Chad - Transport Sector Memorandum

Document of The World Bank FOR FFICIAL IS nNIY CONFIDENTIAL Repert No. 1880-CD CHAD TRANSPORT SECTnR MEM.mRANDUM June 7, 1978 yestern, Arica Projects Department Highway Division This dofcIument s estriteddstribut and may be used by reelpents only In the performance o the-ir -oflisci dutles. Its contents-may-'niot otherwiseC bedi;scsd-without World Bank authorlzmat;o. Currency Equivalents 1 French Franc = 50 CFA Francs US$1.00 = CFAF 245 (March 1977) Fiscal Year January 1 - December 31 System of Weights and Measures Metric British/US Equivalents 1 meter (m) 3.3 feet (ft) 1 kilometer (km) 2 = 0.6 miles (mi) 1 square kilometer (km ) = 0.4 square miles (sq mi) 1 metric ton (m ton) = 1.1 tons (short tons) 1 liter (1) = 2.1 pints (pts) Abbreviations and Acronyms ADB - African Development Bank ADF - African Development Fund ASECNA - Agence pour la Securite de la Navigation Aerienne en afrlque et a Madagascar ATEC - Agence Transequatoriale des Communications BF - Bureau de Fret CAF - Central African Empire CMPA - Centre de Modernisation des Productions Animales CTT - Cooperative des Transporteurs Tchadiens DCA - Directorate of Civil Aviation DLCCN - Direction de la Lutte Contre les Calamites Naturelles DPD - Directorate of Planning and Development DPW - Directorate of Public Works Di - Directorate of Transport ENTP - Ecole Nationale des Travaux Publics FAC - Fonds d'Aide et de Cooperation FAO - Food and Agriculture Organization FDAR - Fonds de Developpement et d'Assistance Rurale FED - Fonds Europeen de Developpement FRG - Federal Republic of Germany ICAO - International Civil Aviation Organization IDA - International Development Association MOCMG - Ministry of Civil Works, Mines and Geology MOPET - Ministry of Planning, Economy and Transport RPDO - Road Planning and Design Office SEH - Service des Etudes et de l'Hydraulique SONACOT - Societe Nationale de Commercialisation du Tchad STTF - Societe Tchadienne de Transport Fluvial UNCTAD - United Nations Conference for Trade and Development UNDP - United Nations Development Program UNIDO - United Nations Industrial Development Organization UNSO - United Nations Sahel Office USAID - United States Agency for International Development vpc - vehicle operating costs vpd - vehicles per day FOR OFFICIAL USE ONLY CONFIDENTIAL CHAD TRANSPORT SECTOR MEMORANDUM Table of Contents PAaa No. T T7ArVnn7#I'PT AM1 Background .......................************** *. Sector. Summary .................................... 2 II. GOVERNMENT OBJECTIVES AND INVESTMENTS .................. 4 III. MAJOR SECTOR ISSUES ............ ... .................. 6 Economic Justification of Transport Investments ... 6 Recurrent Expenditures for Road Maintenance ....... 7 Regulation of the Transport Industry .............. 7 Development of Domestic Air Transport ............. 8 Transport Planning and Coordination; Training Needs 8 Assistance to Domestic Construction Industry ...... 8 Use of Labor-Based Technologies ................... 9 IV. SECTOR STRATEGY .. .. .. ... ...q*** *****9 Guid0g Principles *......* 10 Sector Objectives ................................. 10 Implementation Program ................*********.. This memorandum was prepared by Mr. Asif Faiz, Economist, on the basis of in.onation collecteLd during a hglhway supervisiOn missbilon in-I De.ceumber 1976 and an appraisal mission in March 1977. This dA*tm4nt has disribution and may be used by reciiens Only in th of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ANNEXES Page No. ANNEX I - BACKGROUND AND DESCRIPTION OF THE TRANSPORT SECTOR I. INT RODUCTION ...... ......D.C.T. ..................... 14 II. THE ECONOMY ...14 Fiscal Performance .................................... 15 Development Prospects ................................. 16 III. THE TRANSPORT SECTOR ... i .............................. 16 Importance of The Transport Sector in the Economy ... 17 International Transport Routes ........................ 17 Road Transport .............. .. ...... ............. . 19 A. The Road Network ............................. 19 B. Traffic ........................... .......... 20 C. Vehicle Fleet ................................ 21 D. Fuel Consumption ............................. 21 E. Road User Charges ............... . ......... . 21 F. Road Maintenance ............................. 22 Air Transport ........ ........... ......... . ............ 24, A. The Air Transport System ..................... 24 B. Traffic ..*......... ......................... 24 C. Aircraft Fleet ............................... 25 D. Fuel Consumption . ............................ 25 E. Airport User Charges and Expenditures ....... 25 F. Development of Domestic Air Transport ........ 26 Inland River and Lake Transport ....................... 27 A. Transport Characteristics .................... 27 B. Development of River and Lake Transport ...... 27 Transport Development Prospects ....................... 28 Organizational Structure ............................ 29 Staffing and Training ..... .. 31 Profile of Past Investments in the Transport Sector ... 32 Government Sector Objectives and Investment Program .. 32 A. Road Transport ............................... 33 B). A.iportsL ...................... *............... 37I C. River and Lake Transport ..................... 37 D. Pipeline ...................................... 3 E. Railways .................................... 38 ANEXES (Coninued) P aeNo IV. THE TRANSPORT INDUSTRY ............. . ............ .. .... 38 Road Transport Industry ..... ................ 38 A. - Road Transport Demand ........................ 38 B. Road Transport Policy and Regulations ........ 39 C. The Truck Fleet ............. ................ 42 D. The Cooperative des Transporteurs Tchadiens .. 44 E. Economic Characteristics ..................... 48 F. Strengthening of the Road Transport Industry.. 54 Inland Water Transport Industry ....................... 55 A. Transport Demand ....................... .... . 55 B. Industry Characteristics ..................... 56 C. Tariffs ...................................... 56 Air Transport Industry ................................. 56 A. Air Transport Demand ......................... 56 B. Air Tchad ...................... .......... .. 57 C. Tariffs ............... ..................... 57 V. ENGINEERING AND CONSTRUCTION .......................... 58 Domestic Construction Industry ........ . .. 58 Appropriate Intermediate Technologies ................. 59 ANNEX II - PRINCIPAL EXTERNAL TRANSPORT ROUTES ... 0 -is an es .. .. .. ... .. .. .. .. .. .. ... .. .. .. .. .. . Costs .. ............................................... ... 60 Fu u e T e d . . ....................... ........ .... o.... 62r A~ - n T aI,C' E bles Table 1. Intermediary Costs - Port to N'Djamena, 1974 63 Table 2. Retail Price of Selected Items in N'Djamena 64 as a Function of Import Routes and Comparison of Retail Prices with CIF Costs AnnexU MJaps: Commodity Flows - Dry Cargo Imports by Surface Routes, 1974 (IBRD 13585) Commodity Flows - Fuel Imports by Surface Routes, 1974 (IBRD 13586) Commodity Flows - Exports by Surface Routes, 1974 (IBRD 13587) ANNEX III - SECTORAL PROGRAM FOR THE 4-YEAR ECONOMIC AND SOCIAL DEVELOPMENT PLAN - 1978-81 ................. * .... .. 68 Transport Infrastructure ........ ...... ......... . .......... 68 A. Importance of the Subsector .......s............. 68 B. Envisaged Investment Program ...................... 68 C. Underlying Principles and the Proposed Action Program ............................... ......... 69 ANNEXES (Continued) Page No. Transport Industry .... o.. o. .. ....... .... ............ . . 71 A. Road Transport .... .. .. .. .. .. ... ..... .. 71 B. Air Transport .. ... . ........... ....... .... 71 C. River Transport .. . . ...................... . 72 ANNEX IV - ROAD PROJECTS FINANCED BY DEVELOPMENT AGENCIES ....... 73 World Bank Activities ............................... 73 A. Past Operations .73 B. -Assessment of Past Highway Operations o......... 74 Road Projects Commitments By Other Development Agencies .... 76 A. FED Program for Paved Roads ..................... 76 B. CILSS/UNSO Project for Improvement and Maintenance of Secondary Roads in the Sahelian Zone .........o 76 C. USAID-Financed Training Unit ........o.......... 77 ANNEX V - RURAL ROAD NEEDS IN CHAD ............................ 78 - Introduction ..... 78 - Rural Access/Feeder Road Needs 78 - Assessment of Chadian Assistance for a possible Rural Roads Project ................... 81 - Proposd Study for a Rural Roads Project . 82 - Recommendations .......................................... 83 ANNEX VI - CHECKLIST OF MAJOR ISSUES ............................ 85 ANNEX VII - BIBLIOGRAPHY OF BANK-SPONSORED ECONOMIC STUDIES, 1969-78 ....................................... 86 ANNEX VIII - GENERAL BIBLIOGRAPHY ............................... 87 STATISTICAL ANNEX Social Indicator Data Sheet 1. Principal External Trade Corridors 2. Traffic Diversion on Principal External Routes 3. Traffic Diversion on Principal External Routes - Totals 4. Highway Network 5. Vehicular Traffic on the Highway Network 6. Growth of the Vehicle Fleet 7. Growth of the Government Vehicle Fleet (AT) 8. Fuel Consumption 9. Government Revenues from Road Users 10. Principal Airfields under ASECNA Management 11. Air Freight 12. Air Traffic STATITTCAT ANNE?Y (Cn"tt'd) Tables 13. ASECNA Expenditures and Revenues 14. External Assistance: Transport Sector 15. Expenditures on Highways 16.. Public Sector Investments 17. Proposed Airport Infrastructure Improvement Program 18. Rehabilitation of Air Strips Under IDA Sahelian Zone Project 19. Estimated Demand for Freight Transport 20. Distribution of International Freight Transport Demand by Type of Commodity. 21. Age Spectrum of CTT Truck Fleet in 1974 22. Tonnage Transported by CTT in 1975 23. CTT - Distribution of Truck Ownership 24. Value of the Production of Freight Transport Industry 25. Distribution of Transport Revenues Generated by CTT Membership 26. Principal Road Transport Tariffs 27. Financial Cost of Transport 28. Vehicle Operating Costs as a Function of Traffic and Road Surface Characteristics 29. Intermediary Costs Between CIF Price Port of Entry and Retail Price in N'Djamena 30. Transport Costs, Duties, and Taxes on Selected Items Destined to N'Djamena via Douala 31. Freight Transport on Inland Waterways 32. Air Tchad - Operations, Revenues and Expenditures 33. Air Transport TAriffs from N'Djamena 34. Domestic Training Resources I. Monthly Internal Air Tra...fc 197. II. Financial Cost of Freight Transport, Net of Taxes - Semi-r.aile - Rot 1 III. Financial Cost of Freight Transport, Net of Taxes - IV. Financial Cost of Freight Transport, Net of Taxes - Truck Trailer Unit - Route 3 V. Financial Cost of Freight Transport, Net of Taxes - Single Unit Truck - Route 4 VI. Financial Cost of Freight Transport, Net of Taxes - Single Unit Truck - Route 5 ORGANIGRAMMES I. Ministry of Planning, Economy and Transport II. Ministry of Civil Works, Mines and Geology III. CTT - Existing Organization IV. Freight Bureau - Proposed Organization V. CTT - Proposed Organization MAPS I. Chad - International Transport Connections (IBRD 2684R2) II. Chad - Distribution of Soils (IBRD 13538R) III. Chad - Transportation (IBRD 13124) IV. Chad - Third Highway Project (IBRD 13241) CHAD TRANSPORT SECTOR MEMORANDUM L. INTRODUCTION Background 1. The pace of Chad's development in the past decade has been slow due to the country's formidable growth problems which have been further aggravated by internal political unrest, severe drought, declining economic activity, extreme poverty, and stagnating exports. Until 1968 budget and fiscal per- formance was satisfactory but since then Chad has experienced rapid inflation, rising expenditures and declining revenues, coupled with rising military spending, increased demands for Government services and a limited capacity to mobilize savings. 2. GDP increased from 1967-75 by about 1.0% p.a. in real terms; with population growth at about 2.5% p.a., GDP per capita declined by about 1.6% p.a. Budget deficits rose from CFAF 2 billion in 1970 to CFAF 4.1 billion in 1974, then fell to CFAF 2.1 billion in 1975, when tax arrears were collected and spending reduced. As a result, the Government has depended on external aid for most of its investment needs. Even with the Government's recourse to external budget subsidies there will be considerable difficulty in reducing the arctmulated navmant arrears of CFAF 11.6 billion (1976), 80% of which was owed to domestic suppliers and 20% to foreign creditors. The GDP equivalent of total aid in 1972 averaged 12%, rose to 24% in 1974 and steadied at 17% by 1975. 3. This fiscal situation presents serious obstacles to transport devel- opment since GOverLLment can nther o i to ivtn 1- 4-7o.-Jr easily increase the financing for recurrent costs (less than 2% of Government recur- rent expenditures were allocated to highway maintenance, CVAV 200 ml p.a., during 1972-75).1/ Quite apart from recurrent maintenance needs, external financial assistance wIll continue to be required for capital invest- ments for transport projects and development-related recurrent expenditures. While the maintenance of the transport infrastructure has suffered and the level of traffic demand is such that major extensions of the transport network can not be justified, the Government now recognises that maintenace of transport infrastructure should be a higher priority objective than the construction of new facilities. 4. Commercial exploitation of Chad's oil reserves, estimated at about 400-1,000 million barrels, might help to improve the country's fiscal and economic situation. An IDA study is in progress to evaluate a petroleum proj- ect in Chad aimed at producing about 1,500-2,000 barrels/day (75,000-100,000 tons/p.a.) of petroleum products by 1980 for local consumption. Production 1/ In West Africa, Government spending on highway maintenance has ranged from 1.2% (Mauritania) to 14.9% (Liberia) of current expenditures with an average of about 3.5%. 2- at this level compares with the country's petroleum imports in excess of 70,000 tons p.a., excluding unrecorded fuel purchases outside Chad. The proposed project would reduce the country's dependence on imported petroleum products, which comprised 13% of the total import bill of CFAF 23 billion in 1974 (compared to total exports of only CFAF 14.6 billion). Since the cost of locally produced petroleum is expected to be lower than the current import prices, the difference would constitute fiscal revenues that the Government could possibly use to finance recurrent cost expenditures, including an increase in Road Fund allncations for road maintenance. SctAr S a ugA.r l -nn 5. Land-locke C had has r.o diect or es cest h e n h internal transport network is at an early stage of development; hence, exports and imports must be transported across vast distances outside the country and over lengthy and arduous internal routes. 6. Three principal international transport routes provide Chad with access to the sea through Nigeria (via Maiduguri to Lagos); Cameroon (via Garoua and N'Gaoundere to Douala); and the Congo (via the Transequatorial route through Bangui and Brazzaville to Pointe Noire); other routes of lesser significance are Benoue River and Sudan routes. Except for petroleum products originating in Nigeria, the Cameroonian route now carries the bulk of Chad's imports and exports, thereby displacing the Transequatorial route. An even larger share of Chad's transit trade is expected to use the Cameroonian route, given continuing stable political relations between the two countries, and the proposed construction of a more direct and lower cost link (Moundou-Guidjiba road) to the Trans-Cameroon railway (Details in Annex I, paras. 3.04-3.05 and Annex II). 7. Road transport is the predominant mode; the road network consists of 4,560 km of national roads (only about 1,400 km are engineered, of which 253 km are paved), 2,710 km of prefectural roads, and about 24,000 km of unclassified tracks. The major portion of the network is concentrated in the southwest cotton-growing region, where the principal economic and population centers are located at an average distance of 2,000 km from the nearest ocean ports. The internal direct road links between N'Djamena and the southern agricultural region are cut during the rainy season (June-October) by flooding. Road conditions generally are poor since primary roads have been only minimally maintained and feeder roads are all but neglected due to lack of funds and trained workforce. In the 6-7 month dry season internal road transport is t road links making un the triangle between N'Djamena, Moundou, and Sarh (Annex I, paras. 3.06-3.12). 8. Domestic air service is provided by Air Tchad (Government-owned) between '"jamena and ten interior cities. N'jaen' intenatona -irport (2,800 m runway) handles commercial jets, but only 8 principal airports and - ~ - ~, , s ~¶ ~ -.~. ~ C1.._A'q A.A .4F4_lA, -,A 4ra*r,,_a 3 smaller fields are regularly served out of CLads -4 i el a Given Chad's extensive area, thinly scattered population and high road con- struction costs, air transport would appear to offer considerable potential for resolving many of the country's transport needs. Moreover, domestic air -3- links are, in many cases, the only viable for- of communication for the northern part of the country. Demand is, however, limited by the level of fares.and the conventional form of service presently provided, which mainly serves the bureaucrats and the elite (Annex I, paras. 3.18-3.24). 9. The waterways system comprises Lake Chad, and the Chari and Logone rivers. In the rainy season the Chari is the only practical means of surface access between N'Djamena and the South and is navigable from mid-August to mid-December. The Logone River is navigable from September to late October between N'Djamena and Moundou; commercial transport operations, however, are hampered by erratic river behavior. Barge transport between NODjamena and Lake Chad constitutes the most important traffic activity on the internal waterways system (Annex I, paras. 3.28-3.29). 10. Traffic on the classified road network (except for the paved road between Massaguet, N'Djamena and Guelengdeng) has averaged under 100 vpd and no significant increase is expected in the short to medium-term. The norm varies from 30-60 vpd on national roads and about 10 vpd on prefectural roads. Estimated traffic on the primary road network averaged 25-30 million veh-km p.a. while the commodity flow averaged 60-65 million ton-km p.a. during 1970-76. Total air freight declined from 29,000 t to 13,000 t (about 10% per annum) during 1970-75, as did domestic air freight (about 25% per annum) and exports by air transport. Domestic and international air passenger traffic remafned constant at about 80,000 passengers p.a.. Seasonal river and lake barge transport averaged 15-20,000 tons p.a., with river transport confined to a short period beginning in mid-August until mid-December. (Annex I, paras. 3.09, 3.19, and 3.29). 11. Chad's road transport industry is in the hands of a trucking syndi- cate, th , __cp 14atve des Transporteurs Tchadiens (CTT), to which the Govern- U - op au-k'--- -- -- ,-__ __ --_ ment has granted a de jure monopoly for external as well as domestic transport. The Government, however, maintains some control of th nutyby reseVying the right to nominate the Director General of CTT and regulating tariffs. The system works reasonabl l A b4 (for , 4n pvidein transport services to remote and commercially unprofitable areas), but does not appear to be responsive to the need to increase efficiency, and in fact contains elements that could make CTT a powerful but inflexible vested inter- est, at the expense of the national interests. Chad's road transport industry can be improved, even with the Government's limited resources, through sound planning, some reorganization of responsibilities, improved management train- ing and formulation of a consistent package of transport policies. Reducing transport costs would help to encourage growth in the productive sectors and notably enable export prices to become more competitive. More effective regulation of the industry through strengthening the Directorate of Transport (DT), would reduce the danger of nepotism, while at the same time making the allocation of domestic and international freight more impartial and balanced. The Government is concerned about the dangers inherent in the present situa- tion; studies by SEDES and ORGATEC have attempted to address these issues and a number of improvements are under consideration (Annex I, paras. 4.01-4.34). II. GOVERNMENT OBJECTIVES AND INVESTMENTS 12. Although Chad's development potential lies in agriculture, improve- ment of the transport infrastructure is one of the key pre-requisites to realize this potential. Reduction of transport costs on export routes, con- struction and improvement of feeder access roads, and increased efficiency of the transport industry could together serve as a catalyst.to increase agricul- tural production. The need for all-weather roads is particularly acute in south-west Chad where perennial flooding renders a large part of the road network impassable. Owing to sub-standard maintenance, road repairs are not made in time to permit unimpeded flow of agricultural traffic, particularly after the rainy season. 13. In its "Plan for Total Economic and Social Action" (June 22, 1977),. the Government emphasized its objectives of improving and maintaining the existing transport infrastructure to extend the life of past investments, and to reduce transport costs to a minimum. Other priority objectives include diversifying production in the rural sector and training at all levels, including training programs to improve road maintenance and management. A1nna with Chad's efforts to build road maintenance and rehabilitation on sound technical and financial basis, the Government also recognizes the possibilities of developing domestic air services. and river and lake trans- port. Institutional reform also figures in the Government's priority program. 14. Investments in the transport sector, averaged about CFAF 700 million \US$.6 million) p.a. dur 1- -7 Thes in -c o -fw a roads (N'Djamena-Guelengdeng and Moundou-Airport), repair of Ba-Illi bridge, resurfacing the runway at N3' Tj4amena Airot a opein thenaivto channel between Bol and Lake Chad (Annex I, para. 3.41). New road studies being planned or executed consist of an economic impact study of Djermay- Djimtilo road; engineering studies of paved roads to link N'Djamena with Maiduguri.(Nigeria), and with Kaele (Cameroon); and feasibility studies of Guelengdeng-Bongor and Baikoro-Doba roads. Projects in advanced stage of preparation are the International Development Association (IDA) s prUpUeu Third Highway Project including road maintenance, ferry boat construction, training for technical staff of the Directorate of Public Works (DPW), a rural roads study, and technical assistance for strengthening DPW and DT and improv- ing CTT's transport operations. The Fonds Europeen de Development (FED) will assist in a two-year rehabilitation and maintenance program for paved roads while United Nations Sahel Office (UNSO) has undertaken a seven-year improve- ment program for 470 km of roads in the Sahel zone (Annex IV). 15. The Government considers as essential elements, in Chad's short-term economic development program, the paving of road links between N'Djamena and Sarh via Bongor and Lai to provide an all-weather connection between N'Djamena and the agricultural south-west region, and constructing the Moundou-Guidjiba road to provide a shorter (by about 270 km), more reliable, and less expensive international route to the trans-Cameroon railway and the seaport of Douala. T- sees the country's nolitical integration being reinforced by all-weather - 5 - roads linking Abeche in the eastern part of the country with N'Djamena and SaC.h Rail extensions from the networks of Cameroon, Nigeria and Sudan qrp also seen as long-term objectives (Annex I, paras. 3.42-3.48, 3.51-3.55). 16. The Government's transport development objectives can be reviewed in the context of the following transport corridors, especially in terms of the most cost-effective mix of transport facilities needed to satisfy trans- port needs, including the optimal level of transport investments within the corridor, the staging of proposed investments, and the appropriate technology for construction and maintenance of the required facilities (Annex I, paras 3.31-3.34; Map III). (a) The Southern Corridor - between the Cameroon and CAE borders via Moundou and Sarh as the primary external trade route (Annex 1, paras. 3.38-3.43). (b) The Logone Corridor - linking N'Djamena.and the south; the most important political and administrative link between the capital and the more populated and productive areas in the south. How- ever, transport investments in this corridor are not economically viable due to low levels of traffic and high construction costs. Proposed investments in this corridor are beyond the Government's financial capacity and decisions on how to deal with long-term transport needs have been delayed. A UNDP study of the Logone River System is planned, which will cover power, transport, flood control and irrigation sub-sectors and should be given high priority in UNDP programming as it may lead to tangible solutions for the transport needs in this corridor. Alternatively, road alianments- snatiallv removed from the river. could be evaluated to determine the most cost-effective road link between N'Djamena and south-west Chade ( The, Sahel CrnridoAr~ - connecting N'Djamena to Abeche eventually extending to Sudan and possibly Niger, is essentially a desert route with limited traffic and vieed aS a long-term possib-iity Vehicles, with appropriate traction characteristics to ply on desert routes, combined withL- domestic av"ati W. on could offer an economically viable solution to the transport problems in the Sahel zone, even in the short-term. (d) The Lake Chad Corridor - a potential waterway for the transport needs of the Lake Chad area has limited usefulness at present but offers possibilities for transporting livestock and agricultural products from Lake Chad area to N'Djamena and Nigeria. 17. Apart from rail extensions, the proposed investments (para. 15) appropriately reflect the Government's long-term investment priorities for the transport sector. In the short to medium-term, a more modest investment pro- gram, covering road maintenance, the Moundou-Guidjiba road, rural feeder/ access roads, and improvements to the air and water transport infrastructure, appears more in line with the country's limited financial and manpower resources4 Studies and other forms of assistance will continue to be required to identify and evaluate needs and possibilities over the long-term while eventual estab- lishment of a medium-term development plan should help focus the Government's attention and available resources on feasible and realistic projects and give perspective to the time span required for their preparation and execution. III. MAJOR SECTOR ISSUES 18. The absence of a transport development plan, based on policies and objectives -commensurate with Chad's resource constraints and realistic project priorities, has seriously affected the economic efficiency of Chad's transport sector. The government's ability to address all of the transport sector prob- lems has been 14mitA by the multitu-ide of problems facing it simultaneously. Some of the more critical issues can be resolved in the short-term or are amenable to progressive resolution within the context of a long-term perspec- tive plan. The more immediate issues are: Economic Justification of Transport Investments 19. Owing to the narrow economic base and the stagnating economy, freight transport averaged about 175,000=225,000 tons p.a. during the period 1970-75; and forecasts for 1980 indicate only a 2-3% increase per annum. With con- struction costs for all-weather roads in Chad among the highest in West Africa, extensions or major improvements of the transport network cannot be economically justified. In view of these constraints, the optimal course of action relative to external transport needs would be for the Government to concentrate on one particular international route, bringing it to the highest standards traffic will justify, while maintaining some of the other important routes for flexibility. Domestic transport needs emerge as a number of arterial access routes, or corridors (para 16). Further study should seek to provide alternative transport solutions based on a combination of factors reflecting the level of traffic, construction difficulties and resources available, and provide the least-cost solution for the corridor in question. Overall maintenance and improvement of existing infrastructure should be accorded higher priority than construction of new roads. 20. Future investment proposals are likely to be economically viable only if developed within a regional context or as joint investments in con- junction with specific projects in the productive sectors. As even periodic maintenance (rearavelling) appears difficult to justify in economic terms for traffic levels under 45 vpd, future road investments would have to be evaluated in terms of induced economic effects, such as increased agricultural production and generation of demand for transport services. Apart from its insistence on the need for an a11-weather road between Bongor and Lai, the Government is cognizant of this situation and has started to give higher priority to tech- nically and finanally snilnd road maintenance practice. As most future road projects are expected to be externally financed, coordinating and redirecting external assistance isl to ectAblishl transport investment and mainte- nance priorities on a rational basis. This would require guidance and technical assistance at the levels of the Directorate of Planning (DP) And the Directorate of Transport (DT). Recurrent Expenditures for Road Maintenance 21. Insufficient funding for recurrent expenditures (resulting in paucity of operating funds for purchase of spare part and fuel) has been the maior factor constraining road maintenance (Annex I, paras. 3.13-3.16). Between 1972-76 the Government did not fully earmark fuel taxes for the Road Fund or Equipment Renewal Fund, as envisaged in the IDA's Highway Maintenance Project (Credit 125-CD), even though revenues from fuel taxes were almost double the actual expenditures on road maintenance. In 1976 and 1977, reve- nues totalling CFAF 440 and CFAF 413 million, were directed to the Road V undv and i,Pd for hfghwav maintenance and related activities; maintenance needs, however, were estimated at some CFAF 1,000 million. It is expected that the Goirnment will only be able to raise an estimated CFAF 450-500 million per year in fuel tax revenues over the next five years. Accordingly, .-he Government should Aetrmine the most effective maintenance program it can organize and finance on a regular basis from the available resources. This would involve use of maintenance standards thAt are compatible with the level of traffic, regravelling confined to roads carrying relatively high traffic (approximately 45 vpd and above) and, eventually, provisinn of finds for periodic renewal of maintenance equipment (Annex 1, para. 3.17). Regulation of the Road Transport Industry 22. The Government has pursued a road transport policy which has reduced effective competition within the Idustry aUU has cu.lminatedith W the legaliz- tion of CTT's monopolistic position. CTT controls freight allocation for both domestic and external transport, and serves as a lobby group for trucking interests. Staffed and run by members of the transport industry, CTT is an operationally effective entity with a large membership and individualized operations. The Director-General is nominated by the Government, which also regulates transport tariffs. (Details Annex I, paras. 4.04-4.06; 4.14-4.38). 23. Several possible steps to improve the efficiency of the road trans- port industry have been discussed with the Government stemming from a recent study of the structure and operation of the road transport industry commis- sioned by the Government. One possible alternative consists of transferring the freight allocation function from CTT to a new, independent (semi-public) Government agency--Bureau de Fret (BF)--with its director appointed by the Government. BF would identify and control freight allocation among CTT members, analyze transport demand and supply trends, monitor the freight shared between Chadian and foreign truckers in accordance with international agreements and regulate international and domestic freight above specific tonnage limits. In principle, the Government does not disagree with such an approach, but considers the proposed changes premature due to the inherent dangers in creating a new bureaucratic entity and the lack of experienced personnel needed to operate BF. 24. The Directorate of Transport, however, should be strengthened to enable it to supervise and regulate CTT and the industry generally, and to - 8 - assume the normal Government role in this area. This approach would also necessitate the provision of technical assistance to CTT to improve the efficiency of its transport operations and to provide managerial and opera- tional training to CTT members. DT will need to focus its efforts on study of the effects of import duty policies on the relative costs of vehicles and spare parts; on the factors likely to determine an appropriate fuel pricing policy in the transport sector; periodic review of transport tariffs; the assessment of the effective capacity available for transport of Chadian goods; the relative importance of transport costs and other distribution margins in domestic prices of imported goods; and the prospects for inter-city passenger transport. Develonment of Domestic Air Transport 25. Dev1onping air transport may well hold the answer to some of the country's transport and communications needs. It may not only be a more cost effective means of transport in some regions of the country but the only feasible alternative with an acceptable rate of return. Preliminary studies carried out b Trr AD 71 A TCA have led to favorAh1e con1siions conrrning the potential for air transport development in Chad. A comprehensive air transport study, possibly financed by UJNDP or under a bilareral assistance grant, is justified in order to establish the comparative costs of air' versus road transport and determine such relevant facts as choice of aircraft, method of operational flight scheduling, level of current and potential air transport demand, and prospects of developing cargo traffic (Annex I, paras. 3.25-3.27). Transport Planning and Coordination; Training Needs 26. The basic components of a hierarchical transport planning16 proce exist in Chad's present administrative structure. The Directorate of Planning (DP), the highest level of planning, determines inter-sectoral investment priorities and economic evaluation of projects for external financing. DT serves as the liaison between operating units (the Directorate of Civil Aviation, DPW and ASECNA) and DP. The planning functions of DPW's Bureau of Studies and Hydraulics could include data collection, analysis of sectoral trends, technical surveys, and project design and evaluation, if sufficient funds and equipment, plus technical assistance, were made available. (Annex I, para. 3.35-3.37). Future needs include a clearer definition of the role and functions of each organization, the establishment and implementation of an appropriate work program, and energetic efforts to step up recruitment and training of a permanent cadre of Chadian staff. In particular, DPW's capacity to supervise and implement road works is hampered by inexperienced and untrained staff. ORT's training program (under the IDA Second Highway Projiet Credit 490-CD) produced creditable results despite difficulties in obtaining equipment, supplies and candidates; future programs, however, should include training in highway maintenance, labor management and prolect supervi= sion (Annex I, paras. 3.38-3.40). Assistance to Domestic Construction Industry 27. The domestic construction industry is represented by about 15 contractors who have some building construction experience, ut they Ma - 9 - constrained by the lack of technical and managerial skills. The few local firms with the requisite experience to undertake civil works are foreign-owned and expensive. The experience with domestic contractors under the IDA Highway Maintenance Project (Credit 125-CD) was discouraging and led to considerable delays in construction of workshops. The contractors are unable to prepare reasonable bids, maintain accounts and efficiently execute contracts, and are financially hampered by the unavailability of credit. Commercial banks are hesitant to lend to contractors, who tend to divert credit funds to other Actiti;pg furthPrmore, loan recoverv is almost impossible due to political pressures and outside influence. As a first step the Government should qualify contractors who are suitable for fin"aiAl And tprhniral assistance.. Establishing a Government-owned equipment leasing pool should be considered in thLe longterm as 4t WOUld -edUce the financial risks of contractors and mnke small contracts more attractive. The possibility of a domestic construction .LnUdustry study under UJNDP financing should be explored; depending on the outcome of such a study, external financing and technical assistance could be provided to domestic contractors, as part of a future LI.LgLLWy poJJ.ct= (n 1, paras. 5.02-5.03). Use of Labor-Based Technologies 28. Labor intensive construction methods are particularly appealing in the Chadian context given widespread underemployment and disparity in urban and rural incomes. The application of such intermediate technologies to road construction and maintenance, however, should take into account Chad's sparsely distributed population, the need for a large cadre of supervisory staff experienced in labor management, high minimum wage rates (CFAF 48/hr or US$1.60 a day), scarcity of construction materials and water within reasonable haul distance (i.e. under 5 km), the intrinsic low unit productivity of labor-based methods, and some indispensable mechanical processes, such as grading and compaction (Annex I, paras. 5.04-5.06). IV. SECTOR STRATEGY 29. There have been tangible gains in Chad's transport sector in the decade, 1968-77. Emphasis on maintenance of existing infrastructure, as opposed to new road construction, is beginning to yield results. The major shortcoming, however, has been the tendency to set unrealistically high maintenance targets and the neglect of institutions which could help in ontimallv utilizing the country's limited resources (Annex IV, paras. 7-9). Instead of emphasizing preinvestment studies (as in the two previous IDA high- way prnects) which have not generated economically justified projects, a more practical approach would involve the development of a planning mechanism lead- ing, in the first instance- to identifiraion And nrAnaration of a realistic road maintenance program tailored to Chad's needs and resources; second, to identifc.L.ati.on an preparatiOn of a limidnme ofntaeiclly imortant high priority transport projects; and third, to the formulation of consistent transport policies. - 10 - 30. Formulating a comrnT hPenive transport sector strategy has been complicated by haphazard and often conflicting lending policies of donor agenCies. TAing Aeiaons hnU not always been based on economic criteria, thus presenting the possibility of misallocation of scarce resources. In view of14C4h-aA lmt ieMet absorptive capacity it- would be advantageous to U. %JLLCLU LL ' - - -- plan a five-year highway sector investment and maintenance program which could be sponsored by the Bank, to be financed Jointly by interested donors. Guiding Principles 31. The following principles sould guide the fomUlation f transport sector objectives and programs to achieve these objectives: (i) the scale of future projects should be related to manpower constraints, given the lack of experienced senior level Chadian staff, the shortage of adequately trained lower level operational personnel and difficulties in recruiting dedicated and experienced expatriate technical assistance; (ii) maintenance and improvement of existing transport infra- structure should continue to be the quintessential sector priority; training efforts at all levels must be sustained; (iii) institution-building coupled with systematic planning may yield significantly greater benefits in the long-run than projects designed primarily to achieve physical targets; basic engineering planning for identification of maintenance needs must be emphasized; and (iv) the Justification of future transport projects should depend on the extent they.support activities in the agriculture and livestock sectors. Sector Objectives 32. Wihi h afnrementinned constraints, external donors should con- sider the following objectives in continuing to assist the development of Chad's transport sector: k(i establish and develop a finanil f s n o externally financed) and technically competent highway maintenance organization; (ii) determine the most effective maintenance program that can be undertaken within available domestic resources; (iii) formulate projects for external financing, including re- lated maintenance operations such as periodic maintenance, equipment renewal, and road improvement programs, which cannot be financed by Chad; - 11 - LV) Uvelp locall capability for a continuing transport Plan ning process; (v) improve the role and structure of CTT's administration and .L U U L" 4-4L.. ... -n operation o'f the road transport industry and identify tan ing needs in management and operations for individual transporters; (vi) explore alternative means of transportation - appropriate vehicles, air transport - to satisfy transport needs and reduce the pressure to build uneconomic roads; (vii) determine the optimal labor-equipment mix for road con- struction and maintenance; and (viii) develop the construction industry. Implementation Program 33. Future external assistance for Chad's transport sector should attempt to realize these objectives; to this end the scale of projects and possibilities of cofinancing should be discussed among external financing agencies (see para 30). In the short-term perspective (1978-82), other than the nronosed IDA Third Highway Project, priority projects suitable for Bank Group participation would be: (i) the Moundou-Guidjiba road project; (ii) a rur al roads project; and (iii) a second-phase highway maintenance project. 34. An air transport project could be considered as a contingent addi- tion to this priority list, together with an urban project which, should evaluate urban transportation needs in N'Djamena and, possibly serve as a nucleus for establisuhing i and int4-_it1bu taanortAtion- Suitable agricultural projects could also include related feeder road components. An industrial finance credit, such as a Bank Group IDO (Industrial Develop- ment and Finance) operation could serve as a useful vehicle to provide finan- cial assistance to the domestic construction industry, inter-City bus opera- tions and ferryboat and barge construction. 35. The proposed IDA Third Highway Project (Annex I, para 3.15) includes road maintenance, local construction of ferry boats, resolution of various transport sector issues and a rural roads study. The design of the project takes into consideration the recommendations of OED's Project Perform- ance Audit for the (First) Highway Maintenance Project (Report No. 1883) which pointed to the need for provision of increased local funds for maintenance, improvement of equipment utilization, expansion of training for maintenance personnel and development of domestic capability to plan and execute road maintenance works. The Third Highway Project aims to: - 12 - ensure financing for road maintenance bl Fund in a commercial banking institution so that fuel taxes are fully earmarked for maintenance of roads and ferries; ()establish an optimI a1LLUrU 4aintenanc LU size, standards, technology and frequency of operations); this would involve use of maintenance standards compatible with the level of traffic, reduction in the scope of regravelling operations to about 300-400 km during the project period; and introduction of labor-based road maintenance by "cantonniers" (mobile road gangs of 25 men), each carrying out light routine maintenance on about 150-200 km road sections. (iii) extend the training program for DPW's staff: emphasizing field. training; selecting Chadians for overseas training who will eventualy fill management or senior technical positions; re- viewing on-the-job training, salary incentives and recruitment policies; (iv) to reorganize and strengthen the Road Planning and Design Office within DPW, and establish a work program which includes preparation of a classified road inventory and appropriate design standards, periodic traffic counts, and other routine planning activities; (v) strenRthen the Directorate of Transport to enable it to plan effectively, develop a rational transport policy, and carry out the normal functions of Government in regulating the road transport industry; and (vi) improve the operations of the road transport industry by pro- Viding technnical assistnce* to CTT- 36. The Moundo_-ud4 b rod-rJect (Ann. I aa.34-.7 JL, V. --- dii a ro d . I!; - .- .. - , would include the construction of both the Chadian (about 100 km) and Came- roonian (about 300 km) roa sections. Serving as the primry link between Chad and the ocean ports, the project appears a priori to be economically justified. The technical and economic studies supporting the economic justification, however, date back to 1974. External donor commitment to this project should be made contingent upon a study to update and revise the existing detailed engineering and economic reports. 37. A possible rural roads project (Annex V) would be defined by a rural roads study, included as part of the proposed IDA Third Highway Project (para. 35). The study will explore several critical issues: (a) stream crossings requiring construction of simple drainage structures; (b) organiza- tional constraints (COTONTCHAD's role precludes expansion of its feeder road improvement and maintenance responsibilities while DPW cannot at this stage expand its operations to administer a rural road construction program); - 13 - (c) maintenance after project completion; (d) security conditions in the Sahel zone (proposed location of some elements of the project); and (e) identifica- tion of construction materials and suitability of intermediate technologies for road construction and maintenance. 38. A second phase hiRhwav maintenance proiect should ideally be designed as a jointly-financed project including maintenance, equipment renewal, asistance ro domstie rnnsQtriiron indiitry qnd qtrPnathenina of transnort planning to complete the objectives and to consolidate the progress made under the IDA Third Highway Project. 39. In the meanwhile, the Government wieh terhnical And financial assis- tance provided by interested donors should support: (i) the establishment and operation of the Road Planning and Design Office -w.LthLLi.L AL ; (ii strengthening of DT and mpLUmLnLaLoL1 UL in-huU transport .sector studies to be undertaken by DT as part of the IDA Third Highway Project; (iii) improvement of CTT's transport operations and identification of training needs for transport industry personnel; (iv) preparation of a transport development plan; (v) implementation of studies for preparation of Moundou-Guidjiba road project, a possible rural roads project and other road reconstruction and improvement projects (such as the Baikoro- Doba road project); (vi) formulation and implementation of domestic air transport and construction industry studies; and (vii) preparation of the second phase of the maintenance program initiated under the IDA Third Highway Project. - 14 - ANNEX 1 Page 1 CHAD TRANSPORT SECTOR MEMORANDUM ANNEX I - BACKGROUND AND DESCRIPTION OF THE TRANSPORT SECTOR I. Introduction 1.01 Landlocked in the heart of north-central Africa, Chad occupies an area of 1 , n 1 km wi th a population of anot 4 nillion . Suqrrninded by Libya, Sudan, the Central African Empire, Cameroon, Nigeria and Niger, the country has no direct or easy access to the sea; its principal ecnomic. centers are located about 2,000 km from the nearest ocean ports. The vast northern part of the country is a roclKy wast-4la c t f extensions of the Sahara and Libyan deserts. Southward the land becomes a 500 km-wide sub-arid transition- zone (the Sahel) of thornbush savannaand semi- desert. The southern 10% of the country (the subtropical true savanna zone), drained by the Chari-Logone riveL systemUs, contains most of the productive arable land. 1.02 About 85% of the population lives in rural areas with agriculture and animal husbandry being the primary occupations. Nearly 50% of the rural population comprises semi-nomadic livestock herders who exploit the Sahelian savanna land. The other half lives in the relatively densely-settled cotton zone (south of the River Chari), where millet, sorghum, groundnuts, and, more recently, rice are grown as food crops and cotton as the primary cash crop. II. The Economy 2.01 Agriculture, in the broad sense of crop, livestock, and fish production represents over 50% of the Gross Domestic Product (GDP), provides livelihood for about 80% of the population, and accounts for nearly all exports. Over 90% of the estimated 1.5 million labor force is engaged in agriculture. Cotton, the principal export commodity, provides over two-thirds of the export earnings. The manufacturing sector is small contributing about 8% to GDP. It consists primarily of processing industries, related to ginned cotton, meat, sugar, textiles, and beverages (mainly beer). 2.02 With a 197 nPer canita GNP of US$120. Chad is one of the poorest countries of the world and is included among the 25 least-developed member Co--ria of the Unitad Nations. uring the nAst ten years, the nace of development has been slow due to the country's formidable growth problems, (literacy rate of 7%, largely unAkl4l 1ed labnr7 fre,-= :3d za3 snAl 1 rnomic base), which have been further exacerbated by persistent internal political difLfLculties and, in the early 190's by 7Lsythe worst drought1*- i 50 T - 15 - ANNEX 1 Page 2 is estimated that the GDP (US$439 mio14n in 1Q7) 4nraae in real terms by 0.5 to 1.0 per annum during 1967-75. With annual population growth estimated at .1%, GDP per capita decreased by about 1.6 to I.1% per year. Although supporting data are not available, income disparities were relatively wide and appear to have increased betWeen the SMall --ba setradthe rualaras The country's poverty and limited capacity to mobilize savings have made the economy heavily dependent on external aiud; between 1967-72, Lt GUr equiVLLnt of total aid, including grants and loans, averaged 12% while during 1973-75, it reached 17%. Grants alone equalled tax revenue in 1973 and 1975 and exceeded it by 24% in 1974. Practically all public investments were financed by external aid. 2.03 Since the late 19600s three major events affected economic growth and financial performance: the internal security situation, the Sahelian drought, and the deterioration in the terms of trade. Beginning in 1968, the rebellion, (arising from a livestock taxation issue), made large areas insecure, severing traditional-cattle routes. The impact of the internal security problems was compounded by the worst drought in 50 years, occuring during three of the five years from 1969 to 1973. Water levels in the rivers reached an all-time low and Lake Chad shrank to one-third its normal area. Livestock losses totaled about 1.5 million head of cattle. Similarly, food production (millet and sorghum) fell to 70% of pre-drought levels in 1972 and to about 60% in 1973. As normal rainfall returned, food production recovered to pre-drought levels in 1974-75 and cotton production increased reaching an all-time record harvest in 1975/76 (174,062 tons), making Chad the third largest cotton producer in Africa. Despite the agricultural sector's improve- ments during 1974/75, Chad's terms of trade declined by 11% between 1972 and 1975, with rising inflation of import prices and declining cotton export prices. Fiscal Performance 2.04 Until 1968 the budget was in balance and, considering the country's developmental constraints, fiscal performance could be considered satisfactory. After 1968, expenditures increased more rapidly than revenues, as military spending intensfied, accounting for almost ehirdA o the c e bug The drought, resulting in a decrease in revenues, simultaneously caused an Increase in the demand for Government services. Consequently, *he verall budget deficit (excluding externally-financed capital expenditures) rose from CrA 24 0 billion (15.5% of reveneus) iL 1970 to ELCX tL V.L.L.LU (_J3J.5O/% of revenues) in 1974 but dropped to CFAF 2.1 billion (13.5% of revenue) in 1975 when the Government made special efforts to COlUCt tax arrears and reduce spending. Despite external budget subsidies, payment arrears accumulated to CFAF 11.6 billion (US$51 million) by early 1976, of which 80% was owed to domestic suppliers and 20% to foreign creditors. The increase in budgetary expenditures has been exclusively in recurrent expenditures while Government- financed investment has decreased from about CFAF 1.0 billion in 1972 to - 16 - ANNEX 1 Page 3 virtually zero at present. The operation and maintenance of Government services have been progressively curtailed, with no risea in pirrent Cpnding. Righway maintenance operations have been affected by this situation; fiscal allocations for recurrent highway maintena expe-ditures remaied unchnged between 1973-1975 at about CFAF 200 million per annum; averaging less than 2% of the Government's current expendit: ures. ThIs situation has adversely ~.JL L.L~ ~JV~AUU~LJ ~ LLLu A.LJ erLJu .L A. LLLi. .L. LU .UL L u AU~~ . affected the continued serviceability of the highway network. Development Prospects 2.05 Chad's development potential lies primarily in agriculure and livestock although long-term growth is not likely to be rapid even assuming a normal rainfall pattern and political stability. Reducing transport costs and improving rural roads, however, could serve as an impetus to increased agricultural production. The commercial exploitation of oil discovered in the north-western and southern parts of the country .offers prospects that might alter the country's economic situation (para. 4 and Annex 1, para. 3.54). 2.06 The existing fiscal situation presents a serious obstacle to trans- port development as the Government can neither contribute to the financing of capital investments nor finance all recurrent costs of on-going projects; hence, external financial assistance will continue to be required to cover a significant proportion of total project costs, including development-related recurrent expenditures. III. The Transport Sector 3.01 Chad's landlocked location, heavy seasonal rains in the agricul- turally productive areas from July to October, vast internal distances, and sparse population in most of its fourteen prefectures, faces one of the most difficult transportation problems in Africa. Both internal connections and routes to the outside world are at an early stage of development and qihiprt tn delas and interrint-ions bu prnniAl flnods Cha'c transport infrastructure consists of 7,272 km of classified roads 1/ and 24,000 km of unclasifiaed roads and tracks, Lake Chad and the Chari-Logone river system, and an air transport network of 44 airfields and airstrips, including the i nternational airport at N'njamena. RoadA transport is, by far, the pIredoA minant mode. 1/ The road system has not been functionally classified. The classified network of 7,272 km represents roads that have been maintained from time to time by DPW and prefectural authorities. - 17 - ANNEX I Page 4 Importance of the Transport Sector in the Economy 3.02 Despite the complexity of the transportation problems in Chad, their solution could help to spur economic growth. The incidence of high transport costs not only has a debilitating effect on the competitiveness of Chadian exports but also results in augmented domestic prices of imported goods. Surface transport costs from Chad to ocean ports average about CFAF 34,000 (US$139) per ton. For cotton exports, transport costs are 15-20% of the CIF Europe price of cotton. With reductions in production costs reaching their limit, the competitiveness of Chadian cotton exports in the world market could be maintained onlv by a reduction in transport costs. A similar situation holds for the export of gum-arabic by air. According to Societe Nationale de CommPri,q1i7tinn du Tchad (9ONACOT)_ the aovernment agency entrusted with the export of this commodity, the cost of collection and local surface transport amounts to over 25% of the sale price in Europe. These P3rmnlp shnw that possibilities for expanding the production of export commodities will remain constrained as long as transport cos- continue tn for a relatively large share of the final market price. 3.03 Relative to imports, the combined effect of transport costs, distri- Dution margins, and import duties and taxes on consumer prices L qU.LL strk- ing, although transport costs account for only 15-20% of the final consumer prices. A ton of cement in N'Djamena costs the consumer about.CFAF 55,000 compared to CFAF 10,000 at the port of Douala (Cameroon). By contrast, the cost of cement is about CFAF 29,000 per ton in Niamey (Niger) compared to a cost of CFAF 12,500 at the port of Cotonou (Benin). I/ The effect of trans- port and distribution costs on the price of petroleum products is equally significant. For example, diesel oil in Chad is priced at CFAF 82/litre. Other than the cost of transport from Nigeria estimated at CFAF 29/litre (35%), duties and taxes account for CFAF 16/litre (20%), while retailing and distribution costs amount to about CFAF 12/litre (15%) of the price at the pump. Even in the case of commodities where transport and distribution costs are subsidized, the consumer prices in N'Djamena are about 50% higher than CIF prices, Douala. International Transport Routes 3.04 Chad is served by three principal external surface transport corridors to the sea, namely: (a) the Nigerian Route via Maiduguri to Lagos (Apapa) or Port Harcourt (1695 and 2040 km respectively); (b) the Cameroonian Route via Garoua. or N'Gaoundere to Douala (1717 m); and (c) the Transequatorial Route via Bangui and Brazzaville to Pointe Noire (2450 km). 1/ All in 1974 prices. - 18 - ANNEX I Page 5 Two other routes of lower significance in terms of volume of trade carried are the Benoue River and the Sudan routes. The physical and service characteristi-s of these routes are presented in Table I and Map 1, and discussed in detail in Annex 2. Except for petroleum nroducts. which originate in Nigeria, the bulk of Chad's imports and exports are now carried via the Cameroonian route. Transit trade diverted substanHA11v from the Tranneirvial Route to the Cameroonian route following the establishment of a railhead at N'Gaoundere and the improvement of the road link between N'Gaoundere and N'Dnamena. In 1970, the Transequatorial Route carried 63% of the export tonnage transported on the principal external routes, WLLile the Cameroonian route accounted for about 31%. By 1974, the respective shares carried by the two routes had reversed. Relative to import tonnage, the portion carried by the Cameroonian route increased from 9 to 29% between 1970-74 (Table 2). With respect to total tonnage (imports and exports) transported on the principal external routes, the Cameroonian share increased from 16% in 1970 to 35% in 1974, whereas, the tonnage accounted by the Transequatorial Route dropped from 47% to 15% over the same period. The Nigerian and Benoue River routes carried about 45-50% of the total tonnage during this period. Since 1974, additional traffic diverted to the Cameroonian route, which is estimated to have carried 50% of total export/import tonnage in 1977 (Table 3). Other factors contributing to the diversion of traffic from the Transequatorial to the Cameroonian route were the dissolution of ATEC (Agence Transequatoriale des Communications) in 1969, and physical improvement of the road link between Sarh and the Cameroonian border via Moundou during 1965-70. Assuming satisfactory political relations continue between Chad and Cameroon, it is estimated that the Cameroonian route will attract an even larger share of Chad's transit trade considering that: (i) Chad and Cameroon are in the same monetary zone (CFAF), and have similar traffic regulations, including a transit trade agreement which requires the sharing of freight transported between N'Goundere and N'Djamena; (ii) the construction of Moundou-Guidjiba-N'Gaoundere road would permit a reliable and 266 km shorter transport link between Southern Chad and the railhead at N'Gaoundere; (iii) the Cameroonian route compared to the Nigerian route has a lower risk of pilferage and damage, fewer delays due to port congestion and a larger overland transport capacity; (-iv)r the Transequao rial, rote, alt shough pric ompetiti 4 - nave s-th the Cameroonian route for transport of bulk commodities (Luel, cement, and fertilizer), is less efficient because of capacity constraints on the Congo railway and river barges, poor condition of roads 4n AV during rainy season when river transport is most practicable, and navi- gation on River Oubangui confined to six months. - 19 - ANNEX 1 Page 6 3.05 In terms of future development of alternative international transport corridors, the Sudan route, especially for products originating in the Sahel, needs to be evaluated for possible exploitation. If livestock development takes place in the Sahel zone as planned, the possibility of using the rail- head at Nyala (570 kii from Abeche) fnr trAnnnrt nf livpqtnc-k, meat nripts, and gum arabiz to Port Sudan (2623 km from Abeche) for the potential Middle East market deserves serious conSiderat-ion. The Sudan railway network improvements under the Fourth Railway Project (Loan 1467T-SU/Credit 727-SU, 197 gives further credence to this proposal. Even for other exports originating in South Chad, such as rice, the Sudan route would be shorter (combined land and sea distance) for products destined to the Middle East. Ro.ad Transport A. The Road Network 3.06 The road network consists of about 7,270 km of classified roads (comprising 4,560 km of national roads, of which only 253 km are paved; and 2,710 km of prefectural roads), and about 24,000 km of unclassified tracks (Tables 4 and 5). The road system has not been functionally classified; the current classification represents 7,270 km of roads that have been maintained from time to time by DPW and prefectural authorities. Of these, only about 1,128 km are all-weather engineered roads; most of the remaining roads (the majority of which are no more than tracks) are passable only during 7-8 months of the dry season. The distribution of the classified road network is about 1.82 km/1,000 population, compared to 2.49 in Mali, and 5.92 in CAE. The road density is about 6 km/1,000 sq. km. in Chad compared to 11.0 in Mali, and 17.0 in CAE. The major portion of the classified roads is located in the cotton zone, which covers about 10% of the area of the country. The sparsely-popu- lated northern part of the country is served mainly by desert tracks. Major road building activity started in Chad in 1964 with the FED-financed construc- tion of the southern east-west trunk road from Sarh to Pala. This was followed by the paving of N'Djamena-Guelengdeng and N'Djamena-Massaguet roads which were completed in 1971. There have been no further extensions of the road infrastructure since 1972, except for paving the 11 km Moundou Airport road. Inadequate maintenance of the road network has impared its serviceability; there is a substantial backlog of periodic maintenance while existing mainte- nAnmre Activitv is cnnfined ton urgent repqirs and one grading per year over approximately 1800 km with over 90% of the feeder roads in the Cotton Zone, and most of tho roAa 4n t1he ahel zne-nt evean minimally maintained. During the rainy season from June to October, the direct links between MIf,im'a" n"fA 1thn an"t-hnv." "nTt. nf 1-h= -n,l #17 ala f-11t. h-ty' a-anciu f1i tniiincy N'DJamen an the soth_ prt of the country are cut byetnieJloig In the dry season, the internal road transport is concentrated on the road links making up the triangle N'Djamena-tMounAou Ig (600 km); Mn -S (3 km), and Sarh-N'Djamena (560 km). 3.07 Since the most commercially active and productive area is flooded auring the rainy season, construction of aLl-weaLter roaU impies La.iLi of the road bed above the flood level and providing expensive drainage struc- tures. The resulting construction costs ($250,000-$400,000 per km), however, e~L'414O ZI . Page 7 are not commensurate with the volume of traffic. A major element that increases the cost of road projects in Chad is the scarcity of good road construction material such as lateritic gravels. A generalized distribution of soils in Chad is shown in Map II. The existing deposits of laterite are distributed south of a line running accross the country from Fianga to Doba to Sarh from about 100N to 90N. North of this line, maintenance of roads becomes an extremely difficult task. Soils tend to have either too much sand or too much clay. The traffic levels on the road network are such that higher types of soil improvement through cement or lime stabilization cannot be justified. The Government should undertake a program of soil investigation using the resources available within the Ministry of Public Works (e.g. the Directorate of Geology and Mines) and Ecole Nationale des Travaux Publics (ENTP). The Bank should consider the financing of technical assistance to complement Chadian personnel in implementing such a study under the proposed Rural Roads Project. 3.08 There are few major bridge structures in Chad. Ferry-boats are used for crossing the principal rivers. All the existing ferry-boats (over 30 years old) are in poor condition, with frequent breakdowns causing extended transport delays. The meandering physiography of rivers coupled with substantial annual and seasonal variations in the river regime precludes the construction of permanent landings for the ferry boat. AA with other transnort investments, the cost of permanent structures cannot be economically justified given the low level of traffic activity. There isa need to identify hridge structures (e.g. Bailley bridges) that could be compatible, in terms of cost and re4uired cLLO t. Utio L. skLL with-L the conditions in Cha-d. Although the necessary- bridge technology is available, it has not been sufficiently studied to -z- 1 L 41z.." t to .,. the ` A4__... __ A . _ T1-.4 4-, ', ascertain its applicabi.litL t the kCadian% LL W cnios.1 Thsi-- rata deserves consideration under a future project in Chad. The findings of such a study would have bearing on riVer rossing in other estA Arican countries as well, where low traffic activity does not allow investment in expensive bridge structures. B. Traffic 3.09 It is estimated that the traffic flow on the network averaged about 25-30 million veh-km p.a., and the tonnage moved amounted to about 70-75 million ton-km p.a. during the period 1970-76. Except for the paved roads between Massaguet, N'Djamena and Guelendeng and the earth road between Chagoua and Linia, the classified network carries under 100 vehicles per day (mainly trucks); the norm varies from 30-60 vehicles per day on the most trafficked national roads to under 10 vehicles per day on prefectural roads. A summary of the 1976-77 traffic census, including a comparison with 1963 and 1970 counts, are given in Table 5. In the short-run perspective, traffic is not expected to increase substantially above the existing levels. - 21 - ANNEX I Page 8 C. Vehicle Fleet 3.10 Government statiAtics (Table 6) indinArp an avArA nni innlre of 6% in cumulative vehicle fleet registrations during 1970-76. Independent checks with nther Qources, howeve r, hoW Qriousa discr ies b the Government estimates and the actual size of the vehicle fleet. This could be partially7 attriuted to the fact that vehicles retired from servic,e are not accounted for in the Government statistics, which represent cumulative totals. The operational vehicle fl1eet is estiae at 50-6 q0% ofte Government figures consisting of approximately 4,000-5,000 passenger vehicles, 2,500-3,500 pick- up trucks, and 1,5LL0-V2 LLUhker . 1I U. Fue.l UUnumPLU 3.11 No well-defined trends for fuel consumption can be formulated for Chad during the period 1968-76; for all practical purposes, fuel consump- tion appears to have remained constant during this period (Table 8). This apparent paradox, in the light of an estimated 3-6% annual growth in the vehicle fleet and a 3% annual increase in total tonnage (exports and imports) transported by road during the period 1968-74, may be explained in terms of increasing unrecorded fuel purchases in Nigeria where gasoline and diesel oil prices are about 30% of the.prices in Chad. This situation has two obvious implications: (i) Road Fund revenues from fuel taxes are not expected to increase substantially above the present level in the short-run; and (ii) an increase in fuel taxes to generate additional revenues for the Road Fund may result in an even higher level of irregular fuel imports, and possibly a decrease in the quantity of legally purchased fuel. Statistics on diesel fuel consumption, however, appear to be unreliable, as estimated consumption for road transport (Table 8) is considerably lower than that estimated from the magnitude of diesel fuel taxes (Table 9). E. Road User Charges 3.12 Annual Government revenues from road users averaged about CFAF 1.1 billion during the period 1970-74 (accounting for about 8% of total Government receints) with about 45% derived from fuel taxes; 45% from cittom duties, and other taxes levied on import of vehicles, spare parts and lubri- cants, and 10% from registrAtin, license nnA vehicle insnpetion fees (Table 9). Annual highway expenditures (capital and recurrent) during this period, incl-ding externAl nasitance for t nprhase of equipment, nde technical studies, averaged CFAF 1.0 billion. As such, road user charges were commensurate with the Government's financiall outlay in the road rA n oL rt sector. Fuel taxes, meant to be earmarked for the Road Fund, averaged about CFF450 million per year during 170-7. 1/ About 40% of the heavy trucks have a payload capacity of 5-15 t. The remaining vehicles are semi-trailers and truck-trailer units. - 22 - ANNEX I Page 9 F. Road Maintenance 3.13 The output of road maintenance declined from a peak of 2,800 km in 1972 to about 1,800 km in 1976. The primary constraint limiting road maintenance was the declining recurrent budget allocations (in real terms), which resulted in paucity of operating funds and immobilization of maintenance equipment due to lack of spare parts and fuel. This situation has been a major reason for the low morale and productivity of DPW personnel. 3.14 Under IDA's Highway Maintenance Project (Credit 125-CD), it was envisaged that the Government would finance all the recurrent expenditures of the five-year maintenance program from 1968-72, as well as the total cost of eauipment renewal in the last two years of the program. To this effect, two special funds -- the Road fund and the Equipment Renewal Fund -- were instituted with the provision that revenues from fuel taxes would be ear- marked for these special funds. The Credit Agreement also provided for neriodic increases in fuel taxes to meet the increasing demand for recurrent funds during project implementation. Although fuel taxes were increased as agreed- the GnvPrnmPnt did not earmark all fuel taxes to the two special funds. Actual budgetary allocations (in CFAF millions) to the two special funds from 1970-77 aro son as follows: Equipment Renewal Viundi/ Road Fund/Fonds Routier (510-1) Fonds de Renouvellement (510-4) BalanCe fromG Cedit 1/ DebI,t 2/ 1 alance from Credi 1/ TDebit 2/ Year Previous Year Previous Year 1971 78.3 223.0 179.3 183.1 12.10 12.60 1972 122.0 224.0 216.8 182.7 60.00 59.70 1973 129.2 225.0 196.2 183.0 2.10 - 1974 158.1 220.1 200.2 185.1 0.08 - 1975 177.1 221.2 243.0 185.2 - - 1976 156.1 441.6 480.2 185.2 - - 1977 117.5 413.2 565.6 185.2 - - 1978 -34.9 - - 185.2 - - Source: Balance General de Comptes du Tresor Public: 1971-1977; Gestion du Tresor et de la Comptabilite Publique, Chad. 1/ Revenues. 2/ Payments. 3.15 Road maintenance needs established by DPW, budgetary allocations from the Road Fund for road maintenance, and fuel tax receipts (CFAF millions) from 1970-77, are compared below: - 23 - ANNEX I Page 10 1970 1971 1972 1973 1974 1975 1976 1977 Perceived Maintenance Needs 1/ 234 310 443 616 858 900 1,000 2/ 1000 2/ Fuel Tax Receipts 474 537 412 413 489 450 2/ 442 413 Of which Allocated to Road Fund 176 179 217 196 200 221 442 413 I Thse are needs as perceived by DP n are o they include amortization of road maintenance equipment, periodic maintenance and a higher level of routine maintenance than justif.ied by the level of traffic activity. 2I Ehstimate. These data show that budgetary allocations for road maintenance fell woefully short of perceived maintenance needs and accounted for about 50% of fuel tax revenue receipts, which have also fallen short of the level of maintenance needs since 1972. It must be noted, however, that Chad's budgetary constraints were extremely severe during 1972-73, a period marked by a severe drought that put a heavy strain on the country's limited resources. During 1974-75, Chad's impaired fiscal position was dealt a further blow by rampant inflation. Since 1976, however, the Government has earmarked all fuel tax revenues to the Road Fund and used these funds for highway maintenance and related activities. 3.16 To ensure adequate financing of recurrent maintenance costs, the Government agreed to establish a separate,Road Fund account in the Central Bank under IDA's Secdnd Highway Project. The Government has recently taken the necessary steps to separate the Road Fund from the Treasury, as a prere- quisite for IDA's approval of the proposed Third Highway Project. 3.17 It is estimated that the Government will only be able to raise about CFAF 450-500 p.a. million in fuel tax revenues per year for the Road Fund dur- ing the next five years. With the proposed establishment of the Road Fund outside the Treasury, all the fuel taxes would be earmarked for the Road Fund, and used for maintenace of roads and ferries. An increase in fuel taxes, although feasible, may not yield additional revenues. Fuel consump- tion in Chad has virtually remained stagnant during 1968-76. This phenomenon is to some extent explained in terms of irregular fuel imports from Nigeria where the price of fuel is about 30% of that in Chad. One source estimates contraband fuel imports to account for about 20% of fuel consumption in Chad. As such, an increase in fuel taxes could depress the demand for fuel pur- chased in Chad, and the expected increase in fuel tax receipts might not result. However. further study of this issue is needed before ny f"nal - 24 - ANNEX 1 Page 11 conclusions can bke reached. The- Governent'sdecson to transfer the Road Fund from the Treasury to a commercial bank, would help to ensure that road user LU~ revenues derived C U~ rom 4P* A A Fn, n userrevnue dervedfro fuel taxes are earmarked for the Road Fud _An committed solely for road maintenance. Any diversion of other road user charges to the Road Fund or an increase in fuel taxes to generate additional revenues would be ill-advised at the present time in view of the Government's constrained budgetary situation and the uncertainty of whether the required revenues would materialize even if fuel taxes were increased. In view of these constraints, the first phase of a long-term maintenance program under the proposed IDA Third Highway Project has been designed so fhat the mainten- ance of earth and gravel roads can be accommodated within the financial resources currently available to the Government. This assumes that external financing would be available for provision of equipment and periodic mainten- ance (i.e. regravelling). The Government should periodically review the structure of road user charges and identification of financial resources for road maintenance. Air Transport A. The Air Transport System 3.18 Chad possesses 44 airfields and airstrips. By agreement with the Government, the Agence pour la Securite de la Navigation Aerienne en Afrique et a Madagascar (ASECNA) is responsible for the management and operation of 16 (see Table 10) of these airfields, although only eight principal airport and three smaller fields have been regularly operated. The other 28 airstrips are under the jurisdiction of the Directorate of Civil Aviation (DCA). The internatinnal airport in N'Djamena (with a 2,800 m runway) can handle commer- cial jets, while the others can accomodate propeller aircraft. Chad is a member of Air Afriqip a multi-national state-owned airline. The Government- run airline, Air Tchad, provides regular air service between N'Djamena and ten int4-err ie C4f-4. th respcnt to internatinAl traffic, N'Dlamena is served by Air Afrique, Aeroflot, Cameroon Airlines, Interflug, Sudan Airways, and TT'r A U 4. ZI UT. 3.19 Total freight traffic (arriving and departing) d e f all-time high of 29,000 tons in 1970 to 12,762 tons in 1976, corresponding to an annual rate of decline of 13% (Table 11). The loss in domestic air freight during this period was even more marked, at an average rate of about 25% per annum. About 50% of the arriving freight originated UVeLsea while the other 50% came from African countries including transit-shipments of perishable goods and fragile cargo from Douala. The departing freight in- cluded meat (about 3,000 tons), salted fish (about 3,000 tons), gum arabic (1,000 tons, of which about 800 tons originated in Sudan), resins, skins, hides, flowers (hibiscus), and diamonds. It is important to note that meat exports dropped from 9,000 tons in 1971 to about 3,500 tons in 1976. The decline in Chadian meat exports can be attributed to: (i) the increase in - 25 - ANNEX 1 rage 12 international fuel prices which caused a significant rise in air freight tariffs (making transport of meat exports financially unattractive); and (ii) purchase of cattle on hoof by Nigerians at a higher price than that offered by the Chadian meat processing plants. The domestic and international air passenger traffic remained fairly constant during 1970-76 averaging about 80,000 passengers per year (Table 12). The commercial aircraft arrivals and departures declined from about 9,000 operations in 1970, to about 6,038 operations in 1976, reflecting the decline in air freight traffic and the introduction of larger capacity aircraft. 3.20 Despite Chad's potential ability to expand exports of meat, fish and horticulture products, it is unlikely that a significant increase in air freight would occur during the next five years, unless efforts are made to exploit the Middle-East market for Chadian meat and fish exports. Substantial increases in air passenger traffic are also unlikely; the best that can be hoped is that present levels are sustained in the future. 3.21 The domestic air traffic is marked by pronounced seasonal variations (Exhibit II), with most traffic concentrated between June and November. The peaking of domestic air traffic during August and September can be explained in tArns of the nnnr Pnnditinn nf rnndq trinirin tha rainy sason (almTn m- passable in many cases from June through September), when air transport serves as the only means of access to many population centers C6 Aircraft Fleet 3.2The entire fleet of1 A Ir Tehad, the national air line, consists J* .d.LII .U± L A. L.AL L L~L U, LL1 ALd .hUL L L± .L.L.L ~ J of two DC-3's, one DC-4, and a light aircraft (Beechcraft Baron be-58). So far, Air Tchad has managed to provide reasonably efficient air passenger and freight services using its fleet of largely obsolete aircraft. With-in- creased downtime due to higher maintenance requirements, Air Tchad may be compelled to curtail its vital services, especially to the northern part of the country and during the rainy season. Hence, there is a clear need for replacement of the aircraft fleet; the justification of such investment however needs to be evaluated in the light of a broader air transportation study. D. Fuel Consumption 3.23 Aviation fuel consumption in 1975 amounted to 23 million liters compared to 36.5 million liters in 1970 but increased to 36 million liters in 1976 (Table 8). With the exception of 1973, when the drought relief air lift contributed to a significant increase, total fuel consumption gradually declined from 1970 to 1975 (4% per annum) in consonance with the 9% average annual decrease in aircraft operations. E. Airport User Charges and Expenditures 3.24 Revenues, inclusive of airport user charges, and expenditures re- sulting from ASECNA's operations in Chad from 1970-76 are presented in Table 13. Airport user taxes, subject to approval by ASECNA, are established so - 26 - ANNEX 1 Page 13 that revenues can cover operating costs. The principal revenue source is the landing tax (the highest among ASECNA's member countries), accounting for 60-70% of total revenues. In 1975, the revenue receipts were CFAF 335 million compared to expenditures of CFAF 346 million. The deficit is covered by: (i) contributions to ASECNA by member states and France for operational expenses; and (ii) subsidies for capital expenditures provided by the French and Chad Ger.mhnts. - Frenrh GnvPrnmPnt Contribuitions averaged about CFAF 15.6 million per year during 1970-75. F. Development of Domestic Air Transport 3.25 Given Chad's vast size and sparsely distributed population (2-3 persons sq. km. in the Sahel zone an A 15-20 persons/sq. km in the arable areas of the South), the development of air transport may well serve as an answer to the country's transport needs. During the period -, he h bn new investments in the road infrastructure primarily as a result of the high cost of road construction (estimated at US$250,000-500,000 per kIn) and the low level of traffic activity. Under these circumstances it is quite conceivable that air transport may be a more cost-effective means of transport. A trans- port study 1/ in the Llanos region of Columbia indicated that road investments, for the initial 80 km, required at least 30,000 to 40,000 tons of initial traffic per year in order to be "economic". As the distance increased, a road required at least 7,000 more tons of initial volume per year for every 16 km increase in distance and hence, a road 300 km in length required at least 130-150,000 tons per year. This study demonstrated that at relatively low traffic flows (under 100,000 tons per year) and long distances (over 200 km), air transport was the economically preferred mode at an economic rate of return of about 12%. For a higher rate of return, say 15%, the road, being a capital intensive technology 2/, became less and less appealing. The current situation in Chad, as reflected in high road construction costs, low traffic volumes, and average distance between major urban centers in excess of 200 km, might well lead to similar conclusions. 3.26 Assuming that the economic justification of a large-scale program can be evaluated, the next issue would be the economic assessment of upgrad- ing airstrips to all-weather standards with appropriate navigational aids. Benefits would result from savings in aircraft operating costs and airstrip maintenance costs. The elimination of useless trips in inclement weather (haze or rain), would produce savings in operating costs. At present, with- it- navigational aids, aircraft must fly over airfields to determine landing conditions and the trip is frequently wasted. The suggested improvements would also permit the use of larger aircraft, resulting in additional savings. I/ "Role of Air Transportation in Sparsely Developed Areas" US Department of Transportation, 1973,pp. 4-131. I1 -u - - -.- A - - ¶- 4 ,4.1, 4-4fi4.1 4"r= f-m ,n1 2./ In the SenSC, LLat gLULL taso requies --high i low operating costs whereas air transport requires relatively low initial investment but higher operating costs. - 27 - ANNEX 1 Page 14 In addition, there are social benefits accompanying the introduction of a year-round, rapid, and extensive air transport system in Chad. These could manifiest themselves in extension of air-borne medical services to rural areas, expeditious agriculture and livestock extension services and, not the least, effective and speedy relief to areas subjected to natural disasters such as a prolonged drought. 3.27 An initial step toward improving air transport infrastructure has been taken by providing funds for minor rehabilitation of airstrips (Table 18) under the Sahelian Zone Project (IDA Credit 739-CD). This, however, is not enough. Many questions, such as potential demand for air transport and type of aircraft and airport infrastructure best suited to Chad's needs have not. been studied; there is a growing need to address these questions. Not only do long distances, bad roads, and continuously increasing costs of new road construction indicate that air travel may be the cheapest means of transport but it is also the only available means of reaching many sections of the country. This situation is likelv to nrevail aven if construction of some all-weather roads could be economically justified. Inland River and Lake Transport A. Transport Characteristics 3.28 The inland waterways system of Chad comprises Lake Chad, and the Chari and Logone river systems. During the rainy season, the Chari provides the only means of surface access between N'Djamena and the south. Although river transport is feasible on the Chari and Logone, the commercial exploita- tion of this transport mode is hampered by erratic river behavior. The Chari is navigable between N'Djamena and Sarh (850 km) from mid-August to mid- December, and the Logone between N'Djamena and Moundou (1,000 km) from September to late October. River Chari from NDjamena to Lake Chad is navigable throughout the year, but most transport takes place between November and April. 3.29 The total tonnage moved on the rivers and the lake by barge trans- port is about 15-20,000 tons per year. The traffic,is seasonal in nature. The available barge tonnage owned by three private companies is about 1,840 tons, although only 50-60% of the available capacity is actually utilized. Information on user charges and fuel consumption is not available. B. Development of River and Lake Transport 3.30 Prospects of river transport development are limited because of river regime constraints. The Chari, even during the rainy season, can only accomodate barges with a draft of less than 1.20 m. Dredging is ineffective because of shifting sand bars and frequent changes in the river regime. Besides these problems, navigation on the Logone becomes quite treacherous - 28 - ANNEX 1 Page 15 during the rainy season. In comparison, barge transport on Lake Chad holds more favorable prospects. An area that requires further investigation is the feasibility of barge transport of livestock from Chad (range developments north of Lake Chad) to Nigeria. This mode of livestock transport could replace the current practice of exporting cattle on hoof. Other than project invest- ments needed to facilitate the transport of cattle on Lake Chad, the only foreseeable project investment is the opening of navigation channels, and construction of finger-type jetties at N'Djamena, Sarh, Moundou, Djimtilo, Bagasola and Bol to improve loading and unloading.-operations. Transport Development Prospects 3.31 Considering Chad's uncertain development nrospects, and a limited growth potential for transport demand, investment opportunities in the trans- port sector are becoming increasingly limited. Continued Bank Groun involve- ment in the transport sector would require a radically different approach to project identification. The initial step in the proposed approach would be the! identification of transport development corridors, and then, within each corridor the evaluation of the most cost-effective mix of transport facilities needed to satisfy transport needs. This evaluation would addi- tionally incorporate the Optimal level or investemet within the corridor, the staging of proposed investments, and the appropriate tech- nology for construction and maintenance of the required facilities. 3.32 The Government's transport development objectives can be roughly translated into consideration of the following transport development corri- dors (see Map III): (i) The Southern Corridor - the primary external trade route connecting Moundou and Sarh, with extensions to the Cameroonian and CAE borders; (ii) The Logone Corridor - linking N'Djamena with the southern corridor; (iii) The Sahel Corridor - connecting N'Djamena to Abeche with ex- tensions to Sudan and possibly Niger; and (iv) The Lake Chad Corridor - linking N'Djamena with Lake Chad. 3.33 Except for the Southern Corridor (para. 3.46-3.48), there is little substantial information on the transport needs and the appropriate technology to meet these reauirements in the proposed corridors. The present Government proposals for transport investments in the Logone Corridor are not economi- cally vi1O nid We11 out-side the Government's financial capacity. UNDP has drawn up detailed terms of reference for a planning study of the Logone Basin, covering power, transport, flood control, and irrigation subsectors. This project should be given high priority in UNDP programming, as it may lead to tangible solutions to the transport problems 4n t-he T.oonp hain. Tt would be beneficial if Government support could be obtained for similar studies in - 29 - ANNEX I Page 16 the other corridors. It is quite possible that improved airstrips serving as nuclei for a network of feeder roads may be the most appropriate means of satisfying transport demand in the Sahel. Substituting lake and river ports for airstrips, a similar solution could be a viable alternative for the Lake Chad area. Similarly, for land transport, vehicles with appropriate traction characteristics for travel on desert tracks may offset the need for expensive investments in road infrastructure. 3.34 Other than the need for developing an adequate capacity for mainte- nance of transport facilities, the following investment proposals within the context of the proposed transport corridors deserve consideration: (i) Moundou-Guidliba road proiect - needs to be evaluated further as it would complete the primary transport infrastructure require- mpnts in thp Southern Corridor h nrrniding an all-wathe, l o-wr cost and direct (266 km shorter than the existing route) link between south of Chad and the trans-Cameroon railway; (4i) Rural road projects - follow-up projects similar in content to the project presently identified by the Bank's Resident Mission in WJ est Afr , AbA u whink appropriate transport modes in the proposed transport corridors; (iii) Aviation and lake transport projects - for the Sahel and Lake Chad areas; the justification of these projects, including auxiliary feeder road components, could be viewed in terms of providing the least-cost transport solution for the Sahel zone, as well as benefits deriving from its effect on restoring the productive capacity of the Sahel zone, and alleviating the effects of the Great Drought. Aviation projects in countries (Sudan, Bolivia) with transport problems similar to those in Chad have been considered for Bank Group assistance in recent years. Organizational Structure 3.35 The primary responsibility for transport planning and coordination rests with the Ministry of Planning, Economy and Transport (MOPET). The Ministry's Directorate of Planning and Development (DPD) determines transport investment priorities, commissions technical and preinvestment studies and coordinates all external assistance. Vehicle fleet statistics are collected and tabulated by the "Statistics" section of DPD. The Bureau d'Etude of the Directorate of Economic Affairs (also in MOPET) is charged with the study and preparation of transport tariffs. The Ministry's Directorate of Transport (DT), is responsible for supervision and coordination of road, water, air and urban transport modes, establishment of transport policy, regulation of road and water transport industries, and formulation of international transport agreements. In addition, DT advises on matters relating to transport tariffs and transport infrastructure investments. The organizational structure of MOPET is shown in Organigramme I. The Ministry of Finance establishes road user taxes, approves budget requests, and proposals for tariff modification. The Directorate of Public Works (DPW), within the Ministry of Civil Works, -30 - ANNEX I Page 17 Mines and Geology (MOCMG) is responsible for execution and maintenance of publ_ic works and technical evaluation of projeCItS (see Organigrame IIT). DPW's Service des Etudes et de 1'Hydraulique (SEH) is responsible for basic road planning, data collection, (sucL as traffic counts, road inVentories, etc.), design, and technical evaluation and supervision of road projects. The "Auto" section of the Service of. Mines performs functions pertainingtodie and vehicle licensing, and vehicle inspection. The enforcement of traffic regulations falls under the jurisdiction of the Gendaa. T D t of Civil Aviation (DCA), within MOCMG, deals with administrative matters pertaining to air transport. ASECNA, the French-manaed LegLLa ciV.L. aviation agency, comprising 13 member countries 1/ with headquarters in Dakar, is responsible for the management of principal airports and the air navigation system. 3.36 The existing administrative structure of keeping operational transport departments (DPW, Civil Aviation) .under one Ministry (MuPmG) has considerable merit. Similarly, macro-transportation planning should continue to remain in MOPET so that an inter-sectoral interface in planning activities is maintained. In fact, the present organization is perfectly suited to a hierarchical transport planning process moving from physical planning at the level of operational departments to policy planning at the level of DT and, finally, strategic planning by DPD. 3.37 The basic elements for establishing such a hierarchical transport planning process are present in the Government's existing organization. SEH, combined with the planning activities of ASECNA and DCA, form the lowest echelon .of planning. The planning functions that could be performed at this level are data collection and technical surveys, analysis of sectoral trends, and the technical design and evaluation of projects. SEH has been hampered from undertaking road planning activities as it lacks the basic equipment and funds to function effectively. With a minimal level of technical asssitance, and provision of funds, the existing Chadian staff could perform these func- tions adequately. The Directorate of Transport serves as the next higher level in the transport planning hierarchy, and basically performs a liason function between the operating units (DPW, DCA, ASECNA, etc.), and the Direc- torate of Planning. In addition, DT serves as a regulatory agency for the transport industry, and is concerned with sector-wide issues and priorities. The next level of transport planning occurs in the Directorate of Planning where inrer- and intra-Aetnral investment nriorities are determined. This involves detailed economic evaluation of projects and preparation of proposals for external financing. At prsaent, the is litt-le nn a rennt cmmitment on the part of Government to encourage effective transport planning and management; shortage of qIUalified Chadand-s, ineffectie tilization of expatriate tehnical assistance, and insufficient financial resources are primary factors contribu- ting to this situation. Consequently, the Government has been unable to formulate a balanced and rational transport development plan. Most planning activity has centered on developing a "s-LoppiJng A. L.t f projects for external financing. The Government is in the process of formulating a development plan - 31 - ANNEX I Page 18 for the period 1978-81, but it appears that only generalized guidelines and objectives, together with a list of projects for external Financing, will emerge from this exercise (Annex III). Staffing and Training 3.38 The Government agencies responsible for the transport sector are headed by Chadians, who are assisted by technical experts provided under the FAC techncial assistance programs. These experts, however, are not optimally utilized and their time is mainly taken up by administrative.chores. Tech- nical studies are generally contracted to consulting firms resulting in long lead times, and expensive project preparation. Technical staff of DCA con- sists of one civil aviation engineer who heads the Air Transport Section of the Directorate, while the position of the director remains vacant. DT is also understaffed; as a result, its activities have been confined to immediate problems concerning the road transport industry and negotiations pertaining to international transport agreements. The operational staff of ASECNA in Chad consists of 38 expatriates in senior technical and administrative positions, headed by a Chadian Director. 3.39 Senior and middle-level management of DPW (covering roads, buildings, and other civil works) is provided by foreign and locally trained Chadian engi- neers, who are assisted by 14 expatriate technical experts provided by FAC. The capacity of DPW to supervise and implement road works is hampered by the lark of qualIified nd AnPrincAd staff at all levels. The shortage of trained personnel is particularly acute at senior management and technical levels---- (eprine engineers)-and at the sub-professionallel(ecais operators and work supervisors). Middle level technicians are trained at 'local tech-nica +nstiUti4ons and could be induced to serve in DPW if salaries were made sufficiently attractive. The ORT training program for DPW field staff under the second HighWay P roJe=-Ct (IfTTA Crei490CD hasfTN 1 pr oduced creditable results despite difficulties in obtaining equipment, supplies and trainees. ORT had achieved the fLlowing training targets as of March 1978: Staff Category TrULUiK OUJtiL±Ves Trained Under Tai Foremen 12-16 8 Diesel mechanics 12-16 10 Helpers/greasers 24-32 14 9 Equipment operators 100-120 30 2 Equipment overseers 5-6 - 17 Training counterparts 4-8 - 4 Training of mechanics for 3 other Govt. agencies - 28 1/ - Total 157-198 90 35 1/ 11 for POCLAIN, 20 for SODELAC, 14 for OMVSD, 2 for SERARHY, and 8 for Surete Nationale. Source: ORT, Sixieme Rapport Trimestriel, December 1977. - 32 - ANNEX I Page 19 3.40 So far, training programs have aimed at developing local capacity to maintain machines rather than roads. It is imperative that future training programs should include elements of highway maintenance practice and labor management. The training program for DPW sub-professional staff should be extended under the IDA proposed Third Highway Project with significantly greater emphasis placed on field training. It is further recommended that a selected number of Chadians should be sent abroad for engineering and management train- ing. This is the only means of eventually filling senior management or tech- nical positions by Chadians, since on-the-job training of ex-isting senior staff hv Penrriare tphnical assistance has not produced the technical professional capable of shouldering management responsibilities. Although diffcult at present Wecas f tight fiscal constraints, the Government should attempt to attract Chadians to serve in the public sector through salary incentives, pletion of training programs and higher technical studies. IDA's proposed Third Uigwa Projec has bee desi_ U_ A_gned to Utili 1ze caSual _ labor for routine maintenance operations, with provisions for appropriate training for the chiefs ofl the routine maintenance sectors included in the project. Profile of Past Investments-in the-Transport Sector 1LJ.LL Ui r L £LV LW UL -1 -IL LLU_UL. _ _ L1JL 3.41 During the period 1971-76, virtually all of the investments in the transport sector were financed with foreign funds. After 1971, annual capital expenditure (comprising external assistance for technical studies, road con- struction, and purchase of equipment) on highways averaged about CFAF 550 mil- lion (US$2.24 million). Major investments in the highway sector since 1-970 comprise the construction of paved roads between Massaguet and Guelengdeng via N-Djamena, the Moundou Airport road, and repair of Ba-111i bridge. During 1970-76, the principal investment in airports consisted of resurfacing the runway at N'Djamena Airport under joint assistance from FAG and ASECNA. With respect to inland waterways transport, a USAID grant of CFAF 19 million (US$97,000) was used in 1976 to reopen the navigable channel of about 30 km and 12 m wide between Bo.l and Lake Chad. This channel makes Bol accessible to barge traffic from November to February. The Project was implemented by the Society for the Development of the Lake (SODELAC). Details of expenditures in the transport sector are presented in Tables 14 and 15. The relatively low invesment levels in transport reflect the shift of investment resources from the transport sector to the agricultural sector during the last decade, in line with the Government's policy to emphasize agricultural development. Transport and communications accounted for only 6% of public sector invest- ments in 1975, compared to 44% in 1968 (Table 16). Government's Sector Obiectives and Investment Proaram 3.42 In the absence of a development plan, the Government by a press communique dated May 3, 1976, elaborated the objectives and priorities of its development poliCV. Highlighting social and economic reform- thp communinu put special emphasis on the improvement and maintenance of the existing transport infrastriict-uirp with the echirtiu of roeduingy t costs and ANNEX 1 Page 20 extending the life of past investments. In the rural sector, a diversified production profile, balanced cotton production and a higher utilization of local resources were considered as priority objectives. The press release envisaged that a 4-year development plan (1978-1982) integrating all the social and economic sectors would be prepared by the end of 1977.. The "Plan for Total Economic and Social Action" adopted by the Supreme Military Council on June 22, 1977, aims to integrate all economic sectors and to plan inter- relationships between these sectors and organize the national economy by concerted action throughout the country. This Plan places special emphasis on the development of the road system to facilitate free and unrestricted flow of goods, people and information within Chad itself and also between Chad and the neighboring countries. An outline of Government's priorities in the transport sector and proposed transport infrastructure investments is given in Annex III. The Government considers road infrastructure to be its highest priority within-the transport sector. The salient features of its transport investment Driorities are discussed in the following sections. A. Road Trannort 3.43 On the hsis nf a 5-year planning horizon, the Government considers paved road links between (a) N'Djamena and Sarh via Bongor and Lai (national) and (b) Moundou and Gijiba in Cameroon (finternational) as essential pre- requisites for the economic development of the country, and (c) an all-weather roa~- - .4 polit4 A - -Ia Lad .LL.Ling Aueche with N'Djamena as a necessary aeement in the Political integration of the country. *The Government has requested FED to coordinate external assistance for the following priority projects, for which final engineering has been already completed: (i) The Bongor-Lai Road 3.44 This project comprises the construction of a 198 km paved road section ensuring an all-weather, permanent connection between N-Djamena and Moundou via Bongor, Lai and Doba. The project is estimated to cost about CFAF 15.5 billion, to which price and physical contingencies are estimated to add CFAF 4.5 billion (totalling CFAF 20 billion or about US$80 million; FED has reserved CFAF 2.0 billion for this project). The Bongor-Lai road is inundated by the floodwaters of the Logone River to a depth of 0.5-1.0 m and traffic is completely severed for 5-6 months each year. The existing road is difficult to maintain at an acceptable standard, as investments in upgrading and regravelling would be washed away.during the rainy season. The road provides the main link between the pastoral north and the more productive south; the present alignment and absence of adequate drainage structures impose restrictions on transport, caused by frequent loading and unloading. seasonal use, and long detours through Cameroon during the rainy season. A new road would remove these problems and provide better integration of the country by establishing a permanent liaison between the national capital of N'Djamena and the commercial and administrative centers of Bongor, Lai, Moundou, Doba and Sarh in the south. - 34 - ANNEX 1 Page 21 3.45 On purely economic grounds, the project is not viable given the CostSi (T001 0 n/rm) and low louol of traffic (under 50 vpd). There is relatively little economic interdependence between the N'Djamena area and the southeast. T he Cotton grow in te southeast i- exp orted diirptly to ports in the Congo and Cameroon, hence the proposed road is not essential for the evacuation of the principal cash crop. Imports consumed in the southeast arrive in part from Nigeria via N'Djamena but only because wholesalers are presently located there. Except for petroleum products originating in Nigeria, the flow of imports could easily be diverted to the same route used by cotton exports. Only modest amounts of domestically produced food crops move between these two areas. In addition to petroleum products, the principal products transported between the North and South are manufactured goods imported through N'Djamena, and beer and soft drinks from the brewery in Moundou and the bottled beverage plant in Sahr, amounting to about 25,000 t/yr. The Government's estimate of a 10% economic return on the proposed investment appears to be overly optimistic. Even if the road were economically justi- fied, routine maintenance amounting to CFAF 23.7 million p.a. and periodic maintenance costing CFAF 712.8 million every six years would be outside the Government's budgetary resources, even assuming modest increases in the Road Fund during the next 5-10 years. Maintenance costs could be even higher since the Logone River perenniably inundates its banks and could conceivably cause erosion of the road embarkment. This road, however, does have considerable political and administrative benefits, and some economic merit if considered within the context of a regional multi-sector development project for the Logone basin. A change in alignment further away from the Logone River could result in significant construction cost savings but this proposal is, at pre- sent, unacceptable to the Government. A possible alternative (especially in terms of reducing construction costs), could be the improvement of the exist- ing road between Guelengdeng and Ba-Illi (113 km) and a new north-south road between Ba-Illi and Lai (about 130 km) passing through the Setegui-Deressia (ii) Mounou-uiib Roand 3.6 This project consiStS of the cnstrucition of a 304 km paved road linking Moundou in Chad with N'Gaoundere in Cameroon via Guidjiba; 116 km w .oul b lo A ted'nsie Chad. The purpose of the proJect is to provide a ]U.LU LJ~ J_ocattu .LLL~' ' u J reliable, all-weather international road link to the Trans-Cameroon railway and to the seaport of Douala. The project cost is estimated at CFAF 14o0 billion together with CFAF 4.7 billion for cost and price contingencies (CFAF 18.7 billion or about US$76 million; FED has reserved CFAF 2.8 billion for this project). The construction of this international link would reduce the distance between Moundou and N'Goundere by about 266 km and link Chad's cotton belt directly with the railhead at N'Goundere. -35 - AXTM'WV 1 Page 22 37 TL mA.i oj Lvn selecting a specific tULLU eApULL LUUL should be its efficiency in expediting cotton exports along with its compati- bility with import traffic requirements. As cotton producing areas are also centers of import consumption the route selected for special development should have adequate traffic in both directions to justify its improvement. A 1969 network analysis I/ showed that Moundou-Guidjiba route met these require- ments and would serve as the optimal route for about 70-80% of cotton exports as well as the least-cost route for a majority of imports destined for the southwest, assuming 85% of imports destined for Moundou and 50% of imports en route to Sarh would pass through Moundou. Preliminary estimates of economic feasiblity showed that this route would carry a base level traffic of about 80-100,000 t/yr especially in view of the significant diversion of traffic from the Transequatorial to the Cameroonian route during the past few years. The primary benefits would be the reduction in distances between Moundou and N'Goundere by 266 km and savings in voc and road maintenance.expenditures. As the northern portions of the Cameroonian road and rail network are all underutilized marginal benefits would also accrue to the Cameroonian transport network. The Cameroon segment of the road, skirting two national parks in Cameroon, could help in developing the tourist potential of the region. A priori, the Moundou-Guidjiba road project appears to be an attractive proposal. Its economic justifiction, however, needs to be evaluated further as existing technical and economic studies date back to 1979. Although the Govern- ment's report indicates an 18% economic return, preliminary calculations show a rate of return, based on used cost savings, in the range of 10-12%. partly explainable by substantial increases in construction costs (about 50% since 1974) and a stagnant transnrt demand. 3.48 Tn addition tn these major road nrnir- tHep nvernment is negotiat- ing with the People's Republic of China to provide financial assistance for the construction of the Chari River Bridge at N'Djaena. Recently, Cameroon, Chad, and China signed an outline agreement for the construction of the Chari River Bridge. 3.49 A nime of new road studies are either in the planning or execution stage, namely: (i) the economic impact study of the area of influence of Djermaya-Djimtilo road, including detailed engineering of the road, to be financed by the African Development Bank (ADB), under a USAID grant for preinvestment studies. The feasibility study of the Djermaya-Djimtilo road, carried out under the IDA Highway Maintenance and Engineering Project (Credit 125-CD) would be used as the basis for this study; 1/ "The Transport Sector in Chad", Vol IV Report AW-13, 11/14/69. - 36 - ANNEX 1 Page 23 (ii) final engineering studies for the improvement and paving of two roads in Cameroon namely: (a) Kousseri-Fotokol (102 km) to provide an all-weather link between N'Djamena and the Nigerian road network; (b) Magada-Bongor (151 km) to connect Bongor with the trans-Cameroonian route via Yagoua, Kalfou, and Kaele (Cameroon). including a two-lane bridge across the Logone River between Yagoua and Bongor; both these studies will be financed by the Lake Chad Basin Commi-qninn irndpr a USS1 million orant from USAID: (iii) feasibility and enaineering siidy of the 38 km Guelengdeng- Bongor road under assistance to be provided by the Federal Re=pUb.lic of Germany (FRG;Ian f, V St~ud~y yOi Jj 70 6 (i)enginern std f 79 km Maikoro-Doba road under FAC assistance. The existing Moundou-Doba section is a par- tially impove I link of the all-weather M_oundou-Sarh road. 3.50 Of the road feasibility studies carried out under the IDA Second lighway Project (Credit 0-CD-JJJ, the Beinamar-KrimU adLU laga.L DL.Uid pLJeLL were found to be economically unjustified even considering that the Moundou- Guidjiba road would be in service by 1981. With respect to Gounou-Gaya Kelo road, it was shown that the road could only be justified economically if treated within the context of an integrated road-soap factory-oil extraction plant project, with the industrial components of the project located at Gounou-Gaya. So far the Government has not been able to obtain external financing for the soap factory-extraction plant complex. In addition, it is not certain if the Government is committed to the location of the industrial components of the integrated project at Gounou-Gaya. Hence, it would be premature to proceed with the final engineering of this road under IDA Credit 490-CD. The Gounou-Gaya Kelo road is estimated to cost CFAF 13.5 million per km (US$55,000) in 1976 prices. 3.51 Projects that are in advanced stages of preparation are the following: (i) the first phase of an 8-year road maintenance program covering a network of about 5,000 km of gravel and earth roads (Map IV) to be financed under the proposed IDA Third Highway Project, including in addition- local constrution of fArrv-honts a comprehensive training program for DPW's technical staff; a feeder roads study; and technical assistance for: (a) strengthening the organi7at-ina1 capaity of DPW and DT; and (b) improvement of CTT's transport operations. - 37 - ANNEX 1 Page 24 The proposed Third Highway Project is expected to be co-financed by ADF, IDA and USAID. The capital cost of the project is esti- mated at about US$22.0 million, while Government-financed recur- rent costs, during the first phase of the maintenance program are estimated at US$8.0 million. (ii) a two-year program (mid 1985-mid 1980), at an estimated cost of US$3.2 million (CFAF 750 million), for the rehabilitation and maintenance of 240 km of paved roads, to be financed by FED; (iii) improvement and maintenance of road links between Ngoura and Ati (253 km), Massakory-Moussoro (135 km), Ati-Ifenat (63 km) and Dankala-Yao (39 km), under UNSO Road Improvement and Maintenance Program, at an estimated cost of UJS$14_4 million- The first phase of the program costing a total US$4.4 million is exnected to heome onerational in 1978. R. Airports 3.52 A program for the improvement of air navigation and landing facili- ties for the domestic airports, estimated at CFAF 2 billion in 1974 prices, has been proposed by AScNrWA, alhog the sourc of fianin-asno -be CL .~.ArIWA .L.LLVUr2.L L OU L. has.LLCL1.L% U1 IU uu identified (Table 17). Under the IDA Sahelian Zone Project (Credit 739CD), a ' 1f ' -1 1 _ 01 r%f% I'--- - beenI to suuproject costing CFAF 20.J MiL.LiU (UOOJ,0U) has been included co provide minor rehabilitation, (essentially resurfacing of the airstrips at Abeche, Am Timan, Ati, Faya, Mao anad.Mongo all of which are administrative centers of the Sahelian prefectures (Table 18). The subproject cost estimates make pro- visions for labor and materials only, but assurances were provided at project appraisal that equipment would be provided by ASECNA and DPW., It is quite likely that road maintenance equipment would be used for the rehabilitation of these airstrips. The Government has had under consideration for over a decade the relocation of the international airport at NODjamena at an estimated cost of CFAF 20-30 billion (US$80-120 million). In view of the decline in interna- tional and domestic air traffic (passenger and freight) since 1970, it is unlikely that this project could be economically justified. C. River and Lake Transport 3.53 The possibility of transporting cattle across Lake Chad from the area around Bol to Nigeria is being considered in the context of IDA's live- stock projects. Barge transport could 'also facilitate the evacuation of agricultural products from the Lake Chad polders to N'Djamena. The Government does not have any plans for improvement of barge transport on Chari and Logone rivers, south of N'Djamena. D. Pipeline 3.54 In the context of transporting crude from the Sedigi field (near Rig Rig) to N'DJamena, the Government plans to constructa350 km pipeline - 38 - ANNEX I Page 25 (4" diameter) at an estimated cost in the range of US$14-20 million. Trans- nrt of rriuie from the Sedigi field by tankers to N'Diamena is also being considered as an alternative to the pipeline. E. Railways 3.55 To complete the picture of the Government's transport perspectives, mention should bwe made of proj4ect-ideas i nvol Ving possible rail roa d exten- sions from: (a) N'Gaoundere to Moundou with onward links to Doba aftd Sarh. keALUUL±ULL UL. LLIC t1C&LUtLVVL"±4LL rail. 1-LWVLZ.J, CLUVUL. .JVV NUL, (etesi NODthemameonan a i netwrk),aou 300ikm DJ riaiauguci LU n' Djamua (Extension of heLL IgLaL.Ln network), 250 km; (c) Nyala to Abeche (Extension of the Sudanese rail network), 600 km. Prior to the independence of Chad, a rail link between Bangui and Sarh (635 km) was also envisaged. IV. The Transport Industry Road Transport Industry. 4.01 The road transport industry is of vital importance to Chad's econ- omy due to the country's dependence on road transport for both internal and external transport activities. Beginning with the Bank Group's first trans- port sector survey of Chad in 1969, considerable importance has been attached to this industry, and in particular, the efficiency and competitiveness of the trucking subsector. The Second Highway Project (IDA Credit 490-CD) provided for a diagnostic study of the road transport industry aimed at improving the operational and economic efficiency of road transport operations. The study was carried out by the consultants SEDES and completed in February 1977. A. Road TrAnsnort Demand 4.02 The Chadian road transnort indistry encompase the folloing functions: (i) International Freight Transport - comprising an annual export/import tonnage of about 253,00 tWWons of WLL.L LAimJJL constitute nearly 75%. In accordance with freight transit agreements with neighboring countries, the portion of freight transport carried by Chadian carriers is estimated at 160,000 tons (63% of the total volume), corresponding to 130 million ton-km. Freight transport demand and its distribution by type of commodities are presented in Tables 19 and 20. - 39 - ANNEX 1 Page 26 (ii) Domestic Freight - of about 226,000 tons 1/ of which cotton accounts for 146,000 tons (64%). The farm to ginnery transport of cotton is effected exclusively by COTONCHAD. The remaining domestic freight traffic consists of about 80,000 tons, equiva- lent to 45 million ton-kilometers, distributed among the principal commercial and administrative centers (N'Djamena, Sarh, Moundou, and Abeche). Estimates of local freight traffic are not available. (iii). Passenger Transport: There is no scheduled inter-city bus transport in Chad at present, although until 1972, Unitchadienne operated a regular bus service as part of its transport oper- ations in Chad. Except for a few vans and covered pickup trucks, passenger transportation is mainly by trucks; loaded vehicles carry 5-10 passengers in addition to their regular load. The administration does not take any action against thiq tvnp of transnort- although it is il1legal and raises problems for insurance companies. Recent statistics on demand for inter-city passenger transport are not available. Studies carried out in 1963 estimated inter-city passenger t AmanA at iq nn pasngra per year corrp- - r- ------ r_ J__ ponding to about 74 million passenger-kilometers. 4.03 In 1976-77, Chadian transporters carried an estimated 130 million ton-km of dry goods and about 55 million ton-km of petroleum products. Short term projections (1980) of Chadian share of dry cargo transport is estimated at 150 million ton-kmn, excluding the farm-to-ginnery transport of seed cotton. It is difficult to establish future transport demand for petroleum products especially in view of the proposed construction of a mini-refinery in N'Djamena. The volume of dry cargo available for exploitation by Chadian transporters in 1980 is estimated at: External Transport Imports (other than petroleum products) 39 million ton-km Exports 55 million ton-km Internal Transport Sugar 15 million ton-km Other Merchandise 40 million ton-km TOTAL 149 million ton-km B. Road Transport Policy and Regulations Road Transport Policy 4.04 In October 1976, the Government granted exclusive rights to the oonprative dp TrAnsnorteurs Tchadiens (CTT) for both international and 1/ Estimated tonnage for 1976-77. - 40 - ANNEX 1 Page 27 domestic public road transport (Ordonnance No. 027/CSM dated October 23, 1976). At its formation in 1958, the objective of CTT was to organize small Chadian transporters under the umbrella of a cooperative that could offer competition to Unitchadienne, a large foreign-owned transport company. Until 1972, CTT and Unitchadienne operated under a system of freight allocation (applied to international transport only) that progressively favored CTT. Such restrictive freight allocation practices eventually forced Unitchadienne to cease its operations in Chad, and CTT assumed de-facto control of interna- tional freight transport. Other factors contributing to the sole control of international freight transport by CTT are: (i) transit agreements with Cameroon and Nigeria fixing Chad's share of international trade through a quota system; and (ii) the monopolistic control of the Cameroonian share of Chad's transit traffic by the "Syndicat des Transporteurs", the trucking industry coonerative in Cameroon. The extension of CTT's control to internal transnort had been in the offing since the cessation of transport operations by Unitchadienne. 4.05 The Government's internal transport policy similarly appears to encourage a controlled transport industry structure. A number of semi-public and Government agencies have exclusive rights to transport functions related to their activities. FOr irnstance, COTNT , the smi-Got processing and marketing agency, operates its own fleet of about 300 truck- trailers with speciai'Lly-constructed frames, to transport seed cotton from about 2,100 purchase points to ginneries. Exclusivity of.seed cotton trans- port was granted to COTONTCHAD, as it was indicated that COTON.CHAD could transport seed cotton, using its special trucks, at a cost 50% less than the rates charged by common carriers. This arrangement permits CtUNTICU to efficiently coordinate the collection of seed cotton with some of its other functions, namely maintenance of cotton feeder roads, fertilizer and insec- ticide distribution, and ginning operations. Other agencies operating their own truck fleets are: Societe Nationale de Commercialization du Tchad (SONACOT), for collection and transport of gum arabic, onions and hibiscus; Direction de la Lutte Contre les Calamites Naturelles (DLCCN) which is re- sponsible for distribution of essential supplies to regions affected by drought and other calamities (e.g. the regions of Ouadai, Guera, Salamat and Batha); and Fonds de Developpement et d'Assistance Rural (FDAR) for distribu- tion of food aid. Until October 1976, the remaining internal freight transport (about 60-80,000 tons/year) was free of direct control by CTT, although nearly all independent transporters were members of CTT. As a few large transporters, through individual contracts with petroleum companies and the brewery in Moundou, were capturing a major part of the internal transport market, the Government gave de-jure control of all transport activities, external as well as internal, to CTT. Ostensibly, this measure was designed to protect the interests of the smaller members of CTT. Although CTT has the legal authority to control all transport activities, it does not monitor or control small shipments on domiestI routes as a matter of policy. - 41 - ANNEX 1 Page 28 4.06 The Government's strategy to Chadianize the transport industry and its oblective of nrotectfng the intprestR of smAll operaors t-hrough protective tariffs and freight allocation may be viewed with sympathy in a purely social contevt hut ne of thas measures make economic sense. By extending CTT's control to all aspects of public road transport, the Government has created a power group, a-lbeit amorphous and diffused at present, that it may not be able r A~~ %A.L.±.u u ..jia, L.L U LlIL U LL to regulate,despite the fiscal and administrative controls envisaged in the ordinance creating CT as the industLy munuopoly. The International Transit Agreements 4.07 International agreements concerning the transit traffic of land- locked countries normally assign transport of 2/3 of the tonnage, as from the port of entry, to the land-locked country and 1/3 to the transited country. Most of the agreements among "Entente" countries (Ivory Coast, Niger, Togo and Upper Volta) have been fashioned on this principle. International arrange- ments governing Chad's transit trade are: (i) With Cameroon: a transit agreement resulting in the award of 65% of freight tonnage moved between N'Gaoundere and Chad to Chadian transporters and 35% to Cameroonian trucks. (ii) With Nigeria: a transit agreement, although already obsolete, governs the allocation of freight between Chadian and Nigerian transporters from Maiduguri to Chad as shown below: (a) General Merchandise - 85% of tonna2e to Chadian transnorters - 15% of tonnage to Nigerian transporters (b) Fuel - 15% of tonnage to Chadian transporters - 85% of tonnage to Nigerian transnnrtPr (iii) With CAE: there is no formAl areemetP hetween ChAd and CAVI concerning goods transit, although transport of cotton exports to Bangui is h-ndled exclusively by Chadian transporters who also account for about 85% of the remaining transport demand. The agreement between Chad and Cameroon follows the freight allocation prin- ciple as far as the diiso of-freight is- concerned, bUt theC agreeLMnt iS only applicable to freight transport from N'Gaoundere, not from Douala. The agreement with Nigeria has lost its significance as Chadian transporters now carry 40% of fuel imports instead of their share of 15%, as stipulated in the agreements. In future Bank-financed transport projects in Cameroon, CAE, Congo, or other neighboring countries that depend for their economic justifica- tion on Chad's transit traffic, provisions should be made to accord equal priority to Chad's traffic at trans-shipment points and port facilities, and to give Chadian transporters a fair share of available transport. - 42 - ANNEX 1 Page 29 Road Traffic Regulations 4.08 The road regulations are defined by "Code de la Route" comprising Loi No. 5 of February 9, 1971, Decrets 172/PR to 178/PR of September 16, 1971 and Arretes 502/TP-INT to 508/TP-M of October 12, 1971. Concerning vehicle )perations, the "Code de la Route" prescribes the following traffic regula- Hions: (i) MaV. snpd - 60 km/hr (44) Mwx p%ayld - -wo ax1a vehicles .....**** ************19 tons - three of more axle vehicles ............26 tons - seMi-tramlers n truck- trailer combinations .........***.....38 tons (iii) Max. axle load - 13 tons (iv) Load distribution - a maximum of 5 tons/m between the two extreme axles. In addition, the movement of heavy vehicles on unpaved all-weather roads is forbidden, during and for a few hours, after a heavy rain. 4.09 The enforcement of traffic regulations, other than vehicle and driver licensing and vehicle inspection, is either non-existent or extremely lax. The weight regulations, however, could not be enforced as weighing scales were not available. With provision of portable weighing scales under the proposed IDA Third Highway Project, this need would be partially met. This is an area that demands serious consideration, as it has obvious implica- tions for the serviceability of the vehicle fleet and the road infrastructure. The possibility of installing permanent weighing scales at strategic locations (e.g. international border posts and the landing points for ferries) should be considered. Mandatory road closures during and after heavy rains are enforced by DPW wherever road barriers are available. This is a cost-effective traffic enforcement policy, as savings in road maintenance costs resulting from these temporary road closures exceed the cost of immobilizing traffic for short periods. In other areas of regulation (e.g. speed control, unauthorized passenger transport on trucks, vehicle and freight dimension regulations), the main reason for absence of enforcement is lack of adequate funds and trained personnel. Although the Gendarmerie is entrusted with enforcement function, it appears that enforcement of traffic regulations is one of its low-priority- activities- The differpncp in maximum permissible axle load limits between Chad (13 t) and Nigeria (9 t) has led to frequent harassment of Chadian truckers plying Nigerin roadQ. SenQ should h taken to harmonize the road regulations between Chad and the neighboring countries. C. The Truck Fleet Characteristics 4.10 The exact size and age of the commercial vehicle fleet in Chad cannot be assessed accurately as vehicle statistics are not managed effectively and - 43 - ANNEX 1 Page 30 different sources give conflicting data. The vehicle fleet of CTT is esti- mated at 663 vehicles with a total capacity of 10,723 tons and 1,476 m . The distribution of the CTT fleet by vehicle type is shown below: Liaht Trucks Heavy Trucks Tankers (5-15 t) (20-30 t) (9.5-30m 3 Vehicle Fleet 252 356 55 Payload 1,913 tons 8.810 tons -1,476 m3 Oth.Ler than the 100O Fiat trucks (2,5000 t total capacity)l and other vehicles purchased during 1975-76, the average age of the fleet is estimated at 7-8 years (Table 2L). 11 vLLce fleet of other agencies is estif COTONCHAD 300 trucks (mainly 14t Fiat units with trailers); FDAR 15 trucks (Berliet); and DLCCN 138 trucks (mainly Berliet and Mercedes); data for the SONOCOT fleet are not available. There is a serious discrepancy between the size of the truck fleet given in Government statistics and that obtained from truck ownership statistics of various agencies. In view of the unreliability of Government vehicle fleet statistics, additional effort is required to establish these data on a sound basis. Maintenance 4.11 The truck fleet is maintained by vehicle dealers, some CTT members who operate private repair facilities, and the semi-public and government agencies that operate their own vehicle fleets. There are presently three private garages in N'Djamena. In addition, the petit mechanics in the "quartier", using improvised facilities and sometimes locally fabricated spare parts, provide inexpensive repair services, and as such, play an important role in maintaining the vehicle fleet. Although, at one time, CTT operated its own garages in N'Djamena, Moundou and Sarh, it discontinued these services because of their unprofitability. The repair and after-sales services at the private garages, which are the major suppliers of vehicle-repair facilities, are effective and reliable, but expensive. The elevated cost of spare parts has contributed to expensive vehicle maintenance, which causes prolonged immobilization of a nart of the vehicle fleet. The exorbitant price of spare parts in Chad has been cited as one of the major bottlenecks leading to qnh-ontimal vehicle maintenance. Under the existing tax structure, duties and taxes on spare parts are higher, or at least equal to those on new vehicles. The rnvarnmanf hntild revIew the nraspnt strurture of imnort duties and taxes, and liberalize import of spare parts. Revenues for duties on spare parts have averaged abot CrAr A0 mi1l14in per ya bt-waen 1970-75. Tn comparison, revenues from vehicle imports have been about CFAF 300 million per year. Given the excess trucking capacit in ChAd onlternative fo%r the Gr_nmernTnt 7.LV=~U LLC =J% 0 LI. U%ZL.I.U.6 L" J .JA" ULLCG 9 --- - _ would be to reduce duties and taxes on import of spare parts, and offset the loss in revenues by raising duties and taxes on vehicles. In the extreme case, - 44 - ANNEX I Page 31 the exemption of Spare parts from all duties and taxes would require a 20% increase in duties and taxes on new vehicle imports. This proposition would discourage an extension in the size of the vehicle fleet And simultaneously permit improved utilization of the existing fleet through less expensive maintenance. A f stepV4 nng the mai-1--n tn n f t-he trilr fleet would be for CTT to re-open its garages and offer repairs and service facili- ties to its members on a a non-profit basis. Financing of Trucks 4.12 With few exceptions purchase of trucks is financed through credit facilities provided by commercial banks and truck dealerships. Normally, the buyer makes an initial deposit equal to 25% of the purchase price. The remaining amount is financed either by bank loans at an interest rate of 12% repayable in 3 years, or by credit provided by truck dealers at an interest rate of 18%, repayable in twelve installments spread over a period of 18 months, covering two seasons of transport activities. The higher interest rate in the latter case, reflects the greater level of risk taken by dealers in lending to entrepreneurs that may not be financially responsible. Commercial banks are generally reluctant to lend to transporters that do not have finan- cially sound operations; therefore, trucks are purchased mainly through credit arrangements with dealers. In 1974-75, however, the Government pro- vided credit guarantees and permitted the entry of 100 Fiat carriers (60 tractor-trailers, 25 semi-trailers, and 15 semi-tankers) free of import duties for sale to CTT at concessionary terms. Truck Fleet Utilization 4.13 The physical condition of the,road network and climatic conditions affect the utilization of the truck fleet.. Light trucks (5-10 t capacity) are used for short to medium haul operations. Heavy trucks and tankers (25 t capacity) operate primarily on international routes, and when equipped with special tires for long-haul operations on domestic routes, e.g. N'Djamena- Abeche or N'Djamena-Sarh. Most road transport onerations are confined to the dry season (from October to May), with 80% of the annual traffic movements occurring in this season. During the rainy season (June to Otober)_ the international traffic, except for fuel imports, is substantially reduced. With respect to domestic transport, there is no direct road link between N'Djamena and southern Chad during the rainy season; the only available route. is via Figuil in Cameroon. D. The Cooperative des Transporteurs Tehadiens (CTT) 4.14 With the exception of the transport activities of semi-public and Government agencies (such as COTONTCHAD), CTT exercises control over all road transport activity in Chad; encompassing external as well as internal transport. Details of the freight tonnage transported by CTT in 1975 before it was granted the industry monopoly, is given in Table 22. - 45 - ANNEX 1 Page 32 Organization 4.15 Membership - As of March 1977, CTT had a roster of 826 members of whom 350 were classified as active. The majority of the active members (about 65%) have a one-truck operation; only 7% of the transporters operate fleets of 5 or more vehicles (Table 23). This truck ownership profile has permitted CTT to organize a relatively large-scale freight transport operation while preserving the intrinsic advantages and flexibility of a small business. Entry into the trucking profession is open and not subject to any qualifying criteria except the ownership of a vehicle and the payment of initial dues to CTT. This situation has led to a proliferation of truckers who are in the trucking business just because it lends them an aura of prestige in the society. The SEDES study has recommended the creation of an entry license (Licenses de Transporteur Professionnel Grands Axes) that would qualify transporters for operations on international and the major domestic routes. The entry license would be granted on the basis of: (i) domestic and international transport requirements; (ii) professional competence (meaning a minimum level of literacy needed to maintain accounts and records); and (iii) satisfactory financial situation and professional integrity. The licensing of truckers could serve as a useful screening device for elimi- nating prospective truckers who are not serious about th busi-nes. H4ence, it is recommended that, in principle, the Government should introduce such a licensing system. The actual mplementation of this proposal, aswell as others concerning management training for transporters, should be carried out only after more critical issues concerning the road transport industry have been resolved. 4.16 Management - The principal management personnel are the President, the Director-General, the Assistant Director and a Technical Advisor (see Organigramme III). Although the chief executive officer of CTT is the Director General, who is nominated by the Government and acts under the authority of the Ministry of Economy, Plan and Transport, the actual management.of the organization is in the hands of the President, who is closely assisted by the Assistant Director and the Techncial Advisor. 4.17 Functional Organization - The headquarters of CTT are located in N'Djamena. In addition, CTT operates branch offices in NoGaoundere, Bangui, Garoua, Moundou and Sarh, and has a representative in Maiduguri. CTT opera- tions at the headquarters consist of (Organigramme III): (i) Operations Service to manage the centralization of freight demand and distribution of freight to transporters. (ii) Accounting and Invoicing Services to provide billing faci- lities and process payments made to CTT; these services are also used to determine the transporters' share of the pay- ments received from clients. - 46 - ANNEX I Page 3 (iiiJ Computing Services LUo prepare a-cCotUs a statements of the co-operative members. (iv) Operation Fiat to oversee the use of Fiat trucks purchased under credit guarantees provided by the Government and to ensure the reimbursement of credit guaranteed by the Govern- ment (see para. 4.12). CTT's operational staff consists of 66 employees; of these 44 are stationed in N'Djamena. Operations 4.18 Membership Requirements and Capital - Membership in CTT is contin- gent upon the ownership of at least one truck and the payment of CFAF 10,000 per ton of vehicle payload. This sum is considered as capital subscription. However, a CTT member in financial difficulties can borrow from CTT (appa- rently without interest) an amount up to 75% of his initial subscription. CTT's capital, as of February 28, 1977, was CFAF 165,158,000. The magnitude of CTT's capital assets fluctuates over time depending upon the amount of funds transfered to members in financial need, and the level of membership. 4.19 The Operational System - The shippers, either directly or through agents (commission agents for domestic freight; freight forwarding agents for international freight) inform CTT of their freight transport requirements. Than CTT'q operations service (service d'exploitation), under the direct control of the President and the technical adviser, assigns freight to one or more transts E tnsport contract is made under a voucher which indicates the characteristics of the freight, the origin and the destination, and the tariff charged. The transport contract is completed when the trans- porter presents to CTT a confirmation of the delivery of the merchandize, signed by the consignee. At this time, CTT procce the payment for the transport services provided. After deducting the advance made for the pur- chase of fuel, the 4.4% turnover tax, freight insurance and a 10% commission, the accounting service pays the balance to the transporter. At the end of each month, the accounting service prepares a statement of all financial transactions. This financial statement permits the identification of active transporters. 4.20 The 10% commission is charged by CTI fOr the services id in centralizing and processing freight shipments. In case of a directly contracted shipment between CTT and the shipper, the commission is retained by CTT. This applies to almost all of the international freight and the major portion of domestic freight transport. Where a commission agent serves as the intermediary between CTT and the shippers, the 10% commission is divided equally between CTT and the commission agent. A small portion of internal freight transport (less than 10% of total CTT operations in 1975, see Table 24) falls outside the control of CTT. This happens because a number of commission agents do not convey all the freight orders to CTT; instead, they ANNEXV 1 Page 34 privately negotiate a more favorable rate with individual transpUrLtL, -byJ cially for transport on relatively difficult and insecure routes, e.g. to Abeche. The truck operators also contribute to illegal transport activities by overloading trucks with clandestine freight or by carrying passengers when returning empty after a freight assignment is completed. Para-CTT transport activities, however, appear to have decreased since CTT assumed exclusive control of public transport in Chad in 1976. CTT revenues -increased from CFAF 1.24 billion in 1975 to about CFAF 2.0 billion in 1976. The ordinance granting exclusive transport rights to CTT provides CTT withpolicing func- tions to control unauthorized transport activity. Despite the penalties (6 months-3 years in jail and/or fine of CFAF 50,000 to CFAF 5 million) for illegal movement of freight, it remains difficult for CTT to enforce this regulation. 4.21 Freight forwarding agents, who also serve as assessors and collec- tors for the Chadian Customs Service, play a key role in Chad's international commerce. The various functions performed by freight forwarding agencies are contracting of transpnrt services with CTT on behalf of their clients, clear- ance of Chadian goods at the port, inter-modal trans-shipment of freight (such as from rail to road at N'Ganundere), and clearance of goods at Chadian customs. At present, freight forwarding services are provided mainly by foreign-owned companies, but the possibilty of developing domestic capability in this area should be further explored. 4.22 Freight Allocation. CTT's Operations Service (service d'exploita- tion) is charged with freight allocation. When this service receives requests for shipment, they are allocated according to the availability of truckers, as recorded on a first-come first-serve basis. Some transporters complain that freight is not impartially,distributed, but this is contradicted by CTT's management. However, it is likely that CTT members close to the source of freight information are favored and obtain the most lucrative transport contracts. In other cases, many members are negligent in claiming their share of freight transport. For example, it has been observed that while some mem- bers inform the Operations Service of their availability for freight assign- ment, they are not present to claim their share when their turn arrives. Except for large transport contracts (such as cotton transport with COTMNICHaw, the existing freight allocation arrangement under CTT does not provide for a systematic basis of identifying freight transport demand, especially because the lines of communication between transporters and shippers are not well- defined. Fiscal Performance 4.23 Each fiscal year (September 1 to August 31) CTT prepares an inventory of membership and the operational truck fleet, a profit and loss statement, and a balance sheet. Since the last three years, the financial statements have hen nrenared by a professional accountant. After interest payments and ANNEX 1 Page 35 a 30% deduction for the legal reserve, the net profits from each year's operation are either distributed to the members in accordance with the volume of business generated by them or deposited in the surplus account. Some of the salient aspects of CTT's fiscal performance during 1975-76 are: Revenues and Expenditures (i) Revenues: about CFAF 2 billion (ii). 10% commission: CFAF 200 million. (iii) Operational 'expenditures: CFAF 109 million of which Salaries: CFAF 65 million Taxes CFAF 9 million Interest Payments CFAF 12 million Other Expenditures CFAF 23 million Excluding debt repayment, payment to commission agents and payments for loss of merchandize during transport, CTT showed a margin of about CFAF 91 million between its revenues and operational expenditures. CTT's net profits in 1975-76 are estimated at about CFAF 10-15 million, of which about CFAF 7 mil- lion was distributed among the active members according to the amount of revenues generated by them. The available data does not permit a detailed and accurate determination of CCT's net profits, or an analysis of its financial performance. The distribution of CTT's revenues (CFAF 2 billion) among its membership Is shown in Table 25. Tt reflects the preponderance of CTT members who own one or two trucks and, as such, account for a small portion of the Bank rut ies A. 1. T- is suspected that bankrupties ae common epecall a1 nmongc tnc- porters owning 1 or 2 trucks. Of CTT's 876 registered members, only 350 were active during 1975-76. L.though a number of CTT members are onlytmorrl inactive due to lack of working capital or vehicle breakdown, a majority of inactive members have either suffered bankruptcies or sold their businesses to members with more profitable operations. Some of the members listed as inactive may have been dead, but they continue to retain their membership in CTT. Except by voluntary resignation, a CTT member is rarely removed from the membership roster. E. Economic Characteristics Tariffs 4.25 Transport tariffs were established by official decree (Decret 327/PR/TPT/DT) for different routes in December 1974 (Table 26). They have not been revised since then, except for minor changes relative to N'Gaoundere which has replaced Garoua as the trans-shipment point on the Cameroonian -49 - ANNEX 1 Page 36 route. Some freight categories have special tariff structures such as trans- port of material for the army, transport for exploration of petroleum, and transport of beer from the brewery at Moundou to N'Djamena. On international routes, with the exception of Nigerian routes, the tariffs lie between CFAF 10-22 per 5on-km for dry goods. Tariffs for fuel trans ort vary from CFAF 11.7 Der m -km (Laeos-N'Diamena route) to CFAF 20 per m -km (Maiduguri- N'Djamena route) depending upon length of haul. The tariffs on domestic routes are of te same order of magnitude as on international rnutes (CFAF 10-22 per ton-km). On difficult routes such as earth tracks in the Sahel zone, tariffs vary between CFAF 25-66 nr tnn-km- The tariffs for the Maiduguri-N'Djamena route (Nigeria) are not consistent with the general tariff structuree The official tariffs for general merchandise and s,,gar on this route are CFAF 38.4 per ton-km and CFAF 31.2 per ton-km respectively, compared to CIAT 18 per ton-Km for general merchandise and CFAL 1.5 per tonAKM for sugar on the N'Gaoundere-N'Djamena route. The higher rates on the Nigerian route reflect the higher transport costs associated with the use of smaller trucks (5-10 ton capacity) and are indirectly designed to protect the inter- ests of small operators. If light trucks were replaced on this route by larger capacity carriers, a large part of CTT's membership would be out of business. The Government and CTT, however, appear to endorse the preservation of these smaller operators on social grounds, as most of the operators on this route own one or two old vehicles that serve as their only source of income. 4.26 Most transporters consider the official tariffs on international routes and major domestic routes insufficient to cover the cost of transport; this is particularly true for subsidized items such as flour for which the transport tariffs are about 30% lower than for other commodities. Contrary to the widely held impression that the transport tariffs are high in Chad, road transport tariffs in Chad are of the same order of magnitude as in Upper Volta and Niger where the range of international tariffs varies from CFAF 15-23 per ton-km (1975 figures). On the average, the Chadian tariffs are lower than the transport tariffs used in northern Cameroon by the Cameroonian Syndicat des Transporteurs. The transport tariffs applied by the Syndicat from December 15, 1976 range from CFAF 19 to 25 per ton-km (see Table 26). Financial Transport Costs 4.27 Average transport costs, in early 1977 prices, (Table 27) adapted from the ORGATEC study are summarized as follows: - 50 - ANNEX 1 Page 37 Average Financial Transport Cost (CFAF/ton-km) International Domestic Tracks in Route Route Sahelian Zone (i) Dry Goods Normal Annual Kilometrage 40,000 35,000 30,000 Truck 12 t Payload Load factor - 65% 28 30 40 - 55% 33 35- 45 Truck-Trailer 26 t Payload Load Factor - 65% 17 21 - 55% 20 24 - 3 Average Financial Transport Cost (CFAF/m -km) International Route (N'Djamena-Lagos) (ii) Fuel Annual Kilometrage 70,000 80,000 90,000 Tanker - 30m3 (50% Load Factor) 14.0 13.5 13.0 Comparison of Transport Costs with Tariffs 4.28 Except for the tariffs on the Maiduguri-N'Djamena route, the exist- ing road transport tariffs are lower than transport costs (in some cases as much as 25-50%). Factors that have permitted trucking operations at tariffs that are annrent1lv lnwr than transport costs are: first, most transporters only consider out of pocket expenses and are not duly concerned about vehicle replacement; secondly, purchase of part of fuel and spare parts in Nigeria helps to mitigate the incidence of high cost of transport operations; and finaL.Ly, Subsi4A4zed impot of b-uti 1 tInnruiks under Operation Fiat has helped to postpone the day when large scale vehicle replacement would be required. A Comparison f es4-4n 4-4ff. T.rthl tnsport costs is shown in Exhibits II to VI. The incidence of transport costs was shown to decrease by CFAF 1-1.5 per ton-kM if spare parts, fuel -A ti4re ova named to he partially purchased outside Chad. It was noted that the major factor contri-- buting to high transport costs, was the low rate of truck utilization. If the load factor were to increase to 0.75-0.90, the resulting transport cost would be within the range of the existing tariffs. However, owing to the structural imbalance between exports and imports, the lack of effective coordination among shippers, carriers, and transport intermediaries, and the fact that a large proportion of imports (55%) are destined to N'Djamena while most exports (over 90%) originate in the south, it is unlikely that vehicle utilization can be improved much above a 60-65% load factor in the near future although there is scope for increasing annual haul distances through better control of truck - 51 - ANNEX 1 Page 38 supply. Hence, on upward adjustment of tariffs to adequately reflect the cost of road transport is justified. In this respect, the transport industry studies prepared by SEDES and ORGATEC could serve as a sound starting point for a general revision of the tariff structure. It is recommended that rates should be specified as maximum tariffs and should not be mandatory. Trucking Capacity 4.29 The liberal vehicle import policies in the past (especially the Government purchase and subsidized resale of 100 trucks to CTT in 1977), and trucks furnished under drought-relief programs have created excess trucking capacity in Chad. The disequilibrium between the supply and demand for freight transport has led to under-utilization of the fleet, and consequently high transnort costs. The availablp truckfng canacitv considering on1v the CTT fleet (10,723 tons and 1,476 m ), is estimated to be (see para. 4.10): Trucking Capacity (i) Dry Goods Transport 1j Annual Kilometrage 40,000 60,000 Load Factor - 55% 236 2/ 322 - 65U29 1 Tanker Capacity (million ton-km) (ii) Fuel Transport Annual Kilometrage 50,000 80,000 90,000 100,000 Load Factor - 50% 3-jL 4?o ou (1.0 m = 0.81 ton of fuel) 1/ Includes domestic transport of fuel in barrels or containers. 2/ 10,723 x 40,000 x 0.55 = 236 million ton-km. 3/ 1,476 x 50,000 x 0.50 x .81 = 30 million ton-km. Freight transport demand available for exploitation by Chadian transporters consists of 85 million ton-km of dry goods transport on international routes, 45 million ton-km of dry goods transport on major domestic routes, and 55 million ton-km of fuel transport on international routes; that is 130 million ton-km of dry goods transport and 55 million ton-km of fuel transport. The comparison of available transport capacity with demand shows: - 52 - ANNEX I Pag 39 Excess Capacity C 1/ Dry Goods Transport Annual Kilometrage 40,000 60,000 Load Factor - 55% 82% 2/ 148% - 65% 1 1% 9.- 2227- Fuel~ 'r- - - - Annual Kilometrage 50,000 3ij) 8 9,0 1 Load Factor - 50% -45% 5/ -13% -2% 9% i/ Excess Capacity, Ca -Dt C = x 100 E D t where, C_= Excess capacity (%) L C = Available trucking capacity (million ton-km) Dt= Transport demand (million ton-km) 2/ (236 - 130)/130 = 0.82 3/ Equal to 12 round trips between N'Djamena and Lagos per year (1/month). 4/ Equal to 24 round trips between N'Djamena and Lagos per year (/Imonth). 5/ (30 - 55)/55 = -0.45 4.30 At the existing rate of truck utilization (40,000 km/year, and a load factor of 0.55), there is an excess capacity of 80% for dry goods trans- port. For fuel transport, an undercapacity in the range of 13-45% is indi- cated with utilization of tankers varying from 50,000 to 80,000 km/year. With improved scheduling and better coordination of fuel transport with sup- plies in Nigeria, the existing tanker fleet could cater for the present demand for fuel transport. 4.31 For a realistic viewpoint, it is unlikely that the load factor for dry goods transport can be improved more than 65-70% as long as the inequi- librium between exports and imports continues to prevail. This imbalance is. further magnified because a large proportion of imports (55%) is destined to N'Djamena while most exports (over 90%) originate in the south. For fuel tankers, the load factor will continue to remain 50% as long as Chad remains an importer of fuel. The foregoing analysis shows that at the current levels of vehicle utilizatin, the tanker fleet would have to be incrasad i n th future while import of trucks curtailed in order to strike a closer balance betweon trnncnnr- demand and spply. A closer onr-ranonn Katwen sipplu and demand of trucking capacity would help to lower unit operating costs by permitting nn incrase in the annil kilometrna travelled. - 53 - ANNEX 1 Page A0 4.32 DT should initially undertake a survey of the existing truck fleet and determine its operational characteristics. In view of the age spectrum of the truck fleet (an average of 7 years with the exception of 100 trucks purchased in 1974-75), the excess trucking capacity may be an ephemeral phe- nomenom. Other than regulation of future import of trucks to achieve a closer balance between supply and demand of trucking services, no action is needed. In this respect, DT should be strengthened to estimate demand forecasts for freight transport. Since at present there is a shortage of fuel tankers, future vehicle import policy should take this into consideration. As an alternative to vehicle imports, some of the trucks could be converted to tankers. A flat-bed truck can be converted to a tanker locally, at a cogt of CFAF 5 million compared to the cost of CFAF 25 million for a new 35 m' capacity tanker. Influence of Transport Costs on Prices of Imported Consumer Goods and Agricultural Exports 4.33 The variation in the price structure of a number of commodities from CIF price. Dort of entry to retail price in N'Djamena is traced in Table 29, as a function of international transit routes. The average cost of transport per ton between Douala and N'Djamena is about CFAF 34,000 (Table 30). Except for sugar and flour, transport costs account for at most 20% of the difference in CIF and retail prircs TIn fact- 1PvntPd imnort dtiiqes distribution costs and markups are the primary contributors to high import prices in Chad. There- fore, it appears unlikely that a reductlon in t-ralnport costs on international routes will have an appreciable effect on lowering final consumer prices in Chad, as long as taxes and distribution costs contjiu ton aiont for the major portion of intermediary costs.. On the other hand, an increase in transport costs would tend to be accompanied by corresponding increases in transport tariffs and distribution costs, which, in turn,'would have an inflationary impact on consumer prices. Transport costs alone account for US$140 for each ton of Chadian products (primarily cotton) sold on the inter- n at io nal1 m ark et.- The- propoe int e rna tio-VnaI ro0ad lnk (MuduGijib road) to the trans-Cameroon railway (shorter by 270 km) would reduce transport costs by roughly CFAF 5,400 (US$22) per ton; with an equitable and fair agricultural pricing policy, a substantial portion of these savings could be passed on to the producer at the farm-gate level. It is quite likely that reduction in transport costs, both domestic and international, would mate- rialize in expansion of agricultural output, especially for cash crops such as cotton, rice and sugar cane. User Charges 4.34 Total road user charges during 1973-75 averaged about CFAF 1.2 billion. The share contributed by road transport industry is estimated at 50-60% of the revenues. Custom duties and taxes on new trucks are estimated to be about 40-60% of CIF price, while taxes and duties on spare parts are about 60% (Table 30). tThe relatively higher price of spare parts makes the cost of vehicle maintenance prohibitive, and consequently, results in pro- longed immobilization of a significant part of the vehicle fleet. -54 - ANNEX 1 Page 41 F. Strengthening of the Road Transport Industry 4.35 The Government, under the influence of CTT, has pursued a road transport policy that has gradually eroded competition in the trucking sector, and has finally resulted in legislation legalizing CTT as the industry mono- poly. There are some indications, that CTT used its monopoly position in the past, as a device to maintain higher transport tariffs on international routes. At the peak of the Sahelian drought (1973-74) CTT opposed and pre- vented larger and faster Nigerian trucks to transport relief-food supplies at rates substantially lower than those demanded by CTT. 1/ 4.36 The measures needed to foster comnetition in the road transnort industry would necessitate the annulment of the ordinance creating CTT as the indiitrv mnonnlv And deretilation of the industrv esneciallv with resnect to transport tariffs. CTT, however, is an operationally effective entity des- nita its fAilings; itq disso1iition could throw the road transport industry in disarray. These measures, furthermore, would be politically unacceptable to the Government and their effectiveness could be undermined by external con- straints such as the existence of a transport monopoly in Cameroon and inter- nat-ionanl freight quotAs. einc, measures nimti to-n penuirAcp rompetition in the road transport industry would have to be introduced gradually. This approach has further merit as CT, wit its Large membership and ind i v A ized operations, may not be able to function as a monopoly. It is quite likely that CI. woul.dL% d.Le a natura death once its members begin to feel that CTT is not performing its functions adequately and impartially. 4.37 The main weaknesses in CTT's present organization are the concen- tration of power in the office of its President without adequate checks and balances, coupled with the potential for nepotism in the system of freight allocation. Decisions concerning freight assignment are made by a small group of CIT's top executives who, incidentally, own and operate truck fleets themselves. There are indications that freight allocation among transporters is not carried out impartially. A possible alternative to rectify this situation could be the creation of a "Bureau de Fret" (BF), which would be managed by an independent Director appointed by the Minister of Economy, Plan and Transport (MEPT). BF would operate as a semi-public agency under the overall direction of MEPT. (The organizational structure of a proposed BF is shown in Organigramme IV). BF would be charged with the identification, analysis, allocation and control of freight transport demand. (Note: Under the proposed reorganization scheme, related functions of billing and accounting of transport receipts would continue to remain under CTT). In addition, BF would monitor the sharing of freight between Chadian and foreign truckers in accordance with international agreements. BF's functions would encompass the 1/ Theodore Cohn: "The Sahelian Drought: Problems of Land Use," Inter- national Journal Vol. XXX No. 3, Summer 1975, Canadian Institute of International Affairs. ANNEX I Page 42 regulation of international freight transport and domestic freight transport above a certain tonnage limits. If Below these limits, there would be no controls and truckers could operate independent of BF and CTT. The separation of freight allocation functions would necessitate reorganization of CTT, which would continue to provide financial and accounting services to its members, and serve as a professional trucking association (Organigramme V). This would require a revision of CTT's statute, especially with respect to the functions of the President, the Director General, and the Administrative Council, in the present structure of CTT. Executive authority would rest with the Director General, whereas the President's role would be restricted to,policy matters. Individuals appointed by MEPT, and the Director General and Director of CTT, would have no financial interest in trucking-operations. In principle, the Government does not disagree with such an approach but considers the proposed changes premature due to the inherent dangers in creating a new bureaucratic entity and the lack of experienced personnel needed to operate BF. 4.38 CTT, however, should be placed under regulatory supervision of DT with provisions of mandatory annual audit of CTT's accounts by the Government. In the first instance, the Government should attempt to strengthen DT in terms of staff and regulatory powers so that it can effectively perform the normal Government role in these fields. Inland Water Transport Industry A. Transport Demand 4.39 River transport, estimated at about 10,000 tons per year is rela- tiv.el i 1nsi gnifi4cant. The -rfi is- 4-U- heail ublacd onA Chr the up- L. LV L., AL .~tJ .6 A.E*.L ** .LL 04 1 .t LACO -Y J fU- . CltO. -J. -a *a 4. - - - stream traffic from N'Djamena is about 20% of that moving downstream. The major coymdities transported are beer, wood, sugar, steel, and fuel. A r1u trip by a convoy of barges takes about one month. Transport between N'Djamena and Lake Chad is estiated at about 12,000 tons, incLUsLVe of bDrCge and Small craft. From the lake, the goods transported include Natron (a sodium carbonate found on the shores of the lake), some fish, and agricultural products. A de- tailed breakdown of freight transport on inland waterways is given in Table 31. 1/ This would require specific action by the Government to deregulate all domestic freight transport under a specific level of tonnage (e.g. 10 tons); that is any shipment under 10 tons could be negotiated directly between the shipper and the transporter. - 56 - ANNEX I Page B. Industry Characteristics 4.40 Barge transport on the rivers and the lake is operated by three companies; of these, the two more important companies are Comouna (French owned) and Societe Tchadienne de Transport Fluvial (STTF), a Chadian concern. The operational characteristics of the three companies are: (i) Comouna: Operates a fleet of five convoys with an aggregate capacity of 1,040 tons. The fleet consistq of 13 baiges, 4 pushers, and two petroleum tankers (40 m' and 20-m' capacity respectively); (ii) STTF: Operates a fleet of two convoys (aggregate capacity of 650 tons), consisting of 8 barges and 4 pushers; and (iii) Souhaibou: (Chadian owned) operates a single convoy with a capacity of 150 tons. 4.41 Two-thirds of the river freight transport is allocated to Comouna, while the remaining third is shared between STTF and Souhaibou. Matters relating to water transport industry fall under the jurisdiction of the Water Transport Section (so far it has existed in name only) of the Directorate of TrAnsport. C. Tariffs 4.42 Water transport tariffs currently in force were established by the Government in 1974 under Decret No. 327/PR/TPT/DT of 7-12-74. Transport Ltarffs on the Sarh-N'Ai Jamena itinerary vary from C AVIX 9 000-9,600 per ton; on Moundou-N'Djamean itinerary CFAF 12,000 per ton, and between N'Djamena and L u kL WL* U -utf -L -4VrA i Lake Chad, abo UC +,OV per ton. IIebe LLdULL LnLU UCFr U2 pe ton-km compared to about CFAF 14 per ton-km by road transport for comparable items. As a result of its small scale, high unit cost of operation and seasonality, water transport is expensive. The present tariff structure reflects the advantageous position of water transport as the only direct surface transport mode between N'Djamena and Southern Chad during the rainy season. Air Transport Industry 4.43 Domestic air transport is handled by Air Tchad, an autonomous cor- poration created in 1966 and operated by UTA (Union des Transporteurs Aeriens) personnel. The Chad Government holds 66% of the corporate stock and UTA the remaining 34%. The Air Tchad fleet consists of one DC-4, 2 DC-3's, and a light passenger aircraft (Beechcraft Baron be-58). A. Air Transport Demand 4.44 The air transport demand serviced by Air Tchad, has averaged about 20,000 passengers, 450 tons of freight, and 75 tons of mail per year during 1975-76 (Table 32). Although passenger traffic has remained fairly constant - 57 - ANNEX I Page 44 during 1970-75, there has been a significant decline in the demand for air freight transport. In 1975, Air Tchad logged 1,611 flight hours compared to 1,919 in 1971, and 3,466 in 1968. The domestic demand for air transport is marked by a seasonal characteristic with the demand peaking in August-September (the rainy season) when road transport becomes quite difficult and in many cases impossible (para 3.16). On the average, the demand for internal air transport accounts for 52% of the available capacity, -in view of the signifi- cant decline in the demand for air freight transport in recent years. B. Air Tchad 4.45 Air Tchad offers scheduled service between N'Djamena and ten interior cities (3 flights nr week to AbechA, two per week to Rol, Moindon- and Sarh, and one per week to Faya, Am-Timan, Pala, Bongor, Mongo and Ati). Although the company generAtes sufficient revenupQ to ouer its onprAting expentditures (Table 32), it has a serious cash problem resulting from an outstanding Government debt of about CFAF 700 million (US$2.9 million). 1/ In 1976, the Government owed CFAF 210 million (about 60%) of the CFAF 347 million in revenues. Excep forL the prmie =French financial assistance to pay for the expatriate technical staff in 1977, the financial prospects of Air Tchad are not favorable. Gv en.L'-LL LLe Le.L4.LV.Ly LLIh cUsL oL maintaining thle eXiSting fleet (35% of all operating expenditures was spent on major equipment main- tenance in 1976, while minor maintenance was provided free by Air Afrique), there is an urgent need for fleet renewal; otherwise, the service might have to be severely curtailed or even terminated. Air Tchad would prefer to replace the existing DC-3 and DC-4 aircraft by smaller 19-passenger capacity commuter type aircraft, in view of the declining demand for air freight transport. This would help in providing more frequent and reliable passenger service. C. Tariffs 4.46 Passenger tariffs vary from CFAF 35 per seat-km (DC-4 and DC-3 operations) to CFAF 41 per seat-km (for Baron Beechcraft operations). Freight tariffs for shipments under 250 km vary from CFAF 0.23-0.37 per kg-km (CFAF 230-370 per ton-km), and for shipment over 250 kg from CFAF 0.15-0.20 per kg-km (CFAF 150-200 per ton-km). These tariffs have remained unchanged since Janaury 1976, and are based on 1966 Air Afrique international tariffs, with adjustments for cost increases. The Air Tchad passenger tariffs (US$0.23-0.27/mile) are of the same order of magnitude as those in the US and UK for similar type trips, but are higher than,the prevailing rates in develop- ing countries, where air travel is normally subsidized. Air fares (1976) for comparable routes in USA, UK, Bolivia, and Peru, in terms of haul distance and tvne of aircraft used. are given below: 1/ Resulting from arrai nnamentQ fr nfficial travel on GnornmPnt account. ANNEX1 Page 45 USA (Albany-Rutland; US$0.34/mile, Bangor-Presque Isle; US$0.18/mile) UK (Aberdeen-Edinburgh; US$0.27/mile, East Midlands-Jersey; US$0.19/mile) Bolivia (La Paz-Santa Cruz; US$0.12/mile) Peru (Lima-Tingo Maria; US$0.10/mile. V. Engineering and Construction 5.01 Minor engineering studies are carried out by DPW's Studies and Hydraulics Office (SHO), which also supervises construction works, while all major roads are designed by foreign consultants under DPW's supervision. Design standards are selected on a project-by-project basis as there are no official design standards for roads. The Road Planning and Design Office to be established under the proposed Third Highway Project, would define these standaraQ for aifferent categories of roads. Facilities for soil and mate- rials testing are available at the Ecole Nationale des Travaux (ENTP) labo- rntnrv in N'Diampna. Improvement and reconstruction of limited sections of road are carried out by force account, as domestic contractors are not yet available for undertaking these cvlworks._ Major roAd cnstruction proiects are executed by foreign contractors and supervised by foreign consultants under DPV's overall- chnarge* Domestic Construction Industr- 5.02 The domestic contracting industry is at an early stage of develop- ment. About 15 contractors deal mainly with building construction, although an additional number of small contractors carry out building repairs and other minor works. The few local firms that have the construction experience to undertake civil works are foreign-owned and work carried out under contract is generally expensive owing to the high logistic costs associated with mobi- lization of equipment and staff. The experience with domestic contractors under the IDA Highway Maintenance Project was discouraging and led to con- siderable delays in construction of DPW mechanical workshops in N'Djamena (a contract of US$45,000). The two firms with lowest bids were not selected because one could not furnish evidence that it had paid all its taxes (a re- quirement under the conditions of tender) and the other requested withdrawal of its bid since it had secured another contract. The local contractor finally selected ran into financial difficulties after only 30% of the con- tract had been completed. Consequently DPW used part of the contractor's security deposit to purchase directly some of the materials that were to be procured under the contract. The work was finally completed by another contractor with financial assistance provided by DPW. As a result, the construction of workshops was marred by delays; between the call for bids and final completion of works, three and one-half years had elapsed. The major problem confronting domestic contractors is their inability to prepare reason- ablp bids, maintain accounts, and efficiently execute contracts, as well as the difficulty in obtaining credit at reasonable terms. - 59 - ANNEX 1 Page 46 5.03 The Government is in the process of establishing a contractor registration system based on previous experience and work potential of the contractors. This operation is being carried out with the assistance of the Offic for TndistriA1 Promotion supported by UNIDO. Government efforts to identify domestic contractors should be encouraged and expanded to: (i) esti- mate prs,eta pvr-t-aed demAnd of the ciuil works spcrtor! and (1i) studv the present structure, capacity and competence of the domestic contracting industry and make recommendations for its improvement, including financi4al1 assistance. Appropriate Intermediate Technologies 5.04 To date, labor-intensive techniques have been used to implement. a portion of the Sategui-Deressia Irrigation Project (IDA Credit 489-CD). These methods have been principally used in excavating distributary canals and constructing dikes. Of the total earthwork operations during January-June 1977, about 20% were carried out by casual laboi, using about 1,000 laborers with an average productivity of about 0.5-0.8 m-/man-day. 5.05 Labor intensive construction methods are particularly appealing in the context of Chad's widespread underemployment and the disparity in rural and urban incomes, but the expansion of such technologies to the highway sector should be evaluated in the light of the following factors: the rela- tively sparse distribution of population (16-20 persons/sq. km in the most densely populated area s), the need for a large cadre of supervisory staff with labor management skills, a relatively high minimum wage rate (CFAF 48/hr or US$1.60/day), scarcity of construction materials and water within reasonable haul distances (5 km), and intrinsically low unit productivity of labor-based methods; all of which combine to make the Application of labor- intensive technologies difficult and expensive. A preliminary financial analysis showed that the cost of regravelling by traditional equipment in- tensive methods was CFAF 1600/m compared to a cost of CFAF 3,450/mj by an appropriate mix of labor and equipment (agricultural tractors, trailers, and rollers). An economic analysis shadow-pricing labor and foreign exchange costs would not have changed the outcome of the analysis, as labor represented only about 25% of the total costs in the latter alternative. Furthermore, 'there a no sutable labor-intensive suhtitutes for mechanical grading and compaction. 5.06 For some routine maintenance operations, the introduction of labor-- based practice by "cain4era", n mobile road gang of 25 men, each responsible for light routine maintenance of a 100-200 km road section under the supervision of a sector chief, as envisaged under the proposed IDA Third Highway Project, holds better promise. Labor-intensive methods are also suitable for a number of other road building operations such as the i-n-sit nagf concrete culvert pipes ard construction of culverts, inclusive of protective gabions. These techniques have been used in the improvement works on cotton feeder roads under the IDA Second Highway Project. If opportunities exist, it appears more productive to use labor in site-specific construction tasks that afford development of skills, rather than suboptimally substitute machines by labor. ANNEX II Page 1 CHAD TRANSPORT SECTOR MMORANDUM ANNEX II - Principal External Transport Routes 1/ 1. Chad is served by three principal external surface-transport routes to the sea, namely: the Nigerian Route via Maiduguri to Lagos or Port Harcourt; the Cameroonian Route via N'Gaoundere to Douala; and the Transe- quatorial Route via Bangui and Brazzaville to Pointe Noire. Two other routes of lower significance'in terms of volume of trade carried are the Benoue and Sudan routes. The geographical location of these routes is shown in Map 1, while commodity flows in and out of Chad are depicted in maps attached to this annex. Distances 2. For service to N'Diamena. the Cameroon route from Douala at 1,720 km, and the Nigerian route from Port Harcourt at 1,695 km are essentially Anual Rnth involvea road-rail t-rnnqfpr. bit thp Nicerian route is 851L hv rail, whereas the Cameroon route is about 55% by rail. From Apapa (Lagos), there is an additional 345 km of rail distne Distances from the Nigerian ports to Moundou and Sarh are substantially greater than from Douala. The seasonaL( monthslyear) Benoue route is 2,0l0 I- from Burutu to N'Djamena, and 1,990 km to Moundou. It is therefore, about 10% longer than both the NiAgerAan roaulrail distance to N'Djamena and the Cameroon route to Moundou. This route is about 75% by river and 25% by road. The Transequatorial route from Pointe Noire is the longest of all alternatives. L Ls 2,3t5 km t Moundou or Sarh, and 3,710 km to N'Djamena, involves two intermodal transfers (rail-river-road), and is available for transport only 6-8 months per year. Costs 3. Transport of Chad's imports is characterized by the following cost considerations: i) The Nigerian route is less costly than the Cameroon route for all imports from overseas destined for N'Djamena, as indicated by a comparison of intermediary costs (retail price less CIF cost) shown in Table 1; I/ Source: "La Formation des Prix des Produits Importes en Republique du Tchad", Rapport Final, United Nations Consultative Group for Development of Central Africa, March 1975. ANNEY II Page 2 ii) These differences in costs become insignificant when translated into retail prices as shown in Table 2; and iii) The retail price in Chad of imported goods via the cheaper Nigerian route is 60% to 280% greater than the CIF price, depending on the commodity (Table 2). 4. The choice between routes, however, is governed by the risks of pil- ferage and damage, the delays in delivery due to port congestion, lack of overland transport capacity, inter-modal transfers, and preferences for incurring tax, transport, and handling expenses within the CFAF monetary zone, rather than in Nigerian currency. Except for fuel transport, these factors have contributed to make the Cameroonian route the preferred external corridor. 5. Moreover, the wide range of differences between CIF values and retail prices is more a function of commercial and taxation factors, rather than differences in intermediary costs. Compare, for example, two bulk com- modities: flour and cement. The import taxes on flour are CFAFl,622 and CFAF461 per ton for the Cameroon and Nigerian routes respectively, but on cement, they are CFAF9,552 and CFAF8,660 respectively. The wholesale and retail mark-up on flour is about CFAFl9,500, and on cement about CFAF11,000, while t-hp CTF value of flour is CFAF68,000 per ton, and of cement CFAF15,170 per ton. Therefore, there is no reason to believe that a decrease in trans- portation costs will necessarily be reflected in lower consumer prices or that routing of imports is sensitive to small changes in relative transport prices between alternativen trnspornt routes.z 6. The Transequatorial route is price~ nmpetitive with the other routes only for bulk commodities such as petrol products, cement, and fertilizer des- tined for southeast Chad. The riVer transport linK,p while inexpensive, is only navigable about 6 months of the year. The problem of scheduling ship- ments within this,period is severegiven ocean shipping schedules, capacity constraints on the Congo railroad and the river barges, and poor road condi- tions in CAE during the rainy season when the river is navigable. Delays of 4-6 months and accompanying storage and inventory carrying costs compound the problem. Consequently, this route is used less and less. 7. For fuel transport to N'Djamena, the.Nigerian route is the cheapest, international transit cost being CFAFI,745 per hectoliter. The port of origin is Apapa, Nigeria. By contrast, the Transequatorial route from the port of Pointe-Noire, via Bangui to N'Djamena costs approximately CFAF2,610 per hecto- liter. However, for delivery to Sarh, transit cost.-via Bangui is only about CFAF2,000 per heqctoliter. As the internal cost of moving petroleum products between Sarh and N'Djamena is about CFAF610 per hectoliter, the delivery of petroleum products via the Nigerian route to Sarh would cost about CFAF2,355 per hectoliter in total transit costs from Apapa. This suggests that for the N'Djamena area, there is a competitive advantage in using the Nigerian route for fuel transport, whereas for the Southeast, it may be cheaper to use the Transequatorial route. - 62 - ANNEX II Page 3 Future Trends 8. Assuming satisfactory political relations between Chad and Cameroon, the Trans-Cameroonian route should continue to increase its volume, diverting traffic from other routes for the following resons: i) The extension of the trans-Cameroon railway to N'Gaoundere, and th construirnn of the new paved road from there to within 20 km of the Chad border makes this route equal in distance and qualty, 4f ,nt bt-t-er- than the Nigerian al- ternative. Although both Nigerian ports and Douala have congestion delays, these will- continue to beame4eiu in Nigeria; ii) The agreement between Chad and Cameroon trucking cooperatives on the sharing of freight from the railhead at N'CaOUnd should lead to more efficient and lower-cost freight handling, and reduce storage pilferage and transit time; and iii) Once the Moundou-Guidjiba road is built, almost all import and export traffic for southeast Chad should divert to this route, with the possible exception of petrol products. Tnis area is also the primary economic growth zone of Chad, and is expected to have the highest growth rate of imports and exports. - U.) ANNEX I Table 1 CHAD TRANSPORT SECTOR MEMORANDUM Intermediary Costs - Port to N'Djamena, 1974 7 ~1/ Intermediary Cost (CFAF/tonU)- Product Cameroon Route Nigerian Route % Difference Flour 25060 22103 13.37 Sugar 25870 23700 9.15 Tea 45701 36380 25.62 Reinforcing Steel 29580 27405 11.38 Corrugated Iron 30035 27860 7.80 Cement 24125 23032 4.74 Fertilizer 21795 19930 9.35 Textiles 58291 52928 10.13 Ceramics 41905 33264 25.97 Insecticides 27625 26258 5.20 Soap 34555 26058 32.60 1 / ntermiay4n, Cot-: Retail Pric. - C Cost. - 64 - ANNEX II Table 2 CHAD TRANSPORT SECTOR MEMORANDUM Retail Price of Selected items in N'DiamenA As A Viinion nf Import Routes and Comparison of Retail Prices with CIF Costs Product RLetail Price in N'Djamena (CFA7) % Difference Retal Pre/C rct 1/ Cameroonian Route Nigerian Route (percent) Flour 114565 109582 4.3 161.2 Sugar 198625 194993 1.9 195.0 Tea 504154 480475 4.8 282.6 Reinforcing Steel 191174 186692 2.4 266.9 Corrugated Iron 322607 317301 1.6 302.6 Cement 57734 60178 4.2 380.6 Fertilizer 93372 89742 4.0 170.9 Textiles 4700269 4688495 0.3 308.4 Ceramics 350044 337110 3.8 257.4 Insecticides 652568 647226 0.8 115.0 Soap 326352 313482 4.0 245.9 I/ For Nigerian route. ANNEX II EXHIBIT I IBRD 13585 n r- L l B Y A A.R.E. { TRANSPORTATION SECTOR °2 A FRC A MEMORANDUM { ! COMMODITY FLOWS, 1974 - DRY CARGO IMPORTS BY SURFACE ROUTES 1514 t TONS -- INTERNATIONAL BOUNDARIES N l G E R 30O 80 90 120 150 KILOMETERS S U D A N AMENA SARHJ 120 "0 MOUINDOL U h 'Rj k 1 I y CENTRAL AFRICAN EMPIRE E This map has been prepared by the World Banks staff exclusively for the convenience o'I f the readers of the report to which it is #ttached, The. denominstions used and the CAMEROON bounderies shown on this map do not imply, on the part of the World Bank and its affiliates. any Judomant on the laal status of any territorv or anv endorsement or acceptance of such boundaries. 13599 p° 2,0° MAY 1978 EXHIBIT II IBR D-13586 ' s ŕila i å o. 22- 2 L l B Y A |A.R.E. CHAD TRANSPORTATION SECTOR . - 2 H4 a- /r% A kA . lM IAA AFRICA C MMnDiTY Fl WS 1 74-FJFL IMPORTS BY SURFACE ROUTES 1566 t TONS INTERNATIONAL BOUNDARIES IN I G~ E R~~j 3 ap 60 9p 120 150 KILOMETERS I4ot rr S U D A N - i 204 DARH - \ .'&h.-7 MOLIN-In-I 8- / CENTRAL AFRICAN EMPURE J 1.th #" ee p fterepored to th Work Sank» stoff excusivly fo the cnvenionco b munar~e shown on this mam do not`imDlv. on the vnr of the Woffd Hank and its * ffllt8nc of a nnhebna slogslstatuesof any territorsr nyendorsement orj .°• 2,0. 2p. 20 MAY 1978| ANNEX II EXHIBIT III IBRD 13587 L 1 B Y A A.R.E. [w2 2 CHAD TRANFUKlAl1UN tTlUK [ MAFARICAM"I D ANI COMMODITY FLOWS, 1974 - EXPORTS BY !SURFACE ROUTES (EXCLUDING CATTLE ON HOOF) 345 t TONS - INTERNATIONAL BOUNDARIES N l G- F R . 0 306090 120160 KILOMETERS rr [14 4 ABECHEc 74 t S U D A N 11( FRIA-fA 1 617 t MDJAMENA ) ou7 SARH J [aO CAMEROUND\NU CMEROON 'CENTRAL AFRICAN EMPIRE This map has been prepared by the World Bank's staff exclusively for the convenience of the reoders of the report to which it is attached The denominations used and the bounder s on this map do not imply, on the part of the World Bank and ts accep ance of such boundaries, 60 20. 2,2 2,4 MAY 1978 - 68 - ANNEX III Page 1 CHAD TRANSPORT SECTOR MEMORANDUM Sectoral Program for the 4-Year Economic and Social Development Plan - 1978-81 1/ Transport Infrastructure and Industry Transport Tnfrastructure A. Importance nf the IbihsPtnr A number of reasons contribute to t-he seriusness of transport problems in Chad. These are partly geographical: the country's large size and the country's distance from the sea, and pavtly theu sterm frnm fiutiirp planning objectives; the need for free movement of people, goods, and in- formation In th.Le dLevLelop-F-ment Of a market-type eco- from an agriculture and livestock-based economy, requiring commerce between regions with complementary productions, and facilitation of trans= port between markets and centers which process primary goods. B. Envisaged Investment Program Road Infrastructure 2. The current situation is characterized by a network of roads, largely unpaved, which cannot carry heavy traffic, a lack of inter-regional links, and unreliable external trade routes. To improve this situation, the investments in the short-term should include the following elements: (i) equipping and operating of brigades for maintenance of existing roads; (ii) rehabilitation of priority routes to provide permanent links between development centers, namely: (a) construction of a heavy-duty axis between N'Djamena and southern Chad (Guelengdeng-Bongor-Lai-Doba road); (b) rehabilitation of a feeder road between the northern bank of the Lake, south Kanem, and N'Djamena; (c) improvement of the links between N'Djamena and Abeche, and Abeche and Sarh; 1/ Excerpted from "Resumes Succints des Programmes Sectoriels Inclus dans le Plan QuAriennAl e Dveopnement Fconomique at Social, 1978-81": Ministry of Economy, Planning and Transport; N'Djamena, Chad; March 1978. - 69 - ANNEX iiI Page 2 (iii)L construction of hleavy-duty paved roads between the- Ch,,ad.ia-n network and the Cameroonian (Moundou-Guidjiba road) and Nigerian (Kousseri-Maiduguri and Chari River Bridge at N'Djamena) rail terminals. Air Transport Infrastructure 3. Although the national network of airports is sufficient, the air- strips are poorly designed and the ground equipment is too inadequate to allow development of all-season passenger and freight traffic. The air transport infrastructure program should be designed to: (i) reduce the insufficiencies of the road network, because the country's size is so great that roads could only become a factor in regional integration after a rather long time; and (ii) ensure that air transport plays an appropriate role in the movement of people, mail, and freight (mainly perishable and high unit value items). 4. The envisaged investment plan includes: (i) lengthening of resur- facing of runways of national interest; (ii) equipping airports of national interest with the minimum ground and air navigation equipment needed to ensure safety; and (iii) eventual construction of two international airports outside the city limits of N'Djamena and Sarh. Inland Waterwavs Network 5. The dvlnpment of T.Lcp Chad nnders, exnloitatinn of nil raerves in Kanem, irrigation development along the rivers, and future regulation of the Logone river are factors which are renewing intereSt in fluvial nnd lacustrine transport. Foreseeable medium-term investments would be: (i) acquisition of equipment for dredging and cutting aquatic vegetation to allow permanent navigation int m portant channels (Bol, Chari delta); (ii) marking of maintained channels; and (iii) port infrastructure: jetties, loading equipment, ware- houses, etc. C. Underlying Principles and the Proposed Action Program Principles 6. Maintenance and improvement of the economic infrastructure should be carried out according to the following principles: (i) maintain in its current condition the existing infra- structure; - 70 - ANNEX III Page 3 (ii) improve the present transport infrastructure as far as possible within the available means; a (iii)L realize important projects in strict order of priority as selected by the Government, and not according to the preferences of external sources of aid; (iv) use to the maximum national sources of financing through a national investments fund and consider external -aid, although an important element, only as a complement to the national effort; (v) use, as much as possible, local resources; and (vi) mobilize the population to support public works programs. Action Program 7. With regard to the national investment budget, it would be necessary: (i) to reserve a large portion of investment budget for infrastructure; (ii) to finance recurrent costs as part of the operating budget (future investments should be chosen in accordance with the ability to pay recurrent costs); and (iii) to exempt local and imported materials used for construc- tion of roads and structures, from local taxes (OFCA) and import duties and taxes, respectively. 8. Agencies responsible for maintaining infrastructure should be provided with financial resources outside the general budget. Entities such as the Road Fund should he nrogrammed to follow a Dolicv of financine investments from internally generated resources. A state organization to construct roads by force account (toffice das rou) and anothpr organiza- tion to maintain navigation channels should be created. 9. A sufficient volume of public works, more or less constant from year to year, should be generated to interest construction firms to maintain equipment and personnel within Chad, and to promote competition in the con-- struction industry. 10. A policy of social pricing for transport of passengers and freight should be implemented in order to develop internal air transport. - 71 - ANNEX III Page 4 Transport Industry A. Road Transport Current Situation 11. Most transporters, in particular all large firms, are members of the Cooperative des Transporteurs Tchadiens (CTT). Only small transporters engaged in local transport are not affiliated with CTT: (a) Number of CTT's Active Members: 455 (Approximately) (b) Number of Trucks Owned by CTT members: 250 (5-15 tons) 340 (over 15 tons) Some members, however, do not register all their trucks with CTTe CTT pri marily includes small transporters (single-truck ownership) and a few large transpor ters. L .%.Role of CTTMV 12. CTT distributes freight, prepares accounts, does billings and pack- ing for its members, and provides advances from its treasury. It acts as a trade association and prepares and discusses tariffs with the Government on behalf of its members. The transporters provide and maintain their own equipment, and provide for their own insurance. Although subject to a more in-depth study, the regulated transport tariffs appear, at the present time, reasonable. Passenger transport by road is not organized. The Government's Directorate of Transportation (DT) is not equipped to administer and regulate the transport of freight and passengers. Action Program 13. CTT should continue to retain its current functions, but it should improve its operations to provide best services possible to its members and to serve the national economy. 14. It is necessary: (i) to provide DT with the means to regulate and control the transport industry, particularly, the resources to collect and analyze data on the vehicle fleet, freight volumes, transport costs, and tariffs; (ii) to provide technical assistance and personnel training to transporters within the framework of CTT; (iii) to organize and regulate inter-urban passenger transport; and (iv) to oversee that shipments arriving in Chad or being sent from Chad are in good condition. B. Air Transport 15. It would be necessary: (i) to provide the infrastructure needed to allow the deVelopment of fficient it p (ii) to provi Air Tchad with an aircraft fleet adapted to the air transport demand and the avalale infrastructure; --A f4% ad (iii) toeu regl-a e to 6Ai Tehad for services provided to the Government. - 72 - ANNEX III Page 5 16. The tariff structure should be such that it would permit the amor- tization of the new aircraft fleet and also help in increasing the demand for air transport. C. River and Lake Transport 17. Although river and lake transport is of a seasonal nature, it would be useful to have an inventory of equipment used- freight transported, tariffs applied, and to study the prospects of the development of water transport, especially between N'Djamena and theLk - 73 - ANNEX IV Page 1 ROAD PROJECTS FINANCED BY DEVELOPMENT AGENCIES World Bank Activities in the Transport Sector A. Past Operations 1. Bank Group's past operations in Chad's transport sector have con- sisted of two development credits. In addition, IDA has participated in Rural Projects Fund containing elements of road improvement and maintenance, and the Sahelian Zone Project which contains two transport sub-projects, namely the construction of garages for vehicle maintenance, and rehabilitation of air- strips. The proposed IDA Third Highway Project will be the latest Bank Group transport project in Chad. Highway Maintenance Project (IDA Credit 125-CD) 2. This project, which began in 1968, provided a five-year maintenance program', preinvestment studies of the Djermayo-Djimtilo road, and a country- wide traffic counting program. The project was substantially completed by the end of 1973 about one year behind schedule. The maintenance program fell short of achieving its-physical targets as a consequence of the prolonged drought and lack of sufficient funds. Personnel training to support the maintenann prnoram was not narripd out- due to the cot of rnnin1tant' proposals being too high, and the detailed engineering of the Djermaya- Djitil o road ws "nt undertakean, beifngr considred nreaQtu The surplus credit thus accruing was used to supplement a comprehensive training program under the Second Highway Project. Although the project was not an outstanding success, it promoted a policy emphasizing road maintenance and the development of feeder roads as priorities. (Effective Date: 121 "9 losing Date: UL~~~~~~~~~~ ~ ~~ I-U~ L.LU U~ 9LL L L.~ %C.LL.L.LV LJL. i ±± ~ JJ L. 12-31-77). Second Highway Project (IDA Credit 490-CD) 3. This project started in 1975, comprising a five-year program of improvement and maintenance of feeder roads in the cotton growing areas, reconditioning of ferryboats and their interim maintenance over a 3-year period, two years' traffic counting program, a training program for DPW staff, preinvestment studies for about 120 km of cotton export roads, a feasibility study for the replacement of ferries, and technical assistance for a road transport industry study. 4. Project implementation is about ten months behind schedule. Pre- investment studies were completed, but detailed engineering studies for the roads were not implemented as one road was not economically justified, and the second was contingent upon construction of a soap factory which was cancelled by the Government. The improvement and maintenance of cotton feeder roads is proceeding satisfactorily, with primary emphasis on improving drainage structures. IDA and the Government have agreed to include in the proposed IDA - 74 - ANNEX IV Page 2 Third Highway Prolect about US$400,000 to complete the Second Highway Project. (Effective Date: 03-07-75; Closing Date: 06-30-80). Rural Projects Fund (Credit 664-CD) 5. A sub-project in this credit is concerned with minor road drainage works and selective regravelling of about 1,200 km of feeder roads- mainly in the cotton zone, employing low capital methods. (Effective Date: 03-02-77; Closi ng Date: 03-31-80)o Sectoral Content of Bank Lending in Chad 6 'T'he sectoral. c n of the past IDA p in. Chad up to June 1978 is given below: Development Credits US$ millions Percent Agriculture and Rural Development 36.6 71% Education 4.9 10% Transportation 7.6 15% Drought Relief 2.0 4% Total 51.1 100% B. Assessment of Past Highway Operations 7. There have been a number of tangible gains in the decade (1969-78) of Bank Goup involvement in Chad's transport sector. The Bank's emphasis on maintenance of existing infrastructure as opposed to new road construction is beginning to yield results. Of the external subventions in the trans- port sector, all, except one, are directed to the maintenance of the existing transport network. The Government has begun to appreciate the need for ear- mArkina findq for road maintenance. To this end. the Government intends to establish a Road Maintenance Office with financial autonomy. Although the source of revenues has not been identified, the Government aims at augmenting Road Fund revenues from about CFAF450 million at present, to CFAF1.0 billion by 1982. The process of Chadianization of the nihlic works administratfon has been successful. The Government has gradually assigned Chadian engineers and techniciansto sen4io leve posii ons. Except for one, all supervisory posi- tions are now held by Chadian nationals, who are, however, assisted by French LCII1CdL ~ J l ~.dLOL' U t.LLut sbprfe onl ehncin technical assistants. DPW plans to sustitut su rfSsinltchiin by trained engineers as subdivision chiefs, as soon as qualified candidates become available. About 30 Chadians are receiVing technical training abroadL (Germany, Ivory Coast, Senegal, and USSR) at various levels, and are expected to return to Chad during 1978-79. There is still a shortage of trained Chadian engineers in the area of highway engineering and planning. Provisions for this type of training should be made a part of future projects. It would - 75 - ANNEX IV Page 3 also be necessary to make Government salaries compatible with remunerations in the private sector, to serve as an incentive for returning qualified staff to serve in the public sector. 8. The major shortcoming of the Bank Group's involvement in the transport sector has been the neglect of institutions. Except for a training program for DPW staff aimed at improving mechanical skills, sufficient emphasis has not been placed on creating institutions that could optimally utilize the country's limited resources. Another failing has been .the preoccupation with the generation of a lending program rather than the development of a planning mechanism that would have led, by itself, to identification of suitable proiects. This is reflected in the "piggy-back" preinvestment studies that were saddled on both of the IDA highway projects in Chad. Unfortunately, none of these studies materialized into projects, whose implementation could be economically justified. The primary sectoral contribution made under the IDA nroiants were two traffic rntintfno rnarams_ and thp road tranqnort induqtrv situdy.. The road transport industry has been a worthwhile effort. It pointed to a numhpr of imnrovments that -ould contribuite t-n Pfficiant road transport operations in Chad. Implementation of these proposals could have a signifi- cantly higher impact on the transport sector than measures aimed at the physical improvement-of the infrastructure. 9. A classification of IDA credit funds according to their actual use under the two h-ighWay -prOjeCts is_ give-n be low: ULUJ. LLI LW DL~i~ r,.L VJ~ =~ uL eU.LU Actual USe (.LL U$ m.L.Li..LUsJ Equipment, Materials Pre-Investment Planning & Training & and Civil Works Studies 1/ Technical Technical Assistance Assistance Credit 125-CD 3.60 (95%) 0.18 (4%) - 0.02 (1%) Credit 490-CD 1.95 2/ (56%) 0.46 (13%) 0.06 (2%) 1.03 (29%) Total 5.55 (76%) 0.64 (9%) 0.06 (1%) 1.05 (14%) The share of pre-investment studies in the use of credit funds for the two highway projects has been considerably higher than investment for sec- toral planning. Given that the pre-investment studies in Chad have not led to project investments is enough proof that proje ct feasibility studies outside of their sectoral content may not be productive in generating projects. As a result, the Government has become cautious and unreceptive to studies that are not financed on a grant basis. 1/ Includes traffic counting programs. 2/ Includes operating costs and technical assistance for project execution. - 76 - ANNEX IV Page 4 Road Project Commitments By Other Development Agencies 1/ A. FED Program for Paved Roads 10. During 1968-71, about 250 km of paved roads were constructed under FED financing. However, due to limited maintenance, these roads are in poor condition. At the Government's request, FED has agreed to finance the recon- struction and improvement of paved roads on a grant basis, and CFAF 750 million (about US$3 million) have been -earmarked for the period mid-1978 to mid-1980. FED is expected to finance the purchase of equipment and materials, and all operating costs (excluding salaries of local personnel), estimated at about CFAF 54 million (about US$0.22 million), inclusive of some taxes. B. CILSS/UNSO Project for Improvement and Maintenance of Secondary Roads in the Sahelfan Zone 11. Following a 1976 TJNSO-finanred study covering all Sahelian coun- tries, about 470 km of secondary roads and tracks were identified in Chad for improvemn A m These roads, which carry a very low traf- fic volume but were given high priority by the Government, are the follow- ing: N'G oura-Ati 233 km Ati-Ifenat 63 km . - 20 I_.. iDankela-Yao3 Massakori-Moussoro 135 km TOTAL 470 km The proposed program would last about seven years, and construction would be carried out by force account with consultants' technical assistance. The estimated cost is about US$14.4 million (in 1976 prices), and would include all capital costs, recurrent costs and salaries of local personnel. UNSO financing would be on a grant basis. The Government's contribution is limited to providing a highway engineer, a surveying team, and nominal par- ticipation in recurrent costs. The total Government contribution is esti- mated at about CFAF 10.9 million (about US$44,000) per year. The Government would provide land for an office building and a garage in N'Djamena and other services. 12. UNSO funds for this project are presently about US$4.4 million, which would be sufficient to purchase equipment and to finance the cost of improving about 120 km of the N'Goura-Ati road (Phase I of the program). Meanwhile, UNSO and CILSS will assist the Government in obtaining additional funds required to complete the program. 1/ A- of Ua-h 1078. .;U 00 11- - _11 S - - 77- ANNEXA IV Page 5 C. USAID - Financed Training Unit 13. USAID would provide a mechanized production/training brigade to train DPW personnel as part of the proposed IDA Third Highway Project. The total cost of the proposed four-year training program is currently estimated at about US$7.9 million, net of taxes, but including contingencies. This amount includes all capital and recurrent costs for the training unit and center, consultant's fees and trainees' salaries. The training brigade is expected to regravel about 400 km of roads. The Government's participation would be limited to financing fuel taxes; equipment and spare parts would be imported duty free. USAID financing would be in the form of a grant. '70 - 78 - ANNEXirA V Page 1 CHAD TRANSPORT SECTOR MEMORANDUM ANNEX IV - RURAL ROAD NEEDS IN CHAD 1/ Introduction 1. Chad is faced with very difficult transport problems but frequently emphasis is placed on the distance Chad is from ocean ports - about 2,000 km on the average. In fact the transport of a ton of produce to these ports by the cheapest route may he less (at a rate of about CFAF 14-18 per ton-kilometer) than internal road transport (which may be CFAF 25-40 per ton-kilometer) and the distances within Chad are considerable. Thus the Government places con- siderable emphasis on reducing these internal costs over which, in principle, it should have greater contro1 than over international transport. 2. One of the reasons for the high unit t-ransnort costs in Chad is the poor standard of the road system both in terms of maintenance and initial construction. This situation is further exacerbated by the high cost of fuel. vehicles, and spare parts. 3. The Government with support from the Bank Group and other donors has in recent years made considerable efforts to ameliorate the road system especially in the important cotton growing areas of the south and the south- west. These efforts have resulted in significant improvements. 2/ However, a great deal remains to be done and certain areas of the country which are scheduled for development are in need of improved trapULLaLion facilities. Rural Access/Feeder Road Needs 4. The Government has agreed to prepare a detailed dossier of identi- fied access/feeder road priorities. However, an outline list of projects is as follows: 1/ Excerpted from Mr. Bonney's (ERMWA) Back-to-Office and Full Report of July 11, 1977, subsequent to an identification mission for a possible rural roads project. 2/ Existing improvement efforts cover about 10% of the total cotton feeder road network. although these roads carry about 50% of the cotton-seed production. -79 - ANNEX V Page 2 (i) Cotton Feeder Roads While considerable work still needs to be under-taken in the existing cotton growing areas, the feeling of COTONTCHAD is that the greater part of it should be achieved under their own program and those programs contained within the Second Highway and Rural Project Fund Projects and the proposed Third Highway Project. However, it is the intention of Government and COTONTCHAD to boost cotton production to 200,000 tons per annum. To do this about 50,000 ha of new areas will have to be brought into production and these areas will certainly require the construction of feeder roads and possibly secondary road connections. Development of these roads may be included in a future feeder road project. It is estimated by COTONTCHAD that, on average, two-thirds of expenditures in past and present cotton road projects has been spent on drainage structures. (ii) Feeder/Access Roads for Lake Chad Polders Area This is the area of the Lake Chad Polders Project (Cr. 592-CD) the development of4L which is under the control of the autonomous agency Societe d'Amenagement du Lac (SODELAC). When in full development it is expected that this area will produce between 20,000 and 30,000 tons of agricultural produce per annum; plus there are also rich deposits of soda-ash. The Lake Chad Polders Project (in which US AID is.also participating) contains a small element (US$35,400) for access and interior roads in the relatively small development area. In view of the nature of the soils (aeolian sands in many areas) only small improvements could be justified and the above funds may be sufficient for this. An engineering assess- ment of the situation is desirable. The main need as expressed by SODELAC is for a good all-weather road link from the area of Bol to Massakory (the most recent rough estimate of the cost of this is US$32 million). The UNSO Feeder Road Rehabilitation and Main- tenance Programme (RAF/76/902) plans to improve the Moussoro- Massakory section of 135 km, while the African Development Bank (ADB) is financing the final design of the Djermaya-Djimtilo road (originally included in the First Highway Maintenance Project) to the southern shore of the Lake Chad which, if constructed, will complete the missing link in the road cum water route between Bol and N'Djamena (dredging of the channel at an estimated cost of US$400-500,000 is expected to be carried out under USAID financing). The other possible alternative to serve the area could be the use of specialized freight aircraft. Although the stated main need at present is for long distance access, future feeder road needs should be examined. - 80 - ANNEX V Page 3 (iii) Access Roads for Centre de Developement du Lac Fitri Lake Fitri is located in the Sahelian belt about 380 km east of N'Djamena. The main road leading to the region of the Lake will be subject to an imnrovement sRhemp crried out by a road brigade financed by UNSO. Few details were available on the content or status nf the project, which is aimed at vegetable and . cereal production using lake and ground water. (iv) Projects Prepared by Ministere du Developpement Agricole et Pastoral A project has been prepared by the studies section of the Mi nistry 'For several rural development supoet i-atn located in the vicinities of N'Djamena East, Ati, Abeche and Adre. These are all located along the main east-west road (also serving the Lake Fitri area) and are stated to require Doth -internal feeder roads and feeder road connections with the main road. These cantons, particularly Abo Goudam and Adre, are als aa where Lhere is an identified need for small earth dams to aid in recharging ground water supplies. Finan- cing may be sought from the European Development Fund and IDA. (v) Milk Products and Firewood Proiect in N"Djamena Region Both the Centre de Modernisation des Productions Animales (CMPA) and the Ministere des Eaux et Fores are interested in the area centered on.NoDjamena. A possible project for the collection and processing (a milk processing plant already exists) of surplus milk (currently about 1:5 million litres/ year) and the controlled production of .firewood and charcoal (currently about 131,000 tons per annum) would require improve- ment and extension of feeder roads in the area. Some studies financed by the UNDP/FA0 and FAC relating to this area have already been carried out. (vi) Gum Arabic Project The Ministere des Eaux et Forets has proposed a project for the development of wild gum arabic in regions between N'Djamena and Massakory (already served by an existing main road) Ati South, Abeche and Adre. Feeder roads would be required to serve the onllecting ceantres. (vii) Rural Prolects Fund (Cr. 664-CD) T1, n P--4e,+ -.t4 nI, 4 -1 ...0 4 1, A --l nnin - 4 -v4 0 0 Ts roj e ct -hich includs the en o perimetres along the Chari River and development of "bas- Ionds" in the south of the country already includes a feeder road sub-component. However, the authorities considered that the road needs of the irrigated perimetres and "bas-fonds" should be examined in greater detail. 81 - ANNEX V Page 4 (iii) Access Roads for Agricultural Development in the Mongo Area Situated about 400 km east of N'Djamena and 150 km south of Ati on the main east-west road Mongo is reputed to be one of the main cereal growing areas together with considerable potential for ground-nuts. However, access is difficult and expensive due to the state of roads in the region. (ix) Moyen Chari Karite Project A need for feeder roads for the collection of Karite and its transport to a processing plant has been identified. 5. In addition to the areas of interest mentioned above the are considerable lengths of secondary road which officials indicated as being of considerah1e impornnrc if development nf sonmem ragns isto take place. At present these roads are not included in any program. Although such roads for dmiistativ fuctin ^ul be classified4 as secondary;- in practicethe also serve as collectors and would require improvement to probably no more than feeder standard. Therefoe,the shud. be iudd in any rural roasA study. 6. The priority areas for feeder access road improvement are, in addition to the Cotton Zone, located mainly in the Sahel Region and widely separated. However, a large number of people live in the Sahelian belt (approximately 1.2 million or 30% of total population) and their development problems should obviously be examined and one of the major constraints to socio-economic development is transport access. Assessment of Chadian Assistance for a Possible Rural Roads Project The capacity of the DPW in Chad to supervise and to carry out road works is very limited. This is due not only to its limited budget and little operational equipment resources but also the deficiency in qualified and ex- perienced staff. In addition the administrative and financial control system is cumbersome and time consuming. Unless considerable changes are made in operational methods and additional staff are made available it is difficult to visualize DPW carrying out additional work. This is already clearly demonstrated by the need to employ COTONTCHAD on feeder road construction and maintenance. Thus it is anticipated that in a rural roads project, institu- tional problems will require particular attention and a large element of technical assistance will be needed. 8. Although COTONTCHAD has been undertaking the existing programme of feeder road improvement and maintenance relatively efficientlv they are restricted to operating in the cotton zone. Moreover if COTONTCHAD were exDected to carry out additionAl rnne work-, it i eihiih-fiil if thair n supervisory resources could meet the demands. - 82 - ANNEX V Page 5 9. ORT which has been responsible for the training programme for DPW and SODELAC staff under the Second Highway Project (to be extended under the Third Highway Project) has, despite difficulties in obtaining equipment and candidates for field training, produced creditable results. The opinion of ORT staff is that with the increasing number of brigades needed for the planned road works, the availability of trained staff is inadequate, and also the staff already trained have relatively little practical field expe- rience* Ohisnlv the nuestion of briode stAff shall have to be kent under constant review. 10. Conflicting views were obtained on che question of labour intensive operations and village participation in projects. As usual in C DPW insisted that village participation would be virtually impossible and also in- efficient. On the other hand, staff ofP Genie 'RUral (Resonsbl toth M istry of Agriculture) and US CARE (Chad) who had first-hand experience of village participation maintained that approached correctly the system worked well for site-specific operations. The US CARE experience is particularly interesting involving a programme to construct about 100 8-ton grain silos over a three-year period. The silos (which have a reinforced concrete base, mud walls and thatch covering) are now not only built largely by the vil- lagers themselves (assistance is given by Chadian craftsmen in constructing the reinforced concrete base) but the entire operation is administered and supervised by Chadian staff: in fact, the use of Chadian project super- visors is stated by CARE staff to be critical to the operation. A school not far from N'Djamena was also being built largely by villagers. There is certainly greater immediate incentive for villagers to contribute to building grain stores, wells, schools and markets rather than roads, unless they are short access roads to particular villages. There is, however, sufficient interest in Chad to warrant a rural roads study looking closely at low tech- nology operations and villager participation. Also, the design of a combined project of road improvement and village amenities may be a worthwhile method of stimulating local participation. Proposed Study for a Rural Roads Project 11. Previous feeder road sub-projects in Chad have been located in the Cotton Zone which has already been relatively well developed and, hence, traffic flows have been relatively large and the road projects have been st-ifi1d largelv on vehicle onerating cost savings. Undoubtedly, similar roads still exist, and, in ongoing and future projects, the same vehicle operating cost savings approach can he iid. However_ a large nronortion of the Chadian population lives in the relatively-poor Sahelian belt in Jidel-separated AZones, -hr iher- surfacea or ground water Is available .L U Ly --k i --- - - -- - - in sufficient quantities to sustain life. It is an important part of Gov- ernment policy, to promote the development of these regions. 12. Development of the Sahelian belt will present a number of diffi- culties. The most important of these are: - 83 - ANNEX V Page 6 (a) the region's proneness to wide variations in precipitation; (b) the relative isolation of some of the potential development zones; (c) limited Government administrative and support services; and (d) the general absence of adequate road-making materials. Because of these problems, road projects in that area may have to contain elements not normally included in such projects, and consequently the study will have to examine these elements. For example, the study may have to look at alternative modes of transport for long-distance haulage, or to compare costs of road construction with the cost of acquiring and operating special vehicles. Similarly, it may, in order to obtain acceptable use of resources tied up in construction brigades, be desirable to equip these brigades to carry out additional works, such as building construction or the construction of small earth/rock dams while operating in certain areas. 13. While, for example, in the Cotton Zone, it may remain sufficient to evaluate many road 4mprovementson the bas4 af vhicl a ng4 cost savings, in many other areas greater emphasis will have to be placed on either value-added benefits or transport savings in relation to surplus and deficit areas -- which may be the same area over time. 14. In relatively isolated and poor areas, it is possible that vil- A - - - - - - - -- - I - - - - - c -! _ I Lager partiCipation sLUUlU aUU gLar iMPULU e if a project is LU be viable. Because of this, it is probable that a study will have to pay par- ticular attention to social and anthropological factors and will not only be concerned with the comparison between the economic costs of equipment- intensive and labor-intensive operations. Recommendations 15. There clearly appears to be a sufficient need for feeder/access road improvements in Chad to justify detailed study. Also, many of the development areas receiving consideration are sufficiently far removed geographically from the existing feeder road operations to warrant separate consideration, even if a new demand for feeder roads in the Cotton Zone is likely to be identified. 16. Active local participation in the implementation of the project in some form may be desirable if a viable project is to be evolved and thus a careful socio-anthropological element may have to be included in the study. Local participation need not be restricted to road works (which we know from experience can be difficult) but could also be concerned with small ancillary projects such as storage, wells, markets and small earth/rock dams. Possible road improvement brigades may also be designed to assist in these ancillary works and thus yield a greater return when working in relatively isolated areas. Examination of these opportunities should be included in the study. -84 - ANNEX V Page 7 17. It is unlikely that the Chadians will be able to contribute very much either physically or financially to the proposed study. Therefore, with the exception of a full-time Chadian Liaison Officer and soils laboratory facilities, the proposed study would have to be fully financed externally. - 85J - ANN14EX VI CHAD TRANSPORT SECTOR MEMORANDUM Checklist of Maior Sector Issues 1. Economic justification of transport investments. 2. Recurrent expenditures for road maintenance. 3. Regulation of the road transport industry. 4. Development of domestic air .transport. 5. Transport planning and coordination, training needs. 6. Assistance to domestic construction industry. 7- TT nf 1Ahnr-hQPd trhnoloiPs. - 86 - ANNEX VII CHAD TRANSPORT SECTOR YMORANDUM Bibliography of Bank-Sponsored Economic Studies, 1969-78 Study Dae Dare Dace OuUWu=ut aLoVe Started Completed Reviewed Djermaya-Djimtilo Feasibility 1-69 12-71 4-71 The interim report was revised after Road initial review. Based on study recom- mendations, the road was not economi- cally feasible and detailed engineering was not carried out. Actualisation des Traffic and 1-69 8-71 not No action required. Comptages Routiers origin Destine- known tion Study Route Krim-Krim; Feasibility 9-75 7-76 7-76 The Government was informed of the Route Gounou-Gaya- Study & Bank review of the study and the Kelo; Pont de Tagal 10-76 comments of the Bank Staff were relayedto the consultant. Campagne de Comptages et d'Enquites de Traffic Study 7-76 4-78 6-78 No action required. Circulation Road Maintenance Pre-investment 11-76 2-77 2-77 Used to develop the road maintenance Study Study program for proposed third Highway Project. DiA2noscie Sur LSub-Sector Study 8-76 4-77 4-77 Used to develop recommendations L'Industrie des for reorganization of the road Tranaporss Rouciers transport industry. au Tchad Etude Priliminaire Feasibility 9-75 4-76 7-76 Bank recommendations and analysis of de Neuf Bacs Study & the study were transmitted to the Govern- 11-76 ment. Study used to design ferryboat component of proposed Third Highway Project. Evaluation de 1'In- .usrs e -'% Ian.. an-Scor 4-77 6-77 7-77 Study by USAID Bank consultant as part ports routiers au Evaluation and of proposed Third Highway Project; Tchad(in collabo- Apptaisal Study' transmitted to the Government by USAID. ration with USAID) 0,7 - 87 - AXkTVT% 17TTT .UANEX VIIIL Page 1 CHAD TRANSPORT SECTOR MEMORANDUM General Bibliography World Bank Publications 1. "Appraisal of a Highway Maintenance and Engineering Project - Chad"; Report No. TO-645a, July 3, 1968. 2. "The Transport Sector in Chad"; Report No. AW-13, Nov. 14, 1969. 3. "Anraisal of a Second Highwav Proiect, Chad"; Renort No. 381a-CD- May 28, 1974. 4. "Chad: Development Potential and Constraints"; A World Bank Country Economic Report, July 1974. 5. "(,- Aa?4 ,,-1 'Zgtv Mam*-nA-m1-No. 1 AIR-rn r1 1 A 1977. 6. "ChaLigw ofMChaint Va.Ienance Project (Careadit R Ce ) Project Performance Audit Report"; No. 1883, Feb. 2, 1978. 8. "Chad Proposed Third Highway Project"; Report No. 1834a-CD, March 19, 1978. Government Publications 1. "Le Parc Automobile de la Republique du Tchad"; Service de la Statistique Generale, Chad, August 1968. 2. "Atlas Pratique du Tchad"; institut National Tchadien pour les Sciences Humaines; 1969. 3. "Plan de De'veloppement Economique et Social pour la Decennie 1971-80"; Ministry of Planning and External Assistance, Chad, March 1972. 4. "Code de la Route"; Bureau d'Etudes, Documentation, et d'Industrie, N'Djamena, Chad, June 1973. 5. "Annuaire Statistique du Tchad"; Directorate of Planning and Development, Chad, Volume I, 1974, and Volume I, 1975-76. 6. "Comptes des Entreprises: Exercice 1975"; Directorate of Planning and Development, Chad. - 88 - ANNEX VIII Page 2 7. "Commerce Exterieur Controle du Tchad: Statistiques et Commentaires"; Directorate of Planning and Development, Chad, 1975. 8. "Evaluation Economique et Financiere: Guelengdeng-Doba, and Moundou Doba-Sarh"; Directorate of Planning, Chad, March 1975. 9. "Bulletin de Statistique", Quarterly Bulletin of Statistics, Directorate of Planning and Development, Chad (Latest Issue No. 223, 4th Quarter, 1976). 10. "Programme Global d'Action Economique et Sociale: Document Preparatoire Pour l'Elaboration du Plan Quadriennal de Developpement Economique et Social - 1978-81"; Ministry of Economy, Planning, and Development, Chad, September 1976. 11. "Memorandum on the Implementation of the Bongor-Lai and.Moundou-Guidjiba Road Project"; Ministry of Economy. Planning, and Transport, Chad, July 1977. Other Sources 1. "Lake Chad Basin - Transport Survey"; Lake Chad Basin Commission and USAID, October 1970. 2. Marichal, G.E., "Bituminous Stabilization and Pulverous Soils in Northern Nigeria nd Ad" VI-Alorld w-ighwa Conr-ference, Montreal, Canada; IRF, October 1970. 3. Nelson H.D. et al.; "Area Handbook for Chad"; DA Pam 550-159; United States Government Printing Office, 1972. 4. "Projet d'Amelioration des Pistes Cotonnieres"; Republic of Chad and FAC, May 1973. 5. "Etude de la Route Bongor-Lai; Rapport Geotechnique et Rapport Hydrologique"; Republic of Chad and FED, September 1974. 6. "Construction de la Route Bongor-Lai; Rapport de Synthes et Appel d'Offres"; Republic of Chad and FED, September 1974. 7. "Evaluation des Avantages Economiques de la Liaison Routiere Guidjiba- Moundou"; Volumes I and 2, FED, Republic of Chad and United Republic of Cameroon, 1974. 8. "Route Moundou-Frontiere du Cameroun", Republic of Chad and FED, 1979. 9. "Route Gidjiba-Frontiere du Tchad" - United Republic of Cameroon and FED, 1974-75. - 89 - ANNEX VIII Page 3 10. "Etudes Visant a Determiner la Contribution que l'Aviation Civile Peut Apporter au Developpement des Economies Nationales d'Etats Africains: Tchad": ICAO/UNDP. April 1976. 11. "Le Secteur Exterieur du Tchad: Analyse et Recommendations"; UNCTAD, Geneva, June 1976. 12. "Programme d'Amelioration de Routes", UNSO, June 1976. 13. "Cartographie des Pays du Sahel", Ministry of Cooperation, France, 1976. 14. "Etude Disgnostique d'Entretien Routier au Sahel"; Tome 9, Tchad, CILSS, Ju.Ly L1U. STATISTICAL ANNEX CHAD =SCIAL IICATORS DATA SHEET LAND AREA (THOU KM2) ------------- CHAD REFERENCE COUNTRIES (1970) TOTAL 1284.0 MOST RECENT AGRIC. 520.0 190 197t. ESTIMATE MALI BOLIVIA CENTRAL AFRICAN MPIRE** GNP PER CAPITA (US$) 70.0* 90.0* 120.0/0* 70.0* 220.0* 17o.0 POPULATION AND VITAL STATISTICS POPULATION (MID-YR, MILLION) 3.1 3.6 4.1/a 5.1 4.9 1.6 POPULATION DENSITY PER SQUARE KM. 2.0 3.0 3.01& . 4.0 4.0 3.0 PER SQ. KM. AGRICULTURAL LAND 6.0 7.0 8.0/a 12.0 17.0 27.0 VITAL STATISTICS CRUDE BIRTH RATE (/THOU, AV) 45.8 44.8 44.0 49.6 44.4 45.4 CRUDE DEATH RATE (/THOU,AV) 27.6 24.6 24.0 27.8 19.7 26.4 INFANT MORTALITY RATE (/THOU) 160.0/a ** .. 120.0 154.0 LIFE EXPECTANCY AT RTH (YRS) 33.5 37.2 45.3 39.0 GROSS REPRODUCTION RATE 2.4/b 3.0 2.6 3.3 2.8 2.9 POPULATION GROWTH RATE (%) TOTAL 1.5 1.7 2.1 2.2 2.6 2.2 URBAN 6.9 7.1 6.4 4.3 4.2 7.2 URBAN POPULATION (% OF TOTAL) A 7 11.3 13.9 1. 3 30.1 AGE STRUCTURE (PERCENT) 0 TO 14 YEARS 44.7 41.4 41.0/b 49.1 41.9 42.1 15 TO 64 YEARS 52.6 56.0 55.0b,c - 49.3 54.6 54.8 65 YEARS AND OVER 2.7 2.6 44o/b,c 1.6 3.5 3.1 AnE DNDENCY RATO 808 9.6 ow An ECONOMIC DEPENDENCY RATIO 1.3/C .. 1.3/a,d .:/a 1.0/a 0.9/a FAMILY PLANNING ACCEPTORS (CUMULATIVE. THOU) .. .. .. .. USERS (% OF MARRIED WOMEN) .. .. .. EMPLOYMENT TOTAL LABOR FORCE (THOUSAND) 1100.0 .. 1300.0/a 2800.0 2300.0 820.0 LABOR FORCE IN AGRICULTURE (%) 94.0. 90.0 .. 91.0 65.0/b 91.0 UNEMPLOYED (K OF LABOR FORCE) ** ** ** *. 16.0 INCOME DISTRIBUTION % OF PRIVATE INCOME REC'D BY- HIGHEST 5% OF HOUSEHOLDS 21.5/ ** ** .. 36.0/C HIGHEST 20% OF HOUSEHOLDS 44.8 ** ** ** 59.0/C LmEST 2 OF ruuHarSEHOLDS r.f ** ** ** 4.0/c. LOWEST 40% OF HOUSEHOLDS 19.3/d 1* ** ** 3.0/C DISTRIBUTION OF LAND OWNERSHIP % OWNED BY TOP 10% OF OWNERS .. .. .. % OWNED BY SMALLEST 10% OMNERS .. .. .. HEALTH AND NUTRITION POPULATION PER PHYSICIAN ¶1890.0 44400.0 41490.0 2300.0 38120.0 POPLATnM PD 5571Uf.D41N 3860.0 2730.0 1280.0/b POPULATION PER HOSPITAL BED 20/e,g 760.0 1. 1390./b 490.0 460.0 PER CAPITA SUPPLY OF - CALORIES (Z OF REQUIREMENTS) 94.0 89.0 7 92.0 77.0 9.0 PROTEIN (GRAMS PER DAY) 77.0 73.0 6U. 6970 48.0 48.0 -OF WHICH ANIMAL AND PULSE .. 33.0/a 18.8 23.0/C 14.o/d 22.0 DEATH RATE (/THOU) AGES 1-4 * * * ..7.4 EDUCATION ADUUSTED ENROLLMENT RATIO PRIMARY SCHOOL 15.0 32.0 36.0 20.0 71.0 69.0 SECONDARY SCHOOL 0.4 2.0 2..01. 5.0 YEARS OF SCHOOLING PROVIDED 3*0 20.0 5.0 (FIRST .AND SECOND LEVEL) 13.0 13.0 13.0 12.0 12.0 10.0 VOCATIONAL ENROLLMENT (% OF SECONA1Y) ' 1.0 10.0 9.0 40.0 13.0/a 12.0 ADULT LITERACY RATE (%) .. 7.0 15.0 .. 40.0 HOUSING PERSONS PER ROOM (URBAN) OCCUPIED DWELLINGS WITHOUT PIPED WATER (%) ACCESS TO ELECTRICITY (% OF ALL DWELLINGS) .. RURAL DWELLINGS CONNECTED TO ELECTRICITY (%) .. CONSUMPTION RADIO RECEIVERS (PER THOU POP) 2.0 16.0 18.0 12.0 280.0 30.0 PASSENGER CARS (PER THOU POP) 1.0 1.0 1.5 1.0 4.0 4.0 ELECTRICITY (KWH/YR PER CAP) 3.0 12. 1A. 11.0 6.0 4.0 NEWSPRINT (KG/YR PER CAP) 29.0.. *. i.0 SEE NOTES AND DEFINITIONS ON REVERSE 3>о� ' Uа1ви асЬвтv[вв аагад, да[а Сог 19Ь0 гдек го вау )ааг Ьв[sвяа 1959 а� 19Ы, fог 1970 Ьапваа 1968 and_ 1970, аад foc vдле Recane Lc1�.ce bапваа 1977 .од 1973. гн. :глгlд ч.аk веlв тв[hодоlов7 C197G-76 baaL). � 4z+z рвг иР1е. саса ага .�а' '- '- '-'-- -- •а tha'Сеаствl АСт1си Ртрlтя Ьав Ъааа лаlкtед и ва оЬ�асгlvв сотсту for СЬад Sаиива 1е ц a1w 1аадlосkвд buc аг в hlghar 1ave1 о! davalopmant. С8др 1960 1а 1935-57; /b 19�3-Ч Atrlcan рариlасlоа; L ia[1a of рориlасlаа иадаг 15 аад 63 аад cvnt са сослl 1аЬог fогсц /д 1458, �ориlвс3.од; /а 1962; 1f Intludlag аlМvев аад иеlвсадс аикавв 1д баааг•тва[ тадlсаl untвr:: �g Соvвг�адг Ьовр1[а1 еесаЬllе}�enCS on1y. 1970 /а 1966-бб. . � l105'I iPCE77 EStIYA:L: /в 1976; /Ъ 1912: L А8в Втоирв ц-39 тд ЬО вад ovar таврасг3vеlу; /д 7а[1о 1. 7^..i,.A�., .,1ли.. of рориlаСlоа иnдвт 13 аад ЬО аад avez го еос:1 1аЬог `cra; ,� -..'-'-'-: . аад ивlвеис mldvlveв. чвг.т 1970 /в Нве1о of рориlвсlоа иадвг ц ид 6S вод ovoe to соеаl 1аЬот Еагса; /Ъ Соvвгашааt Ьоарlсаl евсеЬ- � - 1LЬогаи: L 1966-бб. g0L_r1+дд 1970 /а Fвс1о oF рориlвсlоа иадвг 13 тд 65 вад avar со сосвl 1аЬог foree: L Ае perceacage оЕ 1аЬог focca !а ®lавааае: �1е PopuLtloa; L 196�-Ьб; L Вапаеа 1963 аад 1970 cha дита[!оа of geaezal � каеоадвгу вдииеlоа vu тадиеад Стов 6[о 4 уаакв, C�YTAAL цАIСА17 1970 L Вас1о о! popuLCloa иадак ц аад 65 вад оик со�сос�1 LЬог foree: /b 2ае?udlag mldulvee аад иаlаеие аитвав. � Н7, Fabruar7 2. 1478 о�пгп'ICпs ог 6ocw. �IUтoPs 2 оиlвеlоа авт аииlед рвлоn - 7ери1всlоа dlvidвd !у eumhar о[ ртяс•:1c1ag Свед .гга (ehou ;т ) io То[в1 - Tocal вигfвеа вги еотргlкlкц lвад вгвв тд 1аlвад rвевл. твlв тд [втвlв gгадивсв аигвве, "[твlагд" от "свг[1tlвд" nитаав, иад гтц. - lсовс гвевас евсlтвсв о[ в4т1си1сиквl вла швд сетрогвгllу ог рвктв- ви:311вq рвлоаавl :1eh егвцlп; ог вкрвгlемв. ' иосlу Сог сгорв, рвяеигаа, авгnе 6 klcehго `вгдаы ог ео 11в 1в11w. ?ооиlвсlоо Раг 4ово1иl Dвд - Рариlвсlов дlvtдвд br питЬат of hoвptcal 'ндв м11вЬ1в 1а риЬlц вдд ptlvaee gваtгвl а� враеlвllквд h<врlгаl тд Q8p оаг uvtea (С5$) - CNP ргг еврl[в ut:lтв[аа ве сипвае авкМв[ рНеи, таЬаЫ1lиеlоа евnевл; ааlидва тпвlа8 Ьотвв and авеаЬlLhтмев .`.ог саlеиlвсед Ьт егов <оаигвlоа твеhод ав vотlд Dвдг асlи (1977-75 ЬввL); сивсодLl год рггггос3и овгя. 19Ь0; 1970 вnд 1973 дасв. . Раг саоlеа еиооlv о[ сеlотlав (; о! гааиlтеталев) - Сотрисад [гт аеогду агlиlчаlгоt оЕ ыс [оод вирРLlвв вvвllвЫ• 1о <оиасг7 Раг сарlсв рег дгу: Pooulвtlое в-д v1св1 всасlвСlс, лвllаЫв •uppLlaa сотргlав д®ввсlе РгодисСlоп, lтроггв lввв вкроrгв. вnд ?oouLaclen imlд-vгвг a111Loe) � и о! ;и1у E1nr. 1t ме аи11вЬL, иатава сhвд7<и 1а scoek; пвс виррllев иеlидв ааlтаl Саад, гидв, ашегссlи •и•а.. of счо аМ-уавг ввсlдвси; 1'�60, 1Y70 тд i973 двса. '- Сгп,д ргrьаа:lп8 аад 1ыа-: 1е д1'cr1„uelwй� п�иlга�ага v.r. : сlrг.д Ьу РАО Ьвввд on РЬЛ1оlоgЕtаl аидв•Еог аотавl вtclvl[y впд ЬавlсЛпсопкtд- Pooul.cion daaaln - Рвг коивга 1а - У!д-jввг popuL[1oa раг аqивга kllamвur � вгlаg вavlromraul стрвгвсиrа, Ьоду иlghu, а8в вnд еи дlвстlМпlоы of (100 hкгаrи) оЕ сосаl вги. _Dориlвеlоо, вед в11w1ng 10Z for vваев ас hошвhоlд 1еvв1. Ро�и1 еlол дмвtn - оаг гашл ia С®р..[ад .а :,,.�.а .ог т< оlга а РР о е! ;г< а!а 'г юг r. -:�-о: 1а с �:-а: с! --г сарl:а вgrlculrunl lвад оа1у. •nвС supPl9�of tood раг'дву; пас виррlу•о£�Еоод 1в да(1ид вя вЬwа; nqulга- тгоса for в11 со.агп£ав авиЫLЬвд Ьу 450е Е<опотЕс 0.ваввггИ 5втоlги р1еа1 всосlвсlс■ Pzwlda for в atnlт® Qlоrваев of 60 gramв оС сои( рлса(а раг дву, вад Сгидв blrtn гвсв овг ciowвnd. агаяа - Агоиа1 11.: Ыг�±а раг N�aad о! 10 °г=_ оЕ аа_1 е= ''ае 'го[е =<С чЬ!<. 10 ' � е"' д S' а'_1 а1д-уавг Рориlвсlоn; иа-уевгавеlгЬтвс£е воеngвв аадlаа !д 1960 вад 1970, ргосаlд; гЬив•вскодвсдв вл lоыггlгhве сhоавно! 75•;гатвИоЕ-соиl рлсвга вад tlvayur rvпаgв вадlец !а 1913 tor еоае гвеме вагlтви. вffi 27 gгов ot ваlmsl ргоевlа вв во ачелgв fot [hв wr1d, ргоравW Ьв РАО Скидв deach гаев Ргг гЬойа.ед, вwлgв - юашl диеhв рвг [hошвад of тlдуиг La [Ьв ТЫтд vetld 7оод $ика+ву. "- _ _ 1о7П ..А f�м- Р.т г пlгв •1е в тп_1о fт�в впfпвl веА т,1г Ргвгвfп пвlк пf fnM гориlвгiоа; гva-y.st '_,_�_"_ а-.-..- �..� 1а 1%0 а-д ' __ '__'е "_'__'_ а_„_� _' '___ °еаа . __ _е _° птпг___ _� _, уавг аvвтаув aedlag 1ac1975 for та[ гаегоt: авеlтвсв. ••.' -- --'- двгlwд Сгот иlтвlа вад риlнв 4n gттв раг дву. п Iаtапг хгсвlln тал (/chw) - лааnвl dueh: о[ lаfлгк иддаг оав уввг of вр DавеЬ гвев (/ehou) аяи 1-. - ллаивl давеЬв рвг саоиевдд Ш аgв group 1=в рвг thousaad 11va Ь1гсЬв. уавл, се еhllдла 1а chla вgв gлир; виQiвагвд ая an tadlcame of _"__'"___ __ -- __ - ^•' ^/ . ^I 11s. впв/п4А_ в ыlтв[гlгlое, ib£кСЬдшшllв flva-yмr awragu eadlny 1а 1%0, 1970 аад 1975тtог двvаlор- 1ag соиаек£и . Едиеа[1оа • 4товв :вогодисt:lое леа - �игвgв тдеbег ot 11w двиgЬевn в vaman v111 Ъиг Адlиасед еатоLlдвае гвсlо - Ргlтал echoml - 6аro11твас of в11 вgвв и рвг- ._ .__ __�_, ___✓....-...- ...,м_ 1_г .ь. ...,..�..,г.. пт...пе_ .ичме_ifie егоике оС оriыл СеЬоо1-ви oovuleelon: Lмlидев ehllдгм вг.вд 6-11 vввл Свгг111q�гвсиргшшllу•11тв-уиг виквgи�вадlц 1д 1960, 1970 аад 1973 Ьие вд)шевд !ог dlftarгоe laagchв ot Pr7aiery адисаеlо¢; Еаг councslu vlch Еот дwвlорlпу еоиасгlва. иnlвалвl вдиевсlаа, вакаllтаае тау ексид 100Z аlмв ватв pup1L вга Ъе1оч Рериlасlоа ягwдl гасв С) - cocsl • Сотроиод вааивl `roreh твси af т1д-уввг ог abow [hв ofC1c1a1 вthool вgв. п_<_п i_оьл-т ..,л tо7пЛ5__ лдlwеад earoLlmea[ :веtо - saeondвn вehool - CamvucW вв вЬоvа: нcwdan_ �ыу,,..-ьi,.� С � Р_л_.1всlод aiort:Ь-гвл f') - игЬаа • Сотрисад 11Ув бrarch гвеа о! соиl вдvеасlоа гааиlгав •с lвис four уаал оЕ aDPtoved ргlтвк7 1аа[гистlоn: рориlвсlоа; dltfвraac dat1n1t1ou о! игЬго вли тву вffвее comparabt11c7 ot ртоv{ди gговлl, vоевс3оавl ог еи<hвг ствtпlа8 lистиссlои !ог рирllв даи ®оаа соlтетlвк. of 1У ео 17 уавп о! вgr, еогтавроодеыв соигввв ал раагвllу вксlидед. ,., гт ^� г г.п . a.ete л!_ „гЬке га ееиl ооvиlв[1оа: д1!!вгеnе Уевтв of веhооllап provtdad (Сlле вад аесопд 1вvа1вl • 2оЧ1 уил оЕ у•двС1а1с1оов,оl urbae вгввв аву вlfаес сотрвгвЬtllq о[ двеа тад{ соиапlвв. веЬооllау; ве иеаедвку 1еи1, vоевсlоиl 1a:crucclon ову Ьа рвтг1а11у ог еоврLевlу вкеlид.д. А[в еспса,zв (хтсгог) - Сhllдгго (0-16 Лвга). чагklа{'аЕв (ц� Л•л), yoeaclоиl аатсllrае (Z о! истдвn) - Уоисlоиl iдвсlсисlои iыlидв вад гесlгад (63 run вад ovarl вв оелмипв of в1д-омг еоw.lвг£ео. еем,lе.L 1_п_е,,.гтt.1 л лгn.т ^ Адв дгрведвпсу гасlо - RвС1о af poqrlacloa иадвг ц аад 63 аМ оик со сhаи дврвгтвдсв а( впоодвг7 1ис[[исlои.• -""" -•"--' •� r�аа , ст .а оЕ вqвв 13 :hrougA 64. Wu1c 1lсагаеч гви (?) - Llcaracв вдиlсв (вЬ1в со гаад вад к1[в) вв рвг- 2сопот£< даоапдееео гаеlо - Iiaclо о! рориlвеlоа иадве ц вед 63 аед аиг со иеиав af соиl вдиlс рориlвсlоа agad 15 уитв тд оvвг. cha 1вЬог forca lo авв агоир ot 13-64 уввл. Р®цv olanalлп - в<серсол (cumulaclva. с�аи) - Сиецlвсlvа ттЬвг о! аееврсол Наив ot bErc4-coactol деvlеав undet awpleu оЕ naclonal lатllу рLвтlа8 рго8гл Релоvв овг гоот lигЬеа) - 4wгвgв еитЬег о[ рвгв<ев раг тоот 1n осеирlад вlаеа 1ocaPrLoa. еоаvгасlоавl ди111еgв 1д игЬво вгевв; дw111дgв аксlида rtеа-рвгтваееС Р_�L1iP_1гапlnе_- швrв Сй of_твгг_tвд vaaaa) - Раптеве_ав of твпlад чатаа ot всжtиrм тд иаосеиоlвд овгев. ehlld-b�eвrleg вgв (13-Ь4 уигв) ,д+о wa blzch-eoaeтol двоlси со в11 твгriад Оееиоlед ди111аяв elchouc аlрвд vвит R) - Оееирlгд eoarгоelonвl диlllоgв vотва 1а втв вgа ;гоир. !д игЬад год пцвl вгив vlcbouc Lт1дв ог оисвlдв рtрвд wtar Евг11![1ав и рвтсгосаgа of в11 оссирlед dralltugв. Раоlовыеае цеив [о аlаспl<ter (: ot а11 dwllla¢в1 - Caev.erl_ва_1 dw11lе�! ыгЬ ?oeaL lаЬог Согеа (ehowвnd) - 3eovom1ea11y вееlvа рвлоак, Еаеlидlав влад вlвеетlelc7r !д 1tvlag ашгевл вв рагегое of соевl диlllдр !а икове тд fопи тд uaamployad Ьие e:etudlas ЬоивМwа, веидгосв, вее.; dat1a1c1oo: кvтаl влвв. 1а vвгlеш со,тстlвв вл аое сотрвгаЬlв. 4ига1 диillапв соnовеtвд :о аlкстtеlет 2) - Сотрисад и вЬои fог лгаl Lвbor fопа 1д аягl<иlсил (Z) - цтlсиlлкаl 1вЬое tотса (1д fвгtяlag, fоnвск7, dw111nta оа17. hvaelag вад CLh1ag) вв рвгетеаgв ot еоевl lабог fопв. 'h®оlмад (1 о! 1вЬае tстгя) - Ua®рlоуад вгг акшllу даtlыд вв ралеи vho Содкитоеlоп вл аЬLв тд r1111ag ео саkв в)о6, оис о! а Job оа в`1тго др, гетвlпад оиг Rad1o гквlvагк /мг сЬаи ом) - А11 сура af мвlvал Сот гадlо Ьtоадеиса of в Jo6, вдд вмkln8 лгk !ог в враеtflвд аlаlтт р.гlод аое вкеаадlад ои ео gговгаL puЫlе рвг сhоивгод of ооwlве£оа: акеlидм_ ,т_1_tеы_г.м_ т.г.1.,._._._ ивk; аву аое Ьа <®рвлЬlв Ьвеwп еоиаетlи див со д1Сlалас двl1д1с1от !а eoun[rin вад 1а уавn vЬва гев[всгасlоа о! гадlо seu vвв 1о аltкС; , о[ иатрlауад and аоипа о[ даи, в.;., eapla7meae ott!<а вевеLеltв, •smpla двеа Еог га<гое уавл тву аое Sa е®рвквЫа вlаев тове еоиаегlвв •bollahвd вигvвув, сотриlвогу unmpiayoмe lышамв. 1leautas. Риввияаг итя (раг Nmu�opl - Ривеакак еагв еоаогlка тлгок е ие_1_.ег Iveemв д1вСт16иС1оо - Репм[вgв а[ ргlvви lоеотв (Ъосб 1а савh тд klad) 1аи еЬвn в18Ье рвлоаа; пеlиди втЬиlамав, Ьавлав аод а111сак7 � гквlид Ьу г1сМа[ 3Z, гцhи[ 20Z, Роогввс 20Z, вад роогввс 40Z of hоцва- wЫсlав. Ьо1дв. рlвестlе![в (kvh/R Рвг <ао) - Аrmив1 соовитргlое о[ ladшerLl, соктвгеlаl, риЫ1с вед ргlvвев еlкtтlеlту !а kllowв[е Аоил овк евоtса_ я ev11v DLп16uc1oa of lаад owanhly - Ратсааиgав of 1шд оrявд Ьу иQehlме 10i Ьаид оа рлдиегlоо двсв, rlehoue вllоrвмв Foe lоввев �1а ;гlд+ ЬиС a11or- аод раоnвс lOZ оЕ lкад оювл. 1ag Сог faporC: вnд а>аоги о! вlаест£е1q. '.7еввогlа[ (tя/.т оае ев� - Раг еврlев вrmивl соыитрсlоа 1а kllogrem дввlеЬ вад Nucтt[foa меlsвид Скт давввбе огоди<гlоа о_lw ав[ lтаоги of nwвerlee. Рооиlкеlоо оег Phra1<1м - Рориlаеlоа dlrtdad Ьв аитЬаг о! ргкеlецц � � � рЬувleLu quв11f1ed [т<т в авдlевl веЬооl вг иnlилlс7 leral. CHAD TRANSPORT SEXTUR MEMORANDUM Principal External Trade Corridors Length Total No. of A%'Vet&ge Route Section -goad Rail River Length Transfers Transit Practicability Remarke (km 'rime 1. The Nigerian Routes Igo transfer needed for some fuel transport; a) Lagos (ApapA0-NDJumena Lagoa-Maidugurt - 1790 - 1,790 high risk of lose and breakages, long (2040 km) Ilaiduguri-HIDJaCimena 2 5 O - - 250 1 part delays In Lagoa and Port Horcourt; --- (rcra,4-rall) 2-31/ Alt-year difficult custom procedures; different b) Port Harcourt-HIDjamena Port Harcourt-Maiduguri - 1445 - 1445 %reeks road regulatLane; carried about 32Z (1690 km) Maidugurt-HIDjamena 250 - - 250 of total estimated freight tonnage In 1977. 2. The Cameroonian Routes Relatively simple adminin trat life and -NDJamena c atom procedures; same monetary zone; a) Douala Douala-H-Gaoundere 932 932 cumparativel, secure and reliable; 1717 km) MICaoundere-NDjamena, 7615 - 785 Y 1 2-3 All-year ome problems relative to priority b) Douals-Mondou Douala -H 'Cacrundere - 932 932 (road-rail) weeks .:ccorded to Chadian goods at Douala; (1674 km) NIGacrundere-hondou 742 - 742 carried approximately 4819 of total ,estimated freight tonnage In 1977. 3. The Transequatorial Routes a) Pte. Noire-Hondou PCs. Hoire-Birazzavk1le 515 515 Long transit time with associated (2450 km) Rrazzaville-Bangut - 1300Y 1300 risk of loea,wastage and thefts; Bangul -Moundou 615 - 635 poor condition of road@ in CAE. 2 4-(,/ 6-8 'barges can carry a full load oil, the b) Pte. Notra-Sarb PLe. Noire-Brazzaville 515 - 515 (road- rive r-ra it) monthe months Obangui only from August.-December, a (2450 km) brazzaville-Barigut - 13002-1 1300 period when road accesa to Bangui in Bangui-Sarh 635 - - 635 In its worst conditionj carried about 12% of total estimated freight tonnage 11 1977. 4. The Benoue , RouLes a) Burutu-Mondou Bururu-Garcrua - 155W 1550 Suitable for bulk commodities; (1982 km) Garoaa-Mondou 4:12 - 432 long waiting time at Nigerian ports - 4-5 Bencrue River of Wort and Port Harcourt; c3rried b) Burutu-NDjamuena Bururu-Garoua - 15564Y 1550 (road-river) weeks navigable approximately 6Z of estimated freight (2032 km) Garcrua-HIDjamena 482 - 482 2-3 months tonnage in 1977. 5. The Sudanese Route Poor condition of road between Ab6ch,k Abeche -Purt Sudan and Nyala; relatively inefficient Abach.S-Nyala 570 - 570 Sudan Railway; carried about 2X of 2623 km) Nyala-Port Sudan 2053 2053 1-2 All-year. (road-rall) estimated freight tonnage In 1977. 6. The Libyan R ute Mijamena-Tripoll NDjamena-Tripolt 3000 3000 Through difficult and mountaneous H!Ujamena-Tunts NDjamena-Tunis 3000 3000 terrain; politically troubled area. (3000 km) cr1 a I/ Does not accounL for excessive port deiftya; 11 Via Oubangui River; 3/ As a result of storage of goods in Bangui during the dry otason, when river navigation to noL possible. '41 Via lienrurie River. S(rUkCE: bank mistiLon. CHAD TRANSPORT SECTOR HEIORANDIJM Traffic Diversion on Principal External Routes 1966-77 - --O-- ----------- ------------------------------- EXPORTE-------------- 1966 1970 1974 197 Annual Rate 1966 1910 1974 1977- Annual Rate Route Tonnage % Tonnage 1 Tonnage 1 Tonnage 1 of Growth Tonnage 1 Tonnage , Tonnage 1 Tonnage 1 of Growth 1966-74 1966-74 Iransequatorial Route Petroleum Producta 8000 7 20100 14 2348 2 2000 1 -965- - Cotton - - - - - - - - 19610 42 3M00 53 14525 30 12000 20 Other Pro-jucts L8932 44 38200 26 13599 9 14000 7 8600 18 6400 10, .977 2 .2000 3 TotalS1 5 1 59H ri 38300 40 T59471 11 16000 '8 -152 28250 60- T9466 WW 52 T 4000 2 -7% igerian Route Petroleun Products 23215 21 52300 36 55345 37 65000 35 - - - - - - - - Cotton - - - - - - - - 2220 5f 700 1 - - - Other Products 15663 14 21000 15 26083 17 15000 8 2665 6 3200 5 1617 3 2000 3 Total 878 35 73300 51 8128 4 E14 43 + 10% 18 11 3900 6 1617 3 YOI 3 -131 Cameroonian Route Betroleum Products - - na. na. 15C1 1 2000 1 - - - - - - - - Cotton - - na. na. -- - - - 2500 5 14500 23 178361 37 35500 58 Other Products 6000 5 na. na. 43528 28 79500 43 - - 4800 8 7590 16 3000 5 Total 6000 5 13000 9 408 29 81500 T +291 .2500 5 T9e 31 25426 31 YB-0-6 63 +341 Benout Route2' Petroleum Products 1800 2 - - na. na. 1000 1 - - - - na. na. - - Cotton - - - - ns. na. - - 10931 24 - na. re. 6500 11 other Products 7500 7 - na. no. 7000 4 0- -. a. na. Total 49300 9 - - 900P1 6 8000 3 -0.42 10931~ 24 6000 12 5001 11C 1 -7% Total on Above Routes 111110 10 144600 100 151403 1 185500 100 *4% 46565 100 62600 100 48545 100 61000 100 *0.5% Total on All Surface Routes 111910 na. 154470 191000 +4% 0666 no. 49276 61450 +0.7 L/ Except cattle on hoof 1// Estimates 3/i Benous Route was temporarily closed from 1967-70. In 1971, cotton exports on.thie route amounted to 10,000 tons. Sources: 1960 figurest The Transport Sector in Chad, 1969; Bank Report No. AUl3 (Table 1). 1970 figures: Chad: Development Potential and Constraints; World Bank Country Economic Report, July 1974. p. 117. 1974 figures and 1977 estimates: Diagnostique Sur 1'Industrie des Tranoports Roatiers au Tchad, SEDES, Feb. 1977. CHAD TRANSPORT SECTOR MEMORAN1DUM Traffic Diversion on Principal External Routes, 1966-77 -----------------------------TOTAL ]EXPORTS AND IM--- -- Routes 1966 1970 1974 1977(est) Annual Rate of Growth Tonnage % Tonnage % Tonnage % Tonnage % 1966-1974 Transeguatorial Route Petroleum Products 8000 5 20100 10 2348 1 2000 1 Cotton 19650 12 33000 16 142525 7 12000 5 Other Products 56992 36 446,00 21 14576 7 16000 6 Total 85182 53 97700 47 31449 15 30000 12 12% Nigerian Route Petroleum Products 23215 15 52300 25 55345 28 65000 26 Cotton 2220 1 700 -- - - - Other Products 18328 12 242'00 12 27700 14 16617 7 Total 43763 28 772'00 37 83045 42 81617 33 + 8% Cameroonian Route Petroleum Products - - na. na. 11500 1 2000 1 Cotton 2500 2 na. na. 17836 9 35500 14 Other Products 6000 4 na. na. 51118 25 82500 34 Total 8500 6 32300 16 69454 35 120000 49 + 30% Benoue Route Petroleum Products 1800 1 - - n.a. na. 1000 - Cotton 10930 7 - - na. na. 6500 3 Other Products 7500 5 - - na. na. 7000 3 Total 20230 13 - - 15000 8 14500 6 - 4% Total on Above Routes 157675 100 207200 100 199948 100 246500 100 + 3% 7--i Total on All Surface Routes 158476 2164001) 208746 252450 + 3% 1/ Estimate. Source: See Table 2 Table 4 CHAD TRANSPORT SECTOR MEMORANDUM Highway Network, 1970 - 76 (km) 1970 1971 1972 1973 1974 1975 1976 1/ A. Cl a s sife Ntwo--rk NLIational Roads (Primary) Paved 242 242 242 242 242 253 253 Gravel and Eartil -,73 / ,83 2,ju 438U 4,329 43n4,0 ,0 Subtotal 1,980 2,080 nu 2,680 4,5 62 452 ,5 4,562 Prefectural Roads (Secondary) Earth 4,150 4,050 3,500 2,630 2,630 2,710 2,710 Total 6,130 6,130 6,180 7,192 7,192 7,272. 7,272 B. Unclassified NetworkÉ' Tracks 24,000 24,000 24,000 24,000 24,000 24,000 24,000 1/ The classified network represents roads that have been maintained from time to time by DPW and prefectural authorities, and is not based on a functiona -1sccification systpm. An alternate classification system gives: (1) 253 km of paved roads (3%); (ii) 1,128 km of engineered unpaved roads cuit-ab f-r heauv traffir (16%); (iii) 1,018 km of partially improved roads (14%); (iv) 2,163 km of unimproved or partly improved r-A (3'); 2a (i) 9 710 irm ^f pefictural rnndc ('7%). 2/ The unclassified network represents an estimate of recognized or mArkpd trarks. Source: Directorate of Public Works, 1976 Table 5 CHAD TRANSPORT SECTOR MEMORANDUM Traffic on the Highway Network Road Link Length Average Daily Traffic (ADT) 1963 1970 1977 A. All-Weather Engineered Roads Paved Djamena-Guelengdeng 157 45 108 140 N'Djamena-Kassaguet 85 33 48 211 Moundou-Koutou 11 - - 100, UnPaved(Laterita) Niallia-Guere 80 13 16 21 Doba-Kouara 90 9 34 41 Koumra-Guaere 74 16 40 48 Maindou-La Sida .86 12 12 6 Pala-Kalo 107 25 39 38 Kalo-Koundou 104 27 38 48 oundou-Baikoro 20 - 45 51 Baikoro-Gore-CAE 110 15 17 13 Unpaved (Earth) Massaguet-Karme 53 17 12 21 Massagusc-Maseakory 68 17 27 37 Mzssakery-Bir Gerac/2 38 - 10 10* Chagoua-Linia 30 - 60 103 Guere-Sarh 27 - 56 48 Sarh-Maindou 36 20 32 33 Pala-Lare-Cameroon 122 - 7 23 B. Partially tmproved Roads Unpaved (Laterite) Baikoro-Doba 79 21 37 51 Unpaved (Earth) Guelangdeng-Bongor 83 22 25 34 Abeha-Bittine 92 7 7 8* Abeche-Adra 167 12 8 10* ogo-MiItou-Niellim 150 13 16 21 Magou-Lai 49 23 30 46 C. Earth Tracks Karme-N'Coura 72 17 12 13* Bangor-Magou 99 23 30 46 Guelengdeng-Mogo 149 3 12 36 Guidari-Kouara 116 5 8 7 Kouara-Koisala 74 11 13 15 Lai-Doba 108 14 16 18* Doba-Gore 95 18 14 12 Lai-Guidari 44 8 14 10 Moundou-Babokoum-CAE 152 12 18 9 Lai-Kain 60 12 - 9 Koutou-Bere 91 17 23 23 Kalo-Gounou-Gaya 52 - - 9 srh05yabe 98 9 io 10* Ati-N'Goura/2 233 17 11 10* Minor Djermaya-Ojimcilo 82 Goura-Bitkine 244 Bir Carac-Moussoro/2 96 Linia-aseaanya 127 Ati-OuaHadjer 165 OumHadjer-Abeche 146 Ati-MKongo 134 Bitkine-Mongo 59 Mongo-Mangalme 118 Malfi-Bitkine 118 Estimated Traffic, 1977 OumBadjer-Mangalme 110 Mangalme-Aboudeia 123 Under 10 vpd. Kyabe-Am Timan 259 Am Timan-Aboudela 135 Moaissala-Kendere 125 Gounou Gaya-Tikem 58 Pals-Fianga-Camroon 83 Oulibangala-Pandzangue 15 Pala-Gagal-Beinamar 121 Rainannaernucon 90 Ati-Ifenat/2 63 Dankala-Yao72 39 Bir Garar-Moussoro 96 Malfi-Dik 149 1/ Paved roads are not included in the Third Highway Project; their maincenanct will be carried out under FED assistance. 2/ To be improved and maintained under UNSO Road Rehabilitation Program . Estimate Source: RCEOM. "Camagne de Comtages at d'Enquates de Circulation", Rapport d'Etude 1978. Table6 CHAD TRANSPORT SECTOR MEMORANDUM Growth of the Vehicle Fleet, 1970-19761/ (units) Annual 1970 1971 1972. 1973 1974 1975 1976 Rate of Growth Mo-10torcycles/Scooters 52 57 6 637 674 701 773 77 Passenger Cars, Jeeps 4,407 4,765 4,990 5,560 5,812 6,058 6252 6% Buses 100 126 134 137 144 152 159 8% Pickup Trucks 3,765 4,202 4,471 4,745 4,961 5,145 5327 6% Trucks 2,345 2,482 2,648 2,752 2,907 3,083 3165 5% Special Vehicles 231 253 255 . 255 258 274 274 3% Tractors 78 88 104 111 130 159 163 13% Trailers 482 541 597 621 649 674 706 7 Total 11,924 13,035 13,802 14,818 15,535 15,545 16819 6% 1/ Inclusive of Government vehicles. 2/ The annual increase in vehicle fleet does not account for normal vehicle attrition. Source: Directorate of Planning and Development, 1977. Table 7 CHAD TRANSPORT SECTOR MEMORANDUM Growth of the Government Vehicle Fleet (AT), 1970-1975 (units) Annu i 1970 1971 1972 1973 1974 1975 Rate of Growth Motorcycles/Scooters 34 58 58 58 58 58 11% Passenger Cars, Jeep, Landrovers 12 193.7 216. 280 315 331 22 Buses - - - - - 1 - Pickup Trucks 334 399 446 499 548 676 15% Trucks 149 253 264 328 357 411 22% Tractors 5 9 9 10 10 10 15% Trailers 1 1 1 2 2 5 38% TOTAL 646 913 994 1177 1290 1492 18% 1/ The annual increase in vehicle fleet does not account for normal vehicle attrition. Source: Directorate of Mines, 1977. CHAD TRANSPORT SECTOR MEMORANDUM Fuel Consumption 1968-76 (m3) 1968 1969 1970 1971 1972 1973 1974 1975 1976 Gasoline (regular) 15,880 16,441 16,359 16,994 14,957 13,662 9,327 12,063 10,074 Gasoline (super) 885 1,001 978 1,528 1,767 2,137 1,786 :2,582 2,541 Kerosene oil 3,618 3,983 3,069 2,956 2,890 2,304 937 986 1,432 Diesel oil 14,222 14,428 15,319 17,063 16,955 19,713 22,186 19,876 17,822 of which for Transport 1/ 4,333 3,461 3,529 3,395 2,461 2,971 5,703 3,476 1,368 Aviation gasoline 7,350 7,420 11,730 10,567 7,374 7,034 6,769 6,770 3,513 Aviation kerosene 15,132 19,331 24,790 23,144 26,714 31,942'2/ 23,175 16,413 32,245 1/ Consumption by road transport = total consumption - consumption of diesel oil for power.generation 2/ Large increase due to drought relief air lift. Source: Bulletin de Statistiques, R6publique du Tchad, 1969- 1976. I CHAD TRANSPORT SECTOR HEMORDUm Government Revenues from Road Users, 1969 - 75 (CFAF millIon) Year Fuel Taxes Cuatm Duties and Taxes -Other Revenuee Gaoline Diesel Oil Total Lubricante Tirea Tubea Spare Autonobiles Trucke Trailers Special Total Annual Licencing2 Vehcle Total Parte Vehicles Registration- Inepection 1969 233.9I 116.0 349.9 32.7 43.6 n.a. 40.9 n.&. 11.. n.A. n.&. n.a. n.a. 2.6 n.a. n.a. 1970 337.5 136.8 474.3 42.4 75.2 n.a. 40.6 n.&. n.8. n.a. n.a. n.&. 51.1 2.8 n.a. n.d. 1971 363.0 174.2 537.2 33.6 64.3 7.2 43.3 117.6 110.0 21.2 4.4 461.6 67.2 3.7 n.a. n.a. 19172 297.9 113.6 411.5 28.6 42.7 5.4 36.1 83.7 75.8 11.0 1.0 284.3 66.7 4.3 n.a. n.a. 1973 337.6 209..21 546.8 25.0 41.5 8.2 32.1 106.3 125.3 10.2 0.4 349.0 69.0 22.0 2.0 93.0 1974 253.6 235.0 488.6 55.2 48.9 10.6 91.5 187.1 188.3 25.0 0.0 606.6 94.0 11.0 8.0 113.0 1975,4 195.]1 120.;0 315.1 41.7 74.8 7.9 71.3 99.2 190.4 30.7 0.6 516.6 85.o/ 112.1y 9.8k- 107.5 1/ Vignetteo - Annual fees on vehilclea. Îl Licence fees derived from grey carda which are tøtued when vehicle ownerhIt i t a eferred 3/ Include! an exceptional tax of CFAF 8/liter on an estImated 16.7 milltor lire O iesei ol (9K pQvwr ;1a0ts. 4l Figures for "Fuel Taxea" and "Custom Duties aud Taxe" are for 9 months (Jan. - Sept. 1975) only. 5/ Figures for 1975 n.a. - Not .Ivatlable Source: a) hureau of Customa b) Directorate of Mineo c) minitry of Finance Table 10 CHAD TRANSPORT SECTOR MEMORANDUM Principal Airfields under ASECNA Management Location Runway/Airstrip Surface N'Dimpna (TnternatinnAl) 2,800 X 40m Rituminom Concretp Sarh 1,800 X 40m Laterite Mud1,80 Xo 35zLm Bi.ntuinou Surface 1 90r) Y qq_F,mmraC,r!r Treatment on Laterite Abech6 1,800 X 35m Bituminous Surface Treatmen Faya Largeau 2,300 X 50m Crushed Stone Mongo 1,800 X 30m Sand - Clay Pala 1,600 X 35m Laterite Bongor 1,600 X 30m Stabilized Earth Am-Timan 1,500 X 20m Brickbat Ati 1,300 X 20m Brickbat and Gravel Bol 800 X 20m Soil - Cement Bardai 1' 1,800 X 58m Sand and Gravel Zouar 1,450 X 35m Sand and Gravel Ounianga-Kebir 1,320 X 20m Sand Fada 1,100 X 50m Sand - Clay Koro Toro 1,000 X 30m Sand - Clay 1/ The following airports have not been regularly operated and maintained by ASECNA. Source: ASECNA, 1976. Misaio estimates. Table 11 CHAD TRANSPORT SECTOR MEMORANDUM Air Freight, 1970-1976 (tons) Airports 1970 1971 1972 1973 1974 1975 1976 Annual Rate of Growth 1970-1975 - Arriving Frei2ht N'jamena 1260Q 10162 7398 9960 Q116 8361 8132 7% Othprs 109 1139 9070 338 -17% TOTAL 13668 11301 83,3 10925 0716 8731 8470 - 8% Departing Freight NtDjamena 13813 14578 8663 6917 8185 5614 4147 -18% I ,n, nne I n^ In ne r ~ I Others 1I70 118/ 25 1 199 185 IO5 -3 TOTAL 15514 15762 8888 7097 8384 5799 4292 -19% Note: Ton-kilometers on the internal network may be estimated by multiplying the arrival and departure data shown for "other" airports with the average trip length estimated at 600 km. Sources: - Bulletin de Statistique, Republique du Tehad, 1969-1976. Table 12 CHAD TRANSPORT SECTOR MEMORANDUM Air Traffic, 1970-76 Airports 1970 1971 1972 1973 1974 1975 1976 Commeri Aircraft Arrivals & Departures N'Djamena 6,162 5,732 4,678 4,223 4,219 3,757 4075 Others 2,822 2,258 2,830 2,363 1,788 1,846 1963 Total 8,984 7,990 7,508 6,586 6,007 5,603 6038 Number of Arrivals (Passengers) N'Djamena 28,752 30,611 30,162 27,614 26,859 35,101 28,544 Others 10,655 9,653 12,196 10,063 8,274 9,938 10,981 Total 39,407 40,264 42,358 37,677 35,133 45,039 39,525 Number of Departures (Passengers) N'Djamena 32,788 33,659 33,535 31,312 20,051 32,287 29,818 Others 11,030 9,776 11,889 11,017 9,880 11,874 12,908 Total 43,818 43,435 45,424 42,329 38,931 44,161 42,726 Number of Passengers in Transit N'Djamena 21,439 18,332 15,305 12,522 1,853 18,537 19,859 Others 7,486 10,507 15,506 5,256 5,851 10,186 -5,372 Total 28,925 28,839 30,811 17,778 7,710 28,723 25,231 1/ January-June 1976. Source: -Bulletin de Statistique, Republique du Tehad, 1969-1976 Table 13 CHAD TRANSPORT SECTOR MEMORANDUM ASECNA Expenditures and Revenues (CFAF millions) YEAR ----------------EXPENDITURES------------------ Capital Operating 1. Total 1970 124.0 240.7 364.7 1971 114.2 255.4 369.6 1972 78.4 264.2 342.6 1973 125.3 280.8 406.1 1974 100.0 311.9 411.9 1975 23.3 322.8 346.1 2/ 1976- 15.7 261.8 277.5 ------------------------------------- REVENUES------------------------------------- YEAR Landing Lighting Parking Passenger Freight Aeronautical Building Rent, Tax Tax Tax Tax Tax Information Concessions & TOTAL Service(SIA) Other Sources 1970 167.4 2.8 6.9 21.9 20.0 14.1 27.9 261.0 1971 161.5 2.8 6.1 23.1 16.3 - 33.3 243.1 1972 149.1 1.6 3.5 29.9 14.1 15.2 26.8 240.2 1973 162.4 7.7 3.0 29.1 18.3 12.8 28.3 261.6 1974 233.3F 9.4 6.8 26.6 16.4 42.5 25.4 360.4 1975 246.3 9.1 2.7 29.7 13.8 - 33.4 335.0 1976- 150.3 4.5 1.5 16.3 10.3 17.5 40.9 241.3 1/ Administration and Maintenance Expenditures. 2/ Up to November 30, 1976. 3/ Increase due to introduction of a higher landing tax, under Article 2 of ASECNA. Note: The difference between expenditures and revenues is covered from: (i) French and Member State contributions to ASECNA for operating expenses; and (ii) French and Chad Government subsidies for capital expenditure. Source: ASECNA, 1976. Table 14 CHAD TRANSPORT SECTOR HEMORANDUM Externa' Assistance: TrnprtSco (CraAFpmillions) 1971 1972 1973 1974 1975 1976 Total A. FAC MIondou Bridge Repair - 135 28 6 35 4 20$ Drought Roads - - - 30 39 65 134 N'Djamena irport - - - - - 100- LOU (Runway Strengthening) B. FED 2/ N'Djamena-Guelendenug Road 689 - 2- - - 715 Mondou-Gidjiba Study - - 40 30 4 - 74 Mondou Airport Road - - 4 127 189 120 440 Bngrr-T;i Stud - - 27 85 20 - 132 3/ N'Diamena-Massaguet Road - - - 69 62 7 138 . 4/ "a--lli Eridge - - 5 90 128 223 Cotton Roads(Drainage 192 21 7 - - - 220 Project) C. EEC Drought Roads - - - 75 15 90 urhan Street Improvemerr (NDjamena)- - - - 145 145 D. UNSO (United Nations Sahel Office) Road Maintenance Study - - - - 53 - 53 E. USAID Maintinance of Drought Roads- - - 25 92 22 139 pening off eaviranion Chnnel - - 19 19 hetween Bol and Lake Chad Credit 125-CD-/ 422 123 226 145 8 23 947 Credit 490-CD - - - - 78 209 287 Total 1303 279 358 522 745 937 4144 1/ An- additional CFAF 140 million provided by ASECNA 2/ Prior to 1971, FED provided CFAF 1.905 million for this project 3/ Prior to 1971, FED provided CFAF 754 million for this project 4/ Project to be comoleted in 1977 at a total cost of CFAF270.5 million 5/ Funds obcained from proceeds of food sales under Aide Cérale 6/ An estimated CFAF 79 million for equipment and spare parts / CF3.5 illion frcm the Credit ,sed in 1969-7n Source: Directorate of Planning and loý"Pnpment, 1977 iaD.Le -L' CHAD ,TRANSPORT SECTOR MEMORANDUM Expenditures on Hizhway. 1971-1976 Year Capital Maintenance 1/ Ex pei iture ActImRuaExpeniftu1resz Bu d get Adiitain Total DPW Prefectural Allocation Authorities 2/ 1971 130 1889 (223 ) 13 7 .LJI 1000 197 27W4 0 243 695 17 35 140 748 3/ 1974 522 220 - (220) 148 890 1975 745 220 - (221) 154 1106 4/ 1976 738 303 - (442) 144 1185 1/ Includes approximately CFAF50 million per year in wages for operational staff. 2/ During the period 1971-76, the capital expenditure on highways represents the total of external assistance for studies, construction and purchase of equipment. 3/ Maintenance of prefectural roads taken over by DPW in 1974. 4/ CFAF420 million were actually committed for maintenance of roads and ferryboats. Source: Directorate of Public Works, 1977. Table 16 CHAD TRANSPORT SECTOR MEMORANDUM Puihlir Sector investments (in perceantnaa nd CAF billion) I7-68 1-7 1I 971 71 19 Q73-72 4 175 Agriculture 16.8 15.1 18.4 27.1 52.8 Industry 4.3 2.1 3.1 4.4 4.9 Transport &Communications 44.0 32.1 14.5 11.2 5.8 Health - - 3.8 4.9 Education 9.8 6.3 1.9 4.5 6.1 Community & Social Services 11.8 16.5 18.1 35.2 17.7 Unspecified 13.3 27.9 40.2 12.7 9.8 TOTAL 100.0 100.0 100.0 100.0 100.0 Total in billions of CFAF 3.5 4.5 4.6 7.1 9.9 As % of GDP 5.4 6.1 5.6 8.2 9.2 Source: Republic of Chad, Economic Memorandum, World Bank Report No. 1340-CD, une 1077 Table 17 CHAD TRANSPORT SECTOR MEMORANDUM Proposed Airport Infrastructure Improvement Program 1976 - 1980 Location Imnrovements Cost (CFAF millions) International Airport 2/ 1. N'Djamena - Strengthening of the Runway 326-/ (1975) (International - New International Airport 20000 to Airport) located at Linia -30000 (1976) -Air Conditong n4.a. - Fire-fighting Equipment 10 (1974) Domestic Airports 2. Abech6 - Strengthening of the Runway -Water UPP.Ly aL ALrpOrt UUV (1.74) A- - n^^ ,1 fl /, - Surfacing of the Runway 200 (197/4) 4. Faya-Largeau - Paving of the Runway 0U (./4) 5. Ati - Extension, widening and regravelling of the Runway 180 (1974) - Apron Facilities 6. Bol - Extension of the Runway 80 (1974) 7. Mongo Regravelling of the Runway 105 (1974) 8. Moundou - Fire-fighting Equipment 8 (1974) 9. Various Airports - Telecommunications Equipment-:-' 154 (1975) TOTAL 2147=-' 1/ Completed in 1976-77 with financial assistance from FAC and ASECNA. 2/ Figures in parenthesis are the year of cost estimates. 3/ In addition, metereological equipment worth CFAFll6 million is being provided under external assistance. 4/ Excluding Item 1. Source: ASECNA, 1977. Table 18 CHAD TRANSPORT SECTOR MEMORANDUM Rehabilitation of Air Strips Under IDA Sahelian Zone Project (Credit 739CD) Subproject Costs Airstrip and Item Unit Unit quantity Total % Foreign Cost Cost Exchange Abechd -Cut back 200 1. 40 10 400 80 -Gravel m3 13 8 104 - - Labor man-month 6 10 60 - Subtotal 564 57 Am Timan 3/ -Bricks 1000 3 561 1683 - -Lay-out & compacting MA 2 1700 3400 - Subtotal 5083 - Ati -Brickbats m3 0.65 1075 699 - -Gravel m3 0.5 715 358 - -Lay-out & compacting m3 1.2 1790 2148 - Subtocal 3205 Faya -Gasoline 1000 1. 110 3 330 70 -Diesel Fuel 1000 1. 90 2.1 189 70 -Oil and other Sum 30 70 -Spare Parts Sum 50 70 -Labor man-month 6 8 48 - Subtotal 647 65 6/ Mao 3/ -Bricks 1000 3 360 1080 - -Lay-out & compacting m3 2.5 1100 2750 - Subtotal 3830 - 7/ o -Gravel M 3 0.5 3000 1500 - -Lay-out & compacting m3 1.2 3000 3600 - Subtotal 5100 - 8) Physical Contingencies 1843 4 Total Suboroject Cost 20272 4 1/ Length of airstrip: 1,800 m; width 35 m; present surface: gravelled tar; works to be done: fill potholes. 2/ Length: 1,500 m; width 20m; present surface: brickbats; works.to be done: resurface to 5 cm an 34,000 m2 (4nej_if4 n.,3arkin . m < _ 170 n3 3/ 330 bricks/m3. 4/ Length: 1,300 m, width 20m; present surface: brickbats and gravel; works to be done: resurface to 5 cm on 35,800 m2, i.e. 1,790 m3. 5/ Length: 2,300 m; width 40 m; present surface: crushed stone; works to be done: grading and compacting; supplies provided for 30 workine days. 15 Der year. 6/ Length: 1,100 m; width 20 m; resent surface: unbaked clay bricks; works to be done: resurface to 5 cm on 22,000 m (no parking area or taxivay), i.e. 1,100 m3, 7/ Tangth: 1,800 m; width 30 esnsufeu quarry aterial: works to be done: resurface to 5 cm on 60,000 m2, i.e. 3000 m 8/ 10% on all items. Source: ASECNA, Public Works Department, 1977. Table 19 CHAD TRANSPORT SECTOR MEMORANDUM Estimated Demand for Freight Transport 1976-77 International Freight Transit Route Imports other Exports Total than Petroleum (tons) Exports & Imports (tons) (tons) Nigeria 15,000 2,000 17,000 Cameroon - via N'Gaounder6 50,000 37,000 87,000 - via Benoui & others 36,000 8,000 44,000 CAE 14,000 14,000 28,000 Other Overland Routes 5,500 500 6,000 Subtotal 121,000 61,500.1 182,000 - - - - ---- - - - - - - - - - - - - - - - - - - - - - - - Petroleum Imports (tons) Nigeria 65,000 65,000 Other Routes 5,000 5,000 Subtotal 70,000 Total 252,000 D.mestic Freight N'Djamena - East,and North 21,000 N'Djamena - South - Beer 20,000 - Other Merchandize 20,000 Sarh - Moundou 2,0 Farm to Ginnery Transport of Cotton 1, Total 226,000 1/ Cotton exports account for about 54,000 tors. Source: - SEDES,'biagnostique Sur l'Industrie de Transport RoutiZre au Tchad', 1977. - Mission estimates. Table 20 CHAD TRANSPORT SECTOR MEMORANDUM Distribution of International Freight Transport Demand by Type of Commodity 1976 - 1977 Tonnage (tons/year) 1. Imports Petroleum products 70,000 Agricultural related products Sugar 25,000 Cement 15,000 Fertilizer and Insecticide 16,000 Timber 7,500 Wheat Flour 10,000 Food Products 20,000 Equipment 3,500 Miscellaneous 24,000 2. Exports Cotton 54,000 Others 7,450 TOTAT. 252,450 Source: SEDES, 1977 Table 21 CHAD TRANSPORT SECTOR MEMORANDUM Age Spectrum of CTT Truck Fleet in 1974 Percent Distribution Age Heavy Trucks Light Trucks (>P20 t) (<1 6 t-) 0 8.3 2.6 1 26.5 14.0 10 0 4~ 5.0. 5 5.5 2.6 6 9.4 3.1 7 6.6 4.1 8 3.9 1.5 9 1.7 4.7 10 2.8 6.7 11 2.8 11.4 12 1.6 21.2 12 3.3 .16.0 Total IMFY IUU7.- hverage Age 4.0 4.7 Sample, n = 181 Sample, n = 193 urce: Bank stAff estates from CTT operational data. Table 22 CHAD TRANSPORT SECTOR MEMORANDUM Tonnage Transported by CTT in 1975 Route Dry Cargo Fuel Cotton (tons) (m3 (t /,ons) Nigerian 21,400 14,000 - Cameroonian 27,200 - 38,000 Transequatorial 11,000 1,600 12,000 Domestic 15,000 2,800 - TOTAL 74,600 18,400 50,000 Source: SEDES, 1977 Table 23 CHAD TRANSPORT SECTOR MEMORANDUM CTT - Distribution of Truck Ownership Truck Ownership Niumher of Trannprterc (Number) 1 227 64 85 2 63 14.99 3 27 7.70 7 2.00 5 10 2.90 6 5 1.40 7 6 1.70 8 1 0.28 9 1 0.28 10 and more 3 0.84 350 100 Source: ORGATEC, "Evaluation de 1'Industrie des Transports Routiers au Tchad", 1977. Table 24 ?HAD TRANSPORT SECTOR MEMORANDUM Value of the Production of Freight Transport Industry (19O75)' Transport: Outside CTT 100 millions CFAF Transport: COTONTCHAD 323 millions CFAF Transport: Traditional - Food items 100 millions CFAF - Timber 290 millions CFAF - Fish 20 millions CFAF - Salt 25 millions CFAF - Others 25 millions CFAF TOTAL PRODUCTION 2.123 millions CFAF Source: Chad 4National Economic Accounts, as reported in SEDES, 1977. Table 25 CHAD TRANSPORT SECTOR MEMORANDUM Distribution of Transport Revenues Generated by CTT Membership -Range of Transport Revenues % of Members % of Revenues (in 1,000 CFAF) 0 to 500 30.47 0.75 50 A to 1 ,00 6 0.72 w - - L, 9 w , 4jJ~. V L 1,000n to 2,000 9.00 2.0 2,000 to 5,000 13.14 93 5,000 to 10,000 20.76 20.22 10,000.to 15,000 8.65 15.28 15,000 to 20,000 3.80 8.93 20,000 to 30,000 3.46 11.74 30,000 to 40,000 1.38 6.66 40,000 to 50,000 0.69 4.25 50,000 to 100,000 1.38 12.52 Greater than 100,000 0.35 7.58 TOTAL 100.00 100.00 Sofrce: ORGATEC "Evaluation de 1'Industrie des Transports Routiers au Tchad", Anr4l 1977 CHAD Table 26 TRANSPORT SECTOR MEMORANDUM Principal Road Transport Tariffs (Excluding 4.4% Taxe de Chiffre d'Affaires) A. INTERNATIONAL KuuTES 1. Dry Goods -------------ari ? (CAIton-k") -- ------------ Routes Cameroonian Transequatoria1 Nigerian Item (To N'Gaound6ri) (To Bangui) (To Maiduguri) Sugar 13.5 14.0-20.0 31.2 Cotton 17.0 16.53 15.87 Metal Sheets (+7m) 19.0 16.6-21.4 38.4 Flour 13.5 12.3-15.9 27.4 Cement 13.5 14.1-18.2 38.4 Other Merchandise 18.0 14.8-19.1 38.4 2. Fuel Routes Tariff (CFAF/m3 -km) Nigerian Route - From Lagos 11.76 - From Kano 13.95 - From Maidueuri 20.00 Transequatorial Route 17.0-19.3 B. DOMESTIC ROUTES --------------Tariff (CFA/ton-km)------------ Item N'Djamena to: Tracks in Sahelian Sarh Moundou Abgchg Zone Cement 13.8 13.2 20.6 Flour 10.8 10.1 17.5 25-46 Metal Sheets 14.7 14.1 23.8 Other Merchandise 14.7 14.1 19.0 FueZ 3/16.1 16.1 20.7 Transport for the Army- 20 20 30 30-66 Transport for Petro- leum Exploitation 19.5 19.5 - 55 Beer/ - 12.4 - C. COMPARATIVE ROAD TRANSPORT TARIFFS IN CAMEROON (From N'Gaoundfri to North Cameroon, Chad, and CAE) Item --Tariff (CFAF/ton-km)--- Metal Sheets 25.0 Rice, Flour, Sugar, Malt, Cement 20.0 Fertilizer 19.0 Cotton 20.0 Other Merchandise- 24.0 1/ Tariff variable depending upon point of origin or destination in Chad. 21 Price in CFAF/m3-km. 3/ Tariffs obtained under special contract. Source: - Chad, "Decret No. 327/PR/TPT/DT", December 4, 1974 - SEDES, 1977 k, I tAy TRANSPORT SECTOR MEMORANDUM Financial Cost of Transport TT eair y 1977 prices) --------------------Transport Cost (C/ok--n--- --- International Routes Domestic Routes Tracks in Sahel Zone A. Transport of Dry Goods Annual Kilometrage 40,000 60,000 30, 000 50,000 20,000 40,000 Truck 12 t Payload Load Factor - 55% 29.2-35.7 27.1-33.3 30.7-41.7 28.0-38.3 47.0-48.1 43.1-43.8 - 65% 24.6-30.4 22.8-28.3 26.0-36.1 23.6-32.6 42.1-43.2 37.0-38.2 - 75% 21.5-26.2 19.9-24.5 22.2-30.9 20.4-28.1 36.5-37.5 32.0-33.2 - 100% 16.0-19.6 14.8-18.9 17.0-23.1 15.3-21.3 27.2-28.1 24.0-24.8 Truck-Trailer 26 t Payload Load Factor - 55% 18.5-22.2 17.2-20.3 22.3-26.9 19.7-24.1 - 65% 15.7-18.7 14.5-17.0 18.9-23.2 16.8-20.5 - 75% 13.6-16.3 12.6-14.8 16.5-19.6 i4.5-17.7 - 100% 10.2-12.2 09.4-11.3 12.2-14.7 10.9-13.4 Transport Cost ('CFAF/m3-km) International Route (Approximately 100% Paved) B. Fuel Transport Annual Kilometrage 70,000 80,000 90,000 Tanker 30 m3, 50% Load Factor 11.6-16.0 10.6-15.7 10.3-15.5 Note: (a) Lower bound values are based on purchase of some fuel, spare parts, and tires in neighboring countries, and the best surface type for a given route category, as applicable; (b) Upper bound values are based on purchase of all commodities in Chad, and the lowest surface type for a given route category as applicable. Source: Adapted from ORGATEC, 1977. Table 28 CHAD TRANSPORT SECTOR MEMORANDUM 1/ Vehicle Operatlg: r. (rVAF/I000 km) as a Function of Traffic and Road Surface Characteristics Gravel Road (Laterite Surface) VOC Estimate T R RD LD VL CMS CMR CLR 0 3250 11.0 15.5 52264 96147 169780 211172 1 3332 11.2 11.1 52266 96152 169790 211185 5 3632 12.1 5.9 52322 96280 170039 211513 10 3944 13.0 2.9 52495 96677 i11 15 4200 13.9 1.9 52784 97340 172107 214241 20 4410 14.7 1.6 53188 98267 173916 216628 30 4744 16.5 1.5 54343 100917 179086 223448 50 5400 22.4 1.5 58039 109397 195630 245272 80 7794 43.1 1.5 67048 130067 235956 298468 100 11450 70.0 1.5 75364 149147 - - 2/ max. va: - 76000 150000 250000 300000 Earth Road (Sandy Clay Surface) VOC Estimate T R RD LD VL CMSMS CHR CLR 0 3250 1l0 15.55 50721 94560 165690 204287 1 4035 15.2 11.1 53813 99041 174092 216771 5 7175 20.0 10.0 64945 115666 205560 264572 10 11700 26.0 10.0 76132 133512 240080 319507 15 14000 32.0 10.0 84250 '148100 269250 369092 20 100 38.0 10.0 89311 159428 293076 378127 25 14000 50.0 10.0 91314 167498 511548 397212 30 14000 50.0 10.0 91500 172308 324669 406547 max. voc: 92000 175000 325000 4L0000 Earth Track VOC Estimate T R RD LD VIL CS C!'R CLR 0 3250 14.0 15.5 50681 94212 165393 203632 1 4505 15.2 11.0 55755 101558 179219 224073 5 9525 20.0 10.0 72155 125814 225265 291067 10 14000 26.0 10.0 84391 145315 262877 343731 20 14000 32.0 10.0 88395 158510 293319 376250 30 14000 50.0 10.0 90410 169797 323719 409189 max. voc: 91000 170000 330000 410000 1/ Net of taxes, in January 1977 prices. Max.VOC corresponds to an average speed of 10-15 Um/hr. LEGEND T- cumulative traffic volume since last grading VI. light goods vehicle (2.5t) in both directions (1000 vehs.) CMS- medium truck (13t) R. roughness (mm/km) CMR. medium truck/trailer (29t0 RD. rut depth (mm) CLR. heavy truck/trailer (38t) LDw depth of loose material (mm) VOC. vehicle operating cost (CFAF/1000 km) Source: Mission estimates. 1977. CHAD TRANSPORT SECTOR MEMORANDUM Intermediary Costs Between CIF Price Port of Entry, and Retail Price.In N'Djamena (CFAF/ton in 1974 Prices) Distribution Item CIF Price, Port Handling & Transport Duties and Costs and Retail Price Port of Charges Storage Cost Costs Taxes Commercial Entry at the Port Mark-u- Reinforcing_Steel - Cameroonian Route 70,000 175 9,805 19,600 42,504 49,090 191,174 - Nigerian Route 70,000 140 11,675 15,590 41,348 47,939 186,692 - Transequatorial Route 70,000 .590 10,346 25,515 42,1:33 51,335 199,919 Corrugated Metal Sheets - Cameroonian Route 104,800 175 10,260 19,600 64,361 123,501 322,607 - Nigerian Route 104,800 140 12,130 15,590 63,205 121,436 317,301 - Transequatorial Route 104,800 590 10,741 26,110 63,998 127,868 334,107 Tea - Cameroonian Route 170,000 523 17,995 27,183 182,840 105,613 504,154 - Nigerian Route 170,000 172 12,580 23,628 180,557 102,538 480,475 - Transequatorial Route 170,000 972 17,387 38,364 181,750 108,248 516,721 - Cameroonian Route 1100,000 125 5,800 19,945 1,597 - 127,467 - Nigerian Route 100,000 140 7,870 15,690 431 - 194,131 - Transequatorial Route 1100,000 690 8,470 25,925 1,102 - 136,187 Flour - Cameroonian Route 68,000 125 6,235 18,700 1,622 19,883 114,565 - Nigerian Route 68,000 140 8,673 13,290 461 19,018 109,582 - Transequatorial Route 68,000 490 6,001 20,200 959 20,086 115,736 Tires less than 15_k9 - Cameroonian Route 2,835 740 1,985 1,410 6,970 (Douala-NDjamena by Air) Light Truck - Cameroonian Route 1,138,600 1,128 32,169 106,500 5,68,000 398,815 2,245,437 Heavy Trucks - 12 t Payload - Cameroonian Route 4,290,700 2,958 62,510 175,000 1,590,986 1,690,283 7,812,437 1/ Wholesale price to factory. Source: SEDES, 1977. Table 30 CHAD TRANSPORT SECTOR MEMORANDUM Transport Costs, Duties, and Taxes on Selected items Destined to N'D)jamn- via Dou1ala-1- Transport Cost Duties Taxes / LULL) Equipment Spare Parts 43,769 35% 15.2% Cement 29,088 25% 15.2% Sugar 31,875 0% 0.2% Flour 31,875 0% 0.2% Metal Goods 39,427 30% 15.2% Fertilizer 31,875 0% 15.2% Trucks Variable 35% 20.2% Tractors Variable 15% 20.2% Trailers Variable 20% 15.2% Transport Costs, Duties,and Taxes on Fuel from Refinery in Lagos Transport Cost Duties Taxes (CFAF/m3) (CFAF/m3) (CFAF/m3) Gasoline(Super) 29,000 5,000 13,500 Gaoline(Rgu1ar) 29;000 5.000 13-500 Kerosene 29Q000 1-o0 - Source: - ORGATEC, 1977 - Bank Staff Estimates. CHAD Table 31 TRANSPORT SECTOR MEMORANDUM Freight Transport on Inland Waterways I. Tonnage 1. Comouna i) The Chari Year Upstream Downstream Total N'Diamena-Sarh Sarh-N'biamena: (tons) 1970 1,195 6-88059 1971 1,333 3,529 4,826 1972 1,247 168 3,929 1973 872 2,064 2,936 1974 1,535 4,341 5,876 1975 1,613 3,030 4,643 ii) The Logone 500-1,000 tons per year. 2. STTF i) The Chari Upstream (N'Djamena-Sarh) - 400 tons/year Downstream (Sarh-N'Djamena) - 2,400 tons/year ii) The Logone Upstream (N'Djamena-Moundou) - 320 tons/year. Downstream (Moundou-N'Djamena) - 600 tons/year. 3. Barge Transport on Lake Chad is estimated at 5-6000 tons/year. II. Goods Transported Itinerary Major Goods N'Djamena-Sarh Fuel Sarh-N'Djamena Wood, Sugar N'Djamena-Moundou Empty beer cases Moundou-N'Djamena Beer N'Djamena-Lake Chad Fuel, Flour Sugar LAke Chad-N'Diamena Natron, Fish In addition, general merchandize items are carried on all itineraries. Some passenger transport, although illegal, is also effected. Source: CONIOUNA, STTF, 1976. Mission estimates. Table 32 CHAD TRANSPORT SECTOR MEMORANDUM Air Tchad Operations, Revenues and Expenditures A A.* Operations lear Passengers 1FkC__reiL. MIaL.L (tons) (tons) 10 1,415 646 93 1974 16,003 376 142 1975 19,830 490 74 1976 19,535 387 77 B. Revenues and Expenditures Year Revenues Expenditures (CFAF million) (CFAF million) 1975 331 340 1976 3471/ 4922/ 1/ In 1976, CFAF210 million was owed by the Government to Air Tchad. 2/ In 1977, expenditures are expected to drop to CFAF56 million as the cost ofexpatriate technical staff of Air Tchad would be covered by a French Government subsidy. Source: Air Tchad, 1976. Table '- CHAD TRANSPORT SECTOR MEMORANDUM Air Transport Tariffs from N'Djamena January 1976 Destination Distance Freight Tariff - CFAF/kg Passenger Tariff-1/ (kmn) -29Okg +250ka CFAF/seat Abechg 645 150 105 23,350 Am-Timan 575 105 90 20,750 Ati 375 85 70 13,200 Bol 150 55 - 6,100 Bongoi 200 70 60 8,250 Faya-Largeau 780 175 140 27,300 Mongo 390 85 70 13,200 Moundou 400 85 70 16,450 Palu 300 70 60 12,350 Sarh 480 85 70 17,450 1/ Includes tax (4-5%) Source: Air Tchad, 1976. CHAD Table 34 TRANSPORT SECTOR MEMORANDUM Domestic Training Resources Institution Type of Training Number of students Observations 1! 1. Ecole nationale Technical Assistant 113 4-year program. des travaux publics (VNTP) 2/ 2. Coll6ge et lyc6e Technician (Bac) 13 graduated per year 3-year program technique 3/ Technician (CAP) 8 graduated per year To be expanded 2.5 times in 1977-78. 3. Centre de forma- Technician (CAP) 100 per year 2-year program tion profession Most graduates go to nelle et de per the private sector. fectionnement CCFPP) 4. ORT Training Retraining of 127 trained in Both theory and Program Directorate of Public 2 years practical work- Works personnel. 1/ 50% Chadians; of these one-half trained for DPW. -3/ C-AD Crtificat d'Aptitude Professionelle. Sou rctLL P Source: Etude Preliminaire de V'Entretien des Routes en Terre, BCEOM, 1977 pp. 3.1.8 - 3.22 EXHIBIT I CHAD TRANSPORT SECTOR MEMORANDUM MONTHLY INTERNAL AIR TRAFFIC-1975 PASSENGERS 450C ------- - - --- ---- --- - - -- - FREIGHT PER MiONTH PER MONTH (TONS) 4000- -100 I \ 80 3000 - 60 2000- -- -- -- -- - - - - - ----- 7 40 100) - ---- -- - - -- - ----- -- --- 20 JAN. FEB. MAR. APR MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. Source: Air Tchad Woild Bank - 18806 EXUTIBTT TT CHAD TRANSPORT SECTOR MEMORANDUM FINANCIAL COST OF FREIGHT TRANSPORT, NET OF TAXES SEMI-TRAILER ROUTE 1: PAVED t 18- LOAD FACTOR 50% ~~1 16K 15 - HYPOTHESIS: PURCHASE OF INPUTS IN CHAD HYPOTHESIS: PURCHASE OF INPUTS OUTSIDE CHAO < HYPOTHESIS: PARTIAL PURCHASE OF INPUTS OUTSIDE CHAD 0 UN MAX z I 13L- I ~PROPOSED AVERAGE TARIFF H3 NMIN ACTUAL TARIFF 11 - 101 I- I 30 40 50 60 70 100 ii() ANNUAL KILOMETERAGE (KM/YRx1000) World Bank-17646 SOURCE: ORGATEC, 1977 CHAD EXHIBIT III T RAISPORTSEC T n IAEIORANDUMII FINANCIAL COST OF FREIGHT TRANSPORT, NET OF TAXES 22L i TmuCK15-- MAILER UNIT ROUTE 2: 80%GRAVEL 20%PAVED 21 -\ i\ HYPOTESIS: Hl PURCHASE OF IMPUTS IN CHAD OUTSIDE CHAD 455 19% MAX z 17 -'"H ' H 1H3 PROPOSED AVERAGE TARIFF -6 - 161 MIN 65% 4Z: 14 13" \ 75% \H3 10 20 30 40 50 60 70 80 90 A NNUA L KI LOMETER AG E (KM /YR.x1000) FIGUR ES IN% ARE LOAD FACTORS SOURCE: ORGATEC, 1977 Worid Bank --17647 EXHIBIT Iv CHAD TRANSPORT SECTOR MEMORANDUM 30K- FNANCAL rn-T r- FREIHT TRANSPORT TRUCK TRAILER UNIT IROUTE3: GRAVEL ROAD 25 -- HYPOTHESIS: H1 PURCHASE'OF INPUTS IN CHAD HYPTHSi H PRTi LPUCHS-OFINPUTS OUTSIOE CHAD MAX o 2 i u PROPOSED AVER AGE TARItFF MIN' H1I H3 10 -- -- Lu 13 20 30 40 50 60 70 80 ANNUJAL Kil-nMETERAGE (KM/YRxl000) !j FIGURES IN % ARE LOAD F ACTORS. Worid Sank 17648 SGURCE: ORGATEC, 1977 EXHIBIT V CHAD TRANSPORT SECTOR MEMORANDUM F NCIAL rnQT OF FRFIMGHT TRANSPORT NET OF TAXES SINGLE UNIT TRUCK ROUT A!FaRTW Rnan iåNn-L-Ayi -- HYPOTHESIS: H1 PURCHASE OF INPUTS IN CHAD HYPOTHESIS: H3 PARTIAL PRUCHASE OF INPUTS OUTSIDE CHAD MAX 55% UM PROPOSED AVERAGE TARIFF 30-- N75% \ N4~MIN. H3 20 -100% o I I |I | 10 20 30 40 50 60 70 80 90 ANNUAL KILOMETERAGE (KM/YRx1000) 11 F1IRrq !N % ARE LOAD FACTORS SOURCE: ORGATEC. 1977 Worid Bank - 17652 EXHIBIT VI CHAD TRANSPORT SECTOR MEMORkNUM FINANCIAL COST OF FREIGHT TRANSPORT, NET OF TAXES SINGLE UI IT TRIUCIK ROUTE 5:EARTH TRACK (SAHEL ZONE) 45 -- \ H1 HYPOTHESIS: H1 PURCHASE OF INPUTS IN CHAD . . HYPOTHESIS: H3 PARTIAL PURCHASE OF INPUTS OUTSIDE CHAD *H3 *ý 55%1 MAX PROPOSED AVERAGE TARIFF 401.- -- - -- -- - - - - - - - --- - -- - - - - - - - (ACTUAL TARIFF-60 CFAF/TON-KM) MIN u 65% 35 H3 75% 30 H 100% 130 20 30 40 50 60 70 80 90 KILOMETEPAiE,lANNUEL (KM/ANx1000) FIGURES IN% ARE LOAO FACTORS SOURCE: ORGATEC, 1977 World Bank- 17653 - CHAD TRANSPORT SECTOR MEMORANDUM ORGANIGRAMME I ORGIANIG 0RAME MINISTRY OF ECONOMY, PLANNING AND TRANSPORT MINISTER PERSONAL STAFF IRECORAT GE..7.OFFICE OF STUD IES DIETRT EEA AND DOCUMENTATION UIREC;TORATE DIRECTORATE DRCOAEO OF PLANNING OFREC ME DIRECTOATE OF AND DEVELOPMENT AFFAIRS TRANSPORT qlUB-niREr-nATrQ yn SU-cnCOAE PLANNING STATISTICS COMMERCE INDUSTRY ROAD TRANSPOAT UAN TRANSPORT SERVICE SERVICE PRICE INTERNAL INTERNATIONAL FNANCESERVICE COMMERCE RELATIONS FLUVIAL TRANSPORT AIR TRANSPORT SERVICE COMMERCE rL I SERVICE SERVICE INFRASTRUCTURE POPUATION EXTERNAL INDUSTRY AND AND URBANIZATION [ COMMERCE INVESTMENTS HUMAN GENERAL RESOURCES STATISTICS U STUDIES AND ECONOMIC ATTACHED ORGANIZATIONS DOCUMENTATION AC COUNTS BPIT AIR TCHAO RURAL MCT (CIGARETTES) COTONTCHAD SEERAT CAISSE AVACHIDE EXTERNAL SIVIT (MEAT) CAISSE COTON AID SONACOT (COMMERCE) CAISSE PETROLE SONASUT CAISSE SUCRE STT (TEXTILE) CHAMBER OF COMMERCE HUILERIE D'ABECHE Ward Bank - 18808 CHAD ORGANIGRAMME II TRANSPORT SECTOR MEMORANDUM ORGANIGRAMME MINIST RY OF CIVIL WORKS. MINES AND GEOLOGY E ASECNA (REGIONAL CIVIL AVIATION AGENCY) j STEE (ELECTRICAL ENERGY) MINISTER - OFCA (OFFICE OF GUARRIES) ENTP (NATIONAL SCHOOL OF PUBLIC WORKS) PEIS SONABA (NATIONAL SOCIETY OF BUILDINGS) STA FF ý-i SECRETARY-GENERAL DIRE~CTORATE 0F --- STUDIES AND DIRECTORATE OF LAND.fECO AS' ERECRATEO GEEAL DRETBAEO SURVEYS ORCORT Ol SERC DPUBLICWORKS - HYDRCS MINESAND URBANIZATION CIVILAVIATION SERVICE GEOLOGY AND ENVIROMENT F r * A DMEN ROL NTN N OJAMENA S1BDIVSONFOF STRICT OADS HYDRAILICS BUILDINGS WAT RV C .IE isrRICT MAEREIAS N> ITERAO- IEVC N'IAMENA ABEC-IE SARH MOUNDOU UTOMOBILE SUBDIVISICN SUDIVISION SUBElVSION SECTION su VI ___sli E ] E_ IDIVISIN ROAD NEW WORKS MINTENANCE BUILOINGS W'odd Bank - 18800 ORGANIGRAMME III CHAD TRANSPORT SECTOR MEMORANDUM T%T -ORGANIG-0A RAAAE PRESIDENT ..ee .*** MINISTRY OF ECONOMY. PLAN & TRANSPORT DIRECTORATE OF TRANSPORT I Im=n ADVISE R ACCOUNTANt I DIRECTOR I GENERAL I I SECRETARIAT ASSISTANT DIRECTOR ATIOPERSONNEL FIAT SERVICE OPERATIONS ACCOUNTS INVOICING COMPUTING SERVICE SERVICE SERVICE SERVICE ALtiAU ALCivl, T AGEC (ABECHE) (SAAH) (MOUNDOU) 1I I1 EXTERNAL EXTERNAL EXTERNAL / 1 I AGENCY \ |AGENCY AGENCY EPRENTATIVEI (GAROUA) NGA UNDERE (BANGUI) World Bank - 18794 ORGANIGRAMlE IV CHAD TRANSPORT SIECTOR MEMORANDUM FREIGHT BUREAU PROPOSED ORGANIZATION DIR ECTOR .......... A T [ -Di ADV ISORY ..... `tECTOATE- O TRANSPORT] FREIGHT CONTROL FREIGHT ALLOCAT ION SERVICE 2* SERVICE (2) INTERNAL: kBECHE SARH MO UNDO BR ANCH (2 1211 12)I OFFICEs EXTERNAL: DU 3ALNDER MAIDUGUF BANGUI LF(2 1N_PARENTHESLS2) [PAS F U D(2. an-18 *FIGURES IN PARENTHESIS ARE PRINCIPAL STAFF REQUIRED.WOetBn-180 ORGANIGRAMME V CHAD TRANSPORT SECTOR MEMORANDUM CTT - PROPOSED REORGANIZATION GEERAL ASSEMBLY PRESIDENT ]- - LADMINISTRATIVE COUNCIL CHARTERED ............................................................. DIRECTORATE OFTRANSPORT ACCOUNTANT DIRECTOF GENERAL PEIRSONNEL SECTION ""SECRETARIAT DIREC:TOR OF OPERATIONS SECRETARIAT OPERATION BILLING AND EACCOUNTS SECTIONIJ COMPUTING SECTION F IAT INVOICING SECTION If HANDLES LOANS TO MEMBERS OF THE COOPERATIVE, IN ADDITION. World Bank - 18802 IBRD 2684R2 SEPTEMBER 1977 A. R.E. l IRYA ALGERIA -~~~ K]- I C- NuC H A D CHAD SUDAN adug5 Nga.un C NT AL' AFRICAN EMPIRE --EAong Ar Eu S) GULF OFUGUENE LIREVILL -REP B I EPL ý JB*\ Oaad ZAIRE CONG AZZAVLN INTERNATIONAL TRANSPORT CbJ P.I.te-bN.i ANGOLA (ABINMAINnDRIlIWEATHEn dMAIN ROADS (SEASONAL) R AILROADS -- •INTERNATIONAL BOUNDARIES ACNGLAd) J MIL m.nd - .r M I-Ip t, whi a tched Th . d h C pIAh- u mpn-esas ntr roa e s nt 닌 MAY 1978 - � - ------ - .` ` li^ lб• lН° г0' 20 i `.� /�-.:,,� � .�\ 1 � 4,� I `�`.��� �`�,. L 1 В У А j A.R.E. --- - _ � � �'�_ I г' ��- _---__' - � I sг^ п� �1�_ '" ._\ � \ r _ _ �,\ , впгоа� ' . `� I _ � � \^ � � _ ' - I � �п�, CHAD � .\ ` I '�. "�-�.� � ��;е��и TRANSP®RTATION ����� __1 го �снР � �.� г. 1.� � � д � � Тоо�п пя .а. �\j сл _ �� � � С , Q BORKOU-ENNEOI-Т1ВЕ5Т1 �� � 1 � о о е� в I D � s I z /е• ` I �� AF6EAU I I ( I гаеа �и� N1GE� � iI � 1 � 1 / /д� 16' /• '� I j / спа�а�е, ( � �..J �' /� ��- ,во j �i цаа В � 1 N Е\`�___ К А N Е М -1 �' еоа?wons. 15oia1 /" .., rT \ � � l %//� SPHEL �� - вi�тiи �!"�°��� ��J �� iпкесндо � / ае / � � •, lOGOиE /�. � 4 / �� sоиньли .� � р,�l:��; �...... �>i- fi ' S/ ��%/ �G�/�//�/ i���6�j�/�,/i �// � iснеагне �•� � � � � ьи aonos -�ьеw.чаь.---- --"�"---'_ _" �"', / _ _- 'ti..��/ �f `kй`е., /�i//��/Т�,; i��;//��//� � Гпl►лм.,I `sесоиопвчвоав5._ �� ��Фс ���; %�//� , �лТ1i �// �/�. � �/ -, . ... / / -У �/� � �н°° / 'L а 1 - ' /�� �/_'/ h,4�L� / / � 1 iНРГКS -_-- / //� � �: /��. 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