. Institutional and implementation arrangements Program implementation period. The program will take place over ten years, 2001-2011. The project (phase one of the program) will take place over four years, 2001-2005, completed by December 2004 and closed by June 2005. Program coordination and oversight. During phase one, the Ministry of Public Works and Housing (MOPWH) will be responsible for policy guidance and overall program oversight, and will ensure coordination and cooperation among central, regional and local authorities, government agencies involved I I with program implementation, and the private sector. During phases two and three, the Road Board established under phase one will take over the role of program oversight and coordination. Currently, the ANE Board is chaired by the president of ANE and comprises officials of government agencies (including the ministry of finance), and representatives of the private sector and academic institutions. Executing agency. The National Roads Administration (Administracao Nacional de Estradas (ANE)) will execute the program. Implementation arrangements. Implementation of the program will be split between the central level and provincial and local authorities. At the central level, ANE's directorate of national roads (Direczo de Estradas Nacionais (DEN)) will manage operations for primary and secondary roads, and its directorate of regional roads (Direc,o de Estradas Regionais (DER)) will advise and assist local authorities and municipalities to implement the rural roads projects. ANE (formerly DNEP) has the capacity and capabilities to implement such a program since it has successfully implemented ROCS 1 and ROCS2 projects, handling over US$100 million in procurement and disbursements for each of the past three years (excluding the routine maintenance and the periodic maintenance 100% financed by the Road Fund and executed by ANE). Agreements and distribution of tasks among DEN and DER and its provincial offices, provincial governments, and autonomous city councils will be specified in the new ANE's internal rules. Responsibilities for routine maintenance on both national roads (primary and secondary) and on regional roads (tertiary) will devolve to the provincial offices (DEPs), while in the short and medium terms, rehabilitation will continue to be centrally planned and implemented. Planning and contract management support will be provided through DER, with financing from the Road Fund. The project will assist ANE strengthen its capacity in procurement through technical assistance based on an assessment of procurement capacity of implementing agencies at the central, provincial governments, and local levels, carried out during project pre-appraisal. Parallel financing arrangements. As with ROCS2 many development partners are interested in supporting the Mozambique Roads and Bridges Management and Maintenance Program. Commitments from development partners total about US$330 million for Phase 1. Donor contributions will be made through parallel financing, rather than cofinancing arrangements to smooth implementation. During implementation, a donor's working group will meet monthly to discuss implementation status and outstanding issues. The government, the ANE Board (the Road Board, later on), and road authorities will participate in the meetings at the request of the working group. Procurement arrangements. Consultant services, works and equipment to be financed under the IDA credit will be procured according to World Bank procurement guidelines. Accounting, financial reporting and auditing arrangements Reporting to ANE Board through the General Manager (to be appointed) , the Chief Financial Officer (CFO) will be responsible for ensuring that financial management and reporting procedures will be carried out in a manner acceptable to the Government, the ANE Board, the World Bank and other donors'. The principal objective of the ANE's financial management systems (FMS) is to support management in their deployment of limited resources with the purpose of ensuring economy, efficiency and effectiveness 1 The responsibility for the transactions and control of funds for the routine maintenance component rests with the Road Fund, a separate implementing Directorate within the ANE, that will become an independent legal entity at a future date. A separate FMS is being implemented for the Road Fund and separate external audits will be undertaken. 12 in the delivery of outputs required to achieve desired outcomes, that will serve the needs of the people of Mozambique. Specifically, the FMS must be capable of producing timely, understandable, relevant and reliable financial information that will enable management to plan, implement, monitor and appraise the program's/project's overall progress towards the achievement of its objectives. For ANE to deliver on the aforementioned objectives, its FMS is being developed in accordance with the Financial Management Action Plan presented in Annex 5-C. Salient features of the Action Plan include: the retention of a firm of consultants on terms of reference approved by the Bank for the supply and installation of, training in, and support of two autonomous Financial Management Software Systems (FMSs) for the ANE and the Road Fund; the establishment of a representative Financial Management Committee; the recruitment of a CFO and the availability of support staff; the recruitment of a Chief Financial Internal Auditor; capacity building; the operation of a Fixed Assets Register and an Invoicing Control Schedule to monitor contracts; monthly bank reconciliations and quarterly reporting of financial information; cash flow management including variance analysis. As a transitional arrangement, until such time as the new FMS is operating satisfactorily, the project accounts will be maintained using ANE' s present accounting system (i.e. a combination of the HOGIA accounting package and Excel), supported as appropriate with manual records. That system is documented in a Manual of Administrative and Accounting Procedures. Relevantly qualified, experienced and independent auditors will be appointed on terms of reference acceptable to the Bank. Specifically, audited financial statements for the ANE (project) and the Road Fund will be submitted to the Bank within six months after the financial year end. Periodic technical audits for the ANE (project) and the Road Fund will also be undertaken. By Credit effectiveness, ANE will not have in place a FMS that can provide, with reasonable assurance, accurate and timely information as required by the Bank for PMR-based disbursements i.e. the Project Management Report (PMR). Thus, in the short-term, existing disbursement procedures, as outlined in the Bank's Disbursement Handbook, will be followed i.e. Direct Payment, Reimbursement and Special Commitments. However, the successful implementation of the project's FMS under the supervision of the CFO should facilitate the conversion to PMR-based disbursements within 18 months of Credit effectiveness. In that regard, a financial management review of the project will be undertaken by a World Bank Financial Management Specialist within 12 months of Credit effectiveness to assess progress. Auditing. Terms of reference for annual audits of project accounts, special accounts and staternent of expenses and for the financial annual audit of the Road Fund were agreed upon at negotiations. Auditing will be carried out by independent auditors acceptable to the Bank, and the reports of such audits will be submitted to the Bank no later than six months after the end of the Borrower's fiscal year. Separate audits will be carried out for ANE' s accounts, project accounts, special accounts and statement of expenses and the Road Fund. Periodic technical and yearly financial audits will be carried out for the Road Fund. Interim financial audits of the Road Fund (based on TORs highlighting payments by MPF and eligible expenditures for road maintenance) will take place every six months after the project becomes effective until Mid-Term Review (MTR). The audits will be commissioned and financed independently to ensure complete autonomy and objectivity. Agreements have been reached on the implementation procedures for this during the appraisal mission. Supervision. The Bank will devote some 30 staff weeks per year to supervise progress under the program, and a total of 300 staff weeks through fiscal 2010. During the first two to three years, supervision will focus on progress with implementing institutional and policy reforms as well as completing the agreed program of civil works. During the following years supervision will focus on quality of works; implementation of the AIDS prevention strategy; success in using local resources 13 (including private sector local contractors, and female workers); capacity building; institutional strengthening; safeguards and decentralization of rural roads maintenance responsibilities. During all phases, particular attention will be paid to the operational and financial performance of the Road Fund, as well as to the level of funds (road maintenance user fees and counterpart funds) transferred to the Road Fund. Reviews. Annual reviews by the Bank, together with the government and the other involved parties to assess progress in implementing the agreed program will be carried out during each phase of the APL. The reviews will consider and discuss the results of the program implementation plan (PIP) and recommendations for updating and amending the PIP for the remainder of program implementation. The reviews will specify actions that must be completed before the next phase is launched. Special attention will be paid to timeliness and level of transfers to the Road Fund, which will be tracked monthly. Annual reviews have proved very useful under ROCS 1 and ROCS2. A midterm review will be carried out two years after effectiveness of phase one to assess progress under the program, achievement of overall objectives, role of the different partners and to eventually reorient the program if needed to ensure achievement of objectives. The ANE Board (Road Board later on) through ANE will contract a consultant (under program finance) to review and assess the progress of program implementation and prepare the necessary documentation for the review. The ANE Board (then Road Board) through ANE will be responsible for preparation of the necessary documentation for the reviews and planning of review meetings. The review will evaluate progress in reaching program objectives, identify measures needed to reach objectives, and revisit monitoring indicators, defining new ones where necessary. As with the annual reviews, considerable attention will be paid to performance in allocating agreed resources to the Road Fund in a timely fashion. If allocations fall below the agreed levels, consideration will be given to eventually reducing the size of the program. Monitoring and evaluation. Overall program monitoring is based on indicators prepared during appraisal and on the program implementation plan to be finalized by the Borrower and agreed during negotiations. The ANE Board (phase one), and the Road Board (phases two and three) will monitor and coordinate activities. It will, through ANE, prepare progress reports every year, and submit them to the Bank within two months thereafter. No later than three months after completion of the program, the Borrower will prepare and provide to the Bank a report on the execution of the program, its costs, and current and future benefits to be derived from it. The implementing agencies will monitor progress and report monthly to MOPWH (phase one) and the Road Board (phases two and three). D: Project Rationale D1. Project alternatives considered and reasonsfor rejection The Bank considered undertaking a small two to three year operation focused on assisting Mozambique put into place appropriate road management institutions and sector reforms, before moving forward with a large roads investment program. This small operation is no longer necessary as government has reached agreement with the Bank on main policy and institutional reforms, milestones and target dates for implementing reforms. An APL is the appropriate instrument for a programmatic approach for this long-term program. The phased approach of the APL will provide support for critical institutional and policy reforms while the priority investment program is being carried out. It will also help with building capacity to address poverty, gender and HIV/AIDS issues. The long-term approach facilitates monitoring of program impacts. 14 D2. Major related projectsfinanced by the Bank and/or other development agencies Latest Supervin Sector Issue Project (PSR) RatIgs (Bank4inanced projeets only) Bank-financed Implementation Development Progress (IP) Objective (DO) Transportation First Roads and Coastal Shipping S S Program (closed December 31, 1999) (project 1790) Second Roads and Coastal Shipping S S Program (to be closed end 2002) (project 1804) Railways and Port Restructuring Project S S (Board approval October 14, 1999) (project 19085) Decentralization Local Government Project (to be S S completed 1999) (project 1791) Agriculture Agriculture Sector Public Expenditure S S Program (PROAGRI) (Board approval February 18, 1999) (project 1799) Urban Urban Development Project (under N/A N/A preparation) (project 1806) Other development agencies Private sector financed Maputo-Witbank Toll Road S N/A IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) D3. Lessons learned and reflected in the project design Implementation problems. Significant delays occurred during implementation of ROCS 1 and ROCS2 due to the imprecise definition and scheduling of works. The proposed program will build on capacity created under ROCS 1 and ROCS2 and much more precisely define the planning and design of works. The integrated roads sector strategy defines priorities for roads for the ten-year program, but will be updated continuously during implementation to allow priorities to be redefined as conditions change. In addition the detailed design and tender documents for most of the roads under IDA financing will be prepared and ready prior to effectiveness, as well as prior to the start of phase 2 and phase 3. Further, procurement rules and practices will be specified in detail. Delays can also be avoided by using existing detailed designs for roads that have not yet been built. Several such detailed designs were prepared under ROCS2. and need only be updated before work begins under the proposed program. Finally, implementation can proceed more smoothly by paying more attention to supervision. Close works supervision is key, combined technical, financial and procurement audits funded under the project can help mitigate the risk. Institutional andpolicyframework. Experience with programs worldwide shows that having in place good policy and institutional frameworks contributes to the effectiveness and sustainability of 15 investments. The program will assist with implementing new policies and effective and sustainable institutional arrangements, particularly those focusing on improved management, and on poverty reduction, gender equity, and AIDS prevention. It will also help build capacity through training and technical assistance and careful supervision and monitoring. The phased approach of the APL will ensure that policy and institutional reforms are implemented prior to undertaking major investments in works. Participatory approach. The national roads strategy has been prepared through extensive consultations with all stakeholders, especially road users. These consultations ensured that priorities, according to multi-criteria approach, are defined transparently and with wide support from the public. Government was committed to the approach and supported the priorities defined through the consultations. A process is being established through this exercise to revisit and update the strategy continuously to reflect changing priorities. Sustainablefinancing mechanisms. An area of focus for the program is to establish financial mechanisms that will ensure the sufficient, timely, stable and secure flow of funds to cover roads maintenance needs. The program will also assist with establishing appropriate financial management systems for the Road Fund, ANE and the provinces that guarantee accountability and transparency. Procurement. Experience under the earlier ROCS projects shows capacity for procurement to be good although there is still need for additional strengthening. Under ROCS2, the tendency has mainly been to handle procurement on an emergency basis, which allows for less stringent procurement procedures. There is now a need for a more systematic approach, particularly with the systematic preparation of design and tender documents for periodic maintenance and rehabilitation of roads. The Bank will assist the government strengthen capacity for procurement through technical assistance based on an assessment of procurement capacity of implementing agencies at the central, provincial governments, and local levels, carried out during project pre-appraisal. Using local contractors. Mozambique has a small, but growing local construction industry. Lessons from ROCS2 show that the industry needs to be strengthened before it can take on full responsibilities for major road rehabilitation and upgrading. The program will assist them build capacity, and will increasingly rely on them as capacity is built. It will also continue to use international contractors where appropriate. Nearly all of routine maintenance contracts (which are fully financed under the Road Fund) are carried out by local contractors. Procurement packaging for periodic maintenance and rehabilitation works, as well as for goods and consulting services, under IDA financing, will wherever possible be structured so as to support development of local contracting and consulting industry. D4. Indications of borrower commitment and ownership The government views roads management and maintenance as among its top priorities for stimulating growth and reducing poverty. In 1998 it issued a road policy emphasizing the need for (a) sustainability in the sector, (b) provision of sufficient resources for undertaking regular maintenance of the roads, (c) decentralization and deconcentration of the management of road networks, (d) strengthening of the institutions responsible for the management of the road networks, (e) development of the technical capacity in the private and public sectors, and (f) promotion of the participation of the private construction industry to take over the execution role. During an October 1999 seminar organized by ANE and the ministry of public works, the government highlighted the ongoing plans, milestones and target dates for implementing second and third generation institutional reforms for road sector management over the next two years. The government confirmed, during joint government/donor meetings in October 2000 and December 2000, that its aim is to 16 commence implementing the reforms by mid 2001. In addition, people participating in the consultations held to prepare the CAS ranked roads as among the country's top priorities. D5. Value added of Bank support in this project The Bank has been actively involved in the transport and road sectors in Mozambique since 1992. The First and Second Roads and Coastal Shipping Projects (ROCSI and ROCS2, approved in 1992 and 1994 respectively) were intended to be the first in a series of projects designed to rehabilitate and strengthen the country's road and shipping infrastructure. The Bank currently has a highly supportive and productive working relationship with the government on these matters. Bank involvement with developing a roads management and maintenance system will help guarantee a focus on reducing poverty by bringing its rich experience in this area to Mozambique. It will also help ensure institutional and financial sustainability of roads management by helping to define and implement efficient, effective and sustainable policy frameworks, institutional arrangements and financial mechanisms. The Bank has considerable global experience with road safety issues, which will be used to help Mozambique to develop and implement a road safety strategy. Finally, Bank involvement is also critical in coordinating donor assistance and ensuring a coherent approach to the sector. Government and Donors have indicated their desire for the Bank to continue in role of lead agency in the roads sector. The Bank will also help Mozambique incorporate newer concerns in its transport sector activities, particularly gender and AIDS issues. The Bank has gained considerable experience in including gender issues in roads upgrading and maintenance not only within the feeder roads programs but also in other roads subsectors. The Bank's focus on AIDS prevention is relatively new, but the Bank has launched a special program for Africa and, together with other donors including UNAIDS, is synthesizing the issues and proposing relevant solutions. Under Bank guidance and support, ANE has recently established a social and environmental unit to monitor and address the impact of roads improvement on poverty reduction, gender issues, HIV/AIDS prevention and impacts on environment. The project will support and strengthen this unit to fully play its role, and build on and strengthen initiatives launched under ROCS2 project, and involving NGOs, regarding these issues. E: Summary Project Analysis El. Economic (supported by Annex 4) [X] Cost-Benefit NPV= the sum of the NPVs totals US$187 million; EIRR=28 percent (with a range of 14 to 64 percent for individual roads) IDA supported roads have been selected from the priority list of roads identified under the Integrated Road Sector Strategy. In addition to having high EIRRs, the IDA financed roads address some of the first ranked priorities. IDA-supported road rehabilitation and periodic maintenance works for phase 1 of the program include: 1. Roads rehabilitation works. This subcomponent will rehabilitate four sections of the main north- south link of ENI (313 kilometers) at the cost of US$54.6 million. The road is degraded to the point that normal maintenance is not economically viable. Because of the high roughness of pavement, traffic using this most important link (annual average traffic of 350-15,500 vehicles per day) bear high vehicle operating costs (VOCs). Estimated economic rates of return for the four sections range from 14 to 64 percent. The sum of the NPVs for the four sections totals US$145 million. 17 2. Roads periodic maintenance works. This sub-component will provide periodic maintenance for four sections of the main north-south link ENI (525 kilometers), at a cost of US$37.9 million. The main economic benefit of the works is preservation of past road investments and reduction of VOCs (annual average traffic of 150-2,200 vehicles per day). Estimated economic rates of return for the four sections range from 14 to 21 percent. The sum of the NPVs for the four sections totals US$20 million. 3. Rural roads civil works. This subcomponent will rehabilitate 412 kilometers of rural roads in the provinces of Gaza, Nampula and Tete, at the cost of US$17 million. Five gravel or earth roads in very poor condition, some of them hardly trafficable during the rainy season, will be improved. The proposed works will reduce vehicle operating costs immediately. Providing year-round access to rural areas may also induce agricultural development benefits which have not been quantified in the global project economic evaluation. Based solely on VOCs savings, this component has EIRR estimated at 17 to 58 percent and the sum of the NPVs totals US$22 million. A sensitivity analysis has tested: (a) changes in investment costs (an increase of 20 percent) and (b) changes in base traffic (a reduction of 20 percent). The economic rates of return of the proposed IDA works are fairly robust. Only two roads see their rate of return fall to about 11%; in all the other cases tested, the calculated economic rates of return remain above the assumed opportunity cost of capital of 12 percent. A risk analysis, using the Monte Carlo simulation based on triangular probabilistic distribution of the costs (from -20% to +50%) and the base traffics (from -30% to +30%), has confirmed the low risk of the projects components. Rehabilitation, periodic maintenance and rural road components show above 95% certainty each of having a higher than 12% EIRR and this certainty comes close to 100% for project as a whole. E2. Financial (supported by Annex 5) The existing Road Fund, which is still a directorate of ANE, will become an autonomous and independent entity from ANE, which will clearly separate the financing function (Road Fund) from the execution function (ANE). The Road Fund will be dedicated to financing 100% of routine maintenance of roads and an increasing share of periodic maintenance. Simultaneously, the government will introduce a sustainable road maintenance financing system based on: (a) road maintenance user charges set at levels to generate sufficient resources to cover full routine maintenance, and gradually full periodic maintenance (by end of Phase 3); (b) prompt and timely payment to the Road Fund (during Phase 1) and direct payment from the petroleum companies to the Road Fund, without transiting through the ministry of finance by the beginning of Phase 2. A contribution from the investment budget (orcamento geral do estado), will be channeled through the Road Fund, for counterpart funds for rehabilitation of roads. The program will also assist with establishing separate accounting and financial management systems for the Road Fund, ANE and the provinces. Fiscal impact: In the short term, the fiscal impact of expenditures on roads rehabilitation and periodic roads maintenance will be negative. However, once construction is complete, these investments will lead to higher economic activity, which will generate tax revenues, resulting in positive fiscal impacts. Looking forward, the country is benefiting from HIPC debt relief, the economy is growing strongly and tax revenues are increasing. This suggests that government will have capacity to meet its growing obligations for road maintenance. 18 E3. Technical The program aims at significantly reducing road maintenance unit costs through adaptation of advanced technologies to Mozambican conditions. A variety of road construction materials will be tested for durability, ease of application and overall cost-effectiveness. The standards and technical specifications have been reviewed during pre-appraisal and appraisal and found acceptable. Detailed designs have been completed for two of the fourteen roads to be financed by IDA. Detailed engineering designs for seven roads will be prepared in 2001, and designs for the remaining roads will be completed under retroactive financing. Mozambique is still recovering from the civil war, and has limited resources for road works. Therefore, the proposed civil works will establish appropriate road standards rather than upgrade the roads to the regional Southern Africa Transport and Communications Commission (SATCC) standards. The preliminary costs are estimated on the basis of costs of similar projects recently completed or still ongoing in the country. E4. Institutional a. Executing agencies. The overall executing agency will be ANE. Implementation of the program will be split between the central level and provincial and local authorities. At the central level, ANE's directorate of national roads will manage operations for primary and secondary roads, and its directorate of regional roads will advise and assist the local authorities and municipalities to implement the rural roads projects. ANE (formerly DNEP) has successfully implemented ROCS I and ROCS2 projects and has developed considerable expertise with local and international procurement procedures. Nevertheless, assessment of procurement under the previous projects revealed the following weaknesses: (a) untimely and incomplete procurement planning, (b) inadequate updating of the existing procurement documentation, (c) lack of procurement expertise to handle complex situations such as settling of contractor's claims, (d) insufficient control over the payment of contract price adjustments, and (e) delays in completion of contacts compared with the agreed time schedules. To mitigate these weaknesses the program will provide (at ANE and provincial levels): (a) capacity building, (b) technical assistance by specialists, and (c) training of ANE engineers and technical staff. An action plan to include these activities was agreed with ANE during appraisal. Procurement performance will be monitored (luring project implementation. The financial management capacity of ANE, provincial offices, and the Road Fund will also be strengthened through training and technical assistance. The project builds on existing institutional arrangements and will contribute to a sustained effort of institutional strengthening. The overa1l responsibility rests with ANE. New record keeping and accounting systems will be installed changing the existing accounting basis from cash to accrual. b. Project management. During phase one, the ANE Board will be responsible for policy guidance and overall program oversight, and will ensure coordination and cooperation between central, regional and local authorities, government agencies involved with program implementation, and the private sector. During phases two and three, the Road Board established under phase one will take over the role of program oversight and coordination. Currently, the ANE Board is chaired by the president of ANE and comprises officials of government agencies (including the ministry of finance), and representatives of the private sector and academia. E5. Environmental Environmental Category A E5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis. 19 An initial full environmental impact assessment (EIA) was completed for planned road works. The investigation concluded that the planned road works will not have much if any impact on the environment. None of the IDA-financed subprojects are located in sensitive ecological areas. The subprojects do not require resettlement and no minorities are affected. In-migration (and associated effects) was identified as a potential effect of providing improved transportation access. Specific measures to mitigate its impact are included in the project. ANE developed and is implementing measures to prevent the spread of HIV/AIDS among workers and people living near project roads. The overall conclusion is that the subprojects proposed for IDA funding can proceed with no significant adverse environmental effects. The executive summary of the project's environmental impact assessment appears in annex 11. E5.2 What are the main features of the EMP and are they adequate? The EMP includes environmental management guidelines for practical use in the field. It is proposed that ANE incorporates the environmental management guidelines in contract specifications for periodic maintenance and rehabilitation projects. Their implementation would be part of the road works contracts. Immediate enforcement would be the responsibility of the company supervising the contract. ANE's role would be to audit the environmental management of projects and update the environmental management guidelines when required. The EMP also includes a plan for strengthening capacity for environmental management of the roads sector. It is proposed that ANE develop its fledgling social and environmental unit (the Gender, Poverty Alleviation, and Environment Unit) into a section with broader responsibility and expertise in environmental management. This would require employment of a senior specialist in environmental impact assessment as part of the unit. This person would also have a role in capacity development within the unit. It is also proposed to provide training on environmental management to ANE staff in the training, supervision, studies and projects departments and to provincial delegates. Support for master's degree studies in environmental impact assessment for members of the ANE environment unit is also proposed. A budget of US$600,000 is proposed for capacity building measures. E5.3 For Category A and B projects, timeline and status of EA: The draft environmental impact assessment for the project was completed in December 2000. Date of receipt of final draft: February 2001. E5.4 How have stakeholders been consulted at the stage of (a) environmental screening, and (b) draft EA report on the environmental impacts and proposed EMP? Describe mechanisms of consultation that were used and the groups that were consulted. Consultation was undertaken with 21 government and nongovernmental organizations. Discussions were also held with local villagers and chiefs during field inspections. Outputs from the consultations included: * Improved understanding of the roles of both government and non governmental organizations in developing and maintaining road infrastructure * Knowledge of concerns about the adverse effects of road development * Knowledge of the perceived or measured benefits of road development * Access to background information relating to various aspects of the biological, physical and social environments * Improved understanding of the importance and relevance of road infrastructure to local villagers. 20 E5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the environment? Do the indicators reflect the objectives and results of the EMP? ANE will be responsible for determining the level of environmental assessment required for all of ANE's work and ensuring the work is completed to an appropriate standard. As part of its routine supervision process and midterm review, the Bank will review performance of ANE in applying the environmental assessment procedures, evaluate performance of executing agencies in addressing environmental issues in design and implementation of subprojects, and agree on actions to be taken to improve performance. This will involve visits by specialists to selected sites of subprojects for first-hand assessment of implementing agencies' performance. They will assess the environmental and social impacts of subprojects, both individually and cumulatively, and the adequacy of safeguard procedures agreed for the project. E6. Social E6.1 Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes. Poverty, gender and HIV/AIDS are the three important social issues which the proposed program will address. A social impact assessment of roads projects now under preparation will provide a baseline and preliminary insights into how different types of roads affect poverty. Large scale poverty assessment data from 1996-97 are available and provide some road-specific information. ANE will initiate interagency collaboration to analyze road-specific elements of poverty to guide the programs' choices of road types, siting and construction and maintenance techniques. Mozambique has one of the highest HIV/AIDS incidence rates of in the world, with 15 percent of adults ages 15-45 HIV positive. Improved transport provides opportunities both to spread the disease and to introduce activities designed to reduce its incidence. The social impact assessment process under phase one of the program will help in formulating the transport specific actions needed to stop the spread of AIDS. E6.2 Participatory approach: How are key stakeholders participating in the project? The integrated roads sector strategy was developed through extensive consultations with all key stakeholders, including representatives of central and local govemment agencies, the private sector, nongovernmental organizations, women's groups, academic institutions, donors, and road users. Four stakeholder workshops were held, two in Maputo and one each in Beira and Nampula. The workshops discussed stakeholder needs and priorities and opinions of management of the sector. The stakeholders named their top priorities as establishing and maintaining good north-south connectivity along the main road, and focusing on roads promoting market access for agricultural producers. They also stated a strong desire for government to adequately maintain roads. Experience with ROCS2 shows that it is important to have broad consensus within society about choice of roads. Therefore, stakeholder consultations will be held regularly throughout the years of program implementation to update the strategy and program to reflect changes in national priorities. Rural people, including women, will be involved in decisions on the use and maintenance of unclassified roads. They will also have a role in constructing, upgrading, managing and maintaining rural roads. Private sector entities will be consulted on ways to best involve them in road activities. 21 E6.3 How does the project involve consultations or collaboration with NGOs or other civil society organizations? NGOs, academnic institutions, women's groups and the private sector were involved with consultations to develop the integrated roads strategy. NGOs will be involved with implementing the communication strategy to inform the public of program activities. E6.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes? The special social unit in ANE addressing gender, poverty alleviation and HIV/AIDS prevention will be important in helping to assure that the project implements agreed measures addressing these issues, and in developing new approaches for later phases of the program. This unit will build on the existing gender unit that has helped increase the participation of women in constructing and maintaining feeder roads. During preparation of phases two and three of the program, lessons from this experience will be synthesized and extensively discussed with stakeholders, including the private sector, to ensure poverty, gender, and HIV/AIDS are taken fully into account in program design and implementation. E6.5 How will the project monitor performance in terms of social development outcomes? Monitoring indicators include measures of female participation in the roads work force and indictors of awareness of how HIV/AIDS spreads and what can be done to prevent transniission. E7. Safeguard policies E7. 1 Do any of the following safeguard policies apply to the project? X Environmental Assessment (OD 4.01) Yes Natural Habitats (OP/BP/GP 4.04) No Forestry (OP 4.36) No Pest Management (OP 4.09) No Cultural Property (OPN 11.03) No Indigenous Peoples (OD 4.20) No Involuntary Resettlement (OP 4.30) No Safety of Dams (OP 4.37) No Projects on International Waterways (OP 7.50) No Projects in Disputed Areas (OP 7.60) No E7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies. Project supervision and the midterm review will include compliance with the safeguard policies as a main area of focus. Failure to comply could result in suspension of the project. 22 F: Sustainability and Risks Fl. Sustainability The benefits of the program will be sustained through effective, transparent and accountable roads management, and stable, timely, sufficient and secure funding for roads maintenance. The program includes activities to strengthen management capacity at the central and local levels and to introduce mechanisms to mobilize internally the required resources and properly manage these resources. T'o assure sustainability of the program's impact on poverty, AIDS and gender, the program is establishing a permanent unit within ANE to address and monitor these issues. This unit will coordinate with the social units of government agencies and with nongovernmental dealing with issues, including UNAIDS. F2. Critical risks Risk Risk Rating Risk Minimization Measure From Outputs to Objective 1. Policy and institutional reforms H Annual and midtermn reviews will examine progress not implemented as agreed. on implementing agreed reforms. Restructuring and downsizing the project following the midterm review may be considered if progress is inadequate. Later phases of the APL will not be activated until policy and institutional reforms are completed. 2. Financial resources to maintain H Annual and midterm reviews will examine roads not provided. performance in financing the Road Fund. Restructuring and downsizing the project following the midterm review may be considered if adequate funds are not provided in a timely manner. Later phases of the APL will not be activated until mechanisms for sustainable financing are put into place and the Road Fund is performing adequately. 3. Institutional capacity inadequate S The program includes technical assistance and to benefit from training and technical training to increase capacity. ANE has restructured assistance. and now offers sufficiently high salaries to attract people with good managerial and technical skills. 4. Transmission of HIV/AIDS H ANE will liaise closely with the ministry of transport increases due to improved mobility. to ensure that the routes it improves under the project are covered by the ministry in its campaign and efforts to prevent spread of HIV/AIDS. 23 Risk Risk R0atig Risk Minimization Measure From Components to Outputs 1. Limited institutional and S Institutional capacity will be strengthened through operational resource capacity to technical assistance and training at central and implement the program. provincial levels. 2. Lack of familiarity with Bank N Training on Bank rules and procedures will be rules on procurement, disbursement, provided. Bank staff will be available to provide accounting and auditing. guidance throughout program implementation. Overall Risk Rating S Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N (Negligible or Low Risk) F3. Possible controversial aspects None. G: Main Credit Conditions Prior to Negotiations: The following conditions have been met in form and substance acceptable to IDA: Draft Project Implementation Plan (PIP) and Procurement Plan, in form and substance acceptable to IDA * Draft Letter of Development Program prepared for the road sector * Financial Management and accounting interim procedures manual finalized and satisfactory to IDA Prior to Board Presentation: The following conditions have been met in form and substance acceptable to IDA: Transrmission to IDA of the Letter of Development Program prepared for the road sector, acceptable to IDA. Prior to Effectiveness: * Project Implementation Plan (PIP), in form and substance acceptable to IDA, adopted by the Borrower and ANE. * Auditors for the project accounts and the Road Fund appointed in accordance with Bank procurement guidelines. * Chief Financial Officer (CFO) appointed by ANE satisfactory to IDA. * Counterpart Funds Account and Special Account opened. Initial deposit to Counterpart Funds Account made. * World Bank advised of authorized bank signatories/specimen signatures. * Subsidiary Agreement has been executed on behalf of the Borrower and ANE. During project Implementation * Financial Management Commnittee appointed. * Chief Financial Internal Auditor appointed by ANE satisfactory to IDA. 24 * A rolling three-year investment and maintenance program for the road sector will be prepared by ANE and submitted annually by September 30 to IDA, for its review and comments. * The government will not undertake or order from any entity or contractor any public investment for the road sector over US$5,000,000 equivalent, which is not part of thei approved three-year investment and maintenance program. * The government will: (a) maintain the Road Fund under terms and conditions which will be at all times satisfactory to IDA, (b) take measures required on its part to ensure that the level of the road maintenance user fees to be channeled into the road fund are promptly acljusted according to the agreed provision under the Letter of Program Development, and (c) ensure that the proceeds of the road maintenance fund shall be used solely for the purposes of defraying the cost of expenditures incurred for road maintenance and rehabilitation operations in Mozambique. H: Readiness for Implementation 1. [xl (a) The engineering design documents for the first year's activities will be completed and ready for the start of project implementation. All feasibility, institutional and a environmental and social assessments have been completed. The project design reflects the findings of these studies. [ 3 (b) Not applicable. 2. [ ] The procurement documents for the first year's activities are complete and ready for the start of project implementation. 3. [ ] The Project Implementation Plan has been appraised and found to be realistic and of satisfactory quality. 4. [XI The followinig items are lacking and are discussed under loan conditions (Section G): I: Compliance with Bank Policies It. [X] This project complies with all applicable Bank policies. 12. [ ] The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies. Abdelmoula Ghzala J n River4on ,-/Philippe Le Houerou Team Leader Acting Sector Manager Acting Country Director 25 Annex 1: Project Design Summary MOZAMBIQUE: Roads and Bridges Management and Maintenance Project Hierarchy of Objectives Ky Perfor *ance Indicators Monitoring and Critical Assumptions Evaluation Sector-related CAS Goal: Sector Indicators: Sector/country reports: (from Goal to Bank Mission) 1. Create economic Trends in coverage and National statistics. 1. Government is opportunities by improving condition of road network. committed to rural access to markets and implementing policy services, improving traders' and institutional reforms access to neighboring to ensure efficient and countries and maintaining the effective sector principal national and coastal management. links to promote tourism and national unity. 2. Increase human 1. Awareness of HIV/AIDS 1. Ministry of health and 1. Government is capabilities by supporting prevalence. UNAIDS statistics. committed to activities to prevent the 2 T i r implementing spread of HIV/AIDS, 2. Trends im road accidents per 2. Government stat.stics HIV/AIDS reduction reducing injuries and deaths strategy and road safety due to traffic accidents, and 3. Female participation in road 3. ANE statistics on strategy and has promoting gender equity by works employment. female employment. capacity to do so. ANE encouraging employment of is committed to raising women in the roads sector. female employment and there are sufficient qualified candidates. 3. Improve governance and 1. Changes in proportion of ANE statistics. public administration by roads works implemented by fostering private sector private sector. participation in road 2. Progress in decentralizing ANE statistics rehabilitation and maintenance, and by road plannig and management strengthening decentralized road planning and management processes. 26 Annex 1: Project Design Summary (cont.) Hierarchy of Key Performance Indicators Monitoring and Evaluation Critical Assumptions O bjiectives__ _ _ _ _ _ _ ___ _ _ _ _ _ Project Development Outcome / Impact Indicators: Project reports: (from Objective to Objective: Goal) 1. Improve coverage and 1. Number of rural Supervision reports every six 1. ANE has the condition of road communities newly connected months outlining progress on operational management network. to the road network. key indicators, and actions to capacity to successfully 2. Proportion of programmed be taken to achieve goals. execute the program. works completed. Reports of ANE and other 3. Percent increase in traffic road implementing agencies. counts traveled. 4. Percentage decline in freight rates. 5. Share of roads in fair or good condition to increase. 2. Improve road 1. Percentage decline in number Government statistics. 1. Government is transport safety. of acciderits per vehicle committed to kilometer. strengthening and 2. Percent decline in fatalities enforcing road safety and injuries from accidents per laws. vehicle kilometer. 2. Police are actively involved in enforcing safety laws. 3. Strengthen capacity to 1. Agreed reforms Final implementation 1. Government is manage and administer implemented. completion report. committecd to reforms the road sector. 2 Responsibilities transferred necessary for effective 2. Responslbllltles transroadsmanagment to regional offices and local roads management. authorities. 2. Institutions have capacity to benefit from training and technical assistance. 3. Regional and local authorities have the capacity to implement the program. 27 Annex 1: Project Design Summary (cont.) ffierarchy of Key Perfonrance hIndicators Monitoring ad EvC ct Objectives Project Development Outcome 1 Impact Indicators: Project reports: (from Objective to Objective: Goal) 4. Establish financing 1. Road Fund finances routine Comprehensive program 1. Ministry of Planning mechanisms for maintenance on an average of review with agreement on and Finance provides sufficient, timely and 13,600 kilometers of roads actions prior to release of agreed resources to stable flow of funds for annually, during Phase 1. financing for phase two of the Road Fund: roads maintenance. 2. Road Fund finances periodic program. 2. equivalent US$40 maintenance on an average of million in 2002, 1,900 kilometers of roads equivalent US$45 annually, during Phase 1. million in 2003, 3. Monthly transfers to the equivalent US$50 Road Fund. million in 2004, equivalent US$55 million in 2005. 3. equivalent US$100 million in 2010.. 5. Ensure that roads 1. Proportion of men and Reports of UNAIDS and other 1. Government and strategy and women aware of risk of AIDS. donors on effectiveness of ANE are committed to implementation address 2. Number of women employed AIDS prevention activities. increasing female HIV/AIDS and gender at all levels and in all capacities ANE reports participation in the roads concerns, tallvl n nalcpcte N eot sector. concern. min the road sector. 28 Annex 1: Project Design Summary (cont.) Hierarchy of Objectives Key Performance Indicators Monitoring and Evaluation Critical Assumptions Output from each Output Indicators: Project reports: (from Outputs to component: Objective) A. Improved coverage 1. 313 kilometers of roads Supervision reports every six 1. ANE and other road and condition of road rehabilitated (under IDA months outlining progress on implementing agencies network. financing). key indicators, and actions to have the capacity to 2. 525 kilometers of roads be taken to achieve goals. implement the program. treated with periodic maintenance Comprehensive program 2. Rural communities (under IDA financing). review with agreement on maintain rural roads. 3. 412 kilometers of rural roads actions prior to release of upgraded or maint d (financing for later phases of upgraded or maintained (under the APL. IDA financing). B. Sector management 1. Road Board independent of Final implementation 1. Government is more effective, efficient, ANE. completion report. committed to reforms. accountable and transparent. 2. Financing and allocation 2. The Road Fund and functions (under the Road Fund) roads implementing separated from the management agencies have the of contracts and supervision of financial and human construction and maintenance. resources to fully benefit from traini,ng. 3. Appropriate financial management framework for ANE, the Road Fund and program established. 4. System of technical and financial auditing and performance monitoring established. 5. Time taken for tendering and contracting road works 6. Percentage of works completed on time and within budget. C. Strategies formulated 1. Human resources development 1. Government has the and roads investments for strategy document completed. capacity to oversee and phases two and three coordinate the studies fully prepared. 2. Environmental impact and preparatory assessment completed. actvites activities. 3. Social assessment completed. 4. Poverty assessment completed. 5. Road safety strategy completed. 29 Annex 1: Project Design Summary (cont.) flier0rchy of Objectives Key Performance Monitoring and C ritclAmtns Indicators Evaluation Project Components / Sub- Inputs: (budget for each Project reports: (from Components to components: component under IDA Outputs) financing) A. Civil works US$138.6 Supervision reports every 1. The ANE has the capacity six months. to implement the program. 1. Routine maintenance Comprehensive program review. 2. Roads periodic 38.1 Disbursement reports. maintenance 3. Roads rehabilitation 55.8 4. Rural Roads 17.3 5. Emergency Works 6.3 6. Road safety 7.1 7. Engineering Services for 14.1 the roads sector B. Policy Reforms and US$16.8 Institutional strengthening 1. Technical studies and 4.8 assistance to the road sector 2. Expertise and institutional 7.4 strengthening for ANE 3. Training 2.7 4. Support to program and 1.9 project management 5. ANE, DEPs & Road Fund operating Expenses C. Strategy and preparatory US$6.7 activities for phase 2 1. Technical assistance for 0.6 strategy formulation 2. General and technical 6.1 studies and expertise to the road sector 30 Annex 1, Table A: Key performance indicators, Activities and Target dates Indicator Unit Initial 2002 2003 2004 2005 Road Condition Good Kilometers 6,000 7,250 8,500 10,500 11,500 ............ .................. .................. ................ . ....................... -........ . . . ... ............. ... ... .... ......... .'...... Fair Kilometers 7,500 6,750 5,500 4,000 3,500 Road Fund . Eq US To be assessed at Avg. Road maintenance user fee . 9.5U Cents mid-term review . ... .... ... ... ... ................... ...................... . ......................... ...... . ..... ................... ...... .; . .. .... . .... Revenues from Road Eq. US$ 28.72 37 41 46 51 Maintenance user fee (rounded) millions Counterpart Revenues (from Eq. US$ Investment Budget) (rounded) millions ~~~~~~~~~~~~~~~~~~~~...., . .. . .. . . ... . . . . .. . . . . . . . . . . ......... .. ......... .-. ...... ..... .. .. . . . .. . . . .-"-- ' Total Government allocation to Eq. US$ 40 45 50 55 Road Fund (rounded) millions Kilometers of road works executed Routine maintenance Kms 10,0003 12,000 12,500 13,500 14,000 Periodic maintenance Kms 1,004 1,350 1,800 1,900 1,900 Expenditures on R a W r ks ................... .... ..... .... _ . .............. . - ... . ' ' - ' ' ' .''''''''''''''''-'''''-''- .. ..... Routine maintenance Eq.US$M 9 11 12 12 13 Periodic maintenance Eq. US$ M 35 43 - 55 57 55 2Amounts that should be transferred by MPF according to road user maintenance charges and estimated consumption levels for 2001. 3 Estimate of routine maintenance planned for 2001 4 Estimate of periodic maintenance planned for 2001 31 * Separation of the Road Fund * Decree creating the Road Fund as a legal entity December 2002 from ANE completed. passed. * National Roads Board * Roads Boards Operational * ANE Board June 2003 * Road Fund Boards Percent of jobs Consult- Civil completed: ancies works On time 85% 80% By mid-term Within budget 80% 75% review To specifications 80% 80% * Improvements in procurement Without payment delays 100% 100% and delivery of works and services Percent of jobs Consult- Civil completed: ancies works On time 95% 90% December 2004 Within budget 90% 85% To specifications 90% 90% Without payment delays 100% 100% * Design and implement * System designed 31/03/02 contractor and consultant performance rating system _ 100% of procurements monitored by system 31/12/04 l Contract payments * Payments as per individual contracts mid-term review 32 Annex 2: Project Description MOZAMBIQUE: Roads and Bridges Management and Maintenance Project. Component A: Civil works US$138.6 million Component A will comprise seven subcomponents: (1) roads routine maintenance, (2) roads periodic maintenance, (3) roads rehabilitation, (4) rural roads civil works, (5) emergency works, (6) road safety, and (7) engineering services for road works. No realignment of roads is envisaged and therefore no land acquisition is anticipated. The project will improve stormwater drainage to reduce severe erosion. All ANE future contracts in rural areas will be structured to encourage employment of local residents in the rehabilitation works. Tables A2. 1 shows works to be financed by all participants in the program. Table A2.3 shows roads and activities to be financed by IDA. Table A2.4 shows activities for which financing is still being sought. Detailed descriptions of activities are given only for IDA-financed subcomponents. 1. Roads routine maintenance For Unpaved Roads, activities will involve spot re-gravelling, drainage and verge maintenance, dragging, shallow blading and dust control For Paved Roads, activities will involve localized repairs (typically less than 150m in continuous length) of pavement and shoulder defects, and regular maintenance of road drainage, side slopes, verges and furniture. This subcomponent will be financed entirely under the Road Fund. 2. Roads periodic maintenance works The work will involve full-width resurfacing or treatment of the existing pavement or roadway(inclusive of minor shape correction, surface patching or restoration of skid resistance) to maintain surface characteristics and structural integrity for continued serviceability; localized repairs and reconstruction (typically less than 10% of total project length in sections of less than 250m in continuous length); limited geometric improvements related enhancement of traffic capacity speed and safety but not structural strengthening; maintenance and/or provision of vehicle load control facilities. Specific actions include slurry seals, fog sprays, enrichment treatments, surface treatments (double or single); friction courses; thin asphalt surfacing typically 30mm or less in thickness and localised base reconstruction, vegetation control, repainting road markings, repairing and replacing road signs; weigh bridge facilities. Road 3 ENI Muxungue-Inchope This 145 kilometer section of ENI reaches at Inchope, the important Beira corridor, which connects the city and port of Beira to Zimbabwe. It crosses an area with good agricultural potential but which is presently used for hard wood harvesting and subsistence farming. This road underwent pothole patching and bitumninous surface treatment during the mid to late 1990's. That treatment did not however address the problems of structural capacity, road surface quality, carriage way width or shoulder structure. The project will address these problems. 33 Road 43 EN1 Marracuene-Manhi,a This second section of ENI to be maintained under the project is 48 kilometers long. The road runs across an area of extensive subsistence agriculture which is rapidly developing following the end of hostilities and demining of the area. It also serves a large and newly rehabilitated sugar cane producing and processing zone. This section of road was rehabilitated during the early 1990s with a mixture of asphalt and double bituminous surface treatment; lanes were partially widened. The increase in traffic and degradation of the unsurfaced shoulders have led to the need for reengineering of this section to upgrade it to the standard necessary to carry the present and future traffic volumes safely. Road 1 EN1 Incoluane-Zandamela This 159 kilometer section of ENI starts approximately 140 kilometers north of Maputo. It crosses the flood plains of both the Incomati and Limpopo rivers and was recently extensively damaged during the February 2000 floods. In the Incomati river flood plain, there are extensive sugar cane plantations and processing facilities that have also recently been rehabilitated. In the Limpopo river flood plain, agriculture is in general limited to subsistence farming, although cattle farming is being introduced and herds are growing steadily. The capital city of Gaza province, Xai Xai, which is approximately 200 kilometers north of Maputo is served by this road. This road was given a bituminous surface treatment during the mid 1990's but no structural upgrading, rehabilitation or widening was undertaken. Annual average daily traffic is about 1,000 vehicles. The extensive 2000 flood damage to roads in the two major river flood plains has been addressed under separate emergency works contracts. Road 2 EN 1 Zandamela-Maxixe This 173 kilometer section of the ENI passes through both Gaza and Inhambane provinces and provides access to Inhambane, the provincial capital and only port along the 1,200 kilometer coastline between Maputo and Beira. During the early 1990s this section underwent an emergency pothole patching and resealing treatment. However, the road remains in very rough condition and has only one lane of 6 meter width, making it dangerous for the average annual traffic of 1,000 vehicles per day using the road. Storm water erosion is not a major problem for most of this road. However, there are some specific areas, including the town of Maxixe, where the road has suffered extensive damage and drainage will be needed. The area served by this road section is a rich agricultural zone, producing relatively large volumes of coconuts, oranges, lemons and cashew nuts. It also produces chilies, paw paws and cassava in smaller volumes. 3. Roads Rehabilitation works The work will involve full-width, full-length surfacing with strengthening and shape correction of existing pavement or roadway (inclusive of repair of minor drainage structures) to provide improved structural strength and integrity required for continued serviceability; geometric improvements related to width, curvature of gradient of roadway, pavement, shoulders or structures, to enhance traffic capacity, speed or safety; maintenance and/or provision of vehicle load control facilities. Specific actions will include full base reconstruction, asphalt strengthening overlays, selective deep patching and overlays, granular base overlay and surfacing, surface treatment with major shape correction, recycling of one or more pavement layers, vegetation control, repainting road markings, repairing and replacing road signs; weigh bridge facilities. This subcomponent will be financed jointly by the funding agencies and GOM (counterpart funds made available to the Road Fund from the Investment Budget). The list below presents the details of the roads under IDA financing (with 5% counterpart funds from GOM channeled through the Road Fund). 34 Road 42 EN 1 Maputo-Marracuene The project will maintain the first 29.7 kilometer section of ENI. This section carries the heaviest traffic in the entire national road network. Traffic, however, tails off quite significantly once outside of the Maputo metropolitan area (with annual average daily traffic dropping from 16,000 to about 5,000 vehicles per day). The road received a mixture of asphalt and double bituminous surface treatment during the late 1980s under a periodic maintenance contract. The dramatic increase in traffic following the signing of the peace agreement has resulted in the need for further periodic maintenance and road widening with the addition of surfaced shoulders. Special attention will be given to storm water drainage, particularly in the urban areas and in the areas identified as suitable for future industrial and domestic development. Road 15 ENI Maxixe-Cr. ER520/EN1 The project will rehabilitate a 123 kilometer section of ENI. The road underwent emergency pothole patching and a single bituminous surface treatment in the early 1990's. The road pavement is in very poor condition with high roughness. It has failed structurally in a number of places. The failures appear to be due to the ingress of water either through the surface of the road or via the base course in poorly drained areas. Coconut production is an important econornic activity in the area along the first 70 kilometer of the road, up to Massinga. Population density is high. Thereafter the agriculture activities are more limited, centered around subsistence farming. The planned rehabilitation is intended to improve road quality, increase lane width, provide shoulders, and supply adequate storm water drainage to avoid future erosion. Road 29.1 ENI Cr. ER520tENI-Vilanculos This 109 kilometer section of road in the province of Inhambane is a continuation of EN1 up to the village of Vilanculos. The road underwent emergency pothole patching and bituminous surface treatment in the mid 1990's. It crosses fairly flat terrain, which experiences regular floods. The wetting and drying of the road structure combined with the narrow road width and relatively high percentage of heavy vehicles traveling on it has resulted in structural failures of the road. The project will rehabilitate the road by increasing the number of drainage structures, strengthening the pavement, widening the carriage way and providing shoulders. Vilanculos has a very small fishing port which serves the local population and provides sea access to the nearby islands. Because of the natural beauty of the islands, this area already attracts a number of tourists. There is potential for further development of tourism. Road 44 ENI Manhi a-jncoluane This is section of road is 52 kilometers long. It runs up to the edge of the Incomati river flood plain. It received an bituminous surface treatment during the mid-1990s, but no structural upgrading, rehabilitation or widening were undertaken. Annual average daily traffic is 2,500 vehicles per day. Under the project, the road will receive periodic maintenance treatment, the carriage way will be widened and the shoulders surfaced. This section of road traverses some of the most rolling terrain present during the first 400 kilometers of ENI and accordingly suffers from storm water related erosion problems. This area has attracted a number of flood refugees during 2000, who left the low lying areas for safety. Population growth along this section has led to large increases in subsistence farming. 4. Rural roads civil works (rehabilitation) This subcomponent will involve major re-gravelling and ripping, re-compaction and drainage; rehabilitation also could include localized geometric improvement. In certain cases the subcomponent will upgrade the earth road to a gravel standard. 35 Specific actions include improve structural strength, shape, drainage, ride quality and performance, minor improvement to geometric and structural standards. Road 10 ER 405 Fr.Maputo-Chokwe This gravel road section is 31 kilometers long and 6 meters wide. It carries an annual average of about 40 vehicles per day, and is badly degraded. This tertiary road is located in a highly populated area of Gaza Province where the average population density is very high at 53 people per square kilometer. This road links two major agricultural areas in Mozambique-the sugar producing region along the Incomati river in the south and the grain producing areas of Limpopo in the north. From a network point of view, this road has a strategic value, since it is part of the bypass of Maputo and Xai-Xai, linking the South Africa border crossing at Ressano Garcia with EN1 northeast of Xai-Xai. As the area around Maputo and Matola becomes increasingly congested, the bypass will permit northbound traffic from the South African border to avoid the congestion and travel directly to Inhambane Province and to points north. The road runs over fair subgrade materials made up of silty sands. Gravel wearing course sources can only be found in the southeastern end of the road. The nearest stone sources are in Boane , about 250 kilometer south, and in Massingir, 135 kilometer north. Road 37 EN221 Bene-Ffngoe This secondary gravel road section is 114 kilometers long and 6 meters wide. It carries an annual average of about 180 vehicles per day, and is becoming seriously damaged. It is in Tete Province in an area where the average population density is low at 5 people per square kilometer. The road passes through a reasonably good agricultural area, currently producing small maize surpluses. This region has high potential for ecotourism, but is currently isolated and will benefit economically from access to an improved road. Ffngoe is the capital of the Maravia District, so the road will improve access to government services. The nearest stone source is 75 kilometer to the south along the main road to Tete city. However, there are other rock formations in the area which could provide suitable aggregate. Road 41 ER 572 MecoDta-Corrane This gravel road section is 68 kilometers long and 6-7 meters wide. It carries on average 175 vehicles a day, and is badly degraded. This secondary road is located in Nampula Province where the population density averages 40 people per square kilometer, compared with the national average of 22 people per square kilometer. The road's zone of influence is agriculturally rich, producing cashew nuts, cotton and semi precious timber. Improving this road will give Corrane and Nametil better access to the national road EN8, the railway line at Namialo and the deep sea port of Nacala. The road runs through sandy to silty sand subgrades. Gravel meeting the needed specifications for wear is not easily available in the immediate vicinity. The closest stone source for construction is Namialo 50 kilometer to the north. Road 8 EN 239 Nametil-Cr EN 236/260 This secondary gravel road section is 76 kilometers long and 6 meters wide. It carries an annual average of about 230 vehicles per day, and is presently badly degraded. It is located in a highly populated area of Nampula Province where the average population density is 66 people per square kilometer. The road is a link connecting the provincial capital Nampula, and Nametil to the coastal town of Angoche-once an important fishing port, planned for rehabilitation. It crosses a very important agricultural area producing cashew nuts, cotton, tobacco and coffee. The road runs over good to fair subgrade materials made up of silty sands. No gravels are available for wearing course and the closest stone source is in Namialo, a distance of about 150 kilometers. 36 Road 14 ER 555 Estima-Magoe This tertiary gravel road section is 123 kilometers long and 6 meters wide. It carries an annual average of about 60 vehicles per day, and is badly degraded. It is in Tete Province in an area with low population density of 8 people per square kilometer. The road connects the main fishing spots in the Cahora Bassa lake (such as Chicoa) to Tete, the capital of the province. Semi-industrial or artisanal fishing is the main source of income in this region. The road also helps connect Estima and further north Songo (where the hydroelectrical dam is) to Zimbabwe via Mocumbura. Improving the road, which connects to an isolated district capital, Magoe, will help rural people benefit from social services. This road runs over very good silty to sandy gravel subgrades with good wearing course material available. No stone sources are available at present but there is enough rock in the area from which suitable material can be obtained. 5. Emergency works The project will finance emergency repair works to roads and bridges following heavy rains and flooding. 6. Road safety Road safety program The program will include, but not be limited to, the following: * Creation of pedestrian crossings - Placement of rumble strips at pedestrian crossings * Erection of traffic signs at pedestrian crossings e Erection of speed limit signs - Installation of other warning signs * Marking of roads. The road safety program will be conducted in close coordination with all the stakeholders, including the ministry of transport, police, municipal authorities, health workers, educators and so on. Construction of vehicles inspection centers The new road code requires each vehicle to go through regular inspections. The Ministry of Transportation and Communications is preparing the regulation that will dictate the frequency. Vehicle inspection will be carried out by private companies that will be selected through national bidding. In order to provide a quality check of private inspections and to have the capability of carrying out their own inspections when the need arises, the ministry will equip two small centers with the minimum required equipment. 7. Engineering services for the road sector These will include the preparation of detailed design and tender documents and supervision of works. Component B: Institutional strengthening and policy reforms:US$16.8 million This component will comprise: * Establishment of an institutional framework for the sector, which ensures effective, transparent and accountable roads management and administration. This will include clear separation of the financing and allocation functions (under the Road Fund) from the management of contracts and 37 supervision of construction and maintenance, and creation of a Road Board responsible for overseeing and monitoring performance in the overall sector. ANE and the Road Fund will be supported and strengthened in their respective roles. * Establishment of the most appropriate financial management framework for ANE, the Road Fund and program and projects management, to ensure the sufficient, timely, stable and secure flow of funds to cover roads maintenance needs. * Establishment of a system of technical and financial auditing and performance monitoring for ANE and the Road Fund. * Preparation and implementation of a strategy for human resources development, focusing on procurement, disbursement, accounting, financial management and project management in government road management institutions. * Strengthening of the program started under ROCS2 to help prevent the spread of HIV/AIDS. * Implementation of road safety measures, including improved collection of traffic accident statistics for identification of black spots, safety audits on the major trunk roads, incorporation of additional safety features and requirements in road design, and installation and maintenance of road structures designed for safety, such as guard rails. * Promotion of local contractors through training (including on labor-based methods) and other activities. * Strengthening of the unit at ANE responsible for addressing issues of AIDS, poverty alleviation and gender. A socioeconomic impact assessment of ROCS2 currently underway will provide the baseline data against which future progress can be measured. Component C: Strategy and preparatory activities for phase 2: US$6.7million This component will comprise: * Revisions and updating of the national integrated road sector strategy to reflect emerging priorities identified during ongoing stakeholder consultations. - Preparation of environmental impact assessment for phase two. * Preparation of social impact assessments for phase two investments. The social impact assessments will include baseline information for social monitoring, a participatory gender assessment, consultations on HIV/AIDS and a social assessment of HIV/AIDS. * Preparation of socioeconomic impact assessments of roads works for phase two investments. * Detailed design for roads of phase two investment. 38 Triggers for Phases two and three of the Roads and Bridges Management and Maintenance Program Phases two and three of the program will be appraised to evaluate their technical, economic, financial, environmental and social feasibility, following criteria satisfactory to IDA and reflecting experience gained during implementation of the previous phase. This approach of learning by doing will allow for continuous adjustment as the government's reform program advances. In order to help incorporate adjustments in project design, facilitate the appraisal process of each new phase, and determine its readiness for integration into the program, triggers have been identified. They will be measured and assessed as part of the program's monitoring and evaluation system. They will be reviewed during appraisal of each phase to confirm their validity. Specific triggers, actions by which to measure satisfaction, target dates and responsible agencies are listed in the table below. Trigger Specific action Date Responsible agency Phase I Agreed phase one road works Activities defined in the June 2005 ANE substantially completed. credit agreement substantially completed Separation of the Road Fund Decree creating the Road June 2004 Government from ANE completed. Fund as a legal entity passed. Road Board functioning Board meets regularly June 2004 Road Board Financial management of ANE Road Fund adopts a rolling ANE and Road Fund and the Road Fund satisfactory. three year maintenance plan and ANE implements it satisfactorily. Targets for condition of the road network to be verified by independent assessment. Semi annual and annual financial (up to the MTR) and periodic technical audits of Road Fund. Annual financial audits of ANE and periodic technical audits as may be required. Timely provision of agreed MPF to channel to Road Continuous Ministry of finance level of funds to the Road Fund Fund: equivalent US$40 monitoring and for counterpart funds. million in 2002, equivalent US$45 million in 2003, equivalent US$50 mnillion in 2004, equivalent US$55 million in 2005. Commitment to regular Audits carried out Annually (or semi ANE and Road Fund technical and financial audits annually for the Road Fund as _ _ _ _ _ _ _ _ _ ___ needed) 39 Trigger Specific action Date Responsible agency Satisfactory implementation of Activities defined in the June 2005 ANE the road safety plan. credit agreement substantially completed. Satisfactory implementation of Activities defined in the June 2005 ANE agreed HIV/AIDS prevention credit agreement measures in relation to road substantially completed sector. All preparatory activities have * Engineering designs and December 2004 ANE been satisfactorily completed. tender documents for first set of phase two investments have been completed * Environmental impact December 2004 ANE assessment and social impact assessment for phase two investments have been completed. 40 Phase 2 Agreed phase two road works Activities defined in the June 2008 ANE substantially completed. credit agreement substantially completed. Financial management of ANE Road Fund adopts a rolling June 2007 ANE and Road Fund and the Road Fund satisfactory. three year maintenance plan and ANE implements it satisfactorily. Targets for condition of the road network to be verified by independent assessment. Timely provision of agreed The agreed level of funding Continuous Ministry of Finance level of funds to the Road Fund for the Road Fund and for monitoring (direct transfer from and for counterpart funds. counterpart oil companies to funds(provisionally Road Fund account) estimated, based on technical maintenance estimate): US$62.5 million in 2006, equivalent US$70 million in 2007, equivalent US$77.5 million in 2008. Implementation of road safety Activities defined in the June 2008 ANE plan satisfactory. credit agreement substantially completed. Satisfactory implementation of Activities defined in the June 2008 ANE agreed HIV/AIDS prevention credit agreement measures. substantially completed. Commitment to regular Activities defined in the June 2008 ANE technical and financial audits credit agreement made. substantially completed. All preparatory activities have * Engineering designs and December 2007 ANE been satisfactorily completed. tender documents for first set of phase two investments have been completed * Environmental impact December 2007 ANE assessment and social impact assessment for phase two investments have been completed. 41 Table A2.1: APL- Roads and Bridges Management and Maintenance Program- 2001-2011 ProJectC~stb Co ce:~h~i~dI~ 1hl~1 A~ ~unt~ * tAmG ~ Aolt %~ Ain~,iM A. Roads & Bridges works 1. Routine Maintenance 50.3 32% 48.0 30% 60.0 38% 158 9% 2. Periodic Maintenance 224.1 34% 190.0 29% 240.0 37% 654 38% 3. Rehabilitation 240.0 60% 75.0 19% 85.0 21% 400 24% 4. Rural Roads & Bridges 69.0 35% 60.0 30% 70.0 35% 199 12% 5. Emergency Works 11.0 33% 10.0 30% 12.0 36% 33 2% 6. Road Safety 10.9 35% 10.0 32% 10.0 32% 31 2% 7. Engineering Services for the Road Sector 45.9 45% 23.5 23% 33.5 33% 103 6% Subtotal Roads & Bridges works 651.1 41% 416.5 26% 510.5 32% 1,578 93% B. Policy Reforms & Institutional Strengthening 1. Technical Studies & Assistance to the Road Sector 11.5 51% 6.0 27% 5.0 22% 22 1% 2. Expertise & Institutional Strengthening of ANE 11.6 51% 6.0 27% 5.0 22% 23 1% 3. Training 5.2 47% 3.0 27% 3.0 27% 11 1% 4. Support to Program & Project Management 1.9 38% 1.5 31% 1.5 31% 5 0% 5. ANE, DEPs & Road Fund Operating Expenses 10.3 35% 9.0 31% 10.0 34% 29 2% Subtotal Policy Reforms & Institutional Strengthening 40.5 45% 25.5 28% 24.5 27% 91 5% C. Strategy formulation & preparatory activities-Phase 2 and 3 1. Assistance for Strategy formulation 0.6 23% 1.0 38% 1.0 38% 3 0% 2. General and Technical Studies & Expertise to the Road Sector 11.4 40% 9.9 34% 7.5 26% 29 2% Subtotal Strategy formulation & preparatory activities-Phase 2 and 3 12.0 38% 10.9 35% 8.5 27% 31 2% Total Project Costs 703.6 41% 453 27% 544 32% 1,700 100% IDA Financing 162.0 23% 135 30% 135 25% 432 25% Donors'contribution to routine maintenance 6% 0% 0%1 Donors'contribution to periodic maintenance 41% 25% 15% 42 Table A2.2: APL-Phase 1 (APL-1) Roads and Bridges Management and Maintenance Program- 2001-2005 v-.pme . - - " :'... NewJ ROD -nu ~ (- .ft/PM v !S -l~ I___.__- A. Projects on-going financed 80 EN I Gorongosa - Caia P 2401 PA Rehab.J 45.30 11.33 85** USAID 94% Sofala 38 27 7 81 EN 242 Perba - Montepuez S 200 PA Rehab./ 29.10 7.76 380 ADB 90% C. Delgado 71 6 25 203 Rural Roads (Tete/Manica) T 140 U Rehab./ 4.04 4.04 DANIDA 100% Tete/Manica 37 29 12 204 Rural Roads (Niassa and Maputo) T 445 U Rehab./ 8.60 8.60 IFAD 100% Niass/Maput 39 22 12 Subtotal A. 105 02 87.03 31.72 B. Projects financed under bidding 16 EN I Rio Save -Muxungue P 107 PA Rehab./ 5.50 2.44 215 EU 100% Sofala 43 21 14 83 EN 8 Narpula - Nacala P 199 PA Rehab./ 22.00 19.25 669 EU 100% Nampula 78 2 29 84 EN 102 Vanduzi-Changara P 232 PA Rehab./ 19.60 13.07 435 ADB 90% Manica 56 13 14 85 EN 206 Chissano - Chibuto S 39 U Rehab./ 7.00 4.90 192** BADEA 80% Gaza 65 9 41 216 Rural Roads (Zambezia) T 452 U Rehab./ 12.20 9.90 KFW 100% Zambezia 39 24 12 201 14 Bridges Rehab./ 14.00 14.00 JICA 100% Various 45 20 12 90 N lI lnchope - Gorongosa P 74 PA Rehab./ 9.40 6.89 184 USAID 94% Sofala 51 17 21 Subtotal B. 1103 89.70 70.45 C. Projects with secure financing _ 91 EN 7/104/232 Narnacurra - Rio Ugonha P/S 317 PA/U Rehab./ 40.00 40.00 124 EU 100% Zambezia 58 1 1 12 7 EN 223 Cr.EN103 - Calotm/u S 127 PA Rehab./ 18.00 18.00 265** ADB 90% Tete 58 10 17 93 EN 231 Narnpevo - Gurue S 127 PA Rehab./ 12.26 12.26 39 IDB 80% Zambe'zia 87 1 61 94 EN 242 Litunde - Marrupa - Fr. C. Delgad( S 322 U Rehab./ 20.00 20.00 57 SIDA 100% Niassa 46 19 14 23 EN 256/205 Chokwe - Lagoa Nova S 128 PA Rehab./ 7.00 7.00 140 OPEC 80% Gaza 51 16 17 212 RuralRoads (National) T 80 U Rehab./ 1.60 1.60 DFID[SIDA 100% National 39 24 12 213 Rural Bridge Guija T U Rehab./ 10.00 10.00 NdF 80% 50 18 12 207 Rural Roads (Cabo Delgado) T 3251 U Rehab./ 4.39 4.39 NORAD 100% C. Delgado 37 28 12 208 Rural Roads (Niassa) T 126 U Rehab./ 1.20 1.20 IRISH 100% Niassa 39 22 12 210 Rural Roads (Nampula e Zarnb6zia) T 87 U Rehab./ 1.72 1.72 USAID 100% Namp/Zamb 37 31 12 215 District Roads (Nampula) T U Rehab./ 0.54 0.54 UNCDF 100% Nampula 37 31 12 211 Rural Bridges (Zambezia) _T U Rehab./ 4.45 4.45 EU 100% Zambezia 39 24 12 Subtotal C 1 639 _ 121.15 121.15 Trotal 1.__ __ _ P: Priniaiy; S: Secondary; T: Tertiary; PA: Paved; U: Unpaved *excluding taxes and duties ** including average estimated generated traffic 43 11. Roads proposed to be financed by IDA A. Road Rehabilitation works 42 EN I Maputo - Maracuene P 29.7 Rehab./ 4171To 15470 7.2 to 8. AC C Overla 6.587 277,246 Maputo 74 4 64% 15 EN I Maxixe - Cr. ER520/ENI P 123 RehabJ 690 TO 1580 6.0 AC AC 16.276 165,000 Inhambane 68 7 32% 29.1 EN I Cr. EN lER520 - Vilanculos P 109 Rehab./ 333 TO 627 6.0 AC AC 10.512 120,000 Inhambane 56 12 14% 44 EN 1 Manhica - Incoluane P 51.6 Rehab./ 1262 To 2296 7.5 DBST AC/DBS' 10.271 250,000 Maputo 54 14 16% Sub-Total A. 313 43.646 33% B. Road Periodic Maintenance works 3 EN I Muxungue - Inchope P 145 PM 147 TO 416 7.0 AC/DBST SBST 8.664 75,000 ofala/Manica 14% 43 EN I Maracuene - Manhica P 48 PM 2058 To 2177 7.2 to 8.0 AC kC Overla 4.608 120,000 Maputo 15% I EN I Incoluane - Zandamela P 159 PM 463 TO 1369 7.0 to 7.5 AC SBST 8.202 64,500 Gaza 21% 2 EN I Zandamela - Maxixe P 173 PM 654 TO 1376 5.8 to 7.0 AC SBST 8.838 64,500 Inhambane 17% Sub-Total B. 525 30.312 17% C. Rural Roads civil works 10 ER 405 Fr.Maputo - Chokwe T 31 Rehab./ 98 6.0 Gravel Gravel 0.489 19,800 Gaza 75 3 58% 37 EN221 Bene-Fingoe S 114 Rehab./ 28 6.0 To 6.2 Gravel Gravel 4.476 49,122 Nampula 37 29 17% 41 ER572 Meconta Corrane S/T 68 Rehab./ 100 To 190 6.0 to 7.0 Gravel Gravel 2.735 50,281 Nampula 53 15 30% 8 EN 239 Nametil - Cr.EN239/260 S 76 Rehab./ 217 to 239 6.0 iravel/Ear Gravel 3.947 65,000 Nampula 65 8 43% 14 ER555 Estima Magoe T 123 Rehab.! 62 6.0 Earth Gravel 1.949 19,800 Tete 72 5 47% Sub-Total C. 412 13.596 32% TOTAL.II 1,250 87.554 28% P: Primary; S: Secondary; T: Tertiary; PA: Paved; U: Unpaved (Km) US$ nillion Total APL 1 5,017 333 44 Table A2.3: (APL-1) Roads and Bridges Management and Maintenance Program- 2001-2005 Roads under IDA financing LenKgth TRAehah - AF .f4 - C PROVINCE No to US$ numm P/S/T - P0 SU . I;PE I- P . CONSRUCTnON CO _ ROAD .kiny . * iP ___X .- N. WOKS .VISI PINANCA EONOMIC PlP KM 42 EN I Maputo - Maracuene P 29.7 Rehab./ 4171To 15470 7.2 To 8.0 AC kC Overla 4 To 5 8.234 6.587 277,246 Maputo 15 EN 1 Maxixe - Cr. ER520/ENI P 123 Rehab./ 690 To 1580 6.0 AC AC 5 To 8 20.345 16.276 165,000 Inhambane 29.1 EN 1 Cr. EN1/ER520 - Vilancu P 109 Rehab./ 333 To 627 6.0 AC AC 6 To 7 13.140 10.512 120,000 Inhambane 44 EN I Manhica - Incoluane P 51.6 Rehab./ 1262 To 2296 7.5 DBST AC/DBST 4 12.839 10.271 250,000 Maputo Sub-Total A. 313 54.558 43.646 174.138 B. Road Periodic Maintenance works 3 EN I Muxungue - Inchope P 145 PM 147 To 416 7.0 AC/DBST SBST 5 To 7 10.830 8.664 75,000 Sofala/Manica 43 EN I Maracuene - Manhica P 48 PM 2058 To 2177 7.2 To 8.0 AC kC Overla 3 5.760 4.608 120.000 Maputo I EN I Incoluane - Zandamela P 159 PM 463 To 1369 7.0 To 7.5 AC SBST 4 To 6 10.253 8.202 64,500 Gaza 2 EN I Zandamela - Maxixe P 173 PM 654 To 1376 5.8 To 7.0 AC SBST 4 To 8 11.048 8.838 64,500 Inhambane Sub-Total B. 525 37.890 30.312 72.171 C. Rurl Roads civil works 10 ER 405 Fr.Maputo - Chokwe T 31 Rehab./ 98 6.0 Gravel Gravel 12 0.611 0.489 19,800 Gaza 37 EN221 Bene-Fingoe S 114 Rehab.J 28 6.0 To 6.2 Gravel Gravel 8 To 10 5.595 4.476 49,122 Nampula 41 ER572 Meconta Corrane S/T 68 Rehab./ 100 To 190 6.0 To 7,0 Gravel Gravel 13 3.419 2.735 50,281 Nampula 8 EN 239 Natmedl - Cr.EN239/26 S 76 Rehab./ 217 To 239 6.0 3raveVEart Gravel 11 To 14 4.934 3.947 65,000 Nampula 14 ER555 Estima Magoe T 123 Rehab./ 62 6.0 Earth Gravel 10 2.436 1.949 19,800 Tete Sub-Total C. 412 16.995 13.596 41.250 TOTAJ, 1,250 109.443 87.554 45 Table A2.4: APL-Phase 1 (APL-1) Roads and Bridges Management and Maintenance Program- 2001-2005 Pluri-annual rolling maintenance program- Main Features The pluri-annual maintenance program was developed based on the following principles, assumptions, and initial conditions: * The entire "maintainable" network is subject to annual maintenance intervention (routine or periodic maintenance). * The maintainable network is defined as those roads (links) in "good" or "fair" condition. Roads in "poor" condition are subject to rehabilitation according to the investment program, although they may be subject to spot treatment to keep them traversable. Roads that are "intraversable" are usually the object of special treatment such as bridge repair or drainage-related improvements on limited road segments and judgments regarding maintenance of the road surface must be made on a case by case basis. * The initial road condition data is taken from HNMS: Surface Good Fair Poor Total Paved 38% 40% 22% 100% Unpaved 21% 30% 49% 100% Total 25% 32% 43% 100% * The rehabilitation schedule is derived from the investment plan and smoothed to assume a uniform rate of work on each road class over the ten year plan. It is assumed that all roads that are rehabilitated move from "poor" to "good". The initial maintainable network and rehabilitation schedule is given as follows: Annual increase in Maintainable Network (Phase I) Road Class Start kms % Paved kms Primary 3,227 77% 60 Secondary 5,284 29% 110 Tertiary 5,937 7% 360 Total 14,448 31% 530 * Routine maintenance is applied to all "maintainable" roads (good or fair condition) that are not scheduled for to periodic maintenance in a given year. * Periodic maintenance is planned according to average maintenance cycles, recognizing that actual periodic maintenance requirements will vary with traffic and other factors. Actually periodic maintenance interventions will be determined by annual HNMS analysis and budget availability: Surface Cycle Paved 10 years Unpaved 5 years * The unit rates used for maintenance include those specific interventions that are considered to be most likely for the road class and surface, based upon recent prices and considering the increasing competition in the market for providing contracting services. 46 Intervention Primary Secondary Tertiary Routine Paved US$650 US$650 US$650 Routine Unpaved US$1,200 US$1,200 US$650 PM Paved US$61,500 US$54,000 US$54,000 PM Unpaved US$34,000 US$34,000 US$10,000 * The "full maintenance" plan was prepared assuming no budget constraints. Total Maintenance Costs inclusive of contingencies begin at US$68 million in the first year of the program and rise to US$127 million in year 10. * The "constrained maintenance" plan was prepared assuming that Road Fund has to cover all routine and periodic maintenance costs for Phase 1, except for scheduled IDA, EU, KfW and other donors contributions. Under this scenario total maintenance costs are restricted to US$54 million in year one and to US$1 10 million in year ten. * Under the constrained maintenance scenario, deferred periodic maintenance starts at 0 kms in year I and rises to approximately 500 kms in year ten. Cumulative deferred maintenance over the ten-year program is 2,612 kms. RBMMP-Pluri-Annual Maintenance Program by Phase (Millions of US Dollars) Phase I II III Total Full Maintenance Scenario PM Maintenance Kms 7,530 7,586 8,767 23,883 Total Maintenance Costs US$210 US$225 US$290 US$725 Constrained Maintenance Scenario PM Maintenance Kms 7,530 6,375 7,367 21,271 Total Maintenance Costs US$210 US$189 US$243 US$643 Cumulative Deferred PM 0 1212 1400 2,612 47 Pluri-Annual Maintenance: Full Maintenance Component 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Totat Routine Maintcnance (km) 12,840 13,335 13,834 14,343 14,866 |15,410 15,981 16,553 17,125 17,699 151,986 Periodic Maintenance (km) 1,510 1,941 2,017 2,062 2,382 2,538 2,667 2,795 2,923 3,049 23,884 Routine Maintenance US$11 US$12 US$12 US$13 US$14 US$16 US$17 US$19 US$20 US$22 US$157 (cost Million US$) ______ 4_3__US_55_ S_69__ _ _ __89_ ___ ___ _ _______05____ __ __5 Periodic Maintenance US$43 US$55 US$57 US$55 US$69 US$75 US$81 US$89 US$96 US$105 US$725 (cost Million US$) _ _ _ .__ _ . _ Pluri-Annual Maintenance: Constrained Maintenance (Available Funds) Component 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total Routine Maintenance 12,840 13,335 13,834 14,343 15,247 15,578 15,931 16,285 16,641 16,997 151,031 Periodic Maintenance 1,510 1,941 2,017 2,062 2,001 2,133 2,241 2,349 2,456 2,562 21,271 Routine Maintenance US$11 US$12 US$12 US$13 US$15 US$16 US$17 US$18 US$20 US$21 US$155 (cost Million US$) __7S_-$ - _7_S Periodic Maintenance US$43 US$55 US$57 US$55 US$58 US$63 US$68 US$74 US$81 US$88 US$643 (cost Million US$) . _ _ _ 48 Network Condition - All Network 30,000 25,000 _ 20,000 E 15,000 10,000 5,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year l-Poor El Fair aGood 49 Network Condition - Paved Network 6,000 5,000 4,000 E3,000 2,000 1,000, 0 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year *ePoor EFair ElGood| Network Condition - Unpaved Network 25,000 ----- . 20,000 15,000 10,000 5,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year F Por o Fair 1Goo.d 50 Annex 3: Estimated Project Costs Local Foreiga Total Piroct Cost byl -pe t- (.P-L) - us $ _m A. Roads & Bridges works 202.0 367.0 569.0 1. Routine Maintenance 27.0 18.0 45.0 2. Periodic Maintenance 72.9 125.1 198.0 3. Rehabilitation 62.7 146.3 209.0 4. Rural Roads & Bridges 22.8 34.2 57.0 5. Emergency Works 4.0 6.0 10.0 6. Road Safety 2.1 7.6 9.6 7. Engineering Services for the Road Sector 10.5 29.9 40.4 B. Policy Reforms & Institutional Strengthening 13.4 22.2 35.6 1. Technical Studies & Assistance to the Road Sector 1.5 8.7 10.2 2. Expertise & Institutional Strengthening of ANE 1.3 9.0 10.4 3. Training 1.4 3.0 4.4 4. Support to Program & Project Management 0.2 1.4 1.6 5. ANE, DEPs & Road Fund Operating Expenses 9.0 9.0 C. Strategy formulation & preparatory activities-Phase 2 1.0 9.1 10.1 1. Technical Studies & Assistance to the Road Sector 0.1 0.5 0.5 2. Expertise & Institutional Strengthening of ANE 1.0 8.6 9.6 Total Baseline Costs 216.4 398.3 614.7 Physical Contingencies 8.2 21.5 29.7 Price Contingencies 33.4 25.9 59.3 Total Project Costs 258.0 445.6 703.6 Total Financing Required, of which 258.0 445.6 703.6 Government 13.5 0.0 13.5 Road maintenance Fund 117.1 80.7 197.8 Other Donors 88.5 223.3 311.8 IDA 33.5 128.5 162.0 To be financed 5.4 13.1 18.5 51 Annex 3: Estimated Project Costs (cont.) Goods 0.6 1.9 2.5 Works 191.5 410.1 601.6 Services 55.5 28.4 83.9 Training 1.4 3.8 5.2 Other 9.0 1.3 10.3 Total Project Costs 258.0 445.6 703.6 Total Financing Required, of which 258.0 445.6 703.6 Government 13.5 0.0 13.5 Road maintenance Fund 117.1 80.7 197.8 Other Donors 88.5 223.3 311.8 IDA 33.5 128.5 162.0 To be financed 5.4 13.1 18.5 52 Annex 3: Estimated Project Costs (cont.) Local Fomign Tot81 Lcal Foreui- Tita Prct CoSt b Component (APL-) iM 2M lhion) -(US$ iiai) A. Roads & Bridges works 1. Routine Maintenance 513 342 855 27.0 18.0 45.0 2. Periodic Maintenance 1,385 2,377 3,762 72.9 125.1 198.0 3. Rehabilitation 1,191 2,780 3,971 62.7 146.3 209.0 4. Rural Roads & Bridges 433 650 1,083 22.8 34.2 57.0 5. Emergency Works 76 114 190 4.0 6.0 10.0 6. Road Safety 39 144 183 2.1 7.6 9.6 7. Engineering Services for the Road Sector 200 567 767 10.5 29.9 40.4 Subtotal Roads & Bridges works 3,837 6,974 10,811 202.0 367.0 569.0 B. Policy Reforms & Institutional Strengthening 1. Technical Studies & Assistance to the Road Sector 29 165 194 1.5 8.7 10.2 2. Expertise & Institutional Strengthening of ANE 25 172 197 1.3 9.0 10.4 3. Training 27 57 84 1.4 3.0 4.4 4. Support to Program & Project Management 3 27 30 0.2 1.4 1.6 5. ANE, DEPs & Road Fund Operating Expenses 171 0 171 9.0 0.0 9.0 Subtotal Policy Reforms & Institutional Strengthening 255 421 676 13.4 22.2 35.6 C. Strategy formulation & preparatory activities-Phase 2 1. Assistance for Strategy formulation 1 9 10 0.1 0.5 0.5 2. General and Technical Studies & Expertise to the Road Sector 18 164 182 1.0 8.6 9.6 Subtotal Strategy formulation & preparatory activities-Phase 2 19 173 192 1.0 9.1 10.1 Total Baseline Costs 4,112 7,567 11,679 216.4 398.3 614.7 Physical Contingencies 156 408 564 8.2 21.5 29.7 Price Contingencies 635 491 1,126 33 26 59.3 Total Project Costs 4,902 8,466 13,368 258.0 445.6 703.6 53 Annex 3: Estimated Project Costs (cont.) A. Roads & Bridges works 1. Routine Maintenance - - 47.5 94 2.8 6 - 50.3 7% 2. Periodic Maintenance 38.1 17 127.8 57 53.5 24 4.8 2 224.1 32% 3. Rehabilitation 55.8 23 12.0 5 - 172.2 72 - 240.0 34% 4. Rural Roads & Bridges 17.3 25 0.9 1 - 50.7 74 - 69.0 10% 5. Emergency Works 6.3 57 0.3 3 - - - 4.4 40 11.0 2% 6. Road Safety 7.1 65 0.3 2 - - - 3.6 33 10.9 2% 7. Engineering Services for the Road Sector 14.t 31 0.0 12.2 27 19.2 42 0.4 1 45.9 7% Subtotal Roads & Bridges works 138.6 21 13.5 2 187 29 298.4 46 13.2 2 651.1 93% B. Policy Reforms & Institutional Strengthening I . Technical Studies & Assistance to the Road Sector 4.8 42 0.0 - - 6.7 58 - 11.5 2% 2. Expertise & Institutional Strengthening of ANE 7.4 64 0.0 - - 4.2 36 - 11.6 2% 3. Training 2.7 51 0.0 - - 2.5 49 - 5.2 1% 4. Support to Program & Project Management 1.9 100 0.0 - - - - 1.9 0% 5. ANE, DEPs & Road Fund Operating Expenses - - - 10.3 100 - - 10.3 1% Subtotal Policy Refonrs & Institutional Strengthening 16.8 41 0.0 10.3 26 13.4 33 - 40.5 6% C. Strategy formulation & preparatory activities-Phase 2 1. Assistance for Strategy formulation 0.6 100 0.0 - - - - 0.6 0% 2. General and Technical Studies & Expertise to the Road Sector 6.1 53 0.0 - - 5.3 47 11.4 2% Subtotal Strategy formulation & preparatory activities-Phase 2 6.7 56 0.0 - - 5.3 44 12.0 2% Total Project Costs 162.0 23 13.5 2 197.8 28 311.8 44 18.5 3 703.6 100% 54 Annex 4: Cost Benefit Analysis Summary MOZAMBIQUE: Roads and Bridges Management and Maintenance Program A. The Integrated Road Sector Strategy and road selection and priorities The sine qua non condition underpinning the Integrated Road Sector Strategy for Mozambique was assuring the sustainability of the national road network. Sustainability focuses on two aspects of the road management system. On the works side, priority is given first to maintaining roads that are already in transitable condition before any additional roads are added to the network. On the resource side, revenues must be collected from road users in a manner ensuring the flow of funds to cover all maintenance needs. These principles translate into the following simple rules for roads selection: * The highest priority is given to routine maintenance for the entire maintainable network. * Periodic maintenance of all roads in good or fair condition must be programmed and budgeted in such a way that road conditions do not fall below the level of "fair." * Prioritized rehabilitation to bring the unmaintained network into service should be undertaken only when maintenance can be assured both by financial resources and by the capacity of the sector to carry out the required maintenance works. A.1. Network Priorities The network strategy decided is to ensure connectivity on the priority trunk network, expand rehabilitation in the densely populated and economically productive regions of the Centre and North, provide access to high-priority economic poles and improve and expand rural accessibility-all the while attempting to balance rehabilitation works among the ten provinces. Primary Roads: National Integration and International Connectivity Placing emphasis on the improvement of the main North-South road will contribute to national unity, promote internal commerce and improve access to major social, political and commercial centres. A second goal for the prioritisation of the primary network will be to ensure secure and continuous connectivity to the network for all provincial capitals. The main elements of the strategy for primary road rehabilitation are: * Completion of an all-year, all weather, well-maintained trunk road along the main north-south corridor, including the construction of a bridge to cross the Zambezi River at Caia. * Connectivity between provincial capitals and the main trunk system. * Connections between provinces-especially provincial capitals. * Maintaining or a high level of service on the main international corridors (Maputo, Beira, Nacala, and Tete). Tertiary Roads: Balanced and Equitable Economic Development Improving access to rural populations and markets, especially in densely populated areas, is the second pillar of the network strategy. Many of Mozambique' s citizens are effectively cut off from the transportation network, depriving them of access to markets and basic social services. Improving the tertiary road network, including feeder roads, will extend economic and other opportunities to these populations. 55 In all, the ten-year Investment Plan calls for almost doubling the maintained tertiary network most of it accomplished via labor-based rehabilitation and maintenance techniques that have proved very effective under the Feeder Roads Program (ROCS 1). The main elements of the strategy for tertiary and feeder road rehabilitation are: * Priority to tertiary and feeder road development in areas of agricultural surplus * Priority to economically disadvantaged regions * Priority to the northern half of the country * Priority to feeder roads connecting to existing rail lines. Secondary Roads: Targeting Production Poles All road investments and maintenance strategies are based on the dual targets of economic feasibility and systematic consideration of social criteria, such as regional balance. This is especially important with respect to identifying crucial gaps in the secondary road network. The main elements of this approach are to: * Connect poles of major economic activity-agriculture, mining, industry, fishing, both existing and potential-to the national road network; * Prioritise roads that give access to existing or potential tourist sites; * Encourage commerce and trade by continuing to ensure good access to the main ports, rail lines, and inland border crossings; * Connect all cities, including provincial capitals, to the national road network; * Connect district capitals and other important towns to the national road network. A.2. Prioritized Investment Plan The method used for project prioritization in conjunction with the Road Sector Strategy was multi- criterion analysis (MCA). The individual criteria were chosen partly on the basis of survey results from stakeholders' workshops conducted around the country (in Maputo, Beira and Nampula), and they were grouped into five general subject areas. The main criteria and the weights they were given in the MCA process were: * Economic feasibility: 40%; * National integration: 20%; * Accessibility: 20%; * Social factors: 15%; * Environmental issues: 5%. Priority Projects In addition to the periodic maintenance program, which is in any case the first priority, the final APL-1 list for prioritization purposes contained 58 roads for rehabilitation and the preparatory activities (feasibility and detailed design) for the Caia bridge in order to timely respond to the road user demand expressed during the public consultations. Table A4.1 presents the final ranking using the base weights described above, along with some of the values used in the determination of the ranking. Out of these priorities, the roads and bridges under IDA financing have been selected to respond to the rehabilitation and periodic maintenance of the North-South priority trunk (ENI) and the rural roads in the provinces of Nampula and Tete as targeted by the road sector strategy. 56 TabI,eA4.1. Nationall Road Sctor Strate'"'-Road Rehabilitation Prioritie's(C~osts in -S$ Mi11Io - Road ~ Road Class Sufc Lcngth lntervention AADT Financial Fiancil IRR NPV DTonor Fin% Provinc'~ Stanr Rank, No, Final TotaliWI Yea 93 EN 231 Nampevo -Gurue S P 127 Rehab 39 12.3 12.3 619' 148 1IDB 80% Zamabezia 2002 1 312 EN 8 Nampula - Cr. EN81104 P U 159 Rehab 93 10.6 10.6 158% 00 0.0 0% NarnpLula 2006 2 ___(lap.ala). 83 EN 8 Nampula -Nacala P P 199 Rehab 669 22.0 19.3 29% 5.1 ~CE 100 Nampala 2002 3 53 ~EN -101 Lindela - Inh-ambane -P -P 33- Rehab 540- 2.3 12.3 38% 00 00 0 In-hanibanei 2006 4 50 EN 2 Matola - Boane P P 24 Rehab 5,670 4.9 4.9 314% 0.0 0.0 0% Maputo 20-065 10 ER 405 Fr. Maputo - Chokwe T U 131 Rural 42 0.6 0.6 58% 0.0 IDA 95% -95 za 2-002- 6 55 EN 249 Mandimba - S U 139 Rehab 156 8.1 ~ 8l 3% 0.0 0.0 ~0% LNiassa 2006 7 Lichinga LI___L__ 42 EN I Maputo - Marracuene P P 30 Rehab 111.574 8. 82 4% 0.0O IDA 95% iMapuio 2002 8 64 EN 259 Inhambane - Tofo S P 21 Rehab -43 2.5 2.5 82% 0.0 0.0 0% lnhasr,banc 2006 9 14- ER 555 Estima - Magoc T U 123 Rural 29 2.4 2.4 47% 0.0 IDA 95% Tete 2002 10 81 EN 242/106 Pemba - S P 200 Rehab 380 29.1 7.8 25% 0.0 ADB 9%Cb 021 ___Montepuez Delgado 73 JEN 239 Nampula - Nametil S U 74 Rehab 198 4.4 4.4 41 % 0.0 0.0 0% Na-mpula 2006 12 15 EN I Maxixe-Cr. P P 123 Rehab 1,018 20.3 20.3 32% 60.0 -fIDA 95% Inhaffan 2002 13 ___ER520/ENI1 8 EN 239 Narmetil - Cr. S U 76 Rural 228 4.9 4.9 43% 0.0 IDA 95% Nampula -~2002 14 EN239/260 _____ 85- EN 206 Chissano - Chibuto S U 39 Rehab 192 7.0 14.9 41% 2.8 BADEA 180% Gaza 2002 15 62 EN 231 Gurue - Lioma S U 46 Rehab 120 2.7 2.7 27%/1 0.0 0.0 0% Zambezia 2006 16 12- ER 516 Nacaroa - Cr. EN T U 71 Rehab 21 1.5 1.5 40% 0.0 0.0 0% Namrpula--- 2006 17 241/516 27 ER 490/483 Mualama - Gile T U 134 Re-hab 16 2.7 2.7 81% 0.0 -0.0 0% Za-mbe-zia 2006 18 52 EN 8 Cuamba - Mandimba P U 152 Rehab 75 8.8 8.8 18% 0.0 0.0 0-% Niass a 2006 19 5 EN 201 Catembe - Bela Vista S U 43 Rehab 145 2.8 2.8 50% 0.0 0.0 0% Maputo 20-06 20 50-0 EN -I Caia -Bridge P~ p P 0 Rehab 0 80.0 80.0 12% 0.0 0.0 0% Zambezia 2006 21 51- EN ~7/227 ~Miiange - ~Mocuba -P U 171 Rehab 63 9.9 9.9 15% 0.0 0.0 0% Zambezia 2006 22 60 EN 3/202 Boane - Bela Vista P/S- 7U- 66 Rehab 458 3.8 3.8 90% 0.0 0.0 0% Mpto 2006 23 7 EN 223 Cr. EN 223/103 - S P 127 Rehab 265 18.0 18.0 17% 18.3 ADB 90% Tete 2002 24 Calonmut 91 EN 7/104/232 ~Namacurffa -;P p - 317 Rehab 140 40.0 40.0 12% 60.0 -CE 1 0-0 Zam-b ezi a 2002 25 Rio Ligonha 29.1 EN 1 Cr. EN1I/ER520 - P P 109 Rehab 357 13.1 13.1 14% 0.0 IDA 95%k In-hanibane 2002 26 Vilankulo 84 EN 102 Varnduzi - Changara P P 232 Rehab 435 19.6 13.1 14% 2.4 AD-B 90 aia 2002 27 63 EN 255/474 EN 231/255 - S/T U 160 Rehab 28 5.4 5.4 12% 0.0 0.0 0% Zamb-ezia --2006 28 ___Milange 65 ER 405 Magude - Fr. Gaza T U 41 Rehab 73 0.8 0.8 48% 0.0 -0.0 0 MaLuto 2006 29 26 ER 485 Olinga - Mocubela T U 65 Rebab 24 1.3 1.3 30% 0.0 0.0 0% Zambezia 200 30 z44 E I Manhica - Incoluane P P 52 R~eh-ab 246 12.8 12.8 16% 0.0 IDA 945%1 MapLuto 2002 31 29.2 EN I Vilankulo - Rio Save P P 112 Rehab 240 13.8 13.8 12% 0.0 0.0 0% Inharaubane 2006 32 41 ER 572 Meconta - Corrane SIT U 68 Rural 109 3.4 3.4 30% 60.0 ID-A ~ -95% Nampula 2002 33 28 ER 491 Gild - Cr. T U 91 Rehab 25 1.8 1.8 -3 7% 0.0 0.0 0 Za-mbezia 2O006 3 ER4911EN232 23 EN 2561205 Chokwe -Lagoa S P 128 Rehab 140 6.9 6.9 17% 0.0 OUP-EC T80%Gaza 200YO-2 35 NovaI 90- EN I Inch-ope -Goro~ngosa -P P 74 Rehab 184 9.4 6.9 21% 0.0 USAID 94% Sofala 20 36 3-8 EN 224 Quelimane - Chinde S U 85 Rehab 23 4.2 4.2 T818% 0.0 0.0 0 Zambezia 2006 37 2 13- EN -208Gu igaaB ridge 0 0 0 Rural 0 10.0 I10.0 12% 0.0 NDF 100 Gaza 3000 38 3-9 EN ~243 Mac-omia - Oasse S P 101 Rehab 95 15.7 15.7 2% 0.0 0.0 0% fCabo 2006 39 1 ~~~~~~~~~~~~~~~~~~j___Delgado 94 EN 242 Litunde - Fr. Cabo S U 322 Rehab 57 20.0 20.0 14% 0.0 ASDI ! to Niassa 2002 40 Delgado 1 66 ER 449 Mutarara - Vita Nova T U 43 Rehab 1 4 0.8 0.8 10% 0.0 0.0 ~0% ITete 2006 4 1 69- ER 493/UC Cr 231/493 - TU 12-1Re-hab 19 2.0 2.0 14% 0.0- 0.0 0% Zarmbezia 2006 42 Alto Mo oue 7-1 E-R 45-0 Cr. ER450/ENIO 3 - T U 210 R1e-hab 20 4.2 4.2 1T4%9 0. 0 0.0 0% Tt20643 Mutarara 201 .14 Bridges 0 0 0 Rehab 0 14.0 14. 12% 0.0 JICA 100 Natio-nal 30-00 44 57 Table A4A.: National Road Sector Strategy-Road Rehabilita Priorites (Costs in Ss =illion) Road Road Class Surface tngth lit rvention AALYT Financial Fiancial IRR NPV Donor Fin% Province Start Rank No. _____ Final Total R3 I I J Year 16 EN I Rio Save - Muxungue P P 107 Rehab 215 5.5 2.4 14% 5.4 CE 100 Sofala 2002 45 34 EN 213 Dondo - Muanza S U 76 Rehab 124 37 3.7 29% 0.0 0.0 0 Sofala 2006 46 22 EN 241 Cr. EN8/241 - S U 68 Rehab 43 10.9 t10.9 9c 0.0 0.0 0% Nampula 2006 47 Memba 13 ER 538 Metangula - T U Rehab 2 8.7 8.7 0.0 0% Niassa 2006 48 Lupilichi 9 EN 242 Kwe-Kwe - Balama S U 80 Rehab 26 10.9 10.9 1% 0.0 0.0 0% Cabo 2006 49 _ . _ ~~Delgado __ 204 Rural Roads (Niassa e T U 445 Rural 0 8.6 8.6 |12% 0.0 IFAD 100 Niassa 3000 50 Maputo) % - 208 RuralRoads (Niassa) T U 126 Rural 0 1.2 1.2 12% 0.0 IRLAN 100 'Niassa 3000 50 DA % 211 Rural Bridges (Zambezia) T 0 0 Rural 0 4.5 4.5 12% 0.0 CE 100 Zambezia 3000 52 212 Rural Roads (National) T U 80 Rural 0 1.6 1.6 12% 0.0 SIDA/D 100 Zambezia 3000 52 FID 1%1 216 Rural Roads (Zambezia) T U 452 |Rural 0
Groupe de la Banque mondiale · Project Appraisal Document
Mozambique - Roads and Bridges Management and Maintenance Program Project (Phase I)
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